EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0151*
SENATE BILL 151
C8, R2 3lr0585
SB 516/22 – B&T CF HB 12
By: Senator Augustine
Introduced and read first time: January 16, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Equitable and Inclusive Transit–Oriented Development Enhancement Act 2
FOR the purpose of establishing the Transit–Oriented Development Capital Grant and 3
Revolving Loan Fund as a special, nonlapsing fund; requiring interest earnings of 4
the Fund to be credited to the Fund; authorizing the Department of Transportation 5
to use the Fund to provide financial assistance to local jurisdictions to be used for 6
certain purposes within a transit–oriented development; and generally relating to 7
transit–oriented development in the State. 8
BY repealing and reenacting, without amendments, 9
Article – Transportation 10
Section 7–101(a), (l), (m), and (o) 11
Annotated Code of Maryland 12
(2020 Replacement Volume and 2022 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Transportation 15
Section 7–102(a) 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2022 Supplement) 18
BY adding to 19
Article – Transportation 20
Section 7–103; and 7–1201 through 7–1205 to be under the new subtitle “Subtitle 12. 21
Transit–Oriented Development Capital Grant and Revolving Loan Fund” 22
Annotated Code of Maryland 23
(2020 Replacement Volume and 2022 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – State Finance and Procurement 26
Section 6–226(a)(2)(i) and 10–306(a) 27 2 SENATE BILL 151
Annotated Code of Maryland 1
(2021 Replacement Volume and 2022 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – State Finance and Procurement 4
Section 6–226(a)(2)(ii)170. and 171. and 10–306(c) 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2022 Supplement) 7
BY adding to 8
Article – State Finance and Procurement 9
Section 6–226(a)(2)(ii)172. 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2022 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Transportation 15
7–101. 16
(a) In this title the following words have the meanings indicated. 17
(l) “Transit facility” includes any one or more or combination of tracks, 18
rights–of–way, bridges, tunnels, subways, rolling stock, stations, terminals, ports, parking 19
areas, equipment, fixtures, buildings, structures, other real or personal property, and 20
services incidental to or useful or designed for use in connection with the rendering of 21
transit service by any means, including rail, bus, motor vehicle, or other mode of 22
transportation, but does not include any railroad facility. 23
(m) “Transit–oriented development” means a mix of private or public parking 24
facilities, commercial and residential structures, and uses, improvements, and facilities 25
customarily appurtenant to such facilities and uses, that: 26
(1) Is part of a deliberate development plan or strategy involving: 27
(i) Property that is adjacent to the passenger boarding and alighting 28
location of a planned or existing transit station; or 29
(ii) Property, any part of which is located within one–half mile of the 30
passenger boarding and alighting location of a planned or existing transit station; 31
(2) Is planned to maximize the use of transit, walking, and bicycling by 32
residents and employees; and 33
(3) Is designated as a transit–oriented development by: 34 SENATE BILL 151 3
(i) The Secretary, after considering a recommendation of the Smart 1
Growth Subcabinet established under § 9–1406 of the State Government Article; and 2
(ii) The local government or multicounty agency with land use and 3
planning responsibility for the relevant area. 4
(o) (1) “Transit station” means any facility, the primary function of which 5
relates to the boarding and alighting of passengers from transit vehicles. 6
(2) “Transit station” includes platforms, shelters, passenger waiting 7
facilities, parking areas, access roadways, and other real property used to facilitate 8
passenger access to transit service or railroad service. 9
7–102. 10
(a) (1) (I) The development of improved and expanded railroad facilities, 11
railroad services, transit facilities, and transit services operating as a unified and 12
coordinated regional transportation system, and the realization of transit–oriented 13
development throughout the State, represent transportation purposes that are essential for 14
the satisfactory movement of people and goods, the alleviation of present and future traffic 15
congestion, the economic welfare and vitality, and the development of the metropolitan area 16
of Baltimore and other political subdivisions of the State. 17
(II) IN ORDER TO REALIZE T RANSIT–ORIENTED DEVELOPMENT 18
AS A TRANSPORTATION PURPOSE, IT IS THE INTENT OF THE GENERAL ASSEMBLY 19
THAT THE DEPARTMENT MAKE ALL R EASONABLE ATTEMPTS T O INCLUDE 20
TRANSIT–ORIENTED DEVELOPMENT AS PART OF THE PREFE RRED PLAN FOR 21
DEVELOPMENT IN AREAS SERVED BY TRANSIT SE RVICES BY PROVIDING 22
PREFERENCE TO PROPOS ALS THAT FURTHER THI S PURPOSE WHEN : 23
1. DISTRIBUTING FUNDS FROM : 24
A. STATE PROGRAMS OFFERI NG GRANTS AND LOANS 25
FOR DEVELOPMENT AND INFRASTRUCTURE INVES TMENT; 26
B. FEDERAL COMMUNITY DEV ELOPMENT BLOCK 27
GRANTS; AND 28
C. THE PROCEEDS OF GENER AL OBLIGATION BOND A ND 29
GRANT ANTICIPATION R EVENUE VEHICLE ISSUANCES; AND 30
2. AWARDING STATE TAX CREDITS . 31
(2) The establishment of the realization of transit–oriented development as 32 4 SENATE BILL 151
a transportation purpose under paragraph (1) of this subsection may not be construed to: 1
(i) Limit the authority of local governments to govern land use as 2
established under any other law; or 3
(ii) Grant the State or a department of the State additional authority 4
to supersede local land use and planning authority. 5
7–103. 6
(A) ON OR BEFORE NOVEMBER 30, 2024, AND ON OR BEF ORE NOVEMBER 7
30 EACH YEAR THEREAFTER , THE SECRETARY SHALL SUBMI T A REPORT TO THE 8
GENERAL ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT 9
ARTICLE ON EFFORTS TO INCREASE TRANSIT –ORIENTED DEVELOPMENT 10
THROUGHOUT THE STATE. 11
(B) THE REPORT SHALL INCLUDE AN ANALYSIS OF THE FOLLOWING ISS UES 12
FOR EACH TRANSIT –ORIENTED DEVELOPMENT IN THE STATE: 13
(1) THE DEMOGRAPHIC AND S OCIOECONOMIC INDICAT ORS PRESENT 14
IN THE TRANSIT–ORIENTED DEVELOPMENT AND THE SURROUNDING AREAS; 15
(2) DEVELOPMENT ACTIVITY OCCURRIN G IN THE 16
TRANSIT–ORIENTED DEVELOPMENT DURING THE PERIOD TH AT THE REPORT 17
COVERS; AND 18
(3) TRANSIT STATION UTILI ZATION RATES FOR THE 19
TRANSIT–ORIENTED DEVELOPMENT . 20
(C) THE DEPARTMENT SHALL CONS IDER THE FINDINGS OF THE REPORT 21
REQUIRED UNDER THIS SECTION FOR PURPOSES OF UPDA TING THE SCORING 22
STANDARDS FOR APPLIC ATIONS FOR FINANCIAL ASSISTANCE FROM THE 23
TRANSIT–ORIENTED DEVELOPMENT CAPITAL GRANT AND REVOLVING LOAN 24
FUND ESTABLISHED UNDE R SUBTITLE 12 OF THIS TITLE. 25
SUBTITLE 12. TRANSIT–ORIENTED DEVELOPMENT CAPITAL GRANT AND 26
REVOLVING LOAN FUND. 27
7–1201. 28
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 29
INDICATED. 30
(B) “FINANCIAL ASSISTANCE ” MEANS A GRANT OR LOA N FROM THE FUND. 31 SENATE BILL 151 5
(C) “FUND” MEANS THE TRANSIT–ORIENTED DEVELOPMENT CAPITAL 1
GRANT AND REVOLVING LOAN FUND. 2
(D) “GAP FUNDING” MEANS FUNDING PROVID ED TO COMPENSATE FOR A 3
SHORTFALL BETWEEN TH E EXPECTED DEVELOPME NT COSTS OF A PROJEC T AND 4
THE AVAILABLE FUNDS FOR THE PROJECT . 5
(E) “LOCAL JURISDICTION ” MEANS A COUNTY OR A MUNICIPAL 6
CORPORATION . 7
(F) “MUNICIPAL CORPORATION ” MEANS A MUNICIPALITY AS DEFINED IN § 8
1–101 OF THE LOCAL GOVERNMENT ARTICLE. 9
7–1202. 10
(A) THERE IS A TRANSIT–ORIENTED DEVELOPMENT CAPITAL GRANT AND 11
REVOLVING LOAN FUND. 12
(B) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO 13
§ 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 14
7–1203. 15
(A) THE PURPOSE OF THE FUND IS TO PROMOTE TH E EQUITABLE AND 16
INCLUSIVE DEVELOPMEN T OF TRANSIT–ORIENTED DEVELOPMENT S THROUGHOUT 17
THE STATE. 18
(B) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , AND THE 19
COMPTROLLER SHALL ACC OUNT FOR THE FUND. 20
(C) (1) THE FUND CONSISTS OF : 21
(I) MONEY APPROPRIATED IN THE STATE BUDGET TO THE 22
FUND; 23
(II) MONEY MADE AVAILABLE FOR QUALIFYING USES BY THE 24
FUND FROM OTHER GOVER NMENTAL SOURCES , INCLUDING COMMUNITY 25
DEVELOPMENT BLOCK GR ANTS AND THE TRANSPORTATION TRUST FUND; 26
(III) GROUND RENTS OR LAND SALE PROCEEDS IN ACC ORDANCE 27
WITH § 10–306(C)(2) OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 28
6 SENATE BILL 151
(IV) PAYMENTS OF PRINCIPAL OF AND INTEREST ON L OANS 1
MADE UNDER THIS TITL E; 2
(V) INVESTMENT EARNINGS O F THE FUND; AND 3
(VI) ANY OTHER MONEY FROM ANY OTHER SOURCE , PUBLIC OR 4
PRIVATE, ACCEPTED FOR THE BEN EFIT OF THE FUND. 5
(2) CONTRIBUTIONS TO THE FUND UNDER PARAGRAPH (1)(III) OF 6
THIS SUBSECTION S HALL: 7
(I) BE SEPARATELY ACCOUNT ED FOR IN THE FUND; AND 8
(II) BE USED ONLY FOR THE BENEFIT OF TRANSIT –ORIENTED 9
DEVELOPMENTS IN THE SAME COUNTY WHERE TH E REAL PROPERTY SUBJ ECT TO 10
THE GROUND RENT OR L AND SALE IS LOCATED . 11
(D) FOR EACH FISCAL YEAR , THE GOVERNOR SHALL INCLUD E IN THE 12
ANNUAL BUDGET BILL A N APPROPRIATION SUFF ICIENT TO ENSURE A FUND 13
BALANCE OF AT LEAST $10,000,000 AT THE START OF THE FISCAL YEAR. 14
7–1204. 15
(A) (1) THE FUND MAY BE USED BY T HE DEPARTMENT TO PROVIDE 16
FINANCIAL ASSISTANCE TO LOCAL JURISDICTIONS FOR : 17
(I) DESIGN PLANS FOR A TR ANSIT–ORIENTED DEVELOPMENT , 18
PROVIDED THAT THE TR ANSIT–ORIENTED DEVELOPMENT WILL BE DESIGNED TO 19
MEET EQUITY GOALS ES TABLISHED BY THE DEPARTMENT ; 20
(II) PUBLIC INFRASTRUCTURE IMPROVEMENTS WITHIN A 21
TRANSIT–ORIENTED DEVELOPMENT ; OR 22
(III) GAP FUNDING FOR PUBLI C OR PRIVATE DEVELOP MENT 23
WITHIN A TRANSIT –ORIENTED DEVELOPMENT . 24
(2) A PRIVATE ENTITY , INCLUDING A NONPROFI T ENTITY, 25
PARTICIPATING IN THE DEVELOPMENT OF A TRA NSIT–ORIENTED DEVELOPMENT 26
MAY PARTNER WITH A LOCAL J URISDICTION TO SUBMI T AN APPLICATION FOR 27
FINANCIAL ASSISTANCE UNDER PARAGRAPH (1)(III) OF THIS SUBSECTION . 28
(B) (1) THE DEPARTMENT SHALL : 29
SENATE BILL 151 7
(I) ESTABLISH ELIGIBILITY REQUIREMENTS AND SCO RING 1
STANDARDS FOR THE RE VIEW OF APPLICATIONS FOR FINANCIAL ASSISTA NCE; AND 2
(II) PUBLISH THE ELIGIBILI TY REQUIREMENTS AND SCORING 3
STANDARDS ON THE DEPARTMENT ’S WEBSITE. 4
(2) THE DEPARTMENT MAY ESTABL ISH: 5
(I) DIFFERENT ELIGIBILITY REQUIREMENTS AND SCO RING 6
STANDARDS FOR DIFFER ENT TYPES OF FINANCIAL ASSISTANCE ; AND 7
(II) SCORING PREFERENCES F OR APPLICATIONS THAT 8
DEMONSTRATE THAT THE PROPOSED PROJECT WIL L: 9
1. ENHANCE ACCESS TO TRA NSIT FOR LOW –INCOME 10
AND MINORITY RESIDEN TS OF THE LOCAL JURI SDICTION; 11
2. ENHANCE ACCESS TO TRA NSIT IN AREAS WITH 12
AFFORDABLE HOUSING A ND A DIVERSITY OF JO B AND EDUCATIONAL 13
OPPORTUNITIES ; OR 14
3. ENCOURAGE DEVELOPMENT AROUND 15
UNDERDEVELOPED AND U NDERUTILIZED TRANSIT STATIONS IN 16
TRANSIT–ORIENTED DEVELOPMENT S. 17
(C) AN APPLICATION FOR FI NANCIAL ASSISTANCE SHALL INCLUDE : 18
(1) COMMITMENTS FROM THE LOCAL JURISDICTION T O: 19
(I) ESTABLISH TRANSIT –SUPPORTIVE LAND USE 20
DESIGNATIONS FOR REA L PROPERTY WITHIN A TRANSIT–ORIENTED DEVELOPMENT ; 21
AND 22
(II) IMPLEMENT , WHERE PRACTICABLE , IMPROVEMENTS TO 23
THE TRANSIT–ORIENTED DEVELOPMENT THAT PROMOTE THE COM PLETE STREETS 24
POLICY ADOPTED IN AC CORDANCE WITH § 2–112 OF THIS ARTICLE; 25
(2) IF A PRIVATE ENTITY P ARTNERS WITH A LOCAL JURISDICTION TO 26
SUBMIT AN APPLICATIO N FOR FINANCIAL ASSI STANCE, COMMITMENTS FROM KEY 27
STAKEHOLDERS TO DEVE LOP THE TRANSIT –ORIENTED DEVELOPMENT ; AND 28
(3) IF THE APPLICATION IS FOR A GRANT TO SUPPO RT THE DESIGN 29
OR CONSTRUCTION OF A PROPOSED ENHANCEMENT TO A TRANSIT –ORIENTED 30 8 SENATE BILL 151
DEVELOPMENT , CREDIBLE FUNDING STR ATEGIES THAT DEMONST RATE FULL 1
FUNDING OF THE DESIGN OR CONSTRUCTION COSTS F OR THE PROPOSED 2
ENHANCEMENT ON AWARD OF THE GRANT. 3
7–1205. 4
(A) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 5
THE SAME MANNER AS O THER STATE MONEY MAY BE IN VESTED. 6
(B) ANY INVESTMENT EARNIN GS OF THE FUND SHALL BE PAID IN TO THE 7
FUND. 8
Article – State Finance and Procurement 9
6–226. 10
(a) (2) (i) Notwithstanding any other provision of law, and unless 11
inconsistent with a federal law, grant agreement, or other federal requirement or with the 12
terms of a gift or settlement agreement, net interest on all State money allocated by the 13
State Treasurer under this section to special funds or accounts, and otherwise entitled to 14
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 15
Fund of the State. 16
(ii) The provisions of subparagraph (i) of this paragraph do not apply 17
to the following funds: 18
170. the Cannabis Public Health Fund; [and] 19
171. the Community Reinvestment and Repair Fund; AND 20
172. THE TRANSIT–ORIENTED DEVELOPMENT CAPITAL 21
GRANT AND REVOLVING LOAN FUND. 22
10–306. 23
(a) In this section, “capital asset” means an asset of a substantial permanent 24
nature. 25
(c) (1) Except as provided in paragraphs (2) and (3) of this subsection, if cash 26
is received as consideration for the disposition of a capital asset of the State or any unit of 27
the State government, the cash shall be applied to the State Annuity Bond Fund Account 28
for the payment of the principal of and interest on the bonded indebtedness of the State. 29
(2) If the capital asset is real property that is being leased or sold to a 30
private party for the purpose of realizing a transit–oriented development as defined under 31
§ 7–101 of the Transportation Article, at the discretion of the State agency that is disposing 32 SENATE BILL 151 9
of the property, all or a portion of the cash proceeds resulting from the transaction shall be 1
deposited in: 2
(I) the Baltimore City Community Enhancement Transit–Oriented 3
Development Fund established under Title 15 of the Economic Development Article for the 4
purposes of that Fund; OR 5
(II) THE TRANSIT–ORIENTED DEVELOPMENT CAPITAL GRANT 6
AND REVOLVING LOAN FUND ESTABLISHED UNDE R TITLE 7 OF THE 7
TRANSPORTATION ARTICLE FOR THE PURPO SES OF THAT FUND. 8
(3) (i) If cash is received as consideration for the disposition of a capital 9
asset, and if the capital asset was originally purchased with special funds, the cash shall 10
be applied to the special fund. 11
(ii) Notwithstanding subparagraph (i) of this paragraph, cash 12
received as consideration for the disposition of helicopters, auxiliary helicopter equipment, 13
ground support equipment, or other capital equipment related to helicopters shall be 14
applied to the State Annuity Bond Fund Account for the payment of the principal of and 15
interest on the bonded indebtedness of the State. 16
(4) If cash is received as consideration for the disposition of any real or 17
personal property of the State or any unit of the State government, other than a capital 18
asset, the cash shall be accounted for and paid into the State Treasury. 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2023. 21