EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1290* HOUSE BILL 1290 F1 2lr0385 By: Delegate McIntosh Introduced and read first time: February 11, 2022 Assigned to: Appropriations A BILL ENTITLED AN ACT concerning 1 Education – Public School Construction – Funding and Administration 2 FOR the purpose of requiring the Interagency Commission on School Construction to take 3 certain actions relating to public school construction, including updating certain 4 regulations, increasing the State share of certain school construction project costs 5 under certain circumstances, inspecting certain systems and equipment during 6 inspections of school buildings, establishing certain processes for appeals and for 7 reporting certain information regarding school buildings, and including certain 8 information in the Integrated Master Facility Asset Library; prohibiting the 9 Interagency Commission, unless certain conditions are met, from taking certain 10 actions relating to public school construction, including making a certain deduction 11 when calculating a certain State construction allocation, using facility assessment 12 data, and making funding decisions based on facility assessment results; renaming 13 the Local Share of School Construction Costs Revolving Loan Fund to be the School 14 Construction Revolving Loan Fund; altering the purpose and eligibility criteria of 15 the School Construction Revolving Loan Fund; providing for the repayment of loans 16 to the School Construction Revolving Loan Fund; altering and extending certain 17 mandated appropriations to the School Construction Revolving Loan Fund, the 18 Healthy School Facility Fund, and the Public School Facilities Priority Fund; 19 authorizing a county to use a loan from the School Construction Revolving Loan 20 Fund for a certain purpose; declaring the intent of the General Assembly regarding 21 funding for public school construction; requiring the Interagency Commission and 22 the Maryland Department of Health to make a certain determination about food 23 preparation equipment used in schools; and generally relating to the funding and 24 administration of public school construction. 25 BY repealing and reenacting, with amendments, 26 Article – Education 27 Section 5–303(d)(3) and (5) and (k), 5–310(b), (f), and (g), 5–315, 5–322(j)(1), and 28 5–326(i) 29 Annotated Code of Maryland 30 2 HOUSE BILL 1290 (2018 Replacement Volume and 2021 Supplement) 1 BY repealing and reenacting, without amendments, 2 Article – Education 3 Section 5–303(d)(4), 5–310(a), 5–322(a) and (b), and 5–326(a) and (b) 4 Annotated Code of Maryland 5 (2018 Replacement Volume and 2021 Supplement) 6 BY adding to 7 Article – Education 8 Section 5–303(l) and 5–327 9 Annotated Code of Maryland 10 (2018 Replacement Volume and 2021 Supplement) 11 BY repealing and reenacting, with amendments, 12 Article – Economic Development 13 Section 10–650(c) 14 Annotated Code of Maryland 15 (2018 Replacement Volume and 2021 Supplement) 16 BY repealing and reenacting, without amendments, 17 Article – State Finance and Procurement 18 Section 6–226(a)(2)(i) 19 Annotated Code of Maryland 20 (2021 Replacement Volume) 21 BY repealing and reenacting, with amendments, 22 Article – State Finance and Procurement 23 Section 6–226(a)(2)(ii)101. 24 Annotated Code of Maryland 25 (2021 Replacement Volume) 26 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 27 That the Laws of Maryland read as follows: 28 Article – Education 29 5–303. 30 (d) (3) The regulations adopted by the Interagency Commission shall contain 31 provisions: 32 (i) Subject to subsection (k) of this section, establishing a State and 33 local cost–share formula for each county that identifies the factors used in establishing the 34 formulas and the actual State and local cost–share percentages by the formula for each 35 county; 36 HOUSE BILL 1290 3 (ii) Requiring local education agencies to adopt educational facilities 1 master plans and annual capital improvement programs; 2 (iii) [Providing] SUBJECT TO SUBSECTION (L) OF THIS SECTION, 3 PROVIDING a method for establishing a maximum State construction allocation for each 4 project approved for State funding; 5 (iv) Referencing the policies stated in § 5–7B–07 of the State Finance 6 and Procurement Article; 7 (v) Requiring local school systems to adopt procedures consistent 8 with the minority business enterprise policies of the State as required under the Code of 9 Maryland Regulations; 10 (vi) Establishing a process for appeal of Interagency Commission 11 decisions, INCLUDING AN APPEAL PROCESS SPECIFIC ALLY FOR APPROVED 12 ENROLLMENT PROJECTS FOR INDIVIDUAL PROJE CTS TO THE FULL INTERAGENCY 13 COMMISSION; 14 (vii) Requiring local education agencies to adopt, implement, and 15 periodically update comprehensive maintenance plans and preventative maintenance 16 plans; 17 (viii) Authorizing the Interagency Commission to withhold State 18 public school construction funds from a local education agency that fails to comply with the 19 requirements of item (vii) of this paragraph; 20 (ix) Requiring the development and submission of long–range plans, 21 including a requirement for the annual submission of a 10–Year Educational Facilities 22 Master Plan; and 23 (x) Requiring the submission of an annual Capital Improvement 24 Program, which may only be required to include plans for specific projects and requests for 25 planning and construction projects for the upcoming fiscal year. 26 (4) In adopting any of these requirements, the State Board and the 27 Interagency Commission shall provide for the maximum exercise of initiative by school 28 personnel in each county to ensure that the school buildings and improvements meet both 29 the needs of the local communities and the rules and regulations necessary to ensure the 30 proper operation of this section and the prudent expenditure of State funds. 31 (5) The Interagency Commission shall [update]: 32 (I) UPDATE the regulations required under paragraph (3)(i) of this 33 subsection every 2 years; AND 34 4 HOUSE BILL 1290 (II) WHEN UPDATING THE REG ULATIONS IN ACCORDAN CE WITH 1 ITEM (I) OF THIS PARAGRAPH , LIMIT THE PERCENTAGE DECREASE IN THE STATE 2 SHARE OF SCHOOL CONS TRUCTION COSTS TO NOT MORE THAN 5% FOR EACH 3 COUNTY. 4 (k) (1) A county is eligible for an adjustment to the local cost–share for school 5 construction projects under paragraph (2) of this subsection if: 6 (i) A county’s median household income is in the bottom quartile in 7 the State; and 8 (ii) The State and local cost–share formula for the county is 50% 9 State and 50% local. 10 (2) (i) The local cost–share of a school construction project in a county 11 that is eligible under paragraph (1) of this subsection shall be reduced to equal the local 12 cost–share of the adjacent county that is less than 50% but closest to 50%. 13 (ii) The State cost–share of a school construction project in the 14 eligible county shall be increased by a percentage that is equal to the reduction under 15 subparagraph (i) of this paragraph. 16 (3) A COUNTY SHALL RECEIVE : 17 (I) A 10% INCREASE IN THE STATE SHARE OF A SCHOOL 18 CONSTRUCTION PROJECT IF THE PROPOSED SCHOOL CONS TRUCTION PROJECT IS 19 AT A SCHOOL WI TH A CONCENTRATION O F POVERTY LEVEL , AS DEFINED IN § 5–223 20 OF THIS TITLE, OF 80%; 21 (II) A 5% INCREASE IN THE STATE SHARE OF A SCHOOL 22 CONSTRUCTION PROJECT IF THE PROPOSED SCHOOL CONS TRUCTION PROJECT IS 23 AT A SCHOOL WITH A C ONCENTRATION OF POVE RTY LEVEL, AS DEFINED IN § 5–223 24 OF THIS TITLE, OF LESS THAN 80% BUT GREATER THAN 55%; 25 (III) A 5% INCREASE IN THE STATE SHARE OF A SCHOOL 26 CONSTRUCTION PROJECT IF THE PROPOSED SCHOOL CONS TRUCTION PROJECT IS 27 AT A SCHOOL THAT , IN THE MOST RECENT S CHOOL MAINTENANCE EFFECTIVENESS 28 ASSESSMENT BY THE INTERAGENCY COMMISSION, RECEIVED AN ASSESSME NT 29 RATING OF: 30 1. GOOD; 31 2. SUPERIOR; OR 32 3. ADEQUATE AND THE SCHO OL’S CURRENT SCHOOL 33 HOUSE BILL 1290 5 FACILITY ASSESSMENT PERCENT OF EXPECTED USEFUL LIFE IS AT LE AST 100%; AND 1 (IV) A 5% INCREASE IN THE STATE SHARE OF A SCHOOL 2 CONSTRUCTION PROJECT IF THE PROPOSED PROJECT IS TO BUILD A NET –ZERO 3 SCHOOL. 4 (L) THE INTERAGENCY COMMISSION MAY MAKE A N ELIGIBLE 5 ENROLLMENT DEDUCTION FOR AN ADJACENT SCHO OL WHEN CALCULATING THE 6 MAXIMUM STATE CONSTRUCTION ALLOCATI ON FOR A PROJECT APP ROVED FOR 7 STATE FUNDING UNDER S UBSECTION (D)(3)(II) OF THIS SECTION ONLY IF THE 8 AVAILABLE SEAT COUNT IN AN ADJACENT SCHOO L IS 15% OR MORE OF THE 9 ADJACENT SCHOOL ’S ENROLLMENT . 10 5–310. 11 (a) (1) In this section the following words have the meanings indicated. 12 (2) “Educational facilities sufficiency standards” means a uniform set of 13 criteria and measures for evaluating the physical attributes and educational suitability of 14 public elementary and secondary school facilities in the State. 15 (3) “Facility condition index” means a calculation to determine the relative 16 physical condition of public school facilities by dividing the total repair cost of a facility by 17 the total replacement cost of a facility. 18 (b) (1) (I) Each fiscal year, the Interagency Commission shall survey the 19 condition of school buildings identified by the Department. 20 (II) THE INTERAGENCY COMMISSION SHALL INCL UDE IN THE 21 INSPECTIONS OF INDIV IDUAL SCHOOL BUILDIN GS: 22 1. A PROCESS F OR A LOCAL EDUCATION AG ENCY TO 23 REPORT ANY ADDITIONA L INFORMATION RELEVA NT TO THE INSPECTION , 24 INCLUDING A PLACE IN THE MASTER FACILITY ASSET LIBRARY SYSTEM FOR THE 25 LOCAL EDUCATION AGEN CY TO: 26 A. REPORT EACH YEAR TO THE INTERAGENCY 27 COMMISSION ON ANY DEFICIENCIES IN A SCHOOL B UILDING, EVEN IF THE SCHOOL 28 BUILDING WAS NOT INS PECTED IN ACCORDANCE WITH PARAGRAPH (2) OF THIS 29 SUBSECTION IN THE PR IOR YEAR; 30 B. IDENTIFY SPACES IN A SCHOOL BUILDING LIKE LY TO 31 HAVE BEEN PAINTED WITH LEAD PA INT; AND 32 6 HOUSE BILL 1290 C. REPORT CERTIFICATION OF THE ASBESTOS HAZARD 1 EMERGENCY RESPONSE ACT PLAN FOR THE SPAC E; AND 2 2. A PROCESS TO INCORPORA TE MAINTENANCE DATA 3 FOR INDIVIDUAL SCHOO L BUILDINGS. 4 (2) (I) The Interagency Commission shall conduct the inspections of 5 individual school buildings that are necessary to complete the survey required in paragraph 6 (1) of this subsection. 7 (II) THE INSPECTIONS COMPL ETED UNDER PARAGRAPH (1) OF 8 THIS SUBSECTION SHAL L INCLUDE AN INSPECT ION OF THE FOLLOWING ITEM S FOR 9 EACH SCHOOL BUILDING : 10 1. TEMPERATURE ; 11 2. HUMIDITY; 12 3. CARBON DIOXIDE LEVEL; 13 4. ACOUSTIC LEVELS ; 14 5. LEAD PAINT; 15 6. ASBESTOS; 16 7. KITCHEN SANITARY EQUI PMENT; 17 8. LIGHTING; 18 9. EMERGENCY COMMUNICATI ON SYSTEM , WITH 19 RESPECT TO REMAINING USEFUL LIF E; 20 10. HEALTH ROOM ATTRIBUTE S; 21 11. SAFETY EQUIPMENT IN E ACH LABORATORY SPACE ; 22 AND 23 12. THE FUNCTIONALITY OF : 24 A. HEATING, VENTILATION, AND AIR–CONDITION ING 25 BUILDING SYSTEMS ; 26 B. LIFE SAFETY BUILDING SYSTEMS; 27 HOUSE BILL 1290 7 C. ROOFS; AND 1 D. ANY ADDITIONAL CRITIC AL BUILDING SYSTEMS 2 IDENTIFIED BY THE INTERAGENCY COMMISSION. 3 (3) The Interagency Commission shall report to the Governor and the 4 General Assembly, on or before October 1 of each year, in accordance with § 2–1257 of the 5 State Government Article, on the results of the survey for the prior fiscal year. 6 (f) (1) Following the completion of the initial statewide facilities assessment, 7 the Interagency Commission shall develop standards and procedures to comprehensively 8 update the facilities assessment such that facility assessment data is not older than 4 years. 9 (2) Local education agencies shall: 10 (i) Cooperate with the Interagency Commission to update the 11 facility assessment; and 12 (ii) Contribute data as requested to update the assessment. 13 (3) (i) The Interagency Commission shall enter the facility assessment 14 data into an integrated data system, which shall be known as the Integrated Master 15 Facility Asset Library. 16 (ii) The Interagency Commission shall manage the Integrated 17 Master Facility Asset Library and shall provide access to the Library for all local education 18 agencies using a cloud–based system. 19 (4) THE INTEGRATED MASTER FACILITY ASSET LIBRARY SHALL 20 INCLUDE PREVENTIVE MAINTENANC E SCHEDULES ACCESSIBLE TO EACH LOCAL 21 EDUCATION AGENCY. 22 (g) (1) (I) [After completion of the initial facility assessment] EXCEPT AS 23 PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , the Interagency Commission 24 [shall share the data results with the Workgroup on the Assessment and Funding of School 25 Facilities and, with the Workgroup, shall consider: 26 (i) How the relative condition of public school facilities within the 27 educational facilities sufficiency standards and the facility condition index should be 28 prioritized, taking into account local priorities and in consultation with local jurisdictions; 29 and 30 (ii) If determined to be appropriate, use of the assessment results in 31 funding decisions] MAY NOT USE ANY FACILITY ASSESS MENT DATA UNTIL THE 32 INTERAGENCY COMMISSION ESTABLISHES THE INTEGRATED MASTER FACILITY 33 8 HOUSE BILL 1290 ASSET LIBRARY. 1 (II) AFTER THE INTERAGENCY COMMISSION HAS ESTABLISHED 2 THE INTEGRATED MASTER FACILITY ASSET LIBRARY, AND ON OR AFTER MAY 1, 3 2026, THE INTERAGENCY COMMISSION SHALL ADOP T REGULATIONS ESTABLISHING 4 THE USE OF THE FACIL ITY ASSESSMENT RESUL TS IN ANNUAL SCHOOL 5 CONSTRUCTION FUNDING DECISIONS BEGINNING NO T SOONER THAN FISCAL Y EAR 6 2027. 7 (2) [During the consideration process under paragraph (1)(i) of this 8 subsection, the Interagency Commission and the Workgroup shall: 9 (i) Evaluate each school’s facilities using the replacement value of a 10 modern system; and 11 (ii) Prioritize building systems that are furthest beyond the useful 12 life of the system] BEFORE THE INTEGRATED MASTER FACILITY ASSET LIBRARY IS 13 ESTABLISHED, THE INTERAGENCY COMMISSION MAY USE FACILITY ASSESSMENT 14 DATA TO: 15 (I) PROVIDE CONTEXT TO PROGRAMS THE INTERAGENCY 16 COMMISSION ADMINISTERS; 17 (II) WORK WITH LOCAL EDUCA TION AGENC IES; 18 (III) FULFILL LEGISLATIVE R EQUESTS; 19 (IV) COMPLETE ANY INTERAGENCY COMMISSION ANALYSIS O R 20 REPORT; AND 21 (V) ASSIST WITH ANY EXTERNAL REPORTS . 22 [(3) Based on the recommendations of the Workgroup on the Assessment 23 and Funding of School Facilities, and not before May 1, 2022, for use in funding decisions 24 beginning no sooner than fiscal year 2023, the Interagency Commission shall adopt 25 regulations establishing the use of the facility assessment results in annual school 26 construction funding decisions.] 27 5–315. 28 (a) In this section, “Fund” means the [Local Share of School Construction Costs 29 Revolving Loan] SCHOOL CONSTRUCTION REVOLVING LOAN Fund. 30 (b) There is a [Local Share of School Construction Costs Revolving Loan] 31 HOUSE BILL 1290 9 SCHOOL CONSTRUCTION REVOLVING LOAN Fund. 1 (c) The purpose of the Fund is to provide loans to local governments to forward 2 fund the STATE OR local share of school construction costs for local education agencies that 3 rely on the STATE OR local share to be fully funded in order to complete a project. 4 (d) The Interagency Commission shall administer the Fund. 5 (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 6 the State Finance and Procurement Article that shall be available in perpetuity for the 7 purpose of providing loans in accordance with the provisions of this section. 8 (2) The State Treasurer shall hold the Fund separately, and the 9 Comptroller shall account for the Fund. 10 (f) The Fund consists of: 11 (1) Money appropriated in the State budget to the Fund; 12 (2) Any interest earnings of the Fund; 13 (3) Repayments of principal and interest from loans made from the Fund; 14 and 15 (4) Any other money from any other source accepted for the benefit of the 16 Fund. 17 (g) The Fund may be used only to provide low– or no–interest loans to local 18 governments. 19 (h) (1) The State Treasurer shall invest the money of the Fund in the same 20 manner as other State money may be invested. 21 (2) Any interest earnings of the Fund shall be credited to the Fund. 22 (i) Money expended from the Fund is supplemental to and is not intended to take 23 the place of funding that otherwise would be appropriated to local governments for school 24 construction. 25 (j) (1) Subject to paragraph (2) of this subsection, the Interagency 26 Commission shall establish application procedures and eligibility criteria for loans from the 27 Fund. 28 (2) The eligibility criteria shall include that a local [government is] 29 SCHOOL SYSTEM : 30 10 HOUSE BILL 1290 (i) [In] IS IN need of a loan to forward fund the local share of school 1 construction costs in order to complete a project; [and] 2 (ii) [Able] IS ABLE to demonstrate the ability to repay the loan if 3 required at a later date; AND 4 (III) HAS RECEIVED PLANNING APPROVAL FOR THE PRO JECT 5 FROM THE INTERAGENCY COMMISSION. 6 (3) THE INTERAGENCY COMMISSION SHALL GIVE PRIORITY IN 7 AWARDING LOANS FROM THE FUND TO COUNTIES THAT HAVE : 8 (I) NOT ADVANCED CONSTRUCTIO N FUNDING FOR PROJEC TS 9 IN THE PUBLIC SCHOOL CONSTRUCTION PROGRAM THAT THE INTERAGENCY 10 COMMISSION HAS APPROV ED FOR PLANNING ; AND 11 (II) LIMITED DEBT CAPACITY . 12 (K) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 13 COUNTY SHALL REPAY A LOAN F ROM THE FUND NOT LESS THAN 5 YEARS AFTER 14 RECEIVING THE LOAN F ROM THE FUND. 15 (2) THE INTERAGENCY COMMISSION MAY ESTABL ISH A PROCEDURE 16 FOR A WAIVER FROM TH E REQUIREMENT UNDER PARAGRAPH (1) OF THIS 17 SUBSECTION. 18 (L) (1) IN FISCAL YEAR 2023, THE GOVERNOR SHALL INCLUDE IN THE 19 ANNUAL BUDGET BILL A N APPROPRIATION OF AT LEAST $50,000,000 TO THE FUND. 20 (2) IN FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUDE IN THE 21 ANNUAL BUDGET BILL A N APPROPRIATION OF AT LEAST $20,000,000 TO THE FUND. 22 (3) IN EACH OF FISCAL YEARS 2025 AND 2026, THE GOVERNOR SHALL 23 INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF AT LEAST 24 $10,000,000 TO THE FUND. 25 5–322. 26 (a) In this section, “Fund” means the Healthy School Facility Fund. 27 (b) There is a Healthy School Facility Fund. 28 (j) (1) (i) In each of fiscal years 2020 through 2022, the Governor shall 29 appropriate at least $30,000,000 to the Fund. 30 HOUSE BILL 1290 11 (ii) In each of fiscal years 2023 [and 2024] THROUGH 2026, the 1 Governor shall appropriate at least $40,000,000 to the Fund. 2 (iii) For each of fiscal years 2021 through [2024] 2026, 50% of the 3 funds appropriated under subparagraphs (i) and (ii) of this paragraph shall be awarded to 4 public schools in Baltimore City. 5 5–326. 6 (a) In this section, “Fund” means the Public School Facilities Priority Fund. 7 (b) There is a Public School Facilities Priority Fund. 8 (i) [(1) In fiscal years 2025 and 2026, the Governor shall appropriate in the 9 annual State operating or capital budget bill at least $40,000,000 to the Fund. 10 (2)] In fiscal year 2027 and each fiscal year thereafter, the Governor shall 11 appropriate in the annual State operating or capital budget bill at least $80,000,000 to the 12 Fund. 13 5–327. 14 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 15 INDICATED. 16 (2) “BASELINE TOTAL COST O F OWNERSHIP ” MEANS THE TYPICAL 17 TOTAL COST OF OWNERS HIP OF A NEW SCHOOL BUILDING OR A SCHOOL FACILITY 18 RENEWAL, AS CALCULATED BY THE INTERAGENCY COMMISSION. 19 (3) “ESTIMATED TOTAL COST OF OWNERSHIP ” MEANS THE TOTAL 20 COST OF OWNERSHIP OF A NEW SCHOOL BUILDIN G OR A SCHOOL FACILI TY RENEWAL 21 AND THE CONCOMITANT ANALYSIS AS ESTIMATE D BY A LOCAL EDUCATI ON AGENCY 22 BEFORE THE CONSTRUCTI ON OF A NEW SCHOOL B UILDING OR A SCHOOL FACILITY 23 RENEWAL BEGINS . 24 (4) (I) “PROJECTED ACTUAL TOTA L COST OF OWNERSHIP AS 25 CONSTRUCTED ” MEANS THE TOTAL COST OF OWNERSHIP OF A NE W SCHOOL 26 BUILDING OR A SCHOOL FACILITY RENEWAL AND THE CONCO MITANT ANALYSIS AS 27 CALCULATED BY A LOCA L EDUCATION AGENCY A FTER THE CONSTRUCTIO N OF THE 28 NEW SCHOOL BUILDING OR THE SCHOOL FACILI TY RENEWAL IS COMPLE TE. 29 (II) “PROJECTED ACTUAL TOTA L COST OF OWNERSHIP AS 30 CONSTRUCTED ” INCLUDES THE SUM OF: 31 12 HOUSE BILL 1290 1. THE ACTUAL COSTS OF CONSTRUC TION AND 1 OPERATION OF THE NEW SCHOOL BUILDING OR T HE SCHOOL FACILITY R ENEWAL AS 2 OF THE DATE OF THE C ALCULATION; AND 3 2. AN ESTIMATION OF FUTU RE COSTS. 4 (5) “SCHOOL FACILITY RENEW AL” MEANS A CAPITAL IMPR OVEMENT 5 PROJECT FOR AN EXISTING SCHOOL THAT , ON COMPLETION : 6 (I) WILL REDUCE THE SCHOO L’S FACILITY CONDITION INDEX, 7 AS DEFINED IN § 5–310 OF THIS SUBTITLE, TO 0.15 OR LOWER; AND 8 (II) RESULTS IN A LIKE –NEW OPERATIONAL COND ITION FOR 9 THE SCHOOL. 10 (6) “STATE SHARE PERCENTAG E” MEANS THE PERCENTAGE OF 11 ELIGIBLE COSTS , AS DEFINED IN REGULATIONS ADOPTED IN ACCORDANCE WITH § 12 5–303 OF THIS SUBTITLE, FOR THE CONSTRUCTION OF A NEW SCHOOL BUIL DING OR 13 A SCHOOL FACILITY RE NEWAL PAID FOR BY TH E STATE. 14 (B) IF A PROJECT FOR THE CONSTRUCT ION OF A NEW SCHOOL BUILDING OR 15 A SCHOOL FACILITY RENEWAL HAS AN ESTIMATED TOT AL COST OF OWNERSHIP THAT 16 IS AT LEAST 15% LESS THAN THE BASELI NE TOTAL COST OF OWN ERSHIP, THE 17 COUNTY SHALL RECEIVE A 5% INCREASE IN THE STATE SHARE PERCENTAGE FOR 18 THAT PROJECT. 19 (C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF A PROJECT 20 HAS A PROJECTED ACTUAL TOT AL COST OF OWNERSHIP AS CONSTRUCTED THAT IS 21 NOT AT LEAST 15% LESS THAN THE BASELI NE TOTAL COST OF OWN ERSHIP, THE 22 COUNTY THAT RECEIVED A 5% INCREASE IN THE STATE SHARE PERCENTAG E FOR 23 THAT PROJECT SHALL REPAY THAT AMOUNT TO THE INTERAGENCY COMMISSION. 24 (2) THE INTERAGENCY COMMISSION SHALL ESTA BLISH A PROCESS 25 FOR A COUNTY TO REPA Y THE INTERAGENCY COMMISSION THE AMOUNT OF THE 5% 26 INCREASE IN THE STATE SHARE PERCENTAG E OF A PROJECT THAT MET THE 27 REQUIREMENTS UNDER S UBSECTION (B) OF THIS SECTION , IF APPROXIMATELY 12 28 TO 17 MONTHS AFTER THE DAT E ON WHICH CONSTRUCT ION IS COMPLETE AND THE 29 LOCAL EDUCATION AGEN CY BEGINS USING THE BUILDING OR RENEWAL FOR ITS 30 INTENDED PURPOSE , THE PROJECTED ACTUAL TOTAL COST OF OWNERS HIP AS 31 CONSTRUCTED IS NOT AT LEAST 15% LESS THAN THE BASELINE TOTAL COST OF 32 OWNERSHIP. 33 (D) THE INTERAGENCY COMMISSION, IN COORDINATION WITH THE 34 HOUSE BILL 1290 13 DEPARTMENT , SHALL DEVELOP LIFE C YCLE COST ANALYSIS S TANDARDS. 1 (E) THE INTERAGENCY COMMISSION SHALL ADOP T REGULATIONS TO 2 CARRY OUT THIS SECTI ON. 3 Article – Economic Development 4 10–650. 5 (c) (1) Except as otherwise provided in paragraphs (2) [and (3)] THROUGH (4) 6 of this subsection, the allocation of bond proceeds authorized in § 10–628 of this subtitle 7 represents the State share of eligible public school construction or capital improvement 8 costs as established by regulation in accordance with § 5–303 of the Education Article, 9 which shall include architectural, engineering, consulting, and other planning costs as 10 eligible costs. 11 (2) For a county that receives the minimum State share of eligible school 12 construction costs and has advanced construction funding for projects in the Public School 13 Construction Program that the Interagency Commission on School Construction has 14 approved for planning, the State share of eligible costs for the allocation of bond proceeds 15 authorized in § 10–628 of this subtitle shall include 150% of the applicable gross area 16 baseline in gross square foot per student for each project. 17 (3) In Baltimore City, the bond proceeds authorized under § 10–628 of this 18 subtitle may be used for furniture, fixtures, equipment, design, and the staff necessary to 19 manage the school construction projects. 20 (4) A COUNTY MAY USE A LOA N FROM THE SCHOOL CONSTRUCTION 21 REVOLVING LOAN FUND ESTABLISHED UNDER § 5–315 OF THE EDUCATION 22 ARTICLE TO REPRESENT THE STATE OR LOCAL SHARE OF ELIGIBLE PUBLIC S CHOOL 23 CONSTRUCTIO N OR CAPITAL IMPROVE MENT COSTS. 24 Article – State Finance and Procurement 25 6–226. 26 (a) (2) (i) Notwithstanding any other provision of law, and unless 27 inconsistent with a federal law, grant agreement, or other federal requirement or with the 28 terms of a gift or settlement agreement, net interest on all State money allocated by the 29 State Treasurer under this section to special funds or accounts, and otherwise entitled to 30 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 31 Fund of the State. 32 (ii) The provisions of subparagraph (i) of this paragraph do not apply 33 to the following funds: 34 14 HOUSE BILL 1290 101. the [Local Share of School Construction Costs Revolving 1 Loan] SCHOOL CONSTRUCTION REVOLVING LOAN Fund; 2 SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 3 Assembly that a new Workgroup on the Assessment and Funding of School Facilities be 4 formed not later than July 2024 to determine how the relative condition of public school 5 facilities within the educational facilities sufficiency standards and the facility condition 6 index should be prioritized, taking into account local priorities and in consultation with 7 local jurisdictions prior to the Public School Facilities Priority Fund being funded for fiscal 8 year 2027. 9 SECTION 3. AND BE IT FURTHER ENACTED, That it is the intent of the General 10 Assembly that: 11 (1) beginning in fiscal year 2023, within the current debt affordability 12 guidelines, the State should provide at least $400,000,000 each year for public school 13 construction; and 14 (2) the annual goal established under item (1) of this section should be 15 recalculated prior to the Public School Facilities Priority Fund being funded. 16 SECTION 4. AND BE IT FURTHER ENACTED, That the Inter agency Commission 17 on School Construction shall update the State and local cost–share formula for fiscal years 18 2025 and 2026 to align with the changes Chapter 36 of the Acts of the General Assembly of 19 2021 made to the Foundation Program and the Guaranteed Tax Base Program. 20 SECTION 5. AND BE IT FURTHER ENACTED, That, on or before October 1, 2023, 21 the Interagency Commission on School Construction shall update the baseline gross square 22 footage per student for the Gross Area Baselines calculation to align with the standards 23 and requirements in Chapter 36 of the Acts of the General Assembly of 2021, including: 24 (1) instructional space for English–language learners; 25 (2) community schools and schools eligible for Concentration of Poverty 26 grants; 27 (3) collaborative planning spaces for teachers, taking into consideration 28 that there will be more teachers in schools as additional collaborative time during the 29 school day is phased in; 30 (4) break–out space for more one–on–one and small group instruction; and 31 (5) career and technical education pathways. 32 SECTION 6. AND BE IT FURTHER ENACTED, That the Interagency Commission 33 on School Construction and the Maryland Department of Health shall determine the 34 minimum equipment needed in each school for food preparation, to be used by the 35 HOUSE BILL 1290 15 Interagency Commission on School Construction for surveys of school buildings under § 1 5–310(b) of the Education Article, as enacted by Section 1 of this Act. 2 SECTION 7. AND BE IT FURTHER ENACTED, That it is the intent of the General 3 Assembly for the Interagency Commission on School Construction to work with the 4 Department of Legislative Services to verify survey data completed under § 5–310 of the 5 Education Article, as enacted by Section 1 of this Act, through at least July 1, 2025. 6 SECTION 8. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7 1, 2022. 8