(2) “Private equity” means an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange.

(3) “Venture capital” means an investment of capital to a business at any stage of its development before the business makes a public offering of stock.

(b) For purposes of this section, an investment in the State shall include an investment in an entity or vehicle that:

(1) is domiciled in the State;

(2) operates in the State; or

(3) is reasonably expected to invest in entities that are in the State.

(c) It is the intent of the General Assembly that State contributions in excess of statutory requirements be invested in the State with a goal to increase the risk capital available in the State, if the investments are consistent with, and do not compromise or conflict with, the fiduciary duties of the Board of Trustees to the participants of the several systems.

(d) (1) The Board of Trustees may enter into an agreement with the Maryland Technology Development Corporation or another entity to make and manage investments on behalf of the Board of Trustees in private equity and venture capital in the State with the amount of money appropriated to the system, the State Retirement Agency, or the accumulation funds of the several systems that:

(i) for fiscal year 2017, is in addition to:

1. the amounts appropriated for the State and local employer contributions and the supplemental contribution required under §§ 21-308, 21-309, 21-309.1, and 21-310 of this title;

2. the amount appropriated under § 7-311(j)(1)(i)1 of the State Finance and Procurement Article; and

3. any other amounts required by any other provisions of law to be appropriated to the system, the State Retirement Agency, or the accumulation funds of the several systems; and

(ii) for fiscal years 2019 through 2022, is appropriated under § 21-308(a)(4) of this title.

(2) If the Board of Trustees does not enter into an agreement with the Maryland Technology Development Corporation or another entity in accordance with paragraph (1) of this subsection, the Board of Trustees shall develop a process that authorizes the Maryland Technology Development Corporation or another entity to provide recommendations regarding investments in private equity and venture capital in the State with respect to the amount described under paragraph (1) of this subsection.

(3) The investments or recommendations made in accordance with this section shall include a goal of investments or recommendations for the investment of 50% of the funds in commercialization of technology sponsored or created by a university in the State.

(4) An entity providing services to the Board of Trustees in accordance with paragraph (1) or (2) of this subsection shall be subject to the standards of care under § 21-203 of this title and the prohibited transactions under § 21-205 of this title, with respect to the services provided.

(e) All profits of and return of principal from investments made under this section shall accrue to the accumulation funds of the several systems.

(f) (1) On or before December 1 each year, the Board of Trustees shall submit a report to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the Joint Committee on Pensions, in accordance with § 2-1257 of the State Government Article, and subject to § 4-335 of the General Provisions Article, that includes a detailed description of:

(i) the investments, if any, made under this section;

(ii) the recommendations, if any, made under this section;

(iii) the actions, if any, taken by the Board of Trustees on the recommendations made under this section;

(iv) the investment performance of any investments made under this section;

(v) to the extent possible, an accounting of the fees and expenses incurred under this section; and

(vi) to the extent possible, the ratio of funds invested in projects under this section to the total percentage of venture capital funds raised in the State by all sources.

(2) On or before December 1 each year, the Maryland Technology Development Corporation or another entity with which the Board of Trustees entered into an agreement under subsection (d)(1) or (2) of this section shall submit a report to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the Joint Committee on Pensions, in accordance with § 2-1257 of the State Government Article, that, to the extent possible, provides:

(i) the economic benefit generated from investments made under this section, including:

1. the creation of new businesses;

2. the expansion of existing businesses;

3. the creation of new jobs;

4. the termination of any jobs; and

5. any increases in payroll; and

(ii) the number of businesses receiving funds from investments under this section that subsequently relocate to other states or countries.

(g) The Board of Trustees, or any other fiduciary of the several systems as defined in § 21-201(b) of this title, may not be held liable for any actions taken or decisions made in good faith for the purpose of complying with or executing the requirements of this section.

(h) The Board of Trustees shall act in good faith to carry out the requirements of this section in compliance with all applicable State and federal law, including relevant judicial decisions.

(i) Nothing in this section shall require the Board of Trustees to take action as described in this section unless the Board of Trustees determines, in good faith, that the action is consistent with the fiduciary responsibilities of the Board of Trustees as described in Subtitle 2 of this title.