Bill No.
40-12
Concerning: Economic Development ­
Green [[Organization Supplement])
Investor Incentive Program
Revised:
4/3/2013
Draft No.
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Introduced:
December 4,2012
Enacted:
April 16, 2013
Executive:
April 24, 2013
Effective:
July 24, 2013
Sunset Date: --:....:N=on.,.,e"--_ _ _ _ __
Ch.
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Laws of Mont. Co.
2013
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers 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
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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 unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No.
40-12
1
Sec.
1.
Section 20-76C is inserted as follows:
20-76C. Green [[Organization Supplement)] Investor Incentive Program.
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Definitions.
In
this Section, the following words have the meanings
indicated:
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Green product or service
means [[the delivery of
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product or service in
the following areas:
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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.]]
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a product or service that measures, prevents. limits, mInImIzes. or
corrects environmental damage towater, air. or soil.
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well as problems
related to waste, ecosystems. biodiversity, habitat or natural resource
depletion. All claims related to environmental attributes. 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.
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Investment
means the contribution of money in cash or cash equivalents
expressed in United States dol1ars, at a risk ofloss. to a qualified green
company in exchange for stock. a partnership or membership interest. or
other ownership interest in the equity of the qualified green company,
title to which ownership interest vests in the qualified investor but does
not include debt.
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BILL
No. 40-12
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Qualified green [[organization]] companv
means any [[business,
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cooperative, or non-profit]] entity of any form duly orgaIlized and
existing under the laws of any jurisdiction for the purpose of conducting
business for profit. excluding a sole proprietorship, that:
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[[provides
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green product or service]] develops an innovative,
new to the market. technology, or a unique combination of
technologies, 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
and
technologie~;
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implements
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sustainable operation as verified.by
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third party.
Qualified investor
means any individual or entity that invests at least
[[$5,000]] $25,000 in
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qualified [[Montgomery CountylJ green
[[organization]] company and that is required to file an income tax
return in any jurisdiction.
Qualified investor
does not include:
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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;
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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
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BILL
No.
40~
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an individual or entity deriving any financial benefit. including
salary or other compensation, from the qualified green company
in which the qualified investor makes an investment.
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Sustainable operation
means an organization validated
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under one ofthe following:
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Montgomery County [[Certified]] Green Business Certification
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as certified
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the Department of Environmental
Protection;
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[[Certified]] B Corp Certification from BLab;
Green America Gold Certification;
Green Seal Certification;
International Organization for
[[certified]] Certification; or
Standardization
ISO
14001
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®
(Q)
any other third pgrty validation approved
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the Department of
Environmental Protection.
Incentive Payment
[[Q(
supplement]]:.
The Director of Finance must
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subject to the amount of the annual appropriation in that fiscal year,
[[g Green Organization Supplement]] an incentive payment to each
[[applicant]] qualified investor who meets certain eligibility standards.
(£}
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Eligibility standards.
[[An applicant]] A qualified investor, who need
not be g County resident, is eligible to receive the [[Supplement]]
incentive payment if the [[applicant]] qualified investor:
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is g qualified investor; and
invests in g qualified green [[organization]] company that:
[[(A)l]
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has its headquarters and base of operations in the County; or
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BILL
No. 40-12
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[[00]
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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
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has been in business for less than 10 years and employs less than
50 people and does not have its securities publicly traded on any
exchange.
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Additional eligibility standards.
The County Executive,
by
Method
regulation, may impose other eligibility standards.
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However, those
standards must not make any person ineligible to receive the
[[Supplement]] incentive payment who would be eligible under
subsection
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Ineligible investments.
UA
qualified]]
An
investor must not receive
[!!
[[any]]~
supplement for capital] an incentive payment [[used]] for
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the installation of any geothermal, or solar photovoltaic, or
similar system; or
any building green or energy efficiency improvement.
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Amount
g[
[[supplement]] incentive pavment.
The [[Supplement paid]]
incentive payment made. subject to the amount of the annual
appropriation in that fiscal year. to each [[recipient is
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one-time
Supplement and must equal 50% of the recipient's investment in
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qualified green organization, or
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lower percentage set in the annual
operating budget resolution,
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to $25,000.]] qualified investor must
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the amount of the investment made by the qualified investor.
divided by the total amount. of investments made by all qualified
investors in the same calendar year. multiplied by the total amount of
funds anpropriated for the green investor incentive program in that year.
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BILL
No. 40-12
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The incentive payment made to any qualified investor in any single
fiscal year must not exceed the lesser...ot
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50% of the investment made by the qualified investor in that
fiscal year;
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(g)
15% of the total annual and supplement appropriation for the
green investor incentive program in that fiscal year: or
$~O,OOO.
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In order to calculate the amount of the incentive payment to be made to
a qualified investor under Subsection
(fl,
the Director of the Department
of Economic Development must. by January 15 of each caleJldar year,
compile a list of each qualified investor making an investment in a
qualified green company and
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amount of that investment during the
preceding calendar year. This list must be c:ietermined using the
applications and any supporting documents qualified investors submit.
The Director may take any other action necessary to administer the
incentive payment. The E)(ecutive may issue regulations under Method
(2) to implement this Section.
[[W11
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Application required.
The Director of the Department of Economic
Development must require each [[eligible person)] qualified iJ:,!vestor to
submit an application for the [[Supplement]] incentive payment and
may take any other action necessary to administer the [[Supplement]]
incentive payment. The Executive may issue regulations under Method
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[[(hlIJ
to specify an application process and otherwise implement this
Section.
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Fraudulent applications.
A person who submits
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false or fraudulent
application, or withholds material information, to obtain
incentive payment under this Section has committed
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Class A
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BILL
No. 40-12
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violation. In addition, the person must repay the County for all amounts
improperly paid and all accrued interest and penalties that would
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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
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the
County to recover any payment, interest, or penalty. The County may
collect any amount due, and otherwise enforce this Section,
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any
other appropriate legal action.
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Approved:
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This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
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Date
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