Maryland HB 1034: Creation of a State Debt - Baltimore County - Morning Star Family Life Center

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1034*

HOUSE BILL 1034
B2 7lr2292
CF SB 637
By: Delegates Sydnor and P. Young
Introduced and read first time: February 8, 2017
Assigned to: Appropriations

A BILL ENTITLED

AN ACT concerning 1

Creation of a State Debt – Baltimore County – Morning Star Family Life Center 2

FOR the purpose of authorizing the creation of a State Debt not to exceed $400,000, the 3
proceeds to be used as a grant to the Board of Directors of the MSBC Five Star 4
Program, Inc. and the Board of Trustees of Morning Star Baptist Church of 5
Baltimore County for certain development or improvement purposes; providing for 6
disbursement of the loan proceeds, subject to a requirement that the grantee provide 7
and expend a matching fund; prohibiting the use of the loan proceeds or matching 8
fund for sectarian religious purposes; establishing a deadline for the encumbrance 9
or expenditure of the loan proceeds; and providing generally for the issuance and 10
sale of bonds evidencing the loan. 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That: 13

(1) The Board of Public Works may borrow money and incur indebtedness on 14
behalf of the State of Maryland through a State loan to be known as the Baltimore County 15
– Morning Star Family Life Center Loan of 2017 in a total principal amount equal to the 16
lesser of (i) $400,000 or (ii) the amount of the matching fund provided in accordance with 17
Section 1(5) below. This loan shall be evidenced by the issuance, sale, and delivery of State 18
general obligation bonds authorized by a resolution of the Board of Public Works and 19
issued, sold, and delivered in accordance with §§ 8–117 through 8–124 and 8–131.2 of the 20
State Finance and Procurement Article. 21

(2) The bonds to evidence this loan or installments of this loan may be sold as a 22
single issue or may be consolidated and sold as part of a single issue of bonds under § 23
8–122 of the State Finance and Procurement Article. 24

(3) The cash proceeds of the sale of the bonds shall be paid to the Treasurer and 25
first shall be applied to the payment of the expenses of issuing, selling, and delivering the 26
bonds, unless funds for this purpose are otherwise provided, and then shall be credited on 27

2 HOUSE BILL 1034

the books of the Comptroller and expended, on approval by the Board of Public Works, for 1
the following public purposes, including any applicable architects’ and engineers’ fees: as a 2
grant to the Board of Directors of the MSBC Five Star Program, Inc. and the Board of 3
Trustees of Morning Star Baptist Church of Baltimore County (referred to hereafter in this 4
Act as “the grantee”) for the acquisition, planning, design, construction, repair, renovation, 5
reconstruction, site improvement, and capital equipping of the Morning Star Family Life 6
Center, located in Baltimore County. 7

(4) An annual State tax is imposed on all assessable property in the State in rate 8
and amount sufficient to pay the principal of and interest on the bonds, as and when due 9
and until paid in full. The principal shall be discharged within 15 years after the date of 10
issuance of the bonds. 11

(5) Prior to the payment of any funds under the provisions of this Act for the 12
purposes set forth in Section 1(3) above, the grantee shall provide and expend a matching 13
fund. No part of the grantee’s matching fund may be provided, either directly or indirectly, 14
from funds of the State, whether appropriated or unappropriated. The fund may consist of 15
real property, in kind contributions, or funds expended prior to the effective date of this 16
Act. In case of any dispute as to the amount of the matching fund or what money or assets 17
may qualify as matching funds, the Board of Public Works shall determine the matter and 18
the Board’s decision is final. The grantee has until June 1, 2019, to present evidence 19
satisfactory to the Board of Public Works that a matching fund will be provided. If 20
satisfactory evidence is presented, the Board shall certify this fact and the amount of the 21
matching fund to the State Treasurer, and the proceeds of the loan equal to the amount of 22
the matching fund shall be expended for the purposes provided in this Act. Any amount of 23
the loan in excess of the amount of the matching fund certified by the Board of Public Works 24
shall be canceled and be of no further effect. 25

(6) No portion of the proceeds of the loan or any of the matching funds may be 26
used for the furtherance of sectarian religious instruction, or in connection with the design, 27
acquisition, or construction of any building used or to be used as a place of sectarian 28
religious worship or instruction, or in connection with any program or department of 29
divinity for any religious denomination. Upon the request of the Board of Public Works, the 30
grantee shall submit evidence s