Kelly v. Marylanders for Sports Sanity, Inc.

530 A.2d 245, 310 Md. 437, 1987 Md. LEXIS 276
Court of Appeals of Maryland·Decided September 8, 1987·No. 75, September Term, 1987·Published·Cited by 37 cases

Opinion

*439 MURPHY, Chief Judge.

Article XVI of the Constitution of Maryland, entitled “The Referendum,” in § 1(a), reserves to the people the power “to have submitted to the registered voters of the State, to approve or reject at the polls, any Act, or part of any Act of the General Assembly____” Section 2 of Art. XVI limits the right of referendum, in pertinent part, as follows:

“No law making any appropriation for maintaining the State Government, or for maintaining or aiding any public institution, not exceeding the next previous appropriation for the same purpose, shall be subject to rejection or repeal under this Section.”

The primary issue in this case is whether enactments of the General Assembly in 1987 involving the Maryland Stadium Authority constitute laws “making any appropriation for maintaining the State Government.”

I.

The Maryland Stadium Authority was created by ch. 283 of the Acts of 1986, codified as Maryland Code (1986 Repl.Vol.), §§ 13-701 to -722 of the Financial Institutions Article. By this legislation, the Authority was designated as a public corporation and instrumentality of the State. For budgetary purposes, it was included as a unit of the Department of Economic and Community Development. § 13-702. The five members of the Authority, appointed by the Governor with the advice and consent of the Senate, § 13-703, were empowered to determine the location of, and construct and maintain “facilities to the extent necessary to accomplish [its] purposes.” § 13-708(6). Under § 13-701, a “facility” includes, in addition to the site, “stadiums for the primary purpose of holding professional football games, major league professional baseball games, or both, in the Baltimore metropolitan area.”

The Authority was vested with broad power to regulate the use and operation of its facilities and to charge fees *440 therefor. § 13-708(9) and (10). Subject to the approval of the Board of Public Works, the Authority was authorized to borrow money from any source for any corporate purpose and to mortgage or otherwise encumber its property. § 13-708(11). Subject to the same approval, the Authority was permitted to issue bonds in connection with its acquisition and construction of facilities, the debt service on the bonds to be payable solely from the Authority’s revenues. § 13-708(12); § 13-712. The Authority was empowered, by gift or purchase, to acquire any property needed “to construct or operate any facility.” § 13-711(a). Prior to selecting a facility site, it was required to hold a hearing for the purpose of obtaining public comment. § 13-709. It was also required, before acquiring a facility site, or before entering into a construction contract involving a facility, to submit a detailed written report to the General Assembly and Board of Public Works justifying its proposed action, including the method of funding and the economic necessity for the facility. § 13-710. Notification to the Legislative Policy Committee thirty days prior to acquiring a facility site was also required by this section. In addition, the Authority was directed to obtain prior approval both of the Board of Public Works and the General Assembly “for the acquisition of the site for the stadium” and to obtain the approval of the Board of Public Works before contracting for the acquisition of the facility site. § 13-710.

Section 13-715 created a Maryland Stadium Authority Financing Fund “as a nonlapsing revolving fund” to be used by the Authority “for carrying out the provisions of this subtitle.” The Authority was required by this section to place receipts in the Financing Fund from the sale of its bonds and from other revenues generated from other sources.

Consistent with its statutory purpose, the Authority engaged consultants to consider various sites for its contemplated sports facilities. After studying the consultants’ report, the Authority recommended an 85-acre tract in Baltimore City, known as Camden Yards, as the most *441 appropriate site. It concluded that the Camden Yards site could be acquired for 72.3 million dollars; that a baseball stadium could be erected on the site for 61.8 million dollars, and a football stadium for 67 million dollars—a total cost of 201.1 million dollars in January 1987 dollars.

On December 5, 1986, the Authority gave the requisite statutory notice of its intention to recommend the Camden Yards site for the location and construction of the sports facilities. Three bills were thereafter introduced in the 1987 session of the General Assembly as administration measures. The first, S.B. 228, which upon its enactment became ch. 122 of the Acts of 1987, was entitled “Maryland Stadium Authority—Approval of Facility Site at Camden Yards.” This bill amended § 13-709 of the Financial Institutions Article by authorizing the Authority to construct or enter into a contract for a facility on the Camden Yards site.

The second bill, S.B. 230, which upon its enactment became ch. 123 of the Acts of 1987, was entitled “Maryland Stadium Authority—Powers and Duties.” This bill also amended a number of sections relating to the Maryland Stadium Authority in the Financial Institutions Article. Specifically, the Authority was designated as an independent unit in the Executive Branch of State Government. § 13-702(e). It was authorized to acquire property in the Camden Yards site by ordinary or quick-take condemnation. The bill also amended § 13-715(c) by adding a new subparagraph (5) which specified that, in addition to other receipts of the Authority required to be deposited in its Financing Fund, “additional revenue, gift, donation, or other source [of funds] authorized by law” must also be so deposited in connection with the financing of the site acquisition and construction of the sports facilities. The Authority was required by § 13-719(5) to submit “annually a budget reflecting the operating and capital program of the Authority to the Department of Budget and Fiscal Planning for inclusion for informational purposes in the State Budget Book.” *442 The effectiveness of the bill was made contingent upon the enactment of ch. 122.

The third bill, S.B. 847, which upon its enactment became ch. 124 of the Acts of 1987, was entitled “Maryland Stadium Authority—Financing.” It amended a number of sections in the Financial Institutions Article, in the State Finance and Procurement Article, and in the State Government Article of the Code. By its preamble, this bill recited the intention of the General Assembly that, to the maximum extent economically justifiable, the Authority “finance the construction of the facility with private, rather than public, investment”; and that the Authority solicit and evaluate proposals from private investors for financing such structures, thereby “to minimize the use of State lottery and other revenues and the risk to the State’s revenue base and credit ratings.”

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Kelly v. Marylanders for Sports Sanity, Inc., 530 A.2d 245, 310 Md. 437, 1987 Md. LEXIS 276 (Md. 1987).

530 A.2d 245 (Kelly v. Marylanders for Sports Sanity, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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