2023 Maryland Statutes › Economic Development › Division I - Secretary of Commerce and Department of Commerce › Title 5 - Economic Development and Financial Assistance Programs › Subtitle 15 - Small, Minority, and Women-Owned Businesses Account › Section 5-1501 - Small, Minority, and Women-Owned Businesses Account Established. [Effective Until July 1, 2024]

(a)    There is a Small, Minority, and Women–Owned Businesses Account under the authority of the Department.
(b)    (1)    (i)    The Account shall receive money as required under § 9–1A–27 of the State Government Article.
(ii)    The Account shall receive money from the Strategic Energy Investment Fund as required under § 9–20B–05 of the State Government Article.
(2)    Money in the Account shall be invested and reinvested by the Treasurer and interest and earnings shall accrue to the Account.
(3)    The Comptroller shall:
(i)    account for the Account; and
(ii)    on a properly approved transmittal prepared by the Department, issue a warrant to pay out money from the Account in the manner provided under this section.
(4)    The Account is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(5)    Expenditures from the Account shall only be made on a properly approved transmittal prepared by the Department as provided under subsection (c) of this section.
(c)    (1)    In this subsection, “eligible fund manager”:
(i)    means an entity that has significant financial or investment experience, under criteria developed by the Department; and
(ii)    includes an entity that the Department designates to manage funds received under subsection (b)(1)(i) of this section.
(2)    Subject to the provisions of paragraph (3) of this subsection, the Department shall make grants to eligible fund managers to provide investment capital and loans to small, minority, and women–owned businesses in the State.
(3)    Except for money received from the Strategic Energy Investment Fund, the Department shall ensure that eligible fund managers allocate at least 50% of the funds from this Account to small, minority, and women–owned businesses in the jurisdictions and communities surrounding a video lottery facility.
(d)    (1)    Any money received from the Strategic Energy Investment Fund shall be used to benefit small, minority, women–owned, and veteran–owned businesses in the clean energy industry in the State.
(2)    The Department shall make grants to eligible fund managers to provide investment capital, including direct equity investments and similar investments and loans to small, minority, women–owned, and veteran–owned businesses in the clean energy industry in the State.
(e)    Fund managers receiving grants under this section shall:
(1)    keep proper records of funds and accounts;
(2)    provide an annual report to the Department on investment capital and loans made pursuant to subsection (c) of this section; and
(3)    be subject to audit by the Office of Legislative Audits of the Department of Legislative Services.
(f)    (1)    Subject to paragraph (2) of this subsection, an eligible fund manager may use money from grants received under this section to pay expenses for administrative, actuarial, legal, and technical services.
(2)    The Department shall set the maximum amount of grant money that each eligible fund manager may use under paragraph (1) of this subsection.
(g)    (1)    Subject to paragraphs (2) through (4) of this subsection, an eligible fund manager may use money from a grant received under subsection (d)(1) of this section to pay ordinary and reasonable expenses for administrative, actuarial, legal, marketing, and technical services and management fees.
(2)    The Department shall:
(i)    maintain all money received from the Strategic Energy Investment Fund in a single account; and
(ii)    make grant allocations to an eligible fund manager as the manager advises the Department that the manager has approved and prepared to fund an investment or a loan.
(3)    Any allocation that the Department makes to an eligible fund manager from the Strategic Energy Investment Fund shall include:
(i)    the amount of the investment or loan; and
(ii)    up to an additional 3% of the total investment or loan commitment amount as a management fee for the benefit and compensation of the eligible fund manager.
(4)    An eligible fund manager that receives an allocation from the Strategic Energy Investment Fund shall retain for the manager’s benefit:
(i)    all management fees paid by the Department; and
(ii)    all interest earned from a loan made by the eligible fund manager under this subsection.
(h)    (1)    Notwithstanding any provisions in this section to the contrary, this subsection applies to businesses in areas of the State that are:
(i)    declared to be federal disaster areas;
(ii)    subject to a federal declaration of emergency; or
(iii)    subject to an official declaration of emergency by the Governor.
(2)    In an area of the State described in paragraph (1) of this subsection, an eligible fund manager may:
(i)    provide financial assistance under this section to a small, minority, or women–owned business in the form of a grant; or
(ii)    convert to a grant part or all of a loan that was provided to a small, minority, or women–owned business before the area was declared a federal disaster area or became subject to a declaration of emergency.
(3)    (i)    The amount of any grant or loan converted to a grant under this subsection may not exceed $50,000 for a single business.
(ii)    The aggregate total of financial assistance provided in the form of grants and loans converted to grants under this subsection may not exceed $10,000,000 in a fiscal year.
(i)    The Legislative Auditor shall audit the utilization of the funds that are allocated to small, minority, and women–owned businesses by eligible fund managers under subsection (c)(3) of this section during an audit of the applicable State unit as provided in § 2–1220 of the State Government Article.
(j)    In accordance with § 2.5–109 of this article, the Department shall submit a report on amounts received by and expended by the Strategic Energy Investment Fund.