B.__Coordinate the State Emergency Operations Center with the council;

C.__Coordinate with other state agencies in the development of their emergency response plans;

D.__Administer the review and approval of all grant applications developed by local and state agencies for homeland security funds; and

E.__Administer homeland security grant funds.

Sec. 13. 37-B MRSA §745, as enacted by PL 2005, c. 439, §1, is amended to read:

§745. Disaster Relief Fund

1. Fund established. There is established the Disaster Relief Fund, referred to in this section as "the fund," to be administered by the agency.

2. Sources of fund. The following must be paid into the fund:

A. All money appropriated for inclusion in the fund;

B. All interest from investment of the fund; and

C. Any other money deposited in the fund to implement the provisions of this subchapter from the Department of Defense, Veterans and Emergency Management, Disaster Assistance Relief, Other Special Revenue Funds account.

3. Use of fund. The fund must be the first resource used when section 742 or 744 is invoked. The fund may also be used for the purpose of matching federal funds in the event of a federally declared disaster.

4.__Fund balance.__The fund's balance may not exceed $3,000,000.__Any amount, including interest, that accrues in excess of $3,000,000 must be transferred by the State Controller to the Maine Budget Stabilization Fund, established in Title 5, section 1532.

5.__Annual report.__The director shall submit a written