LAWRENCE J. HOGAN, JR., Governor Ch. 491
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Chapter 491
(Senate Bill 310)
AN ACT concerning
Anne Arundel County and City of Annapolis – Small, Minority, and
Women–Owned Businesses Account – Local State of Emergency
FOR the purpose of expanding the eligible uses of the Small, Minority, and Women–Owned
Businesses Account to include the provision of certain grants and the conversion of
certain loan amounts into grants in areas Anne Arundel County and the City of
Annapolis when in a declared a local state of emergency; limiting the amount of
certain grants and loan amounts converted to grants that may be provided to a
certain business; establishing the Workgroup to Study the Establishment of a State
Disaster Relief Fund; and generally relating to the Small, Minority, and
Women–Owned Businesses Account.
BY repealing and reenacting, with amendments,
Article – Economic Development
Section 5–1501
Annotated Code of Maryland
(2018 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Economic Development
5–1501.
(a) There is a Small, Minority, and Women–Owned Businesses Account under the
authority of the Department.
(b) (1) (i) The Account shall receive money as required under § 9–1A–27 of
the State Government Article.
(ii) The Account shall receive money from the Strategic Energy
Investment Fund as required under § 9–20B–05 of the State Government Article.
(2) Money in the Account shall be invested and reinvested by the Treasurer
and interest and earnings shall accrue to the Account.
(3) The Comptroller shall:
(i) account for the Account; and
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(ii) on a properly approved transmittal prepared by the Department,
issue a warrant to pay out money from the Account in the manner provided under this
section.
(4) The Account is a special, nonlapsing fund that is not subject to § 7–302
of the State Finance and Procurement Article.
(5) Expenditures from the Account shall only be made on a properly
approved transmittal prepared by the Department as provided under subsection (c) of this
section.
(c) (1) In this subsection, “eligible fund manager”:
(i) means an entity that has significant financial or investment
experience, under criteria developed by the Department; and
(ii) includes an entity that the Department designates to manage
funds received under subsection (b)(1)(i) of this section.
(2) Subject to the provisions of paragraph (3) of this subsection AND
SUBSECTION (I) OF THIS SECTION , the Department shall make grants to eligible fund
managers to provide investment capital and loans to small, minority, and women–owned
businesses in the State.
(3) Except for money received from the Strategic Energy Investment Fund,
the Department shall ensure that eligible fund managers allocate at least 50% of the funds
from this Account to small, minority, and women–owned businesses in the jurisdictions and
communities surrounding a video lottery facility.
(d) (1) Any money received from the Strategic Energy Investment Fund shall
be used to benefit small, minority, women–owned, and veteran–owned businesses in the
clean energy industry in the State.
(2) The Department shall make grants to eligible fund managers to provide
investment capital, including direct equity investments and similar investments and loans
to small, minority, women–owned, and veteran–owned businesses in the clean energy
industry in the State.
(e) Fund managers receiving grants under this section shall:
(1) keep proper records of funds and accounts;
(2) provide an annual report to the Governor and, in accordance with §
2–1257 of the State Government Article, the General Assembly on investment capital and
loans made pursuant to subsection (c) of this section; and
LAWRENCE J. HOGAN, JR., Governor Ch. 491
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(3) be subject to audit by the Office of Legislative Audits of the Department
of Legislative Services.
(f) (1) Subject to paragraph (2) of this subsection, an eligible fund manager
may use money from grants received under this section to pay expenses for administrative,
actuarial, legal, and technical services.
(2) The Department shall set the maximum amount of grant money that
each eligible fund manager may use under paragraph (1) of this subsection.
(g) (1) Subject to paragraphs (2) through (4) of this subsection, an eligible fund
manager may use money from a grant received under subsection (d)(1) of this section to pay
ordinary and reasonable expenses for administrative, actuarial, legal, marketing, and
technical services and management fees.
(2) The Department shall:
(i) maintain all money received from the Strategic Energy
Investment Fund in a single account; and
(ii) make grant allocations to an eligible fund manager as the
manager advises the Department that the manager has approved and prepared to fund an
investment or a loan.
(3) Any allocation that the Department makes to an eligible fund manager
from the Strategic Energy Investment Fund shall include:
(i) the amount of the investment or loan; and
(ii) up to an additional 3% of the total investment or loan
commitment amount as a management fee for the benefit and compensation of the eligible
fund manager.
(4) An eligible fund manager that receives an allocation from the Strategic
Energy Investment Fund shall retain for the manager’s benefit:
(i) all management fees paid by the Department; and
(ii) all interest earned from a loan made by the eligible fund manager
under this subsection.
(h) (1) Notwithstanding any provisions in this section to the contrary, this
subsection applies to businesses in areas of the State that are:
(i) declared to be federal disaster areas;
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(ii) subject to a federal declaration of emergency; or
(iii) subject to an official declaration of emergency by the Governor.
(2) In an area of the State described in paragraph (1) of this subsection, an
eligible fund manager may:
(i) provide financial assistance under this section to a small,
minority, or women–owned business in the form of a grant; or
(ii) convert to a grant part or all of a loan that was provided to a
small, minority, or women–owned business before the area was declared a federal disaster
area or became subject to a declaration of emergency.
(3) (i) The amount of any grant or loan converted to a grant under this
subsection may not exceed $50,000 for a single business.
(ii) The aggregate total of financial assistance provided in the form
of grants and loans converted to grants under this subsection may not exceed $10,000,000
in a fiscal year.
(I) (1) NOTWITHSTANDING ANY O THER PROVISION OF TH IS SECTION,
THIS SUBSECTION APPL IES TO BUSINESSES AN D NONPROFIT ORGANIZA TIONS IN
AREAS OF THE STATE WHERE THE PRINC IPAL EXECUTIVE OFFIC ER ANNE ARUNDEL
COUNTY AND THE CITY OF ANNAPOLIS WHEN THE PR INCIPAL EXECUTIVE OF FICER
HAS DECLARED A LOCAL STATE OF EMERGENCY U NDER § 14–111 OF THE PUBLIC
SAFETY ARTICLE.
(2) IN AN AREA OF THE STATE DESCRIBED IN SUBJECT TO
PARAGRAPH (1) OF THIS SUBSECTION , AN ELIGIBLE FUND MANAGE R MAY:
(I) PROVIDE FINANCIAL AS SISTANCE UNDER THIS SECTION TO
A SMALL, MINORITY, OR WOMEN –OWNED BUSINESS , INCLUDING NONPROFIT
ORGANIZATIONS , IN THE FORM OF A GRA NT; OR
(II) CONVERT TO A GRANT P ART OR ALL OF A LOAN THAT WAS
PROVIDED TO A SMALL , MINORITY, OR WOMEN–OWNED BUSINESS OR NO NPROFIT
ORGANIZATION BEFORE THE AREA BECAME SUBJ ECT TO A DECLARATION OF
EMERGENCY .
(3) THE AMOUNT OF ANY GRA NT OR LOAN CONVERTED TO A GRANT
UNDER THIS SUBSECTIO N MAY NOT EXCEED $50,000 FOR A SINGLE BUSINESS OR
NONPROFIT ORGANIZATI ON.
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(4) THE DEPARTMENT SHALL APPR OVE ANY ASSISTANCE T O A
BUSINESS OR NONPROFI T ORGANIZATION UNDER THIS SUBSECTION BEFO RE A FUND
MANAGER DISTRIBUTES A GRANT OR CONVERTS A LOAN TO A GRANT .
(5) THE DEPARTMENT SHALL ENSU RE THAT THE FINANCIAL
ASSISTANCE PROVIDED UNDER THIS SECTION D OES NOT EXCEED THE A MOUNT OF
MONEY DISTRIBUTED TO THE ACCOUNT FROM THE PROC EEDS OF VIDEO LOTTER Y
TERMINALS AT THE VID EO LOTTERY FACILITY LOCATED IN ANNE ARUNDEL COUNTY.
[(i)] (J) The Legislative Auditor shall audit the utilization of the funds that are
allocated to small, minority, and women–owned businesses by eligible fund managers
under subsection (c)(3) of this section during an audit of the applicable State unit as
provided in § 2–1220 of the State Government Article.
[(j)] (K) (1) On or before October 1 each year, the Department shall submit a
report on the status of money received from the Strategic Energy Investment Fund under
subsection (d) of this section to the Senate Finance Committee and the House Economic
Matters Committee, in accordance with § 2–1257 of the State Government Article.
(2) With respect to the preceding fiscal year and each relevant prior fiscal
year, the report shall include:
(i) the amounts received from the Fund;
(ii) the amounts placed as grants with eligible fund managers; and
(iii) with respect to each eligible fund manager:
1. the identity of the manager;
2. the money provided to the manager;
3. the investments made by the manager;
4. the amounts retained by the manager as expenses and
management fees;
5. the small, minority, women–owned, and veteran–owned
businesses receiving the investments; and
6. the status of the investments listed under item 5 of this
item, along with any return made on each investment.
SECTION 2. AND BE IT FURTHER ENACTED, That:
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(a) There is a Workgroup to Study the Establishment of a State Disaster Relief
Fund.
(b) The Workgroup consists of the following members:
(1) two members of the Senate of Maryland, appointed by the President of
the Senate;
(2) two members of the House of Delegates, appointed by the Speaker of
the House;
(3) (1) four representatives from county emergency management
agencies, designated by the Maryland Association of Counties;
(4) (2) two county government representatives with familiarity with
county purchasing and finance, designated by the Maryland Association of Counties;
(5) (3) two representatives from the Maryland Emergency Management
Association, designated by the President of the Association;
(6) (4) the Secretary of Emergency Management, or the Secretary’s
designee;
(7) (5) the Secretary of Human Services, or the Secretary’s designee;
(8) (6) two members of the Maryland Municipal League, appointed by
the President of the Maryland Municipal League; and
(9) the Maryland State Treasurer, or the Treasurer’s designee; and
(10) (7) two members to represent the Governor’s Emergency
Management Advisory Committee, appointed by the Governor.
(c) The Workgroup shall elect the chair of the Workgroup.
(d) The Maryland Department of Emergency Management shall provide staff for
the Workgroup.
(e) A member of the Workgroup:
(1) may not receive compensation as a member of the Workgroup; but
(2) is entitled to reimbursement for expenses under the Standard State
Travel Regulations, as provided in the State budget.
(f) The Workgroup shall study and make recommendations regarding: LAWRENCE J. HOGAN, JR., Governor Ch. 491
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(1) the efficacy and sustainability of existing emergency fund sources; and
(2) the potential establishment of a State Disaster Relief Fund.
(g) On or before December 31, 2022, the Workgroup shall report its findings and
recommendations to the Governor and, in accordance wit h § 2–1257 of the State
Government Article, the General Assembly.
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 2022. Section 1 of this Act shall remain effective for a period of 2 years and, at the
end of June 30, 2024, Section 1 of this Act, with no further action required by the General
Assembly, shall be abrogated and of no further force and effect. Section 2 of this Act shall
remain effective for a period of 1 year and, at the end of June 30, 2023, Section 2 of this Act,
with no further action required by the General Assembly, shall be abrogated and of no
further force and effect.
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.