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.
*hb0552*
HOUSE BILL 552
C8 3lr0127
CF SB 549
By: The Speaker (By Request – Administration) and Delegates Addison, Allen,
Amprey, Anderton, Attar, Bagnall, Bhandari, Boafo, Buckel, Cardin,
Charles, Conaway, Crosby, Crutchfield, Cullison, Davis, Ebersole, Edelson,
Embry, Fennell, Foley, Fraser–Hidalgo, Grossman, Guyton, Harris, Healey,
Henson, Holmes, Hornberger, D. Jones, Kaufman, Kelly, Kerr, J. Long,
Lopez, McCaskill, McComas, Pasteur, Patterson, Phillips, Qi, Queen,
Reznik, Rosenberg, Ruth, Sample –Hughes, Shetty, Simpson, Smith,
Solomon, Stein, Taveras, Toles, Turner, Valderrama, Vogel, Watson, Wells,
Wilkins, Williams, Wivell, Woods, Wu, and Young
Introduced and read first time: February 2, 2023
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 5, 2023
CHAPTER ______
AN ACT concerning 1
Economic Development – Build Our Future Grant Pilot Program and Fund 2
(Innovation Economy Infrastructure Act of 2023) 3
FOR the purpose of establishing the Build Our Future Grant Pilot Program in the 4
Department of Commerce to provide funding for certain costs for infrastructure 5
projects in eligible technology sectors; requiring certain grantees to provide matching 6
funds and to demonstrate certain abilities; establishing the Build Our Future Grant 7
Fund as a special, nonlapsing fund; and generally relating to the Build Our Future 8
Grant Pilot Program and Fund. 9
BY repealing and reenacting, with amendments, 10
Article – Economic Development 11
Section 5–102 12
Annotated Code of Maryland 13
(2018 Replacement Volume and 2022 Supplement) 14
BY adding to 15 2 HOUSE BILL 552
Article – Economic Development 1
Section 5–2301 through 5–2307 to be under the new subtitle “Subtitle 23. Build Our 2
Future Grant Pilot Program” 3
Annotated Code of Maryland 4
(2018 Replacement Volume and 2022 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – State Finance and Procurement 7
Section 6–226(a)(2)(i) 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2022 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – State Finance and Procurement 12
Section 6–226(a)(2)(ii)170. and 171. 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2022 Supplement) 15
BY adding to 16
Article – State Finance and Procurement 17
Section 6–226(a)(2)(ii)172. 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2022 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Economic Development 23
5–102. 24
The Department shall administer the State’s economic development and financial 25
assistance programs and funds including: 26
(1) the BRAC Revitalization and Incentive Zone Program, under Subtitle 27
13 of this title; 28
(2) THE BUILD OUR FUTURE GRANT PILOT PROGRAM, UNDER 29
SUBTITLE 23 OF THIS TITLE; 30
(3) the Enterprise Fund, under Subtitle 6 of this title; 31
[(3)] (4) the Enterprise Zones Program, under Subtitle 7 of this title; 32
[(4)] (5) the Make Office Vacancies Extinct Program, under Subtitle 15 of 33
this title; 34
HOUSE BILL 552 3
[(5)] (6) the Maryland Economic Adjustment Fund, under Subtitle 2 of 1
this title; 2
[(6)] (7) the Maryland Economic Development Assistance Authority and 3
Fund, under Subtitle 3 of this title; 4
[(7)] (8) the Maryland Industrial Development Financing Authority, 5
under Subtitle 4 of this title; 6
[(8)] (9) the Maryland Small Business Development Financing Authority, 7
under Subtitle 5 of this title; 8
[(9)] (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. BUILD OUR FUTURE GRANT PILOT PROGRAM. 17
5–2301. 18
(A) IN THIS SUBTITLE THE FO LLOWING WORDS HAVE T HE MEANINGS 19
INDICATED. 20
(B) “FUND” MEANS THE BUILD OUR FUTURE GRANT FUND. 21
(C) “PROGRAM” MEANS THE BUILD OUR FUTURE GRANT PILOT PROGRAM. 22
5–2302. 23
(A) THERE IS A BUILD OUR FUTURE GRANT PILOT PROGRAM IN THE 24
DEPARTMENT . 25
(B) THE PURPOSE OF THE PROGRAM IS TO PROVIDE GRANT FUNDING FOR 26
INFRASTRUCTURE PROJE CTS INTENDED TO SUPP ORT INNOVATION IN AN ELIGIBLE 27
TECHNOLOGY SECTOR . 28
4 HOUSE BILL 552
(C) GRANTS MAY BE AWARDED TO PRIVATE COMPANIES , NONPROFIT 1
ENTITIES, LOCAL GOVERNMENTS , OR COLLEGES AND UNIVE RSITIES IN THE STATE. 2
(D) THE DEPARTMENT SHALL ADMI NISTER THE PROGRAM. 3
5–2303. 4
(A) TO CARRY OUT THE PURP OSE OF THE PROGRAM, THE DEPARTMENT 5
MAY AWARD GRANTS IN ACCORDANCE WITH THIS SUBTITLE TO APPROVED 6
RECIPIENTS CARRYING OUT INFRAS TRUCTURE PROJECTS IN TENDED TO SUPPORT 7
INNOVATION IN ANY OF THE FOLLOWING ELIGIB LE TECHNOLOGY SECTOR S: 8
(1) ADVANCED MANUFACTURI NG; 9
(2) AEROSPACE; 10
(3) AGRICULTURE ; 11
(4) ARTIFICIAL INTELLIGE NCE; 12
(5) BIOTECHNOLOGY ; 13
(6) BLUE TECHNOLOGY ; 14
(7) CYBERSECURITY ; 15
(8) DEFENSE; 16
(9) ENERGY AND SUSTAINAB ILITY; 17
(10) LIFE SCIENCES; 18
(11) QUANTUM; AND 19
(12) SENSOR AND ROBOTICS . 20
(B) EXAMPLES OF ELIGIBLE PROJECTS INCLUDE : 21
(1) SECURE COMPARTMENTAL IZED SENSITIVE COMPARTMEN TED 22
INFORMATION FACILITIES; 23
(2) WET LABORATORIES ; 24
(3) CYBER RANGES ; 25
HOUSE BILL 552 5
(4) PROTOTYPE MANUFACTUR ING CENTERS; AND 1
(5) OTHER SPECIALIZED WO RKFORCE TRAINING , SKILL 2
CERTIFICATION , OR RESEARCH –RELATED SPACES . 3
(C) GRANT AWARDS MAY BE U SED TO DEFRAY THE CO ST A GRANTEE INCURS 4
TO ACQUIRE , CONSTRUCT , REHABILITATE , INSTALL, IMPROVE, OR EQUIP AN 5
ELIGIBLE INNOVATION INFRASTRUCTURE PROJE CT. 6
(D) (1) A SINGLE ENTITY MAY BE AWARDED NOT MORE THA N $2,000,000 7
IN GRANT FUNDS IN A FISCAL YEAR. 8
(2) (I) FOR A GRANT AWARD UP TO $1,000,000, A GRANTEE SHALL 9
PROVIDE MATCHING FUN DS THAT ARE AT LEAST 200% OF THE GRANT AMOUNT . 10
(II) FOR A GRANT AWARD EXC EEDING $1,000,000, AND UP TO 11
$2,000,000, A GRANTEE SHALL PROV IDE MATCHING FUNDS T HAT ARE AT LEAST 12
400% OF THE GRANT AMOUNT . 13
(III) FUNDS RECEIVED BY A G RANTEE THROUGH OTHER STATE 14
GRANT PROGRAMS ARE N OT COUNTED TOWARD TH E GRANTEE’S MATCHING FUNDS 15
REQUIREMENT . 16
(3) A GRANTEE MUST DEMONST RATE AN ABILITY TO C OVER THE FULL 17
ESTIMATED COSTS OF T HE PROJECT FOR WHICH THE GRANT IS AWARDED . 18
(4) (I) NOT MORE THAN 50% OF THE APPROPRIATION TO THE 19
FUND IN A FISCAL YEAR MAY BE AWARDED TO CO LLEGES AND UNIVERSIT IES IN 20
THAT FISCAL YEAR . 21
(II) GRANTS TO COLLEGES AN D UNIVERSITIES FROM THE FUND 22
MUST BE AWARDED TO P ROJECTS THAT : 23
1. ARE PERFORMED IN COLLABORATION WIT H PRIVATE 24
INDUSTRY; OR 25
2. OFFER THE PROSPECT O F SIGNIFICANT ECONOM IC 26
IMPACT AND THE OPPOR TUNITY TO DEVELOP EN TREPRENEURSHIP OR CL USTERS 27
OF TECHNOLOGICAL INN OVATION IN THE STATE. 28
5–2304. 29
A GRANTEE MAY BE SUBJE CT TO REPAYMENT OF THE GRANT IN AN AMOU NT 30
DETERMINED BY THE DEPARTMENT IF THE GRA NTEE FAILS TO: 31 6 HOUSE BILL 552
(1) COMPLY WITH REPORTIN G REQUIREMENTS ESTAB LISHED BY THE 1
DEPARTMENT ; OR 2
(2) DEMONSTRATE APPROPRI ATE USE OF GRANT FUN DS. 3
5–2305. 4
(A) THERE IS A BUILD OUR FUTURE GRANT FUND. 5
(B) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 6
(C) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS FOR 7
INFRASTRUCTURE PROJE CTS TO SUPPORT INNOV ATION IN ELIGIBLE TE CHNOLOGY 8
SECTORS UNDER THIS S UBTITLE. 9
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND TH AT IS NOT 10
SUBJECT TO REVERSION UNDER § 7–302 OF THE STATE FINANCE AND 11
PROCUREMENT ARTICLE. 12
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 13
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 14
(E) THE FUND CONSISTS OF : 15
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 16
(2) ANY INTEREST EARNING S OF THE FUND; AND 17
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 18
THE BENEFIT OF THE FUND. 19
(F) (1) THE FUND MAY BE USED TO : 20
(I) PROVIDE GRANTS IN AC CORDANCE WITH THIS S UBTITLE; 21
AND 22
(II) PAY THE ADMINISTRATI VE COSTS OF THE PROGRAM. 23
(2) DURING EACH FISCAL YE AR, THE DEPARTMENT MAY USE NO T 24
MORE THAN 10% OF THE MONEY APPROPR IATED TO THE FUND TO ADMINISTER TH E 25
PROGRAM. 26
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 27
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE IN VESTED. 28 HOUSE BILL 552 7
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 1
THE FUND. 2
(H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 3
WITH THE STATE BUDGET . 4
5–2306. 5
ON OR BEFORE JULY 1, 2026, THE DEPARTMENT SHALL REPO RT TO THE 6
GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 7
ARTICLE, THE GENERAL ASSEMBLY ON THE PROJE CTS FUNDED THROUGH A ND THE 8
ECONOMIC IMPACT OF T HE PROGRAM. 9
5–2307. 10
THE SECRETARY MAY ADOPT R EGULATIONS TO CARRY OUT THIS SUBTITLE. 11
Article – State Finance and Procurement 12
6–226. 13
(a) (2) (i) Notwithstanding any other provision of law, and unless 14
inconsistent with a federal law, grant agreement, or other federal requirement or with the 15
terms of a gift or settlement agreement, net interest on all State money allocated by the 16
State Treasurer under this section to special funds or accounts, and otherwise entitled to 17
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 18
Fund of the State. 19
(ii) The provisions of subparagraph (i) of this paragraph do not apply 20
to the following funds: 21
170. the Cannabis Public Health Fund; [and] 22
171. the Community Reinvestment and Repair Fund; AND 23
172. THE BUILD OUR FUTURE GRANT FUND. 24
SECTION 2. AND BE IT FURTHER ENACTED, That, on termination of this Act, 25
all funds remaining in the Build Our Future Grant Fund under § 5–2305 of the Economic 26
Development Article, as enacted by Section 1 of this Act, shall revert to the General Fund 27
of the State. 28
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 29
1, 2023. It shall remain effective for a period of 4 years and, at the end of June 30, 2027, 30 8 HOUSE BILL 552
this Act, with no further action required by the General Assembly, shall be abrogated and 1
of no further force and effect. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.