Maryland Public Charter School Program - School Facilities - Funding, the official text

WES MOORE, Governor                  Ch. 767

Chapter 767

                   (House Bill 1430)

AN ACT concerning

Maryland Public Charter School Program – School Facilities – Funding

FOR the purpose of requiring the Interagency Commission on School Construction to
         distribute certain funds to public charter schools for the maintenance and operation
         of capital improvements to public charter school facilities, debt service, or rent or lease
         payments; requiring certain public charter schools to report to the Interagency
         Commission on School Construction on the status of certain projects; and generally
         relating to the funding of public charter school facilities in the Maryland Public
         Charter School Program.

BY adding to
         Article – Education
         Section 9–109(c)
         Annotated Code of Maryland
         (2022 Replacement Volume and 2025 Supplement)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

                   Article – Education

9–109.

        (C) (1) (I) IN THIS SUBSECTION,, “PUBLIC THE FOLLOWING WORDS
HAVE THE MEANINGS INDICATED.

                         (II) “PUBLIC “PUBLIC CHARTER SCHOOL FACILITIES” MEANS
PREMISES THAT ARE:

                         (I) 1. (I) OWNED OR LEASED BY A PUBLIC CHARTER SCHOOL;

OR

                         (II) 2. (II) OCCUPIED AND UTILIZED BY A PUBLIC CHARTER

SCHOOL TO PROVIDE A PROGRAM OF PRIMARY OR SECONDARY EDUCATION TO ITS

STUDENTS.

                         (III) “TOTAL AGGREGATE STUDENT ENROLLMENT” DOES NOT
INCLUDE STUDENT ENROLLMENT IN LOCAL SCHOOL SYSTEMS THAT:

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Ch. 767   2026 LAWS OF MARYLAND

          1. HAVE CLOSED OVER 50 SCHOOLS SINCE 2010; AND

          2. MADE SURPLUS FACILITIES AVAILABLE TO CHARTER

SCHOOLS.

                (2) (I) 1. THE SUBJECT TO SUBSUBPARAGRAPH 2 OF THIS
SUBPARAGRAPH, THE INTERAGENCY COMMISSION ON SCHOOL CONSTRUCTION

SHALL DISTRIBUTE FUNDS TO PUBLIC CHARTER SCHOOLS FOR THE MAINTENANCE
AND OPERATION OF IN ACCORDANCE WITH THIS SUBSECTION FOR CAPITAL

IMPROVEMENTS TO PUBLIC CHARTER SCHOOL FACILITIES, DEBT SERVICE, OR RENT
OR LEASE PAYMENTS.

                                 2. A PUBLIC CHARTER SCHOOL MAY RECEIVE FUNDS
UNDER THIS SUBSECTION ONLY IF THE OPERATOR’S MOST RECENT REQUIRED
CERTIFIED FINANCIAL AUDIT IS UNQUALIFIED.

                         (II) FUNDS DISBURSED UNDER SUBPARAGRAPH (I) OF THIS

PARAGRAPH SHALL BE PAID DIRECTLY TO THE PUBLIC CHARTER SCHOOL AND MAY

NOT BE PAID TO A LOCAL GOVERNING BODY OR COUNTY BOARD.

                (3) IF A PUBLIC CHARTER SCHOOL IS LOCATED IN A BUILDING OWNED
BY THE LOCAL SCHOOL SYSTEM, THE INTERAGENCY COMMISSION ON SCHOOL
CONSTRUCTION MAY NOT DISTRIBUTE FUNDS TO THE PUBLIC CHARTER SCHOOL
FOR CAPITAL IMPROVEMENTS TO THE SCHOOL FACILITY, DEBT SERVICE, OR RENT

OR LEASE PAYMENTS UNDER THIS SUBSECTION IN FISCAL YEARS DURING WHICH THE

SCHOOL FACILITY IS UNDERGOING A PROJECT THAT IS RECEIVING STATE FUNDING
THROUGH THE CAPITAL IMPROVEMENT PROGRAM.

                (4) IF THE TOTAL AMOUNT OF THE CAPITAL IMPROVEMENT PROGRAM
IN A FISCAL YEAR IS LESS THAN THE TOTAL AMOUNT IN THE PRIOR FISCAL YEAR, THE

AMOUNT OF FUNDS DISTRIBUTED TO PUBLIC CHARTER SCHOOLS UNDER THIS

SUBSECTION FOR THE FISCAL YEAR SHALL BE PROPORTIONATELY REDUCED.

                (5) THE INTERAGENCY COMMISSION ON SCHOOL CONSTRUCTION

MAY NOT USE FUNDS DISTRIBUTED TO A PUBLIC CHARTER SCHOOL UNDER THIS
SUBSECTION AS JUSTIFICATION TO REDUCE THE AMOUNT PROVIDED TO A LOCAL

SCHOOL SYSTEM THROUGH THE CAPITAL IMPROVEMENT PROGRAM.

                (6) A PUBLIC CHARTER SCHOOL THAT RECEIVES FUNDS UNDER THIS
SUBSECTION DURING A FISCAL YEAR SHALL REPORT TO THE INTERAGENCY
COMMISSION ON SCHOOL CONSTRUCTION ON THE STATUS OF ANY PROJECT FOR
CAPITAL IMPROVEMENTS TO PUBLIC CHARTER SCHOOL FACILITIES, DEBT SERVICE,

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         WES MOORE, Governor                  Ch. 767

OR RENT OR LEASE PAYMENTS BEFORE THE PUBLIC CHARTER SCHOOL MAY RECEIVE

FUNDS FOR THE FOLLOWING FISCAL YEAR.

(3) (7)  FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR

THEREAFTER, THE GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDGET BILL AN

APPROPRIATION FOR THE MAINTENANCE AND OPERATION OF CAPITAL

IMPROVEMENTS TO PUBLIC CHARTER SCHOOL FACILITIES, DEBT SERVICE, OR RENT

OR LEASE PAYMENTS THAT IS EQUAL TO THE TOTAL AGGREGATE STUDENT

ENROLLMENT IN THE MARYLAND PUBLIC CHARTER SCHOOL PROGRAM FOR THE

PRIOR FISCAL YEAR MULTIPLIED BY $1,600 $200.

(4) (8)  (I) THE INTERAGENCY COMMISSION ON SCHOOL

CONSTRUCTION SHALL ADOPT REGULATIONS TO CARRY OUT THIS SUBSECTION.

                         (II) IN THE REGULATIONS ADOPTED UNDER SUBPARAGRAPH (I)
OF THIS PARAGRAPH, THE INTERAGENCY COMMISSION ON SCHOOL CONSTRUCTION
SHALL INCLUDE REGULATIONS THAT:

                                 1. ESTABLISH THE PROCEDURES TO COMPLY WITH
PARAGRAPH (3) OF THIS SUBSECTION IF A LOCAL SCHOOL SYSTEM SUBMITS A
MID–YEAR CAPITAL PROJECT FUNDING REQUEST; AND

                                 2. ENSURE A PUBLIC CHARTER SCHOOL RECEIVES

FUNDS UNDER THIS SUBSECTION IF THE LOCAL SCHOOL SYSTEM RESCINDS A
CAPITAL PROJECT FUNDING REQUEST AND THE PUBLIC CHARTER SCHOOL IS

SUBSEQUENTLY ELIGIBLE FOR FUNDING UNDER THIS SUBSECTION.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.

Approved by the Governor, May 26, 2026.

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