EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb1012* SENATE BILL 1012 O3, O1 4lr2070 By: Senator Charles Introduced and read first time: February 2, 2024 Assigned to: Budget and Taxation and Education, Energy, and the Environment A BILL ENTITLED AN ACT concerning 1 Veterans Affairs – Disabled Veterans Guaranteed Basic Income 2 FOR the purpose of establishing the Disabled Veterans Guaranteed Basic Income Program; 3 establishing the Disabled Veterans Guaranteed Basic Income Fund as a special, 4 nonlapsing fund; requiring interest earnings of the Fund to be credited to the Fund; 5 requiring, beginning in a certain fiscal year, the Governor to include in the annual 6 budget bill a certain appropriation to the Fund; authorizing the appropriation to the 7 Fund to be drawn from the State Lottery Fund or video lottery terminal proceeds; 8 and generally relating to a guaranteed basic income for disabled veterans. 9 BY repealing and reenacting, without amendments, 10 Article – State Finance and Procurement 11 Section 6–226(a)(2)(i) 12 Annotated Code of Maryland 13 (2021 Replacement Volume and 2023 Supplement) 14 BY repealing and reenacting, with amendments, 15 Article – State Finance and Procurement 16 Section 6–226(a)(2)(ii)189. and 190. 17 Annotated Code of Maryland 18 (2021 Replacement Volume and 2023 Supplement) 19 BY adding to 20 Article – State Finance and Procurement 21 Section 6–226(a)(2)(ii)191. 22 Annotated Code of Maryland 23 (2021 Replacement Volume and 2023 Supplement) 24 BY repealing and reenacting, without amendments, 25 Article – State Government 26 Section 9–120(a) and (b)(2) and 9–901(a) and (c) 27 2 SENATE BILL 1012 Annotated Code of Maryland 1 (2021 Replacement Volume and 2023 Supplement) 2 BY repealing and reenacting, with amendments, 3 Article – State Government 4 Section 9–120(b)(1)(xii) and (xiii) and 9–1A–27(a) 5 Annotated Code of Maryland 6 (2021 Replacement Volume and 2023 Supplement) 7 BY adding to 8 Article – State Government 9 Section 9–120(b)(1)(xiii); and 9–960 through 9–964 to be under the new part “Part 10 IX. Disabled Veterans Guaranteed Basic Income” 11 Annotated Code of Maryland 12 (2021 Replacement Volume and 2023 Supplement) 13 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14 That the Laws of Maryland read as follows: 15 Article – State Finance and Procurement 16 6–226. 17 (a) (2) (i) Notwithstanding any other provision of law, and unless 18 inconsistent with a federal law, grant agreement, or other federal requirement or with the 19 terms of a gift or settlement agreement, net interest on all State money allocated by the 20 State Treasurer under this section to special funds or accounts, and otherwise entitled to 21 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 22 Fund of the State. 23 (ii) The provisions of subparagraph (i) of this paragraph do not apply 24 to the following funds: 25 189. the Teacher Retention and Development Fund; [and] 26 190. the Protecting Against Hate Crimes Grant Fund; AND 27 191. THE DISABLED VETERANS GUARANTEED BASIC 28 INCOME FUND. 29 Article – State Government 30 9–120. 31 (a) The Comptroller shall distribute, or cause to be distributed, the State Lottery 32 Fund to pay: 33 SENATE BILL 1012 3 (1) on a pro rata basis for the daily and nondaily State lottery games, the 1 expenses of administering and operating the State lottery, as authorized under this subtitle 2 and the State budget; and 3 (2) then, except as provided in § 10–113.1 of the Family Law Article, § 4 11–618 of the Criminal Procedure Article, and § 3–307 of the State Finance and 5 Procurement Article, the holder of each winning ticket or share. 6 (b) (1) By the end of the month following collection, the Comptroller shall 7 deposit, cause to be deposited, or pay: 8 (xii) after June 30, 2023, into the Prince George’s County Blue Line 9 Corridor Facility Fund established under § 10–657.6 of the Economic Development Article 10 from the money that remains in the State Lottery Fund from the proceeds of all lotteries 11 after the distributions under subsection (a) of this section and items (i) through (xi) of this 12 paragraph, an amount not to exceed $27,000,000 to be paid in two installments not later 13 than November 1 and June 1 of each fiscal year; [and] 14 (XIII) AFTER JUNE 30, 2024, INTO THE DISABLED VETERANS 15 GUARANTEED BASIC INCOME FUND ESTABLISHED U NDER § 9–963 OF THIS TITLE 16 FROM THE MONEY THAT REMAINS IN THE STATE LOTTERY FUND FROM THE 17 PROCEEDS OF ALL LOTT ERIES AFTER THE DIST RIBUTIONS UNDER SUBS ECTION (A) 18 OF THIS SECTION AND ITEMS (I) THROUGH (XII) OF THIS PARAGRAPH , AN AMOUNT 19 NOT TO EXCEED $5,000,000; AND 20 [(xiii)] (XIV) into the General Fund of the State the money that remains 21 in the State Lottery Fund from the proceeds of all lotteries after the distributions under 22 subsection (a) of this section and items (i) through [(xii)] (XIII) of this paragraph. 23 (2) The money paid into the General Fund under this subsection is 24 available in the fiscal year in which the money accumulates in the State Lottery Fund. 25 9–1A–27. 26 (a) Except as provided in subsections (b) and (c) of this section and § 27 9–1A–26(a)(3) of this subtitle, on a properly approved transmittal prepared by the 28 Commission, the Comptroller shall pay the following amounts from the proceeds of video 29 lottery terminals at each video lottery facility: 30 (1) (i) on or before March 31, 2015, 2% to the State Lottery and Gaming 31 Control Agency for costs as defined in § 9–1A–01 of this subtitle; and 32 (ii) beginning April 1, 2015, 1% to the State Lottery and Gaming 33 Control Agency for costs as defined in § 9–1A–01 of this subtitle; 34 4 SENATE BILL 1012 (2) to the video lottery operation licensee, the percentage stated in the 1 accepted application for the location, not to exceed, except as provided in subsection (b) of 2 this section, 33%; 3 (3) 5.5% in local impact grants, in accordance with § 9–1A–31 of this 4 subtitle; 5 (4) 6% to the Purse Dedication Account established under § 9–1A–28 of this 6 subtitle, not to exceed a total of $100,000,000 to the Account annually; 7 (5) (i) until the issuance of a video lottery operation license in 8 Baltimore City, 1.75% to the Racetrack Facility Renewal Account established under § 9 9–1A–29 of this subtitle and distributed in accordance with that section; and 10 (ii) on or after the issuance of a video lottery operation license in 11 Baltimore City, 1% to the Racetrack Facility Renewal Account established under § 12 9–1A–29 of this subtitle and distributed in accordance with that section, not to exceed a 13 total of $20,000,000 to the Account annually; 14 (6) (i) except as provided in items (ii) and (iii) of this item, 1.5% to the 15 Small, Minority, and Women–Owned Businesses Account established under § 5–1501 of 16 the Economic Development Article; 17 (ii) for fiscal year 2018, 1.5% to the General Fund to pay a portion of 18 the costs of the grants provided under Chapters 6 and 607 of the Acts of the General 19 Assembly of 2017; and 20 (iii) for fiscal years 2019 and 2020, 1.5% to the Education Trust Fund 21 established under § 9–1A–30 of this subtitle; 22 (7) (i) except as provided in items (ii) and (iii) of this item, 6% to the 23 video lottery operation licensee if the video lottery operation licensee owns or leases each 24 video lottery terminal device and the associated equipment and software; 25 (ii) 8% to the video lottery operation licensee in Anne Arundel 26 County; and 27 (iii) 10% to the video lottery operation licensee in Allegany County or 28 Worcester County if the video lottery operation licensee assumes ownership or the right to 29 lease each video lottery terminal device and the associated equipment and software used 30 by the facility before January 1, 2019; 31 (8) beginning after the issuance of a video lottery operation license for a 32 video lottery facility in Prince George’s County, 8% to the video lottery operation licensee 33 in Anne Arundel County and 7% to the licensee in Baltimore City for: 34 SENATE BILL 1012 5 (i) marketing, advertising, and promotional costs required under § 1 9–1A–23 of this subtitle; and 2 (ii) capital improvements at the video lottery facilities; 3 (9) to each video lottery operation licensee, an amount equal to 20% of the 4 amount paid by the video lottery licensee under § 9–1A–13 of this subtitle, for costs required 5 under § 9–1A–23 of this subtitle for marketing, advertising, and promotions that 6 exclusively target out–of–state audiences; [and] 7 (10) TO THE DISABLED VETERANS GUARANTEED BASIC INCOME 8 FUND, TO BE AVAILABLE FOR THE APPROPRIATION RE QUIRED UNDER § 9–964 OF 9 THIS TITLE; AND 10 (11) the remainder to the Education Trust Fund established under § 11 9–1A–30 of this subtitle. 12 9–901. 13 (a) In this subtitle the following words have the meanings indicated. 14 (c) “Department” means the Department of Veterans Affairs. 15 9–958. RESERVED. 16 9–959. RESERVED. 17 PART IX. DISABLED VETERANS GUARANTEED BASIC INCOME. 18 9–960. 19 (A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS 20 INDICATED. 21 (B) “DISABLED VETERAN ” MEANS AN INDIVIDUAL WHO: 22 (1) IS HONORABLY DISCHAR GED OR RELEASED UNDE R HONORABLE 23 CIRCUMSTANCES FROM A CTIVE MILITARY , NAVAL, AIR, OR SPACE SERVICE AS 24 DEFINED IN 38 U.S.C. § 101 AFTER 4 OR MORE YEARS OF ACT IVE DUTY SERVICE ; 25 (2) IS AT LEAST 6 MONTHS REMOVED FROM THE SEPARATION OF 26 SERVICE THAT QUALIFI ES THE INDIVIDUAL UN DER ITEM (3) OF THIS SUBSECTION ; 27 AND 28 6 SENATE BILL 1012 (3) HAS BEEN DECLARED BY THE U.S. DEPARTMENT OF VETERANS 1 AFFAIRS TO HAVE A PER MANENT 70% SERVICE–CONNECTED DISABILITY THAT 2 RESULTS FROM BLINDNES S OR ANY OTHER DISABLING CAUS E THAT: 3 (I) IS REASONABLY CERTAI N TO CONTINUE FOR TH E LIFE OF 4 THE VETERAN ; AND 5 (II) WAS NOT CAUSED OR IN CURRED BY MISCONDUCT OF THE 6 VETERAN. 7 (C) “ENROLLED” MEANS THE DEPARTMENT HAS REVIEW ED AND ACCEPTED 8 AN INDIVIDUAL ’S APPLICATION TO REC EIVE BASIC INCOME TH ROUGH THE 9 PROGRAM. 10 (D) “FUND” MEANS THE DISABLED VETERANS GUARANTEED BASIC 11 INCOME FUND. 12 (E) “PROGRAM” MEANS THE DISABLED VETERANS GUARANTEED BASIC 13 INCOME PROGRAM. 14 9–961. 15 (A) THERE IS A DISABLED VETERANS GUARANTEED BASIC INCOME 16 PROGRAM. 17 (B) THE PROGRAM SHALL BE ADMINISTERED BY THE DEPARTMENT . 18 9–962. 19 (A) THE DEPARTMENT SHALL : 20 (1) ESTABLISH A PROCESS TO REVIEW THE ELIGIB ILITY OF A 21 DISABLED VETERAN TO ENROLL IN THE PROGRAM; 22 (2) ENROLL ELIGIBLE DISABLED VE TERANS INTO THE PROGRAM; 23 AND 24 (3) DISTRIBUTE $200 PER MONTH FROM THE FUND TO AN ENROLLED 25 DISABLED VETERAN . 26 (B) THE DEPARTMENT SHALL REVI EW THE ELIGIBILITY O F AN ENROLLED 27 DISABLED VETERAN ON A REGULAR BASIS . 28 SENATE BILL 1012 7 (C) THE DEPARTME NT MAY ADOPT REGULAT IONS TO IMPLEMENT TH IS 1 PART. 2 9–963. 3 (A) THERE IS A DISABLED VETERANS GUARANTEED BASIC INCOME FUND. 4 (B) THE PURPOSE OF THE FUND IS TO PROVIDE AD EQUATE FUNDING FOR A 5 GUARANTEED BASIC INC OME BENEFIT FOR DISABLED VETERAN S. 6 (C) THE DEPARTMENT SHALL ADMINISTER THE FUND. 7 (D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 8 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 10 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 11 (E) THE FUND CONSISTS OF : 12 (1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 13 (2) INTEREST EARNINGS ; AND 14 (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 15 THE BENEFIT OF THE FUND. 16 (F) THE FUND MAY BE USED ONLY FOR: 17 (1) PROVIDING GUARANTEED BASIC INCOME TO DISA BLED VETERANS 18 ENROLLED IN THE PROGRAM; AND 19 (2) ADMINISTRATIVE EXPEN SES. 20 (G) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 21 THE SAME MANNER AS O THER STATE MONEY MAY BE IN VESTED. 22 (H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 23 WITH THE STATE BUDGET . 24 9–964. 25 8 SENATE BILL 1012 (A) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THE REAFTER, THE 1 GOVERNOR SHALL INCLUDE IN THE ANNUA L BUDGET BILL AN APPROPRIATION OF 2 $5,000,000 TO THE FUND. 3 (B) TO MAKE THE APPROPRIA TION REQUIRED UNDER SUBSECTION (A) OF 4 THIS SECTION, THE GOVERNOR MAY DRAW FROM : 5 (1) THE STATE LOTTERY FUND; OR 6 (2) THE PROCEEDS OF VIDE O LOTTERY TERMINALS AT EACH VIDEO 7 LOTTERY FACILITY , AS PROVIDED IN § 9–1A–27 OF THIS TITLE. 8 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9 1, 2024. 10