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Maryland General Assembly· HB0135Approved by the Governor - Chapter 536 (Chapter 536)

Economic Development - Tax Increment Financing - Noncontiguous Areas, the official text

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WES MOORE, Governor                      Ch. 536

Chapter 536

                   (House Bill 135)

AN ACT concerning

Economic Development – Tax Increment Financing – Noncontiguous Areas

FOR the purpose of authorizing the governing body of a political subdivision to designate
         certain noncontiguous areas as development districts; and generally relating to tax
         increment financing for noncontiguous areas.

BY renumbering
         Article – Economic Development
         Section 12–201(e) through (u)
         to be Section 12–201(f) through (v), respectively
         Annotated Code of Maryland
         (2024 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, without amendments,
         Article – Economic Development
         Section 12–201(a)
         Annotated Code of Maryland
         (2024 Replacement Volume and 2025 Supplement)

BY adding to
         Article – Economic Development
         Section 12–201(e)
         Annotated Code of Maryland
         (2024 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, with amendments,
         Article – Economic Development
         Section 12–201(i)
         Annotated Code of Maryland
         (2024 Replacement Volume and 2025 Supplement)
         (As enacted by Section 1 of this Act)

BY repealing and reenacting, with amendments,
         Article – Economic Development
         Section 12–202 and 12–203(a)(1)
         Annotated Code of Maryland
         (2024 Replacement Volume and 2025 Supplement)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That Section(s) 12–201(e) through (u) of Article – Economic Development of the Annotated
Code of Maryland be renumbered to be Section(s) 12–201(f) through (v), respectively.

                                                           –1–
Ch. 536                         2026 LAWS OF MARYLAND

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

                                Article – Economic Development

12–201.

(a) In this subtitle the following words have the meanings indicated.

        (E) “BLIGHTED AREA” MEANS AN AREA IN WHICH A MAJORITY OF
BUILDINGS HAVE DECLINED IN PRODUCTIVITY BY REASON OF OBSOLESCENCE,
DEPRECIATION, OR OTHER CAUSES TO AN EXTENT THAT THEY NO LONGER JUSTIFY
FUNDAMENTAL REPAIRS AND ADEQUATE MAINTENANCE.

         (i) (1) “Development district” means a contiguous OR NONCONTIGUOUS area
designated by a resolution.

         (2) “Development district” includes an extraordinary development district.

12–202.

(a) (1) This subtitle is self–executing.

                  (2) A political subdivision need not amend its charter to exercise the
powers granted by this subtitle.

        (b) (1) [This] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, THIS subtitle does not apply in Baltimore City.

                (2) THE PROVISIONS OF § 12–203(A)(1)(II) OF THIS SUBTITLE
PERTAINING TO NONCONTIGUOUS BLIGHTED AREAS APPLY IN BALTIMORE CITY.

12–203.

(a) Before issuing bonds, the governing body of the political subdivision shall:

         (1) by resolution:

                           (i)  designate a contiguous area within its jurisdiction as a
development district;

                           (ii) DESIGNATE A NONCONTIGUOUS BLIGHTED AREA WITHIN
ITS JURISDICTION AS A DEVELOPMENT DISTRICT;

                                –2–
               WES MOORE, Governor       Ch. 536

               (III) identify an area that has been designated a sustainable

community; or

               [(iii)] (IV) identify an area that has been designated a RISE zone;

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

Approved by the Governor, May 12, 2026.

               –3–
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