EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING 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.
*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 West, Bailey, Corderman, Guzzone, Jennings, McCray, Rosapepe,
Salling, and Zucker
Introduced and read first time: February 6, 2023
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 11, 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
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 2 SENATE BILL 549
(2018 Replacement Volume and 2022 Supplement) 1
BY repealing and reenacting, without amendments, 2
Article – State Finance and Procurement 3
Section 6–226(a)(2)(i) 4
Annotated Code of Maryland 5
(2021 Replacement Volume and 2022 Supplement) 6
BY repealing and reenacting, with amendments, 7
Article – State Finance and Procurement 8
Section 6–226(a)(2)(ii)170. and 171. 9
Annotated Code of Maryland 10
(2021 Replacement Volume and 2022 Supplement) 11
BY adding to 12
Article – State Finance and Procurement 13
Section 6–226(a)(2)(ii)172. 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2022 Supplement) 16
SECTION 1. AND BE IT ENACTED BY THE GENERAL ASSEMBLY OF 17
MARYLAND, That the Laws of Maryland read as follows: 18
Article – Economic Development 19
5–102. 20
The Department shall administer the State’s economic development and financial 21
assistance programs and funds including: 22
(1) the BRAC Revitalization and Incentive Zone Program, under Subtitle 23
13 of this title; 24
(2) THE BUILD OUR FUTURE GRANT PILOT PROGRAM, UNDER 25
SUBTITLE 23 OF THIS TITLE; 26
(3) the Enterprise Fund, under Subtitle 6 of this title; 27
[(3)] (4) the Enterprise Zones Program, under Subtitle 7 of this title; 28
[(4)] (5) the Make Office Vacancies Extinct Program, under Subtitle 15 of 29
this title; 30
[(5)] (6) the Maryland Economic Adjustment Fund, under Subtitle 2 of 31
this title; 32
SENATE BILL 549 3
[(6)] (7) the Maryland Economic Development Assistance Authority and 1
Fund, under Subtitle 3 of this title; 2
[(7)] (8) the Maryland Industrial Development Financing Authority, 3
under Subtitle 4 of this title; 4
[(8)] (9) the Maryland Small Business Development Financing Authority, 5
under Subtitle 5 of this title; 6
[(9)] (10) the Appalachian Regional Development Program, under Title 13, 7
Subtitle 1 of this article; 8
[(10)] (11) jointly with the Department of Housing and Community 9
Development, the Community Development Block Grant for Economic Development; 10
[(11)] (12) the Regional Institution Strategic Enterprise Zone Program 11
under Subtitle 14 of this title; and 12
[(12)] (13) any other programs or funds designated by statute, the 13
Governor, or the Secretary. 14
SUBTITLE 23. BUILD OUR FUTURE GRANT PILOT PROGRAM. 15
5–2301. 16
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18
(B) “FUND” MEANS THE BUILD OUR FUTURE GRANT FUND. 19
(C) “PROGRAM” MEANS THE BUILD OUR FUTURE GRANT PILOT PROGRAM. 20
5–2302. 21
(A) THERE IS A BUILD OUR FUTURE GRANT PILOT PROGRAM IN THE 22
DEPARTMENT . 23
(B) THE PURPOSE OF THE PROGRAM IS TO PROVIDE GRANT FUNDING FOR 24
INFRASTRUCTURE PROJE CTS INTENDED TO SUPP ORT INNOVATION IN AN ELIGIBLE 25
TECHNOLOGY SECTOR . 26
(C) GRANTS MAY BE AWARDED TO PRIVATE COMPANIES , NONPROFIT 27
ENTITIES, LOCAL GOVERNMENTS , OR COLLEGES AND UNIV ERSITIES IN THE STATE. 28
(D) THE DEPARTMENT SHALL ADMI NISTER THE PROGRAM. 29 4 SENATE BILL 549
5–2303. 1
(A) TO CARRY OUT THE PURP OSE OF THE PROGRAM, THE DEPARTMENT 2
MAY AWARD GRANTS IN A CCORDANCE WITH THIS SUBTITLE TO APPROVED 3
RECIPIENTS CARRYING OUT INFRASTRUCTURE P ROJECTS INTENDED TO SUPPORT 4
INNOVATION IN ANY OF THE FOLLOWING ELIGIB LE TECHNOLOGY SECTOR S: 5
(1) ADVANCED MANUFACTURI NG; 6
(2) AEROSPACE; 7
(3) AGRICULTURE ; 8
(4) ARTIFICIAL INTELLIGE NCE; 9
(5) BIOTECHNOLOGY ; 10
(6) BLUE TECHNOLOGY ; 11
(7) CYBERSECURITY ; 12
(8) DEFENSE; 13
(9) ENERGY AND SUSTAINAB ILITY; 14
(10) LIFE SCIENCES; 15
(11) QUANTUM; AND 16
(12) SENSOR AND ROBOTICS . 17
(B) EXAMPLES OF ELIGIBLE PROJECTS IN CLUDE: 18
(1) SECURE COMPARTMENTAL IZED SENSITIVE COMPARTMEN TED 19
INFORMATION FACILITI ES; 20
(2) WET LABORATORIES ; 21
(3) CYBER RANGES ; 22
(4) PROTOTYPE MANUFACTUR ING CENTERS; AND 23
(5) OTHER SPECIALIZED WO RKFORCE TRAINING , SKILL 24
CERTIFICATION , OR RESEARCH –RELATED SPACES . 25 SENATE BILL 549 5
(C) GRANT AWARDS MAY BE U SED TO DEFRAY THE CO ST A GRANTEE INCURS 1
TO ACQUIRE , CONSTRUCT , REHABILITATE , INSTALL, IMPROVE, OR EQUIP AN 2
ELIGIBLE INNOVATION INFRASTRUCTURE PROJE CT. 3
(D) (1) A SINGLE ENTITY MAY BE AWARDED NOT MORE THAN $2,000,000 4
IN GRANT FUNDS IN A FISCAL YEAR. 5
(2) (I) FOR A GRANT AWARD UP TO $1,000,000, A GRANTEE SHALL 6
PROVIDE MATCHING FUN DS THAT ARE AT LEAST 200% OF THE GRANT AMOUNT . 7
(II) FOR A GRANT AWARD EXC EEDING $1,000,000, AND UP TO 8
$2,000,000, A GRANTEE SHALL PROV IDE MATCHING FUNDS T HAT ARE AT LEAST 9
400% OF THE GRANT AMOUNT . 10
(III) FUNDS RECEIVED BY A G RANTEE THROUGH OTHER STATE 11
GRANT PROGRAMS ARE N OT COUNTED TOWARD TH E GRANTEE’S MATCHING FUNDS 12
REQUIREMENT . 13
(3) A GRANTEE MUST DEMO NSTRATE AN ABILITY T O COVER THE FULL 14
ESTIMATED COSTS OF T HE PROJECT FOR WHICH THE GRANT IS AWARDED . 15
(4) (I) NOT MORE THAN 50% OF THE APPROPRIATION TO THE 16
FUND IN A FISCAL YEAR MAY BE AWARDED TO CO LLEGES AND UNIVERSIT IES IN 17
THAT FISCAL YEAR . 18
(II) GRANTS TO COLLEGES AND UNIVERSITIES FROM TH E FUND 19
MUST BE AWARDED TO P ROJECTS THAT : 20
1. ARE PERFORMED IN COL LABORATION WITH PRIV ATE 21
INDUSTRY; OR 22
2. OFFER THE PROSPECT O F SIGNIFICANT ECONOM IC 23
IMPACT AND THE OPPOR TUNITY TO DEVELOP EN TREPRENEURSHIP OR CLUSTERS 24
OF TECHNOLOGICAL INN OVATION IN THE STATE. 25
5–2304. 26
A GRANTEE MAY BE SUBJE CT TO REPAYMENT OF T HE GRANT IN AN AMOUN T 27
DETERMINED BY THE DEPARTMENT IF THE GRA NTEE FAILS TO: 28
(1) COMPLY WITH REPORTIN G REQUIREMENTS ESTAB LISHED BY THE 29
DEPARTMENT ; OR 30
6 SENATE BILL 549
(2) DEMONSTRATE APPROPRI ATE USE OF GRANT FUN DS. 1
5–2305. 2
(A) THERE IS A BUILD OUR FUTURE GRANT FUND. 3
(B) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 4
(C) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS FOR 5
INFRASTRUCTURE PROJE CTS TO SUPPORT INNOV ATION IN ELIGIBLE TECHNOLOG Y 6
SECTORS UNDER THIS S UBTITLE. 7
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 8
SUBJECT TO REVERSION UNDER § 7–302 OF THE STATE FINANCE AND 9
PROCUREMENT ARTICLE. 10
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 11
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 12
(E) THE FUND CONSISTS OF : 13
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 14
(2) ANY INTEREST EARNING S OF THE FUND; AND 15
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 16
THE BENEFIT OF THE FUND. 17
(F) (1) THE FUND MAY BE USED TO : 18
(I) PROVIDE GRANTS IN AC CORDANCE WITH THIS S UBTITLE; 19
AND 20
(II) PAY THE ADMINISTRATI VE COSTS OF THE PROGRAM. 21
(2) DURING EACH FISCAL YE AR, THE DEPARTMENT MAY USE NO T 22
MORE THAN 10% OF THE MONEY APPROPR IATED TO THE FUND TO ADMINISTER TH E 23
PROGRAM. 24
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 25
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 26
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 27
THE FUND. 28
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 PROJE CTS FUNDED T HROUGH 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