Maryland Public Charter School Program - School Facilities - Funding

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb1430*

HOUSE BILL 1430
F1 (6lr3297)
ENROLLED BILL
— Appropriations/Budget and Taxation —
Introduced by Delegate Chang Delegates Chang and Stonko

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_______ day of _______________ at __ ______________________ o’clock, ________M.

______________________________________________
Speaker.

CHAPTER ______

AN ACT concerning 1

Maryland Public Charter School Program – School Facilities – Funding 2

FOR the purpose of requiring the Interagency Commission on School Construction to 3
distribute certain funds to public charter schools for the maintenance and operation 4
of capital improvements to public charter school facilities, debt service, or rent or lease 5
payments; requiring certain public charter schools to report to the Interagency 6
Commission on School Construction on the status of certain projects ; and generally 7
relating to the funding of public charter school facilities in the Maryland Public 8
Charter School Program. 9

BY adding to 10
Article – Education 11
Section 9–109(c) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2025 Supplement) 14
2 HOUSE BILL 1430

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2

Article – Education 3

9–109. 4

(C) (1) (I) IN THIS SUBSECTION ,, “PUBLIC THE FOLLOWING WORDS 5
HAVE THE MEANINGS INDICATED. 6

(II) “PUBLIC “PUBLIC CHARTER SCHOOL FACIL ITIES” MEANS 7
PREMISES THAT ARE: 8

(I) 1. (I) OWNED OR LEASED BY A PUBLIC CHARTER SCHOOL; 9
OR 10

(II) 2. (II) OCCUPIED AND UTILIZED BY A PUBLIC CHARTER 11
SCHOOL TO PROVIDE A PROGRAM OF PRIMARY O R SECONDARY EDUCATION TO ITS 12
STUDENTS. 13

(III) “TOTAL AGGREGATE STUDE NT ENROLLMENT ” DOES NOT 14
INCLUDE STUDENT ENROLLMENT IN LOCAL SCHOOL SYSTEMS THAT: 15

1. HAVE CLOSED OVER 50 SCHOOLS SINCE 2010; AND 16

2. MADE SURPLUS FACILITIES AVAILABLE TO CHARTER 17
SCHOOLS. 18

(2) (I) 1. THE SUBJECT TO SUBSUBPARA GRAPH 2 OF THIS 19
SUBPARAGRAPH, THE INTERAGENCY COMMISSION ON SCHOOL CONSTRUCTION 20
SHALL DISTRIBUTE FUNDS TO PUBLIC CHARTER SCHOOLS FOR THE MAINTENANCE 21
AND OPERATION OF IN ACCORDANCE WITH T HIS SUBSECTION FOR C APITAL 22
IMPROVEMENTS TO PUBLIC CHARTER SCHOOL FACILITIES, DEBT SERVICE, OR RENT 23
OR LEASE PAYMENTS. 24

2. A PUBLIC CHARTER SCHOO L MAY RECEIVE FUNDS 25
UNDER THIS SUBSECTIO N ONLY IF THE OPERAT OR’S MOST RECENT REQUIR ED 26
CERTIFIED FINANCIAL AUDIT IS UNQUALIFIED. 27

(II) FUNDS DISBURSED UNDER SUBPARAGRAPH (I) OF THIS 28
PARAGRAPH SHALL BE PAID DIRECTLY TO THE PUBLIC CHARTER SCHOOL AND MAY 29
NOT BE PAID TO A LOCAL GOVERNING BODY OR COUNTY BOARD. 30

HOUSE BILL 1430 3

(3) IF A PUBLIC CHARTER SCHOOL IS LOCATED IN A BUILDING OWNED 1
BY THE LOCAL SCHOOL SYSTEM, THE INTERAGENCY COMMISSION ON SCHOOL 2
CONSTRUCTION MAY NOT DISTRIBUTE FUNDS TO THE PUBLIC CHARTER S CHOOL 3
FOR CAPITAL IMPROVEM ENTS TO THE SCHOOL F ACILITY, DEBT SERVICE, OR RENT 4
OR LEASE PAYMENTS UNDER THIS SUBSECTION IN FISCAL YEARS DURING WHICH THE 5
SCHOOL FACILITY IS UNDERGOING A PROJECT THAT IS RECEIVING STATE FUNDING 6
THROUGH THE CAPITAL IMPROVEMENT PROGRAM. 7

(4) IF THE TOTAL AMOUNT OF THE CAPITAL IMPROVEMENT PROGRAM 8
IN A FISCAL YEAR IS LESS THAN THE TOTAL AMOUNT IN THE PRIOR FISCAL YEAR, THE 9
AMOUNT OF FUNDS DIST RIBUTED TO PUBLIC CH ARTER SCHOOLS UNDER THIS 10
SUBSECTION FOR THE FISCAL YEAR SHALL BE PROPORTIONATELY REDUCED. 11

(5) THE INTERAGENCY COMMISSION ON SCHOOL CONSTRUCTION 12
MAY NOT USE FUNDS DI STRIBUTED TO A PUBLI C CHARTER SCHOOL UND ER THIS 13
SUBSECTION AS JUSTIF ICATION TO REDUCE TH E AMOUNT PROVIDED TO A LOCAL 14
SCHOOL SYSTEM THROUGH THE CAPITAL IMPROVEMENT PROGRAM. 15

(6) A PUBLIC CHARTER SCHOOL THAT RECEIVES FUNDS UNDER THIS 16
SUBSECTION DURING A FISCAL YEAR SHALL RE PORT TO THE INTERAGENCY 17
COMMISSION ON SCHOOL CONSTRUCTION ON THE S TATUS OF ANY PROJECT FOR 18
CAPITAL IMPROVEMENTS TO PUBLIC CHARTER SCHOOL FACILITIES, DEBT SERVICE, 19
OR RENT OR LEASE PAYMENTS BEFORE THE PUBLIC CHARTER SCHOOL MAY RECEIVE 20
FUNDS FOR THE FOLLOWING FISCAL YEAR. 21

(3) (7) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR 22
THEREAFTER, THE GOVERNOR SHALL INCLUDE IN THE ANNUA L BUDGET BILL AN 23
APPROPRIATION FOR THE MAINTENANCE AND OPERATION OF CAPITAL 24
IMPROVEMENTS TO PUBLIC CHARTER SCHOOL FACILITIES, DEBT SERVICE, OR RENT 25
OR LEASE PAYMENTS THAT IS EQUAL TO THE TOTAL AGGREGATE STUD ENT 26
ENROLLMENT IN THE MARYLAND PUBLIC CHARTER SCHOOL PROGRAM FOR THE 27
PRIOR FISCAL YEAR MULTIPLIED BY $1,600 $200. 28

(4) (8) (I) THE INTERAGENCY COMMISSION ON SCHOOL 29
CONSTRUCTION SHALL ADOPT REGULATIONS TO CARRY OUT THIS SUBSECTION. 30

(II) IN THE REGULATIONS ADOPTED UNDER SUBPARAGRAPH (I) 31
OF THIS PARAGRAPH, THE INTERAGENCY COMMISSION ON SCHOOL CONSTRUCTION 32
SHALL INCLUDE REGULATIONS THAT: 33

1. ESTABLISH THE PROCEDU RES TO COMPLY WITH 34
PARAGRAPH (3) OF THIS SUBSECTION I F A LOCAL SCHOOL SYS TEM SUBMITS A 35
MID–YEAR CAPITAL PROJECT FUNDING REQUEST; AND 36

4 HOUSE BILL 1430

2. ENSURE A PUBLIC CHART ER SCHOOL RECEIVES 1
FUNDS UNDER THIS SUB SECTION IF THE LOCAL SCHOOL SYSTEM RESCIN DS A 2
CAPITAL PROJECT FUND ING REQUEST AND THE PUBLIC CHARTER SCHOO L IS 3
SUBSEQUENTLY ELIGIBLE FOR FUNDING UNDER THIS SUBSECTION. 4

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
1, 2026. 6

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.