§10–205.

    (a)    In accordance with and subject to the principle that, if there is substantial State financial support for the planned rapid rail mass transit system in one metropolitan area of this State, there should be substantial State financial support for the planned rapid rail mass transit system in the other metropolitan area of this State, and subject to the appropriation requirements and budgetary provisions of § 3–216(d) of this article, the Department shall provide for grants to the Washington Suburban Transit District in an amount equal to the current expenditures required of the Washington Suburban Transit District in accordance with capital contributions agreements between the Washington Metropolitan Area Transit Authority, the Washington Suburban Transit District, and other participating jurisdictions. The Washington Suburban Transit District shall consult with the Secretary of Transportation prior to the execution of any capital contributions agreement.

    (b)    (1)    Subject to the appropriation requirements and budgetary provisions of § 3–216(d) of this article and upon receipt of an approval of a grant application in such form and detail as the Secretary shall reasonably require, the Department shall provide for annual grants to the Washington Suburban Transit District for a share of the operating deficits of the regional transit system for which the District is responsible. “Operating deficit” means operating costs less:

            (i)    The greater of operating revenues or 50 percent of the operating costs; and

            (ii)    All federal operating assistance.

        (2)    The Department’s share shall equal 100 percent of the operating deficit.

        (3)    (i)    For any fiscal year in which the total Maryland operating assistance provided in the approved Washington Metropolitan Area Transit Authority budget increases by more than 3% over the total operating assistance provided in the prior fiscal year’s approved Washington Metropolitan Area Transit Authority budget, the Secretary shall withhold an amount equal to 35% of the funds available under paragraphs (1) and (2) of this subsection.

            (ii)    For purposes of calculating a budget increase under subparagraph (i) of this paragraph, the following items may not be included:

                1.    The cost of any service, equipment, or facility that is required by law;

                2.    A capital project approved by the board of directors of the Washington Metropolitan Area Transit Authority;

                3.    Any payments or obligations arising from or related to legal disputes or proceedings or arbitration proceedings between or among the Washington Metropolitan Area Transit Authority and any other person; and

                4.    Any service increases approved by the board of directors of the Washington Metropolitan Area Transit Authority.

    (c)    Subject to the appropriation requirements and budgetary provision of § 3–216(d) of this article, the Department shall provide for grants to the Washington Suburban Transit District in an amount equal to 75 percent of the net debt service assigned to the Washington Suburban Transit District on bonds issued by the Washington Metropolitan Area Transit Authority. In no event shall the amount of net debt service, including the refinancing of any debt, required of the Washington Suburban Transit District exceed the amount presently assigned on a year by year basis to the Washington Suburban Transit District, and payable through the year 2014. Nothing in this article shall preclude the use of bond proceeds for capital improvements and replacements of the “Adopted Regional System – 1968” revised as of January 1, 1992.

    (d)    (1)    In accordance with and subject to the principle that, if there is substantial State financial support for rapid rail and bus transit capital replacement costs in one metropolitan area of this State, there should be substantial State financial support for the costs of similar needs in the other metropolitan area of this State, and in recognition of the fact that timely replacement of capital facilities and equipment is essential to safe and reliable transit service, the Department shall provide grants to fully fund the Washington Suburban Transit District’s share of the Washington Metropolitan Area Transit Authority’s capital equipment replacement programs.

        (2)    The grants under this subsection:

            (i)    Shall be made subject to the appropriation and budgetary provisions of § 3–216(d) of this article;

            (ii)    Shall be included in the State budget beginning in fiscal year 2000;

            (iii)    Notwithstanding any other provision of law, may be funded with revenues derived from:

                1.    Any State–enacted transportation fees or taxes; or

                2.    Federal transportation grants available to the State to fund transit capital equipment replacement; and

            (iv)    Shall be contingent on the receipt of a request by the District to the Department, based on annual capital improvements programs adopted by the Washington Metropolitan Area Transit Authority.

    (e)    Subject to the appropriation requirements and budgetary provisions of § 3–216(d) of this article, the Department shall provide grants from amounts derived from the Transportation Trust Fund to the Washington Suburban Transit District for the purpose of funding Maryland’s required share of local funds for the Washington Metropolitan Area Transit Authority to match any federal funds appropriated in any given year authorized under Title VI, § 601, P.L. 110–432.

    (f)    (1)    Except as provided in paragraph (2) of this subsection, the Governor shall include an appropriation in the annual budget of at least the amount specified in paragraph (4) of this subsection for the sole purpose of providing grants to the Washington Suburban Transit District to pay the capital costs of the Washington Metropolitan Area Transit Authority.

        (2)    (i)    The Governor is not required to make the appropriation under paragraph (1) of this subsection in a fiscal year unless the Department certifies to the Governor in writing before the beginning of the immediately preceding fiscal year that the Washington Metropolitan Area Transit Authority has submitted to the Department:

                1.    Performance and condition assessments and reports regarding:

                A.    The safety and reliability of rapid heavy rail and bus systems;

                B.    The financial performance of the Washington Metropolitan Area Transit Authority as it relates to rail and bus operations, including fare box recovery, service per rider, and cost per service hour;

                C.    The monthly ridership of rail and bus systems broken down by Metrorail station, Metrorail line, bus route, and bus line;

                D.    Strategies to reduce costs and improve the Washington Metropolitan Area Transit Authority’s operational efficiency; and

                E.    The comparison of annual capital investments and approved budgets; and

                2.    The Washington Metropolitan Area Transit Authority’s:

                A.    Annual budget;

                B.    Annual independent financial audit;

                C.    Annual National Transit Database profile; and

                D.    Single audit reports issued in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards under 2 C.F.R. Part 200.

            (ii)    If the Commonwealth of Virginia or the District of Columbia reduce the amount of dedicated capital funding for the Washington Metropolitan Area Transit Authority, the Governor may reduce the appropriation under paragraph (1) of this subsection by a proportional amount.

            (iii)    1.    The Governor shall withhold 35% of the appropriation under paragraph (1) of this subsection if:

                A.    The Washington Metropolitan Area Transit Authority has received a modified audit opinion as a result of an annual independent audit conducted in accordance with Article XVI, Section 70 of the Washington Metropolitan Area Transit Authority Compact under § 10–204 of this subtitle; and

                B.    The Department has not certified to the Governor in writing before the beginning of the immediately preceding fiscal year that the Washington Metropolitan Area Transit Authority has submitted in writing to the board of directors of the Washington Metropolitan Area Transit Authority and the Maryland General Assembly a satisfactory corrective plan that addresses the reasons for the modified audit opinion.

                2.    The Governor shall release the portion of the appropriation withheld under subsubparagraph 1 of this subparagraph if the Washington Metropolitan Area Transit Authority submits in writing to the board of directors of the Washington Metropolitan Area Transit Authority and, in accordance with § 2–1257 of the State Government Article, the Maryland General Assembly a satisfactory corrective action plan that addresses the reasons for the modified audit opinion.

        (3)    The Governor shall make the appropriation under paragraph (1) of this subsection from the Transportation Trust Fund.

        (4)    (i)    For the first fiscal year in which the mandated appropriation under this subsection applies, the appropriation under paragraph (1) of this subsection shall equal at least the amount appropriated in the fiscal year 2019 State budget as enacted for the Washington Suburban Transit District to pay the capital costs of the Washington Metropolitan Area Transit Authority.

            (ii)    For each fiscal year after the first fiscal year in which the mandated appropriation under this subsection applies, the appropriation under paragraph (1) of this subsection shall be equal to the amount of the appropriation for the preceding fiscal year increased by 3%.

    (g)    (1)    The Governor shall include in the State budget an appropriation for the purposes specified under paragraph (2) of this subsection of $167,000,000 from the revenues available for the State capital program in the Transportation Trust Fund.

        (2)    The Department shall provide an annual grant of at least $167,000,000 to the Washington Suburban Transit District to be used only to pay the capital costs of the Washington Metropolitan Area Transit Authority.

        (3)    The grant required under paragraph (2) of this subsection is in addition to the appropriation required under subsection (f)(1) of this section.