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 10-487 - Maryland Equity Investment Fund -- Purpose -- Funding -- Uses of Fund -- Investments

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Fund” means the Maryland Equity Investment Fund.
(3)    “Private equity” means an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange.
(4)    “Qualified business” means a business that, at the time of the first investment in the business:
(i)    has its principal business operations located in the State and intends to maintain its principal business operations in the State after receiving an investment under the Program;
(ii)    has agreed to use the qualified investment primarily to:
1.    support business operations in the State; or
2.    in the case of a start–up company, establish and support business operations in the State;
(iii)    has not more than 250 employees; and
(iv)    is not primarily engaged in:
1.    retail sales;
2.    real estate development;
3.    the business of insurance, banking, or lending; or
4.    the provision of professional services by accountants, attorneys, or physicians.
(5)    “Several systems” has the meaning stated in § 20–201 of the State Personnel and Pensions Article.
(6)    “Venture capital” means an investment of capital to a business at any stage of its development before the business makes a public offering of stock.
(b)    There is a Maryland Equity Investment Fund in the Corporation.
(c)    The purpose of the Fund is to allow unappropriated General Fund surplus to be invested in a qualified business with a goal to increase private equity and venture capital in the State, with the interest earnings and investment returns realized from those investments to the benefit of the participants of the several systems.
(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 State Treasurer shall hold the Fund, and the Comptroller shall account for the Fund.
(f)    The Fund consists of:
(1)    money distributed to the Fund under § 7–311 of the State Finance and Procurement Article;
(2)    money appropriated in the State budget to the Fund; and
(3)    any other money from any other source accepted for the benefit of the Fund.
(g)    The Fund may be used only:
(1)    for the purposes described in subsection (c) of this section; and
(2)    to pay the costs necessary to administer the Fund.
(h)    (1)    The State Treasurer shall invest money in the Fund in the same manner as other State money.
(2)    (i)    Except as provided in subparagraph (ii) of this paragraph, any investment earnings of the Fund and investment returns realized from the investments made under this section shall be credited to the accumulation funds of the several systems established under § 21–303 of the State Personnel and Pensions Article.
(ii)    The Corporation may retain 50% of investment returns realized from the investments made under this section.