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43rd District
Legislative Bond Initiatives

What is a Legislative Bond Initiative (LBI)?

A Legislative Bond Initiative, or LBI, is a way for the state to financially support local or non-state owned capital projects which are initiated by members of the General Assembly.

Eligibility Criteria:

What you need:

From page 2 of the Guidelines for the Submission of Legislative Bond Initiative Requests to the General Assembly of Maryland

  • A Project Must Be Capital in Nature: A capital project deals with land and/or structures. Capital projects do not include items such as employee salaries, benefits, expendable equipment (i.e. automobiles), or operating costs.
     

  • A Project Must Have a Useful Life of 15 Years: Capital projects, including LBI's, must have a useful life greater than or equal to the life of the bonds sold to finance the project, which are limited by the State Constitution to 15 years. Items such as automobiles and computers do not have a useful life of 15 years. A group that is leasing land/or a structure relating to the proposed capital project must demonstrate that the lease will extend for 15 years or more.
     

  • A Project Must Serve a Public Purpose: Capital funds may be distributed to private organizations but must be used for projects with a public purpose.
     

  • Projects Funds May Not Be Used for Religious Purposes: No portion of the proceeds of a loan or any of the matching funds provided (if matching funds are required) for a project may be used (1) for the furtherance of sectarian religious instruction; or (2) in connection with the design, acquisition, construction, or equipping of any building used or to be used as a place of sectarian religious worship or instruction.

  • LBI guidelines and eligibility requirements document can be viewed here.

  • LBI application can be downloaded here.

LBI Timeline:

  • January 4, 2023 at 11:59pm: The deadline for LBI proposals to be received by the Office of Senator Mary Washington.
     

  • Mid-January to early February: The deadline for sponsors to send LBI requests to DLS to guarantee that they are prepared for the introduction deadline (27th day of the Legislative Session for Senate members)
     

  • Mid-March: Senate Budget and Taxation Committee and House Appropriations Committee may hold a joint hearing on LBIs.
     

  • Late March/Early April: Each chamber votes on LBIs. Approved LBIs are amended into he capital budget bill.
     

  • Mid-April: Both chambers vote on the final capital budget bill, including the approved LBIs.
     

  • June 1: Effective date for the capital budget bill.

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