EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0563*
SENATE BILL 563
M4, C7 5lr2989
CF HB 650
By: Senators Hester, Bailey, West, Ready, and Gallion
Introduced and read first time: January 23, 2025
Assigned to: Education, Energy, and the Environment and Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Maryland Fair and Agricultural Education Promise Fund – Establishment 2
(Maryland Fair and Agricultural Education Promise Act) 3
FOR the purpose of establishing the Maryland Fair and Agricultural Education Promise 4
Fund as a special, nonlapsing fund to provide grants that advance agricultural fairs 5
and education in the State; requiring interest earnings of the Fund to be credited to 6
the Fund; requiring a certain amount of proceeds from the State lottery, before being 7
allocated to the General Fund, to be allocated to the Fund; repealing the requirement 8
that a certain amount of annual proceeds from the State horse racing special fund 9
be used to promote State agricultural fairs and education; and generally relating to 10
the Maryland Fair and Agricultural Education Promise Fund. 11
BY adding to 12
Article – Agriculture 13
Section 10–2201 through 10–2203 to be under the new subtitle “Subtitle 22. 14
Maryland Fair and Agricultural Education Promise Fund” 15
Annotated Code of Maryland 16
(2016 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Business Regulation 19
Section 11–403 20
Annotated Code of Maryland 21
(2024 Replacement Volume) 22
BY repealing and reenacting, without amendments, 23
Article – State Finance and Procurement 24
Section 6–226(a)(2)(i) 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2024 Supplement) 27
2 SENATE BILL 563
BY repealing and reenacting, with amendments, 1
Article – State Finance and Procurement 2
Section 6–226(a)(2)(ii)204. and 205. 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2024 Supplement) 5
BY adding to 6
Article – State Finance and Procurement 7
Section 6–226(a)(2)(ii)206. 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2024 Supplement) 10
BY repealing and reenacting, without amendments, 11
Article – State Government 12
Section 9–120(a) 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – State Government 17
Section 9–120(b)(1)(xiii) and (xiv) 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2024 Supplement) 20
BY adding to 21
Article – State Government 22
Section 9–120(b)(1)(xiv) 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2024 Supplement) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27
Article – Agriculture 28
SUBTITLE 22. MARYLAND FAIR AND AGRICULTURAL EDUCATION PROMISE FUND. 29
10–2201. 30
IN THIS SUBTITLE, “FUND” MEANS THE MARYLAND FAIR AND AGRICULTURAL 31
EDUCATION PROMISE FUND. 32
10–2202. 33
(A) THERE IS A MARYLAND FAIR AND AGRICULTURAL EDUCATION 34
PROMISE FUND. 35 SENATE BILL 563 3
(B) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS THAT ADVANCE 1
AGRICULTURAL FAIRS A ND EDUCATION IN TH E STATE. 2
(C) THE COMPTROLLER SHALL ADM INISTER THE FUND. 3
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 4
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 5
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 6
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 7
(E) THE FUND CONSISTS OF : 8
(1) REVENUE DISTRIBUTED T O THE FUND UNDER § 9–120(B)(1)(XIV) 9
OF THE STATE GOVERNMENT ARTICLE; 10
(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 11
(3) INTEREST EARNINGS ; AND 12
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 13
THE BENEFIT OF THE FUND. 14
(F) THE FUND MAY BE USED ONLY : 15
(1) TO PROVIDE ANNUAL GRA NTS IN ACCORDANCE WI TH § 10–2203 16
OF THIS SUBTITLE; AND 17
(2) FOR ADMINISTRATIVE EX PENSES OF THE COMPTROLLER IN 18
CARRYING OUT THIS SUBTITL E. 19
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 20
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 21
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 22
THE FUND. 23
(H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCOR DANCE 24
WITH THE STATE BUDGET . 25
10–2203. 26
4 SENATE BILL 563
EACH YEAR, THE COMPTROLLER SHALL PAY FROM THE FUND AN ANNUAL 1
GRANT OF: 2
(1) $825,000 TO THE MARYLAND AGRICULTURAL FAIR BOARD TO 3
PROMOTE AND ENHANCE STATE AND COUNTY AGRI CULTURAL FAIRS AND E XHIBITS; 4
(2) $75,000 TO THE MARYLAND AGRICULTURAL EDUCATION 5
FOUNDATION, INC., TO PROMOTE AND ENHAN CE STATEWIDE AGRICUL TURAL 6
EDUCATION; AND 7
(3) $550,000 TO THE MARYLAND STATE FAIR AND AGRICULTURAL 8
SOCIETY, INC., TO: 9
(I) PROMOTE AND ENHANCE T HE STATE AGRICULTURAL FAIR ; 10
AND 11
(II) MAINTAIN AND DEVELOP YOUTH AGRICULTURAL 12
PROGRAMS, WITH SUBSTANTIAL FUN DING PROVIDED TO ORG ANIZATIONS, 13
INCLUDING 4–H CLUBS AND THE MARYLAND FFA ASSOCIATION, FOR THE 14
PROVISION OF RECOGNI TION AND AWARDS . 15
Article – Business Regulation 16
11–403. 17
(a) The Comptroller shall pay from the Special Fund an annual grant of: 18
(1) [$825,000 to the Maryland Agricultural Fair Board to promote State 19
and county agricultural fairs and exhibits; 20
(2)] $100,000 to Prince George’s County to replace money formerly received 21
from the admissions and amusement tax; 22
[(3)] (2) $40,000 to the Great Frederick Fair to support exhibition 23
harness racing with money for construction and maintenance of new stalls, track 24
maintenance, and purses; 25
[(4)] (3) $50 to the City of Bowie for each day that the training facilities 26
are open at the Bowie Race Course Training Center; 27
[(5) $75,000 to the Maryland Agricultural Education Foundation, Inc., to 28
promote and enhance statewide agricultural education;] 29
[(6)] (4) an amount not to exceed $30,000 in fiscal year 1998 and $20,000 30
in each fiscal year thereafter to the Great Pocomoke Fair, Inc. to support exhibition harness 31 SENATE BILL 563 5
racing with money for construction and maintenance of new stalls, track maintenance, and 1
purses; 2
[(7)] (5) $500,000 to the Maryland Million, Ltd. to support and promote 3
the running of Maryland Million races; 4
[(8)] (6) $350,000 to the Maryland Standardbred Race Fund for the Sire 5
Stakes Program; and 6
[(9)] (7) beginning July 1, 2017, from the money distributed under § 7
9–120(b) of the State Government Article up to $500,000 to a purse for the Maryland 8
International thoroughbred race under § 11–522.1 of this title. 9
(b) (1) In fiscal year 2017, the Comptroller shall pay, from the money 10
distributed to the Special Fund, $500,000 to the Maryland Racing Commission to be used, 11
in a manner determined by the Maryland Racing Commission, for a bonus award program 12
for Maryland–bred or Maryland–sired horses running in the Preakness Stakes. 13
(2) The Maryland Racing Commission shall consult with representatives of 14
the thoroughbred racing industry prior to establishing the rules and criteria for the bonus 15
award program. 16
(3) If, under the rules of the bonus award program, funds remain in the 17
program after the Preakness Stakes is conducted on one or more occasions, remaining funds 18
shall carry over to the next fiscal year and may not revert to the General Fund. 19
(c) [If the Maryland State Fair remains at the Timonium Fair Grounds, the 20
Comptroller shall pay from the Special Fund an annual grant of: 21
(1) $500,000 to the Maryland State Fair and Agricultural Society, Inc., to: 22
(i) promote and enhance the Maryland State Fair; and 23
(ii) maintain and develop youth programs, with premium money 24
provided to organizations, such as 4–H Clubs and the Future Farmers of America, for 25
recognition and awards; and 26
(2) $50,000 to Baltimore County to replace the money formerly received by 27
the county under this subtitle. 28
(d)] Any amounts paid by the Comptroller for the purposes specified under 29
subsections [(a)(9)] (A)(7) and (b) of this section shall remain available for those purposes 30
and may not be used for any other purpose. 31
Article – State Finance and Procurement 32
6 SENATE BILL 563
6–226. 1
(a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 2
through 2028. 3
2. Notwithstanding any other provision of law, and unless 4
inconsistent with a federal law, grant agreement, or other federal requirement or with the 5
terms of a gift or settlement agreement, net interest on all State money allocated by the 6
State Treasurer under this section to special funds or accounts, and otherwise entitled to 7
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 8
Fund of the State. 9
(ii) The provisions of subparagraph (i) of this paragraph do not apply 10
to the following funds: 11
204. the Victims of Domestic Violence Program Grant Fund; 12
[and] 13
205. the Proposed Programs Collaborative Grant Fund; AND 14
206. THE MARYLAND FAIR AND AGRICULTURAL 15
EDUCATION PROMISE FUND. 16
Article – State Government 17
9–120. 18
(a) The Comptroller shall distribute, or cause to be distributed, the State Lottery 19
Fund to pay: 20
(1) on a pro rata basis for the daily and nondaily State lottery games, the 21
expenses of administering and operating the State lottery, as authorized under this subtitle 22
and the State budget; and 23
(2) then, except as provided in § 10–113.1 of the Family Law Article, § 24
11–618 of the Criminal Procedure Article, and § 3–307 of the State Finance and 25
Procurement Article, the holder of each winning ticket or share. 26
(b) (1) By the end of the month following collection, the Comptroller shall 27
deposit, cause to be deposited, or pay: 28
(xiii) after June 30, 2024, a supplemental local impact grant of 29
$3,000,000 each fiscal year to the County Executive and County Council of Prince George’s 30
County from the money that remains in the State Lottery Fund from the proceeds of all 31
lotteries after the distributions under subsection (a) of this section and items (i) through 32 SENATE BILL 563 7
(xii) of this paragraph to be distributed in Prince George’s County in accordance with § 1
9–1A–31 of this title; [and] 2
(XIV) AFTER JUNE 30, 2025, INTO THE MARYLAND FAIR AND 3
AGRICULTURAL EDUCATION PROMISE FUND ESTABLISHED UNDER § 10–2202 OF 4
THE AGRICULTURE ARTICLE FROM THE MONE Y THAT REMAINS IN TH E STATE 5
LOTTERY FUND FROM THE PROCEED S OF ALL LOTTERIES A FTER THE 6
DISTRIBUTIONS UNDER SUBSECTION (A) OF THIS SECTION AND ITEMS (I) THROUGH 7
(XIII) OF THIS PARAGRAPH , AN AMOUNT EQUAL TO $1,450,000 IN EACH FISCAL YEAR ; 8
AND 9
[(xiv)] (XV) into the General Fund of the State the money that remains 10
in the State Lottery Fund from the proceeds of all lotteries after the distributions under 11
subsection (a) of this section and items (i) through [(xiii)] (XIV) of this paragraph. 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 13
1, 2025. 14