1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb1068* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 1068 |
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8 | 8 | | R2 5lr3225 |
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9 | 9 | | HB 1070/24 – ENT & APP |
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10 | 10 | | By: Delegates J. Long and Stewart |
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11 | 11 | | Introduced and read first time: February 5, 2025 |
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12 | 12 | | Assigned to: Environment and Transportation and Appropriations |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Maryland Transportation Authority – Tolls – Collection and Use 2 |
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19 | 19 | | (Maryland Toll Rate Reform Act of 2025) 3 |
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20 | 20 | | |
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21 | 21 | | FOR the purpose of establishing the Transportation Facilities Overage Account in the 4 |
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22 | 22 | | Transportation Trust Fund; requiring the Maryland Transportation Authority to fix, 5 |
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23 | 23 | | revise, charge, and collect fees, tolls, and other charges for the use of transportation 6 |
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24 | 24 | | facilities under its jurisdiction to maximize revenues above certain amounts and to 7 |
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25 | 25 | | distribute the additional revenues to the Transportation Facilities Overage Account 8 |
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26 | 26 | | for certain purposes; establishing certain standards under which the Authority is 9 |
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27 | 27 | | required to set certain toll rates; and generally relating to the collection and use of 10 |
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28 | 28 | | revenue by the Maryland Transportation Authority. 11 |
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29 | 29 | | |
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30 | 30 | | BY repealing and reenacting, without amendments, 12 |
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31 | 31 | | Article – Transportation 13 |
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32 | 32 | | Section 3–215(a), 3–216(a), and 4–312(a)(2) and (b) 14 |
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33 | 33 | | Annotated Code of Maryland 15 |
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34 | 34 | | (2020 Replacement Volume and 2024 Supplement) 16 |
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35 | 35 | | |
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36 | 36 | | BY repealing and reenacting, with amendments, 17 |
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37 | 37 | | Article – Transportation 18 |
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38 | 38 | | Section 3–215(b), 3–216(c)(2)(i), and 4–312(c) 19 |
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39 | 39 | | Annotated Code of Maryland 20 |
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40 | 40 | | (2020 Replacement Volume and 2024 Supplement) 21 |
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41 | 41 | | |
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42 | 42 | | BY adding to 22 |
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43 | 43 | | Article – Transportation 23 |
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44 | 44 | | Section 3–216(d)(6) and 4–312(b–1) 24 |
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45 | 45 | | Annotated Code of Maryland 25 |
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46 | 46 | | (2020 Replacement Volume and 2024 Supplement) 26 |
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47 | 47 | | 2 HOUSE BILL 1068 |
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48 | 48 | | |
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49 | 49 | | |
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50 | 50 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 |
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51 | 51 | | That the Laws of Maryland read as follows: 2 |
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52 | 52 | | |
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53 | 53 | | Article – Transportation 3 |
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54 | 54 | | |
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55 | 55 | | 3–215. 4 |
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56 | 56 | | |
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57 | 57 | | (a) (1) For the purpose of paying the principal of and interest on consolidated 5 |
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58 | 58 | | transportation bonds as they become due and payable, there is hereby levied and imposed 6 |
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59 | 59 | | an annual tax that consists of the taxes specified in this section and, to the extent necessary 7 |
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60 | 60 | | and except as otherwise provided in this subsection, that shall be used and applied 8 |
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61 | 61 | | exclusively for that purpose. 9 |
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62 | 62 | | |
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63 | 63 | | (2) The required use and application of the tax under paragraph (1) of this 10 |
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64 | 64 | | subsection is subject only to the prior use and application of one or all or any combination 11 |
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65 | 65 | | of the taxes specified in this section to meet the debt service on all of the following bonds 12 |
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66 | 66 | | while they are outstanding and unpaid and to the payment of which any part of those taxes 13 |
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67 | 67 | | has been pledged: 14 |
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68 | 68 | | |
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69 | 69 | | (i) Bonds of prior issues; and 15 |
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70 | 70 | | |
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71 | 71 | | (ii) Bonds of any series of county transportation bonds issued under 16 |
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72 | 72 | | Subtitle 3 of this title. 17 |
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73 | 73 | | |
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74 | 74 | | (b) The tax levied and imposed by this section consists of that part of the following 18 |
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75 | 75 | | taxes that are retained to the credit of the Department after distributions to the political 19 |
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76 | 76 | | subdivisions: 20 |
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77 | 77 | | |
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78 | 78 | | (1) The motor fuel tax revenue distributed under §§ 2–1103(2), 2–1103(3), 21 |
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79 | 79 | | and 2–1104(a)(3) of the Tax – General Article; 22 |
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80 | 80 | | |
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81 | 81 | | (2) The motor fuel tax revenue attributable to the sales and use tax 23 |
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82 | 82 | | equivalent rate imposed under § 9–306 of the Tax – General Article and distributed under 24 |
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83 | 83 | | § 2–1103(4) of the Tax – General Article; 25 |
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84 | 84 | | |
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85 | 85 | | (3) The income tax revenue distributed under § 2–614 of the Tax – General 26 |
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86 | 86 | | Article; 27 |
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87 | 87 | | |
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88 | 88 | | (4) The excise tax imposed on vehicles by Part II of Title 13, Subtitle 8 of 28 |
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89 | 89 | | this article; 29 |
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90 | 90 | | |
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91 | 91 | | (5) The sales and use tax revenues distributed under § 2–1302.1 of the Tax 30 |
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92 | 92 | | – General Article; [and] 31 |
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93 | 93 | | |
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94 | 94 | | (6) The transportation network company impact fee revenues allocated 32 |
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95 | 95 | | under § 3–216(d)(5)(i)1 of this subtitle; AND 33 |
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96 | 96 | | HOUSE BILL 1068 3 |
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97 | 97 | | |
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98 | 98 | | |
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99 | 99 | | (7) THE TRANSPORTATION FACILITIES OVERAGE ACCOUNT 1 |
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100 | 100 | | REVENUES ALLOCATED U NDER § 3–216(D)(6) OF THIS SUBTITLE . 2 |
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101 | 101 | | |
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102 | 102 | | 3–216. 3 |
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103 | 103 | | |
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104 | 104 | | (a) There is a Transportation Trust Fund for the Department. 4 |
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105 | 105 | | |
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106 | 106 | | (c) (2) (i) The Gasoline and Motor Vehicle Revenue Account, the Driver 5 |
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107 | 107 | | Education Account, the Motorcycle Safety Program Account, [and] the Transportation 6 |
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108 | 108 | | Network Company Impact Fee Account , AND THE TRANSPORTATION FACILITIES 7 |
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109 | 109 | | OVERAGE ACCOUNT shall be maintained in the Transportation Trust Fund. 8 |
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110 | 110 | | |
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111 | 111 | | (d) (6) THE DEPARTMENT SHALL ALLO CATE THE FUNDS IN TH E 9 |
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112 | 112 | | TRANSPORTATION FACILITIES OVERAGE ACCOUNT FOR THE FOLLO WING 10 |
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113 | 113 | | PURPOSES, IN THE MANNER THE DEPARTMENT DETERMINES APPROPRIATE : 11 |
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114 | 114 | | |
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115 | 115 | | (I) THE CONSTRUCTION AND MAINTENANCE OF STATE 12 |
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116 | 116 | | HIGHWAYS THAT FEED V EHICULAR TRAFFIC TO A MARYLAND TRANSPORTATION 13 |
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117 | 117 | | AUTHORITY TRANSPORTAT ION FACILITY; AND 14 |
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118 | 118 | | |
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119 | 119 | | (II) STATE HIGHWAY OR TRAN SIT CONSTRUCTION OR 15 |
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120 | 120 | | MAINTENANCE PROJECTS THAT: 16 |
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121 | 121 | | |
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122 | 122 | | 1. RELIEVE TRAFFIC CONGE STION AT A MARYLAND 17 |
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123 | 123 | | TRANSPORTATION AUTHORITY TRANSPORTATION FACIL ITY BY PROVIDING 18 |
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124 | 124 | | ALTERNATIVE TRANSPOR TATION OPTIONS FOR C OMMUTERS AND CARGO ; AND 19 |
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125 | 125 | | |
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126 | 126 | | 2. ARE LOCATED IN THE GE NERAL VICINITY OF A 20 |
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127 | 127 | | MARYLAND TRANSPORTATION AUTHORITY TRANSPORTAT ION FACILITY. 21 |
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128 | 128 | | |
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129 | 129 | | 4–312. 22 |
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130 | 130 | | |
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131 | 131 | | (a) (2) As to all or any part of any transportation facilities project, the 23 |
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132 | 132 | | Authority may: 24 |
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133 | 133 | | |
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134 | 134 | | (i) Fix, revise, charge, and collect rentals, rates, fees, tolls, and other 25 |
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135 | 135 | | charges and revenues for its use or for its services; and 26 |
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136 | 136 | | |
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137 | 137 | | (ii) Contract with any person who desires its use for any purpose and 27 |
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138 | 138 | | fix the terms, conditions, rentals, rates, fees, tolls, or other charges or revenues for this use. 28 |
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139 | 139 | | |
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140 | 140 | | (b) The rentals, rates, fees, tolls, and other charges and revenues designated as 29 |
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141 | 141 | | security for any bonds issued under this subtitle shall be fixed and adjusted from time to 30 |
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142 | 142 | | time, either with respect to a particular transportation facilities project or in respect of the 31 |
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143 | 143 | | aggregate of the charges and revenues from other transportation facilities projects under 32 4 HOUSE BILL 1068 |
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144 | 144 | | |
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145 | 145 | | |
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146 | 146 | | the control of the Authority, as may be specified by law or in any applicable resolution or 1 |
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147 | 147 | | trust agreement, so as to provide funds that, together with any other available revenues, 2 |
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148 | 148 | | are sufficient as long as the bonds are outstanding and unpaid to: 3 |
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149 | 149 | | |
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150 | 150 | | (1) Pay the costs of maintaining, repairing, and operating the 4 |
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151 | 151 | | transportation facilities project or projects financed in whole or in part by one or more series 5 |
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152 | 152 | | of outstanding and unpaid bonds, to the extent that payment is not otherwise provided; 6 |
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153 | 153 | | |
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154 | 154 | | (2) Pay the principal of and the interest on these bonds as they become due 7 |
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155 | 155 | | and payable; 8 |
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156 | 156 | | |
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157 | 157 | | (3) Create reasonable reserves that are anticipated will be needed for these 9 |
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158 | 158 | | purposes; and 10 |
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159 | 159 | | |
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160 | 160 | | (4) Provide funds for paying the cost of replacements, renewals, and 11 |
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161 | 161 | | improvements. 12 |
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162 | 162 | | |
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163 | 163 | | (B–1) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HAVE THE 13 |
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164 | 164 | | MEANINGS INDICATED . 14 |
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165 | 165 | | |
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166 | 166 | | (II) “NEAR OPTIMAL TOLL RAT E” MEANS A TOLL RATE TH AT 15 |
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167 | 167 | | PROVIDES AT LEAST 95% OF THE MAXIMUM REVEN UE POSSIBLE BASED ON A 16 |
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168 | 168 | | TRANSPORTATION FACIL ITIES PROJECT’S OPTIMAL TOLL RATE . 17 |
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169 | 169 | | |
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170 | 170 | | (III) “OPTIMAL TOLL RATE ” MEANS A TOLL RATE FOR A 18 |
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171 | 171 | | TRANSPORTATION FACIL ITIES PROJECT THAT M AXIMIZES REVENUE , AS 19 |
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172 | 172 | | DETERMINED BY THE AUTHORITY. 20 |
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173 | 173 | | |
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174 | 174 | | (2) THERE IS A TRANSPORTATION FACILITIES OVERAGE ACCOUNT 21 |
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175 | 175 | | IN THE TRANSPORTATION TRUST FUND. 22 |
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176 | 176 | | |
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177 | 177 | | (3) THE AUTHORITY SHALL : 23 |
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178 | 178 | | |
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179 | 179 | | (I) FIX, REVISE, CHARGE, AND COLLECT FEES , TOLLS, AND 24 |
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180 | 180 | | OTHER CHARGES AT THE NEAR OPTIMAL TOLL RA TE; AND 25 |
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181 | 181 | | |
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182 | 182 | | (II) DISTRIBUTE REVENUE CO LLECTED ABOVE THE AM OUNTS 26 |
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183 | 183 | | REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION TO T HE TRANSPORTATION 27 |
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184 | 184 | | FACILITIES OVERAGE ACCOUNT IN THE TRANSPORTATION TRUST FUND. 28 |
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185 | 185 | | |
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186 | 186 | | (4) (I) TO DETERMINE THE OPTI MAL TOLL RATE , THE AUTHORITY 29 |
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187 | 187 | | SHALL CONSIDER : 30 |
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188 | 188 | | HOUSE BILL 1068 5 |
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189 | 189 | | |
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190 | 190 | | |
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191 | 191 | | 1. MARKET FORCES , INCLUDING THE TYPES OF TRAFFIC 1 |
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192 | 192 | | THAT USE A PARTICULA R TRANSPORTATION FAC ILITY, THE ELASTICITY OF DE MAND, 2 |
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193 | 193 | | AND THE AVAILABILITY OF ALTERNATE ROUTE S; AND 3 |
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194 | 194 | | |
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195 | 195 | | 2. ASSESSING VARYING TOL L RATES BASED ON THE 4 |
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196 | 196 | | TIME OF DAY, THE TIME OF YEAR , AND ANY ANTICIPATED WEEKEND AND HOLIDAY 5 |
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197 | 197 | | TRAVEL. 6 |
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198 | 198 | | |
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199 | 199 | | (II) THE AUTHORITY SHALL CONSI DER: 7 |
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200 | 200 | | |
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201 | 201 | | 1. OFFERING DISCOUNT RAT ES FOR SENIORS , DAILY 8 |
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202 | 202 | | COMMUTERS , LOW–INCOME STATE RESIDENTS, MARYLAND E–ZPASS HOLDERS , 9 |
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203 | 203 | | AND STATE RESIDENTS WHO L IVE IN THE VICINITY OF THE TRANSPORTATIO N 10 |
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204 | 204 | | FACILITY; AND 11 |
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205 | 205 | | |
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206 | 206 | | 2. THE DISCOUNT RATES OF FERED IN DETERMINING 12 |
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207 | 207 | | THE NEAR OPTIMAL TOL L RATE. 13 |
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208 | 208 | | |
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209 | 209 | | (c) (1) Except as otherwise provided in this subsection, the rentals, rates, fees, 14 |
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210 | 210 | | tolls, and other charges and revenues are not subject to supervision or regulation by any 15 |
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211 | 211 | | instrumentality, agency, or unit of this State or any of its political subdivisions. 16 |
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212 | 212 | | |
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213 | 213 | | (2) This subtitle does not permit the exercise of any power or the 17 |
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214 | 214 | | undertaking of any activity that would conflict with the provisions and limitations of the 18 |
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215 | 215 | | federal Urban Mass Transportation Act of 1964. 19 |
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216 | 216 | | |
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217 | 217 | | (3) Tolls for the use of the bridge carrying the John F. Kennedy Memorial 20 |
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218 | 218 | | Highway over the Susquehanna River may not be less than the comparable tolls charged 21 |
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219 | 219 | | for the use of the Susquehanna River Bridge. 22 |
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220 | 220 | | |
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221 | 221 | | (4) Prior to fixing or revising tolls on any part of any transportation 23 |
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222 | 222 | | facilities project, the Authority shall provide, in accordance with § 2–1257 of the State 24 |
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223 | 223 | | Government Article, to the Senate Budget and Taxation Committee, Senate Finance 25 |
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224 | 224 | | Committee, House Appropriations Committee, and House Ways and Means Committee 26 |
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225 | 225 | | information on the proposed toll charges, including: 27 |
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226 | 226 | | |
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227 | 227 | | (i) The annual revenues generated by the toll charges; 28 |
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228 | 228 | | |
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229 | 229 | | (ii) The proposed use of the revenues; and 29 |
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230 | 230 | | |
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231 | 231 | | (iii) The proposed commuter discount rates. 30 |
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232 | 232 | | |
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233 | 233 | | (5) THE DEPARTMENT MAY USE AN Y REVENUE DISTRIBUTE D TO THE 31 |
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234 | 234 | | TRANSPORTATION FACILITIES OVERAGE ACCOUNT IN THE TRANSPORTATION 32 6 HOUSE BILL 1068 |
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235 | 235 | | |
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236 | 236 | | |
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237 | 237 | | TRUST FUND UNDER SUBSECTION (B–1) OF THIS SECTION AS A UTHORIZED UNDER § 1 |
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238 | 238 | | 3–216(D)(6) OF THIS ARTICLE. 2 |
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239 | 239 | | |
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240 | 240 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3 |
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241 | 241 | | October 1, 2025. 4 |
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