EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
*hb1322*
HOUSE BILL 1322
B1, R2 EMERGENCY BILL 2lr2372
By: Delegate McIntosh
Introduced and read first time: February 11, 2022
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Operating Budget – Consolidated Transportation Program and 2
Unanticipated Federal Funds 3
FOR the purpose of requiring the financial forecast that supports the Consolidated 4
Transportation Program to include a reserve of a certain amount for certain changes 5
in certain revenue sources; prohibiting the expenditure of certain money from the 6
federal government by amendment of an appropriation in the fiscal year 2022 or 7
2023 State budget unless the money is used for certain purposes; providing that the 8
prohibition does not apply to the amendment of an appropriation if the Board of 9
Public Works makes a certain determination; and generally relating to the operating 10
budget, the Consolidated Transportation Program, and unanticipated federal fund 11
appropriations. 12
BY repealing and reenacting, without amendments, 13
Article – Transportation 14
Section 2–103.1(b) 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2021 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Transportation 19
Section 2–103.1(m) 20
Annotated Code of Maryland 21
(2020 Replacement Volume and 2021 Supplement) 22
BY repealing and reenacting, without amendments, 23
Article – State Finance and Procurement 24
Section 7–209(c) 25
Annotated Code of Maryland 26
(2021 Replacement Volume) 27
2 HOUSE BILL 1322
BY repealing and reenacting, with amendments, 1
Article – State Finance and Procurement 2
Section 7–217 3
Annotated Code of Maryland 4
(2021 Replacement Volume) 5
BY repealing and reenacting, with amendments, 6
Chapter 357 of the Acts of the General Assembly of 2021 7
Section 5 and 7 8
BY repealing and reenacting, without amendments, 9
Chapter 357 of the Acts of the General Assembly of 2021 10
Section 30(6) 11
BY adding to 12
Chapter 357 of the Acts of the General Assembly of 2021 13
Section 30(11) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Transportation 17
2–103.1. 18
(b) The State Report on Transportation consists of the Consolidated 19
Transportation Program and the Maryland Transportation Plan. 20
(m) (1) (i) Subject to § 2–1257 of the State Government Article: 21
1. On or before September 1 of each year, the Department 22
shall submit copies of the proposed Consolidated Transportation Program and the 23
supporting financial forecast to the General Assembly; and 24
2. On submission of the budget bill to the presiding officers 25
of the General Assembly, the Department shall submit copies of the approved Consolidated 26
Transportation Program, including the manner in which each major transportation project 27
was evaluated and ranked under § 2–103.7 of this subtitle, and the supporting financial 28
forecast to the General Assembly. 29
(ii) Notwithstanding § 2–1257(b)(2) of the State Government Article, 30
the Department shall provide to each member of the General Assembly a copy of the 31
proposed Consolidated Transportation Program and the approved Consolidated 32
Transportation Program. 33
HOUSE BILL 1322 3
(2) (i) The financial forecast supporting the Consolidated 1
Transportation Program to be submitted to the General Assembly under paragraph (1) of 2
this subsection shall include the following components: 3
1. A schedule of operating expenses for each specific modal 4
administration; 5
2. A schedule of revenues, including tax and fee revenues, 6
deductions from revenues for other agencies, Department program and fees, Motor Vehicle 7
Administration cost recovery, deductions for highway user revenues, operating revenues 8
by modal administration, and miscellaneous revenues; and 9
3. A summary schedule for the Transportation Trust Fund 10
that includes the opening and closing Fund balance, revenues, transfers, bond sales, bond 11
premiums, any other revenues, expenditures for debt service, operating expenses, amounts 12
available for capital expenses, bond interest rates, bond coverage ratios, total bonds 13
outstanding, federal capital aid, and the total amount for the Transportation Capital 14
Program. 15
(ii) The financial forecast shall include[, for]: 16
1. FOR each of the components specified in subparagraph (i) 17
of this paragraph: 18
[1.] A. Actual information for the last full fiscal year; and 19
[2.] B. Forecasts of the information for each of the six 20
subsequent fiscal years, including the current fiscal year, the fiscal year for the proposed 21
budget, and the next four subsequent fiscal years; AND 22
2. FOR THE SUMMARY O F REVENUES AND RECEIPTS 23
COMPONENT , A LINE ITEM OF $35,000,000 FOR A RESERVE FOR CHANGES IN 24
REVENUE SOURCES FOR EACH FISCAL YEAR INCLUDED IN THE FINA NCIAL 25
FORECAST. 26
(iii) 1. For the period beyond the budget request year, the 27
financial forecast: 28
A. Shall maximize the use of funds for the capital program; 29
B. Except as authorized by law, may not withhold or reserve 30
funds for capital transportation grants to counties or municipal corporations; and 31
C. Except as provided in subsubparagraph 2 of this 32
subparagraph, shall increase the operating expenses, net of availability payments paid to 33
public–private partnership concessionaires, each year by at least the 5–year average 34 4 HOUSE BILL 1322
annual rate of change in the operating expenses of the Department, ending with the most 1
recently completed fiscal year. 2
2. The assumed rate of future operating budget growth 3
under subsubparagraph 1C of this subparagraph may not increase or decrease by more 4
than 0.5 percentage points from the growth rate assumed in the previous forecast. 5
(iv) The Department shall incorporate in the financial forecast the 6
most recent estimates by the Board of Revenue Estimates of the revenues from: 7
1. The corporate income tax and the sales and use tax for 8
each of the six subsequent years, including the current fiscal year and the fiscal year for 9
the proposed budget; and 10
2. Motor fuel taxes and motor vehicle titling taxes for the 11
current fiscal year and the fiscal year for the proposed budget. 12
SECTION 2. AND BE IT FURTHER EN ACTED, That the Laws of Maryland read 13
as follows: 14
Article – State Finance and Procurement 15
7–209. 16
(c) (1) An amendment of an appropriation for a program: 17
(i) except as provided in paragraph (2) of this subsection, may not 18
increase the sum of the appropriations from the General Fund of the State for all the 19
programs of the officer or unit; and 20
(ii) may permit the expenditure of money from a special fund or the 21
federal government as provided in § 2–201 of this article or § 7–217(a) of this subtitle. 22
(2) An amendment of an appropriation for a program of the Executive 23
Branch may increase the sum of the appropriations from the General Fund of the State for 24
all programs of the officer or unit if money from the Contingent Fund of the Board of Public 25
Works is transferred to the program. 26
7–217. 27
(a) (1) An officer or unit of the State government may spend money from a 28
special fund or the federal government that is not estimated or included in the State budget 29
or exceeds the estimate in the State budget and is paid into the State Treasury for a 30
program after an approved amendment of a special FUND APPROPRIATION or, SUBJECT 31
TO PARAGRAPH (2) OF THIS SUBSECTION , A federal fund appropriation for the program: 32
HOUSE BILL 1322 5
[(1)] (I) for the specific purpose to which the money is dedicated by State 1
law or act of Congress; or 2
[(2)] (II) if the money is not dedicated to a specific purpose, with the 3
approval of the Governor and as authorized in an approved budget amendment, for 4
necessary current operations. 5
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPHS (II) AND (III) OF 6
THIS PARAGRAPH , AN AMENDMENT OF A FE DERAL FUND APPROPRIA TION FOR A 7
PROGRAM IN THE FISCA L YEAR 2022 OR 2023 STATE BUDGET MAY NOT PERMIT THE 8
EXPENDITURE OF MONEY AUTHORIZED BY THE FE DERAL INFRASTRUCTURE 9
INVESTMENT AND JOBS ACT. 10
(II) 1. AN AMENDMENT OF A FED ERAL FUND 11
APPROPRIATION FOR A PROGRAM MAY PERMIT T HE EXPENDITURE OF FU NDS 12
AUTHORIZED BY THE FE DERAL INFRASTRUCTURE INVESTMENT AND JOBS ACT IF 13
THE FUNDS: 14
A. SUPPORT A PROJECT IN CLUDED IN THE 15
CONSOLIDATED TRANSPORTATION PROGRAM SUBMITTED AT THE 2022 SESSION OF 16
THE GENERAL ASSEMBLY; 17
B. TARGET THE REPLACEME NT OF LEAD PIPES NEA R 18
SCHOOLS, CHILD CARE FACILITIE S, OR STATE RESIDENTIAL FAC ILITIES SERVING 19
CHILDREN; OR 20
C. ARE ALLOCATED TO PRO JECTS IN UNDERSERVED 21
COMMUNITIES OF THE STATE. 22
2. FUNDS AUTHORIZED UNDE R THIS SUBPARAGRAPH 23
MUST BE EXPENDED BY JUNE 30, 2023. 24
3. FUNDS AUTHORIZED UNDE R THIS SUBPARAGRAPH 25
ARE IN ADDITION TO A NY OTHER FUNDS PROVI DED FOR THE SAME PUR POSE AND 26
MAY NOT SUPPL ANT EXISTING FUNDS . 27
(III) SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH DO NOT 28
APPLY TO AN AMENDMEN T OF A FEDERAL FUND APPROPRIATION FOR A PROGRAM 29
IF THE BOARD OF PUBLIC WORKS DETERMINES THAT THE AMENDMENT IS 30
ESSENTIAL TO: 31
1. MAINTAINING THE PUBL IC SAFETY, HEALTH, OR 32
WELFARE OF THE STATE; OR 33
6 HOUSE BILL 1322
2. PROTECTING THE ENVIR ONMENT OR THE ECONOM IC 1
WELFARE OF THE STATE. 2
(b) Money that is derived from a source estimated and included in an 3
appropriation act and that is in excess of the estimate shall remain in the General Fund of 4
the State until appropriated by a subsequent appropriation act. 5
Chapter 357 of the Acts of 2021 6
SECTION 5. AND BE IT FURTHER ENACTED, That amounts received pursuant 7
to Sections 2–201 and 7–217 of the State Finance and Procurement Article may be 8
expended, SUBJECT TO SECTION 7–217(A)(2) OF THE STATE FINANCE AND 9
PROCUREMENT ARTICLE, by approved budget amendment. 10
SECTION 7. AND BE IT FURTHER ENACTED, That, except as otherwise provided, 11
amounts received from sources estimated or calculated upon in the budget in excess of the 12
estimates for any special or federal fund appropriations listed in this bill may be made 13
available, SUBJECT TO SECTION 7–217(A)(2) OF THE STATE FINANCE AND 14
PROCUREMENT ARTICLE, by approved budget amendment. 15
SECTION 30. AND BE IT FURTHER ENACTED, That any budget amendment to 16
increase the total amount of special, federal, or higher education (current restricted and 17
current unrestricted) fund appropriations, or to make reimbursable fund transfers from the 18
Governor’s Office of Crime Prevention, Youth, and Victim Services or the Maryland 19
Emergency Management Agency made in Section 1 of this Act shall be subject to the 20
following restrictions: 21
(6) Notwithstanding the provisions of this section, any federal, special, or 22
higher education fund appropriation may be increased by budget amendment upon a 23
declaration by the Board of Public Works that the amendment is essential to maintaining 24
public safety, health, or welfare, including protecting the environment or the economic 1 25
welfare of the State. 26
(11) EXCEPT AS PROVIDED IN PARAGRAPH (6) OF THIS SECTION, AN 27
AMENDMENT OF A FEDER AL FUND APPROPRIATIO N MAY NOT PERMIT THE 28
EXPENDITURE OF MONEY AUTHORIZED IN THE FE DERAL INFRASTRUCTURE 29
INVESTMENT AND JOBS ACT UNLESS AUTHORIZED UNDER SECTION 7–217 OF THE 30
STATE FINANCE AND PROCUREMENT ARTICLE. 31
SECTION 3. AND BE IT FURTHER ENACTED, That this Act is an emergency 32
measure, is necessary for the immediate preservation of the public health or safety, has 33
been passed by a yea and nay vote supported by three–fifths of all the members elected to 34
each of the two Houses of the General Assembly, and shall take effect from the date it is 35
enacted. Section 2 of this Act shall remain effective through June 30, 2023, and, at the end 36
of June 30, 2023, Section 2 of this Act, with no further action required by the General 37
Assembly, shall be abrogated and of no further force and effect. 38 HOUSE BILL 1322 7