EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0024*
SENATE BILL 24
B1, R2 3lr0696
(PRE–FILED) CF HB 51
By: Senator McCray
Requested: November 4, 2022
Introduced and read first time: January 11, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Department of Transportation – Consolidated Transportation Program and 2
Debt Limit of Grant Anticipation Revenue Vehicle Bonds 3
(State and Federal Transportation Funding Act) 4
FOR the purpose of requiring the financial forecast that supports the Consolidated 5
Transportation Program to include a reserve of a certain amount for changes in 6
certain revenue sources; altering the calculation of the maximum amount of debt 7
secured by future federal aid that the Department of Transportation may issue; 8
providing that the maximum amount of debt that may be issued is calculated as of a 9
certain date; providing that the proceeds from the issuance of certain debt may be 10
used only for certain purposes; and generally relating to the Consolidated 11
Transportation Program’s financial forecast and the amount of debt that the 12
Department of Transportation may issue. 13
BY repealing and reenacting, without amendments, 14
Article – Transportation 15
Section 2–103.1(b) 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2022 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Transportation 20
Section 2–103.1(m) 21
Annotated Code of Maryland 22
(2020 Replacement Volume and 2022 Supplement) 23
BY repealing and reenacting, with amendments, 24
Article – Transportation 25
Section 3–601 26
Annotated Code of Maryland 27 2 SENATE BILL 24
(2020 Replacement Volume and 2022 Supplement) 1
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2
That the Laws of Maryland read as follows: 3
Article – Transportation 4
2–103.1. 5
(b) The State Report on Transportation consists of the Consolidated 6
Transportation Program and the Maryland Transportation Plan. 7
(m) (1) (i) Subject to § 2–1257 of the State Government Article: 8
1. On or before September 1 of each year, the Department 9
shall submit copies of the proposed Consolidated Transportation Program and the 10
supporting financial forecast to the General Assembly; and 11
2. On submission of the budget bill to the presiding officers 12
of the General Assembly, the Department shall submit copies of the approved Consolidated 13
Transportation Program, including the manner in which each major transportation project 14
was evaluated and ranked under § 2–103.7 of this subtitle, and the supporting financial 15
forecast to the General Assembly. 16
(ii) Notwithstanding § 2–1257(b)(2) of the State Government Article, 17
the Department shall provide to each member of the General Assembly a copy of the 18
proposed Consolidated Transportation Program and the approved Conso lidated 19
Transportation Program. 20
(2) (i) The financial forecast supporting the Consolidated 21
Transportation Program to be submitted to the General Assembly under paragraph (1) of 22
this subsection shall include the following components: 23
1. A schedule of operating expenses for each specific modal 24
administration; 25
2. A schedule of revenues, including tax and fee revenues, 26
deductions from revenues for other agencies, Department program and fees, Motor Vehicle 27
Administration cost recovery, deductions for highway user revenues, operating revenues 28
by modal administration, and miscellaneous revenues; and 29
3. A summary schedule for the Transportation Trust Fund 30
that includes the opening and closing Fund balance, revenues, transfers, bond sales, bond 31
premiums, any other revenues, expenditures for debt service, operating expenses, amounts 32
available for capital expenses, bond interest rates, bond coverage ratios, total bonds 33
outstanding, federal capital aid, and the total amount for the Transportation Capital 34
Program. 35 SENATE BILL 24 3
(ii) The financial forecast shall include[, for]: 1
1. FOR each of the components specified in subparagraph (i) 2
of this paragraph: 3
[1.] A. Actual information for the last full fiscal year; and 4
[2.] B. Forecasts of the information for each of the six 5
subsequent fiscal years, including the current fiscal year, the fiscal year for the proposed 6
budget, and the next four subsequent fiscal years; AND 7
2. FOR THE SUMMARY OF RE VENUES AND RECEIPTS 8
COMPONENT , A LINE ITEM OF $30,000,000 FOR A RESERVE FOR CH ANGES IN 9
REVENUE SOURCES FOR EACH FISCAL YEAR INC LUDED IN THE FINANCI AL 10
FORECAST. 11
(iii) 1. For the period beyond the budget request year, the 12
financial forecast: 13
A. Shall maximize the use of funds for the capital program; 14
B. Except as authorized by law, may not withhold or reserve 15
funds for capital transportation grants to counties or municipal corporations; and 16
C. Except as provided in subsubparagraph 2 of this 17
subparagraph, shall increase the operating expenses, net of availability payments paid to 18
public–private partnership concessionaires, each year by at least the 5–year average 19
annual rate of change in the operating expenses of the Department, ending with the most 20
recently completed fiscal year. 21
2. The assumed rate of future operating budget growth 22
under subsubparagraph 1C of this subparagraph may not increase or decrease by more 23
than 0.5 percentage points from the growth rate assumed in the previous forecast. 24
(iv) The Department shall incorporate in the financial forecast the 25
most recent estimates by the Board of Revenue Estimates of the revenues from: 26
1. The corporate income tax and the sales and use tax for 27
each of the six subsequent years, including the current fiscal year and the fiscal year for 28
the proposed budget; and 29
2. Motor fuel taxes and motor vehicle titling taxes for the 30
current fiscal year and the fiscal year for the proposed budget. 31
3–601. 32 4 SENATE BILL 24
(a) In order to utilize to the greatest extent possible the benefits of available 1
financial resources relating to transportation purposes, including federal grants, loans, 2
transportation facility revenue sources, and other programs, the Department from time to 3
time may issue its bonds and otherwise borrow funds, as provided in this subtitle, to finance 4
the costs of transportation facilities. 5
(b) The Department may apply for any financial assistance in support of projects 6
deemed appropriate by the Secretary. 7
(c) The Department may undertake the following actions and do all things 8
necessary and appropriate consistent with such actions to utilize the available resources 9
specified in subsection (a) of this section: 10
(1) Pledge and use existing and anticipated federal funds paid to or 11
expected to be paid to the Department for transportation purposes for the payment of the 12
principal of and interest on the Department’s bonds or other debt obligations issued under 13
this subtitle to finance the costs of transportation facilities; and 14
(2) (i) Borrow funds from the federal government or its agencies, and 15
evidence such borrowing with a promissory note or other evidence of obligation; 16
(ii) Borrow funds from a nongovernment lender if the loan is 17
guaranteed by the federal government or its agencies; and 18
(iii) 1. Use the proceeds of the loans described in items (i) and (ii) 19
of this paragraph in connection with transportation facilities including use of the proceeds 20
to pay the costs of financing transportation facilities and the payment of debt service on the 21
Department’s bonds issued in connection with such transportation facilities; 22
2. Repay the loans with revenues attributable to the 23
transportation facilities being financed; and 24
3. Pledge revenues attributable to the transportation 25
facilities being financed in order to secure the Department’s obligations to the federal 26
government or its agencies or a nongovernment lender in connection with the loans. 27
(d) If the Department intends to pledge any future federal aid from any source to 28
support repayment of bonds issued under this subtitle: 29
(1) The aggregate OUTSTANDING AND UNPA ID principal amount of debt 30
issued under this subtitle or Title 4, Subtitle 3 of this article that is secured by a pledge of 31
future federal aid may not exceed $750,000,000 AS OF JUNE 30 OF ANY FISCAL YEAR , 32
PROVIDED THAT THE PRO CEEDS MAY BE USED ON LY FOR: 33
(I) DESIGNING AND CONSTRU CTING THE BALTIMORE RED 34
LINE; 35 SENATE BILL 24 5
(II) PROCURING ELECTRIC BU SES AND CONSTRUCTING 1
RELATED INFRASTRUCTU RE; 2
(III) REHABILITATING OR REP LACING THE SUSQUEHANNA 3
RIVER RAIL BRIDGE; 4
(IV) REPLACING THE BALTIMORE AND POTOMAC TUNNEL WITH 5
THE FREDERICK DOUGLASS TUNNEL; 6
(V) DEVELOPING AND CONSTR UCTING THE SOUTHERN 7
MARYLAND RAPID TRANSIT CORRIDOR; OR 8
(VI) IMPROVING CAPACITY OR RUN–THROUGH SERVICE ON T HE 9
BRUNSWICK, CAMDEN, OR PENN LINES OF THE MARYLAND AREA REGIONAL 10
COMMUTER (MARC) RAIL SYSTEM; 11
(2) The date of maturity may not be later than 12 years after the date of 12
issue; 13
(3) Notwithstanding § 3–215(d) of this title, if future federal aid is 14
insufficient to pay the principal of and interest on the bonds issued under this subtitle when 15
due, the tax levied under § 3–215 of this title, to the extent the proceeds of such tax are not 16
necessary to provide the sinking fund required under § 3–215(c) of this title, is irrevocably 17
pledged to the payment of the principal of and interest on the bonds issued under this 18
subtitle as they become due and payable; 19
(4) The lien of the pledge under item (3) of this subsection shall at all times 20
be subordinate to the lien of the pledge of such tax under § 3–215(d) of this title to the 21
payment of principal of and interest on consolidated transportation bonds; and 22
(5) No part of the tax levied under § 3–215 of this title may be repealed, 23
diminished, or applied to any other purpose until: 24
(i) The bonds issued under this subtitle and interest on them have 25
become due and fully paid; or 26
(ii) Adequate and complete provision for payment of the principal 27
and interest has been made. 28
(e) (1) By resolution of the Secretary, the Department may: 29
(i) Borrow funds to finance the costs of transportation facilities; 30
(ii) Evidence the borrowing by the issuance and sale of 31
revenue–backed bonds; and 32 6 SENATE BILL 24
(iii) Pledge and use a dedicated revenue source, which may include 1
revenues attributable to the transportation facilities being financed, for the payment of the 2
principal of and interest on the Department’s revenue–backed bonds described in this 3
subsection. 4
(2) Payment of the principal of or interest on revenue–backed bonds issued 5
under this subtitle may not be supported directly or indirectly by State tax revenues 6
pledged to meet debt service on Consolidated Transportation Bonds as prescribed under § 7
3–215 of this title. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take e ffect July 9
1, 2023. 10