EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0302*
SENATE BILL 302
C8 5lr2065
CF 5lr1879
By: Senator Lam
Introduced and read first time: January 13, 2025
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Maryland Small Business Innovation Research and Technology Transfer 2
Incentive Program – Alterations 3
FOR the purpose of repealing certain provisions of law specifying certain limitations on 4
awards or investments provided to certain small businesses under the Maryland 5
Small Business Innovation Research and Technology Transfer Incentive Program; 6
and generally relating to the Maryland Small Business Innovation Research and 7
Technology Transfer Incentive Program. 8
BY repealing and reenacting, without amendments, 9
Article – Economic Development 10
Section 10–474(a) and (b) 11
Annotated Code of Maryland 12
(2024 Replacement Volume and 2024 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Economic Development 15
Section 10–476 16
Annotated Code of Maryland 17
(2024 Replacement Volume and 2024 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Economic Development 21
10–474. 22
2 SENATE BILL 302
(a) There is a Maryland Small Business Innovation Research and Technology 1
Transfer Incentive Program. 2
(b) The Corporation shall administer the Program. 3
10–476. 4
(a) An applicant shall submit an application for a Program award or investment 5
on the form that the Corporation requires. 6
(b) The Program shall review the application and all supporting materials to 7
evaluate whether the applicant qualifies for an award or investment from the Program. 8
(c) (1) Subject to the availability of money in the Fund and paragraph (2) of 9
this subsection, the Program may provide to an eligible small business an award or 10
investment to match in part a small business innovation research award or small business 11
technology transfer award. 12
(2) The Program shall prioritize providing awards and investments to 13
eligible small businesses that are engaged in research and development activities that 14
assist in the prevention of, preparedness for, or response to a public health crisis in the 15
State. 16
(d) [Except as provided in subsection (f) of this section, a small business that 17
receives an award or investment for a Phase I small business innovation research award 18
or small business technology transfer award shall receive an award or investment in an 19
amount that is the lesser of: 20
(1) 25% of the Phase I small business innovation research award or small 21
business technology transfer award; or 22
(2) $25,000. 23
(e) Except as provided in subsection (f) of this section, a small business that 24
receives an award or investment for a Phase II small business innovation research award 25
or small business technology transfer award shall receive an award or investment in an 26
amount that is the lesser of: 27
(1) 25% of the Phase II small business innovation research award or small 28
business technology transfer award; or 29
(2) $75,000. 30
(f) On the recommendation of the Executive Director, the Board may approve an 31
award or investment in a small business in excess of the limitations specified under 32
subsections (d) and (e) of this section if the Board determines that the award is necessary 33
to better serve the community and the purposes of the Program. 34 SENATE BILL 302 3
(g) During each fiscal year: 1
(1) the Corporation may not provide more than 20 awards or investments 2
in accordance with subsection (d) of this section or more than 10 awards or investments in 3
accordance with subsection (e) of this section; and 4
(2) a small business may not receive more than one award or investment. 5
(h)] A small business may not receive: 6
(1) MORE THAN ONE AWARD OR INVESTMENT DURING EACH FISCAL 7
YEAR; AND 8
(2) more than three awards or investments under this part. 9
[(i)] (E) (1) Subject to paragraph (2) of this subsection, each quarter, the 10
Corporation shall provide awards and investments on a competitive basis to eligible small 11
businesses. 12
(2) In providing an award or investment under this section, the 13
Corporation: 14
(i) shall consider: 15
1. the impact of the award or investment on the small 16
business; and 17
2. how the small business will utilize the award or 18
investment toward commercialization of the research conducted by the small business; and 19
(ii) may consider any additional criteria specified by the Corporation 20
in regulation. 21
[(j)] (F) The Program shall coordinate with comparable State and county 22
programs to: 23
(1) conduct marketing and outreach, including conducting joint workshops, 24
online training opportunities, and outreach to economically disadvantaged small 25
businesses, minority–owned small businesses, women–owned small businesses, rural small 26
businesses, and first–time small business innovation research award or small business 27
technology transfer award applicants; and 28
(2) provide assistance to eligible businesses under this part. 29
4 SENATE BILL 302
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2025. 2