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*hb1617*
HOUSE BILL 1617
J1, L2 6lr1146
By: Delegates Alston, Coley, Harrison, Ivey, Roberson, Roberts, Taylor, and Toles
Toles, Bagnall , Cullison, Guzzone, Hill, S. Johnson, Kaufman, Lopez,
Martinez, Rosenberg, Ross, Taveras, White Holland, and Woorman
Introduced and read first time: February 19, 2026
Assigned to: Rules and Executive Nominations
Re–referred to: Health, February 26, 2026
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2026
CHAPTER ______
AN ACT concerning 1
Public Health – Health Innovation Zones – Establishment 2
FOR the purpose of authorizing the local zoning authority in a county to designate a health 3
innovation zone if an area meets certain criteria; requiring a county, if the local 4
zoning authority designates a health innovation zone, to establish, by law, cert ain 5
incentives; requiring the Prince George’s County Council to designate a health 6
innovation zone in certain areas; authorizing the Prince George’s County Council to 7
designate additional health innovation zones in certain areas; requiring authorizing 8
the Governor , subject to the limitations of the State budget, to include an 9
appropriation in the annual budget bill for the Maryland Economic Development 10
Corporation to encourage certain entities to locate in a health innovation zone in 11
Prince George’s County; exempting certain entities from local zoning and land use 12
laws; and generally relating to health innovation zones. 13
BY adding to 14
Article – Health – General 15
Section 20–14A–01 through 20–14A–04 to be under the new subtitle “Subtitle 14A. 16
Health Innovation Zones” 17
Annotated Code of Maryland 18
(2023 Replacement Volume and 2025 Supplement) 19
2 HOUSE BILL 1617
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Health – General 3
SUBTITLE 14A. HEALTH INNOVATION ZONES. 4
20–14A–01. 5
IN THIS SUBTITLE , “HEALTH INNOVATION ZO NE” MEANS A CONTIGUOUS 6
GEOGRAPHIC AREA THAT: 7
(1) DEMONSTRATES MEASURAB LE AND DOCUMENTED HE ALTH 8
DISPARITIES AND POOR HEALTH OUTCOMES, INCLUDING HIGH RATES OF: 9
(I) MATERNAL HEALTH COMPLICATIONS; 10
(II) NEWBORN HEALTH COMPLICATIONS; AND 11
(III) CHRONIC AND INFECTIOUS DISEASES; 12
(2) IS POPULATED BY: 13
(I) COMMUNITIES OF COLOR; 14
(II) COMMUNITIES WITH LOW–INCOME HOUSEHOLDS; 15
(III) COMMUNITIES WITH A HIGH IMMIGRANT POPULATION; OR 16
(IV) ECONOMICALLY DISADVANTAGED COMMUNITIES; AND 17
(3) IS SMALL ENOUGH TO AL LOW FOR THE INCENTIV ES UNDER THIS 18
SUBTITLE TO HAVE A SIGNIFICANT IMPACT ON IMPROVING HEALTH OUTCOMES AND 19
REDUCING HEALTH DISP ARITIES, INCLUDING RACIAL, ETHNIC, GEOGRAPHIC, AND 20
DISABILITY–RELATED HEALTH DISPARITIES IN RURAL COMMUNITIES. 21
20–14A–02. 22
(A) SUBJECT TO § 20–14A–03 OF THIS SUBTITLE , THE LOCAL ZONING 23
AUTHORITY OF A COUNT Y MAY DESIGNATE A HE ALTH INNOVATION ZONE IF THE 24
AREA TO BE DESIGNATED: 25
(1) IS A FOOD OR HEALTH CARE DESERT; 26
HOUSE BILL 1617 3
(2) HAS A HIGH CONCENTRATION OF: 1
(I) CANCER; 2
(II) DIABETES; 3
(III) HEART DISEASE; OR 4
(IV) HYPERTENSION; AND 5
(3) HAS A LOW PREVALENCE OF GROCERY STORES , PHARMACIES, 6
PRIMARY CARE PROVIDERS, AND SPECIALTY CARE PROVIDERS. 7
(B) IF A LOCAL ZONING AUT HORITY OF A COUNTY D ESIGNATES A HEALTH 8
INNOVATION ZONE UNDER SUBSECTION (A) OF THIS SECTION, THE COUNTY SHALL 9
ESTABLISH, BY LAW, INCENTIVES THAT WILL BE PROVIDED TO GROCE RY STORES, 10
PHARMACIES, PRIMARY CARE PROVIDERS, AND SPECIALTY CARE PROVIDERS THAT 11
LOCATE IN THE HEALTH INNOVATION ZONE. 12
20–14A–03. 13
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15
(2) “MEDCO” MEANS THE MARYLAND ECONOMIC DEVELOPMENT 16
CORPORATION. 17
(3) “PRINCE GEORGE’S COUNTY BLUE LINE CORRIDOR” HAS THE 18
MEANING STATED IN § 10–601 OF THE ECONOMIC DEVELOPMENT ARTICLE. 19
(B) THIS SECTION APPLIES ONLY TO PRINCE GEORGE’S COUNTY. 20
(C) THE PRINCE GEORGE’S COUNTY COUNCIL SHALL DESIGNA TE A 21
HEALTH INNOVATION ZONE IN THE FOLLOWING AREAS: 22
(1) PRINCE GEORGE’S COUNTY BLUE LINE CORRIDOR; AND 23
(2) THE AREA LOCATED WITH IN 2 MILES OF THE BORDER BETWEEN 24
PRINCE GEORGE’S COUNTY AND THE DISTRICT OF COLUMBIA. 25
(D) THE PRINCE GEORGE’S COUNTY COUNCIL MAY DESIGNATE 26
ADDITIONAL HEALTH INNOVATION ZONES IF THE AREA TO BE DESIGNATED: 27
4 HOUSE BILL 1617
(1) IS A FOOD OR HEALTH CARE DESERT; 1
(2) HAS A HIGH CONCENTRATION OF: 2
(I) CANCER; 3
(II) DIABETES; 4
(III) HEART DISEASE; OR 5
(IV) HYPERTENSION; AND 6
(3) HAS A LOW PREVALENCE OF GROCERY STORES, PHARMACIES, 7
PRIMARY CARE PROVIDERS, AND SPECIALTY CARE PROVIDERS. 8
(E) BEGINNING IN FISCAL Y EAR 2028, THE GOVERNOR SHALL MAY, 9
SUBJECT TO THE LIMIT ATIONS OF THE STATE BUDGET, INCLUDE IN THE ANNUA L 10
BUDGET BILL AN APPRO PRIATION OF AT LEAST $5,000,000 TO MEDCO TO 11
ENCOURAGE GROCERY ST ORES, PHARMACIES, PRIMARY CARE PROVIDE RS, AND 12
SPECIALTY CARE PROVI DERS TO LOCATE IN A HEALTH INNOVATION ZO NE 13
ESTABLISHED UNDER THIS SECTION. 14
(F) BEGINNING JULY 1, 2028, MEDCO SHALL PROVIDE FUNDIN G TO 15
ENCOURAGE GROCERY ST ORES, PHARMACIES, PRIMARY CARE PROVIDE RS, AND 16
SPECIALTY CARE PROVIDERS TO ESTABLISH A BUSINESS IN A HEALTH INNOVATION 17
ZONE ESTABLISHED UNDER THIS SECTION. 18
(G) MEDCO SHALL LOOK FO R ADDITIONAL FUNDING SOURCES TO 19
ENCOURAGE HEALTH INN OVATION BUSINESS GRO WTH IN A HEALTH INNO VATION 20
ZONE ESTABLISHED UNDER THIS SECTION. 21
20–14A–04. 22
A GROCERY STORE, PHARMACY, PRIMARY CARE PROVIDE R, AND SPECIALTY 23
CARE PROVIDER LOCATE D IN A HEALTH INNOVA TION ZONE ESTABLISHED UNDER 24
THIS SUBTITLE ARE NOT SUBJECT TO LOCAL ZONING OR LAND USE LAWS. 25
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 26
October 1, 2026. 27