House Bill 1363

AN ACT TO AMEND SECTIONS 57-115-3, 57-115-5, 57-115-7 AND 57-115-9, MISSISSIPPI CODE OF 1972, OF THE MISSISSIPPI SMALL BUSINESS INVESTMENT ACT TO REVISE THE DEFINITION OF "QUALIFIED DISTRIBUTION" UNDER THE ACT TO INCLUDE PAYMENTS OF PRINCIPAL AND INTEREST TO HOLDERS OF A QUALIFIED DEBT INSTRUMENT WHICH MAY BE MADE WITHOUT RESTRICTION; TO REVISE THE AMOUNT OF REDUCTION IN A QUALIFIED INVESTMENT THAT RESULTS FROM THE EARLY REPAYMENT OF SUCH INVESTMENT; TO PROVIDE THAT THE APPLICATION WITH THE MISSISSIPPI DEVELOPMENT AUTHORITY FOR CERTIFICATION AS A PRIMARY AND SECONDARY MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY SHALL INCLUDE A BUSINESS PLAN DETAILING CERTAIN INFORMATION; TO MOVE THE DATE UPON WHICH THE MISSISSIPPI DEVELOPMENT AUTHORITY MISSISSIPPI DEVELOPMENT AUTHORITY MUST BEGIN ACCEPTING APPLICATIONS TO BECOME A MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY FROM NOT LATER THAN AUGUST 1, 2011, TO NOT LATER THAN AUGUST 1, 2012; TO REVISE THE AMOUNT OF THE CREDIT AUTHORIZED FOR A PARTICIPATING INVESTOR MAKING AN INVESTMENT OF DESIGNATED CAPITAL IN A MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY; TO REVISE THE TAXABLE YEARS IN WHICH A PARTICIPATING INVESTOR MAY CLAIM THE CREDIT AGAINST HIS PREMIUM TAX LIABILITY THAT IS AUTHORIZED BY THE ACT; TO PROVIDE THAT FINAL DECERTIFICATION OF A MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY SHALL RESULT IN THE DISALLOWANCE AND RECAPTURE OF ALL THE CREDITS ALLOCATED TO ITS PARTICIPATING INVESTORS IF WITHIN FOUR YEARS AFTER THE ALLOCATION DATE THE MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY HAS NOT INVESTED AN AMOUNT EQUAL TO AT LEAST 85% OF ITS DESIGNATED CAPITAL IN QUALIFIED INVESTMENTS AND TO PROVIDE THAT SUBSEQUENT DECERTIFICATION AFTER SUCH REQUIREMENT IS MET SHALL NOT CAUSE THE DISALLOWANCE OR RECAPTURE OF SUCH CREDITS; TO PROVIDE THAT THE TAX CREDIT AUTHORIZED UNDER THE ACT MAY BE TRANSFERRED TO AN AFFILIATED INSURANCE COMPANY IF PRIOR WRITTEN NOTICE IS GIVEN TO THE MISSISSIPPI DEVELOPMENT AUTHORITY AND THE DEPARTMENT OF REVENUE; TO REMOVE THE REQUIREMENT THAT CREDITS MAY ONLY BE TRANSFERRED TO INVESTORS NAMED IN THE REPORT THAT IS REQUIRED AFTER THE RECEIPT OF DESIGNATED CAPITAL; TO REQUIRE THAT THE PREMIUM TAX CREDITS AUTHORIZED BY THE ACT SHALL BE ALLOCATED IN THE ORDER THAT THE CREDIT APPLICATION CLAIMS ARE FILED WITH THE MISSISSIPPI DEVELOPMENT AUTHORITY AND TO PROVIDE THAT CREDIT ALLOCATION CLAIMS FILED ON THE SAME DAY SHALL BE TREATED AS HAVING BEEN FILED CONTEMPORANEOUSLY; TO PROVIDE THE MANNER IN WHICH CREDITS ARE ALLOCATED IF THEY ARE FILED ON THE SAME DAY AND THE AGGREGATE AMOUNT OF THE CREDIT ALLOCATION CLAIMS EXCEEDS THE AGGREGATE AMOUNT OF CREDITS AUTHORIZED TO BE ISSUED; TO REDUCE THE AMOUNT OF DESIGNATED CAPITAL THAT A MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY MUST INVEST IN QUALIFIED INVESTMENTS BY THE SECOND AND FOURTH YEAR AFTER THE ALLOCATION DATE; TO PROVIDE THAT IF THE MISSISSIPPI DEVELOPMENT AUTHORITY DETERMINES THAT A PROPOSED INVESTMENT DOES NOT MEET THE DEFINITION OF A QUALIFIED INVESTMENT, QUALIFIED BUSINESS OR COMPLY WITH THE MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY'S BUSINESS PLAN, THE MISSISSIPPI DEVELOPMENT AUTHORITY MAY NEVERTHELESS CONSIDER THE PROPOSED INVESTMENT A QUALIFIED INVESTMENT OR A QUALIFIED BUSINESS IF THE MISSISSIPPI DEVELOPMENT AUTHORITY DETERMINES THAT THE PROPOSED INVESTMENT WILL FURTHER ECONOMIC DEVELOPMENT; TO PROVIDE THAT A MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY MAY AT ANY TIME APPLY TO THE MISSISSIPPI DEVELOPMENT AUTHORITY TO AMEND ITS BUSINESS PLAN, WHICH THE MISSISSIPPI DEVELOPMENT AUTHORITY MAY APPROVE IF IT DETERMINES THAT THE PROPOSED AMENDMENT WILL FURTHER ECONOMIC DEVELOPMENT IN THE STATE; TO PROVIDE THAT DESIGNATED CAPITAL AND PROCEEDS OF DESIGNATED CAPITAL RETURNED TO A MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY AFTER BEING ORIGINALLY INVESTED IN QUALIFIED INVESTMENTS MAY BE INVESTED IN ADDITIONAL QUALIFIED INVESTMENTS AND THE INVESTMENT SHALL COUNT TOWARD THE REQUIRED AMOUNT INVESTMENTS OF DESIGNATED CAPITAL IN QUALIFIED INVESTMENTS IF THE QUALIFIED BUSINESS RETURNING THE INITIAL QUALIFIED INVESTMENT OF THE DESIGNATED CAPITAL HAS ATTRACTED FOLLOW-ON INVESTMENT EQUAL TO THE AMOUNT RETURNED TO THE MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY FROM A SOURCE OTHER THAN A MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY; TO PROVIDE THAT, IN ADDITION TO OTHER REQUIREMENTS, IN ORDER FOR A MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY TO MAKE A DISTRIBUTION OTHER THAN A QUALIFIED DISTRIBUTION TO ITS EQUITY HOLDERS, THE MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY MUST ATTRACT FOLLOW-ON INVESTMENT FROM SOURCES OTHER THAN ITSELF OR ANOTHER MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY IN THE QUALIFIED BUSINESSES IN WHICH IT MADE QUALIFIED INVESTMENTS EQUAL TO 100% OF ITS DESIGNATED CAPITAL; TO PROVIDE A NEW JOB PAYING 125% OF THE STATE AVERAGE ANNUAL WAGE MUST BE CREATED AND MAINTAINED FOR THREE YEARS FOR EACH $150,000.00, OR PORTION THEREOF, OF THE CREDIT AWARDED TO THE SMALL BUSINESS INVESTMENT COMPANY; TO AUTHORIZE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO WAIVE THIS REQUIREMENT UNDER CERTAIN CIRCUMSTANCES; TO PROVIDE THAT FOR ALL DISTRIBUTIONS OTHER THAN QUALIFIED DISTRIBUTIONS, IF THE MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY HAS NOT MET OR EXCEEDED THE JOBS CREATION GOAL AGREED TO BY THE MISSISSIPPI DEVELOPMENT AUTHORITY AND THE MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY IN ITS APPLICATION, THE MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY SHALL PAY ALL SUCH DISTRIBUTIONS TO THE STATE AS A FEE UNTIL THE MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY HAS PAID TO THE STATE AN AMOUNT EQUAL TO THE PENALTY AMOUNT; TO PROVIDE THE DATE UPON WHICH A REPORT BY THE MISSISSIPPI DEVELOPMENT AUTHORITY CONTAINING CERTAIN INFORMATION MUST BE FILED; AND FOR RELATED PURPOSES.

In the House of Representatives

• Jeffrey C. Smith

  Sponsor

• Senate committee amendmentPending

l9n doesn't hold this bill's text yet.

In the House of Representatives Feb 20 – Mar 12

1. Feb 20Referred to the House committee on Ways and Means
2. Feb 29Reported from committee in the House: title sufficient, do pass as a committee substitute
3. Mar 12Committee substitute adopted in the House
4. Passed the House

In the Senate Mar 14 – Apr 11

1. Mar 14Sent to the Senate
2. Mar 16Referred to the Senate committee on Finance
3. Apr 3Reported from committee in the Senate: title sufficient, do pass as amended
4. Apr 11Died on the calendar in the Senate