Maryland SB 482: Creation of a State Debt - Baltimore County - White Marsh Volunteer Fire Company

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0482*

SENATE BILL 482
B2 7lr2020
CF HB 301
By: Senator Klausmeier
Introduced and read first time: January 30, 2017
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Creation of a State Debt – Baltimore County – White Marsh Volunteer Fire 2
Company 3

FOR the purpose of authorizing the creation of a State Debt not to exceed $350,000, the 4
proceeds to be used as a grant to the Board of Directors of the White Marsh Volunteer 5
Fire Company, Inc. 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; establishing a deadline for the encumbrance or 8
expenditure of the loan proceeds; and providing generally for the issuance and sale 9
of bonds evidencing the loan. 10

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That: 12

(1) The Board of Public Works may borrow money and incur indebtedness on 13
behalf of the State of Maryland through a State loan to be known as the Baltimore County 14
– White Marsh Volunteer Fire Company Loan of 2017 in a total principal amount equal to 15
the lesser of (i) $350,000 or (ii) the amount of the matching fund provided in accordance 16
with Section 1(5) below. This loan shall be evidenced by the issuance, sale, and delivery of 17
State general obligation bonds authorized by a resolution of the Board of Public Works and 18
issued, sold, and delivered in accordance with §§ 8–117 through 8–124 and 8–131.2 of the 19
State Finance and Procurement Article. 20

(2) The bonds to evidence this loan or installments of this loan may be sold as a 21
single issue or may be consolidated and sold as part of a single issue of bonds under § 22
8–122 of the State Finance and Procurement Article. 23

(3) The cash proceeds of the sale of the bonds shall be paid to the Treasurer and 24
first shall be applied to the payment of the expenses of issuing, selling, and delivering the 25
bonds, unless funds for this purpose are otherwise provided, and then shall be credited on 26
the books of the Comptroller and expended, on approval by the Board of Public Works, for 27

2 SENATE BILL 482

the following public purposes, including any applicable architects’ and engineers’ fees: as a 1
grant to the Board of Directors of the White Marsh Volunteer Fire Company, Inc. (referred 2
to hereafter in this Act as “the grantee”) for the acquisition, planning, design, construction, 3
repair, renovation, reconstruction, site improvement, and capital equipping of the White 4
Marsh Volunteer Fire Company building, located in Baltimore County. 5

(4) An annual State tax is imposed on all assessable property in the State in rate 6
and amount sufficient to pay the principal of and interest on the bonds, as and when due 7
and until paid in full. The principal shall be discharged within 15 years after the date of 8
issuance of the bonds. 9

(5) Prior to the payment of any funds under the provisions of this Act for the 10
purposes set forth in Section 1(3) above, the grantee shall provide and expend a matching 11
fund. No part of the grantee’s matching fund may be provided, either directly or indirectly, 12
from funds of the State, whether appropriated or unappropriated. No part of the fund may 13
consist of real property, in kind contributions, or funds expended prior to the effective date 14
of this Act. In case of any dispute as to the amount of the matching fund or what money or 15
assets may qualify as matching funds, the Board of Public Works shall determine the 16
matter and the Board’s decision is final. The grantee has until June 1, 2019, to present 17
evidence satisfactory to the Board of Public Works that a matching fund will be provided. 18
If satisfactory evidence is presented, the Board shall certify this fact and the amount of the 19
matching fund to the State Treasurer, and the proceeds of the loan equal to the amount of 20
the matching fund shall be expended for the purposes provided in this Act. Any amount of 21
the loan in excess of the amount of the matching fund certified by the Board of Public Works 22
shall be canceled and be of no further effect. 23

(6) The proceeds of the loan must be expended or encumbered by the Board of 24
Public Works for the purposes provided in this Act no later than June 1, 2024. If any funds 25
authorized by this Act remain unexpended or unencumbered after June 1, 2024, the 26
amount of the unencumbered or unexpended authorization shall be canceled and be of no 27
further effect. If bonds have been issued for the loan, the amount of unexpended or 28
unencumbered bond proceeds shall be disposed of as provided in § 8–129 of the State 29
Finance and Procurement Article. 30

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 31
1, 2017. 32