Maryland 2022 2022 Regular Session

Maryland House Bill HB1290 Introduced / Bill

Filed 02/14/2022

                     
 
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