EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING 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.
*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 Williams, Boyce, Healey,
Lehman, Stein, Terrasa
Introduced and read first time: January 24, 2024
Assigned to: Environment and Transportation and Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 2, 2024
CHAPTER ______
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 2 HOUSE BILL 599
Annotated Code of Maryland 1
(2018 Replacement Volume and 2023 Supplement) 2
BY adding to 3
Article – Economic Development 4
Section 10–1101 through 10–1123 to be under the new subtitle “Subtitle 11. 5
Maryland Community Investment Corporation” 6
Annotated Code of Maryland 7
(2018 Replacement Volume and 2023 Supplement) 8
BY repealing and reenacting, with amendments, 9
Article – Housing and Community Development 10
Section 4–508 11
Annotated Code of Maryland 12
(2019 Replacement Volume and 2023 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Economic Development 16
9–101. 17
(a) In this division the following words have the meanings indicated. 18
(c) “Department” means the Department of Commerce. 19
(e) “Secretary” means the Secretary of Commerce. 20
SUBTITLE 11. MARYLAND COMMUNITY INVESTMENT CORPORATION . 21
10–1101. 22
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 23
INDICATED. 24
(B) “BOARD” MEANS THE BOARD OF DIRECTORS OF THE CORPORATION . 25
(C) “CORPORATION ” MEANS THE MARYLAND COMMUNITY INVESTMENT 26
CORPORATION . 27
(D) “INVESTMENT COMMITTEE ” MEANS A COMMITTEE AP POINTED BY THE 28
BOARD TO ADVISE ON AN D APPROVE INVESTMENT S AS REQUIRED UNDER THIS 29
SUBTITLE. 30
HOUSE BILL 599 3
(E) “LOW–INCOME COMMUNITY ” MEANS A COMMUNITY IN THE STATE THAT 1
MEETS THE DEFINITION OF A LOW –INCOME COMMUNITY UND ER 26 U.S.C. § 2
45D(E)(1). 3
(F) “NEW MARKETS TAX CREDI T” MEANS THE FEDERAL TA X CREDITS 4
ALLOCATED UNDER 26 U.S.C. § 45D. 5
(G) “QUALIFIED COMMUNITY D EVELOPMENT ENTITY ” MEANS AN ENTITY 6
THAT MEETS THE DEFIN ITION OF A QUALIFIED COMMUNITY DE VELOPMENT ENTITY 7
UNDER 26 U.S.C. § 45D(C)(1). 8
(H) “QUALIFIED EQUITY INVE STMENT” MEANS AN INVESTMENT THAT 9
MEETS THE DEFINITION OF A QUALIFIED EQUIT Y INVESTMENT UNDER 26 U.S.C. § 10
45D(B)(1). 11
10–1102. 12
THIS SUBTITLE SHALL B E LIBERALLY C ONSTRUED TO CARRY OU T THE 13
PURPOSES OF THIS SUB TITLE. 14
10–1103. 15
(A) THERE IS A MARYLAND COMMUNITY INVESTMENT CORPORATION . 16
(B) THE CORPORATION IS A BODY POLITIC AND CORPORAT E AND IS AN 17
INSTRUMENTALITY OF T HE STATE. 18
10–1104. 19
THE PURPOSES OF THE CORPORATION ARE TO: 20
(1) DO ALL THINGS NECESS ARY TO QUALIFY AS A QUALIFIED 21
COMMUNITY DEVELOPMEN T ENTITY; 22
(2) APPLY TO THE U.S. DEPARTMENT OF THE TREASURY TO BE 23
DESIGNATED AS A QUAL IFIED COMMUNITY DEVE LOPMENT ENTITY ; 24
(3) APPLY TO THE U.S. DEPARTMENT OF THE TREASURY FOR AN 25
ALLOCATION OF NEW MA RKETS TAX CREDITS ; 26
(4) RECEIVE, MAKE, AND FACILITATE QUALI FIED EQUITY 27
INVESTMENTS AND FINA NCIAL ASSISTANCE AVA ILABLE IN LOW –INCOME 28
COMMUNITIES IN THE STATE; 29
4 HOUSE BILL 599
(5) ALLOCATE ANY NEW MAR KETS TAX CREDITS REC EIVED BY THE 1
CORPORATION ; 2
(6) COORDINATE WITH OTHE R QUALIFIED COMMUNIT Y 3
DEVELOPMENT ENTITIES IN THE STATE TO HELP ENSURE THAT LOW–INCOME 4
COMMUNITIES ARE RECE IVING THE MAXIMUM BE NEFIT OF QUALIFIED E QUITY 5
INVESTMENTS IN THE STATE; 6
(7) MAKE INVESTMENTS AND FINANCIAL ASSISTANCE AVAILABLE TO 7
LOW–INCOME COMMUNITIES IN THE STATE FROM THE CORPORATION ’S MONEY OR 8
FROM ANY OTHER SOURC E; 9
(8) BUILD A LONG –TERM FINANCIAL CAPAC ITY AND SUSTAINED 10
INVESTMENT IN LOW –INCOME COMMUNITIES I N THE STATE; 11
(9) COORDINATE AND CREAT E PATHWAYS TO FOLLOW –ON FINANCING 12
IN THE STATE; AND 13
(10) FOSTER INCLUSIVE AND DIVERSE ENTREPRENEUR SHIP AND 14
INNOVATION THROUGHOU T THE STATE, WHICH MAY INCLUDE IN ITIATIVES TO RAISE 15
AWARENESS OF PROGRAM S TO ASSIST LOW–INCOME COMMU NITIES. 16
10–1105. 17
(A) A BOARD OF DIRECTORS SHALL MANAG E THE CORPORATION AND ITS 18
UNITS AND EXERCISE I TS CORPORATE POWERS . 19
(B) THE BOARD CONSISTS OF THE FOLLOWING MEMBERS : 20
(1) THE COMPTROLLER OR THE COMPTROLLER ’S DESIGNEE; 21
(2) THE SECRETARY OR THE SECRETARY’S DESIGNEE; 22
(3) THE SECRETARY OF HOUSING AND COMMUNITY DEVELOPMENT 23
OR THE SECRETARY’S DESIGNEE; 24
(4) THE SECRETARY OF PLANNING OR THE SECRETARY’S DESIGNEE; 25
(5) THE SECRETARY OF GENERAL SERVICES OR THE SECRETARY’S 26
DESIGNEE; AND 27
(6) THE FOLLOWING MEMBERS AP POINTED BY THE GOVERNOR WITH 28
THE ADVICE AND CONSE NT OF THE SENATE: 29
HOUSE BILL 599 5
(I) ONE REPRESENTATIVE O F NONPROFIT ENTITIES IN THE 1
STATE; AND 2
(II) ONE REPRESENTATIVE O F LOW–INCOME COMMUNITIES . 3
(C) A MEMBER OF THE BOARD SHALL RESIDE IN THE STATE. 4
(D) IN MAKING APPOINTMENT S TO THE BOARD, THE GOVERNOR SHALL 5
CONSIDER: 6
(1) DIVERSITY; AND 7
(2) ALL GEOGRAPHIC REGIO NS OF THE STATE. 8
(E) A MEMBER OF THE BOARD: 9
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD; 10
BUT 11
(2) IS ENTITLED TO REIMBURS EMENT FOR EXPENSES U NDER THE 12
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 13
(F) (1) THE TERM OF AN APPOIN TED MEMBER IS 4 YEARS. 14
(2) THE TERMS OF THE APPO INTED MEMBERS ARE ST AGGERED AS 15
REQUIRED BY THE TERM S PROVIDED FOR MEMBERS ON OCTOBER 1, 2024. 16
(3) AT THE END OF A TERM , AN APPOINTED MEMBER CONTINUES TO 17
SERVE UNTIL A SUCCES SOR IS APPOINTED AND QUALIFIES. 18
(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 19
ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 20
QUALIFIES. 21
(G) (1) THIS SUBSECTION APPLI ES TO A MEMBER WHO I S APPOINTED BY 22
THE GOVERNOR UNDER SUBSEC TION (B)(6) OF THIS SECTION. 23
(2) THE GOVERNOR MAY REMOVE A N APPOINTED MEMBER F OR 24
INCOMPETENCE , MISCONDUCT , OR FAILURE TO PER FORM THE DUTIES OF T HE 25
POSITION. 26
10–1106. 27
THE BOARD SHALL ELECT A C HAIR FROM AMONG ITS MEMBERS. 28
6 HOUSE BILL 599
10–1107. 1
(A) FOUR MEMBERS OF THE BOARD ARE A QUORUM . 2
(B) A MAJORITY VOTE OF THE MEMBERS PRESENT AT A MEETING HAVING A 3
QUORUM IS NEEDED FOR THE CORPORATION TO ACT. 4
10–1108. 5
(A) THE BOARD SHALL APPOINT M EMBERS OF AN ADVISOR Y COMMITTEE . 6
(B) THE MEMBERSHIP OF THE ADVISORY COMMITTEE S HALL BE COMPOSED 7
OF MEMBERS WHO ARE: 8
(1) REQUIRED FOR THE CORPORATION TO QUALIF Y AS A QUALIFIED 9
COMMUNITY DEVELOPMEN T ENTITY UNDER 26 U.S.C. § 45D(C)(1); 10
(2) RESIDENTS OF THE STATE; AND 11
(3) GEOGRAPHICALLY REPRE SENTATIVE OF THE LOC ATIONS OF 12
LOW–INCOME COMMUNITIES I N THE STATE. 13
(C) THE BOARD SHALL ADOPT POL ICIES ESTABLISHING T HE 14
RESPONSIBILITIES OF THE ADVISORY COMMITTEE . 15
(D) THE ADVISORY COMMITTE E SHALL PRIORITIZE P ROJECTS OWNED OR 16
OPERATED BY ENTITIES THAT HAVE THEIR PRIN CIPAL PLACE OF BUSIN ESS IN THE 17
STATE WHEN ADVISING O N INVESTMENTS MADE I N LOW–INCOME COMMUNITIES I N 18
THE STATE. 19
10–1109. 20
(A) THE CORPORAT ION SHALL ESTABLISH AN INVESTMENT COMMIT TEE. 21
(B) THE CORPORATION SHALL ADO PT REGULATIONS ESTAB LISHING: 22
(1) THE RESPONSIBILITIES OF THE INVESTMENT CO MMITTEE; AND 23
(2) THE PROCEDURES FOR T HE APPOINTMENT OF IN VESTMENT 24
COMMITTEE MEMBERS . 25
(C) MEMBERS O F THE INVESTMENT COM MITTEE SHALL BE 26
GEOGRAPHICALLY REPRE SENTATIVE OF THE LOC ATIONS OF LOW –INCOME 27
COMMUNITIES IN THE STATE. 28
HOUSE BILL 599 7
(D) THE INVESTMENT COMMIT TEE SHALL PRIORITIZE PROJECTS THAT ARE 1
OWNED OR OPERATED BY ENTITIES THAT HAVE T HEIR PRINCIPAL PLACE OF 2
BUSINESS IN THE STATE. 3
10–1110. 4
(A) THE CORPORATION SHALL EMP LOY A CHIEF EXECUTIVE OFFICER. 5
(B) THE CHIEF EXECUTIVE OFFICER SHALL HAVE EX PERIENCE WITH AND 6
POSSESS QUALIFICATIO NS RELEVANT TO THE A CTIVITIES AND PURPOS ES OF THE 7
CORPORATION . 8
(C) THE CHIEF EXECUTIVE OFFICER MAY NOT BE A MEMBER OF THE 9
BOARD. 10
10–1111. 11
(A) THE ATTORNEY GENERAL IS THE LEGAL ADVISOR TO THE 12
CORPORATION . 13
(B) (1) THE ATTORNEY GENERAL SHALL ASSIGN TO THE CORPORATION 14
ASSISTANT ATTORNEYS GENERAL. 15
(2) THE ATTORNEY GENERAL SHALL DESIGNATE ONE ASSISTANT 16
ATTORNEY GENERAL AS GENERAL CO UNSEL TO THE CORPORATION . 17
(3) (I) THE GENERAL COUNSEL T O THE CORPORATION SHALL : 18
1. ADVISE THE CHIEF EXECUTIVE OFFICER, THE 19
BOARD, AND ANY OTHER OFFICI AL OF THE CORPORATION AS REQUES TED BY THE 20
CORPORATION ; 21
2. SUPERVISE THE OTHER ASSISTANT ATTORNEYS 22
GENERAL ASSIGNED TO T HE CORPORATION ; AND 23
3. PERFORM FOR THE CORPORATION OTHER DUT IES 24
THE ATTORNEY GENERAL ASSIGNS . 25
(II) THE GENERAL COUNSEL M AY NOT PROVIDE ANY O THER 26
ASSISTANCE NOT S PECIFIED IN SUBPARAG RAPH (I) OF THIS PARAGRAPH . 27
(C) WITH THE APPROVAL OF THE ATTORNEY GENERAL, THE CORPORATION 28
MAY RETAIN ANY ADDIT IONAL NECESSARY ATTO RNEYS. 29
8 HOUSE BILL 599
10–1112. 1
(A) THE DEPARTMENT AND THE DEPARTMENT OF HOUSING AND 2
COMMUNITY DEVELOPMENT MAY PROVIDE STAFF TO THE CORPORATION AS 3
PROVIDED IN THE STATE BUDGET . 4
(B) THE CORPORATION MAY RETAI N ANY NECESSARY ACCO UNTANTS, 5
ENGINEERS, FINANCIAL ADVISORS , OR OTHER CONSULTANTS . 6
10–1113. 7
(A) EXCEPT AS PROVIDED IN SUBSECTIONS (B), (C), AND (E) OF THIS 8
SECTION, THE CORPORATION IS EXEMPT FROM TITLE 10 AND DIVISION II OF THE 9
STATE FINANCE AND PROCUREMENT ARTICLE. 10
(B) THE CORPORATION IS SUBJEC T TO THE PUBLIC INFORMATION ACT. 11
(C) THE BOARD, THE OFFICERS AND EMP LOYEES OF THE CORPORATION , 12
MEMBERS OF THE INVESTMENT COMMITTEE , AND MEMBERS OF ANY A DVISORY 13
COMMITTEE APPOINTED ARE SUBJECT TO THE PUBLIC ETHICS LAW. 14
(D) THE OFFICERS AND EMPL OYEES OF THE CORPORATION ARE NOT 15
SUBJECT TO THE PROVI SIONS OF DIVISION I OF THE STATE PERSONNEL AND 16
PENSIONS ARTICLE THAT GOVERN THE STATE PERSONNEL MANAGEMENT SYSTEM. 17
(E) (1) THE CORPORATION , THE BOARD, AND EMPLOYEES OF THE 18
CORPORATION ARE SUBJE CT TO TITLE 12, SUBTITLE 4 OF THE STATE FINANCE AND 19
PROCUREMENT ARTICLE. 20
(2) THE BOARD, THE OFFICERS AND EMP LOYEES OF THE 21
CORPORATION, THE MEMBERS OF THE I NVESTMENT COMMITTEE , AND THE 22
MEMBERS OF ANY ADVIS ORY COMMITTEE APPOIN TED SHALL DISCLOSE T O THE 23
STATE ETHICS COMMISSION WHETHER TH EY ARE EMPLOYED BY O R HAVE A 24
FINANCIAL INTEREST I N AN ENTITY THAT CUR RENTLY HAS OR WILL A PPLY FOR 25
FUNDS OR AN INVESTME NT IN A PROGRAM ADMI NISTERED BY THE CORPORATION . 26
(F) FOR PURPOSES OF THE OPEN MEETINGS ACT, A PROJECT SITE VISIT OR 27
EDUCATIONAL FIELD TO UR MAY NOT BE CONSID ERED A MEETING OF TH E 28
CORPORATION IF NO ORG ANIZATIONAL BUSINESS IS CONDUCTED . 29
10–1114. 30
(A) THE CORPORATION SHALL EST ABLISH A SYSTEM OF F INANCIAL 31
ACCOUNTING , CONTROLS, AUDITS, AND REPORTS . 32 HOUSE BILL 599 9
(B) THE FISCAL YEAR OF TH E CORPORATION BEGINS ON JULY 1 AND ENDS 1
ON THE FOLLOWING JUNE 30. 2
10–1115. 3
(A) THE CORPORATION MAY CREAT E AND ADMINISTER THE ACCOU NTS 4
THAT IT REQUIRES . 5
(B) THE CORPORATION SHALL DEP OSIT ITS MONEY INTO A STATE OR 6
NATIONAL BANK OR A F EDERALLY INSURED SAV INGS AND LOAN ASSOCI ATION THAT 7
HAS A TOTAL PAID–IN CAPITAL OF AT LEA ST $1,000,000. 8
(C) THE CORPORATION MAY DES IGNATE THE TRUST DEP ARTMENT OF A 9
STATE BANK , NATIONAL BANK , OR SAVINGS AND LOAN ASSOCIATION AS A 10
DEPOSITORY TO RECEIV E SECURITIES THAT TH E CORPORATION OWNS OR 11
ACQUIRES. 12
(D) UNLESS AN AGREEMENT O R COVENANT BETWEEN T HE CORPORATION 13
AND THE HOLDERS OF I TS OBLIGATIONS LIMITS CLA SSES OF INVESTMENTS , THE 14
CORPORATION MAY INVES T ITS MONEY IN BONDS OR OTHER OBLIGATIONS OF, OR 15
GUARANTEED AS TO PRI NCIPAL AND INTEREST BY, THE UNITED STATES, THE 16
STATE, OR A GOVERNMENTAL UN IT. 17
(E) ANY INCOME FROM THE I NVESTMENT OF MON EY OF THE CORPORATION , 18
INCLUDING INVESTMENT PROCEEDS AND EARNING S, SHALL BE CREDITED TO THE 19
CORPORATION . 20
10–1116. 21
THE CORPORATION MAY : 22
(1) ADOPT BYLAWS FOR THE CONDUCT OF ITS BUSIN ESS; 23
(2) ADOPT A SEAL; 24
(3) MAINTAIN OFFICES AT A PLACE IT DESIGNATES IN THE STATE; 25
(4) ACCEPT LOANS , GRANTS, INVESTMENTS , OR ASSISTANCE OF ANY 26
KIND FROM THE FEDERA L OR STATE GOVERNMENT , A LOCAL GOVERNMENT , A 27
COLLEGE OR UNIVERSIT Y, OR A PRIVATE SOURCE ; 28
(5) ENTER INTO CONTRACTS AND OTHER LEGAL INST RUMENTS; 29
10 HOUSE BILL 599
(6) SUE OR BE SUED; 1
(7) ACQUIRE, PURCHASE, HOLD, LEASE AS LESSEE , AND USE: 2
(I) A FRANCHISE, PATENT, OR LICENSE; 3
(II) ANY REAL, PERSONAL, MIXED, TANGIBLE, OR INTANGIBLE 4
PROPERTY; OR 5
(III) AN INTEREST IN THE P ROPERTY LISTED IN TH IS ITEM; 6
(8) SELL, LEASE AS LESSOR , TRANSFER, LICENSE, ASSIGN, OR 7
DISPOSE OF PROPERTY OR A PROPERTY INTERE ST THAT IT ACQUIRES ; 8
(9) FIX AND COLLECT RATE S, RENTALS, FEES, ROYALTIES, AND 9
CHARGES FOR SERVICES AND RESOURCES IT PRO VIDES OR MAKES AVAIL ABLE; 10
(10) CREATE, OWN, CONTROL, OR BE A MEMBER OF A CORPORATION , 11
LIMITED LIABILITY CO MPANY, PARTNERSHIP , OR OTHER ENTITY , WHETHER 12
OPERATED FOR PROFIT OR NOT FOR PROFIT ; 13
(11) EXERCISE POWER USUAL LY POSSESSED BY A PR IVATE 14
CORPORATION IN PERFO RMING SIMILAR FUNCTI ONS UNLESS TO DO SO WOULD 15
CONFLICT WITH STATE LAW; AND 16
(12) DO ALL THINGS NECESS ARY OR CONVENIENT TO CARRY OUT THIS 17
SUBTITLE. 18
10–1117. 19
THE BOARD SHALL: 20
(1) DEVELOP A PUBLIC AND INTERNAL STRATEGIC P LAN THAT 21
INCLUDES: 22
(I) PERFORMANCE GOALS AN D MEASURES; 23
(II) A MISSION STATEMENT AND CORE VALUES ; 24
(III) AN ANALYSIS OF STREN GTHS, WEAKNESSES , 25
OPPORTUNITIES , AND THREATS ; 26
(IV) ACTION PLANS; AND 27
(V) YEARLY AND LONG –TERM GOALS AND OBJEC TIVES; 28 HOUSE BILL 599 11
(2) REVIEW STRATEGIC PLA NS AND UPDATE THE PLANS ANNUALLY 1
TO MEASURE PERFORMAN CE; 2
(3) APPROVE COMPENSATION PLANS FOR THE CHIEF EXECUTIVE 3
OFFICER AND EMPLOYEES OF THE CORPORATION ; 4
(4) DESIGNATE A PERSON T O REVIEW AND APPROVE EXPENSE 5
REIMBURSEMENTS OF TH E CHIEF EXECUTIVE OFFICER AND EMPLOYEES OF THE 6
CORPORATION IN ACCORD ANCE WITH STANDARDS ESTABLISHED BY THE BOARD; 7
(5) DESIGNATE A PERSON T O RECEIVE ETHICS COM PLAINTS AND ANY 8
COMPLAINTS INVOLVING THE BOARD, THE CHIEF EXECUTIVE OFFICER, AND 9
EMPLOYEES OF THE CORPORATION ; 10
(6) ESTABLISH POLICIES THAT GOVERN : 11
(I) SEVERANCE PACKAGES F OR EMPLOYEES THAT 12
INVOLUNTARILY LEAVE EMPLOYMENT ; 13
(II) TUITION REIMBURSEMEN T AND LIMITS FOR EMP LOYEES; 14
(III) ELIGIBLE EXPENSE REI MBURSEMENT REQUIREME NTS 15
THAT INCLUDE : 16
1. THE TYPES OF EXPENSE S THAT ARE CONSIDERED 17
PART OF CORPORATION FUNCTIONS ; 18
2. LIMITS ON REIMBURSEM ENTS AND TIME FRAMES FOR 19
SUBMISSION; AND 20
3. ALLOWABLE TRAVEL EXP ENSES INCLUDING ANY 21
OUT–OF–STATE TRAVEL; 22
(IV) THE USE OF ALL CORPORATION EQUIPMENT , PERSONAL 23
PROPERTY, AND REAL PROPERTY AND WHETHER ANY PROPERTY MAY BE 24
TRANSFERRED TO A DEP ARTING EMPLOYEE ; AND 25
(V) WHISTLEBLOWER COMPLA INTS AND PROTECTIONS FOR 26
THOSE FILING COMPLAI NTS; AND 27
(7) CONDUCT AN ANNUAL PE RFORMANCE REVIEW OF THE CHIEF 28
OPERATING OFFICER. 29
12 HOUSE BILL 599
10–1118. 1
(A) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , THE 2
CORPORATION MAY MAKE QUALIFIED EQUITY INV ESTMENTS AND OTHER F INANCIAL 3
ASSISTANCE AVAILABLE TO PROJECTS IN LOW –INCOME COMMUNITIES I F THE 4
INVESTMENTS ARE MADE ON REVIEW AND APPROV AL OF A WRITTEN APPL ICATION 5
THAT CONTAINS : 6
(1) SUFFICIENT INFORMATI ON TO VERIFY THAT TH E PROJECT IS IN 7
THE STATE; AND 8
(2) A CERTIFICATION OF T HE VERACITY OF THE I NFORMATION BY AN 9
AUTHORIZED SIGNATORY OF THE APPLICANT . 10
(B) IN REGARD TO ANY AND ALL PROGRAMS OF THE CORPORATION , EXCEPT 11
AS OTHERWISE PROVIDE D IN THIS SUBTITLE , THE CORPORATION SHALL ADO PT 12
REGULATIONS TO GOVER N INVESTMENTS UNDER THIS SUBSECTION THAT SPECIFY: 13
(1) THE TYPES OF BUSINES SES AND PROJECTS IN WHICH AN 14
INVESTMENT MAY BE MA DE; 15
(2) THE BASIC STANDARDS AN ENTERPRI SE SHALL MEET TO QUA LIFY 16
FOR AN INVESTMENT ; 17
(3) THE AMOUNT OF MONEY AVAILABLE FOR INVEST MENT; 18
(4) THE INVESTMENT POLIC Y STATEMENT OF THE CORPORATION 19
THAT DESCRIBES THE P ROCEDURES , CRITERIA, INVESTMENT PHILOSOPH Y, AND 20
GUIDELINES FOR HOW THE CORPORATION ’S INVESTMENT DECISIO NS WILL BE 21
MADE; AND 22
(5) A PROCESS FOR CONSID ERING WHETHER INVEST MENTS HELP TO 23
FOSTER INCLUSIVE AND DIVERSE ENTREPRENEUR SHIP, INCLUDING THE 24
CORPORATION ’S SUPPORT FOR LOW –INCOME COMMUNITIES . 25
(C) THE CORPORATION MAY MAKE INVESTME NTS UNDER AN AGREEME NT 26
WITH THE BOARD OF TRUSTEES FOR THE STATE RETIREMENT AND PENSION 27
SYSTEM UNDER § 21–123.2 OF THE STATE PERSONNEL AND PENSIONS ARTICLE. 28
10–1119. 29
THE CORPORATION MAY : 30
HOUSE BILL 599 13
(1) PROVIDE EQUITY INVES TMENT TO A QUALIFIED BUSINESS OR 1
PROJECT IN THE FORM OF A GRANT, LOAN, TAX CREDIT ALLOCATIO N, OR ANY OTHER 2
FORM OF FINANCIAL AS SISTANCE TO CARRY OU T ITS PURPOSES; 3
(2) ACQUIRE, DEVELOP, IMPROVE, MANAGE, MARKET, LICENSE, 4
SUBLICENSE, MAINTAIN, LEASE AS LESSOR OR L ESSEE, OR OPERATE A PROJECT IN 5
THE STATE TO CARRY OUT IT S PURPOSES; AND 6
(3) ACQUIRE, DIRECTLY OR INDIRECT LY, FROM A PERSON OR 7
POLITICAL SUBDIVISIO N, BY PURCHASE , GIFT, OR DEVISE, ANY PROPERTY , 8
RIGHTS–OF–WAY, FRANCHISES, EASEMENTS, OR OTHER INTERESTS I N LAND, 9
INCLUDING SUBMERGED LAND AND RIPARIAN RIGHTS : 10
(I) AS NECESSARY OR CONV ENIENT TO IMPROVE OR OPERATE 11
A PROJECT TO CARRY O UT ITS PURPOSES ; AND 12
(II) ON THE TERMS AND AT THE PRICES THAT THE 13
CORPORATION CONSIDERS REASONABLE . 14
10–1120. 15
A DEBT, CLAIM, OBLIGATION, OR LIABILITY OF THE CORPORATION OR ANY 16
SUBSIDIARY IS NOT : 17
(1) A DEBT, CLAIM, OBLIGATION, OR LIABILITY OF THE STATE, A UNIT 18
OR INSTRUMENTALITY O F THE STATE, OR OF A STATE OFFICER OR STATE 19
EMPLOYEE; OR 20
(2) A PLEDGE OF THE CRED IT OF THE STATE. 21
10–1121. 22
THE CORPORATION IS EXEMPT FROM STATE AND LOCAL TAXES . 23
10–1122. 24
(A) THE BOOKS AND RECORDS OF THE CORPORATION ARE SUBJE CT TO 25
AUDIT: 26
(1) AT ANY TIME BY THE STATE; AND 27
(2) EACH YEAR BY AN INDE PENDENT AUDITOR , INCLUDING AN 28
ANNUAL FINANCIAL S TATEMENT UNDER GENER ALLY ACCEPTED ACCOUN TING 29
PRINCIPLES. 30 14 HOUSE BILL 599
(B) THE CORPORATION SHALL CON DUCT AN INDEPENDENT ASSESSMENT 1
OF THE BOARD AND THE CORPORATION EVERY 5 YEARS. 2
10–1123. 3
(A) (1) ON OR BEFORE OCTOBER 1 EACH YEAR, THE CORPORATION 4
SHALL REPORT TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE 5
STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 6
(2) THE REPORT REQUIRED U NDER THIS SUBSECTION SHALL 7
INCLUDE: 8
(I) A COMPLETE OPERATING AND FINANCIAL STATEM ENT 9
COVERING THE CORPORATION ’S OPERATIONS; 10
(II) A SUMMARY OF THE CORPORATION ’S ACTIVITIES DURING 11
THE PRECEDING FISCAL YEAR; 12
(III) INFORMATION ON ALL S ALARIES AND ANY INCE NTIVES 13
APPROVED BY THE BOARD FOR CORPORATION EMPLOYEES ; 14
(IV) INFORMATION ON OUTRE ACH, TRAINING, MENTORSHIP , 15
SUPPORT, AND INVESTMENT IN MI NORITY– AND WOMEN –OWNED QUALIFIED 16
BUSINESSES, INCLUDING SUPPORT FO R MARKETING BY THE MARYLAND SMALL 17
BUSINESS DEVELOPMENT FINANCING AUTHORITY; 18
(V) INFORMATION ON ENTIT IES THAT HAVE CURREN T 19
INVESTMENTS AND ENTI TIES THAT RECEIVED F UNDING OR INVESTMENTS IN THE 20
CURRENT YEAR ON : 21
1. THE PRINCIPAL BUSINE SS OPERATIONS ; 22
2. THE NUMBER OF EMPLOY EES IN THE STATE AND THE 23
NUMBER OF EMPLOYEES OUTSIDE THE STATE; 24
3. THE CAPITAL OR OTHER INVESTMENTS MADE IN THE 25
STATE; AND 26
4. THE PRO POSED AND ACTUAL JOB CREATION OR 27
CAPITAL INVESTMENT I N THE STATE AS A RESULT OF THE INVESTMENT OR 28
SUPPORT; 29
HOUSE BILL 599 15
(VI) INFORMATION ON THE C REATION OF AND APPOI NTMENTS 1
MADE TO AN ADVISORY COMMITTEE AND THE RE SPONSIBILITIES OF TH E ADVISORY 2
COMMITTEE AND MEMBER S OF THE COMMITTEE ; AND 3
(VII) THE POLICIES OF THE BOARD AND ANY CHANGES TO 4
EXISTING POLICIES . 5
(B) (1) ON A QUARTERLY BASIS , THE CORPORATION SHALL REP ORT TO 6
THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 7
ARTICLE, THE JOINT AUDIT AND EVALUATION COMMITTEE AND THE GENERAL 8
ASSEMBLY. 9
(2) THE REPORT REQUIRED U NDER THIS SUBSECTION SHALL 10
INCLUDE A LIST OF TH E BUSINESSES AND PRO JECTS RECEIVING SUPP ORT THROUGH 11
PROGRAMS ADMINISTERE D BY THE CORPORATION , INCLUDING THOSE RECE IVING 12
INVESTMENT S MADE UNDER § 21–123.2 OF THE STATE PERSONNEL AND PENSIONS 13
ARTICLE. 14
(3) THE LIST OF BUSINESSE S AND PROJECTS RECEI VING SUPPORT 15
SHALL INCLUDE FOR EA CH: 16
(I) THE NUMBER OF EMPLOY EES IN THE STATE; 17
(II) THE NUMBER OF EMPLOY EES OUTSIDE THE STATE; 18
(III) THE CAPITAL OR OTHER INVESTMENTS MADE IN THE STATE; 19
AND 20
(IV) PROPOSED JOB CREATIO N OR CAPITAL INVESTM ENT IN THE 21
STATE AS A RESULT OF THE INVESTMENT OR SU PPORT. 22
(C) THE CORPORATION SHALL PUB LISH ANNUAL FINANCIA L STATEMENTS , 23
AUDIT REPORTS , AND POLICIES OF THE BOARD VISIBLY ON ITS WEBSITE. 24
Article – Housing and Community Development 25
4–508. 26
(a) In this section, “Fund” means the Strategic Demolition and Smart Growth 27
Impact Fund. 28
(b) There is a Strategic Demolition and Smart Growth Impact Fund. 29
(c) The purpose of the Fund is to provide grants and loans to assist in 30
predevelopment activities, including interior and exterior demolition, land assembly, 31 16 HOUSE BILL 599
architecture and engineering, [and] site development, DEBT PAYMENTS , AND CREDIT 1
ENHANCEMENT for revitalization projects in designated areas of the State. 2
(d) The Department shall administer the Fund. 3
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 4
the State Finance and Procurement Article. 5
(2) The State Treasurer shall hold the Fund separately, and the 6
Comptroller shall account for the Fund. 7
(f) The Fund consists of: 8
(1) money appropriated in the State budget to the Fund; 9
(2) repayments of loans made from the Fund; 10
(3) interest earnings of the Fund; and 11
(4) any other money from any other source accepted for the benefit of the 12
Fund. 13
(g) (1) The Fund may be used only to provide grants and loans to government 14
agencies and community development organizations for interior and exterior demolition, 15
land assembly, architecture and engineering, [and] site development, DEBT PAYMENTS , 16
AND CREDIT ENHANCEME NT for revitalization projects in an area designated as: 17
(i) a Sustainable Community; or 18
(ii) a qualified opportunity zone designated under § 1400Z–1 of the 19
Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico 20
County. 21
(2) (i) For fiscal years 2017 through 2019, to be eligible for a grant or 22
loan from the Fund, a government agency or community development organization shall 23
provide evidence of a matching fund that is equal to $1 for every $4 in State funding that 24
the agency or organization is applying for from the Fund. 25
(ii) The matching fund required under subparagraph (i) of this 26
paragraph may include: 27
1. money from the federal government, local government, or 28
any other public or private source; 29
2. real property; 30
3. in–kind contributions; and 31 HOUSE BILL 599 17
4. funds expended before the date the grant or loan is 1
awarded. 2
(3) For fiscal year 2020 and each fiscal year thereafter, to be eligible for a 3
grant or loan from the Fund, a government agency or community development organization 4
is not required to provide evidence of a matching fund. 5
(4) The Department shall award grants and loans from the Fund on a 6
competitive basis. 7
(h) (1) The State Treasurer shall invest the money of the Fund in the same 8
manner as other State money may be invested. 9
(2) Any interest earnings of the Fund shall be credited to the Fund. 10
(i) Expenditures from the Fund may be made only in accordance with the State 11
budget. 12
(j) (1) For fiscal year 2018, the Governor shall include in the annual budget 13
bill or capital budget bill an appropriation of $25,625,000 from general funds or the 14
proceeds from the sale of State general obligation bonds to the Fund, which shall be 15
allocated as follows: 16
(i) $22,125,000 for projects in Baltimore City; and 17
(ii) $3,500,000 for projects throughout the State. 18
(2) For fiscal year 2019, the Governor shall include in the annual budget 19
bill or capital budget bill an appropriation of $28,500,000 from general funds or the 20
proceeds from the sale of State general obligation bonds to the Fund, which shall be 21
allocated as follows: 22
(i) $25,000,000 for projects in Baltimore City; and 23
(ii) $3,500,000 for projects throughout the State. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
1, 2024. 26