Article - Economic Development
§10–645.
(a) (1) Except
as agreed to in the memorandum of understanding under § 10–646
of this subtitle, the Authority shall comply with this section and §
5–301 of the Education Article to finance improvements to a
Baltimore City public school facility.
(2) The Authority
and the Baltimore City Board of School Commissioners, as agreed to
in the memorandum of understanding under § 10–646 of this
subtitle and subject to paragraph (1) of this subsection, shall be
responsible for school facilities construction and improvements financed
with the proceeds of bonds issued under this subtitle in accordance
with the Baltimore City Public Schools’ 10–Year Plan approved
by the Baltimore City Board of School Commissioners on January 8,
2013, which may be amended from time to time in accordance with parameters
established for review and comment in the memorandum of understanding
established under § 10–646 of this subtitle.
(3) (i) Except
as agreed to in the memorandum of understanding under § 10–646
of this subtitle and subject to subparagraph (ii) of this paragraph,
a power granted to the Authority under this subtitle may not in any
way interfere with the enumerated powers of the Baltimore City Board
of School Commissioners under Title 4, Subtitle 3 of the Education
Article.
(ii) The powers
of the Baltimore City Board of School Commissioners may not limit
the ability of the Authority to carry out its obligations under this
subtitle with respect to the improvement of Baltimore City public
school facilities and the financing related to the improvements.
(b) (1) The
Authority may not use any of its own money, whether appropriated or
nonbudgeted, to pay for any costs or expenses related to financing
improvements to Baltimore City public school facilities.
(2) The sole source
of payment for any costs or expenses related to financing improvements
to Baltimore City public school facilities shall be the money on deposit
in the Baltimore City Public School Construction Facilities Fund and
the Baltimore City Public School Construction Financing Fund and bond
proceeds held under a trust agreement.
(c) At least 45
days before seeking approval of the Board of Public Works for each
Baltimore City public school facilities bond issue, the Authority
shall provide to the fiscal committees of the General Assembly written
notice of:
(1) the aggregate
amount of funds needed for the relevant Baltimore City public school
facilities, including a list of the facilities to be improved;
(2) the anticipated
total debt service for the proposed bond issue; and
(3) the anticipated
total debt service when combined with the debt service for all prior
outstanding bond issues for Baltimore City public school facilities.
(d) (1) A
bond issued to finance improvements to a Baltimore City public school
facility:
(i) is a limited
obligation of the Authority payable solely from money pledged by the
Authority to the payment of the principal of and the premium and interest
on the bond or money made available to the Authority for that purpose;
(ii) is not a debt,
liability, or a pledge of the faith and credit or the taxing power
of the State, the Authority, or other governmental unit; and
(iii) may not give
rise to any pecuniary liability of the State, the Authority, or other
governmental unit.
(2) The issuance
of a bond to finance improvements to a Baltimore City public school
facility is not directly, indirectly, or contingently a moral or other
obligation of the State, the Authority, or other governmental unit
to levy or pledge any tax or to make an appropriation to pay the bond.
(3) Each bond shall
state on its face the provisions of paragraphs (1) and (2) of this
subsection.
(e) Before each
issuance of bonds to finance improvements to a Baltimore City public
school facility, the Authority shall obtain the approval of the Board
of Public Works of the proposed bond issue.
(f) The total debt
service for any bond issue, when added to all prior outstanding bond
issues related to improvements to Baltimore City public school facilities,
may not exceed the total amount of the funds provided under §
9–120(b)(1)(iii) of the State Government Article and the funds
provided under subsections (g) and (h) of this section.
(g) (1) Beginning
on July 1, 2013 and continuing until the bonds that have been issued
to finance improvements to Baltimore City public school facilities
are no longer outstanding and unpaid, Baltimore City shall deposit
into the Baltimore City Public School Construction Financing Fund:
(i) subject to
annual appropriation, all revenues and receipts from the beverage
container tax imposed by Baltimore City Ordinance No. 12–45,
enacted June 26, 2012;
(ii) the amounts
paid by the State Comptroller to Baltimore City from the proceeds
of table games at the video lottery facility located in Baltimore
City that are dedicated to school construction in accordance with §
9–1A–27(d)(2)(i)1 of the State Government Article;
(iii) subject to
annual appropriation, 10% of the participation rent paid to Baltimore
City by the operator of the video lottery facility located in Baltimore
City; and
(iv) any other
revenues dedicated to or appropriated to the Baltimore City Public
School Construction Financing Fund by Baltimore City.
(2) The money deposited
into the Baltimore City Public School Construction Financing Fund
in accordance with this subsection shall be at least:
(i) $4,000,000
by November 1, 2014;
(ii) an additional
$4,000,000 by May 1, 2015;
(iii) an additional
$4,000,000 by November 1, 2015;
(iv) an additional
$4,000,000 by May 1, 2016; and
(v) until the bonds
are no longer outstanding and unpaid:
1. an additional
$5,000,000 by each November 1; and
2. an additional
$5,000,000 by each May 1.
(3) If the funds
deposited into the Baltimore City Public School Construction Financing
Fund are less than the amounts required under paragraph (2) of this
subsection:
(i) the Authority
shall transfer money held in reserve for Baltimore City in the Baltimore
City Public School Construction Facilities Fund to the Baltimore City
Public School Construction Financing Fund in an amount equal to the
lesser of:
1. the difference
between the amount required to be paid under paragraph (2) of this
subsection and the actual amount paid by Baltimore City; or
2. the amount held
in reserve for Baltimore City in the Baltimore City Public School
Construction Facilities Fund; and
(ii) if the amount
transferred to the Baltimore City Public School Construction Financing
Fund under subparagraph (i) of this paragraph is less than the difference
between the amount required to be paid under paragraph (2) of this
subsection and the actual amount paid by Baltimore City:
1. the Authority
shall direct the State Comptroller to withhold, under § 2–608
of the Tax – General Article, income tax revenue from Baltimore
City in an amount equal to the difference between the amount transferred
under subparagraph (i) of this paragraph and the amount required to
be paid under paragraph (2) of this subsection; and
2. the State Comptroller
shall credit the withheld amount to the Baltimore City Public School
Construction Financing Fund on behalf of Baltimore City on or before
the 15th day of the following December or June, as applicable.
(4) Any money deposited
by Baltimore City or on behalf of Baltimore City in accordance with
this section in excess of the amount required in any semiannual period
shall be transferred by the Authority to the Baltimore City Public
School Construction Facilities Fund and held in reserve in accordance
with paragraph (3) of this subsection and § 10–657 of this
subtitle.
(h) (1) Beginning
on July 1, 2013, and continuing until the bonds that have been issued
to finance improvements to Baltimore City public school facilities
are no longer outstanding and unpaid, the State Comptroller shall
withhold from any installment due the Baltimore City Board of School
Commissioners from the General State School Fund money representing
additional State funds received from recurring retiree health costs
shifted from Baltimore City to the Baltimore City Board of School
Commissioners and deposit into the Baltimore City Public School Construction
Financing Fund $10,000,000 for fiscal year 2014 and each fiscal year
thereafter, to be paid in equal bi–monthly payments.
(2) Beginning on
July 1, 2015, and continuing until the bonds that have been issued
to finance improvements to Baltimore City public school facilities
are no longer outstanding and unpaid, in addition to the amount withheld
under paragraph (1) of this subsection, the State Comptroller shall
withhold from any installment due the Baltimore City Board of School
Commissioners from the General State School Fund and deposit into
the Baltimore City Public School Construction Financing Fund the following
amounts, to be paid in equal bi–monthly payments:
(i) $10,000,000
for fiscal year 2016; and
(ii) $20,000,000
for fiscal year 2017 and each fiscal year thereafter.
(i) (1) If
the money deposited in the Baltimore City Public School Construction
Financing Fund in accordance with subsections (g) and (h) of this
section is not needed for debt service or debt service reserves, the
Authority may transfer those funds to the Baltimore City Public School
Construction Facilities Fund.
(2) If funds are
needed for debt service or debt service reserves, the Authority may
transfer money in the Baltimore City Public School Construction Facilities
Fund to the Baltimore City Public School Construction Financing Fund.
(j) In connection
with improvements to Baltimore City public school facilities, the
Baltimore City Board of School Commissioners shall:
(1) deliver to
the Authority buildable sites, ready for improvement and free from
any restrictions, easements, impediments, hazards or conditions that
would affect the Authority’s schedule or budget for the improvement
to a Baltimore City public school facility;
(2) assume responsibility
for the operation, maintenance, and repairs of each Baltimore City
public school facility immediately before the occupancy of the Baltimore
City public school facility or as agreed to in the memorandum of understanding
under § 10–646 of this subtitle; and
(3) except for
a transfer or assignment to the Baltimore City Board of School Commissioners,
obtain the approval of the State Superintendent of Schools and the
Board of Public Works before the sale, assignment, mortgage, pledge,
or encumbrance of any Baltimore City public school facility, or any
interest in the facility.
(k) (1) Subject
to subsection (b) of this section, before any bonds are issued to
finance improvements to a Baltimore City public school facility, the
Authority may pay for any costs of start–up, administration,
overhead, and operations of the Authority or costs of engineering,
architectural, and other design professionals.
(2) (i) Any
cost overruns, unbudgeted expenses, or unforeseen costs incurred in
connection with an improvement to a Baltimore City public school facility
shall be payable solely from the Baltimore City Public School Construction
Facilities Fund.
(ii) If any cost
overruns, unbudgeted expenses, or unforeseen costs occur as described
in subparagraph (i) of this paragraph, the Authority shall provide
a detailed report explaining the reasons for the cost overruns, unbudgeted
expenses, or unforeseen costs and a description of the actions taken
by the Authority to control costs within the budget established for
each improvement to a Baltimore City public school facility.
(l) On October
1, 2013, and each January 15 thereafter, the Authority, Baltimore
City, the Baltimore City Board of School Commissioners, and the Interagency
Committee on School Construction jointly shall report to the Governor,
the Board of Public Works and, in accordance with § 2–1246
of the State Government Article, the fiscal committees of the General
Assembly, on the progress of replacements, renovations, and maintenance
of Baltimore City public school facilities, including actions:
(1) taken during
the previous fiscal year; and
(2) planned for
the current fiscal year.
(m) Notwithstanding
any other provision of law, a demolition or partial demolition of
a school building under the Baltimore City Public Schools’ 10–year
Plan shall be exempt from any required notice to the Baltimore City
Council or the President of the Baltimore City Council.