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