EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0393*
SENATE BILL 393
C8 2lr0141
CF HB 414
By: The President (By Request – Administration) and Senators Bailey, Carozza,
Cassilly, Corderman, Eckardt, Edwards, Elfreth, Gallion, Hershey, Hester,
Hough, Jennings, Ready, Salling, Simonaire, and West West, Kagan, and
Ellis
Introduced and read first time: January 24, 2022
Assigned to: Education, Health, and Environmental Affairs
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 3, 2022
CHAPTER ______
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, and nonprofit organizations to revitalize 5
certain vacant retail and commercial space; authorizing the award of certain grants 6
to certain businesses and, developers, and nonprofit organizations under certain 7
circumstances; establishing the Project Restore Fund as a special, nonlapsing fund 8
in the Department; requiring interest earnings of the Fund to be credited to the 9
Fund; and generally relating to the Project Restore Program and 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 Restore 18
Program and Fund” 19
Annotated Code of Maryland 20 2 SENATE BILL 393
(2019 Replacement Volume and 2021 Supplement) 1
BY repealing and reenacting, without amendments, 2
Article – State Finance and Procurement 3
Section 6–226(a)(2)(i) 4
Annotated Code of Maryland 5
(2021 Replacement Volume) 6
BY repealing and reenacting, with amendments, 7
Article – State Finance and Procurement 8
Section 6–226(a)(2)(ii)144. and 145. 9
Annotated Code of Maryland 10
(2021 Replacement Volume) 11
BY adding to 12
Article – State Finance and Procurement 13
Section 6–226(a)(2)(ii)146. 14
Annotated Code of Maryland 15
(2021 Replacement Volume) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Economic Development 19
6–801. 20
(a) In this subtitle the following words have the meanings indicated. 21
(l) “Tier I area” means: 22
(1) a Tier I county, as defined in § 1–101 of this article; 23
(2) a county designated by the Department that is not a county described 24
in item (1) of this subsection, not to exceed three counties; or 25
(3) an opportunity zone. 26
Article – Housing and Community Development 27
SUBTITLE 11. PROJECT RESTORE PROGRAM AND FUND. 28
6–1101. 29
(A) IN THIS SECTION , “PROGRAM” MEANS THE PROJECT RESTORE 30
PROGRAM. 31
SENATE BILL 393 3
(B) THERE IS A PROJECT RESTORE PROGRAM IN THE DEPARTMENT . 1
(C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL 2
INCENTIVES FOR SMALL BUSINESSES AND, COMMERCIAL DEVELOPER S, AND 3
NONPROFIT ORGANIZATI ONS TO REVITALIZE VACANT RETAIL AND COMMERCIA L 4
SPACE. 5
(D) EXPENDITURES FOR THE PROGRAM MAY BE MADE O NLY IN 6
ACCORDANCE WITH THE STATE BUDGET. 7
(E) (1) SUBJECT TO THE AVAILA BILITY OF FUNDING AN D IN 8
ACCORDANCE WITH CRIT ERIA ESTABLISHED BY THE DEPARTMENT , THE PROGRAM 9
SHALL PROVIDE RENTAL GRANTS AND BUSINESS OPERATION GRANTS TO ELIGIBLE 10
BUSINESSES AND NONPROFIT ORGANI ZATIONS. 11
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 12
PROGRAM SHALL GIVE GR ANT PRIORITY TO SMAL L BUSINESSES AND NON PROFIT 13
ORGANIZATIONS THAT O FFER HEALTHY FOOD OP TIONS IN DESIGNATED FOOD 14
DESERT AREAS OR SUST AINABLE COMMUNITIES UNDER TITLE 6 OF THIS ARTICLE. 15
(II) FIRST PRIORITY SHALL BE GIVEN TO NEW, RECOVERING , OR 16
EXPANDING SMALL BUSI NESSES AND NONPROFIT ORGANIZATIONS THAT M EET THE 17
REQUIREMENTS OF SUBP ARAGRAPH (I) OF THIS PARAGRAPH AN D SOURCE FRESH 18
FOOD FROM FARMERS IN THE STATE. 19
(F) (1) IN ORDER TO BE ELIGIBLE FOR THE PROGRAM, A BUSINESS OR 20
NONPROFIT ORGANIZATI ON SHALL OPEN OR EXPAND IN A RETAIL OR COMME RCIAL 21
PROPERTY THAT HAS BE EN VACANT FOR AT LEA ST 6 CONTINUOUS MONTHS BE FORE 22
THE LATER OF THE DAT E THAT THE BUSINESS OR NONPROFIT ORGANIZ ATION: 23
(I) OBTAINED AN OWNERSHI P INTEREST IN THE PR OPERTY; OR 24
(II) BEGAN CONSTRUCTION O R RENOVATION OF THE 25
PROPERTY. 26
(2) A BUSINESS OR NONPROFIT ORGANIZ ATION THAT TOOK AN 27
OWNERSHIP INTEREST I N A PROPERTY OR BEGA N CONSTRUCTION OR RE NOVATION 28
OF A PROPERTY BEFORE JULY 1, 2021, IS NOT ELIGIBLE FOR THE PROGRAM WITH 29
RESPECT TO THAT PROP ERTY. 30
(3) THE DEPARTMENT MAY EXCLUD E CERTAIN TYPES OF 31
BUSINESSES OR NONPROFIT ORGANIZ ATIONS FROM ELIGIBILITY FOR THE 32
PROGRAM. 33
4 SENATE BILL 393
(G) (1) THE PROGRAM MAY AWARD REN TAL GRANTS ONLY TO AN 1
ELIGIBLE BUSINESS OR NONPROFIT ORGANIZ ATION WITH 50 OR FEWER FULL –TIME 2
EQUIVALENT EMPLOYEES . 3
(2) AN ELIGIBLE BUSINESS OR NONPROFIT ORGANIZ ATION MAY USE 4
RENTAL GRANT FUNDS A WARDED UNDER THIS SU BSECTION TO SUPPORT THE 5
PAYMENT OF RENT , MORTGAGE , OR PROPERTY TAXES BASED ON WHETHER THE 6
BUSINESS OR NONPROFIT ORGANIZ ATION WILL LEASE, WILL PURCHASE , OR 7
ALREADY OWNS THE VAC ANT PROPERTY THAT TH E BUSINESS OR NONPROFIT 8
ORGANIZATION WILL OCCUPY. 9
(3) (I) THE SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 10
THE PROGRAM MAY AWARD AN ELIGIBLE BUSINESS OR NONPROFIT ORGANIZ ATION 11
A RENTAL GRANT NOT E XCEEDING $2,500 FOR EACH MONTH FOR A PERIOD NOT 12
EXCEEDING 12 MONTHS. 13
(II) 1. THE PROGRAM MAY AWARD AN ELIGIBLE SMALL 14
BUSINESS OR NONPROFI T ORGANIZATION THAT OFFERS HEA LTHY FOOD OPTIONS IN 15
DESIGNATED FOOD DESE RT AREAS OR SUSTAINA BLE COMMUNITIES UNDE R TITLE 6 16
OF THIS ARTICLE A RE NTAL GRANT NOT EXCEE DING $2,500 FOR EACH MONTH FOR 17
A PERIOD NOT EXCEEDI NG 5 YEARS. 18
2. A SMALL BUSINESS OR NO NPROFIT ORGANIZATION 19
AWARDED A G RANT UNDER SUBSUBPAR AGRAPH 1 OF THIS SUBPARAGRAPH MAY 20
SUBMIT AN APPLICATIO N TO RENEW THE RENTA L GRANT. 21
(H) (1) SUBJECT TO THE LIMITA TIONS OF THIS SUBSEC TION, THE 22
PROGRAM MAY AWARD A B USINESS OPERATIONS G RANT TO PROVIDE SALE S AND 23
USE TAX REBATES TO A N ELIGIBLE BUSINESS OR NONPROFIT ORGANIZ ATION FOR 24
THE AMOUNT OF SALES AND USE TAX COLLECTE D BY THE BUSINESS OR NONPROFIT 25
ORGANIZATION AND PAID TO THE STATE. 26
(2) (I) AN ELIGIBLE BUSINESS OR NONPROFIT ORGANIZ ATION MAY 27
USE A BUSINESS OPERA TIONS GRANT FOR ACTI VITIES AND COSTS RELA TED TO 28
SUSTAINING AND GROWI NG THE BUSINESS OR NONPROFIT ORGANIZ ATION, 29
INCLUDING STAFF COST S, CAPITAL IMPROVEMENTS , MARKETING, INVENTORY, 30
SUPPLIES, UTILITIES, AND TRAINING. 31
(II) AN ELIGIBLE BUSINESS OR NONPROFIT ORGANIZ ATION MAY 32
NOT USE A BUSINESS OPERA TIONS GRANT FOR THE PAYMENT OF EXECUTIVE 33
SALARIES OR EXECUTIV E BONUSES. 34
(3) A BUSINESS OPERATIONS GRANT MAY NOT EXCEED $250,000 35
DURING A 12–MONTH PERIOD . 36 SENATE BILL 393 5
(4) THE PROGRAM MAY AWARD A B USINESS OPERATIONS G RANT FOR: 1
(I) A PERIOD NOT EXCEEDING 2 YEARS FOR A BUSINESS OR 2
NONPROFIT ORGANIZATI ON THAT IS LOCATED IN : 3
1. A TIER I AREA, AS DEFINED IN § 6–801 OF THE 4
ECONOMIC DEVELOPMENT ARTICLE; OR 5
2. A LOCATION DESIGNATE D BY THE DEPARTMENT AS A 6
MAIN STREET MARYLAND COMMUNITY; OR 7
(II) A PERIOD NOT EXCEEDI NG 1 YEAR FOR A BUSINESS OR 8
NONPROFIT ORGANIZATI ON THAT IS NOT LOCATED IN AN AREA DESCRIBED UNDER 9
ITEM (I) OF THIS PARAGRAPH ; OR 10
(III) A PERIOD NOT EXCEEDI NG 5 YEARS FOR A SMALL BU SINESS 11
OR NONPROFIT ORGANIZ ATION THAT OFFER S HEALTHY FOOD OPTIO NS IN 12
DESIGNATED FOOD DESE RT AREAS OR SUSTAINA BLE COMMUNITIES UNDE R TITLE 6 13
OF THIS ARTICLE. 14
(5) A SMALL BUSINESS OR NO NPROFIT ORGANIZATION AWARDED A 15
GRANT UNDER PARAGRAP H (4)(III) OF THIS SUBSECTION M AY SUBMIT AN 16
APPLICATION TO RENE W THE BUSINESS OPERA TIONS GRANT. 17
(I) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THE 18
PROGRAM. 19
(J) ON OR BEFORE NOVEMBER 1, 2023, AND EACH NOVEMBER 1 20
THEREAFTER , THE DEPARTMENT SHALL SUBM IT A REPORT TO THE SENATE 21
EDUCATION, HEALTH, AND ENVIRONMENTAL AFFAIRS COMMITTEE AND THE 22
HOUSE COMMITTEE ON WAYS AND MEANS, IN ACCORDANCE WITH § 2–1257 OF THE 23
STATE GOVERNMENT ARTICLE, ON THE FOLLOWING FOR THE IMMEDIATELY 24
PRECEDING REPORTING PERIOD: 25
(1) THE IMPLEMENTATION A ND PERFORMANCE OF TH E PROGRAM 26
AND USE OF THE PROJECT RESTORE FUND; 27
(2) THE AMOUNT OF GRANT MONEY AWARDED ; 28
(3) THE AMOUNT OF GRANT MONEY RECEIVED BY EA CH COUNTY; AND 29
(4) THE TYPE OF ORGANIZA TIONS THAT RECEIVED GRANT MONEY 30
AND IN WHAT AMOUNTS . 31 6 SENATE BILL 393
6–1102. 1
(A) IN THIS SECTION, “FUND” MEANS THE PROJECT RESTORE FUND. 2
(B) THERE IS A PROJECT RESTORE FUND. 3
(C) THE PURPOSE OF THE FUND IS TO FUND RENTA L GRANTS AND 4
BUSINESS OPERATIONS GRANTS AWARDED UNDER THE PROJECT RESTORE 5
PROGRAM IN ACCORDANCE WITH § 6–1101 OF THIS SUBTITLE. 6
(D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 7
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 8
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 10
AND THE COMPTROLLER SHALL A CCOUNT FOR THE FUND. 11
(F) THE FUND CONSISTS OF : 12
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 13
(2) INTEREST EARNINGS ; AND 14
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 15
THE BENEFIT OF THE FUND. 16
(G) THE FUND MAY BE USED ONLY : 17
(1) FOR THE PURPOSES DES CRIBED UNDER SUBSECT ION (C) OF THIS 18
SECTION; AND 19
(2) TO PAY THE COSTS NEC ESSARY TO ADMINISTER THE FUND. 20
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 21
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 22
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 23
THE FUND. 24
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 25
WITH THE STATE BUDGET . 26
SENATE BILL 393 7
(J) MONEY EXPENDED FROM T HE FUND IS SUPPLEMENTAL TO AND IS NOT 1
INTENDED TO TAKE THE PLACE OF FUND ING THAT OTHERWISE W OULD BE 2
APPROPRIATED FOR BUSINESS –RELATED AS GRANTS FOR BUSINESSES OR 3
NONPROFIT ORGANIZATI ONS. 4
Article – State Finance and Procurement 5
6–226. 6
(a) (2) (i) Notwithstanding any other provision of law, and unless 7
inconsistent with a federal law, grant agreement, or other federal requirement or with the 8
terms of a gift or settlement agreement, net interest on all State money allocated by the 9
State Treasurer under this section to special funds or accounts, and otherwise entitled to 10
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 11
Fund of the State. 12
(ii) The provisions of subparagraph (i) of this paragraph do not apply 13
to the following funds: 14
144. the Health Equity Resource Community Reserve Fund; 15
[and] 16
145. the Access to Counsel in Evictions Special Fund; AND 17
146. THE PROJECT RESTORE FUND. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2022. It shall remain effective for a period of 5 years and, at the end of September 20
30, 2027, this Act, with no further action required by the General Assembly, shall be 21
abrogated and of no further force and effect. 22
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.