EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb0599*
HOUSE BILL 599
C8, C9 4lr4521
CF SB 483
By: The Speaker (By Request – Administration) and Delegates Allen, Amprey,
Anderton, Bagnall, Bhandari, Bouchat, Buckel, Charkoudian, Conaway,
Crutchfield, Davis, Ebersole, Edelson, Fennell, Foley, Grossman, Guyton,
Guzzone, Henson, Hill, Holmes, Hornberger, Jackson, A. Johnson,
S. Johnson, D. Jones, Kaiser, Kaufman, J. Long, McCaskill, Moon,
Palakovich Carr, Pasteur, Patterson, Phillips, Pruski, Qi, Roberts, Ruff,
Ruth, Simmons, Simpson, Solomon, Spiegel, Taveras, Toles, Turner,
Valderrama, Watson, White Holland, and Williams
Introduced and read first time: January 24, 2024
Assigned to: Environment and Transportation and Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Maryland Community Investment Corporation – Establishment 2
(Housing and Community Development Financing Act of 2024) 3
FOR the purpose of establishing the Maryland Community Investment Corporation as an 4
independent unit to make investments in certain low –income communities; 5
authorizing the Board of Directors of the Corporation to establish a certain advisory 6
committee and requiring the Corporation to establish an investment committee; 7
requiring the Corporation to apply for an allocation of federal new markets tax 8
credits; establishing eligible uses of money of the Corporation; expanding the eligible 9
uses of the Strategic Demolition and Smart Growth Impact Fund to include grants 10
and loans for debt payments and for credit enhancement for certain projects; and 11
generally relating to community investment, the Maryland Community Investment 12
Corporation, and the Strategic Demolition and Smart Growth Impact Fund. 13
BY repealing and reenacting, without amendments, 14
Article – Economic Development 15
Section 9–101(a), (c), and (e) 16
Annotated Code of Maryland 17
(2018 Replacement Volume and 2023 Supplement) 18
BY adding to 19
Article – Economic Development 20
Section 10–1101 through 10–1123 to be under the new subtitle “Subtitle 11. 21
Maryland Community Investment Corporation” 22 2 HOUSE BILL 599
Annotated Code of Maryland 1
(2018 Replacement Volume and 2023 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Housing and Community Development 4
Section 4–508 5
Annotated Code of Maryland 6
(2019 Replacement Volume and 2023 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Economic Development 10
9–101. 11
(a) In this division the following words have the meanings indicated. 12
(c) “Department” means the Department of Commerce. 13
(e) “Secretary” means the Secretary of Commerce. 14
SUBTITLE 11. MARYLAND COMMUNITY INVESTMENT CORPORATION . 15
10–1101. 16
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18
(B) “BOARD” MEANS THE BOARD OF DIRECTORS OF THE CORPORATION . 19
(C) “CORPORATION ” MEANS THE MARYLAND COMMUNITY INVESTMENT 20
CORPORATION . 21
(D) “INVESTMENT COMMITTEE ” MEANS A COMMITTEE AP POINTED BY THE 22
BOARD TO ADVISE ON AN D APPROVE INVES TMENTS AS REQUIRED U NDER THIS 23
SUBTITLE. 24
(E) “LOW–INCOME COMMUNITY ” MEANS A COMMUNITY IN THE STATE THAT 25
MEETS THE DEFINITION OF A LOW–INCOME COMMUNITY UND ER 26 U.S.C. § 26
45D(E)(1). 27
(F) “NEW MARKETS TAX CREDI T” MEANS THE FEDERAL TA X CREDITS 28
ALLOCATED UNDE R 26 U.S.C. § 45D. 29
HOUSE BILL 599 3
(G) “QUALIFIED COMMUNITY D EVELOPMENT ENTITY ” MEANS AN ENTITY 1
THAT MEETS THE DEFIN ITION OF A QUALIFIED COMMUNITY DEVELOPMEN T ENTITY 2
UNDER 26 U.S.C. § 45D(C)(1). 3
(H) “QUALIFIED EQUITY INVE STMENT” MEANS AN INVESTMENT THAT 4
MEETS THE DEFINITION OF A QUAL IFIED EQUITY INVESTM ENT UNDER 26 U.S.C. § 5
45D(B)(1). 6
10–1102. 7
THIS SUBTITLE SHALL B E LIBERALLY CONSTRUE D TO CARRY OUT THE 8
PURPOSES OF THIS SUB TITLE. 9
10–1103. 10
(A) THERE IS A MARYLAND COMMUNITY INVESTMENT CORPORATION . 11
(B) THE CORPORATION IS A BODY PO LITIC AND CORPORATE AND IS AN 12
INSTRUMENTALITY OF T HE STATE. 13
10–1104. 14
THE PURPOSES OF THE CORPORATION ARE TO : 15
(1) DO ALL THINGS NECESS ARY TO QUALIFY AS A QUALIFIED 16
COMMUNITY DEVELOPMEN T ENTITY; 17
(2) APPLY TO THE U.S. DEPARTMENT O F THE TREASURY TO BE 18
DESIGNATED AS A QUAL IFIED COMMUNITY DEVE LOPMENT ENTITY ; 19
(3) APPLY TO THE U.S. DEPARTMENT OF THE TREASURY FOR AN 20
ALLOCATION OF NEW MA RKETS TAX CREDITS ; 21
(4) RECEIVE, MAKE, AND FACILITATE QUALI FIED EQUITY 22
INVESTMENTS AND FINA NCIAL A SSISTANCE AVAILABLE IN LOW–INCOME 23
COMMUNITIES IN THE STATE; 24
(5) ALLOCATE ANY NEW MAR KETS TAX CREDITS REC EIVED BY THE 25
CORPORATION ; 26
(6) COORDINATE WITH OTHE R QUALIFIED COMMUNIT Y 27
DEVELOPMENT ENTITIES IN THE STATE TO HELP ENSURE THAT LOW–INCOME 28
COMMUNITIES ARE RECE IVING THE MAXIMUM BE NEFIT OF QUALIFIED E QUITY 29 4 HOUSE BILL 599
INVESTMENTS ; 1
(7) MAKE INVESTMENTS AND FINANCIAL ASSISTANCE AVAILABLE TO 2
LOW–INCOME COMMUNITIES FROM THE CORPORATION ’S MONEY OR FROM ANY 3
OTHER SOURCE ; 4
(8) BUILD A LONG –TERM FINANCIAL CAPAC ITY AND SUSTAINED 5
INVESTMENT IN LOW –INCOME COMMUNITIES I N THE STATE; 6
(9) COORDINATE AND CREAT E PATHWAYS TO FOLLOW –ON FINANCING 7
IN THE STATE; AND 8
(10) FOSTER INCLUSIVE AND DIVERSE ENTREPRENEUR SHIP AND 9
INNOVATION THROUGHOU T THE STATE, WHICH MAY INCLUDE IN ITIATIVES TO RAISE 10
AWARENESS OF PROGRAM S TO ASSIST LOW–INCOME COMMUNITIES . 11
10–1105. 12
(A) A BOARD OF DIRECTORS SHALL MANAG E THE CORPORATION AN D ITS 13
UNITS AND EXERCISE I TS CORPORATE POWERS . 14
(B) THE BOARD CONSISTS OF THE FOLLOWING MEMBERS : 15
(1) THE COMPTROLLER OR THE COMPTROLLER ’S DESIGNEE; 16
(2) THE SECRETARY OR THE SECRETARY’S DESIGNEE; 17
(3) THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT 18
OR THE SECRETARY’S DESIGNEE; 19
(4) THE SECRETARY OF PLANNING OR THE SECRETARY’S DESIGNEE; 20
(5) THE SECRETARY OF GENERAL SERVICES OR THE SECRETARY’S 21
DESIGNEE; AND 22
(6) THE FOLLOWING MEMBER S APPOINTED BY THE GOVERNOR WITH 23
THE ADVICE AND CONSENT OF THE SENATE: 24
(I) ONE REPRESENTATIVE O F NONPROFIT ENTITIES IN THE 25
STATE; AND 26
(II) ONE REPRESENTATIVE O F LOW–INCOME COMMUNITIES . 27
HOUSE BILL 599 5
(C) A MEMBER OF THE BOARD SHALL RESIDE IN THE STATE. 1
(D) IN MAKING APPOINTMENT S TO THE BOARD, THE GOVERNOR SHALL 2
CONSIDER: 3
(1) DIVERSITY; AND 4
(2) ALL GEOGRAPHIC REGIO NS OF THE STATE. 5
(E) A MEMBER OF THE BOARD: 6
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD; 7
BUT 8
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 9
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 10
(F) (1) THE TERM OF AN APPOIN TED MEMBER IS 4 YEARS. 11
(2) THE TERMS OF THE APPO INTED MEMBERS ARE ST AGGERED AS 12
REQUIRED BY THE TERM S PROVIDED FOR MEMBE RS ON OCTOBER 1, 2024. 13
(3) AT THE END OF A TERM , AN APPOINTED MEMBER CON TINUES TO 14
SERVE UNTIL A SUCCES SOR IS APPOINTED AND QUALIFIES. 15
(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 16
ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 17
QUALIFIES. 18
(G) (1) THIS SUBSECTION APPLIES TO A MEMBER WHO IS APPOINTED BY 19
THE GOVERNOR UNDER SUBSEC TION (B)(6) OF THIS SECTION. 20
(2) THE GOVERNOR MAY REMOVE A N APPOINTED MEMBER F OR 21
INCOMPETENCE , MISCONDUCT , OR FAILURE TO PERFOR M THE DUTIES OF THE 22
POSITION. 23
10–1106. 24
THE BOARD SHALL ELE CT A CHAIR FROM AMON G ITS MEMBERS. 25
10–1107. 26
(A) FOUR MEMBERS OF THE BOARD ARE A QUORUM . 27 6 HOUSE BILL 599
(B) A MAJORITY VOTE OF THE MEMBERS PRESENT AT A MEETING HAVING A 1
QUORUM IS NEEDED FOR THE CORPORATION TO ACT . 2
10–1108. 3
(A) THE BOARD SHALL APPOINT M EMBERS OF AN ADVISORY COMMITTEE . 4
(B) THE MEMBERSHIP OF THE ADVISORY COMMITTEE S HALL BE COMPOSED 5
OF MEMBERS REQUIRED FOR THE CORPORATION TO QUALIF Y AS A QUALIFIED 6
COMMUNITY DEVELOPMEN T ENTITY UNDER 26 U.S.C. § 45D(C)(1). 7
(C) THE BOARD SHALL ADOPT POL ICIES ESTABLISH ING THE 8
RESPONSIBILITIES OF THE ADVISORY COMMITT EE. 9
10–1109. 10
(A) THE CORPORATION SHALL EST ABLISH AN INVESTMENT COMMITTEE. 11
(B) THE CORPORATION SHALL ADO PT REGULATIONS ESTAB LISHING: 12
(1) THE RESPONSIBILITIES OF THE INVESTMENT CO MMITTEE; AND 13
(2) THE PROCEDURES FOR THE A PPOINTMENT OF INVEST MENT 14
COMMITTEE MEMBERS . 15
10–1110. 16
(A) THE CORPORATION SHALL EMP LOY A CHIEF EXECUTIVE OFFICER. 17
(B) THE CHIEF EXECUTIVE OFFICER SHALL HAVE EX PERIENCE WITH AND 18
POSSESS QUALIFICATIO NS RELEVANT TO THE A CTIVITIES AND PURPOSES OF THE 19
CORPORATION . 20
(C) THE CHIEF EXECUTIVE OFFICER MAY NOT BE A MEMBER OF THE 21
BOARD. 22
10–1111. 23
(A) THE ATTORNEY GENERAL IS THE LEGAL ADVISOR TO THE 24
CORPORATION . 25
(B) (1) THE ATTORNEY GENERAL SHALL ASSIGN TO THE CORPORATION 26 HOUSE BILL 599 7
ASSISTANT ATTORNEYS GENERAL. 1
(2) THE ATTORNEY GENERAL SHALL DESIGNA TE ONE ASSISTANT 2
ATTORNEY GENERAL AS GENERAL CO UNSEL TO THE CORPORATION . 3
(3) (I) THE GENERAL COUNSEL T O THE CORPORATION SHALL : 4
1. ADVISE THE CHIEF EXECUTIVE OFFICER, THE 5
BOARD, AND ANY OTHER OFFIC IAL OF THE CORPORATION AS REQUES TED BY THE 6
CORPORATION ; 7
2. SUPERVISE THE OTHER ASSISTANT ATTORNEYS 8
GENERAL ASSIGNED TO T HE CORPORATION ; AND 9
3. PERFORM FOR THE CORPORATION OTHER DUT IES 10
THE ATTORNEY GENERAL ASSIGNS . 11
(II) THE GENERAL COUNSEL M AY NOT PROVIDE ANY OTHE R 12
ASSISTANCE NOT SPECI FIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH . 13
(C) WITH THE APPROVAL OF THE ATTORNEY GENERAL, THE CORPORATION 14
MAY RETAIN ANY ADDIT IONAL NECESSARY ATTO RNEYS. 15
10–1112. 16
(A) THE DEPARTMENT AND THE DEPARTMENT OF HOUSING AND 17
COMMUNITY DEVELOPMENT MAY PROVI DE STAFF TO THE CORPORATION AS 18
PROVIDED IN THE STATE BUDGET . 19
(B) THE CORPORATION MAY RETAI N ANY NECESSARY ACCO UNTANTS, 20
ENGINEERS, FINANCIAL ADVISORS , OR OTHER CONSULTANTS . 21
10–1113. 22
(A) EXCEPT AS PROVIDED IN SUBSECTIONS (B), (C), AND (E) OF THIS 23
SECTION, THE CORPORATION IS EXEMPT FROM TITLE 10 AND DIVISION II OF THE 24
STATE FINANCE AND PROCUREMENT ARTICLE. 25
(B) THE CORPORATION IS SUBJEC T TO THE PUBLIC INFORMATION ACT. 26
(C) THE BOARD, THE OFFICERS AND EMP LOYEES OF T HE CORPORATION , 27
MEMBERS OF THE INVES TMENT COMMITTEE , AND MEMBERS OF ANY A DVISORY 28
COMMITTEE APPOINTED ARE SUBJECT TO THE PUBLIC ETHICS LAW. 29 8 HOUSE BILL 599
(D) THE OFFICERS AND EMPL OYEES OF THE CORPORATION ARE NOT 1
SUBJECT TO THE PROVI SIONS OF DIVISION I OF THE STATE PERSONNEL AND 2
PENSIONS ARTICLE THAT GOVERN T HE STATE PERSONNEL MANAGEMENT SYSTEM. 3
(E) (1) THE CORPORATION , THE BOARD, AND EMPLOYEES OF THE 4
CORPORATION ARE SUBJE CT TO TITLE 12, SUBTITLE 4 OF THE STATE FINANCE AND 5
PROCUREMENT ARTICLE. 6
(2) THE BOARD, THE OFF ICERS AND EMPLOYEES OF THE 7
CORPORATION , THE MEMBERS OF THE I NVESTMENT COMMITTEE , AND THE 8
MEMBERS OF ANY ADVIS ORY COMMITTEE APPOIN TED SHALL DISCLOSE T O THE 9
STATE ETHICS COMMISSION WHETHER TH EY ARE EMPLOYED BY O R HAVE A 10
FINANCIAL INTEREST I N AN ENTITY THAT C URRENTLY HAS OR WILL APPLY FOR 11
FUNDS OR AN INVESTME NT IN A PROGRAM ADMI NISTERED BY THE CORPORATION . 12
(F) FOR PURPOSES OF THE OPEN MEETINGS ACT, A PROJECT SITE VISIT OR 13
EDUCATIONAL FIELD TO UR MAY NOT BE CONSID ERED A MEETING OF TH E 14
CORPORATION IF NO ORGANIZATIONAL BUSIN ESS IS CONDUCTED . 15
10–1114. 16
(A) THE CORPORATION SHALL EST ABLISH A SYSTEM OF F INANCIAL 17
ACCOUNTING , CONTROLS, AUDITS, AND REPORTS . 18
(B) THE FISCAL YEAR OF TH E CORPORATION BEGINS ON JULY 1 AND ENDS 19
ON THE FOLLOWING JUNE 30. 20
10–1115. 21
(A) THE CORPORATION MAY CREAT E AND ADMINISTER THE ACCOUNTS 22
THAT IT REQUIRES . 23
(B) THE CORPORATION SHALL DEP OSIT ITS MONEY INTO A STATE OR 24
NATIONAL BANK OR A F EDERALLY INSURED SAV INGS AND LOAN ASSOCI ATION THAT 25
HAS A TOTAL PAID–IN CAPITAL OF AT LEA ST $1,000,000. 26
(C) THE CORPORATION MAY DESIG NATE THE TRUST DEPAR TMENT OF A 27
STATE BANK , NATIONAL BANK , OR SAVINGS AND LOAN ASSOCIATION AS A 28
DEPOSITORY TO RECEIV E SECURITIES THAT TH E CORPORATION OWNS OR 29
ACQUIRES. 30
(D) UNLESS AN AGREEMENT O R COVENANT BETWEEN T HE CORPORATION 31 HOUSE BILL 599 9
AND THE HOLDERS OF I TS OBLIGATIONS LIMIT S CLASSES OF INVESTM ENTS, THE 1
CORPORATION MAY INVES T ITS MONEY IN BONDS OR OTHER OBLIGATIONS OF, OR 2
GUARANTEED AS TO PRI NCIPAL AND INTEREST BY, THE UNITED STATES, THE 3
STATE, OR A GOVERNMENTAL UN IT. 4
(E) ANY INCOME FROM THE IN VESTMENT OF MONEY OF THE CORPORATION , 5
INCLUDING INVESTMENT PROCEEDS AND EARNING S, SHALL BE CREDITED TO THE 6
CORPORATION . 7
10–1116. 8
THE CORPORATION MAY : 9
(1) ADOPT BYLAWS FOR THE CONDUCT OF ITS BUSIN ESS; 10
(2) ADOPT A SEAL; 11
(3) MAINTAIN OFFICES AT A PLACE IT DESIGNATE S IN THE STATE; 12
(4) ACCEPT LOANS , GRANTS, INVESTMENTS , OR ASSISTANCE OF ANY 13
KIND FROM THE FEDERA L OR STATE GOVERNMENT , A LOCAL GOVERNMENT , A 14
COLLEGE OR UNIVERSIT Y, OR A PRIVATE SOURCE ; 15
(5) ENTER INTO CONTRACTS AND OTHER LEGAL INST RUMENTS; 16
(6) SUE OR BE SUED; 17
(7) ACQUIRE, PURCHASE, HOLD, LEASE AS LESSEE , AND USE: 18
(I) A FRANCHISE, PATENT, OR LICENSE; 19
(II) ANY REAL, PERSONAL, MIXED, TANGIBLE, OR INTANGIBLE 20
PROPERTY; OR 21
(III) AN INTEREST IN THE P ROPERTY LISTED IN THIS ITEM; 22
(8) SELL, LEASE AS LESSOR , TRANSFER, LICENSE, ASSIGN, OR 23
DISPOSE OF PROPERTY OR A PROPERTY INTERE ST THAT IT ACQUIRES ; 24
(9) FIX AND COLLECT RATE S, RENTALS, FEES, ROYALTIES, AND 25
CHARGES FOR SERVICES AND RESOURCES IT PRO VIDES OR MAKES AVAILABLE ; 26
(10) CREATE, OWN, CONTROL, OR BE A MEMBER OF A CORPORATION , 27 10 HOUSE BILL 599
LIMITED LIABILITY CO MPANY, PARTNERSHIP , OR OTHER ENTITY , WHETHER 1
OPERATED FOR PROFIT OR NOT FOR PROFIT ; 2
(11) EXERCISE POWER USUAL LY POSSESSED BY A PR IVATE 3
CORPORATION IN P ERFORMING SIMILAR FU NCTIONS UNLESS TO DO SO WOULD 4
CONFLICT WITH STATE LAW; AND 5
(12) DO ALL THINGS NECESS ARY OR CONVENIENT TO CARRY OUT THIS 6
SUBTITLE. 7
10–1117. 8
THE BOARD SHALL: 9
(1) DEVELOP A PUBLIC AND INTERNAL STRATEGIC P LAN THAT 10
INCLUDES: 11
(I) PERFORMANCE GOALS AN D MEASURES; 12
(II) A MISSION STATEMENT AND CORE VALUES ; 13
(III) AN ANALYSIS OF STREN GTHS, WEAKNESSES , 14
OPPORTUNITIES , AND THREATS ; 15
(IV) ACTION PLANS; AND 16
(V) YEARLY AND LONG –TERM GOALS AND OBJEC TIVES; 17
(2) REVIEW STRATEGIC PLANS AND UPDATE THE PLANS ANNUALLY 18
TO MEASURE PERFORMAN CE; 19
(3) APPROVE COMPENSATION PLANS FOR THE CHIEF EXECUTIVE 20
OFFICER AND EMPLOYEES OF THE CORPORATION ; 21
(4) DESIGNATE A PERSON T O REVIEW AND APPROVE EXPENSE 22
REIMBURSEMENTS OF TH E CHIEF EXECUTIVE OFFICER AND EMPLOYEES OF THE 23
CORPORATION IN ACCORD ANCE WITH STANDARDS ESTABLISHED BY THE BOARD; 24
(5) DESIGNATE A PERSON T O RECEIVE ETHICS COM PLAINTS AND ANY 25
COMPLAINTS INVOLVING THE BOARD, THE CHIEF EXECUTIVE OFFICER, AND 26
EMPLOYEES OF THE CORPORATION ; 27
(6) ESTABLISH POLICIES T HAT GOVERN: 28 HOUSE BILL 599 11
(I) SEVERANCE PACKAGES F OR EMPLOYEES THAT 1
INVOLUNTARILY LEAVE EMPLOYMENT ; 2
(II) TUITION REIMBURSEMEN T AND LIMITS FOR EMP LOYEES; 3
(III) ELIGIBLE EXPENSE REI MBURSEMENT REQUIREME NTS 4
THAT INCLUDE : 5
1. THE TYPES OF EXPENSES THAT ARE CONSIDERED 6
PART OF CORPORATION FUNCTIONS ; 7
2. LIMITS ON REIMBURSEM ENTS AND TIME FRAMES FOR 8
SUBMISSION; AND 9
3. ALLOWABLE TRAVEL EXP ENSES INCLUDING ANY 10
OUT–OF–STATE TRAVEL; 11
(IV) THE USE OF ALL CORPORATION EQUIPMENT , PERSONAL 12
PROPERTY, AND REAL PROPERTY AN D WHETHER ANY PROPER TY MAY BE 13
TRANSFERRED TO A DEP ARTING EMPLOYEE ; AND 14
(V) WHISTLEBLOWER COMPLA INTS AND PROTECTIONS FOR 15
THOSE FILING COMPLAI NTS; AND 16
(7) CONDUCT AN ANNUAL PE RFORMANCE REVIEW OF THE CHIEF 17
OPERATING OFFICER. 18
10–1118. 19
(A) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , THE 20
CORPORATION MAY MAKE QUALIFIED EQUITY INV ESTMENTS AND OTHER F INANCIAL 21
ASSISTANCE AVAILABLE TO PROJECTS IN LOW –INCOME COMMUNITIES I F THE 22
INVESTMENTS ARE MADE ON REVIEW AND APPROV AL OF A WRITTEN APPL ICATION 23
THAT CONTAINS : 24
(1) SUFFICIENT INFORMATI ON TO VERIFY THAT TH E PROJECT IS IN 25
THE STATE; AND 26
(2) A CERTIFICATION OF T HE VERACITY OF THE I NFORMATION BY AN 27
AUTHORIZED SIGNATORY OF THE APPLICANT . 28
(B) IN REGARD TO ANY AND ALL PROGRAMS OF THE CORPORATION , EXCEPT 29 12 HOUSE BILL 599
AS OTHERWISE PROVIDE D IN THIS SUBTITLE , THE CORPORATION SHALL ADO PT 1
REGULATIONS TO GOVER N INVESTMENTS UNDER THIS SUBSECTION THAT SPECIFY: 2
(1) THE TYPES OF BUSINES SES AND PROJECTS IN WHICH AN 3
INVESTMENT MAY BE MA DE; 4
(2) THE BASIC STANDARDS AN ENTERPRISE SHALL MEET TO QUALIFY 5
FOR AN INVESTMENT ; 6
(3) THE AMOUNT OF MONEY AVAILABLE FOR INVEST MENT; 7
(4) THE INVESTMENT POLIC Y STATEMENT OF THE CORPORATION 8
THAT DESCRIBES THE P ROCEDURES , CRITERIA, INVESTMENT PHILOSOPH Y, AND 9
GUIDELINES FOR HOW T HE CORPORATION ’S INVESTMENT DECISIO NS WILL BE 10
MADE; AND 11
(5) A PROCESS FOR CONSID ERING WHETHER INVEST MENTS HELP TO 12
FOSTER INCLUSIVE AND DIVERSE ENTREPRENEUR SHIP, INCLUDING THE 13
CORPORATION ’S SUPPORT FOR LOW –INCOME COMMUNITIES . 14
(C) THE CORPORATION MAY MAKE INVESTMENTS UNDER AN AGREEMENT 15
WITH THE BOARD OF TRUSTEES FOR THE STATE RETIREMENT AND PENSION 16
SYSTEM UNDER § 21–123.2 OF THE STATE PERSONNEL AND PENSIONS ARTICLE. 17
10–1119. 18
THE CORPORATION MAY : 19
(1) PROVIDE EQUITY INVES TMENT TO A QUALIFIED BUSINE SS OR 20
PROJECT IN THE FORM OF A GRANT, LOAN, TAX CREDIT ALLOCATIO N, OR ANY OTHER 21
FORM OF FINANCIAL AS SISTANCE TO CARRY OU T ITS PURPOSES; 22
(2) ACQUIRE, DEVELOP, IMPROVE, MANAGE, MARKET, LICENSE, 23
SUBLICENSE, MAINTAIN, LEASE AS LESSOR OR LESSEE, OR OPERATE A PROJECT IN 24
THE STATE TO CARRY OUT IT S PURPOSES; AND 25
(3) ACQUIRE, DIRECTLY OR INDIRECT LY, FROM A PERSON OR 26
POLITICAL SUBDIVISIO N, BY PURCHASE , GIFT, OR DEVISE, ANY PROPERTY , 27
RIGHTS–OF–WAY, FRANCHISES, EASEMENTS, OR OTHER INTERESTS I N LAND, 28
INCLUDING SUBMERGED LAND AND RIPARIAN RI GHTS: 29
(I) AS NECESSARY OR CONV ENIENT TO IMPROVE OR OPERATE 30
A PROJECT TO CARRY O UT ITS PURPOSES ; AND 31 HOUSE BILL 599 13
(II) ON THE TERMS AND AT THE PRICES THAT THE 1
CORPORATION CONSIDERS REASONABLE . 2
10–1120. 3
A DEBT, CLAIM, OBLIGATION, OR LIABILITY OF THE CORPORATION OR ANY 4
SUBSIDIARY IS NOT : 5
(1) A DEBT, CLAIM, OBLIGATION, OR LIABILITY OF THE STATE, A UNIT 6
OR INSTRUMENTALITY O F THE STATE, OR OF A STATE OFFICER OR STATE 7
EMPLOYEE; OR 8
(2) A PLEDGE OF THE CRED IT OF THE STATE. 9
10–1121. 10
THE CORPORATION IS EXEMPT FROM STATE AND LOCAL TAXES . 11
10–1122. 12
(A) THE BOOKS AND RECORDS OF THE CORPORATION ARE SUBJE CT TO 13
AUDIT: 14
(1) AT ANY TIME BY THE STATE; AND 15
(2) EACH YEAR BY AN INDE PENDENT AUDITOR , INCLUDING AN 16
ANNUAL FINANCIAL STATEMENT UNDER GENERALLY ACCE PTED ACCOUNTING 17
PRINCIPLES. 18
(B) THE CORPORATION SHALL CON DUCT AN INDEPENDENT ASSESSMENT 19
OF THE BOARD AND THE CORPORATION EVERY 5 YEARS. 20
10–1123. 21
(A) (1) ON OR BEFORE OCTOBER 1 EACH YEAR, THE CORPORATION 22
SHALL REPORT TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE 23
STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 24
(2) THE REPORT REQUIRED U NDER THIS SUBSECTION SHALL 25
INCLUDE: 26
(I) A COMPLETE OPERATING AND FINANCIAL STATEM ENT 27 14 HOUSE BILL 599
COVERING THE CORPORATION ’S OPERATIONS; 1
(II) A SUMMARY OF THE CORPORATION ’S ACTIVITIES DURING 2
THE PRECEDING FISCAL YEAR; 3
(III) INFORMATION ON ALL S ALARIES AND ANY INCE NTIVES 4
APPROVED BY THE BOARD FOR CORPORATION EMPLOYEES ; 5
(IV) INFORMATION ON OUTRE ACH, TRAINING, MENTORSHI P, 6
SUPPORT, AND INVESTMENT IN MI NORITY– AND WOMEN –OWNED QUALIFIED 7
BUSINESSES, INCLUDING SUPPORT FO R MARKETING BY THE MARYLAND SMALL 8
BUSINESS DEVELOPMENT FINANCING AUTHORITY; 9
(V) INFORMATION ON ENTIT IES THAT HAVE CURREN T 10
INVESTMENTS AND ENTI TIES THAT RE CEIVED FUNDING OR IN VESTMENTS IN THE 11
CURRENT YEAR ON : 12
1. THE PRINCIPAL BUSINE SS OPERATIONS ; 13
2. THE NUMBER OF EMPLOY EES IN THE STATE AND THE 14
NUMBER OF EMPLOYEES OUTSIDE THE STATE; 15
3. THE CAPITAL OR OTHER INVESTMENTS MADE IN THE 16
STATE; AND 17
4. THE PROPOSED AND ACT UAL JOB CREATION OR 18
CAPITAL INVESTMENT I N THE STATE AS A RESULT OF THE INVESTMENT OR 19
SUPPORT; 20
(VI) INFORMATION ON THE C REATION OF AND APPOI NTMENTS 21
MADE TO AN ADVISORY COMMITTEE AND THE RE SPONSIBILITIES OF TH E ADVISORY 22
COMMITTEE AND MEMBERS OF THE C OMMITTEE; AND 23
(VII) THE POLICIES OF THE BOARD AND ANY CHANGES TO 24
EXISTING POLICIES . 25
(B) (1) ON A QUARTERLY BASIS , THE CORPORATION SHALL REP ORT TO 26
THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 27
ARTICLE, THE JOINT AUDIT AND EVALUATION COMMITTEE AND THE GENERAL 28
ASSEMBLY. 29
(2) THE REPORT REQUIRED U NDER THIS SUBSECTION SHALL 30
INCLUDE A LIST OF TH E BUSINESSES AND PRO JECTS RECEIVING SUPP ORT THROUGH 31 HOUSE BILL 599 15
PROGRAMS ADMINISTERE D BY THE CORPORATION , INCLUDING THOSE RECE IVING 1
INVESTMENTS MADE UND ER § 21–123.2 OF THE STATE PERSONNEL AND PENSIONS 2
ARTICLE. 3
(3) THE LIST OF BUSINESSE S AND PROJECTS RECEI VING SUPPORT 4
SHALL INCLUDE FOR EA CH: 5
(I) THE NUMBER OF EMPLOY EES IN THE STATE; 6
(II) THE NUMBER OF EMPLOY EES OUTSIDE THE STATE; 7
(III) THE CAPITAL OR OTHER INVESTMENTS MADE IN THE STATE; 8
AND 9
(IV) PROPOSED JOB CREATIO N OR CAPITAL INVESTM ENT IN THE 10
STATE AS A RESULT OF THE INVESTMENT OR SU PPORT. 11
(C) THE CORPORATION SHALL PUB LISH ANNUAL FINANCIA L STATEMENTS , 12
AUDIT REPORTS, AND POLICIES OF THE BOARD VISIBLY ON ITS WEBSITE. 13
Article – Housing and Community Development 14
4–508. 15
(a) In this section, “Fund” means the Strategic Demolition and Smart Growth 16
Impact Fund. 17
(b) There is a Strategic Demolition and Smart Growth Impact Fund. 18
(c) The purpose of the Fund is to provide grants and loans to assist in 19
predevelopment activities, including interior and exterior demolition, land assembly, 20
architecture and engineering, [and] site development, DEBT PAYMENTS , AND CREDIT 21
ENHANCEMENT for revitalization projects in designated areas of the State. 22
(d) The Department shall administer the Fund. 23
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 24
the State Finance and Procurement Article. 25
(2) The State Treasurer shall hold the Fund separately, and the 26
Comptroller shall account for the Fund. 27
(f) The Fund consists of: 28
(1) money appropriated in the State budget to the Fund; 29 16 HOUSE BILL 599
(2) repayments of loans made from the Fund; 1
(3) interest earnings of the Fund; and 2
(4) any other money from any other source accepted for the benefit of the 3
Fund. 4
(g) (1) The Fund may be used only to provide grants and loans to government 5
agencies and community development organizations for interior and exterior demolition, 6
land assembly, architecture and engineering, [and] site development, DEBT PAYMENTS , 7
AND CREDIT ENHANCEME NT for revitalization projects in an area designated as: 8
(i) a Sustainable Community; or 9
(ii) a qualified opportunity zone designated under § 1400Z–1 of the 10
Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico 11
County. 12
(2) (i) For fiscal years 2017 through 2019, to be eligible for a grant or 13
loan from the Fund, a government agency or community development organization shall 14
provide evidence of a matching fund that is equal to $1 for every $4 in State funding that 15
the agency or organization is applying for from the Fund. 16
(ii) The matching fund required under subparagraph (i) of this 17
paragraph may include: 18
1. money from the federal government, local government, or 19
any other public or private source; 20
2. real property; 21
3. in–kind contributions; and 22
4. funds expended before the date the grant or loan is 23
awarded. 24
(3) For fiscal year 2020 and each fiscal year thereafter, to be eligible for a 25
grant or loan from the Fund, a government agency or community development organization 26
is not required to provide evidence of a matching fund. 27
(4) The Department shall award grants and loans from the Fund on a 28
competitive basis. 29
(h) (1) The State Treasurer shall invest the money of the Fund in the same 30
manner as other State money may be invested. 31
HOUSE BILL 599 17
(2) Any interest earnings of the Fund shall be credited to the Fund. 1
(i) Expenditures from the Fund may be made only in accordance with the State 2
budget. 3
(j) (1) For fiscal year 2018, the Governor shall include in the annual budget 4
bill or capital budget bill an appropriation of $25,625,000 from general funds or the 5
proceeds from the sale of State general obligation bonds to the Fund, which shall be 6
allocated as follows: 7
(i) $22,125,000 for projects in Baltimore City; and 8
(ii) $3,500,000 for projects throughout the State. 9
(2) For fiscal year 2019, the Governor shall include in the annual budget 10
bill or capital budget bill an appropriation of $28,500,000 from general funds or the 11
proceeds from the sale of State general obligation bonds to the Fund, which shall be 12
allocated as follows: 13
(i) $25,000,000 for projects in Baltimore City; and 14
(ii) $3,500,000 for projects throughout the State. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
1, 2024. 17