| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | ||
| 2 | 2 | ||
| 3 | 3 | EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW. | |
| 4 | 4 | [Brackets] indicate matter deleted from existing law. | |
| 5 | - | Underlining indicates amendments to bill. | |
| 6 | - | Strike out indicates matter stricken from the bill by amendment or deleted from the law by | |
| 7 | - | amendment. | |
| 8 | 5 | *hb0942* | |
| 9 | 6 | ||
| 10 | 7 | HOUSE BILL 942 | |
| 11 | 8 | C8, C9 5lr2925 | |
| 12 | 9 | ||
| 13 | 10 | By: Delegate Schindler | |
| 14 | 11 | Introduced and read first time: January 31, 2025 | |
| 15 | 12 | Assigned to: Ways and Means | |
| 16 | - | Committee Report: Favorable with amendments | |
| 17 | - | House action: Adopted | |
| 18 | - | Read second time: March 4, 2025 | |
| 19 | 13 | ||
| 20 | - | ||
| 14 | + | A BILL ENTITLED | |
| 21 | 15 | ||
| 22 | 16 | AN ACT concerning 1 | |
| 23 | 17 | ||
| 24 | 18 | Economic Development – Tax Increment Financing – Noncontiguous Areas 2 | |
| 25 | 19 | ||
| 26 | 20 | FOR the purpose of authorizing the designation of certain noncontiguous areas as 3 | |
| 27 | 21 | development districts; authorizing the use of the Community Development 4 | |
| 28 | 22 | Administration in the Department of Housing and Community Development to issue 5 | |
| 29 | - | certain bonds; requiring the governing body of a political subdivision to limit certain 6 | |
| 30 | - | redevelopment within a development district that is a noncontiguous blighted area 7 | |
| 31 | - | for a certain purpose; and generally relating to tax increment financing for 8 | |
| 32 | - | noncontiguous areas. 9 | |
| 23 | + | certain bonds; and generally relating to tax increment financing for noncontiguous 6 | |
| 24 | + | areas. 7 | |
| 33 | 25 | ||
| 34 | - | BY renumbering | |
| 35 | - | Article – Economic Development | |
| 36 | - | Section 12–201(e) through (u) | |
| 37 | - | to be Section 12–201(f) through (v), respectively | |
| 38 | - | Annotated Code of Maryland | |
| 39 | - | (2024 Replacement Volume and 2024 Supplement) | |
| 26 | + | BY renumbering 8 | |
| 27 | + | Article – Economic Development 9 | |
| 28 | + | Section 12–201(e) through (u) 10 | |
| 29 | + | to be Section 12–201(f) through (v), respectively 11 | |
| 30 | + | Annotated Code of Maryland 12 | |
| 31 | + | (2024 Replacement Volume and 2024 Supplement) 13 | |
| 40 | 32 | ||
| 41 | - | BY repealing and reenacting, without amendments, | |
| 42 | - | Article – Economic Development | |
| 43 | - | Section 12–201(a) | |
| 44 | - | Annotated Code of Maryland | |
| 45 | - | (2024 Replacement Volume and 2024 Supplement) | |
| 33 | + | BY repealing and reenacting, without amendments, 14 | |
| 34 | + | Article – Economic Development 15 | |
| 35 | + | Section 12–201(a) 16 | |
| 36 | + | Annotated Code of Maryland 17 | |
| 37 | + | (2024 Replacement Volume and 2024 Supplement) 18 | |
| 46 | 38 | ||
| 47 | - | BY adding to 21 | |
| 48 | - | Article – Economic Development 22 2 HOUSE BILL 942 | |
| 39 | + | BY adding to 19 | |
| 40 | + | Article – Economic Development 20 | |
| 41 | + | Section 12–201(e) 21 | |
| 42 | + | Annotated Code of Maryland 22 | |
| 43 | + | (2024 Replacement Volume and 2024 Supplement) 23 | |
| 44 | + | ||
| 45 | + | BY repealing and reenacting, with amendments, 24 | |
| 46 | + | Article – Economic Development 25 | |
| 47 | + | Section 12–201(i) 26 | |
| 48 | + | Annotated Code of Maryland 27 2 HOUSE BILL 942 | |
| 49 | 49 | ||
| 50 | 50 | ||
| 51 | - | Section 12–201(e) and 12–203(d) 1 | |
| 52 | - | Annotated Code of Maryland 2 | |
| 53 | - | (2024 Replacement Volume and 2024 Supplement) 3 | |
| 51 | + | (2024 Replacement Volume and 2024 Supplement) 1 | |
| 52 | + | (As enacted by Section 1 of this Act) 2 | |
| 54 | 53 | ||
| 55 | - | BY repealing and reenacting, with amendments, 4 | |
| 56 | - | Article – Economic Development 5 | |
| 57 | - | Section 12–201(i) 6 | |
| 58 | - | Annotated Code of Maryland 7 | |
| 59 | - | (2024 Replacement Volume and 2024 Supplement) 8 | |
| 60 | - | (As enacted by Section 1 of this Act) 9 | |
| 54 | + | BY repealing and reenacting, with amendments, 3 | |
| 55 | + | Article – Economic Development 4 | |
| 56 | + | Section 12–202, 12–203(a)(1), and 12–204 5 | |
| 57 | + | Annotated Code of Maryland 6 | |
| 58 | + | (2024 Replacement Volume and 2024 Supplement) 7 | |
| 61 | 59 | ||
| 62 | - | BY repealing and reenacting, with amendments, 10 | |
| 63 | - | Article – Economic Development 11 | |
| 64 | - | Section 12–202, 12–203(a)(1), and 12–204 12–203(a)(1) 12 | |
| 65 | - | Annotated Code of Maryland 13 | |
| 66 | - | (2024 Replacement Volume and 2024 Supplement) 14 | |
| 60 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8 | |
| 61 | + | That Section(s) 12–201(e) through (u) of Article – Economic Development of the Annotated 9 | |
| 62 | + | Code of Maryland be renumbered to be Section(s) 12–201(f) through (v), respectively. 10 | |
| 67 | 63 | ||
| 68 | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15 | |
| 69 | - | That Section(s) 12–201(e) through (u) of Article – Economic Development of the Annotated 16 | |
| 70 | - | Code of Maryland be renumbered to be Section(s) 12–201(f) through (v), respectively. 17 | |
| 64 | + | SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11 | |
| 65 | + | as follows: 12 | |
| 71 | 66 | ||
| 72 | - | SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 18 | |
| 73 | - | as follows: 19 | |
| 67 | + | Article – Economic Development 13 | |
| 74 | 68 | ||
| 75 | - | ||
| 69 | + | 12–201. 14 | |
| 76 | 70 | ||
| 77 | - | ||
| 71 | + | (a) In this subtitle the following words have the meanings indicated. 15 | |
| 78 | 72 | ||
| 79 | - | (a) In this subtitle the following words have the meanings indicated. 22 | |
| 73 | + | (E) “BLIGHTED AREA ” MEANS AN AREA IN WHI CH A MAJORITY OF 16 | |
| 74 | + | BUILDINGS HAVE DECLINED IN PRO DUCTIVITY BY REASON OF OBSOLE SCENCE, 17 | |
| 75 | + | DEPRECIATION , OR OTHER CAUSES TO A N EXTENT THAT THEY N O LONGER JUSTIFY 18 | |
| 76 | + | FUNDAMENTAL REPAIRS AND ADEQUATE MAINTEN ANCE. 19 | |
| 80 | 77 | ||
| 81 | - | (E) “BLIGHTED AREA ” MEANS AN AREA IN WHI CH A MAJORITY OF 23 | |
| 82 | - | BUILDINGS HAVE DECLI NED IN PRODUCTIVITY BY REASON OF OBSOLES CENCE, 24 | |
| 83 | - | DEPRECIATION , OR OTHER CAUSES TO AN E XTENT THAT THEY NO L ONGER JUSTIFY 25 | |
| 84 | - | FUNDAMENTAL REPAIRS AND ADEQUATE MAINTEN ANCE. 26 | |
| 78 | + | (i) (1) “Development district” means a contiguous OR NONCONTIGUOUS area 20 | |
| 79 | + | designated by a resolution. 21 | |
| 85 | 80 | ||
| 86 | - | (i) (1) “Development district” means a contiguous OR NONCONTIGUOUS area 27 | |
| 87 | - | designated by a resolution. 28 | |
| 81 | + | (2) “Development district” includes an extraordinary development district. 22 | |
| 88 | 82 | ||
| 89 | - | ||
| 83 | + | 12–202. 23 | |
| 90 | 84 | ||
| 91 | - | ||
| 85 | + | (a) (1) This subtitle is self–executing. 24 | |
| 92 | 86 | ||
| 93 | - | (a) (1) This subtitle is self–executing. 31 | |
| 87 | + | (2) A political subdivision need not amend its charter to exercise the 25 | |
| 88 | + | powers granted by this subtitle. 26 | |
| 94 | 89 | ||
| 95 | - | (2) A political subdivision need not amend its charter to exercise the 32 | |
| 96 | - | powers granted by this subtitle. 33 | |
| 90 | + | (b) (1) [This] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 27 | |
| 91 | + | SUBSECTION, THIS subtitle does not apply in Baltimore City. 28 | |
| 92 | + | ||
| 93 | + | (2) THE PROVISIONS OF §§ 12–203(A)(1) AND 12–204(G) OF THIS 29 | |
| 94 | + | SUBTITLE PERTAINING TO NONCON TIGUOUS BLIGHTED ARE AS APPLY IN 30 | |
| 95 | + | BALTIMORE CITY. 31 | |
| 97 | 96 | HOUSE BILL 942 3 | |
| 98 | 97 | ||
| 99 | 98 | ||
| 100 | - | (b) (1) [This] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 1 | |
| 101 | - | SUBSECTION, THIS subtitle does not apply in Baltimore City. 2 | |
| 99 | + | 12–203. 1 | |
| 102 | 100 | ||
| 103 | - | (2) THE PROVISIONS OF §§ 12–203(A)(1) AND 12–204(G) OF THIS 3 | |
| 104 | - | SUBTITLE PERTAINING TO NONCONTIGUOUS BLI GHTED AREAS APPLY IN 4 | |
| 105 | - | BALTIMORE CITY. 5 | |
| 101 | + | (a) Before issuing bonds, the governing body of the political subdivision shall: 2 | |
| 106 | 102 | ||
| 107 | - | ||
| 103 | + | (1) by resolution: 3 | |
| 108 | 104 | ||
| 109 | - | (a) Before issuing bonds, the governing body of the political subdivision shall: 7 | |
| 105 | + | (i) designate a contiguous area within its jurisdiction as a 4 | |
| 106 | + | development district; 5 | |
| 110 | 107 | ||
| 111 | - | (1) by resolution: 8 | |
| 108 | + | (ii) DESIGNATE A NONCONTI GUOUS BLIGHTED AREA WITHIN 6 | |
| 109 | + | ITS JURISDICTION AS A DEVELOPMENT DISTRI CT; 7 | |
| 112 | 110 | ||
| 113 | - | ( | |
| 114 | - | ||
| 111 | + | (III) identify an area that has been designated a sustainable 8 | |
| 112 | + | community; or 9 | |
| 115 | 113 | ||
| 116 | - | (ii) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION, DESIGNATE 11 | |
| 117 | - | A NONCONTIGUOUS BLIG HTED AREA WITHIN ITS JURISDICTION AS A DEVELOPMENT 12 | |
| 118 | - | DISTRICT; 13 | |
| 114 | + | [(iii)] (IV) identify an area that has been designated a RISE zone; 10 | |
| 119 | 115 | ||
| 120 | - | (III) identify an area that has been designated a sustainable 14 | |
| 121 | - | community; or 15 | |
| 116 | + | 12–204. 11 | |
| 122 | 117 | ||
| 123 | - | [(iii)] (IV) identify an area that has been designated a RISE zone; 16 | |
| 118 | + | (a) Notwithstanding any limitation of law, an issuer may issue bonds from time 12 | |
| 119 | + | to time to finance the development of an industrial, commercial, or residential area. 13 | |
| 124 | 120 | ||
| 125 | - | (D) IF THE DEVELOPMENT DI STRICT IS A NONCONTI GUOUS BLIGHTED 17 | |
| 126 | - | AREA, THE GOVERNI NG BODY OF THE POLIT ICAL SUBDIVISION SHA LL LIMIT THE 18 | |
| 127 | - | REDEVELOPMENT OF NON CONTIGUOUS PARCELS W ITHIN THE DEVELOPMEN T 19 | |
| 128 | - | DISTRICT FOR AFFORDA BLE HOUSING THAT IS DEED RESTRICTED TO H OUSEHOLDS 20 | |
| 129 | - | WHOSE HOUSEHOLD INCO ME DOES NOT EXCEED 80% OF AREA MEDIAN INCOM E. 21 | |
| 121 | + | (b) To issue bonds under this subtitle, the governing body of a political subdivision 14 | |
| 122 | + | shall adopt an ordinance that: 15 | |
| 130 | 123 | ||
| 131 | - | ||
| 124 | + | (1) describes the proposed undertaking; and 16 | |
| 132 | 125 | ||
| 133 | - | (a) Notwithstanding any limitation of law, an issuer may issue bonds from time 23 | |
| 134 | - | to time to finance the development of an industrial, commercial, or residential area. 24 | |
| 126 | + | (2) states: 17 | |
| 135 | 127 | ||
| 136 | - | ( | |
| 137 | - | ||
| 128 | + | (i) that the governing body has complied with §§ 12–203 and 18 | |
| 129 | + | 12–208(c) and (d) of this subtitle; 19 | |
| 138 | 130 | ||
| 139 | - | ( | |
| 131 | + | (ii) the maximum principal amount of the bonds; and 20 | |
| 140 | 132 | ||
| 141 | - | ( | |
| 133 | + | (iii) the maximum rate of interest on the bonds. 21 | |
| 142 | 134 | ||
| 143 | - | (i) that the governing body has complied with §§ 12–203 and 29 | |
| 144 | - | 12–208(c) and (d) of this subtitle; 30 | |
| 135 | + | (c) The ordinance may specify the following for bonds issued to carry out the 22 | |
| 136 | + | financing of the proposed undertaking: 23 | |
| 137 | + | ||
| 138 | + | (1) the principal amount; 24 | |
| 139 | + | ||
| 140 | + | (2) the rate of interest; 25 | |
| 141 | + | ||
| 142 | + | (3) the manner and terms of sale; 26 | |
| 143 | + | ||
| 144 | + | (4) the time of execution, issuance, and delivery; 27 | |
| 145 | 145 | 4 HOUSE BILL 942 | |
| 146 | 146 | ||
| 147 | 147 | ||
| 148 | - | ( | |
| 148 | + | (5) the form and denomination; 1 | |
| 149 | 149 | ||
| 150 | - | (iii) the maximum rate of interest on the bonds. 2 | |
| 150 | + | (6) the manner in which, and the times and places at which principal and 2 | |
| 151 | + | interest shall be paid; 3 | |
| 151 | 152 | ||
| 152 | - | (c) The ordinance may specify the following for bonds issued to carry out the 3 | |
| 153 | - | financing of the proposed undertaking: 4 | |
| 153 | + | (7) conditions for redemption before maturity; or 4 | |
| 154 | 154 | ||
| 155 | - | (1) the principal amount; 5 | |
| 155 | + | (8) other provisions consistent with this subtitle that the governing body of 5 | |
| 156 | + | the political subdivision determines are necessary or desirable. 6 | |
| 156 | 157 | ||
| 157 | - | (2) the rate of interest; 6 | |
| 158 | + | (d) The revenue authority of Prince George’s County may issue bonds in 7 | |
| 159 | + | accordance with an ordinance adopted by the governing body of Prince George’s County. 8 | |
| 158 | 160 | ||
| 159 | - | (3) the manner and terms of sale; 7 | |
| 161 | + | (e) The ordinance may specify the items listed in subsection (c) of this section or 9 | |
| 162 | + | may authorize: 10 | |
| 160 | 163 | ||
| 161 | - | ( | |
| 164 | + | (1) the finance board to specify those items by resolution or ordinance; or 11 | |
| 162 | 165 | ||
| 163 | - | ( | |
| 166 | + | (2) the chief executive to specify those items by executive order. 12 | |
| 164 | 167 | ||
| 165 | - | (6) the manner in which, and the times and places at which principal and 10 | |
| 166 | - | interest shall be paid; 11 | |
| 168 | + | (f) (1) Except as provided in paragraph (2) of this subsection, neither an 13 | |
| 169 | + | ordinance authorizing the bonds nor an ordinance, resolution, or executive order issued, 14 | |
| 170 | + | passed, or adopted under this section may be subject to referendum because of any other 15 | |
| 171 | + | State or local law. 16 | |
| 167 | 172 | ||
| 168 | - | (7) conditions for redemption before maturity; or 12 | |
| 173 | + | (2) An ordinance that authorizes the pledge of the full faith and credit of a 17 | |
| 174 | + | political subdivision to the payment of principal and interest on a bond is subject to any 18 | |
| 175 | + | applicable right to referendum. 19 | |
| 169 | 176 | ||
| 170 | - | (8) other provisions consistent with this subtitle that the governing body of 13 | |
| 171 | - | the political subdivision determines are necessary or desirable. 14 | |
| 177 | + | (G) IF THE DEVELOPMENT DI STRICT IS A NONCONTIGUOUS BLIGHTED 20 | |
| 178 | + | AREA, THE GOVERNING BODY O F A POLITICAL SUBDIV ISION MAY UTILIZE THE 21 | |
| 179 | + | COMMUNITY DEVELOPMENT ADMINISTRATION WITHIN THE DEPARTMENT OF 22 | |
| 180 | + | HOUSING AND COMMUNITY DEVELOPMENT TO ISSUE BONDS AUTHORIZED BY AN 23 | |
| 181 | + | ORDINANCE ADOPTED UN DER THIS SECTION . 24 | |
| 172 | 182 | ||
| 173 | - | (d) The revenue authority of Prince George’s County may issue bonds in 15 | |
| 174 | - | accordance with an ordinance adopted by the governing body of Prince George’s County. 16 | |
| 175 | - | ||
| 176 | - | (e) The ordinance may specify the items listed in subsection (c) of this section or 17 | |
| 177 | - | may authorize: 18 | |
| 178 | - | ||
| 179 | - | (1) the finance board to specify those items by resolution or ordinance; or 19 | |
| 180 | - | ||
| 181 | - | (2) the chief executive to specify those items by executive order. 20 | |
| 182 | - | ||
| 183 | - | (f) (1) Except as provided in paragraph (2) of this subsection, neither an 21 | |
| 184 | - | ordinance authorizing the bonds nor an ordinance, resolution, or executive order issued, 22 | |
| 185 | - | passed, or adopted under this section may be subject to referendum because of any other 23 | |
| 186 | - | State or local law. 24 | |
| 187 | - | ||
| 188 | - | (2) An ordinance that authorizes the pledge of the full faith and credit of a 25 | |
| 189 | - | political subdivision to the payment of principal and interest on a bond is subject to any 26 | |
| 190 | - | applicable right to referendum. 27 | |
| 191 | - | ||
| 192 | - | (G) IF THE DEVELOPMENT DI STRICT IS A NONCONTI GUOUS BLIGHTED 28 | |
| 193 | - | AREA, THE GOVERNING BODY O F A POLITICAL SUBDIV ISION MAY UTILIZE TH E 29 | |
| 194 | - | COMMUNITY DEVELOPMENT ADMINISTRATION WITHIN THE DEPARTMENT OF 30 HOUSE BILL 942 5 | |
| 195 | - | ||
| 196 | - | ||
| 197 | - | HOUSING AND COMMUNITY DEVELOPMENT TO ISSUE BONDS AUTHORIZED B Y AN 1 | |
| 198 | - | ORDINANCE ADOPTED UN DER THIS SECTION . 2 | |
| 199 | - | ||
| 200 | - | SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 3 | |
| 201 | - | October 1, 2025. 4 | |
| 202 | - | ||
| 203 | - | ||
| 204 | - | ||
| 205 | - | ||
| 206 | - | Approved: | |
| 207 | - | ________________________________________________________________________________ | |
| 208 | - | Governor. | |
| 209 | - | ________________________________________________________________________________ | |
| 210 | - | Speaker of the House of Delegates. | |
| 211 | - | ________________________________________________________________________________ | |
| 212 | - | President of the Senate. | |
| 183 | + | SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 25 | |
| 184 | + | October 1, 2025. 26 |