Bill No. 14 -12
Concerning: Economic Development Fund – Amendments
Revised: September 11, 2012 Draft No. 7
Introduced: March 20, 2012
Enacted: September 18, 2012
Executive: September 20, 2012
Effective: December 20, 2012
Sunset Date: None
Ch. 17 , Laws of Mont. Co. 2012
For Montgomery County, Maryland
AN ACT to:
(1) require the Executive to propose and update an economic development strategic plan for the County, subject to Council approval;
(2) establish criteria for offers of financial assistance from the Economic Development Fund that promote the County’s approved economic development strategic plan;
(3) require the Council to approve certain offers of assistance from the Economic Development Fund; and
(4) generally amend the County economic development laws.
Montgomery County Code
Chapter 20, Finance
Sections 20-75 and 20-76
Boldface Heading or defined term. Underlining Added to existing law by original bill. [Single boldface
from existing law by original bill. Double
by amendment. [[Double boldface
from existing law or the bill by amendment. *
* * Existing law unaffected by bill.
Boldface Heading or defined term.
Underlining Added to existing law by original bill.
[Single boldface brackets] Deleted from existing law by original bill.
Double underlining Added by amendment.
[[Double boldface brackets]] Deleted from existing law or the bill by amendment.
* * * Existing law unaffected by bill.
Sec. 1. Sections 20-75 and 20-76 are amended as follows:
20-75. Use of Fund.
(a) The Director may spend or allocate funds from this Fund consistent with the economic development strategic plan approved under Section 20-76 [[and on the basis of criteria defined]] in a Regulation adopted under method (1), including the following criteria:
(1) the proposed assistance will materially improve the County’s economy and advance County economic development objectives and strategies; or
(2) the assistance is necessary to:
(A) bring a significant number of new jobs to the County;
(B) add a significant number of new jobs to an existing operation in the County;
(C) retain a significant number of jobs at an existing operation in the County or
(D) respond to other economic development objectives.
(b) The Director must provide the Council with all fiscal analyses and other supporting documents for any proposed offer of assistance to a private employer valued at more than $100,000. The supporting documents must include:
(1) the name, industry, location, employee compensation profile, and estimated current and future taxes paid by the prospective recipient;
(2) the estimated employment and tax revenue gains resulting from the proposed assistance;
(3) each assumption, variable, and model used to generate estimates of employment and tax revenue gains;
(4) the number of new residents estimated to move into the County resulting from gains in employment by the proposed recipient;
(5) the number and cost of new students estimated to enroll in County public schools;
(6) an analysis of how the proposed assistance supports the overall goals of the economic development strategy; and
(7) offers, if any, made by or expected from other competing jurisdictions.
(c) The Executive must notify the Council at least  5 working days before the Executive tentatively offers assistance valued at more than $100,000 to a private employer, including all fiscal analyses and other supporting documents described in subsection (b). During a Council recess of one week or longer, the Executive must notify the Council at least  10 working days before the Executive tentatively offers assistance valued at more than $100,000 to a private employer. If during either notice period the Council President notifies the Executive that more time is necessary for the Council to [comment] review the tentative offer, the Executive must wait an additional  5 working days (or  10 working days during a Council recess) before [offering] making a tentative offer of assistance to the private employer.
[(c)] (d) The [[Council]] Executive must [[approve each]] not provide [[offer of]] assistance to a private employer valued at more than $500,000 unless the grant or loan is approved by the Council in a special or supplemental appropriation. The amount of any discount from market value in the sale of County property offered as part of the assistance must be included in the value of the assistance. The Executive must submit an economic development agreement to the Council within 60 days after all parties to the agreement execute it.
(e) The notice required under subsection [(b)] (c) must also specify the proposed terms of any assistance offered, including any repayment provisions.
[(d)] (f) Unless expressly inconsistent with any other federal, state, or County law, the terms of any assistance from the Fund must require the recipient to meet certain performance criteria specified in the offer of assistance, including a repayment agreement unless the Executive [describes] justifies why repayment of assistance is not required.
[(e)] (g) * * *
20-76. Economic Development Strategic Plan, Administration.
(a) The Executive must submit, by method 1 regulation, [[a proposed]] an economic development strategic plan for the County to the Council for approval on or before July 1, 2015 and [[of]] each [[even numbered]] fourth year thereafter. [[The Council may amend the proposed strategic plan and must approve a final strategic plan by resolution.]] The success or progress of the strategic plan must be measurable and the plan must include measures to address:
(1) job creation;
(2) private sector compensation and benefits;
(3) target industries;
(4) target geographic areas;
(5) workforce education and training;
(6) growth in tax base;
(7) economic opportunity for residents;
(8) encouragement of entrepreneurs and small business;
(9) land use; and
(10) other actions necessary to promote economic development in the County.
(b) The Executive may adopt Regulations under method (1) to administer this Fund.
[(b)] (c) The Executive must report by March 15 each year on the status and use of the Fund. This report can be included in the Executive’s proposed operating budget. The annual report must:
(1) describe the success of each award of financial assistance in satisfying the economic development goals supporting the assistance;
(2) identify any assistance agreement where the recipient did not satisfy the performance criteria in the agreement; and
(3) track the progress of the Fund in satisfying the overall goals of the approved economic development strategic plan.
Sec. 2. Transition.
The County Executive must submit the initial [[proposed]] method 1 regulation containing an economic development strategic plan to the Council for approval not later than 180 days after this Act becomes law. In addition to the requirements of 20-76(a), the initial proposed economic development strategic plan must:
(a) analyze the County’s economic development structure;
(b) compare the County’s structure with peer jurisdictions;
(c) identify and analyze different alternative government and non-government entities that could perform each core function of economic development;
(d) determine the total amount of public and private money spent in each peer jurisdiction to achieve current levels of service; and
(e) recommend changes, if appropriate, to the County’s structure.