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Sponsors: Reps. Crawford, Harrell, Bales, Merrill, Mitchell, Simrill, Bingham, Allen, Ballentine, Bannister, Barfield, Bedingfield, Bowen, Brantley, R. Brown, Chalk, Clemmons, Cooper, Edge, Gullick, Harrison, Hayes, Herbkersman, Hinson, Hodges, Howard, Jennings, Kelly, Littlejohn, Lowe, Mahaffey, Neilson, M.A. Pitts, Rice, Scarborough, Shoopman, Skelton, D.C. Smith, G.R. Smith, J.R. Smith, Talley, Taylor, Witherspoon and Young
Document Path: l:\council\bills\agm\18743mm07.doc
Introduced in the House on February 21, 2007
Currently residing in the House Committee on Ways and Means
Summary: Venture Capital Authority
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/21/2007 House Introduced and read first time HJ-11 2/21/2007 House Referred to Committee on Ways and Means HJ-11
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VERSIONS OF THIS BILL
TO AMEND SECTION 11-45-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN CONNECTION WITH THE VENTURE CAPITAL INVESTMENT ACT OF SOUTH CAROLINA, SO AS TO SPECIFY THE INVESTMENTS IN ACTIVITIES AT CERTAIN STAGES OF BUSINESS DEVELOPMENT THAT REPRESENT VENTURE CAPITAL INVESTMENTS; AND TO AMEND SECTION 11-45-50, AS AMENDED, RELATING TO THE SELECTION OF INVESTMENT PLANS BY THE SOUTH CAROLINA VENTURE CAPITAL AUTHORITY, SO AS TO REQUIRE THAT ACTIVITIES IN CERTAIN STAGES OF BUSINESS DEVELOPMENT BE SELECTED IN CERTAIN PERCENTAGES FOR INVESTMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 11-45-30(9) of the 1976 Code, as last amended by Act 125 of 2005, is further amended to read:
"(9) 'Venture capital' means equity, near-equity, and seed capital financing including, without limitation, early stage research and development capital for startup enterprises, and other equity, near-equity, or seed capital for growth and expansion of entrepreneurial enterprises. 'Venture capital' includes financing at these levels of business development:
(a) Series A: Funds are allocated to develop a business concept, conduct research, produce prototypes, and bring the company to the point where it has a commercially viable product or service offering; to further develop the company's products and finance marketing efforts at a relatively early stage; and to start commercial manufacturing and expand marketing efforts;
(b) Series B: Money is allocated to finance the growth and development of an established company. Funds may be used to increase production, develop new products, increase marketing, or provide greater working capital; and
(c) Series C: Funds represent capital infusion potentially needed for new market or product development or expansion, acquisitions, a public offering, or the sale of the business."
SECTION 2. Section 11-45-50(A)(3) of the 1976 Code, as last amended by Act 125 of 2005, is further amended to read:
"(3) The authority shall consider the investment plans submitted pursuant to this section and shall select one or more designated investor groups
deemed considered best qualified to:
(a) capitalize one or more private revolving funds in accordance with this chapter;
(b) invest the capital as permitted by this chapter in a manner mobilizing equity, near-equity or seed capital investments in ventures promoting the economic development goals of this State;
(c) help build a significant, fiscally strong, and permanent resource to serve the objectives expressed in this chapter
. ; and
(d) represent at least sixty percent of available funding being allocated and disbursed to Series A level activities and less than forty percent being allocated and disbursed to Series B and C level activities, as defined in Section 11-45-30(9)(a), (b), and (c)."
SECTION 3. This act takes effect upon approval by the Governor and applies to disbursements made on or after that date.
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