EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1226*
HOUSE BILL 1226
C8 3lr2646
By: Delegate Healey
Introduced and read first time: February 10, 2023
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Economic Development – Nonprofit Sustainability Fund – Establishment 2
FOR the purpose of establishing the Nonprofit Sustainability Fund in the Department of 3
Commerce to provide general operating support to nonprofit organizations in the 4
State; establishing the Nonprofit Sustainability Fund Evaluation Committee to 5
evaluate applications from certain nonprofit organizations in the State for grants 6
from the Fund; establishing criteria for eligibility for a certain grant from the Fund; 7
and generally relating to the Department of Commerce and the Nonprofit 8
Sustainability Fund. 9
BY repealing and reenacting, without amendments, 10
Article – Economic Development 11
Section 1–101(a), (c), and (e) 12
Annotated Code of Maryland 13
(2018 Replacement Volume and 2022 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Economic Development 16
Section 5–102 17
Annotated Code of Maryland 18
(2018 Replacement Volume and 2022 Supplement) 19
BY adding to 20
Article – Economic Development 21
Section 5–2301 through 5–2308 to be under the new subtitle “Subtitle 23. Nonprofit 22
Sustainability Fund” 23
Annotated Code of Maryland 24
(2018 Replacement Volume and 2022 Supplement) 25
BY repealing and reenacting, without amendments, 26
Article – State Finance and Procurement 27 2 HOUSE BILL 1226
Section 6–226(a)(2)(i) 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2022 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – State Finance and Procurement 5
Section 6–226(a)(2)(ii)170. and 171. 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2022 Supplement) 8
BY adding to 9
Article – State Finance and Procurement 10
Section 6–226(a)(2)(ii)172. 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2022 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARY LAND, 14
That the Laws of Maryland read as follows: 15
Article – Economic Development 16
1–101. 17
(a) In this division the following words have the meanings indicated. 18
(c) “Department” means the Department of Commerce. 19
(e) “Secretary” means the Secretary of Commerce. 20
5–102. 21
The Department shall administer the State’s economic development and financial 22
assistance programs and funds including: 23
(1) the BRAC Revitalization and Incentive Zone Program, under Subtitle 24
13 of this title; 25
(2) the Enterprise Fund, under Subtitle 6 of this title; 26
(3) the Enterprise Zones Program, under Subtitle 7 of this title; 27
(4) the Make Office Vacancies Extinct Program, under Subtitle 15 of this 28
title; 29
(5) the Maryland Economic Adjustment Fund, under Subtitle 2 of this title; 30
HOUSE BILL 1226 3
(6) the Maryland Economic Development Assistance Authority and Fund, 1
under Subtitle 3 of this title; 2
(7) the Maryland Industrial Development Financing Authority, under 3
Subtitle 4 of this title; 4
(8) the Maryland Small Business Development Financing Authority, under 5
Subtitle 5 of this title; 6
(9) THE NONPROFIT SUSTAINABILITY FUND UNDER SUBTITLE 23 OF 7
THIS TITLE; 8
(10) the Appalachian Regional Development Program, under Title 13, 9
Subtitle 1 of this article; 10
[(10)] (11) jointly with the Department of Housing and Community 11
Development, the Community Development Block Grant for Economic Development; 12
[(11)] (12) the Regional Institution Strategic Enterprise Zone Program 13
under Subtitle 14 of this title; and 14
[(12)] (13) any other programs or funds designated by statute, the 15
Governor, or the Secretary. 16
SUBTITLE 23. NONPROFIT SUSTAINABILITY FUND. 17
5–2301. 18
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20
(B) “EVALUATION COMMITTEE” MEANS THE NONPROFIT SUSTAINABILITY 21
FUND EVALUATION COMMITTEE. 22
(C) “FUND” MEANS THE NONPROFIT SUSTAINABILITY FUND. 23
(D) “NONPROFIT ORGANIZATIO N” MEANS A N ORGANIZATION THAT IS 24
EXEMPT FROM TAXATION UNDER § 501(C)(3), (C)(4), OR (C)(6) OF THE INTERNAL 25
REVENUE CODE. 26
(E) “TOTAL REVENUE ” MEANS THE AMOUNT OF REVENUE THAT A 27
NONPROFIT ORGANIZATI ON MOST RECENTLY REPORTED TO THE INTERNAL 28
REVENUE SERVICE ON PART 1 OF THE FEDERAL FORM 990 OR FORM 990EZ. 29
5–2302. 30 4 HOUSE BILL 1226
THE GENERAL ASSEMBLY OF MARYLAND FINDS THAT : 1
(1) NONPROFIT ORGANIZATIO NS ARE ENGINES OF EC ONOMIC 2
OPPORTUNITY IN THE STATE; 3
(2) NONPROFIT ORGANIZATIO NS PROVIDE SERVICES AND BENEFITS 4
TO COMMUNITIES , FAMILIES, AND INDIVIDUAL S IN THE STATE THAT ARE IN THE 5
PUBLIC INTEREST ; 6
(3) NONPROFIT ORGANIZATIO NS ARE OFTEN ABLE TO PROVIDE 7
BENEFITS AND SERVICE S TO COMMUNITIES , FAMILIES, AND INDIVIDUALS WITH 8
GREATER EFFICIENCY , EFFECTIVENESS , AND FLEXIBILITY THAN GOVERNMENT AL 9
AGENCIES AND PROGRAMS ; 10
(4) SMALL AND MID –SIZED NONPROFIT ORGA NIZATIONS ARE MORE 11
LIKELY TO: 12
(I) BE LED BY MEMBERS OF HI STORICALLY DISADVANT AGED 13
MINORITIES; AND 14
(II) SERVE COMMUNITIES AN D POPULATIONS THAT H AVE BEEN 15
HISTORICALLY DISADVA NTAGED; 16
(5) SMALL AND MID –SIZED NONPROFIT ORGA NIZATIONS REQUIRE 17
ADEQUATE GENERAL OPE RATING SUPPORT TO BE ABLE TO PROVIDE BENEFITS AND 18
SERVICES TO COMMUNITIES , FAMILIES, AND INDIVIDUALS IN A SUSTAINABLE 19
MANNER; AND 20
(6) IT IS IN THE STATE’S INTEREST TO PROVID E GENERAL OPERATING 21
SUPPORT TO SMALL AND MID–SIZED NONPROFIT ORGANIZATIONS TO PROMOTE THE 22
SUSTAINABILITY OF TH E NONPROFIT ORGANIZA TIONS. 23
5–2303. 24
(A) THERE IS A NONPROFIT SUSTAINABILITY FUND EVALUATION 25
COMMITTEE. 26
(B) THE EVALUATION COMMITTEE CONSISTS OF THE FOL LOWING 27
MEMBERS: 28
(1) THE SECRETARY, OR THE SECRETARY’S DESIGNEE; 29
HOUSE BILL 1226 5
(2) THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MARYLAND 1
NONPROFITS, OR THE PRESIDENT AND CHIEF EXECUTIVE OFFICER’S DESIGNEE; 2
AND 3
(3) THE FOLLOWING MEMBER S, APPOINTED BY THE GOVERNOR: 4
(I) TWO MEMBERS WHO ARE EXPERIENCED NONPROFI T 5
ORGANIZATION MANAGERS OR CONSULTA NTS; 6
(II) TWO MEMBERS WHO ARE CURRENT OR PAST BOAR D 7
MEMBERS OF A NONPROF IT ORGANIZATION ; 8
(III) TWO MEMBERS WHO ARE CURRENT OR PAST EMPL OYEES OF 9
A NONPROFIT ORGANIZA TION; 10
(IV) THREE MEMBERS WHO AR E CURRENT OR PAST RE CIPIENTS 11
OR CUSTOMERS OF THE SERVICES OF A NONPROFIT ORGANIZATION ; AND 12
(V) TWO MEMBERS WHO ARE EXPERIENCED ECONOMIC 13
DEVELOPMENT PROFESSI ONALS. 14
(C) (1) THE TERM OF A MEMBER IS 4 YEARS. 15
(2) THE TERMS OF MEMBERS ARE STAGGERED AS REQ UIRED BY THE 16
TERMS PROVIDED FOR M EMBERS OF THE EVALUATION COMMITTEE ON OCTOBER 1, 17
2023. 18
(3) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 19
A SUCCESSOR IS APPOI NTED AND QUALIFIES . 20
(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 21
ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 22
QUALIFIES. 23
(D) THE GOVERNOR SHALL APPOIN T A CHAIR OF THE EVALUATION 24
COMMITTEE FROM AMONG ITS MEMBERS. 25
(E) A MAJORITY O F MEMBERS OF THE EVALUATION COMMITTEE IS A 26
QUORUM. 27
(F) A MEMBER OF THE EVALUATION COMMITTEE: 28
6 HOUSE BILL 1226
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE 1
EVALUATION COMMITTEE; BUT 2
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 3
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 4
(G) (1) THE EVALUATION COMMITTEE SHALL MEET AS NECESSARY TO 5
PERFORM ITS DUTIES , BUT AT LEAST TWO TIM ES EACH YEAR. 6
(2) A MEETING OF THE EVALUATION COMMITTEE MAY BE IN PERSON 7
OR VIRTUAL AT THE DISCRETION OF THE CHAIR. 8
(H) THE EVALUATION COMMITTEE SHALL : 9
(1) EVALUATE NONPROFIT O RGANIZATIONS THAT AP PLY FOR A 10
GRANT UNDER THIS SUB TITLE BASED ON THE C RITERIA LISTED IN §§ 5–2305 AND 11
5–2306 OF THIS SUBTITLE ; AND 12
(2) RECOMMEND TO THE DEPARTMENT WHICH APPL ICATIONS 13
SHOULD RECEIVE A GRA NT FROM THE FUND. 14
(I) THE GOVERNOR MAY REMOVE A N APPOINTED MEMBER F OR CAUSE. 15
5–2304. 16
(A) THERE IS A NONPROFIT SUSTAINABILITY FUND. 17
(B) THE PURPOSE OF THE FUND IS TO PROVIDE GE NERAL OPERATING 18
SUPPORT TO NONPROFIT ORGANIZ ATIONS IN THE STATE. 19
(C) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 20
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 21
SUBJECT TO REVERSION UNDER § 7–302 OF THE STATE FINANCE AND 22
PROCUREMENT ARTICLE. 23
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 24
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 25
(E) THE FUND CONSISTS OF : 26
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 27
HOUSE BILL 1226 7
(2) INTEREST EARNINGS FR OM THE FUND; AND 1
(3) ANY OTHER MONEY FROM ANY OTHER SOUR CE ACCEPTED FOR 2
THE BENEFIT OF THE FUND. 3
(F) (1) THE FUND MAY BE USED ONLY FOR: 4
(I) ISSUING GRANTS TO EL IGIBLE NONPROFIT ORG ANIZATIONS 5
IN ACCORDANCE WITH §§ 5–2305 AND 5–2306 OF THIS SUBTITLE ; 6
(II) REASONABLE ADMINISTR ATIVE EXPENSES INCUR RED BY 7
THE DEPARTMENT AND THE EVALUATION COMMITTEE; AND 8
(III) REASONABLE EXPENSES OF INTERMEDIARY 9
ORGANIZATIONS UNDER CONTRACT TO THE DEPARTMENT FOR PURPOS ES OF 10
MANAGING GRANTS UNDE R THIS SUBTITLE. 11
(2) FOR EACH FISCAL YEAR , NOT MORE THAN : 12
(I) 2% OF THE MONEY APPROPRIATED T O THE FUND MAY BE 13
USED FOR THE PURPOSE S LISTED IN PARAGRAP H (1)(II) OF THIS SUBSECTION ; AND 14
(II) 5% OF THE MONEY APPROPR IATED TO THE FUND MAY BE 15
USED FOR THE PURPOSE S LISTED IN PARAGRAP H (1)(III) OF THIS SUBSECTION . 16
(G) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , THE 17
GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION OF 18
$100,000,000 TO THE FUND. 19
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 20
IN THE SAME MANNER A S OTHER STATE MONEY MA Y BE INVESTED. 21
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 22
THE FUND. 23
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 24
WITH THE STATE BUDGET . 25
5–2305. 26
(A) A NONPROFIT ORGANIZATI ON IS ELIGIBLE FOR A GRANT UNDER THIS 27
SUBTITLE IF THE NONPROFIT ORG ANIZATION: 28
8 HOUSE BILL 1226
(1) IS IN GOOD STANDING WITH THE STATE DEPARTMENT OF 1
ASSESSMENTS AND TAXATION; 2
(2) IS PHYSICALLY LOCATE D IN THE STATE; AND 3
(3) HAD TOTAL REVENUE OF AT LEAST $50,000 BUT NOT MORE THAN 4
$10,000,000 IN THE THIRD CALENDA R YEAR BEFORE THE NO NPROFIT 5
ORGANIZATION APPLIES FOR A GRANT UNDER TH IS SUBTITLE. 6
(B) A NONPROFIT ORGANIZATI ON IS NOT ELIGIBLE F OR A GRANT UNDER 7
THIS SUBTITLE IF THE NONPROFIT ORGANI ZATION: 8
(1) OPERATES PRINCIPALLY AS: 9
(I) A HOSPITAL; 10
(II) A PRIMARY OR SECONDA RY SCHOOL; 11
(III) AN INSTITUTION OF HI GHER EDUCATION ; 12
(IV) A PLACE OF WORSHIP ; OR 13
(V) A CREDIT UNION; OR 14
(2) HAS RECEIVED MORE THAN FIVE GRANTS FROM THE FUND. 15
(C) A NONPROFIT ORGANIZATION MAY BE AWARDED ONE GRANT FR OM THE 16
FUND EACH YEAR , REGARDLESS OF THE NU MBER OF LOCATIO NS THE NONPROFIT 17
ORGANIZATION OPERATES. 18
(D) (1) THE EVALUATION COMMITTEE SHALL DETER MINE WHETHER A 19
NONPROFIT ORGANIZATI ON MEETS THE ELIGIBILIT Y REQUIREMENTS OF THIS 20
SECTION. 21
(2) A DECISION MADE IN ACC ORDANCE WITH PARAGRAPH (1) OF THIS 22
SUBSECTION IS FINAL AND NOT SUB JECT TO APPEAL . 23
5–2306. 24
(A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 25
NONPROFIT ORGANIZATI ON MAY USE GRANT FUNDS FOR ANY LEGAL PURPOS E. 26
HOUSE BILL 1226 9
(2) A NONPROFIT ORGANIZATI ON MAY NOT USE GRANT FUNDS FROM 1
THE FUND FOR SECTARIAN RELIGI OUS PURPOSES . 2
(B) (1) THE EVALUATION COMMITTEE SHALL CONSIDER EACH TIMELY 3
AND COMPLETE APPLICA TION. 4
(2) EACH APPLICATION SHALL BE DETERMINED TO BE : 5
(I) HIGH–PRIORITY; 6
(II) REGULAR–PRIORITY; OR 7
(III) NOT ELIGIBLE. 8
(C) THE EVALUATION COMMITTEE SHALL DESIG NATE THE FOLLOWING 9
TYPES OF NONPROFIT O RGANIZATIONS TO BE H IGH–PRIORITY: 10
(1) HUMAN SERVICES OR GANIZATIONS, INCLUDING: 11
(I) COMMUNITY HEALTH SER VICES, INCLUDING MEDICAL AN D 12
DENTAL SERVICES ; 13
(II) SERVICES FOR INDIVID UALS EXPERIENCING 14
HOMELESSNESS OR HOUS ING INSECURITY; 15
(III) FOOD INSECURITY AND FOOD ASSISTANCE ; 16
(IV) SERVICES FOR YOUTH OR FAMILIES IN CRISI S; 17
(V) SERVICES PROVIDING A DVOCACY, SAFETY, AND 18
PROTECTION FROM ABUS E; 19
(VI) BEHAVIORAL HEALTH AN D ADDICTION TREATMEN T 20
SERVICES; 21
(VII) INCOME ASSISTANCE , EMPLOYMENT SERVICES , OR JOB 22
TRAINING; 23
(VIII) SERVICES FOR INDIVIDUALS WITH PHY SICAL OR 24
INTELLECTUAL DISABIL ITIES; AND 25
(IX) SERVICES FOR AGING A DULTS; 26
10 HOUSE BILL 1226
(2) CULTURALLY SPECIFIC ORGANIZATIO NS SERVING HISTORICA LLY 1
UNDERSERVED AND UNDE RREPRESENTED COMMUNI TIES, INCLUDING 2
DISADVANTAGED RACIAL , ETHNIC, AND RELIGIOUS MINORITIES , IMMIGRANTS, AND 3
LESBIAN, GAY, BISEXUAL, TRANSGENDER, AND OTHER GENDER–NONCONFORMING 4
INDIVIDUALS; 5
(3) NONPROFIT ORGANIZATI ONS LOCATED OUTSIDE THE BALTIMORE 6
AND WASHINGTON METROPOLIT AN AREAS; AND 7
(4) NONPROFIT ORGANIZATI ONS WITH: 8
(I) TOTAL REVENUE OF $1,500,000 OR LESS; AND 9
(II) OPERATIONS PRINCIPAL LY LOCATED IN THE FO LLOWING 10
COUNTIES: 11
1. ALLEGANY; 12
2. GARRETT; 13
3. CAROLINE; 14
4. CECIL; 15
5. KENT; 16
6. ST. MARY’S; 17
7. SOMERSET; 18
8. TALBOT; 19
9. WICOMICO; 20
10. WASHINGTON; AND 21
11. WORCESTER. 22
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , EACH 23
NONPROFIT ORGANIZATI ON WHOSE APPLICATION IS DETERMINED TO BE 24
HIGH–PRIORITY SHALL RECEI VE THE MAXIMUM GRANT BASED ON THE 25
CALCULATION IN SUBSECTION (F) OF THIS SECTION. 26
HOUSE BILL 1226 11
(2) IF THE TOTAL AMOUNT OF THE MAXIMUM GRANT S TO 1
HIGH–PRIORITY APPLICANTS EXCEEDS THE AVAILABL E FUNDING, THE GRANT 2
AMOUNTS SHALL BE RED UCED ON A PRO RATED BASIS. 3
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , EACH 4
NONPROFIT ORGANIZATI ON WHO SE APPLICATION IS DETER MINED TO BE 5
REGULAR–PRIORITY SHALL RECEI VE THE MAXIMUM GRANT BASED ON THE 6
CALCULATION IN SUBSECTION (F) OF THIS SECTION. 7
(2) IF THE TOTAL AMOUNT OF THE MAXIMUM GRANT S TO 8
REGULAR–PRIORITY APPLICATION S EXCEEDS THE AVAILA BLE FUNDING , THE 9
GRANT AMOUNTS SHALL BE REDUCED ON A PRO RATED BASIS. 10
(F) THE MAXIMUM AMOUNT A NONPROFIT O RGANIZATION MAY RECE IVE 11
FROM A GRANT AWARDED UNDER THIS SUB TITLE IS CALCULATED IN THE 12
FOLLOWING MANNER : 13
(1) 10% OF THE NONPROFIT ORG ANIZATION’S TOTAL REVENUE , IF 14
THE NONPROFIT ORGANIZATION ’S TOTAL REVENUE IS AT LEAST $50,000 BUT NOT 15
GREATER THAN $500,000; 16
(2) THE GREATER OF $50,000 OR 5% OF THE NONPROFIT 17
ORGANIZATION ’S TOTAL REVENUE , IF THE NONPROFIT ORGANIZATI ON’S TOTAL 18
REVENUE IS MORE THAN $500,000 BUT NOT GREATER THAN $2,500,000; AND 19
(3) THE GREATER OF $125,000 OR 1.5% OF THE NONPROFIT 20
ORGANIZATION ’S TOTAL REVENUE , IF THE NONPROFIT ORGANIZATION ’S TOTAL 21
REVENUE IS MORE THAN $2,500,000 BUT NOT GREATER THAN $10,000,000. 22
(G) (1) THE DEPARTMENT MAY CONTRA CT WITH ONE OR MORE 23
INTERMEDIARY ORGANIZ ATIONS TO ASSIST IN ADMINISTERING GRANTS UNDER THIS 24
SUBTITLE, MARKETING AND OUTREA CH, TECHNICAL ASSISTANCE , AND FUND 25
NAVIGATION. 26
(2) THE EVALUATION COMMITTEE SHALL ADVIS E THE DEPARTMENT 27
IN THE SELECTION OF INTERMEDIARY ORGANIZ ATIONS. 28
(H) THE DEPARTMENT SHALL DISB URSE GRANT FUNDS TO A NONPROFIT 29
ORGANIZATION THAT IS AWARDED A GRANT UNDER THIS SUB TITLE WITHIN 37 DAYS 30
AFTER THE ANNOUNCEMENT OF THE AWARD AND THE IS SUANCE OF A GRANT 31
AGREEMENT . 32
5–2307. 33 12 HOUSE BILL 1226
(A) (1) THE DEPARTMENT SHALL DISC LOSE TO THE EVALUATION 1
COMMITTEE ALL MATERIA L ACTIONS AND DECISI ONS THE DEPARTMENT MAKES 2
REGARDING THE ADMINI STRATION OF THE FUND. 3
(2) THE DEPARTMENT SHALL GIVE DUE CONSIDERATION TO THE 4
RECOMMENDATIONS OF T HE EVALUATION COMMITTEE. 5
(B) (1) THE DEPARTMENT SHALL PUBL ISH ON THE DEPARTMENT ’S 6
WEBSITE INSTRUCTIONS FOR APPLYING F OR GRANTS UNDER THIS SUBTITLE , 7
INCLUDING A CLEAR AN D REASONABLE DEADLIN E FOR THE SUBMISSION OF 8
APPLICATIONS. 9
(2) THE INFORMATION ON TH E WEBSITE SHALL BE U PDATED 10
ANNUALLY. 11
5–2308. 12
(A) THE DEPARTMENT MAY ADOPT REGULATION S TO CARRY OUT THIS 13
SUBTITLE. 14
(B) IN ESTABLISHING INSTR UCTIONS, PROCEDURES , FORMS, GRANT 15
AGREEMENTS , REPORTING REQUIREMEN TS, AND REGULATIONS , THE DEPARTMENT 16
AND THE EVALUATION COMMITTEE SHALL , CONSISTENT WITH ACCE PTABLE 17
FINANCIAL MANAGEMENT PRACTICES, ATTEMPT TO MINIMIZE THE 18
ADMINISTRA TIVE BURDEN TO NONPR OFIT ORGANIZATIONS . 19
Article – State Finance and Procurement 20
6–226. 21
(a) (2) (i) Notwithstanding any other provision of law, and unless 22
inconsistent with a federal law, grant agreement, or other federal requirement or with the 23
terms of a gift or settlement agreement, net interest on all State money allocated by the 24
State Treasurer under this section to special funds or accounts, and otherwise entitled to 25
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 26
Fund of the State. 27
(ii) The provisions of subparagraph (i) of this paragraph do not apply 28
to the following funds: 29
170. the Cannabis Public Health Fund; [and] 30
171. the Community Reinvestment and Repair Fund; AND 31
HOUSE BILL 1226 13
172. THE NONPROFIT SUSTAINABILITY FUND. 1
SECTION 2. AND BE IT FURTHER ENACTED, That the terms of the initial 2
members of the Nonprofit Sustainability Fund Evaluation Committee appointed under § 3
5–2303(b)(3) of the Economic Development Article, as enacted by Section 1 of this Act, shall 4
expire as follows: 5
(1) two members in 2024; 6
(2) three members in 2025; 7
(3) three members in 2026; and 8
(4) three members in 2027. 9
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
October 1, 2023. 11