EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0549*
SENATE BILL 549
C8 3lr0126
CF HB 552
By: The President (By Request – Administration) and Senators Augustine, Beidle,
Benson, Carozza, Carter, Elfreth, Ellis, Feldman, Gile, Hester, Hettleman,
Jackson, James, King, Klausmeier, Muse, Sydnor, Waldstreicher, Watson,
and West
Introduced and read first time: February 6, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
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
Article – Economic Development 16
Section 5–2301 through 5–2307 to be under the new subtitle “Subtitle 23. Build Our 17
Future Grant Pilot Program” 18
Annotated Code of Maryland 19
(2018 Replacement Volume and 2022 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – State Finance and Procurement 22
Section 6–226(a)(2)(i) 23
Annotated Code of Maryland 24 2 SENATE BILL 549
(2021 Replacement Volume and 2022 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – State Finance and Procurement 3
Section 6–226(a)(2)(ii)170. and 171. 4
Annotated Code of Maryland 5
(2021 Replacement Volume and 2022 Supplement) 6
BY adding to 7
Article – State Finance and Procurement 8
Section 6–226(a)(2)(ii)172. 9
Annotated Code of Maryland 10
(2021 Replacement Volume and 2022 Supplement) 11
SECTION 1. AND BE IT ENACTED BY THE GENERAL ASSEMBLY OF 12
MARYLAND, That the Laws of Maryland read as follows: 13
Article – Economic Development 14
5–102. 15
The Department shall administer the State’s economic development and financial 16
assistance programs and funds including: 17
(1) the BRAC Revitalization and Incentive Zone Program, under Subtitle 18
13 of this title; 19
(2) THE BUILD OUR FUTURE GRANT PILOT PROGRAM, UNDER 20
SUBTITLE 23 OF THIS TITLE; 21
(3) the Enterprise Fund, under Subtitle 6 of this title; 22
[(3)] (4) the Enterprise Zones Program, under Subtitle 7 of this title; 23
[(4)] (5) the Make Office Vacancies Extinct Program, under Subtitle 15 of 24
this title; 25
[(5)] (6) the Maryland Economic Adjustment Fund, under Subtitle 2 of 26
this title; 27
[(6)] (7) the Maryland Economic Development Assistance Authority and 28
Fund, under Subtitle 3 of this title; 29
[(7)] (8) the Maryland Industrial Development Financing Authority, 30
under Subtitle 4 of this title; 31
SENATE BILL 549 3
[(8)] (9) the Maryland Small Business Development Financing Authority, 1
under Subtitle 5 of this title; 2
[(9)] (10) the Appalachian Regional Development Program, under Title 13, 3
Subtitle 1 of this article; 4
[(10)] (11) jointly with the Department of Housing and Community 5
Development, the Community Development Block Grant for Economic Development; 6
[(11)] (12) the Regional Institution Strategic Enterprise Zone Program 7
under Subtitle 14 of this title; and 8
[(12)] (13) any other programs or funds designated by statute, the 9
Governor, or the Secretary. 10
SUBTITLE 23. BUILD OUR FUTURE GRANT PILOT PROGRAM. 11
5–2301. 12
(A) IN THIS SUBTITLE THE FO LLOWING WORDS HAVE T HE MEANINGS 13
INDICATED. 14
(B) “FUND” MEANS THE BUILD OUR FUTURE GRANT FUND. 15
(C) “PROGRAM” MEANS THE BUILD OUR FUTURE GRANT PILOT PROGRAM. 16
5–2302. 17
(A) THERE IS A BUILD OUR FUTURE GRANT PILOT PROGRAM IN THE 18
DEPARTMENT . 19
(B) THE PURPOSE OF THE PROGRAM IS TO PROVIDE GRANT FUNDING FOR 20
INFRASTRUCTURE PROJE CTS INTENDED TO SUPP ORT INNOVATION IN AN ELIGIBLE 21
TECHNOLOGY SECTOR . 22
(C) GRANTS MAY BE AWARDED TO PRIVATE COMPANIES , NONPROFIT 23
ENTITIES, LOCAL GOVERNMENTS , OR COLLEGES AND UNIV ERSITIES IN THE STATE. 24
(D) THE DEPARTMENT SHALL ADMI NISTER THE PROGRAM. 25
5–2303. 26
(A) TO CARRY OUT THE PURP OSE OF THE PROGRAM, THE DEPARTMENT 27
MAY AWARD GRANTS IN ACCORDANCE WITH THIS SUBTITLE TO APPROVED 28 4 SENATE BILL 549
RECIPIENTS CARRYING OUT INFRASTRUCTURE P ROJECTS INTENDED TO SUPPORT 1
INNOVATION IN ANY OF THE FOLLOWING ELIGIB LE TECHNOLOGY SECTOR S: 2
(1) ADVANCED MANUFACTURING ; 3
(2) AEROSPACE; 4
(3) AGRICULTURE ; 5
(4) ARTIFICIAL INTELLIGE NCE; 6
(5) BIOTECHNOLOGY ; 7
(6) BLUE TECHNOLOGY ; 8
(7) CYBERSECURITY ; 9
(8) DEFENSE; 10
(9) ENERGY AND SUSTAINAB ILITY; 11
(10) LIFE SCIENCES; 12
(11) QUANTUM; AND 13
(12) SENSOR AND ROBOTICS . 14
(B) EXAMPLES OF ELIGIBLE PROJECTS INCLUDE : 15
(1) SECURE COMPARTMENTALIZED IN FORMATION FACILITIES ; 16
(2) WET LABORATORIES ; 17
(3) CYBER RANGES ; 18
(4) PROTOTYPE MANUFACTUR ING CENTERS; AND 19
(5) OTHER SPECIALIZED WO RKFORCE TRAINING , SKILL 20
CERTIFICATION , OR RESEARCH –RELATED SPACES . 21
(C) GRANT AWARDS MAY BE U SED TO DEFRAY THE COST A GRANTEE INCURS 22
TO ACQUIRE , CONSTRUCT , REHABILITATE , INSTALL, IMPROVE, OR EQUIP AN 23
ELIGIBLE INNOVATION INFRASTRUCTURE PROJE CT. 24 SENATE BILL 549 5
(D) (1) A SINGLE ENTITY MAY BE AWARDE D NOT MORE THAN $2,000,000 1
IN GRANT FUNDS IN A FISCAL YEAR. 2
(2) (I) FOR A GRANT AWARD UP TO $1,000,000, A GRANTEE SHALL 3
PROVIDE MATCHING FUNDS THAT ARE AT LEAST 200% OF THE GRANT AMOUNT . 4
(II) FOR A GRANT AWARD EXCEED ING $1,000,000, AND UP TO 5
$2,000,000, A GRANTEE SHALL PROV IDE MATCHING FUNDS T HAT ARE AT LEAST 6
400% OF THE GRANT AMOUNT . 7
(III) FUNDS RECEIVED BY A GRANTE E THROUGH OTHER STATE 8
GRANT PROGRAMS ARE N OT COUNTED TOWARD TH E GRANTEE’S MATCHING FUNDS 9
REQUIREMENT . 10
(3) A GRANTEE MUST DEMONSTR ATE AN ABILITY TO CO VER THE FULL 11
ESTIMATED COSTS OF T HE PROJECT FOR WHICH THE GRANT IS A WARDED. 12
(4) (I) NOT MORE THAN 50% OF THE APPROPRIATION TO THE 13
FUND IN A FISCAL YEAR MAY BE AWARDED TO COLLEG ES AND UNIVERSITIES IN 14
THAT FISCAL YEAR . 15
(II) GRANTS TO COLLEGES AND UNIV ERSITIES FROM THE FUND 16
MUST BE AWARDED TO P ROJECTS THAT: 17
1. ARE PERFORMED IN COL LABORATION WITH PRIV ATE 18
INDUSTRY; OR 19
2. OFFER THE PROSPECT O F SIGNIFICANT ECONOM IC 20
IMPACT AND THE OPPOR TUNITY TO DEVELOP EN TREPRENEURSHIP OR CL USTERS 21
OF TECHNOLOGICAL INN OVATION IN THE STATE. 22
5–2304. 23
A GRANTEE MAY BE SUBJECT TO REPAYMENT OF THE GRA NT IN AN AMOUNT 24
DETERMINED BY THE DEPARTMENT IF THE GRA NTEE FAILS TO: 25
(1) COMPLY WITH REPORTIN G REQUIREMENTS ESTAB LISHED BY THE 26
DEPARTMENT ; OR 27
(2) DEMONSTRATE APPROPRI ATE USE OF GRANT FUN DS. 28
5–2305. 29 6 SENATE BILL 549
(A) THERE IS A BUILD OUR FUTURE GRANT FUND. 1
(B) THE DEPARTMENT SHALL ADMINISTER THE FUND. 2
(C) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS FOR 3
INFRASTRUCTURE PROJE CTS TO SUPPORT INNOV ATION IN ELIGIBLE TE CHNOLOGY 4
SECTORS UNDER THIS S UBTITLE. 5
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 6
SUBJECT TO REVERSION UNDER § 7–302 OF THE STATE FINANCE AND 7
PROCUREMENT ARTICLE. 8
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY, 9
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 10
(E) THE FUND CONSISTS OF: 11
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 12
(2) ANY INTEREST EARNING S OF THE FUND; AND 13
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 14
THE BENEFIT OF THE FUND. 15
(F) (1) THE FUND MAY BE USED TO : 16
(I) PROVIDE GRANTS IN ACCORDANCE WITH T HIS SUBTITLE; 17
AND 18
(II) PAY THE ADMINISTRATI VE COSTS OF THE PROGRAM. 19
(2) DURING EACH FISCAL YE AR, THE DEPARTMENT MAY USE NOT 20
MORE THAN 10% OF THE MONEY APPROPR IATED TO THE FUND TO ADMINISTER THE 21
PROGRAM. 22
(G) (1) THE STATE TREASURER SHALL INVEST TH E MONEY OF THE FUND 23
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 24
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 25
THE FUND. 26
SENATE BILL 549 7
(H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 1
WITH THE STATE BUDGET . 2
5–2306. 3
ON OR BEFORE JULY 1, 2026, THE DEPARTMENT SHALL REPO RT TO THE 4
GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 5
ARTICLE, THE GENERAL ASSEMBLY ON THE PROJECTS FUND ED THROUGH AND THE 6
ECONOMIC IMPACT OF T HE PROGRAM. 7
5–2307. 8
THE SECRETARY MAY ADOPT R EGULATIONS TO CARRY OUT THIS SUBTITLE. 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 BUILD OUR FUTURE GRANT FUND. 22
SECTION 2. AND BE IT FURTHER ENACTED, That , on termination of this Act, 23
all funds remaining in the Build Our Future Grant Fund under § 5–2305 of the Economic 24
Development Article, as enacted by Section 1 of this Act, shall revert to the General Fund 25
of the State. 26
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
1, 2023. It shall remain effective for a period of 4 years and, at the end of June 30, 2027, 28
this Act, with no further action required by the General Assembly, shall be abrogated and 29
of no further force and effect. 30