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SB 365

Department of Commerce – Nonprofit Organizations Navigator – Established

2025 Regular Session Introduced by Cheryl Kagan and 2 co-sponsors

Creates a Nonprofit Organizations Navigator in the Maryland Department of Commerce to help nonprofits access state grants and reduce procedural barriers.

Approved by the Governor - Chapter 314
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Bill Summary · SB 365

SB 365 — Department of Commerce – Nonprofit Organizations Navigator (Chapter 314, 2025)

Status: Approved by the Governor (Chapter 314). Signed: 2025-05-06. Effective: immediately (emergency bill). Termination of navigator provisions: June 30, 2027.

Main purpose

Establish a nonprofit organizations navigator position in the Maryland Department of Commerce to help nonprofit organizations access and apply for State grant programs, resolve grant‑making procedural barriers, and represent nonprofit interests on the Maryland Efficient Grant Application (MEGA) Council.

Key provisions

  • Creates a Nonprofit Organizations Navigator in the Department of Commerce. The Secretary of Commerce designates the navigator.
  • Required navigator duties:
    • Provide technical assistance to nonprofit organizations seeking access to and applying for State grant programs.
    • Work with nonprofits and State agencies to resolve procedural complexities and delays in State grant processes.
    • Collect and share information about federal, State, and local grant opportunities with nonprofits.
    • Represent nonprofit organizations’ interests as a (nonvoting) member of the MEGA Council.
  • Limits on services: the navigator may not provide services to any nonprofit that pays more than $250,000 in total annual compensation to a single salaried employee.
  • Alters the composition and duties of the MEGA Council to include the navigator as a nonvoting member and adjusts the Council’s membership language and duties.
  • Repeals some previously required MEGA Council studies and reporting related to a proposed State Grants Ombudsperson and replaces them with the navigator role and a new one‑time reporting requirement.

Reporting and data collection

  • Commerce must collect sufficient information from assisted nonprofits to support a report due January 1, 2027 (per fiscal note and bill language). The report for fiscal 2026 must include:
    • Number of nonprofits receiving technical assistance.
    • Number of grant applications completed and submitted as a result of the assistance.
    • Total grant funds awarded to nonprofits that resulted from navigator assistance.
    • Findings and recommendations on implementing the navigator position.
  • The MEGA Council’s duties to advise and monitor State progress on grants management are retained and adjusted.

Fiscal impact (per Department of Legislative Services)

  • Estimated General Fund cost for Commerce:
    • FY 2026: ~$80,428 (one contractual navigator; salary $72,783 + $7,645 operating/start‑up).
    • FY 2027: ~$69,800 (continued contractual costs).
  • FY 2026 budget included $80,400 for the position. No revenue impact anticipated.
  • Assumption: navigator is contractual given the limited duration of the authorization.

Who is affected

  • Primary: Maryland nonprofit organizations (especially small and mid‑sized organizations seeking State grants).
  • State agencies involved in grant administration, MEGA Council members, and the Department of Commerce.
  • Larger nonprofits with a single salaried employee earning > $250,000 are excluded from navigator services.

Timeline / implementation

  • Emergency effective date on signature (May 6, 2025).
  • The General Assembly’s intent (per fiscal note) is that the navigator position be filled by July 1, 2025.
  • Navigator provisions terminate June 30, 2027 (bill is authorizing a time‑limited position and duties).

Compiled from official sources — confirm details with the bill’s official record.

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