Sec. 24.05.22.01. Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) “Act” means Economic Development Article, Title 6, Subtitle 6, Annotated Code of Maryland.

(2) “Affiliated foundation” means a corporation created, organized, and located in the State that meets the following conditions:

(a) With respect to public nonprofit institutions of higher education, an affiliated foundation created and operated in accordance with Education Article, §15-104, Annotated Code of Maryland; and

(b) With respect to private nonprofit institutions of higher education, a corporation created, organized, and located in the State that meets the following conditions:

(i) Is organized and operated for educational purposes in support of one or more nonprofit institutions of higher education and other affiliated organizations;

(ii) Is designated by the governing board of one or more nonprofit institutions of higher education to receive charitable contributions for educational purposes on behalf of the nonprofit institution or institutions of higher education;

(iii) Does not have any part of its earnings inuring to the benefit of any private shareholder or individual;

(iv) Is not disqualified for tax exemption under 26 U.S.C. §501(c)(3) of the Internal Revenue Code for any reason;

(v) Does not participate or intervene in, on behalf of or in opposition to, any political campaigns for public office; and

(vi) Has its fiscal affairs audited annually by an independent certified public accountant.

(3) “Authority” means the Maryland E-Nnovation Initiative Fund Authority established under Economic Development Article, §6-605, Annotated Code of Maryland.

(4) “Cash equivalent” means U.S. Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper, and other money market instruments.

(5) “Endowment proceeds” means those investment earnings accruing to a research endowment of a nonprofit institution of higher education and available for expenditure by the nonprofit institution of higher education in accordance with Economic Development Article, §6-612, Annotated Code of Maryland.

(6) “First submission date” means the June 1 before the beginning of a fiscal year in which a nonprofit institution of higher education requests a distribution of matching funds under the Program.

(7) “Fiscal year” means the fiscal year of the State.

(8) “Fund” means the Maryland E-Nnovation Initiative Fund.

(9) “Governing board” has the meaning stated in Education Article, §10-101, Annotated Code of Maryland.

(10) “Governing body” means:

(a) A governing board;

(b) The governing entity of private nonprofit institutions of higher education; or

(c) The governing entity of a regional higher education center.

(11) “Marketable securities” means securities for which market quotations are readily available on an established public securities market or exchange at the time of the donation or gift and are readily convertible into cash.

(12) Nonprofit Institution of Higher Education.

(a) “Nonprofit institution of higher education” means a public or private nonprofit institution of postsecondary education located in the State that:

(i) Receives State funds in the annual operating budget;

(ii) Limits enrollment to graduates of secondary schools; and

(iii) Awards degrees at the associate, baccalaureate, or graduate level.

(b) “Nonprofit institution of higher education” includes its affiliated foundation for purposes of receiving and depositing qualified donations and matching funds in a research endowment under Economic Development Article, Title 6, Subtitle 6, Annotated Code of Maryland.

(13) “Private nonprofit institution of higher education” has the meaning stated in Education Article, §10-101, Annotated Code of Maryland.

(14) “Program” means the Maryland E-Nnovation Initiative Program, as authorized by the Act.

(15) Qualified Donation.

(a) “Qualified donation” means any private donation, gift, irrevocable pledge, or bequest to a research endowment in accordance with Economic Development Article, §6-613, Annotated Code of Maryland.

(b) “Qualified donation” includes a donation, gift, pledge, or bequest in the form of cash and cash equivalents or marketable securities.

(16) “Regional higher education center” has the meaning stated in Education Article, §10-101, Annotated Code of Maryland.

(17) “Research endowment” means an account established at or administered by a nonprofit institution of higher education in accordance with Economic Development Article, §6-612, Annotated Code of Maryland.

(18) “Research endowment plan” means a plan adopted by a governing body and submitted to the Authority for approval, outlining how a nonprofit institution of higher education proposes to use matching funds from the program in accordance with Economic Development Article, §6-615, Annotated Code of Maryland, and Regulation .05 of this chapter.

(19) “Second submission date” means the November 1 during a fiscal year in which a nonprofit institution of higher education requests a distribution of matching funds under the Program.

(20) “Submission date” means the first submission date or the second submission date.