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H0300aa.............................................by REVENUE AND TAXATION
VENTURE CAPITAL - Adds to existing law to adopt a new chapter to govern
incentives for targeted growth through allowance of a venture capital risk
tax credit; to provide that the Department of Commerce is charged with the
selection of an investor group with capacity to support raising and
investing up to $30,000,000; and to provide for the selection of the
investor group; to provide for reports and audits; and to provide for
management.
02/20 House intro - 1st rdg - to printing
02/21 Rpt prt - to Rev/Tax
03/02 Rpt out - to Gen Ord
Rpt out amen - to engros
03/05 Rpt engros - 1st rdg - to 2nd rdg as amen
03/06 2nd rdg - to 3rd rdg as amen
03/09 3rd rdg as amen - PASSED - 53-12-5
AYES -- Barraclough(Barraclough), Bedke, Bell, Bieter, Black, Boe,
Bolz, Bradford, Bruneel, Chase, Collins, Cuddy, Deal, Denney, Ellis,
Ellsworth, Eskridge, Field(13), Field(20), Gagner, Gould, Hadley,
Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones, Kellogg, Kunz,
Loertscher, Mader, Marley, Meyer, Montgomery, Mortensen, Moss,
Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali, Sellman,
Shepherd, Smylie, Stevenson, Stone, Swan(Hansen), Tilman, Trail,
Wheeler, Mr. Speaker
NAYS -- Barrett, Callister, Clark, Hammond, Kendell, Lake, Langford,
McKague, Moyle, Pearce, Schaefer, Smith
Absent and excused -- Crow, Campbell, Pischner, Wood, Young
Floor Sponsor -- Mader
Title apvd - to Senate
03/12 Senate intro - 1st rdg - to Loc Gov
03/20 Rpt out - rec d/p - to 2nd rdg
03/21 2nd rdg - to 3rd rdg
03/22 Ref'd to Fin
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 300
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INCENTIVES FOR TARGETED GROWTH THROUGH VENTURE CAPITAL RISK TAX
3 CREDIT; PROVIDING A STATEMENT OF LEGISLATIVE INTENT; AMENDING TITLE 63,
4 IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 43, TITLE 63, IDAHO CODE, TO
5 PROVIDE A SHORT TITLE, TO DEFINE TERMS, TO REQUIRE AN ANNUAL REPORT, TO
6 AUTHORIZE ADOPTION OF RULES AND AUDITS, TO PROVIDE FOR APPOINTMENT OF AN
7 ADVISORY COMMITTEE AND PROVIDE DUTIES, TO AUTHORIZE A VENTURE CAPITAL RISK
8 TAX CREDIT IN AN AMOUNT PROVIDED, TO GOVERN THE DETERMINATION OF THE
9 CREDIT ALLOWED AND TO PROVIDE FOR SELECTION OF THE INVESTOR GROUP, TO
10 REQUIRE AN ANNUAL REPORT AND TO PROVIDE THAT THE PROVISIONS OF THIS CHAP-
11 TER ARE NOT A RESTRICTION OR LIMITATION ON THE DEPARTMENT POWERS.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. LEGISLATIVE INTENT. The Legislature finds that the economy of
14 the state is enhanced when venture capital exists in start-up businesses.
15 Therefore, it is the intent of the Legislature to provide for the creation of
16 a venture capital risk tax credit to promote the venture capital industry in
17 the state.
18 SECTION 2. That Title 63, Idaho Code, be, and the same is hereby amended
19 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
20 ter 43, Title 63, Idaho Code, and to read as follows:
21 CHAPTER 43
22 INCENTIVES FOR TARGETED GROWTH
23 63-4301. SHORT TITLE. This chapter shall be known and may be cited as the
24 "Incentives for Targeted Growth Act of 2001."
25 63-4302. DEFINITIONS. For the purposes of this chapter, the following
26 terms have the respective meanings ascribed by this section:
27 (1) "Commission" means the Idaho state tax commission.
28 (2) "Committee" means the venture capital advisory committee created in
29 section 63-4305, Idaho Code.
30 (3) "Department" means the Idaho department of commerce.
31 (4) "Designated investor group" means the investor group selected by the
32 department pursuant to section 63-4305, Idaho Code.
33 (5) "Equity capital" means capital invested in common or preferred stock,
34 royalty rights, limited partnership interests, limited liability company
35 interests, and any other securities or rights that evidence ownership in pri-
36 vate business.
37 (6) "Investor group" means any corporation, partnership, limited liabil-
38 ity company or other lawfully organized entity.
39 (7) "Near-equity capital" means capital invested in unsecured, under-
40 scored, subordinated or convertible loans or debt securities.
2
1 (8) "Person" means an individual, corporation, partnership or other law-
2 fully organized entity.
3 (9) "Venture capital risk tax credit" means a tax credit which is allowed
4 or transferred pursuant to section 63-4306, Idaho Code.
5 (10) "Venture certificate" means the contract between the Idaho department
6 of commerce and the designated investor group.
7 63-4303. DEPARTMENT TO REPORT ANNUALLY. The department shall report annu-
8 ally to the legislature and the public as to the utilization of the incentives
9 available in this chapter. The report shall be due on the fifth legislative
10 day of each regular session and shall specify the utilization of the incen-
11 tives provided in this chapter.
12 63-4304. DEPARTMENT TO ADOPT RULES AND TO AUDIT COMPANIES. The department
13 shall, in conjunction with the department of finance, adopt rules to carry out
14 the provisions of this chapter and may audit or cause to be audited any tax-
15 payer utilizing the incentives provided herein periodically to monitor compli-
16 ance by them with the conditions precedent to the availability of the incen-
17 tives for each year.
18 63-4305. DEPARTMENT TO APPOINT ADVISORY COMMITTEE. The department shall
19 appoint a venture capital advisory committee.
20 (1) The committee shall consist of the director of the department plus
21 four (4) members who shall be appointed by the director of the department.
22 Members of the committee shall be selected based upon outstanding knowledge
23 and leadership and shall possess experience in the management of investments
24 similar in nature and in value to institutional venture capital. The appointed
25 members shall serve for staggered terms of office of four (4) years. Of the
26 initial members, one member (1) shall serve a term expiring December 31, 2002;
27 one member (1) shall serve a term expiring December 31, 2003; one member (1)
28 shall serve a term expiring December 31, 2004; and one member (1) shall serve
29 a term expiring December 31, 2005. Thereafter, terms of office shall be for
30 four (4) years. A vacancy on the committee shall be filled in the same manner
31 as the original appointment except that a person appointed to fill a vacancy
32 shall be appointed to the remainder of the unexpired term. Any member of the
33 committee is eligible for reappointment.
34 (2) Members of the committee shall serve without compensation but shall
35 receive their reasonable and necessary expenses incurred in the conduct of the
36 committee business.
37 (3) The members shall annually elect a chairperson. A majority of the
38 committee shall constitute a quorum, and the affirmative vote of a majority of
39 the members present shall be necessary for any action taken by the committee.
40 No vacancy in the membership of the committee impairs the right of a quorum to
41 exercise all rights and perform all duties of the committee.
42 (4) The committee shall have the authority to advise the department on
43 selection of the designated investor group, and to approve the investments in
44 venture capital funds made by the designated investor group.
45 (5) The department shall provide the committee with such technical assis-
46 tance as the committee requires.
47 (6) Any information submitted to or compiled by the department or the
48 committee with respect to the marketing plans, financial statements, trade
49 secrets, research concepts, methods or projects, or any other proprietary
50 information of persons, firms, associations, partnerships, agencies, corpora-
51 tions or other entities shall be confidential, except to the extent that the
52 person or entity that provided such information or that is the subject of such
3
1 information consents to disclosure. Executive sessions may be held to discuss
2 such materials if deemed necessary by the members of the committee, pursuant
3 to section 67-2345, Idaho Code.
4 63-4306. ALLOWANCE OF VENTURE CAPITAL RISK TAX CREDIT. (1) There shall
5 be allowed to the designated investor group venture capital risk tax credits.
6 The venture capital risk tax credits allowed pursuant to this section shall be
7 freely transferable; however, no such tax credit shall be exercisable before
8 January 1, 2002, nor after January 1, 2025. Venture capital risk tax credits
9 may not be claimed except in accordance with the terms of the venture certifi-
10 cate. The venture capital risk tax credits may be used as a credit against any
11 one (1) or more of the following taxes:
12 (a) The individual income tax levied by chapter 30, title 63, Idaho Code;
13 (b) The corporate income tax levied by chapter 30, title 63, Idaho Code;
14 (c) The income tax levied by section 63-3024, Idaho Code.
15 (2) The department shall certify the amount of venture capital risk tax
16 credits to be allowed to the designated investor group and the years such ven-
17 ture capital risk tax credits may first be claimed pursuant to this chapter.
18 The amount of the credits is subject to the following limits:
19 (a) An amount sufficient to support the raising and investing of thirty
20 million dollars ($30,000,000) of investment capital by the designated
21 investor group.
22 (b) A total amount of five million dollars ($5,000,000) that may be
23 redeemed or used as prepayment in lieu of tax in any calendar year.
24 (c) An amount sufficient only to offset any shortfalls occurring in the
25 scheduled returns to the designated investor group of invested capital and
26 returns on invested capital at rates of return authorized by the depart-
27 ment.
28 Such amounts and such rates, whether fixed rates or variable rates, shall be
29 determined pursuant to a formula stipulated in the venture certificate, shall
30 be binding on the commission, and, once capital is committed by the designated
31 investor group, may not be modified, terminated or rescinded.
32 (3) The department shall, in conjunction with the state tax commission,
33 develop a system for registration of any venture capital risk tax credits
34 allowed or transferred pursuant to this chapter and a system that permits ver-
35 ification that any venture capital risk tax credit claimed upon a tax return
36 is valid and properly taken in the year of claim, and that any transfers of
37 the venture capital risk tax credit are made in accordance with the require-
38 ments of this chapter. Taxpayers may rely upon the provisions of the registra-
39 tion and verification system developed pursuant to this subsection. Such sys-
40 tem shall also permit any person claiming a security interest in any venture
41 capital risk tax credits to record its interest in the registry and, in the
42 case any venture capital risk tax credits are redeemed or utilized as a pre-
43 payment in lieu of tax, to receive direct payment from the department.
44 (4) Notwithstanding any other provisions of law, the department shall
45 have the power to negotiate and enter into the venture certificate and to make
46 any contract, execute any document, perform any act or enter into any finan-
47 cial or other transaction necessary in order to carry out the provisions of
48 this chapter.
49 (5) The venture capital risk tax credits allowed or transferred pursuant
50 to this chapter shall not be considered a security under section 30-1402(12),
51 Idaho Code.
52 (6) The department shall solicit investment plans from qualified investor
53 groups for the raising and investing of capital in accordance with the
54 requirements of this chapter. An investment plan shall address the investor
4
1 group's level of experience, quality of management, investment philosophy and
2 process, probability of success in fundraising, and plan for achieving the
3 purposes of this chapter. The manager of the investor group shall be a person
4 with demonstrated substantial successful experience in the design, implementa-
5 tion, and management of state-sponsored seed and venture capital investment
6 programs and in capital formation. The department shall consider such invest-
7 ment plans and, if at least one (1) investment plan is found to meet the
8 requirements set forth in this section, shall select and certify as the desig-
9 nated investor group, the one (1) investor group deemed best qualified to gen-
10 erate the amount of capital required by this section, and to invest such capi-
11 tal in a private state revolving fund, which will be authorized to make
12 investments in private seed and venture capital partnerships or entities in a
13 manner which will mobilize a wide variety of equity capital and near-equity
14 capital to serve the needs of entrepreneurs in the state, expand the private
15 seed and venture capital industry in the state, strengthen the economy of the
16 state, help businesses in the state to gain access to capital resources, help
17 build a significant, permanent resource available to serve the needs of Idaho
18 businesses and accomplish all these benefits in a way that minimizes the use
19 of venture capital risk tax credits. The designated investor group, upon cer-
20 tification by the department, shall be authorized to exercise all the rights
21 provided hereunder.
22 (7) The department may charge a reasonable fee related to the performance
23 of the private state revolving fund that represents fair compensation for the
24 venture certificate.
25 63-4307. ANNUAL REPORT. The designated investor group shall publish an
26 annual report, which shall include its annual audit, of the activities con-
27 ducted by the designated investor group pursuant to this chapter, and present
28 the report to the governor, the legislature and the department. The annual
29 report shall review the progress of the designated investor group in imple-
30 menting its investment plan, and any use or transfer of venture capital risk
31 tax credits allowed pursuant to this chapter.
32 63-4308. NO LIMITATION ON POWERS OF DEPARTMENT. Nothing contained herein
33 is or shall be construed as a restriction or limitation upon any powers which
34 the department might otherwise have under any other law of this state hereto-
35 fore or hereafter enacted, and the provisions of this chapter are cumulative
36 to such powers. The provisions hereof do and shall be construed to provide a
37 complete, additional and alternative method for the implementation of the
38 chapter as authorized and shall be regarded as supplemental and additional to
39 powers conferred by any other laws.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
Moved by Mader
Seconded by Kellogg
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 300
1 AMENDMENT TO SECTION 2
2 On page 3 of the printed bill, delete lines 42 and 43, and insert: "event
3 that any venture capital risk tax credit that is subject to a security inter-
4 est recorded in the registration and verification system is claimed on a tax
5 return filed with the commission, the commission shall, unless a written
6 waiver by the secured creditor is filed with the return, pay the credit to the
7 secured creditor. Such payment shall be made from the state refund fund pro-
8 vided in section 63-3067, Idaho Code, and such funds are hereby continuously
9 appropriated. The commission, in the manner provided by law, shall assess any
10 resulting deficiency in tax. For the purpose of effecting the registration and
11 verification system provided herein and the other provisions of this chapter,
12 the commission may disclose such information as may be necessary notwithstand-
13 ing the provisions of section 63-3076, Idaho Code, and such disclosed informa-
14 tion shall be confidential and not subject to disclosure by the department.".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 300, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INCENTIVES FOR TARGETED GROWTH THROUGH VENTURE CAPITAL RISK TAX
3 CREDIT; PROVIDING A STATEMENT OF LEGISLATIVE INTENT; AMENDING TITLE 63,
4 IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 43, TITLE 63, IDAHO CODE, TO
5 PROVIDE A SHORT TITLE, TO DEFINE TERMS, TO REQUIRE AN ANNUAL REPORT, TO
6 AUTHORIZE ADOPTION OF RULES AND AUDITS, TO PROVIDE FOR APPOINTMENT OF AN
7 ADVISORY COMMITTEE AND PROVIDE DUTIES, TO AUTHORIZE A VENTURE CAPITAL RISK
8 TAX CREDIT IN AN AMOUNT PROVIDED, TO GOVERN THE DETERMINATION OF THE
9 CREDIT ALLOWED AND TO PROVIDE FOR SELECTION OF THE INVESTOR GROUP, TO
10 REQUIRE AN ANNUAL REPORT AND TO PROVIDE THAT THE PROVISIONS OF THIS CHAP-
11 TER ARE NOT A RESTRICTION OR LIMITATION ON THE DEPARTMENT POWERS.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. LEGISLATIVE INTENT. The Legislature finds that the economy of
14 the state is enhanced when venture capital exists in start-up businesses.
15 Therefore, it is the intent of the Legislature to provide for the creation of
16 a venture capital risk tax credit to promote the venture capital industry in
17 the state.
18 SECTION 2. That Title 63, Idaho Code, be, and the same is hereby amended
19 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
20 ter 43, Title 63, Idaho Code, and to read as follows:
21 CHAPTER 43
22 INCENTIVES FOR TARGETED GROWTH
23 63-4301. SHORT TITLE. This chapter shall be known and may be cited as the
24 "Incentives for Targeted Growth Act of 2001."
25 63-4302. DEFINITIONS. For the purposes of this chapter, the following
26 terms have the respective meanings ascribed by this section:
27 (1) "Commission" means the Idaho state tax commission.
28 (2) "Committee" means the venture capital advisory committee created in
29 section 63-4305, Idaho Code.
30 (3) "Department" means the Idaho department of commerce.
31 (4) "Designated investor group" means the investor group selected by the
32 department pursuant to section 63-4305, Idaho Code.
33 (5) "Equity capital" means capital invested in common or preferred stock,
34 royalty rights, limited partnership interests, limited liability company
35 interests, and any other securities or rights that evidence ownership in pri-
36 vate business.
37 (6) "Investor group" means any corporation, partnership, limited liabil-
38 ity company or other lawfully organized entity.
39 (7) "Near-equity capital" means capital invested in unsecured, under-
40 scored, subordinated or convertible loans or debt securities.
2
1 (8) "Person" means an individual, corporation, partnership or other law-
2 fully organized entity.
3 (9) "Venture capital risk tax credit" means a tax credit which is allowed
4 or transferred pursuant to section 63-4306, Idaho Code.
5 (10) "Venture certificate" means the contract between the Idaho department
6 of commerce and the designated investor group.
7 63-4303. DEPARTMENT TO REPORT ANNUALLY. The department shall report annu-
8 ally to the legislature and the public as to the utilization of the incentives
9 available in this chapter. The report shall be due on the fifth legislative
10 day of each regular session and shall specify the utilization of the incen-
11 tives provided in this chapter.
12 63-4304. DEPARTMENT TO ADOPT RULES AND TO AUDIT COMPANIES. The department
13 shall, in conjunction with the department of finance, adopt rules to carry out
14 the provisions of this chapter and may audit or cause to be audited any tax-
15 payer utilizing the incentives provided herein periodically to monitor compli-
16 ance by them with the conditions precedent to the availability of the incen-
17 tives for each year.
18 63-4305. DEPARTMENT TO APPOINT ADVISORY COMMITTEE. The department shall
19 appoint a venture capital advisory committee.
20 (1) The committee shall consist of the director of the department plus
21 four (4) members who shall be appointed by the director of the department.
22 Members of the committee shall be selected based upon outstanding knowledge
23 and leadership and shall possess experience in the management of investments
24 similar in nature and in value to institutional venture capital. The appointed
25 members shall serve for staggered terms of office of four (4) years. Of the
26 initial members, one member (1) shall serve a term expiring December 31, 2002;
27 one member (1) shall serve a term expiring December 31, 2003; one member (1)
28 shall serve a term expiring December 31, 2004; and one member (1) shall serve
29 a term expiring December 31, 2005. Thereafter, terms of office shall be for
30 four (4) years. A vacancy on the committee shall be filled in the same manner
31 as the original appointment except that a person appointed to fill a vacancy
32 shall be appointed to the remainder of the unexpired term. Any member of the
33 committee is eligible for reappointment.
34 (2) Members of the committee shall serve without compensation but shall
35 receive their reasonable and necessary expenses incurred in the conduct of the
36 committee business.
37 (3) The members shall annually elect a chairperson. A majority of the
38 committee shall constitute a quorum, and the affirmative vote of a majority of
39 the members present shall be necessary for any action taken by the committee.
40 No vacancy in the membership of the committee impairs the right of a quorum to
41 exercise all rights and perform all duties of the committee.
42 (4) The committee shall have the authority to advise the department on
43 selection of the designated investor group, and to approve the investments in
44 venture capital funds made by the designated investor group.
45 (5) The department shall provide the committee with such technical assis-
46 tance as the committee requires.
47 (6) Any information submitted to or compiled by the department or the
48 committee with respect to the marketing plans, financial statements, trade
49 secrets, research concepts, methods or projects, or any other proprietary
50 information of persons, firms, associations, partnerships, agencies, corpora-
51 tions or other entities shall be confidential, except to the extent that the
52 person or entity that provided such information or that is the subject of such
3
1 information consents to disclosure. Executive sessions may be held to discuss
2 such materials if deemed necessary by the members of the committee, pursuant
3 to section 67-2345, Idaho Code.
4 63-4306. ALLOWANCE OF VENTURE CAPITAL RISK TAX CREDIT. (1) There shall
5 be allowed to the designated investor group venture capital risk tax credits.
6 The venture capital risk tax credits allowed pursuant to this section shall be
7 freely transferable; however, no such tax credit shall be exercisable before
8 January 1, 2002, nor after January 1, 2025. Venture capital risk tax credits
9 may not be claimed except in accordance with the terms of the venture certifi-
10 cate. The venture capital risk tax credits may be used as a credit against any
11 one (1) or more of the following taxes:
12 (a) The individual income tax levied by chapter 30, title 63, Idaho Code;
13 (b) The corporate income tax levied by chapter 30, title 63, Idaho Code;
14 (c) The income tax levied by section 63-3024, Idaho Code.
15 (2) The department shall certify the amount of venture capital risk tax
16 credits to be allowed to the designated investor group and the years such ven-
17 ture capital risk tax credits may first be claimed pursuant to this chapter.
18 The amount of the credits is subject to the following limits:
19 (a) An amount sufficient to support the raising and investing of thirty
20 million dollars ($30,000,000) of investment capital by the designated
21 investor group.
22 (b) A total amount of five million dollars ($5,000,000) that may be
23 redeemed or used as prepayment in lieu of tax in any calendar year.
24 (c) An amount sufficient only to offset any shortfalls occurring in the
25 scheduled returns to the designated investor group of invested capital and
26 returns on invested capital at rates of return authorized by the depart-
27 ment.
28 Such amounts and such rates, whether fixed rates or variable rates, shall be
29 determined pursuant to a formula stipulated in the venture certificate, shall
30 be binding on the commission, and, once capital is committed by the designated
31 investor group, may not be modified, terminated or rescinded.
32 (3) The department shall, in conjunction with the state tax commission,
33 develop a system for registration of any venture capital risk tax credits
34 allowed or transferred pursuant to this chapter and a system that permits ver-
35 ification that any venture capital risk tax credit claimed upon a tax return
36 is valid and properly taken in the year of claim, and that any transfers of
37 the venture capital risk tax credit are made in accordance with the require-
38 ments of this chapter. Taxpayers may rely upon the provisions of the registra-
39 tion and verification system developed pursuant to this subsection. Such sys-
40 tem shall also permit any person claiming a security interest in any venture
41 capital risk tax credits to record its interest in the registry and, in the
42 event that any venture capital risk tax credit that is subject to a security
43 interest recorded in the registration and verification system is claimed on a
44 tax return filed with the commission, the commission shall, unless a written
45 waiver by the secured creditor is filed with the return, pay the credit to the
46 secured creditor. Such payment shall be made from the state refund fund pro-
47 vided in section 63-3067, Idaho Code, and such funds are hereby continuously
48 appropriated. The commission, in the manner provided by law, shall assess any
49 resulting deficiency in tax. For the purpose of effecting the registration and
50 verification system provided herein and the other provisions of this chapter,
51 the commission may disclose such information as may be necessary notwithstand-
52 ing the provisions of section 63-3076, Idaho Code, and such disclosed informa-
53 tion shall be confidential and not subject to disclosure by the department.
54 (4) Notwithstanding any other provisions of law, the department shall
4
1 have the power to negotiate and enter into the venture certificate and to make
2 any contract, execute any document, perform any act or enter into any finan-
3 cial or other transaction necessary in order to carry out the provisions of
4 this chapter.
5 (5) The venture capital risk tax credits allowed or transferred pursuant
6 to this chapter shall not be considered a security under section 30-1402(12),
7 Idaho Code.
8 (6) The department shall solicit investment plans from qualified investor
9 groups for the raising and investing of capital in accordance with the
10 requirements of this chapter. An investment plan shall address the investor
11 group's level of experience, quality of management, investment philosophy and
12 process, probability of success in fundraising, and plan for achieving the
13 purposes of this chapter. The manager of the investor group shall be a person
14 with demonstrated substantial successful experience in the design, implementa-
15 tion, and management of state-sponsored seed and venture capital investment
16 programs and in capital formation. The department shall consider such invest-
17 ment plans and, if at least one (1) investment plan is found to meet the
18 requirements set forth in this section, shall select and certify as the desig-
19 nated investor group, the one (1) investor group deemed best qualified to gen-
20 erate the amount of capital required by this section, and to invest such capi-
21 tal in a private state revolving fund, which will be authorized to make
22 investments in private seed and venture capital partnerships or entities in a
23 manner which will mobilize a wide variety of equity capital and near-equity
24 capital to serve the needs of entrepreneurs in the state, expand the private
25 seed and venture capital industry in the state, strengthen the economy of the
26 state, help businesses in the state to gain access to capital resources, help
27 build a significant, permanent resource available to serve the needs of Idaho
28 businesses and accomplish all these benefits in a way that minimizes the use
29 of venture capital risk tax credits. The designated investor group, upon cer-
30 tification by the department, shall be authorized to exercise all the rights
31 provided hereunder.
32 (7) The department may charge a reasonable fee related to the performance
33 of the private state revolving fund that represents fair compensation for the
34 venture certificate.
35 63-4307. ANNUAL REPORT. The designated investor group shall publish an
36 annual report, which shall include its annual audit, of the activities con-
37 ducted by the designated investor group pursuant to this chapter, and present
38 the report to the governor, the legislature and the department. The annual
39 report shall review the progress of the designated investor group in imple-
40 menting its investment plan, and any use or transfer of venture capital risk
41 tax credits allowed pursuant to this chapter.
42 63-4308. NO LIMITATION ON POWERS OF DEPARTMENT. Nothing contained herein
43 is or shall be construed as a restriction or limitation upon any powers which
44 the department might otherwise have under any other law of this state hereto-
45 fore or hereafter enacted, and the provisions of this chapter are cumulative
46 to such powers. The provisions hereof do and shall be construed to provide a
47 complete, additional and alternative method for the implementation of the
48 chapter as authorized and shall be regarded as supplemental and additional to
49 powers conferred by any other laws.
STATEMENT OF PURPOSE
RS 11152
This legislation will establish and promote the development of
the venture capital industry for the long-term economic growth of
the State's economy.
FISCAL IMPACT
Most likely a positive fiscal impact of many millions of dollars,
but there is the potential for a maximum negative impact of $30-
40 million if all venture investments in the State are lost.
Contact
Name: Rep. Dan Mader
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 30