Md. Code Ann., Econ. Dev. § 10-488
Redline — January 1, 2019 → current.View current text →
Current — January 1, 2025
As of January 1, 2019
(a) In selecting applicants for venture firm certification, the Authority shall consider:
(1) the management structure of the applicant, including:
(i) the investment experience of the principals;
(ii) the applicant’s reputation in the venture firm industry and the applicant’s ability to attract co–investment capital and syndicate investments in qualified businesses in the State;
(iii) the knowledge, experience, and capabilities of the applicant in subject areas relevant to venture–stage businesses in the State;
(iv) the tenure and turnover history of principals and senior investment professionals of the applicant; and
(v) whether the State’s investment in the applicant under this program would exceed 15% of the total invested in the applicant by all investors, including investments in any side car fund affiliates;
(2) the applicant’s investment strategy, including:
(i) the applicant’s track record of investing in venture–stage businesses;
(ii) the applicant’s history of attracting co–investment capital and syndicate investments;
(iii) the soundness of the applicant’s investment strategy and the compatibility of that strategy with business opportunities in the State; and
(iv) the applicant’s history of job creation through investment;
(3) the applicant’s commitment to making investments, that to the fullest extent possible:
(i) create employment opportunities in the State;
(ii) lead to the growth of the State economy and qualified businesses in the State;
(iii) complement the research and development projects of State academic institutions; and
(iv) foster the development of technologies and industries that present opportunities for the growth of qualified businesses in the State; and
(4) the applicant’s commitment to the State, including:
(i) the applicant’s presence in the State through permanent local offices or affiliation with local investment firms;
(ii) the local presence of senior investment professionals;
(iii) the applicant’s history of investing in venture–stage businesses in the State;
(iv) the applicant’s ability to identify investment opportunities through working relationships with State research and development institutions and State–based businesses;
(v) the applicant’s relationship with other venture firms in the region;
(vi) the applicant’s history of investing in areas relevant to venture–stage businesses in the State; and
(vii) the applicant’s commitment to investing a similar or greater amount of designated capital received under this subtitle in State–based ventures and qualified businesses.
(b) (1) An applicant shall file an application with the Corporation in the form required by the Corporation.
(2) The application shall include the applicant’s most recent financial statements.
(3) The Corporation shall begin accepting applications for certification on or before January 1, 2012.
(4) An application for certification may not be accepted after May 1, 2012.
(c) To be certified as a venture firm:
(1) the applicant must have, at the time of application, an equity capitalization, net assets, or written commitments of at least $500,000 in the form of cash or cash equivalents; and
(2) at least two principals or persons employed to direct the investment of the designated capital of the applicant must have at least 5 years of money management experience in the venture capital or private equity sectors.
(d) Not later than 90 days after an application is filed, the Secretary shall either:
(1) issue the certification; or
(2) refuse to issue the certification and communicate in detail to the applicant the grounds for the refusal.
(a) (1) In this section the following words have the meanings indicated.
(2) “Commission” means the Equitech Growth Commission.
(3) “Fund” means the Equitech Growth Fund.
(b) (1) There is an Equitech Growth Fund in the Corporation.
(2) The purpose of the Fund is to support the economic competitiveness and inclusive growth of emerging and advanced industries in the State through the creation of supporting infrastructure assets, resources, and diverse workforce that builds the strengths of the State’s economy.
(3) The Corporation shall administer the Fund.
(4) (i) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(ii) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(5) The Fund consists of:
(i) money appropriated in the State budget to the Fund;
(ii) interest earnings of the Fund; and
(iii) any other money from any other source accepted for the benefit of the Fund.
(6) The Fund shall leverage investment from the private sector, funding from federal sources, and other sources of funding.
(7) The Fund may be used only:
(i) to make awards from the Fund in accordance with subsection (c) of this section; and
(ii) to pay the costs of administering the Fund.
(c) (1) The Corporation shall award grants, investments, loans, or other financial assistance from the Fund to public, nonprofit, or private entities in the State, including institutions of higher education and public–private partnerships.
(2) Awards from the Fund shall target:
(i) workforce development; and
(ii) infrastructure that will attract and retain businesses in the State.
(3) Awards shall be consistent with the 10–year goals in the strategic plan developed by the Commission.
(d) For each of fiscal years 2025 through 2033, the Governor shall include in the annual budget bill an appropriation of $5,000,000 to the Fund.
(e) The Corporation shall adopt regulations to establish:
(1) a competitive application process;
(2) review criteria and procedures for making awards, including private leverage requirements for awards;
(3) processes and metrics for monitoring each project and the success, economic impact, and impact of the award on the State’s diversity, equity, and inclusion in the State’s innovation economy; and
(4) processes for ensuring that the programmatic funds and leveraged funds are invested within the State.
(f) On or before July 1 each year, beginning in 2024, the Corporation shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the President of the Senate and the Speaker of the House on awards made from the Fund.
Official source: Maryland General Assembly. Reproduced from public-domain Maryland statutes; confirm against the official source for the current text. Not legal advice.