Maryland 2024 Regular Session

Maryland House Bill HB1490 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1490
6	6
7	7	HOUSE BILL 1490
8	8	C8 4lr3503
9	9	CF SB 765
10	10	By: Delegate Wells
11	11	Introduced and read first time: February 15, 2024
12	12	Assigned to: Rules and Executive Nominations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Economic Development – Business Diversity Incubator Program and Fund – 2
19	19	Established 3
20	20
21	21	FOR the purpose of establishing the Business Diversity Incubator Program and Fund in 4
22	22	the Department of Commerce to provide grants to certain business entities to 5
23	23	establish certain business incubators; and generally relating to the establishment of 6
24	24	the Business Diversity Incubator Program and Fund. 7
25	25
26	26	BY repealing and reenacting, without amendments, 8
27	27	Article – Economic Development 9
28	28	Section 1–101(a) and (c) 10
29	29	Annotated Code of Maryland 11
30	30	(2018 Replacement Volume and 2023 Supplement) 12
31	31
32	32	BY adding to 13
33	33	Article – Economic Development 14
34	34	Section 5–2501 through 5–2506 to be under the new subtitle “Subtitle 25. Business 15
35	35	Diversity Incubator Program” 16
36	36	Annotated Code of Maryland 17
37	37	(2018 Replacement Volume and 2023 Supplement) 18
38	38
39	39	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
40	40	That the Laws of Maryland read as follows: 20
41	41
42	42	Article – Economic Development 21
43	43
44	44	1–101. 22
45	45
46	46	(a) In this division the following words have the meanings indicated. 23
47	47
48	48	(c) “Department” means the Department of Commerce. 24 2 HOUSE BILL 1490
49	49
50	50
51	51
52	52	SUBTITLE 25. BUSINESS DIVERSITY INCUBATOR PROGRAM. 1
53	53
54	54	5–2501. 2
55	55
56	56	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 3
57	57	INDICATED. 4
58	58
59	59	(B) “FUND” MEANS THE BUSINESS DIVERSITY INCUBATOR FUND. 5
60	60
61	61	(C) “PROGRAM” MEANS THE BUSINESS DIVERSITY INCUBATOR PROGRAM. 6
62	62
63	63	(D) “QUALIFIED INCUBATOR ” MEANS A FOR –PROFIT ORGANIZATION , 7
64	64	NONPROFIT ORGANIZATI ON, B CORPORATION , PUBLIC–PRIVATE PARTNERSHIP , OR 8
65	65	SOCIAL ENTERPRISE IN THE STATE THAT: 9
66	66
67	67	(1) PRIMARILY SERVES OR WILL PRIMARILY SERVE BUSINESSES IN 10
68	68	THE STATE; 11
69	69
70	70	(2) REQUIRES OR WILL REQ UIRE PARTICIPATING B USINESSES TO 12
71	71	ENGAGE IN A FORMAL I NCUBATOR PROGRAM DES IGNED TO ADVANCE EAR LY–STAGE 13
72	72	BUSINESSES; 14
73	73
74	74	(3) IS STAFFED OR WILL B E STAFFED BY AT LEAST ONE INDIVID UAL 15
75	75	DEDICATED TO MENTORI NG BUSINESSES AND GU IDING BUSINESSES THR OUGH THE 16
76	76	PROGRAM; 17
77	77
78	78	(4) IS DIRECTED BY AN IN DIVIDUAL WHO HAS COM PLETED A 18
79	79	TRAINING PROGRAM FOC USED ON OPERATING A BUSINESS INCUBATOR T ARGETING 19
80	80	SOCIALLY AND ECONOMI CALLY DISADVANTAGED ENTREPREN EURS, OR HELPING 20
81	81	SOCIALLY AND ECONOMI CALLY DISADVANTAGED ENTREPRENEURS SECURE 21
82	82	INVESTMENT, THAT INCLUDED TOPICS SUCH AS: 22
83	83
84	84	(I) DIVERSITY, EQUITY, AND INCLUSION SOLUTI ONS; 23
85	85
86	86	(II) BUILDING WEALTH IN D IVERSE COMMUNITIES ; 24
87	87
88	88	(III) NAVIGATING DIVERSE TECH ENTREPRENEURSHIP ; 25
89	89
90	90	(IV) RISK, LEGAL ISSUES , AND SECURITIES AND EXCHANGE 26
91	91	COMMISSION REGULATION S; 27
92	92
93	93	(V) THE DUE DILIGENCE PR OCESS FOR EARLY –STAGE 28
94	94	INVESTMENTS ; 29 HOUSE BILL 1490 3
95	95
96	96
97	97
98	98	(VI) ACCOUNTING , TAXES, AND EXITS FOR COMPAN IES AND 1
99	99	FOUNDERS; 2
100	100
101	101	(VII) UNDERSTANDING AND MI TIGATING CONSCIOUS A ND 3
102	102	UNCONSCIOUS BIAS ; AND 4
103	103
104	104	(VIII) CORPORATE BOARD GOVE RNANCE, HUMAN RESOURCES , 5
105	105	PROCUREMENT , PRODUCT DEVELOPMENT , AND CORPORATE INNOVA TION; AND 6
106	106
107	107	(5) WAS ESTABLISHED ON O R AFTER JANUARY 1, 2012. 7
108	108
109	109	5–2502. 8
110	110
111	111	(A) (1) THERE IS A BUSINESS DIVERSITY INCUBATOR PROGRAM IN THE 9
112	112	DEPARTMENT . 10
113	113
114	114	(2) THE PURPOSE OF THE PROGRAM IS TO PROVIDE GRANTS TO 11
115	115	QUALIFIED INCUBATORS TO ESTABLISH DIVERSE AND EFFECTIVE BUSINE SS 12
116	116	INCUBATORS IN THE STATE. 13
117	117
118	118	(B) (1) THE DEPARTMENT SHALL ADM INISTER THE PROGRAM. 14
119	119
120	120	(2) THE DEPARTMENT SHALL HIRE AT LEAST ONE FULL –TIME 15
121	121	COORDINATOR TO ADMIN ISTER THE PROGRAM. 16
122	122
123	123	5–2503. 17
124	124
125	125	(A) EACH FISCAL YEAR , THE DEPARTMENT SHALL AWAR D GRANTS IN 18
126	126	ACCORDANCE WITH THIS SECTION. 19
127	127
128	128	(B) (1) THE DEPARTMENT MAY AWARD A GRANT UNDER THE PROGRAM 20
129	129	FOR: 21
130	130
131	131	(I) PLANNING THE ESTABLI SHMENT OF A QUALIFIE D 22
132	132	INCUBATOR OR PLANNIN G FOR A QUALIFIED IN CUBATOR’S LONG–TERM 23
133	133	SUSTAINABILITY ; 24
134	134
135	135	(II) CAPITAL IMPROVEMENTS , SECURING REAL ESTATE , 25
136	136	RENOVATIONS , AND THE PURCHASE OF CAPITAL EQUIPMENT TO ESTABLISH OR 26
137	137	GROW A QUALIFIED INC UBATOR; OR 27
138	138
139	139	(III) OPERATING AND PROGRA M EXPENSES ASSOCIATE D WITH 28
140	140	SUPPORTING PROGRAMS . 29
141	141	4 HOUSE BILL 1490
142	142
143	143
144	144	(2) EXCEPT IN THE FIRST Y EAR OF A GRANT , GRANTS AWARDED 1
145	145	UNDER THE PROGRAM MAY NOT BE US ED TO SUPPORT MORE T HAN 25% OF THE 2
146	146	OPERATING EXPENSES O F A QUALIFIED INCUBA TOR. 3
147	147
148	148	(3) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 4
149	149	GRANTS AWARDED UNDER THE PROGRAM SHALL RENEW A ND BE AWARDED TO A 5
150	150	QUALIFIED INCUBATOR EACH FISCAL YEAR OF THE PROGRAM WITHOUT FURTH ER 6
151	151	APPLICATION. 7
152	152
153	153	(II) THE RENEWAL OF A GRAN T IS SUBJECT TO THE QUALIFIED 8
154	154	INCUBATOR’S COMPLIANCE WITH TH E TERMS OF THE GRANT INCLUDING ECONOMIC 9
155	155	IMPACT METRICS PROPO SED IN THE APPLICATI ON FOR THE GRANT AND ON A 10
156	156	COMPETITIVE BASIS WI TH OTHER QUALIFIED I NCUBATORS APPLYING F OR 11
157	157	FUNDING. 12
158	158
159	159	(4) FOR ANY FISCAL YEAR , AN ORGANIZATION MAY NOT RECEIVE A 13
160	160	GRANT UNDER THE PROGRAM THAT IS LESS THAN $100,000 OR EXCEEDS $400,000. 14
161	161
162	162	(C) (1) THE DEPARTMENT SHALL ESTABLISH A CO MPETITIVE 15
163	163	APPLICATION PROCESS FOR GRANTS MADE UNDE R THE PROGRAM. 16
164	164
165	165	(2) THE DEPARTMENT SHALL AWAR D AT LEAST HALF OF T HE MONEY 17
166	166	APPROPRIATED TO THE PROGRAM TO ORGANIZATI ONS THAT PARTICIPATE IN § 18
167	167	14–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE AND GIVE 19
168	168	PREFERENCE TO QUALIF IED INCUBATORS THAT : 20
169	169
170	170	(I) HAVE A PROGRAM MANAG ED BY SOCIALLY OR 21
171	171	ECONOMICALLY DISADVA NTAGED INDIVIDUALS ; 22
172	172
173	173	(II) ARE LOCATED IN A FED ERALLY RECOGNIZED HU B ZONE, A 23
174	174	STATE QUALIFIED OPPOR TUNITY ZONE, OR AN UNDERSERVED CO MMUNITY; 24
175	175
176	176	(III) HAVE EXPERIENCE SUPP ORTING COMPANIES IN THE 25
177	177	START–UP STAGE; 26
178	178
179	179	(IV) SERVE COMPANIES LED BY SOCIALLY OR ECONO MICALLY 27
180	180	DISADVANTAGED INDIVI DUALS AND HAVE AN EC ONOMIC IMPACT ON UND ERSERVED 28
181	181	COMMUNITIES ; OR 29
182	182
183	183	(V) HAVE ESTABLISHED A P RESENCE IN AN UNDERS ERVED 30
184	184	COMMUNITY . 31
185	185
186	186	5–2504. 32
187	187	HOUSE BILL 1490 5
188	188
189	189
190	190	(A) (1) THE DEPARTMENT AND A GRAN T RECIPIENT SHALL EXECUTE A 1
191	191	PROGRAM AGREEMENT . 2
192	192
193	193	(2) THE GRANT RECIPIENT S HALL COMPLY WITH THE TERMS OF THE 3
194	194	PROGRAM AGREEMENT . 4
195	195
196	196	(3) THE DEPARTMENT MAY EXERCI SE ANY REMEDY AUTHOR IZED BY 5
197	197	LAW IF THE GRANT REC IPIENT: 6
198	198
199	199	(I) VIOLATES ANY PROVISI ON OF THE PROGRAM AGREEMENT ; 7
200	200	OR 8
201	201
202	202	(II) DOES NOT MEET ANY RE QUIREMENT UNDER THIS SECTION. 9
203	203
204	204	(B) (1) ON OR BEFORE SEPTEMBER 1, 2025, AND EACH SEPTEMBER 1 10
205	205	THEREAFTER , AN ORGANIZATION THAT RECEIVES A GRANT UND ER THE PROGRAM 11
206	206	SHALL REPORT TO THE DEPARTMENT DOCUMENTIN G HOW THE O RGANIZATION 12
207	207	USED THE GRANT MONEY RECEIVED IN THE IMME DIATELY PRECEDING FI SCAL YEAR. 13
208	208
209	209	(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 14
210	210	SUBSECTION SHALL INC LUDE: 15
211	211
212	212	(I) INFORMATION ABOUT THE USE OF THE GRANT ; 16
213	213
214	214	(II) THE ECONOMIC IMPACT OF THE GRANT; AND 17
215	215
216	216	(III) ANY OTHER INFORMATIO N THE DEPARTMENT CONSIDERS 18
217	217	NECESSARY TO DETERMI NE THE EFFECTIVENESS AND IMPACT OF THE PROGRAM. 19
218	218
219	219	(3) ON OR BEFORE DECEMBER 31, 2025, AND EVERY YEAR 20
220	220	THEREAFTER , THE DEPARTMENT SHALL REPO RT TO THE GENERAL ASSEMBLY, IN 21
221	221	ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE 22
222	222	FOLLOWING INFORMATIO N FOR THE PRECEDING FISCAL YEAR: 23
223	223
224	224	(I) THE NUMBER OF GRANTS AWARDED UNDER THE PROGRAM; 24
225	225
226	226	(II) THE AMOUNT OF EACH G RANT AWARDED UNDER T HIS 25
227	227	SECTION; AND 26
228	228
229	229	(III) THE NAME AND LOCATION OF E ACH ORGANIZATION 27
230	230	AWARDED A GRANT UNDE R THE PROGRAM. 28
231	231
232	232	5–2505. 29
233	233	6 HOUSE BILL 1490
234	234
235	235
236	236	(A) THERE IS A BUSINESS DIVERSITY INCUBATOR FUND. 1
237	237
238	238	(B) THE PURPOSE OF THE FUND IS TO FUND GRANT S AWARDED UNDER THE 2
239	239	PROGRAM IN ACCORDANCE WITH THIS SECTION . 3
240	240
241	241	(C) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 4
242	242
243	243	(D) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO 5
244	244	REVERSION UNDER § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 6
245	245
246	246	(E) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , AND THE 7
247	247	COMPTROLLER SH ALL ACCOUNT FOR THE FUND. 8
248	248
249	249	(F) THE FUND CONSISTS OF : 9
250	250
251	251	(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 10
252	252
253	253	(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 11
254	254	THE BENEFIT OF THE FUND. 12
255	255
256	256	(G) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, 13
257	257	THE FUND MAY BE USED ONLY TO PROVIDE GRANTS UN DER THE PROGRAM. 14
258	258
259	259	(2) UP TO 15% OF THE ANNUAL APPROP RIATION TO THE FUND MAY 15
260	260	BE USED FOR THE ADMI NISTRATION OF THE FUND AND THE PROGRAM. 16
261	261
262	262	(H) FOR EACH OF FISCAL YE ARS 2026 THROUGH 2031, THE GOVERNOR MAY 17
263	263	INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $5,000,000 TO THE 18
264	264	FUND. 19
265	265
266	266	(I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 20
267	267	THE SAME MANNER AS O THER STATE MONEY MAY BE IN VESTED. 21
268	268
269	269	5–2506. 22
270	270
271	271	NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO PROHIBIT AN 23
272	272	ORGANIZATION FROM RE CEIVING FUNDS FROM A GOVERNMENT SOURCE OT HER 24
273	273	THAN THE PROGRAM. 25
274	274
275	275	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 26
276	276	1, 2024. It shall remain effective for a period of 7 years and, at the end of June 30, 2031, 27
277	277	this Act, with no further action required by the General Assembly, shall be abrogated and 28
278	278	of no further force and effect. 29
279	279
280	280	HOUSE BILL 1490 7
281	281
282	282
283	283