HB286: HB286 Seed-Capital Fund; create a subfund to provide startup capital to certain small businesses; provisions

25 LC 50 1031 House Bill 286 By: Representatives Neal of the 79th, Powell of the 33rd, Carpenter of the 4th, Stephens of the 164th, Gambill of the 15th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 10 of Title 10 of the Official Code of Georgia Annotated, relating to the1 Seed-Capital Fund, so as to create a subfund to provide startup capital to certain small2 businesses that are majority owned by students or graduates of a small business program of3 study of TCSG; to provide for terms and conditions; to provide for conforming changes; to4 provide for definitions; to provide for related matters; to rep eal conflicting laws; and for5 other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Chapter 10 of Title 10 of the Official Code of Georgia Annotate d, relating to the9 Seed-Capital Fund, is amended by revising subsection (a) of Code Section 10-10-3, relating10 to administration of fund, equity contributions, and disbursements, as follows:11 "(a) The fund is created as a separate fund maintained by the board or a body designated12 by the board and shall be expended only as provided in this article. Pending their use as13 equity contributions or as loans pursuant to this chapter , the moneys in the fund may be14 invested and reinvested in accordance with the investment policies authorized by the board15 or its designee. The entire cost of administration of the fund , including expenses of the16 H. B. 286 - 1 - 25 LC 50 1031 center incurred in connection with the creation, operation, management, liquidation, and17 investment of fund moneys in enterprises, directly or through investment entities, may be18 paid from the assets of the fund. All moneys appropriated to o r otherwise paid into the19 fund shall be presumptively concluded to have been committed to the purpose for which20 they have been appropriated or paid and shall not lapse."21 SECTION 2.22 Said chapter is further amended by adding a new Code section to read as follows:23 "10-10-8.24 (a) As used in this Code section, the term:25 (1) 'Program entrepreneur' means any student currently enrolled in or any graduate of a26 small business program.27 (2) 'Small business' means any corporation, partnership, sole proprietorship, or other28 business entity which is organized under the laws of this state and which:29 (A) Is owned 51 percent or more by one or more program entrepreneurs;30 (B) Is not dominant in its field;31 (C) Has been in operation for less than ten total years; and32 (D) Is engaged in innovative work in the area of technology, m anufacturing, or33 agriculture.34 (3) 'Small business program' means any program of study established by TSCG or a unit35 of TCSG to provide education, tr aining, and technical assistanc e to program36 entrepreneurs.37 (4) 'Startup capital' means money provided to a small business pursuant to this Code38 section to be used exclusively for costs directly incurred in the normal course of starting39 and operating a business.40 (5) 'Subfund' means the small business innovation startup capi tal subfund created in41 subsection (b) of this Code section.42 H. B. 286 - 2 - 25 LC 50 1031 (6) 'TCSG' means the Technical College System of Georgia.43 (b) There is created within the fund the small business innovation startup capital subfund.44 The subfund shall consist of all moneys authorized by law for d eposit in the fund,45 including, but not limited to, gifts, grants, private donations, and funds from government46 entities. Moneys in the subfund shall be invested in the same manner as moneys in the47 fund, and any interest earned on the investment of moneys in the subfund shall be credited48 to the subfund. Moneys appropriated to or otherwise deposited i nto the subfund shall be49 used exclusively for the purposes of administering the subfund and providing startup50 capital to small businesses.51 (c) The center may, in cooperation with TCSG, disburse money f rom the subfund to52 provide startup capital to small businesses, provided that:53 (1) The small business meets the conditions of this Code section and any requirements54 established by the center and TCSG pursuant to this Code section;55 (2) The center and TCSG approve a completed application submit ted by the small56 business that contains:57 (A) A detailed business plan, including detailed descriptions of the business, its58 products and services, and its management and operation; market analysis; and59 financial projections;60 (B) A statement of the amount, timing, and projected use of the startup capital;61 (C) A statement demonstrating the potential economic and public impact of the small62 business;63 (D) A statement demonstrating how the small business is engaged in innovative work64 in the area of technology, manufacturing, or agriculture; and65 (E) Such other information as the center or TCSG shall require; and66 (3) The center and TCSG find, based upon the application submi tted by the small67 business and such additional investigation as the center and TC SG shall make and68 incorporate in its records, that:69 H. B. 286 - 3 - 25 LC 50 1031 (A) The startup capital will be used only for costs directly i ncurred in the normal70 course of starting and operating a small business;71 (B) The small business has a reasonable chance of success;72 (C) The startup capital will be instrumental to the success of the small business and its73 retention within this state;74 (D) The program entrepreneur and other founders of the small business have already75 made or are contractually committed to make a substantial finan cial or time76 commitment to the small business; and77 (E) The state will secure a return on the investment of the startup capital in the form78 of establishment and growth of an innovative business in this state that will create new,79 value added products, processes, or services, and encouragement of further growth and80 diversification of and investment in the economy of this state.81 (d) The center, in cooperation with TCSG, shall establish guid elines and procedures to82 administer the provisions of this Code section."83 SECTION 3.84 All laws and parts of laws in conflict with this Act are repealed.85 H. 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