23 LC 43 2635
H. B. 413
- 1 -
House Bill 413
By: Representatives Williams of the 148
th
, Meeks of the 178
th
, Rhodes of the 124
th
, Dickey
of the 145
th
, Blackmon of the 146
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 33-1-25 of the Official Code of Georgia Annotated, relating to the
1
"Georgia Agribusiness and Rural Jobs Act," so as to provide for a second round of funding2
and period for applications; to increase an application fee and provide for an annual3
maintenance fee; to change certain reporting requirements; to revise and provide for4
definitions; to provide for related matters; to provide for an effective date; to repeal5
conflicting laws; and for other purposes.6
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
SECTION 1.8
Code Section 33-1-25 of the Official Code of Georgia Annotated, relating to the "Georgia9
Agribusiness and Rural Jobs Act," is amended in subsection (b) by revising paragraphs (3)10
and (6) and adding a new paragraph to read as follows:11
"(.1) '2023 allocation' means the second round of funding provided for in paragraph (6.1)
12
of subsection (e) of this Code section."13
"(3) 'Capital investment' means any equity investment in a rural fund by a rural investor14
that:15
(A) Is acquired after July 1, 2017, at its original issuance solely in exchange for cash;16 23 LC 43 2635
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(B) Has 100 percent of its cash purchase price used by the rural fund to make qualified
17
investments in eligible businesses located in this state by the second anniversary of the18
initial credit allowance date; and19
(C) Is designated by the rural fund as a capital investment under this Code section and20
is certified by the department pursuant to subsection (e) of this Code section. This21
term shall include any capital investment that does not meet the provisions of22
subsection (e)(1)(A)
subparagraph (e)(1.3)(A) of this Code section if such investment23
was a capital investment in the hands of a prior holder."24
"(6) 'Eligible business' means a business that, at the time of the initial qualified25
investment in the company, has less than 250 employees and its principal business26
operations are located in one or more rural areas or qualified areas in this state, provided27
that such business:28
(A) Has less than 250 employees; and29
(B)(i) Has its principal business operations in one or more rural areas in this state;30
and31
(ii)(A) Produces or provides any goods or services produced in Georgia normally used32
by farmers, ranchers, or producers and harvesters of aquatic products in their business33
operations, or to improve the welfare or livelihood of such persons;, or is34
(B) Is involved in the processing and marketing of agricultural products, farm supplies,35
and input suppliers;, or is 36
(C) Is engaged in agribusiness as defined by the United States Department of37
Agriculture;, or is 38
(D) Is engaged in manufacturing, health care, technology, transportation, or related39
services;, or40
(E) Is determined by the department to be an if not engaged in such industries, the41
department determines that such investment that will be beneficial to the rural area and42
the economic growth of the state.43 23 LC 43 2635
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Any business which is classified as an eligible business at the time of the initial
44
investment in said business by a rural fund shall remain classified as an eligible business45
and may receive follow-on investments from any rural fund, and such follow-on46
investments shall be qualified investments even though such business may not meet the47
definition of an eligible business at the time of such follow-on investments."48
SECTION 2.49
Said Code section is further amended by revising subsections (e) and (k) and by adding a50
new subsection (l) to read as follows:51
"(e)(1) A rural fund that seeks to have an equity investment certified as a capital52
investment and eligible for credits under this Code section shall apply to the department.53
(1.1) For the first round of funding provided for in paragraph (6) of this subsection, the
54
The department shall begin accepting applications within 90 days of July 1, 2017, and55
shall cease accepting applications on June 30, 2023.56
(1.2) For the second round of funding provided for in paragraph (6.1) of this subsection,57
the department shall begin accepting applications on August 1, 2023, and shall cease58
accepting applications after such second round of funding is exhausted.59
(1.3) The rural fund shall include the following in its application:60
(A) The amount of capital investment requested;61
(B) A copy of the applicant's or an affiliate of the applicant's license as a rural business62
investment company under 7 U.S.C. Section 2009cc or as a small business investment63
company under 15 U.S.C. Section 681 and a certificate executed by an executive officer64
of the applicant attesting that such license remains in effect and has not been revoked;65
(C) Evidence that, as of the date the application is submitted, the applicant or affiliates66
of the applicant have invested at least $100 million in nonpublic companies located in67
rural areas within the United States;68 23 LC 43 2635
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(D) An estimate of the number of jobs that will be created or retained in this state as
69
a result of the applicant's qualified investments;70
(E) A business plan that includes a revenue impact assessment projecting state and71
local tax revenue to be generated by the applicant's proposed qualified investments72
prepared by a nationally recognized, third-party, independent economic forecasting firm73
using a dynamic economic forecasting model that analyzes the applicant's business plan74
over the ten years following the date the application is submitted to the department; and75
(F) A nonrefundable application fee of $5,000.00 for the first round of funding
76
provided for in paragraph (6) of this subsection and $25,000.00 for the second round77
of funding provided for in paragraph (6.1) of this subsection, payable to the department.78
(2) Within 30 days after receipt of a completed application, the department shall grant79
or deny the application in full or in part. The department shall deny the application if:80
(A) The applicant does not satisfy all of the criteria described in paragraph (1) (1.3)81
of this subsection;82
(B) The revenue impact assessment submitted with the application does not83
demonstrate that the applicant's business plan will result in a positive economic impact84
on this state over a ten-year period that exceeds the cumulative amount of tax credits85
that would be issued to the applicant if the application were approved; or86
(C) The department has already approved the maximum amount of capital investment87
authority under paragraph (6) or paragraph (6.1) of this subsection, whichever88
paragraph is applicable.89
If the department denies any part of the application, it shall inform the applicant of the90
grounds for the denial. If the applicant provides any additional information required by91
the department or otherwise completes its application within 15 days of the notice of92
denial, the application shall be considered completed as of the original date of93
submission. If the applicant fails to provide the information or fails to complete its94 23 LC 43 2635
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application within the 15 day period, the application remains denied and must be
95
resubmitted in full with a new submission date.96
(3) If the application is complete, the department shall certify the proposed equity97
investment as a capital investment that is eligible for credits under this Code section,98
subject to the limitations contained in paragraph (6) or paragraph (6.1)
of this subsection,99
whichever paragraph is applicable. The department shall provide written notice of the100
certification to the rural fund.101
(4) The department shall certify capital investments in the order that the applications102
were received by the department. Applications received on the same day shall be deemed103
to have been received simultaneously.104
(5) For applications that are complete and received on the same day, the department105
shall certify applications in proportionate percentages based upon the ratio of the amount106
of capital investments requested in an application to the total amount of capital107
investments requested in all applications.108
(6) For the first round of funding, the The department shall certify $100 million in capital109
investments pursuant to this Code section until the earlier of the date that such funds are110
exhausted, or June 30, 2023.111
(6.1) For the second round of funding, beginning on August 1, 2023, the department112
shall certify $100 million in capital investments pursuant to this Code section until such113
funds are exhausted.114
(7) Within 60 days of the applicant receiving notice of certification, the rural fund shall115
issue the capital investment to and receive cash in the amount of the certified amount116
from a rural investor. At least 50 percent of the rural investor's capital investment shall117
be composed of capital raised by the rural investor from sources, including directors,118
members, employees, officers, and affiliates of the rural investor, other than the amount119
of capital invested by the allocatee claiming the tax credits in exchange for such120
allocation of tax credits. The rural fund shall provide the department with evidence of121 23 LC 43 2635
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the receipt of the cash investment within 65 days of the applicant receiving notice of
122
certification. If the rural fund does not receive the cash investment and issue the capital123
investment within such time period following receipt of the certification notice, the124
certification shall lapse and the rural fund shall not issue the capital investment without125
reapplying to the department for certification. Lapsed certifications revert to the126
authority and shall be reissued pro rata to applicants whose capital investment allocations127
were reduced pursuant to paragraph (5) of this subsection and then in accordance with the128
application process."129
"(k)(1) Rural funds shall submit a report to the department within the first
15 business130
days after the second anniversary of the initial credit allowance date each capital131
investment that provides documentation of: as to the investment of 100 percent of the132
purchase price of such capital investment in qualified investments. Such report shall133
include:134
(A) The location of each eligible business receiving a qualified investment;135
(B) Bank statements of such rural fund evidencing each qualified investment;136
(C) A copy of the written opinion of the department set forth in subsection (j) of this137
Code section or evidence that such business was an eligible business at the time of such138
qualified investment, as applicable;139
(D) The number of employment positions created and retained as a result of qualified140
investments;141
(E) The average annual salary of positions described in subparagraph (D) of this142
paragraph; and143
(F) Such other information required by the department.144
(2) Thereafter, rural funds shall submit an annual report to the department within 45145
days of the beginning of the calendar year during the compliance period. The report shall146
include but is not limited to the following:147 23 LC 43 2635
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(A) The number of employment positions created and retained as a result of qualified
148
investments; and
149
(B) The average annual salary of positions described in subparagraph (A) of this150
paragraph; and151
(C) The rural fund's total eligible capital investments as a percentage of its total capital152
investments.153
(l) With respect to the second round of funding provided for in paragraph (6.1) of154
subsection (e) of this Code section, each rural fund shall pay an annual maintenance fee155
of $7,500.00 to the department, beginning one year after the date of the initial credit156
allowance and annually thereafter for five years."157
SECTION 3.158
This Act shall become effective upon its approval by the Governor or upon its becoming law159
without such approval.160
SECTION 4.161
All laws and parts of laws in conflict with this Act are repealed.162