<section article="gec" article_name="Economic Development" number="5-101" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>The Department shall administer the State’s economic development and growth funds to facilitate the attraction, creation, expansion, and retention of businesses and jobs in the State.</text> </level> <level label="b"> <text>The Department shall encourage local governments to develop, and assist local governments in developing, strategic plans for economic development.</text> </level> <level label="c"> <level label="1"> <text>The Department may not deny a business entity conducting a trade or a business as a medical cannabis grower, processor, or dispensary or any other cannabis establishment licensed by the State a program benefit under this title solely because the business entity is a cannabis establishment, if the business entity otherwise satisfies the requirements of the program, including any industry sector specific requirements.</text> </level> <level label="2"> <text>If, before July 1, 2023, a business entity described under paragraph (1) of this subsection was denied a program benefit under this title solely because the business entity was a cannabis establishment, the business entity may reapply for the program.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-102" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="1" subtitle_name="General Provisions"> <text>The Department shall administer the State’s economic development and financial assistance programs and funds including:</text> <level label="1"> <text>the BRAC Revitalization and Incentive Zone Program, under Subtitle 13 of this title;</text> </level> <level label="2"> <text>the Enterprise Fund, under Subtitle 6 of this title;</text> </level> <level label="3"> <text>the Enterprise Zones Program, under Subtitle 7 of this title;</text> </level> <level label="4"> <text>the Make Office Vacancies Extinct Program, under Subtitle 15 of this title;</text> </level> <level label="5"> <text>the Maryland Economic Adjustment Fund, under Subtitle 2 of this title;</text> </level> <level label="6"> <text>the Maryland Economic Development Assistance Authority and Fund, under Subtitle 3 of this title;</text> </level> <level label="7"> <text>the Maryland Industrial Development Financing Authority, under Subtitle 4 of this title;</text> </level> <level label="8"> <text>the Maryland Small Business Development Financing Authority, under Subtitle 5 of this title;</text> </level> <level label="9"> <text>the Appalachian Regional Development Program, under Title 13, Subtitle 1 of this article;</text> </level> <level label="10"> <text>jointly with the Department of Housing and Community Development, the Community Development Block Grant for Economic Development; and</text> </level> <level label="11"> <text>any other programs or funds designated by statute, the Governor, or the Secretary.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-103" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>This section applies notwithstanding any other law.</text> </level> <level label="b"> <text>Subject to subsections (d) and (e) of this section, the Secretary may transfer money among any of the accounts that are:</text> <level label="1"> <text>in the Department or subject to its control; and</text> </level> <level label="2"> <text>used to provide financial support of any kind.</text> </level> </level> <level label="c"> <text>Subject to subsections (d) and (e) of this section, the Secretary may transfer money to the Economic Development Opportunities Program Account established under § 7–314 of the State Finance and Procurement Article from any of the accounts that are:</text> <level label="1"> <text>in the Department or subject to its control; and</text> </level> <level label="2"> <text>used to provide financial support of any kind.</text> </level> </level> <level label="d"> <text>A transfer under this section from the Industrial Development Fund shall comply with § 5-432 of this title.</text> </level> <level label="e"> <text>A transfer under this section shall comply with the amendment process for appropriations established by § 7-209 of the State Finance and Procurement Article.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-104" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <text>The Secretary may:</text> <level label="1"> <text>invest in a specialized small business investment company created in accordance with the federal Small Business Investment Act of 1958; and</text> </level> <level label="2"> <text>to the extent allowed by federal law, do anything necessary or convenient to fully participate in the formation and operation of a specialized small business investment company.</text> </level> </level> <level label="b"> <text>Notwithstanding any other law, the Secretary may use money to finance a specialized small business investment company from accounts within:</text> <level label="1"> <text>the Enterprise Fund established under Subtitle 6 of this title; and</text> </level> <level label="2"> <text>the Maryland Small Business Development Financing Authority established under Subtitle 5 of this title.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-105" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="1" subtitle_name="General Provisions"> <text>When deciding whether to provide financial assistance for a business project, the Department shall consider whether the project will be located:</text> <level label="1"> <text>in an enterprise zone or a focus area as designated under Subtitle 7 of this title; or</text> </level> <level label="2"> <text>in a BRAC Revitalization and Incentive Zone as designated under Subtitle 13 of this title.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-106" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="1" subtitle_name="General Provisions"> <text>The Secretary shall designate a unit in the Department to be the single contact for issues relating to realignment and closure of military installations in the State.</text> </section> <section article="gec" article_name="Economic Development" number="5-107" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="1" subtitle_name="General Provisions"> <text>The Department may take all reasonable actions to protect the interests of the Department in its investments, collateral, loans, grants, and other property or interests relating to financing transactions, including expending funds from its general and special funds to acquire, dispose of, operate, protect, enhance, or maintain collateral or liens.</text> </section> <section article="gec" article_name="Economic Development" number="5-108" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="1" subtitle_name="General Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Extraordinary economic development opportunity” means the:</text> <level label="i"> <text>attraction of a new private sector enterprise to the State or retention or expansion of an existing private sector enterprise in the State that:</text> <level label="1"> <text>maintains a strong financial condition and minimal credit risk profile;</text> </level> <level label="2"> <text>is capable of accessing alternative sources of financing through financial institutions or capital markets;</text> </level> <level label="3"> <text>is consistent with the strategic plan of the State for economic development; and</text> </level> <level label="4"> <text>creates or retains substantial employment;</text> </level> </level> <level label="ii"> <text>retention or expansion of an existing public institution, private institution, or federal research and development institute that:</text> <level label="1"> <text>is consistent with the strategic plan of the State for economic development; and</text> </level> <level label="2"> <text>creates or retains substantial employment; or</text> </level> </level> <level label="iii"> <text>establishment or attraction of a public institution, a private institution, or a federal research and development institute new to the State that:</text> <level label="1"> <text>is consistent with the strategic plan of the State for economic development; and</text> </level> <level label="2"> <text>creates or retains substantial employment.</text> </level> </level> </level> <level label="3"> <text>“Fund” means the Strategic Closing Fund.</text> </level> <level label="4"> <level label="i"> <text>“Performance requirement” means a contractual agreement between an executive agency and a Fund recipient that requires the Fund recipient to meet minimum economic development outcomes in exchange for a grant or a loan under this section.</text> </level> <level label="ii"> <text>“Performance requirement” includes claw–back, penalty, rescission, and recalibration clauses that utilize job creation, capital investment, and other measures of economic development.</text> </level> </level> <level label="5"> <text>“Private sector enterprise” means any commercial, industrial, educational, or research organization which is not a part of or controlled by a federal, State, or local government agency.</text> </level> </level> <level label="b"> <text>Subject to the provisions of this section, the Strategic Closing Fund is established within the Department to maximize extraordinary economic development opportunities.</text> </level> <level label="c"> <text>The Governor may provide an appropriation in the budget bill to the Fund for a specific or general purpose or purposes.</text> </level> <level label="d"> <text>After notice to and approval by the Legislative Policy Committee, the Governor may transfer funds by budget amendment to the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a continuing, nonlapsing fund which is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The Treasurer shall separately hold, and the Comptroller shall account for, the Fund.</text> </level> <level label="3"> <text>The Fund shall be invested and reinvested in the same manner as other State funds.</text> </level> <level label="4"> <text>Any investment earnings shall be credited to the General Fund of the State.</text> </level> </level> <level label="f"> <level label="1"> <text>Money appropriated or credited to the Fund does not revert to the General Fund of the State.</text> </level> <level label="2"> <text>Repayments of principal or interest on any loan from the Fund shall be retained to the credit of the Fund.</text> </level> </level> <level label="g"> <level label="1"> <text>The Department shall include the following information in the report that is required under § 2.5–109 of this article:</text> <level label="i"> <text>the financial status of the program and a summary of its operations for the preceding fiscal year;</text> </level> <level label="ii"> <text>for the previous 3 fiscal years, the status of Fund disbursements for economic development projects reviewed by the Legislative Policy Committee under this section;</text> </level> <level label="iii"> <text>for the previous 3 fiscal years, the status of job creation, capital investment, and other measures of economic development for each economic development project reviewed by the Legislative Policy Committee under this section; and</text> </level> <level label="iv"> <text>an explanation if the job creation, capital investment, and other measures of economic development described in items (i) through (iii) of this paragraph are lower than negotiated according to subsection (h)(1) of this section.</text> </level> </level> <level label="2"> <text>On receipt of the information that is required to be reported under this subsection, the Legislative Policy Committee shall have 60 days to review and comment on the information provided by the Department under paragraph (1) of this subsection, during which time the Department shall provide any additional information regarding the Fund as requested by the Legislative Policy Committee.</text> </level> </level> <level label="h"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection and in subsection (i) of this section, any funds transferred from the Fund shall be used only for extraordinary economic development opportunities that:</text> <level label="i"> <text>meet the criteria provided in this section;</text> </level> <level label="ii"> <text>include performance requirements; and</text> </level> <level label="iii"> <text>in addition to the performance requirements under item (ii) of this paragraph, include a performance requirement that utilizes a claw–back provision.</text> </level> </level> <level label="2"> <text>The Department may utilize the Fund to pay for administrative, legal, or actuarial expenses incurred by the Department.</text> </level> </level> <level label="i"> <level label="1"> <text>The Legislative Policy Committee may approve an economic development opportunity that is not an extraordinary economic development opportunity if the executive agency requesting the transfer of funds offers a detailed justification for the exception.</text> </level> <level label="2"> <text>The Legislative Policy Committee shall give particular consideration to an exception that would provide a significant economic development opportunity for an area of the State that has a relatively high unemployment rate or relatively low per capita income.</text> </level> </level> <level label="j"> <level label="1"> <text>The Department may modify the guidelines for the kinds of performance requirements that may be negotiated with the loan or grant as needed, upon approval of the Legislative Policy Committee.</text> </level> <level label="2"> <text>The Department may depart from these guidelines as needed, upon approval of the Legislative Policy Committee.</text> </level> </level> <level label="k"> <text>Money from the Fund may be loaned, granted, or invested for:</text> <level label="1"> <text>assisting in the retention or expansion of existing private sector enterprises, public or private institutions, or federal research and development institutes;</text> </level> <level label="2"> <text>assisting in the establishment or attraction of private sector enterprises, public or private institutions, or federal research and development institutes new to this State; or</text> </level> <level label="3"> <text>providing assistance where existing State or local programs lack sufficient resources or are constrained by timing or program design from being utilized.</text> </level> </level> <level label="l"> <level label="1"> <text>Before funds from the Fund may be loaned, granted, or invested in accordance with subsection (k) of this section, the Department shall provide, subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee:</text> <level label="i"> <text>a detailed description of:</text> <level label="1"> <text>the proposed use of the funds;</text> </level> <level label="2"> <text>the manner in which the proposed use meets the criteria as set forth in this section;</text> </level> <level label="3"> <text>the degree to which the proposed use of funds will advance statewide or local economic development strategies and objectives; and</text> </level> <level label="4"> <text>the degree to which available sources of federal, State, local, and private financial support have been sought and will be utilized;</text> </level> </level> <level label="ii"> <text>the terms, conditions, and performance requirements of any grant or loan for which the funds are to be used;</text> </level> <level label="iii"> <text>a comprehensive economic analysis of the proposed use of the funds which estimates:</text> <level label="1"> <text>the economic impact to the State and the local jurisdictions affected;</text> </level> <level label="2"> <text>a minimum level of net economic benefits to the public sector;</text> </level> <level label="3"> <text>the number of jobs expected to be created as a result of the proposed economic development project and the percentage of those jobs that are expected to be held by Maryland residents;</text> </level> <level label="4"> <text>the wage rates and benefit packages for the jobs expected to be created as a result of the proposed economic development project; and</text> </level> <level label="5"> <text>any other appropriate financial or economic benefits;</text> </level> </level> <level label="iv"> <text>any other analysis or information that is requested by the Legislative Policy Committee; and</text> </level> <level label="v"> <text>the date on which the executive agency expects to disburse the funds to the proposed recipient.</text> </level> </level> <level label="2"> <text>The Legislative Policy Committee shall have 60 days to review the information provided under paragraph (1) of this subsection and approve the proposed use of funds before funds from the Fund may be loaned, granted, or invested in accordance with subsection (k) of this section.</text> </level> </level> <level label="m"> <text>Funds appropriated to the Fund may not be loaned, granted, or invested for:</text> <level label="1"> <text>substituting for funds from other State or local programs for which a project may be eligible and sufficient resources exist;</text> </level> <level label="2"> <text>projects which are not likely to attract or retain employment opportunities;</text> </level> <level label="3"> <text>funding projects located outside the State;</text> </level> <level label="4"> <text>construction or land acquisition by the Maryland Stadium Authority; or</text> </level> <level label="5"> <text>funding for any sports activity or facility.</text> </level> </level> <level label="n"> <text>The Department may approve changes to a transaction approved by the Legislative Policy Committee as long as the changes do not materially and adversely affect the overall position of the Department in the transaction or the economic development benefits to be derived by the State in the transaction.</text> </level> <level label="o"> <level label="1"> <level label="i"> <text>In this subsection the following words have the meanings indicated.</text> </level> <level label="ii"> <text>“Financial assistance” means a grant, loan, or investment provided under this subsection that exceeds $100,000.</text> </level> <level label="iii"> <text>“Political subdivision” includes an agency or other instrumentality of the political subdivision.</text> </level> </level> <level label="2"> <text>This subsection does not apply to financial assistance used solely for the purpose of acquiring real property or structures on real property.</text> </level> <level label="3"> <text>With respect to financial assistance under this section to a political subdivision:</text> <level label="i"> <text>if the political subdivision has a program for promoting procurement opportunities among minority businesses that is acceptable to the Department, the political subdivision shall apply the requirements of that program to the procurement of goods or services made with the proceeds from the financial assistance; but</text> </level> <level label="ii"> <text>if the political subdivision does not have a program that is acceptable to the Department under item (i) of this paragraph, the political subdivision is subject to paragraph (4) of this subsection.</text> </level> </level> <level label="4"> <level label="i"> <text>In this paragraph, “minority business enterprise” has the meaning stated in § 14–301 of the State Finance and Procurement Article.</text> </level> <level label="ii"> <text>With respect to financial assistance under this section to an entity other than a political subdivision, the entity shall agree to include in the agreement providing the financial assistance a provision acceptable to the Department that would encourage the procurement from minority business enterprises of goods or services purchased with the proceeds from the financial assistance.</text> </level> <level label="iii"> <text>In negotiating the provision required under subparagraph (ii) of this paragraph, the Department shall take into account relevant factors, including:</text> <level label="1"> <text>the intended use of the proceeds from the financial assistance; and</text> </level> <level label="2"> <text>the feasibility of obtaining the required goods or services from minority business enterprises.</text> </level> </level> </level> <level label="5"> <text>The Department may require that a recipient of financial assistance under this section submit to the Department a list, or an updated list, of the minority business enterprises from which goods or services were procured and the nature and dollar amount of the goods or services.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-201" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="2" subtitle_name="Maryland Economic Adjustment Fund"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Fund” means the Maryland Economic Adjustment Fund.</text> </level> <level label="c"> <level label="1"> <text>“Working capital” means money for current operations of a business.</text> </level> <level label="2"> <text>“Working capital” includes money for supplies, materials, labor, equipment, rent, software, marketing, insurance, and fees for professional services.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-202" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="2" subtitle_name="Maryland Economic Adjustment Fund"> <level label="a"> <text>Financial assistance from the Fund may be approved by the Secretary or the Secretary’s designee.</text> </level> <level label="b"> <text>The exercise by the Department of the powers granted under this subtitle is the performance of an essential governmental function.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-203" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="2" subtitle_name="Maryland Economic Adjustment Fund"> <level label="a"> <text>There is a Maryland Economic Adjustment Fund in the Department.</text> </level> <level label="b"> <level label="1"> <text>The Department shall administer the Fund.</text> </level> <level label="2"> <text>The Secretary may:</text> <level label="i"> <text>delegate to any unit in the Department the underwriting, closing, monitoring, and workout functions for Fund loans; or</text> </level> <level label="ii"> <text>contract with another entity to perform these functions.</text> </level> </level> </level> <level label="c"> <text>The Maryland Economic Adjustment Fund is a special, nonlapsing revolving fund that is not subject to reversion under § 7-302 of the State Finance and Procurement Article.</text> </level> <level label="d"> <level label="1"> <text>The Fund consists of:</text> <level label="i"> <text>federal money allocated or granted to the Fund, including adjustment implementation grant money designated for the Fund under the Defense Conversion and Defense Economic Adjustment Program of the Economic Development Administration of the United States Department of Commerce;</text> </level> <level label="ii"> <text>private money donated or granted to the Fund;</text> </level> <level label="iii"> <text>money appropriated by the State to the Fund;</text> </level> <level label="iv"> <text>premiums, fees, interest payments, and principal payments on loans made under this subtitle, including a loan financed by the Economic Development Opportunities Program Fund under § 7-314(f) of the State Finance and Procurement Article;</text> </level> <level label="v"> <text>proceeds from the sale, disposition, lease, or rental of collateral relating to loans under this subtitle; and</text> </level> <level label="vi"> <text>any other money made available to the Fund.</text> </level> </level> <level label="2"> <text>This subtitle does not require an appropriation to the Fund from the General Fund of the State, regardless of the availability of other funding sources for the Fund.</text> </level> </level> <level label="e"> <level label="1"> <text>The Fund shall be used to:</text> <level label="i"> <text>make loans to new or existing companies with 50 or fewer employees;</text> </level> <level label="ii"> <text>make grants to local or regional governmental or nonprofit economic development revolving loan funds in the State; and</text> </level> <level label="iii"> <text>pay all expenses and disbursements authorized by the Department for administering the Fund.</text> </level> </level> <level label="2"> <text>A loan to an eligible company under this subtitle may include:</text> <level label="i"> <text>advances of loan proceeds for loans; and</text> </level> <level label="ii"> <text>to the extent allowed by the regulations of the federal Economic Development Administration of the United States Department of Commerce, money for expenses for administrative, legal, actuarial, technical, and other services.</text> </level> </level> <level label="3"> <text>Subject to the restrictions of this subtitle, the Department may make a loan from the Fund to an applicant only if:</text> <level label="i"> <text>the applicant meets the qualifications under this subtitle; and</text> </level> <level label="ii"> <text>the applicant meets any additional requirements imposed by the source of the money to be loaned.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>The Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any investment earnings of the Fund shall be credited to the Fund.</text> </level> <level label="3"> <text>The Treasurer shall submit a report each year to the Department on:</text> <level label="i"> <text>the status of the money invested under this subtitle;</text> </level> <level label="ii"> <text>the market value of the assets in the Fund on the date of the report; and</text> </level> <level label="iii"> <text>the interest received from investments for the Fund during the reporting period.</text> </level> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-204" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="2" subtitle_name="Maryland Economic Adjustment Fund"> <text>The Department shall adopt regulations to carry out this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="5-205" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="2" subtitle_name="Maryland Economic Adjustment Fund"> <level label="a"> <text>An applicant for a loan under this subtitle shall submit to the Department an application on the form that the Department requires.</text> </level> <level label="b"> <text>The application shall include:</text> <level label="1"> <text>a detailed strategic business plan;</text> </level> <level label="2"> <text>the amount of money required for the activities described in the strategic business plan;</text> </level> <level label="3"> <text>the money available to the applicant without financial assistance from the Department;</text> </level> <level label="4"> <text>the amount of financial assistance requested from the Department;</text> </level> <level label="5"> <text>information relating to the financial status of the applicant, including, if applicable:</text> <level label="i"> <text>a current balance sheet;</text> </level> <level label="ii"> <text>a profit and loss statement; and</text> </level> <level label="iii"> <text>credit references; and</text> </level> </level> <level label="6"> <text>any other relevant information that the Department requests.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-206" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="2" subtitle_name="Maryland Economic Adjustment Fund"> <level label="a"> <text>Except as otherwise provided in this subtitle, the Department may set the terms and conditions for loans and grants made under this subtitle.</text> </level> <level label="b"> <text>The Department shall:</text> <level label="1"> <text>determine whether to approve loan requests from qualified applicants for loans under this subtitle;</text> </level> <level label="2"> <text>set the terms and conditions for loans made under this subtitle; and</text> </level> <level label="3"> <text>determine that the applicant was unable to obtain the financing necessary for the activities on affordable terms through the normal lending channels.</text> </level> </level> <level label="c"> <text>The maximum amount of a loan made with money from the Economic Development Administration of the United States Department of Commerce may not exceed the limit it sets by regulation.</text> </level> <level label="d"> <text>The proceeds of a loan may be used for working capital, equipment, furnishings, fixtures, or the construction, rehabilitation, or purchase of real property for the activities that the Department approves.</text> </level> <level label="e"> <text>The Department may authorize a flexible repayment schedule for a loan under this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-207" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="2" subtitle_name="Maryland Economic Adjustment Fund"> <level label="a"> <text>The Department shall prepare the loan documents for loans under this subtitle.</text> </level> <level label="b"> <text>The loan documents shall include:</text> <level label="1"> <text>the interest rate on the loan;</text> </level> <level label="2"> <text>the amount of the loan;</text> </level> <level label="3"> <text>repayment provisions for the loan; and</text> </level> <level label="4"> <text>any other provision that the Department determines is necessary, including a provision on taking liens and security interests in real or personal property.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-208" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="2" subtitle_name="Maryland Economic Adjustment Fund"> <level label="a"> <text>If a recipient of a loan under this subtitle violates any provision of the loan documents or ceases to meet the requirements of this subtitle, the Department may, on reasonable notice to the loan recipient:</text> <level label="1"> <text>withhold further advances of loan proceeds until the loan recipient complies with the agreement or requirements; or</text> </level> <level label="2"> <text>exercise any other remedy provided in the loan documents.</text> </level> </level> <level label="b"> <level label="1"> <text>If a loan made under this subtitle is in default, the Department 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.</text> </level> <level label="2"> <text>The Department may take title in the Department’s name to any property foreclosed and convey title to a bona fide purchaser.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-209" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="2" subtitle_name="Maryland Economic Adjustment Fund"> <level label="a"> <text>A person may not knowingly make or cause to be made a false statement or report:</text> <level label="1"> <text>in an application or document provided to the Department; or</text> </level> <level label="2"> <text>to influence Department action affecting financial assistance, whether or not the assistance already has been extended.</text> </level> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-301" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Aquaculture project” means a project that encourages innovation, expansion, and modernization of the seafood processing industry or aquaculture industry.</text> </level> <level label="c"> <text>“Arts and entertainment district” means an area designated by the Secretary as an arts and entertainment district under Title 4, Subtitle 7 of this article.</text> </level> <level label="d"> <text>“Arts and entertainment enterprise” means a for–profit or nonprofit entity that is:</text> <level label="1"> <text>located in an arts and entertainment district; and</text> </level> <level label="2"> <text>dedicated to the visual or performing arts.</text> </level> </level> <level label="e"> <text>“Arts and entertainment project” means a project that promotes or enhances the development of an arts and entertainment district.</text> </level> <level label="f"> <level label="1"> <text>“Associated development and carrying costs” means costs that are associated with the acquisition and maintenance of an asset.</text> </level> <level label="2"> <text>“Associated development and carrying costs” includes:</text> <level label="i"> <text>settlement costs;</text> </level> <level label="ii"> <text>insurance;</text> </level> <level label="iii"> <text>interest;</text> </level> <level label="iv"> <text>taxes;</text> </level> <level label="v"> <text>government fees;</text> </level> <level label="vi"> <text>utilities; and</text> </level> <level label="vii"> <text>the costs of managing and securing the asset.</text> </level> </level> </level> <level label="g"> <text>“Authority” means the Maryland Economic Development Assistance Authority.</text> </level> <level label="h"> <text>“Brownfields Revitalization Incentive Program” means the program in the Department that provides financial assistance from the Fund for the redevelopment of qualified brownfields sites, as provided in Part VI of this subtitle.</text> </level> <level label="i"> <level label="1"> <text>“Brownfields site” means a property that:</text> <level label="i"> <text>is located in a county or municipal corporation that elects to participate in the Brownfields Revitalization Incentive Program in accordance with § 5–336 of this subtitle; and</text> </level> <level label="ii"> <text>is:</text> <level label="1"> <text>an eligible property, as defined in § 7–501 of the Environment Article, that is owned or operated by an inculpable person, as defined in § 7–501 of the Environment Article; or</text> </level> <level label="2"> <text>a property where there is a release, discharge, or threatened release of oil, as defined in § 4–401 of the Environment Article, that is subject to Title 4 of the Environment Article.</text> </level> </level> </level> <level label="2"> <text>“Brownfields site” does not include property that is owned or operated by:</text> <level label="i"> <text>a responsible person as defined in § 7–201 of the Environment Article; or</text> </level> <level label="ii"> <text>a person responsible for the discharge, as defined in § 4–401 of the Environment Article.</text> </level> </level> </level> <level label="j"> <text>“Child care facility” means a facility that is required to be licensed as a child care center under Title 9.5, Subtitle 4 of the Education Article.</text> </level> <level label="k"> <text>“Child care special loan” means a direct loan to expand or improve child care services at a child care facility, as provided in Part VII of this subtitle.</text> </level> <level label="l"> <text>“Corporation” means the Maryland Economic Development Corporation.</text> </level> <level label="m"> <text>“Financial assistance” means a grant, loan, or investment provided under this subtitle.</text> </level> <level label="n"> <text>“Fund” means the Maryland Economic Development Assistance Fund.</text> </level> <level label="o"> <text>“Local economic development fund” means a revolving, nonlapsing fund that one or more local governments establish for economic development in the areas under their jurisdiction.</text> </level> <level label="p"> <text>“Local economic development opportunity” means a project that:</text> <level label="1"> <text>is determined by the Department or Authority to provide a valuable economic development opportunity to the jurisdiction in which the project is located; and</text> </level> <level label="2"> <text>is a priority for and endorsed by the governing body of that jurisdiction.</text> </level> </level> <level label="q"> <text>“Local government” means:</text> <level label="1"> <text>a county;</text> </level> <level label="2"> <text>a municipal corporation;</text> </level> <level label="3"> <text>a designated agency or instrumentality of a county; or</text> </level> <level label="4"> <text>a designated agency or instrumentality of a municipal corporation.</text> </level> </level> <level label="r"> <text>“Qualified brownfields site” means a brownfields site that is determined by the Department to be eligible for financial assistance under this subtitle.</text> </level> <level label="s"> <text>“Responsible person” has the meaning stated in § 7–201 of the Environment Article.</text> </level> <level label="t"> <text>“Significant strategic economic development opportunity” means a project that is determined by the Department or Authority to provide a valuable economic development opportunity of statewide, regional, or strategic industry impact.</text> </level> <level label="u"> <text>“Specialized economic development opportunity” means:</text> <level label="1"> <text>an aquaculture project;</text> </level> <level label="2"> <text>an arts and entertainment enterprise;</text> </level> <level label="3"> <text>an arts and entertainment project;</text> </level> <level label="4"> <text>the redevelopment of a qualified brownfields site; or</text> </level> <level label="5"> <text>a project to create or expand a child care facility.</text> </level> </level> <level label="v"> <text>“Tier I county project” means a project that a local government or the Corporation carries out in a Tier I county.</text> </level> <level label="w"> <text>“Working capital” means money to be used for current operations of a business.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-302" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>Assistance for a Tier I county project is available to a Tier I county under this subtitle only if:</text> <level label="1"> <text>the county has developed a local strategic plan for economic development in consultation with the municipal corporations located in the county, if any;</text> </level> <level label="2"> <text>the county has submitted the plan to the Secretary for approval; and</text> </level> <level label="3"> <text>the Secretary has approved the plan.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-305" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>There is a Maryland Economic Development Assistance Authority in the Department.</text> </section> <section article="gec" article_name="Economic Development" number="5-306" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>The Authority consists of the individuals serving as members of the Maryland Industrial Development Financing Authority under § 5-406 of this title.</text> </level> <level label="b"> <text>The members of the Authority shall be appointed in accordance with § 5-407 of this title.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-307" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>The members of the Authority may act concurrently in their capacities as members of the Authority and of the Maryland Industrial Development Financing Authority.</text> </level> <level label="b"> <text>The members of the Authority shall carry out the powers and duties of the Authority under this subtitle whether acting:</text> <level label="1"> <text>concurrently as members of the Authority and the Maryland Industrial Development Financing Authority; or</text> </level> <level label="2"> <text>as members of either authority alone.</text> </level> </level> <level label="c"> <text>The members of the Authority shall conduct the business of the Authority and of the Maryland Industrial Development Financing Authority under Subtitle 4 of this title.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-310" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>There is a Maryland Economic Development Assistance Fund in the Department.</text> </section> <section article="gec" article_name="Economic Development" number="5-311" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>The purposes of the Fund are to:</text> <level label="1"> <text>expand employment opportunities in the State by providing financial assistance to businesses that are engaged in eligible industry sectors, including financial assistance for:</text> <level label="i"> <text>aquaculture projects;</text> </level> <level label="ii"> <text>arts and entertainment enterprises;</text> </level> <level label="iii"> <text>arts and entertainment projects; and</text> </level> <level label="iv"> <text>creation and expansion of child care facilities;</text> </level> </level> <level label="2"> <text>provide financial assistance for the redevelopment of qualified brownfields sites;</text> </level> <level label="3"> <text>provide financial assistance to local governments and the Corporation for economic development projects; and</text> </level> <level label="4"> <text>provide grants to local economic development funds.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-312" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>The Secretary shall administer the Fund.</text> </level> <level label="b"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The Treasurer shall hold the Fund separately and the Comptroller shall account for the Fund.</text> </level> </level> <level label="c"> <text>Any investment earnings of the Fund shall be credited to the Fund.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-313" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>money made available to the Fund through federal programs or private contributions;</text> </level> <level label="3"> <text>repayments of principal and interest from loans made from the Fund;</text> </level> <level label="4"> <text>proceeds from the sale, disposition, lease, or rental of collateral related to financial assistance provided by the Department under this subtitle;</text> </level> <level label="5"> <text>application or other fees paid to the Fund to process requests for financial assistance;</text> </level> <level label="6"> <text>recovery of an investment made by the Department in a business, including an arrangement under which part of the investment is recovered through:</text> <level label="i"> <text>a requirement that the Department receive a proportion of cash flow, commissions, royalties, or license fees;</text> </level> <level label="ii"> <text>the repurchase from the Department of any of its investment interest; or</text> </level> <level label="iii"> <text>the sale of an appreciated asset;</text> </level> </level> <level label="7"> <text>repayments received from recipients of conditional grants from the Department;</text> </level> <level label="8"> <text>money collected under § 9–229 of the Tax – Property Article;</text> </level> <level label="9"> <text>repayments on or recoveries from financial assistance provided from the former:</text> <level label="i"> <text>Brownfields Revitalization Incentive Fund;</text> </level> <level label="ii"> <text>Child Care Facilities Direct Loan Fund;</text> </level> <level label="iii"> <text>Child Care Special Loan Fund;</text> </level> <level label="iv"> <text>Maryland Industrial and Commercial Redevelopment Fund;</text> </level> <level label="v"> <text>Maryland Industrial Land Fund;</text> </level> <level label="vi"> <text>Maryland Seafood and Aquaculture Loan Fund; and</text> </level> <level label="vii"> <text>Smart Growth Economic Development Infrastructure Fund; and</text> </level> </level> <level label="10"> <text>any other money made available to the Fund.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-314" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>The Department may use money in the Fund to:</text> <level label="1"> <text>provide financial assistance to eligible applicants; and</text> </level> <level label="2"> <text>pay expenses for administrative, actuarial, legal, and technical services for the Fund.</text> </level> </level> <level label="b"> <text>The Department periodically shall review its portfolio in an effort to ensure:</text> <level label="1"> <text>the equitable distribution among the counties of money from the Fund;</text> </level> <level label="2"> <text>adequate funding for Tier I county projects; and</text> </level> <level label="3"> <text>that no particular Tier I county benefits disproportionately from financial assistance to Tier I counties under this subtitle.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-315" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>In accordance with § 2.5–109 of this article, the Department shall report on the number, amount, use, and economic benefits of financial assistance provided under this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="5-316" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>Financial assistance is deemed authorized under this subtitle if it was provided, or approved to be provided, from the following programs that have been incorporated into the Fund:</text> <level label="1"> <text>the Brownfields Revitalization Incentive Fund;</text> </level> <level label="2"> <text>the Child Care Facilities Direct Loan Fund;</text> </level> <level label="3"> <text>the Child Care Special Loan Fund;</text> </level> <level label="4"> <text>the Maryland Industrial and Commercial Redevelopment Fund;</text> </level> <level label="5"> <text>the Maryland Industrial Land Act;</text> </level> <level label="6"> <text>the Maryland Seafood and Aquaculture Loan Fund; and</text> </level> <level label="7"> <text>the Smart Growth Economic Development Infrastructure Fund.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-319" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <level label="1"> <text>Financial assistance from the Fund not exceeding $5,000,000 may be approved by the Secretary.</text> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection, financial assistance from the Fund exceeding $5,000,000 requires approval by the Authority.</text> </level> <level label="3"> <text>For a Tier I county project, the Secretary may approve financial assistance exceeding $5,000,000.</text> </level> </level> <level label="b"> <text>Except as provided in subsection (a)(3) of this section, with respect to requests for financial assistance exceeding $5,000,000:</text> <level label="1"> <text>the Department shall evaluate the requests; and</text> </level> <level label="2"> <text>the Authority shall:</text> <level label="i"> <text>evaluate the requests that have first been evaluated by the Department;</text> </level> <level label="ii"> <text>determine whether to approve the requests; and</text> </level> <level label="iii"> <text>set the terms and conditions of the financial assistance.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, financial assistance provided to a local government or the Corporation for a project shall be approved by a letter from or formal resolution of:</text> <level label="i"> <text>the governing body of the jurisdiction in which the project is located; or</text> </level> <level label="ii"> <text>if the recipient of the financial assistance is the Corporation, its board of directors.</text> </level> </level> <level label="2"> <text>If the recipient of financial assistance is the Corporation for a Tier I county project, the financial assistance shall be approved by letters from or formal resolutions of both the board of directors of the Corporation and the governing body of the jurisdiction in which the project is located.</text> </level> <level label="3"> <text>A project that is funded by a grant from the Fund to a local government or the Corporation, and carried out by the local government or the Corporation, shall be consistent with the strategy or plan for economic development of the county or municipal corporation in which the project is located.</text> </level> <level label="4"> <text>If the Department provides financial assistance to a local government for a project, an interest in that project is later transferred to a third party, and the transfer of the interest is financed by the local government:</text> <level label="i"> <text>the local government may assign the financing documents to the Department as a repayment of or return on the Department’s financial assistance to the local government; and</text> </level> <level label="ii"> <text>the assignment may not be considered a new financing under this subtitle.</text> </level> </level> </level> <level label="d"> <text>For a local economic development opportunity, the local government of the jurisdiction in which the project is located shall provide:</text> <level label="1"> <text>a letter from or formal resolution of the governing body of the jurisdiction in which the project is located that endorses the financial assistance to be provided from the Fund; and</text> </level> <level label="2"> <text>as determined by the Department or Authority to evidence the support of the local government for the project:</text> <level label="i"> <text>a guarantee, secured by the full faith and credit of the county or municipal corporation in which the project is located, of all or part of the financial assistance to be provided by the Fund;</text> </level> <level label="ii"> <text>the financing of part of the costs of the project; or</text> </level> <level label="iii"> <text>both.</text> </level> </level> </level> <level label="e"> <text>A letter submitted under this section shall include the signatures of a majority of the members of the governing body.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-320" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>To be eligible for financial assistance from the Fund, an applicant shall be:</text> <level label="1"> <text>a local economic development fund that meets the criteria set forth in Part V of this subtitle; or</text> </level> <level label="2"> <text>an individual, private business, nonprofit entity, or local government, or the Corporation that intends to use the requested financial assistance for a project that:</text> <level label="i"> <text>except as provided in subsection (b) of this section, is in an eligible industry sector under § 5–321 of this subtitle; and</text> </level> <level label="ii"> <text>has a strong potential for expanding or retaining employment opportunities in the State.</text> </level> </level> </level> <level label="b"> <text>A project need not be in an eligible industry sector if the applicant:</text> <level label="1"> <text>is located in a Tier I county; or</text> </level> <level label="2"> <level label="i"> <text>is a local government or the Corporation; and</text> </level> <level label="ii"> <text>does not intend to use the financial assistance to carry out a project that benefits a particular private sector entity.</text> </level> </level> </level> <level label="c"> <text>In form and content acceptable to the Department, an applicant for financial assistance from the Fund shall submit to the Department an application that contains:</text> <level label="1"> <text>the information that the Department or Authority considers necessary to evaluate the request for financial assistance; and</text> </level> <level label="2"> <text>for a Tier I county project:</text> <level label="i"> <text>a marketing plan designed to market the project to prospective businesses;</text> </level> <level label="ii"> <text>a statement of planned marketing expenditures as a percent of the total financial assistance amount requested; and</text> </level> <level label="iii"> <text>a plan for the project that is consistent with the county’s local strategic economic development plan as to the location and type of project.</text> </level> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-321" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <level label="1"> <text>After consulting with the Department and the Maryland Department of Labor, each year the Maryland Economic Development Commission shall:</text> <level label="i"> <text>evaluate the potential employment and economic growth of Maryland’s industry sectors; and</text> </level> <level label="ii"> <text>recommend eligible industry sectors to the Authority.</text> </level> </level> <level label="2"> <text>Each year the Authority shall:</text> <level label="i"> <text>consider the recommendation of the Maryland Economic Development Commission; and</text> </level> <level label="ii"> <text>establish a list of industry sectors that will be eligible for financial assistance from the Fund.</text> </level> </level> <level label="3"> <text>In determining whether an applicant is engaged in an eligible industry sector, the Department shall consider the definitions set forth in the North American Industry Classification System.</text> </level> </level> <level label="b"> <level label="1"> <text>For the purpose of providing financial assistance under this subtitle, the following are deemed to be in eligible industry sectors:</text> <level label="i"> <text>aquaculture projects;</text> </level> <level label="ii"> <text>arts and entertainment enterprises;</text> </level> <level label="iii"> <text>arts and entertainment projects;</text> </level> <level label="iv"> <text>redevelopment of qualified brownfields sites;</text> </level> <level label="v"> <text>creation or expansion of child care facilities;</text> </level> <level label="vi"> <text>projects in areas that are declared to be federal disaster areas within 1 year before the Department receives an application for financial assistance under this subtitle; and</text> </level> <level label="vii"> <text>feasibility studies.</text> </level> </level> <level label="2"> <text>The requirements specifically imposed on significant strategic economic development opportunities and local economic development opportunities under this subtitle do not apply to the items listed in paragraph (1) of this subsection.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-322" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>Financial assistance from the Fund may be used only to finance costs incurred for:</text> <level label="1"> <text>construction or acquisition of a building or real property, and associated development and carrying costs;</text> </level> <level label="2"> <text>construction, acquisition, or installation of equipment, furnishings, fixtures, leasehold improvements, site improvements, or infrastructure improvements, including rail line enhancements on or to the site of an economic development project, and associated development and carrying costs;</text> </level> <level label="3"> <text>working capital for significant strategic economic development opportunities, arts and entertainment enterprises, or arts and entertainment projects;</text> </level> <level label="4"> <text>redevelopment of qualified brownfields sites;</text> </level> <level label="5"> <text>subject to § 5-325(b)(3) of this subtitle, construction, purchase, or renovation of real property, fixtures, or equipment related to a child care facility;</text> </level> <level label="6"> <text>if supported by a resolution adopted by the governing body of the jurisdiction in which a project may be located, feasibility studies;</text> </level> <level label="7"> <text>subject to § 5-325(b)(4) of this subtitle, preparation of a county’s or municipal corporation’s strategy or plan for economic development; and</text> </level> <level label="8"> <text>a project intended to assist businesses in areas that are declared to be federal disaster areas, but only if the Department receives an application for financial assistance within 1 year after the declaration of the federal disaster area.</text> </level> </level> <level label="b"> <text>Financial assistance from the Fund may not be used to refinance existing debt.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-323" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>Financial assistance from the Fund may not exceed the lesser of:</text> <level label="1"> <text>$10,000,000; or</text> </level> <level label="2"> <text>20% of the Fund balance.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-324" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>Each subsection of this section is subject to § 5–323 of this subtitle.</text> </level> <level label="b"> <text>If the Department or Authority determines a project to be a significant strategic economic development opportunity, the Department or Authority may provide a loan from the Fund for the project to an individual, private business, nonprofit entity, or the Corporation in an amount not exceeding $10,000,000.</text> </level> <level label="c"> <text>If the Department or Authority determines a project to be a local economic development opportunity, the Department or Authority may provide financial assistance from the Fund for the project to an individual, private business, nonprofit entity, or the Corporation in an amount not exceeding:</text> <level label="1"> <text>$7,500,000 for a loan or investment; and</text> </level> <level label="2"> <text>$5,000,000 for a grant.</text> </level> </level> <level label="d"> <level label="1"> <text>Financial assistance provided to a local government or the Corporation to finance a project may be:</text> <level label="i"> <text>in the form of a grant, loan, or investment; and</text> </level> <level label="ii"> <text>except as provided in paragraph (2) of this subsection, in an amount not exceeding $5,000,000.</text> </level> </level> <level label="2"> <text>Financial assistance for a Tier I county project may be in an amount determined by the Department.</text> </level> <level label="3"> <text>A grant to a local economic development fund is subject to the requirements of Part V of this subtitle.</text> </level> </level> <level label="e"> <text>Financial assistance for a specialized economic development opportunity may be:</text> <level label="1"> <text>provided to an individual, private business, nonprofit entity, or local government, or the Corporation;</text> </level> <level label="2"> <text>in the form of a grant, loan, or investment; and</text> </level> <level label="3"> <text>in an amount determined by the Department or Authority.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-325" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>Subject to the restrictions of this subtitle, the Department or Authority may impose the terms and conditions on financial assistance from the Fund as either considers appropriate.</text> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2), (3), or (4) of this subsection, financial assistance from the Fund may not exceed 70% of the total costs of the project being financed.</text> </level> <level label="2"> <text>Financial assistance from the Fund may constitute 100% of the total costs of the project being financed if:</text> <level label="i"> <text>the recipient is the Corporation; or</text> </level> <level label="ii"> <text>the financial assistance is for:</text> <level label="1"> <text>an arts and entertainment enterprise;</text> </level> <level label="2"> <text>an arts and entertainment project; or</text> </level> <level label="3"> <text>a Tier I county project.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, financial assistance from the Fund:</text> <level label="1"> <text>may be used to finance up to 50% of the costs of construction, purchase, or renovation of real property, fixtures, or equipment related to a child care facility; but</text> </level> <level label="2"> <text>may not be used for working capital, supplies, or inventory related to a child care facility.</text> </level> </level> <level label="ii"> <text>Financial assistance from the Fund may be used to finance up to 20% of the costs described in subparagraph (i) of this paragraph incurred by a business that has received or will receive a day care loan insured by the Maryland Industrial Development Financing Authority.</text> </level> </level> <level label="4"> <text>Financial assistance for preparation of a strategy or plan for economic development of a county or municipal corporation may not exceed:</text> <level label="i"> <text>50% of the costs of preparation; or</text> </level> <level label="ii"> <text>$50,000 in a 3–year period.</text> </level> </level> </level> <level label="c"> <text>The Department or the Authority shall determine whether a loan from the Fund shall bear interest and, if so, the interest rate.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-326" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>In this section, “minority business enterprise” has the meaning stated in § 14-301 of the State Finance and Procurement Article.</text> </level> <level label="b"> <level label="1"> <text>This section applies to financial assistance that exceeds $100,000.</text> </level> <level label="2"> <text>This section does not apply to financial assistance that is used solely to acquire real property or structures on real property.</text> </level> </level> <level label="c"> <level label="1"> <text>If a local government that receives financial assistance has a program for promoting procurement opportunities among minority businesses that is acceptable to the Department, the local government shall apply the requirements of that program to procurement made with the proceeds of financial assistance.</text> </level> <level label="2"> <text>If the local government does not have a program that is acceptable to the Department under paragraph (1) of this subsection, the local government is subject to subsection (d) of this section.</text> </level> </level> <level label="d"> <level label="1"> <text>An entity other than a local government, or a local government in accordance with subsection (c)(2) of this section, that receives financial assistance shall agree to include in the agreement providing the financial assistance a provision acceptable to the Department that would encourage the procurement from minority business enterprises of goods or services purchased with the proceeds from the financial assistance.</text> </level> <level label="2"> <text>In negotiating the provision required under paragraph (1) of this subsection, the Department shall take into account relevant factors, including:</text> <level label="i"> <text>the intended use of the proceeds from the financial assistance; and</text> </level> <level label="ii"> <text>the feasibility of obtaining the required goods or services from minority business enterprises.</text> </level> </level> </level> <level label="e"> <text>The Department may require a recipient of financial assistance to submit to the Department a list, or an updated list, of the minority business enterprises from which goods or services were procured and the nature and cost of the goods or services.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-329" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>A local government may apply to the Department for a grant from the Fund to a local economic development fund.</text> </level> <level label="b"> <text>In determining whether to approve a grant to a local economic development fund, the Department or Authority shall consider and determine:</text> <level label="1"> <text>the average rate of unemployment for the local jurisdiction in comparison to the average rate of unemployment for the State;</text> </level> <level label="2"> <text>whether the local government currently administers a local economic development fund;</text> </level> <level label="3"> <text>the ability of the local government to leverage private money;</text> </level> <level label="4"> <text>the level of financial commitment provided by the local government; and</text> </level> <level label="5"> <text>any other factors that the Department or Authority considers relevant.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-330" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>Except as provided in subsection (b) of this section, to qualify for a grant from the Fund, a local government shall provide at least an equal and matching grant of money to the local economic development fund.</text> </level> <level label="b"> <text>A local government that is, or is located in, a Tier I county may qualify for a grant from the Fund by providing a grant to the local economic development fund in an amount equal to at least 50% of the grant from the Fund.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-331" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>During each fiscal year the Department may not grant more than $2,000,000 under this part.</text> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, during each fiscal year a county may not receive more than $250,000 under this part.</text> </level> <level label="2"> <text>For purposes of the limitation under paragraph (1) of this subsection:</text> <level label="i"> <text>any money received under this part by a municipal corporation or designated agency or instrumentality is deemed to be money granted to the county within which the municipal corporation, agency, or instrumentality is located; and</text> </level> <level label="ii"> <text>if more than one county administers or capitalizes a local economic development fund, each county may receive the maximum authorized for a county.</text> </level> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-332" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>A local government shall use a grant under this part:</text> <level label="1"> <text>to provide loans or loan guarantees, or to subsidize the interest rate on loans, for financing economic development projects; or</text> </level> <level label="2"> <text>to provide loans to small businesses.</text> </level> </level> <level label="b"> <text>The Department may require that money from a grant under this part be returned to the Department if the local economic development fund is inactive for more than 2 years after the grant is made.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-335" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>There is a Brownfields Revitalization Incentive Program in the Department.</text> </level> <level label="b"> <text>The Department shall develop a program of financial assistance, including low-interest loans and grants, to assist persons who participate in the Brownfields Revitalization Incentive Program.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-336" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>A county or municipal corporation may elect to participate in the Brownfields Revitalization Incentive Program by:</text> <level label="1"> <level label="i"> <text>submitting to the Department a list of potential brownfields sites in the county or municipal corporation, ranked in the order of priority for redevelopment that the county or municipal corporation recommends; and</text> </level> <level label="ii"> <text>updating each year the list submitted under item (i) of this item; or</text> </level> </level> <level label="2"> <level label="i"> <text>enacting legislation granting property tax credits in accordance with § 9-229 of the Tax - Property Article; and</text> </level> <level label="ii"> <text>notifying the Department of the legislation.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-337" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>Notwithstanding any other provision of law, the Department may provide to a person, including a responsible person, a low-interest loan or grant to conduct the environmental site assessment of a potential brownfields site that is required to participate in the Voluntary Cleanup Program under Title 7, Subtitle 5 of the Environment Article, if the person:</text> <level label="1"> <text>has not already applied to participate in the Program;</text> </level> <level label="2"> <text>is otherwise eligible to participate in the Program; and</text> </level> <level label="3"> <text>meets the eligibility requirements that the Department sets.</text> </level> </level> <level label="b"> <text>The information contained in an environmental site assessment is:</text> <level label="1"> <text>the property of the State, if the assessment is financed wholly or partly by:</text> <level label="i"> <text>a grant from the Department; or</text> </level> <level label="ii"> <text>a loan that is in payment default; or</text> </level> </level> <level label="2"> <text>the property of the person who contracted for the assessment, if the assessment is financed by:</text> <level label="i"> <text>a loan from the Department; or</text> </level> <level label="ii"> <text>a grant that is repaid.</text> </level> </level> </level> <level label="c"> <text>Eligibility for a loan or grant for an environmental site assessment under this section does not constitute eligibility for:</text> <level label="1"> <text>any other financial assistance under this subtitle; or</text> </level> <level label="2"> <text>the tax credits provided under § 9-229 of the Tax - Property Article.</text> </level> </level> <level label="d"> <text>The recipient of a grant under this section shall repay the grant if, within 12 months after receiving the grant, the recipient does not receive approval from the Department of the Environment to:</text> <level label="1"> <text>participate in the Voluntary Cleanup Program; or</text> </level> <level label="2"> <text>implement a corrective action plan under Title 4 of the Environment Article.</text> </level> </level> <level label="e"> <text>A low-interest loan provided under this section shall convert to a market rate loan if, within 12 months after receiving the loan, the recipient does not receive approval from the Department of the Environment to:</text> <level label="1"> <text>participate in the Voluntary Cleanup Program; or</text> </level> <level label="2"> <text>implement a corrective action plan under Title 4 of the Environment Article.</text> </level> </level> <level label="f"> <text>The Department may establish procedures and eligibility requirements for the approval of requests for loans and grants under this section.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-338" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>The Department shall determine whether a brownfields site is a qualified brownfields site based on whether the property:</text> <level label="1"> <text>is located in a densely populated urban center and is substantially underutilized; or</text> </level> <level label="2"> <text>is an existing or former industrial or commercial site that poses a threat to public health or the environment.</text> </level> </level> <level label="b"> <text>When reviewing qualified brownfields sites for financial assistance under this part, the Department may consider:</text> <level label="1"> <text>the feasibility of redevelopment;</text> </level> <level label="2"> <text>the public benefit to the community and the State through the redevelopment of the property;</text> </level> <level label="3"> <text>the extent of releases or threatened releases at the brownfields site and the degree to which the cleanup and redevelopment of the brownfields site will protect public health or the environment;</text> </level> <level label="4"> <text>the potential to attract or retain manufacturing or other economically significant employers;</text> </level> <level label="5"> <text>the absence of identifiable and financially solvent responsible persons; or</text> </level> <level label="6"> <text>any other factor relevant and appropriate to economic development.</text> </level> </level> <level label="c"> <text>A person may submit a request to the Department to determine whether the person qualifies for financial assistance for the potential redevelopment of a brownfields site when the person:</text> <level label="1"> <text>applies to participate in the Voluntary Cleanup Program under Title 7, Subtitle 5 of the Environment Article; or</text> </level> <level label="2"> <text>receives approval from the Department of the Environment to implement a corrective action plan under Title 4 of the Environment Article.</text> </level> </level> <level label="d"> <level label="1"> <text>The Department shall notify the person whether the person qualifies for financial assistance for the redevelopment of a brownfields site within 30 days after the Department receives a request under subsection (c) of this section if:</text> <level label="i"> <text>the Department of the Environment approves the participation in the Voluntary Cleanup Plan or a corrective action plan; and</text> </level> <level label="ii"> <text>the Department or Authority approves the financial assistance.</text> </level> </level> <level label="2"> <text>The notice shall specify which of the criteria in subsection (b) of this section that the person meets.</text> </level> </level> <level label="e"> <text>When evaluating potential qualified brownfields sites, the Department shall consult with:</text> <level label="1"> <text>the Department of the Environment, the Department of Planning, and relevant local officials;</text> </level> <level label="2"> <text>the neighboring community and any citizens groups located in the community;</text> </level> <level label="3"> <text>representatives of State and local environmental organizations;</text> </level> <level label="4"> <text>public health experts; and</text> </level> <level label="5"> <text>any other person the Department considers appropriate.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-339" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>This part does not affect:</text> <level label="1"> <text>the planning and zoning authority of a county or municipal corporation; or</text> </level> <level label="2"> <text>any provision of the Environment Article.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-342" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>In addition to providing money from the Fund to assist in creating and expanding child care facilities in the State under other provisions of this subtitle, the Department may use federal or other money provided for the purpose to make child care special loans.</text> </level> <level label="b"> <text>Child care special loans may be made to finance the expansion or improvement of child care services at child care facilities in the State, in accordance with this part.</text> </level> <level label="c"> <text>All money received by the Fund for making child care special loans shall be accounted for separately, including:</text> <level label="1"> <text>federal money allocated or granted for child care special loans, including child care and development block grant money;</text> </level> <level label="2"> <text>private money donated or granted to the Fund for child care special loans;</text> </level> <level label="3"> <text>premiums, fees, interest payments, and principal payments on child care special loans made with federal money;</text> </level> <level label="4"> <text>proceeds from the sale, disposition, or lease of collateral that relates to child care special loans;</text> </level> <level label="5"> <text>any other money made available for child care special loans; and</text> </level> <level label="6"> <text>any federal money for child care special loans that are used by the Department to pay costs of administering the child care special loans.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-343" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>In making child care special loans, the Department shall consider:</text> <level label="1"> <text>community need;</text> </level> <level label="2"> <text>community income, with priority given to those communities with the lowest median family income;</text> </level> <level label="3"> <text>care for children with teenage parents in school or training;</text> </level> <level label="4"> <text>care for children with special needs; and</text> </level> <level label="5"> <text>infant care.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-344" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>An applicant for a child care special loan shall submit to the Department an application that contains the information that the Department requires.</text> </level> <level label="b"> <text>The application shall include:</text> <level label="1"> <text>a detailed description of the proposed or existing child care facility;</text> </level> <level label="2"> <text>an itemization of known and estimated costs;</text> </level> <level label="3"> <text>the total amount of money required to expand or improve child care services at the child care facility;</text> </level> <level label="4"> <text>the money available to the applicant without a child care special loan from the Department;</text> </level> <level label="5"> <text>the amount of money sought from the Department;</text> </level> <level label="6"> <text>evidence of the inability of the applicant to obtain the financing necessary for the child care facility on affordable terms through normal lending channels;</text> </level> <level label="7"> <text>information that relates to the financial status of the applicant, including, if applicable:</text> <level label="i"> <text>a current balance sheet;</text> </level> <level label="ii"> <text>a profit and loss statement; and</text> </level> <level label="iii"> <text>credit references; and</text> </level> </level> <level label="8"> <text>a lease, option to buy, deed, or evidence that the applicant is legally entitled to remain at the child care facility for at least the term of the loan.</text> </level> </level> <level label="c"> <text>The applicant for a child care special loan shall agree to:</text> <level label="1"> <text>operate the child care facility for at least the term of the child care special loan; and</text> </level> <level label="2"> <text>repay the outstanding child care special loan in full on the loss of license, termination of lease, or transfer, sale, or refinancing of the child care facility, as applicable, before the end of the term of the child care special loan.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-345" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <text>The Department may make a child care special loan to an applicant if:</text> <level label="1"> <text>the applicant meets the qualifications required by this part;</text> </level> <level label="2"> <text>the applicant meets any additional requirements imposed by the source of the money to be loaned; and</text> </level> <level label="3"> <text>the child care special loan will be used for an authorized use under § 5-348 of this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-346" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>Except as provided in this part, the Department may set the terms and conditions for child care special loans.</text> </level> <level label="b"> <text>The term of a child care special loan may not exceed 10 years.</text> </level> <level label="c"> <level label="1"> <text>The minimum amount of a child care special loan is $1,000.</text> </level> <level label="2"> <text>The maximum amount of a child care special loan is $10,000.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-347" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>If the Department makes a child care special loan to an applicant, the Department shall prepare loan documents.</text> </level> <level label="b"> <text>The loan documents shall include:</text> <level label="1"> <text>the rate of interest on the child care special loan;</text> </level> <level label="2"> <text>the amount of the child care special loan;</text> </level> <level label="3"> <text>a requirement that before each disbursement of loan proceeds is released to the applicant, the applicant and the Department cosign the request for the money;</text> </level> <level label="4"> <text>provisions for repayment of the child care special loan; and</text> </level> <level label="5"> <text>any other provisions that the Department determines are necessary, including provisions to take liens and security interests in real and personal property.</text> </level> </level> <level label="c"> <text>The child care special loan documents may provide for penalties for an applicant who fails to operate the child care facility for the entire term of the child care special loan.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-348" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>The proceeds of a child care special loan may be used:</text> <level label="1"> <text>to assist the applicant in meeting applicable State and local child care standards;</text> </level> <level label="2"> <text>to pay for minor renovations, and to upgrade child care facilities, to ensure that applicants meet State and local child care standards; or</text> </level> <level label="3"> <text>to purchase and install equipment and furniture, including equipment needed to accommodate children with special needs.</text> </level> </level> <level label="b"> <text>Except as provided in subsection (a) of this section, the proceeds of a child care special loan may not be used:</text> <level label="1"> <text>to purchase or improve land; or</text> </level> <level label="2"> <text>to purchase, construct, or improve a building or facility.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-349" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="3" subtitle_name="Maryland Economic Development Assistance Authority and Fund"> <level label="a"> <text>A mortgage or deed of trust held as security for a child care special loan made under this part that is in default may be foreclosed by the Department in the same manner as the Maryland Rules provide for foreclosures in private transactions.</text> </level> <level label="b"> <text>The Department may take title in its name to any property foreclosed under this section as well as to convey title to that property to a bona fide purchaser of the property.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-401" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authority” means the Maryland Industrial Development Financing Authority.</text> </level> <level label="c"> <level label="1"> <text>“Authorized purpose obligation” means an evidence of obligation issued, offered for sale, or delivered by any person or public body for any purpose that the Authority determines will accomplish the purposes of this subtitle.</text> </level> <level label="2"> <text>“Authorized purpose obligation” includes:</text> <level label="i"> <text>a bond;</text> </level> <level label="ii"> <text>a note;</text> </level> <level label="iii"> <text>a certificate; and</text> </level> <level label="iv"> <text>any other evidence of obligation.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>“Bond” means a bond or note that is issued and sold by a public body, unit, or instrumentality of the State to finance a facility or refund an outstanding bond.</text> </level> <level label="2"> <text>“Bond” includes:</text> <level label="i"> <text>a bond anticipation note;</text> </level> <level label="ii"> <text>a note in the nature of commercial paper or other instrument;</text> </level> <level label="iii"> <text>a certificate;</text> </level> <level label="iv"> <text>a bond issued under this subtitle or Title 12, Subtitle 1 of this article (Maryland Economic Development Revenue Bond Act); and</text> </level> <level label="v"> <text>any other evidence of obligation.</text> </level> </level> </level> <level label="e"> <text>“Cogeneration” means the combined generation by a facility of:</text> <level label="1"> <text>electrical or mechanical power; and</text> </level> <level label="2"> <text>energy used for industrial, commercial, heating or cooling purposes, including:</text> <level label="i"> <text>steam;</text> </level> <level label="ii"> <text>heat; and</text> </level> <level label="iii"> <text>other forms of energy.</text> </level> </level> </level> <level label="f"> <text>“Commercial building” means a building that:</text> <level label="1"> <text>is used primarily to carry on a for–profit or nonprofit business;</text> </level> <level label="2"> <text>is not residential; and</text> </level> <level label="3"> <text>is not used primarily to manufacture or produce raw materials, products, or agricultural commodities.</text> </level> </level> <level label="g"> <text>“Energy audit” means:</text> <level label="1"> <text>an energy audit performed for the purposes of Title VII of the Energy Policy and Conservation Act, 42 U.S.C. §§ 6201 through 6422; or</text> </level> <level label="2"> <text>an onsite inspection of a commercial building, an industrial building, or an industrial process to determine and provide information on:</text> <level label="i"> <text>the type, quantity, and rate of energy consumption of the building or process;</text> </level> <level label="ii"> <text>maintenance and operation procedures that might reduce the energy consumption of the building or process; and</text> </level> <level label="iii"> <text>the cost of implementing an appropriate energy conservation project, a solar energy project, or both, and the savings in energy costs likely to result from the project.</text> </level> </level> </level> <level label="h"> <text>“Energy conservation project” means a project that qualifies under § 5-447 of this subtitle.</text> </level> <level label="i"> <level label="1"> <text>“Energy project” means a project that qualifies under § 5-445 of this subtitle.</text> </level> <level label="2"> <text>“Energy project” includes:</text> <level label="i"> <text>an energy conservation project; and</text> </level> <level label="ii"> <text>a solar energy project.</text> </level> </level> </level> <level label="j"> <text>“Export-related financing transaction” means financing provided to a manufacturer of goods in the State, or a seller of goods or services in the State, if the goods or services are intended for sale to a foreign entity.</text> </level> <level label="k"> <level label="1"> <text>“Facility” has the meaning stated in § 12-101 of this article.</text> </level> <level label="2"> <text>“Facility” includes an energy project.</text> </level> </level> <level label="l"> <text>“Facility applicant” has the meaning stated in § 12-101 of this article.</text> </level> <level label="m"> <text>“Facility user” has the meaning stated in § 12-101 of this article.</text> </level> <level label="n"> <text>“Finance” includes refinance.</text> </level> <level label="o"> <text>“Foreign entity” means:</text> <level label="1"> <text>a person located outside the United States; or</text> </level> <level label="2"> <text>a governmental unit of a country other than the United States.</text> </level> </level> <level label="p"> <text>“Fund” means the Industrial Development Fund established under § 5-423 of this subtitle.</text> </level> <level label="q"> <text>“Improve” means to construct, reconstruct, equip, expand, extend, improve, install, rehabilitate, or remodel.</text> </level> <level label="r"> <text>“Improvement” means construction, addition, alteration, equipping, expansion, extension, improvement, installation, reconstruction, rehabilitation, remodeling, or repair.</text> </level> <level label="s"> <level label="1"> <text>“Industrial building” means a building that:</text> <level label="i"> <text>is used primarily to carry on a for–profit or nonprofit business;</text> </level> <level label="ii"> <text>is used primarily for an industrial process; and</text> </level> <level label="iii"> <text>controls energy usage within its exterior envelope but does not have a peak design rate of energy usage of less than:</text> <level label="1"> <level label="3"> <text>5 B.T.U. per hour per square foot; or</text> </level> </level> <level label="2"> <text>1 watt per square foot of floor area.</text> </level> </level> </level> <level label="2"> <text>“Industrial building” does not include a commercial building or a residential building.</text> </level> </level> <level label="t"> <text>“Industrial process” means:</text> <level label="1"> <text>a process used to produce or manufacture goods or products; or</text> </level> <level label="2"> <text>the storage or shipment of materials, goods, or products.</text> </level> </level> <level label="u"> <text>“Public body” has the meaning stated in § 12-101 of this article.</text> </level> <level label="v"> <text>“Public port” has the meaning stated in § 12-101 of this article.</text> </level> <level label="w"> <text>“Retail establishment” means an establishment that sells goods or services to the ultimate user or consumer for personal use rather than business use.</text> </level> <level label="x"> <text>“Solar energy project” means a project that qualifies under § 5-448 of this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-402" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>This subtitle shall be liberally construed to accomplish its purposes.</text> </section> <section article="gec" article_name="Economic Development" number="5-403" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The General Assembly finds that:</text> <level label="1"> <text>unemployment conditions exist in many areas of the State;</text> </level> <level label="2"> <text>the acquisition and improvement of facilities are essential to relieve this unemployment and establish a balanced economy in the State;</text> </level> <level label="3"> <text>the health, safety, welfare, and right of gainful employment of residents throughout the State will be promoted by the acquisition and improvement of facilities;</text> </level> <level label="4"> <text>the control or abatement of environmental pollution in the State, including noise pollution, is necessary to:</text> <level label="i"> <text>protect the health, safety, and welfare of the residents of the State;</text> </level> <level label="ii"> <text>protect natural resources;</text> </level> <level label="iii"> <text>retain and attract industry and commercial enterprises; and</text> </level> <level label="iv"> <text>promote economic development;</text> </level> </level> <level label="5"> <text>public ports in the State are valuable assets and any improvements to these ports that increase the import and export of waterborne commerce will directly benefit residents throughout the State;</text> </level> <level label="6"> <text>businesses need greater access to capital markets; and</text> </level> <level label="7"> <text>the availability of financial assistance under this subtitle will promote the economic development of the State.</text> </level> </level> <level label="b"> <text>The purposes of this subtitle are to:</text> <level label="1"> <text>relieve unemployment in the State;</text> </level> <level label="2"> <text>encourage the increase of industry and commerce and a balanced economy in the State;</text> </level> <level label="3"> <text>help retain and attract industry and commerce through measures including:</text> <level label="i"> <text>port development;</text> </level> <level label="ii"> <text>the control, reduction, or abatement of environmental pollution; and</text> </level> <level label="iii"> <text>the utilization and disposal of wastes;</text> </level> </level> <level label="4"> <text>promote economic development;</text> </level> <level label="5"> <text>protect natural resources and encourage resource recovery;</text> </level> <level label="6"> <text>encourage the creation and expansion of day care facilities in the State; and</text> </level> <level label="7"> <text>promote the health, safety, and welfare of residents throughout the State.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-404" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Authority shall:</text> <level label="1"> <text>work to increase the utilization of the programs and funds established under the Authority to assist minority and women–owned businesses in the State; and</text> </level> <level label="2"> <text>consider incentives to encourage the use of the Authority’s credit insurance services.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the Authority shall develop and implement a marketing plan to increase awareness of the Authority’s credit insurance services.</text> </level> <level label="2"> <text>The marketing plan implemented under paragraph (1) of this subsection shall identify methods to increase the utilization of the Authority’s credit insurance services by community banks and other financial institutions that make loans to historically disadvantaged businesses and businesses in rural areas of the State.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-406" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>There is a Maryland Industrial Development Financing Authority in the Department.</text> </level> <level label="b"> <text>The Authority is a body politic and corporate and is an instrumentality of the State.</text> </level> <level label="c"> <text>The exercise by the Authority of power under this subtitle is the performance of an essential governmental function.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-407" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <level label="1"> <text>The Authority consists of the following nine members:</text> <level label="i"> <text>seven members appointed by the Governor with the advice and consent of the Senate; and</text> </level> <level label="ii"> <text>as ex officio members:</text> <level label="1"> <text>the Secretary; and</text> </level> <level label="2"> <text>the Treasurer or the Comptroller, as the Governor designates.</text> </level> </level> </level> <level label="2"> <text>An ex officio member may designate a representative to serve on the Authority.</text> </level> </level> <level label="b"> <text>The appointed members shall:</text> <level label="1"> <text>have substantial experience in business or economic development; and</text> </level> <level label="2"> <text>reflect the geographic, racial, ethnic, and gender makeup of the State.</text> </level> </level> <level label="c"> <level label="1"> <text>The term of an appointed member is 5 years.</text> </level> <level label="2"> <text>The terms of the appointed members are staggered as required by the terms provided for members of the Authority on October 1, 2008.</text> </level> <level label="3"> <text>At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="d"> <text>The Governor may remove an appointed member with or without cause.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-408" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The members of the Authority are also the members of the Maryland Economic Development Assistance Authority under § 5-306 of this title.</text> </level> <level label="b"> <text>The members of the Authority may act concurrently in their capacities as members of the Authority and of the Maryland Economic Development Assistance Authority.</text> </level> <level label="c"> <text>The members of the Authority shall carry out the powers and duties of the Authority under this subtitle whether acting:</text> <level label="1"> <text>concurrently as members of the Authority and the Maryland Economic Development Assistance Authority; or</text> </level> <level label="2"> <text>as members of either authority alone.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-409" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <level label="1"> <text>From among its members, the Authority shall elect a chair and a vice chair.</text> </level> <level label="2"> <text>The Executive Director serves as secretary of the Authority.</text> </level> </level> <level label="b"> <text>The Authority shall determine the manner of election of officers and their terms of office.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-410" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <level label="1"> <text>Five members of the Authority are a quorum.</text> </level> <level label="2"> <text>An affirmative vote of at least four members is needed for the Authority to act.</text> </level> </level> <level label="b"> <text>The Authority shall determine the times and places of its meetings.</text> </level> <level label="c"> <text>A member of the Authority:</text> <level label="1"> <text>is not entitled to compensation as a member of the Authority; but</text> </level> <level label="2"> <text>is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-411" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <level label="1"> <text>With the approval of the Secretary, the Authority shall appoint an Executive Director.</text> </level> <level label="2"> <text>The Executive Director serves at the pleasure of the Authority, with the concurrence of the Secretary.</text> </level> <level label="3"> <text>The position of Executive Director is a special appointment under the State Personnel and Management System.</text> </level> </level> <level label="b"> <text>The Executive Director is the chief administrative officer of the Authority.</text> </level> <level label="c"> <text>The Executive Director shall:</text> <level label="1"> <text>direct and supervise the administrative affairs and technical activities of the Authority;</text> </level> <level label="2"> <text>attend the meetings of the Authority;</text> </level> <level label="3"> <text>record the minutes of the proceedings of the Authority;</text> </level> <level label="4"> <text>approve all accounts for salaries, per diem payments, and allowable expenses of the Authority, its employees, and its consultants;</text> </level> <level label="5"> <text>approve all expenses incidental to the operation of the Authority;</text> </level> <level label="6"> <text>in cooperation with the Department, submit to the Authority reports and recommendations related to proposed financial assistance under this subtitle; and</text> </level> <level label="7"> <text>perform the other duties that the Secretary or the Authority requires to carry out this subtitle.</text> </level> </level> <level label="d"> <text>The Executive Director is the resident agent of the Authority for the receipt of service made in accordance with the Maryland Rules.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-412" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Authority may employ a staff in accordance with the State budget.</text> </level> <level label="b"> <text>The Authority shall appoint and remove all personnel in accordance with the State Personnel and Pensions Article.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-413" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Authority may:</text> <level label="1"> <text>adopt bylaws for the conduct of its business;</text> </level> <level label="2"> <text>adopt a seal;</text> </level> <level label="3"> <text>maintain offices in the State;</text> </level> <level label="4"> <text>sue and be sued in its own name;</text> </level> <level label="5"> <text>retain consultants;</text> </level> <level label="6"> <text>use the services of other governmental agencies;</text> </level> <level label="7"> <text>in accordance with the purposes of this subtitle, contract for and accept a loan or grant from the federal government or the State, a local government, or any of their units or instrumentalities;</text> </level> <level label="8"> <text>acquire, improve, manage, operate, dispose of, or otherwise deal with property, take assignments of rentals and leases, and make contracts, leases, agreements, and arrangements that are necessary or incidental to the performance of the Authority’s duties, on the terms and conditions that it may consider advisable;</text> </level> <level label="9"> <text>acquire or receive assignment of a document executed, obtained, or delivered in connection with financial assistance under this subtitle;</text> </level> <level label="10"> <text>subject to any outstanding agreement the Authority makes under this subtitle, make a covenant or other agreement regarding the Authority’s insurance funds, establish within them accounts to carry out this subtitle, and allocate revenue and receipts among the accounts;</text> </level> <level label="11"> <text>fix, charge, and collect a premium, fee, cost, or other expense related to financial assistance under this subtitle, including an application fee, commitment fee, program fee, finance charge, and publication fee;</text> </level> <level label="12"> <text>authorize the chair, vice chair, or Executive Director to perform, on behalf of the Authority, a duty or prescribe, specify, determine, or approve a detail, document, procedure, or a matter that the Authority, in its sole discretion, determines appropriate to carry out this subtitle; and</text> </level> <level label="13"> <text>do all things necessary or convenient to carry out the powers granted by this subtitle.</text> </level> </level> <level label="b"> <text>The Authority shall:</text> <level label="1"> <text>keep records of its funds and accounts; and</text> </level> <level label="2"> <text>ensure that its funds and accounts are audited annually.</text> </level> </level> <level label="c"> <text>In its internal functions, the Authority shall purchase office space, supplies, facilities, materials, equipment, and professional services in accordance with the State Finance and Procurement Article.</text> </level> <level label="d"> <text>The Authority exercises its powers and performs its duties subject to the authority of the Secretary.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-414" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>The Authority may adopt regulations to carry out this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="5-415" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Authority may approve, or may authorize the Executive Director to approve, the form of an agreement by the Authority under this subtitle.</text> </level> <level label="b"> <text>Any money that the Authority pays under an agreement the Authority makes under this subtitle shall be payable as and when the Authority determines in its sole discretion.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-416" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>A finding by the Authority, including a finding as to the public purpose of an action taken under this subtitle, and the appropriateness of that action to serve the public purpose, is conclusive in a proceeding involving the validity or enforceability of:</text> <level label="1"> <text>an agreement the Authority enters into under this subtitle;</text> </level> <level label="2"> <text>a bond; or</text> </level> <level label="3"> <text>any security relating to item (1) or (2) of this section.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-417" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>Even though a determination of the Authority about financial assistance is subject to the Maryland Public Ethics Law, the existence of a conflict of interest or a violation of the Maryland Public Ethics Law does not affect:</text> <level label="1"> <text>the validity of a finding or determination made under this subtitle;</text> </level> <level label="2"> <text>the enforceability of an agreement that the Authority makes under this subtitle; or</text> </level> <level label="3"> <text>the validity or enforceability of a bond that the Authority issues.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-418" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>A member of the Authority, a person executing a bond or agreement of the Authority under this subtitle, or an employee of the Authority, the Department, or the State is not:</text> <level label="1"> <text>personally liable on a bond or agreement of the Authority; or</text> </level> <level label="2"> <text>subject to personal liability or accountability arising from the issuance, execution, or delivery of a bond or agreement of the Authority.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-419" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>In accordance with § 2.5–109 of this article, the Authority shall submit a report on its condition and operations.</text> </section> <section article="gec" article_name="Economic Development" number="5-420" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>If the Authority dissolves, title to its property vests in the State.</text> </section> <section article="gec" article_name="Economic Development" number="5-423" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>There is an Industrial Development Fund.</text> </section> <section article="gec" article_name="Economic Development" number="5-424" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>The Fund shall be used:</text> <level label="1"> <text>for the purposes described in Part VI and §§ 5–430, 5–431, and 5–438 of this subtitle; and</text> </level> <level label="2"> <text>to pay expenses of the Authority, including expenses:</text> <level label="i"> <text>for administrative, legal, actuarial, and other services;</text> </level> <level label="ii"> <text>related to:</text> <level label="1"> <text>issuance or insurance of bonds and authorized purpose obligations; and</text> </level> <level label="2"> <text>funding of reserves; and</text> </level> </level> <level label="iii"> <text>of providing other financial assistance under this subtitle.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-425" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Fund is a continuing, nonlapsing fund that is not subject to reversion under § 7-302 of the State Finance and Procurement Article.</text> </level> <level label="b"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>premiums, fees, and any other money received by the Authority with respect to financial assistance provided by the Authority from the Fund;</text> </level> <level label="3"> <text>proceeds from the sale, lease, or other disposition of property of the Authority;</text> </level> <level label="4"> <text>interest received from linked deposits made from the Linked Deposit Program under Part VI of this subtitle; and</text> </level> <level label="5"> <text>any other money made available under this subtitle.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-426" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Treasurer shall:</text> <level label="1"> <text>invest the money in the Fund in the same manner as other State money may be invested; and</text> </level> <level label="2"> <text>credit any investment earnings to the Fund.</text> </level> </level> <level label="b"> <text>Any net investment earnings of the Fund, beyond those necessary to further the purposes of this subtitle, may not benefit a person other than the State.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-427" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Authority shall send a written request to the Board of Public Works for additional money if:</text> <level label="1"> <text>the Authority and the Secretary find that more money is needed to keep the reserves of the Fund at an adequate level; and</text> </level> <level label="2"> <text>the Secretary consents to the request.</text> </level> </level> <level label="b"> <text>The Board of Public Works may disburse the requested amount from the General Emergency Fund.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-428" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>With the consent of the Secretary, the Authority may pay to the Treasurer, to the credit of the General Fund, money that the Authority determines exceeds the amount necessary to meet:</text> <level label="1"> <text>the obligations of the Authority under this subtitle; and</text> </level> <level label="2"> <text>the requirements of this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-429" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>Each year the Treasurer shall report to the Authority on the:</text> <level label="1"> <text>status of the Fund;</text> </level> <level label="2"> <text>market value of the assets in the Fund as of the date of the report; and</text> </level> <level label="3"> <text>earnings from investments of the Fund during the period covered by the report.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-430" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>If the requirements of this section are satisfied, and subject to § 5-432 of this subtitle, the Authority may use the Fund to:</text> <level label="1"> <text>insure the payment of any of the principal of, redemption or prepayment premiums or penalties on, and interest on:</text> <level label="i"> <text>bonds; and</text> </level> <level label="ii"> <text>any instrument executed, obtained, or delivered in connection with the issuance and sale of bonds; and</text> </level> </level> <level label="2"> <text>pay or insure the payment of fees or premiums for insurance, guarantees, or other credit support in connection with financial assistance under this subtitle.</text> </level> </level> <level label="b"> <text>Based on factors it considers relevant, the Authority shall determine, in its sole discretion, that the economic impact of the transaction will be substantial.</text> </level> <level label="c"> <text>The Authority shall find:</text> <level label="1"> <text>that the acquisition or improvement of a facility will not result in:</text> <level label="i"> <text>the removal from one county to another county of the business operations of the facility user; or</text> </level> <level label="ii"> <text>the abandonment of a facility in the State; or</text> </level> </level> <level label="2"> <text>if the acquisition or improvement will result in removal or abandonment, that the acquisition or improvement will:</text> <level label="i"> <text>discourage the facility user from leaving the State; or</text> </level> <level label="ii"> <text>preserve the competitive position of the facility user in its industry.</text> </level> </level> </level> <level label="d"> <text>The Authority shall find that the Authority will not be required, except on default, to operate, service, or maintain the facility.</text> </level> <level label="e"> <text>The bonds or instruments shall be secured in a manner that the Authority approves.</text> </level> <level label="f"> <text>Financial assistance from the Fund provided under this section may not exceed an aggregate amount of $7,500,000 for a single facility.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-431" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>If the requirements of this section are satisfied, and subject to § 5–432 of this subtitle, the Authority may use the Fund to:</text> <level label="1"> <text>insure the payment of any of the principal of, redemption or prepayment premiums or penalties on, and interest on authorized purpose obligations; and</text> </level> <level label="2"> <text>pay or insure the payment of fees or premiums for insurance, guarantees, or other credit support in connection with financial assistance under this subtitle.</text> </level> </level> <level label="b"> <text>Based on factors it considers relevant, the Authority shall determine, in its sole discretion, that the economic impact of the transaction will be substantial.</text> </level> <level label="c"> <text>The Authority shall find:</text> <level label="1"> <text>that the transaction will not result in:</text> <level label="i"> <text>the removal from one county to another county of the business operations of any person who benefits from the transaction; or</text> </level> <level label="ii"> <text>the abandonment of the business operations in the State of any person who benefits from the transaction; or</text> </level> </level> <level label="2"> <text>if the transaction will result in removal or abandonment, that the transaction will:</text> <level label="i"> <text>discourage the business from leaving the State; or</text> </level> <level label="ii"> <text>preserve the competitive position of the business in its industry.</text> </level> </level> </level> <level label="d"> <text>Financial assistance under this section may only be used in connection with a retail establishment if the Authority determines, in its sole discretion, that the financial assistance will accomplish the purposes of this subtitle.</text> </level> <level label="e"> <text>The Authority shall find that the Authority will not be required, except on default, to operate, service, or maintain any business.</text> </level> <level label="f"> <text>The authorized purpose obligations shall be secured in a manner that the Authority approves.</text> </level> <level label="g"> <text>Financial assistance from the Fund provided under this section may not exceed an aggregate amount of $2,500,000 for a single transaction.</text> </level> <level label="h"> <text>The aggregate amount of insurance provided under this section for a single authorized purpose obligation may not exceed:</text> <level label="1"> <text>for an export–related financing transaction, 90% of the total of the principal of, redemption or prepayment premiums or penalties on, and interest on the authorized purpose obligation; or</text> </level> <level label="2"> <text>for a transaction other than an export–related financing transaction, 80% of the total of the principal of, redemption or prepayment premiums or penalties on, and interest on the authorized purpose obligation.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-432" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>The portion of the aggregate principal amount of bonds and authorized purpose obligations that the Fund insures at any time may not exceed 5 times the Fund balance.</text> </section> <section article="gec" article_name="Economic Development" number="5-435" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>Financial assistance under this subtitle is:</text> <level label="1"> <text>subject to the provisions of Title 20 of the State Government Article concerning discrimination and unlawful practices; and</text> </level> <level label="2"> <text>not subject to Title 17, Subtitle 1 of the State Finance and Procurement Article (Security for construction projects).</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-436" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Authority may issue and sell bonds in accordance with Title 12, Subtitle 1 of this article (Maryland Economic Development Revenue Bond Act) and this subtitle to accomplish the purposes of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>The Authority may issue its bonds without the consent of any other unit of State government, any proceedings, or the occurrence of any conditions, other than those expressly required by this subtitle.</text> </level> <level label="2"> <level label="i"> <text>Before the Authority issues bonds, the Authority shall notify the Board of Public Works of its intention to issue the bonds up to a stated amount.</text> </level> <level label="ii"> <text>The Board of Public Works may coordinate the issuance of the bonds with any issuance of bonds of the State or its units or instrumentalities.</text> </level> </level> <level label="3"> <text>The failure of the Authority to notify the Board of Public Works under paragraph (2)(i) of this subsection does not affect the validity or enforceability of bonds, findings or determinations, or agreements of the Authority.</text> </level> </level> <level label="c"> <level label="1"> <text>When the Authority issues bonds, it is in the public interest that the Authority try to achieve a goal that 10% of the facility users are minority business enterprises as defined in § 14-301 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The failure of the Authority to achieve the goal set out under paragraph (1) of this subsection does not affect in any way the validity or enforceability of bonds, findings or determinations, or agreements of the Authority.</text> </level> </level> <level label="d"> <level label="1"> <text>This subsection does not apply to insurance that the Authority provides.</text> </level> <level label="2"> <text>A bond the Authority issues and the interest on the bond are limited obligations of the Authority.</text> </level> <level label="3"> <text>Except for bond anticipation notes and notes in the nature of commercial paper, the principal of, premium, and interest on a bond are payable solely from:</text> <level label="i"> <text>money from the financing of a facility; and</text> </level> <level label="ii"> <text>other money made available to the Authority.</text> </level> </level> <level label="4"> <text>Bonds and the interest on them:</text> <level label="i"> <text>are not debts or charges against the general credit or taxing powers of the State, the Department, the Authority, or any other public body within the meaning of any constitutional or charter provision or statutory limitation; and</text> </level> <level label="ii"> <text>may not give rise to any pecuniary liability of the State, the Department, the Authority, or any other public body.</text> </level> </level> <level label="5"> <text>A bond may state on its face that the bond:</text> <level label="i"> <text>is issued under Title 12, Subtitle 1 of this article (Maryland Economic Development Revenue Bond Act) and this subtitle; and</text> </level> <level label="ii"> <text>is not a debt to which the faith and credit of the State, the Department, the Authority, or any other public body is pledged.</text> </level> </level> </level> <level label="e"> <text>Bonds that the Authority issues are exempt from State and local taxes as provided in § 12-116 of this article.</text> </level> <level label="f"> <text>Facilities financed with the proceeds of bonds that the Authority issues are not subject to the requirements of any law regarding competitive bidding.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-437" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Authority may authorize the Executive Director of the Authority to approve, on behalf of the Authority, financial assistance under § 5–431 of this subtitle not exceeding the aggregate amount of $250,000 for a single transaction.</text> </level> <level label="b"> <text>An approval by the Executive Director under this section:</text> <level label="1"> <text>is subject to concurrence of the Secretary, the Secretary’s designee, or the chair of the Authority;</text> </level> <level label="2"> <text>shall comply with the requirements of this subtitle; and</text> </level> <level label="3"> <text>is binding on the Authority.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-438" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>In conjunction with financial assistance under this subtitle, the Authority may:</text> <level label="1"> <text>accept an option to acquire an equity interest in a business enterprise; and</text> </level> <level label="2"> <text>exercise, in its sole discretion, the option using money from the Fund.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-439" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Authority may set premiums and fees for financial assistance under this subtitle in its sole discretion.</text> </level> <level label="b"> <text>The premiums and fees shall be payable in the amounts, at the time, and in the manner that the Authority requires in its sole discretion.</text> </level> <level label="c"> <text>The premiums and fees may vary in amount among approvals for financial assistance under this subtitle and at different stages of the financial assistance.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-440" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The Authority may not charge a premium for insurance if the Authority determines that, at the time the insurance is approved, the facility or business for which the Authority provides insurance is located in a Tier I county.</text> </level> <level label="b"> <text>A determination by the Authority under subsection (a) of this section for a facility or business is effective for as long as the financial assistance is in effect.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-441" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>Insurance on bonds or authorized purpose obligations provided before July 1, 2000, shall continue as obligations of the Authority and are authorized under this subtitle.</text> </level> <level label="b"> <text>Financial assistance that the Authority approves, but that is not closed before July 1, 2000, is authorized under this subtitle.</text> </level> <level label="c"> <text>Bonds issued by the Maryland Energy Financing Administration shall continue after December 31, 2001, as obligations of the Authority and are authorized under this subtitle.</text> </level> <level label="d"> <text>Loan guarantees that the Department provided from the former Day Care Loan Guarantee Fund shall continue as obligations of the Authority and are authorized under this subtitle.</text> </level> <level label="e"> <text>Deposit agreements between the Department and a lender under the former Maryland Enterprise Incentive Deposit Fund Program shall continue as obligations of the Authority and are authorized under this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-444" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <level label="1"> <text>The Authority shall participate in financial assistance programs for energy projects provided by the federal Energy Security Act, P.L. 96-294.</text> </level> <level label="2"> <text>For purposes of that Act, the Authority is a “person” as defined in:</text> <level label="i"> <text>42 U.S.C. § 8802, concerning the financing of biomass energy, municipal solid waste, and alcohol fuels projects; and</text> </level> <level label="ii"> <text>30 U.S.C. § 1511, concerning the financing of geothermal energy projects.</text> </level> </level> </level> <level label="b"> <text>For purposes of the federal Public Utility Regulatory Policies Act of 1978, the Authority is a “nonprofit organization” as defined in 16 U.S.C. § 2708 and used in 16 U.S.C. §§ 2702 and 2703, concerning small-scale hydropower projects.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-445" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Renewable fuel” means gaseous, liquid, or solid fuel from any organic matter and its by–products.</text> </level> <level label="ii"> <text>“Renewable fuel” includes fuel from:</text> <level label="1"> <text>an agricultural crop, agricultural waste, or agricultural residue;</text> </level> <level label="2"> <text>wood, wood waste, or wood residue;</text> </level> <level label="3"> <text>animal waste;</text> </level> <level label="4"> <text>aquatic plants;</text> </level> <level label="5"> <text>sewage or sewage sludge;</text> </level> <level label="6"> <text>municipal, industrial, or commercial waste;</text> </level> <level label="7"> <text>any mixture of any of these substances with inorganic refuse from a public or private municipal waste collection system or similar disposal system; or</text> </level> <level label="8"> <text>any combination of items 1 through 7 of this subparagraph.</text> </level> </level> <level label="iii"> <text>“Renewable fuel” does not include fossil fuel.</text> </level> </level> <level label="3"> <text>“Transportation facility” means a transportation facility that is used exclusively to transport fuel produced by a fuel production facility to:</text> <level label="i"> <text>a storage facility;</text> </level> <level label="ii"> <text>a pipeline connection to an existing pipeline or processing facility; or</text> </level> <level label="iii"> <text>an area near the fuel production facility.</text> </level> </level> </level> <level label="b"> <text>A project qualifies as an energy project if it consists of:</text> <level label="1"> <text>an energy conservation project;</text> </level> <level label="2"> <text>a solar energy project;</text> </level> <level label="3"> <text>the construction of a facility to produce solar energy equipment;</text> </level> <level label="4"> <text>the construction of a facility or portion of a facility to:</text> <level label="i"> <text>produce renewable fuel; and</text> </level> <level label="ii"> <text>burn renewable fuel, or a mixture of renewable fuel with other materials, to generate:</text> <level label="1"> <text>heat;</text> </level> <level label="2"> <text>mechanical power;</text> </level> <level label="3"> <text>electricity, including by cogeneration; or</text> </level> <level label="4"> <text>other useful forms of energy;</text> </level> </level> </level> <level label="5"> <text>the conversion of any facility to use renewable fuel;</text> </level> <level label="6"> <text>the expansion or improvement of a facility that increases its capacity or efficiency to use renewable fuel;</text> </level> <level label="7"> <text>the acquisition and improvement of equipment for use in a facility specified in items (4) through (6) of this subsection;</text> </level> <level label="8"> <text>the acquisition or improvement of land for a facility specified in items (4) through (6) of this subsection;</text> </level> <level label="9"> <text>the purchase, construction, or installation of a facility or equipment to use groundwater as a heat source for a heating system or as a heat sink for an air conditioning system;</text> </level> <level label="10"> <text>the purchase, construction, or installation of a facility or equipment to develop and use the natural heat of the earth for direct use or to generate electricity;</text> </level> <level label="11"> <text>the purchase, construction, and installation of a hydroelectric facility at an existing dam that:</text> <level label="i"> <text>uses the water power potential of the dam; and</text> </level> <level label="ii"> <text>has no more than 30 megawatts of installed capacity;</text> </level> </level> <level label="12"> <text>the construction of a fuel production facility for commercial production of a gaseous, liquid, or solid fuel, or of a combination of them, that:</text> <level label="i"> <text>is produced by chemical or physical transformation of coal or mixtures of coal and other materials;</text> </level> <level label="ii"> <text>can be used as a substitute for petroleum or natural gas, or any of their derivatives, including chemical feedstocks; and</text> </level> <level label="iii"> <text>includes only:</text> <level label="1"> <text>the fuel production facility, including the equipment, plant, supplies, and other materials associated with the fuel production facility;</text> </level> <level label="2"> <text>the land and mineral rights required directly for use in connection with the fuel production facility;</text> </level> <level label="3"> <text>any other facility or equipment to be used in the extraction of a mineral for use directly and exclusively in the fuel production facility that is necessary to the project and is:</text> </level> <level label="A"> <text>colocated with or located in the immediate vicinity of the fuel production facility; or</text> </level> <level label="B"> <text>if not colocated or located in accordance with item A of this item:</text> </level> <level label="I"> <text>a coal mine in the case that no other reasonable source of coal is available to the project; or</text> <text>II. incidental to the project; and</text> </level> <level label="4"> <text>any transportation facility, electric power plant, electric transmission line, or other facility that is:</text> </level> <level label="A"> <text>for the exclusive use of the project;</text> </level> <level label="B"> <text>incidental to the project; and</text> </level> <level label="C"> <text>necessary to the project;</text> </level> </level> </level> <level label="13"> <text>the conversion of a facility from using petroleum–based fuel to coal or to a mixture of coal and other materials as a fuel; or</text> </level> <level label="14"> <text>the construction of a facility to burn coal using innovative technology that increases the efficiency of the combustion process.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-446" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>In awarding financial assistance under this subtitle for an energy project, the Authority shall consider whether the energy project would:</text> <level label="1"> <text>reduce the consumption of petroleum and other energy sources;</text> </level> <level label="2"> <text>increase the energy supply available in the State;</text> </level> <level label="3"> <text>increase employment and economic activity in the State;</text> </level> <level label="4"> <text>use sound technology and be economically feasible;</text> </level> <level label="5"> <text>minimize harm to the environment; and</text> </level> <level label="6"> <text>make the most use of federal financial assistance programs for energy projects.</text> </level> </level> <level label="b"> <text>The Authority shall:</text> <level label="1"> <text>promote programs of financial assistance for energy projects established under this subtitle;</text> </level> <level label="2"> <text>inform consumers, the private sector, and financial institutions about these programs and actively seek their participation;</text> </level> <level label="3"> <text>develop and disseminate descriptions of its programs of financial assistance for energy projects; and</text> </level> <level label="4"> <text>serve as a clearinghouse for information on federal and State programs of financial assistance for energy projects.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-447" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>A project involving a commercial building, an industrial building, or an industrial process qualifies as an energy conservation project if it consists of:</text> <level label="1"> <text>the purchase, installation, or modification of an installation that is designed primarily to reduce the consumption of energy, including:</text> <level label="i"> <text>caulking or weather stripping;</text> </level> <level label="ii"> <text>insulating the building structure or a system in the building;</text> </level> <level label="iii"> <text>a storm window or door, a multiglazed window or door, a heat-absorbing or heat-reflecting window or door system, glazing, a reduction in glass area, or another window or door system modification;</text> </level> <level label="iv"> <text>an automatic energy control system;</text> </level> <level label="v"> <text>equipment that is associated with an automatic energy control system and that is required to operate a variable steam, hydraulic, or ventilation system;</text> </level> <level label="vi"> <text>the replacement or modification of a lighting system to increase energy efficiency;</text> </level> <level label="vii"> <text>an energy recovery system;</text> </level> <level label="viii"> <text>a cogeneration system;</text> </level> <level label="ix"> <text>a system for processing or converting the waste products of the industrial process to steam, electricity, heat, or other useful form of energy;</text> </level> <level label="x"> <text>an improvement to the industrial process that reduces the energy requirements for each unit of output;</text> </level> <level label="xi"> <text>a modification of a furnace or utility plant and distribution system including:</text> <level label="1"> <text>a replacement burner, furnace, or boiler or any combination of them that increases the energy efficiency of the heating system;</text> </level> <level label="2"> <text>a device for modifying a flue opening that increases the energy efficiency of the heating system; and</text> </level> <level label="3"> <text>an electrical or mechanical furnace ignition system that replaces a standing gas pilot light; or</text> </level> </level> <level label="xii"> <text>any other energy conservation improvement that the Authority determines by regulation to be appropriate and consistent with this subtitle; or</text> </level> </level> <level label="2"> <text>a planning or technical service or an energy audit, if the service or audit is related to or undertaken with the installation, or the modification of an installation of an item specified in item (1) of this section.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-448" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>A project qualifies as a solar energy project if it:</text> <level label="1"> <text>is an addition, alteration, or improvement to a commercial building or industrial building; and</text> </level> <level label="2"> <text>is designed to reduce the energy requirements of the building by using:</text> <level label="i"> <text>wind energy;</text> </level> <level label="ii"> <text>energy from a wood-burning appliance; or</text> </level> <level label="iii"> <text>solar energy of:</text> <level label="1"> <text>the active type based on mechanically forced energy transfer;</text> </level> <level label="2"> <text>the passive type based on convective, conductive, or radiant energy transfer; or</text> </level> <level label="3"> <text>a combination of these types.</text> </level> </level> </level> </level> <level label="b"> <text>A solar energy project may include:</text> <level label="1"> <text>a solar process heat device;</text> </level> <level label="2"> <text>a solar electric device; and</text> </level> <level label="3"> <text>an earth-sheltered building in which the sheltering substantially reduces the consumption of energy by the building.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-451" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Applicant” means the eligible business applying for fixed asset financing assisted by a linked deposit.</text> </level> <level label="c"> <text>“Eligible business” means a for–profit business that:</text> <level label="1"> <text>is located in a qualified distressed county;</text> </level> <level label="2"> <text>is in good standing with each State regulatory authority with jurisdiction over the business of the applicant, including the State Workers’ Compensation Commission, the Department of Assessments and Taxation, and the Maryland Department of Labor; and</text> </level> <level label="3"> <text>employs 500 or fewer employees.</text> </level> </level> <level label="d"> <level label="1"> <text>“Fixed asset financing” means a commercial loan to finance:</text> <level label="i"> <text>the acquisition or improvement of all or part of a building;</text> </level> <level label="ii"> <text>the acquisition or improvement of the land for the building if not already owned by the applicant; or</text> </level> <level label="iii"> <text>the acquisition or improvement of equipment.</text> </level> </level> <level label="2"> <text>“Fixed asset financing” does not include refinancing an existing debt.</text> </level> </level> <level label="e"> <text>“Lender” means a financial institution that:</text> <level label="1"> <text>is eligible to make commercial loans;</text> </level> <level label="2"> <text>is a public depository of State funds;</text> </level> <level label="3"> <text>agrees to receive linked deposits under this part; and</text> </level> <level label="4"> <text>is insured by the Federal Deposit Insurance Corporation.</text> </level> </level> <level label="f"> <text>“Linked deposit” means a deposit that the Authority places with a lender that earns interest below the prevailing market rate for equivalent deposits made with the lender at the time of the deposit.</text> </level> <level label="g"> <text>“Program” means the Linked Deposit Program established under § 5–452 of this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-452" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>There is a Linked Deposit Program in the Department.</text> </section> <section article="gec" article_name="Economic Development" number="5-453" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>The purpose of the Program is to stimulate economic and employment growth in rural areas of the State with high unemployment.</text> </level> <level label="b"> <level label="1"> <text>The Program shall assist eligible businesses to obtain a loan at below market rates.</text> </level> <level label="2"> <text>An eligible business may use a Program loan to acquire land, buildings, and equipment.</text> </level> <level label="3"> <text>An acquisition made by an eligible business with a Program loan shall be used to create or retain employment opportunities in a rural area.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-454" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>The Authority may place a linked deposit with a lender in accordance with this part.</text> </section> <section article="gec" article_name="Economic Development" number="5-455" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>To obtain fixed asset financing under this part, an eligible business shall apply to a lender for fixed asset financing.</text> </level> <level label="b"> <text>Fixed asset financing under this part may not exceed $500,000 for an eligible business.</text> </level> <level label="c"> <text>In addition to the information that the lender requires in its standard loan application, the applicant shall provide to the lender, in a form that the Authority prescribes:</text> <level label="1"> <text>a certification, with supporting documentation, that the applicant is an eligible business; and</text> </level> <level label="2"> <text>a description of the number and kinds of jobs to be created or retained as a result of providing the linked deposit.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-456" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>On conditional approval of a fixed asset financing loan application under this part, the lender shall forward the loan package to the Authority.</text> </level> <level label="b"> <text>In addition to any other information the Authority reasonably requires to carry out the purposes of this part, the linked deposit loan package shall include the information required of the applicant under § 5-455(c) of this subtitle.</text> </level> <level label="c"> <text>By forwarding the loan package to the Authority, the lender is not representing to the Authority that information in the loan package that relates to the applicant is accurate or valid.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-457" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>In determining whether to accept a linked deposit loan package, the Authority shall confirm the eligibility of the applicant and consider:</text> <level label="1"> <text>the number and kinds of jobs to be created or retained as a result of providing the linked deposit;</text> </level> <level label="2"> <text>the amount of the loan;</text> </level> <level label="3"> <text>the amount of money in the Fund and the amount committed to linked deposits;</text> </level> <level label="4"> <text>whether the availability of linked deposit financing is essential for the economic feasibility of the acquisition;</text> </level> <level label="5"> <text>the economic needs of the area in which the eligible business is located;</text> </level> <level label="6"> <text>the financial feasibility of the loan; and</text> </level> <level label="7"> <text>other factors that the Authority considers relevant.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-458" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>If the Authority accepts a linked deposit loan package forwarded from a lender, the Authority and the lender shall make an agreement that sets the amount of, the term of, and the schedule for payment of the principal of and interest on the linked deposit.</text> </section> <section article="gec" article_name="Economic Development" number="5-459" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>On receiving linked deposit approval from the Authority, the lender shall issue a loan commitment to the applicant that provides that the interest rate on the financing will be below the prevailing market rate to the same extent and for as long as interest earned on the linked deposit is below interest earned on other equivalent deposits with the lender at the time of the deposit.</text> </section> <section article="gec" article_name="Economic Development" number="5-460" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>A fixed asset financing loan assisted by a linked deposit is not a debt of the State or a pledge of the credit of the State.</text> </level> <level label="b"> <text>The Authority and, in accordance with § 5-521 of the Courts Article, the Department and the State are not liable to a lender for payment of the principal or interest on a fixed asset financing loan assisted by a linked deposit under this part.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-463" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <level label="a"> <text>A person may not knowingly make or cause a false statement or report to be made in an application or document submitted to the Authority.</text> </level> <level label="b"> <text>A person may not knowingly make or cause a false statement or report to be made to influence an action of the Authority:</text> <level label="1"> <text>on an application for financial assistance under this subtitle; or</text> </level> <level label="2"> <text>affecting financial assistance sought or awarded under this subtitle.</text> </level> </level> <level label="c"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.</text> </level> <level label="d"> <text>A person who violates this section is subject to § 5-106(b) of the Courts Article.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-466" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="4" subtitle_name="Maryland Industrial Development Financing Authority"> <text>This subtitle may be referred to as the Maryland Industrial Development Financing Authority Act.</text> </section> <section article="gec" article_name="Economic Development" number="5-501" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authority” means the Maryland Small Business Development Financing Authority.</text> </level> <level label="c"> <text>“Financial institution” means:</text> <level label="1"> <text>a financial institution, as defined in § 1–101 of the Financial Institutions Article; and</text> </level> <level label="2"> <text>any other lender that the Authority approves.</text> </level> </level> <level label="d"> <text>“Fund” means the Maryland Small Business Development Financing Fund.</text> </level> <level label="e"> <level label="1"> <text>“Loan document” means an instrument or agreement that evidences, secures, or guarantees a loan.</text> </level> <level label="2"> <text>“Loan document” includes a note, financing statement, mortgage, pledge, assignment, loan and security agreement, or guaranty.</text> </level> </level> <level label="f"> <level label="1"> <text>“Working capital” means money used to meet the cash needs of an operating business entity.</text> </level> <level label="2"> <text>“Working capital” does not include money used for a capital purchase.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-502" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>The General Assembly finds that:</text> <level label="1"> <text>the inability of socially or economically disadvantaged individuals to obtain working capital is a major limitation on their opportunity to win and perform government and other contracts;</text> </level> <level label="2"> <text>because socially or economically disadvantaged individuals frequently have been awarded government or other contracts but have lacked the working capital to post a bond, buy supplies needed to begin the work, or pay employees, these individuals have been unable to accept the contracts;</text> </level> <level label="3"> <text>some individuals are unable to obtain government and other contracts for reasons other than the cost to the owner or the ability to perform the contract work competently;</text> </level> <level label="4"> <text>socially or economically disadvantaged individuals frequently lack adequate capital to sustain and expand their businesses and to hire and train employees;</text> </level> <level label="5"> <text>because high risk, problem, or uncollectible loans are not in the interest of financial institutions, financial institutions generally are reluctant to lend money to socially or economically disadvantaged individuals with insufficient records of performance;</text> </level> <level label="6"> <text>the inability of businesses owned by socially or economically disadvantaged individuals to obtain long–term financing is a major limitation on their opportunity to survive and expand; and</text> </level> <level label="7"> <text>the public welfare is served by promoting the viability and expansion of businesses owned by economically or socially disadvantaged individuals, retaining or increasing the employment of these individuals, and expanding the taxable base of the economy of the State.</text> </level> </level> <level label="b"> <text>The purposes of the Fund are:</text> <level label="1"> <text>to assist socially or economically disadvantaged individuals to obtain adequate working capital to begin, continue, and complete projects;</text> </level> <level label="2"> <text>to encourage socially or economically disadvantaged individuals to seek government and other contracts;</text> </level> <level label="3"> <text>to encourage financial institutions to make loans to these individuals; and</text> </level> <level label="4"> <text>to assist small businesses that are unable to obtain adequate business financing on reasonable terms through normal financing channels because the businesses do not meet the established credit criteria of financial institutions.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-505" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>There is a Maryland Small Business Development Financing Authority in the Department.</text> </section> <section article="gec" article_name="Economic Development" number="5-506" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>The Authority consists of the following nine members:</text> <level label="1"> <text>seven members appointed by the Governor;</text> </level> <level label="2"> <text>the Secretary or the Secretary’s designee; and</text> </level> <level label="3"> <level label="i"> <text>the Comptroller or the Treasurer as designated by the Governor; or</text> </level> <level label="ii"> <text>the designee of the Governor’s designee.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The term of an appointed member is 5 years.</text> </level> <level label="2"> <text>The terms of appointed members are staggered as required for appointments to the Authority on October 1, 2008.</text> </level> <level label="3"> <text>At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="c"> <text>The Governor may remove an appointed member for cause.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-507" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>The Authority shall elect a chair, vice chair, and treasurer from among its members.</text> </level> <level label="b"> <text>The Authority shall determine the manner of election of officers and their terms.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-508" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <level label="1"> <text>Four members of the Authority are a quorum.</text> </level> <level label="2"> <text>The Authority may not act on any matter unless at least four members in attendance concur.</text> </level> </level> <level label="b"> <text>The Authority shall determine the times and places of its meetings.</text> </level> <level label="c"> <text>A member of the Authority is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> <level label="d"> <text>The Authority may employ a staff in accordance with the State budget.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-509" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <level label="1"> <text>The Executive Director is the chief administrative officer of the Authority.</text> </level> <level label="2"> <text>With the approval of the Secretary, the Authority may:</text> <level label="i"> <text>appoint the Executive Director; or</text> </level> <level label="ii"> <text>contract with a private entity to perform the duties of the Executive Director.</text> </level> </level> </level> <level label="b"> <text>The Executive Director serves at the pleasure of the Authority, with the concurrence of the Secretary.</text> </level> <level label="c"> <text>In addition to any other duties set forth in this subtitle, the Executive Director shall:</text> <level label="1"> <text>supervise the administrative affairs and technical activities of the Authority in accordance with its regulations and policies;</text> </level> <level label="2"> <text>attend all meetings of the Authority;</text> </level> <level label="3"> <text>keep minutes of all proceedings of the Authority;</text> </level> <level label="4"> <text>approve all accounts for salaries, per diem payments, and allowable expenses of the Authority, its employees, and its consultants;</text> </level> <level label="5"> <text>approve all expenses incidental to the operation of the Authority; and</text> </level> <level label="6"> <text>perform any other duty that the Authority or the Secretary requires to carry out this subtitle.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-510" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>A member of the Authority may not participate in any decision related to the approval of financial assistance if the member has any interest in:</text> <level label="1"> <text>the applicant for the assistance; or</text> </level> <level label="2"> <text>the financial institution seeking a guaranty or an interest subsidy or both.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-511" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>The Department may contract for and engage the services of a private Maryland corporation to administer some or all of the programs of the Authority.</text> </level> <level label="b"> <text>The Department may:</text> <level label="1"> <text>extend the termination date of a contract in effect and modify that extended contract as needed; and</text> </level> <level label="2"> <text>renew the extended contract for up to one additional 3–year term, and modify that renewed and extended contract as needed.</text> </level> </level> <level label="c"> <text>An extension or renewal contract shall include standards to evaluate the performance of the private contractor in rendering services under the contract.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-512" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>The Authority exercises its powers and performs its duties subject to the authority of the Secretary.</text> </level> <level label="b"> <text>The Authority may:</text> <level label="1"> <text>adopt bylaws for the conduct of its business;</text> </level> <level label="2"> <text>adopt a seal;</text> </level> <level label="3"> <text>maintain offices in the State;</text> </level> <level label="4"> <text>sue and be sued in its own name;</text> </level> <level label="5"> <text>retain consultants;</text> </level> <level label="6"> <text>use the services of governmental units;</text> </level> <level label="7"> <text>contract for and accept, to carry out this subtitle, a loan or grant from the federal government, a political subdivision of the State, or any other source;</text> </level> <level label="8"> <text>purchase, receive, lease as lessee, or otherwise acquire, sell, mortgage, lease as lessor, pledge, administer, dispose of, or otherwise deal with property given as collateral under a loan agreement on the terms and conditions it considers advisable;</text> </level> <level label="9"> <text>adopt regulations necessary to carry out its powers;</text> </level> <level label="10"> <text>acquire or take assignments of loan documents; and</text> </level> <level label="11"> <text>do anything necessary or convenient to carry out its powers.</text> </level> </level> <level label="c"> <text>The Authority shall:</text> <level label="1"> <text>in its internal functions, follow the procedures of the State that govern the purchase of office space, supplies, facilities, materials, equipment, and professional services;</text> </level> <level label="2"> <text>keep proper records of its accounts;</text> </level> <level label="3"> <text>keep separate records for:</text> <level label="i"> <text>the Small Business Development Contract Financing Fund under Part III of this subtitle;</text> </level> <level label="ii"> <text>the Small Business Development Guaranty Fund under Part IV of this subtitle;</text> </level> <level label="iii"> <text>the Equity Participation Investment Program Fund under Part V of this subtitle; and</text> </level> <level label="iv"> <text>the Small Business Surety Bond Fund under Part VI of this subtitle; and</text> </level> </level> <level label="4"> <text>in accordance with § 2.5–109 of this article, submit a report on its condition and operations.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-513" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>In any action, service of process on the Authority shall be made by service on the Executive Director of the Authority.</text> </level> <level label="b"> <text>Service may be made in person or by leaving a copy of the process at the office of the Executive Director with the individual in charge of the office.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-514" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>Notwithstanding § 10–469(e) and (f) of this article or any other law, the following money shall be payable into the funds under this subtitle:</text> <level label="1"> <text>any recovery of investments made under § 10–469 of this article that were funded by a transfer of money from the funds under this subtitle to the Enterprise Fund, including an investment in MMG Ventures LLP; and</text> </level> <level label="2"> <text>any repayment of a grant made under § 10–469 of this article that was funded by a transfer of money from the funds under this subtitle to the Enterprise Fund.</text> </level> </level> <level label="b"> <text>The Authority shall determine the proportion of the recovery or repayment payable under subsection (a) of this section that shall be deposited into each of the funds under this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-515" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>There is a Maryland Small Business Development Financing Fund in the Department.</text> </level> <level label="b"> <text>The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="c"> <text>The State Treasurer shall:</text> <level label="1"> <text>invest the money in the Fund in the same manner as other State money may be invested;</text> </level> <level label="2"> <text>credit any investment earnings to the Fund; and</text> </level> <level label="3"> <text>report each year to the Department on:</text> <level label="i"> <text>the status of the money invested under this subtitle;</text> </level> <level label="ii"> <text>the market value of the assets in the Fund as of the date of the report; and</text> </level> <level label="iii"> <text>the interest received from investments during the period covered by the report.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Fund is the successor of the Small Business Development Contract Financing Fund, the Small Business Development Guaranty Fund, the Equity Participation Investment Incentive Program Fund, and the Small Business Surety Bond Fund established under the Maryland Small Business Development Financing Authority.</text> </level> <level label="2"> <text>All financial assistance transactions and obligations approved by the Maryland Small Business Development Financing Authority shall continue as obligations of the Fund and are authorized under this subtitle.</text> </level> </level> <level label="e"> <text>The Fund consists of:</text> <level label="1"> <text>premiums for guaranteeing loans under this subtitle;</text> </level> <level label="2"> <text>premiums for guaranteeing equity investments under this subtitle;</text> </level> <level label="3"> <text>repayments of principal of and interest on direct loans and equity participation financing made under this subtitle;</text> </level> <level label="4"> <text>proceeds from the sale, disposition, lease, or rental of collateral for direct loans, loan guaranties, or equity participation financing made under this subtitle;</text> </level> <level label="5"> <text>loans and grants from the federal government or a unit or instrumentality of the federal government;</text> </level> <level label="6"> <text>grants and contributions of funds from the State, a political subdivision, or any other source;</text> </level> <level label="7"> <text>premiums for guaranteeing long–term loans under this subtitle;</text> </level> <level label="8"> <text>notwithstanding § 10–469(e) and (f) of this article or any other law, any recovery of investments made under § 10–469 of this article that were funded by a transfer of money from the funds under this subtitle to the Enterprise Fund, including an investment in MMG Ventures LLP;</text> </level> <level label="9"> <text>notwithstanding § 10–469(e) and (f) of this article or any other law, any repayment of a grant made under § 10–469 of this article that was funded by a transfer of money from the funds under this subtitle to the Enterprise Fund;</text> </level> <level label="10"> <text>money the State appropriates to the Fund;</text> </level> <level label="11"> <text>money made available to the Fund through federal programs or private contributions;</text> </level> <level label="12"> <text>premiums, fees, royalties, and repayments of investments made under the terms of bonding assistance and equity participation financing; and</text> </level> <level label="13"> <text>all other receipts of the Department under this subtitle.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-517" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>In this part, “Program” means the Small Business Development Contract Financing Program.</text> </section> <section article="gec" article_name="Economic Development" number="5-518" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>There is a Small Business Development Contract Financing Program within the Fund.</text> </section> <section article="gec" article_name="Economic Development" number="5-519" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>The Authority may use the Fund for:</text> <level label="1"> <text>loan guaranties made under § 5–520(a) of this subtitle;</text> </level> <level label="2"> <text>equity investment guaranties made under § 5–520(b) of this subtitle;</text> </level> <level label="3"> <text>direct loans made under § 5–520(c) of this subtitle; and</text> </level> <level label="4"> <text>expenses for administrative, legal, actuarial, and other services.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-520" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <level label="1"> <text>The Authority may use the Fund to guarantee a loan made to an applicant only if:</text> <level label="i"> <text>the applicant meets the requirements of this part;</text> </level> <level label="ii"> <text>the maximum amount payable by the Authority under the guaranty does not exceed $3,000,000; and</text> </level> <level label="iii"> <text>the guaranteed loan is to be used for:</text> <level label="1"> <text>working capital; or</text> </level> <level label="2"> <text>equipment needed to perform the contract, the cost of which can be repaid from contract proceeds, if the Authority has entered into an agreement with the applicant to secure the loan or guaranty.</text> </level> </level> </level> <level label="2"> <text>A guaranty made by the Authority may not exceed the term of the contract, unless the Authority determines that a longer term better serves the purposes of this subtitle.</text> </level> </level> <level label="b"> <level label="1"> <text>The Authority may use the Fund to guarantee a person’s proposed equity investment in the applicant only if:</text> <level label="i"> <text>the applicant meets the requirements of this part;</text> </level> <level label="ii"> <text>the amount of the equity investment to be guaranteed does not exceed the lesser of:</text> <level label="1"> <text>10% of the person’s equity investment in the applicant; or</text> </level> <level label="2"> <text>$250,000; and</text> </level> </level> <level label="iii"> <text>the equity investment to be guaranteed is to be used for:</text> <level label="1"> <text>working capital; or</text> </level> <level label="2"> <text>equipment needed to perform the contract, the cost of which can be repaid from contract proceeds, if the Authority has entered into an agreement with the applicant to secure the guaranty.</text> </level> </level> </level> <level label="2"> <text>The Authority may not guarantee the equity investment of a person who:</text> <level label="i"> <text>previously held an equity investment in the applicant;</text> </level> <level label="ii"> <text>previously participated in the management of the applicant; or</text> </level> <level label="iii"> <text>in any other manner is related to:</text> <level label="1"> <text>the applicant; or</text> </level> <level label="2"> <text>any of the current stockholders, officers, or management personnel of the applicant.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <text>The Authority may use the Fund to lend money to an applicant only if:</text> <level label="i"> <text>the applicant meets the requirements of this part;</text> </level> <level label="ii"> <text>the applicant is unable to obtain money on reasonable terms through normal lending channels from another source;</text> </level> <level label="iii"> <text>the loan does not exceed $3,000,000; and</text> </level> <level label="iv"> <text>the loan is to be used for:</text> <level label="1"> <text>working capital; or</text> </level> <level label="2"> <text>equipment needed to perform the contract, if the contract proceeds can repay the cost of the equipment and if the Authority has entered into an agreement with the applicant to secure the loan.</text> </level> </level> </level> <level label="2"> <text>A loan that the Authority makes shall mature not later than the term of the contract, unless the Authority finds that a longer term better serves the purposes of this part.</text> </level> </level> <level label="d"> <text>In providing financial assistance under this section, the Authority shall recognize the need to serve applicants from all political subdivisions in the State.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-521" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>If the applicant is an individual, to qualify for financial assistance under this part the applicant shall satisfy the Authority that:</text> <level label="1"> <text>the applicant is of good moral character;</text> </level> <level label="2"> <text>the applicant has a reputation for financial responsibility, as determined from creditors, employers, and other individuals who have personal knowledge of the applicant;</text> </level> <level label="3"> <text>the applicant is a resident of the State or the principal place of business of the applicant is in the State; and</text> </level> <level label="4"> <text>the applicant is unable to obtain adequate business financing on reasonable terms through normal lending channels because the applicant:</text> <level label="i"> <text>belongs to a group that historically has been deprived of access to normal economic or financial resources;</text> </level> <level label="ii"> <text>has a documented disability;</text> </level> <level label="iii"> <text>has any other social or economic impediment that is beyond the control of the applicant but that does not limit the ability of the applicant to perform the contract or other activity for which the applicant would be receiving financial assistance, including:</text> <level label="1"> <text>the lack of formal education or financial capacity; or</text> </level> <level label="2"> <text>geographical or regional economic distress; or</text> </level> </level> <level label="iv"> <text>does not meet the established credit criteria of at least one financial institution.</text> </level> </level> </level> <level label="b"> <text>If the applicant is a business enterprise that is not a sole proprietorship, to qualify for financial assistance under this part at least 70% of the business enterprise shall be owned by individuals who meet the qualifications for an individual applicant under subsection (a) of this section.</text> </level> <level label="c"> <text>An applicant for a loan guaranty shall have applied for and been denied a loan by a financial institution.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-522" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>To apply for financial assistance from the Fund under § 5–520 of this subtitle, an applicant shall submit to the Authority an application on the form that the Authority provides with the information the Authority requires.</text> </level> <level label="b"> <text>The Authority may require an applicant to provide an audited balance sheet before the Authority approves or denies the application.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-523" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>The Authority may set the terms and conditions for a loan guaranty made under § 5–520(a) of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>If the Authority decides to lend money from the Fund to an applicant under § 5–520(c) of this subtitle, the Authority shall prepare loan documents that include:</text> <level label="i"> <text>the interest rate on the loan that equals the market rate for a conventional loan of comparable risk unless the Authority determines that a lower rate better serves the purposes of this subtitle;</text> </level> <level label="ii"> <text>a disbursement schedule that provides enough money to the applicant when the applicant needs it to perform the contract;</text> </level> <level label="iii"> <text>a requirement that the applicant and the Authority co–sign each request for an advance of money before release of the money; and</text> </level> <level label="iv"> <text>provisions for repayment of the loan.</text> </level> </level> <level label="2"> <text>The loan documents may include any other provision that the Authority determines is necessary to secure the loan, including an assignment of or a lien on payment under the contract.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-524" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>A person may not knowingly make or cause to be made a false statement or report in an application or document submitted to the Authority under this part.</text> </level> <level label="b"> <text>A person may not knowingly make or cause to be made a false statement or report to influence an action of the Authority under this part:</text> <level label="1"> <text>on an application for financial assistance; or</text> </level> <level label="2"> <text>affecting financial assistance whether or not the assistance has already been extended.</text> </level> </level> <level label="c"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-527" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>In this part, “Program” means the Small Business Development Guaranty Program.</text> </section> <section article="gec" article_name="Economic Development" number="5-528" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>There is a Small Business Development Guaranty Program within the Fund.</text> </section> <section article="gec" article_name="Economic Development" number="5-529" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>The Authority may use the Fund for:</text> <level label="1"> <text>guaranty payments made under § 5–530(a) of this subtitle;</text> </level> <level label="2"> <text>interest subsidy payments under § 5–530(b) of this subtitle; and</text> </level> <level label="3"> <text>expenses for administrative, legal, actuarial, and other services.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-530" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <level label="1"> <text>The Authority may use the Fund to guarantee up to 80% of the principal of and interest on a long–term loan made by a financial institution to an applicant only if:</text> <level label="i"> <text>the applicant meets the requirements under § 5–531 of this subtitle and has not violated § 5–534 of this subtitle;</text> </level> <level label="ii"> <text>the loan amount is $5,000 or more and the maximum amount payable by the Authority under the guaranty does not exceed $3,000,000;</text> </level> <level label="iii"> <text>the loan is used for:</text> <level label="1"> <text>working capital;</text> </level> <level label="2"> <text>refinancing the applicant’s existing debt;</text> </level> <level label="3"> <text>acquisition and installation of equipment;</text> </level> <level label="4"> <text>making necessary improvements to real property that the applicant leases or owns in fee simple; or</text> </level> <level label="5"> <text>acquiring real property that the applicant will own in fee simple if the property is to be used in the applicant’s trade or business for which the guaranty is sought and the financial institution or the Authority places a lien on the property;</text> </level> </level> <level label="iv"> <text>the loan matures within 10 years after the closing date of the loan; and</text> </level> <level label="v"> <text>the interest rate does not exceed the monthly weighted average of the prime lending rate prevailing in Baltimore City on unsecured commercial loans, plus 2%, as determined by the Authority.</text> </level> </level> <level label="2"> <text>The Authority may authorize the provision of a guaranty under this section in the following forms:</text> <level label="i"> <text>an irrevocable letter of credit;</text> </level> <level label="ii"> <text>an official treasurer’s check;</text> </level> <level label="iii"> <text>funds on deposit in an escrow or other depository account; or</text> </level> <level label="iv"> <text>any other legal instrument promising a financial institution restitution or reimbursement for its loan losses, within the limits of the guaranty.</text> </level> </level> <level label="3"> <text>Any terms and conditions governing the instruments described under paragraph (2) of this subsection may not be so onerous as to discourage the financial institution from offering the loan.</text> </level> <level label="4"> <level label="i"> <text>The Authority may only approve a guaranty under this section if the Authority determines that the loan to be guaranteed will have a substantial economic impact.</text> </level> <level label="ii"> <text>To determine the economic impact of a loan, the Authority may consider:</text> <level label="1"> <text>the amount of the guaranty obligation;</text> </level> <level label="2"> <text>the terms of the loan to be guaranteed;</text> </level> <level label="3"> <text>the number of new jobs that the loan will create; and</text> </level> <level label="4"> <text>any other factor that the Authority considers relevant.</text> </level> </level> </level> </level> <level label="b"> <level label="1"> <text>In addition to a loan guaranty, the Authority may provide an interest subsidy for the benefit of the applicant.</text> </level> <level label="2"> <text>The subsidy:</text> <level label="i"> <text>may be for the life of the loan;</text> </level> <level label="ii"> <text>may not exceed 4%;</text> </level> <level label="iii"> <text>shall be payable quarterly; and</text> </level> <level label="iv"> <text>shall be made to the financial institution that makes the loan that the Authority guarantees.</text> </level> </level> <level label="3"> <level label="i"> <text>The subsidy may not exceed the difference between:</text> <level label="1"> <text>the interest rate on the guaranteed loan; and</text> </level> <level label="2"> <text>the discount interest rate that the Federal Reserve Bank uses.</text> </level> </level> <level label="ii"> <text>The interest rate may not exceed the monthly weighted average of the prime lending rate that prevails in Baltimore City on unsecured commercial loans, as the Authority determines as of the date of closing, plus 2%.</text> </level> </level> <level label="4"> <text>The subsidy may not be paid during any period in which the loan is in default.</text> </level> </level> <level label="c"> <text>In providing financial assistance under this section, the Authority shall recognize the need to serve applicants from all political subdivisions in the State.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-531" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>If the applicant is a sole proprietor, to qualify for financial assistance under this part the applicant shall satisfy the Authority that:</text> <level label="1"> <text>the applicant is of good moral character;</text> </level> <level label="2"> <text>the applicant has a reputation for financial responsibility, as determined from creditors, employers, and other individuals who have personal knowledge of the applicant;</text> </level> <level label="3"> <text>the applicant is a resident of the State or the principal place of business of the applicant is in the State; and</text> </level> <level label="4"> <text>the applicant is unable to obtain adequate business financing on reasonable terms through normal lending channels because the applicant:</text> <level label="i"> <text>belongs to a group that historically has been deprived of access to normal economic or financial resources;</text> </level> <level label="ii"> <text>has a documented disability;</text> </level> <level label="iii"> <text>has any other social or economic impediment that is beyond the control of the applicant, but that does not limit the ability of the applicant to perform the contract or other activity for which the applicant would be receiving financial assistance, including:</text> <level label="1"> <text>the lack of formal education or financial capacity; or</text> </level> <level label="2"> <text>geographical or regional economic distress; or</text> </level> </level> <level label="iv"> <text>does not meet the established credit criteria of at least one financial institution.</text> </level> </level> </level> <level label="b"> <text>If the applicant is not a sole proprietorship, to qualify for financial assistance under this part at least 70% of the business enterprise shall be owned by individuals who meet the qualifications for an individual applicant under subsection (a) of this section.</text> </level> <level label="c"> <text>An applicant for a loan guaranty shall have applied for and been denied a loan by a financial institution.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-532" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>To apply for financial assistance from the Fund, a financial institution shall submit to the Authority an application on the form that the Authority provides with the information the Authority requires.</text> </level> <level label="b"> <text>The Authority may require an applicant to provide an audit report and balance sheet certified by an independent certified public accountant in accordance with generally accepted accounting principles before the Authority approves or denies the application.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-533" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>A guaranty shall contain terms and conditions that the Authority determines to be appropriate.</text> </section> <section article="gec" article_name="Economic Development" number="5-534" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>A person may not knowingly make or cause to be made a false statement or report in an application or document submitted to the Authority under this part.</text> </level> <level label="b"> <text>A person may not knowingly make or cause to be made a false statement or report to influence an action of the Authority under this part:</text> <level label="1"> <text>on an application for financial assistance; or</text> </level> <level label="2"> <text>affecting financial assistance whether or not the assistance has already been extended.</text> </level> </level> <level label="c"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-535" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>If an applicant or financial institution violates any provision of the loan documents or ceases to meet the requirements of this part, on reasonable notice to the applicant or financial institution, the Authority may:</text> <level label="1"> <text>withhold from the applicant further loan payments until the applicant complies with the documents or requirements;</text> </level> <level label="2"> <text>withhold from the financial institution further interest subsidy payments until the financial institution complies with the loan documents or requirements; and</text> </level> <level label="3"> <text>exercise any other remedy for which the loan documents provide.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-538" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Enterprise” means a business entity proposing to carry on a business in the State that meets the requirements of § 5–521 of this subtitle.</text> </level> <level label="2"> <text>“Enterprise” includes:</text> <level label="i"> <text>a sole proprietorship;</text> </level> <level label="ii"> <text>a partnership;</text> </level> <level label="iii"> <text>a limited liability corporation;</text> </level> <level label="iv"> <text>a limited partnership;</text> </level> <level label="v"> <text>a corporation; or</text> </level> <level label="vi"> <text>a joint venture.</text> </level> </level> </level> <level label="c"> <text>“Equity participation financing” includes investment or guaranty of investment in an enterprise.</text> </level> <level label="d"> <text>“Existing business” means a business whose board of directors or owners approve the sale of the business to an enterprise receiving equity participation financing.</text> </level> <level label="e"> <text>“Program” means the Equity Participation Investment Program.</text> </level> <level label="f"> <text>“Qualified security” means:</text> <level label="1"> <text>a note, bond, debenture, or other evidence of indebtedness;</text> </level> <level label="2"> <text>stock or other form of equity participation;</text> </level> <level label="3"> <text>a certificate of interest or participation in a profit–sharing agreement;</text> </level> <level label="4"> <text>an investment contract;</text> </level> <level label="5"> <text>a certificate of deposit for a security;</text> </level> <level label="6"> <text>a certificate of interest or participation in a patent or patent application or in royalty or other payments under a patent or patent application; or</text> </level> <level label="7"> <text>an interest or instrument commonly known as a “security” or a certificate for, receipt for, guaranty of, or option, warrant, or right to subscribe to or purchase a qualified security.</text> </level> </level> <level label="g"> <text>“Small business” means a business that is classified as a small business under the U.S. Small Business Administration size standards.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-539" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>The General Assembly finds that:</text> <level label="1"> <text>small businesses have proven to be a fast growing and reliable form of successful business expansion and successful new business creation;</text> </level> <level label="2"> <text>small businesses play a major role in the economy of the State and have been a continuing source of increasing tax revenues and job opportunities;</text> </level> <level label="3"> <text>the growth of small businesses should be encouraged and should be an integral part of the State’s economic development effort;</text> </level> <level label="4"> <text>socially or economically disadvantaged individuals often lack adequate capital and are unable to obtain financing from financial institutions or venture capital firms to begin and develop a small business, or to purchase an existing business; and</text> </level> <level label="5"> <text>promoting the creation and viability of small businesses and the purchase of existing businesses by socially or economically disadvantaged individuals is in the public interest.</text> </level> </level> <level label="b"> <text>The purposes of the Equity Participation Investment Program are to:</text> <level label="1"> <text>encourage and help socially or economically disadvantaged individuals to create and develop small businesses and acquire existing businesses in the State; and</text> </level> <level label="2"> <text>assist small businesses that, because they do not meet the established credit criteria of financial institutions, cannot obtain adequate business financing on reasonable terms through normal financing channels.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-540" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>There is an Equity Participation Investment Program in the Fund.</text> </section> <section article="gec" article_name="Economic Development" number="5-541" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>The Authority may:</text> <level label="1"> <text>provide equity participation financing to help socially or economically disadvantaged individuals in the State create and develop small businesses and acquire existing businesses;</text> </level> <level label="2"> <text>buy, hold, and sell qualified securities;</text> </level> <level label="3"> <text>prepare, publish, and distribute technical studies, reports, and other materials with or without charge; and</text> </level> <level label="4"> <text>provide and pay for advisory services and technical assistance that are necessary or desirable to carry out the Program.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-542" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>The Authority shall use the Fund to:</text> <level label="1"> <text>purchase qualified securities that an enterprise issues to provide equity participation financing as the Program allows;</text> </level> <level label="2"> <text>provide guaranties of investments to expand the capital resources of enterprises;</text> </level> <level label="3"> <text>purchase advisory services and technical assistance consistent with the Program;</text> </level> <level label="4"> <text>purchase securities in which a fiduciary of the State may lawfully invest;</text> </level> <level label="5"> <text>provide equity participation financing as the Program allows; and</text> </level> <level label="6"> <text>pay for administrative, legal, and actuarial services that relate to the Program.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-543" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>The Authority may provide equity participation financing under the Program only after the enterprise submits an application on the form that the Authority provides with the information the Authority requires.</text> </section> <section article="gec" article_name="Economic Development" number="5-544" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <level label="1"> <text>Under the Program the Authority may not:</text> <level label="i"> <text>own securities representing more than 49% of the voting stock of a small business or own an interest greater than 49% in a small business; or</text> </level> <level label="ii"> <text>own securities representing more than 49% of the voting stock of an enterprise acquiring an existing business or own an interest greater than 49% in an enterprise acquiring an existing business.</text> </level> </level> <level label="2"> <text>The amount of the Authority’s equity participation financing in an enterprise may not exceed $3,000,000.</text> </level> <level label="3"> <text>Before providing equity participation financing, the Authority shall find that there is a reasonable probability that the Authority will recover its initial investment and an adequate return on investment from the equity participation financing.</text> </level> <level label="4"> <text>The Authority’s investment shall be recoverable within 7 years after the equity participation financing.</text> </level> <level label="5"> <text>The Authority’s recovery shall be the greater of:</text> <level label="i"> <text>the current value of the percentage of the equity investment in the enterprise; or</text> </level> <level label="ii"> <text>the amount of the initial investment in the enterprise.</text> </level> </level> <level label="6"> <text>If there is a dispute between the borrower and the Authority as to the value of the business entity at the time of recovery, the value shall be determined after obtaining at least one independent appraisal of the value from an appraiser selected from a list of at least three appraisers supplied by the Authority.</text> </level> </level> <level label="b"> <text>When an enterprise applies to the Authority for equity participation financing to acquire an existing business, an enterprise or its principals shall have:</text> <level label="1"> <text>an equity investment equal to at least 5% of the total cost of acquisition; and</text> </level> <level label="2"> <text>at least 3 years of successful experience with demonstrated achievements and management responsibilities.</text> </level> </level> <level label="c"> <text>The Authority may provide equity participation financing for the acquisition of an existing business if the existing business:</text> <level label="1"> <text>has been in existence for at least 5 years;</text> </level> <level label="2"> <text>has been profitable for at least 2 of the previous 3 years;</text> </level> <level label="3"> <text>has sufficient cash flow to service the debt and ensure adequate return of the Authority’s investment;</text> </level> <level label="4"> <text>has the capacity for growth and job creation;</text> </level> <level label="5"> <text>has its principal place of business in the State; and</text> </level> <level label="6"> <text>has a strong customer base.</text> </level> </level> <level label="d"> <text>If the applicant enterprise is a sole proprietorship, to qualify for financial assistance under this part, the applicant shall satisfy the Authority that:</text> <level label="1"> <text>the applicant is of good moral character;</text> </level> <level label="2"> <text>the applicant has a reputation for financial responsibility, as determined from creditors, employers, and other individuals who have personal knowledge of the applicant;</text> </level> <level label="3"> <text>the applicant is a resident of the State or the principal place of business of the applicant is in the State; and</text> </level> <level label="4"> <text>the applicant is unable to obtain adequate business financing on reasonable terms through normal lending channels because the applicant:</text> <level label="i"> <text>belongs to a group that historically has been deprived of access to normal economic or financial resources;</text> </level> <level label="ii"> <text>has a documented disability;</text> </level> <level label="iii"> <text>has any other social or economic impediment that is beyond the control of the applicant, but that does not limit the ability of the applicant to perform the contract or other activity for which the applicant would be receiving financial assistance, including:</text> <level label="1"> <text>the lack of formal education or financial capacity; or</text> </level> <level label="2"> <text>geographical or regional economic distress; or</text> </level> </level> <level label="iv"> <text>does not meet the established credit or investment criteria of at least one financial institution.</text> </level> </level> </level> <level label="e"> <text>If the applicant enterprise is not a sole proprietorship, to qualify for financial assistance under this part, at least 51% of the enterprise shall be owned by individuals who meet the qualifications for applicants under subsection (d) of this section.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-545" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>The liability of the State and of the Authority in providing equity participation financing is limited to investments under the Program.</text> </section> <section article="gec" article_name="Economic Development" number="5-548" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Principal” means a small business entity that has assets, income, or employees that do not exceed limits that the Authority sets by regulation.</text> </level> <level label="c"> <text>“Program” means the Small Business Surety Bond Program.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-549" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>There is a Small Business Surety Bond Program within the Fund.</text> </section> <section article="gec" article_name="Economic Development" number="5-550" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>In administering the Program, the Authority may:</text> <level label="1"> <text>use the services of other governmental units;</text> </level> <level label="2"> <text>contract for and accept loans and grants from the federal government, the State government, or a local government and their units; and</text> </level> <level label="3"> <text>on the terms and conditions it considers advisable:</text> <level label="i"> <text>acquire, manage, operate, dispose of, or otherwise deal with property;</text> </level> <level label="ii"> <text>take assignments of rentals and leases; and</text> </level> <level label="iii"> <text>make contracts, leases, agreements, and arrangements that are necessary or incidental to the performance of its duties.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-551" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>The Authority may:</text> <level label="1"> <text>prescribe or approve the form of and terms and conditions in applications, guaranty agreements, or any other documents entered into by the Authority, principals, or sureties under the Program;</text> </level> <level label="2"> <text>acquire or take assignments of documents executed, obtained, or delivered in connection with any assistance the Authority provides under the Program;</text> </level> <level label="3"> <text>set and collect premiums, fees, charges, costs, and expenses in connection with any assistance the Authority provides under the Program;</text> </level> <level label="4"> <text>adopt regulations to carry out the Program; and</text> </level> <level label="5"> <text>do anything necessary or convenient to carry out its powers and the purposes of the Program.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-552" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>The Authority may guarantee a surety up to the lesser of 90% or $3,000,000 of its loss under a bid bond, payment bond, or performance bond on a contract.</text> </level> <level label="b"> <text>The term of a guaranty under this part may not exceed the contract term, including:</text> <level label="1"> <text>the maintenance or warranty period required by the contract; and</text> </level> <level label="2"> <text>the period during which the surety may be liable for latent defects.</text> </level> </level> <level label="c"> <text>The Authority may vary the terms and conditions of a guaranty based on:</text> <level label="1"> <text>the Authority’s history of experience with a surety; and</text> </level> <level label="2"> <text>any other factor the Authority considers relevant.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-553" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>The Authority may execute and perform a bid bond, performance bond, and payment bond as a surety for the benefit of a principal in connection with a contract.</text> </level> <level label="b"> <level label="1"> <text>This subsection does not apply if the sources of funding for the bonds are grants.</text> </level> <level label="2"> <text>The bonds may not exceed $5,000,000 each.</text> </level> </level> <level label="c"> <text>Bonds are subject to the approval of the Authority based on the bond worthiness of the principal.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-554" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>The Authority may only approve a guaranty or a bond under this part if the Authority determines that the contract, for which a bond is sought to be guaranteed or issued, will have a substantial economic impact.</text> </level> <level label="b"> <text>To determine the economic impact of a contract, the Authority may consider:</text> <level label="1"> <text>the amount of the guaranty obligation;</text> </level> <level label="2"> <text>the terms of the bond to be guaranteed;</text> </level> <level label="3"> <text>the number of new jobs that the contract to be bonded will create; and</text> </level> <level label="4"> <text>any other factor that the Authority considers relevant.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-555" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <text>The Authority may establish a surety bonding line to issue or guarantee multiple bonds to a principal within preapproved terms, conditions, and limitations.</text> </section> <section article="gec" article_name="Economic Development" number="5-556" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>To qualify for financial assistance under this part the principal shall satisfy the Authority that the principal:</text> <level label="1"> <text>is of good moral character or is owned by individuals of good moral character;</text> </level> <level label="2"> <text>as determined from creditors, employers, and other individuals who have personal knowledge, is an individual with a reputation for financial responsibility or is owned by individuals, a majority of whom have a reputation for financial responsibility;</text> </level> <level label="3"> <text>is a resident of the State or the principal place of business of the applicant is in the State; and</text> </level> <level label="4"> <text>is unable to obtain adequate bonding on reasonable terms through normal channels.</text> </level> </level> <level label="b"> <text>To qualify for financial assistance under this part the principal shall certify to the Authority, and the Authority shall be satisfied, that:</text> <level label="1"> <text>a bond is required to bid on a contract or to serve as prime contractor or subcontractor;</text> </level> <level label="2"> <text>a bond cannot be obtained on reasonable terms and conditions without assistance from the Program; and</text> </level> <level label="3"> <text>the principal will not subcontract more than 75% of the monetary value of the contract.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-557" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>To apply for financial assistance from the Program under this part, a principal and, if applicable, a surety shall submit to the Authority an application on the form that the Authority provides with the information the Authority requires.</text> </level> <level label="b"> <text>The Authority may require an applicant to provide an audited balance sheet before the Authority approves or denies the application.</text> </level> <level label="c"> <text>The Authority may not approve a guaranty or bond under this part for a principal that has defaulted on a loan or guaranty from the Authority unless:</text> <level label="1"> <text>2 years have passed since the time of the default; and</text> </level> <level label="2"> <text>the principal has cured any default in any financing program administered by the Department.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-558" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>In its sole discretion, the Authority may set:</text> <level label="1"> <text>the premiums and fees for providing bonding assistance under the Program; and</text> </level> <level label="2"> <text>the terms and conditions when the premiums and fees are payable.</text> </level> </level> <level label="b"> <text>The premiums and fees may vary in amount among transactions and at different stages of a transaction.</text> </level> <level label="c"> <text>A determination by the Authority on premiums and fees remains effective for as long as the bonding assistance provided by the Authority is in effect.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-559" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="5" subtitle_name="Maryland Small Business Development Financing Authority"> <level label="a"> <text>A person may not knowingly make or cause to be made a false statement or report in an application or document submitted to the Authority under this part.</text> </level> <level label="b"> <text>A person may not knowingly make or cause to be made a false statement or report to influence an action of the Authority under this part:</text> <level label="1"> <text>on an application for assistance; or</text> </level> <level label="2"> <text>affecting bonding assistance whether or not the assistance has been extended.</text> </level> </level> <level label="c"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $50,000 or both.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-701" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="7" subtitle_name="Enterprise Zones"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Area” means a geographic area in one or more political subdivisions in the State described by a closed perimeter boundary.</text> </level> <level label="c"> <text>“Business entity” means a person that operates or conducts a trade or business.</text> </level> <level label="d"> <text>“Enterprise zone” means an area:</text> <level label="1"> <text>that meets the requirements of § 5–704(a) of this subtitle and is designated as an enterprise zone by the Secretary under § 5–704(b) of this subtitle;</text> </level> <level label="2"> <level label="i"> <text>designated as a transit–oriented development under § 7–101 of the Transportation Article;</text> </level> <level label="ii"> <text>that is served by a rail transit station that receives at least hourly service on average from 8:00 a.m. until 6:00 p.m. Monday through Friday; and</text> </level> <level label="iii"> <text>designated as an enterprise zone in accordance with § 5–709 of this subtitle;</text> </level> </level> <level label="3"> <text>designated as an enterprise zone by the United States government under 42 U.S.C. §§ 11501 through 11505; or</text> </level> <level label="4"> <text>designated as an empowerment zone or enterprise community by the United States government under 26 U.S.C. §§ 1391 through 1397F.</text> </level> </level> <level label="e"> <text>“Focus area” means an area that meets the requirements of § 5-706 of this subtitle and is designated as a focus area by the Secretary under § 5-706 of this subtitle.</text> </level> <level label="f"> <text>“Political subdivision” means a county or municipal corporation.</text> </level> <level label="g"> <text>“Submission date” means April 15 or October 15.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-702" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="7" subtitle_name="Enterprise Zones"> <level label="a"> <text>The purpose of the enterprise zones authorized under this subtitle is to attract, retain, and encourage commercial development in economically distressed areas of the State, in partnership with political subdivisions, by incentivizing capital investment and job creation through real property and income tax credits.</text> </level> <level label="b"> <text>Subject to § 9–103 of the Tax – Property Article, a business entity that owns, operates, develops, constructs, or rehabilitates property intended for use primarily as single or multifamily residential property located in an enterprise zone may not benefit from an incentive or initiative under this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-703" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="7" subtitle_name="Enterprise Zones"> <level label="a"> <text>The following political subdivisions may apply to the Secretary to designate an enterprise zone:</text> <level label="1"> <text>a political subdivision for an area within that political subdivision;</text> </level> <level label="2"> <text>with the prior consent of the municipal corporation, a county on behalf of a municipal corporation for an area in the municipal corporation; or</text> </level> <level label="3"> <text>two or more political subdivisions jointly for an area astride their common boundaries.</text> </level> </level> <level label="b"> <text>The application shall:</text> <level label="1"> <text>be in the form and manner and contain the information that the Secretary requires by regulation;</text> </level> <level label="2"> <text>contain sufficient information to allow the Secretary to determine if the proposed enterprise zone meets the criteria in § 5-704 of this subtitle;</text> </level> <level label="3"> <text>be submitted for a political subdivision by its chief elected officer, or if none, its governing body;</text> </level> <level label="4"> <text>state whether the political subdivision has examined the feasibility of creating educational or training opportunities for employers and employees of business entities located or to be located in the proposed enterprise zone; and</text> </level> <level label="5"> <text>state the standards established by the political subdivision that a business entity shall meet before receiving the incentives and initiatives under § 5-707 of this subtitle.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-704" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="7" subtitle_name="Enterprise Zones"> <level label="a"> <level label="1"> <text>The Secretary may designate an area as an enterprise zone only if the area:</text> <level label="i"> <text>is in a priority funding area or in a qualified opportunity zone under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County or meets an exception under Title 5, Subtitle 7B of the State Finance and Procurement Article; and</text> </level> <level label="ii"> <text>satisfies at least one of the requirements specified in paragraph (2) of this subsection.</text> </level> </level> <level label="2"> <text>An area may be designated as an enterprise zone if:</text> <level label="i"> <text>the average rate of unemployment in the area, or within a reasonable proximity to the area but in the same county, for the most recent 18–month period for which data are available is at least 150% of the greater of the average rate of unemployment in either the State or the United States during that period;</text> </level> <level label="ii"> <text>the population in the area, or within a reasonable proximity to the area but in the same county, qualifies the area as a low–income poverty area;</text> </level> <level label="iii"> <text>at least 70% of the families in the area, or within a reasonable proximity to the area but in the same county, have incomes that are less than 80% of the median family income in the political subdivision that contains the area; or</text> </level> <level label="iv"> <text>the population in the area, or within a reasonable proximity to the area but in the same county, decreased by 10% between the most recent two censuses, and the political subdivision can demonstrate to the Secretary’s satisfaction that:</text> <level label="1"> <text>chronic abandonment or demolition of property is occurring in the area; or</text> </level> <level label="2"> <text>substantial property tax arrearages exist in the area.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>In determining if an area meets the requirements of this subsection, the Secretary may consider the most recent census data provided by the United States Bureau of the Census or any other reliable data that is acceptable to the Secretary.</text> </level> <level label="ii"> <text>Before considering data other than the most recent census in making a determination under paragraph (2)(ii) of this subsection, the Secretary shall adopt regulations specifying alternative data that are satisfactory to the Secretary.</text> </level> </level> <level label="4"> <text>The Secretary:</text> <level label="i"> <text>shall adopt regulations governing the evaluation and prioritization of applications for the designation of new enterprise zones under this section and the expansion of existing enterprise zones under § 5–705 of this subtitle; and</text> </level> <level label="ii"> <text>may adopt regulations necessary and appropriate to carry out this subtitle.</text> </level> </level> <level label="5"> <text>Before designating an enterprise zone, the Secretary shall consult with the appropriate advisors.</text> </level> </level> <level label="b"> <level label="1"> <text>Within 60 days after a submission date, the Secretary may designate one or more enterprise zones from among the areas described in the applications timely submitted.</text> </level> <level label="2"> <text>The designation of an area as an enterprise zone is effective for 10 years.</text> </level> <level label="3"> <text>The Secretary may not designate more than six enterprise zones in a calendar year.</text> </level> <level label="4"> <text>A county may not receive more than two enterprise zones in a calendar year.</text> </level> </level> <level label="c"> <text>The designation of the Secretary is final.</text> </level> <level label="d"> <text>At any time, a political subdivision may reapply to the Secretary to designate as an enterprise zone an area that is not designated.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-705" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="7" subtitle_name="Enterprise Zones"> <level label="a"> <level label="1"> <text>A political subdivision may apply to the Secretary to expand an existing enterprise zone in the same manner as the political subdivision would apply to designate a new enterprise zone.</text> </level> <level label="2"> <text>The Secretary may grant an expansion of an enterprise zone into an area that meets the requirements of § 5–704 of this subtitle.</text> </level> <level label="3"> <text>For purposes of § 5–704(b) of this subtitle, an expansion of an enterprise zone that does not exceed 25% of the existing geographic area of the enterprise zone does not count towards the limit on the number of enterprise zones that:</text> <level label="i"> <text>the Secretary may designate in a calendar year; or</text> </level> <level label="ii"> <text>a county may receive in a calendar year.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The Secretary may grant one extraordinary expansion of an enterprise zone in the State each calendar year for an area that:</text> <level label="i"> <text>meets the requirements of § 5–704 of this subtitle; and</text> </level> <level label="ii"> <text>in the determination of the Secretary, has suffered a significant loss of economic base or merits inclusion in an enterprise zone for a compelling economic reason.</text> </level> </level> <level label="2"> <text>For purposes of § 5–704(b) of this subtitle, an extraordinary expansion of an enterprise zone does not count towards the limit on the number of enterprise zones that:</text> <level label="i"> <text>the Secretary may designate in a calendar year; or</text> </level> <level label="ii"> <text>a county may receive in a calendar year.</text> </level> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-706" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="7" subtitle_name="Enterprise Zones"> <level label="a"> <text>A political subdivision may request the Secretary to designate all or part of an enterprise zone as a focus area for the lesser of:</text> <level label="1"> <text>5 years; or</text> </level> <level label="2"> <text>the remainder of the 10-year term of the applicable enterprise zone.</text> </level> </level> <level label="b"> <text>The request may be made on or before a submission date when the political subdivision applies for the designation of a new enterprise zone or after the Secretary has designated an enterprise zone.</text> </level> <level label="c"> <text>The Secretary may grant the request if the area is located in an enterprise zone and meets at least three of the following criteria:</text> <level label="1"> <text>the average unemployment rate in the area, or within a reasonable proximity to the area but in the same county, for the most recent 18-month period for which data are available is at least 150% of the greater of the average rate of unemployment in either the State or the United States during that same period;</text> </level> <level label="2"> <text>the population in the area, or within a reasonable proximity to the area but in the same county, has an incidence of poverty that is at least 150% of the national average;</text> </level> <level label="3"> <text>the crime rate in the area, or within a reasonable proximity to the area but in the same county, is at least 150% of the crime rate in the political subdivision where the area is located;</text> </level> <level label="4"> <text>the percentage of substandard housing in the area, or within a reasonable proximity to the area but in the same county, is at least 200% of the percentage of housing units in the State that are substandard, according to data from the United States Bureau of the Census or other State or federal government data the Secretary considers appropriate; or</text> </level> <level label="5"> <text>at least 20% of the square footage of commercial property in the area, or within a reasonable proximity to the area but within the same county, is vacant, according to data from the United States Bureau of the Census or other State or federal government data the Secretary considers appropriate.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-707" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="7" subtitle_name="Enterprise Zones"> <level label="a"> <text>To the extent provided for in this section, a business entity is entitled to:</text> <level label="1"> <text>the special property tax credit in § 9–103 of the Tax – Property Article;</text> </level> <level label="2"> <text>the income tax credits in § 10–702 of the Tax – General Article; and</text> </level> <level label="3"> <text>consideration for financial assistance from programs in Subtitle 1 of this title.</text> </level> </level> <level label="b"> <text>A business entity that moves into or locates in an enterprise zone on or after the date that the enterprise zone is designated under § 5–704 of this subtitle may benefit from the incentives and initiatives in this section if:</text> <level label="1"> <text>the business entity meets the requirements and conditions of the Code section applicable to each incentive or initiative;</text> </level> <level label="2"> <text>the respective political subdivision certifies that the business entity has complied with the standards that the subdivision submitted under § 5–703(b)(5) of this subtitle;</text> </level> <level label="3"> <text>the business entity creates new or additional jobs or makes a capital investment to qualify for the property tax credit under § 9–103 of the Tax – Property Article and the income tax credits under § 10–702 of the Tax – General Article; and</text> </level> <level label="4"> <text>in considering whether the business entity qualifies for financial assistance from the programs in Subtitle 1 of this title, the Secretary determines that the business entity will create new or additional jobs.</text> </level> </level> <level label="c"> <text>The incentives and initiatives provided for in this section are not available to a business entity that:</text> <level label="1"> <text>was in an enterprise zone before the date that the enterprise zone is designated, except for a capital investment or expansion of its labor force that occurs on or after the enterprise zone is designated; or</text> </level> <level label="2"> <text>is located in an enterprise zone that was designated under federal law unless the Secretary and the Board of Public Works consent to the designation.</text> </level> </level> <level label="d"> <level label="1"> <text>Except as provided in § 10–702 of the Tax – General Article and § 9–103 of the Tax – Property Article, the incentives and initiatives set forth in this section are available for 10 years after the date that an area is designated an enterprise zone.</text> </level> <level label="2"> <text>A law enacted after the enactment of this section that eliminates or reduces the benefits available to a business entity under this section does not apply to a business entity that was in an enterprise zone before the effective date of the law.</text> </level> </level> <level label="e"> <level label="1"> <level label="i"> <text>Notwithstanding subsection (d) of this section, except for a business entity certified to receive a property tax credit under § 9–103 of the Tax – Property Article for a tax year beginning before July 1, 2008, a business entity located in an enterprise zone may not receive the incentives and initiatives set forth in subsection (a)(1) and (2) of this section if the entity is located on land or within improvements owned by the federal government, the State, a county, or a municipal corporation unless the business entity has first utilized all applicable property tax exemptions under Title 7 of the Tax – Property Article, including entering into any available payment in lieu of tax agreement.</text> </level> <level label="ii"> <text>Subparagraph (i) of this paragraph does not apply to a business entity leasing land or improvements owned by the Maryland Economic Development Corporation or the Maryland Department of Transportation.</text> </level> </level> <level label="2"> <text>Notwithstanding subsection (d) of this section, a business entity located in a BRAC Revitalization and Incentive Zone established under Subtitle 13 of this title may not receive the property tax credit under § 9–103 of the Tax – Property Article unless:</text> <level label="i"> <text>the business entity qualified for the property tax credit before the date that the BRAC Revitalization and Incentive Zone is designated; or</text> </level> <level label="ii"> <text>the political subdivision where the business entity is located expressly grants the property tax credit to the business entity.</text> </level> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-708" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="7" subtitle_name="Enterprise Zones"> <level label="a"> <text>An area that is designated an enterprize zone, empowerment zone, or enterprise community under federal law shall automatically be designated as an enterprise zone notwithstanding the limit on the number of enterprise zones that the Secretary may designate under § 5-704(b) of this subtitle.</text> </level> <level label="b"> <text>An application by a political subdivision and the designation by the Secretary of an area as an enterprise zone constitutes the State approval that may be required to designate an area as an enterprise zone under federal law.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-709" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="7" subtitle_name="Enterprise Zones"> <level label="a"> <level label="1"> <text>Subject to paragraph (2) of this subsection, an area designated as a transit–oriented development under § 7–101 of the Transportation Article before October 1, 2026, that is served by a rail transit station that receives at least hourly service on average from 8:00 a.m. until 6:00 p.m. Monday through Friday is eligible to automatically be designated as an enterprise zone under the provisions of this subtitle notwithstanding the limit on the number of enterprise zones that the Secretary may designate under § 5–704(b) of this subtitle.</text> </level> <level label="2"> <text>The local government or multicounty agency with land use and planning responsibility for the area that requested the area be designated as a transit–oriented development may elect, by ordinance, resolution, or similar action, to designate the area as an enterprise zone.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, an area designated as a transit–oriented development under § 7–101 of the Transportation Article on or after October 1, 2026, that is served by a rail transit station that receives at least hourly service on average from 8:00 a.m. until 6:00 p.m. Monday through Friday shall automatically be designated as an enterprise zone notwithstanding the limit on the number of enterprise zones that the Secretary may designate under § 5–704(b) of this subtitle.</text> </level> <level label="2"> <level label="i"> <text>At the time a transit–oriented development area is designated, the local government or multicounty agency with land use and planning responsibility for the area that requested the area be designated as a transit–oriented development may elect not to designate the area as an enterprise zone.</text> </level> <level label="ii"> <text>An election made under subparagraph (i) of this paragraph shall be done, in writing, to the Sustainable Growth Subcabinet established under § 9–1403 of the State Government Article.</text> </level> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-710" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="7" subtitle_name="Enterprise Zones"> <level label="a"> <text>In accordance with § 2.5–109 of this article, the Department shall submit a report on the effectiveness of the tax credits provided under § 5–707(b) of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>On or before September 15 each year, the State Department of Assessments and Taxation shall submit to the Department a report that includes the following information for the immediately preceding taxable year:</text> <level label="i"> <text>the number of properties claiming a property tax credit under § 9–103 of the Tax – Property Article calculated in accordance with § 9–103(d)(1) of the Tax – Property Article;</text> </level> <level label="ii"> <text>the number of properties claiming a property tax credit under § 9–103 of the Tax – Property Article calculated in accordance with § 9–103(d)(4) of the Tax – Property Article;</text> </level> <level label="iii"> <text>the number of properties newly certified as qualified properties eligible for the property tax credit under § 9–103 of the Tax – Property Article; and</text> </level> <level label="iv"> <text>for each taxpayer claiming or receiving a property tax credit under § 9–103 of the Tax – Property article:</text> <level label="1"> <text>the name of the taxpayer;</text> </level> <level label="2"> <text>the location of the qualified property for which the credit was claimed; and</text> </level> <level label="3"> <text>the amount of tax savings received by each qualified property.</text> </level> </level> </level> <level label="2"> <text>On or before September 15 each year, the Comptroller shall submit to the Department a report that includes the following information for the immediately preceding taxable year:</text> <level label="i"> <text>the name and address of each business entity that claimed an income tax credit under § 10–702 of the Tax – General Article;</text> </level> <level label="ii"> <text>the business activity code or North American Industry Classification System (NAICS) code of the business entity;</text> </level> <level label="iii"> <text>the number of qualified employees and focus area employees employed by the business entity;</text> </level> <level label="iv"> <text>the number of economically disadvantaged individuals employed by the business entity and the number of years for which those economically disadvantaged individuals have been employed by the business entity; and</text> </level> <level label="v"> <text>the total amount of the income tax credit claimed by the business entity.</text> </level> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>On or before September 15 each year, each county within which an enterprise zone is located shall submit to the Department a detailed report on each enterprise zone in the county to assist the Department in the assessment required under subsection (a) of this section.</text> </level> <level label="ii"> <text>The county shall include in the report required under subparagraph (i) of this paragraph the following information for the immediately preceding fiscal year:</text> <level label="1"> <text>the number of properties newly certified as qualified properties;</text> </level> <level label="2"> <text>notable examples of redevelopment or new businesses relocating or expanding in the enterprise zone due to the tax credits provided under this subtitle; and</text> </level> <level label="3"> <text>a description of future economic development projects that might claim a tax credit provided under this subtitle, including with respect to each project:</text> </level> <level label="A"> <text>whether the project is located within a focus area;</text> </level> <level label="B"> <text>whether the project may qualify for a credit under this subtitle against the tax imposed on real property, personal property, or income; and</text> </level> <level label="C"> <text>anticipated capital or personal property expenditures for the project.</text> </level> </level> </level> <level label="2"> <level label="i"> <text>If a county fails to provide the report required under paragraph (1) of this subsection, the Department shall notify the county that the report is due.</text> </level> <level label="ii"> <text>If, after the Department has provided a county the notice described under subparagraph (i) of this paragraph, the county fails to promptly provide the overdue report, the Secretary may not designate a new enterprise zone in the county or grant the expansion of an existing enterprise zone in the county until the report is received by the Department.</text> </level> </level> </level> <level label="d"> <text>The Department shall develop formal metrics and a framework for analyzing:</text> <level label="1"> <text>the cost–effectiveness of each enterprise zone; and</text> </level> <level label="2"> <text>the effectiveness of each enterprise zone in attracting businesses and increasing employment.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-801" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="8" subtitle_name="Foreign Trade Zones"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Private corporation” means a Maryland corporation organized to establish, operate, and maintain a foreign trade zone under the federal Foreign Trade Zones Act.</text> </level> <level label="2"> <text>“Private corporation” does not include a public corporation.</text> </level> </level> <level label="c"> <text>“Public corporation” means:</text> <level label="1"> <text>the State;</text> </level> <level label="2"> <text>a subdivision of the State; or</text> </level> <level label="3"> <text>an incorporated public authority, commission, agency, or other corporate instrumentality of:</text> <level label="i"> <text>the State;</text> </level> <level label="ii"> <text>a subdivision or municipal corporation of the State; or</text> </level> <level label="iii"> <text>the State and another state.</text> </level> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-802" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="8" subtitle_name="Foreign Trade Zones"> <level label="a"> <text>Except as provided in subsection (b) of this section, a public corporation or a private corporation may apply to establish, operate, and maintain a foreign trade zone in accordance with the federal Foreign Trade Zones Act.</text> </level> <level label="b"> <text>A private corporation may not apply to establish, operate, and maintain a foreign trade zone without prior approval from the Governor and the Maryland Port Administration.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-803" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="8" subtitle_name="Foreign Trade Zones"> <text>A public corporation or a private corporation that establishes, operates, and maintains a foreign trade zone under this subtitle is subject to the conditions of the federal Foreign Trade Zones Act.</text> </section> <section article="gec" article_name="Economic Development" number="5-804" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="8" subtitle_name="Foreign Trade Zones"> <text>A person that wishes to have a site in the State designated as a foreign trade zone shall apply for designation approval to the foreign trade zone grantee in the State that is closest to the site before applying to another foreign trade zone grantee in the State for designation approval.</text> </section> <section article="gec" article_name="Economic Development" number="5-901" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="9" subtitle_name="Dredged Material Disposal Alternatives Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Dredged material” means material that is dredged from the Chesapeake Bay or its tributaries.</text> </level> <level label="2"> <text>“Dredged material” includes sand, silt, sediment, shell, rock, soil, and waste matter.</text> </level> </level> <level label="c"> <text>“Dredged material reuse facility” means a facility that dewaters, analyzes for contaminants, dries, and processes dredged material for reuse.</text> </level> <level label="d"> <text>“Program” means the Dredged Material Disposal Alternatives Program under this subtitle.</text> </level> <level label="e"> <text>“Reuse” means the recycling of dredged material for use in another product, including commercial and industrial uses.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-902" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="9" subtitle_name="Dredged Material Disposal Alternatives Program"> <text>There is a Dredged Material Disposal Alternatives Program in the Department.</text> </section> <section article="gec" article_name="Economic Development" number="5-903" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="9" subtitle_name="Dredged Material Disposal Alternatives Program"> <level label="a"> <text>The purposes of the Program are to:</text> <level label="1"> <text>designate innovative reuses of dredged material as a sustainable alternative in the management of dredged material disposal; and</text> </level> <level label="2"> <text>provide financial assistance for the production and marketing of technologies that dewater, analyze for contaminants, dry, and process dredged material for reuse in an economically beneficial manner.</text> </level> </level> <level label="b"> <text>The goals of the Program are to:</text> <level label="1"> <text>implement the beneficial reuse of dredged materials as a sustainable dredged material management method;</text> </level> <level label="2"> <text>foster markets for end-use products that use dredged material as a resource;</text> </level> <level label="3"> <text>increase public awareness of the many valuable commercial and industrial uses of dredged material and products made using dredged material; and</text> </level> <level label="4"> <text>facilitate the reuse of at least 500,000 cubic yards of dredged material each year.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-904" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="9" subtitle_name="Dredged Material Disposal Alternatives Program"> <text>The Department shall adopt regulations to carry out this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="5-905" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="9" subtitle_name="Dredged Material Disposal Alternatives Program"> <text>The Program shall:</text> <level label="1"> <text>seek money from federal programs to administer the Program;</text> </level> <level label="2"> <text>engage in public-private partnerships and provide financial assistance to foster the development, construction, and operation of dredged material reuse facilities in the State in an economically beneficial manner;</text> </level> <level label="3"> <text>provide financial assistance to develop end-use markets for dredged material; and</text> </level> <level label="4"> <text>promote the reuse of dredged material and market resulting products.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-906" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="9" subtitle_name="Dredged Material Disposal Alternatives Program"> <text>Financial assistance from the Program may be in the form of a loan or grant, as provided in regulations of the Department.</text> </section> <section article="gec" article_name="Economic Development" number="5-907" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="9" subtitle_name="Dredged Material Disposal Alternatives Program"> <level label="a"> <text>The Program is contingent on the allocation of money in the State budget to the Maryland Department of Transportation.</text> </level> <level label="b"> <text>In accordance with the State budget, the Maryland Department of Transportation shall allocate money for the Program from the Transportation Trust Fund after elements of a long-term plan for managing dredged material, in accordance with §§ 5-1102(d)(2)(ii) and 5-1104.2(d) of the Environment Article:</text> <level label="1"> <text>are operational; and</text> </level> <level label="2"> <text>provide 20 years of placement capacity.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-1001" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="10" subtitle_name="Uniformed Services Personnel and Veteran-Owned Small Business No-Interest Loan Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Active duty” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="c"> <text>“Fund” means the Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund established under § 5–1006 of this subtitle.</text> </level> <level label="d"> <text>“Reserve component” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="e"> <text>“Service–disabled veteran” means a veteran with a disability that is service–connected, as defined in 38 U.S.C. § 101(16).</text> </level> <level label="f"> <level label="1"> <text>“Small business employer” means an employer who employed an average of 50 or fewer employees on business days during the calendar year preceding the determination of eligibility for a loan under this subtitle.</text> </level> <level label="2"> <text>For purposes of paragraph (1) of this subsection, all persons treated as a single employer under § 414(b), (c), (m), or (o) of the Internal Revenue Code shall be treated as a single employer under this subtitle.</text> </level> </level> <level label="g"> <text>“Uniformed services” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="h"> <text>“Veteran” has the meaning stated in § 9–901 of the State Government Article.</text> </level> <level label="i"> <text>“Veteran–owned small business” means a small business that is at least 51% owned by a veteran.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1002" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="10" subtitle_name="Uniformed Services Personnel and Veteran-Owned Small Business No-Interest Loan Program"> <level label="a"> <text>Subject to the availability of funds, the Department, in consultation with the Department of Veterans and Military Families, shall establish a program to provide no–interest loans under this subtitle to:</text> <level label="1"> <text>small business employers of reserve component members who are called to active duty;</text> </level> <level label="2"> <text>businesses owned by reserve component members who are called to active duty;</text> </level> </level> <level label="b"> <text>If the availability of funds is limited, in making loans under this subtitle, the Department, in consultation with the Department of Veterans and Military Families, shall give priority to the businesses described in subsection (a)(2) and (3) of this section.</text> </level> <level label="c"> <text>In making loans under this subtitle, the Department, in consultation with the Department of Veterans and Military Families, shall take into consideration how to maximize the number of veterans and reserve component members who would benefit from loans made under this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1003" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="10" subtitle_name="Uniformed Services Personnel and Veteran-Owned Small Business No-Interest Loan Program"> <text>Loans shall be made under this subtitle for the purposes of:</text> <level label="1"> <text>providing financial support to:</text> <level label="i"> <text>a business owned by a reserve component member who is called to active duty; or</text> </level> <level label="ii"> <text>a small business employer of a reserve component member who is called to active duty;</text> </level> </level> <level label="2"> <text>making the home, motor vehicle, or place of employment of a veteran accessible to individuals with disabilities, including purchasing equipment necessary to enable a business to employ a service–disabled veteran or to enable a service–disabled veteran to operate a business; and</text> </level> <level label="3"> <text>defraying other necessary expenses, as determined by the Department of Veterans and Military Families, incurred by:</text> <level label="i"> <text>a business employing a service–disabled veteran; or</text> </level> <level label="ii"> <text>a veteran–owned small business.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-1004" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="10" subtitle_name="Uniformed Services Personnel and Veteran-Owned Small Business No-Interest Loan Program"> <level label="a"> <text>A loan made under this subtitle for the purpose of providing financial support to a business owned by an individual who is called to active duty or to a small business employer of an individual who is called to active duty:</text> <level label="1"> <text>may be made at any time from the individual’s receipt of orders to report to 6 months after the end of the individual’s active duty; and</text> </level> <level label="2"> <text>shall be subject to criteria for eligibility and priority established by the Department of Veterans and Military Families, including the extent to which the individual who is called to active duty is an essential employee of the business.</text> </level> </level> <level label="b"> <text>A loan made under this subtitle for the purpose of making accessible to individuals with disabilities the home, motor vehicle, or place of employment of a service–disabled veteran may be made at any time.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1005" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="10" subtitle_name="Uniformed Services Personnel and Veteran-Owned Small Business No-Interest Loan Program"> <level label="a"> <text>The Department shall administer the loan program authorized under this subtitle.</text> </level> <level label="b"> <text>The Department of Veterans and Military Families shall establish eligibility criteria for loans under this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1006" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="10" subtitle_name="Uniformed Services Personnel and Veteran-Owned Small Business No-Interest Loan Program"> <level label="a"> <text>There is a Uniformed Services Personnel and Veteran–Owned Small Business No–Interest Loan Fund.</text> </level> <level label="b"> <text>The purpose of the Fund is to provide no–interest loans consistent with this subtitle.</text> </level> <level label="c"> <text>The Secretary shall administer the Fund.</text> </level> <level label="d"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> <level label="3"> <text>Any investment earnings of the Fund shall be credited to the Fund.</text> </level> </level> <level label="e"> <text>The Fund consists of:</text> <level label="1"> <text>money the State appropriates to the Fund;</text> </level> <level label="2"> <text>money made available to the Fund through federal programs or private contributions;</text> </level> <level label="3"> <text>repayments from loans provided by the Department under this subtitle;</text> </level> <level label="4"> <text>proceeds from the sale, disposition, lease, or rental of collateral related to loans provided by the Department under this subtitle; and</text> </level> <level label="5"> <text>any other money made available to the Fund.</text> </level> </level> <level label="f"> <text>The Department may use money in the Fund to provide loans to eligible applicants under §§ 5–1002 through 5–1004 of this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1007" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="10" subtitle_name="Uniformed Services Personnel and Veteran-Owned Small Business No-Interest Loan Program"> <level label="a"> <text>The Department shall adopt regulations to carry out this subtitle.</text> </level> <level label="b"> <text>The Department of Veterans and Military Families may adopt regulations concerning eligibility criteria for loans under this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1201" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="12" subtitle_name="Maryland Nonprofit Development Center Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Fund” means the Maryland Nonprofit Development Center Program Fund established under § 5–1204 of this subtitle.</text> </level> <level label="c"> <text>“Nonprofit entity” means a corporation incorporated in the State, or otherwise qualified to do business in the State, that has been determined by the Internal Revenue Service to be exempt from taxation under § 501(c)(3), (4), or (6) of the Internal Revenue Code.</text> </level> <level label="d"> <text>“Program” means the Maryland Nonprofit Development Center Program established under § 5–1202 of this subtitle.</text> </level> <level label="e"> <text>“Qualifying nonprofit entity” means a nonprofit entity:</text> <level label="1"> <text>that has annual revenues not greater than $750,000;</text> </level> <level label="2"> <text>that has been in existence for not more than 10 years; and</text> </level> <level label="3"> <text>whose principal purpose is providing health, education, environmental, agricultural, or social services through community–based programs.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-1202" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="12" subtitle_name="Maryland Nonprofit Development Center Program"> <level label="a"> <text>There is a Maryland Nonprofit Development Center Program in the Department.</text> </level> <level label="b"> <text>The Program shall foster, support, and assist the economic growth and revitalization of qualifying nonprofit entities in the State by providing training and technical assistance services and bridge loans to nonprofit entities that have received written confirmation of funding from government grants or contracts but have not yet received the funding.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1203" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="12" subtitle_name="Maryland Nonprofit Development Center Program"> <text>The Program shall provide assistance to qualifying nonprofit entities, including:</text> <level label="1"> <text>operation of an information exchange governing current and new technical information and data about all aspects of nonprofit management, including:</text> <level label="i"> <text>nonprofit start–up;</text> </level> <level label="ii"> <text>budgeting and financial management;</text> </level> <level label="iii"> <text>facilities development and management;</text> </level> <level label="iv"> <text>board development;</text> </level> <level label="v"> <text>organizational development and strategic planning;</text> </level> <level label="vi"> <text>marketing;</text> </level> <level label="vii"> <text>federal and State contracting and grant making;</text> </level> <level label="viii"> <text>individual, corporate, and foundation fund–raising;</text> </level> <level label="ix"> <text>volunteer management;</text> </level> <level label="x"> <text>personnel management;</text> </level> <level label="xi"> <text>federal and State tax law and regulations;</text> </level> <level label="xii"> <text>federal and State law and regulations governing charitable solicitations;</text> </level> <level label="xiii"> <text>federal and State regulations applicable to licensing or accreditation;</text> </level> <level label="xiv"> <text>federal and State financing programs; and</text> </level> <level label="xv"> <text>information technology; and</text> </level> </level> <level label="2"> <text>individual consultation and technical assistance to any qualifying nonprofit entity that requests the service, including assistance on any of the subjects identified in item (1) of this section.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1204" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="12" subtitle_name="Maryland Nonprofit Development Center Program"> <level label="a"> <level label="1"> <level label="i"> <text>There is a Maryland Nonprofit Development Center Program Fund in the Department.</text> </level> <level label="ii"> <level label="1"> <text>Within the Fund, there is a Nonprofit, Interest–Free, Micro Bridge Loan (NIMBL) Account.</text> </level> <level label="2"> <text>The Account consists of:</text> </level> <level label="A"> <text>money received under § 9–1A–27 of the State Government Article; and</text> </level> <level label="B"> <text>any other money appropriated, transferred by budget amendment, or repaid to the Account.</text> </level> <level label="3"> <text>The money in the Account may not exceed $1,000,000.</text> </level> <level label="4"> <text>If the money in the Account exceeds $1,000,000, any money in excess of that amount shall be transferred to the Small, Minority, and Women–Owned Businesses Account established under § 5–1501 of this title.</text> </level> </level> </level> <level label="2"> <text>The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="3"> <text>The Fund consists of:</text> <level label="i"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="ii"> <text>money in the Nonprofit, Interest–Free, Micro Bridge Loan (NIMBL) Account; and</text> </level> <level label="iii"> <text>all other money accepted for the benefit of the Fund, including an additional $50 fee to be paid for the processing of articles of incorporation of a nonstock corporation in accordance with § 1–203 of the Corporations and Associations Article.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The purpose of the Fund is to provide grant money and bridge loans to support the operations of the Program consistent with this subtitle.</text> </level> <level label="2"> <text>As provided in the State budget, the Fund also may be used by the Department of General Services to evaluate the participation of nonprofit entities in State procurement.</text> </level> </level> <level label="c"> <level label="1"> <text>For fiscal year 2024, the Governor shall include in the annual budget bill an appropriation of $1,000,000 to the Fund to be used for loans under the NIMBL Account.</text> </level> <level label="2"> <text>If $1,000,000 is not included in the annual budget bill for fiscal year 2024, then the Governor shall include in the annual budget bill for fiscal year 2025 an appropriation of $1,000,000 to be used for loans under the NIMBL Account.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-1205" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="12" subtitle_name="Maryland Nonprofit Development Center Program"> <level label="a"> <text>The Department shall designate at least one private nonprofit entity to receive grants from the Maryland Nonprofit Development Center Program Fund to implement the Program.</text> </level> <level label="b"> <text>In selecting a designee, the Department shall consider and give priority to organizations that:</text> <level label="1"> <text>have experience in providing the scope of assistance and services required under § 5–1203 of this subtitle to qualifying nonprofit entities in the State;</text> </level> <level label="2"> <text>demonstrate the capacity to provide the assistance and services required under § 5–1203 of this subtitle on a statewide basis; and</text> </level> <level label="3"> <text>demonstrate current expenditures that:</text> <level label="i"> <text>are equal to at least three times the amount of funding received under this section; and</text> </level> <level label="ii"> <text>have been received from other sources for the provision of assistance and services of the type required under § 5–1203 of this subtitle to nonprofit entities in the State.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>The Department may provide a no–interest bridge loan for operating expenses of up to $25,000 to a nonprofit entity that has received written confirmation of funding from a government grant or contract but has not yet received the funding.</text> </level> <level label="2"> <text>The Department shall establish an application process for bridge loans provided under this subsection.</text> </level> <level label="3"> <text>Before providing a bridge loan under this subsection, the Department shall receive written confirmation that the nonprofit entity has been awarded a government grant or contract but has not yet received the funding.</text> </level> <level label="4"> <text>The Department shall establish a schedule for repayment for a bridge loan that:</text> <level label="i"> <text>is reasonable based on the nature and payment schedule of the government grant or contract to the nonprofit entity; and</text> </level> <level label="ii"> <text>assures repayment of the bridge loan is completed no later than the date of the final grant or contract payment to the nonprofit entity.</text> </level> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-1301" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="13" subtitle_name="Brac Revitalization and Incentive Zones"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Area” means a geographic area within one or more political subdivisions within the State described by a closed perimeter boundary.</text> </level> <level label="c"> <text>“BRAC Revitalization and Incentive Zone” means an area that:</text> <level label="1"> <text>meets the requirements of § 5–1303 of this subtitle; and</text> </level> <level label="2"> <text>is designated as a BRAC Revitalization and Incentive Zone by the Secretary under § 5–1304 of this subtitle.</text> </level> </level> <level label="d"> <text>“Enterprise zone” has the meaning stated in § 5–701 of this title.</text> </level> <level label="e"> <text>“Political subdivision” means any county or municipal corporation.</text> </level> <level label="f"> <text>“Submission date” means the date the Secretary receives an application from a political subdivision for designation of a BRAC Revitalization and Incentive Zone.</text> </level> <level label="g"> <text>“Tax increment financing bonds” means bonds issued by:</text> <level label="1"> <text>a political subdivision under Title 12, Subtitle 2 of this article; or</text> </level> <level label="2"> <text>Baltimore City under Article II, § 62 of the Charter of Baltimore City.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-1302" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="13" subtitle_name="Brac Revitalization and Incentive Zones"> <level label="a"> <text>The following political subdivisions may apply to the Secretary to designate a BRAC Revitalization and Incentive Zone:</text> <level label="1"> <text>a political subdivision for an area within that political subdivision;</text> </level> <level label="2"> <text>with the prior consent of the municipal corporation, a county on behalf of a municipal corporation for an area in the municipal corporation; or</text> </level> <level label="3"> <text>two or more political subdivisions jointly for an area astride their common boundaries.</text> </level> </level> <level label="b"> <text>The application shall:</text> <level label="1"> <text>be in the form and manner and contain the information that the Secretary requires;</text> </level> <level label="2"> <text>contain sufficient information to allow the Secretary to determine if the proposed BRAC Revitalization and Incentive Zone meets the criteria in § 5–1303 of this subtitle;</text> </level> <level label="3"> <text>be submitted for a political subdivision by its chief elected officer, or if none, its governing body; and</text> </level> <level label="4"> <text>state whether the political subdivision has examined the feasibility of creating educational or training opportunities for employers and employees of business entities located or to be located in the proposed BRAC Revitalization and Incentive Zone.</text> </level> </level> <level label="c"> <text>After the Secretary’s receipt of an application for designation of an area as a BRAC Revitalization and Incentive Zone or expansion of an existing zone under § 5–1305 of this subtitle, the Secretary shall notify the members of the county delegation to the General Assembly for each county in which a zone is proposed to be located.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1303" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="13" subtitle_name="Brac Revitalization and Incentive Zones"> <level label="a"> <text>The Secretary may only designate an area as a BRAC Revitalization and Incentive Zone if the area:</text> <level label="1"> <text>is located within a priority funding area as defined by Title 5, Subtitle 7B of the State Finance and Procurement Article or a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County;</text> </level> <level label="2"> <text>is served by a public or community water and sewer system or planned to be served by a public or community water and sewer system under the approved 10–year water and sewer plan;</text> </level> <level label="3"> <text>is designated for mixed use development that includes residential uses as part of the mix of land uses by the political subdivision; and</text> </level> <level label="4"> <text>has an average density of at least 3.5 units per acre, calculated in accordance with § 5–7B–03 of the State Finance and Procurement Article, in that part of the area designated by the political subdivision for residential use or development.</text> </level> </level> <level label="b"> <text>An area shall receive priority consideration for designation as a BRAC Revitalization and Incentive Zone under this section if the area is within one–half mile of a present or planned:</text> <level label="1"> <text>MARC station along the Penn, Camden, or Brunswick lines;</text> </level> <level label="2"> <text>Baltimore Metro SubwayLink station;</text> </level> <level label="3"> <text>Baltimore Light RailLink station; or</text> </level> <level label="4"> <text>Metrorail system station in the State.</text> </level> </level> <level label="c"> <text>An area may receive priority consideration for designation as a BRAC Revitalization and Incentive Zone under this section if the area is of strategic importance to the economic development interests of a county.</text> </level> <level label="d"> <text>The Secretary shall consider the following factors in determining whether to designate an area as a BRAC Revitalization and Incentive Zone:</text> <level label="1"> <text>whether the area’s designation as a BRAC Revitalization and Incentive Zone is consistent with the political subdivision’s comprehensive plan;</text> </level> <level label="2"> <text>whether the area contains brownfields sites that are capable of redevelopment;</text> </level> <level label="3"> <text>whether the political subdivision has targeted the area for revitalization as provided for in the political subdivision’s comprehensive plan or in another plan or ordinance;</text> </level> <level label="4"> <text>the relationship of the area to a BRAC installation or how the area is impacted by BRAC;</text> </level> <level label="5"> <text>the availability, cost, and condition of business facilities;</text> </level> <level label="6"> <text>the number and age of abandoned structures;</text> </level> <level label="7"> <text>the number and age of substandard structures;</text> </level> <level label="8"> <text>the income of residents relative to the State or regional median incomes, including the number of persons who receive public assistance or are unemployed;</text> </level> <level label="9"> <text>the extent of unemployment and the ability to upgrade the social and economic conditions of the area;</text> </level> <level label="10"> <text>the need for financing for small businesses to upgrade the social and economic conditions of the area;</text> </level> <level label="11"> <text>any plans and financial commitments of local jurisdictions to undertake improvements in the proposed area;</text> </level> <level label="12"> <text>a political subdivision’s participation in revitalization activities including whether the area has been designated an enterprise zone;</text> </level> <level label="13"> <text>the presence of a special taxing district, a historic district listed on the National Register of Historic Places, or a local historic district;</text> </level> <level label="14"> <text>support from community or business organizations;</text> </level> <level label="15"> <text>other revitalization projects undertaken in the proposed area;</text> </level> <level label="16"> <text>a political subdivision’s participation in workforce readiness programs;</text> </level> <level label="17"> <text>a political subdivision’s participation in the creation of affordable and workforce housing options for residents;</text> </level> <level label="18"> <text>whether the political subdivision has acted to provide for the adequate protection and conservation of vital natural resource areas and agricultural areas within the political subdivision’s comprehensive plan or in another local government plan or ordinance;</text> </level> <level label="19"> <text>the presence of sensitive areas, as defined in § 1–101 of the Land Use Article;</text> </level> <level label="20"> <text>a political subdivision’s provision of a breadth of transportation options to improve accessibility and land use that supports transit ridership, walking, and bicycle use; and</text> </level> <level label="21"> <text>the fiscal impact of the designation of the BRAC Revitalization and Incentive Zone on the State.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-1304" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="13" subtitle_name="Brac Revitalization and Incentive Zones"> <level label="a"> <level label="1"> <text>Within 60 days after a submission date, the Secretary, after receiving a recommendation of the Smart Growth Subcabinet, may designate one or more BRAC Revitalization and Incentive Zones from among the areas described in the applications timely submitted.</text> </level> <level label="2"> <text>The designation of an area as a BRAC Revitalization and Incentive Zone is effective for 10 years, beginning on the date the first property in the BRAC Revitalization and Incentive Zone becomes a qualified property, as defined in § 2–222 of the Tax – Property Article.</text> </level> <level label="3"> <text>The Secretary may not designate more than six BRAC Revitalization and Incentive Zones in a calendar year.</text> </level> <level label="4"> <text>A county may not receive more than two BRAC Revitalization and Incentive Zones.</text> </level> <level label="5"> <text>The precise location and boundaries of a BRAC Revitalization and Incentive Zone may be determined only on application to and approval by the Secretary.</text> </level> </level> <level label="b"> <text>The designation of the Secretary is final.</text> </level> <level label="c"> <text>At any time, a political subdivision may reapply to the Secretary to designate as a BRAC Revitalization and Incentive Zone an area that is not designated.</text> </level> <level label="d"> <level label="1"> <text>This subsection applies only to a political subdivision that is authorized under § 7–211.3 of the Tax – Property Article to enter into a payment in lieu of tax agreement with a private developer for federal enclave property.</text> </level> <level label="2"> <text>The Secretary may not designate a BRAC Revitalization and Incentive Zone in a county until, in the judgment of the Secretary, the political subdivision has entered into good faith negotiations for a payment in lieu of tax agreement with all private developers of federal enclave property.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-1305" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="13" subtitle_name="Brac Revitalization and Incentive Zones"> <level label="a"> <level label="1"> <text>A political subdivision may apply to the Secretary to expand an existing BRAC Revitalization and Incentive Zone in the same manner as the political subdivision would apply to designate a new BRAC Revitalization and Incentive Zone.</text> </level> <level label="2"> <text>The Secretary may grant an expansion of a BRAC Revitalization and Incentive Zone into an area that meets the requirements of § 5–1303 of this subtitle.</text> </level> <level label="3"> <text>For purposes of § 5–1304(a) of this subtitle, an expansion of a BRAC Revitalization and Incentive Zone that does not exceed 50% of the existing geographic area of the BRAC Revitalization and Incentive Zone does not count towards the limit on the number of BRAC Revitalization and Incentive Zones that:</text> <level label="i"> <text>the Secretary may designate in a calendar year; or</text> </level> <level label="ii"> <text>a county may receive.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The Secretary may grant an extraordinary expansion of a BRAC Revitalization and Incentive Zone in the State each calendar year for an area that:</text> <level label="i"> <text>meets the requirements of § 5–1303 of this subtitle; and</text> </level> <level label="ii"> <text>in the determination of the Secretary, is of strategic importance to the economic development interests of the county in which the BRAC Revitalization and Incentive Zone is located.</text> </level> </level> <level label="2"> <text>For purposes of § 5–1304(a) of this subtitle, an extraordinary expansion of a BRAC Revitalization and Incentive Zone does not count towards the limit on the number of BRAC Revitalization and Incentive Zones that:</text> <level label="i"> <text>the Secretary may designate in a calendar year; or</text> </level> <level label="ii"> <text>a county may receive.</text> </level> </level> <level label="3"> <text>The Secretary may not grant more than two extraordinary expansions in the State during a single calendar year.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-1306" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="13" subtitle_name="Brac Revitalization and Incentive Zones"> <level label="a"> <text>Benefits are available to political subdivisions with BRAC Revitalization and Incentive Zones as provided in this section.</text> </level> <level label="b"> <level label="1"> <text>A political subdivision that receives designation of an area as a BRAC Revitalization and Incentive Zone may receive amounts as provided in § 2–222 of the Tax – Property Article.</text> </level> <level label="2"> <text>Amounts received by a political subdivision as provided in § 2–222 of the Tax – Property Article:</text> <level label="i"> <text>shall be used to pay for infrastructure improvements in the BRAC Revitalization and Incentive Zone; and</text> </level> <level label="ii"> <text>may be used for the repayment of bonds, including tax increment financing bonds, issued by the political subdivision for infrastructure improvements in the BRAC Revitalization and Incentive Zone.</text> </level> </level> </level> <level label="c"> <text>Political subdivisions and business entities may receive priority consideration for financial assistance for projects or operations in a BRAC Revitalization and Incentive Zone from:</text> <level label="1"> <text>programs in:</text> <level label="i"> <text>the Department;</text> </level> <level label="ii"> <text>the Department of Housing and Community Development; or</text> </level> <level label="iii"> <text>the Department of Planning; or</text> </level> </level> <level label="2"> <text>any other appropriate State programs.</text> </level> </level> <level label="d"> <text>The benefits set forth in this section are available for 10 years after the date that the first property in the BRAC Revitalization and Incentive Zone becomes a qualified property, as defined in § 2–222 of the Tax – Property Article.</text> </level> <level label="e"> <text>The Department shall adopt regulations to carry out the provisions of this subtitle and to specify criteria and procedures for the application, approval, and monitoring the eligibility for the benefits under this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1307" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="13" subtitle_name="Brac Revitalization and Incentive Zones"> <level label="a"> <text>On or before October 15 of each year, a political subdivision with a BRAC Revitalization and Incentive Zone designation shall submit a report to the Department that assesses the effectiveness of the benefits provided to the BRAC Revitalization and Incentive Zone in attracting and retaining businesses within the BRAC Revitalization and Incentive Zone.</text> </level> <level label="b"> <text>In accordance with § 2.5–109 of this article, the Department shall submit a report on the effectiveness of the benefits under this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1501" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="15" subtitle_name="Small, Minority, and Women-Owned Businesses Account"> <level label="a"> <text>In this section, “eligible fund manager” means:</text> <level label="1"> <text>an entity that has significant financial or investment experience, under criteria developed by the Department; and</text> </level> <level label="2"> <text>includes an entity that the Department designates to manage funds received under subsection (c)(1) of this section.</text> </level> </level> <level label="b"> <text>There is a Small, Minority, and Women–Owned Businesses Account under the authority of the Department.</text> </level> <level label="c"> <level label="1"> <text>The Account shall receive money as required under § 9–1A–27 of the State Government Article.</text> </level> <level label="2"> <text>Money in the Account shall be invested and reinvested by the Treasurer and interest and earnings shall accrue to the Account.</text> </level> <level label="3"> <text>The Comptroller shall:</text> <level label="i"> <text>account for the Account; and</text> </level> <level label="ii"> <text>on a properly approved transmittal prepared by the Department, issue a warrant to pay out money from the Account in the manner provided under this section.</text> </level> </level> <level label="4"> <text>The Account is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="5"> <text>Expenditures from the Account shall only be made on a properly approved transmittal prepared by the Department as provided under subsection (d) of this section.</text> </level> </level> <level label="d"> <level label="1"> <level label="i"> <text>Subject to the provisions of paragraph (2) of this subsection, the Department shall make grants to eligible fund managers to provide investment capital and financial assistance to small, minority, and women–owned businesses in the State.</text> </level> <level label="ii"> <level label="1"> <text>Financial assistance provided by eligible fund managers shall be in the form of:</text> </level> <level label="A"> <text>a loan; or</text> </level> <level label="B"> <text>subject to subsubparagraph 2 of this subparagraph, a grant.</text> </level> <level label="2"> <text>Financial assistance in the form of a grant:</text> </level> <level label="A"> <text>may not exceed $10,000 and shall be issued in conjunction with a loan of any amount; or</text> </level> <level label="B"> <text>shall be made pursuant to subsection (i) of this section.</text> </level> </level> <level label="iii"> <text>The Department shall approve a loan disbursement request from an eligible fund manager within 30 days of receiving the request.</text> </level> </level> <level label="2"> <text>Except for money received from the Strategic Energy Investment Fund, the Department shall ensure that eligible fund managers allocate at least 50% of the funds from this Account to small, minority, and women–owned businesses in the jurisdictions and communities surrounding a video lottery facility.</text> </level> <level label="3"> <text>When determining the grant amount to award to an eligible fund manager, the Department shall consider performance metrics, including fund manager activity.</text> </level> <level label="4"> <text>The Department shall conduct an annual review of the grant amount awarded to each eligible fund manager to determine whether the amount is sufficient.</text> </level> <level label="5"> <text>At least once every 3 years, the Department shall issue a request for proposals to add new eligible fund managers.</text> </level> </level> <level label="e"> <level label="1"> <text>Any money received from the Strategic Energy Investment Fund shall be used to benefit small, minority, women–owned, and veteran–owned businesses in the clean energy industry in the State.</text> </level> <level label="2"> <text>The Department shall make grants to eligible fund managers to provide investment capital, including direct equity investments and similar investments and financial assistance to small, minority, women–owned, and veteran–owned businesses in the clean energy industry in the State.</text> </level> </level> <level label="f"> <text>Fund managers receiving grants under this section shall:</text> <level label="1"> <text>keep proper records of funds and accounts;</text> </level> <level label="2"> <text>provide an annual report to the Department on investment capital and financial assistance made pursuant to subsection (d) of this section; and</text> </level> <level label="3"> <text>be subject to audit by the Office of Legislative Audits of the Department of Legislative Services.</text> </level> </level> <level label="g"> <level label="1"> <text>Subject to paragraph (2) of this subsection, an eligible fund manager may use money from grants received under this section to pay expenses for administrative, actuarial, legal, marketing, and technical services.</text> </level> <level label="2"> <text>The Department shall set the maximum amount of grant money that each eligible fund manager may use under paragraph (1) of this subsection.</text> </level> <level label="3"> <level label="i"> <text>In addition to the amount authorized under paragraph (2) of this subsection, the Department may authorize an eligible fund manager to receive a management fee that is calculated as a percentage of each loan made under subsection (d) of this section.</text> </level> <level label="ii"> <text>The percentage authorized under subparagraph (i) of this paragraph may not be less than 1.5% and may not exceed 3% of the total loan principal.</text> </level> <level label="iii"> <text>A management fee authorized under this paragraph shall be paid from the Account and may be retained by an eligible fund manager for administrative purposes related to lending activities under subsection (d) of this section.</text> </level> </level> <level label="4"> <text>The Department may establish an annual cap on the cumulative amount of management fees an eligible fund manager may receive under paragraphs (2) and (3) of this subsection.</text> </level> </level> <level label="h"> <level label="1"> <text>Subject to paragraphs (2) through (4) of this subsection, an eligible fund manager may use money from a grant received under subsection (e)(1) of this section to pay ordinary and reasonable expenses for administrative, actuarial, legal, marketing, and technical services and management fees.</text> </level> <level label="2"> <text>The Department shall:</text> <level label="i"> <text>maintain all money received from the Strategic Energy Investment Fund in a single account; and</text> </level> <level label="ii"> <text>make grant allocations to an eligible fund manager as the manager advises the Department that the manager has approved and prepared to fund an investment or provide financial assistance.</text> </level> </level> <level label="3"> <text>Any allocation that the Department makes to an eligible fund manager from the Strategic Energy Investment Fund shall include:</text> <level label="i"> <text>the amount of the investment or financial assistance; and</text> </level> <level label="ii"> <text>up to an additional 3% of the total investment or financial assistance commitment amount as a management fee for the benefit and compensation of the eligible fund manager.</text> </level> </level> <level label="4"> <text>An eligible fund manager that receives an allocation from the Strategic Energy Investment Fund shall retain for the manager’s benefit:</text> <level label="i"> <text>all management fees paid by the Department; and</text> </level> <level label="ii"> <text>all interest earned from a loan made by the eligible fund manager under this subsection.</text> </level> </level> </level> <level label="i"> <level label="1"> <text>Notwithstanding any provisions in this section to the contrary, this subsection applies to businesses in areas of the State that are:</text> <level label="i"> <text>declared to be federal disaster areas;</text> </level> <level label="ii"> <text>subject to a federal declaration of emergency; or</text> </level> <level label="iii"> <text>subject to an official declaration of emergency by the Governor.</text> </level> </level> <level label="2"> <text>In an area of the State described in paragraph (1) of this subsection, an eligible fund manager may:</text> <level label="i"> <text>provide financial assistance under this section to a small, minority, or women–owned business in the form of a grant; or</text> </level> <level label="ii"> <text>convert to a grant part or all of a loan that was provided to a small, minority, or women–owned business before the area was declared a federal disaster area or became subject to a declaration of emergency.</text> </level> </level> <level label="3"> <level label="i"> <text>The amount of any grant or loan converted to a grant under this subsection may not exceed $50,000 for a single business.</text> </level> <level label="ii"> <text>The aggregate total of financial assistance provided in the form of grants and loans converted to grants under this subsection may not exceed $10,000,000 in a fiscal year.</text> </level> </level> </level> <level label="j"> <text>The Legislative Auditor shall audit the utilization of the funds that are allocated to small, minority, and women–owned businesses by eligible fund managers under subsection (d)(2) of this section during an audit of the applicable State unit as provided in § 2–1220 of the State Government Article.</text> </level> <level label="k"> <text>In accordance with § 2.5–109 of this article, the Department shall submit a report on amounts received by and expended by the Strategic Energy Investment Fund.</text> </level> <level label="l"> <text>Notwithstanding any other provision of this section, for each of fiscal years 2026 through 2028, the following amounts shall be made available from current allocations received under § 9–1A–27 of the State Government Article from previously unspent allocations:</text> <level label="1"> <text>$1,500,000 for the Maryland Small Business Development Financing Authority established under § 5–505 of this title; and</text> </level> <level label="2"> <text>$7,500,000 for the Pre–Seed Builder Fund established under § 10–486 of this article.</text> </level> </level> <level label="m"> <level label="1"> <text>On or before June 30, 2027, and each June 30 thereafter, the Department shall publish an annual financial status report on the Department’s website.</text> </level> <level label="2"> <text>The report under this subsection shall include:</text> <level label="i"> <text>fund manager activity;</text> </level> <level label="ii"> <text>a fund manager satisfaction survey;</text> </level> <level label="iii"> <text>fund manager descriptions; and</text> </level> <level label="iv"> <text>fund manager disbursements.</text> </level> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-1601" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="16" subtitle_name="Make Office Vacancies Extinct Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Fund” means the Make Office Vacancies Extinct Matching Fund.</text> </level> <level label="c"> <text>“Program” means the Make Office Vacancies Extinct Program.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1602" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="16" subtitle_name="Make Office Vacancies Extinct Program"> <level label="a"> <text>There is a Make Office Vacancies Extinct Program in the Department.</text> </level> <level label="b"> <text>The purpose of the Program is to encourage the location of new businesses in the State in counties that provide comparable office space support to the businesses.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1603" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="16" subtitle_name="Make Office Vacancies Extinct Program"> <level label="a"> <text>In order to qualify for participation in the Program, a new business must meet the criteria in this section.</text> </level> <level label="b"> <text>The business must:</text> <level label="1"> <text>be located in a county that has a comparable support program to reduce office space vacancies in the county;</text> </level> <level label="2"> <text>be:</text> <level label="i"> <text>a home–based start–up enterprise occupying its first commercial space in the county;</text> </level> <level label="ii"> <text>a business relocating from outside the State; or</text> </level> <level label="iii"> <text>a business significantly expanding its operations in the county;</text> </level> </level> <level label="3"> <level label="i"> <text>execute a direct lease with the landlord for at least 3 years of not more than 10,000 square feet; or</text> </level> <level label="ii"> <text>obtain an occupancy permit, if sharing office space with another business; and</text> </level> </level> <level label="4"> <text>apply for support from the Program within 90 days after signing the lease or obtaining the occupancy permit.</text> </level> </level> <level label="c"> <text>The Program may exclude from support a business that is relocating from one county to another county within the State.</text> </level> <level label="d"> <text>A grant recipient that fails to fulfill the eligibility and maintenance requirements of the Program or of the county comparable program that supports the recipient may be required to return all or part of the grant to the Program.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1604" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="16" subtitle_name="Make Office Vacancies Extinct Program"> <level label="a"> <level label="1"> <text>An applicant shall submit an application for a Program grant on the form that the Secretary requires.</text> </level> <level label="2"> <text>The applicant may submit an application to the Program at the same time the applicant applies for support from a county comparable program.</text> </level> </level> <level label="b"> <text>The Program shall review the application and all supporting materials in order to evaluate whether the applicant qualifies for a grant from the Program.</text> </level> <level label="c"> <level label="1"> <text>Subject to the availability of money in the Fund, the Program may provide to an eligible business a grant that equals the amount of the grant that the county comparable program provides to the business.</text> </level> <level label="2"> <text>The Program shall provide the grants described under paragraph (1) of this subsection on a first–come, first–served basis.</text> </level> </level> <level label="d"> <text>The Program shall coordinate with county comparable programs to evaluate applications and to provide assistance to eligible businesses under this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1605" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="16" subtitle_name="Make Office Vacancies Extinct Program"> <level label="a"> <text>There is a Make Office Vacancies Extinct Matching Fund.</text> </level> <level label="b"> <text>The purpose of the Fund is to provide matching funds to reduce vacant office space in counties of the State that provide comparable support to new businesses.</text> </level> <level label="c"> <text>The Secretary shall administer the Fund.</text> </level> <level label="d"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="e"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>money recaptured from businesses that fail to fulfill the terms and conditions of a grant made from the Program;</text> </level> <level label="3"> <text>interest earnings of the Fund; and</text> </level> <level label="4"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="f"> <text>The Fund may be used only for:</text> <level label="1"> <text>matching grants that counties provide to eligible businesses under comparable vacancy reduction programs; and</text> </level> <level label="2"> <text>administrative expenses of the Program.</text> </level> </level> <level label="g"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Interest earnings of the Fund shall be credited to the Fund.</text> </level> </level> <level label="h"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1606" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="16" subtitle_name="Make Office Vacancies Extinct Program"> <text>In accordance with § 2.5–109 of this article, the Department shall submit a report on the effectiveness of the Program.</text> </section> <section article="gec" article_name="Economic Development" number="5-1607" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="16" subtitle_name="Make Office Vacancies Extinct Program"> <text>The Secretary may adopt regulations to carry out this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="5-1701" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="17" subtitle_name="Business Telework Assistance Grant Program"> <text>In this subtitle, “Program” means the Business Telework Assistance Grant Program.</text> </section> <section article="gec" article_name="Economic Development" number="5-1702" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="17" subtitle_name="Business Telework Assistance Grant Program"> <level label="a"> <text>There is a Business Telework Assistance Grant Program in the Department.</text> </level> <level label="b"> <text>The purpose of the Program is to assist and support businesses in implementing telework policies for their employees.</text> </level> <level label="c"> <text>A grant awarded under the Program may be used to purchase hardware, software, or any other technical equipment or technical services necessary for a business to implement a telework policy.</text> </level> <level label="d"> <level label="1"> <text>To qualify for a grant under the Program, a business must develop a telework policy that conforms to the best practices established by the Office of Telework Assistance under Title 3, Subtitle 6 of this article.</text> </level> <level label="2"> <text>Within 1 year after receiving a grant under the Program, a business shall submit a letter to the Department that:</text> <level label="i"> <text>describes how the grant funding was used;</text> </level> <level label="ii"> <text>includes the telework policy that was implemented using the grant funding; and</text> </level> <level label="iii"> <text>includes any invoices related to the implementation of the telework policy.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>In awarding a grant, the Department shall:</text> <level label="i"> <text>prioritize awarding grants to small businesses; and</text> </level> <level label="ii"> <text>consider:</text> <level label="1"> <text>the number of employees in the business; and</text> </level> <level label="2"> <text>the assistance needed for the business to implement a telework policy.</text> </level> </level> </level> <level label="2"> <text>The Department may require a grant recipient that fails to fulfill the requirements of the grant to return all or part of the grant to the Program.</text> </level> </level> <level label="f"> <text>The Secretary shall adopt regulations necessary to carry out this section.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1801" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="18" subtitle_name="Capital Access Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Borrower” means a business that:</text> <level label="1"> <text>qualifies as a small business under the U.S. Small Business Administration size standards;</text> </level> <level label="2"> <text>applies to a lender for business financing; and</text> </level> <level label="3"> <text>has fewer than 50 employees.</text> </level> </level> <level label="c"> <text>“Lender” means:</text> <level label="1"> <text>a credit union, as defined in § 1–101 of the Financial Institutions Article;</text> </level> <level label="2"> <text>a financial institution, as defined in § 1–101 of the Financial Institutions Article; or</text> </level> <level label="3"> <text>a community development financial institution as defined in 12 U.S.C. § 4702(5).</text> </level> </level> <level label="d"> <text>“Program” means the Capital Access Program established under § 5–1802 of this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1802" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="18" subtitle_name="Capital Access Program"> <text>There is a Capital Access Program in the Department.</text> </section> <section article="gec" article_name="Economic Development" number="5-1803" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="18" subtitle_name="Capital Access Program"> <text>The purpose of the Program is to stimulate opportunities for small businesses that may have difficulty in obtaining business financing to have access to credit by establishing a loan loss reserve program.</text> </section> <section article="gec" article_name="Economic Development" number="5-1804" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="18" subtitle_name="Capital Access Program"> <text>A loan qualifies under the Program if the loan:</text> <level label="1"> <text>satisfies the lending criteria of the financial institution;</text> </level> <level label="2"> <text>has a term not exceeding 10 years;</text> </level> <level label="3"> <text>may be short or long term, have fixed or variable rates, and be secured or unsecured; and</text> </level> <level label="4"> <text>does not exceed $250,000.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1805" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="18" subtitle_name="Capital Access Program"> <level label="a"> <text>A lender shall enroll a qualifying loan in the Program not more than 30 days after the date of the first disbursement of the loan.</text> </level> <level label="b"> <text>A lender may enroll all or a portion of a qualifying loan in an amount not more than $250,000.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1806" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="18" subtitle_name="Capital Access Program"> <level label="a"> <text>The Department shall establish a loan loss reserve account for a lender when a lender enrolls its first loan under the Program.</text> </level> <level label="b"> <text>At the time of enrollment:</text> <level label="1"> <text>the borrower shall make a payment to the account of between 0% and 7% of the enrolled loan amount;</text> </level> <level label="2"> <text>the lender shall make a payment to the account of at least 2% of the enrolled amount; and</text> </level> <level label="3"> <text>the Department shall make a matching payment to the account in an amount equal to the borrower and lender’s aggregate payment under items (1) and (2) of this subsection.</text> </level> </level> <level label="c"> <text>The loan loss reserve account of a lender shall be available for the lender to withdraw if a borrower defaults on a qualifying loan.</text> </level> <level label="d"> <text>The Department shall establish procedures for a lender to withdraw from the Program.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-1807" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="18" subtitle_name="Capital Access Program"> <text>The Department may adopt regulations to carry out this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="5-1901" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="19" subtitle_name="Cannabis Business Assistance Fund"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Fund” means the Cannabis Business Assistance Fund.</text> </level> <level label="3"> <level label="i"> <text>“Personal net worth” means the net value of the assets of an individual remaining after total liabilities are deducted, including the individual’s share of assets held jointly or as community property with the individual’s spouse.</text> </level> <level label="ii"> <text>“Personal net worth” does not include:</text> <level label="1"> <text>the individual’s ownership interest in the applicant;</text> </level> <level label="2"> <text>the individual’s equity in the individual’s primary place of residence; or</text> </level> <level label="3"> <text>the cash value of any qualified retirement savings plans or individual retirement accounts.</text> </level> </level> </level> </level> <level label="b"> <text>There is a Cannabis Business Assistance Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to assist small, minority–owned, and women–owned businesses entering the adult–use cannabis industry.</text> </level> <level label="d"> <text>The Department shall administer the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>revenue distributed to the Fund in accordance with § 2–1302.2 of the Tax – General Article; and</text> </level> <level label="3"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="g"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the Fund may be used only for:</text> <level label="i"> <text>grants or loans to small, minority–owned, or women–owned businesses for:</text> <level label="1"> <text>license application assistance for participation in the adult–use cannabis industry;</text> </level> <level label="2"> <text>assistance with the operating or capital expenses of a business participating in the adult–use cannabis industry; or</text> </level> <level label="3"> <text>targeted training to support participation in the adult–use cannabis industry;</text> </level> </level> <level label="ii"> <text>grants to historically black colleges and universities for cannabis–related programs and business development organizations, including incubators, to train and assist small, minority, and women business owners and entrepreneurs seeking to become licensed to participate in the adult–use cannabis industry;</text> </level> <level label="iii"> <text>for fiscal years 2027 through 2029, operating costs up to $5,000,000 of the Department of Social and Economic Mobility; and</text> </level> <level label="iv"> <text>the administrative costs of the Fund.</text> </level> </level> <level label="2"> <text>The Department:</text> <level label="i"> <text>shall prioritize awarding grants and loans in accordance with paragraph (1) of this subsection to:</text> <level label="1"> <text>populations that have been historically disproportionately impacted by the enforcement of laws criminalizing the use of cannabis;</text> </level> <level label="2"> <text>individuals who have been convicted of a violation of a law criminalizing the use of cannabis; and</text> </level> <level label="3"> <text>social equity licensees to assist with start–up operating and capital funding needs; and</text> </level> </level> <level label="ii"> <text>may not award grants or loans to small, minority, and women business owners and entrepreneurs with a personal net worth exceeding $1,700,000.</text> </level> </level> <level label="3"> <text>In order to award grants and loans in accordance with paragraph (1) of this subsection, the Department shall develop partnerships with:</text> <level label="i"> <text>traditional minority–serving institutions in the State and surrounding jurisdictions, including historically black colleges and universities;</text> </level> <level label="ii"> <text>trade associations representing minority and women–owned businesses; and</text> </level> <level label="iii"> <text>the Office of Small, Minority, and Women Business Affairs.</text> </level> </level> </level> <level label="h"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the Fund.</text> </level> </level> <level label="i"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2001" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="20" subtitle_name="Winery and Vineyard Economic Development Grant Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Program” means the Winery and Vineyard Economic Development Grant Program established under § 5–2002 of this subtitle.</text> </level> <level label="c"> <text>“Qualified capital expenses” means all expenditures made by an individual or a corporation for the purchase and installation of equipment or agricultural materials for use in the production of agricultural products at a vineyard or a winery, including:</text> <level label="1"> <text>barrels;</text> </level> <level label="2"> <text>bins;</text> </level> <level label="3"> <text>bottling equipment;</text> </level> <level label="4"> <text>canopy management machines;</text> </level> <level label="5"> <text>capsuling equipment;</text> </level> <level label="6"> <text>chemicals;</text> </level> <level label="7"> <text>corkers;</text> </level> <level label="8"> <text>crushers;</text> </level> <level label="9"> <text>destemmers;</text> </level> <level label="10"> <text>fermenters or other recognized fermentation devices;</text> </level> <level label="11"> <text>fertilizer and soil amendments;</text> </level> <level label="12"> <text>filters;</text> </level> <level label="13"> <text>fruit harvesters;</text> </level> <level label="14"> <text>fruit plants;</text> </level> <level label="15"> <text>hoses;</text> </level> <level label="16"> <text>irrigation equipment;</text> </level> <level label="17"> <text>labeling equipment;</text> </level> <level label="18"> <text>lugs;</text> </level> <level label="19"> <text>mowers;</text> </level> <level label="20"> <text>poles;</text> </level> <level label="21"> <text>posts;</text> </level> <level label="22"> <text>presses;</text> </level> <level label="23"> <text>pruning equipment;</text> </level> <level label="24"> <text>pumps;</text> </level> <level label="25"> <text>refractometers;</text> </level> <level label="26"> <text>refrigeration equipment;</text> </level> <level label="27"> <text>seeders;</text> </level> <level label="28"> <text>soil;</text> </level> <level label="29"> <text>small tools;</text> </level> <level label="30"> <text>tanks;</text> </level> <level label="31"> <text>tractors;</text> </level> <level label="32"> <text>vats;</text> </level> <level label="33"> <text>weeding and spraying equipment;</text> </level> <level label="34"> <text>wine tanks;</text> </level> <level label="35"> <text>wire; and</text> </level> <level label="36"> <text>any other items as approved by the Department.</text> </level> </level> <level label="d"> <text>“Vineyard” means agricultural lands located in the State consisting of at least 1 contiguous acre dedicated to the growing of grapes that are used or are intended to be used in the production of wine by a winery as well as any plants or other improvements located on the agricultural lands.</text> </level> <level label="e"> <text>“Winery” means an establishment or a location identified in:</text> <level label="1"> <text>a Class 3 winery license issued under § 2–205 of the Alcoholic Beverages and Cannabis Article; or</text> </level> <level label="2"> <text>a Class 4 limited winery license issued under § 2–206 of the Alcoholic Beverages and Cannabis Article.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-2002" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="20" subtitle_name="Winery and Vineyard Economic Development Grant Program"> <level label="a"> <text>There is a Winery and Vineyard Economic Development Grant Program in the Department.</text> </level> <level label="b"> <text>The purpose of the Program is to provide financial assistance to individuals and corporations to:</text> <level label="1"> <text>establish a new winery or vineyard in the State; or</text> </level> <level label="2"> <text>complete capital improvements at an existing winery or vineyard.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-2003" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="20" subtitle_name="Winery and Vineyard Economic Development Grant Program"> <level label="a"> <text>Subject to the limitations of this section, the Department shall provide a grant to an individual or a corporation equal to 25% of the qualified capital expenses incurred in connection with:</text> <level label="1"> <text>the establishment of a new winery or vineyard; or</text> </level> <level label="2"> <text>capital improvements made to an existing winery or vineyard.</text> </level> </level> <level label="b"> <level label="1"> <text>An individual or a corporation who paid or incurred qualified capital expenses during the immediately preceding calendar year may submit an application to the Department for a grant authorized under this section.</text> </level> <level label="2"> <level label="i"> <text>For any fiscal year, the total amount of grants approved by the Department under this section may not exceed the total appropriation for the Program for that fiscal year.</text> </level> <level label="ii"> <text>If the total amount of grants applied for under this section exceeds the maximum specified under subparagraph (i) of this paragraph, the Department shall approve a grant for each applicant in an amount equal to the product of multiplying the amount applied for by the applicant times a fraction:</text> <level label="1"> <text>the numerator of which is the maximum specified under subparagraph (i) of this paragraph; and</text> </level> <level label="2"> <text>the denominator of which is the total of all grants applied for by all applicants for that calendar year.</text> </level> </level> </level> <level label="3"> <text>The Department shall award the grants authorized under this section to each eligible applicant.</text> </level> </level> <level label="c"> <text>For each fiscal year, the Governor shall include in the annual budget bill an appropriation of at least $1,000,000 to the Department to award grants under the Program.</text> </level> <level label="d"> <text>The Department shall adopt regulations to:</text> <level label="1"> <text>implement the provisions of this section; and</text> </level> <level label="2"> <text>specify criteria and procedures for application for, approval of, and monitoring continuing eligibility for the grants authorized under this section.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-2101" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Advisory Commission” means the Advisory Commission on Maryland Alcohol Manufacturing.</text> </level> <level label="c"> <text>“Beer” has the meaning stated in § 1–101 of the Alcoholic Beverages and Cannabis Article.</text> </level> <level label="d"> <text>“Brewery” means an establishment operated under a Class 5 brewery license, Class 6 pub–brewery license, Class 7 micro–brewery license, or Class 8 farm brewery license.</text> </level> <level label="e"> <text>“Distilled spirits” has the meaning stated in § 5–101 of the Tax – General Article.</text> </level> <level label="f"> <text>“Distillery” means an establishment operated under a Class�1 distillery license or Class 9 limited distillery license.</text> </level> <level label="g"> <text>“Fund” means the Maryland Alcohol Manufacturing Promotion Fund.</text> </level> <level label="h"> <text>“Grower” means a person who:</text> <level label="1"> <text>grows grapes, hops, fruit, honey, or grain to be included in manufactured alcohol in the State; and</text> </level> <level label="2"> <text>produces at least $10,000 worth of these products each year.</text> </level> </level> <level label="i"> <text>“Viticulture” means the cultivation and study of grapes and grape vines.</text> </level> <level label="j"> <text>“Wine” has the meaning stated in § 1–101 of the Alcoholic Beverages and Cannabis Article.</text> </level> <level label="k"> <text>“Winery” means an establishment operated under a Class 3 winery license or Class 4 limited winery license.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2102" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <text>There is an Advisory Commission on Maryland Alcohol Manufacturing in the Department.</text> </section> <section article="gec" article_name="Economic Development" number="5-2103" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <level label="a"> <level label="1"> <text>The Advisory Commission consists of the following members:</text> <level label="i"> <text>the Secretary or the Secretary’s designee;</text> </level> <level label="ii"> <text>the Secretary of Agriculture, or the Secretary’s designee;</text> </level> <level label="iii"> <text>the Special Secretary of the Governor’s Office of Small, Minority, and Women Business Affairs, or the Special Secretary’s designee;</text> </level> <level label="iv"> <text>one member of the Alcohol, Tobacco, and Cannabis Commission, designated by the chair of the Alcohol, Tobacco, and Cannabis Commission;</text> </level> <level label="v"> <text>one member of the Senate of Maryland, appointed by the President of the Senate;</text> </level> <level label="vi"> <text>one member of the House of Delegates, appointed by the Speaker of the House; and</text> </level> <level label="vii"> <text>the following members appointed by the Governor:</text> <level label="1"> <text>one member representing the University of Maryland College of Agriculture and Natural Resources;</text> </level> <level label="2"> <text>two members representing breweries in the State;</text> </level> <level label="3"> <text>two members representing distilleries in the State;</text> </level> <level label="4"> <text>two members representing wineries in the State; and</text> </level> <level label="5"> <text>two members representing growers in the State.</text> </level> </level> </level> <level label="2"> <text>To the extent practicable, the members of the Commission shall reasonably reflect the geographic, racial, ethnic, cultural, and gender diversity of the State.</text> </level> </level> <level label="b"> <text>Before taking office, each member of the Advisory Commission shall take the oath required by Article I, § 9 of the Maryland Constitution.</text> </level> <level label="c"> <level label="1"> <text>The term of a member is 3 years.</text> </level> <level label="2"> <text>The terms of members are staggered as required by the terms provided for members of the Advisory Commission on July 1, 2022.</text> </level> <level label="3"> <text>At the end of a term, a member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>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.</text> </level> <level label="5"> <text>A member may not be appointed for more than two consecutive full terms.</text> </level> </level> <level label="d"> <text>The Governor may remove a member for incompetence or misconduct.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2104" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <level label="a"> <text>The Governor shall designate the chair of the Advisory Commission.</text> </level> <level label="b"> <text>From among its members, the Advisory Commission each year shall elect a vice chair.</text> </level> <level label="c"> <text>The Advisory Commission shall determine the manner of election of the vice chair and any other officers.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2105" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <level label="a"> <text>The Advisory Commission shall determine the times and places of its regular and special meetings.</text> </level> <level label="b"> <text>The chair of the Advisory Commission:</text> <level label="1"> <text>may call a special meeting at any time; and</text> </level> <level label="2"> <text>shall call a special meeting when requested by two or more members of the Advisory Commission.</text> </level> </level> <level label="c"> <text>A majority of the members then serving on the Advisory Commission is a quorum.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2106" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <text>A member of the Advisory Commission: </text> <level label="1"> <text>may not receive compensation as a member of the Advisory Commission; but</text> </level> <level label="2"> <text>is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2107" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <text>The Department shall provide staff for the Advisory Commission.</text> </section> <section article="gec" article_name="Economic Development" number="5-2108" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <text>The Advisory Commission shall:</text> <level label="1"> <text>advise and recommend to the Secretary for approval the allocation of money from the Maryland Alcohol Manufacturing Promotion Fund to eligible applicants for programs considered necessary or advisable to accomplish the purposes of this subtitle;</text> </level> <level label="2"> <text>provide a forum to address the issues that are relevant to the growth of the Maryland alcohol manufacturing industry; and</text> </level> <level label="3"> <text>identify strategies to facilitate growth of viticulture and other products used in manufactured alcohol such as hops, fruit, honey, and grain.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2109" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <level label="a"> <text>There is a Maryland Alcohol Manufacturing Promotion Fund.</text> </level> <level label="b"> <text>The purpose of the Fund is to provide grants that promote the advantages and attributes of State breweries, distilleries, and wineries and their products manufactured in the State.</text> </level> <level label="c"> <text>The Secretary shall administer the Fund.</text> </level> <level label="d"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="e"> <text>The Fund consists of:</text> <level label="1"> <text>revenue distributed to the Fund under § 2–301(b) of the Tax – General Article;</text> </level> <level label="2"> <text>money appropriated in the State budget to the Fund; and</text> </level> <level label="3"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="f"> <text>The Fund may be used only for:</text> <level label="1"> <text>grants to eligible applicants under § 5–2110 of this subtitle; and</text> </level> <level label="2"> <text>administrative expenses of the Fund.</text> </level> </level> <level label="g"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the General Fund of the State.</text> </level> </level> <level label="h"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2110" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <level label="a"> <text>An applicant for a grant from the Fund shall submit an application to the Advisory Commission on the form that the Secretary requires.</text> </level> <level label="b"> <text>To be eligible to receive a grant from the Fund, an applicant must be:</text> <level label="1"> <text>a nonprofit organization under § 501(c)(3) or (6) of the Internal Revenue Code; or</text> </level> <level label="2"> <text>a State or local governmental unit.</text> </level> </level> <level label="c"> <text>The Secretary shall award grants to eligible applicants from the Fund based on the advice of the Advisory Commission.</text> </level> <level label="d"> <text>Subject to the availability of money in the Fund, the Secretary may award grants to eligible applicants to:</text> <level label="1"> <text>foster the creation and expansion of State breweries, distilleries, and wineries;</text> </level> <level label="2"> <text>attract new visitors to State breweries, distilleries, and wineries;</text> </level> <level label="3"> <text>encourage and create incentives for special events to promote State breweries, distilleries, and wineries;</text> </level> <level label="4"> <text>educate the public about alcohol manufacturing in the State, especially the history of the industry;</text> </level> <level label="5"> <text>conduct research on, develop incentives for, and promote the growth of State agricultural products used in State manufactured beer, wine, and spirits; or</text> </level> <level label="6"> <text>support the expansion of minority ownership and participation in the operation of State breweries, distilleries, and wineries.</text> </level> </level> <level label="e"> <text>An eligible applicant may not use a grant provided under this subtitle to:</text> <level label="1"> <text>satisfy any part of a matching fund requirement of another State grant provided to the eligible applicant; or</text> </level> <level label="2"> <text>pay for activities related to lobbying, as defined in Title 5 of the General Provisions Article.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-2111" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <text>The Advisory Commission shall issue a report each year to the Governor and, in accordance with § 2–1257 of the State Government Article, the Senate Education, Health, and Environmental Affairs Committee and the House Economic Matters Committee on the Advisory Commission’s findings and recommendations.</text> </section> <section article="gec" article_name="Economic Development" number="5-2112" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="21" subtitle_name="Maryland Alcohol Manufacturing and Promotion"> <text>The Secretary may adopt regulations to carry out this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="5-2201" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 485 OF 2022" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="22" subtitle_name="Maryland New Start Microloan Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Covered individual” has the meaning stated in § 11–606 of the Labor and Employment Article.</text> </level> <level label="c"> <text>“Fund” means the Maryland New Start Microloan Program Fund.</text> </level> <level label="d"> <text>“Program” means the Maryland New Start Microloan Program.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2202" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 485 OF 2022" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="22" subtitle_name="Maryland New Start Microloan Program"> <level label="a"> <text>There is a Maryland New Start Microloan Program.</text> </level> <level label="b"> <text>The purpose of the Program is to provide loans to covered individuals participating in eligible entrepreneurship development programs.</text> </level> <level label="c"> <text>The Department, in consultation with the Governor’s Office of Small, Minority, and Women Business Affairs, shall administer the Program.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2203" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 485 OF 2022" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="22" subtitle_name="Maryland New Start Microloan Program"> <level label="a"> <text>To carry out the purpose of the Program, the Department may issue loans in accordance with this section to qualified covered individuals.</text> </level> <level label="b"> <level label="1"> <text>On a referral by an organization conducting an entrepreneurial development program under the New Start Grant Program established under § 11–606 of the Labor and Employment Article and subject to availability of funds in the Fund, a covered individual participating in that entrepreneurial development program may apply for a loan to establish a business.</text> </level> <level label="2"> <text>The referral shall include a recommendation by the organization conducting the entrepreneurial development program for the amount of the loan to be issued by the Department.</text> </level> <level label="3"> <text>The Department shall take a referral and recommendation provided by an organization conducting an entrepreneurial development program under this subsection into consideration when determining to issue a loan under this section but is not bound by the referral or recommendation.</text> </level> </level> <level label="c"> <text>A loan issued under this section may not exceed $50,000.</text> </level> <level label="d"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the Department shall specify the terms of the loan.</text> </level> <level label="2"> <text>The loan may not require the provision of any collateral.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-2204" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 485 OF 2022" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="22" subtitle_name="Maryland New Start Microloan Program"> <level label="a"> <text>There is a Maryland New Start Microloan Program Fund.</text> </level> <level label="b"> <text>The purpose of the Fund is to provide loans to covered individuals in accordance with § 5–2203 of this subtitle.</text> </level> <level label="c"> <text>The Secretary shall administer the Fund.</text> </level> <level label="d"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="e"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="2"> <text>repayments of loans made through the Program;</text> </level> <level label="3"> <text>any interest earnings of the Fund; and</text> </level> <level label="4"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="f"> <level label="1"> <text>The Fund may be used only for:</text> <level label="i"> <text>administrative costs of the Program; and</text> </level> <level label="ii"> <text>the issuance of loans under § 5–2203 of this subtitle.</text> </level> </level> <level label="2"> <text>During each fiscal year, the Department may not utilize more than 10% of the money appropriated to the Fund for administrative costs of this subtitle.</text> </level> </level> <level label="g"> <text>In each of fiscal years 2024, 2025, 2026, 2027, and 2028, the Governor shall include in the annual budget bill an appropriation of at least $300,000 to the Fund.</text> </level> <level label="h"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the Fund.</text> </level> </level> <level label="i"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2205" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 485 OF 2022" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="22" subtitle_name="Maryland New Start Microloan Program"> <text>On or before January 1, 2029, the Department shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on:</text> <level label="1"> <text>the funds included in the State budget and appropriated for the Fund for each fiscal year during the life of the Program;</text> </level> <level label="2"> <text>the implementation of the Program by the Department, including an assessment of the effectiveness of the Program; and</text> </level> <level label="3"> <text>the overall performance of the Program and impacts of the Program on loan recipients.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2206" effective_note="EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 485 OF 2022" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="22" subtitle_name="Maryland New Start Microloan Program"> <text>The Department shall adopt regulations to carry out this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="5-2401" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="24" subtitle_name="Industry 4.0 Technology Grant Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Fund” means the Industry 4.0 Technology Grant Fund.</text> </level> <level label="c"> <level label="1"> <text>“Industry 4.0 technology” means smart hardware and software manufacturing technologies.</text> </level> <level label="2"> <text>“Industry 4.0 technology” includes:</text> <level label="i"> <text>advanced sensor integration;</text> </level> <level label="ii"> <text>embedded software system applications;</text> </level> <level label="iii"> <text>robotics and autonomous equipment that collect data;</text> </level> <level label="iv"> <text>enterprise resource planning (ERP) and data analytics software;</text> </level> <level label="v"> <text>cloud computing and cybersecurity solutions;</text> </level> <level label="vi"> <text>artificial intelligence (AI) for continuous improvement of efficiency and productivity; and</text> </level> <level label="vii"> <text>infrastructure required to implement a qualifying technology.</text> </level> </level> </level> <level label="d"> <text>“Program” means the Industry 4.0 Technology Grant Program.</text> </level> <level label="e"> <text>“Program administrator” means the entity that has authority to administer the Program.</text> </level> <level label="f"> <text>“SME manufacturer” means a small or medium–sized enterprise manufacturer.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2402" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="24" subtitle_name="Industry 4.0 Technology Grant Program"> <level label="a"> <text>There is an Industry 4.0 Technology Grant Program in the Department.</text> </level> <level label="b"> <text>The Department may enter into a memorandum of understanding with a State–chartered corporation under Title 10 of this article to authorize the State–chartered corporation to administer the Program in accordance with this subtitle.</text> </level> <level label="c"> <text>The purpose of the Program is to assist SME manufacturers in the purchase, implementation, and related employee training of Industry 4.0 technology and related infrastructure in order to increase productivity, efficiency, and competitiveness in the State and national manufacturing environment.</text> </level> <level label="d"> <text>To qualify for a grant under the Program, an SME manufacturer shall submit to the Program administrator an application that demonstrates that:</text> <level label="1"> <text>the company is a qualifying SME manufacturer;</text> </level> <level label="2"> <text>the company has business operations in Maryland; and</text> </level> <level label="3"> <text>the company has been in existence for over 1 year.</text> </level> </level> <level label="e"> <level label="1"> <text>In awarding grants under the Program, the Program administrator shall award grants on a competitive basis based on:</text> <level label="i"> <text>the proposed project’s alignment with adoption of Industry 4.0 technologies;</text> </level> <level label="ii"> <text>the applicant’s demonstrated overall commitment to, or strategy for, Industry 4.0 technology adoption;</text> </level> <level label="iii"> <text>the demonstrated positive impact of the Industry 4.0 technology on the applicant’s business operations and competitiveness; and</text> </level> <level label="iv"> <text>any other information requested by the Program administrator.</text> </level> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection, the Department shall award to an eligible SME manufacturer a grant of at least $25,000, but not exceeding $500,000.</text> </level> <level label="3"> <level label="i"> <text>An SME manufacturer that receives a grant under this subsection shall provide matching funds in the amounts specified under this paragraph.</text> </level> <level label="ii"> <text>The Department shall establish a sliding scale formula for the matching funds required by an SME manufacturer to be provided a grant under this section, with SME manufacturers with fewer employees requiring a lesser percentage and SME manufacturers with more employees requiring a higher percentage.</text> </level> </level> <level label="4"> <level label="i"> <text>The Department shall reserve at least 20% of the funds available during each fiscal year for awarding grants under this subsection to SME manufacturers that employ 50 or fewer employees.</text> </level> <level label="ii"> <text>If the total amount of grants applied for by SME manufacturers that employ 50 or fewer employees is less than the amount of funds reserved under subparagraph (i) of this paragraph during a fiscal year, the Department may utilize the balance of the reserved funds for awarding grants under this subsection to SME manufacturers that employ more than 50 employees.</text> </level> </level> </level> <level label="f"> <level label="1"> <text>A grant awarded under the Program may be used for projects that directly affect manufacturing processes and focus on investments in Industry 4.0 technology commercial–ready equipment through established vendors or related infrastructure.</text> </level> <level label="2"> <text>Within 1 year after receiving a grant under the Program, an SME manufacturer shall submit to the Department a letter that:</text> <level label="i"> <text>describes how the grant funding was used; and</text> </level> <level label="ii"> <text>includes any invoices related to the implementation of the Industry 4.0 technology or related infrastructure.</text> </level> </level> <level label="3"> <text>The Department may require a grant recipient that fails to fulfill the requirements of the grant to return all or part of the grant to the Program.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-2403" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="24" subtitle_name="Industry 4.0 Technology Grant Program"> <level label="a"> <level label="1"> <text>There is an Industry 4.0 Technology Grant Fund.</text> </level> <level label="2"> <text>The Secretary shall administer the Fund.</text> </level> <level label="3"> <level label="i"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="ii"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> </level> <level label="b"> <text>The Fund consists of:</text> <level label="1"> <text>money appropriated in the State budget to the Fund; and</text> </level> <level label="2"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="c"> <text>The Fund may be used only for providing grants under the Program to eligible applicants.</text> </level> <level label="d"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the General Fund of the State.</text> </level> <level label="3"> <text>For each of fiscal years 2025 through 2028, the Governor shall include in the annual budget bill an appropriation of $1,000,000 to the Fund.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="5-2404" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="24" subtitle_name="Industry 4.0 Technology Grant Program"> <text>The Secretary shall adopt regulations necessary to carry out this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="5-2501" effective_note="EFFECTIVE UNTIL SEPTEMBER 30, 2028 PER CHAPTERS 36 AND 37 OF 2026" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="25" subtitle_name="Maryland–ireland Trade Commission"> <text>In this subtitle, “Commission” means the Maryland–Ireland Trade Commission.</text> </section> <section article="gec" article_name="Economic Development" number="5-2502" effective_note="EFFECTIVE UNTIL SEPTEMBER 30, 2028 PER CHAPTERS 36 AND 37 OF 2026" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="25" subtitle_name="Maryland–ireland Trade Commission"> <level label="a"> <text>There is a Maryland–Ireland Trade Commission in the Department.</text> </level> <level label="b"> <text>The purpose of the Commission is to study and promote trade between Maryland and Ireland.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2503" effective_note="EFFECTIVE UNTIL SEPTEMBER 30, 2028 PER CHAPTERS 36 AND 37 OF 2026" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="25" subtitle_name="Maryland–ireland Trade Commission"> <level label="a"> <text>The Commission consists of the following members:</text> <level label="1"> <text>the Secretary, or the Secretary’s designee;</text> </level> <level label="2"> <text>the Secretary of State, or the Secretary of State’s designee;</text> </level> <level label="3"> <text>one member of the Senate of Maryland, appointed by the President of the Senate, who has knowledge of organizations that promote Irish affairs, or current or past involvement in organizations that promote Irish affairs, or has an interest in the well–being of trade relations between Maryland and Ireland;</text> </level> <level label="4"> <text>one member of the House of Delegates, appointed by the Speaker of the House, who has knowledge of organizations that promote Irish affairs, or current or past involvement in organizations that promote Irish affairs, or has an interest in the well–being of trade relations between Maryland and Ireland; and</text> </level> <level label="5"> <text>the following members, appointed by the Governor, with the advice and consent of the Senate:</text> <level label="i"> <text>one representative of a public institution of higher education;</text> </level> <level label="ii"> <text>one representative of the Maryland Chamber of Commerce or its successor organization;</text> </level> <level label="iii"> <text>two representatives of the Irish–American community, who may not be of the same political party; and</text> </level> <level label="iv"> <text>two members of the private sector.</text> </level> </level> </level> <level label="b"> <text>The chair and vice chair of the Commission shall be elected from among the members of the Commission.</text> </level> <level label="c"> <text>A member of the Commission:</text> <level label="1"> <text>may not receive compensation as a member of the Commission; but</text> </level> <level label="2"> <text>is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="d"> <text>The Governor may remove an appointed member for incompetence, misconduct, or failure to perform the duties of the position.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2504" effective_note="EFFECTIVE UNTIL SEPTEMBER 30, 2028 PER CHAPTERS 36 AND 37 OF 2026" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="25" subtitle_name="Maryland–ireland Trade Commission"> <level label="a"> <text>The Commission shall study and make recommendations regarding:</text> <level label="1"> <text>advancing bilateral trade and investment between Maryland and Ireland;</text> </level> <level label="2"> <text>initiating joint action on policy issues of mutual interest to Maryland and Ireland;</text> </level> <level label="3"> <text>promoting business and academic exchanges between Maryland and Ireland;</text> </level> <level label="4"> <text>encouraging mutual economic support between Maryland and Ireland;</text> </level> <level label="5"> <text>encouraging mutual investment in the infrastructure of Maryland and Ireland; and</text> </level> <level label="6"> <text>other issues as determined by the Commission.</text> </level> </level> <level label="b"> <text>On or before December 1, 2025, and each December 1 thereafter, the Commission shall report its findings and recommendations to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2601" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="26" subtitle_name="Maryland Aerospace and Technology Commission"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Commission” means the Maryland Aerospace and Technology Commission.</text> </level> <level label="c"> <text>“Institution of higher education” means an educational institution in the State that:</text> <level label="1"> <text>by law or charter:</text> <level label="i"> <text>is a public or nonprofit educational institution; and</text> </level> <level label="ii"> <text>is authorized to provide:</text> <level label="1"> <text>a program of education beyond the high school level and award a bachelor’s or advanced degree; or</text> </level> <level label="2"> <text>a program of 2 or more years’ duration that is accepted for full credit toward a bachelor’s degree; and</text> </level> </level> </level> <level label="2"> <text>meets the standards and regulations that the Maryland Higher Education Commission prescribes and is authorized to issue a certificate, diploma, or degree under Title 12 of the Education Article.</text> </level> </level> <level label="d"> <text>“Zone” means an aerospace and technology zone designated under § 5–2607 of this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2602" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="26" subtitle_name="Maryland Aerospace and Technology Commission"> <level label="a"> <text>There is a Maryland Aerospace and Technology Commission in the Department.</text> </level> <level label="b"> <text>The purpose of the Commission is to promote innovation in the fields of space exploration and commercial aerospace opportunities, including the integration of space, aeronautics, and aviation industries into the economy of the State.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2603" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="26" subtitle_name="Maryland Aerospace and Technology Commission"> <level label="a"> <text>The Commission consists of the following members:</text> <level label="1"> <text>the Secretary, or the Secretary’s designee;</text> </level> <level label="2"> <text>a member of the Senate, appointed by the President of the Senate, who shall serve as an ex officio nonvoting member;</text> </level> <level label="3"> <text>a member of the House of Delegates, appointed by the Speaker of the House, who shall serve as an ex officio nonvoting member;</text> </level> <level label="4"> <text>the Director of the National Aeronautics and Space Administration’s Goddard Space Flight Center, or the Director’s designee, who shall serve as an ex officio nonvoting member;</text> </level> <level label="5"> <text>the president of the Goddard Contractors’ Association, or the president’s designee;</text> </level> <level label="6"> <text>the President of the University of Maryland Baltimore County, or the President’s designee;</text> </level> <level label="7"> <text>the President of the Southern Maryland Navy Alliance, or the President’s designee;</text> </level> <level label="8"> <text>the president of the Maryland Space Business Roundtable, or the president’s designee;</text> </level> <level label="9"> <text>the President of the University of Maryland, College Park, or the President’s designee;</text> </level> <level label="10"> <text>the director of the Johns Hopkins Applied Physics Laboratory, or the director’s designee;</text> </level> <level label="11"> <text>the director of the Association of Universities for Research in Astronomy, or the director’s designee;</text> </level> <level label="12"> <text>the director of the Space Telescope Science Institute, or the director’s designee; and</text> </level> <level label="13"> <text>the following members, appointed by the Governor with the advice and consent of the Senate:</text> <level label="i"> <text>a representative of institutions of higher education;</text> </level> <level label="ii"> <text>a representative of the National Society of Black Engineers;</text> </level> <level label="iii"> <text>two representatives of the Maryland aerospace manufacturing community; and</text> </level> <level label="iv"> <text>two representatives of the aerospace technology industry.</text> </level> </level> </level> <level label="b"> <text>A member of the Commission:</text> <level label="1"> <text>may not receive compensation as a member of the Commission; but</text> </level> <level label="2"> <text>is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="c"> <text>The Commission and its members are subject to the Maryland Public Ethics Law.</text> </level> <level label="d"> <level label="1"> <text>The term of an appointed member is 4 years.</text> </level> <level label="2"> <text>The terms of the appointed members are staggered as required by the terms provided for members on October 1, 2024.</text> </level> <level label="3"> <text>At the end of a term, a member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>A member who is appointed after a term has begun serves only for the rest of the term until a successor is appointed and qualifies.</text> </level> </level> <level label="e"> <text>The Governor may remove a member appointed by the Governor with or without cause.</text> </level> <level label="f"> <text>From among its members, the Commission shall elect a chair and vice chair.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2604" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="26" subtitle_name="Maryland Aerospace and Technology Commission"> <level label="a"> <text>The Department shall provide staff support to the Commission.</text> </level> <level label="b"> <text>The Commission may retain consultants as necessary.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2605" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="26" subtitle_name="Maryland Aerospace and Technology Commission"> <text>The Commission shall:</text> <level label="1"> <text>identify research and funding opportunities for entities in this State that:</text> <level label="i"> <text>strengthen and enhance the State’s leadership position in civil, commercial, and military aerospace research and development;</text> </level> <level label="ii"> <text>integrate the aerospace industry into the economy of the State;</text> </level> <level label="iii"> <text>capitalize, promote, and assist in the development of workforce training to further the development of emerging technologies required for all aspects of space exploration; and</text> </level> <level label="iv"> <text>develop public–private partnerships that advance both the State’s aerospace industry and the surrounding community;</text> </level> </level> <level label="2"> <text>establish advisory committees as needed;</text> </level> <level label="3"> <text>develop aerospace–related educational opportunities within the State in coordination with local educational institutions; and</text> </level> <level label="4"> <text>develop and annually report on progress in implementing a strategic plan developed in accordance with § 5–2606 of this subtitle to implement the goals of the Commission.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2606" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="26" subtitle_name="Maryland Aerospace and Technology Commission"> <level label="a"> <text>The Commission shall:</text> <level label="1"> <text>develop a strategic plan for the promotion of space, aeronautics, and aviation economic development in the State;</text> </level> <level label="2"> <text>update the strategic plan at least every 5 years; and</text> </level> <level label="3"> <text>annually report on progress in implementing the strategic plan.</text> </level> </level> <level label="b"> <text>The strategic plan developed under subsection (a) of this section shall include a list of potential projects that further the purposes of the Commission and, for each project, describe:</text> <level label="1"> <text>the estimated total cost for completion; and</text> </level> <level label="2"> <text>an assessment of the availability of external funding sources.</text> </level> </level> <level label="c"> <text>The strategic plan developed under subsection (a) of this section may include any other information that the Commission determines to be relevant to furthering the purposes of the Commission.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2607" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="26" subtitle_name="Maryland Aerospace and Technology Commission"> <level label="a"> <text>Subject to the limitations of this section, the Commission shall designate aerospace and technology zones within the State for the purpose of encouraging business development, facilitating land acquisition, providing educational opportunities, and promoting the aerospace industry within the boundaries of the zones.</text> </level> <level label="b"> <text>The Commission shall determine the boundaries of the zones.</text> </level> <level label="c"> <text>The Commission shall partner with local communities to promote local aerospace education opportunities within each zone and implement strategies to connect local aerospace facilities within the zone to the surrounding communities.</text> </level> </section> <section article="gec" article_name="Economic Development" number="5-2608" title_number="5" title_name="Economic Development and Financial Assistance Programs" subtitle_number="26" subtitle_name="Maryland Aerospace and Technology Commission"> <level label="a"> <text>On or before October 1 each year, the Commission shall submit a report to the Governor, the Maryland Economic Development Commission, and, in accordance with § 2–1257 of the State Government Article, the General Assembly.</text> </level> <level label="b"> <text>The report shall include:</text> <level label="1"> <text>a summary of the activities of the Commission during the preceding fiscal year;</text> </level> <level label="2"> <text>a current copy of the strategic plan developed under § 5–2606 of this subtitle; and</text> </level> <level label="3"> <text>an update on progress in implementing the strategic plan developed under this subtitle.</text> </level> </level> </section>