Ch. 125

1996 LAWS OF MARYLAND

relative to the technology which the incubator space facilitated in
development. Reimbursement shall apply only if 40% or more of
the company's employment is transferred outside Maryland. Full
reimbursement will apply to companies that leave the State of
Maryland during the first two years after graduating from the
incubator and shall be applied on a scale which declines to zero on
the fifth anniversary of graduation. Such agreement is in addition
to, not in lieu of, any existing contractual provision applicable to
present users., provided that all entrepreneurs occupying incubator
space shall agree in writing to reimburse the University 1-1/2 times the
costs associated with space use and rental or to increase the
University's equity holding in the company by 1-1/2 times if at any
time within five years of graduation the company voluntarily relocates
more than 40 percent of the company's total employment outside the
State of Maryland. Full reimbursement shall apply to companies that
exceed the out-of-state limit within two years of graduation from the
incubator, 75 percent if within three years, 60 percent if within four
years, and 25 percent if within five years. Provided, however, that for
each year that an incubator graduate adds at least ten full-time
Maryland resident employees, it shall offset for one year of subsidy
repayment or increase in equity held by the University. The State of
Maryland is vitally interested in attracting and retaining new businesses
through a number of innovative programs such as incubator subsidies.
The intent is not to penalize, but to provide incentive to companies to
remain in Maryland.

Further provided that preference shall be given to clients
graduating from State university affiliated incubators in the leasing
of the approximately 54,000 net square feet of this facility intended
for use by post-incubator companies. These clients shall be
screened and identified by the Regional Incubator Board
(Baltimore County).............................................................................

(C)    Maryland Technology Center. Provide a grant to the Maryland
Economic Development Corporation to assist in the construction
of the Maryland Technology Center, provided that no funds may
be expended until Montgomery County has developed a policy for
incubator tenants which includes repayment of public subsidies in
the event that the company leaves the State within five years of
graduating from the incubator. The policy should be presented to
the budget committees for review and comment.
Further provided that no space in this facility shall be made
available for use by the Maryland Information Technology Center
(MITC) and any space originally designed for the MITC should be
reprogrammed to accommodate incubator tenants (Montgomery
County)................................................................................................

(D)    Maryland State Welcome Center. Provide a grant to the Mayor

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4,000,000

5,000,000