reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part V - Maryland Innovation Initiative › Section 10-458 - Functions

(a)    The Initiative may:
(1)    provide grant funding or equity investment financing to a qualifying university, qualifying university–based entrepreneur, or other start–up entity, to promote the commercialization of technology developed in whole or in part by a qualifying university;
(2)    pursue grants, other funds, and in–kind contributions for the Initiative or its qualifying universities;
(3)    develop and implement guidelines for technology transfer; and
(4)    identify projects at qualifying universities that may be viable for commercialization.
(b)    The grant funding or equity investment financing in subsection (a) of this section shall be awarded:
(1)    to support pre–commercial research on intellectual property to increase the likelihood of commercializing the intellectual property;
(2)    to defray costs of evaluating the feasibility of a technology becoming commercialized through a start–up company;
(3)    to defray the direct costs of developing early stage technology through a start–up entity;
(4)    to assess intellectual property issues, including licensing and patents; or
(5)    for any other costs that the Initiative’s participating members determine are appropriate to promote technology transfer and commercialization in the State.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part V - Maryland Innovation Initiative › Section 10-459 - Proposals for Granting Funding

(a)    Only qualifying universities may submit proposals for grant funding from the Initiative.
(b)    The participating members of the Initiative may establish a committee composed of experts in the areas of research considered for commercialization.
(c)    The Initiative may establish the committee under service contracts with independent reviewers.
(d)    The committee shall:
(1)    review, evaluate, and rate proposals for funding from the Initiative, based on:
(i)    the viability of commercializing the technology; and
(ii)    the relative costs associated with commercializing the technology; and
(2)    make recommendations to the participating members of the Initiative for the award and disbursement of grants from the Initiative.
(e)    A member of the committee is not eligible to receive funding from the Initiative.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part V - Maryland Innovation Initiative › Section 10-460 - Annual Reports

The Corporation shall include, as part of its annual report to the Governor and the General Assembly under § 10–415 of this subtitle, a detailed description of:
(1)    the number of technology transfer transactions or projects for which the Initiative provided funding;
(2)    the amount and source of funds the Initiative identified to assist in the development of technologies;
(3)    the qualifying universities or entities for which funding was awarded;
(4)    the commercial value of technology that was transferred to the commercial industry; and
(5)    any recommendations for improving the overall effectiveness of technology transfer through the Initiative.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part V - Maryland Innovation Initiative › Section 10-461 - Maryland Innovation Initiative University Partnership Pilot Program -- Implementation and Administration -- Qualified Participants -- Funding

// EFFECTIVE UNTIL JUNE 30, 2024 PER CHAPTER 697 OF 2021 //
(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Eligible university” means Bowie State University and Frostburg State University.
(3)    “Pilot Program” means the Maryland Innovation Initiative University Partnership Pilot Program.
(b)    (1)    There is a Maryland Innovation Initiative University Partnership Pilot Program.
(2)    The purpose of the Pilot Program is to expand opportunities for technology validation, entrepreneurial development, and industry engagement at eligible universities.
(c)    (1)    The Initiative shall implement and administer the Pilot Program.
(2)    The Initiative shall collaborate with an eligible university to identify and support industry partnerships and commercialization opportunities.
(d)    To qualify for participation in the Pilot Program, each eligible university shall pay an annual contribution of $50,000.
(e)    (1)    Only an eligible university may submit project proposals for funding under the Pilot Program.
(2)    To qualify for a grant under the Pilot Program, a project proposal must:
(i)    support the creation of a new technology–based business in Maryland;
(ii)    advance technology toward commercialization of a product or service;
(iii)    foster entrepreneurial development at the eligible university;
(iv)    create an opportunity for meaningful economic impact in the region around the eligible university; or
(v)    foster collaboration between the eligible university and an industry partner, including:
1.    product development with commercialization potential; and
2.    matching funds provided by the industry partner.
(f)    (1)    The Initiative shall develop criteria to review, evaluate, and rate project proposals for funding under the Pilot Program.
(2)    The Executive Director shall distribute grants to projects based on the criteria developed in accordance with paragraph (1) of this subsection.
(g)    (1)    For fiscal years 2023 and 2024, the Governor shall include in the annual budget bill an appropriation of $500,000 for the Pilot Program.
(2)    The funding provided in this subsection shall be used to supplement, not supplant, any funds that would otherwise be provided to the Initiative.
(h)    In addition to information on the Initiative included in the annual report of the Corporation under § 10–415 of this subtitle, on or before July 1, 2024, the Corporation shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the implementation of the Pilot Program.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part VI - Cybersecurity Investment Fund › Section 10-463 - Definitions

(a)    In this part the following words have the meanings indicated.
(b)    “Commercialization” means the process of introducing a new product or technology into the market.
(c)    (1)    “Cybersecurity” means information technology security.
(2)    “Cybersecurity” includes the protection of networked devices, networks, programs, and data from unintended or unauthorized access, change, or destruction.
(d)    “Fund” means the Cybersecurity Investment Fund established under § 10–464 of this subtitle.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part VI - Cybersecurity Investment Fund › Section 10-464 - Cybersecurity Investment Fund

(a)    There is a Cybersecurity Investment Fund.
(b)    The purpose of the Fund is to:
(1)    provide seed and early–stage funding for emerging technology companies located in the State focused on cybersecurity and cybersecurity technology product development;
(2)    maximize Corporation investments by supporting funded emerging technology companies to enable corporate growth and to obtain third–party downstream funding for commercialization; and
(3)    leverage Corporation investments in early–stage cybersecurity companies by taking advantage of economic development opportunities throughout the State.
(c)    The Corporation shall administer the Fund.
(d)    The Fund consists of:
(1)    appropriations as provided in the State budget;
(2)    money made available to the Fund through federal programs or private contributions;
(3)    repayment of capital or principal or payment of interest on any debt or equity investments from the Fund;
(4)    investment earnings of the Fund; and
(5)    any other money accepted by the Corporation for the Fund.
(e)    The Corporation may use the Fund to:
(1)    carry out the purposes of the Fund related to the commercialization of cybersecurity research and cybersecurity technology product development in accordance with the terms of this part; and
(2)    pay the costs necessary to implement this part and to administer the Fund.
(f)    (1)    The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(2)    The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(3)    The State Treasurer shall invest the money in the Fund in the same manner as other State money may be invested.
(4)    Any investment earnings of the Fund shall be credited to the Fund.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part VI - Cybersecurity Investment Fund › Section 10-465 - Reports

The Corporation shall include, as part of its annual report to the Governor and the General Assembly under § 10–415 of this subtitle, a detailed description of:
(1)    the number of Fund proposals received by the Corporation during the preceding fiscal year;
(2)    the number of Fund transactions or projects for which the Corporation provided funding during the preceding fiscal year;
(3)    the amount of money awarded by the Fund in the preceding fiscal year; and
(4)    the total amount of third–party downstream funding of completed investments since Fund inception.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part VII - Enterprise Fund › Section 10-469 - Enterprise Fund

(a)    There is an Enterprise Fund in the Corporation.
(b)    The Corporation may use the Fund to:
(1)    make a grant or loan, at the rate of interest set by the Corporation;
(2)    provide equity investment financing for a qualified business;
(3)    guarantee a loan, equity, investment, or other private financing to expand the capital resources of a qualified business;
(4)    purchase advisory services and technical assistance to better support economic development;
(5)    pay the Corporation’s obligations to a venture firm under the Invest Maryland Program, as provided under § 10–4A–20(c)(2)(i) of this title; and
(6)    pay the administrative, legal, and actuarial expenses of the Corporation.
(c)    The Corporation shall manage and supervise the Fund.
(d)    (1)    The Fund is a special, nonlapsing revolving fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.
(2)    The Treasurer shall hold the Fund and the Comptroller shall account for it.
(e)    The Fund consists of:
(1)    money appropriated by the State to the Fund;
(2)    money made available to the Fund through federal programs or private contributions;
(3)    repayment of principal of a loan made from the Fund;
(4)    payment of interest on a loan made from the Fund;
(5)    proceeds from the sale, disposition, lease, or rental by the Corporation of collateral related to financing that the Corporation provides under this subtitle or Subtitle 4A of this title;
(6)    premiums, fees, royalties, interest, repayments of principal, and returns on investments paid to the Corporation by or on behalf of:
(i)    a qualified business in which the Corporation has made an investment under this subtitle or Subtitle 4A of this title; or
(ii)    an investor providing an investment guaranteed by the Corporation under this subtitle or Subtitle 4A of this title;
(7)    recovery of an investment made by the Corporation in a qualified business under this subtitle or Subtitle 4A of this title, including an arrangement under which the Corporation’s investment in the qualified business is recovered through:
(i)    a requirement that the Corporation receive a proportion of cash flow, commission, royalty, or payment on a patent; or
(ii)    the repurchase from the Corporation of any evidence of financial participation, including a note, stock, bond, or debenture;
(8)    repayment of a conditional grant extended by the Corporation;
(9)    money deposited into the Fund under § 10–4A–20(c)(2)(i) of this title; and
(10)    any other money made available to the Corporation for the Fund.
(f)    (1)    The Treasurer shall invest money in the Fund in the same manner as other State money.
(2)    Any investment earnings of the Fund shall be credited to the Fund.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part VII - Enterprise Fund › Section 10-470 - Administration of Grants

(a)    The Corporation may require that all or part of a grant be repaid, with interest at a rate the Corporation sets, when conditions specified by the Corporation occur.
(b)    (1)    Whenever the Corporation is authorized by law to make a grant, including a grant from the Economic Development Opportunities Program Account authorized under § 7–314 of the State Finance and Procurement Article, the Corporation may use money appropriated for the grant to make an equity investment in a qualified business.
(2)    (i)    Except as provided in subparagraph (ii) of this paragraph and Subtitle 4A of this title, in making an equity investment under this subtitle or Subtitle 4A of this title, the Corporation may not acquire an ownership interest in an enterprise that exceeds 25%.
(ii)    In making an equity investment under this subtitle or Subtitle 4A of this title in one or more venture or private equity firms, the Corporation may acquire an ownership interest exceeding 25%.
(3)    Within 15 years after making an equity investment under this subtitle or Subtitle 4A of this title, the Corporation shall divest itself of that investment.
(4)    The liability of the State and the Corporation in making an equity investment under this subtitle or Subtitle 4A of this title is limited to the amount of that investment.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part VIII - Maryland Small Business Innovation Research and Technology Transfer Incentive Program › Section 10-473 - Terms Defined

(a)    In this part the following words have the meanings indicated.
(b)    “Fund” means the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund.
(c)    “Program” means the Maryland Small Business Innovation Research and Technology Transfer Incentive Program.
(d)    “Small business innovation research award” means an award provided under a small business innovation research award program by an agency of the federal government for a business to engage in research and development that has a strong potential for commercialization.
(e)    “Small business technology transfer award” means an award provided under a small business technology transfer award program by an agency of the federal government for a business to engage in research and development that has a strong potential for commercialization.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part VIII - Maryland Small Business Innovation Research and Technology Transfer Incentive Program › Section 10-474 - Research and Technology Transfer Incentive Program -- Administered by Corporation -- Purpose of Program

(a)    There is a Maryland Small Business Innovation Research and Technology Transfer Incentive Program.
(b)    The Corporation shall administer the Program.
(c)    The purpose of the Program is to foster job creation and economic development in the State by:
(1)    promoting the commercialization of research conducted by small businesses in the State;
(2)    facilitating the transfer of technology from universities and federal research laboratories to small businesses; and
(3)    encouraging small businesses, including economically disadvantaged small businesses, to apply for small business innovation research awards and small business technology transfer awards.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part VIII - Maryland Small Business Innovation Research and Technology Transfer Incentive Program › Section 10-475 - Qualifications for Participation in Program -- Failure to Maintain Eligibility -- Return of Investment Funding

(a)    To qualify for participation in the Program, a small business shall meet the criteria in this section.
(b)    The small business shall:
(1)    meet the qualifications of a qualified business; and
(2)    have received a Phase I or Phase II small business innovation research award or small business technology transfer award during the 6 months immediately preceding the submission of its application under § 10–476 of this part.
(c)    An award or investment recipient that fails to fulfill the eligibility and maintenance requirements of the Program may be required to return all or part of the award or investment, as well as any accrued interest or fees, to the Program.
(d)    The Program shall require an award or investment recipient to return to the Fund any money from an award or investment under this part, as well as any accrued interest or fees, if the recipient does not remain a qualified business for at least 2 years after receiving the award or investment payment.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part VIII - Maryland Small Business Innovation Research and Technology Transfer Incentive Program › Section 10-477 - Research and Technology Transfer Incentive Matching Fund -- Purpose of Fund -- Administration of Fund -- Funding

(a)    There is a Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund.
(b)    The purpose of the Fund is to provide awards or investments to further stimulate innovation and entrepreneurship and attract early–stage small businesses engaged in research and development.
(c)    The Corporation shall administer the Fund.
(d)    (1)    The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.
(2)    The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(e)    The Fund consists of:
(1)    money appropriated in the State budget to the Fund;
(2)    repayments and earnings from investments made through the Program;
(3)    money recaptured from businesses that fail to fulfill the terms and conditions of an award or investment made through the Program;
(4)    interest earnings of the Fund; and
(5)    any other money from any other source accepted for the benefit of the Fund.
(f)    The Fund may be used only for:
(1)    providing awards or investments to eligible small businesses that have received financial assistance from the federal government under comparable small business innovation research or small business technology transfer award programs; and
(2)    administrative expenses of the Program, including marketing, outreach, and technical assistance.
(g)    (1)    The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2)    Interest earnings of the Fund shall be credited to the Fund.
(h)    Expenditures from the Fund may be made only in accordance with the State budget.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part IX - Inclusion Fund › Section 10-482 - Inclusion Fund -- Administered by Corporation -- Purpose of Fund

(a)    There is an Inclusion Fund in the Corporation.
(b)    The purpose of the Fund is to provide capital investment in technology–based businesses that:
(1)    would qualify for investment under the Builder Fund, as provided in regulations adopted by the Corporation;
(2)    are at least 30% owned by individuals who demonstrate economic disadvantage; and
(3)    are controlled and managed for at least 1 year after the time of investment by an individual or individuals who demonstrate economic disadvantage.
(c)    The Corporation shall administer the Fund.
(d)    (1)    The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(2)    The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(e)    The Fund consists of:
(1)    money appropriated in the State budget to the Fund;
(2)    interest earnings of the Fund; and
(3)    any other money from any other source accepted for the benefit of the Fund.
(f)    The Fund may be used only:
(1)    for the purposes described in subsection (b) of this section; and
(2)    to pay the costs necessary to administer the Fund.
(g)    (1)    The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2)    Any investment earnings of the Fund shall be credited to the Fund.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part IX - Inclusion Fund › Section 10-483 - Annual Report

The Corporation shall include as part of its annual report to the Governor and the General Assembly under § 10–415 of this subtitle a report on the implementation of the Fund.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4 - Maryland Technology Development Corporation › Part X - Miscellaneous Funds › Section 10-486 - Pre-Seed Builder Fund -- Purpose -- Management -- Special, Non-Lapsing Revolving Fund -- Annual Funding

(a)    In this section, “Fund” means the Pre–Seed Builder Fund.
(b)    There is a Pre–Seed Builder Fund in the Corporation.
(c)    The purpose of the Fund is to support the development of start–up companies run by entrepreneurs from socially or economically disadvantaged backgrounds that hinder access to traditional forms of capital and executive networks at the pre–seed stage.
(d)    The Corporation shall manage and supervise the Fund.
(e)    (1)    The Fund is a special, nonlapsing revolving fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.
(2)    The Treasurer shall hold the Fund, and the Comptroller shall account for the Fund.
(f)    (1)    For fiscal year 2023, the Governor shall include in the annual budget bill an appropriation of $5,000,000 to the Fund.
(2)    For fiscal year 2024, the Governor shall include in the annual budget bill an appropriation of $6,200,000 to the Fund.
(3)    For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation of $7,500,000 to the Fund.
(g)    (1)    The Treasurer shall invest money in the Fund in the same manner as other State money.
(2)    Any investment earnings of the Fund shall be credited to the Fund.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part I - General Provisions › Section 10-4A-03 - Membership

(a)    The Authority consists of the following nine members:
(1)    seven members appointed by the Governor with the advice and consent of the Senate;
(2)    one member appointed by the President of the Senate; and
(3)    one member appointed by the Speaker of the House.
(b)    (1)    Of the seven members appointed by the Governor:
(i)    1.    at least four shall have experience in working with companies that have raised investment capital for seed–stage to venture–stage companies or in providing professional services to the venture capital industry; and
2.    one of the four members selected under item 1 of this item shall have experience in higher education research and development and technology transfer projects;
(ii)    at least one shall have experience as a small business owner;
(iii)    at least one shall have experience as a business executive that has raised venture capital investments; and
(iv)    at least one shall be a resident of a rural county in the State.
(2)    The Governor shall consider the geographic diversity of the State when appointing members.
(c)    The members appointed by the President and the Speaker:
(1)    may not be elected officials; and
(2)    shall have experience and expertise in venture capital investments.
(d)    Each member shall be a resident of the State.
(e)    (1)    The term of a member is 4 years.
(2)    At the end of a term, a member continues to serve until a successor is appointed.
(3)    A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed.
(4)    A member appointed by the Governor may be removed by the Governor with or without cause.
(5)    The terms of the members are staggered as required by the terms provided for members of the Authority on July 1, 2011.
(f)    In addition to the requirements of Title 5 of the General Provisions Article, a member of the Authority may not be employed by or have any financial interest in a purchaser, qualified business, or venture firm or hold any other employment relationship or financial interest that would impair the impartiality and independent judgment of the member.
(g)    The Authority may not have additional advisors or advisory boards, whether acting informally or formally constituted, other than as appointed or designated in this subtitle.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part I - General Provisions › Section 10-4A-04 - Chair; Election of Officers

(a)    The Governor shall appoint a chair from among the members.
(b)    The Authority shall determine the manner of election of officers and their terms of office.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part I - General Provisions › Section 10-4A-05 - Quorum; Compensation and Reimbursement; Public Disclosure

(a)    (1)    Five members of the Authority are a quorum.
(2)    An act of the Authority must be approved by a majority vote of the members attending a meeting at which a quorum is present.
(b)    A member of the Authority:
(1)    may not receive compensation as a member of the Authority; but
(2)    is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.
(c)    A member of the Authority shall file a public disclosure of financial interests as required under the Maryland Public Ethics Law.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part I - General Provisions › Section 10-4A-06 - Advice to and Consultation With Corporation; Meetings

The Authority shall:
(1)    provide advice to and consult with the Corporation in connection with the administration of the Program under this subtitle; and
(2)    meet at least quarterly to review the Corporation’s investment policies, investment decisions, and adherence to the statutory and regulatory requirements imposed on the Corporation.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part II - Designated Capital › Section 10-4A-09 - General Provisions

(a)    All designated capital from purchasers shall be deposited into the Enterprise Fund to be invested as provided in this subtitle.
(b)    The Corporation shall allocate designated capital as follows:
(1)    67% to one or more venture firms to fund the making of qualified investments based on the criteria set forth in this subtitle, provided, that not more than 20% of this amount may be invested in the side car fund affiliates of the venture firms; and
(2)    33% to the Enterprise Fund, to be allocated:
(i)    $250,000 to the Rural Maryland Council for its operational expenses;
(ii)    75% of the remaining amount to fund the making of qualified investments in qualified businesses under the existing policies and procedures of the Enterprise Fund; and
(iii)    25% of the remaining amount to the Financing Authority Equity Participation Investment Program, to be invested in qualified businesses in accordance with the policies and procedures of the Financing Authority under Title 5, Subtitle 5, Part V of this article.
(c)    It is the goal of the State that a portion of the designated capital received under subsection (b)(2)(ii) of this section be used to make qualified investments in qualified businesses located in rural areas of the State.
(d)    As soon as practicable after the Corporation receives each installment of designated capital, the Corporation and each venture firm that has been allocated designated capital shall enter into a contract under which the allocated amount of designated capital will be transferred by the Corporation to the venture firm for investment as provided in this subtitle.
(e)    The Corporation shall secure the commitment of the purchasers in accordance with § 10–4A–10 of this subtitle.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part II - Designated Capital › Section 10-4A-10 - Bidding Process

(a)    The Authority shall obtain the services of an independent third party to conduct a bidding process in order to secure purchasers for the Program as provided in this section.
(b)    Using the procedures adopted by the independent third party, each potential purchaser shall make a timely and irrevocable offer, subject only to the Corporation’s issuance to the purchaser of tax credit certificates, to make specified contributions of designated capital to the Corporation on the dates specified in § 10–4A–11(a) of this subtitle.
(c)    The offer shall include:
(1)    the requested amount of tax credits, which may not be less than $1,000,000;
(2)    the potential purchaser’s specified contribution for each tax credit dollar requested, which may not be less than the greater of:
(i)    70% of the requested dollar amount of tax credits; or
(ii)    the percentage of the requested dollar amount of tax credits that the Secretary, on the recommendation of the independent third party, determines to be consistent with market conditions as of the offer date; and
(3)    any other information the independent third party requires.
(d)    (1)    The deadline for submission of applications for tax credits is February 1, 2012.
(2)    Each potential purchaser shall receive a written notice from the Corporation not later than May 1, 2012, indicating whether or not it has been approved as a purchaser and, if so, the amount of tax credits allocated.
(e)    The maximum amount of premium tax credits that may be allocated under this subtitle for all years in which premium tax credits are allocated is $100,000,000.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part II - Designated Capital › Section 10-4A-12 - Premium Tax

(a)    (1)    Subject to the restriction in paragraph (2) of this subsection, a purchaser may claim the premium tax credit on a premium tax return filed after December 31, 2014, for a taxable year that begins on or after January 1, 2014.
(2)    In each calendar year from 2015 through 2019, a purchaser may claim up to 20% of the premium tax credit allocated to that purchaser.
(b)    (1)    The credit to be applied against insurance premium tax liability in any 1 year may not exceed the insurance premium tax liability of the purchaser for that taxable year.
(2)    Any unused credit against insurance premium tax liability may be:
(i)    carried forward indefinitely until the premium tax credits are used; and
(ii)    used by the purchaser without restriction during any calendar year after 2019.
(3)    On 30 days’ advance notice to the Corporation, premium tax credits allocated to a purchaser under this subtitle may be transferred without further restriction to any other entity that:
(i)    meets the definition of a purchaser;
(ii)    is in good standing with the Maryland Insurance Administration; and
(iii)    agrees to assume all of the transferor’s obligations under the Program.
(c)    A purchaser claiming a credit against insurance premium tax liability earned through an investment under the Program is not required to pay any additional tax as a result of claiming the credit.
(d)    A purchaser is not required to reduce the amount of premium tax included by the purchaser in connection with rate–making for any insurance contract written in the State because of a reduction in the purchaser’s insurance premium tax derived from the credit granted under this subtitle.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part III - Venture Firms and Investments › Section 10-4A-15 - Independent Third Party

(a)    Subject to the approval of the Corporation, the Authority shall obtain the services of an independent third party to:
(1)    establish application procedures for an entity to be certified as a venture firm; and
(2)    review and evaluate applications for venture firm certification under this section.
(b)    The independent third party selected by the Authority shall:
(1)    review and evaluate the application, organizational documents, and business history of each applicant;
(2)    evaluate whether the applicant is likely to achieve the investment criteria set forth in this subtitle; and
(3)    recommend to the Authority which venture firms should receive allocations of designated capital under the Program.
(c)    (1)    On receiving the recommendations of the independent third party selected under subsection (a) of this section and subject to § 10–4A–16 of this subtitle, the Authority shall select venture firms to receive allocations of designated capital that are consistent with the investment criteria set forth in this subtitle.
(2)    The Authority shall ensure that the venture firms receiving designated capital for investment under this subtitle make investments in the State that equal or exceed the amount of designated capital received under this subtitle.
(3)    Subject to the approval of the Corporation, the Authority may enter into written agreements, including partnership agreements and side agreements, that are necessary to carry out the purposes of this part.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part III - Venture Firms and Investments › Section 10-4A-17 - Qualified Business

(a)    (1)    A business that is classified as a qualified business at the time of the first investment in the business by a venture firm, the Enterprise Fund, or the Financing Authority remains classified as a qualified business and may receive follow–on investments from a venture firm, the Enterprise Fund, or the Financing Authority as provided under this subsection.
(2)    A follow–on investment from a venture firm is a qualified investment even though the business does not meet the definition of a qualified business at the time of the follow–on investment.
(3)    With respect to an investment by the Enterprise Fund or the Financing Authority, a follow–on investment does not qualify as a qualified investment if, at the time of the follow–on investment, the business no longer meets the definition of a qualified business.
(b)    Each venture firm shall inform the Corporation in writing when the venture firm requires designated capital for investment or for the payment of approved fees and expenses.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part III - Venture Firms and Investments › Section 10-4A-18 - Prohibitions of Purchaser or Affiliate

(a)    A purchaser or affiliate may not directly or indirectly:
(1)    manage a venture firm;
(2)    beneficially own, through rights, options, convertible interests, or otherwise, more than 15% of the voting securities or other voting ownership interest of a venture firm; or
(3)    control the direction of investments for a venture firm.
(b)    Subsection (a) of this section applies whether or not the purchaser or affiliate is authorized to do business in the State.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part III - Venture Firms and Investments › Section 10-4A-19 - Reports and Audited Financial Statement

(a)    Not later than March 31 of each year, each venture firm and the Financing Authority shall report to the Corporation:
(1)    the amount of designated capital remaining uninvested at the end of the preceding calendar year;
(2)    all qualified investments made during the preceding calendar year, including the number of employees of each business at the time the qualified investment was made and as of December 31 of that year;
(3)    for any qualified investment in which the venture firm or the Financing Authority no longer has a position as of the end of the calendar year, the number of employees of the business as of the date the investment was terminated; and
(4)    any other information the Corporation requires to ascertain the impact of the Program on the economy of the State.
(b)    Not later than 180 days after the end of its fiscal year, each venture firm shall provide to the Corporation an audited financial statement that includes the opinion of an independent certified public accountant.
(c)    Not later than 60 days after the sale or other disposition of a qualified investment, the selling venture firm or the Financing Authority shall provide to the Corporation a report on the amount of the interest sold or disposed of and the consideration received for the sale or disposition.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part III - Venture Firms and Investments › Section 10-4A-20 - Distributions

(a)    A venture firm may make a qualified distribution at any time.
(b)    To make a distribution that is not a qualified distribution, a venture firm shall pay to the Comptroller the venture firm’s pro rata share of distributions made to all limited partners as provided under the applicable partnership documents and any agreement with the Corporation.
(c)    (1)    Except as provided in paragraph (2) of this subsection, the Comptroller shall distribute all payments received under this section to the General Fund within 30 days of receipt.
(2)    (i)    If the Corporation has an obligation under applicable venture firm investment documents to return to the venture firm a payment previously distributed to the Comptroller, the Comptroller shall deposit an amount equal to that payment into the Enterprise Fund to cover the obligation.
(ii)    If the Corporation determines that the money deposited under subparagraph (i) of this paragraph is no longer required to be returned to a venture firm under the applicable investment documents, the Corporation shall notify the Comptroller that the money may be distributed to the General Fund.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part III - Venture Firms and Investments › Section 10-4A-21 - Investment Returns Used to Make Additional Qualified Investments

Investment returns resulting from the qualified investments made under the Program by the Enterprise Fund or the Financing Authority shall be used to make additional qualified investments in qualified businesses by the Enterprise Fund or the Financing Authority.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part III - Venture Firms and Investments › Section 10-4A-22 - Required Equity Investments

(a)    Each venture firm shall be required to make equity investments in an amount not less than 50% of the capital allocated to qualified businesses within 3 years of each capital allocation.
(b)    In regards to venture firms that have received an allocation before June 1, 2019, the requirements of subsection (a) of this section shall apply as of June 1, 2019.
(c)    In the event that a venture firm fails to meet the requirements of subsection (a) of this section, the Corporation shall:
(1)    rescind the allocation and authorization for that firm from the date of noncompliance with subsection (a) of this section and remove that firm’s certification for participation in the program;
(2)    cease making the payment of management and other fees to the venture fund from the date of noncompliance with subsection (a) of this section; and
(3)    consult and coordinate with the Office of the Attorney General for the recovery of any funds, as may be necessary.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part IV - Miscellaneous › Section 10-4A-25 - Miscellaneous Provisions

(a)    In any case under the insurance law of the State in which the assets of a purchaser are examined or considered, the designated capital shall be treated as an admitted asset, subject to the same financial rating as that held by the State.
(b)    The Corporation shall submit the following to the Maryland Insurance Administration:
(1)    the names, addresses, and amount of designated capital to be contributed and premium tax credits earned by each successful bidder within 30 days after the close of the bidding process under § 10–4A–10 of this subtitle;
(2)    a copy of the tax credit certificate issued to each purchaser within 30 days after the issuance of the certificate under § 10–4A–11 of this subtitle;
(3)    the occurrence of a default by a purchaser; and
(4)    the transfer of premium tax credits by a purchaser.
2023 Maryland Statutes › Economic Development › Division II - Independent and Regional Development Units and Resources › Title 10 - Statewide Development Resources and Revenue Authorities › Subtitle 4A - Invest Maryland Program › Part IV - Miscellaneous › Section 10-4A-26 - Applicability of Other Provisions

(a)    Except as provided in subsection (b) of this section, Division II of the State Finance and Procurement Article does not apply to a service that the Corporation obtains that is related to the investment, management, analysis, purchase, or sale of an asset of the Corporation in a transaction authorized under this subtitle.
(b)    The Corporation is subject to Title 12, Subtitle 4 of the State Finance and Procurement Article for services related to the investment, management, analysis, purchase, or sale of assets of the Corporation in any transaction authorized under this subtitle.
(c)    Section 10–305 of the State Finance and Procurement Article does not apply to the sale, lease, transfer, exchange, or other disposition of real or personal property, including a share of stock in a business entity, that the Corporation acquires in a transaction authorized under this subtitle.