EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0653*
HOUSE BILL 653
C8 3lr1492
HB 892/21 – W&M
By: Delegate Buckel
Introduced and read first time: February 6, 2023
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Economic Development – Maryland Technology Infrastructure Pilot Program – 2
Establishment 3
FOR the purpose of establishing the Maryland Technology Infrastructure Pilot Program in 4
the Maryland Technology Development Corporation to support and incentivize 5
advance industry infrastructure and resources that build on the existing strengths 6
of the Western Maryland economy ; establishing the Maryland Technology 7
Infrastructure Authority to provide advice and consultation for the administration 8
of the Program; establishing the Maryland Technology Infrastructure Fund as a 9
special, nonlapsing fund; requiring interest earnings of the Fund to be credited to 10
the Fund; and generally relating to the Maryland Technology Infrastructure Pilot 11
Program and the Maryland Technology Development Corporation. 12
BY adding to 13
Article – Economic Development 14
Section 10–4D–01 through 10–4D–10 to be under the new subtitle “Subtitle 4D. 15
Maryland Technology Infrastructure Pilot Program” 16
Annotated Code of Maryland 17
(2018 Replacement Volume and 2022 Supplement) 18
BY repealing and reenacting, without amendments, 19
Article – State Finance and Procurement 20
Section 6–226(a)(2)(i) 21
Annotated Code of Maryland 22
(2021 Replacement Volume and 2022 Supplement) 23
BY repealing and reenacting, with amendments, 24
Article – State Finance and Procurement 25
Section 6–226(a)(2)(ii)170. and 171. 26
Annotated Code of Maryland 27
(2021 Replacement Volume and 2022 Supplement) 28 2 HOUSE BILL 653
BY adding to 1
Article – State Finance and Procurement 2
Section 6–226(a)(2)(ii)172. 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2022 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Economic Development 8
SUBTITLE 4D. MARYLAND TECHNOLOGY INFRASTRUCTURE PILOT PROGRAM. 9
10–4D–01. 10
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 11
INDICATED. 12
(B) “AUTHORITY” MEANS THE MARYLAND TECHNOLOGY 13
INFRASTRUCTURE AUTHORITY. 14
(C) “CORPORATION ” MEANS THE MARYLAND TECHNOLOGY 15
DEVELOPMENT CORPORATION . 16
(D) “FINANCIAL ASSISTANCE” MEANS A GRANT , A LOAN, A CREDIT 17
ENHANCEMENT , AN INVESTMENT , OR SIMILAR ASSISTANC E. 18
(E) “FUND” MEANS THE MARYLAND TECHNOLOGY INFRASTRUCTURE 19
FUND. 20
(F) “PROGRAM” MEANS THE MARYLAND TECHNOLOGY INFRASTRUCTURE 21
PILOT PROGRAM. 22
(G) “PROJECT” MEANS A LARGE –SCALE, TRANSFORMATIVE 23
INFRASTRUCTURE INITI ATIVE INTENDED TO PR OMOTE THE DEVELOPMEN T AND 24
GROWTH OF INNOVATION –BASED BUSINESS IN WESTERN MARYLAND. 25
(H) “WESTERN MARYLAND” MEANS ALLEGANY COUNTY, GARRETT 26
COUNTY, AND WASHINGTON COUNTY. 27
10–4D–02. 28
(A) THERE IS A MARYLAND TECHNOLOGY INFRASTRUCTURE PILOT 29
PROGRAM IN THE CORPORATION . 30 HOUSE BILL 653 3
(B) THE PURPOSE OF THE PROGRAM IS TO: 1
(1) ESTABLISH A PROGRAM IN WESTERN MARYLAND TO SUPPORT 2
THE INNOVATION ECONO MY BY INCENTIVIZING THE DEVELOPMENT OF A DVANCED 3
INDUSTRY INFRASTRUCT URE AND RESOURCES TH AT BUILD ON THE EXIS TING 4
STRENGTHS OF THE REG ION’S ECONOMY; 5
(2) SUPPORT THE GROWTH O F AND INCENTIVIZE TH E ATTRACTION 6
AND RETE NTION OF EARLY –STAGE INNOVATION –BASED BUSINESS IN WESTERN 7
MARYLAND THROUGH THE CREATION OF SUPPORTI NG INFRASTRUCTURE AN D 8
RESOURCES; 9
(3) MANAGE A MARYLAND TECHNOLOGY INFRASTRUCTURE FUND 10
FOR FINANCIAL ASSIST ANCE IN PROJECTS TO SUPPORT THE PROGRAM; AND 11
(4) EVALUATE THE EFFICAC Y OF THE PROGRAM FOR FUTURE 12
EXPANSION TO OTHER P ARTS OF THE STATE. 13
10–4D–03. 14
(A) THERE IS A MARYLAND TECHNOLOGY INFRASTRUCTURE AUTHORITY 15
IN THE CORPORATION . 16
(B) THE CORPORATION SHALL PRO VIDE STAFF TO THE AUTHORITY AND 17
MAY EMPLOY OR CONTRACT WITH EXPERTS TO ASSIST WI TH THE ADMINISTRATIO N 18
AND MANAGEMENT OF TH E PROGRAM. 19
10–4D–04. 20
(A) THE AUTHORITY CONSISTS OF THE FOLLOWING MEMBER S: 21
(1) THREE MEMBERS APPOINTED BY THE GOVERNOR: 22
(I) TWO OF WHOM ARE ENTREPRENEURS OR BUSINESS 23
OWNERS IN WESTERN MARYLAND; AND 24
(II) ONE OF WHOM HAS EXPE RIENCE IN VENTURE CA PITAL OR 25
ECONOMIC DEVELOPMENT ; 26
(2) THE PRESIDENT OF FROSTBURG STATE UNIVERSITY, OR THE 27
PRESIDENT’S DESIGNEE; 28
(3) THE PRESIDENT OF A C OMMUNITY COLLEGE LOC ATED IN 29 4 HOUSE BILL 653
WESTERN MARYLAND, OR THE PRESIDENT ’S DESIGNEE, APPOINTED BY THE 1
MARYLAND ASSOCIATION OF COMMUNITY COLLEGES; AND 2
(4) THE EXECUTIVE DIRECTOR OF THE CORPORATION , OR THE 3
EXECUTIVE DIRECTOR’S DESIGNEE. 4
(B) EACH MEMBER SHALL BE A RESIDENT OF THE STATE. 5
10–4D–05. 6
(A) (1) THREE MEMBERS OF THE AUTHORITY ARE A QUORU M. 7
(2) AN ACT OF THE AUTHORITY MUST BE APP ROVED BY A MAJORITY 8
VOTE OF THE MEMBERS ATTENDING A MEETING AT WHICH A QUORUM IS PRESENT. 9
(B) A MEMBER OF THE AUTHORITY: 10
(1) MAY NOT RECEIVE COMPENSATION AS A ME MBER OF THE 11
AUTHORITY; BUT 12
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 13
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 14
(C) A MEMBER OF THE AUTHORITY SHALL FILE AN ANNUAL PUBLIC 15
DISCLOSURE OF FINANC IAL INTERESTS AS REQ UIRED UNDER THE MARYLAND 16
PUBLIC ETHICS LAW. 17
(D) EACH MEMBER OF THE AUTHORITY SHALL DISCL OSE TO THE STATE 18
ETHICS COMMISSION WHETHER TH E MEMBER IS EMPLOYED BY OR HAS A FINANCIAL 19
INTEREST IN AN ENTIT Y THAT MAY APPLY FOR FUNDING FROM THE FUND. 20
10–4D–06. 21
THE AUTHORITY SHALL PROVI DE ADVICE TO AND CON SULT WITH THE 22
CORPORATION IN CONNEC TION WITH THE ADMINI STRATION OF THE PROGRAM 23
UNDER THIS SUBTITLE . 24
10–4D–07. 25
(A) THERE IS A MARYLAND TECHNOLOGY INFRASTRUCTURE FUND IN THE 26
CORPORATION . 27
(B) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 28
SUBJECT TO REVERSION UNDER § 7–302 OF THE STATE FINANCE AND 29 HOUSE BILL 653 5
PROCUREMENT ARTICLE. 1
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 2
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 3
(C) THE FUND CONSISTS OF : 4
(1) APPROPRIATIONS AS PR OVIDED IN THE STATE BUDGET ; 5
(2) ANY INTEREST EARNING S OF THE FUND; AND 6
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 7
THE BENEFIT OF THE PROGRAM. 8
(D) THE EXECUTIVE DIRECTOR OF THE CORPORATION , OR THE EXECUTIVE 9
DIRECTOR’S DESIGNEE, SHALL ADMINISTER THE FUND IN ACCORDANCE WI TH THIS 10
SUBTITLE AND ANY OTH ER APPLICABLE LAW . 11
(E) THE FUND SHALL BE USED TO COVER THE COSTS OF T HE PROGRAM, 12
INCLUDING: 13
(1) ANY ADMINISTRATIVE C OSTS; AND 14
(2) ANY FINANCIAL ASSIST ANCE THAT IS AWARDED TO ELIGIBLE 15
RECIPIENTS. 16
(F) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 17
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 18
(2) ANY INVESTMENT EARNIN GS OF THE FUND SHALL BE CREDITE D 19
TO THE FUND. 20
(G) THE ACCOUNT AND TRANS ACTIONS OF THE FUND ARE SUBJECT TO 21
AUDIT BY THE OFFICE OF LEGISLATIVE AUDITS AS PROVIDED IN § 2–1220 OF THE 22
STATE GOVERNMENT ARTICLE. 23
10–4D–08. 24
(A) WITHIN THE PROGRAM, SUBJECT TO AVAILABLE FUNDING, AND ON THE 25
RECOMMENDATION OF TH E AUTHORITY, THE CORPORATION SHALL AWA RD 26
FINANCIAL ASSISTANCE FROM THE FUND TO PUBLIC OR PRI VATE ENTITIES IN THE 27
STATE, INCLUDING INSTITUTIO NS OF HIGHER EDUCATI ON, TO: 28
(1) SUPPORT LARGE –SCALE INFRASTRUCTURE OR RESOURCE 29 6 HOUSE BILL 653
PROJECTS IN WESTERN MARYLAND TO ATTRACT T ALENT, FOSTER 1
COLLABORATION , AND ENABLE CONCENTRA TION AND GROWTH OF A DVANCED 2
INDUSTRIES; 3
(2) FOSTER PUBLIC –PRIVATE COLLABORATIO NS TO ENCOURAGE 4
DEVELOPMENT OF SHARE D INFRASTRUCTURE AND R ESOURCES; AND 5
(3) SUPPORT TALENT DEVEL OPMENT INITIATIVES T HAT ADDRESS 6
CRITICAL SKILL SHORT AGE AREAS IN INDUSTR IES CRITICAL TO GROW TH IN 7
WESTERN MARYLAND. 8
(B) THE FUND MAY NOT CONTRIBU TE MORE THAN : 9
(1) ONE–THIRD OF THE TOTAL COST OF THE PROJECT ; OR 10
(2) $500,000 PER PROJECT. 11
10–4D–09. 12
(A) THE AUTHORITY SHALL ADOPT REGULATIONS TO ESTAB LISH: 13
(1) A COMPETITIVE APPLIC ATION PROCESS ; AND 14
(2) CRITERIA AND PROCEDU RES FOR AWARDING FIN ANCIAL 15
ASSISTANCE FROM THE FUND TO ELIGIBLE RECIPIENTS, INCLUDING CRITERIA T HAT 16
EXAMINE: 17
(I) THE PROJECT ’S POTENTIAL IMPACT O N THE LOCAL 18
ECONOMY; 19
(II) THE PROJECT ’S LIKELIHOOD TO FOST ER JOB CREATION ; 20
AND 21
(III) CAPITAL INVESTMENT I N THE PROJECT . 22
(B) (1) IN ACCORDANCE WITH TH IS SUBTITLE, ALL PRIVATE SECTOR 23
ENTITIES IN THE STATE AND ALL INSTITU TIONS OF HIGHER EDUC ATION IN THE 24
STATE MAY BE ELIGIBLE RECIPIENTS OF FINANC IAL ASSISTANCE. 25
(2) PRIORITY FOR THE AWAR D OF ANY FINANCIAL A SSISTANCE SHALL 26
BE GIVEN TO THOSE PR OJECTS MOST LIK ELY TO: 27
(I) ATTRACT SIGNIFICANT INVESTMENT IN THE STATE; 28
(II) RESULT IN SIGNIFICAN T COMPANY FORMATION , 29 HOUSE BILL 653 7
EXPANSION, OR JOB CREATION ; OR 1
(III) RESULT IN MEANINGFUL ECONOMIC AND EMPLOYM ENT 2
DEVELOPMENT IN WESTERN MARYLAND. 3
10–4D–10. 4
ON OR BEFORE JULY 1, 2027, THE CORPORATION SHALL REP ORT TO THE 5
GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 6
ARTICLE, ON THE IMPLEMENTATIO N OF THE PROGRAM AND SHALL MAK E 7
RECOMMENDATIONS ON T HE EXPANSION OF THE PROGRAM TO A STATEWID E 8
PROGRAM. 9
Article – State Finance and Procurement 10
6–226. 11
(a) (2) (i) Notwithstanding any other provision of law, and unless 12
inconsistent with a federal law, grant agreement, or other federal requirement or with the 13
terms of a gift or settlement agreement, net interest on all State money allocated by the 14
State Treasurer under this section to special funds or accounts, and otherwise entitled to 15
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 16
Fund of the State. 17
(ii) The provisions of subparagraph (i) of this paragraph do not apply 18
to the following funds: 19
170. the Cannabis Public Health Fund; [and] 20
171. the Community Reinvestment and Repair Fund; AND 21
172. THE MARYLAND TECHNOLOGY INFRASTRUCTURE 22
FUND. 23
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 24
1, 2023. It shall remain effective for a period of 5 years and, at the end of June 30, 2028, 25
this Act, with no further action required by the General Assembly, shall be abrogated and 26
of no further force and effect. 27