EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0414*
HOUSE BILL 414
C8 2lr0142
CF 2lr0141
By: The Speaker (By Request – Administration) and Delegates Anderton, Boteler,
Buckel, Chisholm, Griffith, Hartman, Hornberger, Howard, Jacobs, Kipke,
Krebs, Long, McComas, McKay, Metzgar, Morgan, Munoz, Novotny, Otto,
Reilly, Saab, Szeliga, Thiam, and Wivell
Introduced and read first time: January 19, 2022
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Economic Development – Project Restore Program and Fund 2
FOR the purpose of establishing the Project Restore Program within the Department of 3
Housing and Community Development to provide financial incentives for small 4
businesses and commercial developers to revitalize certain vacant retail and 5
commercial space; authorizing the award of certain grants to certain businesses and 6
developers under certain circumstances; establishing the Project Restore Fund as a 7
special, nonlapsing fund in the Department; requiring interest earnings of the Fund 8
to be credited to the Fund; and generally relating to the Project Restore Program and 9
Fund. 10
BY repealing and reenacting, without amendments, 11
Article – Economic Development 12
Section 6–801(a) and (l) 13
Annotated Code of Maryland 14
(2018 Replacement Volume and 2021 Supplement) 15
BY adding to 16
Article – Housing and Community Development 17
Section 6–1101 and 6–1102 to be under the new subtitle “Subtitle 11. Project Restore18
Program and Fund” 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2021 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – State Finance and Procurement 23
Section 6–226(a)(2)(i) 24
Annotated Code of Maryland 25 2 HOUSE BILL 414
(2021 Replacement Volume) 1
BY repealing and reenacting, with amendments, 2
Article – State Finance and Procurement 3
Section 6–226(a)(2)(ii)144. and 145. 4
Annotated Code of Maryland 5
(2021 Replacement Volume) 6
BY adding to 7
Article – State Finance and Procurement 8
Section 6–226(a)(2)(ii)146. 9
Annotated Code of Maryland 10
(2021 Replacement Volume) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Economic Development 14
6–801. 15
(a) In this subtitle the following words have the meanings indicated. 16
(l) “Tier I area” means: 17
(1) a Tier I county, as defined in § 1–101 of this article; 18
(2) a county designated by the Department that is not a county described 19
in item (1) of this subsection, not to exceed three counties; or 20
(3) an opportunity zone. 21
Article – Housing and Community Development 22
SUBTITLE 11. PROJECT RESTORE PROGRAM AND FUND. 23
6–1101. 24
(A) IN THIS SECTION , “PROGRAM” MEANS THE PROJECT RESTORE 25
PROGRAM. 26
(B) THERE IS A PROJECT RESTORE PROGRAM IN THE DEPARTMENT . 27
(C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL 28
INCENTIVES FOR SMALL BUSINESSES AND COMME RCIAL DEVELOPERS TO 29
REVITALIZE VACANT RE TAIL AND COMMERCIAL SPACE. 30 HOUSE BILL 414 3
(D) EXPENDITURES FOR THE PROGRAM MAY BE MADE O NLY IN 1
ACCORDANCE WITH THE STATE BUDGET . 2
(E) SUBJECT TO THE AVAILA BILITY OF FUNDING AND IN ACCORDANCE WI TH 3
CRITERIA ESTABLISHED BY THE DEPARTMENT , THE PROGRAM SHALL PROVIDE 4
RENTAL GRANTS AND BU SINESS OPERATION GRA NTS TO ELIGIBLE BUSI NESSES. 5
(F) (1) IN ORDER TO BE ELIGIB LE FOR THE PROGRAM, A BUSINESS SHALL 6
OPEN OR EXPAND IN A RETAIL OR COMMERCIAL PROPER TY THAT HAS BEEN VAC ANT 7
FOR AT LEAST 6 CONTINUOUS MONTHS BE FORE THE LATER OF TH E DATE THAT THE 8
BUSINESS: 9
(I) OBTAINED AN OWNERSHI P INTEREST IN THE PR OPERTY; OR 10
(II) BEGAN CONSTRUCTION O R RENOVATION OF THE 11
PROPERTY. 12
(2) A BUSINESS THAT TOOK AN OW NERSHIP INTEREST IN A PROPERTY 13
OR BEGAN CONSTRUCTIO N OR RENOVATION OF A PROPERTY BEFORE JULY 1, 2021, 14
IS NOT ELIGIBLE FOR THE PROGRAM WITH RESPECT TO THAT PROPERTY . 15
(3) THE DEPARTMENT MAY EXCLUD E CERTAIN TYPES OF 16
BUSINESSES FROM ELI GIBILITY FOR THE PROGRAM. 17
(G) (1) THE PROGRAM MAY AWARD REN TAL GRANTS ONLY TO A N 18
ELIGIBLE BUSINESS WI TH 50 OR FEWER FULL –TIME EQUIVALENT EMPL OYEES. 19
(2) AN ELIGIBLE BUSINESS MAY USE RENTAL GRANT FUNDS 20
AWARDED UNDER THIS S UBSECTION TO SUPPORT THE PAYMENT OF RENT , 21
MORTGAGE , OR PROPERTY TAXES BA SED ON WHETHER THE B USINESS WILL LEASE , 22
WILL PURCHASE , OR ALREADY OWNS THE VACANT PROPERTY THAT THE BUSINESS 23
WILL OCCUPY. 24
(3) THE PROGRAM MAY AWARD AN ELIGIBLE BUSINESS A RENTAL 25
GRANT NOT EXCEEDING $2,500 FOR EACH MONTH FOR A PERIOD NOT EXCEEDING 26
12 MONTHS. 27
(H) (1) SUBJECT TO THE LIMITA TIONS OF THIS SUBSEC TION, THE 28
PROGRAM MAY AWARD A B USINESS OPERATIONS G RANT TO PROVIDE SALE S AND 29
USE TAX REBATES TO A N ELIGIBLE BUSINESS FOR THE AMOUNT OF SA LES AND USE 30
TAX COLLECTED BY THE BUS INESS AND PAID TO TH E STATE. 31
4 HOUSE BILL 414
(2) (I) AN ELIGIBLE BUSINESS MAY USE A BUSINESS O PERATIONS 1
GRANT FOR ACTIVITIES AND COSTS RELATED TO SUSTAINING AND GROWI NG THE 2
BUSINESS, INCLUDING STAFF COST S, CAPITAL IMPROVEMENTS , MARKETING, 3
INVENTORY, SUPPLIES, UTILITIES, AND TRAINING. 4
(II) AN ELIGIBLE BUSINESS MAY NOT USE A BUSINE SS 5
OPERATIONS GRANT FOR THE PAYMENT OF EXECU TIVE SALARIES OR EXE CUTIVE 6
BONUSES. 7
(3) A BUSINESS OPERATIONS GRANT MAY NOT EXCEED $250,000 8
DURING A 12–MONTH PERIOD . 9
(4) THE PROGRAM MAY AWARD A B USINESS OPERATIONS G RANT FOR: 10
(I) A PERIOD NOT EXCEEDI NG 2 YEARS FOR A BUSINESS THAT 11
IS LOCATED IN: 12
1. A TIER I AREA, AS DEFINED IN § 6–801 OF THE 13
ECONOMIC DEVELOPMENT ARTICLE; OR 14
2. A LOCATION DESIGNATE D BY THE DEPARTMENT AS A 15
MAIN STREET MARYLAND COMMUNITY; OR 16
(II) A PERIOD NOT EXCEEDI NG 1 YEAR FOR A BUSINESS THAT IS 17
NOT LOCATED IN AN AR EA DESCRIBED UNDER I TEM (I) OF THIS PARAGRAPH . 18
(I) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THE 19
PROGRAM. 20
6–1102. 21
(A) IN THIS SECTION, “FUND” MEANS THE PROJECT RESTORE FUND. 22
(B) THERE IS A PROJECT RESTORE FUND. 23
(C) THE PURPOSE OF THE FUND IS TO FUND RENTA L GRANTS AND 24
BUSINESS OPERATIONS GRANTS AWARDED UNDER THE PROJECT RESTORE 25
PROGRAM IN ACCORDANCE WITH § 6–1101 OF THIS SUBTITLE. 26
(D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 27
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 28
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 29 HOUSE BILL 414 5
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATE LY, 1
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
(F) THE FUND CONSISTS OF : 3
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 4
(2) INTEREST EARNINGS ; AND 5
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 6
THE BENEFIT OF THE FUND. 7
(G) THE FUND MAY BE USED ONLY : 8
(1) FOR THE PURPOSES DES CRIBED UNDER SUBSECT ION (C) OF THIS 9
SECTION; AND 10
(2) TO PAY THE COSTS NEC ESSARY TO ADMINISTER THE FUND. 11
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 12
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 13
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 14
THE FUND. 15
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 16
WITH THE STATE BUDGET . 17
(J) MONEY EXPENDED FROM T HE FUND IS SUPPLEMENTAL TO AND IS NOT 18
INTENDED TO TAKE THE PLACE OF FUNDING THA T OTHERWISE WOULD BE 19
APPROPRIATED FOR BUS INESS–RELATED GRANTS . 20
Article – State Finance and Procurement 21
6–226. 22
(a) (2) (i) Notwithstanding any other provision of law, and unless 23
inconsistent with a federal law, grant agreement, or other federal requirement or with the 24
terms of a gift or settlement agreement, net interest on all State money allocated by the 25
State Treasurer under this section to special funds or accounts, and otherwise entitled to 26
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 27
Fund of the State. 28
6 HOUSE BILL 414
(ii) The provisions of subparagraph (i) of this paragraph do not apply 1
to the following funds: 2
144. the Health Equity Resource Community Reserve Fund; 3
[and] 4
145. the Access to Counsel in Evictions Special Fund; AND 5
146. THE PROJECT RESTORE FUND. 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
October 1, 2022. 8