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.
Italics indicate opposite chamber/conference committee amendments.
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SENATE BILL 24
B1, R2 (3lr0696)
ENROLLED BILL
— Budget and Taxation/Appropriations —
Introduced by Senator McCray Senators McCray, Bailey, Benson, Corderman,
Elfreth, Guzzone, Hettleman, Jackson, Jennings, King, Rosapepe, Salling,
and Zucker
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Department of Transportation – Consolidated Transportation Program and 2
Debt Limit of Grant Anticipation Revenue Vehicle Bonds Financing and 3
Commission on Transportation Revenue and Infrastructure Needs 4
(State and Federal Transportation Funding Act) 5
FOR the purpose of requiring the financial forecast that supports the Consolidated 6
Transportation Program to include a reserve of a certain amount for changes in 7
certain revenue sources; repealing a requirement that the Capital Debt Affordability 8
Committee include certain debt that is secured by future federal aid within its review 9
of State tax supported debt; altering the calculation of the maximum amount of debt 10
secured by future federal aid that the Department of Transportation may issue; 11
providing that the maximum amount of debt that may be issued is calculated as of a 12
certain date; providing that the proceeds from the issuance of certain debt may be 13 2 SENATE BILL 24
used only for certain purposes; altering the maximum term of certain bonds that are 1
secured by a pledge of future federal aid; repealing the pledge of certain taxes to the 2
payment of certain bonds secured by a pledge of federal aid; establishing the 3
Maryland Commission on Transportation Revenue and Infrastructure Needs; and 4
generally relating to the Consolidated Transportation Program’s financial forecast 5
and the amount of debt that the Department of Transportation may issue debt issued 6
by the Department of Transportation that is secured by future federal aid and 7
transportation revenue and infrastructure needs. 8
BY repealing and reenacting, without amendments, 9
Article – Transportation 10
Section 2–103.1(b) 11
Annotated Code of Maryland 12
(2020 Replacement Volume and 2022 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Transportation 15
Section 2–103.1(m) 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2022 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – State Finance and Procurement 20
Section 8–104 21
Annotated Code of Maryland 22
(2021 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
(2020 Replacement Volume and 2022 Supplement) 28
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEM BLY OF MARYLAND, 29
That the Laws of Maryland read as follows: 30
Article – State Finance and Procurement 31
8–104. 32
(a) In this Part II of this subtitle the following words have the meanings 33
indicated. 34
(b) “Committee” means the Capital Debt Affordability Committee. 35
(c) (1) “Tax supported debt” means: 36
SENATE BILL 24 3
(i) State debt; and 1
(ii) other forms of debt, including State agency capital leases 2
supported in whole or part by State tax revenues and debt of the Department of 3
Transportation, the Maryland Stadium Authority, and other units of State government 4
which, in the opinion of the Committee, are supported directly or indirectly by State tax 5
revenues. 6
(2) [“Tax supported debt” includes debt issued by the Department of 7
Transportation under Title 3, Subtitle 6 of the Transportation Article or by the Maryland 8
Transportation Authority under Title 4, Subtitle 3 of the Transportation Article that is 9
secured by a pledge of future federal aid from any source. 10
(3)] “Tax supported debt” does not include capital leases used to finance 11
energy performance contracts entered into under § 12–301 of this article, if, as determined 12
by the Committee, energy savings that are guaranteed by the contractor: 13
(i) equal or exceed the capital lease payments on an annual basis; 14
and 15
(ii) are monitored in accordance with reporting requirements 16
adopted by the Committee. 17
Article – Transportation 18
2–103.1. 19
(b) The State Report on Transportation consists of the Consolidated 20
Transportation Program and the Maryland Transportation Plan. 21
(m) (1) (i) Subject to § 2–1257 of the State Government Article: 22
1. On or before September 1 of each year, the Department 23
shall submit copies of the proposed Consolidated Transportation Program and the 24
supporting financial forecast to the General Assembly; and 25
2. On submission of the budget bill to the presiding officers 26
of the General Assembly, the Department shall submit copies of the approved Consolidated 27
Transportation Program, including the manner in which each major transportation project 28
was evaluated and ranked under § 2–103.7 of this subtitle, and the supporting financial 29
forecast to the General Assembly. 30
(ii) Notwithstanding § 2–1257(b)(2) of the State Government Article, 31
the Department shall provide to each member of the General Assembly a copy of the 32
proposed Consolidated Transportation Program and the approved Consolidated 33
Transportation Program. 34
4 SENATE BILL 24
(2) (i) The financial forecast supporting the Consolidated 1
Transportation Program to be submitted to the General Assembly under paragraph (1) of 2
this subsection shall include the following components: 3
1. A schedule of operating expenses for each specific modal 4
administration; 5
2. A schedule of revenues, including tax and fee revenues, 6
deductions from revenues for other agencies, Department program and fees, Motor Vehicle 7
Administration cost recovery, deductions for highway user revenues, operating revenues 8
by modal administration, and miscellaneous revenues; and 9
3. A summary schedule for the Transportation Trust Fund 10
that includes the opening and closing Fund balance, revenues, transfers, bond sales, bond 11
premiums, any other revenues, expenditures for debt service, operating expenses, amounts 12
available for capital expenses, bond interest rates, bond coverage ratios, total bonds 13
outstanding, federal capital aid, and the total amount for the Transportation Capital 14
Program. 15
(ii) The financial forecast shall include[, for]: 16
1. FOR each of the components specified in subparagraph (i) 17
of this paragraph: 18
[1.] A. Actual information for the last full fiscal year; and 19
[2.] B. Forecasts of the information for each of the six 20
subsequent fiscal years, including the current fiscal year, the fiscal year for the proposed 21
budget, and the next four subsequent fiscal years; AND 22
2. FOR THE SUMMARY OF RE VENUES AND RECEIPTS 23
COMPONENT , A LINE ITEM OF $30,000,000 FOR A RESERVE FOR CH ANGES IN 24
REVENUE SOURCES FOR EACH FISCAL YEAR INC LUDED IN THE FINANCIAL 25
FORECAST. 26
(iii) 1. For the period beyond the budget request year, the 27
financial forecast: 28
A. Shall maximize the use of funds for the capital program; 29
B. Except as authorized by law, may not withhold or reserve 30
funds for capital transportation grants to counties or municipal corporations; and 31
C. Except as provided in subsubparagraph 2 of this 32
subparagraph, shall increase the operating expenses, net of availability payments paid to 33
public–private partnership concessionaires, each year by at least the 5–year average 34 SENATE BILL 24 5
annual rate of change in the operating expenses of the Department, ending with the most 1
recently completed fiscal year. 2
2. The assumed rate of future operating budget growth 3
under subsubparagraph 1C of this subparagraph may not increase or decrease by more 4
than 0.5 percentage points from the growth rate assumed in the previous forecast. 5
(iv) The Department shall incorporate in the financial forecast the 6
most recent estimates by the Board of Revenue Estimates of the revenues from: 7
1. The corporate income tax and the sales and use tax for 8
each of the six subsequent years, including the current fiscal year and the fiscal year for 9
the proposed budget; and 10
2. Motor fuel taxes and motor vehicle titling taxes for the 11
current fiscal year and the fiscal year for the proposed budget. 12
3–601. 13
(a) In order to utilize to the greatest extent possible the benefits of available 14
financial resources relating to transportation purposes, including federal grants, loans, 15
transportation facility revenue sources, and other programs, the Department from time to 16
time may issue its bonds and otherwise borrow funds, as provided in this subtitle, to finance 17
the costs of transportation facilities. 18
(b) The Department may apply for any financial assistance in support of projects 19
deemed appropriate by the Secretary. 20
(c) The Department may undertake the following actions and do all things 21
necessary and appropriate consistent with such actions to utilize the available resources 22
specified in subsection (a) of this section: 23
(1) Pledge and use existing and anticipated federal funds paid to or 24
expected to be paid to the Department for transportation purposes for the payment of the 25
principal of and interest on the Department’s bonds or other debt obligations issued under 26
this subtitle to finance the costs of transportation facilities; and 27
(2) (i) Borrow funds from the federal government or its agencies, and 28
evidence such borrowing with a promissory note or other evidence of obligation; 29
(ii) Borrow funds from a nongovernment lender if the loan is 30
guaranteed by the federal government or its agencies; and 31
(iii) 1. Use the proceeds of the loans described in items (i) and (ii) 32
of this paragraph in connection with transportation facilities including use of the proceeds 33
to pay the costs of financing transportation facilities and the payment of debt service on the 34
Department’s bonds issued in connection with such transportation facilities; 35 6 SENATE BILL 24
2. Repay the loans with revenues attributable to the 1
transportation facilities being financed; and 2
3. Pledge revenues attributable to the transportation 3
facilities being financed in order to secure the Department’s obligations to the federal 4
government or its agencies or a nongovernment lender in connection with the loans. 5
(d) If the Department intends to pledge any future federal aid from any source to 6
support repayment of bonds issued under this subtitle: 7
(1) The aggregate OUTSTANDING AND UNPA ID principal amount of debt 8
issued under this subtitle or Title 4, Subtitle 3 of this article that is secured by a pledge of 9
future federal aid may not exceed $750,000,000 $1,000,000,000 AS OF JUNE 30 OF ANY 10
FISCAL YEAR, PROVIDED THAT THE PR OCEEDS MAY BE USED O NLY FOR: 11
(I) DESIGNING AND CONSTRU CTING THE BALTIMORE RED 12
LINE; 13
(II) PROCURING ELECTRIC BUSES AND C ONSTRUCTING 14
RELATED INFRASTRUCTU RE ZERO–EMISSION BUSES CONSI STENT WITH § 7–406 OF 15
THE TRANSPORTATION ARTICLE AND CONSTRUCT ING RELATED INFRASTR UCTURE, 16
INCLUDING BUS MA INTENANCE FACILITIES ; 17
(III) REHABILITATING OR REP LACING THE SUSQUEHANNA 18
RIVER RAIL BRIDGE; 19
(IV) REPLACING THE BALTIMORE AND POTOMAC TUNNEL WITH 20
THE FREDERICK DOUGLASS TUNNEL; 21
(V) DEVELOPING AND CONSTR UCTING THE SOUTHERN 22
MARYLAND RAPID TRANSIT CORRIDOR; OR 23
(VI) (IV) IMPROVING CAPACITY OR RUN–THROUGH SERVICE 24
ON THE BRUNSWICK, CAMDEN, OR PENN LINES OF THE MARYLAND AREA 25
REGIONAL COMMUTER (MARC) RAIL SYSTEM; DESIGNING AND CONSTRU CTING 26
IMPROVEMENTS TO THE MARYLAND ROUTE 2 AND ROUTE 4 CORRIDOR, INCLUDING 27
THE THOMAS JOHNSON BRIDGE; 28
(V) DESIGNING AND CONSTRU CTING IMPROVEMENTS T O THE 29
MARYLAND ROUTE 90 CORRIDOR; OR 30
(VI) DESIGNING AND CONSTRU CTING IMPROVEMENTS T O THE 31
INTERSTATE 81 CORRIDOR; 32
SENATE BILL 24 7
(2) The date of maturity may not be later than 12 15 years after the date 1
of issue; AND 2
(3) Notwithstanding § 3–215(d) of this title, if future federal aid is 3
insufficient to pay the principal of and interest on the bonds issued under this subtitle when 4
due, the tax levied under § 3–215 of this title, to the extent the proceeds of such tax are not 5
necessary to provide the sinking fund required under § 3–215(c) of this title, is irrevocably 6
pledged to the payment of the principal of and interest on the bonds issued under this 7
subtitle as they become due and payable; 8
(4) The lien of the pledge under item (3) of this subsection shall at all times 9
be subordinate to the lien of the pledge of such tax under § 3–215(d) of this title to the 10
payment of principal of and interest on consolidated transportation bonds; and 11
(5) (3) No part of the tax levied under § 3–215 of this title may be 12
repealed, diminished, or applied to any other purpose until: 13
(i) The bonds issued under this subtitle and interest on them have 14
become due and fully paid; or 15
(ii) Adequate and complete provision for payment of the principal 16
and interest has been made. 17
(e) (1) By resolution of the Secretary, the Department may: 18
(i) Borrow funds to finance the costs of transportation facilities; 19
(ii) Evidence the borrowing by the issuance and sale of 20
revenue–backed bonds; and 21
(iii) Pledge and use a dedicated revenue source, which may include 22
revenues attributable to the transportation facilities being financed, for the payment of the 23
principal of and interest on the Department’s revenue–backed bonds described in this 24
subsection. 25
(2) Payment of the principal of or interest on revenue–backed bonds issued 26
under this subtitle may not be supported directly or indirectly by State tax revenues 27
pledged to meet debt service on Consolidated Transportation Bonds as prescribed under § 28
3–215 of this title. 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30
1, 2023. 31
SECTION 2. AND BE IT FURTHER ENACTED, That: 32
8 SENATE BILL 24
(a) There is a Maryland Commission on Transportation Revenue and 1
Infrastructure Needs. 2
(b) The Commission consists of: 3
(1) (i) subject to item (iii) of this item, three members of the Senate of 4
Maryland, appointed by the President of the Senate; 5
(2) (ii) subject to item (iii) of this item, three members of the House of 6
Delegates, appointed by the Speaker of the House; and 7
(iii) of the six members appointed under items (i) and (ii) of this item: 8
1. one member shall represent the core service area of the 9
Maryland Transit Administration, as defined in § 7–301.1 of the Transportation Article; 10
and 11
2. one member shall represent the Washington Metropolitan 12
Area Transit Authority service area; and 13
(3) (2) the following members appointed by the Governor: 14
(i) the Secretary of Transportation; 15
(ii) the Secretary of Budget and Management; 16
(iii) the Secretary of Commerce; 17
(iv) the Secretary of Planning; 18
(v) a representative of the Washington Metropolitan Transit 19
Authority; 20
(vi) two modal administrators from the Department of 21
Transportation, selected by the Secretary of Transportation; 22
(vii) three representatives from the business community, including 23
two representatives of statewide or regional organizations; 24
(viii) two representatives of the transit community; 25
(ix) two representatives of the environmental community; 26
(x) a representative of the American Automobile Association; 27
(xi) a representative of the freight rail industry; 28
SENATE BILL 24 9
(xii) a representative of the motor carrier industry; 1
(xiii) a representative of the Maryland Association of Counties; 2
(xiv) a representative of the transportation construction industry; 3
(xv) a representative of the Maryland Municipal League; 4
(xvi) a representative of the cycling advocacy community; 5
(xvii) two representatives of labor unions; and 6
(xviii) two individuals representing rural areas in the State. 7
(c) The Governor shall designate the chair of the Commission after consultation 8
with the President of the Senate and the Speaker of the House. 9
(d) To the extent practicable, the President of the Senate, the Speaker of the 10
House, and the Governor shall attempt to ensure regional, economic, ethnic, and gender 11
diversity on the Commission. 12
(e) A member of the Commission: 13
(1) may not receive compensation as a member of the Commission; but 14
(2) is entitled to reimbursement of expenses under the Standard State 15
Travel Regulations, as provided in the State budget. 16
(f) The Department of Transportation and the Department of Legislative 17
Services shall provide staff support to the Commission. 18
(g) The Commission shall review, evaluate, and make recommendations 19
concerning: 20
(1) the current State funding sources and structure of the Maryland 21
Transportation Trust Fund, including: 22
(i) revenue trends that demonstrate weaknesses in the stability of 23
the Trust Fund; and 24
(ii) trends in operating and capital expenditures, and how existing 25
resources have constrained programming; 26
(iii) trends in the General Fund and general obligation support for 27
State transportation expenditures and an analysis of whether this approach to support 28
should continue or transportation expenditures should solely be supported by the 29
Transportation Trust Fund; and 30 10 SENATE BILL 24
(iv) whether revenue funds for transit and roads, bridges, and tunnels 1
should be segregated; 2
(2) the methods that other states are employing to fund state 3
transportation operating and capital programs including toll revenue, 4
vehicle–miles–traveled fees, fees on zero–emission vehicles, and non–transportation–related 5
revenue options; 6
(3) short– and long–term construction and maintenance funding needs for 7
transit, highway, pedestrian, bicycle, heavy rail, shipping, air travel, and other 8
transportation needs; 9
(4) options for public–private partnerships, including partnerships with 10
local governments, to meet transportation funding needs including funding options; 11
(5) changes in transportation technology and trends that will impact 12
transportation infrastructure needs and costs to the State; 13
(6) existing practices for prioritizing project funding and options to better 14
prioritize needs, including local and legislative priorities; 15
(7) the structure of regional transportation authorities and the ability of 16
these authorities to meet transportation needs in various regions of the State; and 17
(8) options for sustainable, long–term revenue sources for transportation; 18
and 19
(9) options for improving the Maryland Department of Transportation’s 20
ability and capacity to deliver major capital projects. 21
(h) On or before January 1, 2024, the Commission shall submit an interim report 22
of its findings and recommendations to the Governor and, in accordance with § 2–1257 of 23
the State Government Article, the General Assembly. 24
(i) On or before January 1, 2025, the Commission shall submit a final report of 25
its findings and recommendations to the Governor and, in accordance with § 2–1257 of the 26
State Government Article, the General Assembly. 27
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
1, 2023. Section 2 of this Act shall remain effective for a period of 2 years and, at the end of 29
June 30, 2025, Section 2 of this Act, with no further action required by the General 30
Assembly, shall be abrogated and of no further force and effect. 31