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HB0122 • 2026

State Aid - Nonprofits - Status

State Aid - Nonprofits - Status

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Delegates Szeliga , Chisholm , Fisher , Grammer , M. Morgan , and Nawrocki
Last action
2026-01-21
Official status
In the House - Hearing 1/27 at 2:00 p.m.
Effective date
2026-07-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

State Aid - Nonprofits - Status

Prohibiting a unit of State government or other State entity that provides State aid from providing State aid to a nonprofit entity unless the nonprofit is current with certain obligations under federal, State, and local law.

What This Bill Does

  • Prohibiting a unit of State government or other State entity that provides State aid from providing State aid to a nonprofit entity unless the nonprofit is current with certain obligations under federal, State, and local law.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-21 House

    Hearing 1/27 at 2:00 p.m.

  2. 2026-01-14 House

    First Reading Government, Labor, and Elections

  3. 2025-10-30 House

    Pre-filed

  4. Maryland General Assembly

    Text - First - State Aid - Nonprofits - Status

Official Summary Text

Prohibiting a unit of State government or other State entity that provides State aid from providing State aid to a nonprofit entity unless the nonprofit is current with certain obligations under federal, State, and local law.

Current Bill Text

Read the full stored bill text 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0122*

HOUSE BILL 122
B1, Q7, C2 6lr1504
(PRE–FILED)
By: Delegates Szeliga, Chisholm, Fisher, Grammer, M. Morgan, and Nawrocki
Requested: October 30, 2025
Introduced and read first time: January 14, 2026
Assigned to: Government, Labor, and Elections

A BILL ENTITLED

AN ACT concerning 1

State Aid – Nonprofits – Status 2

FOR the purpose of prohibiting a unit of State government or other State entity that 3
provides State aid from providing State aid to a nonprofit entity unless the nonprofit 4
satisfies certain requirements; and generally relating to State aid and nonprofits. 5

BY adding to 6
Article – State Finance and Procurement 7
Section 7–407 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12

Article – State Finance and Procurement 13

7–407. 14

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 15
INDICATED. 16

(2) “CHARTER” HAS THE MEANING STAT ED IN § 1–101 OF THE 17
CORPORATIONS AND ASSOCIATIONS ARTICLE. 18

(3) “GRANTOR” MEANS A UNIT OF STATE GOVERNMENT OR O THER 19
STATE ENTITY THAT PROVIDES STATE AID TO A NONPROFIT ENTITY. 20

2 HOUSE BILL 122

(4) “STATE AID ” MEANS A CONTRIBUTION , GRANT, OR SUBSIDY 1
PROVIDED THROUGH THE STATE OPERATING OR CA PITAL BUDGET OR BY T HE 2
ACTION OF A UNIT OF STATE GOVERNMENT FROM STATE FUNDS APPROPRIATED TO 3
THAT UNIT. 4

(B) A GRANTOR MAY NOT PROV IDE STATE AID TO A NONPROFIT ENTITY 5
UNLESS THE NONPROFIT ENTITY: 6

(1) IS IN GOOD STANDING WITH THE INTERNAL REVENUE SERVICE; 7

(2) IS CURRENT ON ANY FEDER AL, STATE, OR LOCAL TAX 8
OBLIGATIONS; 9

(3) HAS A CURRENT CHARTE R ON FILE WITH THE STATE 10
DEPARTMENT OF ASSESSMENTS AND TAXATION; AND 11

(4) IF REQUIRED, HAS FILED FOR THE MOST RECENT TAX YEAR: 12

(I) A FORM 990 WITH THE INTERNAL REVENUE SERVICE; OR 13

(II) A PERSONAL PROPERTY TAX RETURN WITH THE STATE 14
DEPARTMENT OF ASSESSMENTS AND TAXATION. 15

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
1, 2026. 17