S.B. 810                                                  VETOES

(2)     Enter into agreements with the participating investors setting forth the
terms governing the investment of money in the Trust by the participating investors;

(3)     By preparing and publishing requests for proposals, solicit offerings by
venture capitalists and venture capital funds that meet the purposes and requirements of
the Trust, which shall be set forth in the requests for proposals;

(4)     Select certain venture capital funds in which to invest money from the
Trust, subject to the requirements set forth in [§ 5-1A-06] § 5-306 of this subtitle;

(5)     Invest in any venture capital funds selected by the Trust in amounts
deemed appropriate by the Board of Trustees;

(6)     Retain investment earnings in excess of investment earnings the Trust is
required to pay the participating investors; and

(7)     Do all things necessary and lawful to carry out the powers expressly
granted to the Trust by this subtitle.

(b)     The Trust may not hold or accept from any single investor a cumulative total
in principal investments in excess of $5,000,000.

(c)     The Trust may not accept more than a cumulative investment of $15 million
from the State Retirement and Pension System.

[5-1A-06.] 5-306.

(a)     The trustees shall give preference to venture capital fund proposals that:

(1)     Provide financing predominantly to business enterprises that conduct a
substantial amount of business in the State;

(2)     Require venture capital funds to match the money invested by the Trust
with money invested by private investors on at least a 1 to 3 ratio; and

(3)     Ensure that a majority of the money invested by the Trust be for seed
capital financing in Maryland.

(b)     Seed capital investments shall not exceed more than $1 million for any one
business.

[5-1A-07.] 5-307.

(a)     The books and records of the Trust shall be subject to audit by the State at its
discretion and annually by an independent auditor approved by the State, at the expense
of the Trust.

(b)     (1) The Trust shall report to the Governor, THE MARYLAND ECONOMIC
DEVELOPMENT COMMISSION, and, subject to §2-1312 of the State Government Article,
to the General Assembly, within the first 90 days of each fiscal year.

(2) The report shall set forth the complete operating and financial
statement covering the Trust's operations and summarize the Trust's activities during the
preceding fiscal year.

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