EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW . [Brackets] indicate matter deleted from existing law. *sb0857* SENATE BILL 857 M1, R4 4lr1612 CF HB 866 By: Senator McKay Introduced and read first time: February 2, 2024 Assigned to: Judicial Proceedings A BILL ENTITLED AN ACT concerning 1 Off–Highway Recreational Vehicle Trail Fund and Off–Highway Recreational 2 Vehicle Recreation Oversight Board – Alterations and Establishment 3 FOR the purpose of altering the contents and authorized uses of the Off–Highway 4 Recreational Vehicle Trail Fund; establishing the Off–Highway Recreational Vehicle 5 Recreation Oversight Board to advise the Secretary of Natural Resources on certain 6 matters and review and approve certain expenditures; altering the percentages of 7 the revenue from a certain excise tax the Comptroller is required to distribute to the 8 Off–Highway Recreational Vehicle Trail Fund in certain fiscal years; and generally 9 relating to the Off–Highway Recreational Vehicle Trail Fund and the Off–Highway 10 Recreational Vehicle Recreation Oversight Board. 11 BY repealing and reenacting, with amendments, 12 Article – Natural Resources 13 Section 5–209(b)(3) and 5–1011 14 Annotated Code of Maryland 15 (2023 Replacement Volume and 2023 Supplement) 16 BY adding to 17 Article – Natural Resources 18 Section 5–1011.1 19 Annotated Code of Maryland 20 (2023 Replacement Volume and 2023 Supplement) 21 BY repealing and reenacting, with amendments, 22 Article – Transportation 23 Section 13–814 24 Annotated Code of Maryland 25 (2020 Replacement Volume and 2023 Supplement) 26 2 SENATE BILL 857 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Natural Resources 3 5–209. 4 (b) (3) (i) [Prior to] BEFORE March 31, 1976, every off–road vehicle to be 5 used on Department lands shall be registered and provided suitable identification by the 6 Department, which shall charge an annual uniform fee for all registrants, revenues derived 7 from which shall be used to acquire and maintain areas for off–road vehicle use by the 8 general public. 9 (ii) 1. Any investment earnings derived from the revenues shall 10 be credited to the [General Fund of the State] OFF–HIGHWAY RECREATIONAL VEHICLE 11 TRAIL FUND ESTABLISHED UNDE R § 5–1011 OF THIS TITLE. 12 2. Revenues from the fee are not subject to § 7–302 of the 13 State Finance and Procurement Article. 14 (iii) Revenues may be used for administrative costs calculated in 15 accordance with § 1–103(b)(2) of this article. 16 5–1011. 17 (a) In this section, “Fund” means the Off–Highway Recreational Vehicle Trail 18 Fund. 19 (b) There is an Off–Highway Recreational Vehicle Trail Fund. 20 (c) The purpose of the Fund is to maintain and construct trails for off–highway 21 recreational vehicles. 22 (d) The Secretary shall administer the Fund. 23 (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 24 the State Finance and Procurement Article. 25 (2) The State Treasurer shall hold the Fund separately, and the 26 Comptroller shall account for the Fund. 27 (f) The Fund consists of: 28 (1) Revenue distributed to the Fund under § 13 –814(b) of the 29 Transportation Article; 30 (2) Money appropriated in the State budget for the Fund; 31 SENATE BILL 857 3 (3) MONEY GENERATED FROM OFF–ROAD VEHICLE REGISTRATIONS 1 UNDER § 5–209 OF THIS TITLE; and 2 [(3)] (4) Any other money from any other source accepted for the benefit 3 of the Fund. 4 (g) [The] SUBJECT TO § 5–1011.1(I) OF THIS SUBTITLE , THE Fund may be 5 used only to: 6 (1) Maintain trails for off–highway recreational vehicles on State park land 7 that was purchased or leased by the Department before January 1, [2017] 2024; 8 (2) Maintain and construct trails for off–highway recreational vehicles on 9 State park land that is purchased or leased by the Department on or after January 1, [2017] 10 2024; [and] 11 (3) Maintain and construct trails for off–highway recreational vehicles on 12 any land that is not State park land that is purchased or leased by the Department; AND 13 (4) MAINTAIN THE OFF–HIGHWAY RECREATIONAL VEHICLE 14 RECREATION OVERSIGHT BOARD ESTABLISHED UND ER § 5–1011.1 OF THIS 15 SUBTITLE. 16 (h) (1) The State Treasurer shall invest the money of the Fund in the same 17 manner as other State money may be invested. 18 (2) Any interest earnings of the Fund shall be credited to the General Fund 19 of the State. 20 (i) Expenditures from the Fund may be made only in accordance with the State 21 budget. 22 (j) Money expended from the Fund for maintaining and constructing trails for 23 off–highway recreational vehicles is supplemental to and is not intended to take the place 24 of funding that otherwise would be appropriated for maintaining and constructing trails 25 for off–highway recreational vehicles. 26 (K) ON OR BEFORE DECEMBER 31 EACH YEAR, BEGINNING IN 2024, THE 27 SECRETARY SHALL PUBLI SH ON THE DEPARTMENT ’S WEBSITE A REPORT 28 DETAILING THE USE OF THE FUND. 29 5–1011.1. 30 4 SENATE BILL 857 (A) (1) IN THIS SECTION THE F OLLOWING WORD S HAVE THE MEANINGS 1 INDICATED. 2 (2) “BOARD” MEANS THE OFF–HIGHWAY RECREATIONAL VEHICLE 3 RECREATION OVERSIGHT BOARD. 4 (3) “FUND” MEANS THE OFF–HIGHWAY RECREATIONAL VEHICLE 5 TRAIL FUND ESTABLISHED UNDE R § 5–1011 OF THIS SUBTITLE. 6 (B) THERE IS AN OFF–HIGHWAY RECREATIONAL VEHICLE RECREATION 7 OVERSIGHT BOARD. 8 (C) (1) THE BOARD CONSISTS OF THE FO LLOWING MEMBERS , 9 APPOINTED BY THE GOVERNOR: 10 (I) ONE REPRESENTATIVE OF THE MARYLAND OFF–HIGHWAY 11 VEHICLE ALLIANCE; 12 (II) ONE REPRESENTATIVE OF THE MARYLAND MOTORCYCLE 13 DEALERS ASSOCIATION; 14 (III) ONE REPRESENTATIVE OF THE AMERICAN MOTORCYCLIST 15 ASSOCIATION DISTRICT 7; 16 (IV) ONE INDIVIDUAL REPRESENTING ALL–TERRAIN VEHICLE , 17 UTILITY TERRAIN VEHI CLE, OR SIDE–BY–SIDE VEHICLE DRIVERS; AND 18 (V) ONE INDIVIDUAL REPRES ENTING ON – AND OFF–ROAD 19 MOTOR VEHICLE DRIVER S. 20 (2) EACH MEMBER SHALL BE A RESIDENT OF THE STATE. 21 (D) FROM AMONG ITS MEMBER S, THE BOARD SHALL ELECT A C HAIR EACH 22 YEAR. 23 (E) (1) THE TERM OF A MEMBER IS 4 YEARS. 24 (2) THE TERM O F A MEMBER IS STAGGE RED AS REQUIRED BY T HE 25 TERMS PROVIDED FOR M EMBERS OF THE BOARD ON OCTOBER 1, 2024. 26 (3) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 27 A SUCCESSOR IS APPOI NTED AND QUALIFIES . 28 SENATE BILL 857 5 (4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 1 ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 2 QUALIFIES. 3 (5) IF A VACANCY OCCURS A MONG THE MEMBERS , THE GOVERNOR 4 SHALL PROMPTLY APPOI NT A SUCCESSOR WHO S HALL SERVE UNTIL THE TERM 5 EXPIRES. 6 (F) (1) THE DEPARTMENT SH ALL PROVIDE STAFF FO R THE BOARD. 7 (2) ADDITIONAL SUPPORT FO R THE BOARD SHALL BE PROVID ED BY: 8 (I) THE SECRETARY, OR THE SECRETARY’S DESIGNEE; 9 (II) THE MARYLAND PARK SERVICE; 10 (III) THE FOREST SERVICE; 11 (IV) THE WILDLIFE AND HERITAGE SERVICE; AND 12 (V) ONE REPRESENTATIVE OF EACH COUNTY IN WHICH AN 13 OFF–HIGHWAY RECREATIONAL VEHICLE TRAIL MAINTA INED BY THE DEPARTMENT 14 IS LOCATED, DESIGNATED BY THE DEPARTMENT . 15 (G) THE BOARD SHALL MEET AT LEAST QUARTERLY . 16 (H) THE BOARD SHALL: 17 (1) ADVISE THE SECRETARY ON THE OPER ATION, ACQUISITION, 18 REGULATION , AND GENERAL OVERSIGH T OF OFF –HIGHWAY RECREATIONAL 19 VEHICLE TRAILS AND R ECREATION IN THE STATE; AND 20 (2) REVIEW AND APPROVE EX PENDITURES FROM THE FUND IN 21 ACCORDANCE WITH SUBS ECTION (I) OF THIS SECTION. 22 (I) AN EXPENDITURE FROM T HE FUND SHALL BE REVIEWED AN D 23 APPROVED BY THE BOARD IN ACCORDANCE W ITH THE FOLLOWING RE QUIREMENTS : 24 (1) AT LEAST 25% OF THE ANNUAL FUND BALANCE SHALL BE USED 25 FOR TRAIL DEVELOPMEN T; 26 (2) AT LEAST 10% OF THE ANNUAL FUND BALANCE SHALL BE USED 27 FOR OFF–HIGHWAY RECREATIONAL VEHICLE TRAIL MAINTENANCE ; 28 6 SENATE BILL 857 (3) AT LEAST 10% OF THE ANNUAL FUND BALANCE SHALL BE USED 1 FOR THE DEVELOPMENT OR MAINTENANCE OF CA MPING SITES, PARKING, OR OTHER 2 INFRASTRUCTURE NECES SARY TO SUPPORT OFF –HIGHWAY RECREATIONAL 3 VEHICLE RIDERS AND R ECREATIONAL ACTIVITI ES ON LANDS MANAGED PRIMARILY 4 FOR OFF–HIGHWAY RECREATIONAL VEHICLE USE; 5 (4) AT LEAST 5% OF THE ANNUAL FUND BALANCE SHALL BE USED TO 6 LEASE LANDS FOR PUBL IC OFF–HIGHWAY RECREATIO NAL VEHICLE USE ; 7 (5) AT LEAST 10% OF THE ANNUAL FUND BALANCE SHALL BE 8 AUTHORIZED TO ADVERT ISE, PROMOTE, AND MARKET OFF –HIGHWAY 9 RECREATIONAL VEHICLE USE AND EDUCATION IN THE STATE; AND 10 (6) FUNDS FROM THE FUND SHALL BE USED TO COVER THE 11 ADMINISTRATIVE AND OPERATING COSTS OF T HE BOARD IN AN AMOUNT 12 DETERMINED NECESSARY BY THE BOARD. 13 Article – Transportation 14 13–814. 15 (a) Except as provided in subsection (b) of this section, money collected under this 16 part shall be deposited in the State Treasury and accounted for on the records of the 17 Comptroller and transferred to the Transportation Trust Fund. 18 (b) Of the revenue from the excise tax imposed for each certificate of title issued 19 for an off–highway recreational vehicle under § 13–809 of this subtitle, the Comptroller 20 shall distribute to the Off–Highway Recreational Vehicle Trail Fund established under § 21 5–1011 of the Natural Resources Article: 22 (1) [25%] 75% in fiscal year [2019] 2026; and 23 (2) [50%] 95% in fiscal year [2020] 2027 and each year thereafter. 24 SECTION 2. AND BE IT FURTHER ENACTED, That the terms of the initial 25 appointed members of the Off–Highway Recreational Vehicle Recreation Oversight Board 26 established under Section 1 of this Act shall expire as follows: 27 (1) one member in 2025; 28 (2) two members in 2026; and 29 (3) two members in 2027. 30 SENATE BILL 857 7 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 1 October 1, 2024. 2