EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0648*
HOUSE BILL 648
C8 5lr1836
CF SB 377
By: Delegates Wells, Boyce, Ruff, Smith, and Young
Introduced and read first time: January 23, 2025
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Economic Development – Business Resource Initiative for Developmental 2
Growth and Empowerment (BRIDGE) Program – Establishment 3
FOR the purpose of establishing the Business Resource Initiative for Developmental 4
Growth and Empowerment (BRIDGE) Program and Fund in the Department of 5
Commerce to provide grants to certain business entities to establish certain business 6
incubators; and generally relating to the establishment of the Business Resource 7
Initiative for Developmental Growth and Empowerment Program and Fund. 8
BY repealing and reenacting, without amendments, 9
Article – Economic Development 10
Section 1–101(a) and (c) 11
Annotated Code of Maryland 12
(2024 Replacement Volume and 2024 Supplement) 13
BY adding to 14
Article – Economic Development 15
Section 5–2701 through 5–2706 to be under the new subtitle “Subtitle 27. BRIDGE 16
Program” 17
Annotated Code of Maryland 18
(2024 Replacement Volume and 2024 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Economic Development 22
1–101. 23
(a) In this division the following words have the meanings indicated. 24
2 HOUSE BILL 648
(c) “Department” means the Department of Commerce. 1
SUBTITLE 27. BRIDGE PROGRAM. 2
5–2701. 3
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 4
INDICATED. 5
(B) “BRIDGE PROGRAM” MEANS THE BUSINESS RESOURCE INITIATIVE 6
FOR DEVELOPMENTAL GROWTH AND EMPOWERMENT PROGRAM. 7
(C) “FUND” MEANS THE BUSINESS RESOURCE INITIATIVE FOR 8
DEVELOPMENTAL GROWTH AND EMPOWERMENT FUND. 9
(D) “QUALIFIED INCUBATOR ” MEANS A FOR –PROFIT ORGANIZATION , 10
NONPROFIT ORGANIZATI ON, B CORPORATION , PUBLIC–PRIVATE PARTNERSHIP , OR 11
SOCIAL ENTERPRISE IN THE STATE THAT: 12
(1) PRIMARILY SERVES OR WILL PRIMARILY SER VE BUSINESSES IN 13
THE STATE; 14
(2) REQUIRES OR WILL REQ UIRE PARTICIPATING B USINESSES TO 15
ENGAGE IN A FORMAL I NCUBATOR PROGRAM DES IGNED TO ADVANCE EAR LY–STAGE 16
BUSINESSES; 17
(3) IS STAFFED OR WILL B E STAFFED BY AT LEAS T ONE INDIVIDUAL 18
DEDICATED TO MENTORI NG BUSINESSES AND GUIDI NG BUSINESSES THROUG H THE 19
BRIDGE PROGRAM; 20
(4) IS DIRECTED BY AN IN DIVIDUAL WHO HAS COM PLETED A 21
TRAINING PROGRAM THAT: 22
(I) FOCUSED ON OPERATING A BUSINESS INCUBATOR 23
TARGETING SOCIALLY A ND ECONOMICALLY DISA DVANTAGED ENTREPRENE URS OR 24
HELPING SOCIALLY AND ECONOMICALLY DISADVA NTAGED ENTREPRENEURS 25
SECURE INVESTMENT ; AND 26
(II) INCORPORATED TOPICS INCLUDING: 27
1. DIVERSITY, EQUITY, AND INCLUSION SOLUTI ONS; 28
2. BUILDING WEALTH IN D IVERSE COMMUNITIES ; 29
HOUSE BILL 648 3
3. NAVIGATING DIVERSE TECHNOLOGY 1
ENTREPRENEURSHIP ; 2
4. RISK, LEGAL ISSUES , AND SECURITIES AND 3
EXCHANGE COMMISSION REGULATION S; 4
5. THE DUE DILIGENCE PR OCESS FOR EARLY –STAGE 5
INVESTMENTS ; 6
6. ACCOUNTING , TAXES, AND EXITS FOR COMPAN IES 7
AND FOUNDERS ; 8
7. UNDERSTANDING AND MI TIGATING CONSCIOUS A ND 9
UNCONSCIOUS BIAS ; AND 10
8. CORPORATE BOARD GOVE RNANCE, HUMAN 11
RESOURCES, PROCUREMENT , PRODUCT DEVELOPMENT , AND CORPORATE 12
INNOVATION; AND 13
(5) WAS ESTABLISHED ON O R AFTER JANUARY 1, 2012. 14
5–2702. 15
(A) (1) THERE IS A BRIDGE PROGRAM IN THE DEPARTMENT . 16
(2) THE PURPOSE OF THE BRIDGE PROGRAM IS TO PROVIDE 17
GRANTS TO QUALIFIED INCUBATORS TO ESTABLISH DIVERSE AND EFFECTIVE 18
BUSINESS INCUBATORS IN THE STATE. 19
(B) THE DEPARTMENT SHALL ADMINISTER THE BRIDGE PROGRAM. 20
5–2703. 21
(A) EACH FISCAL YEAR , THE DEPARTMENT SHALL AWAR D GRANTS IN 22
ACCORDANCE WITH THIS SECTION. 23
(B) (1) THE DEPARTMENT MAY AWARD A GRANT UNDER THE BRIDGE 24
PROGRAM FOR: 25
(I) PLANNING THE ESTABLI SHMENT OF A QUALIFIE D 26
INCUBATOR OR PLANNIN G FOR A QUA LIFIED INCUBATOR ’S LONG–TERM 27
SUSTAINABILITY ; 28
4 HOUSE BILL 648
(II) CAPITAL IMPROVEMENTS , SECURING REAL ESTATE , 1
RENOVATIONS , AND THE PURCHASE OF CAPITAL EQUIPMENT TO ESTABLISH OR 2
GROW A QUALIFIED INC UBATOR; OR 3
(III) OPERATING AND PROGRA M EXPENSES ASSOCIATE D WITH 4
SUPPORTING PROGRAMS . 5
(2) EXCEPT IN THE FIRST Y EAR OF A GRANT , GRANTS AWARDED 6
UNDER THE BRIDGE PROGRAM MAY NOT BE US ED TO SUPPORT MORE T HAN 25% 7
OF THE OPERATING EXP ENSES OF A QUALIFIED INCUBATOR. 8
(3) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 9
GRANTS AWARDED UNDER THE BRIDGE PROGRAM SHALL RENEW A ND BE 10
AWARDED TO A QUALIFI ED INCUBATOR EACH FI SCAL YEAR WITHOUT FU RTHER 11
APPLICATION. 12
(II) THE RENEWAL OF A GRAN T IS SUBJECT TO THE QUALIFIED 13
INCUBATOR’S COMPLIANCE WITH TH E TERMS OF THE GRANT INCLUDING ECONOMIC 14
IMPACT METRICS PROPO SED IN THE APPLICATI ON FOR THE GRANT AND ON A 15
COMPETITIVE BASIS WI TH OTHER QUALIFIED I NCUBATORS APPLYING F OR 16
FUNDING. 17
(4) FOR ANY FISCAL YEAR , AN ORGANIZATION MAY NOT RECEIVE A 18
GRANT UNDER THE BRIDGE PROGRAM THAT IS LESS THAN $100,000 OR EXCEEDS 19
$400,000. 20
(C) (1) THE DEPARTMENT SHALL ESTABLISH A CO MPETITIVE 21
APPLICATION PROCESS FOR GRANTS MADE UNDE R THE BRIDGE PROGRAM. 22
(2) IN MAKING AWARDS , THE DEPARTMENT SHALL GIVE 23
PREFERENCE TO QUALIF IED INCUBATORS THAT : 24
(I) HAVE A PROGRAM MANAG ED BY SOCIALLY OR 25
ECONOMICALLY DISADVA NTAGED INDIVIDUALS ; 26
(II) ARE LOCATED IN A FED ERALLY RECOGNIZED HU B ZONE, A 27
STATE QUALIFIED OPPOR TUNITY ZONE, OR AN UNDERSERVED CO MMUNITY; 28
(III) HAVE EXPERIENCE SUPP ORTING COMPANIES IN THE 29
START–UP STAGE; 30
(IV) SERVE COMPANIES LED BY SOCIALLY OR ECONO MICALLY 31
DISADVANTAGED INDIVI DUALS AND THAT HAVE AN ECONOMIC IMP ACT ON 32
UNDERSERVED COMMUNIT IES; OR 33 HOUSE BILL 648 5
(V) HAVE ESTABLISHED A P RESENCE IN AN UNDERS ERVED 1
COMMUNITY . 2
5–2704. 3
(A) (1) THE DEPARTMENT AND A GRAN T RECIPIENT SHALL EX ECUTE A 4
BRIDGE PROGRAM AGREEMENT . 5
(2) THE GRANT RECIPIENT S HALL COMPLY WITH THE TERMS OF THE 6
BRIDGE PROGRAM AGREEMENT . 7
(3) THE DEPARTMENT MAY EXERCI SE ANY REMEDY AUTHOR IZED BY 8
LAW IF THE GRANT REC IPIENT: 9
(I) VIOLATES ANY PROVISI ON OF THE BRIDGE PROGRAM 10
AGREEMENT ; OR 11
(II) DOES NOT MEET A REQU IREMENT UNDER THIS SUBTITLE. 12
(B) (1) ON OR BEFORE SEPTEMBER 1, 2027, AND EACH SEPTEMBER 1 13
THEREAFTER , AN ORGANIZATION THAT RECEIVES A GRANT UND ER THE BRIDGE 14
PROGRAM SHALL REPORT TO THE DEPARTMENT DOCUMENTIN G HOW THE 15
ORGANIZATION USED THE GRANT MONEY RECEIVED IN THE IMME DIATELY 16
PRECEDING FISCAL YEA R. 17
(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 18
SUBSECTION SHALL INC LUDE: 19
(I) INFORMATION ABOUT THE USE OF THE GRANT; 20
(II) THE ECONOMIC IMPACT OF THE GRANT; AND 21
(III) ANY OTHER INFORMATIO N THE DEPARTMENT CONSIDERS 22
NECESSARY TO DETERMI NE THE EFFECTIVENESS AND IMPACT OF THE BRIDGE 23
PROGRAM. 24
(3) ON OR BEFORE DECEMBER 31, 2027, AND EACH DECEMBER 31 25
THEREAFTER , THE DEPARTMENT SHALL REPO RT TO THE GENERAL ASSEMBLY, IN 26
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE 27
FOLLOWING INFORMATIO N FOR THE PRECEDING FISCAL YEAR: 28
(I) THE NUMBER OF GRANTS AWARDED UNDER THE BRIDGE 29
PROGRAM; 30 6 HOUSE BILL 648
(II) THE AMOUNT OF EACH G RANT AWARDED UNDER T HIS 1
SUBTITLE; AND 2
(III) THE NAME AND LOCATIO N OF EACH ORGANIZATI ON 3
AWARDED A GRANT UNDE R THE BRIDGE PROGRAM. 4
5–2705. 5
(A) THERE IS A BUSINESS RESOURCE INITIATIVE FOR DEVELOPMENTAL 6
GROWTH AND EMPOWERMENT FUND. 7
(B) THE PURPOSE OF THE FUND IS TO FUND GRANT S AWARDED UNDER THE 8
BRIDGE PROGRAM IN ACCORDANCE WITH THIS SUBTITLE. 9
(C) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 10
(D) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO 11
REVERSION UNDER § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
(E) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , AND THE 13
COMPTROLLER SHALL ACC OUNT FOR THE FUND. 14
(F) THE FUND CONSISTS OF : 15
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 16
(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTE D FOR 17
THE BENEFIT OF THE FUND. 18
(G) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 19
THE FUND MAY BE USED ONLY TO PROVIDE GRANTS UN DER THE BRIDGE 20
PROGRAM. 21
(2) UP TO 7% OF THE ANNUAL APPROP RIATION TO THE FUND MAY BE 22
USED FOR THE ADMINIS TRATION OF THE FUND AND THE BRIDGE PROGRAM. 23
(H) FOR EACH OF FISCAL YE ARS 2027 THROUGH 2032, THE GOVERNOR MAY 24
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $5,000,000 TO THE 25
FUND. 26
(I) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND IN 27
THE SAME MANNER AS O THER STATE MONEY MAY BE IN VESTED. 28
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(J) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 1
WITH THE STATE BUDGET . 2
(K) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO THE 3
GENERAL FUND OF THE STATE. 4
5–2706. 5
NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO PROHIBIT AN 6
ORGANIZATION FROM RE CEIVING FUNDS FROM A GOVERNMENT SOURCE OT HER 7
THAN THE BRIDGE PROGRAM. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
1, 2025. It shall remain effective for a period of 7 years and, at the end of June 30, 2032, 10
this Act, with no further action required by the General Assembly, shall be abrogated and 11
of no further force and effect. 12