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Committee advances bill designating transit-oriented areas as enterprise zones; PLA scoring prompts debate

Economic Matters Committee · March 19, 2026
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Summary

House Bill 894 would automatically designate transit-oriented development (TOD) areas as enterprise zones to incentivize housing near transit and delay impact fees; committee discussion focused on procurement scoring and whether project labor agreements (PLAs) advantage out-of-state union labor, a concern raised by one member.

Presenter (speaker 7) told the committee HB894 would automatically designate transit-oriented development areas as enterprise zones to bring tax incentives and other financing tools to accelerate housing near transit, remove unnecessary parking mandates near stations, and prioritize state land for smart-growth projects.

Committee member Adams (speaker 11) asked whether the bill's scoring system could include points for PLAs and warned that PLA language could lead to bringing union labor from out of state on large construction projects; he said, "The only way you're gonna be able to get a sizable construction project done is to bring unions out of state to work in our state of Maryland." He urged that MERIT-based competition remain viable.

Sponsor (speaker 7) and a committee member (speaker 3) responded that procurement remains competitive and that PLA is one factor among several points in the scoring matrix; sponsor said the language preserves flexibility and that amendments protect local authority and fiscal responsibility.

The committee moved the bill favorable as amended and passed it. Members said further floor debate was possible on PLA scoring language.