LAWRENCE J. HOGAN, JR., Governor Ch. 391
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Chapter 391
(Senate Bill 885)
AN ACT concerning
Maryland Technology Development Corporation – Maryland Equity Investment
Fund – Established
FOR the purpose of establishing the Maryland Equity Investment Fund in the Maryland
Technology Development Corporation; providing for the investment of certain
General Fund surplus in certain private equity and venture capital in the State for
a certain purpose through the Fund; altering, for a certain fiscal year, the
distribution of certain General Fund surplus; and generally relating to investments
in private equity and venture capital in the State and the Maryland Technology
Development Corporation.
BY adding to
Article – Economic Development
Section 10–487 to be under the amended part “Part X. Miscellaneous Funds”
Annotated Code of Maryland
(2018 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 7–311(a)(1) and (2)
Annotated Code of Maryland
(2021 Replacement Volume)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 7–311(j)(1)(iii) and (iv)
Annotated Code of Maryland
(2021 Replacement Volume)
BY adding to
Article – State Finance and Procurement
Section 7–311(j)(1)(v)
Annotated Code of Maryland
(2021 Replacement Volume)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Economic Development
Part X. [Pre–Seed Builder Fund] MISCELLANEOUS FUNDS. Ch. 391 2022 LAWS OF MARYLAND
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10–487.
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “FUND” MEANS THE MARYLAND EQUITY INVESTMENT FUND.
(3) “PRIVATE EQUITY ” MEANS AN ASSET CLASS CONSISTING OF
EQUITY SECURITIES AN D DEBT IN OPERATING COMPANIES THAT ARE N OT PUBLICLY
TRADED ON A STOCK EX CHANGE.
(4) “QUALIFIED BUSINESS ” MEANS A BUSINESS THA T, AT THE TIME
OF THE FIRST INVESTM ENT IN THE BUSINESS :
(I) HAS ITS PRINCIPAL BU SINESS OPERATIONS LOCATED I N
THE STATE AND INTENDS TO MAINTAIN ITS PRINCIP AL BUSINESS OPERATIO NS IN
THE STATE AFTER RECEIVING AN INVESTMENT UNDER THE PROGRAM;
(II) HAS AGREED TO USE TH E QUALIFIED INVESTME NT
PRIMARILY TO:
1. SUPPORT BUSINESS OPE RATIONS IN THE STATE; OR
2. IN THE CASE OF A STA RT–UP COMPANY , ESTABLISH
AND SUPPORT BUSINESS OPERATIONS IN THE STATE;
(III) HAS NOT MORE THAN 250 EMPLOYEES; AND
(IV) IS NOT PRIMARILY ENG AGED IN:
1. RETAIL SALES;
2. REAL ESTATE DEVELOPM ENT;
3. THE BUSINESS OF INSU RANCE, BANKING, OR
LENDING; OR
4. THE PROVISION OF PRO FESSIONAL SERVICES B Y
ACCOUNTANTS , ATTORNEYS, OR PHYSICIANS.
(4) (5) “SEVERAL SYSTEMS ” HAS THE MEANING STAT ED IN §
20–201 OF THE STATE PERSONNEL AND PENSIONS ARTICLE.
LAWRENCE J. HOGAN, JR., Governor Ch. 391
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(5) (6) “VENTURE CAPITAL ” MEANS AN INVESTMENT OF CAPITAL
TO A BUSINESS AT ANY STAGE OF ITS DEVELOP MENT BEFORE THE BUSI NESS MAKES
A PUBLIC OFFERING OF STOCK.
(B) THERE IS A MARYLAND EQUITY INVESTMENT FUND IN THE
CORPORATION .
(C) THE PURPOSE OF THE FUND IS TO ALLOW UNAP PROPRIATED GENERAL
FUND SURPLUS TO BE IN VESTED IN THE STATE A QUALIFIED BUSINESS WITH A GOAL
TO INCREASE PRIVATE EQUITY AND VENTURE C APITAL IN THE STATE, WITH THE
INTEREST EARNINGS AN D INVESTMENT RETURNS REALIZED FROM THOSE
INVESTMENTS TO THE BENEFIT OF TH E PARTICIPANTS OF TH E SEVERAL SYSTEMS .
(D) THE CORPORATION SHALL MAN AGE AND SUPERVISE TH E FUND.
(E) (1) THE FUND IS A SPECIAL, NONLAPSING REVOLVING FUND THAT IS
NOT SUBJECT TO REVER SION UNDER § 7–302 OF THE STATE FINANCE AND
PROCUREMENT ARTICLE.
(2) THE STATE TREASURER SHALL HOLD THE FUND, AND THE
COMPTROLLER SHALL ACC OUNT FOR THE FUND.
(F) THE FUND CONSISTS OF :
(1) MONEY DISTRIBUTED TO THE FUND UNDER § 7–311 OF THE STATE
FINANCE AND PROCUREMENT ARTICLE;
(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; AND
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR
THE BENEFIT OF THE FUND.
(G) THE FUND MAY BE USED ONLY :
(1) FOR THE PURPOSES DES CRIBED IN SUBSECTION (C) OF THIS
SECTION; AND
(2) TO PAY THE COSTS NECESSARY TO A DMINISTER THE FUND.
(H) (1) THE STATE TREASURER SHALL INVES T MONEY IN THE FUND IN
THE SAME MANNER AS O THER STATE MONEY.
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH , ANY INVESTMENT EARNI NGS OF THE FUND AND INVE STMENT Ch. 391 2022 LAWS OF MARYLAND
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RETURNS REALIZED FRO M THE INVESTMENTS MA DE UNDER THIS SECTIO N SHALL
BE CREDITED TO THE A CCUMULATION FUNDS OF THE SEVERAL SYSTEMS
ESTABLISHED UNDER § 21–303 OF THE STATE PERSONNEL AND PENSIONS ARTICLE
AT THE DIRECTION OF THE BOARD OF TRUSTEES FOR THE STATE RETIREMENT AND
PENSION SYSTEM.
(II) THE CORPORATION MAY RETAI N 50% OF INVESTMENT
RETURNS REALIZED FRO M THE INVESTMENTS MA DE UNDER THIS SECTIO N.
Article – State Finance and Procurement
7–311.
(a) (1) In this section the following words have the meanings indicated.
(2) “Account” means the Revenue Stabilization Account.
(j) (1) Except as provided in paragraph (2) of this subsection, for fiscal year
2007 and for each subsequent fiscal year, the Governor shall include in the budget bill an
appropriation:
(iii) for fiscal year 2021, to the Account in the amount of
$291,439,149; [and]
(iv) EXCEPT AS PROVIDED I N ITEM (V) OF THIS PARAGRAPH , for
fiscal year 2022 and each fiscal year thereafter:
1. to the accumulation funds of the State Retirement and
Pension System an amount, up to a maximum of $25,000,000, that is equal to one–quarter
of the amount by which the unappropriated General Fund surplus as of June 30 of the
second preceding fiscal year exceeds $10,000,000;
2. to the Postretirement Health Benefits Trust Fund
established under § 34–101 of the State Personnel and Pensions Article an amount, up to
a maximum of $25,000,000, that is equal to one–quarter of the amount by which the
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year
exceeds $10,000,000; and
3. to the Account equal to the amount by which the
unappropriated General Fund surplus as of June 30 of the second preceding fiscal year
exceeds $10,000,000, less the amount of the appropriations under items 1 and 2 of this item;
AND
(V) FOR FISCAL YEAR 2024:
LAWRENCE J. HOGAN, JR., Governor Ch. 391
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1. TO THE MARYLAND EQUITY INVESTMENT FUND
ESTABLISHED UNDER § 10–487 OF THE ECONOMIC DEVELOPMENT ARTICLE AN
AMOUNT, UP TO $10,000,000, THAT IS EQUAL TO 10% OF THE AMOUNT BY WHI CH
THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND
PRECEDING FISCAL YEA R EXCEEDS $10,000,000;
2. TO THE ACCUMULATION FUNDS OF THE STATE
RETIREMENT AND PENSION SYSTEM AN AMOUNT , UP TO A MAXIMUM OF
$15,000,000, THAT IS EQUAL TO 15% OF THE AMOUNT BY WHI CH THE
UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND
PRECEDING FISCAL YEA R EXCEEDS $10,000,000;
3. TO THE POSTRETIREMENT HEALTH BENEFITS TRUST
FUND ESTABLISHED UNDE R § 34–101 OF THE STATE PERSONNEL AND PENSIONS
ARTICLE AN AMOUNT , UP TO A MAXIMUM OF $25,000,000, THAT IS EQUAL TO 25%
OF THE AMOUNT BY WHI CH THE UNAPPROPRIATE D GENERAL FUND SURPLUS AS OF
JUNE 30 OF THE SECOND PRECED ING FISCAL YEAR EXCE EDS $10,000,000; AND
4. TO THE ACCOUNT EQUAL TO THE AMOUNT BY WHICH
THE UNAPPROPRIATED GENERAL FUND SURPLUS AS OF JUNE 30 OF THE SECOND
PRECEDING FISCAL YEA R EXCEEDS $10,000,000, LESS THE AMOUNT OF T HE
APPROPRIATIONS UNDER ITEMS 1 THROUGH 3 OF THIS ITEM.
SECTION 2. AND BE IT FURT HER ENACTED, That this Act shall take effect July
1, 2022.
Approved by the Governor, May 16, 2022.