EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0377*
SENATE BILL 377
C8 5lr1837
SB 765/24 – FIN CF 5lr1836
By: Senator A. Washington
Introduced and read first time: January 17, 2025
Assigned to: Finance
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 SENATE BILL 377
(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 SERVE 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 GU IDING BUSINES SES THROUGH THE 19
BRIDGE PROGRAM; 20
(4) IS DIRECTED BY AN IN DIVIDUAL WHO HAS COM PLETED A 21
TRAINING PROGRAM THA T: 22
(I) FOCUSED ON OPERATING A BUSINESS INCUBATOR 23
TARGETING SOCIALLY A ND ECONOMICALLY DISA DVANTAGED ENTREPRENE URS OR 24
HELPING SOCIALLY AND ECONOMICALLY DISADVANTAGED 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
SENATE BILL 377 3
3. NAVIGATING DIVERSE T ECHNOLOGY 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) (1) THE DEPARTMENT SHALL ADMINISTER THE BRIDGE PROGRAM. 20
(2) THE DEPARTMENT SHALL HIRE AT LEAST ONE FULL –TIME 21
COORDINATOR TO ADMIN ISTER THE BRIDGE PROGRAM. 22
5–2703. 23
(A) EACH FISCAL YEAR , THE DEPARTMENT SHALL AWAR D GRANTS IN 24
ACCORDANCE WITH THIS SECTION. 25
(B) (1) THE DEPARTMENT MAY AWARD A GRANT UNDER THE BRIDGE 26
PROGRAM FOR: 27
4 SENATE BILL 377
(I) PLANNING THE ESTABLISHMENT OF A Q UALIFIED 1
INCUBATOR OR PLANNIN G FOR A QUALIFIED IN CUBATOR’S LONG–TERM 2
SUSTAINABILITY ; 3
(II) CAPITAL IMPROVEMENTS , SECURING REAL ESTATE , 4
RENOVATIONS , AND THE PURCHASE OF CAPITAL EQUIPMENT TO ESTABLISH OR 5
GROW A QUALIFIED INC UBATOR; OR 6
(III) OPERATING AND PROGRA M EXPENSES ASSOCIATE D WITH 7
SUPPORTING PROGRAMS . 8
(2) EXCEPT IN THE FIRST Y EAR OF A GRANT , GRANTS AWARDED 9
UNDER THE BRIDGE PROGRAM MAY NOT BE US ED TO SUPPORT MORE T HAN 25% 10
OF THE OPERATING EXP ENSES OF A QUALIFIED INCUBATOR. 11
(3) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 12
GRANTS AWARDED UNDER THE BRIDGE PROGRAM SHALL RENEW A ND BE 13
AWARDED TO A QUALIFI ED INCUBATOR EACH FI SCAL YEAR WITHOUT FU RTHER 14
APPLICATION. 15
(II) THE RENEWAL OF A GRAN T IS SUBJECT TO THE QUALIFIED 16
INCUBATOR’S COMPLIANCE WITH TH E TERMS OF THE GRANT INCLUDING ECONOMIC 17
IMPACT METRICS PROPO SED IN THE APPLICATI ON FOR THE GRANT AND ON A 18
COMPETITIVE BASIS WI TH OTHER QUALIFIED I NCUBATORS APPLYING F OR 19
FUNDING. 20
(4) FOR ANY FISCAL YEAR , AN ORGANIZATION MAY NOT RECEIVE A 21
GRANT UNDER THE BRIDGE PROGRAM THAT IS LESS THAN $100,000 OR EXCEEDS 22
$400,000. 23
(C) (1) THE DEPARTMENT SHALL ESTABLISH A CO MPETITIVE 24
APPLICATION PROCESS FOR GRANTS MADE UNDE R THE BRIDGE PROGRAM. 25
(2) THE DEPARTMENT SHALL AWAR D AT LEAST HALF OF THE MONEY 26
APPROPRIATED TO THE BRIDGE PROGRAM TO ORGANIZATI ONS THAT 27
PARTICIPATE IN PROCU REMENTS UNDER § 14–302 OF THE STATE FINANCE AND 28
PROCUREMENT ARTICLE AND GIVE PREF ERENCE TO QUALIFIED INCUBATORS 29
THAT: 30
(I) HAVE A PROGRAM MANAG ED BY SOCIALLY OR 31
ECONOMICALLY DISADVA NTAGED INDIVIDUALS ; 32
(II) ARE LOCATED IN A FED ERALLY RECOGNIZED HU B ZONE, A 33
STATE QUALIFIED OPPOR TUNITY ZONE, OR AN UNDERSERVED CO MMUNITY; 34 SENATE BILL 377 5
(III) HAVE EXPERIENCE SUPP ORTING COMPANIES IN THE 1
START–UP STAGE; 2
(IV) SERVE COMPANIE S LED BY SOCIALLY OR ECONOMICALLY 3
DISADVANTAGED INDIVI DUALS AND THAT HAVE AN ECONOMIC IMPACT O N 4
UNDERSERVED COMMUNIT IES; OR 5
(V) HAVE ESTABLISHED A P RESENCE IN AN UNDERS ERVED 6
COMMUNITY . 7
5–2704. 8
(A) (1) THE DEPARTMENT AND A GRAN T RECIPIENT SHALL EXECUTE A 9
BRIDGE PROGRAM AGREEMENT . 10
(2) THE GRANT RECIPIENT S HALL COMPLY WITH THE TERMS OF THE 11
BRIDGE PROGRAM AGREEMENT . 12
(3) THE DEPARTMENT MAY EXERCI SE ANY REMEDY AUTHOR IZED BY 13
LAW IF THE GRANT REC IPIENT: 14
(I) VIOLATES ANY PROVISI ON OF THE BRIDGE PROGRAM 15
AGREEMENT ; OR 16
(II) DOES NOT MEET A REQU IREMENT UNDER THIS S UBTITLE. 17
(B) (1) ON OR BEFORE SEPTEMBER 1, 2027, AND EACH SEPTEMBER 1 18
THEREAFTER , AN ORGANIZATION THAT RECEIVES A GRANT UND ER THE BRIDGE 19
PROGRAM SHALL REPORT TO THE DEPARTMENT DOCUME NTING HOW THE 20
ORGANIZATION USED THE GRANT MONEY RECEIVED IN THE IMME DIATELY 21
PRECEDING FISCAL YEA R. 22
(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 23
SUBSECTION SHALL INC LUDE: 24
(I) INFORMATION ABOUT THE USE OF THE GRANT ; 25
(II) THE ECONOMIC IMPACT OF THE GRANT; AND 26
(III) ANY OTHER INFORMATIO N THE DEPARTMENT CONSIDERS 27
NECESSARY TO DETERMI NE THE EFFECTIVENESS AND IMPACT OF THE BRIDGE 28
PROGRAM. 29
6 SENATE BILL 377
(3) ON OR BEFORE DECEMBER 31, 2027, AND EACH DECEMBER 31 1
THEREAFTER , THE DEPARTMENT SHALL REPO RT TO THE GENERAL ASSEMBLY, IN 2
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE 3
FOLLOWING INFORMATIO N FOR THE PRECEDING FISCAL YEAR: 4
(I) THE NUMBER OF GRANTS AWARDED UNDER THE BRIDGE 5
PROGRAM; 6
(II) THE AMOUNT OF EACH G RANT AWARDED UNDER THIS 7
SUBTITLE; AND 8
(III) THE NAME AND LOCATIO N OF EACH ORGANIZATI ON 9
AWARDED A GRANT UNDE R THE BRIDGE PROGRAM. 10
5–2705. 11
(A) THERE IS A BUSINESS RESOURCE INITIATIVE FOR DEVELOPMENTAL 12
GROWTH AND EMPOWERMENT FUND. 13
(B) THE PURPOSE OF THE FUND IS TO FUND GRANTS AWARDED UNDER THE 14
BRIDGE PROGRAM IN ACCORDANCE WITH THIS SUBTITLE . 15
(C) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 16
(D) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO 17
REVERSION UNDER § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 18
(E) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , AND THE 19
COMPTROLLER SHALL ACC OUNT FOR THE FUND. 20
(F) THE FUND CONSISTS OF : 21
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 22
(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 23
THE BENEFIT OF THE FUND. 24
(G) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 25
THE FUND MAY BE USED ONLY TO PROVIDE GRANTS UN DER THE BRIDGE 26
PROGRAM. 27
(2) UP TO 15% OF THE ANNUAL APPROP RIATION TO THE FUND MAY 28
BE USED FOR THE ADMI NISTRATION OF THE FUND AND THE BRIDGE PROGRAM. 29
SENATE BILL 377 7
(H) FOR EACH OF FISCAL YE ARS 2027 THROUGH 2032, THE GOVERNOR MAY 1
INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF $5,000,000 TO THE 2
FUND. 3
(I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 4
THE SAME MANNER AS OTHER STATE MONEY MAY BE IN VESTED. 5
(J) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 6
WITH THE STATE BUDGET . 7
(K) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO THE 8
GENERAL FUND OF THE STATE. 9
5–2706. 10
NOTHING IN THIS SUBTITLE MAY BE CONS TRUED TO PROHIBIT AN 11
ORGANIZATION FROM RE CEIVING FUNDS FROM A GOVERNMENT SOURCE OT HER 12
THAN THE BRIDGE PROGRAM. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2025. It shall remain effective for a period of 7 years and, at the end of June 30, 2032, 15
this Act, with no further action required by the General Assembly, shall be abrogated and 16
of no further force and effect. 17