Maryland 2023 2023 Regular Session

Maryland Senate Bill SB151 Engrossed / Bill

Filed 04/05/2023

                     
 
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. 
          *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 
Committee Report: Favorable with amendments 
Senate action: Adopted 
Read second time: March 23, 2023 
 
CHAPTER ______ 
 
AN ACT concerning 1 
 
Equitable and Inclusive Transit–Oriented Development Enhancement Act 2 
 
FOR the purpose of repealing the authority of the Secretary of Transportation to designate 3 
a transit–oriented development; establishing the Transit–Oriented Development 4 
Capital Grant and Revolving Loan Fund as a special, nonlapsing fund; requiring 5 
interest earnings of the Fund to be credited to the Fund; authorizing the Department 6 
of Transportation to use the Fund to provide financial assistance to local jurisdictions 7 
to be used for certain purposes within a transit–oriented development; and generally 8 
relating to transit–oriented development in the State. 9 
 
BY repealing and reenacting, without amendments, 10 
 Article – Transportation 11 
 Section 7–101(a), (l), (m), and (o) 12 
 Annotated Code of Maryland 13 
 (2020 Replacement Volume and 2022 Supplement) 14 
 
BY repealing and reenacting, with amendments, 15 
 Article – Transportation 16 
Section 7–102(a) 17 
 Annotated Code of Maryland 18 
 (2020 Replacement Volume and 2022 Supplement) 19 
 
BY adding to 20 
 Article – Transportation 21  2 	SENATE BILL 151  
 
 
Section 7–101(l) and 7–103; and 7–1201 through 7–1205 to be under the new subtitle 1 
“Subtitle 12. Transit–Oriented Development Capital Grant and Revolving 2 
Loan Fund” 3 
 Annotated Code of Maryland 4 
 (2020 Replacement Volume and 2022 Supplement) 5 
 
BY repealing and reenacting, with amendments, 6 
 Article – Transportation 7 
 Section 7–101(l) through (p) and 7–102(a) 8 
 Annotated Code of Maryland 9 
 (2020 Replacement Volume and 2022 Supplement)  10 
 
BY repealing and reenacting, without amendments, 11 
 Article – State Finance and Procurement 12 
Section 6–226(a)(2)(i) and 10–306(a) 13 
 Annotated Code of Maryland 14 
 (2021 Replacement Volume and 2022 Supplement) 15 
 
BY repealing and reenacting, with amendments, 16 
 Article – State Finance and Procurement 17 
Section 6–226(a)(2)(ii)170. and 171. and 10–306(c) 18 
 Annotated Code of Maryland 19 
 (2021 Replacement Volume and 2022 Supplement) 20 
 
BY adding to 21 
 Article – State Finance and Procurement 22 
Section 6–226(a)(2)(ii)172. 23 
 Annotated Code of Maryland 24 
 (2021 Replacement Volume and 2022 Supplement) 25 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26 
That the Laws of Maryland read as follows: 27 
 
Article – Transportation 28 
 
7–101. 29 
 
 (a) In this title the following words have the meanings indicated. 30 
 
 (L) (1) “TRANSIT CORRIDOR ” MEANS A GEOGRAPHICAL LY BOUND SET OF 31 
TWO OR MORE CON TIGUOUS SUBWAY , LIGHT RAIL, BUS RAPID TRANSIT , OR BUS 32 
TRANSIT STATIONS . 33 
 
 (2) “TRANSIT CORRIDOR ” INCLUDES A GEOGRAPHI CALLY BOUND SET 34 
OF TWO OR MORE CONTI GUOUS BUS TRANSIT ST ATIONS THAT HAVE FIX ED–ROUTE 35 
BUS SERVICE THAT OPE RATES ON A ROADWAY D EDICATED TO B USES.  36   	SENATE BILL 151 	3 
 
 
 
 (l) (M)  “Transit facility” includes any one or more or combination of tracks,  1 
rights–of–way, bridges, tunnels, subways, rolling stock, stations, terminals, ports, parking 2 
areas, equipment, fixtures, buildings, structures, other real or personal property, and 3 
services incidental to or useful or designed for use in connection with the rendering of 4 
transit service by any means, including rail, bus, motor vehicle, or other mode of 5 
transportation, but does not include any railroad facility. 6 
 
 (m) (N) “Transit–oriented development” means a mix of private or public 7 
parking facilities, commercial and residential structures, and uses, improvements, and 8 
facilities customarily appurtenant to such facilities and uses, that: 9 
 
 (1) Is part of a deliberate development plan or strategy involving: 10 
 
 (i) Property that is adjacent to the passenger boarding and alighting 11 
location of a planned or existing transit station; or 12 
 
 (ii) Property, any part of which is located within one–half mile of the 13 
passenger boarding and alighting location of a planned or existing transit station; OR 14 
 
 (III) PROPERTY THAT IS ADJA CENT TO A PLANNED OR EXISTING 15 
TRANSIT CORRIDOR ; 16 
 
 (2) Is planned to maximize the use of transit, walking, and bicycling by 17 
residents and employees; and 18 
 
 (3) Is designated as a transit–oriented development by: 19 
 
 (i) The Secretary, after considering a recommendation of the Smart 20 
Growth Subcabinet established under § 9–1406 of the State Government Article; and 21 
 
 (ii) The local government or multicounty agency with land use and 22 
planning responsibility for the relevant area APPLYING FOR DESIGNA TION. 23 
 
 [(n)] (O) (1) “Transit service” means the transportation of persons and their 24 
packages and baggage and of newspapers, express, and mail in regular route, special, or 25 
charter service by means of transit facilities between points within the District. 26 
 
 (2) “Transit service” does not include any: 27 
 
 (i) Vanpool operation; or 28 
 
 (ii) Railroad service.  29 
 
 (o) (P)  (1) “Transit station” means any facility, the primary function of 30 
which relates to the boarding and alighting of passengers from transit vehicles. 31  4 	SENATE BILL 151  
 
 
 
 (2) “Transit station” includes platforms, shelters, passenger waiting 1 
facilities, parking areas, access roadways, and other real property used to facilitate 2 
passenger access to transit service or railroad service. 3 
 
 [(p)] (Q) “Transit vehicle” means a mobile device used in rendering transit 4 
service.  5 
 
7–102. 6 
 
 (a) (1) (I) The development of improved and expanded railroad facilities, 7 
railroad services, transit facilities, and transit services operating as a unified and 8 
coordinated regional transportation system, and the realization of transit–oriented 9 
development throughout the State, represent transportation purposes that are essential for 10 
the satisfactory movement of people and goods, the alleviation of present and future traffic 11 
congestion, the economic welfare and vitality, and the development of the metropolitan area 12 
of Baltimore and other political subdivisions of the State. 13 
 
 (II) IN ORDER TO REALIZE T RANSIT–ORIENTED DEVELOPMENT 14 
AS A TRANSPORTATION PURPOSE, IT IS THE INTENT OF THE GENERAL ASSEMBLY 15 
THAT THE DEPARTMENT MAKE ALL R EASONABLE ATTEMPTS TO INCLUDE  16 
TRANSIT–ORIENTED DEVELOPMENT AS PART OF THE PREFE RRED PLAN FOR 17 
DEVELOPMENT IN AREAS SERVED BY TRANSIT SE RVICES BY PROVIDING 18 
PREFERENCE TO PROPOS ALS THAT FURTHER THI S PURPOSE WHEN : 19 
 
 1. DISTRIBUTING FUNDS FR OM: 20 
 
 A. STATE PROGRAMS OFFERING GR ANTS AND LOANS 21 
FOR DEVELOPMENT AND INFRASTRUCTURE INVES TMENT, INCLUDING THE 22 
COMPLETE STREETS PROGRAM ESTABLISHED U NDER TITLE 8, SUBTITLE 9 OF THIS 23 
ARTICLE; 24 
 
 B. FEDERAL COMMUNITY DEV	ELOPMENT BLOCK 25 
GRANTS ELIGIBLE FEDERAL FUND ING; AND 26 
 
 C. THE PROCEEDS OF GENER AL OBLIGATION BOND A ND 27 
GRANT ANTICIPATION R EVENUE VEHICLE ISSUA NCES; AND 28 
 
 2. AWARDING STATE TAX CREDITS . 29 
 
 (III) 1. EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 3 OF 30 
THIS SUBPARAGRAPH , AN AREA DESIGNATED A	S TRANSIT –ORIENTED 31 
DEVELOPMENT AFTER JULY 1, 2023, SHALL RETAIN THAT DE SIGNATION FOR A 32 
PERIOD OF 10 YEARS.  33 
   	SENATE BILL 151 	5 
 
 
 2. BEFORE THE END OF A 10–YEAR DESIGNATION 1 
PERIOD UNDER THIS SUBPARAGRAPH , A LOCAL GOVERNMENT O R MULTICOUNTY 2 
AGENCY MAY APPLY TO THE SMART GROWTH SUBCABINET TO HAVE TH E 3 
DESIGNATION EXTENDED FOR AN ADDITIONAL 10 YEARS. 4 
 
 3. AN AREA DESIGNATED AS A TRANSIT–ORIENTED 5 
DEVELOPMENT THAT IS SUBJECT TO A GROUND LEASE OR OTHER AGREEMENT WITH 6 
THE STATE, SHALL RETAIN THAT DE SIGNATION FOR THE DU RATION OF THE GROUND 7 
LEASE OR OTHER AGREE MENT.  8 
 
 (2) The establishment of the realization of transit–oriented development as 9 
a transportation purpose under paragraph (1) of this subsection may not be construed to: 10 
 
 (i) Limit the authority of local governments to govern land use as 11 
established under any other law; or 12 
 
 (ii) Grant the State or a department of the State additional authority 13 
to supersede local land use and planning authority. 14 
 
7–103. 15 
 
 (A) ON OR BEFORE NOVEMBER 30, 2024, AND ON OR BEFORE NOVEMBER 16 
30 EACH YEAR THEREAFTER , THE SECRETARY SHALL SUBMI T A REPORT TO THE 17 
GENERAL ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT 18 
ARTICLE ON EFFORTS TO INCREASE TRANSIT–ORIENTED DEVELOPMENT 19 
THROUGHOUT THE STATE. 20 
 
 (B) THE REPORT SHALL INCL UDE AN ANALYSIS OF T HE FOLLOWING ISSUES 21 
FOR EACH TRANSIT –ORIENTED DEVELOPMENT IN THE STATE: 22 
 
 (1) THE DEMOGRAPHIC AND S OCIOECONOMIC INDICAT ORS PRESENT 23 
IN THE TRANSIT–ORIENTED DE VELOPMENT AND THE SU RROUNDING AREAS ;  24 
 
 (2) DEVELOPMENT ACTIVITY 	OCCURRING IN THE 25 
TRANSIT–ORIENTED DEVELOPMENT DURING THE PERIOD TH AT THE REPORT 26 
COVERS; AND 27 
 
 (3) TRANSIT STATION UTILI ZATION RATES FOR THE  28 
TRANSIT–ORIENTED DEVELOPMENT . 29 
 
 (C) THE DEPARTMENT SHALL CONSIDER T HE FINDINGS OF THE R EPORT 30 
REQUIRED UNDER THIS SECTION FOR PURPOSES OF UPDATING THE SCOR ING 31 
STANDARDS FOR APPLIC ATIONS FOR FINANCIAL ASSISTANCE FROM THE 32 
TRANSIT–ORIENTED DEVELOPMENT CAPITAL GRANT AND REVOLVING LOAN 33 
FUND ESTABLISHED UNDE R SUBTITLE 12 OF THIS TITLE. 34  6 	SENATE BILL 151  
 
 
 
SUBTITLE 12. TRANSIT–ORIENTED DEVELOPMENT CAPITAL GRANT AND 1 
REVOLVING LOAN FUND. 2 
 
7–1201. 3 
 
 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 4 
INDICATED. 5 
 
 (B) “FINANCIAL ASSISTANCE ” MEANS A GRANT OR LOA N FROM THE FUND. 6 
 
 (C) “FUND” MEANS THE TRANSIT–ORIENTED DEVELOPMENT CAPITAL 7 
GRANT AND REVOLVING LOAN FUND. 8 
 
 (D) “GAP FUNDING” MEANS FUNDING PROVID ED TO COMPENSATE FOR A 9 
SHORTFALL BETWEEN TH E EXPECTED DEVELOPME NT COSTS OF A PROJEC T AND 10 
THE AVAILABLE FUNDS FOR THE PROJEC T. 11 
 
 (E) “LOCAL JURISDICTION ” MEANS A COUNTY OR A 	MUNICIPAL 12 
CORPORATION . 13 
 
 (F) “MUNICIPAL CORPORATION ” MEANS A MUNICIPALITY AS DEFINED IN § 14 
1–101 OF THE LOCAL GOVERNMENT ARTICLE. 15 
 
7–1202. 16 
 
 (A) THERE IS A TRANSIT–ORIENTED DEVELOPMENT CAPITAL GRANT AND 17 
REVOLVING LOAN FUND. 18 
 
 (B) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO 19 
§ 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 20 
 
7–1203. 21 
 
 (A) THE PURPOSE OF THE FUND IS TO PROMOTE TH E EQUITABLE AND 22 
INCLUSIVE DEVELOPMEN T OF TRANSIT–ORIENTED DEVELOPMENTS THROUGH OUT 23 
THE STATE. 24 
 
 (B) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , AND THE 25 
COMPTROLLER SHALL ACC OUNT FOR THE FUND. 26 
 
 (C) (1) THE FUND CONSISTS OF : 27 
 
 (I) MONEY APPROPRIATED IN THE STATE BUDGET TO THE 28 
FUND; 29   	SENATE BILL 151 	7 
 
 
 
 (II) MONEY MADE AVA ILABLE FOR QUALIFYIN G USES BY THE 1 
FUND FROM OTHER GOVER	NMENTAL SOURCES , INCLUDING COMMUNITY 2 
DEVELOPMENT BLOCK GR ANTS ELIGIBLE FEDERAL FUN DING AND THE 3 
TRANSPORTATION TRUST FUND; 4 
 
 (III) GROUND RENTS OR LAND SALE PROCEEDS IN ACC ORDANCE 5 
WITH § 10–306(C)(2) OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 6 
 
 (IV) PAYMENTS OF PRINCIPAL OF AND INTEREST ON L OANS 7 
MADE UNDER THIS TITL E; 8 
 
 (V) INVESTMENT EARNINGS O F THE FUND; AND 9 
 
 (VI) ANY OTHER MONEY FROM ANY OTHER SOURCE , PUBLIC OR 10 
PRIVATE, ACCEPTED FOR THE BENEFIT OF THE FUND. 11 
 
 (2) CONTRIBUTIONS TO THE FUND UNDER PARAGRAPH (1)(III) OF 12 
THIS SUBSECTION SHAL L: 13 
 
 (I) BE SEPARATELY ACCOUNT ED FOR IN THE FUND; AND 14 
 
 (II) BE USED ONLY FOR THE BENEFIT OF TRANSIT –ORIENTED 15 
DEVELOPMENTS IN THE SAME COUNTY WHERE TH E REAL PROPERTY SUBJ ECT TO 16 
THE GROUND RENT OR L AND SALE IS LOCATED . 17 
 
 (D) FOR EACH FISCAL YEAR 2025, THE GOVERNOR SHALL INCLUD E IN THE 18 
ANNUAL BUDGET BILL A N APPROPRIATION SUFFICIENT TO ENSURE A FUND 19 
BALANCE OF AT LEAST $10,000,000 AT THE START OF THE FISCAL YEAR $5,000,000 20 
TO THE FUND. 21 
 
7–1204. 22 
 
 (A) (1) THE FUND MAY BE USED BY T HE DEPARTMENT TO PROVIDE 23 
FINANCIAL ASSISTANCE TO LOCAL JURISDICTIO NS FOR: 24 
 
 (I) DESIGN PLANS FOR A TR ANSIT–ORIENTED DEVELOPMENT , 25 
PROVIDED THAT THE TR ANSIT–ORIENTED DEVELOPMEN T WILL BE DESIGNED T O 26 
MEET EQUITY GOALS ES TABLISHED BY THE DEPARTMENT ; 27 
 
 (II) PUBLIC INFRASTRUCTURE IMPROVEMENTS WITHIN A 28 
TRANSIT–ORIENTED DEVELOPMENT ; OR 29 
  8 	SENATE BILL 151  
 
 
 (III) GAP FUNDING FOR PUBLI C OR PRIVATE DEVELOP MENT 1 
WITHIN A TRANSIT –ORIENTED DEVELOPMENT . 2 
 
 (2) A PRIVATE ENTITY , INCLUDING A NONPROFI T ENTITY, 3 
PARTICIPATING IN THE DEVELOPMENT OF A TRA NSIT–ORIENTED DEVELOPMENT 4 
MAY PARTNER WITH A L OCAL JURISDICTION TO SUBMIT AN APPLICATIO N FOR 5 
FINANCIAL ASSISTANCE UNDER PARAGRAPH (1)(III) OF THIS SUBSECTION . 6 
 
 (B) (1) THE SMART GROWTH SUBCABINET ESTABLISHE D UNDER §  7 
9–1406 OF THE STATE GOVERNMENT ARTICLE SHALL ESTABLI SH ELIGIBILITY 8 
REQUIREMENTS AND OBJ ECTIVE SCORING STAND ARDS FOR THE REVIEW OF 9 
APPLICATIONS FOR FIN ANCIAL ASSISTANCE . 10 
 
 (2) THE SMART GROWTH SUBCABINET ESTABLISHED UNDER §  11 
9–1406 OF THE STATE GOVERNMENT ARTICLE MAY ESTABLISH : 12 
 
 (I) DIFFERENT ELIGIBILITY REQUIREMENTS AND OBJ ECTIVE 13 
SCORING STANDARDS FO R DIFFERENT TYPES OF FINANCIAL ASSISTANCE ; AND 14 
 
 (II) SCORING PREFERENCES F OR APPLICATIONS THAT 15 
DEMONSTRATE THAT THE PROPOSED PROJECT WIL L: 16 
 
 1. ENHANCE ACCESS TO TRA NSIT FOR LOW –INCOME 17 
AND MINORITY RESIDEN TS OF THE LOCAL JURI SDICTION; 18 
 
 2. ENHANCE ACCESS TO TRA NSIT IN AREAS WITH 19 
AFFORDABLE HOUSING A ND A DIVERSITY OF JO B AND EDUCATIONAL 20 
OPPORTU NITIES; OR 21 
 
 3. ENCOURAGE DEVELOPMENT AROUND 22 
UNDERDEVELOPED AND U	NDERUTILIZED TRANSIT STATIONS IN 23 
TRANSIT–ORIENTED DEVELOPMENT S.  24 
 
 (B) (C) (1) THE DEPARTMENT SHALL : 25 
 
 (I) ESTABLISH ELIGIBILITY REQUIREMENTS AND SCO RING 26 
STANDARDS FOR THE RE VIEW OF APPLICATIONS FOR FIN ANCIAL ASSISTANCE ; AND 27 
 
 (II) (1) PUBLISH THE ELIGIBILI TY REQUIREMENTS AND 28 
SCORING STANDARDS ON THE DEPARTMENT ’S WEBSITE; AND 29 
 
 (2) IN COLLABORATION WITH THE DEPARTMENT OF HOUSING AND 30 
COMMUNITY DEVELOPMENT , SUPPORT RECIPIENTS O F AWARDS FROM THE FUND 31   	SENATE BILL 151 	9 
 
 
BY SUPPORTING ANY ST UDIES, PLANS, AND CODE CHANGES WIT H TECHNICAL 1 
SERVICES. 2 
 
 (2) THE DEPARTMENT MAY ESTABL ISH: 3 
 
 (I) DIFFERENT ELIGIBILITY REQUIREMENTS AND SCO RING 4 
STANDARDS FOR DIFFER ENT TYPES OF FINANCI AL ASSISTANCE; AND 5 
 
 (II) SCORING PREFERENCES F OR APPLICATIONS THAT 6 
DEMONSTRATE THAT THE PROPOSED PROJECT WIL L: 7 
 
 1. ENHANCE ACCESS TO TRA NSIT FOR LOW –INCOME 8 
AND MINORITY RESIDEN TS OF THE LOCAL JURI SDICTION; 9 
 
 2. ENHANCE ACCESS TO TRA NSIT IN AREAS WITH 10 
AFFORDABLE HOUSING A ND A DIVERSITY OF JOB A ND EDUCATIONAL 11 
OPPORTUNITIES ; OR 12 
 
 3. ENCOURAGE DEVELOPMENT AROUND 13 
UNDERDEVELOPED AND U	NDERUTILIZED TRANSIT STATIONS IN 14 
TRANSIT–ORIENTED DEVELOPMENT S. 15 
 
 (C) (D) AN APPLICATION FOR FI NANCIAL ASSISTANCE S HALL INCLUDE : 16 
 
 (1) COMMITMENTS FROM THE LOCAL JURISDICTION T O: 17 
 
 (I) ESTABLISH TRANSIT –SUPPORTIVE LAND USE 18 
DESIGNATIONS FOR REA L PROPERTY WITHIN A TRANSIT–ORIENTED DEVELOPMENT ; 19 
AND 20 
 
 (II) IMPLEMENT , WHERE PRACTICABLE , IMPROVEMENTS TO 21 
THE TRANSIT–ORIENTED DEVELOPMENT THAT PROMOTE THE COMPLETE STREETS 22 
POLICY ADOPTED IN AC CORDANCE WITH § 2–112 OF THIS ARTICLE; 23 
 
 (2) IF A PRIVATE ENTITY P ARTNERS WITH A LOCAL JURISDICTION TO 24 
SUBMIT AN APPLICATIO N FOR FINANCIAL ASSI STANCE, COMMITMENTS FROM KEY 25 
STAKEHOLDERS TO DEVE LOP THE TRANS IT–ORIENTED DEVELOPMENT ; AND 26 
 
 (3) IF THE APPLICATION IS FOR A GRANT TO SUPPO RT THE DESIGN 27 
OR CONSTRUCTION OF A PROPOSED ENHANCEMENT TO A TRANSIT –ORIENTED 28 
DEVELOPMENT , CREDIBLE FUNDING STR ATEGIES THAT DEMONST RATE FULL 29 
FUNDING OF THE DESIG N OR CONSTRUCTION COSTS FOR THE PROPOS ED 30 
ENHANCEMENT ON AWARD OF THE GRANT. 31 
  10 	SENATE BILL 151  
 
 
7–1205. 1 
 
 (A) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 2 
THE SAME MANNER AS O THER STATE MONEY MAY BE IN VESTED. 3 
 
 (B) ANY INVESTMENT EARNIN GS OF THE FUND SHALL BE PAID IN TO THE 4 
FUND. 5 
 
Article – State Finance and Procurement 6 
 
6–226. 7 
 
 (a) (2) (i) Notwithstanding any other provision of law, and unless 8 
inconsistent with a federal law, grant agreement, or other federal requirement or with the 9 
terms of a gift or settlement agreement, net interest on all State money allocated by the 10 
State Treasurer under this section to special funds or accounts, and otherwise entitled to 11 
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 12 
Fund of the State. 13 
 
 (ii) The provisions of subparagraph (i) of this paragraph do not apply 14 
to the following funds: 15 
 
 170. the Cannabis Public Health Fund; [and] 16 
 
 171. the Community Reinvestment and Repair Fund; AND  17 
 
 172. THE TRANSIT–ORIENTED DEVELOPMENT CAPITAL 18 
GRANT AND REVOLVING LOAN FUND. 19 
 
10–306. 20 
 
 (a) In this section, “capital asset” means an asset of a substantial permanent 21 
nature. 22 
 
 (c) (1) Except as provided in paragraphs (2) and (3) of this subsection, if cash 23 
is received as consideration for the disposition of a capital asset of the State or any unit of 24 
the State government, the cash shall be applied to the State Annuity Bond Fund Account 25 
for the payment of the principal of and interest on the bonded indebtedness of the State. 26 
 
 (2) If the capital asset is real property that is being leased or sold to a 27 
private party for the purpose of realizing a transit–oriented development as defined under 28 
§ 7–101 of the Transportation Article, at the discretion of the State agency that is disposing 29 
of the property, all or a portion of the cash proceeds resulting from the transaction shall be 30 
deposited in: 31 
   	SENATE BILL 151 	11 
 
 
 (I) the Baltimore City Community Enhancement Transit–Oriented 1 
Development Fund established under Title 15 of the Economic Development Article for the 2 
purposes of that Fund; OR 3 
 
 (II) THE TRANSIT–ORIENTED DEVELOPMENT CAPITAL GRANT 4 
AND REVOLVING LOAN FUND ESTABLISHED UNDE R TITLE 7 OF THE 5 
TRANSPORTATION ARTICLE FOR THE PURPO SES OF THAT FUND. 6 
 
 (3) (i) If cash is received as consideration for the disposition of a capital 7 
asset, and if the capital asset was originally purchased with special funds, the cash shall 8 
be applied to the special fund. 9 
 
 (ii) Notwithstanding subparagraph (i) of this paragraph, cash 10 
received as consideration for the disposition of helicopters, auxiliary helicopter equipment, 11 
ground support equipment, or other capital equipment related to helicopters shall be 12 
applied to the State Annuity Bond Fund Account for the payment of the principal of and 13 
interest on the bonded indebtedness of the State. 14 
 
 (4) If cash is received as consideration for the disposition of any real or 15 
personal property of the State or any unit of the State government, other than a capital 16 
asset, the cash shall be accounted for and paid into the State Treasury. 17 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 18 
1, 2023. 19 
 
 
 
 
 
Approved: 
________________________________________________________________________________  
 Governor. 
________________________________________________________________________________  
         President of the Senate. 
________________________________________________________________________________  
  Speaker of the House of Delegates.