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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1596*
HOUSE BILL 1596
C8 6lr3699
CF SB 763
By: Delegate Qi
Introduced and read first time: February 15, 2026
Assigned to: Rules and Executive Nominations
A BILL ENTITLED
AN ACT concerning 1
Maryland Technology Development Corporation – Maryland Growth Initiative – 2
Established 3
FOR the purpose of establishing the Maryland Growth Initiative in the Maryland 4
Technology Development Corporation to support the growth of start–up companies; 5
requiring the Initiative to create a certain list of companies in the State that are 6
between certain growth phases according to a certain priority; establishing the 7
Maryland Growth Initiative Fund to be administered by the Corporation as a special, 8
nonlapsing fund; requiring the interest earnings of the Fund to be credited to the 9
Fund; requiring the Governor to include an appropriation in the annual budget bill 10
for the Initiative; and generally relating to the Maryland Growth Initiative. 11
BY adding to 12
Article – Economic Development 13
Section 10 –4E–01 through 10 –4E–05 to be under the new subtitle “Subtitle 4E. 14
Maryland Growth Initiative” 15
Annotated Code of Maryland 16
(2024 Replacement Volume and 2025 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – State Finance and Procurement 19
Section 6–226(a)(2)(i) and (ii) 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2025 Supplement) 22
BY repealing and reenacting, with amendments, 23
Article – State Finance and Procurement 24
Section 6–226(a)(2)(iii)212. and 213. 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2025 Supplement) 27
2 HOUSE BILL 1596
BY adding to 1
Article – State Finance and Procurement 2
Section 6–226(a)(2)(iii)214. 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2025 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – State Government 7
Section 9–4119(a) 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Economic Development 13
SUBTITLE 4E. MARYLAND GROWTH INITIATIVE. 14
10–4E–01. 15
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17
(B) “CORPORATION” MEANS THE MARYLAND TECHNOLOGY 18
DEVELOPMENT CORPORATION. 19
(C) “FUND” MEANS THE MARYLAND GROWTH INITIATIVE FUND. 20
(D) “INITIATIVE” MEANS THE MARYLAND GROWTH INITIATIVE. 21
10–4E–02. 22
(A) THERE IS A MARYLAND GROWTH INITIATIVE IN THE CORPORATION. 23
(B) THE PURPOSE OF THE INITIATIVE IS TO SUPPORT TH E GROWTH OF 24
START–UP COMPANIES IN THE STATE BY: 25
(1) IDENTIFYING PROMISIN G COMPANIES IN THE P HASE BETWEEN 26
EARLY START–UP DEVELOPMENT AND SCALING; 27
(2) PROVIDING ACCESS TO EXPERTS IN REGULATOR Y PROCESSES , 28
MANUFACTURING, CLINICAL TRIALS, MARKET LAUNCHES , AND OTHER AREAS OF 29
BUSINESS; 30
HOUSE BILL 1596 3
(3) FACILITATING PRIVATE INVESTMENT IN COMPANIES; 1
(4) ASSISTING IN THE ACQUISITION OF INFRASTRUCTURE INCLUDING 2
OFFICE SPACE, EQUIPMENT, AND SUPPORT FOR PRODUCT DEVELOPMENT; AND 3
(5) PROVIDING TECHNICAL AND BUSINESS EXPERTISE. 4
10–4E–03. 5
(A) THERE IS A MARYLAND GROWTH INITIATIVE FUND. 6
(B) THE PURPOSE OF THE FUND IS TO PROVIDE PO STSEED AND SERIES A 7
FUNDING TO QUALIFIED BUSINESSES IN THE STATE TO SCALE UP WITHOUT NEEDING 8
TO RELOCATE. 9
(C) THE CORPORATION SHALL ADMINISTER THE FUND. 10
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 11
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
(2) THE TREASURER SHALL HOLD THE FUND SEPARATELY, AND THE 13
COMPTROLLER SHALL ACCOUNT FOR THE FUND. 14
(E) THE FUND CONSISTS OF: 15
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 16
(2) PUBLIC AND PRIVATE INVESTMENT FUNDS; 17
(3) INTEREST EARNINGS; AND 18
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 19
THE BENEFIT OF THE FUND. 20
(F) THE FUND MAY BE USED ONLY: 21
(1) FOR THE PURPOSES DES CRIBED IN SUBSECTION (B) OF THIS 22
SECTION; AND 23
(2) TO PAY THE COSTS NECESSARY TO ADMINISTER THE INITIATIVE. 24
(G) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 25
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 26
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(2) ANY INVESTMENT EARNINGS OF THE FUND SHALL BE CREDITE D 1
TO THE FUND. 2
(H) (1) THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL 3
AN APPROPRIATION OF $5,000,000 FOR THE INITIATIVE. 4
(2) THE FUNDING PROVIDED IN THIS SUBSECTION SHALL BE USED TO 5
SUPPLEMENT, NOT SUPPLANT, ANY FUNDS THAT WOULD OTHERWISE BE PROVIDED 6
TO THE INITIATIVE. 7
10–4E–04. 8
(A) THE INITIATIVE SHALL CREATE A CURATED LIST OF COMPANIES IN THE 9
STATE THAT ARE BETWEEN THE START–UP AND SCALING PHASES. 10
(B) PRIORITY SHALL BE GIVEN TO COMPANIES THAT ARE: 11
(1) CURRENT OR PRIOR REC IPIENTS OF FUNDING F ROM THE 12
MARYLAND INNOVATION INITIATIVE; 13
(2) CURRENT OR PRIOR REC IPIENTS OF FUNDING F ROM ANY OTHER 14
PROGRAM ADMINISTERED BY THE CORPORATION; AND 15
(3) MINORITY BUSINESS ENTERPRISES DESCRIBED IN § 9–4119(A) OF 16
THE STATE GOVERNMENT ARTICLE. 17
10–4E–05. 18
THE CORPORATION MAY ADOPT REGULATIONS TO IMPLE MENT THIS 19
SUBTITLE. 20
Article – State Finance and Procurement 21
6–226. 22
(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 23
(ii) Notwithstanding any other provision of law, and unless 24
inconsistent with a federal law, grant agreement, or other federal requirement or with the 25
terms of a gift or settlement agreement, net interest on all State money allocated by the 26
State Treasurer under this section to special funds or accounts, and otherwise entitled to 27
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 28
Fund of the State. 29
HOUSE BILL 1596 5
(iii) The provisions of subparagraph (ii) of this paragraph do not 1
apply to the following funds: 2
212. the Department of Social and Economic Mobility Special 3
Fund; [and] 4
213. the Population Health Improvement Fund; AND 5
214. THE MARYLAND GROWTH INITIATIVE FUND. 6
Article – State Government 7
9–4119. 8
(a) This section applies to the following minority business enterprises: 9
(1) a publicly owned business if 1 or more minority persons own at least 10
51% of the stock of the business; or 11
(2) any other business if 1 or more minority persons own at least 50% of 12
the business. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
October 1, 2026. 15