Maryland 2024 2024 Regular Session

Maryland Senate Bill SB1116 Introduced / Bill

Filed 02/13/2024

                     
 
EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. 
        [Brackets] indicate matter deleted from existing law. 
          *sb1116*  
  
SENATE BILL 1116 
C8, R2, C7   	4lr3414 
    	CF HB 764 
By: Senator Zucker 
Introduced and read first time: February 7, 2024 
Assigned to: Rules 
 
A BILL ENTITLED 
 
AN ACT concerning 1 
 
State Lottery Fund – Bus Rapid Transit Fund Distribution – Alterations  2 
 
FOR the purpose of repealing a certain limitation on the distribution of up to a certain 3 
amount of money from the State Lottery Fund to the Bus Rapid Transit Fund for 4 
certain bus rapid transit system grants; altering the circumstances for distributions 5 
from the Bus Rapid Transit Fund; and generally relating to the State Lottery Fund 6 
and the Bus Rapid Transit Fund.  7 
 
BY repealing and reenacting, with amendments, 8 
 Article – State Government 9 
Section 9–120 10 
 Annotated Code of Maryland 11 
 (2021 Replacement Volume and 2023 Supplement) 12 
 
BY repealing and reenacting, with amendments, 13 
 Article – Transportation 14 
Section 2–802 15 
Annotated Code of Maryland 16 
 (2020 Replacement Volume and 2023 Supplement) 17 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18 
That the Laws of Maryland read as follows: 19 
 
Article – State Government 20 
 
9–120. 21 
 
 (a) The Comptroller shall distribute, or cause to be distributed, the State Lottery 22 
Fund to pay: 23 
  2 	SENATE BILL 1116  
 
 
 (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 
 
 (i) 1. After June 30, 2023, but not later than June 30, 2026, into 9 
the Maryland Stadium Facilities Fund established under § 7–312 of the State Finance and 10 
Procurement Article from the money that remains in the State Lottery Fund, after the 11 
distribution under subsection (a) of this section, an amount not to exceed $14,200,000 in 12 
each fiscal year; 13 
 
 2. after June 30, 2023, but not later than June 30, 2026, from 14 
the money that remains in the State Lottery Fund after the distribution under subsection 15 
(a) of this section, an amount for each fiscal year not to exceed: 16 
 
 A. $34,900,000 into the Camden Yards Football Sports 17 
Facility Supplemental Financing Fund established under § 10–652.1 of the Economic 18 
Development Article; and 19 
 
 B. $40,900,000 into the Camden Yards Baseball Sports 20 
Facility Supplemental Financing Fund established under § 10–652.2 of the Economic 21 
Development Article; 22 
 
 3. after June 30, 2026, but not later than June 30, 2039, into 23 
the Maryland Stadium Facilities Fund established under § 7–312 of the State Finance and 24 
Procurement Article from the money that remains in the State Lottery Fund, after the 25 
distribution under subsection (a) of this section, an amount not to exceed $3,360,000 in each 26 
fiscal year; 27 
 
 4. after June 30, 2026, but not later than June 30, 2039, from 28 
the money that remains in the State Lottery Fund after the distribution under subsection 29 
(a) of this section, an amount for each fiscal year not to exceed: 30 
 
 A. $45,000,000 into the Camden Yards Football Sports 31 
Facility Supplemental Financing Fund established under § 10–652.1 of the Economic 32 
Development Article; and 33 
 
 B. $41,640,000 into the Camden Yards Baseball Sports 34 
Facility Supplemental Financing Fund established under § 10–652.2 of the Economic 35 
Development Article; and 36 
   	SENATE BILL 1116 	3 
 
 
 5. after June 30, 2039, from the money that remains in the 1 
State Lottery Fund after the distribution under subsection (a) of this section, an amount 2 
for each fiscal year not to exceed: 3 
 
 A. $45,000,000 into the Camden Yards Football Sports 4 
Facility Supplemental Financing Fund established under § 10–652.1 of the Economic 5 
Development Article; and 6 
 
 B. $45,000,000 into the Camden Yards Baseball Sports 7 
Facility Supplemental Financing Fund established under § 10–652.2 of the Economic 8 
Development Article; 9 
 
 (ii) after June 30, 2014, into the Maryland Veterans Trust Fund 10% 10 
of the money that remains in the State Lottery Fund from the proceeds of sales of tickets 11 
from instant ticket lottery machines by veterans’ organizations under § 9–112(d) of this 12 
subtitle, after the distribution under subsection (a) of this section; 13 
 
 (iii) after June 30, 2014, into the Baltimore City Public School 14 
Construction Financing Fund established under § 10–656 of the Economic Development 15 
Article the money that remains in the State Lottery Fund from the proceeds of all lotteries 16 
after the distributions under subsection (a) of this section and items (i) and (ii) of this 17 
paragraph, an amount equal to $20,000,000 in each fiscal year that bonds are outstanding 18 
and unpaid, to be paid in two installments with at least $10,000,000 paid no later than 19 
December 1 of each fiscal year; 20 
 
 (iv) after June 30, 2021, into the Racing and Community 21 
Development Financing Fund established under § 10–657.2 of the Economic Development 22 
Article from the money that remains in the State Lottery Fund, after the distribution under 23 
subsection (a) of this section, an amount equal to $17,000,000 in each fiscal year until the 24 
bonds issued for a racing facility have matured; 25 
 
 (v) after June 30, 2020, into the Michael Erin Busch Sports Fund 26 
established under § 10–612.2 of the Economic Development Article from the money that 27 
remains in the State Lottery Fund from the proceeds of all lotteries after the distributions 28 
under subsection (a) of this section and items (i) through (iv) of this paragraph, an amount 29 
equal to $1,000,000 in each fiscal year; 30 
 
 (vi) after June 30, 2021, a grant to the Maryland Humanities Council 31 
for Maryland History Day and other programming from the money that remains in the 32 
State Lottery Fund after the distributions under subsection (a) of this section and items (i) 33 
through (v) of this paragraph, an amount equal to $150,000 in each fiscal year; 34 
 
 (vii) after June 30, 2021, to Anne Arundel County or Baltimore City 35 
each fiscal year the amount required to be distributed under § 9–1A–31(a)(7)(ii) of this title 36 
to be used as required under § 9–1A–31 of this title; 37 
  4 	SENATE BILL 1116  
 
 
 (viii) after June 30, 2022, into the Maggie McIntosh School Arts Fund 1 
established under § 5–243 of the Education Article from the money that remains in the 2 
State Lottery Fund from the proceeds of all other lotteries after the distributions under 3 
subsection (a) of this section and items (i) through (vii) of this paragraph, an amount equal 4 
to $250,000 in each fiscal year; 5 
 
 (ix) after June 1, 2022, to the Sports Entertainment Facilities 6 
Financing Fund established under § 10–657.5 of the Economic Development Article from 7 
the money that remains in the State Lottery Fund from the proceeds of all lotteries after 8 
the distributions under subsection (a) of this section and items (i) through (viii) of this 9 
paragraph, an amount not to exceed $25,000,000 to be paid in two installments not later 10 
than November 1 and June 1 of each fiscal year; 11 
 
 (x) after June 30, 2022, to the Major Sports and Entertainment 12 
Event Program Fund established under § 10–611.2 of the Economic Development Article 13 
from the money that remains in the State Lottery Fund from the proceeds of all lotteries 14 
after the distributions under subsection (a) of this section and items (i) through (ix) of this 15 
paragraph: 16 
 
 1. for fiscal year 2023, an amount equal to $10,000,000; and 17 
 
 2. for each fiscal year thereafter, the amount necessary to 18 
restore the Major Sports and Entertainment Event Program Fund to a balance of 19 
$10,000,000; 20 
 
 (xi) [if a deposit or payment is made under item (i)2 through 5 of this 21 
paragraph, an amount equal to the total deposit or payment under item (i)2 through 5 of 22 
this paragraph, but not exceeding $27,000,000, into] AFTER JUNE 30, 2024, INTO the Bus 23 
Rapid Transit Fund established under § 2–802.1 of the Transportation Article for bus rapid 24 
transit system grants in accordance with § 2–802 of the Transportation Article from the 25 
money that remains in the State Lottery Fund from the proceeds of all lotteries after the 26 
distributions under subsection (a) of this section and items (i) through (x) of this paragraph, 27 
AN AMOUNT EQUAL TO $27,000,000 IN EACH FISCAL YEAR ; 28 
 
 (xii) after June 30, 2023, into the Prince George’s County Blue Line 29 
Corridor Facility Fund established under § 10–657.6 of the Economic Development Article 30 
from the money that remains in the State Lottery Fund from the proceeds of all lotteries 31 
after the distributions under subsection (a) of this section and items (i) through (xi) of this 32 
paragraph, an amount not to exceed $27,000,000 to be paid in two installments not later 33 
than November 1 and June 1 of each fiscal year; and 34 
 
 (xiii) into the General Fund of the State the money that remains in the 35 
State Lottery Fund from the proceeds of all lotteries after the distributions under 36 
subsection (a) of this section and items (i) through (xii) of this paragraph. 37 
 
 (2) The money paid into the General Fund under this subsection is 38 
available in the fiscal year in which the money accumulates in the State Lottery Fund. 39   	SENATE BILL 1116 	5 
 
 
 
 (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 a deposit or payment is 14 
made in accordance with [§ 9–120(b)(1)(i)2 through 5] § 9–120(B)(1)(XI) of the State 15 
Government Article into the Maryland Stadium Authority Facilities Fund established 16 
under § 7–312 of the State Finance and Procurement Article, and there is only one eligible 17 
grantee, then the Department shall award a grant to the eligible grantee equal to the 18 
amount distributed to the Department under § 9–120(b)(1)(xi) of the State Government 19 
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 
  6 	SENATE BILL 1116  
 
 
 (iii) If Montgomery County is not an eligible grantee, and more than 1 
one county or municipal corporation are eligible grantees, then the Department shall 2 
distribute the total amount of the deposit payment under § 9–120(b)(1)(xi) of the State 3 
Government Article to the eligible grantees based on each eligible grantee’s pro rata share 4 
of the statewide population. 5 
 
 (3) (i) Eligible grantees receiving funds in accordance with this 6 
subsection and § 2–802.1 of this subtitle may use the grant funds for the: 7 
 
 1. Financing and refinancing of the costs related to the 8 
construction, acquisition, improvement, equipping, rehabilitation, and expansion of bus 9 
rapid transit system projects; 10 
 
 2. Payment of debt service on bonds issued to finance bus 11 
rapid transit system projects; 12 
 
 3. Payment of all reasonable expenses and charges related to 13 
bond issuance and borrowing; and 14 
 
 4. Payment of costs relating to the management and 15 
operation of bus rapid transit system projects. 16 
 
 (ii) If an eligible grantee uses funds under this section for the 17 
payment of debt service on bonds issued to finance bus rapid transit system projects, the 18 
eligible grantee shall issue bonds in accordance with an ordinance or resolution which may 19 
specify all matters relating to the advertisement, sale, issuance, delivery, and payment of 20 
the bonds, including: 21 
 
 1. The forms, dates, and denominations of the bonds; 22 
 
 2. The principal maturities; 23 
 
 3. The methods to be used in determining interest payable 24 
on the bonds; and 25 
 
 4. Any provisions for registration, redemption before stated 26 
maturity, or the use of facsimile signatures or seals. 27 
 
 (c) The Department: 28 
 
 (1) Shall distribute grants under this section to eligible grantees in a timely 29 
manner; and 30 
 
 (2) May not impose any additional conditions on an eligible grantee on 31 
receipt of a grant under this section. 32 
   	SENATE BILL 1116 	7 
 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1 
1, 2024. 2