Title 10. Statewide Development Resources and Revenue Authorities — Subtitle 7. Maryland Venture Capital Trust

“Seed capital financing” means financing provided to a business during the initial stages of its development.

“Seed capital financing” includes financing for a business:

small businesses are a major source of new jobs and innovations in the State;

the State’s research capacity could spur innovation in new and existing businesses to create and maintain jobs in the State; and

an inadequate supply of seed capital financing and venture capital funds has limited the commercialization of research and development in the State.

help fill the gap in the State’s economy caused by the inadequate supply of seed capital financing and venture capital funds; and

stimulate the commercialization of research and development to create and sustain businesses throughout the State.

The Board consists of seven members appointed by the Governor with the advice and consent of the Senate.

Of the seven members:

Each member shall be a resident of the State.

The Governor shall consider geographic diversity of the State when appointing members of the Board.

The term of a member is 4 years.

The terms of members are staggered as required by the terms provided for members of the Board on October 1, 2008.

At the end of a term, a 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.

The Governor may remove a member with or without cause.

A majority of the members then serving on the Board is a quorum.

A majority vote of the members present at a meeting having a quorum is needed for the Board to act.

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.

shall manage the Trust; and

exercises all of the corporate powers of the Trust.

exempt from the General Procurement Law provisions of Division II of the State Finance and Procurement Article; but

subject to Title 12, Subtitle 4 of the State Finance and Procurement Article.

solicit and accept for investment in the Trust money from any source including not more than $2,000,000 in appropriations from the State;

enter into agreements with the investors that set forth the terms governing the investment of money in the Trust by the investors;

by preparing and publishing requests for proposals, solicit offerings by venture capitalists and venture capital funds that meet the purposes and requirements of the Trust, which shall be set forth in the requests for proposals;

subject to § 10-708 of this subtitle, select the venture capital funds in which to invest money from the Trust;

retain investment earnings that exceed the investment earnings that the Trust must pay to investors; and

take any action necessary to carry out the powers expressly granted by this subtitle.

The Trust may not accept a cumulative investment of more than $15,000,000 from the State Retirement and Pension System.

The Trust may not accept a cumulative investment of more than $5,000,000 from any other single investor.