EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0352*
HOUSE BILL 352
B1 5lr0448
CF SB 321
By: The Speaker (By Request – Administration)
Introduced and read first time: January 15, 2025
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Budget Reconciliation and Financing Act of 2025 2
FOR the purpose of requiring the Maryland Horse Industry Board to take certain actions 3
relating to licensees of horse establishments; establishing or altering certain 4
administrative penalties; altering or repealing certain required appropriations; 5
establishing or altering certain fees; requiring the Secretary of Agriculture to take 6
certain actions relating to a registration for a weight and measure, including setting 7
reasonable fees; authorizing the use of certain funds for certain purposes; altering 8
the composition of certain funds; establishing certain funds; authorizing, requiring, 9
or altering the distribution of certain revenue; requiring county governments, 10
beginning in a certain fiscal year, to pay certain amounts toward the retirement costs 11
for certain local employees; increasing the outstanding and unpaid principal balance 12
of bonds issued by the Maryland Department of Transportation; expanding the uses 13
of certain bond proceeds; altering the value of certain vehicle trade–in allowances; 14
altering a certain limitation on the amount of the Maryland estate tax for decedents 15
dying on or after a certain date; limiting the amount of tax credits the Maryland 16
Higher Education Commission may approve for a certain fiscal year; requiring the 17
reversion of certain funds to the General Fund of the State; increasing the percentage 18
of certain costs for which each county and Baltimore City are responsible for 19
reimbursing the State; prohibiting the award of a certain tax credit to certain new 20
properties on or after a certain date; altering the Maryland earned income tax credit 21
for certain individuals; altering the rates and rate brackets under the State income 22
tax on certain income of individuals; providing for an additional State individual 23
income tax rate on the net capital gains of individuals; authorizing the transfer of 24
certain funds; requiring that certain sales of tangible personal property be included 25
in the numerator of the sales factor used for apportioning a corporation’s income to 26
the State under certain circumstances; imposing a certain income tax on income 27
distributed to certain members of certain pass–through entities from the 28
pass–through entity’s taxable income exceeding a certain amount; requiring certain 29
corporations to compute Maryland taxable income using a certain method; requiring, 30
subject to regulations adopted by the Comptroller, certain groups of corporations to 31 2 HOUSE BILL 352
file a combined income tax return reflecting the aggregate income tax liability of all 1
the members of the group; requiring the Comptroller to adopt certain regulations 2
consistent with certain regulations adopted by the Multistate Tax Commission; 3
requiring the Comptroller to assess interest and penalties under certain 4
circumstances; reducing the Medicaid Deficit Assessment for a certain fiscal year; 5
repealing certain requirements for the Maryland Department of Health to apply to 6
a certain federal agency for certain grant funds and inclusion in a certain program; 7
repealing certain required appropriations to the Maryland Public Broadcasting 8
Commission; repealing the Low Intensity Support Services Program; repealing the 9
teacher retirement supplemental grants program; repealing certain provisions of law 10
relating to inheritance tax revenue distribution; repealing a certain credit against 11
the State income tax for certain business entities located in enterprise zones; and 12
generally relating to the financing of State and local government. 13
BY repealing and reenacting, without amendments, 14
Article – Agriculture 15
Section 2–701(a) and (b), 2–710, 8–801.1(b), and 10–407(a)(1) and (c) 16
Annotated Code of Maryland 17
(2016 Replacement Volume and 2024 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Agriculture 20
Section 2–712, 5–503, 5–506, 8–706, 8–801.1(c), 9–204, 10–407(d), 11–204.4, and 21
11–204.7 22
Annotated Code of Maryland 23
(2016 Replacement Volume and 2024 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Alcoholic Beverages and Cannabis 26
Section 1–323(a)(1) and (4) and 36–206(a) and (b) 27
Annotated Code of Maryland 28
(2024 Replacement Volume) 29
BY repealing and reenacting, with amendments, 30
Article – Alcoholic Beverages and Cannabis 31
Section 1–323(f) and 36–206(c) and (g) 32
Annotated Code of Maryland 33
(2024 Replacement Volume) 34
BY repealing and reenacting, without amendments, 35
Article – Commercial Law 36
Section 14–4101 37
Annotated Code of Maryland 38
(2013 Replacement Volume and 2024 Supplement) 39
BY repealing and reenacting, with amendments, 40
Article – Commercial Law 41 HOUSE BILL 352 3
Section 14–4104 1
Annotated Code of Maryland 2
(2013 Replacement Volume and 2024 Supplement) 3
BY repealing and reenacting, without amendments, 4
Article – Corporations and Associations 5
Section 11–208(a) and (b) 6
Annotated Code of Maryland 7
(2014 Replacement Volume and 2024 Supplement) 8
BY repealing and reenacting, with amendments, 9
Article – Corporations and Associations 10
Section 11–208(g) 11
Annotated Code of Maryland 12
(2014 Replacement Volume and 2024 Supplement) 13
BY repealing and reenacting, without amendments, 14
Article – Criminal Procedure 15
Section 11–934(b) and (c)(1) and (2) 16
Annotated Code of Maryland 17
(2018 Replacement Volume and 2024 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Criminal Procedure 20
Section 11–934(f)(2) 21
Annotated Code of Maryland 22
(2018 Replacement Volume and 2024 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Economic Development 25
Section 10–501(a) and (f), 10–526(a)(1) and (4) and (b), 13–601(a) and (c), and 26
13–611(a) and (b)(1) 27
Annotated Code of Maryland 28
(2024 Replacement Volume and 2024 Supplement) 29
BY repealing and reenacting, with amendments, 30
Article – Economic Development 31
Section 10–526(g)(1) and 13–611(b)(3) 32
Annotated Code of Maryland 33
(2024 Replacement Volume and 2024 Supplement) 34
BY repealing and reenacting, without amendments, 35
Article – Education 36
Section 7–414.1(a), (b), and (f)(1) and (5), 7–447.1(p)(1) and (3), 7–810(a), (b), and 37
(f)(1) and (5), 7–1501(a) and (f), 7–1508(e)(2), 16–512(a) and (c), 18–3701(a) 38
and (f), and 18–3802(a) and (b) 39
Annotated Code of Maryland 40 4 HOUSE BILL 352
(2022 Replacement Volume and 2024 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Education 3
Section 7–414.1(f)(4), 7–447.1(p)(9), 7–810(f)(4), 7–1508(g), 8–415(d), 14–405(b), 4
16–512(b), 18–3704, and 18–3806 5
Annotated Code of Maryland 6
(2022 Replacement Volume and 2024 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – Environment 9
Section 4–104, 5–203.1(b)(1), (3), (4), (6), and (8), (c)(5), and (d), 6–843, and 7–506(a)10
Annotated Code of Maryland 11
(2013 Replacement Volume and 2024 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – Environment 14
Section 5–203.1(a)(1), (6), (8), (9), and (10), (c)(1), and (e) and 7–503(a) 15
Annotated Code of Maryland 16
(2013 Replacement Volume and 2024 Supplement) 17
BY repealing 18
Article – Environment 19
Section 5–203.1(b)(7) 20
Annotated Code of Maryland 21
(2013 Replacement Volume and 2024 Supplement) 22
BY adding to 23
Article – Environment 24
Section 5–203.1(a)(12) 25
Annotated Code of Maryland 26
(2013 Replacement Volume and 2024 Supplement) 27
BY repealing and reenacting, without amendments, 28
Article – Environment 29
Section 15–807(a) and (d), and 15–808(a), (c), (g), (h), (i), and (k) 30
Annotated Code of Maryland 31
(2014 Replacement Volume and 2024 Supplement) 32
BY repealing and reenacting, with amendments, 33
Article – Environment 34
Section 15–807(b), (c), and (f), 15–808(f), 15–815, 15–816, and 15–819 35
Annotated Code of Maryland 36
(2014 Replacement Volume and 2024 Supplement) 37
BY repealing and reenacting, without amendments, 38
Article – Financial Institutions 39 HOUSE BILL 352 5
Section 13–1114(a) 1
Annotated Code of Maryland 2
(2020 Replacement Volume and 2024 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – Financial Institutions 5
Section 13–1114(g) 6
Annotated Code of Maryland 7
(2020 Replacement Volume and 2024 Supplement) 8
BY repealing and reenacting, without amendments, 9
Article – Health – General 10
Section 7–101(a), (b), and (l), 7–205(a)(1) and (b), and 19–112(a) and (d) 11
Annotated Code of Maryland 12
(2023 Replacement Volume and 2024 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Health – General 15
Section 7–205(e), 7–409(c), 13–1116(a), and 19–112(e)(1) 16
Annotated Code of Maryland 17
(2023 Replacement Volume and 2024 Supplement) 18
BY adding to 19
Article – Health – General 20
Section 15–157 21
Annotated Code of Maryland 22
(2023 Replacement Volume and 2024 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Housing and Community Development 25
Section 4–511(a), (b), and (c) 26
Annotated Code of Maryland 27
(2019 Replacement Volume and 2024 Supplement) 28
BY repealing and reenacting, with amendments, 29
Article – Housing and Community Development 30
Section 4–511(j) 31
Annotated Code of Maryland 32
(2019 Replacement Volume and 2024 Supplement) 33
BY repealing and reenacting, with amendments, 34
Article – Human Services 35
Section 10–1303 36
Annotated Code of Maryland 37
(2019 Replacement Volume and 2024 Supplement) 38
BY repealing and reenacting, with amendments, 39 6 HOUSE BILL 352
Article – Labor and Employment 1
Section 8–421, 8–609(b), 8–612(a), 8–613(b), (d), (f), and (g), 11–606(f), 11–1302(e), 2
and 11–1506 3
Annotated Code of Maryland 4
(2016 Replacement Volume and 2024 Supplement) 5
BY adding to 6
Article – Labor and Employment 7
Section 8–605.1 8
Annotated Code of Maryland 9
(2016 Replacement Volume and 2024 Supplement) 10
BY repealing and reenacting, without amendments, 11
Article – Labor and Employment 12
Section 8–609(a)(1) and (3), 8–613(a)(1), (3), and (4), 11–606(b) and (c), 11–1302(a) 13
and (f), and 11–1501(a) and (f) 14
Annotated Code of Maryland 15
(2016 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Local Government 18
Section 16–503 19
Annotated Code of Maryland 20
(2013 Volume and 2024 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – Natural Resources 23
Section 3–103(a)(1), 5–2001(a), (b), and (c), 8–2A–02(a) and (b), and 8–709(a) and (b) 24
Annotated Code of Maryland 25
(2023 Replacement Volume and 2024 Supplement) 26
BY repealing and reenacting, with amendments, 27
Article – Natural Resources 28
Section 3–103(h), 5–2001(k), 8–2A–02(f), and 8–709(c) 29
Annotated Code of Maryland 30
(2023 Replacement Volume and 2024 Supplement) 31
BY repealing and reenacting, without amendments, 32
Article – Public Safety 33
Section 4–1011(a) and (c) 34
Annotated Code of Maryland 35
(2022 Replacement Volume and 2024 Supplement) 36
BY repealing and reenacting, with amendments, 37
Article – Public Safety 38
Section 4–1011(b) 39
Annotated Code of Maryland 40 HOUSE BILL 352 7
(2022 Replacement Volume and 2024 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Real Property 3
Section 8–1006 4
Annotated Code of Maryland 5
(2023 Replacement Volume and 2024 Supplement) 6
BY repealing and reenacting, without amendments, 7
Article – State Finance and Procurement 8
Section 3.5–309(a), (b), (j), and (k) and 7–311(a), (b), and (f) 9
Annotated Code of Maryland 10
(2021 Replacement Volume and 2024 Supplement) 11
BY repealing 12
Article – State Finance and Procurement 13
Section 3.5–309(l) 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2024 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – State Finance and Procurement 18
Section 3.5–309(m), (n), (o), and (p), 6–104(e), 7–114.2, 7–311(e) and (j), and 7–325 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2024 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – State Government 23
Section 9–1A–27(d), 9–1E–12(b), 9–20B–05(e) and (f), 9–3209(b), 21–205(c), and 24
21–206(f) 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2024 Supplement) 27
BY repealing and reenacting, without amendments, 28
Article – State Government 29
Section 9–20B–05(a) and (j), 9–3209(a), 21–205(a), and 21–206(a) 30
Annotated Code of Maryland 31
(2021 Replacement Volume and 2024 Supplement) 32
BY repealing and reenacting, without amendments, 33
Article – State Personnel and Pensions 34
Section 21–304(a) and (b)(1) and (4)(i) and (iii) 35
Annotated Code of Maryland 36
(2024 Replacement Volume and 2024 Supplement) 37
BY repealing and reenacting, with amendments, 38
Article – State Personnel and Pensions 39 8 HOUSE BILL 352
Section 21–304(b)(5) and 21–308(a) 1
Annotated Code of Maryland 2
(2024 Replacement Volume and 2024 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – Tax – General 5
Section 2–202(a), 2–606(h) and (i), 2–1302.2, 7–309(b), 10–105(a) and (b), 10–217, 6
10–219, 10–220, 10–740(c) and (g), 10–741(d), 10–751, 10–811, and 11–104(k) 7
Annotated Code of Maryland 8
(2022 Replacement Volume and 2024 Supplement) 9
BY repealing and reenacting, without amendments, 10
Article – Tax – General 11
Section 2–606(a) and (b), 7–309(a), and 10–740(a), (b), and (i) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2024 Supplement) 14
BY adding to 15
Article – Tax – General 16
Section 2–606(h) and (k) and 10–402.1 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2024 Supplement) 19
BY repealing 20
Article – Tax – General 21
Section 2–701 and 2–702 and the subtitle “Subtitle 7. Inheritance Tax Revenue 22
Distribution”; 7–201 through 7–234 and the subtitle “Subtitle 2. Inheritance 23
Tax”; and 10–218 and 10–702 24
Annotated Code of Maryland 25
(2022 Replacement Volume and 2024 Supplement) 26
BY repealing and reenacting, with amendments, 27
Article – Transportation 28
Section 2–103.1(m)(2)(iii), 3–202, 3–601(d), 7–406(c), 12–120, 13–809(a), 13–901, 29
13–912, 13–916, 13–917, 13–937, 13–955(e), 17–106(e)(2), and 23–205 30
Annotated Code of Maryland 31
(2020 Replacement Volume and 2024 Supplement) 32
BY repealing and reenacting, without amendments, 33
Article – Transportation 34
Section 13–809(b)(1) and (d), 13–955(a), and 17–106(a), (b), (c), (d), and (e)(1) 35
Annotated Code of Maryland 36
(2020 Replacement Volume and 2024 Supplement) 37
BY adding to 38
Article – Transportation 39 HOUSE BILL 352 9
Section 13–955(f); and 18.8–101 through 18.8–106 to be under the new title “Title 1
18.8. Retail Delivery Fee” 2
Annotated Code of Maryland 3
(2020 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – Tax – Property 6
Section 2–106 and 9–103(e) and (f) 7
Annotated Code of Maryland 8
(2019 Replacement Volume and 2024 Supplement) 9
BY repealing and reenacting, without amendments, 10
Article – Tax – Property 11
Section 9–103(a) 12
Annotated Code of Maryland 13
(2019 Replacement Volume and 2024 Supplement) 14
BY repealing 15
Article – Education 16
Section 24–204(d) 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2024 Supplement) 19
BY repealing 20
Article – Health – General 21
Section 7–717 22
Annotated Code of Maryland 23
(2023 Replacement Volume and 2024 Supplement) 24
BY repealing 25
Article – Local Government 26
Section 16–503 27
Annotated Code of Maryland 28
(2013 Volume and 2024 Supplement) 29
BY repealing and reenacting, with amendments, 30
Chapter 397 of the Acts of the General Assembly of 2011, as amended by Chapter 31
425 of the Acts of the General Assembly of 2013, Chapter 464 of the Acts of 32
the General Assembly of 2014, Chapter 489 of the Acts of the General 33
Assembly of 2015, Chapter 23 of the Acts of the General Assembly of 2017, 34
Chapter 10 of the Acts of the General Assembly of 2018, Chapter 16 of the 35
Acts of the General Assembly of 2019, Chapter 538 of the Acts of the General 36
Assembly of 2020, and Chapter 103 of the Acts of the General Assembly of 37
2023 38
Section 16(c) 39
BY repealing and reenacting, with amendments, 40 10 HOUSE BILL 352
Chapter 260 of the Acts of the General Assembly of 2023 1
Section 2 2
BY repealing and reenacting, with amendments, 3
Chapter 261 of the Acts of the General Assembly of 2023 4
Section 2 5
BY repealing 6
Chapter 275 of the Acts of the General Assembly of 2023 7
Section 1 and 2 8
BY repealing 9
Chapter 717 of the Acts of the General Assembly of 2024 10
Section 8(42) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Agriculture 14
2–701. 15
(a) In this subtitle the following words have the meanings indicated. 16
(b) “Board” means the Maryland Horse Industry Board. 17
2–710. 18
A person may not engage in the business of operating or maintaining any horse 19
establishment unless the person has received a license issued by the Board. 20
2–712. 21
(a) A license expires on [the] June 30 after its effective date, unless the license is 22
renewed for a 1–year term as provided in this section. 23
(B) AT LEAST 1 MONTH BEFORE A LICEN SE EXPIRES, THE BOARD SHALL 24
SEND EACH LICENSEE , BY ELECTRONIC MEANS OR FIRST–CLASS MAIL TO THE LA ST 25
KNOWN ELECTRONIC OR MAILIN G ADDRESS OF THE LIC ENSEE, A RENEWAL FORM 26
AND A RENEWAL NOTICE THAT STATES: 27
(1) THE DATE ON WHICH THE CURRENT LICENSE EXPI RES; 28
(2) THAT THE RENEWAL APPL ICATION AND FEE MUST BE RECEIVED 29
BY THE BOARD ON OR BEFORE TH E LICENSE EXPIRATION DATE; AND 30
HOUSE BILL 352 11
(3) THE AMOUNT OF THE REN EWAL FEE. 1
[(b)] (C) Before [his] A PERSON’S license expires, a licensee periodically may 2
renew [his] THE license for additional 1–year terms, if the licensee: 3
(1) Otherwise is entitled to be licensed; 4
(2) Pays to the Board a renewal fee of $125; and 5
(3) Submits to the Board a renewal application on the form that it requires. 6
(D) A PERSON WHO IS LICENS ED TO OPERATE A HORS E ESTABLISHMENT 7
HAS A GRACE PERIOD O F 60 DAYS AFTER THE PERSO N’S LICENSE EXPIRES TO RENEW 8
THE LICENSE RETROACT IVELY, IF THE PERSON: 9
(1) OTHERWISE IS ENTITLED TO RENEW THE LICENSE; 10
(2) SUBMITS TO THE BOARD A RENEWAL APPLI CATION ON THE FORM 11
REQUIRED BY THE BOARD; AND 12
(3) PAYS TO THE BOARD THE RENEWAL FEE AND ANY LATE FEE SET 13
BY THE BOARD. 14
(E) THE BOARD MAY REINSTATE T HE LICENSE OF A FORM ER LICENSEE IF 15
THE FORMER LICENSEE : 16
(1) APPLIES FOR THE REINS TATEMENT MORE THAN 60 DAYS AFTER 17
THE LICENSE RENEWAL DEADLINE; 18
(2) OTHERWISE IS ENTITLED TO RENEW THE LICENSE ; 19
(3) SUBMITS TO THE BOARD AN APPLICATION FOR R EINSTATEMENT 20
ON THE FORM REQUIRED BY THE BOARD; AND 21
(4) PAYS TO THE BOARD A REINSTATEMENT FEE AND THE RENEWAL 22
FEE SET BY THE BOARD. 23
5–503. 24
(a) (1) A beekeeper shall register annually with the Department each colony 25
that [it] THE PERSON maintains, as provided in this subsection. 26
12 HOUSE BILL 352
(2) On or before January 1 of each year, the beekeeper shall complete and 1
submit to the Department a registration form on which the beekeeper shall state the 2
number of colonies [he] THE PERSON maintains and the location of each colony. 3
(3) The Department shall adopt a form which shall be used to comply with 4
the registration requirements of this subsection. 5
(b) Any person who is not registered as a beekeeper under this section and who 6
acquires a colony shall register [it] THE COLONY with the Department within 30 days after 7
the acquisition. 8
(C) A PERSON WHO FAILS TO COMPLETE AND SUBMIT THE REGISTRATION 9
IN A TIMELY MANNER A S SPECIFIED IN THIS SECTION IS SUBJECT T O: 10
(1) AFTER 30 DAYS FROM NOTIFICAT ION BY THE DEPARTMENT TO 11
SUBMIT A REGISTRATIO N, AN ADMINISTRATIVE PE NALTY OF $25; 12
(2) AFTER 60 DAYS FROM NOTIFICATI ON BY THE DEPARTMENT TO 13
SUBMIT A REGISTRATIO N, AN ADMINISTRATIVE PE NALTY OF $50; AND 14
(3) AFTER 90 DAYS FROM NOTIFICATI ON BY THE DEPARTMENT TO 15
SUBMIT A REGISTRATIO N, AN ADMINISTRATIVE PE NALTY OF $100. 16
5–506. 17
(A) In each colony that [it] A BEEKEEPER maintains, a beekeeper shall provide 18
movable frames, each of which may be removed from the colony without causing damage to 19
the combs in the colony. 20
(B) (1) AFTER BEING NOTIFIED BY THE DEPARTMENT TO PROVIDE 21
MOVABLE FRAMES FOR A COLONY, A BEEKEEPER SHALL PROVIDE THE FR AMES 22
WITHIN 30 DAYS FROM RECEIPT OF THE NOTICE. 23
(2) IF A BEEKEEPER FAILS TO PROVIDE THE FRAME S AS SPECIFIED IN 24
THIS SECTION, THE BEEKEEPER IS SUB JECT TO: 25
(I) AFTER 30 DAYS FROM RECEIPT OF THE DEPARTMENT ’S 26
NOTIFICATION, AN ADMINISTRATIVE PE NALTY OF $25; AND 27
(II) AFTER 60 DAYS FROM RECEIPT OF THE DEPARTMENT’S 28
NOTIFICATION, AN ADMINISTRATIVE PE NALTY OF $50. 29
8–706. 30
HOUSE BILL 352 13
(a) To maximize participation in the Conservation Reserve Enhancement 1
Program, in fiscal years 2023 through 2031, inclusive, a landowner who enrolls land 2
planted with a forested streamside buffer shall receive a one–time signing bonus of up to 3
$1,000 per acre of land enrolled. 4
(b) Signing bonuses provided under this section shall be funded with: 5
(1) Money appropriated under subsection (c) of this section; and 6
(2) The amount specified in § 9–1605.2(i)(11)(i) of the Environment Article. 7
(c) (1) For fiscal [years 2024 through 2031, in each year] YEAR 2024, the 8
Governor shall appropriate $2,500,000 in the annual State budget to fund tree planting 9
under this section and other tree planting programs on agricultural land. 10
(2) FOR EACH OF FISCAL YE ARS 2025 THROUGH 2031, THE 11
GOVERNOR SHALL APPROP RIATE $500,000 IN THE ANNUAL STATE BUDGET TO 12
FUND TREE PLANTING U NDER THIS SECTION AN D OTHER TREE PLANTIN G 13
PROGRAMS ON AGRICULT URAL LAND. 14
[(2)] (3) Money appropriated under this subsection is supplemental to 15
and may not take the place of funding that would otherwise be appropriated for tree 16
plantings under this section and other tree planting programs on agricultural land. 17
8–801.1. 18
(b) (1) Subject to paragraph (2) of this subsection, a summary of each nutrient 19
management plan shall be filed and updated with the Department at a time and in a form 20
that the Department requires by regulation. 21
(2) (i) The Department may require an updated summary under this 22
subsection to take the form of an annual implementation report. 23
(ii) If a person, in operating a farm, uses or produces animal manure, 24
the person’s annual implementation report shall include: 25
1. The amount of animal manure imported to or exported 26
from the person’s farm; 27
2. For any animal manure that was imported, the name and 28
location of the sending farm; and 29
3. For any animal manure that was exported, the name and 30
location of the farm, alternative use facility, or manure broker that received the manure. 31
14 HOUSE BILL 352
(iii) If a person receives animal manure through a manure broker, 1
the broker shall provide the person with the name and location of the sending farm. 2
(3) The Department shall maintain a copy of each summary for 3 years in 3
a manner that protects the identity of the individual for whom the nutrient management 4
plan was prepared. 5
(c) (1) If a person fails to file a summary or annual implementation report as 6
required by the Department under subsection (b) of this section, the Department shall 7
notify the person that: 8
(i) The person is in violation of the requirement to file a summary 9
or annual implementation report; and 10
(ii) The person is subject to[: 11
1. After], AFTER 30 days from issuance of the notice, an 12
administrative penalty of not less than [$100] $1,000 and not more than [$250; 13
2. After 60 days from issuance of the notice, an 14
administrative penalty of not less than $250 and not more than $1,000; and 15
3. After 90 days from issuance of the noti ce, an 16
administrative penalty of not less than $1,000] $2,000. 17
(2) A penalty imposed on a person under paragraph (1) of this subsection 18
shall be assessed with consideration given to: 19
(i) The willfulness of the violation; and 20
(ii) The extent to which the current violation is part of a recurrent 21
pattern of the same or similar type of violation committed by the violator. 22
9–204. 23
(a) No person may engage in the business of a wholesale seedsman in the State 24
unless [he] THE PERSON first obtains a permit. 25
(b) [He] THE PERSON shall apply to the Secretary on a form determined and 26
furnished by the Secretary. The application shall be verified by the oath of the applicant 27
or, if the applicant is a corporation, by the oath of some of its officers. 28
(c) Upon payment of a [$100] $125 permit fee, the Secretary shall issue to the 29
applicant a wholesale seedsman permit for an annual period beginning July 1 each year. 30
HOUSE BILL 352 15
(d) Out–of–state wholesale seedsmen doing business in the State shall obtain a 1
permit in the same manner. 2
(e) Any permit issued under this subtitle may be revoked or suspended by the 3
Secretary upon satisfactory proof that the seedsman has violated any provision of this 4
subtitle or any of the rules and regulations adopted under it. A permit may not be revoked 5
or suspended until the holder has been given an opportunity for a hearing by the Secretary. 6
(f) The Secretary may issue a stop–sale order to any wholesale seedsman who 7
offers or exposes seed for sale without holding a valid permit. 8
10–407. 9
(a) (1) The University of Maryland Extension shall create a “Maryland Native 10
Plants” webpage on the University of Maryland Extension’s website. 11
(c) A link to the “Maryland Native Plants” webpage shall be posted on the 12
Department of Natural Resources’ native plants website. 13
(d) For fiscal year 2025 and each fiscal year thereafter, the Governor [shall] MAY 14
include in the annual budget bill an appropriation of $150,000 for the University of 15
Maryland Extension to hire one extension agent as a Native Plant Specialist and $100,000 16
for the Department to hire staff to administer the Program. 17
11–204.4. 18
(a) Unless a registration for a weight and measure is renewed for a 1–year term, 19
the license expires 1 year from the effective date of the registration. 20
(B) AT LEAST 1 MONTH BEFORE A REGISTRATION FOR A WEIGHT AND 21
MEASURE EXPIRES , THE SECRETARY SHALL SEND EAC H PERSON WITH A KNOWN 22
REGISTRATION , BY ELECTRONIC MEANS OR FIRST–CLASS MAIL TO THE LA ST KNOWN 23
ELECTRONIC OR MAILIN G ADDRESS OF THE PERSON, A REGISTRATION RENEW AL 24
FORM AND A RENEWAL NOTICE THA T STATES: 25
(1) THE DATE ON WHICH THE CURRENT REGISTRATION EXPIRES; 26
(2) THAT THE RENEWAL APPL ICATION AND FEE MUST BE RECEIVED 27
BY THE SECRETARY ON OR BEFORE THE REGISTRATION EXPIRATION DATE ; AND 28
(3) THE AMOUNT OF THE REN EWAL FEE. 29
[(b)] (C) Before a registration for a weight and measure expires, the registration 30
may be renewed for an additional 1–year term, if the applicant: 31
(1) Is the owner or possessor of a weight and measure; 32 16 HOUSE BILL 352
(2) Pays the applicable fee as provided in § 11–204.7 of this subtitle; and 1
(3) Submits to the Secretary a renewal application on a form that the 2
Secretary provides. 3
(D) A PERSON WHO HAS A REGISTRATION F OR A WEIGHT AND MEAS URE HAS 4
A GRACE PERIOD OF 60 DAYS AFTER THE REGISTRATION EXPIRES IN WHICH TO 5
RENEW THE REGISTRATION RETROACTIVELY , IF THE PERSON: 6
(1) OTHERWISE IS ENTITLED TO RENEW THE REGISTRATION ; 7
(2) SUBMITS TO THE SECRETARY A RENEWAL APPLICATION ON THE 8
FORM REQUIRED BY THE SECRETARY; AND 9
(3) PAYS TO THE SECRETARY THE RENEWAL FEE AND LATE FEE SET 10
BY THE SECRETARY. 11
[(c)] (E) The owner or possessor of a weight and measure shall display the 12
registration conspicuously at each place of business where the weight and measure is 13
located. 14
[(d)] (F) If the weight and measure is sold, transferred, or moved to a new 15
location, the owner or possessor of a weight and measure shall notify the Secretary. 16
11–204.7. 17
The SECRETARY MAY SET REA SONABLE fees for registering each weight and 18
measure used for commercial purposes under this subtitle [are as follows: 19
(1) Scales with a capacity of up to 100 pounds (maximum fee per business 20
location: $375)...……………………………………………………………………………………. $20 21
for each scale, plus $50 for each business location; 22
(2) Scales with a capacity of more than 100 pounds, up to 2,000 23
pounds…………………………………………………………………………………… ……….....$60; 24
(3) Scales with a capacity of more than 2,000 pounds ......................... $100; 25
(4) Belt conveyor scales ......................................................................... $300; 26
(5) Railroad track scales ........................................................................ $300; 27
(6) Vehicle scales ................................................................................... $250; 28
(7) Grain moisture meter ...................................................................... $100; 29 HOUSE BILL 352 17
(8) Retail motor fuel dispenser meter of under 20 gallons per 1
minute…………………………………………………………………………...…… ………… .$12.50 2
for each meter, plus $50 for each business location; 3
(9) Retail motor fuel dispenser meter of 20 gallons per minute or 4
more....................................................................................................................……………$45; 5
(10) Bulk petroleum fuel meter of 20 gallons per minute, up to 150 gallons 6
per minute............................................................................................................................$50; 7
(11) Bulk petroleum fuel meter of 150 gallons per minute or more……..$85; 8
(12) Liquefied petroleum gas meters ................................................. $75; and 9
(13) Point of sale system, as defined by the National Institute of Standards 10
and Technology (NIST) Handbook 44, connected to a weighing or measuring device (per 11
business location)……………………………………………………………… ………… ……..$100]. 12
Article – Alcoholic Beverages and Cannabis 13
1–323. 14
(a) (1) In this section the following words have the meanings indicated. 15
(4) “Grant Program” means the Social Equity Partnership Grant Program. 16
(f) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include 17
in the annual budget bill an appropriation of $5,000,000 for the Grant Program, UTILIZING 18
THE CANNABIS REGULATION AND ENFORCEMENT FUND ESTABLISHED UNDE R § 19
36–206 OF THIS ARTICLE . 20
36–206. 21
(a) In this section, “Fund” means the Cannabis Regulation and Enforcement 22
Fund. 23
(b) There is a Cannabis Regulation and Enforcement Fund. 24
(c) The purpose of the Fund is to provide funds to cover the costs of: 25
(1) the operation of the Administration; [and] 26
(2) administering and enforcing this title; AND 27
18 HOUSE BILL 352
(3) SUPPORTING THE SOCIAL EQUITY PARTNERSHIP GRANT 1
PROGRAM ESTABLISHED U NDER § 1–323 OF THIS ARTICLE . 2
(g) The Fund may be used [only] for carrying out this title AND SUPPORTING 3
THE SOCIAL EQUITY PARTNERSHIP GRANT PROGRAM ESTABLISHED U NDER § 4
1–323 OF THIS ARTICLE . 5
Article – Commercial Law 6
14–4101. 7
(a) In this subtitle the following words have the meanings indicated. 8
(b) “Commissioner” means the Commissioner of Financial Regulation in the 9
Maryland Department of Labor. 10
(c) “Office” means the Office of the Attorney General. 11
14–4104. 12
(a) (1) (i) For fiscal year 2025 only, the Governor may include in the annual 13
budget bill an appropriation of at least $700,000 in special funds for the Office for the 14
purposes of enforcement of: 15
1. Consumer protection laws under this title; 16
2. Consumer protection laws under Title 13 of this article; 17
and 18
3. Financial consumer protection laws. 19
(ii) For fiscal year 2026 and each fiscal year thereafter, the Governor 20
shall include in the annual budget bill an appropriation of at least $350,000 in [general] 21
SPECIAL funds for the Office for the purposes of enforcement of: 22
1. Consumer protection laws under this title; 23
2. Consumer protection laws under Title 13 of this article; 24
and 25
3. Financial consumer protection laws. 26
(2) The Office shall use the funds under paragraph (1) of this subsection 27
for: 28
(i) Staffing costs associated with hiring new employees; and 29 HOUSE BILL 352 19
(ii) Investigations of alleged violations of consumer protection laws 1
in the State. 2
(b) (1) For fiscal year 2020 and each fiscal year thereafter, the Governor shall 3
include an appropriation of at least $300,000 in general funds in the State budget for the 4
Commissioner for the purposes of enforcement of financial consumer protection laws. 5
(2) The Commissioner shall use the funds under paragraph (1) of this 6
subsection for: 7
(i) Staffing costs associated with hiring new employees; and 8
(ii) Investigations of alleged violations of consumer protection laws 9
in the State. 10
Article – Corporations and Associations 11
11–208. 12
(a) In this section, “Fund” means the Securities Act Registration Fund. 13
(b) There is a Securities Act Registration Fund. 14
(g) The Fund may be used [only] to administer and enforce the Maryland 15
Securities Act AND TO SUPPORT THE G ENERAL OPERATIO NS OF THE MARYLAND 16
OFFICE OF THE ATTORNEY GENERAL. 17
Article – Criminal Procedure 18
11–934. 19
(b) (1) The Governor’s Office of Crime Prevention and Policy shall help support 20
programs providing services for victims of crime throughout the State. 21
(2) The victim services programs shall be developed and located to 22
facilitate their use by alleged victims residing in surrounding areas. 23
(c) (1) The Governor’s Office of Crime Prevention and Policy may award 24
grants to public or private nonprofit organizations to operate the victim services programs. 25
(2) Except as provided in paragraph (3) of this subsection, the programs 26
shall provide services to victims of crime as authorized by the federal Victims of Crime Act 27
and related regulations. 28
(f) (2) In each fiscal year, the Governor shall include in the annual budget bill 29
[an] A GENERAL FUND appropriation [that, together with the amount received under the 30 20 HOUSE BILL 352
federal Victims of Crime Act in the prior year, totals an aggregate $60,000,000] OF 1
$35,000,000 for the victim services programs funded under this section. 2
Article – Economic Development 3
10–501. 4
(a) In this subtitle the following words have the meanings indicated. 5
(f) “Corporation” means the Maryland Agricultural and Resource –Based 6
Industry Development Corporation. 7
10–526. 8
(a) (1) In this section the following words have the meanings indicated. 9
(4) “Program” means the Maryland Watermen’s Microloan Program. 10
(b) There is a Maryland Watermen’s Microloan Program in the Corporation. 11
(g) (1) For each of fiscal years 2024 through [2026] 2025, the Governor shall 12
include in the annual State budget bill an appropriation of $500,000 to the Program. 13
13–601. 14
(a) In this subtitle the following words have the meanings indicated. 15
(c) “Council” means the Tri–County Council for Southern Maryland. 16
13–611. 17
(a) The State and Calvert, Charles, and St. Mary’s counties may jointly finance 18
the Council and its activities. 19
(b) (1) The State may provide financial support to the Council to assist in 20
carrying out the activities of the Council. 21
(3) (i) The Governor shall include in the State budget for the following 22
fiscal year an appropriation to partially support the Council. 23
(ii) 1. For fiscal [year 2024 and each fiscal year thereafter] 24
YEARS 2024 AND 2025, the Governor shall include in the annual budget bill an 25
appropriation of $1,000,000 to the Council from the Cigarette Restitution Fund established 26
under § 7–317 of the State Finance and Procurement Article. 27
HOUSE BILL 352 21
2. FOR FISCAL YEAR 2026, THE GOVERNOR SHALL 1
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $750,000 TO THE 2
COUNCIL FROM THE CIGARETTE RESTITUTION FUND ESTABLISHED UNDE R § 7–317 3
OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 4
3. FOR FISCAL YEAR 2027, THE GOVERNOR SHALL 5
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $500,000 TO THE 6
COUNCIL FROM THE CIGARETTE RESTITUTION FUND ESTABLISHED UNDE R § 7–317 7
OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 8
4. FOR FISCAL YEAR 2028, THE GOVERNOR SHALL 9
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $250,000 TO THE 10
COUNCIL FROM THE CIGARETTE RESTITUTION FUND ESTABLISHED UNDE R § 7–317 11
OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
[2.] (III) The Council shall use funds appropriated from the 13
Cigarette Restitution Fund for the purpose of funding the activities of the Southern 14
Maryland Agricultural Development Commission. 15
[3.] (IV) The appropriation required under 16
[subsubparagraph 1 of this subparagraph] THIS PARAGRAPH shall be in addition to, and 17
may not supplant, any funding appropriated to the Council. 18
Article – Education 19
7–414.1. 20
(a) (1) In this section the following words have the meanings indicated. 21
(2) “Fund” means the Driver Education in Public High Schools Fund. 22
(3) “Program” means the Driver Education in Public High Schools Grant 23
Program. 24
(b) There is a Driver Education in Public High Schools Grant Program in the 25
Department. 26
(f) (1) There is a Driver Education in Public High Schools Fund. 27
(4) The Fund consists of[: 28
(i) Money received by the Fund from fines for vehicle security lapses 29
under § 17–106 of the Transportation Article; and 30
22 HOUSE BILL 352
(ii) Any other] ANY money from any [other] source accepted for the 1
benefit of the Fund. 2
(5) The Fund may be used only for: 3
(i) Providing grants under the Program; and 4
(ii) Administrative costs of the Program. 5
7–447.1. 6
(p) (1) In this subsection, “Fund” means the Coordinated Community Supports 7
Partnership Fund. 8
(3) The purpose of the Fund is to support the delivery of services and 9
supports provided to students to meet their holistic behavioral health needs and address 10
other related challenges. 11
(9) The Governor shall include in the annual budget bill the following 12
appropriations for the Fund: 13
(i) $25,000,000 in fiscal year 2022; 14
(ii) $50,000,000 in fiscal year 2023; 15
(iii) $85,000,000 in fiscal year 2024; AND 16
(iv) [$110,000,000 in fiscal year 2025; and 17
(v) $130,000,000] $40,000,000 in fiscal year [2026] 2025 and each 18
fiscal year thereafter. 19
7–810. 20
(a) (1) In this section the following words have the meanings indicated. 21
(2) “Fund” means the State–Aided Institutions Field Trip Fund. 22
(3) “Program” means the State–Aided Institutions Field Trip Grant 23
Program. 24
(b) There is a State–Aided Institutions Field Trip Grant Program in the 25
Department. 26
(f) (1) There is a State–Aided Institutions Field Trip Fund. 27
(4) The Fund consists of[: 28 HOUSE BILL 352 23
(i) Money received by the Fund from fines for vehicle security lapses 1
under § 17–106 of the Transportation Article; and 2
(ii) Any other] ANY money from any [other] source accepted for the 3
benefit of the Fund. 4
(5) The Fund may be used only for: 5
(i) Providing grants under the Program; and 6
(ii) Administrative costs of the Program. 7
7–1501. 8
(a) In this subtitle the following words have the meanings indicated. 9
(f) “Fund” means the Safe Schools Fund. 10
7–1508. 11
(e) (2) Beginning with the 2019–2020 school year, and each school year 12
thereafter, before the school year begins, each local school system shall, in accordance with 13
the plan developed under subsection (d)(2) of this section, file a report identifying: 14
(i) The public schools in the local school system’s jurisdiction that 15
have a school resource officer assigned to the school; and 16
(ii) If a public school in the local school system’s jurisdiction is not 17
assigned a school resource officer, the adequate local law enforcement coverage that will be 18
provided to the public school. 19
(g) (1) For fiscal year 2020 and each fiscal year thereafter, the Governor shall 20
include in the annual budget bill an appropriation of $10,000,000 [to the Fund] for the 21
purpose of providing grants to local school systems and local law enforcement agencies to 22
assist in meeting the requirements of subsection (e) of this section. 23
(2) Grants provided under this subsection shall be made to each local 24
school system based on the number of schools in each school system in proportion to the 25
total number of public schools in the State in the prior year. 26
8–415. 27
(d) (1) In this subsection, “basic cost” as to each county, means the average 28
amount spent by the county from county, State, and federal sources for the public education 29
of a nonhandicapped child. “Basic cost” does not include amounts specifically allocated and 30
spent for identifiable compensatory programs for disadvantaged children. 31 24 HOUSE BILL 352
(2) As provided in paragraphs (3) and (4) of this subsection, the State and 1
the counties shall share collectively in the cost of educating children with disabilities in 2
nonpublic programs under § 8–406 of this subtitle. 3
(3) (i) Subject to the limitation under subparagraph (ii) of this 4
paragraph, for each of these children domiciled in the county, the county shall contribute 5
for each placement the sum of: 6
1. The local share of the basic cost; 7
2. An additional amount equal to 200 percent of the basic 8
cost; and 9
3. A. For fiscal year 2009, an additional amount equal to 10
20 percent of the approved cost or reimbursement in excess of the sum of items 1 and 2 of 11
this subparagraph; [and] 12
B. For fiscal [year 2010 and each subsequent fiscal year 13
thereafter] YEARS 2010 THROUGH 2025, an additional amount equal to 30 percent of the 14
approved cost or reimbursement in excess of the sum of items 1 and 2 of this subparagraph; 15
C. FOR FISCAL YEAR 2026, AN ADDITIONAL AMOUNT 16
EQUAL TO 40 PERCENT OF THE APPRO VED COST OR REIMBURS EMENT IN EXCESS OF 17
THE SUM OF ITEMS 1 AND 2 OF THIS SUBPARAGRAPH ; AND 18
D. FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR 19
THEREAFTER , AN ADDITIONAL AMOUNT EQUAL TO 50 PERCENT OF THE APPRO VED 20
COST OR REIMBURSEMEN T IN EXCESS OF THE S UM OF ITEMS 1 AND 2 OF THIS 21
SUBPARAGRAPH . 22
(ii) The amount that a county is required to contribute under 23
subparagraph (i) of this paragraph may not exceed the total cost or reimbursement amount 24
approved by the Department. 25
(4) For each of these children, the State shall contribute an amount equal 26
to the amount of the approved cost or reimbursement in excess of the amount the county is 27
required to contribute under paragraph (3) of this subsection. 28
14–405. 29
(b) (1) In order to ensure a stable and predictable level of funding, the 30
Governor shall include in the annual budget submission a General Fund grant to St. Mary’s 31
College of Maryland. 32
HOUSE BILL 352 25
(2) (i) For fiscal year 1993, the grant shall be as provided for in the 1
State fiscal year 1993 appropriation. 2
(ii) For fiscal [year 1994 and each year thereafter] YEARS 1994 3
THROUGH 2025, the proposed grant shall be equal to the grant of the prior year augmented 4
by funds required to offset inflation as indicated by the implicit price deflator for State and 5
local government. 6
(iii) [Beginning in fiscal year 2019] FOR FISCAL YEARS 2019 7
THROUGH 2025, if the College’s 6–year graduation rate as reported by the Maryland 8
Higher Education Commission is 82% or greater in the second preceding fiscal year, the 9
proposed grant for the upcoming fiscal year shall be increased by 0.25%. 10
(3) (i) [Beginning in fiscal year 2019] FOR FISCAL YEARS 2019 11
THROUGH 2025, in addition to the grant provided under paragraph (2) of this subsection, 12
the College shall receive the amounts specified under this paragraph. 13
(ii) For each fiscal year, the State shall provide to the College funds 14
to pay for the increase in State–supported health insurance costs of the College. 15
(iii) For each fiscal year in which the State provides a cost–of–living 16
adjustment for State employees, the State shall provide to the College 100% of the 17
cost–of–living adjustment wage increase for State–supported employees of the College. 18
(iv) For each fiscal year in which the State provides funds to other 19
public senior higher education institutions to moderate undergraduate resident tuition 20
increases, it is the intent of the General Assembly that the State shall provide to the College 21
funds for the same purpose. 22
(4) Funding provided under paragraph (3) of this subsection THROUGH 23
FISCAL YEAR 2025: 24
(i) May not be included in the calculation of the proposed grant 25
under paragraph (2) of this subsection for any following fiscal year; and 26
(ii) Shall be provided in the same amount in each following fiscal 27
year. 28
(5) The State shall pay the General Fund grants under this subsection to 29
the College on a quarterly basis. 30
(6) Nothing in this subsection may be construed to restrict the budgetary 31
power of the General Assembly. 32
26 HOUSE BILL 352
(7) Except as provided in paragraph (3) of this subsection, the College shall 1
support all operating costs, including personnel and retirement costs, from its General 2
Fund grant and the other revenue sources of the College. 3
16–512. 4
(a) In this section, “State Funds per full–time equivalent student appropriation 5
to the 4–year public institutions of higher education” has the meaning stated in § 6
17–104(a)(1) of this article. 7
(b) (1) The total State operating fund per full–time equivalent student 8
appropriated to Baltimore City Community College for each fiscal year other than fiscal 9
year 2013, as requested by the Governor shall be: 10
(i) In fiscal year 2009, not less than an amount equal to 67.25% of 11
the State’s General Fund appropriation per full–time equivalent student to the 4–year 12
public institutions of higher education in the State as designated by the Commission for 13
the purpose of administering the Joseph A. Sellinger Program under Title 17 of this article 14
in the previous fiscal year; 15
(ii) In fiscal year 2010, not less than an amount equal to 65.1% of the 16
State’s General Fund appropriation per full–time equivalent student to the 4–year public 17
institutions of higher education in the State as designated by the Commission for the 18
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 19
the same fiscal year; 20
(iii) In fiscal year 2011, not less than an amount equal to 65.5% of the 21
State’s General Fund appropriation per full–time equivalent student to the 4–year public 22
institutions of higher education in the State as designated by the Commission for the 23
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 24
the same fiscal year; 25
(iv) In fiscal year 2012, not less than an amount equal to 63% of the 26
State’s General Fund appropriation per full–time equivalent student to the 4–year public 27
institutions of higher education in the State as designated by the Commission for the 28
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 29
the same fiscal year; 30
(v) In fiscal year 2014, an amount that is the greater of 61% of the 31
State’s General Fund appropriation per full–time equivalent student to the 4–year public 32
institutions of higher education in the State as designated by the Commission for the 33
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 34
the same fiscal year or $5,695.63 per full–time equivalent student; 35
(vi) In fiscal year 2015, an amount that is the greater of 61% of the 36
State’s General Fund appropriation per full–time equivalent student to the 4–year public 37
institutions of higher education in the State as designated by the Commission for the 38 HOUSE BILL 352 27
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 1
the same fiscal year or $5,695.63 per full–time equivalent student; 2
(vii) In fiscal year 2016, an amount that is the greater of 58% of the 3
State’s General Fund appropriation per full–time equivalent student to the 4–year public 4
institutions of higher education in the State as designated by the Commission for the 5
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 6
the same fiscal year or $5,695.63 per full–time equivalent student; 7
(viii) In fiscal year 2017, an amount that is the greater of 58% of the 8
State’s General Fund appropriation per full–time equivalent student to the 4–year public 9
institutions of higher education in the State as designated by the Commission for the 10
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 11
the same fiscal year or $5,695.63 per full–time equivalent student; 12
(ix) In fiscal year 2018, not less than an amount equal to 60% of the 13
State’s General Fund appropriation per full–time equivalent student to the 4–year public 14
institutions of higher education in the State as designated by the Commission for the 15
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 16
the same fiscal year; 17
(x) In fiscal year 2019, not less than an amount equal to 61% of the 18
State’s General Fund appropriation per full–time equivalent student to the 4–year public 19
institutions of higher education in the State as designated by the Commission for the 20
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 21
the same fiscal year; 22
(xi) In fiscal year 2020, not less than an amount equal to 62.5% of the 23
State’s General Fund appropriation per full–time equivalent student to the 4–year public 24
institutions of higher education in the State as designated by the Commission for the 25
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 26
the same fiscal year; 27
(xii) In fiscal year 2021, not less than an amount equal to 64.5% of the 28
State’s General Fund appropriation per full–time equivalent student to the 4–year public 29
institutions of higher education in the State as designated by the Commission for the 30
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 31
the same fiscal year; 32
(xiii) In fiscal year 2022, not less than an amount equal to 66.5% of the 33
State’s General Fund appropriation per full–time equivalent student to the 4–year public 34
institutions of higher education in the State as designated by the Commission for the 35
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 36
the same fiscal year; and 37
(xiv) In fiscal year 2023 and each fiscal year thereafter, not less than 38
an amount equal to 68.5% of the State Funds per full –time equivalent student 39 28 HOUSE BILL 352
appropriation to the 4–year public institutions of higher education in the State as 1
designated by the Commission for the purpose of administering the Joseph A. Sellinger 2
Program under Title 17 of this article. 3
(2) For purposes of this subsection, the State Funds per full–time 4
equivalent student appropriation to the 4–year public institutions of higher education in 5
the State for a fiscal year shall include: 6
(i) Noncapital appropriations from the Higher Education 7
Investment Fund; and 8
(ii) Appropriations, regardless of where they are budgeted, 9
designated for the general operation of 4–year public institutions of higher education in the 10
State, including personnel–related appropriations. 11
(3) Notwithstanding the provisions of paragraph (1) of this subsection, the 12
total State operating fund appropriated to Baltimore City Community College under this 13
section for each of fiscal years 2011 and 2012 shall be $40,187,695. 14
(4) In fiscal year 2013, the total State operating funds appropriated to 15
Baltimore City Community College under this section shall be $39,863,729. 16
(5) IN FISCAL YEAR 2026, THE TOTAL STATE OPERATING FUNDS 17
APPROPRIATED TO BALTIMORE CITY COMMUNITY COLLEGE UNDER THIS SE CTION 18
SHALL BE $44,734,265. 19
(c) Notwithstanding subsection (b) of this section, the State appropriation to 20
Baltimore City Community College requested by the Governor may not be less than the 21
State appropriation to the College in the previous fiscal year. 22
18–3701. 23
(a) In this subtitle the following words have the meanings indicated. 24
(f) “Program” means the Maryland Loan Assistance Repayment Program for 25
Police Officers and Probation Agents. 26
18–3704. 27
The Governor shall include in the annual budget bill an appropriation of at least 28
[$5,000,000] $200,000 for the Program. 29
18–3802. 30
(a) There is a Maryland Police Officers and Probation Agents Scholarship 31
Program. 32
HOUSE BILL 352 29
(b) The purpose of the program is to provide tuition assistance for students who 1
are: 2
(1) Attending an eligible institution and enrolled in a degree program that 3
would further the student’s intent to become a police officer or probation agent after 4
graduation; or 5
(2) Employed as a police officer or probation agent, attending an eligible 6
institution, and enrolled in a degree program that would further the police officer’s or 7
probation officer’s career. 8
18–3806. 9
The Governor shall include in the annual budget bill an appropriation of at least 10
[$5,000,000] $200,000 to the Commission to award scholarships under this subtitle[, and 11
the Commission shall use: 12
(1) $2,500,000 for scholarships to students intending to become police 13
officers or probation agents after graduation; and 14
(2) $2,500,000 for scholarships for existing police officers or probation 15
agents to attend an eligible institution and remain a police officer or probation agent after 16
graduation]. 17
Article – Environment 18
4–104. 19
(a) In this section, “responsible personnel” means any foreman, superintendent, 20
or project engineer who is in charge of on–site clearing and grading operations or sediment 21
control associated with a construction project. 22
(b) (1) After July 1, 1983, any applicant for sediment and erosion control plan 23
approval shall certify to the appropriate jurisdiction that any responsible personnel 24
involved in the construction project will have a certificate of attendance at a Department 25
[of the Environment] approved training program for the control of sediment and erosion 26
before beginning the project. 27
(2) A certificate shall be [valid]: 28
(I) VALID for a 3–year period[. A certificate shall be automatically]; 29
AND 30
(II) AUTOMATICALLY renewed unless the Department [of the 31
Environment] notifies the certificate holder that additional training is required. 32
30 HOUSE BILL 352
(c) The appropriate governmental entity authorized to approve grading and 1
sediment control plans may waive the requirement of this section for the responsible 2
personnel on any project involving four or fewer residential units. 3
(d) Any person may develop and conduct a training program if the program 4
content and instructor are approved by and meet the requirements set by the Department 5
of the Environment. 6
(E) (1) THE DEPARTMENT MAY ESTABL ISH BY REGULATION A FEE FOR 7
PROCESSING AND ISSUI NG THE CERTIFICATION . 8
(2) A FEE ESTABLISHED IN ACCORDANCE WITH T HIS SUBSECTION 9
SHALL BE SET AT A RA TE THAT PRODUCES FUN DS APPROXIMATELY THE SAME AS 10
THE COST OF PROCESSING A ND ISSUING THE CERTI FICATION. 11
(3) THE DEPARTMENT SHALL DEPO SIT ANY FEE COLLECTE D IN 12
ACCORDANCE WITH THIS SUBSECTION INTO THE MARYLAND CLEAN WATER FUND 13
ESTABLISHED UNDER § 9–320 OF THIS ARTICLE. 14
5–203.1. 15
(a) (1) In this section the following words have the meanings indicated. 16
(6) “Major project” means a project that: 17
(i) Proposes to permanently impact 5,000 square feet or more of 18
wetlands or waterways, including the 100–year floodplain; 19
(ii) Is located in an area identified as potentially impacting a 20
nontidal wetland of special State concern by a geographical information system database 21
that: 22
1. Has been developed and maintained by the Department of 23
Natural Resources; and 24
2. Is used by the Department to s creen incoming 25
applications; or 26
(iii) Requires the issuance of a public notice by the Department. 27
(8) “Minor project” means a project that: 28
(i) Proposes to permanently impact less than 5,000 square feet of 29
wetlands or waterways, including the 100–year floodplain; and 30
(ii) Does not meet the definition of a major project. 31 HOUSE BILL 352 31
(9) “Residential activity” means a noncommercial activity that is conducted 1
on residential property. 2
(10) (i) “Residential property” means improved property that is used 3
primarily as a residence or unimproved property that is zoned for use as a residence. 4
(ii) “Residential property” includes: 5
1. Property owned by a homeowners’ association; and 6
2. A condominium. 7
(iii) “Residential property” does not include: 8
1. A commercial building; 9
2. A marina; or 10
3. A residential apartment complex or building. 11
(12) “TIER II HIGH QUALITY WATERSHED” MEANS THE LAND AND 12
WATER AREAS THAT DRAIN TOWARD OR INTO A TIER II HIGH QUALITY WATERSHED 13
AS DESIGNATED AND ID ENTIFIED IN A GEOGRA PHIC INFORMATION SYS TEM BY THE 14
DEPARTMENT . 15
(b) (1) Except as provided under paragraphs (2), (3), [and] (6), AND (7) of this 16
subsection, all applications for wetlands and waterways authorizations issued by the 17
Department under §§ 5–503 and 5–906 of this title and §§ 16–202, 16–302, and 16–307 of 18
this article or wetlands licenses issued by the Board of Public Works under § 16–202 of this 19
article shall be accompanied by an application fee as follows: 20
(i) For an application for a minor project or general 21
permit...............................................................................................................................[$750] 22
$980; 23
(ii) For an application for a minor modification…………..……..[$250] 24
$330; 25
(iii) For an application for a major project with a proposed permanent 26
impact of: 27
1. Less than 1/4 acre……..……………………………… [$1,500] 28
$1,950; 29
32 HOUSE BILL 352
2. At least 1/4 acre, but less than 1/2 acre………..…..[$3,000] 1
$3,890; 2
3. At least 1/2 acre, but less than 3/4 acre…………....[$4,500] 3
$5,830; 4
4. At least 3/4 acre, but less than 1 acre……………....[$6,000] 5
$7,780; and 6
5. 1 acre or more.......the impact area in acres multiplied by 7
[$7,500] $9,720; and 8
(iv) For an application for a major modification………….……[$1,500] 9
$1,950. 10
(3) Except as provided in paragraph (4) of this subsection, the following 11
shall be minor projects and subject to the appropriate application fee under [paragraph] 12
PARAGRAPHS (1)(i) and (ii) AND (7)(I) of this subsection: 13
(i) A residential activity issued a permit under §§ 5–503 and 5–906 14
of this title and §§ 16–202, 16–302, and 16–307 of this article; and 15
(ii) A mining activity undertaken on affected land as identified in a 16
permit issued under Title 15 of this article. 17
(4) Subject to [paragraph] PARAGRAPHS (5) AND (7) of this subsection, 18
an application for the following minor projects shall be accompanied by the following 19
application fees: 20
(i) Installation of: 21
1. One boat lift or hoist, not exceeding four boat lifts or hoists 22
per pier; 23
2. One personal watercraft lift or hoist, not exceeding six 24
personal watercraft lifts or hoists per pier; or 25
3. A combination of boat lifts or hoists and personal 26
watercraft lifts or hoists, not exceeding six lifts or hoists per pier, of which not more than 27
four lifts or hoists are boat lifts or hoists [$300] $385; 28
(ii) Installation of a maximum of six mooring pilings……….….[$300] 29
$390; 30
(iii) In–kind repair and replacement of structures……………...[$300] 31
$390; 32 HOUSE BILL 352 33
(iv) Installation of a fixed or floating platform on an existing pier 1
where the total platform area does not exceed 200 square feet……………………...……[$300] 2
$390; 3
(v) Construction of a nonhabitable structure that permanently 4
impacts less than 1,000 square feet, such as a driveway, deck, pool, shed, or 5
fence..................................................................................................................................[$300] 6
$390; 7
(vi) Replacement of an existing bulkhead where the replacement 8
bulkhead does not exceed more than 18 inches channelward of the existing 9
structure...........................................................................................................................[$500] 10
$650; and 11
(vii) In–kind repair and r eplacement of existing 12
infrastructure...................................................................................................................[$500] 13
$650. 14
(6) The application fee for a structural shoreline stabilization project 15
located on or adjacent to a State–owned lake may not exceed [$250] $290. 16
(7) [The fees imposed under this subsection may not be modified without 17
legislative enactment. 18
(8) (i) Subject to paragraph (7) of this subsection, the] EXCEPT AS 19
PROVIDED IN PARAGRAP HS (2) AND (5) OF THIS SUBSECTION , ALL APPLICATIONS 20
FOR WETLANDS AND WAT ERWAYS AUTHORIZATION S ISSUED BY THE DEPARTMENT 21
FOR ACTIVITIES PROPO SED IN A TIER II HIGH QUALITY WATERSHED SHALL BE 22
ACCOMPANIED BY AN AD DITIONAL APPLICATION FEE, AS FOLLOWS: 23
(I) FOR AN APPLICATION FO R A MINOR PROJECT OR MINOR 24
MODIFICATION …………………………………… ……..……………………………….$400; 25
AND 26
(II) FOR AN APPLICATION FO R A MAJOR PROJECT OR MAJOR 27
PROJECT MODIFICATIO N………………………………………………………….….$1,600. 28
(8) (I) THE Department may adjust the fees established under 29
paragraphs (1), (4), [and] (6), AND (7) of this subsection to reflect changes in the consumer 30
price index for all “urban consumers” for the expenditure category “all items not seasonally 31
adjusted”, and for all regions. 32
(ii) The Annual Consumer Price Index for the period ending each 33
December, as published by the Bureau of Labor Statistics of the U.S. Department of Labor, 34 34 HOUSE BILL 352
shall be used to adjust the fees established under paragraphs (1), (4), [and] (6), AND (7) of 1
this subsection. 2
(III) THE DEPARTMENT SHALL ISSU E A PUBLIC NOTICE OF THE 3
ADJUSTED FEES AT LEA ST 90 DAYS BEFORE THE NEW FEE RATES TAKE EFFEC T. 4
(c) (1) There is a Wetlands and Waterways Program Fund. 5
(5) In accordance with subsection (e) of this section, the Department shall 6
use the Wetlands and Waterways Program Fund for activities related to: 7
(i) The issuance of authorizations by the Department under §§ 8
5–503 and 5–906 of this title and §§ 16–202, 16–302, and 16–307 of this article or the 9
issuance of wetlands licenses by the Board of Public Works under § 16–202 of this article; 10
(ii) The management, conservation, protection, and preservation of 11
the State’s wetlands and waterways resources, INCLUDING TIER II HIGH QUALITY 12
WATERS AND TIER II HIGH QUALITY WATERSHEDS ; and 13
(iii) Program development associated with this title and Title 16 of 14
this article, as provided by the State budget. 15
(d) On or before December 31 of each year, in accordance with § 2–1257 of the 16
State Government Article, the Department shall prepare and submit an annual report to 17
the House Environment and Transportation Committee, the House Appropriations 18
Committee, the Senate [Education, Health, and Environmental Affairs Committee] 19
EDUCATION, ENERGY, AND THE ENVIRONMENT COMMITTEE, and the Senate Budget 20
and Taxation Committee on the Wetlands and Waterways Program Fund, including an 21
accounting of financial receipts deposited into the Fund and expenditures from the Fund. 22
(e) The Department shall: 23
(1) Prioritize the use of the Wetlands and Waterways Program Fund to 24
improve the level of service to the regulated community; 25
(2) Identify and implement measures that will reduc e delays and 26
duplication in the administration of the wetlands and waterways permit process, including 27
the processing of applications for wetlands and waterways permits in accordance with § 28
1–607 of this article; and 29
(3) In conjunction with the Department of Natural Resources, identify up 30
to three types of structural shoreline stabilization practices that may be implemented on 31
or adjacent to a State–owned lake. 32
6–843. 33
HOUSE BILL 352 35
(a) (1) Except as provided in this subsection and subsection (b) of this section, 1
and in cooperation with the Department of Housing and Community Development, the 2
State Department of Assessments and Taxation, and other appropriate governmental 3
units, the Department shall provide for the collection of an annual fee for every rental 4
dwelling unit in the State. 5
(2) [The annual fee for an affected property is $30] FOR AN AFFECTED 6
PROPERTY, THE FEE: 7
(I) IS $120; AND 8
(II) SHALL BE COLLECTED BY THE DEPARTMENT ONCE EVERY 9
2 YEARS. 10
(3) (i) Subject to the provisions of subparagraphs (ii) and (iii) of this 11
paragraph, on or before December 31, 2000, the [annual] fee for a rental dwelling unit built 12
after 1949 that is not an affected property is $5. After December 31, 2000, there is no 13
[annual] fee for a rental dwelling unit built after 1949 that is not an affected property. 14
(ii) The owner of a rental dwelling unit built after 1949 that is not 15
an affected property may not be required to pay the fee provided under this paragraph if 16
the owner certifies to the Department that the rental dwelling unit is lead free pursuant to 17
§ 6–804 of this subtitle. 18
(iii) An owner of a rental dwelling unit who submits a report to the 19
Department that the rental dwelling unit is lead free pursuant to § 6–804 of this subtitle 20
shall include a [$10] $50 processing fee with the report. 21
(b) The fees imposed under this section do not apply to any rental dwelling unit: 22
(1) Built after 1978; or 23
(2) Owned and operated by a unit of federal, State, or local government, or 24
any public, quasi–public, or municipal corporation. 25
(c) (1) The fee imposed under this section shall be paid on or before December 26
31, 1995, or the date of registration of the affected property under Part III of this subtitle 27
and on or before December 31 [of each] EVERY OTHER year thereafter or according to a 28
schedule established by the Department by regulation. 29
(2) THE DEPARTMENT MAY ESTABL ISH A PROTOCOL TO STAGGER 30
REGISTRATIONS OF AFF ECTED PROPERTY UNDER PART III OF THIS SUBTITLE TO 31
EQUALLY DIVIDE REGIS TRATIONS OVER SEQUEN TIAL CALENDAR YEARS . 32
(d) An owner who fails to pay the fee imposed under this section is liable for a 33
civil penalty of up to triple the amount of each registration fee unpaid that, together with 34 36 HOUSE BILL 352
all costs of collection, including reasonable attorney’s fees, shall be collected in a civil action 1
in any court of competent jurisdiction. 2
7–503. 3
(a) There is a Voluntary Cleanup Program in the Department. 4
7–506. 5
(a) (1) To participate in the Program, an applicant shall: 6
(i) Submit an application, on a form provided by the Department, 7
that includes: 8
1. Information demonstrating to the satisfaction of the 9
Department that the contamination did not result from the applicant knowingly or willfully 10
violating any law or regulation concerning controlled hazardous substances; 11
2. Information demonstrating the person’s status as a 12
responsible person or an inculpable person; 13
3. Information demonstrating that the property is an eligible 14
property as defined in § 7–501 of this subtitle; 15
4. A detailed report with all available relevant information 16
on environmental conditions including contamination at the eligible property known to the 17
applicant at the time of the application; 18
5. An environmental site assessment that includes: 19
A. Established Phase I site assessment standards and follows 20
principles established by the American Society for Testing and Materials and that 21
demonstrates to the satisfaction of the Department that the assessment has been conducted 22
in accordance with those standards and principles; and 23
B. A Phase II site assessment unless the Department 24
concludes, after review of the Phase I site assessment, that there is sufficient information 25
to determine that there are no recognized environmental conditions, as defined by the 26
American Society for Testing and Materials; and 27
6. A description, in summary form, of a proposed voluntary 28
cleanup project that includes the proposed cleanup criteria under § 7–508 of this subtitle 29
and the proposed future use of the property, if appropriate; and 30
(ii) Subject to paragraph (2) of this subsection, pay to the 31
Department: 32
HOUSE BILL 352 37
1. An initial application fee of [$6,000] $10,000 which the 1
Department may reduce on a demonstration of financial hardship in accordance with 2
subsection (b) of this section; 3
2. An application fee of $2,000 for each application submitted 4
subsequent to the initial application for the same property; [and] 5
3. An application fee of $2,000 for each application submitted 6
subsequent to the initial application for contiguous or adjacent properties that are part of 7
the same planned unit development or a similar development plan; AND 8
4. IF THE DIRECT COSTS O F REVIEW OF THE 9
APPLICATION AND ADMI NISTRATION AND OVERS IGHT OF THE RESPONSE ACTION 10
PLAN EXCEED THE APPL ICATION FEE, THE ADDITIONAL COSTS INCURRED BY THE 11
DEPARTMENT . 12
(2) If an applicant certifies that the applicant intends to use the eligible 13
property to generate clean or renewable energy, the Department shall waive the fees 14
required under paragraph (1)(ii) of this subsection. 15
15–807. 16
(a) Except as otherwise provided in this subtitle, a person may not engage in 17
surface mining within the State without first obtaining a surface mining license. 18
(b) (1) An application for a license shall be in writing and on a form prepared 19
and furnished by the Department. 20
(2) If the application is made by a corporation, partnership, or association 21
[it], THE APPLICATION shall contain information concerning its officers, directors, and 22
principal owners, as the Department reasonably requires. 23
(c) (1) The application shall be accompanied by a [$300] $500 fee. [The] 24
(2) (I) A LICENSE RENEWAL FEE IS $300. 25
(II) A license shall be renewable annually[, and the renewal fee is 26
$150]. 27
(III) The application for renewal shall be made annually by January 28
1. 29
(d) The Department may not issue any new surface mining license or renew any 30
existing surface mining license to any person if it finds, after investigation, that the 31
applicant has failed and continues to fail to comply with any of the provisions of this 32
subtitle. 33 38 HOUSE BILL 352
(f) (1) Any person who violates the provisions of this section is guilty of a 1
misdemeanor and, on conviction, is subject to a fine of not more than $10,000. 2
(2) The fine shall be paid to the Surface Mined Land Reclamation Fund. 3
15–808. 4
(a) A licensee may not engage in surface mining within the State except on 5
affected land that is covered by a valid surface mining permit. 6
(c) A permit may cover more than one tract of land, if the tracts are contiguous 7
and are described in the application. 8
(f) (1) The fee for an original permit shall be [$12 for each acre of affected land 9
for each year of operation requested, but the fee may not exceed $1,000 per year]: 10
(I) $25 FOR EACH ACRE OF AFF ECTED LAND FOR EACH YEAR OF 11
OPERATION, NOT TO EXCEED $5,000; AND 12
(II) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 13
SUBSECTION, 1 CENT PER TON OF MINE D MATERIAL SOLD PER YEAR. 14
(2) THE PER TON OF MATERI AL SOLD FEE IN PARAG RAPH (1) OF THIS 15
SUBSECTION SHALL BE INCREASED BY .25 CENT PER TON IN FISC AL YEAR 2028 AND 16
EVERY 2 FISCAL YEARS THEREAF TER. 17
(g) The fee shall be paid annually during the term of the permit. 18
(h) (1) If the term of the permit exceeds 5 years, the permittee shall pay 19
additional fees, based on the formula in subsection (f) of this section for each 5–year portion 20
of the term of the permit. These additional fees shall be paid to the Department within 1 21
year before the completion of each 5–year portion of the term of the permit. 22
(2) Any permit that was granted on or before June 30, 1985, is not subject 23
to the additional fees required by paragraph (1) of this subsection until the time of 24
modification or renewal of the permit under §§ 15–815 and 15–816 of this subtitle. 25
(i) In addition, before a surface mining permit is issued the applicant shall pay a 26
special reclamation fee of $30 for each acre of land affected. The payment shall be based on 27
the same number of acres as that for which bond is required. 28
(k) (1) Any person who violates the provisions of this section or who knowingly 29
or intentionally has filed false information in the application for a permit, or who has not 30
fully complied with all provisions and requirements of the permit, is guilty of a 31
misdemeanor, and, on conviction, is subject to a fine of: 32 HOUSE BILL 352 39
(i) Not more than $25,000; and 1
(ii) An amount sufficient to cover the cost of reclaiming the affected 2
land. 3
(2) The fine and any payment for reclamation shall be paid into the Surface 4
Mined Land Reclamation Fund. 5
15–815. 6
(a) (1) Any permittee engaged in surface mining under a surface mining 7
permit may apply at any time for modification of the permit. 8
(2) The application shall be in writing on forms furnished by the 9
Department and fully state the information called for. 10
(3) [In addition, the] THE applicant may be required to furnish [other] 11
ADDITIONAL information THAT the Department reasonably deems necessary to enforce 12
this subtitle. [However, it is not necessary to resubmit information which has not changed 13
since the original application, if the applicant so states in writing] 14
(4) IF AN APPLICANT STATE S IN WRITING THAT IN FORMATION HAS 15
NOT CHANGED SINCE TH E ORIGINAL APPLICATI ON, THE APPLICANT IS NOT 16
REQUIRED TO RESUBMIT THAT INF ORMATION. 17
(b) (1) A modification under this section may affect [the]: 18
(I) THE land area covered by the permit[, the]; 19
(II) THE approved mining and reclamation plan coupled with the 20
permit[, or other]; OR 21
(III) OTHER terms and conditions of the permit. 22
(2) (I) A permit may be modified to include land contiguous to the 23
existing affected land, but not other lands. 24
(II) The mining and reclamation plan may be modified in any 25
manner, if the Department determines that the modified plan fully meets the standards 26
set forth in § 15–822 of this subtitle and that the modifications would be generally 27
consistent with the bases for the issuance of the original permit. 28
40 HOUSE BILL 352
(III) Other terms and conditions may be modified only if the 1
Department determines that the permit as modified would meet the requirements of §§ 2
15–808 and 15–810 of this subtitle. [No] 3
(IV) A modification may NOT extend the expiration date of any 4
permit issued under this subtitle. 5
(c) Except as otherwise provided in subsection (d) of this section, a [$100] $200 6
fee shall be charged for a permit modification. 7
(d) (1) In addition to the fee required in subsection (c) of this section, a fee shall 8
be charged equal to [$12 for each additional acre of affected land over and above the amount 9
of land covered in the original permit, for each year of operation]: 10
(I) $25 FOR EACH ADDITIONAL ACRE OF AFFECTED LAN D OVER 11
AND ABOVE THE AMOUNT OF LAND COVERED IN T HE ORIGINAL PERMIT F OR EACH 12
YEAR OF OPERATION , NOT TO EXCEED $5,000; AND 13
(II) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 14
SUBSECTION, 1 CENT PER TON OF MINE D MATERIAL SOLD PER YEAR. 15
(2) [The additional fee may not exceed $1,000 per year] THE PER TON OF 16
MATERIAL SOLD FEE IN PARAGRAPH (1) OF THIS SUBSECTION S HALL BE INCREASED 17
BY .25 CENT PER TON IN FISC AL YEAR 2028 AND EVERY 2 FISCAL YEARS 18
THEREAFTER . 19
(e) The Department shall approve and grant the permit modification requested 20
as expeditiously as possible but not later than 30 days after the application forms or any 21
supplemental information required are filed with the Department. 22
(f) The Department may deny the permit modification on finding: 23
(1) An uncorrected violation of the type listed in § 15–810(b)(7) of this 24
subtitle; 25
(2) Failure to submit an adequate mining and reclamation plan in light of 26
conditions existing at the time of the modification; or 27
(3) Failure or refusal to pay the modification fee. 28
(g) If the Department denies an application to modify a permit, the Department 29
shall give the permittee written notice of: 30
(1) The Department’s determination; 31
(2) Any changes in the application which would make it acceptable; and 32 HOUSE BILL 352 41
(3) The permittee’s right to a hearing at a stated time and place. 1
(h) The date for the hearing may not be less than 15 days nor more than 30 days 2
after the date of the notice unless the Department and the permittee mutually agree on 3
another date. 4
15–816. 5
(a) (1) The procedure to be followed and standards to be applied in renewing a 6
permit shall be the same as those for the initial application for a permit[, except that it is 7
not necessary to resubmit information which has not changed since the time of the original 8
application, if the applicant so states in writing. However, the applicant may be required]. 9
(2) IF AN APPLICANT STATE S IN WRITING THAT IN FORMATION HAS 10
NOT CHANGED SINCE TH E ORIGINAL APPLICATI ON, THE APPLICANT IS NOT 11
REQUIRED TO RESUBMIT THAT INFORMATION . 12
(3) THE DEPARTMENT MAY REQUIR E AN APPLICANT to furnish other 13
information the Department deems necessary to evaluate the renewal request. 14
(4) In the absence of any changes in legal requirements for the issuance of 15
a permit since the date on which the original permit was issued, the only basis for the denial 16
of a renewal permit shall be: 17
[(1)] (I) An uncorrected violation of the type listed in § 15–810(b)(7) of 18
this subtitle; 19
[(2)] (II) Failure to submit an adequate mining and reclamation plan in 20
light of conditions existing at the time of renewal; or 21
[(3)] (III) Failure or refusal to pay the renewal fee. 22
(b) Application for a renewal of a permit cannot be made any earlier than 1 year 23
prior to the expiration date of the original permit. 24
(c) (1) Except as otherwise provided in subsection (d) of this section, the fee to 25
be charged for a permit renewal shall be [$12 for each acre of affected land for each year of 26
operation, but not exceeding $1,000 per year]: 27
(I) $25 FOR EACH ACRE OF AFF ECTED LAND FOR EACH YEAR OF 28
OPERATION, NOT TO EXCEED $5,000; AND 29
(II) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 30
SUBSECTION, 1 CENT PER TON OF MINE D MATERIAL SOLD PER YEAR. 31 42 HOUSE BILL 352
(2) THE PER TON OF MATERI AL SOLD FEE IN PARAG RAPH (1) OF THIS 1
SUBSECTION SHALL BE INCREASED BY .25 CENT PER TON IN FISC AL YEAR 2028 AND 2
EVERY 2 FISCAL YEARS THEREAF TER. 3
(d) The fee shall be paid annually during the term of the permit. 4
(e) (1) If the term of a permit which is renewed exceeds 5 years, the permittee 5
shall pay additional fees, based on the formula in subsection (c) of this section, for each 6
5–year portion of the term of the renewed permit. 7
(2) These additional fees shall be paid to the Department within 1 year 8
before the completion of any 5–year portion of the term of the permit. 9
(f) If the Department denies an application to renew a permit, the Department 10
shall give the permittee written notice of: 11
(1) The Department’s determination; 12
(2) Any changes in the application that would make it acceptable; and 13
(3) The permittee’s right to a hearing at a stated time and place. 14
(g) The date for the hearing may not be less than 15 days nor more than 30 days 15
after the date of the notice unless the Department and the permittee mutually agree on 16
another date. 17
15–819. 18
(a) When the interest of a permittee in any uncompleted mining operation is sold, 19
leased, assigned, or otherwise disposed of, the Department may release the first permittee 20
from all liabilities imposed upon him by this subtitle with reference to the operation and 21
transfer the permit to the successor in interest, if both the permittee and the successor in 22
interest have complied with the requirements of this subtitle and the successor in interest 23
assumes the duties and responsibilities of the first permittee with reference to reclamation 24
of the land according to the authorized mining and reclamation plan and posts suitable 25
bond or other security required by § 15–823 of this subtitle. 26
(b) The successor in interest shall pay a [$500] $1,000 fee on filing a transfer of 27
permit. 28
(c) The Department shall approve and grant the permit transfer as expeditiously 29
as possible but not later than 30 days after the application forms or any supplemental 30
information required are filed with the Department. 31
(d) The Department may deny the permit transfer on finding: 32 HOUSE BILL 352 43
(1) That either permittee has an uncorrected violation of the type listed in 1
§ 15–810(b)(7) of this subtitle; 2
(2) Failure of the successor permittee to submit an adequate mining and 3
reclamation plan in light of conditions existing at the time of the modification; or 4
(3) Failure of the successor permittee to pay the transfer fee. 5
(e) If the Department denies an application to transfer a permit, the Department 6
shall give the permittee and the successor in interest written notice of: 7
(1) The Department’s determination; 8
(2) Any changes in the application which would make it acceptable; and 9
(3) The right of the permittee and the successor in interest to a hearing at 10
a stated time and place. 11
(f) The date for the hearing may not be less than 15 days nor more than 30 days 12
after the date of the notice unless the parties mutually agree on another date. 13
Article – Financial Institutions 14
13–1114. 15
(a) There is a Maryland Heritage Areas Authority Financing Fund. 16
(g) (1) In this subsection, “Program Open Space funds transferred to the 17
Authority” means the money appropriated to the Fund from Program Open Space funds 18
under § 5–903(a) of the Natural Resources Article. 19
(2) Except as provided in paragraph (3) of this subsection, Program Open 20
Space funds transferred to the Authority may not be used to pay the operating expenses of 21
the Authority, debt service of bonds issued by the Authority, or administrative expenses 22
related to bonds issued by the Authority. 23
(3) (i) Up to 10% of Program Open Space funds transferred to the 24
Authority may be used to pay the operating expenses of the Authority. 25
(ii) Up to 50% of Program Open Space funds transferred to the 26
Authority may be expended for debt service on bonds issued by the Authority. 27
(iii) For fiscal year 2012 only, an additional $500,000 of Program 28
Open Space funds transferred to the Authority may be used to pay operating expenses in 29
the Department of Planning. 30
44 HOUSE BILL 352
(IV) FOR FISCAL YEAR 2026 ONLY, AN ADDITIONAL $340,000 OF 1
PROGRAM OPEN SPACE FUNDS TRANSFERRED TO THE AUTHORITY MAY BE USED TO 2
PAY OPERATING EXPENS ES IN THE DEPARTMENT OF PLANNING. 3
Article – Health – General 4
7–101. 5
(a) In this title the following words have the meanings indicated. 6
(b) “Administration” means the Developmental Disabilities Administration. 7
(l) (1) “Individual–directed and family–directed goods and services” means 8
services, equipment, activities, or supplies for individuals who self–direct services that: 9
(i) Relate to a need or goal identified in the person–centered plan of 10
service; 11
(ii) Maintain or increase independence; 12
(iii) Promote opportunities for community living and inclusion; and 13
(iv) Are not available under another waiver service or services 14
provided under the State plan established in Subtitle 3 of this title. 15
(2) “Individual–directed and family–directed goods and services” includes 16
all goods or services authorized by regulations adopted or guidance issued by the federal 17
Centers for Medicare and Medicaid Services under § 1915(c) of the Social Security Act. 18
7–205. 19
(a) (1) There is a continuing, nonlapsing Waiting List Equity Fund in the 20
Maryland Department of Health. 21
(b) Subject to the appropriation process in the annual operating budget, the 22
Department shall use the Waiting List Equity Fund for providing community–based 23
services to individuals eligible for, but not receiving, services from the Developmental 24
Disabilities Administration. 25
(e) (1) [(i)] The Department shall adopt regulations for the management 26
and use of the money in the Fund. 27
[(ii)] (2) The regulations shall authorize the use of money in the 28
Fund to provide services to individuals: 29
[1.] (I) Who are in crisis and need emergency services; and 30 HOUSE BILL 352 45
[2.] (II) Who are not in crisis and do not need emergency 1
services. 2
[(2) The Waiting List Equity Fund may not be used to supplant funds 3
appropriated for: 4
(i) Emergency community placements; or 5
(ii) Transitioning students.] 6
7–409. 7
(c) (1) Subject to paragraph (2) of this subsection, the Administration may not 8
establish a limit on[: 9
(i) The dollar amount of individual–directed and family–directed 10
goods and services provided to a recipient; or 11
(ii) The] THE number of hours of personal support services provided 12
to a recipient who receives self–directed services that: 13
[1.] (I) Are necessary for the health and safety of the 14
recipient; and 15
[2.] (II) Are authorized by regulations adopted or guidance 16
issued by the federal Centers for Medicare and Medicaid Services under § 1915(c) of the 17
Social Security Act. 18
(2) A recipient may not receive services or supports in excess of the 19
recipient’s annual approved budget. 20
13–1116. 21
(a) (1) (i) For each of fiscal years 2011 and 2012: 22
1. The Governor shall include at least $2,400,000 in the 23
annual budget in appropriations for the Statewide Academic Health Center Cancer 24
Research Grants under this section; and 25
2. The Grants shall be distributed between the Statewide 26
Academic Health Centers as follows: 27
A. $2,007,300 to the University of Maryland Medical Group; 28
and 29
46 HOUSE BILL 352
B. $392,700 to the Johns Hopkins Institutions. 1
(ii) For fiscal [year] YEARS 2013 [and each fiscal year thereafter] 2
THROUGH 2025: 3
1. The Governor shall include at least $13,000,000 in the 4
annual budget in appropriations for the Statewide Academic Health Center Cancer 5
Research Grants under this section; and 6
2. The Grants shall be distributed according to historical 7
allocations between the Academic Health Centers. 8
(III) FOR FISCAL YEAR 2026 AND EACH FIS CAL YEAR 9
THEREAFTER : 10
1. THE GOVERNOR MAY INCLUDE AT LEAST $13,000,000 11
IN THE ANNUAL BUDGET IN APPROPRIATIONS FO R THE STATEWIDE ACADEMIC 12
HEALTH CENTER CANCER RESEARCH GRANTS UNDER THIS SEC TION; AND 13
2. THE GRANTS SHALL BE DISTR IBUTED ACCORDING TO 14
HISTORICAL ALLOCATION S BETWEEN THE ACADEMIC HEALTH CENTERS. 15
(2) Subject to the other provisions of this section, the Department may 16
distribute Statewide Academic Health Center Cancer Research Grants to the University of 17
Maryland Medical Group and the Johns Hopkins Institutions for the purpose of enhancing 18
cancer research activities that may lead to a cure for a targeted cancer and increasing the 19
rate at which cancer research activities are translated into treatment protocols in the State. 20
15–157. 21
(A) IN THIS SECTION , “FUND” MEANS THE MEDICAID PRIMARY CARD 22
PROGRAM FUND. 23
(B) THERE IS A MEDICAID PRIMARY CARD PROGRAM FUND IN THE 24
DEPARTMENT . 25
(C) THE PURPOSE OF THE FUND IS TO SERVE AS T HE FOUNDATION FOR 26
ADVANCING PRIMARY CA RE IN THE STATE UNDER THE ADVANCING ALL–PAYER 27
HEALTH EQUITY APPROACHES AND DEVELOPMENT (AHEAD) MODEL. 28
(D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 29
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 30
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 31
HOUSE BILL 352 47
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 1
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
(F) THE FUND CONSISTS OF : 3
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 4
(2) HOSPITAL PAYMENTS ADM INISTERED BY THE HEALTH SERVICES 5
REVIEW COMMISSION; AND 6
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTE D FOR 7
THE BENEFIT OF THE FUND. 8
(G) THE FUND MAY BE USED TO: 9
(1) IMPLEMENT A MEDICAID PRIMARY CARE ADVANCED PAYMENT 10
MODEL PROGRAM AS REQUIRED UNDER THE AHEAD COOPERATIVE AGREEMEN T; 11
AND 12
(2) SUPPORT PRIMARY CARE PROVIDERS SERVING EN ROLLEES OF 13
THE MEDICAL ASSISTANCE PROGRAM THROUGH INVES TMENTS THAT INCLUDE 14
INCREASED REIMBURSEM ENT FOR EVALUATION A ND MANAGEMENT CODES , CARE 15
MANAGEMENT FEES TO E LIGIBLE PRACTICES , AND QUALITY INCENTIV ES. 16
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 17
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 18
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 19
THE GENERAL FUND OF THE STATE. 20
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 21
WITH THE STATE BUDGET . 22
19–112. 23
(a) (1) In this section the following words have the meanings indicated. 24
(2) “Center” means a Patient Safety Center designated by the Commission. 25
(3) “Fund” means the Maryland Patient Safety Center Fund. 26
(d) (1) There is a Patient Safety Center Fund. 27
48 HOUSE BILL 352
(2) The purpose of the Fund is to subsidize a portion of the costs of the 1
Center so that the Center may perform the duties described under subsection (c) of this 2
section. 3
(e) (1) (I) For fiscal [year 2023 and each fiscal year thereafter] YEARS 4
2023 THROUGH 2025, the Governor shall include in the annual budget bill an 5
appropriation of $1,000,000 for the Fund. 6
(II) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 7
THEREAFTER , THE GOVERNOR MAY INCLUDE IN THE ANNUAL BUDGET BILL AN 8
APPROPRIATION OF $1,000,000 FOR THE FUND. 9
Article – Housing and Community Development 10
4–511. 11
(a) In this section, “Fund” means the Continuing the CORE Partnership Fund. 12
(b) There is a Continuing the CORE Partnership Fund. 13
(c) The purpose of the Fund is to assist the Department, in conjunction with the 14
Maryland Stadium Authority and Baltimore City, in expeditiously removing blighted 15
property within Baltimore City. 16
(j) (1) For fiscal year 2020, the Governor may include in the annual budget 17
bill an appropriation of $30,000,000 to the Fund. 18
(2) For fiscal years 2021 through 2024, the Governor may include in the 19
annual budget bill an appropriation of $25,000,000 to the Fund. 20
(3) For fiscal year 2026 and each fiscal year thereafter, the Governor shall 21
include in the annual budget bill OR THE CAPITAL BUDGE T BILL an appropriation of 22
$50,000,000 to the Fund. 23
Article – Human Services 24
10–1303. 25
(a) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include 26
in the annual budget bill an appropriation of [$2,400,000] $1,200,000 to manage the 27
long–term care and dementia care navigation programs statewide and to fund the programs 28
locally. 29
(b) The funds appropriated under this section shall be distributed proportionally 30
to each area agency based on a formula determined by the Department that considers the 31 HOUSE BILL 352 49
number of individuals who will likely need long–term care or dementia care services in each 1
jurisdiction. 2
Article – Labor and Employment 3
8–421. 4
(a) The Special Administrative Expense Fund shall consist of money appropriated 5
in the State budget from: 6
(1) fines, interest, and other penalties collected under this title and paid 7
from the clearing account under § 8–404(c) of this subtitle; 8
(2) money transferred from the Unemployment Insurance Administration 9
Fund under § 8–422 of this subtitle; [and] 10
(3) any voluntary contribution to the Special Administrative Expense 11
Fund; AND 12
(4) ADMINISTRATIVE FEE P AYMENTS DEPOSITED IN TO THE SPECIAL 13
ADMINISTRATIVE EXPENSE FUND IN ACCORDANCE WI TH § 8–605.1 OF THIS TITLE 14
AND ANY ASSOCIATED F INES, PENALTIES, AND INTEREST ESTABLI SHED BY 15
REGULATION . 16
(b) (1) Notwithstanding any other provision in this Part III of this subtitle, the 17
Special Administrative Expense Fund may be used as a revolving account to cover costs 18
that are proper under the law for which federal money is requested but not yet received, if 19
the costs are charged against the federal money when received. 20
(2) Subject to subsection (d) of this section, the Secretary: 21
(i) shall use the Special Administrative Expense Fund for 22
reimbursement of interest on contributions that is collected erroneously; 23
(ii) shall use the Special Administrative Expense Fund to pay for 24
costs of administration that are found to have been improperly charged against federal 25
money credited to the Unemployment Insurance Administration Fund; and 26
(iii) may use the Special Administrative Expense Fund: 27
1. for replacement within a reasonable time of any money 28
that the State receives under § 302 of the Social Security Act and that because of an action 29
or contingency has been lost or has been used for purposes other than or in amounts 30
exceeding those necessary for proper administration of this title; [or] 31
50 HOUSE BILL 352
2. for administrative expenses of the Division of 1
Unemployment Insurance and Division of Workforce Development AND ADULT 2
LEARNING, in accordance with subsection (c) of this section; AND 3
3. TO COLLECT AND ADMIN ISTER THE ADMINISTRA TIVE 4
FEE ESTABLISHED UNDE R § 8–605.1 OF THIS TITLE. 5
(c) (1) Subject to subsection (d) of this section, the Secretary may use the 6
Special Administrative Expense Fund for administrative expenses necessary to administer 7
this title. 8
(2) Administrative expenses include: 9
(i) expenses related to the acquisition of office space required for 10
effective administration of this title, subject to approval by the Board of Public Works; 11
(ii) costs for furnishing, maintenance, repair, improvement, and 12
enhancement of office space; 13
(iii) the purchase, leasing, and maintenance of information 14
technology systems, including equipment, programs, and services; 15
(iv) the purchase, leasing, and maintenance of telecommunications 16
systems, services, and equipment including connectivity costs and ongoing usage costs; and 17
(v) other administrative costs that the Secretary determines are 18
necessary to administer solely the provisions of this title. 19
(d) (1) The Special Administrative Expense Fund may not be used in a manner 20
that would result in a loss of federal money that, in the absence of money from the Special 21
Administrative Expense Fund, would be available to pay for administrative costs of this 22
title. 23
(2) THE SECRETARY SHALL IMPLEMENT COST ALLOCATION PLAN S AS 24
NECESSARY UNDER THIS PART III OF THIS SUBTITLE TO COMPLY WITH ALL 25
APPLICABLE STATE AND FEDERAL LAW . 26
8–605.1. 27
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 28
INDICATED. 29
(2) “NEW EMPLOYER ” HAS THE MEANING STAT ED IN § 8–609(A) OF 30
THIS SUBTITLE. 31
HOUSE BILL 352 51
(3) “TAXABLE WAGE BASE ” HAS THE MEANING STAT ED IN § 8–601 OF 1
THIS SUBTITLE. 2
(B) (1) (I) BEGINNING JANUARY 1, 2026, EACH EMPLOYING UNIT 3
THAT IS DETERMINED T O BE LIABLE UNDER TH IS SUBTITLE TO PAY C ONTRIBUTIONS 4
SHALL BE SUBJECT TO AN ANNUAL ADMINISTRA TIVE FEE OF 0.15% OF ITS TAXABLE 5
WAGE BASE. 6
(II) THE TIMING AND MANNER OF PAYMENT SHALL BE AS 7
DETERMINED BY THE SECRETARY. 8
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 9
BEGINNING JANUARY 1, 2026, THE CONTRIBUTION RAT E ASSIGNED TO EACH 10
EMPLOYING UNIT UNDER THIS SUBTITLE, EXCLUSIVE OF ANY PEN ALTIES, FINES, OR 11
INTEREST REQUIRED TO BE PAID BY AN EMPLOY ING UNIT UNDER ANY OTHER 12
PROVISION OF THIS TI TLE, SHALL BE ADJUSTED BY SUBTRACTING 0.15% FROM 13
EACH RATE. 14
(II) A NEW EMPLOYER SHALL P AY AT LEAST 1% OF ITS TAXABLE 15
WAGE BASE. 16
(C) THE ADMINISTRATIVE FE E PAYMENTS COLLECTED UNDER THIS 17
SECTION: 18
(1) SHALL BE CONSIDERED SEPARATE AND DISTINC T FROM 19
CONTRIBUTIONS ; 20
(2) MAY NOT BE CREDITED TO THE ACCOUNTS OF INDIV IDUAL 21
EMPLOYING UNITS ; AND 22
(3) SHALL BE DEPOSITED I NTO THE SPECIAL ADMINISTRATIVE 23
EXPENSE FUND ESTABLISHED UNDE R § 8–419 OF THIS TITLE. 24
(D) THE ADMINISTRATIVE FE ES COLLECTED UNDER T HIS SECTION MAY BE 25
USED FOR ADMINISTRATIVE EXPENSES IN ACCORDAN CE WITH § 8–421 OF THIS 26
TITLE, INCLUDING EXPENSES T O IMPROVE CUSTOMER S ERVICE, CONDUCT DATA 27
ANALYSIS, SUPPORT INFORMATION TECHNOLOGY IMPROVEME NTS, COMBAT FR AUD, 28
AND ACCELERATE REEMP LOYMENT. 29
(E) THE SECRETARY MAY ADOPT R EGULATIONS NECE SSARY TO CARRY OUT 30
THIS SECTION. 31
8–609. 32
52 HOUSE BILL 352
(a) (1) In this section the following terms have the meanings indicated. 1
(3) “New employer” means an employing unit that does not qualify for an 2
earned rate under § 8–610 of this subtitle. 3
(b) [A] SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , A new employer shall 4
pay contributions at a rate that does not exceed 2.6% of the taxable wage base, and that is 5
the highest of: 6
(1) 1% of the taxable wage base; 7
(2) the 5–year benefit cost rate of the State as computed under subsection 8
(c) of this section; or 9
(3) the contribution rate under § 8–612 of this subtitle that applies to an 10
employing unit with a benefit ratio of 0.000. 11
8–612. 12
(a) (1) Subject to paragraph (2) of this subsection, on the basis of the earned 13
rating record of an employing unit that qualifies for an earned rate of contribution under § 14
8–610 of this subtitle, the Secretary shall compute to the 4th decimal place a benefit ratio 15
for the employing unit in accordance with subsection (b) or (c) of this section. 16
(2) [The] SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , THE Secretary 17
may not assign an earned rate of contribution that is less than 0.3% or more than 13.5%. 18
8–613. 19
(a) (1) In this section the following terms have the meanings indicated. 20
(3) “Reorganized employer” means: 21
(i) an employer that alters its legal status, including changing from 22
a sole proprietorship or a partnership to a corporation; or 23
(ii) an employer that otherwise changes its trade name or business 24
identity while remaining under any of the same ownership. 25
(4) “Successor employer” means an employer that acquires, by sale or 26
otherwise, all or part of the assets, business, organization, or trade of another employer. 27
(b) (1) A reorganized employer shall be liable for all contributions, interest, 28
[and] penalties, AND ADMINISTRATIVE F EES owed by the employing unit before the 29
reorganization. 30
HOUSE BILL 352 53
(2) [A] SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , A reorganized 1
employer shall continue to pay contributions at the contribution rate of the employing unit 2
before the reorganization from the date of the reorganization through the next December 3
31. 4
(3) Beginning on the January 1 after the reorganization, the rate of 5
contribution of the reorganized employer shall be based on its experience with payrolls and 6
benefit charges, in combination with the experience with payrolls and benefit charges of 7
the employing unit before the reorganization. 8
(d) If a successor employer was an employing unit before acquiring the assets, 9
business, organization, or trade of a predecessor employer that is an employing unit, and 10
has no common ownership, management, or control with the predecessor employer: 11
(1) SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , the successor 12
employer shall continue to pay contributions at the previously assigned rate from the date 13
of the transfer through the next December 31; 14
(2) beginning on the January 1 after the transfer, and for each calendar 15
year thereafter, the rate of contribution of the successor employer shall be based on its 16
experience with payrolls and benefit charges in combination with the proportionate share 17
of payrolls and benefit charges acquired from the predecessor employer; and 18
(3) if two or more successor employers receive the transfer, beginning on 19
the January 1 after the transfer, and for each calendar year thereafter, the rate of 20
contribution of each successor employer shall be based on its experience with payrolls and 21
benefit charges in combination with the proportionate share of payrolls and benefit charges 22
acquired from the predecessor employer. 23
(f) If a predecessor employer does not remain in business after the transfer of all 24
or part of the assets, business, organization, or trade of the predecessor employer: 25
(1) the successor employer is liable for all contributions, interest, [and] 26
penalties, AND ADMINISTRATIVE F EES owed by the predecessor employer at the time of 27
the transfer; and 28
(2) if two or more successor employers receive the transfer, the successor 29
employers shall be liable in the same proportion as the payroll record of the unit being 30
transferred is to the total business of the predecessor employer. 31
(g) (1) [A] SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , A predecessor 32
employer shall continue to pay contributions at the previously assigned rate through the 33
next December 31 if the predecessor employer: 34
(i) transfers only part of the assets, business, organization, or trade 35
of the predecessor employer; 36
54 HOUSE BILL 352
(ii) remains in business; and 1
(iii) has been assigned a contribution rate under this subtitle. 2
(2) [If] SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , IF a predecessor 3
employer has met each of the requirements to continue to pay contributions at the 4
previously assigned rate through the December 31 after the transfer, beginning on the 5
January 1 after the transfer the rate of contributions of the predecessor employer for each 6
calendar year shall be based on: 7
(i) its experience with payrolls and benefit charges; and 8
(ii) its experience incurred before the transfer less any experience 9
that was transferred to a successor employer. 10
11–606. 11
(b) (1) There is a Maryland New Start Grant Program in the Department. 12
(2) The Department shall administer the Program. 13
(c) The purpose of the Program is to provide grants to organizations to create or 14
support existing entrepreneurship development programs to provide assistance to covered 15
individuals. 16
(f) (1) (I) In [each of fiscal years 2024, 2025, 2026, 2027, and 2028] FISCAL 17
YEARS 2024 AND 2025, the Governor shall include in the annual budget bill an 18
appropriation of at least $200,000 for the Program. 19
(II) IN FISCAL YEARS 2026 THROUGH 2028, THE GOVERNOR 20
SHALL INCLUDE IN THE ANNUAL BUDGET BILL A N APPROPRIATION OF A T LEAST 21
$50,000 FOR THE PROGRAM. 22
(2) The Department may not utilize more than 10% of the money 23
appropriated for the Program for administrative costs. 24
11–1302. 25
(a) There is a Construction Education and Innovation Fund. 26
(e) (1) For fiscal year 2018 through fiscal year 2024, the Governor shall 27
include in the annual budget bill an appropriation to the Fund of $250,000 to support the 28
operation of the Center. 29
HOUSE BILL 352 55
(2) For fiscal year 2025 through fiscal year 2029, the Governor shall 1
include in the annual budget bill an appropriation to the Fund of [$625,000] $531,250 to 2
support the operation of the Center. 3
(f) The Fund may be used only to support the purposes of the Center. 4
11–1501. 5
(a) In this subtitle the following words have the meanings indicated. 6
(f) “Program” means the Career Pathways for Health Care Workers Program. 7
11–1506. 8
(a) (1) [For each] THROUGH fiscal year 2025, the Governor shall include in 9
the annual budget bill an appropriation of at least $1,000,000 for the Program. 10
(2) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR THEREAFTER , 11
THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION 12
OF AT LEAST $500,000 FOR THE PROGRAM. 13
(b) Appropriations and expenditures made for the purpose of implementing the 14
Program, including the use of any funds received by a person under any component of the 15
Program, are subject to audit by the Office of Legislative Audits as provided in § 2–1220 of 16
the State Government Article. 17
Article – Local Government 18
16–503. 19
(A) The Governor shall include in the budget bill for [each] fiscal year 2025 a 20
General Fund appropriation for the following teacher retirement supplemental grants to 21
the following counties: 22
(1) Allegany County – $1,632,106; 23
(2) Baltimore City – $10,047,596; 24
(3) Baltimore County – $3,000,000; 25
(4) Caroline County – $685,108; 26
(5) Dorchester County – $308,913; 27
(6) Garrett County – $406,400; 28
56 HOUSE BILL 352
(7) Prince George’s County – $9,628,702; 1
(8) Somerset County – $381,999; and 2
(9) Wicomico County – $1,567,837. 3
(B) FOR FISCAL YEAR 2026, THE GOVERNOR SHALL INCLUD E IN THE 4
BUDGET BILL A GENERAL FUND APPROPRIATION FO R THE FOLLOWING TEAC HER 5
RETIREMENT SUPPLEMEN TAL GRANTS TO THE FO LLOWING COUNTIES : 6
(1) ALLEGANY COUNTY – $816,053; 7
(2) BALTIMORE CITY – $5,023,798; 8
(3) BALTIMORE COUNTY – $1,500,000; 9
(4) CAROLINE COUNTY – $342,554; 10
(5) DORCHESTER COUNTY – $154,457; 11
(6) GARRETT COUNTY – $203,200; 12
(7) PRINCE GEORGE’S COUNTY – $4,814,351; 13
(8) SOMERSET COUNTY – $191,000; AND 14
(9) WICOMICO COUNTY – $783,919. 15
Article – Natural Resources 16
3–103. 17
(a) (1) There is a body politic and corporate known as the “Maryland 18
Environmental Service”. 19
(h) (1) The Service: 20
(i) May create and establish 1 or more project reserve funds in such 21
amounts as the Board considers appropriate, including the following project reserve funds: 22
1. An Eastern Correctional Institution Turbine Project 23
Contingency Fund; 24
2. A Department of Natural Resources Project Contingency 25
Fund; and 26 HOUSE BILL 352 57
3. A Reimbursable Project Contingency Fund; and 1
(ii) Subject to paragraph (2) of this subsection, may pay into such 2
funds: 3
1. Any money appropriated and made available by the State 4
for the purposes of such funds; 5
2. Any proceeds from the sale of bonds or notes, to the extent 6
provided in the resolution authorizing the issuance of the bonds or notes; 7
3. Revenues derived from a project of the Service; and 8
4. Any other money that may be received by or otherwise 9
made available to the Service from any other source or sources which the Service has 10
designated for deposit into such funds. 11
(2) Money held in or credited to a project reserve fund established under 12
this subsection shall be used solely to accomplish the purposes of this subtitle, as 13
determined by the Board and, subject to paragraph (3) of this subsection, may be retained 14
by the Service in the appropriate project reserve fund based on the project for which the 15
money was received by the Service. 16
(3) (i) The Service may credit to a project reserve fund established 17
under paragraph (1)(i)1 through 3 of this subsection only money that is reimbursable to the 18
State. 19
(ii) The Service may not retain more than: 20
1. [$1,500,000] $5,000,000 in the Eastern Correctional 21
Institution Turbine Project Contingency Fund; 22
2. $500,000 in the Department of Natural Resources Project 23
Contingency Fund; or 24
3. [$1,000,000] $3,000,000 in the Reimbursable Project 25
Contingency Fund. 26
(iii) If at the end of a fiscal year the balance in a project reserve fund 27
exceeds the limits stated in subparagraph (ii) of this paragraph, the Service shall revert 28
the excess to the State fund from which the money in the project reserve fund was originally 29
appropriated. 30
(4) Money appropriated or made available to the Service by the State shall 31
be expended in accordance with the provisions of this subtitle. 32
58 HOUSE BILL 352
5–2001. 1
(a) In this section, “Fund” means the Maryland Forestry Education Fund. 2
(b) There is a Maryland Forestry Education Fund. 3
(c) The purpose of the Fund is to expand and enhance: 4
(1) The Maryland Forestry Foundation’s capacity to provide education and 5
resources that support Maryland’s forest landowners; 6
(2) The ability of district forestry boards and the knowledge of local 7
governments in Maryland to achieve: 8
(i) Environmental, economic, and social sustainability of forest 9
health; and 10
(ii) The sustainable management of forest resources; and 11
(3) The ability of businesses to test innovative best management practices 12
in forestry. 13
(k) For fiscal [years] YEAR 2025 [and 2026], the Governor shall include in the 14
annual budget bill an appropriation of $250,000 to the Fund. 15
8–2A–02. 16
(a) There is a Chesapeake and Atlantic Coastal Bays 2010 Trust Fund. 17
(b) The purpose of the Trust Fund is to provide financial assistance necessary to 18
advance Maryland’s progress in meeting the goals established in the 2014 Chesapeake Bay 19
Watershed Agreement for the restoration of the Chesapeake Bay and its tributaries, 20
including the Patuxent River, and to restore the health of the Atlantic Coastal Bays and 21
their tributaries, by focusing limited financial resources on nonpoint source pollution 22
control projects in all regions of the State. 23
(f) (1) The Trust Fund may be used only for the implementation of nonpoint 24
source pollution control projects to: 25
(i) Support State and local watershed implementation plans by 26
targeting limited financial resources on the most effective nonpoint source pollution control 27
projects; and 28
(ii) Improve the health of the Atlantic Coastal Bays and their 29
tributaries. 30
HOUSE BILL 352 59
(2) It is the intent of the General Assembly that, when possible, money in 1
the Trust Fund shall be granted to local governments and other political subdivisions for 2
agricultural, forestry, stream and wetland restoration, and urban and suburban 3
stormwater nonpoint source pollution control projects, including up to 25% in matching 4
funds to local governments and other political subdivisions that have enacted a stormwater 5
remediation fee under § 4–202.1 of the Environment Article. 6
(3) (i) In each fiscal year from 2023 through 2031, inclusive, $1,250,000 7
from the Trust Fund shall be used to fund: 8
1. The 5 Million Tree Program Coordinator position in the 9
Department of the Environment; and 10
2. Subject to subparagraph (ii) of this paragraph, 13 11
contractor positions in the Forest Service of the Department to provide technical assistance, 12
planning, and coordination related to tree plantings, tree buffer management, and forest 13
management, including invasive vine removal, on public, private, and agricultural lands 14
and in “underserved areas” as defined in § 8–1911 of this article. 15
(ii) The Department shall make reasonable efforts to ensure that 16
contractors hired under subparagraph (i)2 of this paragraph reflect the geographic and 17
demographic diversity of the State. 18
(4) (i) In each fiscal year from 2024 through 2031, inclusive, $2,500,000 19
from the Trust Fund shall be used, subject to the requirements of subparagraph (ii) of this 20
paragraph, for tree plantings on public and private land. 21
(ii) The money appropriated under this paragraph: 22
1. May be distributed in accordance with § 8–2A–04(c)(2) of 23
this subtitle; 24
2. May be used to cover the costs of: 25
A. Site preparation, labor, and materials for tree–planting 26
projects; 27
B. Maintaining trees following a tree–planting project; and 28
C. Landowner incentive payments or signing bonuses of up 29
to $1,000 per acre of trees planted; 30
3. May not be used to plant trees intended for timber harvest; 31
and 32
60 HOUSE BILL 352
4. May be used only for tree plantings on private land if the 1
landowner enters into a binding legal agreement to maintain the planted area in tree cover 2
for at least 15 years. 3
(iii) Money appropriated under this paragraph is supplemental to 4
and may not take the place of funding that otherwise would be appropriated for tree 5
plantings on public and private land. 6
(5) In each fiscal year from 2026 through 2030, inclusive, up to $100,000 7
from the Trust Fund shall be used to fund the operations grants under § 8–2B–02(g)(3) of 8
this title at a rate of $20,000 per project sponsor each fiscal year. 9
(6) NOTWITHSTANDING ANY O THER PROVISION OF LA W, THE 10
GOVERNOR MAY INCLUDE IN THE ANNUAL BUDGET BILL AN APPROPRIATIO N OF UP 11
TO $10,500,000 FROM THE TRUST FUND TO SUPPORT OPERA TING EXPENSES OF THE 12
DEPARTMENT . 13
8–709. 14
(a) The Department shall include in its annual budget request an itemized list of 15
requests for the use of any available money from the Waterway Improvement Fund for the 16
projects under § 8–707 of this subtitle. The Department’s list shall include a brief 17
description of each project, an estimate of its cost, and the benefits to be derived from it. 18
The list shall designate which projects are financed solely by the Waterway Improvement 19
Fund, which are matching fund projects, and which are interest–free loan projects. 20
(b) Notwithstanding the provisions of subsection (a) of this section, in any fiscal 21
year the Department may expend from the Waterway Improvement Fund without 22
legislative approval a total sum of not more than $225,000. Of this amount, a sum of not 23
more than $125,000 may be expended for small projects under § 8–707(a)(3) and (4) of this 24
subtitle, subject to the limitation that a single project of this kind may not exceed $5,000 in 25
cost to the Waterway Improvement Fund, and a sum of not more than $100,000 may be 26
expended for boating safety and education. 27
(c) Notwithstanding the provisions of subsection (a) of this section, the 28
Department may propose an appropriation from the Waterway Improvement Fund to 29
support marine operations of the Natural Resources Police not exceeding: 30
(1) $1,700,000 in the Department’s fiscal year 2006 budget; [and] 31
(2) $2,000,000 in the Department’s fiscal year 2007 [budget, and every year 32
thereafter] THROUGH FISCAL YEAR 2025 BUDGETS; AND 33
(3) $2,100,000 IN THE DEPARTMENT ’S FISCAL YEAR 2026 BUDGET, 34
AND EVERY YEAR THERE AFTER. 35
HOUSE BILL 352 61
Article – Public Safety 1
4–1011. 2
(a) In this section, “local law enforcement agency” means: 3
(1) a police department of a county or municipal corporation in the State; 4
or 5
(2) the office of the sheriff that provides a law enforcement function in a 6
county or municipal corporation in the State. 7
(b) (1) For fiscal [years 2024 through 2026, each year] 2024, the Governor 8
shall include in the annual budget bill an appropriation of $2,000,000 for local law 9
enforcement agencies to be used as grants for warrant apprehension efforts. 10
(2) FOR FISCAL YEARS 2025 AND 2026, THE GOVERNOR SHALL 11
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $1,000,000 FOR 12
LOCAL LAW ENFORCEMEN T AGENCIES TO BE USE D AS GRANTS TO WARRANT 13
APPREHENSION EFFORTS . 14
(c) (1) The Governor’s Office of Crime Prevention and Policy shall administer 15
the grant funds in accordance with § 4–1008 of this subtitle. 16
(2) Local law enforcement agencies may use the grant funds for the 17
following purposes: 18
(i) to reduce warrants in the agency’s jurisdiction; 19
(ii) to increase coordination and cooperation between local law 20
enforcement and State and federal agencies regarding outstanding warrants; and 21
(iii) to reduce the number of outstanding warrants related to violent 22
crimes. 23
Article – Real Property 24
8–1006. 25
For each of fiscal years 2026 through 2028, the Governor [shall] MAY include in the 26
annual budget bill an appropriation of: 27
(1) $100,000 to the designated organization for Montgomery County to be 28
used for the Pilot Program; and 29
62 HOUSE BILL 352
(2) $100,000 to the designated organization for Prince George’s County to 1
be used for the Pilot Program. 2
Article – State Finance and Procurement 3
3.5–309. 4
(a) There is an Information Technology Investment Fund. 5
(b) The purpose of the Fund is to support major information technology 6
development projects and expedited projects. 7
(j) Notwithstanding subsection (b) of this section and except for the cost incurred 8
in administering the Fund, each fiscal year up to $1,000,000 of this Fund may be used for: 9
(1) educationally related information technology projects; 10
(2) application service provider initiatives as provided for in Title 9, 11
Subtitle 22 of the State Government Article; or 12
(3) information technology projects, including: 13
(i) pilots; and 14
(ii) prototypes. 15
(k) A unit of State government or local government may submit a request to the 16
Secretary to support the cost of an information technology project with money under 17
subsection (j) of this section. 18
[(l) (1) Each fiscal year, at least 20% of the amount included in the Governor’s 19
allowance and appropriated to the Fund shall be set aside to be used for expedited projects. 20
(2) Any amount set aside under paragraph (1) of this subsection that is not 21
used in the fiscal year that it is set aside shall remain set aside in the Fund and available 22
to be used for future expedited projects.] 23
[(m)] (L) (1) Notwithstanding subsection (b) of this section and in accordance 24
with paragraph (2) of this subsection, money paid into the Fund under subsection (e)(2) of 25
this section shall be used to support: 26
(i) the State telecommunication and computer network established 27
under § 3.5–404 of this title, including program development for these activities; and 28
(ii) the Statewide Public Safety Interoperability Radio System, also 29
known as Maryland First (first responder interoperable radio system team), under Title 1, 30
Subtitle 5 of the Public Safety Article. 31 HOUSE BILL 352 63
(2) The Secretary may determine the portion of the money paid into the 1
Fund that shall be allocated to each program described in paragraph (1) of this subsection. 2
[(n)] (M) (1) On or before November 1 of each year, the Secretary shall report 3
to the Governor and the Secretary of Budget and Management and, in accordance with § 4
2–1257 of the State Government Article, to the Senate Budget and Taxation Committee, 5
the Senate Committee on Education, Energy, and the Environment, the House 6
Appropriations Committee, the House Health and Government Operations Committee, and 7
the Joint Committee on Cybersecurity, Information Technology, and Biotechnology. 8
(2) The report shall include: 9
(i) the financial status of the Fund and a summary of its operations 10
for the preceding fiscal year; 11
(ii) an accounting for the preceding fiscal year of all money from each 12
of the revenue sources specified in subsection (e) of this section, including any expenditures 13
made from the Fund; and 14
(iii) for each project receiving money from the Fund in the preceding 15
fiscal year and for each major information technology development project or expedited 16
project receiving funding from any source other than the Fund in the preceding fiscal year: 17
1. the status of the project and project funding decisions; 18
2. a comparison of estimated and actual costs of the project; 19
3. any known or anticipated changes in scope or costs of the 20
project; 21
4. an evaluation of whether the project is using best 22
practices; and 23
5. a summary of any monitoring and oversight of the project 24
from outside the agency in which the project is being developed, including a description of 25
any problems identified by any external review and any corrective actions taken. 26
[(o)] (N) On or before January 15 of each year, for each major information 27
technology development project or expedited project currently in development or for which 28
operations and maintenance funding is being provided in accordance with subsection (i)(3) 29
of this section, subject to § 2–1257 of the State Government Article, the Secretary shall 30
provide a summary report to the Department of Legislative Services with the most 31
up–to–date project information including: 32
(1) project funding decisions and project status; 33
64 HOUSE BILL 352
(2) any schedule, cost, and scope changes since the last annual report; 1
(3) a risk assessment including any problems identified by any internal or 2
external review and any corrective actions taken; and 3
(4) any change in the monitoring or oversight status. 4
[(p)] (O) (1) The Secretary may adopt regulations necessary to carry out this 5
section. 6
(2) The Secretary shall adopt regulations necessary to establish a process 7
for units of State government to request and receive funding for an expedited project 8
aligned with the State Modernization Plan that shall: 9
(i) allow units of State government to apply for project funding 10
biannually; 11
(ii) be consistent with the goals and preferences established under 12
Title 14 of this article and encourage small and minority business enterprise vendors; and 13
(iii) provide measures that ensure compliance with this subtitle and 14
the Department’s regulations by both vendors and units of State government. 15
6–104. 16
(e) (1) Beginning with the revenue estimate for fiscal year 2020, the Bureau 17
shall calculate the share of General Fund revenues represented by nonwithholding income 18
tax revenues in accordance with this subsection. 19
(2) (i) For each fiscal year, the Bureau shall calculate the 10–year 20
average share of General Fund revenues represented by nonwithholding income tax 21
revenues. 22
(ii) 1. For each fiscal year, the 10–year average shall use the 10 23
most recently completed fiscal years for which data are available when the estimate is 24
prepared in the September before the beginning of the fiscal year. 25
2. The same 10–year average shall be used in all subsequent 26
revisions to the revenue estimate for that fiscal year. 27
(3) (i) Subject to subparagraph (ii) of this paragraph, for each fiscal 28
year, if the Bureau’s estimate of the share of General Fund revenues from nonwithholding 29
income tax revenues is above the 10–year average share, the Bureau shall adjust the 30
revenue estimate by reducing General Fund revenues from nonwithholding income tax 31
revenues by an amount sufficient to align the estimated share of General Fund revenues 32
from nonwithholding income tax revenues with the 10–year average share of General Fund 33
revenues from nonwithholding income taxes. 34 HOUSE BILL 352 65
(ii) The adjustment made under subparagraph (i) of this paragraph 1
may not exceed the following percentage of total General Fund revenues or dollar value in 2
a specified fiscal year: 3
1. 0.225% for fiscal year 2020; 4
2. $0 for fiscal year 2021; 5
3. $80,000,000 for fiscal year 2022; 6
4. $100,000,000 for fiscal year 2023; 7
5. $0 for fiscal [year 2024] YEARS 2024 THROUGH 2029; 8
AND 9
6. [$0 for fiscal year 2025; and 10
7.] 2% for fiscal year [2026] 2030 and each fiscal year 11
thereafter. 12
(iii) The capped estimate calculated under this paragraph shall be 13
incorporated in the revenue estimate the Bureau shall report to the Board in the report 14
required under subsection (b)(2) of this section. 15
7–114.2. 16
When a proposed budget includes expenditure reductions to be applied across 17
multiple Executive Branch agencies, the budget bill [shall] MAY specify how the savings 18
will be achieved and with the exception of position abolitions and items requiring collective 19
bargaining [shall] MAY include a separate schedule for each reduction allocating the 20
reduction for each agency in a level of detail not less than the 3–digit R*Stars financial 21
agency code and by each fund type. 22
7–311. 23
(a) (1) In this section the following words have the meanings indicated. 24
(2) “Account” means the Revenue Stabilization Account. 25
(3) “Estimated General Fund revenues” means the estimated General 26
Fund revenues for a fiscal year stated in the report of the Board of Revenue Estimates 27
submitted to the Governor under § 6–106 of this article in December preceding the fiscal 28
year. 29
66 HOUSE BILL 352
(4) “Unappropriated General Fund surplus” does not include the amount 1
of nonwithholding income tax revenues that exceed the capped estimate determined under 2
§ 6–104(e) of this article. 3
(b) (1) The Revenue Stabilization Account is established to retain State 4
revenues for future needs and reduce the need for future tax increases by moderating 5
revenue growth. 6
(2) It is the goal of the State that 10% of estimated General Fund revenues 7
in each fiscal year be retained in the Account. 8
(e) (1) Except as provided in subsection (f) of this section, for each fiscal year, 9
EXCEPT FISCAL YEAR 2026: 10
(i) if the Account balance is below 3% of the estimated General Fund 11
revenues for that fiscal year, the Governor shall include in the budget bill an appropriation 12
to the Account equal to at least $100,000,000; and 13
(ii) if the Account balance is at least 3% but less than 7.5% of the 14
estimated General Fund revenues for that fiscal year, the Governor shall include in the 15
budget bill an appropriation to the Account equal to at least the lesser of $50,000,000 or 16
whatever amount is required for the Account balance to exceed 7.5% of the estimated 17
General Fund revenues for that fiscal year. 18
(2) At the end of fiscal year 2020 and each fiscal year thereafter, if the 19
amount of nonwithholding income tax revenues exceeds the capped estimate determined 20
under § 6–104(e) of this article, the State Comptroller shall distribute funds as provided in 21
§ 7–329(c) and (d) of this subtitle. 22
(f) (1) The appropriations required by subsection (e)(1) of this section are not 23
required when the Account balance exceeds 7.5% of the estimated General Fund revenues. 24
(2) The distributions required by subsection (e)(2) of this section are not 25
required when the Account balance exceeds 10% of the estimated General Fund revenues 26
for that fiscal year. 27
(j) (1) Except as provided in paragraph (2) of this subsection, for fiscal [year 28
2007 and for each subsequent fiscal year] YEARS 2007 THROUGH 2023, the Governor 29
shall include in the budget bill an appropriation: 30
(i) for fiscal year 2017, to the accumulation funds of the State 31
Retirement and Pension System an amount, up to a maximum of $50,000,000, that is equal 32
to one–half of the amount by which the unappropriated General Fund surplus as of June 33
30 of the second preceding fiscal year exceeds $10,000,000; 34
(ii) for fiscal year 2020: 35
HOUSE BILL 352 67
1. to the accumulation funds of the State Retirement and 1
Pension System an amount, up to a maximum of $50,000,000, that is equal to one–half of 2
the amount by which the unappropriated General Fund surplus as of June 30 of the second 3
preceding fiscal year exceeds $10,000,000; and 4
2. to the Account equal to the amount by which the 5
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 6
exceeds $10,000,000, less the amount of the appropriation under item 1 of this item; 7
(iii) for fiscal year 2021, to the Account in the amount of 8
$291,439,149; 9
(iv) except as provided in item (v) of this paragraph, for fiscal year 10
2022 and each fiscal year thereafter: 11
1. to the accumulation funds of the State Retirement and 12
Pension System an amount, up to a maximum of $25,000,000, that is equal to one–quarter 13
of the amount by which the unappropriated General Fund surplus as of June 30 of the 14
second preceding fiscal year exceeds $10,000,000; 15
2. to the Postretirement Health Benefits Trust Fund 16
established under § 34–101 of the State Personnel and Pensions Article an amount, up to 17
a maximum of $25,000,000, that is equal to one–quarter of the amount by which the 18
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 19
exceeds $10,000,000; and 20
3. to the Account equal to the amount by which the 21
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 22
exceeds $10,000,000, less the amount of the appropriations under items 1 and 2 of this item; 23
and 24
(v) for fiscal year 2024: 25
1. to the Maryland Equity Investment Fund established 26
under § 10–487 of the Economic Development Article an amount, up to $10,000,000, that 27
is equal to 10% of the amount by which the unappropriated General Fund surplus as of 28
June 30 of the second preceding fiscal year exceeds $10,000,000; 29
2. to the accumulation funds of the State Retirement and 30
Pension System an amount, up to a maximum of $15,000,000, that is equal to 15% of the 31
amount by which the unappropriated General Fund surplus as of June 30 of the second 32
preceding fiscal year exceeds $10,000,000; and 33
3. to the Postretirement Health Benefits Trust Fund 34
established under § 34–101 of the State Personnel and Pensions Article an amount, up to 35
a maximum of $25,000,000, that is equal to 25% of the amount by which the unappropriated 36
General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000. 37 68 HOUSE BILL 352
(2) The appropriation required under this subsection for any fiscal year 1
may be reduced by the amount of any appropriation to the Account required to be included 2
for that fiscal year under subsection (e) of this section. 3
7–325. 4
(a) (1) In this section the following words have the meanings indicated. 5
(2) “Council” means the Maryland State Arts Council. 6
(3) “General fund growth adjustment” means the percentage by which the 7
projected total General Fund revenues for the upcoming fiscal year exceed the revised 8
estimate of total General Fund revenues for the current fiscal year, as contained in the 9
report of estimated State revenues submitted by the Board of Revenue Estimates to the 10
Governor under § 6–106(b) of this article. 11
(b) (1) For fiscal years 2013 through 2024, the Governor shall include in the 12
annual budget bill a General Fund appropriation for the Council in an amount not less than 13
the amount of the General Fund appropriation for the Council for the immediately 14
preceding fiscal year increased by the general fund growth adjustment. 15
(2) For fiscal year 2025 [and each fiscal year thereafter], the Governor 16
shall include in the annual budget bill a General Fund appropriation for the Council in an 17
amount not less than the result of the following calculation: 18
(i) any funds distributed to the Council in the immediately 19
preceding fiscal year in accordance with § 2–202 of the Tax – General Article increased by 20
the general fund growth adjustment; plus 21
(ii) the amount of the General Fund appropriation for the Council 22
for the immediately preceding fiscal year increased by the general fund growth adjustment; 23
minus 24
(iii) the amount of funds distributed to the Council in the 25
immediately preceding fiscal year in accordance with § 2–202 of the Tax – General Article. 26
(c) The Legislative Auditor has the authority to conduct a review or audit of any 27
recipient of a grant from the Council. 28
Article – State Government 29
9–1A–27. 30
(d) (1) Each video lottery operation licensee shall retain [80%] 75% of the 31
proceeds of table games at the video lottery facility. 32
HOUSE BILL 352 69
(2) On a properly approved transmittal prepared by the Commission, the 1
Comptroller shall pay the following amounts from the proceeds of table games at each video 2
lottery facility: 3
(i) 5% to the local jurisdiction in which the video lottery facility is 4
located, provided that: 5
1. 50% of the proceeds paid to Baltimore City shall be used 6
to fund school construction projects; and 7
2. 50% of the proceeds paid to Baltimore City shall be used 8
to fund the maintenance, operation, and construction of recreational facilities; [and] 9
(II) 5% TO THE GENERAL FUND THROUGH FISCAL Y EAR 2027; 10
AND 11
[(ii)] (III) [15%] THE REMAINDER to the Education Trust Fund 12
established under § 9–1A–30 of this subtitle. 13
9–1E–12. 14
(b) (1) (i) Except as provided in subparagraphs (ii), (iii), and (iv) of this 15
paragraph, all proceeds from sports wagering shall be electronically transferred monthly 16
into the State Lottery Fund established under Subtitle 1 of this title. 17
(ii) A Class A–1 and A–2 sports wagering facility licensee shall 18
retain 85% of the proceeds from sports wagering conducted at the locations described in § 19
9–1E–09(a) of this subtitle. 20
(iii) A Class B–1 and B–2 sports wagering facility licensee shall 21
retain 85% of the proceeds from sports wagering conducted at the location described in the 22
licensee’s application. 23
(iv) A mobile sports wagering licensee shall retain [85%] 70% of the 24
proceeds from online sports wagering received by the licensee. 25
(2) (I) [All] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 26
PARAGRAPH , ALL proceeds from sports wagering in the State Lottery Fund established 27
under Subtitle 1 of this title shall be distributed on a monthly basis, on a properly approved 28
transmittal prepared by the Commission to the Blueprint for Maryland’s Future Fund 29
established under § 5–206 of the Education Article. 30
(II) THROUGH FISCAL YEAR 2027, 15% OF THE PROCEEDS 31
ATTRIBUTABLE TO MOBI LE SPORTS WAGERING S HALL BE DEPOSITED IN THE 32
GENERAL FUND. 33
70 HOUSE BILL 352
9–20B–05. 1
(a) There is a Maryland Strategic Energy Investment Fund. 2
(e) The Fund consists of: 3
(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 4
Environment Article; 5
(2) money appropriated in the State budget to the Program; 6
(3) repayments and prepayments of principal and interest on loans made 7
from the Fund; 8
(4) [interest and investment earnings on the Fund; 9
(5)] compliance fees paid under § 7–705 of the Public Utilities Article; 10
[(6)] (5) money received from any public or private source for the benefit 11
of the Fund; 12
[(7)] (6) money transferred from the Public Service Commission under § 13
7–207.2(c)(3) of the Public Utilities Article; and 14
[(8)] (7) money distributed under § 2–614.1 of the Tax – General Article. 15
(f) The Administration shall use the Fund: 16
(1) to invest in the promotion, development, and implementation of: 17
(i) cost–effective energy efficiency and conservation programs, 18
projects, or activities, including measurement and verification of energy savings; 19
(ii) renewable and clean energy resources; 20
(iii) climate change programs directly related to reducing or 21
mitigating the effects of climate change; and 22
(iv) demand response programs that are designed to promote 23
changes in electric usage by customers in response to: 24
1. changes in the price of electricity over time; or 25
2. incentives designed to induce lower electricity use at times 26
of high wholesale market prices or when system reliability is jeopardized; 27
HOUSE BILL 352 71
(2) to provide targeted programs, projects, activities, and investments to 1
reduce electricity consumption by customers in the low–income and moderate–income 2
residential sectors; 3
(3) to provide supplemental funds for low–income energy assistance 4
through the Electric Universal Service Program established under § 7–512.1 of the Public 5
Utilities Article and other electric assistance programs in the Department of Human 6
Services; 7
(4) to provide rate relief by offsetting electricity rates of residential 8
customers, including an offset of surcharges imposed on ratepayers under Title 7, Subtitle 9
2, Part II of the Public Utilities Article; 10
(5) to provide grants, loans, and other assistance and investment as 11
necessary and appropriate to implement the purposes of the Program as set forth in § 12
9–20B–03 of this subtitle; 13
(6) to implement energy–related public education and outreach initiatives 14
regarding reducing energy consumption and greenhouse gas emissions; 15
(7) to provide rebates under the Electric Vehicle Recharging Equipment 16
Rebate Program established under § 9–2009 of this title; 17
(8) to provide grants to encourage combined heat and power projects at 18
industrial facilities; 19
(9) to provide at least $1,200,000 in each fiscal year for fiscal year 2025 20
through fiscal year 2028 to the Climate Technology Founder’s Fund established under § 21
10–858 of the Economic Development Article; 22
(10) subject to subsection (f–2) of this section, to provide at least $2,100,000 23
in funding each fiscal year to the Maryland Energy Innovation Fund established under § 24
10–835 of the Economic Development Article; 25
(11) to provide at least $500,000 each year to the Resiliency Hub Grant 26
Program Fund under § 9–2011 of this title; 27
(12) to provide grants through the Customer–Sited Solar Program under § 28
9–2016 of this title; [and] 29
(13) NOTWITHSTANDING SUBSECTION (G) OF THIS SECTION , TO PAY 30
COSTS ASSOCIATED WIT H THE AIR AND RADIATION ADMINISTRATION WITHIN THE 31
DEPARTMENT OF THE ENVIRONMENT ; AND 32
[(13)] (14) to pay the expenses of the Program. 33
72 HOUSE BILL 352
(j) (1) The Treasurer shall invest the money of the Fund in the same manner 1
as other State money may be invested. 2
(2) Any investment earnings of the Fund shall be paid into the Fund. 3
(3) Any repayment of principal and interest on loans made from the Fund 4
shall be paid into the Fund. 5
(4) Balances in the Fund shall be held for the benefit of the Program, shall 6
be expended solely for the purposes of the Program, and may not be used for the general 7
obligations of government. 8
9–3209. 9
(a) There is a Performance Incentive Grant Fund. 10
(b) (1) The purpose of the Fund is to make use of the savings from the 11
implementation of the recommendations of the Justice Reinvestment Coordinating Council. 12
(2) Subject to paragraph (3) of this subsection, AND EXCEPT AS 13
PROVIDED IN PARAGRAP H (4) OF THIS SUBSECTION , the Board may recommend to the 14
Executive Director that grants be made to: 15
(i) ensure that the rights of crime victims are protected and 16
enhanced; 17
(ii) provide for pretrial risk assessments; 18
(iii) provide for services to reduce pretrial detention; 19
(iv) provide for diversion programs, including mediation and 20
restorative justice programs; 21
(v) provide for recidivism reduction programming; 22
(vi) provide for evidence–based practices and policies; 23
(vii) provide for specialty courts; 24
(viii) provide for reentry programs; 25
(ix) provide for substance use disorder and community mental health 26
service programs; and 27
(x) provide for any other program or service that will further the 28
purposes established in paragraph (1) of this subsection. 29
HOUSE BILL 352 73
(3) (i) At least 5% of the grants provided to a county under this section 1
shall be used to fund programs and services to ensure that the rights of crime victims are 2
protected and enhanced. 3
(ii) The grants shall be used to supplement, but not supplant, funds 4
received from other sources. 5
(4) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR THEREAFTER , UP 6
TO $1,000,000 OF THE FUND MAY BE USED EACH YEAR TO SUPPORT THE AGENCY 7
OPERATIONS OF THE OFFICE OF THE CORRECTIONAL OMBUDSMAN . 8
[(4)] (5) The Governor’s Office of Crime Prevention and Policy shall 9
receive from the Fund each fiscal year the amount necessary to offset the costs of 10
administering the Fund, including the costs incurred in an agreement to collect and 11
interpret data as authorized by § 9–3207 of this subtitle. 12
21–205. 13
(a) (1) There is a Young Adult Service Year Option Pathway in the Program. 14
(2) The purpose of the Young Adult Service Year Option Pathway is to: 15
(i) provide service placements to eligible young adults as an 16
additional option to immediately pursuing postsecondary education or career and technical 17
training; 18
(ii) equip corps participants with professional development, 19
mentoring, job training, financial literacy skills, and other supports while working in 20
high–impact service placements; 21
(iii) assist in addressing the State’s greatest challenges by 22
channeling the next generation of Maryland citizens into impactful public service; and 23
(iv) strengthen a pipeline of talent into State and local governments 24
to fill present and future staffing needs. 25
(c) (1) The Department shall set targets for participation in the YA Pathway 26
under this section, including: 27
(i) 200 corps participants in the first year of implementation; [and] 28
(II) 750 CORPS PARTICIPANTS I N THE THIRD YEAR OF 29
IMPLEMENTATION ; 30
(III) 1,500 CORPS PARTICIPANTS I N THE FOURTH YEAR OF 31
IMPLEMENTATION ; AND 32 74 HOUSE BILL 352
[(ii)] (IV) 2,000 corps participants in the [fourth] FIFTH year of 1
implementation. 2
(2) The Department shall prioritize for participation in the YA Pathway 3
under this section: 4
(i) individuals historically underrepresented in: 5
1. higher education enrollment or completion; or 6
2. employment: 7
A. by large–scale and community employers; 8
B. by participating organizations; or 9
C. in professions and occupations that require licensure or 10
certification; and 11
(ii) organizations that provide wraparound services to corps 12
participants. 13
21–206. 14
(a) (1) There is a Maryland Service Year Option Pathway in the Program. 15
(2) The purpose of the Maryland Service Year Option Pathway is to: 16
(i) equip corps participants with professional development, 17
mentoring, job training, financial literacy skills, and other supports while working in 18
high–impact service placements; 19
(ii) assist in addressing the State’s greatest challenges by 20
channeling the talents of individuals into impactful public service; and 21
(iii) strengthen a pipeline of talent into State and local governments 22
to fill present and future staffing needs. 23
(f) (1) The Governor shall include in the annual budget bill an appropriation 24
to the MSY Pathway Fund of: 25
(i) $5,000,000 for fiscal year 2024; 26
(ii) $10,000,000 for fiscal year 2025; 27
(iii) [$15,000,000] $13,000,000 for fiscal year 2026; and 28 HOUSE BILL 352 75
(iv) $20,000,000 for fiscal year 2027 and each fiscal year thereafter. 1
(2) It is the intent of the General Assembly that appropriations made under 2
paragraph (1) of this subsection are in addition to any federal funding received for State 3
service or volunteer programming. 4
(3) Appropriations made under paragraph (1) of this subsection and other 5
funding received by the Department for the MSY Pathway under this section shall be used 6
to: 7
(i) provide stipends to corps participants with a service placement 8
in the MSY Pathway under this section; 9
(ii) provide Program completion awards to corps participants who 10
have completed the Program; 11
(iii) cover expenses incurred by the Department, including expenses 12
incurred in marketing and recruitment; and 13
(iv) cover programmatic expenses to expand service opportunities 14
throughout the State, including expanding the Chesapeake Conservation Corps Program, 15
as provided under §§ 8–1913 through 8–1924 of the Natural Resources Article. 16
Article – State Personnel and Pensions 17
21–304. 18
(a) (1) In this section the following words have the meanings indicated. 19
(2) With respect to local employees, “aggregate annual earnable 20
compensation” means the total annual earnable compensation payable by a local employer 21
to all of its local employees, calculated as of June 30 of the second prior fiscal year before 22
the fiscal year for which the calculation is made under this section, adjusted by any 23
actuarial assumed salary increases that were used in the actuarial valuation prepared 24
under § 21–125(b) of this title for the immediate prior fiscal year. 25
(3) “Local employee” means a member of the Teachers’ Retirement System 26
or the Teachers’ Pension System who is an employee of a day school in the State under the 27
authority and supervision of a county board of education or the Baltimore City Board of 28
School Commissioners, employed as: 29
(i) a clerk; 30
(ii) a helping teacher; 31
(iii) a principal; 32 76 HOUSE BILL 352
(iv) a superintendent; 1
(v) a supervisor; or 2
(vi) a teacher. 3
(4) “Local employer” means a county board of education or the Baltimore 4
City Board of School Commissioners. 5
(5) “State member” does not include a member on whose behalf a 6
participating governmental unit is required to make an employer contribution under § 7
21–305 or § 21–306 of this subtitle. 8
(6) “Total employer contribution for local employees” means that portion of 9
the employer contribution calculated under subsection (b) of this section that is attributable 10
to all local employees. 11
(b) (1) Subject to paragraphs (4) and (5) of this subsection, each fiscal year, on 12
behalf of the State members of each State system, the State shall pay to the appropriate 13
accumulation fund an amount equal to or greater than the sum of the amount, if any, 14
required to be included in the budget bill under § 3–501(c)(2)(ii) of this article and the 15
product of multiplying: 16
(i) the aggregate annual earnable compensation of the State 17
members of that State system; and 18
(ii) the sum of the normal contribution rate and the accrued liability 19
contribution rate for State members of that State system, as determined under this section. 20
(4) (i) Subject to § 21–309.1 of this subtitle, beginning on July 1, 2012, 21
and each fiscal year thereafter, each local employer shall pay to the appropriate 22
accumulation fund an amount equal to the local share of the total employer contribution 23
for local employees as provided in this paragraph. 24
(iii) Beginning in fiscal year 2017, each local employer shall pay to 25
the Board of Trustees its local share equal to the normal contribution rate for the Teachers’ 26
Retirement System and the Teachers’ Pension System multiplied by the aggregate annual 27
earnable compensation of the local employees of that local employer. 28
(5) (I) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 29
PARAGRAPH , THE difference between the total employer contribution for local employees 30
and the local share of the total employer contribution for all local employees shall be the 31
obligation of the State. 32
HOUSE BILL 352 77
(II) BEGINNING IN FISCAL Y EAR 2026, EACH COUNTY 1
GOVERNMENT SHALL PAY TO THE BOARD OF TRUSTEES THE FOLLOWIN G AMOUNTS, 2
WHICH SHALL REDUCE T HE OBLIGATION OF THE STATE BY THE SAME AMO UNTS: 3
COUNTY 4
GOVERNMENT 5
ALLEGANY 754,195 6
ANNE ARUNDEL 9,738,875 7
BALTIMORE CITY 8,802,114 8
BALTIMORE 10,352,112 9
CALVERT 1,647,480 10
CAROLINE 561,645 11
CARROLL 2,624,055 12
CECIL 1,327,122 13
CHARLES 2,786,366 14
DORCHESTER 590,506 15
FREDERICK 5,925,608 16
GARRETT 269,208 17
HARFORD 3,685,077 18
HOWARD 6,830,167 19
KENT 165,489 20
MONTGOMERY 20,861,475 21
PRINCE GEORGE’S 13,000,062 22
QUEEN ANNE’S 691,279 23
ST. MARY’S 1,562,014 24
SOMERSET 314,066 25
TALBOT 452,957 26
WASHINGTON 2,397,889 27
WICOMICO 1,704,888 28
WORCESTER 699,872 29
21–308. 30
(a) (1) On or before December 1 of each year, the Board of Trustees shall: 31
(i) certify to the Governor and the Secretary of Budget and 32
Management the rates to be used to determine the amounts to be paid by the State to the 33
accumulation fund of each of the several systems during the next fiscal year, including a 34
separate certification of the normal contribution rate for the Teachers’ Retirement System 35
and the Teachers’ Pension System; and 36
(ii) provide to the Secretary of Budget and Management a statement 37
of the total amount to be paid by the State as determined under § 21–304 of this subtitle to 38 78 HOUSE BILL 352
the Teachers’ Retirement System and the Teachers’ Pension System expressed as a 1
percentage of the payroll of all members of those State systems. 2
(2) The Governor shall include in the budget bill: 3
(i) the total amount of the State’s contribution to each State system 4
as ascertained based on the rates certified by the Board of Trustees under paragraph (1) of 5
this subsection; 6
(ii) the additional amounts as ascertained under subsection (d) of 7
this section for the State’s payment to the professional and clerical employees of the 8
Department of Public Libraries of Montgomery County who are members of the Employees’ 9
Retirement System of Montgomery County and are excluded from membership in the 10
Teachers’ Retirement System or the Teachers’ Pension System; and 11
(iii) any additional amount required to be in the budget bill under § 12
3–501(c)(2)(ii) of this article. 13
(3) (i) For each of fiscal years 2016 through 2024, in addition to the 14
annual required contribution required under paragraph (2) of this subsection, the Governor 15
shall include in the budget bill a supplemental contribution of $75,000,000. 16
(ii) For fiscal year 2025 [and each fiscal year thereafter], in addition 17
to the annual required contribution required under paragraph (2) of this subsection, the 18
Governor shall include in the budget bill a supplemental contribution of $50,000,000 [until 19
the total actuarial value of assets for the several systems divided by the total actuarial 20
accrued liability for the several systems equals a funding ratio of 85%]. 21
Article – Tax – General 22
2–202. 23
(a) After making the distribution required under § 2–201 of this subtitle, within 24
20 days after the end of each quarter, the Comptroller shall distribute: 25
(1) except as provided in subsections (b) and (c) of this section, from the 26
revenue from the State admissions and amusement tax on electronic bingo and electronic 27
tip jars under § 4–102(e) of this article: 28
(i) for fiscal [year 2021 and each fiscal year thereafter] YEARS 2021 29
THROUGH 2025, the revenue attributable to a tax rate of 20% to the Maryland 30
E–Nnovation Initiative Fund under § 6–604 of the Economic Development Article; 31
(II) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 32
THEREAFTER , THE REVENUE ATTRIBUT ABLE TO A TAX RATE O F 20% AS FOLLOWS: 33
HOUSE BILL 352 79
1. $8,500,000 TO THE MARYLAND E–NNOVATION 1
INITIATIVE FUND UNDER § 6–604 OF THE ECONOMIC DEVELOPMENT ARTICLE; AND 2
2. THE REMAINDER TO THE GENERAL FUND OF THE 3
STATE; and 4
[(ii)] (III) for fiscal year 2021 and each fiscal year thereafter, the 5
revenue attributable to a tax rate of 5% as follows: 6
1. to the Maryland State Arts Council, as provided in § 4–512 7
of the Economic Development Article, $1,000,000 in each fiscal year; 8
2. to the Town of Chesapeake Beach, $300,000 in each fiscal 9
year; 10
3. to the Michael Erin Busch Sports Fund established under 11
§ 10–612.2 of the Economic Development Article, $500,000 in each fiscal year; and 12
4. the remainder to the Special Fund for Preservation of 13
Cultural Arts in Maryland, as provided in § 4–801 of the Economic Development Article; 14
and 15
(2) the remaining admissions and amusement tax revenue: 16
(i) to the Maryland Stadium Authority, county, or municipal 17
corporation that is the source of the revenue; or 18
(ii) if the Maryland Stadium Authority and also a county or 19
municipal corporation tax a reduced charge or free admission: 20
1. 80% of that revenue to the Authority; and 21
2. 20% to the county or municipal corporation. 22
2–606. 23
(a) After making the distributions required under §§ 2–604, 2–605, and 2–605.1 24
of this subtitle, from the remaining income tax revenue from individuals, the Comptroller 25
shall distribute to an unallocated individual revenue account the income tax revenue: 26
(1) with respect to which an income tax return is not filed; and 27
(2) that is attributable to: 28
(i) income tax withheld from salary, wages, or other compensation 29
for personal services under Title 10 of this article; or 30 80 HOUSE BILL 352
(ii) estimated income tax payments by individuals. 1
(b) (1) In June of each year, from current collections, the Comptroller shall 2
reserve an amount of unallocated revenue that the Comptroller estimates will be claimed 3
on returns and refunded to taxpayers within 3 years of the date the income tax return was 4
due to be filed, and distribute to each county, municipal corporation, and special taxing 5
district a pro rata share of the balance of the unallocated individual income tax revenue. 6
(2) The Comptroller shall adjust the amount distributed under paragraph 7
(1) of this subsection to a county, municipal corporation, or special taxing district to allow 8
for the proportionate part of tax claim payments for a prior calendar year made after a 9
distribution is made to the county, municipal corporation, or special taxing district for that 10
year. 11
(H) ON OR BEFORE JUNE 30, 2025, THE COMPTROLLER SHALL DIS TRIBUTE 12
$230,000,000 FROM THE LOCAL RESERVE ACCOUNT ESTABLISHED T O COMPLY 13
WITH THIS SECTION TO THE GENERAL FUND OF THE STATE. 14
[(h)] (I) In each of fiscal years 2026 through 2060, in addition to the amounts 15
distributed under subsection (b) of this section, the Comptroller shall distribute 16
$10,000,000 of the remaining income tax revenue from individuals to the Local Reserve 17
Account established to comply with this section to repay the $350,000,000 transfer to the 18
Education Trust Fund required under subsection (e) of this section. 19
[(i)] (J) For fiscal years 2024 through 2043, in addition to the amounts 20
distributed under subsections (b) and [(h)] (I) of this section, the Comptroller shall 21
distribute $10,000,000 of the remaining income tax revenue from individuals to the Local 22
Reserve Account established to comply with this section. 23
(K) FOR FISCAL YEARS 2029 THROUGH 2038, IN ADDITION TO THE 24
AMOUNTS D ISTRIBUTED UNDER SUB SECTIONS (B), (I), AND (J) OF THIS SECTION , 25
THE COMPTROLLER SHALL DIS TRIBUTE $23,000,000 OF THE REMAINING INC OME 26
TAX REVENUE FROM IND IVIDUALS TO THE LOCAL RESERVE ACCOUNT 27
ESTABLISHED TO COMPL Y WITH THIS SECTION TO REPAY THE $230,000,000 28
TRANSFER TO THE GENERAL FUND OF THE STATE REQUIRED UNDER SUBSECTION 29
(H) OF THIS SECTION. 30
Article – Transportation 31
2–103.1. 32
(m) (2) (iii) [1.] For the period beyond the budget request year, the 33
financial forecast: 34
HOUSE BILL 352 81
[A.] 1. Shall maximize the use of funds for the capital 1
program; AND 2
[B.] 2. Except as authorized by law, may not withhold or 3
reserve funds for capital transportation grants to counties or municipal corporations[; and 4
C. Except as provided in subsubparagraph 2 of this 5
subparagraph, shall increase the operating expenses, net of availability payments paid to 6
public–private partnership concessionaires, each year by at least the 5–year average 7
annual rate of change in the operating expenses of the Department, ending with the most 8
recently completed fiscal year. 9
2. The assumed rate of future operating budget growth 10
under subsubparagraph 1C of this subparagraph may not increase or decrease by more 11
than 0.5 percentage points from the growth rate assumed in the previous forecast]. 12
3–202. 13
(a) The Department from time to time may issue its bonds on behalf of this State 14
to finance the cost of any one or more or combination of transportation facilities. 15
(b) The bonds shall be known as “consolidated transportation bonds” and may be 16
issued in any amount as long as the aggregate outstanding and unpaid principal balance 17
of these bonds and bonds of prior issues does not exceed at any one time the sum of [$4.5 18
billion] $5,000,000,000. 19
(c) The preferred method of issuance of the Department’s consolidated 20
transportation bonds is by a public, competitive sale. 21
(d) The Department may issue its consolidated transportation bonds at a private, 22
negotiated sale provided that: 23
(1) The Secretary determines that extraordinary credit market conditions 24
exist that warrant the use of this method rather than a public, competitive sale; and 25
(2) The Secretary determines that the terms and conditions, including 26
price, interest rates, and payment dates, that can be achieved by a private negotiated sale 27
are more advantageous to the State. 28
(e) The maximum outstanding and unpaid principal balance of consolidated 29
transportation bonds and bonds of prior issues as of June 30 for the next fiscal year: 30
(1) Shall be established each year by the General Assembly in the State 31
budget; and 32
(2) May not exceed the limit established in subsection (b) of this section. 33 82 HOUSE BILL 352
3–601. 1
(d) If the Department intends to pledge any future federal aid from any source to 2
support repayment of bonds issued under this subtitle: 3
(1) The aggregate outstanding and unpaid principal amount of debt issued 4
under this subtitle or Title 4, Subtitle 3 of this article that is secured by a pledge of future 5
federal aid may not exceed $1,000,000,000 as of June 30 of any fiscal year, provided that 6
the proceeds may be used only for: 7
(i) Designing and constructing the Baltimore Red Line; 8
(ii) Procuring zero–emission buses consistent with § 7–406 of the 9
Transportation Article and constructing related infrastructure, including bus maintenance 10
facilities; 11
(iii) Developing and constructing the Southern Maryland Rapid 12
Transit Corridor; 13
(iv) Designing and constructing improvements to the Maryland 14
Route 2 and Route 4 corridor, including the Thomas Johnson Bridge; 15
(v) Designing and constructing improvements to the Maryland 16
Route 90 corridor; [or] 17
(vi) Designing and constructing improvements to the Interstate 81 18
corridor; OR 19
(VII) MAJOR REHABILITATION OF THE EXISTING LIG HT RAIL 20
SYSTEM, INCLUDING REPLACEMEN T LIGHT RAIL VEHICLE S AND RELATED STATIO N 21
AND MAINTENANCE FACI LITY IMPROVEMENTS ; 22
(2) The date of maturity may not be later than 15 years after the date of 23
issue; and 24
(3) No part of the tax levied under § 3–215 of this title may be repealed, 25
diminished, or applied to any other purpose until: 26
(i) The bonds issued under this subtitle and interest on them have 27
become due and fully paid; or 28
(ii) Adequate and complete provision for payment of the principal 29
and interest has been made. 30
7–406. 31 HOUSE BILL 352 83
(c) (1) Except as provided in paragraph (2) of this subsection, beginning in 1
fiscal year [2027] 2032, the Administration may not enter into a contract to purchase buses 2
for the Administration’s State transit bus fleet that are not zero–emission buses. 3
(2) If the Administration determines that a sufficient number of 4
zero–emission buses or necessary electric vehicle supply equipment that meets the 5
Administration’s performance and contractual requirements are not commercially 6
available in a particular year, the Administration may purchase an alternative–fuel bus 7
for that use, including hybrid buses, to ensure that an appropriate number of buses are 8
purchased each year to maintain the State transit bus fleet. 9
(3) The full cost of zero–emission and alternative–fuel buses purchased 10
under this subsection shall be paid from the Transportation Trust Fund OR BONDS 11
BACKED BY FUTURE FED ERAL AID CONSISTENT WITH THIS SECTION AND § 3–601 OF 12
THIS ARTICLE. 13
12–120. 14
(a) In this section, “miscellaneous fees” means all fees collected by the 15
Administration under this article other than: 16
(1) The vehicle titling tax; 17
(2) One–half of the certificate of title fee under § 13–802 of this article; and 18
(3) Vehicle registration fees under Part II of Title 13, Subtitle 9 of this 19
article. 20
(b) Except as provided in this section, the Administration may not alter the 21
miscellaneous fees that the Administration is authorized under this article to establish. 22
(c) (1) Subject to the limitations under subsection (d) of this section, before the 23
start of any fiscal year the Administration by regulation may alter, effective beginning in 24
the upcoming fiscal year, the levels of the miscellaneous fees that the Administration is 25
authorized under this article to establish. 26
(2) The Administration shall alter the levels of miscellaneous fees for the 27
upcoming fiscal year if the projected cost recovery under subsection (d) of this section 28
exceeds [100%] 115%. 29
(d) The Administration shall set the levels of miscellaneous fees so that the total 30
amount of projected revenues from all miscellaneous fees for the upcoming fiscal year is at 31
least [95 percent] 95% but does not exceed [100 percent] 115% of the sum of: 32
84 HOUSE BILL 352
(1) The operating budget of the Administration for that fiscal year as 1
approved by the General Assembly in the annual State budget; 2
(2) The average annual capital program of the Administration as reported 3
in the 6–year Consolidated Transportation Program described in § 2–103.1 of this article; 4
and 5
(3) The Administration’s portion of the cost for that fiscal year of the 6
Department’s data center operations, except for the cost of data center operations 7
attributable to other administrations’ activities. 8
(e) (1) The Administration may not alter miscellaneous fees more than once in 9
any fiscal year. 10
(2) The Administration need not reduce fees for the upcoming fiscal year if 11
legislative budget modifications cause the projected cost recovery percentage to exceed [100 12
percent] 115%. 13
(3) The level of a miscellaneous fee set by the Administration remains in 14
effect until again altered by the Administration as provided under this section. 15
13–809. 16
(a) (1) In this section the following words have the meanings indicated. 17
(2) “Fair market value” means: 18
(i) As to the sale of any new or used vehicle by a licensed dealer, the 19
total purchase price, as certified by the dealer; 20
(ii) Except as provided in item (iv) of this paragraph, as to a used 21
vehicle that is sold by any person other than a licensed dealer and that has a designated 22
model year that is 7 years old or older, the greater of: 23
1. The total purchase price; or 24
2. $640; 25
(iii) Except as provided in item (iv) of this paragraph, as to any other 26
used vehicle that is sold by any person other than a licensed dealer: 27
1. The total purchase price, if the total purchase price is less 28
than $500 below the retail value of the vehicle as shown in a national publication of used 29
car values adopted for use by the Department; or 30
HOUSE BILL 352 85
2. If the total purchase price is $500 or more below the retail 1
value of the vehicle as shown in a national publication of used car values adopted for use 2
by the Department: 3
A. The total purchase price, if verified to the satisfaction of 4
the Administration by a notarized bill of sale submitted in accordance with subsection (d)(2) 5
of this section; or 6
B. The valuation shown in the national publication of used 7
car values, if the Administration finds that the documentation submitted under subsection 8
(d)(2) of this section fails to verify the total purchase price; 9
(iv) As to a used trailer, a motor scooter, a moped, or an off–highway 10
recreational vehicle that is sold by any person other than a licensed dealer, the greater of: 11
1. The total purchase price; or 12
2. $320; and 13
(v) In any other case, the valuation shown in a national publication 14
of used car values adopted for use by the Department. 15
(3) (i) Subject to subparagraphs (ii) and (iii) of this paragraph, [“total 16
purchase] “PURCHASE price” means the price of a vehicle agreed on by the buyer and the 17
seller, including any dealer processing charge[, less an allowance for trade–in but with no 18
allowance for other nonmonetary consideration]. 19
(ii) As to a person trading in a nonleased vehicle to enter into a lease 20
for a period of more than 180 consecutive days, [“total purchase] “PURCHASE price” means 21
the retail value of the vehicle as certified by the dealer, including any dealer processing 22
charge[, less an allowance for the trade–in of the nonleased vehicle but with no allowance 23
for other nonmonetary consideration]. 24
(iii) As to a person trading in a leased vehicle to enter into another 25
lease for a period of more than 180 consecutive days with a different leasing company or to 26
purchase a vehicle, [“total purchase] “PURCHASE price” means the retail value of the 27
vehicle as certified by the dealer, including any dealer processing charge[, less an allowance 28
for the trade–in of the leased vehicle but with no allowance for other nonmonetary 29
consideration]. 30
(4) “TOTAL PURCHASE PRICE ” MEANS: 31
(I) IF THE PURCHASE PRICE EXCEEDS $15,000, THE PURCHASE 32
PRICE; OR 33
86 HOUSE BILL 352
(II) IF THE PURCHASE PRICE IS $15,000 OR LESS, THE 1
PURCHASE PRICE LESS AN ALLOWANCE FOR A T RADE–IN VEHICLE, BUT WITH NO 2
ALLOWANCE FOR OTHER NONMONETARY CONSIDERATI ON. 3
[(4)] (5) “Trailer” has the meaning stated in § 11–169 of this article. 4
(b) (1) Except as otherwise provided in this part, in addition to any other 5
charge required by the Maryland Vehicle Law, an excise tax is imposed: 6
(i) For each original and each subsequent certificate of title issued 7
in this State for a motor vehicle, a trailer, a semitrailer, a moped, a motor scooter, or an 8
off–highway recreational vehicle for which sales and use tax is not collected at the time of 9
purchase; and 10
(ii) Except as provided in paragraph (2) of this subsection, for each 11
motor vehicle, trailer, or semitrailer that is in interstate operation and registered under § 12
13–109(c) or (d) of this title without a certificate of title. 13
(d) Each applicant for a certificate of title or for registration under § 13–109(c) of 14
this title shall submit to the Administration: 15
(1) The information that the Administration considers necessary as to: 16
(i) The time of purchase of the vehicle; and 17
(ii) The purchase price and other information relating to the 18
determination of the fair market value of the vehicle which may include, but is not limited 19
to: 20
1. Canceled checks; 21
2. Money order receipts; 22
3. Loan documents; or 23
4. A written description of the vehicle’s condition; and 24
(2) If the excise tax is based on the total purchase price of the vehicle as 25
provided in subsection (a)(2)(iii)2A of this section, a notarized bill of sale that: 26
(i) Is designed by, and obtained from, the Administration; 27
(ii) Is signed by the buyer and the seller; and 28
(iii) Includes a statement explaining why the vehicle was sold at the 29
price stated in the bill of sale. 30
HOUSE BILL 352 87
13–901. 1
(a) Subject to subsection (b) of this section, the fees specified in this subtitle for 2
the registration of a classified vehicle or for any interchangeable registration shall be paid 3
to the Administration: 4
(1) Before issuance of the registration and any registration plates and 5
registration cards; and 6
(2) Except as otherwise expressly provided, during each registration year 7
before the issuance or renewal of the registration. 8
(b) (1) The Administration shall allow for payment of registration fees, as 9
specified in this subtitle, in installments throughout the registration period, as determined 10
by the Administration. 11
(2) THE ADMINISTRATION SHALL COLLECT A REASONABLE 12
INSTALLMENT FEE FOR UTILIZATION OF A PAY MENT PLAN AUTHORIZED IN 13
ACCORDANCE WITH PARAGRAPH (1) OF THIS SUBSECTION. 14
13–912. 15
(a) When registered with the Administration, every passenger car and station 16
wagon, except as otherwise provided in this part, is a Class A (passenger) vehicle. 17
(b) For each Class A (passenger) vehicle, the annual registration fee is: 18
(1) For a vehicle with a manufacturer’s shipping weight of 3,500 pounds or 19
less: 20
(i) On or after July 1, 2024, but before July 1, 2025, $70.50; and 21
(ii) On or after July 1, 2025, $80.50; 22
(2) For a vehicle with a manufacturer’s shipping weight of more than 3,500 23
pounds but not more than 3,700 pounds: 24
(i) On or after July 1, 2024, but before July 1, 2025, $80.50; and 25
(ii) On or after July 1, 2025, $85.50; and 26
(3) For a vehicle with a manufacturer’s shipping weight of more than 3,700 27
pounds: 28
(i) On or after July 1, 2024, but before July 1, 2025, $121.50; AND 29
88 HOUSE BILL 352
(ii) On or after July 1, 2025, [but before July 1, 2026, $126.50; and 1
(iii) On or after July 1, 2026,] $151.50. 2
13–916. 3
(a) When registered with the Administration, every single unit truck with two or 4
more axles is a Class E (truck) vehicle. 5
(b) (1) For each Class E (truck) vehicle, the annual registration fee is based on 6
the maximum gross weight of the vehicle or combination of vehicles, as follows: 7
Maximum Gross Weight Fee (per 1,000 Pounds 8
Limit (in Pounds) or Fraction Thereof) 9
10,000 (minimum) – 18,000 $9.00 10
18,001 – 26,000 11.75 11
26,001 – 40,000 12.75 12
40,001 – 60,000 14.75 13
60,001 – 80,000 (maximum) 16.00 14
(2) (i) On or after July 1, 2024, but before July 1, 2025, the annual 15
registration fee under paragraph (1) of this subsection is increased by an additional $45.00. 16
(ii) On or after July 1, 2025, [but before July 1, 2026, the annual 17
registration fee under paragraph (1) of this subsection is increased by an additional $50.00. 18
(iii) On or after July 1, 2026,] the annual registration fee under 19
paragraph (1) of this subsection is increased by an additional $75.00. 20
13–917. 21
Notwithstanding § 13–916(b) of this subtitle, for any Class E (truck) vehicle with a 22
manufacturer’s rated capacity of 3/4 ton or less and a maximum gross vehicle weight of 23
7,000 pounds or less, the annual registration fee is: 24
(1) For a vehicle with a maximum gross vehicle weight of 3,500 pounds or 25
less: 26
(i) On or after July 1, 2024, but before July 1, 2025, $83.75; and 27
(ii) On or after July 1, 2025, $93.75; 28
(2) Except as provided in item (4) of this section, for a vehicle with a 29
maximum gross vehicle weight of more than 3,500 pounds but not more than 5,000 pounds: 30
(i) On or after July 1, 2024, but before July 1, 2025, $93.75; and 31
HOUSE BILL 352 89
(ii) On or after July 1, 2025, $98.75; 1
(3) Except as provided in item (4) of this section, for a vehicle with a 2
maximum gross vehicle weight of more than 5,000 pounds: 3
(i) On or after July 1, 2024, but before July 1, 2025, $108.75; AND 4
(ii) On or after July 1, 2025, [but before July 1, 2026, $113.75; and 5
(iii) On or after July 1, 2026,] $138.75; and 6
(4) For a vehicle, regardless of the vehicle’s maximum gross vehicle weight, 7
for which the owner certifies on the registration application that the vehicle for which the 8
application is made will be used for construction activities: 9
(i) On or after July 1, 2024, but before July 1, 2025, $83.75; and 10
(ii) On or after July 1, 2025, $93.75. 11
13–937. 12
(a) When registered with the Administration, every multipurpose passenger 13
vehicle is a Class M (multipurpose) vehicle. 14
(b) For each Class M (multipurpose) vehicle, the annual registration fee is: 15
(1) For a vehicle with a manufacturer’s shipping weight of 3,500 pounds or 16
less: 17
(i) On or after July 1, 2024, but before July 1, 2025, $70.50; and 18
(ii) On or after July 1, 2025, $80.50; 19
(2) For a vehicle with a manufacturer’s shipping weight of more than 3,500 20
pounds but not more than 3,700 pounds: 21
(i) On or after July 1, 2024, but before July 1, 2025, $80.50; and 22
(ii) On or after July 1, 2025, $85.50; and 23
(3) For a vehicle with a manufacturer’s shipping weight of more than 3,700 24
pounds: 25
(i) On or after July 1, 2024, but before July 1, 2025, $121.50; AND 26
(ii) On or after July 1, 2025, [but before July 1, 2026, $126.50; and 27
90 HOUSE BILL 352
(iii) On or after July 1, 2026,] $151.50. 1
(c) The Administration may by rule and regulation provide for the registration 2
under this section of all multipurpose passenger vehicles registered under another 3
classification. 4
13–955. 5
(a) In this section, “Fund” means the Maryland Emergency Medical System 6
Operations Fund. 7
(e) [The] EXCEPT AS PROVIDED IN SUBSECTION (F) OF THIS SECTION, THE 8
money in the Fund shall be used solely for: 9
(1) Medically oriented functions of the Department of State Police, Special 10
Operations Bureau, Aviation Division; 11
(2) The Maryland Institute for Emergency Medical Services Systems; 12
(3) The R Adams Cowley Shock T rauma Center at the University of 13
Maryland Medical System; 14
(4) The Maryland Fire and Rescue Institute; 15
(5) The provision of grants under the Senator William H. Amoss Fire, 16
Rescue, and Ambulance Fund in accordance with the provisions of Title 8, Subtitle 1 of the 17
Public Safety Article; and 18
(6) The Volunteer Company Assistance Fund in accordance with the 19
provisions of Title 8, Subtitle 2 of the Public Safety Article. 20
(F) FOR FISCAL YEARS 2025 AND 2026, THE MONEY IN THE FUND MAY BE 21
USED TO SUPPORT GENERAL OPERATIONS O F THE DEPARTMENT OF STATE POLICE, 22
SPECIAL OPERATIONS BUREAU, AVIATION COMMAND. 23
17–106. 24
(a) If the required security for any vehicle lapses at any time, the registration of 25
that vehicle: 26
(1) Is suspended automatically as of the date of the lapse effective not later 27
than 60 days after notification to the Administration that the lapse has occurred; and 28
(2) Remains suspended until: 29
HOUSE BILL 352 91
(i) The required security is replaced and the vehicle owner submits 1
evidence of replaced security on a form as prescribed by the Administration and certified 2
by an insurer or insurance producer; and 3
(ii) Any uninsured motorist penalty fee assessed is paid to the 4
Administration. 5
(b) (1) Except as provided in paragraph (2) of this subsection, each insurer or 6
other provider of required security immediately shall notify the Administration 7
electronically of those terminations or other lapses that are final. 8
(2) Each insurer or other provider of required security for a vehicle 9
registered as a Class B (for hire) vehicle under Title 13 of this article shall notify the 10
Administration within 45 days after a termination or other lapse that is final and occurs 11
anytime after the required security is issued or provided. 12
(c) On receipt of a notice under subsection (b) of this section, the Administration 13
shall: 14
(1) Make a reasonable effort to notify the owner of the vehicle that his 15
registration has been suspended; and 16
(2) Provide electronically the information contained in the notice of the 17
suspension to the Uninsured Division of the Maryland Automobile Insurance Fund. 18
(d) (1) Within 48 hours after an owner is notified by the Administration of the 19
suspension of registration, the owner shall surrender all evidences of that registration to 20
the Administration. 21
(2) If the owner fails to surrender the evidences of registration within the 22
48–hour period, the Administration: 23
(i) Shall attempt to recover from the owner the evidences of 24
registration; and 25
(ii) May suspend his license to drive until he returns to the Motor 26
Vehicle Administration the evidences of registration. 27
(3) The Administration may enter into contracts with private parties to 28
procure the services of independent agents to assist in the recovery of the evidences of 29
registration as authorized in paragraph (2) of this subsection. 30
(e) (1) (i) 1. Except as provided in subparagraphs (iv) and (v) of this 31
paragraph, in addition to any other penalty provided for in the Maryland Vehicle Law, if 32
the required security for a vehicle terminates or otherwise lapses during its registration 33
year, the Administration may assess the owner of the vehicle with a penalty of $200 for 34
each vehicle without the required security for a period of 1 to 30 days. 35 92 HOUSE BILL 352
2. If a fine is assessed, beginning on the 31st day the fine 1
shall increase by a rate of $7 for each day. 2
(ii) Each period during which the required security for a vehicle 3
terminates or otherwise lapses shall constitute a separate violation. 4
(iii) The penalty imposed under this subsection may not exceed 5
$3,500 for each violation in a 12–month period. 6
(iv) The Administration may not assess a penalty under this 7
subsection if: 8
1. The registration plates of the vehicle are returned to the 9
Administration within 10 days after the termination or lapse of the required security, as 10
shown by the records of the Administration; and 11
2. A. The certificate of title for the vehicle has been 12
transferred to a new owner; 13
B. The registered owner has moved out–of–state and the 14
registration plates are returned by mail; 15
C. A salvage certificate has been issued for the vehicle; or 16
D. A licensed dealer has taken possession of the vehicle with 17
an obligation to return the registration plates. 18
(v) Before the Administration may assess a penalty under this 19
subsection, the Administration shall first verify that the registration plates for the vehicle 20
were not returned to the Administration within 10 days after the termination or lapse of 21
the required security. 22
(2) (i) Except as provided under paragraph (3) of this subsection, a 23
penalty assessed under this subsection shall be paid as follows: 24
1. 70% to be allocated as provided in subparagraph (ii) of this 25
paragraph; and 26
2. 30% to the Administration, which may be used by the 27
Administration, subject to subsection (f) of this section, to provide funding for contracts 28
with independent agents to assist in the recovery of evidences of registration as authorized 29
in subsection (d)(3) of this section. 30
(ii) For each fiscal year beginning on or after July 1, 2014, the 31
percentage of the penalties specified under subparagraph (i)1 of this paragraph shall be 32
allocated among the Safe Schools Fund, the Vehicle Theft Prevention Fund, the Maryland 33 HOUSE BILL 352 93
Automobile Insurance Fund, [the Driver Education in Public High Schools Fund, the 1
State–Aided Institutions Field Trip Fund,] and the General Fund as follows: 2
1. $600,000 to the Safe Schools Fund; 3
2. $2,000,000 to the Vehicle Theft Prevention Fund; 4
3. The amounts specified under subparagraph (iii) of this 5
paragraph to the Maryland Automobile Insurance Fund; AND 6
4. [$2,000,000 to the Driver Education in Public High 7
Schools Fund; 8
5. $600,000 to the State–Aided Institutions Field Trip Fund; 9
and 10
6.] The balance to the General Fund. 11
(iii) 1. Except for fiscal year 2024 and except as provided under 12
subsubparagraph 3 of this subparagraph, the amount distributed to the Maryland 13
Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall equal the 14
amount distributed to the Maryland Automobile Insurance Fund in the prior fiscal year 15
under the provisions of this paragraph adjusted by the change for the calendar year 16
preceding the fiscal year in the Consumer Price Index – All Urban Consumers – Medical 17
Care as published by the United States Bureau of Labor Statistics. 18
2. For fiscal year 2024, the amount distributed to the 19
Maryland Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall 20
equal the amount distributed to the Maryland Automobile Insurance Fund in the prior 21
fiscal year under the provisions of this paragraph adjusted by the change for the calendar 22
year preceding the fiscal year in the Consumer Price Index – All Urban Consumers – 23
Medical Care as published by the United States Bureau of Labor Statistics plus an 24
additional $2,000,000. 25
3. For fiscal year 2025, the amount distributed to the 26
Maryland Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall 27
equal the amount distributed to the Maryland Automobile Insurance Fund calculated in 28
accordance with subsubparagraph 1 of this subparagraph: 29
A. Plus an additional $3,000,000 dedicated to the exclusive 30
use of the Uninsured Division, which shall become part of the base amount used to calculate 31
the amount distributed under subsubparagraph 1 of this subparagraph in subsequent fiscal 32
years; but 33
B. Excluding the $2,000,000 distributed to the Fund in fiscal 34
year 2024. 35
94 HOUSE BILL 352
TITLE 18.8. RETAIL DELIVERY FEE. 1
18.8–101. 2
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 3
INDICATED. 4
(B) “MARKETPLACE FACILITAT OR” HAS THE MEANING STAT ED IN § 11–101 5
OF THE TAX – GENERAL ARTICLE. 6
(C) “MARKETPLACE SELLER ” HAS THE MEANING STAT ED IN § 11–101 OF 7
THE TAX – GENERAL ARTICLE. 8
(D) (1) “RETAIL DELIVERY ” MEANS A DELIVERY TO A PERSON LOCATED 9
IN THE STATE OF TANGIBLE PER SONAL PROPERTY PURCH ASED BY A PERSON 10
LOCATED IN THE STATE AS PART OF A RE TAIL SALE THAT IS SU BJECT TO THE SALES 11
AND USE TAX. 12
(2) “RETAIL DELIVERY ” DOES NOT INCLU DE PICKUP BY THE BUY ER 13
AT THE VENDOR ’S PLACE OF BUSINESS , INCLUDING CURBSIDE D ELIVERY. 14
(E) “RETAIL DELIVERY FEE ” MEANS THE FEE IMPOSE D UNDER THIS TITLE 15
ON A RETAIL DELIVERY . 16
(F) “RETAIL SALE” INCLUDES A SALE FOR USE, AS DEFINED IN § 11–101 OF 17
THE TAX – GENERAL ARTICLE. 18
(G) “SALES AND USE TAX ” MEANS THE TAX IMPOSE D UNDER TITLE 11 OF 19
THE TAX – GENERAL ARTICLE. 20
(H) “TANGIBLE PERSONAL PRO PERTY” HAS THE MEANING STAT ED IN § 21
11–101 OF THE TAX – GENERAL ARTICLE. 22
(I) “VENDOR” HAS THE MEANING STAT ED IN § 11–101 OF THE TAX – 23
GENERAL ARTICLE. 24
18.8–102. 25
A RETAIL DELIVERY FEE AND THE REQUIREMENTS OF THIS TITLE APPLY ONLY 26
TO: 27
(1) A VENDOR THAT MADE RET AIL SALES TOTALING $500,000 OR 28
MORE: 29 HOUSE BILL 352 95
(I) IN THE PREVIOUS CALEN DAR YEAR; OR 1
(II) SUBJECT TO § 18.8–105(A)(2) OF THIS SUBTITLE , IN THE 2
CURRENT CALENDAR YEA R; OR 3
(2) A MARKETPLACE FACILITA TOR THAT FACILITATED RETAIL SALES 4
OF MARKETPLACE SELLE RS TOTALING $100,000 OR MORE: 5
(I) IN THE PREVIOUS CALEN DAR YEAR; OR 6
(II) SUBJECT TO § 18.8–105(A)(3) OF THIS SUBTITLE , IN THE 7
CURRENT CALENDAR YEA R. 8
18.8–103. 9
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A VENDOR OR 10
MARKETPLACE FACILITA TOR SHALL PAY A RETA IL DELIVERY FEE EQUA L TO 75 11
CENTS ON EACH RETAIL DELIVERY TRANSACTION THE VENDOR OR MARK ETPLACE 12
FACILITATOR MAKES IN THE STATE. 13
(2) (I) THE RETAIL DELIVERY F EE SHALL BE INCREASE D JULY 1, 14
2026, AND EACH JULY 1 THEREAFTER IN ACCORD ANCE WITH THIS PARAG RAPH. 15
(II) ON OR BEFORE JUNE 1 EACH YEAR, THE COMPTROLLER 16
SHALL DETERMINE AND ANNOUNCE: 17
1. THE GROWTH IN THE CONSUMER PRICE INDEX FOR 18
ALL URBAN CONSUMERS AS DETERMIN ED BY THE COMPTROLLER UNDER 19
SUBPARAGRAPH (III) OF THIS PARAGRAPH ; AND 20
2. THE RETAIL DELIVERY F EE EFFECTIVE FOR THE 21
FISCAL YEAR BEGINNIN G ON THE FOLLOWING JULY 1 AS DETERMINED BY THE 22
COMPTROLLER UNDER SUB PARAGRAPH (IV) OF THIS PARAGRAPH . 23
(III) 1. IN THIS SUBPARAGRAPH , “CONSUMER PRICE INDEX 24
FOR ALL URBAN CONSUMERS” MEANS THE INDEX PUBL ISHED MONTHLY BY THE 25
BUREAU OF LABOR STATISTICS OF THE U.S. DEPARTMENT OF LABOR THAT IS THE 26
U.S. CITY AVERAGE OF ALL ITEMS IN A BASKET OF CONSUMER GOODS AND 27
SERVICES. 28
2. THE PERCENTAGE GROWTH IN THE CONSUMER 29
PRICE INDEX FOR ALL URBAN CONSUMERS SHALL BE DE TERMINED BY COMPARIN G 30 96 HOUSE BILL 352
THE AVERAGE OF THE I NDEX FOR THE 12 MONTHS ENDING ON T HE PRECEDING 1
APRIL 30 TO THE AVERAGE OF TH E INDEX FOR THE PRIO R 12 MONTHS. 2
(IV) SUBJECT TO SUBPARAGRA PH (V) OF THIS PARAGRAPH , ON 3
JULY 1 EACH YEAR, THE RETAIL DELIVERY FEE SHALL BE INCREAS ED BY THE 4
AMOUNT, ROUNDED TO THE NEARE ST ONE–TENTH OF A CENT , THAT EQUALS THE 5
PRODUCT OF MULTIPLYI NG: 6
1. THE RETAIL DELIVERY F EE IN EFFECT ON THE DATE 7
OF THE COMPTROLLER ’S ANNOUNCEMENT UNDER SUBPARAGRAPH (II) OF THIS 8
PARAGRAPH ; AND 9
2. THE PERCENTAGE GROWTH IN THE CONSUMER 10
PRICE INDEX FOR ALL URBAN CONSUMERS. 11
(V) IF THERE IS A DECLINE OR NO GROWTH IN THE CONSUMER 12
PRICE INDEX FOR ALL URBAN CONSUMERS, THE RETAIL DELIVERY FEE SHALL 13
REMAIN UNCHANGED . 14
(B) (1) A VENDOR OR MARKETPLAC E FACILITATOR SHALL : 15
(I) COLLECT THE RETAIL DEL IVERY FEE FROM A BUY ER; OR 16
(II) PAY THE RETAIL DELIVE RY FEE ON BEHALF OF A BUYER. 17
(2) IF A VENDOR OR MARKET PLACE FACILITATOR COLLECTS THE 18
RETAIL DELIVERY FEE FROM THE BUYER , THE RETAIL DELIVERY FEE SHALL BE: 19
(I) CHARGED IN ADDITION TO ANY OTHE R DELIVERY FEE 20
ASSESSED BY THE VEND OR OR MARKETPLACE FA CILITATOR; 21
(II) ITEMIZED AS A SEPARAT E LINE ITEM ON THE B UYER’S 22
RECEIPT, INVOICE, OR OTHER BILL OF SAL E, DISTINCT FROM THE SA LES PRICE, 23
SALES AND USE TAX , OR ANY OTHER TAX OR FEE IMPOSED; AND 24
(III) LISTED ON THE RECEIPT , INVOICE, OR OTHER BILL OF SAL E 25
AS “DELIVERY IMPACT FEE”. 26
(C) A RETAIL DELIVERY FEE SHALL BE ASSESSED ON LY ONCE PER 27
TRANSACTION REGARDLE SS OF WHETHER : 28
(1) THE TANGIBLE PERSONAL PROPERTY PURCHASED I S DELIVERED 29
IN ONE SHIPMENT OR M ULTIPLE SHIPMENTS ; OR 30 HOUSE BILL 352 97
(2) THE PURCHASE CONTAINS ONE ITEM OR MULTI PLE ITEMS OF 1
TANGIBLE PERSONAL PR OPERTY. 2
(D) THE RETAIL DELIVERY F EE MAY NOT BE REFUND ED TO THE BUYER 3
UNLESS THE RETAIL DE LIVERY IN CANCELED B Y THE BUYER , VENDOR, 4
MARKETPLACE FACILITA TOR, OR DELIVERY PROVIDER . 5
18.8–104. 6
THE RETAIL DELIVERY F EE UNDER THIS TITLE DOES NOT APPLY TO THE SALE 7
OR PURCHASE OF TANGI BLE PERSONAL PROPERT Y THAT IS EXEMPT FRO M THE 8
SALES AND USE TAX . 9
18.8–105. 10
(A) (1) (I) A VENDOR OR MARKETPLAC E FACILITATOR SHALL 11
COLLECT AND REMIT TH E RETAIL DELIVERY FE E TO THE COMPTROLLER IN THE 12
MANNER PRESCRIBED BY THE COMPTROLLER . 13
(II) THE REQUIREMENTS OF § 11–403.1 OF THE TAX – GENERAL 14
ARTICLE RELATING TO T HE COLLECTION OF THE SALES AND USE TAX BY A 15
MARKETPLACE FACILITA TOR APPLY TO THE COL LECTION OF THE RETAI L DELIVERY 16
FEE BY A MARKETPLACE FACILITA TOR. 17
(2) A VENDOR THAT DID NOT MAKE RETAIL SALES TO TALING 18
$500,000 OR MORE IN THE PREVI OUS CALENDAR YEAR SH ALL REMIT THE RET AIL 19
DELIVERY FEE TO THE COMPTROLLER BEGINNING ON OR BEFORE THE FIR ST DAY 20
OF THE MONTH THAT IS 60 DAYS AFTER T HE MONTH IN WHICH TH E VENDOR MAKES 21
RETAIL SALES TOTALIN G $500,000 OR MORE IN CURRENT C ALENDAR YEAR . 22
(3) A MARKETPLACE FACILITA TOR THAT DID NOT FAC ILITATE 23
RETAIL SALES OF MARK ETPLACE SELLERS TOTA LING $100,000 OR MORE IN THE 24
PREVIOUS CALENDAR YE AR SHALL R EMIT THE RETAIL DELI VERY FEE TO THE 25
COMPTROLLER BEGINNING ON OR BEFORE THE FIR ST DAY OF THE MONTH THAT IS 26
60 DAYS AFTER THE MONTH IN WHICH THE MARKETP LACE FACILITATOR 27
FACILITATES THE RETA IL SALES OF MARKETPL ACE SELLERS TOTALING $100,000 28
OR MORE IN THE CURR ENT CALENDAR YEAR . 29
(B) (1) A VENDOR OR MARKETPLAC E FACILITATOR SHALL : 30
(I) REPORT THE RETAIL DEL IVERY FEE ON A RETUR N AS 31
PRESCRIBED BY THE COMPTROLLER ; AND 32 98 HOUSE BILL 352
(II) REMIT THE RETAIL DELI VERY FEE WITH THE RE TURN. 1
(2) A VENDOR OR MARKETPLAC E FACILITATOR SHALL FI LE AND PAY 2
THE RETAIL DELIVERY FEE USING THE FILING CYCLE AND DUE DATES PRESCRIBED 3
BY THE COMPTROLLER IN ACCORD ANCE WITH SUBSECTION (A) OF THIS SECTION. 4
(C) (1) A VENDOR OR MARKETPLAC E FACILITATOR THAT C OLLECTS THE 5
RETAIL DELIVERY FEE FROM THE BUYER SHALL COLLECT THE RETAIL D ELIVERY 6
FEE IN THE SAME MANN ER AS THE SALES AND USE TAX. 7
(2) A VENDOR OR MARKETPLAC E FACILITATOR THAT U SES A 8
THIRD–PARTY ENTITY TO COLL ECT AND REMIT THE SA LES AND USE TAX MAY ELECT 9
TO HAVE THE THIRD –PARTY ENTITY COLLECT AND REMIT THE RETAIL DELIVERY 10
FEE. 11
(3) A VENDOR OR MARKETPLAC E FACILITATOR THAT P AYS THE 12
RETAIL DELIVERY FEE ON BEHALF OF A BUYER SHALL REMIT THE RETA IL DELIVERY 13
FEE TO THE COMPTROLLER AS IF THE RETAIL DELIVERY FEE HAD BEEN COLLECTED 14
FROM THE BUYER ON THE DATE OF THE RETAIL DELIVE RY. 15
18.8–106. 16
(A) EXCEPT AS OTHERWISE P ROVIDED IN THIS TITL E, THE AUDIT, 17
ASSESSMENT , LIABILITY OR PAYMENT , REFUND, PENALTY, INTEREST, 18
ENFORCEMENT , COLLECTION REMEDIES , APPEAL, AND ADMINISTRATIVE 19
PROVISIONS THAT ARE APPLICABLE TO THE SA LES AND USE TAX APPL Y TO THE 20
RETAIL DELIVERY FEE. 21
(B) FROM THE REVENUE ATTR IBUTABLE TO THE RETA IL DELIVERY FEE , 22
THE COMPTROLLER SHALL DIS TRIBUTE THE AMOUNT N ECESSARY TO PAY REFU NDS 23
RELATING TO THE RETA IL DELIVERY FEE TO A REFUND ACCOUNT . 24
(C) AFTER MAKING THE DIST RIBUTION REQUIRED UNDER SU BSECTION (B) 25
OF THIS SECTION , THE COMPTROLLER SHALL DIS TRIBUTE THE AMOUNT 26
NECESSARY TO ADMINIS TER THE RETAIL DELIV ERY FEE TO AN ADMINI STRATIVE 27
FEE ACCOUNT . 28
(D) AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER SUBSECTIONS 29
(B) AND (C) OF THIS SECTION , THE COMPTROLLER SHALL DEPO SIT THE BALANCE 30
OF THE REVENUE ATTRI BUTABLE TO THE RETAI L DELIVERY FEE INTO THE 31
TRANSPORTATION TRUST FUND ESTABLISHED UNDER § 3–216 OF THIS ARTICLE. 32
HOUSE BILL 352 99
23–205. 1
(a) (1) Subject to paragraph (2) of this subsection, the Administration and the 2
Secretary shall set the fee to be charged for each vehicle to be inspected and tested by a 3
facility. 4
(2) The fee established under this subsection: 5
(i) [During the period from January 1, 1995 through May 31, 1997, 6
may not exceed $12; and 7
(ii)] During the period [after] FROM May 31, 1997, THROUGH JUNE 8
30, 2025, may not exceed $14; 9
(II) DURING THE PERIOD FRO M JULY 1, 2025, THROUGH JUNE 10
30, 2026, MAY NOT EXCEED $30; AND 11
(III) EXCEPT AS PROVIDED IN PARAGRAPH (4)(III) OF THIS 12
SUBSECTION, DURING THE PERIOD AF TER JULY 1, 2026, SHALL EQUAL AT LEAST 13
THE AMOUNT IN THE IM MEDIATELY PRECEDING FISCAL YEAR ADJUSTED FOR 14
INFLATION IN ACCORDA NCE WITH PARAGRAPH (3) OF THIS SUBSECTION . 15
(3) DURING THE PERIOD AFT ER JUNE 30, 2026, THE FEE 16
ESTABLISHED UNDER THIS SUBSECTION SHALL EQU AL AT LEAST THE AMOU NT IN 17
THE IMMEDIATELY PREC EDING FISCAL YEAR AD JUSTED FOR INFLATION IN 18
ACCORDANCE WITH PARA GRAPH (4) OF THIS SUBSECTION . 19
(4) (I) THE INFLATION ADJUSTM ENT SHALL EQUAL THE PRODUCT 20
OF MULTIPLYING THE AMOUNT OF FUNDIN G IN THE IMMEDIATELY PRECEDING 21
FISCAL YEAR BY THE P ERCENTAGE INCREASE I N THE CONSUMER PRICE INDEX FOR 22
ALL URBAN CONSUMERS. 23
(II) THE PERCENTAGE INCREA SE IN THE CONSUMER PRICE 24
INDEX FOR ALL URBAN CONSUMERS SHALL BE DE TERMINED BY COMP ARING THE 25
AVERAGE OF THE INDEX FOR THE 12 MONTHS ENDING APRIL 30 IMMEDIATELY 26
PRECEDING THE FISCAL YEAR FOR WHICH THE FUNDING AM OUNT IS BEING 27
CALCULATED TO THE AV ERAGE INDEX FOR THE PRIOR 12 MONTHS. 28
(III) IF THERE IS A DECLINE OR NO GROWTH IN THE CONSUMER 29
PRICE INDEX FOR ALL URBAN CONSUMERS, THE FEE AMOUNT UNDER THIS 30
PARAGRAPH SHALL REMA IN UNCHANGED . 31
(b) The fee shall be collected in a manner established by the Administration and 32
the Secretary. 33 100 HOUSE BILL 352
(c) A specific portion of the fee shall be paid to or retained by the Administration 1
to cover the cost of administration and enforcement of the emissions control program, as 2
provided in the contract between the contractor and the State. 3
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4
as follows: 5
Article – Tax – General 6
7–309. 7
(a) Notwithstanding an Act of Congress that repeals or reduces the federal credit 8
under § 2011 of the Internal Revenue Code, the provisions of this subtitle in effect before 9
the passage of the Act of Congress shall apply with respect to a decedent who dies after the 10
effective date of the Act of Congress so as to continue the Maryland estate tax in force 11
without reduction in the same manner as if the federal credit had not been repealed or 12
reduced. 13
(b) (1) Except as provided in paragraphs (2) through (9) of this subsection and 14
subsection (c) of this section, after the effective date of an Act of Congress described in 15
subsection (a) of this section, the Maryland estate tax shall be determined using: 16
(i) the federal credit allowable by § 2011 of the Internal Revenue 17
Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of 18
Congress; and 19
(ii) other provisions of federal estate tax law as in effect on the date 20
of the decedent’s death. 21
(2) Except as provided in paragraphs (3) through (9) of this subsection and 22
subsection (c) of this section, if the federal estate tax is not in effect on the date of the 23
decedent’s death, the Maryland estate tax shall be determined using: 24
(i) the federal credit allowable by § 2011 of the Internal Revenue 25
Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of 26
Congress; and 27
(ii) other provisions of federal estate tax law as in effect on the date 28
immediately preceding the effective date of the repeal of the federal estate tax. 29
(3) (i) Notwithstanding any increase in the unified credit allowed 30
against the federal estate tax for decedents dying after 2003, the unified credit used for 31
determining the Maryland estate tax for a decedent may not exceed the applicable credit 32
amount corresponding to an applicable exclusion amount, within the meaning of § 2010(c) 33
of the Internal Revenue Code, of: 34
HOUSE BILL 352 101
1. $1,000,000 for a decedent dying before January 1, 2015; 1
2. $1,500,000 for a decedent dying on or after January 1, 2
2015, but before January 1, 2016; 3
3. $2,000,000 for a decedent dying on or after January 1, 4
2016, but before January 1, 2017; 5
4. $3,000,000 for a decedent dying on or after January 1, 6
2017, but before January 1, 2018; 7
5. $4,000,000 for a decedent dying on or after January 1, 8
2018, but before January 1, 2019; [and] 9
6. $5,000,000 for a decedent dying on or after January 1, 10
2019, BUT BEFORE JULY 1, 2025; AND 11
7. $2,000,000 FOR A DECEDENT DYING ON OR AFTER 12
JULY 1, 2025, plus any deceased spousal unused exclusion amount calculated in 13
accordance with paragraph (9) of this subsection. 14
(ii) The Maryland estate tax shall be determined without regard to 15
any deduction for State death taxes allowed under § 2058 of the Internal Revenue Code. 16
(iii) Unless the federal credit allowable by § 2011 of the Internal 17
Revenue Code is in effect on the date of the decedent’s death, the federal credit used to 18
determine the Maryland estate tax may not exceed 16% of the amount by which the 19
decedent’s taxable estate, as defined in § 2051 of the Internal Revenue Code, exceeds: 20
1. $1,000,000 for a decedent dying before January 1, 2015; 21
2. $1,500,000 for a decedent dying on or after January 1, 22
2015, but before January 1, 2016; 23
3. $2,000,000 for a decedent dying on or after January 1, 24
2016, but before January 1, 2017; 25
4. $3,000,000 for a decedent dying on or after January 1, 26
2017, but before January 1, 2018; 27
5. $4,000,000 for a decedent dying on or after January 1, 28
2018, but before January 1, 2019; [and] 29
6. $5,000,000 for a decedent dying on or after January 1, 30
2019, BUT BEFORE JULY 1, 2025; AND 31
102 HOUSE BILL 352
7. $2,000,000 FOR A DECEDENT DYING ON OR AFTER 1
JULY 1, 2025, plus any deceased spousal unused exclusion amount calculated in 2
accordance with paragraph (9) of this subsection. 3
(4) (i) With regard to an election to value property as provided in § 2032 4
of the Internal Revenue Code, if a federal estate tax return is not required to be filed: 5
1. an irrevocable election made on a timely filed Maryland 6
estate tax return shall be deemed to be an election as required by § 2032(d) of the Internal 7
Revenue Code; 8
2. the provisions of § 2032(c) of the Internal Revenue Code 9
do not apply; and 10
3. an election may not be made under item 1 of this 11
subparagraph unless that election will decrease: 12
A. the value of the gross estate; and 13
B. the Maryland estate tax due with regard to the transfer of 14
a decedent’s Maryland estate. 15
(ii) An election to value property as provided in § 2032 of the Internal 16
Revenue Code for Maryland estate tax purposes must be the same as the election made for 17
federal estate tax purposes. 18
(5) (i) With regard to an election to treat property as marital deduction 19
qualified terminable interest property in calculating the Maryland estate tax, an 20
irrevocable election made on a timely filed Maryland estate tax return shall be deemed to 21
be an election as required by § 2056(b)(7)(B)(i), (iii), and (v) of the Internal Revenue Code. 22
(ii) An election under this paragraph made on a timely filed 23
Maryland estate tax return shall be recognized for purposes of calculating the Maryland 24
estate tax even if an inconsistent election is made for the same decedent for federal estate 25
tax purposes. 26
(6) (i) For purposes of calculating Maryland estate tax, a decedent shall 27
be deemed to have had a qualifying income interest for life under § 2044(a) of the Internal 28
Revenue Code with regard to any property for which a marital deduction qualified 29
terminable interest property election was made for the decedent’s predeceased spouse on a 30
timely filed Maryland estate tax return under paragraph (5) of this subsection. 31
(ii) For the purpose of apportioning Maryland estate tax under § 32
7–308 of this subtitle, any property as to which a decedent is deemed to have had a 33
qualifying income interest for life under subparagraph (i) of this paragraph shall be deemed 34
to be included in both the estate and the taxable estate of the decedent. 35
HOUSE BILL 352 103
(7) For purposes of calculating Maryland estate tax, amounts allowable 1
under § 2053 or § 2054 of the Internal Revenue Code as a deduction in computing the 2
taxable estate of a decedent may not be allowed as a deduction or as an offset against the 3
sales price of property in determining gain or loss if the amount has been allowed as a 4
deduction in computing the federal taxable income of the estate or of any other person. 5
(8) Notwithstanding any contrary definition of “marriage” and “spouse” 6
under any applicable provision of federal law, for purposes of calculating Maryland estate 7
tax under this subsection, the surviving “spouse” of a decedent shall include any individual 8
to whom, at the time of the decedent’s death, the decedent was lawfully married as 9
determined under the laws of the State. 10
(9) (i) In this paragraph, “deceased spousal unused exclusion amount” 11
means the applicable exclusion amount in effect at the time of the death of the last 12
predeceased spouse of the decedent under paragraph (3) of this subsection reduced by the 13
taxable estate of the last predeceased spouse: 14
1. as reported on a Maryland estate tax return filed with the 15
Comptroller; or 16
2. as reported on a federal estate tax return, if: 17
A. the last predeceased spouse was not a Maryland resident 18
and no property with a Maryland estate tax situs was includible in the gross estate of the 19
last predeceased spouse; or 20
B. the last predeceased spouse died before January 1, 2019, 21
and no Maryland estate tax return was required to be filed with respect to the predeceased 22
spouse’s estate. 23
(ii) The deceased spousal unused exclusion amount may not be taken 24
into account under paragraph (3) of this subsection unless: 25
1. if the last predeceased spouse died on or after January 1, 26
2019, a Maryland estate tax return is timely filed for the last predeceased spouse, on which 27
the deceased spousal unused exclusion amount is calculated and an irrevocable election is 28
made that the deceased spousal unused exclusion amount may be taken into account; or 29
2. if the last predeceased spouse died before January 1, 2019, 30
or was not a Maryland resident and no property with a Maryland estate tax situs was 31
includible in the gross estate of the last predeceased spouse, an election was made under § 32
2010(c) of the Internal Revenue Code on the federal estate tax return of the last 33
predeceased spouse. 34
(iii) 1. Notwithstanding any other provision of this article, the 35
Comptroller may examine a Maryland estate tax return of a predeceased spouse after the 36
time for assessing a tax under this title has expired under § 13–1101 of this article solely 37 104 HOUSE BILL 352
for the purposes of determining the validity of the deceased spousal unused exclusion 1
election and the amount to be taken into account under paragraph (3) of this subsection. 2
2. This subparagraph may not be construed to authorize the 3
assessment of any additional tax with respect to the predeceased spouse’s Maryland estate 4
tax return if the period of limitation under § 13–1101 of this article has expired. 5
10–740. 6
(a) (1) In this section the following words have the meanings indicated. 7
(2) “Commission” means the Maryland Higher Education Commission. 8
(3) “Qualified taxpayer” means an individual who has: 9
(i) incurred at least $20,000 in undergraduate or graduate student 10
loan debt or both; and 11
(ii) has at least $5,000 in outstanding undergraduate or graduate 12
student loan debt or both when submitting an application under subsection (c) of this 13
section. 14
(b) Subject to the limitations of this section, a qualified taxpayer may claim a 15
credit against the State income tax for the taxable year in which the Commission certifies 16
a tax credit under this section. 17
(c) (1) (i) By September 15 of each year, an individual shall submit an 18
application to the Commission for the credit allowed under this section. 19
(ii) The individual shall submit with the application an assurance 20
that the individual will use any credit approved under this section for the repayment of the 21
individual’s undergraduate or graduate student loan debt or both as soon as practicable. 22
(iii) 1. The total amount of the credit claimed under this section 23
shall be recaptured if the individual does not use the credit approved under this section for 24
the repayment of the individual’s undergraduate or graduate student loan debt or both 25
within 3 years from the close of the taxable year for which the credit is claimed. 26
2. The individual who claimed the credit shall pay the total 27
amount of the credit claimed as taxes payable to the State for the taxable year in which the 28
event requiring recapture of the credit occurs. 29
(2) By December 15 of each year the Commission shall certify to the 30
individual the amount of any tax credit approved by the Commission under this section, 31
not to exceed $5,000. 32
HOUSE BILL 352 105
(3) (I) FOR TAX YEAR 2025, THE TOTAL AMOUNT OF TAX CREDITS 1
APPROVED BY THE COMMISSION UNDER THIS SECTION MAY NOT EXCE ED 2
$9,000,000. 3
(II) For any taxable year AFTER 2025, the total amount of tax 4
credits approved by the Commission under this section may not exceed $18,000,000. 5
(4) (i) Except as provided in subparagraph (ii) of this paragraph, the 6
Commission shall reserve $9,000,000 of the tax credits authorized under paragraph (3) of 7
this subsection for the following individuals in the following order of priority: 8
1. State employees who graduated from institutions of 9
higher education in the State where at least 40% of the attendees are eligible to receive 10
federal Pell Grants; and 11
2. all other State employees not described under item 1 of 12
this subparagraph. 13
(ii) If the total amount of tax credits applied for by individuals 14
described under subparagraph (i) of this paragraph is less than $9,000,000 for a taxable 15
year, the Commission may make available the unused amount of credits for use by other 16
qualified taxpayers. 17
(5) To claim the tax credit allowed under this section, an individual shall 18
attach a copy of the Commission’s certification of the approved credit amount to the income 19
tax return. 20
(g) (1) On or before January 1 each year, the Commission shall report to the 21
Governor and, in accordance with § 2–1257 of the State Government Article, the General 22
Assembly on: 23
[(1)] (I) the number of applicants for the tax credit authorized under this 24
section; 25
[(2)] (II) the number and amounts of tax credits awarded under this 26
section to qualified taxpayers; 27
[(3)] (III) a breakdown of the age, gender, race, income, and counties of 28
residency of qualified taxpayers who receive the credit; and 29
[(4)] (IV) any additional information that the Commission deems relevant. 30
(2) ON OR BEFORE JANUARY 1, 2026, THE COMMISSION SHALL 31
REPORT TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 32
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY RECOMMENDATI ONS FOR 33 106 HOUSE BILL 352
CHANGES T O STATUTE OR REGULAT IONS THAT WOULD BETT ER TARGET THE 1
ALLOCATION OF TAX CR EDITS UNDER THIS PRO GRAM. 2
(i) The tax credit under this section shall be referred to as the Student Loan Debt 3
Relief Tax Credit. 4
10–741. 5
(d) (1) In this subsection, “Reserve Fund” means the More Jobs for 6
Marylanders Tax Credit Reserve Fund established under paragraph (2) of this subsection. 7
(2) (i) There is a More Jobs for Marylanders Tax Credit Reserve Fund 8
that is a special continuing, nonlapsing fund that is not subject to § 7–302 of the State 9
Finance and Procurement Article. 10
(ii) The money in the Reserve Fund shall be invested and reinvested 11
by the Treasurer, and interest and earnings shall be credited to the General Fund. 12
(3) (i) Subject to the limitations of this subsection, the Department 13
shall issue an initial tax credit certificate in an amount equal to a percentage of total wages 14
paid for each qualified position at an eligible project as calculated under subsection (b)(2) 15
of this section. 16
(ii) An initial tax credit certificate issued under this subsection shall 17
state the maximum amount of tax credit for which the qualified business entity is eligible. 18
(iii) 1. Except as otherwise provided in this subparagraph, for 19
any fiscal year, the Department may not issue initial tax credit certificates for credit 20
amounts in the aggregate totaling more than: 21
A. with respect to qualified business entities provided a 22
certificate under § 6–805 of the Economic Development Article before June 1, 2022, 23
$9,000,000 in a fiscal year; and 24
B. with respect to qualified business entities provided a 25
certificate under § 6–805 of the Economic Development Article on or after June 1, 2022, 26
$5,000,000 in a fiscal year. 27
2. [If] THROUGH FISCAL YEAR 2025, IF the aggregate 28
credit amounts under initial tax credit certificates issued in a fiscal year total less than the 29
maximum provided under subsubparagraph 1 of this subparagraph, any excess amount 30
shall remain in the Reserve Fund. 31
3. FOR FISCAL YEAR 2026 AND EACH FISCAL Y EAR 32
THEREAFTER , IF THE AGGREGATE CRE DIT AMOUNTS UNDER IN ITIAL TAX CREDIT 33
CERTIFICATES ISSUED IN A FISCAL YEAR TOT AL LESS THAN THE MAX IMUM 34 HOUSE BILL 352 107
PROVIDED UNDER SUBSU BPARAGRAPH 1 OF THIS SUBPARAGRAPH , ANY EXCESS 1
AMOUNT SHALL REVERT TO THE GENERAL FUND OF THE STATE AT THE CLOSE OF 2
THE FISCAL YEAR . 3
[3.] 4. For any fiscal year, if funds are transferred from the 4
Reserve Fund under the authority of any provision of law other than under paragraph (4) 5
of this subsection, the maximum credit amounts in the aggregate for which the Department 6
may issue initial tax credit certificates shall be reduced by the amount transferred. 7
(iv) For fiscal year 2019 and each fiscal year thereafter, the Governor 8
shall include in the annual budget bill an appropriation to the Reserve Fund in an amount 9
that is no less than the amount the Department reports is necessary under subsection (e) 10
of this section to: 11
1. maintain the current level of manufacturing activity in the 12
State; 13
2. attract new manufacturing activity to the State; and 14
3. attract new businesses to and encourage the expansion of 15
existing businesses within opportunity zones in the State. 16
(v) Notwithstanding the provisions of § 7–213 of the State Finance 17
and Procurement Article, the Governor may not reduce an appropriation to the Reserve 18
Fund in the State budget as approved by the General Assembly. 19
(vi) Based on an amount equal to a percentage of the total actual 20
wages paid for each qualified position at an eligible project as calculated under subsection 21
(b)(2) of this section, the Department shall issue a final tax credit certificate to the qualified 22
business entity. 23
(4) (i) Except as provided in this paragraph, money appropriated to the 24
Reserve Fund shall remain in the Fund. 25
(ii) 1. Within 15 days after the end of each calendar quarter, the 26
Department shall notify the Comptroller as to each final credit certificate issued during the 27
quarter: 28
A. the maximum credit amount stated in the initial tax credit 29
certificate for the qualified business entity; and 30
B. the final certified credit amount for the qualified business 31
entity. 32
2. On notification that a final credit amount has been 33
certified, the Comptroller shall transfer an amount equal to the credit amount stated in the 34 108 HOUSE BILL 352
final tax credit certificate for the qualified business entity from the Reserve Fund to the 1
General Fund. 2
Article – Tax – Property 3
2–106. 4
(a) Each county shall provide the supervisor of the county with an office in the 5
county seat or in Baltimore City, for the supervisor of Baltimore City. The Department is 6
responsible for providing each supervisor with clerical staff, equipment, and other facilities 7
and assistance that the Department considers necessary and as provided in the State 8
budget. 9
(b) (1) Except as provided in paragraph (2) of this subsection, each county and 10
Baltimore City shall be responsible for reimbursing the State for the costs of administering 11
the Department as follows: 12
(i) [50%] 90% of the costs of real property valuation; 13
(ii) [50%] 90% of the costs of business personal property valuation; 14
and 15
(iii) [50%] 90% of the costs of the Office of Information Technology 16
within the Department, including any funding for departmental projects in the Major 17
Information Technology Development Project Fund established under § 3.5–309 of the 18
State Finance and Procurement Article. 19
(2) For each of fiscal years 2012 and 2013, each county and Baltimore City 20
shall be responsible for reimbursing the State 90% instead of 50% of the costs of 21
administering the Department described in paragraph (1) of this subsection. 22
(c) Costs under subsection (b) of this section shall be allocated among the counties 23
and Baltimore City as follows: 24
(1) costs under subsection (b)(1)(i) and (iii) of this section will be allocated 25
based on the number of real property accounts of a county or Baltimore City as a percentage 26
of the total number of real property accounts statewide as of July 1 of the preceding fiscal 27
year; and 28
(2) costs under subsection (b)(1)(ii) of this section will be allocated based on 29
the business personal property assessable base of a county or Baltimore City as a 30
percentage of the total business personal property assessable bases statewide as of July 1 31
of the preceding fiscal year. 32
(d) Each county and Baltimore City shall remit a quarterly payment to the 33
Comptroller for 25% of the jurisdiction’s share of costs on the following dates: 34
HOUSE BILL 352 109
(1) July 1; 1
(2) October 1; 2
(3) January 1; and 3
(4) April 1. 4
(e) The Comptroller may withhold a portion of a local income tax distribution of 5
a county or Baltimore City that fails to make timely payment in accordance with this 6
section. 7
9–103. 8
(a) (1) In this section the following words have the meanings indicated. 9
(2) “Base year” means the taxable year immediately before the taxable year 10
in which a property tax credit under this section is to be granted. 11
(3) (i) “Base year value” means the value of the property used to 12
determine the assessment on which the property tax on real property was imposed for the 13
base year. 14
(ii) “Base year value” does not include any new real property that 15
was first assessed in the base year. 16
(4) (i) “Business entity” means a person who operates or conducts a 17
trade or business. 18
(ii) “Business entity” includes a person who owns, operates, 19
develops, constructs, or rehabilitates real property, if the real property: 20
1. is intended for use primarily as single or multifamily 21
residential property located in the enterprise zone; and 22
2. is partially devoted to a nonresidential use. 23
(5) (i) “Eligible assessment” means the difference between the base 24
year value and the actual value as determined by the Department for the applicable taxable 25
year in which the tax credit under this section is to be granted. 26
(ii) For a business entity that is located on land or within 27
improvements owned by the federal, State, county, or municipal government, “eligible 28
assessment” means the difference between the base year value and the actual value 29
reduced by the value of any property entitled to an exemption under Title 7 of this article 30
as determined by the Department for the applicable taxable year in which the tax credit 31
under this section is to be granted. 32 110 HOUSE BILL 352
(6) (i) “Qualified property” means real property that is: 1
1. not used for residential purposes; 2
2. used in a trade or business by a business entity that meets 3
the requirements of § 5–707 of the Economic Development Article; and 4
3. located in an enterprise zone that is designated under 5
Title 5, Subtitle 7 of the Economic Development Article. 6
(ii) “Qualified property” includes personal property on real property 7
that is located in a focus area as defined in § 5–701 of the Economic Development Article. 8
(e) (1) A tax credit under this section is available to a qualified property for no 9
more than 10 consecutive years or, in the case of newly constructed qualified property that 10
provides both office and retail space and became eligible for the credit under this section 11
on or after January 1, 2019, but before January 1, 2022, no more than 13 consecutive years, 12
beginning with: 13
(i) the taxable year following the calendar year in which the real 14
property initially becomes a qualified property; or 15
(ii) the taxable year in which the real property initially becomes a 16
qualified property, subject to the approval of the appropriate local governing body and the 17
Secretary of Commerce. 18
(2) Even if the designation of an enterprise zone expires, the tax credit 19
under this section continues to be available to a qualified property. 20
(3) Notwithstanding § 5–707(d) of the Economic Development Article but 21
subject to § 5–707(b) and (c) of the Economic Development Article, a business entity 22
operating in an enterprise zone when the designation of the enterprise zone expires may 23
claim the credits allowed under this section for real property that: 24
(i) the business owns, operates, develops, constructs, or 25
rehabilitates within 5 years after the date the designation of the enterprise zone expired; 26
and 27
(ii) otherwise qualifies for the credits allowed under this section. 28
(4) State property tax imposed on real property is not affected by this 29
section. 30
(5) NO NEW PROPERTIES MAY Q UALIFY OR BE AWARDED TAX CREDITS 31
AFTER JUNE 30, 2025. 32
HOUSE BILL 352 111
(f) When an enterprise zone is designated by the Secretary of Commerce, the 1
appropriate governing body shall certify to the Department of Assessments and Taxation: 2
(1) the real properties in the enterprise zone that are qualified properties 3
for each taxable year for which the property tax credit under this section is to be granted; 4
and 5
(2) the date that the real properties became qualified properties. 6
(3) NO PROPERTIES MAY BE DESIGNATED AS QUALIF IED PROPERTIES 7
AFTER JUNE 30, 2025. 8
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 9
as follows: 10
Article – Tax – General 11
10–105. 12
(a) (1) For an individual other than an individual described in paragraph (2) 13
of this subsection, the State income tax rate is: 14
(i) [2%] 4.7% of Maryland taxable income of $1 through [$1,000] 15
$100,000; 16
(ii) [3% of Maryland taxable income of $1,001 through $2,000; 17
(iii) 4% of Maryland taxable income of $2,001 through $3,000; 18
(iv) 4.75% of Maryland taxable income of $3,001 through $100,000; 19
(v)] 5% of Maryland taxable income of $100,001 through $125,000; 20
[(vi)] (III) 5.25% of Maryland taxable income of $125,001 through 21
$150,000; 22
[(vii)] (IV) 5.5% of Maryland taxable income of $150,001 through 23
$250,000; [and 24
(viii)] (V) 5.75% of Maryland taxable income [in excess of $250,000] 25
OF $250,001 THROUGH $500,000; 26
(VI) 6.25% OF MARYLAND TAXABLE INCO ME OF $500,001 27
THROUGH $1,000,000; AND 28
112 HOUSE BILL 352
(VII) 6.50% OF MARYLAND TAXABLE INCO ME IN EXCESS OF 1
$1,000,000. 2
(2) For spouses filing a joint return or for a surviving spouse or head of 3
household as defined in § 2 of the Internal Revenue Code, the State income tax rate is: 4
(i) [2%] 4.7% of Maryland taxable income of $1 through [$1,000] 5
$150,000; 6
(ii) [3% of Maryland taxable income of $1,001 through $2,000; 7
(iii) 4% of Maryland taxable income of $2,001 through $3,000; 8
(iv) 4.75% of Maryland taxable income of $3,001 through $150,000; 9
(v)] 5% of Maryland taxable income of $150,001 through $175,000; 10
[(vi)] (III) 5.25% of Maryland taxable income of $175,001 through 11
$225,000; 12
[(vii)] (IV) 5.5% of Maryland taxable income of $225,001 through 13
$300,000; [and 14
(viii)] (V) 5.75% of Maryland taxable income [in excess of $300,000] 15
OF $300,001 THROUGH $600,000; 16
(VI) 6.25% OF MARYLAND TAXABLE INCO ME OF $600,001 17
THROUGH $1,200,000; AND 18
(VII) 6.50% OF MARYLAND TAXABLE INCO ME IN EXCESS OF 19
$1,200,000. 20
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 21
PARAGRAPH , IF THE MARYLAND TAXABLE INCO ME OF AN INDIVIDUAL DESCRIBED 22
IN PARAGRAPH (1) OR (2) OF THIS SUBSECTION I NCLUDES ANY AMOUNT O F NET 23
CAPITAL GAIN, AS DEFINED AND DETER MINED UNDER THE INTERNAL REVENUE 24
CODE, THE STATE INCOME TAX FOR THE INDIVIDUAL IS TH E SUM OF: 25
1. THE RATES SPECIFIED IN PARAGRAPH (1) OR (2) OF 26
THIS SUBSECTION APPL IED TO MARYLAND TAXABLE INCO ME; AND 27
2. AN ADDITIONAL 1% OF THE AMOUNT OF NET CAPITAL 28
GAIN INCLUDED IN THE INDIVIDUAL’S MARYLAND TAXABLE INCO ME. 29
HOUSE BILL 352 113
(II) TO THE EXTENT INCLUDE D IN CALCULATING NET CAPITAL 1
GAIN FOR FEDERAL INC OME TAX PURPOSES , ANY AMOUNT OF CAPITA L GAIN FROM 2
THE SALE OR EXCHANGE OF THE FOLLOWING ASS ETS IS NOT SUBJECT T O THE 3
ADDITIONAL 1% TAX RATE SPECIFIED I N SUBPARAGRAPH (I)2 OF THIS PARAGRA PH: 4
1. ANY RESIDENTIAL DWEL LING SOLD FOR LESS T HAN 5
$1,500,000 THAT IS THE INDIVIDU AL’S PRIMARY RESIDENCE , INCLUDING THE LAND 6
ON WHICH THE DWELLIN G IS LOCATED AND ANY ACCESSORY DWELLING U NIT 7
ASSOCIATED WITH THE RESIDENCE, IF THE DWELLING IS A SINGLE–FAMILY HOME, A 8
TOWN HOUSE , A ROW HOME , A RESIDENTIAL CONDOM INIUM UNIT, OR A 9
RESIDENTIAL COOPERAT IVE UNIT; 10
2. ASSETS HELD IN: 11
A. A CASH OR DEFERRED A RRANGEMENT PLAN UNDE R § 12
401(K) OF THE INTERNAL REVENUE CODE; 13
B. A TAX–SHELTERED ANNUITY OR CUSTODIAL ACCOUNT 14
UNDER § 403(B) OF THE INTERNAL REVENUE CODE; 15
C. A DEFERRED COMPENSAT ION PLAN UNDER § 457(B) 16
OF THE INTERNAL REVENUE CODE; 17
D. AN INDIVIDUAL RETIRE MENT ACCOUNT OR 18
INDIVIDUAL RETIREMEN T ANNUITY UNDER § 408 OF THE INTERNAL REVENUE 19
CODE; 20
E. A ROTH INDIVIDUAL RETIR EMENT ACCOUNT UNDER § 21
408A OF THE INTERNAL REVENUE CODE; OR 22
F. A DEFINED CONTRIBUTI ON PLAN, A DEFINED BENEFIT 23
PLAN, OR A SIMILAR RETIREM ENT SAVINGS PLAN ; 24
3. CATTLE, HORSES, OR BREED ING LIVESTOCK HELD 25
FOR MORE THAN 12 MONTHS IF, FOR THE TAXABLE YEAR OF THE SALE OR 26
EXCHANGE, MORE THAN 50% OF THE INDIVIDUAL ’S GROSS INCOME FOR T HE 27
TAXABLE YEAR , INCLUDING INCOME FRO M THE SALE OR EXCHAN GE OF CAPITAL 28
ASSETS, IS FROM FARMING OR R ANCHING; 29
4. LAND THAT IS SUBJECT TO A CONSERVATION , 30
AGRICULTURAL , OR FOREST PRESERVATI ON EASEMENT OR THAT WILL BE SUBJECT 31
TO A CONSERVATION , AGRICULTURAL , OR FOREST PRESERVATI ON EASEMENT ON 32
THE SALE OR EXCHANGE OF THE LAND; 33 114 HOUSE BILL 352
5. PROPERTY USED IN A T RADE OR BUS INESS, THE COST 1
OF WHICH IS DEDUCTIB LE UNDER § 179 OF THE INTERNAL REVENUE CODE; OR 2
6. AFFORDABLE HOUSING O WNED BY A NONPROFIT 3
ORGANIZATION . 4
(4) THE PROVISIONS OF PAR AGRAPH (3) OF THIS SUBSECTION S HALL 5
APPLY FOR TAXABLE YE ARS 2025 THROUGH 2028 FOR INDIVIDUALS DESCRIBE D IN 6
PARAGRAPH (1) OR (2) OF THIS SUBSECTION W ITH A FEDERAL ADJUST ED GROSS 7
INCOME IN EXCESS OF $350,000. 8
(b) The State income tax rate for a [corporation is 8.25% of Maryland taxable 9
income] CORPORATION ’S MARYLAND TAXABLE INCO ME IS: 10
(1) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2024, 11
BUT BEFORE JANUARY 1, 2027, 8.25%; 12
(2) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2026, 13
BUT BEFORE JANUARY 1, 2028, 8.12%; AND 14
(3) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2027, 15
7.99%. 16
10–217. 17
(a) [(1) (i) Except as otherwise provided in this subsection, an individual 18
may elect to use the standard deduction to compute Maryland taxable income whether or 19
not the individual itemizes deductions on the individual’s federal income tax return in 20
determining federal taxable income. 21
(ii) If an individual elects to use the standard deduction on the 22
federal income tax return, the individual may not take any itemized deduction in § 10–218 23
of this subtitle. 24
(2) A fiduciary may not use the standard deduction. 25
(b) Subject to the limitation in subsection (c) of this section, the standard 26
deduction for an individual is an amount equal to 15% of the individual’s Maryland adjusted 27
gross income. 28
(c)] (1) For an individual other than one described in paragraphs (2) and (3) of 29
this subsection, the standard deduction[: 30
(i) may not be less than $1,500; and 31 HOUSE BILL 352 115
(ii) may not exceed $2,250] IS $5,600. 1
(2) For an individual described in § 2 of the Internal Revenue Code as a 2
head of household or as a surviving spouse, the standard deduction[: 3
(i) may not be less than $3,000; and 4
(ii) may not exceed $4,500] IS $11,200. 5
(3) For spouses on a joint return, the standard deduction[: 6
(i) may not be less than $3,000; and 7
(ii) may not exceed $4,500] IS $11,200. 8
[(d)] (B) (1) For each taxable year beginning after December 31, 2018, [each 9
minimum and maximum ] THE standard deduction [limitation] amount specified in 10
subsection [(c)] (A) of this section shall be increased by an amount equal to the product of 11
multiplying the [minimum and maximum] standard deduction [limitation] amount by the 12
cost–of–living adjustment specified in this subsection. 13
(2) For purposes of this subsection, the cost–of–living adjustment is the 14
cost–of–living adjustment within the meaning of § 1(f)(3) of the Internal Revenue Code for 15
the calendar year in which a taxable year begins, as determined by the Comptroller, by 16
substituting “calendar year 2017” for “calendar year 2016” in § 1(f)(3)(A) of the Internal 17
Revenue Code. 18
(3) If any increase determined under paragraph (1) of this subsection is not 19
a multiple of $50, the increase shall be rounded down to the next lowest multiple of $50. 20
[10–218. 21
(a) Only an individual who itemizes deductions on the individual’s federal income 22
tax return may elect to itemize deductions on the individual’s income tax return. 23
(b) An individual who elects to itemize deductions is allowed as a deduction the 24
sum of the individual’s federal itemized deductions: 25
(1) limited and reduced as required under the Internal Revenue Code; 26
(2) further reduced by any amount deducted under § 170 of the Internal 27
Revenue Code for contributions of a preservation or conservation easement for which a 28
credit is claimed under § 10–723 of this title; and 29
116 HOUSE BILL 352
(3) further reduced by the amount claimed as taxes on income paid to a 1
state or political subdivision of a state, after subtracting a pro rata portion of the reduction 2
to itemized deductions required under § 68 of the Internal Revenue Code.] 3
10–219. 4
(a) A nonresident may claim and shall include only the part attributable to 5
Maryland, as determined under this section, of: 6
(1) the subtractions from federal adjusted gross income under § 10–208 of 7
this subtitle; 8
(2) the deduction for exemptions under § 10–211 or § 10–212 of this 9
subtitle; and 10
(3) [(i)] the standard deduction under § 10–217 of this subtitle[; or 11
(ii) itemized deductions under § 10–218 of this subtitle]. 12
(b) Unless the Comptroller requires or allows another method to compute the 13
items listed in subsection (a) of this section, a nonresident shall prorate the items using a 14
fraction: 15
(1) the numerator of which is the Maryland adjusted gross income of the 16
nonresident; and 17
(2) the denominator of which is the federal adjusted gross income of the 18
nonresident. 19
10–220. 20
(a) An individual who is a resident of the State for only a part of the taxable year 21
may claim and shall include only the part attributable to Maryland, as determined under 22
this section, of: 23
(1) the additions to federal adjusted gross income under § 10–204 of this 24
subtitle; 25
(2) the subtractions from federal adjusted gross income under §§ 10–207 26
through 10–209 of this subtitle; 27
(3) the deduction for exemptions under § 10–211 or § 10–212 of this 28
subtitle; and 29
(4) [(i)] the standard deduction under § 10–217 of this subtitle[; or 30
(ii) itemized deductions under § 10–218 of this subtitle]. 31 HOUSE BILL 352 117
(b) Unless the Comptroller requires or allows another method to compute the 1
items listed in subsection (a) of this section, an individual who is a resident for only a part 2
of the taxable year shall prorate the items using a fraction: 3
(1) the numerator of which is the number of months in which the individual 4
was a resident; and 5
(2) the denominator of which is 12. 6
(c) An individual who is a resident for a period of more than 15 days in a month 7
is deemed to be a resident for the full month. 8
10–751. 9
(a) (1) In this section the following words have the meanings indicated. 10
(2) “Qualified child” means a dependent of a taxpayer, if the dependent: 11
(i) is a dependent for purposes of § 152 of the Internal Revenue 12
Code; and 13
(ii) 1. is under the age of 6 years; or 14
2. A. is under the age of 17 years; and 15
B. is a child with a disability, as defined under § 8–401 of the 16
Education Article. 17
(3) “Taxpayer” means: 18
(i) an individual filing an income tax return; or 19
(ii) a married couple filing a joint income tax return. 20
(b) A taxpayer who is a resident and has federal adjusted gross income [for the 21
taxable year of $15,000 or less may claim a credit against the State income tax for each 22
qualified child in an amount equal to $500] LOWER THAN THE THRES HOLD AMOUNT OF 23
$15,000 MAY CLAIM A CREDIT AGAIN ST THE STATE INCOME TAX FOR EACH 24
QUALIFIED CHILD IN A N AMOUNT EQUAL TO $500. 25
(C) THE AMOUNT OF THE CRE DIT SHALL BE REDUCED BY $50 FOR EACH 26
$1,000, OR FRACTION THEREOF , BY WHICH THE TAXPAYE R’S FEDERAL ADJUSTED 27
GROSS INCOME EXCEEDS THE THRESHOLD AMOUNT , EXCEPT THAT THE REDU CTION 28
CANNOT REDUCE THE CR EDIT BELOW ZERO . 29
118 HOUSE BILL 352
[(c)] (D) If the credit allowed under this section in any taxable year exceeds the 1
State income tax for that taxable year, the taxpayer may claim a refund in the amount of 2
the excess. 3
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4
as follows: 5
Article – Tax – General 6
2–1302.2. 7
After making the distributions required under §§ 2–1301 through 2–1302.1 of this 8
subtitle, of the sales and use tax collected under § 11–104(k) of this article from the sale of 9
cannabis, as defined in § 1–101 of the Alcoholic Beverages and Cannabis Article, the 10
Comptroller quarterly shall distribute: 11
(1) 60% OF THE REVENUES AS F OLLOWS: 12
[(1)] (I) to the Cannabis Regulation and Enforcement Fund, established 13
under § 36–206 of the Alcoholic Beverages and Cannabis Article, an amount necessary to 14
defray the entire cost of the operations and administrative expenses of the Maryland 15
Cannabis Administration established under Title 36 of the Alcoholic Beverages and 16
Cannabis Article; 17
[(2)] (II) after making the distribution required under item [(1)] (I) of this 18
[section] ITEM: 19
[(i)] 1. 35% to the Community Reinvestment and Repair Fund 20
under § 1–322 of the Alcoholic Beverages and Cannabis Article for fiscal years 2024 through 21
2033; 22
[(ii)] 2. 5% to counties, which shall be allocated to each county 23
based on the percentage of revenue collected from that county, except that a county shall 24
distribute to a municipality located in the county 50% of the allocation received under this 25
item that is attributable to the sales and use tax revenue generated by a dispensary located 26
in that municipality; 27
[(iii)] 3. 5% to the Cannabis Public Health Fund established under 28
§ 13–4505 of the Health – General Article; and 29
[(iv)] 4. for fiscal years 2024 through 2028, 5% to the Cannabis 30
Business Assistance Fund established under § 5–1901 of the Economic Development 31
Article; and 32
[(3)] (III) any balance remaining after the distributions required under 33
items [(1) and (2)] (I) AND (II) of this [section] ITEM to the General Fund of the State; AND 34 HOUSE BILL 352 119
(2) 40% OF THE REVENUE TO TH E GENERAL FUND OF THE STATE. 1
11–104. 2
(k) The sales and use tax rate for cannabis, as defined in § 1–101 of the Alcoholic 3
Beverages and Cannabis Article is[, for fiscal year 2024 and each fiscal year thereafter, 4
9%]: 5
(1) FOR FISCAL YEARS 2024 THROUGH 2026, 9%; AND 6
(2) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, 7
15%. 8
SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 9
as follows: 10
Article – Tax – General 11
10–402.1. 12
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 13
INDICATED. 14
(2) “COMBINED GROUP ” MEANS A GROUP OF CORPORATIONS : 15
(I) THAT IS ENGAGED IN A UNITARY BUSINESS ; 16
(II) IN WHICH MORE THAN 50% OF THE VOTING STOCK OF EACH 17
MEMBER IS DIRECTLY O R INDIRECTLY OWNED B Y: 18
1. A COMMON OWNER OR CO MMON OWNERS , EITHER 19
CORPORATE OR NONCORP ORATE; OR 20
2. ONE OR MORE MEMBER CORPORAT IONS OF THE 21
GROUP; 22
(III) THE MEMBERS OF WHICH ARE SUBJECT TO THE I NCOME TAX 23
OR WOULD BE SUBJECT TO THE INCOME TAX IF DOING BUSINESS IN TH E STATE; AND 24
(IV) CONSISTING OF ANY OT HER MEMBERS UNDER TH E 25
CIRCUMSTANCES AND TO THE EXTEN T PROVIDED IN REGULA TIONS ADOPTED BY 26
THE COMPTROLLER TO PREVEN T THE AVOIDANCE OF T AX OR TO REFLECT CLE ARLY 27
THE INCOME OF ANY ME MBER OF THE COMBINED GROUP FOR ANY PERIOD . 28
120 HOUSE BILL 352
(3) “COMBINED RETURN ” MEANS A TAX RETURN F OR THE COMBINED 1
GROUP CONTAINING INF ORMATION AS PROVIDED IN T HIS SECTION OR OTHER WISE 2
REQUIRED BY THE COMPTROLLER . 3
(4) “UNITARY BUSINESS ” MEANS A SINGLE ECONO MIC ENTERPRISE 4
THAT IS MADE EITHER OF SEPARATE PARTS OF A SINGLE BUSINESS EN TITY OR OF A 5
COMMONLY CONTROLLED GROUP OF BUSINESS EN TITIES THAT ARE SUFFICIENTL Y 6
INTERDEPENDENT , INTEGRATED, AND INTERRELATED THR OUGH THEIR ACTIVITIE S 7
SO AS TO PROVIDE MUT UAL BENEFIT THAT PRO DUCES A SHARING OR E XCHANGE OF 8
VALUE AMONG THEM AND A SIGNIFICANT FLOW O F VALUE TO THE SEPAR ATE PARTS. 9
(B) (1) THE TERM “UNITARY BUSINESS ” SHALL BE CONSTRUED T O THE 10
BROADEST EXTENT ALLO WED UNDER THE U.S. CONSTITUTION. 11
(2) A BUSINESS CONDUCTED D IRECTLY OR INDIRECTL Y BY ONE 12
CORPORATION IS A UNI TARY BUSINESS WITH R ESPECT TO THAT PORTI ON OF A 13
BUSINESS CONDUCTED B Y ANOTHER CORP ORATION THROUGH ITS DIRECT OR 14
INDIRECT INTEREST IN A PARTNERSHIP IF THE REQUIREMENTS OF SUBS ECTION 15
(A)(4) OF THIS SECTION ARE SATISFIED, INCLUDING IF THERE I S SYNERGY AND AN 16
EXCHANGE AND FLOW OF VALUE BETWEEN THE TW O PARTS OF THE BUSIN ESS AND 17
THE TWO CORPO RATIONS ARE MEMBERS OF THE SAME COMMONLY CONTROLLED 18
GROUP. 19
(3) A BUSINESS CONDUCTED B Y A PARTNERSHIP SHAL L BE TREATED 20
AS CONDUCTED BY ITS PARTNERS, WHETHER DIRECTLY HEL D OR INDIRECTLY HELD 21
THROUGH A SERIES OF PARTNERSHIPS , TO THE EXTENT OF THE PARTNER’S 22
DISTRIBUTIVE SHARE O F THE PARTNERSHIP ’S INCOME, REGARDLESS OF THE 23
PERCENTAGE OF THE PA RTNER’S OWNERSHIP INTEREST OR ITS DISTRIBUTIVE OR 24
ANY OTHER SHARE OF P ARTNERSHIP INCOME . 25
(C) (1) EXCEPT AS PROVIDED BY AND SUBJECT TO REGUL ATIONS 26
ADOPTED BY THE COMPTROLLER, FOR ALL TAXABLE YEAR S BEGINNING AFTER 27
DECEMBER 31, 2027, A CORPORATION ENGAGE D IN A UNITARY BUSIN ESS SHALL 28
FILE A COMBINED RETU RN, REPORTING AND PAYING TAX ON WORLDWIDE TAX ABLE 29
INCOME AS A COMBINED GROUP, REFLECTING THE AGGRE GATE INCOME TAX 30
LIABILITY OF ALL MEMBERS OF THE COMBINED GROUP T HAT ARE ENGAGED IN A 31
UNITARY BUSINESS . 32
(2) THE TAXABLE INCOME OF A CORPORATION REQUIR ED TO FILE 33
UNDER § 10–811(A)(2) OF THIS TITLE IS EQU AL TO THE COMBINED G ROUP’S 34
MARYLAND MODIFIED INC OME AS ADJUSTED UNDE R SUBSECTION (D)(3) OF THIS 35
SECTION. 36
(D) (1) THE MARYLAND MODIFIED INC OME OF THE COMBINED GROUP 37 HOUSE BILL 352 121
EQUALS THE PRODUCT O F: 1
(I) THE COMBINED GROUP ’S APPORTIONABLE MARYLAND 2
MODIFIED INCOME , AS DETERMINED UNDER PARAGRAPH (2) OF THIS SUBSECTION 3
AND ADJUSTED UNDER PARAGRAPH (3) OF THIS SUBSECTION ; AND 4
(II) THE COMBINED GROUP ’S MARYLAND APPORTIONMEN T 5
FACTOR, AS DETERMINED UNDER PARAGRAPH (4) OF THIS SUBSECTION . 6
(2) (I) SUBJECT TO SUBPARAGRA PHS (II) THROUGH (IV) OF THIS 7
PARAGRAPH , THE APPORTIONABLE MARYLAND MOD IFIED INCOME OF THE 8
COMBINED GROUP EQUAL S THE SUM OF THE COR PORATION’S AND EACH MEMBER ’S 9
MARYLAND MODIFIED INC OME. 10
(II) 1. SUBJECT TO SUBSUBPARA GRAPH 2 OF THIS 11
SUBPARAGRAPH , FOR ANY MEMBER INCOR PORATED IN THE UNITED STATES OR 12
INCLUDED IN A CONSOL IDATED FEDERAL CORPORATE IN COME TAX RETURN , THE 13
INCOME TO BE INCLUDE D IN THE TOTAL APPOR TIONABLE INCOME OF T HE 14
COMBINED GROUP IS TH E MARYLAND MODIFIED INC OME AS CALCULATED UN DER § 15
10–304 OF THIS TITLE. 16
2. THE INCOME OF EACH ME MBER SHALL BE 17
CALCULATED ON A S EPARATE RETURN BASIS AS IF THE MEMBER WER E NOT 18
CONSOLIDATED FOR FED ERAL INCOME TAX PURP OSES. 19
(III) 1. FOR ANY MEMBER NOT IN CLUDED UNDER 20
SUBPARAGRAPH (II) OF THIS PARAGRAPH , THE INCOME TO BE INC LUDED IN THE 21
TOTAL INCOME OF THE COMBINED GROUP IS DE TERMINED AS PROVIDED UNDER 22
THIS SUBPARAGRAPH . 23
2. A PROFIT AND LOSS STAT EMENT SHALL BE PREPA RED 24
FOR EACH FOREIGN BRA NCH OR CORPORATION I N THE CURRENCY IN WH ICH THE 25
BOOKS OF ACCOUNT OF THE BRANCH OR CORPOR ATION ARE REGULARLY 26
MAINTAINED. 27
3. THE PROFIT AND LOSS STATEMENT SHALL BE 28
ADJUSTED TO CONFORM TO GENERALLY ACCEPTE D ACCOUNTING PRINCIP LES AS 29
ADOPTED BY THE U.S. FINANCIAL ACCOUNTING STANDARDS BOARD FOR THE 30
PREPARATION OF THE P ROFIT AND LOSS STATE MENTS, EXCEPT AS MODIFIED B Y 31
REGULATION . 32
4. EXCEPT AS OTHERWISE PROVIDED B Y REGULATION , 33
THE PROFIT AND LOSS STATEMENT OF EACH ME MBER OF THE COMBINED GROUP, 34
AND THE APPORTIONMEN T FACTORS RELATED TO EACH STATEMENT , WHETHER 35 122 HOUSE BILL 352
UNITED STATES OR FOREIGN , SHALL BE TRANSLATED INTO THE CURRENCY IN 1
WHICH THE PARENT COM PANY MAINTAINS ITS BOO KS AND RECORDS . 2
5. INCOME APPORTIONED TO THE STATE SHALL BE 3
EXPRESSED IN UNITED STATES DOLLARS . 4
(IV) IF A UNITARY BUSINESS INCLUDES INCOME FROM A 5
PARTNERSHIP , THE INCOME TO BE INC LUDED IN THE TOTAL I NCOME OF THE 6
COMBINED GROUP EQUALS THE DIRECT AN D INDIRECT DISTRIBUT IVE SHARE OF 7
THE PARTNERSHIP ’S UNITARY BUSINESS I NCOME ALLOCATED TO A NY MEMBER OF 8
THE COMBINED GROUP . 9
(3) THE COMBINED GROUP ’S APPORTIONABLE MARYLAND MODIFIED 10
INCOME SHALL BE ADJU STED TO ELIMINATE IN TERCOMPANY TRA NSACTIONS AS 11
DETERMINED UNDER THE INTERNAL REVENUE CODE. 12
(4) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 13
COMBINED GROUP ’S MARYLAND APPORTIONMEN T FACTOR IS A FRACTI ON: 14
1. THE NUMERATOR OF WHI CH IS THE SUM OF THE 15
CORPORATION ’S AND EACH MEMBER’S MARYLAND FACTORS UNDE R § 10–402 OF 16
THIS SUBTITLE; AND 17
2. THE DENOMINATOR OF W HICH IS THE SUM OF T HE 18
CORPORATION ’S AND EACH MEMBER ’S FACTORS UNDER § 10–402 OF THIS SUBTITLE. 19
(II) THE APPORTIONMENT FAC TORS OF PASS –THROUGH 20
ENTITY MEMBERS ARE INCLUDED IN THE NUME RATOR UNDER SUBPARAG RAPH (I)1 21
OF THIS PARAGRAPH AN D THE DENOMINATOR UN DER SUBPARAGRAPH (I)2 OF THIS 22
PARAGRAPH TO THE EXT ENT OF THE CORPORATI ON’S DIRECT AND INDIREC T 23
DISTRIBUTIVE SHARE O F THAT ENTITY. 24
(E) (1) SUBJECT TO REGULATION S ADOPTED BY THE COMPTROLLER , A 25
CORPORATION THAT IS PART OF A COMBINED GROUP MAY ELECT TO DETERMINE ITS 26
INCOME DERIVED FROM OR ATTRIBUTABLE TO T RADE OR BUSINESS IN THE STATE 27
USING THE WATER ’S EDGE METHOD AS DES CRIBED IN THIS SUBSE CTION. 28
(2) UNDER THE WATER ’S EDGE METHOD , THE COMBINED GROUP FOR 29
PURPOSES OF THE COMB INED REPORTING METHO D REQUIRED UNDER THI S 30
SECTION SHALL INCLUD E ONLY THE FOLLOWING AFFILIATED ENTITIES : 31
(I) CORPORATIONS THAT AR E INCORPORATED IN TH E UNITED 32
STATES, EXCLUDING CORPORATIO NS MAKING AN ELECTION UNDER §§ 931 33
THROUGH 934 OF THE INTERNAL REVENUE CODE; 34 HOUSE BILL 352 123
(II) DOMESTIC INTERNATION AL SALES CORPORATION S, AS 1
DESCRIBED IN §§ 991 THROUGH 994 OF THE INTERNAL REVENUE CODE; 2
(III) ANY CORPORATION OTHE R THAN A BANK , REGARDLESS OF 3
THE PLACE WH ERE IT IS INCORPORAT ED, IF THE AVERAGE OF TH E CORPORATION ’S 4
PROPERTY, PAYROLL, AND SALES FACTORS WI THIN THE UNITED STATES IS 20% OR 5
MORE; 6
(IV) EXPORT TRADE CORPORA TIONS, AS DESCRIBED IN §§ 970 7
AND 971 OF THE INTERNAL REVENUE CODE; 8
(V) A FOREIGN COR PORATION DERIVING GA IN OR LOSS FROM 9
DISPOSITION OF AN IN TEREST IN REAL PROPE RTY IN THE UNITED STATES TO THE 10
EXTENT RECOGNIZED UN DER § 897 OF THE INTERNAL REVENUE CODE; AND 11
(VI) UNDER THE CIRCUMSTAN CES AND TO THE EXTEN T 12
PROVIDED BY REGULATI ONS THAT THE COMPTROLLER ADOPTS : 13
1. A CORPORATION NOT DE SCRIBED IN ITEMS (I) 14
THROUGH (V) OF THIS PARAGRAPH TO THE EXTENT OF THE CO RPORATION’S INCOME 15
DERIVED FROM OR ATTR IBUTABLE TO SOURCES WITHIN THE UNITED STATES AND 16
THE CORPORATION ’S FACTORS ASSIGNABLE TO A LOCATION WITHIN THE UNITED 17
STATES; OR 18
2. AN AFFILIATED CORPOR ATION THAT IS A 19
CONTROLLED FOREIGN C ORPORATION , AS DEFINED IN § 957 OF THE INTERNAL 20
REVENUE CODE. 21
(3) THE USE OF THE WATER ’S EDGE METHOD IS SUB JECT TO THE 22
TERMS AND CONDITIONS THAT THE COMPTROLLER REQUIRES BY REGULATION , 23
INCLUDING ANY CONDIT IONS THAT ARE NECESS ARY OR APPROPRIATE T O PREVENT 24
THE AVOIDANCE OF TAX OR TO REFLECT CLEARL Y THE INCOME FOR ANY PERIOD. 25
(F) (1) (I) AN ELECTION TO USE TH E WATER’S EDGE METHOD IN 26
ACCORDANCE WITH SUBSECTION (E) OF THIS SECTION IS E FFECTIVE ONLY IF MAD E 27
ON A TIMELY FILED OR IGINAL RETURN FOR A TAX YEAR BY EVERY ME MBER OF THE 28
UNITARY BUSINESS . 29
(II) THE COMPTROLLER SHALL DEV ELOP REGULATIONS 30
GOVERNING THE IMPACT , IF ANY, ON THE SCOPE OR APPL ICATION OF AN ELECTION 31
TO USE THE WATER ’S EDGE METHOD , INCLUDING TERMINATIO N OR DEEMED 32
ELECTION, RESULTING FROM A CHA NGE IN THE COMPOSITI ON OF THE UNITARY 33
BUSINESS, THE COMBINED GROUP , THE TAXPAYER MEMBERS , OR ANY OTHER 34 124 HOUSE BILL 352
SIMILAR CHANGE . 1
(2) AN ELECTION TO USE TH E WATER’S EDGE METHOD SHALL 2
CONSTITUTE CONSENT T O THE REASONABLE PRO DUCTION OF DOCUMENTS AND 3
TAKING OF DEPOSITION S IN ACCORDANCE WITH THE MARYLAND RULES. 4
(3) AT THE DISCRETION OF THE COMPTROLLER , AN ELECTION TO 5
USE THE WATER ’S EDGE METHOD MAY BE DISREGARDED IN PART OR IN W HOLE, AND 6
THE INCOME AND APPOR TIONMENT FACTORS OF ANY MEMBER OF THE TA XPAYER’S 7
UNITARY GROUP MAY BE INCLUDED IN THE COMB INED REPORT WITHOUT REGARD 8
TO THE PROVISIONS OF THIS SECTION, IF ANY MEMBER OF THE UNITARY GROUP 9
FAILS TO COMPLY WIT H ANY PROVISION OF T HIS SECTION OR IF A PERSON 10
OTHERWISE NOT INCLUD ED IN THE WATER ’S EDGE COMBINED GROU P WAS AVAILED 11
OF A SUBSTANTIAL OBJ ECTIVE OF AVOIDING STATE INCOME TAX . 12
(4) (I) SUBJECT TO SUBPARAGRA PHS (II) THROUGH (IV) OF THIS 13
PARAGRAPH , AN ELECTION TO USE THE WATER ’S EDGE METHOD IS BIN DING FOR 14
AND APPLICABLE TO TH E TAXABLE YEAR IN WH ICH THE ELECTION IS MADE AND ALL 15
TAXABLE YEARS THEREA FTER FOR A PERIOD OF 10 YEARS. 16
(II) AN ELECTION TO USE TH E WATER’S EDGE METHOD MAY BE 17
WITHDRAWN OR REINSTI TUTED AFTER WITHDRAWAL , BEFORE THE EXPIRATIO N OF 18
THE 10–YEAR PERIOD, ONLY ON WRITTEN REQU EST FOR REASONABLE C AUSE AND 19
ONLY WITH THE WRITTE N PERMISSION OF THE COMPTROLLER . 20
(III) IF THE COMPTROLLER GRANTS A WITHDRAWAL OF THE 21
ELECTION UNDER SUBPA RAGRAPH (II) OF THIS PARAGRAPH , THE COMPTROLLER 22
SHALL IMPOSE REASONA BLE CONDITIONS AS NE CESSARY TO PREVENT T HE EVASION 23
OF TAX OR TO CLEARLY REFLECT INCOME FOR T HE ELECTION PERIOD B EFORE OR 24
AFTER THE WITHDRAWAL . 25
(IV) 1. SUBJECT TO SUBSUBPARA GRAPH 2 OF THIS 26
SUBPARAGR APH, ON THE EXPIRATION OF THE 10–YEAR PERIOD, A TAXPAYER MAY 27
WITHDRAW FROM THE EL ECTION TO USE THE WA TER’S EDGE METHOD . 28
2. THE WITHDRAWAL SHALL BE MADE IN WRITING 29
WITHIN 1 YEAR BEFORE THE EXPI RATION OF THE ELECTI ON AND IS BINDING FO R A 30
PERIOD OF 10 YEARS, SUBJECT TO THE SAME CONDITIONS AS APPLIE D TO THE 31
ORIGINAL ELECTION . 32
3. IF NO WITHDRAWAL IS P ROPERLY MADE UNDER T HIS 33
SUBPARAGRAPH , THE ELECTION TO USE THE WATER ’S EDGE METHOD SHALL 34
REMAIN IN EFFECT FOR AN ADDITIONAL 10–YEAR PERIOD, SUBJECT TO THE SAME 35
CONDITIONS AS APPLIE D TO THE ORIGINAL EL ECTION. 36 HOUSE BILL 352 125
(G) (1) THE COMPTROLLER SHALL ADO PT REGULATIONS THAT ARE 1
NECESSARY AND APPROP RIATE TO CARRY OUT T HIS SECTION. 2
(2) THE REGULATIONS ADOPT ED BY THE COMPTROLLER SHALL BE 3
CONSISTENT WITH THE “PRINCIPLES FOR DETERMINING THE EXISTENCE OF A 4
UNITARY BUSINESS” (REG. IV.1.(B)) OF THE MODEL GENERAL ALLOCATION AND 5
APPORTIONMENT REGULATIONS, AS ADOPTED BY THE MULTISTATE TAX 6
COMMISSION. 7
10–811. 8
(A) (1) [Each member of] EXCEPT AS PROVIDED BY AND SUBJECT TO 9
REGULATIONS ADOPTED BY THE COMPTROLLER , an affiliated group of corporations 10
[shall file a separate income tax return] ENGAGED IN A UNITARY BUSINESS SHALL FILE 11
A COMBINED INCOME TA X RETURN REFLECTING THE AGGREGATE INCOME TAX 12
LIABILITY OF ALL THE MEMBERS OF THE AFFILIATED GROUP THAT ARE ENGAGED IN 13
A UNITARY BUSINESS . 14
(2) THE RETURN REQUIRED U NDER PARAGRAPH (1) OF THIS 15
SUBSECTION SHALL INC LUDE THE INCOME AND APPORTIONMENT FACTOR S 16
DETERMINED UNDER § 10–402.1(D) AND (E) OF THIS TITLE, AND ANY OTHER 17
INFORMATIO N REQUIRED BY THE COMPTROLLER , FOR ALL MEMBERS OF T HE 18
COMBINED GROUP WHERE VER LOCATED OR DOING BUSINESS. 19
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 20
PARAGRAPH , THE COMBINED RETURN SHALL BE FILED UNDER THE NAME AND 21
FEDERAL EMPLOYER IDE NTIFICATION NUMBER OF THE P ARENT CORPORATION IF 22
THE PARENT IS A MEMB ER OF THE COMBINED G ROUP. 23
(II) IF THERE IS NO PARENT CORPORATION OR IF TH E PARENT 24
IS NOT A MEMBER OF T HE COMBINED GROUP , THE MEMBERS OF THE C OMBINED 25
GROUP SHALL CHOOSE A MEMBER TO FILE THE R ETURN. 26
(III) THE FILING MEMBER UND ER SUBPARAGRAPH (I) OR (II) OF 27
THIS PARAGRAPH SHALL CONTINUE TO FILE THE COMBINED RETURN UNLE SS THE 28
FILING MEMBER IS NO LONGER THE PARENT CO RPORATION OR NO LONG ER A 29
MEMBER OF THE COMBIN ED GROUP. 30
(4) THE RETURN SHALL BE SIGNED BY A RESPO NSIBLE OFFICER OF 31
THE FILING MEMBER ON BEHALF OF THE COMBIN ED GROUP MEMBERS . 32
(5) MEMBERS OF THE COMBIN ED GROUP ARE JOINTLY AND 33
SEVERALLY LIABLE FOR THE TAX LIABILITY OF THE COMBINED GROUP I NCLUDED 34 126 HOUSE BILL 352
IN THE COMBINED RETU RN. 1
(B) (1) THE COMPTROLLER MAY , BY REGULATION , REQUIRE THAT THE 2
COMBINED RETURN INCL UDE THE INCOME AND A SSOCIATED APPORTIONM ENT 3
FACTORS OF ENTITIES THAT ARE NOT INCLUDE D IN THE COMBINED RE PORT BUT 4
THAT ARE MEMBERS OF A UNITARY BUSINESS I N ORDER TO REFLECT P ROPER 5
APPORTIONMENT OF INCOME O F THE ENTIRE UNITARY BUSINESS. 6
(2) IF THE COMPTROLLER DETERMINE S THAT THE REPORTED 7
INCOME OR LOSS OF A TAXPAYER ENGAGED IN A UNITARY BUSINESS W ITH A MEMBER 8
NOT INCLUDED IN THE COMBINED GROUP REPRE SENTS AN AVOIDANCE O R EVASION 9
OF TAX, THE COMPTROLLER MAY , ON A CASE–BY–CASE BASIS, REQUIRE THAT ALL 10
OR PART OF THE INCOM E AND ASSOCIATED APP ORTIONMENT FACTORS O F THE 11
MEMBER BE INCLUDED I N THE TAXPAYER ’S COMBINED RETURN . 12
(3) THE COMPTROLLER MAY REQUI RE: 13
(I) THE EXCLUSION OF ONE OR MORE FACTORS, THE 14
INCLUSION OF ONE OR MORE ADDITIONAL FACT ORS, OR THE EMPLOYMENT OF ANY 15
OTHER METHOD THAT WI LL FAIRLY REPRESENT THE TAXPAYER ’S BUSINESS IN THE 16
STATE; OR 17
(II) THE EMPLOYMENT OF AN Y OTHER METHOD TO EF FECTUATE 18
A PROPER REFLECTION OF THE TOTAL AMOUNT OF INCOME SUB JECT TO 19
APPORTIONMENT AND AN EQUITABLE ALLOCATION AND APPORTIONMENT OF THE 20
COMBINED GROUP ’S OR ITS MEMBERS ’ INCOME. 21
(C) THE COMPTROLLER SHALL ADO PT REGULATIONS THAT ARE 22
NECESSARY AND APPROP RIATE TO CARRY OUT T HIS SECTION. 23
SECTION 6. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 24
as follows: 25
Chapter 397 of the Acts of 2011, as amended by Chapter 425 of the Acts of 2013, 26
Chapter 464 of the Acts of 2014, Chapter 489 of the Acts of 2015, Chapter 23 of 27
the Acts of 2017, Chapter 10 of the Acts of 2018, Chapter 16 of the Acts of 2019, 28
Chapter 538 of the Acts of 2020, and Chapter 103 of the Acts of 2023 29
SECTION 16. AND BE IT FURTHER ENACTED, That, in addition to any other 30
revenue generated under § 19–214 of the Health – General Article, as amended by this Act: 31
(c) (1) For fiscal year 2015 and 2016, the Commission and the Maryland 32
Department of Health shall adopt policies that will provide up to $389,825,000 in special 33
fund revenues from hospital assessment and remittance revenue. 34
HOUSE BILL 352 127
(2) For fiscal year 2017, the Governor shall reduce the budgeted Medicaid 1
Deficit Assessment by $25,000,000 over the assessment level for the prior year. 2
(3) For fiscal year 2018, the budgeted Medicaid Deficit Assessment shall be 3
$364,825,000. 4
(4) For fiscal year 2019, the budgeted Medicaid Deficit Assessment shall be 5
$334,825,000. 6
(5) For fiscal year 2020, the budgeted Medicaid Deficit Assessment shall be 7
$309,825,000. 8
(6) [Except as provided in paragraph (7) of this subsection, for] FOR fiscal 9
[year 2021, and each fiscal year thereafter] YEARS 2021, 2022, AND 2023, the budgeted 10
Medicaid Deficit Assessment shall be $294,825,000. 11
(7) For fiscal year 2024 only, the budgeted Medicaid Deficit Assessment 12
shall be $244,825,000. 13
(8) (I) FOR FISCAL YEAR 2025, THE BUDGETED MEDICAID 14
DEFICIT ASSESSMENT SHALL BE $344,825,000. 15
(II) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 16
THEREAFTER , THE BUDGETED MEDICAID DEFICIT ASSESSMENT SHALL BE 17
$394,825,000. 18
(III) THE COMMISSION AND THE MARYLAND DEPARTMENT OF 19
HEALTH MAY ADOPT AN A LTERNATIVE METHOD TO ACHIEVE THE EQUIVALE NT 20
AMOUNT OF REVENUE AC ROSS THE 2 YEARS BY THE EN D OF FISCAL YEAR 2026. 21
[(8)] (9) To the extent that the Commission takes other actions that 22
reduce Medicaid costs, those savings shall also be used to reduce the budgeted Medicaid 23
Deficit Assessment. 24
[(9)] (10) To the maximum extent possible, the Commission and the 25
Maryland Department of Health shall adopt policies that preserve the State’s Medicare 26
waiver. 27
Chapter 260 of the Acts of 2023 28
SECTION 2. AND BE IT FURTHER ENACTED, That, for fiscal year 2025, the 29
Governor [shall] MAY include in the annual budget bill an appropriation of $12,000,000 to 30
the 9–8–8 Trust Fund established under § 7.5–5A–02 of the Health – General Article. 31
Chapter 261 of the Acts of 2023 32
128 HOUSE BILL 352
SECTION 2. AND BE IT FURTHER ENACTED, That, for fiscal year 2025, the 1
Governor [shall] MAY include in the annual budget bill an appropriation of $12,000,000 to 2
the 9–8–8 Trust Fund established under § 7.5–5A–02 of the Health – General Article. 3
Chapter 275 of the Acts of 2023 4
[SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Maryland Department of Health shall apply to the Substance Abuse and Mental 6
Health Services Administration at the Center for Mental Health Services for federal 7
planning, development, and implementation grant funds related to certified community 8
behavioral health clinics for fiscal year 2025.] 9
[SECTION 2. AND BE IT FURTHER ENACTED That the Maryland Department of 10
Health shall apply to the Substance Abuse and Mental Health Services Administration at 11
the Center for Mental Health Services for inclusion in the state certified community 12
behavioral health clinic demonstration program for fiscal year 2026.] 13
Chapter 717 of the Acts of 2024 14
SECTION 8. AND BE IT FURT HER ENACTED, That, notwithstanding any other 15
provision of law, and unless inconsistent with a federal law, grant agreement, or other 16
federal requirement, or with the terms of a gift or settlement agreement, for fiscal years 17
2024 through 2028, net interest on all State money allocated by the State Treasurer under 18
§ 6–226 of the State Finance and Procurement Article to special funds or accounts, and 19
otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall 20
accrue to the General Fund of the State, with the exception of the following funds: 21
[(42) Strategic Energy Investment Fund;] 22
SECTION 7. AND BE IT FURTHER ENACTED, That Section(s) 24 –204(d) of 23
Article – Education of the Annotated Code of Maryland be repealed. 24
SECTION 8. AND BE IT FURTHER ENACTED, That Section(s) 7 –717 of Article – 25
Health – General of the Annotated Code of Maryland be repealed. 26
SECTION 9. AND BE IT FURTHER ENACTED, That Section(s) 16 –503 of Article – 27
Local Government of the Annotated Code of Maryland be repealed. 28
SECTION 10. AND BE IT FURTHER ENACTED, That Section(s) 2 –701 and 2–702 29
and the subtitle “Subtitle 7. Inheritance Tax Revenue Distribution” and 7–201 through 30
7–234 and the subtitle “Subtitle 2. Inheritance Tax” of Article – Tax – General of the 31
Annotated Code of Maryland be repealed. 32
SECTION 11. AND BE IT FURTHER ENACTED, That Section(s) 10 –702 of 33
Article – Tax – General of the Annotated Code of Maryland be repealed. 34
HOUSE BILL 352 129
SECTION 12. AND BE IT FURTHER ENACTED, That, notwithstanding Section 8 1
of Chapter 717 of the Acts of the General Assembly of 2024 or any other provision of law, 2
on or before June 30, 2025, the Governor may transfer to the General Fund the fiscal year 3
2025 interest earnings from the Strategic Energy Investment Fund established under § 4
9–20B–05 of the State Government Article. 5
SECTION 13. AND BE IT FURTHER ENACTED, That, notwithstanding any other 6
provision of law, on or before June 30, 2025, the Governor may transfer to the General Fund 7
$203,365,440 from the Dedicated Purpose Account established under § 7–310 of the State 8
Finance and Procurement Article, including: 9
(1) $63,478,440 for cybersecurity; 10
(2) $62,887,000 in capital pay–as–you–go funds for construction of a new 11
State veterans home; 12
(3) $25,000,000 in capital pay–as–you–go funds for the University of 13
Maryland Medical System Comprehensive Cancer and Organ Transplant Center; 14
(4) $20,000,000 for the relocation of State agencies out of State Center; 15
(5) $11,000,000 in capital pay–as–you–go funds for Department of Natural 16
Resources critical maintenance; 17
(6) $10,000,000 in capital pay–as–you–go funds for Morgan State 18
University deferred maintenance and site improvements; 19
(7) $6,000,000 in funding to implement Chapter 464 of the Acts of the 20
General Assembly of 2022 (End the Wait Act); and 21
(8) $5,000,000 in capital pay–as–you–go funds for Baltimore City 22
Community College deferred maintenance. 23
SECTION 14. AND BE IT FURTHER ENACTED, That, notwithstanding any other 24
provision of law, on or before June 30, 2025, the Governor may transfer to the General Fund 25
the following: 26
(1) $150,000,000 from the Renewable Portfolio Standard / ACP Account of 27
the Strategic Energy Investment Fund established under § 9 –20B–05 of the State 28
Government Article; 29
(2) $9,000,000 from the Resilient Maryland Revolving Loan Fund 30
established under § 14–110.4 of the Public Safety Article; 31
(3) $7,000,000 from the Maryland Police Training and Standards 32
Commission Fund established under § 3–206.1 of the Public Safety Article; 33
130 HOUSE BILL 352
(4) $6,000,000 from the Maryland Innovation Investment Tax Credit 1
Reserve Fund established under § 10–733 of the Tax – General Article; 2
(5) $5,000,000 from the Securities Act Registration Fund established under 3
§ 11–208 of the Corporations and Associations Article; 4
(6) $4,900,000 from the Maryland Violence Intervention and Prevention 5
Program Fund established under § 4–902 of the Public Safety Article; 6
(7) $4,300,000 from the More Jobs for Marylanders Tax Credit Reserve 7
Fund established under § 10–741 of the Tax – General Article; and 8
(8) $4,000,000 from the Rape Kit Testing Grant Fund established under § 9
4–401 of the Public Safety Article. 10
SECTION 15. AND BE IT FURTHER ENACTED, That, notwithstanding any other 11
provision of law, including Chapter 716 of the Acts of the General Assembly of 2024, 12
authorization is hereby provided to the Maryland Department of Health to transfer funds 13
amongst budgetary programs in the Department with an approved budget amendment for 14
fiscal years 2025 and 2026. 15
SECTION 16. AND BE IT FURTHER ENACTED, That, notwithstanding any other 16
provision of law, the Governor may appropriate to the Department of Natural Resources 17
up to $16,400,000 from the Program Open Space State land acquisition fund balance for 18
operating expenses in the Maryland Park Service in fiscal year 2026 only. 19
SECTION 17. AND BE IT FURTHER ENACTED, That, notwithstanding any other 20
provision of law, on or before June 30, 2026, the Governor may transfer to the General Fund 21
$10,000,000 from the Maternal and Child Health Population Health Improvement Fund 22
established under § 19–210 of the Health – General Article. 23
SECTION 18. AND BE IT FURTHER ENACTED, That, notwithstanding any other 24
provision of law, on or before June 30, 2026, the Governor may transfer to the Behavioral 25
Health Administration within the Maryland Department of Health the following: 26
(1) $96,654 from the Kidney Disease Fund established under § 13–310.1 of 27
the Health – General Article; 28
(2) $1,570,750 from the State Board of Physicians Fund established under 29
§ 14–207 of the Health – Occupations Article; 30
(3) $720,938 from the State Board of Examiners for Audiologists, Hearing 31
Aid Dispensers, Speech–Language Pathologists, and Music Therapists Fund established 32
under § 2–206 of the Health – Occupations Article; 33
(4) $408,218 from the State Board of Social Work Examiners Fund 34
established under § 19–206 of the Health – Occupations Article; 35 HOUSE BILL 352 131
(5) $371,904 from the State Board of Dietetic Practice Fund established 1
under § 5–206 of the Health – Occupations Article; 2
(6) $332,957 from the State Board of Acupuncture Fund established under 3
§ 1A–206 of the Health – Occupations Article; 4
(7) $284,592 from the State Board of Physical Therapy Examiners Fund 5
established under § 13–207 of the Health – Occupations Article; 6
(8) $191,016 from the State Board of Examiners in Optometry Fund 7
established under § 11–207 of the Health – Occupations Article; and 8
(9) $40,699 from the State Board of Chiropractic Examiners Fund 9
established under § 3–206 of the Health – Occupations Article. 10
SECTION 19. AND BE IT FURTHER ENACTED, That: 11
(a) The transportation revenues raised in accordance with the provisions of this 12
Act shall remain allocated within the Maryland Department of Transportation. 13
(b) Notwithstanding § 8–402 of the Transportation Article or any other provision 14
of law, the revenue increases attributable to alterations to the titling tax provisions of this 15
Act may not be credited to the Gasoline and Motor Vehicle Revenue Account. 16
SECTION 20. AND BE IT FURTHER ENACTED, That the Comptroller shall waive 17
any interest or penalty imposed on an individual relating to payment of estimated income 18
tax for calendar year 2025 to the extent that the Comptroller determines that the interest 19
or penalty would not have been incurred but for an increase in the income tax rates for 20
calendar year 2025 under Section 3 of this Act. 21
SECTION 21. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall 22
take effect July 1, 2025. 23
SECTION 22. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall 24
take effect July 1, 2025, and shall be applicable to all taxable years beginning after 25
December 31, 2024. 26
SECTION 23. AND BE IT FURTHER ENACTED, That Section s 4 and 9 of this Act 27
shall take effect July 1, 2026. 28
SECTION 24. AND BE IT FURTHER ENACTED, That Section 5 of this Act shall 29
take effect July 1, 2027, and shall be applicable to all taxable years beginning after 30
December 31, 2027. 31
SECTION 25. AND BE IT FURTHER ENACTED, That Section 10 of this Act shall 32
take effect July 1, 2025, and shall be applicable to persons dying on or after July 1, 2025. 33 132 HOUSE BILL 352
Those statutes in effect on June 30, 2025, shall govern the administration, on and after 1
July 1, 2025, of estates of persons who died before July 1, 2025, and shall govern the 2
imposition, rate, administration, collection, enforcement, and distribution, on and after 3
July 1, 2025, of the inheritance tax on property passing from persons who died before July 4
1, 2025. 5
SECTION 26. AND BE IT FURTHER ENACTED, That , except as provided in 6
Sections 21, 22, 23, 24, and 25, of this Act, this Act shall take effect June 1, 2025. 7