WES MOORE, Governor Ch. 439
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Chapter 439
(House Bill 695)
AN ACT concerning
Rural Maryland Prosperity Investment Fund – Revisions and Sunset Repeal
Allocation of Grants
(Rural Communities Improvement Act of 2023)
FOR the purpose of altering certain allocations of disbursements from the Rural Maryland
Prosperity Investment Fund; authorizing the allocation of grants from the Rural
Maryland Prosperity Investment Fund for certain business and workforce
development activities; requiring the Executive Committee of the Executive Board
for the Rural Maryland Council to agree to a reallocation of funds between grant
categories before the Maryland Agricultural Education and Rural Development
Assistance Board may reallocate the funds; requiring the Governor, beginning in a
certain fiscal year, to appropriate a certain amount of money to the Fund annually;
repealing the termination date of certain provisions of law establishing the Fund;
and generally relating to the Rural Maryland Prosperity Fund.
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 2–207
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Chapter 621 of the Acts of the General Assembly of 2006, as amended by Chapters
469 and 470 of the Acts of the General Assembly of 2014
Section 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAN D,
That the Laws of Maryland read as follows:
Article – State Finance and Procurement
2–207.
(a) (1) In this section the following words have the meanings indicated.
(2) “Agriculture” means the commercial production, storage, processing,
marketing, distribution, or export of an agronomic, aquacultural, equine, floricultural,
horticultural, ornamental, silvicultural, or viticultural crop, including:
(i) farm products;
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(ii) livestock and livestock products;
(iii) poultry and poultry products;
(iv) milk and dairy products;
(v) timber and forest products;
(vi) fruit and horticultural products; and
(vii) seafood and aquacultural products.
(3) “Board” means the Maryland Agricultural Education and Rural
Development Assistance Board established under § 2–206(e) of this subtitle.
(4) “COOPERATIVE DEVELOPME NT” MEANS ACTIVITIES TO SUPPORT
THE CREATION OR GROW TH OF A BUSINESS COO PERATIVE, INCLUDING SUPPORT
FOR:
(I) BUSINESS FEASIBILITY STUDIES;
(II) INDUSTRY STUDIES ;
(III) MARKET STUDIES ;
(IV) THE ESTABLISHMENT OF BUSINESS ENTITIES ; AND
(V) ADMINISTRATION OF TH E BUSINESS COOPERATI VE.
[(4)] (5) “Council” means the Rural Maryland Council established under
Title 13, Subtitle 4 of the Economic Development Article.
(6) “EXECUTIVE BOARD” MEANS THE EXECUTIVE BOARD
ESTABLISHED UNDER § 13–407 OF THE ECONOMIC DEVELOPMENT ARTICLE FOR
THE COUNCIL.
(7) “EXECUTIVE COMMITTEE” MEANS THE EXECUTIVE COMMITTEE
OF THE EXECUTIVE BOARD, AS ESTABLISHED IN TH E BYLAWS OF THE COUNCIL.
[(5)] (8) (6) “Fund” means the Rural Maryland Prosperity Investment Fund
established under this section.
[(6)] (9) (7) “Regional councils” means:
(i) the Mid–Shore Regional Council; WES MOORE, Governor Ch. 439
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(ii) the Tri–County Council for the Lower Eastern S hore of
Maryland;
(iii) the Tri–County Council for Southern Maryland;
(iv) the Tri–County Council for Western Maryland; and
(v) the Upper Shore Regional Council.
[(7)] (10) (8) “Rural area” means:
(i) the following counties:
1. Allegany;
2. Calvert;
3. Caroline;
4. Carroll;
5. Cecil;
6. Charles;
7. Dorchester;
8. Frederick;
9. Garrett;
10. Harford;
11. Kent;
12. Queen Anne’s;
13. St. Mary’s;
14. Somerset;
15. Talbot;
16. Washington;
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17. Wicomico; and
18. Worcester; and
(ii) portions of other counties in close proximity to agricultural
activity.
[(8)] (11) (9) “Rural community” means an incorporated or unincorporated
area of a county or group of counties in a rural area.
(12) (10) “WORKFORCE DEVELOPMENT ” MEANS ACTIVITIES TO :
(I) ASSIST WORKERS WITH OBTAINING TRAINING I N THE
NECESSARY SKILLS REQ UIRED BY LOCAL EMPLO YERS; AND
(II) ASSIST COMMUNITY COL LEGES, CAREER AND TECHNICAL
EDUCATION CENTERS , LOCAL WORKFORCE BOAR DS, AND SIMILAR ORGANIZA TIONS
WITH EFFORTS TO PROV IDE TRAINING PROGRAM S CONSISTENT WITH IT EM (I) OF
THIS PARAGRAPH .
(b) The General Assembly finds that:
(1) many rural communities in the State face a host of difficult challenges
relating to persistent unemployment and poverty, changing technological and economic
conditions, an aging population and an out–migration of youth, inadequate access to quality
housing, health care and other services, and deteriorating or inadequate transportation,
communications, sanitation, and economic development infrastructure;
(2) Maryland’s agricultural and resource–based industries continue to
underpin the local economies of rural communities but are increasingly under threat from
national and international market competition, urban encroachment and land development
pressure, and environmental and regulatory influences;
(3) local governments, regional organizations, educational institutions,
and private sector service providers have been unable to meet all the economic
development, community development, health care, and human services needs of Maryland
residents in the rural counties and municipal corporations because of a lack of adequate
available capacity and resources;
(4) the objective of the Rural Maryland Prosperity Investment Fund is to
help raise the overall standard of living in rural areas to a level that meets or exceeds
statewide benchmark averages [by 2030,] while preserving the best aspects of a pastoral
heritage and rural way of life;
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(5) resources provided to the Fund are designed to facilitate significant
targeted investments in important economic, health care, and community development
programs and promote regional and intergovernmental cooperation;
(6) these investments will also enable local and regional public and
nonprofit organizations to leverage additional nonstate financial and human resources to
facilitate the realization of sustainable rural development objectives while the program is
in effect; and
(7) the Fund will serve the interests of the entire State by:
(i) encouraging the increase of entrepreneurial activity and
commerce and a balanced economy in the State;
(ii) relieving conditions of unemployment and underemployment in
rural areas;
(iii) assisting in the retention of valuable farm and forest land for
productive use by present and future generations;
(iv) promoting intergovernmental cooperation and public
sector/private sector partnerships in and between rural and other areas;
(v) enhancing the deployment of housing, transportation, water,
wastewater, and broadband communications infrastructure and services in rural areas;
(vi) supporting rural commercial center redevelopment and
community revitalization efforts; and
(vii) generally promoting the health, happiness, safety, employment
opportunity, and general welfare of the residents of each of the rural counties and
municipal corporations of the State.
(c) (1) There is a Rural Maryland Prosperity Investment Fund.
(2) The Fund is administered by the Rural Maryland Council with the
assistance of the Board.
(3) The purpose of the Fund is to provide funding to rural regional and
statewide planning and development organizations, institutions of higher education
serving rural communities, rural community development organizations, and local
governments acting in partnership with one another to promote the quality of life in rural
areas.
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(d) (1) Each year, beginning in fiscal year 2008 and continuing through fiscal
year [2030] 2024, the Governor may include an appropriation in the budget bill for the
Fund.
(2) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER ,
THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION
OF AT LEAST $1,000,000 TO THE FUND, TO BE USED FOR THE D ISBURSEMENTS
REQUIRED UNDER SUBSE CTION (F)(2) OF THIS SECTION.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to reversion
under § 7–302 of this article.
(2) The Treasurer shall separately hold and the Comptroller shall account
for the Fund.
(3) The Treasurer may invest money in the Fund in the same manner as
other State money may be invested.
(f) (1) Except as provided in paragraph (2) of this subsection, disbursements
of money appropriated to the Fund shall be allocated in the following manner:
(i) one–third shall be allocated equally to the five regional councils
as grants for rural regional planning and development assistance, by targeting support to
the[:
1.] regional councils serving rural areas; and
[2. multicounty efforts serving rural communities in areas not
served by the regional councils; and]
(ii) the remaining two–thirds shall be allocated equally as grants
among the following categories:
1. regional infrastructure projects that directly involve two
or more units of local government, not to exceed one–fourth of the total cost of any
particular project;
2. rural entrepreneurship AND AGRICULTURAL
development, including:
A. programs and activities serving rural communities
undertaken by nonprofit organizations and institutions of higher education;
B. COOPERATIVE DEVELOPM ENT; AND
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C. WORKFORCE DEVELOPMEN T;
3. rural community development, programmatic assistance,
and education, with money to be divided equally between the Council and the Maryland
Agricultural Education and Rural Development Assistance Fund; and
4. rural health care organizations.
(2) If in any fiscal year revenues appropriated to the Fund are insufficient
to fully fund all grants under paragraph (1) of this subsection, disbursements of money
appropriated to the Fund shall be allocated as follows:
(i) [$500,000] $1,000,000 shall be allocated to the Council, of
which:
1. [$250,000] $750,000 shall be used to support the
operations of the Council; and
2. $250,000 shall be allocated to the Maryland Agricultural
Education and Rural Development Assistance Fund established under § 2–206 of this
subtitle; and
(ii) the remaining disbursements of money appropriated to the Fund
shall be allocated in the manner described in paragraph (1) of this subsection.
(g) (1) Any money received by a regional council under subsection (f)(1)(i) of
this section shall be used to benefit rural areas as the regional council determines.
(2) (i) Subject to subparagraph (ii) of this paragraph, the Board shall
award grants from the Fund under subsection (f)(1)(ii) of this section on a competitive basis
in accordance with the procedures in § 2–206(e) of this subtitle.
(ii) Any money received by the Council under subsection (f)(1)(ii) of
this section shall be used to help administer the Fund and perform other functions that
benefit rural areas as the Council determines.
(3) A grant recipient shall submit to the Council written documentation of
how the grant recipient spent or otherwise used the grant.
(h) The Board may reallocate money from one category listed in subsection
(f)(1)(ii) of this section to another category only if:
(1) there is a lack of sufficient applications requesting use of money in a
particular category; AND
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(2) THE EXECUTIVE COMMITTEE CONCURS WIT H THE
REALLOCATION .
(i) (1) On or before October 1 of each year, the Council shall submit a report
to the Governor and, in accordance with § 2–1257 of the State Government Article, the
General Assembly.
(2) The report shall summarize the activities of the Fund during the
preceding fiscal year, including:
(i) the number of grants made during the fiscal year;
(ii) the names of the recipients of the grants;
(iii) the specific purpose of each grant awarded; and
(iv) documentation of how the grant recipient spent or otherwise
used the grant.
Chapter 621 of the Acts of 2006, as amended by Chapters 469 and 470 of the Acts
of 2014
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2006. [It shall remain effective for a period of 24 years and, at the end of June 30, 2030,
with no further action required by the General Assembly, this Act shall be abrogated and
of no further force and effect.]
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2023.
Approved by the Governor, May 8, 2023.