Economic Development - Rural Readiness Program and Rural Maryland Capacity Building Fund - Establishment

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0300*

SENATE BILL 300
C8 6lr1867
CF HB 461
By: Senators Hester, Gallion, Gile, Harris, West, Henson, Brooks, and Carozza
Carozza, and Hershey
Introduced and read first time: January 21, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 20, 2026

CHAPTER ______

AN ACT concerning 1

Economic Development – Rural Readiness Program and Rural Maryland 2
Capacity Building Fund – Establishment 3

FOR the purpose of establishing the Rural Readiness Program administered by the Rural 4
Maryland Council to provide assistance to rural communities to enhance their 5
capacity for economic development; requir ing priority to be given when making 6
certain grants to entities that have completed the Rural Readiness Program; 7
establishing the Rural Maryland Capacity Building Fund as a special, nonlapsing 8
fund to be administered by the Council to provide grants to support certain planning 9
and capacity building initiatives; and generally relating to rural communities. 10

BY renumbering 11
Article – Economic Development 12
Section 13–416 13
to be Section 13–417 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2025 Supplement) 16

BY repealing and reenacting, without amendments, 17
Article – Economic Development 18
Section 13–401 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2025 Supplement) 21

2 SENATE BILL 300

BY adding to 1
Article – Economic Development 2
Section 13–416 3
Annotated Code of Maryland 4
(2024 Replacement Volume and 2025 Supplement) 5

BY repealing and reenacting, without amendments, 6
Article – State Finance and Procurement 7
Section 2–206(e)(1) and 2–207(c)(1) and (g)(2)(i) 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10

BY repealing and reenacting, with amendments, 11
Article – State Finance and Procurement 12
Section 2–206(e)(5) 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2025 Supplement) 15

BY adding to 16
Article – State Finance and Procurement 17
Section 2–207.1 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2025 Supplement) 20

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That Section(s) 13 –416 of Article – Economic Development of the Annotated Code of 22
Maryland be renumbered to be Section(s) 13–417. 23

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 24
as follows: 25

Article – Economic Development 26

13–401. 27

In this subtitle, “Council” means the Rural Maryland Council. 28

13–416. 29

(A) (1) IN THIS SECTION THE FOLLOWIN G WORDS HAVE THE MEA NINGS 30
INDICATED. 31

(2) (I) “ELIGIBLE APPLICANT” MEANS: 32

1. A NONPROFIT ORGANIZATION; 33

SENATE BILL 300 3

2. A UNIT OF LOCAL GOVERNMENT; 1

3. A STATE–RECOGNIZED TRIBE; 2

4. AN INSTITUTION OF HI GHER EDUCATION IN TH E 3
STATE; 4

5. A REGIONAL PLANNING AGENCY; OR 5

6. AN ECONOMIC OR WORKF ORCE DEVELOPMENT 6
ORGANIZATION. 7

(II) “ELIGIBLE APPLICANT ” DOES NOT INCLUDE STATE 8
GOVERNMENTAL ENTITIES. 9

(3) “PROGRAM” MEANS THE RURAL READINESS PROGRAM. 10

(4) “RURAL COMMUNITY” HAS THE MEANING STATED I N § 2–207 OF 11
THE STATE FINANCE AND PROCUREMENT ARTICLE. 12

(B) THE GENERAL ASSEMBLY FINDS THAT: 13

(1) RURAL COMMUNITIES AR E OFTEN DISADVANTAGE D WHEN 14
COMPETING FOR FINANCIAL AND OTHER RESOURCES DUE TO: 15

(I) A LACK OF CAPACITY A ND POP ULATION DENSITY 16
RESULTING IN LIMITED RESOURCES DUE TO A SMALLER TAX BASE; AND 17

(II) LIMITED ACCESS TO CR ITICAL INFRASTRUCTUR E, 18
INCLUDING BROADBAND AND TRANSPORTATION; 19

(2) A DEFICIENCY EXISTS IN THE ESSENTIAL ELEMENTS NEEDED FOR 20
RURAL COMMUNITIES TO THRIVE AND ADDRESS T HE NEEDS OF THE RURA L 21
COMMUNITY; 22

(3) RURAL COMMUNITIES ST RUGGLE TO RECRUIT AN D RETAIN 23
SKILLED STAFF NEEDED TO IMPLEMENT AND MANAGE PROJECTS PARTICULARLY IN 24
TECHNICAL SUPPORT FOR ECONOMIC AND COMMUNITY DEVELOPMENT; 25

(4) RURAL COMMUN ITIES EXPERIENCE CHA LLENGES IN SOCIAL 26
COHESION AND NETWORK S THAT MAKE IT HARD TO MOBILIZE RESOURCE S AND 27
COLLECTIVELY ADDRESS ISSUES; 28

4 SENATE BILL 300

(5) THE POPULATION OF RU RAL COMMUNITIES IS L IKELY TO BE 1
OLDER, POORER, AND SICKER DUE TO AG E AND AN OUTMIGRATIO N OF YOUNGER 2
PEOPLE; AND 3

(6) NOT ADDRESSING THE C HALLENGES OF RURAL C OMMUNITIES 4
WILL MANIFEST AS DIS PARITIES IN HEALTH C ARE ACCESS , EDUCATIONAL 5
ATTAINMENT, ECONOMIC OPPORTUNITIES, AND INFRASTRUCTURE DEVELOPMENT. 6

(C) THERE IS A RURAL READINESS PROGRAM ADMIN ISTERED BY THE 7
COUNCIL. 8

(D) (1) THE PURPOSE OF THE PROGRAM IS TO ENHANCE THE CAPACITY 9
IN RURAL COMMUNITIES FOR ECONOMIC DEVELOP MENT BY ASSISTING EL IGIBLE 10
APPLICANTS ACCEPTED INTO THE PROGRAM WITH GRANT AP PLICATIONS AND 11
DEVELOPING PROJECTS THAT GENERATE REVENUE. 12

(2) THE COUNCIL SHALL ESTABLISH ASSESSMENTS, TOOLKITS, AND 13
OTHER RESOURCES TO SUPPORT THE PURPOSE OF THE PROGRAM. 14

(E) (1) ELIGIBLE APPLICANTS M AY APPLY TO THE COUNCIL TO 15
PARTICIPATE IN THE PROGRAM. 16

(2) THE COUNCIL’S EXECUTIVE BOARD SHALL ESTABLISH: 17

(I) CRITERIA TO EVALUATE ELIGIBLE APPLICANTS FOR 18
ACCEPTANCE INTO THE PROGRAM; AND 19

(II) PARTICIPATION GUIDELINES. 20

(F) (1) THE COUNCIL’S EXECUTIVE DIRECTOR SHALL CERTIF Y THE 21
ELIGIBLE APPLICANTS THAT HAVE SUCCESSFULLY COMPLETED THE PROGRAM. 22

(2) ELIGIBLE APPLICANTS T HAT HAVE RECEIVED A COMPLETION 23
CERTIFICATE SHALL BE GIVEN PRIORITY FOR THE FOLLOWING GRANT PROGRAMS: 24

(I) THE MARYLAND AGRICULTURAL EDUCATION AND RURAL 25
DEVELOPMENT ASSISTANCE FUND ESTABLISHED UNDE R § 2–206 OF THE STATE 26
FINANCE AND PROCUREMENT ARTICLE; 27

(II) THE RURAL MARYLAND PROSPERITY INVESTMENT FUND 28
ESTABLISHED UNDER § 2–207 OF THE STATE FINANCE AND PROCUREMENT 29
ARTICLE; AND 30

SENATE BILL 300 5

(III) THE RURAL MARYLAND CAPACITY BUILDING FUND 1
ESTABLISHED UNDER § 2–207.1 OF THE STATE FINANCE AND PROCUREMENT 2
ARTICLE. 3

Article – State Finance and Procurement 4

2–206. 5

(e) (1) There is a Maryland Agricultural Education and Rural Development 6
Assistance Board. 7

(5) The Board shall give funding priority to organizations described in 8
subsection (c)(2)(i) of this section that have: 9

(i) obtained an equal matching amount of funding from a source 10
other than the State in the immediate prior fiscal year; [or] 11

(ii) sufficient evidence of a commitment of a third party funding 12
source to provide an equal matching amount of funding in the current fiscal year; OR 13

(III) RECEIVED A COMPLETIO N CERTIFICATE UNDER § 13–416 14
OF THE ECONOMIC DEVELOPMENT ARTICLE. 15

2–207. 16

(c) (1) There is a Rural Maryland Prosperity Investment Fund. 17

(g) (2) (i) Subject to subparagraph (ii) of this paragraph, the Board shall 18
award grants from the Fund under subsection (f)(1)(ii) of this section on a competitive basis 19
in accordance with the procedures in § 2–206(e) of this subtitle. 20

2–207.1. 21

(A) (1) IN THIS SE CTION THE FOLLOWING WORDS HAVE THE MEANI NGS 22
INDICATED. 23

(2) “BOARD” MEANS THE MARYLAND AGRICULTURAL EDUCATION 24
AND RURAL DEVELOPMENT ASSISTANCE BOARD ESTABLISHED IN § 2–206 OF THIS 25
SUBTITLE. 26

(3) “COUNCIL” MEANS THE RURAL MARYLAND COUNCIL 27
ESTABLISHED UNDER TITLE 13, SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT 28
ARTICLE. 29

6 SENATE BILL 300

(4) “ELIGIBLE APPLICANT” HAS THE MEANING STAT ED IN § 13–416 1
OF THE ECONOMIC DEVELOPMENT ARTICLE. 2

(5) “FUND” MEANS THE RURAL MARYLAND CAPACITY BUILDING 3
FUND. 4

(6) “RURAL COMMUNITY” HAS THE MEANING STAT ED IN § 2–207 OF 5
THIS SUBTITLE. 6

(B) (1) THERE IS A RURAL MARYLAND CAPACITY BUILDING FUND. 7

(2) THE PURPOSE OF THE FUND IS TO SUPPORT CO LLABORATIVE 8
PLANNING AND CAPACIT Y BUILDING I NITIATIVES THAT ADDR ESS THE NEEDS OF 9
RURAL COMMUNITIES. 10

(3) THE COUNCIL SHALL ADMINISTER THE FUND. 11

(4) (I) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 12
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 13

(II) THE STATE TREASURER SHALL HOLD THE FUND 14
SEPARATELY, AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 15

(5) THE FUND CONSISTS OF: 16

(I) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 17
FUND; AND 18

(II) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 19
FOR THE BENEFIT OF THE FUND. 20

(6) THE FUND MAY BE USED ONLY FOR GRANTS PROVIDED UNDER 21
THIS SECTION. 22

(7) (I) THE STATE TREASURER SHALL INVEST THE MONEY OF THE 23
FUND IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 24

(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 25
CREDITED TO THE GENERAL FUND OF THE STATE. 26

(8) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 27
ACCORDANCE WITH THE STATE BUDGET. 28

SENATE BILL 300 7

(C) (1) THE BOARD SHALL: 1

(I) ESTABLISH PROCEDURES FOR APPLICATIONS FOR GRANTS 2
PROVIDED UNDER THIS SECTION; 3

(II) REVIEW APPLICATIONS FOR GRANTS; AND 4

(III) APPROVE GRANT RECIPI ENTS AND THE AMOUNT OF THE 5
GRANT AWARD. 6

(2) GRANTS MAY NOT BE AWA RDED TO ELIGIBLE APP LICANTS THAT 7
HAVE NOT COMPLETED THE RURAL READINESS PROGRAM ESTABLISHED UNDER § 8
13–416 OF THE ECONOMIC DEVELOPMENT ARTICLE. 9

(3) GRANTS SHALL BE AWARDED ON A COMPETITIVE BASIS. 10

(4) THE BOARD SHALL GIVE PRIO RITY TO ELIGIBLE APP LICANTS 11
THAT HAVE: 12

(I) MULTIJURISDICTIONAL AND MULTISECTOR PROJECTS; AND 13

(II) PROVIDED SUFFICIENT EVIDENCE OF A COMMITMENT TO A 14
FUNDING MATCH OF AT LEAST 20% OF THE GRANT AMOUNT. 15

(5) A GRANT AMOUNT MAY NOT EXCEED $50,000. 16

(D) ELIGIBLE APPLICANTS M UST APPLY FOR A GRAN T IN A MANNER 17
CONSISTENT WITH THE PROCEDURES ESTABLISHED BY THE BOARD. 18

(E) (1) GRANT FUNDS MAY BE USED TO SUPPORT: 19

(I) COLLABORATIVE PLANNI NG AND CAPACITY BUIL DING 20
INITIATIVES THAT ADV ANCE EFFORTS TO ADDR ESS THE NEEDS OF RUR AL 21
COMMUNITIES, INCLUDING: 22

1. HOUSING; 23

2. BROADBAND SERVICES; 24

3. PLACEMAKING; 25

4. ENERGY; 26

8 SENATE BILL 300

5. TRANSPORTATION; 1

6. HEALTH; 2

7. INFRASTRUCTURE; 3

8 ECONOMIC DEVELOPMENT; AND 4

9. WORKFORCE; 5

(II) READINESS FOR INVEST MENT IN AND DEVELOPM ENT OF A 6
RURAL COMMUNITY OR PROPERTY IN A RURAL COMMUNITY, INCLUDING: 7

1. DEVELOPMENT OF PROPERTY INVENTORIES; 8

2. SITE DEVELOPMENT STUDIES; 9

3. SITE MATERIAL DEVELOPMENT; 10

4. SITE IMPLEMENTATION OR LAND ASSEMBLY 11
ACTIVITIES; AND 12

5. FEASIBILITY OR MARKET STUDIES; 13

(III) PARTNERSHIPS AND PLA NNING TO BUILD READI NESS FOR 14
FUTURE PROJECTS AND COLLABORATIVE INITIATIVES; AND 15

(IV) CROSS–SECTOR COLLABORATION FOR COMMUNITY AND 16
STAKEHOLDER ENGAGEMENT THAT FOSTERS PLANNING AND DIALOGUE. 17

(2) GRANT FUNDS MAY NOT BE USED TO: 18

(I) PAY OR REIMBURSE THE GRANTEE FOR EMPLOYEE SALARY, 19
WAGES, BENEFITS, OR OTHER INDIRECT CO STS OF THE GRANTEE T HAT ARE NOT 20
RELATED TO THE PROJECT FOR WHICH A GRANT WAS AWARDED; 21

(II) FUND OPERATIONAL ACTIVITIES AT A FOR–PROFIT ENTITY; 22

(III) PURCHASE OR LEASE REAL PROPERTY; OR 23

(IV) SUPPORT A NONRURAL AREA. 24

SENATE BILL 300 9

(F) ON OR BEFORE OCTOBER 1 EACH YEAR, THE COUNCIL SHALL SUBMIT 1
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 2
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY A REPORT ON: 3

(1) THE NUMBER OF GRANTS MADE IN THE PREVIOUS FISCAL YEAR; 4

(2) THE NAME OF EACH GRANT RECIPIENT; AND 5

(3) THE PURPOSE AND USE OF EACH GRANT. 6

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
October 1, 2026. 8

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.