EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W. [Brackets] indicate matter deleted from existing law. *sb0167* SENATE BILL 167 B1, P1, Q7 3lr1086 SB 377/16 – B&T By: Senators Elfreth, Beidle, Gile, Griffith, Guzzone, and Hettleman Introduced and read first time: January 19, 2023 Assigned to: Budget and Taxation A BILL ENTITLED AN ACT concerning 1 Maryland State Arts Council – Funding 2 FOR the purpose of altering the calculation for certain funding for the Maryland State Arts 3 Council for certain fiscal years; and generally relating to the Maryland State Arts 4 Council and the State admissions and amusement tax. 5 BY repealing and reenacting, with amendments, 6 Article – State Finance and Procurement 7 Section 7–325 8 Annotated Code of Maryland 9 (2021 Replacement Volume and 2022 Supplement) 10 BY repealing and reenacting, without amendments, 11 Article – Tax – General 12 Section 2–202 13 Annotated Code of Maryland 14 (2022 Replacement Volume) 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 That the Laws of Maryland read as follows: 17 Article – State Finance and Procurement 18 7–325. 19 (a) IN THIS SECTION , “COUNCIL” MEANS THE MARYLAND STATE ARTS 20 COUNCIL. 21 (B) (1) [In each of fiscal years 2011 and 2012, the Governor shall include in the 22 annual budget bill submitted to the General Assembly a General Fund appropriation for 23 2 SENATE BILL 167 the Maryland State Arts Council of not less than $13,298,434. 1 (2) For] SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , FOR fiscal 2 [year 2013 and each fiscal year thereafter] YEARS 2013 THROUGH 2024, the Governor 3 shall include in the annual budget bill [submitted to the General Assembly] a General 4 Fund appropriation for the [Maryland State Arts] Council in an amount not less than the 5 amount of the General Fund appropriation for the Council [as approved in the State budget 6 as enacted by the General Assembly] for the [prior] IMMEDIATELY PRECEDIN G fiscal 7 year[,]. 8 (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , FOR FISCAL 9 YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , THE GOVERNOR SHALL INCLUD E 10 IN THE ANNUAL BUDGET BILL A GENERAL FUND APPROPRIATION FO R THE COUNCIL 11 IN AN AMOUNT NOT LES S THAN THE SUM OF: 12 (I) ANY FUNDS DI STRIBUTED TO THE COUNCIL IN THE 13 IMMEDIATELY PRECEDIN G FISCAL YEAR IN ACCORDANCE WITH § 2–202 OF THE TAX 14 – GENERAL ARTICLE; AND 15 (II) THE AMOUNT OF THE GENERAL FUND APPROPRIATION FO R 16 THE COUNCIL FOR THE IMMEDIATELY PRECEDIN G FISCAL YEAR. 17 (3) THE AMOUNTS CALCULATED UNDER PARAGRAPH S (1) AND (2) OF 18 THIS SUBSECTION SHALL BE increased by not less than the percentage by which the 19 projected total General Fund revenues for the upcoming fiscal year exceed the revised 20 estimate of total General Fund revenues for the current fiscal year, as contained in the 21 report of estimated State revenues submitted by the Board of Revenue Estimates to the 22 Governor under § 6–106(b) of this article. 23 [(b)] (C) The Legislative Auditor has the authority to conduct a review or audit 24 of any recipient of a grant from the [Maryland State Arts] Council. 25 Article – Tax – General 26 2–202. 27 (a) After making the distribution required under § 2–201 of this subtitle, within 28 20 days after the end of each quarter, the Comptroller shall distribute: 29 (1) except as provided in subsections (b) and (c) of this section, from the 30 revenue from the State admissions and amusement tax on electronic bingo and electronic 31 tip jars under § 4–102(e) of this article: 32 SENATE BILL 167 3 (i) for fiscal year 2021 and each fiscal year thereafter, the revenue 1 attributable to a tax rate of 20% to the Maryland E–Nnovation Initiative Fund under § 2 6–604 of the Economic Development Article; and 3 (ii) for fiscal year 2021 and each fiscal year thereafter, the revenue 4 attributable to a tax rate of 5% as follows: 5 1. to the Maryland State Arts Council, as provided in § 4–512 6 of the Economic Development Article, $1,000,000 in each fiscal year; 7 2. to the Town of Chesapeake Beach, $300,000 in each fiscal 8 year; 9 3. to the Michael Erin Busch Sports Fund established under 10 § 10–612.2 of the Economic Development Article, $500,000 in each fiscal year; and 11 4. the remainder to the Special Fund for Preservation of 12 Cultural Arts in Maryland, as provided in § 4–801 of the Economic Development Article; 13 and 14 (2) the remaining admissions and amusement tax revenue: 15 (i) to the Maryland Stadium Authority, county, or municipal 16 corporation that is the source of the revenue; or 17 (ii) if the Maryland Stadium Authority and also a county or 18 municipal corporation tax a reduced charge or free admission: 19 1. 80% of that revenue to the Authority; and 20 2. 20% to the county or municipal corporation. 21 (b) (1) Subject to paragraph (2) of this subsection, from the revenue from the 22 State admissions and amusement tax on electronic bingo and electronic tip jars in Calvert 23 County under § 4–102(e) of this article, the Comptroller shall distribute from: 24 (i) the revenue attributable to a tax rate of 1.5%: 25 1. $50,000 to the Boys and Girls Club of the Town of North 26 Beach; and 27 2. the remainder to the Town of North Beach; 28 (ii) the revenue attributable to a tax rate of 2.5% to the Town of 29 Chesapeake Beach; and 30 4 SENATE BILL 167 (iii) the revenue attributable to a tax rate of 4% to the Calvert County 1 Youth Recreational Opportunities Fund under Title 5, Subtitle 19 of the Natural Resources 2 Article. 3 (2) Funds required to be distributed to the entities in paragraph (1) of this 4 subsection shall be provided through an appropriation in the annual State budget under 5 budget code A15O00.03 Payments to Civil Divisions of the State. 6 (c) From the revenue attributable to a tax rate of 5% to be distributed to the 7 Special Fund for Preservation of Cultural Arts in Maryland or the Maryland State Arts 8 Council under subsection (a)(1)(ii) of this section, the Comptroller shall distribute: 9 (1) for fiscal year 2019 and each fiscal year thereafter, $250,000 to the Arts 10 Council of Anne Arundel County; and 11 (2) for fiscal year 2020 and each fiscal year thereafter, $250,000 to the 12 Maryland Historical Society. 13 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14 1, 2023. 15