(a) (1) In this section the following words have the meanings indicated.

(2) “Account” means the Economic Development Opportunities Program Account.

(3) “Executive agency” means an executive department or agency in the Executive Branch of State government, including all offices of the Executive Department or agency directly responsible to the Governor.

(4) “Extraordinary economic development opportunity” means the:

(i) attraction of a new private sector enterprise to the State or retention or expansion of an existing private sector enterprise in the State that:

1. maintains a strong financial condition and minimal credit risk profile;

2. is capable of accessing alternative sources of financing through financial institutions or capital markets;

3. is consistent with the strategic plan of the State for economic development;

4. creates or retains substantial employment, particularly in areas of high unemployment; and

5. invests in capital at a level equal to five times the value of the incentive offered;

(ii) retention or expansion of an existing public institution, private institution, or federal research and development institute that:

1. is consistent with the strategic plan of the State for economic development; and

2. creates or retains substantial employment, particularly in areas of high unemployment; or

(iii) establishment or attraction of a public institution, a private institution, or a federal research and development institute new to the State that:

1. is consistent with the strategic plan of the State for economic development; and

2. creates or retains substantial employment, particularly in areas of high unemployment.

(5) (i) “Performance requirement” means a contractual agreement between an executive agency and an Account recipient that requires the Account recipient to meet minimum economic development outcomes in exchange for a grant or a loan under this section.

(ii) “Performance requirement” includes claw-back, penalty, rescission, and recalibration clauses that utilize job creation, capital investment, and other measures of economic development.

(6) “Private sector enterprise” means any commercial, industrial, educational, or research organization which is not a part of or controlled by a federal, State, or local government agency.

(b) Subject to the provisions of this section, the Economic Development Opportunities Program Account is established to maximize extraordinary economic development opportunities.

(c) Subject to subsection (r) of this section, the Governor may provide an appropriation in the budget bill to the Account for a specific or general purpose or purposes.

(d) After notice to and approval by the Legislative Policy Committee, the Governor may transfer funds by budget amendment from the Economic Development Opportunities Program Account to the expenditure account of the appropriate executive agency.

(e) (1) The Account is a continuing, nonlapsing fund which is not subject to § 7-302 of this subtitle.

(2) The Treasurer shall separately hold, and the Comptroller shall account for, the Account.

(3) The Account shall be invested and reinvested in the same manner as other State funds.

(4) Except as provided in paragraph (5) of this subsection, any investment earnings shall be subject to § 7-311(d) of this subtitle.

(5) Any investment earnings on money transferred from the Account to a second continuing, nonlapsing fund may be retained to the credit of the second fund.

(f) (1) Money appropriated or credited to the Account does not revert to the Revenue Stabilization Account.

(2) Except as provided in paragraph (3) of this subsection, repayments of principal or interest on any loan from the Account shall be retained to the credit of the Account.

(3) Repayments of principal or interest on any loan made from money transferred from the Account to a second continuing, nonlapsing fund may be retained to the credit of the second fund.

(g) (1) The Department of Commerce shall include the following information in the report that is required under § 2.5-109 of the Economic Development Article:

(i) the financial status of the program and a summary of its operations for the preceding fiscal year;

(ii) for the previous 3 fiscal years, the status of Account disbursements for economic development projects reviewed by the Legislative Policy Committee under this section;

(iii) for the previous 3 fiscal years, the status of job creation, capital investment, and other measures of economic development for each economic development project reviewed by the Legislative Policy Committee under this section;

(iv) a list of guidelines for the kinds of performance requirements that may be negotiated with the loan or grant applicant; and

(v) an explanation if the job creation, capital investment, and other measures of economic development described in items (i) through (iii) of this paragraph are lower than negotiated according to subsection (h)(1) of this section.

(2) Upon receipt of the information that is required to be reported under this subsection, the Legislative Policy Committee shall have 60 days to review and comment on the information provided by the Department of Commerce under paragraph (1) of this subsection, during which time the Department of Commerce shall provide any additional information regarding the Account as requested by the Legislative Policy Committee.

(h) (1) Except as provided in paragraph (2) of this subsection and in subsection (i) of this section, any funds transferred from the Economic Development Opportunities Program Account shall be used only for extraordinary economic development opportunities that:

(i) meet the criteria provided in this section;

(ii) include performance requirements; and

(iii) in addition to the performance requirements under item (ii) of this paragraph, include a performance requirement that utilizes a claw-back provision.

(2) The Account may pay an executive agency for administrative, legal, or actuarial expenses incurred by the agency in connection with transactions funded by transfers of money to the agency from the Account.

(i) The Legislative Policy Committee may approve an economic development opportunity that is not an extraordinary economic development opportunity if the executive agency requesting the transfer of funds offers a detailed justification for the exception. The Legislative Policy Committee shall give particular consideration to an exception that would provide a significant economic development opportunity for an area of the State that has a relatively high unemployment rate or relatively low per capita income.

(j) (1) The Department of Commerce may modify the guidelines for the kinds of performance requirements that may be negotiated with the loan or grant as needed, upon approval of the Legislative Policy Committee.

(2) An executive agency may depart from these guidelines as needed, upon approval of the Legislative Policy Committee.

(k) Subject to the provisions of this subtitle, funds transferred from the Economic Development Opportunities Program Account, to an executive agency, may be loaned, granted, or invested for:

(1) assisting in the retention or expansion of existing private sector enterprises, public or private institutions, or federal research and development institutes;

(2) assisting in the establishment or attraction of private sector enterprises, public or private institutions, or federal research and development institutes new to this State; or

(3) providing assistance where existing State or local programs lack sufficient resources or are constrained by timing or program design from being utilized.

(l) Upon submission to the Legislative Policy Committee of a proposed budget amendment to transfer money from the Account, the Governor shall provide, subject to § 2-1257 of the State Government Article, to the Legislative Policy Committee:

(1) a detailed description of:

(i) the proposed use of the funds;

(ii) the manner in which the proposed use meets the criteria as set forth in this section;

(iii) the degree to which the proposed use of funds will advance statewide or local economic development strategies and objectives; and

(iv) the degree to which available sources of federal, State, local, and private financial support have been sought and will be utilized;

(2) the terms, conditions, and performance requirements of any grant or loan for which the funds are to be used;

(3) a comprehensive economic analysis of the proposed use of the funds which estimates:

(i) the economic impact to the State and the local jurisdictions affected;

(ii) a minimum level of net economic benefits to the public sector;

(iii) the number of jobs expected to be created as a result of the proposed economic development project and the percentage of those jobs that are expected to be held by Maryland residents;

(iv) the wage rates and benefit packages for the jobs expected to be created as a result of the proposed economic development project; and

(v) any other appropriate financial or economic benefits;

(4) any other analysis or information that is requested by the Legislative Policy Committee; and

(5) the date on which the executive agency expects to disburse the funds to the proposed recipient.

(m) If an executive agency fails to disburse transferred funds to a recipient within 1 year after the expected disbursement date presented to the Legislative Policy Committee under subsection (l) of this section, the funds will revert back to the Account and the Governor shall:

(1) resubmit the proposed budget amendment to transfer money from the Account to the Legislative Policy Committee; and

(2) provide the Legislative Policy Committee with the information required under subsection (l) of this section.

(n) Funds appropriated to the Economic Development Opportunities Program Account may not be loaned, granted, or invested for:

(1) substituting for funds from other State or local programs for which a project may be eligible and sufficient resources exist;

(2) projects which are not likely to attract or retain employment opportunities;

(3) funding projects located outside the State;

(4) construction or land acquisition by the Maryland Stadium Authority; or

(5) funding for any sports activity or facility.

(o) (1) This subsection does not apply to an economic development opportunity located in an area designated as a qualified opportunity zone under § 1400Z-1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County.

(2) In the case of an economic development opportunity located outside a priority funding area as established under Title 5, Subtitle 7B of this article, the Department shall first comply with the provisions of that subtitle before making a request for approval by the Legislative Policy Committee under this section.

(p) An executive agency may approve changes to a transaction approved by the Legislative Policy Committee as long as the changes do not materially and adversely affect the overall position of the executive agency in the transaction or the economic development benefits to be derived by the State in the transaction.

(q) (1) (i) In this subsection the following words have the meanings indicated.

(ii) “Financial assistance” means a grant, loan, or investment provided under this subsection that exceeds $100,000.

(iii) “Political subdivision” includes an agency or other instrumentality of the political subdivision.

(2) This subsection does not apply to financial assistance used solely for the purpose of acquiring real property or structures on real property.

(3) With respect to financial assistance under this section to a political subdivision:

(i) if the political subdivision has a program for promoting procurement opportunities among minority businesses that is acceptable to the Department of Commerce, the political subdivision shall apply the requirements of that program to the procurement of goods or services made with the proceeds from the financial assistance; but

(ii) if the political subdivision does not have a program that is acceptable to the Department of Commerce under item (i) of this paragraph, the political subdivision is subject to paragraph (4) of this subsection.

(4) (i) In this paragraph, “minority business enterprise” has the meaning stated in § 14-301 of this article.

(ii) With respect to financial assistance under this section to an entity other than a political subdivision, the entity shall agree to include in the agreement providing the financial assistance a provision acceptable to the Department of Commerce that would encourage the procurement from minority business enterprises of goods or services purchased with the proceeds from the financial assistance.

(iii) In negotiating the provision required under subparagraph (ii) of this paragraph, the Department of Commerce shall take into account relevant factors, including:

1. the intended use of the proceeds from the financial assistance; and

2. the feasibility of obtaining the required goods or services from minority business enterprises.

(5) The Department of Commerce may require that a recipient of financial assistance under this section submit to the Department of Commerce a list, or an updated list, of the minority business enterprises from which goods or services were procured and the nature and dollar amount of the goods or services.

(r) (1) For fiscal years 2019 through 2021, the Governor shall include in the annual budget bill an appropriation of $5,000,000 to the Account to be used by the Department of Commerce to provide conditional loans or grants to companies that meet the following criteria:

(i) construction of company headquarters in the State with capital expenditures of at least $500,000,000; and

(ii) retention of company headquarters in the State with at least 3,250 eligible employees, consistent with a letter of intent entered into with the Department of Commerce in October 2016.

(2) On or before December 1, 2017, and each December 1 through 2021, the Department of Commerce shall submit a report, in accordance with § 2-1257 of the State Government Article, to the Senate Budget and Taxation Committee and the House Appropriations Committee on the compliance of a company with the letter of intent described under paragraph (1)(ii) of this subsection.