MD
Maryland Senate Bill SB30

Maryland 2024 Regular Session

Maryland Senate Bill SB30 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11
22
33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *sb0030*
66
77 SENATE BILL 30
88 C8 4lr1106
99 (PRE–FILED)
1010 By: Senator Ellis
1111 Requested: October 23, 2023
1212 Introduced and read first time: January 10, 2024
1313 Assigned to: Finance
1414
1515 A BILL ENTITLED
1616
1717 AN ACT concerning 1
1818
1919 Maryland Economic Development Assistan ce Authority and Fund – High Impact 2
2020 Development Project Program 3
2121
2222 FOR the purpose of establishing the High Impact Development Project Program within the 4
2323 Department of Commerce to provide certain financial assistance to certain industrial 5
2424 development agencies or enterprises undertaking high impact, placemaking projects 6
2525 that will support certain manufacturing activities; requiring the Department to 7
2626 award financial assistance to certain entities carrying out high impact development 8
2727 projects under certain circumstances and subject to certain limitations; establishing 9
2828 a High Impact Development Project Account within the Maryland Economic 10
2929 Development Assistance Fund; and generally relating to the Maryland Economic 11
3030 Development Assistance Authority and Fund and the High Impact Development 12
3131 Project Program. 13
3232
3333 BY renumbering 14
3434 Article – Economic Development 15
3535 Section 5–301(o) through (w) 16
3636 to be Section 5–301(q) through (y), respectively 17
3737 Annotated Code of Maryland 18
3838 (2018 Replacement Volume and 2023 Supplement) 19
3939
4040 BY repealing and reenacting, without amendments, 20
4141 Article – Economic Development 21
4242 Section 5–301(a), (g), and (l) through (n), 5–319(a)(2), 5–320(a) and (c), and 5–325(a) 22
4343 and (b)(1) 23
4444 Annotated Code of Maryland 24
4545 (2018 Replacement Volume and 2023 Supplement) 25
4646
4747 BY adding to 26
4848 Article – Economic Development 27 2 SENATE BILL 30
4949
5050
5151 Section 5–301(o) and (p); and 5–352 through 5–354 to be under the new part “Part 1
5252 VIII. High Impact Development Project Program” 2
5353 Annotated Code of Maryland 3
5454 (2018 Replacement Volume and 2023 Supplement) 4
5555
5656 BY repealing and reenacting, with amendments, 5
5757 Article – Economic Development 6
5858 Section 5–311, 5–313, 5–321(b), 5–323, 5–324(a), and 5–325(b)(2) 7
5959 Annotated Code of Maryland 8
6060 (2018 Replacement Volume and 2023 Supplement) 9
6161
6262 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
6363 That Section(s) 5–301(o) through (w) of Article – Economic Development of the Annotated 11
6464 Code of Maryland be renumbered to be Section(s) 5–301(q) through (y), respectively. 12
6565
6666 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 13
6767 as follows: 14
6868
6969 Article – Economic Development 15
7070
7171 5–301. 16
7272
7373 (a) In this subtitle the following words have the meanings indicated. 17
7474
7575 (g) “Authority” means the Maryland Economic Development Assistance 18
7676 Authority. 19
7777
7878 (l) “Corporation” means the Maryland Economic Development Corporation. 20
7979
8080 (m) “Financial assistance” means a grant, loan, or investment provided under this 21
8181 subtitle. 22
8282
8383 (n) “Fund” means the Maryland Economic Development Assistance Fund. 23
8484
8585 (O) “HIGH IMPACT DEVELOPME NT PROJECT” MEANS A MANUFACTURING 24
8686 PROJECT IN WHICH AN INDUSTRIAL DEVELOPME NT AGENCY OR ENTERPR ISE 25
8787 UNDERTAKING THE PROJ ECT WILL PRIVATELY I NVEST AN AMOUNT OF A T LEAST 26
8888 $50,000,000. 27
8989
9090 (P) “INDUSTRIAL DEVELOPMEN T AGENCY” MEANS ANY INCORPORAT ED 28
9191 ORGANIZATION , FOUNDATION , ASSOCIATION, OR AGENCY: 29
9292
9393 (1) THAT HAS AS ITS PRIM ARY FUNCTION THE PRO MOTION, 30
9494 ENCOURAGEMENT , AND DEVELOPMENT OF I NDUSTRIAL, COMMERCIAL , 31
9595 MANUFACTURING , AND TOURIST ENTERPRI SES OR PROJECTS IN T HE STATE; AND 32
9696 SENATE BILL 30 3
9797
9898
9999 (2) TO WHOSE MEMBERS OR SHAREHOLDERS NO PROF IT INURES. 1
100100
101101 5–311. 2
102102
103103 The purposes of the Fund are to: 3
104104
105105 (1) expand employment opportunities in the State by providing financial 4
106106 assistance to businesses that are engaged in eligible industry sectors, including financial 5
107107 assistance for: 6
108108
109109 (i) aquaculture projects; 7
110110
111111 (ii) arts and entertainment enterprises; 8
112112
113113 (iii) arts and entertainment projects; and 9
114114
115115 (iv) creation and expansion of child care facilities; 10
116116
117117 (2) provide financial assistance for the redevelopment of qualified 11
118118 brownfields sites; 12
119119
120120 (3) provide financial assistance to local governments and the Corporation 13
121121 for economic development projects; [and] 14
122122
123123 (4) provide grants to local economic development funds; AND 15
124124
125125 (5) PROVIDE FINANCIAL ASSISTANCE FOR HIGH IMPACT 16
126126 DEVELOPMENT PROJECTS . 17
127127
128128 5–313. 18
129129
130130 (A) The Fund consists of: 19
131131
132132 (1) money appropriated in the State budget to the Fund; 20
133133
134134 (2) money made available to the Fund through federal programs or private 21
135135 contributions; 22
136136
137137 (3) repayments of principal and interest from loans made from the Fund; 23
138138
139139 (4) proceeds from the sale, disposition, lease, or rental of collateral related 24
140140 to financial assistance provided by the Department under this subtitle; 25
141141
142142 (5) application or other fees paid to the Fund to process requests for 26
143143 financial assistance; 27
144144 4 SENATE BILL 30
145145
146146
147147 (6) recovery of an investment made by the Department in a business, 1
148148 including an arrangement under which part of the investment is recovered through: 2
149149
150150 (i) a requirement that the Department receive a proportion of cash 3
151151 flow, commissions, royalties, or license fees; 4
152152
153153 (ii) the repurchase from the Department of any of its investment 5
154154 interest; or 6
155155
156156 (iii) the sale of an appreciated asset; 7
157157
158158 (7) repayments received from recipients of conditional grants from the 8
159159 Department; 9
160160
161161 (8) money collected under § 9–229 of the Tax – Property Article; 10
162162
163163 (9) repayments on or recoveries from financial assistance provided from 11
164164 the former: 12
165165
166166 (i) Brownfields Revitalization Incentive Fund; 13
167167
168168 (ii) Child Care Facilities Direct Loan Fund; 14
169169
170170 (iii) Child Care Special Loan Fund; 15
171171
172172 (iv) Maryland Industrial and Commercial Redevelopment Fund; 16
173173
174174 (v) Maryland Industrial Land Fund; 17
175175
176176 (vi) Maryland Seafood and Aquaculture Loan Fund; and 18
177177
178178 (vii) Smart Growth Economic Development Infrastructure Fund; 19
179179 [and] 20
180180
181181 (10) MONEY IN THE HIGH IMPACT DEVELOPMENT PROJECT ACCOUNT 21
182182 ESTABLISHED UNDER SU BSECTION (B) OF THIS SECTION; AND 22
183183
184184 (11) any other money made available to the Fund. 23
185185
186186 (B) (1) WITHIN THE FUND IS A HIGH IMPACT DEVELOPMENT PROJECT 24
187187 ACCOUNT. 25
188188
189189 (2) THE ACCOUNT CONSISTS OF REPAYMENTS ON OR REC OVERIES 26
190190 FROM FINANCIAL ASSIS TANCE PROVIDED FOR H IGH IMPACT DEVELOPME NT 27
191191 PROJECTS UNDER PART VIII OF THIS SUBTITLE. 28
192192 SENATE BILL 30 5
193193
194194
195195 (3) FOR FISCAL YEAR 2026, THE GOVERNOR SHALL INCLUDE IN THE 1
196196 ANNUAL BUDGET BILL A N APPROPRIATION OF $600,000,000 TO THE FUND TO BE 2
197197 USED FOR FINANCIAL A SSISTANCE UNDER THE HIGH IMPACT DEVELOPMENT 3
198198 PROJECT ACCOUNT. 4
199199
200200 5–319. 5
201201
202202 (a) (2) Except as provided in paragraph (3) of this subsection, financial 6
203203 assistance from the Fund exceeding $2,500,000 requires approval by the Authority. 7
204204
205205 5–320. 8
206206
207207 (a) To be eligible for financial assistance from the Fund, an applicant shall be: 9
208208
209209 (1) a local economic development fund that meets the criteria set forth in 10
210210 Part V of this subtitle; or 11
211211
212212 (2) an individual, private business, nonprofit entity, or local government, 12
213213 or the Corporation that intends to use the requested financial assistance for a project that: 13
214214
215215 (i) except as provided in subsection (b) of this section, is in an 14
216216 eligible industry sector under § 5–321 of this subtitle; and 15
217217
218218 (ii) has a strong potential for expanding or retaining employment 16
219219 opportunities in the State. 17
220220
221221 (c) In form and content acceptable to the Department, an applicant for financial 18
222222 assistance from the Fund shall submit to the Department an application that contains: 19
223223
224224 (1) the information that the Department or Authority considers necessary 20
225225 to evaluate the request for financial assistance; and 21
226226
227227 (2) for a Tier I county project: 22
228228
229229 (i) a marketing plan designed to market the project to prospective 23
230230 businesses; 24
231231
232232 (ii) a statement of planned marketing expenditures as a percent of 25
233233 the total financial assistance amount requested; and 26
234234
235235 (iii) a plan for the project that is consistent with the county’s local 27
236236 strategic economic development plan as to the location and type of project. 28
237237
238238 5–321. 29
239239
240240 (b) (1) For the purpose of providing financial assistance under this subtitle, 30
241241 the following are deemed to be in eligible industry sectors: 31 6 SENATE BILL 30
242242
243243
244244
245245 (i) aquaculture projects; 1
246246
247247 (ii) arts and entertainment enterprises; 2
248248
249249 (iii) arts and entertainment projects; 3
250250
251251 (iv) redevelopment of qualified brownfields sites; 4
252252
253253 (v) creation or expansion of child care facilities; 5
254254
255255 (vi) projects in areas that are declared to be federal disaster areas 6
256256 within 1 year before the Department receives an application for financial assistance under 7
257257 this subtitle; [and] 8
258258
259259 (vii) feasibility studies; AND 9
260260
261261 (VIII) HIGH IMPACT DEVELOPM ENT PROJECTS . 10
262262
263263 (2) The requirements specifically imposed on significant strategic economic 11
264264 development opportunities and local economic development opportunities under this 12
265265 subtitle do not apply to the items listed in paragraph (1) of this subsection. 13
266266
267267 5–323. 14
268268
269269 [Financial] EXCEPT AS PROVIDED IN § 5–354 OF THIS SUBTITLE , FINANCIAL 15
270270 assistance from the Fund may not exceed the lesser of: 16
271271
272272 (1) $10,000,000; or 17
273273
274274 (2) 20% of the Fund balance. 18
275275
276276 5–324. 19
277277
278278 (a) (1) THIS SECTION DOES NOT APPLY TO A HIGH IMPA CT 20
279279 DEVELOPMENT PROJEC T. 21
280280
281281 (2) Each subsection of this section is subject to § 5–323 of this subtitle. 22
282282
283283 5–325. 23
284284
285285 (a) Subject to the restrictions of this subtitle, the Department or Authority may 24
286286 impose the terms and conditions on financial assistance from the Fund as either considers 25
287287 appropriate. 26
288288 SENATE BILL 30 7
289289
290290
291291 (b) (1) Except as provided in paragraph (2), (3), or (4) of this subsection, 1
292292 financial assistance from the Fund may not exceed 70% of the total costs of the project being 2
293293 financed. 3
294294
295295 (2) Financial assistance from the Fund may constitute 100% of the total 4
296296 costs of the project being financed if: 5
297297
298298 (i) the recipient is the Corporation; or 6
299299
300300 (ii) the financial assistance is for: 7
301301
302302 1. an arts and entertainment enterprise; 8
303303
304304 2. an arts and entertainment project; [or] 9
305305
306306 3. a Tier I county project; OR 10
307307
308308 4. A HIGH IMPACT DEVELO PMENT PROJECT . 11
309309
310310 5–350. RESERVED. 12
311311
312312 5–351. RESERVED. 13
313313
314314 PART VIII. HIGH IMPACT DEVELOPMENT PROJECT PROGRAM. 14
315315
316316 5–352. 15
317317
318318 (A) THERE IS A HIGH IMPACT DEVELOPMENT PROJECT PROGRAM IN THE 16
319319 DEPARTMENT . 17
320320
321321 (B) THE PURPOSE OF THE HIGH IMPACT DEVELOPMENT PROJECT 18
322322 PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE TO INDUSTRIAL DEVELOPME NT 19
323323 AGENCIES OR ENTERPRI SES UNDERTAKING HIGH IMPACT , PLACEMAKING 20
324324 PROJECTS THAT WILL SUPPORT THE BUSINESS FORMATION , EXPANSION, OR 21
325325 RETENTION OF MANUFACTURERS IN THE STATE. 22
326326
327327 5–353. 23
328328
329329 (A) TO CARRY OUT THE PURP OSE OF THE HIGH IMPACT DEVELOPMENT 24
330330 PROJECT PROGRAM, THE DEPARTMENT SHALL AWARD FINANCIAL ASSI STANCE IN 25
331331 ACCORDANCE WITH THIS PART TO APPROVED RECIPIEN TS CARRYING OUT HIGH 26
332332 IMPACT DEVELOPMENT PROJECTS INTENDED TO SUPPORT BUSINESS FORMATION , 27
333333 EXPANSION, OR RETENTION OF MANUFACTURERS IN THE STATE. 28
334334 8 SENATE BILL 30
335335
336336
337337 (B) (1) IN ORDER TO OBTAIN FINANCIAL ASSISTANCE THROUGH THE 1
338338 PROGRAM, THE INDUSTRIAL DEVEL OPMENT AGENCY OR ENT ERPRISE 2
339339 UNDERTAKING THE HIGH IMPACT DEVELOPMENT P ROJECT SHALL SUBMIT TO THE 3
340340 DEPARTMENT AN APPLICATION IN TH E FORM THAT THE DEPARTMENT SPECIFIES. 4
341341
342342 (2) THE APPLICATION REQUI RED UNDER PARAGRAPH (1) OF THIS 5
343343 SUBSECTION SHALL INCLUDE A SIGNED, WRITTEN REFERRAL TO THE PROGRAM BY 6
344344 THE GOVERNOR. 7
345345
346346 (C) THE DEPARTMENT SHALL EVALUATE A REQUEST FOR FINANCIAL 8
347347 ASSISTANCE UNDER THE HIGH IMPACT DEVELOPMENT PROJECT PROGRAM, 9
348348 DETERMINE WHETHER TO APPROVE THE REQUEST , DETERMINE THE AMOUNT OF 10
349349 THE FINANCIAL ASSISTANCE , AND SET THE TERMS AN D CONDITIONS OF THE 11
350350 FINANCIAL ASSISTANCE . 12
351351
352352 5–354. 13
353353
354354 (A) A SINGLE ENTITY MAY BE ISSUED NOT MORE THAN $50,000,000 IN 14
355355 FINANCIAL ASSISTANCE UNDER THIS PART IN A FISCAL YEAR. 15
356356
357357 (B) SUBJECT TO THE AVAILABILITY O F MONEY WITHIN THE HIGH IMPACT 16
358358 DEVELOPMENT PROJECT ACCOUNT ESTABLISHED U NDER § 5–313 OF THIS 17
359359 SUBTITLE, THE DEPARTMENT MAY ISSUE FINANCIAL ASSISTANCE : 18
360360
361361 (1) NOT EXCEEDING $500,000,000 ANNUALLY, ON A ROLLING BASIS , 19
362362 FOR BUSINESS FORMATI ON OR EXPANSION IN T HE STATE; OR 20
363363
364364 (2) NOT EXCEEDING $100,000,000 ANNUALLY, ON A ROLLING BASIS , 21
365365 FOR THE RETENTION OF BUSINESSES IN THE STATE. 22
366366
367367 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
368368 1, 2024. It shall remain effective for a period of 20 years and, at the end of June 30, 2044, 24
369369 this Act, with no further action required by the General Assembly, shall be abrogated and 25
370370 of no further force and effect. 26