EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0020* SENATE BILL 20 R2, B1 5lr1622 (PRE–FILED) CF 5lr1757 By: Senator McCray Requested: November 1, 2024 Introduced and read first time: January 8, 2025 Assigned to: Budget and Taxation A BILL ENTITLED AN ACT concerning 1 Locally Operated Transit Systems – Mandatory Funding – Inflation Adjustment 2 (Local Transit Sustainability Act) 3 FOR the purpose of requiring that the amount of the appropriation that the Governor is 4 required to include in the annual budget bill for the Locally Operated Transit System 5 Grant Program be adjusted for future fiscal years based on growth in the Consumer 6 Price Index for All Urban Consumers; and generally relating to the Locally Operated 7 Transit System Grant Program. 8 BY repealing and reenacting, without amendments, 9 Article – Transportation 10 Section 4–322(a)(1) 11 Annotated Code of Maryland 12 (2020 Replacement Volume and 2024 Supplement) 13 BY repealing and reenacting, with amendments, 14 Article – Transportation 15 Section 4–322(c) 16 Annotated Code of Maryland 17 (2020 Replacement Volume and 2024 Supplement) 18 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19 That the Laws of Maryland read as follows: 20 Article – Transportation 21 4–322. 22 (a) (1) There is a Locally Operated Transit System Grant Program. 23 2 SENATE BILL 20 (c) (1) IN THIS SUBSECTION , “CONSUMER PRICE INDEX FOR ALL URBAN 1 CONSUMERS” MEANS THE INDEX PUBL ISHED MONTHLY BY THE BUREAU OF LABOR 2 STATISTICS OF THE U.S. DEPARTMENT OF LABOR THAT IS THE UNITED STATES 3 CITY AVERAGE OF ALL ITEMS IN A BASKET OF CONSU MER GOODS AND SERVIC ES. 4 (2) THE PERCENTAGE GROWTH IN THE CONSUMER PRICE INDEX FOR 5 ALL URBAN CONSUMERS SHALL BE DETERMINED BY COMPARING THE AVE RAGE OF 6 THE INDEX FOR THE 12 MONTHS ENDING ON THE PRECEDING JUNE 30 TO THE 7 AVERAGE OF THE INDEX FOR THE PRIOR 12 MONTHS 8 (3) For fiscal year 2026 and each fiscal year thereafter, the Governor shall 9 include in the annual budget bill an appropriation from the Transportation Trust Fund of 10 at least $80,533,314 to the program for statewide program operations. 11 (4) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER , 12 THE APPROPRIATION RE QUIRED UNDER PARAGRA PH (3) OF THIS SUBSECTION 13 SHALL BE INCREASED B Y THE AMOUNT THAT EQUA LS THE PRODUC T OF 14 MULTIPLYING : 15 (I) THE AMOUNT REQUIRED UNDE R THIS SUBSECTION TO BE 16 INCLUDED IN THE ANNUAL BUDGET BILL FOR THE PRIOR F ISCAL YEAR FOR THE 17 PROGRAM; AND 18 (II) THE LESSER OF: 19 1. THE PERCENTAGE GROWTH IN THE CONSUMER 20 PRICE INDEX FOR ALL URBAN CONSUMERS; OR 21 2. 5%. 22 (5) IF THERE IS A DECLINE OR NO GROWTH IN THE CONSUMER PRICE 23 INDEX FOR ALL URBAN CONSUMERS, THE APPROPRIATION REQUIR ED UNDER THIS 24 SUBSECTION SHALL BE EQUAL TO THE AMOUNT OF THE APPROPRIATION FOR THE 25 PRIOR FISCAL YEAR . 26 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27 1, 2025. 28