§ 10-650

(a) (1) Except as provided in paragraphs (2), (3), and (4) of this subsection, the Interagency Commission on School Construction shall, on a rolling basis, approve public school facility projects to be funded from the Supplemental Public School Construction Financing Fund and the Supplemental Public School Construction Facilities Fund.

(2) The first projects funded from the Supplemental Public School Construction Financing Fund and the Supplemental Public School Construction Facilities Fund shall be projects that the Interagency Commission on School Construction has deemed eligible for funding but State funding for the projects has been deferred due to fiscal constraints.

(3) The Interagency Commission on School Construction may not approve a public school facility project that would reimburse a county for a public school facility that has been completed.

(4) (i) Subject to the approval of the Authority, the Interagency Commission on School Construction shall approve expenditures for eligible costs to be reimbursed for a public school facility that begins construction on or after June 1, 2020.

(ii) Eligible costs in subparagraph (i) of this paragraph include items eligible for State funding as provided in subsection (c) of this section.

(b) (1) Subject to paragraph (2) of this subsection, and except as provided in paragraph (3) of this subsection, a percentage of the proceeds of the bonds authorized under § 10–628 of this subtitle shall be allocated to projects approved by the Interagency Commission on School Construction in the following amounts:

(i) Anne Arundel County – 12.5%;

(ii) Baltimore City – 21.0%;

(iii) Baltimore County – 21.0%;

(iv) Frederick County – 5.1%;

(v) Howard County – 6.6%;

(vi) Montgomery County – 21.0%; and

(vii) all other counties – 11.5%.

(2) (i) Subject to subparagraph (ii) of this paragraph, a percentage of the bond proceeds specified for Baltimore City under paragraph (1) of this subsection shall be used to provide an amount equal to not more than 6% of the total allocation for Baltimore City for a project at a school within an area designated for grant funding through the CHOICE Neighborhood Program administered by the Department of Housing and Urban Development and coordinated locally by the Housing Authority of Baltimore City.

(ii) The allocation required under subparagraph (i) of this paragraph may be provided only if the Mayor and City Council of Baltimore City secure at least $30,000,000 in additional revenues for the project.

(3) For Prince George’s County, the county’s share of the additional school construction allocation will be provided through the public–private partnership agreement entered into and approved in accordance with § 4–126.1 of the Education Article.

(4) Any allocations not utilized by a county or county board of education within 10 years after the allocation shall be subject to reallocation.

(5) State funds from other sources, grants, or programs may be used in combination with funds provided under this section for a project.

(c) (1) Except as otherwise provided in paragraphs (2) through (4) of this subsection, the allocation of bond proceeds authorized in § 10–628 of this subtitle represents the State share of eligible public school construction or capital improvement costs as established by regulation in accordance with § 5–303 of the Education Article, which shall include architectural, engineering, consulting, and other planning costs as eligible costs.

(2) For a county that receives the minimum State share of eligible school construction costs and has advanced construction funding for projects in the Public School Construction Program that the Interagency Commission on School Construction has approved for planning, the State share of eligible costs for the allocation of bond proceeds authorized in § 10–628 of this subtitle shall include 150% of the applicable gross area baseline in gross square foot per student for each project.

(3) In Baltimore City, the bond proceeds authorized under § 10–628 of this subtitle may be used for furniture, fixtures, equipment, design, and the staff necessary to manage the school construction projects.

(4) A county may use a loan from the School Construction Revolving Loan Fund established under § 5–315 of the Education Article to represent the State or local share of eligible public school construction or capital improvement costs.

(5) The State share of eligible costs for projects shall be 100% if:

(i) the project is located in a county for which the State share for school construction projects in fiscal year 2025 is below 55% and has not more than 60,000 full–time equivalent enrollment in fall 2023, as defined in § 5–201 of the Education Article;

(ii) the allocation under subsection (b) of this section is to be used for a public high school that has the highest rate of students eligible for free and reduced price meals as compared to other public high schools in the same county;

(iii) the project is classified as a major renovation; and

(iv) the planning and design for the project occurs in fiscal year 2025 or 2026.

(d) (1) Except as agreed to in the project memorandum of understanding under this section, the Authority shall contract for, manage, and oversee public school facility projects funded from the Supplemental Public School Construction Financing Fund and the Supplemental Public School Construction Facilities Fund.

(2) In Baltimore City, the Authority shall contract for, manage, and oversee public school facility projects funded from the Supplemental Public School Construction Financing Fund and the Supplemental Public School Construction Facilities Fund.

(3) If a county board of education contracts for, manages, and oversees a public school facility project funded from the Supplemental Public School Construction Financing Fund and the Supplemental Public School Construction Facilities Fund, the public school facility project shall be subject to the same requirements and procedures that govern the Public School Construction Program.

(e) (1) Before a public school facility project is approved for funding from the Supplemental Public School Construction Financing Fund or the Supplemental Public School Construction Facilities Fund, the Authority and the Interagency Commission on School Construction shall enter into a program memorandum of understanding.

(2) Except as provided under paragraph (3) of this subsection, the program memorandum of understanding under paragraph (1) of this subsection shall:

(i) provide for the Authority’s right to assume a project undertaken under certain circumstances;

(ii) provide, generally, for the order and control of all funding for public school facility construction projects under this subtitle;

(iii) authorize the Authority to make final decisions involving disputes that may impact any Authority obligations under this subtitle; and

(iv) 1. authorize the Authority to review and approve project budgets; or

2. authorize the Authority to review and comment on project budgets, if a public school facility project funded from the Supplemental Public School Construction Financing Fund or the Supplemental Public School Construction Facilities Fund is being contracted for, managed, or overseen by a county and a county board of education.

(3) If the county board of education contracts for, manages, and oversees public school facility projects funded from the Supplemental Public School Construction Financing Fund and the Supplemental Public School Construction Facilities Fund, the program memorandum of understanding may not include the provisions under paragraph (2)(i) and (iv)1 of this subsection.

(f) (1) (i) Subject to paragraph (2) of this subsection, before a public school facility project is approved for funding from the Supplemental Public School Construction Financing Fund or the Supplemental Public School Construction Facilities Fund, the Authority, the county government, and the county board of education shall enter into a project memorandum of understanding for a public school facility.

(ii) The project memorandum of understanding required under subparagraph (i) of this paragraph shall:

1. be subject to the applicable terms and conditions set forth in the program memorandum of understanding under subsection (e)(2) of this section;

2. identify specific parameters regarding the roles and responsibilities of each party with respect to budget review and approval, procurement, design, schedule, construction administration, and contract compliance and reporting;

3. reserve the right of the Authority to assume a project under certain circumstances;

4. include a provision that the State and local cost–share for the county established in regulations shall apply to a county public school facility approved for funding from the Supplemental Public School Construction Financing Fund or the Supplemental Public School Construction Facilities Fund;

5. require the county and county board of education to give priority in funding projects to schools:

A. that are the oldest buildings in the school system with significant facility deficiencies;

B. with high concentrations of students eligible for free or reduced price meals;

C. with a high number of relocatable classrooms;

D. with a high utilization based on the school’s State rated capacity; or

E. with space needs for full–day prekindergarten or career and technical education programs; and

6. include a comprehensive plan for local hiring and a plan to maximize the utilization of State–certified locally based minority and women–owned businesses for projects approved for funding.

(2) For Baltimore City, if a provision of the memorandum of understanding entered into in accordance with § 10–646 of this subtitle conflicts with a provision of the project memorandum of understanding under this subsection, the provision of the memorandum of understanding in § 10–646 of this subtitle shall prevail.

(3) (i) 1. Except as provided in subparagraph (ii) of this paragraph, the Authority may authorize a county board of education to contract for, manage, and oversee public school facility projects funded from the Supplemental Public School Construction Financing Fund and the Supplemental Public School Construction Facilities Fund in the project memorandum of understanding.

2. In deciding whether to authorize a county board to take certain actions under subsubparagraph 1 of this subparagraph, the Authority shall consider the county board’s:

A. track record in managing public school facility projects, including completing projects on schedule and within budget; and

B. expertise and capacity to manage the proposed public school projects.

(ii) In Baltimore City, the Authority shall contract for, manage, and oversee public school facility projects funded from the Supplemental Public School Construction Financing Fund and the Supplemental Public School Construction Facilities Fund.