For fiscal years 2024 through 2028, the Governor shall include in the annual State budget an appropriation of $500,000 from the Transportation Trust Fund for the operation of the replica sailing vessel known as the Pride of Baltimore II. On or before December 1, 2023, and on or before December 1 each year thereafter, any person or entity receiving funds under this section shall submit a report to the Department and, in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee and the House Appropriations Committee that includes: An accounting of how the funds were expended, supported by properly executed records, receipts, vouchers, invoices, and contracts that evidence the nature of the expenditures; An itinerary and any other information that demonstrates that the Pride of Baltimore II was operated solely for the purposes of promoting historical maritime education, fostering economic development and tourism, and representing the citizens of Maryland in every port visited; and A strategic business plan that includes: A goal to decrease or eliminate the need for State funds; An annual operating budget and plan for the current year and the following year; and To the extent practicable, the itinerary of the Pride of Baltimore II.

In this section, “bus rapid transit system” means a bus line that operates on at least some portion of roadway dedicated to buses and offers off–board fare collection or another form of high efficiency fare collection if a fare is charged. Beginning in fiscal year 2027 and each fiscal year thereafter, the Department shall award a grant to: Montgomery County equal to $27,000,000; and Howard County equal to $2,000,000. Montgomery County and Howard County may use the grant funds for the: Financing and refinancing of the costs related to the design, construction, acquisition, improvement, equipping, rehabilitation, and expansion of bus rapid transit system projects and other necessary facilities, equipment, and infrastructure for bus rapid transit system projects; Payment of debt service on bonds issued to finance bus rapid transit system projects; Payment of all reasonable expenses and charges related to bond issuance and borrowing; and Payment of costs relating to the management and operation of bus rapid transit system projects. If Montgomery County or Howard County uses funds under this section for the payment of debt service on bonds issued to finance bus rapid transit system projects, Montgomery County or Howard County shall issue bonds in accordance with an ordinance or resolution which may specify all matters relating to the advertisement, sale, issuance, delivery, and payment of the bonds, including: The forms, dates, and denominations of the bonds; The principal maturities; The methods to be used in determining interest payable on the bonds; and Any provisions for registration, redemption before stated maturity, or the use of facsimile signatures or seals. The Department: Shall: Develop and implement a multi–year grant agreement to administer the grant under this section which shall remain in effect until the principal of and interest on any bonds issued by Montgomery County or Howard County under this section are paid in full; and Distribute the grant under this section to Montgomery County or Howard County in a timely manner; and May not impose any additional conditions on Montgomery County or Howard County on receipt of a grant under this section.

In this section, “Fund” means the Bus Rapid Transit Fund. There is a Bus Rapid Transit Fund. The purpose of the Fund is to: Provide grants to Montgomery County or Howard County; and Make funding commitments for the issuance of bus rapid transit bonds. The Department shall administer the Fund. 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. The Fund consists of: Revenue distributed to the Fund under § 9–120(b)(1)(xi) of the State Government Article; Money appropriated in the State budget to the Fund; Interest earnings or other income earned from the investment of any money from 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.