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SB 881

Establishes provisions relating to the funding of legal actions, including foreign funding and litigation funding agreements

2026 Regular Session Introduced by Curtis Trent

Creates three MD regional transportation authorities (Baltimore, Capital, Southern Maryland) funded by regional surcharges to plan and implement regional transport projects.

Voted Do Pass S General Laws Committee
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WeVote Research Nonpartisan
Bill Summary · SB 881

SB 881 — Transportation — Regional Transportation Authorities (Maryland)

Status: Hearing 3/05 at 1:00 p.m. (Budget & Taxation)
Introduced: January 28, 2025 (Sen. Rosapepe) — assigned to Budget & Taxation and Finance

Summary

SB 881 establishes three regional transportation authorities and dedicated regional special funds to plan, finance, and implement transportation projects of regional significance in Maryland’s Baltimore, Capital, and Southern Maryland regions. The bill imposes new regional surcharges (sales/use “transportation authority” surcharge, hotel surcharge, and transfer tax surcharge) to capitalize those funds and distribute recurring revenue for projects and local governments.

Key provisions

  • Regional authorities created (each is a state instrumentality):
    • Baltimore Region Transportation Authority — Anne Arundel, Baltimore, Howard counties and Baltimore City.
    • Capital Region Transportation Authority — Frederick, Montgomery, Prince George’s counties.
    • Southern Maryland Region Transportation Authority — Calvert, Charles, St. Mary’s counties.
  • Authorities’ duties and powers:
    • Prepare and adopt a regional transportation plan and identify projects of regional significance.
    • Recommend regional priorities to State/federal agencies; allocate and (at the authority’s discretion) directly oversee funded projects.
    • Consult with MDOT, MPOs, and stakeholders; serve as regional advocate; apply for federal/state grants.
    • Exercise corporate powers: enter contracts, accept grants/loans, acquire/sell property, fix fees, and create affiliated entities.
    • Each authority must hire an executive director and may employ necessary staff and experts.
  • Funding and finance:
    • Creates three nonlapsing special funds — Baltimore Region Transportation Fund, Capital Region Transportation Fund, Southern Maryland Region Transportation Fund.
    • Fund sources: appropriations, interest/earnings, revenues from the new surcharges (sales/use transportation surcharge, hotel surcharge, transfer tax surcharge), and other gifts/grants.
    • Distribution rule in statute: of surcharge revenues attributable to a region, 70% goes to the regional transportation fund and 30% is distributed to counties and municipalities in that region (pro rata by local taxable activity or surcharge receipts).
    • Authorities may issue bonds and other obligations payable from their revenues; statute specifies such bonds are not State debt.
    • Interest earnings on the funds are credited to the funds.
  • Reporting and oversight:
    • Each authority must report annually to the General Assembly (by Jan 1) on activities.
    • Statutory cross-references added to State Finance and Tax code for revenue routing and definitions.

Fiscal and stakeholder impacts

  • Fiscal note (Department of Legislative Services):
    • Special fund revenues could increase significantly as early as FY2026 — estimated > $300 million in the first full year based on current collections.
    • Local (county/municipal) revenues could increase by > $100 million in the first full year.
    • Special fund expenditures will rise to cover authority operations and project funding beginning as early as FY2026.
    • General Fund expenditures increase ~$879,000 in FY2026 (Comptroller’s Office operations); general fund may see additional interest earnings early on.
    • Potential impacts to the Transportation Trust Fund and statewide debt-affordability metrics are noted (authorities’ bond issuance and project funding could affect statewide budgeting/debt assessments).
  • Affects: regional governments, counties and municipalities in the three regions, hotel and retail sectors (subject to surcharges), property transfer market (transfer tax surcharge), commuters and residents benefiting from projects, and small businesses (potential meaningful effects depending on surcharges and project contracting).

Procedural / timeline notes

  • The bill adds statutory routing of surcharge revenues through the Comptroller to the new regional funds.
  • Earliest fiscal impacts and authority activity could begin in FY2026 according to the fiscal analysis.
  • The bill authorizes annual reporting and ongoing fund administration; effective dates depend on final enactment language and administrative steps (bonding, surcharge implementation).

What to watch for

  • Final surcharge rates and precise mechanics (timing of implementation, carve-outs, and administrative rules) — the bill text sets structure but not all implementation details.
  • How revenues are allocated among specific projects and the interaction with MDOT, MPOs, and existing local capital plans.
  • Any amendments limiting or defining bonding authority, state fiscal exposure, or project eligibility.

Compiled from official sources — confirm details with the bill’s official record.

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