Legislative Wrap-Up April 24, 2014 Administration/DBED Legislative - - PowerPoint PPT Presentation

2014 Session Legislative Wrap-Up

April 24, 2014

Administration/DBED Legislative Priorities

SB 570 - Income Tax Credit - Qualified Research and Development Expenses - Credit Amounts – Increases the statutory cap on the R&D Tax Credit from $8M to $9M

HB 468 - Maryland Economic Development Assistance Fund - Training and Technology Projects (Failed)

– Alters the permissible use of financial assistance from MEDAAF

1

Fiscal Year 2015 Operating Budget

FY15 Budget totals $38.9B

• DBED Preliminary Appropriation - $161.2M

reflecting a $592K reduction to budget allowance; –Increase of $3.1M from FY 2014

• Funding Highlights:
• MEDAAF $27.5M (includes $8.4M GF)
• Biotech Tax Credit $12M ($2M increase)
• MD Innovation Initiative (TEDCO) - $5M
• Stem Cell Research (TEDCO)- $10.4M
• EARN (DLLR) - $4.5M
• Cyber Tax Credit $4M ($1M increase)

2

FY 2015 Capital Budget Projects

• East Baltimore Biotechnology Park $5M
• High Performance Data Center (JHU) $15M
• National Cyber Center of Excellence (NCCoE)

$2M

• MDBio Foundation $200,000 for 2nd BioLab

3

Joint Legislative Agenda for Business and Economic Development

• SB 600/ HB 742 - Regional Institution Strategic Enterprise

Zone Program (RISE)

• SB 601/ HB 741 - Business and Economic Development -

Maryland E-Nnovation Initiative Program

• HB 739 - Maryland Estate Tax
• Private Sector Economic Development Commission

4

Joint Legislative Agenda for Business and Economic Development

RISE Zones

• An economic development and revitalization incentive

program administered by DBED that provides property tax credits, income tax credits and priority consideration for assistance from State’s economic development programs

• Intent is to leverage institutional assets – regional higher ed

centers, higher ed institutions or nonprofit organizations affiliated with a federal agency - as anchors to revitalization and business investment

• “Business Concierge” to assist businesses with navigating

permitting/licensing requirements and assist with accessing DBED, DHCD, DLLR, MDOT and TEDCO programs

5

Joint Legislative Agenda for Business and Economic Development

E-Nnovation

• Establishes the MD E-Nnovation Initiative Program; the MD E-

Nnovation Initiative Fund Authority and the MD E-Nnovation Initiative Fund in DBED

• FY16-FY21 distributions to fund must equal $8.5M annually
• Requires private sector matching donations
• Fund will be used to finance research endowments at

nonprofit institutions of higher education in scientific/research fields

• 7 member authority will provide advice on program admin.

6

Joint Legislative Agenda for Business and Economic Development

Estate Tax Recouples the Maryland Estate Tax to the federal level Incrementally moves the threshold at which estates are taxed from $1M to $5M

7

Joint Legislative Agenda for Business and Economic Development

Private Sector Commission on Economic Development

• 20-member Commission chaired by Norman Augustine,

former President of Lockheed Martin

• Study the State’s economic development platform, including

the existing structure and connectivity of DBED, MEDCO and TEDCO and make recommendations on:

– Agency structure – Strengths and weaknesses of incentive and investment programs – State’s regulatory structure – Working relationships with local econ dev agencies, higher ed institutions, incubators, accelerators and other State econ dev agencies

• Report due to General Assembly December 2014

8

Business Competitiveness

Workforce Skills Training

• SB 876/HB 811 – Education – Summer Career

Academy Pilot Program

– Establishes a summer career program in manufacturing for High School students who are struggling academically

Technology Internships

• HB 1317 – Higher Education Maryland Technology

Internship Program

– Establishes an Internship Program to connect college and university students, with small innovative businesses in the technology sector

9

Small Business/Regulatory

SB 711/ HB 189 – Maryland Occupational Safety and Health Act – Chemical Information List – Submission, Maintenance, and Accessibility

– Repeals the requirement that an employer submit a chemical information list to MDE

HB 430 - Commercial Law - Patent Infringement - Assertions Made in Bad Faith

– Prohibits a person from making an assertion of patent infringement in bad faith, with specified exceptions

10

Catalyzing Innovation and Growth

Judy Britz, Ph.D., Executive Director

Governor O’Malley committed to

$1.3 Billion Investment/10 Years BioMaryland 2020

Life Sciences Industry

BioManufacturing Agriculture/Food Bioinformatics Genomics Therapeutics Proteomics Diagnostics BioDefense Environment Devices

 Baltimore’s deepwater port  Rail: AmTrak corridor  Air: BWI, Washington-Dulles &

Reagan International

UNSURPASSED BUSINESS ACCESS:

100 mi. 200 mi. 400 mi. 300 mi. 500 mi. 600 mi.

Same day or overnight access to 1/3 of U.S. industry, markets, and population Just two hour access to 80% of the U.S. pharmaceutical industry and more than 2,000 biotechnology companies

CONNECTED GLOBALLY and REGIONALLY

 Road: Multi interstate

95

JCVI USAMRIID USAMRMC NIBC, NBACC, NCI UMCP VMRCVM ECBC UMB-SOM, IHV GTU GWU USUHS WRAIR JHU FDA CVM USDA

NIH

MDA MD DBED UMD NIST BARC FDA CFSAN UMBC UMCES UMD- ACES

FDA

JHU APL

Maryland’s Unique Assets

• National Institutes of Health (NIH)
• Food and Drug Administration (FDA)
• Center for Medicare and Medicaid Services (CMS)
• Center for Excellence in Regulatory Science

(CERSI)

• Food Safety and Inspection Service (FSIS)
• Federal Labs: Biodefense and Human Health
• Johns Hopkins University
• University of Maryland System

• 500 BioCompanies
• Focus: 50% Drug Development
• 25% Medical Devices/Diagnostics
• 25% CROs/Research Tools
• 34,000 Employees
• Average Salary: $91,100
• $10 Billion in Revenues

• Increase Access to Capital
• Connect Entrepreneurs with Resources
• Grow jobs in the BIO industry
• Assist Translation Of Research to Products
• Other
• Provide Business Plan Feedback
• Identify Partners, Collaborators and Clients
• Match Training and Workforce

Universities Companies

MD STEM Cell Research Fund MD Innovation Initiative (MII)

Phase II Phase III Phase I

Basic Research Translational Research Product Development

Technology Validation Program Patent Assistance Program

• Tech. Commercialization Fund

Angel Affinity Funds Maryland Industrial Partnerships (MIPS) Translational Research Award Biotechnology Commercialization Award Biotechnology Tax Credit MD Venture Fund Cybersecurity Tax Credit Research and Development Tax Credit

TEDCO USM BMC DBED KEY:

Cumulative Investment

• BioMaryland Award Programs: $7M
• Maryland Innovation Initiative: 10.8M
• Biotechnology Tax Credits: $48M
• InvestMaryland: $84M/3yrs
• Stem Cell Funding: ~$100M
• R&D Tax Credit: >$30M

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