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.
*sb0865*
SENATE BILL 865
C8 3lr2728
CF HB 768
By: Senators Corderman and McKay
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 10, 2023
CHAPTER ______
AN ACT concerning 1
Economic Development – Western Maryland Economic Future Investment 2
Board and Senator George C. Edwards Fund – Alterations 3
FOR the purpose of renaming altering the composition of the Western Maryland Economic 4
Future Investment Board to be the Western Maryland Economic Future Investment 5
Vetting Board; establishing and specifying the purpose of the Western Maryland 6
Economic Future Investment Voting Board; establishing an Executive Director for 7
the Vetting Board and the Voting Board; altering the manner in which decisions are 8
made regarding certain proposals for funding; and generally relating to the Western 9
Maryland Economic Future Investment Boards and the Senator George C. Edwards 10
Fund. 11
BY repealing and reenacting, without amendments, 12
Article – Economic Development 13
Section 13–701(a), (c), and (e) (e), and (g) 14
Annotated Code of Maryland 15
(2018 Replacement Volume and 2022 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Economic Development 18
Section 13–736 through 13–741 19
Annotated Code of Maryland 20
(2018 Replacement Volume and 2022 Supplement) 21
BY adding to 22 2 SENATE BILL 865
Article – Economic Development 1
Section 13–738 and 13–739 2
Annotated Code of Maryland 3
(2018 Replacement Volume and 2022 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Economic Development 7
13–701. 8
(a) In this subtitle the following words have the meanings indicated. 9
(c) “Council” means the Tri–County Council for Western Maryland. 10
(e) “Member county” means each county in the region that pays annual dues that 11
the Council sets. 12
(g) “Region” means Allegany, Garrett, and Washington counties. 13
13–736. 14
(a) In this part the following words have the meanings indicated. 15
[(b) “Board” means the Western Maryland Economic Future Investment Board 16
established under § 13–737 of this subtitle.] 17
(B) (C) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF 18
THE VETTING BOARD AND THE VOTING BOARD. 19
(c) (D) “Fund” means the Senator George C. Edwards Fund established under 20
[§ 13–738] § 13–740 § 13–739 of this subtitle. 21
(D) “VETTING BOARD” MEANS THE WESTERN MARYLAND ECONOMIC 22
FUTURE INVESTMENT VETTING BOARD ESTABLISHED UND ER § 13–737 OF THIS 23
SUBTITLE. 24
(E) “VOTING BOARD” MEANS THE WESTERN MARYLAND ECONOMIC 25
FUTURE INVESTMENT VOTING BOARD ESTABLISHED UND ER § 13–738 OF THIS 26
SUBTITLE. 27
13–737. 28
(a) There is a Western Maryland Economic Future Investment VETTING Board. 29
SENATE BILL 865 3
(b) The VETTING Board consists of the following members: 1
(1) one representative from the Department of Commerce, appointed by the 2
Secretary of Commerce, WHO SHALL SERVE AS A NONVOTIN G MEMBER; 3
[(2) one commissioner from each member county, appointed by each 4
member county’s respective commissioners;] 5
[(3)] (2) one representative of an economic development organization in 6
each member county, appointed by each member county’s respective commissioners, WHO 7
SHALL SERVE AS A NON VOTING MEMBER ; 8
[(4)] (3) one representative from the [chamber of commerce from each 9
member county, appointed by each member county’s respective chamber of commerce] 10
PRIVATE SECTOR IN DISTRICT 1, APPOINTED BY THE SPEAKER OF THE HOUSE, IN 11
CONSULTATION WITH THE DISTRICT 1 DELEGATION TO THE MARYLAND GENERAL 12
ASSEMBLY; and 13
[(5)] (4) one representative from the [Maryland Municipal League, 14
appointed by the Executive Director of the League] PRIVATE SECTOR IN DISTRICT 2, 15
APPOINTED BY THE PRESIDENT OF THE SENATE, IN CONSULTATION WITH THE 16
DISTRICT 2 DELEGATION TO THE MARYLAND GENERAL ASSEMBLY; 17
(5) ONE COUNTY COMMISSIO NER FROM EACH MEMBER COUNTY; 18
(6) ONE REPRESENTATIVE F ROM DISTRICT 1, APPOINTED BY THE 19
PRESIDENT OF THE SENATE, IN CONSULTATION WITH THE DISTRICT 1 DELEGATION 20
TO THE MARYLAND GENERAL ASSEMBLY, WHO SHALL SERVE AS A NONVOTING 21
MEMBER; 22
(7) ONE REPRESENTATIVE F ROM DISTRICT 2, IN CONSULTATION 23
WITH THE DISTRICT 2 DELEGATION TO THE MARYLAND GENERAL ASSEMBLY, 24
APPOINTED BY THE SPEAKER OF THE HOUSE, WHO SHALL SERVE AS A NONVOTING 25
MEMBER; 26
(8) THE STATE SENATOR REPRESENTING DISTRICT 1, WHO SHALL 27
SERVE AS AN EX OFFIC IO NONVOTING MEMBER ; 28
(9) THE STATE SENATOR REPRESENTING DISTRICT 2, WHO SHALL 29
SERVE AS AN EX OFFICIO NONV OTING MEMBER ; 30
(10) A MEMBER OF THE HOUSE OF DELEGATES REPRESENTIN G A 31
SUBDISTRICT IN DISTRICT 1, APPOINTED BY THE SPEAKER OF THE HOUSE, WHO 32
SHALL SERVE AS AN EX OFFICIO NONVOTING ME MBER; AND 33 4 SENATE BILL 865
(11) A MEMBER OF THE HOUSE OF DELEGATES REPRESENTING A 1
SUBDISTRICT IN DISTRICT 2, APPOINTED BY THE SPEAKER OF THE HOUSE, WHO 2
SHALL SERVE AS AN EX OFFICIO NONVOTING ME MBER. 3
(c) The [representative from the Department of Commerce shall] VETTING 4
VOTING MEMBERS OF TH E BOARD MAY ELECT A chair [the Board] FROM AMONG ITS 5
THE BOARD’S MEMBERS. 6
(d) The Council shall provide staff for the VETTING Board. 7
(e) A member of the VETTING Board: 8
(1) may not receive compensation as a member of the Board; but 9
(2) is entitled to reimbursement for expenses under the Standard State 10
Travel Regulations, as provided in the State budget. 11
(F) THE PRIVATE SECTOR IN DIVIDUALS APPOINTED UNDER SUBSECTION 12
(B)(3) AND (4) OF THIS SECTION MAY BE THE SAME INDIVIDU ALS AS APPOINTED 13
UNDER § 13–738(B)(2) OF THIS SUBTITLE. 14
13–738. 15
(A) THERE IS A WESTERN MARYLAND ECONOMIC FUTURE INVESTMENT 16
VOTING BOARD. 17
(B) THE VOTING BOARD CONSISTS OF THE FOLLOWING MEMBERS : 18
(1) ONE COMMISSIONER FRO M EACH MEMBER COUNTY , APPOINTED 19
BY EACH MEMBER COUNT Y’S RESPECTIVE COMMISS IONERS; AND 20
(2) THE TWO MEMBERS OF T HE VETTING BOARD WHO ARE 21
REPRESENTATIVES FROM THE PRIVATE SECTOR . 22
(3) THE CURRENT SENATORS OF DISTRICT 1 AND DISTRICT 2 MAY 23
SERVE AS NONVOTING M EMBERS OF THE VETTING BOARD. 24
(C) THE COUNCIL MAY PROVIDE S TAFF FOR THE VOTING BOARD. 25
(D) A MEMBER OF THE VOTING BOARD: 26
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD; 27
BUT 28
SENATE BILL 865 5
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 1
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 2
(E) (F) THE VOTING VOTING MEMBERS OF TH E BOARD SHALL HAVE 3
FINAL APPROVAL AUTHO RITY ON: 4
(1) DISBURSEMENTS FROM T HE FUND; AND 5
(2) PROJECTS SELECTED IN ACCORDANCE WITH § 13–741 13–740 OF 6
THIS SUBTITLE. 7
(F) THE PRIVATE SECTOR IN DIVIDUALS APPOINTED UNDER SUBSECTION 8
(B)(2) OF THIS SECTION MAY BE THE SAME INDIVIDU ALS APPOINTED UNDER § 9
13–737(B)(3) AND (4) OF THIS SUBTITLE. 10
13–739. 13–738. 11
(A) THE VOTING BOARD SHALL APPOINT A N EXECUTIVE DIRECTOR. 12
(B) THE EXECUTIVE DIRECTOR SERVES AT TH E PLEASURE OF THE 13
VETTING BOARD AND THE VOTING BOARD. 14
(C) THE SALARY OF THE EXECUTIVE DIRECTOR SHALL BE UP TO MAY NOT 15
EXCEED $75,000. 16
(D) THE EXECUTIVE DIRECTOR SHALL MANAGE THE ADMINISTRATIVE 17
AFFAIRS AND TECHNICA L ACTIVITIES OF THE VETTING BOARD AND THE VOTING 18
BOARD, IN ACCORDANCE WITH P OLICIES AND PROCEDUR ES THE VETTING BOARD 19
AND VOTING BOARD ESTABLISH ESTABLISHES. 20
(E) THE EXECUTIVE DIRECTOR SHALL: 21
(1) ADMINISTER MAY ASSIST IN ADMINI STERING THE FUND UNDER § 22
13–740 13–739 OF THIS SUBTITLE; 23
(2) SHALL PRESENT THE PROJECTS SELECTED IN ACCORDAN CE WITH 24
§ 13–741 13–740 OF THIS SUBTITLE AS VETTED BY THE VETTING BOARD TO THE 25
VOTING DETERMINED BY THE VO TING MEMBERS OF THE BOARD; AND 26
(2) (3) SHALL PERFORM ANY OTHER DU TIES THAT THE VETTING 27
BOARD AND THE VOTING BOARD DIRECT DIRECTS IN CARRYING OUT THIS PART. 28
[13–738.] 13–740. 13–739. 29
(a) There is a Senator George C. Edwards Fund. 30 6 SENATE BILL 865
(b) The purpose of the Fund is to provide grant or loan funding to capital 1
infrastructure projects and business development projects that improve the economic 2
conditions in the region. 3
(c) The [Council] EXECUTIVE DIRECTOR shall administer the Fund. 4
(d) (1) The Fund consists of: 5
(i) appropriations as provided in the State budget; 6
(ii) interest or other income earned on the investment of money in 7
the Fund; and 8
(iii) any other money accepted for the benefit of the Fund. 9
(2) In each of fiscal years 2024 through 2026, the Governor shall include in 10
the annual operating or capital budget bill an appropriation of at least $10,000,000 to the 11
Fund. 12
(e) Money in the Fund may be used only to: 13
(1) award grants and provide loans to capital infrastructure projects and 14
business development projects to improve the economic conditions in the region; and 15
(2) pay the costs necessary to administer the Fund, INCLUDING PAYING 16
THE SALARY OF THE EXECUTIVE DIRECTOR. 17
(f) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 18
under § 7–302 of the State Finance and Procurement Article. 19
(2) The State Treasurer shall hold the Fund separately, and the 20
Comptroller shall account for the Fund. 21
(3) The State Treasurer shall invest the money in the Fund in the same 22
manner as other State money may be invested. 23
(4) Any investment earnings of the Fund shall be credited to the Fund. 24
[13–739.] 13–741. 13–740. 25
(a) A member county or local entity within a member county may submit a 26
proposal for funding under this part. 27
(b) To qualify for funding, a project shall be: 28
(1) a capital infrastructure project that: 29 SENATE BILL 865 7
(i) is linked to economic development in the region, as approved by 1
the VETTING Board; and 2
(ii) receives 20% matching funds from the member county where the 3
project is located, another local entity, a private business, or a combination thereof; 4
(2) a business development project that: 5
(i) encourages and promotes downtown neighborhood 6
revitalization, small business tourism, or other areas as approved by the VETTING Board; 7
and 8
(ii) receives 10% matching funds from the member county where the 9
project is located, another local entity, a private business, or a combination thereof; or 10
(3) any other project that the VETTING Board determines is appropriate 11
to promote economic development in the region. 12
(c) (1) (i) The VETTING Board shall develop criteria to review, evaluate, 13
and rate project proposals for funding under this part. 14
(ii) The criteria in subparagraph (i) of this paragraph shall ensure 15
that the project: 16
1. creates or retains jobs; 17
2. creates or retains businesses; 18
3. increases wages; or 19
4. creates new State or local tax revenue. 20
(2) (I) THE VOTING BOARD SHALL CHOOSE WH ICH PROJECTS TO 21
AWARD GRANTS AND LOA NS TO BASED ON THE C RITERIA DEVELOPED IN 22
ACCORDANCE WITH PARA GRAPH (1) OF THIS SUBSECTION . 23
(II) The VETTING Board OR THE EXECUTIVE DIRECTOR shall 24
distribute grants and loans to projects based on [the criteria developed in accordance with 25
paragraph (1) of this subsection] THE DECISIONS MADE B Y THE VOTING BOARD IN 26
ACCORDANCE WITH SUBP ARAGRAPH (I) OF THIS PARAGRAPH . 27
(d) (1) The VETTING Board OR THE EXECUTIVE DIRECTOR shall monitor 28
and track the progress of each project that receives funding under this part. 29
8 SENATE BILL 865
(2) If the VETTING Board determines that sufficient progress is not being 1
made toward achieving the requirements of this section, the VETTING Board may reclaim 2
the awarded funds. 3
(e) The funding provided in this section shall be used to supplement and not 4
supplant any funds that would otherwise be provided to the VETTING Board or the member 5
counties. 6
[13–740.] 13–742. 13–741. 7
(a) On or before December 31 each year, the VETTING Board shall report to the 8
Governor and, in accordance with § 2–1257 of the State Government Article, the General 9
Assembly on the implementation of this part. 10
(b) The report required in subsection (a) of this section shall include, 11
disaggregated by member county: 12
(1) the number of new projects funded during the previous year; 13
(2) the number of projects that were completed during the previous year; 14
(3) the number of ongoing projects that were not completed during the 15
previous year; 16
(4) the amount and type of funding received by each project; 17
(5) the current status of each ongoing project; and 18
(6) any other relevant economic metrics determined by the VETTING 19
Board. 20
[13–741.] 13–743. 13–742. 21
The VETTING Board shall adopt regulations to carry out this part. 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 23
October June 1, 2023. 24