Chapter 14. Maryland Export Credit Program

These regulations prescribe the policies and procedures that govern the activities of the Maryland Export Credit Program.

Under the Maryland Export Credit Program the State, through action of the Board of Public Works, may assign to business enterprises offset credits accrued by the State.

The basic objective of the Program is to encourage the exportation by business enterprises located in Maryland of goods and services to foreign purchasers by assigning to those business enterprises offset credits accrued by the State.

This objective is to be accomplished in a way that:

In this chapter, the following terms have the meanings indicated.

Terms Defined.

The Department shall maintain records of purchases by the State resulting in offset credits to the State.

The records specified in §A of this regulation shall include the following information:

From time to time the State shall advertise in the Maryland Register the availability of offset credits with an estimated value of $10,000 or greater and, at the Director's discretion, offset credits with an estimated value of less than $10,000.

The Director shall maintain a list of business enterprises that have expressed an interest in applying for assignment of offset credits relating to a particular foreign country, and shall inform those business enterprises of the availability of offset credits relating to that country.

The Director may, in addition, advertise the availability of offset credits to business enterprises through any other means.

The consideration required for the assignment of offset credits to a business enterprise shall be as determined by the Board upon recommendation of the Secretary.

Consideration may consist of benefits derived by the State from creation of new contract opportunities that create new jobs and new capital investment in the State.

Consideration payable to the State shall be credited to the State's General Fund.

The preferred method for the award of offset credits is by competitive applications.

The Program's request for applications shall include:

The name, address, and telephone number of the applicant and the name and title of the applicant's authorized representative for the application process;

Whether the applicant is seeking the offset credits to carry out an existing foreign contract as either a prime contractor or subcontractor or intends to bid on a foreign contract;

If the applicant is or intends to be a subcontractor, the name, address, and telephone number of the prime contractor, and the name of a contact person for the prime contractor;

The name of the foreign country to which the applicant intends to export its goods or services and the name, address, and telephone number of the purchaser in that country, and of the contact person for offset approval authority;

The date that the applicant entered into or anticipates entering into the foreign contract;

The estimated total value of the foreign contract during the term of the foreign contract;

The amount of the offset credits requested by the applicant;

The estimated number of jobs to be created or retained in the State as a result of the performance of the foreign contract during the term of the foreign contract, and the estimated value of the salaries and wages to be expended in the State;

The estimated value of the capital investment in the State to be generated by the foreign contract;

The estimated value of contracts to be awarded to subcontractors in the State, and to suppliers of goods and services in the State, resulting from the foreign contract;

Any cash payment the applicant will make to the State in consideration of assignment of the offset credits;

Any other activities of benefit to the State and its citizens that the applicant will carry out if assigned offset credits; and

Whether the applicant considers any of the information provided in the application to be confidential commercial or confidential financial information, pursuant to State Government Article, §10-617, Annotated Code of Maryland.

Evaluation.

Classification of Applications.

Discussions. Discussions and negotiations may be held with all qualified applicants to:

If no applications are received in response to the request for applications, the Director may solicit applications directly without republication of notice.

Best and Final Offers.

Preliminary Determination.

Execution by an applicant of an assignment agreement; and

Copies of the:

Approval by the Secretary.

Final Approval by the Board of Public Works. The Board, in its discretion, may approve the assignment as recommended by the Secretary, or conditionally upon modification of its terms. Upon recommendation of the assignment by the Secretary and upon any modification of the terms of the assignment as may be required by the Board, the Board shall execute or authorize the Secretary to execute, on behalf of the State, the assignment agreement and any other documents evidencing the assignment.

Reporting Requirements. The business enterprise shall send a written report to the Director indicating the actions taken by the foreign offset authority, including the dollar amount of offset credits accepted by the foreign offset authority.

The Director, with the approval of the Secretary, may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the State Finance and Procurement Article, §10-305, Annotated Code of Maryland.

A waiver is subject to the Board's prior approval.