Shown verbatim: the complete text as captured from the official PDF posted by the Maryland General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
WES MOORE, Governor Ch. 543
Chapter 543
(House Bill 461)
AN ACT concerning
Economic Development – Rural Readiness Program and Rural Maryland
Capacity Building Fund – Establishment
FOR the purpose of establishing the Rural Readiness Program administered by the Rural
Maryland Council to provide assistance to rural communities to enhance their
capacity for economic development; requiring priority to be given when making
certain grants to entities that have completed the Rural Readiness Program;
establishing the Rural Maryland Capacity Building Fund as a special, nonlapsing
fund to be administered by the Council to provide grants to support certain planning
and capacity building initiatives; and generally relating to rural communities.
BY renumbering
Article – Economic Development
Section 13–416
to be Section 13–417
Annotated Code of Maryland
(2024 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
Article – Economic Development
Section 13–401
Annotated Code of Maryland
(2024 Replacement Volume and 2025 Supplement)
BY adding to
Article – Economic Development
Section 13–416
Annotated Code of Maryland
(2024 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 2–206(e)(1) and 2–207(c)(1) and (g)(2)(i)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 2–206(e)(5)
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
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Ch. 543 2026 LAWS OF MARYLAND
BY adding to
Article – State Finance and Procurement
Section 2–207.1
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That Section(s) 13–416 of Article – Economic Development of the Annotated Code of
Maryland be renumbered to be Section(s) 13–417.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Economic Development
13–401.
In this subtitle, “Council” means the Rural Maryland Council.
13–416.
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) (I) “ELIGIBLE APPLICANT” MEANS:
1. A NONPROFIT ORGANIZATION;
2. A UNIT OF LOCAL GOVERNMENT;
3. A STATE–RECOGNIZED TRIBE;
4. AN INSTITUTION OF HIGHER EDUCATION IN THE
STATE;
5. A REGIONAL PLANNING AGENCY; OR
6. AN ECONOMIC OR WORKFORCE DEVELOPMENT
ORGANIZATION.
(II) “ELIGIBLE APPLICANT” DOES NOT INCLUDE STATE
GOVERNMENTAL ENTITIES.
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WES MOORE, Governor Ch. 543
(3) “PROGRAM” MEANS THE RURAL READINESS PROGRAM.
(4) “RURAL COMMUNITY” HAS THE MEANING STATED IN § 2–207 OF
THE STATE FINANCE AND PROCUREMENT ARTICLE.
(B) THE GENERAL ASSEMBLY FINDS THAT:
(1) RURAL COMMUNITIES ARE OFTEN DISADVANTAGED WHEN
COMPETING FOR FINANCIAL AND OTHER RESOURCES DUE TO:
(I) A LACK OF CAPACITY AND POPULATION DENSITY
RESULTING IN LIMITED RESOURCES DUE TO A SMALLER TAX BASE; AND
(II) LIMITED ACCESS TO CRITICAL INFRASTRUCTURE,
INCLUDING BROADBAND AND TRANSPORTATION;
(2) A DEFICIENCY EXISTS IN THE ESSENTIAL ELEMENTS NEEDED FOR
RURAL COMMUNITIES TO THRIVE AND ADDRESS THE NEEDS OF THE RURAL
COMMUNITY;
(3) RURAL COMMUNITIES STRUGGLE TO RECRUIT AND RETAIN
SKILLED STAFF NEEDED TO IMPLEMENT AND MANAGE PROJECTS PARTICULARLY IN
TECHNICAL SUPPORT FOR ECONOMIC AND COMMUNITY DEVELOPMENT;
(4) RURAL COMMUNITIES EXPERIENCE CHALLENGES IN SOCIAL
COHESION AND NETWORKS THAT MAKE IT HARD TO MOBILIZE RESOURCES AND
COLLECTIVELY ADDRESS ISSUES;
(5) THE POPULATION OF RURAL COMMUNITIES IS LIKELY TO BE
OLDER, POORER, AND SICKER DUE TO AGE AND AN OUTMIGRATION OF YOUNGER
PEOPLE; AND
(6) NOT ADDRESSING THE CHALLENGES OF RURAL COMMUNITIES
WILL MANIFEST AS DISPARITIES IN HEALTH CARE ACCESS, EDUCATIONAL
ATTAINMENT, ECONOMIC OPPORTUNITIES, AND INFRASTRUCTURE DEVELOPMENT.
(C) THERE IS A RURAL READINESS PROGRAM ADMINISTERED BY THE
COUNCIL.
(D) (1) THE PURPOSE OF THE PROGRAM IS TO ENHANCE THE CAPACITY
IN RURAL COMMUNITIES FOR ECONOMIC DEVELOPMENT BY ASSISTING ELIGIBLE
APPLICANTS ACCEPTED INTO THE PROGRAM WITH GRANT APPLICATIONS AND
DEVELOPING PROJECTS THAT GENERATE REVENUE.
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Ch. 543 2026 LAWS OF MARYLAND
(2) THE COUNCIL SHALL ESTABLISH ASSESSMENTS, TOOLKITS, AND
OTHER RESOURCES TO SUPPORT THE PURPOSE OF THE PROGRAM.
(E) (1) ELIGIBLE APPLICANTS MAY APPLY TO THE COUNCIL TO
PARTICIPATE IN THE PROGRAM.
(2) THE COUNCIL’S EXECUTIVE BOARD SHALL ESTABLISH:
(I) CRITERIA TO EVALUATE ELIGIBLE APPLICANTS FOR
ACCEPTANCE INTO THE PROGRAM; AND
(II) PARTICIPATION GUIDELINES.
(F) (1) THE COUNCIL’S EXECUTIVE DIRECTOR SHALL CERTIFY THE
ELIGIBLE APPLICANTS THAT HAVE SUCCESSFULLY COMPLETED THE PROGRAM.
(2) ELIGIBLE APPLICANTS THAT HAVE RECEIVED A COMPLETION
CERTIFICATE SHALL BE GIVEN PRIORITY FOR THE FOLLOWING GRANT PROGRAMS:
(I) THE MARYLAND AGRICULTURAL EDUCATION AND RURAL
DEVELOPMENT ASSISTANCE FUND ESTABLISHED UNDER § 2–206 OF THE STATE
FINANCE AND PROCUREMENT ARTICLE;
(II) THE RURAL MARYLAND PROSPERITY INVESTMENT FUND
ESTABLISHED UNDER § 2–207 OF THE STATE FINANCE AND PROCUREMENT
ARTICLE; AND
(III) THE RURAL MARYLAND CAPACITY BUILDING FUND
ESTABLISHED UNDER § 2–207.1 OF THE STATE FINANCE AND PROCUREMENT
ARTICLE.
Article – State Finance and Procurement
2–206.
(e) (1) There is a Maryland Agricultural Education and Rural Development
Assistance Board.
(5) The Board shall give funding priority to organizations described in
subsection (c)(2)(i) of this section that have:
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WES MOORE, Governor Ch. 543
(i) obtained an equal matching amount of funding from a source
other than the State in the immediate prior fiscal year; [or]
(ii) sufficient evidence of a commitment of a third party funding
source to provide an equal matching amount of funding in the current fiscal year; OR
(III) RECEIVED A COMPLETION CERTIFICATE UNDER § 13–416
OF THE ECONOMIC DEVELOPMENT ARTICLE.
2–207.
(c) (1) There is a Rural Maryland Prosperity Investment Fund.
(g) (2) (i) Subject to subparagraph (ii) of this paragraph, the Board shall
award grants from the Fund under subsection (f)(1)(ii) of this section on a competitive basis
in accordance with the procedures in § 2–206(e) of this subtitle.
2–207.1.
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “BOARD” MEANS THE MARYLAND AGRICULTURAL EDUCATION
AND RURAL DEVELOPMENT ASSISTANCE BOARD ESTABLISHED IN § 2–206 OF THIS
SUBTITLE.
(3) “COUNCIL” MEANS THE RURAL MARYLAND COUNCIL
ESTABLISHED UNDER TITLE 13, SUBTITLE 4 OF THE ECONOMIC DEVELOPMENT
ARTICLE.
(4) “ELIGIBLE APPLICANT” HAS THE MEANING STATED IN § 13–416
OF THE ECONOMIC DEVELOPMENT ARTICLE.
(5) “FUND” MEANS THE RURAL MARYLAND CAPACITY BUILDING
FUND.
(6) “RURAL COMMUNITY” HAS THE MEANING STATED IN § 2–207 OF
THIS SUBTITLE.
(B) (1) THERE IS A RURAL MARYLAND CAPACITY BUILDING FUND.
(2) THE PURPOSE OF THE FUND IS TO SUPPORT COLLABORATIVE
PLANNING AND CAPACITY BUILDING INITIATIVES THAT ADDRESS THE NEEDS OF
RURAL COMMUNITIES.
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Ch. 543 2026 LAWS OF MARYLAND
(3) THE COUNCIL SHALL ADMINISTER THE FUND.
(4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
(II) THE STATE TREASURER SHALL HOLD THE FUND
SEPARATELY, AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND.
(5) THE FUND CONSISTS OF:
(I) MONEY APPROPRIATED IN THE STATE BUDGET TO THE
FUND; AND
(II) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED
FOR THE BENEFIT OF THE FUND.
(6) THE FUND MAY BE USED ONLY FOR GRANTS PROVIDED UNDER
THIS SECTION.
(7) (I) THE STATE TREASURER SHALL INVEST THE MONEY OF THE
FUND IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED.
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE
CREDITED TO THE GENERAL FUND OF THE STATE.
(8) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN
ACCORDANCE WITH THE STATE BUDGET.
(C) (1) THE BOARD SHALL:
(I) ESTABLISH PROCEDURES FOR APPLICATIONS FOR GRANTS
PROVIDED UNDER THIS SECTION;
(II) REVIEW APPLICATIONS FOR GRANTS; AND
(III) APPROVE GRANT RECIPIENTS AND THE AMOUNT OF THE
GRANT AWARD.
(2) GRANTS MAY NOT BE AWARDED TO ELIGIBLE APPLICANTS THAT
HAVE NOT COMPLETED THE RURAL READINESS PROGRAM ESTABLISHED UNDER §
13–416 OF THE ECONOMIC DEVELOPMENT ARTICLE.
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WES MOORE, Governor Ch. 543
(3) GRANTS SHALL BE AWARDED ON A COMPETITIVE BASIS.
(4) THE BOARD SHALL GIVE PRIORITY TO ELIGIBLE APPLICANTS
THAT HAVE:
(I) MULTIJURISDICTIONAL AND MULTISECTOR PROJECTS; AND
(II) PROVIDED SUFFICIENT EVIDENCE OF A COMMITMENT TO A
FUNDING MATCH OF AT LEAST 20% OF THE GRANT AMOUNT.
(5) A GRANT AMOUNT MAY NOT EXCEED $50,000.
(D) ELIGIBLE APPLICANTS MUST APPLY FOR A GRANT IN A MANNER
CONSISTENT WITH THE PROCEDURES ESTABLISHED BY THE BOARD.
(E) (1) GRANT FUNDS MAY BE USED TO SUPPORT:
(I) COLLABORATIVE PLANNING AND CAPACITY BUILDING
INITIATIVES THAT ADVANCE EFFORTS TO ADDRESS THE NEEDS OF RURAL
COMMUNITIES, INCLUDING:
1. HOUSING;
2. BROADBAND SERVICES;
3. PLACEMAKING;
4. ENERGY;
5. TRANSPORTATION;
6. HEALTH;
7. INFRASTRUCTURE;
8 ECONOMIC DEVELOPMENT; AND
9. WORKFORCE;
(II) READINESS FOR INVESTMENT IN AND DEVELOPMENT OF A
RURAL COMMUNITY OR PROPERTY IN A RURAL COMMUNITY, INCLUDING:
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Ch. 543 2026 LAWS OF MARYLAND
1. DEVELOPMENT OF PROPERTY INVENTORIES;
2. SITE DEVELOPMENT STUDIES;
3. SITE MATERIAL DEVELOPMENT;
4. SITE IMPLEMENTATION OR LAND ASSEMBLY
ACTIVITIES; AND
5. FEASIBILITY OR MARKET STUDIES;
(III) PARTNERSHIPS AND PLANNING TO BUILD READINESS FOR
FUTURE PROJECTS AND COLLABORATIVE INITIATIVES; AND
(IV) CROSS–SECTOR COLLABORATION FOR COMMUNITY AND
STAKEHOLDER ENGAGEMENT THAT FOSTERS PLANNING AND DIALOGUE.
(2) GRANT FUNDS MAY NOT BE USED TO:
(I) PAY OR REIMBURSE THE GRANTEE FOR EMPLOYEE SALARY,
WAGES, BENEFITS, OR OTHER INDIRECT COSTS OF THE GRANTEE THAT ARE NOT
RELATED TO THE PROJECT FOR WHICH A GRANT WAS AWARDED;
(II) FUND OPERATIONAL ACTIVITIES AT A FOR–PROFIT ENTITY;
(III) PURCHASE OR LEASE REAL PROPERTY; OR
(IV) SUPPORT A NONRURAL AREA.
(F) ON OR BEFORE OCTOBER 1 EACH YEAR, THE COUNCIL SHALL SUBMIT
TO THE GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY A REPORT ON:
(1) THE NUMBER OF GRANTS MADE IN THE PREVIOUS FISCAL YEAR;
(2) THE NAME OF EACH GRANT RECIPIENT; AND
(3) THE PURPOSE AND USE OF EACH GRANT.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2026.
Approved by the Governor, May 12, 2026.
–8–Every fact on this page links to its source, starting with the official bill record.