Bill
SB 420
Restricts the State Lakes Protection and Restoration Fund to Deep Creek Lake projects and extends the $1M annual appropriation through FY2027.
Status
- Bill Number: SB 420
- Title: State Lakes Protection and Restoration Fund — Alteration and Extension
- Introduced: (filed in Senate) Jan. 20, 2025 (assigned to Education, Energy, and the Environment and Budget & Taxation)
- Hearing: Feb. 11, 2025 (Education, Energy, and the Environment)
- Effective date (if enacted): June 1, 2025
Summary / Main purpose
- Restricts the purpose and authorized uses of the State Lakes Protection and Restoration Fund so that it may be used solely for protection and restoration of Deep Creek Lake.
- Extends the sunset (termination) date applicable to the statutory provisions that require a mandated annual appropriation to the Fund, moving the end date from June 30, 2025 to June 30, 2027. As a result, a mandated $1.0 million appropriation to the Fund will continue through Fiscal Year 2027.
Key provisions and changes
- Purpose narrowed: The Fund’s authorized uses are explicitly limited to projects for Deep Creek Lake, including:
- Removing sediment;
- Treating contaminated sediment;
- Preventing spread of invasive species;
- Improving ecological and recreational value; and
- Any other actions the Department of Natural Resources (DNR) determines necessary for Deep Creek Lake.
- Administration and structure retained: the Fund remains a special, nonlapsing special fund administered by the Secretary of Natural Resources; Treasurer holds the Fund and interest earnings are credited to it.
- Funding mandate extended: the Governor must include a $1.0 million appropriation to the Fund for fiscal year 2027 (continuing the appropriation that was previously mandated through earlier enactments).
- Clarification that expenditures from the Fund are supplemental (not a substitute) for other appropriations for lake protection/restoration.
Who is affected
- Deep Creek Lake and communities, businesses and recreational users in its watershed — projects and restoration efforts there are the exclusive allowable recipients of Fund resources.
- Department of Natural Resources — continues as Fund administrator and decisionmaker on permitted actions.
- State budget/finance — continues the mandated $1.0 million appropriation for FY2027.
- Small businesses and contractors that do restoration, dredging, invasive species control, and related work may benefit from contracting opportunities funded by the appropriation.
Fiscal and timeline notes
- Fiscal note (Department of Legislative Services): General Fund expenditures increase by $1.0 million in FY2027 (the year the mandated appropriation continues). Special fund revenues and expenditures for the Fund increase by the same amount in FY2027. No fiscal impact in FY2026 is assumed.
- Term extension: the authorizing chapter (Chapter 698 of 2018, as amended) is extended through June 30, 2027; the bill takes effect June 1, 2025.
Context / Implementation considerations
- The bill narrows the scope of a statewide lake-protection fund to a single lake (Deep Creek Lake), concentrating resources and the statutory appropriation on that resource through FY2027.
- Any projects funded must conform to DNR determinations and the statutory list of eligible activities; the law continues to treat Fund expenditures as supplemental to other funding.
- If enacted, the FY2027 budget must include the mandated $1.0 million appropriation to the Fund.
Compiled from official sources — confirm details with the bill’s official record.
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