Title 5. Financing — Subtitle 3. State Aid for School Construction

The State Superintendent of Schools, or the Superintendent’s designee;

The Secretary of Planning, or the Secretary’s designee;

The Secretary of General Services, or the Secretary’s designee;

Two members of the public appointed by the Governor;

Two members of the public appointed by the President of the Senate; and

Two members of the public appointed by the Speaker of the House.

An appointed member of the Interagency Commission may not be:

An appointed member of the Interagency Commission may be removed for incompetence, misconduct, or failure to perform the duties of the position by:

May not receive compensation as a member of the Commission; but

Is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

The Interagency Commission is a public body and subject to Title 3 of the General Provisions Article.

Deliberations and decisions regarding the eligibility of projects and allocation of funding shall be considered quasi–legislative functions for the purposes of the Open Meetings Act.

The Interagency Commission may employ staff, including contractual staff, in accordance with the State budget.

The Interagency Commission shall appoint an Executive Director of the Interagency Commission.

The cost of acquiring land may not be considered a construction or capital improvement cost and may not be paid by the State.

The Interagency Commission shall adopt regulations for the Public School Construction Program that:

Require each unit to include appropriate air barriers to limit infiltration;

Require that each unit be constructed in a manner that provides protection against water damage through the use of proper roofing materials, exterior sheathing, water drainage systems, and flashing;

Require that each unit provide continuous forced ventilation when the unit is occupied;

Require each unit to include a programmable thermostat;

Require each unit to be outfitted with energy efficient lighting and heating and air–conditioning systems; and

Mandate that each unit be constructed with building materials that contain low amounts of volatile organic compounds (VOC) in accordance with industry standards.

The projects or improvements have been approved by the Interagency Commission; and

Contracts have been executed on or after July 1, 1971, for the projects or improvements.

The Interagency Commission may adopt regulations for the administration of the programs provided for in this section.

The regulations adopted by the Interagency Commission may contain requirements for:

The regulations adopted by the Interagency Commission shall contain provisions:

In adopting any of these requirements, the State Board and the Interagency Commission shall provide for the maximum exercise of initiative by school personnel in each county to ensure that the school buildings and improvements meet both the needs of the local communities and the rules and regulations necessary to ensure the proper operation of this section and the prudent expenditure of State funds.

The Interagency Commission shall:

When adopting the State and local cost–share formula under paragraph (3)(i) of this subsection, the Interagency Commission shall set the State share at 100% for the Maryland School for the Blind.

With respect to public school construction or public school capital improvements, including sites for school buildings, the authority, responsibilities, powers, and duties of the following are subject to the regulations adopted by the Interagency Commission under this section:

If, as to public school construction or public school capital improvements, there is any conflict between the regulations and procedures of the Interagency Commission and the authority, responsibilities, powers, and duties of the individuals and agencies specified in paragraph (1) of this subsection, the regulations and procedures of the Interagency Commission shall prevail.

The obligation of the State to pay the costs of public school construction and public school capital improvements extends only to those projects or parts of projects that comply with the regulations and procedures of the Interagency Commission.

The Interagency Commission may not partially fund an eligible school construction project for a systemic renovation unless the local education agency has requested partial funding.

This subsection does not apply to the proceeds from the sale, lease, or disposition of public school buildings constructed under contracts executed before February 1, 1971.

Consistent with § 4–115 of this article and regulations adopted by the Interagency Commission to implement § 4–126 of this article, the Interagency Commission may require by regulation that the portion of the proceeds received by a county from the sale, lease, or disposal of any public school building that represent State funds provided within 15 years prior to the date of the transaction shall be used solely as part of the State funding of the construction of future public school buildings in the county in which the sale, lease, or disposal occurred, if the public school building was constructed under a contract executed on or after February 1, 1971.

The part of the proceeds from the sale, lease, or disposal of a public school building that fairly represents the appraised value of land and that part of the cost of the public school building that was funded by the county shall remain as the funds of the county.

A transfer of interest in a public school building in connection with a financing of the cost of construction and improvements to such buildings is not a sale, lease, or disposal of the public school facility.

Whether by budget bill or supplementary appropriation bill, all money appropriated to carry out the purposes of this section is a separate fund that shall be administered by the State Comptroller in accordance with the regulations adopted by the Interagency Commission.

Subject to paragraph (3) of this subsection, any unexpended allocations of funds for previously approved projects shall be transferred to the fund established under paragraph (1) of this subsection.

On or before February 28, May 31, August 31, and November 30 each year, the Interagency Commission shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, and the Department of Legislative Services on the balance in the fund as of the last day of the immediately preceding quarter as the result of transfers or reversions required under this subsection and any expenditures.

A county is eligible for an adjustment to the local cost–share for school construction projects under paragraph (2) of this subsection if:

A county shall receive:

Before May 1 each year, the Interagency Commission may not approve public school construction projects that comprise more than 75% of the preliminary school construction allocation, determined under § 8–113 of the State Finance and Procurement Article, for the following fiscal year.

On or after May 1 each year, the Interagency Commission shall approve 100% of the school construction allocation included in the capital budget bill as enacted.

A decision made by the Interagency Commission under the appeal process established by the Interagency Commission; and

The approval of public school construction projects under this subtitle.

The use of pre–fab and building system options;

Procurement methods;

School facility design and construction; and

Best practices in school construction.

Provide technical assistance and support to local education agencies on the use of alternative financing and alternative project delivery methods for school construction;

Develop a public–private partnership pilot program that:

Provide technical support for agreements between and among local education agencies and county governing bodies, including regional partnerships, to promote efficiency;

Utilize and promote technological advances to make school building design more efficient and innovative; and

Utilize and promote technology to streamline compliance review and project deliveries.

All money for the construction of public school buildings and public school facilities and the purchase of land for public schools in a separate account from that used for current expenses; and

A separate and independent accounting system for all public school construction money.

In Anne Arundel County, the county board may borrow from one fund to meet temporary cash requirements of another fund or to reimburse another fund for services performed.

This borrowing or reimbursement is subject to the county charter.

A statement of the objectives of the capital programs and the relationship of these programs to the long–range development plans adopted by the county;

Recommended capital projects and a proposed construction schedule;

An estimate of cost and a statement of all funding sources; and

All anticipated capital projects and programs of the county board, including substantial improvements and extensions of projects previously authorized.

On or before adoption of its annual budget and appropriations resolution in each even–numbered calendar year, the County Council shall adopt a 6–year capital improvements program for the county board as a part of the comprehensive 6–year program.

This 6–year capital improvements program shall be adopted after public hearings on the 6–year programs or capital budgets of the county and other agencies.

In its adoption, the County Council may make amendments, revisions, and modifications.

The County Council may amend an approved capital improvements program at any time by an affirmative vote of six council members.

Any amendment, revision, or modification may not become final until it is submitted to the county board for written comment with at least 30 days’ notice.

The Maryland–National Capital Park and Planning Commission;

The Prince George’s County library system;

The Prince George’s County Health Department;

The Prince George’s County Police Department;

The Prince George’s County Department of Social Services; and

The Prince George’s County Department of Family Services.

Was initially constructed on or before February 1, 1971;

Is no longer used for a purpose that is eligible for State funding for public school construction;

Has had title transferred to a county government; and

Is being used for local governmental purposes other than public education; provided, however, that if a former school building is sold by a county government the State shall be reimbursed for outstanding debt service, and if more than 10 percent of usable space within a former school is rented for an amount exceeding the cost of operating and maintaining such space, such rental profit shall be used toward retiring outstanding bonded indebtedness.

Was constructed under this subtitle;

Was initially constructed or substantially altered by additions, alterations, or renovations and the cost of the construction at the time of execution exceeded $100,000 and the work was accomplished after February 1, 1971;

Is no longer used for a purpose that is eligible for State funding for public school construction;

Has had title transferred to a county government;

Is being used for local governmental purposes by the State or a county or by any instrumentality of the State or county other than public education; and

Has outstanding debt which exceeds $5,000.

A county government is not required to reimburse the State for outstanding debt service for a school building that is transferred to the county government in accordance with subsection (b) of this section until 5 years after the school building is transferred.

After the 5–year period in paragraph (1) of this subsection ends, the county government shall reimburse the State for outstanding debt service for a school building in the amount that the county government would have been required to pay when the school building was transferred to the county.

The Interagency Commission on School Construction shall develop and provide incentives for local education agencies to use prototype school designs.

The incentives to use prototype school designs may include expedited State review of projects.

In this subsection, “net–zero” means that the total amount of energy used by a building on an annual basis is equal to or less than the amount of renewable energy created on the site.

The Interagency Commission shall establish incentives for:

Notify the budget committees of the General Assembly in writing of the proposed incentives; and

Allow the budget committees 30 days to review and comment on the proposed incentives.

In this section the following words have the meanings indicated.

“Educational facilities sufficiency standards” means a uniform set of criteria and measures for evaluating the physical attributes and educational suitability of public elementary and secondary school facilities in the State.

“Facility condition index” means a calculation to determine the relative physical condition of public school facilities by dividing the total repair cost of a facility by the total replacement cost of a facility.

On or before October 1 each year, the Interagency Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the results of the maintenance effectiveness assessment for the immediately preceding fiscal year.

On or before November 1 each year, the Interagency Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the results of the statewide facilities assessment for the immediately preceding fiscal year.

The purpose of the educational facilities sufficiency standards is to establish uniform standards for the assessment of the physical attributes, capacity, and educational suitability of public school facilities in Maryland.

The standards shall include at least the following categories:

The Interagency Commission shall periodically review and update the educational facilities sufficiency standards.

On or before July 1, 2019, the Interagency Commission shall complete an initial statewide facilities assessment using the educational facilities sufficiency standards adopted under subsections (c) and (d) of this section.

In completing the assessment the Interagency Commission shall:

Following the completion of the initial statewide facilities assessment, the Interagency Commission shall develop standards and procedures to comprehensively update the facilities assessment such that facility assessment data is not older than 4 years.

Local education agencies shall:

The Integrated Master Facility Asset Library shall include preventive maintenance schedules accessible to each local education agency.

Before the Integrated Master Facility Asset Library is established, the Interagency Commission may use facility assessment data to:

Except as provided in § 5–314(e) of this subtitle, each county board shall develop and adopt preventative maintenance schedules based on industry standards for the public school facilities within the jurisdiction of the county board.

On or before July 1 each year, each county board shall report to the Interagency Commission on the board’s compliance with the preventative maintenance schedules adopted under this subsection.

The information reported in accordance with paragraph (2) of this subsection shall be entered into the Integrated Master Facility Asset Library.

Cooperate with the Interagency Commission in the development of uniform mapping standards; and

Contribute data as requested by the Interagency Commission.

The Interagency Commission shall establish a process to allow a school system to obtain a waiver from complying with subsection (c) of this section.

The waiver process shall:

Address the purchasing, conservation, and efficiency of energy for the school district;

Provide for the monitoring and reporting of:

Include current and historical data on the school district’s energy use by square foot.

Posted on the school district’s website; and

Updated every 3 years.

The amount of electricity from renewable energy sources that the school district used;

The percentage of the school district’s annual electricity use that is from renewable energy sources; and

The school district’s overall electricity use by:

In this section the following words have the meanings indicated.

“Program” means the Capital Grant Program for Local School Systems With Significant Enrollment Growth or Relocatable Classrooms.

“Significant enrollment growth” means full–time equivalent enrollment growth in a local school system that has exceeded 150% of the statewide average over the past 5 years.

“Significant number of relocatable classrooms” means an average of more than 250 relocatable classrooms in a local school system over the past 5 years.

There is a Capital Grant Program for Local School Systems With Significant Enrollment Growth or Relocatable Classrooms.

The purpose of the Program is to provide grants for public school construction in local school systems that are experiencing significant enrollment growth or a significant number of relocatable classrooms.

The Program shall be implemented and administered by the Interagency Commission on School Construction in accordance with this section.

Grants awarded by the Interagency Commission under the Program shall be matched by local funds equal to the required local cost–share established in accordance with § 5–303(d)(3) of this subtitle.

Provide grants from State funds dedicated for the Program to county boards for public school construction in local school systems that are experiencing significant enrollment growth or a significant number of relocatable classrooms;

Develop a procedure for a county board to apply for a grant under the Program;

Develop eligibility requirements for a county board to receive a grant under the Program, including a requirement for a county board to provide funds to match a grant award;

For the first $40,000,000 of grants, develop a process to allocate grant awards under the Program that allocate funds based on each eligible county board’s proportionate share of the total full–time equivalent enrollment of the county boards that are eligible to participate in the Program; and

After the allocation of grants under item (4) of this subsection, for the remaining grants, develop a process to allocate grant awards under the Program that allocates funds based on each eligible county board’s proportionate share of percentage of enrollment growth above the statewide average percentage.

In fiscal year 2016, $20,000,000;

In each of fiscal years 2017 through 2026, $40,000,000; and

In fiscal year 2027 and each fiscal year thereafter, $80,000,000.

Notwithstanding § 2–303(f) of this article, the process for the review and approval of public school construction projects shall be in accordance with the provisions of this section.

This section applies only to construction projects and systemic renovation projects that cost more than $1,250,000 and:

At least once every 4 years, the Interagency Commission shall review the cost threshold amount under paragraph (2) of this subsection.

Except as provided in subsection (e) of this section, educational specifications and schematic designs for applicable construction projects that will affect the plan configuration of student–occupied spaces in a school building or on its grounds are required to:

To provide efficiency within the process, the Department and the Interagency Commission shall consider altering the review and approval process required under paragraph (1) of this subsection, including a rolling deadline for submission of documents, with schematic designs submitted following the completion of the educational specifications review.

Change orders for applicable construction projects and systemic renovation projects may not be:

A percentage of the State allocation related to change orders may not be withheld.

Local education agencies shall maintain contingency funds for each approved project to address unanticipated construction costs above the State allocation.

Except as provided in subsection (e) of this section, design and construction documents for applicable construction projects and systemic renovation projects are required to be:

The Department of General Services and the Interagency Commission, in consultation with local education agencies, shall develop a timeline for submission, review, and approval of design and construction documents.

The provisions of subsections (b) and (d) of this section and § 5–310(h) of this subtitle do not apply to a local education agency that successfully completes a certification process that meets the requirements of this subsection.

Subject to the review and approval of the Interagency Commission, the Department of General Services shall develop a certification process through which a local education agency is able to demonstrate the expertise and capacity to complete the review of educational specifications, schematic designs, design and construction documents, or preventative maintenance schedule compliance within the county.

The certification process developed by the Department of General Services shall provide for a renewable, 5–year certification for a local education agency that successfully completes the certification process.

There is a School Safety Grant Program.

The purpose of the Program is to provide grants to county boards for school security improvements, including:

Provide grants to county boards for public school security improvements;

Develop a procedure for a county board to apply for a grant under the Program; and

Develop eligibility requirements for a county board to receive a grant under the Program.

There is a solar energy pilot program to promote the use of solar energy systems to generate electricity in public school buildings in the State.

The pilot program shall be implemented and administered by the Interagency Commission and shall operate as provided in this section.

Encourage all local boards in the State to study, design, and construct or renovate school buildings that are energy efficient and use solar energy systems to generate electricity to meet some of the school building’s electrical energy needs, electrical energy demand, or a combination of the electrical energy needs and electrical energy demand;

Provide grants out of State funds dedicated for this program to local boards to assist in implementing the use of solar energy systems at existing public schools or in new or renovated school building projects; and

Develop a procedure for a local board to apply for a grant in accordance with subsection (c) of this section.

A local board may apply to the Interagency Commission for a grant to cover 90% of the cost to purchase and install a solar energy system to generate a portion of the school building’s electrical energy needs or electrical energy demand.

A local board that receives a grant under this subsection shall pay:

The Interagency Commission may award a grant under this section for a solar energy system project.

The Interagency Commission and the Maryland Energy Administration shall cooperate with, assist, provide technical assistance to, and advise school systems to identify appropriate existing public school buildings and public school construction projects that would benefit from the installation of solar energy systems.

The Interagency Commission shall adopt procedures necessary to implement this section.

An evaluation of the use of solar technologies, including photovoltaic or solar water heating, based on life cycle costs; and

If an evaluation determines that solar technologies are not appropriate for a construction or major renovation project, a report that explains why the use of the technology is not appropriate.

For the purposes of this section, replacement cost shall be determined by the product of the area of a building that is over 40 years old times the current cost per square foot of building construction which may not include:

All existing area that is not at least 40 years old shall be excluded from this calculation.

Justified as to need and continued purpose; and

Included in an annual capital improvement program that has been approved by the Interagency Commission.

Income tax;

Tax on racing;

Recordation tax;

Tax on amusements;

License tax; and

School building construction aid program under § 5–303(c) of this subtitle, provided that money may not be deducted for any general public school construction loans that no longer require repayment by the county under § 5–303(c) of this subtitle.

The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.

The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

Money appropriated in the State budget to the Fund;

Any interest earnings of the Fund; and

Any other money from any other source accepted for the benefit of the Fund.

The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

Any interest earnings of the Fund shall be credited to the Fund.

Except as provided in paragraph (4) of this subsection and subject to paragraphs (2) and (3) of this subsection, the Interagency Commission on School Construction shall establish application procedures for school systems to request funds under this section.

The Interagency Commission on School Construction shall establish award procedures to make awards distributed from the Fund not more than 45 days after receiving an application.

In fiscal year 2006 and in each fiscal year thereafter, the State shall distribute grants from an appropriation in the State budget or general obligation bonds to county boards under the Aging Schools Program administered by the Interagency Commission on School Construction in amounts equal to the funding level calculated under paragraph (2) of this subsection.

In fiscal year 2013 and in each fiscal year thereafter, the funding level for a county is the following amounts for the following counties:

The cost and efficiency, based on a 50–year period, of using available alternative energy systems, including geothermal, solar, wind, and energy storage compared to a traditional energy system;

An energy consumption and systems replacement, based on a 50–year period, of each major piece of equipment in any of the following systems serving the public school building:

The impact of innovative building design and materials on energy consumption, including white roofs and green roofs.

Except as provided in paragraph (2) of this subsection, beginning in fiscal year 2028, the purpose of the Fund is to provide State funds to address the facility needs of the highest priority schools in the State as identified by the statewide facilities assessment completed by the Interagency Commission on School Construction under § 5–310(e) of this subtitle, with highest priority given to schools with a severe facility issue that required the school to be closed in the current school year or the previous school year.

In fiscal year 2027, or if the statewide facilities assessment is not completed, the purpose of the Fund is to provide State funds to address the severity of issues in a school, including:

The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.

The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

Money appropriated in the State budget to the Fund;

Any interest earnings of the Fund; and

Any other money from any other source accepted for the benefit of the Fund.

The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

Any interest earnings of the Fund shall be credited to the Fund.

In this section the following words have the meanings indicated.

“Baseline total cost of ownership” means the typical total cost of ownership of a new school building or a school facility renewal, as calculated by the Interagency Commission.

“Estimated total cost of ownership” means the total cost of ownership of a new school building or a school facility renewal and the concomitant analysis as estimated by a local education agency before the construction of a new school building or a school facility renewal begins.

“School facility renewal” means a capital improvement project for an existing school that, on completion:

“State share percentage” means the percentage of eligible costs, as defined in regulations adopted in accordance with § 5–303 of this subtitle, for the construction of a new school building or a school facility renewal paid for by the State.

Subject to paragraph (2) of this subsection, if a project has a projected actual total cost of ownership as constructed that is not at least 15% less than the baseline total cost of ownership, the county that received a 5 percentage point increase in the State share percentage for that project shall repay that amount to the Interagency Commission.

The Interagency Commission shall establish a process for a county to repay the Interagency Commission the amount of the 5% increase in the State share percentage of a project that met the requirements under subsection (b) of this section, if approximately 12 to 17 months after the date on which construction is complete and the local education agency begins using the building or renewal for its intended purpose, the projected actual total cost of ownership as constructed is not at least 15% less than the baseline total cost of ownership.

In this section, “waste disposal infrastructure” means a physical waste disposal line located where food is distributed that allows a student to efficiently and properly dispose of waste at the end of a meal.

“Waste disposal infrastructure” includes:

In this section the following words have the meanings indicated.

“High–density county” means one of the following jurisdictions:

“Low–density county” means any county not listed in paragraph (2) of this subsection.

A county board in a high–density county seeking State funds for the construction of a new school, or the renovation of or an addition to an existing school that would increase the capacity of the school by more than 100 students, shall submit a pedestrian safety plan to the Interagency Commission.

A county board in a low–density county shall submit a pedestrian safety plan to the Interagency Commission if the county board is seeking State funds for the construction of a new school, or the renovation of or an addition to an existing school, in a city with more than 10,000 residents and the construction or renovation would increase the capacity of the school by more than 100 students.

The Interagency Commission shall approve a pedestrian safety plan if the pedestrian safety plan complies with subsection (c) of this section.

A pedestrian safety plan shall:

A county board, not the Interagency Commission, shall make all determinations about the contents of a pedestrian safety plan.

If the capital budget approved by the Howard County Board of Education has differences from the Howard County Superintendent of Schools’ proposed capital budget, the Howard County Board of Education shall publish a report on the Howard County public school system’s website within 30 days that includes:

The Howard County Board of Education shall submit the report required under paragraph (1) of this subsection to the General Assembly, in accordance with § 2–1257 of the State Government Article.

If the Howard County Superintendent of Schools’ proposed capital improvement program has differences from the capital improvement program approved by the Howard County Board of Education in the immediately preceding year, the Howard County Superintendent shall publish a report on the Howard County public school system’s website within 30 days that includes:

The Howard County Superintendent of Schools shall submit the report required under paragraph (1) of this subsection to the General Assembly, in accordance with § 2–1257 of the State Government Article.

There is a Nonpublic Special Education School Renovation Program.

The purpose of the Program is to provide grants to nonpublic special education schools for:

An eligible nonpublic special education school may apply to the Interagency Commission to receive a grant under the Program.

A nonpublic special education school is eligible for the Program if the school:

Projects addressing student health or safety concerns;

Projects necessary to comply with standards set by the Department; and

Nonpublic special education schools with a high percentage of students who are residents of the State.