EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 30
C8 4lr1106
(PRE–FILED)
By: Senator Ellis
Requested: October 23, 2023
Introduced and read first time: January 10, 2024
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Maryland Economic Development Assistan ce Authority and Fund – High Impact 2
Development Project Program 3
FOR the purpose of establishing the High Impact Development Project Program within the 4
Department of Commerce to provide certain financial assistance to certain industrial 5
development agencies or enterprises undertaking high impact, placemaking projects 6
that will support certain manufacturing activities; requiring the Department to 7
award financial assistance to certain entities carrying out high impact development 8
projects under certain circumstances and subject to certain limitations; establishing 9
a High Impact Development Project Account within the Maryland Economic 10
Development Assistance Fund; and generally relating to the Maryland Economic 11
Development Assistance Authority and Fund and the High Impact Development 12
Project Program. 13
BY renumbering 14
Article – Economic Development 15
Section 5–301(o) through (w) 16
to be Section 5–301(q) through (y), respectively 17
Annotated Code of Maryland 18
(2018 Replacement Volume and 2023 Supplement) 19
BY repealing and reenacting, without amendments, 20
Article – Economic Development 21
Section 5–301(a), (g), and (l) through (n), 5–319(a)(2), 5–320(a) and (c), and 5–325(a) 22
and (b)(1) 23
Annotated Code of Maryland 24
(2018 Replacement Volume and 2023 Supplement) 25
BY adding to 26
Article – Economic Development 27 2 SENATE BILL 30
Section 5–301(o) and (p); and 5–352 through 5–354 to be under the new part “Part 1
VIII. High Impact Development Project Program” 2
Annotated Code of Maryland 3
(2018 Replacement Volume and 2023 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – Economic Development 6
Section 5–311, 5–313, 5–321(b), 5–323, 5–324(a), and 5–325(b)(2) 7
Annotated Code of Maryland 8
(2018 Replacement Volume and 2023 Supplement) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That Section(s) 5–301(o) through (w) of Article – Economic Development of the Annotated 11
Code of Maryland be renumbered to be Section(s) 5–301(q) through (y), respectively. 12
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 13
as follows: 14
Article – Economic Development 15
5–301. 16
(a) In this subtitle the following words have the meanings indicated. 17
(g) “Authority” means the Maryland Economic Development Assistance 18
Authority. 19
(l) “Corporation” means the Maryland Economic Development Corporation. 20
(m) “Financial assistance” means a grant, loan, or investment provided under this 21
subtitle. 22
(n) “Fund” means the Maryland Economic Development Assistance Fund. 23
(O) “HIGH IMPACT DEVELOPME NT PROJECT” MEANS A MANUFACTURING 24
PROJECT IN WHICH AN INDUSTRIAL DEVELOPME NT AGENCY OR ENTERPR ISE 25
UNDERTAKING THE PROJ ECT WILL PRIVATELY I NVEST AN AMOUNT OF A T LEAST 26
$50,000,000. 27
(P) “INDUSTRIAL DEVELOPMEN T AGENCY” MEANS ANY INCORPORAT ED 28
ORGANIZATION , FOUNDATION , ASSOCIATION, OR AGENCY: 29
(1) THAT HAS AS ITS PRIM ARY FUNCTION THE PRO MOTION, 30
ENCOURAGEMENT , AND DEVELOPMENT OF I NDUSTRIAL, COMMERCIAL , 31
MANUFACTURING , AND TOURIST ENTERPRI SES OR PROJECTS IN T HE STATE; AND 32
SENATE BILL 30 3
(2) TO WHOSE MEMBERS OR SHAREHOLDERS NO PROF IT INURES. 1
5–311. 2
The purposes of the Fund are to: 3
(1) expand employment opportunities in the State by providing financial 4
assistance to businesses that are engaged in eligible industry sectors, including financial 5
assistance for: 6
(i) aquaculture projects; 7
(ii) arts and entertainment enterprises; 8
(iii) arts and entertainment projects; and 9
(iv) creation and expansion of child care facilities; 10
(2) provide financial assistance for the redevelopment of qualified 11
brownfields sites; 12
(3) provide financial assistance to local governments and the Corporation 13
for economic development projects; [and] 14
(4) provide grants to local economic development funds; AND 15
(5) PROVIDE FINANCIAL ASSISTANCE FOR HIGH IMPACT 16
DEVELOPMENT PROJECTS . 17
5–313. 18
(A) The Fund consists of: 19
(1) money appropriated in the State budget to the Fund; 20
(2) money made available to the Fund through federal programs or private 21
contributions; 22
(3) repayments of principal and interest from loans made from the Fund; 23
(4) proceeds from the sale, disposition, lease, or rental of collateral related 24
to financial assistance provided by the Department under this subtitle; 25
(5) application or other fees paid to the Fund to process requests for 26
financial assistance; 27
4 SENATE BILL 30
(6) recovery of an investment made by the Department in a business, 1
including an arrangement under which part of the investment is recovered through: 2
(i) a requirement that the Department receive a proportion of cash 3
flow, commissions, royalties, or license fees; 4
(ii) the repurchase from the Department of any of its investment 5
interest; or 6
(iii) the sale of an appreciated asset; 7
(7) repayments received from recipients of conditional grants from the 8
Department; 9
(8) money collected under § 9–229 of the Tax – Property Article; 10
(9) repayments on or recoveries from financial assistance provided from 11
the former: 12
(i) Brownfields Revitalization Incentive Fund; 13
(ii) Child Care Facilities Direct Loan Fund; 14
(iii) Child Care Special Loan Fund; 15
(iv) Maryland Industrial and Commercial Redevelopment Fund; 16
(v) Maryland Industrial Land Fund; 17
(vi) Maryland Seafood and Aquaculture Loan Fund; and 18
(vii) Smart Growth Economic Development Infrastructure Fund; 19
[and] 20
(10) MONEY IN THE HIGH IMPACT DEVELOPMENT PROJECT ACCOUNT 21
ESTABLISHED UNDER SU BSECTION (B) OF THIS SECTION; AND 22
(11) any other money made available to the Fund. 23
(B) (1) WITHIN THE FUND IS A HIGH IMPACT DEVELOPMENT PROJECT 24
ACCOUNT. 25
(2) THE ACCOUNT CONSISTS OF REPAYMENTS ON OR REC OVERIES 26
FROM FINANCIAL ASSIS TANCE PROVIDED FOR H IGH IMPACT DEVELOPME NT 27
PROJECTS UNDER PART VIII OF THIS SUBTITLE. 28
SENATE BILL 30 5
(3) FOR FISCAL YEAR 2026, THE GOVERNOR SHALL INCLUDE IN THE 1
ANNUAL BUDGET BILL A N APPROPRIATION OF $600,000,000 TO THE FUND TO BE 2
USED FOR FINANCIAL A SSISTANCE UNDER THE HIGH IMPACT DEVELOPMENT 3
PROJECT ACCOUNT. 4
5–319. 5
(a) (2) Except as provided in paragraph (3) of this subsection, financial 6
assistance from the Fund exceeding $2,500,000 requires approval by the Authority. 7
5–320. 8
(a) To be eligible for financial assistance from the Fund, an applicant shall be: 9
(1) a local economic development fund that meets the criteria set forth in 10
Part V of this subtitle; or 11
(2) an individual, private business, nonprofit entity, or local government, 12
or the Corporation that intends to use the requested financial assistance for a project that: 13
(i) except as provided in subsection (b) of this section, is in an 14
eligible industry sector under § 5–321 of this subtitle; and 15
(ii) has a strong potential for expanding or retaining employment 16
opportunities in the State. 17
(c) In form and content acceptable to the Department, an applicant for financial 18
assistance from the Fund shall submit to the Department an application that contains: 19
(1) the information that the Department or Authority considers necessary 20
to evaluate the request for financial assistance; and 21
(2) for a Tier I county project: 22
(i) a marketing plan designed to market the project to prospective 23
businesses; 24
(ii) a statement of planned marketing expenditures as a percent of 25
the total financial assistance amount requested; and 26
(iii) a plan for the project that is consistent with the county’s local 27
strategic economic development plan as to the location and type of project. 28
5–321. 29
(b) (1) For the purpose of providing financial assistance under this subtitle, 30
the following are deemed to be in eligible industry sectors: 31 6 SENATE BILL 30
(i) aquaculture projects; 1
(ii) arts and entertainment enterprises; 2
(iii) arts and entertainment projects; 3
(iv) redevelopment of qualified brownfields sites; 4
(v) creation or expansion of child care facilities; 5
(vi) projects in areas that are declared to be federal disaster areas 6
within 1 year before the Department receives an application for financial assistance under 7
this subtitle; [and] 8
(vii) feasibility studies; AND 9
(VIII) HIGH IMPACT DEVELOPM ENT PROJECTS . 10
(2) The requirements specifically imposed on significant strategic economic 11
development opportunities and local economic development opportunities under this 12
subtitle do not apply to the items listed in paragraph (1) of this subsection. 13
5–323. 14
[Financial] EXCEPT AS PROVIDED IN § 5–354 OF THIS SUBTITLE , FINANCIAL 15
assistance from the Fund may not exceed the lesser of: 16
(1) $10,000,000; or 17
(2) 20% of the Fund balance. 18
5–324. 19
(a) (1) THIS SECTION DOES NOT APPLY TO A HIGH IMPA CT 20
DEVELOPMENT PROJEC T. 21
(2) Each subsection of this section is subject to § 5–323 of this subtitle. 22
5–325. 23
(a) Subject to the restrictions of this subtitle, the Department or Authority may 24
impose the terms and conditions on financial assistance from the Fund as either considers 25
appropriate. 26
SENATE BILL 30 7
(b) (1) Except as provided in paragraph (2), (3), or (4) of this subsection, 1
financial assistance from the Fund may not exceed 70% of the total costs of the project being 2
financed. 3
(2) Financial assistance from the Fund may constitute 100% of the total 4
costs of the project being financed if: 5
(i) the recipient is the Corporation; or 6
(ii) the financial assistance is for: 7
1. an arts and entertainment enterprise; 8
2. an arts and entertainment project; [or] 9
3. a Tier I county project; OR 10
4. A HIGH IMPACT DEVELO PMENT PROJECT . 11
5–350. RESERVED. 12
5–351. RESERVED. 13
PART VIII. HIGH IMPACT DEVELOPMENT PROJECT PROGRAM. 14
5–352. 15
(A) THERE IS A HIGH IMPACT DEVELOPMENT PROJECT PROGRAM IN THE 16
DEPARTMENT . 17
(B) THE PURPOSE OF THE HIGH IMPACT DEVELOPMENT PROJECT 18
PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE TO INDUSTRIAL DEVELOPME NT 19
AGENCIES OR ENTERPRI SES UNDERTAKING HIGH IMPACT , PLACEMAKING 20
PROJECTS THAT WILL SUPPORT THE BUSINESS FORMATION , EXPANSION, OR 21
RETENTION OF MANUFACTURERS IN THE STATE. 22
5–353. 23
(A) TO CARRY OUT THE PURP OSE OF THE HIGH IMPACT DEVELOPMENT 24
PROJECT PROGRAM, THE DEPARTMENT SHALL AWARD FINANCIAL ASSI STANCE IN 25
ACCORDANCE WITH THIS PART TO APPROVED RECIPIEN TS CARRYING OUT HIGH 26
IMPACT DEVELOPMENT PROJECTS INTENDED TO SUPPORT BUSINESS FORMATION , 27
EXPANSION, OR RETENTION OF MANUFACTURERS IN THE STATE. 28
8 SENATE BILL 30
(B) (1) IN ORDER TO OBTAIN FINANCIAL ASSISTANCE THROUGH THE 1
PROGRAM, THE INDUSTRIAL DEVEL OPMENT AGENCY OR ENT ERPRISE 2
UNDERTAKING THE HIGH IMPACT DEVELOPMENT P ROJECT SHALL SUBMIT TO THE 3
DEPARTMENT AN APPLICATION IN TH E FORM THAT THE DEPARTMENT SPECIFIES. 4
(2) THE APPLICATION REQUI RED UNDER PARAGRAPH (1) OF THIS 5
SUBSECTION SHALL INCLUDE A SIGNED, WRITTEN REFERRAL TO THE PROGRAM BY 6
THE GOVERNOR. 7
(C) THE DEPARTMENT SHALL EVALUATE A REQUEST FOR FINANCIAL 8
ASSISTANCE UNDER THE HIGH IMPACT DEVELOPMENT PROJECT PROGRAM, 9
DETERMINE WHETHER TO APPROVE THE REQUEST , DETERMINE THE AMOUNT OF 10
THE FINANCIAL ASSISTANCE , AND SET THE TERMS AN D CONDITIONS OF THE 11
FINANCIAL ASSISTANCE . 12
5–354. 13
(A) A SINGLE ENTITY MAY BE ISSUED NOT MORE THAN $50,000,000 IN 14
FINANCIAL ASSISTANCE UNDER THIS PART IN A FISCAL YEAR. 15
(B) SUBJECT TO THE AVAILABILITY O F MONEY WITHIN THE HIGH IMPACT 16
DEVELOPMENT PROJECT ACCOUNT ESTABLISHED U NDER § 5–313 OF THIS 17
SUBTITLE, THE DEPARTMENT MAY ISSUE FINANCIAL ASSISTANCE : 18
(1) NOT EXCEEDING $500,000,000 ANNUALLY, ON A ROLLING BASIS , 19
FOR BUSINESS FORMATI ON OR EXPANSION IN T HE STATE; OR 20
(2) NOT EXCEEDING $100,000,000 ANNUALLY, ON A ROLLING BASIS , 21
FOR THE RETENTION OF BUSINESSES IN THE STATE. 22
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
1, 2024. It shall remain effective for a period of 20 years and, at the end of June 30, 2044, 24
this Act, with no further action required by the General Assembly, shall be abrogated and 25
of no further force and effect. 26