Maryland SB 1091: Creation of a State Debt - Lutheran Mission Society Compassion Centers

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb1091*

SENATE BILL 1091
B2 8lr3677

By: Senator Reilly
Introduced and read first time: February 13, 2018
Assigned to: Rules

A BILL ENTITLED

AN ACT concerning 1

Creation of a State Debt – Lutheran Mission Society Compassion Centers 2

FOR the purpose of authorizing the creation of a State Debt not to exceed $300,000, the 3
proceeds to be used as a grant to the Board of Directors of the Lutheran Mission 4
Society of Maryland for certain development or improvement purposes; providing for 5
disbursement of the loan proceeds, subject to a requirement that the grantee provide 6
and expend a matching fund; prohibiting the use of the loan proceeds and matching 7
fund for sectarian religious purposes; establishing a deadline for the encumbrance 8
or expenditure of the loan proceeds; and providing generally for the issuance and 9
sale 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 Lutheran Mission 14
Society Compassion Centers Loan of 2018 in a total principal amount equal to the lesser of 15
(i) $300,000 or (ii) the amount of the matching fund provided in accordance with Section 16
1(5) below. This loan shall be evidenced by the issuance, sale, and delivery of State general 17
obligation bonds authorized by a resolution of the Board of Public Works and issued, sold, 18
and delivered in accordance with §§ 8–117 through 8–124 and 8–131.2 of the State Finance 19
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 1091

the following public purposes, including any applicable architects’ and engineers’ fees: as a 1
grant to the Board of Directors of the Lutheran Mission Society of Maryland (referred to 2
hereafter in this Act as “the grantee”) for the acquisition, planning, design, construction, 3
repair, renovation, reconstruction, site improvement, and capital equipping of Compassion 4
Centers for the Lutheran Mission Society of Maryland. 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, 2020, 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) No portion of the proceeds of the loan or any of the matching funds may be 24
used for the furtherance of sectarian religious instruction, or in connection with the design, 25
acquisition, or construction of any building used or to be used as a place of sectarian 26
religious worship or instruction, or in connection with any program or department of 27
divinity for any religious denomination. Upon the request of the Board of Public Works, the 28
grantee shall submit evidence satisfactory to the Board that none of the proceeds of the 29
loan or any matching funds have been or are being used for a purpose prohibited by this 30
Act. 31

(7) The proceeds