Maryland SB 502: Creation of a State Debt - Baltimore City - Community Empowerment and Wellness Center

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. 
        [Brackets] indicate matter deleted from existing law. 
           *sb0502*   
  
SENATE BILL 502 
B2   7lr2321 
    CF 7lr2399 
By: Senator Nathan–Pulliam 
Introduced and read first time: February 1, 2017 
Assigned to: Budget and Taxation 
 
A BILL ENTITLED 
 
AN ACT concerning 1 
 
Creation of a State Debt – Baltimore City – Community Empowerment and 2 
Wellness Center 3 
 
FOR the purpose of authorizing the creation of a State Debt in the amount of $500,000, the 4 
proceeds  to  be  used  as  a  grant  to  the  Board  of  Directors  of  the  Bethel  Outreach 5 
Center,  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; 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  15 
City – Community Empowerment and Wellness Center Loan of 2017 in the total principal 16 
amount of $500,000. This loan shall be evidenced by the issuance, sale, and delivery of State 17 
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 502  
 
 
the following public purposes, including any applicable architects’ and engineers’ fees: as a 1 
grant to the Board of Directors of the Bethel Outreach Center, Inc. (referred to hereafter in 2 
this  Act  as  “the  grantee”)  for  the  acquisition,  planning,  design,  construction,  repair, 3 
renovation,  reconstruction,  site  improvement,  and  capital  equipping  of  the  Community 4 
Empowerment and Wellness Center, located in Baltimore City. 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 of $200,000. No part of the grantee’s matching fund may be provided, either directly 12 
or indirectly, from funds of the State, whether appropriated or unappropriated. No part of 13 
the fund may consist of real property or funds expended prior to the effective date of this 14 
Act. The fund may consist of in kind contributions. In case of any dispute as to the amount 15 
of the matching fund or what money or assets may qualify as matching funds, the Board of 16 
Public Works shall determine the matter and the Board’s decision is final. The grantee has 17 
until  June  1,  2019,  to  present  evidence  satisfactory  to  the  Board  of  Public  Works  that  a 18 
matching fund will be provided. If satisfactory evidence is presented, the Board shall certify 19 
this  fact  to  the  State  Treasurer,  and  the  proceeds  of  the  loan  shall  be  expended  for  the 20 
purposes provided in this Act. 21 
 
 (6) No portion of the  proceeds of the loan or any of the matching funds may be 22 
used for the furtherance of sectarian religious instruction, or in connection with the design, 23 
acquisition,  or  construction  of  any  building  used  or  to  be  used  as  a  place  of  sectarian 24 
religious  worship  or  instruction,  or  in  connection  with  any  program  or  department  of 25 
divinity for any religious denomination. Upon the request of the Board of Public Works, the 26 
grantee  shall  submit  evidence  satisfactory  to  the  Board  that  none  of  the  proceeds  of  the 27 
loan or any matching funds have been or are being used f