EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0946* SENATE BILL 946 R1 2lr3244 By: Senator Washington Introduced and read first time: February 13, 2022 Assigned to: Rules A BILL ENTITLED AN ACT concerning 1 Transportation – Highway User Revenue s – Distribution 2 FOR the purpose of altering the purposes for which certain county transportation bonds 3 may be issued; altering, beginning in a certain fiscal year, the amount of revenue 4 credited to the Gasoline and Motor Vehicle Revenue Account that may be used for a 5 certain purpose; altering, beginning in a certain fiscal year, the percentage of 6 highway user revenues required to be distributed to Baltimore City, counties, and 7 municipalities; altering the process for distributing highway user revenues; and 8 generally relating to the distribution of highway user revenues. 9 BY repealing and reenacting, with amendments, 10 Article – Transportation 11 Section 3–302, 8–401(d), 8–402, and 8–403 12 Annotated Code of Maryland 13 (2020 Replacement Volume and 2021 Supplement) 14 BY repealing and reenacting, without amendments, 15 Article – Transportation 16 Section 8–401(a) 17 Annotated Code of Maryland 18 (2020 Replacement Volume and 2021 Supplement) 19 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20 That the Laws of Maryland read as follows: 21 Article – Transportation 22 3–302. 23 The purposes of this subtitle are to enable the counties of this State to: 24 2 SENATE BILL 946 (1) Accelerate programs of road construction and reconstruction; 1 (2) Provide local participating funds for federally aided transportation 2 projects; 3 (3) Make major road repairs as necessary to eliminate damage caused to 4 county roads by severe and unforeseen weather conditions; [and] 5 (4) Generally finance the capital cost of transportation facilities; 6 (5) PROVIDE LOCAL PARTICI PATING FUNDS FOR STATE–AIDED 7 TRANSPORTATION PROJE CTS; AND 8 (6) PROVIDE FOR LOCAL CAPITAL IMPROVEMENT PROJECTS ALONG : 9 (I) STATE ROADWAYS MAINTA INED BY LOCAL GOVERN MENTS; 10 AND 11 (II) MARYLAND TRANSIT ADMINISTRATION PRIORI TY BUS 12 ROUTES. 13 8–401. 14 (a) In this subtitle the following words have the meanings indicated. 15 (d) “Highway user revenues” means the [capital grants appropriated to Baltimore 16 City, counties, and municipalities under § 8–403(b) of this subtitle] FUNDS CREDITED TO 17 THE GASOLINE AND MOTOR VEHICLE REVENUE ACCOUNT OF THE 18 TRANSPORTATION TRUST FUND. 19 8–402. 20 (a) There is a Gasoline and Motor Vehicle Revenue Account in the Transportation 21 Trust Fund. 22 (b) All revenues collected from the following, after deductions provided by law, 23 shall be credited to the Gasoline and Motor Vehicle Revenue Account: 24 (1) All of the motor vehicle fuel tax; 25 (2) Except as otherwise provided by law, two–thirds of the vehicle titling 26 tax; 27 (3) Except for revenues collected under Title 13, Subtitle 9, Parts III and 28 IV of this article, vehicle registration fees; 29 SENATE BILL 946 3 (4) The revenue disbursed to this Account under § 2–614 of the Tax – 1 General Article; and 2 (5) [80 percent] 80% of the funds distributed on short–term vehicle rentals 3 under § 2–1302.1 of the Tax – General Article to the Transportation Trust Fund from the 4 sales and use tax. 5 (c) (1) For fiscal year 2019: 6 (i) 90.4% of the revenue credited to the Account may be used as 7 provided in § 3–216 of this article; and 8 (ii) The balance of the Account shall be used to pay the allocations of 9 highway user revenues provided by this subtitle to the counties, municipalities, and 10 Baltimore City. 11 (2) For fiscal [year 2020 and each fiscal year thereafter,] YEARS 2020 12 THROUGH 2023, revenue credited to the Account shall be used as provided in § 3–216 of 13 this article. 14 (3) FOR FISCAL YEARS 2024 THROUGH 2026: 15 (I) 70% OF THE REVENUE CREDI TED TO THE ACCOUNT MAY BE 16 USED AS PROVIDED IN § 3–216 OF THIS ARTICLE; AND 17 (II) THE BALANCE OF THE ACCOUNT SHALL BE USED TO PAY 18 THE ALLOCATIONS OF H IGHWAY USER REVENUES PROVIDED BY THIS SUB TITLE TO 19 THE COUNTIES , MUNICIPALITIES , AND BALTIMORE CITY. 20 (4) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTE R: 21 (I) 80% OF THE REVENUE CREDI TED TO THE ACCOUNT MAY BE 22 USED AS PROVIDED IN § 3–216 OF THIS ARTICLE; AND 23 (II) THE BALANCE OF THE ACCOUNT SHALL BE USED TO PAY 24 THE ALLOCATIONS OF H IGHWAY USER REVENUES PROVIDED BY THIS SUB TITLE TO 25 THE COUNTIES , MUNICIPALITIES , AND BALTIMORE CITY. 26 8–403. 27 (a) Subject to §§ 3–307 and 3–308 of this article, for fiscal year 2019, from the 28 total highway user revenues: 29 (1) An amount equal to 7.7% of total highway user revenues shall be 30 distributed to Baltimore City in monthly installments; 31 4 SENATE BILL 946 (2) An amount shall be distributed to the counties at the times specified in 1 § 8–407 of this subtitle, to be allocated as provided in § 8–404 of this subtitle, equal to 1.5% 2 of total highway user revenues; and 3 (3) An amount shall be distributed to the municipalities at the times 4 specified in § 8–407 of this subtitle, to be allocated as provided in § 8–405 of this subtitle, 5 equal to 0.4% of total highway user revenues. 6 (b) (1) Subject to paragraph (3) of this subsection, for fiscal years 2020 through 7 [2024,] 2023, capital grants shall be appropriated from the Transportation Trust Fund as 8 provided in § 3–216 of this article based on the following calculations: 9 (i) An amount equal to 8.3% of funds credited to the Gasoline and 10 Motor Vehicle Revenue Account shall be appropriated to Baltimore City; 11 (ii) An amount equal to 3.2% of funds credited to the Gasoline and 12 Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as 13 provided in § 8–404 of this subtitle; and 14 (iii) An amount equal to 2.0% of funds credited to the Gasoline and 15 Motor Vehicle Revenue Account shall be appropriated to the municipalities to be 16 distributed as provided in § 8–405 of this subtitle. 17 (2) Subject to paragraph (3) of this subsection, for fiscal year 2025 and each 18 fiscal year thereafter, capital grants shall be appropriated from the Transportation Trust 19 Fund as provided in § 3–216 of this article based on the following calculations: 20 (i) An amount equal to 7.7% of funds credited to the Gasoline and 21 Motor Vehicle Revenue Account shall be appropriated to Baltimore City; 22 (ii) An amount equal to 1.5% of funds credited to the Gasoline and 23 Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as 24 provided in § 8–404 of this subtitle; and 25 (iii) An amount equal to 0.4% of funds credited to the Gasoline and 26 Motor Vehicle Revenue Account shall be appropriated to the municipalities to be 27 distributed as provided in § 8–405 of this subtitle. 28 (3) The capital grants made under this [subtitle] SUBSECTION shall be 29 appropriated only if all debt service requirements and departmental operating expenses 30 have been funded and sufficient funds are available to fund the capital program. 31 (C) SUBJECT TO §§ 3–307 AND 3–308 OF THIS ARTICLE, FOR FISCAL YEARS 32 2024 THROUGH 2026, FROM THE TOTAL HIGHW AY USER REVENUES : 33 SENATE BILL 946 5 (1) AN AMOUNT EQUAL TO 15% OF TOTAL HIGHWAY USE R REVENUES 1 SHALL BE DISTRIBUTED TO BALTIMORE CITY; 2 (2) AN AMOUNT SHALL BE DI STRIBUTED TO THE COU NTIES AT THE 3 TIMES SPECIFIED IN § 8–407 OF THIS SUBTITLE, TO BE ALLOCATED AS P ROVIDED IN 4 § 8–404 OF THIS SUBTITLE , EQUAL TO 10% OF TOTAL HIGHWAY USE R REVENUES; 5 AND 6 (3) AN AMOUNT SHALL BE DI STRIBUTED TO THE MUN ICIPALITIES AT 7 THE TIMES SPECIFIED IN § 8–407 OF THIS SUBTITLE , TO BE ALLOCATED AS 8 PROVIDED IN § 8–405 OF THIS SUBTITLE , EQUAL TO 5% OF TOTAL HIGHWAY USE R 9 REVENUES. 10 (D) SUBJECT TO §§ 3–307 AND 3–308 OF THIS ARTICLE , FOR FISCAL YEAR 11 2027 AND EACH FISCAL YEAR THEREAFTER , FROM THE TOTAL HIGHW AY USER 12 REVENUES: 13 (1) AN AMOUNT EQUAL TO 11.5% OF TOTAL HIGHWAY USE R 14 REVENUES SHALL BE DI STRIBUTED TO BALTIMORE CITY; 15 (2) AN AMOUNT SHALL BE DISTR IBUTED TO THE COUNTI ES AT THE 16 TIMES SPECIFIED IN § 8–407 OF THIS SUBTITLE, TO BE ALLOCATED AS P ROVIDED IN 17 § 8–404 OF THIS SUBTITLE , EQUAL TO 5.5% OF TOTAL HIGHWAY USE R REVENUES; 18 AND 19 (3) AN AMOUNT SHALL BE DI STRIBUTED TO THE MUN ICIPALITIES AT 20 THE TIMES SPECIFIED IN § 8–407 OF THIS SUBTITLE , TO BE ALLOCATED AS 21 PROVIDED IN § 8–405 OF THIS SUBTITLE , EQUAL TO 3% OF TOTAL HIGHWAY USE R 22 REVENUES. 23 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 24 1, 2022. 25