Ch. 222 LAWS OF MARYLAND

(1) SMALL BUSINESSES ARE A MAJOR SOURCE OF NEW JOBS
AND INNOVATIONS IN THE STATE;

(2) THE STATE'S RESEARCH CAPACITY COULD SPUR
INNOVATION IN NEW AND EXISTING BUSINESSES TO CREATE AND
MAINTAIN JOBS IN THE STATE; AND

(3) AN INADEQUATE SUPPLY OF SEED AND VENTURE CAPITAL
HAS LIMITED THE COMMERCIALIZATION OF RESEARCH AND
DEVELOPMENT ACTIVITY IN THE STATE.

(B) THE GENERAL ASSEMBLY INTENDS THAT THE MARYLAND
VENTURE CAPITAL TRUST SHALL:

(1) HELP FILL THE CRITICAL GAP IN THE STATE'S ECONOMY
CAUSED BY THE INADEQUATE SUPPLY OF SEED AND VENTURE CAPITAL
FUNDS; AND

(2) STIMULATE THE COMMERCIALIZATION OF RESEARCH
AND DEVELOPMENT TO CREATE AND SUSTAIN BUSINESSES
THROUGHOUT THE STATE IN ALL REGIONS OF THE STATE.

5-1A-04.

(A) THE TRUST IS A BODY POLITIC AND CORPORATE AND IS
CONSTITUTED AS A PUBLIC INSTRUMENTALITY OF THE STATE.

(B) A BOARD OF TRUSTEES SHALL MANAGE THE TRUST AND SHALL
EXERCISE ALL OF ITS CORPORATE POWERS.

(C) (1) THE GOVERNOR SHALL APPOINT 7 INDIVIDUALS, ALL OF
WHOM MUST BE CITIZENS OF THE STATE, TO CONSTITUTE THE TRUSTS
BOARD OF TRUSTEES WITH THE ADVICE AND CONSENT OF THE SENATE,
TO CONSTITUTE THE TRUST'S BOARD OF TRUSTEES. THE BOARD OF
TRUSTEES SHALL BE CITIZENS OF THE STATE. IN APPOINTING THE
TRUSTEES, THE GOVERNOR SHALL GIVE DUE CONSIDERATION TO
GEOGRAPHIC REPRESENTATION OF THE STATE.

(2) EACH TRUSTEE SHALL SERVE AT THE PLEASURE OF THE
GOVERNOR WITHOUT COMPENSATION, EXCEPT THAT EACH TRUSTEE
SHALL BE ENTITLED TO REIMBURSEMENT FOR EXPENSES UNDER THE
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE
BUDGET.

(3) FOUR OF THE TRUSTEES SHALL REPRESENT THE
PARTICIPATING INVESTORS AND EACH MUST HAVE BEEN
RECOMMENDED TO THE GOVERNOR AS A TRUSTEE BY THE
PARTICIPATING INVESTORS.

(4) AT LEAST 1 TRUSTEE MUST HAVE EXPERTISE IN VENTURE
CAPITAL FINANCING.

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