EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0885*
SENATE BILL 885
C8 2lr3138
CF HB 1479
By: Senators Griffith and Elfreth
Introduced and read first time: February 7, 2022
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 4, 2022
CHAPTER ______
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 2 SENATE BILL 885
Section 7–311(j)(1)(iii) and (iv) 1
Annotated Code of Maryland 2
(2021 Replacement Volume) 3
BY adding to 4
Article – State Finance and Procurement 5
Section 7–311(j)(1)(v) 6
Annotated Code of Maryland 7
(2021 Replacement Volume) 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – Economic Development 11
Part X. [Pre–Seed Builder Fund] MISCELLANEOUS FUNDS. 12
10–487. 13
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15
(2) “FUND” MEANS THE MARYLAND EQUITY INVESTMENT FUND. 16
(3) “PRIVATE EQUITY ” MEANS AN ASSET CLASS CONSISTING OF 17
EQUITY SECURITIES AN D DEBT IN OPERATING COMPANIES THAT ARE N OT PUBLICLY 18
TRADED ON A STOCK EX CHANGE. 19
(4) “QUALIFIED BUSINESS ” MEANS A BUSINESS THA T, AT THE TIME 20
OF THE FIRST INVESTM ENT IN THE BUSINESS : 21
(I) HAS ITS PRINCIPAL BUSINESS O PERATIONS LOCATED IN 22
THE STATE AND INTENDS TO MAINTAIN ITS PRINCIP AL BUSINESS OPERATIO NS IN 23
THE STATE AFTER RECEIVING AN INVESTMENT UNDER THE PROGRAM; 24
(II) HAS AGREED TO USE TH E QUALIFIED INVESTME NT 25
PRIMARILY TO: 26
1. SUPPORT BUS INESS OPERATIONS IN THE STATE; OR 27
2. IN THE CASE OF A STA RT–UP COMPANY , ESTABLISH 28
AND SUPPORT BUSINESS OPERATIONS IN THE STATE; 29
(III) HAS NOT MORE THAN 250 EMPLOYEES; AND 30
SENATE BILL 885 3
(IV) IS NOT PRIMARILY ENG AGED IN: 1
1. RETAIL SALES; 2
2. REAL ESTATE DEVELOPMENT ; 3
3. THE BUSINESS OF INSU RANCE, BANKING, OR 4
LENDING; OR 5
4. THE PROVISION OF PRO FESSIONAL SERVICES B Y 6
ACCOUNTANTS , ATTORNEYS, OR PHYSICIANS. 7
(4) (5) “SEVERAL SYSTEMS ” HAS THE MEANING STAT ED IN § 8
20–201 OF THE STATE PERSONNEL AND PENSIONS ARTICLE. 9
(5) (6) “VENTURE CAPITAL ” MEANS AN INVESTMENT OF CAPITAL 10
TO A BUSINESS AT ANY STAGE OF ITS DEVELOP MENT BEFORE THE BUSI NESS MAKES 11
A PUBLIC OFFERING OF STOCK. 12
(B) THERE IS A MARYLAND EQUITY INVESTMENT FUND IN THE 13
CORPORATION . 14
(C) THE PURPOSE OF THE FUND IS TO ALLOW UNAP PROPRIATED GENERAL 15
FUND SURPLUS TO BE IN VESTED IN THE STATE A QUALIFIED BUSINESS WITH A GOAL 16
TO INCREASE PRIVATE EQUITY AND VENTURE C APITAL IN THE STATE, WITH THE 17
INTEREST EARNINGS AN D INVESTMENT RETURNS REALIZED FR OM THOSE 18
INVESTMENTS TO THE B ENEFIT OF THE PARTIC IPANTS OF THE SEVERA L SYSTEMS. 19
(D) THE CORPORATION SHALL MAN AGE AND SUPERVISE TH E FUND. 20
(E) (1) THE FUND IS A SPECIAL, NONLAPSING REVOLVING FUND THAT IS 21
NOT SUBJECT TO REVER SION UNDER § 7–302 OF THE STATE FINANCE AND 22
PROCUREMENT ARTICLE. 23
(2) THE STATE TREASURER SHALL HOLD THE FUND, AND THE 24
COMPTROLLER SHALL ACC OUNT FOR THE FUND. 25
(F) THE FUND CONSISTS OF : 26
(1) MONEY DISTRIBUTED TO THE FUND UNDER § 7–311 OF THE STATE 27
FINANCE AND PROCUREMENT ARTICLE; 28
(2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 29
4 SENATE BILL 885
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 1
THE BENEFIT OF THE FUND. 2
(G) THE FUND MAY BE USED ONLY : 3
(1) FOR THE PURPOSES DES CRIBED IN SUBSECTION (C) OF THIS 4
SECTION; AND 5
(2) TO PAY THE COSTS NEC ESSARY TO ADMINISTER THE FUND. 6
(H) (1) THE STATE TREASURER SHALL INVES T MONEY IN THE FUND IN 7
THE SAME MANNER AS O THER STATE MONEY. 8
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 9
PARAGRAPH , ANY INVESTMENT EARNI NGS OF THE FUND AND INVESTMENT 10
RETURNS REALIZED FRO M THE INVESTMENTS MA DE UNDER THIS SECTIO N SHALL 11
BE CREDITED TO THE A CCUMULATION FUNDS OF THE SEVERAL SYSTEMS 12
ESTABLISHED UNDER § 21–303 OF THE STATE PERSONNEL AND PENSIONS ARTICLE 13
AT THE DIRECTION OF THE BOARD OF TRUSTEES FOR THE STATE RETIREMENT AND 14
PENSION SYSTEM. 15
(II) THE CORPORATION MAY RETAI N 50% OF INVESTMENT 16
RETURNS REALIZED FRO M THE INVESTMENTS MA DE UNDER THIS SECTIO N. 17
Article – State Finance and Procurement 18
7–311. 19
(a) (1) In this section the following words have the meanings indicated. 20
(2) “Account” means the Revenue Stabilization Account. 21
(j) (1) Except as provided in paragraph (2) of this subsection, for fiscal year 22
2007 and for each subsequent fiscal year, the Governor shall include in the budget bill an 23
appropriation: 24
(iii) for fiscal year 2021, to the Account in the amount of 25
$291,439,149; [and] 26
(iv) EXCEPT AS PROVIDED I N ITEM (V) OF THIS PARAGR APH, for 27
fiscal year 2022 and each fiscal year thereafter: 28
1. to the accumulation funds of the State Retirement and 29
Pension System an amount, up to a maximum of $25,000,000, that is equal to one–quarter 30 SENATE BILL 885 5
of the amount by which the unappropriated General Fund surplus as of June 30 of the 1
second preceding fiscal year exceeds $10,000,000; 2
2. to the Postretirement Health Benefits Trust Fund 3
established under § 34–101 of the State Personnel and Pensions Article an amount, up to 4
a maximum of $25,000,000, that is equal to one–quarter of the amount by which the 5
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 6
exceeds $10,000,000; and 7
3. to the Account equal to the amount by which the 8
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year 9
exceeds $10,000,000, less the amount of the appropriations under items 1 and 2 of this item; 10
AND 11
(V) FOR FISCAL YEAR 2024: 12
1. TO THE MARYLAND EQUITY INVESTMENT FUND 13
ESTABLISHED UNDER § 10–487 OF THE ECONOMIC DEVELOPMENT ARTICLE AN 14
AMOUNT, UP TO $10,000,000, THAT IS EQUAL TO 10% OF THE AMOUNT BY WHI CH 15
THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 16
PRECEDING FISCAL YEA R EXCEEDS $10,000,000; 17
2. TO THE ACCUMULATION FUNDS O F THE STATE 18
RETIREMENT AND PENSION SYSTEM AN AMOUNT , UP TO A MAXIMUM OF 19
$15,000,000, THAT IS EQUAL TO 15% OF THE AMOUNT BY WHI CH THE 20
UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 21
PRECEDING FISCAL YEA R EXCEEDS $10,000,000; 22
3. TO THE POSTRETIREMENT HEALTH BENEFITS TRUST 23
FUND ESTABLISHED UNDE R § 34–101 OF THE STATE PERSONNEL AND PENSIONS 24
ARTICLE AN AMOUNT , UP TO A MAXIMUM OF $25,000,000, THAT IS EQUAL TO 25% 25
OF THE AMOUNT BY WHI CH THE UNAPPROPRIATE D GENERAL FUND SURPLUS AS OF 26
JUNE 30 OF THE SECOND PRECEDING FISCAL YEAR EXCEEDS $10,000,000; AND 27
4. TO THE ACCOUNT EQUAL TO THE AMOUNT BY WHICH 28
THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND 29
PRECEDING FISCAL YEA R EXCEEDS $10,000,000, LESS THE AMOUNT OF T HE 30
APPROPRIATIO NS UNDER ITEMS 1 THROUGH 3 OF THIS ITEM. 31
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 32
1, 2022. 33