EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0438*
HOUSE BILL 438
R2, B1, B5 2lr0566
CF 2lr1405
By: Delegate Korman
Introduced and read first time: January 20, 2022
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Washington Metropolitan Area Transit Authority – Funding Formulas – 2
Alteration 3
(WMATA Dedicated Funding Amendment Act of 2022 ) 4
FOR the purpose of altering the amount of a certain appropriation the Governor is required 5
to make for the Washington Suburban Transit District; repealing a requirement that 6
a certain mandated appropriation be increased by a certain percentage each year; 7
requiring, subject to a certain contingency, that a certain mandated appropriation 8
be increased by a certain percentage each year; and generally relating to funding for 9
the Washington Metropolitan Area Transit Authority. 10
BY repealing and reenacting, with amendments, 11
Article – Transportation 12
Section 10–205(f) and (g) 13
Annotated Code of Maryland 14
(2020 Replacement Volume and 2021 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Transportation 18
10–205. 19
(f) (1) Except as provided in paragraph (2) of this subsection, the Governor 20
shall include an appropriation in the annual budget of at least the amount specified in 21
paragraph (4) of this subsection for the sole purpose of providing grants to the Washington 22
Suburban Transit District to pay the capital costs of the Washington Metropolitan Area 23
Transit Authority. 24
2 HOUSE BILL 438
(2) (i) The Governor is not required to make the appropriation under 1
paragraph (1) of this subsection in a fiscal year unless the Department certifies to the 2
Governor in writing before the beginning of the immediately preceding fiscal year that the 3
Washington Metropolitan Area Transit Authority has submitted to the Department: 4
1. Performance and condition assessments and reports 5
regarding: 6
A. The safety and reliability of rapid heavy rail and bus 7
systems; 8
B. The financial performance of the Washington 9
Metropolitan Area Transit Authority as it relates to rail and bus operations, including fare 10
box recovery, service per rider, and cost per service hour; 11
C. The monthly ridership of rail and bus systems broken 12
down by Metrorail station, Metrorail line, bus route, and bus line; 13
D. Strategies to reduce costs and improve the Washington 14
Metropolitan Area Transit Authority’s operational efficiency; and 15
E. The comparison of annual capital investments and 16
approved budgets; and 17
2. The Washington Metropolitan Area Transit Authority’s: 18
A. Annual budget; 19
B. Annual independent financial audit; 20
C. Annual National Transit Database profile; and 21
D. Single audit reports issued in accordance with the 22
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for 23
Federal Awards under 2 C.F.R. Part 200. 24
(ii) If the Commonwealth of Virginia or the District of Columbia 25
reduce the amount of dedicated capital funding for the Washington Metropolitan Area 26
Transit Authority, the Governor may reduce the appropriation under paragraph (1) of this 27
subsection by a proportional amount. 28
(iii) 1. The Governor shall withhold 35% of the appropriation 29
under paragraph (1) of this subsection if: 30
A. The Washington Metropolitan Area Transit Authority has 31
received a modified audit opinion as a result of an annual independent audit conducted in 32 HOUSE BILL 438 3
accordance with Article XVI, Section 70 of the Washington Metropolitan Area Transit 1
Authority Compact under § 10–204 of this subtitle; and 2
B. The Department has not certified to the Governor in 3
writing before the beginning of the immediately preceding fiscal year that the Washington 4
Metropolitan Area Transit Authority has submitted in writing to the board of directors of 5
the Washington Metropolitan Area Transit Authority and the Maryland General Assembly 6
a satisfactory corrective plan that addresses the reasons for the modified audit opinion. 7
2. The Governor shall release the p ortion of the 8
appropriation withheld under subsubparagraph 1 of this subparagraph if the Washington 9
Metropolitan Area Transit Authority submits in writing to the board of directors of the 10
Washington Metropolitan Area Transit Authority and, in accordance with § 2–1257 of the 11
State Government Article, the Maryland General Assembly a satisfactory corrective action 12
plan that addresses the reasons for the modified audit opinion. 13
(3) The Governor shall make the appropriation under paragraph (1) of this 14
subsection from the Transportation Trust Fund. 15
(4) [(i) For the first fiscal year in which the mandated appropriation 16
under this subsection applies, the] THE appropriation under paragraph (1) of this 17
subsection shall equal at least the amount appropriated in the fiscal year [2019] 2022 State 18
budget as enacted for the Washington Suburban Transit District to pay the capital costs of 19
the Washington Metropolitan Area Transit Authority. 20
[(ii) For each fiscal year after the first fiscal year in which the 21
mandated appropriation under this subsection applies, the appropriation under paragraph 22
(1) of this subsection shall be equal to the amount of the appropriation for the preceding 23
fiscal year increased by 3%.] 24
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws o f Maryland read 25
as follows: 26
Article – Transportation 27
10–205. 28
(g) (1) (I) [The] FOR FISCAL YEAR 2024, THE Governor shall include in 29
the State budget an appropriation for the purposes specified under paragraph (2) of this 30
subsection of $167,000,000 from the revenues available for the State capital program in the 31
Transportation Trust Fund. 32
(II) FOR FISCAL Y EAR 2025 AND EACH FISCAL YEAR 33
THEREAFTER , THE GOVERNOR SHALL INCLUDE IN THE STATE BUDGET AN 34
APPROPRIATION FOR THE PURPOSES SPE CIFIED UNDER PARAGRA PH (2) OF THIS 35 4 HOUSE BILL 438
SUBSECTION EQUAL TO THE AMOUNT OF THE APPROPRIATION FOR THE PRECEDING 1
FISCAL YEAR INCREASE D BY 3%. 2
(2) The Department shall provide an annual grant [of at least 3
$167,000,000] EQUAL TO THE APPROPR IATION REQUIRED UNDE R PARAGRAPH (1) OF 4
THIS SUBSECTION to the Washington Suburban Transit District to be used only to pay the 5
capital costs of the Washington Metropolitan Area Transit Authority. 6
(3) The grant required under paragraph (2) of this subsection is in addition 7
to the appropriation required under subsection (f)(1) of this section. 8
SECTION 3. AND BE IT FURTHER ENACTED, That : 9
(a) Section 2 of this Act may not take effect until similar Acts are passed by the 10
Commonwealth of Virginia and the District of Columbia. 11
(b) The Commonwealth of Virginia and the District of Columbia are requested to 12
concur in this Act of the General Assembly by the passage of substantially similar Acts. 13
(c) The Department of Legislative Services shall notify the appropriate officials 14
of the Commonwealth of Virginia, the District of Columbia, and the United States Congress 15
of the passage of this Act. 16
(d) On concurrence in this Act by the Commonwealth of Virginia, the District of 17
Columbia, and the United States Congress, the Governor of the State of Maryland shall 18
issue a proclamation declaring Section 2 of this Act valid and effective and shall forward a 19
copy of the proclamation to the Executive Director of the Department of Legislative 20
Services. 21
SECTION 4. AND BE IT FURTHER ENACTED, That , subject to Section 3 of this 22
Act, this Act shall take effect June 1, 2022. 23