EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
*sb0401*
SENATE BILL 401
R2 5lr2154
CF 5lr1146
By: Senator McCray
Introduced and read first time: January 20, 2025
Assigned to: Budget and Taxation and Finance
A BILL ENTITLED
AN ACT concerning 1
Transportation – Maryland Area Rail Commuter Rail Authority – Establishment 2
(MARC Rail Authority Act of 2025) 3
FOR the purpose of establishing the Maryland Area Rail Commuter (MARC) Rail Authority 4
and the powers and duties of the MARC Rail Authority, acting on behalf of the 5
Department of Transportation, with respect to the supervision, construction, 6
operation, maintenance, and repair of MARC railroad facilities projects; authorizing, 7
subject to certain limitations, the MARC Rail Authority to issue certain revenue 8
bonds to finance the cost of certain MARC railroad facilities projects; establishing 9
the MARC Rail Authority Fund; requiring certain funds and revenues to be 10
deposited in the Fund; and generally relating to the establishment of the Maryland 11
Area Rail Commuter (MARC) Rail Authority. 12
BY adding to 13
Article – Transportation 14
Section 7–1301 through 7–1333 to be under the new subtitle “Subtitle 13. Maryland 15
Area Rail Commuter (MARC) Rail Authority” 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
SUBTITLE 13. MARYLAND AREA RAIL COMMUTER (MARC) RAIL AUTHORITY. 22
7–1301. 23
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 24 2 SENATE BILL 401
INDICATED. 1
(B) “MARC” MEANS MARYLAND AREA RAIL COMMUTER RAIL SERVICE . 2
(C) “MARC RAILROAD FACILITIES PROJECT” INCLUDES: 3
(1) (I) THE BRUNSWICK, CAMDEN, OR PENN LINES OF THE 4
MARYLAND AREA RAIL COMMUTER (MARC) SERVICE; AND 5
(II) EXTENDING MARC SERVICE; AND 6
(2) ANY ADDITIONS, IMPROVEMENTS , OR ENLARGEMENTS TO A NY OF 7
THE PROJECTS LISTED UNDER ITEM (1) OF THIS SUBSECTION , WHENEVER 8
AUTHORIZED . 9
(D) “TRANSPORTATION AUTHORITY” MEANS THE MARYLAND 10
TRANSPORTATION AUTHORITY. 11
7–1302. 12
THERE IS A MARC RAIL AUTHORITY. 13
7–1303. 14
(A) (1) THE SECRETARY IS THE CHAI R OF THE MARC RAIL AUTHORITY. 15
(2) THE SECRETARY SHALL DESIG NATE AN EXECUTIVE DIRECTOR 16
OF THE MARC RAIL AUTHORITY. 17
(B) IN ADDITION TO THE CHAI R, THE MARC RAIL AUTHORITY CONSISTS 18
OF: 19
(1) THE FOLLOWING MEMBERS : 20
(I) ONE MEMBER WITH A BAC KGROUND IN RAIL TRAN SIT, 21
APPOINTED BY THE PRESIDENT OF THE SENATE; AND 22
(II) ONE MEMBER WITH A BAC KGROUND IN RAIL TRAN SIT, 23
APPOINTED B Y THE SPEAKER OF THE HOUSE; AND 24
(2) THE FOLLOWING NONVOTI NG MEMBERS : 25
(I) AS AN EX OFFICIO MEMB ER, THE EXECUTIVE DIRECTOR OF 26 SENATE BILL 401 3
THE MARC RAIL AUTHORITY; AND 1
(II) A MEMBER OF THE LABOR COMMUNITY THAT IS EM PLOYED 2
BY MARC, APPOINTED BY THE GOVERNOR IN CONSULTATION WITH TH E 3
COMMISSIONER OF LABOR AND INDUSTRY. 4
(C) (1) THE TERM OF AN APPOIN TED MEMBER IS 4 YEARS. 5
(2) AN APPOINTED MEMBER M AY NOT SERVE MORE TH AN THREE 6
CONSECUTIVE TERMS . 7
(3) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 8
A SUCCESSOR IS APPOINTED AND QUALIFIES. 9
(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 10
ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 11
QUALIFIES. 12
(D) AN APPOINTED MEMBER O F THE MARC RAIL AUTHORITY IS ENTITLED 13
TO: 14
(1) THE COMPENSATION PROVI DED IN THE STATE BUDGET ; AND 15
(2) REIMBURSEMENT FOR EXP ENSES UNDER THE STANDARD STATE 16
TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 17
(E) THE MARC RAIL AUTHORITY IS SUBJECT TO THE OPEN MEETINGS 18
ACT UNDER TITLE 3 OF THE GENERAL PROVISIONS ARTICLE. 19
7–1304. 20
(A) THE MARC RAIL AUTHORITY IS ENTITLED TO THE STAFF PROVIDE D IN 21
THE STATE BUDGET . 22
(B) THE SECRETARY SHALL PROVI DE THE MARC RAIL AUTHORITY WITH 23
THE PERSONNEL OF THE DEPARTMENT THAT THE SECRETARY CONSIDERS 24
NECESSARY FOR PERF ORMANCE OF THE MAINT ENANCE AND OTHER FUN CTIONS 25
REQUIRED OF THE MARC RAIL AUTHORITY TO MEET ITS OBLIGATIONS WITH 26
RESPECT TO ITS MARC RAILROAD FACILITIES PROJECTS. 27
7–1305. 28
(A) (1) ACTING ON BEHALF OF T HE DEPARTMENT , THE MARC RAIL 29 4 SENATE BILL 401
AUTHORITY HAS THOSE POWERS AND DUTIES RE LATING TO THE SUPERV ISION, 1
FINANCING, CONSTRUCTION , OPERATION, MAINTENANCE , AND REPAIR OF MARC 2
RAILROAD FACILITIES PROJECTS AS ARE GRAN TED TO IT BY THIS SU BTITLE. 3
(2) THE MARC RAIL AUTHORITY MAY : 4
(I) DELEGATE PROJECT OPER ATIONS, MAINTENANCE , AND 5
REPAIR TO THE ADMINISTRATION ; AND 6
(II) USE FARE REVENUE TO P ROVIDE THE ADMINISTRATION 7
WITH PAYMENTS FOR PR OJECT OPERATIONS , MAINTENANCE , AND REPAIR. 8
(B) THE MARC RAIL AUTHORITY HAS GENERAL SUPERVISION OF MARC 9
RAILROAD FACILITIES PROJECTS. 10
(C) THE MARC RAIL AUTHORITY SHALL FINAN CE, CONSTRUCT, OPERATE, 11
REPAIR, AND MAINTAIN IN GOOD ORDER THE MARC RAILROAD FACILITIES . 12
(D) THE MARC RAIL AUTHORITY SHALL , TO THE EXTENT PRACTI CABLE, 13
ADHERE TO THE TRANSI T PLANS PREPARED UND ER SUBTITLE 3 OF THIS TITLE. 14
7–1306. 15
(A) THE MARC RAIL AUTHORITY MAY ACQUIRE , HOLD, AND DISPOSE OF 16
PROPERTY IN THE EXER CISE OF ITS POWERS A ND PERFORMANCE OF IT S DUTIES. 17
(B) THE MARC RAIL AUTHORITY MAY MAKE AN Y CONTRACTS AND 18
AGREEMENTS NECESSARY OR INCIDENTAL TO THE EXERCISE OF ITS POWER S AND 19
PERFORMANCE OF ITS D UTIES. 20
(C) THE MARC RAIL AUTHORITY MAY APPLY F OR AND RECEIVE GRANT S 21
FROM ANY FEDERAL AGE NCY FOR THE PLANNING , CONSTRUCTION , OPERATION, OR 22
FINANCING OF ANY PAS SENGER RAIL OR TRANS IT PROJECT AND MAY R ECEIVE AID 23
OR CONTRIBUTIONS OF MONEY, PROPERTY, LABOR, OR OTHER THINGS OF V ALUE 24
FROM ANY SOURCE , TO BE HELD, USED, AND APPLIED FOR THE PURPOSES FOR 25
WHICH THE GRANTS , AID, AND CONTRIBUTIONS AR E MADE. 26
(D) THE MARC RAIL AUTHORITY MAY ADOPT R ULES AND REGULATIONS TO 27
CARRY OUT THE PROVISIO NS OF THIS SUBTITLE . 28
(E) THE MARC RAIL AUTHORITY MAY DO ANYT HING ELSE NECESSARY OR 29
CONVENIENT TO CARRY OUT THE POWERS GRANT ED IN THIS SUBTITLE . 30
SENATE BILL 401 5
7–1307. 1
SUBJECT TO TITLE 12 OF THE REAL PROPERTY ARTICLE AND CHAPTER 608 2
OF THE ACTS OF THE GENERAL ASSEMBLY OF 1976, THE MARC RAIL AUTHORITY 3
MAY CONDEMN PROPERTY FOR ANY MARC RAILROAD FACILITIES PROJECT. 4
7–1308. 5
THE MARC RAIL AUTHORITY MAY CONTRAC T WITH THE ADMINISTRATION 6
TO AUTHORIZE ADMINISTRATION POLICE OFFICERS TO EXERCISE THE POWERS 7
DESCRIBED UNDER § 7–207 OF THIS TITLE ON PRO PERTY OWNED , LEASED, OR 8
OPERATED BY OR UNDER THE CONTROL OF THE MARC RAIL AUTHORITY. 9
7–1309. 10
(A) ON OR BEFORE SEPTEMBER 1 EACH YEAR , THE MARC RAIL 11
AUTHORITY, IN COLLABORATION WIT H THE TRANSPORTATION AUTHORITY, SHALL 12
DEVELOP AND , SUBJECT TO APPROVAL OF THE TRANSPORTATION AUTHORITY, 13
ADOPT A 6–YEAR FINANCIAL FOREC AST FOR THE OPERATIO NS OF THE MARC RAIL 14
AUTHORITY. 15
(B) IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, 16
THE MARC RAIL AUTHORITY SHALL SUBMIT TO THE GENERAL ASSEMBLY: 17
(1) A DRAFT OF THE FINANCI AL FORECAST ON SUBMI SSION OF THE 18
BUDGET BILL TO THE P RESIDING OFFICERS OF THE GENERAL ASSEMBLY; AND 19
(2) THE FINANCIAL FORECAS T AS APPROVED BY THE MARC RAIL 20
AUTHORITY ON OR BEFOR E SEPTEMBER 1 EACH YEAR. 21
(C) THE FINANCIAL FORECAS T SHALL INCLUDE THE FOLLOWING 22
COMPONENTS : 23
(1) A SCHEDULE OF OPERATIN G EXPENSES; 24
(2) A SCHEDULE OF REVENUES , INCLUDING CONCESSION S INCOME, 25
INVESTMENT INCOME , OTHER INCOME , AND TRANSFERS FROM T HE DEPARTMENT ; 26
(3) A SCHEDULE OF PLANNED BOND ISSUANCES , INCLUDING A 27
DETAILED SUMMARY OF BONDS ISSUED TO FUND THE CAPITAL PROGRAM AND 28
BONDS ISSUED TO FUND CAPITALIZED INTEREST ; 29
(4) A SCHEDULE OF DEBT SER VICE IN EACH FISCAL YEAR FOR EACH 30 6 SENATE BILL 401
BOND ISSUANCE OF ALL DEBT ISSUED BY THE MARC RAIL AUTHORITY, INCLUDING 1
DEBT SERVICE ESTIMAT ES OF PLANNED BOND I SSUANCES; AND 2
(5) A SUMMARY SCHEDULE FOR THE MARC RAIL AUTHORITY THAT 3
INCLUDES: 4
(I) THE TOTAL CASH BALANC E; 5
(II) THE AMOUNT OF THE CAS H BALANCE THAT IS 6
ENCUMBERED ; 7
(III) THE ANNUAL CASH SURPL US OR DEFICIT; 8
(IV) REVENUES; 9
(V) TRANSFERS TO THE DEPARTMENT FROM THE MARC RAIL 10
AUTHORITY; 11
(VI) TRANSFERS TO THE MARC RAIL AUTHORITY FROM THE 12
DEPARTMENT ; 13
(VII) BOND SALES; 14
(VIII) EXPENDITURES FOR DEBT SERVICE; 15
(IX) OPERATING EXPENSES ; 16
(X) CAPITAL EXPENSES ; 17
(XI) MAINTENANCE AND OPERA TIONS EXPENSE RESERV E 18
ACCOUNTS; 19
(XII) FORECASTED BOND INTER EST RATES; 20
(XIII) TOTAL BONDS OUTSTANDI NG; AND 21
(XIV) FINANCIAL COVERAGE RA TIOS, INCLUDING THE RATIO OF 22
TOTAL CASH TO FARE R EVENUES, THE DEBT SERVICE COV ERAGE RATIO, AND THE 23
RATE COVENANT COMPLI ANCE RATIO. 24
(D) THE FINANCIAL FORECAS T SHALL INCLUDE , FOR EACH OF THE 25
COMPONENTS SPECIFIED IN SUBSECTION (C) OF THIS SECTION: 26
SENATE BILL 401 7
(1) ACTUAL INFORMATION FO R THE LAST FULL FISCAL YEAR; AND 1
(2) FORECASTS OF THE INFO RMATION FOR EACH OF THE 6 2
SUBSEQUENT FISCAL YE ARS, INCLUDING THE CURREN T FISCAL YEAR, THE FISCAL 3
YEAR FOR THE PROPOSE D BUDGET, AND THE NEXT 4 SUBSEQUENT FISCAL YE ARS. 4
7–1310. 5
(A) THE MARC RAIL AUTHORITY SHALL EMPLO Y A GENERAL COUNSEL 6
WHO SERVES AT THE PL EASURE OF THE SECRETARY. 7
(B) THE GENERAL COUNSEL I S ENTITLED TO THE CO MPENSATION 8
DETERMINED BY THE EXECUTIVE DIRECTOR OF THE MARC RAIL AUTHORITY. 9
7–1311. 10
(A) THE MARC RAIL AUTHORITY SHALL MA KE PUBLICLY AVAILABL E ON 11
ITS WEBSITE: 12
(1) EACH OPEN MEETING AGE NDA: 13
(I) AT LEAST 48 HOURS IN ADVANCE OF EACH MEETING ; OR 14
(II) IF THE MEETING IS BEI NG HELD DUE TO AN EM ERGENCY, A 15
NATURAL DISASTER , OR ANY OTHER UNANTIC IPATED SITUATION , AS FAR IN 16
ADVANCE OF THE MEETIN G AS PRACTICABLE ; 17
(2) MEETING MINUTES FROM THE PORTIONS OF A ME ETING THAT 18
WERE HELD IN OPEN SE SSION, NOT MORE THAN 2 BUSINESS DAYS AFTER THE 19
MINUTES ARE APPROVED ; 20
(3) LIVE VIDEO STREAMING OF EACH OPEN MEETING OF THE MARC 21
RAIL AUTHORITY THAT IS HEL D AT: 22
(I) THE HEADQUARTERS OF T HE MARC RAIL AUTHORITY; OR 23
(II) ANY OTHER LOCATION WH ERE THE MARC RAIL 24
AUTHORITY HAS HELD AT LEAST 10 MEETINGS DURING THE IMMEDIATELY 25
PRECEDING CALENDAR Y EAR; AND 26
(4) A COMPLETE AND UNEDITE D ARCHIVED VIDEO RECORDI NG OF 27
EACH OPEN MEETING FO R WHICH LIVE VIDEO S TREAMING WAS MADE AV AILABLE 28
UNDER ITEM (3) OF THIS SUBSECTION F OR A MINIMUM OF 5 YEARS AFTER THE DATE 29 8 SENATE BILL 401
OF THE MEETING . 1
(B) THE DEPARTMENT OF INFORMATION TECHNOLOGY SHALL PROV IDE TO 2
THE MARC RAIL AUTHORITY THE TECHNIC AL STAFF, SUPPORT, AND EQUIPMENT 3
NECESSARY TO LIVESTR EAM THE OPEN MEETING S OF THE MARC RAIL AUTHORITY. 4
7–1312. 5
(A) ON AN ANNUAL BASIS , THE DEPARTMENT SHALL ALLO CATE TO THE 6
MARC RAIL AUTHORITY THE REVENUE NEEDED TO SUPPORT TH E MARC 7
OPERATING AND CAPITA L BUDGETS. 8
(B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 9
MARC FARES AND ANY OTHER REVENUE FROM CHARGES IMPOSED FOR MARC 10
SERVICE MAY BE USED ONLY TO SUPPORT THE MARC RAIL AUTHORITY. 11
(2) TO THE EXTENT REQUIRE D UNDER FINANCING AGRE EMENTS 12
UNDER TITLE 4, SUBTITLE 3 OF THIS ARTICLE ENTE RED INTO ON OR BEFOR E 13
OCTOBER 1, 2025, MARC FARES AND ANY OTHER REVENUE FROM CHARGES 14
IMPOSED FOR MARC SERVICE SHALL CONTIN UE TO SUPPORT THOSE EXISTING 15
INSTRUMENTS AND OBLI GATIONS. 16
7–1313. 17
BY ONE OR MORE RESOLU TIONS, THE MARC RAIL AUTHORITY MAY : 18
(1) FINANCE THE COST OF MARC RAILROAD FACILITIES PROJECTS; 19
(2) BORROW MONEY FROM TIM E TO TIME FOR THAT P URPOSE; AND 20
(3) EVIDENCE THE BORROWIN G BY THE ISSUANCE AN D SALE OF 21
REVENUE BON DS, NOTES, OR OTHER EVIDENCES O F OBLIGATION ON THE TERMS, 22
CONDITIONS, AND LIMITATIONS CONT AINED IN THIS SUBTIT LE. 23
7–1314. 24
(A) EXCEPT AS PROVIDED IN § 7–1318(B) OF THIS SUBTITLE , WITHOUT 25
LIMITING THE POWER O F THE MARC RAIL AUTHORITY TO ISSUE AD DITIONAL 26
REVENUE BONDS UNDER THE PROVISIONS OF LA W THAT AUTHORIZE THE ISSUANCE 27
OF REVENUE BONDS OF PRIOR ISSUES, THE MARC RAIL AUTHORITY FROM TIME T O 28
TIME MAY ISSUE ITS R EVENUE BONDS TO FINA NCE THE COST OF ANY ONE OR MORE 29
OR COMBINATION OF MARC RAILROAD FACILITIES PROJECTS. 30
SENATE BILL 401 9
(B) AS TO REVENUE BONDS O F ANY ISSUE, THE MARC RAIL AUTHORITY 1
MAY DETERMINE : 2
(1) THE DATE OR DATES OF ISSUE; 3
(2) THE DATE OR DATES AND AMOUNT OR AMOUNTS OF MATURITY, 4
WHICH NEED NOT BE IN EQUAL PRINCIPAL AMOU NTS OR CONSECUTIVE A NNUAL 5
INSTALLMENTS, BUT A BOND MAY NOT B E ISSUED TO MATURE L ATER THAN 40 YEARS 6
AFTER THE DATE OF IT S ISSUE; 7
(3) THE RATE OR RATES OF INTEREST PAYABLE ON THE BONDS, OR 8
THE MANNER OF DETERM INING THE RATE OR RA TES OF INTEREST , AND THE DATE 9
OR DATES OF PAYMENT OF INTEREST; 10
(4) THE TENOR , FORM OR FORMS , DENOMINATION OR 11
DENOMINATIONS , MANNER OF EXECUTION , AND PLACE OR PLACES OF PAYMENT OF 12
THE PRINCIPAL OF AND INTEREST ON THE BOND S, WHICH MAY BE AT ANY BANK OR 13
TRUST COMPANY WITHIN OR OUTSIDE THE STATE; 14
(5) WHETHER T HE BONDS ARE TO BE I SSUED IN COUPON OR 15
REGISTERED FORM OR B OTH AND WHETHER PROV ISION IS TO BE MADE FOR THE 16
REGISTRATION OF THE PRINCIPAL ONLY OF CO UPON BONDS , FOR THE 17
RECONVERSION OF FULL Y REGISTERED BONDS I NTO COUPON FORM , AND FOR THE 18
REPLACEMENT OF BONDS THAT ARE MUTILATED , LOST, OR DESTROYED ; 19
(6) WHETHER ALL OR ANY PA RT OF THE BONDS ARE REDEEMABLE 20
BEFORE MATURITY AND , IF SO, THE TERMS , CONDITIONS, AND PRICES OF 21
REDEMPTION ; AND 22
(7) ANY OTHER MATTER RELA TING TO THE FORM , TERMS, 23
CONDITIONS, ISSUANCE, SALE, AND DELIVERY OF THE BONDS. 24
(C) FORTY–FIVE DAYS BEFORE EAC H ISSUANCE OF BONDS UNDER THIS 25
SUBTITLE, THE DEPARTMENT SHALL REPO RT THE PROPOSED ISSU ANCE TO THE 26
LEGISLATIVE POLICY COMMITTEE FOR REVIEW AND COMMENT . 27
7–1315. 28
(A) (1) REVENUE BONDS ISSUED UNDER THIS SUBTITLE SHALL BE 29
EXECUTED ON BEHALF O F THE MARC RAIL AUTHORITY BY THE MANU AL 30
SIGNATURE OF AT LEAS T ONE AUTHORIZED IND IVIDUAL. 31
(2) OTHER SIGNATURES ON T HE BONDS MAY BE EITH ER MANUAL OR 32 10 SENATE BILL 401
FACSIMILE. 1
(B) IF AN INDIVIDUAL WHOS E MANUAL OR FACSIMILE SIGNATURE APPEARS 2
ON ANY BOND OR COUPO N ISSUED UNDER THIS SUBTITLE CEASES TO S ERVE IN AN 3
AUTHORIZED CAPACITY BEFORE THE DELIVERY OF THE BOND , THE SIGNATURE 4
NEVERTHELESS IS AS V ALID AND SUFFICIENT FOR ALL PURPOSES AS IF THE 5
INDIVIDUAL HAD REMAI NED IN THAT CAPACITY UNT IL DELIVERY OF THE B OND. 6
7–1316. 7
NOTWITHSTANDING ANY O THER PROVISION OF LA W OR ANY RECITALS IN THE 8
INSTRUMENTS , THE REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF 9
OBLIGATION ISSUED UN DER THIS SUBTITLE AR E INVESTMENT SECURIT IES UNDER 10
THE LAWS OF THE STATE. 11
7–1317. 12
THE REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF OBLIGATION 13
ISSUED UNDER THIS SU BTITLE AND THEIR ISS UANCE AND SALE ARE E XEMPT FROM 14
THE PROVISIONS OF §§ 8–206 AND 8–208 OF THE STATE FINANCE AND 15
PROCUREMENT ARTICLE, AND THE MARC RAIL AUTHORITY MAY SELL TH EM AT 16
EITHER PUBLIC OR PRI VATE SALE IN THE MAN NER AND FOR THE PRIC E THAT IT 17
DETERMINES . 18
7–1318. 19
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, REVENUE 20
BONDS MAY BE ISSUED BY THE MARC RAIL AUTHORITY: 21
(1) WITHOUT OBTAINING THE CONS ENT OF ANY INSTRUMEN TALITY, 22
AGENCY, OR UNIT OF THE STATE; AND 23
(2) WITHOUT ANY PROCEEDIN GS OR THE HAPPENING OF ANY 24
CONDITIONS OR THINGS OTHER THAN THOSE SPE CIFICALLY REQUIRED B Y THIS 25
SUBTITLE. 26
(B) (1) (I) REVENUE BONDS SECURED BY FARE REVENUE MAY BE 27
ISSUED IN ANY AMOUNT . 28
(II) ON OR BEFORE APRIL 1, 2026, THE MARC RAIL 29
AUTHORITY SHALL SUBMI T, IN ACCORDANCE WITH § 2–1257 OF THE STATE 30
GOVERNMENT ARTICLE, A REPORT TO THE GENERAL ASSEMBLY THAT INCLUDE S: 31
SENATE BILL 401 11
1. A RECOMMENDATION ON TH E MAXIMUM AGGREGATE 1
AMOUNT OF REVENUE BO NDS THAT MAY BE OUTS TANDING AND UNPAID I N A FISCAL 2
YEAR; AND 3
2. WHETHER THE MAXIMUM A GGREGATE AMOUNT 4
DETERMINED UNDER ITE M 1 OF THIS SUBPARAGRAPH SHOULD BE ESTABLISHE D BY 5
LAW OR REGULATION . 6
(III) THE RECOMMENDATION ON TH E MAXIMUM AGGREGATE 7
AMOUNT OF REVENUE BO NDS THAT MAY BE OUTS TANDING AND UNPAID U NDER 8
SUBPARAGRAPH (II) OF THIS PARAGRAPH SH ALL BE REDUCED BY TH E AMOUNT OF: 9
1. ANY LOAN EXTENDED TO THE STATE UNDER THE 10
FEDERAL TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT; 11
AND 12
2. ANY LINE OF CREDIT EX TENDED TO THE STATE 13
UNDER THE FEDERAL TRANSPORTATION INFRASTRUCTURE FINANCE AND 14
INNOVATION ACT, TO THE EXTENT THE STATE DRAWS ON THE LI NE OF CREDIT. 15
(2) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECTION, WITHOUT 16
THE APPROVAL OF THE GENERAL ASSEMBLY, THE MARC RAIL AUTHORITY MAY 17
ISSUE BONDS TO REFIN ANCE ALL OR ANY PART OF THE COST OF A PAS SENGER RAIL 18
OR TRANSIT PROJECT F OR WHICH THE MARC RAIL AUTHORITY PREVIOUSLY 19
ISSUED BONDS AUTHORI ZED UNDER T HIS SUBTITLE. 20
7–1319. 21
(A) SUBJECT TO THE PROVIS IONS OF §§ 7–1318(B) AND 7–1332 OF THIS 22
SUBTITLE, IF BY REASON OF INCR EASED CONSTRUCTION C OSTS, ERROR IN 23
ESTIMATES, OR OTHERWISE , THE PROCEEDS OF THE REVENUE BONDS OF ANY ISSUE 24
ARE LESS THAN THE AM OUNT REQU IRED FOR THE PURPOSE FOR WHICH THE BONDS 25
ARE AUTHORIZED , ADDITIONAL REVENUE B ONDS MAY BE ISSUED I N A SIMILAR 26
MANNER TO PROVIDE TH E AMOUNT OF THE DEFI CIENCY. 27
(B) (1) THE ADDITIONAL BONDS SHALL BE DEEMED TO B E OF THE SAME 28
ISSUE AND SHALL BE E NTITLED TO PAY MENT FROM THE SAME F UND, WITHOUT 29
PREFERENCE OR PRIORI TY, AS THE BONDS FIRST I SSUED. 30
(2) IF THE PROCEEDS OF TH E ADDITIONAL BONDS E XCEED THE 31
AMOUNT REQUIRED , THE EXCESS SHALL BE DEPOSITED TO THE CRE DIT OF ANY 32
RESERVE FUND FOR THE BONDS OR, IF SO PROVIDED IN THE TRUST AGREEME NT 33
SECURING THE BONDS , MAY BE APPLIED TO TH E COST OF ANY ADDITI ONAL 34 12 SENATE BILL 401
PROJECT. 1
7–1320. 2
(A) THE MARC RAIL AUTHORITY FROM TIME T O TIME MAY ISSUE ITS 3
REVENUE REFUNDING BO NDS FOR: 4
(1) REFUNDING ANY BONDS I SSUED UNDER THIS SUB TITLE OR ANY 5
REVENUE BONDS OF PRI OR ISSUES, INCLUDING THE PAYMEN T OF ANY REDEMPTION 6
PREMIUM ON THE BONDS AND ANY INTEREST ACC RUED OR TO ACCRUE TO THE DATE 7
OF REDEMPTION OF THE BONDS; 8
(2) CONSTRUCTING IMPROVEM ENTS OR EXTENSIONS T O OR 9
ENLARGEMENTS OF ANY MARC RAILROAD FACILITIES PROJ ECT; AND 10
(3) PAYING ALL OR ANY PAR T OF THE COST OF ANY ADDITIONAL 11
MARC RAILROAD FACILITIES PROJECT. 12
(B) THE ISSUANCE OF REVEN UE REFUNDING BONDS , THE DETAILS OF 13
THEIR ISSUANCE , THE RIGHTS OF THEIR HOLDERS, AND THE RIGHTS , DUTIES, AND 14
OBLIGATIONS OF THE MARC RAIL AUTHORITY WITH RESPEC T TO THEM ARE 15
GOVERNED BY THE PROV ISIONS OF THIS SUBTI TLE RELATING TO REVE NUE BONDS, 16
INSOFAR AS THOSE PRO VISIONS MAY BE APPLI CABLE. 17
7–1321. 18
BEFORE THE PREPARATIO N OF DEFINITIVE BOND S, THE MARC RAIL 19
AUTHORITY MAY ISSUE I TS INTERIM CERTIFICA TES OR TEMPORARY BON DS, WITH 20
OR WITHOUT COUPONS , EXCHANGEABLE FOR DEF INITIVE BONDS WHEN T HE 21
DEFINITIVE BONDS HAV E BEEN EXECUTED AND ARE AVAILABLE FOR DE LIVERY. 22
7–1322. 23
(A) THE MARC RAIL AUTHORITY MAY ISSUE I TS BOND ANTICIPATION 24
NOTES, PAYABLE TO THE BEARE R OR REGISTERED HOLD ER OF THE NOTES , OUT OF 25
THE FIRST PROCEEDS O F THE NEXT SALE OF B ONDS ISSUED UNDER TH IS SUBTITLE. 26
(B) THE RESOLUTION AUTHOR IZING THE ISSUANCE O F BOND ANTICIPATION 27
NOTES MAY PROVIDE FO R THE ISSUANCE OF THESE NOTES IN SERIES, AS FUNDS ARE 28
REQUIRED, AND FOR THE RENEWAL OF THESE NOTES AT MA TURITY, WITH OR 29
WITHOUT RESALE . 30
(C) THE ISSUANCE OF BOND ANTICIPATION NOTES , THE DETAILS OF THEIR 31 SENATE BILL 401 13
ISSUANCE, THE RIGHTS OF THEIR HOLDERS, AND THE RIGHTS , DUTIES, AND 1
OBLIGATIONS OF THE MARC RAIL AUTHORITY WITH RESPEC T TO THEM ARE 2
GOVERNED BY THE PROV ISIONS OF THIS SUBTI TLE RELATING TO THE ISSUANCE OF 3
THE BONDS IN ANTICIP ATION OF THE SALE OF WHICH THE NOTES ARE ISSUED, 4
INSOFAR AS THOSE PRO VISIONS MAY BE APPLI CABLE. 5
7–1323. 6
(A) (1) REVENUE BONDS ISSUED UNDER THIS SUBTITLE MAY BE 7
SECURED BY A TRUST A GREEMENT BETWEEN THE MARC RAIL AUTHORITY AND A 8
CORPORATE TRUSTEE TH AT MAY BE ANY TRUST COMPANY OR BANK HAVI NG TRUST 9
POWERS WITHIN OR OUT SIDE THE STATE. 10
(2) THE TRUST AGREEMENT MAY PLEDGE OR ASSIGN ALL OR ANY 11
PART OF THE REVENUES OF THE MARC RAIL AUTHORITY OR OF ANY MARC 12
RAILROAD FACILITIES PROJECT, BUT MAY NOT MORTGAGE ANY PART OF ANY MARC 13
RAILROAD FACILITIES PROJECT. 14
(B) ANY TRUST AGREEMENT O R BOND AUTHORIZING R ESOLUTION MAY: 15
(1) CONTAIN ANY PROVISION S FOR THE PROTECTION AND 16
ENFORCEMENT OF THE R IGHTS AND REMEDIES O F BONDHOLDERS AS ARE 17
CONSIDERED REASONABL E AND PROPER , INCLUDING COVENANTS SETTING FORTH 18
THE DUTIES OF THE MARC RAIL AUTHORITY AS TO THE F INANCING OR 19
DEVELOPMENT OF ANY MARC RAILROAD FACILITIES PROJECT, THE EXTENSION , 20
ENLARGEMENT , IMPROVEMENT , MAINTENANCE , OPERATION, REPAIR, AND 21
INSURANCE OF THE PRO JECT, AND THE CUSTODY , SAFEGUARDING , AND 22
APPLICATION OF MONEY ; 23
(2) PROVIDE FOR THE EMPLO YMENT OF CONSULT ING ENGINEERS IN 24
CONNECTION WITH THE CONSTRUCTION OR OPER ATION OF ANY MARC RAILROAD 25
FACILITIES PROJECT ; 26
(3) SET FORTH THE RIGHTS AND REMEDIES OF THE BONDHOLDERS 27
AND OF THE TRUSTEE ; 28
(4) RESTRICT THE INDIVIDU AL RIGHT OF ACTION B Y BONDHOLDERS ; 29
AND 30
(5) CONTAIN ANY OTHER PRO VISIONS THAT THE MARC RAIL 31
AUTHORITY CONSIDERS R EASONABLE AND PROPER FOR THE SECURITY OF THE 32
BONDHOLDERS , INCLUDING: 33
14 SENATE BILL 401
(I) COVENANTS TO RESTRICT OR PROHIBIT THE 1
CONSTRUCTION OR OPER ATION OF COMPETING MARC RAILROAD FACILITIES ; AND 2
(II) COVENANTS RELATING TO THE ISSUANCE OF ADDI TIONAL 3
PARITY BONDS ON STAT ED CONDITIONS CONSIS TENT WITH THE REQUIR EMENTS OF 4
THIS SUBTITLE. 5
(C) ALL EXPENSES INCURRED IN CARRYING OUT THE TRUST AGREEMENT 6
MAY BE TREATED AS A PART OF THE COST OF THE OPER ATION OF THE MARC 7
RAILROAD FACILITIES PROJECT IN CONNECTIO N WITH WHICH THE BON DS HAVE 8
BEEN ISSUED. 9
(D) THE PROCEEDS OF THE S ALE OF BONDS SHALL B E PAID TO THE 10
TRUSTEE UNDER THE TR UST AGREEMENT SECURI NG THE BONDS AND SHA LL BE 11
DISBURSED IN THE MAN NER AND UN DER THE RESTRICTIONS , IF ANY, PROVIDED IN 12
THE TRUST AGREEMENT . 13
(E) ANY BANK OR TRUST COM PANY INCORPORATED UN DER THE LAWS OF 14
THE STATE THAT ACTS AS DE POSITARY OF THE PROC EEDS OF THE BONDS OR OF 15
REVENUES MAY FURNISH ANY INDEMNIFYING BON DS OR PLEDGE ANY SEC URITIES 16
THAT THE MARC RAIL AUTHORITY REQUIRES . 17
7–1324. 18
NOTWITHSTANDING ANY O THER PROVISION OF LA W, IF THE MARC RAIL 19
AUTHORITY IS OPERATIN G A MARC RAILROAD FACILITIES PROJECT, THE MARC 20
RAIL AUTHORITY SHALL FIX , REVISE, CHARGE, AND COLLECT RENTALS , RATES, 21
FEES, FARES, AND OTHER CHARGES FO R ITS USE OR FOR ITS SERVICES CONSISTENT 22
WITH THE PROVISIONS OF §§ 7–208, 7–505, AND 7–506 OF THIS TITLE AS THO SE 23
PROVISIONS APPLY TO THE ADMINISTRATION . 24
7–1325. 25
(A) (1) ALL RENTALS, RATES, FARES, FEES, AND OTHER CHARGE S AND 26
REVENUES DERIVED FRO M ANY MARC RAILROAD FACILITIES PROJECT SHALL BE 27
SET ASIDE IN A FUND KNOWN AS THE MARC RAIL AUTHORITY FUND, EXCEPT TO 28
THE EXTENT THAT THEY ARE PLEDGED UNDER AN APPLICABLE TRUST AGR EEMENT 29
TO SECURE EITHER : 30
(I) REVENUE BONDS ISSU ED UNDER THIS SUBTIT LE IF THE 31
TRUST AGREEMENT OR B OND AUTHORIZING RESO LUTION EXPRESSLY PRO VIDES 32
THAT THIS SECTION DO ES NOT APPLY TO THOS E BONDS; OR 33
SENATE BILL 401 15
(II) REVENUE BONDS OF PRIO R ISSUES. 1
(2) THE MARC RAIL AUTHORITY FUND CONSISTS OF : 2
(I) SUBJECT TO PARAGRAPH (1) OF THIS SUBSECTION , THE 3
RENTALS, RATES, FARES, FEES, AND OTHER CHARGES AN D REVENUES DERIVED 4
FROM ANY MARC RAILROAD FACILITIES PROJECT, EXCEPT TO THE EXTENT THAT 5
THEY ARE PLEDGED UND ER AN APPLICABLE TRU ST AGREEMENT ; AND 6
(II) MONEY APPROPRI ATED IN THE STATE BUDGET TO THE 7
MARC RAIL AUTHORITY FUND. 8
(3) MONEY DISTRIBUTED TO THE MARC RAIL AUTHORITY FUND 9
SHALL BE USED ONLY F OR THE MARC RAILROAD FACILITIES PROJECTS. 10
(4) THE MARC RAIL AUTHORITY FUND SHALL BE PLEDGED TO AND 11
CHARGED WITH THE P AYMENT OF: 12
(I) THE INTEREST ON BONDS ISSUED UNDER THIS SU BTITLE AS 13
IT FALLS DUE; 14
(II) THE PRINCIPAL OF THE BONDS AS IT FALLS DU E; 15
(III) THE NECESSARY CHARGES OF PAYING AGENTS FOR PAYING 16
PRINCIPAL AND INTERE ST; AND 17
(IV) THE REDEMPTION PRICE OR PURCHASE PRICE OF BONDS 18
RETIRED BY CALL OR P URCHASE AS PROVIDED IN THE BOND AUTHORIZ ING 19
RESOLUTION OR TRUST AGREEMENT . 20
(B) (1) THE PLEDGE IS VALID A ND BINDING FROM THE TIME IT IS MADE. 21
(2) RENTALS, RATES, FARES, FEES, AND OTHER CHARGES AN D 22
REVENUES OR OTHER MONEY SO PL EDGED AND LATER RECE IVED BY THE MARC 23
RAIL AUTHORITY IMMEDIATELY SHALL BE SUBJECT TO THE LIEN OF THE PLED GE 24
WITHOUT PHYSICAL DEL IVERY OR ANY FURTHER ACT. 25
(3) THE LIEN OF THE PLEDG E IS VALID AND BINDI NG AS AGAINST ALL 26
PARTIES HAVING A NY CLAIMS OF ANY KIN D IN TORT, CONTRACT, OR OTHERWISE 27
AGAINST THE MARC RAIL AUTHORITY, WHETHER OR NOT THESE PARTIES HAVE 28
NOTICE OF THE PLEDGE . 29
(4) NOTWITHSTANDING ANY L AW TO THE CONTRARY , NEITHER THE 30 16 SENATE BILL 401
RESOLUTION NOR ANY T RUST AGREEMENT BY WH ICH A PLEDGE IS CREATED NEED 1
BE FILED OR RECORDED OTHER THAN IN THE RE CORDS OF THE MARC RAIL 2
AUTHORITY. 3
(C) THE USE AND DISPOSITI ON OF MONEY TO THE C REDIT OF THE MARC 4
RAIL AUTHORITY FUND IS SUBJECT TO TH E PROVISION OF THE A PPLICABLE BOND 5
AUTHORIZING RESOLUTI ON OR TRUST AGREEMENT . 6
7–1326. 7
WITHOUT IN ANY WAY LI MITING OR RESTRICTIN G ITS EFFECT OR 8
APPLICATION, THIS SUBTITLE IS INT ENDED TO AUTHORIZE T HE MARC RAIL 9
AUTHORITY TO FINANCE ANY ONE OR MORE OR A NY COMBINATION OF MARC 10
RAILROAD FACILITIES PROJECTS BY ANY ONE OR MORE OR COMBINATI ON OF ISSUES 11
OR SERIES OF BONDS S ECURED BY THE PLEDGE OF THE NET OR GROSS OR ANY 12
COMBINATION OF THE N ET OR GROSS RENTALS , RATES, FARES, FEES, AND OTHER 13
CHARGES AND REVENUES DERIVED FROM ANY MARC RAILROAD FACILITIES 14
PROJECT OR COMBINATI ON OF PROJECTS DESIGN ATED BY ANY BOND AUT HORIZING 15
RESOLUTION OR TRUST AGREEMENT SECURING T HE BONDS. 16
7–1327. 17
ALL MONEY THAT IS REC EIVED BY THE MARC RAIL AUTHORITY AS 18
PROCEEDS FROM THE SA LE OF REVENUE BONDS , NOTES, OR OTHER EVIDENCES O F 19
OBLIGATION UNDER TH IS SUBTITLE AND BY W AY OF RENTALS, RATES, FARES, FEES, 20
AND OTHER CHARGES AN D REVENUES DERIVED F ROM ANY MARC RAILROAD 21
FACILITIES PROJECT O R COMBINATION OF PRO JECTS AND THAT IS DE SIGNATED BY 22
ANY AUTHORIZING RESO LUTION OR TRUST AGRE EMENT AS SECURITY FO R THE 23
BONDS, NOTES, OR OTHER EVIDENCES O F OBLIGATION SHALL B E DEEMED TO BE 24
TRUST FUNDS TO BE HE LD AND APPLIED ONLY AS PROVIDED IN THIS SUBTITLE. 25
7–1328. 26
EXCEPT TO THE EXTENT RESTRICTED BY THE TR UST AGREEMENT , THE 27
TRUSTEE OR ANY HOLDE R OF REVENUE BONDS I SSUED UNDER THIS SUBTITLE O R 28
OF ANY OF THE COUPON S APPERTAINING TO TH E BONDS MAY: 29
(1) BRING A SUIT , AN ACTION, A MANDAMUS , OR ANY OTHER 30
PROCEEDING AT LAW OR IN EQUITY TO PROTECT AND ENFORCE ANY RIGH T UNDER 31
THE LAWS OF THE STATE OR UNDER THE BO ND AUTHORIZING RE SOLUTION OR 32
TRUST AGREEMENT ; AND 33
(2) ENFORCE AND COMPEL TH E PERFORMANCE OF ALL DUTIES 34 SENATE BILL 401 17
REQUIRED BY THIS SUB TITLE OR BY THE TRUS T AGREEMENT TO BE PE RFORMED BY 1
THE MARC RAIL AUTHORITY OR BY ANY O F ITS OFFICERS, INCLUDING THE FIXING , 2
CHARGING, AND COLLECTIN G OF RENTALS , RATES, FARES, FEES, AND OTHER 3
CHARGES AND REVENUES . 4
7–1329. 5
(A) ALL PUBLIC OFFICERS A ND PUBLIC AGENCIES O F THE STATE AND ITS 6
POLITICAL SUBDIVISIO NS, ALL BANKS, TRUST COMPANIES , SAVINGS AND LOAN 7
ASSOCIATIONS, INVESTMENT COMPANIES , AND OTHER S CARRYING ON A BANK ING 8
BUSINESS, ALL INSURANCE COMPAN IES, INSURANCE ASSOCIATIO NS, AND OTHERS 9
CARRYING ON AN INSUR ANCE BUSINESS , ALL PERSONAL REPRESE NTATIVES, 10
GUARDIANS, TRUSTEES, AND OTHER FIDUCIARIE S, AND ALL OTHER PERSON S MAY 11
LEGALLY AND PROPERLY INVEST FUNDS, INCLUDING CAPITAL IN THEIR CONTROL 12
OR BELONGING TO THEM , IN REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF 13
OBLIGATION ISSUED UN DER THIS SUBTITLE . 14
(B) THESE BONDS , NOTES, AND OTHER EVIDENCES OF OBLIGATION MAY 15
LEGALLY AND PROPERLY BE DEPOSITED WITH A ND RECEIVED BY ANY STATE OR 16
MUNICIPAL OFFICER OR ANY AGENCY OR POLITI CAL SUBDIVISION OF T HE STATE 17
FOR ANY PURPOSE FOR WHICH THE DEPOSIT OF BONDS OR OTHER OBLIG ATIONS OF 18
THE STATE IS AUTHORIZED B Y LAW. 19
7–1330. 20
THE REVENUE BONDS , NOTES, AND OTHER EVIDENCE S OF OBLIGATION 21
ISSUED UNDER THIS SU BTITLE, THEIR TRANSFER , THE INTEREST PAYABLE ON 22
THEM, AND ANY INCOME DERIV ED FROM THEM , INCLUDING ANY PROFIT REALIZED 23
IN THEIR SALE OR EXC HANGE, SHALL BE EXEMPT AT A LL TIMES FROM EVERY KIND 24
AND NATURE OF TAXATI ON BY THE STATE OR BY ANY OF IT S POLITICAL 25
SUBDIVISIONS, OR BY PUBLIC AGENCIE S OF ANY KIND. 26
7–1331. 27
(A) THE REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF OBLIGATION 28
ISSUED UNDER THIS SU BTITLE ARE NOT AND M AY NOT BE CONSIDERED TO 29
CONSTITUTE A DEBT OR A PLEDGE OF THE FAITH AND CREDIT OF THE STATE OF 30
MARYLAND, BUT SHALL BE PAYABLE ONLY FROM THE FUNDS FROM OR REVENUES 31
PROVIDED BY THIS SUB TITLE FOR THAT PURPO SE. 32
(B) ALL REVENUE BONDS , NOTES, AND OTHER EVIDENCES OF OBLIGATION 33
ISSUED UNDER THIS SU BTITLE SHALL CONTAIN A STATEMENT ON THEIR FACE TO 34
THE EFFECT THAT : 35 18 SENATE BILL 401
(1) THE STATE IS NOT OBLIGATE D TO PAY THE PRINCIP AL OF OR THE 1
INTEREST ON THEM EXC EPT FROM REVENUES ; AND 2
(2) NEITHER THE FAITH AND CREDIT NOR THE TAXIN G POWER OF 3
THE STATE IS PLEDGED TO T HE PAYMENT OF THE PRINCIPAL OF OR THE INTEREST 4
ON THEM. 5
7–1332. 6
IF THE MARC RAIL AUTHORITY INTENDS TO PLEDGE ANY FUTURE FE DERAL 7
AID FROM ANY SOURCE TO SUPPORT REPAYMENT OF ANY DEBT INSTRUME NT ISSUED 8
UNDER THIS SUBTITLE : 9
(1) THE AGGREGATE PRINCIP AL AMOUNT OF DEBT IS SUED UNDER 10
THIS SUBTITLE OR TITLE 3, SUBTITLE 6 OF THIS ARTICLE THAT IS SECURED BY A 11
PLEDGE OF FUTURE FED ERAL AID MAY NOT EXC EED $1,000,000,000 AS OF JUNE 30 12
OF ANY FISCAL YEAR ; 13
(2) THE DATE OF MATURITY MAY NOT BE LATER THA N 12 YEARS 14
AFTER THE DATE OF IS SUE; 15
(3) NOTWITHSTANDING § 3–215(D) OF THIS ARTICLE , IF FUTURE 16
FEDERAL AID IS INSUF FICIENT TO PAY THE P RINCIPAL OF AND INTE REST ON THE 17
BONDS ISSUED UNDER T HIS SUBTITLE WHEN DU E, THE TAX LEVIED UNDER § 3–215 18
OF THIS ARTICLE, TO THE EXTENT THE PR OCEEDS OF THE TAX ARE NOT NECE SSARY 19
TO PROVIDE THE SINKI NG FUND REQUIRED UND ER § 3–215(C) OF THIS ARTICLE, IS 20
IRREVOCABLY PLEDGED TO THE PAYMENT OF TH E PRINCIPAL OF AND I NTEREST ON 21
THE BONDS ISSUED UND ER THIS SUBTITLE AS THEY BECOME DUE AND PAYABLE; 22
(4) THE LIEN OF THE PLEDGE UNDER ITEM (3) OF THIS SECTION 23
SHALL AT ALL TIMES B E SUBORDINATE TO THE LIEN OF THE PLEDGE O F THE TAX 24
UNDER § 3–215(D) OF THIS ARTICLE TO T HE PAYMENT OF PRINCI PAL OF AND 25
INTEREST ON CONSOLID ATED TRANSPORTATION BONDS; AND 26
(5) NO PART OF THE TAX LEVIED UNDER § 3–215 OF THIS ARTICLE 27
MAY BE REPEALED , DIMINISHED, OR APPLIED TO ANY OT HER PURPOSE UNTIL : 28
(I) THE BONDS ISSUED UNDE R THIS SUBTITLE AND INTEREST 29
ON THEM HAVE BECOME DUE AND FULLY PAID ; OR 30
(II) ADEQUATE AND COMPLETE PROVISION FOR PAYMENT OF 31
THE PRINCIPAL AND IN TEREST HAS BEEN MADE . 32 SENATE BILL 401 19
7–1333. 1
(A) THE MARC RAIL AUTHORITY MAY ISSUE B OND ANTICIPATION NOT ES 2
SECURED BY A PLEDGE OF A LINE OF CREDIT EXTENDED TO THE STATE UNDER THE 3
FEDERAL TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT. 4
(B) NOTES ISSUED UNDER TH IS SECTION SHALL HAV E A MATURITY DATE OF 5
UP TO 3 YEARS AFTER THE DATE OF ISSUE. 6
(C) A PLEDGE OF A LINE OF CREDIT AS AUTHORIZED UNDER THIS SECTION 7
DOES NOT CONSTITUTE THE PLEDGE OF FUTURE FEDERAL REVENUES , AND NOTES 8
ISSUED UNDER THIS SE CTION ARE NOT SUBJEC T TO § 3–601(D) OF THIS ARTICLE OR 9
§ 7–1332 OF THIS SUBTITLE. 10
SECTION 2. AND BE IT FURTHER ENACTED, That the Maryland Department of 11
Transportation shall transition all MARC operations and contracts to the MARC Rail 12
Authority to the extent permissible by such agreements. 13
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2025. 15