Senate Bill 2659

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 PROVIDE THAT REASONABLE COSTS AND EXPENSES OF FORMING, SYNDICATING AND ORGANIZING A MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY THAT ARE PAID TO NOT MORE THAN ONE PARTICIPATING INVESTOR ARE INCLUDED IN THE DEFINITION OF "QUALIFIED DISTRIBUTION"; 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 PROVIDE THAT A JOB SHALL BE CREATED OR RETAINED IF THE JOB PAYS 125% OF THE STATE AVERAGE ANNUAL WAGE AND IS MAINTAINED FOR THREE YEARS FOR EACH $150,000.00, OR PORTION THEREOF, OF THE CREDITS AWARDED TO THE SMALL BUSINESS INVESTMENT COMPANY; TO INCREASE FROM 80% TO 100% THE AMOUNT OF A PARTICIPATING INVESTOR'S INVESTMENT THAT MAY BE EARNED AS A CREDIT AGAINST THE INVESTOR'S PREMIUM TAX LIABILITY; TO MOVE THE DATE UPON WHICH THE MISSISSIPPI DEVELOPMENT AUTHORITY (MDA) 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 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 MDA 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 MDA 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 MDA 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 MDA MAY NEVERTHELESS CONSIDER THE PROPOSED INVESTMENT A QUALIFIED INVESTMENT OR A QUALIFIED BUSINESS IF THE MDA 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 MDA TO AMEND ITS BUSINESS PLAN, WHICH THE MDA 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 RETURNS THE CAPITAL PURSUANT TO REGULARLY SCHEDULED AMORTIZATION PAYMENTS, RETURNS THE CAPITAL AFTER A CHANGE IN CONTROL OR SALE OF THE COMPANY OR SUBSTANTIALLY ALL OF ITS ASSETS, RETURNS THE CAPITAL TO THE MISSISSIPPI SMALL BUSINESS INVESTMENT COMPANY AFTER DEFAULTING ON THE TERMS OF THE INVESTMENT, OR 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 AUTHORIZE THE MDA TO WAIVE THIS JOB CREATION AND RETENTION GOALS 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 MDA 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 MDA CONTAINING CERTAIN INFORMATION MUST BE FILED; AND FOR RELATED PURPOSES.

In the Senate

• Joey Fillingane

  Sponsor

• House of Representatives committee amendmentAdopted

  Adopted Apr 4

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

In the Senate Feb 20 – Mar 13

1. Feb 20Referred to the Senate committee on Finance
2. Mar 1Reported from committee in the Senate: title sufficient, do pass as a committee substitute
3. Mar 13Committee substitute adopted in the Senate
4. Passed the Senate

In the House of Representatives Mar 15 – Apr 4

1. Mar 15Sent to the House
2. Mar 19Referred to the House committee on Ways and Means
3. Mar 29Reported from committee in the House: title sufficient, do pass as amended
4. Apr 4Amended in the House
5. Passed the House as amended

Back in the Senate Apr 5 – May 7

1. Apr 5Returned to the Senate to concur in the House's amendments
2. Apr 10Declined in the Senate to concur, and invited a conference
3. Apr 24Conferees named in the Senate: Fillingane, Flowers and Longwitz
4. Apr 25Conferees named in the House: Smith (39th), Rogers (61st) and Reynolds
5. Apr 29Conference report filed in the House
6. Conference report filed in the Senate
7. Apr 30Conference report adopted in the House
8. May 1Conference report adopted in the Senate
9. Motion in the Senate to reconsider entered
10. May 2Motion in the Senate to reconsider tabled
11. May 7Enrolled bill signed in the Senate

To the Governor May 8 – May 23

1. May 8Enrolled bill signed in the House
2. May 23Approved by the Governor