Maryland 2023 Regular Session

Maryland Senate Bill SB38 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0038
6	6
7	7	SENATE BILL 38
8	8	C8 3lr0936
9	9	SB 252/21 – FIN (PRE–FILED)
10	10	By: Senator Ellis
11	11	Requested: November 18, 2022
12	12	Introduced and read first time: January 11, 2023
13	13	Assigned to: Finance
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Minority Business Enterprise Procurement Contract Financing 2
20	20
21	21	FOR the purpose of establishing a Minority Business Enterprise Procurement Contract 3
22	22	Financing Program in the Maryland Small Business Development Financing 4
23	23	Authority to provide working capital to qualified minority business enterprises in 5
24	24	order to facilitate their ability to enter into and complete performance under State 6
25	25	procurement contracts; authorizing certain loans and grants under certain 7
26	26	circumstances; establishing the Minority Business Enterprise Procurement Contract 8
27	27	Financing Fund as a special, nonlapsing fund; and generally relating to the Minority 9
28	28	Business Enterprise Procurement Contract Financing Program. 10
29	29
30	30	BY repealing and reenacting, without amendments, 11
31	31	Article – Economic Development 12
32	32	Section 5–501 and 5–505 13
33	33	Annotated Code of Maryland 14
34	34	(2018 Replacement Volume and 2022 Supplement) 15
35	35
36	36	BY repealing and reenacting, with amendments, 16
37	37	Article – Economic Development 17
38	38	Section 5–512(c) 18
39	39	Annotated Code of Maryland 19
40	40	(2018 Replacement Volume and 2022 Supplement) 20
41	41
42	42	BY adding to 21
43	43	Article – Economic Development 22
44	44	Section 5–578 through 5–580 to be under the new part “Part VII. Minority Business 23
45	45	Enterprise Procurement Contract Financing Program” 24
46	46	Annotated Code of Maryland 25
47	47	(2018 Replacement Volume and 2022 Supplement) 26
48	48	2 SENATE BILL 38
49	49
50	50
51	51	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
52	52	That the Laws of Maryland read as follows: 2
53	53
54	54	Article – Economic Development 3
55	55
56	56	5–501. 4
57	57
58	58	(a) In this subtitle the following words have the meanings indicated. 5
59	59
60	60	(b) “Authority” means the Maryland Small Business Development Financing 6
61	61	Authority. 7
62	62
63	63	(c) “Financial institution” means: 8
64	64
65	65	(1) a financial institution, as defined in § 1–101 of the Financial 9
66	66	Institutions Article; and 10
67	67
68	68	(2) any other lender that the Authority approves. 11
69	69
70	70	(d) (1) “Loan document” means an instrument or agreement that evidences, 12
71	71	secures, or guarantees a loan. 13
72	72
73	73	(2) “Loan document” includes a note, financing statement, mortgage, 14
74	74	pledge, assignment, loan and security agreement, or guaranty. 15
75	75
76	76	(e) (1) “Working capital” means money used to meet the cash needs of an 16
77	77	operating business entity. 17
78	78
79	79	(2) “Working capital” does not include money used for a capital purchase. 18
80	80
81	81	5–505. 19
82	82
83	83	There is a Maryland Small Business Development Financing Authority in the 20
84	84	Department. 21
85	85
86	86	5–512. 22
87	87
88	88	(c) The Authority shall: 23
89	89
90	90	(1) in its internal functions, follow the procedures of the State that govern 24
91	91	the purchase of office space, supplies, facilities, materials, equipment, and professional 25
92	92	services; 26
93	93
94	94	(2) keep proper records of its accounts; 27
95	95
96	96	(3) keep separate records for: 28
97	97	SENATE BILL 38 3
98	98
99	99
100	100	(i) the Small Business Development Contract Financing Fund 1
101	101	under Part III of this subtitle; 2
102	102
103	103	(ii) the Small Business Development Guaranty Fund under Part IV 3
104	104	of this subtitle; 4
105	105
106	106	(iii) the Equity Participation Investment Program Fund under Part 5
107	107	V of this subtitle; [and] 6
108	108
109	109	(iv) the Small Business Surety Bond Fund under Part VI of this 7
110	110	subtitle; and 8
111	111
112	112	(V) THE MINORITY BUSINESS ENTERPRISE PROCUREMENT 9
113	113	CONTRACT FINANCING PROGRAM AND FUND UNDER PART VII OF THIS SUBTITLE ; 10
114	114	AND 11
115	115
116	116	(4) in accordance with § 2.5–109 of this article, submit a report on its 12
117	117	condition and operations. 13
118	118
119	119	5–576. RESERVED. 14
120	120
121	121	5–577. RESERVED. 15
122	122
123	123	PART VII. MINORITY BUSINESS ENTERPRISE PROCUREMENT CONTRACT 16
124	124	FINANCING PROGRAM. 17
125	125
126	126	5–578. 18
127	127
128	128	(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 19
129	129	INDICATED. 20
130	130
131	131	(B) “FUND” MEANS THE MINORITY BUSINESS ENTERPRISE PROCUREMENT 21
132	132	CONTRACT FINANCING FUND. 22
133	133
134	134	(C) “MINORITY BUSINESS ENT ERPRISE” HAS THE MEANING STAT ED IN § 23
135	135	14–301 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 24
136	136
137	137	(D) “PROGRAM” MEANS THE MINORITY BUSINESS ENTERPRISE 25
138	138	PROCUREMENT CONTRACT FINANCING PROGRAM. 26
139	139
140	140	(E) “QUALIFIED MINORITY BU SINESS ENTERPRISE ” MEANS A MINORITY 27
141	141	BUSINESS ENTERPRISE THAT IS: 28
142	142
143	143	(1) CERTIFIED IN ACCORDA NCE WITH TITLE 14, SUBTITLE 3 OF THE 29
144	144	STATE FINANCE AND PROCUREMENT ARTICLE; AND 30 4 SENATE BILL 38
145	145
146	146
147	147
148	148	(2) HAS A NET WORTH THAT DOES NOT EXCEED $2,000,000. 1
149	149
150	150	5–579. 2
151	151
152	152	(A) THERE IS A MINORITY BUSINESS ENTERPRISE PROCUREMENT 3
153	153	CONTRACT FINANCING PROGRAM IN THE AUTHORITY. 4
154	154
155	155	(B) THE PURPOSE OF THE PROGRAM IS TO PROVIDE WORKING CAPITAL TO 5
156	156	QUALIFIED MINORITY B USINESS ENTERPRISES IN ORDER TO FACILITA TE THEIR 6
157	157	ABILITY TO ENTER INT O AND COMPLETE PERFO RMANCE UNDER STATE 7
158	158	PROCUREMENT CONTRACT S. 8
159	159
160	160	(C) THE AUTHORITY SHALL : 9
161	161
162	162	(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 10
163	163
164	164	(2) PROVIDE LOANS AND AW ARD GRANTS IN ACCORD ANCE WITH THE 11
165	165	PURPOSE OF THE PROGRAM; AND 12
166	166
167	167	(3) ADOPT REGULATIONS TO : 13
168	168
169	169	(I) ENSURE THAT LOANS AN D GRANTS TO QUALIFIED MINORITY 14
170	170	BUSINESS ENTERPRISES CARRY OUT THE PURPOS ES OF THE PROGRAM; 15
171	171
172	172	(II) PROVIDE FOR APPLICAT ION PROCEDURES FOR G RANTS 16
173	173	AND LOANS UNDER THE PROGRAM; 17
174	174
175	175	(III) ATTACH SPECIFIC TERM S TO ANY LOAN OR GRA NT THAT ARE 18
176	176	CONSIDERED NECESSARY TO ENSURE THAT THE P URPOSE OF THE PROGRAM IS 19
177	177	FULFILLED; AND 20
178	178
179	179	(IV) PROVIDE FOR PROCEDUR ES FOR THE REPAYMENT OF 21
180	180	LOANS MADE UNDER THE PROGRAM. 22
181	181
182	182	5–580. 23
183	183
184	184	(A) THERE IS A MINORITY BUSINESS ENTERPRISE PROCUREMENT 24
185	185	CONTRACT FINANCING FUND IN THE AUTHORITY. 25
186	186
187	187	(B) THE AUTHORITY SHALL ADMIN ISTER THE FUND. 26
188	188
189	189	(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 27 SENATE BILL 38 5
190	190
191	191
192	192	SUBJECT TO REVERSION UNDER § 7–302 OF THE STATE FINANCE AND 1
193	193	PROCUREMENT ARTICLE. 2
194	194
195	195	(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 3
196	196	AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 4
197	197
198	198	(D) THE FUND CONSISTS OF : 5
199	199
200	200	(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 6
201	201
202	202	(2) IF THE GENERAL ASSEMBLY ENACTS LEGIS LATION 7
203	203	IMPLEMENTING SPORTS AND EVENT WAGERING I N THE STATE, AN AMOUNT EQUAL 8
204	204	TO 10% OF ANY PROCEEDS RECEIVED BY THE STATE FROM SPORTS AND EVENT 9
205	205	WAGERING IN THE STATE; 10
206	206
207	207	(3) FEDERAL MONEY ALLOCA TED OR GRANTED TO TH E FUND; 11
208	208
209	209	(4) REPAYMENTS AND PREPA YMENTS OF PRINCIPAL AND INTEREST 12
210	210	ON LOANS MADE FROM T HE FUND; AND 13
211	211
212	212	(5) ANY OTHER MONEY FROM ANY SOURCE ACCEPTED FOR THE 14
213	213	BENEFIT OF THE FUND. 15
214	214
215	215	(E) THE FUND MAY BE USED ONLY FOR: 16
216	216
217	217	(1) LOANS AND GRANTS PRO VIDED UNDER THE PROGRAM; AND 17
218	218
219	219	(2) ADMINISTRATIVE EXPEN SES OF THE PROGRAM. 18
220	220
221	221	(F) (1) THE STATE TREASURER SHALL INVES T THE MONEY IN THE FUND 19
222	222	IN THE SAME MANNER AS OTH ER STATE MONEY MAY BE IN VESTED. 20
223	223
224	224	(2) ANY INVESTMENT EARNIN GS OF THE FUND SHALL BE CREDITE D 21
225	225	TO THE GENERAL FUND OF THE STATE. 22
226	226
227	227	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 23
228	228	October 1, 2023. 24
229	229