An Act To Amend the Laws Governing the Small Enterprise Growth Program
Maine Legislature, Session 130, LD 1800
Committee: Innovation, Development, Economic Advancement and Business
Sponsors: ROBERTS
Amends: 10 MRSA §382, 10 MRSA §383, 10 MRSA §384, 10 MRSA §386, 10 MRSA §388, 10 MRSA §389

Legislative Document
No. 1800
H.P. 1341
House of Representatives, December 9, 2021
An Act To Amend the Laws Governing the Small Enterprise 
Growth Program
Submitted by the Finance Authority of Maine pursuant to Joint Rule 203.
Received by the Clerk of the House on December 7, 2021.  Referred to the Committee on 
Innovation, Development, Economic Advancement and Business pursuant to Joint Rule 308.2 
and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative ROBERTS of South Berwick.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  10 MRSA §382, sub-§4-A is enacted to read:
4-A.  Qualifying venture fund.  "Qualifying venture fund" means a venture capital 
fund managed by an entity other than the board in which the board invests capital from the 
program.
Sec. 2.  10 MRSA §383, sub-§1-B is enacted to read:
1-B.  Investment in other funds.  The board may invest program money in a 
qualifying venture fund subject to an agreement that directs a portion of the money in the 
qualifying venture fund into companies based in the State that employ 50 or fewer 
employees or that have gross sales not exceeding $5,000,000 within the most recent 12 
months for which financial statements are available.
Sec. 3.  10 MRSA §383, sub-§3, as enacted by PL 2009, c. 475, §4, is amended to 
read:
3.  Management fees.  The board may charge and accept management fees for 
management of money placed in program funds the fund or a side fund other than money 
placed directly by the State. The board may approve payment of management fees to a fund 
manager hired to manage a side fund or to a fund manager for a qualifying venture fund 
for which the board is a limited partner.
Sec. 4.  10 MRSA §384, sub-§2, as enacted by PL 1995, c. 699, §3, is amended to 
read:
2.  Chair Officers.  The board shall annually elect a chair, vice-chair and treasurer 
from among its members.
Sec. 5.  10 MRSA §384, sub-§3, as amended by PL 1999, c. 504, §3, is further 
amended to read:
3.  Terms.  The members other than the Commissioner of Economic and Community 
Development or the commissioner's designee serve for 2-year 3-year terms and may be 
reappointed for up to 3 2 consecutive terms.  A member may serve for more than 3 2-year 
3-year terms if the terms are not consecutive.
Sec. 6.  10 MRSA §386, first ¶, as enacted by PL 1995, c. 699, §3, is amended to 
read:
A qualifying venture fund or a qualifying small business may be eligible to receive 
financial assistance under the program. In order to be eligible for financial assistance under 
the program, a qualifying venture fund must meet the requirements of section 383, 
subsection 1-B. In order for a qualifying small business to be eligible for financial 
assistance under the program, a qualifying small business must meet the following criteria 
must be met.
Sec. 7.  10 MRSA §388, sub-§1, as amended by PL 2001, c. 541, §2, is further 
amended to read:
1.  Disbursements.  Initial disbursements may not exceed $500,000 to a qualifying 
venture fund or qualifying small business, including an affiliated entity.  An initial 
disbursement plus any subsequent disbursements in the aggregate to a qualifying venture 
fund or qualifying small business may not exceed an amount equal to 10 percent % of the 
capitalization of the fund from all appropriations received for application to the fund, plus 
any funds received from repayment, interest, royalties, equities or other interests in 
business enterprises, products or services to the extent the repayment, interest, royalties, 
equities or other interests are in excess of the amount initially invested in the business 
making the payments, plus interest accrued on the fund balance and other funds received 
by the board to be applied to the fund.  The board shall report annually by December 20th 
of each year to the joint standing committee of the Legislature having jurisdiction over 
business and economic development matters on all disbursements made under this 
subsection.
Sec. 8.  10 MRSA §389, as enacted by PL 1995, c. 699, §3, is amended to read:
§389.  Cooperation and coordination
The University of Maine System, the Small Business Development Center Program, 
the Maine World International Trade Association and the Maine Science and Technology 
Foundation Center and the Maine Technology Institute shall provide such support and 
assistance as the board may request, within the expertise of each.
Sec. 9. Terms of current board members.  Notwithstanding the Maine Revised 
Statutes, Title 10, section 384, a member of the Small Enterprise Growth Board serving on 
the effective date of this Act:
1. Shall serve a term ending on the 3rd anniversary of the date on which the member's 
term began; and
2. May be appointed to a term to begin immediately following the end of the member's 
term only if the member has not served for 6 consecutive years as of the date of the end of 
the term. 
SUMMARY
This bill amends the laws governing the Small Enterprise Growth Program, also known 
as the Maine Venture Fund, to permit the Small Enterprise Growth Board to invest in 
certain privately managed venture capital funds and makes certain technical changes to the 
statutes.