Maryland HB 92: Video Lottery Terminals - Small, Minority, and Women-Owned Businesses Account - Transfer of Authority

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0092*

HOUSE BILL 92
C8 7lr0048
CF 7lr2173
By: Chair, Ways and Means Committee (By Request – Departmental – Commerce)
Introduced and read first time: January 16, 2017
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Video Lottery Terminals – Small, Minority, and Women–Owned Businesses 2
Account – Transfer of Authority 3

FOR the purpose of transferring the authority for the administration of the Small, 4
Minority, and Women–Owned Businesses Account from the Board of Public Works 5
to the Department of Commerce; making conforming changes; and generally relating 6
to the authority for the Small, Minority, and Women–Owned Businesses Account. 7

BY transferring 8
Article – State Government 9
Section 9–1A–35 10
Annotated Code of Maryland 11
(2014 Replacement Volume and 2016 Supplement) 12
to be 13
Article – Economic Development 14
Section 5–1501 15
Annotated Code of Maryland 16
(2008 Volume and 2016 Supplement) 17

BY repealing and reenacting, with amendments, 18
Article – Economic Development 19
Section 5–1501 to be under the new subtitle “Subtitle 15. Small, Minority, and 20
Women–Owned Businesses Account” 21
Annotated Code of Maryland 22
(2008 Volume and 2016 Supplement) 23
(As enacted by Section 1 of this Act) 24

BY repealing and reenacting, with amendments, 25
Article – State Government 26
Section 9–1A–27(a)(6) and (c)(1)(v) 27
Annotated Code of Maryland 28

2 HOUSE BILL 92

(2014 Replacement Volume and 2016 Supplement) 1

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2
That Section(s) 9–1A–35 of Article – State Government of the Annotated Code of Maryland 3
be transferred to be Section(s) 5–1501 of Article – Economic Development of the Annotated 4
Code of Maryland. 5

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 6
as follows: 7

Article – Economic Development 8

SUBTITLE 15. SMALL, MINORITY, AND WOMEN–OWNED BUSINESSES ACCOUNT 9

5–1501. 10

(a) There is a Small, Minority, and Women–Owned Businesses Account under the 11
authority of the [Board of Public Works] DEPARTMENT. 12

(b) (1) The Account shall receive money as required under § 9–1A–27 of [this 13
subtitle] THE STATE GOVERNMENT ARTICLE. 14

(2) Money in the Account shall be invested and reinvested by the Treasurer 15
and interest and earnings shall accrue to the Account. 16

(3) The Comptroller shall: 17

(i) account for the Account; and 18

(ii) on a properly approved transmittal prepared by the [Board of 19
Public Works] DEPARTMENT, issue a warrant to pay out money from the Account in the 20
manner provided under this section. 21

(4) The Account is a special, nonlapsing fund that is not subject to § 7–302 22
of the State Finance and Procurement Article. 23

(5) Expenditures from the Account shall only be made on a properly 24
approved transmittal prepared by the [Board of Public Works] DEPARTMENT as provided 25
under subsection (c) of this section. 26

(c) (1) In this subsection, “eligible fund manager” means an entity that has 27
significant financial or investment experience, under criteria developed by the [Board of 28
Public Works] DEPARTMENT. 29

HOUSE BILL 92 3

(2) Subject to the provisions of paragraph (3) of this subsection, the [Board 1
of Public Works] DEPARTMENT shall make grants to eligible fund managers to provide 2
investment capital and loans to small, minority, and women–owned businesses in the State. 3

(3) The [Board of Public Works] DEPARTMENT shall ensure that eligible 4
fund managers allocate at least 50% of the funds from this Account to small, minority, and 5
women–owned businesses in the jurisdictions and communities surrounding a video lottery 6
facility. 7

(d) Fund managers receiving grants under this section shall: 8

(1) keep proper records of funds and accounts; 9

(2) provide an annual report to the Governor and, in accordance with 10
§ 2–1246 of [this article] THE STATE GOVERNMENT ARTICLE, the General Assembly on 11
investment capital and loans made pursuant to subsection (c) of this section; and 12

(3) be subject to audit by the Office of Legislative Audits of the Department 13
of Legislative Services. 14

(e) (1) Subject to paragraph (2) of this subsection, an eligible fund manager 15
may use money from grants received under this section to pay expenses for administrative, 16
actuarial, legal, and technical services. 17

(2) The [Board of Public Works] DEPARTMENT shall set the maximum 18
amount of grant money that each eligible fund manager may use under paragraph (1) of 19
this subsection. 20

(f) The Legislative Auditor shall audit the utilization of the funds that are 21
allocated to small, minority, and women–owned businesses by eligible fund managers 22
under subsection (c)(3) of this section during an audit of the applicable State unit as 23
provided in § 2–1220 of [this article] THE STATE GOVERNMENT ARTICLE. 24

Article – State Gov