EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1324*
HOUSE BILL 1324
R2 2lr0557
By: Delegate Korman
Introduced and read first time: February 11, 2022
Assigned to: Appropriations and Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Transportation – Maryland Rail Authority – Establishment 2
(Maryland Rail Investment Act of 2022) 3
FOR the purpose of establishing the Maryland Rail Authority and the powers and duties 4
that the Rail Authority, acting on behalf of the Department of Transportation, has 5
with respect to the supervision, financing, construction, operation, maintenance, and 6
repair of railroad facilities projects; altering the membership of the Maryland 7
Transportation Authority to include the Executive Director of the Rail Authority; 8
prohibiting the Transportation Authority from passing a budget plan that exceeds a 9
certain amount; requiring the Transportation Authority to obtain the consent of the 10
Rail Authority before issuing certain bonds; requiring the Transportation Authority 11
to determine the optimal tolling rate for certain transportation facilities projects and 12
to set certain tolling rates; establishing the Rail Authority Fund; requiring certain 13
funds and revenues to be transferred from the Transportation Authority to the Rail 14
Authority Fund; and generally relating to the establishment of the Maryland Rail 15
Authority. 16
BY repealing and reenacting, with amendments, 17
Article – Transportation 18
Section 4–101, 4–202, 4–208(b)(1), 4–301, 4–306, 4–312(a)(2), 4–314, and 7–101(j), 19
(l), and (n) 20
Annotated Code of Maryland 21
(2020 Replacement Volume and 2021 Supplement) 22
BY repealing and reenacting, without amendments, 23
Article – Transportation 24
Section 4–201 and 4–208(a) 25
Annotated Code of Maryland 26
(2020 Replacement Volume and 2021 Supplement) 27
BY adding to 28 2 HOUSE BILL 1324
Article – Transportation 1
Section 4–205.1; and 9–101 through 9–401 to be under the new title “Title 9. 2
Railroads” 3
Annotated Code of Maryland 4
(2020 Replacement Volume and 2021 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Transportation 8
4–101. 9
(a) In this title the following words have the meanings indicated. 10
(b) “Authority” means the Maryland Transportation Authority. 11
(c) “Cost”, as applied to any transportation facilities project, includes the cost of 12
and all expenses incident to the construction, reconstruction, acquisition, improvement, 13
extension, alteration, modernization, planning, maintenance, and repair of the project, 14
including the cost and expenses of: 15
(1) All property acquired in connection with it; 16
(2) Financial, architectural, consulting, engineering, and legal services; 17
(3) Plans, specifications, surveys, estimates, feasibility reports, and direct 18
and indirect labor, material, equipment, and administrative expenses; and 19
(4) Financing the project, including financing charges and interest before, 20
during, and for 1 year after completion of construction. 21
(D) “NEAR OPTIMAL TOLLING ” MEANS A TOLL ING RATE THAT PROVIDES 22
95% OR MORE OF THE MAXIM UM REVENUE POSSIBLE BASED ON A TRANSPORT ATION 23
FACILITIES PROJECT’S OPTIMAL TOLLING . 24
(E) “OPTIMAL TOLLING ” MEANS A TOLLING RATE FOR A TRANSPORTATION 25
FACILITIES PROJECT T HAT MAXIMIZES REVENU E, AS DETERMINED BY THE 26
AUTHORITY. 27
[(d)] (F) “Outstanding and unpaid” does not include: 28
(1) Bonds purchased and held in sinking funds by or for the Authority; or 29
(2) If the money for their payment or redemption has been provided: 30
HOUSE BILL 1324 3
(i) Matured bonds not presented for payment; or 1
(ii) Bonds called for redemption but not presented for redemption. 2
(G) “RAIL AUTHORITY” MEANS THE MARYLAND RAIL AUTHORITY. 3
[(e)] (H) “Refunding” means the retirement and cancellation of bonds, including 4
revenue bonds of prior issues, after their acquisition by or for the Authority, whether before, 5
at, or after maturity, either in exchange for other bonds or by payment, purchase, or 6
redemption with the proceeds of the sale of other bonds. 7
[(f)] (I) “Resolution”, as used with respect to the Authority, means a resolution 8
adopted by the affirmative vote of a majority of the appointed members of the Authority 9
and concurred in by the Chairman. 10
[(g)] (J) “Revenue bonds of prior issues” means: 11
(1) “State of Maryland Bridge and Tunnel Revenue Bonds” dated as of 12
October 1, 1954; 13
(2) “State of Maryland Northeastern Expressway Revenue Bonds” dated as 14
of January 1, 1962; 15
(3) “State of Maryland Bridge and Tunnel Revenue Bonds”: 16
(i) “(Series 1968)” dated as of October 1, 1968; and 17
(ii) “(Series 1975)” dated as of July 1, 1975; and 18
(4) Any other revenue bonds issued under the same provisions of law that 19
authorized the issuance of the bonds listed in this subsection. 20
[(h)] (K) “Transportation facilities project” includes: 21
(1) The Susquehanna River Bridge, the Harry W. Nice/Thomas “Mac” 22
Middleton Potomac River Bridge, the William Preston Lane, Jr. Memorial Chesapeake Bay 23
Bridge and parallel Chesapeake Bay Bridge, the Baltimore Harbor Tunnel, the Fort 24
McHenry Tunnel, the Francis Scott Key Bridge, and the John F. Kennedy Memorial 25
Highway, together with their appurtenant causeways, approaches, interchanges, entrance 26
plazas, toll stations, and service facilities; 27
(2) A vehicle parking facility located in a priority funding area as defined 28
in § 5–7B–02 of the State Finance and Procurement Article; 29
(3) Any other project for transportation facilities that the Authority 30
authorizes to be acquired or constructed; and 31
4 HOUSE BILL 1324
(4) Any additions, improvements, or enlargements to any of these projects, 1
whenever authorized. 2
[(i)] (L) “Transportation facility” has the meaning stated in § 3–101 of this 3
article. 4
[(j)] (M) “Vehicle parking facility” means a controlled entrance and exit 5
building, structure, surface lot, and other facility for parking vehicles, for which fees or 6
charges are established for the use of the facility. 7
4–201. 8
There is a Maryland Transportation Authority. 9
4–202. 10
(a) The Secretary of Transportation is the Chairman of the Authority. 11
(b) (1) In addition to the Chairman, the Authority consists of [eight]: 12
(I) EIGHT members appointed by the Governor with the advice and 13
consent of the Senate; AND 14
(II) THE EXECUTIVE DIRECTOR OF THE RAIL AUTHORITY, WHO 15
SERVES AS AN EX OFFI CIO MEMBER . 16
(2) The appointed members of the Authority may not be employees of the 17
Executive Branch of the State government. 18
(3) Of the appointed members: 19
(i) One shall have expertise in structural engineering; 20
(ii) One shall have expertise in transportation planning; 21
(iii) One shall have expertise in land use planning; and 22
(iv) One shall have expertise in finance. 23
(4) The appointed members of the Authority shall reflect the racial, gender, 24
and geographic diversity of the population of the State. 25
(c) (1) Each appointed member serves for a term of 4 years and until a 26
successor is appointed and qualifies. 27
(2) The terms of the appointed members are staggered as required by the 28 HOUSE BILL 1324 5
terms provided for members of the Authority on January 1, 2007. 1
(3) An appointed member may not serve more than three consecutive 2
terms. 3
(4) A member appointed to fill a vacancy in an unexpired term serves only 4
for the remainder of that term. 5
(d) [A] AN APPOINTED member of the Authority is entitled to: 6
(1) The compensation provided in the State budget; and 7
(2) Reimbursement for expenses, in accordance with the Standard State 8
Travel Regulations of the Department of Budget and Management. 9
4–205.1. 10
THE AUTHORITY MAY NOT PASS AN OPER ATING BUDGET OR A CA PITAL 11
IMPROVEMENT PLAN THA T EXCEEDS $2,800,000,000. 12
4–208. 13
(a) (1) There is a Maryland Transportation Authority Police Force. 14
(2) Subject to subsection (b) of this section, a Maryland Transportation 15
Authority police officer has all the powers granted to a peace officer and a police officer of 16
this State. 17
(b) (1) A Maryland Transportation Authority police officer may exercise the 18
powers described in subsection (a)(2) of this section on property owned, leased, or operated 19
by or under the control of the Maryland Transportation Authority, Maryland Aviation 20
Administration, MARYLAND RAIL AUTHORITY, and Maryland Port Administration. 21
4–301. 22
By one or more resolutions, the Authority, AFTER OBTAINING THE CONSENT OF 23
THE RAIL AUTHORITY, may: 24
(1) Finance the cost of transportation facilities projects; 25
(2) Borrow money from time to time for that purpose; and 26
(3) Evidence the borrowing by the issuance and sale of revenue bonds, 27
notes, or other evidences of obligation on the terms, conditions, and limitations contained 28
in this subtitle. 29
6 HOUSE BILL 1324
4–306. 1
(a) Except as provided in subsection (b) of this section, revenue bonds may be 2
issued by the Authority: 3
(1) Without obtaining the consent of any instrumentality, agency, or unit 4
of this State; and 5
(2) Without any proceedings or the happening of any conditions or things 6
other than those specifically required by this subtitle. 7
(b) (1) THE AUTHORITY SHALL OBTAI N THE CONSENT OF THE RAIL 8
AUTHORITY BEFORE ISSU ING REVENUE BONDS . 9
(2) (i) Subject to subparagraph (ii) of this paragraph, revenue bonds 10
secured by toll revenue may be issued in any amount as long as the aggregate outstanding 11
and unpaid principal balance of the revenue bonds secured by toll revenue and revenue 12
bonds of prior issues does not exceed $3,000,000,000 or, in fiscal years 2015 through 2020, 13
$2,325,000,000, on June 30 of any year. 14
(ii) The maximum aggregate amount of revenue bonds that may be 15
outstanding and unpaid under subparagraph (i) of this paragraph shall be reduced by the 16
amount of: 17
1. Any loan extended to the State under the federal 18
Transportation Infrastructure Finance and Innovation Act; and 19
2. Any line of credit extended to the State under the federal 20
Transportation Infrastructure Finance and Innovation Act, to the extent the State draws 21
on the line of credit. 22
[(2)] (3) Except as otherwise provided in this section and § 4–205 of this 23
title, without the approval of the General Assembly, the Authority, AFTER OBTAINING 24
THE CONSENT OF THE RAIL AUTHORITY, may issue bonds to refinance all or any part of 25
the cost of a transportation [facility] FACILITIES project for which the Authority previously 26
issued bonds authorized under this subtitle. 27
4–312. 28
(a) (2) (I) As to all or any part of any transportation facilities project, the 29
Authority may: 30
[(i)] 1. Fix, revise, charge, and collect rentals, rates, fees, tolls, 31
and other charges and revenues for its use or for its services; and 32
[(ii)] 2. Contract with any person who desires its use for any 33 HOUSE BILL 1324 7
purpose and fix the terms, conditions, rentals, rates, fees, tolls, or other charges or revenues 1
for this use. 2
(II) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 OF 3
THIS SUBPARAGRAPH , AS TO ALL OR ANY PART OF ANY TRANSPORTATIO N 4
FACILITIES PROJECT IN WHICH THE AUTHORITY CHARGES TOL LS, THE AUTHORITY 5
SHALL: 6
A. DETERMINE THE OPTIMAL TOLLING RATE FOR THE 7
TRANSPORTATION FACIL ITIES PROJECT; AND 8
B. SET TOLLING RATES THA T ACHIEVE NEAR OPTIM AL 9
TOLLING. 10
2. A. THIS SUBSUBPARAGRAPH DOES NOT APPLY TO 11
THE I–495 AND I–270 PUBLIC–PRIVATE PARTNERSHIP . 12
B. THE AUTHORITY MAY FIX COMMUTER DISCOUNT 13
RATES. 14
4–314. 15
(a) Without in any way limiting or restricting its effect or application, this subtitle 16
is intended to authorize the Authority to finance any one or more or any combination of 17
transportation facilities projects by any one or more or combination of issues or series of 18
bonds secured by the pledge of the net or gross or any combination of the net or gross 19
rentals, rates, fees, tolls, and other charges and revenues derived from any transportation 20
facilities project or combination of projects designated by any bond authorizing resolution 21
or trust agreement securing the bonds. 22
(b) However, all funds collected from rentals, rates, fees, tolls, and other charges 23
and revenues which are not needed to meet the costs which they are required to meet under 24
§ 4–312 of this subtitle or any trust agreement and are not needed to meet obligations of 25
the Transportation Authority Fund, may be used in the discretion of the Secretary to 26
provide adequate and complete payment of all principal and interest on all bonds issued in 27
connection with the John F. Kennedy Memorial Highway and any project constructed under 28
the provisions of Section 3 (Bridge, Tunnel, and Motorway Revenue Bonds) of Chapter 608, 29
of the Acts of the General Assembly of 1976. All such remaining funds thereafter remaining 30
[may] SHALL be transferred[, upon the recommendation of the Secretary and after the 31
approval of the Board of Public Works,] to the [Transportation Trust] RAIL AUTHORITY 32
Fund and may be used for any purpose to which funds in the [Transportation Trust] RAIL 33
AUTHORITY Fund may be applied. 34
7–101. 35
8 HOUSE BILL 1324
(j) [(1)] “Railroad facility” means any facility used in providing railroad 1
services, and includes any one or more or combination of: 2
[(i)] (1) Switches, spurs, tracks, structures, terminals, yards, real 3
property, and other facilities useful or designed for use in connection with the 4
transportation of persons or goods by rail; and 5
[(ii)] (2) All other appurtenances, including locomotives, cars, 6
vehicles, and other instrumentalities of shipment or carriage, useful or designed for use in 7
connection with the transportation of persons or goods by rail. 8
[(2) “Railroad facility” does not include any transit facility.] 9
(l) “Transit facility” includes any one or more or combination of tracks, 10
rights–of–way, bridges, tunnels, subways, rolling stock, stations, terminals, ports, parking 11
areas, equipment, fixtures, buildings, structures, other real or personal property, and 12
services incidental to or useful or designed for use in connection with the rendering of 13
transit service by any means, including rail, bus, motor vehicle, or other mode of 14
transportation[, but does not include any railroad facility]. 15
(n) (1) “Transit service” means the transportation of persons and their 16
packages and baggage and of newspapers, express, and mail in regular route, special, or 17
charter service by means of transit facilities between points within the District. 18
(2) “Transit service” does not include any[: 19
(i) Vanpool] VANPOOL operation[; or 20
(ii) Railroad service]. 21
TITLE 9. RAILROADS. 22
SUBTITLE 1. DEFINITIONS. 23
9–101. 24
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE THE MEANI NGS 25
INDICATED. 26
(B) “ADMINISTRATION ” MEANS THE MARYLAND TRANSIT 27
ADMINISTRATION . 28
(C) “COST”, AS APPLIED TO ANY RA ILROAD FACILITIES PR OJECT, INCLUDES 29
THE COST OF AND ALL EXPENSES INCIDENT TO THE CONSTRUCTION , 30
RECONSTRUCTION , ACQUISITION, IMPROVEMENT , EXTENSION, ALTERATION, 31 HOUSE BILL 1324 9
MODERNIZATION , PLANNING, MAINTENANCE , AND REPAIR OF THE PR OJECT, 1
INCLUDING THE COST A ND EXPENSES OF : 2
(1) ALL PROPERTY ACQUIRED IN CONNECTION WITH THE PROJECT; 3
(2) FINANCIAL, ARCHITECTURAL , CONSULTING, ENGINEERIN G, AND 4
LEGAL SERVICES ; 5
(3) PLANS, SPECIFICATIONS , SURVEYS, ESTIMATES, FEASIBILITY 6
REPORTS, AND DIRECT AND INDIR ECT LABOR , MATERIAL, EQUIPMENT, AND 7
ADMINISTRATIVE EXPEN SES; AND 8
(4) FINANCING THE PROJECT , INCLUDING FINANCING CHARGES AND 9
INTEREST BEFORE , DURING, AND FOR 1 YEAR AFTER COMPLETIO N OF 10
CONSTRUCTION . 11
(D) “RAIL AUTHORITY” MEANS THE MARYLAND RAIL AUTHORITY. 12
(E) “RAILROAD FACILITIES PROJECT ” INCLUDES: 13
(1) (I) THE BRUNSWICK, CAMDEN, OR PENN LINES OF THE 14
MARYLAND AREA RAIL COMMUTER (MARC) SERVICE; 15
(II) EXTENDING MARC SERVICE; 16
(III) THE BALTIMORE AND POTOMAC TUNNEL; AND 17
(IV) THE SOUTHERN MARYLAND RAPID TRANSIT SYSTEM; AND 18
(2) ANY ADDITIONS, IMPROVEMENTS , OR ENLARGEMENTS TO A NY OF 19
THE PROJECTS LISTED UNDER ITEM (1) OF THIS SUBSECTION, WHENEVER 20
AUTHORIZED . 21
(F) “TRANSPORTATION AUTHORITY” MEANS THE MARYLAND 22
TRANSPORTATION AUTHORITY. 23
SUBTITLE 2. ORGANIZATION AND POWERS AND DUTIES. 24
9–201. 25
THERE IS A MARYLAND RAIL AUTHORITY. 26
9–202. 27 10 HOUSE BILL 1324
(A) (1) THE SECRETARY IS THE CHAI R OF THE RAIL AUTHORITY. 1
(2) THE SECRETARY SHALL DESIG NATE AN EXECUTIVE DIRECTOR 2
OF THE RAIL AUTHORITY. 3
(B) (1) IN ADDITION TO THE CHAIR, THE RAIL AUTHORITY CONSISTS OF 4
THE FOLLOWING MEMBER S: 5
(I) 1. ONE MEMBER WITH A BAC KGROUND IN TRANSIT , 6
APPOINTED BY THE PRESIDENT OF THE SENATE; AND 7
2. ONE MEMBER WITH A BAC KGROUND IN TRANSIT , 8
APPOINTED BY THE SPEAKER OF THE HOUSE; AND 9
(II) AS EX OFFICIO MEMBERS : 10
1. THE MARYLAND TRANSIT ADMINISTRATOR ; 11
2. THE GENERAL MANAGER O F THE WASHINGTON 12
METROPOLITAN AREA TRANSIT AUTHORITY, OR THE GENERAL MANAG ER’S 13
DESIGNEE; 14
3. THE CEO OF THE NATIONAL RAILROAD PASSENGER 15
CORPORATION , OR THE CEO’S DESIGNEE; 16
4. THE EXECUTIVE DIRECTOR OF THE 17
TRANSPORTATION AUTHORITY; 18
5. THE STATE TREASURER, OR THE STATE 19
TREASURER’S DESIGNEE; AND 20
6. THE EXECUTIVE DIRECTOR OF THE RAIL 21
AUTHORITY. 22
(2) THE MEMBERS APPOINTED BY THE PRESIDENT OF THE SENATE 23
AND THE SPEAKER OF THE HOUSE SHALL: 24
(I) REFLECT THE GEOGRAPHI C DIVERSITY OF THE STATE, TO 25
THE EXTENT PRA CTICABLE; AND 26
(II) HAVE A BACKGROUND IN TRANSIT, RAIL, OR 27
TRANSPORTATION PROJE CT FINANCE. 28 HOUSE BILL 1324 11
(C) (1) THE TERM OF AN APPOINTED MEMBER IS 4 YEARS. 1
(2) AN APPOINTED MEMBER M AY NOT SERVE MORE TH AN THREE 2
CONSECUTIVE TERMS . 3
(3) AT THE END OF A TERM , A MEMBER CONTINUES TO SERVE UNTIL 4
A SUCCESSOR IS APPOI NTED AND QUALIFIES . 5
(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 6
ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 7
QUALIFIES. 8
(D) AN APPOINTED MEMBER O F THE RAIL AUTHORITY IS ENTITLED T O: 9
(1) THE COMPENSATION PROV IDED IN THE STATE BUDGET ; AND 10
(2) REIMBURSEMENT FOR EXP ENSES, UNDER THE STANDARD STATE 11
TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 12
(E) (1) THE STATE ETHICS COMMISSION SHALL PROV IDE A TRAINING 13
COURSE FOR RAIL AUTHORITY MEMBERS ON STATE AND LOCAL ETHIC S LAWS, 14
REGULATIONS , AND POLICIES, INCLUDING: 15
(I) GENERAL ETHICS REQUIR EMENTS; 16
(II) FINANCIAL DISCLOSURES ; 17
(III) CONFLICTS OF INTEREST ; AND 18
(IV) ANY OTHER AREA THE STATE ETHICS COMMISSION 19
CONSIDERS APPROPRIAT E. 20
(2) WITHIN 6 MONTHS AFTER BEING A PPOINTED TO THE RAIL 21
AUTHORITY, A MEMBER SHALL : 22
(I) FILE A FINANCIAL DISCLOSURE STATEMENT; AND 23
(II) COMPLETE THE TRAINING COURSE. 24
(F) THE RAIL AUTHORITY IS SUBJECT TO THE OPEN MEETINGS ACT 25
UNDER TITLE 3 OF THE GENERAL PROVISIONS ARTICLE. 26
12 HOUSE BILL 1324
9–203. 1
(A) THE RAIL AUTHORITY IS ENTITLED TO THE STAFF PROVIDE D IN THE 2
STATE BUDGET . 3
(B) THE SECRETARY SHALL PROVI DE THE RAIL AUTHORITY WITH THE 4
PERSONNEL OF THE DEPARTMENT THAT THE SECRETARY CONSIDERS N ECESSARY 5
FOR PERFORMANCE OF T HE MAINTENANCE AND O THER FUNCTIONS REQUI RED OF 6
THE RAIL AUTHORITY TO MEET ITS OBLIGATIONS WITH RES PECT TO ITS RAILROAD 7
FACILITIES PROJECTS. 8
9–204. 9
(A) (1) ACTING ON BEHALF OF T HE DEPARTMENT , THE RAIL AUTHORITY 10
HAS THOSE POWERS AND DUTIES RELATING TO T HE SUPERVISION , FINANCING, 11
CONSTRUCTION , OPERATION, MAINTENANCE , AND REPAIR OF RAILROAD FACILITIES 12
PROJECTS AS ARE GRANTED TO IT BY THIS TITLE. 13
(2) THE RAIL AUTHORITY MAY : 14
(I) DELEGATE PROJECT OPER ATIONS TO THE 15
ADMINISTRATION ; AND 16
(II) USE FARE REVENUE TO PROVIDE T HE ADMINISTRATION 17
WITH PAYMENTS FOR PR OJECT MAINTENANCE . 18
(B) THE RAIL AUTHORITY HAS GENERAL SUPERVISION OF THE FOLLOWING 19
RAILROAD FACILITIES PROJECTS: 20
(1) EXTENDING MARYLAND AREA RAIL COMMUTER (MARC) 21
SERVICE, INCLUDING EXTENDIN G RAIL SERVICE TO: 22
(I) NEWARK, DELAWARE; 23
(II) NORTHERN VIRGINIA; AND 24
(III) WESTERN MARYLAND; 25
(2) REPLACING THE BALTIMORE AND POTOMAC TUNNEL; 26
(3) PLANNING, DESIGNING, ENGINEERING , CONSTRUCTING , 27
OPERATING, AND MAINTAINING THE SOUTHERN MARYLAND RAPID TRANSIT 28
SYSTEM; AND 29 HOUSE BILL 1324 13
(4) IMPROVEMENTS TO THE BRUNSWICK, CAMDEN, OR PENN LINES 1
OF THE MARC SERVICE. 2
(C) THE RAIL AUTHORITY SHALL FINAN CE, CONSTRUCT, OPERATE, 3
REPAIR, AND MAINTAIN IN GOOD ORDER THE RAILROAD FACILITIES PROJECTS 4
LISTED IN THIS SECTI ON. 5
(D) THE RAIL AUTHORITY SHALL , TO THE EXTENT PRACTI CABLE, ADHERE 6
TO THE TRANSIT PLANS PREPARED UNDER TITLE 7, SUBTITLE 3 OF THIS ARTICLE. 7
9–205. 8
(A) SUBJECT TO § 9–306 OF THIS TITLE AND IN ADDITION TO THE POWE RS 9
OTHERWISE SPECIFICAL LY GRANTED BY LAW , THE RAIL AUTHORITY HAS THE 10
POWERS DESCRIBED IN THIS SECTION. 11
(B) THE RAIL AUTHORITY MAY ACQUIRE , HOLD, AND DISPOSE OF 12
PROPERTY IN THE EXER CISE OF ITS POWERS A ND PERFORMANCE OF IT S DUTIES. 13
(C) (1) SUBJECT TO THE LIMITA TIONS DESCRIBED IN P ARAGRAPH (2) OF 14
THIS SUBSECTION , THE RAIL AUTHORITY MAY MAKE AN Y CONTRACTS AND 15
AGREEMENTS NECESSARY OR INCIDENTAL TO THE EXERCISE OF ITS POWERS AND 16
PERFORMANCE OF ITS D UTIES. 17
(2) NOT LESS THAN 45 DAYS BEFORE ENTERING INTO ANY CONTRACT 18
OR AGREEMENT TO ACQU IRE OR CONSTRUCT A R EVENUE–PRODUCING PASSENGER 19
RAIL OR TRANSIT PROJ ECT, THE RAIL AUTHORITY SHALL PROVI DE, IN 20
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, TO THE 21
SENATE BUDGET AND TAXATION COMMITTEE, THE HOUSE COMMITTEE ON WAYS 22
AND MEANS, AND THE HOUSE APPROPRIATIONS COMMITTEE, FOR REVIEW AND 23
COMMENT, AND TO THE DEPARTMENT OF LEGISLATIVE SERVICES A DESCRIPTIO N 24
OF THE PROPO SED PROJECT, A SUMMARY OF THE CON TRACT OR AGREEMENT , AND 25
A FINANCING PLAN THA T DETAILS: 26
(I) THE ESTIMATED ANNUAL REVENUE FROM THE ISS UANCE OF 27
BONDS TO FINANCE THE PROJECT; AND 28
(II) THE ESTIMATED IMPACT OF THE ISSUANCE OF B ONDS TO 29
FINANCE THE PROJEC T ON THE BONDING CAP ACITY OF THE RAIL AUTHORITY. 30
(D) (1) (I) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 31
RAIL AUTHORITY MAY EMPLOY AND FIX THE COMPENSA TION OF ATTORNEYS , 32 14 HOUSE BILL 1324
CONSULTING ENGINEERS , ACCOUNTANTS , CONSTRUCTION AND FIN ANCIAL 1
EXPERTS, SUPERINTENDENTS, MANAGERS, AND ANY OTHER AGENTS AND 2
EMPLOYEES THAT IT CO NSIDERS NECESSARY TO EXERCISE ITS POWERS AND 3
PERFORM ITS DUTIES . 4
(II) THE COMPENSATION ESTA BLISHED BY THE RAIL 5
AUTHORITY FOR EXECUTI VE MANAGEMENT POSITI ONS SHALL BE CONSIST ENT WITH 6
THE COMPENSATION OF COMPARABLE POSITIONS IN THE DEPARTMENT . 7
(III) THE COMPENSATION ESTA BLISHED BY THE RAIL 8
AUTHORITY SHALL BE RE PORTED TO THE GENERAL ASSEMBLY EACH YEAR AS PART 9
OF THE RAIL AUTHORITY’S PRESENTATION OF IT S BUDGET. 10
(2) THE EXPENSE OF EMPLOY ING THESE PERSONS MA Y BE PAID ONLY 11
FROM REVENUES OR FRO M THE PROCEEDS OF RE VENUE BONDS ISSUED B Y THE 12
RAIL AUTHORITY. 13
(E) THE RAIL AUTHORITY MAY APPLY F OR AND RECEIVE GRANT S FROM 14
ANY FEDERAL AGENCY F OR THE PLANNING , CONSTRUCTION , OPERATION, OR 15
FINANCING OF ANY PASSENGER RAIL OR TR ANSIT PROJECT AND MAY RECEIVE AID 16
OR CONTRIBUTIONS OF MONEY, PROPERTY, LABOR, OR OTHER THINGS OF V ALUE 17
FROM ANY SOURCE , TO BE HELD, USED, AND APPLIED FOR THE PURPOSES FOR 18
WHICH THE GRANTS , AID, AND CONTRIBUTIONS AR E MADE. 19
(F) THE RAIL AUTHORITY MAY ADOPT R ULES AND REGULATIONS TO CARRY 20
OUT THE PROVISIONS O F THIS TITLE. 21
(G) THE RAIL AUTHORITY MAY DO ANYT HING ELSE NECESSARY OR 22
CONVENIENT TO CARRY OUT THE POWERS GRANT ED IN THIS TITLE. 23
9–206. 24
SUBJECT TO TITLE 12 OF THE REAL PROPERTY ARTICLE AND CHAPTER 608 25
OF THE ACTS OF THE GENERAL ASSEMBLY OF 1976, THE RAIL AUTHORITY MAY 26
CONDEMN PROPERTY FOR ANY RAILROAD FACILITIES PROJECT AUT HORIZED TO BE 27
FINANCED WITH REVENU E BONDS OF PRIOR ISS UES. 28
9–207. 29
EXCEPT FOR WATER AND SEWER CHARGES IMPOSE D BY THE STATE OR ANY OF 30
ITS AGENCIES OR POLI TICAL SUBDIVISIONS , THE RAIL AUTHORITY, ITS ACTIVITIES, 31
AND THE PROPERTY IT OWNS OR CONTROLS ARE EXEM PT FROM ALL TAXES , 32
ASSESSMENTS , AND CHARGES , WHETHER FEDERAL , STATE, OR LOCAL, NOW OR 33 HOUSE BILL 1324 15
SUBSEQUENTLY LEVIED OR IMPOSED. 1
9–208. 2
THE RAIL AUTHORITY MAY CONTRAC T WITH THE ADMINISTRATION TO 3
AUTHORIZE TRANSPORTATION AUTHORITY POLICE OFFI CERS TO EXERCISE THE 4
POWERS DESCRIBED UND ER § 4–208 OF THIS ARTICLE ON PROPERTY OWNED , 5
LEASED, OR OPERATED BY OR UN DER THE CONTROL OF T HE RAIL AUTHORITY. 6
9–209. 7
(A) ON OR BEFORE SEPTEMBER 1 EACH YEAR, THE RAIL AUTHORITY, IN 8
COLLABORATION WITH T HE TRANSPORTATION AUTHORITY, SHALL DEVELOP AND , 9
SUBJECT TO APPROVAL OF THE TRANSPORTATION AUTHORITY, ADOPT A 6–YEAR 10
FINANCIAL FORECAST F OR THE OPERATIONS OF THE RAIL AUTHORITY. 11
(B) IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, 12
THE RAIL AUTHORITY SHALL SUBMI T TO THE GENERAL ASSEMBLY: 13
(1) A DRAFT OF THE FINANCI AL FORECAST ON SUBMI SSION OF THE 14
BUDGET BILL TO THE P RESIDING OFFICERS OF THE GENERAL ASSEMBLY; AND 15
(2) THE FINANCIAL FORECAST AS APPROVED BY THE RAIL 16
AUTHORITY ON OR BEFOR E SEPTEMBER 1 EACH YEAR. 17
(C) THE FINANCIAL FORECAS T SHALL INCLUDE THE FOLLOWING 18
COMPONENTS : 19
(1) A SCHEDULE OF OPERATIN G EXPENSES; 20
(2) A SCHEDULE OF REVENUES , INCLUDING CONCESSION S INCOME, 21
INVESTMENT INCOME , OTHER INCOME , AND TRANSFERS FROM T HE DEPARTMENT ; 22
(3) A SCHEDULE OF PLANNED BOND ISSUANCES , INCLUDING A 23
DETAILED SUMMARY OF BONDS ISSUED TO FUND THE CAPITAL PROGRAM AND 24
BONDS ISSUED TO FUND CAPITALIZED INTEREST ; 25
(4) A SCHEDULE OF DEBT SER VICE IN EACH FISCAL YEAR FOR EACH 26
BOND ISSUANCE OF ALL DEBT ISSUED BY THE RAIL AUTHORITY, INCLUDING DEBT 27
SERVICE ESTIMATES OF PLANNED BOND ISSUANC ES; AND 28
(5) A SUMMARY SCHEDULE FOR THE RAIL AUTHORITY THAT 29
INCLUDES: 30 16 HOUSE BILL 1324
(I) THE TOTAL CASH BALANCE ; 1
(II) THE AMOUNT OF THE CAS H BALANCE THAT IS 2
ENCUMBERED ; 3
(III) THE ANNUAL CASH SURPL US OR DEFICIT; 4
(IV) REVENUES; 5
(V) TRANSFERS TO THE DEPARTMENT FROM THE RAIL 6
AUTHORITY; 7
(VI) TRANSFERS TO THE RAIL AUTHORITY FROM THE 8
DEPARTMENT ; 9
(VII) BOND SALES; 10
(VIII) EXPENDITURES FOR DEBT SERVICE; 11
(IX) OPERATING EXPENSES ; 12
(X) CAPITAL EXPENSES ; 13
(XI) MAINTENANCE AND OPERA TIONS EXPENSE RESERV E 14
ACCOUNTS; 15
(XII) FORECASTED BOND INTER EST RATES; 16
(XIII) TOTAL BOND S OUTSTANDING ; AND 17
(XIV) FINANCIAL COVERAGE RA TIOS, INCLUDING THE RATIO OF 18
TOTAL CASH TO FARE REVENUES, THE DEBT SERVICE COV ERAGE RATIO, AND THE 19
RATE COVENANT COMPLI ANCE RATIO. 20
(D) THE FINANCIAL FORECAS T SHALL INCLUDE , FOR EACH OF THE 21
COMPONENTS SPEC IFIED IN SUBSECTION (C) OF THIS SECTION: 22
(1) ACTUAL INFORMATION FO R THE LAST FULL FISC AL YEAR; AND 23
(2) FORECASTS OF THE INFO RMATION FOR EACH OF THE 6 24
SUBSEQUENT FISCAL YE ARS, INCLUDING THE CURREN T FISCAL YEAR, THE FISCAL 25
YEAR FOR THE PROPOSE D BUDGET, AND THE NEXT 4 SUBSEQUENT FISCAL YE ARS. 26 HOUSE BILL 1324 17
9–210. 1
(A) THE RAIL AUTHORITY SHALL EMPLO Y A GENERAL COUNSEL WHO 2
SERVES AT THE PLEASU RE OF THE SECRETARY. 3
(B) THE GENERAL COUNSEL I S ENTITLED TO THE CO MPENSATION 4
DETERMINED BY THE MARYLAND TRANSIT ADMINISTRATOR . 5
9–211. 6
(A) THE RAIL AUTHORITY SHALL MAKE PUBLICLY AVAILABLE O N ITS 7
WEBSITE: 8
(1) EACH OPEN MEETING AGE NDA: 9
(I) AT LEAST 48 HOURS IN ADVANCE OF EACH MEETING ; OR 10
(II) IF THE MEETING IS BEI NG HELD DUE TO AN EM ERGENCY, A 11
NATURAL DI SASTER, OR ANY OTHER UNANTIC IPATED SITUATION , AS FAR IN 12
ADVANCE OF THE MEETI NG AS PRACTICABLE ; 13
(2) MEETING MINUTES FROM THE PORTIONS OF A ME ETING THAT 14
WERE HELD IN OPEN SE SSION, NOT MORE THAN 2 BUSINESS DAYS AFTER THE 15
MINUTES ARE APPROVED ; 16
(3) LIVE VIDEO STREAMING OF EA CH OPEN MEETING OF T HE RAIL 17
AUTHORITY THAT IS HEL D AT: 18
(I) THE HEADQUARTERS OF T HE RAIL AUTHORITY; OR 19
(II) ANY OTHER LOCATION WH ERE THE RAIL AUTHORITY HELD 20
AT LEAST 10 MEETINGS DURING THE IMMEDIATELY PRECEDIN G CALENDAR YEAR ; 21
AND 22
(4) A COMPLETE AND UNEDITE D ARCHIVED VIDEO REC ORDING OF 23
EACH OPEN MEETING FO R WHICH LIVE VIDEO S TREAMING WAS MADE AV AILABLE 24
UNDER ITEM (3) OF THIS SUBSECTION F OR A MINIMUM OF 5 YEARS AFTER THE DATE 25
OF THE MEETING . 26
(B) THE DEPARTMENT OF INFORMATION TECHNOLOGY SHALL PROV IDE TO 27
THE RAIL AUTHORITY THE TECHNIC AL STAFF, SUPPORT, AND EQUIPMENT 28
NECESSARY TO LIVESTR EAM THE OPEN MEETING S OF THE RAIL AUTHORITY. 29 18 HOUSE BILL 1324
SUBTITLE 3. FINANCING OF PROJECTS. 1
9–301. 2
BY ONE OR MORE RESOLU TIONS, THE RAIL AUTHORITY MAY : 3
(1) FINANCE THE COST OF RAILROAD FACILITIES PROJECTS; 4
(2) BORROW MONEY FROM TIM E TO TIME FOR THAT P URPOSE; AND 5
(3) EVIDENCE THE BORROWIN G BY THE ISSUANCE AN D SALE OF 6
REVENUE BONDS , NOTES, OR OTHER EVIDENCES OF OBLIG ATION ON THE TERMS , 7
CONDITIONS, AND LIMITATIONS CONT AINED IN THIS SUBTIT LE. 8
9–302. 9
(A) EXCEPT AS PROVIDED IN § 9–306(B) OF THIS SUBTITLE , WITHOUT 10
LIMITING THE POWER O F THE RAIL AUTHORITY TO ISSUE AD DITIONAL REVENUE 11
BONDS UNDER THE PR OVISIONS OF LAW THAT AUTHORIZE THE ISSUAN CE OF 12
REVENUE BONDS OF PRI OR ISSUES, THE RAIL AUTHORITY FROM TIME T O TIME MAY 13
ISSUE ITS REVENUE BO NDS TO FINANCE THE C OST OF ANY ONE OR MO RE OR 14
COMBINATION OF RAILROAD FACILITIES PROJECTS. 15
(B) AS TO REVENUE BONDS O F ANY ISSUE, THE RAIL AUTHORITY MAY 16
DETERMINE: 17
(1) THE DATE OR DATES OF ISSUE; 18
(2) THE DATE OR DATES AND AMOUNT OR AMOUNTS OF MATURITY, 19
WHICH NEED NOT BE IN EQUAL PRINCIPAL AMOU NTS OR CONSECUTIVE A NNUAL 20
INSTALLMENTS , BUT A BOND MAY NOT BE ISSUED TO MATURE LATER THAN 40 YEARS 21
AFTER THE DATE OF IT S ISSUE; 22
(3) THE RATE OR RATES OF INTEREST PAYABLE ON THE BONDS, OR 23
THE MANNER OF DETERM INING THE RATE OR RA TES OF INTEREST , AND THE DATE 24
OR DATES OF PAYMENT OF INTEREST; 25
(4) THE TENO R, FORM OR FORMS , DENOMINATION OR 26
DENOMINATIONS , MANNER OF EXECUTION , AND PLACE OR PLACES OF PAYMENT OF 27
THE PRINCIPAL OF AND INTEREST ON THE BOND S, WHICH MAY BE AT ANY BANK OR 28
TRUST COMPANY WITHIN OR OUTSIDE THE STATE; 29
HOUSE BILL 1324 19
(5) WHETHER THE BONDS ARE TO BE ISSUED IN COUPON OR 1
REGISTERED FORM OR B OTH AND WHETHER PROV ISION IS TO BE MADE FOR THE 2
REGISTRATION OF THE PRINCIPAL ONLY OF CO UPON BONDS , FOR THE 3
RECONVERSION OF FULL Y REGISTERED BONDS I NTO COUPON FORM , AND FOR THE 4
REPLACEMENT OF BONDS THAT ARE MUTILATED , LOST, OR DESTROYED ; 5
(6) WHETHER ALL OR ANY PA RT OF THE BONDS ARE REDEEMABLE 6
BEFORE MATURITY AND , IF SO, THE TERMS , CONDITIONS, AND PRICES OF 7
REDEMPTION ; AND 8
(7) ANY OTHER MATTER RELA TING TO THE FORM , TERMS, 9
CONDITIONS, ISSUANCE, SALE, AND DELIVERY OF THE BONDS. 10
9–303. 11
(A) (1) REVENUE BONDS ISSUED UNDER THIS SUBTITLE SHALL BE 12
EXECUTED ON BEHALF O F THE RAIL AUTHORITY BY THE MANU AL SIGNATURE OF AT 13
LEAST ONE AUTHORIZED INDIVIDUAL. 14
(2) OTHER SIGNATURES ON T HE BONDS MAY BE EITH ER MANUAL OR 15
FACSIMILE. 16
(B) IF AN INDIVIDUAL WHOS E MANUAL OR FACSIMIL E SIGNATURE APPEARS 17
ON ANY BOND OR COUPO N ISSUED UNDER THIS SUBTITLE CEASES TO S ERVE IN AN 18
AUTHORIZED CAPACITY BEFORE THE DELIVERY OF THE BOND , THE SIGNATURE 19
NEVERTHELESS IS AS V ALID AND SUFFICIENT FOR ALL P URPOSES AS IF THE 20
INDIVIDUAL HAD REMAI NED IN THAT CAPACITY UNTIL DELIVERY OF TH E BOND. 21
9–304. 22
NOTWITHSTANDING ANY O THER PROVISION OF LA W OR ANY RECITALS IN THE 23
INSTRUMENTS , THE REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF 24
OBLIGATION ISSUED UN DER THIS SUBTITLE ARE INVESTMEN T SECURITIES UNDER 25
THE LAWS OF TH E STATE. 26
9–305. 27
THE REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF OBLIGATION 28
ISSUED UNDER THIS SU BTITLE AND THEIR ISS UANCE AND SALE ARE E XEMPT FROM 29
THE PROVISIONS OF §§ 8–206 AND 8–208 OF THE STATE FINANCE AND 30
PROCUREMENT ARTICLE, AND THE RAIL AUTHORITY MAY SELL TH EM AT EITHER 31
PUBLIC OR PRIVATE SA LE IN THE MANNER AND FOR THE PRICE THAT I T 32
DETERMINES . 33 20 HOUSE BILL 1324
9–306. 1
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, REVENUE 2
BONDS MAY BE ISSUED BY THE RAIL AUTHORITY: 3
(1) WITHOUT OBTAINING THE CONSENT OF ANY INSTR UMENTALITY, 4
AGENCY, OR UNIT OF THE STATE; AND 5
(2) WITHOUT ANY PROCEEDIN GS OR THE HAPPENING OF ANY 6
CONDITIONS OR THINGS OTHER THAN THOSE SPE CIFICALLY REQUIRED B Y THIS 7
SUBTITLE. 8
(B) (1) (I) SUBJECT TO SUBPARAGRA PH (III) OF THIS PARAGRAPH , 9
REVENUE BONDS SECURE D BY FARE REVENUE MAY BE ISSUE D IN ANY AMOUNT . 10
(II) ON OR BEFORE APRIL 1, 2024, THE RAIL AUTHORITY 11
SHALL SUBMIT, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 12
ARTICLE, A REPORT TO THE GENERAL ASSEMBLY THAT INCLUDES: 13
1. A RECOMMENDATION ON TH E MAXIMUM AGGREGATE 14
AMOUNT OF REVENUE BO NDS THAT MAY BE OUTS TANDING AND UNPAID I N A FISCAL 15
YEAR; AND 16
2. WHETHER THE MAXIMUM A GGREGATE AMOUNT 17
DETERMINED UNDER ITEM 1 OF THIS SUBPAR AGRAPH SHOULD BE ESTABLISHED BY 18
LAW OR REGULATION . 19
(III) THE MAXIMUM AGGREGATE AMOUNT OF REVENUE BO NDS 20
THAT MAY BE OUTSTAND ING AND UNPAID UNDER SUBPARAGRAPH (I) OF THIS 21
PARAGRAPH SHALL BE R EDUCED BY THE AMOUNT OF: 22
1. ANY LOAN EXTENDED TO THE STATE UNDER THE 23
FEDERAL TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT; 24
AND 25
2. ANY LINE OF CREDIT EX TENDED TO THE STATE 26
UNDER THE FEDERAL TRANSPORTATION INFRASTRUCTURE FINANCE AND 27
INNOVATION ACT, TO THE EXTENT THE STATE DRAWS ON THE LI NE OF CREDIT. 28
(2) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECT ION AND § 9–205 29
OF THIS TITLE, WITHOUT THE APPROVAL OF THE GENERAL ASSEMBLY, THE RAIL 30
AUTHORITY MAY ISSUE B ONDS TO REFINANCE AL L OR ANY PART OF THE COST OF A 31 HOUSE BILL 1324 21
PASSENGER RAIL OR TR ANSIT PROJECT FOR WHICH THE RAIL AUTHORITY 1
PREVIOUSLY ISSUED BO NDS AUTHORIZED UNDER THIS SUBTITLE. 2
9–307. 3
(A) SUBJECT TO THE PROVIS IONS OF §§ 9–306(B) AND 9–320 OF THIS 4
SUBTITLE, IF BY REASON OF INCR EASED CONSTRUCTION C OSTS, ERROR IN 5
ESTIMATES, OR OTHERWISE , THE PROCEEDS OF THE REVENUE BONDS OF ANY ISSUE 6
ARE LESS THAN THE AM OUNT REQUIRED FOR TH E PURPOSE FOR WHICH THE BONDS 7
ARE AUTHORIZED , ADDITIONAL REVENUE B ONDS MAY BE ISSUED I N A SIMILAR 8
MANNER TO PROVIDE TH E AMOUNT OF THE DEFI CIENCY. 9
(B) (1) THE ADDITIONAL BONDS SHALL BE DEEMED TO B E OF THE SAME 10
ISSUE AND SHALL BE E NTITLED TO PAYMENT F ROM THE SAME FUND , WITHOUT 11
PREFERENCE OR PRIORI TY, AS THE BONDS FIRST I SSUED. 12
(2) IF THE PROCEEDS OF TH E ADDITIONAL BONDS E XCEED THE 13
AMOUNT REQUIRED , THE EXCESS SHALL BE DEPOSITED TO THE CREDIT OF ANY 14
RESERVE FUND FOR THE BONDS OR, IF SO PROVIDED IN TH E TRUST AGREEMENT 15
SECURING THE BONDS , MAY BE APPLIED TO TH E COST OF ANY ADDITI ONAL 16
PROJECT. 17
9–308. 18
(A) THE RAIL AUTHORITY FROM TIME T O TIME MAY ISSUE ITS REVENUE 19
REFUNDING BONDS FOR: 20
(1) REFUNDING ANY BONDS I SSUED UNDER THIS SUB TITLE OR ANY 21
REVENUE BONDS OF PRI OR ISSUES, INCLUDING THE PAYMEN T OF ANY REDEMPTION 22
PREMIUM ON THE BONDS AND ANY INTEREST ACC RUED OR TO ACCRUE TO THE DATE 23
OF REDEMPTION OF THE BONDS; 24
(2) CONSTRUCTING IMPROVEMENTS OR EXTE NSIONS TO OR 25
ENLARGEMENTS OF ANY RAILROAD FACILITIES PROJECT ; AND 26
(3) PAYING ALL OR ANY PAR T OF THE COST OF ANY ADDITIONAL 27
RAILROAD FACILITIES PROJECT . 28
(B) THE ISSUANCE OF REVEN UE REFUNDING BONDS , THE DETAILS OF 29
THEIR ISSUANCE , THE RIGHTS OF THEIR HOLDERS, AND THE RIGHTS , DUTIES, AND 30
OBLIGATIONS OF THE RAIL AUTHORITY WITH RESPEC T TO THEM ARE GOVERN ED BY 31
THE PROVISIONS OF TH IS SUBTITLE RELATING TO REVENUE BOND S, INSOFAR AS 32
THOSE PROVISIONS MAY BE APPLICABLE . 33 22 HOUSE BILL 1324
9–309. 1
BEFORE THE PREPARATIO N OF DEFINITIVE BOND S, THE RAIL AUTHORITY 2
MAY ISSUE ITS INTERI M CERTIFICATES OR TE MPORARY BONDS , WITH OR WITHOUT 3
COUPONS, EXCHANGEABLE FOR DEF INITIVE BONDS WHEN T HE DEFINITIVE BONDS 4
HAVE BEEN EXECUTED A ND ARE AVAILABLE FOR DELIVERY. 5
9–310. 6
(A) THE RAIL AUTHORITY MAY ISSUE I TS BOND ANTICIPATION NOTES, 7
PAYABLE TO THE BEARE R OR REGISTERED HOLD ER OF THE NOTES , OUT OF THE 8
FIRST PROCEEDS OF TH E NEXT SALE OF BONDS ISSUED UNDER THIS SUBTITLE. 9
(B) THE RESOLUTION AUTHOR IZING THE ISSUANCE O F BOND ANTICIPATION 10
NOTES MAY PROVIDE FO R THE ISSUANCE OF TH ESE NOTES IN SERIES , AS FUNDS ARE 11
REQUIRED, AND FOR THE RENEWAL OF THESE NOTES AT MA TURITY, WITH OR 12
WITHOUT RESALE . 13
(C) THE ISSUANCE OF BOND ANTICIPATION NO TES, THE DETAILS OF THEIR 14
ISSUANCE, THE RIGHTS OF THEIR HOLDERS, AND THE RIGHTS , DUTIES, AND 15
OBLIGATIONS OF THE RAIL AUTHORITY WITH RESPEC T TO THEM ARE GOVERN ED BY 16
THE PROVISIONS OF TH IS SUBTITLE RELATING TO THE ISSUANCE OF T HE BONDS IN 17
ANTICIPATION OF THE SALE OF WHICH THE NO TES ARE ISSUED, INSOFAR AS THOSE 18
PROVISIONS MAY BE AP PLICABLE. 19
9–311. 20
(A) (1) REVENUE BONDS ISSUED UNDER THIS SUBTITLE MAY BE 21
SECURED BY A TRUST A GREEMENT BETWEEN THE RAIL AUTHORITY AND A 22
CORPORATE TRUSTEE THAT MAY BE ANY TRUST COMP ANY OR BANK HAVING T RUST 23
POWERS WITHIN OR OUTSIDE THE STATE. 24
(2) THE TRUST AGREEMENT M AY PLEDGE OR ASSIGN ALL OR ANY 25
PART OF THE REVENUES OF THE RAIL AUTHORITY OR OF ANY RAILROAD FACILITIES 26
PROJECT, BUT MAY NOT MORTGAGE ANY PART OF ANY RAILROAD FACILITIES 27
PROJECT. 28
(B) ANY TRUST AGREEMENT O R BOND AUTHORIZING R ESOLUTION MAY : 29
(1) CONTAIN ANY PROVISION S FOR THE PROTECTION AND 30
ENFORCEMENT OF THE R IGHTS AND REMEDIES O F BONDHOLDERS AS ARE 31
CONSIDERED REASONABL E AND PROPER , INCLUDING COVENANTS SETTING FORTH 32 HOUSE BILL 1324 23
THE DUTIES OF THE RAIL AUTHORITY AS TO THE F INANCING OR DEVELOPM ENT OF 1
ANY RAILROAD FACILITIES PROJECT , THE EXTENSION , ENLARGEMENT , 2
IMPROVEMENT , MAINTENANCE , OPERATION, REPAIR, AND INSURANCE OF THE 3
PROJECT, AND THE CUSTODY , SAFEGUARDING , AND APPLICATION OF M ONEY; 4
(2) PROVIDE FOR THE EMPLO YMENT OF CONSULTING ENGINEERS IN 5
CONNECTION WITH THE CONSTRUCTION OR OPER ATION OF ANY RAILROAD 6
FACILITIES PROJECT ; 7
(3) SET FORTH THE RIGHTS AND REMEDIES OF THE BONDHOLDERS 8
AND OF THE TRUSTEE ; 9
(4) RESTRICT THE INDIVIDU AL RIGHT OF ACTION B Y BONDHOLDERS ; 10
AND 11
(5) CONTAIN ANY OTHER PRO VISIONS THAT THE RAIL AUTHORITY 12
CONSIDERS REASONABLE AND PROPER FOR THE S ECURITY OF THE BONDH OLDERS, 13
INCLUDING: 14
(I) COVENANTS TO RESTRICT OR PROHIBIT THE 15
CONSTRUCTION OR OPER ATION OF COMPETING RAILROAD FACILITIES; AND 16
(II) COVENANTS RELATING TO THE ISSUANCE OF ADDI TIONAL 17
PARITY BONDS ON STAT ED CONDITIONS CONSIS TENT WITH THE REQUIR EMENTS OF 18
THIS SUBTITLE. 19
(C) ALL EXPENSES INCURRED IN CARRYING OUT THE TRUST AGREEMENT 20
MAY BE TREATED AS A PART OF THE COST OF THE OPERATION OF THE RAILROAD 21
FACILITIES PROJECT I N CONNECTION WITH WH ICH THE BONDS HAVE B EEN ISSUED. 22
(D) THE PROCEEDS OF THE S ALE OF BONDS SHALL B E PAID TO THE 23
TRUSTEE UNDER THE TR UST AGREEMENT SECURI NG THE BONDS AND SHA LL BE 24
DISBURSED IN THE MAN NER AND UNDER THE RE STRICTIONS, IF ANY, PROVIDED IN 25
THE TRUST AGREEMENT . 26
(E) ANY BANK OR TRUST COM PANY INCORPORATED UN DER THE LAWS OF 27
THE STATE THAT ACTS AS DEPOSITARY OF THE PR OCEEDS OF THE BONDS OR OF 28
REVENUES MAY FURNISH ANY INDEMNIFYING BON DS OR PLEDGE ANY SEC URITIES 29
THAT THE RAIL AUTHORITY REQUIRES . 30
9–312. 31
NOTWITHSTANDING ANY O THER PROVISION OF LA W, IF THE RAIL AUTHORITY 32 24 HOUSE BILL 1324
IS OPERATING A RAILR OAD FACILITIES PROJECT , THE RAIL AUTHORITY SHALL FIX , 1
REVISE, CHARGE, AND COLLECT RENTALS , RATES, FEES, FARES, AND OTHER 2
CHARGES FOR ITS USE OR FOR ITS SERVICES CONSISTENT WITH THE PROVISIONS OF 3
§§ 7–208, 7–505, AND 7–506 OF THIS ARTICLE AS THOSE PROVISIONS APPLY TO THE 4
ADMINISTRATION . 5
9–313. 6
(A) (1) ALL RENTALS, RATES, FARES, FEES, AND OTHER CHARGES AN D 7
REVENUES DERIVED FRO M ANY RAILROAD FACILITIES PROJECT S HALL BE SET 8
ASIDE IN A FUND KNOW N AS THE RAIL AUTHORITY FUND, EXCEPT TO THE EXTENT 9
THAT THEY ARE PLEDGE D UNDER AN APPLICABL E TRUST AGREEMENT TO SECURE 10
EITHER: 11
(I) REVENUE BONDS ISSUED UNDER THIS SUBTITLE IF THE 12
TRUST AGREEMENT OR B OND AUTHORIZING RESO LUTION EXPRESSLY PRO VIDES 13
THAT THIS SECTION DO ES NOT APPLY TO THOS E BONDS; OR 14
(II) REVENUE BONDS OF PRIO R ISSUES. 15
(2) THE RAIL AUTHORITY FUND SHALL BE PLEDGED TO AND 16
CHARGED WITH THE PAY MENT OF: 17
(I) THE INTEREST ON BONDS ISSUED UNDER THIS SU BTITLE AS 18
IT FALLS DUE; 19
(II) THE PRINCIPAL OF THE BONDS AS IT FALL S DUE; 20
(III) THE NECESSARY CHARGES OF PAYING AGENTS FOR PAYING 21
PRINCIPAL AND INTERE ST; AND 22
(IV) THE REDEMPTION PRICE OR PURCHASE PRICE OF BONDS 23
RETIRED BY CALL OR P URCHASE AS PROVIDED IN THE BOND AUTHORIZ ING 24
RESOLUTION OR TRUST AGREEMENT . 25
(B) (1) THE PLEDGE IS VALID A ND BINDING FROM THE TIME IT IS MADE. 26
(2) RENTALS, RATES, FARES, FEES, AND OTHER CHARGES AN D 27
REVENUES OR OTHER MO NEY SO PLEDGED AND L ATER RECEIVED BY THE RAIL 28
AUTHORITY IMMEDIATELY SHALL BE SUBJECT TO THE LIEN OF THE PLEDGE 29
WITHOUT PHYSICAL DEL IVERY OR ANY FURTHER ACT. 30
(3) THE LIEN OF THE PLEDG E IS VALID AND BINDI NG AS AGAINST ALL 31 HOUSE BILL 1324 25
PARTIES HAVING ANY C LAIMS OF ANY KIND IN TORT, CONTRACT, OR OTHERWISE 1
AGAINST THE RAIL AUTHORITY, WHETHER OR NOT THESE PARTIES HAVE NOTICE OF 2
THE PLEDGE. 3
(4) NOTWITHSTANDING ANY L AW TO THE CONTRARY , NEITHER THE 4
RESOLUTION NOR ANY T RUST AGREEMENT BY WH ICH A PLEDGE IS CREA TED NEED 5
BE FILED OR RECORDED OTHER THAN IN THE RE CORDS OF THE RAIL AUTHORITY. 6
(C) THE USE AND DISPOSITI ON OF MONEY TO THE C REDIT OF THE RAIL 7
AUTHORITY FUND IS SUBJECT TO TH E PROVISION OF THE A PPLICABLE BOND 8
AUTHORIZING RESOLUTI ON OR TRUST AGREEMEN T. 9
9–314. 10
WITHOUT IN ANY WAY LI MITING OR RESTRICTIN G ITS EFFECT OR 11
APPLICATION, THIS SUBTITLE IS INT ENDED TO AUTHORIZE T HE RAIL AUTHORITY 12
TO FINANCE ANY ONE O R MORE OR ANY COMBIN ATION OF RAILROAD FACILITIES 13
PROJECTS BY ANY ONE OR MORE OR COMBINATI ON OF ISSUES OR SER IES OF BONDS 14
SECURED BY THE PLEDG E OF THE NET OR GROS S OR ANY COMBINATION OF THE NET 15
OR GROSS RENTALS , RATES, FARES, FEES, AND OTHER CHARGES AN D REVENUES 16
DERIVED FROM ANY RAILROAD FACILITIES PROJECT O R COMBINATION OF 17
PROJECTS DESIGNATED BY ANY BOND AUTHORI ZING RESOLUTION OR T RUST 18
AGREEMENT SECURING T HE BONDS. 19
9–315. 20
ALL MONEY THAT IS REC EIVED BY THE RAIL AUTHORITY AS PROCEEDS FROM 21
THE SALE OF REVENUE BONDS, NOTES, OR OTHER EVIDENCES O F OBLIGATION 22
UNDER THIS SUBTITLE AND BY WAY OF RENTAL S, RATES, FARES, FEES, AND OTHER 23
CHARGES AND REVENUES DERIVED FROM ANY RAILROAD FACILITIES PROJECT O R 24
COMBINATION OF PROJE CTS AND THAT IS DESI GNATED BY ANY AUTHOR IZING 25
RESOLUTION OR TRUST AGREEMENT AS SECURIT Y FOR THE BONDS , NOTES, OR 26
OTHER EVIDENCES OF O BLIGATION SHALL BE DEEMED TO BE TRUST F UNDS TO BE 27
HELD AND APPLIED ONL Y AS PROVIDED IN THI S SUBTITLE. 28
9–316. 29
EXCEPT TO THE EXTENT RESTRICTED BY THE TR UST AGREEMENT , THE 30
TRUSTEE OR ANY HOLDE R OF REVENUE BONDS I SSUED UNDER THIS SUB TITLE OR 31
OF ANY OF THE COUPON S APPERTAINING TO THE BONDS MAY : 32
(1) BRING A SUIT , AN ACTION, A MANDAMUS , OR ANY OTHER 33
PROCEEDING AT LAW OR IN EQUITY TO PROTECT AND ENFORCE ANY RIGH T UNDER 34 26 HOUSE BILL 1324
THE LAWS OF TH E STATE OR UNDER THE BO ND AUTHORIZING RESOL UTION OR 1
TRUST AGREEMENT ; AND 2
(2) ENFORCE AND COMP EL THE PERFORMANCE O F ALL DUTIES 3
REQUIRED BY THIS SUB TITLE OR BY THE TRUS T AGREEMENT TO BE PE RFORMED BY 4
THE RAIL AUTHORITY OR BY ANY O F ITS OFFICERS , INCLUDING THE FIXING , 5
CHARGING, AND COLLECTING OF RE NTALS, RATES, FARES, FEES, AND OTHER 6
CHARGES AND REVEN UES. 7
9–317. 8
(A) ALL PUBLIC OFFICERS A ND PUBLIC AGENCIES O F THE STATE AND ITS 9
POLITICAL SUBDIVISIO NS, ALL BANKS, TRUST COMPANIES , SAVINGS AND LOAN 10
ASSOCIATIONS, INVESTMENT COMPANIES , AND OTHERS CARRYING ON A BANKING 11
BUSINESS, ALL INSURANCE COMPAN IES, INSURANCE ASSOCIATIO NS, AND OTHERS 12
CARRYING ON AN INSUR ANCE BUSINESS , ALL PERSONAL REPRESE NTATIVES, 13
GUARDIANS, TRUSTEES, AND OTHER FIDUCIARIE S, AND ALL OTHER PERSON S MAY 14
LEGALLY AND PROPERLY INVEST FUNDS, INCLUDING CAPITAL IN THEIR CONTROL 15
OR BELONGING TO THEM , IN REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF 16
OBLIGATION ISS UED UNDER THIS SUBTI TLE. 17
(B) THESE BONDS , NOTES, AND OTHER EVIDENCES OF OBLIGATION MAY 18
LEGALLY AND PROPERLY BE DEPOSITED WITH AN D RECEIVED BY ANY STATE OR 19
MUNICIPAL OFFICER OR ANY AGENCY OR POLITI CAL SUBDIVISION OF T HE STATE 20
FOR ANY PURPOSE FOR WHICH THE DEPOSIT OF BONDS O R OTHER OBLIGATIONS OF 21
THE STATE IS AUTHORIZED B Y LAW. 22
9–318. 23
THE REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF OBLIGATION 24
ISSUED UNDER THIS SU BTITLE, THEIR TRANSFER , THE INTEREST PAYABLE ON 25
THEM, AND ANY INCOME DERIV ED FROM THEM , INCLUDING ANY PROFIT REALIZED 26
IN THEIR SALE OR EXC HANGE, SHALL BE EXEMPT AT A LL TIMES FROM EVERY KIND 27
AND NATURE OF TAXATI ON BY TH E STATE OR BY ANY OF IT S POLITICAL 28
SUBDIVISIONS, OR PUBLIC AGENCIES O F ANY KIND. 29
9–319. 30
(A) THE REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF OB LIGATION 31
ISSUED UNDER THIS SU BTITLE ARE NOT AND M AY NOT BE CONSIDERED TO 32
CONSTITUTE A DEBT OR A PLEDGE OF THE FAIT H AND CREDIT OF THE STATE OF 33
MARYLAND, BUT SHALL BE PAYABLE ONLY FROM THE FUNDS FROM OR REVENUES 34
PROVIDED BY THIS SUB TITLE FOR THAT PURPOSE . 35 HOUSE BILL 1324 27
(B) ALL REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF OBLIGATION 1
ISSUED UNDER THIS SU BTITLE SHALL CONTAIN A STATEMENT ON THEIR FACE TO 2
THE EFFECT THAT : 3
(1) THE STATE IS NOT OBLIGATE D TO PAY THE PRINCIP AL OF OR THE 4
INTEREST ON THEM EX CEPT FROM REVENUES ; AND 5
(2) NEITHER THE FAITH AND CREDIT NOR THE TAXIN G POWER OF 6
THE STATE IS PLEDGED TO T HE PAYMENT OF THE PR INCIPAL OF OR THE IN TEREST 7
ON THEM. 8
9–320. 9
IF THE RAIL AUTHORITY INTENDS TO PLEDGE ANY FUTURE FE DERAL AID 10
FROM ANY SOURCE TO SUPPORT REPAYMENT OF ANY DEBT INSTRUMENT ISSUED 11
UNDER THIS SUBTITLE : 12
(1) THE AGGREGATE PRINCIP AL AMOUNT OF DEBT IS SUED UNDER 13
THIS SUBTITLE OR TITLE 3, SUBTITLE 6 OF THIS ARTICLE THAT IS SECURED BY A 14
PLEDGE OF FUTURE FED ERAL AID MAY NOT EXC EED $750,000,000; 15
(2) THE DATE OF MATURITY MAY NOT BE LATER THA N 12 YEARS 16
AFTER THE DATE OF IS SUE; 17
(3) NOTWITHSTANDING § 3–215(D) OF THIS ARTICLE , IF FUTURE 18
FEDERAL AID IS INSUF FICIENT TO PAY THE P RINCIPAL OF AND INTE REST ON THE 19
BONDS ISSUED UNDER T HIS SUBTITLE W HEN DUE, THE TAX LEVIED UNDER § 3–215 20
OF THIS ARTICLE , TO THE EXTENT THE PR OCEEDS OF SUCH TAX A RE NOT 21
NECESSARY TO PROVIDE THE SINKING FUND REQ UIRED UNDER § 3–215(C) OF THIS 22
ARTICLE, IS IRREVOCABLY PLEDG ED TO THE PAYMENT OF THE PRINCIPAL OF AND 23
INTEREST ON THE BONDS ISSUED UND ER THIS SUBTITLE AS THEY BECOME DUE AND 24
PAYABLE; 25
(4) THE LIEN OF THE PLEDG E UNDER ITEM (3) OF THIS SECTION 26
SHALL AT ALL TIMES B E SUBORDINATE TO THE LIEN OF THE PLEDGE O F SUCH TAX 27
UNDER § 3–215(D) OF THIS ARTICLE TO T HE PAYMENT OF PR INCIPAL OF AND 28
INTEREST ON CONSOLID ATED TRANSPORTATION BONDS; AND 29
(5) NO PART OF THE TAX LE VIED UNDER § 3–215 OF THIS ARTICLE 30
MAY BE REPEALED , DIMINISHED, OR APPLIED TO ANY OT HER PURPOSE UNTIL : 31
(I) THE BONDS ISSUED UNDE R THIS SUBTITLE AND INTEREST 32 28 HOUSE BILL 1324
ON THEM HAVE BECOME D UE AND FULLY PAID ; OR 1
(II) ADEQUATE AND COMPLETE PROVISION FOR PAYMEN T OF 2
THE PRINCIPAL AND IN TEREST HAS BEEN MADE . 3
9–321. 4
(A) THE RAIL AUTHORITY MAY ISSUE B OND ANTICIPATION NOT ES SECURED 5
BY A PLEDGE OF A LIN E OF CREDIT EXTENDED TO THE STATE UNDER THE FEDER AL 6
TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT. 7
(B) NOTES ISSUED UNDER TH IS SECTION SHALL HAV E A MATURITY DATE OF 8
UP TO 3 YEARS AFTER THE DATE OF ISSUE. 9
(C) A PLEDGE OF A LINE OF CREDIT AS AUTHORIZED UNDER THIS SECTION 10
DOES NOT CONSTITUTE THE PLEDGE OF FUTURE FEDERAL REVENUES , AND NOTES 11
ISSUED UNDER THIS SE CTION ARE NOT SUBJEC T TO § 3–601(D) OF THIS ARTICLE OR 12
§ 9–320 OF THIS SUBTITLE . 13
SUBTITLE 4. MISCELLANEOUS PROVISIONS. 14
9–401. 15
IF THE RAIL AUTHORITY CONSIDE RS IT NECESSARY OR D ESIRABLE TO 16
ENSURE THE PROPER OPERATION AND MAINTENANCE OF A NY RAILROAD FACILITIES 17
PROJECT, IT MAY DESIGNATE , ESTABLISH, LIMIT, AND CONTROL THE ENTR ANCES 18
AND EXITS OF THE PRO JECT AND MAY PROHIBI T ENTRANCE OR EXIT F ROM ANY 19
UNDESIGNATED P OINT. 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
1, 2022. 22