EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1068*
HOUSE BILL 1068
R2 5lr3225
HB 1070/24 – ENT & APP
By: Delegates J. Long and Stewart
Introduced and read first time: February 5, 2025
Assigned to: Environment and Transportation and Appropriations
A BILL ENTITLED
AN ACT concerning 1
Maryland Transportation Authority – Tolls – Collection and Use 2
(Maryland Toll Rate Reform Act of 2025) 3
FOR the purpose of establishing the Transportation Facilities Overage Account in the 4
Transportation Trust Fund; requiring the Maryland Transportation Authority to fix, 5
revise, charge, and collect fees, tolls, and other charges for the use of transportation 6
facilities under its jurisdiction to maximize revenues above certain amounts and to 7
distribute the additional revenues to the Transportation Facilities Overage Account 8
for certain purposes; establishing certain standards under which the Authority is 9
required to set certain toll rates; and generally relating to the collection and use of 10
revenue by the Maryland Transportation Authority. 11
BY repealing and reenacting, without amendments, 12
Article – Transportation 13
Section 3–215(a), 3–216(a), and 4–312(a)(2) and (b) 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Transportation 18
Section 3–215(b), 3–216(c)(2)(i), and 4–312(c) 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2024 Supplement) 21
BY adding to 22
Article – Transportation 23
Section 3–216(d)(6) and 4–312(b–1) 24
Annotated Code of Maryland 25
(2020 Replacement Volume and 2024 Supplement) 26
2 HOUSE BILL 1068
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Transportation 3
3–215. 4
(a) (1) For the purpose of paying the principal of and interest on consolidated 5
transportation bonds as they become due and payable, there is hereby levied and imposed 6
an annual tax that consists of the taxes specified in this section and, to the extent necessary 7
and except as otherwise provided in this subsection, that shall be used and applied 8
exclusively for that purpose. 9
(2) The required use and application of the tax under paragraph (1) of this 10
subsection is subject only to the prior use and application of one or all or any combination 11
of the taxes specified in this section to meet the debt service on all of the following bonds 12
while they are outstanding and unpaid and to the payment of which any part of those taxes 13
has been pledged: 14
(i) Bonds of prior issues; and 15
(ii) Bonds of any series of county transportation bonds issued under 16
Subtitle 3 of this title. 17
(b) The tax levied and imposed by this section consists of that part of the following 18
taxes that are retained to the credit of the Department after distributions to the political 19
subdivisions: 20
(1) The motor fuel tax revenue distributed under §§ 2–1103(2), 2–1103(3), 21
and 2–1104(a)(3) of the Tax – General Article; 22
(2) The motor fuel tax revenue attributable to the sales and use tax 23
equivalent rate imposed under § 9–306 of the Tax – General Article and distributed under 24
§ 2–1103(4) of the Tax – General Article; 25
(3) The income tax revenue distributed under § 2–614 of the Tax – General 26
Article; 27
(4) The excise tax imposed on vehicles by Part II of Title 13, Subtitle 8 of 28
this article; 29
(5) The sales and use tax revenues distributed under § 2–1302.1 of the Tax 30
– General Article; [and] 31
(6) The transportation network company impact fee revenues allocated 32
under § 3–216(d)(5)(i)1 of this subtitle; AND 33
HOUSE BILL 1068 3
(7) THE TRANSPORTATION FACILITIES OVERAGE ACCOUNT 1
REVENUES ALLOCATED U NDER § 3–216(D)(6) OF THIS SUBTITLE . 2
3–216. 3
(a) There is a Transportation Trust Fund for the Department. 4
(c) (2) (i) The Gasoline and Motor Vehicle Revenue Account, the Driver 5
Education Account, the Motorcycle Safety Program Account, [and] the Transportation 6
Network Company Impact Fee Account , AND THE TRANSPORTATION FACILITIES 7
OVERAGE ACCOUNT shall be maintained in the Transportation Trust Fund. 8
(d) (6) THE DEPARTMENT SHALL ALLO CATE THE FUNDS IN TH E 9
TRANSPORTATION FACILITIES OVERAGE ACCOUNT FOR THE FOLLO WING 10
PURPOSES, IN THE MANNER THE DEPARTMENT DETERMINES APPROPRIATE : 11
(I) THE CONSTRUCTION AND MAINTENANCE OF STATE 12
HIGHWAYS THAT FEED V EHICULAR TRAFFIC TO A MARYLAND TRANSPORTATION 13
AUTHORITY TRANSPORTAT ION FACILITY; AND 14
(II) STATE HIGHWAY OR TRAN SIT CONSTRUCTION OR 15
MAINTENANCE PROJECTS THAT: 16
1. RELIEVE TRAFFIC CONGE STION AT A MARYLAND 17
TRANSPORTATION AUTHORITY TRANSPORTATION FACIL ITY BY PROVIDING 18
ALTERNATIVE TRANSPOR TATION OPTIONS FOR C OMMUTERS AND CARGO ; AND 19
2. ARE LOCATED IN THE GE NERAL VICINITY OF A 20
MARYLAND TRANSPORTATION AUTHORITY TRANSPORTAT ION FACILITY. 21
4–312. 22
(a) (2) As to all or any part of any transportation facilities project, the 23
Authority may: 24
(i) Fix, revise, charge, and collect rentals, rates, fees, tolls, and other 25
charges and revenues for its use or for its services; and 26
(ii) Contract with any person who desires its use for any purpose and 27
fix the terms, conditions, rentals, rates, fees, tolls, or other charges or revenues for this use. 28
(b) The rentals, rates, fees, tolls, and other charges and revenues designated as 29
security for any bonds issued under this subtitle shall be fixed and adjusted from time to 30
time, either with respect to a particular transportation facilities project or in respect of the 31
aggregate of the charges and revenues from other transportation facilities projects under 32 4 HOUSE BILL 1068
the control of the Authority, as may be specified by law or in any applicable resolution or 1
trust agreement, so as to provide funds that, together with any other available revenues, 2
are sufficient as long as the bonds are outstanding and unpaid to: 3
(1) Pay the costs of maintaining, repairing, and operating the 4
transportation facilities project or projects financed in whole or in part by one or more series 5
of outstanding and unpaid bonds, to the extent that payment is not otherwise provided; 6
(2) Pay the principal of and the interest on these bonds as they become due 7
and payable; 8
(3) Create reasonable reserves that are anticipated will be needed for these 9
purposes; and 10
(4) Provide funds for paying the cost of replacements, renewals, and 11
improvements. 12
(B–1) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HAVE THE 13
MEANINGS INDICATED . 14
(II) “NEAR OPTIMAL TOLL RAT E” MEANS A TOLL RATE TH AT 15
PROVIDES AT LEAST 95% OF THE MAXIMUM REVEN UE POSSIBLE BASED ON A 16
TRANSPORTATION FACIL ITIES PROJECT’S OPTIMAL TOLL RATE . 17
(III) “OPTIMAL TOLL RATE ” MEANS A TOLL RATE FOR A 18
TRANSPORTATION FACIL ITIES PROJECT THAT M AXIMIZES REVENUE , AS 19
DETERMINED BY THE AUTHORITY. 20
(2) THERE IS A TRANSPORTATION FACILITIES OVERAGE ACCOUNT 21
IN THE TRANSPORTATION TRUST FUND. 22
(3) THE AUTHORITY SHALL : 23
(I) FIX, REVISE, CHARGE, AND COLLECT FEES , TOLLS, AND 24
OTHER CHARGES AT THE NEAR OPTIMAL TOLL RA TE; AND 25
(II) DISTRIBUTE REVENUE CO LLECTED ABOVE THE AM OUNTS 26
REQUIRED UNDER SUBSE CTION (B) OF THIS SECTION TO T HE TRANSPORTATION 27
FACILITIES OVERAGE ACCOUNT IN THE TRANSPORTATION TRUST FUND. 28
(4) (I) TO DETERMINE THE OPTI MAL TOLL RATE , THE AUTHORITY 29
SHALL CONSIDER : 30
HOUSE BILL 1068 5
1. MARKET FORCES , INCLUDING THE TYPES OF TRAFFIC 1
THAT USE A PARTICULA R TRANSPORTATION FAC ILITY, THE ELASTICITY OF DE MAND, 2
AND THE AVAILABILITY OF ALTERNATE ROUTE S; AND 3
2. ASSESSING VARYING TOL L RATES BASED ON THE 4
TIME OF DAY, THE TIME OF YEAR , AND ANY ANTICIPATED WEEKEND AND HOLIDAY 5
TRAVEL. 6
(II) THE AUTHORITY SHALL CONSI DER: 7
1. OFFERING DISCOUNT RAT ES FOR SENIORS , DAILY 8
COMMUTERS , LOW–INCOME STATE RESIDENTS, MARYLAND E–ZPASS HOLDERS , 9
AND STATE RESIDENTS WHO L IVE IN THE VICINITY OF THE TRANSPORTATIO N 10
FACILITY; AND 11
2. THE DISCOUNT RATES OF FERED IN DETERMINING 12
THE NEAR OPTIMAL TOL L RATE. 13
(c) (1) Except as otherwise provided in this subsection, the rentals, rates, fees, 14
tolls, and other charges and revenues are not subject to supervision or regulation by any 15
instrumentality, agency, or unit of this State or any of its political subdivisions. 16
(2) This subtitle does not permit the exercise of any power or the 17
undertaking of any activity that would conflict with the provisions and limitations of the 18
federal Urban Mass Transportation Act of 1964. 19
(3) Tolls for the use of the bridge carrying the John F. Kennedy Memorial 20
Highway over the Susquehanna River may not be less than the comparable tolls charged 21
for the use of the Susquehanna River Bridge. 22
(4) Prior to fixing or revising tolls on any part of any transportation 23
facilities project, the Authority shall provide, in accordance with § 2–1257 of the State 24
Government Article, to the Senate Budget and Taxation Committee, Senate Finance 25
Committee, House Appropriations Committee, and House Ways and Means Committee 26
information on the proposed toll charges, including: 27
(i) The annual revenues generated by the toll charges; 28
(ii) The proposed use of the revenues; and 29
(iii) The proposed commuter discount rates. 30
(5) THE DEPARTMENT MAY USE AN Y REVENUE DISTRIBUTE D TO THE 31
TRANSPORTATION FACILITIES OVERAGE ACCOUNT IN THE TRANSPORTATION 32 6 HOUSE BILL 1068
TRUST FUND UNDER SUBSECTION (B–1) OF THIS SECTION AS A UTHORIZED UNDER § 1
3–216(D)(6) OF THIS ARTICLE. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
October 1, 2025. 4