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.
*hb0438*
HOUSE BILL 438
R2, B1, B5 2lr0566
CF SB 463
By: Delegate Korman
Introduced and read first time: January 20, 2022
Assigned to: Appropriations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 8, 2022
CHAPTER ______
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
2 HOUSE BILL 438
(f) (1) Except as provided in paragraph (2) of this subsection, the Governor 1
shall include an appropriation in the annual budget of at least the amount specified in 2
paragraph (4) of this subsection for the sole purpose of providing grants to the Washington 3
Suburban Transit District to pay the capital costs of the Washington Metropolitan Area 4
Transit Authority. 5
(2) (i) The Governor is not required to make the appropriation under 6
paragraph (1) of this subsection in a fiscal year unless the Department certifies to the 7
Governor in writing before the beginning of the immediately preceding fiscal year that the 8
Washington Metropolitan Area Transit Authority has submitted to the Department: 9
1. Performance and condition assessments and reports 10
regarding: 11
A. The safety and reliability of rapid heavy rail and bus 12
systems; 13
B. The financial performance of the Washington 14
Metropolitan Area Transit Authority as it relates to rail and bus operations, including fare 15
box recovery, service per rider, and cost per service hour; 16
C. The monthly ridership of rail and bus systems broken 17
down by Metrorail station, Metrorail line, bus route, and bus line; 18
D. Strategies to reduce costs and improve the Washington 19
Metropolitan Area Transit Authority’s operational efficiency; and 20
E. The comparison of annual capital investments and 21
approved budgets; and 22
2. The Washington Metropolitan Area Transit Authority’s: 23
A. Annual budget; 24
B. Annual independent financial audit; 25
C. Annual National Transit Database profile; and 26
D. Single audit reports issued in accordance with the 27
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for 28
Federal Awards under 2 C.F.R. Part 200. 29
(ii) If the Commonwealth of Virginia or the District of Columbia 30
reduce the amount of dedicated capital funding for the Washington Metropolitan Area 31
Transit Authority, the Governor may reduce the appropriation under paragraph (1) of this 32
subsection by a proportional amount. 33
HOUSE BILL 438 3
(iii) 1. The Governor shall withhold 35% of the appropriation 1
under paragraph (1) of this subsection if: 2
A. The Washington Metropolitan Area Transit Authority has 3
received a modified audit opinion as a result of an annual independent audit conducted in 4
accordance with Article XVI, Section 70 of the Washington Metropolitan Area Transit 5
Authority Compact under § 10–204 of this subtitle; and 6
B. The Department has not certified to the Governor in 7
writing before the beginning of the immediately preceding fiscal year that the Washington 8
Metropolitan Area Transit Authority has submitted in writing to the board of directors of 9
the Washington Metropolitan Area Transit Authority and the Maryland General Assembly 10
a satisfactory corrective plan that addresses the reasons for the modified audit opinion. 11
2. The Governor shall release the portion of the 12
appropriation withheld under subsubparagraph 1 of this subparagraph if the Washington 13
Metropolitan Area Transit Authority submits in writing to the board of directors of the 14
Washington Metropolitan Area Transit Authority and, in accordance with § 2–1257 of the 15
State Government Article, the Maryland General Assembly a satisfactory corrective action 16
plan that addresses the reasons for the modified audit opinion. 17
(3) The Governor shall make the appropriation under paragraph (1) of this 18
subsection from the Transportation Trust Fund. 19
(4) [(i) For the first fiscal year in which the mandated appropriation 20
under this subsection applies, the] THE appropriation under paragraph (1) of this 21
subsection shall equal at least the amount appropriated in the fiscal year [2019] 2022 22
2026 State budget as enacted for the Washington Suburban Transit District to pay the 23
capital costs of the Washington Metropolitan Area Transit Authority. 24
[(ii) For each fiscal year after the first fiscal year in which the 25
mandated appropriation under this subsection applies, the appropriation under paragraph 26
(1) of this subsection shall be equal to the amount of the appropriation for the preceding 27
fiscal year increased by 3%.] 28
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 29
as follows: 30
Article – Transportation 31
10–205. 32
(g) (1) (I) [The] FOR FISCAL YEAR 2024 2027, THE Governor shall 33
include in the State budget an appropriation for the purposes specified under paragraph 34
(2) of this subsection of $167,000,000 from the revenues available for the State capital 35
program in the Transportation Trust Fund. 36 4 HOUSE BILL 438
(II) FOR FISCAL Y EAR 2025 2028 AND EACH FISCAL YEAR 1
THEREAFTER , THE GOVERNOR SHALL INCLUD E IN THE STATE BUDGET AN 2
APPROPRIATION FOR TH E PURPOSES SPECIFIED UNDER PARAGRAPH (2) OF THIS 3
SUBSECTION EQUAL TO THE AMOUNT OF THE AP PROPRIATION FOR THE PRECEDING 4
FISCAL YEAR INCREASE D BY 3%. 5
(2) The Department shall provide an annual grant [of at least 6
$167,000,000] EQUAL TO THE APPROPR IATION REQUIRED UNDE R PARAGRAPH (1) OF 7
THIS SUBSECTION to the Washington Suburban Transit District to be used only to pay the 8
capital costs of the Washington Metropolitan Area Transit Authority. 9
(3) The grant required under paragraph (2) of this subsection is in addition 10
to the appropriation required under subsection (f)(1) of this section. 11
SECTION 3. AND BE IT FURTHER ENACTED, That: 12
(a) Section 2 of this Act may not take effect until similar Acts are passed by the 13
Commonwealth of Virginia and the District of Columbia. 14
(b) The Commonwealth of Virginia and the District of Columbia are requested to 15
concur in this Act of the General Assembly by the passage of substantially similar Acts. 16
(c) The Department of Legislative Services shall notify the appropriate officials 17
of the Commonwealth of Virginia, the District of Columbia, and the United States Congress 18
of the passage of this Act. 19
(d) On concurrence in this Act by the Commonwealth of Virginia, the District of 20
Columbia, and the United States Congress, the Governor of the State of Maryland shall 21
issue a proclamation declaring Section 2 of this Act valid and effective and shall forward a 22
copy of the proclamation to the Executive Director of the Department of Legislative 23
Services. 24
SECTION 4. AND BE IT FURTHER ENACTED, That, subject to Section 3 of this 25
Act, this Act shall take effect June 1, 2022. 26