EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0467*
HOUSE BILL 467
R2, B1 5lr1734
CF SB 384
By: Delegates Korman, J. Lewis, Palakovich Carr, and Williams
Introduced and read first time: January 20, 2025
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Metro Funding Modification Act of 2025 2
FOR the purpose of altering the calculation of the amount that the Governor is required to 3
include in the annual State budget each year to provide grants to the Washington 4
Suburban Transit District to pay the capital costs of the Washington Metropolitan 5
Area Transit Authority; making this Act contingent on enactment of certain 6
legislation by the Commonwealth of Virginia and the District of Columbia; and 7
generally relating to funding for the Washington Metropolitan Area Transit 8
Authority. 9
BY repealing and reenacting, with amendments, 10
Article – Transportation 11
Section 10–205(f) and (g) 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2024 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Transportation 17
10–205. 18
(f) (1) Except as provided in paragraph (2) of this subsection, the Governor 19
shall include an appropriation in the annual budget of at least the amount specified in 20
paragraph (4) of this subsection for the sole purpose of providing grants to the Washington 21
Suburban Transit District to pay the capital costs of the Washington Metropolitan Area 22
Transit Authority. 23
(2) (i) The Governor is not required to make the appropriation under 24
paragraph (1) of this subsection in a fiscal year unless the Department certifies to the 25 2 HOUSE BILL 467
Governor in writing before the beginning of the immediately preceding fiscal year that the 1
Washington Metropolitan Area Transit Authority has submitted to the Department: 2
1. Performance and condition assessments and reports 3
regarding: 4
A. The safety and reliability of rapid heavy rail and bus 5
systems; 6
B. The financial performance of the Washington 7
Metropolitan Area Transit Authority as it relates to rail and bus operations, including fare 8
box recovery, service per rider, and cost per service hour; 9
C. The monthly ridership of rail and bus systems broken 10
down by Metrorail station, Metrorail line, bus route, and bus line; 11
D. Strategies to reduce costs and improve the Washington 12
Metropolitan Area Transit Authority’s operational efficiency; and 13
E. The comparison of annual capital investments and 14
approved budgets; and 15
2. The Washington Metropolitan Area Transit Authority’s: 16
A. Annual budget; 17
B. Annual independent financial audit; 18
C. Annual National Transit Database profile; and 19
D. Single audit reports issued in accordance with the 20
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for 21
Federal Awards under 2 C.F.R. Part 200. 22
(ii) If the Commonwealth of Virginia or the District of Columbia 23
reduce the amount of dedicated capital funding for the Washington Metropolitan Area 24
Transit Authority, the Governor may reduce the appropriation under paragraph (1) of this 25
subsection by a proportional amount. 26
(iii) 1. The Governor shall withhold 35% of the appropriation 27
under paragraph (1) of this subsection if: 28
A. The Washington Metropolitan Area Transit Authority has 29
received a modified audit opinion as a result of an annual independent audit conducted in 30
accordance with Article XVI, Section 70 of the Washington Metropolitan Area Transit 31
Authority Compact under § 10–204 of this subtitle; and 32
HOUSE BILL 467 3
B. The Department has not certified to the Governor in 1
writing before the beginning of the immediately preceding fiscal year that the Washington 2
Metropolitan Area Transit Authority has submitted in writing to the board of directors of 3
the Washington Metropolitan Area Transit Authority and the Maryland General Assembly 4
a satisfactory corrective plan that addresses the reasons for the modified audit opinion. 5
2. The Governor shall release the portion of the 6
appropriation withheld under subsubparagraph 1 of this subparagraph if the Washington 7
Metropolitan Area Transit Authority submits in writing to the board of directors of the 8
Washington Metropolitan Area Transit Authority and, in accordance with § 2–1257 of the 9
State Government Article, the Maryland General Assembly a satisfactory corrective action 10
plan that addresses the reasons for the modified audit opinion. 11
(3) The Governor shall make the appropriation under paragraph (1) of this 12
subsection from the Transportation Trust Fund. 13
(4) [(i)] For the first fiscal year in which the mandated appropriation 14
under this subsection applies, the appropriation under paragraph (1) of this subsection 15
shall equal at least the amount appropriated in the fiscal year 2019 State budget as enacted 16
for the Washington Suburban Transit District to pay the capital costs of the Washington 17
Metropolitan Area Transit Authority. 18
[(ii) For each fiscal year after the first fiscal year in which the 19
mandated appropriation under this subsection applies, the appropriation under paragraph 20
(1) of this subsection shall be equal to the amount of the appropriation for the preceding 21
fiscal year increased by 3%.] 22
(g) (1) [The] SUBJECT TO PARAGRAPHS (4) AND (5) OF THIS 23
SUBSECTION, FOR EACH FISCAL YEAR , FROM THE REVENUES AV AILABLE FOR THE 24
STATE CAPITAL PROGRAM IN THE TRANSPORTATION TRUST FUND, THE Governor 25
shall include in the State budget an appropriation for the purposes specified under 26
paragraph (2) of this subsection [of $167,000,000 from the revenues available for the State 27
capital program in the Transportation Trust Fund] IN AN AMOUNT EQUAL TO THE 28
STATE’S PROPORTIONATE SHARE OF $500,000,000 CALCULATED USING THE 29
METRORAIL OPERATING SUBSIDY ALLOCATION FORMULA ADJUSTED AS REQUIRED 30
UNDER PARAGRAPHS (4) AND (5) OF THIS SUBSECTION . 31
(2) The Department shall provide an annual grant of at least 32
[$167,000,000] THE AMOUNT THAT THE GOVERNOR IS REQUIRED TO INCLUDE IN THE 33
STATE BUDGET UNDER PA RAGRAPH (1) OF THIS SUBSEC TION to the Washington 34
Suburban Transit District to be used only to pay the capital costs of the Washington 35
Metropolitan Area Transit Authority. 36
(3) The grant required under paragraph (2) of this subsection is in addition 37
to the appropriation required under subsection (f)(1) of this section. 38
4 HOUSE BILL 467
(4) THE BASE AMOUNT OF $500,000,000 USED TO CALCULATE TH E 1
APPROPRIATION REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION IS EQUAL 2
TO AN AMOUNT ADJUSTE D FOR INFLATION, AS MEASURED BY THE CONSUMER PRICE 3
INDEX (ALL URBAN CONSUMERS), BEGINNING WITH FISCA L YEAR 2019 AND 4
ENDING WITH THE FISC AL YEAR THAT SECTION 1 OF CHAPTER ___ (H.B. ___) 5
(5LR1734) OF THE ACTS OF THE GENERAL ASSEMBLY OF 2025 TAKES EFFECT. 6
(5) FOR EACH FISCAL YEAR , THE $500,000,000 BASE AMOUNT USED 7
TO CALCULATE THE APPROP RIATION REQUIRED UNDER PARAGRAPH (1) OF THIS 8
SUBSECTION, AS ADJUSTED FOR INFL ATION UNDER PARAGRAP H (4) OF THIS 9
SUBSECTION, SHALL BE INCREASED B Y 3%. 10
SECTION 2. AND BE IT FURTHER ENACTED, That: 11
(a) Section 1 of this Act is contingent on: 12
(1) the Commonwealth of Virginia enacting legislation that provides 13
dedicated capital funding for the Washington Metropolitan Area Transit Authority that 14
includes: 15
(i) 1. a calculation of each jurisdiction’s proportionate share of a 16
base amount of capital funding calculated using the Metrorail Operating Subsidy 17
Allocation Formula; and 18
2. a base amount of capital funding equal to $500,000,000 19
adjusted for inflation, as measured by the Consumer Price Index (All Urban Consumers), 20
beginning with fiscal year 2019 and ending the fiscal year that the legislation is enacted; 21
and 22
(ii) an annual 3% increase to the base amount of capital funding; and 23
(2) the District of Columbia enacting legislation that provides dedicated 24
capital funding for the Washington Metropolitan Area Transit Authority that includes: 25
(i) 1. a calculation of each jurisdiction’s proportionate share of a 26
base amount of capital funding calculated using the Metrorail Operating Subsidy 27
Allocation Formula; and 28
2. a base amount of capital funding equal to $500,000,000 29
adjusted for inflation, as measured by the Consumer Price Index (All Urban Consumers), 30
beginning with fiscal year 2019 and ending the fiscal year that the legislation is enacted; 31
and 32
(ii) an annual 3% increase to the base amount of capital funding. 33
HOUSE BILL 467 5
(b) The Department of Transportation shall notify the Department of Legislative 1
Services in writing within 5 days after both the Commonwealth of Virginia and the District 2
of Columbia have enacted legislation that meets the requirements of subsection (a) of this 3
section. 4
(c) Section 1 of this Act shall take effect on the date that the Department of 5
Legislative Services receives notice under subsection (b) of this section. 6
SECTION 3. AND BE IT FURTHER ENACTED, That, subject to Section 2 of this 7
Act, this Act shall take effect June 1, 2025. 8