DEPARTMENT OF BUSINESS & ECONOMIC DEVELOPMENT

FUNCTIONS

The Department's objectives are carried out by three divisions: Economic Development; Marketing and Business Development; and Tourism, Film, and the Arts. The Department also is aided by the Maryland Economic Development Commission and the Maryland Life Sciences Advisory Board. Further assistance is provided by three offices: International Investment and Trade; Military and Federal Affairs; and Policy, Planning, and Research.

World Trade Center Baltimore, 401 East Pratt St., Baltimore, Maryland, August 2001. Photo by Diane F. Evartt.

OFFICE OF SECRETARY

The Secretary of Business and Economic Development is chief executive officer of the Department. Appointed by the Governor with Senate advice and consent, the Secretary sets policy, promulgates rules and regulations, and determines the strategies necessary to fulfill the Department's mandate. The Secretary is responsible for the budget of the Department, its boards, commissions, and offices. To administer the Department, the Secretary is assisted by the Deputy Secretary. The Deputy Secretary is appointed by the Secretary with the approval of the Governor.

The Secretary serves on the Governor's Executive Council; the Base Realignment and Closure Subcabinet; the Governor's Subcabinet for International Affairs; and the Smart Growth Subcabinet. The Secretary also chairs the Maryland Military Installation Council, and serves on the Board of Directors of the Maryland Agricultural and Resource-Based Industry Development Corporation; the Maryland Agricultural Education and Rural Development Assistance Board; the Governor's Intergovernmental Commission for Agriculture; the Maryland Aviation Commission; the Board of Directors of the Bainbridge Development Corporation; the Maryland Clean Car and Energy Policy Task Force; the Climate Change Commission; the Critical Area Commission for the Chesapeake and Atlantic Coastal Bays; the Interagency Disabilities Board; the Maryland Economic Development Assistance Authority; the Maryland Economic Development Commission; the Maryland Heritage Areas Authority; the State Highway Access Valuation Board; the Governor's Commission on Hispanic Affairs; the Governor's Interagency Council on Homelessness; the Commission to Study the Impact of Immigrants in Maryland; the Maryland Industrial Development Financing Authority; the Maryland Pandemic Influenza Coordinating Committee; the Maryland Life Sciences Advisory Board; the Maryland Advisory Commission on Manufacturing Competitiveness; the Interdepartmental Advisory Committee for Minority Affairs; Maryland Council for New Americans; the Board of Directors, PenMar Development Corporation; the P-20 Leadership Council of Maryland; the Maryland Port Commission; the Renewable Fuels Incentive Board; the Maryland Rural Broadband Coordination Board; the Rural Maryland Council; the Maryland Small Business Development Financing Authority; the Board of Directors of the Maryland Technology Development Corporation; the Tri-County Council for Southern Maryland; the Maryland Wine and Grape Promotion Council; and the Governor's Workforce Investment Board.

Reporting directly to the Secretary are Internal Audits; the Maryland Economic Development Commission; the International Advisory Council; the Maryland Life Sciences Advisory Board; and the Chief Operating Officer.

MARYLAND ECONOMIC DEVELOPMENT COMMISSION
The Maryland Economic Development Commission was formed first by the Governor and then by statute in 1995 (Executive Order 01.01.1995.04; Chapter 120, Acts of 1995). The Commission establishes economic development policy and oversees Department efforts to attract and retain businesses and jobs in Maryland. In December 1995, the Commission completed a strategic plan for economic development in the State. The plan, Strategic Directions for Increasing Maryland's Competitiveness, recommended to the Governor program and spending priorities to attract business to Maryland. A second report, Strategic Directions for Increasing Competitiveness of Maryland's Growth Industry Sectors, was submitted to the Governor in May 1997. The Commission's third strategic plan is being developed to address key issues and define growth industry sectors for the first decade of the new century.

From the private sector, the Commission raises funds to supplement economic development programs and financial incentives to business. The Commission also advises the Secretary of Business and Economic Development on regulations for financing programs and on the allocation of financial incentives.

Currently, the Commission works through five subcommittees: Advanced Technology; Business Competitiveness; E-Government and Regulatory Reform; Minority Business; and Tax Policy.

Appointed to three-year terms by the Governor, the Commission has no more than twenty-five voting members. The Secretary of Business and Economic Development is a nonvoting member. The Governor names the chair (Code Economic Development Article, secs. 2-202 through 2-207).

INTERNATIONAL ADVISORY COUNCIL
In March 2009, the Governor created the International Advisory Council.

MARYLAND LIFE SCIENCES ADVISORY BOARD
In July 2007, the Maryland Life Sciences Advisory Board was authorized (Chapter 304, Acts of 2007). The Board assists the Department in developing a comprehensive strategic plan for life sciences, encompassing biotechnology, biomedical devices and technologies, environmental sciences, food sciences, life systems technology, and pharmaceuticals. The Board promotes life sciences research, development, commercialization, and manufacturing in Maryland. Also, it encourages coordination and collaboration among life sciences organizations, as well as higher education research institutions. To attract private sector investment and job creation, the Board will coordinate State and federal resources for life sciences, and develop strategies to support federal life sciences facilities located in Maryland. Further, the Board is to recommend ways to address critical needs for life sciences, such as access to venture capital and capital construction funding.

Of the Board's fifteen members, thirteen are appointed by the Governor, who also designates the chair. One member is chosen by the Maryland Technology Development Corporation, and the Secretary of Business and Economic Development serves ex officio (Code Economic Development Article, secs. 3-201 through 3-205).

MARYLAND BIOTECHNOLOGY CENTER
World Trade Center Baltimore, Suite 700, 401 East Pratt St., Baltimore, MD 21202

As part of the Maryland BIO 2020 Initiative, the Maryland Biotechnology Center opened in January 2009. The Center consolidates and coordinates existing initiatives in State government, the University System of Maryland, and the private sector to better support and expand biotechnology innovation and enterprises in Maryland. The Maryland Life Sciences Advisory Board guides Center activities.

OFFICE OF INTERNATIONAL INVESTMENT & TRADE
World Trade Center Baltimore, 7th floor, 401 East Pratt St., Baltimore, MD 21202

In 1988, the Office of International Investment and Trade was formed by the Department as the Office of International Business Development. Reorganized as the Office of Developing Markets in 1992, and as International Trade Development in 1995, it became the Trade Development Program in 1997 and the Trade Development Group in 1999. In December 2001, it restructured as the Office of International Trade, and in 2003 became International Business. Formerly under the Division of Business Development, it joined Technology Strategy and Business Development in December 2003. As International Operations, it reported to the Deputy Secretary until July 2007, when it transferred to Business Development as the Office of International Trade and Investment. In May 2008, the Office moved back under the Deputy Secretary as the Division of International Trade and Investment, and in September 2008, was placed under the Secretary. In March 2009, it reformed under its present name.

The Office of International Investment and Trade assists Maryland firms in exporting their products and services to international markets. It also helps these businesses effectively initiate or expand their overseas marketing (Code Economic Development Article, secs. 3-301 through 3-309). To attract foreign businesses to Maryland, the Office maintains ties to trade representatives with offices in twelve countries: Brazil, Canada, China, France, India, Israel, Japan, Korea, Montenegro, South Africa, Sweden, and Taiwan.

MARYLAND INTERNATIONAL BUSINESS CENTER
In March 2009, the Governor initiated the Maryland International Business Center within the Office of International Investment and Trade.

CHIEF OPERATING OFFICER

FAIR PRACTICES
Fair Practices began as the Office of Fair Practices and Procurement, which formed in September 2003 from the merger of the Office of Equal Opportunity and the Contracts and Procurement Unit. It reorganized in 2004 under its present name.

The Minority Business Enterprise Program is administered by the Office, which ensures that the Department complies with the federal Americans with Disabilities Act. Guidance to managers and employees regarding equal employment opportunity and fair practices also is provided by the Office.

OFFICE OF ADMINISTRATION & TECHNOLOGY
World Trade Center, 10th floor, 401 East Pratt St., Baltimore, MD 21202

In 1987, the Office of Administration and Technology originated as the Division of Administration. It became the Division of Administration and Information Technology in July 1999, and was renamed the Office of Administrative Services in July 2000. In December 2003, it reorganized as the Office of Support Services, and in 2005 resumed its earlier name as Office of Administrative Services. With the addition of Information and Technology Management in July 2007, it became the Division of Administration and Technology, and the Office of Administration and Technology in September 2008.

The Office develops departmental budget proposals and projections, and advises Department agencies and senior program directors on fund accounts, personnel, and purchasing. Requests for proposals and contract awards are reviewed by the Office for compliance with State purchasing regulations. The Office also provides mailroom services, monitors the use of departmental motor vehicles, and maintains liaison with building management.

Under the Office are five units: Budget and Finance; Contracts and Procurement; General Services; Human Resources; and Information and Technology Management.

INFORMATION & TECHNOLOGY MANAGEMENT
Functions of Information and Technology Management first organized in 1987 as the Division of Administration and became the Division of Administration and Information Technology in July 1999. The Division reformed in July 2000 as two offices, one of which became the Office of Information Technology. In December 2003, the Office of Information Technology reorganized as the Office of Information and Technology Management, and moved under the Office of Support Services. In 2005, it reformed as a separate office under the Deputy Secretary. In July 2007, it moved to the Division of Administration and Technology.

Information and Technology Management provides systems development, data processing, and microcomputer support and services to the Department, and manages the Department's major information technology projects. Information technology policies and standards also are developed by Information and Technology Management.

DEPUTY SECRETARY

OFFICE OF MILITARY & FEDERAL AFFAIRS
World Trade Center, 15th floor, 401 East Pratt St., Baltimore, MD 21202

Certain functions of the Office of Military and Federal Affairs started as the Office of Technology Development in January 1989. That office reformed as the Technology Commercialization Program in 1993, as the Office of Federal Response and Technology Commercialization in 1995, and as the Office of Technology Support in March 1998. It became the Office of Military Affairs and Federal Facilities in 1999. Formerly under the Division of Regional Development, as Military Affairs, it moved to Technology Strategy and Business Development in December 2003. It then transferred to the Office of Secretary in March 2004. In September 2008, it became the Office of Federal and Military Affairs, and in March 2009 reformed under its present name.

To support technology businesses, the Office of Military and Federal Affairs coordinates and leverages resources in the public, private and academic sectors. It also serves as liaison to federal government agencies located in Maryland. In addition, it provides financial support and training grants to companies affected by federal budget cuts and relocations.

The Office develops business relationships between U.S. military bases, federal laboratories, and private companies in Maryland to implement strategies for creating and retaining jobs, and redeveloping abandoned military sites. To minimize the adverse impact of closures of military bases or federal facilities, it helps businesses diversify to reduce their dependence on the federal government.

DIVISION OF ECONOMIC DEVELOPMENT

The Division of Economic Development originated in 1959 when the Department of Economic Development was created to encourage businesses to locate in Maryland and to retain and expand existing enterprises (Chapter 185, Acts of 1959). These functions later devolved on the Division of Business Development. In 1995, the Division was renamed Division of Marketing and resumed its former name as the Division of Business Development in 1999. The Division reorganized in December 2003 into three regional components: Business Development-Baltimore Region; Business Development-Capital Region; and Business Development-Rural Region. In February 2007, Business Development-Rural Region was discontinued. In September 2008, Regional Development reformed as the Division of Economic Development.

By attracting new and expanding businesses, Economic Development helps create jobs and improve the State's economy. Economic Development assists domestic and international firms in finding attractive locations in Maryland, produces market data and economic studies, and promotes international trade opportunities to Maryland firms.

FIELD OPERATIONS

BUSINESS DEVELOPMENT - BALTIMORE REGION

MARYLAND ADVISORY COMMISSION ON MANUFACTURING COMPETITIVENESS
The Maryland Advisory Commission on Manufacturing Competitiveness organized in 1994 (Chapter 482, Acts of 1994). Formerly under the Division of Regional Development, the Commission transferred to Business Development-Baltimore Region in December 2003. The Commission advises the Secretary of Business and Economic Development on ways to encourage new and expanding manufacturing enterprises in Maryland. The Commission also recommends ways to retrain and educate Maryland workers for manufacturing jobs, support research, and foster the growth and viability of manufacturing enterprises in the State.

Sixteen of the Commission's twenty-five members serve three-year terms. Those sixteen are appointed by the Secretary of Business and Economic Development with the Governor's approval; two by the Senate President; and two by the House Speaker. Five members serve ex officio, and the Secretary of Business and Economic Development names the chair (Code Economic Development Article, secs. 3-101 through 3-109).

MARYLAND INDUSTRIAL TRAINING PROGRAM
Formerly under the Office of In-State Business Services, the Maryland Industrial Training Program transferred to Business Development-Baltimore Region in December 2003. To develop new workforces and underwrite the training necessary to start and expand operations, the Maryland Industrial Training Program gives grants to businesses. It helps firms use the Maryland Job Service to determine staffing needs and recruit employees. The Program also links businesses to other State services, to resources available for productivity and training needs assessments, and to training curricula and resources for curriculum development.

BUSINESS DEVELOPMENT - CAPITAL REGION

Business Development-Capital Region was created in December 2003. This office promotes Maryland's business advantages, supports expansion of existing businesses, assists local businesses in increasing exports to world markets, and provides site selection assistance. The Capital Region includes Frederick, Montgomery and Prince George's counties.

INTERAGENCY & LOCAL GOVERNMENT COORDINATION
Origins of Interagency and Local Government Coordination trace to 1993 when the Office of Regulatory and Environmental Assistance was established within the Division of Regional Development. In July 1999, the Office of Regulatory Affairs and Analysis emerged. That office developed policy initiatives and cooperation to make Maryland's business climate "business-friendly." Also in July 1999, the Office of Community Planning was created to work with local government officials and their economic development offices on strategic planning. The functions of these two offices combined in January 2001 to form the Office of Interagency and Local Government Coordination. As Intergovernmental Coordination, it moved to the Governor's Office of Business Advocacy and Small Business Assistance in December 2003. In November 2004, it reorganized as Interagency and Local Government Coordination and transferred to Business Development-Rural Region

Interagency and Local Government Coordination coordinates and oversees Department initiatives relating to the work force, regulatory and community planning, and interagency coordination. It facilitates and promotes the efforts of Maryland businesses to develop and train employees, and meet business growth needs. To create a business-friendly environment, Intergovernmental Coordination streamlines regulatory processes. To advance business and economic growth, it builds and strengthens partnerships between the State, local governments, area businesses, and community organizations.

FINANCE TEAM

In 1987, the Finance Team began as Financing Programs under the Department of Economic and Employment Development. It reformed as the Division of Financing Programs in 1995 under the Department of Business and Economic Development. In September 2008, it restructured as the Finance Team under the Office of Economic Development.

The Finance Team directs and supervises certain State funds used as incentives or seed money for businesses in Maryland. These funds enable the State to retain businesses and attract new ones; foster economic growth; create new jobs; support commercial and industrial redevelopment; and help small, minority and high technology businesses.

The Finance Team is responsible for the Economic Development Opportunities Program (Sunny Day) Fund; the Enterprise Fund (includes Challenge Investment Program); the Maryland Competitive Advantage Financing Fund; the Maryland Economic Adjustment Fund; Maryland Economic Development Assistance Authority and Fund; the Maryland Industrial Development Financing Authority; the Maryland Small Business Development Financing Authority; and the Smart Growth Economic Development Infrastructure (One Maryland) Fund. Also under the Team is the Maryland Economic Adjustment Financing Committee.

MARYLAND VENTURE FUND
Maryland Venture Fund organized as the Investment Financing Group in 1995. Formerly under the Division of Financing Programs, the Maryland Venture Fund transferred to Technology Strategy and Business Development in December 2003, and reformed as Venture Capital under the Deputy Secretary in 2005.

This office provides for direct investment in Maryland companies through: Challenge Investment; Enterprise Investment; and Enterprise Venture-Capital Limited Partnership.

Challenge Investment Program. The Program initially may invest $50,000 as "seed money" in a technology-driven Maryland company. Matched with $50,000 from a co-investor, the Program provides a new business with $100,000 in capital. As the new business progresses and attains certain milestones, Venture Capital may authorize up to two increments of $25,000. The investment is to be repaid over a ten-year period. A Challenge recipient must keep its principal place of business in Maryland for three years. After two years, the business should have at least the potential to be considered for a direct equity investment from the Enterprise Investment Fund. Since FY1993, the Program has made 80 investments, totalling $4.35 million. Although the Program's investments are all start-up financing with higher risks, 75 percent of recipients are still in business, and ten recipients have qualified for direct equity investment from the Enterprise Investment Fund.

Enterprise Investment Fund. Created in late 1993, the Fund enables the Department to make direct equity investments (i.e., buy stock) in "early-stage" technology-driven businesses in Maryland. Investments range from $150,000 to $500,000. The decision to invest is based on the potential return, the range of economic development, and the number of jobs that will be created. Requiring a three-to-one co-investor match, the Fund has invested $11 million in 32 firms since FY1993.

Enterprise Venture Capital Limited Partnership Fund. Since FY1995, the Enterprise Investment Fund has invested in six private sector Venture Capital Limited Partnerships to encourage private investment in early stage, high technology Maryland-based firms.

TAX INCENTIVES
Tax Incentives formed within the Division of Business Development as the Tax Incentive Group and transferred to the Division of Economic Policy, Research, and Legislative Affairs as Tax Credit Incentive Programs in October 2003. It moved to Financing Programs in December 2003. In May 2004, it moved back to the Division of Economic Policy, Research, and Legislative Affairs as Tax Incentives, and was placed under the Office of Policy and Research in September 2008. Since March 2009, it has been part of the Maryland Venture Fund under the Finance Team.

State Enterprise Zone Program. Overseen by Tax Incentives, the State Enterprise Zone Program helps local governments promote economic development in their areas, or zones. To encourage businesses to locate, expand, or remain within the zone, local governments grant property tax credits. Tax credits also become incentives for businesses to create jobs. Certified new and existing businesses are eligible for local property tax credits equal to 80 percent of the additional tax assessed for improvements for five years; thereafter, smaller credits are given for an additional five years.

MARYLAND ECONOMIC ADJUSTMENT FUND
From the Maryland Economic Adjustment Fund, loans are made to companies in communities adversely affected by reductions in the budget of the U.S. Department of Defense. These loans enable Maryland companies to modernize manufacturing operations, develop commercial applications for technology, or enter and compete in new economic markets (Code Economic Development Article, secs. 5-203 through 5-209).

MARYLAND ECONOMIC ADJUSTMENT FINANCING COMMITTEE
In 1994, the Defense Adjustment Financing Committee formed to oversee the Defense Adustment Loan Fund within the Department (Chapter 689, Acts of 1994). In 1998, the Committee was renamed the Maryland Economic Adjustment Financing Committee, and the Fund became the Maryland Economic Adjustment Fund (Chapter 693, Acts of 1998). Formerly under the Office of In-State Business Services, the Committee transferred to Financing Programs (now Finance Team) in December 2003.

The Committee approves applications for defense adjustment loans and sets the terms and conditions for such loans.

Appointed by the Secretary of Business and Economic Development, the Committee consists of at least seven members who serve two-year terms (Code Economic Development Article, secs. 5-202).

MARYLAND ECONOMIC DEVELOPMENT ASSISTANCE AUTHORITY
Under Financing Programs (now Finance Team), the Maryland Economic Development Assistance Authority was authorized in 1999 (Chapter 301, Acts of 1999). After Departmental review, the Authority evaluates requests for loans from the Maryland Economic Development Assistance Fund, determines which to approve, and sets the terms and conditions for loans. From the Fund, loans may be used only to finance costs incurred for acquisition or construction of a building or real estate; acquisition, construction, or installation of machinery, equipment, furnishings, fixtures, leasehold improvements, site improvements; or working capital. Loans are intended for projects with a strong potential for expanding or retaining employment in the State.

The Authority's financing is through loans and grants (including conditional loans and grants), and investments (only in conjunction with a loan or grant). These go to specific growth industry sector businesses which locate or expand in a Priority Funding Area, or to a local jurisdiction on behalf of such a business. Priority Funding Areas include municipalities, land within the Washington, DC or Baltimore Beltways, areas already designated as enterprise zones, neighborhood revitalization areas, heritage areas, industrial land, or other areas where local government wants to encourage development and which meet other criteria.

The Authority consists of the nine members who also serve on the Maryland Industrial Development Financing Authority. Seven are appointed to three-year terms by the Governor, and two serve ex officio (Code Economic Development Article, secs. 5-305 through 5-307).

MARYLAND INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY
In 1965, the Maryland Industrial Development Financing Authority was created (Chapter 714, Acts of 1965). Through consolidation in 2000, the Maryland Industrial Development Fund replaced the Day Care Loan Facilities Loan Guarantee Fund, the Maryland Enterprise Incentive Deposit Fund, and its own Authorized Purpose Fund and Bond Insurance Fund (Chapter 305, Acts of 2000).

The Authority insures conventional loans made by financial institutions. It also may insure a loan or other obligation, or pay or insure the payment of premiums or fees for insurance, guarantees, or other credit support from a third party. The Authority insures up to the lesser of either 80 percent (or 90 percent in the case of export financing) of the obligation, or $2.5 million.

To participate in programs of the Maryland Industrial Development Financing Authority, a company must qualify generally in each of three basic categories: legal eligibility, economic impact, and creditworthiness (Federal Internal Revenue Code, sec. 146). A company also must be in a Priority Funding Area.

The Maryland Industrial Development Financing Authority has nine members. Seven are named to five-year terms by the Secretary of Business and Economic Development with the Governor's approval. The Secretary of Business and Economic Development, and either the State Treasurer or Comptroller of Maryland, as designated by the Governor, serve ex officio. The Authority appoints the Executive Director who serves as Secretary (Code Economic Development Article, secs. 5-401 through 5-420).

MARYLAND SMALL BUSINESS DEVELOPMENT FINANCING AUTHORITY
The Maryland Small Business Development Financing Authority began in 1978 (Chapter 879, Acts of 1978). To provide financial assistance to socially and economically disadvantaged persons who own small businesses within the State, the Authority administers four programs: Contract Financing; Equity Participation Investment; Guaranty Fund; and Surety Bond Fund.

Programs of the Maryland Small Business Development Financing Authority are unique. A major criterion for approval of Authority guarantees and loans is the economic impact resulting from the use of available funds. This impact is measured according to the projected number of jobs retained and created, and the projected amount of tax revenue generated from the use of these funds.

In 1992, the U.S. Congress allowed states to use public funds to establish specialized small business investment companies to serve disadvantaged business owners (P.L. 102-366). Two years later, the Maryland Small Business Development Financing Administration was authorized to organize itself into a private Maryland corporation that would be such a company (Chapter 691, Acts of 1994). Since 1994, funds under the Authority have been managed privately. The Department contracted with that privatized organization to administer programs for a period of three years and has an option to renew the contract for two years.

The Authority has nine members. Seven are appointed to five-year terms by the Governor. The Secretary of Business and Economic Development and either the State Treasurer or Comptroller, as designated by the Governor, serve ex officio (Code Economic Development Article, secs. 5-501 through 5-514).

Contract Financing Program. For eligible firms with government or public utility contracts, the Authority may guarantee a loan from a financial institution; it also may provide a direct loan for working capital and equipment. These guarantees or loans may be offered only to fulfill contracts on projects financed by federal, State or local government, or by a utility regulated by the Public Service Commission.

Equity Participation Investment Program. To encourage and assist the start up, development, and retention of Maryland-based franchises and technology businesses, owned and operated by persons socially or economically disadvantaged, this program was created in 1985. For all eligible firms, the Authority may invest up to 45 percent or $100,000 (whichever is less) of funds to start a franchise operation. The Authority also may invest up to 25 percent or $500,000 (whichever is less) of funds to acquire a profitable business. For these options, the Authority requires the initial investment to be recovered within seven years. The Authority also may invest up to $500,000 in technology-based businesses to be repaid in ten years.

Guaranty Fund Program. For all eligible firms, the Authority may guarantee and/ or pay an interest rate subsidy on a long-term loan made by a financial institution. The loan may be used for working capital, acquisition and related installation of machinery and equipment, or needed improvements to real property owned by the applicant.

Surety Bond Fund Program. Since 1985, the Surety Bond Fund has helped eligible small businesses obtain bonds they need to fulfill contracts funded primarily by government agencies or public utilities. These may be bid, performance or payment bonds. The Program either guarantees a bond up to 90% or $5,000,000 (Code Economic Development Article, secs. 5-561 through 5-575).

SMALL BUSINESS DEVELOPMENT

Small Business Development continues to facilitate communication between the business community and government, and provides a regional ombudsman service to Maryland businesses, guides them through the regulatory and permitting processes, and serves as a source of information about government for them. It works to enhance Maryland's business environment by reviewing proposed legislation and analyzing its impact on economic growth. By identifying any duplicative, excessive or cumbersome regulations at all levels of government, Small Business Development removes obstacles for business. It also advocates for, advises, and assists small and minority-owned businesses.

SMALL & MINORITY BUSINESS INITIATIVES
Under the Division of Business Development, Small and Minority Business Initiatives began as the Maryland Business Assistance Center. In 1991, Center functions reorganized as the Office of Business Assistance under the Division of Business Resources. The Office became Business Assistance in 1993 and Office of Regional Response in 1995. In April 1998, the Office of Regional Response merged with Community Infrastructure Development to form the Office of Community Assistance. In July 1999, the Office was renamed the Office of In-State Business Services, and in September 2003, the Office of Small and Minority Business Initiatives. In December 2003, the Office moved to the Governor's Office of Business Advocacy and Small Business Assistance as Small and Minority Business Initiatives.

DIVISION OF MARKETING & BUSINESS DEVELOPMENT

The Division of Marketing and Business Development began in 1991 as the Division of Business Resources. It reformed as the Division of Regional Development in 1995, reorganized as Technology Strategy and Business Development in December 2003, and emerged as Business Development in 2005. In September 2008, it restructured under its present name.

Programs and strategies that help companies and regions become even more competitive and productive are coordinated by the Division. The Division provides site selection assistance to domestic companies and those of other countries, promotes international trade opportunities for Maryland businesses, and produces market data and economic studies. Productive relationships between the Department and public and private regional economic development organizations also are formed by the Division.

The Division is responsible for Business Location Services, and Business Recruitment.

OFFICE OF POLICY, PLANNING, & RESEARCH

The Office of Policy, Planning, and Research began as Economic Development Policy in 1995. At that time, the Assistant Secretary for Economic Development Policy also served as the Governor's Ombudsman. In 1998, Economic Development Policy was renamed the Office of Economic Policy and Legislation, and in October 2003, it reorganized as the Division of Economic Policy, Research, and Legislative Affairs. In September 2008, Division legislative function transferred to the Office of Business Relations, and the Division reformed as the Office of Policy and Research. In March 2009, it reorganized as the Office of Policy, Planning, and Research.

Progressive economic development policies for the State are developed, evaluated, and advocated by the Office. The Office advises the Secretary of Business and Economic Development on how changes in State and federal regulations effect Maryland's economy, and on the effectiveness of economic development policies and programs. To the Governor, the General Assembly, and the private technology sector, Research acts as a liaison.

The Office oversees Business Information Services; Economic Research; and Policy Development and Government Affairs.

ECONOMIC RESEARCH

Economic Research provides ongoing economic data, analyses, and research to guide and support economic development initiatives. It also undertakes special research projects and publishes the monthly, Maryland's Economic Pulse.

This unit conducts in-depth research on business and economic development issues for the Department and other State government agencies. It also provides information for businesses seeking to locate or expand in Maryland. It analyzes savings realized in enterprise zones; compares tax structures in states; and provides information about State, property and income taxes, and regulatory costs.

DIVISION OF TOURISM, FILM, & THE ARTS

The Division of Tourism, Film, and the Arts began in 1948 as the Department of Information under the Hall of Records Commission. The Department became an independent agency in 1949. It reorganized in 1959 as the Tourist Development and Publicity Division within the Department of Economic Development. When the Department of Economic and Community Development formed, the Division was renamed the Tourism Division in 1970, the Division of Tourist Development by 1973, and the Tourist Development Office by 1981. By 1989, the Office reorganized as part of the Division of Tourism and Promotion. It received its present name in 1996 (Chapter 321, Acts of 1996; Code Economic Development Article, secs. 4-102).

Maryland as a destination for domestic and international travelers is promoted by the Division. The Division also supports the performing, visual and creative arts and promotes Maryland as a location for film and television production.

Under the Division are the Maryland State Arts Council, the Maryland Film Office, the Maryland Office of Sports Marketing, and the Office of Tourism Development.

MARYLAND STATE ARTS COUNCIL

In 1966, the Maryland State Arts Council originated as the Governor's Council on the Arts in Maryland, established by Executive Order. It became the Maryland State Arts Council in 1967 (Chapter 644, Acts of 1967). Formerly under the Department of Economic and Community Development, the Council joined the Department of Economic and Employment Development in 1987 (Chapter 311, Acts of 1987), and transferred to the Department of Business and Economic Development in 1995 (Chapter 120, Acts of 1995).

The Council supports the performing, visual and creative arts, including dance, drama, music, architecture, painting, sculpture, graphics, crafts, photography, design, film, television and creative writing (Code Economic Development Article, sec. 4-502). Support takes the form of grants and special programs. The Council makes grants to individual artists, arts organizations, and county arts councils. To some 250 arts organizations, it also awards operating grants which support performances and exhibitions and the work of artists throughout the State. In addition, the Council conducts programs of its own: Community Arts Development Program, Artists in Education Program, Multicultural Outreach Program, and State Folklife Program. Annually, the Council receives a grant from the National Endowment for the Arts for program support.

Seventeen members compose the Council. Thirteen are appointed to three-year terms by the Governor in consultation with the Secretary of Business and Economic Development. Two (one a senator) are appointed by the Senate President, and two (one a delegate) are appointed by the House Speaker (Code Economic Development Article, secs. 4-501 through 4-512).

MARYLAND FILM OFFICE

The Maryland Film Office was created in 1980 as the Motion Picture and Television Development Office (Chapter 5, Acts of 1980). It joined the Department of Economic and Employment Development in 1987 (Chapter 311, Acts of 1987). After being placed under the Maryland State Arts Council in 1992, the Office reformed as a separate entity in 1994 and became part of the Department of Business and Economic Development in 1995. It was renamed the Maryland Film Office in 1997 (Chapter 49, Acts of 1997; Code Economic Development Article, secs. 4-301 through 4-305).

For film and video production, the Office promotes Maryland's diverse locations. For feature films, and television programs and commercials, it works to provide facilities throughout the State. The Office helps with location scouting, permits, casting, film crew housing, catering, and equipment rental. It also prepares and distributes materials highlighting desirable film locations in the State. To bring more movie business to Maryland, the Office maintained a satellite office in Los Angeles from July 2000 to July 2007.

The Office has assisted with many Maryland films.

MARYLAND OFFICE OF SPORTS MARKETING

OFFICE OF TOURISM DEVELOPMENT

To increase tourism, the Office of Tourism Development showcases Maryland's unique recreational, historical and cultural attractions. The Office promotes Maryland as a travel destination for domestic and international tourists. It publicizes major events and advises travel agents, tour operators, writers, and the Maryland travel industry about attractions, services, and facilities.

Free publications describing Maryland tourist attractions, accommodations, historic sites, State parks, camping facilities, and recreational opportunities are updated annually. These publications include Destination Maryland (travel and outdoor guide), Maryland Celebrates Calendar of Events, and an official Maryland State highway map. The Office also works with travel and outdoor writers to provide tours of Maryland, research and information, and promotional photographs.

In addition to answering mail and phone inquiries, the Office runs a visitors' center and guide service at the State House in Annapolis, and eleven highway information centers. The Office's matching funds and cooperative marketing programs strengthen and support county and regional travel promotion councils as well.

MARYLAND TOURISM DEVELOPMENT BOARD
The Maryland Tourism Development Board was authorized in 1993 and reconstituted in 2007 (Chapter 625, Acts of 1993; Chapter 152, Acts of 2007). The Board stimulates and promotes travel and tourism in Maryland. Subject to the approval of the Secretary of Business and Economic Development and the Maryland Economic Development Commission, the Board formulates a five-year strategic plan, an annual marketing plan, and an annual operating budget.

The Board works to protect, preserve, promote, and restore the natural, historical, scenic and cultural resources of Maryland; encourages the development of new tourism resources, products, businesses, and attractions in the State; and helps tourists travel through Maryland by ensuring the provision of signs, information aids, and other services. The Board evaluates the impact of taxes, fees, licenses, and regulations on the creation of jobs and income in the tourism industry. The Maryland Tourism Development Board Fund may be used by the Board to plan, advertise, and develop tourism and travel industries in the State.

Twenty-four members compose the Board. Eleven are appointed to three-year terms by the Governor with advice of the Secretary of Business and Economic Development and Senate advice and consent. To three-year terms, the Governor also appoints three nonvoting members who are directors or executive officers of a destination marketing organization officially recognized by the Office of Tourism Development. Two senators are named by the Senate President and two delegates by the House Speaker. In addition, the Senate President and the House Speaker each appoint three members from the business community (Code Economic Development Article, secs. 4-201 through 4-214).

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