# COMAR Title 14 — Independent Agencies

## Subtitle 04 — Maryland Technology Development Corporation

### Chapter 07 — Investment Committee

**Authority:** Economic Development Article, §§10-408 and 10-4A-27, Annotated Code of Maryland

**Administrative History:** Effective date: December 30, 2019 (46:26 Md. R. 1167)

**Administrative History:** Regulation .04A amended effective February 22, 2021 (48:4 Md. R. 178); February 21, 2022 (49:4 Md. R. 302)

#### Regulation .01 Purpose.

*COMAR 14.04.07.01*

These regulations establish the Investment Committee of the Board and prescribe the responsibilities of the Investment Committee and the procedures of the Board to appoint the members of the Investment Committee.

#### Regulation .02 Objective.

*COMAR 14.04.07.02*

The objective of the Investment Committee is to advise on and approve the investments as required under the Act.

#### Regulation .03 Investment Committee Established.

*COMAR 14.04.07.03*

A. Established. There is an Investment Committee of the Board.

B. Composition. The Investment Committee shall consist of three directors. Each member of the Investment Committee shall serve for a term of 1 year and until the director’s successor is duly appointed and qualifies.

C. Procedures for Appointment. The Board shall elect the members of the Investment Committee by the same procedures as set forth in the TEDCO Bylaws that the Board uses for the election of officers. In considering directors for appointment to the Investment Committee, the Board and any nominating committee of the Board shall consider appropriate qualifications for serving on the Investment Committee, including:

  (1) Relevant professional experience or education in economic development, economics, public policy, investment, finance, or diverse communities; and

  (2) Potential conflicts that may impair the director’s ability to participate in the matters before the Investment Committee.

D. Procedures of Investment Committee. A majority of Investment Committee members present in person shall constitute a quorum for the transaction of business at a meeting. All matters brought before the Investment Committee at a properly constituted meeting shall be approved by a majority of the Investment Committee members present. All other procedures of the Committee, including procedures for consents without a meeting and remote meetings, shall be governed by the TEDCO Bylaws or the Investment Committee charter.

#### Regulation .04 Standards for Review and Approval of Investments.

*COMAR 14.04.07.04*

A. Responsibilities of the Committee.

  (1) Consider and Determine Substantial Economic Impact. Upon request by Chief Executive Officer of TEDCO, the Investment Committee shall determine whether an investment in a business will have a substantial economic impact in the State. If the Investment Committee determines that an investment will have a substantial economic impact in the State, the Investment Committee shall authorize TEDCO to make the investment. If the Investment Committee does not determine that the investment will have a substantial economic impact in the State, the Investment Committee may not authorize TEDCO to make the investment.

  (2) Monitor Investments. In addition to any other meeting for the purpose of approving an investment under §A(1) of this regulation, the Investment Committee shall meet at least two times per year to review:

    (a) Investments in businesses which TEDCO staff has determined are no longer qualified businesses or no longer satisfy §10-401(g)(1)(i) of the Act; and

    (b) Reports issued by TEDCO in accordance with §10-415 of the Act.

  (3) Post-Investment Determinations. For the first 5 years after making an investment, if TEDCO identifies a business that ceases to be a qualified business, TEDCO shall notify the Investment Committee. To the extent possible and available, TEDCO shall deliver to the Investment Committee information sufficient for the Investment Committee to determine whether the business has had a substantial economic impact in the State or is reasonably projected to have a substantial economic impact in the State.

  (4) Information Considered. In considering whether an investment has had or will have a substantial economic impact in the State, the Investment Committee may rely on information provided by TEDCO and may conduct its own investigation.

B. Substantial Economic Impact in the State. The Investment Committee shall determine that a proposed investment in a business will have a substantial economic impact in the State if the proposed investment is reasonably projected to meet the following measures:

  (1) For the first $100,000 to be invested by TEDCO, the business will create at least five jobs in the State within 3 years from the date of the investment;

  (2) For each $20,000 to be invested in addition to $100,000, the business will create at least one job within 3 years of the investment;

  (3) The business will make capital investments in the State in an amount not less than two times the dollar value of the investment by TEDCO within 3 years from the date of the investment; and

  (4) The business shall make a contribution to the State’s technology ecosystem in terms of:

    (a) A return on the investment to TEDCO to be used for subsequent investment in the State;

    (b) The development of products and services beneficial to companies and other persons in the State;

    (c) The potential to attract management or additional venture financing to businesses based in the State; or

    (d) The development of successful entrepreneurs from diverse communities in the State or the support of communities whose economic development has been impeded by economic distress.