HOUSE BILL 1211
By: Delegate D. Barnes
Introduced and read first time: February 8, 2021
Assigned to: Ways and Means
A BILL ENTITLED
1 AN ACT concerning
2 Economic Development – Maryland Technology Development Corporation –
3 Pre–Seed Builder Fund
4 FOR the purpose of establishing the Pre–Seed Builder Fund in the Maryland Technology
5 Development Corporation as a special, nonlapsing fund; specifying the purpose of
6 the Fund; requiring the Corporation to administer the Fund; requiring the State
7 Treasurer to hold the Fund and the Comptroller to account for the Fund; requiring
8 the Governor to include in the annual budget bill a certain appropriation to the Fund;
9 providing for the investment of money in the Fund; exempting the Fund from a
10 certain provision of law requiring interest on State money in special funds to accrue
11 to the General Fund of the State; providing that the Fund is the successor to a certain
12 fund; defining a certain term; and generally relating to the Maryland Technology
13 Development Corporation and the Pre–Seed Builder Fund.
14 BY adding to
15 Article – Economic Development
16 Section 10–473 to be under the new part “Part VIII. Pre–Seed Builder Fund”
17 Annotated Code of Maryland
18 (2018 Replacement Volume and 2020 Supplement)
19 BY repealing and reenacting, without amendments,
20 Article – State Finance and Procurement
21 Section 6–226(a)(2)(i)
22 Annotated Code of Maryland
23 (2015 Replacement Volume and 2020 Supplement)
24 BY repealing and reenacting, with amendments,
25 Article – State Finance and Procurement
26 Section 6–226(a)(2)(ii)122. and 123.
27 Annotated Code of Maryland
28 (2015 Replacement Volume and 2020 Supplement)
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
2 HOUSE BILL 1211
1 BY adding to
2 Article – State Finance and Procurement
3 Section 6–226(a)(2)(ii)124.
4 Annotated Code of Maryland
5 (2015 Replacement Volume and 2020 Supplement)
6 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
7 That the Laws of Maryland read as follows:
8 Article – Economic Development
9 10–471. RESERVED.
10 10–472. RESERVED.
11 PART VIII. PRE–SEED BUILDER FUND.
13 (A) IN THIS SECTION, “FUND” MEANS THE PRE–SEED BUILDER FUND.
14 (B) THERE IS A PRE–SEED BUILDER FUND IN THE CORPORATION.
15 (C) THE PURPOSE OF THE FUND IS TO SUPPORT THE DEVELOPMENT OF
16 START–UP COMPANIES RUN BY ENTREPRENEURS FROM SOCIALLY OR
17 ECONOMICALLY DISADVANTAGED BACKGROUNDS THAT HINDER ACCESS TO
18 TRADITIONAL FORMS OF CAPITAL AND EXECUTIVE NETWORKS AT THE PRE–SEED
20 (D) THE CORPORATION SHALL MANAGE AND SUPERVISE THE FUND.
21 (E) (1) THE FUND IS A SPECIAL, NONLAPSING REVOLVING FUND THAT IS
22 NOT SUBJECT TO REVERSION UNDER § 7–302 OF THE STATE FINANCE AND
23 PROCUREMENT ARTICLE.
24 (2) THE TREASURER
SHALL HOLD THE FUND, AND THE
25 COMPTROLLER SHALL ACCOUNT FOR THE FUND.
26 (F) (1) FOR FISCAL YEAR 2023, THE GOVERNOR SHALL INCLUDE IN THE
27 ANNUAL BUDGET BILL AN APPROPRIATION OF $5,000,000 TO THE FUND.
28 (2)FOR FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUDE IN THE
29 ANNUAL BUDGET BILL AN APPROPRIATION OF $6,200,000 TO THE FUND.
HOUSE BILL 1211 3
1 (3) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER,
2 THE GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDGET BILL AN APPROPRIATION
3 OF $7,500,000 TO THE FUND.
4 (G) (1)
THE TREASURER SHALL INVEST MONEY IN THE FUND IN THE
5 SAME MANNER AS OTHER STATE MONEY.
6 (2) ANY INVESTMENT EARNINGS OF THE FUND SHALL BE CREDITED
7 TO THE FUND.
8 Article – State Finance and Procurement
10 (a) (2) (i) Notwithstanding any other provision of law, and unless
11 inconsistent with a federal law, grant agreement, or other federal requirement or with the
12 terms of a gift or settlement agreement, net interest on all State money allocated by the
13 State Treasurer under this section to special funds or accounts, and otherwise entitled to
14 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
15 Fund of the State.
16 (ii) The provisions of subparagraph (i) of this paragraph do not apply
17 to the following funds:
18 122. the Racing and Community Development Financing Fund;
20 123. the Racing and Community Development Facilities Fund;
22 124. THE PRE–SEED BUILDER FUND.
23 SECTION 2. AND BE IT FURTHER ENACTED, That the Pre–Seed Builder Fund
24 established under § 10–473 of the Economic Development Article, as enacted by Section 1
25 of this Act, is the successor to the Pre–Seed Builder Fund established under Title 14,
26 Subtitle 4, Chapter 3 of the Code of Maryland Regulations.
27 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July
28 1, 2021.Statutes affected:
Text - First - Economic Development – Maryland Technology Development Corporation – Pre–Seed Builder Fund: 10-471 State Finance and Procurement, 10-472 State Finance and Procurement, 10-473 State Finance and Procurement, 6-226 State Finance and Procurement