EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb1290* HOUSE BILL 1290 F1 2lr0385 By: Delegate McIntosh Introduced and read first time: February 11, 2022 Assigned to: Appropriations Committee Report: Favorable with amendments House action: Adopted Read second time: March 11, 2022 CHAPTER ______ 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; requiring 13 certain rights of the Interagency Commission to be specified in a certain 14 memorandum of understanding; requiring local education agencies to take certain 15 actions if a certain inspection requires the closure of a school building; renaming the 16 Local Share of School Construction Costs Revolving Loan Fund to be the School 17 Construction Revolving Loan Fund; altering the purpose and eligibility criteria of 18 the School Construction Revolving Loan Fund; providing for the repayment of loans 19 to the School Construction Revolving Loan Fund; altering and extending certain 20 mandated appropriations to the School Construction Revolving Loan Fund, the 21 Healthy School Facility Fund, and the Public School Facilities Priority Fund; 22 renaming the Public School Facilities Priority Fund to be the Nancy K. Kopp Public 23 School Facilities Priority Fund; authorizing a county to use a loan from the School 24 Construction Revolving Loan Fund for a certain purpose; altering the amount of 25 2 HOUSE BILL 1290 certain required deposits into the Baltimore City Public School Construction 1 Financing Fund; altering the authorized uses of money in the Education Trust Fund; 2 repealing certain provisions of law that repealed the provisions of the Aging Schools 3 Program and the School Safety Grant Program; declaring the intent of the General 4 Assembly regarding funding for public school construction; requiring the 5 Interagency Commission and the Maryland Department of Health to make a certain 6 determination about food preparation equipment used in schools; and generally 7 relating to the funding and administration of public school construction. 8 BY repealing and reenacting, with amendments, 9 Article – Education 10 Section 4–126(e)(3)(ii)3., 4–126.2, 5–303(d)(3) and (5) and (k), 5–310(b), (f), and (g), 11 5–315, 5–322(j)(1), and 5–326(i) 5–326(a), (b), and (i) 12 Annotated Code of Maryland 13 (2018 Replacement Volume and 2021 Supplement) 14 BY repealing and reenacting, without amendments, 15 Article – Education 16 Section 5–303(d)(4), 5–310(a), 5–322(a) and (b), and 5–326(a) and (b) 5–317, and 17 5–322(a) and (b) 18 Annotated Code of Maryland 19 (2018 Replacement Volume and 2021 Supplement) 20 BY adding to 21 Article – Education 22 Section 5–303(l) and 5–327 23 Annotated Code of Maryland 24 (2018 Replacement Volume and 2021 Supplement) 25 BY repealing and reenacting, without amendments, 26 Article – Education 27 Section 5–324 28 Annotated Code of Maryland 29 (2018 Replacement Volume and 2021 Supplement) 30 (As enacted by Chapter 20 of the Acts of the General Assembly of 2020) 31 BY repealing and reenacting, with amendments, 32 Article – Economic Development 33 Section 10–645(g)(2) and (h)(2), 10–649(g), and 10–650(c) 34 Annotated Code of Maryland 35 (2018 Replacement Volume and 2021 Supplement) 36 BY repealing and reenacting, without amendments, 37 Article – State Finance and Procurement 38 Section 6–226(a)(2)(i) 39 Annotated Code of Maryland 40 (2021 Replacement Volume) 41 HOUSE BILL 1290 3 BY repealing and reenacting, with amendments, 1 Article – State Finance and Procurement 2 Section 6–226(a)(2)(ii)101. 6–226(a)(2)(ii)101. and 125. 3 Annotated Code of Maryland 4 (2021 Replacement Volume) 5 BY repealing and reenacting, without amendments, 6 Article – State Government 7 Section 9–1A–30(a) through (c) 8 Annotated Code of Maryland 9 (2021 Replacement Volume) 10 BY repealing and reenacting, with amendments, 11 Article – State Government 12 Section 9–1A–30(d) 13 Annotated Code of Maryland 14 (2021 Replacement Volume) 15 BY repealing 16 Chapter 20 of the Acts of the General Assembly of 2020 17 Section 8 and 11 18 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19 That the Laws of Maryland read as follows: 20 Article – Education 21 4–126. 22 (e) (3) (ii) In Prince George’s County, projects that use alternative 23 financing methods under this section and receive State funding for a yearly availability 24 payment: 25 3. If the project receives State funding for a yearly 26 availability payment from the Supplemental Public School Construction Financing Fund 27 under § 10–658 of the Economic Development Article, the project shall comply with a 28 four–party memorandum of understanding entered into and signed by the Prince George’s 29 County Board, Prince George’s County, the Maryland Stadium Authority, and the 30 Interagency Commission on School Construction that: 31 A. [Specifies] SUBJECT TO ITEM G OF THIS ITEM , 32 SPECIFIES the roles, rights, terms, and responsibilities of each party with respect to school 33 projects undertaken with a private or public entity using alternative financing methods, 34 including any amounts the parties are required to deposit into the Prince George’s County 35 Public–Private Partnership Fund established under § 4–126.2 of this subtitle; 36 4 HOUSE BILL 1290 B. Specifies that § 2–203(f) and Title 5, Subtitle 3 of this 1 article and regulations governing the Public School Construction Program are not 2 applicable to projects using alternative financing methods; 3 C. Requires the Prince George’s County Board to submit 4 projects to the Interagency Commission on School Construction for review before 5 commencement of the project; 6 D. Specifies the time frames in which the Interagency 7 Commission on School Construction shall complete its review of projects; 8 E. Requires the Prince George’s County Board to submit 9 annual reports to Prince George’s County, the Maryland Stadium Authority, and the 10 Interagency Commission on School Construction during the term of the alternative 11 financing method contract with the public or private entity; [and] 12 F. Specifies the terms under which each party will comply 13 with the provisions of §§ 4–126.1 and 4–126.2 of this subtitle; 14 G. SPECIFIES THE ROLES O F THE INTERAGENCY 15 COMMISSION ON SCHOOL CONSTRUCTION , INCLUDING THE INTERAGENCY 16 COMMISSION’S RIGHTS RELATED TO : 17 I. APPROVAL OF THE PROJECT AGREEMENT; 18 II. APPROVAL OF SITE –SPECIFIC EDUCATIONAL 19 SPECIFICATIONS ; 20 III. APPROVAL OF FINAL SIT E SELECTIONS; AND 21 IV. THE ROLE OF THE GOVER NING BODY OF THE 22 PROGRAM . 23 4–126.2. 24 (a) In this section, “Fund” means the Prince George’s County Public–Private 25 Partnership Fund. 26 (b) There is a Prince George’s County Public–Private Partnership Fund. 27 (c) The purpose of the Fund is to provide funds TO PRINCE GEORGE’S COUNTY 28 FOR PRINCE GEORGE’S COUNTY to pay a public or private entity for the availability 29 payment due under the Prince George’s County public–private partnership agreement 30 entered into in accordance with § 4–126.1 of this subtitle. 31 HOUSE BILL 1290 5 (d) The Interagency Commission on School Construction shall administer the 1 Fund as described in the four–party memorandum of understanding entered into under § 2 4–126(e)(3)(ii) of this subtitle. 3 (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 4 the State Finance and Procurement Article. 5 (2) The State Treasurer shall hold the Fund separately, and the 6 Comptroller shall account for the Fund. 7 (f) The Fund consists of: 8 (1) Money deposited into the Fund by Prince George’s County, the Prince 9 George’s County Board, and the Maryland Stadium Authority; 10 (2) Money deposited into the Fund by the State; 11 (3) Any investment earnings of the Fund; and 12 (4) Any other money from any other source accepted for the benefit of the 13 Fund. 14 (g) (1) Except as provided in paragraph (2) of this subsection, the Fund may 15 be used only to provide funding TO PRINCE GEORGE’S COUNTY for alternative financing 16 methods under § 4–126 of this subtitle in Prince George’s County. 17 (2) If Prince George’s County receives State funding for an availability 18 payment under § 4–126.1 of this subtitle, the funding received under § 4–126.1 of this 19 subtitle may be used only to pay an availability payment to a private entity under the 20 public–private partnership agreement entered into and approved in accordance with § 21 4–126.1 of this subtitle. 22 (h) Any appropriation to the Fund shall be used to supplement, but not supplant, 23 money appropriated to Prince George’s County for public school construction under the 24 Public School Construction Program established in Title 5, Subtitle 3 of this article. 25 (i) (1) The State Treasurer shall invest the money of the Fund in the same 26 manner as other State money may be invested. 27 (2) Any interest earnings of the Fund shall be credited to the Fund. 28 (j) If a memorandum of understanding is entered into under § 4–126 of this 29 subtitle and State funding is provided for an availability payment, the Prince George’s 30 County Board and Prince George’s County shall deposit into the Fund the amounts 31 required under the memorandum of understanding. 32 5–303. 33 6 HOUSE BILL 1290 (d) (3) The regulations adopted by the Interagency Commission shall contain 1 provisions: 2 (i) Subject to subsection (k) of this section, establishing a State and 3 local cost–share formula for each county that identifies the factors used in establishing the 4 formulas and the actual State and local cost–share percentages by the formula for each 5 county; 6 (ii) Requiring local education agencies to adopt educational facilities 7 master plans and annual capital improvement programs; 8 (iii) [Providing] SUBJECT TO SUBSECTION (L) OF THIS SECTION, 9 PROVIDING a method for establishing a maximum State construction allocation for each 10 project approved for State funding; 11 (iv) Referencing the policies stated in § 5–7B–07 of the State Finance 12 and Procurement Article; 13 (v) Requiring local school systems to adopt procedures consistent 14 with the minority business enterprise policies of the State as required under the Code of 15 Maryland Regulations; 16 (vi) Establishing a process for appeal of Interagency Commission 17 decisions, INCLUDING AN APPEAL PROCESS SPECIFICALLY FOR APPROVED 18 ENROLLMENT PROJECTS PROJECTIONS FOR INDIVIDUAL PROJE CTS TO THE FULL 19 INTERAGENCY COMMISSION; 20 (vii) Requiring local education agencies to adopt, implement, and 21 periodically update comprehensive maintenance plans and preventative maintenance 22 plans; 23 (viii) Authorizing the Interagency Commission to withhold State 24 public school construction funds from a local education agency that fails to comply with the 25 requirements of item (vii) of this paragraph; 26 (ix) Requiring the development and submission of long–range plans, 27 including a requirement for the annual submission of a 10–Year Educational Facilities 28 Master Plan; and 29 (x) Requiring the submission of an annual Capital Improvement 30 Program, which may only be required to include plans for specific projects and requests for 31 planning and construction projects for the upcoming fiscal year. 32 (4) In adopting any of these requirements, the State Board and the 33 Interagency Commission shall provide for the maximum exercise of initiative by school 34 personnel in each county to ensure that the school buildings and improvements meet both 35 HOUSE BILL 1290 7 the needs of the local communities and the rules and regulations necessary to ensure the 1 proper operation of this section and the prudent expenditure of State funds. 2 (5) The Interagency Commission shall [update]: 3 (I) UPDATE the regulations required under paragraph (3)(i) of this 4 subsection every 2 years; AND 5 (II) WHEN UPDATING THE REG ULATIONS IN ACCORDAN CE WITH 6 ITEM (I) OF THIS PARAGRAPH , LIMIT THE PERCENTAGE DECREASE IN THE STATE 7 SHARE OF SCHOOL CONS TRUCTION COSTS TO NO T MORE THAN 5% FOR EACH 8 COUNTY. 9 (k) (1) A county is eligible for an adjustment to the local cost–share for school 10 construction projects under paragraph (2) of this subsection if: 11 (i) A county’s median household income is in the bottom quartile in 12 the State; and 13 (ii) The State and local cost–share formula for the county is 50% 14 State and 50% local. 15 (2) (i) The local cost–share of a school construction project in a county 16 that is eligible under paragraph (1) of this subsection shall be reduced to equal the local 17 cost–share of the adjacent county that is less than 50% but closest to 50%. 18 (ii) The State cost–share of a school construction project in the 19 eligible county shall be increased by a percentage that is equal to the reduction under 20 subparagraph (i) of this paragraph. 21 (3) A COUNTY SHALL RECEIVE : 22 (I) A 10% 10 PERCENTAGE POINT INCREASE IN THE STATE 23 SHARE OF A SCHOOL CO NSTRUCTION PROJECT I F THE PROPOSED SCHOO L 24 CONSTRUCTION PROJECT , WHEN A LOCAL SCHOOL SYSTEM SUBMITS A PRO JECT 25 FOR APPROVAL TO THE INTERAGENCY COMMISSION, IS AT A SCHOOL WITH A 26 CONCENTRATION OF POV ERTY LEVEL, AS DEFINED IN § 5–223 OF THIS TITLE, OF 27 80% OR GREATER; 28 (II) A 5% 5 PERCENTAGE POINT INCREASE IN THE STATE SHARE 29 OF A SCHOOL CONSTRUC TION PROJECT IF THE PROPOSED SCHOOL CONS TRUCTION 30 PROJECT, WHEN A LOCAL SCHOOL SYSTEM SUBMITS A PRO JECT FOR APPROVAL TO 31 THE INTERAGENCY COMMISSION, IS AT A SCHOOL WITH A CONCENTRATION OF 32 POVERTY LEVEL , AS DEFINED IN § 5–223 OF THIS TITLE, OF LESS THAN 80% BUT 33 GREATER THAN 55%; 34 8 HOUSE BILL 1290 (III) A 5% 5 PERCENTAGE POINT INCREASE IN THE STATE SHARE 1 OF A SCHOOL CONSTRUC TION PROJECT IF THE PROPOS ED SCHOOL CONSTRUCTI ON 2 PROJECT IS AT A SCHO OL THAT, IN THE MOST RECENT S CHOOL MAINTENANCE 3 EFFECTIVENESS ASSESS MENT BY THE INTERAGENCY COMMISSION, RECEIVED AN 4 ASSESSMENT RATING OF : 5 1. GOOD; 6 2. SUPERIOR; OR 7 3. ADEQUATE AND THE SCHOOL ’S CURRENT SCHOOL 8 FACILITY ASSESSMENT PERCENT OF EXPECTED USEFUL LIFE IS AT LE AST 100% 9 120%; AND 10 (IV) A 5% 5 PERCENTAGE POINT INCREASE IN THE STATE SHARE 11 OF A SCHOOL CONSTRUC TION PROJECT IF THE PROPOSED PROJECT IS TO BUILD A 12 NET–ZERO SCHOOL . 13 (L) THE INTERAGENCY COMMISSION MAY MAKE A N ELIGIBLE 14 ENROLLMENT DEDUCTION FOR AN ADJACENT SCHO OL WHEN CALCULATING THE 15 MAXIMUM STATE CONSTRUCTION AL LOCATION FOR A PROJE CT APPROVED FOR 16 STATE FUNDING UNDER S UBSECTION (D)(3)(II) OF THIS SECTION ONLY IF THE SUM 17 OF AVAILABLE SEAT COUNT IN AN ADJACENT SCHOOL ALL ADJACENT SCHOOLS IS 18 15% OR MORE OF THE ADJACENT PROJECT SCHOOL’S ENROLLMENT . 19 5–310. 20 (a) (1) In this section the following words have the meanings indicated. 21 (2) “Educational facilities sufficiency standards” means a uniform set of 22 criteria and measures for evaluating the physical attributes and educational suitability of 23 public elementary and secondary school facilities in the State. 24 (3) “Facility condition index” means a calculation to determine the relative 25 physical condition of public school facilities by dividing the total repair cost of a facility by 26 the total replacement cost of a facility. 27 (b) (1) (I) Each fiscal year, the Interagency Commission shall survey the 28 condition of school buildings identified by the Department. 29 (II) THE INTERAGENCY COMMISSION SHALL INCL UDE IN THE 30 INSPECTIONS OF INDIV IDUAL SCHOOL BUILDIN GS: 31 HOUSE BILL 1290 9 1. A PROCESS FOR A LOCAL EDUCATION AGENCY TO 1 REPORT ANY ADDITIONA L INFORMATION RELEVA NT TO THE INSPECTION , 2 INCLUDING A PLACE IN THE MASTER FACILITY ASSET LIBRARY SYSTEM FOR THE 3 LOCAL EDUCATION AGEN CY TO: 4 A. REPORT EACH YEAR TO T HE INTERAGENCY 5 COMMISSION ON ANY DEF ICIENCIES IN A SCHOO L BUILDING, EVEN IF THE SCHOOL 6 BUILDING WAS NOT INS PECTED IN ACCORDANCE WITH PARAGRAPH (2) OF THIS 7 SUBSECTION IN THE PR IOR YEAR; 8 B. IDENTIFY SPACES IN A SCHOOL BUILDING LIKE LY TO 9 HAVE BEEN PAINTED WI TH LEAD PAINT; AND 10 C. REPORT CERTIFICATION OF THE ASBESTOS HAZARD 11 EMERGENCY RESPONSE ACT PLAN FOR THE SPAC E; AND 12 2. A PROCESS TO INCORPORA TE MAINTENANCE DATA 13 FOR INDIVIDUAL SCHOO L BUILDINGS. 14 (2) (I) The Interagency Commission shall conduct the inspections of 15 individual school buildings that are necessary to complete the survey required in paragraph 16 (1) of this subsection. 17 (II) THE INSPECTIONS COMPL ETED UNDER PARAGRAPH (1) OF 18 THIS SUBSECTION SHAL L INCLUDE AN INSPECTIO N OF INCLUDE THE FOLLOWING 19 ITEMS FOR EACH SCHOO L BUILDING: 20 1. TEMPERATURE ; 21 2. HUMIDITY; 22 3. CARBON DIOXIDE LEVEL ; 23 4. ACOUSTIC LEVE LS; 24 5. LEAD PAINT; 25 6. ASBESTOS; 26 7. KITCHEN SANITARY EQUI PMENT; 27 8. LIGHTING; 28 9. EMERGENCY COMMUNICATI ON SYSTEM , WITH 29 RESPECT TO REMAINING USEFUL LIFE; 30 10 HOUSE BILL 1290 10. HEALTH ROOM ATTRIBUTE S; 1 11. SAFETY EQUIPMENT IN E ACH LABORATORY SPACE; 2 AND 3 12. THE FUNCTIONALITY OF : 4 A. HEATING, VENTILATION, AND AIR–CONDITIONING 5 BUILDING SYSTEMS ; 6 B. LIFE SAFETY BUILDING SYSTEMS; 7 C. ROOFS; AND 8 D. ANY ADDITIONAL CRITIC AL BUILDING SYSTEMS 9 IDENTIFIED BY THE INTERAGENCY COMMISSION. 10 (III) DURING AN INSPECTION , IF AN ITEM UNDER 11 SUBPARAGRAPH (II)1 THROUGH 6 OF THIS PARAGRAPH RI SES TO SUCH A SEVERE 12 LEVEL THAT REQUIRES THE SCHOOL TO BE CLO SED, THE LOCAL EDUCATION 13 AGENCY SHALL SUBMIT A PLAN TO THE INTERAGENCY COMMISSION ON HOW TO 14 ADDRESS THE ISSUE AND THE INTERAGENCY COMMISSION SHALL WORK TO 15 PRIORITIZE FUNDING T O ADDRESS THE ISSUE . 16 (3) The Interagency Commission shall report to the Governor and the 17 General Assembly, on or before October 1 of each year, in accordance with § 2–1257 of the 18 State Government Article, on the results of the survey for the prior fiscal year. 19 (f) (1) Following the completion of the initial statewide facilities assessment, 20 the Interagency Commission shall develop standards and procedures to comprehensively 21 update the facilities assessment such that facility assessment data is not older than 4 years. 22 (2) Local education agencies shall: 23 (i) Cooperate with the Interagency Commission to update the 24 facility assessment; and 25 (ii) Contribute data as requested to update the assessment. 26 (3) (i) The Interagency Commission shall enter the facility assessment 27 data into an integrated data system, which shall be known as the Integrated Master 28 Facility Asset Library. 29 HOUSE BILL 1290 11 (ii) The Interagency Commission shall manage the Integrated 1 Master Facility Asset Library and shall provide access to the Library for all local education 2 agencies using a cloud–based system. 3 (4) THE INTEGRATED MASTER FACILITY ASSET LIBRARY SHALL 4 INCLUDE PREVENTIVE M AINTENANCE SCHEDULES ACCESSI BLE TO EACH LOCAL 5 EDUCATION AGENCY . 6 (g) (1) (I) [After completion of the initial facility assessment] EXCEPT AS 7 PROVIDED IN PARAGRAP H (2) OF THIS SUBSECTION , the Interagency Commission 8 [shall share the data results with the Workgroup on the Assessment and Funding of School 9 Facilities and, with the Workgroup, shall consider: 10 (i) How the relative condition of public school facilities within the 11 educational facilities sufficiency standards and the facility condition index should be 12 prioritized, taking into account local priorities and in consultation with local jurisdictions; 13 and 14 (ii) If determined to be appropriate, use of the assessment results in 15 funding decisions] MAY NOT USE ANY FACI LITY ASSESSMENT DATA UNTIL THE 16 INTERAGENCY COMMISSION ESTABLISHE S THE INTEGRATED MASTER FACILITY 17 ASSET LIBRARY. 18 (II) AFTER THE INTERAGENCY COMMISSION HAS ESTABL ISHED 19 THE INTEGRATED MASTER FACILITY ASSET LIBRARY, AND ON OR AFTER MAY 1, 20 2026, THE INTERAGENCY COMMISSION SHALL ADOP T REGULATIONS ESTA BLISHING 21 THE USE OF THE FACIL ITY ASSESSMENT RESUL TS IN ANNUAL SCHOOL 22 CONSTRUCTION FUNDING DECISIONS BEGINNING NOT SOONER THAN FISC AL YEAR 23 2027. 24 (2) [During the consideration process under paragraph (1)(i) of this 25 subsection, the Interagency Commission and the Workgroup shall: 26 (i) Evaluate each school’s facilities using the replacement value of a 27 modern system; and 28 (ii) Prioritize building systems that are furthest beyond the useful 29 life of the system] BEFORE THE INTEGRATED MASTER FACILITY ASSET LIBRARY IS 30 ESTABLISHED, THE INTERAGENCY COMMISSION MAY USE FA CILITY ASSESSMENT 31 DATA TO: 32 (I) PROVIDE CONTEXT TO PR OGRAMS THE INTERAGENCY 33 COMMISSION ADMINISTER S; 34 (II) WORK WITH LOCAL EDUCA TION AGENCIES; 35 12 HOUSE BILL 1290 (III) FULFILL LEGISLATIVE R EQUESTS; 1 (IV) COMPLETE ANY INTERAGENCY COMMISSION ANALYSIS O R 2 REPORT; AND 3 (V) ASSIST WITH ANY EXTER NAL REPORTS . 4 [(3) Based on the recommendations of the Workgroup on the Assessment 5 and Funding of School Facilities, and not before May 1, 2022, for use in funding decisions 6 beginning no sooner than fiscal year 2023, the Interagency Commission shall adopt 7 regulations establishing the use of the facility assessment results in annual school 8 construction funding decisions.] 9 5–315. 10 (a) In this section, “Fund” means the [Local Share of School Construction Costs 11 Revolving Loan] SCHOOL CONSTRUCTION REVOLVING LOAN Fund. 12 (b) There is a [Local Share of School Construction Costs Revolving Loan] 13 SCHOOL CONSTRUCTION REVOLVING LOAN Fund. 14 (c) The purpose of the Fund is to provide loans to local governments to forward 15 fund the STATE OR local share of school construction costs for local education agencies that 16 rely on the STATE OR local share to be fully funded in order to complete a project. 17 (d) The Interagency Commission shall administer the Fund. 18 (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 19 the State Finance and Procurement Article that shall be available in perpetuity for the 20 purpose of providing loans in accordance with the provisions of this section. 21 (2) The State Treasurer shall hold the Fund separately, and the 22 Comptroller shall account for the Fund. 23 (f) The Fund consists of: 24 (1) Money appropriated in the State budget to the Fund; 25 (2) Any interest earnings of the Fund; 26 (3) Repayments of principal and interest from loans made from the Fund; 27 and 28 (4) Any other money from any other source accepted for the benefit of the 29 Fund. 30 HOUSE BILL 1290 13 (g) The Fund may be used only to provide low– or no–interest loans to local 1 governments. 2 (h) (1) The State Treasurer shall invest the money of the Fund in the same 3 manner as other State money may be invested. 4 (2) Any interest earnings of the Fund shall be credited to the Fund. 5 (i) Money expended from the Fund is supplemental to and is not intended to take 6 the place of funding that otherwise would be appropriated to local governments for school 7 construction. 8 (j) (1) Subject to paragraph (2) of this subsection, the Interagency 9 Commission shall establish application procedures and eligibility criteria for loans from the 10 Fund. 11 (2) The eligibility criteria shall include that a local [government is] 12 SCHOOL SYSTEM : 13 (i) [In] IS IN need of a loan to forward fund the STATE OR local 14 share of school construction costs in order to complete a project; [and] 15 (ii) [Able] IS ABLE to demonstrate the ability to repay the loan if 16 required at a later date; AND 17 (III) HAS RECEIVED PLANNING APPROVAL FOR THE PRO JECT 18 FROM THE INTERAGENCY COMMISSION. 19 (3) THE INTERAGENCY COMMISSION SHALL GIVE PRIORITY IN 20 AWARDING LOANS FROM THE FUND TO COUNTIES THAT HAVE: 21 (I) NOT ADVANCED CONSTRUC TION FUNDING FOR PRO JECTS 22 IN THE PUBLIC SCHOOL CONSTRUCTION PROGRAM THAT THE INTERAGENCY 23 COMMISSION HAS APPROVED FOR PLA NNING; AND 24 (II) LIMITED DEBT CAPACITY . 25 (K) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 26 COUNTY SHALL REPAY A LOAN FROM THE FUND NOT LESS THAN 5 YEARS AFTER 27 RECEIVING THE LOAN F ROM THE FUND. 28 (2) THE INTERAGENCY COMMISSION MAY ESTABL ISH A PROCEDURE 29 FOR A WAIVER FROM TH E REQUIREMENT UNDER PARAGRAPH (1) OF THIS 30 SUBSECTION. 31 14 HOUSE BILL 1290 (L) (1) IN FISCAL YEAR 2023, THE GOVERNOR SHALL INCLUD E IN THE 1 ANNUAL BUDGET BILL A N APPROPRIATION OF A T LEAST $50,000,000 $40,000,000 2 TO THE FUND. 3 (2) IN FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUD E IN THE 4 ANNUAL BUDGET BILL A N APPROPRIATION OF A T LEAST $20,000,000 TO THE FUND. 5 (3) IN EACH OF FISCAL YEA RS 2025 AND 2026, THE GOVERNOR SHALL 6 INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF AT LEAST 7 $10,000,000 TO THE FUND. 8 5–317. 9 (a) In this section, “Program” means the School Safety Grant Program. 10 (b) (1) There is a School Safety Grant Program. 11 (2) The purpose of the Program is to provide grants to county boards for 12 school security improvements, including: 13 (i) Secure and lockable classroom doors for each classroom in the 14 school; 15 (ii) An area of safe refuge in each classroom in the school; and 16 (iii) Surveillance and other security technology for school monitoring 17 purposes. 18 (c) The Program shall be implemented and administered by the Interagency 19 Commission, in consultation with the Maryland Center for School Safety. 20 (d) The Interagency Commission shall: 21 (1) Provide grants to county boards for public school se curity 22 improvements; 23 (2) Develop a procedure for a county board to apply for a grant under the 24 Program; and 25 (3) Develop eligibility requirements for a county board to receive a grant 26 under the Program. 27 (e) In addition to the annual amount otherwise provided in the capital 28 improvement program of the Public School Construction Program, the Governor shall 29 HOUSE BILL 1290 15 provide an additional $10,000,000 in the annual operating or capital budget bill that may 1 be used only to award grants under the Program. 2 (f) The State funding provided under the Program is supplemental to and is not 3 intended to take the place of funding that would otherwise be appropriated for public school 4 construction purposes to a county board from any other source. 5 (g) The Interagency Commission shall adopt regulations necessary to implement 6 this section. 7 5–322. 8 (a) In this section, “Fund” means the Healthy School Facility Fund. 9 (b) There is a Healthy School Facility Fund. 10 (j) (1) (i) In each of fiscal years 2020 through 2022, the Governor shall 11 appropriate at least $30,000,000 to the Fund. 12 (ii) In each of fiscal years FISCAL YEAR 2023 [and 2024] THROUGH 13 2026, the Governor shall appropriate at least $40,000,000 to the Fund. 14 (III) IN EACH OF FISCAL YEA RS 2024 THROUGH 2026, THE 15 GOVERNOR SHALL APPROP RIATE AT LEAST $90,000,000 TO THE FUND. 16 (iii) (IV) For each of fiscal years 2021 through [2024] 2026, 50% of 17 the funds appropriated under subparagraphs (i) and (ii) of this paragraph shall be awarded 18 to public schools in Baltimore City. 19 5–324. 20 (a) Repealed. 21 (b) Repealed. 22 (c) Repealed. 23 (d) Repealed. 24 (e) Repealed. 25 (f) (1) In fiscal year 2006 and in each fiscal year thereafter, the State shall 26 distribute grants from an appropriation in the State budget or general obligation bonds to 27 county boards under the Aging Schools Program administered by the Interagency 28 Commission on School Construction in amounts equal to the funding level calculated under 29 paragraph (2) of this subsection. 30 16 HOUSE BILL 1290 (2) In fiscal year 2013 and in each fiscal year thereafter, the funding level 1 for a county is the following amounts for the following counties: 2 (i) Allegany County...................................................... $97,791; 3 (ii) Anne Arundel County ........................................... $506,038; 4 (iii) Baltimore City.................................................... $1,387,924; 5 (iv) Baltimore County.................................................. $874,227; 6 (v) Calvert County........................................................ $38,292; 7 (vi) Caroline County ...................................................... $50,074; 8 (vii) Carroll County ...................................................... $137,261; 9 (viii) Cecil County............................................................ $96,024; 10 (ix) Charles County ....................................................... $50,074; 11 (x) Dorchester County .................................................. $38,292; 12 (xi) Frederick County .................................................. $182,622; 13 (xii) Garrett County........................................................ $38,292; 14 (xiii) Harford County ..................................................... $217,379; 15 (xiv) Howard County ....................................................... $87,776; 16 (xv) Kent County ............................................................ $38,292; 17 (xvi) Montgomery County ............................................. $602,651; 18 (xvii) Prince George’s County...................................... $1,209,426; 19 (xviii) Queen Anne’s County ............................................. $50,074; 20 (xix) St. Mary’s County ................................................... $50,074; 21 (xx) Somerset County..................................................... $38,292; 22 (xxi) Talbot County.......................................................... $38,292; 23 (xxii) Washington County .............................................. $134,904; 24 HOUSE BILL 1290 17 (xxiii) Wicomico County............................................ $106,627; and 1 (xxiv) Worcester County.................................................... $38,292. 2 5–326. 3 (a) In this section, “Fund” means the NANCY K. KOPP Public School Facilities 4 Priority Fund. 5 (b) There is a NANCY K. KOPP Public School Facilities Priority Fund. 6 (i) [(1) In fiscal years 2025 and 2026, the Governor shall appropriate in the 7 annual State operating or capital budget bill at least $40,000,000 to the Fund. 8 (2)] In fiscal year 2027 and each fiscal year thereafter, the Governor shall 9 appropriate in the annual State operating or capital budget bill at least $80,000,000 to the 10 Fund. 11 5–327. 12 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 13 INDICATED. 14 (2) “BASELINE TOTAL COST O F OWNERSHIP ” MEANS THE TYPICAL 15 TOTAL COST OF OWNERS HIP OF A NEW SCHOOL BUILDING OR A SCHOOL FACILITY 16 RENEWAL, AS CALCULATED BY THE INTERAGENCY COMMISSION. 17 (3) “ESTIMATED TOTAL COST OF OWNERSHIP ” MEANS THE TOTAL 18 COST OF OWNERSHIP OF A NEW SCHOOL BUILDIN G OR A SCHOOL FACILI TY RENEWAL 19 AND THE CONCOMITANT ANALYSIS AS ESTIMATE D BY A LOCAL EDUCATI ON AGENCY 20 BEFORE THE CONSTRUCT ION OF A NEW SCHOOL BUILDING OR A SCHOOL FACILITY 21 RENEWAL BEGINS . 22 (4) (I) “PROJECTED ACTUAL TOTA L COST OF OWNERSHIP AS 23 CONSTRUCTED ” MEANS THE TOTAL COS T OF OWNERSHIP OF A NEW SCHOOL 24 BUILDING OR A SCHOOL FACILITY RENEWAL AND THE CONCOMITANT ANAL YSIS AS 25 CALCULATED BY A LOCA L EDUCATION AGENCY A FTER THE CONSTRUCTIO N OF THE 26 NEW SCHOOL BUILDING OR THE SCHOOL FACILI TY RENEWAL IS COMPLE TE. 27 (II) “PROJECTED AC TUAL TOTAL COST OF O WNERSHIP AS 28 CONSTRUCTED ” INCLUDES THE SUM OF : 29 1. THE ACTUAL COSTS OF C ONSTRUCTION AND 30 OPERATION OF THE NEW SCHOOL BUILDING OR T HE SCHOOL FACILITY R ENEWAL AS 31 OF THE DATE OF THE C ALCULATION; AND 32 18 HOUSE BILL 1290 2. AN ESTIMATION OF FUTU RE COSTS. 1 (5) “SCHOOL FACILITY RENEW AL” MEANS A CAPITAL IMPR OVEMENT 2 PROJECT FOR AN EXIST ING SCHOOL THAT , ON COMPLETION : 3 (I) WILL REDUCE THE SCHOO L’S FACILITY CONDITION INDEX, 4 AS DEFINED IN § 5–310 OF THIS SUBTITLE, TO 0.15 OR LOWER; AND 5 (II) RESULTS IN A LIKE–NEW OPERATIONAL COND ITION FOR 6 THE SCHOOL. 7 (6) “STATE SHARE PERCENTAG E” MEANS THE PERCENTAGE OF 8 ELIGIBLE COSTS , AS DEFINED IN REGULA TIONS ADOPTED IN ACC ORDANCE WITH § 9 5–303 OF THIS SUBTITLE, FOR THE CONSTRUCTION OF A NEW SCHOOL BUIL DING OR 10 A SCHOOL FACILITY RENEWAL PAI D FOR BY THE STATE. 11 (B) IF A PROJECT FOR THE CONSTRUCTION OF A NE W SCHOOL BUILDING OR 12 A SCHOOL FACILITY RE NEWAL HAS AN ESTIMAT ED TOTAL COST OF OWN ERSHIP THAT 13 IS AT LEAST 15% LESS THAN THE BASELI NE TOTAL COST OF OWN ERSHIP, THE 14 COUNTY SHALL RECEIVE A 5% INCREASE IN THE STATE SHARE PERCENTAG E FOR 15 THAT PROJECT . 16 (C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF A PROJECT 17 HAS A PROJECTED ACTU AL TOTAL COST OF OWN ERSHIP AS CONSTRUCTE D THAT IS 18 NOT AT LEAST 15% LESS THAN THE BASELI NE TOTAL COST OF OWNERSHI P, THE 19 COUNTY THAT RECEIVED A 5% INCREASE IN THE STATE SHARE PERCENTAG E FOR 20 THAT PROJECT SHALL R EPAY THAT AMOUNT TO THE INTERAGENCY COMMISSION. 21 (2) THE INTERAGENCY COMMISSION SHALL ESTA BLISH A PROCESS 22 FOR A COUNTY TO REPA Y THE INTERAGENCY COMMISSION THE AMOUNT OF THE 5% 23 INCREASE IN THE STATE SHARE PERCENTAG E OF A PROJECT THAT MET THE 24 REQUIREMENTS UNDER S UBSECTION (B) OF THIS SECTION , IF APPROXIMATELY 12 25 TO 17 MONTHS AFTER THE DAT E ON WHICH CONSTRUCT ION IS COMPLETE AND THE 26 LOCAL EDUCATION AGENCY BEG INS USING THE BUILDI NG OR RENEWAL FOR IT S 27 INTENDED PURPOSE , THE PROJECTED ACTUAL TOTAL COST OF OWNERS HIP AS 28 CONSTRUCTED IS NOT A T LEAST 15% LESS THAN THE BASELI NE TOTAL COST OF 29 OWNERSHIP. 30 (D) THE INTERAGENCY COMMISSION, IN COORDINATIO N WITH THE 31 DEPARTMENT , SHALL DEVELOP LIFE C YCLE COST ANALYSIS S TANDARDS. 32 (E) THE INTERAGENCY COMMISSION SHALL ADOP T REGULATIONS TO 33 CARRY OUT THIS SECTI ON. 34 HOUSE BILL 1290 19 Article – Economic Development 1 10–645. 2 (g) (2) The money deposited into the Baltimore City Publ ic School 3 Construction Financing Fund in accordance with this subsection shall be at least: 4 (i) $4,000,000 by November 1, 2014; 5 (ii) an additional $4,000,000 by May 1, 2015; 6 (iii) an additional $4,000,000 by November 1, 2015; 7 (iv) an additional $4,000,000 by May 1, 2016; and 8 (v) until the bonds are no longer outstanding and unpaid: 9 1. an additional [$5,000,000] $10,000,000 by each November 10 1; and 11 2. an additional [$5,000,000] $10,000,000 by each May 1. 12 (h) (2) Beginning on July 1, 2015, and continuing until the bonds that have 13 been issued to finance improvements to Baltimore City public school facilities are no longer 14 outstanding and unpaid, in addition to the amount withheld under paragraph (1) of this 15 subsection, the State Comptroller shall withhold from any installment due the Baltimore 16 City Board of School Commissioners from the General State School Fund and deposit into 17 the Baltimore City Public School Construction Financing Fund the following amounts, to 18 be paid in equal bi–monthly payments: 19 (i) $10,000,000 for fiscal year 2016; and 20 (ii) [$20,000,000] $10,000,000 for fiscal year 2017 and each fiscal 21 year thereafter. 22 10–649. 23 (g) (1) In accordance with § 9–1A–30 of the State Government Article, the 24 Comptroller shall deposit a portion of the money in the Education Trust Fund into the 25 Supplemental Public School Construction Financing Fund FOR THE PROGRAM TO B E 26 KNOWN AS THE BUILT TO LEARN PROGRAM. 27 (2) The funds under paragraph (1) of this subsection shall be deposited in 28 the following amounts: 29 (i) in fiscal year 2022 – $30,000,000; 30 20 HOUSE BILL 1290 (ii) in fiscal year 2023 – $60,000,000; and 1 (iii) in fiscal year 2024 and each fiscal year thereafter – $125,000,000. 2 (3) The Comptroller shall deposit 50% of the funds under paragraph (2) of 3 this subsection on or before November 1 each year and the other 50% on or before May 1 4 each year. 5 10–650. 6 (c) (1) Except as otherwise provided in paragraphs (2) [and (3)] THROUGH (4) 7 of this subsection, the allocation of bond proceeds authorized in § 10–628 of this subtitle 8 represents the State share of eligible public school construction or capital improvement 9 costs as established by regulation in accordance with § 5–303 of the Education Article, 10 which shall include architectural, engineering, consulting, and other planning costs as 11 eligible costs. 12 (2) For a county that receives the minimum State share of eligible school 13 construction costs and has advanced construction funding for projects in the Public School 14 Construction Program that the Interagency Commission on School Construction has 15 approved for planning, the State share of eligible costs for the allocation of bond proceeds 16 authorized in § 10–628 of this subtitle shall include 150% of the applicable gross area 17 baseline in gross square foot per student for each project. 18 (3) In Baltimore City, the bond proceeds authorized under § 10–628 of this 19 subtitle may be used for furniture, fixtures, equipment, design, and the staff necessary to 20 manage the school construction projects. 21 (4) A COUNTY MAY USE A LOA N FROM THE SCHOOL CONSTRUCTION 22 REVOLVING LOAN FUND ESTABLISHED UNDE R § 5–315 OF THE EDUCATION 23 ARTICLE TO REPRESENT THE STATE OR LOCAL SHARE OF ELIGIBLE PUBLIC S CHOOL 24 CONSTRUCTION OR CAPI TAL IMPROVEMENT COST S. 25 Article – State Finance and Procurement 26 6–226. 27 (a) (2) (i) Notwithstanding any other provision of law, and unless 28 inconsistent with a federal law, grant agreement, or other federal requirement or with the 29 terms of a gift or settlement agreement, net interest on all State money allocated by the 30 State Treasurer under this section to special funds or accounts, and otherwise entitled to 31 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 32 Fund of the State. 33 (ii) The provisions of subparagraph (i) of this paragraph do not apply 34 to the following funds: 35 HOUSE BILL 1290 21 101. the [Local Share of School Construction Costs Revolving 1 Loan] SCHOOL CONSTRUCTION REVOLVING LOAN Fund; 2 125. the NANCY K. KOPP Public School Facilities Priority 3 Fund; 4 Article – State Government 5 9–1A–30. 6 (a) In this section, “supplemental funding” means funding to: 7 (1) ensure access to public education that allows children in the State to 8 compete in the global economy of the future; 9 (2) provide funding for high–quality early education programs; 10 (3) provide opportunities for public school students to participate in career 11 and technical education programs that lead to an identified job skill or certificate; 12 (4) allow students to obtain college credit and degrees while in high school 13 at no cost to the students; 14 (5) support the advancement and professionalization of educators in public 15 education; and 16 (6) maintain, renovate, or construct public schools. 17 (b) There is an Education Trust Fund which is a special, nonlapsing fund that is 18 not subject to § 7–302 of the State Finance and Procurement Article. 19 (c) (1) There shall be credited to the Education Trust Fund all proceeds 20 allocated to the Fund under § 9–1A–27 of this subtitle and all judgments paid to the Fund 21 under § 11–210 of the Education Article. 22 (2) Money in the Education Trust Fund shall be invested and reinvested 23 by the Treasurer, and interest and earnings shall accrue to the Fund. 24 (d) Money in the Education Trust Fund shall be used [to] FOR THE FOLLOWING 25 PURPOSES, IN THE FOLLOWING ORD ER OF PRIORITY: 26 (1) REQUIRED DEPOSITS UN DER § 10–649(G) OF THE ECONOMIC 27 DEVELOPMENT ARTICLE INTO THE SUPPLEMENTAL PUBLIC SCHOOL 28 CONSTRUCTION FINANCING FUND ESTABLISHED UNDE R § 10–658 OF THE 29 ECONOMIC DEVELOPMENT ARTICLE; AND 30 22 HOUSE BILL 1290 (2) [provide] REQUIRED funding for public elementary and secondary 1 education, through continuation of the funding and formulas established under the 2 programs commonly known as the Bridge to Excellence in Public Schools Act, first enacted 3 by Chapter 288 of the Acts of the General Assembly of 2002, including the funding for 4 regional differences in the cost of education under § 5–202(f) of the Education Article; and 5 [(2)] (3) [provide] supplemental funding for education and public schools. 6 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 7 as follows: 8 Chapter 20 of the Acts of 2020 9 [SECTION 8. AND BE IT FURTHER ENACTED, That Section(s) 5 –317 and 5–324 10 of Article – Education of the Annotated Code of Maryland be repealed.] 11 [SECTION 11. AND BE IT FURTHER ENACTED, That, contingent on the 12 consolidation of funding, on or before June 30, 2026, for the Aging Schools Program and the 13 School Safety Grant Program into the Public School Facilities Priority Fund established in 14 Section 6 of this Act, Section 8 of this Act shall take effect July 1, 2026.] 15 SECTION 2. 3. AND BE IT FURTHER ENACTED, That it is the intent of the 16 General Assembly that a new Workgroup on the Assessment and Funding of School 17 Facilities be formed not later than July 2024 to determine how the relative condition of 18 public school facilities within the educational facilities sufficiency standards and the facility 19 condition index should be prioritized, taking into account local priorities and in consultation 20 with local jurisdictions prior to the Public School Facilities Priority Fund being funded for 21 fiscal year 2027. 22 SECTION 3. 4. AND BE IT FURTHER ENACTED, That it is the intent of the 23 General Assembly that: 24 (1) beginning in fiscal year 2023, within the current debt affordability 25 guidelines, the State should provide at least $400,000,000 $450,000,000 each year for public 26 school construction in order to maintain a relatively stable number of funded projects in 27 the Capital Improvement Program; and 28 (2) the annual goal established under item (1) of this section should be 29 recalculated prior to the Public School Facilities Priority Fund being funded. 30 SECTION 4. 5. AND BE IT FURTHER ENACTED, That the Interagency 31 Commission on School Construction shall update the State and local cost–share formula 32 for fiscal years 2025 and 2026 to align with the changes Chapter 36 of the Acts of the 33 General Assembly of 2021 made to the Foundation Program and the Guaranteed Tax Base 34 Program. 35 HOUSE BILL 1290 23 SECTION 5. 6. AND BE IT FURTHER ENACTED, That, on or before October 1, 1 2023, the Interagency Commission on School Construction shall update the baseline gross 2 square footage per student for the Gross Area Baselines calculation to align with the 3 standards and requirements in Chapter 36 of the Acts of the General Assembly of 2021, 4 including: 5 (1) instructional space for English–language learners; 6 (2) community schools and schools eligible for Concentration of Poverty 7 grants; 8 (3) collaborative planning spaces for teachers, taking into consideration 9 that there will be more teachers in schools as additional collaborative time during the 10 school day is phased in; 11 (4) break–out space for more one–on–one and small group instruction; and 12 (5) career and technical education pathways; and 13 (6) prekindergarten space. 14 SECTION 6. 7. AND BE IT FURTHER ENACTED, That the Interagency 15 Commission on School Construction and the Maryland Department of Health shall 16 determine the minimum equipment needed in each school for food preparation, to be used 17 by the Interagency Commission on School Construction for surveys of school buildings 18 under § 5–310(b) of the Education Article, as enacted by Section 1 of this Act. 19 SECTION 7. 8. AND BE IT FURTHER ENACTED, That it is the intent of the 20 General Assembly for the Interagency Commission on School Construction to work with 21 the Department of Legislative Services to verify survey data completed under § 5–310 of 22 the Education Article, as enacted by Section 1 of this Act, through at least July 1, 2025. 23 SECTION 9. AND BE IT FURTHER ENACTED, That, notwiths tanding any other 24 provision of law, the Maryland Stadium Authority shall use $10,000,000 of available funds 25 held in reserve for Baltimore City from revenues deposited in the Baltimore City Public 26 School Construction Facilities Fund in accordance with § 10–645(g) of the Economic 27 Development Article to provide the local share of Baltimore City projects for the program 28 to be known as the Built to Learn Program in accordance with § 10–649(g) of the Economic 29 Development Article. 30 SECTION 10. AND BE IT FURTHER E NACTED, That the increases in the State 31 share of a school construction project under § 5–303(k)(3) of the Education Article under 32 Section 1 of this Act may not apply to the Capital Improvement Program for fiscal year 33 2023 but shall apply prospectively to any projects under the program to be known as the 34 Built to Learn Program in accordance with § 10–649(g) of the Economic Development 35 24 HOUSE BILL 1290 Article approved by the Interagency Commission on School Construction after the effective 1 date of this Act. 2 SECTION 8. 11. AND BE IT FURTHER ENACTED, That this Act shall take effect 3 July 1, 2022. 4 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.