2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 6 - Maryland Stadium Authority › Part VI - Miscellaneous Bond Provisions › Section 10-649 - School Facilities Construction and Improvements -- Powers of Authority -- Source of Funds -- Bond Issue -- Characteristics of Bonds -- Approvals Needed -- Total Debt Service -- Annual Reports

(a)    (1)    Except as provided in § 10–650 of this subtitle, the Authority shall comply with this section and § 5–303 of the Education Article to finance improvements to a public school facility.
(2)    The Authority, as agreed to in the project memorandum of understanding under § 10–650 of this subtitle and subject to paragraph (1) of this subsection, shall be responsible for school facilities construction and improvements financed with the proceeds of bonds issued under this subtitle.
(3)    (i)    Except as agreed to in the project memorandum of understanding under § 10–650 of this subtitle and subject to subparagraph (ii) of this paragraph, a power granted to the Authority under this subtitle may not in any way interfere with the enumerated powers of a county board of education under Title 3 of the Education Article.
(ii)    The powers of the county board of education may not limit the ability of the Authority to carry out its obligations under this subtitle with respect to improvements of the public school facility and the financing related to the improvements.
(b)    (1)    Except as provided in subsection (j)(1) of this section, the Authority may not use any current sources of funds, whether appropriated or nonbudgeted, to pay for any costs or expenses related to financing public school facilities.
(2)    The sole source of payment for any costs or expenses related to financing public school facilities shall be the money on deposit in the Supplemental Public School Construction Facilities Fund and the Supplemental Public School Construction Financing Fund and bond proceeds held under a trust agreement.
(c)    At least 45 days before seeking approval of the Board of Public Works for each public school facilities bond issue, the Authority shall provide to the fiscal committees of the General Assembly, in accordance with § 2–1257 of the State Government Article, written notice of:
(1)    the aggregate amount of funds needed for the public school facilities to be financed with the proposed bonds;
(2)    the anticipated total debt service for the proposed bond issue; and
(3)    the anticipated total debt service when combined with the debt service for all prior outstanding bond issues for public school facilities.
(d)    (1)    A bond issued to finance improvements, construction, or renovations to a public school facility:
(i)    is a limited obligation of the Authority payable solely from money pledged by the Authority to the payment of the principal of and the premium and interest on the bond or money made available to the Authority for that purpose;
(ii)    is not a debt, liability, or pledge of the faith and credit or the taxing power of the State, the Authority, or any other governmental unit; and
(iii)    may not give rise to any pecuniary liability of the State, the Authority, or any other governmental unit.
(2)    The issuance of a bond to finance improvements to a public school facility is not directly, indirectly, or contingently a moral or other obligation of the State, the Authority, or any other governmental unit to levy or pledge any tax or to make an appropriation to pay the bond.
(3)    Each bond shall state on its face the provisions of paragraphs (1) and (2) of this subsection.
(e)    (1)    Before each issuance of bonds to finance improvements to a public school facility, the Authority shall obtain the approval of the Board of Public Works of the aggregate amount of the proposed bond issue.
(2)    The Authority may issue bonds to finance improvements to a public school facility on or after January 1, 2021.
(f)    (1)    Except as provided in paragraph (2) of this subsection, the total debt service for any bond issue, when added to all prior outstanding bond issues related to improvements to public school facilities, may not exceed the total amount of the funds provided under subsection (g) of this section.
(2)    If Prince George’s County enters into a public–private partnership agreement under § 4–126.1 of the Education Article, the total debt service for all bond issues may not exceed $100,000,000.
(g)    (1)    In accordance with § 9–1A–30 of the State Government Article, the Comptroller shall deposit a portion of the money in the Education Trust Fund into the Supplemental Public School Construction Financing Fund for the program to be known as the Built to Learn Program.
(2)    The funds under paragraph (1) of this subsection shall be deposited in the following amounts:
(i)    in fiscal year 2022 – $30,000,000;
(ii)    in fiscal year 2023 – $60,000,000; and
(iii)    in fiscal year 2024 and each fiscal year thereafter – $125,000,000.
(3)    The Comptroller shall deposit 50% of the funds under paragraph (2) of this subsection on or before November 1 each year and the other 50% on or before May 1 each year.
(h)    (1)    If the money deposited into the Supplemental Public School Construction Financing Fund in accordance with subsection (g) of this section is not needed for debt service or debt service reserves, the Authority may transfer those funds to the Supplemental Public School Construction Facilities Fund.
(2)    If funds are needed for debt service or debt service reserves, the Authority may transfer money in the Supplemental Public School Construction Facilities Fund to the Supplemental Public School Construction Financing Fund.
(i)    Except as agreed to in the project memorandum of understanding under § 10–650 of this subtitle:
(1)    the Authority shall contract for, manage, and oversee public school facility projects funded from the Supplemental Public School Construction Financing Fund and the Supplemental Public School Construction Facilities Fund; and
(2)    the county board of education shall:
(i)    deliver to the Authority buildable sites, ready for improvement and free from any restrictions, easements, impediments, hazards, or conditions that would affect the Authority’s schedule or budget for the improvement to a public school facility;
(ii)    deliver to the Authority a public school facility with title that has vested in the county board of education or in an entity approved by the county board of education other than the Authority; and
(iii)    ensure that no public school facility is sold, assigned, mortgaged, pledged, or encumbered without the consent of the Authority if there are proceeds of bonds still outstanding or unpaid that were used in the construction of or renovations to the public school facility.
(j)    (1)    Before any bonds are issued to finance improvements to a public school facility, the Authority may pay for any costs of start–up, administration, overhead, and operations of the Authority or costs of engineering, architectural, and other design professionals.
(2)    Before the availability of funds from the Supplemental Public School Construction Facilities Fund, the Authority shall be entitled to reimbursement from the Supplemental Public School Construction Financing Fund for any costs described under paragraph (1) of this subsection.
(k)    On January 15, 2021, and each January 15 thereafter, the Authority shall report to the Governor, the Board of Public Works, and, in accordance with § 2–1257 of the State Government Article, the fiscal committees of the General Assembly on the progress of construction and renovations of public school facilities, including actions:
(1)    taken during the previous fiscal year; and
(2)    planned for the current fiscal year.
(l)    (1)    On or before July 1, 2030, the Authority shall complete a 10–year evaluation of the effectiveness of the issuance of bonds to finance construction and renovations of public school facilities.
(2)    On or before December 31, 2030, the Interagency Commission on School Construction shall submit a report on the results of the evaluation required under paragraph (1) of this subsection to the Governor and, in accordance with § 2–1257 of the State Government Article, the fiscal committees of the General Assembly.