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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0135*
HOUSE BILL 135
C8 6lr1501
(PRE–FILED) CF SB 287
By: Delegates Schindler, Behler, and Qi
Requested: October 30, 2025
Introduced and read first time: January 14, 2026
Assigned to: Economic Matters
Committee Report: Favorable
House action: Adopted
Read second time: February 19, 2026
CHAPTER ______
AN ACT concerning 1
Economic Development – Tax Increment Financing – Noncontiguous Areas 2
FOR the purpose of authorizing the governing body of a political subdivision to designate 3
certain noncontiguous areas as development districts; and generally relating to tax 4
increment financing for noncontiguous areas. 5
BY renumbering 6
Article – Economic Development 7
Section 12–201(e) through (u) 8
to be Section 12–201(f) through (v), respectively 9
Annotated Code of Maryland 10
(2024 Replacement Volume and 2025 Supplement) 11
BY repealing and reenacting, without amendments, 12
Article – Economic Development 13
Section 12–201(a) 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2025 Supplement) 16
BY adding to 17
Article – Economic Development 18
Section 12–201(e) 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2025 Supplement) 21
2 HOUSE BILL 135
BY repealing and reenacting, with amendments, 1
Article – Economic Development 2
Section 12–201(i) 3
Annotated Code of Maryland 4
(2024 Replacement Volume and 2025 Supplement) 5
(As enacted by Section 1 of this Act) 6
BY repealing and reenacting, with amendments, 7
Article – Economic Development 8
Section 12–202 and 12–203(a)(1) 9
Annotated Code of Maryland 10
(2024 Replacement Volume and 2025 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That Section(s) 12–201(e) through (u) of Article – Economic Development of the Annotated 13
Code of Maryland be renumbered to be Section(s) 12–201(f) through (v), respectively. 14
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 15
as follows: 16
Article – Economic Development 17
12–201. 18
(a) In this subtitle the following words have the meanings indicated. 19
(E) “BLIGHTED AREA ” MEANS AN AREA IN WHI CH A MAJORITY OF 20
BUILDINGS HAVE DECLI NED IN PRODUCTIVITY BY REASON OF OBSOLES CENCE, 21
DEPRECIATION, OR OTHER CAUSES TO AN EXTENT THAT THEY NO LONGER JUSTIFY 22
FUNDAMENTAL REPAIRS AND ADEQUATE MAINTENANCE. 23
(i) (1) “Development district” means a contiguous OR NONCONTIGUOUS area 24
designated by a resolution. 25
(2) “Development district” includes an extraordinary development district. 26
12–202. 27
(a) (1) This subtitle is self–executing. 28
(2) A political subdivision need not amend its charter to exercise the 29
powers granted by this subtitle. 30
(b) (1) [This] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 31
SUBSECTION, THIS subtitle does not apply in Baltimore City. 32
HOUSE BILL 135 3
(2) THE PROVISIONS OF § 12–203(A)(1)(II) OF THIS SUBTITLE 1
PERTAINING TO NONCONTIGUOUS BLIGHTED AREAS APPLY IN BALTIMORE CITY. 2
12–203. 3
(a) Before issuing bonds, the governing body of the political subdivision shall: 4
(1) by resolution: 5
(i) designate a cont iguous area within its jurisdiction as a 6
development district; 7
(ii) DESIGNATE A NONCONTI GUOUS BLIGHTED AREA WITHIN 8
ITS JURISDICTION AS A DEVELOPMENT DISTRICT; 9
(III) identify an area that has been designated a sustainable 10
community; or 11
[(iii)] (IV) identify an area that has been designated a RISE zone; 12
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
October 1, 2026. 14
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.