Maryland 2025 Regular Session

Maryland Senate Bill SB427 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING 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		sb0427
9	6
10	7		SENATE BILL 427
11	8		C8, Q3, F5 5lr0456
12	9		CF HB 498
13	10		By: The President (By Request – Administration) and Senators Brooks, Charles,
14	11		Ellis, Gile, Henson, Lam, Watson, and West
15	12		Introduced and read first time: January 20, 2025
16	13		Assigned to: Budget and Taxation and Finance
17		-	Committee Report: Favorable with amendments
18		-	Senate action: Adopted with floor amendments
19		-	Read second time: March 17, 2025
20		-
21		-	CHAPTER ______
	14	+
	15	+	A BILL ENTITLED
22	16
23	17		AN ACT concerning 1
24	18
25	19		Economic Development – Delivering Economic Competitiveness and Advancing 2
26	20		Development Efforts (DECADE) Act 3
27	21
28	22		FOR the purpose of requiring the Department of Commerce to evaluate the potential 4
29	23		employment and economic growth of the State’s industry sectors and establish a 5
30	24		certain list of industry sectors and activities; repealing the Maryland Economic 6
31	25		Development Commission and Commerce Subcabinet; altering and staggering the 7
32	26		terms of certain appointed members of the Maryland Life Sciences Advisory Board 8
33	27		in a certain manner; altering the designation, administration, and purposes of and 9
34	28		eligibility for certain economic development programs; altering the definition of 10
35	29		“MEDCO obligation” under the Tax Increment Financing Act to include certain 11
36	30		projects under the Build Our Future Program; altering the purposes for which 12
37	31		certain bond proceeds may be used under the Tax Increment Financing Act; 13
38	32		requiring the State Department of Assessments and Taxation to waive certain filing 14
39	33		fees for certain businesses located within a Regional Institution Strategic Enterprise 15
40		-	zone modifying the membership of the board of the Maryland Economic Development 16
41		-	Commission; redesignating the Maryland Economic Development Assistance 17
42		-	Authority to be the Maryland Economic Competitiveness Fund; repealing certain 18
43		-	limits on assistance offered by the Competitiveness Fund; repealing the Maryland 19
44		-	Small Business Development Financing Authority and certain related funds ; 20
45		-	altering eligibility for, terms of, and types of financial assistance from the Child Care 21
46		-	Capital Support Revolving Loan Fund; altering the purposes of the Seed Community 22
47		-	Development Anchor Institution Fund to include providing certain financial 23
48		-	assistance for projects in certain RISE zone catchment areas and requiring the 24 2 SENATE BILL 427
49		-
50		-
51		-	Department of Housing and Community Development to prioritize certain 1
52		-	applications located in active RISE zones; redesignating the Economic Development 2
53		-	Opportunities Program Account to be the Strategic Closing Fund within the 3
54		-	Department of Commerce; altering the purposes for and methods by which the 4
55		-	Strategic Closing Fund may be utilized; altering the distribution of certain video 5
56		-	lottery terminal proceeds; altering the termination date of the Build Our Future 6
57		-	Grant Pilot Program and Job Creation Tax Credit, Research and Development Tax 7
58		-	Credit, and Innovation Investment Incentive Tax Credit programs; providing for the 8
59		-	termination of the One Maryland Economic Development Tax Credit Program on a 9
60		-	certain date; altering eligibility for and the calculation of certain tax credits; allowing 10
61		-	a qualified investor that is a pass–through entity that pays a certain income tax on 11
62		-	behalf of its members to receive and allocate in any manner a credit or refund of a 12
63		-	credit under the Biotechnology Investment Incentive Tax Credit and Innovation 13
64		-	Investment Incentive Tax Credit programs; making the film production activity tax 14
65		-	credit transferable; authorizing a qualified film production entity to amend its 15
66		-	application for the film production activity tax credit under certain circumstances; 16
67		-	altering the aggregate amount of film production activity tax credit certificates that 17
68		-	the Secretary of Commerce may issue each fiscal year; repealing a certain limit on 18
69		-	the aggregate amount of tax credit certificates the Secretary may issue for a single 19
70		-	film production activity; repealing a credit against the State income tax for certain 20
71		-	costs related to federal security clearances; and generally relating to economic 21
72		-	development and economic development incentives. 22
73		-
74		-	BY renumbering 23
75		-	Article – Economic Development 24
76		-	Section 5–1401 through 5–1410 and the subtitle “Subtitle 14. Regional Institution 25
77		-	Strategic Enterprise Zone Program”; and 5–2301 through 5–2307 and the 26
78		-	subtitle “Subtitle 23. Build Our Future Grant Pilot Program” 27
79		-	to be Section 10–137 through 10–146 and the part “Part II. Regional Institution 28
80		-	Strategic Enterprise Zone Program”; and 10–149 through 10–155 and the part 29
81		-	“Part III. Build Our Future Grant Pilot Program”, respectively 30
82		-	Annotated Code of Maryland 31
83		-	(2024 Replacement Volume and 2024 Supplement) 32
84		-
85		-	BY repealing and reenacting, with amendments, 33
86		-	Article – Economic Development 34
87		-	Section 2–113, 2–116, 2.5–106, 3–203, 3–401, 3–402, 3–411, 5–102, and 5–205; 35
88		-	5–301 to be under the amended subtitle “Subtitle 3. Maryland Economic 36
89		-	Competitiveness Fund”; 5–310 to be under the amended part “Part III. 37
90		-	Maryland Economic Competitiveness Fund”; 5–319 through 5–321, 5–320, 38
91		-	5–321, 5–324, 5–325, 5–329, and 5–338(d); 5–501 to be under the amended 39
92		-	subtitle “Subtitle 5. Maryland Economic Inclusion Fund”; 5–502; 5–505 to be 40
93		-	under the amended part “Part II. Maryland Economic Inclusion Fund”; 5–517 41
94		-	to be under the amended part “Part III. Small Business Development Contract 42
95		-	Financing Program”; 5–518, 5–524 through 5–528, and 5–530; 5–533 to be 43
96		-	under the amended part “Part IV. Small Business Development Guaranty 44
97		-	Program”; 5–534, 5–539 through 5–543, 5–545, 5–546, 5–549 through 5–551, 45 SENATE BILL 427 3
98		-
99		-
100		-	5–553, 5–555 through 5–558, 5–561, 5–562, 5–566 through 5–575, 6–1007, 1
101		-	5–1001, 5–1002, 5–1006, and 5–1204(a)(1)(ii)4.; 5–1501(a) to be under the 2
102		-	amended subtitle “Subtitle 15. Reinvest for Success Account”; and 5–2402, 3
103		-	6–309, 6–601, 6–604, 6–614, 6–1007 10–106, 10–115, 10–133, 10–408(a), 4
104		-	10–415, 10–470, and 10–528, 12–201(k) and (p), 12–207(b) and (e), and 5
105		-	16–102(d)(2) 6
106		-	Annotated Code of Maryland 7
107		-	(2024 Replacement Volume and 2024 Supplement) 8
108		-
109		-	BY repealing 9
110		-	Article – Economic Development 10
111		-	Section 2.5–201 through 2.5–207 and the subtitle “Subtitle 2. Maryland Economic 11
112		-	Development Commission”; 3–408 through 3–410; 5–305 through 5–307 and 12
113		-	the part “Part II. Maryland Economic Development Assistance Authority”; 13
114		-	and 5–506 through 5–514, 5–519 through 5–523, 5–529, 5–535 through 5–538, 14
115		-	5–544, 5–552, 5–554, 5–559, and 5–563 through 5–565, 5–1003 through 15
116		-	5–1005, and 5–1007 16
117		-	Annotated Code of Maryland 17
118		-	(2024 Replacement Volume and 2024 Supplement) 18
119		-
120		-	BY repealing and reenacting, without amendments, 19
121		-	Article – Economic Development 20
122		-	Section 3–201, 3–202, 3–403, 5–201, 5–203, 5–311 through 5–316, 5–322, 5–323, 21
123		-	5–323, 5–401(a), (b), and (p), 5–2401, 10–101(a), (b), and (d), 10–401(a) and 22
124		-	(c), 10–501(a) and (f), 12–201(a), and 12–207(a) 10–401(a) and (c), and 23
125		-	10–501(a) and (f) 24
	34	+	zone; altering eligibility for, terms of, and types of financial assistance from the Child 16
	35	+	Care Capital Support Revolving Loan Fund; altering the purposes of the Seed 17
	36	+	Community Development Anchor Institution Fund to include prov iding certain 18
	37	+	financial assistance for projects in certain RISE zone catchment areas and requiring 19
	38	+	the Department of Housing and Community Development to prioritize certain 20
	39	+	applications located in active RISE zones; redesignating the Economic Development 21
	40	+	Opportunities Program Account to be the Strategic Closing Fund within the 22
	41	+	Department of Commerce; altering the purposes for and methods by which the 23
	42	+	Strategic Closing Fund may be utilized; altering the distribution of certain video 24
	43	+	lottery terminal proceeds; altering the termination date of the Build Our Future 25
	44	+	Grant Pilot Program and Job Creation Tax Credit, Research and Development Tax 26
	45	+	Credit, and Innovation Investment Incentive Tax Credit programs; providing for the 27
	46	+	termination of the One Maryland Economic Development Tax Credit Program on a 28
	47	+	certain date; altering eligibility for and the calculation of certain tax credits; allowing 29 2 SENATE BILL 427
	48	+
	49	+
	50	+	a qualified investor that is a pass–through entity that pays a certain income tax on 1
	51	+	behalf of its members to receive and allocate in any manner a credit or refund of a 2
	52	+	credit under the Biotechnology Investment Incentive Tax Credit and Innovation 3
	53	+	Investment Incentive Tax Credit programs; altering the aggregate amount of film 4
	54	+	production activity tax credit certificates that the Secretary of Commerce may issue 5
	55	+	each fiscal year; repealing a certain limit on the aggregate amount of tax credit 6
	56	+	certificates the Secretary may issue for a single film production activity; repealing a 7
	57	+	credit against the State income tax for certain costs related to federal security 8
	58	+	clearances; and generally relating to economic development and economic 9
	59	+	development incentives. 10
	60	+
	61	+	BY renumbering 11
	62	+	Article – Economic Development 12
	63	+	Section 5–1401 through 5–1410 and the subtitle “Subtitle 14. Regional Institution 13
	64	+	Strategic Enterprise Zone Program”; and 5–2301 through 5–2307 and the 14
	65	+	subtitle “Subtitle 23. Build Our Future Grant Pilot Program” 15
	66	+	to be Section 10–137 through 10–146 and the part “Part II. Regional Institution 16
	67	+	Strategic Enterprise Zone Program”; and 10–149 through 10–155 and the part 17
	68	+	“Part III. Build Our Future Grant Pilot Program”, respectively 18
	69	+	Annotated Code of Maryland 19
	70	+	(2024 Replacement Volume and 2024 Supplement) 20
	71	+
	72	+	BY repealing and reenacting, with amendments, 21
	73	+	Article – Economic Development 22
	74	+	Section 2–113, 2–116, 2.5–106, 3–203, 3–401, 3–402, 3–411, 5–102, and 5–205; 23
	75	+	5–301 to be under the amended subtitle “Subtitle 3. Maryland Economic 24
	76	+	Competitiveness Fund”; 5–310 to be under the amended part “Part III. 25
	77	+	Maryland Economic Competitiveness Fund”; 5–319 through 5–321, 5–324, 26
	78	+	5–325, 5–329, and 5–338(d); 5–501 to be under the amended subtitle “Subtitle 27
	79	+	5. Maryland Economic Inclusion Fund”; 5–502; 5–505 to be under the 28
	80	+	amended part “Part II. Maryland Economic Inclusion Fund”; 5–517 to be 29
	81	+	under the amended part “Part III. Small Business Development Contract 30
	82	+	Financing Program”; 5–518, 5–524 through 5–528, and 5–530; 5–533 to be 31
	83	+	under the amended part “Part IV. Small Business Development Guaranty 32
	84	+	Program”; 5–534, 5–539 through 5–543, 5–545, 5–546, 5–549 through 5–551, 33
	85	+	5–553, 5–555 through 5–558, 5–561, 5–562, 5–566 through 5–575, 5–1001, 34
	86	+	5–1002, 5–1006, and 5–1204(a)(1)(ii)4.; 5–1501(a) to be under the amended 35
	87	+	subtitle “Subtitle 15. Reinvest for Success Account”; and 5–2402, 6–309, 36
	88	+	6–601, 6–604, 6–614, 6–1007, 10–115, 10–133, 10–408(a), 10–415, 10–470, 37
	89	+	10–528, 12–201(k) and (p), 12–207(b) and (e), and 16–102(d)(2) 38
	90	+	Annotated Code of Maryland 39
	91	+	(2024 Replacement Volume and 2024 Supplement) 40
	92	+
	93	+	BY repealing 41
	94	+	Article – Economic Development 42
	95	+	Section 2.5–201 through 2.5–207 and the subtitle “Subtitle 2. Maryland Economic 43
	96	+	Development Commission”; 3–408 through 3–410; 5–305 through 5–307 and 44 SENATE BILL 427 3
	97	+
	98	+
	99	+	the part “Part II. Maryland Economic Development Assistance Authority”; 1
	100	+	and 5–506 through 5–514, 5–519 through 5–523, 5–529, 5–535 through 5–538, 2
	101	+	5–544, 5–552, 5–554, 5–559, 5–563 through 5–565, 5–1003 through 5–1005, 3
	102	+	and 5–1007 4
	103	+	Annotated Code of Maryland 5
	104	+	(2024 Replacement Volume and 2024 Supplement) 6
	105	+
	106	+	BY repealing and reenacting, without amendments, 7
	107	+	Article – Economic Development 8
	108	+	Section 3–201, 3–202, 3–403, 5–201, 5–203, 5–311 through 5–316, 5–322, 5–323, 9
	109	+	5–401(a), (b), and (p), 5–2401, 10–101(a), (b), and (d), 10–401(a) and (c), 10
	110	+	10–501(a) and (f), 12–201(a), and 12–207(a) 11
	111	+	Annotated Code of Maryland 12
	112	+	(2024 Replacement Volume and 2024 Supplement) 13
	113	+
	114	+	BY adding to 14
	115	+	Article – Economic Development 15
	116	+	Section 5–464, 5–506 through 5–508, and 6–407; and the new part designation “Part 16
	117	+	I. Maryland Economic Development Corporation” to immediately precede 17
	118	+	Section 10–101 18
	119	+	Annotated Code of Maryland 19
	120	+	(2024 Replacement Volume and 2024 Supplement) 20
	121	+
	122	+	BY repealing and reenacting, with amendments, 21
	123	+	Article – Economic Development 22
	124	+	Section 10–137, 10–139 through 10–146, 10–149(a), and 10–150 through 10–155 23
	125	+	Annotated Code of Maryland 24
	126	+	(2024 Replacement Volume and 2024 Supplement) 25
	127	+	(As enacted by Section 1 of this Act) 26
	128	+
	129	+	BY repealing and reenacting, without amendments, 27
	130	+	Article – Economic Development 28
	131	+	Section 10–138 29
	132	+	Annotated Code of Maryland 30
	133	+	(2024 Replacement Volume and 2024 Supplement) 31
	134	+	(As enacted by Section 1 of this Act) 32
	135	+
	136	+	BY adding to 33
	137	+	Article – Corporations and Associations 34
	138	+	Section 1–203(b)(14) 35
	139	+	Annotated Code of Maryland 36
	140	+	(2014 Replacement Volume and 2024 Supplement) 37
	141	+
	142	+	BY repealing and reenacting, with amendments, 38
	143	+	Article – Corporations and Associations 39
	144	+	Section 1–203(b)(14) 40
	145	+	Annotated Code of Maryland 41 4 SENATE BILL 427
	146	+
	147	+
	148	+	(2014 Replacement Volume and 2024 Supplement) 1
	149	+
	150	+	BY repealing and reenacting, with amendments, 2
	151	+	Article – Education 3
	152	+	Section 9.5–113.1 4
	153	+	Annotated Code of Maryland 5
	154	+	(2022 Replacement Volume and 2024 Supplement) 6
	155	+
	156	+	BY repealing and reenacting, with amendments, 7
	157	+	Article – Housing and Community Development 8
	158	+	Section 4–509, 6–404, and 6.5–107(e)(2) 9
	159	+	Annotated Code of Maryland 10
	160	+	(2019 Replacement Volume and 2024 Supplement) 11
	161	+
	162	+	BY repealing and reenacting, with amendments, 12
	163	+	Article – State Finance and Procurement 13
	164	+	Section 7–314 14
	165	+	Annotated Code of Maryland 15
	166	+	(2021 Replacement Volume and 2024 Supplement) 16
	167	+
	168	+	BY repealing and reenacting, with amendments, 17
	169	+	Article – State Government 18
	170	+	Section 9–1A–26(c)(2)(i) and 9–1A–27(a)(6) and (c)(1)(v)1. 19
	171	+	Annotated Code of Maryland 20
	172	+	(2021 Replacement Volume and 2024 Supplement) 21
	173	+
	174	+	BY repealing 22
	175	+	Article – State Government 23
	176	+	Section 9–3101 through 9–3104 and the subtitle “Subtitle 31. Commerce Subcabinet” 24
126	177		Annotated Code of Maryland 25
127		-	(2024 Replacement Volume and 2024 Supplement) 26
128		-
129		-	BY adding to 27
130		-	Article – Economic Development 28
131		-	Section 5–464, 5–506 through 5–508 and 5–507, and 6–407; and the new part 29
132		-	designation “Part I. Maryland Economic Development Corporation” to 30
133		-	immediately precede Section 10–101 31
134		-	Annotated Code of Maryland 32
135		-	(2024 Replacement Volume and 2024 Supplement) 33
136		-
137		-	BY repealing and reenacting, with amendments, 34
138		-	Article – Economic Development 35
139		-	Section 10–137, 10–139 through 10–146, 10–149(a), and 10–150 through 10–155 36
140		-	Annotated Code of Maryland 37
141		-	(2024 Replacement Volume and 2024 Supplement) 38
142		-	(As enacted by Section 1 of this Act) 39
143		-
144		-	BY repealing and reenacting, without amendments, 40
145		-	Article – Economic Development 41
146		-	Section 10–138 42 4 SENATE BILL 427
147		-
148		-
149		-	Annotated Code of Maryland 1
150		-	(2024 Replacement Volume and 2024 Supplement) 2
151		-	(As enacted by Section 1 of this Act) 3
152		-
153		-	BY adding to 4
154		-	Article – Corporations and Associations 5
155		-	Section 1–203(b)(14) 6
156		-	Annotated Code of Maryland 7
157		-	(2014 Replacement Volume and 2024 Supplement) 8
158		-
159		-	BY repealing and reenacting, with amendments, 9
160		-	Article – Corporations and Associations 10
161		-	Section 1–203(b)(14) 11
162		-	Annotated Code of Maryland 12
163		-	(2014 Replacement Volume and 2024 Supplement) 13
164		-
165		-	BY repealing and reenacting, with amendments, 14
166		-	Article – Education 15
167		-	Section 9.5–113.1 16
168		-	Annotated Code of Maryland 17
169		-	(2022 Replacement Volume and 2024 Supplement) 18
170		-
171		-	BY repealing and reenacting, with amendments, 19
172		-	Article – Housing and Community Development 20
173		-	Section 4–509, 6–404, 6–404 and 6.5–107(e)(2) 21
174		-	Annotated Code of Maryland 22
175		-	(2019 Replacement Volume and 2024 Supplement) 23
176		-
177		-	BY repealing and reenacting, with amendments, 24
178		-	Article – State Finance and Procurement 25
179		-	Section 7–314 26
180		-	Annotated Code of Maryland 27
181		-	(2021 Replacement Volume and 2024 Supplement) 28
182		-
183		-	BY repealing and reenacting, with amendments, 29
184		-	Article – State Government 30
185		-	Section 9–1A–26(c)(2)(i) and 9–1A–27(a)(6) and (c)(1)(v)1. 31
186		-	Annotated Code of Maryland 32
187		-	(2021 Replacement Volume and 2024 Supplement) 33
188		-
189		-	BY repealing and reenacting, without amendments, 34
190		-	Article – State Government 35
191		-	Section 9–1A–27(c)(1)(v)1. 36
192		-	Annotated Code of Maryland 37
193		-	(2021 Replacement Volume and 2024 Supplement) 38
194		-
195		-	BY repealing 39 SENATE BILL 427 5
196		-
197		-
198		-	Article – State Government 1
199		-	Section 9–3101 through 9–3104 and the subtitle “Subtitle 31. Commerce Subcabinet” 2
200		-	Annotated Code of Maryland 3
201		-	(2021 Replacement Volume and 2024 Supplement) 4
202		-
203		-	BY repealing and reenacting, without amendments, 5
204		-	Article – Tax – Property 6
205		-	Section 9–103.1(a)(1) 7
	178	+	(2021 Replacement Volume and 2024 Supplement) 26
	179	+
	180	+	BY repealing and reenacting, without amendments, 27
	181	+	Article – Tax – Property 28
	182	+	Section 9–103.1(a)(1) 29
	183	+	Annotated Code of Maryland 30
	184	+	(2019 Replacement Volume and 2024 Supplement) 31
	185	+
	186	+	BY repealing and reenacting, with amendments, 32
	187	+	Article – Tax – Property 33
	188	+	Section 9–103.1(a)(7), (c)(6)(i), (e), and (f) and 9–229(c)(2) and (g) 34
	189	+	Annotated Code of Maryland 35
	190	+	(2019 Replacement Volume and 2024 Supplement) 36
	191	+
	192	+	BY repealing and reenacting, with amendments, 37
	193	+	Chapter 430 of the Acts of the General Assembly of 2023 38
	194	+	Section 3 39 SENATE BILL 427 5
	195	+
	196	+
	197	+
	198	+	BY repealing and reenacting, with amendments, 1
	199	+	Chapter 431 of the Acts of the General Assembly of 2023 2
	200	+	Section 3 3
	201	+
	202	+	BY repealing and reenacting, without amendments, 4
	203	+	Article – Tax – General 5
	204	+	Section 10–702(a)(1), 10–725(a) and (b)(2), 10–730(a)(1), (4), and (7) and (b), and 6
	205	+	10–733(a) and (b)(2) and (3)(ii)2.J. 7
206	206		Annotated Code of Maryland 8
207		-	(~~2019~~ Replacement Volume and 2024 Supplement) 9
	207	+	(2022 Replacement Volume and 2024 Supplement) 9
208	208
209	209		BY repealing and reenacting, with amendments, 10
210		-	Article – Tax – Property 11
211		-	Section 9–103.1(a)(7), (c)(6)(i), (e), and (f) and 9–229(c)(2) and (g) 12
212		-	Annotated Code of Maryland 13
213		-	(2019 Replacement Volume and 2024 Supplement) 14
214		-
215		-	BY repealing and reenacting, with amendments, 15
216		-	Chapter 430 of the Acts of the General Assembly of 2023 16
217		-	Section 3 17
218		-
219		-	BY repealing and reenacting, with amendments, 18
220		-	Chapter 431 of the Acts of the General Assembly of 2023 19
221		-	Section 3 20
222		-
223		-	BY repealing and reenacting, without amendments, 21
	210	+	Article – Tax – General 11
	211	+	Section 10–702(a)(4)(ii), 10–721, 10–725(d), 10–730(f), 10–733(b)(4) and (d), and 12
	212	+	10–733.1 13
	213	+	Annotated Code of Maryland 14
	214	+	(2022 Replacement Volume and 2024 Supplement) 15
	215	+
	216	+	BY adding to 16
	217	+	Article – Tax – General 17
	218	+	Section 10–725(b)(5) and 10–733(b)(5) and (j) 18
	219	+	Annotated Code of Maryland 19
	220	+	(2022 Replacement Volume and 2024 Supplement) 20
	221	+
	222	+	BY repealing 21
224	223		Article – Tax – General 22
225		-	Section 10–~~702(a)(1), 10–725(a) and (b)(2), 10–730(a)(1), (4), and (7) and (b), and~~ 23
226		-	~~10–733(a) and (b)(2) and (3)(ii)2.J.~~ 24
227		-	~~Annotated Code of Maryland~~ 25
228		-	~~(2022 Replacement Volume and 2024 Supplement) 26~~
229		-
230		-	BY ~~repealing and reenacting, with amendments,~~ 27
231		-	~~Article – Tax –~~ General 28
232		-	~~Section 10–702(a)(4)(ii)~~, ~~10–721, 10–725(d), 10–730(b), (c), and (i), 10–730(f),~~ 29
233		-	~~10–733(b)(4) and (d)~~, and ~~10–733.1~~ 30
234		-	~~Annotated Code of Maryland~~ 31
235		-	~~(2022 Replacement Volume and 2024 Supplement) 32~~
236		-
237		-	BY ~~adding to~~ 33
238		-	~~Article – Tax –~~ General 34
239		-	~~Section 10–725(b)(5) and (k) and 10–733(b)(5) and~~, ~~(j), and (k)~~ 35
240		-	~~Annotated Code~~ of ~~Maryland~~ 36
241		-	~~(2022 Replacement Volume~~ and ~~2024 Supplement)~~ 37
242		-
243		-	BY repealing and reenacting, ~~without~~ amendments, 38
244		-	~~Article – Tax – Property~~ 39 6 SENATE BILL 427
245		-
246		-
247		-	~~Section 9–103(a)(1)~~ and ~~(6) and (b)(1) and 9–103.1(a)(1) and (6), (b), (c)(5), (e), and (f)~~ 1
248		-	~~Annotated Code~~ of ~~Maryland~~ 2
249		-	~~(2019 Replacement Volume and 2024 Supplement)~~ 3
250		-
251		-	BY ~~repealing and reenacting,~~ ~~with amendments~~, 4
252		-	~~Article~~ – ~~Tax~~ – ~~Property~~ 5
253		-	~~Section 9–103(d)(2)~~ and (5) and ~~(e)(1), 9–103.1(a)(7), (c)(3), (4), and (6), (d), (e), and~~ 6
254		-	~~(f), and 9~~–~~229(c)(2) and (g)~~ 7
255		-	Annotated Code of Maryland 8
256		-	~~(2019~~ ~~Replacement Volume~~ and ~~2024 Supplement)~~ 9
257		-
258		-	~~BY repealing 10~~
259		-	~~Article – Tax – General 11~~
260		-	Section ~~10–732~~ 12
261		-	~~Annotated Code of Maryland~~ 13
262		-	~~(2022 Replacement Volume and 2024 Supplement) 14~~
263		-
264		-	~~BY repealing and reenacting, with amendments, 15~~
265		-	~~Chapter 515 of the Acts of the General Assembly of 2000, as amended by Chapter 98 16~~
266		-	~~of the Acts of the General Assembly of 2005, Chapter 20 of the Acts of the 17~~
267		-	~~General Assembly of 2010~~, ~~Chapter 85 of the Acts of the General Assembly of 18~~
268		-	~~2019, and Chapter 114~~ of ~~the Acts of the General Assembly of 2021 19~~
269		-	~~Section 2 and 4 20~~
270		-
271		-	~~BY repealing and reenacting,~~ ~~with amendments,~~ 21
272		-	~~Chapter 516 of the Acts of the General Assembly of 2000, as amended by Chapter 98 22~~
273		-	~~of the Acts of the General Assembly of 2005, Chapter~~ 20 ~~of the Acts of the 23~~
274		-	~~General Assembly of 2010, Chapter 85 of the Acts of the General Assembly of 24~~
275		-	~~2019, and Chapter 114~~ of the ~~Acts of the General Assembly of 2021 25~~
276		-	~~Section 2 and 4 26~~
277		-
278		-	~~BY repealing and reenacting,~~ ~~with amendments,~~ 27
279		-	~~Chapter 390 of the Acts of the General Assembly of 2013, as amended by Chapter 28~~
280		-	~~578~~ of ~~the Acts of the General Assembly of 2018 and Chapter 113 of the Acts 29~~
281		-	of the ~~General Assembly of 2021 30~~
282		-	~~Section 2 31~~
283		-
284		-	~~SECTION 1. BE IT ENACTED BY~~ THE ~~GENERAL ASSEMBLY OF MARYLAND,~~ 32
285		-	That ~~Section(s) 5–1401 through 5–1410 and~~ the ~~subtitle “Subtitle 14~~. ~~Regional Institution 33~~
286		-	~~Strategic Enterprise Zone Program”; and 5–2301 through 5–2307 and the subtitle “Subtitle 34~~
287		-	~~23. Build Our Future Grant Pilot Program” of Article – Economic Development of~~ the 35
288		-	~~Annotated Code of Maryland be renumbered to be Section(s) 10–137 through 10–146 and 36~~
289		-	the ~~part “Part~~ ~~II. Regional Institution Strategic Enterprise Zone Program”; and 10–149 37~~
290		-	~~through 10–155~~ and the ~~part “Part~~ ~~III. Build Our Future Grant Pilot Program”, 38~~
291		-	~~respectively. 39~~
292		-	~~SENATE BILL 427~~ 7
293		-
294		-
295		-	~~SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1~~
296		-	~~as follows: 2~~
297		-
298		-	~~Article – Economic Development 3~~
299		-
300		-	~~2–113. 4~~
301		-
302		-	~~[(a) This section does not apply to a power, duty, responsibility, or function that is 5~~
303		-	~~granted to the Maryland Economic Development Commission under Subtitle~~ 2 ~~of this title~~. 6
304		-
305		-	~~(b)]~~ The ~~Secretary may exercise any power, duty, responsibility, or function of any 7~~
306		-	~~unit under the jurisdiction of the Department. 8~~
307		-
308		-	~~2–116. 9~~
309		-
310		-	~~(a) This section does not apply to a unit under the jurisdiction~~ of ~~the Department~~ 10
311		-	~~to the extent that the unit is authorized by law to employ its own legal counsel. 11~~
312		-
313		-	~~(b)~~ The ~~Attorney General is the legal adviser to the Department.~~ 12
314		-
315		-	~~(c) The Attorney General shall assign to the Department the number of assistant 13~~
316		-	~~Attorneys General that are authorized by law for the Department~~ and ~~its units.~~ 14
317		-
318		-	~~(d) (1) The Attorney General shall designate one of the assistant Attorneys 15~~
319		-	~~General assigned to~~ the ~~Department as counsel to~~ the ~~Department and may not reassign~~ 16
320		-	~~that individual without consulting with the Secretary.~~ 17
321		-
322		-	(2) The ~~counsel may only:~~ 18
323		-
324		-	~~(i) advise the Secretary[~~, ~~the Maryland Economic Development 19~~
325		-	~~Commission,] and any other official of the Department as they require; 20~~
326		-
327		-	~~(ii) supervise the other assistant Attorneys General assigned to the 21~~
328		-	~~Department; and 22~~
329		-
330		-	~~(iii) perform for the Department the other duties that the Attorney 23~~
331		-	~~General assigns.~~ 24
332		-
333		-	~~(3) The other assistant Attorneys General shall perform for the 25~~
334		-	~~Department the other duties~~ that ~~the Attorney General assigns.~~ 26
335		-
336		-	~~2.5–106. 27~~
337		-
338		-	~~The Department shall: 28~~
339		-
340		-	~~(1) investigate and assemble information about the~~ economic development~~, 29~~
341		-	~~industrial opportunities, and economic resources of the State, including raw materials, 30 8 SENATE BILL 427~~
342		-
343		-
344		-	~~power and water resources, transportation facilities, markets, labor, banking and financing 1~~
345		-	~~facilities, industrial sites, and other fields of research~~; 2
346		-
347		-	(2) ~~encourage location~~ and ~~development of new businesses in the State and 3~~
348		-	~~the retention~~ and ~~expansion of present enterprises in coordination with~~ local ~~governments 4~~
349		-	~~and local economic development units; 5~~
350		-
351		-	~~(3) encourage formation of local and sectional development committees and 6~~
352		-	~~cooperate with local civic groups and other local,~~ ~~State, and federal development units~~; 7
353		-
354		-	(4) ~~disseminate information in~~ the ~~interest of industrial development in the 8~~
355		-	~~State, by publication, advertising,~~ and ~~other means;~~ 9
356		-
357		-	~~(5) assist businesses in the areas of technology development and 10~~
358		-	~~commercialization, small business development, workforce development~~ and ~~productivity, 11~~
359		-	~~manufacturing modernization,~~ ~~and defense conversion~~; 12
360		-
361		-	(6) ~~serve as an ombudsman for businesses affected by State policies and 13~~
362		-	~~programs; 14~~
363		-
364		-	~~(7) coordinate business assistance service delivery to individual companies~~; 15
365		-
366		-	(8) ~~link groups~~ of ~~businesses to address regional and industry specific 16~~
367		-	~~needs; 17~~
368		-
369		-	~~(9) broker information exchange and entrepreneurial services that 18~~
370		-	~~enhance economic development through partnerships with businesses~~, ~~nonprofit 19~~
371		-	~~organizations, professional groups, local economic development entities,~~ and ~~local 20~~
372		-	~~governments; 21~~
373		-
374		-	~~(10) assist in developing~~ and ~~conducting regional strategic planning and 22~~
375		-	~~coordinating State investments with regional economic development entities;~~ 23
376		-
377		-	~~(11) collect and assemble information and data available from other State 24~~
378		-	~~units or instrumentalities;~~ 25
379		-
380		-	~~(12) monitor economic conditions, release reports, and maintain 26~~
381		-	~~interindustry models~~ of ~~State regulations~~ and ~~local economies;~~ 27
382		-
383		-	~~[(13) use community colleges in the State to help deliver services~~;] 28
384		-
385		-	~~[(14)]~~ (13) ~~administer the programs in the Department;~~ 29
386		-
387		-	~~[(15)] (14) coordinate its efforts~~ and ~~activities with the Apprenticeship~~ and 30
388		-	~~Training Council and Apprenticeship and Training Program in the Maryland Department 31~~
389		-	of ~~Labor;~~ 32
390		-	~~SENATE BILL 427 9~~
391		-
392		-
393		-	~~[(16)] (15) establish and monitor performance measures to determine the 1~~
394		-	~~success of outreach efforts to businesses;~~ 2
395		-
396		-	~~[(17)] (16) facilitate regular meetings among its regional experts, financial~~ 3
397		-	~~incentive team, and tourism development team to determine the success in meeting overall 4~~
398		-	~~economic development strategic goals and~~ in ~~addressing~~ the economic development ~~needs 5~~
399		-	~~of each region;~~ 6
400		-
401		-	~~[(18)] (17) work with community colleges to enhance the role of community 7~~
402		-	~~colleges in providing workforce training services, including industry–specific education and 8~~
403		-	~~training in response to~~ the ~~needs of the State; [and] 9~~
404		-
405		-	~~[(19)] (18) (i) define, identify, and compile data on State and regional 10~~
406		-	~~workforce needs;~~ ~~and 11~~
407		-
408		-	(ii) ~~work collaboratively with~~ the ~~Maryland Department of Labor 12~~
409		-	~~and the Maryland Higher Education Commission to produce uniform and consistent 13~~
410		-	~~baseline data,~~ ~~including common sources and measurements,~~ ~~about workforce needs to 14~~
411		-	~~inform State policies relating to postsecondary education; AND 15~~
412		-
413		-	~~(19) EVALUATE~~ THE ~~POTENTI AL EMPLOYMENT~~ AND ~~EC ONOMIC 16~~
414		-	~~GROWTH OF MARYLAND’S INDUSTRY SECTORS A ND, FROM THIS EVALUATION : 17~~
415		-
416		-	~~(I) ESTABLISH A LIST OF INDUSTRY SECTORS~~ AND ~~ACTIV ITIES 18~~
417		-	~~TO BE CONSIDERED FOR ADDITIONAL INVESTMEN T AND SUPPORT FROM T HE 19~~
418		-	~~DEPARTMENT ; 20~~
419		-
420		-	~~(II) RECOMMEND OTHER AGEN CIES CONSIDER PRIORI TIZING 21~~
421		-	~~THE SECTORS AND ACTI VITIES ON THE LIST D ESCRIBED UNDER ITEM (I) OF THIS 22~~
422		-	~~ITEM THROUGH THOSE A GENCIES’~~ ~~POLICIES AND PROGRAM S;~~ ~~AND 23~~
423		-
424		-	~~(III) PUBLISH~~ THE ~~LIST DES CRIBED UNDER ITEM (I) OF THIS 24~~
425		-	~~ITEM ON~~ THE ~~DEPARTMENT ’S~~ ~~WEBSITE. 25~~
426		-
427		-	~~[Subtitle~~ 2. ~~Maryland Economic Development Commission.] 26~~
428		-
429		-	~~[2.5–201. 27~~
430		-
431		-	~~In this subtitle,~~ ~~“Commission” means the Maryland Economic Development 28~~
432		-	~~Commission.] 29~~
433		-
434		-	~~[2.5–202. 30~~
435		-
436		-	~~(a) There is a Maryland Economic Development Commission staffed~~ by the 31
437		-	~~Department. 32~~ 10 SENATE BILL 427
438		-
439		-
440		-
441		-	~~(b)~~ The ~~purpose~~ of ~~the Commission is to:~~ 1
442		-
443		-	~~(1) establish economic development policy in the State; 2~~
444		-
445		-	~~(2) advise~~ the ~~Secretary on economic development policy in the State~~; 3
446		-
447		-	~~(3) oversee~~ the ~~operations~~ of the ~~Department and its units, including the 4~~
448		-	~~Department~~’s ~~efforts to support the creation of, attract, and retain businesses and jobs~~; ~~and 5~~
449		-
450		-	~~(4) monitor~~ the ~~operations of~~ the ~~Maryland Technology Development 6~~
451		-	~~Corporation, the Maryland Economic Development Corporation, and the Maryland 7~~
452		-	~~Public–Private Partnership Marketing Corporation, including~~ the ~~efforts~~ of ~~those entities~~ 8
453		-	~~to support the creation, attraction, and retention of businesses and jobs.] 9~~
454		-
455		-	~~[2.5–203.~~ 10
456		-
457		-	~~(a) (1) (i) The Commission consists of: 11~~
458		-
459		-	1. ~~not more than 21 voting members appointed by~~ the 12
460		-	~~Governor with the advice and consent of the Senate; 13~~
461		-
462		-	2. ~~two voting members appointed by the President of the 14~~
463		-	~~Senate of Maryland; 15~~
464		-
465		-	~~3. two voting members appointed by the Speaker of the 16~~
466		-	~~House of Delegates~~; 17
467		-
468		-	4. ~~A. one member of the Senate of Maryland, designated~~ 18
469		-	~~by the President of the Senate; and 19~~
470		-
471		-	~~B. one member of the House of Delegates, designated by the 20~~
472		-	~~Speaker of the House;~~ ~~and 21~~
473		-
474		-	5. the ~~following representatives~~ of ~~State units and 22~~
475		-	~~instrumentalities of the State: 23~~
476		-
477		-	~~A. the Executive Director of the Maryland Economic 24~~
478		-	~~Development Corporation,~~ ~~or the Executive Director’s designee;~~ 25
479		-
480		-	B. the ~~Chief Executive Officer of the Maryland Technology 26~~
481		-	~~Development Corporation, or the Chief Executive Officer’s designee; 27~~
482		-
483		-	~~C. the Secretary or the Secretary’s designee; and 28~~
484		-
485		-	D. the ~~Secretary of Labor, or the Secretary’s designee~~. 29
	224	+	Section 10–732 23
	225	+	Annotated Code of Maryland 24
	226	+	(2022 Replacement Volume and 2024 Supplement) 25
	227	+
	228	+	BY repealing and reenacting, with amendments, 26
	229	+	Chapter 515 of the Acts of the General Assembly of 2000, as amended by Chapter 98 27
	230	+	of the Acts of the General Assembly of 2005, Chapter 20 of the Acts of the 28
	231	+	General Assembly of 2010, Chapter 85 of the Acts of the General Assembly of 29
	232	+	2019, and Chapter 114 of the Acts of the General Assembly of 2021 30
	233	+	Section 2 and 4 31
	234	+
	235	+	BY repealing and reenacting, with amendments, 32
	236	+	Chapter 516 of the Acts of the General Assembly of 2000, as amended by Chapter 98 33
	237	+	of the Acts of the General Assembly of 2005, Chapter 20 of the Acts of the 34
	238	+	General Assembly of 2010, Chapter 85 of the Acts of the General Assembly of 35
	239	+	2019, and Chapter 114 of the Acts of the General Assembly of 2021 36
	240	+	Section 2 and 4 37
	241	+
	242	+	BY repealing and reenacting, with amendments, 38
	243	+	Chapter 390 of the Acts of the General Assembly of 2013, as amended by Chapter 39 6 SENATE BILL 427
	244	+
	245	+
	246	+	578 of the Acts of the General Assembly of 2018 and Chapter 113 of the Acts 1
	247	+	of the General Assembly of 2021 2
	248	+	Section 2 3
	249	+
	250	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBL Y OF MARYLAND, 4
	251	+	That Section(s) 5–1401 through 5–1410 and the subtitle “Subtitle 14. Regional Institution 5
	252	+	Strategic Enterprise Zone Program”; and 5–2301 through 5–2307 and the subtitle “Subtitle 6
	253	+	23. Build Our Future Grant Pilot Program” of Article – Economic Development of the 7
	254	+	Annotated Code of Maryland be renumbered to be Section(s) 10–137 through 10–146 and 8
	255	+	the part “Part II. Regional Institution Strategic Enterprise Zone Program”; and 10–149 9
	256	+	through 10–155 and the part “Part III. Build Our Future Grant Pi lot Program”, 10
	257	+	respectively. 11
	258	+
	259	+	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 12
	260	+	as follows: 13
	261	+
	262	+	Article – Economic Development 14
	263	+
	264	+	2–113. 15
	265	+
	266	+	[(a) This section does not apply to a power, duty, responsibility, or function that is 16
	267	+	granted to the Maryland Economic Development Commission under Subtitle 2 of this title. 17
	268	+
	269	+	(b)] The Secretary may exercise any power, duty, responsibility, or function of any 18
	270	+	unit under the jurisdiction of the Department. 19
	271	+
	272	+	2–116. 20
	273	+
	274	+	(a) This section does not apply to a unit under the jurisdiction of the Department 21
	275	+	to the extent that the unit is authorized by law to employ its own legal counsel. 22
	276	+
	277	+	(b) The Attorney General is the legal adviser to the Department. 23
	278	+
	279	+	(c) The Attorney General shall assign to the Department the number of assistant 24
	280	+	Attorneys General that are authorized by law for the Department and its units. 25
	281	+
	282	+	(d) (1) The Attorney General shall designate one of the assistant Attorneys 26
	283	+	General assigned to the Department as counsel to the Department and may not reassign 27
	284	+	that individual without consulting with the Secretary. 28
	285	+
	286	+	(2) The counsel may only: 29
	287	+
	288	+	(i) advise the Secretary[, the Maryland Economic Development 30
	289	+	Commission,] and any other official of the Department as they require; 31
	290	+
	291	+	(ii) supervise the other assistant Attorneys General assigned to the 32
	292	+	Department; and 33 SENATE BILL 427 7
	293	+
	294	+
	295	+
	296	+	(iii) perform for the Department the other duties that the Attorney 1
	297	+	General assigns. 2
	298	+
	299	+	(3) The other assistant Attorneys General shall perform for the 3
	300	+	Department the other duties that the Attorney General assigns. 4
	301	+
	302	+	2.5–106. 5
	303	+
	304	+	The Department shall: 6
	305	+
	306	+	(1) investigate and assemble information about the economic development, 7
	307	+	industrial opportunities, and economic resources of the State, including raw materials, 8
	308	+	power and water resources, transportation facilities, markets, labor, banking and financing 9
	309	+	facilities, industrial sites, and other fields of research; 10
	310	+
	311	+	(2) encourage location and development of new businesses in the State and 11
	312	+	the retention and expansion of present enterprises in coordination with local governments 12
	313	+	and local economic development units; 13
	314	+
	315	+	(3) encourage formation of local and sectional development committees and 14
	316	+	cooperate with local civic groups and other local, State, and federal development units; 15
	317	+
	318	+	(4) disseminate information in the interest of industrial development in the 16
	319	+	State, by publication, advertising, and other means; 17
	320	+
	321	+	(5) assist businesses in the areas of technology development and 18
	322	+	commercialization, small business development, workforce development and productivity, 19
	323	+	manufacturing modernization, and defense conversion; 20
	324	+
	325	+	(6) serve as an ombudsman for businesses affected by State policies and 21
	326	+	programs; 22
	327	+
	328	+	(7) coordinate business assistance service delivery to individual companies; 23
	329	+
	330	+	(8) link groups of businesses to address regional and industry specific 24
	331	+	needs; 25
	332	+
	333	+	(9) broker information exchange and entrepreneurial services that 26
	334	+	enhance economic development through partnerships with businesses, nonprofit 27
	335	+	organizations, professional groups, local economic development entities, and local 28
	336	+	governments; 29
	337	+
	338	+	(10) assist in developing and conducting regional strategic planning and 30
	339	+	coordinating State investments with regional economic development entities; 31
	340	+
	341	+	(11) collect and assemble information and data available from other State 32 8 SENATE BILL 427
	342	+
	343	+
	344	+	units or instrumentalities; 1
	345	+
	346	+	(12) monitor economic conditions, release reports, and maintain 2
	347	+	interindustry models of State regulations and local economies; 3
	348	+
	349	+	[(13) use community colleges in the State to help deliver services;] 4
	350	+
	351	+	[(14)] (13) administer the programs in the Department; 5
	352	+
	353	+	[(15)] (14) coordinate its efforts and activities with the Apprenticeship and 6
	354	+	Training Council and Apprenticeship and Training Program in the Maryland Department 7
	355	+	of Labor; 8
	356	+
	357	+	[(16)] (15) establish and monitor performance measures to determine the 9
	358	+	success of outreach efforts to businesses; 10
	359	+
	360	+	[(17)] (16) facilitate regular meetings among its regional experts, financial 11
	361	+	incentive team, and tourism development team to determine the success in meeting overall 12
	362	+	economic development strategic goals and in addressing the economic development needs 13
	363	+	of each region; 14
	364	+
	365	+	[(18)] (17) work with community colleges to enhance the role of community 15
	366	+	colleges in providing workforce training services, including industry–specific education and 16
	367	+	training in response to the needs of the State; [and] 17
	368	+
	369	+	[(19)] (18) (i) define, identify, and compile data on State and regional 18
	370	+	workforce needs; and 19
	371	+
	372	+	(ii) work collaboratively with the Maryland Department of Labor 20
	373	+	and the Maryland Higher Education Commission to produce uniform and consistent 21
	374	+	baseline data, including common sources and measurements, about workforce needs to 22
	375	+	inform State policies relating to postsecondary education; AND 23
	376	+
	377	+	(19) EVALUATE THE POTENTI AL EMPLOYMENT AND EC ONOMIC 24
	378	+	GROWTH OF MARYLAND’S INDUSTRY SECTORS A ND, FROM THIS EVALUATION : 25
	379	+
	380	+	(I) ESTABLISH A LIST OF INDUSTRY SECTORS AND ACTIVITIES 26
	381	+	TO BE CONSIDERED F OR ADDITIONAL INVEST MENT AND SUPPORT FRO M THE 27
	382	+	DEPARTMENT ; 28
	383	+
	384	+	(II) RECOMMEND OTHER AGEN CIES CONSIDER PRIORI TIZING 29
	385	+	THE SECTORS AND ACTI VITIES ON THE LIST D ESCRIBED UNDER ITEM (I) OF THIS 30
	386	+	ITEM THROUGH THOSE A GENCIES’ POLICIES AND PROGRAM S; AND 31
	387	+
	388	+	(III) PUBLISH THE LIST DESCRIB ED UNDER ITEM (I) OF THIS 32 SENATE BILL 427 9
	389	+
	390	+
	391	+	ITEM ON THE DEPARTMENT ’S WEBSITE. 1
	392	+
	393	+	[Subtitle 2. Maryland Economic Development Commission.] 2
	394	+
	395	+	[2.5–201. 3
	396	+
	397	+	In this subtitle, “Commission” means the Maryland Economic Development 4
	398	+	Commission.] 5
	399	+
	400	+	[2.5–202. 6
	401	+
	402	+	(a) There is a Maryland Economic Development Commission staffed by the 7
	403	+	Department. 8
	404	+
	405	+	(b) The purpose of the Commission is to: 9
	406	+
	407	+	(1) establish economic development policy in the State; 10
	408	+
	409	+	(2) advise the Secretary on economic development policy in the State; 11
	410	+
	411	+	(3) oversee the operations of the Department and its units, including the 12
	412	+	Department’s efforts to support the creation of, attract, and retain businesses and jobs; and 13
	413	+
	414	+	(4) monitor the operations of the Maryland Technology Development 14
	415	+	Corporation, the Maryland Economic Development Corporation, and the Maryland 15
	416	+	Public–Private Partnership Marketing Corporation, including the efforts of those entities 16
	417	+	to support the creation, attraction, and retention of businesses and jobs.] 17
	418	+
	419	+	[2.5–203. 18
	420	+
	421	+	(a) (1) (i) The Commission consists of: 19
	422	+
	423	+	1. not more than 21 voting members appointed by the 20
	424	+	Governor with the advice and consent of the Senate; 21
	425	+
	426	+	2. two voting members appointed by the President of the 22
	427	+	Senate of Maryland; 23
	428	+
	429	+	3. two voting members appointed by the Speaker of the 24
	430	+	House of Delegates; 25
	431	+
	432	+	4. A. one member of the Senate of Maryland, designated 26
	433	+	by the President of the Senate; and 27
	434	+
	435	+	B. one member of the House of Delegates, designated by the 28
	436	+	Speaker of the House; and 29 10 SENATE BILL 427
	437	+
	438	+
	439	+
	440	+	5. the following representatives of State units and 1
	441	+	instrumentalities of the State: 2
	442	+
	443	+	A. the Executive Director of the Maryland Economic 3
	444	+	Development Corporation, or the Executive Director’s designee; 4
	445	+
	446	+	B. the Chief Executive Officer of the Maryland Technology 5
	447	+	Development Corporation, or the Chief Executive Officer’s designee; 6
	448	+
	449	+	C. the Secretary or the Secretary’s designee; and 7
	450	+
	451	+	D. the Secretary of Labor, or the Secretary’s designee. 8
	452	+
	453	+	(ii) The Secretary and the Secretary of Labor or their designees, 9
	454	+	State unit or instrumentality representatives, and members of the General Assembly are 10
	455	+	nonvoting ex officio members of the Commission. 11
	456	+
	457	+	(iii) A designee under subparagraph (i)5 of this paragraph may be an 12
	458	+	administrator or a senior official of the unit or instrumentality. 13
	459	+
	460	+	(2) The geographic representation of the Commission shall cover the entire 14
	461	+	State and shall include at least one representative from: 15
	462	+
	463	+	(i) the upper Eastern Shore; 16
	464	+
	465	+	(ii) the lower Eastern Shore; 17
	466	+
	467	+	(iii) Calvert County, Charles County, or St. Mary’s County; 18
	468	+
	469	+	(iv) Allegany County or Garrett County; and 19
	470	+
	471	+	(v) Carroll County, Frederick County, or Washington County. 20
	472	+
	473	+	(3) The industries represented by the members of the Commission shall: 21
	474	+
	475	+	(i) be diverse; and 22
	476	+
	477	+	(ii) include at least one representative from: 23
	478	+
	479	+	1. the life sciences industry; and 24
	480	+
	481	+	2. the manufacturing industry. 25
	482	+
	483	+	(4) The members appointed shall reflect the racial and gender diversity of 26
	484	+	the population of the State. 27
486	485		SENATE BILL 427 11
487	486
488	487
489		-	(ii) The Secretary and the Secretary of Labor or their designees, 1
490		-	State unit or instrumentality representatives, and members of the General Assembly are 2
491		-	nonvoting ex officio members of the Commission. 3
492		-
493		-	(iii) A designee under subparagraph (i)5 of this paragraph may be an 4
494		-	administrator or a senior official of the unit or instrumentality. 5
495		-
496		-	(2) The geographic representation of the Commission shall cover the entire 6
497		-	State and shall include at least one representative from: 7
498		-
499		-	(i) the upper Eastern Shore; 8
500		-
501		-	(ii) the lower Eastern Shore; 9
502		-
503		-	(iii) Calvert County, Charles County, or St. Mary’s County; 10
504		-
505		-	(iv) Allegany County or Garrett County; and 11
506		-
507		-	(v) Carroll County, Frederick County, or Washington County. 12
508		-
509		-	(3) The industries represented by the members of the Commission shall: 13
510		-
511		-	(i) be diverse; and 14
512		-
513		-	(ii) include at least one representative from: 15
514		-
515		-	1. the life sciences industry; and 16
516		-
517		-	2. the manufacturing industry. 17
518		-
519		-	(4) The members appointed shall reflect the racial and gender diversity of 18
520		-	the population of the State. 19
521		-
522		-	(b) The appointed members of the Commission shall have substantial interest or 20
523		-	experience in business or knowledge of business and economic development. 21
524		-
525		-	(c) The Commission and its members are subject to the Maryland Public Ethics 22
526		-	Law. 23
527		-
528		-	(d) (1) The term of an appointed member is 3 years. 24
529		-
530		-	(2) At the end of a term, an appointed member continues to serve until a 25
531		-	successor is appointed and qualifies. 26
532		-
533		-	(3) A member appointed after a term has begun serves only for the 27
534		-	remainder of the term and until a successor is appointed and qualifies. 28
535		-	12 SENATE BILL 427
536		-
537		-
538		-	(4) The terms of the appointed members are staggered as required by the 1
539		-	terms provided for members of the Commission on October 1, 2008. 2
540		-
541		-	(5) A member may be removed by the Governor with or without cause.] 3
542		-
543		-	[2.5–204. 4
544		-
545		-	(a) The Governor shall designate a chair or cochairs from the voting members of 5
546		-	the Commission. 6
547		-
548		-	(b) The Commission may elect an executive committee or f orm special 7
549		-	subcommittees from its members to exercise the powers and functions of the Commission 8
550		-	between meetings of the Commission.] 9
551		-
552		-	[2.5–205. 10
553		-
554		-	(a) (1) The Commission shall meet as often as its duties require, but not less 11
555		-	than quarterly. 12
556		-
557		-	(2) The chair or cochairs shall designate a time and place for meetings of 13
558		-	the Commission. 14
559		-
560		-	(b) A majority of the voting members of the Commission is a quorum. 15
561		-
562		-	(c) A voting member of the Commission: 16
563		-
564		-	(1) may not receive compensation as a member of the Commission; but 17
565		-
566		-	(2) is entitled to reimbursement in accordance with the Standard State 18
567		-	Travel Regulations as provided in the State budget. 19
568		-
569		-	(d) The Department shall provide staff support to the Commission.] 20
570		-
571		-	[2.5–206. 21
572		-
573		-	(a) The Commission may: 22
574		-
575		-	(1) adopt bylaws for the conduct of its business; 23
576		-
577		-	(2) hire consultants; and 24
578		-
579		-	(3) do anything necessary or convenient to carry out its powers and the 25
580		-	purposes of this subtitle. 26
581		-
582		-	(b) The Commission shall: 27
583		-	SENATE BILL 427 13
584		-
585		-
586		-	(1) develop and update an economic development strategic plan for the 1
587		-	State; 2
588		-
589		-	(2) seek ideas and advice from each region of the State to develop the 3
590		-	economic development strategic plan; 4
591		-
592		-	(3) recommend to the Governor and the Secretary the program and 5
593		-	spending priorities needed to implement the economic development strategic plan; 6
594		-
595		-	(4) review the allocation of financing incentives; 7
596		-
597		-	(5) participate in encouraging new businesses to locate in the State; 8
598		-
599		-	(6) conduct periodic reviews of the economic development activities of the 9
600		-	Department, the Maryland Economic Development Corporation, the Maryland Technology 10
601		-	Development Corporation, and the Maryland Public–Private Partnership Marketing 11
602		-	Corporation for compliance with the economic development strategic plan; 12
603		-
604		-	(7) make recommendations to the Governor and the Secretary to improve 13
605		-	economic development activities that fail to achieve economic development strategic goals 14
606		-	or are inconsistent with priorities under the economic development strategic plan; and 15
607		-
608		-	(8) carry out other economic development activities that the Governor or 16
609		-	the Secretary requests.] 17
610		-
611		-	[2.5–207. 18
612		-
613		-	(a) On or before January 15 of each year, the Commission shall report to the 19
614		-	General Assembly, in accordance with § 2–1257 of the State Government Article, on its 20
615		-	activities during the previous year. 21
616		-
617		-	(b) The report shall include a review of initiatives taken by the Commission and 22
618		-	the Department to implement the economic development strategic plan.] 23
619		-
620		-	3–201. 24
621		-
622		-	(a) In this subtitle the following words have the meanings indicated. 25
623		-
624		-	(b) “Advisory Board” means the Maryland Life Sciences Advisory Board. 26
625		-
626		-	(c) “Corporation” means the Maryland Technology Development Corporation. 27
627		-
628		-	(d) “Life sciences” includes the fields of biotechnology, pharmaceuticals, 28
629		-	biomedical technologies, life systems technologies, food sciences, environmental sciences, 29
630		-	and biomedical devices. 30
631		-
632		-	3–202. 31 14 SENATE BILL 427
633		-
634		-
635		-
636		-	(a) There is a Maryland Life Sciences Advisory Board in the Department. 1
637		-
638		-	(b) The purpose of the Advisory Board is to recommend State and federal policies, 2
639		-	priorities, practices, and legislation to expedite the creation of private sector jobs through 3
640		-	the commercialization of life sciences research. 4
641		-
642		-	3–203. 5
643		-
644		-	(a) The Advisory Board consists of the following 18 members: 6
645		-
646		-	(1) the Secretary or the Secretary’s designee; 7
647		-
648		-	(2) the Executive Director of the Corporation, or the Executive Director’s 8
649		-	designee; and 9
650		-
651		-	(3) the following members appointed by the Governor: 10
652		-
653		-	(i) three representing federal agencies located in the State with life 11
654		-	sciences missions; 12
655		-
656		-	(ii) seven with executive experience in life sciences businesses 13
657		-	located in the State, at least four of whom represent small businesses; 14
658		-
659		-	(iii) four representing institutions of higher education located in the 15
660		-	State, one of whom shall represent a community college; 16
661		-
662		-	(iv) one with general business marketing experience in a life sciences 17
663		-	business located in the State; and 18
664		-
665		-	(v) one member of the general public. 19
666		-
667		-	(b) The composition of the Advisory Board shall reflect the racial and gender 20
668		-	diversity of the population of the State. 21
669		-
670		-	(c) (1) Except for the Secretary or the Secretary’s designee and the Executive 22
671		-	Director of the Corporation or the Executive Director’s designee, the term of an Advisory 23
672		-	Board member is [2] 3 years. 24
673		-
674		-	(2) At the end of a term, a member continues to serve until a successor is 25
675		-	appointed and qualifies. 26
676		-
677		-	(3) A member who is appointed after a term has begun serves only for the 27
678		-	rest of the term and until a successor is appointed and qualifies. 28
679		-	SENATE BILL 427 15
680		-
681		-
682		-	(4) THE TERMS OF THE APPO INTED MEMBERS ARE STAGGERED AS 1
683		-	REQUIRED BY THE TERM S PROVIDED FOR MEMBE RS OF THE ADVISORY BOARD ON 2
684		-	JULY 1, 2025. 3
685		-
686		-	(d) The Governor may remove a member of the Advisory Board for incompetence, 4
687		-	misconduct, or failure to perform the duties of the position. 5
688		-
689		-	(e) The Governor shall select a chair from among the members of the Advisory 6
690		-	Board. 7
691		-
692		-	(f) The Advisory Board may act with an affirmative vote of eight members. 8
693		-
694		-	(g) A member of the Advisory Board: 9
695		-
696		-	(1) may not receive compensation as a member of the Advisory Board; but 10
697		-
698		-	(2) is entitled to reimbursement for expenses under the Standard State 11
699		-	Travel Regulations, as provided in the State budget. 12
700		-
701		-	3–401. 13
702		-
703		-	(a) In this subtitle the following words have the meanings indicated. 14
704		-
705		-	[(b) “Board” means the Partnership for Workforce Quality Advisory Board.] 15
706		-
707		-	[(c)] (B) “Fund” means the [Partnership for Workforce Quality] TALENT 16
708		-	ACCELERATOR GRANT Fund. 17
709		-
710		-	[(d)] (C) “Program” means the [Partnership for Workforce Quality] TALENT 18
711		-	ACCELERATOR GRANT Program. 19
712		-
713		-	3–402. 20
714		-
715		-	There is a [Partnership for Workforce Quality] TALENT ACCELERATOR GRANT 21
716		-	Program in the Department. 22
717		-
718		-	3–403. 23
719		-
720		-	The purpose of the Program is to provide training services to: 24
721		-
722		-	(1) improve the competitiveness and productivity of the State’s workforce 25
723		-	and business community; 26
724		-
725		-	(2) upgrade employee skills, or train new employees, for new technologies 27
726		-	or production processes; and 28
727		-	16 SENATE BILL 427
728		-
729		-
730		-	(3) assist employers located in the State in promoting employment 1
731		-	stability. 2
732		-
733		-	[3–408. 3
734		-
735		-	(a) There is a Partnership for Workforce Quality Advisory Board in the 4
736		-	Department. 5
737		-
738		-	(b) The Board shall advise the Secretary.] 6
739		-
740		-	[3–409. 7
741		-
742		-	(a) The Board consists of the following 15 members: 8
743		-
744		-	(1) one member of the Senate of Maryland appointed by the President of 9
745		-	the Senate; 10
746		-
747		-	(2) one member of the House of Delegates appointed by the Speaker of the 11
748		-	House; and 12
749		-
750		-	(3) the following members appointed by the Governor with the advice of 13
751		-	the Secretary and the chair of the Governor’s Workforce Development Board: 14
752		-
753		-	(i) five representatives of business, of which three shall represent 15
754		-	employers with fewer than 100 employees; 16
755		-
756		-	(ii) three representatives of organized labor; 17
757		-
758		-	(iii) one representative from the Maryland Higher Education 18
759		-	Commission; 19
760		-
761		-	(iv) one representative from the State Department of Education; 20
762		-
763		-	(v) one representative from the Governor’s Workforce Development 21
764		-	Board; and 22
765		-
766		-	(vi) two representatives of the general public. 23
767		-
768		-	(b) (1) The term of a member appointed under subsection (a)(3) of this section 24
769		-	is 3 years. 25
770		-
771		-	(2) The terms of the members appointed under subsection (a)(3) of this 26
772		-	section are staggered as required by the terms provided for members of the Board on 27
773		-	October 1, 2008. 28
774		-
775		-	(3) At the end of a term, a member continues to serve until a successor is 29
776		-	appointed and qualifies. 30 SENATE BILL 427 17
777		-
778		-
779		-
780		-	(4) A member who is appointed after a term has begun serves only for the 1
781		-	rest of the term and until a successor is appointed and qualifies. 2
782		-
783		-	(c) A member of the Board: 3
784		-
785		-	(1) may not receive compensation as a member of the Board; but 4
786		-
787		-	(2) is entitled to reimbursement for expenses under the Standard State 5
788		-	Travel Regulations. 6
789		-
790		-	(d) The Governor shall designate the chair of the Board.] 7
791		-
792		-	[3–410. 8
793		-
794		-	(a) The Board shall: 9
795		-
796		-	(1) submit recommendations to the Secretary concerning overall policy for 10
797		-	the Program; 11
798		-
799		-	(2) recommend a system to evaluate requests for assistance under the 12
800		-	Program, including eligibility criteria and priorities for assistance; 13
801		-
802		-	(3) develop criteria to assess and evaluate Program performance and 14
803		-	advise the Secretary of the criteria; 15
804		-
805		-	(4) consult regularly with the Governor’s Workforce Development Board 16
806		-	and the Maryland Economic Development Commission concerning the activities of the 17
807		-	Program; 18
808		-
809		-	(5) submit a quarterly report on the Program to the Governor’s Workforce 19
810		-	Development Board; and 20
811		-
812		-	(6) advise the Secretary on coordination of cooperative activities at the 21
813		-	State and local level between the Department, employers, labor, and other public and 22
814		-	private entities involved with workforce quality. 23
815		-
816		-	(b) In recommending a system for evaluating requests for assistance, the Board 24
817		-	shall consider the equal distribution of assistance to all subdivisions of the State.] 25
818		-
819		-	3–411. 26
820		-
821		-	(a) There is a [Partnership for Workforce Quality] TALENT ACCELERATOR 27
822		-	GRANT Fund in the Department. 28
823		-
824		-	(b) The Secretary shall manage and supervise the Fund. 29
825		-	18 SENATE BILL 427
826		-
827		-
828		-	(c) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 1
829		-	under § 7–302 of the State Finance and Procurement Article. 2
830		-
831		-	(2) The Treasurer shall hold the Fund separately and the Comptroller shall 3
832		-	account for the Fund. 4
833		-
834		-	(d) The Fund consists of: 5
835		-
836		-	(1) money appropriated by the State to the Fund; 6
837		-
838		-	(2) money made available to the Fund through federal programs; 7
839		-
840		-	(3) private contributions to the Fund; 8
841		-
842		-	(4) an application or other fee paid to the Program in connection with 9
843		-	processing a request for financial assistance; and 10
844		-
845		-	(5) any other money made available to the Fund. 11
846		-
847		-	(e) The Department may use money in the Fund for: 12
848		-
849		-	(1) grants to defray the cost of workforce training; and 13
850		-
851		-	(2) administrative, actuarial, legal, and technical services for the Program. 14
852		-
853		-	(f) Any investment earnings shall be credited to the Fund. 15
854		-
855		-	(g) The Governor shall include in the State budget for each fiscal year an 16
856		-	appropriation of at least $1,000,000 for the [Partnership for Workforce Quality] TALENT 17
857		-	ACCELERATOR GRANT Program. 18
858		-
859		-	5–102. 19
860		-
861		-	The Department shall administer the State’s economic development and financial 20
862		-	assistance programs and funds including: 21
863		-
864		-	(1) the BRAC Revitalization and Incentive Zone Program, under Subtitle 22
865		-	13 of this title; 23
866		-
867		-	(2) [the Build Our Future Grant Pilot Program, under Subtitle 23 of this 24
868		-	title; 25
869		-
870		-	(3)] the Enterprise Fund, under Subtitle 6 of this title; 26
871		-
872		-	[(4)] (3) the Enterprise Zones Program, under Subtitle 7 of this title; 27
873		-	SENATE BILL 427 19
874		-
875		-
876		-	[(5)] (4) the Make Office Vacancies Extinct Program, under Subtitle 15 of 1
877		-	this title; 2
878		-
879		-	[(6)] (5) the Maryland Economic Adjustment Fund, under Subtitle 2 of 3
880		-	this title; 4
881		-
882		-	[(7)] (6) the Maryland Economic [Development Assistance Authority 5
883		-	and] COMPETITIVENESS Fund, under Subtitle 3 of this title; 6
884		-
885		-	[(8)] (7) the Maryland Industrial Development Financing Authority, 7
886		-	under Subtitle 4 of this title; 8
887		-
888		-	[(9)] (8) the Maryland [Small Business Development Financing 9
889		-	Authority] ECONOMIC INCLUSION FUND, under Subtitle 5 of this title; 10
890		-
891		-	[(10)] (9) the Appalachian Regional Development Program, under Title 13, 11
892		-	Subtitle 1 of this article; 12
893		-
894		-	[(11)] (10) jointly with the Department of Housing and Community 13
895		-	Development, the Community Development Block Grant for Economic Development; AND 14
896		-
897		-	[(12) the Regional Institution Strategic Enterprise Zone Program under 15
898		-	Subtitle 14 of this title; and 16
899		-
900		-	(13)] (11) any other programs or funds designated by statute, the 17
901		-	Governor, or the Secretary. 18
902		-
903		-	5–201. 19
904		-
905		-	(a) In this subtitle the following words have the meanings indicated. 20
906		-
907		-	(b) “Fund” means the Maryland Economic Adjustment Fund. 21
908		-
909		-	(c) (1) “Working capital” means money for current operations of a business. 22
910		-
911		-	(2) “Working capital” includes money for supplies, materials, labor, 23
912		-	equipment, rent, software, marketing, insurance, and fees for professional services. 24
913		-
914		-	5–203. 25
915		-
916		-	(a) There is a Maryland Economic Adjustment Fund in the Department. 26
917		-
918		-	(b) (1) The Department shall administer the Fund. 27
919		-
920		-	(2) The Secretary may: 28
921		-	20 SENATE BILL 427
922		-
923		-
924		-	(i) delegate to any unit in the Department the underwriting, closing, 1
925		-	monitoring, and workout functions for Fund loans; or 2
926		-
927		-	(ii) contract with another entity to perform these functions. 3
928		-
929		-	(c) The Maryland Economic Adjustment Fund is a special, nonlapsing revolving 4
930		-	fund that is not subject to reversion under § 7–302 of the State Finance and Procurement 5
931		-	Article. 6
932		-
933		-	(d) (1) The Fund consists of: 7
934		-
935		-	(i) federal money allocated or granted to the Fund, including 8
936		-	adjustment implementation grant money designated for the Fund under the Defense 9
937		-	Conversion and Defense Economic Adjustment Program of the Economic Development 10
938		-	Administration of the United States Department of Commerce; 11
939		-
940		-	(ii) private money donated or granted to the Fund; 12
941		-
942		-	(iii) money appropriated by the State to the Fund; 13
943		-
944		-	(iv) premiums, fees, interest payments, and principal payments on 14
945		-	loans made under this subtitle, including a loan financed by the Economic Development 15
946		-	Opportunities Program Fund under § 7–314(f) of the State Finance and Procurement 16
947		-	Article; 17
948		-
949		-	(v) proceeds from the sale, disposition, lease, or rental of collateral 18
950		-	relating to loans under this subtitle; and 19
951		-
952		-	(vi) any other money made available to the Fund. 20
953		-
954		-	(2) This subtitle does not require an appropriation to the Fund from the 21
955		-	General Fund of the State, regardless of the availability of other funding sources for the 22
956		-	Fund. 23
957		-
958		-	(e) (1) The Fund shall be used to: 24
959		-
960		-	(i) make loans to new or existing companies with 50 or fewer 25
961		-	employees; 26
962		-
963		-	(ii) make grants to local or regional governmental or nonprofit 27
964		-	economic development revolving loan funds in the State; and 28
965		-
966		-	(iii) pay all expenses and disbursements authorized by the 29
967		-	Department for administering the Fund. 30
968		-
969		-	(2) A loan to an eligible company under this subtitle may include: 31
970		-	SENATE BILL 427 21
971		-
972		-
973		-	(i) advances of loan proceeds for loans; and 1
974		-
975		-	(ii) to the extent allowed by the regulations of the federal Economic 2
976		-	Development Administration of the United States Department of Commerce, money for 3
977		-	expenses for administrative, legal, actuarial, technical, and other services. 4
978		-
979		-	(3) Subject to the restrictions of this subtitle, the Department may make a 5
980		-	loan from the Fund to an applicant only if: 6
981		-
982		-	(i) the applicant meets the qualifications under this subtitle; and 7
983		-
984		-	(ii) the applicant meets any additional requirements imposed by the 8
985		-	source of the money to be loaned. 9
986		-
987		-	(f) (1) The Treasurer shall invest the money of the Fund in the same manner 10
988		-	as other State money may be invested. 11
989		-
990		-	(2) Any investment earnings of the Fund shall be credited to the Fund. 12
991		-
992		-	(3) The Treasurer shall submit a report each year to the Department on: 13
993		-
994		-	(i) the status of the money invested under this subtitle; 14
995		-
996		-	(ii) the market value of the assets in the Fund on the date of the 15
997		-	report; and 16
998		-
999		-	(iii) the interest received from investments for the Fund during the 17
1000		-	reporting period. 18
1001		-
1002		-	5–205. 19
1003		-
1004		-	(a) An applicant for a loan under this subtitle shall submit to the Department an 20
1005		-	application on the form that the Department requires. 21
1006		-
1007		-	(b) The application shall include: 22
1008		-
1009		-	(1) a detailed strategic business plan; 23
1010		-
1011		-	(2) the amount of money required for the activities described in the 24
1012		-	strategic business plan; 25
1013		-
1014		-	(3) the money available to the applicant without financial assistance from 26
1015		-	the Department; 27
1016		-
1017		-	(4) the amount of financial assistance requested from the Department; 28
1018		-	22 SENATE BILL 427
1019		-
1020		-
1021		-	(5) information relating to the financial status of the applicant, including, 1
1022		-	if applicable: 2
1023		-
1024		-	(i) a current balance sheet; 3
1025		-
1026		-	(ii) a profit and loss statement; and 4
1027		-
1028		-	(iii) credit references; and 5
1029		-
1030		-	(6) any other relevant information that the Department requests. 6
1031		-
1032		-	(C) THE DEPARTMENT MAY NOT AP PROVE AN APPLICATION FOR FINANCIAL 7
1033		-	ASSISTANCE UNDER THI S SUBTITLE AFTER JUNE 30, 2025. 8
1034		-
1035		-	Subtitle 3. Maryland Economic [Development Assistance Authority and] 9
1036		-	COMPETITIVENESS Fund. 10
1037		-
1038		-	5–301. 11
1039		-
1040		-	(a) In this subtitle the following words have the meanings indicated. 12
1041		-
1042		-	(b) “Aquaculture project” means a project that encourages innovation, expansion, 13
1043		-	and modernization of the seafood processing industry or aquaculture industry. 14
1044		-
1045		-	(c) “Arts and entertainment district” means an area designated by the Secretary 15
1046		-	as an arts and entertainment district under Title 4, Subtitle 7 of this article. 16
1047		-
1048		-	(d) “Arts and entertainment enterprise” means a for–profit or nonprofit entity 17
1049		-	that is: 18
1050		-
1051		-	(1) located in an arts and entertainment district; and 19
1052		-
1053		-	(2) dedicated to the visual or performing arts. 20
1054		-
1055		-	(e) “Arts and entertainment project” means a project that promotes or enhances 21
1056		-	the development of an arts and entertainment district. 22
1057		-
1058		-	(f) (1) “Associated development and carrying costs” means costs that are 23
1059		-	associated with the acquisition and maintenance of an asset. 24
1060		-
1061		-	(2) “Associated development and carrying costs” includes: 25
1062		-
1063		-	(i) settlement costs; 26
1064		-
1065		-	(ii) insurance; 27
1066		-
1067		-	(iii) interest; 28 SENATE BILL 427 23
1068		-
1069		-
1070		-
1071		-	(iv) taxes; 1
1072		-
1073		-	(v) government fees; 2
1074		-
1075		-	(vi) utilities; and 3
1076		-
1077		-	(vii) the costs of managing and securing the asset. 4
1078		-
1079		-	(g) [“Authority” means the Maryland Economic Development Assistance 5
1080		-	Authority. 6
1081		-
1082		-	(h)] “Brownfields Revitalization Incentive Program” means the program in the 7
1083		-	Department that provides financial assistance from the Fund for the redevelopment of 8
1084		-	qualified brownfields sites, as provided in Part VI of this subtitle. 9
1085		-
1086		-	[(i)] (H) (1) “Brownfields site” means a property that: 10
1087		-
1088		-	(i) is located in a county or municipal corporation that elects to 11
1089		-	participate in the Brownfields Revitalization Incentive Program in accordance with § 12
1090		-	5–316 of this subtitle; and 13
1091		-
1092		-	(ii) is: 14
1093		-
1094		-	1. an eligible property, as defined in § 7–501 of the 15
1095		-	Environment Article, that is owned or operated by an inculpable person, as defined in § 16
1096		-	7–501 of the Environment Article; or 17
1097		-
1098		-	2. a property where there is a release, discharge, or 18
1099		-	threatened release of oil, as defined in § 4–401 of the Environment Article, that is subject 19
1100		-	to Title 4 of the Environment Article. 20
1101		-
1102		-	(2) “Brownfields site” does not include property that is owned or operated 21
1103		-	by: 22
1104		-
1105		-	(i) a responsible person as defined in § 7–201 of the Environment 23
1106		-	Article; or 24
1107		-
1108		-	(ii) a person responsible for the discharge, as defined in § 4–401 of 25
1109		-	the Environment Article. 26
1110		-
1111		-	[(j)] (I) “Child care facility” means a facility that is required to be licensed as a 27
1112		-	child care center under Title 9.5, Subtitle 4 of the Education Article. 28
1113		-
1114		-	[(k)] (J) “Child care special loan” means a direct loan to expand or improve child 29
1115		-	care services at a child care facility, as provided in Part VII of this subtitle. 30
1116		-	24 SENATE BILL 427
1117		-
1118		-
1119		-	[(l)] (K) “Corporation” means the Maryland Economic Development 1
1120		-	Corporation. 2
1121		-
1122		-	[(m)] (L) “Financial assistance” means a grant, loan, or investment provided 3
1123		-	under this subtitle. 4
1124		-
1125		-	[(n)] (M) “Fund” means the Maryland Economic [Development Assistance] 5
1126		-	COMPETITIVENESS Fund. 6
1127		-
1128		-	[(o)] (N) “Local government development fund” means a revolving, nonlapsing 7
1129		-	fund that one or more local governments establish for economic development in the areas 8
1130		-	under their jurisdiction. 9
1131		-
1132		-	[(p)] (O) “Local economic development opportunity” means a project that: 10
1133		-
1134		-	(1) is determined by the Department [or Authority] to provide a valuable 11
1135		-	economic development opportunity to the jurisdiction in which the project is located; and 12
1136		-
1137		-	(2) is a priority for and endorsed by the governing body of that jurisdiction. 13
1138		-
1139		-	[(q)] (P) “Local government” means: 14
1140		-
1141		-	(1) a county; 15
1142		-
1143		-	(2) a municipal corporation; 16
1144		-
1145		-	(3) a designated agency or instrumentality of a county; or 17
1146		-
1147		-	(4) a designated agency or instrumentality of a municipal corporation. 18
1148		-
1149		-	[(r)] (Q) “Qualified brownfields site” means a brownfields site that is determined 19
1150		-	by the Department to be eligible for financial assistance under this subtitle. 20
1151		-
1152		-	[(s)] (R) “Responsible person” has the meaning stated in § 7–201 of the 21
1153		-	Environment Article. 22
1154		-
1155		-	[(t)] (S) “Significant strategic economic development opportunity” means a 23
1156		-	project that is determined by the Department [or Authority] to provide a valuable economic 24
1157		-	development opportunity of statewide, regional, or strategic industry impact. 25
1158		-
1159		-	[(u)] (T) “Specialized economic development opportunity” means: 26
1160		-
1161		-	(1) an aquaculture project; 27
1162		-
1163		-	(2) an arts and entertainment enterprise; 28
1164		-	SENATE BILL 427 25
1165		-
1166		-
1167		-	(3) an arts and entertainment project; 1
1168		-
1169		-	(4) the redevelopment of a qualified brownfields site; or 2
1170		-
1171		-	(5) a project to create or expand a child care facility. 3
1172		-
1173		-	[(v)] (U) “Tier I county project” means a project that a local government or the 4
1174		-	Corporation carries out in a Tier I county. 5
1175		-
1176		-	[(w)] (V) “Working capital” means money to be used for current operations of a 6
1177		-	business. 7
1178		-
1179		-	[Part II. Maryland Economic Development Assistance Authority.] 8
1180		-
1181		-	[5–305. 9
1182		-
1183		-	There is a Maryland Economic Development Assistance Authority in the 10
1184		-	Department.] 11
1185		-
1186		-	[5–306. 12
1187		-
1188		-	(a) The Authority consists of the individuals serving as members of the Maryland 13
1189		-	Industrial Development Financing Authority under § 5–406 of this title. 14
1190		-
1191		-	(b) The members of the Authority shall be appointed in accordance with § 5–407 15
1192		-	of this title.] 16
1193		-
1194		-	[5–307. 17
1195		-
1196		-	(a) The members of the Authority may act concurrently in their capacities as 18
1197		-	members of the Authority and of the Maryland Industrial Development Financing 19
1198		-	Authority. 20
1199		-
1200		-	(b) The members of the Authority shall carry out the powers and duties of the 21
1201		-	Authority under this subtitle whether acting: 22
1202		-
1203		-	(1) concurrently as members of the Authority and the Maryland Industrial 23
1204		-	Development Financing Authority; or 24
1205		-
1206		-	(2) as members of either authority alone. 25
1207		-
1208		-	(c) The members of the Authority shall conduct the business of the Authority and 26
1209		-	of the Maryland Industrial Development Financing Authority under Subtitle 4 of this title.] 27
1210		-
1211		-	Part III. Maryland Economic [Development Assistance] COMPETITIVENESS Fund. 28
1212		-	26 SENATE BILL 427
1213		-
1214		-
1215		-	5–310. 1
1216		-
1217		-	There is a Maryland Economic [Development Assistance] COMPETITIVENESS Fund 2
1218		-	in the Department. 3
1219		-
1220		-	5–311. 4
1221		-
1222		-	The purposes of the Fund are to: 5
1223		-
1224		-	(1) expand employment opportunities in the State by providing financial 6
1225		-	assistance to businesses that are engaged in eligible industry sectors, including financial 7
1226		-	assistance for: 8
1227		-
1228		-	(i) aquaculture projects; 9
1229		-
1230		-	(ii) arts and entertainment enterprises; 10
1231		-
1232		-	(iii) arts and entertainment projects; and 11
1233		-
1234		-	(iv) creation and expansion of child care facilities; 12
1235		-
1236		-	(2) provide financial assistance for the redevelopment of qualified 13
1237		-	brownfields sites; 14
1238		-
1239		-	(3) provide financial assistance to local governments and the Corporation 15
1240		-	for economic development projects; and 16
1241		-
1242		-	(4) provide grants to local economic development funds. 17
1243		-
1244		-	5–312. 18
1245		-
1246		-	(a) The Secretary shall administer the Fund. 19
1247		-
1248		-	(b) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 20
1249		-	under § 7–302 of the State Finance and Procurement Article. 21
1250		-
1251		-	(2) The Treasurer shall hold the Fund separately and the Comptroller shall 22
1252		-	account for the Fund. 23
1253		-
1254		-	(c) Any investment earnings of the Fund shall be credited to the Fund. 24
1255		-
1256		-	5–313. 25
	488	+	(b) The appointed members of the Commission shall have substantial interest or 1
	489	+	experience in business or knowledge of business and economic development. 2
	490	+
	491	+	(c) The Commission and its members are subject to the Maryland Public Ethics 3
	492	+	Law. 4
	493	+
	494	+	(d) (1) The term of an appointed member is 3 years. 5
	495	+
	496	+	(2) At the end of a term, an appointed member continues to serve until a 6
	497	+	successor is appointed and qualifies. 7
	498	+
	499	+	(3) A member appointed after a term has begun serves only for the 8
	500	+	remainder of the term and until a successor is appointed and qualifies. 9
	501	+
	502	+	(4) The terms of the appointed members are staggered as required by the 10
	503	+	terms provided for members of the Commission on October 1, 2008. 11
	504	+
	505	+	(5) A member may be removed by the Governor with or without cause.] 12
	506	+
	507	+	[2.5–204. 13
	508	+
	509	+	(a) The Governor shall designate a chair or cochairs from the voting members of 14
	510	+	the Commission. 15
	511	+
	512	+	(b) The Commission may elect an executive committee or form special 16
	513	+	subcommittees from its members to exercise the powers and functions of the Commission 17
	514	+	between meetings of the Commission.] 18
	515	+
	516	+	[2.5–205. 19
	517	+
	518	+	(a) (1) The Commission shall meet as often as its duties require, but not less 20
	519	+	than quarterly. 21
	520	+
	521	+	(2) The chair or cochairs shall designate a time and place for meetings of 22
	522	+	the Commission. 23
	523	+
	524	+	(b) A majority of the voting members of the Commission is a quorum. 24
	525	+
	526	+	(c) A voting member of the Commission: 25
	527	+
	528	+	(1) may not receive compensation as a member of the Commission; but 26
	529	+
	530	+	(2) is entitled to reimbursement in accordance with the Standard State 27
	531	+	Travel Regulations as provided in the State budget. 28
	532	+
	533	+	(d) The Department shall provide staff support to the Commission.] 29 12 SENATE BILL 427
	534	+
	535	+
	536	+
	537	+	[2.5–206. 1
	538	+
	539	+	(a) The Commission may: 2
	540	+
	541	+	(1) adopt bylaws for the conduct of its business; 3
	542	+
	543	+	(2) hire consultants; and 4
	544	+
	545	+	(3) do anything necessary or convenient to carry out its powers and the 5
	546	+	purposes of this subtitle. 6
	547	+
	548	+	(b) The Commission shall: 7
	549	+
	550	+	(1) develop and update an economic development strategic plan for the 8
	551	+	State; 9
	552	+
	553	+	(2) seek ideas and advice from each region of the State to develop the 10
	554	+	economic development strategic plan; 11
	555	+
	556	+	(3) recommend to the Governor and the Secretary the program and 12
	557	+	spending priorities needed to implement the economic development strategic plan; 13
	558	+
	559	+	(4) review the allocation of financing incentives; 14
	560	+
	561	+	(5) participate in encouraging new businesses to locate in the State; 15
	562	+
	563	+	(6) conduct periodic reviews of the economic development activities of the 16
	564	+	Department, the Maryland Economic Development Corporation, the Maryland Technology 17
	565	+	Development Corporation, and the Maryland Public–Private Partnership Marketing 18
	566	+	Corporation for compliance with the economic development strategic plan; 19
	567	+
	568	+	(7) make recommendations to the Governor and the Secretary to improve 20
	569	+	economic development activities that fail to achieve economic development strategic goals 21
	570	+	or are inconsistent with priorities under the economic development strategic plan; and 22
	571	+
	572	+	(8) carry out other economic development activities that the Governor or 23
	573	+	the Secretary requests.] 24
	574	+
	575	+	[2.5–207. 25
	576	+
	577	+	(a) On or before January 15 of each year, the Commission shall report to the 26
	578	+	General Assembly, in accordance with § 2–1257 of the State Government Article, on its 27
	579	+	activities during the previous year. 28
	580	+
	581	+	(b) The report shall include a review of initiatives taken by the Commission and 29
	582	+	the Department to implement the economic development strategic plan.] 30 SENATE BILL 427 13
	583	+
	584	+
	585	+
	586	+	3–201. 1
	587	+
	588	+	(a) In this subtitle the following words have the meanings indicated. 2
	589	+
	590	+	(b) “Advisory Board” means the Maryland Life Sciences Advisory Board. 3
	591	+
	592	+	(c) “Corporation” means the Maryland Technology Development Corporation. 4
	593	+
	594	+	(d) “Life sciences” includes the fields of biotechnology, pharmaceuticals, 5
	595	+	biomedical technologies, life systems technologies, food sciences, environmental sciences, 6
	596	+	and biomedical devices. 7
	597	+
	598	+	3–202. 8
	599	+
	600	+	(a) There is a Maryland Life Sciences Advisory Board in the Department. 9
	601	+
	602	+	(b) The purpose of the Advisory Board is to recommend State and federal policies, 10
	603	+	priorities, practices, and legislation to expedite the creation of private sector jobs through 11
	604	+	the commercialization of life sciences research. 12
	605	+
	606	+	3–203. 13
	607	+
	608	+	(a) The Advisory Board consists of the following 18 members: 14
	609	+
	610	+	(1) the Secretary or the Secretary’s designee; 15
	611	+
	612	+	(2) the Executive Director of the Corporation, or the Executive Director’s 16
	613	+	designee; and 17
	614	+
	615	+	(3) the following members appointed by the Governor: 18
	616	+
	617	+	(i) three representing federal agencies located in the State with life 19
	618	+	sciences missions; 20
	619	+
	620	+	(ii) seven with executive experience in life sciences businesses 21
	621	+	located in the State, at least four of whom represent small businesses; 22
	622	+
	623	+	(iii) four representing institutions of higher education located in the 23
	624	+	State, one of whom shall represent a community college; 24
	625	+
	626	+	(iv) one with general business marketing experience in a life sciences 25
	627	+	business located in the State; and 26
	628	+
	629	+	(v) one member of the general public. 27
	630	+
	631	+	(b) The composition of the Advisory Board shall reflect the racial and gender 28 14 SENATE BILL 427
	632	+
	633	+
	634	+	diversity of the population of the State. 1
	635	+
	636	+	(c) (1) Except for the Secretary or the Secretary’s designee and the Executive 2
	637	+	Director of the Corporation or the Executive Director’s designee, the term of an Advisory 3
	638	+	Board member is [2] 3 years. 4
	639	+
	640	+	(2) At the end of a term, a member continues to serve until a successor is 5
	641	+	appointed and qualifies. 6
	642	+
	643	+	(3) A member who is appointed after a term has begun serves only for the 7
	644	+	rest of the term and until a successor is appointed and qualifies. 8
	645	+
	646	+	(4) THE TERMS OF THE APPO INTED MEMBERS ARE ST AGGERED AS 9
	647	+	REQUIRED BY THE TERM S PROVIDED FOR MEMBE RS OF THE ADVISORY BOARD ON 10
	648	+	JULY 1, 2025. 11
	649	+
	650	+	(d) The Governor may remove a member of the Advisory Board for incompetence, 12
	651	+	misconduct, or failure to perform the duties of the position. 13
	652	+
	653	+	(e) The Governor shall select a chair from among the members of the Advisory 14
	654	+	Board. 15
	655	+
	656	+	(f) The Advisory Board may act with an affirmative vote of eight members. 16
	657	+
	658	+	(g) A member of the Advisory Board: 17
	659	+
	660	+	(1) may not receive compensation as a member of the Advisory Board; but 18
	661	+
	662	+	(2) is entitled to reimbursement for expenses under the Standard State 19
	663	+	Travel Regulations, as provided in the State budget. 20
	664	+
	665	+	3–401. 21
	666	+
	667	+	(a) In this subtitle the following words have the meanings indicated. 22
	668	+
	669	+	[(b) “Board” means the Partnership for Workforce Quality Advisory Board.] 23
	670	+
	671	+	[(c)] (B) “Fund” means the [Partnership for Workforce Quality] TALENT 24
	672	+	ACCELERATOR GRANT Fund. 25
	673	+
	674	+	[(d)] (C) “Program” means the [Partnership for Workforce Quality] TALENT 26
	675	+	ACCELERATOR GRANT Program. 27
	676	+
	677	+	3–402. 28
	678	+
	679	+	There is a [Partnership for Workforce Quality] TALENT ACCELERATOR GRANT 29 SENATE BILL 427 15
	680	+
	681	+
	682	+	Program in the Department. 1
	683	+
	684	+	3–403. 2
	685	+
	686	+	The purpose of the Program is to provide training services to: 3
	687	+
	688	+	(1) improve the competitiveness and productivity of the State’s workforce 4
	689	+	and business community; 5
	690	+
	691	+	(2) upgrade employee skills, or train new employees, for new technologies 6
	692	+	or production processes; and 7
	693	+
	694	+	(3) assist employers located in the State in promoting employment 8
	695	+	stability. 9
	696	+
	697	+	[3–408. 10
	698	+
	699	+	(a) There is a Partnership for Workforce Quality Advisory Board in the 11
	700	+	Department. 12
	701	+
	702	+	(b) The Board shall advise the Secretary.] 13
	703	+
	704	+	[3–409. 14
	705	+
	706	+	(a) The Board consists of the following 15 members: 15
	707	+
	708	+	(1) one member of the Senate of Maryland appointed by the President of 16
	709	+	the Senate; 17
	710	+
	711	+	(2) one member of the House of Delegates appointed by the Speaker of the 18
	712	+	House; and 19
	713	+
	714	+	(3) the following members appointed by the Governor with the advice of 20
	715	+	the Secretary and the chair of the Governor’s Workforce Development Board: 21
	716	+
	717	+	(i) five representatives of business, of which three shall represent 22
	718	+	employers with fewer than 100 employees; 23
	719	+
	720	+	(ii) three representatives of organized labor; 24
	721	+
	722	+	(iii) one representative from the Maryland Higher Education 25
	723	+	Commission; 26
	724	+
	725	+	(iv) one representative from the State Department of Education; 27
	726	+
	727	+	(v) one representative from the Governor’s Workforce Development 28
	728	+	Board; and 29 16 SENATE BILL 427
	729	+
	730	+
	731	+
	732	+	(vi) two representatives of the general public. 1
	733	+
	734	+	(b) (1) The term of a member appointed under subsection (a)(3) of this section 2
	735	+	is 3 years. 3
	736	+
	737	+	(2) The terms of the members appointed under subsection (a)(3) of this 4
	738	+	section are staggered as required by the terms provided for members of the Board on 5
	739	+	October 1, 2008. 6
	740	+
	741	+	(3) At the end of a term, a member continues to serve until a successor is 7
	742	+	appointed and qualifies. 8
	743	+
	744	+	(4) A member who is appointed after a term has begun serves only for the 9
	745	+	rest of the term and until a successor is appointed and qualifies. 10
	746	+
	747	+	(c) A member of the Board: 11
	748	+
	749	+	(1) may not receive compensation as a member of the Board; but 12
	750	+
	751	+	(2) is entitled to reimbursement for expenses under the Standard State 13
	752	+	Travel Regulations. 14
	753	+
	754	+	(d) The Governor shall designate the chair of the Board.] 15
	755	+
	756	+	[3–410. 16
	757	+
	758	+	(a) The Board shall: 17
	759	+
	760	+	(1) submit recommendations to the Secretary concerning overall policy for 18
	761	+	the Program; 19
	762	+
	763	+	(2) recommend a system to evaluate requests for assistance under the 20
	764	+	Program, including eligibility criteria and priorities for assistance; 21
	765	+
	766	+	(3) develop criteria to assess and evaluate Program performance and 22
	767	+	advise the Secretary of the criteria; 23
	768	+
	769	+	(4) consult regularly with the Governor’s Workforce Development Board 24
	770	+	and the Maryland Economic Development Commission concerning the activities of the 25
	771	+	Program; 26
	772	+
	773	+	(5) submit a quarterly report on the Program to the Governor’s Workforce 27
	774	+	Development Board; and 28
	775	+
	776	+	(6) advise the Secretary on coordination of cooperative activities at the 29
	777	+	State and local level between the Department, employers, labor, and other public and 30 SENATE BILL 427 17
	778	+
	779	+
	780	+	private entities involved with workforce quality. 1
	781	+
	782	+	(b) In recommending a system for evaluating requests for assistance, the Board 2
	783	+	shall consider the equal distribution of assistance to all subdivisions of the State.] 3
	784	+
	785	+	3–411. 4
	786	+
	787	+	(a) There is a [Partnership for Workforce Quality] TALENT ACCELERATOR 5
	788	+	GRANT Fund in the Department. 6
	789	+
	790	+	(b) The Secretary shall manage and supervise the Fund. 7
	791	+
	792	+	(c) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 8
	793	+	under § 7–302 of the State Finance and Procurement Article. 9
	794	+
	795	+	(2) The Treasurer shall hold the Fund separately and the Comptroller shall 10
	796	+	account for the Fund. 11
	797	+
	798	+	(d) The Fund consists of: 12
	799	+
	800	+	(1) money appropriated by the State to the Fund; 13
	801	+
	802	+	(2) money made available to the Fund through federal programs; 14
	803	+
	804	+	(3) private contributions to the Fund; 15
	805	+
	806	+	(4) an application or other fee paid to the Program in connection with 16
	807	+	processing a request for financial assistance; and 17
	808	+
	809	+	(5) any other money made available to the Fund. 18
	810	+
	811	+	(e) The Department may use money in the Fund for: 19
	812	+
	813	+	(1) grants to defray the cost of workforce training; and 20
	814	+
	815	+	(2) administrative, actuarial, legal, and technical services for the Program. 21
	816	+
	817	+	(f) Any investment earnings shall be credited to the Fund. 22
	818	+
	819	+	(g) The Governor shall include in the State budget for each fiscal year an 23
	820	+	appropriation of at least $1,000,000 for the [Partnership for Workforce Quality] TALENT 24
	821	+	ACCELERATOR GRANT Program. 25
	822	+
	823	+	5–102. 26
	824	+
	825	+	The Department shall administer the State’s economic development and financial 27 18 SENATE BILL 427
	826	+
	827	+
	828	+	assistance programs and funds including: 1
	829	+
	830	+	(1) the BRAC Revitalization and Incentive Zone Program, under Subtitle 2
	831	+	13 of this title; 3
	832	+
	833	+	(2) [the Build Our Future Grant Pilot Program, under Subtitle 23 of this 4
	834	+	title; 5
	835	+
	836	+	(3)] the Enterprise Fund, under Subtitle 6 of this title; 6
	837	+
	838	+	[(4)] (3) the Enterprise Zones Program, under Subtitle 7 of this title; 7
	839	+
	840	+	[(5)] (4) the Make Office Vacancies Extinct Program, under Subtitle 15 of 8
	841	+	this title; 9
	842	+
	843	+	[(6)] (5) the Maryland Economic Adjustment Fund, under Subtitle 2 of 10
	844	+	this title; 11
	845	+
	846	+	[(7)] (6) the Maryland Economic [Development Assistance Authority 12
	847	+	and] COMPETITIVENESS Fund, under Subtitle 3 of this title; 13
	848	+
	849	+	[(8)] (7) the Maryland Industrial Development Financing Authority, 14
	850	+	under Subtitle 4 of this title; 15
	851	+
	852	+	[(9)] (8) the Maryland [Small Business Development Financin g 16
	853	+	Authority] ECONOMIC INCLUSION FUND, under Subtitle 5 of this title; 17
	854	+
	855	+	[(10)] (9) the Appalachian Regional Development Program, under Title 13, 18
	856	+	Subtitle 1 of this article; 19
	857	+
	858	+	[(11)] (10) jointly with the Department of Housing and Community 20
	859	+	Development, the Community Development Block Grant for Economic Development; AND 21
	860	+
	861	+	[(12) the Regional Institution Strategic Enterprise Zone Program under 22
	862	+	Subtitle 14 of this title; and 23
	863	+
	864	+	(13)] (11) any other programs or funds designated by statute, the 24
	865	+	Governor, or the Secretary. 25
	866	+
	867	+	5–201. 26
	868	+
	869	+	(a) In this subtitle the following words have the meanings indicated. 27
	870	+
	871	+	(b) “Fund” means the Maryland Economic Adjustment Fund. 28
	872	+
	873	+	(c) (1) “Working capital” means money for current operations of a business. 29 SENATE BILL 427 19
	874	+
	875	+
	876	+
	877	+	(2) “Working capital” includes money for supplies, materials, labor, 1
	878	+	equipment, rent, software, marketing, insurance, and fees for professional services. 2
	879	+
	880	+	5–203. 3
	881	+
	882	+	(a) There is a Maryland Economic Adjustment Fund in the Department. 4
	883	+
	884	+	(b) (1) The Department shall administer the Fund. 5
	885	+
	886	+	(2) The Secretary may: 6
	887	+
	888	+	(i) delegate to any unit in the Department the underwriting, closing, 7
	889	+	monitoring, and workout functions for Fund loans; or 8
	890	+
	891	+	(ii) contract with another entity to perform these functions. 9
	892	+
	893	+	(c) The Maryland Economic Adjustment Fund is a special, nonlapsing revolving 10
	894	+	fund that is not subject to reversion under § 7–302 of the State Finance and Procurement 11
	895	+	Article. 12
	896	+
	897	+	(d) (1) The Fund consists of: 13
	898	+
	899	+	(i) federal money allocated or granted to the Fund, including 14
	900	+	adjustment implementation grant money designated for the Fund under the Defense 15
	901	+	Conversion and Defense Economic Adjustment Program of the Economic Development 16
	902	+	Administration of the United States Department of Commerce; 17
	903	+
	904	+	(ii) private money donated or granted to the Fund; 18
	905	+
	906	+	(iii) money appropriated by the State to the Fund; 19
	907	+
	908	+	(iv) premiums, fees, interest payments, and principal payments on 20
	909	+	loans made under this subtitle, including a loan financed by the Economic Development 21
	910	+	Opportunities Program Fund under § 7–314(f) of the State Finance and Procurement 22
	911	+	Article; 23
	912	+
	913	+	(v) proceeds from the sale, disposition, lease, or rental of collateral 24
	914	+	relating to loans under this subtitle; and 25
	915	+
	916	+	(vi) any other money made available to the Fund. 26
	917	+
	918	+	(2) This subtitle does not require an appropriation to the Fund from the 27
	919	+	General Fund of the State, regardless of the availability of other funding sources for the 28
	920	+	Fund. 29
	921	+
	922	+	(e) (1) The Fund shall be used to: 30 20 SENATE BILL 427
	923	+
	924	+
	925	+
	926	+	(i) make loans to new or existing companies with 50 or fewer 1
	927	+	employees; 2
	928	+
	929	+	(ii) make grants to local or regional governmental or nonprofit 3
	930	+	economic development revolving loan funds in the State; and 4
	931	+
	932	+	(iii) pay all expenses and disbursements authorized by the 5
	933	+	Department for administering the Fund. 6
	934	+
	935	+	(2) A loan to an eligible company under this subtitle may include: 7
	936	+
	937	+	(i) advances of loan proceeds for loans; and 8
	938	+
	939	+	(ii) to the extent allowed by the regulations of the federal Economic 9
	940	+	Development Administration of the United States Department of Commerce, money for 10
	941	+	expenses for administrative, legal, actuarial, technical, and other services. 11
	942	+
	943	+	(3) Subject to the restrictions of this subtitle, the Department may make a 12
	944	+	loan from the Fund to an applicant only if: 13
	945	+
	946	+	(i) the applicant meets the qualifications under this subtitle; and 14
	947	+
	948	+	(ii) the applicant meets any additional requirements imposed by the 15
	949	+	source of the money to be loaned. 16
	950	+
	951	+	(f) (1) The Treasurer shall invest the money of the Fund in the same manner 17
	952	+	as other State money may be invested. 18
	953	+
	954	+	(2) Any investment earnings of the Fund shall be credited to the Fund. 19
	955	+
	956	+	(3) The Treasurer shall submit a report each year to the Department on: 20
	957	+
	958	+	(i) the status of the money invested under this subtitle; 21
	959	+
	960	+	(ii) the market value of the assets in the Fund on the date of the 22
	961	+	report; and 23
	962	+
	963	+	(iii) the interest received from investments for the Fund during the 24
	964	+	reporting period. 25
	965	+
	966	+	5–205. 26
	967	+
	968	+	(a) An applicant for a loan under this subtitle shall submit to the Department an 27
	969	+	application on the form that the Department requires. 28
	970	+
	971	+	(b) The application shall include: 29 SENATE BILL 427 21
	972	+
	973	+
	974	+
	975	+	(1) a detailed strategic business plan; 1
	976	+
	977	+	(2) the amount of money required for the activities described in the 2
	978	+	strategic business plan; 3
	979	+
	980	+	(3) the money available to the applicant without financial assistance from 4
	981	+	the Department; 5
	982	+
	983	+	(4) the amount of financial assistance requested from the Department; 6
	984	+
	985	+	(5) information relating to the financial status of the applicant, including, 7
	986	+	if applicable: 8
	987	+
	988	+	(i) a current balance sheet; 9
	989	+
	990	+	(ii) a profit and loss statement; and 10
	991	+
	992	+	(iii) credit references; and 11
	993	+
	994	+	(6) any other relevant information that the Department requests. 12
	995	+
	996	+	(C) THE DEPARTMENT MAY NOT AP PROVE AN APPLICATION FOR FINANCIAL 13
	997	+	ASSISTANCE UNDER THIS SUBTITLE AFTER JUNE 30, 2025. 14
	998	+
	999	+	Subtitle 3. Maryland Economic [Development Assistance Authority and] 15
	1000	+	COMPETITIVENESS Fund. 16
	1001	+
	1002	+	5–301. 17
	1003	+
	1004	+	(a) In this subtitle the following words have the meanings indicated. 18
	1005	+
	1006	+	(b) “Aquaculture project” means a project that encourages innovation, expansion, 19
	1007	+	and modernization of the seafood processing industry or aquaculture industry. 20
	1008	+
	1009	+	(c) “Arts and entertainment district” means an area designated by the Secretary 21
	1010	+	as an arts and entertainment district under Title 4, Subtitle 7 of this article. 22
	1011	+
	1012	+	(d) “Arts and entertainment enterprise” means a for–profit or nonprofit entity 23
	1013	+	that is: 24
	1014	+
	1015	+	(1) located in an arts and entertainment district; and 25
	1016	+
	1017	+	(2) dedicated to the visual or performing arts. 26
	1018	+
	1019	+	(e) “Arts and entertainment project” means a project that promotes or enhances 27 22 SENATE BILL 427
	1020	+
	1021	+
	1022	+	the development of an arts and entertainment district. 1
	1023	+
	1024	+	(f) (1) “Associated development and carrying costs” means costs that are 2
	1025	+	associated with the acquisition and maintenance of an asset. 3
	1026	+
	1027	+	(2) “Associated development and carrying costs” includes: 4
	1028	+
	1029	+	(i) settlement costs; 5
	1030	+
	1031	+	(ii) insurance; 6
	1032	+
	1033	+	(iii) interest; 7
	1034	+
	1035	+	(iv) taxes; 8
	1036	+
	1037	+	(v) government fees; 9
	1038	+
	1039	+	(vi) utilities; and 10
	1040	+
	1041	+	(vii) the costs of managing and securing the asset. 11
	1042	+
	1043	+	(g) [“Authority” means the Maryland Economic Development Assistance 12
	1044	+	Authority. 13
	1045	+
	1046	+	(h)] “Brownfields Revitalization Incentive Program” means the program in the 14
	1047	+	Department that provides financial assistance from the Fund for the redevelopment of 15
	1048	+	qualified brownfields sites, as provided in Part VI of this subtitle. 16
	1049	+
	1050	+	[(i)] (H) (1) “Brownfields site” means a property that: 17
	1051	+
	1052	+	(i) is located in a county or municipal corporation that elects to 18
	1053	+	participate in the Brownfields Revitalization Incentive Program in accordance with § 19
	1054	+	5–316 of this subtitle; and 20
	1055	+
	1056	+	(ii) is: 21
	1057	+
	1058	+	1. an eligible property, as defined in § 7–501 of the 22
	1059	+	Environment Article, that is owned or operated by an inculpable person, as defined in § 23
	1060	+	7–501 of the Environment Article; or 24
	1061	+
	1062	+	2. a property where there is a release, discharge, or 25
	1063	+	threatened release of oil, as defined in § 4–401 of the Environment Article, that is subject 26
	1064	+	to Title 4 of the Environment Article. 27
	1065	+
	1066	+	(2) “Brownfields site” does not include property that is owned or operated 28
	1067	+	by: 29
	1068	+	SENATE BILL 427 23
	1069	+
	1070	+
	1071	+	(i) a responsible person as defined in § 7–201 of the Environment 1
	1072	+	Article; or 2
	1073	+
	1074	+	(ii) a person responsible for the discharge, as defined in § 4–401 of 3
	1075	+	the Environment Article. 4
	1076	+
	1077	+	[(j)] (I) “Child care facility” means a facility that is required to be licensed as a 5
	1078	+	child care center under Title 9.5, Subtitle 4 of the Education Article. 6
	1079	+
	1080	+	[(k)] (J) “Child care special loan” means a direct loan to expand or improve child 7
	1081	+	care services at a child care facility, as provided in Part VII of this subtitle. 8
	1082	+
	1083	+	[(l)] (K) “Corporation” means the Maryland Economic Development 9
	1084	+	Corporation. 10
	1085	+
	1086	+	[(m)] (L) “Financial assistance” means a grant, loan, or investment provided 11
	1087	+	under this subtitle. 12
	1088	+
	1089	+	[(n)] (M) “Fund” means the Maryland Economic [Development Assistance] 13
	1090	+	COMPETITIVENESS Fund. 14
	1091	+
	1092	+	[(o)] (N) “Local government development fund” means a revolving, nonlapsing 15
	1093	+	fund that one or more local governments establish for economic development in the areas 16
	1094	+	under their jurisdiction. 17
	1095	+
	1096	+	[(p)] (O) “Local economic development opportunity” means a project that: 18
	1097	+
	1098	+	(1) is determined by the Department [or Authority] to provide a valuable 19
	1099	+	economic development opportunity to the jurisdiction in which the project is located; and 20
	1100	+
	1101	+	(2) is a priority for and endorsed by the governing body of that jurisdiction. 21
	1102	+
	1103	+	[(q)] (P) “Local government” means: 22
	1104	+
	1105	+	(1) a county; 23
	1106	+
	1107	+	(2) a municipal corporation; 24
	1108	+
	1109	+	(3) a designated agency or instrumentality of a county; or 25
	1110	+
	1111	+	(4) a designated agency or instrumentality of a municipal corporation. 26
	1112	+
	1113	+	[(r)] (Q) “Qualified brownfields site” means a brownfields site that is determined 27
	1114	+	by the Department to be eligible for financial assistance under this subtitle. 28
	1115	+
	1116	+	[(s)] (R) “Responsible person” has the meaning stated in § 7–201 of the 29 24 SENATE BILL 427
	1117	+
	1118	+
	1119	+	Environment Article. 1
	1120	+
	1121	+	[(t)] (S) “Significant strategic economic development opportunity” means a 2
	1122	+	project that is determined by the Department [or Authority] to provide a valuable economic 3
	1123	+	development opportunity of statewide, regional, or strategic industry impact. 4
	1124	+
	1125	+	[(u)] (T) “Specialized economic development opportunity” means: 5
	1126	+
	1127	+	(1) an aquaculture project; 6
	1128	+
	1129	+	(2) an arts and entertainment enterprise; 7
	1130	+
	1131	+	(3) an arts and entertainment project; 8
	1132	+
	1133	+	(4) the redevelopment of a qualified brownfields site; or 9
	1134	+
	1135	+	(5) a project to create or expand a child care facility. 10
	1136	+
	1137	+	[(v)] (U) “Tier I county project” means a project that a local government or the 11
	1138	+	Corporation carries out in a Tier I county. 12
	1139	+
	1140	+	[(w)] (V) “Working capital” means money to be used for current operations of a 13
	1141	+	business. 14
	1142	+
	1143	+	[Part II. Maryland Economic Development Assistance Authority.] 15
	1144	+
	1145	+	[5–305. 16
	1146	+
	1147	+	There is a Maryland Economic Development Assistance Authority in the 17
	1148	+	Department.] 18
	1149	+
	1150	+	[5–306. 19
	1151	+
	1152	+	(a) The Authority consists of the individuals serving as members of the Maryland 20
	1153	+	Industrial Development Financing Authority under § 5–406 of this title. 21
	1154	+
	1155	+	(b) The members of the Authority shall be appointed in accordance with § 5–407 22
	1156	+	of this title.] 23
	1157	+
	1158	+	[5–307. 24
	1159	+
	1160	+	(a) The members of the Authority may act concurrently in their capacities as 25
	1161	+	members of the Authority and of the Maryland Industrial Development Financing 26
	1162	+	Authority. 27
	1163	+
	1164	+	(b) The members of the Authority shall carry out the powers and duties of the 28 SENATE BILL 427 25
	1165	+
	1166	+
	1167	+	Authority under this subtitle whether acting: 1
	1168	+
	1169	+	(1) concurrently as members of the Authority and the Maryland Industrial 2
	1170	+	Development Financing Authority; or 3
	1171	+
	1172	+	(2) as members of either authority alone. 4
	1173	+
	1174	+	(c) The members of the Authority shall conduct the business of the Authority and 5
	1175	+	of the Maryland Industrial Development Financing Authority under Subtitle 4 of this title.] 6
	1176	+
	1177	+	Part III. Maryland Economic [Development Assistance] COMPETITIVENESS Fund. 7
	1178	+
	1179	+	5–310. 8
	1180	+
	1181	+	There is a Maryland Economic [Development Assistance] COMPETITIVENESS Fund 9
	1182	+	in the Department. 10
	1183	+
	1184	+	5–311. 11
	1185	+
	1186	+	The purposes of the Fund are to: 12
	1187	+
	1188	+	(1) expand employment opportunities in the State by providing financial 13
	1189	+	assistance to businesses that are engaged in eligible industry sectors, including financial 14
	1190	+	assistance for: 15
	1191	+
	1192	+	(i) aquaculture projects; 16
	1193	+
	1194	+	(ii) arts and entertainment enterprises; 17
	1195	+
	1196	+	(iii) arts and entertainment projects; and 18
	1197	+
	1198	+	(iv) creation and expansion of child care facilities; 19
	1199	+
	1200	+	(2) provide financial assistance for the redevelopment of qualified 20
	1201	+	brownfields sites; 21
	1202	+
	1203	+	(3) provide financial assistance to local governments and the Corporation 22
	1204	+	for economic development projects; and 23
	1205	+
	1206	+	(4) provide grants to local economic development funds. 24
	1207	+
	1208	+	5–312. 25
	1209	+
	1210	+	(a) The Secretary shall administer the Fund. 26
	1211	+
	1212	+	(b) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 27
	1213	+	under § 7–302 of the State Finance and Procurement Article. 28 26 SENATE BILL 427
	1214	+
	1215	+
	1216	+
	1217	+	(2) The Treasurer shall hold the Fund separately and the Comptroller shall 1
	1218	+	account for the Fund. 2
	1219	+
	1220	+	(c) Any investment earnings of the Fund shall be credited to the Fund. 3
	1221	+
	1222	+	5–313. 4
	1223	+
	1224	+	The Fund consists of: 5
	1225	+
	1226	+	(1) money appropriated in the State budget to the Fund; 6
	1227	+
	1228	+	(2) money made available to the Fund through federal programs or private 7
	1229	+	contributions; 8
	1230	+
	1231	+	(3) repayments of principal and interest from loans made from the Fund; 9
	1232	+
	1233	+	(4) proceeds from the sale, disposition, lease, or rental of collateral related 10
	1234	+	to financial assistance provided by the Department under this subtitle; 11
	1235	+
	1236	+	(5) application or other fees paid to the Fund to process requests for 12
	1237	+	financial assistance; 13
	1238	+
	1239	+	(6) recovery of an investment made by the Department in a business, 14
	1240	+	including an arrangement under which part of the investment is recovered through: 15
	1241	+
	1242	+	(i) a requirement that the Department receive a proportion of cash 16
	1243	+	flow, commissions, royalties, or license fees; 17
	1244	+
	1245	+	(ii) the repurchase from the Department of any of its investment 18
	1246	+	interest; or 19
	1247	+
	1248	+	(iii) the sale of an appreciated asset; 20
	1249	+
	1250	+	(7) repayments received from recipients of conditional grants from the 21
	1251	+	Department; 22
	1252	+
	1253	+	(8) money collected under § 9–229 of the Tax – Property Article; 23
	1254	+
	1255	+	(9) repayments on or recoveries from financial assistance provided from 24
	1256	+	the former: 25
	1257	+
	1258	+	(i) Brownfields Revitalization Incentive Fund; 26
	1259	+
	1260	+	(ii) Child Care Facilities Direct Loan Fund; 27
	1261	+
	1262	+	(iii) Child Care Special Loan Fund; 28 SENATE BILL 427 27
	1263	+
	1264	+
	1265	+
	1266	+	(iv) Maryland Industrial and Commercial Redevelopment Fund; 1
	1267	+
	1268	+	(v) Maryland Industrial Land Fund; 2
	1269	+
	1270	+	(vi) Maryland Seafood and Aquaculture Loan Fund; and 3
	1271	+
	1272	+	(vii) Smart Growth Economic Development Infrastructure Fund; and 4
	1273	+
	1274	+	(10) any other money made available to the Fund. 5
	1275	+
	1276	+	5–314. 6
	1277	+
	1278	+	(a) The Department may use money in the Fund to: 7
	1279	+
	1280	+	(1) provide financial assistance to eligible applicants; and 8
	1281	+
	1282	+	(2) pay expenses for administrative, actuarial, legal, and technical services 9
	1283	+	for the Fund. 10
	1284	+
	1285	+	(b) The Department periodically shall review its portfolio in an effort to ensure: 11
	1286	+
	1287	+	(1) the equitable distribution among the counties of money from the Fund; 12
	1288	+
	1289	+	(2) adequate funding for Tier I county projects; and 13
	1290	+
	1291	+	(3) that no particular Tier I county benefits disproportionately from 14
	1292	+	financial assistance to Tier I counties under this subtitle. 15
	1293	+
	1294	+	5–315. 16
	1295	+
	1296	+	In accordance with § 2.5–109 of this article, the Department shall report on the 17
	1297	+	number, amount, use, and economic benefits of financial assistance provided under this 18
	1298	+	subtitle. 19
	1299	+
	1300	+	5–316. 20
	1301	+
	1302	+	Financial assistance is deemed authorized under this subtitle if it was provided, or 21
	1303	+	approved to be provided, from the following programs that have been incorporated into the 22
	1304	+	Fund: 23
	1305	+
	1306	+	(1) the Brownfields Revitalization Incentive Fund; 24
	1307	+
	1308	+	(2) the Child Care Facilities Direct Loan Fund; 25
	1309	+
	1310	+	(3) the Child Care Special Loan Fund; 26
	1311	+	28 SENATE BILL 427
	1312	+
	1313	+
	1314	+	(4) the Maryland Industrial and Commercial Redevelopment Fund; 1
	1315	+
	1316	+	(5) the Maryland Industrial Land Act; 2
	1317	+
	1318	+	(6) the Maryland Seafood and Aquaculture Loan Fund; and 3
	1319	+
	1320	+	(7) the Smart Growth Economic Development Infrastructure Fund. 4
	1321	+
	1322	+	5–319. 5
	1323	+
	1324	+	(a) [(1) Financial assistance from the Fund not exceeding $2,500,000 may be 6
	1325	+	approved by the Secretary. 7
	1326	+
	1327	+	(2) Except as provided in paragraph (3) of this subsection, financial 8
	1328	+	assistance from the Fund exceeding $2,500,000 requires approval by the Authority. 9
	1329	+
	1330	+	(3) For a Tier I county project, the Secretary may approve financial 10
	1331	+	assistance exceeding $2,500,000. 11
	1332	+
	1333	+	(b) Except as provided in subsection (a)(3) of this section, with respect to requests 12
	1334	+	for financial assistance exceeding $2,500,000: 13
	1335	+
	1336	+	(1) The Department shall evaluate the requests; and 14
	1337	+
	1338	+	(2) The Authority shall: 15
	1339	+
	1340	+	(i) evaluate the requests that have first been evaluated by the 16
	1341	+	Department; 17
	1342	+
	1343	+	(ii) determine whether to approve the requests; and 18
	1344	+
	1345	+	(iii) set the terms and conditions of the financial assistance. 19
	1346	+
	1347	+	(c)] (1) Except as provided in paragraph (2) of this subsection, financial 20
	1348	+	assistance provided to a local government or the Corporation for a project shall be approved 21
	1349	+	by a formal resolution of: 22
	1350	+
	1351	+	(i) the governing body of the jurisdiction in which the project is 23
	1352	+	located; or 24
	1353	+
	1354	+	(ii) if the recipient of the financial assistance is the Corporation, its 25
	1355	+	board of directors. 26
	1356	+
	1357	+	(2) If the recipient of financial assistance is the Corporation for a Tier I 27
	1358	+	county project, the financial assistance shall be approved by formal resolutions of both the 28
	1359	+	board of directors of the Corporation and the governing body of the jurisdiction in which 29
	1360	+	the project is located. 30 SENATE BILL 427 29
	1361	+
	1362	+
	1363	+
	1364	+	(3) A project that is funded by a grant from the Fund to a local government 1
	1365	+	or the Corporation, and carried out by the local government or the Corporation, shall be 2
	1366	+	consistent with the strategy or plan for economic development of the county or municipal 3
	1367	+	corporation in which the project is located. 4
	1368	+
	1369	+	(4) If the Department provides financial assistance to a local government 5
	1370	+	for a project, an interest in that project is later transferred to a third party, and the transfer 6
	1371	+	of the interest is financed by the local government: 7
	1372	+
	1373	+	(i) the local government may assign the financing documents to the 8
	1374	+	Department as a repayment of or return on the Department’s financial assistance to the 9
	1375	+	local government; and 10
	1376	+
	1377	+	(ii) the assignment may not be considered a new financing under this 11
	1378	+	subtitle. 12
	1379	+
	1380	+	[(d)] (B) For a local economic development opportunity, the local government of 13
	1381	+	the jurisdiction in which the project is located shall provide[: 14
	1382	+
	1383	+	(1)] a formal resolution of the governing body of the jurisdiction in which 15
	1384	+	the project is located that endorses the financial assistance to be provided from the Fund[; 16
	1385	+	and 17
	1386	+
	1387	+	(2) as determined by the Department or Authority to evidence the support 18
	1388	+	of the local government for the project: 19
	1389	+
	1390	+	(i) a guarantee, secured by the full faith and credit of the county or 20
	1391	+	municipal corporation in which the project is located, of all or part of the financial 21
	1392	+	assistance to be provided by the Fund; 22
	1393	+
	1394	+	(ii) the financing of part of the costs of the project equal to at least 23
	1395	+	10% of the financial assistance to be provided from the Fund; or 24
	1396	+
	1397	+	(iii) both]. 25
	1398	+
	1399	+	5–320. 26
	1400	+
	1401	+	(a) To be eligible for financial assistance from the Fund, an applicant shall be: 27
	1402	+
	1403	+	(1) a local economic development fund that meets the criteria set forth in 28
	1404	+	Part V of this subtitle; or 29
	1405	+
	1406	+	(2) an individual, private business, nonprofit entity, or local government, 30
	1407	+	or the Corporation that intends to use the requested financial assistance for a project that: 31
	1408	+
	1409	+	(i) except as provided in subsection (b) of this section, is in an 32 30 SENATE BILL 427
	1410	+
	1411	+
	1412	+	eligible industry sector under § 5–321 of this subtitle; and 1
	1413	+
	1414	+	(ii) has a strong potential for expanding or retaining employment 2
	1415	+	opportunities in the State. 3
	1416	+
	1417	+	(b) A project need not be in an eligible industry sector if the applicant: 4
	1418	+
	1419	+	(1) is located in a Tier I county; or 5
	1420	+
	1421	+	(2) (i) is a local government or the Corporation; and 6
	1422	+
	1423	+	(ii) does not intend to use the financial assistance to carry out a 7
	1424	+	project that benefits a particular private sector entity. 8
	1425	+
	1426	+	(c) In form and content acceptable to the Department, an applicant for financial 9
	1427	+	assistance from the Fund shall submit to the Department an application that contains: 10
	1428	+
	1429	+	(1) the information that the Department [or Authority] considers 11
	1430	+	necessary to evaluate the request for financial assistance; and 12
	1431	+
	1432	+	(2) for a Tier I county project: 13
	1433	+
	1434	+	(i) a marketing plan designed to market the project to prospective 14
	1435	+	businesses; 15
	1436	+
	1437	+	(ii) a statement of planned marketing expenditures as a percent of 16
	1438	+	the total financial assistance amount requested; and 17
	1439	+
	1440	+	(iii) a plan for the project that is consistent with the county’s local 18
	1441	+	strategic economic development plan as to the location and type of project. 19
	1442	+
	1443	+	5–321. 20
	1444	+
	1445	+	(a) [(1) After consulting with the Department and the Maryland Department 21
	1446	+	of Labor, each year the Maryland Economic Development Commission shall: 22
	1447	+
	1448	+	(i) evaluate the potential employment and economic growth of 23
	1449	+	Maryland’s industry sectors; and 24
	1450	+
	1451	+	(ii) recommend eligible industry sectors to the Authority. 25
	1452	+
	1453	+	(2) Each year the Authority shall: 26
	1454	+
	1455	+	(i) consider the recommendation of the Maryland Economic 27
	1456	+	Development Commission; and 28
	1457	+
	1458	+	(ii) establish a list of industry sectors that will be eligible for 29 SENATE BILL 427 31
	1459	+
	1460	+
	1461	+	financial assistance from the Fund. 1
	1462	+
	1463	+	(3) In determining whether an applicant is engaged in an eligible industry 2
	1464	+	sector, the Department shall consider the definitions set forth in the North American 3
	1465	+	Industry Classification System.] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS 4
	1466	+	SECTION, IN ORDER T O BE CONSIDERED ELIG IBLE FOR FINANCIAL A SSISTANCE 5
	1467	+	FROM THE FUND, A PROJECT SHALL BE ENGAGED IN AN ELI GIBLE INDUSTRY 6
	1468	+	SECTOR AS ESTABLISHE D THROUGH § 2.5–106 OF THIS ARTICLE. 7
	1469	+
	1470	+	(b) (1) For the purpose of providing financial assistance under this subtitle, 8
	1471	+	the following are ALSO deemed to be in eligible industry sectors: 9
	1472	+
	1473	+	(i) aquaculture projects; 10
	1474	+
	1475	+	(ii) arts and entertainment enterprises; 11
	1476	+
	1477	+	(iii) arts and entertainment projects; 12
	1478	+
	1479	+	(iv) redevelopment of qualified brownfields sites; 13
	1480	+
	1481	+	(v) creation or expansion of child care facilities; 14
	1482	+
	1483	+	(vi) projects in areas that are declared to be federal disaster areas 15
	1484	+	within 1 year before the Department receives an application for financial assistance under 16
	1485	+	this subtitle; and 17
	1486	+
	1487	+	(vii) feasibility studies. 18
	1488	+
	1489	+	(2) The requirements specifically imposed on significant strategic economic 19
	1490	+	development opportunities and local economic development opportunities under this 20
	1491	+	subtitle do not apply to the items listed in paragraph (1) of this subsection. 21
	1492	+
	1493	+	5–322. 22
	1494	+
	1495	+	(a) Financial assistance from the Fund may be used only to finance costs incurred 23
	1496	+	for: 24
	1497	+
	1498	+	(1) construction or acquisition of a building or real property, and associated 25
	1499	+	development and carrying costs; 26
	1500	+
	1501	+	(2) construction, acquisition, or installation of equipment, furnishings, 27
	1502	+	fixtures, leasehold improvements, site improvements, or infrastructure improvements, 28
	1503	+	including rail line enhancements on or to the site of an economic development project, and 29
	1504	+	associated development and carrying costs; 30
	1505	+
	1506	+	(3) working capital for significant strategic economic development 31
	1507	+	opportunities, arts and entertainment enterprises, or arts and entertainment projects; 32 32 SENATE BILL 427
	1508	+
	1509	+
	1510	+
	1511	+	(4) redevelopment of qualified brownfields sites; 1
	1512	+
	1513	+	(5) subject to § 5–325(b)(3) of this subtitle, construction, purchase, or 2
	1514	+	renovation of real property, fixtures, or equipment related to a child care facility; 3
	1515	+
	1516	+	(6) if supported by a resolution adopted by the governing body of the 4
	1517	+	jurisdiction in which a project may be located, feasibility studies; 5
	1518	+
	1519	+	(7) subject to § 5–325(b)(4) of this subtitle, preparation of a county’s or 6
	1520	+	municipal corporation’s strategy or plan for economic development; and 7
	1521	+
	1522	+	(8) a project intended to assist businesses in areas that are declared to be 8
	1523	+	federal disaster areas, but only if the Department receives an application for financial 9
	1524	+	assistance within 1 year after the declaration of the federal disaster area. 10
	1525	+
	1526	+	(b) Financial assistance from the Fund may not be used to refinance existing debt. 11
	1527	+
	1528	+	5–323. 12
	1529	+
	1530	+	Financial assistance from the Fund may not exceed the lesser of: 13
	1531	+
	1532	+	(1) $10,000,000; or 14
	1533	+
	1534	+	(2) 20% of the Fund balance. 15
	1535	+
	1536	+	5–324. 16
	1537	+
	1538	+	(a) Each subsection of this section is subject to § 5–323 of this subtitle. 17
	1539	+
	1540	+	(b) If the Department [or Authority] determines a project to be a significant 18
	1541	+	strategic economic development opportunity, the Department [or Authority] may provide 19
	1542	+	a loan from the Fund for the project to an individual, private business, nonprofit entity, or 20
	1543	+	the Corporation in an amount not exceeding $10,000,000. 21
	1544	+
	1545	+	(c) If the Department [or Authority] determines a project to be a local economic 22
	1546	+	development opportunity, the Department [or Authority] may provide financial assistance 23
	1547	+	from the Fund for the project to an individual, private business, nonprofit entity, or the 24
	1548	+	Corporation in an amount not exceeding: 25
	1549	+
	1550	+	(1) [$5,000,000] $7,500,000 for a loan or investment; and 26
	1551	+
	1552	+	(2) [$2,000,000] $5,000,000 for a grant. 27
	1553	+
	1554	+	(d) (1) Financial assistance provided to a local government or the Corporation 28
	1555	+	to finance a project may be: 29 SENATE BILL 427 33
	1556	+
	1557	+
	1558	+
	1559	+	(i) in the form of a grant, loan, or investment; and 1
	1560	+
	1561	+	(ii) except as provided in paragraph (2) of this subsection, in an 2
	1562	+	amount not exceeding [$3,000,000] $5,000,000. 3
	1563	+
	1564	+	(2) Financial assistance for a Tier I county project may be in an amount 4
	1565	+	determined by the Department. 5
	1566	+
	1567	+	(3) A grant to a local economic development fund is subject to the 6
	1568	+	requirements of Part V of this subtitle. 7
	1569	+
	1570	+	(e) Financial assistance for a specialized economic development opportunity may 8
	1571	+	be: 9
	1572	+
	1573	+	(1) provided to an individual, private business, nonprofit entity, or local 10
	1574	+	government, or the Corporation; 11
	1575	+
	1576	+	(2) in the form of a grant, loan, or investment; and 12
	1577	+
	1578	+	(3) in an amount determined by the Department [or Authority]. 13
	1579	+
	1580	+	5–325. 14
	1581	+
	1582	+	(a) Subject to the restrictions of this subtitle, the Department [or Authority] may 15
	1583	+	impose the terms and conditions on financial assistance from the Fund as either considers 16
	1584	+	appropriate. 17
	1585	+
	1586	+	(b) (1) Except as provided in paragraph (2), (3), or (4) of this subsection, 18
	1587	+	financial assistance from the Fund may not exceed 70% of the total costs of the project being 19
	1588	+	financed. 20
	1589	+
	1590	+	(2) Financial assistance from the Fund may constitute 100% of the total 21
	1591	+	costs of the project being financed if: 22
	1592	+
	1593	+	(i) the recipient is the Corporation; or 23
	1594	+
	1595	+	(ii) the financial assistance is for: 24
	1596	+
	1597	+	1. an arts and entertainment enterprise; 25
	1598	+
	1599	+	2. an arts and entertainment project; or 26
	1600	+
	1601	+	3. a Tier I county project. 27
	1602	+
	1603	+	(3) (i) Except as provided in subparagraph (ii) of this paragraph, 28
	1604	+	financial assistance from the Fund: 29 34 SENATE BILL 427
	1605	+
	1606	+
	1607	+
	1608	+	1. may be used to finance up to 50% of the costs of 1
	1609	+	construction, purchase, or renovation of real property, fixtures, or equipment related to a 2
	1610	+	child care facility; but 3
	1611	+
	1612	+	2. may not be used for working capital, supplies, or inventory 4
	1613	+	related to a child care facility. 5
	1614	+
	1615	+	(ii) Financial assistance from the Fund may be used to finance up to 6
	1616	+	20% of the costs described in subparagraph (i) of this paragraph incurred by a business that 7
	1617	+	has received or will receive a day care loan insured by the Maryland Industrial 8
	1618	+	Development Financing Authority. 9
	1619	+
	1620	+	(4) Financial assistance for preparation of a strategy or plan for economic 10
	1621	+	development of a county or municipal corporation may not exceed: 11
	1622	+
	1623	+	(i) 50% of the costs of preparation; or 12
	1624	+
	1625	+	(ii) $50,000 in a 3–year period. 13
	1626	+
	1627	+	(c) [(1) A loan from the Fund shall bear an interest rate below the market rate 14
	1628	+	of interest, as determined by the Department, if the loan is for: 15
	1629	+
	1630	+	(i) a significant strategic economic development opportunity; or 16
	1631	+
	1632	+	(ii) a specialized economic development opportunity. 17
	1633	+
	1634	+	(2) A loan from the Fund for a Tier I county project shall bear an interest 18
	1635	+	rate determined by the Department or the Authority. 19
	1636	+
	1637	+	(3) A loan from the Fund shall bear an interest rate not exceeding 20
	1638	+	one–eighth of 1% plus the net interest cost of the most recent State general obligation bond 21
	1639	+	issue preceding the approval of the loan if the loan is: 22
	1640	+
	1641	+	(i) for a local economic development opportunity; or 23
	1642	+
	1643	+	(ii) to a local government. 24
	1644	+
	1645	+	(4) A loan from the Fund may not bear an interest rate of less than 3% 25
	1646	+	unless: 26
	1647	+
	1648	+	(i) the project funded by the loan is located in an area of high 27
	1649	+	unemployment; or 28
	1650	+
	1651	+	(ii) the Department determines that the borrower is carrying out a 29
	1652	+	compelling economic development initiative. 30
	1653	+	SENATE BILL 427 35
	1654	+
	1655	+
	1656	+	(d) (1) The Department may waive interest during the first 2 years of the term 1
	1657	+	of a loan from the Fund. 2
	1658	+
	1659	+	(2) If a borrower defaults on a loan from the Fund, the Department may 3
	1660	+	impose an interest rate that exceeds the limits set forth in subsection (c)(1) or (3) of this 4
	1661	+	section. 5
	1662	+
	1663	+	(e) The term of a loan from the Fund may not exceed: 6
	1664	+
	1665	+	(1) for working capital, 3 years; 7
	1666	+
	1667	+	(2) for financing equipment, furnishings, or fixtures, the lesser of 15 years 8
	1668	+	or the useful life of the asset, as determined by the Department; 9
	1669	+
	1670	+	(3) for financing the construction or acquisition of buildings and real 10
	1671	+	property, 25 years; and 11
	1672	+
	1673	+	(4) for financing the redevelopment of a qualified brownfields site or a Tier 12
	1674	+	I county project, a term approved by the Department or Authority] THE DEPARTMENT 13
	1675	+	SHALL DETERMINE WHETHER A LOAN FROM THE FUND SHALL BEAR INTER EST AND, 14
	1676	+	IF SO, THE INTEREST RATE. 15
	1677	+
	1678	+	5–329. 16
	1679	+
	1680	+	(a) A local government may apply to the Department for a grant from the Fund 17
	1681	+	to a local economic development fund. 18
	1682	+
	1683	+	(b) In determining whether to approve a grant to a local economic development 19
	1684	+	fund, the Department [or Authority] shall consider and determine: 20
	1685	+
	1686	+	(1) the average rate of unemployment for the local jurisdiction in 21
	1687	+	comparison to the average rate of unemployment for the State; 22
	1688	+
	1689	+	(2) whether the local government currently administers a local economic 23
	1690	+	development fund; 24
	1691	+
	1692	+	(3) the ability of the local government to leverage private money; 25
	1693	+
	1694	+	(4) the level of financial commitment provided by the local government; 26
	1695	+	and 27
	1696	+
	1697	+	(5) any other factors that the Department [or Authority] considers 28
	1698	+	relevant. 29
	1699	+
	1700	+	5–338. 30
	1701	+	36 SENATE BILL 427
	1702	+
	1703	+
	1704	+	(d) (1) The Department shall notify the person whether the person qualifies 1
	1705	+	for financial assistance for the redevelopment of a brownfields site within 30 days after the 2
	1706	+	Department receives a request under subsection (c) of this section if: 3
	1707	+
	1708	+	(i) the Department of the Environment approves the participation 4
	1709	+	in the Voluntary Cleanup Plan or a corrective action plan; and 5
	1710	+
	1711	+	(ii) the Department [or Authority] approves the financial assistance. 6
	1712	+
	1713	+	(2) The notice shall specify which of the criteria in subsection (b) of this 7
	1714	+	section that the person meets. 8
	1715	+
	1716	+	5–401. 9
	1717	+
	1718	+	(a) In this subtitle the following words have the meanings indicated. 10
	1719	+
	1720	+	(b) “Authority” means the Maryland Industrial Development Financing 11
	1721	+	Authority. 12
	1722	+
	1723	+	(p) “Fund” means the Industrial Development Fund established under § 5–423 of 13
	1724	+	this subtitle. 14
	1725	+
	1726	+	5–464. 15
	1727	+
	1728	+	THE AUTHORITY AND THE SECRETARY MAY NOT APP ROVE FINANCIAL 16
	1729	+	ASSISTANCE FROM THE FUND OR THE ISSUANCE OF BONDS UNDER THIS SUBTITLE 17
	1730	+	AFTER JUNE 30, 2025. 18
	1731	+
	1732	+	Subtitle 5. Maryland [Small Business Development Financing Authority] ECONOMIC 19
	1733	+	INCLUSION FUND. 20
	1734	+
	1735	+	5–501. 21
	1736	+
	1737	+	(a) In this subtitle the following words have the meanings indicated. 22
	1738	+
	1739	+	(b) [“Authority” means the Maryland Small Business Development Financing 23
	1740	+	Authority. 24
	1741	+
	1742	+	(c)] “Financial institution” means: 25
	1743	+
	1744	+	(1) a financial institution, as defined in § 1–101 of the Financial 26
	1745	+	Institutions Article; and 27
	1746	+
	1747	+	(2) any other lender that the Authority approves. 28
	1748	+
	1749	+	(C) “FUND” MEANS THE MARYLAND ECONOMIC INCLUSION FUND. 29 SENATE BILL 427 37
	1750	+
	1751	+
	1752	+
	1753	+	(d) (1) “Loan document” means an instrument or agreement that evidences, 1
	1754	+	secures, or guarantees a loan. 2
	1755	+
	1756	+	(2) “Loan document” includes a note, financing statement, mortgage, 3
	1757	+	pledge, assignment, loan and security agreement, or guaranty. 4
	1758	+
	1759	+	(e) (1) “Working capital” means money used to meet the cash needs of an 5
	1760	+	operating business entity. 6
	1761	+
	1762	+	(2) “Working capital” does not include money used for a capital purchase. 7
	1763	+
	1764	+	5–502. 8
	1765	+
	1766	+	(a) The General Assembly finds that: 9
	1767	+
	1768	+	(1) the inability of socially or economically disadvantaged individuals to 10
	1769	+	obtain working capital is a major limitation on their opportunity to win and perform 11
	1770	+	government and other contracts; 12
	1771	+
	1772	+	(2) because socially or economically disadvantaged individuals frequently 13
	1773	+	have been awarded government or other contracts but have lacked the working capital to 14
	1774	+	post a bond, buy supplies needed to begin the work, or pay employees, these individuals 15
	1775	+	have been unable to accept the contracts; 16
	1776	+
	1777	+	(3) some individuals are unable to obtain government and other contracts 17
	1778	+	for reasons other than the cost to the owner or the ability to perform the contract work 18
	1779	+	competently; 19
	1780	+
	1781	+	(4) socially or economically disadvantaged individuals frequently lack 20
	1782	+	adequate capital to sustain and expand their businesses and to hire and train employees; 21
	1783	+
	1784	+	(5) because high risk, problem, or uncollectible loans are not in the interest 22
	1785	+	of financial institutions, financial institutions generally are reluctant to lend money to 23
	1786	+	socially or economically disadvantaged individuals with insufficient records of 24
	1787	+	performance; 25
	1788	+
	1789	+	(6) the inability of businesses owned by socially or economically 26
	1790	+	disadvantaged individuals to obtain long–term financing is a major limitation on their 27
	1791	+	opportunity to survive and expand; and 28
	1792	+
	1793	+	(7) the public welfare is served by promoting the viability and expansion of 29
	1794	+	businesses owned by economically or socially disadvantaged individuals, retaining or 30
	1795	+	increasing the employment of these individuals, and expanding the taxable base of the 31
	1796	+	economy of the State. 32
	1797	+
	1798	+	(b) The purposes of the [Authority] FUND are: 33 38 SENATE BILL 427
	1799	+
	1800	+
	1801	+
	1802	+	(1) to assist socially or economically disadvantaged individuals to obtain 1
	1803	+	adequate working capital to begin, continue, and complete projects[, the majority of funding 2
	1804	+	for which is provided by government entities or utilities]; 3
	1805	+
	1806	+	(2) to encourage socially or economically disadvantaged individuals to seek 4
	1807	+	government and other contracts; 5
	1808	+
	1809	+	(3) to encourage financial institutions to make loans to these individuals; 6
	1810	+	and 7
	1811	+
	1812	+	(4) to assist small businesses that are unable to obtain adequate business 8
	1813	+	financing on reasonable terms through normal financing channels because the businesses 9
	1814	+	do not meet the established credit criteria of financial institutions. 10
	1815	+
	1816	+	Part II. Maryland [Small Business Development Financing Authority] ECONOMIC 11
	1817	+	INCLUSION FUND. 12
	1818	+
	1819	+	5–505. 13
	1820	+
	1821	+	(A) There is a Maryland [Small Business Development Financing Authority] 14
	1822	+	ECONOMIC INCLUSION FUND in the Department. 15
	1823	+
	1824	+	(B) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO 16
	1825	+	REVERSION UNDER § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 17
	1826	+
	1827	+	(C) THE TREASURER SHALL : 18
	1828	+
	1829	+	(1) INVEST THE MONEY IN THE FUND IN THE SAME MANN ER AS OTHER 19
	1830	+	STATE MONEY MAY BE IN VESTED; 20
	1831	+
	1832	+	(2) CREDIT ANY INVESTMEN T EARNINGS TO THE FUND; AND 21
	1833	+
	1834	+	(3) REPORT EACH YEAR TO THE DEPARTMENT ON : 22
	1835	+
	1836	+	(I) THE STATUS OF THE MO NEY INVESTED UNDER T HIS 23
	1837	+	SUBTITLE; 24
	1838	+
	1839	+	(II) THE MARKET VALUE OF THE ASSETS IN THE FUND AS OF THE 25
	1840	+	DATE OF THE REPORT ; AND 26
	1841	+
	1842	+	(III) THE INTEREST RECEIVE D FROM INVESTMENTS D URING THE 27
	1843	+	PERIOD COVERED BY TH E REPORT. 28
	1844	+
	1845	+	(D) (1) THE FUND IS THE SUCCESSOR OF THE SMALL BUSINESS 29 SENATE BILL 427 39
	1846	+
	1847	+
	1848	+	DEVELOPMENT CONTRACT FINANCING FUND, THE SMALL BUSINESS 1
	1849	+	DEVELOPMENT GUARANTY FUND, THE EQUITY PARTICIPATION INVESTMENT 2
	1850	+	INCENTIVE PROGRAM FUND, AND THE SMALL BUSINESS SURETY BOND FUND 3
	1851	+	ESTABLISHED UNDER TH E MARYLAND SMALL BUSINESS DEVELOPMENT 4
	1852	+	FINANCING AUTHORITY. 5
	1853	+
	1854	+	(2) ALL FINANCIAL ASSISTANCE TRANSACTI ONS AND OBLIGATIONS 6
	1855	+	APPROVED BY THE MARYLAND SMALL BUSINESS DEVELOPMENT FINANCING 7
	1856	+	AUTHORITY SHALL CONTI NUE AS OBLIGATIONS O F THE FUND AND ARE 8
	1857	+	AUTHORIZED UNDER THI S SUBTITLE. 9
	1858	+
	1859	+	[5–506. 10
	1860	+
	1861	+	(a) The Authority consists of the following nine members: 11
	1862	+
	1863	+	(1) seven members appointed by the Governor; 12
	1864	+
	1865	+	(2) the Secretary or the Secretary’s designee; and 13
	1866	+
	1867	+	(3) (i) the Comptroller or the Treasurer as designated by the Governor; 14
	1868	+	or 15
	1869	+
	1870	+	(ii) the designee of the Governor’s designee. 16
	1871	+
	1872	+	(b) (1) The term of an appointed member is 5 years. 17
	1873	+
	1874	+	(2) The terms of appointed members are staggered as required for 18
	1875	+	appointments to the Authority on October 1, 2008. 19
	1876	+
	1877	+	(3) At the end of a term, an appointed member continues to serve until a 20
	1878	+	successor is appointed and qualifies. 21
	1879	+
	1880	+	(4) A member who is appointed after a term has begun serves only for the 22
	1881	+	rest of the term and until a successor is appointed and qualifies. 23
	1882	+
	1883	+	(c) The Governor may remove an appointed member for cause.] 24
	1884	+
	1885	+	5–506. 25
1257	1886
1258	1887		THE FUND CONSISTS OF : 26
1259	1888
1260		-	(1) money appropriated in the State budget to the Fund; 27
1261		-	SENATE BILL 427 27
1262		-
1263		-
1264		-	(2) money made available to the Fund through federal programs or private 1
1265		-	contributions; 2
1266		-
1267		-	(3) repayments of principal and interest from loans made from the Fund; 3
1268		-
1269		-	(4) proceeds from the sale, disposition, lease, or rental of collateral related 4
1270		-	to financial assistance provided by the Department under this subtitle; 5
1271		-
1272		-	(5) application or other fees paid to the Fund to process requests for 6
1273		-	financial assistance; 7
1274		-
1275		-	(6) recovery of an investment made by the Department in a business, 8
1276		-	including an arrangement under which part of the investment is recovered through: 9
1277		-
1278		-	(i) a requirement that the Department receive a proportion of cash 10
1279		-	flow, commissions, royalties, or license fees; 11
1280		-
1281		-	(ii) the repurchase from the Department of any of its investment 12
1282		-	interest; or 13
1283		-
1284		-	(iii) the sale of an appreciated asset; 14
1285		-
1286		-	(7) repayments received from recipients of conditional grants from the 15
1287		-	Department; 16
1288		-
1289		-	(8) money collected under § 9–229 of the Tax – Property Article; 17
1290		-
1291		-	(9) repayments on or recoveries from financial assistance provided from 18
1292		-	the former: 19
1293		-
1294		-	(i) Brownfields Revitalization Incentive Fund; 20
1295		-
1296		-	(ii) Child Care Facilities Direct Loan Fund; 21
1297		-
1298		-	(iii) Child Care Special Loan Fund; 22
1299		-
1300		-	(iv) Maryland Industrial and Commercial Redevelopment Fund; 23
1301		-
1302		-	(v) Maryland Industrial Land Fund; 24
1303		-
1304		-	(vi) Maryland Seafood and Aquaculture Loan Fund; and 25
1305		-
1306		-	(vii) Smart Growth Economic Development Infrastructure Fund; and 26
1307		-
1308		-	(10) any other money made available to the Fund. 27
1309		-
1310		-	5–314. 28 28 SENATE BILL 427
1311		-
1312		-
1313		-
1314		-	(a) The Department may use money in the Fund to: 1
1315		-
1316		-	(1) provide financial assistance to eligible applicants; and 2
1317		-
1318		-	(2) pay expenses for administrative, actuarial, legal, and technical services 3
1319		-	for the Fund. 4
1320		-
1321		-	(b) The Department periodically shall review its portfolio in an effort to ensure: 5
1322		-
1323		-	(1) the equitable distribution among the counties of money from the Fund; 6
1324		-
1325		-	(2) adequate funding for Tier I county projects; and 7
1326		-
1327		-	(3) that no particular Tier I county benefits disproportionately from 8
1328		-	financial assistance to Tier I counties under this subtitle. 9
1329		-
1330		-	5–315. 10
1331		-
1332		-	In accordance with § 2.5–109 of this article, the Department shall report on the 11
1333		-	number, amount, use, and economic benefits of financial assistance provided under this 12
1334		-	subtitle. 13
1335		-
1336		-	5–316. 14
1337		-
1338		-	Financial assistance is deemed authorized under this subtitle if it was provided, or 15
1339		-	approved to be provided, from the following programs that have been incorporated into the 16
1340		-	Fund: 17
1341		-
1342		-	(1) the Brownfields Revitalization Incentive Fund; 18
1343		-
1344		-	(2) the Child Care Facilities Direct Loan Fund; 19
1345		-
1346		-	(3) the Child Care Special Loan Fund; 20
1347		-
1348		-	(4) the Maryland Industrial and Commercial Redevelopment Fund; 21
1349		-
1350		-	(5) the Maryland Industrial Land Act; 22
1351		-
1352		-	(6) the Maryland Seafood and Aquaculture Loan Fund; and 23
1353		-
1354		-	(7) the Smart Growth Economic Development Infrastructure Fund. 24
1355		-
1356		-	5–319. 25
1357		-
1358		-	(a) [(1) Financial assistance from the Fund not exceeding $2,500,000 may be 26
1359		-	approved by the Secretary. 27 SENATE BILL 427 29
1360		-
1361		-
1362		-
1363		-	(2) Except as provided in paragraph (3) of this subsection, financial 1
1364		-	assistance from the Fund exceeding $2,500,000 requires approval by the Authority. 2
1365		-
1366		-	(3) For a Tier I county project, the Secretary may approve financial 3
1367		-	assistance exceeding $2,500,000. 4
1368		-
1369		-	(b) Except as provided in subsection (a)(3) of this section, with respect to requests 5
1370		-	for financial assistance exceeding $2,500,000: 6
1371		-
1372		-	(1) The Department shall evaluate the requests; and 7
1373		-
1374		-	(2) The Authority shall: 8
1375		-
1376		-	(i) evaluate the requests that have first been evaluated by the 9
1377		-	Department; 10
1378		-
1379		-	(ii) determine whether to approve the requests; and 11
1380		-
1381		-	(iii) set the terms and conditions of the financial assistance. 12
1382		-
1383		-	(c)] (1) Except as provided in paragraph (2) of this subsection, financial 13
1384		-	assistance provided to a local government or the Corporation for a project shall be approved 14
1385		-	by a formal resolution of: 15
1386		-
1387		-	(i) the governing body of the jurisdiction in which the project is 16
1388		-	located; or 17
1389		-
1390		-	(ii) if the recipient of the financial assistance is the Corporation, its 18
1391		-	board of directors. 19
1392		-
1393		-	(2) If the recipient of financial assistance is the Corporation for a Tier I 20
1394		-	county project, the financial assistance shall be approved by formal resolutions of both the 21
1395		-	board of directors of the Corporation and the governing body of the jurisdiction in which 22
1396		-	the project is located. 23
1397		-
1398		-	(3) A project that is funded by a grant from the Fund to a local government 24
1399		-	or the Corporation, and carried out by the local government or the Corporation, shall be 25
1400		-	consistent with the strategy or plan for economic development of the county or municipal 26
1401		-	corporation in which the project is located. 27
1402		-
1403		-	(4) If the Department provides financial assistance to a local government 28
1404		-	for a project, an interest in that project is later transferred to a third party, and the transfer 29
1405		-	of the interest is financed by the local government: 30
1406		-	30 SENATE BILL 427
1407		-
1408		-
1409		-	(i) the local government may assign the financing documents to the 1
1410		-	Department as a repayment of or return on the Department’s financial assistance to the 2
1411		-	local government; and 3
1412		-
1413		-	(ii) the assignment may not be considered a new financing under this 4
1414		-	subtitle. 5
1415		-
1416		-	[(d)] (B) For a local economic development opportunity, the local government of 6
1417		-	the jurisdiction in which the project is located shall provide[: 7
1418		-
1419		-	(1)] a formal resolution of the governing body of the jurisdiction in which 8
1420		-	the project is located that endorses the financial assistance to be provided from the Fund[; 9
1421		-	and 10
1422		-
1423		-	(2) as determined by the Department or Authority to evidence the support 11
1424		-	of the local government for the project: 12
1425		-
1426		-	(i) a guarantee, secured by the full faith and credit of the county or 13
1427		-	municipal corporation in which the project is located, of all or part of the financial 14
1428		-	assistance to be provided by the Fund; 15
1429		-
1430		-	(ii) the financing of part of the costs of the project equal to at least 16
1431		-	10% of the financial assistance to be provided from the Fund; or 17
1432		-
1433		-	(iii) both]. 18
1434		-
1435		-	5–320. 19
1436		-
1437		-	(a) To be eligible for financial assistance from the Fund, an applicant shall be: 20
1438		-
1439		-	(1) a local economic development fund that meets the criteria set forth in 21
1440		-	Part V of this subtitle; or 22
1441		-
1442		-	(2) an individual, private business, nonprofit entity, or local government, 23
1443		-	or the Corporation that intends to use the requested financial assistance for a project that: 24
1444		-
1445		-	(i) except as provided in subsection (b) of this section, is in an 25
1446		-	eligible industry sector under § 5–321 of this subtitle; and 26
1447		-
1448		-	(ii) has a strong potential for expanding or retaining employment 27
1449		-	opportunities in the State. 28
1450		-
1451		-	(b) A project need not be in an eligible industry sector if the applicant: 29
1452		-
1453		-	(1) is located in a Tier I county; or 30
1454		-
1455		-	(2) (i) is a local government or the Corporation; and 31 SENATE BILL 427 31
1456		-
1457		-
1458		-
1459		-	(ii) does not intend to use the financial assistance to carry out a 1
1460		-	project that benefits a particular private sector entity. 2
1461		-
1462		-	(c) In form and content acceptable to the Department, an applicant for financial 3
1463		-	assistance from the Fund shall submit to the Department an application that contains: 4
1464		-
1465		-	(1) the information that the Department [or Authority] considers 5
1466		-	necessary to evaluate the request for financial assistance; and 6
1467		-
1468		-	(2) for a Tier I county project: 7
1469		-
1470		-	(i) a marketing plan designed to market the project to prospective 8
1471		-	businesses; 9
1472		-
1473		-	(ii) a statement of planned marketing expenditures as a percent of 10
1474		-	the total financial assistance amount requested; and 11
1475		-
1476		-	(iii) a plan for the project that is consistent with the county’s local 12
1477		-	strategic economic development plan as to the location and type of project. 13
1478		-
1479		-	5–321. 14
1480		-
1481		-	(a) [(1) After consulting with the Department and the Maryland Department 15
1482		-	of Labor, each year the Maryland Economic Development Commission shall: 16
1483		-
1484		-	(i) evaluate the potential employment and economic growth of 17
1485		-	Maryland’s industry sectors; and 18
1486		-
1487		-	(ii) recommend eligible industry sectors to the Authority. 19
1488		-
1489		-	(2) (1) Each year the Authority DEPARTMENT shall: 20
1490		-
1491		-	(i) consider the recommendation of the Maryland Economic 21
1492		-	Development Commission; and 22
1493		-
1494		-	(ii) establish a list of industry sectors that will be eligible for 23
1495		-	financial assistance from the Fund. 24
1496		-
1497		-	(3) (2) In determining whether an applicant is engaged in an eligible 25
1498		-	industry sector, the Department shall consider the definitions set forth in the North 26
1499		-	American Industry Classification System.] EXCEPT AS PROVIDED IN SUBSECTION (B) 27
1500		-	OF THIS SECTION, IN ORDER TO BE CONSI DERED ELIGIBLE FOR F INANCIAL 28
1501		-	ASSISTANCE FROM THE FUND, A PROJECT SHALL BE E NGAGED IN AN ELIGIBL E 29
1502		-	INDUSTRY SECTOR AS ESTABLISHE D THROUGH § 2.5–106 OF THIS ARTICLE. 30
1503		-	32 SENATE BILL 427
1504		-
1505		-
1506		-	(b) (1) For the purpose of providing financial assistance under this subtitle, 1
1507		-	the following are ALSO deemed to be in eligible industry sectors: 2
1508		-
1509		-	(i) aquaculture projects; 3
1510		-
1511		-	(ii) arts and entertainment enterprises; 4
1512		-
1513		-	(iii) arts and entertainment projects; 5
1514		-
1515		-	(iv) redevelopment of qualified brownfields sites; 6
1516		-
1517		-	(v) creation or expansion of child care facilities; 7
1518		-
1519		-	(vi) projects in areas that are declared to be federal disaster areas 8
1520		-	within 1 year before the Department receives an application for financial assistance under 9
1521		-	this subtitle; and 10
1522		-
1523		-	(vii) feasibility studies. 11
1524		-
1525		-	(2) The requirements specifically imposed on significant strategic economic 12
1526		-	development opportunities and local economic development opportunities under this 13
1527		-	subtitle do not apply to the items listed in paragraph (1) of this subsection. 14
1528		-
1529		-	5–322. 15
1530		-
1531		-	(a) Financial assistance from the Fund may be used only to finance costs incurred 16
1532		-	for: 17
1533		-
1534		-	(1) construction or acquisition of a building or real property, and associated 18
1535		-	development and carrying costs; 19
1536		-
1537		-	(2) construction, acquisition, or installation of equipment, furnishings, 20
1538		-	fixtures, leasehold improvements, site improvements, or infrastructure improvements, 21
1539		-	including rail line enhancements on or to the site of an economic development project, and 22
1540		-	associated development and carrying costs; 23
1541		-
1542		-	(3) working capital for significant strategic economic development 24
1543		-	opportunities, arts and entertainment enterprises, or arts and entertainment projects; 25
1544		-
1545		-	(4) redevelopment of qualified brownfields sites; 26
1546		-
1547		-	(5) subject to § 5–325(b)(3) of this subtitle, construction, purchase, or 27
1548		-	renovation of real property, fixtures, or equipment related to a child care facility; 28
1549		-
1550		-	(6) if supported by a resolution adopted by the governing body of the 29
1551		-	jurisdiction in which a project may be located, feasibility studies; 30
1552		-	SENATE BILL 427 33
1553		-
1554		-
1555		-	(7) subject to § 5–325(b)(4) of this subtitle, preparation of a county’s or 1
1556		-	municipal corporation’s strategy or plan for economic development; and 2
1557		-
1558		-	(8) a project intended to assist businesses in areas that are declared to be 3
1559		-	federal disaster areas, but only if the Department receives an application for financial 4
1560		-	assistance within 1 year after the declaration of the federal disaster area. 5
1561		-
1562		-	(b) Financial assistance from the Fund may not be used to refinance existing debt. 6
1563		-
1564		-	5–323. 7
1565		-
1566		-	Financial assistance from the Fund may not exceed the lesser of: 8
1567		-
1568		-	(1) $10,000,000; or 9
1569		-
1570		-	(2) 20% of the Fund balance. 10
1571		-
1572		-	5–324. 11
1573		-
1574		-	(a) Each subsection of this section is subject to § 5–323 of this subtitle. 12
1575		-
1576		-	(b) If the Department [or Authority] determines a project to be a significant 13
1577		-	strategic economic development opportunity, the Department [or Authority] may provide 14
1578		-	a loan from the Fund for the project to an individual, private business, nonprofit entity, or 15
1579		-	the Corporation in an amount not exceeding $10,000,000. 16
1580		-
1581		-	(c) If the Department [or Authority] determines a project to be a local economic 17
1582		-	development opportunity, the Department [or Authority] may provide financial assistance 18
1583		-	from the Fund for the project to an individual, private business, nonprofit entity, or the 19
1584		-	Corporation in an amount not exceeding: 20
1585		-
1586		-	(1) [$5,000,000] $7,500,000 for a loan or investment; and 21
1587		-
1588		-	(2) [$2,000,000] $5,000,000 for a grant. 22
1589		-
1590		-	(d) (1) Financial assistance provided to a local government or the Corporation 23
1591		-	to finance a project may be: 24
1592		-
1593		-	(i) in the form of a grant, loan, or investment; and 25
1594		-
1595		-	(ii) except as provided in paragraph (2) of this subsection, in an 26
1596		-	amount not exceeding [$3,000,000] $5,000,000. 27
1597		-
1598		-	(2) Financial assistance for a Tier I county project may be in an amount 28
1599		-	determined by the Department. 29
1600		-	34 SENATE BILL 427
1601		-
1602		-
1603		-	(3) A grant to a local economic development fund is subject to the 1
1604		-	requirements of Part V of this subtitle. 2
1605		-
1606		-	(e) Financial assistance for a specialized economic development opportunity may 3
1607		-	be: 4
1608		-
1609		-	(1) provided to an individual, private business, nonprofit entity, or local 5
1610		-	government, or the Corporation; 6
1611		-
1612		-	(2) in the form of a grant, loan, or investment; and 7
1613		-
1614		-	(3) in an amount determined by the Department [or Authority]. 8
1615		-
1616		-	5–325. 9
1617		-
1618		-	(a) Subject to the restrictions of this subtitle, the Department [or Authority] may 10
1619		-	impose the terms and conditions on financial assistance from the Fund as either considers 11
1620		-	appropriate. 12
1621		-
1622		-	(b) (1) Except as provided in paragraph (2), (3), or (4) of this subsection, 13
1623		-	financial assistance from the Fund may not exceed 70% of the total costs of the project being 14
1624		-	financed. 15
1625		-
1626		-	(2) Financial assistance from the Fund may constitute 100% of the total 16
1627		-	costs of the project being financed if: 17
1628		-
1629		-	(i) the recipient is the Corporation; or 18
1630		-
1631		-	(ii) the financial assistance is for: 19
1632		-
1633		-	1. an arts and entertainment enterprise; 20
1634		-
1635		-	2. an arts and entertainment project; or 21
1636		-
1637		-	3. a Tier I county project. 22
1638		-
1639		-	(3) (i) Except as provided in subparagraph (ii) of this paragraph, 23
1640		-	financial assistance from the Fund: 24
1641		-
1642		-	1. may be used to finance up to 50% of the costs of 25
1643		-	construction, purchase, or renovation of real property, fixtures, or equipment related to a 26
1644		-	child care facility; but 27
1645		-
1646		-	2. may not be used for working capital, supplies, or inventory 28
1647		-	related to a child care facility. 29
1648		-	SENATE BILL 427 35
1649		-
1650		-
1651		-	(ii) Financial assistance from the Fund may be used to finance up to 1
1652		-	20% of the costs described in subparagraph (i) of this paragraph incurred by a business that 2
1653		-	has received or will receive a day care loan insured by the Maryland Industrial 3
1654		-	Development Financing Authority. 4
1655		-
1656		-	(4) Financial assistance for preparation of a strategy or plan for economic 5
1657		-	development of a county or municipal corporation may not exceed: 6
1658		-
1659		-	(i) 50% of the costs of preparation; or 7
1660		-
1661		-	(ii) $50,000 in a 3–year period. 8
1662		-
1663		-	(c) [(1) A loan from the Fund shall bear an interest rate below the market rate 9
1664		-	of interest, as determined by the Department, if the loan is for: 10
1665		-
1666		-	(i) a significant strategic economic development opportunity; or 11
1667		-
1668		-	(ii) a specialized economic development opportunity. 12
1669		-
1670		-	(2) A loan from the Fund for a Tier I county project shall bear an interest 13
1671		-	rate determined by the Department or the Authority. 14
1672		-
1673		-	(3) A loan from the Fund shall bear an interest rate not exceeding 15
1674		-	one–eighth of 1% plus the net interest cost of the most recent State general obligation bond 16
1675		-	issue preceding the approval of the loan if the loan is: 17
1676		-
1677		-	(i) for a local economic development opportunity; or 18
1678		-
1679		-	(ii) to a local government. 19
1680		-
1681		-	(4) A loan from the Fund may not bear an interest rate of less than 3% 20
1682		-	unless: 21
1683		-
1684		-	(i) the project funded by the loan is located in an area of high 22
1685		-	unemployment; or 23
1686		-
1687		-	(ii) the Department determines that the borrower is carrying out a 24
1688		-	compelling economic development initiative. 25
1689		-
1690		-	(d) (1) The Department may waive interest during the first 2 years of the term 26
1691		-	of a loan from the Fund. 27
1692		-
1693		-	(2) If a borrower defaults on a loan from the Fund, the Department may 28
1694		-	impose an interest rate that exceeds the limits set forth in subsection (c)(1) or (3) of this 29
1695		-	section. 30
1696		-
1697		-	(e) The term of a loan from the Fund may not exceed: 31 36 SENATE BILL 427
1698		-
1699		-
1700		-
1701		-	(1) for working capital, 3 years; 1
1702		-
1703		-	(2) for financing equipment, furnishings, or fixtures, the lesser of 15 years 2
1704		-	or the useful life of the asset, as determined by the Department; 3
1705		-
1706		-	(3) for financing the construction or acquisition of buildings and real 4
1707		-	property, 25 years; and 5
1708		-
1709		-	(4) for financing the redevelopment of a qualified brownfields site or a Tier 6
1710		-	I county project, a term approved by the Department or Authority] THE DEPARTMENT 7
1711		-	SHALL DETERMINE WHET HER A LOAN FROM THE FUND SHALL BEAR INTER EST AND, 8
1712		-	IF SO, THE INTEREST RATE . 9
1713		-
1714		-	5–329. 10
1715		-
1716		-	(a) A local government may apply to the Department for a grant from the Fund 11
1717		-	to a local economic development fund. 12
1718		-
1719		-	(b) In determining whether to approve a grant to a local economic development 13
1720		-	fund, the Department [or Authority] shall consider and determine: 14
1721		-
1722		-	(1) the average rate of unemployment for the local jurisdiction in 15
1723		-	comparison to the average rate of unemployment for the State; 16
1724		-
1725		-	(2) whether the local government currently administers a local economic 17
1726		-	development fund; 18
1727		-
1728		-	(3) the ability of the local government to leverage private money; 19
1729		-
1730		-	(4) the level of financial commitment provided by the local government; 20
1731		-	and 21
1732		-
1733		-	(5) any other factors that the Department [or Authority] considers 22
1734		-	relevant. 23
1735		-
1736		-	5–338. 24
1737		-
1738		-	(d) (1) The Department shall notify the person whether the person qualifies 25
1739		-	for financial assistance for the redevelopment of a brownfields site within 30 days after the 26
1740		-	Department receives a request under subsection (c) of this section if: 27
1741		-
1742		-	(i) the Department of the Environment approves the participation 28
1743		-	in the Voluntary Cleanup Plan or a corrective action plan; and 29
1744		-
1745		-	(ii) the Department [or Authority] approves the financial assistance. 30 SENATE BILL 427 37
1746		-
1747		-
1748		-
1749		-	(2) The notice shall specify which of the criteria in subsection (b) of this 1
1750		-	section that the person meets. 2
1751		-
1752		-	5–401. 3
1753		-
1754		-	(a) In this subtitle the following words have the meanings indicated. 4
1755		-
1756		-	(b) “Authority” means the Maryland Industrial Development Financing 5
1757		-	Authority. 6
1758		-
1759		-	(p) “Fund” means the Industrial Development Fund established under § 5–423 of 7
1760		-	this subtitle. 8
1761		-
1762		-	5–464. 9
1763		-
1764		-	THE AUTHORITY AND THE SECRETARY MAY NOT APP ROVE FINANCIAL 10
1765		-	ASSISTANCE FROM THE FUND OR THE ISSUANCE OF BONDS UNDER THIS SUBTITLE 11
1766		-	AFTER JUNE 30, 2025. 12
1767		-
1768		-	Subtitle 5. Maryland [Small Business Development Financing Authority] ECONOMIC 13
1769		-	INCLUSION FUND. 14
1770		-
1771		-	5–501. 15
1772		-
1773		-	(a) In this subtitle the following words have the meanings indicated. 16
1774		-
1775		-	(b) [“Authority” means the Maryland Small Business Development Financing 17
1776		-	Authority. 18
1777		-
1778		-	(c)] “Financial institution” means: 19
1779		-
1780		-	(1) a financial institution, as defined in § 1–101 of the Financial 20
1781		-	Institutions Article; and 21
1782		-
1783		-	(2) any other lender that the Authority DEPARTMENT approves. 22
1784		-
1785		-	(C) “FUND” MEANS THE MARYLAND ECONOMIC INCLUSION FUND. 23
1786		-
1787		-	(d) (1) “Loan document” means an instrument or agreement that evidences, 24
1788		-	secures, or guarantees a loan. 25
1789		-
1790		-	(2) “Loan document” includes a note, financing statement, mortgage, 26
1791		-	pledge, assignment, loan and security agreement, or guaranty. 27
1792		-	38 SENATE BILL 427
1793		-
1794		-
1795		-	(e) (1) “Working capital” means money used to meet the cash needs of an 1
1796		-	operating business entity. 2
1797		-
1798		-	(2) “Working capital” does not include money used for a capital purchase. 3
1799		-
1800		-	5–502. 4
	1889	+	(1) PREMIUMS FOR GUARANT EEING LOANS UNDER TH IS SUBTITLE; 27
	1890	+
	1891	+	(2) PREMIUMS FOR GUARANT EEING EQUITY INVESTM ENTS UNDER 28
	1892	+	THIS SUBTITLE; 29 40 SENATE BILL 427
	1893	+
	1894	+
	1895	+
	1896	+	(3) REPAYMENTS OF PRINCI PAL OF AND INTEREST ON DIRECT LOANS 1
	1897	+	AND EQUITY PARTICIPA TION FINANCING MADE UNDER THIS SUBTITLE ; 2
	1898	+
	1899	+	(4) PROCEEDS FROM THE SA LE, DISPOSITION, LEASE, OR RENTAL OF 3
	1900	+	COLLATERAL FOR DIREC T LOANS, LOAN GUARANTIES , OR EQUITY PARTICIPAT ION 4
	1901	+	FINANCING MADE UNDER THIS SUBTITLE; 5
	1902	+
	1903	+	(5) LOANS AND GRANTS FRO M THE FEDERAL GOVERN MENT OR A UNIT 6
	1904	+	OR INSTRUMENTALITY O F THE FEDERAL GOVERN MENT; 7
	1905	+
	1906	+	(6) GRANTS AND CONTRIBUT IONS OF FUNDS FROM T HE STATE, A 8
	1907	+	POLITICAL SUBDIVISIO N, OR ANY OTHER SOURCE ; 9
	1908	+
	1909	+	(7) PREMIUMS FOR GUARANT EEING LONG TERM LOAN S UNDER § 10
	1910	+	5–523 OF THIS SUBTITLE ; 11
	1911	+
	1912	+	(8) NOTWITHSTANDING § 10–469(E) AND (F) OF THIS ARTICLE OR A NY 12
	1913	+	OTHER LAW , ANY RECOVERY OF INVE STMENTS MADE UNDER § 10–469 OF THIS 13
	1914	+	ARTICLE THAT WERE FU NDED BY A TRANSFER O F MONEY FROM THE FUN DS UNDER 14
	1915	+	THIS SUBTITLE TO THE ENTERPRISE FUND, INCLUDING AN INVESTM ENT IN MMG 15
	1916	+	VENTURES LLP; 16
	1917	+
	1918	+	(9) NOTWITHSTANDING § 10–469(E) AND (F) OF THIS ARTICLE OR A NY 17
	1919	+	OTHER LAW, ANY REPAYMENT OF A G RANT MADE UNDER § 10–469 OF THIS ARTICLE 18
	1920	+	THAT WAS FUNDED BY A TRANSFER OF MONEY FR OM THE FUNDS UN DER THIS 19
	1921	+	SUBTITLE TO THE ENTERPRISE FUND; 20
	1922	+
	1923	+	(10) MONEY THAT THE STATE APPROPRIATES TO THE FUND; 21
	1924	+
	1925	+	(11) MONEY MADE AVAILABLE TO THE FUND THROUGH FEDERAL 22
	1926	+	PROGRAMS OR PRIVATE CONTRIBUTIONS ; 23
	1927	+
	1928	+	(12) PREMIUMS, FEES, ROYALTIES, AND REPAYMENTS OF 24
	1929	+	INVESTMENTS MADE UNDER THE TERMS OF BONDING ASSISTANC E AND EQUITY 25
	1930	+	PARTICIPATION FINANC ING; 26
	1931	+
	1932	+	(13) REPAYMENT OF FINANCI AL ASSISTANCE PROVID ED FROM THE 27
	1933	+	MARYLAND ECONOMIC ADJUSTMENT FUND ESTABLISHED UNDE R § 5–203 OF THIS 28
	1934	+	ARTICLE; AND 29
	1935	+
	1936	+	(14) ALL OTHER RECEIPTS O F THE DEPARTMENT UNDER THIS 30
	1937	+	SUBTITLE. 31 SENATE BILL 427 41
	1938	+
	1939	+
	1940	+
	1941	+	[5–507. 1
	1942	+
	1943	+	(a) The Authority shall elect a chair, vice chair, and treasurer from among its 2
	1944	+	members. 3
	1945	+
	1946	+	(b) The Authority shall determine the manner of election of officers and their 4
	1947	+	terms.] 5
	1948	+
	1949	+	5–507. 6
	1950	+
	1951	+	AT LEAST HALF OF THE ANNUAL APPROPRIATION TO THE FUND MUST BE 7
	1952	+	RESERVED FOR BUSINES S ACTIVITIES INCLUDE D ON THE LIST OF IND USTRIES AND 8
	1953	+	ACTIVITIES DEVELOPED BY THE DEPARTMENT IN ACCORDA NCE WITH § 2.5–106 OF 9
	1954	+	THIS ARTICLE. 10
	1955	+
	1956	+	[5–508. 11
	1957	+
	1958	+	(a) (1) Four members of the Authority are a quorum. 12
	1959	+
	1960	+	(2) The Authority may not act on any matter unless at least four members 13
	1961	+	in attendance concur. 14
	1962	+
	1963	+	(b) The Authority shall determine the times and places of its meetings. 15
	1964	+
	1965	+	(c) A member of the Authority is entitled to reimbursement for expenses under 16
	1966	+	the Standard State Travel Regulations, as provided in the State budget. 17
	1967	+
	1968	+	(d) The Authority may employ a staff in accordance with the State budget.] 18
	1969	+
	1970	+	5–508. 19
	1971	+
	1972	+	IN ORDER TO ADMINISTE R THE FUND, THE DEPARTMENT MAY : 20
	1973	+
	1974	+	(1) CONTRACT FOR AND ENGAGE THE S ERVICES OF A PRIVATE 21
	1975	+	MARYLAND CORPORATION TO ADMINISTER SOME O R ALL OF THE PROGRAM S OF THE 22
	1976	+	FUND; 23
	1977	+
	1978	+	(2) CONTRACT FOR AND ACC EPT, TO CARRY OUT THIS SU BTITLE, A 24
	1979	+	LOAN OR GRANT FROM T HE FEDERAL GOVERNMEN T, A POLITICAL SUBDIVIS ION OF 25
	1980	+	THE STATE, OR ANY OTHER SOURCE ; 26
	1981	+
	1982	+	(3) PURCHASE, RECEIVE, LEASE AS LESSEE, OR OTHERWISE ACQUIRE , 27
	1983	+	SELL, MORTGAGE , LEASE AS LESSOR , PLEDGE, ADMINISTER, DISPOSE OF, OR 28
	1984	+	OTHERWISE DEAL WITH PROPERTY GIVEN AS CO LLATERAL UNDER A LOA N 29 42 SENATE BILL 427
	1985	+
	1986	+
	1987	+	AGREEMENT ON THE TER MS AND CONDITIONS IT CONSIDERS ADVISABLE ; 1
	1988	+
	1989	+	(4) ADOPT REGULATIONS NE CESSARY TO CARRY OUT ITS POWERS; 2
	1990	+
	1991	+	(5) ACQUIRE OR TAKE ASSI GNMENTS OF LOAN DOCU MENTS; AND 3
	1992	+
	1993	+	(6) DO ANYTHING NECESSAR Y OR CONVENIENT TO C ARRY OUT ITS 4
	1994	+	POWERS. 5
	1995	+
	1996	+	[5–509. 6
	1997	+
	1998	+	(a) (1) The Executive Director is the chief administrative officer of the 7
	1999	+	Authority. 8
	2000	+
	2001	+	(2) With the approval of the Secretary, the Authority may: 9
	2002	+
	2003	+	(i) appoint the Executive Director; or 10
	2004	+
	2005	+	(ii) contract with a private entity to perform the duties of the 11
	2006	+	Executive Director. 12
	2007	+
	2008	+	(b) The Executive Director serves at the pleasure of the Authority, with the 13
	2009	+	concurrence of the Secretary. 14
	2010	+
	2011	+	(c) In addition to any other duties set forth in this subtitle, the Executive Director 15
	2012	+	shall: 16
	2013	+
	2014	+	(1) supervise the administrative affairs and technical activities of the 17
	2015	+	Authority in accordance with its regulations and policies; 18
	2016	+
	2017	+	(2) attend all meetings of the Authority; 19
	2018	+
	2019	+	(3) keep minutes of all proceedings of the Authority; 20
	2020	+
	2021	+	(4) approve all accounts for salaries, per diem payments, and allowable 21
	2022	+	expenses of the Authority, its employees, and its consultants; 22
	2023	+
	2024	+	(5) approve all expenses incidental to the operation of the Authority; and 23
	2025	+
	2026	+	(6) perform any other duty that the Authority or the Secretary requires to 24
	2027	+	carry out this subtitle.] 25
	2028	+
	2029	+	[5–510. 26
	2030	+
	2031	+	A member of the Authority may not participate in any decision related to the 27
	2032	+	approval of financial assistance if the member has any interest in: 28 SENATE BILL 427 43
	2033	+
	2034	+
	2035	+
	2036	+	(1) the applicant for the assistance; or 1
	2037	+
	2038	+	(2) the financial institution seeking a guaranty or an interest subsidy or 2
	2039	+	both.] 3
	2040	+
	2041	+	[5–511. 4
	2042	+
	2043	+	(a) In this section, “Authority staff” means any of the individuals who are 5
	2044	+	employed by the Department to operate the programs of the Authority immediately prior 6
	2045	+	to the execution by the Department of a contract under this section with the private 7
	2046	+	corporation organized by any of those individuals. 8
	2047	+
	2048	+	(b) (1) The Department may contract for and engage the services of some or 9
	2049	+	all of the Authority staff to administer the programs of the Authority, for a period of 3 years, 10
	2050	+	if the Authority staff has organized itself as a private Maryland corporation. 11
	2051	+
	2052	+	(2) The Department may: 12
	2053	+
	2054	+	(i) extend the termination date of the contract in effect as of 13
	2055	+	September 30, 2008, to June 30, 2012, and modify that extended contract as needed; and 14
	2056	+
	2057	+	(ii) renew the extended contract for up to two additional 5–year 15
	2058	+	terms, and modify that renewed and extended contract as needed. 16
	2059	+
	2060	+	(3) An extension or renewal contract shall include standards to evaluate 17
	2061	+	the performance of the private contractor in rendering services under the contract. 18
	2062	+
	2063	+	(c) In its name the corporation may use “Maryland Small Business Development 19
	2064	+	Financing Agency”, “MSBDFA, Inc.”, or any close approximation of those terms.] 20
	2065	+
	2066	+	[5–512. 21
	2067	+
	2068	+	(a) The Authority exercises its powers and performs its duties subject to the 22
	2069	+	authority of the Secretary. 23
	2070	+
	2071	+	(b) The Authority may: 24
	2072	+
	2073	+	(1) adopt bylaws for the conduct of its business; 25
	2074	+
	2075	+	(2) adopt a seal; 26
	2076	+
	2077	+	(3) maintain offices in the State; 27
	2078	+
	2079	+	(4) sue and be sued in its own name; 28
	2080	+
	2081	+	(5) retain consultants; 29 44 SENATE BILL 427
	2082	+
	2083	+
	2084	+
	2085	+	(6) use the services of governmental units; 1
	2086	+
	2087	+	(7) contract for and accept, to carry out this subtitle, a loan or grant from 2
	2088	+	the federal government, a political subdivision of the State, or any other source; 3
	2089	+
	2090	+	(8) purchase, receive, lease as lessee, or otherwise acquire, sell, mortgage, 4
	2091	+	lease as lessor, pledge, administer, dispose of, or otherwise deal with property given as 5
	2092	+	collateral under a loan agreement on the terms and conditions it considers advisable; 6
	2093	+
	2094	+	(9) adopt regulations necessary to carry out its powers; 7
	2095	+
	2096	+	(10) acquire or take assignments of loan documents; and 8
	2097	+
	2098	+	(11) do anything necessary or convenient to carry out its powers. 9
	2099	+
	2100	+	(c) The Authority shall: 10
	2101	+
	2102	+	(1) in its internal functions, follow the procedures of the State that govern 11
	2103	+	the purchase of office space, supplies, facilities, materials, equipment, and professional 12
	2104	+	services; 13
	2105	+
	2106	+	(2) keep proper records of its accounts; 14
	2107	+
	2108	+	(3) keep separate records for: 15
	2109	+
	2110	+	(i) the Small Business Development Contract Financing Fund 16
	2111	+	under Part III of this subtitle; 17
	2112	+
	2113	+	(ii) the Small Business Development Guaranty Fund under Part IV 18
	2114	+	of this subtitle; 19
	2115	+
	2116	+	(iii) the Equity Participation Investment Program Fund under Part 20
	2117	+	V of this subtitle; and 21
	2118	+
	2119	+	(iv) the Small Business Surety Bond Fund under Part VI of this 22
	2120	+	subtitle; and 23
	2121	+
	2122	+	(4) in accordance with § 2.5–109 of this article, submit a report on its 24
	2123	+	condition and operations.] 25
	2124	+
	2125	+	[5–513. 26
	2126	+
	2127	+	(a) In any action, service of process on the Authority shall be made by service on 27
	2128	+	the Executive Director of the Authority. 28
	2129	+
	2130	+	(b) Service may be made in person or by leaving a copy of the process at the office 29 SENATE BILL 427 45
	2131	+
	2132	+
	2133	+	of the Executive Director with the individual in charge of the office.] 1
	2134	+
	2135	+	[5–514. 2
	2136	+
	2137	+	(a) Notwithstanding § 10–469(e) and (f) of this article or any other law, the 3
	2138	+	following money shall be payable into the funds under this subtitle: 4
	2139	+
	2140	+	(1) any recovery of investments made under § 10–469 of this article that 5
	2141	+	were funded by a transfer of money from the funds under this subtitle to the Enterprise 6
	2142	+	Fund, including an investment in MMG Ventures LLP; and 7
	2143	+
	2144	+	(2) any repayment of a grant made under § 10–469 of this article that was 8
	2145	+	funded by a transfer of money from the funds under this subtitle to the Enterprise Fund. 9
	2146	+
	2147	+	(b) The Authority shall determine the proportion of the recovery or repayment 10
	2148	+	payable under subsection (a) of this section that shall be deposited into each of the funds 11
	2149	+	under this subtitle.] 12
	2150	+
	2151	+	5–509. RESERVED. 13
	2152	+
	2153	+	5–510. RESERVED. 14
	2154	+
	2155	+	Part III. Small Business Development Contract Financing [Fund] PROGRAM. 15
	2156	+
	2157	+	[5–517.] 5–511. 16
	2158	+
	2159	+	In this part, [“Fund”] “PROGRAM” means the Small Business Development 17
	2160	+	Contract Financing [Fund] PROGRAM. 18
	2161	+
	2162	+	[5–518.] 5–512. 19
	2163	+
	2164	+	There is a Small Business Development Contract Financing [Fund] PROGRAM 20
	2165	+	WITHIN THE FUND. 21
	2166	+
	2167	+	[5–519. 22
	2168	+
	2169	+	The Authority shall use the Fund to implement this part.] 23
	2170	+
	2171	+	[5–520. 24
	2172	+
	2173	+	The Authority shall administer the Fund.] 25
	2174	+
	2175	+	[5–521. 26
	2176	+
	2177	+	(a) The Fund is a special, nonlapsing fund that is not subject to reversion under 27 46 SENATE BILL 427
	2178	+
	2179	+
	2180	+	§ 7–302 of the State Finance and Procurement Article. 1
	2181	+
	2182	+	(b) The Treasurer shall: 2
	2183	+
	2184	+	(1) invest the money in the Fund in the same manner as other State money 3
	2185	+	may be invested; and 4
	2186	+
	2187	+	(2) credit any investment earnings to the Fund. 5
	2188	+
	2189	+	(c) If the Authority determines by resolution that any money in the Fund is no 6
	2190	+	longer needed to meet its obligations, the Authority may authorize the Comptroller to first 7
	2191	+	employ that money to pay the principal of and interest on outstanding bonds issued under 8
	2192	+	any Act authorizing the issue of State general obligation bonds issued to implement this 9
	2193	+	subtitle.] 10
	2194	+
	2195	+	[5–522. 11
	2196	+
	2197	+	The Fund consists of: 12
	2198	+
	2199	+	(1) premiums for guaranteeing loans under § 5–525(a) of this subtitle; 13
	2200	+
	2201	+	(2) premiums for guaranteeing equity investments under § 5–525(b) of this 14
	2202	+	subtitle; 15
	2203	+
	2204	+	(3) repayments of principal of and interest on direct loans made under § 16
	2205	+	5–525(c) of this subtitle; 17
	2206	+
	2207	+	(4) proceeds from the sale, disposition, lease, or rental of collateral for 18
	2208	+	direct loans or loan guaranties made under § 5–525 of this subtitle; and 19
	2209	+
	2210	+	(5) all other receipts of the Authority under this part.] 20
	2211	+
	2212	+	[5–523. 21
	2213	+
	2214	+	(a) If the Authority and the Secretary determine that more money is needed to 22
	2215	+	keep the Fund at an adequate level, the Authority shall send a written request for the 23
	2216	+	additional money to the Board of Public Works. 24
	2217	+
	2218	+	(b) The Board of Public Works may pay the amount requested from the General 25
	2219	+	Emergency Fund.] 26
	2220	+
	2221	+	[5–524.] 5–513. 27
	2222	+
	2223	+	The [Authority] DEPARTMENT may use the Fund for: 28
	2224	+
	2225	+	(1) loan guaranties made under [§ 5–525(a)] § 5–514(A) of this subtitle; 29 SENATE BILL 427 47
	2226	+
	2227	+
	2228	+
	2229	+	(2) equity investment guaranties made under [§ 5–525(b)] § 5–514(B) of 1
	2230	+	this subtitle; 2
	2231	+
	2232	+	(3) direct loans made under [§ 5–525(c)] § 5–514(C) of this subtitle; and 3
	2233	+
	2234	+	(4) expenses for administrative, legal, actuarial, and other services. 4
	2235	+
	2236	+	[5–525.] 5–514. 5
	2237	+
	2238	+	(a) (1) The [Authority] DEPARTMENT may use the Fund to guarantee a loan 6
	2239	+	made to an applicant only if: 7
	2240	+
	2241	+	(i) the applicant meets the requirements of this part; 8
	2242	+
	2243	+	(ii) [the loan is to be used to perform a contract for which the 9
	2244	+	majority of the funding is provided by the federal government, a state government, a local 10
	2245	+	government, or a utility regulated by the Public Service Commission; 11
	2246	+
	2247	+	(iii)] the maximum amount payable by the [Authority] 12
	2248	+	DEPARTMENT under the guaranty does not exceed [$2,000,000] $3,000,000; and 13
	2249	+
	2250	+	[(iv)] (III) the guaranteed loan is to be used for: 14
	2251	+
	2252	+	1. working capital; or 15
	2253	+
	2254	+	2. equipment needed to perform the contract, the cost of 16
	2255	+	which can be repaid from contract proceeds, if the [Authority] DEPARTMENT has entered 17
	2256	+	into an agreement with the applicant to secure the loan or guaranty. 18
	2257	+
	2258	+	(2) A guaranty made by the [Authority] DEPARTMENT may not exceed the 19
	2259	+	term of the contract, unless the [Authority] DEPARTMENT determines that a longer term 20
	2260	+	better serves the purposes of this subtitle. 21
	2261	+
	2262	+	(b) (1) The [Authority] DEPARTMENT may use the Fund to guarantee a 22
	2263	+	person’s proposed equity investment in the applicant only if: 23
	2264	+
	2265	+	(i) the applicant meets the requirements of this part; 24
	2266	+
	2267	+	(ii) the amount of the equity investment to be guaranteed does not 25
	2268	+	exceed the lesser of: 26
	2269	+
	2270	+	1. 10% of the person’s equity investment in the applicant; or 27
	2271	+
	2272	+	2. $250,000; AND 28
	2273	+	48 SENATE BILL 427
	2274	+
	2275	+
	2276	+	(iii) [the equity investment to be guaranteed is to be used to perform 1
	2277	+	a contract for which the majority of funding is provided by the federal government, a state 2
	2278	+	government, a local government, or a utility regulated by the Public Service Commission; 3
	2279	+	and 4
	2280	+
	2281	+	(iv)] the equity investment to be guaranteed is to be used for: 5
	2282	+
	2283	+	1. working capital; or 6
	2284	+
	2285	+	2. equipment needed to perform the contract, the cost of 7
	2286	+	which can be repaid from contract proceeds, if the [Authority] DEPARTMENT has entered 8
	2287	+	into an agreement with the applicant to secure the guaranty. 9
	2288	+
	2289	+	(2) The [Authority] DEPARTMENT may not guarantee the equity 10
	2290	+	investment of a person who: 11
	2291	+
	2292	+	(i) previously held an equity investment in the applicant; 12
	2293	+
	2294	+	(ii) previously participated in the management of the applicant; or 13
	2295	+
	2296	+	(iii) in any other manner is related to: 14
	2297	+
	2298	+	1. the applicant; or 15
	2299	+
	2300	+	2. any of the current stockholders, officers, or management 16
	2301	+	personnel of the applicant. 17
	2302	+
	2303	+	(c) (1) The [Authority] DEPARTMENT may use the Fund to lend money to an 18
	2304	+	applicant only if: 19
	2305	+
	2306	+	(i) the applicant meets the requirements of this part; 20
	2307	+
	2308	+	(ii) the applicant is unable to obtain money on reasonable terms 21
	2309	+	through normal lending channels from another source; 22
	2310	+
	2311	+	(iii) the loan does not exceed [$2,000,000] $3,000,000; AND 23
	2312	+
	2313	+	(iv) [the loan is to be used to perform a contract for which the 24
	2314	+	majority of funding is provided by the federal government, a state government, a local 25
	2315	+	government, or a utility regulated by the Public Service Commission; and 26
	2316	+
	2317	+	(v)] the loan is to be used for: 27
	2318	+
	2319	+	1. working capital; or 28
	2320	+
	2321	+	2. equipment needed to perform the contract, if the contract 29 SENATE BILL 427 49
	2322	+
	2323	+
	2324	+	proceeds can repay the cost of the equipment and if the [Authority] DEPARTMENT has 1
	2325	+	entered into an agreement with the applicant to secure the loan. 2
	2326	+
	2327	+	(2) A loan that the [Authority] DEPARTMENT makes shall mature not 3
	2328	+	later than the term of the contract, unless the [Authority] DEPARTMENT finds that a 4
	2329	+	longer term better serves the purposes of this part. 5
	2330	+
	2331	+	(d) In providing financial assistance under this section, the [Authority] 6
	2332	+	DEPARTMENT shall recognize the need to serve applicants from all political subdivisions 7
	2333	+	in the State. 8
	2334	+
	2335	+	[5–526.] 5–515. 9
	2336	+
	2337	+	(a) If the applicant is an individual, to qualify for financial assistance under this 10
	2338	+	part the applicant shall satisfy the [Authority] DEPARTMENT that: 11
	2339	+
	2340	+	(1) the applicant is of good moral character; 12
	2341	+
	2342	+	(2) the applicant has a reputation for financial responsibility, as 13
	2343	+	determined from creditors, employers, and other individuals who have personal knowledge 14
	2344	+	of the applicant; 15
	2345	+
	2346	+	(3) the applicant is a resident of the State or the principal place of business 16
	2347	+	of the applicant is in the State; and 17
	2348	+
	2349	+	(4) the applicant is unable to obtain adequate business financing on 18
	2350	+	reasonable terms through normal lending channels because the applicant: 19
	2351	+
	2352	+	(i) belongs to a group that historically has been deprived of access 20
	2353	+	to normal economic or financial resources [because of race, color, creed, sex, religion, or 21
	2354	+	national origin]; 22
	2355	+
	2356	+	(ii) has an identifiable physical handicap that severely limits the 23
	2357	+	ability of the applicant to obtain financial assistance, but that does not limit the ability of 24
	2358	+	the applicant to perform the contract or other activity for which the applicant would be 25
	2359	+	receiving financial assistance; 26
	2360	+
	2361	+	(iii) has any other social or economic impediment that is beyond the 27
	2362	+	control of the applicant but that does not limit the ability of the applicant to perform the 28
	2363	+	contract or other activity for which the applicant would be receiving financial assistance, 29
	2364	+	including: 30
	2365	+
	2366	+	1. the lack of formal education or financial capacity; or 31
	2367	+
	2368	+	2. geographical or regional economic distress; or 32
	2369	+	50 SENATE BILL 427
	2370	+
	2371	+
	2372	+	(iv) does not meet the established credit criteria of at least one 1
	2373	+	financial institution. 2
	2374	+
	2375	+	(b) If the applicant is a business enterprise that is not a sole proprietorship, to 3
	2376	+	qualify for financial assistance under this part at least 70% of the business enterprise shall 4
	2377	+	be owned by individuals who meet the qualifications for an individual applicant under 5
	2378	+	subsection (a) of this section. 6
	2379	+
	2380	+	(c) An applicant for a loan guaranty shall have applied for and been denied a loan 7
	2381	+	by a financial institution. 8
	2382	+
	2383	+	[5–527.] 5–516. 9
	2384	+
	2385	+	(a) To apply for financial assistance from the Fund under [§ 5–525] § 5–514 of 10
	2386	+	this subtitle, an applicant shall submit to the [Authority] DEPARTMENT an application on 11
	2387	+	the form that the [Authority] DEPARTMENT provides WITH THE INFORMATION THE 12
	2388	+	DEPARTMENT REQUIR ES. 13
	2389	+
	2390	+	[(b) The application shall: 14
	2391	+
	2392	+	(1) describe the project in detail; 15
	2393	+
	2394	+	(2) itemize known and estimated costs; 16
	2395	+
	2396	+	(3) specify the total amount of investment required to perform the contract; 17
	2397	+
	2398	+	(4) specify the amount of funds available to the applicant without financial 18
	2399	+	assistance from the Authority; 19
	2400	+
	2401	+	(5) specify the amount of financial assistance requested from the 20
	2402	+	Authority; 21
	2403	+
	2404	+	(6) provide information that demonstrates the inability of the applicant to 22
	2405	+	obtain adequate financing on reasonable terms through normal lending channels; 23
	2406	+
	2407	+	(7) provide information that demonstrates the financial status of the 24
	2408	+	applicant, including: 25
	2409	+
	2410	+	(i) a current balance sheet; 26
	2411	+
	2412	+	(ii) a profit and loss statement; and 27
	2413	+
	2414	+	(iii) credit references; and 28
	2415	+
	2416	+	(8) contain any other relevant information that the Authority requires.] 29
	2417	+	SENATE BILL 427 51
	2418	+
	2419	+
	2420	+	[(c)] (B) The [Authority] DEPARTMENT may require an applicant to provide an 1
	2421	+	audited balance sheet before the [Authority] DEPARTMENT approves or denies the 2
	2422	+	application. 3
	2423	+
	2424	+	[(d) The Authority may delegate the review and approval of the application 4
	2425	+	information required under subsection (b)(1), (2), and (3) of this section to the Executive 5
	2426	+	Director if an applicant meets all other requirements of this section.] 6
	2427	+
	2428	+	[5–528.] 5–517. 7
	2429	+
	2430	+	(a) The [Authority] DEPARTMENT may set the terms and conditions for a loan 8
	2431	+	guaranty made under [§ 5–525(a)] § 5–514(A) of this subtitle. 9
	2432	+
	2433	+	(b) (1) If the [Authority] DEPARTMENT decides to lend money from the Fund 10
	2434	+	to an applicant under [§ 5–525(c)] § 5–514(C) of this subtitle, the [Authority] 11
	2435	+	DEPARTMENT shall prepare loan documents that include: 12
	2436	+
	2437	+	(i) the interest rate on the loan that equals the market rate for a 13
	2438	+	conventional loan of comparable risk unless the [Authority] DEPARTMENT determines 14
	2439	+	that a lower rate better serves the purposes of this subtitle; 15
	2440	+
	2441	+	(ii) a disbursement schedule that provides enough money to the 16
	2442	+	applicant when the applicant needs it to perform the contract; 17
	2443	+
	2444	+	(iii) a requirement that the applicant and the [Authority] 18
	2445	+	DEPARTMENT co–sign each request for an advance of money before release of the money; 19
	2446	+	and 20
	2447	+
	2448	+	(iv) provisions for repayment of the loan. 21
	2449	+
	2450	+	(2) The loan documents may include any other provision that the 22
	2451	+	[Authority] DEPARTMENT determines is necessary to secure the loan, including an 23
	2452	+	assignment of or a lien on payment under the contract. 24
	2453	+
	2454	+	[5–529. 25
	2455	+
	2456	+	The Treasurer shall report each year to the Authority on: 26
	2457	+
	2458	+	(1) the status of the money invested under § 5–521 of this subtitle; 27
	2459	+
	2460	+	(2) the market value of the assets in the Fund as of the date of the report; 28
	2461	+	and 29
	2462	+
	2463	+	(3) the interest received from investments during the period covered by the 30
	2464	+	report.] 31
	2465	+	52 SENATE BILL 427
	2466	+
	2467	+
	2468	+	[5–530.] 5–518. 1
	2469	+
	2470	+	(a) A person may not knowingly make or cause to be made a false statement or 2
	2471	+	report in an application or document submitted to the [Authority] DEPARTMENT under 3
	2472	+	this part. 4
	2473	+
	2474	+	(b) A person may not knowingly make or cause to be made a false statement or 5
	2475	+	report to influence an action of the [Authority] DEPARTMENT under this part: 6
	2476	+
	2477	+	(1) on an application for financial assistance; or 7
	2478	+
	2479	+	(2) affecting financial assistance whether or not the assistance has already 8
	2480	+	been extended. 9
	2481	+
	2482	+	(c) A person who violates this section is guilty of a misdemeanor and on conviction 10
	2483	+	is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both. 11
	2484	+
	2485	+	5–519. RESERVED. 12
	2486	+
	2487	+	5–520. RESERVED. 13
	2488	+
	2489	+	Part IV. Small Business Development Guaranty [Fund] PROGRAM. 14
	2490	+
	2491	+	[5–533.] 5–521. 15
	2492	+
	2493	+	In this part, [“Fund”] “PROGRAM” means the Small Business Development 16
	2494	+	Guaranty [Fund] PROGRAM. 17
	2495	+
	2496	+	[5–534.] 5–522. 18
	2497	+
	2498	+	There is a Small Business Development Guaranty PROGRAM WITHIN THE Fund. 19
	2499	+
	2500	+	[5–535. 20
	2501	+
	2502	+	The Authority shall use the Fund to implement this part.] 21
	2503	+
	2504	+	[5–536. 22
	2505	+
	2506	+	The Authority shall administer the Fund.] 23
	2507	+
	2508	+	[5–537. 24
	2509	+
	2510	+	(a) The Fund is a special, nonlapsing fund that is not subject to reversion under 25
	2511	+	§ 7–302 of the State Finance and Procurement Article. 26
	2512	+
	2513	+	(b) The Treasurer shall: 27 SENATE BILL 427 53
	2514	+
	2515	+
	2516	+
	2517	+	(1) invest the money in the Fund in the same manner as other State money 1
	2518	+	may be invested; and 2
	2519	+
	2520	+	(2) credit any investment earnings to the Fund. 3
	2521	+
	2522	+	(c) If the Authority determines by resolution that any money in the Fund is no 4
	2523	+	longer needed to meet its obligations, the Authority may authorize the Comptroller to first 5
	2524	+	apply that money to pay the principal of and interest on outstanding bonds issued under 6
	2525	+	any Act authorizing the issue of State general obligation bonds issued to implement this 7
	2526	+	subtitle.] 8
	2527	+
	2528	+	[5–538. 9
	2529	+
	2530	+	The Fund consists of: 10
	2531	+
	2532	+	(1) loans and grants from the federal government or a unit or 11
	2533	+	instrumentality of the federal government; 12
	2534	+
	2535	+	(2) grants and contributions of funds from the State, a political subdivision, 13
	2536	+	or any other source; 14
	2537	+
	2538	+	(3) premiums for guaranteeing long–term loans under § 5–540 of this 15
	2539	+	subtitle; 16
	2540	+
	2541	+	(4) proceeds from the sale, disposition, lease, or rental of collateral by the 17
	2542	+	Authority relating to loans guaranteed under § 5–540 of this subtitle; and 18
	2543	+
	2544	+	(5) all other receipts of the Authority under this part.] 19
	2545	+
	2546	+	[5–539.] 5–523. 20
	2547	+
	2548	+	The [Authority] DEPARTMENT may use the Fund for: 21
	2549	+
	2550	+	(1) guaranty payments made under [§ 5–540(a)] § 5–524(A) of this 22
	2551	+	subtitle; 23
	2552	+
	2553	+	(2) interest subsidy payments under [§ 5–540(b)] § 5–524(B) of this 24
	2554	+	subtitle; and 25
	2555	+
	2556	+	(3) expenses for administrative, legal, actuarial, and other services. 26
	2557	+
	2558	+	[5–540.] 5–524. 27
	2559	+
	2560	+	(a) (1) The [Authority] DEPARTMENT may use the Fund to guarantee up to 28
	2561	+	80% of the principal of and interest on a long–term loan made by a financial institution to 29 54 SENATE BILL 427
	2562	+
	2563	+
	2564	+	an applicant only if: 1
	2565	+
	2566	+	(i) the applicant meets the requirements under [§ 5–541] § 5–525 2
	2567	+	of this subtitle and has not violated [§ 5–545] § 5–528 of this subtitle; 3
	2568	+
	2569	+	(ii) the loan amount is $5,000 or more and the maximum amount 4
	2570	+	payable by the [Authority] DEPARTMENT under the guaranty does not exceed 5
	2571	+	[$2,000,000] $3,000,000; 6
	2572	+
	2573	+	(iii) the loan is used for: 7
	2574	+
	2575	+	1. working capital; 8
	2576	+
	2577	+	2. refinancing the applicant’s existing debt; 9
	2578	+
	2579	+	3. acquisition and installation of equipment; 10
	2580	+
	2581	+	4. making necessary improvements to real property that the 11
	2582	+	applicant leases or owns in fee simple; or 12
	2583	+
	2584	+	5. acquiring real property that the applicant will own in fee 13
	2585	+	simple if the property is to be used in the applicant’s trade or business for which the 14
	2586	+	guaranty is sought and the financial institution or the [Authority] DEPARTMENT places a 15
	2587	+	lien on the property; 16
	2588	+
	2589	+	(iv) the loan matures within 10 years after the closing date of the 17
	2590	+	loan; and 18
	2591	+
	2592	+	(v) the interest rate does not exceed the monthly weighted average 19
	2593	+	of the prime lending rate prevailing in Baltimore City on unsecured commercial loans, plus 20
	2594	+	2%, as determined by the [Authority] DEPARTMENT . 21
	2595	+
	2596	+	(2) (i) The [Authority] DEPARTMENT may only approve a guaranty 22
	2597	+	under this section if the [Authority] DEPARTMENT determines that the loan to be 23
	2598	+	guaranteed will have a substantial economic impact. 24
	2599	+
	2600	+	(ii) To determine the economic impact of a loan, the [Authority] 25
	2601	+	DEPARTMENT may consider: 26
	2602	+
	2603	+	1. the amount of the guaranty obligation; 27
	2604	+
	2605	+	2. the terms of the loan to be guaranteed; 28
	2606	+
	2607	+	3. the number of new jobs that the loan will create; and 29
	2608	+
	2609	+	4. any other factor that the [Authority] DEPARTMENT 30 SENATE BILL 427 55
	2610	+
	2611	+
	2612	+	considers relevant. 1
	2613	+
	2614	+	(b) (1) In addition to a loan guaranty, the [Authority] DEPARTMENT may 2
	2615	+	provide an interest subsidy for the benefit of the applicant. 3
	2616	+
	2617	+	(2) The subsidy: 4
	2618	+
	2619	+	(i) may be for the life of the loan; 5
	2620	+
	2621	+	(ii) may not exceed 4%; 6
	2622	+
	2623	+	(iii) shall be payable quarterly; and 7
	2624	+
	2625	+	(iv) shall be made to the financial institution that makes the loan 8
	2626	+	that the [Authority] DEPARTMENT guarantees. 9
	2627	+
	2628	+	(3) (i) The subsidy may not exceed the difference between: 10
	2629	+
	2630	+	1. the interest rate on the guaranteed loan; and 11
	2631	+
	2632	+	2. the discount interest rate that the Federal Reserve Bank 12
	2633	+	uses. 13
	2634	+
	2635	+	(ii) The interest rate may not exceed the monthly weighted average 14
	2636	+	of the prime lending rate that prevails in Baltimore City on unsecured commercial loans, 15
	2637	+	as the [Authority] DEPARTMENT determines as of the date of closing, plus 2%. 16
	2638	+
	2639	+	(4) The subsidy may not be paid during any period in which the loan is in 17
	2640	+	default. 18
	2641	+
	2642	+	(c) In providing financial assistance under this section, the [Authority] 19
	2643	+	DEPARTMENT shall recognize the need to serve applicants from all political subdivisions 20
	2644	+	in the State. 21
	2645	+
	2646	+	[5–541.] 5–525. 22
	2647	+
	2648	+	(a) If the applicant is a sole proprietor, to qualify for financial assistance under 23
	2649	+	this part the applicant shall satisfy the [Authority] DEPARTMENT that: 24
	2650	+
	2651	+	(1) the applicant is of good moral character; 25
	2652	+
	2653	+	(2) the applicant has a reputation for financial responsibility, as 26
	2654	+	determined from creditors, employers, and other individuals who have personal knowledge 27
	2655	+	of the applicant; 28
	2656	+
	2657	+	(3) the applicant is a resident of the State or the principal place of business 29 56 SENATE BILL 427
	2658	+
	2659	+
	2660	+	of the applicant is in the State; and 1
	2661	+
	2662	+	(4) the applicant is unable to obtain adequate business financing on 2
	2663	+	reasonable terms through normal lending channels because the applicant: 3
	2664	+
	2665	+	(i) belongs to a group that historically has been deprived of access 4
	2666	+	to normal economic or financial resources [because of race, color, creed, sex, religion, or 5
	2667	+	national origin]; 6
	2668	+
	2669	+	(ii) has an identifiable physical handicap that severely limits the 7
	2670	+	ability of the applicant to obtain financial assistance, but that does not limit the ability of 8
	2671	+	the applicant to perform the contract or other activity for which the applicant would be 9
	2672	+	receiving financial assistance; 10
	2673	+
	2674	+	(iii) has any other social or economic impediment that is beyond the 11
	2675	+	control of the applicant, but that does not limit the ability of the applicant to perform the 12
	2676	+	contract or other activity for which the applicant would be receiving financial assistance, 13
	2677	+	including: 14
	2678	+
	2679	+	1. the lack of formal education or financial capacity; or 15
	2680	+
	2681	+	2. geographical or regional economic distress; or 16
	2682	+
	2683	+	(iv) does not meet the established credit criteria of at least one 17
	2684	+	financial institution. 18
	2685	+
	2686	+	(b) If the applicant is not a sole proprietorship, to qualify for financial assistance 19
	2687	+	under this part at least 70% of the business enterprise shall be owned by individuals who 20
	2688	+	meet the qualifications for an individual applicant under subsection (a) of this section. 21
	2689	+
	2690	+	(c) An applicant for a loan guaranty shall have applied for and been denied a loan 22
	2691	+	by a financial institution. 23
	2692	+
	2693	+	[5–542.] 5–526. 24
	2694	+
	2695	+	(a) To apply for financial assistance from the Fund, a financial institution shall 25
	2696	+	submit to the [Authority] DEPARTMENT an application on the form that the [Authority] 26
	2697	+	DEPARTMENT provides WITH THE INFORMATION THE DEPARTMENT REQUIRES . 27
	2698	+
	2699	+	[(b) The application shall include: 28
	2700	+
	2701	+	(1) a detailed description of the proposed use of the loan proceeds, including 29
	2702	+	projected cash flow analyses, marketing plans, and appraisals; 30
	2703	+
	2704	+	(2) a detailed description of the funds available to the applicant; 31
	2705	+	SENATE BILL 427 57
	2706	+
	2707	+
	2708	+	(3) a detailed description of the proposed loan documents to be executed by 1
	2709	+	the financial institution and the applicant; 2
	2710	+
	2711	+	(4) a detailed description of the property proposed as collateral for the loan 3
	2712	+	and the financial institution’s certification of the property’s value; 4
	2713	+
	2714	+	(5) information that demonstrates the inability of the applicant to obtain 5
	2715	+	adequate financing on reasonable terms through normal lending channels; 6
	2716	+
	2717	+	(6) information that demonstrates the financial status of the applicant, 7
	2718	+	including: 8
	2719	+
	2720	+	(i) a current balance sheet; 9
	2721	+
	2722	+	(ii) a profit and loss statement; and 10
	2723	+
	2724	+	(iii) credit references; 11
	2725	+
	2726	+	(7) a proposed disbursement schedule; 12
	2727	+
	2728	+	(8) a proposed amortization schedule; 13
	2729	+
	2730	+	(9) a detailed description of the applicant’s experience in the trade or 14
	2731	+	business for which the loan and guarantee are requested; 15
	2732	+
	2733	+	(10) information that shows that the applicant satisfies the requirements of 16
	2734	+	§ 5–541 of this subtitle; and 17
	2735	+
	2736	+	(11) any other relevant information that the Authority requests.] 18
	2737	+
	2738	+	[(c)] (B) The [Authority] DEPARTMENT may require an applicant to provide an 19
	2739	+	audit report and balance sheet certified by an independent certified public accountant in 20
	2740	+	accordance with generally accepted accounting principles before the [Authority] 21
	2741	+	DEPARTMENT approves or denies the application. 22
	2742	+
	2743	+	[5–543.] 5–527. 23
	2744	+
	2745	+	A guaranty shall contain terms and conditions that the [Authority] DEPARTMENT 24
	2746	+	determines to be appropriate. 25
	2747	+
	2748	+	[5–544. 26
	2749	+
	2750	+	The Treasurer shall report each year to the Authority on: 27
	2751	+
	2752	+	(1) the status of the money invested under § 5–537 of this subtitle; 28
	2753	+	58 SENATE BILL 427
	2754	+
	2755	+
	2756	+	(2) the market value of the assets in the Fund as of the date of the report; 1
	2757	+	and 2
	2758	+
	2759	+	(3) the interest received from investments during the period covered by the 3
	2760	+	report.] 4
	2761	+
	2762	+	[5–545.] 5–528. 5
	2763	+
	2764	+	(a) A person may not knowingly make or cause to be made a false statement or 6
	2765	+	report in an application or document submitted to the [Authority] DEPARTMENT under 7
	2766	+	this part. 8
	2767	+
	2768	+	(b) A person may not knowingly make or cause to be made a false statement or 9
	2769	+	report to influence an action of the [Authority] DEPARTMENT under this part: 10
	2770	+
	2771	+	(1) on an application for financial assistance; or 11
	2772	+
	2773	+	(2) affecting financial assistance whether or not the assistance has already 12
	2774	+	been extended. 13
	2775	+
	2776	+	(c) A person who violates this section is guilty of a misdemeanor and on conviction 14
	2777	+	is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both. 15
	2778	+
	2779	+	[5–546.] 5–529. 16
	2780	+
	2781	+	If an applicant or financial institution violates any provision of the loan documents 17
	2782	+	or ceases to meet the requirements of this part, on reasonable notice to the applicant or 18
	2783	+	financial institution, the [Authority] DEPARTMENT may: 19
	2784	+
	2785	+	(1) withhold from the applicant further loan payments until the applicant 20
	2786	+	complies with the documents or requirements; 21
	2787	+
	2788	+	(2) withhold from the financial institution further interest subsidy 22
	2789	+	payments until the financial institution complies with the loan documents or requirements; 23
	2790	+	and 24
	2791	+
	2792	+	(3) exercise any other remedy for which the loan documents provide. 25
	2793	+
	2794	+	5–530. RESERVED. 26
	2795	+
	2796	+	5–531. RESERVED. 27
	2797	+
	2798	+	Part V. Equity Participation Investment Program. 28
	2799	+
	2800	+	[5–549.] 5–532. 29
	2801	+	SENATE BILL 427 59
	2802	+
	2803	+
	2804	+	(a) In this part the following words have the meanings indicated. 1
	2805	+
	2806	+	(b) (1) “Enterprise” means a business entity proposing to carry on a business 2
	2807	+	in the State that meets the requirements of [§ 5–526] § 5–515 of this subtitle. 3
	2808	+
	2809	+	(2) “Enterprise” includes: 4
	2810	+
	2811	+	(i) a sole proprietorship; 5
	2812	+
	2813	+	(ii) a partnership; 6
	2814	+
	2815	+	(III) A LIMITED LIABILITY CORPORATION ; 7
	2816	+
	2817	+	[(iii)] (IV) a limited partnership; 8
	2818	+
	2819	+	[(iv)] (V) a corporation; or 9
	2820	+
	2821	+	[(v)] (VI) a joint venture. 10
	2822	+
	2823	+	(c) “Equity participation financing” includes investment or guaranty of 11
	2824	+	investment in an enterprise. 12
	2825	+
	2826	+	(d) “Existing business” means a business whose board of directors or owners 13
	2827	+	approve the sale of the business to an enterprise receiving equity participation financing. 14
	2828	+
	2829	+	(e) [“Fund” means the Equity Participation Investment Program Fund. 15
	2830	+
	2831	+	(f)] “Program” means the Equity Participation Investment Program. 16
	2832	+
	2833	+	[(g)] (F) “Qualified security” means: 17
	2834	+
	2835	+	(1) a note, bond, debenture, or other evidence of indebtedness; 18
	2836	+
	2837	+	(2) stock or other form of equity participation; 19
	2838	+
	2839	+	(3) a certificate of interest or participation in a profit–sharing agreement; 20
	2840	+
	2841	+	(4) an investment contract; 21
	2842	+
	2843	+	(5) a certificate of deposit for a security; 22
	2844	+
	2845	+	(6) a certificate of interest or participation in a patent or patent application 23
	2846	+	or in royalty or other payments under a patent or patent application; or 24
	2847	+
	2848	+	(7) an interest or instrument commonly known as a “security” or a 25
	2849	+	certificate for, receipt for, guaranty of, or option, warrant, or right to subscribe to or 26 60 SENATE BILL 427
	2850	+
	2851	+
	2852	+	purchase a qualified security. 1
	2853	+
	2854	+	[(h)] (G) “Small business” means a business that is classified as a small business 2
	2855	+	under the U.S. Small Business Administration size standards. 3
	2856	+
	2857	+	[5–550.] 5–533. 4
1801	2858
1802	2859		(a) The General Assembly finds that: 5
1803	2860
1804		-	(1) the inability of socially or economically disadvantaged individuals to 6
1805		-	obtain working capital is a major limitation on their opportunity to win and perform 7
1806		-	government and other contracts; 8
1807		-
1808		-	(2) because socially or economically disadvantaged individuals frequently 9
1809		-	have been awarded government or other contracts but have lacked the working capital to 10
1810		-	post a bond, buy supplies needed to begin the work, or pay employees, these individuals 11
1811		-	have been unable to accept the contracts; 12
1812		-
1813		-	(3) some individuals are unable to obtain government and other contracts 13
1814		-	for reasons other than the cost to the owner or the ability to perform the contract work 14
1815		-	competently; 15
1816		-
1817		-	(4) socially or economically disadvantaged individuals frequently lack 16
1818		-	adequate capital to sustain and expand their businesses and to hire and train employees; 17
1819		-
1820		-	(5) because high risk, problem, or uncollectible loans are not in the interest 18
1821		-	of financial institutions, financial institutions generally are reluctant to lend money to 19
1822		-	socially or economically disadvantaged individuals with insufficient records of 20
1823		-	performance; 21
1824		-
1825		-	(6) the inability of businesses owned by socially or economically 22
1826		-	disadvantaged individuals to obtain long–term financing is a major limitation on their 23
1827		-	opportunity to survive and expand; and 24
1828		-
1829		-	(7) the public welfare is served by promoting the viability and expansion of 25
1830		-	businesses owned by economically or socially disadvantaged individuals, retaining or 26
1831		-	increasing the employment of these individuals, and expanding the taxable base of the 27
1832		-	economy of the State. 28
1833		-
1834		-	(b) The purposes of the [Authority] FUND are: 29
1835		-
1836		-	(1) to assist socially or economically disadvantaged individuals to obtain 30
1837		-	adequate working capital to begin, continue, and complete projects[, the majority of funding 31
1838		-	for which is provided by government entities or utilities]; 32
1839		-
1840		-	(2) to encourage socially or economically disadvantaged individuals to seek 33
1841		-	government and other contracts; 34 SENATE BILL 427 39
1842		-
1843		-
1844		-
1845		-	(3) to encourage financial institutions to make loans to these individuals; 1
1846		-	and 2
1847		-
1848		-	(4) to assist small businesses that are unable to obtain adequate business 3
1849		-	financing on reasonable terms through normal financing channels because the businesses 4
1850		-	do not meet the established credit criteria of financial institutions. 5
1851		-
1852		-	Part II. Maryland [Small Business Development Financing Authority] ECONOMIC 6
1853		-	INCLUSION FUND. 7
1854		-
1855		-	5–505. 8
1856		-
1857		-	(A) There is a Maryland [Small Business Development Financing Authority] 9
1858		-	ECONOMIC INCLUSION FUND in the Department. 10
1859		-
1860		-	(B) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT SUBJECT TO 11
1861		-	REVERSION UNDER § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
1862		-
1863		-	(C) THE TREASURER SHALL : 13
1864		-
1865		-	(1) INVEST THE MONEY IN THE FUND IN THE SAM E MANNER AS OTHER 14
1866		-	STATE MONEY MAY BE IN VESTED; 15
1867		-
1868		-	(2) CREDIT ANY INVESTMEN T EARNINGS TO THE FUND; AND 16
1869		-
1870		-	(3) REPORT EACH YEAR TO THE DEPARTMENT ON : 17
1871		-
1872		-	(I) THE STATUS OF THE MO NEY INVESTED UNDER T HIS 18
1873		-	SUBTITLE; 19
1874		-
1875		-	(II) THE MARKET VALUE OF THE ASSETS IN THE FUND AS OF THE 20
1876		-	DATE OF THE REPORT ; AND 21
1877		-
1878		-	(III) THE INTEREST RECEIVE D FROM INVESTMENTS D URING THE 22
1879		-	PERIOD COVERED BY TH E REPORT. 23
1880		-
1881		-	(D) (1) THE FUND IS THE SUCCESSOR OF THE SMALL BUSINESS 24
1882		-	DEVELOPMENT CONTRACT FINANCING FUND, THE SMALL BUSINESS 25
1883		-	DEVELOPMENT GUARANTY FUND, THE EQUITY PARTICIPATION INVESTMENT 26
1884		-	INCENTIVE PROGRAM FUND, AND THE SMALL BUSINESS SURETY BOND FUND 27
1885		-	ESTABLISHED UNDER TH E MARYLAND SMALL BUSINESS DEVELOPMENT 28
1886		-	FINANCING AUTHORITY. 29
1887		-	40 SENATE BILL 427
1888		-
1889		-
1890		-	(2) ALL FINANCIAL ASSISTA NCE TRANSACTIONS AND OBLIGATIONS 1
1891		-	APPROVED BY THE MARYLAND SMALL BUSINESS DEVELOPMENT FINANCING 2
1892		-	AUTHORITY SHALL CONTI NUE AS OBLIGATIONS O F THE FUND AND ARE 3
1893		-	AUTHORIZED UNDER THI S SUBTITLE. 4
1894		-
1895		-	[5–506. 5
1896		-
1897		-	(a) The Authority consists of the following nine members: 6
1898		-
1899		-	(1) seven members appointed by the Governor; 7
1900		-
1901		-	(2) the Secretary or the Secretary’s designee; and 8
1902		-
1903		-	(3) (i) the Comptroller or the Treasurer as designated by the Governor; 9
1904		-	or 10
1905		-
1906		-	(ii) the designee of the Governor’s designee. 11
1907		-
1908		-	(b) (1) The term of an appointed member is 5 years. 12
1909		-
1910		-	(2) The terms of appointed members are staggered as required for 13
1911		-	appointments to the Authority on October 1, 2008. 14
1912		-
1913		-	(3) At the end of a term, an appointed member continues to serve until a 15
1914		-	successor is appointed and qualifies. 16
1915		-
1916		-	(4) A member who is appointed after a term has begun serves only for the 17
1917		-	rest of the term and until a successor is appointed and qualifies. 18
1918		-
1919		-	(c) The Governor may remove an appointed member for cause.] 19
1920		-
1921		-	5–506. 20
1922		-
1923		-	THE FUND CONSISTS OF : 21
1924		-
1925		-	(1) PREMIUMS FOR GUARANT EEING LOANS UNDER THIS SUB TITLE; 22
1926		-
1927		-	(2) PREMIUMS FOR GUARANT EEING EQUITY INVESTM ENTS UNDER 23
1928		-	THIS SUBTITLE; 24
1929		-
1930		-	(3) REPAYMENTS OF PRINCI PAL OF AND INTEREST ON DIRECT LOANS 25
1931		-	AND EQUITY PARTICIPA TION FINANCING MADE UNDER THIS SUBTITLE ; 26
1932		-
1933		-	(4) PROCEEDS FROM THE SA LE, DISPOSITION, LEASE, OR RENTAL OF 27
1934		-	COLLATERAL FOR DIREC T LOANS, LOAN GUARANTIES , OR EQUITY PARTICIPAT ION 28
1935		-	FINANCING MADE UNDER THIS SUBTITLE; 29 SENATE BILL 427 41
1936		-
1937		-
1938		-
1939		-	(5) LOANS AND GRANTS FRO M THE FEDERAL GOVERN MENT OR A UNIT 1
1940		-	OR INSTRUMENTALITY O F THE FEDERAL GOVERNMENT ; 2
1941		-
1942		-	(6) GRANTS AND CONTRIBUT IONS OF FUNDS FROM T HE STATE, A 3
1943		-	POLITICAL SUBDIVISIO N, OR ANY OTHER SOURCE ; 4
1944		-
1945		-	(7) PREMIUMS FOR GUARANT EEING LONG TERM LOAN S UNDER § 5
1946		-	5–523 OF THIS SUBTITLE ; 6
1947		-
1948		-	(8) NOTWITHSTANDING § 10–469(E) AND (F) OF THIS ARTICLE OR ANY 7
1949		-	OTHER LAW , ANY RECOVERY OF INVE STMENTS MADE UNDER § 10–469 OF THIS 8
1950		-	ARTICLE THAT WERE FU NDED BY A TRANSFER O F MONEY FROM THE FUN DS UNDER 9
1951		-	THIS SUBTITLE TO THE ENTERPRISE FUND, INCLUDING AN INVESTM ENT IN MMG 10
1952		-	VENTURES LLP; 11
1953		-
1954		-	(9) NOTWITHSTANDING § 10–469(E) AND (F) OF THIS ARTICLE OR A NY 12
1955		-	OTHER LAW, ANY REPAYMENT OF A G RANT MADE UNDER § 10–469 OF THIS ARTICLE 13
1956		-	THAT WAS FUNDED BY A TRANSFER OF MONEY FR OM THE FUNDS UNDER T HIS 14
1957		-	SUBTITLE TO THE ENTERPRISE FUND; 15
1958		-
1959		-	(10) MONEY THAT THE STATE APPROPRIATES T O THE FUND; 16
1960		-
1961		-	(11) MONEY MADE AVAILABLE TO THE FUND THROUGH FEDERAL 17
1962		-	PROGRAMS OR PRIVATE CONTRIBUTIONS ; 18
1963		-
1964		-	(12) PREMIUMS, FEES, ROYALTIES, AND REPAYMENTS OF 19
1965		-	INVESTMENTS MADE UND ER THE TERMS OF BOND ING ASSISTANCE AND E QUITY 20
1966		-	PARTICIPATION FINANC ING; AND 21
1967		-
1968		-	(13) REPAYMENT OF FINANCI AL ASSISTANCE PROVID ED FROM THE 22
1969		-	MARYLAND ECONOMIC ADJUSTMENT FUND ESTABLISHED UNDE R § 5–203 OF THIS 23
1970		-	ARTICLE; AND 24
1971		-
1972		-	(14) (13) ALL OTHER RECEIPTS O F THE DEPARTMENT UNDER THIS 25
1973		-	SUBTITLE. 26
1974		-
1975		-	[5–507. 27
1976		-
1977		-	(a) The Authority shall elect a chair, vice chair, and treasurer from among its 28
1978		-	members. 29
1979		-
1980		-	(b) The Authority shall determine the manner of election of officers and their 30
1981		-	terms.] 31
1982		-	42 SENATE BILL 427
1983		-
1984		-
1985		-	5–507. 1
1986		-
1987		-	AT LEAST HALF OF THE ANNUAL APPROPRIATION TO THE FUND MUST BE 2
1988		-	RESERVED FOR BUSINES S ACTIVITIES INCLUDE D ON THE LIST OF INDUS TRIES AND 3
1989		-	ACTIVITIES DEVELOPED BY THE DEPARTMENT IN ACCORDA NCE WITH § 2.5–106 OF 4
1990		-	THIS ARTICLE. 5
1991		-
1992		-	[5–508. 6
1993		-
1994		-	(a) (1) Four members of the Authority are a quorum. 7
1995		-
1996		-	(2) The Authority may not act on any matter unless at least four members 8
1997		-	in attendance concur. 9
1998		-
1999		-	(b) The Authority shall determine the times and places of its meetings. 10
2000		-
2001		-	(c) A member of the Authority is entitled to reimbursement for expenses under 11
2002		-	the Standard State Travel Regulations, as provided in the State budget. 12
2003		-
2004		-	(d) The Authority may employ a staff in accordance with the State budget.] 13
2005		-
2006		-	5–508. 5–507. 14
2007		-
2008		-	IN ORDER TO ADMINISTE R THE FUND, THE DEPARTMENT MAY : 15
2009		-
2010		-	(1) CONTRACT FOR AND ENG AGE THE SERVICES OF A PRIVATE 16
2011		-	MARYLAND CORPORATION TO ADMINISTER SOME O R ALL OF THE PROGRAMS OF THE 17
2012		-	FUND; 18
2013		-
2014		-	(2) CONTRACT FOR AND ACC EPT, TO CARRY OUT THIS SU BTITLE, A 19
2015		-	LOAN OR GRANT FROM T HE FEDERAL GOVERNMEN T, A POLITICAL SUBDIVIS ION OF 20
2016		-	THE STATE, OR ANY OTHER SOURCE ; 21
2017		-
2018		-	(3) PURCHASE, RECEIVE, LEASE AS LESSEE, OR OTHERWISE ACQUIRE , 22
2019		-	SELL, MORTGAGE , LEASE AS LESSOR , PLEDGE, ADMINISTER, DISPOSE OF, OR 23
2020		-	OTHERWISE DEAL WITH PROPERTY GIVEN AS CO LLATERAL UNDER A LOA N 24
2021		-	AGREEMENT ON THE TER MS AND CONDITIONS IT CONSIDERS ADVISABLE ; 25
2022		-
2023		-	(4) ADOPT REGULATIONS NE CESSARY TO CARRY OUT ITS POWERS; 26
2024		-
2025		-	(5) ACQUIRE OR TAKE ASSIGN MENTS OF LOAN DOCUME NTS; AND 27
2026		-
2027		-	(6) DO ANYTHING NECESSAR Y OR CONVENIENT TO C ARRY OUT ITS 28
2028		-	POWERS. 29
2029		-	SENATE BILL 427 43
2030		-
2031		-
2032		-	[5–509. 1
2033		-
2034		-	(a) (1) The Executive Director is the chief administrative officer of the 2
2035		-	Authority. 3
2036		-
2037		-	(2) With the approval of the Secretary, the Authority may: 4
2038		-
2039		-	(i) appoint the Executive Director; or 5
2040		-
2041		-	(ii) contract with a private entity to perform the duties of the 6
2042		-	Executive Director. 7
2043		-
2044		-	(b) The Executive Director serves at the pleasure of the Authority, with the 8
2045		-	concurrence of the Secretary. 9
2046		-
2047		-	(c) In addition to any other duties set forth in this subtitle, the Executive Director 10
2048		-	shall: 11
2049		-
2050		-	(1) supervise the administrative affairs and technical activities of the 12
2051		-	Authority in accordance with its regulations and policies; 13
2052		-
2053		-	(2) attend all meetings of the Authority; 14
2054		-
2055		-	(3) keep minutes of all proceedings of the Authority; 15
2056		-
2057		-	(4) approve all accounts for salaries, per diem payments, and allowable 16
2058		-	expenses of the Authority, its employees, and its consultants; 17
2059		-
2060		-	(5) approve all expenses incidental to the operation of the Authority; and 18
2061		-
2062		-	(6) perform any other duty that the Authority or the Secretary requires to 19
2063		-	carry out this subtitle.] 20
2064		-
2065		-	[5–510. 21
2066		-
2067		-	A member of the Authority may not participate in any decision related to the 22
2068		-	approval of financial assistance if the member has any interest in: 23
2069		-
2070		-	(1) the applicant for the assistance; or 24
2071		-
2072		-	(2) the financial institution seeking a guaranty or an interest subsidy or 25
2073		-	both.] 26
2074		-
2075		-	[5–511. 27
2076		-
2077		-	(a) In this section, “Authority staff” means any of the individuals who are 28
2078		-	employed by the Department to operate the programs of the Authority immediately prior 29 44 SENATE BILL 427
2079		-
2080		-
2081		-	to the execution by the Department of a contract under this section with the private 1
2082		-	corporation organized by any of those individuals. 2
2083		-
2084		-	(b) (1) The Department may contract for and engage the services of some or 3
2085		-	all of the Authority staff to administer the programs of the Authority, for a period of 3 years, 4
2086		-	if the Authority staff has organized itself as a private Maryland corporation. 5
2087		-
2088		-	(2) The Department may: 6
2089		-
2090		-	(i) extend the termination date of the contract in effect as of 7
2091		-	September 30, 2008, to June 30, 2012, and modify that extended contract as needed; and 8
2092		-
2093		-	(ii) renew the extended contract for up to two additional 5–year 9
2094		-	terms, and modify that renewed and extended contract as needed. 10
2095		-
2096		-	(3) An extension or renewal contract shall include standards to evaluate 11
2097		-	the performance of the private contractor in rendering services under the contract. 12
2098		-
2099		-	(c) In its name the corporation may use “Maryland Small Business Development 13
2100		-	Financing Agency”, “MSBDFA, Inc.”, or any close approximation of those terms.] 14
2101		-
2102		-	[5–512. 15
2103		-
2104		-	(a) The Authority exercises its powers and performs its duties subject to the 16
2105		-	authority of the Secretary. 17
2106		-
2107		-	(b) The Authority may: 18
2108		-
2109		-	(1) adopt bylaws for the conduct of its business; 19
2110		-
2111		-	(2) adopt a seal; 20
2112		-
2113		-	(3) maintain offices in the State; 21
2114		-
2115		-	(4) sue and be sued in its own name; 22
2116		-
2117		-	(5) retain consultants; 23
2118		-
2119		-	(6) use the services of governmental units; 24
2120		-
2121		-	(7) contract for and accept, to carry out this subtitle, a loan or grant from 25
2122		-	the federal government, a political subdivision of the State, or any other source; 26
2123		-
2124		-	(8) purchase, receive, lease as lessee, or otherwise acquire, sell, mortgage, 27
2125		-	lease as lessor, pledge, administer, dispose of, or otherwise deal with property given as 28
2126		-	collateral under a loan agreement on the terms and conditions it considers advisable; 29
2127		-	SENATE BILL 427 45
2128		-
2129		-
2130		-	(9) adopt regulations necessary to carry out its powers; 1
2131		-
2132		-	(10) acquire or take assignments of loan documents; and 2
2133		-
2134		-	(11) do anything necessary or convenient to carry out its powers. 3
2135		-
2136		-	(c) The Authority shall: 4
2137		-
2138		-	(1) in its internal functions, follow the procedures of the State that govern 5
2139		-	the purchase of office space, supplies, facilities, materials, equipment, and professional 6
2140		-	services; 7
2141		-
2142		-	(2) keep proper records of its accounts; 8
2143		-
2144		-	(3) keep separate records for: 9
2145		-
2146		-	(i) the Small Business Development Contract Financing Fund 10
2147		-	under Part III of this subtitle; 11
2148		-
2149		-	(ii) the Small Business Development Guaranty Fund under Part IV 12
2150		-	of this subtitle; 13
2151		-
2152		-	(iii) the Equity Participation Investment Program Fund under Part 14
2153		-	V of this subtitle; and 15
2154		-
2155		-	(iv) the Small Business Surety Bond Fund under Part VI of this 16
2156		-	subtitle; and 17
2157		-
2158		-	(4) in accordance with § 2.5–109 of this article, submit a report on its 18
2159		-	condition and operations.] 19
2160		-
2161		-	[5–513. 20
2162		-
2163		-	(a) In any action, service of process on the Authority shall be made by service on 21
2164		-	the Executive Director of the Authority. 22
2165		-
2166		-	(b) Service may be made in person or by leaving a copy of the process at the office 23
2167		-	of the Executive Director with the individual in charge of the office.] 24
2168		-
2169		-	[5–514. 25
2170		-
2171		-	(a) Notwithstanding § 10–469(e) and (f) of this article or any other law, the 26
2172		-	following money shall be payable into the funds under this subtitle: 27
2173		-
2174		-	(1) any recovery of investments made under § 10–469 of this article that 28
2175		-	were funded by a transfer of money from the funds under this subtitle to the Enterprise 29
2176		-	Fund, including an investment in MMG Ventures LLP; and 30 46 SENATE BILL 427
2177		-
2178		-
2179		-
2180		-	(2) any repayment of a grant made under § 10–469 of this article that was 1
2181		-	funded by a transfer of money from the funds under this subtitle to the Enterprise Fund. 2
2182		-
2183		-	(b) The Authority shall determine the proportion of the recovery or repayment 3
2184		-	payable under subsection (a) of this section that shall be deposited into each of the funds 4
2185		-	under this subtitle.] 5
2186		-
2187		-	5–508. RESERVED. 6
2188		-
2189		-	5–509. RESERVED. 7
2190		-
2191		-	5–510. RESERVED. 8
2192		-
2193		-	Part III. Small Business Development Contract Financing [Fund] PROGRAM. 9
2194		-
2195		-	[5–517.] 5–511. 5–510. 10
2196		-
2197		-	In this part, [“Fund”] “PROGRAM” means the Small Business Development 11
2198		-	Contract Financing [Fund] PROGRAM. 12
2199		-
2200		-	[5–518.] 5–512. 5–511. 13
2201		-
2202		-	There is a Small Business Development Contract Financing [Fund] PROGRAM 14
2203		-	WITHIN THE FUND. 15
2204		-
2205		-	[5–519. 16
2206		-
2207		-	The Authority shall use the Fund to implement this part.] 17
2208		-
2209		-	[5–520. 18
2210		-
2211		-	The Authority shall administer the Fund.] 19
2212		-
2213		-	[5–521. 20
2214		-
2215		-	(a) The Fund is a special, nonlapsing fund that is not subject to reversion under 21
2216		-	§ 7–302 of the State Finance and Procurement Article. 22
2217		-
2218		-	(b) The Treasurer shall: 23
2219		-
2220		-	(1) invest the money in the Fund in the same manner as other State money 24
2221		-	may be invested; and 25
2222		-
2223		-	(2) credit any investment earnings to the Fund. 26
2224		-	SENATE BILL 427 47
2225		-
2226		-
2227		-	(c) If the Authority determines by resolution that any money in the Fund is no 1
2228		-	longer needed to meet its obligations, the Authority may authorize the Comptroller to first 2
2229		-	employ that money to pay the principal of and interest on outstanding bonds issued under 3
2230		-	any Act authorizing the issue of State general obligation bonds issued to implement this 4
2231		-	subtitle.] 5
2232		-
2233		-	[5–522. 6
2234		-
2235		-	The Fund consists of: 7
2236		-
2237		-	(1) premiums for guaranteeing loans under § 5–525(a) of this subtitle; 8
2238		-
2239		-	(2) premiums for guaranteeing equity investments under § 5–525(b) of this 9
2240		-	subtitle; 10
2241		-
2242		-	(3) repayments of principal of and interest on direct loans made under § 11
2243		-	5–525(c) of this subtitle; 12
2244		-
2245		-	(4) proceeds from the sale, disposition, lease, or rental of collateral for 13
2246		-	direct loans or loan guaranties made under § 5–525 of this subtitle; and 14
2247		-
2248		-	(5) all other receipts of the Authority under this part.] 15
2249		-
2250		-	[5–523. 16
2251		-
2252		-	(a) If the Authority and the Secretary determine that more money is needed to 17
2253		-	keep the Fund at an adequate level, the Authority shall send a written request for the 18
2254		-	additional money to the Board of Public Works. 19
2255		-
2256		-	(b) The Board of Public Works may pay the amount requested from the General 20
2257		-	Emergency Fund.] 21
2258		-
2259		-	[5–524.] 5–513. 5–512. 22
2260		-
2261		-	The [Authority] DEPARTMENT may use the Fund for: 23
2262		-
2263		-	(1) loan guaranties made under [§ 5–525(a)] § 5–514(A) § 5–513(A) of this 24
2264		-	subtitle; 25
2265		-
2266		-	(2) equity investment guaranties made under [§ 5–525(b)] § 5–514(B) § 26
2267		-	5–513(B) of this subtitle; 27
2268		-
2269		-	(3) direct loans made under [§ 5–525(c)] § 5–514(C) § 5–513(C) of this 28
2270		-	subtitle; and 29
2271		-
2272		-	(4) expenses for administrative, legal, actuarial, and other services. 30 48 SENATE BILL 427
2273		-
2274		-
2275		-
2276		-	[5–525.] 5–514. 5–513. 1
2277		-
2278		-	(a) (1) The [Authority] DEPARTMENT may use the Fund to guarantee a loan 2
2279		-	made to an applicant only if: 3
2280		-
2281		-	(i) the applicant meets the requirements of this part; 4
2282		-
2283		-	(ii) [the loan is to be used to perform a contract for which the 5
2284		-	majority of the funding is provided by the federal government, a state government, a local 6
2285		-	government, or a utility regulated by the Public Service Commission; 7
2286		-
2287		-	(iii)] the maximum amount payable by the [Authority] 8
2288		-	DEPARTMENT under the guaranty does not exceed [$2,000,000] $3,000,000; and 9
2289		-
2290		-	[(iv)] (III) the guaranteed loan is to be used for: 10
2291		-
2292		-	1. working capital; or 11
2293		-
2294		-	2. equipment needed to perform the contract, the cost of 12
2295		-	which can be repaid from contract proceeds, if the [Authority] DEPARTMENT has entered 13
2296		-	into an agreement with the applicant to secure the loan or guaranty. 14
2297		-
2298		-	(2) A guaranty made by the [Authority] DEPARTMENT may not exceed the 15
2299		-	term of the contract, unless the [Authority] DEPARTMENT determines that a longer term 16
2300		-	better serves the purposes of this subtitle. 17
2301		-
2302		-	(b) (1) The [Authority] DEPARTMENT may use the Fund to guarantee a 18
2303		-	person’s proposed equity investment in the applicant only if: 19
2304		-
2305		-	(i) the applicant meets the requirements of this part; 20
2306		-
2307		-	(ii) the amount of the equity investment to be guaranteed does not 21
2308		-	exceed the lesser of: 22
2309		-
2310		-	1. 10% of the person’s equity investment in the applicant; or 23
2311		-
2312		-	2. $250,000; AND 24
2313		-
2314		-	(iii) [the equity investment to be guaranteed is to be used to perform 25
2315		-	a contract for which the majority of funding is provided by the federal government, a state 26
2316		-	government, a local government, or a utility regulated by the Public Service Commission; 27
2317		-	and 28
2318		-
2319		-	(iv)] the equity investment to be guaranteed is to be used for: 29
2320		-	SENATE BILL 427 49
2321		-
2322		-
2323		-	1. working capital; or 1
2324		-
2325		-	2. equipment needed to perform the contract, the cost of 2
2326		-	which can be repaid from contract proceeds, if the [Authority] DEPARTMENT has entered 3
2327		-	into an agreement with the applicant to secure the guaranty. 4
2328		-
2329		-	(2) The [Authority] DEPARTMENT may not guarantee the equity 5
2330		-	investment of a person who: 6
2331		-
2332		-	(i) previously held an equity investment in the applicant; 7
2333		-
2334		-	(ii) previously participated in the management of the applicant; or 8
2335		-
2336		-	(iii) in any other manner is related to: 9
2337		-
2338		-	1. the applicant; or 10
2339		-
2340		-	2. any of the current stockholders, officers, or management 11
2341		-	personnel of the applicant. 12
2342		-
2343		-	(c) (1) The [Authority] DEPARTMENT may use the Fund to lend money to an 13
2344		-	applicant only if: 14
2345		-
2346		-	(i) the applicant meets the requirements of this part; 15
2347		-
2348		-	(ii) the applicant is unable to obtain money on reasonable terms 16
2349		-	through normal lending channels from another source; 17
2350		-
2351		-	(iii) the loan does not exceed [$2,000,000] $3,000,000; AND 18
2352		-
2353		-	(iv) [the loan is to be used to perform a contract for which the 19
2354		-	majority of funding is provided by the federal government, a state government, a local 20
2355		-	government, or a utility regulated by the Public Service Commission; and 21
2356		-
2357		-	(v)] the loan is to be used for: 22
2358		-
2359		-	1. working capital; or 23
2360		-
2361		-	2. equipment needed to perform the contract, if the contract 24
2362		-	proceeds can repay the cost of the equipment and if the [Authority] DEPARTMENT has 25
2363		-	entered into an agreement with the applicant to secure the loan. 26
2364		-
2365		-	(2) A loan that the [Authority] DEPARTMENT makes shall mature not 27
2366		-	later than the term of the contract, unless the [Authority] DEPARTMENT finds that a 28
2367		-	longer term better serves the purposes of this part. 29
2368		-	50 SENATE BILL 427
2369		-
2370		-
2371		-	(d) In providing financial assistance under this section, the [Authority] 1
2372		-	DEPARTMENT shall recognize the need to serve applicants from all political subdivisions 2
2373		-	in the State. 3
2374		-
2375		-	[5–526.] 5–515. 5–514. 4
2376		-
2377		-	(a) If the applicant is an individual, to qualify for financial assistance under this 5
2378		-	part the applicant shall satisfy the [Authority] DEPARTMENT that: 6
2379		-
2380		-	(1) the applicant is of good moral character; 7
2381		-
2382		-	(2) the applicant has a reputation for financial responsibility, as 8
2383		-	determined from creditors, employers, and other individuals who have personal knowledge 9
2384		-	of the applicant; 10
2385		-
2386		-	(3) the applicant is a resident of the State or the principal place of business 11
2387		-	of the applicant is in the State; and 12
2388		-
2389		-	(4) the applicant is unable to obtain adequate business financing on 13
2390		-	reasonable terms through normal lending channels because the applicant: 14
2391		-
2392		-	(i) belongs to a group that historically has been deprived of access 15
2393		-	to normal economic or financial resources [because of race, color, creed, sex, religion, or 16
2394		-	national origin]; 17
2395		-
2396		-	(ii) has an identifiable physical handicap that severely limits the 18
2397		-	ability of the applicant to obtain financial assistance, but that does not limit the ability of 19
2398		-	the applicant to perform the contract or other activity for which the applicant would be 20
2399		-	receiving financial assistance; 21
2400		-
2401		-	(iii) has any other social or economic impediment that is beyond the 22
2402		-	control of the applicant but that does not limit the ability of the applicant to perform the 23
2403		-	contract or other activity for which the applicant would be receiving financial assistance, 24
2404		-	including: 25
2405		-
2406		-	1. the lack of formal education or financial capacity; or 26
2407		-
2408		-	2. geographical or regional economic distress; or 27
2409		-
2410		-	(iv) does not meet the established credit criteria of at least one 28
2411		-	financial institution. 29
2412		-
2413		-	(b) If the applicant is a business enterprise that is not a sole proprietorship, to 30
2414		-	qualify for financial assistance under this part at least 70% of the business enterprise shall 31
2415		-	be owned by individuals who meet the qualifications for an individual applicant under 32
2416		-	subsection (a) of this section. 33 SENATE BILL 427 51
2417		-
2418		-
2419		-
2420		-	(c) An applicant for a loan guaranty shall have applied for and been denied a loan 1
2421		-	by a financial institution. 2
2422		-
2423		-	[5–527.] 5–516. 5–515. 3
2424		-
2425		-	(a) To apply for financial assistance from the Fund under [§ 5–525] § 5–514 § 4
2426		-	5–513 of this subtitle, an applicant shall submit to the [Authority] DEPARTMENT an 5
2427		-	application on the form that the [Authority] DEPARTMENT provides WITH THE 6
2428		-	INFORMATION THE DEPARTMENT REQU IRES. 7
2429		-
2430		-	[(b) The application shall: 8
2431		-
2432		-	(1) describe the project in detail; 9
2433		-
2434		-	(2) itemize known and estimated costs; 10
2435		-
2436		-	(3) specify the total amount of investment required to perform the contract; 11
2437		-
2438		-	(4) specify the amount of funds available to the applicant without financial 12
2439		-	assistance from the Authority; 13
2440		-
2441		-	(5) specify the amount of financial assistance requested from the 14
2442		-	Authority; 15
2443		-
2444		-	(6) provide information that demonstrates the inability of the applicant to 16
2445		-	obtain adequate financing on reasonable terms through normal lending channels; 17
2446		-
2447		-	(7) provide information that demonstrates the financial status of the 18
2448		-	applicant, including: 19
2449		-
2450		-	(i) a current balance sheet; 20
2451		-
2452		-	(ii) a profit and loss statement; and 21
2453		-
2454		-	(iii) credit references; and 22
2455		-
2456		-	(8) contain any other relevant information that the Authority requires.] 23
2457		-
2458		-	[(c)] (B) The [Authority] DEPARTMENT may require an applicant to provide an 24
2459		-	audited balance sheet before the [Authority] DEPARTMENT approves or denies the 25
2460		-	application. 26
2461		-
2462		-	[(d) The Authority may delegate the review and approval of the application 27
2463		-	information required under subsection (b)(1), (2), and (3) of this section to the Executive 28
2464		-	Director if an applicant meets all other requirements of this section.] 29 52 SENATE BILL 427
2465		-
2466		-
2467		-
2468		-	[5–528.] 5–517. 5–516. 1
2469		-
2470		-	(a) The [Authority] DEPARTMENT may set the terms and conditions for a loan 2
2471		-	guaranty made under [§ 5–525(a)] § 5–514(A) § 5–513(A) of this subtitle. 3
2472		-
2473		-	(b) (1) If the [Authority] DEPARTMENT decides to lend money from the Fund 4
2474		-	to an applicant under [§ 5–525(c)] § 5–514(C) § 5–513(C) of this subtitle, the [Authority] 5
2475		-	DEPARTMENT shall prepare loan documents that include: 6
2476		-
2477		-	(i) the interest rate on the loan that equals the market rate for a 7
2478		-	conventional loan of comparable risk unless the [Authority] DEPARTMENT determines 8
2479		-	that a lower rate better serves the purposes of this subtitle; 9
2480		-
2481		-	(ii) a disbursement schedule that provides enough money to the 10
2482		-	applicant when the applicant needs it to perform the contract; 11
2483		-
2484		-	(iii) a requirement that the applicant and the [Authority] 12
2485		-	DEPARTMENT co–sign each request for an advance of money before release of the money; 13
2486		-	and 14
2487		-
2488		-	(iv) provisions for repayment of the loan. 15
2489		-
2490		-	(2) The loan documents may include any other provision that the 16
2491		-	[Authority] DEPARTMENT determines is necessary to secure the loan, including an 17
2492		-	assignment of or a lien on payment under the contract. 18
2493		-
2494		-	[5–529. 19
2495		-
2496		-	The Treasurer shall report each year to the Authority on: 20
2497		-
2498		-	(1) the status of the money invested under § 5–521 of this subtitle; 21
2499		-
2500		-	(2) the market value of the assets in the Fund as of the date of the report; 22
2501		-	and 23
2502		-
2503		-	(3) the interest received from investments during the period covered by the 24
2504		-	report.] 25
2505		-
2506		-	[5–530.] 5–518. 5–517. 26
2507		-
2508		-	(a) A person may not knowingly make or cause to be made a false statement or 27
2509		-	report in an application or document submitted to the [Authority] DEPARTMENT under 28
2510		-	this part. 29
2511		-	SENATE BILL 427 53
2512		-
2513		-
2514		-	(b) A person may not knowingly make or cause to be made a false statement or 1
2515		-	report to influence an action of the [Authority] DEPARTMENT under this part: 2
2516		-
2517		-	(1) on an application for financial assistance; or 3
2518		-
2519		-	(2) affecting financial assistance whether or not the assistance has already 4
2520		-	been extended. 5
2521		-
2522		-	(c) A person who violates this section is guilty of a misdemeanor and on conviction 6
2523		-	is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both. 7
2524		-
2525		-	5–519. 5–518. RESERVED. 8
2526		-
2527		-	5–520. 5–519. RESERVED. 9
2528		-
2529		-	Part IV. Small Business Development Guaranty [Fund] PROGRAM. 10
2530		-
2531		-	[5–533.] 5–521. 5–520. 11
2532		-
2533		-	In this part, [“Fund”] “PROGRAM” means the Small Business Development 12
2534		-	Guaranty [Fund] PROGRAM. 13
2535		-
2536		-	[5–534.] 5–522. 5–521. 14
2537		-
2538		-	There is a Small Business Development Guaranty PROGRAM WITHIN THE Fund. 15
2539		-
2540		-	[5–535. 16
2541		-
2542		-	The Authority shall use the Fund to implement this part.] 17
2543		-
2544		-	[5–536. 18
2545		-
2546		-	The Authority shall administer the Fund.] 19
2547		-
2548		-	[5–537. 20
2549		-
2550		-	(a) The Fund is a special, nonlapsing fund that is not subject to reversion under 21
2551		-	§ 7–302 of the State Finance and Procurement Article. 22
2552		-
2553		-	(b) The Treasurer shall: 23
2554		-
2555		-	(1) invest the money in the Fund in the same manner as other State money 24
2556		-	may be invested; and 25
2557		-
2558		-	(2) credit any investment earnings to the Fund. 26
2559		-	54 SENATE BILL 427
2560		-
2561		-
2562		-	(c) If the Authority determines by resolution that any money in the Fund is no 1
2563		-	longer needed to meet its obligations, the Authority may authorize the Comptroller to first 2
2564		-	apply that money to pay the principal of and interest on outstanding bonds issued under 3
2565		-	any Act authorizing the issue of State general obligation bonds issued to implement this 4
2566		-	subtitle.] 5
2567		-
2568		-	[5–538. 6
2569		-
2570		-	The Fund consists of: 7
2571		-
2572		-	(1) loans and grants from the federal government or a unit or 8
2573		-	instrumentality of the federal government; 9
2574		-
2575		-	(2) grants and contributions of funds from the State, a political subdivision, 10
2576		-	or any other source; 11
2577		-
2578		-	(3) premiums for guaranteeing long–term loans under § 5–540 of this 12
2579		-	subtitle; 13
2580		-
2581		-	(4) proceeds from the sale, disposition, lease, or rental of collateral by the 14
2582		-	Authority relating to loans guaranteed under § 5–540 of this subtitle; and 15
2583		-
2584		-	(5) all other receipts of the Authority under this part.] 16
2585		-
2586		-	[5–539.] 5–523. 5–522. 17
2587		-
2588		-	The [Authority] DEPARTMENT may use the Fund for: 18
2589		-
2590		-	(1) guaranty payments made under [§ 5–540(a)] § 5–524(A) § 5–523(A) of 19
2591		-	this subtitle; 20
2592		-
2593		-	(2) interest subsidy payments under [§ 5–540(b)] § 5–524(B) § 5–523(B) 21
2594		-	of this subtitle; and 22
2595		-
2596		-	(3) expenses for administrative, legal, actuarial, and other services. 23
2597		-
2598		-	[5–540.] 5–524. 5–523. 24
2599		-
2600		-	(a) (1) The [Authority] DEPARTMENT may use the Fund to guarantee up to 25
2601		-	80% of the principal of and interest on a long–term loan made by a financial institution to 26
2602		-	an applicant only if: 27
2603		-
2604		-	(i) the applicant meets the requirements under [§ 5–541] § 5–525 28
2605		-	§ 5–524 of this subtitle and has not violated [§ 5–545] § 5–528 § 5–527 of this subtitle; 29
2606		-	SENATE BILL 427 55
2607		-
2608		-
2609		-	(ii) the loan amount is $5,000 or more and the maximum amount 1
2610		-	payable by the [Authority] DEPARTMENT under the guaranty does not exceed 2
2611		-	[$2,000,000] $3,000,000; 3
2612		-
2613		-	(iii) the loan is used for: 4
2614		-
2615		-	1. working capital; 5
2616		-
2617		-	2. refinancing the applicant’s existing debt; 6
2618		-
2619		-	3. acquisition and installation of equipment; 7
2620		-
2621		-	4. making necessary improvements to real property that the 8
2622		-	applicant leases or owns in fee simple; or 9
2623		-
2624		-	5. acquiring real property that the applicant will own in fee 10
2625		-	simple if the property is to be used in the applicant’s trade or business for which the 11
2626		-	guaranty is sought and the financial institution or the [Authority] DEPARTMENT places a 12
2627		-	lien on the property; 13
2628		-
2629		-	(iv) the loan matures within 10 years after the closing date of the 14
2630		-	loan; and 15
2631		-
2632		-	(v) the interest rate does not exceed the monthly weighted average 16
2633		-	of the prime lending rate prevailing in Baltimore City on unsecured commercial loans, plus 17
2634		-	2%, as determined by the [Authority] DEPARTMENT . 18
2635		-
2636		-	(2) (i) The [Authority] DEPARTMENT may only approve a guaranty 19
2637		-	under this section if the [Authority] DEPARTMENT determines that the loan to be 20
2638		-	guaranteed will have a substantial economic impact. 21
2639		-
2640		-	(ii) To determine the economic impact of a loan, the [Authority] 22
2641		-	DEPARTMENT may consider: 23
2642		-
2643		-	1. the amount of the guaranty obligation; 24
2644		-
2645		-	2. the terms of the loan to be guaranteed; 25
2646		-
2647		-	3. the number of new jobs that the loan will create; and 26
2648		-
2649		-	4. any other factor that the [Authority] DEPARTMENT 27
2650		-	considers relevant. 28
2651		-
2652		-	(b) (1) In addition to a loan guaranty, the [Authority] DEPARTMENT may 29
2653		-	provide an interest subsidy for the benefit of the applicant. 30
2654		-	56 SENATE BILL 427
2655		-
2656		-
2657		-	(2) The subsidy: 1
2658		-
2659		-	(i) may be for the life of the loan; 2
2660		-
2661		-	(ii) may not exceed 4%; 3
2662		-
2663		-	(iii) shall be payable quarterly; and 4
2664		-
2665		-	(iv) shall be made to the financial institution that makes the loan 5
2666		-	that the [Authority] DEPARTMENT guarantees. 6
2667		-
2668		-	(3) (i) The subsidy may not exceed the difference between: 7
2669		-
2670		-	1. the interest rate on the guaranteed loan; and 8
2671		-
2672		-	2. the discount interest rate that the Federal Reserve Bank 9
2673		-	uses. 10
2674		-
2675		-	(ii) The interest rate may not exceed the monthly weighted average 11
2676		-	of the prime lending rate that prevails in Baltimore City on unsecured commercial loans, 12
2677		-	as the [Authority] DEPARTMENT determines as of the date of closing, plus 2%. 13
2678		-
2679		-	(4) The subsidy may not be paid during any period in which the loan is in 14
2680		-	default. 15
2681		-
2682		-	(c) In providing financial assistance under this section, the [Authority] 16
2683		-	DEPARTMENT shall recognize the need to serve applicants from all political subdivisions 17
2684		-	in the State. 18
2685		-
2686		-	[5–541.] 5–525. 5–524. 19
2687		-
2688		-	(a) If the applicant is a sole proprietor, to qualify for financial assistance under 20
2689		-	this part the applicant shall satisfy the [Authority] DEPARTMENT that: 21
	2861	+	(1) small businesses have proven to be a fast growing and reliable form of 6
	2862	+	successful business expansion and successful new business creation; 7
	2863	+
	2864	+	(2) small businesses play a major role in the economy of the State and have 8
	2865	+	been a continuing source of increasing tax revenues and job opportunities; 9
	2866	+
	2867	+	(3) the growth of small businesses should be encouraged and should be an 10
	2868	+	integral part of the State’s economic development effort; 11
	2869	+
	2870	+	(4) socially or economically disadvantaged individuals often lack adequate 12
	2871	+	capital and are unable to obtain financing from financial institutions or venture capital 13
	2872	+	firms to begin and develop a small business, or to purchase an existing business; and 14
	2873	+
	2874	+	(5) promoting the creation and viability of small businesses and the 15
	2875	+	purchase of existing businesses by socially or economically disadvantaged individuals is in 16
	2876	+	the public interest. 17
	2877	+
	2878	+	(b) The purposes of the Equity Participation Investment Program are to: 18
	2879	+
	2880	+	(1) encourage and help socially or economically disadvantaged individuals 19
	2881	+	to create and develop small businesses and acquire existing businesses in the State; and 20
	2882	+
	2883	+	(2) assist small businesses that, because they do not meet the established 21
	2884	+	credit criteria of financial institutions, cannot obtain adequate business financing on 22
	2885	+	reasonable terms through normal financing channels. 23
	2886	+
	2887	+	[5–551.] 5–534. 24
	2888	+
	2889	+	There is an Equity Participation Investment Program in the [Department] FUND. 25
	2890	+
	2891	+	[5–552. 26
	2892	+
	2893	+	The Authority shall administer the Program.] 27
	2894	+
	2895	+	[5–553.] 5–535. 28
	2896	+
	2897	+	The [Authority] DEPARTMENT may: 29 SENATE BILL 427 61
	2898	+
	2899	+
	2900	+
	2901	+	(1) provide equity participation financing to help socially or economically 1
	2902	+	disadvantaged individuals in the State create and develop small businesses and acquire 2
	2903	+	existing businesses; 3
	2904	+
	2905	+	(2) buy, hold, and sell qualified securities; 4
	2906	+
	2907	+	(3) prepare, publish, and distribute technical studies, reports, and other 5
	2908	+	materials with or without charge; and 6
	2909	+
	2910	+	(4) provide and pay for advisory services and technical assistance that are 7
	2911	+	necessary or desirable to carry out the Program. 8
	2912	+
	2913	+	[5–554. 9
	2914	+
	2915	+	There is an Equity Participation Investment Program Fund.] 10
	2916	+
	2917	+	[5–555.] 5–536. 11
	2918	+
	2919	+	[(a) The Authority shall administer the Fund. 12
	2920	+
	2921	+	(b) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 13
	2922	+	under § 7–302 of the State Finance and Procurement Article. 14
	2923	+
	2924	+	(2) The Treasurer shall hold the Fund separately, and the Comptroller 15
	2925	+	shall account for the Fund. 16
	2926	+
	2927	+	(c) The Fund consists of: 17
	2928	+
	2929	+	(1) money drawn from the Small Business Development Guaranty Fund 18
	2930	+	established under Part IV of this subtitle; 19
	2931	+
	2932	+	(2) money the State appropriates to the Fund; 20
	2933	+
	2934	+	(3) money made available to the Fund through federal programs or private 21
	2935	+	contributions; 22
	2936	+
	2937	+	(4) proceeds from the sale, disposition, lease, or rental by the Authority of 23
	2938	+	collateral related to equity participation financing; 24
	2939	+
	2940	+	(5) premiums, fees, royalties, and repayments of principal, interest, and 25
	2941	+	investments paid by and on behalf of enterprises to the Authority under the terms of equity 26
	2942	+	participation financing; and 27
	2943	+
	2944	+	(6) any other money made available under the Program. 28
	2945	+
	2946	+	(d)] The [Authority] DEPARTMENT shall use the Fund to: 29 62 SENATE BILL 427
	2947	+
	2948	+
	2949	+
	2950	+	(1) purchase qualified securities that an enterprise issues to provide equity 1
	2951	+	participation financing as the Program allows; 2
	2952	+
	2953	+	(2) provide guaranties of investments to expand the capital resources of 3
	2954	+	enterprises; 4
	2955	+
	2956	+	(3) purchase advisory services and technical assistance consistent with the 5
	2957	+	Program; 6
	2958	+
	2959	+	(4) purchase securities in which a fiduciary of the State may lawfully 7
	2960	+	invest; 8
	2961	+
	2962	+	(5) provide equity participation financing as the Program allows; and 9
	2963	+
	2964	+	(6) pay for administrative, legal, and actuarial services that relate to the 10
	2965	+	Program. 11
	2966	+
	2967	+	[(e) The Fund shall be self–sustaining and shall achieve investment returns on its 12
	2968	+	portfolio in the form of: 13
	2969	+
	2970	+	(1) royalties from enterprises in amounts to be determined by the 14
	2971	+	Authority; and 15
	2972	+
	2973	+	(2) interest payments from any debt securities. 16
	2974	+
	2975	+	(f) As needed for the Program, the Authority may withdraw from time to time up 17
	2976	+	to a total of $2,000,000 from the Small Business Development Guaranty Fund and deposit 18
	2977	+	the withdrawal into the Fund. 19
	2978	+
	2979	+	(g) (1) The Treasurer shall invest the money of the Fund in the same manner 20
	2980	+	as other State money may be invested. 21
	2981	+
	2982	+	(2) Any investment earnings of the Fund shall be paid into the Fund. 22
	2983	+
	2984	+	(h) In accordance with § 2.5–109 of this article, the Authority shall submit a 23
	2985	+	report on the Program.] 24
	2986	+
	2987	+	[5–556.] 5–537. 25
	2988	+
	2989	+	[(a)] The [Authority] DEPARTMENT may provide equity participation financing 26
	2990	+	under the Program only after the enterprise submits an application [that contains a 27
	2991	+	business plan that meets the requirements of subsection (b) of this section] ON THE FORM 28
	2992	+	THAT THE DEPARTMENT PROVIDES W ITH THE INFORMATION THE DEPARTMENT 29
	2993	+	REQUIRES. 30
	2994	+	SENATE BILL 427 63
	2995	+
	2996	+
	2997	+	[(b) The business plan of an enterprise shall include: 1
	2998	+
	2999	+	(1) a description of the small business or existing business and its 2
	3000	+	management, product, and market; 3
	3001	+
	3002	+	(2) a statement of the amount, immediacy of need, and projected use of the 4
	3003	+	capital required; 5
	3004	+
	3005	+	(3) a statement of the potential economic impact of the purchase; 6
	3006	+
	3007	+	(4) information that relates to the satisfaction of the applicant’s 7
	3008	+	requirements of § 5–557(d) and (e) of this subtitle; and 8
	3009	+
	3010	+	(5) any other information the Authority requires.] 9
	3011	+
	3012	+	[5–557.] 5–538. 10
	3013	+
	3014	+	(a) (1) Under the Program the [Authority] DEPARTMENT may not: 11
	3015	+
	3016	+	(i) own securities representing more than 49% of the voting stock of 12
	3017	+	a small business or own an interest greater than 49% in a small business; or 13
	3018	+
	3019	+	(ii) own securities representing more than 49% of the voting stock of 14
	3020	+	an enterprise acquiring an existing business or own an interest greater than 49% in an 15
	3021	+	enterprise acquiring an existing business. 16
	3022	+
	3023	+	(2) The amount of the [Authority’s] DEPARTMENT ’S equity participation 17
	3024	+	financing in an enterprise may not exceed $2,000,000. 18
	3025	+
	3026	+	(3) Before providing equity participation financing, the [Authority] 19
	3027	+	DEPARTMENT shall find that there is a reasonable probability that the [Authority] 20
	3028	+	DEPARTMENT will recover its initial investment and an adequate return on investment 21
	3029	+	from the equity participation financing. 22
	3030	+
	3031	+	(4) The [Authority’s] DEPARTMENT ’S investment shall be recoverable 23
	3032	+	within 7 years after the equity participation financing. 24
	3033	+
	3034	+	(5) The [Authority’s] DEPARTMENT ’S recovery shall be the greater of: 25
	3035	+
	3036	+	(i) the current value of the percentage of the equity investment in 26
	3037	+	the enterprise; or 27
	3038	+
	3039	+	(ii) the amount of the initial investment in the enterprise. 28
	3040	+
	3041	+	(6) If there is a dispute between the borrower and the [Authority] 29
	3042	+	DEPARTMENT as to the value of the business entity at the time of recovery, the value shall 30 64 SENATE BILL 427
	3043	+
	3044	+
	3045	+	be determined after obtaining at least one independent appraisal of the value from an 1
	3046	+	appraiser selected from a list of at least three appraisers supplied by the [Authority] 2
	3047	+	DEPARTMENT . 3
	3048	+
	3049	+	(b) When an enterprise applies to the [Authority] DEPARTMENT for equity 4
	3050	+	participation financing to acquire an existing business, an enterprise or its principals shall 5
	3051	+	have: 6
	3052	+
	3053	+	(1) an equity investment equal to at least 5% of the total cost of acquisition; 7
	3054	+	and 8
	3055	+
	3056	+	(2) at least 3 years of successful experience with demonstrated 9
	3057	+	achievements and management responsibilities. 10
	3058	+
	3059	+	(c) The [Authority] DEPARTMENT may provide equity participation financing 11
	3060	+	for the acquisition of an existing business if the existing business: 12
	3061	+
	3062	+	(1) has been in existence for at least 5 years; 13
	3063	+
	3064	+	(2) has been profitable for at least 2 of the previous 3 years; 14
	3065	+
	3066	+	(3) has sufficient cash flow to service the debt and ensure adequate return 15
	3067	+	of the [Authority’s] DEPARTMENT ’S investment; 16
	3068	+
	3069	+	(4) has the capacity for growth and job creation; 17
	3070	+
	3071	+	(5) has its principal place of business in the State; and 18
	3072	+
	3073	+	(6) has a strong customer base. 19
	3074	+
	3075	+	(d) If the applicant enterprise is a sole proprietorship, to qualify for financial 20
	3076	+	assistance under this part, the applicant shall satisfy the [Authority] DEPARTMENT that: 21
2690	3077
2691	3078		(1) the applicant is of good moral character; 22
2692	3079
2693	3080		(2) the applicant has a reputation for financial responsibility, as 23
2694	3081		determined from creditors, employers, and other individuals who have personal knowledge 24
2695	3082		of the applicant; 25
2696	3083
2697	3084		(3) the applicant is a resident of the State or the principal place of business 26
2698	3085		of the applicant is in the State; and 27
2699	3086
2700	3087		(4) the applicant is unable to obtain adequate business financing on 28
2701	3088		reasonable terms through normal lending channels because the applicant: 29
2702		-	SENATE BILL 427 57
2703		-
2704		-
2705		-	(i) belongs to a group that historically has been deprived of access 1
2706		-	to normal economic or financial resources [because of race, color, creed, sex, religion, or 2
2707		-	national origin]; 3
2708		-
2709		-	(ii) has an identifiable physical handicap that severely limits the 4
2710		-	ability of the applicant to obtain financial assistance, but that does not limit the ability of 5
2711		-	the applicant to perform the contract or other activity for which the applicant would be 6
2712		-	receiving financial assistance; 7
2713		-
2714		-	(iii) has any other social or economic impediment that is beyond the 8
2715		-	control of the applicant, but that does not limit the ability of the applicant to perform the 9
2716		-	contract or other activity for which the applicant would be receiving financial assistance, 10
2717		-	including: 11
2718		-
2719		-	1. the lack of formal education or financial capacity; or 12
2720		-
2721		-	2. geographical or regional economic distress; or 13
2722		-
2723		-	(iv) does not meet the established credit criteria of at least one 14
2724		-	financial institution. 15
2725		-
2726		-	(b) If the applicant is not a sole proprietorship, to qualify for financial assistance 16
2727		-	under this part at least 70% of the business enterprise shall be owned by individuals who 17
2728		-	meet the qualifications for an individual applicant under subsection (a) of this section. 18
2729		-
2730		-	(c) An applicant for a loan guaranty shall have applied for and been denied a loan 19
2731		-	by a financial institution. 20
2732		-
2733		-	[5–542.] 5–526. 5–525. 21
2734		-
2735		-	(a) To apply for financial assistance from the Fund, a financial institution shall 22
2736		-	submit to the [Authority] DEPARTMENT an application on the form that the [Authority] 23
2737		-	DEPARTMENT provides WITH THE INFORMATION THE DEPARTMENT REQUIRES . 24
2738		-
2739		-	[(b) The application shall include: 25
2740		-
2741		-	(1) a detailed description of the proposed use of the loan proceeds, including 26
2742		-	projected cash flow analyses, marketing plans, and appraisals; 27
2743		-
2744		-	(2) a detailed description of the funds available to the applicant; 28
2745		-
2746		-	(3) a detailed description of the proposed loan documents to be executed by 29
2747		-	the financial institution and the applicant; 30
2748		-
2749		-	(4) a detailed description of the property proposed as collateral for the loan 31
2750		-	and the financial institution’s certification of the property’s value; 32 58 SENATE BILL 427
2751		-
2752		-
2753		-
2754		-	(5) information that demonstrates the inability of the applicant to obtain 1
2755		-	adequate financing on reasonable terms through normal lending channels; 2
2756		-
2757		-	(6) information that demonstrates the financial status of the applicant, 3
	3089	+
	3090	+	(i) belongs to a group that historically has been deprived of access 30 SENATE BILL 427 65
	3091	+
	3092	+
	3093	+	to normal economic or financial resources [because of race, color, creed, sex, religion, or 1
	3094	+	national origin]; 2
	3095	+
	3096	+	(ii) has an identifiable physical handicap that severely limits the 3
	3097	+	ability of the applicant to obtain financial assistance, but that does not limit the ability of 4
	3098	+	the applicant to perform the contract or other activity for which the applicant would be 5
	3099	+	receiving financial assistance; 6
	3100	+
	3101	+	(iii) has any other social or economic impediment that is beyond the 7
	3102	+	control of the applicant, but that does not limit the ability of the applicant to perform the 8
	3103	+	contract or other activity for which the applicant would be receiving financial assistance, 9
	3104	+	including: 10
	3105	+
	3106	+	1. the lack of formal education or financial capacity; or 11
	3107	+
	3108	+	2. geographical or regional economic distress; or 12
	3109	+
	3110	+	(iv) does not meet the established credit or investment criteria of at 13
	3111	+	least one financial institution. 14
	3112	+
	3113	+	(e) If the applicant enterprise is not a sole proprietorship, to qualify for financial 15
	3114	+	assistance under this part, at least 51% of the enterprise shall be owned by individuals who 16
	3115	+	meet the qualifications for applicants under subsection (d) of this section. 17
	3116	+
	3117	+	[5–558.] 5–539. 18
	3118	+
	3119	+	The liability of the State and of the [Authority] DEPARTMENT in providing equity 19
	3120	+	participation financing is limited to investments under the Program. 20
	3121	+
	3122	+	[5–559. 21
	3123	+
	3124	+	(a) This section applies to financing provided under the Program during fiscal 22
	3125	+	years 2021 and 2022 for the purpose of relieving the adverse effects of the coronavirus 23
	3126	+	pandemic. 24
	3127	+
	3128	+	(b) The Authority may convert to a grant up to $50,000 of the financing described 25
	3129	+	under subsection (a) of this section that is provided to a small business.] 26
	3130	+
	3131	+	5–540. RESERVED. 27
	3132	+
	3133	+	5–541. RESERVED. 28
	3134	+
	3135	+	Part VI. Small Business Surety Bond Program. 29
	3136	+
	3137	+	[5–561.] 5–542. 30
	3138	+	66 SENATE BILL 427
	3139	+
	3140	+
	3141	+	(a) In this part the following words have the meanings indicated. 1
	3142	+
	3143	+	(b) [“Fund” means the Small Business Surety Bond Fund. 2
	3144	+
	3145	+	(c)] “Principal” means a small business entity that has assets, income, or 3
	3146	+	employees that do not exceed limits that the [Authority] DEPARTMENT sets by regulation. 4
	3147	+
	3148	+	[(d)] (C) “Program” means the Small Business Surety Bond Program. 5
	3149	+
	3150	+	[5–562.] 5–543. 6
	3151	+
	3152	+	There is a Small Business Surety Bond [Fund] PROGRAM WITHIN THE FUND. 7
	3153	+
	3154	+	[5–563. 8
	3155	+
	3156	+	(a) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 9
	3157	+	under § 7–302 of the State Finance and Procurement Article. 10
	3158	+
	3159	+	(2) The Treasurer shall hold the Fund separately, and the Comptroller 11
	3160	+	shall account for the Fund. 12
	3161	+
	3162	+	(b) (1) The Treasurer shall invest the money of the Fund in the same manner 13
	3163	+	as other State money may be invested. 14
	3164	+
	3165	+	(2) Any investment earnings of the Fund shall be credited to the Fund.] 15
	3166	+
	3167	+	[5–564. 16
	3168	+
	3169	+	The Fund consists of: 17
	3170	+
	3171	+	(1) money the State appropriates to the Fund; 18
	3172	+
	3173	+	(2) premiums, fees, and any other amounts the Authority receives with 19
	3174	+	respect to bonding assistance it provides; 20
	3175	+
	3176	+	(3) proceeds the Authority designates from the sale, lease, or other 21
	3177	+	disposition of property or contracts the Authority holds or acquires; and 22
	3178	+
	3179	+	(4) any other money available under the Program.] 23
	3180	+
	3181	+	[5–565. 24
	3182	+
	3183	+	The Fund shall be used: 25
	3184	+
	3185	+	(1) for the purposes described in the Program; and 26
	3186	+	SENATE BILL 427 67
	3187	+
	3188	+
	3189	+	(2) to pay expenses of the Authority in administering the Program.] 1
	3190	+
	3191	+	[5–566.] 5–544. 2
	3192	+
	3193	+	In administering the Program, the [Authority] DEPARTMENT may: 3
	3194	+
	3195	+	(1) use the services of other governmental units; 4
	3196	+
	3197	+	(2) contract for and accept loans and grants from the federal government, 5
	3198	+	the State government, or a local government and their units; and 6
	3199	+
	3200	+	(3) on the terms and conditions it considers advisable: 7
	3201	+
	3202	+	(i) acquire, manage, operate, dispose of, or otherwise deal with 8
	3203	+	property; 9
	3204	+
	3205	+	(ii) take assignments of rentals and leases; and 10
	3206	+
	3207	+	(iii) make contracts, leases, agreements, and arrangements that are 11
	3208	+	necessary or incidental to the performance of its duties. 12
	3209	+
	3210	+	[5–567.] 5–545. 13
	3211	+
	3212	+	The [Authority] DEPARTMENT may: 14
	3213	+
	3214	+	(1) prescribe or approve the form of and terms and conditions in 15
	3215	+	applications, guaranty agreements, or any other documents entered into by the [Authority] 16
	3216	+	DEPARTMENT , principals, or sureties under the Program; 17
	3217	+
	3218	+	(2) acquire or take assignments of documents executed, obtained, or 18
	3219	+	delivered in connection with any assistance the [Authority] DEPARTMENT provides under 19
	3220	+	the Program; 20
	3221	+
	3222	+	(3) set and collect premiums, fees, charges, costs, and expenses in 21
	3223	+	connection with any assistance the [Authority] DEPARTMENT provides under the 22
	3224	+	Program; 23
	3225	+
	3226	+	(4) adopt regulations to carry out the Program; and 24
	3227	+
	3228	+	(5) do anything necessary or convenient to carry out its powers and the 25
	3229	+	purposes of the Program. 26
	3230	+
	3231	+	[5–568.] 5–546. 27
	3232	+
	3233	+	(a) The [Authority] DEPARTMENT may guarantee a surety up to the lesser of 28
	3234	+	90% or [$2,250,000] $3,000,000 of its loss under a bid bond, payment bond, or performance 29 68 SENATE BILL 427
	3235	+
	3236	+
	3237	+	bond on a contract [financed by the federal government, a state government, a local 1
	3238	+	government, a private entity, or a utility that the Public Service Commission regulates]. 2
	3239	+
	3240	+	(b) The term of a guaranty under this part may not exceed the contract term, 3
2758	3241		including: 4
2759	3242
2760		-	(i) a current balance sheet; 5
2761		-
2762		-	(ii) a profit and loss statement; and 6
2763		-
2764		-	(iii) credit references; 7
2765		-
2766		-	(7) a proposed disbursement schedule; 8
2767		-
2768		-	(8) a proposed amortization schedule; 9
2769		-
2770		-	(9) a detailed description of the applicant’s experience in the trade or 10
2771		-	business for which the loan and guarantee are requested; 11
2772		-
2773		-	(10) information that shows that the applicant satisfies the requirements of 12
2774		-	§ 5–541 of this subtitle; and 13
2775		-
2776		-	(11) any other relevant information that the Authority requests.] 14
2777		-
2778		-	[(c)] (B) The [Authority] DEPARTMENT may require an applicant to provide an 15
2779		-	audit report and balance sheet certified by an independent certified public accountant in 16
2780		-	accordance with generally accepted accounting principles before the [Authority] 17
2781		-	DEPARTMENT approves or denies the application. 18
2782		-
2783		-	[5–543.] 5–527. 5–526. 19
2784		-
2785		-	A guaranty shall contain terms and conditions that the [Authority] DEPARTMENT 20
2786		-	determines to be appropriate. 21
2787		-
2788		-	[5–544. 22
2789		-
2790		-	The Treasurer shall report each year to the Authority on: 23
2791		-
2792		-	(1) the status of the money invested under § 5–537 of this subtitle; 24
2793		-
2794		-	(2) the market value of the assets in the Fund as of the date of the report; 25
2795		-	and 26
2796		-
2797		-	(3) the interest received from investments during the period covered by the 27
2798		-	report.] 28 SENATE BILL 427 59
2799		-
2800		-
2801		-
2802		-	[5–545.] 5–528. 5–527. 1
2803		-
2804		-	(a) A person may not knowingly make or cause to be made a false statement or 2
2805		-	report in an application or document submitted to the [Authority] DEPARTMENT under 3
2806		-	this part. 4
2807		-
2808		-	(b) A person may not knowingly make or cause to be made a false statement or 5
2809		-	report to influence an action of the [Authority] DEPARTMENT under this part: 6
2810		-
2811		-	(1) on an application for financial assistance; or 7
2812		-
2813		-	(2) affecting financial assistance whether or not the assistance has already 8
2814		-	been extended. 9
2815		-
2816		-	(c) A person who violates this section is guilty of a misdemeanor and on conviction 10
2817		-	is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both. 11
2818		-
2819		-	[5–546.] 5–529. 5–528. 12
2820		-
2821		-	If an applicant or financial institution violates any provision of the loan documents 13
2822		-	or ceases to meet the requirements of this part, on reasonable notice to the applicant or 14
2823		-	financial institution, the [Authority] DEPARTMENT may: 15
2824		-
2825		-	(1) withhold from the applicant further loan payments until the applicant 16
2826		-	complies with the documents or requirements; 17
2827		-
2828		-	(2) withhold from the financial institution further interest subsidy 18
2829		-	payments until the financial institution complies with the loan documents or requirements; 19
2830		-	and 20
2831		-
2832		-	(3) exercise any other remedy for which the loan documents provide. 21
2833		-
2834		-	5–530. 5–529. RESERVED. 22
2835		-
2836		-	5–531. 5–530. RESERVED. 23
2837		-
2838		-	Part V. Equity Participation Investment Program. 24
2839		-
2840		-	[5–549.] 5–532. 5–531. 25
2841		-
2842		-	(a) In this part the following words have the meanings indicated. 26
2843		-
2844		-	(b) (1) “Enterprise” means a business entity proposing to carry on a business 27
2845		-	in the State that meets the requirements of [§ 5–526] § 5–515 § 5–514 of this subtitle. 28
2846		-	60 SENATE BILL 427
2847		-
2848		-
2849		-	(2) “Enterprise” includes: 1
2850		-
2851		-	(i) a sole proprietorship; 2
2852		-
2853		-	(ii) a partnership; 3
2854		-
2855		-	(III) A LIMITED LIABILITY CORPORATION ; 4
2856		-
2857		-	[(iii)] (IV) a limited partnership; 5
2858		-
2859		-	[(iv)] (V) a corporation; or 6
2860		-
2861		-	[(v)] (VI) a joint venture. 7
2862		-
2863		-	(c) “Equity participation financing” includes investment or guaranty of 8
2864		-	investment in an enterprise. 9
2865		-
2866		-	(d) “Existing business” means a business whose board of directors or owners 10
2867		-	approve the sale of the business to an enterprise receiving equity participation financing. 11
2868		-
2869		-	(e) [“Fund” means the Equity Participation Investment Program Fund. 12
2870		-
2871		-	(f)] “Program” means the Equity Participation Investment Program. 13
2872		-
2873		-	[(g)] (F) “Qualified security” means: 14
2874		-
2875		-	(1) a note, bond, debenture, or other evidence of indebtedness; 15
2876		-
2877		-	(2) stock or other form of equity participation; 16
2878		-
2879		-	(3) a certificate of interest or participation in a profit–sharing agreement; 17
2880		-
2881		-	(4) an investment contract; 18
2882		-
2883		-	(5) a certificate of deposit for a security; 19
2884		-
2885		-	(6) a certificate of interest or participation in a patent or patent application 20
2886		-	or in royalty or other payments under a patent or patent application; or 21
2887		-
2888		-	(7) an interest or instrument commonly known as a “security” or a 22
2889		-	certificate for, receipt for, guaranty of, or option, warrant, or right to subscribe to or 23
2890		-	purchase a qualified security. 24
2891		-
2892		-	[(h)] (G) “Small business” means a business that is classified as a small business 25
2893		-	under the U.S. Small Business Administration size standards. 26
2894		-	SENATE BILL 427 61
2895		-
2896		-
2897		-	[5–550.] 5–533. 5–532. 1
2898		-
2899		-	(a) The General Assembly finds that: 2
2900		-
2901		-	(1) small businesses have proven to be a fast growing and reliable form of 3
2902		-	successful business expansion and successful new business creation; 4
2903		-
2904		-	(2) small businesses play a major role in the economy of the State and have 5
2905		-	been a continuing source of increasing tax revenues and job opportunities; 6
2906		-
2907		-	(3) the growth of small businesses should be encouraged and should be an 7
2908		-	integral part of the State’s economic development effort; 8
2909		-
2910		-	(4) socially or economically disadvantaged individuals often lack adequate 9
2911		-	capital and are unable to obtain financing from financial institutions or venture capital 10
2912		-	firms to begin and develop a small business, or to purchase an existing business; and 11
2913		-
2914		-	(5) promoting the creation and viability of small businesses and the 12
2915		-	purchase of existing businesses by socially or economically disadvantaged individuals is in 13
2916		-	the public interest. 14
2917		-
2918		-	(b) The purposes of the Equity Participation Investment Program are to: 15
2919		-
2920		-	(1) encourage and help socially or economically disadvantaged individuals 16
2921		-	to create and develop small businesses and acquire existing businesses in the State; and 17
2922		-
2923		-	(2) assist small businesses that, because they do not meet the established 18
2924		-	credit criteria of financial institutions, cannot obtain adequate business financing on 19
2925		-	reasonable terms through normal financing channels. 20
2926		-
2927		-	[5–551.] 5–534. 5–533. 21
2928		-
2929		-	There is an Equity Participation Investment Program in the [Department] FUND. 22
2930		-
2931		-	[5–552. 23
2932		-
2933		-	The Authority shall administer the Program.] 24
2934		-
2935		-	[5–553.] 5–535. 5–534. 25
2936		-
2937		-	The [Authority] DEPARTMENT may: 26
2938		-
2939		-	(1) provide equity participation financing to help socially or economically 27
2940		-	disadvantaged individuals in the State create and develop small businesses and acquire 28
2941		-	existing businesses; 29
2942		-	62 SENATE BILL 427
2943		-
2944		-
2945		-	(2) buy, hold, and sell qualified securities; 1
2946		-
2947		-	(3) prepare, publish, and distribute technical studies, reports, and other 2
2948		-	materials with or without charge; and 3
2949		-
2950		-	(4) provide and pay for advisory services and technical assistance that are 4
2951		-	necessary or desirable to carry out the Program. 5
2952		-
2953		-	[5–554. 6
2954		-
2955		-	There is an Equity Participation Investment Program Fund.] 7
2956		-
2957		-	[5–555.] 5–536. 5–535. 8
2958		-
2959		-	[(a) The Authority shall administer the Fund. 9
2960		-
2961		-	(b) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 10
2962		-	under § 7–302 of the State Finance and Procurement Article. 11
2963		-
2964		-	(2) The Treasurer shall hold the Fund separately, and the Comptroller 12
2965		-	shall account for the Fund. 13
2966		-
2967		-	(c) The Fund consists of: 14
2968		-
2969		-	(1) money drawn from the Small Business Development Guaranty Fund 15
2970		-	established under Part IV of this subtitle; 16
2971		-
2972		-	(2) money the State appropriates to the Fund; 17
2973		-
2974		-	(3) money made available to the Fund through federal programs or private 18
2975		-	contributions; 19
2976		-
2977		-	(4) proceeds from the sale, disposition, lease, or rental by the Authority of 20
2978		-	collateral related to equity participation financing; 21
2979		-
2980		-	(5) premiums, fees, royalties, and repayments of principal, interest, and 22
2981		-	investments paid by and on behalf of enterprises to the Authority under the terms of equity 23
2982		-	participation financing; and 24
2983		-
2984		-	(6) any other money made available under the Program. 25
2985		-
2986		-	(d)] The [Authority] DEPARTMENT shall use the Fund to: 26
2987		-
2988		-	(1) purchase qualified securities that an enterprise issues to provide equity 27
2989		-	participation financing as the Program allows; 28
2990		-	SENATE BILL 427 63
2991		-
2992		-
2993		-	(2) provide guaranties of investments to expand the capital resources of 1
2994		-	enterprises; 2
2995		-
2996		-	(3) purchase advisory services and technical assistance consistent with the 3
2997		-	Program; 4
2998		-
2999		-	(4) purchase securities in which a fiduciary of the State may lawfully 5
3000		-	invest; 6
3001		-
3002		-	(5) provide equity participation financing as the Program allows; and 7
3003		-
3004		-	(6) pay for administrative, legal, and actuarial services that relate to the 8
3005		-	Program. 9
3006		-
3007		-	[(e) The Fund shall be self–sustaining and shall achieve investment returns on its 10
3008		-	portfolio in the form of: 11
3009		-
3010		-	(1) royalties from enterprises in amounts to be determined by the 12
3011		-	Authority; and 13
3012		-
3013		-	(2) interest payments from any debt securities. 14
3014		-
3015		-	(f) As needed for the Program, the Authority may withdraw from time to time up 15
3016		-	to a total of $2,000,000 from the Small Business Development Guaranty Fund and deposit 16
3017		-	the withdrawal into the Fund. 17
3018		-
3019		-	(g) (1) The Treasurer shall invest the money of the Fund in the same manner 18
3020		-	as other State money may be invested. 19
3021		-
3022		-	(2) Any investment earnings of the Fund shall be paid into the Fund. 20
3023		-
3024		-	(h) In accordance with § 2.5–109 of this article, the Authority shall submit a 21
3025		-	report on the Program.] 22
3026		-
3027		-	[5–556.] 5–537. 5–536. 23
3028		-
3029		-	[(a)] The [Authority] DEPARTMENT may provide equity participation financing 24
3030		-	under the Program only after the enterprise submits an application [that contains a 25
3031		-	business plan that meets the requirements of subsection (b) of this section] ON THE FORM 26
3032		-	THAT THE DEPARTMENT PROVIDES W ITH THE INFORMATION THE DEPARTMENT 27
3033		-	REQUIRES. 28
3034		-
3035		-	[(b) The business plan of an enterprise shall include: 29
3036		-
3037		-	(1) a description of the small business or existing business and its 30
3038		-	management, product, and market; 31 64 SENATE BILL 427
3039		-
3040		-
3041		-
3042		-	(2) a statement of the amount, immediacy of need, and projected use of the 1
3043		-	capital required; 2
3044		-
3045		-	(3) a statement of the potential economic impact of the purchase; 3
3046		-
3047		-	(4) information that relates to the satisfaction of the applicant’s 4
3048		-	requirements of § 5–557(d) and (e) of this subtitle; and 5
3049		-
3050		-	(5) any other information the Authority requires.] 6
3051		-
3052		-	[5–557.] 5–538. 5–537. 7
3053		-
3054		-	(a) (1) Under the Program the [Authority] DEPARTMENT may not: 8
3055		-
3056		-	(i) own securities representing more than 49% of the voting stock of 9
3057		-	a small business or own an interest greater than 49% in a small business; or 10
3058		-
3059		-	(ii) own securities representing more than 49% of the voting stock of 11
3060		-	an enterprise acquiring an existing business or own an interest greater than 49% in an 12
3061		-	enterprise acquiring an existing business. 13
3062		-
3063		-	(2) The amount of the [Authority’s] DEPARTMENT ’S equity participation 14
3064		-	financing in an enterprise may not exceed $2,000,000. 15
3065		-
3066		-	(3) Before providing equity participation financing, the [Authority] 16
3067		-	DEPARTMENT shall find that there is a reasonable probability that the [Authority] 17
3068		-	DEPARTMENT will recover its initial investment and an adequate return on investment 18
3069		-	from the equity participation financing. 19
3070		-
3071		-	(4) The [Authority’s] DEPARTMENT ’S investment shall be recoverable 20
3072		-	within 7 years after the equity participation financing. 21
3073		-
3074		-	(5) The [Authority’s] DEPARTMENT ’S recovery shall be the greater of: 22
3075		-
3076		-	(i) the current value of the percentage of the equity investment in 23
3077		-	the enterprise; or 24
3078		-
3079		-	(ii) the amount of the initial investment in the enterprise. 25
3080		-
3081		-	(6) If there is a dispute between the borrower and the [Authority] 26
3082		-	DEPARTMENT as to the value of the business entity at the time of recovery, the value shall 27
3083		-	be determined after obtaining at least one independent appraisal of the value from an 28
3084		-	appraiser selected from a list of at least three appraisers supplied by the [Authority] 29
3085		-	DEPARTMENT . 30
3086		-	SENATE BILL 427 65
3087		-
3088		-
3089		-	(b) When an enterprise applies to the [Authority] DEPARTMENT for equity 1
3090		-	participation financing to acquire an existing business, an enterprise or its principals shall 2
3091		-	have: 3
3092		-
3093		-	(1) an equity investment equal to at least 5% of the total cost of acquisition; 4
3094		-	and 5
3095		-
3096		-	(2) at least 3 years of successful experience with demonstrated 6
3097		-	achievements and management responsibilities. 7
3098		-
3099		-	(c) The [Authority] DEPARTMENT may provide equity participation financing 8
3100		-	for the acquisition of an existing business if the existing business: 9
3101		-
3102		-	(1) has been in existence for at least 5 years; 10
3103		-
3104		-	(2) has been profitable for at least 2 of the previous 3 years; 11
3105		-
3106		-	(3) has sufficient cash flow to service the debt and ensure adequate return 12
3107		-	of the [Authority’s] DEPARTMENT ’S investment; 13
3108		-
3109		-	(4) has the capacity for growth and job creation; 14
3110		-
3111		-	(5) has its principal place of business in the State; and 15
3112		-
3113		-	(6) has a strong customer base. 16
3114		-
3115		-	(d) If the applicant enterprise is a sole proprietorship, to qualify for financial 17
3116		-	assistance under this part, the applicant shall satisfy the [Authority] DEPARTMENT that: 18
3117		-
3118		-	(1) the applicant is of good moral character; 19
3119		-
3120		-	(2) the applicant has a reputation for financial responsibility, as 20
3121		-	determined from creditors, employers, and other individuals who have personal knowledge 21
3122		-	of the applicant; 22
3123		-
3124		-	(3) the applicant is a resident of the State or the principal place of business 23
3125		-	of the applicant is in the State; and 24
3126		-
3127		-	(4) the applicant is unable to obtain adequate business financing on 25
3128		-	reasonable terms through normal lending channels because the applicant: 26
3129		-
3130		-	(i) belongs to a group that historically has been deprived of access 27
3131		-	to normal economic or financial resources [because of race, color, creed, sex, religion, or 28
3132		-	national origin]; 29
3133		-	66 SENATE BILL 427
3134		-
3135		-
3136		-	(ii) has an identifiable physical handicap that severely limits the 1
3137		-	ability of the applicant to obtain financial assistance, but that does not limit the ability of 2
3138		-	the applicant to perform the contract or other activity for which the applicant would be 3
3139		-	receiving financial assistance; 4
3140		-
3141		-	(iii) has any other social or economic impediment that is beyond the 5
3142		-	control of the applicant, but that does not limit the ability of the applicant to perform the 6
3143		-	contract or other activity for which the applicant would be receiving financial assistance, 7
3144		-	including: 8
3145		-
3146		-	1. the lack of formal education or financial capacity; or 9
3147		-
3148		-	2. geographical or regional economic distress; or 10
3149		-
3150		-	(iv) does not meet the established credit or investment criteria of at 11
3151		-	least one financial institution. 12
3152		-
3153		-	(e) If the applicant enterprise is not a sole proprietorship, to qualify for financial 13
3154		-	assistance under this part, at least 51% of the enterprise shall be owned by individuals who 14
3155		-	meet the qualifications for applicants under subsection (d) of this section. 15
3156		-
3157		-	[5–558.] 5–539. 5–538. 16
3158		-
3159		-	The liability of the State and of the [Authority] DEPARTMENT in providing equity 17
3160		-	participation financing is limited to investments under the Program. 18
3161		-
3162		-	[5–559. 19
3163		-
3164		-	(a) This section applies to financing provided under the Program during fiscal 20
3165		-	years 2021 and 2022 for the purpose of relieving the adverse effects of the coronavirus 21
3166		-	pandemic. 22
3167		-
3168		-	(b) The Authority may convert to a grant up to $50,000 of the financing described 23
3169		-	under subsection (a) of this section that is provided to a small business.] 24
3170		-
3171		-	5–540. 5–539. RESERVED. 25
3172		-
3173		-	5–541. 5–540. RESERVED. 26
3174		-
3175		-	Part VI. Small Business Surety Bond Program. 27
3176		-
3177		-	[5–561.] 5–542. 5–541. 28
3178		-
3179		-	(a) In this part the following words have the meanings indicated. 29
3180		-
3181		-	(b) [“Fund” means the Small Business Surety Bond Fund. 30 SENATE BILL 427 67
3182		-
3183		-
3184		-
3185		-	(c)] “Principal” means a small business entity that has assets, income, or 1
3186		-	employees that do not exceed limits that the [Authority] DEPARTMENT sets by regulation. 2
3187		-
3188		-	[(d)] (C) “Program” means the Small Business Surety Bond Program. 3
3189		-
3190		-	[5–562.] 5–543. 5–542. 4
3191		-
3192		-	There is a Small Business Surety Bond [Fund] PROGRAM WITHIN THE FUND. 5
3193		-
3194		-	[5–563. 6
3195		-
3196		-	(a) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 7
3197		-	under § 7–302 of the State Finance and Procurement Article. 8
3198		-
3199		-	(2) The Treasurer shall hold the Fund separately, and the Comptroller 9
3200		-	shall account for the Fund. 10
3201		-
3202		-	(b) (1) The Treasurer shall invest the money of the Fund in the same manner 11
3203		-	as other State money may be invested. 12
3204		-
3205		-	(2) Any investment earnings of the Fund shall be credited to the Fund.] 13
3206		-
3207		-	[5–564. 14
3208		-
3209		-	The Fund consists of: 15
3210		-
3211		-	(1) money the State appropriates to the Fund; 16
3212		-
3213		-	(2) premiums, fees, and any other amounts the Authority receives with 17
3214		-	respect to bonding assistance it provides; 18
3215		-
3216		-	(3) proceeds the Authority designates from the sale, lease, or other 19
3217		-	disposition of property or contracts the Authority holds or acquires; and 20
3218		-
3219		-	(4) any other money available under the Program.] 21
3220		-
3221		-	[5–565. 22
3222		-
3223		-	The Fund shall be used: 23
3224		-
3225		-	(1) for the purposes described in the Program; and 24
3226		-
3227		-	(2) to pay expenses of the Authority in administering the Program.] 25
3228		-
3229		-	[5–566.] 5–544. 5–543. 26 68 SENATE BILL 427
3230		-
3231		-
3232		-
3233		-	In administering the Program, the [Authority] DEPARTMENT may: 1
3234		-
3235		-	(1) use the services of other governmental units; 2
3236		-
3237		-	(2) contract for and accept loans and grants from the federal government, 3
3238		-	the State government, or a local government and their units; and 4
3239		-
3240		-	(3) on the terms and conditions it considers advisable: 5
3241		-
3242		-	(i) acquire, manage, operate, dispose of, or otherwise deal with 6
3243		-	property; 7
3244		-
3245		-	(ii) take assignments of rentals and leases; and 8
3246		-
3247		-	(iii) make contracts, leases, agreements, and arrangements that are 9
3248		-	necessary or incidental to the performance of its duties. 10
3249		-
3250		-	[5–567.] 5–545. 5–544. 11
3251		-
3252		-	The [Authority] DEPARTMENT may: 12
3253		-
3254		-	(1) prescribe or approve the form of and terms and conditions in 13
3255		-	applications, guaranty agreements, or any other documents entered into by the [Authority] 14
3256		-	DEPARTMENT , principals, or sureties under the Program; 15
3257		-
3258		-	(2) acquire or take assignments of documents executed, obtained, or 16
3259		-	delivered in connection with any assistance the [Authority] DEPARTMENT provides under 17
3260		-	the Program; 18
3261		-
3262		-	(3) set and collect premiums, fees, charges, costs, and expenses in 19
3263		-	connection with any assistance the [Authority] DEPARTMENT provides under the 20
3264		-	Program; 21
3265		-
3266		-	(4) adopt regulations to carry out the Program; and 22
3267		-
3268		-	(5) do anything necessary or convenient to carry out its powers and the 23
3269		-	purposes of the Program. 24
3270		-
3271		-	[5–568.] 5–546. 5–545. 25
3272		-
3273		-	(a) The [Authority] DEPARTMENT may guarantee a surety up to the lesser of 26
3274		-	90% or [$2,250,000] $3,000,000 of its loss under a bid bond, payment bond, or performance 27
3275		-	bond on a contract [financed by the federal government, a state government, a local 28
3276		-	government, a private entity, or a utility that the Public Service Commission regulates]. 29
	3243	+	(1) the maintenance or warranty period required by the contract; and 5
	3244	+
	3245	+	(2) the period during which the surety may be liable for latent defects. 6
	3246	+
	3247	+	(c) The [Authority] DEPARTMENT may vary the terms and conditions of a 7
	3248	+	guaranty based on: 8
	3249	+
	3250	+	(1) the [Authority’s] DEPARTMENT ’S history of experience with a surety; 9
	3251	+	and 10
	3252	+
	3253	+	(2) any other factor the [Authority] DEPARTMENT considers relevant. 11
	3254	+
	3255	+	[5–569.] 5–547. 12
	3256	+
	3257	+	(a) The [Authority] DEPARTMENT may execute and perform a bid bond, 13
	3258	+	performance bond, and payment bond as a surety for the benefit of a principal in connection 14
	3259	+	with a contract [financed by the federal government or a state government, a local 15
	3260	+	government, a private entity, or a utility regulated by the Public Service Commission]. 16
	3261	+
	3262	+	(b) (1) This subsection does not apply if the sources of funding for the bonds 17
	3263	+	are grants. 18
	3264	+
	3265	+	(2) The bonds may not exceed [$2,500,000] $5,000,000 each. 19
	3266	+
	3267	+	(c) Bonds are subject to the approval of the [Authority] DEPARTMENT based on 20
	3268	+	the bond worthiness of the principal. 21
	3269	+
	3270	+	[5–570.] 5–548. 22
	3271	+
	3272	+	(a) The [Authority] DEPARTMENT may only approve a guaranty or a bond under 23
	3273	+	this part if the [Authority] DEPARTMENT determines that the contract, for which a bond 24
	3274	+	is sought to be guaranteed or issued, will have a substantial economic impact. 25
	3275	+
	3276	+	(b) To determine the economic impact of a contract, the [Authority] 26
	3277	+	DEPARTMENT may consider: 27
	3278	+
	3279	+	(1) the amount of the guaranty obligation; 28
	3280	+
	3281	+	(2) the terms of the bond to be guaranteed; 29
3277	3282		SENATE BILL 427 69
3278	3283
3279	3284
3280		-	(b) The term of a guaranty under this part may not exceed the contract term, 1
3281		-	including: 2
3282		-
3283		-	(1) the maintenance or warranty period required by the contract; and 3
3284		-
3285		-	(2) the period during which the surety may be liable for latent defects. 4
3286		-
3287		-	(c) The [Authority] DEPARTMENT may vary the terms and conditions of a 5
3288		-	guaranty based on: 6
3289		-
3290		-	(1) the [Authority’s] DEPARTMENT ’S history of experience with a surety; 7
3291		-	and 8
3292		-
3293		-	(2) any other factor the [Authority] DEPARTMENT considers relevant. 9
3294		-
3295		-	[5–569.] 5–547. 5–546. 10
3296		-
3297		-	(a) The [Authority] DEPARTMENT may execute and perform a bid bond, 11
3298		-	performance bond, and payment bond as a surety for the benefit of a principal in connection 12
3299		-	with a contract [financed by the federal government or a state government, a local 13
3300		-	government, a private entity, or a utility regulated by the Public Service Commission]. 14
3301		-
3302		-	(b) (1) This subsection does not apply if the sources of funding for the bonds 15
3303		-	are grants. 16
3304		-
3305		-	(2) The bonds may not exceed [$2,500,000] $5,000,000 each. 17
3306		-
3307		-	(c) Bonds are subject to the approval of the [Authority] DEPARTMENT based on 18
3308		-	the bond worthiness of the principal. 19
3309		-
3310		-	[5–570.] 5–548. 5–547. 20
3311		-
3312		-	(a) The [Authority] DEPARTMENT may only approve a guaranty or a bond under 21
3313		-	this part if the [Authority] DEPARTMENT determines that the contract, for which a bond 22
3314		-	is sought to be guaranteed or issued, will have a substantial economic impact. 23
3315		-
3316		-	(b) To determine the economic impact of a contract, the [Authority] 24
3317		-	DEPARTMENT may consider: 25
3318		-
3319		-	(1) the amount of the guaranty obligation; 26
3320		-
3321		-	(2) the terms of the bond to be guaranteed; 27
3322		-
3323		-	(3) the number of new jobs that the contract to be bonded will create; and 28
3324		-	70 SENATE BILL 427
3325		-
3326		-
3327		-	(4) any other factor that the [Authority] DEPARTMENT considers 1
3328		-	relevant. 2
3329		-
3330		-	[5–571.] 5–549. 5–548. 3
3331		-
3332		-	The [Authority] DEPARTMENT may establish a surety bonding line to issue or 4
3333		-	guarantee multiple bonds to a principal within preapproved terms, conditions, and 5
3334		-	limitations. 6
3335		-
3336		-	[5–572.] 5–550. 5–549. 7
3337		-
3338		-	(a) To qualify for financial assistance under this part the principal shall satisfy 8
3339		-	the [Authority] DEPARTMENT that the principal: 9
3340		-
3341		-	(1) is of good moral character or is owned by individuals of good moral 10
3342		-	character; 11
3343		-
3344		-	(2) as determined from creditors, employers, and other individuals who 12
3345		-	have personal knowledge, is an individual with a reputation for financial responsibility or 13
3346		-	is owned by individuals, a majority of whom have a reputation for financial responsibility; 14
3347		-
3348		-	(3) is a resident of the State or the principal place of business of the 15
3349		-	applicant is in the State; and 16
3350		-
3351		-	(4) is unable to obtain adequate bonding on reasonable terms through 17
3352		-	normal channels. 18
3353		-
3354		-	(b) To qualify for financial assistance under this part the principal shall certify to 19
3355		-	the [Authority] DEPARTMENT , and the [Authority] DEPARTMENT shall be satisfied, 20
3356		-	that: 21
3357		-
3358		-	(1) a bond is required to bid on a contract or to serve as prime contractor 22
3359		-	or subcontractor; 23
3360		-
3361		-	(2) a bond cannot be obtained on reasonable terms and conditions without 24
3362		-	assistance from the Program; and 25
3363		-
3364		-	(3) the principal will not subcontract more than 75% of the monetary value 26
3365		-	of the contract. 27
3366		-
3367		-	[5–573.] 5–551. 5–550. 28
3368		-
3369		-	(a) To apply for financial assistance from the Program under this part, a principal 29
3370		-	and, if applicable, a surety shall submit to the [Authority] DEPARTMENT an application 30
3371		-	on the form that the [Authority] DEPARTMENT provides WITH THE INFORMATION THE 31
3372		-	DEPARTMENT REQUIRES. 32 SENATE BILL 427 71
3373		-
3374		-
3375		-
3376		-	(b) [The application shall include: 1
3377		-
3378		-	(1) a detailed description of the project; 2
3379		-
3380		-	(2) an itemization of known and estimated costs; 3
3381		-
3382		-	(3) the total investment required to perform the contract; 4
3383		-
3384		-	(4) the working capital available to the principal; 5
3385		-
3386		-	(5) the bonding assistance sought; 6
3387		-
3388		-	(6) information that demonstrates the inability of the principal to obtain 7
3389		-	adequate bonding on reasonable terms and conditions through normal channels without 8
3390		-	assistance from the Program; 9
3391		-
3392		-	(7) a current balance sheet, a profit and loss statement, and credit 10
3393		-	references about the financial status of the principal; 11
3394		-
3395		-	(8) a schedule of the status of existing and pending contracts; and 12
3396		-
3397		-	(9) any other relevant information the Authority requests. 13
3398		-
3399		-	(c)] The [Authority] DEPARTMENT may require an applicant to provide an 14
3400		-	audited balance sheet before the [Authority] DEPARTMENT approves or denies the 15
3401		-	application. 16
3402		-
3403		-	[(d)] (C) The [Authority] DEPARTMENT may not approve a guaranty or bond 17
3404		-	under this part for a principal that has defaulted on a loan or guaranty from the [Authority] 18
3405		-	DEPARTMENT unless: 19
3406		-
3407		-	(1) 2 years have passed since the time of the default; and 20
3408		-
3409		-	(2) the principal has cured any default in any financing program 21
3410		-	administered by the Department. 22
3411		-
3412		-	[5–574.] 5–552. 5–551. 23
3413		-
3414		-	(a) In its sole discretion, the [Authority] DEPARTMENT may set: 24
3415		-
3416		-	(1) the premiums and fees for providing bonding assistance under the 25
3417		-	Program; and 26
3418		-
3419		-	(2) the terms and conditions when the premiums and fees are payable. 27
3420		-	72 SENATE BILL 427
3421		-
3422		-
3423		-	(b) The premiums and fees may vary in amount among transactions and at 1
3424		-	different stages of a transaction. 2
3425		-
3426		-	(c) A determination by the Authority on premiums and fees remains effective for 3
3427		-	as long as the bonding assistance provided by the [Authority] DEPARTMENT is in effect. 4
3428		-
3429		-	[5–575.] 5–553. 5–552. 5
3430		-
3431		-	(a) A person may not knowingly make or cause to be made a false statement or 6
3432		-	report in an application or document submitted to the [Authority] DEPARTMENT under 7
3433		-	this part. 8
3434		-
3435		-	(b) A person may not knowingly make or cause to be made a false statement or 9
3436		-	report to influence an action of the [Authority] DEPARTMENT under this part: 10
3437		-
3438		-	(1) on an application for assistance; or 11
3439		-
3440		-	(2) affecting bonding assistance whether or not the assistance has been 12
3441		-	extended. 13
3442		-
3443		-	(c) A person who violates this section is guilty of a misdemeanor and on conviction 14
3444		-	is subject to imprisonment not exceeding [6 months] 5 YEARS or a fine not exceeding 15
3445		-	[$1,000] $50,000 or both. 16
3446		-
3447		-	5–1001. 17
3448		-
3449		-	(a) In this subtitle the following words have the meanings indicated. 18
3450		-
3451		-	(b) “Fund” means the Military Personnel and Veteran–Owned Small Business 19
3452		-	No–Interest Loan Fund established under § 5–1006 of this subtitle. 20
3453		-
3454		-	[(c) “Service–disabled veteran” means a veteran with a disability that is 21
3455		-	service–connected, as defined in 38 U.S.C. § 101(16). 22
3456		-
3457		-	(d) (1) “Small business employer” means an employer who employed an 23
3458		-	average of 50 or fewer employees on business days during the calendar year preceding the 24
3459		-	determination of eligibility for a loan under this subtitle. 25
3460		-
3461		-	(2) For purposes of paragraph (1) of this subsection, all persons treated as 26
3462		-	a single employer under § 414(b), (c), (m), or (o) of the Internal Revenue Code shall be 27
3463		-	treated as a single employer under this subtitle. 28
3464		-
3465		-	(e) “Veteran–owned small business” means a small business that is at least 51% 29
3466		-	owned by a veteran as defined in 38 U.S.C. § 101(2).] 30
3467		-	SENATE BILL 427 73
	3285	+	(3) the number of new jobs that the contract to be bonded will create; and 1
	3286	+
	3287	+	(4) any other factor that the [Authority] DEPARTMENT considers 2
	3288	+	relevant. 3
	3289	+
	3290	+	[5–571.] 5–549. 4
	3291	+
	3292	+	The [Authority] DEPARTMENT may establish a surety bonding line to issue or 5
	3293	+	guarantee multiple bonds to a principal within preapproved terms, conditions, and 6
	3294	+	limitations. 7
	3295	+
	3296	+	[5–572.] 5–550. 8
	3297	+
	3298	+	(a) To qualify for financial assistance under this part the principal shall satisfy 9
	3299	+	the [Authority] DEPARTMENT that the principal: 10
	3300	+
	3301	+	(1) is of good moral character or is owned by individuals of good moral 11
	3302	+	character; 12
	3303	+
	3304	+	(2) as determined from creditors, employers, and other individuals who 13
	3305	+	have personal knowledge, is an individual with a reputation for financial responsibility or 14
	3306	+	is owned by individuals, a majority of whom have a reputation for financial responsibility; 15
	3307	+
	3308	+	(3) is a resident of the State or the principal place of business of the 16
	3309	+	applicant is in the State; and 17
	3310	+
	3311	+	(4) is unable to obtain adequate bonding on reasonable terms through 18
	3312	+	normal channels. 19
	3313	+
	3314	+	(b) To qualify for financial assistance under this part the principal shall certify to 20
	3315	+	the [Authority] DEPARTMENT , and the [Authority] DEPARTMENT shall be satisfied, 21
	3316	+	that: 22
	3317	+
	3318	+	(1) a bond is required to bid on a contract or to serve as prime contractor 23
	3319	+	or subcontractor; 24
	3320	+
	3321	+	(2) a bond cannot be obtained on reasonable terms and conditions without 25
	3322	+	assistance from the Program; and 26
	3323	+
	3324	+	(3) the principal will not subcontract more than 75% of the monetary value 27
	3325	+	of the contract. 28
	3326	+
	3327	+	[5–573.] 5–551. 29
	3328	+
	3329	+	(a) To apply for financial assistance from the Program under this part, a principal 30
	3330	+	and, if applicable, a surety shall submit to the [Authority] DEPARTMENT an application 31 70 SENATE BILL 427
	3331	+
	3332	+
	3333	+	on the form that the [Authority] DEPARTMENT provides WITH THE INFORMATION THE 1
	3334	+	DEPARTMENT REQUIRES . 2
	3335	+
	3336	+	(b) [The application shall include: 3
	3337	+
	3338	+	(1) a detailed description of the project; 4
	3339	+
	3340	+	(2) an itemization of known and estimated costs; 5
	3341	+
	3342	+	(3) the total investment required to perform the contract; 6
	3343	+
	3344	+	(4) the working capital available to the principal; 7
	3345	+
	3346	+	(5) the bonding assistance sought; 8
	3347	+
	3348	+	(6) information that demonstrates the inability of the principal to obtain 9
	3349	+	adequate bonding on reasonable terms and conditions through normal channels without 10
	3350	+	assistance from the Program; 11
	3351	+
	3352	+	(7) a current balance sheet, a profit and loss statement, and credit 12
	3353	+	references about the financial status of the principal; 13
	3354	+
	3355	+	(8) a schedule of the status of existing and pending contracts; and 14
	3356	+
	3357	+	(9) any other relevant information the Authority requests. 15
	3358	+
	3359	+	(c)] The [Authority] DEPARTMENT may require an applicant to provide an 16
	3360	+	audited balance sheet before the [Authority] DEPARTMENT approves or denies the 17
	3361	+	application. 18
	3362	+
	3363	+	[(d)] (C) The [Authority] DEPARTMENT may not approve a guaranty or bond 19
	3364	+	under this part for a principal that has defaulted on a loan or guaranty from the [Authority] 20
	3365	+	DEPARTMENT unless: 21
	3366	+
	3367	+	(1) 2 years have passed since the time of the default; and 22
	3368	+
	3369	+	(2) the principal has cured any default in any financing program 23
	3370	+	administered by the Department. 24
	3371	+
	3372	+	[5–574.] 5–552. 25
	3373	+
	3374	+	(a) In its sole discretion, the [Authority] DEPARTMENT may set: 26
	3375	+
	3376	+	(1) the premiums and fees for providing bonding assistance under the 27
	3377	+	Program; and 28
	3378	+	SENATE BILL 427 71
	3379	+
	3380	+
	3381	+	(2) the terms and conditions when the premiums and fees are payable. 1
	3382	+
	3383	+	(b) The premiums and fees may vary in amount among transactions and at 2
	3384	+	different stages of a transaction. 3
	3385	+
	3386	+	(c) A determination by the Authority on premiums and fees remains effective for 4
	3387	+	as long as the bonding assistance provided by the [Authority] DEPARTMENT is in effect. 5
	3388	+
	3389	+	[5–575.] 5–553. 6
	3390	+
	3391	+	(a) A person may not knowingly make or cause to be made a false statement or 7
	3392	+	report in an application or document submitted to the [Authority] DEPARTMENT under 8
	3393	+	this part. 9
	3394	+
	3395	+	(b) A person may not knowingly make or cause to be made a false statement or 10
	3396	+	report to influence an action of the [Authority] DEPARTMENT under this part: 11
	3397	+
	3398	+	(1) on an application for assistance; or 12
	3399	+
	3400	+	(2) affecting bonding assistance whether or not the assistance has been 13
	3401	+	extended. 14
	3402	+
	3403	+	(c) A person who violates this section is guilty of a misdemeanor and on conviction 15
	3404	+	is subject to imprisonment not exceeding [6 months] 5 YEARS or a fine not exceeding 16
	3405	+	[$1,000] $50,000 or both. 17
	3406	+
	3407	+	5–1001. 18
	3408	+
	3409	+	(a) In this subtitle the following words have the meanings indicated. 19
	3410	+
	3411	+	(b) “Fund” means the Military Personnel and Veteran–Owned Small Business 20
	3412	+	No–Interest Loan Fund established under § 5–1006 of this subtitle. 21
	3413	+
	3414	+	[(c) “Service–disabled veteran” means a veteran with a disability that is 22
	3415	+	service–connected, as defined in 38 U.S.C. § 101(16). 23
	3416	+
	3417	+	(d) (1) “Small business employer” means an employer who employed an 24
	3418	+	average of 50 or fewer employees on business days during the calendar year preceding the 25
	3419	+	determination of eligibility for a loan under this subtitle. 26
	3420	+
	3421	+	(2) For purposes of paragraph (1) of this subsection, all persons treated as 27
	3422	+	a single employer under § 414(b), (c), (m), or (o) of the Internal Revenue Code shall be 28
	3423	+	treated as a single employer under this subtitle. 29
	3424	+
	3425	+	(e) “Veteran–owned small business” means a small business that is at least 51% 30
	3426	+	owned by a veteran as defined in 38 U.S.C. § 101(2).] 31 72 SENATE BILL 427
	3427	+
3468	3428
3469	3429
3470	3430		(C) “VETERAN–OWNED SMALL BUSINESS ENTERPRISE” HAS THE MEANING 1
3471	3431		STATED IN § 14–601 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 2
3472	3432
3473	3433		5–1002. 3
3474	3434
3475	3435		(a) Subject to the availability of funds, the Department, in consultation with the 4
3476	3436		Department of Veterans and Military Families, shall establish a program to provide 5
3477	3437		no–interest loans under this subtitle to[: 6
3478	3438
3479	3439		(1) small business employers of military reservists and National Guard 7
3480	3440		personnel who are called to active duty; 8
3481	3441
3482	3442		(2) businesses owned by military reservists and National Guard personnel 9
3483	3443		who are called to active duty; 10
3484	3444
3485	3445		(3) veteran–owned small businesses; and 11
3486	3446
3487	3447		(4) businesses employing a service–disabled veteran] VETERAN–OWNED 12
3488	3448		SMALL BUSINESS ENTER PRISES AS CERTIFIED BY THE GOVERNOR’S OFFICE OF 13
3489	3449		SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS. 14
3490	3450
3491	3451		(b) [If the availability of funds is limited, in making loans under this subtitle, the 15
3492	3452		Department, in consultation with the Department of Veterans and Military Families, shall 16
3493	3453		give priority to the businesses described in subsection (a)(2) and (3) of this section. 17
3494	3454
3495	3455		(c)] In making loans under this subtitle, the Department, in consultation with the 18
3496	3456		Department of Veterans and Military Families, shall take into consideration how to 19
3497	3457		maximize the number of [veterans, military reservists, and National Guard personnel] 20
3498	3458		VETERAN–OWNED SMALL BUSINESS ENTERPRISES who would benefit from loans made 21
3499	3459		under this subtitle. 22
3500	3460
3501	3461		[5–1003. 23
3502	3462
3503	3463		Loans shall be made under this subtitle for the purposes of: 24
3504	3464
3505	3465		(1) providing financial support to: 25
3506	3466
3507	3467		(i) a business owned by a military reservist or National Guard 26
3508	3468		member who is called to active duty; or 27
3509	3469
3510	3470		(ii) a small business employer of a military reservist or National 28
3511	3471		Guard member who is called to active duty; 29
3512	3472
3513	3473		(2) making the home, motor vehicle, or place of employment of a veteran 30
3514		-	accessible to individuals with disabilities, including purchasing equipment necessary to 31 74 SENATE BILL 427
	3474	+	accessible to individuals with disabilities, including purchasing equipment necessary to 31 SENATE BILL 427 73
3515	3475
3516	3476
3517	3477		enable a business to employ a service–disabled veteran or to enable a service–disabled 1
3518	3478		veteran to operate a business; and 2
3519	3479
3520	3480		(3) defraying other necessary expenses, as determined by the Department 3
3521	3481		of Veterans and Military Families, incurred by: 4
3522	3482
3523	3483		(i) a business employing a service–disabled veteran; or 5
3524	3484
3525	3485		(ii) a veteran–owned small business.] 6
3526	3486
3527	3487		[5–1004. 7
3528	3488
3529	3489		(a) A loan made under this subtitle for the purpose of providing financial support 8
3530	3490		to a business owned by an individual who is called to active duty or to a small business 9
3531	3491		employer of an individual who is called to active duty: 10
3532	3492
3533	3493		(1) may be made at any time from the individual’s receipt of orders to 11
3534	3494		report to 6 months after the end of the individual’s active duty; and 12
3535	3495
3536	3496		(2) shall be subject to criteria for eligibility and priority established by the 13
3537	3497		Department of Veterans and Military Families, including the extent to which the individual 14
3538	3498		who is called to active duty is an essential employee of the business. 15
3539	3499
3540	3500		(b) A loan made under this subtitle for the purpose of making accessible to 16
3541	3501		individuals with disabilities the home, motor vehicle, or place of employment of a 17
3542	3502		service–disabled veteran may be made at any time.] 18
3543	3503
3544	3504		[5–1005. 19
3545	3505
3546	3506		(a) The Department shall administer the loan program authorized under this 20
3547	3507		subtitle. 21
3548	3508
3549	3509		(b) The Department of Veterans and Military Families shall establish eligibility 22
3550	3510		criteria for loans under this subtitle.] 23
3551	3511
3552	3512		[5–1006.] 5–1003. 24
3553	3513
3554	3514		(a) There is a Military Personnel and Veteran –Owned Small Business 25
3555	3515		No–Interest Loan Fund. 26
3556	3516
3557	3517		(b) The purpose of the Fund is to provide no–interest loans consistent with this 27
3558	3518		subtitle. 28
3559	3519
3560	3520		(c) The Secretary shall administer the Fund. 29
	3521	+
	3522	+	(d) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 30 74 SENATE BILL 427
	3523	+
	3524	+
	3525	+	under § 7–302 of the State Finance and Procurement Article. 1
	3526	+
	3527	+	(2) The State Treasurer shall hold the Fund separately, and the 2
	3528	+	Comptroller shall account for the Fund. 3
	3529	+
	3530	+	(3) Any investment earnings of the Fund shall be credited to the Fund. 4
	3531	+
	3532	+	(e) The Fund consists of: 5
	3533	+
	3534	+	(1) money the State appropriates to the Fund; 6
	3535	+
	3536	+	(2) money made available to the Fund through federal programs or private 7
	3537	+	contributions; 8
	3538	+
	3539	+	(3) repayments from loans provided by the Department under this subtitle; 9
	3540	+
	3541	+	(4) proceeds from the sale, disposition, lease, or rental of collateral related 10
	3542	+	to loans provided by the Department under this subtitle; and 11
	3543	+
	3544	+	(5) any other money made available to the Fund. 12
	3545	+
	3546	+	(f) The Department may use money in the Fund to provide loans to eligible 13
	3547	+	applicants under [§§ 5–1002 through 5–1004] § 5–1002 of this subtitle. 14
	3548	+
	3549	+	[5–1007. 15
	3550	+
	3551	+	(a) The Department shall adopt regulations to carry out this subtitle. 16
	3552	+
	3553	+	(b) The Department of Veterans and Military Families may adopt regulations 17
	3554	+	concerning eligibility criteria for loans under this subtitle.] 18
	3555	+
	3556	+	5–1204. 19
	3557	+
	3558	+	(a) (1) (ii) 4. If the money in the Account exceeds $1,000,000, any 20
	3559	+	money in excess of that amount shall be transferred to the [Small, Minority, and 21
	3560	+	Women–Owned Businesses] REINVEST FOR SUCCESS Account established under § 22
	3561	+	5–1501 of this title. 23
	3562	+
	3563	+	Subtitle 15. [Small, Minority, and Women–Owned Businesses] REINVEST FOR 24
	3564	+	SUCCESS Account. 25
	3565	+
	3566	+	5–1501. 26
	3567	+
	3568	+	(a) There is a [Small, Minority, and Women–Owned Businesses] REINVEST FOR 27
	3569	+	SUCCESS Account under the authority of the Department. 28
3561	3570		SENATE BILL 427 75
3562		-
3563		-
3564		-	(d) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 1
3565		-	under § 7–302 of the State Finance and Procurement Article. 2
3566		-
3567		-	(2) The State Treasurer shall hold the Fund separately, and the 3
3568		-	Comptroller shall account for the Fund. 4
3569		-
3570		-	(3) Any investment earnings of the Fund shall be credited to the Fund. 5
3571		-
3572		-	(e) The Fund consists of: 6
3573		-
3574		-	(1) money the State appropriates to the Fund; 7
3575		-
3576		-	(2) money made available to the Fund through federal programs or private 8
3577		-	contributions; 9
3578		-
3579		-	(3) repayments from loans provided by the Department under this subtitle; 10
3580		-
3581		-	(4) proceeds from the sale, disposition, lease, or rental of collateral related 11
3582		-	to loans provided by the Department under this subtitle; and 12
3583		-
3584		-	(5) any other money made available to the Fund. 13
3585		-
3586		-	(f) The Department may use money in the Fund to provide loans to eligible 14
3587		-	applicants under [§§ 5–1002 through 5–1004] § 5–1002 of this subtitle. 15
3588		-
3589		-	[5–1007. 16
3590		-
3591		-	(a) The Department shall adopt regulations to carry out this subtitle. 17
3592		-
3593		-	(b) The Department of Veterans and Military Families may adopt regulations 18
3594		-	concerning eligibility criteria for loans under this subtitle.] 19
3595		-
3596		-	5–1204. 20
3597		-
3598		-	(a) (1) (ii) 4. If the money in the Account exceeds $1,000,000, any 21
3599		-	money in excess of that amount shall be transferred to the [Small, Minority, and 22
3600		-	Women–Owned Businesses] REINVEST FOR SUCCESS Account established under § 23
3601		-	5–1501 of this title. 24
3602		-
3603		-	Subtitle 15. [Small, Minority, and Women–Owned Businesses] REINVEST FOR 25
3604		-	SUCCESS Account. 26
3605		-
3606		-	5–1501. 27
3607		-
3608		-	(a) There is a [Small, Minority, and Women–Owned Businesses] REINVEST FOR 28
3609		-	SUCCESS Account under the authority of the Department. 29 76 SENATE BILL 427
3610		-
3611	3571
3612	3572
3613	3573		5–2401. 1
3614	3574
3615	3575		(a) In this subtitle the following words have the meanings indicated. 2
3616	3576
3617	3577		(b) “Fund” means the Industry 4.0 Technology Grant Fund. 3
3618	3578
3619	3579		(c) (1) “Industry 4.0 technology” means smart hardware and software 4
3620	3580		manufacturing technologies. 5
3621	3581
3622	3582		(2) “Industry 4.0 technology” includes: 6
3623	3583
3624	3584		(i) advanced sensor integration; 7
3625	3585
3626	3586		(ii) embedded software system applications; 8
3627	3587
3628	3588		(iii) robotics and autonomous equipment that collect data; 9
3629	3589
3630	3590		(iv) enterprise resource planning (ERP) and data analytics software; 10
3631	3591
3632	3592		(v) cloud computing and cybersecurity solutions; 11
3633	3593
3634	3594		(vi) artificial intelligence (AI) for continuous improvement of 12
3635	3595		efficiency and productivity; and 13
3636	3596
3637	3597		(vii) infrastructure required to implement a qualifying technology. 14
3638	3598
3639	3599		(d) “Program” means the Industry 4.0 Technology Grant Program. 15
3640	3600
3641	3601		(e) “Program administrator” means the entity that has authority to administer 16
3642	3602		the Program. 17
3643	3603
3644	3604		(f) “SME manufacturer” means a small or medi um–sized enterprise 18
3645	3605		manufacturer. 19
3646	3606
3647	3607		5–2402. 20
3648	3608
3649	3609		(a) There is an Industry 4.0 Technology Grant Program in the Department. 21
3650	3610
3651	3611		(b) The Department may enter into a memorandum of understanding with a 22
3652	3612		State–chartered corporation under Title 10 of this article to authorize the State–chartered 23
3653	3613		corporation to administer the Program in accordance with this subtitle. 24
3654	3614
3655	3615		(c) The purpose of the Program is to assist SME manufacturers in the purchase, 25
3656	3616		implementation, and related employee training of Industry 4.0 technology and related 26
3657	3617		infrastructure in order to increase productivity, efficiency, and competitiveness in the State 27
3658		-	and national manufacturing environment. 28 ~~SENATE BILL 427 77~~
3659		-
	3618	+	and national manufacturing environment. 28
	3619	+	76 SENATE BILL 427
3660	3620
3661	3621
3662	3622		(d) To qualify for a grant under the Program, an SME manufacturer shall submit 1
3663	3623		to the Program administrator an application that demonstrates that: 2
3664	3624
3665	3625		(1) the company is a qualifying SME manufacturer; 3
3666	3626
3667	3627		(2) the company has business operations in Maryland; and 4
3668	3628
3669	3629		(3) the company has been in existence for over 1 year. 5
3670	3630
3671	3631		(e) (1) [In] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IN 6
3672	3632		awarding grants under the Program, the Program administrator shall award grants on a 7
3673	3633		competitive basis based on: 8
3674	3634
3675	3635		(i) the proposed project’s alignment with adoption of Industry 4.0 9
3676	3636		technologies; 10
3677	3637
3678	3638		(ii) the applicant’s demonstrated overall commitment to, or strategy 11
3679	3639		for, Industry 4.0 technology adoption; 12
3680	3640
3681	3641		(iii) the demonstrated positive impact of the Industry 4.0 technology 13
3682	3642		on the applicant’s business operations and competitiveness; and 14
3683	3643
3684	3644		(iv) any other information requested by the Program administrator. 15
3685	3645
3686	3646		(2) THE DEPARTMENT SHALL PRIO RITIZE AWARDING GRAN TS TO 16
3687	3647		SME MANUFACTURERS ENGAGE D IN THE SECTORS AND ACTIVITY INCLUDED ON 17
3688	3648		THE LIST ESTABLISHED BY THE DEPARTMENT IN ACCORDA NCE WITH § 2.5–106 OF 18
3689	3649		THIS ARTICLE. 19
3690	3650
3691	3651		[(2)] (3) Subject to paragraph [(3)] (4) of this subsection, the Department 20
3692	3652		shall award to an eligible SME manufacturer a grant of at least $25,000, but not exceeding 21
3693	3653		$500,000. 22
3694	3654
3695	3655		[(3)] (4) (i) An SME manufacturer that receives a grant under this 23
3696	3656		subsection shall provide matching funds in the amounts specified under this paragraph. 24
3697	3657
3698	3658		(ii) The Department shall establish a sliding scale formula for the 25
3699	3659		matching funds required by an SME manufacturer to be provided a grant under this 26
3700	3660		section, with SME manufacturers with fewer employees requiring a lesser percentage and 27
3701	3661		SME manufacturers with more employees requiring a higher percentage. 28
3702	3662
3703	3663		[(4)] (5) (i) The Department shall reserve at least 20% of the funds 29
3704	3664		available during each fiscal year for awarding grants under this subsection to SME 30
3705	3665		manufacturers that employ 50 or fewer employees. 31
	3666	+
	3667	+	(ii) If the total amount of grants applied for by SME manufacturers 32 SENATE BILL 427 77
	3668	+
	3669	+
	3670	+	that employ 50 or fewer employees is less than the amount of funds reserved under 1
	3671	+	subparagraph (i) of this paragraph during a fiscal year, the Department may utilize the 2
	3672	+	balance of the reserved funds for awarding grants under this subsection to SME 3
	3673	+	manufacturers that employ more than 50 employees. 4
	3674	+
	3675	+	(f) (1) A grant awarded under the Program may be used for projects that 5
	3676	+	directly affect manufacturing processes and focus on investments in Industry 4.0 6
	3677	+	technology commercial–ready equipment through established vendors or related 7
	3678	+	infrastructure. 8
	3679	+
	3680	+	(2) Within 1 year after receiving a grant under the Program, an SME 9
	3681	+	manufacturer shall submit to the Department a letter that: 10
	3682	+
	3683	+	(i) describes how the grant funding was used; and 11
	3684	+
	3685	+	(ii) includes any invoices related to the implementation of the 12
	3686	+	Industry 4.0 technology or related infrastructure. 13
	3687	+
	3688	+	(3) The Department may require a grant recipient that fails to fulfill the 14
	3689	+	requirements of the grant to return all or part of the grant to the Program. 15
	3690	+
	3691	+	6–601. 16
	3692	+
	3693	+	(a) In this subtitle the following words have the meanings indicated. 17
	3694	+
	3695	+	(b) “Authority” means the Maryland E–Nnovation Initiative Fund Authority 18
	3696	+	established under § 6–605 of this subtitle. 19
	3697	+
	3698	+	(C) “ELIGIBLE FIELD OF STU DY” MEANS A FIELD OF STU DY FOCUSED ON 20
	3699	+	THE PRIORITY SECTORS AND ACTIVITY INCLUDE D ON THE LIST ESTABL ISHED IN 21
	3700	+	ACCORDANCE WITH § 2.5–106 OF THIS ARTICLE. 22
	3701	+
	3702	+	[(c)] (D) “Endowment proceeds” means those investment earnings accruing to a 23
	3703	+	research endowment of a nonprofit institution of higher education and available for 24
	3704	+	expenditure by the institution in accordance with § 6–612 of this subtitle. 25
	3705	+
	3706	+	[(d)] (E) “Fund” means the Maryland E–Nnovation Initiative Fund created 26
	3707	+	under § 6–604 of this subtitle. 27
	3708	+
	3709	+	[(e)] (F) “Governing board” has the meaning stated in § 10–101 of the Education 28
	3710	+	Article. 29
	3711	+
	3712	+	[(f)] (G) “Governing body” means: 30
	3713	+
	3714	+	(1) a governing board; 31
3706	3715		78 SENATE BILL 427
3707		-
3708		-
3709		-	(ii) If the total amount of grants applied for by SME manufacturers 1
3710		-	that employ 50 or fewer employees is less than the amount of funds reserved under 2
3711		-	subparagraph (i) of this paragraph during a fiscal year, the Department may utilize the 3
3712		-	balance of the reserved funds for awarding grants under this subsection to SME 4
3713		-	manufacturers that employ more than 50 employees. 5
3714		-
3715		-	(f) (1) A grant awarded under the Program may be used for projects that 6
3716		-	directly affect manufacturing processes and focus on investments in Industry 4.0 7
3717		-	technology commercial–ready equipment through established vendors or related 8
3718		-	infrastructure. 9
3719		-
3720		-	(2) Within 1 year after receiving a grant under the Program, an SME 10
3721		-	manufacturer shall submit to the Department a letter that: 11
3722		-
3723		-	(i) describes how the grant funding was used; and 12
3724		-
3725		-	(ii) includes any invoices related to the implementation of the 13
3726		-	Industry 4.0 technology or related infrastructure. 14
3727		-
3728		-	(3) The Department may require a grant recipient that fails to fulfill the 15
3729		-	requirements of the grant to return all or part of the grant to the Program. 16
3730		-
3731		-	6–601. 17
3732		-
3733		-	(a) In this subtitle the following words have the meanings indicated. 18
3734		-
3735		-	(b) “Authority” means the Maryland E–Nnovation Initiative Fund Authority 19
3736		-	established under § 6–605 of this subtitle. 20
3737		-
3738		-	(C) “ELIGIBLE FIELD OF STU DY” MEANS A FIELD OF STU DY FOCUSED ON 21
3739		-	THE PRIORITY SECTORS AND ACTIVITY INCLUDE D ON THE LIST ESTABL ISHED IN 22
3740		-	ACCORDANCE WITH § 2.5–106 OF THIS ARTICLE. 23
3741		-
3742		-	[(c)] (D) “Endowment proceeds” means those investment earnings accruing to a 24
3743		-	research endowment of a nonprofit institution of higher education and available for 25
3744		-	expenditure by the institution in accordance with § 6–612 of this subtitle. 26
3745		-
3746		-	[(d)] (E) “Fund” means the Maryland E–Nnovation Initiative Fund created 27
3747		-	under § 6–604 of this subtitle. 28
3748		-
3749		-	[(e)] (F) “Governing board” has the meaning stated in § 10–101 of the Education 29
3750		-	Article. 30
3751		-
3752		-	[(f)] (G) “Governing body” means: 31
3753		-
3754		-	(1) a governing board; 32 SENATE BILL 427 79
3755		-
3756	3716
3757	3717
3758	3718		(2) the governing entity of a private nonprofit institution of higher 1
3759	3719		education; or 2
3760	3720
3761	3721		(3) the governing entity of a regional higher education center. 3
3762	3722
3763	3723		[(g)] (H) (1) “Nonprofit institution of higher education” means an institution 4
3764	3724		of postsecondary education located in the State, that receives State funds in the annual 5
3765	3725		operating budget and that generally limits enrollment to graduates of secondary schools 6
3766	3726		and awards degrees at either the associate, baccalaureate, or graduate level. 7
3767	3727
3768	3728		(2) “Nonprofit institution of higher education” includes public and private 8
3769	3729		nonprofit institutions of higher education located in the State. 9
3770	3730
3771	3731		[(h)] (I) “Private nonprofit institution of higher education” has the meaning 10
3772	3732		stated in § 10–101 of the Education Article. 11
3773	3733
3774	3734		[(i)] (J) “Program” means the Maryland E–Nnovation Initiative Program under 12
3775	3735		this subtitle. 13
3776	3736
3777	3737		[(j)] (K) “Qualified donation” means any private donation, gift, irrevocable 14
3778	3738		pledge, or bequest to a research endowment in accordance with § 6–613 of this subtitle. 15
3779	3739
3780	3740		[(k)] (L) “Regional higher education center” has the meaning stated in § 10–101 16
3781	3741		of the Education Article. 17
3782	3742
3783	3743		[(l)] (M) “Research endowment” means an account established at or 18
3784	3744		administered by a nonprofit institution of higher education in accordance with § 6–612 of 19
3785	3745		this subtitle. 20
3786	3746
3787	3747		6–604. 21
3788	3748
3789	3749		(a) There is a Maryland E–Nnovation Initiative Fund in the Department. 22
3790	3750
3791	3751		(b) The Secretary shall manage and supervise the Fund. 23
3792	3752
3793	3753		(c) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 24
3794	3754		the State Finance and Procurement Article. 25
3795	3755
3796	3756		(2) The State Treasurer shall hold the Fund separately, and the 26
3797	3757		Comptroller shall account for the Fund. 27
3798	3758
3799	3759		(d) The Fund consists of: 28
3800	3760
3801	3761		(1) revenue distributed to the Fund under § 2–202(a)(1) of the Tax – 29
3802		-	General Article; 30 ~~80 SENATE BILL 427~~
3803		-
	3762	+	General Article; 30
	3763	+	SENATE BILL 427 79
3804	3764
3805	3765
3806	3766		(2) money appropriated in the State budget to the Fund; and 1
3807	3767
3808	3768		(3) any other money from any other source accepted for the benefit of the 2
3809	3769		Fund. 3
3810	3770
3811	3771		(e) For each of fiscal years 2016 through 2026, the Governor shall include in the 4
3812	3772		budget bill an appropriation to the Fund in an amount that when combined with the 5
3813	3773		amount estimated to be distributed to the Fund under subsection (d)(1) of this section 6
3814	3774		equals at least $8,500,000. 7
3815	3775
3816	3776		(f) The Department may use the Fund to: 8
3817	3777
3818	3778		(1) finance research endowments at nonprofit institutions of higher 9
3819	3779		education in [scientific and technical fields] AN ELIGIBLE FIELD of study; and 10
3820	3780
3821	3781		(2) pay the related administrative, legal, and actuarial expenses of the 11
3822	3782		Department. 12
3823	3783
3824	3784		(g) (1) The State Treasurer shall invest the money of the Fund in the same 13
3825	3785		manner as other State money may be invested. 14
3826	3786
3827	3787		(2) Any investment earnings of the Fund shall be credited to the Fund. 15
3828	3788
3829	3789		(h) Expenditures from the Fund may be made only in accordance with the State 16
3830	3790		budget. 17
3831	3791
3832	3792		6–614. 18
3833	3793
3834	3794		(a) Endowment proceeds shall be expended by a nonprofit institution of higher 19
3835	3795		education to further basic and applied research in [scientific and technical fields] AN 20
3836	3796		ELIGIBLE FIELD of study as designated by the Authority that offer promising and 21
3837	3797		significant economic impacts and the opportunity to develop clusters of technological 22
3838	3798		innovation in the State[, including: 23
3839	3799
3840	3800		(1) physical sciences; 24
3841	3801
3842	3802		(2) life and neuro sciences; 25
3843	3803
3844	3804		(3) engineering; 26
3845	3805
3846	3806		(4) mathematical and computational sciences; 27
3847	3807
3848	3808		(5) regulatory science; 28
3849	3809
3850	3810		(6) autonomous systems; 29
	3811	+
	3812	+	(7) aeronautical and space science; 30 80 SENATE BILL 427
	3813	+
	3814	+
	3815	+
	3816	+	(8) environmental sciences; 1
	3817	+
	3818	+	(9) behavioral and language science; 2
	3819	+
	3820	+	(10) health sciences; 3
	3821	+
	3822	+	(11) agriculture; or 4
	3823	+
	3824	+	(12) cybersecurity]. 5
	3825	+
	3826	+	(b) Endowment proceeds may be expended by a nonprofit institution of higher 6
	3827	+	education for: 7
	3828	+
	3829	+	(1) the payment of the base salaries of newly endowed department chairs, 8
	3830	+	new professorship positions, new research scientists, or new research staff positions, 9
	3831	+	including research technicians and support personnel, and to fund affiliated graduate or 10
	3832	+	undergraduate student research fellowships, if the positions or fellowships are engaged in 11
	3833	+	[the areas of research identified in subsection (a) of this section] AN ELIGIBLE FIELD OF 12
	3834	+	STUDY; or 13
	3835	+
	3836	+	(2) the purchase of basic infrastructure, including laboratory and scientific 14
	3837	+	equipment or other essential equipment and materials, related to an [area of research 15
	3838	+	identified in subsection (a) of this section] ELIGIBLE FIELD OF ST UDY. 16
	3839	+
	3840	+	(c) An individual in a position that is funded by endowment proceeds under 17
	3841	+	subsection (b)(1) of this section shall: 18
	3842	+
	3843	+	(1) work at least 20% of the year in support of a federal laboratory or 19
	3844	+	associated federal laboratory research support organization; 20
	3845	+
	3846	+	(2) hold a joint appointment or secondary position at another nonprofit 21
	3847	+	institution of higher education in the State; or 22
	3848	+
	3849	+	(3) work at least 20% of the year in support of entrepreneurial activities 23
	3850	+	with a company engaged in [one or more of the research areas identified in subsection (a) 24
	3851	+	of this section] AN ELIGIBLE FIELD OF STUDY. 25
	3852	+
	3853	+	(d) The Authority shall issue eligibility criteria regarding the expenditure of 26
	3854	+	endowment proceeds to pay the base salaries of personnel, fund student fellowships, and 27
	3855	+	purchase basic infrastructure. 28
	3856	+
	3857	+	PART I. MARYLAND ECONOMIC DEVELOPMENT CORPORATION . 29
	3858	+
	3859	+	10–101. 30
3851	3860		SENATE BILL 427 81
3852	3861
3853	3862
3854		-	(7) aeronautical and space science; 1
3855		-
3856		-	(8) environmental sciences; 2
3857		-
3858		-	(9) behavioral and language science; 3
3859		-
3860		-	(10) health sciences; 4
3861		-
3862		-	(11) agriculture; or 5
3863		-
3864		-	(12) cybersecurity]. 6
3865		-
3866		-	(b) Endowment proceeds may be expended by a nonprofit institution of higher 7
3867		-	education for: 8
3868		-
3869		-	(1) the payment of the base salaries of newly endowed department chairs, 9
3870		-	new professorship positions, new research scientists, or new research staff positions, 10
3871		-	including research technicians and support personnel, and to fund affiliated graduate or 11
3872		-	undergraduate student research fellowships, if the positions or fellowships are engaged in 12
3873		-	[the areas of research identified in subsection (a) of this section] AN ELIGIBLE FIELD OF 13
3874		-	STUDY; or 14
3875		-
3876		-	(2) the purchase of basic infrastructure, including laboratory and scientific 15
3877		-	equipment or other essential equipment and materials, related to an [area of research 16
3878		-	identified in subsection (a) of this section] ELIGIBLE FIELD OF ST UDY. 17
3879		-
3880		-	(c) An individual in a position that is funded by endowment proceeds under 18
3881		-	subsection (b)(1) of this section shall: 19
3882		-
3883		-	(1) work at least 20% of the year in support of a federal laboratory or 20
3884		-	associated federal laboratory research support organization; 21
3885		-
3886		-	(2) hold a joint appointment or secondary position at another nonprofit 22
3887		-	institution of higher education in the State; or 23
3888		-
3889		-	(3) work at least 20% of the year in support of entrepreneurial activities 24
3890		-	with a company engaged in [one or more of the research areas identified in subsection (a) 25
3891		-	of this section] AN ELIGIBLE FIELD OF STUDY. 26
3892		-
3893		-	(d) The Authority shall issue eligibility criteria regarding the expenditure of 27
3894		-	endowment proceeds to pay the base salaries of personnel, fund student fellowships, and 28
3895		-	purchase basic infrastructure. 29
3896		-
3897		-	PART I. MARYLAND ECONOMIC DEVELOPMENT CORPORATION . 30
3898		-
3899		-	10–101. 31 82 SENATE BILL 427
3900		-
3901		-
3902		-
3903	3863		(a) In this subtitle the following words have the meanings indicated. 1
3904	3864
3905	3865		(b) “Board” means the Board of Directors of the Corporation. 2
3906	3866
3907	3867		(d) “Corporation” means the Maryland Economic Development Corporation. 3
3908	3868
3909		-	10–106. 4
3910		-
3911		-	(a) A Board of Directors shall manage the Corporation and exercise its powers. 5
3912		-
3913		-	(b) The Board consists of the following [12] members: 6
3914		-
3915		-	(1) as ex officio voting members: 7
3916		-
3917		-	(i) the Secretary; and 8
3918		-
3919		-	(ii) the Secretary of Transportation; [and] 9
3920		-
3921		-	(2) the following members, appointed by the Governor with the advice and 10
3922		-	consent of the Senate: 11
3923		-
3924		-	(i) two representatives of local government; 12
3925		-
3926		-	(ii) three members who are knowledgeable in real estate or 13
3927		-	commercial financing; 14
3928		-
3929		-	(iii) three members who are knowledgeable in industrial 15
3930		-	development or industrial relations; and 16
3931		-
3932		-	(iv) two members of the general public; 17
3933		-
3934		-	(3) ONE MEMBER OF THE GE NERAL PUBLIC APPOINT ED BY THE 18
3935		-	PRESIDENT OF THE SENATE; AND 19
3936		-
3937		-	(4) ONE MEMBER OF THE GE NERAL PUBLIC APPOINT ED BY THE 20
3938		-	SPEAKER OF THE HOUSE. 21
3939		-
3940		-	(c) Each member of the Board shall be a resident of the State. 22
3941		-
3942		-	(d) In appointing Board members, the Governor shall consider geographic 23
3943		-	diversity and minority representation. 24
3944		-
3945		-	(e) (1) The term of an appointed member is 4 years. 25
	3869	+	10–115. 4
	3870	+
	3871	+	(A) The Corporation may: 5
	3872	+
	3873	+	(1) adopt bylaws for the conduct of its business; 6
	3874	+
	3875	+	(2) adopt a seal; 7
	3876	+
	3877	+	(3) maintain offices at a place it designates in the State; 8
	3878	+
	3879	+	(4) accept loans, grants, or assistance of any kind from the federal 9
	3880	+	government, a governmental unit, a college or university, or a private source; 10
	3881	+
	3882	+	(5) enter into contracts and other legal instruments; 11
	3883	+
	3884	+	(6) sue and be sued in its own name; 12
	3885	+
	3886	+	(7) acquire, purchase, hold, lease as lessee, and use any franchise, patent, 13
	3887	+	or license and real, personal, mixed, tangible, or intangible property, or any interest in 14
	3888	+	property, necessary or convenient to carry out its purposes; 15
	3889	+
	3890	+	(8) sell, lease as lessor, transfer, and dispose of its property or interest in 16
	3891	+	property; 17
	3892	+
	3893	+	(9) fix and collect rates, rentals, fees, royalties, and charges for services, 18
	3894	+	resources, and facilities it provides or makes available; 19
	3895	+
	3896	+	(10) with the owner’s permission, enter lands, waters, or premises to make 20
	3897	+	a survey, sounding, boring, or examination to accomplish a purpose authorized by this 21
	3898	+	subtitle; 22
	3899	+
	3900	+	(11) further define or limit the term “revenues” defined in § 10–101 of this 23
	3901	+	subtitle as the term applies to a particular project, financing, or other matter; 24
	3902	+
	3903	+	(12) create, own, control, or be a member of a corporation, limited liability 25
	3904	+	company, partnership, or other person, whether for–profit or nonprofit; 26
	3905	+
	3906	+	(13) exercise a power usually possessed by a private corporation in 27
	3907	+	performing similar functions unless to do so would conflict with State law; and 28
	3908	+
	3909	+	(14) do all things necessary or convenient to carry out the powers expressly 29 82 SENATE BILL 427
	3910	+
	3911	+
	3912	+	granted by this subtitle. 1
	3913	+
	3914	+	(B) THE CORPORATION MAY UTILIZE UP TO 5% OF THE ALLOCATED 2
	3915	+	APPROPRIATION FOR AD MINISTRATIVE COSTS F OR ANY PROJECT OR PR OGRAM 3
	3916	+	DIRECTED BY THE CORPORATION INCLUDED IN THE STATE’S ANNUAL OPERATING 4
	3917	+	OR CAPITAL BUDGETS . 5
	3918	+
	3919	+	10–133. 6
	3920	+
	3921	+	(a) On or before October 1 of each year, the Corporation shall submit a report to 7
	3922	+	the Governor[, the Maryland Economic Development Commission,] and, in accordance with 8
	3923	+	§ 2–1257 of the State Government Article, the General Assembly. 9
	3924	+
	3925	+	(b) The report shall include a complete operating and financial statement and 10
	3926	+	summarize the activities of the Corporation during the preceding fiscal year. 11
	3927	+
	3928	+	10–135. RESERVED. 12
	3929	+
	3930	+	10–136. RESERVED. 13
	3931	+
	3932	+	Part II. Regional Institution Strategic Enterprise Zone Program. 14
	3933	+
	3934	+	10–137. 15
	3935	+
	3936	+	(a) In this [subtitle] PART the following words have the meanings indicated. 16
	3937	+
	3938	+	(b) “Area” means a geographic area in one or more political subdivisions in the 17
	3939	+	State described by a closed perimeter boundary. 18
	3940	+
	3941	+	(c) “Fund” means the Regional Institution Strategic Enterprise Zone Fund 19
	3942	+	created under [§ 5–1408] § 10–144 of this subtitle. 20
	3943	+
	3944	+	(d) “Nonprofit organization” means an organization that is exempt or eligible for 21
	3945	+	exemption from taxation under § 501(c)(3) of the Internal Revenue Code. 22
	3946	+
	3947	+	(e) “Qualified institution” means an entity that is designated as a qualified 23
	3948	+	institution under [§ 5–1403] § 10–139 of this subtitle and may include: 24
	3949	+
	3950	+	(1) a regional higher education center as defined under § 10–101 of the 25
	3951	+	Education Article; 26
	3952	+
	3953	+	(2) an institution of higher education as defined under § 10–101 of the 27
	3954	+	Education Article; or 28
	3955	+
	3956	+	(3) a nonprofit organization that is affiliated with a federal agency. 29
3946	3957		SENATE BILL 427 83
3947	3958
3948	3959
3949		-	(2) ~~The terms of the appointed members are staggered as required by the~~ 1
3950		-	~~terms provided~~ for ~~members of the Board on October 1, 2008.~~ 2
3951		-
3952		-	~~(3) At~~ the ~~end of a term,~~ ~~a member continues to serve until a successor is 3~~
3953		-	~~appointed and qualifies~~. 4
3954		-
3955		-	~~(4) A member who is appointed after a term has begun serves only for the 5~~
3956		-	~~rest of the term and until a successor is appointed and qualifies. 6~~
3957		-
3958		-	~~(f) Before taking office,~~ ~~each member appointed~~ to ~~the Board shall take the oath 7~~
3959		-	~~required by Article 1,~~ § 9 ~~of the Maryland Constitution. 8~~
3960		-
3961		-	~~10–115. 9~~
3962		-
3963		-	~~(A) The Corporation may: 10~~
3964		-
3965		-	~~(1) adopt bylaws for the conduct of its business; 11~~
3966		-
3967		-	~~(2) adopt~~ a ~~seal; 12~~
3968		-
3969		-	(3) ~~maintain offices at~~ a ~~place it designates in~~ the ~~State; 13~~
3970		-
3971		-	(4) ~~accept loans,~~ ~~grants, or assistance of any kind from the federal 14~~
3972		-	~~government, a governmental unit, a college or university, or a private source; 15~~
3973		-
3974		-	~~(5) enter into contracts and other legal instruments~~; 16
3975		-
3976		-	(6) ~~sue~~ and ~~be sued in its own name;~~ 17
3977		-
3978		-	~~(7) acquire,~~ ~~purchase, hold,~~ ~~lease as lessee,~~ and ~~use any franchise, patent, 18~~
3979		-	~~or license and real, personal, mixed, tangible, or intangible property, or any interest in 19~~
3980		-	~~property, necessary or convenient~~ to ~~carry out its purposes;~~ 20
3981		-
3982		-	~~(8) sell, lease as lessor, transfer, and dispose of its property or interest in 21~~
3983		-	~~property; 22~~
3984		-
3985		-	~~(9) fix and collect rates, rentals, fees, royalties, and charges for services, 23~~
3986		-	~~resources, and facilities it provides or makes available;~~ 24
3987		-
3988		-	~~(10) with the owner’s permission, enter lands, waters, or premises to make 25~~
3989		-	~~a survey,~~ ~~sounding, boring,~~ ~~or examination to accomplish~~ a ~~purpose authorized by this 26~~
3990		-	~~subtitle; 27~~
3991		-
3992		-	(11) ~~further define or limit~~ the ~~term “revenues” defined in § 10–101~~ of this 28
3993		-	~~subtitle as the term applies to a particular project, financing, or~~ other ~~matter; 29~~
3994		-	84 SENATE BILL 427
3995		-
3996		-
3997		-	~~(12) create, own, control, or be a member of a corporation, limited liability 1~~
3998		-	~~company, partnership,~~ ~~or other person,~~ ~~whether for–profit or nonprofit;~~ 2
3999		-
4000		-	~~(13) exercise a power usually possessed by a private corporation in 3~~
4001		-	~~performing similar functions unless~~ to ~~do so would conflict with State law; and 4~~
4002		-
4003		-	~~(14) do all things~~ necessary ~~or convenient~~ to ~~carry out~~ the ~~powers expressly~~ 5
4004		-	~~granted by this subtitle~~. 6
4005		-
4006		-	(B) ~~THE CORPORATION MAY UTILI ZE UP TO 5%~~ OF ~~THE ALLOCATED~~ 7
4007		-	~~APPROPRIATION FOR AD MINISTRATIVE COSTS FOR ANY PROJEC T~~ OR ~~PROGRAM~~ 8
4008		-	~~DIRECTED BY THE CORPORATION INCLUDED IN THE STATE’S ANNUAL OPERATING~~ 9
4009		-	~~OR CAPITAL BUDGETS . 10~~
4010		-
4011		-	~~10–133~~. 11
4012		-
4013		-	(a) ~~On or before October 1 of each year,~~ the ~~Corporation shall submit a report~~ to 12
4014		-	~~the Governor[,~~ the ~~Maryland Economic Development Commission,] and,~~ ~~in accordance with~~ 13
4015		-	~~§ 2–1257 of the State Government Article, the General Assembly~~. 14
4016		-
4017		-	~~(b) The report shall include a complete operating and financial statement and~~ 15
4018		-	~~summarize the activities of the Corporation during the preceding fiscal year. 16~~
4019		-
4020		-	~~10–135. RESERVED.~~ 17
4021		-
4022		-	~~10–136~~. ~~RESERVED. 18~~
4023		-
4024		-	~~Part II.~~ ~~Regional Institution Strategic Enterprise Zone Program. 19~~
4025		-
4026		-	~~10–137. 20~~
4027		-
4028		-	~~(a) In this [subtitle] PART the following words have the meanings indicated. 21~~
4029		-
4030		-	~~(b) “Area” means a geographic area in one or more political subdivisions in the 22~~
4031		-	~~State described by a closed perimeter boundary. 23~~
4032		-
4033		-	~~(c) “Fund” means the Regional Institution Strategic Enterprise Zone Fund 24~~
4034		-	~~created under [§~~ ~~5–1408] § 10–144 of this subtitle.~~ 25
4035		-
4036		-	~~(d) “Nonprofit organization” means an organization that is exempt or eligible for 26~~
4037		-	~~exemption from taxation under § 501~~(c)~~(3) of~~ the ~~Internal Revenue Code.~~ 27
4038		-
4039		-	~~(e) “Qualified institution” means an entity that is designated as a qualified 28~~
4040		-	~~institution under [§~~ ~~5–1403] § 10–139 of this subtitle and may include:~~ 29
4041		-	~~SENATE BILL 427~~ 85
4042		-
4043		-
4044		-	~~(1) a regional higher education center as defined under § 10–101 of the 1~~
4045		-	~~Education Article; 2~~
4046		-
4047		-	~~(2) an institution~~ of ~~higher education as defined under § 10–101 of~~ the 3
4048		-	~~Education Article;~~ ~~or 4~~
4049		-
4050		-	(3) ~~a nonprofit organization that is affiliated with a federal agency.~~ 5
4051		-
4052		-	~~(f) “RISE zone” means a geographic area in immediate proximity to a qualified 6~~
4053		-	~~institution that is targeted~~ for ~~increased economic and community development that meets 7~~
4054		-	~~the requirements~~ of ~~[§ 5–1404] § 10–140~~ of ~~this subtitle~~ and ~~is designated as a Regional 8~~
4055		-	~~Institution Strategic Enterprise zone by the [Secretary] CORPORATION under [§ 5–1404] 9~~
4056		-	~~§ 10–140~~ of ~~this subtitle~~. 10
4057		-
4058		-	~~10–138. 11~~
4059		-
4060		-	~~The purposes of the Regional Institution Strategic Enterprise Zone Program are to 12~~
4061		-	~~access institutional assets that have a strong and demonstrated history of commitment~~ to 13
4062		-	~~economic development and revitalization in the communities in which they are located and 14~~
4063		-	~~incentivize the location of innovative start–up businesses based on technology developed, 15~~
4064		-	~~licensed,~~ or ~~poised for commercialization at~~ or ~~in collaboration with qualified Maryland 16~~
4065		-	~~institutions. 17~~
4066		-
4067		-	~~10–139~~. 18
4068		-
4069		-	(a) ~~An institution may apply~~ to the ~~[Secretary] CORPORATION to be designated 19~~
4070		-	as a ~~qualified institution~~. 20
4071		-
4072		-	(b) ~~To be eligible for designation as~~ a qualified institution, ~~the applicant shall:~~ 21
4073		-
4074		-	~~(1) evidence~~ an ~~intention: 22~~
4075		-
4076		-	~~(i) to make a significant financial investment or commitment in an 23~~
4077		-	~~area of~~ the ~~State that the applicant intends to become a RISE zone; 24~~
4078		-
4079		-	(ii) ~~to use the resources and expertise~~ of ~~the applicant to spur 25~~
4080		-	~~economic development and community revitalization~~ in ~~an area of the State that the 26~~
4081		-	~~applicant intends to become a RISE zone; and 27~~
4082		-
4083		-	~~(iii) to create a significant number of new jobs within an area of the 28~~
4084		-	~~State that the applicant intends to become~~ a RISE zone~~; 29~~
4085		-
4086		-	~~(2) have a demonstrated history of community involvement and economic 30~~
4087		-	~~development within~~ the ~~communities that the applicant serves; and 31~~
4088		-
4089		-	~~(3) meet~~ the ~~minimum financial qualifications established by the 32~~
4090		-	~~[Secretary] CORPORATION . 33~~ 86 SENATE BILL 427
4091		-
4092		-
4093		-
4094		-	~~(c) If~~ the ~~applicant is a nonprofit organization that is not an institution~~ of ~~higher 1~~
4095		-	~~education, the application shall demonstrate an affiliation with a federal agency. 2~~
4096		-
4097		-	~~(d) (1) In addition to the requirements under subsection (b) of this section, the 3~~
4098		-	~~[Secretary] CORPORATION may establish by regulation any other requirements necessary~~ 4
4099		-	~~and appropriate in order for an applicant to be designated as a qualified institution.~~ 5
4100		-
4101		-	(2) The ~~[Secretary] CORPORATION shall adopt regulations that establish~~ 6
4102		-	~~factors for evaluating applications under subsection (b)~~ of ~~this section~~. 7
4103		-
4104		-	(e) In the ~~form and content acceptable to the [Secretary] CORPORATION ,~~ an 8
4105		-	~~applicant shall submit~~ to ~~the [Secretary] CORPORATION an application that contains the~~ 9
4106		-	~~information that the [Secretary]~~ CORPORATION ~~considers necessary to evaluate the~~ 10
4107		-	~~request for designation~~ as a ~~qualified institution~~. 11
4108		-
4109		-	~~(f) (1) Within 90 days after submission of an application under this section,~~ 12
4110		-	~~the [Secretary] CORPORATION shall approve or reject the application of an institution to 13~~
4111		-	~~be designated as~~ a ~~qualified institution.~~ 14
4112		-
4113		-	~~(2) At least 30 days before approval or rejection of an application under this~~ 15
4114		-	~~section, the [Secretary] CORPORATION shall notify the Legislative Policy Committee. 16~~
4115		-
4116		-	~~(3)~~ The ~~Legislative Policy Committee may provide advice to the [Secretary]~~ 17
4117		-	~~CORPORATION regarding the approval or rejection of an institution as a qualified 18~~
4118		-	~~institution. 19~~
4119		-
4120		-	~~10–140. 20~~
4121		-
4122		-	~~(a) On~~ or ~~after July 1, [2015] 2025, a qualified institution shall apply jointly with~~ 21
4123		-	~~a county, a municipal corporation, or the economic development agency of a county or~~ 22
4124		-	~~municipal corporation to the [Secretary] CORPORATION to designate an area as a 23~~
4125		-	~~Regional Institution Strategic Enterprise zone.~~ 24
4126		-
4127		-	~~(b) The application shall: 25~~
4128		-
4129		-	~~(1) be in the form and contain the information that the [Secretary] 26~~
4130		-	~~CORPORATION requires by regulation;~~ 27
4131		-
4132		-	~~(2) state the boundaries of the area of the proposed RISE zone, not 28~~
4133		-	~~exceeding 500 acres;~~ 29
4134		-
4135		-	~~(3) describe the nexus of the RISE zone with the qualified institution; and 30~~
4136		-
4137		-	~~(4) contain a plan that identifies~~ the ~~target strategy~~ and ~~anticipated~~ 31
4138		-	~~economic impacts of the RISE zone. 32~~ SENATE BILL 427 87
4139		-
4140		-
4141		-
4142		-	~~(c) The [Secretary] CORPORATION may establish, by regulation, any other~~ 1
4143		-	~~requirements necessary and appropriate for an area to be designated as a RISE zone. 2~~
4144		-
4145		-	~~(d) (1) Unless a county~~ in ~~which a municipal corporation is located agrees to 3~~
4146		-	~~designation of a RISE zone in the municipal corporation, qualified property in the 4~~
4147		-	~~municipal corporation may not receive~~ a ~~tax credit against county property tax.~~ 5
4148		-
4149		-	~~(2) Unless a municipal corporation located within a county agrees to 6~~
4150		-	~~designation of a RISE zone within its boundaries, qualified property in the county may not 7~~
4151		-	~~receive~~ a ~~tax credit against~~ the ~~municipal property tax.~~ 8
4152		-
4153		-	~~(e) (1) Within 120 days after submission of an application under this section~~, 9
4154		-	the ~~[Secretary] CORPORATION shall:~~ 10
4155		-
4156		-	(i) ~~approve~~ or ~~reject an application for designation of a RISE zone, 11~~
4157		-	~~including approval or modification~~ of ~~the proposed boundaries of the~~ RISE zone~~; and 12~~
4158		-
4159		-	~~(ii) define~~ the ~~boundaries of the approved RISE zone~~. 13
4160		-
4161		-	(2) ~~At least 45 days before approval or rejection of an application under this 14~~
4162		-	~~section, the [Secretary] CORPORATION shall notify the Legislative Policy Committee.~~ 15
4163		-
4164		-	~~(3) The Legislative Policy Committee may provide advice to the [Secretary] 16~~
4165		-	~~CORPORATION regarding:~~ 17
4166		-
4167		-	(i) ~~the approval or rejection of~~ the ~~RISE zone;~~ ~~or 18~~
4168		-
4169		-	~~(ii) the boundaries of the RISE zone proposed by the [Secretary] 19~~
4170		-	~~CORPORATION . 20~~
4171		-
4172		-	~~(f) (1) (i) Subject to subparagraph (ii) of this paragraph,~~ the ~~designation of 21~~
4173		-	~~an area as a RISE~~ zone is ~~effective for 10 years.~~ 22
4174		-
4175		-	~~(ii) Upon a joint application of~~ a qualified institution~~, a county and,~~ 23
4176		-	~~if applicable,~~ ~~a municipal corporation, or the economic development agency of a county or 24~~
4177		-	~~municipal corporation, the [Secretary] CORPORATION may renew a RISE zone for an 25~~
4178		-	~~additional [5~~] ~~10 years.~~ 26
4179		-
4180		-	~~(2)~~ The ~~[Secretary] CORPORATION may not:~~ 27
4181		-
4182		-	~~(i) 1. except as provided in item 2 of this item, approve more 28~~
4183		-	~~than three RISE zones in~~ a ~~single county or municipal corporation;~~ ~~or 29~~
4184		-
4185		-	~~2. approve~~ more than ~~four RISE zones in Baltimore City; or 30~~
	3960	+	(f) “RISE zone” means a geographic area in immediate proximity to a qualified 1
	3961	+	institution that is targeted for increased economic and community development that meets 2
	3962	+	the requirements of [§ 5–1404] § 10–140 of this subtitle and is designated as a Regional 3
	3963	+	Institution Strategic Enterprise zone by the [Secretary] CORPORATION under [§ 5–1404] 4
	3964	+	§ 10–140 of this subtitle. 5
	3965	+
	3966	+	10–138. 6
	3967	+
	3968	+	The purposes of the Regional Institution Strategic Enterprise Zone Program are to 7
	3969	+	access institutional assets that have a strong and demonstrated history of commitment to 8
	3970	+	economic development and revitalization in the communities in which they are located and 9
	3971	+	incentivize the location of innovative start–up businesses based on technology developed, 10
	3972	+	licensed, or poised for commercialization at or in collaboration with qualified Maryland 11
	3973	+	institutions. 12
	3974	+
	3975	+	10–139. 13
	3976	+
	3977	+	(a) An institution may apply to the [Secretary] CORPORATION to be designated 14
	3978	+	as a qualified institution. 15
	3979	+
	3980	+	(b) To be eligible for designation as a qualified institution, the applicant shall: 16
	3981	+
	3982	+	(1) evidence an intention: 17
	3983	+
	3984	+	(i) to make a significant financial investment or commitment in an 18
	3985	+	area of the State that the applicant intends to become a RISE zone; 19
	3986	+
	3987	+	(ii) to use the resources and expertise of the applicant to spur 20
	3988	+	economic development and community revitalization in an area of the State that the 21
	3989	+	applicant intends to become a RISE zone; and 22
	3990	+
	3991	+	(iii) to create a significant number of new jobs within an area of the 23
	3992	+	State that the applicant intends to become a RISE zone; 24
	3993	+
	3994	+	(2) have a demonstrated history of community involvement and economic 25
	3995	+	development within the communities that the applicant serves; and 26
	3996	+
	3997	+	(3) meet the minimum financial qualifications established by the 27
	3998	+	[Secretary] CORPORATION . 28
	3999	+
	4000	+	(c) If the applicant is a nonprofit organization that is not an institution of higher 29
	4001	+	education, the application shall demonstrate an affiliation with a federal agency. 30
	4002	+
	4003	+	(d) (1) In addition to the requirements under subsection (b) of this section, the 31
	4004	+	[Secretary] CORPORATION may establish by regulation any other requirements necessary 32
	4005	+	and appropriate in order for an applicant to be designated as a qualified institution. 33 84 SENATE BILL 427
	4006	+
	4007	+
	4008	+
	4009	+	(2) The [Secretary] CORPORATION shall adopt regulations that establish 1
	4010	+	factors for evaluating applications under subsection (b) of this section. 2
	4011	+
	4012	+	(e) In the form and content acceptable to the [Secretary] CORPORATION , an 3
	4013	+	applicant shall submit to the [Secretary] CORPORATION an application that contains the 4
	4014	+	information that the [Secretary] CORPORATION considers necessary to evaluate the 5
	4015	+	request for designation as a qualified institution. 6
	4016	+
	4017	+	(f) (1) Within 90 days after submission of an application under this section, 7
	4018	+	the [Secretary] CORPORATION shall approve or reject the application of an institution to 8
	4019	+	be designated as a qualified institution. 9
	4020	+
	4021	+	(2) At least 30 days before approval or rejection of an application under this 10
	4022	+	section, the [Secretary] CORPORATION shall notify the Legislative Policy Committee. 11
	4023	+
	4024	+	(3) The Legislative Policy Committee may provide advice to the [Secretary] 12
	4025	+	CORPORATION regarding the approval or rejection of an institution as a qualified 13
	4026	+	institution. 14
	4027	+
	4028	+	10–140. 15
	4029	+
	4030	+	(a) On or after July 1, [2015] 2025, a qualified institution shall apply jointly with 16
	4031	+	a county, a municipal corporation, or the economic development agency of a county or 17
	4032	+	municipal corporation to the [Secretary] CORPORATION to designate an area as a 18
	4033	+	Regional Institution Strategic Enterprise zone. 19
	4034	+
	4035	+	(b) The application shall: 20
	4036	+
	4037	+	(1) be in the form and contain the information that the [Secretary] 21
	4038	+	CORPORATION requires by regulation; 22
	4039	+
	4040	+	(2) state the boundaries of the area of the proposed RISE zone, not 23
	4041	+	exceeding 500 acres; 24
	4042	+
	4043	+	(3) describe the nexus of the RISE zone with the qualified institution; and 25
	4044	+
	4045	+	(4) contain a plan that identifies the target strategy and anticipated 26
	4046	+	economic impacts of the RISE zone. 27
	4047	+
	4048	+	(c) The [Secretary] CORPORATION may establish, by regulation, any other 28
	4049	+	requirements necessary and appropriate for an area to be designated as a RISE zone. 29
	4050	+
	4051	+	(d) (1) Unless a county in which a municipal corporation is located agrees to 30
	4052	+	designation of a RISE zone in the municipal corporation, qualified property in the 31
	4053	+	municipal corporation may not receive a tax credit against county property tax. 32 SENATE BILL 427 85
	4054	+
	4055	+
	4056	+
	4057	+	(2) Unless a municipal corporation located within a county agrees to 1
	4058	+	designation of a RISE zone within its boundaries, qualified property in the county may not 2
	4059	+	receive a tax credit against the municipal property tax. 3
	4060	+
	4061	+	(e) (1) Within 120 days after submission of an application under this section, 4
	4062	+	the [Secretary] CORPORATION shall: 5
	4063	+
	4064	+	(i) approve or reject an application for designation of a RISE zone, 6
	4065	+	including approval or modification of the proposed boundaries of the RISE zone; and 7
	4066	+
	4067	+	(ii) define the boundaries of the approved RISE zone. 8
	4068	+
	4069	+	(2) At least 45 days before approval or rejection of an application under this 9
	4070	+	section, the [Secretary] CORPORATION shall notify the Legislative Policy Committee. 10
	4071	+
	4072	+	(3) The Legislative Policy Committee may provide advice to the [Secretary] 11
	4073	+	CORPORATION regarding: 12
	4074	+
	4075	+	(i) the approval or rejection of the RISE zone; or 13
	4076	+
	4077	+	(ii) the boundaries of the RISE zone proposed by the [Secretary] 14
	4078	+	CORPORATION . 15
	4079	+
	4080	+	(f) (1) (i) Subject to subparagraph (ii) of this paragraph, the designation of 16
	4081	+	an area as a RISE zone is effective for 10 years. 17
	4082	+
	4083	+	(ii) Upon a joint application of a qualified institution, a county and, 18
	4084	+	if applicable, a municipal corporation, or the economic development agency of a county or 19
	4085	+	municipal corporation, the [Secretary] CORPORATION may renew a RISE zone for an 20
	4086	+	additional [5] 10 years. 21
	4087	+
	4088	+	(2) The [Secretary] CORPORATION may not: 22
	4089	+
	4090	+	(i) 1. except as provided in item 2 of this item, approve more 23
	4091	+	than three RISE zones in a single county or municipal corporation; or 24
	4092	+
	4093	+	2. approve more than four RISE zones in Baltimore City; or 25
	4094	+
	4095	+	(ii) approve a RISE zone the geographic area of which exceeds 500 26
	4096	+	acres. 27
	4097	+
	4098	+	(g) (1) A RISE zone may not be required to be in the immediate geographic 28
	4099	+	proximity of a qualified institution if an appropriate nexus for the increased economic and 29
	4100	+	community development is established with the qualified organization. 30
	4101	+	86 SENATE BILL 427
	4102	+
	4103	+
	4104	+	(2) If the proposed RISE zone is in a rural part of the State, a qualified 1
	4105	+	institution may not be required to be in the immediate area of the RISE zone. 2
	4106	+
	4107	+	(h) The [Secretary] CORPORATION may not designate a RISE zone in: 3
	4108	+
	4109	+	(1) a development district established under Title 12, Subtitle 2 of this 4
	4110	+	article; or 5
	4111	+
	4112	+	(2) a special taxing district established under Title 21 of the Local 6
	4113	+	Government Article or Section 62A of the Baltimore City Charter. 7
	4114	+
	4115	+	(i) The designation of an area as a RISE zone may not be construed 8
	4116	+	to limit or supersede a provision of a comprehensive plan, zoning ordinance, or other land 9
	4117	+	use policy adopted by a county, municipal corporation, or bicounty agency with land use 10
	4118	+	authority over the area designated as a RISE zone. 11
	4119	+
	4120	+	10–141. 12
	4121	+
	4122	+	(a) The [Secretary] CORPORATION shall assign to a RISE zone a business and 13
	4123	+	community development concierge who is an employee of the [Department] 14
	4124	+	CORPORATION . 15
	4125	+
	4126	+	(b) A business and community development concierge shall assist entities 16
	4127	+	locating in the RISE zone with: 17
	4128	+
	4129	+	(1) State, county, or municipal corporation permit and license applications; 18
	4130	+
	4131	+	(2) accessing existing programs at THE CORPORATION , the Department, 19
	4132	+	the Department of Housing and Community Development, the Maryland Department of 20
	4133	+	Labor, the Maryland Technology Development Corporation, or the Department of 21
	4134	+	Transportation; and 22
	4135	+
	4136	+	(3) any other activities the [Secretary] CORPORATION authorizes that 23
	4137	+	relate to the development of the RISE zone. 24
	4138	+
	4139	+	10–142. 25
	4140	+
	4141	+	(a) (1) To the extent provided for in this section, a business entity that locates 26
	4142	+	in a RISE zone is entitled to: 27
	4143	+
	4144	+	(i) for a business entity that locates in the RISE zone before January 28
	4145	+	1, 2023, the property tax credit under § 9–103.1 of the Tax – Property Article; 29
	4146	+
	4147	+	(ii) for a taxable year beginning before January 1, 2023, the income 30
	4148	+	tax credit under § 10–702 of the Tax – General Article; and 31
	4149	+	SENATE BILL 427 87
	4150	+
	4151	+
	4152	+	(iii) priority consideration for financial assistance from programs in 1
	4153	+	Subtitle 1 of this title. 2
	4154	+
	4155	+	(2) For purposes of the income tax credit authorized under paragraph (1)(ii) 3
	4156	+	of this subsection, the business entity is treated as being located in an enterprise zone. 4
	4157	+
	4158	+	(b) Subject to the limitations under subsection (a) of this section, a business entity 5
	4159	+	that moves into or locates in a RISE zone on or after the date that the zone is designated 6
	4160	+	under this [subtitle] PART may qualify for the incentives under this section. 7
	4161	+
	4162	+	(c) A business entity may not qualify for the incentives under subsection (a) of 8
	4163	+	this section unless the [Department] CORPORATION , in consultation with the county or 9
	4164	+	municipal corporation in which a RISE zone is located, certifies the business entity and its 10
	4165	+	location as consistent with the target strategy of the RISE zone. 11
	4166	+
	4167	+	(d) (1) Unless a business entity makes a significant capital investment or 12
	4168	+	expansion of its labor force after a RISE zone is designated, the incentives under this 13
	4169	+	section are not available to a business entity that was in a RISE zone before the date that 14
	4170	+	the zone is designated. 15
	4171	+
	4172	+	(2) The [Department] CORPORATION shall adopt regulations 16
	4173	+	establishing factors to determine if a business entity makes a significant capital investment 17
	4174	+	or expansion of its labor force under paragraph (1) of this subsection. 18
	4175	+
	4176	+	10–143. 19
	4177	+
	4178	+	(a) (1) (i) A qualified institution, THE CORPORATION , a county and, if 20
	4179	+	applicable, a municipal corporation, or the economic development agency of a county or 21
	4180	+	municipal corporation may establish a program to provide rental assistance to a business 22
	4181	+	entity that: 23
	4182	+
	4183	+	1. moves into or locates in a RISE zone on or after the date 24
	4184	+	that the zone is designated under this [subtitle] PART; AND 25
	4185	+
	4186	+	2. [has nexus with a qualified institution located in the RISE 26
	4187	+	zone; and 27
	4188	+
	4189	+	3. has been in active business not longer than 7 years] IS 28
	4190	+	ENCOMPASSED BY THE I NDUSTRY SECTORS AND ACTIVITIES INCLUDED ON THE LIST 29
	4191	+	DEVELOPED BY THE DEPARTMENT IN ACCORDA NCE WITH § 2.5–106 OF THIS 30
	4192	+	ARTICLE. 31
	4193	+
	4194	+	(ii) A business entity may not receive rental assistance under a 32
	4195	+	rental assistance program established in accordance with subparagraph (i) of this 33
	4196	+	paragraph for more than [3] 5 years. 34
4186	4197		88 SENATE BILL 427
4187	4198
4188	4199
4189		-	(ii) ~~approve~~ a ~~RISE zone the geographic area of which exceeds 500~~ 1
4190		-	~~acres.~~ 2
4191		-
4192		-	~~(g) (1)~~ A ~~RISE zone may not be required~~ to ~~be in~~ the ~~immediate geographic 3~~
4193		-	~~proximity of a qualified institution if an appropriate nexus for the increased economic and 4~~
4194		-	~~community development is established with~~ the ~~qualified organization.~~ 5
4195		-
4196		-	~~(2) If the proposed RISE zone is in~~ a ~~rural part~~ of the ~~State, a qualified~~ 6
4197		-	~~institution may not be required to be in the immediate area of the RISE zone. 7~~
4198		-
4199		-	~~(h)~~ The ~~[Secretary] CORPORATION may not designate a RISE zone in:~~ 8
4200		-
4201		-	~~(1) a development district established under Title 12,~~ ~~Subtitle 2 of this~~ 9
4202		-	~~article~~; or 10
4203		-
4204		-	~~(2) a special taxing district established under Title 21 of~~ the ~~Local~~ 11
4205		-	~~Government Article or Section 62A of the Baltimore City Charter~~. 12
4206		-
4207		-	(i) ~~(H)~~ The ~~designation of an area as a RISE zone may not be construed to limit~~ 13
4208		-	~~or supersede a provision of a comprehensive plan, zoning ordinance, or other land use policy~~ 14
4209		-	~~adopted by a county, municipal corporation, or bicounty agency with land use authority 15~~
4210		-	~~over~~ the ~~area designated as a RISE zone.~~ 16
4211		-
4212		-	~~10–141~~. 17
4213		-
4214		-	(a) The ~~[Secretary] CORPORATION shall assign to a RISE zone a business~~ and 18
4215		-	~~community development concierge who is an employee~~ of ~~the [Department]~~ 19
4216		-	~~CORPORATION .~~ 20
4217		-
4218		-	(b) ~~A business and community development concierge shall assist entities 21~~
4219		-	~~locating in the RISE zone with: 22~~
4220		-
4221		-	~~(1) State, county, or municipal~~ corporation ~~permit and license applications;~~ 23
4222		-
4223		-	~~(2) accessing existing programs at THE CORPORATION , the Department, 24~~
4224		-	the Department of ~~Housing and Community Development, the Maryland Department of 25~~
4225		-	~~Labor~~, the ~~Maryland Technology Development Corporation, or the Department of 26~~
4226		-	~~Transportation; and 27~~
4227		-
4228		-	~~(3) any other activities the [Secretary] CORPORATION authorizes that 28~~
4229		-	~~relate~~ to ~~the development of~~ the ~~RISE zone.~~ 29
4230		-
4231		-	~~10–142. 30~~
4232		-
4233		-	~~(a) (1) To the extent provided for in this section, a business entity that locates 31~~
4234		-	in ~~a RISE zone is entitled to: 32~~ SENATE BILL 427 89
4235		-
4236		-
4237		-
4238		-	~~(i) for a business entity that locates in~~ the ~~RISE zone before January 1~~
4239		-	~~1, 2023,~~ ~~the property tax credit under § 9–103.1 of the Tax – Property Article; 2~~
4240		-
4241		-	~~(ii) for a taxable year beginning before January 1, 2023, the income 3~~
4242		-	~~tax credit under § 10–702 of the Tax – General Article;~~ ~~and 4~~
4243		-
4244		-	~~(iii) priority consideration for financial assistance from programs~~ in 5
4245		-	~~Subtitle 1 of this title~~. 6
4246		-
4247		-	(2) ~~For purposes of~~ the ~~income tax credit authorized~~ under paragraph (1)~~(ii) 7~~
4248		-	of this ~~subsection,~~ the ~~business entity is treated as being located in an enterprise zone. 8~~
4249		-
4250		-	~~(b) Subject to the limitations under subsection (a) of this section, a business entity 9~~
4251		-	~~that moves into or locates in a RISE zone on or after~~ the ~~date that the zone is designated 10~~
4252		-	~~under this [subtitle] PART may qualify for~~ the ~~incentives~~ under this section~~. 11~~
4253		-
4254		-	~~(c) A business entity may not qualify for the incentives under subsection (a) of 12~~
4255		-	~~this section unless the [Department] CORPORATION , in consultation with the county or 13~~
4256		-	~~municipal corporation in which~~ a ~~RISE zone is located,~~ ~~certifies the business entity and its 14~~
4257		-	~~location as consistent with~~ the ~~target strategy of the RISE zone.~~ 15
4258		-
4259		-	~~(d) (1) Unless a business entity makes a significant capital investment or 16~~
4260		-	~~expansion~~ of ~~its labor force after a RISE zone is designated, the incentives~~ under this 17
4261		-	section ~~are not available to~~ a ~~business entity that was in a RISE zone before the date that 18~~
4262		-	~~the zone is designated.~~ 19
4263		-
4264		-	~~(2) The [Department] CORPORATION shall adopt regulations 20~~
4265		-	~~establishing factors to determine if a business entity makes a significant capital investment 21~~
4266		-	~~or expansion of its labor force under paragraph (1) of this subsection. 22~~
4267		-
4268		-	~~10–143~~. 23
4269		-
4270		-	(a) ~~(1) (i) A qualified institution,~~ THE CORPORATION ~~, a county and, if 24~~
4271		-	~~applicable, a municipal corporation, or~~ the ~~economic development agency of a county or 25~~
4272		-	~~municipal corporation may establish a program to provide rental assistance to a business 26~~
4273		-	~~entity~~ that~~: 27~~
4274		-
4275		-	~~1. moves into or locates in a RISE zone on or after the date 28~~
4276		-	~~that~~ the ~~zone is designated under this [subtitle] PART;~~ AND 29
4277		-
4278		-	~~2. [has nexus with a qualified institution located in the RISE 30~~
4279		-	~~zone; and 31~~
4280		-
4281		-	~~3. has been~~ in ~~active business not longer than 7 years]~~ ~~IS 32~~
4282		-	~~ENCOMPASSED BY THE I NDUSTRY SECTORS AND ACTIVITIES INCLUDED ON THE LIST 33~~ 90 SENATE BILL 427
4283		-
4284		-
4285		-	~~DEVELOPED BY~~ THE ~~DEPARTMENT IN ACCORDA NCE WITH § 2.5–106~~ OF ~~THIS~~ 1
4286		-	~~ARTICLE~~. 2
4287		-
4288		-	(ii) ~~A business entity~~ may ~~not receive rental assistance under a~~ 3
4289		-	~~rental assistance program established in accordance with subparagraph (i) of this 4~~
4290		-	~~paragraph for more than [3] 5 years.~~ 5
4291		-
4292		-	~~(2) (i) A qualified institution, a county~~ and~~, if applicable, a municipal~~ 6
4293		-	~~corporation, or the economic development agency of a county or municipal corporation that 7~~
4294		-	~~establishes a rental assistance program in accordance with paragraph~~ (1) of ~~this subsection 8~~
4295		-	~~may submit a request to receive a distribution~~ [~~of matching funds~~] ~~from the Fund~~. 9
4296		-
4297		-	(ii) The ~~application~~ shall ~~include: 10~~
4298		-
4299		-	~~1. a description of the rental assistance program; 11~~
4300		-
4301		-	~~2. the amount of funding that the applicant has secured to 12~~
4302		-	~~provide rental assistance under~~ the ~~rental assistance program;~~ 13
4303		-
4304		-	~~3. the amount requested for distribution from the Fund in 14~~
4305		-	~~accordance with this section; and 15~~
4306		-
4307		-	4. ~~any other information requested by~~ the [Department] 16
4308		-	~~CORPORATION . 17~~
4309		-
4310		-	~~(iii) The applicant shall submit the application on or before the date~~ 18
4311		-	~~that the [Department] CORPORATION specifies. 19~~
4312		-
4313		-	~~(b) (1) The [Department] CORPORATION shall review each request for 20~~
4314		-	~~distribution~~ [~~of matching funds~~] ~~from~~ the ~~Fund for compliance with the provisions of this 21~~
4315		-	~~section and [Department] CORPORATION regulations~~. 22
4316		-
4317		-	~~(2) [Subject~~ ~~to the availability of funds in the Fund and paragraph (3) of 23~~
4318		-	~~this subsection, if the Department approves a request for distribution of matching funds 24~~
4319		-	~~from the Fund,~~ ~~the Department shall distribute to a fund dedicated to the applicant’s rental 25~~
4320		-	~~assistance program an amount equal to three times the amount of funding specified under 26~~
4321		-	~~subsection (a)(2)(ii)2 of this section~~. 27
4322		-
4323		-	~~(3) Except as provided in subsection (c) of this section, the Department] 28~~
4324		-	~~THE CORPORATION shall make available not more than 25% of cumulative program funds 29~~
4325		-	~~from~~ the ~~Fund for rental assistance programs in a single RISE zone~~. 30
4326		-
4327		-	~~(c) (1) Within 90 days after approval by the [Department] CORPORATION of 31~~
4328		-	~~a request for [matching] funds under subsection (a) of this section, the applicant shall 32~~
4329		-	~~deposit an amount equal to or greater than the amount specified under subsection~~ (a)~~(2)(ii)2 33~~
4330		-	~~of this section into a fund dedicated to the applicant’s rental assistance program~~. 34 SENATE BILL 427 91
4331		-
4332		-
4333		-
4334		-	(2) ~~If an applicant fails~~ to ~~have deposited the amount required under~~ 1
4335		-	~~paragraph (1) of this subsection, any portion of funds allocated~~ to ~~the applicant that has~~ 2
4336		-	~~not been distributed shall be reallocated to another applicant in accordance with this 3~~
4337		-	~~section. 4~~
4338		-
4339		-	~~(3) If the [Department] CORPORATION fails to allocate the funds in the 5~~
4340		-	~~Fund under this~~ [~~subtitle~~] ~~PART and rental assistance programs in a single RISE zone 6~~
4341		-	~~have previously received 25% of cumulative program funds from the Fund, the 7~~
4342		-	~~[Department] CORPORATION may distribute additional funds to applicants for that RISE 8~~
4343		-	~~zone in accordance with this [subtitle] PART. 9~~
4344		-
4345		-	~~(d) (1) On or before September 15 each year,~~ ~~a rental assistance program that 10~~
4346		-	~~has received a distribution~~ of ~~funds from the Fund shall submit to~~ the [~~Department] 11~~
4347		-	~~CORPORATION an annual report in the form and containing the information required by 12~~
4348		-	~~the [Secretary] CORPORATION . 13~~
4349		-
4350		-	~~(2) The report required under paragraph (1) of this subsection shall detail 14~~
4351		-	~~the use of funds received under this section for the immediately preceding fiscal year and 15~~
4352		-	~~provide an update on any funds that were not disbursed during that fiscal year. 16~~
4353		-
4354		-	~~(3) The [Department] CORPORATION may not distribute [matching] 17~~
4355		-	~~funds from the Fund to a rental assistance program under this section if the rental 18~~
4356		-	~~assistance program has failed to submit the report required under paragraph (1) of this 19~~
4357		-	~~subsection. 20~~
4358		-
4359		-	(e) ~~A rental assistance program that receives a distribution [of matching funds] 21~~
4360		-	~~from the Fund shall be subject to an audit at least once every 3 years by an independent 22~~
4361		-	~~certified public accountant that the applicant and the [Department] CORPORATION select. 23~~
4362		-
4363		-	(f) ~~Based on the findings of an audit conducted under subsection (e) of this 24~~
4364		-	~~section, the [Department] CORPORATION may make an assessment against a qualified 25~~
4365		-	~~institution, a county,~~ ~~a municipal corporation,~~ ~~or an economic development agency to 26~~
4366		-	~~recapture any misused or undistributed funds. 27~~
4367		-
4368		-	~~10–144. 28~~
4369		-
4370		-	~~(a) There is a Regional Institution Strategic Enterprise Fund in the 29~~
4371		-	~~[Department~~] ~~CORPORATION . 30~~
4372		-
4373		-	~~(b) The [Secretary] EXECUTIVE DIRECTOR~~ OF ~~THE CORPORATION shall 31~~
4374		-	~~manage and supervise the Fund. 32~~
4375		-
4376		-	~~(c) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 33~~
4377		-	~~the State Finance and Procurement Article.~~ 34
	4200	+	(2) (i) A qualified institution, a county and, if applicable, a municipal 1
	4201	+	corporation, or the economic development agency of a county or municipal corporation that 2
	4202	+	establishes a rental assistance program in accordance with paragraph (1) of this subsection 3
	4203	+	may submit a request to receive a distribution [of matching funds] from the Fund. 4
	4204	+
	4205	+	(ii) The application shall include: 5
	4206	+
	4207	+	1. a description of the rental assistance program; 6
	4208	+
	4209	+	2. the amount of funding that the applicant has secured to 7
	4210	+	provide rental assistance under the rental assistance program; 8
	4211	+
	4212	+	3. the amount requested for distribution from the Fund in 9
	4213	+	accordance with this section; and 10
	4214	+
	4215	+	4. any other information requested by the [Department] 11
	4216	+	CORPORATION . 12
	4217	+
	4218	+	(iii) The applicant shall submit the application on or before the date 13
	4219	+	that the [Department] CORPORATION specifies. 14
	4220	+
	4221	+	(b) (1) The [Department] CORPORATION shall review each request for 15
	4222	+	distribution [of matching funds] from the Fund for compliance with the provisions of this 16
	4223	+	section and [Department] CORPORATION regulations. 17
	4224	+
	4225	+	(2) [Subject to the availability of funds in the Fund and paragraph (3) of 18
	4226	+	this subsection, if the Department approves a request for distribution of matching funds 19
	4227	+	from the Fund, the Department shall distribute to a fund dedicated to the applicant’s rental 20
	4228	+	assistance program an amount equal to three times the amount of funding specified under 21
	4229	+	subsection (a)(2)(ii)2 of this section. 22
	4230	+
	4231	+	(3) Except as provided in subsection (c) of this section, the Department] 23
	4232	+	THE CORPORATION shall make available not more than 25% of cumulative program funds 24
	4233	+	from the Fund for rental assistance programs in a single RISE zone. 25
	4234	+
	4235	+	(c) (1) Within 90 days after approval by the [Department] CORPORATION of 26
	4236	+	a request for [matching] funds under subsection (a) of this section, the applicant shall 27
	4237	+	deposit an amount equal to or greater than the amount specified under subsection (a)(2)(ii)2 28
	4238	+	of this section into a fund dedicated to the applicant’s rental assistance program. 29
	4239	+
	4240	+	(2) If an applicant fails to have deposited the amount required under 30
	4241	+	paragraph (1) of this subsection, any portion of funds allocated to the applicant that has 31
	4242	+	not been distributed shall be reallocated to another applicant in accordance with this 32
	4243	+	section. 33
	4244	+
	4245	+	(3) If the [Department] CORPORATION fails to allocate the funds in the 34 SENATE BILL 427 89
	4246	+
	4247	+
	4248	+	Fund under this [subtitle] PART and rental assistance programs in a single RISE zone 1
	4249	+	have previously received 25% of cumulative program funds from the Fund, the 2
	4250	+	[Department] CORPORATION may distribute additional funds to applicants for that RISE 3
	4251	+	zone in accordance with this [subtitle] PART. 4
	4252	+
	4253	+	(d) (1) On or before September 15 each year, a rental assistance program that 5
	4254	+	has received a distribution of funds from the Fund shall submit to the [Department] 6
	4255	+	CORPORATION an annual report in the form and containing the information required by 7
	4256	+	the [Secretary] CORPORATION . 8
	4257	+
	4258	+	(2) The report required under paragraph (1) of this subsection shall detail 9
	4259	+	the use of funds received under this section for the immediately preceding fiscal year and 10
	4260	+	provide an update on any funds that were not disbursed during that fiscal year. 11
	4261	+
	4262	+	(3) The [Department] CORPORATION may not distribute [matching] 12
	4263	+	funds from the Fund to a rental assistance program under this section if the rental 13
	4264	+	assistance program has failed to submit the report required under paragraph (1) of this 14
	4265	+	subsection. 15
	4266	+
	4267	+	(e) A rental assistance program that receives a distribution [of matching funds] 16
	4268	+	from the Fund shall be subject to an audit at least once every 3 years by an independent 17
	4269	+	certified public accountant that the applicant and the [Department] CORPORATION select. 18
	4270	+
	4271	+	(f) Based on the findings of an audit conducted under subsection (e) of this 19
	4272	+	section, the [Department] CORPORATION may make an assessment against a qualified 20
	4273	+	institution, a county, a municipal corporation, or an economic development agency to 21
	4274	+	recapture any misused or undistributed funds. 22
	4275	+
	4276	+	10–144. 23
	4277	+
	4278	+	(a) There is a Regional Institution Strategic Enterprise Fund in the 24
	4279	+	[Department] CORPORATION . 25
	4280	+
	4281	+	(b) The [Secretary] EXECUTIVE DIRECTOR OF THE CORPORATION shall 26
	4282	+	manage and supervise the Fund. 27
	4283	+
	4284	+	(c) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 28
	4285	+	the State Finance and Procurement Article. 29
	4286	+
	4287	+	(2) The State Treasurer shall hold the Fund separately, and the 30
	4288	+	Comptroller shall account for the Fund. 31
	4289	+
	4290	+	(d) The Fund consists of: 32
	4291	+
	4292	+	(1) money appropriated in the State budget to the Fund; and 33
	4293	+	90 SENATE BILL 427
	4294	+
	4295	+
	4296	+	(2) any other money from any other source accepted for the benefit of the 1
	4297	+	Fund. 2
	4298	+
	4299	+	(e) The [Department] CORPORATION may use the Fund to: 3
	4300	+
	4301	+	(1) finance, in coordination with qualified institutions, counties, and 4
	4302	+	municipal corporations, the provision of rental assistance to business entities located in 5
	4303	+	RISE zones; and 6
	4304	+
	4305	+	(2) pay the related administrative, legal, and actuarial expenses of the 7
	4306	+	[Department] CORPORATION . 8
	4307	+
	4308	+	(f) (1) The State Treasurer shall invest the money of the Fund in the same 9
	4309	+	manner as other State money may be invested. 10
	4310	+
	4311	+	(2) Any investment earnings of the Fund shall be credited to the Fund. 11
	4312	+
	4313	+	(g) Expenditures from the Fund may be made only in accordance with the State 12
	4314	+	budget. 13
	4315	+
	4316	+	10–145. 14
	4317	+
	4318	+	[In accordance with § 2.5–109 of this article, the Department] THE CORPORATION 15
	4319	+	shall submit a report on the effectiveness of the tax incentives authorized under this 16
	4320	+	[subtitle] PART WITH THE ANNUAL REPORT SU BMITTED IN ACCORDANC E WITH § 17
	4321	+	10–133 OF THIS SUBTITLE. 18
	4322	+
	4323	+	10–146. 19
	4324	+
	4325	+	This [subtitle] PART and the tax credits and benefits authorized under it shall 20
	4326	+	terminate on January 1, 2030. 21
	4327	+
	4328	+	10–147. RESERVED. 22
	4329	+
	4330	+	10–148. RESERVED. 23
	4331	+
	4332	+	Part III. Build Our Future Grant Pilot Program. 24
	4333	+
	4334	+	10–149. 25
	4335	+
	4336	+	(a) In this [subtitle] PART the following words have the meanings indicated. 26
	4337	+
	4338	+	10–150. 27
	4339	+
	4340	+	(a) There is a Build Our Future Grant Pilot Program in the [Department] 28
	4341	+	CORPORATION . 29 SENATE BILL 427 91
	4342	+
	4343	+
	4344	+
	4345	+	(b) The purpose of the Program is to provide grant funding for infrastructure 1
	4346	+	projects intended to support innovation in an eligible technology sector. 2
	4347	+
	4348	+	(c) Grants may be awarded to private companies, nonprofit entities, local 3
	4349	+	governments, or colleges and universities in the State. 4
	4350	+
	4351	+	(d) The [Department] CORPORATION shall administer the Program. 5
	4352	+
	4353	+	10–151. 6
	4354	+
	4355	+	(a) To carry out the purpose of the Program, the [Department] CORPORATION 7
	4356	+	may award grants in accordance with this [subtitle] PART to approved recipients carrying 8
	4357	+	out infrastructure projects intended to support innovation in any of the [following eligible 9
	4358	+	technology sectors: 10
	4359	+
	4360	+	(1) advanced manufacturing; 11
	4361	+
	4362	+	(2) aerospace; 12
	4363	+
	4364	+	(3) agriculture; 13
	4365	+
	4366	+	(4) artificial intelligence; 14
	4367	+
	4368	+	(5) biotechnology; 15
	4369	+
	4370	+	(6) blue technology; 16
	4371	+
	4372	+	(7) cybersecurity; 17
	4373	+
	4374	+	(8) defense; 18
	4375	+
	4376	+	(9) energy and sustainability; 19
	4377	+
	4378	+	(10) life sciences; 20
	4379	+
	4380	+	(11) quantum; and 21
	4381	+
	4382	+	(12) sensors and robotics] INDUSTRY SECTORS AND ACTIVITIES 22
	4383	+	INCLUDED ON THE LIST DEVELOPED BY THE DEPARTMENT IN ACCORDA NCE WITH § 23
	4384	+	2.5–106 OF THIS ARTICLE . 24
	4385	+
	4386	+	(b) Examples of eligible projects include: 25
	4387	+
	4388	+	(1) sensitive compartmented information facilities; 26
4378	4389		92 SENATE BILL 427
4379	4390
4380	4391
4381		-	(2) The State Treasurer shall hold the Fund separately, and the 1
4382		-	Comptroller shall account for the Fund. 2
4383		-
4384		-	(d) The Fund consists of: 3
4385		-
4386		-	(1) money appropriated in the State budget to the Fund; and 4
4387		-
4388		-	(2) any other money from any other source accepted for the benefit of the 5
4389		-	Fund. 6
4390		-
4391		-	(e) The [Department] CORPORATION may use the Fund to: 7
4392		-
4393		-	(1) finance, in coordination with qualified institutions, counties, and 8
4394		-	municipal corporations, the provision of rental assistance to business entities located in 9
4395		-	RISE zones; and 10
4396		-
4397		-	(2) pay the related administrative, legal, and actuarial expenses of the 11
4398		-	[Department] CORPORATION . 12
4399		-
4400		-	(f) (1) The State Treasurer shall invest the money of the Fund in the same 13
4401		-	manner as other State money may be invested. 14
4402		-
4403		-	(2) Any investment earnings of the Fund shall be credited to the Fund. 15
4404		-
4405		-	(g) Expenditures from the Fund may be made only in accordance with the State 16
4406		-	budget. 17
4407		-
4408		-	10–145. 18
4409		-
4410		-	[In accordance with § 2.5–109 of this article, the Department] THE CORPORATION 19
4411		-	shall submit a report on the effectiveness of the tax incentives authorized under this 20
4412		-	[subtitle] PART WITH THE ANNUAL REPO RT SUBMITTED IN ACCO RDANCE WITH § 21
4413		-	10–133 OF THIS SUBTITLE . 22
4414		-
4415		-	10–146. 23
4416		-
4417		-	This [subtitle] PART and the tax credits and benefits authorized under it shall 24
4418		-	terminate on January 1, 2030. 25
4419		-
4420		-	10–147. RESERVED. 26
4421		-
4422		-	10–148. RESERVED. 27
4423		-
4424		-	Part III. Build Our Future Grant Pilot Program. 28
4425		-
4426		-	10–149. 29 SENATE BILL 427 93
4427		-
4428		-
4429		-
4430		-	(a) In this [subtitle] PART the following words have the meanings indicated. 1
4431		-
4432		-	10–150. 2
4433		-
4434		-	(a) There is a Build Our Future Grant Pilot Program in the [Department] 3
4435		-	CORPORATION . 4
4436		-
4437		-	(b) The purpose of the Program is to provide grant funding for infrastructure 5
4438		-	projects intended to support innovation in an eligible technology sector. 6
4439		-
4440		-	(c) Grants may be awarded to private companies, nonprofit entities, local 7
4441		-	governments, or colleges and universities in the State. 8
4442		-
4443		-	(d) The [Department] CORPORATION shall administer the Program. 9
4444		-
4445		-	10–151. 10
4446		-
4447		-	(a) To carry out the purpose of the Program, the [Department] CORPORATION 11
4448		-	may award grants in accordance with this [subtitle] PART to approved recipients carrying 12
4449		-	out infrastructure projects intended to support innovation in any of the [following eligible 13
4450		-	technology sectors: 14
4451		-
4452		-	(1) advanced manufacturing; 15
4453		-
4454		-	(2) aerospace; 16
4455		-
4456		-	(3) agriculture; 17
4457		-
4458		-	(4) artificial intelligence; 18
4459		-
4460		-	(5) biotechnology; 19
4461		-
4462		-	(6) blue technology; 20
4463		-
4464		-	(7) cybersecurity; 21
4465		-
4466		-	(8) defense; 22
4467		-
4468		-	(9) energy and sustainability; 23
4469		-
4470		-	(10) life sciences; 24
4471		-
4472		-	(11) quantum; and 25
4473		-	94 SENATE BILL 427
4474		-
4475		-
4476		-	(12) sensors and robotics] INDUSTRY SECTORS AND ACTIVITIES 1
4477		-	INCLUDED ON THE LIST DEVELOPED BY THE DEPARTMENT IN ACCORDA NCE WITH § 2
4478		-	2.5–106 OF THIS ARTICLE . 3
4479		-
4480		-	(b) Examples of eligible projects include: 4
4481		-
4482		-	(1) sensitive compartmented information facilities; 5
4483		-
4484		-	(2) wet laboratories; 6
4485		-
4486		-	(3) cyber ranges; 7
4487		-
4488		-	(4) prototype manufacturing centers; and 8
4489		-
4490		-	(5) other specialized workforce training, skill certification, or 9
4491		-	research–related spaces. 10
4492		-
4493		-	(c) Grant awards may be used to defray the cost a grantee incurs to acquire, 11
4494		-	construct, rehabilitate, install, improve, or equip an eligible innovation infrastructure 12
4495		-	project. 13
4496		-
4497		-	(d) (1) A single entity may be awarded not more than $2,000,000 in grant 14
4498		-	funds in a fiscal year. 15
4499		-
4500		-	(2) (i) For a grant award up to $1,000,000, a grantee shall provide 16
4501		-	matching funds that are at least 200% of the grant amount. 17
4502		-
4503		-	(ii) For a grant award exceeding $1,000,000, and up to $2,000,000, a 18
4504		-	grantee shall provide matching funds that are at least 400% of the grant amount. 19
4505		-
4506		-	(iii) Funds received by a grantee through other State grant programs 20
4507		-	are not counted toward the grantee’s matching funds requirement. 21
4508		-
4509		-	(3) A grantee must demonstrate an ability to cover the full estimated costs 22
4510		-	of the project for which the grant is awarded. 23
4511		-
4512		-	(4) (i) Not more than 50% of the appropriation to the Fund in a fiscal 24
4513		-	year may be awarded to colleges and universities in that fiscal year. 25
4514		-
4515		-	(ii) Grants to colleges and universities from the Fund must be 26
4516		-	awarded to projects that: 27
4517		-
4518		-	1. are performed in collaboration with private industry; or 28
4519		-
4520		-	2. offer the prospect of significant economic impact and the 29
4521		-	opportunity to develop entrepreneurship or clusters of technological innovation in the 30
4522		-	State. 31 SENATE BILL 427 95
4523		-
4524		-
4525		-
4526		-	(E) WHEN PROVIDING FUNDIN G FROM THE FUND, THE CORPORATION 1
4527		-	SHALL PRIORITIZE APP LICANTS LOCATED IN A REGIONAL INSTITUTION STRATEGIC 2
4528		-	ENTERPRISE ZONE THAT IS DESIGNATED UNDER PART II OF THIS SUBTITLE. 3
4529		-
4530		-	10–152. 4
4531		-
4532		-	A grantee may be subject to repayment of the grant in an amount determined by the 5
4533		-	[Department] CORPORATION if the grantee fails to: 6
4534		-
4535		-	(1) comply with reporting requirements established by the [Department] 7
4536		-	CORPORATION ; or 8
4537		-
4538		-	(2) demonstrate appropriate use of grant funds. 9
4539		-
4540		-	10–153. 10
4541		-
4542		-	(a) There is a Build Our Future Grant Fund. 11
4543		-
4544		-	(b) The [Department] CORPORATION shall administer the Fund. 12
4545		-
4546		-	(c) The purpose of the Fund is to provide grants for infrastructure projects to 13
4547		-	support innovation in eligible technology sectors under this [subtitle] PART. 14
4548		-
4549		-	(d) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 15
4550		-	under § 7–302 of the State Finance and Procurement Article. 16
4551		-
4552		-	(2) The State Treasurer shall hold the Fund separately, and the 17
4553		-	Comptroller shall account for the Fund. 18
4554		-
4555		-	(e) The Fund consists of: 19
4556		-
4557		-	(1) money appropriated in the State budget to the Fund; 20
4558		-
4559		-	(2) any interest earnings of the Fund; and 21
4560		-
4561		-	(3) any other money from any other source accepted for the benefit of the 22
4562		-	Fund. 23
4563		-
4564		-	(f) (1) The Fund may be used to: 24
4565		-
4566		-	(i) provide grants in accordance with this [subtitle] PART; and 25
4567		-
4568		-	(ii) pay the administrative costs of the Program. 26
	4392	+	(2) wet laboratories; 1
	4393	+
	4394	+	(3) cyber ranges; 2
	4395	+
	4396	+	(4) prototype manufacturing centers; and 3
	4397	+
	4398	+	(5) other specialized workforce training, skill certification, or 4
	4399	+	research–related spaces. 5
	4400	+
	4401	+	(c) Grant awards may be used to defray the cost a grantee incurs to acquire, 6
	4402	+	construct, rehabilitate, install, improve, or equip an eligible innovation infrastructure 7
	4403	+	project. 8
	4404	+
	4405	+	(d) (1) A single entity may be awarded not more than $2,000,000 in grant 9
	4406	+	funds in a fiscal year. 10
	4407	+
	4408	+	(2) (i) For a grant award up to $1,000,000, a grantee shall provide 11
	4409	+	matching funds that are at least 200% of the grant amount. 12
	4410	+
	4411	+	(ii) For a grant award exceeding $1,000,000, and up to $2,000,000, a 13
	4412	+	grantee shall provide matching funds that are at least 400% of the grant amount. 14
	4413	+
	4414	+	(iii) Funds received by a grantee through other State grant programs 15
	4415	+	are not counted toward the grantee’s matching funds requirement. 16
	4416	+
	4417	+	(3) A grantee must demonstrate an ability to cover the full estimated costs 17
	4418	+	of the project for which the grant is awarded. 18
	4419	+
	4420	+	(4) (i) Not more than 50% of the appropriation to the Fund in a fiscal 19
	4421	+	year may be awarded to colleges and universities in that fiscal year. 20
	4422	+
	4423	+	(ii) Grants to colleges and universities from the Fund must be 21
	4424	+	awarded to projects that: 22
	4425	+
	4426	+	1. are performed in collaboration with private industry; or 23
	4427	+
	4428	+	2. offer the prospect of significant economic impact and the 24
	4429	+	opportunity to develop entrepreneurship or clusters of technological innovation in the 25
	4430	+	State. 26
	4431	+
	4432	+	(E) WHEN PROVIDING FUNDIN G FROM THE FUND, THE CORPORATION 27
	4433	+	SHALL PRIORITIZE APP LICANTS LOCATED IN A REGIONAL INSTITUTION STRATEGIC 28
	4434	+	ENTERPRISE ZONE THAT IS DESIGNATED UNDER PART II OF THIS SUBTITLE. 29
	4435	+
	4436	+	10–152. 30
	4437	+
	4438	+	A grantee may be subject to repayment of the grant in an amount determined by the 31 SENATE BILL 427 93
	4439	+
	4440	+
	4441	+	[Department] CORPORATION if the grantee fails to: 1
	4442	+
	4443	+	(1) comply with reporting requirements established by the [Department] 2
	4444	+	CORPORATION ; or 3
	4445	+
	4446	+	(2) demonstrate appropriate use of grant funds. 4
	4447	+
	4448	+	10–153. 5
	4449	+
	4450	+	(a) There is a Build Our Future Grant Fund. 6
	4451	+
	4452	+	(b) The [Department] CORPORATION shall administer the Fund. 7
	4453	+
	4454	+	(c) The purpose of the Fund is to provide grants for infrastructure projects to 8
	4455	+	support innovation in eligible technology sectors under this [subtitle] PART. 9
	4456	+
	4457	+	(d) (1) The Fund is a special, nonlapsing fund that is not subject to reversion 10
	4458	+	under § 7–302 of the State Finance and Procurement Article. 11
	4459	+
	4460	+	(2) The State Treasurer shall hold the Fund separately, and the 12
	4461	+	Comptroller shall account for the Fund. 13
	4462	+
	4463	+	(e) The Fund consists of: 14
	4464	+
	4465	+	(1) money appropriated in the State budget to the Fund; 15
	4466	+
	4467	+	(2) any interest earnings of the Fund; and 16
	4468	+
	4469	+	(3) any other money from any other source accepted for the benefit of the 17
	4470	+	Fund. 18
	4471	+
	4472	+	(f) (1) The Fund may be used to: 19
	4473	+
	4474	+	(i) provide grants in accordance with this [subtitle] PART; and 20
	4475	+
	4476	+	(ii) pay the administrative costs of the Program. 21
	4477	+
	4478	+	(2) During each fiscal year, the Department may use not more than 10% of 22
	4479	+	the money appropriated to the Fund to administer the Program. 23
	4480	+
	4481	+	(g) (1) The State Treasurer shall invest the money of the Fund in the same 24
	4482	+	manner as other State money may be invested. 25
	4483	+
	4484	+	(2) Any interest earnings of the Fund shall be credited to the Fund. 26
	4485	+
	4486	+	(h) Expenditures from the Fund may be made only in accordance with the State 27 94 SENATE BILL 427
	4487	+
	4488	+
	4489	+	budget. 1
	4490	+
	4491	+	10–154. 2
	4492	+
	4493	+	On or before July 1, [2026] 2029, the [Department] CORPORATION shall report to 3
	4494	+	the Governor and, in accordance with § 2–1257 of the State Government Article, the 4
	4495	+	General Assembly on the projects funded through and the economic impact of the Program. 5
	4496	+
	4497	+	10–155. 6
	4498	+
	4499	+	The [Secretary] CORPORATION may adopt regulations to carry out this [subtitle] 7
	4500	+	PART. 8
	4501	+
	4502	+	10–401. 9
	4503	+
	4504	+	(a) In this subtitle the following words have the meanings indicated. 10
	4505	+
	4506	+	(c) “Corporation” means the Maryland Technology Development Corporation. 11
	4507	+
	4508	+	10–408. 12
	4509	+
	4510	+	(a) The Corporation shall adopt regulations establishing: 13
	4511	+
	4512	+	(1) the investment committee; 14
	4513	+
	4514	+	(2) the responsibilities of the investment committee, INCLUDING A 15
	4515	+	PROCESS FOR CONSIDER ING REMEDIES , INCLUDING DIVESTMENT , FOR 16
	4516	+	INVESTMENTS IN A BUS INESS THAT NO LONGER MEETS THE DEFINITION OF A 17
	4517	+	QUALIFIED BUSINESS ; and 18
	4518	+
	4519	+	(3) the procedures for the appointment of investment committee members. 19
	4520	+
	4521	+	10–415. 20
	4522	+
	4523	+	(a) (1) On or before October 1 of each year, the Corporation shall report to the 21
	4524	+	Governor[, the Maryland Economic Development Commission,] and, in accordance with § 22
	4525	+	2–1257 of the State Government Article, the General Assembly. 23
	4526	+
	4527	+	(2) The report required under this subsection shall include: 24
	4528	+
	4529	+	(i) a complete operating and financial statement covering the 25
	4530	+	Corporation’s operations; 26
	4531	+
	4532	+	(ii) a summary of the Corporation’s activities during the preceding 27
	4533	+	fiscal year; 28
	4534	+	SENATE BILL 427 95
	4535	+
	4536	+
	4537	+	(iii) information on all salaries and any incentives approved by the 1
	4538	+	Board for Corporation employees; 2
	4539	+
	4540	+	(iv) information on outreach, training, mentorship, support, and 3
	4541	+	investment in minority and women–owned qualified businesses, including support for 4
	4542	+	marketing by the Maryland [Small Business Development Financing Authority ] 5
	4543	+	ECONOMIC INCLUSION FUND; 6
	4544	+
	4545	+	(v) information on entities that have current investments and 7
	4546	+	entities that received funding or investments in the current year on the: 8
	4547	+
	4548	+	1. principal business operations; 9
	4549	+
	4550	+	2. number of employees in the State and the number of 10
	4551	+	employees outside the State; 11
	4552	+
	4553	+	3. capital or other investments made in the State; and 12
	4554	+
	4555	+	4. proposed and actual job creation or capital investment in 13
	4556	+	the State as a result of the investment or support; 14
	4557	+
	4558	+	(vi) a list of businesses that have received funding that would no 15
	4559	+	longer qualify as a qualified business; and 16
	4560	+
	4561	+	(vii) information on the creation of and appointments made to an 17
	4562	+	advisory committee and the responsibilities of the advisory committee and members of the 18
	4563	+	committee. 19
	4564	+
	4565	+	(b) (1) On or before October 1 each year, beginning in 2023, and every 6 20
	4566	+	months thereafter, the Corporation shall report to the Governor[, the Maryland Economic 21
	4567	+	Development Commission,] and, in accordance with § 2–1257 of the State Government 22
	4568	+	Article, the Joint Audit and Evaluation Committee and the General Assembly. 23
	4569	+
	4570	+	(2) The report required under this subsection shall include a list of the 24
	4571	+	qualified businesses or other businesses receiving support through programs administered 25
	4572	+	by the Corporation, including those receiving investments made under § 21–123.2 of the 26
	4573	+	State Personnel and Pensions Article. 27
	4574	+
	4575	+	(3) The list of qualified businesses or other businesses receiving support 28
	4576	+	shall include for each business: 29
	4577	+
	4578	+	(i) the number of employees in the State; 30
	4579	+
	4580	+	(ii) the number of employees outside the State; 31
	4581	+
	4582	+	(iii) the capital or other investments made in the State; and 32
4569	4583		96 SENATE BILL 427
4570	4584
4571	4585
4572		-	(2) ~~During each fiscal year,~~ the ~~Department may use not more than 10% of~~ 1
4573		-	~~the money appropriated to~~ the ~~Fund to administer the Program~~. 2
4574		-
4575		-	(g) (1) ~~The State Treasurer shall invest~~ the ~~money of the Fund in the same~~ 3
4576		-	~~manner as other State money may be invested.~~ 4
4577		-
4578		-	~~(2) Any interest earnings of~~ the ~~Fund shall be credited to~~ the ~~Fund. 5~~
4579		-
4580		-	(h) ~~Expenditures from~~ the ~~Fund may be made only in accordance with~~ the ~~State 6~~
4581		-	~~budget. 7~~
4582		-
4583		-	~~10–154. 8~~
4584		-
4585		-	~~On or before July 1, [2026] 2029,~~ the ~~[Department] CORPORATION shall report to 9~~
4586		-	~~the Governor and, in accordance with § 2–1257~~ of the ~~State Government Article,~~ ~~the 10~~
4587		-	~~General Assembly on the projects funded through and the economic impact of the Program. 11~~
4588		-
4589		-	~~10–155. 12~~
4590		-
4591		-	~~The [Secretary] CORPORATION may adopt regulations to carry out this [subtitle] 13~~
4592		-	~~PART~~. 14
4593		-
4594		-	~~10–401.~~ 15
4595		-
4596		-	~~(a) In this subtitle the following words have the meanings indicated. 16~~
4597		-
4598		-	~~(c) “Corporation” means~~ the Maryland ~~Technology Development Corporation.~~ 17
4599		-
4600		-	10–~~408. 18~~
4601		-
4602		-	~~(a)~~ The ~~Corporation shall adopt regulations establishing: 19~~
4603		-
4604		-	~~(1) the investment committee; 20~~
4605		-
4606		-	~~(2) the responsibilities of the investment committee, INCLUDING A 21~~
4607		-	~~PROCESS FOR CONSIDER ING REMEDIES~~ , ~~INCLUDING DIVESTMENT , FOR 22~~
4608		-	~~INVESTMENTS IN~~ A ~~BUS INESS THAT NO LONGER MEETS~~ THE ~~DEFINITION OF A 23~~
4609		-	~~QUALIFIED BUSINESS ; and 24~~
4610		-
4611		-	~~(3)~~ the ~~procedures for the appointment of investment committee members. 25~~
4612		-
4613		-	~~10–415. 26~~
4614		-
4615		-	~~(a) (1) On or before October 1 of each year, the Corporation shall report to the 27~~
4616		-	~~Governor[, the Maryland Economic Development Commission,] and,~~ in ~~accordance with § 28~~
4617		-	~~2–1257~~ of ~~the State Government Article~~, ~~the General Assembly.~~ 29 ~~SENATE BILL 427~~ 97
4618		-
4619		-
4620		-
4621		-	~~(2) The report required under this subsection shall include:~~ 1
4622		-
4623		-	(i) ~~a complete operating and financial statement covering the~~ 2
4624		-	Corporation~~’s operations;~~ 3
4625		-
4626		-	~~(ii) a summary of the Corporation’s activities during the preceding 4~~
4627		-	~~fiscal year;~~ 5
4628		-
4629		-	~~(iii) information on all salaries and any incentives approved by the 6~~
4630		-	~~Board for~~ Corporation ~~employees; 7~~
4631		-
4632		-	(iv) ~~information on outreach,~~ ~~training, mentorship, support,~~ and 8
4633		-	investment ~~in minority and women–owned qualified businesses,~~ ~~including support for 9~~
4634		-	~~marketing by the Maryland [Small Business Development Financing Authority ] 10~~
4635		-	~~ECONOMIC INCLUSION FUND; 11~~
4636		-
4637		-	~~(v) information on entities that have current investments and 12~~
4638		-	~~entities that received funding or investments~~ in the ~~current year on~~ the: 13
4639		-
4640		-	~~1. principal business operations;~~ 14
4641		-
4642		-	~~2. number of employees in the State and the number of 15~~
4643		-	~~employees outside the State;~~ 16
4644		-
4645		-	~~3. capital~~ or ~~other investments made in~~ the ~~State; and~~ 17
4646		-
4647		-	~~4. proposed~~ and ~~actual job creation or capital investment~~ in 18
4648		-	~~the State as a result of~~ the ~~investment or support;~~ 19
4649		-
4650		-	(vi) a ~~list of businesses that have received funding that would no 20~~
4651		-	~~longer qualify as a qualified business;~~ ~~and 21~~
4652		-
4653		-	~~(vii) information on the creation of and appointments made to an 22~~
4654		-	~~advisory committee and the responsibilities of the advisory committee and members of the 23~~
4655		-	~~committee~~. 24
4656		-
4657		-	(b) ~~(1) On~~ or ~~before October 1 each year, beginning in 2023, and every 6~~ 25
4658		-	~~months thereafter, the Corporation shall report to the Governor[, the~~ Maryland Economic 26
4659		-	~~Development Commission,] and,~~ in ~~accordance with § 2–1257 of the State Government~~ 27
4660		-	~~Article~~, ~~the Joint Audit and Evaluation Committee and the General Assembly.~~ 28
4661		-
4662		-	~~(2) The report required under~~ this ~~subsection shall include a list of the 29~~
4663		-	~~qualified businesses or other businesses receiving support through programs administered 30~~
4664		-	~~by the Corporation,~~ ~~including those receiving investments made under § 21–123.2 of the~~ 31
4665		-	~~State Personnel and Pensions~~ Article. 32
	4586	+	(iv) proposed job creation or capital investment in the State as a 1
	4587	+	result of the investment or support. 2
	4588	+
	4589	+	(c) (1) On or before October 1, 2024, and each October 1 thereafter, the 3
	4590	+	Corporation shall report to the Governor, the Maryland Economic Development 4
	4591	+	Commission, and, in accordance with § 2–1257 of the State Government Article, the 5
	4592	+	General Assembly on the following information from the immediately preceding fiscal year: 6
	4593	+
	4594	+	(i) the number of applications the Corporation received; 7
	4595	+
	4596	+	(ii) the amount of investment funding that was available at the 8
	4597	+	beginning of the fiscal year; 9
	4598	+
	4599	+	(iii) the amount of investment funding that was available at the end 10
	4600	+	of the fiscal year; 11
	4601	+
	4602	+	(iv) the amount of investment funding that was requested; 12
	4603	+
	4604	+	(v) the number of applicants the Corporation invested in; and 13
	4605	+
	4606	+	(vi) the amount of investment funding the Commission awarded. 14
	4607	+
	4608	+	(2) The information reported in accordance with paragraph (1) of this 15
	4609	+	subsection shall: 16
	4610	+
	4611	+	(i) specify which applications and investments were from social 17
	4612	+	impact funds, seed funds, and the Maryland Venture Fund; and 18
	4613	+
	4614	+	(ii) if available, provide information that has been de–identified and 19
	4615	+	disaggregated on applicants and qualified business founders by race, ethnicity, age, gender, 20
	4616	+	disability status, veteran status, and geographic location and the degree to which 21
	4617	+	applicants and founders identify with more than one demographic category. 22
	4618	+
	4619	+	10–470. 23
	4620	+
	4621	+	(a) The Corporation may require that all or part of a grant be repaid, with interest 24
	4622	+	at a rate the Corporation sets, when conditions specified by the Corporation occur. 25
	4623	+
	4624	+	(b) (1) Whenever the Corporation is authorized by law to make a grant, 26
	4625	+	including a grant from the Economic Development Opportunities Program Account 27
	4626	+	authorized under § 7–314 of the State Finance and Procurement Article, the Corporation 28
	4627	+	may use money appropriated for the grant to make an equity investment in a qualified 29
	4628	+	business. 30
	4629	+
	4630	+	(2) (i) Except as provided in subparagraph (ii) of this paragraph and 31
	4631	+	Subtitle 4A of this title, in making an equity investment under this subtitle or Subtitle 4A 32
	4632	+	of this title, the Corporation may not acquire an ownership interest in an enterprise that 33 SENATE BILL 427 97
	4633	+
	4634	+
	4635	+	exceeds 25%. 1
	4636	+
	4637	+	(ii) In making an equity investment under this subtitle or Subtitle 2
	4638	+	4A of this title in one or more venture or private equity firms, the Corporation may acquire 3
	4639	+	an ownership interest exceeding 25%. 4
	4640	+
	4641	+	(3) Within 15 years after making an equity investment under this subtitle 5
	4642	+	or Subtitle 4A of this title, the Corporation [shall], ON REVIEW AND APPROV AL OF THE 6
	4643	+	CORPORATION ’S INVESTMENT COMMITT EE, MAY divest itself of that investment OR 7
	4644	+	PURSUE ANOTHER REMEDY THAT IS IN THE CORPORATION ’S BEST INTEREST . 8
	4645	+
	4646	+	(4) The liability of the State and the Corporation in making an equity 9
	4647	+	investment under this subtitle or Subtitle 4A of this title is limited to the amount of that 10
	4648	+	investment. 11
	4649	+
	4650	+	10–501. 12
	4651	+
	4652	+	(a) In this subtitle the following words have the meanings indicated. 13
	4653	+
	4654	+	(f) “Corporation” means the Maryland Agricultural and Resource –Based 14
	4655	+	Industry Development Corporation. 15
	4656	+
	4657	+	10–528. 16
	4658	+
	4659	+	(a) On or before October 1 of each year, the Corporation shall report on its status 17
	4660	+	to the Governor, the Maryland Agricultural Commission[, the Maryland Economic 18
	4661	+	Development Commission,] and, in accordance with § 2–1257 of the State Government 19
	4662	+	Article, the General Assembly. 20
	4663	+
	4664	+	(b) The report shall include a complete operating and financial statement and a 21
	4665	+	summary of the Corporation’s activities during the preceding fiscal year. 22
	4666	+
	4667	+	12–201. 23
	4668	+
	4669	+	(a) In this subtitle the following words have the meanings indicated. 24
	4670	+
	4671	+	(k) “MEDCO obligation” means a bond, note, or other similar instrument that the 25
	4672	+	Maryland Economic Development Corporation issues under authority other than this 26
	4673	+	subtitle to finance the cost of infrastructure improvements located in or supporting a 27
	4674	+	transit–oriented development, a sustainable community, a RISE zone, [or] a State hospital 28
	4675	+	redevelopment, OR A PROJECT ALLOWABLE UN DER THE BUILD OUR FUTURE 29
	4676	+	PROGRAM ESTABLISHED B Y § 10–150 OF THIS ARTICLE . 30
	4677	+
	4678	+	(p) “RISE zone” means an area designated as a Regional Institution Strategic 31
	4679	+	Enterprise zone under [§ 5–1404] § 10–140 of this article. 32
4666	4680		98 SENATE BILL 427
4667	4681
4668	4682
4669		-	~~(3) The list of qualified businesses or other businesses receiving support~~ 1
4670		-	~~shall include for each business: 2~~
4671		-
4672		-	~~(i) the number of employees in the State;~~ 3
4673		-
4674		-	(ii) ~~the number of employees outside the State;~~ 4
4675		-
4676		-	~~(iii) the capital or other investments made in the State; and 5~~
4677		-
4678		-	~~(iv) proposed job creation~~ or ~~capital investment in the State as a 6~~
4679		-	~~result of the investment or support. 7~~
4680		-
4681		-	~~(c) (1) On~~ or ~~before October 1,~~ ~~2024, and each October 1 thereafter, the 8~~
4682		-	~~Corporation shall report to the Governor, the Maryland Economic Development 9~~
4683		-	~~Commission, and,~~ ~~in accordance with § 2–1257 of the State Government Article, the~~ 10
4684		-	~~General Assembly on the following information from the immediately preceding fiscal year: 11~~
4685		-
4686		-	~~(i) the number of applications the Corporation received; 12~~
4687		-
4688		-	~~(ii) the amount of investment funding that was available at the 13~~
4689		-	~~beginning of the fiscal year;~~ 14
4690		-
4691		-	~~(iii) the amount of investment funding that was available at the end 15~~
4692		-	of the ~~fiscal year~~; 16
4693		-
4694		-	(iv) ~~the amount of investment funding that was requested~~; 17
4695		-
4696		-	(v) ~~the number of applicants the Corporation invested in~~; ~~and 18~~
4697		-
4698		-	(vi) ~~the amount of investment funding the Commission awarded.~~ 19
4699		-
4700		-	(2) ~~The information reported in accordance with paragraph (1) of this 20~~
4701		-	~~subsection shall: 21~~
4702		-
4703		-	~~(i) specify which applications and investments were from social 22~~
4704		-	~~impact funds,~~ ~~seed funds,~~ and ~~the Maryland Venture Fund;~~ ~~and 23~~
4705		-
4706		-	~~(ii) if available, provide information that has been de–identified and 24~~
4707		-	~~disaggregated on applicants and qualified business founders by race,~~ ~~ethnicity, age,~~ ~~gender, 25~~
4708		-	~~disability status,~~ ~~veteran status,~~ ~~and geographic location and the degree to which 26~~
4709		-	~~applicants and founders identify with more than one demographic category. 27~~
4710		-
4711		-	~~10–470. 28~~
4712		-
4713		-	~~(a) The Corporation may require that all or part of a grant be repaid, with interest 29~~
4714		-	~~at a rate the Corporation sets,~~ ~~when conditions specified by the Corporation occur. 30~~
	4683	+	12–207. 1
	4684	+
	4685	+	(a) Except as provided in subsections (b) and (e) of this section, bond proceeds 2
	4686	+	may be used only: 3
	4687	+
	4688	+	(1) to buy, lease, condemn, or otherwise acquire property, or an interest in 4
	4689	+	property: 5
	4690	+
	4691	+	(i) in the development district, a RISE zone, or a sustainable 6
	4692	+	community; or 7
	4693	+
	4694	+	(ii) needed for a right–of–way or other easement to or from the 8
	4695	+	development district, a RISE zone, or a sustainable community; 9
	4696	+
	4697	+	(2) for site removal; 10
	4698	+
	4699	+	(3) for surveys and studies; 11
	4700	+
	4701	+	(4) to relocate businesses or residents; 12
	4702	+
	4703	+	(5) to install utilities, construct parks and playgrounds, and for other 13
	4704	+	needed improvements including: 14
	4705	+
	4706	+	(i) roads to, from, or in the development district; 15
	4707	+
	4708	+	(ii) parking; and 16
	4709	+
	4710	+	(iii) lighting; 17
	4711	+
	4712	+	(6) to construct or rehabilitate buildings for a governmental purpose or use; 18
	4713	+
	4714	+	(7) for reserves or capitalized interest; 19
	4715	+
	4716	+	(8) for necessary costs to issue bonds; and 20
	4717	+
	4718	+	(9) to pay the principal of and interest on loans, advances, or indebtedness 21
	4719	+	that a political subdivision incurs for a purpose specified in this section. 22
	4720	+
	4721	+	(b) (1) This subsection applies to a sustainable community identified under § 23
	4722	+	12–203 of this subtitle. 24
	4723	+
	4724	+	(2) In addition to the purposes under subsection (a) of this section and 25
	4725	+	without limiting the purposes in subsection (a) of this section, bond proceeds may be used 26
	4726	+	in a sustainable community for: 27
	4727	+
	4728	+	(i) historic preservation or rehabilitation; 28
4715	4729		SENATE BILL 427 99
4716	4730
4717	4731
4718		-	(b) (1) Whenever the Corporation is authorized by law to make a grant, 1
4719		-	including a grant from the Economic Development Opportunities Program Account 2
4720		-	authorized under § 7–314 of the State Finance and Procurement Article, the Corporation 3
4721		-	may use money appropriated for the grant to make an equity investment in a qualified 4
4722		-	business. 5
4723		-
4724		-	(2) (i) Except as provided in subparagraph (ii) of this paragraph and 6
4725		-	Subtitle 4A of this title, in making an equity investment under this subtitle or Subtitle 4A 7
4726		-	of this title, the Corporation may not acquire an ownership interest in an enterprise that 8
4727		-	exceeds 25%. 9
4728		-
4729		-	(ii) In making an equity investment under this subtitle or Subtitle 10
4730		-	4A of this title in one or more venture or private equity firms, the Corporation may acquire 11
4731		-	an ownership interest exceeding 25%. 12
4732		-
4733		-	(3) Within 15 years after making an equity investment under this subtitle 13
4734		-	or Subtitle 4A of this title, the Corporation [shall], ON REVIEW AND APPROV AL OF THE 14
4735		-	CORPORATION ’S INVESTMENT COMMITT EE, MAY divest itself of that investment OR 15
4736		-	PURSUE ANOTHER REMED Y THAT IS IN THE CORPORATION ’S BEST INTEREST . 16
4737		-
4738		-	(4) The liability of the State and the Corporation in making an equity 17
4739		-	investment under this subtitle or Subtitle 4A of this title is limited to the amount of that 18
4740		-	investment. 19
4741		-
4742		-	10–501. 20
4743		-
4744		-	(a) In this subtitle the following words have the meanings indicated. 21
4745		-
4746		-	(f) “Corporation” means the Maryland Agricultural and Resource –Based 22
4747		-	Industry Development Corporation. 23
4748		-
4749		-	10–528. 24
4750		-
4751		-	(a) On or before October 1 of each year, the Corporation shall report on its status 25
4752		-	to the Governor, the Maryland Agricultural Commission[, the Maryland Economic 26
4753		-	Development Commission,] and, in accordance with § 2–1257 of the State Government 27
4754		-	Article, the General Assembly. 28
4755		-
4756		-	(b) The report shall include a complete operating and financial statement and a 29
4757		-	summary of the Corporation’s activities during the preceding fiscal year. 30
4758		-
4759		-	12–201. 31
4760		-
4761		-	(a) In this subtitle the following words have the meanings indicated. 32
4762		-
4763		-	(k) “MEDCO obligation” means a bond, note, or other similar instrument that the 33
4764		-	Maryland Economic Development Corporation issues under authority other than this 34 100 SENATE BILL 427
4765		-
4766		-
4767		-	subtitle to finance the cost of infrastructure improvements located in or supporting a 1
4768		-	transit–oriented development, a sustainable community, a RISE zone, [or] a State hospital 2
4769		-	redevelopment, OR A PROJECT ALLOWAB LE UNDER THE BUILD OUR FUTURE 3
4770		-	PROGRAM ESTABLISHED B Y § 10–150 OF THIS ARTICLE . 4
4771		-
4772		-	(p) “RISE zone” means an area designated as a Regional Institution Strategic 5
4773		-	Enterprise zone under [§ 5–1404] § 10–140 of this article. 6
4774		-
4775		-	12–207. 7
4776		-
4777		-	(a) Except as provided in subsections (b) and (e) of this section, bond proceeds 8
4778		-	may be used only: 9
4779		-
4780		-	(1) to buy, lease, condemn, or otherwise acquire property, or an interest in 10
4781		-	property: 11
4782		-
4783		-	(i) in the development district, a RISE zone, or a sustainable 12
4784		-	community; or 13
4785		-
4786		-	(ii) needed for a right–of–way or other easement to or from the 14
4787		-	development district, a RISE zone, or a sustainable community; 15
4788		-
4789		-	(2) for site removal; 16
4790		-
4791		-	(3) for surveys and studies; 17
4792		-
4793		-	(4) to relocate businesses or residents; 18
4794		-
4795		-	(5) to install utilities, construct parks and playgrounds, and for other 19
4796		-	needed improvements including: 20
4797		-
4798		-	(i) roads to, from, or in the development district; 21
4799		-
4800		-	(ii) parking; and 22
4801		-
4802		-	(iii) lighting; 23
4803		-
4804		-	(6) to construct or rehabilitate buildings for a governmental purpose or use; 24
4805		-
4806		-	(7) for reserves or capitalized interest; 25
4807		-
4808		-	(8) for necessary costs to issue bonds; and 26
4809		-
4810		-	(9) to pay the principal of and interest on loans, advances, or indebtedness 27
4811		-	that a political subdivision incurs for a purpose specified in this section. 28
4812		-	SENATE BILL 427 101
4813		-
4814		-
4815		-	(b) (1) This subsection applies to a sustainable community identified under § 1
4816		-	12–203 of this subtitle. 2
4817		-
4818		-	(2) In addition to the purposes under subsection (a) of this section and 3
4819		-	without limiting the purposes in subsection (a) of this section, bond proceeds may be used 4
4820		-	in a sustainable community for: 5
4821		-
4822		-	(i) historic preservation or rehabilitation; 6
4823		-
4824		-	(ii) environmental remediation, demolition, and site preparation; 7
4825		-
4826		-	(iii) parking lots, facilities, or structures of any type whether for 8
4827		-	public or private use; 9
4828		-
4829		-	(iv) highways as defined in § 8–101 of the Transportation Article or 10
4830		-	transit service as defined in § 7–101 of the Transportation Article that support sustainable 11
4831		-	communities; 12
4832		-
4833		-	(v) schools; 13
4834		-
4835		-	(vi) affordable or mixed income housing; [and] 14
4836		-
4837		-	(vii) stormwater management and storm drain facilities; AND 15
4838		-
4839		-	(VIII) INNOVATION CENTERS , SENSITIVE COMPARTMEN TED 16
4840		-	INFORMATION FACILITI ES, AND STRUCTURES OF ANY TY PE THAT SUPPORT THE 17
4841		-	RETENTION, EXPANSION, OR ATTRACTION OF BUS INESS ACTIVITIES INC LUDED ON 18
4842		-	THE LIST OF INDUSTRI ES AND ACTIVITIES DE VELOPED BY THE DEPARTMENT IN 19
4843		-	ACCORDANCE WITH § 2.5–106 OF THIS ARTICLE . 20
4844		-
4845		-	(e) (1) This subsection applies to a RISE zone identified under § 12–203 of this 21
4846		-	subtitle. 22
4847		-
4848		-	(2) In addition to the purposes under subsection (a) of this section and 23
4849		-	without limiting the purposes in subsection (a) of this section, bond proceeds may be used 24
4850		-	in a RISE zone for: 25
4851		-
4852		-	(i) historic preservation or rehabilitation; 26
4853		-
4854		-	(ii) environmental remediation, demolition, and site preparation; 27
4855		-
4856		-	(iii) parking lots, facilities, or structures of any type whether for 28
4857		-	public or private use; 29
4858		-
4859		-	(iv) schools; 30
	4732	+	(ii) environmental remediation, demolition, and site preparation; 1
	4733	+
	4734	+	(iii) parking lots, facilities, or structures of any type whether for 2
	4735	+	public or private use; 3
	4736	+
	4737	+	(iv) highways as defined in § 8–101 of the Transportation Article or 4
	4738	+	transit service as defined in § 7–101 of the Transportation Article that support sustainable 5
	4739	+	communities; 6
	4740	+
	4741	+	(v) schools; 7
	4742	+
	4743	+	(vi) affordable or mixed income housing; [and] 8
	4744	+
	4745	+	(vii) stormwater management and storm drain facilities; AND 9
	4746	+
	4747	+	(VIII) INNOVATION CENTERS , SENSITIVE COMPARTMEN TED 10
	4748	+	INFORMATION FACILITI ES, AND STRUCTURES OF AN Y TYPE THAT SUPPORT THE 11
	4749	+	RETENTION, EXPANSION, OR ATTRACTION OF BUS INESS ACTIVITIES INC LUDED ON 12
	4750	+	THE LIST OF INDUSTRI ES AND ACTIVITIES DE VELOPED BY THE DEPARTMENT IN 13
	4751	+	ACCORDANCE WITH § 2.5–106 OF THIS ARTICLE . 14
	4752	+
	4753	+	(e) (1) This subsection applies to a RISE zone identified under § 12–203 of this 15
	4754	+	subtitle. 16
	4755	+
	4756	+	(2) In addition to the purposes under subsection (a) of this section and 17
	4757	+	without limiting the purposes in subsection (a) of this section, bond proceeds may be used 18
	4758	+	in a RISE zone for: 19
	4759	+
	4760	+	(i) historic preservation or rehabilitation; 20
	4761	+
	4762	+	(ii) environmental remediation, demolition, and site preparation; 21
	4763	+
	4764	+	(iii) parking lots, facilities, or structures of any type whether for 22
	4765	+	public or private use; 23
	4766	+
	4767	+	(iv) schools; 24
	4768	+
	4769	+	(v) affordable or mixed income housing; 25
	4770	+
	4771	+	(vi) stormwater management and storm drain facilities; 26
	4772	+
	4773	+	(vii) innovation centers, SENSITIVE COMPARTMENT ED 27
	4774	+	INFORMATION FACILITIES, and laboratory facilities, or structures of any type whether 28
	4775	+	for public or private use, including maintenance and installation of improvements in the 29
	4776	+	structures and services that support the purposes of the RISE zone program; and 30
	4777	+	100 SENATE BILL 427
	4778	+
	4779	+
	4780	+	(viii) any other facilities or structures of any type whether for public 1
	4781	+	or private use that support the purposes of the RISE zone program. 2
	4782	+
	4783	+	16–102. 3
	4784	+
	4785	+	(d) (2) Any money that has not been distributed or awarded on or before 4
	4786	+	December 31, 2024, shall revert to the Maryland Economic [Development Assistance] 5
	4787	+	COMPETITIVENESS Fund. 6
	4788	+
	4789	+	Article – Corporations and Associations 7
	4790	+
	4791	+	1–203. 8
	4792	+
	4793	+	(b) (14) BEGINNING IN FISCAL Y EAR 2026, THE DEPARTMENT SHALL 9
	4794	+	WAIVE THE FILING FEE FOR A BUSINESS ENTIT Y DESCRIBED UNDER PARA GRAPH 10
	4795	+	(3)(II) OF THIS SUBSECTION F OR EACH YEAR THAT TH E ENTITY PROVIDES EV IDENCE 11
	4796	+	TO THE DEPARTMENT THAT THE E NTITY: 12
	4797	+
	4798	+	(I) HAS LOCATED WITHIN A REGIONAL INSTITUTION 13
	4799	+	STRATEGIC ENTERPRISE ZONE THAT IS DESIGNATED UNDER TITLE 10, SUBTITLE 1 14
	4800	+	OF THE ECONOMIC DEVELOPMENT ARTICLE WITHIN 3 YEARS OF THE DATE BY 15
	4801	+	WHICH THE FILING FEE IS DUE; AND 16
	4802	+
	4803	+	(II) IS ENCOMPASSED BY THE INDUSTRY SECTORS AND 17
	4804	+	ACTIVITIES INCLUDED ON THE LIST DEVELOPE D BY THE DEPARTMENT OF 18
	4805	+	COMMERCE IN ACCORDANC E WITH § 2.5–106 OF THE ECONOMIC DEVELOPMENT 19
	4806	+	ARTICLE. 20
	4807	+
	4808	+	[(14)] (15) There is no processing fee for documents filed to dissolve, cancel, 21
	4809	+	or terminate an entity under this subsection. 22
	4810	+
	4811	+	Article – Education 23
	4812	+
	4813	+	9.5–113.1. 24
	4814	+
	4815	+	(a) (1) In this section the following words have the meanings indicated. 25
	4816	+
	4817	+	(2) “CHILD CARE SLOT ” MEANS SPACE AVAILABL E FOR A CHILD TO 26
	4818	+	ENROLL FOR A FULL 8–HOUR DAY OF CHILD CA RE. 27
	4819	+
	4820	+	(3) “ENOUGH ELIGIBLE NEIGHBORHOO D” MEANS AN AREA THAT 28
	4821	+	HAS BEEN DESIGNATED IN ACCORDANCE WITH § 9–2803 OF THE STATE 29
	4822	+	GOVERNMENT ARTICLE. 30
	4823	+
	4824	+	[(2)] (4) “Fund” means the Child Care Capital Support Revolving Loan 31 SENATE BILL 427 101
	4825	+
	4826	+
	4827	+	Fund. 1
	4828	+
	4829	+	[(3)] (5) “Rural community” has the meaning stated in § 2–207 of the 2
	4830	+	State Finance and Procurement Article. 3
	4831	+
	4832	+	(6) “SECRETARY” MEANS THE SECRETARY OF COMMERCE. 4
	4833	+
	4834	+	(b) There is a Child Care Capital Support Revolving Loan Fund. 5
	4835	+
	4836	+	(c) The purpose of the Fund is to provide no–interest loans for capital expenses 6
	4837	+	to child care providers who participate in the Child Care Scholarship Program under § 7
	4838	+	9.5–113 of this subtitle. 8
	4839	+
	4840	+	(d) The Department of Commerce shall administer the Fund with support from 9
	4841	+	the Department. 10
	4842	+
	4843	+	(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 11
	4844	+	the State Finance and Procurement Article that shall be available in perpetuity for the 12
	4845	+	purpose of providing loans in accordance with the provisions of this section. 13
	4846	+
	4847	+	(2) The State Treasurer shall hold the Fund separately, and the 14
	4848	+	Comptroller shall account for the Fund. 15
	4849	+
	4850	+	(f) The Fund consists of: 16
	4851	+
	4852	+	(1) Money appropriated in the State budget to the Fund; 17
	4853	+
	4854	+	(2) Any interest earnings of the Fund; 18
	4855	+
	4856	+	(3) Repayments of principal and interest from loans made from the Fund; 19
	4857	+	and 20
	4858	+
	4859	+	(4) Any other money from any other source accepted for the benefit of the 21
	4860	+	Fund. 22
	4861	+
	4862	+	(g) (1) The Fund may be used only to provide no–interest loans to child care 23
	4863	+	providers for capital expenses related to a child care facility, including: 24
	4864	+
	4865	+	(i) Acquisition; 25
	4866	+
	4867	+	(ii) Expansion; 26
	4868	+
	4869	+	(iii) [Renovations; and 27
	4870	+
	4871	+	(iv)] New construction; AND 28
4860	4872		102 SENATE BILL 427
4861	4873
4862	4874
4863		-	(v) affordable or mixed income housing; 1
4864		-
4865		-	(vi) stormwater management and storm drain facilities; 2
4866		-
4867		-	(vii) innovation centers, SENSITIVE COMPARTMEN TED 3
4868		-	INFORMATION FACILITI ES, and laboratory facilities, or structures of any type whether 4
4869		-	for public or private use, including maintenance and installation of improvements in the 5
4870		-	structures and services that support the purposes of the RISE zone program; and 6
4871		-
4872		-	(viii) any other facilities or structures of any type whether for public 7
4873		-	or private use that support the purposes of the RISE zone program. 8
4874		-
4875		-	16–102. 9
4876		-
4877		-	(d) (2) Any money that has not been distributed or awarded on or before 10
4878		-	December 31, 2024, shall revert to the Maryland Economic [Development Assistance] 11
4879		-	COMPETITIVENESS Fund. 12
4880		-
4881		-	Article – Corporations and Associations 13
4882		-
4883		-	1–203. 14
4884		-
4885		-	(b) (14) BEGINNING IN FISCAL Y EAR 2026, THE DEPARTMENT SHALL 15
4886		-	WAIVE THE FILING FEE FOR A BUSINESS ENTIT Y DESCRIBED UNDER PA RAGRAPH 16
4887		-	(3)(II) OF THIS SUBSECTION F OR EACH YEAR THAT TH E ENTITY PROVIDES EV IDENCE 17
4888		-	TO THE DEPARTMENT THAT THE E NTITY: 18
4889		-
4890		-	(I) HAS LOCATED WITHIN A REGIONAL INSTITUTION 19
4891		-	STRATEGIC ENTERPRISE ZONE THAT IS DESIGNATED UNDER TITLE 10, SUBTITLE 1 20
4892		-	OF THE ECONOMIC DEVELOPMENT ARTICLE WITHIN 3 YEARS OF THE DATE BY 21
4893		-	WHICH THE FILING FEE IS DUE; AND 22
4894		-
4895		-	(II) IS ENCOMPASSED BY THE INDUSTRY SECTORS AND 23
4896		-	ACTIVITIES INCLUDED ON THE LIST DEVELOPE D BY THE DEPARTMENT OF 24
4897		-	COMMERCE IN ACCORDANC E WITH § 2.5–106 OF THE ECONOMIC DEVELOPMENT 25
4898		-	ARTICLE. 26
4899		-
4900		-	[(14)] (15) There is no processing fee for documents filed to dissolve, cancel, 27
4901		-	or terminate an entity under this subsection. 28
4902		-
4903		-	Article – Education 29
4904		-
4905		-	9.5–113.1. 30
	4875	+	(IV) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, 1
	4876	+	RENOVATIONS . 2
	4877	+
	4878	+	[(2) (i) Except as provided in subparagraph (ii) of this paragraph, child 3
	4879	+	care providers shall repay loans from the Fund not later than 5 years after receiving a loan 4
	4880	+	from the Fund. 5
	4881	+
	4882	+	(ii) The Department of Commerce may establish a financial 6
	4883	+	hardship exemption to allow a child care provider additional time to repay a loan from the 7
	4884	+	Fund. 8
	4885	+
	4886	+	(iii) If a hardship exemption is not granted, the Department of 9
	4887	+	Commerce shall apply its normal policy regarding assisting child care providers with past 10
	4888	+	due loan payments.] 11
	4889	+
	4890	+	(2) LOANS PROVIDED FOR RE NOVATIONS UNDER PAR AGRAPH (1)(IV) 12
	4891	+	OF THIS SUBSECTION M AY: 13
	4892	+
	4893	+	(I) BE PROVIDED ONLY TO A FAMILY CHILD CARE HO ME OR 14
	4894	+	LARGE FAMILY CHILD C ARE HOME; AND 15
	4895	+
	4896	+	(II) BE PROVIDED ONLY FOR RENOVATIONS NECESSAR Y TO 16
	4897	+	MAINTAIN LICENSURE B Y THE DEPARTMENT AS DEMONST RATED THROUGH 17
	4898	+	DOCUMENTS R EQUIRED BY THE DEPARTMENT OF COMMERCE AND VERIFIED BY 18
	4899	+	THE DEPARTMENT . 19
	4900	+
	4901	+	(3) (I) THE TERM OF A LOAN FR OM THE FUND SHALL BE 20
	4902	+	DETERMINED BY THE DEPARTMENT OF COMMERCE. 21
	4903	+
	4904	+	(II) THE TERM SET BY THE DEPARTMENT OF COMMERCE SHALL 22
	4905	+	BE FOR NOT LESS THAN 5 YEARS. 23
	4906	+
	4907	+	(4) UP TO $50,000 OF A LOAN PROVIDED T O A FAMILY CHILD CAR E 24
	4908	+	HOME OR LARGE FAMILY CHIL D CARE HOME MAY BE CONVERTED TO A GRANT ON 25
	4909	+	APPROVAL BY THE DEPARTMENT OF COMMERCE IN ACCORDANC E WITH 26
	4910	+	SUBSECTION (I)(2) OF THIS SECTION. 27
	4911	+
	4912	+	(h) (1) The State Treasurer shall invest the money of the Fund in the same 28
	4913	+	manner as other State money may be invested. 29
	4914	+
	4915	+	(2) Any interest earnings of the Fund shall be credited to the Fund. 30
	4916	+
	4917	+	(i) (1) The Department of Commerce, in consultation with the Department, 31
	4918	+	shall establish application procedures and eligibility criteria for loans from the Fund, in 32
	4919	+	addition to the requirement that a child care provider be a participant in the Child Care 33 SENATE BILL 427 103
	4920	+
	4921	+
	4922	+	Scholarship Program under § 9.5–113 of this subtitle. 1
	4923	+
	4924	+	(2) [The] IN ORDER TO HAVE A LO AN OR PART OF A LOAN CONVERT ED 2
	4925	+	TO A GRANT UNDER SUBSECTION (G)(4) OF THIS SECTION , A FAMILY CHILD CARE 3
	4926	+	HOME OR LARGE FAMILY CHIL D CARE HOME SHALL DEMONSTRATE AT TAINMENT OF 4
	4927	+	AT LEAST A QUALITY R ATING 3 ON THE MARYLAND EXCELS PROGRAM. 5
	4928	+
	4929	+	(3) EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION , 6
	4930	+	THE Department OF COMMERCE shall prioritize applicant criteria in the following order 7
	4931	+	when providing funding from the Fund: 8
	4932	+
	4933	+	[(i) Child care providers that are located in: 9
	4934	+
	4935	+	1. Underserved communities; or 10
	4936	+
	4937	+	2. Areas designated by the Department as areas lacking 11
	4938	+	child care slots; 12
	4939	+
	4940	+	(ii) Child care providers that are located in rural communities; 13
	4941	+
	4942	+	(iii) Child care providers that serve primarily low –income 14
	4943	+	populations in areas of high poverty;] 15
	4944	+
	4945	+	(I) CHILD CARE PROVIDERS THAT WILL INCREASE THE 16
	4946	+	NUMBER OF AVAILABLE CHILD CARE SLOTS THE CHILD CARE PROVIDER MAY OFFER; 17
	4947	+
	4948	+	(II) CHILD CARE PROVIDERS THAT ARE LOCATED IN AREAS 18
	4949	+	IDENTIFIED BY THE DEPARTMENT AS LACKING CHILD CARE SLOTS ; 19
	4950	+
	4951	+	(III) CHILD CARE PROVIDERS THAT SERVE PRIMARILY IN AN 20
	4952	+	ENOUGH ELIGIBLE NEIGHBORHOO D; 21
	4953	+
	4954	+	(iv) Child care providers that serve children with special needs; and 22
	4955	+
	4956	+	(v) Child care providers that serve children ages 2 and younger. 23
	4957	+
	4958	+	(4) (I) THE STATE SUPERINTENDENT AND TH E SECRETARY MAY 24
	4959	+	TEMPORARILY ALTER TH E PRIORITIZATION ORD ER OF APPLICATIONS T O BEST 25
	4960	+	MEET THE NEEDS OF TH E CHILD CARE INDUSTR Y AT A GIVEN TIME. 26
	4961	+
	4962	+	(II) SHOULD THE STATE SUPERINTENDENT AND TH E 27
	4963	+	SECRETARY CHOOSE TO A LTER THE PRIORITIZAT ION ORDER OF APPLICA TIONS, THE 28
	4964	+	NEW TEMP ORARY PRIORITIZATION ORDER SHALL BE COMMU NICATED ON THE 29
	4965	+	DEPARTMENT OF COMMERCE WEBSITE PRIO R TO ACCEPTING APPLI CATIONS. 30
	4966	+	104 SENATE BILL 427
	4967	+
	4968	+
	4969	+	(j) The Department of Commerce shall work with the Department to publicize 1
	4970	+	the availability of loans from the Fund and provide support to child care providers in 2
	4971	+	applying for loans from the Fund. 3
	4972	+
	4973	+	(k) (1) For fiscal year 2023, the Governor shall include in the annual budget 4
	4974	+	bill an appropriation to the Fund of $15,000,000. 5
	4975	+
	4976	+	(2) For fiscal year 2024, the Governor shall include in the annual budget 6
	4977	+	bill an appropriation to the Fund of $10,000,000. 7
	4978	+
	4979	+	Article – Housing and Community Development 8
	4980	+
	4981	+	4–509. 9
	4982	+
	4983	+	(a) (1) In this section the following words have the meanings indicated. 10
	4984	+
	4985	+	(2) “Anchor institution” means: 11
	4986	+
	4987	+	(i) an institution of higher education in the State, including 12
	4988	+	departments, foundations, and other entities of the institution; or 13
	4989	+
	4990	+	(ii) a hospital institution in the State, including departments, 14
	4991	+	foundations, and other entities of the institution, that: 15
	4992	+
	4993	+	1. has a group of at least five physicians who are organized 16
	4994	+	as a medical staff for the institution; 17
	4995	+
	4996	+	2. maintains facilities to provide, under the supervision of 18
	4997	+	the medical staff, diagnostic and treatment services for two or more unrelated individuals; 19
	4998	+	and 20
	4999	+
	5000	+	3. admits or retains the individuals for overnight care. 21
	5001	+
	5002	+	(3) “Blighted area” means an area in which a majority of buildings have 22
	5003	+	declined in productivity by reason of obsolescence, depreciation, or other causes to an extent 23
	5004	+	that they no longer justify fundamental repairs and adequate maintenance. 24
	5005	+
	5006	+	(4) “Fund” means the Seed Community Development Anchor Institution 25
	5007	+	Fund. 26
	5008	+
	5009	+	(5) “RISE ZONE CATCHMENT AREA” MEANS A GEOGRAPHIC A REA 27
	5010	+	LOCATED WITHIN A 5–MILE RADIUS OF THE CENTER POIN T OF A QUALIFIED 28
	5011	+	INSTITUTION THAT IS LOCATED IN AN ACTIVE REGIONAL INSTITUTION STRATEGIC 29
	5012	+	ENTERPRISE ZONE DESIGNATED UNDER TITLE 10, SUBTITLE 1 OF THE ECONOMIC 30
	5013	+	DEVELOPMENT ARTICLE. 31
	5014	+	SENATE BILL 427 105
	5015	+
	5016	+
	5017	+	(6) “Sustainable community” means an area designated as a sustainable 1
	5018	+	community under § 6–205 of this article. 2
	5019	+
	5020	+	(b) There is a Seed Community Development Anchor Institution Fund. 3
	5021	+
	5022	+	(c) The purpose of the Fund is to provide grants and loans to anchor institutions 4
	5023	+	for community development projects in RISE ZONE CATCHMENT AREAS, sustainable 5
	5024	+	communities, and blighted areas of the State. 6
	5025	+
	5026	+	(d) The Department shall administer the Fund. 7
	5027	+
	5028	+	(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 8
	5029	+	the State Finance and Procurement Article. 9
	5030	+
	5031	+	(2) The State Treasurer shall hold the Fund s eparately, and the 10
	5032	+	Comptroller shall account for the Fund. 11
	5033	+
	5034	+	(f) The Fund consists of: 12
	5035	+
	5036	+	(1) money appropriated in the State budget to the Fund; 13
	5037	+
	5038	+	(2) interest earnings of the Fund; and 14
	5039	+
	5040	+	(3) any other money from any other source accepted for the benefit of the 15
	5041	+	Fund. 16
	5042	+
	5043	+	(g) (1) The Fund may be used only to provide grants and loans to anchor 17
	5044	+	institutions for community development projects in RISE ZONE CATCHMENT AREAS, 18
	5045	+	sustainable communities, and blighted areas of the State. 19
	5046	+
	5047	+	(2) To be eligible for a grant or loan, an anchor institution shall provide 20
	5048	+	evidence of matching funds. 21
	5049	+
	5050	+	(3) The Department shall award grants and loans from the Fund on a 22
	5051	+	competitive basis. 23
	5052	+
	5053	+	(4) WHEN PROVIDING GRANTS AND LOANS FROM THE FUND, THE 24
	5054	+	DEPARTMENT SHALL PRIO RITIZE APPLICANTS LOCATED IN A N ACTIVE REGIONAL 25
	5055	+	INSTITUTION STRATEGIC ENTERPRISE ZONE DESIGNATED UNDER TITLE 10, 26
	5056	+	SUBTITLE 1 OF THE ECONOMIC DEVELOPMENT ARTICLE. 27
	5057	+
	5058	+	(h) (1) The State Treasurer shall invest the money of the Fund in the same 28
	5059	+	manner as other State money may be invested. 29
	5060	+
	5061	+	(2) Any interest earnings of the Fund shall be credited to the Fund. 30
	5062	+	106 SENATE BILL 427
	5063	+
	5064	+
	5065	+	(i) Expenditures from the Fund may be made only in accordance with the State 1
	5066	+	budget. 2
	5067	+
	5068	+	(j) (1) For fiscal year 2019, the Governor shall include in the annual budget 3
	5069	+	bill or the capital budget bill an appropriation of $4,000,000 to the Fund. 4
	5070	+
	5071	+	(2) For fiscal year 2020, the Governor shall include in the annual budget 5
	5072	+	bill or the capital budget bill an appropriation of $5,000,000 for the Fund. 6
	5073	+
	5074	+	(3) (i) For fiscal year 2021, the Governor shall include in the annual 7
	5075	+	budget bill or the capital budget bill an appropriation of $5,000,000 for the Fund. 8
	5076	+
	5077	+	(ii) For fiscal year 2022 and each fiscal year thereafter, the Governor 9
	5078	+	shall include in the annual budget bill or the capital budget bill an appropriation of 10
	5079	+	$10,000,000 for the Fund. 11
	5080	+
	5081	+	6.5–107. 12
	5082	+
	5083	+	(e) The Fund consists of: 13
	5084	+
	5085	+	(2) money appropriated in the State budget to the Maryland Economic 14
	5086	+	[Development Assistance] COMPETITIVENESS Fund under Title 5, Subtitle 3 of the 15
	5087	+	Economic Development Article for the purpose of assisting in the establishment of 16
	5088	+	broadband communication services in rural and underserved areas of the State; 17
	5089	+
	5090	+	Article – State Finance and Procurement 18
	5091	+
	5092	+	7–314. 19
	5093	+
	5094	+	(a) (1) In this section the following words have the meanings indicated. 20
	5095	+
	5096	+	(2) [“Account” means the Economic Development Opportunities Program 21
	5097	+	Account.] “DEPARTMENT ” MEANS THE DEPARTMENT OF COMMERCE. 22
	5098	+
	5099	+	(3) [“Executive agency” means an executive department or agency in the 23
	5100	+	Executive Branch of State government, including all offices of the Executive Department 24
	5101	+	or agency directly responsible to the Governor. 25
	5102	+
	5103	+	(4)] “Extraordinary economic development opportunity” means the: 26
	5104	+
	5105	+	(i) attraction of a new private sector enterprise to the State or 27
	5106	+	retention or expansion of an existing private sector enterprise in the State that: 28
	5107	+
	5108	+	1. maintains a strong financial condition and minimal credit 29
	5109	+	risk profile; 30
	5110	+	SENATE BILL 427 107
	5111	+
	5112	+
	5113	+	2. is capable of accessing alternative sources of financing 1
	5114	+	through financial institutions or capital markets; 2
	5115	+
	5116	+	3. is consistent with the strategic plan of the State for 3
	5117	+	economic development; AND 4
	5118	+
	5119	+	4. creates or retains substantial employment, particularly in 5
	5120	+	areas of high unemployment; [and 6
	5121	+
	5122	+	5. invests in capital at a level equal to five times the value of 7
	5123	+	the incentive offered;] 8
	5124	+
	5125	+	(ii) retention or expansion of an existing public institution, private 9
	5126	+	institution, or federal research and development institute that: 10
	5127	+
	5128	+	1. is consistent with the strategic plan of the State for 11
	5129	+	economic development; and 12
	5130	+
	5131	+	2. creates or retains substantial employment, particularly in 13
	5132	+	areas of high unemployment; or 14
	5133	+
	5134	+	(iii) establishment or attraction of a public institution, a private 15
	5135	+	institution, or a federal research and development institute new to the State that: 16
	5136	+
	5137	+	1. is consistent with the strategic plan of the State for 17
	5138	+	economic development; and 18
	5139	+
	5140	+	2. creates or retains substantial employment, particularly in 19
	5141	+	areas of high unemployment. 20
	5142	+
	5143	+	(4) “FUND” MEANS THE STRATEGIC CLOSING FUND. 21
	5144	+
	5145	+	(5) (i) “Performance requirement” means a contractual agreement 22
	5146	+	between an executive agency and [an Account] A FUND recipient that requires the 23
	5147	+	[Account] FUND recipient to meet minimum economic development outcomes in exchange 24
	5148	+	for a grant or a loan under this section. 25
	5149	+
	5150	+	(ii) “Performance requirement” includes claw –back, penalty, 26
	5151	+	rescission, and recalibration clauses that utilize job creation, capital investment, and other 27
	5152	+	measures of economic development. 28
	5153	+
	5154	+	(6) “Private sector enterprise” means any commercia l, industrial, 29
	5155	+	educational, or research organization which is not a part of or controlled by a federal, State, 30
	5156	+	or local government agency. 31
	5157	+
	5158	+	(b) Subject to the provisions of this section, the [Economic Development 32 108 SENATE BILL 427
	5159	+
	5160	+
	5161	+	Opportunities Program Account] STRATEGIC CLOSING FUND is established WITHIN THE 1
	5162	+	DEPARTMENT to maximize extraordinary economic development opportunities. 2
	5163	+
	5164	+	(c) [Subject to subsection (r) of this section, the] THE Governor may provide an 3
	5165	+	appropriation in the budget bill to the [Account] FUND for a specific or general purpose or 4
	5166	+	purposes. 5
	5167	+
	5168	+	(d) After notice to and approval by the Legislative Policy Committee, the 6
	5169	+	Governor may transfer funds by budget amendment [from the Economic Development 7
	5170	+	Opportunities Program Account to the expenditure account of the appropriate executive 8
	5171	+	agency] TO THE FUND. 9
	5172	+
	5173	+	(e) (1) The [Account] FUND is a continuing, nonlapsing fund which is not 10
	5174	+	subject to § 7–302 of this subtitle. 11
	5175	+
	5176	+	(2) The Treasurer shall separately hold, and the Comptroller shall account 12
	5177	+	for, the [Account] FUND. 13
	5178	+
	5179	+	(3) The [Account] FUND shall be invested and reinvested in the same 14
	5180	+	manner as other State funds. 15
	5181	+
	5182	+	(4) [Except as provided in paragraph (5) of this subsection, any] ANY 16
	5183	+	investment earnings shall be subject to § 7–311(d) of this subtitle. 17
	5184	+
	5185	+	[(5) Any investment earnings on money transferred from the Account to a 18
	5186	+	second continuing, nonlapsing fund may be retained to the credit of the second fund.] 19
	5187	+
	5188	+	(f) (1) Money appropriated or credited to the [Account] FUND does not revert 20
	5189	+	to the Revenue Stabilization Account. 21
	5190	+
	5191	+	(2) [Except as provided in paragraph (3) of this subsection, repayments] 22
	5192	+	REPAYMENTS of principal or interest on any loan from the [Account] FUND shall be 23
	5193	+	retained to the credit of the [Account] FUND. 24
	5194	+
	5195	+	[(3) Repayments of principal or interest on any loan made from money 25
	5196	+	transferred from the Account to a second continuing, nonlapsing fund may be retained to 26
	5197	+	the credit of the second fund.] 27
	5198	+
	5199	+	(g) (1) The Department [of Commerce] shall include the following information 28
	5200	+	in the report that is required under § 2.5–109 of the Economic Development Article: 29
	5201	+
	5202	+	(i) the financial status of the program and a summary of its 30
	5203	+	operations for the preceding fiscal year; 31
	5204	+
	5205	+	(ii) for the previous 3 fiscal years, the status of [Account] FUND 32 SENATE BILL 427 109
	5206	+
	5207	+
	5208	+	disbursements for economic development projects reviewed by the Legislative Policy 1
	5209	+	Committee under this section; 2
	5210	+
	5211	+	(iii) for the previous 3 fiscal years, the status of job creation, capital 3
	5212	+	investment, and other measures of economic development for each economic development 4
	5213	+	project reviewed by the Legislative Policy Committee under this section; 5
	5214	+
	5215	+	(iv) a list of guidelines for the kinds of performance requirements 6
	5216	+	that may be negotiated with the loan or grant applicant; and 7
	5217	+
	5218	+	(v) an explanation of the job creation, capital investment, and other 8
	5219	+	measures of economic development described in items (i) through (iii) of this paragraph are 9
	5220	+	lower than negotiated according to subsection (h)(1) of this section. 10
	5221	+
	5222	+	(2) Upon receipt of the information that is required to be reported under 11
	5223	+	this subsection, the Legislative Policy Committee shall have 60 days to review and 12
	5224	+	comment on the information provided by the Department [of Commerce] under paragraph 13
	5225	+	(1) of this subsection, during which time the Department [of Commerce] shall provide any 14
	5226	+	additional information regarding the [Account] FUND as requested by the Legislative 15
	5227	+	Policy Committee. 16
	5228	+
	5229	+	(h) (1) Except as provided in paragraph (2) of this subsection and in subsection 17
	5230	+	(i) of this section, any funds transferred from the [Economic Development Opportunities 18
	5231	+	Program Account] FUND shall be used only for extraordinary economic development 19
	5232	+	opportunities that: 20
	5233	+
	5234	+	(i) meet the criteria provided in this section; 21
	5235	+
	5236	+	(ii) include performance requirements; and 22
	5237	+
	5238	+	(iii) in addition to the performance requirements under item (ii) of 23
	5239	+	this paragraph, include a performance requirement that utilizes a claw–back provision. 24
	5240	+
	5241	+	(2) The [Account] DEPARTMENT may UTILIZE THE FUND TO pay an 25
	5242	+	executive agency for administrative, legal, or actuarial expenses incurred by the [agency in 26
	5243	+	connection with transactions funded by transfers of money to the agency from the Account] 27
	5244	+	DEPARTMENT . 28
	5245	+
	5246	+	(i) (1) The Legislative Policy Committee may approve an economic 29
	5247	+	development opportunity that is not an extraordinary economic development opportunity 30
	5248	+	if the executive agency requesting the transfer of funds offers a detailed justification for the 31
	5249	+	exception. 32
	5250	+
	5251	+	(2) The Legislative Policy Committee shall give particular consideration to 33
	5252	+	an exception that would provide a significant economic development opportunity for an area 34
	5253	+	of the State that has a relatively high unemployment rate or relatively low per capita 35 110 SENATE BILL 427
	5254	+
	5255	+
	5256	+	income. 1
	5257	+
	5258	+	(j) [(1)] The Department of Commerce may modify the guidelines for the kinds 2
	5259	+	of performance requirements that may be negotiated with the loan or grant as needed, upon 3
	5260	+	approval of the Legislative Policy Committee. 4
	5261	+
	5262	+	[(2) An executive agency may depart from these guidelines as needed, upon 5
	5263	+	approval of the Legislative Policy Committee.] 6
	5264	+
	5265	+	(k) Subject to the provisions of this subtitle, funds [transferred] from the 7
	5266	+	[Economic Development Opportunities Program Account, to an executive agency,] FUND 8
	5267	+	may be loaned, granted, or invested for: 9
	5268	+
	5269	+	(1) assisting in the retention or expansion of existing private sector 10
	5270	+	enterprises, public or private institutions, or federal research and development institutes; 11
	5271	+
	5272	+	(2) assisting in the establishment or attraction of private sector 12
	5273	+	enterprises, public or private institutions, or federal research and development institutes 13
	5274	+	new to this State; or 14
	5275	+
	5276	+	(3) providing assistance where existing State or local programs lack 15
	5277	+	sufficient resources or are constrained by timing or program design from being utilized. 16
	5278	+
	5279	+	(l) [Upon submission to the Legislative Policy Committee of a proposed budget 17
	5280	+	amendment to transfer money from the Account, the Governor] BEFORE FUNDS FROM 18
	5281	+	THE FUND MAY BE LOANED , GRANTED, OR INVESTED IN ACCOR DANCE WITH 19
	5282	+	SUBSECTION (K) OF THIS SECTION , THE DEPARTMENT shall provide, subject to § 20
	5283	+	2–1257 of the State Government Article, to the Legislative Policy Committee: 21
	5284	+
	5285	+	(1) a detailed description of: 22
	5286	+
	5287	+	(i) the proposed use of the funds; 23
	5288	+
	5289	+	(ii) the manner in which the proposed use meets the criteria as set 24
	5290	+	forth in this section; 25
	5291	+
	5292	+	(iii) the degree to which the proposed use of funds will advance 26
	5293	+	statewide or local economic development strategies and objectives; and 27
	5294	+
	5295	+	(iv) the degree to which available sources of federal, State, local, and 28
	5296	+	private financial support have been sought and will be utilized; 29
	5297	+
	5298	+	(2) the terms, conditions, and performance requirements of any grant or 30
	5299	+	loan for which the funds are to be used; 31
	5300	+
	5301	+	(3) a comprehensive economic analysis of the proposed use of the funds 32 SENATE BILL 427 111
	5302	+
	5303	+
	5304	+	which estimates: 1
	5305	+
	5306	+	(i) the economic impact to the State and the local jurisdictions 2
	5307	+	affected; 3
	5308	+
	5309	+	(ii) a minimum level of net economic benefits to the public sector; 4
	5310	+
	5311	+	(iii) the number of jobs expected to be created as a result of the 5
	5312	+	proposed economic development project and the percentage of those jobs that are expected 6
	5313	+	to be held by Maryland residents; 7
	5314	+
	5315	+	(iv) the wage rates and benefit packages for the jobs expected to be 8
	5316	+	created as a result of the proposed economic development project; and 9
	5317	+
	5318	+	(v) any other appropriate financial or economic benefits; 10
	5319	+
	5320	+	(4) any other analysis or information that is requested by the Legislative 11
	5321	+	Policy Committee; and 12
	5322	+
	5323	+	(5) the date on which the executive agency expects to disburse the funds to 13
	5324	+	the proposed recipient. 14
	5325	+
	5326	+	(m) [If an executive agency fails to disburse transferred funds to a recipient within 15
	5327	+	1 year after the expected disbursement date presented to the Legislative Policy Committee 16
	5328	+	under subsection (l) of this section, the funds will revert back to the Account and the 17
	5329	+	Governor shall: 18
	5330	+
	5331	+	(1) resubmit the proposed budget amendment to transfer money from the 19
	5332	+	Account to the Legislative Policy Committee; and 20
	5333	+
	5334	+	(2) provide the Legislative Policy Committee with the information required 21
	5335	+	under subsection (l) of this section. 22
	5336	+
	5337	+	(n)] Funds appropriated to the [Economic Development Opportunities Program 23
	5338	+	Account] FUND may not be loaned, granted, or invested for: 24
	5339	+
	5340	+	(1) substituting for funds from other State or local programs for which a 25
	5341	+	project may be eligible and sufficient resources exist; 26
	5342	+
	5343	+	(2) projects which are not likely to attract or retain employment 27
	5344	+	opportunities; 28
	5345	+
	5346	+	(3) funding projects located outside the State; 29
	5347	+
	5348	+	(4) construction or land acquisition by the Maryland Stadium Authority; or 30
	5349	+
	5350	+	(5) funding for any sports activity or facility. 31 112 SENATE BILL 427
	5351	+
	5352	+
	5353	+
	5354	+	[(o) (1) This subsection does not apply to an economic development opportunity 1
	5355	+	located in an area designated as a qualified opportunity zone under § 1400Z–1 of the 2
	5356	+	Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico 3
	5357	+	County. 4
	5358	+
	5359	+	(2) In the case of an economic development opportunity located outside a 5
	5360	+	priority funding area as established under Title 5, Subtitle 7B of this article, the 6
	5361	+	Department shall first comply with the provisions of that subtitle before making a request 7
	5362	+	for approval by the Legislative Policy Committee under this section.] 8
	5363	+
	5364	+	[(p)] (N) [An executive agency] THE DEPARTMENT may approve changes to a 9
	5365	+	transaction approved by the Legislative Policy Committee as long as the changes do not 10
	5366	+	materially and adversely affect the overall position of the [executive agency] 11
	5367	+	DEPARTMENT in the transaction or the economic development benefits to be derived by 12
	5368	+	the State in the transaction. 13
	5369	+
	5370	+	[(q)] (O) (1) (i) In this subsection the following words have the meanings 14
	5371	+	indicated. 15
	5372	+
	5373	+	(ii) “Financial assistance” means a grant, loan, or investment 16
	5374	+	provided under this subsection that exceeds $100,000. 17
	5375	+
	5376	+	(iii) “Political subdivision” includes an agency or other 18
	5377	+	instrumentality of the political subdivision. 19
	5378	+
	5379	+	(2) This subsection does not apply to financial assistance used solely for the 20
	5380	+	purpose of acquiring real property or structures on real property. 21
	5381	+
	5382	+	(3) With respect to financial assistance under this section to a political 22
	5383	+	subdivision: 23
	5384	+
	5385	+	(i) if the political subdivision has a program for promoting 24
	5386	+	procurement opportunities among minority businesses that is acceptable to the 25
	5387	+	Department [of Commerce], the political subdivision shall apply the requirements of that 26
	5388	+	program to the procurement of goods or services made with the proceeds from the financial 27
	5389	+	assistance; but 28
	5390	+
	5391	+	(ii) if the political subdivision does not have a program that is 29
	5392	+	acceptable to the Department [of Commerce] under item (i) of this paragraph, the political 30
	5393	+	subdivision is subject to paragraph (4) of this subsection. 31
	5394	+
	5395	+	(4) (i) In this paragraph, “minority business enterprise” has the 32
	5396	+	meaning stated in § 14–301 of this article. 33
	5397	+
	5398	+	(ii) With respect to financial assistance under this section to an 34 SENATE BILL 427 113
	5399	+
	5400	+
	5401	+	entity other than a political subdivision, the entity shall agree to include in the agreement 1
	5402	+	providing the financial assistance a provision acceptable to the Department of Commerce 2
	5403	+	that would encourage the procurement from minority business enterprises of goods or 3
	5404	+	services purchased with the proceeds from the financial assistance. 4
	5405	+
	5406	+	(iii) In negotiating the provision required under subparagraph (ii) of 5
	5407	+	this paragraph, the Department of Commerce shall take into account relevant factors, 6
	5408	+	including: 7
	5409	+
	5410	+	1. the intended use of the proceeds from the financial 8
	5411	+	assistance; and 9
	5412	+
	5413	+	2. the feasibility of obtaining the required goods or services 10
	5414	+	from minority business enterprises. 11
	5415	+
	5416	+	(5) The Department of Commerce may require that a recipient of financial 12
	5417	+	assistance under this section submit to the Department of Commerce a list, or an updated 13
	5418	+	list, of the minority business enterprises from which goods or services were procured and 14
	5419	+	the nature and dollar amount of the goods or services. 15
	5420	+
	5421	+	[(r) For fiscal years 2019 through 2021, the Governor shall include in the annual 16
	5422	+	budget bill an appropriation of $5,000,000 to the Account to be used by the Department of 17
	5423	+	Commerce to provide conditional loans or grants to companies that meet the following 18
	5424	+	criteria: 19
	5425	+
	5426	+	(1) construction of company headquarters in the State with capital 20
	5427	+	expenditures of at least $500,000,000; and 21
	5428	+
	5429	+	(2) retention of company headquarters in the State with at least 3,250 22
	5430	+	eligible employees, consistent with a letter of intent entered into with the Department of 23
	5431	+	Commerce in October 2016.] 24
	5432	+
	5433	+	Article – State Government 25
	5434	+
	5435	+	9–1A–26. 26
	5436	+
	5437	+	(c) A jackpot won at a video lottery terminal that is not claimed by the winner 27
	5438	+	within 182 days after the jackpot is won shall: 28
	5439	+
	5440	+	(2) be distributed as follows: 29
	5441	+
	5442	+	(i) 2.5% to the [Small, Minority, and Women–Owned Businesses] 30
	5443	+	REINVEST FOR SUCCESS Account established under § 5–1501 of the Economic 31
	5444	+	Development Article; 32
	5445	+
	5446	+	9–1A–27. 33 114 SENATE BILL 427
	5447	+
	5448	+
	5449	+
	5450	+	(a) Except as provided in subsections (b) and (c) of this section and § 1
	5451	+	9–1A–26(a)(3) of this subtitle, on a properly approved transmittal prepared by the 2
	5452	+	Commission, the Comptroller shall pay the following amounts from the proceeds of video 3
	5453	+	lottery terminals at each video lottery facility: 4
	5454	+
	5455	+	(6) [(i) except as provided in items (ii) and (iii) of this item,] 1.5% to BE 5
	5456	+	DISTRIBUTED EQUALLY BETWEEN THE MARYLAND ECONOMIC INCLUSION FUND 6
	5457	+	ESTABLISHED UNDER § 5–505 OF THE ECONOMIC DEVELOPMENT ARTICLE AND the 7
	5458	+	[Small, Minority, and Women–Owned Businesses] REINVEST FOR SUCCESS Account 8
	5459	+	established under § 5–1501 of the Economic Development Article; 9
	5460	+
	5461	+	[(ii) for fiscal year 2018, 1.5% to the General Fund to pay a portion of 10
	5462	+	the costs of the grants provided under Chapters 6 and 607 of the Acts of the General 11
	5463	+	Assembly of 2017; and 12
	5464	+
	5465	+	(iii) for fiscal years 2019 and 2020, 1.5% to the Education Trust Fund 13
	5466	+	established under § 9–1A–30 of this subtitle;] 14
	5467	+
	5468	+	(c) (1) For the first 10 years of operations at a video lottery facility in Allegany 15
	5469	+	County, on a properly approved transmittal prepared by the Commission, the Comptroller 16
	5470	+	shall pay the following amounts from the proceeds of video lottery terminals at a video 17
	5471	+	lottery facility in Allegany County: 18
	5472	+
	5473	+	(v) 1. except as provided in items 2 and 3 of this item, 0.75% to 19
	5474	+	the [Small, Minority, and Women–Owned Businesses] REINVEST FOR SUCCESS Account 20
	5475	+	established under § 5–1501 of the Economic Development Article; 21
	5476	+
	5477	+	[Subtitle 31. Commerce Subcabinet.] 22
	5478	+
	5479	+	[9–3101. 23
	5480	+
	5481	+	(a) In this subtitle the following words have the meanings indicated. 24
	5482	+
	5483	+	(b) “Secretary” means the Secretary of Commerce. 25
	5484	+
	5485	+	(c) “Subcabinet” means the Commerce Subcabinet.] 26
	5486	+
	5487	+	[9–3102. 27
	5488	+
	5489	+	(a) There is a Commerce Subcabinet. 28
	5490	+
	5491	+	(b) The Subcabinet is composed of the following members: 29
	5492	+
	5493	+	(1) the Secretary, or the Secretary’s designee; 30
	5494	+	SENATE BILL 427 115
	5495	+
	5496	+
	5497	+	(2) the Secretary of Transportation, or the Secretary’s designee; 1
	5498	+
	5499	+	(3) the Secretary of Labor, or the Secretary’s designee; 2
	5500	+
	5501	+	(4) the Secretary of the Environment, or the Secretary’s designee; 3
	5502	+
	5503	+	(5) the Secretary of Housing and Community Development, or the 4
	5504	+	Secretary’s designee; 5
	5505	+
	5506	+	(6) the Secretary of Planning, or the Secretary’s designee; and 6
	5507	+
	5508	+	(7) the Special Secretary of Minority Affairs, or the Special Secretary’s 7
	5509	+	designee.] 8
	5510	+
	5511	+	[9–3103. 9
	5512	+
	5513	+	The Subcabinet shall: 10
	5514	+
	5515	+	(1) advise the Governor on proposals to enhance the State’s business 11
	5516	+	climate; 12
	5517	+
	5518	+	(2) gather information the Subcabinet considers necessary to promote the 13
	5519	+	goals of the Subcabinet; 14
	5520	+
	5521	+	(3) collaborate to facilitate and expedite critical economic development 15
	5522	+	projects in the State; and 16
	5523	+
	5524	+	(4) provide other assistance that may be required to further the goals of 17
	5525	+	the Subcabinet and enhance the State’s business climate.] 18
	5526	+
	5527	+	[9–3104. 19
	5528	+
	5529	+	(a) The Secretary shall: 20
	5530	+
	5531	+	(1) chair the Subcabinet; 21
	5532	+
	5533	+	(2) convene the meetings of the Subcabinet; and 22
	5534	+
	5535	+	(3) be responsible for the oversight, direction, and accountability of the 23
	5536	+	work of the Subcabinet. 24
	5537	+
	5538	+	(b) The Office of the Secretary of Commerce shall provide the primary staff 25
	5539	+	support for the Subcabinet. 26
	5540	+
	5541	+	(c) The Subcabinet shall meet each month.] 27
	5542	+	116 SENATE BILL 427
	5543	+
	5544	+
	5545	+	Article – Tax – Property 1
	5546	+
	5547	+	9–103.1. 2
	5548	+
	5549	+	(a) (1) In this section the following words have the meanings indicated. 3
	5550	+
	5551	+	(7) “RISE zone” has the meaning stated in [§ 5–1401] § 10–137 of the 4
	5552	+	Economic Development Article. 5
	5553	+
	5554	+	(c) (6) (i) If a RISE zone is renewed as provided under [§ 5–1404] § 6
	5555	+	10–140 of the Economic Development Article, the governing body of a county or municipal 7
	5556	+	corporation shall calculate the amount of the tax credit under this section equal to at least 8
	5557	+	10% of the amount of property tax imposed on the eligible assessment of the qualified 9
	5558	+	property for the sixth through tenth taxable years. 10
	5559	+
	5560	+	(e) When a Regional Institution Strategic Enterprise zone is designated by the 11
	5561	+	[Secretary of Commerce] MARYLAND ECONOMIC DEVELOPMENT CORPORATION , the 12
	5562	+	[Secretary] CORPORATION shall certify to the State Department of Assessments and 13
	5563	+	Taxation: 14
	5564	+
	5565	+	(1) the real properties in the zone that are qualified properties for each 15
	5566	+	taxable year for which the property tax credit under this section is to be granted; and 16
	5567	+
	5568	+	(2) the date that the real properties became qualified properties. 17
	5569	+
	5570	+	(f) Before property tax bills are sent, the State Department of Assessments and 18
	5571	+	Taxation shall submit to the [Secretary of Commerce] MARYLAND ECONOMIC 19
	5572	+	DEVELOPMENT CORPORATION a list containing: 20
	5573	+
	5574	+	(1) the location of each qualified property; 21
	5575	+
	5576	+	(2) the amount of the base year value for each qualified property; and 22
	5577	+
	5578	+	(3) the amount of the eligible assessment for each qualified property. 23
	5579	+
	5580	+	9–229. 24
	5581	+
	5582	+	(c) For each of the 5 taxable years immediately following the first revaluation of 25
	5583	+	the property after completion of a voluntary cleanup or corrective action plan of a 26
	5584	+	brownfields site, each participating taxing jurisdiction where a qualified brownfields site is 27
	5585	+	located shall: 28
	5586	+
	5587	+	(2) contribute to the Maryland Economic [Development Assistance] 29
	5588	+	COMPETITIVENESS Fund under § 5–313(8) of the Economic Development Article, 30% of 30
	5589	+	the property tax attributable to the increase in the assessment of the brownfields site, 31
	5590	+	including improvements added to the site within the 5–year period as provided under this 32 SENATE BILL 427 117
	5591	+
	5592	+
	5593	+	subsection, over the assessment of the qualified brownfields site before the voluntary 1
	5594	+	cleanup. 2
	5595	+
	5596	+	(g) A taxing jurisdiction’s contribution for each qualified brownfields site to the 3
	5597	+	Maryland Economic [Development Assistance] COMPETITIVENESS Fund under 4
	5598	+	subsection (c)(2) of this section shall be used only for brownfields sites in the taxing 5
	5599	+	jurisdictions that have enacted a brownfields property tax credit ordinance. 6
	5600	+
	5601	+	Chapter 430 of the Acts of 2023 7
	5602	+
	5603	+	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
	5604	+	1, 2023. It shall remain effective for a period of [4] 7 years and, at the end of June 30, 9
	5605	+	[2027] 2030, this Act, with no further action required by the General Assembly, shall be 10
	5606	+	abrogated and of no further force and effect. 11
	5607	+
	5608	+	Chapter 431 of the Acts of 2023 12
	5609	+
	5610	+	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
	5611	+	1, 2023. It shall remain effective for a period of [4] 7 years and, at the end of June 30, 14
	5612	+	[2027] 2030, this Act, with no further action required by the General Assembly, shall be 15
	5613	+	abrogated and of no further force and effect. 16
	5614	+
	5615	+	SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 17
	5616	+	as follows: 18
	5617	+
	5618	+	Article – Economic Development 19
	5619	+
	5620	+	6–309. 20
	5621	+
	5622	+	(a) Subject to subsection (b) of this section, this subtitle and the tax credit 21
	5623	+	authorized under it shall terminate on January 1, [2027] 2026. 22
	5624	+
	5625	+	(b) After termination of this subtitle: 23
	5626	+
	5627	+	(1) a business entity may be considered for eligibility for the tax credit 24
	5628	+	authorized under this subtitle based on positions filled before termination of this subtitle, 25
	5629	+	provided that the other requirements of the subtitle are satisfied; and 26
	5630	+
	5631	+	(2) tax credits earned may be carried forward and are subject to recapture 27
	5632	+	in accordance with § 6–305 of this subtitle. 28
	5633	+
	5634	+	6–407. 29
	5635	+
	5636	+	(A) THIS SUBTITLE AND THE TAX CREDIT AUTHORIZE D UNDER IT SHALL 30
	5637	+	TERMINATE ON JANUARY 1, 2026. 31
	5638	+	118 SENATE BILL 427
	5639	+
	5640	+
	5641	+	(B) AFTER THE TERMINATION OF THIS SUBTITLE , TAX CREDITS EARNED 1
	5642	+	MAY BE CARRIED FORWA RD IN ACCORDANCE WIT H § 6–403 OF THIS SUBTITLE. 2
	5643	+
	5644	+	6–1007. 3
	5645	+
	5646	+	(a) In this section, “investment”, “qualified investor”, and “qualified Maryland 4
	5647	+	technology company” have the meanings stated in § 10–733 of the Tax – General Article. 5
	5648	+
	5649	+	(b) For a qualified opportunity fund that is a qualified investor in a qualified 6
	5650	+	Maryland technology company under § 10–733 of the Tax – General Article, if the qualified 7
	5651	+	Maryland technology company, on or after March 1, 2018, is newly established in or 8
	5652	+	expands into an opportunity zone [in a county other than Allegany County, Dorchester 9
	5653	+	County, Garrett County, or Somerset County]: 10
	5654	+
	5655	+	(1) the Level 1 opportunity zone enhancement is [33%] 65% of the 11
	5656	+	investment in a qualified Maryland technology company, not to exceed [$300,000] 12
	5657	+	$575,000; and 13
	5658	+
	5659	+	(2) the Level 2 opportunity zone enhancement is [50%] 75% of the 14
	5660	+	investment in the qualified Maryland technology company, not to exceed [$500,000] 15
	5661	+	$750,000. 16
	5662	+
	5663	+	(c) The enhanced tax credit percentages and maximums authorized under 17
	5664	+	subsection (b) of this section are in substitution for and not in addition to the percentages 18
	5665	+	and maximums under § 10–733(d) of the Tax – General Article. 19
	5666	+
	5667	+	Article – Housing and Community Development 20
	5668	+
	5669	+	6–404. 21
	5670	+
	5671	+	(a) (1) For a contribution worth $500 or more in goods, money, or real property 22
	5672	+	to an approved project, a business entity or an individual is entitled to a tax credit in the 23
	5673	+	amount determined under subsection (b) of this section. 24
	5674	+
	5675	+	(2) No part of a tax credit under this section may be taken more than once. 25
	5676	+
	5677	+	(b) (1) Except as provided in [paragraph (2)] PARAGRAPHS (2) AND (3) of 26
	5678	+	this subsection, the credit allowed to a business entity or an individual under this section 27
	5679	+	equals 50% of the amount of contributions: 28
	5680	+
	5681	+	(i) that the Department approves under subsection (c) of this 29
	5682	+	section; and 30
	5683	+
	5684	+	(ii) that were made during the taxable year for which the credit is 31
	5685	+	claimed. 32
	5686	+	SENATE BILL 427 119
	5687	+
	5688	+
	5689	+	(2) IF THE APPROVED PROJE CT OR BUSINESS ENTIT Y IS LOCATED 1
	5690	+	WITHIN A REGIONAL INSTITUTION STRATEGIC ENTERPRISE ZONE DESIG NATED 2
	5691	+	UNDER TITLE 10, SUBTITLE 1 OF THE ECONOMIC DEVELOPMENT ARTICLE OR A 3
	5692	+	RISE ZONE CATCHMENT AREA, AS DEFINED UNDER § 4–509 OF THIS ARTICLE, THE 4
	5693	+	TAX CREDIT ALLOWED TO A BUSINES S ENTITY OR AN INDIV IDUAL UNDER THIS 5
	5694	+	SECTION EQUALS 60% OF THE AMOUNT OF THE CONTRIBUTIONS DESCRIBED UNDER 6
	5695	+	PARAGRAPH (1) OF THIS SUBSECTION . 7
	5696	+
	5697	+	[(2)] (3) The credit allowed under this section for any taxable year may 8
	5698	+	not exceed the lesser of: 9
	5699	+
	5700	+	(i) $250,000; and 10
	5701	+
	5702	+	(ii) the total amount of tax otherwise payable by the business entity 11
	5703	+	or individual for the taxable year. 12
	5704	+
	5705	+	[(3)] (4) Any excess credit that would be allowed but for the limits of 13
	5706	+	paragraph [(2)] (3) of this subsection may be carried over and applied as a credit for up to 14
	5707	+	5 taxable years after the taxable year in which the contribution was made, until the full 15
	5708	+	amount of the excess is used. 16
	5709	+
	5710	+	(c) (1) To qualify for a credit for a contribution under this section, before 17
	5711	+	making a contribution, a business entity or an individual shall apply for and receive 18
	5712	+	approval of the contribution from the Department. 19
	5713	+
	5714	+	(2) Each application for approval of a contribution shall contain: 20
	5715	+
	5716	+	(i) the name of the approved project to which the contribution will 21
	5717	+	be made; 22
	5718	+
	5719	+	(ii) the amount of the contribution; and 23
	5720	+
	5721	+	(iii) a certification by an independent and unrelated third party as to 24
	5722	+	the value of any nonmonetary contribution included or, for new goods, an invoice or receipt 25
	5723	+	certifying the contribution’s net cost to the business entity or individual. 26
	5724	+
	5725	+	(3) The Department may not approve an application if it determines that: 27
	5726	+
	5727	+	(i) the maximum amount of contributions eligible for a tax credit for 28
	5728	+	the project for the fiscal year will be exceeded by the sum of: 29
	5729	+
	5730	+	1. the amount of the proposed contribution; and 30
	5731	+
	5732	+	2. the total amount of contributions previously approved for 31
	5733	+	that project for the fiscal year; or 32
	5734	+	120 SENATE BILL 427
	5735	+
	5736	+
	5737	+	(ii) the applicant has overstated the value of a nonmonetary 1
	5738	+	contribution. 2
	5739	+
	5740	+	(4) On or before January 31 of each year, the Department shall report to 3
	5741	+	the Department of Assessments and Taxation, the Comptroller, and the Maryland 4
	5742	+	Insurance Administration the contributions that the Department has approved under this 5
	5743	+	section in the preceding calendar year. 6
	5744	+
	5745	+	Article – Tax – General 7
	5746	+
	5747	+	10–702. 8
	5748	+
	5749	+	(a) (1) In this section the following words have the meanings indicated. 9
	5750	+
	5751	+	(4) (ii) “Enterprise zone” includes a Regional Institution Strategic 10
	5752	+	Enterprise zone established under [Title 5, Subtitle 14] TITLE 10, SUBTITLE 1 of the 11
	5753	+	Economic Development Article. 12
	5754	+
	5755	+	10–721. 13
	5756	+
	5757	+	(a) (1) In this section the following words have the meanings indicated. 14
	5758	+
	5759	+	(2) “Department” means the Department of Commerce. 15
	5760	+
	5761	+	(3) “Maryland base amount” means the base amount as defined in § 41(c) 16
	5762	+	of the Internal Revenue Code that is attributable to Maryland, determined by: 17
	5763	+
	5764	+	(i) substituting “Maryland qualified research and development 18
	5765	+	expense” for “qualified research expense”; 19
	5766	+
	5767	+	(ii) substituting “Maryland qualified research and development” for 20
	5768	+	“qualified research”; and 21
	5769	+
	5770	+	(iii) using, instead of the “fixed base percentage”: 22
	5771	+
	5772	+	1. the percentage that the Maryland qualified research and 23
	5773	+	development expense for the 4 taxable years immediately preceding the taxable year in 24
	5774	+	which the expense is incurred is of the gross receipts for those years; or 25
	5775	+
	5776	+	2. for a taxpayer who has fewer than 4 but at least 1 prior 26
	5777	+	taxable year, the percentage as determined under item 1 of this item, determined using the 27
	5778	+	number of immediately preceding taxable years that the taxpayer has. 28
	5779	+
	5780	+	(4) “Maryland gross receipts” means gross receipts that are reasonably 29
	5781	+	attributable to the conduct of a trade or business in this State, determined under methods 30
	5782	+	prescribed by the Comptroller based on standards similar to the standards under § 10–402 31
	5783	+	of this title. 32 SENATE BILL 427 121
	5784	+
	5785	+
	5786	+
	5787	+	(5) “Maryland qualified research and development” means qualified 1
	5788	+	research as defined in § 41(d) of the Internal Revenue Code that is conducted in this State 2
	5789	+	IN THE SECTORS INCLU DED ON THE LIST ESTA BLISHED BY THE DEPARTMENT IN 3
	5790	+	ACCORDANCE WITH § 2.5–106 OF THE ECONOMIC DEVELOPMENT ARTICLE. 4
	5791	+
	5792	+	(6) “Maryland qualified research and development expenses” means 5
	5793	+	qualified research expenses as defined in § 41(b) of the Internal Revenue Code incurred for 6
	5794	+	Maryland qualified research and development. 7
	5795	+
	5796	+	(7) “Net book value assets” means the total of a business’s net value of 8
	5797	+	assets, including intangibles but not including liabilities, minus depreciation and 9
	5798	+	amortization. 10
	5799	+
	5800	+	(8) “Small business” means a for–profit corporation, limited liability 11
	5801	+	company, partnership, or sole proprietorship with net book value assets totaling, at the 12
	5802	+	beginning or the end of the taxable year for which Maryland qualified research and 13
	5803	+	development expenses are incurred, as reported on the balance sheet, less than $5,000,000. 14
	5804	+
	5805	+	(b) (1) The purpose of the Research and Development Tax Credit Program is 15
	5806	+	to foster increased research activities and expenditures WITHIN TARGET INDUST RIES 16
	5807	+	AND SECTORS in Maryland. 17
	5808	+
	5809	+	(2) Subject to the limitations of this section, an individual or a corporation 18
	5810	+	may claim credits against the State income tax in an amount equal to 10% of the amount 19
	5811	+	by which the Maryland qualified research and development expenses paid or incurred by 20
	5812	+	the individual or corporation during the taxable year exceed the Maryland base amount for 21
	5813	+	the individual or corporation. 22
	5814	+
	5815	+	(c) (1) By November 15 of the calendar year following the end of the taxable 23
	5816	+	year in which the Maryland qualified research and development expenses were incurred, 24
	5817	+	an individual or corporation shall submit an application to the Department for the credits 25
	5818	+	allowed under subsection (b) of this section. 26
	5819	+
	5820	+	(2) For each calendar year, the total amount of credits approved by the 27
	5821	+	Department under subsection (b) of this section may not exceed $12,000,000. 28
	5822	+
	5823	+	(3) (i) Except as provided in paragraph (5) of this subsection, each 29
	5824	+	calendar year, the Department shall reserve $3,500,000 of the credits authorized under 30
	5825	+	subsection (b) of this section for applicants that are small businesses. 31
	5826	+
	5827	+	(ii) Subject to paragraph (5) of this subsection, if the total amount of 32
	5828	+	credits applied for by all small businesses under this section exceeds the amount specified 33
	5829	+	under subparagraph (i) of this paragraph, the Department shall approve a credit for each 34
	5830	+	applicant in an amount equal to the product of multiplying the credit applied for by the 35
	5831	+	applicant times a fraction: 36
	5832	+	122 SENATE BILL 427
	5833	+
	5834	+
	5835	+	1. the numerator of which is the amount specified under 1
	5836	+	subparagraph (i) of this paragraph; and 2
	5837	+
	5838	+	2. the denominator of which is the total of all credits applied 3
	5839	+	for by all small businesses under this section in the calendar year. 4
	5840	+
	5841	+	(4) (i) Except as provided in paragraph (5) of this subsection, for each 5
	5842	+	calendar year, the total amount of credits approved by the Department under this section 6
	5843	+	to applicants that are not small businesses may not exceed $8,500,000. 7
	5844	+
	5845	+	(ii) Subject to paragraph (5) of this subsection, if the total amount of 8
	5846	+	credits applied for by all applicants that are not small businesses exceeds the maximum 9
	5847	+	specified under subparagraph (i) of this paragraph, the Department shall approve a credit 10
	5848	+	under this section for each applicant in an amount equal to the product of multiplying the 11
	5849	+	credit applied for by the applicant times a fraction: 12
	5850	+
	5851	+	1. the numerator of which is the maximum specified under 13
	5852	+	subparagraph (i) of this paragraph; and 14
	5853	+
	5854	+	2. the denominator of which is the total of all credits applied 15
	5855	+	for by all applicants that are not small businesses in the calendar year. 16
	5856	+
	5857	+	(5) (i) For any calendar year, if the total amount of credits applied for 17
	5858	+	by all small businesses is less than $3,500,000, the amount specified under paragraph (4)(i) 18
	5859	+	of this subsection shall be increased for that calendar year by an amount equal to the 19
	5860	+	difference between $3,500,000 and the total amount of credits applied for by small 20
	5861	+	businesses. 21
	5862	+
	5863	+	(ii) For any calendar year, if the total amount of credits applied for 22
	5864	+	by all applicants that are not small businesses is less than $8,500,000, the amount specified 23
	5865	+	under paragraph (3)(i) of this subsection shall be increased for that calendar year by an 24
	5866	+	amount equal to the difference between $8,500,000 and the total amount of credits applied 25
	5867	+	for by applicants that are not small businesses. 26
	5868	+
	5869	+	(6) The Department may not approve a tax credit for any single applicant 27
	5870	+	in an amount exceeding $250,000. 28
	5871	+
	5872	+	(7) By February 15 of the calendar year following the end of the year in 29
	5873	+	which the individual or corporation submitted an application for the credit in accordance 30
	5874	+	with paragraph (1) of this subsection, the Department shall certify to the individual or 31
	5875	+	corporation the amount of the research and development tax credits approved by the 32
	5876	+	Department for the individual or corporation under this section. 33
	5877	+
	5878	+	(8) To claim the approved credits allowed under this section, an individual 34
	5879	+	or corporation shall: 35
	5880	+
	5881	+	(i) 1. file an amended income tax return for the taxable year in 36 SENATE BILL 427 123
	5882	+
	5883	+
	5884	+	which the Maryland qualified research and development expense was incurred; and 1
	5885	+
	5886	+	2. attach a copy of the Department’s certification of the 2
	5887	+	approved credit amount to the amended income tax return; or 3
	5888	+
	5889	+	(ii) subject to subsection (d) of this section, attach a copy of the 4
	5890	+	Department’s certification of the approved credit amount to an income tax return filed for 5
	5891	+	any of the 7 taxable years after the taxable year in which the Maryland qualified research 6
	5892	+	and development expenses were incurred. 7
	5893	+
	5894	+	(d) (1) Except as provided in paragraph (2) of this subsection, if the credit 8
	5895	+	allowed under this section in any taxable year exceeds the State income tax for that taxable 9
	5896	+	year, an individual or corporation may apply the excess as a credit against the State income 10
	5897	+	tax for succeeding taxable years until the earlier of: 11
	5898	+
	5899	+	(i) the full amount of the excess is used; or 12
	5900	+
	5901	+	(ii) the expiration of the 7th taxable year after the taxable year in 13
	5902	+	which the Maryland qualified research and development expense was incurred. 14
	5903	+
	5904	+	(2) If the credit allowed under this section in any taxable year exceeds the 15
	5905	+	State income tax for that taxable year, a small business may claim a refund in the amount 16
	5906	+	of the excess. 17
	5907	+
	5908	+	(e) (1) In determining the amount of the credit under this section: 18
	5909	+
	5910	+	(i) all members of the same controlled group of corporations, as 19
	5911	+	defined under § 41(f) of the Internal Revenue Code, shall be treated as a single taxpayer; 20
	5912	+	and 21
	5913	+
	5914	+	(ii) the credit allowable by this section to each member shall be its 22
	5915	+	proportionate shares of the qualified research expenses giving rise to the credit. 23
	5916	+
	5917	+	(2) The Comptroller shall adopt regulations providing for: 24
	5918	+
	5919	+	(i) determination of the amount of the credit under this section in 25
	5920	+	the case of trades or businesses, whether or not incorporated, that are under common 26
	5921	+	control; 27
	5922	+
	5923	+	(ii) pass–through and allocation of the credit in the case of estates 28
	5924	+	and trusts, partnerships, unincorporated trades or businesses, and S corporations; 29
	5925	+
	5926	+	(iii) adjustments in the case of acquisitions and dispositions 30
	5927	+	described in § 41(f)(3) of the Internal Revenue Code; and 31
	5928	+
	5929	+	(iv) determination of the credit in the case of short taxable years. 32
	5930	+	124 SENATE BILL 427
	5931	+
	5932	+
	5933	+	(3) The regulations adopted under paragraph (2) of this subsection shall be 1
	5934	+	based on principles similar to the principles applicable under § 41 of the Internal Revenue 2
	5935	+	Code and regulations adopted thereunder. 3
	5936	+
	5937	+	(f) (1) The Department of Commerce and the Comptroller jointly shall adopt 4
	5938	+	regulations to prescribe standards for determining when research or development is 5
	5939	+	considered conducted in the State for purposes of determining the credit under this section. 6
	5940	+
	5941	+	(2) In adopting regulations under this subsection, the Department and the 7
	5942	+	Comptroller may consider: 8
	5943	+
	5944	+	(i) the location where services are performed; 9
	5945	+
	5946	+	(ii) the residence or business location of the person or persons 10
	5947	+	performing services; 11
	5948	+
	5949	+	(iii) the location where supplies used in research and development 12
	5950	+	are consumed; and 13
	5951	+
	5952	+	(iv) any other factors that the Department determines are relevant 14
	5953	+	for the determination. 15
	5954	+
	5955	+	(g) In accordance with § 2.5–109 of the Economic Development Article, the 16
	5956	+	Department shall report on the credits approved under this section. 17
	5957	+
	5958	+	(h) If the provisions of § 41 of the Internal Revenue Code governing the federal 18
	5959	+	research and development tax credit are repealed or terminate, the provisions of this 19
	5960	+	section continue to operate as if the provisions of § 41 of the Internal Revenue Code remain 20
	5961	+	in effect, and the Maryland research and development tax credit under this section shall 21
	5962	+	continue to be available. 22
	5963	+
	5964	+	(I) (1) THE DEPARTMENT MAY NOT AP PROVE A CREDIT UNDER THIS 23
	5965	+	SECTION FOR A TAXABL E YEAR BEGINNING AFT ER DECEMBER 31, 2030. 24
	5966	+
	5967	+	(2) IF A TAXPAYER’S TAXABLE YEAR FOR I NCOME TAX PURPOSES I S 25
	5968	+	NOT THE CALENDAR YEA R, FOR THE TAXABLE YEAR THAT BEGINS IN CALEN DAR 26
	5969	+	YEAR 2030, THE TAXPAYER MAY APP LY FOR ONLY A PRORAT ED CREDIT FOR 27
	5970	+	RESEARCH AND DEVELOP MENT EXPENSES PAID O R INCURRED IN THE TA XABLE 28
	5971	+	YEAR FOR THAT PART OF THE TAXABLE YEAR THAT FA LLS IN CALENDAR YEAR 2030. 29
	5972	+
	5973	+	10–725. 30
4906	5974
4907	5975		(a) (1) In this section the following words have the meanings indicated. 31
4908		-	SENATE BILL 427 103
4909		-
4910		-
4911		-	(2) “CHILD CARE SLOT ” MEANS SPACE AVAILABL E FOR A CHILD TO 1
4912		-	ENROLL FOR A FULL 8–HOUR DAY OF CHILD CA RE. 2
4913		-
4914		-	(3) “ENOUGH ELIGIBLE NEIGHB ORHOOD” MEANS AN AREA THAT 3
4915		-	HAS BEEN DESIGNATED IN ACCORDANCE WITH § 9–2803 OF THE STATE 4
4916		-	GOVERNMENT ARTICLE. 5
4917		-
4918		-	[(2)] (4) “Fund” means the Child Care Capital Support Revolving Loan 6
4919		-	Fund. 7
4920		-
4921		-	[(3)] (5) “Rural community” has the meaning stated in § 2–207 of the 8
4922		-	State Finance and Procurement Article. 9
4923		-
4924		-	(6) “SECRETARY” MEANS THE SECRETARY OF COMMERCE. 10
4925		-
4926		-	(b) There is a Child Care Capital Support Revolving Loan Fund. 11
4927		-
4928		-	(c) The purpose of the Fund is to provide no–interest loans for capital expenses 12
4929		-	to child care providers who participate in the Child Care Scholarship Program under § 13
4930		-	9.5–113 of this subtitle. 14
4931		-
4932		-	(d) The Department of Commerce shall administer the Fund with support from 15
4933		-	the Department. 16
4934		-
4935		-	(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 17
4936		-	the State Finance and Procurement Article that shall be available in perpetuity for the 18
4937		-	purpose of providing loans in accordance with the provisions of this section. 19
4938		-
4939		-	(2) The State Treasurer shall hold the Fund separately, and the 20
4940		-	Comptroller shall account for the Fund. 21
4941		-
4942		-	(f) The Fund consists of: 22
4943		-
4944		-	(1) Money appropriated in the State budget to the Fund; 23
4945		-
4946		-	(2) Any interest earnings of the Fund; 24
4947		-
4948		-	(3) Repayments of principal and interest from loans made from the Fund; 25
4949		-	and 26
4950		-
4951		-	(4) Any other money from any other source accepted for the benefit of the 27
4952		-	Fund. 28
4953		-
4954		-	(g) (1) The Fund may be used only to provide no–interest loans to child care 29
4955		-	providers for capital expenses related to a child care facility, including: 30
4956		-	104 SENATE BILL 427
4957		-
4958		-
4959		-	(i) Acquisition; 1
4960		-
4961		-	(ii) Expansion; 2
4962		-
4963		-	(iii) [Renovations; and 3
4964		-
4965		-	(iv)] New construction; AND 4
4966		-
4967		-	(IV) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 5
4968		-	RENOVATIONS . 6
4969		-
4970		-	[(2) (i) Except as provided in subparagraph (ii) of this paragraph, child 7
4971		-	care providers shall repay loans from the Fund not later than 5 years after receiving a loan 8
4972		-	from the Fund. 9
4973		-
4974		-	(ii) The Department of Commerce may establish a financial 10
4975		-	hardship exemption to allow a child care provider additional time to repay a loan from the 11
4976		-	Fund. 12
4977		-
4978		-	(iii) If a hardship exemption is not granted, the Department of 13
4979		-	Commerce shall apply its normal policy regarding assisting child care providers with past 14
4980		-	due loan payments.] 15
4981		-
4982		-	(2) LOANS PROVIDED FOR RENOVAT IONS UNDER PARAGRAPH (1)(IV) 16
4983		-	OF THIS SUBSECTION M AY: 17
4984		-
4985		-	(I) BE PROVIDED ONLY TO A FAMILY CHILD CARE HO ME OR 18
4986		-	LARGE FAMILY CHILD C ARE HOME; AND 19
4987		-
4988		-	(II) BE PROVIDED ONLY FOR RENOVATIONS NECESSAR Y TO 20
4989		-	MAINTAIN LICENSURE B Y THE DEPARTMENT AS DEMONSTRATED THRO UGH 21
4990		-	DOCUMENTS REQUIRED B Y THE DEPARTMENT OF COMMERCE AND VERIFIED BY 22
4991		-	THE DEPARTMENT . 23
4992		-
4993		-	(3) (I) THE TERM OF A LOAN FR OM THE FUND SHALL BE 24
4994		-	DETERMINED BY THE DEPARTMENT OF COMMERCE. 25
4995		-
4996		-	(II) THE TERM SET BY THE DEPARTMENT OF COMMERCE SHALL 26
4997		-	BE FOR NOT LESS THAN 5 YEARS. 27
4998		-
4999		-	(4) UP TO $50,000 OF A LOAN PROVIDED T O A FAMILY CHILD CAR E 28
5000		-	HOME OR LARGE FAMILY CHILD CARE HOME MAY BE CONVERTED TO A GR ANT ON 29
5001		-	APPROVAL BY THE DEPARTMENT OF COMMERCE IN ACCORDANC E WITH 30
5002		-	SUBSECTION (I)(2) OF THIS SECTION. 31
5003		-	SENATE BILL 427 105
5004		-
5005		-
5006		-	(h) (1) The State Treasurer shall invest the money of the Fund in the same 1
5007		-	manner as other State money may be invested. 2
5008		-
5009		-	(2) Any interest earnings of the Fund shall be credited to the Fund. 3
5010		-
5011		-	(i) (1) The Department of Commerce, in consultation with the Department, 4
5012		-	shall establish application procedures and eligibility criteria for loans from the Fund, in 5
5013		-	addition to the requirement that a child care provider be a participant in the Child Care 6
5014		-	Scholarship Program under § 9.5–113 of this subtitle. 7
5015		-
5016		-	(2) [The] IN ORDER TO HAVE A LO AN OR PART OF A LOAN CONVERTED 8
5017		-	TO A GRANT UNDER SUB SECTION (G)(4) OF THIS SECTION , A FAMILY CHILD CARE 9
5018		-	HOME OR LARGE FAMILY CHILD CARE HOME SHAL L DEMONSTRATE ATTAIN MENT OF 10
5019		-	AT LEAST A QUALITY R ATING 3 ON THE MARYLAND EXCELS PROGRAM. 11
5020		-
5021		-	(3) EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION , 12
5022		-	THE Department OF COMMERCE shall prioritize applicant criteria in the following order 13
5023		-	when providing funding from the Fund: 14
5024		-
5025		-	[(i) Child care providers that are located in: 15
5026		-
5027		-	1. Underserved communities; or 16
5028		-
5029		-	2. Areas designated by the Department as areas lacking 17
5030		-	child care slots; 18
5031		-
5032		-	(ii) Child care providers that are located in rural communities; 19
5033		-
5034		-	(iii) Child care providers that serve primarily low –income 20
5035		-	populations in areas of high poverty;] 21
5036		-
5037		-	(I) CHILD CARE PROVIDERS THAT WILL INCREASE T HE 22
5038		-	NUMBER OF AVAILABLE CHILD CARE SLOTS THE CHILD CARE PROVIDER MAY OFFER; 23
5039		-
5040		-	(II) CHILD CARE PROVIDERS THAT ARE LOCATED IN AREAS 24
5041		-	IDENTIFIED BY THE DEPARTMENT AS LACKING CHILD CARE SLOTS ; 25
5042		-
5043		-	(III) CHILD CARE PROVIDERS THAT SERVE PRIMARILY IN AN 26
5044		-	ENOUGH ELIGIBLE NEIGHBORHOO D; 27
5045		-
5046		-	(iv) Child care providers that serve children with special needs; and 28
5047		-
5048		-	(v) Child care providers that serve children ages 2 and younger. 29
5049		-	106 SENATE BILL 427
5050		-
5051		-
5052		-	(4) (I) THE STATE SUPERINTENDENT AND TH E SECRETARY MAY 1
5053		-	TEMPORARILY ALTER TH E PRIORITIZATION ORD ER OF APPLICATIONS T O BEST 2
5054		-	MEET THE NEEDS OF TH E CHILD CARE INDUSTR Y AT A GIVEN TIME. 3
5055		-
5056		-	(II) SHOULD THE STATE SUPERINTENDENT AND TH E 4
5057		-	SECRETARY CHOOSE TO A LTER THE PRIORITIZAT ION ORDER OF APPLICATION S, THE 5
5058		-	NEW TEMPORARY PRIORI TIZATION ORDER SHALL BE COMMUNICATED ON T HE 6
5059		-	DEPARTMENT OF COMMERCE WEBSITE PRIO R TO ACCEPTING APPLI CATIONS. 7
5060		-
5061		-	(j) The Department of Commerce shall work with the Department to publicize 8
5062		-	the availability of loans from the Fund and provide support to child care providers in 9
5063		-	applying for loans from the Fund. 10
5064		-
5065		-	(k) (1) For fiscal year 2023, the Governor shall include in the annual budget 11
5066		-	bill an appropriation to the Fund of $15,000,000. 12
5067		-
5068		-	(2) For fiscal year 2024, the Governor shall include in the annual budget 13
5069		-	bill an appropriation to the Fund of $10,000,000. 14
5070		-
5071		-	Article – Housing and Community Development 15
5072		-
5073		-	4–509. 16
5074		-
5075		-	(a) (1) In this section the following words have the meanings indicated. 17
5076		-
5077		-	(2) “Anchor institution” means: 18
5078		-
5079		-	(i) an institution of higher education in the State, including 19
5080		-	departments, foundations, and other entities of the institution; or 20
5081		-
5082		-	(ii) a hospital institution in the State, including departments, 21
5083		-	foundations, and other entities of the institution, that: 22
5084		-
5085		-	1. has a group of at least five physicians who are organized 23
5086		-	as a medical staff for the institution; 24
5087		-
5088		-	2. maintains facilities to provide, under the supervision of 25
5089		-	the medical staff, diagnostic and treatment services for two or more unrelated individuals; 26
5090		-	and 27
5091		-
5092		-	3. admits or retains the individuals for overnight care. 28
5093		-
5094		-	(3) “Blighted area” means an area in which a majority of buildings have 29
5095		-	declined in productivity by reason of obsolescence, depreciation, or other causes to an extent 30
5096		-	that they no longer justify fundamental repairs and adequate maintenance. 31
5097		-	SENATE BILL 427 107
5098		-
5099		-
5100		-	(4) “Fund” means the Seed Community Development Anchor Institution 1
5101		-	Fund. 2
5102		-
5103		-	(5) “RISE ZONE CATCHMENT AREA ” MEANS A GEOGRAPHIC A REA 3
5104		-	LOCATED WITHIN A 5–MILE RADIUS OF THE C ENTER POINT OF A QUALIFIED 4
5105		-	INSTITUTION THAT IS LOCATED IN AN ACTIVE REGIONAL INSTITUTION STRATEGIC 5
5106		-	ENTERPRISE ZONE DESIGNATED UNDER TITLE 10, SUBTITLE 1 OF THE ECONOMIC 6
5107		-	DEVELOPMENT ARTICLE. 7
5108		-
5109		-	(6) “Sustainable community” means an area designated as a sustainable 8
5110		-	community under § 6–205 of this article. 9
5111		-
5112		-	(b) There is a Seed Community Development Anchor Institution Fund. 10
5113		-
5114		-	(c) The purpose of the Fund is to provide grants and loans to anchor institutions 11
5115		-	for community development projects in RISE ZONE CATCHMENT ARE AS, sustainable 12
5116		-	communities, and blighted areas of the State. 13
5117		-
5118		-	(d) The Department shall administer the Fund. 14
5119		-
5120		-	(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 15
5121		-	the State Finance and Procurement Article. 16
5122		-
5123		-	(2) The State Treasurer shall hold the Fund separately, and the 17
5124		-	Comptroller shall account for the Fund. 18
5125		-
5126		-	(f) The Fund consists of: 19
5127		-
5128		-	(1) money appropriated in the State budget to the Fund; 20
5129		-
5130		-	(2) interest earnings of the Fund; and 21
5131		-
5132		-	(3) any other money from any other source accepted for the benefit of the 22
5133		-	Fund. 23
5134		-
5135		-	(g) (1) The Fund may be used only to provide grants and loans to anchor 24
5136		-	institutions for community development projects in RISE ZONE CATCHMENT AREAS , 25
5137		-	sustainable communities, and blighted areas of the State. 26
5138		-
5139		-	(2) To be eligible for a grant or loan, an anchor institution shall provide 27
5140		-	evidence of matching funds. 28
5141		-
5142		-	(3) The Department shall award grants and loans from the Fund on a 29
5143		-	competitive basis. 30
5144		-	108 SENATE BILL 427
5145		-
5146		-
5147		-	(4) WHEN PROVIDING GRANTS AND LOANS FROM THE FUND, THE 1
5148		-	DEPARTMENT SHALL PRIORI TIZE APPLICANTS LOCA TED IN AN ACTIVE REGIONAL 2
5149		-	INSTITUTION STRATEGIC ENTERPRISE ZONE DESIGNATED UNDER TITLE 10, 3
5150		-	SUBTITLE 1 OF THE ECONOMIC DEVELOPMENT ARTICLE. 4
5151		-
5152		-	(h) (1) The State Treasurer shall invest the money of the Fund in the same 5
5153		-	manner as other State money may be invested. 6
5154		-
5155		-	(2) Any interest earnings of the Fund shall be credited to the Fund. 7
5156		-
5157		-	(i) Expenditures from the Fund may be made only in accordance with the State 8
5158		-	budget. 9
5159		-
5160		-	(j) (1) For fiscal year 2019, the Governor shall include in the annual budget 10
5161		-	bill or the capital budget bill an appropriation of $4,000,000 to the Fund. 11
5162		-
5163		-	(2) For fiscal year 2020, the Governor shall include in the annual budget 12
5164		-	bill or the capital budget bill an appropriation of $5,000,000 for the Fund. 13
5165		-
5166		-	(3) (i) For fiscal year 2021, the Governor shall include in the annual 14
5167		-	budget bill or the capital budget bill an appropriation of $5,000,000 for the Fund. 15
5168		-
5169		-	(ii) For fiscal year 2022 and each fiscal year thereafter, the Governor 16
5170		-	shall include in the annual budget bill or the capital budget bill an appropriation of 17
5171		-	$10,000,000 for the Fund. 18
5172		-
5173		-	6.5–107. 19
5174		-
5175		-	(e) The Fund consists of: 20
5176		-
5177		-	(2) money appropriated in the State budget to the Maryland Economic 21
5178		-	[Development Assistance] COMPETITIVENESS Fund under Title 5, Subtitle 3 of the 22
5179		-	Economic Development Article for the purpose of assisting in the establishment of 23
5180		-	broadband communication services in rural and underserved areas of the State; 24
5181		-
5182		-	Article – State Finance and Procurement 25
5183		-
5184		-	7–314. 26
5185		-
5186		-	(a) (1) In this section the following words have the meanings indicated. 27
5187		-
5188		-	(2) [“Account” means the Economic Development Opportunities Program 28
5189		-	Account.] “DEPARTMENT ” MEANS THE DEPARTMENT OF COMMERCE. 29
5190		-	SENATE BILL 427 109
5191		-
5192		-
5193		-	(3) [“Executive agency” means an executive department or agency in the 1
5194		-	Executive Branch of State government, including all offices of the Executive Department 2
5195		-	or agency directly responsible to the Governor. 3
5196		-
5197		-	(4)] “Extraordinary economic development opportunity” means the: 4
5198		-
5199		-	(i) attraction of a new private sector enterprise to the State or 5
5200		-	retention or expansion of an existing private sector enterprise in the State that: 6
5201		-
5202		-	1. maintains a strong financial condition and minimal credit 7
5203		-	risk profile; 8
5204		-
5205		-	2. is capable of accessing alternative sources of financing 9
5206		-	through financial institutions or capital markets; 10
5207		-
5208		-	3. is consistent with the strategic plan of the State for 11
5209		-	economic development; AND 12
5210		-
5211		-	4. creates or retains substantial employment, particularly in 13
5212		-	areas of high unemployment; [and 14
5213		-
5214		-	5. invests in capital at a level equal to five times the value of 15
5215		-	the incentive offered;] 16
5216		-
5217		-	(ii) retention or expansion of an existing public institution, private 17
5218		-	institution, or federal research and development institute that: 18
5219		-
5220		-	1. is consistent with the strategic plan of the State for 19
5221		-	economic development; and 20
5222		-
5223		-	2. creates or retains substantial employment, particularly in 21
5224		-	areas of high unemployment; or 22
5225		-
5226		-	(iii) establishment or attraction of a public institution, a private 23
5227		-	institution, or a federal research and development institute new to the State that: 24
5228		-
5229		-	1. is consistent with the strategic plan of the State for 25
5230		-	economic development; and 26
5231		-
5232		-	2. creates or retains substantial employment, particularly in 27
5233		-	areas of high unemployment. 28
5234		-
5235		-	(4) “FUND” MEANS THE STRATEGIC CLOSING FUND. 29
5236		-
5237		-	(5) (i) “Performance requirement” means a contractual agreement 30
5238		-	between an executive agency and [an Account] A FUND recipient that requires the 31 110 SENATE BILL 427
5239		-
5240		-
5241		-	[Account] FUND recipient to meet minimum economic development outcomes in exchange 1
5242		-	for a grant or a loan under this section. 2
5243		-
5244		-	(ii) “Performance requirement” includes claw –back, penalty, 3
5245		-	rescission, and recalibration clauses that utilize job creation, capital investment, and other 4
5246		-	measures of economic development. 5
5247		-
5248		-	(6) “Private sector enterprise” means any commercial, industrial, 6
5249		-	educational, or research organization which is not a part of or controlled by a federal, State, 7
5250		-	or local government agency. 8
5251		-
5252		-	(b) Subject to the provisions of this section, the [Economic Development 9
5253		-	Opportunities Program Account] STRATEGIC CLOSING FUND is established WITHIN THE 10
5254		-	DEPARTMENT to maximize extraordinary economic development opportunities. 11
5255		-
5256		-	(c) [Subject to subsection (r) of this section, the] THE Governor may provide an 12
5257		-	appropriation in the budget bill to the [Account] FUND for a specific or general purpose or 13
5258		-	purposes. 14
5259		-
5260		-	(d) After notice to and approval by the Legislative Policy Committee, the 15
5261		-	Governor may transfer funds by budget amendment [from the Economic Development 16
5262		-	Opportunities Program Account to the expenditure account of the appropriate executive 17
5263		-	agency] TO THE FUND. 18
5264		-
5265		-	(e) (1) The [Account] FUND is a continuing, nonlapsing fund which is not 19
5266		-	subject to § 7–302 of this subtitle. 20
5267		-
5268		-	(2) The Treasurer shall separately hold, and the Comptroller shall account 21
5269		-	for, the [Account] FUND. 22
5270		-
5271		-	(3) The [Account] FUND shall be invested and reinvested in the same 23
5272		-	manner as other State funds. 24
5273		-
5274		-	(4) [Except as provided in paragraph (5) of this subsection, any] ANY 25
5275		-	investment earnings shall be subject to § 7–311(d) of this subtitle. 26
5276		-
5277		-	[(5) Any investment earnings on money transferred from the Account to a 27
5278		-	second continuing, nonlapsing fund may be retained to the credit of the second fund.] 28
5279		-
5280		-	(f) (1) Money appropriated or credited to the [Account] FUND does not revert 29
5281		-	to the Revenue Stabilization Account. 30
5282		-
5283		-	(2) [Except as provided in paragraph (3) of this subsection, repayments] 31
5284		-	REPAYMENTS of principal or interest on any loan from the [Account] FUND shall be 32
5285		-	retained to the credit of the [Account] FUND. 33 SENATE BILL 427 111
5286		-
5287		-
5288		-
5289		-	[(3) Repayments of principal or interest on any loan made from money 1
5290		-	transferred from the Account to a second continuing, nonlapsing fund may be retained to 2
5291		-	the credit of the second fund.] 3
5292		-
5293		-	(g) (1) The Department [of Commerce] shall include the following information 4
5294		-	in the report that is required under § 2.5–109 of the Economic Development Article: 5
5295		-
5296		-	(i) the financial status of the program and a summary of its 6
5297		-	operations for the preceding fiscal year; 7
5298		-
5299		-	(ii) for the previous 3 fiscal years, the status of [Account] FUND 8
5300		-	disbursements for economic development projects reviewed by the Legislative Policy 9
5301		-	Committee under this section; 10
5302		-
5303		-	(iii) for the previous 3 fiscal years, the status of job creation, capital 11
5304		-	investment, and other measures of economic development for each economic development 12
5305		-	project reviewed by the Legislative Policy Committee under this section; 13
5306		-
5307		-	(iv) a list of guidelines for the kinds of performance requirements 14
5308		-	that may be negotiated with the loan or grant applicant; and 15
5309		-
5310		-	(v) an explanation of the job creation, capital investment, and other 16
5311		-	measures of economic development described in items (i) through (iii) of this paragraph are 17
5312		-	lower than negotiated according to subsection (h)(1) of this section. 18
5313		-
5314		-	(2) Upon receipt of the information that is required to be reported under 19
5315		-	this subsection, the Legislative Policy Committee shall have 60 days to review and 20
5316		-	comment on the information provided by the Department [of Commerce] under paragraph 21
5317		-	(1) of this subsection, during which time the Department [of Commerce] shall provide any 22
5318		-	additional information regarding the [Account] FUND as requested by the Legislative 23
5319		-	Policy Committee. 24
5320		-
5321		-	(h) (1) Except as provided in paragraph (2) of this subsection and in subsection 25
5322		-	(i) of this section, any funds transferred from the [Economic Development Opportunities 26
5323		-	Program Account] FUND shall be used only for extraordinary economic development 27
5324		-	opportunities that: 28
5325		-
5326		-	(i) meet the criteria provided in this section; 29
5327		-
5328		-	(ii) include performance requirements; and 30
5329		-
5330		-	(iii) in addition to the performance requirements under item (ii) of 31
5331		-	this paragraph, include a performance requirement that utilizes a claw–back provision. 32
5332		-	112 SENATE BILL 427
5333		-
5334		-
5335		-	(2) The [Account] DEPARTMENT may UTILIZE THE FUND TO pay an 1
5336		-	executive agency for administrative, legal, or actuarial expenses incurred by the [agency in 2
5337		-	connection with transactions funded by transfers of money to the agency from the Account] 3
5338		-	DEPARTMENT . 4
5339		-
5340		-	(i) (1) The Legislative Policy Committee may approve a n economic 5
5341		-	development opportunity that is not an extraordinary economic development opportunity 6
5342		-	if the executive agency requesting the transfer of funds offers a detailed justification for the 7
5343		-	exception. 8
5344		-
5345		-	(2) The Legislative Policy Committee shall give particular consideration to 9
5346		-	an exception that would provide a significant economic development opportunity for an area 10
5347		-	of the State that has a relatively high unemployment rate or relatively low per capita 11
5348		-	income. 12
5349		-
5350		-	(j) [(1)] The Department of Commerce may modify the guidelines for the kinds 13
5351		-	of performance requirements that may be negotiated with the loan or grant as needed, upon 14
5352		-	approval of the Legislative Policy Committee. 15
5353		-
5354		-	[(2) An executive agency may depart from these guidelines as needed, upon 16
5355		-	approval of the Legislative Policy Committee.] 17
5356		-
5357		-	(k) Subject to the provisions of this subtitle, funds [transferred] from the 18
5358		-	[Economic Development Opportunities Program Account, to an executive agency,] FUND 19
5359		-	may be loaned, granted, or invested for: 20
5360		-
5361		-	(1) assisting in the retention or expansion of existing private sector 21
5362		-	enterprises, public or private institutions, or federal research and development institutes; 22
5363		-
5364		-	(2) assisting in the establishment or attraction of private sector 23
5365		-	enterprises, public or private institutions, or federal research and development institutes 24
5366		-	new to this State; or 25
5367		-
5368		-	(3) providing assistance where existing State or local programs lack 26
5369		-	sufficient resources or are constrained by timing or program design from being utilized. 27
5370		-
5371		-	(l) [Upon submission to the Legislative Policy Committee of a proposed budget 28
5372		-	amendment to transfer money from the Account, the Governor] BEFORE FUNDS FROM 29
5373		-	THE FUND MAY BE LOANED , GRANTED, OR INVESTED IN ACCOR DANCE WITH 30
5374		-	SUBSECTION (K) OF THIS SECTION , THE DEPARTMEN T shall provide, subject to § 31
5375		-	2–1257 of the State Government Article, to the Legislative Policy Committee: 32
5376		-
5377		-	(1) a detailed description of: 33
5378		-
5379		-	(i) the proposed use of the funds; 34
5380		-	SENATE BILL 427 113
5381		-
5382		-
5383		-	(ii) the manner in which the proposed use meets the criteria as set 1
5384		-	forth in this section; 2
5385		-
5386		-	(iii) the degree to which the proposed use of funds will advance 3
5387		-	statewide or local economic development strategies and objectives; and 4
5388		-
5389		-	(iv) the degree to which available sources of federal, State, local, and 5
5390		-	private financial support have been sought and will be utilized; 6
5391		-
5392		-	(2) the terms, conditions, and performance requirements of any grant or 7
5393		-	loan for which the funds are to be used; 8
5394		-
5395		-	(3) a comprehensive economic analysis of the proposed use of the funds 9
5396		-	which estimates: 10
5397		-
5398		-	(i) the economic impact to the State and the local jurisdictions 11
5399		-	affected; 12
5400		-
5401		-	(ii) a minimum level of net economic benefits to the public sector; 13
5402		-
5403		-	(iii) the number of jobs expected to be created as a result of the 14
5404		-	proposed economic development project and the percentage of those jobs that are expected 15
5405		-	to be held by Maryland residents; 16
5406		-
5407		-	(iv) the wage rates and benefit packages for the jobs expected to be 17
5408		-	created as a result of the proposed economic development project; and 18
5409		-
5410		-	(v) any other appropriate financial or economic benefits; 19
5411		-
5412		-	(4) any other analysis or information that is requested by the Legislative 20
5413		-	Policy Committee; and 21
5414		-
5415		-	(5) the date on which the executive agency expects to disburse the funds to 22
5416		-	the proposed recipient. 23
5417		-
5418		-	(m) [If an executive agency fails to disburse transferred funds to a recipient within 24
5419		-	1 year after the expected disbursement date presented to the Legislative Policy Committee 25
5420		-	under subsection (l) of this section, the funds will revert back to the Account and the 26
5421		-	Governor shall: 27
5422		-
5423		-	(1) resubmit the proposed budget amendment to transfer money from the 28
5424		-	Account to the Legislative Policy Committee; and 29
5425		-
5426		-	(2) provide the Legislative Policy Committee with the information required 30
5427		-	under subsection (l) of this section. 31
5428		-	114 SENATE BILL 427
5429		-
5430		-
5431		-	(n)] Funds appropriated to the [Economic Development Opportunities Program 1
5432		-	Account] FUND may not be loaned, granted, or invested for: 2
5433		-
5434		-	(1) substituting for funds from other State or local programs for which a 3
5435		-	project may be eligible and sufficient resources exist; 4
5436		-
5437		-	(2) projects which are not likely to attract or retain employment 5
5438		-	opportunities; 6
5439		-
5440		-	(3) funding projects located outside the State; 7
5441		-
5442		-	(4) construction or land acquisition by the Maryland Stadium Authority; or 8
5443		-
5444		-	(5) funding for any sports activity or facility. 9
5445		-
5446		-	[(o) (1) This subsection does not apply to an economic development opportunity 10
5447		-	located in an area designated as a qualified opportunity zone under § 1400Z–1 of the 11
5448		-	Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico 12
5449		-	County. 13
5450		-
5451		-	(2) In the case of an economic development opportunity located outside a 14
5452		-	priority funding area as established under Title 5, Subtitle 7B of this article, the 15
5453		-	Department shall first comply with the provisions of that subtitle before making a request 16
5454		-	for approval by the Legislative Policy Committee under this section.] 17
5455		-
5456		-	[(p)] (N) [An executive agency] THE DEPARTMENT may approve changes to a 18
5457		-	transaction approved by the Legislative Policy Committee as long as the changes do not 19
5458		-	materially and adversely affect the overall position of the [executive agency] 20
5459		-	DEPARTMENT in the transaction or the economic development benefits to be derived by 21
5460		-	the State in the transaction. 22
5461		-
5462		-	[(q)] (O) (1) (i) In this subsection the following words have the meanings 23
5463		-	indicated. 24
5464		-
5465		-	(ii) “Financial assistance” means a grant, loan, or investment 25
5466		-	provided under this subsection that exceeds $100,000. 26
5467		-
5468		-	(iii) “Political subdivision” includes an agency or other 27
5469		-	instrumentality of the political subdivision. 28
5470		-
5471		-	(2) This subsection does not apply to financial assistance used solely for the 29
5472		-	purpose of acquiring real property or structures on real property. 30
5473		-
5474		-	(3) With respect to financial assistance under this section to a political 31
5475		-	subdivision: 32
5476		-	SENATE BILL 427 115
5477		-
5478		-
5479		-	(i) if the political subdivision has a program for promoting 1
5480		-	procurement opportunities among minority businesses that is acceptable to the 2
5481		-	Department [of Commerce], the political subdivision shall apply the requirements of that 3
5482		-	program to the procurement of goods or services made with the proceeds from the financial 4
5483		-	assistance; but 5
5484		-
5485		-	(ii) if the political subdivision does not have a program that is 6
5486		-	acceptable to the Department [of Commerce] under item (i) of this paragraph, the political 7
5487		-	subdivision is subject to paragraph (4) of this subsection. 8
5488		-
5489		-	(4) (i) In this paragraph, “minority business enterprise” has the 9
5490		-	meaning stated in § 14–301 of this article. 10
5491		-
5492		-	(ii) With respect to financial assistance under this section to an 11
5493		-	entity other than a political subdivision, the entity shall agree to include in the agreement 12
5494		-	providing the financial assistance a provision acceptable to the Department of Commerce 13
5495		-	that would encourage the procurement from minority business enterprises of goods or 14
5496		-	services purchased with the proceeds from the financial assistance. 15
5497		-
5498		-	(iii) In negotiating the provision required under subparagraph (ii) of 16
5499		-	this paragraph, the Department of Commerce shall take into account relevant factors, 17
5500		-	including: 18
5501		-
5502		-	1. the intended use of the proceeds from the financial 19
5503		-	assistance; and 20
5504		-
5505		-	2. the feasibility of obtaining the required goods or services 21
5506		-	from minority business enterprises. 22
5507		-
5508		-	(5) The Department of Commerce may require that a recipient of financial 23
5509		-	assistance under this section submit to the Department of Commerce a list, or an updated 24
5510		-	list, of the minority business enterprises from which goods or services were procured and 25
5511		-	the nature and dollar amount of the goods or services. 26
5512		-
5513		-	[(r) For fiscal years 2019 through 2021, the Governor shall include in the annual 27
5514		-	budget bill an appropriation of $5,000,000 to the Account to be used by the Department of 28
5515		-	Commerce to provide conditional loans or grants to companies that meet the following 29
5516		-	criteria: 30
5517		-
5518		-	(1) construction of company headquarters in the State with capital 31
5519		-	expenditures of at least $500,000,000; and 32
5520		-
5521		-	(2) retention of company headquarters in the State with at least 3,250 33
5522		-	eligible employees, consistent with a letter of intent entered into with the Department of 34
5523		-	Commerce in October 2016.] 35
5524		-
5525		-	Article – State Government 36 116 SENATE BILL 427
5526		-
5527		-
5528		-
5529		-	9–1A–26. 1
5530		-
5531		-	(c) A jackpot won at a video lottery terminal that is not claimed by the winner 2
5532		-	within 182 days after the jackpot is won shall: 3
5533		-
5534		-	(2) be distributed as follows: 4
5535		-
5536		-	(i) 2.5% to the [Small, Minority, and Women–Owned Businesses] 5
5537		-	REINVEST FOR SUCCESS Account established under § 5–1501 of the Economic 6
5538		-	Development Article; 7
5539		-
5540		-	9–1A–27. 8
5541		-
5542		-	(a) Except as provided in subsections (b) and (c) of this section and § 9
5543		-	9–1A–26(a)(3) of this subtitle, on a properly approved transmittal prepared by the 10
5544		-	Commission, the Comptroller shall pay the following amounts from the proceeds of video 11
5545		-	lottery terminals at each video lottery facility: 12
5546		-
5547		-	(6) [(i) except as provided in items (ii) and (iii) of this item,] 1.5% to BE 13
5548		-	DISTRIBUTED EQUALLY BETWEEN 40% TO THE MARYLAND ECONOMIC INCLUSION 14
5549		-	FUND ESTABLISHED UNDE R § 5–505 OF THE ECONOMIC DEVELOPMENT ARTICLE 15
5550		-	AND 60% TO the [Small, Minority, and Women–Owned Businesses] REINVEST FOR 16
5551		-	SUCCESS Account established under § 5–1501 of the Economic Development Article; 17
5552		-
5553		-	[(ii) for fiscal year 2018, 1.5% to the General Fund to pay a portion of 18
5554		-	the costs of the grants provided under Chapters 6 and 607 of the Acts of the General 19
5555		-	Assembly of 2017; and 20
5556		-
5557		-	(iii) for fiscal years 2019 and 2020, 1.5% to the Education Trust Fund 21
5558		-	established under § 9–1A–30 of this subtitle;] 22
5559		-
5560		-	(c) (1) For the first 10 years of operations at a video lottery facility in Allegany 23
5561		-	County, on a properly approved transmittal prepared by the Commission, the Comptroller 24
5562		-	shall pay the following amounts from the proceeds of video lottery terminals at a video 25
5563		-	lottery facility in Allegany County: 26
5564		-
5565		-	(v) 1. except as provided in items 2 and 3 of this item, 0.75% to 27
5566		-	the [Small, Minority, and Women–Owned Businesses] REINVEST FOR SUCCESS Account 28
5567		-	established under § 5–1501 of the Economic Development Article; 29
5568		-
5569		-	[Subtitle 31. Commerce Subcabinet.] 30
5570		-
5571		-	[9–3101. 31
5572		-
5573		-	(a) In this subtitle the following words have the meanings indicated. 32 SENATE BILL 427 117
5574		-
5575		-
5576		-
5577		-	(b) “Secretary” means the Secretary of Commerce. 1
5578		-
5579		-	(c) “Subcabinet” means the Commerce Subcabinet.] 2
5580		-
5581		-	[9–3102. 3
5582		-
5583		-	(a) There is a Commerce Subcabinet. 4
5584		-
5585		-	(b) The Subcabinet is composed of the following members: 5
5586		-
5587		-	(1) the Secretary, or the Secretary’s designee; 6
5588		-
5589		-	(2) the Secretary of Transportation, or the Secretary’s designee; 7
5590		-
5591		-	(3) the Secretary of Labor, or the Secretary’s designee; 8
5592		-
5593		-	(4) the Secretary of the Environment, or the Secretary’s designee; 9
5594		-
5595		-	(5) the Secretary of Housing and Community Development, or the 10
5596		-	Secretary’s designee; 11
5597		-
5598		-	(6) the Secretary of Planning, or the Secretary’s designee; and 12
5599		-
5600		-	(7) the Special Secretary of Minority Affairs, or the Special Secretary’s 13
5601		-	designee.] 14
5602		-
5603		-	[9–3103. 15
5604		-
5605		-	The Subcabinet shall: 16
5606		-
5607		-	(1) advise the Governor on proposals to enhance the State’s business 17
5608		-	climate; 18
5609		-
5610		-	(2) gather information the Subcabinet considers necessary to promote the 19
5611		-	goals of the Subcabinet; 20
5612		-
5613		-	(3) collaborate to facilitate and expedite critical economic development 21
5614		-	projects in the State; and 22
5615		-
5616		-	(4) provide other assistance that may be required to further the goals of 23
5617		-	the Subcabinet and enhance the State’s business climate.] 24
5618		-
5619		-	[9–3104. 25
5620		-
5621		-	(a) The Secretary shall: 26 118 SENATE BILL 427
5622		-
5623		-
5624		-
5625		-	(1) chair the Subcabinet; 1
5626		-
5627		-	(2) convene the meetings of the Subcabinet; and 2
5628		-
5629		-	(3) be responsible for the oversight, direction, and accountability of the 3
5630		-	work of the Subcabinet. 4
5631		-
5632		-	(b) The Office of the Secretary of Commerce shall provide the primary staff 5
5633		-	support for the Subcabinet. 6
5634		-
5635		-	(c) The Subcabinet shall meet each month.] 7
5636		-
5637		-	Article – Tax – Property 8
5638		-
5639		-	9–103.1. 9
5640		-
5641		-	(a) (1) In this section the following words have the meanings indicated. 10
5642		-
5643		-	(7) “RISE zone” has the meaning stated in [§ 5–1401] § 10–137 of the 11
5644		-	Economic Development Article. 12
5645		-
5646		-	(c) (6) (i) If a RISE zone is renewed as provided under [§ 5–1404] § 13
5647		-	10–140 of the Economic Development Article, the governing body of a county or municipal 14
5648		-	corporation shall calculate the amount of the tax credit under this section equal to at least 15
5649		-	10% of the amount of property tax imposed on the eligible assessment of the qualified 16
5650		-	property for the sixth through tenth taxable years. 17
5651		-
5652		-	(e) When a Regional Institution Strategic Enterprise zone is designated by the 18
5653		-	[Secretary of Commerce] MARYLAND ECONOMIC DEVELOPMENT CORPORATION , the 19
5654		-	[Secretary] CORPORATION shall certify to the State Department of Assessments and 20
5655		-	Taxation: 21
5656		-
5657		-	(1) the real properties in the zone that are qualified properties for each 22
5658		-	taxable year for which the property tax credit under this section is to be granted; and 23
5659		-
5660		-	(2) the date that the real properties became qualified properties. 24
5661		-
5662		-	(f) Before property tax bills are sent, the State Department of Assessments and 25
5663		-	Taxation shall submit to the [Secretary of Commerce] MARYLAND ECONOMIC 26
5664		-	DEVELOPMENT CORPORATION a list containing: 27
5665		-
5666		-	(1) the location of each qualified property; 28
5667		-
5668		-	(2) the amount of the base year value for each qualified property; and 29
5669		-	SENATE BILL 427 119
5670		-
5671		-
5672		-	(3) the amount of the eligible assessment for each qualified property. 1
5673		-
5674		-	9–229. 2
5675		-
5676		-	(c) For each of the 5 taxable years immediately following the first revaluation of 3
5677		-	the property after completion of a voluntary cleanup or corrective action plan of a 4
5678		-	brownfields site, each participating taxing jurisdiction where a qualified brownfields site is 5
5679		-	located shall: 6
5680		-
5681		-	(2) contribute to the Maryland Economic [Development Assistance] 7
5682		-	COMPETITIVENESS Fund under § 5–313(8) of the Economic Development Article, 30% of 8
5683		-	the property tax attributable to the increase in the assessment of the brownfields site, 9
5684		-	including improvements added to the site within the 5–year period as provided under this 10
5685		-	subsection, over the assessment of the qualified brownfields site before the voluntary 11
5686		-	cleanup. 12
5687		-
5688		-	(g) A taxing jurisdiction’s contribution for each qualified brownfields site to the 13
5689		-	Maryland Economic [Development Assistance] COMPETITIVENESS Fund under 14
5690		-	subsection (c)(2) of this section shall be used only for brownfields sites in the taxing 15
5691		-	jurisdictions that have enacted a brownfields property tax credit ordinance. 16
5692		-
5693		-	Chapter 430 of the Acts of 2023 17
5694		-
5695		-	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 18
5696		-	1, 2023. It shall remain effective for a period of [4] 7 years and, at the end of June 30, 19
5697		-	[2027] 2030, this Act, with no further action required by the General Assembly, shall be 20
5698		-	abrogated and of no further force and effect. 21
5699		-
5700		-	Chapter 431 of the Acts of 2023 22
5701		-
5702		-	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
5703		-	1, 2023. It shall remain effective for a period of [4] 7 years and, at the end of June 30, 24
5704		-	[2027] 2030, this Act, with no further action required by the General Assembly, shall be 25
5705		-	abrogated and of no further force and effect. 26
5706		-
5707		-	SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 27
5708		-	as follows: 28
5709		-
5710		-	Article – Economic Development 29
5711		-
5712		-	6–1007. 30
5713		-
5714		-	(a) In this section, “investment”, “qualified investor”, and “qualified Maryland 31
5715		-	technology company” have the meanings stated in § 10–733 of the Tax – General Article. 32
5716		-	120 SENATE BILL 427
5717		-
5718		-
5719		-	(b) For a qualified opportunity fund that is a qualified investor in a qualified 1
5720		-	Maryland technology company under § 10–733 of the Tax – General Article, if the qualified 2
5721		-	Maryland technology company, on or after March 1, 2018, is newly established in or 3
5722		-	expands into an opportunity zone [in a county other than Allegany County, Dorchester 4
5723		-	County, Garrett County, or Somerset County]: 5
5724		-
5725		-	(1) the Level 1 opportunity zone enhancement is [33%] 65% of the 6
5726		-	investment in a qualified Maryland technology company, not to exceed [$300,000] 7
5727		-	$575,000; and 8
5728		-
5729		-	(2) the Level 2 opportunity zone enhancement is [50%] 75% of the 9
5730		-	investment in the qualified Maryland technology company, not to exceed [$500,000] 10
5731		-	$750,000. 11
5732		-
5733		-	(c) The enhanced tax credit percentages and maximums authorized under 12
5734		-	subsection (b) of this section are in substitution for and not in addition to the percentages 13
5735		-	and maximums under § 10–733(d) of the Tax – General Article. 14
5736		-
5737		-	Article – Economic Development 15
5738		-
5739		-	6–309. 16
5740		-
5741		-	(a) Subject to subsection (b) of this section, this subtitle and the tax credit 17
5742		-	authorized under it shall terminate on January 1, [2027] 2026. 18
5743		-
5744		-	(b) After termination of this subtitle: 19
5745		-
5746		-	(1) a business entity may be considered for eligibility for the tax credit 20
5747		-	authorized under this subtitle based on positions filled before termination of this subtitle, 21
5748		-	provided that the other requirements of the subtitle are satisfied; and 22
5749		-
5750		-	(2) tax credits earned may be carried forward and are subject to recapture 23
5751		-	in accordance with § 6–305 of this subtitle. 24
5752		-
5753		-	6–407. 25
5754		-
5755		-	(A) THIS SUBTITLE AND THE TAX CREDIT AUTHORIZE D UNDER IT SHALL 26
5756		-	TERMINATE ON JANUARY 1, 2026. 27
5757		-
5758		-	(B) AFTER THE TERMINATION OF THIS SUBTITLE , TAX CREDITS EARNED 28
5759		-	MAY BE CARRIED FORWA RD IN ACCORDANCE WIT H § 6–403 OF THIS SUBTITLE. 29
5760		-
5761		-	6–1007. 30
5762		-
5763		-	(a) In this section, “investment”, “qualified investor”, and “qualified Maryland 31
5764		-	technology company” have the meanings stated in § 10–733 of the Tax – General Article. 32 SENATE BILL 427 121
5765		-
5766		-
5767		-
5768		-	(b) For a qualified opportunity fund that is a qualified investor in a qualified 1
5769		-	Maryland technology company under § 10–733 of the Tax – General Article, if the qualified 2
5770		-	Maryland technology company, on or after March 1, 2018, is newly established in or 3
5771		-	expands into an opportunity zone [in a county other than Allegany County, Dorchester 4
5772		-	County, Garrett County, or Somerset County]: 5
5773		-
5774		-	(1) the Level 1 opportunity zone enhancement is [33%] 65% of the 6
5775		-	investment in a qualified Maryland technology company, not to exceed [$300,000] 7
5776		-	$575,000; and 8
5777		-
5778		-	(2) the Level 2 opportunity zone enhancement is [50%] 75% of the 9
5779		-	investment in the qualified Maryland technology company, not to exceed [$500,000] 10
5780		-	$750,000. 11
5781		-
5782		-	(c) The enhanced tax credit percentages and maximums authorized under 12
5783		-	subsection (b) of this section are in substitution for and not in addition to the percentages 13
5784		-	and maximums under § 10–733(d) of the Tax – General Article. 14
5785		-
5786		-	Article – Housing and Community Development 15
5787		-
5788		-	6–404. 16
5789		-
5790		-	(a) (1) For a contribution worth $500 or more in goods, money, or real property 17
5791		-	to an approved project, a business entity or an individual is entitled to a tax credit in the 18
5792		-	amount determined under subsection (b) of this section. 19
5793		-
5794		-	(2) No part of a tax credit under this section may be taken more than once. 20
5795		-
5796		-	(b) (1) Except as provided in [paragraph (2)] PARAGRAPHS (2) AND (3) of 21
5797		-	this subsection, the credit allowed to a business entity or an individual under this section 22
5798		-	equals 50% of the amount of contributions: 23
5799		-
5800		-	(i) that the Department approves under subsection (c) of this 24
5801		-	section; and 25
5802		-
5803		-	(ii) that were made during the taxable year for which the credit is 26
5804		-	claimed. 27
5805		-
5806		-	(2) IF THE APPROVED PROJE CT OR BUSINESS ENTIT Y IS LOCATED 28
5807		-	WITHIN A REGIONAL INSTITUTION STRATEGIC ENTERPRISE ZONE DESIG NATED 29
5808		-	UNDER TITLE 10, SUBTITLE 1 OF THE ECONOMIC DEVELOPMENT ARTICLE OR A 30
5809		-	RISE ZONE CATCHMENT AREA , AS DEFINED UNDER § 4–509 OF THIS ARTICLE, THE 31
5810		-	TAX CREDIT ALLOWED T O A BUSINESS ENTITY OR AN INDIVIDUAL UND ER THIS 32
5811		-	SECTION EQUALS 60% OF THE AMOUNT OF THE CONTRIBUTIONS DESCRIBED UNDER 33
5812		-	PARAGRAPH (1) OF THIS SUBSECTION . 34 122 SENATE BILL 427
5813		-
5814		-
5815		-
5816		-	[(2)] (3) The credit allowed under this section for any taxable year may 1
5817		-	not exceed the lesser of: 2
5818		-
5819		-	(i) $250,000; and 3
5820		-
5821		-	(ii) the total amount of tax otherwise payable by the business entity 4
5822		-	or individual for the taxable year. 5
5823		-
5824		-	[(3)] (4) Any excess credit that would be allowed but for the limits of 6
5825		-	paragraph [(2)] (3) of this subsection may be carried over and applied as a credit for up to 7
5826		-	5 taxable years after the taxable year in which the contribution was made, until the full 8
5827		-	amount of the excess is used. 9
5828		-
5829		-	(c) (1) To qualify for a credit for a contribution under this section, before 10
5830		-	making a contribution, a business entity or an individual shall apply for and receive 11
5831		-	approval of the contribution from the Department. 12
5832		-
5833		-	(2) Each application for approval of a contribution shall contain: 13
5834		-
5835		-	(i) the name of the approved project to which the contribution will 14
5836		-	be made; 15
5837		-
5838		-	(ii) the amount of the contribution; and 16
5839		-
5840		-	(iii) a certification by an independent and unrelated third party as to 17
5841		-	the value of any nonmonetary contribution included or, for new goods, an invoice or receipt 18
5842		-	certifying the contribution’s net cost to the business entity or individual. 19
5843		-
5844		-	(3) The Department may not approve an application if it determines that: 20
5845		-
5846		-	(i) the maximum amount of contributions eligible for a tax credit for 21
5847		-	the project for the fiscal year will be exceeded by the sum of: 22
5848		-
5849		-	1. the amount of the proposed contribution; and 23
5850		-
5851		-	2. the total amount of contributions previously approved for 24
5852		-	that project for the fiscal year; or 25
5853		-
5854		-	(ii) the applicant has overstated the value of a nonmonetary 26
5855		-	contribution. 27
5856		-
5857		-	(4) On or before January 31 of each year, the Department shall report to 28
5858		-	the Department of Assessments and Taxation, the Comptroller, and the Maryland 29
5859		-	Insurance Administration the contributions that the Department has approved under this 30
5860		-	section in the preceding calendar year. 31
5861		-	SENATE BILL 427 123
5862		-
5863		-
5864		-	Article – Tax – General 1
5865		-
5866		-	10–702. 2
5867		-
5868		-	(a) (1) In this section the following words have the meanings indicated. 3
5869		-
5870		-	(4) (ii) “Enterprise zone” includes a Regional Institution Strategic 4
5871		-	Enterprise zone established under [Title 5, Subtitle 14] TITLE 10, SUBTITLE 1 of the 5
5872		-	Economic Development Article. 6
5873		-
5874		-	10–721. 7
5875		-
5876		-	(a) (1) In this section the following words have the meanings indicated. 8
5877		-
5878		-	(2) “Department” means the Department of Commerce. 9
5879		-
5880		-	(3) “Maryland base amount” means the base amount as defined in § 41(c) 10
5881		-	of the Internal Revenue Code that is attributable to Maryland, determined by: 11
5882		-
5883		-	(i) substituting “Maryland qualified research and development 12
5884		-	expense” for “qualified research expense”; 13
5885		-
5886		-	(ii) substituting “Maryland qualified research and development” for 14
5887		-	“qualified research”; and 15
5888		-
5889		-	(iii) using, instead of the “fixed base percentage”: 16
5890		-
5891		-	1. the percentage that the Maryland qualified research and 17
5892		-	development expense for the 4 taxable years immediately preceding the taxable year in 18
5893		-	which the expense is incurred is of the gross receipts for those years; or 19
5894		-
5895		-	2. for a taxpayer who has fewer than 4 but at least 1 prior 20
5896		-	taxable year, the percentage as determined under item 1 of this item, determined using the 21
5897		-	number of immediately preceding taxable years that the taxpayer has. 22
5898		-
5899		-	(4) “Maryland gross receipts” means gross receipts that are reasonably 23
5900		-	attributable to the conduct of a trade or business in this State, determined under methods 24
5901		-	prescribed by the Comptroller based on standards similar to the standards under § 10–402 25
5902		-	of this title. 26
5903		-
5904		-	(5) “Maryland qualified research and development” means qualified 27
5905		-	research as defined in § 41(d) of the Internal Revenue Code that is conducted in this State 28
5906		-	IN THE SECTORS INCLU DED ON THE LIST ESTA BLISHED BY THE DEPARTMENT IN 29
5907		-	ACCORDANCE WITH § 2.5–106 OF THE ECONOMIC DEVELOPMENT ARTICLE. 30
5908		-	124 SENATE BILL 427
5909		-
5910		-
5911		-	(6) “Maryland qualified research and development expenses” means 1
5912		-	qualified research expenses as defined in § 41(b) of the Internal Revenue Code incurred for 2
5913		-	Maryland qualified research and development. 3
5914		-
5915		-	(7) “Net book value assets” means the total of a business’s net value of 4
5916		-	assets, including intangibles but not including liabilities, minus depreciation and 5
5917		-	amortization. 6
5918		-
5919		-	(8) “Small business” means a for–profit corporation, limited liability 7
5920		-	company, partnership, or sole proprietorship with net book value assets totaling, at the 8
5921		-	beginning or the end of the taxable year for which Maryland qualified research and 9
5922		-	development expenses are incurred, as reported on the balance sheet, less than $5,000,000. 10
5923		-
5924		-	(b) (1) The purpose of the Research and Development Tax Credit Program is 11
5925		-	to foster increased research activities and expenditures WITHIN TARGET INDUST RIES 12
5926		-	AND SECTORS in Maryland. 13
5927		-
5928		-	(2) Subject to the limitations of this section, an individual or a corporation 14
5929		-	may claim credits against the State income tax in an amount equal to 10% of the amount 15
5930		-	by which the Maryland qualified research and development expenses paid or incurred by 16
5931		-	the individual or corporation during the taxable year exceed the Maryland base amount for 17
5932		-	the individual or corporation. 18
5933		-
5934		-	(c) (1) By November 15 of the calendar year following the end of the taxable 19
5935		-	year in which the Maryland qualified research and development expenses were incurred, 20
5936		-	an individual or corporation shall submit an application to the Department for the credits 21
5937		-	allowed under subsection (b) of this section. 22
5938		-
5939		-	(2) For each calendar year, the total amount of credits approved by the 23
5940		-	Department under subsection (b) of this section may not exceed $12,000,000. 24
5941		-
5942		-	(3) (i) Except as provided in paragraph (5) of this subsection, each 25
5943		-	calendar year, the Department shall reserve $3,500,000 of the credits authorized under 26
5944		-	subsection (b) of this section for applicants that are small businesses. 27
5945		-
5946		-	(ii) Subject to paragraph (5) of this subsection, if the total amount of 28
5947		-	credits applied for by all small businesses under this section exceeds the amount specified 29
5948		-	under subparagraph (i) of this paragraph, the Department shall approve a credit for each 30
5949		-	applicant in an amount equal to the product of multiplying the credit applied for by the 31
5950		-	applicant times a fraction: 32
5951		-
5952		-	1. the numerator of which is the amount specified under 33
5953		-	subparagraph (i) of this paragraph; and 34
5954		-
5955		-	2. the denominator of which is the total of all credits applied 35
5956		-	for by all small businesses under this section in the calendar year. 36
5957		-	SENATE BILL 427 125
5958		-
5959		-
5960		-	(4) (i) Except as provided in paragraph (5) of this subsection, for each 1
5961		-	calendar year, the total amount of credits approved by the Department under this section 2
5962		-	to applicants that are not small businesses may not exceed $8,500,000. 3
5963		-
5964		-	(ii) Subject to paragraph (5) of this subsection, if the total amount of 4
5965		-	credits applied for by all applicants that are not small businesses exceeds the maximum 5
5966		-	specified under subparagraph (i) of this paragraph, the Department shall approve a credit 6
5967		-	under this section for each applicant in an amount equal to the product of multiplying the 7
5968		-	credit applied for by the applicant times a fraction: 8
5969		-
5970		-	1. the numerator of which is the maximum specified under 9
5971		-	subparagraph (i) of this paragraph; and 10
5972		-
5973		-	2. the denominator of which is the total of all credits applied 11
5974		-	for by all applicants that are not small businesses in the calendar year. 12
5975		-
5976		-	(5) (i) For any calendar year, if the total amount of credits applied for 13
5977		-	by all small businesses is less than $3,500,000, the amount specified under paragraph (4)(i) 14
5978		-	of this subsection shall be increased for that calendar year by an amount equal to the 15
5979		-	difference between $3,500,000 and the total amount of credits applied for by small 16
5980		-	businesses. 17
5981		-
5982		-	(ii) For any calendar year, if the total amount of credits applied for 18
5983		-	by all applicants that are not small businesses is less than $8,500,000, the amount specified 19
5984		-	under paragraph (3)(i) of this subsection shall be increased for that calendar year by an 20
5985		-	amount equal to the difference between $8,500,000 and the total amount of credits applied 21
5986		-	for by applicants that are not small businesses. 22
5987		-
5988		-	(6) The Department may not approve a tax credit for any single applicant 23
5989		-	in an amount exceeding $250,000. 24
5990		-
5991		-	(7) By February 15 of the calendar year following the end of the year in 25
5992		-	which the individual or corporation submitted an application for the credit in accordance 26
5993		-	with paragraph (1) of this subsection, the Department shall certify to the individual or 27
5994		-	corporation the amount of the research and development tax credits approved by the 28
5995		-	Department for the individual or corporation under this section. 29
5996		-
5997		-	(8) To claim the approved credits allowed under this section, an individual 30
5998		-	or corporation shall: 31
5999		-
6000		-	(i) 1. file an amended income tax return for the taxable year in 32
6001		-	which the Maryland qualified research and development expense was incurred; and 33
6002		-
6003		-	2. attach a copy of the Department’s certification of the 34
6004		-	approved credit amount to the amended income tax return; or 35
6005		-	126 SENATE BILL 427
6006		-
6007		-
6008		-	(ii) subject to subsection (d) of this section, attach a copy of the 1
6009		-	Department’s certification of the approved credit amount to an income tax return filed for 2
6010		-	any of the 7 taxable years after the taxable year in which the Maryland qualified research 3
6011		-	and development expenses were incurred. 4
6012		-
6013		-	(d) (1) Except as provided in paragraph (2) of this subsection, if the credit 5
6014		-	allowed under this section in any taxable year exceeds the State income tax for that taxable 6
6015		-	year, an individual or corporation may apply the excess as a credit against the State income 7
6016		-	tax for succeeding taxable years until the earlier of: 8
6017		-
6018		-	(i) the full amount of the excess is used; or 9
6019		-
6020		-	(ii) the expiration of the 7th taxable year after the taxable year in 10
6021		-	which the Maryland qualified research and development expense was incurred. 11
6022		-
6023		-	(2) If the credit allowed under this section in any taxable year exceeds the 12
6024		-	State income tax for that taxable year, a small business may claim a refund in the amount 13
6025		-	of the excess. 14
6026		-
6027		-	(e) (1) In determining the amount of the credit under this section: 15
6028		-
6029		-	(i) all members of the same controlled group of corporations, as 16
6030		-	defined under § 41(f) of the Internal Revenue Code, shall be treated as a single taxpayer; 17
6031		-	and 18
6032		-
6033		-	(ii) the credit allowable by this section to each member shall be its 19
6034		-	proportionate shares of the qualified research expenses giving rise to the credit. 20
6035		-
6036		-	(2) The Comptroller shall adopt regulations providing for: 21
6037		-
6038		-	(i) determination of the amount of the credit under this section in 22
6039		-	the case of trades or businesses, whether or not incorporated, that are under common 23
6040		-	control; 24
6041		-
6042		-	(ii) pass–through and allocation of the credit in the case of estates 25
6043		-	and trusts, partnerships, unincorporated trades or businesses, and S corporations; 26
6044		-
6045		-	(iii) adjustments in the case of acquisitions and dispositions 27
6046		-	described in § 41(f)(3) of the Internal Revenue Code; and 28
6047		-
6048		-	(iv) determination of the credit in the case of short taxable years. 29
6049		-
6050		-	(3) The regulations adopted under paragraph (2) of this subsection shall be 30
6051		-	based on principles similar to the principles applicable under § 41 of the Internal Revenue 31
6052		-	Code and regulations adopted thereunder. 32
6053		-	SENATE BILL 427 127
6054		-
6055		-
6056		-	(f) (1) The Department of Commerce and the Comptroller jointly shall adopt 1
6057		-	regulations to prescribe standards for determining when research or development is 2
6058		-	considered conducted in the State for purposes of determining the credit under this section. 3
6059		-
6060		-	(2) In adopting regulations under this subsection, the Department and the 4
6061		-	Comptroller may consider: 5
6062		-
6063		-	(i) the location where services are performed; 6
6064		-
6065		-	(ii) the residence or business location of the person or persons 7
6066		-	performing services; 8
6067		-
6068		-	(iii) the location where supplies used in research and development 9
6069		-	are consumed; and 10
6070		-
6071		-	(iv) any other factors that the Department determines are relevant 11
6072		-	for the determination. 12
6073		-
6074		-	(g) In accordance with § 2.5–109 of the Economic Development Article, the 13
6075		-	Department shall report on the credits approved under this section. 14
6076		-
6077		-	(h) If the provisions of § 41 of the Internal Revenue Code governing the federal 15
6078		-	research and development tax credit are repealed or terminate, the provisions of this 16
6079		-	section continue to operate as if the provisions of § 41 of the Internal Revenue Code remain 17
6080		-	in effect, and the Maryland research and development tax credit under this section shall 18
6081		-	continue to be available. 19
6082		-
6083		-	(I) (1) THE DEPARTMENT MAY NOT AP PROVE A CREDIT UNDER THIS 20
6084		-	SECTION FOR A TAXABL E YEAR BEGINNING AFT ER DECEMBER 31, 2030. 21
6085		-
6086		-	(2) IF A TAXPAYER’S TAXABLE YEAR FOR I NCOME TAX PURPOSES I S 22
6087		-	NOT THE CALENDAR YEA R, FOR THE TAXABLE YEAR THAT BEGINS IN CALEN DAR 23
6088		-	YEAR 2030, THE TAXPAYER MAY APP LY FOR ONLY A PRORAT ED CREDIT FOR 24
6089		-	RESEARCH AND DEVELOP MENT EXPENSES PAID O R INCURRED IN THE TA XABLE 25
6090		-	YEAR FOR THAT PART O F THE TAXABLE YEAR T HAT FALLS IN CALENDA R YEAR 2030. 26
6091		-
6092		-	10–725. 27
6093		-
6094		-	(a) (1) In this section the following words have the meanings indicated. 28
6095		-
6096		-	(2) “Biotechnology company” means a company organized for profit that is 29
6097		-	primarily engaged in, or within 2 months will be primarily engaged in, the research, 30
6098		-	development, or commercialization of innovative and proprietary technology that 31
6099		-	comprises, interacts with, or analyzes biological material including biomolecules (DNA, 32
6100		-	RNA, or protein), cells, tissues, or organs. 33
	5976	+
	5977	+	(2) “Biotechnology company” means a company organized for profit that is 32
	5978	+	primarily engaged in, or within 2 months will be primarily engaged in, the research, 33 SENATE BILL 427 125
	5979	+
	5980	+
	5981	+	development, or commercialization of innovative and proprietary technology that 1
	5982	+	comprises, interacts with, or analyzes biological material including biomolecules (DNA, 2
	5983	+	RNA, or protein), cells, tissues, or organs. 3
	5984	+
	5985	+	(3) (i) “Company” means any entity of any form duly organized and 4
	5986	+	existing under the laws of any jurisdiction for the purpose of conducting business for profit. 5
	5987	+
	5988	+	(ii) “Company” does not include a sole proprietorship. 6
	5989	+
	5990	+	(4) “Department” means the Department of Commerce. 7
	5991	+
	5992	+	(5) (i) “Investment” means the contribution of money in cash or cash 8
	5993	+	equivalents expressed in United States dollars, at a risk of loss, to a qualified Maryland 9
	5994	+	biotechnology company in exchange for stock, a partnership or membership interest, or 10
	5995	+	other ownership interest in the equity of the qualified Maryland biotechnology company, 11
	5996	+	title to which ownership interest shall vest in the qualified investor. 12
	5997	+
	5998	+	(ii) “Investment” does not include debt. 13
	5999	+
	6000	+	(iii) For purposes of this section, an investment is at risk of loss when 14
	6001	+	its repayment entirely depends upon the success of the business operations of the qualified 15
	6002	+	company. 16
	6003	+
	6004	+	(6) (i) “Qualified investor” means any individual or entity that invests 17
	6005	+	at least $25,000 in a qualified Maryland biotechnology company and that is required to file 18
	6006	+	an income tax return in any jurisdiction. 19
	6007	+
	6008	+	(ii) “Qualified investor” does not include: 20
	6009	+
	6010	+	1. a qualified pension plan, individual retirement account, or 21
	6011	+	other qualified retirement plan under the Employee Retirement Income Security Act of 22
	6012	+	1974, as amended, or fiduciaries or custodians under such plans, or similar tax–favored 23
	6013	+	plans or entities under the laws of other countries; or 24
	6014	+
	6015	+	2. a founder or current employee of the qualified Maryland 25
	6016	+	biotechnology company, if the company has been in active business for more than 5 years. 26
	6017	+
	6018	+	(7) (i) “Qualified Maryland biotechnology company” means a 27
	6019	+	biotechnology company that: 28
	6020	+
	6021	+	1. has its headquarters and base of operations in this State; 29
	6022	+
	6023	+	2. has fewer than 50 full–time employees; 30
	6024	+
	6025	+	3. has been in active business no longer than 12 years; 31
	6026	+
	6027	+	4. does not have its securities publicly traded on any 32 126 SENATE BILL 427
	6028	+
	6029	+
	6030	+	exchange; 1
	6031	+
	6032	+	5. has been certified as a biotechnology company by the 2
	6033	+	Department; and 3
	6034	+
	6035	+	6. the qualified investors in the company have not received 4
	6036	+	more than $7,000,000 in tax credits in the aggregate under this section. 5
	6037	+
	6038	+	(ii) “Qualified Maryland biotechnology company” includes a 6
	6039	+	company that, within 2 months of the receipt of the investment, has met the requirements 7
	6040	+	of subparagraph (i) of this paragraph. 8
	6041	+
	6042	+	(8) “Secretary” means the Secretary of Commerce. 9
	6043	+
	6044	+	(b) (2) Subject to paragraphs (3) and (4) of this subsection and subsections (d) 10
	6045	+	and (e) of this section, for the taxable year in which an investment in a qualified Maryland 11
	6046	+	biotechnology company is made, a qualified investor may claim a credit against the State 12
	6047	+	income tax in an amount equal to the amount of tax credit stated in the final credit 13
	6048	+	certificate approved by the Secretary for the investment as provided under this section. 14
	6049	+
	6050	+	(5) IF THE QUALIFIED INVE STOR ALLOWED TO CLAI M A CREDIT 15
	6051	+	UNDER PARAGRAPH (2) OF THIS SUBSECTION I S A PASS–THROUGH ENTITY THAT 16
	6052	+	PAYS THE INCOME TAX IMPOSED UNDER § 10–102.1 OF THIS TITLE ON BEH ALF OF 17
	6053	+	ALL MEMBERS OF THE P ASS–THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY 18
	6054	+	CLAIM AND ALLOCATE T HE CREDIT AMONG MEMB ERS OF THE PASS –THROUGH 19
	6055	+	ENTITY IN ANY MANNER . 20
	6056	+
	6057	+	(d) (1) The tax credit allowed in an initial tax credit certificate issued under 21
	6058	+	this section is: 22
	6059	+
	6060	+	(i) except as provided in item (ii) of this paragraph, 33% of the 23
	6061	+	investment in a qualified Maryland biotechnology company, not to exceed $250,000; or 24
	6062	+
	6063	+	(ii) [50%] 75% of the investment in the qualified Maryland 25
	6064	+	biotechnology company, not to exceed [$500,000] $750,000, if a qualified Maryland 26
	6065	+	biotechnology company[: 27
	6066	+
	6067	+	1. is located in Allegany County, Dorchester County, Garrett 28
	6068	+	County, or Somerset County; or 29
	6069	+
	6070	+	2.] is located in a Regional Institution Strategic Enterprise 30
	6071	+	zone that is designated under Title 5, Subtitle 14 of the Economic Development Article[, is 31
	6072	+	based on technology that was developed at a qualified institution within that zone, and has 32
	6073	+	been in active business not longer than 7 years]. 33
	6074	+
	6075	+	(2) During any fiscal year, the Secretary may not certify eligibility for tax 34 SENATE BILL 427 127
	6076	+
	6077	+
	6078	+	credits for investments in a single qualified Maryland biotechnology company that in the 1
	6079	+	aggregate exceed 10% of the total appropriations to the Maryland Biotechnology 2
	6080	+	Investment Tax Credit Reserve Fund for that fiscal year. 3
	6081	+
	6082	+	(3) (I) If the tax credit allowed under this section in any taxable year 4
	6083	+	exceeds the total tax otherwise payable by the qualified investor for that taxable year, the 5
	6084	+	qualified investor may claim a refund in the amount of the excess. 6
	6085	+
	6086	+	(II) IF THE QUALIFIED INVE STOR ALLOWED TO CLAI M A REFUND 7
	6087	+	UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH IS A PASS–THROUGH ENTITY THAT 8
	6088	+	PAYS THE INCOME TAX IMPOSED UNDER § 10–102.1 OF THIS TITLE ON BEHALF OF 9
	6089	+	ALL MEMBERS OF THE P ASS–THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY 10
	6090	+	CLAIM AND ALLOCATE T HE CREDIT AMONG MEMB ERS OF THE 11
	6091	+	PASS–THROUGH ENTITY IN AN Y MANNER. 12
	6092	+
	6093	+	10–730. 13
	6094	+
	6095	+	(a) (1) In this section the following words have the meanings indicated. 14
	6096	+
	6097	+	(4) (i) “Film production activity” means: 15
	6098	+
	6099	+	1. the production of a film or video project that is intended 16
	6100	+	for nationwide commercial distribution; and 17
	6101	+
	6102	+	2. for a television series, each season of the television series. 18
	6103	+
	6104	+	(ii) “Film production activity” includes the production of: 19
	6105	+
	6106	+	1. a feature film; 20
	6107	+
	6108	+	2. a television project; 21
	6109	+
	6110	+	3. a commercial; 22
	6111	+
	6112	+	4. a corporate film; 23
	6113	+
	6114	+	5. a music video; 24
	6115	+
	6116	+	6. a digital animation project; 25
	6117	+
	6118	+	7. a documentary; or 26
	6119	+
	6120	+	8. a talk, reality, or game show. 27
	6121	+
	6122	+	(iii) “Film production activity” does not include the production of: 28
6101	6123		128 SENATE BILL 427
6102	6124
6103	6125
6104		-	(3) (i) “Company” means any entity of any form duly organized and 1
6105		-	existing under the laws of any jurisdiction for the purpose of conducting business for profit. 2
6106		-
6107		-	(ii) “Company” does not include a sole proprietorship. 3
6108		-
6109		-	(4) “Department” means the Department of Commerce. 4
6110		-
6111		-	(5) (i) “Investment” means the contribution of money in cash or cash 5
6112		-	equivalents expressed in United States dollars, at a risk of loss, to a qualified Maryland 6
6113		-	biotechnology company in exchange for stock, a partnership or membership interest, or 7
6114		-	other ownership interest in the equity of the qualified Maryland biotechnology company, 8
6115		-	title to which ownership interest shall vest in the qualified investor. 9
6116		-
6117		-	(ii) “Investment” does not include debt. 10
6118		-
6119		-	(iii) For purposes of this section, an investment is at risk of loss when 11
6120		-	its repayment entirely depends upon the success of the business operations of the qualified 12
6121		-	company. 13
6122		-
6123		-	(6) (i) “Qualified investor” means any individual or entity that invests 14
6124		-	at least $25,000 in a qualified Maryland biotechnology company and that is required to file 15
6125		-	an income tax return in any jurisdiction. 16
6126		-
6127		-	(ii) “Qualified investor” does not include: 17
6128		-
6129		-	1. a qualified pension plan, individual retirement account, or 18
6130		-	other qualified retirement plan under the Employee Retirement Income Security Act of 19
6131		-	1974, as amended, or fiduciaries or custodians under such plans, or similar tax–favored 20
6132		-	plans or entities under the laws of other countries; or 21
6133		-
6134		-	2. a founder or current employee of the qualified Maryland 22
6135		-	biotechnology company, if the company has been in active business for more than 5 years. 23
6136		-
6137		-	(7) (i) “Qualified Maryland biotechnology company” means a 24
6138		-	biotechnology company that: 25
6139		-
6140		-	1. has its headquarters and base of operations in this State; 26
6141		-
6142		-	2. has fewer than 50 full–time employees; 27
6143		-
6144		-	3. has been in active business no longer than 12 years; 28
6145		-
6146		-	4. does not have its securities publicly traded on any 29
6147		-	exchange; 30
6148		-
6149		-	5. has been certified as a biotechnology company by the 31
6150		-	Department; and 32 SENATE BILL 427 129
6151		-
6152		-
6153		-
6154		-	6. the qualified investors in the company have not received 1
6155		-	more than $7,000,000 in tax credits in the aggregate under this section. 2
6156		-
6157		-	(ii) “Qualified Maryland biotechnology company” includes a 3
6158		-	company that, within 2 months of the receipt of the investment, has met the requirements 4
6159		-	of subparagraph (i) of this paragraph. 5
6160		-
6161		-	(8) “Secretary” means the Secretary of Commerce. 6
6162		-
6163		-	(b) (2) Subject to paragraphs (3) and (4) of this subsection and subsections (d) 7
6164		-	and (e) of this section, for the taxable year in which an investment in a qualified Maryland 8
6165		-	biotechnology company is made, a qualified investor may claim a credit against the State 9
6166		-	income tax in an amount equal to the amount of tax credit stated in the final credit 10
6167		-	certificate approved by the Secretary for the investment as provided under this section. 11
6168		-
6169		-	(5) IF FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025, 12
6170		-	IF THE QUALIFIED INVEST OR ALLOWED TO CLAIM A CREDIT UNDER PARAG RAPH (2) 13
6171		-	OF THIS SUBSECTION I S A PASS–THROUGH ENTITY THAT PAYS THE INCOME TAX 14
6172		-	IMPOSED UNDER § 10–102.1 OF THIS TITLE ON BEH ALF OF ALL MEMBERS O F THE 15
6173		-	PASS–THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY C LAIM AND ALLOCATE 16
6174		-	THE CREDIT AMONG MEM BERS OF THE PASS –THROUGH ENTITY IN AN Y MANNER. 17
6175		-
6176		-	(d) (1) The tax credit allowed in an initial tax credit certificate issued under 18
6177		-	this section is: 19
6178		-
6179		-	(i) except as provided in item (ii) of this paragraph, 33% of the 20
6180		-	investment in a qualified Maryland biotechnology company, not to exceed $250,000; or 21
6181		-
6182		-	(ii) [50%] 75% of the investment in the qualified Maryland 22
6183		-	biotechnology company, not to exceed [$500,000] $750,000, if a qualified Maryland 23
6184		-	biotechnology company[: 24
6185		-
6186		-	1. is located in Allegany County, Dorchester County, Garrett 25
6187		-	County, or Somerset County; or 26
6188		-
6189		-	2.] is located in a Regional Institution Strategic Enterprise 27
6190		-	zone that is designated under Title 5, Subtitle 14 of the Economic Development Article[, is 28
6191		-	based on technology that was developed at a qualified institution within that zone, and has 29
6192		-	been in active business not longer than 7 years]. 30
6193		-
6194		-	(2) During any fiscal year, the Secretary may not certify eligibility for tax 31
6195		-	credits for investments in a single qualified Maryland biotechnology company that in the 32
6196		-	aggregate exceed 10% of the total appropriations to the Maryl and Biotechnology 33
6197		-	Investment Tax Credit Reserve Fund for that fiscal year. 34
6198		-	130 SENATE BILL 427
6199		-
6200		-
6201		-	(3) (I) If the tax credit allowed under this section in any taxable year 1
6202		-	exceeds the total tax otherwise payable by the qualified investor for that taxable year, the 2
6203		-	qualified investor may claim a refund in the amount of the excess. 3
6204		-
6205		-	(II) IF FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 4
6206		-	2025, IF THE QUALIFIED INVEST OR ALLOWED TO CLAIM A REFUND UNDER 5
6207		-	SUBPARAGRAPH (I) OF THIS PARAGRAPH IS A PASS–THROUGH ENTITY THAT PAYS 6
6208		-	THE INCOME TAX IMPOSED UNDE R § 10–102.1 OF THIS TITLE ON BEH ALF OF ALL 7
6209		-	MEMBERS OF THE PASS –THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY C LAIM 8
6210		-	AND ALLOCATE THE CRE DIT AMONG MEMBERS OF THE PASS–THROUGH ENTITY IN 9
6211		-	ANY MANNER . 10
6212		-
6213		-	(K) FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025, THE 11
6214		-	COMPTROLLER SHALL PRO VIDE THE MEANS FOR A QUALIFIED INVESTOR T O FILE 12
6215		-	THE INVESTOR’S RETURN ELECTRONICA LLY. 13
6216		-
6217		-	10–730. 14
6218		-
6219		-	(a) (1) In this section the following words have the meanings indicated. 15
6220		-
6221		-	(4) (i) “Film production activity” means: 16
6222		-
6223		-	1. the production of a film or video project that is intended 17
6224		-	for nationwide commercial distribution; and 18
6225		-
6226		-	2. for a television series, each season of the television series. 19
6227		-
6228		-	(ii) “Film production activity” includes the production of: 20
6229		-
6230		-	1. a feature film; 21
6231		-
6232		-	2. a television project; 22
6233		-
6234		-	3. a commercial; 23
6235		-
6236		-	4. a corporate film; 24
6237		-
6238		-	5. a music video; 25
6239		-
6240		-	6. a digital animation project; 26
6241		-
6242		-	7. a documentary; or 27
6243		-
6244		-	8. a talk, reality, or game show. 28
6245		-
6246		-	(iii) “Film production activity” does not include production of: 29 SENATE BILL 427 131
6247		-
6248		-
6249		-
6250	6126		1. a student film; 1
6251	6127
6252	6128		2. a noncommercial personal video; 2
6253	6129
6254	6130		3. a sports broadcast; 3
6255	6131
6256	6132		4. a broadcast of a live event; 4
6257	6133
6258	6134		5. a video, computer, or social networking game; 5
6259	6135
6260	6136		6. pornography; 6
6261	6137
6262	6138		7. an infomercial; 7
6263	6139
6264		-	8. a digital ~~project~~ or an animation project other than a 8
	6140	+	8. a digital product or an animation project other than a 8
6265	6141		digital animation project; or 9
6266	6142
6267	6143		9. a multimedia project. 10
6268	6144
6269	6145		(7) “Qualified film production entity” means an entity that: 11
6270	6146
6271	6147		(i) is carrying out a film production activity; and 12
6272	6148
6273	6149		(ii) the Secretary determines to be eligible for the tax credit under 13
6274	6150		this section in accordance with subsection (c) of this section. 14
6275	6151
6276	6152		(b) (1) A qualified film production entity may claim a credit against the State 15
6277	6153		income tax for film production activities in the State in an amount equal to the amount 16
6278	6154		stated in the final tax credit certificate approved by the Secretary for film production 17
6279	6155		activities. 18
6280	6156
6281	6157		(2) If the tax credit allowed under this section in any taxable year exceeds 19
6282	6158		the total tax otherwise payable by the qualified film production entity for that taxable year, 20
6283	6159		the qualified film production entity may claim a refund in the amount of the excess. 21
6284	6160
6285		-	(3) (I) IN ACCORDANCE WITH RE GULATIONS ADOPTED BY THE 22
6286		-	DEPARTMENT AND THE COMPTROLLER UNDER SUB SECTION (I) OF THIS SECTION , 23
6287		-	THE AMOUNT OF THE TA X CREDIT ALLOWED BUT NOT USED FOR FILM PR ODUCTION 24
6288		-	ACTIVITIES IN THE STATE MAY BE TRANSFER RED IN WHOLE OR IN P ART TO ANY 25
6289		-	INDIVIDUAL OR BUSINE SS ENTITY. 26
6290		-
6291		-	(II) 1. FOR THE TAXABLE YEAR OF ANY TRANSFER UNDE R 27
6292		-	THIS PARAGRAPH , THE TRANSFEREE UNDER SUBPARAGRAPH (I) OF THIS 28
6293		-	PARAGRAPH MAY APPLY THE TAX CREDIT AGAIN ST THE TOTAL TAX OTH ERWISE 29
6294		-	PAYABLE BY THE TRANS FEREE IN ANY TAXABLE YEAR. 30 132 SENATE BILL 427
6295		-
6296		-
6297		-
6298		-	2. IF THE TAX CREDIT EXC EEDS THE STATE INCOME TAX 1
6299		-	OF THE TRANSFEREE IN ANY TAXABLE YEAR, THE TRANSFEREE : 2
6300		-
6301		-	A. MAY CLAIM A REFUND I N THE AMOUNT OF THE 3
6302		-	EXCESS; OR 4
6303		-
6304		-	B. MAY TRANSFER THE REM AINDER OF THE TAX CR EDIT 5
6305		-	TO ANY INDIVIDUAL OR BUSINESS ENTITY . 6
6306		-
6307		-	(c) (1) Before beginning a film production activity, a film production entity 7
6308		-	shall submit to the Department an application to qualify as a film production entity. 8
6309		-
6310		-	(2) The application shall describe the anticipated film production activity, 9
6311		-	including: 10
6312		-
6313		-	(i) the projected total budget; 11
6314		-
6315		-	(ii) the estimated number of Maryland resident and out–of–state 12
6316		-	employees and total wages to be paid; and 13
6317		-
6318		-	(iii) the anticipated dates for carrying out the major elements of the 14
6319		-	film production activity. 15
6320		-
6321		-	(3) Except as provided in subsection (h) of this section, to qualify as a film 16
6322		-	production entity, the estimated total direct costs incurred in the State must exceed 17
6323		-	$250,000. 18
6324		-
6325		-	(4) The application shall include any other information required by the 19
6326		-	Secretary. 20
6327		-
6328		-	(5) For a film production entity with total direct costs that exceed $250,000, 21
6329		-	the Secretary may require the information provided in an application to be verified by an 22
6330		-	independent auditor selected and paid for by the film production entity seeking 23
6331		-	certification. 24
6332		-
6333		-	(6) The Secretary shall: 25
6334		-
6335		-	(i) determine if the film production entity qualifies for the credit 26
6336		-	under this section; and 27
6337		-
6338		-	(ii) notify the Comptroller of the estimated amount of total direct 28
6339		-	costs and the taxable year the credit will be claimed. 29
6340		-
6341		-	(7) (I) A QUALIFIED FILM PRODU CTION ENTITY MAY AME ND ITS 30
6342		-	INITIAL APPLICATION SUBMIT TED UNDER PARAGRAPH (1) OF THIS SUBSECTION I F 31 SENATE BILL 427 133
6343		-
6344		-
6345		-	AN INDEPENDENT AUDIT OR SELECTED AND PAID FOR BY THE QUALIFIED FILM 1
6346		-	PRODUCTION ENTITY HA S VERIFIED THAT THE PROJECTED TOTAL BUDG ET IN ITS 2
6347		-	INITIAL APPLICATION HAS INCREASED OR DEC REASED BY AT LEAST 50%. 3
6348		-
6349		-	(II) THE SECRETARY SHALL : 4
6350		-
6351		-	1. EVALUATE AN AMENDED APPLICATION SUBMITTE D 5
6352		-	UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH ; 6
6353		-
6354		-	2. DETERMINE IF THE FIL M PRODUCTION ENTITY 7
6355		-	CONTINUES TO QUALIFY FOR THE CREDIT UNDER THIS SECTION; AND 8
6356		-
6357		-	3. IF THE SECRETARY APPROVES TH E AMENDED 9
6358		-	APPLICATION, NOTIFY THE COMPTROLLER OF THE AM ENDED ESTIMATED AMOU NT 10
6359		-	OF TOTAL DIRECT COST S AND THE TAXABLE YE AR THE CREDIT WILL B E CLAIMED. 11
6360		-
6361		-	(i) The Department and the Comptroller jointly shall adopt regulations to carry 12
6362		-	out the provisions of this section and to specify criteria and procedures for the application 13
6363		-	for, approval of, TRANSFER OF, and monitoring of continuing eligibility for the tax credit 14
6364		-	under this section. 15
6365		-
6366		-	10–730. 16
6367		-
6368		-	(a) (1) In this section the following words have the meanings indicated. 17
6369		-
6370		-	(4) (i) “Film production activity” means: 18
6371		-
6372		-	1. the production of a film or video project that is intended 19
6373		-	for nationwide commercial distribution; and 20
6374		-
6375		-	2. for a television series, each season of the television series. 21
6376		-
6377		-	(ii) “Film production activity” includes the production of: 22
6378		-
6379		-	1. a feature film; 23
6380		-
6381		-	2. a television project; 24
6382		-
6383		-	3. a commercial; 25
6384		-
6385		-	4. a corporate film; 26
6386		-
6387		-	5. a music video; 27
6388		-
6389		-	6. a digital animation project; 28
6390		-	134 SENATE BILL 427
6391		-
6392		-
6393		-	7. a documentary; or 1
6394		-
6395		-	8. a talk, reality, or game show. 2
6396		-
6397		-	(iii) “Film production activity” does not include the production of: 3
6398		-
6399		-	1. a student film; 4
6400		-
6401		-	2. a noncommercial personal video; 5
6402		-
6403		-	3. a sports broadcast; 6
6404		-
6405		-	4. a broadcast of a live event; 7
6406		-
6407		-	5. a video, computer, or social networking game; 8
6408		-
6409		-	6. pornography; 9
6410		-
6411		-	7. an infomercial; 10
6412		-
6413		-	8. a digital product or an animation project other than a 11
6414		-	digital animation project; or 12
6415		-
6416		-	9. a multimedia project. 13
6417		-
6418		-	(7) “Qualified film production entity” means an entity that: 14
6419		-
6420		-	(i) is carrying out a film production activity; and 15
6421		-
6422		-	(ii) the Secretary determines to be eligible for the tax credit under 16
6423		-	this section in accordance with subsection (c) of this section. 17
6424		-
6425		-	(b) (1) A qualified film production entity may claim a credit against the State 18
6426		-	income tax for film production activities in the State in an amount equal to the amount 19
6427		-	stated in the final tax credit certificate approved by the Secretary for film production 20
6428		-	activities. 21
6429		-
6430		-	(2) If the tax credit allowed under this section in any taxable year exceeds 22
6431		-	the total tax otherwise payable by the qualified film production entity for that taxable year, 23
6432		-	the qualified film production entity may claim a refund in the amount of the excess. 24
6433		-
6434		-	(f) (1) Except as provided in paragraph (2) of this subsection, the Secretary 25
6435		-	may not issue tax credit certificates for credit amounts in the aggregate totaling more than: 26
6436		-
6437		-	(i) for fiscal year 2014, $25,000,000; 27
6438		-
6439		-	(ii) for fiscal year 2015, $7,500,000; 28 SENATE BILL 427 135
6440		-
6441		-
6442		-
6443		-	(iii) for fiscal year 2016, $7,500,000; 1
6444		-
6445		-	(iv) for fiscal year 2019, $8,000,000; 2
6446		-
6447		-	(v) for fiscal year 2020, $11,000,000; 3
6448		-
6449		-	(vi) for fiscal year 2021 through 2023, $12,000,000; 4
6450		-
6451		-	(vii) for fiscal year 2024, $15,000,000; 5
6452		-
6453		-	(viii) for fiscal year 2025, $17,500,000; AND 6
6454		-
6455		-	(ix) for fiscal year 2026 AND EACH FISCAL YEAR THEREAFTER , 7
6456		-	$20,000,000[; and 8
6457		-
6458		-	(x) for fiscal year 2027 and each fiscal year thereafter, $12,000,000]. 9
6459		-
6460		-	(2) If the aggregate credit amounts under the tax credit certificates issued 10
6461		-	by the Secretary total less than the maximum provided under paragraph (1) of this 11
6462		-	subsection in any fiscal year, any excess amount may be carried forward and issued under 12
6463		-	tax credit certificates in a subsequent fiscal year. 13
6464		-
6465		-	(3) [The Secretary may not issue tax credit certificates for credit amounts 14
6466		-	totaling more than $10,000,000 in the aggregate for a single film production activity. 15
6467		-
6468		-	(4)] (i) For fiscal year 2019 and each fiscal year thereafter, the Secretary 16
6469		-	shall make 10% of the credit amount authorized under paragraph (1) of this subsection 17
6470		-	available for Maryland small or independent film entities. 18
6471		-
6472		-	(ii) If the total amount of credits applied for by Maryland small or 19
6473		-	independent film entities is less than the amount made available under subparagraph (i) 20
6474		-	of this paragraph, the Secretary shall make available the unused amount of credits for use 21
6475		-	by qualified film production entities. 22
6476		-
6477		-	[10–732. 23
6478		-
6479		-	(a) (1) In this section the following words have the meanings indicated. 24
6480		-
6481		-	(2) “Costs” means the costs to an individual or corporation for: 25
6482		-
6483		-	(i) security clearance administrative expenses incurred with regard 26
6484		-	to an employee in the State including, but not limited to: 27
6485		-
6486		-	1. processing application requests for clearances for 28
6487		-	employees in the State; 29 136 SENATE BILL 427
6488		-
6489		-
6490		-
6491		-	2. maintaining, upgrading, or installing computer systems in 1
6492		-	the State required to obtain federal security clearances; and 2
6493		-
6494		-	3. training employees in the State to administer the 3
6495		-	application process; and 4
6496		-
6497		-	(ii) construction and equipment costs incurred to construct or 5
6498		-	renovate a sensitive compartmented information facility (“SCIF”) located in the State as 6
6499		-	required by the federal government. 7
6500		-
6501		-	(3) “Department” means the Department of Commerce. 8
6502		-
6503		-	(4) “Secretary” means the Secretary of Commerce. 9
6504		-
6505		-	(5) “Small business” has the meaning stated in § 7–218 of this article. 10
6506		-
6507		-	(b) (1) Subject to the limitations of this section, for a taxable year beginning 11
6508		-	after December 31, 2022, but before January 1, 2028, an individual or a corporation that 12
6509		-	employs not more than 500 employees may claim credits against the State income tax for: 13
6510		-
6511		-	(i) security clearance administrative expenses, not to exceed 14
6512		-	$200,000; 15
6513		-
6514		-	(ii) expenses incurred for rental payments owed during the first year 16
6515		-	of a rental agreement for spaces leased in the State if the individual or corporation is a 17
6516		-	small business that performs security–based contracting, not to exceed $200,000; and 18
6517		-
6518		-	(iii) subject to paragraph (2) of this subsection, construction and 19
6519		-	equipment costs incurred to construct or renovate a single SCIF in an amount equal to the 20
6520		-	lesser of 50% of the costs or $200,000. 21
6521		-
6522		-	(2) The total amount of construction and equipment costs incurred to 22
6523		-	construct or renovate multiple SCIFs for which an individual or a corporation is eligible to 23
6524		-	claim as a credit against the State income tax is $500,000. 24
6525		-
6526		-	(c) (1) By September 15 of the calendar year following the end of the taxable 25
6527		-	year in which the costs were incurred, an individual or a corporation shall submit an 26
6528		-	application to the Department for the credits allowed under subsection (b) of this section. 27
6529		-
6530		-	(2) (i) The total amount of credits approved by the Department under 28
6531		-	subsection (b) of this section may not exceed $2,000,000 for any calendar year. 29
6532		-
6533		-	(ii) If the total amount of credits applied for by all individuals and 30
6534		-	corporations under subsection (b) of this section exceeds the maximum specified under 31
6535		-	subparagraph (i) of this paragraph, the Department shall approve a credit under subsection 32 SENATE BILL 427 137
6536		-
6537		-
6538		-	(b) of this section for each applicant in an amount equal to the product of multiplying the 1
6539		-	credit applied for by the applicant times a fraction: 2
6540		-
6541		-	1. the numerator of which is the maximum specified under 3
6542		-	subparagraph (i) of this paragraph; and 4
6543		-
6544		-	2. the denominator of which is the total of all credits applied 5
6545		-	for by all applicants under subsection (b) of this section in the calendar year. 6
6546		-
6547		-	(3) By December 15 of the calendar year following the end of the taxable 7
6548		-	year in which the costs were incurred, the Department shall certify to the individual or 8
6549		-	corporation the amount of tax credits approved by the Department for the individual or 9
6550		-	corporation under this section. 10
6551		-
6552		-	(4) To claim the approved credits allowed under this section, an individual 11
6553		-	or a corporation shall: 12
6554		-
6555		-	(i) 1. file an amended income tax return for the taxable year in 13
6556		-	which the costs were incurred; and 14
6557		-
6558		-	2. attach a copy of the Department’s certification of the 15
6559		-	approved credit amount to the amended income tax return; or 16
6560		-
6561		-	(ii) subject to subsection (d) of this section, attach a copy of the 17
6562		-	Department’s certification of the approved credit amount to an income tax return filed for 18
6563		-	any taxable year after the taxable year in which the costs were incurred. 19
6564		-
6565		-	(d) If the credit allowed for any taxable year under this section exceeds the total 20
6566		-	tax otherwise due, an individual or corporation may apply the excess as a credit against 21
6567		-	the State income tax for succeeding taxable years until the full amount of the excess is 22
6568		-	used. 23
6569		-
6570		-	(e) The Department, in consultation with the Comptroller, shall adopt 24
6571		-	regulations to carry out the provisions of this section. 25
6572		-
6573		-	(f) In accordance with § 2.5–109 of the Economic Development Article, the 26
6574		-	Department shall submit a report on the number of credits certified in the previous 27
6575		-	calendar year.] 28
6576		-
6577		-	10–733. 29
6578		-
6579		-	(a) (1) In this section the following words have the meanings indicated. 30
6580		-
6581		-	(2) (i) “Company” means any entity of any form duly organized and 31
6582		-	existing under the laws of any jurisdiction for the purpose of conducting business for profit. 32
6583		-	138 SENATE BILL 427
6584		-
6585		-
6586		-	(ii) “Company” includes an entity that becomes duly organized and 1
6587		-	existing under the laws of any jurisdiction for the purpose of conducting business for profit 2
6588		-	within 4 months of receiving a qualified investment. 3
6589		-
6590		-	(iii) “Company” does not include a sole proprietorship. 4
6591		-
6592		-	(3) “Department” means the Department of Commerce. 5
6593		-
6594		-	(4) (i) “Investment” means the contribution of money in cash or cash 6
6595		-	equivalents expressed in United States dollars, at a risk of loss, to a qualified Maryland 7
6596		-	technology company in exchange for stock, a partnership or membership interest, or any 8
6597		-	other ownership interest in the equity of the qualified Maryland technology company, title 9
6598		-	to which ownership interest shall vest in the qualified investor. 10
6599		-
6600		-	(ii) “Investment” does not include debt unless it is convertible debt. 11
6601		-
6602		-	(iii) For purposes of this section, an investment is at risk of loss when 12
6603		-	repayment entirely depends on the success of the business operations of the qualified 13
6604		-	company. 14
6605		-
6606		-	(5) (i) “Qualified investor” means any individual or entity that invests 15
6607		-	at least $25,000 in a qualified Maryland technology company and that is required to file an 16
6608		-	income tax return in any jurisdiction. 17
6609		-
6610		-	(ii) “Qualified investor” does not include: 18
6611		-
6612		-	1. a qualified pension plan, an individual retirement 19
6613		-	account, or any other qualified retirement plan under the Employee Retirement Income 20
6614		-	Security Act of 1974, as amended, or fiduciaries or custodians under such plans, or similar 21
6615		-	tax–favored plans or entities under the laws of other countries; or 22
6616		-
6617		-	2. a founder or current employee of the qualified Maryland 23
6618		-	technology company, if the company has been in active business for more than 5 years. 24
6619		-
6620		-	(6) (i) “Qualified Maryland technology company” means a technology 25
6621		-	company that has met the criteria set forth in subsection (b)(3) of this section. 26
6622		-
6623		-	(ii) “Qualified Maryland technology company” does not include a 27
6624		-	technology company that is or has been certified as a qualified Maryland biotechnology 28
6625		-	company under § 10–725 of this subtitle. 29
6626		-
6627		-	(7) “Secretary” means the Secretary of Commerce. 30
6628		-
6629		-	(8) “Technology company” means a company organized for profit that is 31
6630		-	engaged in the research, development, or commercialization of innovative and proprietary 32
6631		-	technology. 33
6632		-	SENATE BILL 427 139
6633		-
6634		-
6635		-	(b) (2) Subject to paragraph (3) of this subsection and subsections (d) and (e) 1
6636		-	of this section, for the taxable year in which an investment in a qualified Maryland 2
6637		-	technology company is made, a qualified investor may claim a credit against the State 3
6638		-	income tax in an amount equal to the amount of tax credit stated in the final credit 4
6639		-	certificate approved by the Secretary for the investment as provided under this section. 5
6640		-
6641		-	(3) To be eligible for the tax credit described in paragraph (2) of this 6
6642		-	subsection, the qualified investor: 7
6643		-
6644		-	(ii) at least 30 days prior to making an investment in a qualified 8
6645		-	Maryland technology company for which the qualified investor would be eligible for an 9
6646		-	initial tax credit certificate under this subsection, shall submit an application to the 10
6647		-	Department containing the following: 11
6648		-
6649		-	2. evidence that the qualified Maryland technology company 12
6650		-	has satisfied the following minimum requirements for consideration as a qualified 13
6651		-	Maryland technology company: 14
6652		-
6653		-	J. meets any other reasonable requirements of the 15
6654		-	Department evidencing that the company is a going concern engaged in the research, 16
6655		-	development, or commercialization of innovative and proprietary technology in an eligible 17
6656		-	technology sector identified in accordance with paragraph (4) of this subsection; and 18
6657		-
6658		-	(4) (i) [After consulting with the Department and the Maryland 19
6659		-	Department of Labor, each year the Maryland Economic Development Commission shall: 20
6660		-
6661		-	1. evaluate the potential employment and economic growth 21
6662		-	of Maryland’s technology sectors; and 22
6663		-
6664		-	2. recommend eligible technology sectors to the Department. 23
6665		-
6666		-	(ii)] Each year the Department shall[: 24
6667		-
6668		-	1. consider the recommendation of the Maryland Economic 25
6669		-	Development Commission; and 26
6670		-
6671		-	2.] establish a list of technology sectors that will be eligible 27
6672		-	for the tax credit under this section. 28
6673		-
6674		-	[(iii)] (II) In determining whether a company is engaged in an 29
6675		-	eligible technology sector, the Department shall consider the definitions set forth in the 30
6676		-	North American Industry Classification System (NAICS). 31
6677		-
6678		-	(5) IF FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025, 32
6679		-	IF THE QUALIFIED INVEST OR ALLOWED TO CLAIM A CREDIT UNDER PARAG RAPH (2) 33
6680		-	OF THIS SUBSECTION I S A PASS–THROUGH ENTITY THAT PAYS THE INCOME TAX 34 140 SENATE BILL 427
6681		-
6682		-
6683		-	IMPOSED UNDER § 10–102.1 OF THIS TITLE ON B EHALF OF ALL MEMBERS OF THE 1
6684		-	PASS–THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY C LAIM AND ALLOCATE 2
6685		-	THE CREDIT AMONG MEM BERS OF THE PASS –THROUGH ENTITY IN AN Y MANNER. 3
6686		-
6687		-	(d) (1) The tax credit allowed in an initial tax credit certificate issued under 4
6688		-	this section is: 5
6689		-
6690		-	(i) except as provided in item (ii) of this paragraph, 33% of the 6
6691		-	investment in a qualified Maryland technology company, not to exceed $250,000; or 7
6692		-
6693		-	(ii) [50%] 75% of the investment in the qualified Maryland 8
6694		-	technology company, not to exceed [$500,000] $750,000, if a qualified Maryland 9
6695		-	technology company[: 10
6696		-
6697		-	1. is located in Allegany County, Dorchester County, Garrett 11
6698		-	County, or Somerset County; or 12
6699		-
6700		-	2.] is located in a Regional Institution Strategic Enterprise 13
6701		-	zone that is designated under [Title 5, Subtitle 14] TITLE 10, SUBTITLE 1 of the Economic 14
6702		-	Development Article[, is based on technology that was developed at a qualified institution 15
6703		-	within that zone, and has been in active business not longer than 7 years]. 16
6704		-
6705		-	(2) During any fiscal year, the Secretary may not certify eligibility for tax 17
6706		-	credits for investments in: 18
6707		-
6708		-	(i) a single qualified Maryland technology company that in the 19
6709		-	aggregate exceed 15% of the total appropriations to the Maryland Innovation Investment 20
6710		-	Tax Credit Reserve Fund for that fiscal year; or 21
6711		-
6712		-	(ii) a single technology sector that in the aggregate exceed 25% of the 22
6713		-	total appropriations to the Maryland Innovation Investment Tax Credit Reserve Fund for 23
6714		-	that fiscal year. 24
6715		-
6716		-	(3) (I) If the credit allowed under this section in any taxable year 25
6717		-	exceeds the State income tax for that taxable year, an individual or a corporation may claim 26
6718		-	a refund in the amount of the excess. 27
6719		-
6720		-	(II) IF FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 28
6721		-	2025, IF THE QUALIFIED INVEST OR ALLOWED TO CLAIM A REFUND UNDER 29
6722		-	SUBPARAGRAPH (I) OF THIS PARAGRAPH IS A PASS–THROUGH ENTITY THAT PAYS 30
6723		-	THE INCOME TAX IMPOS ED UNDER § 10–102.1 OF THIS TITLE ON BEH ALF OF ALL 31
6724		-	MEMBERS OF THE PASS –THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY C LAIM 32
6725		-	AND ALLOCATE THE CRE DIT AMONG MEMBERS OF THE PASS–THROUGH ENTITY IN 33
6726		-	ANY MANNER . 34
6727		-	SENATE BILL 427 141
6728		-
6729		-
6730		-	(J) THE DEPARTMENT MAY NOT AP PROVE A CREDIT UNDER THIS SECTION 1
6731		-	FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2029. 2
6732		-
6733		-	(K) FOR A TAXABLE YEAR BE GINNING AFTER DECEMBER 31, 2025, THE 3
6734		-	COMPTROLLER SHALL PRO VIDE THE MEANS FOR A QUALIFIED INVESTOR T O FILE 4
6735		-	THE INVESTOR’S RETURN ELECTRONICA LLY. 5
6736		-
6737		-	10–733.1. 6
6738		-
6739		-	(a) (1) In this section the following words have the meanings indicated. 7
6740		-
6741		-	(2) “Cybersecurity business” means an entity organized for profit that is 8
6742		-	engaged primarily in the development of innovative and proprietary cybersecurity 9
6743		-	technology or the provision of cybersecurity service. 10
6744		-
6745		-	(3) “Cybersecurity service” means an activity that is associated with a 11
6746		-	category or subcategory identified under the Framework Core established by the National 12
6747		-	Institute of Standards and Technology’s Cybersecurity Framework. 13
6748		-
6749		-	(4) “Cybersecurity technology” means products or goods intended to detect 14
6750		-	or prevent activity intended to result in unauthorized access to, exfiltration of, 15
6751		-	manipulation of, or impairment to the integrity, confidentiality, or availability of an 16
6752		-	information system or information stored on or transiting an information system. 17
6753		-
6754		-	(5) “Department” means the Department of Commerce. 18
6755		-
6756		-	(6) [“Panel” means the panel that the Department may establish under 19
6757		-	subsection (c) of this section composed of experts in the areas of cybersecurity technology 20
6758		-	and cybersecurity service. 21
6759		-
6760		-	(7)] “Qualified buyer” means any entity [that has fewer than 50 employees 22
6761		-	in the State and] that is required to file an income tax return in the State. 23
6762		-
6763		-	[(8)] (7) “Qualified seller” means a cybersecurity business that: 24
6764		-
6765		-	(i) has its headquarters and base of operations in the State; 25
6766		-
6767		-	(ii) 1. has less than [$5,000,000] $10,000,000 in annual 26
6768		-	revenue; 27
6769		-
6770		-	2. is a minority–owned, woman–owned, veteran–owned, or 28
6771		-	service–disabled–veteran–owned business; or 29
6772		-
6773		-	3. is located in a historically underutilized business zone 30
6774		-	designated by the United States Small Business Administration; 31
6775		-	142 SENATE BILL 427
6776		-
6777		-
6778		-	(iii) 1. owns or has properly licensed any proprietary 1
6779		-	cybersecurity technology; or 2
6780		-
6781		-	2. provides a cybersecurity service; 3
6782		-
6783		-	(iv) is in good standing; 4
6784		-
6785		-	(v) is current in the payment of all tax obligations to the State or any 5
6786		-	unit or subdivision of the State; and 6
6787		-
6788		-	(vi) is not in default under the terms of any contract with, 7
6789		-	indebtedness to, or grant from the State or any unit or subdivision of the State. 8
6790		-
6791		-	(b) (1) THERE IS A BUY MARYLAND CYBERSECURITY TAX CREDIT 9
6792		-	AUTHORIZED UNDER THI S SECTION. 10
6793		-
6794		-	(2) THE BUY MARYLAND CYBERSECURITY TAX CREDIT IS INTENDED 11
6795		-	TO PROMOTE THE CYBER SECURITY INDUSTRY IN MARYLAND BY HELPING 12
6796		-	MARYLAND BUSINESSES A ND NONPROFITS PURCHA SE CYBERSECURITY 13
6797		-	TECHNOLOGIES AND SER VICES FROM MARYLAND CYBERSECURIT Y COMPANIES TO 14
6798		-	PROTECT BUSINESS AND CUSTOMER INFORMATION . 15
6799		-
6800		-	[(1)] (3) Subject to paragraphs [(2) and (3)] (4) THROUGH (6) of this 16
6801		-	subsection, a qualified buyer may claim a credit against the State income tax in an amount 17
6802		-	equal to 50% of the cost incurred during the taxable year to purchase cybersecurity 18
6803		-	technology or a cybersecurity service from one or more qualified sellers. 19
6804		-
6805		-	[(2)] (4) For any taxable year, the credit allowed under this section may 20
6806		-	not exceed $50,000 for each qualified buyer. 21
6807		-
6808		-	(5) IF THE CREDIT ALLOWED UNDER THIS SECTION I N ANY TAXABLE 22
6809		-	YEAR EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR , A QUALIFIED 23
6810		-	BUYER MAY CLAIM A RE FUND IN THE AMOUNT O F THE EXCESS. 24
6811		-
6812		-	[(3)] (6) For any taxable year, the aggregate credits claimed for 25
6813		-	cybersecurity technology or cybersecurity service purchased from a single qualified seller 26
6814		-	may not exceed [$200,000] $1,000,000. 27
6815		-
6816		-	(c) [(1) The Department, in consultation with the Maryland Technology 28
6817		-	Development Corporation, may establish a panel composed of experts in the areas of 29
6818		-	cybersecurity technology and cybersecurity service. 30
6819		-
6820		-	(2) The Department may establish the panel under service contracts with 31
6821		-	independent reviewers. 32
6822		-	SENATE BILL 427 143
6823		-
6824		-
6825		-	(3) The panel shall assist the Department in its determination as to 1
6826		-	whether a company is a qualified seller. 2
6827		-
6828		-	(4) A member of the panel is not eligible to receive any benefit, direct or 3
6829		-	indirect, from the tax credit under this section. 4
6830		-
6831		-	(5) (i) Except as provided in subparagraph (ii) of this paragraph, 5
6832		-	Division II of the State Finance and Procurement Article does not apply to a service that 6
6833		-	the Department obtains under this section. 7
6834		-
6835		-	(ii) The Department is subject to Title 12, Subtitle 4 of the State 8
6836		-	Finance and Procurement Article for services the Department obtains under this section. 9
6837		-
6838		-	(d)] (1) (i) A qualified buyer eligible for the credit under this section may 10
6839		-	apply to the Department for a credit certificate that states the amount of the credit the 11
6840		-	qualified buyer may claim under subsection (b) of this section. 12
6841		-
6842		-	(ii) A qualified buyer shall attach the credit certificate to the income 13
6843		-	tax return on which the qualified buyer claims the credit under subsection (b) of this 14
6844		-	section. 15
6845		-
6846		-	(2) Subject to paragraph (3) of this subsection, the Secretary of Commerce 16
6847		-	shall approve each application under paragraph (1) of this subsection that qualifies for a 17
6848		-	credit certificate. 18
6849		-
6850		-	(3) [(i)] The total amount of the credit certificates approved by the 19
6851		-	Secretary of Commerce under this subsection may not exceed: 20
6852		-
6853		-	1. for taxable year 2018, $2,000,000; and 21
6854		-
6855		-	2. for taxable year 2019 and each taxable year thereafter, 22
6856		-	$4,000,000. 23
6857		-
6858		-	[(ii) For each taxable year, the Secretary of Commerce shall award 24
6859		-	25% of the amount of tax credits authorized under subparagraph (i) of this paragraph to 25
6860		-	qualified buyers that purchase cybersecurity services.] 26
6861		-
6862		-	[(e)] (D) (1) The Department may revoke its certification of a credit under 27
6863		-	this section if any representation made in connection with the application for the 28
6864		-	certification is determined by the Department to have been false. 29
6865		-
6866		-	(2) The revocation may be in full or in part as the Department may 30
6867		-	determine and, subject to paragraph (3) of this subsection, shall be communicated to the 31
6868		-	qualified buyer and the Comptroller. 32
6869		-
6870		-	(3) The qualified buyer shall have an opportunity to appeal any revocation 33
6871		-	to the Department before notification of the Comptroller. 34 144 SENATE BILL 427
6872		-
6873		-
6874		-
6875		-	(4) The Comptroller may make an assessment against the qualified buyer 1
6876		-	to recapture any amount of tax credit that the qualified buyer has already claimed. 2
6877		-
6878		-	[(f)] (E) In accordance with § 2.5–109 of the Economic Development Article, the 3
6879		-	Department shall submit a report on the credit certificates awarded under this section for 4
6880		-	the calendar year. 5
6881		-
6882		-	[(g)] (F) The Department and the Comptroller jointly shall adopt regulations to 6
6883		-	carry out this section and to specify criteria and procedures for application for, approval of, 7
6884		-	and monitoring continuing eligibility for the tax credit under this section. 8
6885		-
6886		-	(G) THE DEPARTMENT MAY NOT AP PROVE A CREDIT UNDER THIS SECTION 9
6887		-	FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2029. 10
6888		-
6889		-	SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
6890		-	as follows: 12
6891		-
6892		-	Article – Tax – Property 13
6893		-
6894		-	9–103. 14
6895		-
6896		-	(a) (1) In this section the following words have the meanings indicated. 15
6897		-
6898		-	(6) (i) “Qualified property” means real property that is: 16
6899		-
6900		-	1. not used for residential purposes; 17
6901		-
6902		-	2. used in a trade or business by a business entity that meets 18
6903		-	the requirements of § 5–707 of the Economic Development Article; and 19
6904		-
6905		-	3. located in an enterprise zone that is designated under 20
6906		-	Title 5, Subtitle 7 of the Economic Development Article. 21
6907		-
6908		-	(ii) “Qualified property” includes personal property on real property 22
6909		-	that is located in a focus area as defined in § 5–701 of the Economic Development Article. 23
6910		-
6911		-	(b) (1) The governing body of a county or of a municipal corporation shall grant 24
6912		-	a tax credit under this section against the property tax imposed on the eligible assessment 25
6913		-	of qualified property. 26
6914		-
6915		-	(d) (2) For newly constructed qualified property that provides both office and 27
6916		-	retail space and became eligible for the credit under this section on or after [January 1, 28
6917		-	2019] JULY 1, 2018, but before January 1, 2022, the appropriate governing body shall 29
6918		-	calculate the amount of the tax credit under this section equal to a percentage of the amount 30
6919		-	of property tax imposed on the eligible assessment of the qualified property as follows: 31 SENATE BILL 427 145
6920		-
6921		-
6922		-
6923		-	(i) 80% in each of the 1st 8 taxable years following the calendar year 1
6924		-	in which the property initially becomes a qualified property; 2
6925		-
6926		-	(ii) 70% in the 9th taxable year; 3
6927		-
6928		-	(iii) 60% in the 10th taxable year; 4
6929		-
6930		-	(iv) 50% in the 11th taxable year; 5
6931		-
6932		-	(v) 40% in the 12th taxable year; and 6
6933		-
6934		-	(vi) 30% in the 13th taxable year. 7
6935		-
6936		-	(5) For qualified property located in a focus area, the appropriate governing 8
6937		-	body shall calculate the amount of the tax credit under this section equal to 80% of the 9
6938		-	amount of property tax imposed on the eligible assessment of the qualified property: 10
6939		-
6940		-	(i) for newly constructed qualified property that provides both office 11
6941		-	and retail space and became eligible for the credit under this section on or after [January 12
6942		-	1, 2019] JULY 1, 2018, but before January 1, 2022, for each of the 13 taxable years 13
6943		-	following the calendar year in which the property initially becomes a qualified property; or 14
6944		-
6945		-	(ii) for any other qualified property, for each of the 10 taxable years 15
6946		-	following the calendar year in which the property initially becomes a qualified property. 16
6947		-
6948		-	(e) (1) A tax credit under this section is available to a qualified property for no 17
6949		-	more than 10 consecutive years or, in the case of newly constructed qualified property that 18
6950		-	provides both office and retail space and became eligible for the credit under this section 19
6951		-	on or after [January 1, 2019] JULY 1, 2018, but before January 1, 2022, no more than 13 20
6952		-	consecutive years, beginning with: 21
6953		-
6954		-	(i) the taxable year following the calendar year in which the real 22
6955		-	property initially becomes a qualified property; or 23
6956		-
6957		-	(ii) the taxable year in which the real property initially becomes a 24
6958		-	qualified property, subject to the approval of the appropriate local governing body and the 25
6959		-	Secretary of Commerce. 26
6960		-
6961		-	9–103.1. 27
6962		-
6963		-	(a) (1) In this section the following words have the meanings indicated. 28
6964		-
6965		-	(6) “Qualified property” means real property that is: 29
6966		-
6967		-	(i) located in a RISE zone; 30
6968		-	146 SENATE BILL 427
6969		-
6970		-
6971		-	(ii) not used for residential purposes; and 1
6972		-
6973		-	(iii) used in a trade or business by a business entity that locates in 2
6974		-	the RISE zone before January 1, 2023. 3
6975		-
6976		-	(7) “RISE zone” has the meaning stated in [§ 5–1401] § 10–137 of the 4
6977		-	Economic Development Article. 5
6978		-
6979		-	(b) The governing body of a county or of a municipal corporation shall grant a tax 6
6980		-	credit under this section against the property tax imposed on the eligible assessment of 7
6981		-	qualified property. 8
6982		-
6983		-	(c) (3) [For] EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS 9
6984		-	SUBSECTION, FOR purposes of calculating the amount of the credit allowed under this 10
6985		-	section, the amount of property tax imposed on the eligible assessment shall be calculated 11
6986		-	without reduction for any credits allowed under this title. 12
6987		-
6988		-	(4) (i) For qualified property located in an enterprise zone designated 13
6989		-	under Title 5, Subtitle 7 of the Economic Development Article, the appropriate governing 14
6990		-	body shall calculate the amount of the tax credit under this section equal to 80% of the 15
6991		-	amount of property tax imposed on the eligible assessment of the qualified property, AFTER 16
6992		-	FIRST APPLYING ANY C REDITS REQUIRED UNDE R § 9–103 OF THIS SUBTITLE, for each 17
6993		-	of the 5 taxable years following the calendar year in which the property initially becomes a 18
6994		-	qualified property. 19
6995		-
6996		-	(ii) For qualified property located in a focus area designated under § 20
6997		-	5–706 of the Economic Development Article, the appropriate governing body shall calculate 21
6998		-	the amount of the tax credit under this section equal to 100% of the amount of property tax 22
6999		-	imposed on the eligible assessment of the qualified property, AFTER FIRST APPLYING ANY 23
7000		-	CREDITS REQUIRED UND ER § 9–103 OF THIS SUBTITLE, for each of the 5 taxable years 24
7001		-	following the calendar year in which the property initially becomes a qualified property. 25
7002		-
7003		-	(iii) 1. If a business entity is certified as consistent with the 26
7004		-	target strategy of the RISE zone and the qualified property is located in an enterprise zone 27
7005		-	or focus area, the amount of the required reimbursement under § 9–103(h) of this subtitle 28
7006		-	may only be for the amount required for the required property tax credits under § 9–103 of 29
7007		-	this subtitle. 30
7008		-
7009		-	2. The property tax credits required under subparagraphs (i) 31
7010		-	and (ii) of this paragraph do not alter the amount of funds required to be reimbursed under 32
7011		-	§ 9–103(h) of this subtitle. 33
7012		-
7013		-	3. IF A BUSINESS ENTITY IS CERTIFIED AS CONS ISTENT 34
7014		-	WITH THE TARGET STRA TEGY OF THE RISE ZONE AND THE QUALIFI ED PROPERTY 35
7015		-	IS LOCATED IN AN ENT ERPRISE ZONE OR FOCU S AREA, THE BUSINESS ENTITY MAY 36
7016		-	CONCURRENTLY CLAIM T HE PROPERTY TAX CRED ITS UNDER THIS SECTI ON AND § 37 SENATE BILL 427 147
7017		-
7018		-
7019		-	9–103 OF THIS SUBTITLE , PROVIDED THAT THE TO TAL PROPERTY TAX CRE DITS IN 1
7020		-	ANY TAXABLE YEAR MAY NOT EXCEED 100% OF THE PROPERTY TAX THAT WOULD 2
7021		-	OTHERWISE BE DUE TO THE STATE AND LOCAL JURIS DICTION. 3
7022		-
7023		-	4. THE CONCURRENT APPLIC ATION OF PROPERTY TA X 4
7024		-	CREDITS UNDER THIS S ECTION MAY NOT ALTER THE TIME LIMITATION ON THE 5
7025		-	AVAILABILITY OF ANY PROPERTY TA X CREDIT. 6
7026		-
7027		-	(5) The governing body of a county or municipal corporation may increase, 7
7028		-	by local law, the percentage under paragraph (1) of this subsection. 8
7029		-
7030		-	(6) (i) If a RISE zone is renewed as provided under [§ 5–1404] § 9
7031		-	10–140 of the Economic Development Article, the governing body of a county or municipal 10
7032		-	corporation shall calculate the amount of the tax credit under this section equal to at least 11
7033		-	10% of the amount of property tax imposed on the eligible assessment of the qualified 12
7034		-	property, AFTER FIRST APPLYING ANY CREDITS REQUIRED UNDER § 9–103 OF THIS 13
7035		-	SUBTITLE, for the sixth through tenth taxable years. 14
7036		-
7037		-	(ii) The governing body of a county or municipal corporation may 15
7038		-	increase, by local law, the percentage under subparagraph (i) of this paragraph. 16
7039		-
7040		-	(d) (1) Except as provided in subsection (c)(6) of this section, a tax credit under 17
7041		-	this section is available to a qualified property for no more than 5 consecutive years 18
7042		-	beginning with: 19
7043		-
7044		-	(I) the taxable year following the calendar year in which the real 20
7045		-	property initially becomes a qualified property; OR 21
7046		-
7047		-	(II) THE TAXABLE YEAR IN WHICH THE REAL PROPE RTY 22
7048		-	INITIALLY BECOMES A QUALIFIED PROPERTY , SUBJECT TO THE APPRO VAL OF THE 23
7049		-	APPROPRIATE LOCAL GO VERNING BODY AND THE DEPARTMENT OF COMMERCE . 24
7050		-
7051		-	(2) If the designation of a RISE zone expires, the tax credit under this 25
7052		-	section continues to be available to a qualified property. 26
7053		-
7054		-	(3) State property tax imposed on real property is not affected by this 27
7055		-	section. 28
7056		-
7057		-	(e) When a Regional Institution Strategic Enterprise zone is designated by the 29
7058		-	Secretary of Commerce, the Secretary shall certify to the State Department of Assessments 30
7059		-	and Taxation: 31
7060		-
7061		-	(1) the real properties in the zone that are qualified properties for each 32
7062		-	taxable year for which the property tax credit under this section is to be granted; and 33
7063		-
7064		-	(2) the date that the real properties became qualified properties. 34 148 SENATE BILL 427
7065		-
7066		-
7067		-
7068		-	(f) Before property tax bills are sent, the State Department of Assessments and 1
7069		-	Taxation shall submit to the Secretary of Commerce a list containing: 2
7070		-
7071		-	(1) the location of each qualified property; 3
7072		-
7073		-	(2) the amount of the base year value for each qualified property; and 4
7074		-
7075		-	(3) the amount of the eligible assessment for each qualified property. 5
7076		-
7077		-	SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 6
7078		-	as follows: 7
7079		-
7080		-	Chapter 515 of the Acts of 2000, as amended by Chapter 98 of the Acts of 2005, 8
7081		-	Chapter 20 of the Acts of 2010, Chapter 85 of the Acts of 2019, and Chapter 114 of 9
7082		-	the Acts of 2021 10
7083		-
7084		-	SECTION 2. AND BE IT FURTHER ENACTED, That: 11
7085		-
7086		-	(a) Except as otherwise provided in this section, this Act shall be applicable to all 12
7087		-	taxable years beginning after December 31, 1999 [but before January 1, 2026]. 13
7088		-
7089		-	(b) If a taxpayer’s taxable year for income tax purposes is not the calendar year[: 14
7090		-
7091		-	(1)], for the taxable year that ends in calendar year 2000, the taxpayer may 15
7092		-	apply for a prorated credit for research and development expenses paid or incurred in the 16
7093		-	taxable year for that part of the taxable year that falls in calendar year 2000[; and 17
7094		-
7095		-	(2) for the taxable year that begins in calendar year 2025, the taxpayer 18
7096		-	may apply for only a prorated credit for research and development expenses paid or 19
7097		-	incurred in the taxable year for that part of the taxable year that falls in calendar year 20
7098		-	2025]. 21
7099		-
7100		-	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
7101		-	1, 2000. [It shall remain effective for a period of 27 years and, at the end of June 30, 2027, 23
7102		-	with no further action required by the General Assembly, this Act shall be abrogated and 24
7103		-	of no further force and effect.] 25
7104		-
7105		-	Chapter 516 of the Acts of 2000, as amended by Chapter 98 of the Acts of 2005, 26
7106		-	Chapter 20 of the Acts of 2010, Chapter 85 of the Acts of 2019, and Chapter 114 of 27
7107		-	the Acts of 2021 28
7108		-
7109		-	SECTION 2. AND BE IT FURTHER ENACTED, That: 29
7110		-
7111		-	(a) Except as otherwise provided in this section, this Act shall be applicable to all 30
7112		-	taxable years beginning after December 31, 1999 [but before January 1, 2026]. 31 SENATE BILL 427 149
7113		-
7114		-
7115		-
7116		-	(b) If a taxpayer’s taxable year for income tax purposes is not the calendar year[: 1
7117		-
7118		-	(1)], for the taxable year that ends in calendar year 2000, the taxpayer may 2
7119		-	apply for a prorated credit for research and development expenses paid or incurred in the 3
7120		-	taxable year for that part of the taxable year that falls in calendar year 2000[; and 4
7121		-
7122		-	(2) for the taxable year that begins in calendar year 2025, the taxpayer 5
7123		-	may apply for only a prorated credit for research and development expenses paid or 6
7124		-	incurred in the taxable year for that part of the taxable year that falls in calendar year 7
7125		-	2025]. 8
7126		-
7127		-	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
7128		-	1, 2000. [It shall remain effective for a period of 27 years and, at the end of June 30, 2027, 10
7129		-	with no further action required by the General Assembly, this Act shall be abrogated and 11
7130		-	of no further force and effect.] 12
7131		-
7132		-	SECTION 4. 6. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 13
7133		-	as follows: 14
7134		-
7135		-	Chapter 390 of the Acts of 2013, as amended by Chapter 578 of the Acts of 2018 15
7136		-	and Chapter 113 of the Acts of 2021 16
7137		-
7138		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17
7139		-	1, 2013, and shall be applicable to all taxable years beginning after December 31, 2013[, 18
7140		-	but before January 1, 2025. This Act shall remain effective for a period of 12 years and, at 19
7141		-	the end of June 30, 2025, with no further action required by the General Assembly, this Act 20
7142		-	shall be abrogated and of no further force and effect]. 21
7143		-
7144		-	SECTION 5. AND BE IT FURTHER ENACTED, That the terms of t he members of 22
7145		-	the Maryland Life Sciences Advisory Board appointed by the Governor under § 3–203(a)(3) 23
7146		-	of the Economic Development Article, as enacted by Section 2 of this Act, shall expire as 24
7147		-	follows: 25
7148		-
7149		-	(1) five members in 2026; 26
7150		-
7151		-	(2) five members in 2027; and 27
7152		-
7153		-	(3) six members in 2028. 28
7154		-
7155		-	SECTION 6. 7. AND BE IT FURTHER ENACTED, That the publisher of the 29
7156		-	Annotated Code of Maryland, in consultation with and subject to the approval of the 30
7157		-	Department of Legislative Services, shall correct, with no further action required by the 31
7158		-	General Assembly, cross–references and terminology rendered incorrect by this Act. The 32
7159		-	publisher shall adequately describe any correction that is made in an editor’s note following 33
7160		-	the section affected. 34 150 SENATE BILL 427
7161		-
7162		-
7163		-
7164		-	SECTION 7. 8. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall 1
7165		-	be applicable to all taxable years beginning after December 31, 2024. 2
7166		-
7167		-	SECTION 8. 9. AND BE IT FURTHER ENACTED, That Section 4 of this Act shall 3
7168		-	take effect June 1, 2025. be applicable to all taxable years beginning after June 30, 2025. 4
7169		-
7170		-	SECTION 9. 10. AND BE IT FURTHER ENACTED, That , except as provided in 5
7171		-	Section 8 of this Act, Sections 1, 2, 3, and 5 of this Act shall take effect July 1, 2025. 6
7172		-
7173		-	SECTION 11. AND BE IT FURTHER ENACTED, That, except as provided in 7
7174		-	Section 10 of this Act, this Act shall take effect June 1, 2025. 8
7175		-
7176		-
7177		-
7178		-
7179		-	Approved:
7180		-	________________________________________________________________________________
7181		-	Governor.
7182		-	________________________________________________________________________________
7183		-	President of the Senate.
7184		-	________________________________________________________________________________
7185		-	Speaker of the House of Delegates.
	6161	+	(f) (1) Except as provided in paragraph (2) of this subsection, the Secretary 22
	6162	+	may not issue tax credit certificates for credit amounts in the aggregate totaling more than: 23
	6163	+
	6164	+	(i) for fiscal year 2014, $25,000,000; 24
	6165	+
	6166	+	(ii) for fiscal year 2015, $7,500,000; 25
	6167	+
	6168	+	(iii) for fiscal year 2016, $7,500,000; 26
	6169	+
	6170	+	(iv) for fiscal year 2019, $8,000,000; 27
	6171	+
	6172	+	(v) for fiscal year 2020, $11,000,000; 28 SENATE BILL 427 129
	6173	+
	6174	+
	6175	+
	6176	+	(vi) for fiscal year 2021 through 2023, $12,000,000; 1
	6177	+
	6178	+	(vii) for fiscal year 2024, $15,000,000; 2
	6179	+
	6180	+	(viii) for fiscal year 2025, $17,500,000; AND 3
	6181	+
	6182	+	(ix) for fiscal year 2026 AND EACH FISCAL YEAR THEREAFTER , 4
	6183	+	$20,000,000[; and 5
	6184	+
	6185	+	(x) for fiscal year 2027 and each fiscal year thereafter, $12,000,000]. 6
	6186	+
	6187	+	(2) If the aggregate credit amounts under the tax credit certificates issued 7
	6188	+	by the Secretary total less than the maximum provided under paragraph (1) of this 8
	6189	+	subsection in any fiscal year, any excess amount may be carried forward and issued under 9
	6190	+	tax credit certificates in a subsequent fiscal year. 10
	6191	+
	6192	+	(3) [The Secretary may not issue tax credit certificates for credit amounts 11
	6193	+	totaling more than $10,000,000 in the aggregate for a single film production activity. 12
	6194	+
	6195	+	(4)] (i) For fiscal year 2019 and each fiscal year thereafter, the Secretary 13
	6196	+	shall make 10% of the credit amount authorized under paragraph (1) of this subsection 14
	6197	+	available for Maryland small or independent film entities. 15
	6198	+
	6199	+	(ii) If the total amount of credits applied for by Maryland small or 16
	6200	+	independent film entities is less than the amount made available under subparagraph (i) 17
	6201	+	of this paragraph, the Secretary shall make available the unused amount of credits for use 18
	6202	+	by qualified film production entities. 19
	6203	+
	6204	+	[10–732. 20
	6205	+
	6206	+	(a) (1) In this section the following words have the meanings indicated. 21
	6207	+
	6208	+	(2) “Costs” means the costs to an individual or corporation for: 22
	6209	+
	6210	+	(i) security clearance administrative expenses incurred with regard 23
	6211	+	to an employee in the State including, but not limited to: 24
	6212	+
	6213	+	1. processing application requests for clearances for 25
	6214	+	employees in the State; 26
	6215	+
	6216	+	2. maintaining, upgrading, or installing computer systems in 27
	6217	+	the State required to obtain federal security clearances; and 28
	6218	+
	6219	+	3. training employees in the State to administer the 29
	6220	+	application process; and 30 130 SENATE BILL 427
	6221	+
	6222	+
	6223	+
	6224	+	(ii) construction and equipment costs incurred to construct or 1
	6225	+	renovate a sensitive compartmented information facility (“SCIF”) located in the State as 2
	6226	+	required by the federal government. 3
	6227	+
	6228	+	(3) “Department” means the Department of Commerce. 4
	6229	+
	6230	+	(4) “Secretary” means the Secretary of Commerce. 5
	6231	+
	6232	+	(5) “Small business” has the meaning stated in § 7–218 of this article. 6
	6233	+
	6234	+	(b) (1) Subject to the limitations of this section, for a taxable year beginning 7
	6235	+	after December 31, 2022, but before January 1, 2028, an individual or a corporation that 8
	6236	+	employs not more than 500 employees may claim credits against the State income tax for: 9
	6237	+
	6238	+	(i) security clearance administrative expenses, not to exceed 10
	6239	+	$200,000; 11
	6240	+
	6241	+	(ii) expenses incurred for rental payments owed during the first year 12
	6242	+	of a rental agreement for spaces leased in the State if the individual or corporation is a 13
	6243	+	small business that performs security–based contracting, not to exceed $200,000; and 14
	6244	+
	6245	+	(iii) subject to paragraph (2) of this subsection, construction and 15
	6246	+	equipment costs incurred to construct or renovate a single SCIF in an amount equal to the 16
	6247	+	lesser of 50% of the costs or $200,000. 17
	6248	+
	6249	+	(2) The total amount of construction and equipment costs incurred to 18
	6250	+	construct or renovate multiple SCIFs for which an individual or a corporation is eligible to 19
	6251	+	claim as a credit against the State income tax is $500,000. 20
	6252	+
	6253	+	(c) (1) By September 15 of the calendar year following the end of the taxable 21
	6254	+	year in which the costs were incurred, an individual or a corporation shall submit an 22
	6255	+	application to the Department for the credits allowed under subsection (b) of this section. 23
	6256	+
	6257	+	(2) (i) The total amount of credits approved by the Department under 24
	6258	+	subsection (b) of this section may not exceed $2,000,000 for any calendar year. 25
	6259	+
	6260	+	(ii) If the total amount of credits applied for by all individuals and 26
	6261	+	corporations under subsection (b) of this section exceeds the maximum specified under 27
	6262	+	subparagraph (i) of this paragraph, the Department shall approve a credit under subsection 28
	6263	+	(b) of this section for each applicant in an amount equal to the product of multiplying the 29
	6264	+	credit applied for by the applicant times a fraction: 30
	6265	+
	6266	+	1. the numerator of which is the maximum specified under 31
	6267	+	subparagraph (i) of this paragraph; and 32
	6268	+
	6269	+	2. the denominator of which is the total of all credits applied 33 SENATE BILL 427 131
	6270	+
	6271	+
	6272	+	for by all applicants under subsection (b) of this section in the calendar year. 1
	6273	+
	6274	+	(3) By December 15 of the calendar year following the end of the taxable 2
	6275	+	year in which the costs were incurred, the Department shall certify to the individual or 3
	6276	+	corporation the amount of tax credits approved by the Department for the individual or 4
	6277	+	corporation under this section. 5
	6278	+
	6279	+	(4) To claim the approved credits allowed under this section, an individual 6
	6280	+	or a corporation shall: 7
	6281	+
	6282	+	(i) 1. file an amended income tax return for the taxable year in 8
	6283	+	which the costs were incurred; and 9
	6284	+
	6285	+	2. attach a copy of the Department’s certification of the 10
	6286	+	approved credit amount to the amended income tax return; or 11
	6287	+
	6288	+	(ii) subject to subsection (d) of this section, attach a copy of the 12
	6289	+	Department’s certification of the approved credit amount to an income tax return filed for 13
	6290	+	any taxable year after the taxable year in which the costs were incurred. 14
	6291	+
	6292	+	(d) If the credit allowed for any taxable year under this section exceeds the total 15
	6293	+	tax otherwise due, an individual or corporation may apply the excess as a credit against 16
	6294	+	the State income tax for succeeding taxable years until the full amount of the excess is 17
	6295	+	used. 18
	6296	+
	6297	+	(e) The Department, in consultation with the Comptroller, shall adopt 19
	6298	+	regulations to carry out the provisions of this section. 20
	6299	+
	6300	+	(f) In accordance with § 2.5–109 of the Economic Development Article, the 21
	6301	+	Department shall submit a report on the number of credits certified in the previous 22
	6302	+	calendar year.] 23
	6303	+
	6304	+	10–733. 24
	6305	+
	6306	+	(a) (1) In this section the following words have the meanings indicated. 25
	6307	+
	6308	+	(2) (i) “Company” means any entity of any form duly organized and 26
	6309	+	existing under the laws of any jurisdiction for the purpose of conducting business for profit. 27
	6310	+
	6311	+	(ii) “Company” includes an entity that becomes duly organized and 28
	6312	+	existing under the laws of any jurisdiction for the purpose of conducting business for profit 29
	6313	+	within 4 months of receiving a qualified investment. 30
	6314	+
	6315	+	(iii) “Company” does not include a sole proprietorship. 31
	6316	+
	6317	+	(3) “Department” means the Department of Commerce. 32
	6318	+	132 SENATE BILL 427
	6319	+
	6320	+
	6321	+	(4) (i) “Investment” means the contribution of money in cash or cash 1
	6322	+	equivalents expressed in United States dollars, at a risk of loss, to a qualified Maryland 2
	6323	+	technology company in exchange for stock, a partnership or membership interest, or any 3
	6324	+	other ownership interest in the equity of the qualified Maryland technology company, title 4
	6325	+	to which ownership interest shall vest in the qualified investor. 5
	6326	+
	6327	+	(ii) “Investment” does not include debt unless it is convertible debt. 6
	6328	+
	6329	+	(iii) For purposes of this section, an investment is at risk of loss when 7
	6330	+	repayment entirely depends on the success of the business operations of the qualified 8
	6331	+	company. 9
	6332	+
	6333	+	(5) (i) “Qualified investor” means any individual or entity that invests 10
	6334	+	at least $25,000 in a qualified Maryland technology company and that is required to file an 11
	6335	+	income tax return in any jurisdiction. 12
	6336	+
	6337	+	(ii) “Qualified investor” does not include: 13
	6338	+
	6339	+	1. a qualified pension plan, an individual retirement 14
	6340	+	account, or any other qualified retirement plan under the Employee Retirement Income 15
	6341	+	Security Act of 1974, as amended, or fiduciaries or custodians under such plans, or similar 16
	6342	+	tax–favored plans or entities under the laws of other countries; or 17
	6343	+
	6344	+	2. a founder or current employee of the qualified Maryland 18
	6345	+	technology company, if the company has been in active business for more than 5 years. 19
	6346	+
	6347	+	(6) (i) “Qualified Maryland technology company” means a technology 20
	6348	+	company that has met the criteria set forth in subsection (b)(3) of this section. 21
	6349	+
	6350	+	(ii) “Qualified Maryland technology company” does not include a 22
	6351	+	technology company that is or has been certified as a qualified Maryland biotechnology 23
	6352	+	company under § 10–725 of this subtitle. 24
	6353	+
	6354	+	(7) “Secretary” means the Secretary of Commerce. 25
	6355	+
	6356	+	(8) “Technology company” means a company organized for profit that is 26
	6357	+	engaged in the research, development, or commercialization of innovative and proprietary 27
	6358	+	technology. 28
	6359	+
	6360	+	(b) (2) Subject to paragraph (3) of this subsection and subsections (d) and (e) 29
	6361	+	of this section, for the taxable year in which an investment in a qualified Maryland 30
	6362	+	technology company is made, a qualified investor may claim a credit against the State 31
	6363	+	income tax in an amount equal to the amount of tax credit stated in the final credit 32
	6364	+	certificate approved by the Secretary for the investment as provided under this section. 33
	6365	+
	6366	+	(3) To be eligible for the tax credit described in paragraph (2) of this 34
	6367	+	subsection, the qualified investor: 35 SENATE BILL 427 133
	6368	+
	6369	+
	6370	+
	6371	+	(ii) at least 30 days prior to making an investment in a qualified 1
	6372	+	Maryland technology company for which the qualified investor would be eligible for an 2
	6373	+	initial tax credit certificate under this subsection, shall submit an application to the 3
	6374	+	Department containing the following: 4
	6375	+
	6376	+	2. evidence that the qualified Maryland technology company 5
	6377	+	has satisfied the following minimum requirements for consideration as a qualified 6
	6378	+	Maryland technology company: 7
	6379	+
	6380	+	J. meets any other reasonable requirements of the 8
	6381	+	Department evidencing that the company is a going concern engaged in the research, 9
	6382	+	development, or commercialization of innovative and proprietary technology in an eligible 10
	6383	+	technology sector identified in accordance with paragraph (4) of this subsection; and 11
	6384	+
	6385	+	(4) (i) [After consulting with the Department and the Maryland 12
	6386	+	Department of Labor, each year the Maryland Economic Development Commission shall: 13
	6387	+
	6388	+	1. evaluate the potential employment and economic growth 14
	6389	+	of Maryland’s technology sectors; and 15
	6390	+
	6391	+	2. recommend eligible technology sectors to the Department. 16
	6392	+
	6393	+	(ii)] Each year the Department shall[: 17
	6394	+
	6395	+	1. consider the recommendation of the Maryland Economic 18
	6396	+	Development Commission; and 19
	6397	+
	6398	+	2.] establish a list of technology sectors that will be eligible 20
	6399	+	for the tax credit under this section. 21
	6400	+
	6401	+	[(iii)] (II) In determining whether a company is engaged in an 22
	6402	+	eligible technology sector, the Department shall consider the definitions set forth in the 23
	6403	+	North American Industry Classification System (NAICS). 24
	6404	+
	6405	+	(5) IF THE QUALIFIED INVE STOR ALLOWED TO CLAI M A CREDIT 25
	6406	+	UNDER PARAGRAPH (2) OF THIS SUBSECTION I S A PASS–THROUGH EN TITY THAT 26
	6407	+	PAYS THE INCOME TAX IMPOSED UNDER § 10–102.1 OF THIS TITLE ON BEH ALF OF 27
	6408	+	ALL MEMBERS OF THE P ASS–THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY 28
	6409	+	CLAIM AND ALLOCATE T HE CREDIT AMONG MEMB ERS OF THE PASS –THROUGH 29
	6410	+	ENTITY IN ANY MANNER . 30
	6411	+
	6412	+	(d) (1) The tax credit allowed in an initial tax credit certificate issued under 31
	6413	+	this section is: 32
	6414	+
	6415	+	(i) except as provided in item (ii) of this paragraph, 33% of the 33 134 SENATE BILL 427
	6416	+
	6417	+
	6418	+	investment in a qualified Maryland technology company, not to exceed $250,000; or 1
	6419	+
	6420	+	(ii) [50%] 75% of the investment in the qualified Maryland 2
	6421	+	technology company, not to exceed [$500,000] $750,000, if a qualified Maryland 3
	6422	+	technology company[: 4
	6423	+
	6424	+	1. is located in Allegany County, Dorchester County, Garrett 5
	6425	+	County, or Somerset County; or 6
	6426	+
	6427	+	2.] is located in a Regional Institution Strategic Enterprise 7
	6428	+	zone that is designated under [Title 5, Subtitle 14] TITLE 10, SUBTITLE 1 of the Economic 8
	6429	+	Development Article[, is based on technology that was developed at a qualified institution 9
	6430	+	within that zone, and has been in active business not longer than 7 years]. 10
	6431	+
	6432	+	(2) During any fiscal year, the Secretary may not certify eligibility for tax 11
	6433	+	credits for investments in: 12
	6434	+
	6435	+	(i) a single qualified Maryland technology company that in the 13
	6436	+	aggregate exceed 15% of the total appropriations to the Maryland Innovation Investment 14
	6437	+	Tax Credit Reserve Fund for that fiscal year; or 15
	6438	+
	6439	+	(ii) a single technology sector that in the aggregate exceed 25% of the 16
	6440	+	total appropriations to the Maryland Innovation Investment Tax Credit Reserve Fund for 17
	6441	+	that fiscal year. 18
	6442	+
	6443	+	(3) (I) If the credit allowed under this section in any taxable year 19
	6444	+	exceeds the State income tax for that taxable year, an individual or a corporation may claim 20
	6445	+	a refund in the amount of the excess. 21
	6446	+
	6447	+	(II) IF THE QUALIFIED INVESTOR A LLOWED TO CLAIM A RE FUND 22
	6448	+	UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH IS A PASS–THROUGH ENTITY THAT 23
	6449	+	PAYS THE INCOME TAX IMPOSED UNDER § 10–102.1 OF THIS TITLE ON BEH ALF OF 24
	6450	+	ALL MEMBERS OF THE P ASS–THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY 25
	6451	+	CLAIM AND ALLOCATE T HE CREDIT AMONG MEMB ERS OF THE PASS –THROUGH 26
	6452	+	ENTITY IN ANY MANNER . 27
	6453	+
	6454	+	(J) THE DEPARTMENT MAY NOT AP PROVE A CREDIT UNDER THIS SECTION 28
	6455	+	FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2029. 29
	6456	+
	6457	+	10–733.1. 30
	6458	+
	6459	+	(a) (1) In this section the following words have the meanings indicated. 31
	6460	+
	6461	+	(2) “Cybersecurity business” means an entity organized for profit that is 32
	6462	+	engaged primarily in the development of innovative and proprietary cybersecurity 33
	6463	+	technology or the provision of cybersecurity service. 34 SENATE BILL 427 135
	6464	+
	6465	+
	6466	+
	6467	+	(3) “Cybersecurity service” means an activity that is associated with a 1
	6468	+	category or subcategory identified under the Framework Core established by the National 2
	6469	+	Institute of Standards and Technology’s Cybersecurity Framework. 3
	6470	+
	6471	+	(4) “Cybersecurity technology” means products or goods intended to detect 4
	6472	+	or prevent activity intended to result in unauthorized access to, exfiltration of, 5
	6473	+	manipulation of, or impairment to the integrity, confidentiality, or availability of an 6
	6474	+	information system or information stored on or transiting an information system. 7
	6475	+
	6476	+	(5) “Department” means the Department of Commerce. 8
	6477	+
	6478	+	(6) [“Panel” means the panel that the Department may establish under 9
	6479	+	subsection (c) of this section composed of experts in the areas of cybersecurity technology 10
	6480	+	and cybersecurity service. 11
	6481	+
	6482	+	(7)] “Qualified buyer” means any entity [that has fewer than 50 employees 12
	6483	+	in the State and] that is required to file an income tax return in the State. 13
	6484	+
	6485	+	[(8)] (7) “Qualified seller” means a cybersecurity business that: 14
	6486	+
	6487	+	(i) has its headquarters and base of operations in the State; 15
	6488	+
	6489	+	(ii) 1. has less than [$5,000,000] $10,000,000 in annual 16
	6490	+	revenue; 17
	6491	+
	6492	+	2. is a minority–owned, woman–owned, veteran–owned, or 18
	6493	+	service–disabled–veteran–owned business; or 19
	6494	+
	6495	+	3. is located in a historically underutilized business zone 20
	6496	+	designated by the United States Small Business Administration; 21
	6497	+
	6498	+	(iii) 1. owns or has properly licensed any proprietary 22
	6499	+	cybersecurity technology; or 23
	6500	+
	6501	+	2. provides a cybersecurity service; 24
	6502	+
	6503	+	(iv) is in good standing; 25
	6504	+
	6505	+	(v) is current in the payment of all tax obligations to the State or any 26
	6506	+	unit or subdivision of the State; and 27
	6507	+
	6508	+	(vi) is not in default under the terms of any contract with, 28
	6509	+	indebtedness to, or grant from the State or any unit or subdivision of the State. 29
	6510	+
	6511	+	(b) (1) THERE IS A BUY MARYLAND CYBERSECURITY TAX CREDIT 30 136 SENATE BILL 427
	6512	+
	6513	+
	6514	+	AUTHORIZED UNDER THI S SECTION. 1
	6515	+
	6516	+	(2) THE BUY MARYLAND CYBERSECURITY TAX CREDIT IS INTENDED 2
	6517	+	TO PROMOTE THE CYBER SECURITY INDUSTRY IN MARYLAND BY HELPING 3
	6518	+	MARYLAND BUSINESSES AND NONPR OFITS PURCHASE CYBER SECURITY 4
	6519	+	TECHNOLOGIES AND SER VICES FROM MARYLAND CYBERSECURIT Y COMPANIES TO 5
	6520	+	PROTECT BUSINESS AND CUSTOMER INFORMATION . 6
	6521	+
	6522	+	[(1)] (3) Subject to paragraphs [(2) and (3)] (4) THROUGH (6) of this 7
	6523	+	subsection, a qualified buyer may claim a credit against the State income tax in an amount 8
	6524	+	equal to 50% of the cost incurred during the taxable year to purchase cybersecurity 9
	6525	+	technology or a cybersecurity service from one or more qualified sellers. 10
	6526	+
	6527	+	[(2)] (4) For any taxable year, the credit allowed under this section may 11
	6528	+	not exceed $50,000 for each qualified buyer. 12
	6529	+
	6530	+	(5) IF THE CREDIT ALLOWED UNDER THIS SECTION I N ANY TAXABLE 13
	6531	+	YEAR EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR , A QUALIFIED 14
	6532	+	BUYER MAY CLAIM A RE FUND IN THE AMOUNT OF THE EXCESS . 15
	6533	+
	6534	+	[(3)] (6) For any taxable year, the aggregate credits claimed for 16
	6535	+	cybersecurity technology or cybersecurity service purchased from a single qualified seller 17
	6536	+	may not exceed [$200,000] $1,000,000. 18
	6537	+
	6538	+	(c) [(1) The Department, in consultation with the Maryland Technology 19
	6539	+	Development Corporation, may establish a panel composed of experts in the areas of 20
	6540	+	cybersecurity technology and cybersecurity service. 21
	6541	+
	6542	+	(2) The Department may establish the panel under service contracts with 22
	6543	+	independent reviewers. 23
	6544	+
	6545	+	(3) The panel shall assist the Department in its determination as to 24
	6546	+	whether a company is a qualified seller. 25
	6547	+
	6548	+	(4) A member of the panel is not eligible to receive any benefit, direct or 26
	6549	+	indirect, from the tax credit under this section. 27
	6550	+
	6551	+	(5) (i) Except as provided in subparagraph (ii) of this paragraph, 28
	6552	+	Division II of the State Finance and Procurement Article does not apply to a service that 29
	6553	+	the Department obtains under this section. 30
	6554	+
	6555	+	(ii) The Department is subject to Title 12, Subtitle 4 of the State 31
	6556	+	Finance and Procurement Article for services the Department obtains under this section. 32
	6557	+
	6558	+	(d)] (1) (i) A qualified buyer eligible for the credit under this section may 33 SENATE BILL 427 137
	6559	+
	6560	+
	6561	+	apply to the Department for a credit certificate that states the amount of the credit the 1
	6562	+	qualified buyer may claim under subsection (b) of this section. 2
	6563	+
	6564	+	(ii) A qualified buyer shall attach the credit certificate to the income 3
	6565	+	tax return on which the qualified buyer claims the credit under subsection (b) of this 4
	6566	+	section. 5
	6567	+
	6568	+	(2) Subject to paragraph (3) of this subsection, the Secretary of Commerce 6
	6569	+	shall approve each application under paragraph (1) of this subsection that qualifies for a 7
	6570	+	credit certificate. 8
	6571	+
	6572	+	(3) [(i)] The total amount of the credit certificates approved by the 9
	6573	+	Secretary of Commerce under this subsection may not exceed: 10
	6574	+
	6575	+	1. for taxable year 2018, $2,000,000; and 11
	6576	+
	6577	+	2. for taxable year 2019 and each taxable year thereafter, 12
	6578	+	$4,000,000. 13
	6579	+
	6580	+	[(ii) For each taxable year, the Secretary of Commerce shall award 14
	6581	+	25% of the amount of tax credits authorized under subparagraph (i) of this paragraph to 15
	6582	+	qualified buyers that purchase cybersecurity services.] 16
	6583	+
	6584	+	[(e)] (D) (1) The Department may revoke its certification of a credit under 17
	6585	+	this section if any representation made in connection with the application for the 18
	6586	+	certification is determined by the Department to have been false. 19
	6587	+
	6588	+	(2) The revocation may be in full or in part as the Department may 20
	6589	+	determine and, subject to paragraph (3) of this subsection, shall be communicated to the 21
	6590	+	qualified buyer and the Comptroller. 22
	6591	+
	6592	+	(3) The qualified buyer shall have an opportunity to appeal any revocation 23
	6593	+	to the Department before notification of the Comptroller. 24
	6594	+
	6595	+	(4) The Comptroller may make an assessment against the qualified buyer 25
	6596	+	to recapture any amount of tax credit that the qualified buyer has already claimed. 26
	6597	+
	6598	+	[(f)] (E) In accordance with § 2.5–109 of the Economic Development Article, the 27
	6599	+	Department shall submit a report on the credit certificates awarded under this section for 28
	6600	+	the calendar year. 29
	6601	+
	6602	+	[(g)] (F) The Department and the Comptroller jointly shall adopt regulations to 30
	6603	+	carry out this section and to specify criteria and procedures for application for, approval of, 31
	6604	+	and monitoring continuing eligibility for the tax credit under this section. 32
	6605	+
	6606	+	(G) THE DEPARTMENT MAY NOT AP PROVE A CREDIT UNDER THIS SECTION 33 138 SENATE BILL 427
	6607	+
	6608	+
	6609	+	FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2029. 1
	6610	+
	6611	+	Chapter 515 of the Acts of 2000, as amended by Chapter 98 of the Acts of 2005, 2
	6612	+	Chapter 20 of the Acts of 2010, Chapter 85 of the Acts of 2019, and Chapter 114 of 3
	6613	+	the Acts of 2021 4
	6614	+
	6615	+	SECTION 2. AND BE IT FURTHER ENACTED, That: 5
	6616	+
	6617	+	(a) Except as otherwise provided in this section, this Act shall be applicable to all 6
	6618	+	taxable years beginning after December 31, 1999 [but before January 1, 2026]. 7
	6619	+
	6620	+	(b) If a taxpayer’s taxable year for income tax purposes is not the calendar year[: 8
	6621	+
	6622	+	(1)], for the taxable year that ends in calendar year 2000, the taxpayer may 9
	6623	+	apply for a prorated credit for research and development expenses paid or incurred in the 10
	6624	+	taxable year for that part of the taxable year that falls in calendar year 2000[; and 11
	6625	+
	6626	+	(2) for the taxable year that begins in calendar year 2025, the taxpayer 12
	6627	+	may apply for only a prorated credit for research and development expenses paid or 13
	6628	+	incurred in the taxable year for that part of the taxable year that falls in calendar year 14
	6629	+	2025]. 15
	6630	+
	6631	+	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
	6632	+	1, 2000. [It shall remain effective for a period of 27 years and, at the end of June 30, 2027, 17
	6633	+	with no further action required by the General Assembly, this Act shall be abrogated and 18
	6634	+	of no further force and effect.] 19
	6635	+
	6636	+	Chapter 516 of the Acts of 2000, as amended by Chapter 98 of the Acts of 2005, 20
	6637	+	Chapter 20 of the Acts of 2010, Chapter 85 of the Acts of 2019, and Chapter 114 of 21
	6638	+	the Acts of 2021 22
	6639	+
	6640	+	SECTION 2. AND BE IT FURTHER ENACTED, That: 23
	6641	+
	6642	+	(a) Except as otherwise provided in this section, this Act shall be applicable to all 24
	6643	+	taxable years beginning after December 31, 1999 [but before January 1, 2026]. 25
	6644	+
	6645	+	(b) If a taxpayer’s taxable year for income tax purposes is not the calendar year[: 26
	6646	+
	6647	+	(1)], for the taxable year that ends in calendar year 2000, the taxpayer may 27
	6648	+	apply for a prorated credit for research and development expenses paid or incurred in the 28
	6649	+	taxable year for that part of the taxable year that falls in calendar year 2000[; and 29
	6650	+
	6651	+	(2) for the taxable year that begins in calendar year 2025, the taxpayer 30
	6652	+	may apply for only a prorated credit for research and development expenses paid or 31
	6653	+	incurred in the taxable year for that part of the taxable year that falls in calendar year 32
	6654	+	2025]. 33 SENATE BILL 427 139
	6655	+
	6656	+
	6657	+
	6658	+	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
	6659	+	1, 2000. [It shall remain effective for a period of 27 years and, at the end of June 30, 2027, 2
	6660	+	with no further action required by the General Assembly, this Act shall be abrogated and 3
	6661	+	of no further force and effect.] 4
	6662	+
	6663	+	SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 5
	6664	+	as follows: 6
	6665	+
	6666	+	Chapter 390 of the Acts of 2013, as amended by Chapter 578 of the Acts of 2018 7
	6667	+	and Chapter 113 of the Acts of 2021 8
	6668	+
	6669	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
	6670	+	1, 2013, and shall be applicable to all taxable years beginning after December 31, 2013[, 10
	6671	+	but before January 1, 2025. This Act shall remain effective for a period of 12 years and, at 11
	6672	+	the end of June 30, 2025, with no further action required by the General Assembly, this Act 12
	6673	+	shall be abrogated and of no further force and effect]. 13
	6674	+
	6675	+	SECTION 5. AND BE IT FURTHER ENACTED, That the terms of the members of 14
	6676	+	the Maryland Life Sciences Advisory Board appointed by the Governor under § 3–203(a)(3) 15
	6677	+	of the Economic Development Article, as enacted by Section 2 of this Act, shall expire as 16
	6678	+	follows: 17
	6679	+
	6680	+	(1) five members in 2026; 18
	6681	+
	6682	+	(2) five members in 2027; and 19
	6683	+
	6684	+	(3) six members in 2028. 20
	6685	+
	6686	+	SECTION 6. AND BE IT FURTHER ENACTED, That the publisher of the 21
	6687	+	Annotated Code of Maryland, in consultation with and subject to the approval of the 22
	6688	+	Department of Legislative Services, shall correct, with no further action required by the 23
	6689	+	General Assembly, cross–references and terminology rendered incorrect by this Act. The 24
	6690	+	publisher shall adequately describe any correction that is made in an editor’s note following 25
	6691	+	the section affected. 26
	6692	+
	6693	+	SECTION 7. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall be 27
	6694	+	applicable to all taxable years beginning after December 31, 2024. 28
	6695	+
	6696	+	SECTION 8. AND BE IT FURTHER ENACTED, That Section 4 of this Act shall take 29
	6697	+	effect June 1, 2025. 30
	6698	+
	6699	+	SECTION 9. AND BE IT FURTHER ENACTED, That, except as provided in Section 31
	6700	+	8 of this Act, this Act shall take effect July 1, 2025. 32