Ch. 623

1993 LAWS OF MARYLAND

(1991 Replacement Volume and 1992 Supplement)

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

Article 83A - Department of Economic and Employment Development

1-205.1.

(a)     In this section the term "Fund" means the Enterprise Fund established under
this section.

(b)     Where the Department is otherwise authorized by law to make grants, the
Department may require repayment, with interest at a rate to be determined by the
Department, of all or a portion of a grant upon the occurrence of conditions specified by
the Department.

(C) (1) WHERE THE DEPARTMENT IS OTHERWISE AUTHORIZED BY LAW TO
MAKE GRANTS, INCLUDING GRANTS AUTHORIZED UNDER § 7-314 OF THE STATE
FINANCE AND PROCUREMENT ARTICLE, THE DEPARTMENT MAY USE MONEYS
APPROPRIATED FOR GRANTS TO PROVIDE EQUITY INVESTMENT FINANCING FOR A
BUSINESS ENTERPRISE.

(2)      IN PROVIDING EQUITY INVESTMENT FINANCING UNDER THIS
SUBSECTION, THE DEPARTMENT MAY NOT ACQUIRE AN OWNERSHIP INTEREST IN
THE ENTERPRISE IN WHICH THE EQUITY INVESTMENT IS MADE THAT EXCEEDS 25
PERCENT.

(3)     THE DEPARTMENT SHALL DIVEST ITSELF FROM ANY ENTERPRISE IN
WHICH AN EQUITY INVESTMENT IS MADE UNDER THIS SUBSECTION WITHIN 15 .
YEARS AFTER MAKING THE INVESTMENT.

(4)     THE LIABILITY OF THE STATE AND OF THE DEPARTMENT IN
PROVIDING EQUITY INVESTMENT FINANCING UNDER THIS SUBSECTION IS LIMITED
TO ITS INVESTMENTS UNDER THIS SUBSECTION.

(5)     THE DEPARTMENT SHALL ADOPT REGULATIONS SPECIFYING:

(I) THE TYPES OF BUSINESS ENTERPRISES IN WHICH
INVESTMENTS MAY BE MADE UNDER THIS SUBSECTION AND THE BASIC STANDARDS
AN ENTERPRISE IS REQUIRED TO MEET TO QUALIFY FOR INVESTMENTS UNDER
THIS SUBSECTION: AND

(II) THE AMOUNT OF FUNDS AVAILABLE FOR INVESTMENTS
UNDER THIS SUBSECTION AND THE CRITERIA UPON WHICH INVESTMENT DECISIONS
WILL BE MADE BY THE DEPARTMENT.

[(c)](D) There is an Enterprise Fund in the Department established as a
nonlapsing, revolving special fund managed and supervised by the Secretary.                   

[(d)](E) The Fund may consist of any of the following:

(1) Moneys appropriated by the State to the Fund;

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