In this subtitle the following words have the meanings indicated. “Board” means the Board of Directors of the Corporation. “Bond” means a bond or note of the Corporation issued under this subtitle. “Bond” includes: a bond anticipation note; a revenue anticipation note; a grant anticipation note; a refunding bond; a note in the nature of commercial paper; and any other evidence of indebtedness of the Corporation, whether a general or limited obligation. “Corporation” means the Maryland Economic Development Corporation. “Cost” includes: the purchase price of a project; the cost to acquire any right, title, or interest in a project; the cost of any improvement; the amount to be paid to discharge each obligation necessary or desirable to vest title to any part of the project in the Corporation or other owner; the cost of any property, right, easement, franchise, and permit; the cost of labor and equipment; financing charges; interest before and during construction and, if the Corporation determines, for a limited period after the completion of construction; reserves for principal and interest and for improvements; the cost of revenue and cost estimates, engineering and legal services, plans, specifications, studies, surveys, demonstrations, and other expenses necessary or incident to determining the feasibility of an acquisition or improvement; administrative expenses; and other expenses as necessary or incident to: financing a project; acquiring and improving a project; placing a project in operation by the Corporation or other owner, including reasonable provision for working capital; and operating and maintaining a project. “Finance” includes refinance. “Governmental unit” means a county, municipal corporation, unit of State or local government, or other public body created under State or local law. “Improve” means to add, alter, construct, equip, expand, extend, improve, install, reconstruct, rehabilitate, remodel, or repair. “Improvement” means addition, alteration, construction, equipping, expansion, extension, improvement, installation, reconstruction, rehabilitation, remodeling, or repair. “Person” has the meaning stated in § 9–101 of this article. “Person” also includes: a person that is created, owned, or controlled by the Corporation or of which the Corporation is a member; a for–profit or nonprofit entity; and a governmental unit. “Project” means any property, the acquisition or improvement of which the Board, in its sole discretion, determines by resolution will accomplish at least one of the legislative purposes listed in § 10–104(b) of this subtitle, whether or not the property: is or will be used or operated for profit or not for profit; is or will be located on a single site or multiple sites; or may be financed by bonds, the interest on which is exempt from income taxation under federal law. “Project” includes: land or an interest in land; structures, equipment, furnishings, rail or motor vehicles, barges, and boats; property and rights related to the property, appurtenances, rights–of–way, franchises, and easements; property that is functionally related and subordinate to property described in this subsection; and patents, licenses, and other rights necessary or useful in the improvement or operation of a project. “Revenues” means the income, revenue, and other money the Corporation receives from or in connection with a project, and all other income of the Corporation, subject to § 10–115(11) of this subtitle. “Revenues” includes grants, rentals, rates, fees, and charges for the use of the services furnished or available.

The General Assembly finds that: the State’s economy continues to experience technological change and restructuring; technological change may result in economic contraction and dislocation, but affords opportunities to expand productive employment and expand the State’s economy and tax base; the establishment of a public corporation to acquire or improve projects: serves the public interest by accomplishing one or more of the Corporation’s legislative purposes listed in subsection (b) of this section; and complements existing State marketing programs administered by the Department and through the Department’s financial assistance programs including the Maryland Industrial Development Financing Authority and the Maryland Economic Development Assistance Authority under Title 5 of this article; and the State lacks and needs direct property development capability for economic development purposes. The legislative purposes of the Corporation are to: relieve unemployment in the State; encourage the increase of business activity and commerce and a balanced economy in the State; help retain and attract business activity and commerce in the State; promote economic development; and promote the health, safety, right of gainful employment, and welfare of residents of the State. The General Assembly intends that: the Corporation operate and exercise its corporate powers in all areas of the State; without limiting its authority to otherwise exercise its corporate powers, the Corporation exercise its corporate powers to assist governmental units and State and local economic development agencies to contribute to the expansion, modernization, and retention of existing enterprises in the State as well as the attraction of new business to the State; the Corporation cooperate with workforce development boards, private industry councils, representatives of labor, and governmental units in maximizing new economic opportunities for residents of the State; the Corporation accomplish at least one of the purposes listed in subsection (b) of this section and complement existing State marketing and financial assistance programs by: owning projects; leasing projects to other persons; or lending the proceeds of bonds to other persons to finance the costs of acquiring or improving projects that the persons own or will own; and the Corporation not own and operate a project unless: the Board determines by resolution that the private sector has not demonstrated serious and significant interest and development capacity to own and operate the project; or a representative of a governmental unit requests in writing that the Corporation own and operate the project.

A Board of Directors shall manage the Corporation and exercise its powers. The Board consists of the following 12 members: as ex officio voting members: the Secretary; and the Secretary of Transportation; and the following members, appointed by the Governor with the advice and consent of the Senate: two representatives of local government; three members who are knowledgeable in real estate or commercial financing; three members who are knowledgeable in industrial development or industrial relations; and two members of the general public. Each member of the Board shall be a resident of the State. In appointing Board members, the Governor shall consider geographic diversity and minority representation. The term of an appointed member is 4 years. The terms of the appointed members are staggered as required by the terms provided for members of the Board on October 1, 2008. At the end of a term, a member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. Before taking office, each member appointed to the Board shall take the oath required by Article 1, § 9 of the Maryland Constitution.

Except as otherwise provided in this section, in exercising its powers, the Corporation: may carry out its corporate purposes without the consent of any State unit; and is not subject to: Title 12, Subtitles 1 through 3 of this article; the following provisions of the Local Government Article: Title 18, Subtitle 1 (Parking Authorities Act); and Title 18, Subtitle 2 (Ocean City Convention Center); the following provisions of the State Finance and Procurement Article: Title 2, Subtitles 2 (Gifts and Grants), 4 (Water and Sewerage Systems), and 5 (Facilities for the Handicapped); Title 3 (Budget and Management); Title 4 (Department of General Services); Title 5A (Division of Historical and Cultural Programs); Title 6, Subtitle 1 (Studies and Estimates); Title 7, Subtitles 1 (State Operating Budget), 2 (Disbursements and Expenditures), and 3 (Unspent Balances); §§ 8–127, 8–128, and 8–129 (certain restrictions on State general obligation bonds); Title 8, Subtitle 1, Part V (State Revenue Anticipation Notes); Title 10 (Board of Public Works – Miscellaneous Provisions); and Division II (General Procurement Law); the following provisions of the State Government Article: Title 9, Subtitles 10 (State Archives and Artistic Property) and 17 (Maryland State Employees Surety Bond Committee); and Title 11 (Consolidated Procedures for Development Permits); and Article 41 of the Code. The Corporation is subject to: the Public Information Act; and the Open Meetings Act. For purposes of the Open Meetings Act, a project site visit or educational field tour may not be considered a meeting of the Corporation if no organizational business is conducted. The Corporation, its officers, and its employees are subject to the Public Ethics Law. The officers and employees of the Corporation are not subject to: Division II of the State Personnel and Pensions Article; or the provisions of Division I of the State Personnel and Pensions Article that govern the State Personnel Management System. The Corporation is a public body under Title 5, Subtitle 4 of this article, the Maryland Industrial Development Financing Authority Act, for purposes of applying for, receiving, and making agreements in connection with: a loan; a grant; insurance; or any other form of financial assistance. The Corporation is subject to the same State and local regulatory requirements as any private corporation. A project of the Corporation is subject to the zoning and subdivision regulations of the jurisdiction where it is located. The Corporation, its officers, and its employees are subject to Title 12, Subtitle 4 of the State Finance and Procurement Article.

The Corporation may: adopt bylaws for the conduct of its business; adopt a seal; maintain offices at a place it designates in the State; accept loans, grants, or assistance of any kind from the federal government, a governmental unit, a college or university, or a private source; enter into contracts and other legal instruments; sue and be sued in its own name; acquire, purchase, hold, lease as lessee, and use any franchise, patent, or license and real, personal, mixed, tangible, or intangible property, or any interest in property, necessary or convenient to carry out its purposes; sell, lease as lessor, transfer, and dispose of its property or interest in property; fix and collect rates, rentals, fees, royalties, and charges for services, resources, and facilities it provides or makes available; with the owner’s permission, enter lands, waters, or premises to make a survey, sounding, boring, or examination to accomplish a purpose authorized by this subtitle; further define or limit the term “revenues” defined in § 10–101 of this subtitle as the term applies to a particular project, financing, or other matter; create, own, control, or be a member of a corporation, limited liability company, partnership, or other person, whether for–profit or nonprofit; exercise a power usually possessed by a private corporation in performing similar functions unless to do so would conflict with State law; and do all things necessary or convenient to carry out the powers expressly granted by this subtitle.

The Corporation may: acquire, improve, develop, manage, market, maintain, lease as lessor or as lessee, and operate a project in the State; acquire, directly or through a person or governmental unit, by purchase, gift, or devise, property, franchises, and other interests in land, including land lying under water and riparian rights, located in or outside the State as necessary or convenient to improve or operate a project, on terms and at prices that the Corporation considers reasonable; if approved by resolution by at least a two–thirds majority of the legislative body of each governmental unit in which the property is located, acquire real property or rights or easements in real property for a project by condemnation for public use in accordance with applicable law; and make loans to a person to: finance all or a part of the acquisition or improvement of a project; and refund outstanding bonds, mortgages, advances, loans, or other obligations of the person to finance all or part of the acquisition or improvement of a project. The power of condemnation of the Corporation under subsection (a)(3) of this section may not exceed the power of condemnation of the governmental unit in which the property is located.

The Corporation may: borrow money and issue bonds to finance any part of the cost of a project or for any other corporate purpose of the Corporation; secure the payment of any portion of the borrowing by pledge of or mortgage or deed of trust on property or revenues of the Corporation; combine projects for financing, make agreements with or for the benefit of the bondholders or with others in connection with the issuance or future issuance of bonds, as the Corporation considers advisable; and otherwise provide for the security of bonds and the rights of bondholders. In addition to the powers of the Corporation under subsection (a) of this section, for the purpose of funding the purchase or condemnation by the State for public use of the property as authorized by §§ 11–520 and 11–521 of the Business Regulation Article, the Corporation may borrow money and issue bonds to finance the cost of acquiring by purchase or completing the condemnation process by the State in accordance with applicable legal standards.

The Corporation may authorize the issuance of revenue bonds by resolution. The Corporation may issue the bonds at one time or in one or more series from time to time. The Corporation shall determine: the date of the bonds; the maturity dates of the bonds, which may not exceed 40 years from the date of issue; the interest rates on the bonds; the medium of payment of the principal of and interest on the bonds; the form of the bonds; the manner of executing the bonds; the denominations of the bonds; and the place at which the principal of and interest on the bonds will be payable, including at a bank or trust company in or outside the State. An officer’s signature or facsimile signature on a bond remains valid even if the officer leaves office before the bond is delivered. Between successive holders, bonds are negotiable instruments under Title 3 of the Maryland Uniform Commercial Code. Bonds may be registrable. The Corporation shall sell the bonds by competitive or negotiated sale in a manner and for a price the Corporation determines to be in its best interests. Bonds are exempt from §§ 8–206 and 8–208 of the State Finance and Procurement Article. Bond proceeds may be placed in escrow pending application of the proceeds to the purposes for which the bonds are issued.

This section does not prevent the Corporation from pledging its full faith and credit to the payment of a bond. This section does not limit the ability of the State or a governmental unit to impose and collect an assessment, rate, fee, or charge to pay to the Corporation any cost, including the principal of and interest on a bond, under an agreement between the Corporation and the State or governmental unit. A bond: is not a debt, liability, or a pledge of the full faith and credit of the State or a governmental unit; and is payable solely from revenues provided under this subtitle. The issuance of a bond is not directly, indirectly, or contingently a moral or other obligation of the State or a governmental unit to levy or pledge any tax or to make an appropriation to pay the bond. Each bond shall state on its face that: neither the State nor any governmental unit is obliged to pay the principal of or interest on the bond, except from revenues pledged to payment of the bond; and neither the full faith and credit nor the taxing power of the State or a governmental unit is pledged to the payment of the principal of or interest on the bond.

The Corporation may secure a bond by a trust agreement between the Corporation and a corporate trustee. A corporate trustee may be any trust company or bank that has the powers of a trust company in or outside the State. A corporation or trust company incorporated in the State may: act as depository of bond proceeds or revenues; and furnish an indemnity bond or pledge security that the Corporation requires. The trust agreement or the resolution that provides for the issuance of a bond may: state the rights and remedies of bondholders and any trustee; contain provisions to protect and enforce the rights and remedies of bondholders; contain covenants stating the duties of the Corporation as to the custody, safeguarding, and application of money; restrict the individual rights of action of bondholders; provide for the payment of the bond proceeds and revenues to an officer, board, or depository that the Corporation determines with the safeguards and restrictions that the Corporation determines; and provide for the method of disbursement of the bond proceeds and revenues, with the safeguards and restrictions that the Corporation determines. Expenses incurred in carrying out a trust agreement may be treated as part of the cost of operation of the Corporation.

The Corporation may issue bonds to refund outstanding bonds, including paying: any redemption premium; interest accrued or to accrue to the date of redemption, purchase, or maturity of the bonds; and if considered advisable by the Corporation, any part of the cost of a project. Refunding bonds may be issued for any corporate purpose, including: realizing savings in the effective costs of debt service, directly or through a debt restructuring; alleviating an impending or actual default; or relieving the Corporation of a contractual agreement that the Corporation finds to be unreasonably onerous, impracticable, or impossible to perform. The Corporation may issue refunding bonds in one or more series in an amount greater than the amount of the bonds to be refunded. In addition to other sources of payment that the Corporation determines, refunding bonds may be payable from escrowed bond proceeds and earnings and profits on investments. Escrowed bond proceeds and earnings and profits on investments used under subparagraph (i) of this paragraph constitute revenues of a project under this subtitle. In the discretion of the Corporation, the proceeds of refunding bonds may be: applied to the purchase, retirement at maturity, or redemption of outstanding bonds on a date the Corporation determines; and pending application under item (1) of this subsection, placed in escrow. The Corporation may invest escrowed refunding bond proceeds in investments and other obligations, maturing on appropriate dates to assure the prompt payment of the principal of, interest on, and any redemption premium on the bonds to be refunded. Except as provided in subparagraph (ii) of this paragraph, the Corporation shall determine the investment of the proceeds of refunding bonds. If the Corporation loans the proceeds of refunding bonds to a person as provided in § 10–125 of this subtitle, the loan recipient shall determine the investment of the proceeds of refunding bonds. The earnings and profits on investments or other obligations may be applied to the payment of the bonds to be refunded. After the terms of the escrow have been fully satisfied, the balance of the proceeds and earnings and profits on investments or other obligations may be returned to the Corporation or the loan recipient for use in any lawful manner.

In this section, “Fund” means the Dorchester County Economic Development Fund. There is a Dorchester County Economic Development Fund in the Corporation. The Fund is a continuing, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article. The Corporation shall manage and administer the Fund on terms and conditions acceptable to the Corporation and the Department. The Comptroller shall account and collect for the Fund and disburse the revenues to the trustee maintaining the Fund for the Corporation. Any investment earnings of the Fund shall be paid into the Fund. The Fund consists of revenues from the hotel surcharge imposed under § 11–102(b) of the Tax – General Article. The Fund shall be used to: complete the Corporation project commonly known as the Chesapeake Bay Conference Center; and satisfy the full and final settlement of pending construction claims related to the project and any bonds issued in connection with those claims. The Fund may be pledged by the Corporation to pay bonds issued to satisfy the full and final settlement of pending construction claims on the project.

In this section the following words have the meanings indicated. “Corporation student housing project” means housing that is: a residence hall, dormitory, or other housing units established under this subtitle; owned or operated by the Corporation; and on land leased by the Corporation from the University System of Maryland. “Occupancy agreement” means a lease, license, or housing contract for any Corporation student housing project. An institution of higher education that leases land to the Corporation for the purpose of providing student housing shall provide the following information when a student applies to be a resident of either a Corporation student housing project or a residence hall that is owned by the institution of higher education: the names of all residences that a student may occupy; an indication of those residences that are Corporation student housing projects; and in plain language, a differentiation of the implications of the following required occupancy agreement provisions for students living in Corporation student housing projects compared to students living in residence halls that are owned by the institution of higher education: termination; force majeure; parties to the agreement; and start and end dates to the occupancy period. The information required under paragraph (1)(iii) of this subsection shall include a statement that: Corporation student housing projects are not owned or operated by the institution of higher education; the occupancy agreement that is required prior to taking possession of a unit in a Corporation student housing project is an agreement between the Corporation and the student and not between the student and the institution of higher education; and explains the student’s liability for rental payments if the student voluntarily or involuntarily vacates the Corporation student housing project. An occupancy agreement between the Corporation and a student living in a Corporation student housing project shall: indicate each reference to the Corporation in bold type; state that the Corporation is the owner of the Corporation student housing project; provide contact information for the management company of the Corporation student housing project; and in plain language, provide a differentiation of the implications of the following required occupancy agreement provisions for students living in Corporation student housing projects compared to students living in residence halls that are owned by the institution of higher education: termination; force majeure; parties to the agreement; and start and end dates to the occupancy period. The information required under paragraph (1)(iv) of this subsection shall include a statement that: Corporation student housing projects are not owned or operated by the institution of higher education; the occupancy agreement that is required prior to taking possession of a unit in a Corporation student housing project is an agreement between the Corporation and the student and not between the student and the institution of higher education; and explains the student’s liability for rental payments if the student voluntarily or involuntarily vacates the Corporation student housing project.

As soon as practical after the close of the fiscal year, an independent certified public accountant shall audit the financial books, records, and accounts of the Corporation. The audit shall include revenue and expense detail for each of the operating facilities of the Corporation. The Corporation shall select an accountant to conduct the audit who: is licensed to practice accountancy in the State; is experienced and qualified in the accounting and auditing of public entities; and does not have a direct or indirect personal interest in the fiscal affairs of the Corporation. Except as provided in subparagraph (ii) of this paragraph, on or before November 1 after each fiscal year, the accountant shall report the results of the audit, including the accountant’s unqualified opinion of the presentation of the financial position of the funds of the Corporation, individual financial detail for each of the operating facilities of the Corporation, and the results of the financial operations of the Corporation. If the accountant cannot express an unqualified opinion, the accountant shall explain in detail the reasons for the qualifications, disclaimers, or opinions, including recommendations for changes that could make future unqualified opinions possible. The State may audit the books, records, and accounts of the Corporation.

In this section the following words have the meanings indicated. “Fund” means the Strategic Infrastructure Revolving Loan Fund. “Priority funding area” means an area identified under § 5–7B–02 of the State Finance and Procurement Article. “Program” means the Strategic Infrastructure Revolving Loan Program. “Sustainable community” means an area designated under § 6–205 of the Housing and Community Development Article. “Transit–oriented development” has the meaning stated in § 7–101 of the Transportation Article. There is a Strategic Infrastructure Revolving Loan Program in the Maryland Economic Development Corporation. The purpose of the Program is to make loans for targeted investments in real estate and infrastructure projects to support transformative place–making, enhance transit–oriented development, enhance community development, and achieve inclusive and equitable economic growth objectives, with a focus on bringing underutilized assets into performance and generating revenue. There is a Strategic Infrastructure Revolving Loan Fund in the Corporation. The purpose of the Fund is to provide loans for the cost of infrastructure projects that meet the purposes of the Program. The Corporation shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; premiums, fees, interest payments, and principal payments on loans made under this section; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used only for loans made under the Program. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Expenditures from the Fund may be made only in accordance with the State budget. An applicant for a loan under this section shall submit to the Corporation an application on the form that the Corporation requires. The application shall include: a detailed strategic plan for the targeted investment; the amount of money required for the activities described in the strategic plan; the money available to the applicant without financial assistance from the Program; the amount of financial assistance requested from the Program; information relating to the financial status of the applicant, including, if applicable: a current balance sheet; a profit and loss statement; and credit references; and any other relevant information that the Corporation requests. An applicant is eligible for a loan under the Program for projects located in a sustainable community, priority funding area, or transit–oriented development area. The Corporation shall establish an Advisory Loan Committee to review loan applications and make recommendations to the Corporation on approval. In making loans, the Corporation shall prioritize projects that: activate underutilized property owned by the government and institutions; redevelop land contiguous to rail transit stations that is owned by the State, Baltimore City, or the Washington Metropolitan Area Transit Authority; offer significant development or redevelopment value; leverage private investment; and have the potential for significant job growth or retention. Loans may be used: to acquire property, including vacant sites; for design and development of a project; and for rehabilitation, construction, and demolition. The Corporation may set the terms and conditions for loans made under the Program, including the length of the loan term and renewals, appropriate fees, and loan amount per applicant. The Corporation shall prepare the loan documents. The loan documents shall include: the interest rate on the loan; the amount of the loan; repayment provisions for the loan; and any other provision that the Corporation determines is necessary, including a provision on taking liens and security interests in real or personal property. If a recipient of a loan under this section violates any provision of the loan documents or ceases to meet the requirements of this section, the Corporation may, on reasonable notice to the loan recipient: withhold further advances of loan proceeds until the loan recipient complies with the agreement or requirements; or exercise any other remedy provided in the loan documents. If a loan made under this section is in default, the Corporation may foreclose on a mortgage or deed of trust held as security for the loan in the manner provided under the Maryland Rules for foreclosures in private transactions. The Corporation may take title in the Corporation’s name to any property foreclosed and convey title to a bona fide purchaser. The Corporation shall adopt regulations to carry out this section.

In this part the following words have the meanings indicated. “Area” means a geographic area in one or more political subdivisions in the State described by a closed perimeter boundary. “Fund” means the Regional Institution Strategic Enterprise Zone Fund created under § 10–144 of this subtitle. “Nonprofit organization” means an organization that is exempt or eligible for exemption from taxation under § 501(c)(3) of the Internal Revenue Code. “Qualified institution” means an entity that is designated as a qualified institution under § 10–139 of this subtitle and may include: a regional higher education center as defined under § 10–101 of the Education Article; an institution of higher education as defined under § 10–101 of the Education Article; or a nonprofit organization that is affiliated with a federal agency. “RISE zone” means a geographic area in immediate proximity to a qualified institution that is targeted for increased economic and community development that meets the requirements of § 10–140 of this subtitle and is designated as a Regional Institution Strategic Enterprise zone by the Corporation under § 10–140 of this subtitle.

An institution may apply to the Corporation to be designated as a qualified institution. To be eligible for designation as a qualified institution, the applicant shall: evidence an intention: to make a significant financial investment or commitment in an area of the State that the applicant intends to become a RISE zone; to use the resources and expertise of the applicant to spur economic development and community revitalization in an area of the State that the applicant intends to become a RISE zone; and to create a significant number of new jobs within an area of the State that the applicant intends to become a RISE zone; have a demonstrated history of community involvement and economic development within the communities that the applicant serves; and meet the minimum financial qualifications established by the Corporation. If the applicant is a nonprofit organization that is not an institution of higher education, the application shall demonstrate an affiliation with a federal agency. In addition to the requirements under subsection (b) of this section, the Corporation may establish by regulation any other requirements necessary and appropriate in order for an applicant to be designated as a qualified institution. The Corporation shall adopt regulations that establish factors for evaluating applications under subsection (b) of this section. In the form and content acceptable to the Corporation, an applicant shall submit to the Corporation an application that contains the information that the Secretary considers necessary to evaluate the request for designation as a qualified institution. Within 90 days after submission of an application under this section, the Corporation shall approve or reject the application of an institution to be designated as a qualified institution. At least 30 days before approval or rejection of an application under this section, the Corporation shall notify the Legislative Policy Committee. The Legislative Policy Committee may provide advice to the Corporation regarding the approval or rejection of an institution as a qualified institution.

On or after July 1, 2026, a qualified institution shall apply jointly with a county, a municipal corporation, or the economic development agency of a county or municipal corporation to the Corporation to designate an area as a Regional Institution Strategic Enterprise zone. The application shall: be in the form and contain the information that the Corporation requires by regulation; state the boundaries of the area of the proposed RISE zone, not exceeding 500 acres; describe the nexus of the RISE zone with the qualified institution; and contain a plan that identifies the target strategy and anticipated economic impacts of the RISE zone. The Corporation may establish, by regulation, any other requirements necessary and appropriate for an area to be designated as a RISE zone. Unless a county in which a municipal corporation is located agrees to designation of a RISE zone in the municipal corporation, qualified property in the municipal corporation may not receive a tax credit against county property tax. Unless a municipal corporation located within a county agrees to designation of a RISE zone within its boundaries, qualified property in the county may not receive a tax credit against the municipal property tax. Within 120 days after submission of an application under this section, the Corporation shall: approve or reject an application for designation of a RISE zone, including approval or modification of the proposed boundaries of the RISE zone; and define the boundaries of the approved RISE zone. At least 45 days before approval or rejection of an application under this section, the Corporation shall notify the Legislative Policy Committee. The Legislative Policy Committee may provide advice to the Corporation regarding: the approval or rejection of the RISE zone; or the boundaries of the RISE zone proposed by the Corporation. Subject to subparagraph (ii) of this paragraph, the designation of an area as a RISE zone is effective for 10 years. Upon a joint application of a qualified institution, a county and, if applicable, a municipal corporation, or the economic development agency of a county or municipal corporation, the Corporation may renew a RISE zone for an additional 5 years. The Corporation may not: except as provided in item 2 of this item or paragraph (3) of this subsection, approve more than three RISE zones in a single county or municipal corporation; or except as provided in paragraph (3) of this subsection, approve more than four RISE zones in Baltimore City; or approve a RISE zone the geographic area of which exceeds 500 acres. The Corporation may approve one extraordinary RISE zone in a single county or municipal corporation for an area that, in the determination of the Secretary, promotes quantum computing. A RISE zone may not be required to be in the immediate geographic proximity of a qualified institution if an appropriate nexus for the increased economic and community development is established with the qualified organization. If the proposed RISE zone is in a rural part of the State, a qualified institution may not be required to be in the immediate area of the RISE zone. The designation of an area as a RISE zone may not be construed to limit or supersede a provision of a comprehensive plan, zoning ordinance, or other land use policy adopted by a county, municipal corporation, or bicounty agency with land use authority over the area designated as a RISE zone.

To the extent provided for in this section, a business entity that locates in a RISE zone is entitled to: for a business entity that locates in the RISE zone before January 1, 2023, the property tax credit under § 9–103.1 of the Tax – Property Article; for a taxable year beginning before January 1, 2023, the income tax credit under § 10–702 of the Tax – General Article; and priority consideration for financial assistance from programs in Title 5, Subtitle 1 of this article. For purposes of the income tax credit authorized under paragraph (1)(ii) of this subsection, the business entity is treated as being located in an enterprise zone. Subject to the limitations under subsection (a) of this section, a business entity that moves into or locates in a RISE zone on or after the date that the zone is designated under this part may qualify for the incentives under this section. A business entity may not qualify for the incentives under subsection (a) of this section unless the Corporation, in consultation with the county or municipal corporation in which a RISE zone is located, certifies the business entity and its location as consistent with the target strategy of the RISE zone. Unless a business entity makes a significant capital investment or expansion of its labor force after a RISE zone is designated, the incentives under this section are not available to a business entity that was in a RISE zone before the date that the zone is designated. The Corporation shall adopt regulations establishing factors to determine if a business entity makes a significant capital investment or expansion of its labor force under paragraph (1) of this subsection.

A qualified institution, the Corporation, a county and, if applicable, a municipal corporation, or the economic development agency of a county or municipal corporation may establish a program to provide rental assistance to a business entity that: moves into or locates in a RISE zone on or after the date that the zone is designated under this part; and has been in active business not longer than 7 years at the time that the business entity applies to receive rental assistance from the program. A business entity may not receive rental assistance under a rental assistance program established in accordance with subparagraph (i) of this paragraph for more than 5 years. A qualified institution, a county and, if applicable, a municipal corporation, or the economic development agency of a county or municipal corporation that establishes a rental assistance program in accordance with paragraph (1) of this subsection may submit a request to receive a distribution from the Fund. The application shall include: a description of the rental assistance program; the amount requested for distribution from the Fund in accordance with this section; and any other information requested by the Corporation. The applicant shall submit the application on or before the date that the Corporation specifies. The Corporation shall review each request for distribution of funds from the Fund for compliance with the provisions of this section and Corporation regulations. The Corporation shall make available not more than 25% of cumulative program funds from the Fund for rental assistance programs in a single RISE zone. If the Corporation fails to allocate the funds in the Fund under this part and rental assistance programs in a single RISE zone have previously received 25% of cumulative program funds from the Fund, the Department may distribute additional funds to applicants for that RISE zone in accordance with this part. On or before September 15 each year, a rental assistance program that has received a distribution of funds from the Fund shall submit to the Corporation an annual report in the form and containing the information required by the Corporation. The report required under paragraph (1) of this subsection shall detail the use of funds received under this section for the immediately preceding fiscal year and provide an update on any funds that were not disbursed during that fiscal year. The Corporation may not distribute funds from the Fund to a rental assistance program under this section if the rental assistance program has failed to submit the report required under paragraph (1) of this subsection. A rental assistance program that receives a distribution of funds from the Fund shall be subject to an audit at least once every 3 years by an independent certified public accountant that the applicant and the Corporation select. Based on the findings of an audit conducted under subsection (e) of this section, the Corporation may make an assessment against a qualified institution, a county, a municipal corporation, or an economic development agency to recapture any misused or undistributed funds.

There is a Regional Institution Strategic Enterprise Fund in the Corporation. The Executive Director of the Corporation shall manage and supervise the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; and any other money from any other source accepted for the benefit of the Fund. The Corporation may use the Fund to: finance, in coordination with qualified institutions, counties, and municipal corporations, the provision of rental assistance to business entities located in RISE zones; and pay the related administrative, legal, and actuarial expenses of the Corporation. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any investment earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget.

To carry out the purpose of the Program, the Corporation may award grants in accordance with this part to approved recipients carrying out infrastructure projects intended to support innovation in any of the following eligible technology sectors: advanced manufacturing; aerospace; agriculture; artificial intelligence; biotechnology; blue technology; cybersecurity; defense; energy and sustainability; life sciences; quantum; and sensor and robotics. Examples of eligible projects include: sensitive compartmented information facilities; wet laboratories; cyber ranges; prototype manufacturing centers; and other specialized workforce training, skill certification, or research–related spaces. Grant awards may be used to defray the cost a grantee incurs to acquire, construct, rehabilitate, install, improve, or equip an eligible innovation infrastructure project. A single entity may be awarded not more than $2,000,000 in grant funds in a fiscal year. For a grant award up to $1,000,000, a grantee shall provide matching funds that are at least 200% of the grant amount. For a grant award exceeding $1,000,000, and up to $2,000,000, a grantee shall provide matching funds that are at least 400% of the grant amount. Funds received by a grantee through other State grant programs are not counted toward the grantee’s matching funds requirement. A grantee must demonstrate an ability to cover the full estimated costs of the project for which the grant is awarded. Not more than 50% of the appropriation to the Fund in a fiscal year may be awarded to colleges and universities in that fiscal year. Grants to colleges and universities from the Fund must be awarded to projects that: are performed in collaboration with private industry; or offer the prospect of significant economic impact and the opportunity to develop entrepreneurship or clusters of technological innovation in the State. When providing funding from the Fund, the Corporation shall prioritize applicants located in a Regional Institution Strategic Enterprise zone that is designated under Part II of this subtitle.

There is a Build Our Future Grant Fund. The Corporation shall administer the Fund. The purpose of the Fund is to provide grants for infrastructure projects to support innovation in eligible technology sectors under this part. The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; any interest earnings of the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used to: provide grants in accordance with this part; and pay the administrative costs of the Program. During each fiscal year, the Corporation may use not more than 10% of the money appropriated to the Fund to administer the Program. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget.