Bill No.
40-12
Concerning: Economic Development ­
Green [(Organization Supplement]]
Investor Incentive Program
Revised:
4/3/2013
Draft No.
~
Introduced:
December 4, 2012
Enacted:
April 16, 2013
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -.:...;:N=on:..:.;e"--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council members Berliner and Leventhal
AN
ACT to:
(1)
(2)
authorize the County to provide qualified applicants a Green [[Organization
Supplement]] Investor Incentive PaYment; and
generally amend the law governing County financial incentives for investment in
certain businesses.
By adding
Montgomery County Code
Chapter 20, Finance
Section 20-76C
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law hy original hill.
Deletedfrom existing law hy original hill.
Added hy amendment.
Deletedfrom existing law or the hill hy amendment.
Existing law unaffected hy hill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 40-12
Sec. 1. Section 20-76C is inserted as follows:
2
3
4
20-76C. Green [[Organization Supplement]] Investor Incentive Program.
W
Definitions.
In this Section, the following words have the meanings
indicated:
Green product or service
means [[the delivery of
£!
product or service in
5
6
7
8
the following areas:
9
10
11
ill
ill
ill
ill
ill
@
renewable, clean, or distributed energy;
energy efficiency products or services;
sustainable farming and food distribution;
water quality and conservation;
pollution reduction and remediation;
recycling, reuse, and resource recovery; or
biodiversity and natural resource conservation.]]
prev~nts, limit~,
12
13
14
15
16
m
a product or service that me(iSlJ.res,
mInImIZeS, or
corrects environmental damage to water, (lir, or soiL as well as problems
related to waste, eCOSV$tems. biodiversity, habitat or natural resource
depletion. All claillls related to envirompental
attribute~,
17
18
as applicable,
for a product or service, must conform to guidelines published by the
Federal Trade Commission or other appropriate entity designated by the
Director of Environmental Protection.
Investment
means the contribution of money in cash or cash equivalents
19
20
21
22
23
24
expressed in United States
dollar~,
at a risk of loss. to a qualified green
company in exchange for stock. a partnership or membership interest. or
other ownership interest in the equity of the qualified greell cOlllpany,
title to which ownership interest vests in !he
not include debt.
gualifi~d
25
26
investor but does
-2­
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BILL No. 40-12
27
28
Qualified green [[organization]] company
means any [[business,
cooperative, or non-profit]] entity of any form duly organized and
existing under the laws of any jurisdiction for the purpose of conducting
business for profit. excluding a sole proprietorship, that:
29
30
31
ill
[[provides
~
green product or service]] develops an innovative,
32
33
34
35
new to the market. technology, or a unique combination of
technologie~,
available only from that company. which adds
significant value to a green product or service or is engaged in
research or development of a such technology or technologies;
and
36
37
ill
implements
~
sustainable operation as verified
Qy
~
third party.
38
39
40
41
42
43
44
Qualified investor
means any individual or entity that invests at least
[[$5,000]] $25.000 in
~
qualified [[Montgomery County]) green
[[organization]] company and that is required to file an income tax
return in any jurisdiction.
Qualified investor
does not include:
ill
~
qualified pension plan, individual retirement account, or other
qualified retirement plan under the Employee Retirement Income
Security Act of 1974, as amended, or fiduciaries or custodians
under such plans, or similar tax-favored plans or entities under
the laws of other countries;
45
46
47
48
49
50
51
ru
an individual or entity that has an ownership interest in the
qualified green company other than from a previous investment,
which previous investment by itself or with the additional
investment does not create a 25% or greater equity holding by the
qualified investor in the qualified green company; or
-3 ­
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BILL No. 40-12
52
ill
an
individual or entity deriving any financial benefIt. including
sah;y:y or other compensatign. from the qualified green company
in which the qualified investor makes an investment.
53
54
55
56
57
58
59
Sustainable operation
means an organization validated.Qy £!: third
l2ill1Y
under one ofthe following:
ill
Montgomery County [[Certified]] Green Business Certification
Program:!. as certified .Qy the Department of Environmental
Protection;
60
61
62
63
ill
ill
ill
ill
[[Certified]] B Corp Certification from BLab;
Green America Gold Certification;
Green Seal Certification;
International Organization for Standardization ISO
[[certified]] Certification; or
14001
64
65
66
67
68
®
(Q)
any other third
Pill1Y
validation approved .Qy the Department of
Environmental Protection.
Incentive Payment
[[Q[
supplement]]:.
The Director of Finance must
~
subject to the amount of the annual appropriation in that fiscal year,
69
70
71
[[£!: Green Organization Supplement]] an incentive payment to each
[[applicant]] qualified investor who meets certain eligibility standards.
(£)
Eligibility standards.
[[An applicant]] A qualified investor, who need
not be
~
72
73
County resident, is eligible to receive the [[Supplement]]
incentive payment if the [[applicant]] qualified investor:
74
75
76
[[ill
ill]]
is
~
qualified investor; and
invests in
~
qualified green [[organization]] company that:
[[(A)]]
ill
has its headquarters and base of operations
in
the County; or
-4­
 PDF to HTML - Convert PDF files to HTML files
BILL No. 40-12
77
78
[[.@)]]
ill
has signed
~
lease for at least 5 years to open
~
[[facility]]
qualified green company with its headquarters and base of
operations in the County; and
79
80
81
Lll
has been in business for less than 10 years and employs less than
50 people and does not have its securities publicly traded otLanY
exchange.
82
83
@
Additional eligibility standards.
The County Executive,
Qy
Method
~
84
85
86
regulation, may impose other eligibility standards.
However, those
standards must not make any person ineligible to receive the
[[Supplement)) incentive payment who would be eligible under
subsection
@
87
88
89
90
ill
Ineligible investments.
[[A qualified]}
investor must not receive
[[any]]~
[~
supplement for capital] an incentive payment [[used]] for
ill
ill
the installation of any geothermal, or solar photovoltaic, or
similar system; or
any building green or energy efficiency improvement.
91
92
93
94
95
ill
Amount
gf
[[supplement]] incentive payment.
The [[Supplement paid]]
incentive payment made, subject to the amount of the annual
ill2Wpriation in that fiscal yeaL to each [[recipient is
~
~
one-time
~
96
97
98
Supplement and must equal 50% of the recipient's investment in
qualified green organization, or
lower percentage set in the annual
mu~t
operating budget resolution,
!ill
to $25,000.]] qualified investor
99
100
equal the amount of the investment made by the qualified irlVestor,
divided by the total amount of investments made by all qualified
investors in the same calendar year, multiplied by the total amount of
funds appropriated forthe green investor incentive program in that year.
101
102
- 5­
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BILL
No. 40-12
103
104
105
106
107
108
The incentive payment made to any qualified investor in any single
fiscal year must not exceed the lesser of:
ill
ill
ill
(g)
50% of the investment made by the qualified investor in that
fiscal year:
15% of the total annual and supplement appropriation for the
green investor incentive program in that fiscal year: or
$50,000.
109
110
In order to calculate the amount of the incentive payment to be made to
a qualified investor under Subsection
(0,
the Director of the Department
of Economic Development must. by January 15 of each calendar year,
compile a list of each qualified investor making an investment in a
qualified green company and the amount of that investment during the
preceding calendar year. This list must be determined using the
applications and any supporting documents qualified investors submit.
The Director may take any other action necessary to administer the
incentive payment. The.Executive may issue regulations under Method
(2) to implement this Section.
111
112
113
114
115
116
117
118
119
120
n(g)]]
!hl
Application required.
The Director
ofth~Department
of Economic
121
122
123
124
Development must require each [[eligible person]] qualified investor to
submit an application for the [[Supplement]] incentive payment and
may take any other action necessary to administer the [[Supplement]]
incentiye payment. The Executive may issue regulations under Method
125
126
127
128
ill
[[(h)]]
to specify an application process and otherwise implement this
Section.
ill
Fraudulent applications.
A person who submits
~
false or fraudulent
[[~]]
application, or withholds material information, to obtain
incentive payment under this Section has committed
-6­
~
an
129
Class A
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 40-12
130
131
132
133
134
135
136
137
138
139
violation. In addition, the person must repay the County for all amounts
improperly paid and all accrued interest and penalties that would apply
to those amounts as if they were overdue taxes. A person who violates
this Section is liable for all court costs and expenses and reasonable
attorney's fees of the County incurred in any civil action brought by the
County to recover any payment, interest, or penalty. The County may
collect any amount due, and otherwise enforce this Section, by any
other appropriate legal action.
140
141
142
143
Isiah Leggett, County Executive
Date
144
This is a correct copy ofCouncil action.
145
146
Linda M. Lauer, Clerk ofthe Council
Date
-7­
 PDF to HTML - Convert PDF files to HTML files
Bill No.
40-12
Concerning: Economic Development ­
Green [(Organization Supplement]]
Investor Incentive Program
Revised:
4/3/2013
Draft No.
~
Introduced:
December 4, 2012
Enacted:
April 16, 2013
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -.:...;:N=on:..:.;e"--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council members Berliner and Leventhal
AN
ACT to:
(1)
(2)
authorize the County to provide qualified applicants a Green [[Organization
Supplement]] Investor Incentive PaYment; and
generally amend the law governing County financial incentives for investment in
certain businesses.
By adding
Montgomery County Code
Chapter 20, Finance
Section 20-76C
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law hy original hill.
Deletedfrom existing law hy original hill.
Added hy amendment.
Deletedfrom existing law or the hill hy amendment.
Existing law unaffected hy hill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 40-12
Sec. 1. Section 20-76C is inserted as follows:
2
3
4
20-76C. Green [[Organization Supplement]] Investor Incentive Program.
W
Definitions.
In this Section, the following words have the meanings
indicated:
Green product or service
means [[the delivery of
£!
product or service in
5
6
7
8
the following areas:
9
10
11
ill
ill
ill
ill
ill
@
renewable, clean, or distributed energy;
energy efficiency products or services;
sustainable farming and food distribution;
water quality and conservation;
pollution reduction and remediation;
recycling, reuse, and resource recovery; or
biodiversity and natural resource conservation.]]
prev~nts, limit~,
12
13
14
15
16
m
a product or service that me(iSlJ.res,
mInImIZeS, or
corrects environmental damage to water, (lir, or soiL as well as problems
related to waste, eCOSV$tems. biodiversity, habitat or natural resource
depletion. All claillls related to envirompental
attribute~,
17
18
as applicable,
for a product or service, must conform to guidelines published by the
Federal Trade Commission or other appropriate entity designated by the
Director of Environmental Protection.
Investment
means the contribution of money in cash or cash equivalents
19
20
21
22
23
24
expressed in United States
dollar~,
at a risk of loss. to a qualified green
company in exchange for stock. a partnership or membership interest. or
other ownership interest in the equity of the qualified greell cOlllpany,
title to which ownership interest vests in !he
not include debt.
gualifi~d
25
26
investor but does
-2­
 PDF to HTML - Convert PDF files to HTML files
BILL No. 40-12
27
28
Qualified green [[organization]] company
means any [[business,
cooperative, or non-profit]] entity of any form duly organized and
existing under the laws of any jurisdiction for the purpose of conducting
business for profit. excluding a sole proprietorship, that:
29
30
31
ill
[[provides
~
green product or service]] develops an innovative,
32
33
34
35
new to the market. technology, or a unique combination of
technologie~,
available only from that company. which adds
significant value to a green product or service or is engaged in
research or development of a such technology or technologies;
and
36
37
ill
implements
~
sustainable operation as verified
Qy
~
third party.
38
39
40
41
42
43
44
Qualified investor
means any individual or entity that invests at least
[[$5,000]] $25.000 in
~
qualified [[Montgomery County]) green
[[organization]] company and that is required to file an income tax
return in any jurisdiction.
Qualified investor
does not include:
ill
~
qualified pension plan, individual retirement account, or other
qualified retirement plan under the Employee Retirement Income
Security Act of 1974, as amended, or fiduciaries or custodians
under such plans, or similar tax-favored plans or entities under
the laws of other countries;
45
46
47
48
49
50
51
ru
an individual or entity that has an ownership interest in the
qualified green company other than from a previous investment,
which previous investment by itself or with the additional
investment does not create a 25% or greater equity holding by the
qualified investor in the qualified green company; or
-3 ­
 PDF to HTML - Convert PDF files to HTML files
BILL No. 40-12
52
ill
an
individual or entity deriving any financial benefIt. including
sah;y:y or other compensatign. from the qualified green company
in which the qualified investor makes an investment.
53
54
55
56
57
58
59
Sustainable operation
means an organization validated.Qy £!: third
l2ill1Y
under one ofthe following:
ill
Montgomery County [[Certified]] Green Business Certification
Program:!. as certified .Qy the Department of Environmental
Protection;
60
61
62
63
ill
ill
ill
ill
[[Certified]] B Corp Certification from BLab;
Green America Gold Certification;
Green Seal Certification;
International Organization for Standardization ISO
[[certified]] Certification; or
14001
64
65
66
67
68
®
(Q)
any other third
Pill1Y
validation approved .Qy the Department of
Environmental Protection.
Incentive Payment
[[Q[
supplement]]:.
The Director of Finance must
~
subject to the amount of the annual appropriation in that fiscal year,
69
70
71
[[£!: Green Organization Supplement]] an incentive payment to each
[[applicant]] qualified investor who meets certain eligibility standards.
(£)
Eligibility standards.
[[An applicant]] A qualified investor, who need
not be
~
72
73
County resident, is eligible to receive the [[Supplement]]
incentive payment if the [[applicant]] qualified investor:
74
75
76
[[ill
ill]]
is
~
qualified investor; and
invests in
~
qualified green [[organization]] company that:
[[(A)]]
ill
has its headquarters and base of operations
in
the County; or
-4­
 PDF to HTML - Convert PDF files to HTML files
BILL No. 40-12
77
78
[[.@)]]
ill
has signed
~
lease for at least 5 years to open
~
[[facility]]
qualified green company with its headquarters and base of
operations in the County; and
79
80
81
Lll
has been in business for less than 10 years and employs less than
50 people and does not have its securities publicly traded otLanY
exchange.
82
83
@
Additional eligibility standards.
The County Executive,
Qy
Method
~
84
85
86
regulation, may impose other eligibility standards.
However, those
standards must not make any person ineligible to receive the
[[Supplement)) incentive payment who would be eligible under
subsection
@
87
88
89
90
ill
Ineligible investments.
[[A qualified]}
investor must not receive
[[any]]~
[~
supplement for capital] an incentive payment [[used]] for
ill
ill
the installation of any geothermal, or solar photovoltaic, or
similar system; or
any building green or energy efficiency improvement.
91
92
93
94
95
ill
Amount
gf
[[supplement]] incentive payment.
The [[Supplement paid]]
incentive payment made, subject to the amount of the annual
ill2Wpriation in that fiscal yeaL to each [[recipient is
~
~
one-time
~
96
97
98
Supplement and must equal 50% of the recipient's investment in
qualified green organization, or
lower percentage set in the annual
mu~t
operating budget resolution,
!ill
to $25,000.]] qualified investor
99
100
equal the amount of the investment made by the qualified irlVestor,
divided by the total amount of investments made by all qualified
investors in the same calendar year, multiplied by the total amount of
funds appropriated forthe green investor incentive program in that year.
101
102
- 5­
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 40-12
103
104
105
106
107
108
The incentive payment made to any qualified investor in any single
fiscal year must not exceed the lesser of:
ill
ill
ill
(g)
50% of the investment made by the qualified investor in that
fiscal year:
15% of the total annual and supplement appropriation for the
green investor incentive program in that fiscal year: or
$50,000.
109
110
In order to calculate the amount of the incentive payment to be made to
a qualified investor under Subsection
(0,
the Director of the Department
of Economic Development must. by January 15 of each calendar year,
compile a list of each qualified investor making an investment in a
qualified green company and the amount of that investment during the
preceding calendar year. This list must be determined using the
applications and any supporting documents qualified investors submit.
The Director may take any other action necessary to administer the
incentive payment. The.Executive may issue regulations under Method
(2) to implement this Section.
111
112
113
114
115
116
117
118
119
120
n(g)]]
!hl
Application required.
The Director
ofth~Department
of Economic
121
122
123
124
Development must require each [[eligible person]] qualified investor to
submit an application for the [[Supplement]] incentive payment and
may take any other action necessary to administer the [[Supplement]]
incentiye payment. The Executive may issue regulations under Method
125
126
127
128
ill
[[(h)]]
to specify an application process and otherwise implement this
Section.
ill
Fraudulent applications.
A person who submits
~
false or fraudulent
[[~]]
application, or withholds material information, to obtain
incentive payment under this Section has committed
-6­
~
an
129
Class A
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 40-12
130
131
132
133
134
135
136
137
138
139
violation. In addition, the person must repay the County for all amounts
improperly paid and all accrued interest and penalties that would apply
to those amounts as if they were overdue taxes. A person who violates
this Section is liable for all court costs and expenses and reasonable
attorney's fees of the County incurred in any civil action brought by the
County to recover any payment, interest, or penalty. The County may
collect any amount due, and otherwise enforce this Section, by any
other appropriate legal action.
140
141
142
143
Isiah Leggett, County Executive
Date
144
This is a correct copy ofCouncil action.
145
146
Linda M. Lauer, Clerk ofthe Council
Date
-7­