In this subtitle the following words have the meanings indicated. “County” does not include Baltimore City. “Debt service” means the amount annually needed to pay the maturing principal of and interest on bonds, notes, and other evidences of obligation and to meet sinking fund requirements for these purposes. “Eligible municipality” means a municipality authorized by law to construct or maintain streets or roads. “Highway user revenues” means the capital grants appropriated to Baltimore City, counties, and municipalities under § 8–403(b) of this subtitle. “Municipality” means any municipal corporation, special taxing district, or other political subdivision of this State other than a county or Baltimore City.

There is a Gasoline and Motor Vehicle Revenue Account in the Transportation Trust Fund. All revenues collected from the following, after deductions provided by law, shall be credited to the Gasoline and Motor Vehicle Revenue Account: All of the motor vehicle fuel tax; Except as otherwise provided by law, two–thirds of the revenue from the vehicle titling tax, excluding revenue attributable to: A vehicle titling tax rate in excess of 6%; or The vehicle titling tax imposed on rental vehicles under § 13–809(c)(1)(ii) of this article; Except for revenues collected under Title 13, Subtitle 9, Parts III and IV of this article, vehicle registration fees; The revenue disbursed to this Account under § 2–614 of the Tax – General Article; and 80% of the funds distributed on short–term vehicle rentals under § 2–1302.1 of the Tax – General Article to the Transportation Trust Fund from the sales and use tax. For fiscal year 2020 and each fiscal year thereafter, revenue credited to the Account shall be used as provided in § 3–216 of this article.

Subject to subsection (c) of this section, for fiscal years 2020 through 2023, capital grants shall be appropriated from the Transportation Trust Fund as provided in § 3–216 of this article based on the following calculations: An amount equal to 8.3% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to Baltimore City; An amount equal to 3.2% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as provided in § 8–404 of this subtitle; and An amount equal to 2.0% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the municipalities to be distributed as provided in § 8–405 of this subtitle. Subject to subsection (c) of this section, capital grants shall be appropriated from the Transportation Trust Fund as provided in § 3–216 of this article based on the following calculations: For fiscal year 2024: An amount equal to 9.5% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to Baltimore City; An amount equal to 3.7% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as provided in § 8–404 of this subtitle; and An amount equal to 2.4% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the municipalities to be distributed as provided in § 8–405 of this subtitle; For fiscal year 2025: An amount equal to 11% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to Baltimore City; An amount equal to 4.3% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as provided in § 8–404 of this subtitle; and An amount equal to 2.7% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the municipalities to be distributed as provided in § 8–405 of this subtitle; For fiscal year 2026: An amount equal to 12.2% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to Baltimore City; An amount equal to 4.8% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as provided in § 8–404 of this subtitle; and An amount equal to 3.0% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the municipalities to be distributed as provided in § 8–405 of this subtitle; For fiscal year 2027: An amount equal to 12.2% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to Baltimore City; An amount equal to 4.8% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as provided in § 8–404 of this subtitle; and An amount equal to 3.0% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the municipalities to be distributed as provided in § 8–405 of this subtitle; and For fiscal year 2028 and each fiscal year thereafter: An amount equal to 9.5% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to Baltimore City; An amount equal to 3.7% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the counties to be distributed as provided in § 8–404 of this subtitle; and An amount equal to 2.4% of funds credited to the Gasoline and Motor Vehicle Revenue Account shall be appropriated to the municipalities to be distributed as provided in § 8–405 of this subtitle. The capital grants made under this subtitle shall be appropriated only if all debt service requirements and departmental operating expenses have been funded and sufficient funds are available to fund the capital program.

Highway user revenues shall be allocated to the counties: One half on a county road mileage basis, as provided in subsection (b)(1) of this section; and One half on a motor vehicle registration basis, as provided in subsection (b)(2) of this section. The Administration shall allocate for the account of each county, out of the highway user revenues to be distributed to the counties under § 8–403 of this subtitle, the county’s share, to be determined by adding: The amount that results from applying to one half of these highway user revenues the ratio that, as of December 1 of the preceding calendar year, the total mileage of county roads in the county, not including the total mileage of county roads in eligible municipalities in the county, bears to the total mileage of county roads in all of the counties, not including the total mileage of county roads in eligible municipalities in the State; and The amount that results from applying to one half of these highway user revenues the ratio that, as of December 1 of the preceding calendar year, the total number of motor vehicles registered to owners having addresses in the county, not including motor vehicles registered to owners having addresses in eligible municipalities in the county, bears to the total number of motor vehicles registered to owners in all the counties, not including motor vehicles registered to owners having addresses in eligible municipalities in the State.

An eligible municipality may request its share of the highway user revenues provided under this subtitle from the Administration. The request shall be made in writing at least 6 months before the start of the fiscal year in which the funds are desired. Highway user revenues shall be allocated to the eligible municipalities: One half on a municipal road mileage basis, as provided in subsection (c)(1) of this section; and One half on a motor vehicle registration basis, as provided in subsection (c)(2) of this section. The Administration shall allocate for the account of each eligible municipality, out of the highway user revenues to be distributed to the municipalities under § 8–403 of this subtitle the eligible municipality’s share, to be determined by adding: The amount that results from applying to one half of the available revenues the ratio that, as of December 1 of the preceding calendar year, the total mileage of county roads in the eligible municipality bears to the total mileage of county roads located in eligible municipalities in the State; and The amount that results from applying to one half of the available revenues the ratio that, as of December 1 of the preceding calendar year, the total number of motor vehicles registered to owners having addresses in the eligible municipality bears to the total number of motor vehicles registered to owners having addresses in eligible municipalities in the State. For purposes of the mileage formula distributions under this section, each special improvement district in Prince George’s County in existence in January, 1953, shall be treated as a municipality, but the amounts distributed shall be: Paid to the county and retained by it as credits to the district; and Applied to the cost of maintaining the streets and roads in the district so long as the district has any indebtedness.

A distribution of highway user revenues may not be made to any county, municipality, or Baltimore City unless the local government in its current fiscal year certifies to the Administration that revenues will be used in compliance with all applicable laws. If any highway user revenues otherwise distributable under this subtitle are not distributed by the close of the fiscal year of the county, municipality, or Baltimore City because the local government failed to make the required certification, these highway user revenues shall revert to the Transportation Trust Fund. The county governments and other local authorities are relieved from the requirements of existing local law for levying a minimum amount or rate for road maintenance, and the portions of all public local laws making any such requirement are suspended. The Secretary of the Department of Transportation may reduce highway user revenues to each appropriate local governing body in the following fiscal year by the specific amount of the cost necessary to correct individual instances of noncompliance concerning State standards of uniformity for traffic control devices.

If a county’s or municipality’s road construction, reconstruction, or maintenance is performed by the Administration, the county’s or municipality’s share of highway user revenues shall be credited to the account of the Administration to be spent on warrants of the State Comptroller. If a county has paid any debt service on bonds or other evidences of obligation issued by a municipality in the county for the construction, reconstruction, or maintenance of roads or streets, an amount sufficient to reimburse the county for these payments shall be paid to the county from the municipality’s share of highway user revenues. In all other cases, a county’s or municipality’s share of highway user revenues shall be paid to or on the order of: The proper official of the county or municipality designated by local law; or If no designation is made, the county or municipality. Payments of a county’s or municipality’s share of highway user revenues shall be made: At monthly intervals; or At other appropriate times reasonably requested.

Highway user revenues distributed to Baltimore City and Kent County may be used only to pay or finance: Costs incurred in the construction, reconstruction, or maintenance of its highways and streets; As to Baltimore City, costs incurred for carrying out traffic functions and enforcing the traffic laws; and As to Kent County, costs incurred by its police department for carrying out traffic functions and enforcing the traffic laws; Costs incurred in its other highway related activities for: Lighting the highways; Stormwater drainage of the highways; and Street cleaning, but not including the cost of collection of garbage, trash, and refuse; The payment of its debt service on bonds or other evidences of obligation for: The construction, reconstruction, or maintenance of its highways and streets; and Any other of its highway activities, including lighting the highways and providing stormwater drainage; The cost of transportation facilities, as defined in § 3–101 of this article; or As to Kent County: The cost of maintaining county owned boat landings; and Costs incurred in providing traffic crossing guards. The net share of highway user revenues distributed for a county other than Kent County may be used only: First, to pay debt service on outstanding bonds or other evidences of obligation issued before June 1, 1947, by or for the county or any municipality in the county to finance construction, reconstruction, or maintenance of roads or streets, to the extent that gasoline tax revenues have been lawfully dedicated, pledged, or otherwise committed to that debt service, so that the dedication, pledge, or commitment remains unimpaired and continues as a charge against the county’s share of the gasoline tax to the same extent that it was a charge against any gasoline tax revenues under prior laws; and Then, as to the remainder of the county’s share, to pay or finance: The cost of transportation facilities, as defined in § 3–101 of this article; For Talbot County, maintenance of private roads as authorized in § 12–539 of the Local Government Article; The construction, reconstruction, or maintenance of county roads; and Debt service on bonds or other evidences of obligation that, for the construction, reconstruction, or maintenance of county roads, are lawfully issued on or after June 1, 1947, by or for the county or by or for a municipality in the county that is not receiving its own share under § 8–407 of this subtitle. The net share of highway user revenues distributed for a municipality may be used only to pay or finance: The cost of transportation facilities, as defined in § 3–101 of this article; The construction, reconstruction, or maintenance of roads or streets; and Debt service on bonds or other evidences of obligation lawfully issued by or for the municipality for the construction, reconstruction, or maintenance of roads or streets.

It is the policy of this State that bicycle trails are important and their construction is encouraged wherever feasible. To establish and maintain footpaths, bridle paths or horse trails, and bicycle trails: Baltimore City, any county, or any municipality that receives highway user revenues may spend a reasonable part of its net share for these purposes; and The Administration, Baltimore City, any county, or any municipality that receives highway user revenues may credit a part of them to a financial reserve or a special fund to be used within 10 years for these purposes. Highway user revenues may not be used for footpaths, bridle paths or horse trails, or bicycle trails if: Their establishment would be contrary to public safety; Their cost would be too great considering their need or probable use; or The sparseness of population, the existence of other available ways, or other factors show that there is no need for them. If requested by a local government, the Administration shall provide technical assistance and advice on carrying out the purposes of this section. The Administration shall recommend construction standards for footpaths, bridle paths or horse trails, and bicycle trails and shall establish a uniform system of signs for all the footpaths, bridle paths or horse trails, and bicycle trails constructed under this section, whether construction is undertaken by the Administration or by the local government. Unless the Administration or local government specifically approves other uses, as provided in subsection (g) of this section, footpaths and bicycle trails may be used only by: Pedestrians; Nonmotorized vehicles; Electric personal assistive mobility devices, as defined in § 21–101(j) of this article; and Personal delivery devices, as defined in § 21–104.5 of this article. Unless the Administration or local government specifically approves other uses, as provided in subsection (g) of this section, bridle paths or horse trails may be used only by pedestrians, horses, or horse drawn vehicles. If the Administration or local government specifically approves the use of footpaths and bicycle trails by other than pedestrians and nonmotorized vehicles, or of bridle paths or horse trails by other than pedestrians, horses, or horse drawn vehicles, the Administration or local government shall post signs on the paths or trails indicating the uses specifically approved. A person may not operate a moped on a footpath, bicycle trail, bridle path, or horse trail unless the path or trail is posted with signs in accordance with subsection (g) of this section specifically approving the use of mopeds. Notwithstanding the provisions of this subsection, the use of footpaths and bicycle trails shall be denied to sports cycles, trail bikes, and minibikes.

A road or street may not be constructed or reconstructed by a county or municipality under § 8-408 of this subtitle unless the Administration first has approved the proposed location, plans, and specifications for the construction or reconstruction. Approval shall be granted if, in the Administration’s judgment, the road or street, when constructed or reconstructed, will be reasonably adequate and appropriate to an existing or potential integrated secondary highway system.

The purpose of this section is to enable the Administration to make the computations required by this subtitle. On or before December 31 of each year, each municipality that has requested its share of highway user revenues and each county shall make a report to the Administration in the form that it requires. This report shall show the mileage of county roads added to or removed from the county road system in the county or municipality during the 12 months ending on December 1 of that year. The Motor Vehicle Administration and each county shall give the Administration any other information that the Administration requires for purposes of this subtitle.

On or before January 1 of each year, Baltimore City, each county, and each eligible municipality that received highway user revenues in the preceding fiscal year shall submit to the Administration an accounting report that: Shows the actual costs of the preceding fiscal year; Shows the expenditure budget of the current fiscal year; As to items (i) and (ii) of this paragraph, accurately identifies the costs for specific projects authorized in § 8–408 or § 8–409 of this subtitle; Shows the amount of funds diverted from the general fund of the county or municipality to pay for specific projects authorized in § 8–408 or § 8–409 of this subtitle during the preceding fiscal year; and Lists specific projects authorized in § 8–408 or § 8–409 of this subtitle that have been delayed due to a lack of funding. On or before December 1 of each year, the Administration shall provide Baltimore City, each county, and each eligible municipality with an electronic copy of an accounting report form to be used to submit the information reported under paragraph (1) of this subsection. The Administration shall compile, summarize, and analyze the information reported by Baltimore City and each county and municipality under subsection (a)(1) of this section in a single report that the Administration shall submit, on or before February 1 of each year, to the Governor and, in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the House Appropriations Committee, the House Environment and Transportation Committee, and the House Ways and Means Committee. The Administration may not make a disbursement of highway user revenues under § 8–407 of this subtitle to any jurisdiction that has not submitted a report to the Administration as required under subsection (a)(1) of this section.

Within 45 days after the end of each month, the Administration shall send to each county and Baltimore City a statement that shows, segregated according to the classifications adopted for its records: The expenditures made from the highway user revenue funds allocated for each of the counties and Baltimore City and held by the Administration; The purposes for which the expenditures were made, such as for construction, reconstruction, or maintenance of county or Baltimore City roads or for debt service; The total receipts credited in each month; The disbursements from the Account; The balance remaining to the credit of the county or Baltimore City at the end of each month; and The amount, if any, of this balance that is encumbered and for what purpose.