Maryland 2025 Regular Session

Maryland Senate Bill SB377 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0377
6	6
7	7	SENATE BILL 377
8	8	C8 5lr1837
9	9	SB 765/24 – FIN CF 5lr1836
10	10	By: Senator A. Washington
11	11	Introduced and read first time: January 17, 2025
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Economic Development – Business Resource Initiative for Developmental 2
19	19	Growth and Empowerment (BRIDGE) Program – Establishment 3
20	20
21	21	FOR the purpose of establishing the Business Resource Initiative for Developmental 4
22	22	Growth and Empowerment (BRIDGE) Program and Fund in the Department of 5
23	23	Commerce to provide grants to certain business entities to establish certain business 6
24	24	incubators; and generally relating to the establishment of the Business Resource 7
25	25	Initiative for Developmental Growth and Empowerment Program and Fund. 8
26	26
27	27	BY repealing and reenacting, without amendments, 9
28	28	Article – Economic Development 10
29	29	Section 1–101(a) and (c) 11
30	30	Annotated Code of Maryland 12
31	31	(2024 Replacement Volume and 2024 Supplement) 13
32	32
33	33	BY adding to 14
34	34	Article – Economic Development 15
35	35	Section 5–2701 through 5–2706 to be under the new subtitle “Subtitle 27. BRIDGE 16
36	36	Program” 17
37	37	Annotated Code of Maryland 18
38	38	(2024 Replacement Volume and 2024 Supplement) 19
39	39
40	40	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
41	41	That the Laws of Maryland read as follows: 21
42	42
43	43	Article – Economic Development 22
44	44
45	45	1–101. 23
46	46
47	47	(a) In this division the following words have the meanings indicated. 24
48	48	2 SENATE BILL 377
49	49
50	50
51	51	(c) “Department” means the Department of Commerce. 1
52	52
53	53	SUBTITLE 27. BRIDGE PROGRAM. 2
54	54
55	55	5–2701. 3
56	56
57	57	(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 4
58	58	INDICATED. 5
59	59
60	60	(B) “BRIDGE PROGRAM” MEANS THE BUSINESS RESOURCE INITIATIVE 6
61	61	FOR DEVELOPMENTAL GROWTH AND EMPOWERMENT PROGRAM. 7
62	62
63	63	(C) “FUND” MEANS THE BUSINESS RESOURCE INITIATIVE FOR 8
64	64	DEVELOPMENTAL GROWTH AND EMPOWERMENT FUND. 9
65	65
66	66	(D) “QUALIFIED INCUBATOR ” MEANS A FOR –PROFIT ORGANIZATION , 10
67	67	NONPROFIT ORGANIZATI ON, B CORPORATION , PUBLIC–PRIVATE PARTNERSHIP , OR 11
68	68	SOCIAL ENTERPRISE IN THE STATE THAT: 12
69	69
70	70	(1) PRIMARILY SERVES OR WILL PRIMARILY SERVE BUSINESSES IN 13
71	71	THE STATE; 14
72	72
73	73	(2) REQUIRES OR WILL REQ UIRE PARTICIPATING B USINESSES TO 15
74	74	ENGAGE IN A FORMAL I NCUBATOR PROGRAM DES IGNED TO ADVANCE EAR LY–STAGE 16
75	75	BUSINESSES; 17
76	76
77	77	(3) IS STAFFED OR WILL B E STAFFED BY AT LEAS T ONE INDIVIDUAL 18
78	78	DEDICATED TO MENTORI NG BUSINESSES AND GU IDING BUSINES SES THROUGH THE 19
79	79	BRIDGE PROGRAM; 20
80	80
81	81	(4) IS DIRECTED BY AN IN DIVIDUAL WHO HAS COM PLETED A 21
82	82	TRAINING PROGRAM THA T: 22
83	83
84	84	(I) FOCUSED ON OPERATING A BUSINESS INCUBATOR 23
85	85	TARGETING SOCIALLY A ND ECONOMICALLY DISA DVANTAGED ENTREPRENE URS OR 24
86	86	HELPING SOCIALLY AND ECONOMICALLY DISADVANTAGED ENTREPRENEURS 25
87	87	SECURE INVESTMENT ; AND 26
88	88
89	89	(II) INCORPORATED TOPICS INCLUDING: 27
90	90
91	91	1. DIVERSITY, EQUITY, AND INCLUSION SOLUTI ONS; 28
92	92
93	93	2. BUILDING WEALTH IN D IVERSE COMMUNITIES ; 29
94	94	SENATE BILL 377 3
95	95
96	96
97	97	3. NAVIGATING DIVERSE T ECHNOLOGY 1
98	98	ENTREPRENEURSHIP ; 2
99	99
100	100	4. RISK, LEGAL ISSUES , AND SECURITIES AND 3
101	101	EXCHANGE COMMISSION REGULATION S; 4
102	102
103	103	5. THE DUE DILIGENCE PR OCESS FOR EARLY –STAGE 5
104	104	INVESTMENTS ; 6
105	105
106	106	6. ACCOUNTING , TAXES, AND EXITS FOR COMPAN IES 7
107	107	AND FOUNDERS ; 8
108	108
109	109	7. UNDERSTANDING AND MI TIGATING CONSCIOUS A ND 9
110	110	UNCONSCIOUS BIAS ; AND 10
111	111
112	112	8. CORPORATE BOARD GOVE RNANCE, HUMAN 11
113	113	RESOURCES, PROCUREMENT , PRODUCT DEVELOPMENT , AND CORPORATE 12
114	114	INNOVATION; AND 13
115	115
116	116	(5) WAS ESTABLISHED ON O R AFTER JANUARY 1, 2012. 14
117	117
118	118	5–2702. 15
119	119
120	120	(A) (1) THERE IS A BRIDGE PROGRAM IN THE DEPARTMENT . 16
121	121
122	122	(2) THE PURPOSE OF THE BRIDGE PROGRAM IS TO PROVIDE 17
123	123	GRANTS TO QUALIFIED INCUBATORS TO ESTABLISH DIVERSE AND EFFECTIVE 18
124	124	BUSINESS INCUBATORS IN THE STATE. 19
125	125
126	126	(B) (1) THE DEPARTMENT SHALL ADMINISTER THE BRIDGE PROGRAM. 20
127	127
128	128	(2) THE DEPARTMENT SHALL HIRE AT LEAST ONE FULL –TIME 21
129	129	COORDINATOR TO ADMIN ISTER THE BRIDGE PROGRAM. 22
130	130
131	131	5–2703. 23
132	132
133	133	(A) EACH FISCAL YEAR , THE DEPARTMENT SHALL AWAR D GRANTS IN 24
134	134	ACCORDANCE WITH THIS SECTION. 25
135	135
136	136	(B) (1) THE DEPARTMENT MAY AWARD A GRANT UNDER THE BRIDGE 26
137	137	PROGRAM FOR: 27
138	138	4 SENATE BILL 377
139	139
140	140
141	141	(I) PLANNING THE ESTABLISHMENT OF A Q UALIFIED 1
142	142	INCUBATOR OR PLANNIN G FOR A QUALIFIED IN CUBATOR’S LONG–TERM 2
143	143	SUSTAINABILITY ; 3
144	144
145	145	(II) CAPITAL IMPROVEMENTS , SECURING REAL ESTATE , 4
146	146	RENOVATIONS , AND THE PURCHASE OF CAPITAL EQUIPMENT TO ESTABLISH OR 5
147	147	GROW A QUALIFIED INC UBATOR; OR 6
148	148
149	149	(III) OPERATING AND PROGRA M EXPENSES ASSOCIATE D WITH 7
150	150	SUPPORTING PROGRAMS . 8
151	151
152	152	(2) EXCEPT IN THE FIRST Y EAR OF A GRANT , GRANTS AWARDED 9
153	153	UNDER THE BRIDGE PROGRAM MAY NOT BE US ED TO SUPPORT MORE T HAN 25% 10
154	154	OF THE OPERATING EXP ENSES OF A QUALIFIED INCUBATOR. 11
155	155
156	156	(3) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 12
157	157	GRANTS AWARDED UNDER THE BRIDGE PROGRAM SHALL RENEW A ND BE 13
158	158	AWARDED TO A QUALIFI ED INCUBATOR EACH FI SCAL YEAR WITHOUT FU RTHER 14
159	159	APPLICATION. 15
160	160
161	161	(II) THE RENEWAL OF A GRAN T IS SUBJECT TO THE QUALIFIED 16
162	162	INCUBATOR’S COMPLIANCE WITH TH E TERMS OF THE GRANT INCLUDING ECONOMIC 17
163	163	IMPACT METRICS PROPO SED IN THE APPLICATI ON FOR THE GRANT AND ON A 18
164	164	COMPETITIVE BASIS WI TH OTHER QUALIFIED I NCUBATORS APPLYING F OR 19
165	165	FUNDING. 20
166	166
167	167	(4) FOR ANY FISCAL YEAR , AN ORGANIZATION MAY NOT RECEIVE A 21
168	168	GRANT UNDER THE BRIDGE PROGRAM THAT IS LESS THAN $100,000 OR EXCEEDS 22
169	169	$400,000. 23
170	170
171	171	(C) (1) THE DEPARTMENT SHALL ESTABLISH A CO MPETITIVE 24
172	172	APPLICATION PROCESS FOR GRANTS MADE UNDE R THE BRIDGE PROGRAM. 25
173	173
174	174	(2) THE DEPARTMENT SHALL AWAR D AT LEAST HALF OF THE MONEY 26
175	175	APPROPRIATED TO THE BRIDGE PROGRAM TO ORGANIZATI ONS THAT 27
176	176	PARTICIPATE IN PROCU REMENTS UNDER § 14–302 OF THE STATE FINANCE AND 28
177	177	PROCUREMENT ARTICLE AND GIVE PREF ERENCE TO QUALIFIED INCUBATORS 29
178	178	THAT: 30
179	179
180	180	(I) HAVE A PROGRAM MANAG ED BY SOCIALLY OR 31
181	181	ECONOMICALLY DISADVA NTAGED INDIVIDUALS ; 32
182	182
183	183	(II) ARE LOCATED IN A FED ERALLY RECOGNIZED HU B ZONE, A 33
184	184	STATE QUALIFIED OPPOR TUNITY ZONE, OR AN UNDERSERVED CO MMUNITY; 34 SENATE BILL 377 5
185	185
186	186
187	187
188	188	(III) HAVE EXPERIENCE SUPP ORTING COMPANIES IN THE 1
189	189	START–UP STAGE; 2
190	190
191	191	(IV) SERVE COMPANIE S LED BY SOCIALLY OR ECONOMICALLY 3
192	192	DISADVANTAGED INDIVI DUALS AND THAT HAVE AN ECONOMIC IMPACT O N 4
193	193	UNDERSERVED COMMUNIT IES; OR 5
194	194
195	195	(V) HAVE ESTABLISHED A P RESENCE IN AN UNDERS ERVED 6
196	196	COMMUNITY . 7
197	197
198	198	5–2704. 8
199	199
200	200	(A) (1) THE DEPARTMENT AND A GRAN T RECIPIENT SHALL EXECUTE A 9
201	201	BRIDGE PROGRAM AGREEMENT . 10
202	202
203	203	(2) THE GRANT RECIPIENT S HALL COMPLY WITH THE TERMS OF THE 11
204	204	BRIDGE PROGRAM AGREEMENT . 12
205	205
206	206	(3) THE DEPARTMENT MAY EXERCI SE ANY REMEDY AUTHOR IZED BY 13
207	207	LAW IF THE GRANT REC IPIENT: 14
208	208
209	209	(I) VIOLATES ANY PROVISI ON OF THE BRIDGE PROGRAM 15
210	210	AGREEMENT ; OR 16
211	211
212	212	(II) DOES NOT MEET A REQU IREMENT UNDER THIS S UBTITLE. 17
213	213
214	214	(B) (1) ON OR BEFORE SEPTEMBER 1, 2027, AND EACH SEPTEMBER 1 18
215	215	THEREAFTER , AN ORGANIZATION THAT RECEIVES A GRANT UND ER THE BRIDGE 19
216	216	PROGRAM SHALL REPORT TO THE DEPARTMENT DOCUME NTING HOW THE 20
217	217	ORGANIZATION USED THE GRANT MONEY RECEIVED IN THE IMME DIATELY 21
218	218	PRECEDING FISCAL YEA R. 22
219	219
220	220	(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 23
221	221	SUBSECTION SHALL INC LUDE: 24
222	222
223	223	(I) INFORMATION ABOUT THE USE OF THE GRANT ; 25
224	224
225	225	(II) THE ECONOMIC IMPACT OF THE GRANT; AND 26
226	226
227	227	(III) ANY OTHER INFORMATIO N THE DEPARTMENT CONSIDERS 27
228	228	NECESSARY TO DETERMI NE THE EFFECTIVENESS AND IMPACT OF THE BRIDGE 28
229	229	PROGRAM. 29
230	230	6 SENATE BILL 377
231	231
232	232
233	233	(3) ON OR BEFORE DECEMBER 31, 2027, AND EACH DECEMBER 31 1
234	234	THEREAFTER , THE DEPARTMENT SHALL REPO RT TO THE GENERAL ASSEMBLY, IN 2
235	235	ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE 3
236	236	FOLLOWING INFORMATIO N FOR THE PRECEDING FISCAL YEAR: 4
237	237
238	238	(I) THE NUMBER OF GRANTS AWARDED UNDER THE BRIDGE 5
239	239	PROGRAM; 6
240	240
241	241	(II) THE AMOUNT OF EACH G RANT AWARDED UNDER THIS 7
242	242	SUBTITLE; AND 8
243	243
244	244	(III) THE NAME AND LOCATIO N OF EACH ORGANIZATI ON 9
245	245	AWARDED A GRANT UNDE R THE BRIDGE PROGRAM. 10
246	246
247	247	5–2705. 11
248	248
249	249	(A) THERE IS A BUSINESS RESOURCE INITIATIVE FOR DEVELOPMENTAL 12
250	250	GROWTH AND EMPOWERMENT FUND. 13
251	251
252	252	(B) THE PURPOSE OF THE FUND IS TO FUND GRANTS AWARDED UNDER THE 14
253	253	BRIDGE PROGRAM IN ACCORDANCE WITH THIS SUBTITLE . 15
254	254
255	255	(C) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 16
256	256
257	257	(D) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO 17
258	258	REVERSION UNDER § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 18
259	259
260	260	(E) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , AND THE 19
261	261	COMPTROLLER SHALL ACC OUNT FOR THE FUND. 20
262	262
263	263	(F) THE FUND CONSISTS OF : 21
264	264
265	265	(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 22
266	266
267	267	(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 23
268	268	THE BENEFIT OF THE FUND. 24
269	269
270	270	(G) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 25
271	271	THE FUND MAY BE USED ONLY TO PROVIDE GRANTS UN DER THE BRIDGE 26
272	272	PROGRAM. 27
273	273
274	274	(2) UP TO 15% OF THE ANNUAL APPROP RIATION TO THE FUND MAY 28
275	275	BE USED FOR THE ADMI NISTRATION OF THE FUND AND THE BRIDGE PROGRAM. 29
276	276	SENATE BILL 377 7
277	277
278	278
279	279	(H) FOR EACH OF FISCAL YE ARS 2027 THROUGH 2032, THE GOVERNOR MAY 1
280	280	INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $5,000,000 TO THE 2
281	281	FUND. 3
282	282
283	283	(I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 4
284	284	THE SAME MANNER AS OTHER STATE MONEY MAY BE IN VESTED. 5
285	285
286	286	(J) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 6
287	287	WITH THE STATE BUDGET . 7
288	288
289	289	(K) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO THE 8
290	290	GENERAL FUND OF THE STATE. 9
291	291
292	292	5–2706. 10
293	293
294	294	NOTHING IN THIS SUBTITLE MAY BE CONS TRUED TO PROHIBIT AN 11
295	295	ORGANIZATION FROM RE CEIVING FUNDS FROM A GOVERNMENT SOURCE OT HER 12
296	296	THAN THE BRIDGE PROGRAM. 13
297	297
298	298	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
299	299	1, 2025. It shall remain effective for a period of 7 years and, at the end of June 30, 2032, 15
300	300	this Act, with no further action required by the General Assembly, shall be abrogated and 16
301	301	of no further force and effect. 17
302	302