EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0885*
SENATE BILL 885
C8 2lr3138
By: Senators Griffith and Elfreth
Introduced and read first time: February 7, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Maryland Technology Development Corporation – Maryland Equity Investment 2
Fund – Established 3
FOR the purpose of establishing the Maryland Equity Investment Fund in the Maryland 4
Technology Development Corporation; providing for the investment of certain 5
General Fund surplus in certain private equity and venture capital in the State for 6
a certain purpose through the Fund; altering, for a certain fiscal year, the 7
distribution of certain General Fund surplus; and generally relating to investments 8
in private equity and venture capital in the State and the Maryland Technology 9
Development Corporation. 10
BY adding to 11
Article – Economic Development 12
Section 10–487 to be under the amended part “Part X. Miscellaneous Funds” 13
Annotated Code of Maryland 14
(2018 Replacement Volume and 2021 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – State Finance and Procurement 17
Section 7–311(a)(1) and (2) 18
Annotated Code of Maryland 19
(2021 Replacement Volume) 20
BY repealing and reenacting, with amendments, 21
Article – State Finance and Procurement 22
Section 7–311(j)(1)(iii) and (iv) 23
Annotated Code of Maryland 24
(2021 Replacement Volume) 25
BY adding to 26
Article – State Finance and Procurement 27 2 SENATE BILL 885
Section 7–311(j)(1)(v) 1
Annotated Code of Maryland 2
(2021 Replacement Volume) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Economic Development 6
Part X. [Pre–Seed Builder Fund] MISCELLANEOUS FUNDS. 7
10–487. 8
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10
(2) “FUND” MEANS THE MARYLAND EQUITY INVESTMENT FUND. 11
(3) “PRIVATE EQUITY ” MEANS AN ASSET CLASS CONSISTING OF 12
EQUITY SECURITIES AN D DEBT IN OPERATING COMPANIES THAT ARE N OT PUBLICLY 13
TRADED ON A STOCK EX CHANGE. 14
(4) “SEVERAL SYSTEMS ” HAS THE MEANING STAT ED IN § 20–201 OF 15
THE STATE PERSONNEL AND PENSIONS ARTICLE. 16
(5) “VENTURE CAPITAL” MEANS AN INVESTMENT OF CAPITAL TO A 17
BUSINESS AT ANY STAG E OF ITS DEVELOPMENT BEFORE THE BUSINESS MAKES A 18
PUBLIC OFFERING OF S TOCK. 19
(B) THERE IS A MARYLAND EQUITY INVESTMENT FUND IN THE 20
CORPORATION . 21
(C) THE PURPOSE OF THE FUND IS TO ALLOW UNAPPROPRIATED GENERAL 22
FUND SURPLUS TO BE INVESTED IN TH E STATE WITH A GOAL TO INCREASE PRIVATE 23
EQUITY AND VENTURE CAPITAL IN THE STATE, WITH THE INTEREST EA RNINGS AND 24
INVESTMENT RETURNS R EALIZED FROM THOSE I NVESTMENTS TO THE BENEFIT OF 25
THE PARTICIPANTS OF THE SEVERAL SYSTEMS . 26
(D) THE CORPORATION SHALL MAN AGE AND SUPERVISE TH E FUND. 27
(E) (1) THE FUND IS A SPECIAL, NONLAPSING REVOLVING FUND THAT IS 28
NOT SUBJECT TO REVER SION UNDER § 7–302 OF THE STATE FINANCE AND 29
PROCUREMENT ARTICLE. 30
SENATE BILL 885 3
(2) THE STATE TREASURER SHALL HOLD THE FUND, AND THE 1
COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
(F) THE FUND CONSISTS OF : 3
(1) MONEY DISTRIBUTED TO THE FUND UNDER § 7–311 OF THE STATE 4
FINANCE AND PROCUREMENT ARTICLE; 5
(2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 6
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 7
THE BENEFIT OF THE FUND. 8
(G) THE FUND MAY BE USED ONLY: 9
(1) FOR THE PURPOSES DESCRIB ED IN SUBSECTION (C) OF THIS 10
SECTION; AND 11
(2) TO PAY THE COSTS NEC ESSARY TO ADMINISTER THE FUND. 12
(H) (1) THE STATE TREASURER SHALL INVES T MONEY IN THE FUND IN 13
THE SAME MANNER AS O THER STATE MONEY. 14
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 15
PARAGRAPH , ANY INVESTMENT EARNIN GS OF THE FUND AND INVESTMENT 16
RETURNS REALIZED FROM THE INVESTMENTS MADE UNDER THIS SECTION SHALL 17
BE CREDITED TO THE ACCUMULATION FUN DS OF THE SEVERAL SY STEMS 18
ESTABLISHED UNDER § 21–303 OF THE STATE PERSONNEL AND PENSIONS ARTICLE 19
AT THE DIRECTION OF THE BOARD OF TRUSTEES FOR THE STATE RETIREMENT AND 20
PENSION SYSTEM. 21
(II) THE CORPORATION MAY RETAI N 50% OF INVESTMENT 22
RETURNS REALIZED FRO M THE INVESTMENTS MA DE UNDER THIS SECTION . 23
Article – State Finance and Procurement 24
7–311. 25
(a) (1) In this section the following words have the meanings indicated. 26
(2) “Account” means the Revenue Stabilization Account. 27
(j) (1) Except as provided in paragraph (2) of this subsection, for fiscal year 28
2007 and for each subsequent fiscal year, the Governor shall include in the budget bill an 29 4 SENATE BILL 885
appropriation: 1
(iii) for fiscal year 2021, to the Account in the amount of 2
$291,439,149; [and] 3
(iv) EXCEPT AS PROVIDED I N ITEM (V) OF THIS PARAGRAPH , for 4
fiscal year 2022 and each fiscal year thereafter: 5
1. to the accumulation funds of the State Retirement and 6
Pension System an amount, up to a maximum of $25,000,000, that is equal to one–quarter 7
of the amount by which the unappropriated General Fund surplus as of June 30 of the 8
second preceding fiscal year exceeds $10,000,000; 9
2. to the Postretirement Health Benefits Trust Fund 10
established under § 34–101 of the State Personnel and Pensions Article an amount, up to 11
a maximum of $25,000,000, that is equal to one–quarter of the amount by which the 12
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 13
exceeds $10,000,000; and 14
3. to the Account equal to the amount by which the 15
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 16
exceeds $10,000,000, less the amount of the appropriations under items 1 and 2 of this item; 17
AND 18
(V) FOR FISCAL YEAR 2024: 19
1. TO THE MARYLAND EQUITY INVESTMENT FUND 20
ESTABLISHED UNDER § 10–487 OF THE ECONOMIC DEVELOPMENT ARTICLE AN 21
AMOUNT, UP TO $10,000,000, THAT IS EQUAL TO 10% OF THE AMOUNT BY WHI CH 22
THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 23
PRECEDING FISCAL YE AR EXCEEDS $10,000,000; 24
2. TO THE ACCUMULATION FUNDS OF THE STATE 25
RETIREMENT AND PENSION SYSTEM AN AMOUNT , UP TO A MAXIMUM OF 26
$15,000,000, THAT IS EQUAL TO 15% OF THE AMOUNT BY WHI CH THE 27
UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 28
PRECEDING FISCAL YEA R EXCEEDS $10,000,000; 29
3. TO THE POSTRETIREMENT HEALTH BENEFITS TRUST 30
FUND ESTABLISHED UNDE R § 34–101 OF THE STATE PERSONNEL AND PENSIONS 31
ARTICLE AN AMOUNT , UP TO A MAXIMUM OF $25,000,000, THAT IS EQUAL TO 25% 32
OF THE AMOUNT BY WHI CH THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF 33
JUNE 30 OF THE SECOND PRECED ING FISCAL YEAR EXCE EDS $10,000,000; AND 34
4. TO THE ACCOUNT EQUAL TO THE AMOUNT BY WHICH 35 SENATE BILL 885 5
THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 1
PRECEDING FISCAL YE AR EXCEEDS $10,000,000, LESS THE AMOUNT OF T HE 2
APPROPRIATIONS UNDER ITEMS 1 THROUGH 3 OF THIS ITEM. 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 4
1, 2022. 5