Maryland SB 1108: Creation of a State Debt - Frederick County - Brunswick Junior Railroaders

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb1108*

SENATE BILL 1108
B2 8lr3648
CF HB 1671
By: Senators Hough and Young
Introduced and read first time: February 14, 2018
Assigned to: Rules

A BILL ENTITLED

AN ACT concerning 1

Creation of a State Debt – Frederick County – Brunswick Junior Railroaders 2

FOR the purpose of authorizing the creation of a State Debt not to exceed $20,000, the 3
proceeds to be used as a grant to the Board of Directors of the Brunswick Junior 4
Railroaders Boosters, Inc. for certain development or improvement purposes; 5
providing for disbursement of the loan proceeds, subject to a requirement that the 6
grantee provide and expend a matching fund; establishing a deadline for the 7
encumbrance or expenditure of the loan proceeds; and providing generally for the 8
issuance and sale of bonds evidencing the loan. 9

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That: 11

(1) The Board of Public Works may borrow money and incur indebtedness on 12
behalf of the State of Maryland through a State loan to be known as the Frederick County 13
– Brunswick Junior Railroaders Loan of 2018 in a total principal amount equal to the lesser 14
of (i) $20,000 or (ii) the amount of the matching fund provided in accordance with Section 15
1(5) below. This loan shall be evidenced by the issuance, sale, and delivery of State general 16
obligation bonds authorized by a resolution of the Board of Public Works and issued, sold, 17
and delivered in accordance with §§ 8–117 through 8–124 and 8–131.2 of the State Finance 18
and Procurement Article. 19

(2) The bonds to evidence this loan or installments of this loan may be sold as a 20
single issue or may be consolidated and sold as part of a single issue of bonds under § 21
8–122 of the State Finance and Procurement Article. 22

(3) The cash proceeds of the sale of the bonds shall be paid to the Treasurer and 23
first shall be applied to the payment of the expenses of issuing, selling, and delivering the 24
bonds, unless funds for this purpose are otherwise provided, and then shall be credited on 25
the books of the Comptroller and expended, on approval by the Board of Public Works, for 26
the following public purposes, including any applicable architects’ and engineers’ fees: as a 27

2 SENATE BILL 1108

grant to the Board of Directors of the Brunswick Junior Railroaders Boosters, Inc. (referred 1
to hereafter in this Act as “the grantee”) for the acquisition, planning, design, construction, 2
repair, renovation, reconstruction, site improvement, and capital equipping of the 3
Brunswick Junior Railroaders youth sports facility, located in Frederick County. 4

(4) An annual State tax is imposed on all assessable property in the State in rate 5
and amount sufficient to pay the principal of and interest on the bonds, as and when due 6
and until paid in full. The principal shall be discharged within 15 years after the date of 7
issuance of the bonds. 8

(5) Prior to the payment of any funds under the provisions of this Act for the 9
purposes set forth in Section 1(3) above, the grantee shall provide and expend a matching 10
fund. No part of the grantee’s matching fund may be provided, either directly or indirectly, 11
from funds of the State, whether appropriated or unappropriated. No part of the fund may 12
consist of real property or funds expended prior to the effective date of this Act. The fund 13
may consist of in kind contributions. In case of any dispute as to the amount of the matching 14
fund or what money or assets may qualify as matching funds, the Board of Public Works 15
shall determine the matter and the Board’s decision is final. The grantee has until June 1, 16
2020, to present evidence satisfactory to the Board of Public Works that a matching fund 17
will be provided. If satisfactory evidence is presented, the Board shall certify this fact and 18
the amount of the matching fund to the State Treasurer, and the proceeds of the loan equal 19
to the amount of the matching fund shall be expended for the purposes provided in this Act. 20
Any amount of the loan in excess of the amount of the matching fund certified by the Board 21
of Public Works shall be canceled and be of no further effect. 22

(6) The proceeds of the loan must be expended or encumbered by the Board of 23
Public Works for the purposes provided in this Act no later than June 1, 2025. If any funds 24
authorized by this Act remain unexpended or unencumbered after June 1, 2025, the 25
amount of the unencumbered or unexpended authorization shall be canceled and be of no 26
further effect. If bonds have been issued for the loan, the amount of unexpended or 27
unencumbered bond proceeds shall be disposed of as provided in § 8–129 of the State 28
Finance and Procurement Article. 29

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 30
1, 2018. 31