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*sb0763*
SENATE BILL 763
C8 6lr2424
CF HB 1596
By: Senator Guzzone
Introduced and read first time: February 6, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 1, 2026
CHAPTER ______
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 prio rity; 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 an nual 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
2 SENATE BILL 763
BY repealing and reenacting, with amendments, 1
Article – State Finance and Procurement 2
Section 6–226(a)(2)(iii)212. and 213. 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2025 Supplement) 5
BY adding to 6
Article – State Finance and Procurement 7
Section 6–226(a)(2)(iii)214. 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10
BY repealing and reenacting, without amendments, 11
Article – State Government 12
Section 9–4119(a) 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2025 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Economic Development 18
SUBTITLE 4E. MARYLAND GROWTH INITIATIVE. 19
10–4E–01. 20
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 21
INDICATED. 22
(B) “CORPORATION” MEANS THE MARYLAND TECHNOLOGY 23
DEVELOPMENT CORPORATION. 24
(C) “FUND” MEANS THE MARYLAND GROWTH INITIATIVE FUND. 25
(D) “INITIATIVE” MEANS THE MARYLAND GROWTH INITIATIVE. 26
10–4E–02. 27
(A) THERE IS A MARYLAND GROWTH INITIATIVE IN THE CORPORATION. 28
(B) THE PURPOSE OF THE INITIATIVE IS TO SUPP ORT THE GROWTH OF 29
START–UP COMPANIES IN THE STATE BY: 30
SENATE BILL 763 3
(1) IDENTIFYING PROMISIN G COMPANIES IN THE P HASE BETWEEN 1
EARLY START–UP DEVELOPMENT AND SCALING; 2
(2) PROVIDING ACCESS TO EXPERTS IN REGULATOR Y PROCESSES , 3
MANUFACTURING, CLINICAL TRIALS , MARKET LAUNCHES , AND OTHER AREAS OF 4
BUSINESS; 5
(3) FACILITATING PRIVATE INVESTMENT IN COMPANIES; 6
(4) ASSISTING IN THE ACQUISITION OF INFRASTRUCTURE INCLUDING 7
OFFICE SPACE, EQUIPMENT, AND SUPPORT FOR PRODUCT DEVELOPMENT; AND 8
(5) PROVIDING TECHNICAL AND BUSINESS EXPERTISE. 9
10–4E–03. 10
(A) THERE IS A MARYLAND GROWTH INITIATIVE FUND. 11
(B) THE PURPOSE OF THE FUND IS TO PROVIDE PO STSEED AND SERIES A 12
FUNDING TO QUALIFIED BUSINESSES IN THE STATE TO SCALE UP WITHOUT NEEDING 13
TO RELOCATE. 14
(C) THE CORPORATION SHALL ADMINISTER THE FUND. 15
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 16
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 17
(2) THE TREASURER SHALL HOLD THE FUND SEPARATELY, AND THE 18
COMPTROLLER SHALL ACCOUNT FOR THE FUND. 19
(E) THE FUND CONSISTS OF: 20
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 21
(2) PUBLIC AND PRIVATE INVESTMENT FUNDS; 22
(3) INTEREST EARNINGS; AND 23
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 24
THE BENEFIT OF THE FUND. 25
(F) THE FUND MAY BE USED ONLY: 26
4 SENATE BILL 763
(1) FOR THE PURPOSES DES CRIBED IN SUBSECTION (B) OF THIS 1
SECTION; 2
(2) FOR THE PURPOSES DESCRIBED IN § 10–4E–02 OF THIS SUBTITLE; 3
AND 4
(2) (3) TO PAY THE COSTS NEC ESSARY TO ADMINISTER THE 5
INITIATIVE. 6
(G) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 7
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 8
(2) ANY INVESTMENT EARNINGS OF THE FUND SHALL BE CREDITE D 9
TO THE FUND. 10
(H) (1) THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL 11
AN APPROPRIATION OF $5,000,000 FOR THE INITIATIVE. 12
(2) THE FUNDING PROVIDED IN THIS SUBSECTION SHALL BE USED TO 13
SUPPLEMENT, NOT SUPPLANT, ANY FUNDS THAT WOULD OTHERWISE BE PROVIDED 14
TO THE INITIATIVE. 15
10–4E–04. 16
(A) THE INITIATIVE SHALL CREATE A CURATED LIST OF COMPANIES IN THE 17
STATE THAT ARE BETWEEN THE START–UP AND SCALING PHASES. 18
(B) PRIORITY SHALL BE GIVEN TO COMPANIES THAT ARE: 19
(1) CURRENT OR PRIOR RECIPIENTS OF FUNDING FROM THE 20
MARYLAND INNOVATION INITIATIVE; 21
(2) CURRENT OR PRIOR REC IPIENTS OF FUNDING F ROM ANY OTHER 22
PROGRAM ADMINISTERED BY THE CORPORATION; AND 23
(3) MINORITY BUSINESS ENTERPRISES DESCRIBED IN § 9–4119(A) OF 24
THE STATE GOVERNMENT ARTICLE; AND 25
(4) LOCATED IN A HIGH –NEED OR ECONOMICALLY DISTRESSED 26
GEOGRAPHIC AREA OF THE STATE AS DETERMINED BY THE CORPORATION. 27
10–4E–05. 28
SENATE BILL 763 5
THE CORPORATION MAY ADOPT REGULATIONS TO IMPLE MENT THIS 1
SUBTITLE. 2
Article – State Finance and Procurement 3
6–226. 4
(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 5
(ii) Notwithstanding any other provision of law, and unless 6
inconsistent with a federal law, grant agreement, or other federal requirement or with the 7
terms of a gift or settlement agreement, net interest on all State money allocated by the 8
State Treasurer under this section to special funds or accounts, and otherwise entitled to 9
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 10
Fund of the State. 11
(iii) The provisions of subparagraph (ii) of this paragraph do not 12
apply to the following funds: 13
212. the Department of Social and Economic Mobility Special 14
Fund; [and] 15
213. the Population Health Improvement Fund; AND 16
214. THE MARYLAND GROWTH INITIATIVE FUND. 17
Article – State Government 18
9–4119. 19
(a) This section applies to the following minority business enterprises: 20
(1) a publicly owned business if 1 or more minority persons own at least 21
51% of the stock of the business; or 22
(2) any other business if 1 or more minority persons own at least 50% of 23
the business. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2026. 26