Md. General Assembly clears MontCo to buy biotech stocks

By Hayley Peterson
Examiner
Apr. 19, 2010

ANNAPOLIS - The Maryland General Assembly approved a bill that would allow Montgomery County to invest taxpayers dollars in biotech startups.

The measure would empower Montgomery to make stock investments in Maryland companies. State law prohibits local governments from making equity investments, which are regarded as high-risk, according to a legislative analysis of the bill. The state government is allowed to make such investments, however, and Montgomery officials wanted in on the return.

"We want to allow the county to do what the state does," said Montgomery's legislative analyst, Sheila Sprague. Sprague said the bill, sponsored by the Montgomery delegation, was drafted at the urging of County Executive Ike Leggett.

The Senate unanimously approved the bill, while the measure won approval by a 135-3 vote in the House. Gov. Martin O'Malley is expected to sign the measure. But a Montgomery County senator stopped the ball rolling when the measure went before the Senate Finance Committee during the approval process.

"I read this [bill], and I see it as saying county government can own 25 percent of a private business ... and I actually have a problem with that," said Sen. Rob Garagiola, D-Poolesville. "It seems like there could be a lot of conflicts."

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