EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Reassigned: Appropriations and Ways and Means, January 17, 2025
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 10, 2025
CHAPTER ______
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 the transfer 9
of certain funds; authorizing, requiring, or altering the distribution of certain 10
revenue; altering a certain cap on low intensity support services for certain 11
individuals; making the restoration of certain benefits subject to a certain limitation; 12
requiring county governments and Baltimore City to pay a certain percentage of 13
compensation awarded to certain erroneously convicted, sentenced, and confined 14
individuals; increasing the tax rate imposed on mobile sports wagering; requiring 15
county governments, beginning in a certain fiscal year, to pay certain amounts 16
toward the retirement costs for certain local employees; exempting the transfer of 17
certain transfer tax revenues to the General Fund of the State from certain 18
repayment requirements; increasing the outstanding and unpaid principal balance 19
of bonds issued by the Maryland Department of Transportation; expanding the uses 20
of certain bond proceeds; altering the value of certain vehicle trade–in allowances; 21
altering a certain limitation on the amount of the Maryland estate tax for decedents 22
dying on or after a certain date; reducing the amount of film tax credits that may be 23
awarded in a certain fiscal year; limiting the amount of tax credits the Maryland 24 2 HOUSE BILL 352
Higher Education Commission may approve for a certain fiscal year; requiring the 1
reversion of certain funds to the General Fund of the State; increasing the percentage 2
of certain costs for which each county and Baltimore City are responsible for 3
reimbursing the State; prohibiting the award of a certain tax credit to certain new 4
properties on or after a certain date; altering the Maryland earned income tax credit 5
for certain individuals; increasing the vehicle excise tax rate; repealing an exemption 6
for certain rental vehicles from the vehicle excise tax; specifying the rate of the 7
vehicle excise tax imposed on certain rental vehicles; altering the definition of 8
“historic motor vehicle” for purposes of registering a vehicle as a Class L vehicle; 9
altering certain exemptions under the State income tax on certain income of certain 10
persons; altering the rates and rate brackets under the State income tax on certain 11
income of individuals; providing for an additional State individual income tax rate 12
on the net capital gains of individuals; authorizing the transfer of certain funds; 13
requiring that certain sales of tangible personal property be included in the 14
numerator of the sales factor used for apportioning a corporation’s income to the 15
State under certain circumstances; imposing a certain income tax on income 16
distributed to certain members of certain pass–through entities from the 17
pass–through entity’s taxable income exceeding a certain amount; altering, subject 18
to certain limitations, the maximum tax rate that a county may impose on an 19
individual’s Maryland taxable income; altering the determination of the amount of 20
certain deductions allowed for an individual under the Maryland income tax; 21
imposing the sales and use tax on the sale of certain categories of taxable services; 22
altering the sales and use tax on the sale of cannabis; imposing the sales and use tax 23
on the sale of certain vending machine products, certain precious metal bullion and 24
coins, certain photographic material, and certain custom computer software; 25
requiring certain corporations to compute Maryland taxable income using a certain 26
method; requiring, subject to regulations adopted by the Comptroller, certain groups 27
of corporations to file a combined income tax return reflecting the aggregate income 28
tax liability of all the members of the group; requiring the Comptroller to adopt 29
certain regulations consistent with certain regulations adopted by the Multistate 30
Tax Commission; requiring the Comptroller to assess interest and penalties under 31
certain circumstances; reducing the Medicaid Deficit Assessment for a certain fiscal 32
year; repealing certain requirements for the Maryland Department of Health to 33
apply to a certain federal agency for certain grant funds and inclusion in a certain 34
program; repealing certain required appropriations to the Maryland Public 35
Broadcasting Commission; repealing the Low Intensity Support Services Program; 36
repealing the teacher retirement supplemental grants program; repealing certain 37
provisions of law relating to inheritance tax revenue distribution; repealing a certain 38
credit against the State income tax for certain business entities located in enterprise 39
zones; providing that payments to certain providers with rates set by the Interagency 40
Rates Committee may not increase by more than a certain amount for a certain fiscal 41
year; requiring the Comptroller to waive certain interest and penalties under certain 42
circumstances; and generally relating to the financing of State and local government. 43
BY repealing and reenacting, without amendments, 44
Article – Agriculture 45
Section 2–701(a) and (b), 2–710, 8–801.1(b), and 10–407(a)(1) and (c) and 8–801.1(b) 46 HOUSE BILL 352 3
Annotated Code of Maryland 1
(2016 Replacement Volume and 2024 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Agriculture 4
Section 2–712, 5–309, 5–503, 5–506, 8–706, 8–801.1(c), 9–204, 10–407(d), 11–204.4, 5
and 11–204.7 6
Annotated Code of Maryland 7
(2016 Replacement Volume and 2024 Supplement) 8
BY repealing and reenacting, without amendments, 9
Article – Alcoholic Beverages and Cannabis 10
Section 1–323(a)(1) and (4) and 36–206(a) and (b) 11
Annotated Code of Maryland 12
(2024 Replacement Volume) 13
BY repealing and reenacting, with amendments, 14
Article – Alcoholic Beverages and Cannabis 15
Section 1–323(f) and 36–206(c) and (g) 16
Annotated Code of Maryland 17
(2024 Replacement Volume) 18
BY repealing and reenacting, without amendments, 19
Article – Commercial Law 20
Section 14–4101 21
Annotated Code of Maryland 22
(2013 Replacement Volume and 2024 Supplement) 23
BY repealing and reenacting, with amendments, 24
Article – Commercial Law 25
Section 14–4104 26
Annotated Code of Maryland 27
(2013 Replacement Volume and 2024 Supplement) 28
BY repealing and reenacting, without amendments, 29
Article – Corporations and Associations 30
Section 11–208(a) and (b) 11–208(a), (b), and (f) 31
Annotated Code of Maryland 32
(2014 Replacement Volume and 2024 Supplement) 33
BY repealing and reenacting, with amendments, 34
Article – Corporations and Associations 35
Section 11–208(g) 1–203.3, 11–208(g), and 11–407 36
Annotated Code of Maryland 37
(2014 Replacement Volume and 2024 Supplement) 38
BY repealing and reenacting, without amendments, 39 4 HOUSE BILL 352
Article – Criminal Procedure 1
Section 11–934(b) and (c)(1) and (2) 2
Annotated Code of Maryland 3
(2018 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – Criminal Procedure 6
Section 11–934(f)(2) 7
Annotated Code of Maryland 8
(2018 Replacement Volume and 2024 Supplement) 9
BY repealing and reenacting, without amendments, 10
Article – Economic Development 11
Section 10–501(a) and (f), 10–526(a)(1) and (4) and (b), 13–601(a) and (c), and 12
13–611(a) and (b)(1) Section 10–501(a) and (f) and 10–526(a)(1) and (4) and (b) 13
Annotated Code of Maryland 14
(2024 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Economic Development 17
Section 10–526(g)(1) and 13–611(b)(3) 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2024 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – Education 22
Section 7–414.1(a), (b), and (f)(1) and (5), 7–447.1(p)(1) and (3), 7–810(a), (b), and 23
(f)(1) and (5), 7–1501(a) and (f), 7–1508(e)(2), 16–512(a) and (c), 18–3602(a) 24
and (b), 18–3701(a) and (f), and 18–3802(a) and (b) 25
Annotated Code of Maryland 26
(2022 Replacement Volume and 2024 Supplement) 27
BY repealing and reenacting, with amendments, 28
Article – Education 29
Section 7–414.1(f)(4), 7–447.1(p)(9), 7–810(f)(4), 7–1508(g), 7–1512(e), 8–415(d), 30
14–405(b), 16–512(b), 18–3605, 18–3704, and 18–3806 31
Annotated Code of Maryland 32
(2022 Replacement Volume and 2024 Supplement) 33
BY repealing 34
Article – Education 35
Section 7–1512(g) 36
Annotated Code of Maryland 37
(2022 Replacement Volume and 2024 Supplement) 38
BY repealing and reenacting, with amendments, 39
Article – Environment 40 HOUSE BILL 352 5
Section 4–104, 5–203.1(b)(1), (3), (4), (6), and (8), (c)(5), and (d), 6–843, and 7–506(a) 1
7–506(a), 9–228(g), and 9–274 2
Annotated Code of Maryland 3
(2013 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – Environment 6
Section 5–203.1(a)(1), (6), (8), (9), and (10), (c)(1), and (e) and 7–503(a) 7
Annotated Code of Maryland 8
(2013 Replacement Volume and 2024 Supplement) 9
BY repealing 10
Article – Environment 11
Section 5–203.1(b)(7) 12
Annotated Code of Maryland 13
(2013 Replacement Volume and 2024 Supplement) 14
BY adding to 15
Article – Environment 16
Section 5–203.1(a)(12) 17
Annotated Code of Maryland 18
(2013 Replacement Volume and 2024 Supplement) 19
BY repealing and reenacting, without amendments, 20
Article – Environment 21
Section 15–807(a) and (d), and 15–808(a), (c), (g), (h), (i), and (k) 22
Annotated Code of Maryland 23
(2014 Replacement Volume and 2024 Supplement) 24
BY repealing and reenacting, with amendments, 25
Article – Environment 26
Section 15–807(b), (c), and (f), 15–808(f), 15–815, 15–816, and 15–819 27
Annotated Code of Maryland 28
(2014 Replacement Volume and 2024 Supplement) 29
BY repealing and reenacting, without amendments, 30
Article – Financial Institutions 31
Section 13–1114(a) 32
Annotated Code of Maryland 33
(2020 Replacement Volume and 2024 Supplement) 34
BY repealing and reenacting, with amendments, 35
Article – Financial Institutions 36
Section 13–1114(g) 37
Annotated Code of Maryland 38
(2020 Replacement Volume and 2024 Supplement) 39
6 HOUSE BILL 352
BY repealing and reenacting, without amendments, 1
Article – Health – General 2
Section 7–101(a), (b), and (l), 7–205(a)(1) and (b), and 19–112(a) and (d) 10–101(a), 3
(b), and (f), 10–1203(a), 15–1004(a), 19–112(a) and (d), and 24–1101(a) and (c) 4
Annotated Code of Maryland 5
(2023 Replacement Volume and 2024 Supplement) 6
BY repealing and reenacting, with amendments, 7
Article – Health – General 8
Section 7–205(e), 7–409(c), 7–717, 10–1203(c), 13–1116(a), and 19–112(e)(1) 9
15–1004(f), 19–112(e)(1), and 24–1105 10
Annotated Code of Maryland 11
(2023 Replacement Volume and 2024 Supplement) 12
BY adding to 13
Article – Health – General 14
Section 15–157 15
Annotated Code of Maryland 16
(2023 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – Health Occupations 19
Section 8–206(a) 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2024 Supplement) 22
BY repealing and reenacting, with amendments, 23
Article – Health Occupations 24
Section 8–206(e) 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2024 Supplement) 27
BY repealing and reenacting, without amendments, 28
Article – Housing and Community Development 29
Section 4–511(a), (b), and (c) 30
Annotated Code of Maryland 31
(2019 Replacement Volume and 2024 Supplement) 32
BY repealing and reenacting, with amendments, 33
Article – Housing and Community Development 34
Section 4–511(j) 35
Annotated Code of Maryland 36
(2019 Replacement Volume and 2024 Supplement) 37
BY repealing and reenacting, with amendments, 38
Article – Human Services 39
Section 10–1303 5–609 40 HOUSE BILL 352 7
Annotated Code of Maryland 1
(2019 Replacement Volume and 2024 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Labor and Employment 4
Section 8–421, 8–609(b), 8–612(a), 8–613(b), (d), (f), and (g), 11–606(f), 11–1302(e), 5
and 11–1506 6
Annotated Code of Maryland 7
(2016 Replacement Volume and 2024 Supplement) 8
BY adding to 9
Article – Labor and Employment 10
Section 8–605.1 11
Annotated Code of Maryland 12
(2016 Replacement Volume and 2024 Supplement) 13
BY repealing and reenacting, without amendments, 14
Article – Labor and Employment 15
Section 8–609(a)(1) and (3), 8–613(a)(1), (3), and (4), 11–606(b) and (c), 11–1302(a) 16
and (f), and 11–1501(a) and (f) 17
Annotated Code of Maryland 18
(2016 Replacement Volume and 2024 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Local Government 21
Section 16–503 22
Annotated Code of Maryland 23
(2013 Volume and 2024 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Natural Resources 26
Section 3–103(a)(1), 5–903(a)(1) and (2)(i) and (iii), 5–2001(a), (b), and (c), 27
8–2A–02(a) and (b), and 8–709(a) and (b) 28
Annotated Code of Maryland 29
(2023 Replacement Volume and 2024 Supplement) 30
BY repealing and reenacting, with amendments, 31
Article – Natural Resources 32
Section 3–103(h), 5–2001(k), 8–2A–02(f), and 8–709(c) 33
Annotated Code of Maryland 34
(2023 Replacement Volume and 2024 Supplement) 35
BY repealing and reenacting, without amendments, 36
Article – Public Safety 37
Section 4–1011(a) and (c) 38
Annotated Code of Maryland 39
(2022 Replacement Volume and 2024 Supplement) 40 8 HOUSE BILL 352
BY repealing and reenacting, with amendments, 1
Article – Public Safety 2
Section 4–1011(b) 3
Annotated Code of Maryland 4
(2022 Replacement Volume and 2024 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Real Property 7
Section 8–1006 8
Annotated Code of Maryland 9
(2023 Replacement Volume and 2024 Supplement) 10
BY repealing and reenacting, without amendments, 11
Article – State Finance and Procurement 12
Section 3.5–309(a), (b), (j), and (k) and 7–311(a), (b), and (f), 7–311(a), (b), and (f), 13
7–317(a), 7–328(a), 7–331(a) and (b), and 10–501(b)(1), (d)(1), and (e) 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2024 Supplement) 16
BY repealing 17
Article – State Finance and Procurement 18
Section 3.5–309(l) 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2024 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – State Finance and Procurement 23
Section 3.5–309(m), (n), (o), and (p), 6–104(e), 7–114.2, 7–311(e) and (j), and 7–325 24
7–311(e) and (j), 7–317(g) and (h), 7–328(f), 7–331(i), and 10–501(a) 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2024 Supplement) 27
BY repealing and reenacting, with amendments, 28
Article – State Government 29
Section 9–1A–27(d), 9–120, 9–1E–06(c), 9–1E–12(b), 9–20B–05(e) and (f), 9–3209(b), 30
21–205(c), and 21–206(f) 31
Annotated Code of Maryland 32
(2021 Replacement Volume and 2024 Supplement) 33
BY repealing and reenacting, without amendments, 34
Article – State Government 35
Section 9–20B–05(a) and (j), 9–3209(a), 21–205(a), and 21–206(a) 36
Annotated Code of Maryland 37
(2021 Replacement Volume and 2024 Supplement) 38
BY repealing and reenacting, without amendments, 39 HOUSE BILL 352 9
Article – State Personnel and Pensions 1
Section 21–304(a) and (b)(1) and (4)(i) and (iii) 2
Annotated Code of Maryland 3
(2024 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – State Personnel and Pensions 6
Section 21–304(b)(5) and 21–308(a) 7
Annotated Code of Maryland 8
(2024 Replacement Volume and 2024 Supplement) 9
BY adding to 10
Article – State Personnel and Pensions 11
Section 21–304(b)(6) and 21–309.2 12
Annotated Code of Maryland 13
(2024 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Tax – General 16
Section 2–202(a), 2–606(h) and (i), 2–606(a), (h), and (i), 2–1302.2, 7–309(b), 17
10–105(a) and (b), 2–1303, 10–104, 10–105(a), 10–106(a)(1), 10–217, 10–219, 18
10–220, 10–218, 10–730(f), 10–740(c) and (g), 10–741(d), 10–751, 10–811, and 19
11–104(k) 11–101(c–12) and (m), 11–104(k), 11–206(h), 11–214.1(b), 11–215, 20
and 11–219 21
Annotated Code of Maryland 22
(2022 Replacement Volume and 2024 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Tax – General 25
Section 2–606(a) and (b), 7–309(a), and 10–740(a), (b), and (i) 2–606(b), 10–219, 26
10–220, 10–730(a)(1), (4), (7), and (8) and (b), 10–740(a), (b), and (i), and 27
11–101(a) and (l)(1) 28
Annotated Code of Maryland 29
(2022 Replacement Volume and 2024 Supplement) 30
BY adding to 31
Article – Tax – General 32
Section 2–606(h) and (k) and 10–402.1 2–605.3, 2–606(h), (i), and (l), 2–1302.5, 33
10–402.1, 11–101(c–12), and 11–104(l) 34
Annotated Code of Maryland 35
(2022 Replacement Volume and 2024 Supplement) 36
BY repealing 37
Article – Tax – General 38
Section 2–701 and 2–702 and the subtitle “Subtitle 7. Inheritance Tax Revenue 39
Distribution”; 7–201 through 7–234 and the subtitle “Subtitle 2. Inheritance 40
Tax”; and 10–218 and 10–702 11–206(g) 41 10 HOUSE BILL 352
Annotated Code of Maryland 1
(2022 Replacement Volume and 2024 Supplement) 2
BY repealing and reenacting, without amendments, 3
Article – Tax – Property 4
Section 13–209(a)(4) and (e) 5
Annotated Code of Maryland 6
(2019 Replacement Volume and 2024 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – Tax – Property 9
Section 2–106 and 13–209(c), (d), and (h) 10
Annotated Code of Maryland 11
(2019 Replacement Volume and 2024 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Transportation 14
Section 2–103.1(m)(2)(iii), 3–202, 3–601(d), 7–406(c), 2–802(b)(2)(i), 3–202, 3–216(e), 15
3–601(d), 7–406(c), 8–402, 12–120, 13–809(a), 13–901, 13–802, 13–809(c), 16
13–810(a)(24) and (26), 13–912, 13–916, 13–917, 13–936, 13–937, 13–955(e), 17
17–106(e)(2), and 23–205 18
Annotated Code of Maryland 19
(2020 Replacement Volume and 2024 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – Transportation 22
Section 13–809(b)(1) and (d), 2–802(b)(1), 13–955(a), and 17–106(a), (b), (c), (d), and 23
(e)(1) 24
Annotated Code of Maryland 25
(2020 Replacement Volume and 2024 Supplement) 26
BY repealing 27
Article – Transportation 28
Section 13–810(a)(25) 29
Annotated Code of Maryland 30
(2020 Replacement Volume and 2024 Supplement) 31
BY adding to 32
Article – Transportation 33
Section 13–955(f); and 18.8–101 through 18.8–106 to be under the new title “Title 34
18.8. Retail Delivery Fee” Section 7–205.1 and 13–955(f) 35
Annotated Code of Maryland 36
(2020 Replacement Volume and 2024 Supplement) 37
BY repealing and reenacting, with amendments, 38
Article – Tax – Property 39
Section 2–106 and 9–103(e) and (f) 40 HOUSE BILL 352 11
Annotated Code of Maryland 1
(2019 Replacement Volume and 2024 Supplement) 2
BY repealing and reenacting, without amendments, 3
Article – Tax – Property 4
Section 9–103(a) 5
Annotated Code of Maryland 6
(2019 Replacement Volume and 2024 Supplement) 7
BY repealing 8
Article – Education 9
Section 24–204(d) 10
Annotated Code of Maryland 11
(2022 Replacement Volume and 2024 Supplement) 12
BY repealing 13
Article – Health – General 14
Section 7–717 15
Annotated Code of Maryland 16
(2023 Replacement Volume and 2024 Supplement) 17
BY repealing 18
Article – Local Government 19
Section 16–503 20
Annotated Code of Maryland 21
(2013 Volume and 2024 Supplement) 22
BY repealing and reenacting, with amendments, 23
Chapter 397 of the Acts of the General Assembly of 2011, as amended by Chapter 24
425 of the Acts of the General Assembly of 2013, Chapter 464 of the Acts of 25
the General Assembly of 2014, Chapter 489 of the Acts of the General 26
Assembly of 2015, Chapter 23 of the Acts of the General Assembly of 2017, 27
Chapter 10 of the Acts of the General Assembly of 2018, Chapter 16 of the 28
Acts of the General Assembly of 2019, Chapter 538 of the Acts of the General 29
Assembly of 2020, and Chapter 103 of the Acts of the General Assembly of 30
2023 31
Section 16(c) 32
BY repealing and reenacting, with amendments, 33
Chapter 260 of the Acts of the General Assembly of 2023 34
Section 2 35
BY repealing and reenacting, with amendments, 36
Chapter 261 of the Acts of the General Assembly of 2023 37
Section 2 38
BY repealing 39 12 HOUSE BILL 352
Chapter 275 of the Acts of the General Assembly of 2023 1
Section 1 and 2 2
BY repealing 3
Chapter 717 of the Acts of the General Assembly of 2024 4
Section 8(42) 5
BY repealing and reenacting, with amendments, 6
Chapter 717 of the Acts of the General Assembly of 2024 7
Section 9 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – Agriculture 11
2–701. 12
(a) In this subtitle the following words have the meanings indicated. 13
(b) “Board” means the Maryland Horse Industry Board. 14
2–710. 15
A person may not engage in the business of operating or maintaining any horse 16
establishment unless the person has received a license issued by the Board. 17
2–712. 18
(a) A license expires on [the] June 30 after its effective date, unless the license is 19
renewed for a 1–year term as provided in this section. 20
(B) AT LEAST 1 MONTH BEFORE A LICEN SE EXPIRES, THE BOARD SHALL 21
SEND EACH LICENSEE , BY ELECTRONIC MEANS OR FIRST–CLASS MAIL TO THE LA ST 22
KNOWN ELECTRONIC OR MAILING ADDRESS OF THE LICEN SEE, A RENEWAL FORM 23
AND A RENEWAL NOTICE THAT STATES: 24
(1) THE DATE ON WHICH THE CURRENT LICENSE EXPI RES; 25
(2) THAT THE RENEWAL APPL ICATION AND FEE MUST BE RECEIVED 26
BY THE BOARD ON OR BEFORE TH E LICENSE EXPIRA TION DATE; AND 27
(3) THE AMOUNT OF THE REN EWAL FEE. 28
[(b)] (C) Before [his] A PERSON’S license expires, a licensee periodically may 29
renew [his] THE license for additional 1–year terms, if the licensee: 30 HOUSE BILL 352 13
(1) Otherwise is entitled to be licensed; 1
(2) Pays to the Board a renewal fee of $125; and 2
(3) Submits to the Board a renewal application on the form that it requires. 3
(D) A PERSON WHO IS LICENS ED TO OPERATE A HORS E ESTABLISHMENT 4
HAS A GRACE PERIOD O F 60 DAYS AFTER THE PERSO N’S LICENSE EXPIRES T O RENEW 5
THE LICENSE RETROACT IVELY, IF THE PERSON: 6
(1) OTHERWISE IS ENTITLED TO RENEW THE LICENSE ; 7
(2) SUBMITS TO THE BOARD A RENEWAL APPLI CATION ON THE FORM 8
REQUIRED BY THE BOARD; AND 9
(3) PAYS TO THE BOARD THE RENEWAL FEE AND ANY LATE FEE SET 10
BY THE BOARD. 11
(E) THE BOARD MAY REINSTATE T HE LICENSE OF A FORM ER LICENSEE IF 12
THE FORMER LICENSEE : 13
(1) APPLIES FOR THE REINS TATEMENT MORE THAN 60 DAYS AFTER 14
THE LICENSE RENEWAL DEADLINE; 15
(2) OTHERWISE IS ENTITLED TO RENEW THE LICENSE ; 16
(3) SUBMITS TO THE BOARD AN APPLICATION FOR REINSTATEMENT 17
ON THE FORM REQUIRED BY THE BOARD; AND 18
(4) PAYS TO THE BOARD A REINSTATEMENT FEE AND THE RENEWAL 19
FEE SET BY THE BOARD. 20
5–309. 21
(a) (1) At least once each year the Secretary shall inspect each nursery in the 22
State to determine if the nursery stock is infested or infected with dangerously injurious 23
plant pests. 24
(2) Each nursery shall pay the Secretary an inspection fee based [upon] 25
ON the number of acres in production AS FOLLOWS: 26
(I) 1 acre or less, [$10] $20; [more] 27
(II) MORE than 1 acre to 5 acres, [$20] $30; [more] 28 14 HOUSE BILL 352
(III) MORE than 5 acres to 10 acres, [$30] $40; [more] AND 1
(IV) MORE than 10 acres, [$3] $5 for each acre, or part of any acre, 2
up to a maximum of [$1,000] $1,500. 3
(3) All fees collected UNDER PARAGRAPH (2) OF THIS SUBSECTION shall 4
be [placed in] DEPOSITED INTO the Plant Protection Fund and used to defray partially 5
the cost of inspecting the nurseries. 6
(b) (1) Each nursery shall be certified annually by the Secretary if it meets 7
standards established by the Department regarding freedom from plant pests and [upon] 8
ON payment of a fee of [$100] $150. 9
(2) All fees collected UNDER PARAGRAPH (1) OF THIS SUBSECTION shall 10
be [placed in] DEPOSITED INTO the Plant Protection Fund and used to defray partially 11
the cost of inspecting and certifying the nurseries. 12
(c) (1) Each broker or dealer shall comply with the regulations established by 13
the Department and shall pay an annual license fee of [$100] $150. 14
(2) The Secretary may inspect annually the nursery stock in a sales or 15
holding yard of a broker or dealer. 16
(3) Each broker or dealer shall pay the Secretary an inspection fee as 17
provided in subsection (a) of this section. 18
(4) All fees collected UNDER PARAGRAPH (1) OF THIS SUBSECTION shall 19
be [placed in] DEPOSITED INTO the Plant Protection Fund and used to defray partially 20
the cost of inspecting and licensing the brokers and dealers. 21
(d) (1) The Secretary may certify plants [to]: 22
(I) TO be apparently free of injurious viruses[, and/or] OR other 23
diseases[, or plants that]; OR 24
(II) THAT conform to established standards of strain purity. 25
(2) Each plant producer shall pay the Secretary [the following] A 26
certification fee for each acre, or part of an acre, in plant production AS FOLLOWS : 27
[strawberry] 28
(I) STRAWBERRY plants, “Cape” American beachgrass, “Avalon” 29
Saltmeadow cordgrass, $50; [grape] AND 30
HOUSE BILL 352 15
(II) GRAPE vines, fruit trees, and bramble plants, $70. 1
(3) All fees collected UNDER PARAGRAPH (2) OF THIS SUBSECTION shall 2
be [placed in] DEPOSITED INTO the Plant Protection Fund and used to defray partially 3
the cost of virus indexing, inspection, and analysis of plants certified or tagged. 4
(e) (1) If dangerously injurious plant pests are found in any nursery, orchard, 5
or any premises where nursery stock is grown or held for sale, the Secretary shall order it 6
treated or destroyed by the [nurseryman] NURSERY or dealer. [He] 7
(2) THE SECRETARY shall release all other nursery stock grown on the 8
premises, and issue a certificate of inspection to the owner. 9
(3) If the [nurseryman] NURSERY or dealer fails to comply with the order, 10
the Secretary shall seize, destroy, [and/or] OR treat the infested or infected nursery stock 11
and the owner shall pay the costs. 12
(4) If [the] AN owner refuses to pay the [cost] COSTS REQUIRED UNDER 13
PARAGRAPH (3) OF THIS SUBSECTION , [it] THE COSTS shall be collected [as prescribed] 14
in ACCORDANCE WITH § 5–307 of this subtitle. 15
(f) A federal, State, or local public agency is exempt from the license and 16
inspection fees required by this section. 17
5–503. 18
(a) (1) A beekeeper shall register annually with the Department each colony 19
that [it] THE PERSON maintains, as provided in this subsection. 20
(2) On or before January 1 of each year, the beekeeper shall complete and 21
submit to the Department a registration form on which the beekeeper shall state the 22
number of colonies [he] THE PERSON maintains and the location of each colony. 23
(3) The Department shall adopt a form which shall be used to comply with 24
the registration requirements of this subsection. 25
(b) Any person who is not registered as a beekeeper under this section and who 26
acquires a colony shall register [it] THE COLONY with the Department within 30 days after 27
the acquisition. 28
(C) A PERSON WHO FAILS TO COMPLETE AND SUBMIT THE REGISTRATION 29
IN A TIMELY MANNER A S SPECIFIED IN THIS SECTION IS SUBJECT T O: 30
(1) AFTER 30 DAYS FROM NOTIFICATI ON BY THE DEPARTMENT TO 31
SUBMIT A REGISTRATIO N, AN ADMINISTRATIVE PE NALTY OF $25; 32 16 HOUSE BILL 352
(2) AFTER 60 DAYS FROM NOTIFICATI ON BY THE DEPARTMENT TO 1
SUBMIT A REGISTRATIO N, AN ADMINISTRATIVE PE NALTY OF $50; AND 2
(3) AFTER 90 DAYS FROM NOTIFICATI ON BY THE DEPARTMENT TO 3
SUBMIT A REGISTRATIO N, AN ADMINISTRATIVE PE NALTY OF $100. 4
5–506. 5
(A) In each colony that [it] A BEEKEEPER maintains, a beekeeper shall provide 6
movable frames, each of which may be removed from the colony without causing damage to 7
the combs in the colony. 8
(B) (1) AFTER BEING NOTIFIED BY THE DEPARTMENT TO PROVIDE 9
MOVABLE FRAMES FOR A COLONY, A BEEKEEPER SHALL PROVIDE THE FRAMES 10
WITHIN 30 DAYS FROM RECEIPT OF THE NOTICE. 11
(2) IF A BEEKEEPER FAILS TO PROVIDE THE FRAME S AS SPECIFIED IN 12
THIS SECTION, THE BEEKEEPER IS SUB JECT TO: 13
(I) AFTER 30 DAYS FROM RECEIPT OF THE DEPARTMENT ’S 14
NOTIFICATION, AN ADMINISTRATIVE PENAL TY OF $25; AND 15
(II) AFTER 60 DAYS FROM RECEIPT OF THE DEPARTMENT ’S 16
NOTIFICATION, AN ADMINISTRATIVE PE NALTY OF $50. 17
8–706. 18
(a) To maximize participation in the Conservation Reserve Enhancement 19
Program, in fiscal years 2023 through 2031, inclusive, a landowner who enrolls land 20
planted with a forested streamside buffer shall receive a one–time signing bonus of up to 21
$1,000 per acre of land enrolled. 22
(b) Signing bonuses provided under this section shall be funded with: 23
(1) Money appropriated under subsection (c) of this section; and 24
(2) The amount specified in § 9–1605.2(i)(11)(i) of the Environment Article. 25
(c) (1) For fiscal [years 2024 through 2031, in each year] YEAR 2024, the 26
Governor shall appropriate $2,500,000 in the annual State budget to fund tree planting 27
under this section and other tree planting programs on agricultural land. 28
(2) FOR EACH OF FISCAL YE ARS 2025 THROUGH 2031, THE 29
GOVERNOR SHALL APPROP RIATE $500,000 IN THE ANNUAL STATE BUDGET TO 30 HOUSE BILL 352 17
FUND TREE PLANTING UNDER THIS SECTION A ND OTHER TREE PLANTI NG 1
PROGRAMS ON AGRICULT URAL LAND. 2
[(2)] (3) Money appropriated under this subsection is supplemental to 3
and may not take the place of funding that would otherwise be appropriated for tree 4
plantings under this section and other tree planting programs on agricultural land. 5
8–801.1. 6
(b) (1) Subject to paragraph (2) of this subsection, a summary of each nutrient 7
management plan shall be filed and updated with the Department at a time and in a form 8
that the Department requires by regulation. 9
(2) (i) The Department may require an updated summary under this 10
subsection to take the form of an annual implementation report. 11
(ii) If a person, in operating a farm, uses or produces animal manure, 12
the person’s annual implementation report shall include: 13
1. The amount of animal manure imported to or exported 14
from the person’s farm; 15
2. For any animal manure that was imported, the name and 16
location of the sending farm; and 17
3. For any animal manure that was exported, the name and 18
location of the farm, alternative use facility, or manure broker that received the manure. 19
(iii) If a person receives animal manure through a manure broker, 20
the broker shall provide the person with the name and location of the sending farm. 21
(3) The Department shall maintain a copy of each summary for 3 years in 22
a manner that protects the identity of the individual for whom the nutrient management 23
plan was prepared. 24
(c) (1) If a person fails to file a summary or annual implementation report as 25
required by the Department under subsection (b) of this section, the Department shall 26
notify the person that: 27
(i) The person is in violation of the requirement to file a summary 28
or annual implementation report; and 29
(ii) The person is subject to[: 30
1. After], AFTER 30 days from issuance of the notice, an 31
administrative penalty of not less than [$100] $1,000 and not more than [$250; 32 18 HOUSE BILL 352
2. After 60 days from issuance of the notice, an 1
administrative penalty of not less than $250 and not more than $1,000; and 2
3. After 90 days from issuance of the notice, an 3
administrative penalty of not less than $1,000] $2,000. 4
(2) A penalty imposed on a person under paragraph (1) of this subsection 5
shall be assessed with consideration given to: 6
(i) The willfulness of the violation; and 7
(ii) The extent to which the current violation is part of a recurrent 8
pattern of the same or similar type of violation committed by the violator. 9
9–204. 10
(a) No person may engage in the business of a wholesale seedsman in the State 11
unless [he] THE PERSON first obtains a permit. 12
(b) [He] THE PERSON shall apply to the Secretary on a form determined and 13
furnished by the Secretary. The application shall be verified by the oath of the applicant 14
or, if the applicant is a corporation, by the oath of some of its officers. 15
(c) Upon payment of a [$100] $125 permit fee, the Secretary shall issue to the 16
applicant a wholesale seedsman permit for an annual period beginning July 1 each year. 17
(d) Out–of–state wholesale seedsmen doing business in the State shall obtain a 18
permit in the same manner. 19
(e) Any permit issued under this subtitle may be revoked or suspended by the 20
Secretary upon satisfactory proof that the seedsman has violated any provision of this 21
subtitle or any of the rules and regulations adopted under it. A permit may not be revoked 22
or suspended until the holder has been given an opportunity for a hearing by the Secretary. 23
(f) The Secretary may issue a stop–sale order to any wholesale seedsman who 24
offers or exposes seed for sale without holding a valid permit. 25
10–407. 26
(a) (1) The University of Maryland Extension shall create a “Maryland Native 27
Plants” webpage on the University of Maryland Extension’s website. 28
(c) A link to the “Maryland Native Plants” webpage shall be posted on the 29
Department of Natural Resources’ native plants website. 30
HOUSE BILL 352 19
(d) For fiscal year 2025 and each fiscal year thereafter, the Governor [shall] MAY 1
include in the annual budget bill an appropriation of $150,000 for the University of 2
Maryland Extension to hire one extension agent as a Native Plant Specialist and $100,000 3
for the Department to hire staff to administer the Program. 4
11–204.4. 5
(a) Unless a registration for a weight and measure is renewed for a 1–year term, 6
the license expires 1 year from the effective date of the registration. 7
(B) AT LEAST 1 MONTH BEFORE A REGIS TRATION FOR A WEIGHT AND 8
MEASURE EXPIRES , THE SECRETARY SHALL SEND EACH PERSON WITH A KNOWN 9
REGISTRATION , BY ELECTRONIC MEANS OR FIRST–CLASS MAIL TO THE LA ST KNOWN 10
ELECTRONIC OR MAILIN G ADDRESS OF THE PER SON, A REGISTRATION RENEW AL 11
FORM AND A RENEWAL N OTICE THAT STATES : 12
(1) THE DATE ON WHICH THE CURRENT REGISTRATION EXPIRES; 13
(2) THAT THE RENEWAL APPL ICATION AND FEE MUST BE RECEIVED 14
BY THE SECRETARY ON OR BEFOR E THE REGISTRATION E XPIRATION DATE ; AND 15
(3) THE AMOUNT OF THE REN EWAL FEE. 16
[(b)] (C) Before a registration for a weight and measure expires, the registration 17
may be renewed for an additional 1–year term, if the applicant: 18
(1) Is the owner or possessor of a weight and measure; 19
(2) Pays the applicable fee as provided in § 11–204.7 of this subtitle; and 20
(3) Submits to the Secretary a renewal application on a form that the 21
Secretary provides. 22
(D) A PERSON WHO HAS A REG ISTRATION FOR A WEIG HT AND MEASURE HAS 23
A GRACE PERIOD OF 60 DAYS AFTER THE REGIS TRATION EXPIRES IN W HICH TO 24
RENEW THE REGISTRATI ON RETROACTIVELY , IF THE PERSON: 25
(1) OTHERWISE IS ENTITLED TO RENEW THE REGISTR ATION; 26
(2) SUBMITS TO THE SECRETARY A RENEWAL A PPLICATION ON THE 27
FORM REQUIRED BY THE SECRETARY; AND 28
(3) PAYS TO THE SECRETARY THE RENEWAL FEE AND LATE FEE SET 29
BY THE SECRETARY. 30
20 HOUSE BILL 352
[(c)] (E) The owner or possessor of a weight and measure shall display the 1
registration conspicuously at each place of business where the weight and measure is 2
located. 3
[(d)] (F) If the weight and measure is sold, transferred, or moved to a new 4
location, the owner or possessor of a weight and measure shall notify the Secretary. 5
11–204.7. 6
The SECRETARY MAY SET REA SONABLE fees for registering each weight and 7
measure used for commercial purposes under this subtitle [are as follows: 8
(1) Scales with a capacity of up to 100 pounds (maximum fee per business 9
location: $375)........................................................................................................................$20 10
for each scale, plus $50 for each business location; 11
(2) Scales with a capacity of more than 100 pounds, u p to 2,000 12
pounds...................................................................................................................................$60; 13
(3) Scales with a capacity of more than 2,000 pounds............................$100; 14
(4) Belt conveyor scales...........................................................................$300; 15
(5) Railroad track scales..........................................................................$300; 16
(6) Vehicle scales.....................................................................................$250; 17
(7) Grain moisture meter........................................................................$100; 18
(8) Retail motor fuel dispenser meter of under 20 gallons per 19
minute...............................................................................................................................$12.50 20
for each meter, plus $50 for each business location; 21
(9) Retail motor fuel dispenser meter of 20 gallons per minute or 22
more......................................................................................................................................$45; 23
(10) Bulk petroleum fuel meter of 20 gallons per minute, up to 150 gallons 24
per minute............................................................................................................................$50; 25
(11) Bulk petroleum fuel meter of 150 gallons per minute or more...........$85; 26
(12) Liquefied petroleum gas meters...................................................$75; and 27
(13) Point of sale system, as defined by the National Institute of Standards 28
and Technology (NIST) Handbook 44, connected to a weighing or measuring device (per 29
business location)..............................................................................................................$100]. 30
HOUSE BILL 352 21
Article – Alcoholic Beverages and Cannabis 1
1–323. 2
(a) (1) In this section the following words have the meanings indicated. 3
(4) “Grant Program” means the Social Equity Partnership Grant Program. 4
(f) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include 5
in the annual budget bill an appropriation of $5,000,000 for the Grant Program, UTILIZING 6
THE CANNABIS REGULATION AND ENFORCEMENT FUND ESTABL ISHED UNDER § 7
36–206 OF THIS ARTICLE . 8
36–206. 9
(a) In this section, “Fund” means the Cannabis Regulation and Enforcement 10
Fund. 11
(b) There is a Cannabis Regulation and Enforcement Fund. 12
(c) The purpose of the Fund is to provide funds to cover the costs of: 13
(1) the operation of the Administration; [and] 14
(2) administering and enforcing this title; AND 15
(3) SUPPORTING THE SOCIAL EQUITY PARTNERSHIP GRANT 16
PROGRAM ESTABLISHED U NDER § 1–323 OF THIS ARTICLE . 17
(g) The Fund may be used [only] for carrying out this title AND SUPPORTING 18
THE SOCIAL EQUITY PARTNERSHIP GRANT PROGRAM ESTABLISHED U NDER § 19
1–323 OF THIS ARTICLE . 20
Article – Commercial Law 21
14–4101. 22
(a) In this subtitle the following words have the meanings indicated. 23
(b) “Commissioner” means the Commissioner of Financial Regulation in the 24
Maryland Department of Labor. 25
(c) “Office” means the Office of the Attorney General. 26
14–4104. 27
22 HOUSE BILL 352
(a) (1) (i) For fiscal year 2025 only, the Governor may include in the annual 1
budget bill an appropriation of at least $700,000 in special funds for the Office for the 2
purposes of enforcement of: 3
1. Consumer protection laws under this title; 4
2. Consumer protection laws under Title 13 of this article; 5
and 6
3. Financial consumer protection laws. 7
(ii) For fiscal year 2026 and each fiscal year thereafter, the Governor 8
shall include in the annual budget bill an appropriation of at least $350,000 in [general] 9
SPECIAL funds for the Office for the purposes of enforcement of: 10
1. Consumer protection laws under this title; 11
2. Consumer protection laws under Title 13 of this article; 12
and 13
3. Financial consumer protection laws. 14
(2) The Office shall use the funds under paragraph (1) of this subsection 15
for: 16
(i) Staffing costs associated with hiring new employees; and 17
(ii) Investigations of alleged violations of consumer protection laws 18
in the State. 19
(b) (1) For fiscal year 2020 and each fiscal year thereafter, the Governor shall 20
include an appropriation of at least $300,000 in general funds in the State budget for the 21
Commissioner for the purposes of enforcement of financial consumer protection laws. 22
(2) The Commissioner shall use the funds under paragraph (1) of this 23
subsection for: 24
(i) Staffing costs associated with hiring new employees; and 25
(ii) Investigations of alleged violations of consumer protection laws 26
in the State. 27
Article – Corporations and Associations 28
1–203.3. 29
HOUSE BILL 352 23
(a) There is a continuing, nonlapsing fund that is not subject to § 7–302 of the 1
State Finance and Procurement Article. 2
(b) (1) Subject to the appropriation process in the State budget, the 3
Department shall use the fund: 4
(i) For the costs of reviewing, processing, and auditing documents 5
filed or requested under this article or other articles of the Code; 6
(ii) To pay redemption or extinguishment amounts to former owners 7
of ground rents redeemed or extinguished in accordance with § 8–804 of the Real Property 8
Article; and 9
(iii) Subject to paragraph (2) of this subsection, for other costs 10
incurred by the Department to administer the provisions of this article. 11
(2) [For] EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS 12
SUBSECTION, FOR fiscal year 2015 and each fiscal year thereafter, the Department may 13
not use the fund to pay more than 15% of the administrative expenses of the Office of the 14
Director of the Department. 15
(3) FOR FISCAL YEARS 2026 AND 2027 ONLY, UP TO $11,000,000 OF 16
THE FUND MAY BE USED EAC H YEAR FOR GENERAL O PERATING COSTS BY TH E 17
DEPARTMENT . 18
(c) The State Treasurer shall hold and the State Comptroller shall account for 19
the fund. 20
(d) The fund shall be invested and reinvested in the same manner as other State 21
funds. 22
(e) Investment earnings shall accrue to the benefit of the fund. 23
11–208. 24
(a) In this section, “Fund” means the Securities Act Registration Fund. 25
(b) There is a Securities Act Registration Fund. 26
(f) The Fund consists of: 27
(1) Fees distributed to the Fund under § 11–407(a)(2) of this title; 28
(2) Money appropriated in the State budget to the Fund; and 29
(3) Any other money from any other source accepted for the benefit of the 30
Fund. 31 24 HOUSE BILL 352
(g) The Fund may be used [only] to administer and enforce the Maryland 1
Securities Act AND TO SUPPORT THE G ENERAL OPERATIONS OF THE MARYLAND 2
OFFICE OF THE ATTORNEY GENERAL. 3
11–407. 4
(a) (1) An applicant for initial or renewal registration as a broker–dealer shall 5
pay a fee of $250. 6
(2) (i) An applicant for initial or renewal registration or transfer of 7
registration as an agent shall pay a fee of [$50] $65. 8
(ii) From the fee paid under this paragraph, [$15] $25 shall be 9
distributed to the Securities Act Registration Fund established under § 11–208 of this title. 10
(b) (1) An applicant for initial or renewal registration as an investment 11
adviser shall pay a fee of $300. 12
(2) A federal covered adviser filing notice under § 11–405(b) of this subtitle 13
shall pay an initial fee of $300 and a renewal fee of $300. 14
(3) A private fund adviser filing notice under § 11–405(c) of this subtitle 15
shall pay an initial fee of $300 and a renewal fee of $300. 16
(4) An applicant for initial or renewal registration or transfer of 17
registration as an investment adviser representative shall pay a fee of $50. 18
(c) The Commissioner by rule may waive or reduce for any class of applicant the 19
application of the fee requirements set forth in subsection (b) of this section. 20
(d) If an application is denied or an application or notice filing is withdrawn, the 21
Commissioner shall retain the fee. 22
Article – Criminal Procedure 23
11–934. 24
(b) (1) The Governor’s Office of Crime Prevention and Policy shall help support 25
programs providing services for victims of crime throughout the State. 26
(2) The victim services programs shall be developed and located to 27
facilitate their use by alleged victims residing in surrounding areas. 28
(c) (1) The Governor’s Office of Crime Prevention and Policy may award 29
grants to public or private nonprofit organizations to operate the victim services programs. 30
HOUSE BILL 352 25
(2) Except as provided in paragraph (3) of this subsection, the programs 1
shall provide services to victims of crime as authorized by the federal Victims of Crime Act 2
and related regulations. 3
(f) (2) In each fiscal year, the Governor shall include in the annual budget bill 4
[an] A GENERAL FUND appropriation [that, together with the amount received under the 5
federal Victims of Crime Act in the prior year, totals an aggregate $60,000,000] OF 6
$35,000,000 for the victim services programs funded under this section. 7
Article – Economic Development 8
10–501. 9
(a) In this subtitle the following words have the meanings indicated. 10
(f) “Corporation” means the Maryland Agricultural and Resource –Based 11
Industry Development Corporation. 12
10–526. 13
(a) (1) In this section the following words have the meanings indicated. 14
(4) “Program” means the Maryland Watermen’s Microloan Program. 15
(b) There is a Maryland Watermen’s Microloan Program in the Corporation. 16
(g) (1) For each of fiscal years 2024 through [2026] 2025, the Governor shall 17
include in the annual State budget bill an appropriation of $500,000 to the Program. 18
13–601. 19
(a) In this subtitle the following words have the meanings indicated. 20
(c) “Council” means the Tri–County Council for Southern Maryland. 21
13–611. 22
(a) The State and Calvert, Charles, and St. Mary’s counties may jointly finance 23
the Council and its activities. 24
(b) (1) The State may provide financial support to the Council to assist in 25
carrying out the activities of the Council. 26
(3) (i) The Governor shall include in the State budget for the following 27
fiscal year an appropriation to partially support the Council. 28
26 HOUSE BILL 352
(ii) 1. For fiscal [year 2024 and each fiscal year thereafter] 1
YEARS 2024 AND 2025, the Governor shall include in the annual budget bill an 2
appropriation of $1,000,000 to the Council from the Cigarette Restitution Fund established 3
under § 7–317 of the State Finance and Procurement Article. 4
2. FOR FISCAL YEAR 2026, THE GOVERNOR SHALL 5
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $750,000 TO THE 6
COUNCIL FROM THE CIGARETTE RESTITUTION FUND ESTABLISHED UNDER § 7–317 7
OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 8
3. FOR FISCAL YEAR 2027, THE GOVERNOR SHALL 9
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $500,000 TO THE 10
COUNCIL FROM THE CIGARETTE RESTITUTION FUND ESTABLISHED UNDE R § 7–317 11
OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
4. FOR FISCAL YEAR 2028, THE GOVERNOR SHALL 13
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $250,000 TO THE 14
COUNCIL FROM THE CIGARETTE RESTITUTION FUND ESTABLISHED UNDE R § 7–317 15
OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 16
[2.] (III) The Council shall use funds appropriated from the 17
Cigarette Restitution Fund for the purpose of funding the activities of the Southern 18
Maryland Agricultural Development Commission. 19
[3.] (IV) The appropriation required under 20
[subsubparagraph 1 of this subparagraph] THIS PARAGRAPH shall be in addition to, and 21
may not supplant, any funding appropriated to the Council. 22
Article – Education 23
7–414.1. 24
(a) (1) In this section the following words have the meanings indicated. 25
(2) “Fund” means the Driver Education in Public High Schools Fund. 26
(3) “Program” means the Driver Education in Public High Schools Grant 27
Program. 28
(b) There is a Driver Education in Public High Schools Grant Program in the 29
Department. 30
(f) (1) There is a Driver Education in Public High Schools Fund. 31
(4) The Fund consists of[: 32 HOUSE BILL 352 27
(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
7–447.1. 8
(p) (1) In this subsection, “Fund” means the Coordinated Community Supports 9
Partnership Fund. 10
(3) The purpose of the Fund is to support the delivery of services and 11
supports provided to students to meet their holistic behavioral health needs and address 12
other related challenges. 13
(9) The Governor shall include in the annual budget bill the following 14
appropriations for the Fund: 15
(i) $25,000,000 in fiscal year 2022; 16
(ii) $50,000,000 in fiscal year 2023; 17
(iii) $85,000,000 in fiscal year 2024; AND 18
(iv) [$110,000,000 in fiscal year 2025; and 19
(v) $130,000,000] $40,000,000 in fiscal year [2026] 2025 and each 20
fiscal year thereafter. 21
7–810. 22
(a) (1) In this section the following words have the meanings indicated. 23
(2) “Fund” means the State–Aided Institutions Field Trip Fund. 24
(3) “Program” means the State–Aided Institutions Field Trip Grant 25
Program. 26
(b) There is a State–Aided Institutions Field Trip Grant Program in the 27
Department. 28 28 HOUSE BILL 352
(f) (1) There is a State–Aided Institutions Field Trip Fund. 1
(4) The Fund consists of[: 2
(i) Money received by the Fund from fines for vehicle security lapses 3
under § 17–106 of the Transportation Article; and 4
(ii) Any other] ANY money from any [other] source accepted for the 5
benefit of the Fund. 6
(5) The Fund may be used only for: 7
(i) Providing grants under the Program; and 8
(ii) Administrative costs of the Program. 9
7–1501. 10
(a) In this subtitle the following words have the meanings indicated. 11
(f) “Fund” means the Safe Schools Fund. 12
7–1508. 13
(e) (2) Beginning with the 2019–2020 school year, and each school year 14
thereafter, before the school year begins, each local school system shall, in accordance with 15
the plan developed under subsection (d)(2) of this section, file a report identifying: 16
(i) The public schools in the local school system’s jurisdiction that 17
have a school resource officer assigned to the school; and 18
(ii) If a public school in the local school system’s jurisdiction is not 19
assigned a school resource officer, the adequate local law enforcement coverage that will be 20
provided to the public school. 21
(g) (1) For fiscal year 2020 and each fiscal year thereafter, the Governor shall 22
include in the annual budget bill an appropriation of $10,000,000 [to the Fund] for the 23
purpose of providing grants to local school systems and local law enforcement agencies to 24
assist in meeting the requirements of subsection (e) of this section. 25
(2) Grants provided under this subsection shall be made to each local 26
school system based on the number of schools in each school system in proportion to the 27
total number of public schools in the State in the prior year. 28
7–1512. 29
HOUSE BILL 352 29
(e) The Fund consists of: 1
(1) Money credited to the Fund under § 17–106(e) of the Transportation 2
Article; 3
(2) Money appropriated in the State budget to the Fund; 4
(3) [Money appropriated to the Fund under § 7–1508 of this subtitle; 5
(4)] Money from any other source accepted for the benefit of the Fund; and 6
[(5)] (4) Any interest earnings of the Fund. 7
[(g) Beginning in fiscal year 2020 and each fiscal year thereafter, at least 8
$10,000,000 of the money in the Fund shall be used to provide grants to local school systems 9
and local law enforcement agencies as provided under § 7–1508 of this subtitle.] 10
8–415. 11
(d) (1) In this subsection, “basic cost” as to each county, means the average 12
amount spent by the county from county, State, and federal sources for the public education 13
of a nonhandicapped child. “Basic cost” does not include amounts specifically allocated and 14
spent for identifiable compensatory programs for disadvantaged children. 15
(2) As provided in paragraphs (3) and (4) of this subsection, the State and 16
the counties shall share collectively in the cost of educating children with disabilities in 17
nonpublic programs under § 8–406 of this subtitle. 18
(3) (i) Subject to the limitation under subparagraph (ii) of this 19
paragraph, for each of these children domiciled in the county, the county shall contribute 20
for each placement the sum of: 21
1. The local share of the basic cost; 22
2. An additional amount equal to 200 percent of the basic 23
cost; and 24
3. A. For fiscal year 2009, an additional amount equal to 25
20 percent of the approved cost or reimbursement in excess of the sum of items 1 and 2 of 26
this subparagraph; [and] 27
B. For fiscal [year 2010 and each subsequent fiscal year 28
thereafter] YEARS 2010 THROUGH 2025, an additional amount equal to 30 percent of the 29
approved cost or reimbursement in excess of the sum of items 1 and 2 of this subparagraph; 30
30 HOUSE BILL 352
C. FOR FISCAL YEAR 2026, AN ADDITIONAL AMOU NT 1
EQUAL TO 40 PERCENT OF THE APPRO VED COST OR REIMBURS EMENT IN EXCESS OF 2
THE SUM OF ITEMS 1 AND 2 OF THIS SUBPARAGRAPH ; AND 3
D. FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR 4
THEREAFTER , AN ADDITIONAL AMOUNT EQUAL TO 50 PERCENT OF THE APPRO VED 5
COST OR REIM BURSEMENT IN EXCESS OF THE SUM OF ITEMS 1 AND 2 OF THIS 6
SUBPARAGRAPH . 7
(ii) The amount that a county is required to contribute under 8
subparagraph (i) of this paragraph may not exceed the total cost or reimbursement amount 9
approved by the Department. 10
(4) For each of these children, the State shall contribute an amount equal 11
to the amount of the approved cost or reimbursement in excess of the amount the county is 12
required to contribute under paragraph (3) of this subsection. 13
14–405. 14
(b) (1) In order to ensure a stable and predictable level of funding, the 15
Governor shall include in the annual budget submission a General Fund grant to St. Mary’s 16
College of Maryland. 17
(2) (i) For fiscal year 1993, the grant shall be as provided for in the 18
State fiscal year 1993 appropriation. 19
(ii) For fiscal [year 1994 and each year thereafter] YEARS 1994 20
THROUGH 2025, the proposed grant shall be equal to the grant of the prior year augmented 21
by funds required to offset inflation as indicated by the implicit price deflator for State and 22
local government. 23
(iii) [Beginning in fiscal year 2019] FOR FISCAL YEARS 2019 24
THROUGH 2025, if the College’s 6–year graduation rate as reported by the Maryland 25
Higher Education Commission is 82% or greater in the second preceding fiscal year, the 26
proposed grant for the upcoming fiscal year shall be increased by 0.25%. 27
(3) (i) [Beginning in fiscal year 2019] FOR FISCAL YEARS 2019 28
THROUGH 2025, in addition to the grant provided under paragraph (2) of this subsection, 29
the College shall receive the amounts specified under this paragraph. 30
(ii) For each fiscal year, the State shall provide to the College funds 31
to pay for the increase in State–supported health insurance costs of the College. 32
(iii) For each fiscal year in which the State provides a cost–of–living 33
adjustment for State employees, the State shall provide to the College 100% of the 34
cost–of–living adjustment wage increase for State–supported employees of the College. 35 HOUSE BILL 352 31
(iv) For each fiscal year in which the State provides funds to other 1
public senior higher education institutions to moderate undergraduate resident tuition 2
increases, it is the intent of the General Assembly that the State shall provide to the College 3
funds for the same purpose. 4
(4) Funding provided under paragraph (3) of this subsection THROUGH 5
FISCAL YEAR 2025: 6
(i) May not be included in the calculation of the proposed grant 7
under paragraph (2) of this subsection for any following fiscal year; and 8
(ii) Shall be provided in the same amount in each following fiscal 9
year. 10
(5) The State shall pay the General Fund grants under this subsection to 11
the College on a quarterly basis. 12
(6) Nothing in this subsection may be construed to restrict the budgetary 13
power of the General Assembly. 14
(7) Except as provided in paragraph (3) of this subsection, the College shall 15
support all operating costs, including personnel and retirement costs, from its General 16
Fund grant and the other revenue sources of the College. 17
16–512. 18
(a) In this section, “State Funds per full–time equivalent student appropriation 19
to the 4–year public institutions of higher education” has the meaning stated in § 20
17–104(a)(1) of this article. 21
(b) (1) The total State operating fund per full–time equivalent student 22
appropriated to Baltimore City Community College for each fiscal year other than fiscal 23
year 2013, as requested by the Governor shall be: 24
(i) In fiscal year 2009, not less than an amount equal to 67.25% of 25
the State’s General Fund appropriation per full–time equivalent student to the 4–year 26
public institutions of higher education in the State as designated by the Commission for 27
the purpose of administering the Joseph A. Sellinger Program under Title 17 of this article 28
in the previous fiscal year; 29
(ii) In fiscal year 2010, not less than an amount equal to 65.1% of the 30
State’s General Fund appropriation per full–time equivalent student to the 4–year public 31
institutions of higher education in the State as designated by the Commission for the 32
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 33
the same fiscal year; 34
32 HOUSE BILL 352
(iii) In fiscal year 2011, not less than an amount equal to 65.5% of the 1
State’s General Fund appropriation per full–time equivalent student to the 4–year public 2
institutions of higher education in the State as designated by the Commission for the 3
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 4
the same fiscal year; 5
(iv) In fiscal year 2012, not less than an amount equal to 63% of the 6
State’s General Fund appropriation per full–time equivalent student to the 4–year public 7
institutions of higher education in the State as designated by the Commission for the 8
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 9
the same fiscal year; 10
(v) In fiscal year 2014, an amount that is the greater of 61% of the 11
State’s General Fund appropriation per full–time equivalent student to the 4–year public 12
institutions of higher education in the State as designated by the Commission for the 13
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 14
the same fiscal year or $5,695.63 per full–time equivalent student; 15
(vi) In fiscal year 2015, an amount that is the greater of 61% 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 or $5,695.63 per full–time equivalent student; 20
(vii) In fiscal year 2016, an amount that is the greater of 58% 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 or $5,695.63 per full–time equivalent student; 25
(viii) In fiscal year 2017, an amount that is the greater of 58% 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 or $5,695.63 per full–time equivalent student; 30
(ix) In fiscal year 2018, not less than an amount equal to 60% 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; 35
(x) In fiscal year 2019, not less than an amount equal to 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
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 39
the same fiscal year; 40 HOUSE BILL 352 33
(xi) In fiscal year 2020, not less than an amount equal to 62.5% of the 1
State’s General Fund appropriation per full–time equivalent student to the 4–year public 2
institutions of higher education in the State as designated by the Commission for the 3
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 4
the same fiscal year; 5
(xii) In fiscal year 2021, not less than an amount equal to 64.5% of the 6
State’s General Fund appropriation per full–time equivalent student to the 4–year public 7
institutions of higher education in the State as designated by the Commission for the 8
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 9
the same fiscal year; 10
(xiii) In fiscal year 2022, not less than an amount equal to 66.5% of the 11
State’s General Fund appropriation per full–time equivalent student to the 4–year public 12
institutions of higher education in the State as designated by the Commission for the 13
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 14
the same fiscal year; and 15
(xiv) In fiscal year 2023 and each fiscal year thereafter, not less than 16
an amount equal to 68.5% of the State Funds per full –time equivalent student 17
appropriation to the 4–year public institutions of higher education in the State as 18
designated by the Commission for the purpose of administering the Joseph A. Sellinger 19
Program under Title 17 of this article. 20
(2) For purposes of this subsection, the State Funds per full–time 21
equivalent student appropriation to the 4–year public institutions of higher education in 22
the State for a fiscal year shall include: 23
(i) Noncapital appropriations from the Higher Education 24
Investment Fund; and 25
(ii) Appropriations, regardless of where they are budgeted, 26
designated for the general operation of 4–year public institutions of higher education in the 27
State, including personnel–related appropriations. 28
(3) Notwithstanding the provisions of paragraph (1) of this subsection, the 29
total State operating fund appropriated to Baltimore City Community College under this 30
section for each of fiscal years 2011 and 2012 shall be $40,187,695. 31
(4) In fiscal year 2013, the total State operating funds appropriated to 32
Baltimore City Community College under this section shall be $39,863,729. 33
(5) IN FISCAL YEAR 2026, THE TOTAL STATE OPERATING FUNDS 34
APPROPRIATED TO BALTIMORE CITY COMMUNITY COLLEGE UNDER THIS SECTION 35
SHALL BE $44,734,265. 36
34 HOUSE BILL 352
(c) Notwithstanding subsection (b) of this section, the State appropriation to 1
Baltimore City Community College requested by the Governor may not be less than the 2
State appropriation to the College in the previous fiscal year. 3
18–3602. 4
(a) There is a program of Maryland Community College Promise Scholarships in 5
the State that are awarded under this subtitle. 6
(b) The purpose of the program is to provide tuition assistance for students to 7
attend a community college in the State. 8
18–3605. 9
(A) [The] THROUGH FISCAL YEAR 2025, THE Governor shall include an annual 10
appropriation of at least $15,000,000 in the State budget for the Commission to disburse 11
Maryland Community College Promise Scholarships under this subtitle. 12
(B) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR THEREAFTER , THE 13
GOVERNOR SHALL INCLUD E AN ANNUAL APPROPRI ATION OF AT LEAST $12,000,000 14
IN THE STATE BUDGET FOR THE COMMISSION TO DISBURS E MARYLAND 15
COMMUNITY COLLEGE PROMISE SCHOLARSHIPS UNDER TH IS SUBTITLE. 16
18–3701. 17
(a) In this subtitle the following words have the meanings indicated. 18
(f) “Program” means the Maryland Loan Assistance Repayment Program for 19
Police Officers and Probation Agents. 20
18–3704. 21
The Governor shall include in the annual budget bill an appropriation of at least 22
[$5,000,000] $200,000 for the Program. 23
18–3802. 24
(a) There is a Maryland Police Officers and Probation Agents Scholarship 25
Program. 26
(b) The purpose of the program is to provide tuition assistance for students who 27
are: 28
(1) Attending an eligible institution and enrolled in a degree program that 29
would further the student’s intent to become a police officer or probation agent after 30
graduation; or 31 HOUSE BILL 352 35
(2) Employed as a police officer or probation agent, attending an eligible 1
institution, and enrolled in a degree program that would further the police officer’s or 2
probation officer’s career. 3
18–3806. 4
The Governor shall include in the annual budget bill an appropriation of at least 5
[$5,000,000] $200,000 to the Commission to award scholarships under this subtitle[, and 6
the Commission shall use: 7
(1) $2,500,000 for scholarships to students intending to become police 8
officers or probation agents after graduation; and 9
(2) $2,500,000 for scholarships for existing police officers or probation 10
agents to attend an eligible institution and remain a police officer or probation agent after 11
graduation]. 12
Article – Environment 13
4–104. 14
(a) In this section, “responsible personnel” means any foreman, superintendent, 15
or project engineer who is in charge of on–site clearing and grading operations or sediment 16
control associated with a construction project. 17
(b) (1) After July 1, 1983, any applicant for sediment and erosion control plan 18
approval shall certify to the appropriate jurisdiction that any responsible personnel 19
involved in the construction project will have a certificate of attendance at a Department 20
[of the Environment] approved training program for the control of sediment and erosion 21
before beginning the project. 22
(2) A certificate shall be [valid]: 23
(I) VALID for a 3–year period[. A certificate shall be automatically]; 24
AND 25
(II) AUTOMATICALLY renewed unless the Department [of the 26
Environment] notifies the certificate holder that additional training is required. 27
(c) The appropriate governmental entity authorized to approve grading and 28
sediment control plans may waive the requirement of this section for the responsible 29
personnel on any project involving four or fewer residential units. 30
36 HOUSE BILL 352
(d) Any person may develop and conduct a training program if the program 1
content and instructor are approved by and meet the requirements set by the Department 2
of the Environment. 3
(E) (1) THE DEPARTMENT MAY ESTABL ISH BY REGULATION A FEE FOR 4
PROCESSING AND ISSUI NG THE CERTIFICATION . 5
(2) A FEE ESTABLISHED IN A CCORDANCE WITH THIS SUBSECTION 6
SHALL BE SET AT A RA TE THAT PRODUCES FUN DS APPROXIMATELY THE SAME AS 7
THE COST OF PROCESSI NG AND ISSUING THE C ERTIFICATION. 8
(3) THE DEPARTMENT SHALL DEPO SIT ANY FEE COLLECTE D IN 9
ACCORDANCE WITH THI S SUBSECTION INTO TH E MARYLAND CLEAN WATER FUND 10
ESTABLISHED UNDER § 9–320 OF THIS ARTICLE. 11
5–203.1. 12
(a) (1) In this section the following words have the meanings indicated. 13
(6) “Major project” means a project that: 14
(i) Proposes to permanently impact 5,000 square feet or more of 15
wetlands or waterways, including the 100–year floodplain; 16
(ii) Is located in an area identified as potentially impacting a 17
nontidal wetland of special State concern by a geographical information system database 18
that: 19
1. Has been developed and maintained by the Department of 20
Natural Resources; and 21
2. Is used by the Department to screen incoming 22
applications; or 23
(iii) Requires the issuance of a public notice by the Department. 24
(8) “Minor project” means a project that: 25
(i) Proposes to permanently impact less than 5,000 square feet of 26
wetlands or waterways, including the 100–year floodplain; and 27
(ii) Does not meet the definition of a major project. 28
(9) “Residential activity” means a noncommercial activity that is conducted 29
on residential property. 30
HOUSE BILL 352 37
(10) (i) “Residential property” means improved property that is used 1
primarily as a residence or unimproved property that is zoned for use as a residence. 2
(ii) “Residential property” includes: 3
1. Property owned by a homeowners’ association; and 4
2. A condominium. 5
(iii) “Residential property” does not include: 6
1. A commercial building; 7
2. A marina; or 8
3. A residential apartment complex or building. 9
(12) “TIER II HIGH QUALITY WATERSHED” MEANS THE LAND AND 10
WATER AREAS THAT DRA IN TOWARD OR INTO A TIER II HIGH QUALITY WATERSHED 11
AS DESIGNATED AND ID ENTIFIED IN A GEOGRA PHIC INFORMATION SYS TEM BY THE 12
DEPARTMENT . 13
(b) (1) Except as provided under paragraphs (2), (3), [and] (6), AND (7) of this 14
subsection, all applications for wetlands and waterways authorizations issued by the 15
Department under §§ 5–503 and 5–906 of this title and §§ 16–202, 16–302, and 16–307 of 16
this article or wetlands licenses issued by the Board of Public Works under § 16–202 of this 17
article shall be accompanied by an application fee as follows: 18
(i) For an application for a minor project or general 19
permit...............................................................................................................................[$750] 20
$980; 21
(ii) For an application for a minor modification……………….. ..[$250] 22
$330; 23
(iii) For an application for a major project with a proposed permanent 24
impact of: 25
1. Less than 1/4 acre…………………………………….. [$1,500] 26
$1,950; 27
2. At least 1/4 acre, but less than 1/2 acre…………....[$3,000] 28
$3,890; 29
3. At least 1/2 acre, but less than 3/4 acre………… ....[$4,500] 30
$5,830; 31 38 HOUSE BILL 352
4. At least 3/4 acre, but less than 1 acre…………… ....[$6,000] 1
$7,780; and 2
5. 1 acre or more.......the impact area in acres multiplied by 3
[$7,500] $9,720; and 4
(iv) For an application for a major modification………………. [$1,500] 5
$1,950. 6
(3) Except as provided in paragraph (4) of this subsection, the following 7
shall be minor projects and subject to the appropriate application fee under [paragraph] 8
PARAGRAPHS (1)(i) and (ii) AND (7)(I) of this subsection: 9
(i) A residential activity issued a permit under §§ 5–503 and 5–906 10
of this title and §§ 16–202, 16–302, and 16–307 of this article; and 11
(ii) A mining activity undertaken on affected land as identified in a 12
permit issued under Title 15 of this article. 13
(4) Subject to [paragraph] PARAGRAPHS (5) AND (7) of this subsection, 14
an application for the following minor projects shall be accompanied by the following 15
application fees: 16
(i) Installation of: 17
1. One boat lift or hoist, not exceeding four boat lifts or hoists 18
per pier; 19
2. One personal watercraft lift or hoist, not exceeding six 20
personal watercraft lifts or hoists per pier; or 21
3. A combination of boat lifts or hoists and personal 22
watercraft lifts or hoists, not exceeding six lifts or hoists per pier, of which not more than 23
four lifts or hoists are boat lifts or hoists [$300] $385; 24
(ii) Installation of a maximum of six mooring pilings…………..[$300] 25
$390; 26
(iii) In–kind repair and replacement of structures…………… ...[$300] 27
$390; 28
(iv) Installation of a fixed or floating platform on an existing pier 29
where the total platform area does not exceed 200 square feet………………………….. .[$300] 30
$390; 31
HOUSE BILL 352 39
(v) Construction of a nonhabitable structure that permanently 1
impacts less than 1,000 square feet, such as a driveway, deck, pool, shed, or 2
fence..................................................................................................................................[$300] 3
$390; 4
(vi) Replacement of an existing bulkhead where the replacement 5
bulkhead does not exceed more than 18 inches channelward of the existing 6
structure...........................................................................................................................[$500] 7
$650; and 8
(vii) In–kind repair and replacement of existing 9
infrastructure...................................................................................................................[$500] 10
$650. 11
(6) The application fee for a structural shoreline stabilization project 12
located on or adjacent to a State–owned lake may not exceed [$250] $290. 13
(7) [The fees imposed under this subsection may not be modified without 14
legislative enactment. 15
(8) (i) Subject to paragraph (7) of this subsection, the] EXCEPT AS 16
PROVIDED IN PARAGRAP HS (2) AND (5) OF THIS SUBSECTION , ALL APPLICATIONS 17
FOR WETLANDS AND WAT ERWAYS AUTHORIZATION S ISSUED BY THE DEPARTMENT 18
FOR ACTIVITIES PROPO SED IN A TIER II HIGH QUALITY WATERSHED SHALL BE 19
ACCOMPANIED BY AN AD DITIONAL APPLICATION FEE, AS FOLLOWS: 20
(I) FOR AN APPLICATION FO R A MINOR PROJECT OR MINOR 21
MODIFICATION ………………………………………………………………………….. .$400; 22
AND 23
(II) FOR AN APPLICATION FO R A MAJOR PROJECT OR MAJOR 24
PROJECT MODIFICATION ……………………………………………………………. .$1,600. 25
(8) (I) THE Department may adjust the fees established under 26
paragraphs (1), (4), [and] (6), AND (7) of this subsection to reflect changes in the consumer 27
price index for all “urban consumers” for the expenditure category “all items not seasonally 28
adjusted”, and for all regions. 29
(ii) The Annual Consumer Price Index for the period ending each 30
December, as published by the Bureau of Labor Statistics of the U.S. Department of Labor, 31
shall be used to adjust the fees established under paragraphs (1), (4), [and] (6), AND (7) of 32
this subsection. 33
(III) THE DEPARTMENT SHALL ISSU E A PUBLIC NOTICE OF THE 34
ADJUSTED FEES AT LEA ST 90 DAYS BEFORE THE NEW FEE RATES TAKE EFFEC T. 35 40 HOUSE BILL 352
(c) (1) There is a Wetlands and Waterways Program Fund. 1
(5) In accordance with subsection (e) of this section, the Department shall 2
use the Wetlands and Waterways Program Fund for activities related to: 3
(i) The issuance of authorizations by the Department under §§ 4
5–503 and 5–906 of this title and §§ 16–202, 16–302, and 16–307 of this article or the 5
issuance of wetlands licenses by the Board of Public Works under § 16–202 of this article; 6
(ii) The management, conservation, protection, and preservation of 7
the State’s wetlands and waterways resources, INCLUDING TIER II HIGH QUALITY 8
WATERS AND TIER II HIGH QUALITY WATERSHEDS ; and 9
(iii) Program development associated with this title and Title 16 of 10
this article, as provided by the State budget. 11
(d) On or before December 31 of each year, in accordance with § 2–1257 of the 12
State Government Article, the Department shall prepare and submit an annual report to 13
the House Environment and Transportation Committee, the House Appropriations 14
Committee, the Senate [Education, Health, and Environmental Affairs Committee] 15
EDUCATION, ENERGY, AND THE ENVIRONMENT COMMITTEE, and the Senate Budget 16
and Taxation Committee on the Wetlands and Waterways Program Fund, including an 17
accounting of financial receipts deposited into the Fund and expenditures from the Fund. 18
(e) The Department shall: 19
(1) Prioritize the use of the Wetlands and Waterways Program Fund to 20
improve the level of service to the regulated community; 21
(2) Identify and implement measures that will reduce delays and 22
duplication in the administration of the wetlands and waterways permit process, including 23
the processing of applications for wetlands and waterways permits in accordance with § 24
1–607 of this article; and 25
(3) In conjunction with the Department of Natural Resources, identify up 26
to three types of structural shoreline stabilization practices that may be implemented on 27
or adjacent to a State–owned lake. 28
6–843. 29
(a) (1) Except as provided in this subsection and subsection (b) of this section, 30
and in cooperation with the Department of Housing and Community Development, the 31
State Department of Assessments and Taxation, and other appropriate governmental 32
units, the Department shall provide for the collection of an annual fee for every rental 33
dwelling unit in the State. 34
HOUSE BILL 352 41
(2) [The annual fee for an affected property is $30] FOR AN AFFECTED 1
PROPERTY, THE FEE: 2
(I) IS $120; AND 3
(II) SHALL BE COLLECTED BY THE DEPARTMENT ONCE EVERY 4
2 YEARS. 5
(3) (i) Subject to the provisions of subparagraphs (ii) and (iii) of this 6
paragraph, on or before December 31, 2000, the [annual] fee for a rental dwelling unit built 7
after 1949 that is not an affected property is $5. After December 31, 2000, there is no 8
[annual] fee for a rental dwelling unit built after 1949 that is not an affected property. 9
(ii) The owner of a rental dwelling unit built after 1949 that is not 10
an affected property may not be required to pay the fee provided under this paragraph if 11
the owner certifies to the Department that the rental dwelling unit is lead free pursuant to 12
§ 6–804 of this subtitle. 13
(iii) An owner of a rental dwelling unit who submits a report to the 14
Department that the rental dwelling unit is lead free pursuant to § 6–804 of this subtitle 15
shall include a [$10] $50 processing fee with the report. 16
(b) The fees imposed under this section do not apply to any rental dwelling unit: 17
(1) Built after 1978; or 18
(2) Owned and operated by a unit of federal, State, or local government, or 19
any public, quasi–public, or municipal corporation. 20
(c) (1) The fee imposed under this section shall be paid on or before December 21
31, 1995, or the date of registration of the affected property under Part III of this subtitle 22
and on or before December 31 [of each] EVERY OTHER year thereafter or according to a 23
schedule established by the Department by regulation. 24
(2) THE DEPARTMENT MAY ESTABL ISH A PROTOCOL TO ST AGGER 25
REGISTRATIONS OF AFF ECTED PROPERTY UNDER PART III OF THIS SUBTITLE TO 26
EQUALLY DIVIDE REGIS TRATIONS OVER SEQUEN TIAL CALENDAR YEARS . 27
(d) An owner who fails to pay the fee imposed under this section is liable for a 28
civil penalty of up to triple the amount of each registration fee unpaid that, together with 29
all costs of collection, including reasonable attorney’s fees, shall be collected in a civil action 30
in any court of competent jurisdiction. 31
7–503. 32
(a) There is a Voluntary Cleanup Program in the Department. 33 42 HOUSE BILL 352
7–506. 1
(a) (1) To participate in the Program, an applicant shall: 2
(i) Submit an application, on a form provided by the Department, 3
that includes: 4
1. Information demonstrating to the satisfaction of the 5
Department that the contamination did not result from the applicant knowingly or willfully 6
violating any law or regulation concerning controlled hazardous substances; 7
2. Information demonstrating the person’s status as a 8
responsible person or an inculpable person; 9
3. Information demonstrating that the property is an eligible 10
property as defined in § 7–501 of this subtitle; 11
4. A detailed report with all available relevant information 12
on environmental conditions including contamination at the eligible property known to the 13
applicant at the time of the application; 14
5. An environmental site assessment that includes: 15
A. Established Phase I site assessment standards and follows 16
principles established by the American Society for Testing and Materials and that 17
demonstrates to the satisfaction of the Department that the assessment has been conducted 18
in accordance with those standards and principles; and 19
B. A Phase II site assessment unless the Department 20
concludes, after review of the Phase I site assessment, that there is sufficient information 21
to determine that there are no recognized environmental conditions, as defined by the 22
American Society for Testing and Materials; and 23
6. A description, in summary form, of a proposed voluntary 24
cleanup project that includes the proposed cleanup criteria under § 7–508 of this subtitle 25
and the proposed future use of the property, if appropriate; and 26
(ii) Subject to paragraph (2) of this subsection, pay to the 27
Department: 28
1. An initial application fee of [$6,000] $10,000 which the 29
Department may reduce on a demonstration of financial hardship in accordance with 30
subsection (b) of this section; 31
2. An application fee of $2,000 for each application submitted 32
subsequent to the initial application for the same property; [and] 33 HOUSE BILL 352 43
3. An application fee of $2,000 for each application submitted 1
subsequent to the initial application for contiguous or adjacent properties that are part of 2
the same planned unit development or a similar development plan; AND 3
4. IF THE DIRECT COSTS O F REVIEW OF THE 4
APPLICATION AND ADMI NISTRATION AND OVERS IGHT OF THE RESPONSE ACTION 5
PLAN EXCEED THE APPL ICATION FEE, THE ADDITIONAL COSTS INCURRED BY THE 6
DEPARTMENT . 7
(2) If an applicant certifies that the applicant intends to use the eligible 8
property to generate clean or renewable energy, the Department shall waive the fees 9
required under paragraph (1)(ii) of this subsection. 10
9–228. 11
(g) (1) (i) [Beginning on February 1, 1992,] THE DEPARTMENT SHALL 12
ESTABLISH a tire recycling fee [shall] TO be imposed on the first sale of a new tire in the 13
State by a tire dealer, including new tires sold as part of a new or used vehicle, trailer, farm 14
implement, or other similar machinery. 15
(ii) A county, municipal corporation, or any agency of a county or 16
municipal corporation may not impose any tax, fee, or other charge on the first sale of a 17
new tire by a tire dealer. 18
(2) The tire recycling fee: 19
(I) SHALL BE SET AT $1 PER TIRE BEGINNING JANUARY 1, 20
2026; 21
(II) SUBJECT TO ITEM (III) OF THIS PARA GRAPH, MAY BE 22
ADJUSTED FOR INFLATI ON EVERY 2 FISCAL YEARS BASED O N THE CONSUMER 23
PRICE INDEX, AS DETERMINED BY THE DEPARTMENT ; AND 24
[(i)] (III) May not exceed [$1.00] $2 per tire[; and 25
(ii) Shall be established by the Board of Public Works]. 26
(3) For a sale made by a tire dealer to a person who resells tires, the tire 27
dealer shall separately state its recycling fees paid by the tire dealer on the invoice or other 28
document of sale. 29
(4) (i) Each tire dealer shall: 30
1. Pay the tire recycling fee; and 31
44 HOUSE BILL 352
2. Complete and submit, under oath, a return and remit the 1
fees to the Comptroller of the Treasury on or before the 21st day of the month that follows 2
the month in which the sale was made, and for other periods and on other dates that the 3
Comptroller specifies by regulation, including periods for which no fees were due. 4
(ii) For periods beginning after December 31, 2026, a person shall 5
file a tire recycling fee return electronically. 6
(5) A tire dealer who timely files a tire recycling fee return and pays the 7
tire recycling fees due is allowed, for the expense of administering and paying the fee, a 8
credit equal to 0.6% of the gross amount of tire recycling fees that the tire dealer is to pay 9
to the Comptroller. 10
(6) If the amount of the tire recycling fee is separately stated in a retail 11
sale, the tire recycling fee is not subject to any tax under Title 11 of the Tax – General 12
Article or Title 13 of the Transportation Article. 13
(7) At the end of each quarter, the Comptroller shall forward all tire 14
recycling fees to the Used Tire Cleanup and Recycling Fund, less the costs of 15
administration. 16
(8) Except to the extent they are inconsistent with this subsection, the 17
provisions of Title 13 of the Tax – General Article applicable to the sales and use tax shall 18
govern the administration, collection, and enforcement of the tire recycling fee under this 19
subsection. 20
(9) The Comptroller: 21
(i) Shall administer the tire recycling fee; and 22
(ii) May adopt any regulations that are necessary or appropriate to 23
administer, collect, and enforce the tire recycling fee. 24
9–274. 25
(a) The State Used Tire Cleanup and Recycling Fund shall consist of moneys 26
made available under: 27
(1) Loan authorizations; 28
(2) Funds appropriated in the State budget; 29
(3) Fees collected for the sale of tires by retail dealers under § 9–228(g) of 30
this subtitle; or 31
(4) Bond and security forfeitures collected under § 9–228(k) of this subtitle. 32
HOUSE BILL 352 45
(b) (1) The Fund is limited to a maximum of $10,000,000. 1
(2) If the sum of unallocated funds in the Fund and the projected fees for 2
the next fiscal year exceeds $10,000,000, the [Board of Public Works] DEPARTMENT shall 3
adjust the fees for the next fiscal year on a pro rata basis so that the sum of unallocated 4
and actual fees does not exceed $10,000,000. 5
15–807. 6
(a) Except as otherwise provided in this subtitle, a person may not engage in 7
surface mining within the State without first obtaining a surface mining license. 8
(b) (1) An application for a license shall be in writing and on a form prepared 9
and furnished by the Department. 10
(2) If the application is made by a corporation, partnership, or association 11
[it], THE APPLICATION shall contain information concerning its officers, directors, and 12
principal owners, as the Department reasonably requires. 13
(c) (1) The application shall be accompanied by a [$300] $500 fee. [The] 14
(2) (I) A LICENSE RENEWAL FEE IS $300. 15
(II) A license shall be renewable annually[, and the renewal fee is 16
$150]. 17
(III) The application for renewal shall be made annually by January 18
1. 19
(d) The Department may not issue any new surface mining license or renew any 20
existing surface mining license to any person if it finds, after investigation, that the 21
applicant has failed and continues to fail to comply with any of the provisions of this 22
subtitle. 23
(f) (1) Any person who violates the provisions of this section is guilty of a 24
misdemeanor and, on conviction, is subject to a fine of not more than $10,000. 25
(2) The fine shall be paid to the Surface Mined Land Reclamation Fund. 26
15–808. 27
(a) A licensee may not engage in surface mining within the State except on 28
affected land that is covered by a valid surface mining permit. 29
(c) A permit may cover more than one tract of land, if the tracts are contiguous 30
and are described in the application. 31 46 HOUSE BILL 352
(f) (1) The fee for an original permit shall be [$12 for each acre of affected land 1
for each year of operation requested, but the fee may not exceed $1,000 per year]: 2
(I) $25 FOR EACH ACRE OF AFF ECTED LAND FOR EACH YEA R OF 3
OPERATION, NOT TO EXCEED $5,000; AND 4
(II) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 5
SUBSECTION, 1 CENT PER TON OF MINE D MATERIAL SOLD PER YEAR. 6
(2) THE PER TON OF MATERI AL SOLD FEE IN PARAG RAPH (1) OF THIS 7
SUBSECTION SHAL L BE INCREASED BY .25 CENT PER TON IN FISC AL YEAR 2028 AND 8
EVERY 2 FISCAL YEARS THEREAF TER. 9
(g) The fee shall be paid annually during the term of the permit. 10
(h) (1) If the term of the permit exceeds 5 years, the permittee shall pay 11
additional fees, based on the formula in subsection (f) of this section for each 5–year portion 12
of the term of the permit. These additional fees shall be paid to the Department within 1 13
year before the completion of each 5–year portion of the term of the permit. 14
(2) Any permit that was granted on or before June 30, 1985, is not subject 15
to the additional fees required by paragraph (1) of this subsection until the time of 16
modification or renewal of the permit under §§ 15–815 and 15–816 of this subtitle. 17
(i) In addition, before a surface mining permit is issued the applicant shall pay a 18
special reclamation fee of $30 for each acre of land affected. The payment shall be based on 19
the same number of acres as that for which bond is required. 20
(k) (1) Any person who violates the provisions of this section or who knowingly 21
or intentionally has filed false information in the application for a permit, or who has not 22
fully complied with all provisions and requirements of the permit, is guilty of a 23
misdemeanor, and, on conviction, is subject to a fine of: 24
(i) Not more than $25,000; and 25
(ii) An amount sufficient to cover the cost of reclaiming the affected 26
land. 27
(2) The fine and any payment for reclamation shall be paid into the Surface 28
Mined Land Reclamation Fund. 29
15–815. 30
(a) (1) Any permittee engaged in surface mining under a surface mining 31
permit may apply at any time for modification of the permit. 32 HOUSE BILL 352 47
(2) The application shall be in writing on forms furnished by the 1
Department and fully state the information called for. 2
(3) [In addition, the] THE applicant may be required to furnish [other] 3
ADDITIONAL information THAT the Department reasonably deems necessary to enforce 4
this subtitle. [However, it is not necessary to resubmit information which has not changed 5
since the original application, if the applicant so states in writing] 6
(4) IF AN APPLICANT STATE S IN WRITING THAT IN FORMATION HAS 7
NOT CHANGED SINCE TH E ORIGINAL APPLICATI ON, THE APPLICANT IS NOT 8
REQUIRED TO RESUBMIT THAT INFORMATION . 9
(b) (1) A modification under this section may affect [the]: 10
(I) THE land area covered by the permit[, the]; 11
(II) THE approved mining and reclamation plan coupled with the 12
permit[, or other]; OR 13
(III) OTHER terms and conditions of the permit. 14
(2) (I) A permit may be modified to include land contiguous to the 15
existing affected land, but not other lands. 16
(II) The mining and reclamation plan may be modified in any 17
manner, if the Department determines that the modified plan fully meets the standards 18
set forth in § 15–822 of this subtitle and that the modifications would be generally 19
consistent with the bases for the issuance of the original permit. 20
(III) Other terms and conditions may be modified only if the 21
Department determines that the permit as modified would meet the requirements of §§ 22
15–808 and 15–810 of this subtitle. [No] 23
(IV) A modification may NOT extend the expiration date of any 24
permit issued under this subtitle. 25
(c) Except as otherwise provided in subsection (d) of this section, a [$100] $200 26
fee shall be charged for a permit modification. 27
(d) (1) In addition to the fee required in subsection (c) of this section, a fee shall 28
be charged equal to [$12 for each additional acre of affected land over and above the amount 29
of land covered in the original permit, for each year of operation]: 30
48 HOUSE BILL 352
(I) $25 FOR EACH ADDITIONAL ACRE OF AFFECTED LAN D OVER 1
AND ABOVE THE AMOUNT OF LAND COVERED IN T HE ORIGINAL PERMIT F OR EACH 2
YEAR OF OPERATION, NOT TO EXCEED $5,000; AND 3
(II) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 4
SUBSECTION, 1 CENT PER TON OF MINE D MATERIAL SOLD PER YEAR. 5
(2) [The additional fee may not exceed $1,000 per year] THE PER TON OF 6
MATERIAL SOLD FEE IN PARAGRAPH (1) OF THIS SUBSECTION S HALL BE INCREASED 7
BY .25 CENT PER TON IN FISC AL YEAR 2028 AND EVERY 2 FISCAL YEARS 8
THEREAFTER . 9
(e) The Department shall approve and grant the permit modification requested 10
as expeditiously as possible but not later than 30 days after the application forms or any 11
supplemental information required are filed with the Department. 12
(f) The Department may deny the permit modification on finding: 13
(1) An uncorrected violation of the type listed in § 15–810(b)(7) of this 14
subtitle; 15
(2) Failure to submit an adequate mining and reclamation plan in light of 16
conditions existing at the time of the modification; or 17
(3) Failure or refusal to pay the modification fee. 18
(g) If the Department denies an application to modify a permit, the Department 19
shall give the permittee written notice of: 20
(1) The Department’s determination; 21
(2) Any changes in the application which would make it acceptable; and 22
(3) The permittee’s right to a hearing at a stated time and place. 23
(h) The date for the hearing may not be less than 15 days nor more than 30 days 24
after the date of the notice unless the Department and the permittee mutually agree on 25
another date. 26
15–816. 27
(a) (1) The procedure to be followed and standards to be applied in renewing a 28
permit shall be the same as those for the initial application for a permit[, except that it is 29
not necessary to resubmit information which has not changed since the time of the original 30
application, if the applicant so states in writing. However, the applicant may be required]. 31
HOUSE BILL 352 49
(2) IF AN APPLICANT STATE S IN WRITING THAT IN FORMATION HAS 1
NOT CHANGED SINCE TH E ORIGINAL APPLICATI ON, THE APPLICANT IS NOT 2
REQUIRED TO RESUBMIT THAT INFORMATION . 3
(3) THE DEPARTMENT MAY REQUIR E AN APPLICANT to furnish other 4
information the Department deems necessary to evaluate the renewal request. 5
(4) In the absence of any changes in legal requirements for the issuance of 6
a permit since the date on which the original permit was issued, the only basis for the denial 7
of a renewal permit shall be: 8
[(1)] (I) An uncorrected violation of the type listed in § 15–810(b)(7) of 9
this subtitle; 10
[(2)] (II) Failure to submit an adequate mining and reclamation plan in 11
light of conditions existing at the time of renewal; or 12
[(3)] (III) Failure or refusal to pay the renewal fee. 13
(b) Application for a renewal of a permit cannot be made any earlier than 1 year 14
prior to the expiration date of the original permit. 15
(c) (1) Except as otherwise provided in subsection (d) of this section, the fee to 16
be charged for a permit renewal shall be [$12 for each acre of affected land for each year of 17
operation, but not exceeding $1,000 per year]: 18
(I) $25 FOR EACH ACRE OF AFF ECTED LAND FOR EACH YEAR OF 19
OPERATION, NOT TO EXCEED $5,000; AND 20
(II) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 21
SUBSECTION, 1 CENT PER TON OF MINE D MATERIAL SOLD PER YEAR. 22
(2) THE PER TON OF MATERI AL SOLD FEE IN PARAG RAPH (1) OF THIS 23
SUBSECTION SHALL BE INCREASED BY .25 CENT PER TON IN FISC AL YEAR 2028 AND 24
EVERY 2 FISCAL YEARS THEREAF TER. 25
(d) The fee shall be paid annually during the term of the permit. 26
(e) (1) If the term of a permit which is renewed exceeds 5 years, the permittee 27
shall pay additional fees, based on the formula in subsection (c) of this section, for each 28
5–year portion of the term of the renewed permit. 29
(2) These additional fees shall be paid to the Department within 1 year 30
before the completion of any 5–year portion of the term of the permit. 31
50 HOUSE BILL 352
(f) If the Department denies an application to renew a permit, the Department 1
shall give the permittee written notice of: 2
(1) The Department’s determination; 3
(2) Any changes in the application that would make it acceptable; and 4
(3) The permittee’s right to a hearing at a stated time and place. 5
(g) The date for the hearing may not be less than 15 days nor more than 30 days 6
after the date of the notice unless the Department and the permittee mutually agree on 7
another date. 8
15–819. 9
(a) When the interest of a permittee in any uncompleted mining operation is sold, 10
leased, assigned, or otherwise disposed of, the Department may release the first permittee 11
from all liabilities imposed upon him by this subtitle with reference to the operation and 12
transfer the permit to the successor in interest, if both the permittee and the successor in 13
interest have complied with the requirements of this subtitle and the successor in interest 14
assumes the duties and responsibilities of the first permittee with reference to reclamation 15
of the land according to the authorized mining and reclamation plan and posts suitable 16
bond or other security required by § 15–823 of this subtitle. 17
(b) The successor in interest shall pay a [$500] $1,000 fee on filing a transfer of 18
permit. 19
(c) The Department shall approve and grant the permit transfer as expeditiously 20
as possible but not later than 30 days after the application forms or any supplemental 21
information required are filed with the Department. 22
(d) The Department may deny the permit transfer on finding: 23
(1) That either permittee has an uncorrected violation of the type listed in 24
§ 15–810(b)(7) of this subtitle; 25
(2) Failure of the successor permittee to submit an adequate mining and 26
reclamation plan in light of conditions existing at the time of the modification; or 27
(3) Failure of the successor permittee to pay the transfer fee. 28
(e) If the Department denies an application to transfer a permit, the Department 29
shall give the permittee and the successor in interest 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 51
(3) The right of the permittee and the successor in interest to a hearing at 1
a stated time and place. 2
(f) The date for the hearing may not be less than 15 days nor more than 30 days 3
after the date of the notice unless the parties mutually agree on another date. 4
Article – Financial Institutions 5
13–1114. 6
(a) There is a Maryland Heritage Areas Authority Financing Fund. 7
(g) (1) In this subsection, “Program Open Space funds transferred to the 8
Authority” means the money appropriated to the Fund from Program Open Space funds 9
under § 5–903(a) of the Natural Resources Article. 10
(2) Except as provided in paragraph (3) of this subsection, Program Open 11
Space funds transferred to the Authority may not be used to pay the operating expenses of 12
the Authority, debt service of bonds issued by the Authority, or administrative expenses 13
related to bonds issued by the Authority. 14
(3) (i) Up to 10% of Program Open Space funds transferred to the 15
Authority may be used to pay the operating expenses of the Authority. 16
(ii) Up to 50% of Program Open Space funds transferred to the 17
Authority may be expended for debt service on bonds issued by the Authority. 18
(iii) For fiscal year 2012 only, an additional $500,000 of Program 19
Open Space funds transferred to the Authority may be used to pay operating expenses in 20
the Department of Planning. 21
(IV) FOR FISCAL YEAR 2026 ONLY, AN ADDITIONAL $340,000 OF 22
PROGRAM OPEN SPACE FUNDS TRANSFERR ED TO THE AUTHORITY MAY BE USED TO 23
PAY OPERATING EXPENS ES IN THE DEPARTMENT OF PLANNING. 24
Article – Health – General 25
7–101. 26
(a) In this title the following words have the meanings indicated. 27
(b) “Administration” means the Developmental Disabilities Administration. 28
(l) (1) “Individual–directed and family–directed goods and services” means 29
services, equipment, activities, or supplies for individuals who self–direct services that: 30
52 HOUSE BILL 352
(i) Relate to a need or goal identified in the person–centered plan of 1
service; 2
(ii) Maintain or increase independence; 3
(iii) Promote opportunities for community living and inclusion; and 4
(iv) Are not available under another waiver service or services 5
provided under the State plan established in Subtitle 3 of this title. 6
(2) “Individual–directed and family–directed goods and services” includes 7
all goods or services authorized by regulations adopted or guidance issued by the federal 8
Centers for Medicare and Medicaid Services under § 1915(c) of the Social Security Act. 9
7–205. 10
(a) (1) There is a continuing, nonlapsing Waiting List Equity Fund in the 11
Maryland Department of Health. 12
(b) Subject to the appropriation process in the annual operating budget, the 13
Department shall use the Waiting List Equity Fund for providing community–based 14
services to individuals eligible for, but not receiving, services from the Developmental 15
Disabilities Administration. 16
(e) (1) [(i)] The Department shall adopt regulations for the management 17
and use of the money in the Fund. 18
[(ii)] (2) The regulations shall authorize the use of money in the 19
Fund to provide services to individuals: 20
[1.] (I) Who are in crisis and need emergency services; and 21
[2.] (II) Who are not in crisis and do not need emergency 22
services. 23
[(2) The Waiting List Equity Fund may not be used to supplant funds 24
appropriated for: 25
(i) Emergency community placements; or 26
(ii) Transitioning students.] 27
7–409. 28
(c) (1) Subject to paragraph (2) of this subsection, the Administration may not 29
establish a limit on[: 30 HOUSE BILL 352 53
(i) The dollar amount of individual–directed and family–directed 1
goods and services provided to a recipient; or 2
(ii) The] THE number of hours of personal support services provided 3
to a recipient who receives self–directed services that: 4
[1.] (I) Are necessary for the health and safety of the 5
recipient; and 6
[2.] (II) Are authorized by regulations adopted or guidance 7
issued by the federal Centers for Medicare and Medicaid Services under § 1915(c) of the 8
Social Security Act. 9
(2) A recipient may not receive services or supports in excess of the 10
recipient’s annual approved budget. 11
7–717. 12
(a) (1) In this part, “low intensity support services” means a program designed 13
to: 14
(i) Enable a family to provide for the needs of a child or an adult 15
who is living in the home and has a severe chronic disability that: 16
1. Is attributable to a physical or mental impairment, other 17
than the sole diagnosis of mental illness, or to a combination of physical and mental 18
impairments; and 19
2. Is likely to continue indefinitely; or 20
(ii) Support an adult who is living in the community and has a severe 21
chronic disability that: 22
1. Is attributable to a physical or mental impairment, other 23
than the sole diagnosis of mental illness, or to a combination of physical and mental 24
impairments; and 25
2. Is likely to continue indefinitely. 26
(2) “Low intensity support services” includes the services and items listed 27
in §§ 7–701(d) and 7–706(c) of this subtitle. 28
(b) There is a Low Intensity Support Services Program in the Administration. 29
(c) Low intensity support services shall be flexible to meet the needs of 30
individuals or families. 31 54 HOUSE BILL 352
(d) (1) (I) [The] THROUGH FISCAL YEAR 2025, THE Administration shall 1
establish a cap of no less than $2,000 of low intensity support services per individual per 2
fiscal year to a qualifying individual. 3
(II) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 4
THEREAFTER , THE ADMINISTRATION SHALL ESTABLISH A CAP OF N O LESS THAN 5
$500 OF LOW INTENSITY SUP PORT SERVICES PER INDIVIDUAL PER F ISCAL YEAR TO 6
A QUALIFYING INDIVID UAL. 7
(2) The Administration may waive the cap on low intensity support 8
services provided under paragraph (1) of this subsection. 9
(e) (1) An individual seeking low intensity support services is not required to: 10
(i) Submit an application to the Department as provided in § 7–403 11
of this title; or 12
(ii) Complete an application for the Medical Assistance Program if 13
the low intensity support services will be provided to a minor. 14
(2) The Department may develop a simplified application process for low 15
intensity support services. 16
(f) The Administration shall deliver services to an eligible individual seeking low 17
intensity support services dependent on the availability and allocation of funds provided by 18
the Administration. 19
10–101. 20
(a) In this title the following words have the meanings indicated. 21
(b) “Administration” means the Behavioral Health Administration. 22
(f) “Director” means the Director of the Behavioral Health Administration. 23
10–1203. 24
(a) To the extent resources are available, the Director, after consultation with the 25
Behavioral Health Advisory Council as established in Title 7.5, Subtitle 3 of this article and 26
federal requirements mandated under P.L. 99–660, may initiate the development of core 27
service agencies, local addictions authorities, or local behavioral health authorities as a 28
mechanism for community planning, management, and financing of mental health and 29
substance–related disorder services. 30
(c) To assure the continuing provision of appropriate services, the Director shall: 31
HOUSE BILL 352 55
(1) Annually review and may approve the core service agencies’, local 1
addictions authorities’, or local behavioral health authorities’ program plan; 2
(2) In conjunction with the appropriate authorities, establish and maintain 3
a funding mechanism for the core service agencies, local addictions authorities, or local 4
behavioral health authorities which may include the allocation of funds for inpatient 5
services; 6
(3) Develop a mechanism whereby any unexpended funds remaining at the 7
end of the year [shall] MAY remain with the core service agencies, local addictions 8
authorities, or local behavioral health authorities or the community providers; 9
(4) Establish procedures to facilitate intraagency and interagency linkages 10
at State and local levels with the core service agencies, local addictions authorities, or local 11
behavioral health authorities; and 12
(5) Establish procedures within the Behavioral Health Administration for 13
a process regarding program, policy, or contract disputes that gives all community mental 14
health and substance–related disorder programs regulated by the Administration the right 15
to: 16
(i) Access the mediation process established by the Administration; 17
and 18
(ii) If dissatisfied with the outcome of the mediation by the 19
Administration, request a hearing with the Office of Administrative Hearings in accordance 20
with Title 10, Subtitle 2 of the State Government Article. 21
13–1116. 22
(a) (1) (i) For each of fiscal years 2011 and 2012: 23
1. The Governor shall include at least $2,400,000 in the 24
annual budget in appropriations for the Statewide Academic Health Center Cancer 25
Research Grants under this section; and 26
2. The Grants shall be distributed between the Statewide 27
Academic Health Centers as follows: 28
A. $2,007,300 to the University of Maryland Medical Group; 29
and 30
B. $392,700 to the Johns Hopkins Institutions. 31
(ii) For fiscal [year] YEARS 2013 [and each fiscal year thereafter] 32
THROUGH 2025: 33
56 HOUSE BILL 352
1. The Governor shall include at least $13,000,000 in the 1
annual budget in appropriations for the Statewide Academic Health Center Cancer 2
Research Grants under this section; and 3
2. The Grants shall be distributed according to historical 4
allocations between the Academic Health Centers. 5
(III) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 6
THEREAFTER : 7
1. THE GOVERNOR MAY INCLUDE AT LEAST $13,000,000 8
IN THE ANNUAL BUDGET IN APPROPRIATIONS FO R THE STATEWIDE ACADEMIC 9
HEALTH CENTER CANCER RESEARCH GRANTS UNDER THIS SEC TION; AND 10
2. THE GRANTS SHALL BE DISTR IBUTED ACCORDING TO 11
HISTORICAL ALLOCATIO NS BETWEEN THE ACADEMIC HEALTH CENTERS. 12
(2) Subject to the other provisions of this section, the Department may 13
distribute Statewide Academic Health Center Cancer Research Grants to the University of 14
Maryland Medical Group and the Johns Hopkins Institutions for the purpose of enhancing 15
cancer research activities that may lead to a cure for a targeted cancer and increasing the 16
rate at which cancer research activities are translated into treatment protocols in the State. 17
15–157. 18
(A) IN THIS SECTION, “FUND” MEANS THE MEDICAID PRIMARY CARD CARE 19
PROGRAM FUND. 20
(B) THERE IS A MEDICAID PRIMARY CARD CARE PROGRAM FUND IN THE 21
DEPARTMENT . 22
(C) THE PURPOSE OF THE FUND IS TO SERVE AS T HE FOUNDATION FOR 23
ADVANCING PRIMARY CA RE IN THE STATE UNDER THE ADVANCING ALL–PAYER 24
HEALTH EQUITY APPROACHES AND DEVELOPMENT (AHEAD) MODEL. 25
(D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 26
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 27
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 28
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 29
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 30
(F) THE FUND CONSISTS OF : 31
HOUSE BILL 352 57
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 1
(2) HOSPITAL PAYMENTS ADM INISTERED ON A ONE–TIME BASIS, 2
THROUGH A UNIFORM AN D BROAD–BASED ASSESSMENT VIA THE MEDICARE 3
SAVINGS COMPONENT FO R CALENDAR YEAR 2023 BY THE HEALTH SERVICES COST 4
REVIEW COMMISSION; AND 5
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 6
THE BENEFIT OF THE FUND. 7
(G) THE FUND MAY BE USED TO : 8
(1) IMPLEMENT A MEDICAID PRIMARY CARE ADVANCED PAYMENT 9
MODEL PROGRAM AS REQ UIRED UNDER THE AHEAD COOPERATIVE AGREEMEN T; 10
AND 11
(2) SUPPORT PRIMARY CARE PROVIDERS SERVING EN ROLLEES OF 12
THE MEDICAL ASSISTANCE PROGRAM THROUGH INVES TMENTS THAT INCLUDE 13
INCREASED RE IMBURSEMENT FOR EVAL UATION AND MANAGEMEN T CODES, CARE 14
MANAGEMENT FEES TO E LIGIBLE PRACTICES , AND QUALITY INCENTIV ES. 15
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 16
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 17
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 18
THE GENERAL FUND OF THE STATE. 19
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 20
WITH THE STATE BUDGET . 21
15–1004. 22
(a) There is a Senior Prescription Drug Assistance Program Fund. 23
(f) (1) Except as provided in paragraphs (2) and (3) of this subsection, the 24
Fund may be used only for the administration, operation, and activities of the Program. 25
(2) For fiscal year 2025 and each fiscal year thereafter, excess funds not 26
required for the administration, operation, and activities of the Program may be used only 27
to subsidize: 28
(i) The Kidney Disease Program under Title 13, Subtitle 3 of this 29
article; or 30
58 HOUSE BILL 352
(ii) The provision of mental health services to the uninsured under 1
Title 10, Subtitle 2 of this article. 2
(3) For fiscal year [2025 only] 2026 AND EACH FISCAL YEAR 3
THEREAFTER , excess funds not required for the administration, operation, and activities 4
of the Program may be used for health reimbursement accounts established in accordance 5
with § 105(h) of the Internal Revenue Code under § 2–509.1 of the State Personnel and 6
Pensions Article. 7
19–112. 8
(a) (1) In this section the following words have the meanings indicated. 9
(2) “Center” means a Patient Safety Center designated by the Commission. 10
(3) “Fund” means the Maryland Patient Safety Center Fund. 11
(d) (1) There is a Patient Safety Center Fund. 12
(2) The purpose of the Fund is to subsidize a portion of the costs of the 13
Center so that the Center may perform the duties described under subsection (c) of this 14
section. 15
(e) (1) (I) For fiscal [year 2023 and each fiscal year thereafter] YEARS 16
2023 THROUGH 2025, the Governor shall include in the annual budget bill an 17
appropriation of $1,000,000 for the Fund. 18
(II) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 19
THEREAFTER , THE GOVERNOR MAY INCLUDE IN THE ANNUAL BUDGET BILL AN 20
APPROPRIATION OF $1,000,000 FOR THE FUND. 21
24–1101. 22
(a) In this subtitle the following words have the meanings indicated. 23
(c) “Trust Fund” means the Community Services Trust Fund. 24
24–1105. 25
(a) The Trust Fund may only be used in accordance with this section. 26
(b) In accordance with an appropriation approved by the General Assembly in the 27
State budget, the Comptroller shall transfer: 28
HOUSE BILL 352 59
(1) The investment earnings of the Developmental Disabilities 1
Administration account of the Trust Fund into the Waiting List Equity Fund established 2
under § 7–205 of this article; and 3
(2) The proceeds and investment earnings of the Behavioral Health 4
Administration account of the Trust Fund into the Mental Hygiene Community–Based 5
Services Fund established under § 10–208 of this article. 6
(C) FOR FISCAL YEAR 2026 ONLY, THE DEVELOPMENTAL DISABILITIES 7
ADMINISTRATION MAY US E MONEY IN THE TRUST FUND FOR PROVIDER 8
REIMBURSEMENTS . 9
Article – Health Occupations 10
8–206. 11
(a) There is a Board of Nursing Fund. 12
(e) (1) [(i)] The Board of Nursing Fund shall be used exclusively to cover the 13
actual documented direct and indirect costs of fulfilling the statutory and regulatory duties 14
of the Board as provided by the provisions of this title. 15
[(ii) The Board of Nursing Fund may not be used to pay for 16
infrastructure operations, as defined in § 1–203(b) of this article.] 17
(2) (i) The Board of Nursing Fund is a continuing, nonlapsing fund, not 18
subject to § 7–302 of the State Finance and Procurement Article. 19
(ii) Any unspent portions of the Board of Nursing Fund may not be 20
transferred or revert to the General Fund of the State, but shall remain in the Board of 21
Nursing Fund to be used for the purposes specified in this title. 22
(3) No other State money may be used to support the Board of Nursing 23
Fund. 24
Article – Housing and Community Development 25
4–511. 26
(a) In this section, “Fund” means the Continuing the CORE Partnership Fund. 27
(b) There is a Continuing the CORE Partnership Fund. 28
(c) The purpose of the Fund is to assist the Department, in conjunction with the 29
Maryland Stadium Authority and Baltimore City, in expeditiously removing blighted 30
property within Baltimore City. 31 60 HOUSE BILL 352
(j) (1) For fiscal year 2020, the Governor may include in the annual budget 1
bill an appropriation of $30,000,000 to the Fund. 2
(2) For fiscal years 2021 through 2024, the Governor may include in the 3
annual budget bill an appropriation of $25,000,000 to the Fund. 4
(3) For fiscal year 2026 and each fiscal year thereafter, the Governor shall 5
include in the annual budget bill OR THE CAPITAL BUDGE T BILL an appropriation of 6
$50,000,000 to the Fund. 7
Article – Human Services 8
5–609. 9
(a) (1) In this section the following words have the meanings indicated. 10
(2) (i) “Personal identifying information” has the meaning stated in § 11
8–301 of the Criminal Law Article. 12
(ii) “Personal identifying information” includes an Electronic 13
Benefits Transfer card number or personal identification number. 14
(3) “Skimming practices” includes: 15
(i) use of a skimming device, including a scanner, skimmer, reader, 16
or other electronic device used to access, read, scan, obtain, memorize, or store, temporarily 17
or permanently, personal identifying information; or 18
(ii) adding malicious code illegally to a website to capture Electronic 19
Benefits Transfer card data or personal identifying information. 20
(4) “Theft” includes: 21
(i) physical theft of an Electronic Benefits Transfer card; 22
(ii) identity fraud, as defined in § 8–301 of the Criminal Law Article; 23
and 24
(iii) theft through skimming practices. 25
(5) “Two–way fraud alert” means the capability of the Department to 26
communicate with households, and of households to communicate with the Department, 27
through text messaging regarding potential fraudulent use or theft of an Electronic 28
Benefits Transfer card. 29
HOUSE BILL 352 61
(B) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , 1
RESTORATION OF BENEF ITS UNDER THIS SECTI ON IS SUBJECT TO THE LIMITATIONS 2
OF THE STATE BUDGET. 3
[(b)] (C) (1) If an investigation by the Department shows a household’s 4
correctly issued benefits were lost due to theft, the Department [automatically] shall 5
restore the benefits without requiring further action from the household. 6
(2) As soon as practicable, but not later than 10 days after a household 7
informs the Department of the loss of benefits due to theft, the Department shall: 8
(i) notify the household in writing of the Department’s decision as 9
to whether to restore benefits, the amount of benefits to be restored, and the right to and 10
method of requesting a hearing on the Department’s decision in accordance with subsection 11
[(c)] (D) of this section; 12
(ii) if the Department determines that the household receives 13
benefits, restore benefits to the household in the amount of benefits that was lost; and 14
(iii) provide the household with a new Electronic Benefits Transfer 15
card. 16
(3) The Department may not: 17
(i) require a household to provide a police report as a condition of 18
restoration of benefits; or 19
(ii) limit the number of months in which a household can receive 20
restoration of benefits lost due to theft. 21
[(c)] (D) (1) If a household disputes the amount of benefits restored or the 22
Department’s determination that no restoration is due, the household may request a 23
hearing with the Department within 90 days after the date of the Department’s 24
determination. 25
(2) If a household requests a hearing under this subsection, the 26
Department shall restore the benefits for which the household claims entitlement while the 27
hearing is pending. 28
(3) If the hearing decision is unfavorable to the household, any benefits 29
improperly restored under paragraph (2) of this subsection may be recovered by the 30
Department by reducing the household’s benefit at a rate that may not exceed the lesser of 31
$10 or 5% of the household’s monthly allotment of benefits. 32
62 HOUSE BILL 352
[(d)] (E) In the procurement process for electronic benefits distribution or 1
administration, the State or State–aided or State–controlled entity shall give preference to 2
a vendor that: 3
(1) holds a form of insurance that can be used to reimburse a beneficiary 4
for identity fraud or theft; and 5
(2) provides identity access protections to protect an eligible beneficiary 6
against identity fraud and theft, which may include multifactor authentication. 7
[(e)] (F) The Department shall coordinate with vendors to take available 8
precautions to reduce the vulnerability of Electronic Benefits Transfer cards to theft by 9
utilizing enhanced technology. 10
[(f)] (G) On or before December 1 each year, the Department, in consultation 11
with local law enforcement agencies in the State, shall report to the General Assembly, in 12
accordance with § 2–1257 of the State Government Article, on: 13
(1) the accessibility and security of Electronic Benefits Transfer cards; 14
(2) actions taken to reduce the fraudulent use of Electronic Benefits 15
Transfer cards; 16
(3) the number of Electronic Benefits Transfer cards reissued due to fraud 17
in the immediately preceding year; 18
(4) the number of households reporting theft of benefits, by jurisdiction and 19
program; 20
(5) the number of households eligible for expedited Supplemental 21
Nutrition Assistance Program benefits that reported loss of benefits due to theft, by 22
jurisdiction and program; 23
(6) the total dollar amount of benefits reported lost due to theft, by 24
jurisdiction and program; 25
(7) the number of determinations of theft made by the Department, by 26
jurisdiction; 27
(8) the number of determinations made by the Department that theft did 28
not occur, by jurisdiction; 29
(9) the number of households reimbursed for benefits lost due to theft and 30
the total dollar amount of benefits restored, by jurisdiction and program; 31
(10) the average and maximum length of time, in days, between the report 32
of theft and the restoration of benefits, by jurisdiction; 33 HOUSE BILL 352 63
(11) the number of hearings requested and the number of households that 1
received a restoration of benefits as an outcome of a hearing, by jurisdiction; and 2
(12) demographic data on households that experienced theft, including race, 3
gender, number of households with children under the age of 18 years, and number of 4
households with a member at least 60 years old. 5
10–1303. 6
(a) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include 7
in the annual budget bill an appropriation of [$2,400,000] $1,200,000 to manage the 8
long–term care and dementia care navigation programs statewide and to fund the programs 9
locally. 10
(b) The funds appropriated under this section shall be distributed proportionally 11
to each area agency based on a formula determined by the Department that considers the 12
number of individuals who will likely need long–term care or dementia care services in each 13
jurisdiction. 14
Article – Labor and Employment 15
8–421. 16
(a) The Special Administrative Expense Fund shall consist of money appropriated 17
in the State budget from: 18
(1) fines, interest, and other penalties collected under this title and paid 19
from the clearing account under § 8–404(c) of this subtitle; 20
(2) money transferred from the Unemployment Insurance Administration 21
Fund under § 8–422 of this subtitle; [and] 22
(3) any voluntary contribution to the Special Administrative Expense 23
Fund; AND 24
(4) ADMINISTRATIVE FEE P AYMENTS DEPOSITED IN TO THE SPECIAL 25
ADMINISTRATIVE EXPENSE FUND IN ACCORDANCE WI TH § 8–605.1 OF THIS TITLE 26
AND ANY ASSOCIATED F INES, PENALTIES, AND INTEREST ESTABLISHED BY 27
REGULATION . 28
(b) (1) Notwithstanding any other provision in this Part III of this subtitle, the 29
Special Administrative Expense Fund may be used as a revolving account to cover costs 30
that are proper under the law for which federal money is requested but not yet received, if 31
the costs are charged against the federal money when received. 32
64 HOUSE BILL 352
(2) Subject to subsection (d) of this section, the Secretary: 1
(i) shall use the Special Administrative Expense Fund for 2
reimbursement of interest on contributions that is collected erroneously; 3
(ii) shall use the Special Administrative Expense Fund to pay for 4
costs of administration that are found to have been improperly charged against federal 5
money credited to the Unemployment Insurance Administration Fund; and 6
(iii) may use the Special Administrative Expense Fund: 7
1. for replacement within a reasonable time of any money 8
that the State receives under § 302 of the Social Security Act and that because of an action 9
or contingency has been lost or has been used for purposes other than or in amounts 10
exceeding those necessary for proper administration of this title; [or] 11
2. for administrative expenses of the Division of 12
Unemployment Insurance and Division of Workforce Development AND ADULT 13
LEARNING, in accordance with subsection (c) of this section; AND 14
3. TO COLLECT AND ADMIN ISTER THE ADMINISTRA TIVE 15
FEE ESTABLISHED UNDE R § 8–605.1 OF THIS TITLE. 16
(c) (1) Subject to subsection (d) of this section, the Secretary may use the 17
Special Administrative Expense Fund for administrative expenses necessary to administer 18
this title. 19
(2) Administrative expenses include: 20
(i) expenses related to the acquisition of office space required for 21
effective administration of this title, subject to approval by the Board of Public Works; 22
(ii) costs for furnishing, maintenance, repair, improvement, and 23
enhancement of office space; 24
(iii) the purchase, leasing, and maintenance of information 25
technology systems, including equipment, programs, and services; 26
(iv) the purchase, leasing, and maintenance of telecommunications 27
systems, services, and equipment including connectivity costs and ongoing usage costs; and 28
(v) other administrative costs that the Secretary determines are 29
necessary to administer solely the provisions of this title. 30
(d) (1) The Special Administrative Expense Fund may not be used in a manner 31
that would result in a loss of federal money that, in the absence of money from the Special 32 HOUSE BILL 352 65
Administrative Expense Fund, would be available to pay for administrative costs of this 1
title. 2
(2) THE SECRETARY SHALL IMPLE MENT COST ALLOCATION PLANS AS 3
NECESSARY UNDER THIS PART III OF THIS SUBTITLE TO COMPLY WITH ALL 4
APPLICABLE STATE AND FEDERAL LAW . 5
8–605.1. 6
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(2) “NEW EMPLOYER ” HAS THE MEANING STAT ED IN § 8–609(A) OF 9
THIS SUBTITLE. 10
(3) “TAXABLE WAGE BASE ” HAS THE MEANING STAT ED IN § 8–601 OF 11
THIS SUBTITLE. 12
(B) (1) (I) BEGINNING JANUARY 1, 2026, EACH EMPLOYING UNIT 13
THAT IS DETERMINED T O BE LIABLE UNDER TH IS SUBTITLE TO PAY C ONTRIBUTIONS 14
SHALL BE SUBJECT TO AN ANNUAL ADMINISTRA TIVE FEE OF 0.15% OF ITS TAXABLE 15
WAGE BASE. 16
(II) THE TIMING AND MANNER OF PAYMENT SHALL BE AS 17
DETERMINED BY THE SECRETARY. 18
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 19
BEGINNING JANUARY 1, 2026, THE CONTRIBUTION RAT E ASSIGNED TO EACH 20
EMPLOYING UNIT UNDER THIS SUBTITLE, EXCLUSIVE OF ANY PEN ALTIES, FINES, OR 21
INTEREST REQUIRED TO BE PAID BY AN EMPLOY ING UNIT UNDER A NY OTHER 22
PROVISION OF THIS TI TLE, SHALL BE ADJUSTED BY SUBTRACTING 0.15% FROM 23
EACH RATE. 24
(II) A NEW EMPLOYER SHALL P AY AT LEAST 1% OF ITS TAXABLE 25
WAGE BASE. 26
(C) THE ADMINISTRATIVE FE E PAYMENTS COLLECTED UNDER THIS 27
SECTION: 28
(1) SHALL BE CONSIDERE D SEPARATE AND DISTI NCT FROM 29
CONTRIBUTIONS ; 30
(2) MAY NOT BE CREDITED TO THE ACCOUNTS OF I NDIVIDUAL 31
EMPLOYING UNITS ; AND 32 66 HOUSE BILL 352
(3) SHALL BE DEPOSITED I NTO THE SPECIAL ADMINISTRATIVE 1
EXPENSE FUND ESTABLISHED UNDE R § 8–419 OF THIS TITLE. 2
(D) THE ADMINISTR ATIVE FEES COLLECTED UNDER THIS SECTION M AY BE 3
USED FOR ADMINISTRAT IVE EXPENSES IN ACCO RDANCE WITH § 8–421 OF THIS 4
TITLE, INCLUDING EXPENSES T O IMPROVE CUSTOMER S ERVICE, CONDUCT DATA 5
ANALYSIS, SUPPORT INFORMATION TECHNOLOGY IMPROVEME NTS, COMBAT FRAUD , 6
AND ACCELERATE REEMPLOYM ENT. 7
(E) THE SECRETARY MAY ADOPT R EGULATIONS NECESSARY TO CARRY OUT 8
THIS SECTION. 9
8–609. 10
(a) (1) In this section the following terms have the meanings indicated. 11
(3) “New employer” means an employing unit that does not qualify for an 12
earned rate under § 8–610 of this subtitle. 13
(b) [A] SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , A new employer shall 14
pay contributions at a rate that does not exceed 2.6% of the taxable wage base, and that is 15
the highest of: 16
(1) 1% of the taxable wage base; 17
(2) the 5–year benefit cost rate of the State as computed under subsection 18
(c) of this section; or 19
(3) the contribution rate under § 8–612 of this subtitle that applies to an 20
employing unit with a benefit ratio of 0.000. 21
8–612. 22
(a) (1) Subject to paragraph (2) of this subsection, on the basis of the earned 23
rating record of an employing unit that qualifies for an earned rate of contribution under § 24
8–610 of this subtitle, the Secretary shall compute to the 4th decimal place a benefit ratio 25
for the employing unit in accordance with subsection (b) or (c) of this section. 26
(2) [The] SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , THE Secretary 27
may not assign an earned rate of contribution that is less than 0.3% or more than 13.5%. 28
8–613. 29
(a) (1) In this section the following terms have the meanings indicated. 30
HOUSE BILL 352 67
(3) “Reorganized employer” means: 1
(i) an employer that alters its legal status, including changing from 2
a sole proprietorship or a partnership to a corporation; or 3
(ii) an employer that otherwise changes its trade name or business 4
identity while remaining under any of the same ownership. 5
(4) “Successor employer” means an employer that acquires, by sale or 6
otherwise, all or part of the assets, business, organization, or trade of another employer. 7
(b) (1) A reorganized employer shall be liable for all contributions, interest, 8
[and] penalties, AND ADMINISTRATIVE F EES owed by the employing unit before the 9
reorganization. 10
(2) [A] SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , A reorganized 11
employer shall continue to pay contributions at the contribution rate of the employing unit 12
before the reorganization from the date of the reorganization through the next December 13
31. 14
(3) Beginning on the January 1 after the reorganization, the rate of 15
contribution of the reorganized employer shall be based on its experience with payrolls and 16
benefit charges, in combination with the experience with payrolls and benefit charges of 17
the employing unit before the reorganization. 18
(d) If a successor employer was an employing unit before acquiring the assets, 19
business, organization, or trade of a predecessor employer that is an employing unit, and 20
has no common ownership, management, or control with the predecessor employer: 21
(1) SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , the successor 22
employer shall continue to pay contributions at the previously assigned rate from the date 23
of the transfer through the next December 31; 24
(2) beginning on the January 1 after the transfer, and for each calendar 25
year thereafter, the rate of contribution of the successor employer shall be based on its 26
experience with payrolls and benefit charges in combination with the proportionate share 27
of payrolls and benefit charges acquired from the predecessor employer; and 28
(3) if two or more successor employers receive the transfer, beginning on 29
the January 1 after the transfer, and for each calendar year thereafter, the rate of 30
contribution of each successor employer shall be based on its experience with payrolls and 31
benefit charges in combination with the proportionate share of payrolls and benefit charges 32
acquired from the predecessor employer. 33
(f) If a predecessor employer does not remain in business after the transfer of all 34
or part of the assets, business, organization, or trade of the predecessor employer: 35
68 HOUSE BILL 352
(1) the successor employer is liable for all contributions, interest, [and] 1
penalties, AND ADMINISTRATIVE F EES owed by the predecessor employer at the time of 2
the transfer; and 3
(2) if two or more successor employers receive the transfer, the successor 4
employers shall be liable in the same proportion as the payroll record of the unit being 5
transferred is to the total business of the predecessor employer. 6
(g) (1) [A] SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , A predecessor 7
employer shall continue to pay contributions at the previously assigned rate through the 8
next December 31 if the predecessor employer: 9
(i) transfers only part of the assets, business, organization, or trade 10
of the predecessor employer; 11
(ii) remains in business; and 12
(iii) has been assigned a contribution rate under this subtitle. 13
(2) [If] SUBJECT TO § 8–605.1(B) OF THIS SUBTITLE , IF a predecessor 14
employer has met each of the requirements to continue to pay contributions at the 15
previously assigned rate through the December 31 after the transfer, beginning on the 16
January 1 after the transfer the rate of contributions of the predecessor employer for each 17
calendar year shall be based on: 18
(i) its experience with payrolls and benefit charges; and 19
(ii) its experience incurred before the transfer less any experience 20
that was transferred to a successor employer. 21
11–606. 22
(b) (1) There is a Maryland New Start Grant Program in the Department. 23
(2) The Department shall administer the Program. 24
(c) The purpose of the Program is to provide grants to organizations to create or 25
support existing entrepreneurship development programs to provide assistance to covered 26
individuals. 27
(f) (1) (I) In [each of fiscal years 2024, 2025, 2026, 2027, and 2028] FISCAL 28
YEARS 2024 AND 2025 YEAR 2024, the Governor shall include in the annual budget bill 29
an appropriation of at least $200,000 for the Program. 30
HOUSE BILL 352 69
(II) IN FISCAL YEARS 2026 2025 THROUGH 2028, THE 1
GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIATION OF 2
AT LEAST $50,000 FOR THE PROGRAM. 3
(2) The Department may not utilize more than 10% of the money 4
appropriated for the Program for administrative costs. 5
11–1302. 6
(a) There is a Construction Education and Innovation Fund. 7
(e) (1) For fiscal year 2018 through fiscal year 2024, the Governor shall 8
include in the annual budget bill an appropriation to the Fund of $250,000 to support the 9
operation of the Center. 10
(2) For fiscal year 2025 through fiscal year 2029, the Governor shall 11
include in the annual budget bill an appropriation to the Fund of [$625,000] $531,250 to 12
support the operation of the Center. 13
(f) The Fund may be used only to support the purposes of the Center. 14
11–1501. 15
(a) In this subtitle the following words have the meanings indicated. 16
(f) “Program” means the Career Pathways for Health Care Workers Program. 17
11–1506. 18
(a) (1) [For each] THROUGH fiscal year 2025 2024, the Governor shall 19
include in the annual budget bill an appropriation of at least $1,000,000 for the Program. 20
(2) FOR FISCAL YEAR 2026 2025 AND EACH FISCAL YEAR 21
THEREAFTER , THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN 22
APPROPRIATION OF AT LEAST $500,000 FOR THE PROGRAM. 23
(b) Appropriations and expenditures made for the purpose of implementing the 24
Program, including the use of any funds received by a person under any component of the 25
Program, are subject to audit by the Office of Legislative Audits as provided in § 2–1220 of 26
the State Government Article. 27
Article – Local Government 28
16–503. 29
70 HOUSE BILL 352
(A) The Governor shall include in the budget bill for [each] fiscal year 2025 a 1
General Fund appropriation for the following teacher retirement supplemental grants to 2
the following counties: 3
(1) Allegany County – $1,632,106; 4
(2) Baltimore City – $10,047,596; 5
(3) Baltimore County – $3,000,000; 6
(4) Caroline County – $685,108; 7
(5) Dorchester County – $308,913; 8
(6) Garrett County – $406,400; 9
(7) Prince George’s County – $9,628,702; 10
(8) Somerset County – $381,999; and 11
(9) Wicomico County – $1,567,837. 12
(B) FOR FISCAL YEAR 2026, THE GOVERNOR SHALL INCLUD E IN THE 13
BUDGET BILL A GENERAL FUND APPROPRIATION FO R THE FOLLOWING TEAC HER 14
RETIREMENT SUPPLEMEN TAL GRANTS TO THE FO LLOWING COUNTIES : 15
(1) ALLEGANY COUNTY – $816,053; 16
(2) BALTIMORE CITY – $5,023,798; 17
(3) BALTIMORE COUNTY – $1,500,000; 18
(4) CAROLINE COUNTY – $342,554; 19
(5) DORCHESTER COUNTY – $154,457; 20
(6) GARRETT COUNTY – $203,200; 21
(7) PRINCE GEORGE’S COUNTY – $4,814,351; 22
(8) SOMERSET COUNTY – $191,000; AND 23
(9) WICOMICO COUNTY – $783,919. 24
Article – Natural Resources 25
HOUSE BILL 352 71
3–103. 1
(a) (1) There is a body politic and corporate known as the “Maryland 2
Environmental Service”. 3
(h) (1) The Service: 4
(i) May create and establish 1 or more project reserve funds in such 5
amounts as the Board considers appropriate, including the following project reserve funds: 6
1. An Eastern Correctional Institution Turbine Project 7
Contingency Fund; 8
2. A Department of Natural Resources Project Contingency 9
Fund; and 10
3. A Reimbursable Project Contingency Fund; and 11
(ii) Subject to paragraph (2) of this subsection, may pay into such 12
funds: 13
1. Any money appropriated and made available by the State 14
for the purposes of such funds; 15
2. Any proceeds from the sale of bonds or notes, to the extent 16
provided in the resolution authorizing the issuance of the bonds or notes; 17
3. Revenues derived from a project of the Service; and 18
4. Any other money that may be received by or otherwise 19
made available to the Service from any other source or sources which the Service has 20
designated for deposit into such funds. 21
(2) Money held in or credited to a project reserve fund established under 22
this subsection shall be used solely to accomplish the purposes of this subtitle, as 23
determined by the Board and, subject to paragraph (3) of this subsection, may be retained 24
by the Service in the appropriate project reserve fund based on the project for which the 25
money was received by the Service. 26
(3) (i) The Service may credit to a project reserve fund established 27
under paragraph (1)(i)1 through 3 of this subsection only money that is reimbursable to the 28
State. 29
(ii) The Service may not retain more than: 30
1. [$1,500,000] $5,000,000 in the Eastern Correctional 31
Institution Turbine Project Contingency Fund; 32 72 HOUSE BILL 352
2. $500,000 in the Department of Natural Resources Project 1
Contingency Fund; or 2
3. [$1,000,000] $3,000,000 in the Reimbursable Project 3
Contingency Fund. 4
(iii) If at the end of a fiscal year the balance in a project reserve fund 5
exceeds the limits stated in subparagraph (ii) of this paragraph, the Service shall revert 6
the excess to the State fund from which the money in the project reserve fund was originally 7
appropriated. 8
(4) Money appropriated or made available to the Service by the State shall 9
be expended in accordance with the provisions of this subtitle. 10
5–903. 11
(a) (1) (i) Of the funds distributed to Program Open Space under § 13–209 12
of the Tax – Property Article, up to $3,000,000 may be transferred by an appropriation in 13
the State budget, or by an amendment to the State budget under Title 7, Subtitle 2 of the 14
State Finance and Procurement Article, to the Maryland Heritage Areas Authority 15
Financing Fund established under Title 13, Subtitle 11 of the Financial Institutions Article 16
to be used for the purposes provided in that subtitle. 17
(ii) Of the amount transferred under subparagraph (i) of this 18
paragraph, up to $300,000 may be distributed to the Maryland Historical Trust within the 19
Department of Planning to be awarded as noncapital historic preservation grants. 20
(2) (i) 1. Of the remaining funds not appropriated under paragraph 21
(1)(i) of this subsection: 22
A. One half of the funds shall be used for recreation and open 23
space purposes by the Department and the Historic St. Mary’s City Commission; and 24
B. 20% of the funds or $21,000,000, whichever is greater, 25
shall be appropriated to the Forest and Park Service in the Department to operate State 26
forests and parks. 27
2. Except as otherwise provided in this section, any funds the 28
General Assembly appropriates to the State under this subsection shall be used only for 29
land acquisition projects. 30
(iii) 1. A portion of the State’s share of funds available under 31
subparagraph (i)1A of this paragraph for this program not to exceed $8,000,000 for each 32
fiscal year may be transferred by an appropriation in the State budget to the Rural Legacy 33
Program under Subtitle 9A of this title. 34
HOUSE BILL 352 73
2. In each fiscal year, up to $2 million of the funds 1
transferred under this subparagraph to the Rural Legacy Program may be used to purchase 2
zero coupon bonds for easements. 3
3. Sums allocated to the Rural Legacy Program may not 4
revert to the General Fund of the State. 5
5–2001. 6
(a) In this section, “Fund” means the Maryland Forestry Education Fund. 7
(b) There is a Maryland Forestry Education Fund. 8
(c) The purpose of the Fund is to expand and enhance: 9
(1) The Maryland Forestry Foundation’s capacity to provide education and 10
resources that support Maryland’s forest landowners; 11
(2) The ability of district forestry boards and the knowledge of local 12
governments in Maryland to achieve: 13
(i) Environmental, economic, and social sustainability of forest 14
health; and 15
(ii) The sustainable management of forest resources; and 16
(3) The ability of businesses to test innovative best management practices 17
in forestry. 18
(k) For fiscal [years] YEAR 2025 [and 2026], the Governor shall include in the 19
annual budget bill an appropriation of $250,000 to the Fund. 20
8–2A–02. 21
(a) There is a Chesapeake and Atlantic Coastal Bays 2010 Trust Fund. 22
(b) The purpose of the Trust Fund is to provide financial assistance necessary to 23
advance Maryland’s progress in meeting the goals established in the 2014 Chesapeake Bay 24
Watershed Agreement for the restoration of the Chesapeake Bay and its tributaries, 25
including the Patuxent River, and to restore the health of the Atlantic Coastal Bays and 26
their tributaries, by focusing limited financial resources on nonpoint source pollution 27
control projects in all regions of the State. 28
(f) (1) The Trust Fund may be used only for the implementation of nonpoint 29
source pollution control projects to: 30
74 HOUSE BILL 352
(i) Support State and local watershed implementation plans by 1
targeting limited financial resources on the most effective nonpoint source pollution control 2
projects; and 3
(ii) Improve the health of the Atlantic Coastal Bays and their 4
tributaries. 5
(2) It is the intent of the General Assembly that, when possible, money in 6
the Trust Fund shall be granted to local governments and other political subdivisions for 7
agricultural, forestry, stream and wetland restoration, and urban and suburban 8
stormwater nonpoint source pollution control projects, including up to 25% in matching 9
funds to local governments and other political subdivisions that have enacted a stormwater 10
remediation fee under § 4–202.1 of the Environment Article. 11
(3) (i) In each fiscal year from 2023 through 2031, inclusive, $1,250,000 12
from the Trust Fund shall be used to fund: 13
1. The 5 Million Tree Program Coordinator position in the 14
Department of the Environment; and 15
2. Subject to subparagraph (ii) of this paragraph, 13 16
contractor positions in the Forest Service of the Department to provide technical assistance, 17
planning, and coordination related to tree plantings, tree buffer management, and forest 18
management, including invasive vine removal, on public, private, and agricultural lands 19
and in “underserved areas” as defined in § 8–1911 of this article. 20
(ii) The Department shall make reasonable efforts to ensure that 21
contractors hired under subparagraph (i)2 of this paragraph reflect the geographic and 22
demographic diversity of the State. 23
(4) (i) In each fiscal year from 2024 through 2031, inclusive, $2,500,000 24
from the Trust Fund shall be used, subject to the requirements of subparagraph (ii) of this 25
paragraph, for tree plantings on public and private land. 26
(ii) The money appropriated under this paragraph: 27
1. May be distributed in accordance with § 8–2A–04(c)(2) of 28
this subtitle; 29
2. May be used to cover the costs of: 30
A. Site preparation, labor, and materials for tree–planting 31
projects; 32
B. Maintaining trees following a tree–planting project; and 33
HOUSE BILL 352 75
C. Landowner incentive payments or signing bonuses of up 1
to $1,000 per acre of trees planted; 2
3. May not be used to plant trees intended for timber harvest; 3
and 4
4. May be used only for tree plantings on private land if the 5
landowner enters into a binding legal agreement to maintain the planted area in tree cover 6
for at least 15 years. 7
(iii) Money appropriated under this paragraph is supplemental to 8
and may not take the place of funding that otherwise would be appropriated for tree 9
plantings on public and private land. 10
(5) In each fiscal year from 2026 through 2030, inclusive, up to $100,000 11
from the Trust Fund shall be used to fund the operations grants under § 8–2B–02(g)(3) of 12
this title at a rate of $20,000 per project sponsor each fiscal year. 13
(6) NOTWITHSTANDING ANY O THER PROVISION OF LA W, THE 14
GOVERNOR MAY INCLUDE IN THE ANNUAL BUDGET BILL AN APPROPRIATIO N OF UP 15
TO $10,500,000 FROM THE TRUST FUND TO SUPPORT OPERA TING EXPENSES OF THE 16
DEPARTMENT . 17
8–709. 18
(a) The Department shall include in its annual budget request an itemized list of 19
requests for the use of any available money from the Waterway Improvement Fund for the 20
projects under § 8–707 of this subtitle. The Department’s list shall include a brief 21
description of each project, an estimate of its cost, and the benefits to be derived from it. 22
The list shall designate which projects are financed solely by the Waterway Improvement 23
Fund, which are matching fund projects, and which are interest–free loan projects. 24
(b) Notwithstanding the provisions of subsection (a) of this section, in any fiscal 25
year the Department may expend from the Waterway Improvement Fund without 26
legislative approval a total sum of not more than $225,000. Of this amount, a sum of not 27
more than $125,000 may be expended for small projects under § 8–707(a)(3) and (4) of this 28
subtitle, subject to the limitation that a single project of this kind may not exceed $5,000 in 29
cost to the Waterway Improvement Fund, and a sum of not more than $100,000 may be 30
expended for boating safety and education. 31
(c) Notwithstanding the provisions of subsection (a) of this section, the 32
Department may propose an appropriation from the Waterway Improvement Fund to 33
support marine operations of the Natural Resources Police not exceeding: 34
(1) $1,700,000 in the Department’s fiscal year 2006 budget; [and] 35
76 HOUSE BILL 352
(2) $2,000,000 in the Department’s fiscal year 2007 [budget, and every year 1
thereafter] THROUGH FISCAL YEAR 2025 BUDGETS; AND 2
(3) $2,100,000 IN THE DEPARTMENT ’S FISCAL YEAR 2026 BUDGET, 3
AND EVERY YEAR THEREAFTER . 4
Article – Public Safety 5
4–1011. 6
(a) In this section, “local law enforcement agency” means: 7
(1) a police department of a county or municipal corporation in the State; 8
or 9
(2) the office of the sheriff that provides a law enforcement function in a 10
county or municipal corporation in the State. 11
(b) (1) For fiscal [years 2024 through 2026, each year] 2024, the Governor 12
shall include in the annual budget bill an appropriation of $2,000,000 for local law 13
enforcement agencies to be used as grants for warrant apprehension efforts. 14
(2) FOR FISCAL YEARS 2025 AND 2026, THE GOVERNOR SHALL 15
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $1,000,000 FOR 16
LOCAL LAW ENFORCEMEN T AGENCIES TO BE USE D AS GRANTS TO WARRA NT 17
APPREHENSION EFFORTS . 18
(c) (1) The Governor’s Office of Crime Prevention and Policy shall administer 19
the grant funds in accordance with § 4–1008 of this subtitle. 20
(2) Local law enforcement agencies may use the grant funds for the 21
following purposes: 22
(i) to reduce warrants in the agency’s jurisdiction; 23
(ii) to increase coordination and cooperation between local law 24
enforcement and State and federal agencies regarding outstanding warrants; and 25
(iii) to reduce the number of outstanding warrants related to violent 26
crimes. 27
Article – Real Property 28
8–1006. 29
HOUSE BILL 352 77
For each of fiscal years 2026 through 2028, the Governor [shall] MAY include in the 1
annual budget bill an appropriation of: 2
(1) $100,000 to the designated organization for Montgomery County to be 3
used for the Pilot Program; and 4
(2) $100,000 to the designated organization for Prince George’s County to 5
be used for the Pilot Program. 6
Article – State Finance and Procurement 7
3.5–309. 8
(a) There is an Information Technology Investment Fund. 9
(b) The purpose of the Fund is to support major information technology 10
development projects and expedited projects. 11
(j) Notwithstanding subsection (b) of this section and except for the cost incurred 12
in administering the Fund, each fiscal year up to $1,000,000 of this Fund may be used for: 13
(1) educationally related information technology projects; 14
(2) application service provider initiatives as provided for in Title 9, 15
Subtitle 22 of the State Government Article; or 16
(3) information technology projects, including: 17
(i) pilots; and 18
(ii) prototypes. 19
(k) A unit of State government or local government may submit a request to the 20
Secretary to support the cost of an information technology project with money under 21
subsection (j) of this section. 22
[(l) (1) Each fiscal year, at least 20% of the amount included in the Governor’s 23
allowance and appropriated to the Fund shall be set aside to be used for expedited projects. 24
(2) Any amount set aside under paragraph (1) of this subsection that is not 25
used in the fiscal year that it is set aside shall remain set aside in the Fund and available 26
to be used for future expedited projects.] 27
[(m)] (L) (1) Notwithstanding subsection (b) of this section and in accordance 28
with paragraph (2) of this subsection, money paid into the Fund under subsection (e)(2) of 29
this section shall be used to support: 30
78 HOUSE BILL 352
(i) the State telecommunication and computer network established 1
under § 3.5–404 of this title, including program development for these activities; and 2
(ii) the Statewide Public Safety Interoperability Radio System, also 3
known as Maryland First (first responder interoperable radio system team), under Title 1, 4
Subtitle 5 of the Public Safety Article. 5
(2) The Secretary may determine the portion of the money paid into the 6
Fund that shall be allocated to each program described in paragraph (1) of this subsection. 7
[(n)] (M) (1) On or before November 1 of each year, the Secretary shall report 8
to the Governor and the Secretary of Budget and Management and, in accordance with § 9
2–1257 of the State Government Article, to the Senate Budget and Taxation Committee, 10
the Senate Committee on Education, Energy, and the Environment, the House 11
Appropriations Committee, the House Health and Government Operations Committee, and 12
the Joint Committee on Cybersecurity, Information Technology, and Biotechnology. 13
(2) The report shall include: 14
(i) the financial status of the Fund and a summary of its operations 15
for the preceding fiscal year; 16
(ii) an accounting for the preceding fiscal year of all money from each 17
of the revenue sources specified in subsection (e) of this section, including any expenditures 18
made from the Fund; and 19
(iii) for each project receiving money from the Fund in the preceding 20
fiscal year and for each major information technology development project or expedited 21
project receiving funding from any source other than the Fund in the preceding fiscal year: 22
1. the status of the project and project funding decisions; 23
2. a comparison of estimated and actual costs of the project; 24
3. any known or anticipated changes in scope or costs of the 25
project; 26
4. an evaluation of whether the project is using best 27
practices; and 28
5. a summary of any monitoring and oversight of the project 29
from outside the agency in which the project is being developed, including a description of 30
any problems identified by any external review and any corrective actions taken. 31
[(o)] (N) On or before January 15 of each year, for each major information 32
technology development project or expedited project currently in development or for which 33
operations and maintenance funding is being provided in accordance with subsection (i)(3) 34 HOUSE BILL 352 79
of this section, subject to § 2–1257 of the State Government Article, the Secretary shall 1
provide a summary report to the Department of Legislative Services with the most 2
up–to–date project information including: 3
(1) project funding decisions and project status; 4
(2) any schedule, cost, and scope changes since the last annual report; 5
(3) a risk assessment including any problems identified by any internal or 6
external review and any corrective actions taken; and 7
(4) any change in the monitoring or oversight status. 8
[(p)] (O) (1) The Secretary may adopt regulations necessary to carry out this 9
section. 10
(2) The Secretary shall adopt regulations necessary to establish a process 11
for units of State government to request and receive funding for an expedited project 12
aligned with the State Modernization Plan that shall: 13
(i) allow units of State government to apply for project funding 14
biannually; 15
(ii) be consistent with the goals and preferences established under 16
Title 14 of this article and encourage small and minority business enterprise vendors; and 17
(iii) provide measures that ensure compliance with this subtitle and 18
the Department’s regulations by both vendors and units of State government. 19
6–104. 20
(e) (1) Beginning with the revenue estimate for fiscal year 2020, the Bureau 21
shall calculate the share of General Fund revenues represented by nonwithholding income 22
tax revenues in accordance with this subsection. 23
(2) (i) For each fiscal year, the Bureau shall calculate the 10–year 24
average share of General Fund revenues represented by nonwithholding income tax 25
revenues. 26
(ii) 1. For each fiscal year, the 10–year average shall use the 10 27
most recently completed fiscal years for which data are available when the estimate is 28
prepared in the September before the beginning of the fiscal year. 29
2. The same 10–year average shall be used in all subsequent 30
revisions to the revenue estimate for that fiscal year. 31
80 HOUSE BILL 352
(3) (i) Subject to subparagraph (ii) of this paragraph, for each fiscal 1
year, if the Bureau’s estimate of the share of General Fund revenues from nonwithholding 2
income tax revenues is above the 10–year average share, the Bureau shall adjust the 3
revenue estimate by reducing General Fund revenues from nonwithholding income tax 4
revenues by an amount sufficient to align the estimated share of General Fund revenues 5
from nonwithholding income tax revenues with the 10–year average share of General Fund 6
revenues from nonwithholding income taxes. 7
(ii) The adjustment made under subparagraph (i) of this paragraph 8
may not exceed the following percentage of total General Fund revenues or dollar value in 9
a specified fiscal year: 10
1. 0.225% for fiscal year 2020; 11
2. $0 for fiscal year 2021; 12
3. $80,000,000 for fiscal year 2022; 13
4. $100,000,000 for fiscal year 2023; 14
5. $0 for fiscal [year 2024] YEARS 2024 THROUGH 2029; 15
AND 16
6. [$0 for fiscal year 2025; and 17
7.] 2% for fiscal year [2026] 2030 and each fiscal year 18
thereafter. 19
(iii) The capped estimate calculated under this paragraph shall be 20
incorporated in the revenue estimate the Bureau shall report to the Board in the report 21
required under subsection (b)(2) of this section. 22
7–114.2. 23
(A) When EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , 24
WHEN a proposed budget includes expenditure reductions to be applied across multiple 25
Executive Branch agencies, the budget bill [shall] MAY specify how the savings will be 26
achieved and with the exception of position abolitions and items requiring collective 27
bargaining [shall] MAY include a separate schedule for each reduction allocating the 28
reduction for each agency in a level of detail not less than the 3–digit R*Stars financial 29
agency code and by each fund type. 30
(B) FOR FISCAL YEAR 2026 ONLY, WHEN A PROPOSED BUDG ET INCLUDES 31
EXPENDITURE REDUCTIO NS TO BE APPLIED ACR OSS MULTIPLE EXECUTIVE 32
BRANCH AGENCIES , THE BUDGET BILL MAY SPECIFY HOW THE SAVI NGS WILL BE 33
ACHIEVED AND WITH THE EXCEPTION OF POS ITION ABOLITIONS AND ITEMS 34 HOUSE BILL 352 81
REQUIRING COLLECTIVE BARGAINING MAY INCLU DE A SEPARATE SCHEDU LE FOR 1
EACH REDUCTION ALLOC ATING THE REDUCTION FOR EACH AGENCY IN A LEVEL OF 2
DETAIL NOT LESS THAN THE 3–DIGIT R*STARS FINANCIAL AGENC Y CODE AND BY 3
EACH FUND TYPE . 4
7–311. 5
(a) (1) In this section the following words have the meanings indicated. 6
(2) “Account” means the Revenue Stabilization Account. 7
(3) “Estimated General Fund revenues” means the estimated General 8
Fund revenues for a fiscal year stated in the report of the Board of Revenue Estimates 9
submitted to the Governor under § 6–106 of this article in December preceding the fiscal 10
year. 11
(4) “Unappropriated General Fund surplus” does not include the amount 12
of nonwithholding income tax revenues that exceed the capped estimate determined under 13
§ 6–104(e) of this article. 14
(b) (1) The Revenue Stabilization Account is established to retain State 15
revenues for future needs and reduce the need for future tax increases by moderating 16
revenue growth. 17
(2) It is the goal of the State that 10% of estimated General Fund revenues 18
in each fiscal year be retained in the Account. 19
(e) (1) Except as provided in subsection (f) of this section, for each fiscal year, 20
EXCEPT FISCAL YEAR 2026: 21
(i) if the Account balance is below 3% of the estimated General Fund 22
revenues for that fiscal year, the Governor shall include in the budget bill an appropriation 23
to the Account equal to at least $100,000,000; and 24
(ii) if the Account balance is at least 3% but less than 7.5% of the 25
estimated General Fund revenues for that fiscal year, the Governor shall include in the 26
budget bill an appropriation to the Account equal to at least the lesser of $50,000,000 or 27
whatever amount is required for the Account balance to exceed 7.5% of the estimated 28
General Fund revenues for that fiscal year. 29
(2) At the end of fiscal year 2020 and each fiscal year thereafter, if the 30
amount of nonwithholding income tax revenues exceeds the capped estimate determined 31
under § 6–104(e) of this article, the State Comptroller shall distribute funds as provided in 32
§ 7–329(c) and (d) of this subtitle. 33
82 HOUSE BILL 352
(f) (1) The appropriations required by subsection (e)(1) of this section are not 1
required when the Account balance exceeds 7.5% of the estimated General Fund revenues. 2
(2) The distributions required by subsection (e)(2) of this section are not 3
required when the Account balance exceeds 10% of the estimated General Fund revenues 4
for that fiscal year. 5
(j) (1) Except as provided in paragraph (2) of this subsection, for fiscal [year 6
2007 and for each subsequent fiscal year] YEARS 2007 THROUGH 2023, the Governor 7
shall include in the budget bill an appropriation: 8
(i) for fiscal year 2017, to the accumulation funds of the State 9
Retirement and Pension System an amount, up to a maximum of $50,000,000, that is equal 10
to one–half of the amount by which the unappropriated General Fund surplus as of June 11
30 of the second preceding fiscal year exceeds $10,000,000; 12
(ii) for fiscal year 2020: 13
1. to the accumulation funds of the State Retirement and 14
Pension System an amount, up to a maximum of $50,000,000, that is equal to one–half of 15
the amount by which the unappropriated General Fund surplus as of June 30 of the second 16
preceding fiscal year exceeds $10,000,000; and 17
2. to the Account equal to 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, less the amount of the appropriation under item 1 of this item; 20
(iii) for fiscal year 2021, to the Account in the amount of 21
$291,439,149; 22
(iv) except as provided in item (v) of this paragraph, for fiscal year 23
2022 and each fiscal year thereafter: 24
1. to the accumulation funds of the State Retirement and 25
Pension System an amount, up to a maximum of $25,000,000, that is equal to one–quarter 26
of the amount by which the unappropriated General Fund surplus as of June 30 of the 27
second preceding fiscal year exceeds $10,000,000; 28
2. to the Postretirement Health Benefits Trust Fund 29
established under § 34–101 of the State Personnel and Pensions Article an amount, up to 30
a maximum of $25,000,000, that is equal to one–quarter of the amount by which the 31
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 32
exceeds $10,000,000; and 33
3. to the Account equal to the amount by which the 34
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 35 HOUSE BILL 352 83
exceeds $10,000,000, less the amount of the appropriations under items 1 and 2 of this item; 1
and 2
(v) for fiscal year 2024: 3
1. to the Maryland Equity Investment Fund established 4
under § 10–487 of the Economic Development Article an amount, up to $10,000,000, that 5
is equal to 10% of the amount by which the unappropriated General Fund surplus as of 6
June 30 of the second preceding fiscal year exceeds $10,000,000; 7
2. to the accumulation funds of the State Retirement and 8
Pension System an amount, up to a maximum of $15,000,000, that is equal to 15% of the 9
amount by which the unappropriated General Fund surplus as of June 30 of the second 10
preceding fiscal year exceeds $10,000,000; and 11
3. to the Postretirement Health Benefits Trust Fund 12
established under § 34–101 of the State Personnel and Pensions Article an amount, up to 13
a maximum of $25,000,000, that is equal to 25% of the amount by which the unappropriated 14
General Fund surplus as of June 30 of the second preceding fiscal year exceeds $10,000,000. 15
(2) The appropriation required under this subsection for any fiscal year 16
may be reduced by the amount of any appropriation to the Account required to be included 17
for that fiscal year under subsection (e) of this section. 18
7–317. 19
(a) There is a Cigarette Restitution Fund. 20
(g) (1) Amounts may only be expended from the Fund through appropriations 21
in the State budget bill as provided in this subsection. 22
(2) The Governor shall include in the annual budget bill appropriations 23
from the Fund equivalent to the lesser of $100,000,000 or 90% of the funds estimated to be 24
available to the Fund in the fiscal year for which the appropriations are made. 25
(3) For each fiscal year for which appropriations are made, at least 50% of 26
the appropriations shall be made for those purposes enumerated in subsection (f)(1)(i), (ii), 27
and (v)1 through 9 of this section subject to the requirement of subsection (e)(2) of this 28
section. 29
(4) (I) THIS PARAGRAPH DOES N OT APPLY IN FISCAL Y EAR 2026. 30
(II) For each fiscal year for which appropriations are made, at least 31
30% of the appropriations shall be made for the purposes of the Maryland Medical 32
Assistance Program. 33
84 HOUSE BILL 352
(5) For each fiscal year for which appropriations are made, 0.15% of the 1
Fund shall be appropriated for the purposes of enforcement of Title 16, Subtitle 5 of the 2
Business Regulation Article. 3
(6) For each of fiscal years 2025 through 2029, the Governor shall include 4
in the annual budget bill an appropriation of $8,000,000 to the Maryland Community 5
Health Resources Commission Fund. 6
(7) Any additional appropriations, not subject to paragraph (3), paragraph 7
(4), or paragraph (5) of this subsection, may be made for any lawful purpose. 8
(h) (1) The Fund shall include a separate account consisting of payments 9
received by the State as a result of litigation by participating manufacturers related to the 10
State’s diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article. 11
(2) (I) [Distributions] EXCEPT AS PROVIDED IN SUBPARAGRAPH 12
(II) OF THIS PARAGRAPH , DISTRIBUTIONS from the separate account may be used only 13
to supplant the General Fund appropriation to the historically black colleges and 14
universities required under § 15–126 of the Education Article. 15
(II) FOR FISCAL YEAR 2026 ONLY, DISTRIBUTIONS FROM T HE 16
SEPARATE ACCOUNT MAY BE USED TO SUPPORT MEDICAID EXPENSES . 17
7–325. 18
(a) (1) In this section the following words have the meanings indicated. 19
(2) “Council” means the Maryland State Arts Council. 20
(3) “General fund growth adjustment” means the percentage by which the 21
projected total General Fund revenues for the upcoming fiscal year exceed the revised 22
estimate of total General Fund revenues for the current fiscal year, as contained in the 23
report of estimated State revenues submitted by the Board of Revenue Estimates to the 24
Governor under § 6–106(b) of this article. 25
(b) (1) For fiscal years 2013 through 2024, the Governor shall include in the 26
annual budget bill a General Fund appropriation for the Council in an amount not less than 27
the amount of the General Fund appropriation for the Council for the immediately 28
preceding fiscal year increased by the general fund growth adjustment. 29
(2) For fiscal year 2025 [and each fiscal year thereafter], the Governor 30
shall include in the annual budget bill a General Fund appropriation for the Council in an 31
amount not less than the result of the following calculation: 32
(i) any funds distributed to the Council in the immediately 33
preceding fiscal year in accordance with § 2–202 of the Tax – General Article increased by 34
the general fund growth adjustment; plus 35 HOUSE BILL 352 85
(ii) the amount of the General Fund appropriation for the Council 1
for the immediately preceding fiscal year increased by the general fund growth adjustment; 2
minus 3
(iii) the amount of funds distributed to the Council in the 4
immediately preceding fiscal year in accordance with § 2–202 of the Tax – General Article. 5
(c) The Legislative Auditor has the authority to conduct a review or audit of any 6
recipient of a grant from the Council. 7
7–328. 8
(a) There is a Mortgage Loan Servicing Practices Settlement Fund. 9
(f) (1) The Mortgage Loan Servicing Practices Settlement Fund shall be used 10
for housing and foreclosure–relief purposes and for related investigation and enforcement 11
activities, including: 12
(i) the provision of housing counseling; 13
(ii) legal assistance related to foreclosure, EVICTIONS, and housing 14
activities; 15
(iii) criminal or civil investigations of fraud related to housing and 16
the securitization of mortgage loans; 17
(iv) relevant enforcement activities; 18
(v) foreclosure prevention, remediation, and restitution; 19
(vi) programs to address community blight; 20
(vii) programs reasonably targeted to benefit persons harmed by 21
mortgage fraud; and 22
(viii) any other public purpose reasonably related to housing and 23
foreclosure relief. 24
(2) The provisions of this subsection may not be construed to affect the 25
Governor’s powers with respect to a request for an appropriation in the annual budget bill. 26
7–331. 27
(a) In this section, “Fund” means the Opioid Restitution Fund. 28
(b) There is an Opioid Restitution Fund. 29 86 HOUSE BILL 352
(i) (1) (I) THIS PARAGRAPH DOES N OT APPLY IN FISCAL Y EARS 2025 1
AND 2026. 2
(II) Money expended from the Fund for the programs and services 3
described under subsection (f) of this section is supplemental to and is not intended to take 4
the place of funding that otherwise would be appropriated for the programs and services. 5
(2) Except as specified in subsection (f) of this section, money expended 6
from the Fund may not be used for administrative expenses. 7
10–501. 8
(a) (1) On receipt of an order by an administrative law judge granting a 9
petition under subsection (b) of this section, SUBJECT TO PARAGRAPH (5) OF THIS 10
SUBSECTION, the Board of Public Works shall compensate an individual erroneously 11
convicted, sentenced, and confined under State law for a crime the individual did not 12
commit in an amount equal to the product of the total number of days that the individual 13
was wrongfully confined after the erroneous conviction multiplied by a daily rate of the 14
State’s most recent annual median household income as published in the American 15
Community Survey of the U.S. Census Bureau in the year the order of eligibility is issued 16
under subsection (b) of this section and divided by 365 days to the nearest whole cent. 17
(2) In addition to the compensation awarded under paragraph (1) of this 18
subsection, the administrative law judge issuing an order under subsection (b) of this 19
section may direct the appropriate State agency or service provider to provide to the 20
individual free of charge any of the following benefits: 21
(i) a State identification card and any other document necessary for 22
the individual’s health or welfare on the individual’s release from confinement; 23
(ii) housing accommodations for a period not exceeding 5 years after 24
the date the order of eligibility is issued under subsection (b) of this section; 25
(iii) education and training relevant to life skills, job and vocational 26
training, or financial literacy for a period of time until the individual elects to no longer 27
receive the education and training; 28
(iv) health care and dental care for at least 5 years after the date the 29
order of eligibility is issued under subsection (b) of this section; 30
(v) access to enrollment at and payment of tuition and fees for 31
attending a public senior higher education institution, a regional higher education center, 32
or the Baltimore City Community College for a period of enrollment not exceeding 8 years; 33
and 34
HOUSE BILL 352 87
(vi) reimbursement for court fines, fees, and restitution paid by the 1
individual for the crime for which the individual was erroneously convicted, sentenced, and 2
confined. 3
(3) (i) If an individual previously received a monetary award from a 4
civil suit or entered into a settlement agreement with the State or a political subdivision of 5
the State for an erroneous conviction, sentence, or confinement, the amount owed to the 6
individual under this subsection shall be reduced by the amount of the monetary award or 7
settlement that was paid to the individual less any amount paid for attorney’s fees and 8
costs for litigating the award or settlement. 9
(ii) 1. If, after receiving compensation under this subsection, an 10
individual receives a monetary award from a civil suit or enters into a settlement 11
agreement with the State or a political subdivision of the State for an erroneous conviction, 12
sentence, or confinement, the individual shall reimburse the State the amount of money 13
paid under this section less any amount paid for attorney’s fees and costs for litigating the 14
award or settlement. 15
2. Reimbursement required under subsubparagraph 1 of this 16
subparagraph may not exceed the amount of the monetary award the individual received 17
in the civil suit or settlement agreement. 18
3. The State may obtain a lien against the monetary award 19
from a civil suit or settlement agreement to satisfy an obligation under subsubparagraph 1 20
of this subparagraph. 21
(4) If an individual eligible for compensation and benefits under this 22
subsection is deceased, the individual’s estate has standing to be compensated under this 23
subsection. 24
(5) BEGINNING IN FISCAL Y EAR 2026, THE COUNTY OR BALTIMORE 25
CITY GOVERNMENT IN TH E COUNTY OR CITY IN WHICH THE CONVICTION OF AN 26
INDIVIDUAL OCCURRED SHALL PAY TO THE STATE 50% OF THE AMOUNT OF 27
COMPENSATION AWARDED TO THE INDIVIDUAL UNDER PARAGRAPH (1) OF THIS 28
SUBSECTION. 29
(b) (1) An administrative law judge shall issue an order that an individual is 30
eligible for compensation and benefits from the State under subsection (a) of this section if: 31
(i) the individual has received from the Governor a full pardon 32
stating that the individual’s conviction has been shown conclusively to be in error; or 33
(ii) subject to paragraph (2) of this subsection, the administrative 34
law judge finds that the individual has proven by clear and convincing evidence that: 35
1. the individual was convicted, sentenced, and subsequently 36
confined for a felony or conspiracy to commit a felony; 37 88 HOUSE BILL 352
2. the judgment of conviction for the felony or conspiracy to 1
commit a felony was reversed or vacated and: 2
A. the order reversing or vacating the judgment of conviction 3
did not allow for retrial; 4
B. the charges against the individual were dismissed; or 5
C. on retrial, the individual was found not guilty; 6
3. the individual did not commit the felony or conspiracy to 7
commit a felony for which they were convicted, sentenced, and subsequently confined and 8
was not an accessory or accomplice to the felony or conspiracy to commit a felony; and 9
4. subject to paragraph (2)(ii) of this subsection, the 10
individual did not commit or suborn perjury, fabricate evidence, or by the individual’s own 11
conduct cause or bring about the conviction. 12
(d) (1) If an administrative law judge orders that an individual is eligible for 13
compensation and benefits under this section, the order shall include: 14
(i) the monetary award owed to the individual under subsection 15
(a)(1) of this section; 16
(ii) reasonable attorney’s fees and expenses associated with the 17
action brought under this section; 18
(iii) benefits to be awarded under subsection (a)(2) of this section; and 19
(iv) if the administrative law judge determines that it is in the 20
interests of the individual, a recommendation for an expedited payment schedule. 21
(e) The Board of Public Works shall pay the compensation ordered under 22
subsection (d) of this section in: 23
(1) one initial payment equal to the annual amount of the State’s most 24
recent median household income to be paid within 60 days after receiving the order; and 25
(2) (i) after the initial payment under item (1) of this subsection, 26
installments paid over a period not to exceed 6 fiscal years; or 27
(ii) in accordance with an expedited payment schedule recommended 28
under subsection (d)(1)(iv) of this section. 29
Article – State Government 30
HOUSE BILL 352 89
9–120. 1
(a) The Comptroller shall distribute, or cause to be distributed, the State Lottery 2
Fund to pay: 3
(1) on a pro rata basis for the daily and nondaily State lottery games, the 4
expenses of administering and operating the State lottery, as authorized under this subtitle 5
and the State budget; and 6
(2) then, except as provided in § 10–113.1 of the Family Law Article, § 7
11–618 of the Criminal Procedure Article, and § 3–307 of the State Finance and 8
Procurement Article, the holder of each winning ticket or share. 9
(b) (1) By the end of the month following collection, the Comptroller shall 10
deposit, cause to be deposited, or pay: 11
(i) 1. after June 30, 2023, but not later than June 30, 2026, into 12
the Maryland Stadium Facilities Fund established under § 7–312 of the State Finance and 13
Procurement Article from the money that remains in the State Lottery Fund, after the 14
distribution under subsection (a) of this section, an amount not to exceed $14,200,000 in 15
each fiscal year; 16
2. after June 30, 2023, but not later than June 30, 2026, from 17
the money that remains in the State Lottery Fund after the distribution under subsection 18
(a) of this section, an amount for each fiscal year not to exceed: 19
A. $34,900,000 into the Camden Yards Fo otball Sports 20
Facility Supplemental Financing Fund established under § 10–652.1 of the Economic 21
Development Article; and 22
B. $40,900,000 into the Camden Yards Baseball Sports 23
Facility Supplemental Financing Fund established under § 10–652.2 of the Economic 24
Development Article; 25
3. after June 30, 2026, but not later than June 30, 2039, into 26
the Maryland Stadium Facilities Fund established under § 7–312 of the State Finance and 27
Procurement Article from the money that remains in the State Lottery Fund, after the 28
distribution under subsection (a) of this section, an amount not to exceed $3,360,000 in each 29
fiscal year; 30
4. after June 30, 2026, but not later than June 30, 2039, from 31
the money that remains in the State Lottery Fund after the distribution under subsection 32
(a) of this section, an amount for each fiscal year not to exceed: 33
A. $45,000,000 into the Camden Yards Football Sports 34
Facility Supplemental Financing Fund established under § 10–652.1 of the Economic 35
Development Article; and 36 90 HOUSE BILL 352
B. $41,640,000 into the Camden Yards Baseball Sports 1
Facility Supplemental Financing Fund established under § 10–652.2 of the Economic 2
Development Article; and 3
5. after June 30, 2039, from the money that remains in the 4
State Lottery Fund after the distribution under subsection (a) of this section, an amount 5
for each fiscal year not to exceed: 6
A. $45,000,000 into the Camden Yards Football Sports 7
Facility Supplemental Financing Fund established under § 10–652.1 of the Economic 8
Development Article; and 9
B. $45,000,000 into the Camden Yards Baseball Sports 10
Facility Supplemental Financing Fund established under § 10–652.2 of the Economic 11
Development Article; 12
(ii) after June 30, 2014, into the Maryland Veterans Trust Fund 10% 13
of the money that remains in the State Lottery Fund from the proceeds of sales of tickets 14
from instant ticket lottery machines by veterans’ organizations under § 9–112(d) of this 15
subtitle, after the distribution under subsection (a) of this section; 16
(iii) after June 30, 2014, into the Baltimore City Public School 17
Construction Financing Fund established under § 10–656 of the Economic Development 18
Article the money that remains in the State Lottery Fund from the proceeds of all lotteries 19
after the distributions under subsection (a) of this section and items (i) and (ii) of this 20
paragraph, an amount equal to $20,000,000 in each fiscal year that bonds are outstanding 21
and unpaid, to be paid in two installments with at least $10,000,000 paid no later than 22
December 1 of each fiscal year; 23
(iv) after June 30, 2021, into the Racing and Community 24
Development Financing Fund established under § 10–657.2 of the Economic Development 25
Article from the money that remains in the State Lottery Fund, after the distribution under 26
subsection (a) of this section, an amount equal to $17,000,000 in each fiscal year until the 27
bonds issued for a racing facility have matured; 28
(v) after June 30, 2020, into the Michael Erin Busch Sports Fund 29
established under § 10–612.2 of the Economic Development Article from the money that 30
remains in the State Lottery Fund from the proceeds of all lotteries after the distributions 31
under subsection (a) of this section and items (i) through (iv) of this paragraph, an amount 32
equal to $1,000,000 in each fiscal year; 33
(vi) after June 30, 2021, a grant to the Maryland Humanities Council 34
for Maryland History Day and other programming from the money that remains in the 35
State Lottery Fund after the distributions under subsection (a) of this section and items (i) 36
through (v) of this paragraph, an amount equal to $150,000 in each fiscal year; 37
HOUSE BILL 352 91
(vii) after June 30, 2021, to Anne Arundel County or Baltimore City 1
each fiscal year the amount required to be distributed under § 9–1A–31(a)(7)(ii) of this title 2
to be used as required under § 9–1A–31 of this title; 3
(viii) after June 30, 2022, into the Maggie McIntosh School Arts Fund 4
established under § 5–243 of the Education Article from the money that remains in the 5
State Lottery Fund from the proceeds of all other lotteries after the distributions under 6
subsection (a) of this section and items (i) through (vii) of this paragraph, an amount equal 7
to $250,000 in each fiscal year; 8
(ix) after June 1, 2022, to the Sports Entertainment Facilities 9
Financing Fund established under § 10–657.5 of the Economic Development Article from 10
the money that remains in the State Lottery Fund from the proceeds of all lotteries after 11
the distributions under subsection (a) of this section and items (i) through (viii) of this 12
paragraph, an amount not to exceed $25,000,000 to be paid in two installments not later 13
than November 1 and June 1 of each fiscal year; 14
(x) after June 30, 2022, to the Major Sports and Entertainment 15
Event Program Fund established under § 10–611.2 of the Economic Development Article 16
from the money that remains in the State Lottery Fund from the proceeds of all lotteries 17
after the distributions under subsection (a) of this section and items (i) through (ix) of this 18
paragraph: 19
1. for fiscal year 2023, an amount equal to $10,000,000; [and] 20
2. for [each fiscal year thereafter] FISCAL YEARS 2024 AND 21
2025, the amount necessary to restore the Major Sports and Entertainment Event Program 22
Fund to a balance of $10,000,000; 23
3. FOR FISCAL YEAR 2026, THE AMOUNT NECESSAR Y TO 24
RESTORE THE MAJOR SPORTS AND ENTERTAINMENT EVENT PROGRAM FUND TO A 25
BALANCE OF $7,500,000; AND 26
4. FOR EACH FISCAL YEAR THEREAFTER , AN AMOUNT 27
EQUAL TO $5,000,000; 28
(xi) after June 30, 2024, into the Bus Rapid Transit Fund established 29
under § 2–802.1 of the Transportation Article for bus rapid transit system grants in 30
accordance with § 2–802 of the Transportation Article from the money that remains in the 31
State Lottery Fund from the proceeds of all lotteries after the distributions under 32
subsection (a) of this section and items (i) through (x) of this paragraph[,]: 33
1. FOR FISCAL YEAR 2025, an amount equal to $27,000,000 34
in each fiscal year; AND 35
92 HOUSE BILL 352
2. FOR EACH FISCAL YEAR THEREAFTER , AN AMOUNT 1
EQUAL TO $17,000,000 IN EACH FISCAL YEAR ; 2
(xii) after June 30, 2024, into the Prince George’s County Blue Line 3
Corridor Facility Fund established under § 10–657.6 of the Economic Development Article 4
from the money that remains in the State Lottery Fund from the proceeds of all lotteries 5
after the distributions under subsection (a) of this section and items (i) through (xi) of this 6
paragraph, $27,000,000; 7
(xiii) after June 30, 2024, a supplemental local impact grant of 8
$3,000,000 each fiscal year to the County Executive and County Council of Prince George’s 9
County from the money that remains in the State Lottery Fund from the proceeds of all 10
lotteries after the distributions under subsection (a) of this section and items (i) through 11
(xii) of this paragraph to be distributed in Prince George’s County in accordance with § 12
9–1A–31 of this title; and 13
(xiv) into the General Fund of the State the money that remains in the 14
State Lottery Fund from the proceeds of all lotteries after the distributions under 15
subsection (a) of this section and items (i) through (xiii) of this paragraph. 16
(2) The money paid into the General Fund under this subsection is 17
available in the fiscal year in which the money accumulates in the State Lottery Fund. 18
(c) The regulations of the Agency shall apportion the money in the State Lottery 19
Fund in accordance with subsection (b) of this section. 20
9–1A–27. 21
(d) (1) Each video lottery operation licensee shall retain [80%] 75% of the 22
proceeds of table games at the video lottery facility. 23
(2) On a properly approved transmittal prepared by the Commission, the 24
Comptroller shall pay the following amounts from the proceeds of table games at each video 25
lottery facility: 26
(i) 5% to the local jurisdiction in which the video lottery facility is 27
located, provided that: 28
1. 50% of the proceeds paid to Baltimore City shall be used 29
to fund school construction projects; and 30
2. 50% of the proceeds paid to Baltimore City shall be used 31
to fund the maintenance, operation, and construction of recreational facilities; [and] 32
(II) 5% TO THE GENERAL FUND THROUGH FISCAL Y EAR 2027; 33
AND 34 HOUSE BILL 352 93
[(ii)] (III) [15%] THE REMAINDER to the Education Trust Fund 1
established under § 9–1A–30 of this subtitle. 2
9–1E–06. 3
(c) (1) The term of a sports wagering license under this section is 5 years. 4
(2) On application by the sports wagering licensee and payment of the 5
license renewal fee under paragraph (3) of this subsection, the Commission shall renew for 6
5 years a sports wagering license if the licensee complies with all statutory and regulatory 7
requirements. 8
(3) The license renewal fee is equal to 1% of the [licensee’s] average annual 9
[proceeds from sports wagering] AMOUNT THE LICENSEE RETAINED UNDER § 10
9–1E–12(B)(1)(II), (III), OR (IV) OF THIS SUBTITLE for the preceding 3–year period [less 11
any proceeds remitted by the licensee in accordance with § 9–1E–12 of this subtitle]. 12
9–1E–12. 13
(b) (1) (i) Except as provided in subparagraphs (ii), (iii), and (iv) of this 14
paragraph, all proceeds from sports wagering shall be electronically transferred monthly 15
into the State Lottery Fund established under Subtitle 1 of this title. 16
(ii) A Class A–1 and A–2 sports wagering facility licensee shall 17
retain 85% of the proceeds from sports wagering conducted at the locations described in § 18
9–1E–09(a) of this subtitle. 19
(iii) A Class B–1 and B–2 sports wagering facility licensee shall 20
retain 85% of the proceeds from sports wagering conducted at the location described in the 21
licensee’s application. 22
(iv) A mobile sports wagering licensee shall retain [85%] 70% 80% 23
of the proceeds from online sports wagering received by the licensee. 24
(2) (I) [All] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 25
PARAGRAPH , ALL proceeds from sports wagering in the State Lottery Fund established 26
under Subtitle 1 of this title shall be distributed on a monthly basis, on a properly approved 27
transmittal prepared by the Commission to the Blueprint for Maryland’s Future Fund 28
established under § 5–206 of the Education Article. 29
(II) THROUGH FISCAL YEAR 2027, 15% FOR FISCAL YEAR 2026 30
AND EACH FISCAL YEAR THEREAFTER , 5% OF THE PROCEEDS ATTR IBUTABLE TO 31
MOBILE SPORTS WAGERING SHALL BE DE POSITED IN THE GENERAL FUND. 32
9–20B–05. 33 94 HOUSE BILL 352
(a) There is a Maryland Strategic Energy Investment Fund. 1
(e) The Fund consists of: 2
(1) all of the proceeds from the sale of allowances under § 2–1002(g) of the 3
Environment Article; 4
(2) money appropriated in the State budget to the Program; 5
(3) repayments and prepayments of principal and interest on loans made 6
from the Fund; 7
(4) [interest and investment earnings on the Fund; 8
(5)] compliance fees paid under § 7–705 of the Public Utilities Article; 9
[(6)] (5) money received from any public or private source for the benefit 10
of the Fund; 11
[(7)] (6) money transferred from the Public Service Commission under § 12
7–207.2(c)(3) of the Public Utilities Article; and 13
[(8)] (7) money distributed under § 2–614.1 of the Tax – General Article. 14
(f) The Administration shall use the Fund: 15
(1) to invest in the promotion, development, and implementation of: 16
(i) cost–effective energy efficiency and conservation programs, 17
projects, or activities, including measurement and verification of energy savings; 18
(ii) renewable and clean energy resources; 19
(iii) climate change programs directly related to reducing or 20
mitigating the effects of climate change; and 21
(iv) demand response programs that are designed to promote 22
changes in electric usage by customers in response to: 23
1. changes in the price of electricity over time; or 24
2. incentives designed to induce lower electricity use at times 25
of high wholesale market prices or when system reliability is jeopardized; 26
HOUSE BILL 352 95
(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 SUBS ECTION (G) OF THIS SECTION , TO PAY 30
COSTS ASSOCIATED WIT H THE AIR AND RADIATION ADMINISTRATION WITHIN THE 31
DEPARTMENT OF THE ENVIRONME NT; AND 32
[(13)] (14) to pay the expenses of the Program. 33
96 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 97
(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 SU PPORT 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 98 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 99
(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 an nual 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; 32 100 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 o n 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 PARAGRAPH (6) OF THIS SUBSECTION , THE difference between the total 30
employer contribution for local employees and the local share of the total employer 31
contribution for all local employees shall be the obligation of the State. 32
HOUSE BILL 352 101
(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
(6) (I) SUBJECT TO § 21–309.2 OF THIS SUBTITLE AND AS 4
PROVIDED UNDER SUBPA RAGRAPH (II) OF THIS PARAGRAPH , BEGINNING IN FISCAL 5
YEAR 2026, EACH COUNTY GOVERNME NT SHALL PAY TO THE BOARD OF TRUSTEES 6
THE FOLLOWING A MOUNTS: 7
COUNTY 8
GOVERNMENT 9
ALLEGANY 754,195 10
ANNE ARUNDEL 9,738,875 11
BALTIMORE CITY 8,802,114 12
BALTIMORE 10,352,112 13
CALVERT 1,647,480 14
CAROLINE 561,645 15
CARROLL 2,624,055 16
CECIL 1,327,122 17
CHARLES 2,786,366 18
DORCHESTER 590,506 19
FREDERICK 5,925,608 20
GARRETT 269,208 21
HARFORD 3,685,077 22
HOWARD 6,830,167 23
KENT 165,489 24
MONTGOMERY 20,861,475 25
PRINCE GEORGE’S 13,000,062 26
QUEEN ANNE’S 691,279 27
ST. MARY’S 1,562,014 28
SOMERSET 314,066 29
TALBOT 452,957 30
WASHINGTON 2,397,889 31
WICOMICO 1,704,888 32
WORCESTER 699,872 33
(II) 1. FOR FISCAL YEAR 2026, EACH COUNTY GOVERNME NT 34
SHALL PAY TO THE BOARD OF TRUSTEES ON OR BEFORE JANUARY 1, 2026, THE 35
AMOUNT REQUIRED UNDE R SUBPARAGRAPH (I) OF THIS PARAGRAPH . 36
2. BEGINNING IN FISCAL Y EAR 2027, EACH COUNTY 37
GOVERNMENT SHALL PAY TO THE BOARD OF TRUSTEES ON OR BEFORE EACH 38 102 HOUSE BILL 352
SEPTEMBER 1 THE AMOUNT REQUIRED UNDER SUBPARAGRAPH (I) OF THIS 1
PARAGRAPH . 2
(III) EACH FISCAL YEAR , THE AMOUNTS PAID UND ER 3
SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL REDUCE THE OBLIG ATIONS OF THE 4
STATE WITH RESPECT TO THE TEACHERS’ PENSION SYSTEM AND THE TEACHERS’ 5
RETIREMENT SYSTEM BY THE SAME AM OUNTS. 6
21–308. 7
(a) (1) On or before December 1 of each year, the Board of Trustees shall: 8
(i) certify to the Governor and the Secretary of Budget and 9
Management the rates to be used to determine the amounts to be paid by the State to the 10
accumulation fund of each of the several systems during the next fiscal year, including a 11
separate certification of the normal contribution rate for the Teachers’ Retirement System 12
and the Teachers’ Pension System; and 13
(ii) provide to the Secretary of Budget and Management a statement 14
of the total amount to be paid by the State as determined under § 21–304 of this subtitle to 15
the Teachers’ Retirement System and the Teachers’ Pension System expressed as a 16
percentage of the payroll of all members of those State systems. 17
(2) The Governor shall include in the budget bill: 18
(i) the total amount of the State’s contribution to each State system 19
as ascertained based on the rates certified by the Board of Trustees under paragraph (1) of 20
this subsection; 21
(ii) the additional amounts as ascertained under subsection (d) of 22
this section for the State’s payment to the professional and clerical employees of the 23
Department of Public Libraries of Montgomery County who are members of the Employees’ 24
Retirement System of Montgomery County and are excluded from memb ership in the 25
Teachers’ Retirement System or the Teachers’ Pension System; and 26
(iii) any additional amount required to be in the budget bill under § 27
3–501(c)(2)(ii) of this article. 28
(3) (i) For each of fiscal years 2016 through 2024, in addition to the 29
annual required contribution required under paragraph (2) of this subsection, the Governor 30
shall include in the budget bill a supplemental contribution of $75,000,000. 31
(ii) For fiscal year 2025 [and each fiscal year thereafter], in addition 32
to the annual required contribution required under paragraph (2) of this subsection, the 33
Governor shall include in the budget bill a supplemental contribution of $50,000,000 [until 34 HOUSE BILL 352 103
the total actuarial value of assets for the several systems divided by the total actuarial 1
accrued liability for the several systems equals a funding ratio of 85%]. 2
21–309.2. 3
(A) FOR PURPOSES OF MAKIN G DETERMINATIONS UND ER THIS SECTION , 4
THE TEACHERS’ PENSION SYSTEM AND THE TEACHERS’ RETIREMENT SYSTEM 5
SHALL BE CONSIDERED TOGETHER AS O NE STATE SYSTEM. 6
(B) (1) FOR FISCAL YEAR 2026, EACH COUNTY GOVERNME NT SHALL PAY 7
TO THE BOARD OF TRUSTEES ON OR BEFORE JANUARY 1, 2026, THE AMOUNT 8
SPECIFIED FOR THAT C OUNTY GOVERNMENT UND ER § 21–304(B)(6) OF THIS 9
SUBTITLE. 10
(2) BEGINNING IN FISCAL Y EAR 2027, EACH COUNTY GOVERNME NT 11
SHALL PAY TO THE BOARD OF TRUSTEES ON OR BEFORE EACH SEPTEMBER 1 THE 12
AMOUNT SPECIFIED FOR THAT COUNTY GOVERNME NT UNDER § 21–304(B)(6) OF 13
THIS SUBTITLE. 14
(C) (1) THE SECRETARY OF THE BOARD OF TRUSTEES MAY ALLOW A 15
GRACE PERIOD NOT TO EXCEED 10 CALENDAR DAYS FOR PA YMENT OF THE AMOUNTS 16
CERTIFIED UNDER THIS SECTION. 17
(2) IF A COUNTY GOVERNMEN T DOES NOT PAY THE A MOUNTS 18
REQUIRED UNDER THIS SECTION WITHIN THE T IME REQUIRED, ON NOTIFICATION BY 19
THE SECRETARY O F THE BOARD OF TRUSTEES THAT A DELIN QUENCY EXISTS , THE 20
STATE COMPTROLLER IMMEDIATE LY SHALL: 21
(I) EXERCISE THE RIGHT O F SETOFF AGAINST ANY MONEY DUE 22
OR COMING DUE TO THE DELINQUENT COUNTY GO VERNMENT; AND 23
(II) PAY TO THE BOARD OF TRUSTEES THE DELINQ UENT 24
AMOUNTS, INCLUDING INTEREST , WITHHELD IN ACCORDAN CE WITH THIS 25
PARAGRAPH . 26
(D) ON RECEIPT OF THE PAY MENTS FROM EACH COUN TY GOVERNMENT OR 27
THE STATE COMPTROLLER , THE BOARD OF TRUSTEES SHALL CREDIT THE 28
AMOUNTS RECEIVED TO THE ACCUMULATION FUN DS OF THE TEACHERS’ PENSION 29
SYSTEM AND THE TEACHERS’ RETIREMENT SYSTEM. 30
Article – Tax – General 31
2–202. 32
104 HOUSE BILL 352
(a) After making the distribution required under § 2–201 of this subtitle, within 1
20 days after the end of each quarter, the Comptroller shall distribute: 2
(1) except as provided in subsections (b) and (c) of this section, from the 3
revenue from the State admissions and amusement tax on electronic bingo and electronic 4
tip jars under § 4–102(e) of this article: 5
(i) for fiscal [year 2021 and each fiscal year thereafter] YEARS 2021 6
THROUGH 2025, the revenue attributable to a tax rate of 20% to the Maryland 7
E–Nnovation Initiative Fund under § 6–604 of the Economic Development Article; 8
(II) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 9
THEREAFTER , THE REVENUE ATTRIBUTABLE TO A TA X RATE OF 20% AS FOLLOWS: 10
1. $8,500,000 TO THE MARYLAND E–NNOVATION 11
INITIATIVE FUND UNDER § 6–604 OF THE ECONOMIC DEVELOPMENT ARTICLE; AND 12
2. THE REMAINDER TO THE GENERAL FUND OF THE 13
STATE; and 14
[(ii)] (III) for fiscal year 2021 and each fiscal year thereafter, the 15
revenue attributable to a tax rate of 5% as follows: 16
1. to the Maryland State Arts Council, as provided in § 4–512 17
of the Economic Development Article, $1,000,000 in each fiscal year; 18
2. to the Town of Chesapeake Beach, $300,000 in each fiscal 19
year; 20
3. to the Michael Erin Busch Sports Fund established under 21
§ 10–612.2 of the Economic Development Article, $500,000 in each fiscal year; and 22
4. the remainder to the Special Fund for Preservation of 23
Cultural Arts in Maryland, as provided in § 4–801 of the Economic Development Article; 24
and 25
(2) the remaining admissions and amusement tax revenue: 26
(i) to the Maryland Stadium Authority, county, or municipal 27
corporation that is the source of the revenue; or 28
(ii) if the Maryland Stadium Authority and also a county or 29
municipal corporation tax a reduced charge or free admission: 30
1. 80% of that revenue to the Authority; and 31
HOUSE BILL 352 105
2. 20% to the county or municipal corporation. 1
2–606. 2
(a) After making the distributions required under §§ 2–604, 2–605, and 2–605.1 3
of this subtitle, from the remaining income tax revenue from individuals, the Comptroller 4
shall distribute to an unallocated individual revenue account the income tax revenue: 5
(1) with respect to which an income tax return is not filed; and 6
(2) that is attributable to: 7
(i) income tax withheld from salary, wages, or other compensation 8
for personal services under Title 10 of this article; or 9
(ii) estimated income tax payments by individuals. 10
(b) (1) In June of each year, from current collections, the Comptroller shall 11
reserve an amount of unallocated revenue that the Comptroller estimates will be claimed 12
on returns and refunded to taxpayers within 3 years of the date the income tax return was 13
due to be filed, and distribute to each county, municipal corporation, and special taxing 14
district a pro rata share of the balance of the unallocated individual income tax revenue. 15
(2) The Comptroller shall adjust the amount distributed under paragraph 16
(1) of this subsection to a county, municipal corporation, or special taxing district to allow 17
for the proportionate part of tax claim payments for a prior calendar year made after a 18
distribution is made to the county, municipal corporation, or special taxing district for that 19
year. 20
(H) (1) ON OR BEFORE JUNE 30, 2025, THE COMPTROLLER SHALL 21
DISTRIBUTE $230,000,000 FROM THE LOCAL RESERVE ACCOUNT ESTABLISHED T O 22
COMPLY WITH THIS SEC TION TO THE GENERAL FUND OF THE STATE. 23
(2) ON OR BEFORE JUNE 30, 2026, THE COMPTROLLER SHALL 24
DISTRIBUTE $40,567,430 FROM THE LOCAL RESERVE ACCOUNT ESTABLISHED T O 25
COMPLY WITH THIS SEC TION TO THE GENERAL FUND OF THE STATE. 26
(I) (1) ON OR BEFORE JULY 31, 2025, THE COMPTROLLER SHALL 27
DISTRIBUTE $37,300,000 FROM THE LOCAL RESERVE ACCOUNT ESTABLISHED T O 28
COMPLY WITH THIS SEC TION TO THE DIVISION OF PAID LEAVE WITHIN THE 29
MARYLAND DEPARTMENT OF LABOR. 30
(2) THE MARYLAND DEPARTMENT OF LABOR SHALL REIMBURSE 31
THE LOCAL RESERVE ACCOUNT WITHIN 2 YEARS AFTER CONTRIBU TIONS INTO THE 32
DEPARTMENT ’S FAMILY AND MEDICAL LEAVE INSURANCE FUND BEGIN. 33
106 HOUSE BILL 352
[(h)] (I) (J) In each of fiscal years 2026 through 2060, in addition to the amounts 1
distributed under subsection (b) of this section, the Comptroller shall distribute 2
$10,000,000 of the remaining income tax revenue from individuals to the Local Reserve 3
Account established to comply with this section to repay the $350,000,000 transfer to the 4
Education Trust Fund required under subsection (e) of this section. 5
[(i)] (J) (K) For fiscal years 2024 through 2043, in addition to the amounts 6
distributed under subsections (b) and [(h)] (I) (J) of this section, the Comptroller shall 7
distribute $10,000,000 of the remaining income tax revenue from individuals to the Local 8
Reserve Account established to comply with this section. 9
(K) (L) FOR FISCAL YEARS 2029 THROUGH 2038, IN ADDITION TO THE 10
AMOUNTS DISTRIBUTED UNDER SUBSECTIONS (B), (I), AND (J) (J), AND (K) OF THIS 11
SECTION, THE COMPTROLLER SHALL DIS TRIBUTE $23,000,000 $27,056,743 OF THE 12
REMAINING INCOME TAX REVENUE FROM INDIVID UALS TO THE LOCAL RESERVE 13
ACCOUNT ESTABLISHED T O COMPLY WITH THIS S ECTION TO REPAY THE 14
$230,000,000 $270,567,430 TRANSFER TO THE GENERAL FUND OF THE STATE 15
REQUIRED UNDER SUBSE CTION (H) OF THIS SECTION. 16
Article – Tax – Property 17
13–209. 18
(a) (4) In any fiscal year in which transfer tax revenue is used to pay debt 19
service on outstanding bonds under paragraph (1) of this subsection, the distribution of 20
revenues in the special fund under this section and as specified in § 5–903(a)(2)(i)1A of the 21
Natural Resources Article, for State land acquisition, or to the Agricultural Land 22
Preservation Fund to the extent any debt service is attributable to that Fund, shall be 23
reduced by an amount equal to the debt service for the fiscal year. 24
(c) (1) Subject to subsection (e) of this section, of the balance of the revenue in 25
the special fund, not required under subsection (b) of this section: 26
(i) for the fiscal year beginning July 1, 2002, $47,268,585 shall be 27
allocated to the General Fund of the State and the remainder shall be allocated as provided 28
in subsection (d) of this section; 29
(ii) for the fiscal year beginning July 1, 2003, $102,833,869 shall be 30
allocated to the General Fund of the State and the remainder shall be allocated as provided 31
in the State budget; 32
(iii) for the fiscal year beginning July 1, 2004, $147,374,444 shall be 33
allocated to the General Fund of the State, and the remainder shall be allocated as provided 34
in the State budget; and 35
HOUSE BILL 352 107
(iv) for the fiscal year beginning July 1, 2005, $68,223,132 shall be 1
allocated to the General Fund of the State and the remainder shall be allocated as provided 2
in subsection (d) of this section. 3
(2) Subject to subsection (e) of this section, for the fiscal years beginning 4
July 1, 2006 and each subsequent fiscal year, the balance of the revenue in the special fund, 5
not required under subsection (b) of this section shall be allocated as provided in subsection 6
(d) of this section. 7
(3) (I) SUBJECT TO SUBSECTION (E) OF THIS SECTION, FOR FISCAL 8
YEARS 2026 THROUGH 2029, OF THE BALANCE OF TH E REVENUE IN THE SPE CIAL 9
FUND NOT REQUIRED UN DER SUBSECTION (B) OF THIS SECTION, $25,000,000 SHALL 10
BE ALLOCATED TO THE GENERAL FUND OF THE STATE AND THE REMAIND ER SHALL 11
BE ALLOCATED AS PROV IDED IN SUBSECTION (D) OF THIS SECTION. 12
(II) FOR EACH OF FISCAL YE ARS 2026 THROUGH 2029, THE 13
ALLOCATION REQUIRED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL 14
REDUCE THE AMOUNT ALLOCAT ED FOR PROGRAM OPEN SPACE LAND ACQUISITIO N 15
PURPOSES IDENTIFIED IN SUBSECTION (D)(1)(II) OF THIS SECTION AND § 16
5–903(A)(2)(I)1A OF THE NATURAL RESOURCES ARTICLE, THE AGRICULTURAL 17
LAND PRESERVATION FUND IDENTIFIED IN SU BSECTION (D)(2) OF THIS SECTION, 18
AND THE RURAL LEGACY PROGRAM IDENTIFIED IN SUBSECTION (D)(3) OF THIS 19
SECTION AND § 5–903(A)(2)(III) OF THE NATURAL RESOURCES ARTICLE BY AN 20
AMOUNT THAT IS PROPO RTIONAL TO THE AMOUN T OF REVENUE EACH PR OGRAM IS 21
ESTIMATED TO RECEIVE FOR THE FISCAL YEAR. 22
(d) Subject to subsections (d–1) and (e) of this section, for the fiscal year beginning 23
July 1, 2002 and for each subsequent fiscal year, the balance of the revenue in the special 24
fund, not required under subsection (b) of this section and not allocated to the General Fund 25
under subsection (c)(1) AND (3) of this section shall be allocated in the State budget as 26
follows: 27
(1) (i) 75.15% for the purposes specified in Title 5, Subtitle 9 of the 28
Natural Resources Article (Program Open Space); and 29
(ii) an additional 1% for Program Open Space, for land acquisition 30
purposes as specified in § 5–903(a)(2) of the Natural Resources Article; 31
(2) 17.05% for the Agricultural Land Preservation Fund established under 32
§ 2–505 of the Agriculture Article; 33
(3) 5% for the Rural Legacy Program established under § 5–9A–01 of the 34
Natural Resources Article; and 35
(4) 1.8% for the Heritage Conservation Fund established under § 5–1501 36
of the Natural Resources Article. 37 108 HOUSE BILL 352
(e) The sums allocated in subsection (d) of this section may not revert to the 1
General Fund of the State. 2
(h) (1) [If] EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS 3
SUBSECTION, IF an appropriation or a transfer from the special fund to the General Fund 4
occurs after the fiscal year ending June 30, 2018, the Governor shall include in the annual 5
budget bills for each of the 3 successive fiscal years following the fiscal year in which a 6
transfer is made a General Fund appropriation to the special fund equal to one–third of the 7
cumulative amount of the appropriation or transfer from the special fund to the General 8
Fund for the applicable fiscal year. 9
(2) The appropriation required under paragraph (1) of this subsection: 10
(i) represents reimbursement for the cumulative amount of any 11
appropriation or transfer from the special fund to the General Fund for the applicable fiscal 12
year; 13
(ii) is not subject to the provisions of subsections (a), (b), (c), and (f) 14
of this section; 15
(iii) shall be allocated as provided in subsection (d) of this section and 16
§ 5–903 of the Natural Resources Article; 17
(iv) shall be made until the cumulative total appropriated under 18
paragraph (1) of this subsection is equal to the cumulative amount of any appropriation or 19
transfer from the special fund to the General Fund for the applicable fiscal year; and 20
(v) shall be reduced by the amount of any appropriation from the 21
General Fund to the special fund that: 22
1. exceeds the required appropriation under this subsection; 23
and 24
2. is identified as an appropriation for reimbursement under 25
this subsection. 26
(3) THE APPROPRIATION REQ UIRED UNDER PARAGRAP H (1) OF THIS 27
SUBSECTION DOES NOT APPLY TO TRANSFERS F ROM THE SPECIAL FUND TO THE 28
GENERAL FUND THAT OCCUR IN FI SCAL YEARS 2026 THROUGH 2029. 29
Article – Transportation 30
2–103.1. 31
HOUSE BILL 352 109
(m) (2) (iii) [1.] For the period beyond the budget request year, the 1
financial forecast: 2
[A.] 1. Shall maximize the use of funds for the capital 3
program; AND 4
[B.] 2. Except as authorized by law, may not withhold or 5
reserve funds for capital transportation grants to counties or municipal corporations[; and 6
C. Except as provided in subsubparagraph 2 of this 7
subparagraph, shall increase the operating expenses, net of availability payments paid to 8
public–private partnership concessionaires, each year by at least the 5–year average 9
annual rate of change in the operating expenses of the Department, ending with the most 10
recently completed fiscal year. 11
2. The assumed rate of future operating budget growth 12
under subsubparagraph 1C of this subparagraph may not increase or decrease by more 13
than 0.5 percentage points from the growth rate assumed in the previous forecast]. 14
3–202. 15
(a) The Department from time to time may issue its bonds on behalf of this State 16
to finance the cost of any one or more or combination of transportation facilities. 17
(b) The bonds shall be known as “consolidated transportation bonds” and may be 18
issued in any amount as long as the aggregate outstanding and unpaid principal balance 19
of these bonds and bonds of prior issues does not exceed at any one time the sum of [$4.5 20
billion] $5,000,000,000. 21
(c) The preferred method of issuance of the Department’s consolidated 22
transportation bonds is by a public, competitive sale. 23
(d) The Department may issue its consolidated transportation bonds at a private, 24
negotiated sale provided that: 25
(1) The Secretary determines that extraordinary credit market conditions 26
exist that warrant the use of this method rather than a public, competitive sale; and 27
(2) The Secretary determines that the terms and conditions, including 28
price, interest rates, and payment dates, that can be achieved by a private negotiated sale 29
are more advantageous to the State. 30
(e) The maximum outstanding and unpaid principal balance of consolidated 31
transportation bonds and bonds of prior issues as of June 30 for the next fiscal year: 32
110 HOUSE BILL 352
(1) Shall be established each year by the General Assembly in the State 1
budget; and 2
(2) May not exceed the limit established in subsection (b) of this section. 3
3–601. 4
(d) If the Department intends to pledge any future federal aid from any source to 5
support repayment of bonds issued under this subtitle: 6
(1) The aggregate outstanding and unpaid principal amount of debt issued 7
under this subtitle or Title 4, Subtitle 3 of this article that is secured by a pledge of future 8
federal aid may not exceed $1,000,000,000 as of June 30 of any fiscal year, provided that 9
the proceeds may be used only for: 10
(i) Designing and constructing the Baltimore Red Line; 11
(ii) Procuring zero–emission buses consistent with § 7–406 of the 12
Transportation Article and constructing related infrastructure, including bus maintenance 13
facilities; 14
(iii) Developing and constructing the Southern Maryland Rapid 15
Transit Corridor; 16
(iv) Designing and constructing improvements to the Maryland 17
Route 2 and Route 4 corridor, including the Thomas Johnson Bridge; 18
(v) Designing and constructing improvements to the Maryland 19
Route 90 corridor; [or] 20
(vi) Designing and constructing improvements to the Interstate 81 21
corridor; OR 22
(VII) MAJOR REHABILITATION OF THE EXISTING LIGH T RAIL 23
SYSTEM, INCLUDING REPLACEMEN T LIGHT RAIL VEHICLE S AND RELATED STATIO N 24
AND MAINTENANCE FACI LITY IMPROVEMENTS ; 25
(2) The date of maturity may not be later than 15 years after the date of 26
issue; and 27
(3) No part of the tax levied under § 3–215 of this title may be repealed, 28
diminished, or applied to any other purpose until: 29
(i) The bonds issued under this subtitle and interest on them have 30
become due and fully paid; or 31
HOUSE BILL 352 111
(ii) Adequate and complete provision for payment of the principal 1
and interest has been made. 2
7–205.1. 3
FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR THEREAFTER , THE 4
GOVERNOR SHALL INCLUD E IN THE STATE BUDGET AN APPRO PRIATION O F 5
$10,000,000 FROM THE TRANSPORTATION TRUST FUND TO THE BUS RAPID 6
TRANSIT FUND ESTABLISHED UNDE R § 2–802.1 OF THIS ARTICLE FOR BUS RAPID 7
TRANSIT SYSTEM GRANT S IN ACCORDANCE WITH § 2–802 OF THIS ARTICLE. 8
7–406. 9
(c) (1) Except as provided in paragraph (2) of this subsection, beginning in 10
fiscal year [2027] 2032, the Administration may not enter into a contract to purchase buses 11
for the Administration’s State transit bus fleet that are not zero–emission buses. 12
(2) If the Administration determines that a sufficient number of 13
zero–emission buses or necessary electric vehicle supply equipment that meets the 14
Administration’s performance and contractual requirements are not commercially 15
available in a particular year, the Administration may purchase an alternative–fuel bus 16
for that use, including hybrid buses, to ensure that an appropriate number of buses are 17
purchased each year to maintain the State transit bus fleet. 18
(3) The full cost of zero–emission and alternative–fuel buses purchased 19
under this subsection shall be paid from the Transportation Trust Fund OR BONDS 20
BACKED BY FUTURE FED ERAL AID CONSISTENT WITH THIS SECTION AN D § 3–601 OF 21
THIS ARTICLE. 22
12–120. 23
(a) In this section, “miscellaneous fees” means all fees collected by the 24
Administration under this article other than: 25
(1) The vehicle titling tax; 26
(2) One–half of the certificate of title fee under § 13–802 of this article; and 27
(3) Vehicle registration fees under Part II of Title 13, Subtitle 9 of this 28
article. 29
(b) Except as provided in this section, the Administration may not alter the 30
miscellaneous fees that the Administration is authorized under this article to establish. 31
(c) (1) Subject to the limitations under subsection (d) of this section, before the 32
start of any fiscal year the Administration by regulation may alter, effective beginning in 33 112 HOUSE BILL 352
the upcoming fiscal year, the levels of the miscellaneous fees that the Administration is 1
authorized under this article to establish. 2
(2) The Administration shall alter the levels of miscellaneous fees for the 3
upcoming fiscal year if the projected cost recovery under subsection (d) of this section 4
exceeds [100%] 115%. 5
(d) The Administration shall set the levels of miscellaneous fees so that the total 6
amount of projected revenues from all miscellaneous fees for the upcoming fiscal year is at 7
least [95 percent] 95% but does not exceed [100 percent] 115% of the sum of: 8
(1) The operating budget of the Administration for that fiscal year as 9
approved by the General Assembly in the annual State budget; 10
(2) The average annual capital program of the Administration as reported 11
in the 6–year Consolidated Transportation Program described in § 2–103.1 of this article; 12
and 13
(3) The Administration’s portion of the cost for that fiscal year of the 14
Department’s data center operations, except for the cost of data center operations 15
attributable to other administrations’ activities. 16
(e) (1) The Administration may not alter miscellaneous fees more than once in 17
any fiscal year. 18
(2) The Administration need not reduce fees for the upcoming fiscal year if 19
legislative budget modifications cause the projected cost recovery percentage to exceed [100 20
percent] 115%. 21
(3) The level of a miscellaneous fee set by the Administration remains in 22
effect until again altered by the Administration as provided under this section. 23
13–809. 24
(a) (1) In this section the following words have the meanings indicated. 25
(2) “Fair market value” means: 26
(i) As to the sale of any new or used vehicle by a licensed dealer, the 27
total purchase price, as certified by the dealer; 28
(ii) Except as provided in item (iv) of this paragraph, as to a used 29
vehicle that is sold by any person other than a licensed dealer and that has a designated 30
model year that is 7 years old or older, the greater of: 31
1. The total purchase price; or 32
HOUSE BILL 352 113
2. $640; 1
(iii) Except as provided in item (iv) of this paragraph, as to any other 2
used vehicle that is sold by any person other than a licensed dealer: 3
1. The total purchase price, if the total purchase price is less 4
than $500 below the retail value of the vehicle as shown in a national publication of used 5
car values adopted for use by the Department; or 6
2. If the total purchase price is $500 or more below the retail 7
value of the vehicle as shown in a national publication of used car values adopted for use 8
by the Department: 9
A. The total purchase price, if verified to the satisfaction of 10
the Administration by a notarized bill of sale submitted in accordance with subsection (d)(2) 11
of this section; or 12
B. The valuation shown in the national publication of used 13
car values, if the Administration finds that the documentation submitted under subsection 14
(d)(2) of this section fails to verify the total purchase price; 15
(iv) As to a used trailer, a motor scooter, a moped, or an off–highway 16
recreational vehicle that is sold by any person other than a licensed dealer, the greater of: 17
1. The total purchase price; or 18
2. $320; and 19
(v) In any other case, the valuation shown in a national publication 20
of used car values adopted for use by the Department. 21
(3) (i) Subject to subparagraphs (ii) and (iii) of this paragraph, [“total 22
purchase] “PURCHASE price” means the price of a vehicle agreed on by the buyer and the 23
seller, including any dealer processing charge[, less an allowance for trade–in but with no 24
allowance for other nonmonetary consideration]. 25
(ii) As to a person trading in a nonleased vehicle to enter into a lease 26
for a period of more than 180 consecutive days, [“total purchase] “PURCHASE price” means 27
the retail value of the vehicle as certified by the dealer, including any dealer processing 28
charge[, less an allowance for the trade–in of the nonleased vehicle but with no allowance 29
for other nonmonetary consideration]. 30
(iii) As to a person trading in a leased vehicle to enter into another 31
lease for a period of more than 180 consecutive days with a different leasing company or to 32
purchase a vehicle, [“total purchase] “PURCHASE price” means the retail value of the 33
vehicle as certified by the dealer, including any dealer processing charge[, less an allowance 34 114 HOUSE BILL 352
for the trade–in of the leased vehicle but with no allowance for other nonmonetary 1
consideration]. 2
(4) “TOTAL PURCHASE PRICE ” MEANS: 3
(I) IF THE PURCHASE PRICE EXCEEDS $15,000, THE PURCHASE 4
PRICE; OR 5
(II) IF THE PURCHASE PRICE IS $15,000 OR LESS, THE 6
PURCHASE PRICE LESS AN ALLOWANCE FOR A TRAD E–IN VEHICLE, BUT WITH NO 7
ALLOWANCE FOR OTHER NONMONETARY CONSIDER ATION. 8
[(4)] (5) “Trailer” has the meaning stated in § 11–169 of this article. 9
(b) (1) Except as otherwise provided in this part, in addition to any other 10
charge required by the Maryland Vehicle Law, an excise tax is imposed: 11
(i) For each original and each subsequent certificate of title issued 12
in this State for a motor vehicle, a trailer, a semitrailer, a moped, a motor scooter, or an 13
off–highway recreational vehicle for which sales and use tax is not collected at the time of 14
purchase; and 15
(ii) Except as provided in paragraph (2) of this subsection, for each 16
motor vehicle, trailer, or semitrailer that is in interstate operation and registered under § 17
13–109(c) or (d) of this title without a certificate of title. 18
(d) Each applicant for a certificate of title or for registration under § 13–109(c) of 19
this title shall submit to the Administration: 20
(1) The information that the Administration considers necessary as to: 21
(i) The time of purchase of the vehicle; and 22
(ii) The purchase price and other information relating to the 23
determination of the fair market value of the vehicle which may include, but is not limited 24
to: 25
1. Canceled checks; 26
2. Money order receipts; 27
3. Loan documents; or 28
4. A written description of the vehicle’s condition; and 29
HOUSE BILL 352 115
(2) If the excise tax is based on the total purchase price of the vehicle as 1
provided in subsection (a)(2)(iii)2A of this section, a notarized bill of sale that: 2
(i) Is designed by, and obtained from, the Administration; 3
(ii) Is signed by the buyer and the seller; and 4
(iii) Includes a statement explaining why the vehicle was sold at the 5
price stated in the bill of sale. 6
13–901. 7
(a) Subject to subsection (b) of this section, the fees specified in this subtitle for 8
the registration of a classified vehicle or for any interchangeable registration shall be paid 9
to the Administration: 10
(1) Before issuance of the registration and any registration plates and 11
registration cards; and 12
(2) Except as otherwise expressly provided, during each registration year 13
before the issuance or renewal of the registration. 14
(b) (1) The Administration shall allow for payment of registration fees, as 15
specified in this subtitle, in installments throughout the registration period, as determined 16
by the Administration. 17
(2) THE ADMINISTRATION SHALL COLLECT A REASONABLE 18
INSTALLMENT FEE FOR UTILIZATION OF A PAY MENT PLAN AUTHORIZED IN 19
ACCORDANCE WITH PARA GRAPH (1) OF THIS SUBSECTION . 20
13–912. 21
(a) When registered with the Administration, every passenger car and station 22
wagon, except as otherwise provided in this part, is a Class A (passenger) vehicle. 23
(b) For each Class A (passenger) vehicle, the annual registration fee is: 24
(1) For a vehicle with a manufacturer’s shipping weight of 3,500 pounds or 25
less: 26
(i) On or after July 1, 2024, but before July 1, 2025, $70.50; and 27
(ii) On or after July 1, 2025, $80.50; 28
(2) For a vehicle with a manufacturer’s shipping weight of more than 3,500 29
pounds but not more than 3,700 pounds: 30
116 HOUSE BILL 352
(i) On or after July 1, 2024, but before July 1, 2025, $80.50; and 1
(ii) On or after July 1, 2025, $85.50; and 2
(3) For a vehicle with a manufacturer’s shipping weight of more than 3,700 3
pounds: 4
(i) On or after July 1, 2024, but before July 1, 2025, $121.50; AND 5
(ii) On or after July 1, 2025, [but before July 1, 2026, $126.50; and 6
(iii) On or after July 1, 2026,] $151.50. 7
13–916. 8
(a) When registered with the Administration, every single unit truck with two or 9
more axles is a Class E (truck) vehicle. 10
(b) (1) For each Class E (truck) vehicle, the annual registration fee is based on 11
the maximum gross weight of the vehicle or combination of vehicles, as follows: 12
Maximum Gross Weight Fee (per 1,000 Pounds 13
Limit (in Pounds) or Fraction Thereof) 14
10,000 (minimum) – 18,000 $9.00 15
18,001 – 26,000 11.75 16
26,001 – 40,000 12.75 17
40,001 – 60,000 14.75 18
60,001 – 80,000 (maximum) 16.00 19
(2) (i) On or after July 1, 2024, but before July 1, 2025, the annual 20
registration fee under paragraph (1) of this subsection is increased by an additional $45.00. 21
(ii) On or after July 1, 2025, [but before July 1, 2026, the annual 22
registration fee under paragraph (1) of this subsection is increased by an additional $50.00. 23
(iii) On or after July 1, 2026,] the annual registration fee under 24
paragraph (1) of this subsection is increased by an additional $75.00. 25
13–917. 26
Notwithstanding § 13–916(b) of this subtitle, for any Class E (truck) vehicle with a 27
manufacturer’s rated capacity of 3/4 ton or less and a maximum gross vehicle weight of 28
7,000 pounds or less, the annual registration fee is: 29
(1) For a vehicle with a maximum gross vehicle weight of 3,500 pounds or 30
less: 31
HOUSE BILL 352 117
(i) On or after July 1, 2024, but before July 1, 2025, $83.75; and 1
(ii) On or after July 1, 2025, $93.75; 2
(2) Except as provided in item (4) of this section, for a vehicle with a 3
maximum gross vehicle weight of more than 3,500 pounds but not more than 5,000 pounds: 4
(i) On or after July 1, 2024, but before July 1, 2025, $93.75; and 5
(ii) On or after July 1, 2025, $98.75; 6
(3) Except as provided in item (4) of this section, for a vehicle with a 7
maximum gross vehicle weight of more than 5,000 pounds: 8
(i) On or after July 1, 2024, but before July 1, 2025, $108.75; AND 9
(ii) On or after July 1, 2025, [but before July 1, 2026, $113.75; and 10
(iii) On or after July 1, 2026,] $138.75; and 11
(4) For a vehicle, regardless of the vehicle’s maximum gross vehicle weight, 12
for which the owner certifies on the registration application that the vehicle for which the 13
application is made will be used for construction activities: 14
(i) On or after July 1, 2024, but before July 1, 2025, $83.75; and 15
(ii) On or after July 1, 2025, $93.75. 16
13–937. 17
(a) When registered with the Administration, every multipurpose passenger 18
vehicle is a Class M (multipurpose) vehicle. 19
(b) For each Class M (multipurpose) vehicle, the annual registration fee is: 20
(1) For a vehicle with a manufacturer’s shipping weight of 3,500 pounds or 21
less: 22
(i) On or after July 1, 2024, but before July 1, 2025, $70.50; and 23
(ii) On or after July 1, 2025, $80.50; 24
(2) For a vehicle with a manufacturer’s shipping weight of more than 3,500 25
pounds but not more than 3,700 pounds: 26
(i) On or after July 1, 2024, but before July 1, 2025, $80.50; and 27
118 HOUSE BILL 352
(ii) On or after July 1, 2025, $85.50; and 1
(3) For a vehicle with a manufacturer’s shipping weight of more than 3,700 2
pounds: 3
(i) On or after July 1, 2024, but before July 1, 2025, $121.50; AND 4
(ii) On or after July 1, 2025, [but before July 1, 2026, $126.50; and 5
(iii) On or after July 1, 2026,] $151.50. 6
(c) The Administration may by rule and regulation provide for the registration 7
under this section of all multipurpose passenger vehicles registered under another 8
classification. 9
13–955. 10
(a) In this section, “Fund” means the Maryland Emergency Medical System 11
Operations Fund. 12
(e) [The] EXCEPT AS PROVIDED IN SUBSECTION (F) OF THIS SECTION, THE 13
money in the Fund shall be used solely for: 14
(1) Medically oriented functions of the Department of State Police, Special 15
Operations Bureau, Aviation Division; 16
(2) The Maryland Institute for Emergency Medical Services Systems; 17
(3) The R Adams Cowley Shock Trauma Center at the University of 18
Maryland Medical System; 19
(4) The Maryland Fire and Rescue Institute; 20
(5) The provision of grants under the Senator William H. Amoss Fire, 21
Rescue, and Ambulance Fund in accordance with the provisions of Title 8, Subtitle 1 of the 22
Public Safety Article; and 23
(6) The Volunteer Company Assistance Fund in accordance with the 24
provisions of Title 8, Subtitle 2 of the Public Safety Article. 25
(F) FOR FISCAL YEARS 2025 AND 2026, THE MONEY IN THE FUND MAY BE 26
USED TO SUPPORT GENE RAL OPERATIONS OF TH E DEPARTMENT OF STATE POLICE, 27
SPECIAL OPERATIONS BUREAU, AVIATION COMMAND. 28
17–106. 29
HOUSE BILL 352 119
(a) If the required security for any vehicle lapses at any time, the registration of 1
that vehicle: 2
(1) Is suspended automatically as of the date of the lapse effective not later 3
than 60 days after notification to the Administration that the lapse has occurred; and 4
(2) Remains suspended until: 5
(i) The required security is replaced and the vehicle owner submits 6
evidence of replaced security on a form as prescribed by the Administration and certified 7
by an insurer or insurance producer; and 8
(ii) Any uninsured motorist penalty fee assessed is paid to the 9
Administration. 10
(b) (1) Except as provided in paragraph (2) of this subsection, each insurer or 11
other provider of required security immediately shall notify the Administration 12
electronically of those terminations or other lapses that are final. 13
(2) Each insurer or other provider of required security for a vehicle 14
registered as a Class B (for hire) vehicle under Title 13 of this article shall notify the 15
Administration within 45 days after a termination or other lapse that is final and occurs 16
anytime after the required security is issued or provided. 17
(c) On receipt of a notice under subsection (b) of this section, the Administration 18
shall: 19
(1) Make a reasonable effort to notify the owner of the vehicle that his 20
registration has been suspended; and 21
(2) Provide electronically the information contained in the notice of the 22
suspension to the Uninsured Division of the Maryland Automobile Insurance Fund. 23
(d) (1) Within 48 hours after an owner is notified by the Administration of the 24
suspension of registration, the owner shall surrender all evidences of that registration to 25
the Administration. 26
(2) If the owner fails to surrender the evidences of registration within the 27
48–hour period, the Administration: 28
(i) Shall attempt to recover from the owner the evidences of 29
registration; and 30
(ii) May suspend his license to drive until he returns to the Motor 31
Vehicle Administration the evidences of registration. 32
120 HOUSE BILL 352
(3) The Administration may enter into contracts with private parties to 1
procure the services of independent agents to assist in the recovery of the evidences of 2
registration as authorized in paragraph (2) of this subsection. 3
(e) (1) (i) 1. Except as provided in subparagraphs (iv) and (v) of this 4
paragraph, in addition to any other penalty provided for in the Maryland Vehicle Law, if 5
the required security for a vehicle terminates or otherwise lapses during its registration 6
year, the Administration may assess the owner of the vehicle with a penalty of $200 for 7
each vehicle without the required security for a period of 1 to 30 days. 8
2. If a fine is assessed, beginning on the 31st day the fine 9
shall increase by a rate of $7 for each day. 10
(ii) Each period during which the required security for a vehicle 11
terminates or otherwise lapses shall constitute a separate violation. 12
(iii) The penalty imposed under this subsection may not exceed 13
$3,500 for each violation in a 12–month period. 14
(iv) The Administration may not assess a penalty under this 15
subsection if: 16
1. The registration plates of the vehicle are returned to the 17
Administration within 10 days after the termination or lapse of the required security, as 18
shown by the records of the Administration; and 19
2. A. The certificate of title for the vehicle has been 20
transferred to a new owner; 21
B. The registered owner has moved out–of–state and the 22
registration plates are returned by mail; 23
C. A salvage certificate has been issued for the vehicle; or 24
D. A licensed dealer has taken possession of the vehicle with 25
an obligation to return the registration plates. 26
(v) Before the Administration may assess a penalty under this 27
subsection, the Administration shall first verify that the registration plates for the vehicle 28
were not returned to the Administration within 10 days after the termination or lapse of 29
the required security. 30
(2) (i) Except as provided under paragraph (3) of this subsection, a 31
penalty assessed under this subsection shall be paid as follows: 32
1. 70% to be allocated as provided in subparagraph (ii) of this 33
paragraph; and 34 HOUSE BILL 352 121
2. 30% to the Administration, which may be used by the 1
Administration, subject to subsection (f) of this section, to provide funding for contracts 2
with independent agents to assist in the recovery of evidences of registration as authorized 3
in subsection (d)(3) of this section. 4
(ii) For each fiscal year beginning on or after July 1, 2014, the 5
percentage of the penalties specified under subparagraph (i)1 of this paragraph shall be 6
allocated among the Safe Schools Fund, the Vehicle Theft Prevention Fund, the Maryland 7
Automobile Insurance Fund, [the Driver Education in Public High Schools Fund, the 8
State–Aided Institutions Field Trip Fund,] and the General Fund as follows: 9
1. $600,000 to the Safe Schools Fund; 10
2. $2,000,000 to the Vehicle Theft Prevention Fund; 11
3. The amounts specified under subparagraph (iii) of this 12
paragraph to the Maryland Automobile Insurance Fund; AND 13
4. [$2,000,000 to the Driver Education in Public High 14
Schools Fund; 15
5. $600,000 to the State–Aided Institutions Field Trip Fund; 16
and 17
6.] The balance to the General Fund. 18
(iii) 1. Except for fiscal year 2024 and except as provided under 19
subsubparagraph 3 of this subparagraph, the amount distributed to the Maryland 20
Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall equal the 21
amount distributed to the Maryland Automobile Insurance Fund in the prior fiscal year 22
under the provisions of this paragraph adjusted by the change for the calendar year 23
preceding the fiscal year in the Consumer Price Index – All Urban Consumers – Medical 24
Care as published by the United States Bureau of Labor Statistics. 25
2. For fiscal year 2024, 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 in the prior 28
fiscal year under the provisions of this paragraph adjusted by the change for the calendar 29
year preceding the fiscal year in the Consumer Price Index – All Urban Consumers – 30
Medical Care as published by the United States Bureau of Labor Statistics plus an 31
additional $2,000,000. 32
3. For fiscal year 2025, the amount distributed to the 33
Maryland Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall 34
equal the amount distributed to the Maryland Automobile Insurance Fund calculated in 35
accordance with subsubparagraph 1 of this subparagraph: 36 122 HOUSE BILL 352
A. Plus an additional $3,000,000 dedicated to the exclusive 1
use of the Uninsured Division, which shall become part of the base amount used to calculate 2
the amount distributed under subsubparagraph 1 of this subparagraph in subsequent fiscal 3
years; but 4
B. Excluding the $2,000,000 distributed to the Fund in fiscal 5
year 2024. 6
TITLE 18.8. RETAIL DELIVERY FEE. 7
18.8–101. 8
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 9
INDICATED. 10
(B) “MARKETPLACE FACILITAT OR” HAS THE MEANING STAT ED IN § 11–101 11
OF THE TAX – GENERAL ARTICLE. 12
(C) “MARKETPLACE SELLER ” HAS THE MEANING S TATED IN § 11–101 OF 13
THE TAX – GENERAL ARTICLE. 14
(D) (1) “RETAIL DELIVERY ” MEANS A DELIVERY TO A PERSON LOCATED 15
IN THE STATE OF TANGIBLE PER SONAL PROPERTY PURCH ASED BY A PERSON 16
LOCATED IN THE STATE AS PART OF A RE TAIL SALE THAT IS SU BJECT TO THE SALES 17
AND USE TAX. 18
(2) “RETAIL DELIVERY ” DOES NOT INCLUDE PIC KUP BY THE BUYER 19
AT THE VENDOR ’S PLACE OF BUSINESS , INCLUDING CURBSIDE D ELIVERY. 20
(E) “RETAIL DELIVERY FEE ” MEANS THE FEE IMPOSE D UNDER THIS TITLE 21
ON A RETAIL DELIVERY . 22
(F) “RETAIL SALE” INCLUDES A SALE FOR USE, AS DEFINED IN § 11–101 OF 23
THE TAX – GENERAL ARTICLE. 24
(G) “SALES AND USE TAX ” MEANS THE TAX IMPOSE D UNDER TITLE 11 OF 25
THE TAX – GENERAL ARTICLE. 26
(H) “TANGIBLE PERSONAL PRO PERTY” HAS THE MEANING STAT ED IN § 27
11–101 OF THE TAX – GENERAL ARTICLE. 28
(I) “VENDOR” HAS THE MEANING STAT ED IN § 11–101 OF THE TAX – 29
GENERAL ARTICLE. 30
HOUSE BILL 352 123
18.8–102. 1
A RETAIL DELIVERY FEE AND THE REQUIREMENTS OF THIS TITLE APPLY ONLY 2
TO: 3
(1) A VENDOR THAT MADE RET AIL SALES TOTALING $500,000 OR 4
MORE: 5
(I) IN THE PREVIOUS CALEN DAR YEAR; OR 6
(II) SUBJECT TO § 18.8–105(A)(2) OF THIS SUBTITLE , IN THE 7
CURRENT CALENDAR YEA R; OR 8
(2) A MARKETPLACE FACILITA TOR THAT FACILITATED RETAIL SALES 9
OF MARKETPLACE SELLE RS TOTALING $100,000 OR MORE: 10
(I) IN THE PREVIOUS CALENDAR YE AR; OR 11
(II) SUBJECT TO § 18.8–105(A)(3) OF THIS SUBTITLE , IN THE 12
CURRENT CALENDAR YEA R. 13
18.8–103. 14
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A VENDOR OR 15
MARKETPLACE FACILITA TOR SHALL PAY A RETA IL DELIVERY FEE EQUA L TO 75 16
CENTS ON EACH RETAIL DELIVERY TRANSACTION THE VENDOR OR MARKET PLACE 17
FACILITATOR MAKES IN THE STATE. 18
(2) (I) THE RETAIL DELIVERY F EE SHALL BE INCREASE D JULY 1, 19
2026, AND EACH JULY 1 THEREAFTER IN ACCORD ANCE WITH THIS PARAG RAPH. 20
(II) ON OR BEFORE JUNE 1 EACH YEAR, THE COMPTROLLER 21
SHALL DETERMINE AND ANNOUNCE: 22
1. THE GROWTH IN THE CONSUMER PRICE INDEX FOR 23
ALL URBAN CONSUMERS AS DETERMIN ED BY THE COMPTROLLER UNDER 24
SUBPARAGRAPH (III) OF THIS PARAGRAPH ; AND 25
2. THE RETAIL DELIVERY F EE EFFECT IVE FOR THE 26
FISCAL YEAR BEGINNIN G ON THE FOLLOWING JULY 1 AS DETERMINED BY THE 27
COMPTROLLER UNDER SUB PARAGRAPH (IV) OF THIS PARAGRAPH . 28
(III) 1. IN THIS SUBPARAGRAPH , “CONSUMER PRICE INDEX 29
FOR ALL URBAN CONSUMERS” MEANS THE INDEX PUBL ISHED MONTHLY BY THE 30 124 HOUSE BILL 352
BUREAU OF LABOR STATISTICS OF THE U.S. DEPARTMENT OF LABOR THAT IS THE 1
U.S. CITY AVERAGE OF ALL ITEMS IN A BASKET OF CONSUMER GOODS AND 2
SERVICES. 3
2. THE PERCENTAGE GROWTH IN THE CONSUMER 4
PRICE INDEX FOR ALL URBAN CONSUMERS SHALL BE DE TERMINED BY COMPARING 5
THE AVERAGE OF THE I NDEX FOR THE 12 MONTHS ENDING ON THE PRECEDING 6
APRIL 30 TO THE AVERAGE OF TH E INDEX FOR THE PRIO R 12 MONTHS. 7
(IV) SUBJECT TO SUBPARAGRA PH (V) OF THIS PARAGRAPH , ON 8
JULY 1 EACH YEAR, THE RETAIL DELIVERY FEE SHALL BE INCREA SED BY THE 9
AMOUNT, ROUNDED TO THE NEARE ST ONE–TENTH OF A CENT , THAT EQUALS THE 10
PRODUCT OF MULTIPLYI NG: 11
1. THE RETAIL DELIVERY F EE IN EFFECT ON THE DATE 12
OF THE COMPTROLLER ’S ANNOUNCEMENT UNDER SUBPARAGRAPH (II) OF THIS 13
PARAGRAPH ; AND 14
2. THE PERC ENTAGE GROWTH IN THE CONSUMER 15
PRICE INDEX FOR ALL URBAN CONSUMERS. 16
(V) IF THERE IS A DECLINE OR NO GROWTH IN THE CONSUMER 17
PRICE INDEX FOR ALL URBAN CONSUMERS, THE RETAIL DELIVERY FEE SHALL 18
REMAIN UNCHANGED . 19
(B) (1) A VENDOR OR MARKETPLAC E FACILITATOR SHALL: 20
(I) COLLECT THE RETAIL DE LIVERY FEE FROM A BU YER; OR 21
(II) PAY THE RETAIL DELIVE RY FEE ON BEHALF OF A BUYER. 22
(2) IF A VENDOR OR MARKET PLACE FACILITATOR CO LLECTS THE 23
RETAIL DELIVERY FEE FROM THE BUYER , THE RETAIL DELIVERY FEE SHALL BE: 24
(I) CHARGED IN ADDITION T O ANY OTHER DELIVERY FEE 25
ASSESSED BY THE VEND OR OR MARKETPLACE FA CILITATOR; 26
(II) ITEMIZED AS A SEPARAT E LINE ITEM ON THE B UYER’S 27
RECEIPT, INVOICE, OR OTHER BILL OF SAL E, DISTINCT FROM THE SA LES PRICE, 28
SALES AND USE TAX , OR ANY OTHER TAX OR FEE IMPOSED; AND 29
(III) LISTED ON THE RECEIPT , INVOICE, OR OTHER BILL OF SAL E 30
AS “DELIVERY IMPACT FEE ”. 31
HOUSE BILL 352 125
(C) A RETAIL DELIVERY FEE SHALL BE ASSESSED ON LY ONCE PER 1
TRANSACTION REGARDLE SS OF WHETHER : 2
(1) THE TANGIBLE PERSONAL PROP ERTY PURCHASED IS DE LIVERED 3
IN ONE SHIPMENT OR M ULTIPLE SHIPMENTS ; OR 4
(2) THE PURCHASE CONTAINS ONE ITEM OR MULTIPLE ITEMS OF 5
TANGIBLE PERSONAL PR OPERTY. 6
(D) THE RETAIL DELIVERY F EE MAY NOT BE REFUND ED TO THE BUYER 7
UNLESS THE RETA IL DELIVERY IN CANCE LED BY THE BUYER , VENDOR, 8
MARKETPLACE FACILITA TOR, OR DELIVERY PROVIDER . 9
18.8–104. 10
THE RETAIL DELIVERY F EE UNDER THIS TITLE DOES NOT APPLY TO TH E SALE 11
OR PURCHASE OF TANGI BLE PERSONAL PROPERT Y THAT IS EXEMPT FRO M THE 12
SALES AND USE T AX. 13
18.8–105. 14
(A) (1) (I) A VENDOR OR MARKETPLAC E FACILITATOR SHALL 15
COLLECT AND REMIT TH E RETAIL DELIVERY FE E TO THE COMPTROLLER IN THE 16
MANNER PRESCRIBED BY THE COMPTROLLER . 17
(II) THE REQUIREMENTS OF § 11–403.1 OF THE TAX – GENERAL 18
ARTICLE RELATING TO THE COLLECTION OF THE SALES AND USE TA X BY A 19
MARKETPLACE FACILITA TOR APPLY TO THE COL LECTION OF THE RETAI L DELIVERY 20
FEE BY A MARKETPLACE FACILITATOR. 21
(2) A VENDOR THAT DID NOT MAKE RETAIL SALES TO TALING 22
$500,000 OR MORE IN THE PREVI OUS CALENDAR YEAR SHALL REMIT THE RETA IL 23
DELIVERY FEE TO THE COMPTROLLER BEGINNING ON OR BEFORE THE FIR ST DAY 24
OF THE MONTH THAT IS 60 DAYS AFTER THE MONTH IN WHICH THE VENDOR MAKES 25
RETAIL SALES TOTALIN G $500,000 OR MORE IN CURRENT C ALENDAR YEAR . 26
(3) A MARKETPLACE FACILITATOR THAT DID NOT FACILITATE 27
RETAIL SALES OF MARK ETPLACE SELLERS TOTA LING $100,000 OR MORE IN THE 28
PREVIOUS CALENDAR YE AR SHALL REMIT THE R ETAIL DELIVERY FEE T O THE 29
COMPTROLLER BEGINNING ON OR BEFORE THE FIR ST DAY OF THE MONTH THAT IS 30
60 DAYS AFTER T HE MONTH IN WHICH TH E MARKETPLACE FACILI TATOR 31
FACILITATES THE RETA IL SALES OF MARKETPL ACE SELLERS TOTALING $100,000 32
OR MORE IN THE CURRE NT CALENDAR YEAR . 33
126 HOUSE BILL 352
(B) (1) A VENDOR OR MARKETPLAC E FACILITATOR SHALL : 1
(I) REPORT THE RETAIL DEL IVERY FEE ON A RETUR N AS 2
PRESCRIBED BY THE COMPTROLLER ; AND 3
(II) REMIT THE RETAIL DELI VERY FEE WITH THE RE TURN. 4
(2) A VENDOR OR MARKETPLAC E FACILITATOR SHALL FILE AND PAY 5
THE RETAIL DELIVERY FEE USING THE FILING CYCLE AND DUE DATES PRESCRIBED 6
BY THE COMPTROLLER IN AC CORDANCE WITH SUBSEC TION (A) OF THIS SECTION. 7
(C) (1) A VENDOR OR MARKETPLAC E FACILITATOR THAT C OLLECTS THE 8
RETAIL DELIVERY FEE FROM THE BUYER SHALL COLLECT THE RETAIL D ELIVERY 9
FEE IN THE SAME MANN ER AS THE SALES AND USE TAX. 10
(2) A VENDOR OR MARKETPLAC E FACILITATOR THAT U SES A 11
THIRD–PARTY ENTITY TO COLL ECT AND REMIT THE SA LES AND USE TAX MAY ELECT 12
TO HAVE THE THIRD –PARTY ENTITY COLLECT AND REMIT THE RETAIL DELIVERY 13
FEE. 14
(3) A VENDOR OR MARKETPLAC E FACILITATOR THAT P AYS THE 15
RETAIL DELIVERY FEE ON BEHALF OF A BUYER SH ALL REMIT THE RETAIL DELIVERY 16
FEE TO THE COMPTROLLER AS IF THE RETAIL DELIVERY FEE HAD BEEN COLLECTED 17
FROM THE BUYER ON TH E DATE OF THE RETAIL DELIVERY. 18
18.8–106. 19
(A) EXCEPT AS OTHERWISE P ROVIDED IN THIS TITL E, THE AUDIT, 20
ASSESSMENT , LIABILITY OR PAYMENT , REFUND, PENALTY, INTEREST, 21
ENFORCEMENT , COLLECTION REMEDIES , APPEAL, AND ADMINISTRATIVE 22
PROVISIONS THAT ARE APPLICABLE TO THE SA LES AND USE TAX APPL Y TO THE 23
RETAIL DELIVERY FEE . 24
(B) FROM THE REVENUE ATTR IBUTABLE TO THE RETAIL DEL IVERY FEE, 25
THE COMPTROLLER SHALL DIS TRIBUTE THE AMOUNT N ECESSARY TO PAY REFU NDS 26
RELATING TO THE RETA IL DELIVERY FEE TO A REFUND ACCOUNT . 27
(C) AFTER MAKING THE DIST RIBUTION REQUIRED UN DER SUBSECTION (B) 28
OF THIS SECTION , THE COMPTROLLER SHALL DISTRIBUTE THE AMOUNT 29
NECESSARY TO ADMINIS TER THE RETAIL DELIV ERY FEE TO AN ADMINI STRATIVE 30
FEE ACCOUNT . 31
(D) AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER SUBSECTIONS 32
(B) AND (C) OF THIS SECTION , THE COMPTROLLER SHALL DEP OSIT THE BALANCE 33 HOUSE BILL 352 127
OF THE RE VENUE ATTRIBUTABLE T O THE RETAIL DELIVER Y FEE INTO THE 1
TRANSPORTATION TRUST FUND ESTABLISHED UNDE R § 3–216 OF THIS ARTICLE. 2
23–205. 3
(a) (1) Subject to paragraph (2) of this subsection, the Administration and the 4
Secretary shall set the fee to be charged for each vehicle to be inspected and tested by a 5
facility. 6
(2) The fee established under this subsection: 7
(i) [During the period from January 1, 1995 through May 31, 1997, 8
may not exceed $12; and 9
(ii)] During the period [after] FROM May 31, 1997, THROUGH JUNE 10
30, 2025, may not exceed $14; 11
(II) DURING THE PERIOD FRO M JULY 1, 2025, THROUGH JUNE 12
30, 2026, MAY NOT EXCEED $30; AND 13
(III) EXCEPT AS PROVIDED IN PARAGRAPH (4)(III) OF THIS 14
SUBSECTION, DURING THE PERIOD AF TER JULY 1, 2026, SHALL EQUAL AT LEAST 15
THE AMOUNT IN THE IM MEDIATELY PRECEDING FISCAL YEAR ADJUSTED FOR 16
INFLATION IN ACCORDA NCE WITH PARAGRAPH (3) OF THIS SUBSECTION . 17
(3) DURING THE PERIOD AFT ER JUNE 30, 2026, THE FEE 18
ESTABLISHED UNDER TH IS SUBSECTION SHALL EQUAL AT LEAST THE AMOUNT IN 19
THE IMMEDIATELY PREC EDING FISCAL YEAR AD JUSTED FOR INFLATION IN 20
ACCORDANCE WITH PARA GRAPH (4) OF THIS SUBSECTION . 21
(4) (I) THE INFLATION ADJUSTM ENT SHALL EQUAL THE PRODUCT 22
OF MULTIPLYING THE A MOUNT OF FUNDING IN THE IMMEDIATELY PREC EDING 23
FISCAL YEAR BY THE P ERCENTAGE INCREASE I N THE CONSUMER PRICE INDEX FOR 24
ALL URBAN CONSUMERS. 25
(II) THE PERCENTAGE INCREA SE IN THE CONSUMER PRICE 26
INDEX FOR ALL URBAN CONSUMERS SHALL BE DE TERMINED BY COMPARIN G THE 27
AVERAGE OF THE INDEX FOR THE 12 MONTHS ENDING APRIL 30 IMMEDIATELY 28
PRECEDING THE FISCAL YEAR FOR WHICH THE F UNDING AMOUNT IS BEI NG 29
CALCULATED TO THE AV ERAGE INDEX FOR THE PRIOR 12 MONTHS. 30
(III) IF THERE IS A DECLINE OR NO GROWTH IN THE CONSUMER 31
PRICE INDEX FOR ALL URBAN CONSUMERS, THE FEE AMOUNT UNDER THIS 32
PARAGRAPH SHALL REMA IN UNCHANGED . 33
128 HOUSE BILL 352
(b) The fee shall be collected in a manner established by the Administration and 1
the Secretary. 2
(c) A specific portion of the fee shall be paid to or retained by the Administration 3
to cover the cost of administration and enforcement of the emissions control program, as 4
provided in the contract between the contractor and the State. 5
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 6
as follows: 7
Article – Tax – General 8
7–309. 9
(a) Notwithstanding an Act of Congress that repeals or reduces the federal credit 10
under § 2011 of the Internal Revenue Code, the provisions of this subtitle in effect before 11
the passage of the Act of Congress shall apply with respect to a decedent who dies after the 12
effective date of the Act of Congress so as to continue the Maryland estate tax in force 13
without reduction in the same manner as if the federal credit had not been repealed or 14
reduced. 15
(b) (1) Except as provided in paragraphs (2) through (9) of this subsection and 16
subsection (c) of this section, after the effective date of an Act of Congress described in 17
subsection (a) of this section, the Maryland estate tax shall be determined using: 18
(i) the federal credit allowable by § 2011 of the Internal Revenue 19
Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of 20
Congress; and 21
(ii) other provisions of federal estate tax law as in effect on the date 22
of the decedent’s death. 23
(2) Except as provided in paragraphs (3) through (9) of this subsection and 24
subsection (c) of this section, if the federal estate tax is not in effect on the date of the 25
decedent’s death, the Maryland estate tax shall be determined using: 26
(i) the federal credit allowable by § 2011 of the Internal Revenue 27
Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of 28
Congress; and 29
(ii) other provisions of federal estate tax law as in effect on the date 30
immediately preceding the effective date of the repeal of the federal estate tax. 31
(3) (i) Notwithstanding any increase in the unified credit allowed 32
against the federal estate tax for decedents dying after 2003, the unified credit used for 33
determining the Maryland estate tax for a decedent may not exceed the applicable credit 34 HOUSE BILL 352 129
amount corresponding to an applicable exclusion amount, within the meaning of § 2010(c) 1
of the Internal Revenue Code, of: 2
1. $1,000,000 for a decedent dying before January 1, 2015; 3
2. $1,500,000 for a decedent dying on or after January 1, 4
2015, but before January 1, 2016; 5
3. $2,000,000 for a decedent dying on or after January 1, 6
2016, but before January 1, 2017; 7
4. $3,000,000 for a decedent dying on or after January 1, 8
2017, but before January 1, 2018; 9
5. $4,000,000 for a decedent dying on or after January 1, 10
2018, but before January 1, 2019; [and] 11
6. $5,000,000 for a decedent dying on or after January 1, 12
2019, BUT BEFORE JULY 1, 2025; AND 13
7. $2,000,000 FOR A DECEDENT DYING ON OR AFTER 14
JULY 1, 2025, plus any deceased spousal unused exclusion amount calculated in 15
accordance with paragraph (9) of this subsection. 16
(ii) The Maryland estate tax shall be determined without regard to 17
any deduction for State death taxes allowed under § 2058 of the Internal Revenue Code. 18
(iii) Unless the federal credit allowable by § 2011 of the Internal 19
Revenue Code is in effect on the date of the decedent’s death, the federal credit used to 20
determine the Maryland estate tax may not exceed 16% of the amount by whic h the 21
decedent’s taxable estate, as defined in § 2051 of the Internal Revenue Code, exceeds: 22
1. $1,000,000 for a decedent dying before January 1, 2015; 23
2. $1,500,000 for a decedent dying on or after January 1, 24
2015, but before January 1, 2016; 25
3. $2,000,000 for a decedent dying on or after January 1, 26
2016, but before January 1, 2017; 27
4. $3,000,000 for a decedent dying on or after January 1, 28
2017, but before January 1, 2018; 29
5. $4,000,000 for a decedent dying on or after January 1, 30
2018, but before January 1, 2019; [and] 31
130 HOUSE BILL 352
6. $5,000,000 for a decedent dying on or after January 1, 1
2019, BUT BEFORE JULY 1, 2025; AND 2
7. $2,000,000 FOR A DECEDENT DYING ON OR AFTER 3
JULY 1, 2025, plus any deceased spousal unused exclusion amount ca lculated in 4
accordance with paragraph (9) of this subsection. 5
(4) (i) With regard to an election to value property as provided in § 2032 6
of the Internal Revenue Code, if a federal estate tax return is not required to be filed: 7
1. an irrevocable election made on a timely filed Maryland 8
estate tax return shall be deemed to be an election as required by § 2032(d) of the Internal 9
Revenue Code; 10
2. the provisions of § 2032(c) of the Internal Revenue Code 11
do not apply; and 12
3. an election may not be made under item 1 of this 13
subparagraph unless that election will decrease: 14
A. the value of the gross estate; and 15
B. the Maryland estate tax due with regard to the transfer of 16
a decedent’s Maryland estate. 17
(ii) An election to value property as provided in § 2032 of the Internal 18
Revenue Code for Maryland estate tax purposes must be the same as the election made for 19
federal estate tax purposes. 20
(5) (i) With regard to an election to treat property as marital deduction 21
qualified terminable interest property in calculating the Maryland estate tax, an 22
irrevocable election made on a timely filed Maryland estate tax return shall be deemed to 23
be an election as required by § 2056(b)(7)(B)(i), (iii), and (v) of the Internal Revenue Code. 24
(ii) An election under this paragraph made on a timely filed 25
Maryland estate tax return shall be recognized for purposes of calculating the Maryland 26
estate tax even if an inconsistent election is made for the same decedent for federal estate 27
tax purposes. 28
(6) (i) For purposes of calculating Maryland estate tax, a decedent shall 29
be deemed to have had a qualifying income interest for life under § 2044(a) of the Internal 30
Revenue Code with regard to any property for which a marital deduction qualified 31
terminable interest property election was made for the decedent’s predeceased spouse on a 32
timely filed Maryland estate tax return under paragraph (5) of this subsection. 33
(ii) For the purpose of apportioning Maryland estate tax under § 34
7–308 of this subtitle, any property as to which a decedent is deemed to have had a 35 HOUSE BILL 352 131
qualifying income interest for life under subparagraph (i) of this paragraph shall be deemed 1
to be included in both the estate and the taxable estate of the decedent. 2
(7) For purposes of calculating Maryland estate tax, amounts allowable 3
under § 2053 or § 2054 of the Internal Revenue Code as a deduction in computing the 4
taxable estate of a decedent may not be allowed as a deduction or as an offset against the 5
sales price of property in determining gain or loss if the amount has been allowed as a 6
deduction in computing the federal taxable income of the estate or of any other person. 7
(8) Notwithstanding any contrary definition of “marriage” and “spouse” 8
under any applicable provision of federal law, for purposes of calculating Maryland estate 9
tax under this subsection, the surviving “spouse” of a decedent shall include any individual 10
to whom, at the time of the decedent’s death, the decedent was lawfully married as 11
determined under the laws of the State. 12
(9) (i) In this paragraph, “deceased spousal unused exclusion amount” 13
means the applicable exclusion amount in effect at the time of the death of the last 14
predeceased spouse of the decedent under paragraph (3) of this subsection reduced by the 15
taxable estate of the last predeceased spouse: 16
1. as reported on a Maryland estate tax return filed with the 17
Comptroller; or 18
2. as reported on a federal estate tax return, if: 19
A. the last predeceased spouse was not a Maryland resident 20
and no property with a Maryland estate tax situs was includible in the gross estate of the 21
last predeceased spouse; or 22
B. the last predeceased spouse died before January 1, 2019, 23
and no Maryland estate tax return was required to be filed with respect to the predeceased 24
spouse’s estate. 25
(ii) The deceased spousal unused exclusion amount may not be taken 26
into account under paragraph (3) of this subsection unless: 27
1. if the last predeceased spouse died on or after January 1, 28
2019, a Maryland estate tax return is timely filed for the last predeceased spouse, on which 29
the deceased spousal unused exclusion amount is calculated and an irrevocable election is 30
made that the deceased spousal unused exclusion amount may be taken into account; or 31
2. if the last predeceased spouse died before January 1, 2019, 32
or was not a Maryland resident and no property with a Maryland estate tax situs was 33
includible in the gross estate of the last predeceased spouse, an election was made under § 34
2010(c) of the Internal Revenue Code on the federal estate tax return of the last 35
predeceased spouse. 36
132 HOUSE BILL 352
(iii) 1. Notwithstanding any other provision of this article, the 1
Comptroller may examine a Maryland estate tax return of a predeceased spouse after the 2
time for assessing a tax under this title has expired under § 13–1101 of this article solely 3
for the purposes of determining the validity of the deceased spousal unused exclusion 4
election and the amount to be taken into account under paragraph (3) of this subsection. 5
2. This subparagraph may not be construed to authorize the 6
assessment of any additional tax with respect to the predeceased spouse’s Maryland estate 7
tax return if the period of limitation under § 13–1101 of this article has expired. 8
10–730. 9
(a) (1) In this section the following words have the meanings indicated. 10
(4) (i) “Film production activity” means: 11
1. the production of a film or video project that is intended 12
for nationwide commercial distribution; and 13
2. for a television series, each season of the television series. 14
(ii) “Film production activity” includes the production of: 15
1. a feature film; 16
2. a television project; 17
3. a commercial; 18
4. a corporate film; 19
5. a music video; 20
6. a digital animation project; 21
7. a documentary; or 22
8. a talk, reality, or game show. 23
(iii) “Film production activity” does not include production of: 24
1. a student film; 25
2. a noncommercial personal video; 26
3. a sports broadcast; 27
HOUSE BILL 352 133
4. a broadcast of a live event; 1
5. a video, computer, or social networking game; 2
6. pornography; 3
7. an infomercial; 4
8. a digital project or an animation project other than a 5
digital animation project; or 6
9. a multimedia project. 7
(7) “Qualified film production entity” means an entity that: 8
(i) is carrying out a film production activity; and 9
(ii) the Secretary determines to be eligible for the tax credit under 10
this section in accordance with subsection (c) of this section. 11
(8) “Secretary” means the Secretary of Commerce. 12
(b) (1) A qualified film production entity may claim a credit against the State 13
income tax for film production activities in the State in an amount equal to the amount 14
stated in the final tax credit certificate approved by the Secretary for film production 15
activities. 16
(2) If the tax credit allowed under this section in any taxable year exceeds 17
the total tax otherwise payable by the qualified film production entity for that taxable year, 18
the qualified film production entity may claim a refund in the amount of the excess. 19
(f) (1) Except as provided in paragraph (2) of this subsection, the Secretary 20
may not issue tax credit certificates for credit amounts in the aggregate totaling more than: 21
(i) for fiscal year 2014, $25,000,000; 22
(ii) for fiscal year 2015, $7,500,000; 23
(iii) for fiscal year 2016, $7,500,000; 24
(iv) for fiscal year 2019, $8,000,000; 25
(v) for fiscal year 2020, $11,000,000; 26
(vi) for fiscal years 2021 through 2023, $12,000,000; 27
(vii) for fiscal year 2024, $15,000,000; 28 134 HOUSE BILL 352
(viii) for fiscal year 2025, $17,500,000; AND 1
(ix) [for fiscal year 2026, $20,000,000; and 2
(x)] for fiscal year [2027] 2026 and each fiscal year thereafter, 3
$12,000,000. 4
(2) If the aggregate credit amounts under the tax credit certificates issued 5
by the Secretary total less than the maximum provided under paragraph (1) of this 6
subsection in any fiscal year, any excess amount may be carried forward and issued under 7
tax credit certificates in a subsequent fiscal year. 8
(3) The Secretary may not issue tax credit certificates for credit amounts 9
totaling more than $10,000,000 in the aggregate for a single film production activity. 10
(4) (i) For fiscal year 2019 and each fiscal year thereafter, the Secretary 11
shall make 10% of the credit amount authorized under paragraph (1) of this subsection 12
available for Maryland small or independent film entities. 13
(ii) If the total amount of credits applied for by Maryland small or 14
independent film entities is less than the amount made available under subparagraph (i) 15
of this paragraph, the Secretary shall make available the unused amount of credits for use 16
by qualified film production entities. 17
10–740. 18
(a) (1) In this section the following words have the meanings indicated. 19
(2) “Commission” means the Maryland Higher Education Commission. 20
(3) “Qualified taxpayer” means an individual who has: 21
(i) incurred at least $20,000 in undergraduate or graduate student 22
loan debt or both; and 23
(ii) has at least $5,000 in outstanding undergraduate or graduate 24
student loan debt or both when submitting an application under subsection (c) of this 25
section. 26
(b) Subject to the limitations of this section, a qualified taxpayer may claim a 27
credit against the State income tax for the taxable year in which the Commission certifies 28
a tax credit under this section. 29
(c) (1) (i) By September 15 of each year, an individual shall submit an 30
application to the Commission for the credit allowed under this section. 31
HOUSE BILL 352 135
(ii) The individual shall submit with the application an assurance 1
that the individual will use any credit approved under this section for the repayment of the 2
individual’s undergraduate or graduate student loan debt or both as soon as practicable. 3
(iii) 1. The total amount of the credit claimed under this section 4
shall be recaptured if the individual does not use the credit approved under this section for 5
the repayment of the individual’s undergraduate or graduate student loan debt or both 6
within 3 years from the close of the taxable year for which the credit is claimed. 7
2. The individual who claimed the credit shall pay the total 8
amount of the credit claimed as taxes payable to the State for the taxable year in which the 9
event requiring recapture of the credit occurs. 10
(2) By December 15 of each year the Commission shall certify to the 11
individual the amount of any tax credit approved by the Commission under this section, 12
not to exceed $5,000. 13
(3) (I) FOR TAX YEAR 2025, THE TOTAL AMOUNT OF TAX CREDITS 14
APPROVED BY THE COMMISSION UNDER THIS SECTION MAY NOT EXCE ED 15
$9,000,000. 16
(II) For any taxable year AFTER 2025, the total amount of tax 17
credits approved by the Commission under this section may not exceed $18,000,000. 18
(4) (i) Except as provided in subparagraph (ii) of this paragraph, the 19
Commission shall reserve $9,000,000 of the tax credits authorized under paragraph (3) of 20
this subsection for the following individuals in the following order of priority: 21
1. State employees who graduated from i nstitutions of 22
higher education in the State where at least 40% of the attendees are eligible to receive 23
federal Pell Grants; and 24
2. all other State employees not described under item 1 of 25
this subparagraph. 26
(ii) If the total amount of tax credits applied for by individuals 27
described under subparagraph (i) of this paragraph is less than $9,000,000 for a taxable 28
year, the Commission may make available the unused amount of credits for use by other 29
qualified taxpayers. 30
(5) To claim the tax credit allowed under this section, an individual shall 31
attach a copy of the Commission’s certification of the approved credit amount to the income 32
tax return. 33
(g) (1) On or before January 1 each year, the Commission shall report to the 34
Governor and, in accordance with § 2–1257 of the State Government Article, the General 35
Assembly on: 36 136 HOUSE BILL 352
[(1)] (I) the number of applicants for the tax credit authorized under this 1
section; 2
[(2)] (II) the number and amounts of tax credits awarded under this 3
section to qualified taxpayers; 4
[(3)] (III) a breakdown of the age, gender, race, income, and counties of 5
residency of qualified taxpayers who receive the credit; and 6
[(4)] (IV) any additional information that the Commission deems relevant. 7
(2) ON OR BEFORE JANUARY 1, 2026, THE COMMISSION SHALL 8
REPORT TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 9
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY RECOMMENDATI ONS FOR 10
CHANGES TO STATUTE O R REGULATIONS THAT W OULD BETTER TARGET T HE 11
ALLOCATION OF TAX CR EDITS UNDER THIS PROGRAM. 12
(i) The tax credit under this section shall be referred to as the Student Loan Debt 13
Relief Tax Credit. 14
10–741. 15
(d) (1) In this subsection, “Reserve Fund” means the More Jobs for 16
Marylanders Tax Credit Reserve Fund established under paragraph (2) of this subsection. 17
(2) (i) There is a More Jobs for Marylanders Tax Credit Reserve Fund 18
that is a special continuing, nonlapsing fund that is not subject to § 7–302 of the State 19
Finance and Procurement Article. 20
(ii) The money in the Reserve Fund shall be invested and reinvested 21
by the Treasurer, and interest and earnings shall be credited to the General Fund. 22
(3) (i) Subject to the limitations of this subsection, the Department 23
shall issue an initial tax credit certificate in an amount equal to a percentage of total wages 24
paid for each qualified position at an eligible project as calculated under subsection (b)(2) 25
of this section. 26
(ii) An initial tax credit certificate issued under this subsection shall 27
state the maximum amount of tax credit for which the qualified business entity is eligible. 28
(iii) 1. Except as otherwise provided in this subparagraph, for 29
any fiscal year, the Department may not issue initial tax credit certificates for credit 30
amounts in the aggregate totaling more than: 31
HOUSE BILL 352 137
A. with respect to qualified business entities provided a 1
certificate under § 6–805 of the Economic Development Article before June 1, 2022, 2
$9,000,000 in a fiscal year; and 3
B. with respect to qualified business entities provided a 4
certificate under § 6–805 of the Economic Development Article on or after June 1, 2022, 5
$5,000,000 in a fiscal year. 6
2. [If] THROUGH FISCAL YEAR 2025, IF the aggregate 7
credit amounts under initial tax credit certificates issued in a fiscal year total less than the 8
maximum provided under subsubparagraph 1 of this subparagraph, any excess amount 9
shall remain in the Reserve Fund. 10
3. FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 11
THEREAFTER , IF THE AGGREGATE CRE DIT AMOUNTS UNDER IN ITIAL TAX CREDIT 12
CERTIFICATES ISSUED IN A FISCA L YEAR TOTAL LESS TH AN THE MAXIMUM 13
PROVIDED UNDER SUBSU BPARAGRAPH 1 OF THIS SUBPARAGRAPH , ANY EXCESS 14
AMOUNT SHALL REVERT TO THE GENERAL FUND OF THE STATE AT THE CLOSE OF 15
THE FISCAL YEAR . 16
[3.] 4. For any fiscal year, if funds are transferred from the 17
Reserve Fund under the authority of any provision of law other than under paragraph (4) 18
of this subsection, the maximum credit amounts in the aggregate for which the Department 19
may issue initial tax credit certificates shall be reduced by the amount transferred. 20
(iv) For fiscal year 2019 and each fiscal year thereafter, the Governor 21
shall include in the annual budget bill an appropriation to the Reserve Fund in an amount 22
that is no less than the amount the Department reports is necessary under subsection (e) 23
of this section to: 24
1. maintain the current level of manufacturing activity in the 25
State; 26
2. attract new manufacturing activity to the State; and 27
3. attract new businesses to and encourage the expansion of 28
existing businesses within opportunity zones in the State. 29
(v) Notwithstanding the provisions of § 7–213 of the State Finance 30
and Procurement Article, the Governor may not reduce an appropriation to the Reserve 31
Fund in the State budget as approved by the General Assembly. 32
(vi) Based on an amount equal to a percentage of the total actual 33
wages paid for each qualified position at an eligible project as calculated under subsection 34
(b)(2) of this section, the Department shall issue a final tax credit certificate to the qualified 35
business entity. 36 138 HOUSE BILL 352
(4) (i) Except as provided in this paragraph, money appropriated to the 1
Reserve Fund shall remain in the Fund. 2
(ii) 1. Within 15 days after the end of each calendar quarter, the 3
Department shall notify the Comptroller as to each final credit certificate issued during the 4
quarter: 5
A. the maximum credit amount stated in the initial tax credit 6
certificate for the qualified business entity; and 7
B. the final certified credit amount for the qualified business 8
entity. 9
2. On notification that a final credit amount has been 10
certified, the Comptroller shall transfer an amount equal to the credit amount stated in the 11
final INITIAL tax credit certificate for the qualified business entity from the Reserve Fund 12
to the General Fund. 13
Article – Tax – Property 14
2–106. 15
(a) Each county shall provide the supervisor of the county with an office in the 16
county seat or in Baltimore City, for the supervisor of Baltimore City. The Department is 17
responsible for providing each supervisor with clerical staff, equipment, and other facilities 18
and assistance that the Department considers necessary and as provided in the State 19
budget. 20
(b) (1) Except as provided in paragraph (2) of this subsection, each county and 21
Baltimore City shall be responsible for reimbursing the State for the costs of administering 22
the Department as follows: 23
(i) [50%] 90% of the costs of real property valuation; 24
(ii) [50%] 90% of the costs of business personal property valuation; 25
and 26
(iii) [50%] 90% of the costs of the Office of Information Technology 27
within the Department, including any funding for departmental projects in the Major 28
Information Technology Development Project Fund established under § 3.5–309 of the 29
State Finance and Procurement Article. 30
(2) For each of fiscal years 2012 and 2013, each county and Baltimore City 31
shall be responsible for reimbursing the State 90% instead of 50% of the costs of 32
administering the Department described in paragraph (1) of this subsection. 33
HOUSE BILL 352 139
(c) Costs under subsection (b) of this section shall be allocated among the counties 1
and Baltimore City as follows: 2
(1) costs under subsection (b)(1)(i) and (iii) of this section will be allocated 3
based on the number of real property accounts of a county or Baltimore City as a percentage 4
of the total number of real property accounts statewide as of July 1 of the preceding fiscal 5
year; and 6
(2) costs under subsection (b)(1)(ii) of this section will be allocated based on 7
the business personal property assessable base of a county or Baltimore City as a 8
percentage of the total business personal property assessable bases statewide as of July 1 9
of the preceding fiscal year. 10
(d) Each county and Baltimore City shall remit a quarterly payment to the 11
Comptroller for 25% of the jurisdiction’s share of costs on the following dates: 12
(1) July 1; 13
(2) October 1; 14
(3) January 1; and 15
(4) April 1. 16
(e) The Comptroller may withhold a portion of a local income tax distribution of 17
a county or Baltimore City that fails to make timely payment in accordance with this 18
section. 19
9–103. 20
(a) (1) In this section the following words have the meanings indicated. 21
(2) “Base year” means the taxable year immediately before the taxable year 22
in which a property tax credit under this section is to be granted. 23
(3) (i) “Base year value” means the value of the property used to 24
determine the assessment on which the property tax on real property was imposed for the 25
base year. 26
(ii) “Base year value” does not include any new real property that 27
was first assessed in the base year. 28
(4) (i) “Business entity” means a person who operates or conducts a 29
trade or business. 30
(ii) “Business entity” includes a person who owns, operates, 31
develops, constructs, or rehabilitates real property, if the real property: 32 140 HOUSE BILL 352
1. is intended for use primarily as single or multifamily 1
residential property located in the enterprise zone; and 2
2. is partially devoted to a nonresidential use. 3
(5) (i) “Eligible assessment” means the difference between the base 4
year value and the actual value as determined by the Department for the applicable taxable 5
year in which the tax credit under this section is to be granted. 6
(ii) For a business entity that is located on land or within 7
improvements owned by the federal, State, county, or municipal government, “eligible 8
assessment” means the difference between the base year value and the actual value 9
reduced by the value of any property entitled to an exemption under Title 7 of this article 10
as determined by the Department for the applicable taxable year in which the tax credit 11
under this section is to be granted. 12
(6) (i) “Qualified property” means real property that is: 13
1. not used for residential purposes; 14
2. used in a trade or business by a business entity that meets 15
the requirements of § 5–707 of the Economic Development Article; and 16
3. located in an enterprise zone that is designated under 17
Title 5, Subtitle 7 of the Economic Development Article. 18
(ii) “Qualified property” includes personal property on real property 19
that is located in a focus area as defined in § 5–701 of the Economic Development Article. 20
(e) (1) A tax credit under this section is available to a qualified property for no 21
more than 10 consecutive years or, in the case of newly constructed qualified property that 22
provides both office and retail space and became eligible for the credit under this section 23
on or after January 1, 2019, but before January 1, 2022, no more than 13 consecutive years, 24
beginning with: 25
(i) the taxable year following the calendar year in which the real 26
property initially becomes a qualified property; or 27
(ii) the taxable year in which the real property initially becomes a 28
qualified property, subject to the approval of the appropriate local governing body and the 29
Secretary of Commerce. 30
(2) Even if the designation of an enterprise zone expires, the tax credit 31
under this section continues to be available to a qualified property. 32
HOUSE BILL 352 141
(3) Notwithstanding § 5–707(d) of the Economic Development Article but 1
subject to § 5–707(b) and (c) of the Economic Development Article, a business entity 2
operating in an enterprise zone when the designation of the enterprise zone expires may 3
claim the credits allowed under this section for real property that: 4
(i) the business owns, operates, develops, constructs, or 5
rehabilitates within 5 years after the date the designation of the enterprise zone expired; 6
and 7
(ii) otherwise qualifies for the credits allowed under this section. 8
(4) State property tax imposed on real property is not affected by this 9
section. 10
(5) NO NEW PROPERTIES MAY QUALIFY OR BE AWARDE D TAX CREDITS 11
AFTER JUNE 30, 2025. 12
(f) When an enterprise zone is designated by the Secretary of Commerce, the 13
appropriate governing body shall certify to the Department of Assessments and Taxation: 14
(1) the real properties in the enterprise zone that are qualified properties 15
for each taxable year for which the property tax credit under this section is to be granted; 16
and 17
(2) the date that the real properties became qualified properties. 18
(3) NO PROPERTIES MAY BE DESIGNATED AS QUALIF IED PROPERTIES 19
AFTER JUNE 30, 2025. 20
Article – Transportation 21
2–802. 22
(b) (1) Subject to paragraph (2) of this subsection, when a deposit or payment 23
is made in accordance with § 9–120(b)(1)(xi) of the State Government Article into the Bus 24
Rapid Transit Fund established under § 2–802.1 of this subtitle, and there is only one 25
eligible grantee, then the Department shall award a grant to the eligible grantee equal to 26
the amount distributed to the Department under § 9–120(b)(1)(xi) of the State Government 27
Article. 28
(2) (i) If there are two eligible grantees, and one eligible grantee is 29
Montgomery County, the Department shall distribute [$20,000,000] $25,000,000 to 30
Montgomery County and the remaining amount of the deposit or payment under § 31
9–120(b)(1)(xi) of the State Government Article to the remaining eligible grantee. 32
3–216. 33
142 HOUSE BILL 352
(e) (1) Except as otherwise provided in this subsection, this section is effective 1
notwithstanding any other provision of law. 2
(2) Nothing in this section may adversely affect in any way the security of 3
any of the following bonds while they are outstanding and unpaid: 4
(i) State highway construction bonds, second issue; 5
(ii) State highway construction bonds, third issue; 6
(iii) County highway construction bonds; [or] 7
(iv) County highway construction bonds, second issue; OR 8
(V) BUS RAPID TRANSIT BON DS ISSUED WITH FUNDI NG 9
COMMITMENTS FROM THE BUS RAPID TRANSIT FUND ESTABLISHED UNDE R § 10
2–802.1 OF THIS ARTICLE . 11
(3) It is the intent of the General Assembly that, as long as any of the bonds 12
listed in paragraph (2) of this subsection are outstanding and unpaid: 13
(i) The sinking fund requirements established for the payment of 14
the principal of and interest on those bonds shall remain unchanged, as if this section had 15
not been enacted; and 16
(ii) The taxes and revenues pledged to the payment of the principal 17
of and interest on those bonds as they become due and payable may not be repealed, 18
diminished, or applied to any other purpose until: 19
1. The bonds and the interest on them have become due and 20
fully paid; or 21
2. Adequate and complete provision for payment of the 22
principal and interest has been made. 23
8–402. 24
(a) There is a Gasoline and Motor Vehicle Revenue Account in the Transportation 25
Trust Fund. 26
(b) All revenues collected from the following, after deductions provided by law, 27
shall be credited to the Gasoline and Motor Vehicle Revenue Account: 28
(1) All of the motor vehicle fuel tax; 29
HOUSE BILL 352 143
(2) Except as otherwise provided by law, two–thirds of the REVENUE 1
FROM THE vehicle titling tax, EXCLUDING REVENUE AT TRIBUTABLE TO : 2
(I) A VEHICLE TITLING TAX RATE IN EXCESS OF 6%; OR 3
(II) THE VEHICLE TITLING T AX IMPOSED ON RE NTAL VEHICLES 4
UNDER § 13–809(C)(1)(II) OF THIS ARTICLE ; 5
(3) Except for revenues collected under Title 13, Subtitle 9, Parts III and 6
IV of this article, vehicle registration fees; 7
(4) The revenue disbursed to this Account under § 2–614 of the Tax – 8
General Article; and 9
(5) 80% of the funds distributed on short–term vehicle rentals under § 10
2–1302.1 of the Tax – General Article to the Transportation Trust Fund from the sales and 11
use tax. 12
(c) For fiscal year 2020 and each fiscal year thereafter, revenue credited to the 13
Account shall be used as provided in § 3–216 of this article. 14
13–802. 15
(a) Except as provided in subsection (b) of this section and § 13–805 of this 16
subtitle, the fee for each certificate of title issued under this title is [$100] $200. 17
(b) (1) The fee for each certificate of title issued for a rental vehicle is [$50] 18
$100. 19
(2) The fee for each certificate of title issued for an off–highway 20
recreational vehicle is [$35] $70. 21
(3) The fee for each certificate of title issued for a motor scooter or a moped 22
is [$20] $40. 23
(4) The fee for each certificate of title issued for a trailer with a gross 24
vehicle weight of 3,000 pounds or less is [$50] $100 if: 25
(i) The trailer is transferred to: 26
1. A spouse, child, grandchild, parent, sibling, grandparent, 27
father–in–law, mother–in–law, son–in–law, or daughter–in–law of the transferor; or 28
2. A niece or nephew of the transferor if the transferor is at 29
least 65 years of age at the time of the transfer; and 30
144 HOUSE BILL 352
(ii) No money or other valuable consideration is involved in the 1
transfer. 2
(5) On the death of a joint owner of a vehicle, the Administration may not 3
charge a fee for a new certificate of title issued for the vehicle to another joint owner who 4
is the surviving spouse. 5
(6) On the death of a sole owner of a vehicle, the Administration may not 6
charge a fee for a new certificate of title issued for the vehicle to a surviving spouse if 7
ownership of the vehicle is transferred in accordance with § 13–114 of this title. 8
(c) The Administration may not charge a fee for a certificate of title issued for a 9
vehicle that is transferred to a trust or from a trust to one or more beneficiaries in 10
accordance with § 14.5–1001 of the Estates and Trusts Article. 11
13–809. 12
(c) (1) Except as provided in subsection (b)(2) of this section, the tax imposed 13
by this section is [6 percent]: 14
(I) EXCEPT AS PROVIDED IN ITEM (II) OF THIS PARAGRAPH , 15
6.8% of the fair market value of the vehicle; OR 16
(II) FOR A RENTAL VEHICLE , 3.5% OF THE FAIR MARKET V ALUE 17
OF THE VEHICLE . 18
(2) If the vehicle formerly was a vehicle exempt from the tax imposed by 19
this section, the tax shall be reduced by any amount previously paid by the present owner 20
as a sales and use tax on the vehicle under Title 11 of the Tax – General Article. 21
(3) (i) If the vehicle was formerly titled and registered in another state 22
and the present owner has paid a sales or excise tax to that state at a rate less than that 23
imposed by this State, then the tax imposed shall apply but at a rate measured by the 24
difference only between the tax rate paid to the other state and the tax rate imposed by this 25
section, if the present owner has not been a Maryland resident for more than 60 days. 26
(ii) If the vehicle was formerly titled and registered in another state 27
and the present owner requests to transfer the vehicle in accordance with § 13–810(c)(1) of 28
this subtitle, the Administration shall change or correct the names contained in the 29
certificate of title: 30
1. At the time the excise tax that is credited or imposed 31
under this section is paid and a new title is issued; and 32
2. Without issuing multiple certificates of title or charging 33
additional fees. 34
HOUSE BILL 352 145
(iii) Except as provided in subsection (b)(2) of this section, the 1
minimum tax imposed under this section shall be $100. 2
13–810. 3
(a) On issuance in this State of an original or subsequent certificate of title for a 4
vehicle, the vehicle is exempt from the excise tax imposed by this part, if it is: 5
(24) A vehicle acquired by a religious, charitable, or volunteer organization 6
exempt from taxation under § 501(c) of the Internal Revenue Code, the Department of 7
Human Services, or a local department of social services for the purpose of transferring the 8
vehicle to a Family Investment Program recipient or an individual certified by the 9
Department of Human Services or a local department of social services as eligible for the 10
transfer; OR 11
[(25) A rental vehicle; or] 12
[(26)] (25) A vehicle that is transferred to a trust or from a trust to one or 13
more beneficiaries in accordance with § 14.5–1001 of the Estates and Trusts Article. 14
13–936. 15
(a) In this section, “historic motor vehicle” means a motor vehicle, including a 16
passenger vehicle, motorcycle, or truck that: 17
(1) Is [at least 20 years old] A MODEL YEAR OF 1999 OR EARLIER; 18
(2) Has not been substantially altered from the manufacturer’s original 19
design; and 20
(3) Meets criteria contained in regulations adopted by the Administration. 21
(b) In this section, “historic motor vehicle” does not include a vehicle that has been 22
remanufactured or reconstructed as a replica of an original vehicle. 23
(c) If registered with the Administration under this section, every historic motor 24
vehicle is a Class L (historic) vehicle. 25
(d) Except as provided in subsection (i) of this section, for each Class L (historic) 26
vehicle, the annual registration fee is: 27
(1) On or after July 1, 2024, but before July 1, 2025, $45.50; and 28
(2) On or after July 1, 2025, $55.50. 29
146 HOUSE BILL 352
(e) In applying for registration of a historic motor vehicle under this section, the 1
owner of the vehicle shall submit with the application a certification that the vehicle for 2
which the application is made: 3
(1) Will be maintained for use in exhibitions, club activities, parades, tours, 4
and occasional transportation; and 5
(2) Will not be used: 6
(i) For general daily transportation; 7
(ii) Primarily for the transportation of passengers or property on 8
highways; 9
(iii) For employment; 10
(iv) For transportation to and from employment or school; or 11
(v) For commercial purposes. 12
(f) Except as provided in § 13–936.1 of this subtitle, on registration of a vehicle 13
under this section, the Administration shall issue a special, historic motor vehicle 14
registration plate of the size and design that the Administration determines. 15
(g) Unless the presence of the equipment was specifically required by a statute of 16
this State as a condition of sale when the vehicle was manufactured, the presence of any 17
specific equipment is not required for the operation of a vehicle registered under this 18
section. 19
(h) (1) A vehicle with a model year of 1985 or earlier registered under this 20
section is exempt from any statute that requires vehicle inspections. 21
(2) A vehicle registered under this section is exempt from any statute that 22
requires the use and inspection of emission controls. 23
(i) (1) For a motor vehicle manufactured at least 60 years prior to the current 24
model year, there is a onetime registration fee of $50.00. 25
(2) Registration of a motor vehicle manufactured under this subsection is 26
not transferable to a subsequent owner. 27
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 28
as follows: 29
Article – Tax – General 30
2–605.3. 31 HOUSE BILL 352 147
AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–604, 2–605, 1
2–605.1, AND 2–605.2 OF THIS SUBTITLE , FROM THE REMAINING I NCOME TAX 2
REVENUE FROM INDIVID UALS, THE COMPTROLLER SHALL DIS TRIBUTE 37.5% OF 3
THE INCOME TAX REVEN UE ATTRIBUTABLE TO T HE TAX IMPOSED UNDER § 4
10–105(A)(3) OF THIS ARTICLE TO T HE TRANSPORTATION TRUST FUND. 5
2–606. 6
(a) After making the distributions required under §§ 2–604[, 2–605, and 2–605.1] 7
THROUGH 2–605.3 of this subtitle, from the remaining income tax revenue from 8
individuals, the Comptroller shall distribute to an unallocated individual revenue account 9
the income tax revenue: 10
(1) with respect to which an income tax return is not filed; and 11
(2) that is attributable to: 12
(i) income tax withheld from salary, wages, or other compensation 13
for personal services under Title 10 of this article; or 14
(ii) estimated income tax payments by individuals. 15
10–104. 16
(A) The income tax does not apply to the income of: 17
(1) a common trust fund, as defined in § 3–501(b) of the Financial 18
Institutions Article; 19
(2) except as provided in §§ 10–101(e)(3) of this subtitle and 10–304(2) of 20
this title, an organization that is exempt from taxation under § 408(e)(1) or § 501 of the 21
Internal Revenue Code; 22
(3) a financial institution that is subject to the financial institution 23
franchise tax; 24
(4) [a person subject to taxation under Title 6 of the Insurance Article; 25
(5)] except as provided in § 10–102.1 of this subtitle, a partnership, as 26
defined in § 761 of the Internal Revenue Code; 27
[(6)] (5) except as provided in § 10–102.1 of this subtitle and § 10–304(3) 28
of this title, an S corporation; 29
148 HOUSE BILL 352
[(7)] (6) except as provided in § 10–304(4) of this title, an investment 1
conduit or a special exempt entity; or 2
[(8)] (7) except as provided in § 10–102.1 of this subtitle, a limited 3
liability company as defined under Title 4A of the Corporations and Associations Article to 4
the extent that the company is taxable as a partnership, as defined in § 761 of the Internal 5
Revenue Code. 6
(B) THE INCOME TAX DOES N OT APPLY TO INCOME T HAT IS SUBJECT TO 7
TAXATION UNDER TITLE 6 OF THE INSURANCE ARTICLE. 8
10–105. 9
(a) (1) For an individual other than an individual described in paragraph (2) 10
of this subsection, the State income tax rate is: 11
(i) [2%] 4.7% of Maryland taxable income of $1 through [$1,000] 12
$100,000; 13
(ii) [3% of Maryland taxable income of $1,001 through $2,000; 14
(iii) 4% of Maryland taxable income of $2,001 through $3,000; 15
(iv) 4.75% of Maryland taxable income of $3,001 through $100,000; 16
(v)] 5% of Maryland taxable income of $100,001 through $125,000; 17
[(vi)] (III) 5.25% of Maryland taxable income of $125,001 through 18
$150,000; 19
[(vii)] (IV) 5.5% of Maryland taxable income of $150,001 through 20
$250,000; [and 21
(viii)] (V) 5.75% of Maryland taxable income [in excess of $250,000] 22
OF $250,001 THROUGH $500,000; 23
(VI) (IX) 6.25% OF MARYLAND TAXABLE INCO ME OF $500,001 24
THROUGH $1,000,000; AND 25
(VII) (X) 6.50% OF MARYLAND TAXABLE INCO ME IN EXCESS OF 26
$1,000,000. 27
(2) For spouses filing a joint return or for a surviving spouse or head of 28
household as defined in § 2 of the Internal Revenue Code, the State income tax rate is: 29
HOUSE BILL 352 149
(i) [2%] 4.7% of Maryland taxable income of $1 through [$1,000] 1
$150,000; 2
(ii) [3% of Maryland taxable income of $1,001 through $2,000; 3
(iii) 4% of Maryland taxable income of $2,001 through $3,000; 4
(iv) 4.75% of Maryland taxable income of $3,001 through $150,000; 5
(v)] 5% of Maryland taxable income of $150,001 through $175,000; 6
[(vi)] (III) 5.25% of Maryland taxable income of $175,001 through 7
$225,000; 8
[(vii)] (IV) 5.5% of Maryland taxable income of $225,001 through 9
$300,000; [and 10
(viii)] (V) 5.75% of Maryland taxable income [in excess of $300,000] 11
OF $300,001 THROUGH $600,000; 12
(VI) (IX) 6.25% OF MARYLAND TAXABLE I NCOME OF $600,001 13
THROUGH $1,200,000; AND 14
(VII) (X) 6.50% OF MARYLAND TAXABLE INCO ME IN EXCESS OF 15
$1,200,000. 16
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 17
PARAGRAPH , IF THE MARYLAND TAXABLE INCO ME OF AN INDIVIDUAL DESCRIBED 18
IN PARAGRAPH (1) OR (2) OF THIS SUBSECTION I NCLUDES ANY AMOUNT O F NET 19
CAPITAL GAIN, AS DEFINED AND DETER MINED UNDER THE INTERNAL REVENUE 20
CODE, THE STATE INCOME TAX FOR THE INDIVIDUAL IS TH E SUM OF: 21
1. THE RATES SPECIFIED IN PARAGRAPH (1) OR (2) OF 22
THIS SUBSECTION APPLIED TO MARYLAND TAXABLE INCO ME; AND 23
2. AN ADDITIONAL 1% 2% OF THE AMOUNT OF NET 24
CAPITAL GAIN INCLUDE D IN THE INDIVIDUAL ’S MARYLAND TAXABLE INCO ME. 25
(II) TO THE EXTENT INCLUDE D IN CALCULATING NET CAPITAL 26
GAIN FOR FEDERAL INC OME TAX PURPOSES , ANY AMOUNT OF CAPITAL GAIN FROM 27
THE SALE OR EXCHANGE OF THE FOLLOWING ASS ETS IS NOT SUBJECT T O THE 28
ADDITIONAL 1% 2% TAX RATE SPECIFIED I N SUBPARAGRAPH (I)2 OF THIS 29
PARAGRAPH : 30
150 HOUSE BILL 352
1. ANY RESIDENTIAL DWEL LING SOLD FOR LESS T HAN 1
$1,500,000 THAT IS THE INDIVIDUAL’S PRIMARY RESIDENCE , INCLUDING THE LAND 2
ON WHICH THE DWELLIN G IS LOCATED AND ANY ACCESSORY DWELLING U NIT 3
ASSOCIATED WITH THE RESIDENCE, IF THE DWELLING IS A SINGLE–FAMILY HOME , A 4
TOWN HOUSE , A ROW HOME , A RESIDENTIAL CONDOM INIUM UNIT, OR A 5
RESIDENTIAL COOPERATIVE U NIT; 6
2. ASSETS HELD IN: 7
A. A CASH OR DEFERRED A RRANGEMENT PLAN UNDE R § 8
401(K) OF THE INTERNAL REVENUE CODE; 9
B. A TAX–SHELTERED ANNUITY OR CUSTODIAL ACCOUNT 10
UNDER § 403(B) OF THE INTERNAL REVENUE CODE; 11
C. A DEFERRED COMPENSATION PLAN UN DER § 457(B) 12
OF THE INTERNAL REVENUE CODE; 13
D. AN INDIVIDUAL RETIRE MENT ACCOUNT OR 14
INDIVIDUAL RETIREMEN T ANNUITY UNDER § 408 OF THE INTERNAL REVENUE 15
CODE; 16
E. A ROTH INDIVIDUAL RETIR EMENT ACCOUNT UNDER § 17
408A OF THE INTERNAL REVENUE CODE; OR 18
F. A DEFINED CONTRIBUTI ON PLAN, A DEFINED BENEFIT 19
PLAN, OR A SIMILAR RETIREM ENT SAVINGS PLAN ; 20
3. CATTLE, HORSES, OR BREEDING LIVESTOC K HELD 21
FOR MORE THAN 12 MONTHS IF, FOR THE TAXABLE YEAR OF THE SALE OR 22
EXCHANGE, MORE THAN 50% OF THE INDIVIDUAL ’S GROSS INCOME FOR T HE 23
TAXABLE YEAR , INCLUDING INCOME FRO M THE SALE OR EXCHAN GE OF CAPITAL 24
ASSETS, IS FROM FARMING OR R ANCHING; 25
4. LAND THAT IS SUBJECT TO A CONSERVATION , 26
AGRICULTURAL , OR FOREST PRESERVATI ON EASEMENT OR THAT WILL BE SUBJECT 27
TO A CONSERVATION , AGRICULTURAL , OR FOREST PRESERVATI ON EASEMENT ON 28
THE SALE OR EXCHANGE OF THE LAND; 29
5. PROPERTY USED IN A T RADE OR BUSINESS , THE COST 30
OF WHICH IS DEDUCTIB LE UNDER § 179 OF THE INTERNAL REVENUE CODE; OR 31
6. AFFORDABLE HOUSI NG OWNED BY A NONPRO FIT 32
ORGANIZATION . 33 HOUSE BILL 352 151
(4) THE PROVISIONS OF PAR AGRAPH (3) OF THIS SUBSECTION S HALL 1
APPLY FOR TAXABLE YEARS 2025 THROUGH 2028 FOR INDIVIDUALS DESC RIBED IN 2
PARAGRAPH (1) OR (2) OF THIS SUBSECTION W ITH A FEDERAL ADJUST ED GROSS 3
INCOME IN EXCESS OF $350,000. 4
(b) The State income tax rate for a [corporation is 8.25% of Maryland taxable 5
income] CORPORATION ’S MARYLAND TAXABLE INCO ME IS: 6
(1) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2024, 7
BUT BEFORE JANUARY 1, 2027, 8.25%; 8
(2) FOR A TAXABLE YEAR BEGIN NING AFTER DECEMBER 31, 2026, 9
BUT BEFORE JANUARY 1, 2028, 8.12%; AND 10
(3) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2027, 11
7.99%. 12
10–106. 13
(a) (1) Each county shall set, by ordinance or resolution, a county income tax 14
equal to at least 2.25% but not more than [3.20%] 3.30% of an individual’s Maryland 15
taxable income for a taxable year beginning after December 31, 2001. 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
152 HOUSE BILL 352
(ii) may not exceed $2,250] IS $5,600 $3,350. 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 $6,700. 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 $6,700. 8
[(d)] (B) (C) (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) (B) of this section shall be increased by an amount equal to the product 11
of multiplying the [minimum and maximum] standard deduction [limitation] amount by 12
the 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 SUBJECT TO SUBSECTION (C) OF THIS SECTION , AN individual who 24
elects to itemize deductions is allowed as a deduction the sum of the individual’s federal 25
itemized deductions: 26
(1) limited and reduced as required under the Internal Revenue Code; 27
(2) further reduced by any amount deducted under § 170 of the Internal 28
Revenue Code for contributions of a preservation or conservation easement for which a 29
credit is claimed under § 10–723 of this title; and 30
HOUSE BILL 352 153
(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
(C) (1) IN THIS SUBSECTION , “APPLICABLE AMOUNT ” MEANS: 4
(I) $100,000 FOR A MARRIED INDIVI DUAL FILING SEPARATE LY; 5
AND 6
(II) $200,000 FOR ALL OTHER FILERS . 7
(2) THIS SUBSECTION DOES NOT APPLY TO A FIDUC IARY. 8
(3) IN THE CASE OF AN IND IVIDUAL WHOSE FEDERA L ADJUSTED 9
GROSS INCOME EXCEEDS THE APPLICABLE AMOUN T, THE AMOUNT OF ITEMIZ ED 10
DEDUCTIONS OTHERWISE ALLOWABLE FOR A TAXA BLE YEAR SHALL BE RE DUCED BY 11
7.5% OF THE EXCESS OF THE FEDERAL ADJUSTED GRO SS INCOME OVER T HE 12
APPLICABLE AMOUNT . 13
(4) THIS SUBSECTION SHALL BE APPLIED AFTER THE APPLICATION 14
OF ANY OTHER LIMITAT ION ON THE ALLOWANCE OF ANY ITEMIZED DEDU CTION. 15
10–219. 16
(a) A nonresident may claim and shall include only the part attributable to 17
Maryland, as determined under this section, of: 18
(1) the subtractions from federal adjusted gross income under § 10–208 of 19
this subtitle; 20
(2) the deduction for exemptions under § 10–211 or § 10–212 of this 21
subtitle; and 22
(3) [(i)] the standard deduction under § 10–217 of this subtitle[; or 23
(ii) itemized deductions under § 10–218 of this subtitle]. 24
(b) Unless the Comptroller requires or allows another method to compute the 25
items listed in subsection (a) of this section, a nonresident shall prorate the items using a 26
fraction: 27
(1) the numerator of which is the Maryland adjusted gross income of the 28
nonresident; and 29
(2) the denominator of which is the federal adjusted gross income of the 30
nonresident. 31 154 HOUSE BILL 352
10–220. 1
(a) An individual who is a resident of the State for only a part of the taxable year 2
may claim and shall include only the part attributable to Maryland, as determined under 3
this section, of: 4
(1) the additions to federal adjusted gross income under § 10–204 of this 5
subtitle; 6
(2) the subtractions from federal adjusted gross income under §§ 10–207 7
through 10–209 of this subtitle; 8
(3) the deduction for exemptions under § 10–211 or § 10–212 of this 9
subtitle; and 10
(4) [(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, an individual who is a resident for only a part 14
of the taxable year shall prorate the items using a fraction: 15
(1) the numerator of which is the number of months in which the individual 16
was a resident; and 17
(2) the denominator of which is 12. 18
(c) An individual who is a resident for a period of more than 15 days in a month 19
is deemed to be a resident for the full month. 20
10–751. 21
(a) (1) In this section the following words have the meanings indicated. 22
(2) “Qualified child” means a dependent of a taxpayer, if the dependent: 23
(i) is a dependent for purposes of § 152 of the Internal Revenue Code 24
IN EFFECT ON DECEMBER 31, 2024; and 25
(ii) 1. is under the age of 6 years; or 26
2. A. is under the age of 17 years; and 27
B. is a child with a disability, as defined under § 8–401 of the 28
Education Article. 29 HOUSE BILL 352 155
(3) “Taxpayer” means: 1
(i) an individual filing an income tax return; or 2
(ii) a married couple filing a joint income tax return. 3
(b) A taxpayer who is a resident and has federal adjusted gross income [for the 4
taxable year of $15,000 or less may claim a credit against the State income tax for each 5
qualified child in an amount equal to $500] LOWER THAN THE THRES HOLD AMOUNT OF 6
$15,000 MAY CLAIM A CREDIT A GAINST THE STATE INCOME TAX FOR EACH 7
QUALIFIED CHILD IN A N AMOUNT EQUAL TO $500. 8
(C) THE AMOUNT OF THE CRE DIT SHALL BE REDUCED BY $50 FOR EACH 9
$1,000, OR FRACTION THEREOF , BY WHICH THE TAXPAYE R’S FEDERAL ADJUSTED 10
GROSS INCOME EXCEEDS THE THRESHOLD AMOUNT , EXCEPT THAT THE REDU CTION 11
CANNOT REDUCE THE CR EDIT BELOW ZERO . 12
[(c)] (D) If the credit allowed under this section in any taxable year exceeds the 13
State income tax for that taxable year, the taxpayer may claim a refund in the amount of 14
the excess. 15
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 16
as follows: 17
Article – Tax – General 18
2–1302.2. 19
After making the distributions required under §§ 2–1301 through 2–1302.1 of this 20
subtitle, of the sales and use tax collected under § 11–104(k) of this article from the sale of 21
cannabis, as defined in § 1–101 of the Alcoholic Beverages and Cannabis Article, the 22
Comptroller quarterly shall distribute: 23
(1) 60% 75% OF THE REVENUES AS F OLLOWS: 24
[(1)] (I) to the Cannabis Regulation and Enforcement Fund, established 25
under § 36–206 of the Alcoholic Beverages and Cannabis Article, an amount necessary to 26
defray the entire cost of the operations and administrative expenses of the Maryland 27
Cannabis Administration established under Title 36 of the Alcoholic Beverages and 28
Cannabis Article; 29
[(2)] (II) after making the distribution required under item [(1)] (I) of this 30
[section] ITEM: 31
156 HOUSE BILL 352
[(i)] 1. 35% to the Community Reinvestment and Repair Fund 1
under § 1–322 of the Alcoholic Beverages and Cannabis Article for fiscal years 2024 through 2
2033; 3
[(ii)] 2. 5% to counties, which shall be allocated to each county 4
based on the percentage of revenue collected from that county, except that a county shall 5
distribute to a municipality located in the county 50% of the allocation received under this 6
item that is attributable to the sales and use tax revenue generated by a dispensary located 7
in that municipality; 8
[(iii)] 3. 5% to the Cannabis Public Health Fund established under 9
§ 13–4505 of the Health – General Article; and 10
[(iv)] 4. for fiscal years 2024 through 2028, 5% to the Cannabis 11
Business Assistance Fund established under § 5–1901 of the Economic Development 12
Article; and 13
[(3)] (III) any balance remaining after the distributions required under 14
items [(1) and (2)] (I) AND (II) of this [section] ITEM to the General Fund of the State; AND 15
(2) 40% 25% OF THE REVENUE TO THE GENERAL FUND OF THE 16
STATE. 17
2–1302.5. 18
AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–1301 THROUGH 19
2–1302.4 OF THIS SUBTITLE , OF THE SALES AND USE TAX COLLECTED UNDER § 20
11–104(L) OF THIS ARTICLE, THE COMPTROLLER SHALL DIS TRIBUTE THE REVENUE 21
TO THE GENERAL FUND OF THE STATE. 22
2–1303. 23
After making the distributions required under §§ 2–1301 through [2–1302.4] 24
2–1302.5 of this subtitle, the Comptroller shall pay: 25
(1) revenues from the hotel surcharge into the Dorchester County 26
Economic Development Fund established under § 10–130 of the Economic Development 27
Article; 28
(2) to the Blueprint for Maryland’s Future Fund established under § 5–206 29
of the Education Article, the following percentage of the remaining sales and use tax 30
revenues: 31
(i) for fiscal year 2023, 9.2%; 32
(ii) for fiscal year 2024, 11.0%; 33 HOUSE BILL 352 157
(iii) for fiscal year 2025, 11.3%; 1
(iv) for fiscal year 2026, 11.7%; and 2
(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 3
(3) the remaining sales and use tax revenue into the General Fund of the 4
State. 5
11–101. 6
(a) In this title the following words have the meanings indicated. 7
(C–12) “NAICS” MEANS THE NORTH AMERICAN INDUSTRIAL 8
CLASSIFICATION SYSTEM, UNITED STATES MANUAL, 2022 EDITION, PUBLISHED BY 9
THE UNITED STATES OFFICE OF MANAGEMENT AND BUDGET. 10
[(c–12)] (C–13) “Permanent” means perpetual or for an indefinite or unspecified 11
length of time. 12
(l) (1) “Taxable price” means the value, in money, of the consideration of any 13
kind that is paid, delivered, payable, or deliverable by a buyer to a vendor in the 14
consummation and complete performance of a sale without deduction for any expense or 15
cost, including the cost of: 16
(i) any labor or service rendered; 17
(ii) any material used; or 18
(iii) any property, digital code, or digital product sold. 19
(m) “Taxable service” means: 20
(1) fabrication, printing, or production of tangible personal property or a 21
digital product by special order; 22
(2) commercial cleaning or laundering of textiles for a buyer who is engaged 23
in a business that requires the recurring service of commercial cleaning or laundering of 24
the textiles; 25
(3) cleaning of a commercial or industrial building; 26
(4) cellular telephone or other mobile telecommunications service; 27
(5) “900”, “976”, “915”, and other “900”–type telecommunications service; 28
158 HOUSE BILL 352
(6) custom calling service provided in connection with basic telephone 1
service; 2
(7) a telephone answering service; 3
(8) pay per view television service; 4
(9) credit reporting; 5
(10) a security service, including: 6
(i) a detective, guard, or armored car service; and 7
(ii) a security systems service; 8
(11) a transportation service for transmission, distribution, or delivery of 9
electricity or natural gas, if the sale or use of the electricity or natural gas is subject to the 10
sales and use tax; 11
(12) a prepaid telephone calling arrangement; [or] 12
(13) the privilege given to an individual under § 4–1102 of the Alcoholic 13
Beverages and Cannabis Article to consume wine that is not purchased from or provided 14
by a restaurant, club, or hotel; 15
(14) A DATA OR INFORMATIO N TECHNOLOGY SERVICE DESCRIBED 16
UNDER NAICS SECTOR 518, 519, OR 5415; 17
(15) A SYSTEM SOFTWARE OR APPLICATION SOFTWARE PUBLISHING 18
SERVICE DESCRIBED UN DER NAICS SECTOR 5132; OR 19
(16) THE LICENSING OF MED IA OR SOFTWARE RIGHT S AND OTHER 20
INTELLECTUAL PROPERT Y, INCLUDING: 21
(I) LICENSING OF RIGHTS TO PRODUCE AND DISTR IBUTE 22
COMPUTER SOFTWARE PROTE CTED BY COPYRIGHT ; 23
(II) LICENSING OF RIGHTS TO USE INTELLECTUAL PROPERTY, 24
INCLUDING INTELLECTU AL PROPERTY PROTECTE D BY TRADEMARK OR CO PYRIGHT; 25
(III) LICENSING OF SPORTIN G EVENT BROADCAST AN D OTHER 26
MEDIA RIGHTS; 27
(IV) LICENSING OF RIGHTS TO BROAD CAST TELEVISION 28
PROGRAMS; 29
HOUSE BILL 352 159
(V) LICENSING OF RIGHTS TO DISTRIBUTE SPECIA LTY 1
PROGRAMMING CONTENT ; AND 2
(VI) LICENSING OF RIGHTS TO SYNDICATED MEDIA CONTENT. 3
11–104. 4
(k) The sales and use tax rate for cannabis, as defined in § 1–101 of the Alcoholic 5
Beverages and Cannabis Article is[, for fiscal year 2024 and each fiscal year thereafter, 6
9%]: 7
(1) FOR FISCAL YEARS 2024 THROUGH 2026 2025, 9%; AND 8
(2) FOR FISCAL YEAR 2027 2026 AND EACH FISCAL YEAR 9
THEREAFTER , 15% 12%. 10
(L) (1) THE SALES AND USE TAX FOR A SALE OF A TAXA BLE SERVICE 11
DESCRIBED UNDER § 11–101(M)(14) THROUGH (16) OF THIS SUBTITLE IS 3% OF THE 12
TAXABLE PRICE . 13
(2) IF A DIFFERENT RATE F ROM THE RATE SPECIFI ED UNDER 14
PARAGRAPH (1) OF THIS SUBSECTION C OULD BE APPLIED T O A SALE OR USE OF 15
TANGIBLE PERSONAL PR OPERTY, A DIGITAL CODE , A DIGITAL PRODUCT , OR A 16
TAXABLE SERVICE , THE HIGHER RATE SHAL L APPLY TO THE SALE . 17
11–206. 18
[(g) (1) In this subsection, “snack food” means: 19
(i) potato chips and sticks; 20
(ii) corn chips; 21
(iii) pretzels; 22
(iv) cheese puffs and curls; 23
(v) pork rinds; 24
(vi) extruded pretzels and chips; 25
(vii) popped popcorn; 26
(viii) nuts and edible seeds; or 27
160 HOUSE BILL 352
(ix) snack mixtures that contain any one or more of the foods listed 1
in items (i) through (viii) of this paragraph. 2
(2) The sales and use tax does not apply to the sale of snack food through 3
a vending machine.] 4
[(h)] (G) The sales and use tax does not apply to the sale through a vending 5
machine of milk, fresh fruit, fresh vegetables, or yogurt. 6
11–214.1. 7
(b) The sales and use tax does not apply to a sale of precious metal bullion or coins 8
if: 9
(1) the sale price is greater than $1,000; AND 10
(2) THE SALE OCCURS AT T HE BALTIMORE CONVENTION CENTER. 11
11–215. 12
(a) [The sales and use tax does not apply to a sale of photographic material for 13
use in the production of an item that is used in: 14
(1) composition or printing; or 15
(2) production of another item used in printing. 16
(b)] (1) The sales and use tax does not apply to a sale of art works, electros, 17
electrotypes, hand or machine compositions, lithographic plates or negatives, mats, 18
photoengravings, stereotypes, or typographies: 19
(i) to a person engaged in the printing of tangible personal property 20
for sale; and 21
(ii) for direct use by the person to produce that property for sale. 22
(2) A vendor who sells any item under paragraph (1) of this subsection is 23
not entitled to any exclusion under § 11–101(h)(3)(ii) or (n)(3)(ii) of this title for material 24
that the vendor buys to produce that item. 25
[(c)] (B) (1) The sales and use tax does not apply to the printing and sale of 26
newspapers that are distributed by the publisher at no charge. 27
(2) A publication is not a newspaper unless it is published and distributed 28
at least once per month and it meets other criteria as defined by the Comptroller. 29
HOUSE BILL 352 161
[(d)] (C) The sales and use tax does not apply to: 1
(1) a sale of direct mail advertising literature and mail order catalogues 2
that will be distributed outside the State, and a sale of computerized mailing lists to the 3
extent used for the purpose of providing addresses to which direct mail advertising 4
literature and mail order catalogues will be distributed outside the State; or 5
(2) a sale of government documents, publications, records, or copies by the 6
federal or State or a local government or an instrumentality of the federal or State or a 7
local government. 8
11–219. 9
(a) The sales and use tax does not apply to a personal, professional, or insurance 10
service that: 11
(1) is not a taxable service; and 12
(2) involves a sale as an inconsequential element for which no separate 13
charge is made. 14
(b) [The sales and use tax does not apply to a sale of custom computer software, 15
regardless of the method transferred or accessed, or a service relating to custom computer 16
software that: 17
(1) would otherwise be taxable under this title; 18
(2) is to be used by a specific person; 19
(3) (i) is created for that person; or 20
(ii) contains standard or proprietary routines requiring significant 21
creative input to customize, configure, or modify the procedures and programs that are 22
necessary to perform the functions required for the software to operate as intended; and 23
(4) do not constitute a program, procedure, or documentation that is mass 24
produced and sold to: 25
(i) the general public; or 26
(ii) persons engaged in a trade, profession, or industry, except as 27
provided in item (3) of this subsection. 28
(c)] The sales and use tax does not apply to the sale of an optional computer 29
software maintenance contract if the buyer does not have a right, as part of the contract, to 30
receive at no additional cost software products that are separately priced and marketed by 31
the vendor. 32 162 HOUSE BILL 352
[(d)] (C) The sales and use tax does not apply to the use of a taxable service 1
obtained by using a prepaid telephone calling arrangement. 2
SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 3
as follows: 4
Article – Tax – General 5
10–402.1. 6
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(2) “COMBINED GROUP ” MEANS A GROUP OF COR PORATIONS: 9
(I) THAT IS ENGAGED IN A UNITARY BUSINESS ; 10
(II) IN WHICH MORE THAN 50% OF THE VOTING STOCK OF EACH 11
MEMBER IS DIRECTLY O R INDIRECTLY OWNED B Y: 12
1. A COMMON OWNER OR COMMON OWNERS , EITHER 13
CORPORATE OR NONCORP ORATE; OR 14
2. ONE OR MORE MEMBER C ORPORATIONS OF THE 15
GROUP; 16
(III) THE MEMBERS OF WHICH ARE SUBJECT TO THE I NCOME TAX 17
OR WOULD BE SUBJECT TO THE INCOME TAX IF DOING BUSINESS IN TH E STATE; AND 18
(IV) CONSISTING OF ANY OTHER ME MBERS UNDER THE 19
CIRCUMSTANCES AND TO THE EXTENT PROVIDED IN REGULATIONS ADOPT ED BY 20
THE COMPTROLLER TO PREVEN T THE AVOIDANCE OF T AX OR TO REFLECT CLE ARLY 21
THE INCOME OF ANY ME MBER OF THE COMBINED GROUP FOR ANY PERIOD . 22
(3) “COMBINED RET URN” MEANS A TAX RETURN F OR THE COMBINED 23
GROUP CONTAINING INF ORMATION AS PROVIDED IN THIS SECTION OR O THERWISE 24
REQUIRED BY THE COMPTROLLER . 25
(4) “UNITARY BUSINESS ” MEANS A SINGLE ECONO MIC ENTERPRISE 26
THAT IS MADE EITHER OF SEPARATE PARTS OF A SINGLE BUSIN ESS ENTITY OR OF A 27
COMMONLY CONTROLLED GROUP OF BUSINESS EN TITIES THAT ARE SUFF ICIENTLY 28
INTERDEPENDENT , INTEGRATED, AND INTERRELATED THR OUGH THEIR ACTIVITIE S 29
SO AS TO PROVIDE MUT UAL BENEFIT THAT PRO DUCES A SHARING OR E XCHANGE OF 30
VALUE AMONG THEM AND A SIGNIFICANT FLOW OF VALU E TO THE SEPARATE PA RTS. 31 HOUSE BILL 352 163
(B) (1) THE TERM “UNITARY BUSINESS ” SHALL BE CONSTRUED T O THE 1
BROADEST EXTENT ALLO WED UNDER THE U.S. CONSTITUTION. 2
(2) A BUSINESS CONDUCTED D IRECTLY OR INDIRECTL Y BY ONE 3
CORPORATION IS A UNI TARY BUSINESS WI TH RESPECT TO THAT P ORTION OF A 4
BUSINESS CONDUCTED B Y ANOTHER CORPORATIO N THROUGH ITS DIRECT OR 5
INDIRECT INTEREST IN A PARTNERSHIP IF THE REQUIREMENTS OF SUBS ECTION 6
(A)(4) OF THIS SECTION ARE SATISFIED, INCLUDING IF THERE I S SYNERGY AND AN 7
EXCHANGE AND FLO W OF VALUE BETWEEN T HE TWO PARTS OF THE BUSINESS AND 8
THE TWO CORPORATIONS ARE MEMBERS OF THE S AME COMMONLY CONTROL LED 9
GROUP. 10
(3) A BUSINESS CONDUCTED B Y A PARTNERSHIP SHAL L BE TREATED 11
AS CONDUCTED BY ITS PARTNERS, WHETHER DIRECTLY HEL D OR INDIRECTLY HEL D 12
THROUGH A SERIES OF PARTNERSHIPS , TO THE EXTENT OF THE PARTNER’S 13
DISTRIBUTIVE SHARE O F THE PARTNERSHIP ’S INCOME, REGARDLESS OF THE 14
PERCENTAGE OF THE PA RTNER’S OWNERSHIP INTEREST OR ITS DISTRIBUTIVE OR 15
ANY OTHER SHARE OF P ARTNERSHIP INCOME . 16
(C) (1) EXCEPT AS PROVIDED BY AN D SUBJECT TO REGULAT IONS 17
ADOPTED BY THE COMPTROLLER , FOR ALL TAXABLE YEAR S BEGINNING AFTER 18
DECEMBER 31, 2027, A CORPORATION ENGAGE D IN A UNITARY BUSIN ESS SHALL 19
FILE A COMBINED RETU RN, REPORTING AND PAYING TAX ON WORLDWIDE TAX ABLE 20
INCOME AS A COMBINED GROUP , REFLECTING THE AGGRE GATE INCOME TAX 21
LIABILITY OF ALL MEM BERS OF THE COMBINED GROUP THAT ARE ENGAG ED IN A 22
UNITARY BUSINESS . 23
(2) THE TAXABLE INCOME OF A CORPORATION REQUIR ED TO FILE 24
UNDER § 10–811(A)(2) OF THIS TITLE IS EQU AL TO THE COMBINED GROUP ’S 25
MARYLAND MODIFIED INC OME AS ADJUSTED UNDE R SUBSECTION (D)(3) OF THIS 26
SECTION. 27
(D) (1) THE MARYLAND MODIFIED TAXABLE INCOME OF THE COMBIN ED 28
GROUP EQUALS THE PRODUCT O F: 29
(I) THE COMBINED GROUP ’S APPORTIONABLE MARYLAND 30
MODIFIED INCOME , AS DETERMINED UNDER PARAGRAPH (2) OF THIS SUBSECTION 31
AND ADJUSTED UNDER P ARAGRAPH (3) OF THIS SUBSECTION ; AND 32
(II) THE COMBINED GROUP ’S MARYLAND APPORTIONMEN T 33
FACTOR, AS DETERMINED UNDER PARAGRAPH (4) OF THIS SUBSECTION . 34
164 HOUSE BILL 352
(2) (I) SUBJECT TO SUBPARAGR APHS (II) THROUGH (IV) OF THIS 1
PARAGRAPH , THE APPORTIONABLE MARYLAND MODIFIED INC OME OF THE 2
COMBINED GROUP EQUAL S THE SUM OF THE COR PORATION’S AND EACH MEMBER ’S 3
MARYLAND MODIFIED INC OME. 4
(II) 1. SUBJECT TO SUBSUBPARA GRAPH 2 OF THIS 5
SUBPARAGRAPH , FOR ANY MEMBER INCORPORATE D IN THE UNITED STATES OR 6
INCLUDED IN A CONSOL IDATED FEDERAL CORPO RATE INCOME TAX RETU RN, THE 7
INCOME TO BE INCLUDE D IN THE TOTAL APPOR TIONABLE INCOME OF T HE 8
COMBINED GROUP IS TH E MARYLAND MODIFIED INC OME AS CALCULATED UN DER § 9
10–304 OF THIS TITLE. 10
2. THE INCOME OF EACH ME MBER SHALL BE 11
CALCULATED ON A SEPA RATE RETURN BASIS AS IF THE MEMBER WERE N OT 12
CONSOLIDATED FOR FED ERAL INCOME TAX PURP OSES. 13
(III) 1. FOR ANY MEMBER NOT IN CLUDED UNDER 14
SUBPARAGRAPH (II) OF THIS PARAGRAPH , THE INCOME TO BE INCLUDED I N THE 15
TOTAL INCOME OF THE COMBINED GROUP IS DE TERMINED AS PROVIDED UNDER 16
THIS SUBPARAGRAPH . 17
2. A PROFIT AND LOSS STAT EMENT SHALL BE PREPA RED 18
FOR EACH FOREIGN BRA NCH OR CORPORATION I N THE CURRENCY IN WH ICH THE 19
BOOKS OF ACCOUNT OF THE BRANCH OR CORPORAT ION ARE REGULARLY 20
MAINTAINED. 21
3. THE PROFIT AND LOSS S TATEMENT SHALL BE 22
ADJUSTED TO CONFORM TO GENERALLY ACCEPTE D ACCOUNTING PRINCIP LES AS 23
ADOPTED BY THE U.S. FINANCIAL ACCOUNTING STANDARDS BOARD FOR THE 24
PREPARATION OF THE P ROFIT AND LOSS STATEMENTS , EXCEPT AS MODIFIED B Y 25
REGULATION . 26
4. EXCEPT AS OTHERWISE P ROVIDED BY REGULATIO N, 27
THE PROFIT AND LOSS STATEMENT OF EACH ME MBER OF THE COMBINED GROUP, 28
AND THE APPORTIONMEN T FACTORS RELATED TO EACH STATEMENT , WHETHER 29
UNITED STATES OR FOREIGN, SHALL BE TRANSLATED INTO THE CURRENCY IN 30
WHICH THE PARENT COM PANY MAINTAINS ITS B OOKS AND RECORDS . 31
5. INCOME APPORTIONED TO THE STATE SHALL BE 32
EXPRESSED IN UNITED STATES DOLLARS . 33
(IV) IF A UNITARY BUSINESS INCLUDES INCOME FROM A 34
PARTNERSH IP, THE INCOME TO BE INC LUDED IN THE TOTAL I NCOME OF THE 35
COMBINED GROUP EQUAL S THE DIRECT AND IND IRECT DISTRIBUTIVE S HARE OF 36 HOUSE BILL 352 165
THE PARTNERSHIP ’S UNITARY BUSINESS I NCOME ALLOCATED TO A NY MEMBER OF 1
THE COMBINED GROUP . 2
(3) THE COMBINED GROUP ’S APPORTIONABLE MARYLAND MODIFIED 3
INCOME SHALL BE ADJU STED TO ELIMINATE IN TERCOMPANY TRANSACTI ONS AS 4
DETERMINED UNDER THE INTERNAL REVENUE CODE. 5
(4) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 6
COMBINED GROUP ’S MARYLAND APPORTIONMEN T FACTOR IS A FRACTI ON: 7
1. THE NUMERATOR OF WHI CH IS THE SUM OF THE 8
CORPORATION ’S AND EACH MEMBER ’S MARYLAND FACTORS UNDE R § 10–402 OF 9
THIS SUBTITLE; AND 10
2. THE DENOMINATOR OF W HICH IS THE SUM OF T HE 11
CORPORATION ’S AND EACH MEMBER ’S FACTORS UNDER § 10–402 OF THIS SUBTITLE. 12
(II) THE APPORTIONMENT FAC TORS OF PASS –THROUGH 13
ENTITY MEMBERS ARE I NCLUDED IN THE NUMER ATOR UNDER SUBPARAGR APH (I)1 14
OF THIS PARAGRAPH AN D THE DENOMINATOR UN DER SUBPARAGRAPH (I)2 OF THIS 15
PARAGRAPH TO THE EXT ENT OF THE CORPORATI ON’S DIRECT AND INDIREC T 16
DISTRIBUTIVE SHARE O F THAT ENTITY. 17
(E) (1) SUBJECT TO REGULATION S ADOPTED BY THE COMPTROLLER , A 18
CORPORATION THAT IS PART OF A COMBINED GROUP MAY ELECT TO DETERMINE ITS 19
INCOME DERIVED FROM OR ATTRIBUTABLE TO T RADE OR BUSINESS IN THE STATE 20
USING THE WATER ’S EDGE METHOD AS DES CRIBED IN THIS SUBSE CTION. 21
(2) UNDER THE WATER ’S EDGE METHOD , THE COMBINED GROUP FOR 22
PURPOSES OF THE COMB INED REPORTING METHO D REQUIRED UNDER THI S 23
SECTION SHALL INCLUD E ONLY THE FOLLOWING AFFILIATED ENTITIES : 24
(I) CORPORATIONS THAT ARE INCORPORATE D IN THE UNITED 25
STATES, EXCLUDING CORPORATIO NS MAKING AN ELECTIO N UNDER §§ 931 26
THROUGH 934 OF THE INTERNAL REVENUE CODE; 27
(II) DOMESTIC INTERNATION AL SALES CORPORATION S, AS 28
DESCRIBED IN §§ 991 THROUGH 994 OF THE INTERNAL REVENUE CODE; 29
(III) ANY CORPORATION OTHE R THAN A BANK , REGARDLESS OF 30
THE PLACE WHERE IT I S INCORPORATED , IF THE AVERAGE OF TH E CORPORATION ’S 31
PROPERTY, PAYROLL, AND SALES FACTORS WI THIN THE UNITED STATES IS 20% OR 32
MORE; 33
166 HOUSE BILL 352
(IV) EXPORT TRADE CORPORA TIONS, AS DESCRIBED IN §§ 970 1
AND 971 OF THE INTERNAL REVENUE CODE; 2
(V) A FOREIGN CORPORATIO N DERIVING GAIN OR L OSS FROM 3
DISPOSITION OF AN IN TEREST IN REAL PROPE RTY IN THE UNITED STATES TO THE 4
EXTENT RECOGNIZED UN DER § 897 OF THE INTERNAL REVENUE CODE; AND 5
(VI) UNDER THE CIRCUMSTANCE S AND TO THE EXTENT 6
PROVIDED BY REGULATI ONS THAT THE COMPTROLLER ADOPTS : 7
1. A CORPORATION NOT DE SCRIBED IN ITEMS (I) 8
THROUGH (V) OF THIS PARAGRAPH TO THE EXTENT OF THE CO RPORATION’S INCOME 9
DERIVED FROM OR ATTR IBUTABLE TO SOURCES WITHIN THE UNITED STATES AND 10
THE CORPORATION ’S FACTORS ASSIGNABLE TO A LOCATION WITHIN THE UNITED 11
STATES; OR 12
2. AN AFFILIATED CORPOR ATION THAT IS A 13
CONTROLLED FOREIGN C ORPORATION , AS DEFINED IN § 957 OF THE INTERNAL 14
REVENUE CODE. 15
(3) THE USE OF THE WATER’S EDGE METHOD IS SUB JECT TO THE 16
TERMS AND CONDITIONS THAT THE COMPTROLLER REQUIRES BY REGULATION , 17
INCLUDING ANY CONDIT IONS THAT ARE NECESS ARY OR APPROPRIATE T O PREVENT 18
THE AVOIDANCE OF TAX OR TO REFLECT CLEARL Y THE INCOME FOR ANY PERIOD. 19
(F) (1) (I) AN ELECTION TO USE TH E WATER’S EDGE METHOD IN 20
ACCORDANCE WITH SUBS ECTION (E) OF THIS SECTION IS E FFECTIVE ONLY IF MAD E 21
ON A TIMELY FILED OR IGINAL RETURN FOR A TAX YEAR BY EVERY ME MBER OF THE 22
UNITARY BUSINESS . 23
(II) THE COMPTROLLER SHALL DEV ELOP REGULA TIONS 24
GOVERNING THE IMPACT , IF ANY, ON THE SCOPE OR APPL ICATION OF AN ELECTI ON 25
TO USE THE WATER ’S EDGE METHOD , INCLUDING TERMINATIO N OR DEEMED 26
ELECTION, RESULTING FROM A CHA NGE IN THE COMPOSITI ON OF THE UNITARY 27
BUSINESS, THE COMBINED GROUP , THE TAXPAYER ME MBERS, OR ANY OTHER 28
SIMILAR CHANGE . 29
(2) AN ELECTION TO USE TH E WATER’S EDGE METHOD SHALL 30
CONSTITUTE CONSENT T O THE REASONABLE PRO DUCTION OF DOCUMENTS AND 31
TAKING OF DEPOSITION S IN ACCORDANCE WITH THE MARYLAND RULES. 32
(3) AT THE DISCRETION OF THE COMPTROLLER, AN ELECTION TO 33
USE THE WATER ’S EDGE METHOD MAY BE DISREGARDED IN PART OR IN WHOLE, AND 34
THE INCOME AND APPOR TIONMENT FACTORS OF ANY MEMBER OF THE TA XPAYER’S 35 HOUSE BILL 352 167
UNITARY GROUP MAY BE INCLUDED IN THE COMB INED REPORT WITHOUT REGARD 1
TO THE PROVISIONS OF THIS SECTION, IF ANY MEMBER OF THE UNITARY GROUP 2
FAILS TO COMPLY WITH ANY PROVISION OF THI S SECTION OR IF A PE RSON 3
OTHERWISE NOT INCLUD ED IN THE WATER ’S EDGE COMBINED GROU P WAS AVAILED 4
OF A SUBSTANTIAL OBJ ECTIVE OF AVOIDING STATE INCOME TAX . 5
(4) (I) SUBJECT TO SUBPARAGRAPHS (II) THROUGH (IV) OF THIS 6
PARAGRAPH , AN ELECTION TO USE T HE WATER’S EDGE METHOD IS BIN DING FOR 7
AND APPLICABLE TO TH E TAXABLE YEAR IN WH ICH THE ELECTION IS MADE AND ALL 8
TAXABLE YEARS THEREA FTER FOR A PERIOD OF 10 YEARS. 9
(II) AN ELECTION TO USE THE WATER ’S EDGE METHOD MAY BE 10
WITHDRAWN OR REINSTI TUTED AFTER WITHDRAW AL, BEFORE THE EXPIRATIO N OF 11
THE 10–YEAR PERIOD, ONLY ON WRITTEN REQU EST FOR REASONABLE C AUSE AND 12
ONLY WITH THE WRITTE N PERMISSION OF THE COMPTROLLER . 13
(III) IF THE COMPTROL LER GRANTS A WITHDRA WAL OF THE 14
ELECTION UNDER SUBPA RAGRAPH (II) OF THIS PARAGRAPH , THE COMPTROLLER 15
SHALL IMPOSE REASONA BLE CONDITIONS AS NE CESSARY TO PREVENT T HE EVASION 16
OF TAX OR TO CLEARLY REFLECT INCOME FOR T HE ELECTION PERIOD B EFORE OR 17
AFTER THE WITHDR AWAL. 18
(IV) 1. SUBJECT TO SUBSUBPARA GRAPH 2 OF THIS 19
SUBPARAGRAPH , ON THE EXPIRATION OF THE 10–YEAR PERIOD, A TAXPAYER MAY 20
WITHDRAW FROM THE EL ECTION TO USE THE WA TER’S EDGE METHOD . 21
2. THE WITHDRAWAL SHALL BE MADE IN WRITING 22
WITHIN 1 YEAR BEFORE THE EXPIRATION OF THE EL ECTION AND IS BINDIN G FOR A 23
PERIOD OF 10 YEARS, SUBJECT TO THE SAME CONDITIONS AS APPLIE D TO THE 24
ORIGINAL ELECTION . 25
3. IF NO WITHDRAWAL IS P ROPERLY MADE UNDER T HIS 26
SUBPARAGRAPH , THE ELECTION TO USE THE WATER ’S EDGE METHOD SHALL 27
REMAIN IN EFFECT FOR A N ADDITIONAL 10–YEAR PERIOD, SUBJECT TO THE SAME 28
CONDITIONS AS APPLIE D TO THE ORIGINAL EL ECTION. 29
(G) (1) THE COMPTROLLER SHALL ADO PT REGULATIONS THAT ARE 30
NECESSARY AND APPROP RIATE TO CARRY OUT T HIS SECTION. 31
(2) THE REGULATIONS ADOP TED BY THE COMPTROLLER SHALL BE 32
CONSISTENT WITH THE “PRINCIPLES FOR DETERMINING THE EXISTENCE OF A 33
UNITARY BUSINESS” (REG. IV.1.(B)) OF THE MODEL GENERAL ALLOCATION AND 34
APPORTIONMENT REGULATIONS, AS ADOPTED BY THE MULTISTATE TAX 35
COMMISSION. 36 168 HOUSE BILL 352
10–811. 1
(A) (1) [Each member of] EXCEPT AS PROVIDED BY AND SUBJECT TO 2
REGULATIONS ADOPTED BY THE COMPTROLLER , an affiliated group of corporations 3
[shall file a separate income tax return] ENGAGED IN A UNITARY BUSINESS SHALL FILE 4
A COMBINED INCOME TA X RETURN REFLECTING THE AGGREGATE INCOME TAX 5
LIABILITY OF ALL THE MEMBERS OF THE AFFIL IATED GROUP THAT ARE ENGAGED IN 6
A UNITARY BUSINESS . 7
(2) THE RETURN REQUIRED U NDER PARAGRAPH (1) OF THIS 8
SUBSECTION SHALL INC LUDE THE INCOME AND APPORTIONMENT FACTOR S 9
DETERMINED UNDER § 10–402.1(D) AND (E) OF THIS TITLE, AND ANY OTHER 10
INFORMATION REQUIRED BY THE COMPTROLLER , FOR ALL MEMBERS OF T HE 11
COMBINED GROUP WHERE VER LOCATED OR DOING BUSINESS. 12
(3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 13
PARAGRAPH , THE COMBINED RETURN SHALL BE FILED UNDER TH E NAME AND 14
FEDERAL EMPLOYER IDE NTIFICATION NUMBER O F THE PARENT CORPORA TION IF 15
THE PARENT IS A MEMB ER OF THE COMBINED G ROUP. 16
(II) IF THERE IS NO PARENT CORPORATION OR IF TH E PARENT 17
IS NOT A MEMBER OF T HE COMBINED GROUP , THE MEMBERS OF THE COMBINED 18
GROUP SHALL CHOOSE A MEMBER TO FILE THE R ETURN. 19
(III) THE FILING MEMBER UND ER SUBPARAGRAPH (I) OR (II) OF 20
THIS PARAGRAPH SHALL CONTINUE TO FILE THE COMBINED RETURN UNLE SS THE 21
FILING MEMBER IS NO LONGER THE PARENT CO RPORATION OR NO LONG ER A 22
MEMBER OF THE COMBIN ED GROUP. 23
(4) THE RETURN SHALL BE S IGNED BY A RESPONSIB LE OFFICER OF 24
THE FILING MEMBER ON BEHALF OF THE COMBIN ED GROUP MEMBERS . 25
(5) MEMBERS OF THE COMBIN ED GROUP ARE JOINTLY AND 26
SEVERALLY LIABLE FOR THE TAX LIABILITY OF THE COMBINED GROUP INCLUD ED 27
IN THE COMBINED RETU RN. 28
(B) (1) THE COMPTROLLER MAY , BY REGULATION , REQUIRE THAT THE 29
COMBINED RETURN INCL UDE THE INCOME AND A SSOCIATED APPORTIONM ENT 30
FACTORS OF ENTITIES THAT ARE NOT INCLUDE D IN THE COMBINED RE PORT BUT 31
THAT ARE MEMB ERS OF A UNITARY BUS INESS IN ORDER TO RE FLECT PROPER 32
APPORTIONMENT OF INC OME OF THE ENTIRE UN ITARY BUSINESS. 33
HOUSE BILL 352 169
(2) IF THE COMPTROLLER DETERMINE S THAT THE REPORTED 1
INCOME OR LOSS OF A TAXPAYER ENGAGED IN A UNITARY BUSINESS W ITH A MEMBER 2
NOT INCLUDED IN THE COMBINED GROUP REPRE SENTS AN AVOIDANCE O R EVASION 3
OF TAX, THE COMPTROLLER MAY , ON A CASE–BY–CASE BASIS, REQUIRE THAT ALL 4
OR PART OF THE INCOM E AND ASSOCIATED APP ORTIONMENT FACTORS O F THE 5
MEMBER BE INCLUDED I N THE TAXPAYER ’S COMBINED RETURN . 6
(3) THE COMPTROLLER MAY REQUIRE : 7
(I) THE EXCLUSION OF ONE OR MORE FACTORS , THE 8
INCLUSION OF ONE OR MORE ADDITIONAL FACT ORS, OR THE EMPLOYMENT OF ANY 9
OTHER METHOD THAT WI LL FAIRLY REPRESENT THE TAXPAYER ’S BUSINESS IN THE 10
STATE; OR 11
(II) THE EMPLOYMENT OF AN Y OTHER METHOD TO EFFECT UATE 12
A PROPER REFLECTION OF THE TOTAL AMOUNT OF INCOME SUBJECT TO 13
APPORTIONMENT AND AN EQUITABLE ALLOCATION AND APPORTIONMENT OF THE 14
COMBINED GROUP ’S OR ITS MEMBERS ’ INCOME. 15
(C) THE COMPTROLLER SHALL ADO PT REGULATIONS THAT ARE 16
NECESSARY AND APPROP RIATE TO CARRY OUT T HIS SECTION. 17
SECTION 6. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 18
as follows: 19
Chapter 397 of the Acts of 2011, as amended by Chapter 425 of the Acts of 2013, 20
Chapter 464 of the Acts of 2014, Chapter 489 of the Acts of 2015, Chapter 23 of 21
the Acts of 2017, Chapter 10 of the Acts of 2018, Chapter 16 of the Acts of 2019, 22
Chapter 538 of the Acts of 2020, and Chapter 103 of the Acts of 2023 23
SECTION 16. AND BE IT FURTHER ENACTED, That, in addition to a ny other 24
revenue generated under § 19–214 of the Health – General Article, as amended by this Act: 25
(c) (1) For fiscal year 2015 and 2016, the Commission and the Maryland 26
Department of Health shall adopt policies that will provide up to $389,825,000 in special 27
fund revenues from hospital assessment and remittance revenue. 28
(2) For fiscal year 2017, the Governor shall reduce the budgeted Medicaid 29
Deficit Assessment by $25,000,000 over the assessment level for the prior year. 30
(3) For fiscal year 2018, the budgeted Medicaid Deficit Assessment shall be 31
$364,825,000. 32
(4) For fiscal year 2019, the budgeted Medicaid Deficit Assessment shall be 33
$334,825,000. 34
170 HOUSE BILL 352
(5) For fiscal year 2020, the budgeted Medicaid Deficit Assessment shall be 1
$309,825,000. 2
(6) [Except as provided in paragraph (7) of this subsection, for] FOR fiscal 3
[year 2021, and each fiscal year thereafter] YEARS 2021, 2022, AND 2023, the budgeted 4
Medicaid Deficit Assessment shall be $294,825,000. 5
(7) For fiscal year 2024 only, the budgeted Medicaid Deficit Assessment 6
shall be $244,825,000. 7
(8) (I) FOR FISCAL YEAR 2025, THE BUDGETED MEDICAID 8
DEFICIT ASSESSMENT SHALL BE $344,825,000. 9
(II) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 10
THEREAFTER , THE BUDGETED MEDICAID DEFICIT ASSESSMENT SHALL BE 11
$394,825,000. 12
(III) THE COMMISSION AND THE MARYLAND DEPARTMENT OF 13
HEALTH MAY ADOPT AN A LTERNATIVE METHOD TO ACHIEVE THE EQUIVALE NT 14
AMOUNT OF REVENUE AC ROSS THE 2 YEARS BY THE END OF FISCAL YEAR 2026. 15
[(8)] (9) To the extent that the Commission takes other actions that 16
reduce Medicaid costs, those savings shall also be used to reduce the budgeted Medicaid 17
Deficit Assessment. 18
[(9)] (10) To the maximum extent possible, the Commission and the 19
Maryland Department of Health shall adopt policies that preserve the State’s Medicare 20
waiver. 21
Chapter 260 of the Acts of 2023 22
SECTION 2. AND BE IT FURTHER ENACTED, That, for fiscal year 2025, the 23
Governor [shall] MAY include in the annual budget bill an appropriation of $12,000,000 to 24
the 9–8–8 Trust Fund established under § 7.5–5A–02 of the Health – General Article. 25
Chapter 261 of the Acts of 2023 26
SECTION 2. AND BE IT FURTHER ENACTED, That, for fiscal year 2025, the 27
Governor [shall] MAY include in the annual budget bill an appropriation of $12,000,000 to 28
the 9–8–8 Trust Fund established under § 7.5–5A–02 of the Health – General Article. 29
Chapter 275 of the Acts of 2023 30
[SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 31
That the Maryland Department of Health shall apply to the Substance Abuse and Mental 32
Health Services Administration at the Center for Mental Health Services for federal 33 HOUSE BILL 352 171
planning, development, and implementation grant funds related to certified community 1
behavioral health clinics for fiscal year 2025.] 2
[SECTION 2. AND BE IT FURTHER ENACTED That the Maryland Department of 3
Health shall apply to the Substance Abuse and Mental Health Services Administration at 4
the Center for Mental Health Services for inclusion in the state certified community 5
behavioral health clinic demonstration program for fiscal year 2026.] 6
Chapter 717 of the Acts of 2024 7
SECTION 8. AND BE IT FURTHER ENACTED, That, notwithstanding any other 8
provision of law, and unless inconsistent with a federal law, grant agreement, or other 9
federal requirement, or with the terms of a gift or settlement agreement, for fiscal years 10
2024 through 2028, net interest on all State money allocated by the State Treasurer under 11
§ 6–226 of the State Finance and Procurement Article to special funds or accounts, and 12
otherwise entitled to receive interest earnings, as accounted for by the Comptroller, shall 13
accrue to the General Fund of the State, with the exception of the following funds: 14
[(42) Strategic Energy Investment Fund;] 15
SECTION 9. AND BE IT FURTHER ENACTED, That, notwithstanding any other 16
provision of law, on or before June 30, 2025, the Governor may transfer to the General Fund 17
[$60,000,000] $80,000,000 from the reserve account established by the State to pay 18
unemployment compensation benefits for State employees. 19
SECTION 7. AND BE IT FURTHER ENACTED, That Section(s) 24 –204(d) of 20
Article – Education of the Annotated Code of Maryland be repealed. 21
SECTION 8. AND BE IT FURTHER ENACTED, That Section(s) 7 –717 of Article – 22
Health – General of the Annotated Code of Maryland be repealed. 23
SECTION 9. 7. AND BE IT FURTHER ENACTED, That Section(s) 16 –503 of 24
Article – Local Government of the Annotated Code of Maryland be repealed. 25
SECTION 10. AND BE IT FURTHER ENACTED, That Section(s) 2–701 and 2–702 26
and the subtitle “Subtitle 7. Inheritance Tax Revenue Distribution” and 7–201 through 27
7–234 and the subtitle “Subtitle 2. Inheritance Tax” of Article – Tax – General of the 28
Annotated Code of Maryland be repealed. 29
SECTION 11. AND BE IT FURTHER ENACTED, That Section(s) 10 –702 of 30
Article – Tax – General of the Annotated Code of Maryland be repealed. 31
SECTION 12. 8. AND BE IT FURTHER ENACTED, That, notwithstanding Section 32
8 of Chapter 717 of the Acts of the General Assembly of 2024 or any other provision of law, 33
on or before June 30, 2025, the Governor may transfer to the General Fund the fiscal year 34
2025 interest earnings from the Strategic Energy Investment Fund established under § 35
9–20B–05 of the State Government Article. 36 172 HOUSE BILL 352
SECTION 13. 9. AND BE IT FURTHER ENACTED, That, notwithstanding any 1
other provision of law, on or before June 30, 2025, the Governor may transfer to the General 2
Fund $203,365,440 from the Dedicated Purpose Account established under § 7–310 of the 3
State Finance and Procurement Article, including: 4
(1) $63,478,440 for cybersecurity; 5
(2) $62,887,000 in capital pay–as–you–go funds for construction of a new 6
State veterans home; 7
(3) $25,000,000 in capital pay–as–you–go funds for the University of 8
Maryland Medical System Comprehensive Cancer and Organ Transplant Center; 9
(4) $20,000,000 for the relocation of State agencies out of State Center; 10
(5) $11,000,000 in capital pay–as–you–go funds for Department of Natural 11
Resources critical maintenance; 12
(6) $10,000,000 in capital pay–as–you–go funds for Morgan State 13
University deferred maintenance and site improvements; 14
(7) $6,000,000 in funding to implement Chapter 464 of the Acts of the 15
General Assembly of 2022 (End the Wait Act); and 16
(8) $5,000,000 in capital pay–as–you–go funds for Baltimore City 17
Community College deferred maintenance. 18
SECTION 14. 10. AND BE IT FURTHER ENACTED, That, notwithstanding any 19
other provision of law, on or before June 30, 2025, the Governor may transfer to the General 20
Fund the following: 21
(1) $150,000,000 $230,000,000 from the Renewable Portfolio Standard / 22
ACP Account of the Strategic Energy Investment Fund established under § 9–20B–05 of 23
the State Government Article; 24
(2) $9,000,000 from the Resilient Maryland Rev olving Loan Fund 25
established under § 14–110.4 of the Public Safety Article; 26
(3) $7,000,000 from the Maryland Police Training and Standards 27
Commission Fund established under § 3–206.1 of the Public Safety Article; 28
(4) $6,000,000 from the Maryland Innovation Investment Tax Credit 29
Reserve Fund established under § 10–733 of the Tax – General Article; 30
HOUSE BILL 352 173
(5) $5,000,000 from the Securities Act Registration Fund established under 1
§ 11–208 of the Corporations and Associations Article Mortgage Loan Servicing Practices 2
Settlement Fund established under § 7–328 of the State Finance and Procurement Article; 3
(6) $4,900,000 from the Maryland Violence Intervention and Prevention 4
Program Fund established under § 4–902 of the Public Safety Article; and 5
(7) $4,300,000 from the More Jobs for Marylanders Tax Credit Reserve 6
Fund established under § 10–741 of the Tax – General Article; and 7
(8) $4,000,000 from the Rape Kit Testing Grant Fund established under § 8
4–401 of the Public Safety Article. 9
SECTION 15. AND BE IT FURTHER ENACTED, That, notwithstanding any other 10
provision of law, including Chapter 716 of the Acts of the General Assembly of 2024, 11
authorization is hereby provided to the Maryland Department of Health to transfer funds 12
amongst budgetary programs in the Department with an approved budget amendment for 13
fiscal years 2025 and 2026. 14
SECTION 16. 11. AND BE IT FURTHER ENACTED, That, notwithstanding any 15
other provision of law, the Governor may appropriate to the Department of Natural 16
Resources up to $16,400,000 from the Program Open Space State land acquisition fund 17
balance for operating expenses in the Maryland Park Service in fiscal year 2026 only. 18
SECTION 17. 12. AND BE IT FURTHER ENACTED, That, notwithstanding any 19
other provision of law, on or before June 30, 2026, the Governor may transfer to the General 20
Fund $10,000,000 $13,100,000 from the Maternal and Child Health Population Health 21
Improvement Fund established under § 19–210 of the Health – General Article. 22
SECTION 18. 13. AND BE IT FURTHER ENACTED, That, notwithstanding any 23
other provision of law, on or before June 30, 2026, the Governor may transfer to the 24
Behavioral Health Administration within the Maryland Department of Health the 25
following: 26
(1) $96,654 from the Kidney Disease Fund established under § 13–310.1 of 27
the Health – General Article; 28
(2) (1) $1,570,750 from the State Board of Physicians Fund established under 29
§ 14–207 of the Health Occupations Article; 30
(3) (2) $720,938 $837,313 from the State Board of Examiners for Audiologists, 31
Hearing Aid Dispensers, Speech–Language Pathologists, and Music Therapists Fund 32
established 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
174 HOUSE BILL 352
(5) (3) $371,904 $418,756 from the State Board of Dietetic Practice Fund 1
established under § 5–206 of the Health Occupations Article; 2
(6) (4) $332,957 $119,022 from the State Board of Acupuncture Fund 3
established under § 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) (5) $40,699 from the State Board of Chiropractic Examiners Fund 9
established under § 3–206 of the Health Occupations Article; 10
(6) $4,497,322 from the State Board of Professional Counselors and 11
Therapists Fund established under § 17–206 of the Health Occupations Article; 12
(7) $1,059,742 from the State Board of Occupational Therapy Practice 13
Fund established under § 10–206 of the Health Occupations Article; and 14
(8) $946,269 from the State Board of Examiners for Psychologists Fund as 15
established under § 18–207 of the Health Occupations Article. 16
SECTION 14. AND BE IT FURTHER ENACTED, That, notwithstanding any other 17
provision of law, on or before June 30, 2026, the Governor may transfer to the General Fund 18
$20,000,000 from the Circuit Court Real Property Records Improvement Fund established 19
under § 13–602 of the Courts Article. 20
SECTION 15. AND BE IT FURTHER ENACTED, That, notwithstanding any other 21
provision of law, on or before June 30, 2026, the Governor may transfer to the General Fund 22
$1,000,000 from the State Used Tire Cleanup and Recycling Fund established under § 23
9–273 of the Environment Article. 24
SECTION 16. AND BE IT FURTHER ENACTED, That, notwithstanding any other 25
provision of law, on or before June 30, 2026, the Governor may transfer to the General Fund 26
$3,000,000 of the interest from the Racing and Community Development Financing Fund 27
established under § 10–657.2 of the Economic Development Article. 28
SECTION 17. AND BE IT FURTHER ENACTED, That, notwithstanding § 7 –311 of 29
the State Finance and Procurement Article or any other provision of law, on or before June 30
30, 2026, if necessary, the Governor may transfer sufficient funds by budget amendment to 31
the Annuity Bond Fund to ensure that the State Treasurer is able to pay debt service to 32
the bondholders of the State. 33
SECTION 18. AND BE IT FURTHER ENACTED, That, notwithstanding Section 8 34
of Chapter 717 of the Acts of the General Assembly of 2024 or any other provision of law, 35 HOUSE BILL 352 175
on or before June 30, 2026, the Governor may transfer to the General Fund $3,000,000 of 1
interest earnings from the Racing and Community Development Financing Fund 2
established under § 10–657.2 of the Economic Development Article. 3
SECTION 19. AND BE IT FURTHER ENACTED, That, for fiscal year 2026, 4
payments to providers with rates set by the Interagency Rates Committee under § 8–417 5
of the Education Article may not increase over the rates in effect on January 1, 2025. 6
SECTION 19. 20. AND BE IT FURTHER ENACTED, That: 7
(a) The transportation revenues raised in accordance with the provisions of this 8
Act shall remain allocated within the Maryland Department of Transportation. 9
(b) Notwithstanding § 8–402 of the Transportation Article or any other provision 10
of law, the revenue increases attributable to alterations to the titling tax provisions of this 11
Act may not be credited to the Gasoline and Motor Vehicle Revenue Account. 12
SECTION 20. 21. AND BE IT FURTHER ENACTED, That the Comptroller shall 13
waive any interest or penalty imposed on an individual relating to payment of estimated 14
income tax for calendar year 2025 to the extent that the Comptroller determines that the 15
interest or penalty would not have been incurred but for an increase in the income tax rates 16
for calendar year 2025 under Section 3 of this Act. 17
SECTION 21. 22. AND BE IT FURTHER ENACTED, That Section 2 Sections 2 and 18
4 of this Act shall take effect July 1, 2025. Sections 13–802, 13–809, and 13–810 of the 19
Transportation Article, as enacted by Section 2 of this Act, shall be applicable to all 20
certificates of title issued on or after July 1, 2025, and to all motor vehicles, trailers, or 21
semitrailers subject to the excise tax that are in interstate operation and registered under 22
§ 13–109(c) or (d) of the Transportation Article without a certificate of title on or after July 23
1, 2025. 24
SECTION 22. 23. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall 25
take effect July 1, 2025, and shall be applicable to all taxable years beginning after 26
December 31, 2024. 27
SECTION 23. 24. AND BE IT FURTHER ENACTED, That Sections 4 and 9 Section 28
9 of this Act shall take effect July 1, 2026. 29
SECTION 24. 25. AND BE IT FURTHER ENACTED, That Section 5 of this Act shall 30
take effect July 1, 2027, and shall be applicable to all taxable years beginning after 31
December 31, 2027. 32
SECTION 25. AND BE IT FURTHER ENACTED, That Section 10 9 of this Act shall 33
take effect July 1, 2025, and shall be applicable to persons dying on or after July 1, 2025. 34
Those statutes in effect on June 30, 2025, shall govern the administration, on and after 35
July 1, 2025, of estates of persons who died before July 1, 2025, and shall govern the 36
imposition, rate, administration, collection, enforcement, and distribution, on and after 37 176 HOUSE BILL 352
July 1, 2025, of the inheritance tax on property passing from persons who died before July 1
1, 2025. 2
SECTION 26. AND BE IT FURTHER ENACTED, That, except as provided in 3
Sections 21, 22, 23, 24, and 25 of this Act, this Act shall take effect June 1, 2025. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.