HOUSE BILL NO. HB0106

2010 10LSO-0061 STATE OF WYOMING HOUSE BILL NO. HB0106 Small business investment credit. Sponsored by: Representative(s) Pedersen, Anderson, R., ...
Author: Austen Mills
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2010

10LSO-0061

STATE OF WYOMING HOUSE BILL NO.

HB0106

Small business investment credit. Sponsored by:

Representative(s) Pedersen, Anderson, R., Berger, Brown, Buchanan, Byrd, Cohee, Edmonds, Gingery, Goggles, Harshman, Illoway, Lubnau, Millin, Quarberg, Semlek, Shepperson, Simpson, Stubson, Teeters, Wallis, Zwonitzer, Dn. and Zwonitzer, Dv. and Senator(s) Anderson, J., Bebout, Burns, Coe, Hunnicutt, Larson, Martin, Massie, Peterson, Ross and Townsend A BILL for

1

AN

ACT

relating

2

definitions; providing requirements for certification as a

3

small business investment company; providing requirements

4

for

5

certain taxes for certain investments; requiring reports;

6

amending related provisions; and providing for an effective

7

date.

participating

to

economic

investors;

development;

providing

a

providing

credit

against

8 9

Be It Enacted by the Legislature of the State of Wyoming:

10 11 12

Section

1.

W.S.

9-12-1301

through

9-12-1312

are

created to read:

13 1

HB0106

2010

STATE OF WYOMING

1

10LSO-0061

ARTICLE 13

2 3

WYOMING SMALL BUSINESS INVESTMENT CREDIT

4 5

9-12-1301.

Short title.

6 7

This

article

shall

be

known

and

may

be

cited

8

"Wyoming small business investment credit program".

as

the

9 10

9-12-1302.

Definitions.

11 12

(a)

As used in this article:

13 14

(i)

"Affiliate" means any person who, directly

15

or

indirectly,

16

fifteen percent (15%) or more of the outstanding voting

17

securities or other voting ownership interest of a Wyoming

18

small

19

licensed in this state and includes any person if fifteen

20

percent (15%) or more of the outstanding voting securities

21

or

22

directly or indirectly owned, controlled or held with power

23

to vote by a Wyoming small business investment company or

24

insurance company licensed in this state. "Affiliate" does

business

other

voting

owns,

controls

investment

ownership

or

company

interest

2

holds

or

of

power

insurance

that

to

vote

company

person

are

HB0106

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10LSO-0061

1

not include an investment by a participating investor in a

2

Wyoming small business investment company pursuant to an

3

allocation of premium tax credits under this article;

4 5

(ii) W.S.

"Allocation

9-12-1305

date"

are

means

allocated

the

date

credits

to

participating

6

under

7

investors in a Wyoming small business investment company;

8 9 10

(iii)

"Council"

means

the

Wyoming

business

council or any designated subcommittee of its members;

11 12 13

(iv)

"Designated

capital"

means

an

amount

of

money that:

14 15 16

(A)

Is invested by a participating investor

in a Wyoming small business investment company; and

17 18

(B)

Fully

funds

the

purchase

price

of

a

19

participating investor's qualified debt instrument issued

20

by a Wyoming small business investment company.

21 22

(v)

"Participating

investor"

means

any

insurer

23

licensed in this state with a tax liability under W.S.

24

26-4-103; 3

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1 2 3

(vi)

"Qualified

business"

means

a

business

which:

4 5

(A)

Is independently owned and operated;

(B)

Is

6 7

headquartered

in

Wyoming,

its

8

principal operations are located in Wyoming, at least sixty

9

percent (60%) of the employees are employed in Wyoming or

10

the business has committed in writing to move to Wyoming as

11

a condition of the investment;

12 13

(C)

Has provided evidence acceptable to the

14

council of its intent to remain in Wyoming after receipt of

15

the qualified investment;

16 17 18

(D)

Has

(E)

Is

one

hundred

(100)

employees

or

less;

19 20

not

21

financial

relationship

22

investment

company

23

business

investment

or

a

with any

franchise a

Wyoming

affiliate

company

prior

4

of

of to

and

small a a

has

no

business

Wyoming

small

Wyoming

small

HB0106

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10LSO-0061

1

business investment company's first qualified investment in

2

the business; and

3 4

(F)

Is not predominately engaged in:

5 6 7

(I)

Professional services provided by

accountants, doctors or lawyers;

8 9

(II)

Banking or lending except a bank

10

holding company as defined in W.S. 13-1-101(a)(iii) which

11

is

12

company;

authorized

to

establish

a

small

business

investment

13 14

(III)

Insurance;

15 16

(IV)

Direct gambling activities; or

17 18

(V)

19

a

Wyoming

20

affiliate.

small

Making loans to or investments in

business

investment

company

or

an

21 22

(vii)

"Qualified debt instrument" means a debt

23

instrument issued by a Wyoming small business investment

24

company which: 5

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10LSO-0061

1 2

(A)

Is issued at par value or a premium;

(B)

Has

3 4 four

(4)

years

an

original

5

least

6

repayment

7

principal amortization over four (4) years; and

schedule

from

which

the

maturity

is

date

not

of

date

issuance

faster

than

a

of

at

and

a

level

8 9

(C) as

Satisfies

"NAIC

1"

as

the

rating

determined

by

criteria the

to

10

qualify

securities

11

valuation office of the national association of insurance

12

commissioners.

13 14

(viii)

"Qualified

distribution"

means

any

15

distribution or payment made by a Wyoming small business

16

investment company in connection with:

17 18

(A) and

The

costs

forming,

small

business

20

investment company, including any fee paid for professional

21

services,

22

obligations

23

company;

of

costs

the

of

Wyoming

Wyoming

of

syndicating

the

the

expenses

19

and

organizing

and

financing small

and

insuring

business

the

investment

24 6

HB0106

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STATE OF WYOMING

1

(B)

10LSO-0061

An annual management fee not to exceed

2

three percent (3%) of designated capital on an annual basis

3

to offset the costs and expenses of managing and operating

4

a Wyoming small business investment company;

5 6

(C)

Reasonable

and

necessary

fees

in

7

accordance with industry custom for ongoing professional

8

services,

9

accounting services related to the operation of a Wyoming

10

including,

but

not

limited

to,

legal

and

small business investment company;

11 12

(D) or

state

An

increase

projected

increase

including

penalties

and

in

13

federal

14

interest, of the equity owners of a Wyoming small business

15

investment company resulting from the earnings or other tax

16

liability of a Wyoming small business investment company to

17

the extent that the increase is related to the ownership,

18

management

19

investment company; and

or

taxes,

or

operation

of

a

Wyoming

small

related

business

20 21

(E)

Payments of principal and interest to

22

holders of qualified debt instruments issued by a Wyoming

23

small business investment company.

24 7

HB0106

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STATE OF WYOMING

1

(ix)

10LSO-0061

"Qualified investment" means the investment

2

of money by a Wyoming small business investment company in

3

a qualified business for the purchase of any debt, debt

4

participation, equity or hybrid security of any nature and

5

description, including a debt instrument or security which

6

has the characteristics of debt but provides for conversion

7

into

8

options or warrants, but shall not include any purchase of

9

a guaranteed portion of a federally guaranteed loan;

equity

or

equity

participation

instruments

such

as

10 11

(x)

"State

premium

tax

liability"

means

a

12

liability incurred by an insurer under W.S. 26-4-103, or in

13

the case of a repeal or reduction of the liability imposed

14

by W.S. 26-4-103, any other tax liability imposed upon a

15

participating investor by the state;

16 17

(xi) a

"Wyoming small business investment company"

18

means

partnership,

corporation,

trust

or

limited

19

liability company organized on a for-profit basis which is

20

certified by the council pursuant to W.S. 9-12-1303.

21 22

9-12-1303.

Certification.

23

8

HB0106

2010 1

STATE OF WYOMING (a)

10LSO-0061

The Wyoming business council shall provide a form

2

for applying for certification as a Wyoming small business

3

investment company.

4 5 6

(b)

An applicant to be certified as a Wyoming small

business investment company shall:

7 8 9 10

(i)

File an application with the council and pay

a nonrefundable fee equal to the annual certification fee provided under W.S. 9-12-1308(b);

11 12

(ii)

Submit

as

part

of

the

application

an

13

audited balance sheet which contains an unqualified opinion

14

of an independent certified public accountant issued not

15

more than sixty (60) days before the application date and

16

includes

17

capitalization

18

($500,000.00) or more in the form of unencumbered cash,

19

marketable securities or other liquid assets; and

a

statement of

that

the

five

applicant

hundred

has

thousand

an

equity dollars

20 21

(iii)

Have

at

least

two

(2)

principals

or

22

persons, employed or engaged to manage the funds who each

23

have

24

experience

a

minimum in

of

the

five venture

(5)

years

capital 9

of or

money

management

private

investment HB0106

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STATE OF WYOMING

10LSO-0061

1

industry or five (5) years of experience as an officer in a

2

commercial bank and acceptable business qualifications as

3

determined by the council in consultation with the Wyoming

4

state banking commissioner.

5 6

(c)

The

council

may

certify

a

partnership,

7

corporation, trust or limited liability company which is

8

organized on a for-profit basis and submits an application

9

to be designated as a Wyoming small business investment

10

company if:

11 12 13

(i)

The applicant is located, headquartered and

licensed or registered to conduct business in Wyoming;

14 15 16

(ii)

The applicant has as its primary business

the activity of investing cash in qualified businesses;

17 18

(iii)

After

a

review

of

the

organizational

19

documents and the business history of each applicant the

20

council

21

directors, general partners, trustees, managers or members

22

of the applicant are acquainted with the requirements of

23

this article; and

determines

that

the

officers

and

the

board

of

24 10

HB0106

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STATE OF WYOMING

1

(iv)

The

applicant

10LSO-0061

has

complied

with

the

2

requirements set forth in subsection (b) of this section

3

for

4

otherwise

5

article.

a

Wyoming

small

qualified

business pursuant

investment to

the

company

provisions

and of

is

this

6 7

(d)

Not

more

than

forty-five

(45)

days

after

the

8

receipt of an application under this section, the council

9

shall issue a certification as a Wyoming small business

10

investment company or refuse to issue the certification and

11

provide to the applicant the grounds for the refusal and

12

any

13

certification.

information

that

may

allow

the

applicant

to

obtain

14 15

(e)

The

council

shall

begin

accepting

applications

16

for certification as a Wyoming small business investment

17

company not later than January 1, 2011.

18 19

(f)

The

council

may

contract

with

an

independent

20

third party to review, investigate and certify that the

21

applications

22

9-12-1307(j) and 9-12-1310(c) comply with the provisions of

23

this article.

under

this

section

and

requests

under

W.S.

24 11

HB0106

2010 1

STATE OF WYOMING 9-12-1304.

10LSO-0061

Requirements.

2 3 4

(a)

An insurance company or affiliate of an insurance

company or insurer shall not, directly or indirectly:

5 6

(i)

Own,

whether

through

rights,

options,

7

convertible interest, or otherwise, fifteen percent (15%)

8

or more of the voting securities or other voting ownership

9

interest of a Wyoming small business investment company;

10 11 12

(ii)

Manage a Wyoming small business investment

company; or

13 14 15

(iii)

Control the direction of investments for a

Wyoming small business investment company.

16 17

(b)

A Wyoming small business investment company may

18

obtain

one

(1)

19

insurance policies or other payment undertakings for the

20

benefit

of

21

except

that

22

participating

23

investment

24

participating

its

or

more

guaranties,

participating

in

no

case

investor

company,

of

investors shall

the

including

investor,

be

indemnities,

more

Wyoming any

entitled 12

from

any

than small

affiliates to

bonds,

entity, one

(1)

business of

provide

the such HB0106

2010

STATE OF WYOMING

10LSO-0061

1

guaranties, indemnities, bonds, insurance policies or other

2

payment

3

investors of the Wyoming small business investment company

4

and its affiliates.

undertakings

in

favor

of

the

participating

5 6

(c)

This section shall not be construed to preclude a

7

participating investor, insurance company or other party

8

from exercising its legal rights and remedies including,

9

without limitation:

10 11

(i)

Interim

management

of

a

Wyoming

small

12

business investment company in the event that a Wyoming

13

small

14

statutory

15

such

16

party;

business

investment

obligations

participating

or

company its

investor,

is

in

contractual insurance

default

of

its

obligations

company

or

to

other

17 18

(ii)

19

investment

20

section; or

Monitoring

company

to

a

ensure

Wyoming its

small

compliance

business with

this

21 22 23

(iii)

Disallowing any investments that have not

been approved by the council pursuant to this article.

24 13

HB0106

2010 1

STATE OF WYOMING 9-12-1305.

10LSO-0061

Wyoming small business investment credit.

2 3

(a)

A participating investor under this article shall

4

earn a credit against any state premium tax liability as

5

provided in this section up to one hundred percent (100%)

6

of the participating investor's investment of designated

7

capital in a Wyoming small business investment company.

8 9

(b)

A participating investor may claim in the year

10

immediately following a credit under this section for tax

11

years 2013, 2014, 2015, 2016, 2017, 2018 and 2019 in an

12

amount equal to fourteen and two thousand eight hundred

13

fifty-seven

14

participating investor's investment of designated capital.

ten-thousandths

percent

(14.2857%)

of

the

15 16

(c)

The credit for any tax year shall not exceed the

17

participating investor's state premium tax liability for

18

that tax year.

19

under this section for any tax year exceeds the liability

20

for

21

forward

22

premium tax credits provided by W.S. 26-19-312, 26-42-111

23

and

24

pension

tax

under to

If the amount of the credit determined

this

future

26-43-105, account

and

chapter, tax

years

deposits

pursuant

to

the

credit

without

to

the

W.S. 14

may

be

carried

limitation.

volunteer

The

firemen's

26-4-102(b)(ii),

shall HB0106

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STATE OF WYOMING

10LSO-0061

1

take priority over the premium tax credits provided by this

2

section and shall be calculated using the gross premium tax

3

before the credits provided by this section.

4 5

(d)

A

credit

under

this

section

may

be

used

in

6

connection with both final payments and prepayments of a

7

participating investor's state premium tax liability.

8 9

(e)

A participating investor claiming a credit under

10

this section shall not be required to pay any additional

11

tax or fee as a result of claiming a credit under this

12

article.

13 14

(f)

If the payment of state premium tax liability by

15

a participating investor would result in a credit against

16

or reduction in any other tax imposed by this state, the

17

amount of such credit or reduction shall not be affected by

18

the issuance of a credit under this section.

19 20

(g)

Final decertification of a Wyoming small business

21

investment company under W.S. 9-12-1310 shall result in the

22

disallowance

23

section.

24

be assessed as follows:

and

the

recapture

of

a

credit

under

this

The amount to be disallowed and recaptured shall

15

HB0106

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STATE OF WYOMING

10LSO-0061

1 2

(i)

If

decertification

of

a

Wyoming

small

3

business investment company is within four (4) years of its

4

allocation date and prior to meeting the requirements of

5

W.S.

6

disallowed.

7

tax shall be immediately due and payable and the collecting

8

authority is authorized to collect the tax;

9-12-1310(c),

all

credits

under

this

section

are

To the extent any credit had been taken, the

9 10

(ii)

If

decertification

of

a

Wyoming

small

11

business investment company occurs after the company has

12

met the requirements of W.S. 9-12-1310(c), no credits under

13

this

14

previously taken under this section shall be recaptured.

section

are

disallowed

and

no

credits

that

were

15 16

(h)

A

participating

investor

shall

not

transfer,

17

agree to transfer, sell or agree to sell a credit under

18

this section until one hundred eighty (180) days or more

19

from the date on which the participating investor invested

20

designated capital.

21

from the date of investment, a participating investor, or

22

subsequent

23

rules

24

department of insurance to facilitate such transfers.

One hundred eighty (180) days or more

transferee,

adopted

by

the

may

transfer

council

in

16

credits

based

consultation

with

upon the Any HB0106

2010

STATE OF WYOMING or

sale

of

credits

shall

10LSO-0061

1

transfer

not

affect

the

time

2

schedule for claiming a credit.

3

be repaid under this section shall remain the liability of

4

the participating investor that actually applied the credit

5

towards its tax liability.

Any tax credit required to

6 7

9-12-1306.

Aggregate

8

credits; allocation.

limitations

on

investment

tax

9 10

(a)

The aggregate amount of investment tax credits to

11

be

allocated

to

12

small

13

shall not exceed thirty million dollars ($30,000,000.00).

14

No

15

aggregate

16

allocation

17

($30,000,000.00).

business

Wyoming

all

investment

small

basis

participating

claims

companies

business

with

its

that

investors under

investment

affiliates, exceed

of

Wyoming

this

article

company, shall

thirty

file

million

on

an

credit dollars

18 19

(b)

Tax credits shall be allocated to participating

20

investors in the order that the credit allocation claims

21

are

22

allocation claims filed with the council on the same day

23

shall be treated as having been filed contemporaneously.

24

Any credit allocation claims filed with the council prior

filed

with

the

council,

provided

17

that

all

credit

HB0106

2010

STATE OF WYOMING

10LSO-0061

1

to the initial credit allocation claim filing date shall be

2

deemed to have been filed on such initial credit allocation

3

claim

4

credit allocation claim filing date to be not less than

5

ninety (90) days and not more than one hundred twenty (120)

6

days after the council begins accepting applications for

7

certification

8

company under W.S. 9-12-1303(e).

filing

date.

as

The

a

council

Wyoming

shall

small

set

the

business

initial

investment

9 10

(c)

If

two

(2)

companies

or

more

12

provisions of this act file credit allocation claims with

13

the

14

investors

15

credit

16

aggregate

17

section or the amount of credits that remain unallocated on

18

that

19

participating investors who filed on that day on a pro rata

20

basis with respect to the amounts claimed.

21

allocation for any one (1) participating investor is the

22

product obtained by multiplying a fraction, the numerator

23

of which is the amount of the credit allocation claim filed

24

on behalf of a participating investor and the denominator

on

behalf

the

same

allocation

day,

limit

the

of

of

their

day

claims

and

respective the

exceeds

investment

credits

qualified

business

investment

on

are

small

11

council

which

Wyoming

shall

18

tax

be

under

participating

aggregate the

the

lesser

credits

amount

of

of

the

under

allocated

among

this

the

The pro rata

HB0106

2010

STATE OF WYOMING

10LSO-0061

1

of which is the total of all credit allocation claims filed

2

on behalf of all participating investors on that day, by

3

the lesser of the aggregate limit of credits under this

4

section or the amount of credits that remain unallocated on

5

that day.

6 7

(d)

Not more than ten (10) business days after the

8

council

9

Wyoming small business investment company on behalf of one

10

(1) or more of its participating investors, the council

11

shall notify the Wyoming small business investment company

12

of

13

participating

14

investment company.

In the event a Wyoming small business

15

investment

does

16

designated

17

required to earn the amount of credits allocated to such

18

participating investor within ten (10) business days of the

19

Wyoming small business investment company’s receipt of a

20

notice of allocation, it shall notify the council on or

21

before the next business day and the credits allocated to

22

such participating investor of the Wyoming small business

23

investment company shall be forfeited.

24

reallocate credits forfeited under this subsection among

the

receives

amount

a

of

credit

credits

investors

company capital

allocation

of

from

allocated that

not

19

to

Wyoming

receive

each

claim

an

filed

each small

by

of

the

business

investment

participating

a

of

investor

The council shall

HB0106

2010

STATE OF WYOMING participating

investors

1

the

2

business

3

respect to the credit allocation claims filed on behalf of

4

the participating investors.

investment

of

companies

the

10LSO-0061

on

a

other pro

Wyoming

rata

small

basis

with

5 6

(e)

The council may impose a civil penalty of not

7

more

than

fifty

8

participating

9

amount of designated capital required to fund the credits to

thousand

investor

it

by

dollars

which

the

does

council

($50,000.00) not

in

invest

accordance

upon the

with

a

full

10

allocated

the

11

credit allocation claim filed on its behalf.

12

shall provide by rule, notice and opportunity for hearing

13

prior to imposing a civil penalty under this subsection.

14

In determining the amount of the penalty the council shall

15

consider the direct and indirect cost to the state as a

16

result of the investor's failure to invest the full amount

17

of designated capital.

The council

18 19

(f)

No participating investor, individually or on an

20

aggregate

basis

21

allocation claim for more than twenty-five percent (25%) of

22

the

23

under this article regardless of whether such claim is made

maximum

with

amount

of

its

affiliates,

investment

20

tax

shall

credits

file

an

authorized

HB0106

2010

STATE OF WYOMING

10LSO-0061

1

in connection with one (1) or more Wyoming small business

2

investment companies.

3 4

(g)

The council shall annually certify by January 31,

5

the

6

participating investor qualifies under this article as of

7

December 31 of the previous year.

8

be made to the insurance commissioner, and to the entity

9

otherwise authorized to collect the tax due if the credit

10

amount

of

investment

tax

credits

for

which

each

The certification shall

is allowed against another tax liability to the state.

11 12 13

9-12-1307.

Requirements

for

continuance

of

certification.

14 15

(a)

To maintain certification under this article, a

16

Wyoming

small

business

investment

17

qualified investments as follows:

company

shall

make

18 19

(i) a

Within two (2) years after the allocation

20

date,

Wyoming

21

invest

22

(25%) of its designated capital in qualified investments;

23

and

an

amount

small equal

business to

at

investment least

company

twenty-five

shall

percent

24 21

HB0106

2010

STATE OF WYOMING

1

(ii) a

10LSO-0061

Within four (4) years after the allocation

2

date,

Wyoming

small

business

investment

company

shall

3

invest an amount equal to at least fifty percent (50%) of

4

its designated capital in qualified investments.

5 6

(b)

Before making a proposed qualified investment in

7

a specific business, a Wyoming small business investment

8

company

9

determination that the proposed investment is a qualified

shall

a

from

written

notify a Wyoming small business investment company within

12

ten (10) business days from the receipt of a request of its

13

determination and an explanation thereof.

14

does

15

company of its determination within ten (10) business days,

16

the

17

investment in a qualified business.

proposed

Wyoming

investment

is

small

deemed

The

a

11

the

business.

council

investment

notify

qualified

the

10

not

in

request

council

If the council

business

to

shall

be

a

investment

qualified

18 19

(c)

Any designated capital not invested in qualified

20

investments by a Wyoming small business investment company

21

shall be held or invested in such manner as the Wyoming

22

small business investment company, in its discretion, deems

23

appropriate.

24 22

HB0106

2010 1

STATE OF WYOMING (d)

Designated returned

capital

business

investment

company

4

investments may be invested again in qualified investments

5

and

6

requirements

7

section

8

designated capital in qualified investments.

investment

for

of

originally

shall

invested

be

subsections

the

small

designated

3

being

Wyoming

of

capital

such

a

proceeds

2

after

to

and

10LSO-0061

considered

(a),

purposes

of

in

(e)

and

making

qualified

under (f)

of

the this

investments

of

9 10

(e)

If,

within

six

(6)

years

after

its

allocation

11

date, a Wyoming small business investment company has not

12

invested at least seventy percent (70%) of its designated

13

capital in qualified investments, neither the Wyoming small

14

business

15

permitted to receive management fees.

investment

company

nor

its

affiliates

shall

be

16 17

(f)

If, within eight (8) years after its allocation

18

date, a Wyoming small business investment company has not

19

invested

20

capital in qualified investments, neither the Wyoming small

21

business

22

permitted to receive management fees.

one

hundred

investment

percent

company

(100%)

nor

its

of

its

affiliates

designated

shall

be

23

23

HB0106

2010 1

STATE OF WYOMING (g)

10LSO-0061

A Wyoming small business investment company shall

2

not invest more than twenty percent (20%) of its designated

3

capital

4

specific approval of the council.

in

any

one

(1)

qualified

business

without

the

5 6

(h)

For

purposes

of

calculating

the

investment

7

percentages in this section, the cumulative amount of all

8

qualified

9

investment

10

investments company

made

from

by

the

a

Wyoming

allocation

small date

business shall

be

considered.

11 12

(j)

A Wyoming small business investment company may,

13

at any time but not more than once every two (2) years,

14

request that the council determine if the Wyoming small

15

business

16

requirements of this section.

17

subsection, the council shall, not later than sixty (60)

18

days

19

certify that the Wyoming small business investment company

20

has satisfied the requirements of this section as of the

21

date of the request or provide notice of noncompliance and

22

an explanation of the deficiencies.

23

not provide such notification within the sixty (60) day

24

period, the Wyoming small business investment company shall

investment

after

receipt

company

of

a

is

in

compliance

with

the

Upon a request under this

request

24

under

this

subsection,

If the council does

HB0106

2010

STATE OF WYOMING

10LSO-0061

1

be deemed to have met the applicable requirements of this

2

section as of the date of the request.

3 4 5

9-12-1308.

Wyoming small business investment company

reporting requirements.

6 7 8

(a)

Each

Wyoming

small

business

investment

company

shall report the following to the council:

9 10 11

(i)

As soon as practicable after the receipt of

designated capital:

12 13

(A)

The name of each participating investor

14

from which the designated capital was received, including

15

such

16

insurance commissioners (NAIC) identification number;

participating

investor's

national

association

of

17 18 19

(B)

The

amount

of

each

participating

investor's investment of designated capital; and

20 21 22

(C)

The

date

on

which

the

designated

capital was received.

23 24

(ii)

On or before January 31 of each year: 25

HB0106

2010

STATE OF WYOMING

10LSO-0061

1 2

(A)

The

investment

amount

of

company's

the

Wyoming

remaining

small

3

business

uninvested

4

designated capital at the end of the immediately preceding

5

fiscal year;

6 7

(B)

Whether

the

Wyoming

small

business

8

investment company has invested more than twenty percent

9

(20%)

10

of

its

total

designated

capital

in

any

one

(1)

business;

11 12

(C)

All

qualified

investments

that

the

13

Wyoming small business investment company has made in the

14

previous fiscal year, including the number of employees of

15

each qualified business in which it has made investments at

16

the time of such investment and as of December 1 of the

17

preceding fiscal year; and

18 19

(D)

For

any

qualified

business

where

the

20

Wyoming small business investment company no longer has an

21

investment, the Wyoming small business investment company

22

shall provide employment figures for that company as of the

23

last day before the investment was terminated.

24 26

HB0106

2010

STATE OF WYOMING

1 2

(iii)

Any

information

10LSO-0061

that

the

council

may

require by rule and regulation:

3 4

(A)

Which will help the council ascertain

5

the impact of the Wyoming small business investment company

6

program directly and indirectly on the economy of the state

7

of

8

jobs

9

qualified investments; or

Wyoming

including,

created

by

without

qualified

limitation,

businesses

the

that

number

have

of

received

10 11

(B)

Information

on

the

operations

of

the

12

Wyoming small business investment company that the council

13

requires to determine compliance with the requirements of

14

this article.

15 16

(iv)

17

fiscal

year,

18

Wyoming

small

19

include

the

20

accountant.

Within ninety (90) days of the close of its annual

audited

business

opinion

of

financial

investment an

statements

company

independent

of

which

the

shall

certified

public

21 22

(b)

The

23

certification

24

manner

business fees

provided

in

council

through W.S.

rule

shall and

33-1-201(a). 27

set

regulation A

annual in

Wyoming

the small HB0106

2010

STATE OF WYOMING

10LSO-0061

1

business investment company shall submit to the council the

2

annual, nonrefundable certification fee on or before April

3

1 of each year.

4

required

5

subsection is within six (6) months of the date a Wyoming

6

small business investment company is first certified by the

7

council under W.S. 9-12-1303.

for

The annual certification fee shall not be

the

year

if

the

payment

date

under

this

8 9

9-12-1309.

Distributions.

10 11

(a)

A Wyoming small business investment company may

12

make a qualified distribution at any time.

13

Wyoming

14

distribution

15

equity

16

investments

17

company shall equal or exceed one hundred percent (100%) of

18

its designated capital.

small

business

other

holders, of

than

investment a

company

qualified

the

cumulative

the

Wyoming

In order for a make

distribution

amount

small

to

of

all

business

to

a its

qualified investment

19 20

(b)

A Wyoming small business investment company shall

21

transfer

22

general fund an amount equal to ten percent (10%) of all

23

distributions to the equity holders of the Wyoming small

24

business

to

the

state

investment

treasurer

company, 28

for

other

deposit

than

into

the

qualified HB0106

2010

STATE OF WYOMING

1

distributions

2

contributed to a Wyoming small business investment company

3

by the equity holders.

4

company shall make all contributions required under this

5

subsection concurrently with distributions to its equity

6

owners by payment to the Wyoming business council.

7

council shall upon receiving payment from the Wyoming small

8

business investment company transmit the funds to the state

9

treasurer for deposit into the general fund.

10

this

11

distributions.

and

subsection

distributions

10LSO-0061

shall

of

paid-in

capital

A Wyoming small business investment

be

construed

to

The

Nothing in

affect

qualified

12 13

(c)

If, more than ten (10) years after the allocation

14

date,

a

Wyoming

15

failed to cumulatively invest an amount equal to at least

16

one hundred percent (100%) of its designated capital in

17

qualified investments, the percentage of distributions that

18

a Wyoming small business investment company is required to

19

contribute

20

subsection (b) of this section shall be twenty-five percent

21

(25%) of all distributions to the equity holders of the

22

Wyoming

23

qualified

to

small

the

small

state

business

distributions

business

of

investment

Wyoming

investment and

general

company,

distributions

29

company

fund

other of

has

under

than

paid-in

HB0106

2010

STATE OF WYOMING

10LSO-0061

1

capital contributed to a Wyoming small business investment

2

company by the equity holders.

3 4 5

9-12-1310.

Decertification;

certification

of

an

of

compliance.

6 7

(a)

The

council

shall

conduct

annual

review

8

each Wyoming small business investment company to determine

9

if

each

Wyoming

small

business

investment

company

is

10

abiding by the requirements of this article and to ensure

11

that

12

article.

13

determinations under this article including certifications

14

requested

15

this section shall be paid by each Wyoming small business

16

investment company according to a fee schedule adopted by

17

the council sufficient to cover actual direct and indirect

18

costs of the review or certification.

no

investment The

under

has

cost

W.S.

of

been

made

the

in

annual

9-12-1307(j)

and

violation review

of

and

subsection

this other

(c)

of

19 20

(b)

Any material violation of this article, including

21

any

material

22

connection with the application process, is a basis for

23

decertification

24

company

and

misrepresentation

of

the

a

Wyoming

made

small

disallowance 30

of

to

the

business credits

council

in

investment under

W.S. HB0106

2010

STATE OF WYOMING

10LSO-0061

1

9-12-1305, provided that in all instances the council shall

2

provide

3

company of the grounds of a proposed decertification and

4

the

5

before the decertification becomes effective.

notice

to

opportunity

the

to

Wyoming

cure

any

small

business

violation

of

investment

this

article

6 7

(c)

8

request

9

invested

A Wyoming small business investment company may that

the

an

council

amount

(100%)

cumulatively its

that

the

company

equal

to

one

11

investments as provided in W.S. 9-12-1307 and has complied

12

with all other requirements provided under this article.

13

Upon a request under this subsection, the council shall

14

notify

15

later than sixty (60) days after receipt of a request under

16

this subsection:

small

business

capital

in

hundred

percent

Wyoming

designated

has

10

a

of

certify

investment

qualified

company

not

17 18 19

(i)

That

it

has

achieved

certification

has

not

the

under

this subsection; or

20 21

(ii)

That

it

met

requirements

of

22

this article, provide a reason for the determination that

23

the

company

has

been

determined

31

not

to

have

met

the

HB0106

2010

STATE OF WYOMING

10LSO-0061

1

requirements of this article and decertify the company if

2

applicable under subsection (b) of this section.

3 4

(d)

If the council certifies a Wyoming small business

5

investment company under subsection (c) of this section,

6

the company shall no longer be subject to regulation by the

7

council

8

requirements under W.S. 9-12-1308.

9

provide notification within the sixty (60) day period as

10

required in subsection (c) of this section, the Wyoming

11

small business investment company shall be deemed to be

12

certified as provided in subsection (c) of this section.

and

shall

not

be

subject

to

the

reporting

If the council does not

13 14

(e)

The council shall provide written notice of any

15

decertification

proceedings

16

insurance

17

participating investor whose tax credit may be subject to

18

recapture or forfeiture, using the address shown on the

19

last filing submitted to the council.

commissioner

and

under to

this the

section address

to of

the each

20 21

9-12-1311.

Registration requirements.

22 23

Each investment by a participating investor for which a tax

24

credit is awarded under this article shall be registered or 32

HB0106

2010

STATE OF WYOMING

10LSO-0061

1

specifically exempt from registration in accordance with

2

applicable state or federal law.

3 4

9-12-1312.

Reports to the governor and legislature.

5 6

(a)

The council shall make an annual report to the

7

governor, the joint appropriations interim committee and

8

the

9

interim committee for review and comment.

10

joint

minerals,

business

and

economic

development

The report shall

include:

11 12 13

(i)

The

number

of

Wyoming

small

business

investment companies holding designated capital;

14 15 16

(ii)

The amount of designated capital invested

in each Wyoming small business investment company;

17 18 19

(iii)

The

cumulative

amount

that

each

Wyoming

small business investment company has invested;

20 21

(iv)

22

that

the

23

investment

24

invested

The cumulative amount of follow-on capital

investments

in

company

of

have

qualified

each

Wyoming

small

created

in

terms

businesses

at

the

33

of

same

business capital time

or HB0106

2010

STATE OF WYOMING

10LSO-0061

1

subsequent to investments made by a Wyoming small business

2

investment company in such businesses by sources other than

3

Wyoming small business investment companies;

4 5 6

(v)

The total amount of investment tax credits

applied under this article for each year;

7 8 9 10

(vi)

The

performance

of

each

Wyoming

small

business investment company with regard to the requirements for continued certification;

11 12

(vii)

The

classification

of

the

companies

in

13

which each Wyoming small business investment company has

14

invested

15

company;

according

to

industrial

sector

and

size

of

created

by

16 17

(viii)

The

gross

number

of

jobs

18

investments made by each Wyoming small business investment

19

company and the number of jobs retained;

20 21 22

(ix)

The location of the companies in which each

Wyoming small business investment company has invested;

23

34

HB0106

2010

STATE OF WYOMING

1

(x)

Those

Wyoming

small

10LSO-0061 business

investment

2

companies that have been decertified, including the reasons

3

for decertification; and

4 5

(xi)

6

evaluate

7

development.

Other related information as necessary to

the

effect

of

this

article

on

economic

8 9 10

Section

2.

W.S.

9-12-102(a)(viii)

and

26-4-103

by

creating a new subsection (m) are amended to read:

11 12

9-12-102.

Definitions.

13 14

(a)

As used in this act, the following terms have the

15

following

meanings,

16

indicates otherwise:

except

where

the

context

clearly

means

W.S.

9-12-101

through

17 18 19

(viii)

"This

act"

9-12-1203 9-12-1312.

20 21 22

26-4-103.

Premium

taxes;

generally;

preemption

by

state.

23

35

HB0106

2010 1

STATE OF WYOMING (m)

10LSO-0061

The amount of tax credits for which an insurer

2

qualifies under W.S. 9-12-1301 through 9-12-1312 shall be

3

allowed as a credit against premium tax owed by the insurer

4

under this section.

5 6

Section

3.

This

act

is

effective

immediately

upon

7

completion of all acts necessary for a bill to become law

8

as

9

Constitution.

provided

by

Article

4,

Section

8

of

the

Wyoming

10 11

(END)

36

HB0106