Source: https://code.dccouncil.us/dc/council/code/sections/31-5231.html
Timestamp: 2019-04-20 06:38:17+00:00

Document:
D.C. Law Library - § 31–5231. Definitions.
(E) Any person who is an officer, director, employee, or agent of the Certified Capital Company or Certified Investor or an immediate family member of the officer, director, employee, or agent.
(2) “Allocation Date” means the date on which the Certified Investors of a Certified Capital Company are allocated Premium Tax Credits by the Commissioner under § 31-5234.
(3) “Certified Capital” means an investment of cash by a Certified Investor in a Certified Capital Company that fully funds the purchase price of an equity interest in the Certified Capital Company, a Qualified Debt Instrument, or a combination of the two.
(4) “Certified Capital Company” means a partnership, corporation, trust, or limited liability company, whether organized on a profit or not for profit basis, that has as its primary business activity the investment of cash in Qualified Businesses and that is certified by the Commissioner as meeting the criteria of this chapter.
(5) “Certified Investor” means any insurance company, approved by the Commissioner, that invests Certified Capital pursuant to an allocation of Premium Tax Credits under § 31-5234.
(6) “Commissioner” means the Commissioner of Insurance and Securities Regulation [Commissioner of the Department of Insurance, Securities, and Banking].
(8) “District Premium Tax Liability” means any liability incurred by an insurance company under § 31-205 or, in the case of a repeal or reduction by the District of the tax imposed by § 31-205, any other tax liability incurred by an insurance company under District law.
(C) Comparison of each of the measures set forth in subparagraphs (A) and (B) of this paragraph among all Certified Capital Companies.
(8B) “Follow-on Investment” means any Qualified Investment that a Certified Capital Company makes in a Qualified Business that is subsequent to its Initial Investment in that Qualified Business.
(8C) “Initial Investment” means the 1st Qualified Investment that a Certified Capital Company makes in a Qualified Business after May 27, 2010.
(9) “Person” means any natural person or entity, including a corporation, general or limited partnership, trust, or limited liability company.
(10) “Premium Tax Credit” means a tax credit which may be applied against a Certified Investor’s District Premium Tax Liability under § 31-5233.
(11) “Premium Tax Credit Allocation Request” means an application for allocation of Premium Tax Credits prepared and executed by a Certified Investor on a form provided by the Commissioner and filed by a Certified Capital Company with the Commissioner.
(11A) “Principal Business Operations” means the location where a business conducts its primary business activities, its managers and the majority of its employees work, and its material books and records are maintained.
(vii) The business does not have an ownership interest, investment interest, compensation agreement, or similar financial relationship with a Certified Capital Company or any affiliate of a Certified Capital Company before the date on which a Certified Capital Company makes an Initial Investment in the business; provided, that this sub-subparagraph shall not prohibit a Certified Capital Company from providing financial, technical or similar advice to a business before making an investment in such business.
(iv) Engaged in the provision of professional services by accountants, lawyers, or physicians.
(13) “Qualified Debt Instrument” means a debt instrument issued to a Certified Investor by a Certified Capital Company, at par value or a premium, with an original maturity date of at least 5 years from date of issuance and a repayment schedule which is no faster than a level principal amortization over 5 years, which does not permit the Certified Investor to receive prepayment of interest, and which contains no interest, distribution, or payment features which are related to the profitability of the issuing Certified Capital Company or the performance of its investment portfolio.
(C) Any projected increase in federal or state taxes of the direct or indirect equity holders of a Certified Capital Company resulting from the earnings or other tax liability of the Certified Capital Company to the extent that the increase is related to the direct or indirect ownership of a Certified Capital Company.
(B) A Certified Capital Company, after an investment and assuming the conversion and exercise of any equity participation or hybrid security, shall not own more than 49% of the voting equity of the Qualified Business.
(ii) The District of Columbia Enterprise Zone as defined by section 1400 of the Internal Revenue Code of 1986, approved August 5, 1997 (111 Stat. 863; 26 U.S.C. § 1400).
(17) “Tier Two Qualified Business” means any Qualified Business that did not receive a Qualified Investment prior to May 27, 2010, that is not a Tier One Qualified Business, and that is engaged in one of the lines of business set forth in paragraph (16)(B)(i) through (x) of this section as its primary line of business.
(18) “Tier Three Qualified Business” means any Qualified Business that did not receive a Qualified Investment prior to May 27, 2010, and that is not a Tier One Qualified Business or a Tier Two Qualified Business.
This section is referenced in § 31-5232 and § 31-5235.
D.C. Law 15-354, in par. (8), validated previously made technical corrections.
D.C. Law 18-181 added pars. (8A), (8B), (8C), (11A), and (16) to (18); and rewrote pars. (12) and (15).
The 2015 amendment by D.C. Law 20-155 repealed (16)(C)(i).
For temporary (90 days) amendment of this section, see §§ 9017(c) and 9029 of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).
For temporary (90 days) amendment of this section, see § 9017(c) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).
For temporary (90 days) amendment of this section, see § 9017(c) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).
Section 9029 of D.C. Law 20-155 provided that the amendment by § 9017(c) of the act shall apply as of September 30, 2014.

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