WeVote
Log In

Bill

Bill

SB 409

Hope Scholarship Board rule relating to Hope Scholarship Program

2025 Regular Session Introduced by Jack Woodrum

Broadens authority of county/municipal economic development authorities to own property, issue bonds, use TIF funds, finance development, housing, and public improvements.

Reported in Com. Sub. for S. B. 369
#legislature--rulemaking
0
WeVote Research Nonpartisan
Bill Summary · SB 409

Note: Multiple unrelated bills numbered "SB 409" appear in the provided materials. This summary covers SB 409 titled "Economic Development — County or Municipal Corporation Economic Development Authority — Powers and Use of Proceeds" (Maryland), introduced Jan. 20, 2025 (Sen. King), with a Ways & Means hearing scheduled 3/20/2025.

Main purpose

To broaden the legal authority, financing tools, and permissible uses of funds for economic development authorities created by counties or municipal corporations. The bill modernizes definitions, expands authority powers (including bond issuance and property transactions), clarifies project‑area planning, and widens eligible uses of tax increment financing (TIF) and bond proceeds to support development and public improvements.

Key provisions

  • Definitions
    • Expands the statutory definition of “authority” to include “revenue authority,” “redevelopment authority,” or other similarly named entities.
    • Adds or clarifies terms such as “authority funds,” “development,” “project area,” and “project area plan.”
  • Powers and activities
    • Explicitly authorizes an authority to own, hold, acquire (including by gift/grant/bequest), manage, lease, sell, pledge, or dispose of real and personal property.
    • Grants contracting powers, the ability to construct/rehabilitate/demolish/repair property, purchase insurance, sue and be sued, and establish land use covenants consistent with project plans.
    • Permits borrowing, accepting public/private/nonprofit funding, making loans, and paying development‑related fees or exactions.
    • Authority may acquire property outside a designated project area only if the board finds the acquisition benefits the project area and obtains prior approval from the creating county/municipality.
    • Requires authority funds to be kept separate from the creating jurisdiction’s funds and permits accumulation of retained earnings/fund balances.
  • Financing and bonds
    • Authorizes an authority to issue revenue bonds (including bond anticipation notes/commercial paper) in accordance with an ordinance adopted by the governing body that created the authority and other statutory requirements.
  • Expanded eligible uses of TIF and bond proceeds
    • Infrastructure installation and improvements to encourage development (including outside the district where shown to benefit the district).
    • Loans to encourage development; administrative and operating expenses; financing/refinancing of development costs; housing expenditures (inside and outside district); affordable housing and homeless assistance; incentives; land acquisition; publicly owned facilities; inter‑district loans; grants to offset tax increments; convention/visitor centers; and other purposes authorized by the bill.
  • Transparency and oversight
    • Authorities must prepare an annual report to the creating county/municipality detailing activities, property holdings, financial records, and any other requested information.
    • Counties/municipalities retain auditing and oversight jurisdiction over authorities created on or after Oct. 1, 2025 (per the fiscal note).

Who is affected

  • Counties and municipal corporations that create (or operate) economic development authorities.
  • Newly formed and existing authorities (revenue/redevelopment/other).
  • Local governments (oversight responsibilities), developers, property owners, housing and homeless service programs, and potentially small businesses that use authority programs or benefit from public improvements and incentives.

Fiscal, procedural, and timeline notes

  • Fiscal note (Maryland Dept. of Legislative Services): not expected to materially affect State finances; Department of Commerce can administer requirements with existing resources; local fiscal effects not expected to be material though small businesses may be meaningfully affected by new financing/tools.
  • Oversight jurisdiction and some changes apply to authorities created on or after Oct. 1, 2025 (per fiscal note).
  • Status at time of materials: Referred to Budget & Taxation; hearing listed before Ways & Means on 3/20/2025.

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

Sign in to ask a question.