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
2010
STATE OF WYOMING
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
HB0106
2010
STATE OF WYOMING
10LSO-0061
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
2010
STATE OF WYOMING
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
HB0106
2010
STATE OF WYOMING
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
2010
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
2010
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
2010
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
2010
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
2010
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
2010
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