Agriculture - Controlled-Environment and Hydroponic Agriculture

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1342*

HOUSE BILL 1342
M4, C8 6lr3397

By: Delegate Young
Introduced and read first time: February 12, 2026
Assigned to: Environment and Transportation

A BILL ENTITLED

AN ACT concerning 1

Agriculture – Controlled–Environment and Hydroponic Agriculture 2

FOR the purpose of authorizing grants to controlled –environment or hydroponic farmers 3
under the Urban Agriculture Water and Power Infrastructure Grant Fund; requiring 4
the Department of Agriculture to establish a certain one–stop portal as a centralized 5
source of certain information about the permitting and licensing of 6
controlled–environment or hydroponic agriculture in the State; establishing the 7
Maryland Controlled–Environment and Hydroponic Agriculture Program Fund as a 8
special, nonlapsing fund to provide grants for certain costs of establishing, 9
expanding, and maintaining a controlled –environment or hydroponic agriculture 10
facility for a certain number of pilot programs; establishing the 11
Controlled–Environment and Hydroponic Agriculture Workforce Training Initiative 12
under the Partnership for Workforce Quality Program to provide training assistance 13
to community colleges in the State for certain purposes; requiring certain legislative 14
bodies to adopt zoning regulations that provide flexibility to allow the incorporation 15
of controlled–environment and hydroponic agriculture in urban areas; establishing 16
certain overall percentage goals for procurement contracts for food from certified 17
local farms that use controlled –environment or hydroponic agriculture; making 18
permanent and increasing the General Fund appropriation to the Urban Agriculture 19
Water and Power Infrastructure Grant Fund that the Governor is required to include 20
in the annual budget bill; and generally relating to controlled –environment and 21
hydroponic agriculture. 22

BY repealing and reenacting, with amendments, 23
Article – Agriculture 24
Section 2–2103 25
Annotated Code of Maryland 26
(2016 Replacement Volume and 2025 Supplement) 27

BY adding to 28
Article – Agriculture 29
2 HOUSE BILL 1342

Section 2 –2501 and 2 –2502 to be under the new subtitle “Subtitle 25. 1
Controlled–Environment and Hydroponic Agriculture” 2
Annotated Code of Maryland 3
(2016 Replacement Volume and 2025 Supplement) 4

BY repealing and reenacting, without amendments, 5
Article – Economic Development 6
Section 3–401 through 3–403 7
Annotated Code of Maryland 8
(2024 Replacement Volume and 2025 Supplement) 9

BY repealing and reenacting, with amendments, 10
Article – Economic Development 11
Section 3–404 12
Annotated Code of Maryland 13
(2024 Replacement Volume and 2025 Supplement) 14

BY adding to 15
Article – Economic Development 16
Section 3–413 17
Annotated Code of Maryland 18
(2024 Replacement Volume and 2025 Supplement) 19

BY adding to 20
Article – Land Use 21
Section 1–401(b)(19) and 4–217 22
Annotated Code of Maryland 23
(2012 Volume and 2025 Supplement) 24

BY repealing and reenacting, with amendments, 25
Article – Land Use 26
Section 1–401(b)(19) through (32) 27
Annotated Code of Maryland 28
(2012 Volume and 2025 Supplement) 29

BY repealing and reenacting, without amendments, 30
Article – State Finance and Procurement 31
Section 14–701 32
Annotated Code of Maryland 33
(2021 Replacement Volume and 2025 Supplement) 34

BY repealing and reenacting, with amendments, 35
Article – State Finance and Procurement 36
Section 14–702 and 14–703 37
Annotated Code of Maryland 38
(2021 Replacement Volume and 2025 Supplement) 39

HOUSE BILL 1342 3

BY repealing and reenacting, with amendments, 1
Article – Tax – Property 2
Section 13–209(g)(3)(i)3. 3
Annotated Code of Maryland 4
(2019 Replacement Volume and 2025 Supplement) 5

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7

Article – Agriculture 8

2–2103. 9

(a) There is an Urban Agriculture Water and Power Infrastructure Grant Fund. 10

(b) The purpose of the Fund is to provide grants to urban agricultural producers 11
and qualified nonprofit organizations for the purchase and installation of: 12

(1) Agriculture equipment associated with water supply and irrigation; 13
and 14

(2) Electric power access. 15

(c) The Secretary shall administer the Fund. 16

(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 17
the State Finance and Procurement Article. 18

(2) The State Treasurer shall hold the Fund separately, and the 19
Comptroller shall account for the Fund. 20

(e) The Fund consists of: 21

(1) Money appropriated in the State budget to the Fund; 22

(2) Money appropriated to the Fund under § 13–209 of the Tax – Property 23
Article; and 24

(3) Any other money from any other source accepted for the benefit of the 25
Fund. 26

(f) The Fund may be used only for: 27

(1) Providing up to 87.5% of matching funds to urban agricultural 28
producers [and], qualified nonprofit organizations , AND CONTROLLED–ENVIRONMENT 29
OR HYDROPONIC FARMERS for the purchase and installation of: 30

4 HOUSE BILL 1342

(i) Water meters; 1

(ii) Water pipes; 2

(iii) Irrigation hoses; 3

(iv) Electric meters; 4

(v) Electrical lines; or 5

(vi) Any other equipment associated with water supply and irrigation 6
or electric power access the Department determines is appropriate; and 7

(2) Administrative costs for the Department to administer the Program. 8

(g) On or before October 15 each year, beginning in 2024, the Department shall 9
submit a report to the Governor and, in accordance with § 2–1257 of the State Government 10
Article, the Senate Budget and Taxation Committee and the House Appropriations 11
Committee on the effectiveness of the funding provided under this section. 12

SUBTITLE 25. CONTROLLED–ENVIRONMENT AND HYDROPONIC AGRICULTURE. 13

2–2501. 14

(A) THE DEPARTMENT SHALL ESTA BLISH A ONE–STOP PORTAL TO SERVE 15
AS A CENTRALIZED INF ORMATION SOURCE FOR INDIVIDUALS INTEREST ED IN 16
CONTROLLED–ENVIRONMENT OR HYDROPONIC AGRICULTURE. 17

(B) (1) THE PORTAL SHALL BE IN A CONSPICUOUS LOC ATION ON THE 18
DEPARTMENT’S WEBSITE WITH RESOURCES AND F REQUENTLY ASKED QUES TIONS 19
ABOUT PERMITTING AND LICENSING CONTROLLED–ENVIRONMENT OR 20
HYDROPONIC AGRICULTURE IN THE STATE. 21

(2) THE PORTAL SHALL INCLUDE CONTAC T INFORMATION FOR AN 22
INDIVIDUAL IN THE DEPARTMENT WHO CAN ASSIST THE INDIVIDUAL. 23

2–2502. 24

(A) IN THIS SECTION , “FUND” MEANS THE MARYLAND 25
CONTROLLED–ENVIRONMENT AND HYDROPONIC AGRICULTURE PROGRAM FUND. 26

(B) THERE IS A MARYLAND CONTROLLED–ENVIRONMENT AND 27
HYDROPONIC AGRICULTURE PROGRAM FUND. 28

HOUSE BILL 1342 5

(C) THE PURPOSE OF THE FUND IS TO ADVANCE 1
CONTROLLED–ENVIRONMENT AND HYDROPONIC AGRICULTURE IN THE STATE. 2

(D) THE DEPARTMENT SHALL ADMINISTER THE FUND. 3

(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 4
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 5

(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 6
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 7

(F) THE FUND CONSISTS OF: 8

(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 9
AND 10

(2) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 11
THE BENEFIT OF THE FUND. 12

(G) THE FUND MAY PROVIDE FOR UP TO FIVE GRANTS ANNUALLY THAT MAY 13
BE USED ONLY FOR: 14

(1) THE C APITAL COSTS OR OPERATING COSTS ASSOCIATED WITH 15
ESTABLISHING, EXPANDING, AND MAINTAINING A CONTROLLED–ENVIRONMENT OR 16
HYDROPONIC AGRICULTURE FACILITY; OR 17

(2) THE COST OF TECHNICAL ASSISTANCE OR CONSUL TING FEES 18
ASSOCIATED WITH ESTA BLISHING, EXPANDING, OR MAINTAINING A 19
CONTROLLED–ENVIRONMENT OR HYDROPONIC AGRICULTURE FACILITY. 20

(H) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 21
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 22

(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 23
THE GENERAL FUND OF THE STATE. 24

(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 25
WITH THE STATE BUDGET. 26

(J) FOR FISCAL YEARS 2028 AND 2029, THE GOVERNOR SHALL INCLUDE IN 27
THE ANNUAL BUDGET BILL AN APPROPRIATION OF $5,000,000 TO THE FUND. 28

Article – Economic Development 29
6 HOUSE BILL 1342

3–401. 1

(a) In this subtitle the following words have the meanings indicated. 2

(b) “Board” means the Partnership for Workforce Quality Advisory Board. 3

(c) “Fund” means the Partnership for Workforce Quality Fund. 4

(d) “Program” means the Partnership for Workforce Quality Program. 5

3–402. 6

There is a Partnership for Workforce Quality Program in the Department. 7

3–403. 8

The purpose of the Program is to provide training services to: 9

(1) improve the competitiveness and productivity of the State’s workfor ce 10
and business community; 11

(2) upgrade employee skills, or train new employees, for new technologies 12
or production processes; and 13

(3) assist employers located in the State in promoting employment 14
stability. 15

3–404. 16

(a) The Secretary or the Secretary’s designee shall direct the Program. 17

(b) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 18
SUBSECTION, THE Secretary may not provide training assistance under the Program 19
except at the specific request of an employer or group of employers. 20

(2) ON REQUEST , THE SECRETARY SHALL PROVI DE TRAINING 21
ASSISTANCE TO COMMUN ITY COLLEGES FOR THE CONTROLLED–ENVIRONMENT 22
AND HYDROPONIC AGRICULTURE WORKFORCE TRAINING INITIATIVE UNDER § 23
3–413 OF THIS SUBTITLE. 24

(c) To identify employers that need assistance, the Secretary shall use local 25
advisory groups, including private industry councils and joint apprenticeship committees. 26

(d) Subject to §§ 3–405 and 3–412(c) and (d)(1) of this subtitle, the Secretary shall 27
establish eligibility criteria and priorities for assistance under the Program. 28
HOUSE BILL 1342 7

(e) In accordance with § 2.5–109 of this article, the Secretary shall submit a report 1
on the operation and performance of the Program. 2

3–413. 3

(A) IN THIS SECTION , “INITIATIVE” MEANS THE 4
CONTROLLED–ENVIRONMENT AND HYDROPONIC AGRICULTURE WORKFORCE 5
TRAINING INITIATIVE. 6

(B) THERE IS A CONTROLLED–ENVIRONMENT AND HYDROPONIC 7
AGRICULTURE WORKFORCE TRAINING INITIATIVE IN THE PROGRAM. 8

(C) THE PURPOSE OF THE INITIATIVE IS TO PROVIDE MATCHING GRANTS TO 9
COMMUNITY COLLEGES I N THE STATE TO DEVE LOP CURRICULUM AND C OURSE 10
MATERIALS TO TRAIN A ND SUPPORT INDIVIDUA LS INVOLVED IN 11
CONTROLLED–ENVIRONMENT AND HYDROPONIC AGRICULTURE. 12

(D) ON REQUEST BY A COMMUNITY COLLEGE IN THE STATE THAT HAS 13
AGREED TO PROVIDE MA TCHING FUNDS , THE SECRETARY SHALL PROVIDE 14
TRAINING ASSISTANCE TO THE COMMUNITY COLLEGE FOR THE INITIATIVE. 15

Article – Land Use 16

1–401. 17

(b) The following provisions of this division apply to a charter county: 18

(19) § 4–217 (CONTROLLED–ENVIRONMENT AND HYDR OPONIC 19
AGRICULTURE); 20

[(19)] (20) Title 4, Subtitle 5 (Accessory Dwelling Units); 21

[(20)] (21) § 5–102(d) (Subdivision regulations – Burial sites); 22

[(21)] (22) § 5–104 (Major subdivision – Review); 23

[(22)] (23) Title 7, Subtitle 1 (Development Mechanisms); 24

[(23)] (24) Title 7, Subtitle 2 (Transfer of Development Rights); 25

[(24)] (25) except in Montgomery County or Prince George’s County, Title 26
7, Subtitle 3 (Development Rights and Responsibilities Agreements); 27

[(25)] (26) Title 7, Subtitle 4 (Inclusionary Zoning); 28
8 HOUSE BILL 1342

[(26)] (27) Title 7, Subtitle 5 (Housing Expansion and Affordability); 1

[(27)] (28) § 8–401 (Conversion of overhead facilities); 2

[(28)] (29) for Baltimore County only, Title 9, Subtitle 3 (Single –County 3
Provisions – Baltimore County); 4

[(29)] (30) for Frederick County only, Title 9, Subtitle 10 (Single –County 5
Provisions – Frederick County); 6

[(30)] (31) for Howard County only, Title 9, Subtitle 13 (Single –County 7
Provisions – Howard County); 8

[(31)] (32) for Talbot County only, Title 9, Sub title 18 (Single –County 9
Provisions – Talbot County); and 10

[(32)] (33) Title 11, Subtitle 2 (Civil Penalty). 11

4–217. 12

THE LEGISLATIVE BODY SHALL ADOPT ZONING REGULATIONS THAT PROVIDE 13
THE FLEXIBILITY TO ALLOW FOR THE INCORPORATION OF 14
CONTROLLED–ENVIRONMENT AND HYDROPONIC AGRICULTURE IN URBAN AREAS. 15

Article – State Finance and Procurement 16

14–701. 17

(a) In this subtitle the following words have the meanings indicated. 18

(b) “Certified Chesapeake invasive species” means a finfish species that is: 19

(1) ranked as high priority in the Maryland Aquatic Nuisance Species 20
Management Plan; and 21

(2) harvested from the Chesapeake Bay or its tributaries. 22

(c) “Certified Chesapeake invasive species provider” means a person licensed and 23
authorized as a seafood dealer under § 4–701 of the Natural Resources Article that: 24

(1) is certified by the Department in accordance with regulations adopted 25
under this subtitle; and 26

(2) can demonstrate that the person’s product is a certified Chesapea ke 27
invasive species. 28
HOUSE BILL 1342 9

(d) “Certified local farm” means a local farm enterprise that: 1

(1) meets the nutrient management requirements established under Title 2
8, Subtitle 8 of the Agriculture Article; and 3

(2) is certified by the Department in accordanc e with regulations adopted 4
under this subtitle. 5

(e) “Department” means the Department of Agriculture. 6

(f) “Office” means the Office for the Certified Local Farm and Fish Program. 7

(g) “Program” means the Certified Local Farm and Fish Program. 8

14–702. 9

(a) (1) There is an Office for the Certified Local Farm and Fish Program in the 10
Department. 11

(2) The purpose of the Office is to administer the Program and facilitate 12
the participation of certified local farms and certified Chesapeake invasive species 13
providers in the Program. 14

(b) (1) There is a Certified Local Farm and Fish Program in the Office. 15

(2) The purpose of the Program is to encourage each unit to try to achieve: 16

(I) an overall percentage goal of 20% of the unit’s total dollar value 17
of procurement contracts for food from certified local farms and certified Chesapeake 18
invasive species providers; AND 19

(II) AN OVERALL PERCENTAGE GOAL OF THE FOLLOWIN G 20
PERCENTAGES OF THE U NIT’S TOTAL DOLLAR VALUE OF PROCUREMENT 21
CONTRACTS FOR FOOD F ROM CERTIFIED LOCAL FARMS THAT USE 22
CONTROLLED–ENVIRONMENT OR HYDROPONIC AGRICULTURE: 23

1. 1% FOR FISCAL YEAR 2028; 24

2. 3% FOR FISCAL YEAR 2029; AND 25

3. 5% FOR FISCAL YEAR 2030 AND EACH FISCAL YEAR 26
THEREAFTER. 27

(c) The Department shall create two positions to provide staff for the Office. 28

10 HOUSE BILL 1342

(d) The Department, along with the Department of General Services, shall 1
coordinate with the State Department of Education to procure local food for local school 2
systems in accordance with § 7–136 of the Education Article. 3

14–703. 4

(a) (1) Each unit shall structure procurement procedures, consistent with the 5
purposes of this subtitle, to try to achieve: 6

(I) an overall percentage goal of 20% of the unit’s total dollar value 7
of procurement contracts for food being made directly or indirectly to certified local farms 8
and certified Chesapeake invasive species providers; AND 9

(II) AN OVERALL PERCENTAGE GOAL OF THE FOLLOWIN G 10
PERCENTAGES OF THE U NIT’S TOTAL DOLLAR VALUE OF PROCUREMENT 11
CONTRACTS FOR FOOD F ROM CERTIFIED LOCAL FARM S THAT USE 12
CONTROLLED–ENVIRONMENT OR HYDROPONIC AGRICULTURE: 13

1. 1% FOR FISCAL YEAR 2028; 14

2. 3% FOR FISCAL YEAR 2029; AND 15

3. 5% FOR FISCAL YEAR 2030 AND EACH FISCAL YEAR 16
THEREAFTER. 17

(2) A unit may achieve the [20% goal] GOALS through: 18

(i) competitive sealed bids and proposals; and 19

(ii) small procurement in accordance with § 13–109 of this article. 20

(3) For procurements conducted by competitive sealed bidding, a unit shall 21
award the contract to the responsible bidder that submits the responsive bid that: 22

(i) 1. has the lowest bid price; 23

2. has the lowest evaluated bid price; or 24

3. for procurements subject to § 11 –202(3) of this article, is 25
the bid most favorable to the State; and 26

(ii) meets or makes a good faith effort to meet any applicable goal 27
established under this subtitle. 28

(4) For procurements conducted by competitive sealed proposals, a unit 29
shall award the contract to the responsible offeror: 30
HOUSE BILL 1342 11

(i) proposing the most advantageous offer; and 1

(ii) that meets or makes a good faith effort to meet any applicable 2
goal established under this subtitle. 3

(b) The Office, in consultation with the Secretary of Agriculture, shall establish 4
guidelines for each unit to consider when determ ining the appropriate local farm and 5
Chesapeake invasive species provider participation percentage goal for a procurement 6
contract for food in accordance with subsection (c) of this section. 7

(c) Each unit shall: 8

(1) consider the practical severability of all procurement contracts for food 9
and, in accordance with § 11–201 of this article, may not bundle contracts; 10

(2) implement a program that will enable the unit to evaluate each 11
procurement contract for food to determine the appropriate local farm and Chesapeake 12
invasive species provider participation goals, if any, for the contract based on: 13

(i) the availability of certified local farms and certified Chesapeake 14
invasive species providers to respond competitively to contract opportunities; and 15

(ii) the contract goal guidelines established under subsection (b) of 16
this section; 17

(3) monitor and collect data with respect to a unit’s compliance with 18
contract goals, including explanations for failing to meet contract goals; and 19

(4) institute corrective action when a unit does not make good faith efforts 20
to comply with contract goals. 21

(d) The Office shall, in consultation with the Secretary of Agriculture, establish 22
procedures governing how the participation of certified local farms and certified 23
Chesapeake invasive species providers is counted toward contract goals under the Program. 24

(e) (1) (i) If a unit does not achieve the certified local farm and certified 25
Chesapeake invasive species provider participation goals on a procurement co ntract for 26
food, the unit shall demonstrate to the Office that the unit took all necessary and 27
reasonable steps to achieve the goals. 28

(ii) A waiver of any part of the certified local farm and certified 29
Chesapeake invasive species provider goals for a p rocurement contract for food shall be 30
granted if a unit provides to the Office a reasonable demonstration of good faith efforts to 31
achieve the goals. 32

12 HOUSE BILL 1342

(2) The Office may waive any of the requirements of this subsection 1
relating to the establishment, use, and waiver of certified local farm and certified 2
Chesapeake invasive species provider goals for a sole source, expedited, or emergency 3
procurement in which the public interest cannot reasonably accommodate use of those 4
requirements. 5

(3) Except for waiv ers granted in accordance with paragraph (2) of this 6
subsection, when a waiver determination is made, the Office shall issue the determination 7
in writing. 8

(4) On or before October 31 each year, the Office shall submit directly to 9
the Board an annual rep ort of waivers requested and waivers granted under this 10
subsection. 11

(5) The report required under paragraph (4) of this subsection shall contain 12
the following information on those procurement contracts for food where the Office 13
considered a unit’s request for waiver of all or a portion of the local farm and Chesapeake 14
invasive species provider goals: 15

(i) the contract titles, numbers, and dates; 16

(ii) the number of waiver requests received; 17

(iii) the number of waiver requests granted; and 18

(iv) any other information specifically requested by the Board. 19

(f) The Board shall keep a record of information regarding any waivers requested 20
in accordance with this section and submit a copy of the record to the Senate Committee on 21
Education, Energy, and the Environment and the House Health and Government 22
Operations Committee on or before December 31 each year, in accordance with § 2–1257 of 23
the State Government Article. 24

Article – Tax – Property 25

13–209. 26

(g) (3) (i) 3. For each [of fiscal years 2024, 2025, 2026, and 2027 ] 27
FISCAL YEAR, the Governor shall include in the annual budget bill a General Fund 28
appropriation of [$500,000] $1,000,000 to the Urban Agriculture Water and Power 29
Infrastructure Grant Fund established under § 2–2103 of the Agriculture Article. 30

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31
1, 2026. 32