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. *hb0764* HOUSE BILL 764 C8, R2, C7 4lr1573 CF SB 1116 By: Delegates Shetty, Korman, and Palakovich Carr Introduced and read first time: January 31, 2024 Assigned to: Appropriations Committee Report: Favorable with amendments House action: Adopted Read second time: March 1, 2024 CHAPTER ______ AN ACT concerning 1 State Lottery Fund – Bus Rapid Transit Fund Distribution and Prince George’s 2 County Blue Line Corridor Facility Fund – Alterations 3 FOR the purpose of repealing a certain limitation on the distribution of up to a certain 4 amount of money from the State Lottery Fund to the Bus Rapid Transit Fund for 5 certain bus rapid transit system grants; altering the circumstances for distributions 6 from the Bus Rapid Transit Fund; adding an authorized use for the Prince George’s 7 County Blue Line Corridor Facility Fund; altering distributions to the Prince 8 George’s County Blue Line Corridor Facility Fund in certain fiscal years; requiring 9 the Maryland Stadium Authority to submit a certain report, on or before a certain 10 date, on certain activities in the Prince George’s County Blue Line Corridor; and 11 generally relating to the State Lottery Fund and, the Bus Rapid Transit Fund, and 12 the Prince George’s County Blue Line Corridor Facility Fund. 13 BY repealing and reenacting, with amendments, 14 Article – Economic Development 15 Section 10–657.6 16 Annotated Code of Maryland 17 (2018 Replacement Volume and 2023 Supplement) 18 BY repealing and reenacting, with amendments, 19 Article – State Government 20 Section 9–120 21 Annotated Code of Maryland 22 (2021 Replacement Volume and 2023 Supplement) 23 2 HOUSE BILL 764 BY repealing and reenacting, with amendments, 1 Article – Transportation 2 Section 2–802 3 Annotated Code of Maryland 4 (2020 Replacement Volume and 2023 Supplement) 5 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6 That the Laws of Maryland read as follows: 7 Article – Economic Development 8 10–657.6. 9 (a) In this section, “Fund” means the Prince George’s County Blue Line Corridor 10 Facility Fund. 11 (b) There is a Prince George’s County Blue Line Corridor Facility Fund. 12 (c) The purpose of the Fund is to enable the Authority to: 13 (1) use the Fund as a revolving fund for implementing this subtitle as it 14 relates to a Prince George’s County Blue Line Corridor facility; and 15 (2) pay any expenses incurred by the Authority that are related to a Prince 16 George’s County Blue Line Corridor facility. 17 (d) The Authority shall administer the Fund. 18 (e) (1) The Fund is a continuing, nonlapsing fund that is not subject to 19 reversion under § 7–302 of the State Finance and Procurement Article. 20 (2) The State Treasurer shall hold the Fund separately, and the 21 Comptroller shall account for the Fund. 22 (f) (1) To the extent considered appropriate by the Authority, the receipts of 23 the Fund shall be pledged to and charged with the following related to a Prince George’s 24 County Blue Line Corridor facility: 25 (i) payment of debt service on Authority bonds; 26 (ii) all reasonable charges and expenses related to the Authority’s 27 borrowing; and 28 (iii) the management of the Authority’s obligations. 29 HOUSE BILL 764 3 (2) The pledge shall be effective in the same manner as provided in § 1 10–634 of this subtitle. 2 (g) The Fund consists of: 3 (1) money distributed to the Fund under § 9–120(b)(1)(xi) of the State 4 Government Article; 5 (2) money appropriated for deposit in the Fund; 6 (3) proceeds from the sale of bonds concerning a Prince George’s County 7 Blue Line Corridor facility; 8 (4) revenues collected or received from any source under this subtitle 9 related to a Prince George’s County Blue Line Corridor facility; 10 (5) any interest earnings of the Fund; and 11 (6) any additional money made available from any source for the purposes 12 established for the Fund. 13 (H) THE AUTHORITY SHALL PAY F ROM THE FUND ANY AND ALL EXPE NSES 14 THAT ARE INCURRED BY THE AUTHORITY, OR OTHERWISE SPECIFI CALLY APPROVED 15 BY THE AUTHORITY, RELATING TO PRINCE GEORGE’S COUNTY BLUE LINE 16 CORRIDOR FACILITIES. 17 [(h)] (I) (1) The State Treasurer shall invest the money of the Fund in the 18 same manner as other State funds. 19 (2) Any interest earnings shall be credited to the Fund. 20 Article – State Government 21 9–120. 22 (a) The Comptroller shall distribute, or cause to be distributed, the State Lottery 23 Fund to pay: 24 (1) on a pro rata basis for the daily and nondaily State lottery games, the 25 expenses of administering and operating the State lottery, as authorized under this subtitle 26 and the State budget; and 27 (2) then, except as provided in § 10–113.1 of the Family Law Article, § 28 11–618 of the Criminal Procedure Article, and § 3–307 of the State Finance and 29 Procurement Article, the holder of each winning ticket or share. 30 4 HOUSE BILL 764 (b) (1) By the end of the month following collection, the Comptroller shall 1 deposit, cause to be deposited, or pay: 2 (i) 1. After June 30, 2023, but not later than June 30, 2026, into 3 the Maryland Stadium Facilities Fund established under § 7–312 of the State Finance and 4 Procurement Article from the money that remains in the State Lottery Fund, after the 5 distribution under subsection (a) of this section, an amount not to exceed $14,200,000 in 6 each fiscal year; 7 2. after June 30, 2023, but not later than June 30, 2026, from 8 the money that remains in the State Lottery Fund after the distribution under subsection 9 (a) of this section, an amount for each fiscal year not to exceed: 10 A. $34,900,000 into the Camden Yards Football Sports 11 Facility Supplemental Financing Fund established under § 10–652.1 of the Economic 12 Development Article; and 13 B. $40,900,000 into the Camden Yards Baseball Sports 14 Facility Supplemental Financing Fund established under § 10–652.2 of the Economic 15 Development Article; 16 3. after June 30, 2026, but not later than June 30, 2039, into 17 the Maryland Stadium Facilities Fund established under § 7–312 of the State Finance and 18 Procurement Article from the money that remains in the State Lottery Fund, after the 19 distribution under subsection (a) of this section, an amount not to exceed $3,360,000 in each 20 fiscal year; 21 4. after June 30, 2026, but not later than June 30, 2039, from 22 the money that remains in the State Lottery Fund after the distribution under subsection 23 (a) of this section, an amount for each fiscal year not to exceed: 24 A. $45,000,000 into the Camden Yards Football Sports 25 Facility Supplemental Financing Fund established under § 10–652.1 of the Economic 26 Development Article; and 27 B. $41,640,000 into the Camden Yards Baseball Sport s 28 Facility Supplemental Financing Fund established under § 10–652.2 of the Economic 29 Development Article; and 30 5. after June 30, 2039, from the money that remains in the 31 State Lottery Fund after the distribution under subsection (a) of this section, an amount 32 for each fiscal year not to exceed: 33 A. $45,000,000 into the Camden Yards Football Sports 34 Facility Supplemental Financing Fund established under § 10–652.1 of the Economic 35 Development Article; and 36 HOUSE BILL 764 5 B. $45,000,000 into the Camden Yards Baseba ll Sports 1 Facility Supplemental Financing Fund established under § 10–652.2 of the Economic 2 Development Article; 3 (ii) after June 30, 2014, into the Maryland Veterans Trust Fund 10% 4 of the money that remains in the State Lottery Fund from the proceeds of sales of tickets 5 from instant ticket lottery machines by veterans’ organizations under § 9–112(d) of this 6 subtitle, after the distribution under subsection (a) of this section; 7 (iii) after June 30, 2014, into the Baltimore City Public School 8 Construction Financing Fund established under § 10–656 of the Economic Development 9 Article the money that remains in the State Lottery Fund from the proceeds of all lotteries 10 after the distributions under subsection (a) of this section and items (i) and (ii) of this 11 paragraph, an amount equal to $20,000,000 in each fiscal year that bonds are outstanding 12 and unpaid, to be paid in two installments with at least $10,000,000 paid no later than 13 December 1 of each fiscal year; 14 (iv) after June 30, 2021, into the Racin g and Community 15 Development Financing Fund established under § 10–657.2 of the Economic Development 16 Article from the money that remains in the State Lottery Fund, after the distribution under 17 subsection (a) of this section, an amount equal to $17,000,000 in each fiscal year until the 18 bonds issued for a racing facility have matured; 19 (v) after June 30, 2020, into the Michael Erin Busch Sports Fund 20 established under § 10–612.2 of the Economic Development Article from the money that 21 remains in the State Lottery Fund from the proceeds of all lotteries after the distributions 22 under subsection (a) of this section and items (i) through (iv) of this paragraph, an amount 23 equal to $1,000,000 in each fiscal year; 24 (vi) after June 30, 2021, a grant to the Maryland Humanities Council 25 for Maryland History Day and other programming from the money that remains in the 26 State Lottery Fund after the distributions under subsection (a) of this section and items (i) 27 through (v) of this paragraph, an amount equal to $150,000 in each fiscal year; 28 (vii) after June 30, 2021, to Anne Arundel County or Baltimore City 29 each fiscal year the amount required to be distributed under § 9–1A–31(a)(7)(ii) of this title 30 to be used as required under § 9–1A–31 of this title; 31 (viii) after June 30, 2022, into the Maggie McIntosh School Arts Fund 32 established under § 5–243 of the Education Article from the money that remains in the 33 State Lottery Fund from the proceeds of all other lotteries after the distributions under 34 subsection (a) of this section and items (i) through (vii) of this paragraph, an amount equal 35 to $250,000 in each fiscal year; 36 (ix) after June 1, 2022, to the Sports Entertainment Facilities 37 Financing Fund established under § 10–657.5 of the Economic Development Article from 38 the money that remains in the State Lottery Fund from the proceeds of all lotteries after 39 6 HOUSE BILL 764 the distributions under subsection (a) of this section and items (i) through (viii) of this 1 paragraph, an amount not to exceed $25,000,000 to be paid in two installments not later 2 than November 1 and June 1 of each fiscal year; 3 (x) after June 30, 2022, to the Major Sports and Entertainment 4 Event Program Fund established under § 10–611.2 of the Economic Development Article 5 from the money that remains in the State Lottery Fund from the proceeds of all lotteries 6 after the distributions under subsection (a) of this section and items (i) through (ix) of this 7 paragraph: 8 1. for fiscal year 2023, an amount equal to $10,000,000; and 9 2. for each fiscal year thereafter, the amount necessary to 10 restore the Major Sports and Entertainment Event Program Fund to a balance of 11 $10,000,000; 12 (xi) [if a deposit or payment is made under item (i)2 through 5 of this 13 paragraph, an amount equal to the total deposit or payment under item (i)2 through 5 of 14 this paragraph, but not exceeding $27,000,000, into] AFTER JUNE 30, 2024, INTO the Bus 15 Rapid Transit Fund established under § 2–802.1 of the Transportation Article for bus rapid 16 transit system grants in accordance with § 2–802 of the Transportation Article from the 17 money that remains in the State Lottery Fund from the proceeds of all lotteries after the 18 distributions under subsection (a) of this section and items (i) through (x) of this paragraph, 19 AN AMOUNT EQUAL TO $27,000,000 IN EACH FISCAL YEAR ; 20 (xii) 1. NOT LATER THAN JUNE 30, 2024, INTO THE PRINCE 21 GEORGE’S COUNTY BLUE LINE CORRIDOR FACILITY FUND ESTABLISHED UNDE R § 22 10–657.6 OF THE ECONOMIC DEVELOPMENT ARTICLE FROM THE MONE Y THAT 23 REMAINS IN THE STATE LOTTERY FUND FROM THE PROCEEDS OF ALL LOTTERIES 24 AFTER THE DISTRIBUTI ONS UNDER SUBSECTION (A) OF THIS SECTION AND ITEMS (I) 25 THROUGH (XI) OF THIS PARAGRAPH , AN AMOUNT NOT LESS T HAN $18,207,162; AND 26 2. after June 30, 2023 2024, into the Prince George’s County 27 Blue Line Corridor Facility Fund established under § 10–657.6 of the Economic 28 Development Article from the money that remains in the State Lottery Fund from the 29 proceeds of all lotteries after the distributions under subsection (a) of this section and items 30 (i) through (xi) of this paragraph, an amount not to exceed $27,000,000 to be paid in two 31 installments not later than November 1 and June 1 of each fiscal year; and 32 (xiii) into the General Fund of the State the money that remains in the 33 State Lottery Fund from the proceeds of all lotteries after the distributions under 34 subsection (a) of this section and items (i) through (xii) of this paragraph. 35 (2) The money paid into the General Fund under this subsection is 36 available in the fiscal year in which the money accumulates in the State Lottery Fund. 37 HOUSE BILL 764 7 (c) The regulations of the Agency shall apportion the money in the State Lottery 1 Fund in accordance with subsection (b) of this section. 2 Article – Transportation 3 2–802. 4 (a) (1) In this section the following words have the meanings indicated. 5 (2) “Bus rapid transit system” means a bus line that operates on at least 6 some portion of roadway dedicated to buses and offers off–board fare collection or another 7 form of high efficiency fare collection if a fare is charged. 8 (3) “Eligible grantee” means a county or municipal corporation that has: 9 (i) A bus rapid transit system that operates in the county or 10 municipal corporation; and 11 (ii) No ongoing or completed facility, as that term is defined in § 12 10–601(s)(1), (4), (8), (9), or (10) of the Economic Development Article. 13 (b) (1) Subject to paragraph (2) of this subsection, if WHEN a deposit or 14 payment is made in accordance with [§ 9–120(b)(1)(i)2 through 5] § 9–120(B)(1)(XI) of the 15 State Government Article into the Maryland Stadium Authority Facilities BUS RAPID 16 TRANSIT Fund established under § 7–312 § 2–802.1 of the State Finance and Procurement 17 Article THIS SUBTITLE, and there is only one eligible grantee, then the Department shall 18 award a grant to the eligible grantee equal to the amount distributed to the Department 19 under § 9–120(b)(1)(xi) of the State Government Article. 20 (2) (i) If there are two eligible grantees, and one eligible grantee is 21 Montgomery County, the Department shall distribute $20,000,000 to Montgomery County 22 and the remaining amount of the deposit or payment under § 9–120(b)(1)(xi) of the State 23 Government Article to the remaining eligible grantee. 24 (ii) If more than three counties or municipal corporations are eligible 25 grantees, and one eligible grantee is Montgomery County, then the Department shall 26 distribute: 27 1. Not less than $20,000,000 to Montgomery County if 28 Montgomery County remains an eligible county; and 29 2. The total remaining amount of the deposit or payment 30 under § 9–120(b)(1)(xi) of the State Government Article to the remaining eligible grantees 31 based on each eligible grantee’s pro rata share of the statewide population. 32 (iii) If Montgomery County is not an eligible grantee, and more than 33 one county or municipal corporation are eligible grantees, then the Department shall 34 8 HOUSE BILL 764 distribute the total amount of the deposit payment under § 9–120(b)(1)(xi) of the State 1 Government Article to the eligible grantees based on each eligible grantee’s pro rata share 2 of the statewide population. 3 (3) (i) Eligible grantees receiving funds in accordance with this 4 subsection and § 2–802.1 of this subtitle may use the grant funds for the: 5 1. Financing and refinancing of the costs related to the 6 construction, acquisition, improvement, equipping, rehabilitation, and expansion of bus 7 rapid transit system projects; 8 2. Payment of debt service on bonds issued to finance bus 9 rapid transit system projects; 10 3. Payment of all reasonable expenses and charges related to 11 bond issuance and borrowing; and 12 4. Payment of costs relating to the management and 13 operation of bus rapid transit system projects. 14 (ii) If an eligible grantee uses funds under this section for the 15 payment of debt service on bonds issued to finance bus rapid transit system projects, the 16 eligible grantee shall issue bonds in accordance with an ordinance or resolution which may 17 specify all matters relating to the advertisement, sale, issuance, delivery, and payment of 18 the bonds, including: 19 1. The forms, dates, and denominations of the bonds; 20 2. The principal maturities; 21 3. The methods to be used in determining interest payable 22 on the bonds; and 23 4. Any provisions for registration, redemption before stated 24 maturity, or the use of facsimile signatures or seals. 25 (c) The Department: 26 (1) Shall distribute grants under this section to eligible grantees in a timely 27 manner; and 28 (2) May not impose any additional conditions on an eligible grantee on 29 receipt of a grant under this section. 30 SECTION 2. AND BE IT FURTHER ENACTED, That: 31 HOUSE BILL 764 9 (a) On or before December 15, 2024, the Maryland Stadium Authority shall 1 submit to the House Appropriations Committee and the Senate Budget and Taxation 2 Committee, in accordance with § 2–1257 of the State Government Article, a report on: 3 (1) all public and private development activities currently under 4 construction or in the development process in the Prince George’s County Blue Line 5 Corridor for the next 30 years; and 6 (2) input from the representatives listed in subsection (b) of this section on 7 the future of the Prince George’s County Blue Line Corridor, including future projects and 8 opportunities to leverage federal, State, and local funding. 9 (b) In completing the report under subsection (a) of this section, the Maryland 10 Stadium Authority shall consult and meaningfully engage with: 11 (1) the members of the 24th legislative district; 12 (2) the Department of Housing and Community Development; 13 (3) the Maryland Department of Transportation; 14 (4) the Prince George’s County Planning Commission; 15 (5) the Prince George’s County Chamber of Commerce; 16 (6) the University of Maryland Capital Region Medical Center; 17 (7) the Prince George’s County government; and 18 (8) the Blue Line Corridor Coalition. 19 SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 20 June 1, 2024. 21 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.