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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
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SENATE BILL 284
B1 (6lr0341)
ENROLLED BILL
— Budget and Taxation/Appropriations —
Introduced by The President (By Request – Administration)
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at __ ______________________ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Budget Reconciliation and Financing Act of 2026 2
FOR the purpose of altering or repealing certain required appropriations; authorizing and 3
requiring the use of certain funds for certain purposes; altering the composition of 4
certain funds; authorizing the transfer of certain funds; authorizing, requiring, or 5
altering the distribution of certain revenue; altering the Senator John A. Cade 6
Funding Formula for community colleges; altering the calculation for State aid to 7
Baltimore City Community College; altering the program of State aid to private 8
nonprofit institutions of higher education known as the Joseph A. Sellinger Program; 9
requiring certain counties to reimburse the Maryland Department of Health for a 10
certain percentage of the costs associated with establishing certain assisted 11
outpatient treatment programs, except under certain circumstances; authorizing the 12
Secretary of Health to establish the retention period for prescription monitoring data 13
and naloxone medication data through regulation by repealing the 3–year retention 14
requirement in statute; prohibiting the Prince George’s County Council from 15
2 SENATE BILL 284
allocating any part of the Maryland –National Capital Park and Planning 1
Commission budget allocable solely to Prince George’s County in a certain manner; 2
prohibiting, except under certain circumstances, the Prince George’s County Planning 3
Board from ma king or awarding grants; altering eligibility for certain programs; 4
requiring, for certain fiscal years, the Comptroller to pay grants in a certain amount 5
to certain counties; requiring the Executive Director of the Governor’s Office of Crime 6
Prevention an d Policy, the Secretary of Budget and Management, and the 7
Comptroller to take certain actions related to the noncompliance of a county or 8
qualifying municipality with certain State laws; requiring the Governor to publish 9
certain budget books online instead of providing the books; altering the amount that 10
county governments are required to pay toward the retirement costs for certain local 11
employees; specifying an amount that the Maryland Department of Labor is required 12
to reimburse a certain Local Reserve Ac count; providing that certain provisions of 13
law related to the escheatment of certain unclaimed money held by an electric 14
cooperative do not apply to the escheatment of certain credits on or before a certain 15
date; requiring that a motor vehicle be at least a certain number of years old in order 16
to be eligible for registration as a historic motor vehicle; providing certain 17
modifications to federal adjusted gross income of an individual or federal taxable 18
income of a corporation for Maryland income tax purpos es relating to certain 19
depreciation deductions allowed under the federal income tax; altering the total 20
amount of final income tax credit certificates under the More Jobs for Marylanders 21
Program that the Department of Commerce may issue for a certain fisca l year; 22
increasing for a certain tax year, and reducing for a certain tax year, the total amount 23
of the Student Loan Debt Relief Tax Credits that the Maryland Higher Education 24
Commission may certify; delaying the application of certain provisions of law altering 25
the definition of “pass–through entity’s taxable income” for purposes of the Maryland 26
income tax; altering the calculation of the State income tax imposed on certain 27
pass–through entities; altering a requirement that the Maryland Department of 28
Health apply to participate in a certain program for a certain fiscal year; delaying 29
the effective date of certain provisions of law related to hotel rental taxes; altering 30
the membership, duties, and reporting requirements for the Maryland Reparations 31
Commission; and generally relating to the financing of State and local government. 32
BY repealing and reenacting, without amendments, 33
Article – Agriculture 34
Section 2–1901(a)(1) and (3) and (b), 10–401(a), (d), and (e), and 10–402(a) 35
Annotated Code of Maryland 36
(2016 Replacement Volume and 2025 Supplement) 37
BY repealing and reenacting, with amendments, 38
Article – Agriculture 39
Section 2–1901(e) and 10–407(d) 40
Annotated Code of Maryland 41
(2016 Replacement Volume and 2025 Supplement) 42
BY repealing and reenacting, without amendments, 43
Article – Economic Development 44
SENATE BILL 284 3
Section 5–1901(a)(1) and (2) and (b) and 13–601(a) and (c) 1
Annotated Code of Maryland 2
(2024 Replacement Volume and 2025 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – Economic Development 5
Section 5–1901(g)(1) and (3)(iii) and 13–611(b)(3) 6
Annotated Code of Maryland 7
(2024 Replacement Volume and 2025 Supplement) 8
BY repealing and reenacting, without amendments, 9
Article – Education 10
Section 2–305(b), 7–414.1(a), (b), and (f)(1) and (5), and 7–447.1(p)(1) and (3) 11
Annotated Code of Maryland 12
(2025 Replacement Volume and 2025 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Education 15
Section 2–305(g), 7–414.1(f)(4), and 7–447.1(p)(9)(vi) and 7–1A–01(l) 16
Annotated Code of Maryland 17
(2025 Replacement Volume and 2025 Supplement) 18
BY repealing and reenacting, without amendments, 19
Article – Education 20
Section 11–602(a) and (c), 16–305(a), (b)(1) and (11), and (c)(3), 16–512(a) and (b)(2), 21
17–101, 17–104(d), 18–3602(a) and (b), 18–3701(a) and (f), and 18–3802(a) and 22
(b) 23
Annotated Code of Maryland 24
(2022 Replacement Volume and 2025 Supplement) 25
BY repealing and reenacting, with amendments, 26
Article – Education 27
Section 11–602(j), 16–305(d), 16 –512(b)(1)(xiii) and (xiv), 1 7–104(a), 18–3605, 28
18–3704, and 18–3806 29
Annotated Code of Maryland 30
(2022 Replacement Volume and 2025 Supplement) 31
BY adding to 32
Article – Education 33
Section 16–512(b)(1)(xv) and (xvi) 34
Annotated Code of Maryland 35
(2022 Replacement Volume and 2025 Supplement) 36
BY repealing and reenacting, without amendments, 37
Article – Health – General 38
Section 5–626(a), (b), and (c) and, 10–6A–03(a) and (b), 13–5602(a), 21–2A–02(a), and 39
21–2A–04(a) and (b)(1) and (9) 40
4 SENATE BILL 284
Annotated Code of Maryland 1
(2023 Replacement Volume and 2025 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Health – General 4
Section 5–626(g), 10–6A–03(c), and 13–1015, 13–5602(f), and 21–2A–04(b)(8) 5
Annotated Code of Maryland 6
(2023 Replacement Volume and 2025 Supplement) 7
BY repealing and reenacting, without amendments, 8
Article – Health Occupations 9
Section 14–207(a) and 17–206(a) 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2025 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Health Occupations 14
Section 14–207(e)(1) and 17–206(d)(1) 15
Annotated Code of Maryland 16
(2021 Replacement Volume and 2025 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – Insurance 19
Section 1–101(b) 20
Annotated Code of Maryland 21
(2017 Replacement Volume and 2025 Supplement) 22
BY adding to 23
Article – Insurance 24
Section 15–148 25
Annotated Code of Maryland 26
(2017 Replacement Volume and 2025 Supplement) 27
BY repealing and reenacting, without amendments, 28
Article – Labor and Employment 29
Section 11–603(a)(1) and (3) and 11–1501(a) and (f) 30
Annotated Code of Maryland 31
(2025 Replacement Volume) 32
BY repealing and reenacting, with amendments, 33
Article – Labor and Employment 34
Section 11–603(g) and 11–1506 35
Annotated Code of Maryland 36
(2025 Replacement Volume) 37
BY repealing and reenacting, without amendments, 38
Article – Land Use 39
SENATE BILL 284 5
Section 14–101(a) and (b) and 25–101 1
Annotated Code of Maryland 2
(2012 Volume and 2025 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – Land Use 5
Section 18–106 6
Annotated Code of Maryland 7
(2012 Volume and 2025 Supplement) 8
BY adding to 9
Article – Land Use 10
Section 25–102 11
Annotated Code of Maryland 12
(2012 Volume and 2025 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Local Government 15
Section 16–501(a) and 16–505 16
Annotated Code of Maryland 17
(2013 Volume and 2025 Supplement) 18
BY repealing and reenacting, without amendments, 19
Article – Local Government 20
Section 16–501(b) 21
Annotated Code of Maryland 22
(2013 Volume and 2025 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Local Government 25
Section 20–403(a), (b)(1) and (2), and (c)(1) and 20–434(a), (b), and (d)(1) 26
Annotated Code of Maryland 27
(2013 Volume and 2025 Supplement) 28
(As enacted by Chapter 638 of the Acts of the General Assembly of 2025) 29
BY repealing and reenacting, with amendments, 30
Article – Local Government 31
Section 20–403(d) and 20–434(e) 32
Annotated Code of Maryland 33
(2013 Volume and 2025 Supplement) 34
(As enacted by Chapter 638 of the Acts of the General Assembly of 2025) 35
BY repealing and reenacting, without amendments, 36
Article – Natural Resources 37
Section 5–903(a)(1) 38
Annotated Code of Maryland 39
(2023 Replacement Volume and 2025 Supplement) 40
6 SENATE BILL 284
BY repealing and reenacting, with amendments, 1
Article – Natural Resources 2
Section 5–903(a)(2)(i) and (i) and 8–709(e) 5–903(i) 3
Annotated Code of Maryland 4
(2023 Replacement Volume and 2025 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – Public Safety 7
Section 1–308(a) and (b)(1) 4–501(a), (e), and (k), 4–503(a), and 4–504(a) through (c) 8
Annotated Code of Maryland 9
(2022 Replacement Volume and 2025 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – Public Safety 12
Section 1–308(b)(2)(x) and (xi) 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2025 Supplement) 15
BY adding to 16
Article – Public Safety 17
Section 1–308(b)(2)(xii) 4–510 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2025 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – State Finance and Procurement 22
Section 5A–303(a)(1) and (30) and (d)(1), (2)(i), and (4)(i) and (ii)1., 7 –115(a) 23
5A–330(a)(1) through (5), (8), and (9), (b)(1) and (2), and (c)(1), (3), and (5) , 24
7–311(a) and (b), and 7 –317(a), (g)(1), and (i) 7–317(a), (g) (1), and (i), and 25
7–330(b) 26
Annotated Code of Maryland 27
(2021 Replacement Volume and 2025 Supplement) 28
BY repealing and reenacting, with amendments, 29
Article – State Finance and Procurement 30
Section 5A–303(d)(4)(iv), 7–115(b) 5A–330(c)(6) and (h) , 7–311(e), and 7–317(g)(6) 31
and (h) 7–317(g)(6) and (h), and 7–330(g) and (k) 32
Annotated Code of Maryland 33
(2021 Replacement Volume and 2025 Supplement) 34
BY repealing and reenacting, without amendments, 35
Article – State Government 36
Section 9–20B–02, 9–20B–05(a), 21–201(a), (c), (d), and (h), and 21–205(a)(1) 37
Annotated Code of Maryland 38
(2021 Replacement Volume and 2025 Supplement) 39
SENATE BILL 284 7
BY repealing and reenacting, with amendments, 1
Article – State Government 2
Section 9–120(b)(1)(iv) and (xii), 9–20B–03, 9–20B–05(f)(13), (g)(3), and (i)(1), and 3
21–205(c)(1) 4
Annotated Code of Maryland 5
(2021 Replacement Volume and 2025 Supplement) 6
BY adding to 7
Article – State Government 8
Section 9–20B–05(i)(5) and (6) 9
Annotated Code of Maryland 10
(2021 Replacement Volume and 2025 Supplement) 11
BY repealing and reenacting, without amendments, 12
Article – State Personnel and Pensions 13
Section 21–304(a) and (b)(1), (4)(i) and (iii), and (5) 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – State Personnel and Pensions 18
Section 21–304(b)(6) 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2025 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – Tax – General 23
Section 2–606(b), 10–102.1(a)(1) and (b), and 10–740(a), (b), and (i) 24
Annotated Code of Maryland 25
(2022 Replacement Volume and 2025 Supplement) 26
BY repealing and reenacting, with amendments, 27
Article – Tax – General 28
Section 2–606(i), 10–102.1(a)(8) and (d) and 10–210.1, 10–210.1, and 10–740(c) and 29
(g) 10–740(c) and (g), and 10–741 30
Annotated Code of Maryland 31
(2022 Replacement Volume and 2025 Supplement) 32
BY repealing and reenacting, without amendments, 33
Article – Tax – Property 34
Section 13–209(a), (b), (e), and (h) 13–209(h) 35
Annotated Code of Maryland 36
(2019 Replacement Volume and 2025 Supplement) 37
BY repealing and reenacting, with amendments, 38
Article – Tax – Property 39
Section 13–209(c), (d), and (g)(3) 13–209(g)(3) 40
8 SENATE BILL 284
Annotated Code of Maryland 1
(2019 Replacement Volume and 2025 Supplement) 2
BY repealing and reenacting, without amendments, 3
Article – Transportation 4
Section 13–955(a) and (e) and 17–106(a), (b), (c), (d), and (e)(1) 5
Annotated Code of Maryland 6
(2020 Replacement Volume and 2025 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – Transportation 9
Section 13–936 and 13–955(f) and 17–106(e)(2) 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2025 Supplement) 12
BY repealing and reenacting, with amendments, 13
Chapter 275 of the Acts of the General Assembly of 2023 14
Section 2 15
BY adding to 16
Chapter 212 of the Acts of the General Assembly of 2025 17
Section 2 18
BY repealing and reenacting, with amendments, 19
Chapter 212 of the Acts of the General Assembly of 2025 20
Section 2 21
BY adding to 22
Chapter 213 of the Acts of the General Assembly of 2025 23
Section 2 24
BY repealing and reenacting, with amendments, 25
Chapter 213 of the Acts of the General Assembly of 2025 26
Section 2 27
BY repealing and reenacting, with amendments, 28
Chapter 604 of the Acts of the General Assembly of 2025 29
Section 35 30
BY repealing and reenacting, with amendments, 31
Chapter 638 of the Acts of the General Assembly of 2025 32
Section 2 33
BY repealing and reenacting, without amendments, 34
Chapter 9 of the Acts of the General Assembly of the 2025 Special Session 35
Section 1(b) 36
SENATE BILL 284 9
BY repealing and reenacting, with amendments, 1
Chapter 9 of the Acts of the General Assembly of the 2025 Special Session 2
Section 1(c)(7), (12), and (13) and (g)(1) and 2 3
BY adding to 4
Chapter 9 of the Acts of the General Assembly of the 2025 Special Session 5
Section 1(c)(13) through (15) and (17) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Agriculture 9
2–1901. 10
(a) (1) In this subtitle the following words have the meanings indicated. 11
(3) “Program” means the Maryland Healthy Soils Program. 12
(b) There is a Maryland Healthy Soils Program. 13
(e) (1) In each of fiscal years 2024 through [2028] 2026, the Governor sh all 14
include in the annual budget bill an appropriation of at least $500,000 for the Program. 15
(2) IN EACH OF FISCAL YEARS 2027 AND 2028, THE GOVERNOR SHALL 16
INCLUDE IN THE ANNUAL BUDGET BILL AN APPROPRIATION OF AT LEAST $400,000 17
FOR THE PROGRAM. 18
10–401. 19
(a) In this subtitle the following words have the meanings indicated. 20
(d) “Native Plant Specialist” means the University of Maryland Extension agent 21
hired under § 10–403 of this subtitle. 22
(e) “Program” means the Maryland Native Plants Program. 23
10–402. 24
(a) There is a Maryland Native Plants Program. 25
10–407. 26
(d) For fiscal year 2025 and [each fiscal year thereafter] FISCAL YEAR 2026, the 27
Governor shall include in the annual budget bill an appropriation of $150,000 for the 28
10 SENATE BILL 284
University of Maryland Extension to hire one extension agent as a Native Plant Specialist 1
and $100,000 for the Department to hire staff to administer the Program. 2
Article – Economic Development 3
5–1901. 4
(a) (1) In this section the following words have the meanings indicated. 5
(2) “Fund” means the Cannabis Business Assistance Fund. 6
(b) There is a Cannabis Business Assistance Fund. 7
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only 8
for: 9
(i) grants or loans to small, minority –owned, or women–owned 10
businesses for: 11
1. license application assistance for participation in the 12
adult–use cannabis industry; 13
2. assistance with the operating or capital expenses of a 14
business participating in the adult–use cannabis industry; or 15
3. targeted training to support participation in the adult–use 16
cannabis industry; 17
(ii) grants to historically black colleges and universities for 18
cannabis–related programs and business development organizations, including incubators, 19
to train and assist small, minority, and women business owners and entrepreneurs seeking 20
to become licensed to participate in the adult–use cannabis industry; [and] 21
(III) FOR FISCAL YEARS 2027 THROUGH 2029, OPERATING COSTS 22
UP TO $5,000,000 OF THE DEPARTMENT OF SOCIAL AND ECONOMIC MOBILITY; AND 23
[(iii)] (IV) the administrative costs of the Fund. 24
(3) In order to award grants and loans in accordance with paragraph (1) of 25
this subsection, the Department shall develop partnerships with: 26
(iii) the [Governor’s] Office of Small, Minority, and Women Business 27
Affairs. 28
13–601. 29
SENATE BILL 284 11
(a) In this subtitle the following words have the meanings indicated. 1
(c) “Council” means the Tri–County Council for Southern Maryland. 2
13–611. 3
(b) (3) (i) The Governor shall include in the State budget for the following 4
fiscal year an appropriation to partially support the Council. 5
(ii) 1. A. For [fiscal year 2024 and each fiscal year 6
thereafter] FISCAL YEARS 2024 THROUGH 2026, the Governor shall include in the 7
annual budget bill an appr opriation of $1,000,000 to the Council from the Cigarette 8
Restitution Fund established under § 7–317 of the State Finance and Procurement Article. 9
B. FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR 10
THEREAFTER, THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN 11
APPROPRIATION OF $700,000 TO THE COUNCIL FROM THE CIGARETTE 12
RESTITUTION FUND ESTABLISHED UNDE R § 7–317 OF THE STATE FINANCE AND 13
PROCUREMENT ARTICLE. 14
2. The Council shall use funds appropriated from the 15
Cigarette Restitution Fund for the purpose of funding the activities of the Southern 16
Maryland Agricultural Development Commission. 17
3. The appropriation required under subsubparagraph 1 of 18
this subparagraph shall be in addition to, and may not supplant, any funding appropriated 19
to the Council. 20
Article – Education 21
2–305. 22
(b) (1) There is a Lacrosse Opportunities Program in the Department. 23
(2) The purpose of the Lacrosse Opportunities Program is to increase 24
opportunities for minority students to participate in lacrosse in their communities. 25
(g) For fiscal year 2014 and each fiscal year thereafter, the Governor [shall] MAY 26
include in the annual budget submission at least $40,000 for the Lacrosse Opportunities 27
Program. 28
7–1A–01. 29
(l) “Tier II child” means a child: 30
(1) Who is 4 years old; 31
12 SENATE BILL 284
(2) (i) In fiscal year 2026, whose family income is more than 300% but 1
not more than 360% of the federal poverty level; [and] 2
(ii) IN FISCAL YEAR 2027, WHOSE FAMILY INCOME IS MORE 3
THAN 300% BUT NOT MORE THAN 450% OF THE FEDERAL POVERTY LEVEL; AND 4
(III) In fiscal year [2027] 2028 and in each fiscal year thereafter, 5
whose family income is more than 300% but not more than 600% of the federal poverty 6
level; and 7
(3) Whose family chooses to enroll the child in full–day prekindergarten. 8
7–447.1. 9
(p) (1) In this subsection, “Fund” means the Coordinated Community Supports 10
Partnership Fund. 11
(3) The purpose of the Fund is to support the delivery of services and 12
supports provided to students to meet their holistic behavioral health needs and address 13
other related challenges. 14
(9) The Governor shall include in the annual budget bill the following 15
appropriations for the Fund: 16
(vi) [$100,000,000] $80,000,000 in fiscal year 2027 and each fiscal 17
year thereafter. 18
11–602. 19
(a) In th is section, “Fund” means the Legal Representation Fund for Title IX 20
Proceedings. 21
(c) The purpose of the Fund is to provide funds for reasonable costs and attorney’s 22
fees for students provided with counsel under § 11–601 of this subtitle. 23
(j) Beginning in fiscal year 2021, the Governor shall include in the annual budget 24
bill an appropriation of at least $250,000 to the [Fund] PROGRAM. 25
16–305. 26
(a) The formula used for the distribution of funds to the community colleges in 27
the State shall be known as the Senator John A. Cade Funding Formula. 28
(b) (1) In this section the following words have the meanings indicated. 29
SENATE BILL 284 13
(11) “State share” means the amount of money for community college 1
operating funds to be provided each fiscal year to a board by the State. 2
(c) (3) Subject to subsection (d) of this section, the total State share for each 3
board shall be the sum of: 4
(i) The base costs component; and 5
(ii) The size factor component. 6
(d) (1) In each fiscal year, in order for a board to receive an increase in the 7
State share of support, the county share, in the aggregate, that supports the community 8
college or colleges shall equal or exceed the aggregate amount of operating fund 9
appropriations made to the board by the county or all of the counties supporting the college 10
in the previous fiscal year. 11
(2) FOR FISCAL YEARS 2027 THROUGH 2029, THE STATE SHARE, AS 12
DETERMINED UNDER SUB SECTION (C)(3) OF THIS SECTION , MAY NOT EXCEED AN 13
INCREASE OF 3% OVER THE STATE SHARE PROVIDED TO EACH COMMUNITY 14
COLLEGE IN THE IMMEDIATELY PRECEDING FISCAL YEAR. 15
16–512. 16
(a) In this section, “State Funds per full –time equivalent student appropriation 17
to the 4 –year public institutions of higher education” has the meaning stated in § 18
17–104(a)(1) of this article. 19
(b) (1) The total State operating fund per full –time equivalent student 20
appropriated to Baltimore City Community College for each fiscal year other than fiscal 21
year 2013, as requested by the Governor shall be: 22
(xiii) In fiscal year 2022, not less than an amount equal to 66.5% of the 23
State’s General Fund appropriation per full –time equivalent student to the 4 –year public 24
institutions of higher education in the State as designated by the Commission for the 25
purpose of administering the Joseph A. Sellinger Program under Title 17 of this article in 26
the same fiscal year; [and] 27
(xiv) In fiscal [year 2023 and each fiscal year thereafter] YEARS 2023 28
THROUGH 2026, not less than an amount equal to 68.5% of the State Funds per full–time 29
equivalent student appropriation to the 4 –year public institutions of higher education in 30
the State as designated by the Commission for the purpose of administering the Joseph A. 31
Sellinger Program under Title 17 of this article; AND 32
(XV) IN FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER 33
YEARS 2027 THROUGH 2029, NOT LESS THAN AN AMOUNT EQUAL TO 67.5% OF THE 34
STATE FUNDS PER FULL –TIME EQUIVALENT STUD ENT APPROPRIATION TO THE 35
14 SENATE BILL 284
4–YEAR PUBLIC INSTITUT IONS OF HIGHER EDUCA TION IN THE STATE AS 1
DESIGNATED BY THE COMMISSION FOR THE PU RPOSE OF A DMINISTERING THE 2
JOSEPH A. SELLINGER PROGRAM UNDER TITLE 17 OF THIS ARTICLE; AND 3
(XVI) IN FISCAL YEAR 2030 AND EACH FISCAL YEAR THEREAFTER, 4
NOT LESS THAN AN AMOUNT EQUAL TO 68.5% OF THE STATE FUNDS PER FULL–TIME 5
EQUIVALENT STUDENT APPROPRIATION TO THE 4–YEAR PUBLIC INSTITUTIONS OF 6
HIGHER EDUCATION IN THE STATE AS DESIGNATED BY THE COMMISSION FOR THE 7
PURPOSE OF ADMINISTERING THE JOSEPH A. SELLINGER PROGRAM UNDER TITLE 8
17 OF THIS ARTICLE. 9
(2) For purposes of this subsection, the State Funds per full –time 10
equivalent student appropriation to the 4 –year public institutions of higher education in 11
the State for a fiscal year shall include: 12
(i) Noncapital appropriations from the Higher Education 13
Investment Fund; and 14
(ii) Appropriations, regardless of where they are budgeted, 15
designated for the general operation of 4–year public institutions of higher education in the 16
State, including personnel–related appropriations. 17
17–101. 18
There is a program of State aid to private nonprofit institutions of higher education 19
known as the Joseph A. Sellinger Program. 20
17–104. 21
(a) (1) (i) In this subsection, “State Funds per full–time equivalent student 22
appropriation to the 4 –year public institutions of higher education” shall be calculated in 23
accordance with this paragraph using the General Fund and Higher Education Investment 24
Fund actual expenditures for the second previous fiscal year. 25
(ii) The total number of full –time equivalent students is based on 26
credit hour production for the second previous fiscal year. 27
(iii) The number of undergraduate full –time equivalent students 28
shall be calculated using total undergraduate credit hour production divided by 30. 29
(iv) 1. Except as provided in subsubparagraph 2 of this 30
subparagraph, the number of graduate full –time equivalent students shall be calculated 31
based on a methodology agreed to by the University System of Maryland Office, Morgan 32
State University, and St. Mary’s College of Maryland, in consultation with the Commission. 33
SENATE BILL 284 15
2. If a methodology is not agre ed to on or before September 1
16, 2024, the Commission shall determine the methodology used to calculate the number 2
of graduate full–time equivalent students. 3
(v) The Commission shall certify the number of full–time equivalent 4
students for each institution on or before October 1 each year. 5
(2) (I) [In] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 6
PARAGRAPH, IN fiscal year 2025 and each fiscal year thereafter, the Maryland Higher 7
Education Commission shall compute the amount of the annual apportionm ent for each 8
institution that qualifies under this subtitle by multiplying the number of full –time 9
equivalent undergraduate students enrolled at the institution during the fall semester of 10
the fiscal year preceding the fiscal year for which the aid apporti onment is made, as 11
determined by the Maryland Higher Education Commission, by an amount not less than 12
16.1% of the State Funds per full –time equivalent student appropriation to the 4 –year 13
public institutions of higher education in this State. 14
(II) IN E ACH OF FISCAL YEARS 2027 THROUGH 2029, THE 15
ANNUAL APPORTIONMENT FOR EACH INSTITUTION THAT QUALIFIES UNDER THIS 16
SUBTITLE IS: 17
1. CAPITOL TECHNOLOGY UNIVERSITY – $914,981; 18
2. GOUCHER COLLEGE – $3,168,940; 19
3. HOOD COLLEGE – $3,611,811; 20
4. JOHNS HOPKINS UNIVERSITY – $20,554,298; 21
5. LOYOLA UNIVERSITY OF MARYLAND – $12,550,328; 22
6. MARYLAND INSTITUTE COLLEGE OF ART – 23
$3,745,718; 24
7. MCDANIEL COLLEGE – $5,945,264; 25
8. MOUNT ST. MARY’S UNIVERSITY – $5,476,872; 26
9. NOTRE DAME OF MARYLAND UNIVERSITY – 27
$2,037,187; 28
10. ST. JOHN’S COLLEGE – $1,701,410; 29
11. STEVENSON UNIVERSITY – $9,206,521; 30
16 SENATE BILL 284
12. WASHINGTON ADVENTIST UNIVERSITY – $1,367,650; 1
AND 2
13. WASHINGTON COLLEGE – $3,041,744. 3
(d) For purposes of this sect ion, the State’s General Fund appropriation per 4
full–time equivalent student to the 4 –year public institutions of higher education in the 5
State for a fiscal year shall include: 6
(1) Noncapital appropriations from the Higher Education Investment 7
Fund; and 8
(2) Appropriations, regardless of where they are budgeted, designated for 9
the general operation of 4 –year public institutions of higher education in the State, 10
including personnel–related appropriations. 11
18–3602. 12
(a) There is a program of Maryland Community College Promise Scholarships in 13
the State that are awarded under this subtitle. 14
(b) The purpose of the program is to provide tuition assistance for students to 15
attend a community college in the State. 16
18–3605. 17
(a) Through fiscal year 2025, the Governor shall include an annual appropriation 18
of at least $15,000,000 in the State budget for the Commission to disburse Maryland 19
Community College Promise Scholarships under this subtitle. 20
(b) For fiscal year 2026 [and each fiscal year thereafter ], the Governor shall 21
include an annual appropriation of at least $13,500,000 in the State budget for the 22
Commission to disburse Maryland Community College Promise Scholarships under this 23
subtitle. 24
(C) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, THE 25
GOVERNOR SHALL INCLUDE AN ANNUAL APPROPRIATION OF AT LEAST $12,500,000 26
IN THE STATE BUDGET FOR THE COMMISSION TO DISBURS E MARYLAND 27
COMMUNITY COLLEGE PROMISE SCHOLARSHIPS UNDER THIS SUBTITLE. 28
18–3701. 29
(a) In this subtitle the following words have the meanings indicated. 30
SENATE BILL 284 17
(f) “Program” means the Maryland Loan Assistance Repayment Program for 1
Police Officers and Probation Agents. 2
18–3704. 3
(a) For fiscal year 2025, the Governor shall include in the annual budget bill an 4
appropriation of at least $500,000 for the Program. 5
(b) For fiscal year 2026 [and each fiscal year thereafter ], the Governor shall 6
include in the annual budget bill an appropriation of at least $2,000,000 for the Program. 7
(C) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, THE 8
GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDG ET BILL AN APPROPRIATION OF 9
AT LEAST $500,000 FOR THE PROGRAM. 10
18–3802. 11
(a) There is a Maryland Police Officers and Probation Agents Scholarship 12
Program. 13
(b) The purpose of the program is to provide tuition assistance for students who 14
are: 15
(1) Attending an eligible institution and enrolled in a degree program that 16
would further the student’s intent to become a police officer or probation agent after 17
graduation; or 18
(2) Employed as a police officer or pr obation agent, attending an eligible 19
institution, and enrolled in a degree program that would further the police officer’s or 20
probation officer’s career. 21
18–3806. 22
(a) For fiscal year 2025, the Governor shall include in the annual budget bill an 23
appropriation of at least $500,000 to the Commission to award scholarships under this 24
subtitle. 25
(b) For fiscal year 2026 [and each fiscal year thereafter ], the Governor shall 26
include in the annual budget bill an appropriation of at least $2,000,000 to the Commission 27
to award scholarships under this subtitle. 28
(C) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, THE 29
GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDG ET BILL AN APPROPRIATION OF 30
AT LEAST $500,000 TO THE COMMISSION TO AWARD S CHOLARSHIPS UNDER TH IS 31
SUBTITLE. 32
18 SENATE BILL 284
Article – Health – General 1
5–626. 2
(a) In this section, “Fund” means the Advance Directive Program Fund. 3
(b) There is an Advance Directive Program Fund. 4
(c) The purpose of the Fund is to provide funding to carry out the purposes of the 5
Advance Directive Program established under § 5–620 of this subtitle. 6
(g) (1) [Money] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 7
SUBSECTION, MONEY in the Fund may be used only to carry out the purposes of the 8
Advance Directive Program established under § 5–620 of this subtitle. 9
(2) IN FISCAL YEAR 2027 ONLY, $1,000,000 OF THE FUND MAY BE 10
USED FOR MATERNAL AN D CHILD HEALTH QUALI TY INITIATIVES IN TH E 11
DEPARTMENT. 12
10–6A–03. 13
(a) (1) On or before July 1, 2026, a county may establish an assisted outpatient 14
treatment program in accordance with this subtitle. 15
(2) A county may partner with another county to establish an assisted 16
outpatient treatment program. 17
(b) An assisted outpatient treatment program established under subsection (a) of 18
this section shall be approved and overseen by the county’s local behavioral health 19
authority or core service agency. 20
(c) (1) On or before July 1, 2026, the Department shall establish an assisted 21
outpatient treatment program in any county that does not opt to establish an assisted 22
outpatient treatment program. 23
(2) A COUNTY IN WHICH THE DEPARTMENT IS REQUIRE D TO 24
ESTABLISH AN ASSISTE D OUTPATIENT TREATME NT PROGRAM SHALL REI MBURSE 25
THE DEPARTMENT: 26
(I) FOR EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS 27
SUBSECTION, FOR FISCAL YEAR 2028, FOR 25% OF THE STATE SHARE OF 28
ASSOCIATED COSTS; 29
(II) FOR FISCAL YEAR 2029, FOR 50% OF THE STATE SHARE OF 30
ASSOCIATED COSTS; 31
SENATE BILL 284 19
(III) FOR FISCAL YEAR 2030, FOR 75% OF THE STATE SHARE OF 1
ASSOCIATED COSTS; AND 2
(IV) FOR FISCAL YEAR 2031, FOR 100% OF THE STATE SHARE OF 3
ASSOCIATED COSTS. 4
(3) (I) ON OR BEFORE AUGUST 31, 2026, THE DEPARTMENT SHALL 5
PROVIDE TO EACH COUN TY THE NUMBER OF ASS ISTED OUTPATIENT TRE ATMENT 6
PROGRAM PARTICIPANTS IN THE COUNTY AND TH E ESTIMATED ANNUAL C OST TO 7
PROVIDE TREATMENT TO THOSE PARTICIPANTS. 8
(II) FOR FISCAL YEAR 2028, THE OBLIGATION TO PROVIDE 25% 9
OF THE STATE SHARE OF ASSOCI ATED COSTS SHALL BE WAIVED FOR ANY COUNT Y 10
THAT PROVIDES A REPORT TO THE DEPARTMENT ON OR BEFORE JANUARY 1, 2027, 11
ON THE COST –BENEFIT ANALYSIS OF THE IMPL EMENTATION OF THE AS SISTED 12
OUTPATIENT TREATMENT PROGRAM ON THE COUNTY BUDGET AND OPERATIONS. 13
13–1015. 14
(a) For fiscal year 2011 and fiscal year 2012, the Governor shall include at least 15
$6,000,000 in the annual budget in appropriations for activities aimed at reducing tobacco 16
use in Maryland as recommended by the Centers for Disease Control and Prevention, 17
including: 18
(1) Media campaigns aimed at reducing smoking initiation and 19
encouraging smokers to quit smoking; 20
(2) Media campaigns educating the public about the dangers of secondhand 21
smoke exposure; 22
(3) Enforcement of existing laws banning the sale or distribution of tobacco 23
products to individuals under the age of 21 years; 24
(4) Promotion and implementation of smoking cessation programs; and 25
(5) Implementation of school–based tobacco education programs. 26
(b) (1) For fiscal years 2013 through 2021, the Governor shall include at least 27
$10,000,000 in the annual budget in appropriations for the purposes described in 28
subsection (a) of this section. 29
(2) For fiscal [year 2022 and each fiscal year thereafter ] YEARS 2022 30
THROUGH 2026, the Governor shall include at least $18,250,000 in the annual budget in 31
appropriations for the purposes described in subsection (a) of this section. 32
20 SENATE BILL 284
(3) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, 1
THE GOVERNOR SHALL INCLUDE AT LEAST $17,520,000 IN THE ANNUAL BUDGET IN 2
APPROPRIATIONS FOR T HE PURPOSES DESCRIBE D IN SUBSECTION (A) OF THIS 3
SECTION. 4
13–5602. 5
(a) There is a Population Health Improvement Fund. 6
(f) (1) Subject to paragraph (2) of this subsection AND EXCEPT AS PROVIDED 7
UNDER PARAGRAPH (3) OF THIS SUBSECTION, the Fund may be used only for expenses 8
associated with statewide population health improvement initiatives in alignment with the 9
statewide health equity plan as directed by the Secretary. 10
(2) [Activities] EXCEPT AS PROVIDED UNDER PARAGRAPH (3) OF THIS 11
SUBSECTION, ACTIVITIES paid for by the Fund must support the goal of meeting the 12
statewide population health targets outlined in the AHEAD Model State Agreement with the 13
[Center] CENTERS for Medicare and Medicaid Services and have at least one of the 14
following functions: 15
(i) Reducing rates of common preventable health conditions; 16
(ii) Addressing health–related social needs; or 17
(iii) Reducing or eliminating health disparities. 18
(3) IN CALENDAR YEAR 2026 ONLY, UP TO $14,000,000 IN THE FUND 19
MAY BE USED TO FUND EXPENSES OF THE MEDICAL CARE PROGRAMS 20
ADMINISTRATION WITHIN THE DEPARTMENT IF THE HEALTH SERVICES COST 21
REVIEW COMMISSION INCREASES HOSPITAL RATES TO PR OVIDE FINANCIAL 22
ASSISTANCE TO MEDICARE ADVANTAGE PLANS. 23
21–2A–02. 24
(a) There is a Prescription Drug Monitoring Program in the Department. 25
21–2A–04. 26
(a) The Secretary, in consultation with the Board, shall adopt regulations to carry 27
out this subtitle. 28
(b) The regulations adopted by the Secretary shall: 29
(1) Specify the prescription monitoring data and naloxone medication data 30
required to be submitted under § 21–2A–03 of this subtitle; 31
SENATE BILL 284 21
(8) Establish requirements for Program retention of prescription 1
monitoring data and naloxone medication data [for 3 years]; and 2
(9) Require that: 3
(i) Confidential or privileged patient information be kept 4
confidential; and 5
(ii) Records or information protected by a privilege between a health 6
care provider and a patient, or otherwise required by law to be held confidential, be filed in 7
a manner that, except as otherwise provided in §§ 21 –2A–06 and 21 –2A–06.1 of this 8
subtitle, does not disclose the identity of the person protected. 9
Article – Health Occupations 10
14–207. 11
(a) There is a Board of Physicians Fund. 12
(e) (1) (I) The Fund shall be used exclusively to cover the actual 13
documented direct and indirect costs of fulfilling the statutory and regulatory duties of the 14
Board as provided by this title. 15
(II) FOR FISCAL YEAR 2027 ONLY, $2,000,000 OF THE FUND 16
BALANCE MAY BE USED TO SUPPORT THE PROGR AMS IN THE OFFICE OF 17
POPULATION HEALTH IMPROVEMENT WITHIN THE DEPARTMENT. 18
17–206. 19
(a) There is a State Board of Professional Counselors and Therapists Fund. 20
(d) (1) (I) [The] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 21
PARAGRAPH, THE Fund shall be used to cover the actual documented direct and indirect 22
costs of fulfilling the statutory and regulatory duties of the Board as provided by the 23
provisions of this article. 24
(II) FOR FISCAL YEAR 2027 ONLY, $500,000 OF THE FUND 25
BALANCE MAY BE USED TO SUPPORT PROGRAMS IN THE BEHAVIORAL HEALTH 26
ADMINISTRATION OF THE DEPARTMENT. 27
Article – Insurance 28
1–101. 29
(b) “Administration” means the Maryland Insurance Administration. 30
22 SENATE BILL 284
15–148. 1
(A) THIS SECTION APPLIES TO: 2
(1) INSURERS AND NONPROF IT HEALTH SERVICE PL ANS THAT 3
PROVIDE HOSPITAL, MEDICAL, OR SURGICAL BENEFITS TO INDIVIDUALS OR GROUPS 4
ON AN EXPENSE –INCURRED BASIS UNDER HEALTH INSURANCE POL ICIES OR 5
CONTRACTS THAT ARE ISSUED OR DELIVERED IN THE STATE; AND 6
(2) HEALTH MAINTENANCE ORGANI ZATIONS THAT PROVIDE 7
HOSPITAL, MEDICAL, OR SURGICAL BENEFITS TO INDIVIDUALS OR GR OUPS UNDER 8
CONTRACTS THAT ARE ISSUED OR DELIVERED IN THE STATE. 9
(B) THE ADMINISTRATION SHALL ORDER THE TRANSFER O F FUNDS FROM 10
EACH ENTITY MAINTAIN ING A SEGREGATED ACCOUNT I N ACCORDANCE WITH § 11
1303(B)(2)(B) AND (C) OF THE FEDERAL PATIENT PROTECTION AND AFFORDABLE 12
CARE ACT TO THE DEDICATED PURPOSE ACCOUNT FOR THE PURPOSES OF HEALTH 13
CARE ACCESS GRANTS AS FOLLOWS: 14
(1) ON OR BEFORE JULY 1, 2026, 90% OF THE AMOUNT OF THE 15
ENDING BALANCE OF THE SEGREGATED ACCOUNT THAT EXCEEDS DISBURSEMENTS 16
FOR EACH OF THE PLAN YEARS 2014 THROUGH 2024; AND 17
(2) ON OR BEFORE JULY 1, 2027, AND EACH JULY 1 THEREAFTER, 90% 18
OF THE AMOUNT OF THE ENDING BALANCE OF A SEGREGATED ACCO UNT THAT 19
EXCEEDS DISBURSEMENTS AFTER THE 15–MONTH PERIOD FOLLOWING THE END OF 20
A PLAN YEAR. 21
Article – Labor and Employment 22
11–603. 23
(a) (1) In this section the following words have the meanings indicated. 24
(3) “Program” means the Public Safety Apprenticeship Program. 25
(g) (1) For fiscal [year 2021 and each fiscal year thereafter ] YEARS 2021 26
THROUGH 2025, the Governor shall include in the State budget an appropriation of at 27
least $750,000 for the Program to: 28
[(1)] (I) provide grants to eligible public safety agencies; and 29
[(2)] (II) cover the administrative costs of operating the Program. 30
SENATE BILL 284 23
(2) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR THEREAFTER, 1
THE GOVERNOR SHALL INCLUDE IN THE STATE BUDGET AN APPROPRIATION OF AT 2
LEAST $390,000 FOR THE PROGRAM TO: 3
(I) PROVIDE GRANTS TO EL IGIBLE PUBLIC SAFETY AGENCIES; 4
AND 5
(II) COVER THE ADMINISTRA TIVE COSTS OF OPERAT ING THE 6
PROGRAM. 7
11–1501. 8
(a) In this subtitle the following words have the meanings indicated. 9
(f) “Program” means the Career Pathways for Health Care Workers Program. 10
11–1506. 11
(a) (1) Through fiscal year 2024, the Governor shall include in the annual 12
budget bill an appropriation of at least $1,000,000 for the Program. 13
(2) For fiscal [year] YEARS 2025 and [each fiscal year thereafter ] 2026, 14
the Governor shall include in the annual budget bill an appropriation of at least $500,000 15
for the Program. 16
(3) FOR FISCAL YEAR 2027 AND EACH FISCAL YEAR THEREAFTER, 17
THE GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDGET BILL AN APPROPRIATION 18
OF AT LEAST $350,000 FOR THE PROGRAM. 19
(b) Appropriations and expenditures made for the purpose of implementing the 20
Program, including the use of any funds received by a person under any component of the 21
Program, are subject to audit by the Office of Legislative Audits as provided in § 2–1220 of 22
the State Government Article. 23
Article – Land Use 24
14–101. 25
(a) In this division the following words have the meanings indicated. 26
(b) “Commission” means the Maryland –National Capital Park and Planning 27
Commission. 28
18–106. 29
24 SENATE BILL 284
(a) After public notice, each county council shall hold a public hearing on the 1
Commission’s proposed budgets at least 21 days after receiving the budgets from the county 2
executive. 3
(b) On or before June 1 of each year, each county council shall, by resolution: 4
(1) approve the portion of the budgets allocable to that county, with any 5
alterations made under subsection (c) of this section; and 6
(2) subject to the requirements and limitations of Subtitles 3 and 4 of this 7
title and Title 21 of this article, impose taxes in the amounts the county council determines 8
to be necessary to finance the portion of the budgets allocable to that county. 9
(c) (1) [Each] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, EACH 10
county council may add to, delete from, increase, or decrease any part of the budgets 11
allocable solely to that county. 12
(2) (I) THIS PARAGRAPH APPLIE S ONLY IN PRINCE GEORGE’S 13
COUNTY. 14
(II) IN PRINCE GEORGE’S COUNTY, THE COUNTY COUNCIL MAY 15
NOT ALLOCATE ANY PART OF THE BUDGETS ALLOCABLE SOLELY TO THE COUNTY TO: 16
1. THE COUNTY COUNCIL; OR 17
2. UNLESS APPROVED ON O R BEFORE JUNE 1 IN 18
ACCORDANCE WITH SUBSECTION (B) OF THIS SECTION: 19
A. THE PRINCE GEORGE’S COUNTY GOVERNMENT , 20
INCLUDING A GOVERNMENTAL UNIT OF THE COUNTY; OR 21
B. ANY THIRD–PARTY BUSINESS ENTITY OR INDIVIDUAL. 22
(d) (1) Budget items allocable to both counties as submitted by the Commission 23
shall be concurred in by both county councils. 24
(2) The county councils may concur in additions to, deleti ons from, 25
increases to, or decreases from budget items allocable to both counties. 26
(3) Failure of the county councils to concur in any budget item allocable to 27
both counties by June 15 shall constitute approval of the item as submitted by the 28
Commission. 29
25–101. 30
This title applies only in Prince George’s County. 31
SENATE BILL 284 25
25–102. 1
EXCEPT AS OTHERWISE PROVIDED IN THIS DIVISION, THE COUNTY PLANNING 2
BOARD MAY NOT MAKE OR AWARD GRANTS. 3
Article – Local Government 4
16–501. 5
(a) (1) Subject to subsection (e) of this section AND EXCEPT AS PROVIDED IN 6
PARAGRAPH (2) OF THIS SUBSECTION, for each fiscal year, the Comptroller shall pay to 7
an eligible county a grant in the amount determined under subsection (c)(3) of this section. 8
(2) IN EACH OF FISCAL YEA RS 2027 THROUGH 2029, THE 9
COMPTROLLER SHALL PAY TO THE FOLLOWING COU NTIES AND BALTIMORE CITY 10
THE FOLLOWING AMOUNTS IN QUARTERLY PAYMENTS: 11
(I) ALLEGANY COUNTY – $7,298,505; 12
(II) BALTIMORE CITY – $79,051,790; 13
(III) CAROLINE COUNTY – $3,894,753; 14
(IV) DORCHESTER COUNTY – $4,159,010; 15
(V) GARRETT COUNTY – $2,047,408; 16
(VI) PRINCE GEORGE’S COUNTY – $56,889,464; 17
(VII) SOMERSET COUNTY – $7,251,732; 18
(VIII) WASHINGTON COUNTY – $2,507,251; AND 19
(IX) WICOMICO COUNTY – $13,502,951. 20
(b) A county may not receive a grant under subsection (a) of this section if any of 21
the county’s income tax rates were less than 2.6%: 22
(1) for the taxable year that ended in the second prior fiscal year; or 23
(2) for any subsequent taxable year through the taxable year that ends in 24
the current fiscal year. 25
16–505. 26
26 SENATE BILL 284
(a) (1) For each of fiscal years 2025 [through 2028] AND 2026, the Governor 1
shall include in the annual budget bill an appropriation of $500,000 to the Prince George’s 2
County Office of the Count y Executive to be used for the Prince George’s County Reentry 3
Employment Incentive Program under § 10–334 of the Prince George’s County Code. 4
(2) FOR EACH OF FISCAL YE ARS 2027 AND 2028, THE GOVERNOR 5
SHALL INCLUDE IN THE BUDGET BILL AN APPRO PRIATION OF $350,000 TO THE 6
PRINCE GEORGE’S COUNTY OFFICE OF THE COUNTY EXECUTIVE TO BE USED FOR 7
THE PRINCE GEORGE’S COUNTY REENTRY EMPLOYMENT INCENTIVE PROGRAM 8
UNDER § 10–334 OF THE PRINCE GEORGE’S COUNTY CODE. 9
(b) The funds provided under this section shall be supp lemental to, and may not 10
supplant, funds otherwise available for reentry employment incentives in Prince George’s 11
County. 12
Article – Natural Resources 13
8–709. 14
(e) (1) (I) Notwithstanding any other provision of law, for fiscal year 2026 15
[and each fiscal year thereafter], the Department shall distribute at least $250,000 from 16
the Waterway Improvement Fund to a statewide Maryland –based historic preservation 17
nonprofit organization with demonstrated experience in grantmaking. 18
(II) NOTWITHSTANDING ANY O THER PROVISION OF LAW , FOR 19
FISCAL YEAR 2029 AND EACH FISCAL YEAR THEREAFTER, THE DEPARTMENT SHALL 20
DISTRIBUTE AT LEAST $250,000 FROM THE WATERWAY IMPROVEMENT FUND TO A 21
STATEWIDE MARYLAND–BASED HISTORIC PRESE RVATION NONPROFIT 22
ORGANIZATION WITH DEMONSTRATED EXPERIENCE IN GRANTMAKING. 23
(2) A nonprofit organization shall use any funds received under this 24
subsection to establish, operate, and administer a maritime heritage competitive grant 25
program to provide grants to nonprofit organizations in the State and instrumentalities of 26
the State, counties, or municipalities engaged in maritime heritage preservation, 27
interpretation, or conservation. 28
(3) On or before November 30 each year, a nonprofit organization that 29
receives funds under this subsection shall submit a report to the Department on the 30
guidelines, promotion, selection, recipients, and impact of the organization’s competitive 31
grant program. 32
Article – Public Safety 33
1–308. 34
SENATE BILL 284 27
(a) There is a 9–1–1 Trust Fund. 1
(b) (1) Except as provided in paragraph (2) of this subsection and subject to § 2
1–309.1 of this subtitle, the purposes of the 9–1–1 Trust Fund are to: 3
(i) reimburse counties for the cost of enhancing a 9–1–1 system; 4
(ii) pay contractors in accordance with § 1–306(b)(12) of this subtitle; 5
and 6
(iii) fund the coordinator position and staff to handle the increased 7
duties related to wireless enhanced 9 –1–1 service under § 1 –305 of this subtitle, as an 8
administrative cost. 9
(2) Subject to paragraph (3) of this subsection, in addition to the purp oses 10
described under paragraph (1) of this subsection, the purposes of the 9 –1–1 Trust Fund 11
include funding: 12
(x) costs of telecommunications cardiopulmonary resuscitation 13
training; [and] 14
(xi) costs related to the operation of the 9 –8–8 suicide prev ention 15
hotline that may be shared with 9 –1–1 activities, including software interfaces and joint 16
training; AND 17
(XII) FOR FISCAL YEAR 2026 AND EACH FISCAL YEAR 18
THEREAFTER, PROGRAM OPERATIONS O F THE MARYLAND DEPARTMENT OF 19
EMERGENCY MANAGEMENT. 20
4–501. 21
(a) In this subtitle the following words have the meanings indicated. 22
(e) “Executive Director” means the Executive Director of the Governor’s Office of 23
Crime Prevention and Policy. 24
(k) “Qualifying municipality” means a municipality that: 25
(1) (i) has expenditures for police protection that exceed $5,000; and 26
(ii) employs at least one full–time qualified police officer; or 27
(2) (i) has expenditures for police protection that exceed $80,000; and 28
(ii) employs at least two part –time qualified po lice officers from a 29
county police department or county sheriff’s department. 30
28 SENATE BILL 284
4–503. 1
(a) There is a State Aid for Police Protection Fund. 2
4–504. 3
(a) The Executive Director shall administer the Fund. 4
(b) The Executive Director shall: 5
(1) certify to the Comptroller, counties, and qualifying municipalities the 6
amount of payments under this subtitle to the counties and qualifying municipalities; and 7
(2) adopt regulations and require reports that are necessary to certify the 8
amounts. 9
(c) In administering the Fund, the Executive Director shall: 10
(1) make a continuing effort to establish standards of police protection 11
adequate to the various local situations; and 12
(2) subject to § 2–1257 of the State Government Article, report periodically 13
to the General Assembly on progress in establishing and meeting those standards, 14
including the payment amounts certified under subsection (b) of this section and any other 15
relevant fiscal information. 16
4–510. 17
(A) IN THIS SECTION , “IMMIGRATION ENFORCEM ENT AG REEMENT” HAS 18
THE MEANING STATED IN § 5–104.1 OF THE CRIMINAL PROCEDURE ARTICLE. 19
(B) IF THE EXECUTIVE DIRECTOR FINDS THAT A COUNTY OR QUALIFYING 20
MUNICIPALITY IS NOT COMPLYING WITH STATE LAW RELATED TO IMMIGRATION 21
ENFORCEMENT AGREEMEN TS, THE EXECUTIVE DIRECTOR SHALL NOTIFY TH E 22
COUNTY OR QUALIFYING MUNICIPALITY OF THE NONCOMPLIANCE. 23
(C) IF A COUNTY OR QUALIFYING MUNICIPALITY DISPUTES THE FINDING IN 24
THE NOTICE ISSUED UN DER SUBSECTION (B) OF THIS SECTION WITH IN 30 DAYS 25
AFTER THE ISSUANCE O F THE NOTICE , THE D ISPUTE SHALL BE PROM PTLY 26
REFERRED TO THE SECRETARY OF BUDGET AND MANAGEMENT, WHO SHALL MAKE 27
A FINAL DETERMINATION. 28
(D) ON RECEIPT OF CERTIFI CATION OF NONCOMPLIA NCE BY THE 29
EXECUTIVE DIRECTOR OR THE SECRETARY OF BUDGET AND MANAGEMENT, THE 30
SENATE BILL 284 29
COMPTROLLER SHALL SUS PEND, UNTIL NOTIFICATION O F COMPLIANCE IS 1
RECEIVED, PAYMENT OF: 2
(1) ANY FUNDS DUE THE COUNTY OR QUALIFYING MUNICIPALITY FOR 3
THE CURRENT FISCAL YEAR UNDER § 4–506 OF THIS SUBTITLE; AND 4
(2) ANY ENHANCED OR DISC RETIONARY FUNDING F OR POLICE 5
PROTECTION DUE THE COUNTY OR QUALIFYING MUNICIPALITY FOR THE CURRENT 6
FISCAL YEAR. 7
Article – State Finance and Procurement 8
5A–303. 9
(a) (1) In this section the following words have the meanings indicated. 10
(30) “Small commercial project” means a rehabilitation of a structure if: 11
(i) the qualified rehabilitation expenditures do not exceed $500,000; 12
and 13
(ii) 1. the structure is primarily used for commercial, 14
income–producing purposes; 15
2. the structure: 16
A. is a residential unit in a consecutive series of similar 17
residential units that are arranged in a row, side by side; and 18
B. is sold as part of a development project for exclusive 19
occupancy to, and occupied by, the resident; 20
3. the structure is a targeted project; or 21
4. the structure is a condominium or cooperative project and 22
the rehabilitation targets only the common elements of the condominium or cooperative 23
project. 24
(d) (1) (i) In this subsection the following words have the meanings 25
indicated. 26
(ii) “Reserve Fund” means the Historic Revitalization Tax Credit 27
Reserve Fund established under paragraph (2) of this subsection. 28
(iii) “Trust Account” means the Small Commercial Project Trust 29
Account established under paragraph (4) of this subsection. 30
30 SENATE BILL 284
(2) (i) There is a Historic Revitalization Tax Credit Reserve Fund that 1
is a continuing, nonlapsing special fund that is not subject to § 7–302 of this article. 2
(4) (i) Within the Reserve Fund, there is a Small Commercial Project 3
Trust Account. 4
(ii) 1. The Trust Account is established for the issuance of tax 5
credit certificates for small commercial projects. 6
(iv) 1. For each of fiscal years 2024 through [2031] 2026, the 7
Governor shall include in the budget bill an appropriation to the Trust Account of at least 8
$2,000,000. 9
2. FOR EACH OF FISCAL YE ARS 2027 THROUGH 2031, 10
THE GOVERNOR SHALL INCLUDE IN THE BUDGET BILL AN APPROPRIATION TO THE 11
TRUST ACCOUNT OF AT LEAST $500,000. 12
5A–330. 13
(a) (1) In this section the following words have the meanings indicated. 14
(2) “AAHP Grant Fund” means the African American Heritage 15
Preservation Grant Fund of the Trust. 16
(3) “African American Heritage Grant” means a grant made under the 17
Program for an African American Heritage Preservation Project or that is an African 18
American Heritage Preservation Noncapital Grant. 19
(4) “African American Heritage Preservation Noncapital Grant” means a 20
grant awarded under this section for the purpose of preserving or sharing African American 21
history or culture in the State. 22
(5) “African American Heritage Preservation Project” means a capital 23
project that: 24
(i) preserves buildings, communities, and sites of historical and 25
cultural importance to the African American experience in the State; and 26
(ii) is for: 27
1. the acquisition of land or buildings; or 28
2. the construction or improvement of land or buildings. 29
SENATE BILL 284 31
(8) “Program” means the African American Heritage Preservation 1
Program. 2
(9) “Secretary” means the Secretary of Planning. 3
(b) (1) There is an African American Heritage Preservation Program in the 4
Trust. 5
(2) The purpose of the Program is to identify and preserve buildings, 6
communities, and sites of historical and cultural importance to the African American 7
experience in the State. 8
(c) (1) There is an African American Heritage Preservation Grant Fund in the 9
Trust. 10
(3) The AAHP Grant Fund may be used only for African American Heritage 11
Grants. 12
(5) The AAHP Grant Fund consists of: 13
(i) money appropriated in the State budget to the Program; 14
(ii) investment earnings of the AAHP Grant Fund; 15
(iii) grants and donations to the AAHP Grant Fund; 16
(iv) any other money from any other source accepted for the benefit 17
of the AAHP Grant Fund; and 18
(v) money received from the sale of State general obligation bonds. 19
(6) For each fiscal year, the Governor shall include in the annual operating 20
or capital budget an appropriation of $5,000,000 to the AAHP Grant Fund TO BE USED 21
FOR AFRICAN AMERICAN HERITAGE PRESERVATION PROJECTS. 22
(h) (1) The Secretary shall: 23
(i) review each grant application submitted under subsection (d) or 24
(g) of this section and the recommendations of the Trust and the Commission; 25
(ii) consider: 26
1. the applications and recommendations under the criteria 27
set forth in subsection (f)(2) of this section; and 28
2. if the grant was submitted under subsection (g) of this 29
section, the nature of the emergency; and 30
32 SENATE BILL 284
(iii) subject to paragraphs (2) and (3) of this subsection, make the 1
final decision to award the grant or deny the application. 2
(2) Subject to paragraph (3)(ii) of this subsection, the Secretary may award 3
a grant under the Program funded by money received under subsection [(c)(5)(i), (ii), (iv), 4
or (v) ] (C)(5)(II), (IV), OR (V) of this section only for an African American Heritage 5
Preservation Project. 6
(3) (i) The Secretary may award a grant funded by money received 7
under subsection (c)(5)(iii) of this section as an African American Heritage Preservation 8
Noncapital Grant. 9
(ii) If, after the award of all eligible grants under subparagraph (i) 10
of this paragraph have been made, there is additional money in the AAHP Grant Fund 11
received under subsection (c)(5)(iii) of this section, the Secretary may award a grant funded 12
by mone y received under subsection (c)(5)(iii) of this section for an African American 13
Heritage Preservation Project. 14
(4) THE SECRETARY MAY AWARD A GRANT UNDER THE PROGRAM AS 15
AN AFRICAN AMERICAN HERITAGE PRESERVATION NONCAPITAL GRANT FROM 16
THE MONEY RECEIVED U NDER SUBSECTION (C)(5)(I) OF THIS SECTION , IF THE 17
AMOUNT RECEIVED IS MORE THAN THE $5,000,000 REQUIRED UNDER SUBSECTION 18
(C)(6) OF THIS SECTION. 19
7–115. 20
(a) On submission of the budget bill to the presiding officers of the General 21
Assembly, the Governor shall provide the supporting material specified in this section. 22
(b) The Governor shall [provide] PUBLISH ONLINE budget books that include the 23
information required in this section. 24
7–311. 25
(a) (1) In this section the following words have the meanings indicated. 26
(2) “Account” means the Revenue Stabilization Account. 27
(3) “Estimated General Fund revenues” means the estimated General 28
Fund revenues for a fiscal year stated in the report of the Board of Revenue Estimates 29
submitted to the Governor under § 6–106 of this article in December preceding the fiscal 30
year. 31
SENATE BILL 284 33
(4) “Unappropriated General Fund surplus” does not include the amount 1
of nonwithholding income tax revenues that exceed the capped estimate determined under 2
§ 6–104(e) of this article. 3
(b) (1) The Revenue Stabilization Account is established to retain State 4
revenues for future needs and reduce the need for future tax increases by moderating 5
revenue growth. 6
(2) It is the goal of the State that 10% of estimated General Fund revenues 7
in each fiscal year be retained in the Account. 8
(e) (1) Except as provided in subsection (f) of this section, for each fiscal year, 9
except fiscal [year 2026] YEARS 2026 AND 2027: 10
(i) if the Account balance is below 3% of the estimated General Fund 11
revenues for that fiscal year, the Governor shall include in the budget bill an appropriation 12
to the Account equal to at least $100,000,000; and 13
(ii) if the Account balance is at least 3% but less than 7.5% of the 14
estimated General Fund revenues for that fi scal year, the Governor shall include in the 15
budget bill an appropriation to the Account equal to at least the lesser of $50,000,000 or 16
whatever amount is required for the Account balance to exceed 7.5% of the estimated 17
General Fund revenues for that fiscal year. 18
(2) At the end of fiscal year 2020 and each fiscal year thereafter, if the 19
amount of nonwithholding income tax revenues exceeds the capped estimate determined 20
under § 6–104(e) of this article, the State Comptroller shall distribute funds as provided in 21
§ 7–329(c) and (d) of this subtitle. 22
7–317. 23
(a) There is a Cigarette Restitution Fund. 24
(g) (1) Amounts may only be expended from the Fund through appropriations 25
in the State budget bill as provided in this subsection. 26
(6) (I) THIS PARAGRAPH DOES NOT APPLY TO FISCAL YEAR 2027. 27
(II) For each of fiscal years 2025 through 2029, the Governor shall 28
include in the annual budget bill an appropriation of $8,000,000 to the Maryland 29
Community Health Resources Commission Fund. 30
(h) (1) The Fund sha ll include a separate account consisting of payments 31
received by the State as a result of litigation by participating manufacturers related to the 32
State’s diligent enforcement of Title 16, Subtitle 4 of the Business Regulation Article. 33
34 SENATE BILL 284
(2) (i) Except as provided in [subparagraph (ii)] SUBPARAGRAPHS (II) 1
AND (III) of this paragraph, distributions from the separate account may be used only to 2
supplant the General Fund appropriation to the historically black colleges and universities 3
required under [§ 15–126] § 15–128 of the Education Article. 4
(ii) For fiscal year 2026 only, distributions from the separate account 5
may be used to support Medicaid expenses. 6
(III) FOR FISCAL YEAR 2027 ONLY, ANY AMOUNT THAT IS 7
DISTRIBUTED FROM THE SEPARATE ACCOUNT THA T IS IN EXCESS OF TH E FIRST 8
$35,000,000 DISTRIBUTED MAY REMA IN IN THE ACCOUNT OR BE USED FOR 9
PURPOSES OTHER THAN SUPPLANTING THE GENERAL FUND APPROPRIATION TO 10
THE HISTOR ICALLY BLACK COLLEGE S AND UNIVERSITIES R EQUIRED UNDER § 11
15–128 OF THE EDUCATION ARTICLE. 12
(i) (1) The Fund shall include a separate account consisting of payments 13
received by the State from any judgment, settlement, penalty, offer of compromise, or any 14
other enforcement action related to the sale and marketing of electronic smoking devices. 15
(2) Distributions from the separate account established under paragraph 16
(1) of this subsection may be used, consistent with any other provision of State law, to 17
supplement the General Fund appropriations designated for programs under subsection (f) 18
of this section with the purpose of reducing the use of tobacco products by individuals under 19
the age of 21 years. 20
7–330. 21
(b) There is a Fiscal Responsibility Fund. 22
(g) (1) Except as provided in [paragraph] PARAGRAPHS (2) AND (3) of this 23
subsection, the Fund may be used only to provide pay–as–you–go capital funds for: 24
(i) public school construction and public school capital improvement 25
projects, in accordance with Title 5, Subtitle 3 of the Education Article; 26
(ii) capital projects at public community colleges; and 27
(iii) capital projects at four –year public institutions of higher 28
education. 29
(2) For fiscal year 2023 only, money in the Fund shall be used to provide, 30
beginning July 1, 2022, a cost–of–living adjustment of up to 4.5% for permanent employees 31
in the Executive Branch of State government who are in a bargaining unit that is 32
represented by the American Federation of State, County and Municipal Employ ees, 33
AFL–CIO, excluding a bargaining unit represented by the American Federation of State, 34
County and Municipal Employees, AFL–CIO Local 1859. 35
SENATE BILL 284 35
(3) FOR FISCAL YEAR 2026 ONLY, MONEY IN THE FUND MAY BE USED 1
FOR MAJOR INFORMATION TECHNOLOGY DEVELOPMENT PROJECTS, AS DEFINED IN 2
§ 3.5–301(K) OF THIS ARTICLE , THAT ARE FUNDED BY T HE INFORMATION 3
TECHNOLOGY INVESTMENT FUND ESTABLISHED UNDE R § 3.5–309 OF THIS 4
ARTICLE. 5
(k) [At] EXCEPT FOR THE FISCAL YEAR 2026 APPROPRIATION DESCRIBED 6
IN SUBSECTION (G)(3) OF THIS SECTION, AT the end of a fiscal year, the unspent balance 7
of each appropriation that was made for that fiscal year from the Fund reverts to the Fund. 8
Article – State Government 9
9–120. 10
(b) (1) By the end of the month following collection, the Comptroller shall 11
deposit, cause to be deposited, or pay: 12
(iv) after June 30, 2021, into the Racing and Community 13
Development Financing Fund established under § 10–657.2 of the Economic Development 14
Article from the money that remains in the State Lottery Fund, after the distribution under 15
subsection (a) of this section[,]: 16
1. FOR FISCAL YEAR 2026, AN AMOUNT EQUAL TO 17
$13,400,000; AND 18
2. FOR EACH FISCAL YEAR THEREAFTER, an amount 19
equal to at least $17,000,000 [in each fiscal year] until the bonds issued for a racing facility 20
have matured; 21
(xii) 1. after June 30, 2024, EXCEPT AS PROVIDED IN ITEM 2 OF 22
THIS ITEM, into the Prince George’s County Blue Line Corridor Facility Fund established 23
under § 10–657.6 of the Economic Development Article from the money that remains in the 24
State Lottery Fund from the proceeds of all lotteries after the distributions under subsection 25
(a) of this section and items (i) through (xi) of this paragraph, $27,000,000; AND 26
2. FOR FISCAL YEAR 2027: 27
A. $18,000,000 FOR A GRANT TO THE MARYLAND 28
ECONOMIC DEVELOPMENT CORPORATION FOR THE P URPOSE OF A MIXED –USE 29
DEVELOPMENT, INCLUDING A SOCCER STADIUM AT THE UNIVERSITY OF MARYLAND, 30
COLLEGE PARK; 31
36 SENATE BILL 284
B. $4,000,000 FOR A GRANT TO THE VELOCITY 1
COMPANIES FOR INFRASTRUCTURE IMPROVEMENTS AND ECONOMIC DEVELOPMENT 2
ALONG THE BLUE LINE CORRIDOR; 3
C. $2,000,000 FOR A GRANT TO THE ATLANTIC PACIFIC 4
COMPANIES TO SUPPORT THE ADDISON PARK DEVELOPMENT PROJECT; 5
D. $1,500,000 FOR A GRANT TO THE PRINCE GEORGE’S 6
COUNTY REDEVELOPMENT AUTHORITY TO SUPPORT ARTSPACE IN MOUNT 7
RAINIER; 8
E. $750,000 FOR A GRANT TO THE TOWN OF COLMAR 9
MANOR FOR THE COLMAR MANOR COMMUNITY CENTER AND TOWN HALL; AND 10
F. $750,000 FOR A GRANT TO THE TOWN OF COTTAGE 11
CITY FOR CONVERTING A FIREHOUSE INTO A COMMUNITY OUTREACH CENTER; 12
9–20B–02. 13
There is a Maryland Strategic Energy Investment Program in the Maryland Energy 14
Administration. 15
9–20B–03. 16
The purpose of the Program is to decrease energy demand and increase energy 17
supply to promote affordable, reliable, and clean energy AND TO STRENGTHEN TH E 18
STATE’S CLIMATE MITIGATION AND CLIMATE RESILIEN CY to fuel Maryland’s future 19
prosperity. 20
9–20B–05. 21
(a) There is a Maryland Strategic Energy Investment Fund. 22
(f) The Administration shall use the Fund: 23
(13) notwithstanding subsection (g) of this section, to pay costs associated 24
with: 25
(I) the Air and Radiation Administration within the Department of 26
the Environment; AND 27
(II) THE POWER PLANT RESEARCH PROGRAM WITHIN THE 28
DEPARTMENT OF NATURAL RESOURCES, INCLUDING TO SUPPORT 29
ENVIRONMENTAL REVIEW OF APPLICATIONS FOR CERTIFICATES OF PUBL IC 30
SENATE BILL 284 37
CONVENIENCE AND NECESSITY ASSOCIATED WITH POWER PLANT CONSTRUCTION AS 1
REQUIRED UNDER § 3–306 OF THE NATURAL RESOURCES ARTICLE; AND 2
(III) THE ENVIRONMENTAL REVIEW PROGRAM WITHIN THE 3
DEPARTMENT OF NATURAL RESOURCES, INCLUDING TO SUPPORT THE REVIEW OF 4
NATURAL RESOURCE IMPACTS OF PROPOSED DEVELOPMENT PROJECTS ON STATE 5
AND PRIVATE LANDS; and 6
(g) Proceeds received by the Fund from the sale of allowances under § 2 –1002(g) 7
of the Environment Article shall be allocated as follows: 8
(3) at least 20% shall be credited to a renewable and clean energy programs 9
account for: 10
(i) renewable and clean energy programs and initiatives; 11
(ii) energy–related public education and outreach; [and] 12
(iii) climate change and resiliency programs; [and] 13
(IV) PROGRAMS AND APPLICA BLE INITIATIVES RELA TED TO 14
STATE CLIMATE CHANGE MITIGATION AND CLIMATE CHANGE RESILIENCY EFFORTS; 15
AND 16
(V) NOTWITHSTANDING § 9–20B–03 OF THIS SUBTITLE , 17
PROGRAMS AND APPLICA BLE INITIATIVES RELA TED TO RESILIENCY EF FORTS 18
DEFINED AND IMPLEMEN TED BY THE MARYLAND DEPARTMENT OF EMERGENCY 19
MANAGEMENT, INCLUDING THE ANNUAL REPORT BY THE OFFICE OF RESILIENCE 20
REQUIRED UNDER § 14–1203 OF THE PUBLIC SAFETY ARTICLE; AND 21
(i) (1) Except as provided in paragraphs [(2), (3), and (4)] (2) THROUGH (6) 22
of this subsection, compliance fees paid under § 7–705(b) of the Public Utilities Article may 23
be used only to make loans and grants to support the creation of new Tier 1 renewable 24
energy sources in the State that are owned by or directly benefit: 25
(i) low– to moderate–income communities located in a census tract 26
with an average median income at or below 80% of the average median income for the State; 27
or 28
(ii) overburdened or underserved communities, as defined in § 1–701 29
of the Environment Article. 30
(5) FOR FISCAL YEAR 2027 ONLY, COMPLIANCE FEES PAID UNDER §§ 31
7–705(B) AND 7–705(B)(2)(I)2 OF THE PUBLIC UTILITIES ARTICLE SHALL BE MADE 32
AVAILABLE FOR THE FOLLOWING: 33
38 SENATE BILL 284
(I) $70,000,000 TO THE MARYLAND ENERGY ADMINISTRATION 1
TO PROVIDE GAP FINAN CING FOR AT –RISK, LARGE–SCALE CLEAN ENERGY 2
PROJECTS; 3
(II) $10,000,000 TO THE PUBLIC SERVICE COMMISSION TO 4
CONDUCT RESEARCH INT O GRID –ENHANCING TECHNOLOGI ES AND ADVANCED 5
TRANSMISSION TECHNOLOGIES; 6
(III) $5,000,000 TO THE PUBLIC SERVICE COMMISSION FOR 7
GRANTS TO UTILI TY COMPANIES TO CONS TRUCT OR MODIFY TRAN SMISSION 8
FACILITIES THAT INCORPORATE GRID–ENHANCING AND ADVANCED TRANSMISSION 9
TECHNOLOGIES; 10
(IV) $10,000,000 TO THE DEPARTMENT OF TRANSPORTATION 11
TO ESTABLISH A PROCESS, ESTABLISH A MODEL LEASING FRAMEWORK, AND CREATE 12
SAFETY GUIDELINES FOR RIGHT–OF–WAY FOR TRANSMISSION INFRASTRUCTURE; 13
(V) $25,000,000 TO THE DEDICATED PURPOSE ACCOUNT FOR 14
RESOURCE PLANNING RELATED TO IMPLEMENTATION OF CHAPTER 19 OF THE ACTS 15
OF THE GENERAL ASSEMBLY OF THE 2025 SPECIAL SESSION; AND 16
(VI) $42,000,000 TO THE DEDICATED PURPOSE ACCOUNT TO BE 17
MADE AVAILABLE FOR H IGHER EDUCATION RESEARCH GRANTS IN ANY RESEARCH 18
FIELD AND NOT LIMITED TO ENERGY–RELATED RESEARCH. 19
(6) FOR FISCAL YEARS 2027 THROUGH 2031, COMPLIANCE FEES PAID 20
UNDER § 7–705 OF THE PUBLIC UTILITIES ARTICLE AND DEPOSITED INTO THE 21
FUND MAY BE USED FOR GRANTS OR LOANS TO S UPPORT THE CREATION OF NEW 22
TIER 1 RENEWABLE ENERGY SOURCES IN THE STATE. 23
21–201. 24
(a) In this subtitle the following words have the meanings indicated. 25
(c) “Corps participant” means an individual who participates in the Program. 26
(d) “Department” means the Department of Service and Civic Innovation. 27
(h) “Program” means the Maryland Corps Program. 28
21–205. 29
(a) (1) There is a Young Adult Service Year Option Pathway in the Program. 30
SENATE BILL 284 39
(c) (1) The Department shall set targets for participation in the YA Pathway 1
under this section, including: 2
(i) 200 corps participants in the first year of implementation; 3
(ii) 750 corps participants in the third year of implementation; 4
(iii) [1,500] 1,100 corps participants in the fourth year of 5
implementation; [and] 6
(iv) [2,000] 1,550 corps participants in the fifth year of 7
implementation; AND 8
(V) 2,000 CORPS PARTICIPANTS I N THE SIXTH YEAR OF 9
IMPLEMENTATION. 10
Article – State Personnel and Pensions 11
21–304. 12
(a) (1) In this section the following words have the meanings indicated. 13
(2) With respect to local employees, “aggregate annual earnable 14
compensation” means the total annual earnable compensation payable by a local employer 15
to all of its local employees, calculated as of June 30 of the second prior fiscal year before 16
the fiscal year for which the calculation is made under this section, adjusted by any 17
actuarial assumed salary increases th at were used in the actuarial valuation prepared 18
under § 21–125(b) of this title for the immediate prior fiscal year. 19
(3) “Local employee” means a member of the Teachers’ Retirement System 20
or the Teachers’ Pension System who is an employee of a day school in the State under the 21
authority and supervision of a county board of education or the Baltimore City Board of 22
School Commissioners, employed as: 23
(i) a clerk; 24
(ii) a helping teacher; 25
(iii) a principal; 26
(iv) a superintendent; 27
(v) a supervisor; or 28
(vi) a teacher. 29
40 SENATE BILL 284
(4) “Local employer” means a county board of education or the Baltimore 1
City Board of School Commissioners. 2
(5) “State member” does not include a member on whose behalf a 3
participating governmental unit is required to make an employer contribution under § 4
21–305 or § 21–306 of this subtitle. 5
(6) “Total employer contribution for local employees” means that portion of 6
the employer contribution calculated under subsection (b) of this section that is attributable 7
to all local employees. 8
(b) (1) Subject to paragraphs (4) and (5) of this subsection, each fiscal year, on 9
behalf of the State members of each State syste m, the State shall pay to the appropriate 10
accumulation fund an amount equal to or greater than the sum of the amount, if any, 11
required to be included in the budget bill under § 3 –501(c)(2)(ii) of this article and the 12
product of multiplying: 13
(i) the agg regate annual earnable compensation of the State 14
members of that State system; and 15
(ii) the sum of the normal contribution rate and the accrued liability 16
contribution rate for State members of that State system, as determined under this section. 17
(4) (i) Subject to § 21–309.1 of this subtitle, beginning on July 1, 2012, 18
and each fiscal year thereafter, each local employer shall pay to the appropriate 19
accumulation fund an amount equal to the local share of the total employer contribution 20
for local employees as provided in this paragraph. 21
(iii) Beginning in fiscal year 2017, each local employer shall pay to 22
the Board of Trustees its local share equal to the normal contribution rate for the Teachers’ 23
Retirement System and the Teachers’ Pension System multiplied by the aggregate annual 24
earnable compensation of the local employees of that local employer. 25
(5) Except as provided in paragraph (6) of this subsection, the difference 26
between the total employer contribution for local employees and the local share of the total 27
employer contribution for all local employees shall be the obligation of the State. 28
(6) (i) Subject to § 21 –309.2 of this subtitle and as provided under 29
subparagraph (ii) of this paragraph, beginning in fiscal year [2026] 2027, each c ounty 30
government shall pay to the Board of Trustees the following amounts: 31
County 32
Government 33
Allegany ...................................... [754,195] 1,139,988 34
SENATE BILL 284 41
Anne Arundel.............................. [9,738,875] 13,344,016 1
Baltimore City ............................ [8,802,114] 12,041,167 2
Baltimore .................................... [10,352,112] 15,122,563 3
Calvert ........................................ [1,647,480] 2,284,705 4
Caroline ....................................... [561,645] 785,750 5
Carroll ......................................... [2,624,055] 3,661,920 6
Cecil............................................. [1,327,122] 1,963,691 7
Charles ........................................ [2,786,366] 3,900,924 8
Dorchester ................................... [590,506] 794,625 9
Frederick ..................................... [5,925,608] 7,899,429 10
Garrett ........................................ [269,208] 428,865 11
Harford ........................................ [3,685,077] 5,297,751 12
Howard ........................................ [6,830,167] 9,696,329 13
Kent ............................................. [165,489] 255,179 14
Montgomery ................................ [20,861,475] 28,754,528 15
Prince George’s ........................... [13,000,062] 18,675,337 16
Queen Anne’s .............................. [691,279] 973,835 17
St. Mary’s .................................... [1,562,014] 2,205,319 18
Somerset ..................................... [314,066] 442,575 19
Talbot .......................................... [452,957] 651,179 20
Washington ................................. [2,397,889] 3,279,909 21
Wicomico ..................................... [1,704,888] 2,379,362 22
Worcester .................................... [699,872] 1,049,543 23
(ii) 1. For fiscal year 2026, each county government shall pay to 24
the Board of Trustees on or before January 1, 2026, the amount required under 25
subparagraph (i) of this paragraph. 26
2. Beginning in fiscal year 2027, each county government 27
shall pay to the Board of Trustees on or before each September 1 the amount required under 28
subparagraph (i) of this paragraph. 29
(iii) Each fiscal year, the amounts paid under subparagraph (i) of this 30
paragraph shall reduce the obligations of the State with respect to the Teachers’ Pension 31
System and the Teachers’ Retirement System by the same amounts. 32
Article – Tax – General 33
2–606. 34
(b) (1) In June of each year, from current collections, the Comptroller shall 35
reserve an amount of unallocated revenue that the Comptroller estimates will be claimed 36
on returns and refunded to taxpayers within 3 years of the date the income tax return was 37
due to be filed, and distribute to each county, municipal corporation, and special taxing 38
district a pro rata share of the balance of the unallocated individual income tax revenue. 39
42 SENATE BILL 284
(2) The Comptroller shall adjust the amount distributed under paragraph 1
(1) of this subsection to a county, municipal corporation, or special taxing district to allow 2
for the proportionate part of tax claim payments for a prior calendar year made after a 3
distribution is made to the county, municipal corporation, or special taxing district for that 4
year. 5
(i) (1) On or before [July 31, 2025] JUNE 1, 2025 2026, the Comptroller shall 6
distribute $37,300,000 from the Local Reserve Account established to comply with this 7
section to the [Division of Paid Leave within the Maryland Dep artment of Labor ] 8
GENERAL FUND OF THE STATE. 9
(2) The Maryland Department of Labor shall reimburse the Local Reserve 10
Account $37,300,000 within 2 years after contributions into the Department’s Family and 11
Medical Leave Insurance Fund begin. 12
Article – Tax – Property 13
13–209. 14
(a) (1) Before any other distribution under this section, in any fiscal year that 15
bonds secured by a pledge of the State transfer tax are outstanding, the revenue from the 16
transfer tax shall be used to pay, as and when due, the principal of and interest on the 17
bonds. 18
(2) The Department shall deduct the cost of administering the transfer tax 19
from the taxes collected under this title and credit those revenues to the fund established 20
under § 1–203.3 of the Corporations and Associations Article. 21
(3) Except as provided in paragraph (4) of this subsection, after deducting 22
the revenues required under paragraphs (1) and (2) of this subsection, the revenue from 23
transfer tax is payable to the Comptroller for deposit in a special fund. 24
(4) In any fiscal year in which transfer tax revenue is used to pay debt 25
service on outstanding bonds under paragraph (1) of this subsection, the distribution of 26
revenues in the special fund under this section and as specified in § 5–903(a)(2)(i)1A of the 27
Natural Resources Article, for State land acquisition, or to the Agricultural Land 28
Preservation Fund to the extent any debt service is attributable to that Fund, shall be 29
reduced by an amount equal to the debt service for the fiscal year. 30
(b) For the fiscal year beginning July 1, 2002 and for subsequent fiscal years, up 31
to 3% of the revenues in the special fund may be appropriated in the State budget for 32
salaries and related expenses in the Departments of General Services and Natural 33
Resources and in the Department of Planning necessary to administer Title 5, Subtitle 9 of 34
the Natural Resources Article (Program Open Space). 35
SENATE BILL 284 43
(c) (1) Subject to subsection (e) of this section, of the balance of the revenue in 1
the special fund, not required under subsection (b) of this section: 2
(i) for the fiscal year beginning July 1, 2002, $47,268,585 shall be 3
allocated to the General Fund of the State and the remainder shall be allocated as provided 4
in subsection (d) of this section; 5
(ii) for the fiscal year beginning July 1, 2003, $102,833,869 shall be 6
allocated to the General Fund of the State and the remainder shall be allocated as provided 7
in the State budget; 8
(iii) for the fiscal year beginning July 1, 2004, $147,374,444 shall be 9
allocated to the General Fund of the State, and the remainder shall be allocated as provided 10
in the State budget; and 11
(iv) for the fiscal year beginning July 1, 2005, $68,223,132 shall be 12
allocated to the General Fund of the State and the remainder shall be allocated as provided 13
in subsection (d) of this section. 14
(2) Subject to subsection (e) of this section, for the fiscal years beginning 15
July 1, 2006 and each subsequent fiscal year, the balance of the revenue in the special fund, 16
not required under subsection (b) of this section shall be allocated as provided in subsection 17
(d) of this section. 18
(3) (i) Subject to subsection (e) of this section, for fiscal years 2026 19
through 2029, of the balance of the revenue in the special fund not required under 20
subsection (b) of this section, $25,000,000 shall be allocated to the General Fund of the 21
State and the remainder shall be allocated as provided in PARAGRAPH (4) OF THIS 22
SUBSECTION AND subsection (d) of this section. 23
(ii) For each of fiscal years 2026 through 2029, the allo cation 24
required under subparagraph (i) of this paragraph shall reduce the amount allocated for 25
Program Open Space land acquisition purposes identified in subsection (d)(1)(ii) of this 26
section and § 5 –903(a)(2)(i)1A of the Natural Resources Article, the Agr icultural Land 27
Preservation Fund identified in subsection (d)(2) of this section, and the Rural Legacy 28
Program identified in subsection (d)(3) of this section and § 5 –903(a)(2)(iii) of the Natural 29
Resources Article by an amount that is proportional to the amount of revenue each program 30
is estimated to receive for the fiscal year. 31
(4) (I) IN ADDITION TO THE GENERAL FUND ALLOCATION UNDER 32
PARAGRAPH (3) OF THIS SUBSECTION A ND SUBJECT TO SUBSEC TION (E) OF THIS 33
SECTION, FOR FISCAL YEAR 2027 ONLY, OF THE BALANCE OF THE REVENUE IN THE 34
SPECIAL FUND NOT REQ UIRED UNDER SUBSECTI ON (B) OF THIS SECTION , 35
$71,743,156 SHALL BE ALLOCATED TO THE GENERAL FUND OF THE STATE AND THE 36
REMAINDER SHALL BE A LLOCATED AS PROVIDED IN SUBSECTION (D) OF THIS 37
SECTION. 38
44 SENATE BILL 284
(II) THE A MOUNT ALLOCATED UNDE R SUBPARAGRAPH (I) OF 1
THIS PARAGRAPH SHALL REDUCE THE AMOUNT AL LOCATED FOR THE FOLL OWING 2
PROGRAMS AND FUNDS: 3
1. PROGRAM OPEN SPACE (LOCAL) FUNDS IDENTIFIED 4
IN §§ 5–903(A)(2)(II)2E AND (B)(1) AND 5–905(B)(7) OF THE NATURAL RESOURCES 5
ARTICLE BY $49,586,156; 6
2. RURAL LEGACY PROGRAM FUNDS IDENTIF IED IN 7
SUBSECTION (D)(3) OF THIS SECTION AND § 9–503(A)(2)(III) OF THE NATURAL 8
RESOURCES ARTICLE BY $13,400,000; AND 9
3. FUNDS FOR THE NATURAL RESOURCES 10
DEVELOPMENT FUND IDENTIFIED FOR THE PURPOSES SPECIFIED IN § 5–903(G)(1) 11
OF THE NATURAL RESOURCES ARTICLE. 12
(III) THE ALLOCATIONS REDUC ED UNDER SUBPARAGRAP H (II) 13
OF THIS PARAGRAPH SHALL BE REPLACED WITH GENERAL OBLIGATION BONDS. 14
(d) Subject to subsections (d–1) and (e) of this section, for the fiscal year beginning 15
July 1, 2002 and for each subsequent fiscal year, the balance of the revenue in the special 16
fund, not required under subsection (b) of this section and not allocated to the General Fund 17
under subsection (c)(1) [and], (3), AND (4) of this section shall be allocated in the State 18
budget as follows: 19
(1) (i) 75.15% for the purposes specified in Title 5, Subtitle 9 of the 20
Natural Resources Article (Program Open Space); and 21
(ii) an additional 1% for Program Open Space, for land acquisition 22
purposes as specified in § 5–903(a)(2) of the Natural Resources Article; 23
(2) 17.05% for the Agricultural Land Preservation Fund established under 24
§ 2–505 of the Agriculture Article; 25
(3) 5% for the Rural Legacy Program established und er § 5–9A–01 of the 26
Natural Resources Article; and 27
(4) 1.8% for the Heritage Conservation Fund established under § 5 –1501 28
of the Natural Resources Article. 29
(e) The sums allocated in subsection (d) of this section may not revert to the 30
General Fund of the State. 31
SENATE BILL 284 45
(g) (3) (i) 1. For fiscal year 2023, the Governor shall include in the 1
annual budget bill a General Fund appropriation in the amount of $2,500,000 to the 2
Maryland Agricultural and Resource –Based Industry Development Corporation for the 3
Next Generation Farmland Acquisition Program authorized under § 10–523(a)(3)(ii) of the 4
Economic Development Article. 5
2. For fiscal year 2025 only, the Governor shall include in the 6
annual budget bill a General Fund appropriation in the amount of $2,735,000 to the 7
Maryland Agricultural and Resource –Based Industry Development Corporation 8
established under Title 10, Subtitle 5 of the Economic Development Article to be used as 9
follows: 10
A. $2,300,000 to support the Corporation’s rural business 11
loan programs and small matching grant programs; and 12
B. $435,000 for grants and near–equity investments to: 13
I. support the creation or expansion of agricultural product 14
aggregation and storage sites; and 15
II. facilitate participation in the Certified Local Farm and 16
Fish Program. 17
3. A. For each of fiscal years 2024, 2025, AND 2026, [and 18
2027,] the Governor shall include in the annual budget bill a General Fund appropriation 19
of $500,000 to the Urban Agriculture Water and Power Infrastructure Grant Fund 20
established under § 2–2103 of the Agriculture Article. 21
B. FOR FISCAL YEAR 2027, THE GOVERNOR SHALL 22
INCLUDE IN THE ANNUA L BUDGET BILL A GENERAL FUND APPROPRIATION OF 23
$400,000 TO THE URBAN AGRICULTURE WATER AND POWER INFRASTRUCTURE 24
GRANT FUND ESTABLISHED UNDER § 2–2103 OF THE AGRICULTURE ARTICLE. 25
(ii) The appropriations required under subparagraph (i) of this 26
paragraph: 27
1. are not subject to the provisions of subsections (a), (b), (c), 28
and (f) of this section; 29
2. shall be allocated as provid ed in subsection (d) of this 30
section and § 5–903 of the Natural Resources Article; and 31
3. shall be reduced by the amount of any appropriation from 32
the General Fund to the special fund that: 33
46 SENATE BILL 284
A. exceeds the required appropriation under this paragraph; 1
and 2
B. is identified as an appropriation for reimbursement under 3
this paragraph. 4
(h) (1) Except as provided in paragraph (3) of this subsection, if an 5
appropriation or a transfer from the special fund to the General Fund occurs after the fiscal 6
year ending June 30, 2018, the Governor shall include in the annual budget bills for each 7
of the 3 successive fiscal years following the fiscal year in which a transfer is made a 8
General Fund appropriation to the special fund equal to one –third of the cumu lative 9
amount of the appropriation or transfer from the special fund to the General Fund for the 10
applicable fiscal year. 11
(2) The appropriation required under paragraph (1) of this subsection: 12
(i) represents reimbursement for the cumulative amount of any 13
appropriation or transfer from the special fund to the General Fund for the applicable fiscal 14
year; 15
(ii) is not subject to the provisions of subsections (a), (b), (c), and (f) 16
of this section; 17
(iii) shall be allocated as provided in subsection (d) of this section and 18
§ 5–903 of the Natural Resources Article; 19
(iv) shall be made until the cumulative total appropriated under 20
paragraph (1) of this subsection is equal to the cumulative amount of any appropriation or 21
transfer from the special fund to the General Fund for the applicable fiscal year; and 22
(v) shall be reduced by the amount of any appropriation from the 23
General Fund to the special fund that: 24
1. exceeds the required appropriation under this subsection; 25
and 26
2. is identified as an appropriation for reimbursement under 27
this subsection. 28
(3) The appropriation required under paragraph (1) of this subsection does 29
not apply to transfers from the special fund to the General Fund that occur in fiscal years 30
2026 through 2029. 31
Article – Transportation 32
13–955. 33
SENATE BILL 284 47
(a) In this section, “Fund” means the Maryland Emergency Medical System 1
Operations Fund. 2
(e) Except as provided in subsection (f) of this section, the money in the Fund 3
shall be used solely for: 4
(1) Medically oriented functions of the Department of State Police, Special 5
Operations Bureau, Aviation Division; 6
(2) The Maryland Institute for Emergency Medical Services Systems; 7
(3) The R Adams Cowley Shock Trauma Center at the University of 8
Maryland Medical System; 9
(4) The Maryland Fire and Rescue Institute; 10
(5) The provision of grants under the Senator William H. Amoss Fire, 11
Rescue, and Ambulance Fund in accordance with the provisions of Title 8, Subtitle 1 of the 12
Public Safety Article; and 13
(6) The Voluntee r Company Assistance Fund in accordance with the 14
provisions of Title 8, Subtitle 2 of the Public Safety Article. 15
(f) For fiscal years 2025 [and 2026] THROUGH 2029, the money in the Fund may 16
be used to support general operations of the Department of State Police, Special Operations 17
Bureau, Aviation Command. 18
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 19
as follows: 20
Article – Education 21
7–414.1. 22
(a) (1) In this section the following words have the meanings indicated. 23
(2) “Fund” means the Driver Education in Public High Schools Fund. 24
(3) “Program” means the Driver Education in Public High Schools Grant 25
Program. 26
(b) There is a Driver Education in Public High Schools Grant Program in the 27
Department. 28
(f) (1) There is a Driver Education in Public High Schools Fund. 29
(4) The Fund consists of[: 30
48 SENATE BILL 284
(i) Money received by the Fund from fines for vehicle security lapses 1
under § 17–106 of the Transportation Article; and 2
(ii) Any other ] money from any [other] source accepted for the 3
benefit of the Fund. 4
(5) The Fund may be used only for: 5
(i) Providing grants under the Program; and 6
(ii) Administrative costs of the Program. 7
Article – Natural Resources 8
5–903. 9
(a) (1) (i) Of the funds distributed to Program Open Space under § 13–209 10
of the Tax – Property Article, up to $3,000,000 may be transferred by an appropriation in 11
the State budget, or by an amendment to the State budget under Title 7, Subtitle 2 of the 12
State Finance and Procurement Article, to the Maryland Heritage Areas Authority 13
Financing Fund established under Title 13, Subtitle 11 of the Financial Institutions Article 14
to be used for the purposes provided in that subtitle. 15
(ii) Of the amount transferred under subparagraph (i) of this 16
paragraph, up to $300,000 may be distributed to the Maryland Historical Trust within the 17
Department of Planning to be awarded as noncapital historic preservation grants. 18
(2) (i) 1. Of the remaining funds not appropriated under paragraph 19
(1)(i) of this subsection: 20
A. One half of the funds shall be used for recreation and open 21
space purposes by the Department and the Historic St. Mary’s City Commission; [and] 22
B. 20% of the funds or $21,000,000, whichever is greater, 23
shall be appropriated to the Fore st and Park Service in the Department to operate State 24
forests and parks; AND 25
C. 0.2% OF THE FUNDS OR $200,000, WHICHEVER IS 26
GREATER, SHALL BE APPROPRIATE D TO THE DEPARTMENT OF PLANNING TO 27
OPERATE AND MAINTAIN THE JEFFERSON PATTERSON PARK AND MUSEUM. 28
2. Except as otherwise provided in this section, any funds the 29
General Assembly appropriates to the State under this subsection shall be used only for 30
land acquisition projects. 31
SENATE BILL 284 49
(i) (1) Notwithstanding any other provision of this section or the allo cation 1
formulas in § 13 –209 of the Tax – Property Article and subject to paragraph (2) of this 2
subsection, the Governor may transfer to the Department funds from the Program Open 3
Space State land acquisition balance if: 4
(i) The balance is more than $80,000,000 at the end of a given fiscal 5
year; and 6
(ii) The Department’s existing special fund sources are insufficient 7
to cover existing salaries for permanent, classified positions responsible for operating and 8
maintaining lands administered and managed by the Department. 9
(2) After a fund transfer under paragraph (1) of this subsection, the 10
remaining balance must be at least $80,000,000. 11
(3) (i) The Department may use any amount of the transferred funds 12
as a one–time fiscal year expenditure for: 13
1. Operation and maintenance of lands administered and 14
managed by the Department; 15
2. Administrative expenses related to land acquired by the 16
Department under Program Open Space; or 17
3. Law enforcement activities, services, salaries, and related 18
expenses of the Natural Resources Police. 19
(ii) The Department may transfer any amount of the transferred 20
funds to the Forest or Park Reserve Fund established under § 5–212 of this title. 21
(4) Any fund transfer made under this subsection supplements rather than 22
supplants any other funding for operation, maintenance, and administration of lands 23
administered and managed by the Department regardless of the source of the other 24
funding. 25
(5) FOR PURPOSES OF THE F UND TRANSFER ALLOWED UNDER THIS 26
SUBSECTION, THE BALANCE OF THE HERITAGE CONSERVATION FUND 27
ESTABLISHED UNDER § 5–1501 OF THIS TITLE AND AN Y OTHER FUNDS 28
APPROPRIATED TO PROGRAM OPEN SPACE (STATESIDE) SHALL BE INCLUDED AS 29
PART OF THE PROGRAM OPEN SPACE STATE LAND ACQUISITION BALANCE. 30
Article – Transportation 31
17–106. 32
50 SENATE BILL 284
(a) If the required security for any vehicle lapses at any time, the registration of 1
that vehicle: 2
(1) Is suspended automatically as of the date of the lapse effective not later 3
than 60 days after notification to the Administration that the lapse has occurred; and 4
(2) Remains suspended until: 5
(i) The required security is replaced and the vehicle owner submits 6
evidence of replaced security on a form as prescribed by the Administration and certified 7
by an insurer or insurance producer; and 8
(ii) Any uninsured motorist penalty fee assessed is paid to the 9
Administration. 10
(b) (1) Except as provided in paragraph (2) of this subsection, each insurer or 11
other provider of required security immediately shall notify the Administ ration 12
electronically of those terminations or other lapses that are final. 13
(2) Each insurer or other provider of required security for a vehicle 14
registered as a Class B (for hire) vehicle under Title 13 of this article shall notify the 15
Administration within 45 days after a termination or other lapse that is final and occurs 16
anytime after the required security is issued or provided. 17
(c) On receipt of a notice under subsection (b) of this section, the Administration 18
shall: 19
(1) Make a reasonable effor t to notify the owner of the vehicle that his 20
registration has been suspended; and 21
(2) Provide electronically the information contained in the notice of the 22
suspension to the Uninsured Division of the Maryland Automobile Insurance Fund. 23
(d) (1) Within 48 hours after an owner is notified by the Administration of the 24
suspension of registration, the owner shall surrender all evidences of that registration to 25
the Administration. 26
(2) If the owner fails to surrender the evidences of registration within the 27
48–hour period, the Administration: 28
(i) Shall attempt to recover from the owner the evidences of 29
registration; and 30
(ii) May suspend his license to drive until he returns to the Motor 31
Vehicle Administration the evidences of registration. 32
SENATE BILL 284 51
(3) The Administration may enter into contracts with private parties to 1
procure the services of independent agents to assist in the recovery of the evidences of 2
registration as authorized in paragraph (2) of this subsection. 3
(e) (1) (i) 1. Except as provided in subparagraphs (iv) and (v) of this 4
paragraph, in addition to any other penalty provided for in the Maryland Vehicle Law, if 5
the required security for a vehicle terminates or otherwise lapses during its registration 6
year, the Administration may assess t he owner of the vehicle with a penalty of $200 for 7
each vehicle without the required security for a period of 1 to 30 days. 8
2. If a fine is assessed, beginning on the 31st day the fine 9
shall increase by a rate of $7 for each day. 10
(ii) Each period during which the required security for a vehicle 11
terminates or otherwise lapses shall constitute a separate violation. 12
(iii) The penalty imposed under this subsection may not exceed 13
$3,500 for each violation in a 12–month period. 14
(iv) The Administr ation may not assess a penalty under this 15
subsection if: 16
1. The registration plates of the vehicle are returned to the 17
Administration within 10 days after the termination or lapse of the required security, as 18
shown by the records of the Administration; and 19
2. A. The certificate of title for the vehicle has been 20
transferred to a new owner; 21
B. The registered owner has moved out –of–state and the 22
registration plates are returned by mail; 23
C. A salvage certificate has been issued for the vehicle; or 24
D. A licensed dealer has taken possession of the vehicle with 25
an obligation to return the registration plates. 26
(v) Before the Administration may assess a penalty under this 27
subsection, the Administration shall first verify that the registration plates for the vehicle 28
were not returned to the Administration within 10 days after the termination or lapse of 29
the required security. 30
(2) (i) Except as provided under paragraph (3) of this subsection, a 31
penalty assessed under this subsection shall be paid as follows: 32
1. 70% to be allocated as provided in subparagraph (ii) of this 33
paragraph; and 34
52 SENATE BILL 284
2. 30% to the Administration, which may be used by the 1
Administration, subject to subsection (f) of this section, to provide funding for contracts 2
with independent agents to assist in the recovery of evidences of registration as authorized 3
in subsection (d)(3) of this section. 4
(ii) For each fiscal year beginning on or after July 1, 2014, the 5
percentage of the penalties specified under s ubparagraph (i)1 of this paragraph shall be 6
allocated among the Safe Schools Fund, the Vehicle Theft Prevention Fund, the Maryland 7
Automobile Insurance Fund, [the Driver Education in Public High Schools Fund, ] the 8
State–Aided Institutions Field Trip Fund, and the General Fund as follows: 9
1. $600,000 to the Safe Schools Fund; 10
2. $2,000,000 to the Vehicle Theft Prevention Fund; 11
3. The amounts specified under subparagraph (iii) of this 12
paragraph to the Maryland Automobile Insurance Fund; 13
4. [$2,000,000 to the Driver Education in Public High 14
Schools Fund; 15
5.] $600,000 to the State–Aided Institutions Field Trip Fund; 16
and 17
[6.] 5. The balance to the General Fund. 18
(iii) 1. Except for fiscal year 2024 and except as provided under 19
subsubparagraph 3 of this subparagraph, the amount distributed to the Maryland 20
Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall equal the 21
amount distributed to the Maryland Automobile Insurance Fund in the prior fiscal year 22
under the provisions of this paragraph adjusted by the change for the calendar year 23
preceding the fiscal year in the Consumer Price Index – All Urban Consumers – Medical 24
Care as published by the United States Bureau of Labor Statistics. 25
2. For fiscal year 2 024, the amount distributed to the 26
Maryland Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall 27
equal the amount distributed to the Maryland Automobile Insurance Fund in the prior 28
fiscal year under the provisions of this paragraph ad justed by the change for the calendar 29
year preceding the fiscal year in the Consumer Price Index – All Urban Consumers – 30
Medical Care as published by the United States Bureau of Labor Statistics plus an 31
additional $2,000,000. 32
3. For fiscal year 2025, the amount distributed to the 33
Maryland Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall 34
SENATE BILL 284 53
equal the amount distributed to the Maryland Automobile Insurance Fund calculated in 1
accordance with subsubparagraph 1 of this subparagraph: 2
A. Plus an additional $3,000,000 dedicated to the exclusive 3
use of the Uninsured Division, which shall become part of the base amount used to calculate 4
the amount distributed under subsubparagraph 1 of this subparagraph in subsequent fiscal 5
years; but 6
B. Excluding the $2,000,000 distributed to the Fund in fiscal 7
year 2024. 8
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 9
as follows: 10
Article – Tax – General 11
10–210.1. 12
(a) (1) In this section the following words have the meanings indicated. 13
(2) “Depreciation” includes any deduction allowed under § 179 of the 14
Internal Revenue Code. 15
(3) “Heavy duty SUV” means a 4–wheeled vehicle that: 16
(i) is manufactured primarily for use on public streets, roads, and 17
highways; 18
(ii) is rated at more than 6,000 but not more than 14,000 pounds 19
gross vehicle weight; and 20
(iii) would be a passenger automobile as defined in § 280F of the 21
Internal Revenue Code if it were rated at 6,000 pounds gross vehicle weight or less. 22
(4) (i) “Manufacturing entity” means a person conducting or operating 23
a trade or business that is primarily engaged in activities that, in accordance with the 24
North American Industrial Classification System (NAICS), United States Manual, United 25
States Office of Management and Budget, 2012 Edition, would be included in Sector 31, 32, 26
or 33. 27
(ii) “Manufacturing entity” does not include a refiner, as defined in 28
§ 10–101 of the Business Regulation Article. 29
(b) In addition to the modifications under §§ 10 –204 through 10 –210 of this 30
subtitle, to determine Maryland adjusted gross income of an individual: 31
54 SENATE BILL 284
(1) (i) except as provided in item (ii) of this item, an amount is added to 1
or subtracted from federal adjusted gross income to reflect the de termination of the 2
depreciation deduction provided under § 167(a) of the Internal Revenue Code and the 3
adjusted basis of property without regard to the additional allowance under § 168(k) of the 4
Internal Revenue Code; and 5
[(ii) item (i) of this item does not apply to property placed in service 6
by a manufacturing entity on or after January 1, 2019;] 7
(II) FOR A MANUFACTURING ENTITY, AN AMOUNT IS ADDED T O 8
OR SUBTRACTED FROM F EDERAL ADJUSTED GROS S INCOME TO REFLECT THE 9
DETERMINATION OF THE DEPRECIATION DEDUCTION PROVIDED UNDER § 167(A) OF 10
THE INTERNAL REVENUE CODE AND THE ADJUSTED BASIS OF PROPERTY BY 11
LIMITING THE ADDITIO NAL ALLOWANCE UNDER § 168(K) OF THE INTERNAL 12
REVENUE CODE TO 20% OF THE ADJUSTED BASIS OF THE QUALIFIED PROPERTY; 13
(2) AN AMOUNT IS ADDED TO OR SUBTRACT ED FROM FEDERAL 14
ADJUSTED GROSS INCOM E TO REFLECT THE DET ERMINATION OF THE 15
DEPRECIATION DEDUCTI ON PROVIDED UNDER § 167(A) OF THE INTERNAL 16
REVENUE CODE AND THE ADJUSTED BASIS OF PROPERTY WITHOUT REGARD TO THE 17
ADDITIONAL ALLOWANCE UNDER § 168(N) OF THE INTERNAL REVENUE CODE; 18
(3) an amount is added to or subtracted from federal adjusted gross income 19
to determine the net operating loss deduction allowed under § 172 of the Internal Revenue 20
Code without regard to an election under § 172(b)(1)(H) of the Internal Revenue Code for a 21
carryback period of up to 5 years; 22
[(3)] (4) (i) except as provided in item (ii) of this item, an amount is 23
added to or subtracted from federal adjusted gross income to reflect the determination of 24
the maximum ag gregate costs that the taxpayer may treat as an expense under § 179 of 25
the Internal Revenue Code for any taxable year without regard to any changes made to 26
that section after December 31, 2002: 27
1. increasing above $25,000 the dollar limitation set forth in 28
§ 179(b)(1) of the Internal Revenue Code; or 29
2. increasing above $200,000 the phase –out threshold set 30
forth in § 179(b)(2) of the Internal Revenue Code; and 31
(ii) item (i) of this item does not apply to property that is placed in 32
service by a manufacturing entity on or after January 1, 2019; 33
[(4)] (5) an amount is added to or subtracted from federal adjusted gross 34
income to reflect the recognition of income from discharge of indebtedness and the 35
SENATE BILL 284 55
allowance of any deduction with respect to original issue discount without regard to § 108(i) 1
of the Internal Revenue Code; and 2
[(5)] (6) an amount is added to or subtracted from federal adjusted gross 3
income to reflect the determination of the depreciation deduction with respect to any heavy 4
duty SUV as if the heavy duty SUV were subject to the limitations of § 280F of the Internal 5
Revenue Code in the same manner as it would be if the vehicle were rated at 6,000 pounds 6
gross vehicle weight or less. 7
10–740. 8
(a) (1) In this section the following words have the meanings indicated. 9
(2) “Commission” means the Maryland Higher Education Commission. 10
(3) “Qualified taxpayer” means an individual who has: 11
(i) incurred at least $20,000 in undergraduate or graduate student 12
loan debt or both; and 13
(ii) has at least $5,000 in outstanding undergraduate or graduate 14
student loan debt or both when submitting an application under subsection (c) of this 15
section. 16
(b) Subject to the limitations of this section, a qualified taxpayer may claim a 17
credit against the State income tax for the taxable year in which the Commission certifies 18
a tax credit under this section. 19
(c) (1) (i) By September 15 of each year, an individual shall submit an 20
application to the Commission for the credit allowed under this section. 21
(ii) The individual shall submit with the application an assurance 22
that the individual will use any credit approved under this section for the repayment of the 23
individual’s undergraduate or graduate student loan debt or both as soon as practicable. 24
(iii) 1. The total amount of the credit claimed under this section 25
shall be recaptured if the individual does not use the credit approved under this section for 26
the repayment of the individual’s undergraduate or graduate student loan debt or both 27
within 3 years from the close of the taxable year for which the credit is claimed. 28
2. The individual who claimed the credit shall pay the total 29
amount of the credit claimed as taxes payable to the State for the taxable year in which the 30
event requiring recapture of the credit occurs. 31
(2) By December 15 of each year the Commission shall certify to the 32
individual the amount of any tax credit approved by the Commission under this section, 33
not to exceed $5,000. 34
56 SENATE BILL 284
(3) (i) For tax year 2025, the total amoun t of tax credits approved by 1
the Commission under this section may not exceed [$9,000,000] $16,000,000. 2
(II) FOR TAX YEAR 2026, THE TOTAL AMOUNT OF TAX CREDITS 3
APPROVED BY THE COMMISSION UNDER THIS SECTION MAY NOT EXCE ED 4
$9,000,000. 5
[(ii)] (III) For any taxable year after [2025] 2026, the total amount 6
of tax credits approved by the Commission under this section may not exceed $18,000,000. 7
(4) (i) Except as provided in subparagraph (ii) of this paragraph, the 8
Commission shall reserve $9,000,000 of the tax credits authorized under paragraph (3) of 9
this subsection for the following individuals in the following order of priority: 10
1. State employees who graduated from institutions of 11
higher education in the State where at least 40% of the attend ees are eligible to receive 12
federal Pell Grants; and 13
2. all other State employees not described under item 1 of 14
this subparagraph. 15
(ii) If the total amount of tax credits applied for by individuals 16
described under subparagraph (i) of this paragrap h is less than $9,000,000 for a taxable 17
year, the Commission may make available the unused amount of credits for use by other 18
qualified taxpayers. 19
(5) To claim the tax credit allowed under this section, an individual shall 20
attach a copy of the Commission’s certification of the approved credit amount to the income 21
tax return. 22
(g) (1) On or before January 1 each year, the Commission shall report to the 23
Governor and, in accordance with § 2 –1257 of the State Government Article, the General 24
Assembly on: 25
(i) the number of applicants for the tax credit authorized under this 26
section; 27
(ii) the number and amounts of tax credits awarded under this 28
section to qualified taxpayers; 29
(iii) a breakdown of the age, gender, race, income, and counties of 30
residency of qualified taxpayers who receive the credit; and 31
(iv) any additional information that the Commission deems relevant. 32
SENATE BILL 284 57
(2) On or before [January] DECEMBER 1, 2026, the Commission shall 1
report to the Governor and, in accordance with § 2 –1257 of the State Government Article, 2
the General Assembly recommendations for changes to statute or regulations that would 3
better target the allocation of tax credits under this program. 4
(i) The tax credit under this section shall be referred to as the Student Loan Debt 5
Relief Tax Credit. 6
10–741. 7
(a) (1) In this section the following words have the meanings indicated. 8
(2) “Business entity” has the meaning stated in § 6 –801 of the Economic 9
Development Article. 10
(3) “Department” means the Department of Commerce. 11
(4) “Eligible project” has the meaning stated in § 6 –801 of the Economic 12
Development Article. 13
(5) “Existing business entity” has the meaning stated in § 6 –801 of the 14
Economic Development Article. 15
(6) “New business entity” has the meaning stated in § 6–801 of the Economic 16
Development Article. 17
(7) “Qualified business entity” has the meaning stated in § 6 –801 of the 18
Economic Development Article. 19
(8) “Qualified position” has the meaning stated in § 6 –801 of the Economic 20
Development Article. 21
(9) “Tier I area” has the meaning stated in § 6 –801 of the Economic 22
Development Article. 23
(10) “Tier II area” has the meaning stated in § 6 –801 of the Economic 24
Development Article. 25
(b) (1) Subject to the limitations of this sectio n, an individual or corporation 26
that is a new business entity that operates an eligible project in a Tier I area or an existing 27
business entity that operates an eligible project may claim a credit against the State income 28
tax equal to the amount stated in the final tax credit certificate approved by the Department 29
for an eligible project. 30
(2) The amount of the credit authorized under paragraph (1) of this 31
subsection is equal to the product of: 32
58 SENATE BILL 284
(i) 1. if the qualified business entity received a certif icate under 1
§ 6–805 of the Economic Development Article before June 1, 2022, 5.75%; or 2
2. if the qualified business entity received a certificate under 3
§ 6–805 of the Economic Development Article on or after June 1, 2022, 4.75%; and 4
(ii) the total amount of wages paid for each qualified position at an 5
eligible project. 6
(3) If the tax credit allowed under this section in any taxable year exceeds 7
the total tax otherwise payable by the qualified business entity for that taxable year, the 8
qualified business entity may claim a refund in the amount of the excess. 9
(c) (1) On enrollment in the More Jobs for Marylanders Program established 10
under Title 6, Subtitle 8 of the Economic Development Article, a qualified business entity 11
shall apply to the Department for a tax credit certificate. 12
(2) The application shall be in the form and shall contain the information 13
the Department requires. 14
(3) (i) Subject to subsections (d) and (e) of this section, the Department 15
may issue a tax credit certificate to a qualified business entity in an amount not to exceed 16
the amount determined under subsection (b)(2) of this section. 17
(ii) In determining the allocation of the aggregate tax credit amounts 18
available in a fiscal year as provided under subsection (d) of t his section, the Department 19
shall give priority to applications for eligible projects in a Tier I area, as defined under § 20
6–801 of the Economic Development Article. 21
(d) (1) In this subsection, “Reserve Fund” means the More Jobs for Marylanders 22
Tax Credit Reserve Fund established under paragraph (2) of this subsection. 23
(2) (i) There is a More Jobs for Marylanders Tax Credit Reserve Fund 24
that is a special continuing, nonlapsing fund that is not subject to § 7 –302 of the State 25
Finance and Procurement Article. 26
(ii) The money in the Reserve Fund shall be invested and reinvested 27
by the Treasurer, and interest and earnings shall be credited to the General Fund. 28
(3) (i) Subject to the limitations of this subsection, the Department shall 29
issue an initial tax credit certificate in an amount equal to a percentage of total wages paid 30
for each qualified position at an eligible project as calculated under subsection (b)(2) of this 31
section. 32
(ii) An initial tax credit certificate issued under this subsection shall 33
state the maximum amount of tax credit for which the qualified business entity is eligible. 34
SENATE BILL 284 59
(iii) 1. Except as otherwise provided in this subparagraph, for any 1
fiscal year, the Department may not issue initial tax credit certificates for credit amounts in 2
the aggregate totaling more than: 3
A. with respect to qualified business entities provided a 4
certificate under § 6 –805 of the Economic Development Article before June 1, 2022, 5
$9,000,000 in a fiscal year; and 6
B. with respect to qualified business entities provided a 7
certificate under § 6 –805 of the Economic Development Article on or after June 1, 2022, 8
$5,000,000 in a fiscal year. 9
2. If the aggregate credit amounts under initial tax credit 10
certificates issued in a fiscal yea r total less than the maximum provided under 11
subsubparagraph 1 of this subparagraph, any excess amount shall remain in the Reserve 12
Fund. 13
3. For any fiscal year, if funds are transferred from the 14
Reserve Fund under the authority of any provision of law other than under paragraph (4) of 15
this subsection, the maximum credit amounts in the aggregate for which the Department 16
may issue initial tax credit certificates shall be reduced by the amount transferred. 17
(iv) For fiscal year 2019 and each fiscal year thereafter, the Governor 18
shall include in the annual budget bill an appropriation to the Reserve Fund in an amount 19
that is no less than the amount the Department reports is necessary under subsection (e) of 20
this section to: 21
1. maintain the current level of manufacturing activity in the 22
State; 23
2. attract new manufacturing activity to the State; and 24
3. attract new businesses to and encourage the expansion of 25
existing businesses within opportunity zones in the State. 26
(v) Notwithstanding the provisions of § 7 –213 of the State Finance 27
and Procurement Article, the Governor may not reduce an appropriation to the Reserve Fund 28
in the State budget as approved by the General Assembly. 29
(vi) 1. [Based] SUBJECT TO SUBSUBPARAGRAPHS 2 AND 3 OF 30
THIS SUBPARAGRAPH, BASED on an amount equal to a percentage of the total actual wages 31
paid for each qualified position at an eligible project as calculated under subsection (b)(2) of 32
this section, the Department shall issue a final tax credit certificate to the qualified business 33
entity. 34
60 SENATE BILL 284
2. FOR FISCAL YEAR 2027, THE TOTAL AMOUNT OF FINAL 1
TAX CREDIT CERTIFICA TES ISSUED BY THE DEPARTMENT MAY NOT EX CEED 2
$15,000,000. 3
3. IF THE TOTAL AMOUNT O F FINAL TAX CREDIT 4
CERTIFICATES THE DEPARTMENT IS REQUIRE D TO ISSUE UNDER THIS 5
SUBPARAGRAPH EXCEEDS $15,000,000 IN FISCAL YEAR 2027, THE DEPARTMENT 6
SHALL ISSUE FINAL TA X CREDIT CERTIFICATES TO QUALIFIED BUSIN ESS ENTITIES 7
ON A PRO RATA BASIS. 8
(4) (i) Except as provided in this paragraph, money appropriated to the 9
Reserve Fund shall remain in the Fund. 10
(ii) 1. Within 15 days after the end of each calendar quarter, the 11
Department shall notify the Comptroller as to each final credit certificate issued during the 12
quarter: 13
A. the maximum credit amount stated in the initial tax credit 14
certificate for the qualified business entity; and 15
B. the final certified credit amount for the qualified business 16
entity. 17
2. On notification that a final credit amount has been 18
certified, the Comptroller shall transfer FROM THE RESERVE FUND TO THE GENERAL 19
FUND: 20
A. FOR FISCAL YEAR 2027, an amount equal to the credit 21
amount stated in the [initial] FINAL tax credit certificate for the qualified business entity 22
[from the Reserve Fund to the General Fund]; AND 23
B. FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR 24
THEREAFTER, AN AMOUNT EQUAL TO T HE CREDIT AMOUNT STATED IN THE INITIAL 25
TAX CREDIT CERTIFICATE FOR THE QUALIFIED BUSINESS ENTITY. 26
(e) On or before July 1 each year, the Department shall report to the Governor and, 27
subject to § 2–1257 of the State Government Article, the General Assembly on the amount of 28
tax credits necessary to: 29
(1) maintain the current level of manufacturing activity in the State; 30
(2) attract new manufacturing activity to the State; and 31
(3) attract new businesses to and encourage the expansion of existing 32
businesses within opportunity zones in the State. 33
SENATE BILL 284 61
(f) The Department and the Comptroller jointly shall adopt regulations to carry 1
out the provisions of this section and to specify criteria and procedures for the application 2
for, approval of, and monitoring of continuing eligibility for the tax credit under this section. 3
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4
as follows: 5
Chapter 275 of the Acts of 2023 6
SECTION 2. AND BE IT FURTHER ENACTED, That the Maryland Department of 7
Health [shall] MAY apply to the Substance Abuse and Mental Health Services 8
Administration at the Center for Mental Health Services for inclusion in the state certified 9
community behavioral health clinic demonstration program for fiscal year [2026] 2029, 10
SUBJECT TO THE LIMITATIONS OF THE STATE BUDGET. 11
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 12
as follows: 13
Article – Tax – General 14
10–102.1. 15
(a) (1) In this section the following words have the meanings indicated. 16
(8) “Pass–through entity’s taxable income” means the portion of a 17
pass–through entity’s income under the federal Internal Revenue Code, calculated without 18
regard to any deduction for taxes based on net income that are imposed by any state or 19
political subdivision of a state, that is: 20
(i) in the case of a member who is a resident[,]: 21
1. EXCEPT AS PROVIDED U NDER ITEM 2 OF THIS ITEM , 22
equal to the member’s distributive or pro rata shares of the pass–through entity; or 23
2. ON ELECTION BY A PAS S–THROUGH ENTITY IN 24
ACCORDANCE WITH SUBS ECTION (D)(4) OF THIS SECTION , DERIVED FROM OR 25
REASONABLY ATTRIBUTABLE TO THE TRADE OR BUSINESS OF THE PASS –THROUGH 26
ENTITY IN THE STATE; OR 27
(ii) in the [cases] CASE of a nonresident member, derived from or 28
reasonably attributable to the trade or business of the pass–through entity in this State. 29
(b) (1) Subject to paragraph (2) of this subsection, in addition to any other tax 30
imposed under this title, a tax is imposed on each pass–through entity. 31
62 SENATE BILL 284
(2) Each pass–through entity: 1
(i) shall pay the tax imposed under paragraph (1) of this subsection 2
with respect to the distributive shares or pro rata shares of the nonresident and nonresident 3
entity members of the pass–through entity; or 4
(ii) may elect to pay the tax imposed under paragraph (1) of this 5
subsection with respect to the distributive shares or pro rata shares of all members of the 6
pass–through entity. 7
(d) (1) With respect to a pass–through entity that pays the tax imposed under 8
subsection (b)(1) of this section in accordance with subsection (b)(2)(i) of this section, the tax 9
imposed is the sum of: 10
(i) a rate equal to the sum of the rate of the tax imposed under § 11
10–106.1 o f this subtitle and the top marginal State tax rate for individuals under § 12
10–105(a) of this subtitle applied to the sum of each nonresident individual member’s 13
distributive share or pro rata share of the pass–through entity’s nonresident taxable income; 14
and 15
(ii) the rate of the tax for a corporation under § 10 –105(b) of this 16
subtitle applied to the sum of each nonresident entity member’s distributive share or pro rata 17
share of the pass–through entity’s nonresident taxable income. 18
(2) EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION, A 19
PASS–THROUGH ENTITY THAT PAYS THE TAX IMPOSED UNDER SUBSECTION (B)(1) 20
OF THIS SECTION IN A CCORDANCE WITH SUBSE CTION (B)(2)(II) OF THIS SECTION 21
SHALL CALCULATE PASS –THROUGH ENTITY TAXAB LE INCOME FOR RESIDE NT 22
MEMBERS IN ACCORDANCE WITH SUBSECTION (A)(8)(I)1 OF THIS SECTION. 23
(3) With respect to a pass –through entity that pays the tax imposed under 24
subsection (b)(1) of this section in accordance with subsection (b)(2)(ii) of this section AND 25
CALCULATES PASS–THROUGH ENTITY TAXABLE INCOME FOR RESIDENT MEMBERS IN 26
ACCORDANCE WITH SUBSECTION (A)(8)(I)1 OF THIS SECTION, the tax imposed is the 27
sum of: 28
(i) a rate equal to the sum of the rate of the tax imposed under § 29
10–106.1 of this subtitle and the top m arginal State tax rate for individuals under § 30
10–105(a) of this subtitle applied to the sum of each individual member’s distributive share 31
or pro rata share of the pass–through entity’s taxable income; and 32
(ii) the rate of the tax for a corporation u nder § 10 –105(b) of this 33
subtitle applied to the sum of each entity member’s distributive share or pro rata share of 34
the pass–through entity’s taxable income. 35
SENATE BILL 284 63
(4) A PASS–THROUGH ENTITY THAT PAYS THE TAX IMPOSED UNDER 1
SUBSECTION (B)(1) OF THIS SECTION IN ACCORDANCE WITH SUBSECTION (B)(2)(II) 2
OF THIS SECTION MAY ELECT TO CALCULATE P ASS–THROUGH ENTITY TAXAB LE 3
INCOME FOR RESIDENT MEMBERS IN ACCORDANCE WITH SUBSECTION (A)(8)(I)2 OF 4
THIS SECTION. 5
(5) WITH RESPECT TO A PASS–THROUGH ENTITY THAT PAYS THE TAX 6
IMPOSED UNDER SUBSECT ION (B)(1) OF THIS SECTION IN A CCORDANCE WITH 7
SUBSECTION (B)(2)(II) OF THIS SECTION AND ELECTS TO CALCULATE 8
PASS–THROUGH ENTITY TAXAB LE INCOME FOR RESIDE NT MEMBERS IN 9
ACCORDANCE WITH SUBSECTION (A)(8)(I)2 OF THIS SECTION, THE TAX IMPOSED IS 10
THE SUM OF: 11
(I) A RATE EQUAL TO THE SUM OF THE RATE OF T HE TAX 12
IMPOSED UNDER § 10–106.1 OF THIS SUBTITLE AND THE TOP MARGINAL STATE TAX 13
RATE FOR INDIVIDUALS UNDER § 10–105(A) OF THIS SUBTITLE APPLIED TO THE SUM 14
OF EACH RESIDENT IND IVIDUAL MEMBER ’S DISTRIBUTIVE SHARE OR PRO RATA 15
SHARE OF THE PASS –THROUGH ENTITY’S TAXABLE INCOME AS DESCRIBED UNDER 16
SUBSECTION (A)(8)(I)2 OF THIS SECTION; 17
(II) THE RATE OF THE TAX FOR A CORPORATION UN DER § 18
10–105(B) OF THIS SUBTITLE APP LIED TO THE SUM OF E ACH RESID ENT ENTITY 19
MEMBER’S DISTRIBUTIVE SHARE OR PRO RATA SHARE OF THE PASS –THROUGH 20
ENTITY’S TAXABLE INCOME AS DESCRIBED UNDER SUBSECTION (A)(8)(I)2 OF THIS 21
SECTION; 22
(III) A RATE EQUAL TO THE SUM OF THE RATE OF T HE TAX 23
IMPOSED UNDER § 10–106.1 OF THIS SUBTITLE AND THE TOP MARGINAL STATE TAX 24
RATE FOR INDIVIDUALS UNDER § 10–105(A) OF THIS SUBTITLE APPLIED TO THE SUM 25
OF EACH NONRESIDENT INDIVIDUAL MEMBER’S DISTRIBUTIVE SHARE OR PRO RATA 26
SHARE OF THE PASS–THROUGH ENTITY’S NONRESIDENT TAXABLE INCOME; AND 27
(IV) THE RATE OF THE TAX FOR A CORPORATION UN DER § 28
10–105(B) OF THIS SUBTITLE APPLIED TO THE SUM OF EACH NONRESIDENT ENTITY 29
MEMBER’S DISTRIBUTIVE SHARE OR PRO RATA SHARE OF THE PASS –THROUGH 30
ENTITY’S NONRESIDENT TAXABLE INCOME. 31
(6) (I) A PASS–THROUGH ENTITY THAT PAYS THE TAX UN DER 32
SUBSECTION (B)(1) OF THIS SECTION IN ACCORDANCE WITH SUBSECTION (B)(2)(II) 33
OF THIS SECTION SHALL INDICATE, IN THE FORM AND MANNER PRESCRIBED BY THE 34
COMPTROLLER, WHETHER THE PASS–THROUGH ENTITY IS CALCULATING THE TAX IN 35
ACCORDANCE WITH PARAGRAPH (2) OR (4) OF THIS SUBSECTION. 36
64 SENATE BILL 284
(II) IF A PASS –THROUGH ENTITY FAILS TO INDICATE IN 1
ACCORDANCE WITH SUBPARAGRAPH (I) OF THIS PARAGRAPH THE MANNER IN WHICH 2
THE PASS –THROUGH ENTITY IS CA LCULATING THE TAX , THE TAX SHALL BE 3
CALCULATED IN ACCORDANCE WITH PARAGRAPH (2) OF THIS SUBSECTION. 4
[(3)] (7) The tax required to be paid for any taxable year by a pass–through 5
entity may not exceed: 6
(i) with respect to a pass –through entity that pays the tax imposed 7
under subsection (b)(1) of this section in accordance with subsection (b)(2)(i) of this section, 8
the sum of all of the nonresident and nonresident entity members’ shares of the pass–through 9
entity’s distributable cash flow; and 10
(ii) with respect to a pass –through entity that pays the tax imposed 11
under subsection (b)(1) of this section in accordance with subsection (b)(2)(ii) of this section, 12
the sum of all of the members’ shares of the pass–through entity’s distributable cash flow. 13
Chapter 604 of the Acts of 2025 14
SECTION 35. AND BE IT FURTHER ENACTED, That Section 5 of this Act shall 15
take effect January 1, 2026, and shall be applicable to all taxable years beginning after 16
December 31, [2025] 2026. 17
SECTION 4. 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 18
as follows: 19
Article – Local Government 20
20–403. 21
(a) Except as provided in § 20 –404 of this subtitle, a county may impose, by 22
resolution, a hotel rental tax. 23
(b) (1) This subsection applies only to Calvert County, Charles County, and St. 24
Mary’s County. 25
(2) The governing body of a county shall hold a public hearing before 26
imposing a hotel rental tax. 27
(c) (1) Subject to subsection (d) of this section, Titles 1, 2, and 11 and Title 13, 28
Subtitle 3 of the Tax – General Article and this title shall prevail to the extent of any conflict 29
with any local law, ordinance, or resolution relating to the county hotel rental tax. 30
(d) Beginning January 1, [2028] 2029, Titles 1, 2, and 11 and Title 13, Subtitle 3 31
of the Tax – General Article and this title shall prevail to the extent of any conflict with an 32
agreement between a county and an accommodations intermediary. 33
SENATE BILL 284 65
20–434. 1
(a) Except as provided in subsection (b) of this section, a municipality that 2
imposes a hotel rental tax may: 3
(1) provide for the administration and collection of the tax; and 4
(2) impose penalties for failure to collect, report, or pay the tax. 5
(b) The Comptroller shall: 6
(1) collect the municipal hotel rental tax from accommodations 7
intermediaries in the same manner as the county hotel rental tax under this subtitle; and 8
(2) distribute to a municipality, before the last day of the next month, the 9
hotel tax revenue that is collected on behalf of the municipality from an accommodations 10
intermediary during the preceding month. 11
(d) (1) Subject to subsection (e) of this section, Title 11 and Title 13, Subtitle 3 12
of the Tax – General Article and this title shall prevail to the extent of any conflict with 13
any local law, ordinance, or resolution relating to a municipal hotel rental tax. 14
(e) Beginning January 1, [2028] 2029, Title 11 and Title 13, Subtitle 3 of the 15
Tax – General Article and this title shall prevail to the extent of any conflict with an 16
agreement between a municipality and an accommodations intermediary. 17
Chapter 638 of the Acts of 2025 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 19
1, [2027] 2028. 20
SECTION 5. 6. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 21
as follows: 22
Article – Transportation 23
13–936. 24
(a) In this section, “historic motor vehicle” means a motor vehicle, including a 25
passenger vehicle, motorcycle, or truck that: 26
(1) Is [a model year of 1999 or earlier] AT LEAST 25 YEARS OLD; 27
(2) Has not been substantially altered from the manufacturer’s original 28
design; and 29
66 SENATE BILL 284
(3) Meets criteria contained in regulations adopted by the Administration. 1
(b) In this section, “historic motor vehicle” does not include a vehicle that has been 2
remanufactured or reconstructed as a replica of an original vehicle. 3
(c) If registered with the Administration under this section, every historic motor 4
vehicle is a Class L (historic) vehicle. 5
(d) Except as provided in subsection (i) of this section, for each Class L (historic) 6
vehicle, the annual registration fee is: 7
(1) On or after July 1, 2024, but before July 1, 2025, $45.50; and 8
(2) On or after July 1, 2025, $55.50. 9
(e) In applying for registration of a historic motor vehicle under this section, the 10
owner of the vehicle shall submit with the application a certific ation that the vehicle for 11
which the application is made: 12
(1) Will be maintained for use in exhibitions, club activities, parades, tours, 13
and occasional transportation; and 14
(2) Will not be used: 15
(i) For general daily transportation; 16
(ii) Primarily for the transportation of passengers or property on 17
highways; 18
(iii) For employment; 19
(iv) For transportation to and from employment or school; or 20
(v) For commercial purposes. 21
(f) Except as provided in § 13 –936.1 of this subtitle, on registration of a vehicle 22
under this section, the Administration shall issue a special, historic motor vehicle 23
registration plate of the size and design that the Administration determines. 24
(g) Unless the presence of the equipment was specifically required by a statute of 25
this State as a condition of sale when the vehicle was manufactured, the presence of any 26
specific equipment is not required for the operation of a vehicle registered under this 27
section. 28
(h) (1) A vehicle with a model year of 1985 or ear lier registered under this 29
section is exempt from any statute that requires vehicle inspections. 30
SENATE BILL 284 67
(2) A vehicle registered under this section is exempt from any statute that 1
requires the use and inspection of emission controls. 2
(i) (1) For a motor vehicle manufactured at least 60 years prior to the current 3
model year, there is a onetime registration fee of $50.00. 4
(2) Registration of a motor vehicle manufactured under this subsection is 5
not transferable to a subsequent owner. 6
SECTION 7. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 7
as follows: 8
Chapter 212 of the Acts of 2025 9
SECTION 2. AND BE IT FURTHER ENACTED, THAT § 5–650.1 OF THE 10
CORPORATIONS AND ASSOCIATIONS ARTICLE, AS ENACTED BY SECTION 1 OF THIS 11
ACT, SHALL BE CONSTRUED T O APPLY ONLY PROSPEC TIVELY ON OR AFTER 12
OCTOBER 1, 2025, AND MAY NOT BE APPLIED OR INTERPRETED TO HAVE ANY EFFECT 13
ON THE ESCHEATMENT O F NONESCHEAT CAPITAL CREDITS BEFORE OCTOBER 1, 14
2025. 15
SECTION [2.] 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2025. 17
Chapter 213 of the Acts of 2025 18
SECTION 2. AND BE IT FURTHER ENACTED, THAT § 5–650.1 OF THE 19
CORPORATIONS AND ASSOCIATIONS ARTICLE, AS ENACTED BY SECTION 1 OF THIS 20
ACT, SHALL BE CONSTRUED T O APPLY ONLY PROSPEC TIVELY ON OR AFTER 21
OCTOBER 1, 2025, AND MAY NOT BE APPLIED OR INTERPRETED TO HAVE ANY EFFECT 22
ON THE ESCHEATMENT O F NONESCHEAT CAPITAL CREDITS BEFORE OCTOBER 1, 23
2025. 24
SECTION [2.] 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2025. 26
SECTION 8. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 27
as follows: 28
Chapter 9 of the Acts of the 2025 Special Session 29
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 30
That: 31
(b) There is a Maryland Reparations Commission. 32
68 SENATE BILL 284
(c) The Commission consists of: 1
(7) one member of the National Association for the Advancement of Colored 2
People, [designated by the National Association for the Advancement of Colored People 3
Maryland State Conference President] APPOINTED JOINTLY BY THE PRESIDENT OF THE 4
SENATE AND THE SPEAKER OF THE HOUSE; 5
(12) a representative of the Maryland Lynching Truth and Reconciliation 6
Commission, designated by the Chair of the Commission; [and] 7
(13) A REPRESENTATIVE OF THE MARYLAND COMMISSION FOR 8
AFRICAN AMERICAN HISTORY AND CULTURE, DESIGNATED BY THE CHAIR OF THE 9
COMMISSION; 10
(14) ONE FAITH LEADER APP OINTED BY THE PRESIDENT OF THE 11
SENATE; 12
(15) ONE FAITH LEADER APPOINTED BY THE SPEAKER OF THE HOUSE; 13
[(13)] (16) the following members appointed by the Governor: 14
(i) a mental health expert; 15
(ii) two historians, with expertise in researching the impacts of 16
enslavement and housing segregation; 17
(iii) a representative of a religious institution that serves a community 18
with a high minority population; 19
(iv) an attorney with expertise in civil rights law or constitutional law; 20
AND 21
(v) a representative of an African American financial institution; and 22
[(vi) two members of the general public] 23
(17) FOUR MEMBERS OF THE GENERAL PUBLIC , TWO APPOINTED BY 24
THE PRESIDENT OF THE SENATE AND TWO APPOIN TED BY THE SPEAKER OF THE 25
HOUSE. 26
(g) (1) The Commission shall: 27
(I) HOLD AT LEAST THREE PUBLIC HEARINGS AND 28
CONTINUOUSLY SOLICIT PUBLIC INPUT; 29
SENATE BILL 284 69
[(i)] (II) study and make recommendations relating to appropriate 1
benefits to be offered to individuals impacted by historical inequality; 2
[(ii)] (III) on or before [January 1, 2027 ] SEPTEMBER 1, 2028, 3
submit a preliminary report of its findings and recommendations to the Governor and, in 4
accordance with § 2–1257 of the State Government Article, the General Assembly; and 5
[(iii)] (IV) on or before [November 1, 2027 ] DECEMBER 1, 2028, 6
submit a final report of its findings and recommendations to the Governor and, in 7
accordance with § 2–1257 of the State Government Article, the General Assembly. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
1, 2025. It shall remain effective for a period of [3] 4 years and, at the end of June 30, [2028] 10
2029, this Act, with no further action required by the General Assembly, shall be abrogated 11
and of no further force and effect. 12
SECTION 5. 6. 9. AND BE IT FURTHER ENACTED, That the unexpended fiscal 13
year 2018 special fund appropriation of $980,000 for outdoor recreation land loan – capital 14
appropriation (K00A05.10) within the Department of Natural Resources allocated to the 15
College of Southern Maryland may be repurposed for State land acquisition under Program 16
Open Space. 17
SECTION 6. 7. 10. AND BE IT FURTHER ENACTED, That, notwithstanding any 18
other provision of law, on or before June 30, 2026, the Governor may transfer to the 19
Maryland Health Benef it Exchange (D78Y01) $250,000 from the Child Care Capital 20
Support Revolving Loan Fund established under § 9.5 –113.1 of the Education Article to 21
conduct an outreach campaign to help child care workers enroll in health insurance and 22
conduct a survey of the l andscape and availability of health insurance among child care 23
providers. 24
SECTION 6. 7. 8. 11. AND BE IT FURTHER ENACTED, That, notwithstanding any 25
other provision of law, on or before June 30, 2026, the Governor may transfer to the General 26
Fund the following: 27
(1) $259,000,000 from the Renewable Portfolio Standard/ACP Account of 28
the Maryland Strategic Energy Investment Fund established under § 9 –20B–05 of the 29
State Government Article; 30
(2) $187,609,007 $119,151,120 from the Fiscal Responsibility Fund 31
established under § 7–330 of the State Finance and Procurement Article; 32
(3) $33,000,000 from the Administration Account of the Maryland 33
Strategic Energy Investment Fund established under § 9–20B–05; 34
70 SENATE BILL 284
(4) $10,000,000 from the Maryland Loan Assistance Repayment Program 1
Fund for Nurses and Nursing Support Staff established under § 24 –1902 of the Health – 2
General Article Nurse Support Program Assistance Fund established under § 11–405 of the 3
Education Article; and 4
(5) $2,000,000 from the Performance In centive Grant Fund established 5
under § 9–3209 of the State Government Article; 6
(6) $2,000,000 from the Maryland Police Training and Standards 7
Commission Fund established under § 3–206.1 of the Public Safety Article; and 8
(7) $1,000,000 $3,500,000 from the Non –Depository Special Fund 9
established under § 2–120 of the Financial Institutions Article; and 10
(8) $1,500,000 from the Banking Institution and Credit Union Regulation 11
Fund established under § 2–118 of the Financial Institutions Article. 12
SECTION 7. 8. 9. 12. AND BE IT FURTHER ENACTED, That, notwithstanding any 13
other provision of law, on or before June 30, 2026, the Governor may transfer to the General 14
Fund $1,038,910 $1,243,484 from the Dedicated Purpose Account established under § 15
7–310 of the State Finance and Procurement Article for the following purposes: 16
(1) $355,760 for domestic violence centers; 17
(2) $201,292 for assisted living centers; 18
(3) $152,732 for the State Police Gun Center; 19
(4) $101,537 for police departments to coordinate task forces that cross 20
jurisdictional boundaries; 21
(5) $100,001 for the Center for Neuroscience of Social Justice; 22
(6) $75,988 for violence prevention and interruption organizations; and 23
(7) $51,600 for the Greater Baltimore Regional Integrated Crisis System; 24
(8) $197,530 to rebuild State government and modernize human resources 25
practices; and 26
(9) $7,044 for food banks. 27
SECTION 9. 10. 13. AND BE IT FURTHER ENACTED, That, notwithstanding any 28
other provision of law, on or before June 30, 2026, the Governor may transfer to the General 29
Fund $380,000,000 from the Local Income Tax Reserve Account established under § 2–606 30
of the Tax – General Article. 31
SENATE BILL 284 71
SECTION 8. AND BE IT FURTHER ENACTED, That, notwithstanding any other 1
provision of law, on or before June 30, 2027, the Governor may transfer to the General Fund 2
$6,700,000 from the Maternal and Child Health Population Health Improvement Fund 3
established under § 19–210 of the Health – General Article. 4
SECTION 9. 10. 11. 14. AND BE IT FURTHER ENACTED, That, notwithstanding 5
any other provision of law, on or before June 30, 2027, the Governor may transfer to the 6
General Fund the following, with the funds for related projects to be replaced with General 7
Obligation Bonds: 8
(1) $70,000,000 from the Bay Restoration Fund established under § 9
9–1605.2 of the Environment Article; and 10
(2) $13,068,000 $7,011,156 from the Waterway Improvement Fund 11
established under § 8–707 of the Natural Resources Article; and 12
(3) $188,844 from the Program Open Space Local Funds that reverted to 13
and are held in a special account by the Department of Natural Resources under § 14
5–905(b)(7) of the Natural Resources Article. 15
SECTION 10. 11. 12. 15. AND BE IT FURTHER ENACTED, That the fiscal year 16
2026 General Fund appropriation of $3,000,000 for Facility Operations Administration and 17
Support (V00E01.02) within the Department of Juvenile Services restricted for the purpose 18
of reopening the Alfred D. Noyes Children’s Center as an adolescent drug treatment center 19
may be instead used to provide drug treatment services at other child–serving facilities and 20
to reopen the Alfred D. Noyes Children’s Center as a facility for children. 21
SECTION 11. AND BE IT FURTHER ENACTED, That, notwithstanding any other 22
provision of law, no amounts may be expended in fiscal year 2027 to pay increases over the 23
rates in effect on January 21, 2026, for providers of nonpublic placements under § 8–406 of 24
the Education Article. 25
SECTION 12. 13. 16. AND BE IT FURTHER ENACTED, That, notwithstanding any 26
other provision of law, no amounts may be expended in fiscal year 2027 to pay increases 27
over the rates in effect on January 21, 2026, for providers with rates set by the Interagency 28
Rates Committee under § 8–417 of the Education Article. 29
SECTION 13. 14. 17. AND BE IT FURTHER ENACTED, That, notwithstanding any 30
other provision of law, the Interagency Commission on School Construction may reallocate 31
federal funding awarded from fiscal years 2022 and 2023 for heating, vent ilation, and 32
air–conditioning upgrades for public school buildings to ensure compliance with the 33
provisions of the American Rescue Plan Act of 2021. 34
SECTION 18. AND BE IT FURTHER ENACTED, That, notwithstanding any other 35
provision of law, the Comptroller shall set the annual interest rate for a digital advertising 36
gross revenues tax refund that is the result of a final decision of the highest court of the State 37
or the United States to which an appeal is taken which finds that the tax imposed under § 38
72 SENATE BILL 284
7.5–102 of the Tax – General Article is unconstitutional at a percentage, rounded to the 1
nearest whole number, that is the percentage that equals the average prime rate of interest 2
quoted by commercial banks to large businesses during the 12 months immediately 3
preceding the month in which the final decision is rendered, based on a determination by 4
the Board of Governors of the Federal Reserve Bank. 5
SECTION 19. AND BE IT FURTHER ENACTED, That: 6
(a) The Comptroller, in consultation with stakeholders, shall study the impact of 7
the change in the calculation of Maryland income tax for pass –through entities electing to 8
be taxed at the entity level as a result of alterations to § 10–102.1 of the Tax – General Article, 9
as enacted by Section 5 of Chapter 604 of the Acts of the General Assembly of 2025 and 10
Sections 4 and 5 of this Act, and alterations to the federal cap on itemized deductions as 11
enacted by Public Law 119–21. 12
(b) On or before December 1 each year, the Comptroller shall submit a report on 13
its findings and recommendations to the General Assembly, in accordance with § 2–1257 of 14
the State Government Article, including: 15
(1) the operational impact of the changes described under subsection (a) of 16
this section on the Office of the Comptroller; 17
(2) an assessment of the potential changes to S corporation elections at the 18
federal level; and 19
(3) an analysis of alternative tax calculation options for pass –through 20
entities for each reporting period. 21
SECTION 20. AND BE IT FURTHER ENACTED, That: 22
(a) The Department of Budget and Management may process a budget amendment 23
to appropriate funds from the Population Health Improvement Fund, established under § 24
13–5602 of the Health – General Article, to the Medical Care Programs Administration 25
within the Maryland Department of Health if the Health Services Cost Review Commission 26
increases hospital rates to provide financial assistance to Medicare Advantage Plans in 27
calendar year 2026. 28
(b) The Health Services Cost Review Commission shall examine: 29
(1) whether financial assistance to Medicare Advantage Plans is required 30
to maintain the viability of the plans in calendar year 2026; and 31
(2) whether hospital rates should be adjusted to provide financial assistance 32
of up to $140,000,000. 33
SECTION 21. AND BE IT FURTHER ENACTED, That, notwithstanding any other 34
provision of law, the Developmental Disabilities Administration may use the fiscal year 2027 35
SENATE BILL 284 73
appropriation for consulting, financial management services, and data analytics, including 1
artificial intelligence, through: 2
(1) an expedited procurement as defined in § 13–108(d) of the State Finance 3
and Procurement Article; or 4
(2) an interagency agreement as determined to be appropriate in 5
consultation with the Department of Budget and Management. 6
SECTION 14. 15. 22. AND BE IT FURTHER ENACTED, That Section 3 of this Act 7
shall be applicable to all taxable years beginning after December 31, 2025. 8
SECTION 23. AND BE IT FURTHER ENACTED, That Section 4 of this Act shall be 9
applicable to all taxable years beginning after December 31, 2026. 10
SECTION 15. 16. 24. AND BE IT FURTHER ENACTED, That Sections 2 and 3 of 11
this Act shall take effect July 1, 2026. Section 19 of this Act shall remain effective for a 12
period of 3 years and 7 months and, at the end of December 31, 2029, Section 19 of this Act, 13
with no further action required by the General Assembly, shall be abrogated and of no 14
further force and effect. 15
SECTION 16. 17. 25. AND BE IT FURTHER ENACTED, That Section 4 5 of this 16
Act shall take effect July 1, 2027 2028, the effective date of Chapter 638 of the Acts of the 17
General Assembly of 2025 , as amended by Section 5 of this Act . If the effective date of 18
Chapter 638 is further amended, Section 4 5 of this Act shall take effect on the taking effect 19
of Chapter 638. 20
SECTION 18. 26. AND BE IT FURTHER ENACTED, That Section 5 6 of this Act 21
shall take effect July 1, 2027. 22
SECTION 16. 17. 19. 27. AND BE IT FURTHER ENACTED, That, except as 23
provided in Section 15 Sections 15 and 16 16, 17, and 18 24, 25, and 26 of this Act, this Act 24
shall take effect June 1, 2026. 25