H.B. 85                                                   VETOES

(c) If the applicant is other than a sole proprietorship, at least 70 percent of the
business enterprise shall be owned by individuals who meet the qualifications for
applicants under subsection (b) of this section.

5-1046.

(a)     Under the Program, the Authority may provide equity participation financing,
including the purchase of qualified securities issued by a franchise, by a technology-based
business, or by an enterprise acquiring an existing business, only after the enterprise has
submitted an application that contains a business plan, including:

(1)     A description of the franchisor, technology-based business, or existing
business and its management, product, and market;

(2)     A statement of the amount, immediacy of need, and projected use of the
capital required;

(3)     A statement of the potential economic impact of the purchase;

(4)     Information that relates to the satisfaction of the applicant's
requirements of [§5-1025] SUBSECTIONS (F) AND (G) of this [subtitle] SECTION; and

(5)     Any other information the Authority requires.

(b)     Under the Program, any equity participation financing shall satisfy the
following requirements:

(1)     The Authority may not:

(i) 1. Own securities representing more than 45 percent of the
voting stock of any franchise or technology-based business; or

2. Own an interest greater than 45 percent in any franchise or
technology-based business; or

(ii) 1. Own securities representing more than 25 percent of the
voting stock of any enterprise acquiring an existing business; or

2. Own an interest greater than 25 percent in any enterprise
acquiring an existing business.

(2)     The amount of the Authority's equity participation financing may not
exceed:

(i) 1: [$100,000] $500,000 for any franchise; or

2. 45 percent of the total initial investment in the franchise;

(ii) 1. $500,000 for any enterprise acquiring an existing business; or

2. 25 percent of the total investment in the enterprise acquiring
an existing business; or

(iii) $500,000 for a technology-based business.
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