PHED Item 2
March 7, 2013
Planning, Housing and Economic Development
Robert H. Drummer, Senior Legislative Attorney
Jacob Sesker, Senior Legislative Analyst
Bill 3-13, Finance
Economic Development Fund - Equity
Steve Silverman, DED; Peter Bang, DED; and Michael Coveyou, Finance
Bill 3-13, Finance - Economic Development Fund - Equity Investments, sponsored by
the Council President at the request of the County Executive, was introduced on February 5. A
public hearing was held on March 5.
The Maryland General Assembly enacted Chapter 710 of the 2010 Laws of Maryland
authorizing the County to make an equity investment in a company located in, or relocating to,
the County through the Economic Development Fund. This State enabling act took effect on
October 1,2010. Bill 3-13 would implement this authority.
The Bill would:
authorize the County to make an equity investment in a company located
in, or relocating to, the County through the Economic Development Fund;
(2) provide that the proceeds of an equity investment made by the County be
used for certain purposes;
(3) limit the amount and type of ownership interest the County may acquire;
(4) require the County to post a notice of each equity investment on the
County website within a certain period of time; and
(5) generally amend the laws governing the Economic Development Fund.
Under current law, the funds in the Economic Development Fund can only be used to aid
the County's economic development through loans or grants to private employers located in or
relocating to the County. Bill 3-13 would permit the County to make an equity investment in a
company to aid the County's economic development. The Bill would limit the investment to no
more than 25% ownership of the company and would prohibit the County from managing the
company or assuming present or future liability for the company.