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SENATE BILL 455
C8 6lr1422
CF HB 506
By: Senator Rosapepe
Introduced and read first time: February 2, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 6, 2026
CHAPTER ______
AN ACT concerning 1
Economic Development – Transformational Project Financing Program – 2
Establishment 3
FOR the purpose of establishing the Transformational Project Financing Program in the 4
Maryland Economic Development Corporation Department of Housing and 5
Community Development to designate certain development districts as 6
State–supported development districts; stating the purpose of the Program; 7
authorizing a governing body of a political subdivision to apply to the Corporation 8
Department for approval as a State –supported development district; providing for 9
the eligibility for and calculation of State revenue to be deposited into a certain fund 10
for certain purposes; providing for the authorized uses of certain bond proceeds in a 11
State–supported development district; requiring a governing body of a political 12
subdivision to pl edge certain funds to be paid to a certain account for a 13
State–supported development district; and generally relating to the 14
Transformational Project Financing Program. 15
BY repealing and reenacting, with amendments, 16
Article – Economic Development 17
Section 12–203(a) 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2025 Supplement) 20
BY adding to 21
Article – Economic Development 22
2 SENATE BILL 455
Section 12–203(d); and 12 –2A–01 through 12 –2A–08 to be under the new subtitle 1
“Subtitle 2A. Transformational Project Financing Program” 2
Annotated Code of Maryland 3
(2024 Replacement Volume and 2025 Supplement) 4
BY repealing and reenacting, with amendments, 5
The Charter of Baltimore City 6
Article II – General Powers 7
Section (62)(d) 8
(2007 Replacement Volume, as amended) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Economic Development 12
12–203. 13
(a) Before issuing bonds, the governing body of the political subdivision shall: 14
(1) by resolution: 15
(i) designate a contiguous area within its jurisdiction as a 16
development district; 17
(ii) identify an area that has been designated a sustainable 18
community; or 19
(iii) identify an area that has been designated a RISE zone; 20
(2) receive from the Supervisor of Assessments a certification of the 21
amount of the original base, or if applicable, the adjusted assessable base; and 22
(3) pledge that until the bonds are fully paid, or a longer period, the real 23
property taxes in the development district, a RISE zone, or a sustainable community shall 24
be divided as follows: 25
(i) the portion of the taxes that would be produced at the current tax 26
rate on the original taxable value base shall be paid to the respective taxing authorities in 27
the same manner as taxes on other property are paid; and 28
(ii) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, 29
the portion of the taxes on the tax increment that normally would be paid into the general 30
fund of the political subdivision shall be paid into the special fund established under § 31
12–208 of this subtitle and applied in accordance with § 12–209 of this subtitle. 32
SENATE BILL 455 3
(D) BEFORE ISSUING BONDS FOR A STATE–SUPPORTED DEVELOPMEN T 1
DISTRICT APPROVED UN DER SUBTITLE 2A OF THIS TITLE , THE GOVERNING BODY 2
OF THE POLITICAL SUBDIVISION SHALL, BY RESOLUTION, PLEDGE THAT UNTIL THE 3
BONDS ARE FULLY PAID, OR A LONGER PERIOD, THE REAL PROPERTY TAXES IN THE 4
STATE–SUPPORTED DEVELOPMENT DISTRICT SHALL BE DIVIDED AS FOLLOWS: 5
(1) THE PORTION OF THE TAXES THAT WOULD BE PRODUCED AT THE 6
CURRENT TAX RATE ON THE ORIGINAL TAXABLE VALUE BASE SHALL BE PAID TO THE 7
RESPECTIVE TAXING AU THORITIES IN THE SAM E MANNER AS TAXES ON OTHER 8
PROPERTY ARE PAID; AND 9
(2) THE PORTION OF THE T AXES ON THE TAX INCR EMENT THAT 10
NORMALLY WOULD BE PA ID INTO THE G ENERAL FUND OF THE P OLITICAL 11
SUBDIVISION SHALL BE PAID TO THE TRUSTEE OF THE PROJECT TRUST ACCOUNT 12
ESTABLISHED UNDER SUBTITLE 2A OF THIS TITLE. 13
SUBTITLE 2A. TRANSFORMATIONAL PROJECT FINANCING PROGRAM. 14
12–2A–01. 15
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17
(B) “CORPORATION” MEANS THE MARYLAND ECONOMIC DEVELOPMENT 18
CORPORATION “DEPARTMENT” MEANS THE DEPARTMENT OF HOUSING AND 19
COMMUNITY DEVELOPMENT. 20
(C) “DEVELOPMENT DISTRICT” HAS THE MEANING STATED IN § 12–201 OF 21
THIS TITLE OR ARTICLE II, § 62 OF THE CHARTER OF BALTIMORE CITY. 22
(D) “DISPLACEMENT ADJUSTME NT” MEANS THE ADJUSTMENT TO STATE 23
REVENUES UNDER § 12–2A–05 OF THIS SUBTITLE. 24
(E) “FUND” MEANS THE TRANSFORMATIONAL PROJECT FINANCING FUND. 25
(F) “PRIORITY AREA” INCLUDES: 26
(1) A SUSTAINABLE COMMUNITY DESIGNATED UNDER TITLE 6 OF THE 27
HOUSING AND COMMUNITY DEVELOPMENT ARTICLE; 28
(2) A TRANSIT –ORIENTED DEVELOPMENT , AS DEFINED UNDER § 29
7–101 OF THE TRANSPORTATION ARTICLE; 30
4 SENATE BILL 455
(3) AN ENTERPRISE ZONE DESIGNATED UNDER TITLE 5, SUBTITLE 7 1
OF THIS ARTICLE; 2
(4) AN ARTS AND ENTERTAI NMENT DISTRICT DESIG NATED UNDER 3
TITLE 4, SUBTITLE 7 OF THIS ARTICLE; 4
(5) A MAIN STREET MARYLAND COMMUNITY DE SIGNATED BY THE 5
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT; AND 6
(6) A PRIORITY FUNDI NG AREA DESIGNATED U NDER TITLE 5, 7
SUBTITLE 7B OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 8
(G) “PROGRAM” MEANS THE TRANSFORMATIONAL PROJECT FINANCING 9
PROGRAM. 10
(H) (1) “STATE REVENUE” MEANS THE REVENUE FROM: 11
(I) THE INCOME TAX IMPOSED BY THE STATE UNDER TITLE 10 12
OF THE TAX – GENERAL ARTICLE THAT IS ATTRIBUTABLE TO A STATE–SUPPORTED 13
DEVELOPMENT DISTRICT; 14
(II) THE SALES AND USE TA X IMPOSED BY THE STATE UNDER 15
TITLE 11 OF THE TAX – GENERAL ARTICLE THAT IS ATTRI BUTABLE TO THE 16
STATE–SUPPORTED DEVELOP MENT DISTRICT INCLUD ING THE SALES AND US E 17
ATTRIBUTABLE DURING THE CONSTRUCTION PER IOD OF A STATE–SUPPORTED 18
DEVELOPMENT DISTRICT; AND 19
(III) OTHER STATE TAXES DESIGNATED BY THE COMPTROLLER 20
AS ATTRIBUTABLE TO A STATE–SUPPORTED DEVELOPMENT DISTRICT. 21
(2) “STATE REVENUE ” DOES NOT INCLUDE STATE PROPERTY TAX 22
REVENUES. 23
(I) “STATE–SUPPORTED DEVELOPMEN T DISTRICT ” MEANS A 24
DEVELOPMENT DISTRICT THAT HAS A TRANSFORM ATIONAL PLAN AND HAS BEEN 25
APPROVED UNDER THIS SUBTITLE. 26
(J) “TRANSFORMATIONAL PLAN” MEANS AN IMPR OVEMENT PLAN FOR A 27
DEVELOPMENT DISTRICT THAT: 28
(1) IS OF A SCALE OR MIX OF USES THAT MAKES I T REASONABLY 29
LIKELY TO INCREASE THE POPULATION, EMPLOYMENT, OR COMMERCIAL ACTIVITY 30
IN THE AREA OF AND SURROUNDING THE DEVELOPMENT DISTRICT; 31
SENATE BILL 455 5
(2) REPRESENTS ANTICIPATED NEW ECONOMIC ACTIVITY WITH A NET 1
POSITIVE FISCAL IMPACT TO THE STATE AFTER A DISPLACEMENT ADJUSTMENT; 2
(3) IS NOT ECONOMICALLY VIABLE WITHOUT STATE PARTICIPATION; 3
AND 4
(4) INCLUDES IMPROVEMENT S OR SITE WORK THAT WILL BENEFIT 5
THE COMMUNITY. 6
12–2A–02. 7
(A) THERE IS A TRANSFORMATIONAL PROJECT FINANCING PROGRAM IN 8
THE STATE. 9
(B) THE CORPORATION DEPARTMENT SHALL ADMINISTER THE PROGRAM 10
AND EXERCISE ALL POWERS GRANTED UNDER THIS SUBTITLE. 11
(C) THE PURPOSE OF THE PROGRAM IS TO SUPPORT DEVELOPMENT 12
DISTRICTS ESTABLISHED UNDER SUBTITLE 2 OF THIS TITLE OR ARTICLE II, § 62 OF 13
THE CHARTER OF BALTIMORE CITY, FOR WHICH A GOVERNIN G BODY OF A 14
POLITICAL SUBDIVISION HAS APPROVED A TAX INCREMENT FINANCING PLAN AND 15
PLEDGED PROPERTY TAX REVENUES, BY PLEDGING N ET–NEW STATE REVENUES 16
ATTRIBUTABLE TO THE DEVELOPMENT DISTRICT TO SUPPORT THE 17
IMPLEMENTATION OF A TRANSFORMATIONAL PLAN. 18
12–2A–03. 19
(A) A GOVERNING BODY OF A POLITICAL SUBDIVISION MAY APPLY TO THE 20
CORPORATION DEPARTMENT FOR A DEVELOPMENT DISTRICT TO BE APPROVED AS 21
A STATE–SUPPORTED DEVELOPMENT DISTRICT IF: 22
(1) A DEVELOPMENT DISTRI CT HAS BEEN FORMED A ND A TAX 23
INCREMENT FINANCING PLAN HAS BEEN APPROV ED UNDER SUBTITLE 2 OF THIS 24
TITLE OR ARTICLE II, § 62 OF THE CHARTER OF BALTIMORE CITY BEFORE JULY 1, 25
2031 2035; 26
(2) THE GOVERNING BODY H AS PLEDGED LOCAL PRO PERTY TAX 27
REVENUES TO SUPPORT THE DEVELOPMENT DISTRICT; AND 28
(3) THE GOVERNING BODY H AS MADE A PRELIMINAR Y 29
DETERMINATION THAT T HE DEVELOPMENT DISTR ICT HAS A TRANSFORMA TIONAL 30
PLAN. 31
6 SENATE BILL 455
(B) (1) THE CORPORATION DEPARTMENT SHALL ESTABLISH: 1
(I) GUIDELINES FOR THE G OVERNING BODY OF A P OLITICAL 2
SUBDIVISION TO ASSES S WHETHER AN IMPROVE MENT PLAN MAY BE A 3
TRANSFORMATIONAL PLAN; AND 4
(II) AN APPLICATION SUBMI SSION, EVALUATION, AND 5
APPROVAL PROCESS. 6
(2) THE CORPORATION DEPARTMENT MAY CHARGE A REASONA BLE 7
APPLICATION FEE. 8
(C) (1) THE CORPORATION DEPARTMENT SHALL DETERMINE WHETHER 9
AN IMPROVEMENT PLAN FOR A DEVELOPMENT DISTRICT IS A TRANSFORMATIONAL 10
PLAN USING OBJECTIVE CRITERIA AND NOTIFY THE APPLICANT OF AN APPROVAL 11
DECISION WITHIN 90 DAYS AFTER THE COMPLETED APPLICATION. 12
(2) IN MAKING APPROVAL DE CISIONS, THE CORPORATION 13
DEPARTMENT SHALL RETAIN DOCUMENTATION SUPPORTING THE DECISION. 14
(3) IF AN APPLICATION IS DENIED, THE APPLICANT MAY APPEAL THE 15
DECISION WITHIN 60 DAYS. 16
(D) IN ONLY AFTER ACCOUNTING FOR THE NUMBER AND Q UALITY OF THE 17
APPLICATIONS RECEIV ED, IN ADMINISTERING APPROV ALS, THE CORPORATION 18
DEPARTMENT SHALL ENSURE THAT STATE–SUPPORTED DEVELOPMENT DISTRICTS 19
ARE APPROVED IN A MA NNER THAT PROVIDES M EANINGFUL PARTICIPAT ION BY 20
POLITICAL SUBDIVISIO NS OF VARIED POPULAT ION SIZE AND GEOGRAP HIC 21
LOCATION ACROSS THE STATE WHILE ACCOUNTING FOR THE NUMBER AND QUALITY 22
OF THE APPLICATIONS RECEIVED. 23
(E) THE CORPORATION DEPARTMENT SHALL PUBLISH , AT LEAST 24
ANNUALLY, A SUMMARY OF APPROVE D STATE–SUPPORTED DEVELOPMEN T 25
DISTRICTS BY POLITIC AL SUBDIVISION , LOCATION WITH IN A POLITICAL 26
SUBDIVISION, AND POPULATION SIZE. 27
(F) (1) FOR AN APPLICATION FO R A STATE–SUPPORTED DEVELOPMENT 28
DISTRICT THAT IS ABO VE AN AMOUNT ESTABLI SHED BY THE CORPORATION 29
DEPARTMENT, A REPORT SHALL BE PREPARED BY AN INDEPENDENT THIRD–PARTY 30
CONSULTANT THAT IS ACCEPTABLE TO THE CORPORATION DEPARTMENT. 31
(2) THE REPORT SHALL: 32
SENATE BILL 455 7
(I) QUANTIFY PROJECTED STATE REVENUES ATTRIB UTABLE 1
TO THE TRANSFORMATIONAL PLAN; 2
(II) APPLY THE DISPLACEME NT ADJUSTMENTS REQUI RED 3
UNDER § 12–2A–05 OF THIS SUBTITLE; AND 4
(III) DEMONSTRATE A POSITI VE NET FISCAL BENEFI T TO THE 5
STATE OVER THE PROPOSED CAPTURE PERIOD. 6
(3) THE CORPORATION DEPARTMENT MAY NOT APPROVE A 7
STATE–SUPPORTED DEVELOPMEN T DISTRICT UNLESS TH E REPORT 8
DEMONSTRATES A POSITIVE NET FISCAL BENEFIT TO THE STATE. 9
(G) A TRANSFER OF THE TRAN SFORMATIONAL PLAN , ASSIGNMENT OF 10
RIGHTS, OR CHANGE OF CONTROL OF A DEVELOPER OR OT HER OBLIGATED PARTY 11
REQUIRES THE PRIOR W RITTEN CONSENT OF TH E CORPORATION DEPARTMENT, 12
EVIDENCE OF EQUAL OR GREATER FINANCIAL CAPACITY OF THE TRANSFEREE, AND 13
AN ASSUMPTION AGREEMENT ACCEPTABLE TO THE CORPORATION DEPARTMENT. 14
(H) THE CORPORATION DEPARTMENT MAY APPROVE LENDER S TEP–IN 15
RIGHTS AND RELATED REMEDIES CONSISTENT WITH GUIDELINES ADOPTED BY THE 16
CORPORATION DEPARTMENT. 17
12–2A–04. 18
(A) (1) A STATE–SUPPORTED DEVELOPMENT DISTRICT IS ELIGIBLE FOR 19
AN ANNUAL DISBURSEMENT OF NET–NEW STATE REVENUE ATTRIBUTABLE TO THE 20
STATE–SUPPORTED DEVELOPMENT DISTRICT TO BE DEPOSITED IN THE FUND FOR 21
THE LIFE OF THE BONDS, NOT TO EXCEED 30 YEARS AFTER THE STATE–SUPPORTED 22
DEVELOPMENT DISTRICT IS COMPLETED. 23
(2) (I) FOR EACH FISCAL YEAR , THE COMPTROLLER SHALL 24
CERTIFY THE AMOUNT O F NET –NEW STATE REVENUE ATTRIBU TABLE TO EACH 25
STATE–SUPPORTED DEVELOPMEN T DISTRIC T IN ACCORDANCE WITH THIS 26
SUBTITLE. 27
(II) WITHIN 14 DAYS AFTER CERTIFICA TION, THE 28
COMPTROLLER SHALL: 29
1. DISTRIBUTE THE PORTI ON OF THE CERTIFIED 30
AMOUNT NECESSARY TO ADMINISTER THIS SUBTITLE TO AN ADMINISTRATIVE COST 31
ACCOUNT; AND 32
8 SENATE BILL 455
2. TRANSFER THE REMAINDER OF THE CERTIFIED 1
AMOUNT TO THE FUND FOR DISBURSEMENT TO THE TRUSTEE OF TH E PROJECT 2
TRUST ACCOUNT FOR A STATE–FUNDED DEVELOPMENT DISTRICT. 3
(III) THE CORPORATION DEPARTMENT SHALL NOTIFY THE 4
COMPTROLLER OF EACH A PPROVED STATE–SUPPORTED DEVELOPMENT DISTRICT 5
AND PROVIDE ANY INFO RMATION REASONABLY REQUIRED BY THE COMPTROLLER 6
TO CERTIFY AND TRANSFER REVENUE UNDER THIS PARAGRAPH. 7
(IV) THE CORPORATION DEPARTMENT SHALL TRANSFER 8
FUNDS FROM THE FUND TO THE TRUSTEE –HELD PROJECT TRUST A CCOUNT FOR A 9
STATE–SUPPORTED DEVELOPMENT DISTRICT. 10
(B) STATE REVENUES DISBURSED UNDER THIS SECTION SHALL BE LIMITED 11
TO NET –NEW STATE REVENUES ATTRIB UTABLE TO THE STATE–SUPPORTED 12
DEVELOPMENT DISTRICT AND MAY NOT CONSTITUTE A PLEDGE OF FULL FAITH AND 13
CREDIT OF THE STATE. 14
(C) THE FUNDS IN A TRUSTE E–HELD PROJECT TRUST A CCOUNT FOR A 15
STATE–SUPPORTED DEVELOPMEN T DISTRICT SHALL BE APPLIED IN THE 16
FOLLOWING ORDER OF PRIORITY: 17
(1) PAYMENT OF DEBT SERVICE ON BONDS OR NOTES ISSUED FOR THE 18
STATE–SUPPORTED DEVELOPMENT DISTRICT; 19
(2) RESERVE REPLENISHMENT; AND 20
(3) REIMBURSEMENT OF APP ROVED COSTS AS PROVI DED IN THE 21
TRANSFORMATIONAL PLAN FOR THE STATE–SUPPORTED DEVELOPMENT DISTRICT. 22
12–2A–05. 23
(A) THE PURPOSE OF THE DI SPLACEMENT ADJUSTMEN TS UNDER THIS 24
SECTION IS TO ACCOUNT FOR THE LIKE LIHOOD THAT A PORTIO N OF STATE 25
REVENUES ATTRIBUTABL E TO ENTITIES LOCATE D IN A STATE–SUPPORTED 26
DEVELOPMENT DISTRICT WOULD HAVE BEEN GENE RATED ELSEWHERE IN T HE 27
STATE IN THE ABSENCE OF A TRANSFORMATIONAL PLAN. 28
(B) (1) TO DETERMINE NET –NEW STATE REVENUE FOR A 29
TRANSFORMATIONAL PLA N, MINIMUM DISPLACEMENT ADJUSTMENTS SHALL BE 30
APPLIED TO GROSS REV ENUE ATTRIBUTABLE TO A STATE–SUPPORTED 31
DEVELOPMENT DISTRICT IN ACCORDANCE WITH THIS SUBSECTION. 32
SENATE BILL 455 9
(2) EXCEPT AS PROVIDED UNDER SUBSECTIONS (C) AND (D) OF THIS 1
SECTION, PROJECTED INCREASES IN STATE REVENUES ATTRIB UTABLE TO A 2
STATE–SUPPORTED DEVELOPMEN T DISTRICT SHALL BE REDUCED BY THE 3
FOLLOWING MINIMUM DISPLACEMENT ADJUSTMENT: 4
(I) FOR RETAIL AND RESTAURANTS, 60%; 5
(II) FOR OFFICE SPACE, 25%; 6
(III) FOR INDUSTRIAL , LOGISTICS, MANUFACTURING, AND 7
OTHER PRODUCTION SPACES, 10%; AND 8
(IV) FOR TOURISM AND VISITOR–SERVING USES, 15%. 9
(C) (1) AT LEAST EVERY 2 YEARS, THE COMPTROLLER SHALL EVALUATE 10
THE DISPLACEMENT ADJUSTMENT PERCENTAGES USED IN SUBSECTION (B) OF THIS 11
SECTION. 12
(2) BASED ON MARKET CONDI TIONS, EMPIRICAL DATA , AND 13
SECTOR–SPECIFIC ANALYSIS , THE COMPTROLLER MAY USE D IFFERENT 14
PERCENTAGES THAN THO SE UNDER SUBSECTION (B) OF THIS SECTION TO 15
ACCURATELY REFLECT T HE PORTION OF STATE REVEN UES THAT REPRESENTS 16
NET–NEW ECONOMIC ACTIVITY. 17
(D) A DISPLACEMENT ADJUSTM ENT MAY NOT BE APPLI ED TO STATE 18
REVENUES ATTRIBUTABLE TO: 19
(1) AFFORDABLE HOUSING COMPONENTS OF A TRANS FORMATIONAL 20
PLAN; OR 21
(2) PORTIONS OF A STATE–SUPPORTED DEVELOPMEN T DISTRICT 22
THAT ARE LOCATED IN A PRIORITY AREA. 23
(E) STATE REVENUE DISTRIB UTED FOR A STATE–SUPPORTED 24
DEVELOPMENT DISTRICT MAY NOT EXCEED THE N ET–NEW STATE REVENUE 25
ATTRIBUTABLE TO THE DISTRICT AFTER APPLI CATION OF THE DISPLA CEMENT 26
ADJUSTMENTS UNDER THIS SECTION. 27
12–2A–06. 28
(A) IN ADDITION TO THE USES ALLOWED UNDER SUBTITLE 2 OF THIS TITLE 29
OR ARTICLE II, § 62 OF THE CHARTER OF BALTIMORE CITY, TO THE EXTENT THAT 30
10 SENATE BILL 455
THE CORPORATION DEPARTMENT DETERMINES THE COSTS ARE NECESSARY FOR 1
THE ECONOMIC VIABILI TY OF THE TR ANSFORMATIONAL PLAN , BOND PROCEEDS 2
FOR A STATE–SUPPORTED DEVELOPMEN T DISTRICT MAY BE US ED FOR 3
CONSTRUCTION, REHABILITATION, OR EXPANSION OF PRIV ATELY OWNED 4
BUILDINGS AND RELATED BUILDING IMPROVEMENTS. 5
(B) (1) REVENUES EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 6
SUBSECTION, REVENUES AND RESERVES FOR A STATE–SUPPORTED DEVELOPMENT 7
DISTRICT MAY NOT BE USED FOR: 8
(1) (I) ANY OTHER STATE–SUPPORTED DEVELOPMEN T DISTRICT 9
OR TRANSFORMATIONAL PLAN; OR 10
(2) (II) CROSS–COLLATERALIZATION AMONG TRANSFORMATIONAL 11
PLANS. 12
(2) THE RESTRICTIONS UNDER PARAGRAPH (1) OF THIS SUBSECTION 13
DO NOT APPLY TO A DE VELOPMENT DISTRICT T HAT IS CONTIGUOUS TO A 14
STATE–SUPPORTED DEVELOPMENT DISTRICT. 15
12–2A–07. 16
(A) THERE IS A TRANSFORMATIONAL PROJECT FINANCING FUND. 17
(B) THE PURPOSE OF THE FUND IS TO RECEIVE CERTIFIED NET–NEW STATE 18
REVENUES ATTRIBUTABLE TO A STATE–SUPPORTED DEVELOPMENT DISTRICT. 19
(C) THE CORPORATION DEPARTMENT SHALL ADMINISTER THE FUND. 20
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 21
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 22
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 23
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 24
(E) THE FUND CONSISTS OF: 25
(1) REVENUE DISTRIBUTED TO THE FUND UNDER THIS SUBTITLE; 26
(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; AND 27
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 28
THE BENEFIT OF THE FUND. 29
SENATE BILL 455 11
(F) THE FUND MAY BE USED ONLY FOR DISBURSEMENTS TO A 1
TRUSTEE–HELD PROJECT TRUST A CCOUNT FOR A STATE–SUPPORTED 2
DEVELOPMENT DISTRICT TO BE USED IN ACCORDANCE WITH § 12–2A–04(C) OF THIS 3
SUBTITLE. 4
(G) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 5
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 6
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 7
THE GENERAL FUND OF THE STATE. 8
12–2A–08. 9
(A) THE EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , THE 10
CORPORATION DEPARTMENT SHALL ADOPT REGULATI ONS NECESSARY TO CAR RY 11
OUT THIS SUBTITLE. 12
(B) THE COMPTROLLER SHALL ADOPT REGULATIONS FOR: 13
(1) THE METHODOLOGY USED TO DERIVE THE DISPLA CEMENT 14
ADJUSTMENT PERCENTAGES UNDER THIS SUBTITLE; AND 15
(2) THE DISPLACEMENT ADJ USTMENT PERCENTAGES , INCLUDING 16
REVISED PERCENTAGES, THAT WILL BE APPLIED UNDER THIS SUBTITLE. 17
The Charter of Baltimore City 18
Article II – General Powers 19
The Mayor and City Council of Baltimore shall have full power and authority to 20
exercise all of the powers heretofore or hereafter granted to it by the Constitution of 21
Maryland or by any Public General or Public Local Laws of the Stat e of Maryland; and in 22
particular, without limitation upon the foregoing, shall have power by ordinance, or such 23
other method as may be provided for in its Charter, subject to the provisions of said 24
Constitution and Public General Laws: 25
(62) 26
(d) (1) Before issuing any bonds under this section, the Mayor and City 27
Council of Baltimore shall: 28
[(1)] (I) designate by ordinance an area or areas within the City of 29
Baltimore as a “development district”; 30
12 SENATE BILL 455
[(2)] (II) receive from the Supervisor of Assessments a certification as to 1
the amount of the original assessable base, or if applicable, the adjusted assessable base; 2
and 3
[(3)] (III) provide that until bonds have been fully paid or thereafter, the 4
property taxes on real property within the development district shall be divided as follows: 5
[(i)] 1. the portion of the taxes which would be produced by the 6
rate at which taxes levied each year by the Mayor and City Council of Baltimore upon the 7
original taxable value shall be allocated to and when collected paid into the funds of the 8
Mayor and City Council of Baltimore in the same manner as taxes by the Mayor and City 9
Council of Baltimore on all other property are paid; and 10
[(ii)] 2. EXCEPT AS PROVIDED U NDER PARAGRAPH (2) OF 11
THIS SUBSECTION, that portion of the taxes representing the levy on the tax increment 12
that would normally be paid to the Mayor and City Council of Baltimore shall be paid into 13
a special fund to be applied in accordance with the provisions of subsection (e) of this 14
section. This yield shall not be considered as municipal taxes for the purposes of any 15
constant yield tax limitation or State or local restriction. No State real property taxes may 16
be paid into the special fund. 17
(2) BEFORE ISSUING BONDS FOR A STATE–SUPPORTED 18
DEVELOPMENT DI STRICT APPROVED UNDE R TITLE 12, SUBTITLE 2A OF THE 19
ECONOMIC DEVELOPMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND, 20
THE MAYOR AND CITY COUNCIL OF BALTIMORE SHALL, BY RESOLUTION, PLEDGE 21
THAT UNTIL THE BONDS ARE FULLY PAID , OR A LONGER PERIOD , THE REAL 22
PROPERTY TAXES IN THE STATE–SUPPORTED DEVELOPMENT DISTRICT SHALL BE 23
DIVIDED AS FOLLOWS: 24
(I) THE PORTION OF THE TAXES THAT WOULD BE PRODUCED BY 25
THE RATE AT WHICH TAXES LEVIED EACH YEAR BY THE MAYOR AND CITY COUNCIL 26
OF BALTIMORE UPON THE ORIGINAL TAXABLE VALUE SHALL BE ALLOCATED TO AND 27
WHEN COLLECTED PAID INTO THE FUNDS OF TH E MAYOR AND CITY COUNCIL OF 28
BALTIMORE IN THE SAME MANNER AS TAXES BY THE MAYOR AND CITY COUNCIL OF 29
BALTIMORE ON ALL OTHER PROPERTY ARE PAID; AND 30
(II) THAT PORTION OF TAXES REPRESENTING THE LEVY ON THE 31
TAX INCREMENT THAT W OULD NORMALLY BE PAI D TO THE MAYOR AND CITY 32
COUNCIL OF BALTIMORE SHALL BE PAID TO THE TRUSTEE OF THE PROJECT TRUST 33
ACCOUNT ESTABLISHED UNDER TITLE 12, SUBTITLE 2A OF THE ECONOMIC 34
DEVELOPMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND. 35
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 36
October 1, 2026 July 1, 2027. 37