Legislative Recap: 2023 Session Bills Impacting Planning

Planning Assistance in Action

The Maryland Department of Planning (MDP) strives to inform counties and municipalities of legislation that impacts local planning efforts, and as needed, develop guidance and technical assistance to help jurisdictional staff and citizen planners address new requirements or access resources.

MDP has previously responded to legislative initiatives with our Housing Element Models & Guidelines (2019 HB 1045, 2021 HB 90), Nuisance Flood Plan Development Guidance (2019 HB 1427), Managing Maryland’s Growth: Transitioning to the 10-Year Review Cycle (2013 HB 409), and Sustainable Growth & Agricultural Preservation Act of 2012 Implementation (2012 SB 236). MDP will continue to develop the tools to help jurisdictions address legislative challenges and leverage legislative incentives and funding.

The 2023 Legislative Session brought significant changes to MDP’s legislative approach and facilitated significant interaction between our office, members of the General Assembly, and the Governor’s Legislative Office. Secretary Rebecca L. Flora and Assistant Secretary Kristin Fleckenstein met with multiple members of the legislature for both introductory and informational meetings.

Further, several MDP staff briefed members of the Governor’s Legislative Office on legislation with potential departmental impact. These activities proved successful in passing and amending legislation important to our mission. MDP looks forward to working on our legislative agenda for the 2024 session. Overall, the General Assembly passed 810 bills, approximately 40 of which were of interest to MDP and/or impacted the department either fiscally or operationally.

Below is a summary of bills that passed during the 2023 session that most impact planning in Maryland. Their inclusion does not indicate MDP’s endorsement or position regarding these bills. Rather, we are sharing them with our Planning Practice Monthly audience so you will be aware of pending legislative initiatives, changes, incentives, and requirements at both the state and local level.

If you would like to discuss any of the legislation described below, or potential technical assistance or guidance that MDP might develop to help local governments, please contact Joe Griffiths, Local Assistance and Training Manager, at joseph.griffiths@maryland.gov.

SB112/HB328 – Grants – Prompt Payment Requirement

Establishes invoicing and prompt payment requirements for certain state grants. It defines “grant” as a legal instrument of financial assistance between a state grant-making entity and a nonprofit organization exempt from taxation under § 501(c) of the Internal Revenue Code.

SB223/HB395 – State Facilities Changes and Closures – Procedures

Requires departments of the Maryland State Executive Branch to provide notice to the public, the General Assembly, and any employee bargaining organization (as defined in State Personnel and Pensions Article Section 3-101), as well as hold a public hearing, before changing the use, purpose, or function, or closing, a state facility. It also authorizes a government agency or judicial body to modify the notification and hearing timelines if it determines that an emergency posing a health risk exists.

SB425/HB674 – Maryland Historic Trust – Historic Preservation Loan Fund – Qualified Cooperating Nonprofit Organizations – Transfers

Alters the uses of the Historic Preservation Loan Fund and authorizes the Maryland Historic Trust to transfer funds to a qualified cooperating non-profit organization to pay for the acquisition of historic properties or interests therein, to pay the costs to restore and rehabilitate historic properties owned by the non-profit for resale or lease, to make loans to other non-profit organizations, political subdivisions, and businesses to acquire, rehabilitate, restore, or refinance historic properties, to make loans to individuals to rehabilitate or restore historic properties recognized as a National Historic Landmark, or to pay for necessary administrative and programmatic expenses associated with carrying out the transfer of the funds.

SB478/HB339 – Maryland Lynching Truth and Reconciliation Commission – Reporting and Sunset Extension

Extends the time to submit the final report of the Maryland Lynching Truth and Reconciliation Commission to December 1, 2025, and extends the termination date for the commission to June 30, 2026.

SB517/HB1140 – Port of Deposit State Historical Park – Planning

Alters the composition of the stakeholder advisory committee to advise the Department of Natural Resources (DNR) on the scope and management of Port of Deposit State Historical Park and requires DNR to submit a report to the General Assembly on or before September 1, 2024. The bill extends the deadline for the Bainbridge Development Corporation to transfer certain property to DNR to June 1, 2025. The bill authorizes the Governor to include in the state budget an appropriation of at least $400,000 to support park planning and development. The MDP Secretary, or designee, will be a member of the advisory committee managed by DNR, as will the Director of the Maryland Historical Trust, or designee.

SB783 – Preservation and Reuse of Historic Complexes Study and Extension of the Income Tax Credit for Catalytic Revitalization

Allows multiple final tax certificates to be issued for revitalization projects in certain circumstances and requires the Smart Growth Subcabinet to study Maryland’s historic complexes and make implementation plan recommendations to address their preservation and reuse on or before December 31, 2023.

HB9/SB19 – Equity in Transportation Sector – Guidelines and Analyses

Expands existing transportation plans, reports, and committees to include transportation equity issues. The bill requires the Maryland Department of Transportation (MDOT), beginning July 1, 2024, and in collaboration with the Maryland Transit Administration (MTA), to conduct two transit equity analyses, perform a cost-benefit analysis, consult with members and leaders of affected communities, and take actions based on the results of these activities before announcing any major transit service change, as defined by federal guidelines, or any reduction or cancellation of a capital expansion project in the construction program of the Consolidated Transportation Program (CTP) that exceeds transit equity thresholds developed by MTA.

As the bill requires equity issues to be addressed in various transportation plans, reports, and committees, MDP would be directly or indirectly involved in reviewing these as part of our partnership with MDOT. For example, MDP would review draft materials containing equity matters when MDOT updates the Maryland Transportation Plan. In addition, MDP is a member of MDOT’s Transportation Planning Advisory Committee that provides feedback on the state transportation goals, benchmarks, and indicators. The bill requires the advisory committee to recommend measurable transportation equity indicators, which MDP would support.

SB382 – Accessory Dwelling Unit Policy Task Force

Establishes the Accessory Dwelling Unit Policy Task Force to study the placement of accessory dwelling units (ADUs) on land zoned for single-family residential use and to survey and document a representative sampling of the variety or ordinances, laws, codes, and policies regarding accessory dwelling units at the state and local level. The task force is required to report to the Governor and General Assembly its activities on or before November 1, 2023, and its findings and recommendations on or before June 1, 2024. MDP will staff this task force and the Secretary, or designee, will be a member.

HB12 – Equitable and Inclusive Transit-Oriented Development Enhancement Act

Repeals the authority of the Secretary of Transportation to designate a transit–oriented development. The bill establishes the Transit–Oriented Development (TOD) Capital Grant and Revolving Loan Fund (Fund) as a special, non-lapsing fund and requires interest earnings of the Fund to be credited back to itself. The bill authorizes MDOT to use the fund to provide financial assistance to local jurisdictions for transit–oriented development purposes. This legislation requires the Smart Growth Subcabinet to reconvene in the coming months, pursuant to the MDOT Secretary’s direction on the TOD designation process.

HB 596/SB 511 – Health and Human Services Transportation Improvement Act of 2023

Establishes a State Coordinating Committee (Committee) for Health and Human Services Transportation in MDOT and repeals the limits on annual funding for the Maryland Senior Rides Program (MSRP) and the Job Access and Reverse Commute Program (JARCP) administered by MTA. MDP will be a member of the Committee.

HB0503/SB0923 – Natural Resources – Greenspace Equity Program – Establishment

Establishes the Greenspace Equity Program in DNR to provide grants for enhancing the public health and livability of overburdened and underserved communities by implementing projects to preserve, create, and enhance community greenspace. The bill requires DNR to submit certain grant applications to the Maryland State Clearinghouse for Intergovernmental Assistance, which is managed by MDP. Other applications are subject to approval by the Board of Public Works.

HB0586/SB0782 – State Procurement – Purchasing – Compost, Mulch, and Soil Amendments and Aggregate

Requires the Maryland Green Purchasing Committee to establish specifications for purchasing compost, mulch, or other soil amendments or aggregates produced from certain materials and publish and maintain the specifications online for use by state agencies.

HB0695 – Rural Maryland Prosperity Investment Fund – Allocation of Grants (Rural Communities Improvement Act of 2023)

Authorizes the allocation of grants from the Rural Maryland Prosperity Investment Fund (RMPIF) for certain business and workforce development activities. The bill alters the allowable uses of funds distributed through RMPIF but does not affect overall state expenditures. Funding may be reallocated among recipients, including institutions of higher learning.

SB0332/HB0690 – Maryland African American Museum Corporation – Board of Directors

Alters the membership of the Board of Directors of the Maryland African American Museum Corporation, reducing it from 37 to 25 members and adding one member appointed by the President of the Senate and one member appointed by the Speaker of the House.

SB0470/HB0631 – Natural Resources – Land Conservation – Establishment of Goals and Programs (Maryland the Beautiful Act)

Establishes goals and programs related to land conservation, including the Local Land Trust Revolving Loan Program to provide loans to land trusts for purchasing land for conservation purposes. It authorizes the Maryland Environmental Trust to exercise remedies under certain circumstances and prohibits a person from making any false statements affecting a Local Land Trust Revolving Loan Program loan. The bill establishes the 40 x 40 Land Conservation Implementation Grant Program to support land conservation goals.

As of June 30, 2022, approximately 868,627 acres of productive agricultural land have been preserved, which is 84.3% of the 1,030,000-acre goal established by Chapter 284 in 2021. Overall, 1,839,453 acres of land, approximately 29% of the land acreage in the state, have been protected through these programs and other efforts.

SB694 – Department of Natural Resources’ Real Property – Exchange With Private Real Property

Authorizes the state to exchange real property it owns with private real property, under certain circumstances, for the use and benefit of the DNR. Each unit of state government must notify MDP in writing of any real property that exceeds its needs, or any substantial change to any real property owned by the state. MDP must study the proper disposition of the property, determine whether any local government or unit of the state government is interested in the property, and make any appropriate recommendations to the respective state agency and to the Board of Public Works.

For real property acquired under specified provisions of the Natural Resources Article of the Maryland Code, and other similar, specified public lands, when a unit of state government notifies MDP, it must include with the notification specified information relating to the property. After MDP receives notice from a unit of state government, MDP must notify specified committees of the General Assembly, the General Assembly members who represent the legislative district in which the property is located, and owners of property adjacent to the excess property.


 

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