Agenda Item 27
June 22, 2010
Public Hearing
MEMORANDUM
TO:
FROM:
County Council
t",Michael Faden, Senior Legislative Attorney
SUBJECT:
Public Hearing:
Bill 28-1 0, Economic Development - Business Development
Corporation - Establishment
Bill 28-10, Economic Development
Business Development Corporation ­
Establishment, sponsored by Council President Floreen, Councilmember Trachtenberg, Council
Vice President Ervin and Councilmembers Navarro, Knapp, Leventhal and Berliner, was
introduced on April 27, 2010. A Planning, Housing and Economic Development Committee
worksession is tentatively scheduled for July 12 at 2:00 p.m.
Bill 28-10 would authorize and encourage County government to support a Montgomery
Business Development Corporation and specify the members of, and the process to appoint and
confirm members of, the Corporation Board of Directors.
This packet contains
Bill 28-10
Legislative Request Report
Fiscal Impact Statement
F:ILA WIBILLSI] 028 Economic Devel.-Business DeveLCorplPublic Hearing Memo.Doc
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Bill No.
28-10
Concerning: Economic Development ­
Business Development Corporation ­
Establishment
Revised: 4-16-10
Draft No. 7
Introduced:
April 27, 2010
Expires:
October 27,2011
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
--=-:.N~on~e::....__,___---
Ch, _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President Floreen, Councilmember Trachtenberg, Council Vice President Ervin and
Councilmembers Navarro and Knapp
AN ACT
to:
(1)
(2)
(3)
(4)
authorize and encourage County government to support a Montgomery Business
Development Corporation;
specifY the members of, and the process to appoint and confirm members of, the
Corporation Board of Directors;
define the nature and powers ofthe Corporation; and
generally amend County laws relating to economic development.
By adding
Montgomery County Code
Chapter 30B, Montgomery Business Development Corporation
Boldface
Underlining
[Single boldface brackets]
[Louble underlining
[[Double boldface bracketsD
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffocted by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No.
28-10
1
Sec. 1.
Chapter 30B, Montgomery Business Development Corporation, is
added as follows:
Chapter 30B, [Reserved] Montgomery Business Development Corporation.
30B-I.
Policy objectives; Corporation activities.
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Recognizing that
~
ill
the future success of Montgomery County related to
welfare~
education, infrastructure, public safety, public
on
vibrant and growing economy,
and quality of life is built
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ill
successful businesses are the key to
creating this economy, and
ill
government must create
~
legislative and regulatory
environment which encourages business success, the County Government supports
the formation of
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Montgomery Business Development Corporation.
The mission of the Montgomery Business Development Corporation is to
develop the vision for the County's economic future and to recommend and
advocate for legislative and regulatory changes that move the culture and
regulatory environment so that business success can create that vibrant and
growmg economy.
The Corporation must:
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Uti
(hl
establish
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vision of the economic future of the County founded on
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sound financial and economic condition and policies;
develop and articulate strategies designed to achieve that VISIOn,
advocate for legislative and regulatory changes necessary to
accomplish that vision, set measurements, and regularly report on the
County's success in meeting its objectives and goals;
(£1
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provide leadership on economic issues at both the County and State
levels;
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@
engage business leaders and other key stakeholders
in
developing and
implementing economic development strategies;
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Economic Oevel.-Business Devel.Corp\10xx BilI7.0oc
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BILL
No. 28-10
27
is:)
maintain close liaison with government agencIes and elected
representatives at both the County and State levels to achieve the
goals of the Corporation; and
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30B-2.
In
undertake any other activities deemed
Qy
the Board of Directors to
support the mission of the Corporation.
Definition.
this
Chapter
"Corporation"
means
the
Montgomery
Business
Development Corporation.
30B-3.
Board of Directors.
The Board of Directors of the Corporation must have no more than
II
members In addition, the Director of the Department of Economic
Development, the Superintendent of the County Public Schools or
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Deputy Superintendent assigned
Qy
the Superintendent, and the chair
of the County Planning Board or the Planning Director assigned
Qy
the chair, serve as ex-officio non-voting members.
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Each voting member must be either
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resident of the County
Q!
employed in the senior management of
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major company which has
significant presence in the County.
§:
The County Executive must
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appoint the remaining members, subject to confirmation
Qy
the
County Council, as follows:
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one volunteer officer of
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Chamber of Commerce in the County
who is recommended
Qy
the Chambers of Commerce;
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one owner of
§:
small business in the County;
one owner or officer of the senior management of
§:
medium­
sized business located in the County; and
!ill
to
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officers from the senior management of major
companies which have
§:
significant presence in the County.
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BILL
No.
28-10
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(£l
The Board must recommend one or more persons to the Executive to
fill any vacancy on the Board. The Executive may reject any person
recommended to serve on the Board and in that case must request
additional recommendations from the Board.
Of the members initially appointed to the Board,
.1
must be appointed
to I-year terms,
.1
must be appointed to 2-year terms, and
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must be
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appointed to 3-year terms. Thereafter each voting member serves
S!
year term. At the end of
S!
term,
£!
member continues to serve until
£!
successor is confirmed. A member who is appointed to complete an
unexpired term serves only for the rest of that term or until
£!
successor is confirmed.
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The Executive may reappoint
£!
member for one additional term who
is recommended
.!2y
the Board to serve an additional term, but
£!
member must not serve more than
.2
consecutive full terms.
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(g)
The Executive may remove
£!
member for malfeasance, misfeasance,
or nonfeasance, or another reason specified in the Corporation bylaws.
The Board must periodically select
£!
chair and vice-chair, and may
select from among its members any other officer to perform duties it
finds necessary.
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A member must not be paid for service on the Board but may be
reimbursed for necessary travel expenses.
A member is not subject to Chapter I9A because of serving on the
Board.
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30B-4.
The Board must direct the program, management, and finances of the
Corporation.
Status; incorporation; bylaws.
The Corporation is
£!
quasi-public corporation organized under the
laws of Maryland.
It
is not an instrumentality of County government.
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BILL NO.
28-10
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It
may exercise all powers and is subject to all requirements which
apply to non-stock corporations under the Corporations and
Associations Article of the Maryland Code.
{hl
The Executive, or any person designated
.by
the Executive, must
execute and file Corporation articles of incorporation, approved
.by
resolution
.by
the Council, for recording' with the State Department of
Assessments and Taxation. When the articles of incorporation are
accepted for recording
.by
the Department of Assessments and
Taxation, the Corporation becomes
properly created.
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body corporate, lawfully and
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The Council may amend the articles of incorporation
.by
adopting
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resolution submitted
.by
the Board of Directors and approved
.by
the
Executive or, if the resolution is disapproved
.by
the Executive,
readopting
it
.by
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vote of
§
Councilmembers. Any amendment must
be filed and recorded with the State Department of Assessments and
Taxation.
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The Board must adopt bylaws for the Corporation, subject to approval
.by
the Council.
Those bylaws must include provisions regulating
conflicts of interest
.by
Board members and
.by
Corporation staff, if
any. The public must be given at least
.Q
days to comment on the
proposed by-laws, or any amendment to the bylaws, before the
Council approves them.
30B-5.
Work program.
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{hl
The Corporation must adopt
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work program each year to advance the
policy objectives and perform the activities listed in Section 30B-I.
In its work program, the Corporation should complement the strategic
economic development activities of the Department of Economic
Development.
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Oxx
Bill 7.Doc
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BILL
No. 28-10
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(£)
The Corporation's work program may include
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plan for sponsorship
of private investment, marketing, and advocacy initiatives.
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The Board must meet with the Executive and Council at least semi­
annually, and must advise the Executive and Council on economic
development and related matters.
30B-6.
Staff; support from County Government.
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The County Government must provide administrative and financial
support for the Corporation, including contracts, grants, or services in
kind, subject to appropriation.
(Q)
The Office of Management and Budget, the Department of Finance
and other departments of County government and County-funded
agencies, if requested, must provide relevant economic data to the
Corporation.
The research division of the Planning Board must
provide research support to the Corporation.
(£)
The Corporation should review and comment on data furnished under
subsection
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The Corporation may also raise private funds and may accept services
from any source consistent with its purposes.
30B-7.
Report.
The Board of Directors must report annually on the activities and finances of
the Corporation to the Executive and Council.
Approved:
132
Nancy Floreen, President, COWlty COWlcil
Date
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LEGISLATIVE REQUEST REPORT
Bill 28-10
Economic Development
-
Business Development Corporation
-
Establishment
DESCRIPTION:
Authorize and encourage County government to support a
Montgomery Business Development Corporation.
Specify the
membership of and process to select the Corporation's Board of
Directors.
The County's economic development efforts would benefit from
support and advice from a high-level private business organization
To advance the economic development and prosperity of the County
County Executive, Department of Economic Development
To be requested.
To be requested.
To be requested.
To be researched.
Michael Faden, Senior Legislative Attorney, 240-777-7905
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable
F:\LAW\BILLS\\ 028 Economic DeveL-Business DeveLCorp\Legislative Request Report.Doc
f:\law\bills\1028 economic devel.-business devel.corp\legislative request
r<
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NAN
w,
C,.c..
Se.f
M~
OFFICE OF MANAGEMENT AND BUDGET
Isiah Leggett
County Executive
Josep4
F.
Beach
,
,~1
L.L.
Jr.
Director
-::::::1
MEMORANDUM
May 10,2010
TO:
FROM:
Nancy Floreen, President, Co
Joseph F. Beach, DirectOl\,":Ultnc&OfManagement and Budget
evelopment - Business. Development Corporation ­
SUBJECT: Bill 28-10, Economic
Establishment
The purpose of this memorandum is to transmit a fiscal impact statement to the
Council on the subject legislation.
LEGISLATION SUMMARY
This legislation allows the County to further its economic mission through the
formation of a Montgomery Business Development Corporation (MBDC). The legislation
authorizes and requires the County government to support a MBDC and specify the members of,
and the process to appoint and confirm members of, the Corporation Board of Directors.
FISCAL AND ECONOMIC SUMMARY
This legislation requires the County Government to provide administrative and
financial support for the MBDC and the assumption is that the Department of Economic
Development (DED) will be the administering agency responsible for recommendations set forth
by the County Executive and County Council. .The proposed legislation contains specific
provisions on reimbursing the costs of travel to the Board Members. Travel expenses to other
regions to either study, evaluate, and monitor the economic development strategies and outcomes
of other regions is difficult to gauge at this time but DED anticipates it to be minimaL
Based on DED's experience with supporting similarly chartered entities such as the
Workforce Investment Board, the Bioscience Task Force, the Green Economy Task Force, DED
estimates the staff support requirement to be intensive. DED anticipates that at least a.5 work
year will be needed assuming the allocation ofan existing mid-level professional staff to support
the MBDC.
.
DED assumes they are to absorb these costs and a breakdown of projected direct
and indirect costs is provided.
------------------------------------
101 Monroe Street, 14th Floor·
Office of the Director
Rockville, Maryland 20850 • 240-777-2800
www.montgomerycountymd.gov
------------------------------------
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Nancy Floreen
May 10,2010
Page 2
Projected Direct Costs:
• Non-Local Travel- Members may choose to participate in conferences and trade shows,
or to visit other locations in the country. Costs per person range from $1,000-$1,500
depending upon location, number attending, and length of stay. The estimated direct
costs related to the travel reimbursement could range from $4,000 to $6,000 per fiscal.
year.
• Local Travel- Local travel expenses covers the cost of mileage and parking
reimbursement requests for participating members. DED estimates that each member
will requestreimbursement for at least 100 miles of local travel per year at the current
mileage rate of $.
5
O/mile. Total projected cost for travel and parking for the fourteen
members is approximately $1,000.00.
• Printing costs - The copies and supplies needed for committee meetings as well as
potential for copies of a report that may be generated could range from $300 to $1,000.
Projected Indirect Costs:
• The predominant cost associated with the County's participation in the MBDC is the time
of the Director of the Department of Economic Development, but also assignment of
duties to a DED Business Development Specialist. Based on the relationship between the
mission of DED and the 11BDC, DED anticipates that at least a .5 work year will be
needed at approximately $55,000. Resppnsibilities will most likely include but not be
limited to: necessary research, monitoring ofthe budget, meeting planner, event
organizer, responsible for meeting
minu~es,
distribution of information, point of contact,
and the drafting of the by-laws.
Under the broad mission defined within the bill, the County recognizes that the
MBDC will need to establish a detailed action plan and sub-committee structure. The scope of
the plan and time required to develop the committees will likely result in the County's need to
provide direct frnancial support until the MBDC is able to raise adequate funding to support
activities. Furthennore, if and when the County accepts and implements recommendations made
by the MBDC, there will be larger financial resource requirements that will need to be
considered during the annual budget process.
,:
The following contributed to and c:oncurred with this analysis: Peter Bang,
Department of Economic Development, and Allson Dollar, Office of Management and Budget.
jfb:ad
:1
cc: Kathleen Boucher, Assistant Chief Administrative Officer
. Dee Gonzalez, Offices of the County Executive
Steve Silverman, Director, Department of Economic Development
Alison Dollar, Office of Management and Bjudget
(j)