Maryland HB 386: Anne Arundel County and City of Annapolis - Small, Minority, and Women-Owned Businesses Account - Local State of Emergency

Bill Text

LAWRENCE J. HOGAN, JR., Governor Ch. 490

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Chapter 490
(House Bill 386)

AN ACT concerning

Anne Arundel County and City of Annapolis – Small, Minority, and
Women–Owned Businesses Account – Local State of Emergency

FOR the purpose of expanding the eligible uses of the Small, Minority, and Women–Owned
Businesses Account to include the provision of certain grants and the conversion of
certain loan amounts into grants in areas Anne Arundel County and the City of
Annapolis when in a declared a local state of emergency; limiting the amount of
certain grants and loan amounts converted to grants that may be provided to a
certain business; establishing the Workgroup to Study the Establishment of a State
Disaster Relief Fund; and generally relating to the Small, Minority, and
Women–Owned Businesses Account.

BY repealing and reenacting, with amendments,
Article – Economic Development
Section 5–1501
Annotated Code of Maryland
(2018 Replacement Volume and 2021 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

Article – Economic Development

5–1501.

(a) There is a Small, Minority, and Women–Owned Businesses Account under the
authority of the Department.

(b) (1) (i) The Account shall receive money as required under § 9–1A–27 of
the State Government Article.

(ii) The Account shall receive money from the Strategic Energy
Investment Fund as required under § 9–20B–05 of the State Government Article.

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

(3) The Comptroller shall:

(i) account for the Account; and

Ch. 490 2022 LAWS OF MARYLAND

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(ii) on a properly approved transmittal prepared by the Department,
issue a warrant to pay out money from the Account in the manner provided under this
section.

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

(5) Expenditures from the Account shall only be made on a properly
approved transmittal prepared by the Department as provided under subsection (c) of this
section.

(c) (1) In this subsection, “eligible fund manager”:

(i) means an entity that has significant financial or investment
experience, under criteria developed by the Department; and

(ii) includes an entity that the Department designates to manage
funds received under subsection (b)(1)(i) of this section.

(2) Subject to the provisions of paragraph (3) of this subsection and
subsection (i) of this section AND SUBJECT TO SUBSECTION (I) OF THIS SECTION, the
Department shall make grants to eligible fund managers to provide investment capital and
loans to small, minority, and women–owned businesses in the State.

(3) Except for money received from the Strategic Energy Investment Fund,
the Department shall ensure that eligible fund managers allocate at least 50% of the funds
from this Account to small, minority, and women–owned businesses in the jurisdictions and
communities surrounding a video lottery facility.

(d) (1) Any money received from the Strategic Energy Investment Fund shall
be used to benefit small, minority, women–owned, and veteran–owned businesses in the
clean energy industry in the State.

(2) The Department shall make grants to eligible fund managers to provide
investment capital, including direct equity investments and similar investments and loans
to small, minority, women–owned, and veteran–owned businesses in the clean energy
industry in the State.

(e) Fund managers receiving grants under this section shall:

(1) keep proper records of funds and accounts;

(2) provide an annual report to the Governor and, in accordance with §
2–1257 of the State Government Article, the General Assembly on investment capital and
loans made pursuant to subsection (c) of this section; and

LAWRENCE J. HOGAN, JR., Governor Ch. 490

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

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

(2) The Department shall set the maximum amount of grant money that
each eligible fund manager may use under paragraph (1) of this subsection.

(g) (1) Subject to paragraphs (2) through (4) of this subsection, an eligible fund
manager may use money from a grant received under subsection (d)(1) of this section to pay
ordinary and reasonable expenses for administrative, actuarial, legal, marketing, and
technical services and management fees.

(2) The Department shall:

(i) maintain all money received from the Strategic Energy
Investment Fund in a single account; and

(ii) make grant allocations to an eligible fund manager as the
manager advises the Department that the manager has approved and prepared to fund an
investment or a loan.

(3) Any alloc