In this subtitle the following words have the meanings indicated. “Board” means the Board of Directors of the Corporation. “Corporation” means the Maryland Technology Development Corporation. “Improve” means to add, alter, construct, equip, expand, extend, improve, install, reconstruct, rehabilitate, remodel, or repair. “Investment committee” means a committee appointed by the Board to advise on and approve investments as required under this subtitle. “Principal business operations” means the headquarters from which the business’s officers direct, control, and coordinate the business’s activities. “Qualified business” means a business that, at the time of the first investment in the business under a program of the Corporation, except as otherwise provided in this subtitle: has its principal business operations located in the State, has over half its workforce working in the State, and intends to maintain its principal business operations in the State after receiving an investment under the program; or is a business or start–up business that is approved by the investment committee and will, as a result of the investment, have a substantial economic impact in the State through job creation, capital investment, and contribution to the State’s technology ecosystem; has agreed to use the investment primarily to: support business operations in the State; or in the case of a start–up company, establish and support business operations in the State; has not more than 250 employees; and is not primarily engaged in: retail sales; real estate development; the business of insurance, banking, or lending; or the provision of professional services by accountants, attorneys, or physicians.

There is a Maryland Technology Development Corporation. The Corporation is a body politic and corporate and is an instrumentality of the State. The purposes of the Corporation are to: assist in transferring to the private sector the results and products of scientific research and development conducted by colleges, universities, and federal research institutions in the State; assist in commercializing those results and products; assist in commercializing technology developed in the private sector; foster the commercialization of research and development conducted by colleges, universities, and the private sector to create and sustain businesses throughout all regions of the State; generally assist early–stage and start–up businesses in the State; invest in Maryland–based technology companies and promote the commercialization and growth of technology companies and jobs in the State; build a long–term entrepreneurial capacity and sustained venture capital presence in the State; create pathways to follow–on financing in the State; and foster inclusive and diverse entrepreneurship and innovation throughout the State, which may include initiatives to raise awareness of programs to assist small, minority, and women–owned businesses through marketing and other efforts. In accordance with § 10–834 of this title, the Corporation and the Maryland Clean Energy Center shall coordinate with the Maryland Energy Innovation Institute in supporting Maryland–based technology companies engaged in clean energy innovation.

A Board of Directors shall manage the Corporation and its units and exercise its corporate powers. The Board of Directors may appoint members of an advisory committee. If the Board of Directors appoints an advisory committee, the Board shall adopt policies establishing the responsibilities of the advisory committee. The Board consists of the following 19 members: the Secretary or the Secretary’s designee; fourteen members appointed by the Governor with the advice and consent of the Senate: two representing the nonprofit research sector of the State; two with expertise in venture capital financing; five with experience in technology–based businesses; two representing colleges and universities, at least one of whom shall represent an historically black college or university, except that any single college or university may not be represented for more than two consecutive terms; and three members of the general public; and subject to subsection (c) of this section: two members appointed by the President of the Senate; and two members appointed by the Speaker of the House. The members appointed under subsection (b)(3) of this section shall: represent the nonprofit research sector of the State; have expertise in venture capital financing; have experience in technology–based businesses; represent colleges and universities; or be members of the general public. A member of the Board shall reside in the State. In making appointments to the Board, the Governor shall consider: diversity; and all geographic regions of the State. A member of the Board: may not receive compensation as a member of the Board; but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. The term of an appointed member is 4 years. The terms of the appointed members are staggered as required by the terms provided for members on October 1, 2008. At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. This subsection applies to a member who is appointed by the Governor under subsection (b) of this section. The Governor may remove an appointed member for incompetence, misconduct, or failure to perform the duties of the position. The Board shall elect a chair from among its members. The Board may act with an affirmative vote of 11 Board members.

The Attorney General is the legal advisor to the Corporation. The Attorney General shall assign to the Corporation assistant Attorneys General. The Attorney General shall designate one assistant Attorney General as general counsel to the Corporation. The general counsel to the Corporation shall: advise the Chief Executive Officer, Board of Directors, and any other official of the Corporation as requested by the Corporation; supervise the other assistant Attorneys General assigned to the Corporation; and perform for the Corporation other duties the Attorney General assigns. The general counsel may not provide any other assistance not specified in subparagraph (i) of this paragraph. With the approval of the Attorney General, the Corporation may retain any additional necessary lawyers.

Except as provided in subsections (b), (c), and (e) of this section, the Corporation is exempt from Title 10 and Division II of the State Finance and Procurement Article. The Corporation is subject to the Public Information Act. The Board, the officers and employees of the Corporation, members of the investment committee, and members of any advisory committee appointed are subject to the Public Ethics Law. The officers and employees of the Corporation are not subject to the provisions of Division I of the State Personnel and Pensions Article that govern the State Personnel Management System. The Corporation, its Board, and employees are subject to Title 12, Subtitle 4 of the State Finance and Procurement Article. The Board, the officers and employees of the Corporation, the members of the investment committee, and the members of any advisory committee appointed shall disclose to the State Ethics Commission whether they are employed by or have a financial interest in an entity that currently has or will apply for funds or an investment in a program administered by the Corporation. For purposes of the Open Meetings Act, a project site visit or educational field tour may not be considered a meeting of the Corporation if no organizational business is conducted.

The Corporation shall adopt regulations establishing: the investment committee; the responsibilities of the investment committee, including a process for considering remedies, including divestment, for investments in a business that no longer meets the definition of a qualified business; and the procedures for the appointment of investment committee members. The Corporation may: adopt bylaws for the conduct of its business; adopt a seal; maintain offices at a place it designates in the State; accept loans, grants, or assistance of any kind from the federal or State government, a local government, a college or university, or a private source; enter into contracts and other legal instruments; sue or be sued; acquire, purchase, hold, lease as lessee, and use: a franchise, patent, or license; any real, personal, mixed, tangible, or intangible property; or an interest in the property listed in this item; sell, lease as lessor, transfer, license, assign, or dispose of property or a property interest that it acquires; fix and collect rates, rentals, fees, royalties, and charges for services and resources it provides or makes available; create, own, control, or be a member of a corporation, limited liability company, partnership, or other entity, whether operated for profit or not for profit; subject to a written agreement, provide administrative support and services to an entity described under item (10) of this subsection and receive compensation for providing the support and services; exercise power usually possessed by a private corporation in performing similar functions unless to do so would conflict with State law; and do all things necessary or convenient to carry out the powers granted by this subtitle.

Except as provided in subsection (c) of this section, the Corporation may make grants to or provide equity investment financing for technology–based businesses, if: the investments are made to a qualified business; the investments are made on review and approval of a written application that: contains sufficient information to verify that the qualified business has its principal business operations in the State or will have a substantial economic impact on the State; and contains a certification of the veracity of the information by an authorized signatory of the qualified business; and at least the number of members that constitutes a quorum of any fund or authority has been appointed under the requirements for that fund or authority. The Corporation shall include in the application for investment described under paragraph (1)(ii) of this subsection: an option for an applicant to provide the applicant’s race, ethnicity, age, gender, disability status, and veteran status and the geographic area of the State where the applicant’s primary place of business is located; and a statement advising the applicant that provision of the information described under item (i) of this paragraph is voluntary but encouraging applicants to provide the information. The Corporation may not take any adverse action against an applicant who declines to provide the information described under paragraph (2)(i) of this subsection. In regard to any and all programs of the Corporation, except as otherwise provided in this subtitle and Subtitle 4A of this title, the Corporation shall adopt regulations to govern investments under this subsection that specify: the types of qualified businesses in which an investment may be made; the basic standards an enterprise shall meet to qualify for an investment; the amount of money available for investment; the investment policy statement of the Corporation that describes the procedures, criteria, investment philosophy, and guidelines for how the Corporation’s investment decisions will be made; and a process for the consideration of whether investments help to foster inclusive and diverse entrepreneurship, including the Corporation’s support for marketing and other efforts to raise awareness of programs to assist small, minority, and women–owned businesses. The Corporation may make investments under an agreement with the Board of Trustees for the State Retirement and Pension System under § 21–123.2 of the State Personnel and Pensions Article.

On or before October 1 of each year, the Corporation shall report to the Governor, the Maryland Economic Development Commission, and, in accordance with § 2–1257 of the State Government Article, the General Assembly. The report required under this subsection shall include: a complete operating and financial statement covering the Corporation’s operations; a summary of the Corporation’s activities during the preceding fiscal year; information on all salaries and any incentives approved by the Board for Corporation employees; information on outreach, training, mentorship, support, and investment in minority and women–owned qualified businesses, including support for marketing by the Maryland Small Business Development Financing Authority; information on entities that have current investments and entities that received funding or investments in the current year on the: principal business operations; number of employees in the State and the number of employees outside the State; capital or other investments made in the State; and proposed and actual job creation or capital investment in the State as a result of the investment or support; a list of businesses that have received funding that would no longer qualify as a qualified business; and information on the creation of and appointments made to an advisory committee and the responsibilities of the advisory committee and members of the committee. On or before October 1 each year, beginning in 2023, and every 6 months thereafter, the Corporation shall report to the Governor, the Maryland Economic Development Commission, and, in accordance with § 2–1257 of the State Government Article, the Joint Audit and Evaluation Committee and the General Assembly. The report required under this subsection shall include a list of the qualified businesses or other businesses receiving support through programs administered by the Corporation, including those receiving investments made under § 21–123.2 of the State Personnel and Pensions Article. The list of qualified businesses or other businesses receiving support shall include for each business: the number of employees in the State; the number of employees outside the State; the capital or other investments made in the State; and proposed job creation or capital investment in the State as a result of the investment or support. On or before October 1, 2024, and each October 1 thereafter, the Corporation shall report to the Governor, the Maryland Economic Development Commission, and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the following information from the immediately preceding fiscal year: the number of applications the Corporation received; the amount of investment funding that was available at the beginning of the fiscal year; the amount of investment funding that was available at the end of the fiscal year; the amount of investment funding that was requested; the number of applicants the Corporation invested in; and the amount of investment funding the Commission awarded. The information reported in accordance with paragraph (1) of this subsection shall: specify which applications and investments were from social impact funds, seed funds, and the Maryland Venture Fund; and if available, provide information that has been de–identified and disaggregated on applicants and qualified business founders by race, ethnicity, age, gender, disability status, veteran status, and geographic location and the degree to which applicants and founders identify with more than one demographic category.

There is a Comprehensive Technical Assistance Program in the Corporation. The purpose of the Program is to provide comprehensive technical assistance to any business that qualifies for financial assistance under this subtitle or any other program in the portfolio of the Corporation. The technical assistance provided under the Program shall: incorporate existing services of the Corporation; include flexible and customized applied training services; include the use of a network of experienced advisors to serve as mentors and loaned executives; and include support with attracting and accessing private capital. 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 the implementation of the Program. The Corporation shall adopt regulations to carry out this section.

There is a Maryland Advanced Manufacturing Grant Program. Subject to subsection (f) of this section, the Corporation shall administer the Program. The purpose of the Program is to support the growth of companies that specialize in regenerative medicine and other advanced manufacturing. The Corporation shall establish: eligibility criteria to receive a grant under the Program; grant application procedures and evaluation criteria; and grant award processes and amounts. Grant recipients may use grant proceeds only for: the acquisition, renovation, or construction of space for regenerative medicine or other advanced manufacturing; infrastructure improvements necessary to support regenerative medicine or other advanced manufacturing; and the equipment necessary for regenerative medicine or other advanced manufacturing. In this subsection, “Fund” means the Maryland Advanced Manufacturing Grant Program Fund. There is a Maryland Advanced Manufacturing Grant Program Fund. The purpose of the Fund is to provide grants under this section. The Corporation shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; interest earnings; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used only for: grants under this section; and the costs incurred by the Corporation to administer the Program. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget. The Corporation shall consult with the Maryland Stem Cell Research Commission only on items related to regenerative medicine under the Program, including: establishing criteria or procedures specific to regenerative medicine under this section; and adopting regulations regarding regenerative medicine under this section. The Corporation may adopt regulations necessary to carry out this section.

After consulting with the Secretary, the Board shall adopt standards to award financial assistance. The standards shall authorize the award of financial assistance to: support the development and use of best practices in the incubation process; provide strategic planning, needs assessments, and feasibility studies; or help acquire or improve new or expanded space or improve existing space for an incubator, including providing or helping another with: acquisition of land; acquisition of architectural or engineering services; payment of administrative costs; development or upgrading of communications infrastructure; acquisition of furnishings or equipment; or acquisition of other items associated with tenant build-out.

In this part the following words have the meanings indicated. “Adult stem cell” means a stem cell that is: derived from human tissue; and obtained after birth. “Commission” means the Stem Cell Research Commission. “Committee” means the independent scientific peer review committee that contracts with the Commission under § 10-436 of this subtitle. “Fund” means the Maryland Stem Cell Research Fund established under § 10-434 of this subtitle. “Human cloning” means the replication of a human being through the production of a precise genetic copy of nuclear human DNA or any other human molecule, cell, or tissue in order to create a new human being or to allow development beyond an embryo. “Institutional review board” has the meaning stated in the federal regulations on the protection of human subjects. “Oocyte” means a female germ cell or egg. “State-funded stem cell research” means stem cell research conducted with State money and using: material obtained in accordance with § 10-438 of this subtitle; or adult stem cells. “Stem cell” means a human cell that has the ability to: divide indefinitely; give rise to many other types of specialized cells; and give rise to new stem cells with identical potential. “Valuable consideration” means financial gain or advantage in connection with material obtained in accordance with § 10-438 of this subtitle.

There is a Stem Cell Research Commission. The Commission is an independent commission that functions in the Corporation. The Commission consists of the following members: the Attorney General or the Attorney General’s designee; three patient advocates, one appointed by the Governor, one appointed by the President of the Senate, and one appointed by the Speaker of the House of Delegates; three individuals with experience in biotechnology, one appointed by the Governor, one appointed by the President of the Senate, and one appointed by the Speaker of the House of Delegates; two individuals who work as scientists for the University System of Maryland and do not engage in stem cell research, appointed by the University System of Maryland; two individuals who work as scientists for the Johns Hopkins University and do not engage in stem cell research, appointed by the Johns Hopkins University; two bioethicists, one appointed by the University System of Maryland and one appointed by the Johns Hopkins University; and two individuals with expertise in the field of biomedical ethics as it relates to religion, appointed by the Governor. The term of an appointed member is 2 years. The terms of the appointed members are staggered as required by the terms provided for members on October 1, 2008. At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies. An appointed member may not serve more than three consecutive full terms. An appointed member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. Each member of the Commission shall disclose to the State Commission on Ethics whether the member is employed by or has a financial interest in an entity that may apply to conduct State–funded stem cell research. The members of the Commission shall elect a chair from among the appointed members of the Commission. A majority of the full authorized membership of the Commission is a quorum. The Commission shall meet at least twice a year. A member of the Commission: may not receive compensation as a member of the Commission; but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. The Commission may employ a staff, including contractual staff, in accordance with the State budget.

The Commission shall: adopt regulations that ensure that adult stem cell and stem cell research financed by the Fund complies with State law; develop criteria, standards, and requirements for the initial review of grant and loan applications by the Commission; review grant and loan applications to ensure that each application is complete and satisfies the criteria, standards, and requirements developed by the Commission, including approval by an institutional review board; establish procedures and guidelines to be used by the committee for the review, evaluation, ranking, and rating of research proposals for State–funded stem cell research; ensure that the procedures and guidelines established under item (4) of this subsection are based on the guidelines of the National Institutes of Health Center for Scientific Review; establish criteria, standards, and requirements for consideration of grant and loan applications based on the rankings and ratings of the committee; make recommendations consistent with the criteria, standards, and requirements established by the Commission and based on the rankings and ratings of the committee regarding the award of grants and loans from the Fund; establish standards for the oversight and use of awards; conduct progress oversight reviews of recipients; notify the Corporation regarding the submission by a recipient, or failure of a recipient, to submit institutional review board approval for a grant or loan awarded under this part; and develop guidelines on disclosure and recusal to be followed by members of the Commission when considering grant and loan applications. The Commission may consult with experts in performing its duties.

There is a Maryland Stem Cell Research Fund. The purpose of the Fund is to promote State–funded stem cell research and cures through grants and loans to public and private entities in the State. The Corporation shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article. The Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: appropriations as provided in the State budget; and any other money from any other source accepted for the benefit of the Fund. Money in the Fund may only be used to: award grants and loans for State–funded stem cell research, in accordance with the recommendations of the Commission; award grants and loans for facilities, capital leases, and capital equipment where State–funded stem cell research is conducted, in accordance with the recommendations of the Commission; and pay the costs necessary to administer the Fund. The Treasurer shall invest the money in the Fund in the same manner as other State money may be invested. Any investment earnings shall be paid into the Fund. The Governor may include in the State budget bill each fiscal year an appropriation to the Fund. Expenditures from the Fund may only be made in accordance with an appropriation approved by the General Assembly in the State budget or by an approved budget amendment.

A grant or loan awarded under this part is contingent on the recipient: submitting to the Commission approval from an institutional review board; and entering into a memorandum of understanding with the Corporation that: establishes the scope of the State’s ownership or other financial interest in the commercialization and other benefits of the results, products, inventions, and discoveries of State-funded stem cell research; and to the extent consistent with federal and State law, reflects the intellectual property policies of the institution. A recipient shall submit the approval required under subsection (a)(1) of this section within 6 months after the award of the grant or loan. The Corporation may not disburse grant or loan money to a recipient until: the recipient has obtained the approval required under subsection (a)(1) of this section; and the recipient and the Corporation have entered into the memorandum of understanding required under subsection (a)(2) of this section.

The Commission shall contract with an independent scientific peer review committee composed of scientifically recognized experts in the field of stem cell research. The committee shall: review, evaluate, rank, and rate research proposals for State-funded stem cell research: based on the procedures and guidelines established by the Commission; and in a manner that gives due consideration to the scientific, medical, and ethical implications of the research; and make recommendations to the Commission, based on the rankings and ratings awarded to research proposals by the committee, for the award and disbursement of grants and loans under the Fund. A member of the committee: is not eligible to receive a grant or loan for State-funded stem cell research from the Fund; may not reside in the State; and shall be subject to conflict of interest standards that are at least as stringent as the standards on conflict of interest adopted by the National Institutes of Health.

A health care practitioner licensed under the Health Occupations Article who treats individuals for infertility shall: provide individuals with information sufficient to enable them to make an informed and voluntary choice regarding the disposition of any unused material; and present to individuals the option of: storing or discarding any unused material; donating any unused material for clinical purposes in the treatment of infertility; except as provided in subsection (b) of this section, donating any unused material for research purposes; and donating any unused material for adoption purposes. Any unused material donated for State-funded stem cell research may not be an oocyte. An individual who donates any unused material for research purposes under subsection (a)(2) of this section shall provide the health care practitioner with written consent for the donation.

There is a Coordinating Emerging Nanobiotechnology Research in Maryland Fund in the Corporation. The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article. The Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: appropriations as provided in the State budget; and any other money from any other source accepted for the benefit of the CENTR Maryland Program. The Chief Executive Officer of the Corporation, or the Chief Executive Officer’s designee, shall administer the Fund in accordance with this part and other applicable law. The Fund shall be used to cover the costs of the Program, including any grants that are awarded to eligible recipients. The Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any investment earnings of the Fund shall be credited to the Fund. The Legislative Auditor shall audit the accounts and transactions of the Fund as provided in § 2–1220 of the State Government Article.

Within the CENTR Maryland Program, subject to available funding, the Corporation shall award capital and operating grants from the Fund to private sector entities and institutions of higher education in the State to: leverage federal funding for the establishment or construction of research centers in the State; provide pilot funding for faculty at institutions of higher education in the State to develop initial research data for the development of larger grant funding proposals; foster public–private partnerships between private industry and institutions of higher education in the State; and assist with the transfer of nanobiotechnology research into commercial applications. Within the CENTR Maryland Program, the Corporation may award operating grants from the Fund to institutions of higher education that shall include: discovery educational grants to support postdoctorate or graduate–level collaboration with private sector entities on nanobiotechnology projects that: shall be subject to supervision by faculty members; and require a matching sum, either direct or in–kind, from a private sector entity equivalent to the grant amount; collaborative grants to support research teams from institutions of higher education working with private sector entities on collaborative research projects that: focus on specific application development; and require a matching sum from the private sector entity equivalent to the grant amount; and prototype grants to enable institutions of higher education and private sector entities to engage in projects that: demonstrate whether a prototype is functional and manufacturable; demonstrate the cost effectiveness of nanotechnology–related applications; and shall be matched with an industry grant in an amount of at least $2 for every $1 of the prototype grant.

In this part the following words have the meanings indicated. “Commercialization” means the process of introducing a new product or technology into the market. “Fund” means the Maryland Innovation Initiative Fund established under § 10–457 of this subtitle. “Initiative” means the Maryland Innovation Initiative established under § 10–455 of this subtitle. “Participating members” means the representatives described in § 10–455(b) of this subtitle. “Qualifying university” means a public or private university that meets the requirements set forth under § 10–455(c) of this subtitle. “Technology transfer” means the process of converting scientific and technological advances into marketable goods and services. “University” means a nonprofit, research university located in Maryland.

There is a Maryland Innovation Initiative. The Initiative consists of the following participating members: one official of State government not affiliated with Maryland higher education, or the official’s designee, appointed by the Governor; two individuals from the private sector not affiliated with Maryland higher education with experience in commercializing technology in the State, one appointed by the President of the Senate, and one appointed by the Speaker of the House of Delegates; and subject to subsection (c) of this section, the following members appointed by the respective universities: one representative of the Johns Hopkins University; one representative of Morgan State University; one representative of University of Maryland Baltimore County; and two representatives of the University of Maryland, one from the College Park Campus and one from the Baltimore Campus. Subject to paragraph (2) of this subsection, only the universities listed under subsection (b)(3) of this section may qualify for participation in the Initiative. To qualify for participation in the Initiative, a university shall provide, as specified in paragraph (3) of this subsection, a contribution annually to the Initiative to carry out the purposes set forth under this part. To qualify for participation in the Initiative, the following universities shall pay an annual contribution of at least $200,000: Johns Hopkins University; University of Maryland, Baltimore Campus; and University of Maryland, College Park Campus. To qualify for participation in the Initiative, the following universities shall pay an annual contribution of at least $100,000: Morgan State University; and University of Maryland Baltimore County. A university listed under subsection (b)(3) of this section may elect to withdraw as a participating member for future years on providing 60 days’ written notice to the Chair or Executive Director of the Initiative. The participating members of the Initiative shall select a chair from among their members. A participating member of the Initiative: may not receive compensation as a member of the Initiative; but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget or under the applicable travel regulations of a university if the university reimburses the participating member. The Initiative may employ staff, including an Executive Director.

There is a Maryland Innovation Initiative Fund. The purpose of the Fund is to provide funding for the purposes described in §§ 10–456 and 10–461 of this subtitle. The Corporation shall administer the Fund. The Fund consists of: appropriations as provided in the State budget; contributions by the qualifying universities under § 10–455 of this subtitle and eligible institutions under § 10–461 of this subtitle; grants or funds from federal laboratories located in Maryland; interest or other income earned on the investment of money in the Fund; and any other money accepted for the benefit of the Initiative. Money in the Fund may be used only to: award grants or provide equity investment financing to promote the commercialization of research in accordance with the terms of this part; and pay the costs necessary to administer the Initiative. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The State Treasurer shall invest the money in the Fund in the same manner as other State money may be invested. Any investment earnings of the Fund shall be credited to the Fund.

The Initiative may: 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; pursue grants, other funds, and in–kind contributions for the Initiative or its qualifying universities; develop and implement guidelines for technology transfer; and identify projects at qualifying universities that may be viable for commercialization. The grant funding or equity investment financing in subsection (a) of this section shall be awarded: to support pre–commercial research on intellectual property to increase the likelihood of commercializing the intellectual property; to defray costs of evaluating the feasibility of a technology becoming commercialized through a start–up company; to defray the direct costs of developing early stage technology through a start–up entity; to assess intellectual property issues, including licensing and patents; or for any other costs that the Initiative’s participating members determine are appropriate to promote technology transfer and commercialization in the State.

Only qualifying universities may submit proposals for grant funding from the Initiative. The participating members of the Initiative may establish a committee composed of experts in the areas of research considered for commercialization. The Initiative may establish the committee under service contracts with independent reviewers. The committee shall: review, evaluate, and rate proposals for funding from the Initiative, based on: the viability of commercializing the technology; and the relative costs associated with commercializing the technology; and make recommendations to the participating members of the Initiative for the award and disbursement of grants from the Initiative. A member of the committee is not eligible to receive funding from the Initiative.

In this section the following words have the meanings indicated. “Eligible institution” means Bowie State University, Frostburg State University, and any other public or private nonprofit institution of higher education deemed eligible by the Initiative. “Program” means the Maryland Innovation Initiative Institution Partnership Extension Program. There is a Maryland Innovation Initiative Institution Partnership Extension Program. The purpose of the Program is to expand opportunities for technology validation, entrepreneurial development, and industry engagement at eligible institutions. The Initiative shall implement and administer the Program. The Initiative shall collaborate with an eligible institution to identify and support industry partnerships and commercialization opportunities. The Initiative may explore opportunities for expanding eligibility to other public or private nonprofit institutions of higher education. Only an eligible institution may submit project proposals for funding under the Program. To qualify for a grant under the Program, a project proposal must: support the creation of a new technology–based business in Maryland; advance technology toward commercialization of a product or service; foster entrepreneurial development at the eligible institution; create an opportunity for meaningful economic impact in the region around the eligible institution; or foster collaboration between the eligible institution and an industry partner, including: product development with commercialization potential; and matching funds provided by the industry partner. The Initiative shall develop criteria to review, evaluate, and rate project proposals for funding under the Program. The Executive Director shall distribute grants to projects based on the criteria developed in accordance with paragraph (1) of this subsection. An eligible institution shall provide a cash match equivalent to 10% of the amount awarded under paragraph (2) of this subsection. For fiscal years 2027 and 2028, the Governor may include in the annual budget bill an appropriation of $250,000 for the Program. The funding provided in this subsection shall be used to supplement, not supplant, any funds that would otherwise be provided to the Initiative. In addition to information on the Initiative included in the annual report of the Corporation under § 10–415 of this subtitle: on or before January 1, 2026, the Corporation shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on similar programs in neighboring states and the potential economic benefits and costs of expanding the Initiative to all public and private nonprofit institutions of higher education operating in the State; and on or before July 1, 2028, the Corporation shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the implementation of the Program.

There is a Pava LaPere Innovation Acceleration Grant Program in the Corporation. The Corporation shall administer the Program. The purpose of the Program is to foster growth of the entrepreneurial innovation ecosystem in the State by providing grants to technology–based start–up companies that: are founded by students of postsecondary institutions located in the Baltimore–Columbia–Towson Metropolitan Statistical Area; and have their principal place of business in the Baltimore–Columbia–Towson Metropolitan Statistical Area. An applicant shall submit an application for a Program award as required by the Corporation. The Program shall review the application and all supporting materials to evaluate whether the applicant qualifies for an award from the Program. Subject to paragraphs (2) and (3) of this subsection, the Program shall award $50,000 to each qualifying applicant. A qualifying applicant shall use at least 20% of the award to hire third–party consultants for planning, development, regulatory compliance, or other technical assistance related to establishing the start–up company. The Corporation may provide waivers on request by an applicant. For each fiscal year, the Governor shall include an appropriation for the Program in the annual budget bill. The Program may use up to 10% of the annual appropriation for administrative expenses, not to exceed $50,000 in a single fiscal year. The Corporation shall adopt regulations necessary to carry out this section.

In this section the following words have the meanings indicated. “Eligible university” means a public or private college or university located within the Baltimore–Columbia–Towson Metropolitan Statistical Area. “Eligible university” includes: Anne Arundel Community College; Baltimore City Community College; Carroll Community College; Community College of Baltimore County; Coppin State University; Goucher College; Harford Community College; Howard Community College; Johns Hopkins University; Loyola University Maryland; Maryland Institute College of Art; McDaniel College; Morgan State University; Notre Dame of Maryland University; St. John’s College; Stevenson University; Towson University; University of Baltimore; University of Maryland, Baltimore Campus; and University of Maryland Baltimore County. “Pilot Program” means the Baltimore Innovation Initiative Pilot Program. There is a Baltimore Innovation Initiative Pilot Program. The purpose of the Pilot Program is to provide incentives for and grow technology start–up companies founded by students or faculty at eligible universities. The Initiative shall implement and administer the Pilot Program. The Initiative shall collaborate with each participating eligible university to identify and support entrepreneurial initiatives, industry partnerships, and commercialization opportunities related to technology. To qualify for participation in the Pilot Program, each eligible university shall pay an annual contribution of up to $50,000. Only an eligible university may submit project proposals for funding under the Pilot Program. To qualify for participation in the Pilot Program, a project proposal must: support the creation of a new technology–based business in the State; advance the technology toward commercialization of a product or service, with preference for products or services that align with the goals of integrating artificial intelligence or machine learning in health care and biotechnology sectors in the State; foster equitable and inclusive entrepreneurial development at the eligible university; create an opportunity for meaningful economic impact in the region around the eligible university; or foster collaboration between the eligible university and an industry partner, including: product development with commercialization potential; and matching funds provided by the industry partner. Subject to paragraphs (2) and (3) of this subsection, the Initiative shall develop criteria to review, evaluate, and rate project proposals for funding under the Pilot Program. The Executive Director of the Initiative shall distribute grants to projects based on the criteria developed in accordance with paragraph (1) of this subsection. The Initiative shall give priority to project proposals that align with the mission of the Baltimore tech hub or artificial intelligence– and life science–oriented businesses. For fiscal years 2025 and 2026, the Governor shall include in the annual budget bill an appropriation of $1,500,000 for the Pilot Program. The funding provided in this subsection shall be used to supplement, not supplant, any funds that would otherwise be provided to the Initiative. 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, 2027, 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.

There is a Cybersecurity Investment Fund. The purpose of the Fund is to: provide seed and early–stage funding for emerging technology companies located in the State focused on cybersecurity and cybersecurity technology product development; maximize Corporation investments by supporting funded emerging technology companies to enable corporate growth and to obtain third–party downstream funding for commercialization; and leverage Corporation investments in early–stage cybersecurity companies by taking advantage of economic development opportunities throughout the State. The Corporation shall administer the Fund. The Fund consists of: appropriations as provided in the State budget; money made available to the Fund through federal programs or private contributions; repayment of capital or principal or payment of interest on any debt or equity investments from the Fund; investment earnings of the Fund; and any other money accepted by the Corporation for the Fund. The Corporation may use the Fund to: 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 pay the costs necessary to implement this part and to administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The State Treasurer shall invest the money in the Fund in the same manner as other State money may be invested. Any investment earnings of the Fund shall be credited to the Fund.

There is an Enterprise Fund in the Corporation. The Corporation may use the Fund to: make a grant or loan, at the rate of interest set by the Corporation; provide equity investment financing for a qualified business; guarantee a loan, equity, investment, or other private financing to expand the capital resources of a qualified business; purchase advisory services and technical assistance to better support economic development; 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 pay the administrative, legal, and actuarial expenses of the Corporation. The Corporation shall manage and supervise the Fund. The Fund is a special, nonlapsing revolving fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article. The Treasurer shall hold the Fund and the Comptroller shall account for it. The Fund consists of: money appropriated by the State to the Fund; money made available to the Fund through federal programs or private contributions; repayment of principal of a loan made from the Fund; payment of interest on a loan made from the Fund; 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; premiums, fees, royalties, interest, repayments of principal, and returns on investments paid to the Corporation by or on behalf of: a qualified business in which the Corporation has made an investment under this subtitle or Subtitle 4A of this title; or an investor providing an investment guaranteed by the Corporation under this subtitle or Subtitle 4A of this title; 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: a requirement that the Corporation receive a proportion of cash flow, commission, royalty, or payment on a patent; or the repurchase from the Corporation of any evidence of financial participation, including a note, stock, bond, or debenture; repayment of a conditional grant extended by the Corporation; money deposited into the Fund under § 10–4A–20(c)(2)(i) of this title; and any other money made available to the Corporation for the Fund. The Treasurer shall invest money in the Fund in the same manner as other State money. Any investment earnings of the Fund shall be credited to the Fund.

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. Whenever the Corporation is authorized by law to make a grant, the Corporation may use money appropriated for the grant to make an equity investment in a qualified business. 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%. 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%. Within 15 years after making an equity investment under this subtitle or Subtitle 4A of this title, the Corporation, on review and approval of the Corporation’s investment committee, may divest itself of that investment or pursue another remedy that is in the Corporation’s best interest. 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.

In this part the following words have the meanings indicated. “Fund” means the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund. “Program” means the Maryland Small Business Innovation Research and Technology Transfer Incentive Program. “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. “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.

To qualify for participation in the Program, a small business shall meet the criteria in this section. The small business shall: meet the qualifications of a qualified business; and 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. 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. 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.

An applicant shall submit an application for a Program award or investment on the form that the Corporation requires. The Program shall review the application and all supporting materials to evaluate whether the applicant qualifies for an award or investment from the Program. Subject to the availability of money in the Fund and paragraph (2) of this subsection, the Program may provide to an eligible small business an award or investment to match in part a small business innovation research award or small business technology transfer award. The Program shall prioritize providing awards and investments to eligible small businesses that are engaged in research and development activities that assist in the prevention of, preparedness for, or response to a public health crisis in the State. A small business may not receive: more than one award or investment during each fiscal year; and more than three awards or investments under this part. Subject to paragraph (2) of this subsection, each quarter, the Corporation shall provide awards and investments on a competitive basis to eligible small businesses. In providing an award or investment under this section, the Corporation: shall consider: the impact of the award or investment on the small business; and how the small business will utilize the award or investment toward commercialization of the research conducted by the small business; and may consider any additional criteria specified by the Corporation in regulation. The Program shall coordinate with comparable State and county programs to: conduct marketing and outreach, including conducting joint workshops, online training opportunities, and outreach to economically disadvantaged small businesses, minority–owned small businesses, women–owned small businesses, rural small businesses, and first–time small business innovation research award or small business technology transfer award applicants; and provide assistance to eligible businesses under this part.

There is a Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund. 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. The Corporation shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; repayments and earnings from investments made through the Program; money recaptured from businesses that fail to fulfill the terms and conditions of an award or investment made through the Program; interest earnings of the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used only for: 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 administrative expenses of the Program, including marketing, outreach, and technical assistance. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget.

There is an Inclusion Fund in the Corporation. The purpose of the Fund is to provide capital investment in technology–based businesses that: would qualify for investment under the Builder Fund, as provided in regulations adopted by the Corporation; are at least 30% owned by individuals who demonstrate economic disadvantage; and are controlled and managed for at least 1 year after the time of investment by an individual or individuals who demonstrate economic disadvantage. The Corporation shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; interest earnings of the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used only: for the purposes described in subsection (b) of this section; and to pay the costs necessary to administer the Fund. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any investment earnings of the Fund shall be credited to the Fund.

In this section, “Fund” means the Pre–Seed Builder Fund. There is a Pre–Seed Builder Fund in the Corporation. 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. The Corporation shall manage and supervise the Fund. The Fund is a special, nonlapsing revolving fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article. The Treasurer shall hold the Fund, and the Comptroller shall account for the Fund. For fiscal year 2023, the Governor shall include in the annual budget bill an appropriation of $5,000,000 to the Fund. For fiscal year 2024, the Governor shall include in the annual budget bill an appropriation of $6,200,000 to the Fund. 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. The Treasurer shall invest money in the Fund in the same manner as other State money. Any investment earnings of the Fund shall be credited to the Fund.

In this section the following words have the meanings indicated. “Fund” means the Maryland Equity Investment Fund. “Private equity” means an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange. “Qualified business” means a business that, at the time of the first investment in the business: 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; has agreed to use the qualified investment primarily to: support business operations in the State; or in the case of a start–up company, establish and support business operations in the State; has not more than 250 employees; and is not primarily engaged in: retail sales; real estate development; the business of insurance, banking, or lending; or the provision of professional services by accountants, attorneys, or physicians. “Several systems” has the meaning stated in § 20–201 of the State Personnel and Pensions Article. “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. There is a Maryland Equity Investment Fund in the Corporation. 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. The Corporation shall manage and supervise the Fund. The Fund is a special, nonlapsing revolving fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund, and the Comptroller shall account for the Fund. The Fund consists of: money distributed to the Fund under § 7–311 of the State Finance and Procurement Article; money appropriated in the State budget to the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used only: for the purposes described in subsection (c) of this section; and to pay the costs necessary to administer the Fund. The State Treasurer shall invest money in the Fund in the same manner as other State money. 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. The Corporation may retain 50% of investment returns realized from the investments made under this section.

In this section the following words have the meanings indicated. “Commission” means the Equitech Growth Commission. “Fund” means the Equitech Growth Fund. There is an Equitech Growth Fund in the Corporation. 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. The Corporation shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; interest earnings of the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund shall leverage investment from the private sector, funding from federal sources, and other sources of funding. The Fund may be used only: to make awards from the Fund in accordance with subsection (c) of this section; and to pay the costs of administering the Fund. 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. Awards from the Fund shall target: workforce development; and infrastructure that will attract and retain businesses in the State. Awards shall be consistent with the 10–year goals in the strategic plan developed by the Commission. 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. The Corporation shall adopt regulations to establish: a competitive application process; review criteria and procedures for making awards, including private leverage requirements for awards; 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 processes for ensuring that the programmatic funds and leveraged funds are invested within the State. 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.