MD
Maryland House Bill HB1479

Maryland 2022 Regular Session

Maryland House Bill HB1479 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *hb1479*
96
107 HOUSE BILL 1479
118 C8 2lr3306
129 CF SB 885
1310 By: Delegate Lierman
1411 Introduced and read first time: March 1, 2022
1512 Assigned to: Rules and Executive Nominations
16-Re–referred to: Ways and Means, March 22, 2022
17-Committee Report: Favorable with amendments
18-House action: Adopted
19-Read second time: March 28, 2022
2013
21-CHAPTER ______
14+A BILL ENTITLED
2215
2316 AN ACT concerning 1
2417
2518 Maryland Technology Development Corporation – Maryland Equity Investment 2
2619 Fund – Established 3
2720
2821 FOR the purpose of establishing the Maryland Equity Investment Fund in the Maryland 4
2922 Technology Development Corporation; providing for the investment of certain 5
3023 General Fund surplus in certain private equity and venture capital in the State for 6
3124 a certain purpose through the Fund; altering, for a certain fiscal year, the 7
3225 distribution of certain General Fund surplus; and generally relating to investments 8
3326 in private equity and venture capital in the State and the Maryland Technology 9
3427 Development Corporation. 10
3528
3629 BY adding to 11
3730 Article – Economic Development 12
3831 Section 10–487 to be under the amended part “Part X. Miscellaneous Funds” 13
3932 Annotated Code of Maryland 14
4033 (2018 Replacement Volume and 2021 Supplement) 15
4134
4235 BY repealing and reenacting, without amendments, 16
4336 Article – State Finance and Procurement 17
4437 Section 7–311(a)(1) and (2) 18
4538 Annotated Code of Maryland 19
4639 (2021 Replacement Volume) 20
4740
48-BY repealing and reenacting, with amendments, 21 2 HOUSE BILL 1479
41+BY repealing and reenacting, with amendments, 21
42+ Article – State Finance and Procurement 22
43+Section 7–311(j)(1)(iii) and (iv) 23
44+ Annotated Code of Maryland 24
45+ (2021 Replacement Volume) 25
46+
47+BY adding to 26
48+ Article – State Finance and Procurement 27 2 HOUSE BILL 1479
4949
5050
51- Article – State Finance and Procurement 1
52-Section 7–311(j)(1)(iii) and (iv) 2
53- Annotated Code of Maryland 3
54- (2021 Replacement Volume) 4
51+Section 7–311(j)(1)(v) 1
52+ Annotated Code of Maryland 2
53+ (2021 Replacement Volume) 3
5554
56-BY adding to 5
57- Article – State Finance and Procurement 6
58-Section 7–311(j)(1)(v) 7
59- Annotated Code of Maryland 8
60- (2021 Replacement Volume) 9
55+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
56+That the Laws of Maryland read as follows: 5
6157
62- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
63-That the Laws of Maryland read as follows: 11
58+Article – Economic Development 6
6459
65-Article – Economic Development 12
60+Part X. [Pre–Seed Builder Fund] MISCELLANEOUS FUNDS. 7
6661
67-Part X. [Pre–Seed Builder Fund] MISCELLANEOUS FUNDS. 13
62+10–487. 8
6863
69-10–487. 14
64+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 9
65+INDICATED. 10
7066
71- (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 15
72-INDICATED. 16
67+ (2) “FUND” MEANS THE MARYLAND EQUITY INVESTMENT FUND. 11
7368
74- (2) “FUND” MEANS THE MARYLAND EQUITY INVESTMENT FUND. 17
69+ (3) “PRIVATE EQUITY ” MEANS AN ASSET CLASS CONSISTING OF 12
70+EQUITY SECURITIES AN D DEBT IN OPERATING COMPANIES THAT ARE N OT PUBLICLY 13
71+TRADED ON A STOCK EX CHANGE. 14
7572
76- (3) “PRIVATE EQUITY ” MEANS AN ASSET CLASS CONSISTING OF 18
77-EQUITY SECURITIES AN D DEBT IN OPERATING COMPANIES THAT ARE N OT PUBLICLY 19
78-TRADED ON A STOCK EX CHANGE. 20
73+ (4) “SEVERAL SYSTEMS ” HAS THE MEANING STAT ED IN § 20–201 OF 15
74+THE STATE PERSONNEL AND PENSIONS ARTICLE. 16
7975
80- (4) “QUALIFIED BUSINESS ” MEANS A BUSINESS THA T, AT THE TIME 21
81-OF THE FIRST INVESTM ENT IN THE BUSINESS : 22
76+ (5) “VENTURE CAPITAL ” MEANS AN INVESTMENT OF CAPITAL TO A 17
77+BUSINESS AT ANY STAG E OF ITS DEVELOPMENT BEFORE THE BUSINESS MAKES A 18
78+PUBLIC OFFERING OF S TOCK. 19
8279
83- (I) HAS ITS PRINCIPAL BU SINESS OPERATIONS LO CATED IN 23
84-THE STATE AND INTENDS TO MAINTAIN ITS PRINCIP AL BUSINESS OPERATIO NS IN 24
85-THE STATE AFTER RECEIVING AN INVESTMENT UNDER THE PROGRAM; 25
80+ (B) THERE IS A MARYLAND EQUITY INVESTMENT FUND IN THE 20
81+CORPORATION . 21
8682
87- (II) HAS AGREED TO USE TH E QUALIFIED INVESTME NT 26
88-PRIMARILY TO: 27
83+ (C) THE PURPOSE OF THE FUND IS TO ALLOW UNAP PROPRIATED GENERAL 22
84+FUND SURPLUS TO BE IN VESTED IN THE STATE WITH A GOAL TO INCREASE PRIVATE 23
85+EQUITY AND VENT URE CAPITAL IN THE STATE, WITH THE INTEREST EA RNINGS AND 24
86+INVESTMENT RETURNS R EALIZED FROM THOSE I NVESTMENTS TO THE BE NEFIT OF 25
87+THE PARTICIPANTS OF THE SEVERAL SYSTEMS . 26
8988
90- 1. SUPPORT BUSINESS OPE RATIONS IN THE STATE; OR 28
89+ (D) THE CORPORATION SHALL MAN AGE AND SUPERVISE TH E FUND. 27
9190
92- 2. IN THE CASE OF A STA RT–UP COMPANY , ESTABLISH 29
93-AND SUPPORT BUSINESS OPERATIONS IN THE STATE; 30
94-
95- (III) HAS NOT MORE THAN 250 EMPLOYEES; AND 31 HOUSE BILL 1479 3
91+ (E) (1) THE FUND IS A SPECIAL, NONLAPSING REVOLVING FUND THAT IS 28
92+NOT SUBJECT TO REVER SION UNDER § 7–302 OF THE STATE FINANCE AND 29
93+PROCUREMENT ARTICLE. 30
94+ HOUSE BILL 1479 3
9695
9796
97+ (2) THE STATE TREASURER SHALL HOLD THE FUND, AND THE 1
98+COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
9899
99- (IV) IS NOT PRIMARILY ENG AGED IN: 1
100+ (F) THE FUND CONSISTS OF : 3
100101
101- 1. RETAIL SALES; 2
102+ (1) MONEY DISTRIBUTED TO THE FUND UNDER § 7–311 OF THE STATE 4
103+FINANCE AND PROCUREMENT ARTICLE; 5
102104
103- 2. REAL ESTATE DEVELOPM ENT; 3
105+ (2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 6
104106
105- 3. THE BUSINESS OF INSU RANCE, BANKING, OR 4
106-LENDING; OR 5
107+ (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 7
108+THE BENEFIT OF THE FUND. 8
107109
108- 4. THE PROVISION OF PRO FESSIONAL SERVICES B Y 6
109-ACCOUNTANTS , ATTORNEYS, OR PHYSICIANS. 7
110+ (G) THE FUND MAY BE USED ONLY: 9
110111
111- (4) (5) “SEVERAL SYSTEMS ” HAS THE MEANING STAT ED IN § 8
112-20–201 OF THE STATE PERSONNEL AND PENSIONS ARTICLE. 9
112+ (1) FOR THE PURPOSES DES CRIBED IN SUBSECTION (C) OF THIS 10
113+SECTION; AND 11
113114
114- (5) (6) “VENTURE CAPITAL ” MEANS AN INVESTMENT OF CAPITAL 10
115-TO A BUSINESS AT ANY STAGE OF ITS DEVELOP MENT BEFORE THE BUSI NESS MAKES 11
116-A PUBLIC OFFERING OF S TOCK. 12
115+ (2) TO PAY THE COSTS NEC ESSARY TO ADMINISTER THE FUND. 12
117116
118- (B) THERE IS A MARYLAND EQUITY INVESTMENT FUND IN THE 13
119-CORPORATION . 14
117+ (H) (1) THE STATE TREASURER SHALL INVES T MONEY IN THE FUND IN 13
118+THE SAME MANNER AS O THER STATE MONEY. 14
120119
121- (C) THE PURPOSE OF THE FUND IS TO ALLOW UNAP PROPRIATED GENERAL 15
122-FUND SURPLUS TO BE IN VESTED IN THE STATE A QUALIFIED BUSINESS WITH A GOAL 16
123-TO INCREASE PRIVATE EQUITY AND VENTURE CA PITAL IN THE STATE, WITH THE 17
124-INTEREST EARNINGS AN D INVESTMENT RETURNS REALIZED FROM THOSE 18
125-INVESTMENTS TO THE B ENEFIT OF THE PARTIC IPANTS OF THE SEVERA L SYSTEMS. 19
120+ (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 15
121+PARAGRAPH , ANY INVESTMENT EARNI NGS OF THE FUND AND INVESTMENT 16
122+RETURNS REALIZED FRO M THE INVESTMENTS MA DE UNDER THIS SECTIO N SHALL 17
123+BE CREDITED TO THE A CCUMULATION FUNDS OF THE SEVERAL SYSTEMS 18
124+ESTABLISHED UNDE R § 21–303 OF THE STATE PERSONNEL AND PENSIONS ARTICLE 19
125+AT THE DIRECTION OF THE BOARD OF TRUSTEES FOR THE STATE RETIREMENT AND 20
126+PENSION SYSTEM. 21
126127
127- (D) THE CORPORATION SHALL MAN AGE AND SUPERVISE TH E FUND. 20
128+ (II) THE CORPORATION MAY RETAI N 50% OF INVESTMENT 22
129+RETURNS REALIZED FRO M THE INVESTMENTS MA DE UNDER THIS SECTIO N. 23
128130
129- (E) (1) THE FUND IS A SPECIAL, NONLAPSING REVOLVING FUND THAT IS 21
130-NOT SUBJECT TO REVER SION UNDER § 7–302 OF THE STATE FINANCE AND 22
131-PROCUREMENT ARTICLE. 23
131+Article – State Finance and Procurement 24
132132
133- (2) THE STATE TREASURER SHALL HOLD THE FUND, AND THE 24
134-COMPTROLLER SHALL ACC OUNT FOR THE FUND. 25
133+7–311. 25
135134
136- (F) THE FUND CONSISTS OF: 26
135+ (a) (1) In this section the following words have the meanings indicated. 26
137136
138- (1) MONEY DISTRIBUTED TO THE FUND UNDER § 7–311 OF THE STATE 27
139-FINANCE AND PROCUREMENT ARTICLE; 28
137+ (2) “Account” means the Revenue Stabilization Account. 27
140138
141- (2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 29
142- 4 HOUSE BILL 1479
139+ (j) (1) Except as provided in paragraph (2) of this subsection, for fiscal year 28
140+2007 and for each subsequent fiscal year, the Governor shall include in the budget bill an 29 4 HOUSE BILL 1479
143141
144142
145- (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 1
146-THE BENEFIT OF THE FUND. 2
143+appropriation: 1
147144
148- (G) THE FUND MAY BE USED ONLY : 3
145+ (iii) for fiscal year 2021, to the Account in the amount of 2
146+$291,439,149; [and] 3
149147
150- (1) FOR THE PURPOSES DES CRIBED IN SUBSECTION (C) OF THIS 4
151-SECTION; AND 5
148+ (iv) EXCEPT AS PROVIDED I N ITEM (V) OF THIS PARAGR APH, for 4
149+fiscal year 2022 and each fiscal year thereafter: 5
152150
153- (2) TO PAY THE COSTS NEC ESSARY TO ADMINISTER THE FUND. 6
151+ 1. to the accumulation funds of the State Retirement and 6
152+Pension System an amount, up to a maximum of $25,000,000, that is equal to one–quarter 7
153+of the amount by which the unappropriated General Fund surplus as of June 30 of the 8
154+second preceding fiscal year exceeds $10,000,000; 9
154155
155- (H) (1) THE STATE TREASURER SHALL INVES T MONEY IN THE FUND IN 7
156-THE SAME MANNER AS O THER STATE MONEY. 8
156+ 2. to the Postretirement Health Benefits Trust Fund 10
157+established under § 34–101 of the State Personnel and Pensions Article an amount, up to 11
158+a maximum of $25,000,000, that is equal to one–quarter of the amount by which the 12
159+unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 13
160+exceeds $10,000,000; and 14
157161
158- (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 9
159-PARAGRAPH , ANY INVESTMENT EARNI NGS OF THE FUND AND INVESTMENT 10
160-RETURNS REALIZED FRO M THE INVESTMENTS MA DE UNDER THIS SECTIO N SHALL 11
161-BE CREDITED TO THE A CCUMULATION FUNDS OF THE SEVERAL SYSTEMS 12
162-ESTABLISHED UNDER § 21–303 OF THE STATE PERSONNEL AND PENSIONS ARTICLE 13
163-AT THE DIRECTION OF THE BOARD OF TRUSTEES FOR THE STATE RETIREMENT AND 14
164-PENSION SYSTEM. 15
162+ 3. to the Account equal to the amount by which the 15
163+unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 16
164+exceeds $10,000,000, less the amount of the appropriations under items 1 and 2 of this item; 17
165+AND 18
165166
166- (II) THE CORPORATION MAY RETAI N 50% OF INVESTMENT 16
167-RETURNS REALIZED FRO M THE INVESTMENTS MA DE UNDER THIS SECTION. 17
167+ (V) FOR FISCAL YEAR 2024: 19
168168
169-Article – State Finance and Procurement 18
169+ 1. TO THE MARYLAND EQUITY INVESTMENT FUND 20
170+ESTABLISHED UNDER § 10–487 OF THE ECONOMIC DEVELOPMENT ARTICLE AN 21
171+AMOUNT, UP TO $10,000,000, THAT IS EQUAL TO 10% OF THE AMOUNT BY WHI CH 22
172+THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 23
173+PRECEDING FISCAL YEA R EXCEEDS $10,000,000; 24
170174
171-7–311. 19
175+ 2. TO THE ACCUMULATION FUNDS O F THE STATE 25
176+RETIREMENT AND PENSION SYSTEM AN AMOUNT , UP TO A MAXIMUM OF 26
177+$15,000,000, THAT IS EQUAL TO 15% OF THE AMOUNT BY WHI CH THE 27
178+UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 28
179+PRECEDING FISCAL YEA R EXCEEDS $10,000,000; 29
172180
173- (a) (1) In this section the following words have the meanings indicated. 20
181+ 3. TO THE POSTRETIREMENT HEALTH BENEFITS TRUST 30
182+FUND ESTABLISHED UNDE R § 34–101 OF THE STATE PERSONNEL AND PENSIONS 31
183+ARTICLE AN AMOUNT , UP TO A MAXIMUM OF $25,000,000, THAT IS EQUAL TO 25% 32
184+OF THE AMOUNT BY WHI CH THE UNAPPROPRIATE D GENERAL FUND SURPLUS AS OF 33
185+JUNE 30 OF THE SECOND PRECEDING FISCAL YEAR EXCEEDS $10,000,000; AND 34
174186
175- (2) “Account” means the Revenue Stabilization Account. 21
176-
177- (j) (1) Except as provided in paragraph (2) of this subsection, for fiscal year 22
178-2007 and for each subsequent fiscal year, the Governor shall include in the budget bill an 23
179-appropriation: 24
180-
181- (iii) for fiscal year 2021, to the Account in the amount of 25
182-$291,439,149; [and] 26
183-
184- (iv) EXCEPT AS PROVIDED I N ITEM (V) OF THIS PARAGRAPH , for 27
185-fiscal year 2022 and each fiscal year thereafter: 28
186-
187- 1. to the accumulation funds of the State Retirement and 29
188-Pension System an amount, up to a maximum of $25,000,000, that is equal to one–quarter 30 HOUSE BILL 1479 5
187+ 4. TO THE ACCOUNT EQUAL TO THE AMOUNT BY WHICH 35 HOUSE BILL 1479 5
189188
190189
191-of the amount by which the unappropriated General Fund surplus as of June 30 of the 1
192-second preceding fiscal year exceeds $10,000,000; 2
190+THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 1
191+PRECEDING FISCAL YEA R EXCEEDS $10,000,000, LESS THE AMOUNT OF T HE 2
192+APPROPRIATIO NS UNDER ITEMS 1 THROUGH 3 OF THIS ITEM. 3
193193
194- 2. to the Postretirement Health Benefits Trust Fund 3
195-established under § 34–101 of the State Personnel and Pensions Article an amount, up to 4
196-a maximum of $25,000,000, that is equal to one–quarter of the amount by which the 5
197-unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 6
198-exceeds $10,000,000; and 7
199-
200- 3. to the Account equal to the amount by which the 8
201-unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 9
202-exceeds $10,000,000, less the amount of the appropriations under items 1 and 2 of this item; 10
203-AND 11
204-
205- (V) FOR FISCAL YEAR 2024: 12
206-
207- 1. TO THE MARYLAND EQUITY INVESTMENT FUND 13
208-ESTABLISHED UNDER § 10–487 OF THE ECONOMIC DEVELOPMENT ARTICLE AN 14
209-AMOUNT, UP TO $10,000,000, THAT IS EQUAL TO 10% OF THE AMOUNT BY WHI CH 15
210-THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 16
211-PRECEDING FISCAL YEA R EXCEEDS $10,000,000; 17
212-
213- 2. TO THE ACCUMULATION FUNDS OF THE STATE 18
214-RETIREMENT AND PENSION SYSTEM AN AMOUNT , UP TO A MAXIMUM OF 19
215-$15,000,000, THAT IS EQUAL TO 15% OF THE AMOUNT BY WHI CH THE 20
216-UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 21
217-PRECEDING FISCA L YEAR EXCEEDS $10,000,000; 22
218-
219- 3. TO THE POSTRETIREMENT HEALTH BENEFITS TRUST 23
220-FUND ESTABLISHED UNDE R § 34–101 OF THE STATE PERSONNEL AND PENSIONS 24
221-ARTICLE AN AMOUNT , UP TO A MAXIMUM OF $25,000,000, THAT IS EQUAL TO 25% 25
222-OF THE AMOUNT BY WHI CH THE UNAPPROPR IATED GENERAL FUND SURPLUS AS OF 26
223-JUNE 30 OF THE SECOND PRECED ING FISCAL YEAR EXCE EDS $10,000,000; AND 27
224-
225- 4. TO THE ACCOUNT EQUAL TO THE AMOUNT BY WHICH 28
226-THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 29
227-PRECEDING FISCAL YEA R EXCEEDS $10,000,000, LESS THE AMOUNT OF T HE 30
228-APPROPRIATIONS UNDER ITEMS 1 THROUGH 3 OF THIS ITEM. 31
229-
230- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 32
231-1, 2022. 33
232-
233-
194+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 4
195+1, 2022. 5
234196