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SENATE AMENDED
PRIOR PRINTER'S NOS. 1775, 4007
PRINTER'S NO. 4124
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1437
Session of
2019
INTRODUCED BY M. K. KELLER, GALLOWAY, CAUSER, EVERETT, GREINER,
HERSHEY, JONES, JOZWIAK, KLUNK, MILLARD, PASHINSKI, PICKETT,
PUSKARIC, PYLE, ROTHMAN, SCHMITT, SNYDER, STRUZZI, TOOHIL,
ZIMMERMAN, OWLETT, GLEIM, CALTAGIRONE AND HARKINS,
MAY 8, 2019
AS AMENDED ON SECOND CONSIDERATION, IN SENATE, JULY 13, 2020
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," IN CITY REVITALIZATION AND IMPROVEMENT ZONES,
FURTHER PROVIDING FOR REPORTS AND FOR RESTRICTIONS; AND, in
rural jobs and investment tax credit, further providing for
definitions, for rural growth funds, for requirements, for
rural growth fund failure to comply, for reporting
obligations, for business firms, for tax credit certificates,
for claiming the tax credit, for prohibitions, AND for
revocation of tax credit certificates and for exit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "principal business
operations," "qualified tax liability," "rural business" and
"rural growth investment" in section 1822-G of the act of March
4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
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amended and the section is amended by adding definitions to
read:
SECTION 1. THE DEFINITION OF "QUALIFIED TAX LIABILITY" IN
SECTION 1822-G OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN
AS THE TAX REFORM CODE OF 1971, IS AMENDED TO READ:
SECTION 1. SECTION 1809-C(A) AND (B) OF THE ACT OF MARCH 4,
1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, ARE
AMENDED AND SUBSECTION (C) IS AMENDED BY ADDING A PARAGRAPH TO
READ:
SECTION 1809-C. REPORTS.
(A) STATE ZONE REPORT.--NO LATER THAN JUNE 15 FOLLOWING THE
BASELINE YEAR AND EACH YEAR THEREAFTER, OR BY AUGUST 31 FOR
REPORTS DUE IN 2020, EACH QUALIFIED BUSINESS SHALL FILE A REPORT
WITH THE DEPARTMENT IN A FORM OR MANNER REQUIRED BY THE
DEPARTMENT WHICH INCLUDES ALL OF THE FOLLOWING:
(1) AMOUNT OF EACH ELIGIBLE TAX WHICH WAS PAID TO THE
COMMONWEALTH BY THE QUALIFIED BUSINESS IN THE PRIOR CALENDAR
YEAR.
(2) AMOUNT OF EACH ELIGIBLE TAX REFUND RECEIVED FROM THE
COMMONWEALTH IN THE PRIOR CALENDAR YEAR BY THE QUALIFIED
BUSINESS.
(B) LOCAL ZONE REPORT.--NO LATER THAN JUNE 15 FOLLOWING THE
BASELINE YEAR AND FOR EACH YEAR THEREAFTER, OR BY AUGUST 31 FOR
REPORTS DUE IN 2020, EACH QUALIFIED BUSINESS SHALL FILE A REPORT
WITH THE LOCAL TAXING AUTHORITY WHICH INCLUDES ALL OF THE
FOLLOWING:
(1) AMOUNT OF EACH ELIGIBLE TAX WHICH WAS PAID TO THE
LOCAL TAXING AUTHORITY BY THE QUALIFIED BUSINESS IN THE PRIOR
CALENDAR YEAR.
(2) AMOUNT OF EACH ELIGIBLE TAX REFUND RECEIVED FROM THE
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LOCAL TAXING AUTHORITY IN THE PRIOR CALENDAR YEAR BY THE
QUALIFIED BUSINESS.
(C) PENALTIES.--
* * *
(5) NO PENALTY SHALL BE IMPOSED BY THE DEPARTMENT OR THE
LOCAL TAXING AUTHORITY FOR FAILURE TO FILE A TIMELY AND
COMPLETE REPORT UNDER SUBSECTION (A) OR (B) IN 2019 OR 2020.
SECTION 2. SECTION 1813-C(B) AND (C)(1) OF THE ACT ARE
AMENDED AND SUBSECTION (A) IS AMENDED BY ADDING A PARAGRAPH TO
READ:
SECTION 1813-C. RESTRICTIONS.
(A) UTILIZATION.--MONEY TRANSFERRED UNDER SECTION 1812-C MAY
ONLY BE UTILIZED FOR THE FOLLOWING:
* * *
(1.2) PAYMENT OF GRANTS AND LOANS TO QUALIFYING
BUSINESSES, POLITICAL SUBDIVISIONS AND MUNICIPAL AUTHORITIES
OPERATING WITHIN THE ZONE FOR BUSINESS OPERATING EXPENSES,
WORKING CAPITAL, BUSINESS LOAN PAYMENTS TO FINANCIAL
INSTITUTIONS, PAYROLL TO CURRENT EMPLOYEES AS A MEANS OF
RETAINING EMPLOYEES, ESTABLISHMENT OF LOAN GUARANTEE ACCOUNTS
WITH FINANCIAL INSTITUTIONS TO GUARANTEE SHORT-TERM LOAN
PROVIDED BY THE FINANCIAL INSTITUTIONS TO QUALIFYING
BUSINESSES NEGATIVELY IMPACTED BY THE PROCLAMATION OF
DISASTER EMERGENCY ISSUED BY THE GOVERNOR ON MARCH 6, 2020,
PUBLISHED AT 50 PA.B. 1644 (MARCH 21, 2020), AND ANY RENEWAL
OF THE STATE OF DISASTER EMERGENCY. THIS PARAGRAPH SHALL
EXPIRE JUNE 30, 2021.
* * *
(B) PROHIBITION.--
(1) MONEY TRANSFERRED UNDER SECTION 1812-C MAY NOT BE
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UTILIZED FOR MAINTENANCE OR REPAIR OF A FACILITY.
(2) PARAGRAPH (1) SHALL NOT APPLY FOR THE PERIOD OF
APRIL 1, 2020, THROUGH JUNE 30, 2021.
(C) EXCESS MONEY.--
(1) EXCEPT AS SET FORTH IN PARAGRAPH (4), IF THE AMOUNT
OF MONEY TRANSFERRED TO THE FUND UNDER SECTIONS 1811-C(C) AND
1812-C IN ANY ONE CALENDAR YEAR EXCEEDS THE MONEY UTILIZED,
BUDGETED OR APPROPRIATED BY OFFICIAL RESOLUTION OF THE
CONTRACTING AUTHORITY UNDER THIS SECTION IN THAT CALENDAR
YEAR, THE CONTRACTING AUTHORITY SHALL SUBMIT BY APRIL 15
FOLLOWING THE END OF THE CALENDAR YEAR [THE EXCESS MONEY],
ANY MONEY NOT UTILIZED, BUDGETED OR APPROPRIATED BY OFFICIAL
RESOLUTION OF THE CONTRACTING AUTHORITY TO THE STATE
TREASURER FOR DEPOSIT INTO THE GENERAL FUND.
* * *
SECTION 3. THE DEFINITION OF "QUALIFIED TAX LIABILITY" IN
SECTION 1822-G OF THE ACT IS AMENDED TO READ:
Section 1822-G. Definitions.
The following words and phrases when used in this part shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Full-time equivalent employee." The quotient obtained by
dividing the total number of hours for which employees were
compensated for employment over the preceding 12-month period by
2,080.
* * *
"Jobs created." Full-time equivalent employee positions
that:
(1) Are created by the rural business.
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(2) Are currently located in this Commonwealth.
(3) Were not located in this Commonwealth at the time of
the rural growth investment in the rural business.
(4) Pay at least 150% of the Federal or State minimum
wage, whichever is greater.
"Jobs retained." Full-time equivalent employee positions
that:
(1) Are l ocated in this Commonwealth.
(2) Existed before the initial rural growth investment
in the rural business.
(3) Pay at least 150% of the Federal or State minimum
wage, whichever is greater.
(4) Would have been lost or moved out of this
Commonwealth had a rural growth investment not been made, as
certified in writing by an executive officer of the rural
business and approved by the department.
"Principal business operations." The place or places where
at least 60% of a rural business' employees work or where
employees that are paid at least 60% of the business' payroll
work. An out-of-State business that has agreed to relocate
employees or an in-State business that has agreed to hire
employees using the proceeds of a rural growth investment to
establish principal business operations in a rural area in this
Commonwealth shall be deemed to have the principal business
operations in this new location if the business satisfies this
definition within 180 days after receiving the rural growth
investment, unless the department agrees to a later date.
"Qualified tax liability." The liability for taxes imposed
under Article VII, VIII, IX or XV, the tax under Article XVI of
the act of May 17, 1921 (P.L.682, No.284), known as The
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Insurance Company Law of 1921, or amounts imposed under section
212 of the act of May 17, 1921 (P.L.789, No.285), known as The
Insurance Department Act of 1921 and any other retaliatory tax
imposed on a business firm in this Commonwealth.
* * *
"Rural business." A business that, at the time of the
initial rural growth investment in the business by a rural
growth fund, meets the following conditions:
(1) Has fewer than [250] 150 employees and not more than
$15,000,000 in net income as determined by generally accepted
accounting principles for the preceding calendar year.
(2) Has principal business operations in one or more
rural areas in this Commonwealth.
(3) Is engaged in industries related to manufacturing,
plant sciences, services or technology or, if not engaged in
those industries, the department makes a determination that
the investment will be highly beneficial to the economic
growth of this Commonwealth.
* * *
"Rural growth investment." A capital or equity investment in
a rural business or any loan to a rural business with a stated
maturity at least one year after the date of issuance. A secured
loan or a revolving line of credit provided to a rural business
is a rural growth investment only if the growth fund obtains an
affidavit from the president or chief executive officer or
equivalent position of the rural business attesting that the
rural business sought and was denied similar financing from a
commercial bank.
"State repayment amount." The amount by which the rural
growth fund's credit-eligible capital contributions exceed the
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product obtained by multiplying $30,000 by the aggregate number
of jobs created and jobs retained reported in annual reports
under section 1827-G(b).
* * *
Section 2. Sections 1824-G(b)(2) and (3), (d)(4) and (e),
1825-G(a)(2), 1826-G(a), 1827-G, 1828-G(c), 1829-G(b)(2.1) and
(3), 1830-G, 1832-G(c), 1833-G(a) and 1834-G(a) of the act are
amended to read:
SECTION 2 4. SECTION 1824-G(D)(2) AND (F) OF THE ACT ARE
AMENDED TO READ:
Section 1824-G. Rural growth funds.
* * *
(b) Information.--An application to qualify as a rural
growth fund shall include all of the following:
* * *
(2) Documents and other evidence sufficient to prove to
the satisfaction of the department that the applicant meets
all of the following criteria:
(i) The applicant or an affiliate of the applicant
is licensed as a rural business investment company under
the Consolidated Farm and Rural Development Act (Public
Law 87-128, 75 Stat. 307) or as a small business
investment company under the Small Business Investment
Act of 1958 (Public Law 85-699, 72 Stat. 689).
(ii) Evidence that as of the date the application is
submitted, the applicant or affiliates of the applicant
have invested at least $100,000,000 in nonpublic
companies located in rural areas of this Commonwealth or
other states.
(iii) At least one principal in a rural business
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investment company or a small business investment company
has been an officer or employee of the applicant or of an
affiliate of the applicant for at least four years prior
to the date the application is submitted.
(3) An estimate of the number of jobs [that will be]
created or retained in this Commonwealth [as a result of]
that will result from the applicant's rural growth
investments.
* * *
(d) Notice of approval or disapproval.--
* * *
(4) An applicant may resubmit the application within 30
days after receipt of a notice of disapproval[.] and provide
additional information to complete, clarify or cure defects
identified in the application by the department. The
department shall consider that application submitted before
any pending applications submitted after the date the
application was originally submitted.
(e) Request for determination.--A rural growth fund, before
making a rural growth investment, may request from the
department a written opinion as to whether the business in which
the rural growth fund [proposed] proposes to invest is a rural
business. The department shall notify the rural growth fund of
the determination within 15 days after receipt of the request.
If the department fails to notify a rural growth fund of the
determination within 15 days, the business in which the rural
growth fund proposes to invest shall be considered a rural
business.
* * *
Section 1825-G. Requirements.
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(a) Collections.--Upon receiving approval under section
1824-G, a rural growth fund must do all of the following within
60 days:
* * *
(2) Collect one or more investments of cash that, when
added to the contributions collected under paragraph (1),
equal the rural growth fund's investment authority. At least
10% of the rural growth fund's investment authority shall be
comprised of equity investments contributed, directly or
indirectly, by affiliates of the rural growth fund, including
employees, officers and directors of the affiliates.
* * *
Section 1826-G. Rural growth fund failure to comply.
(a) Revocation.--If a rural growth fund fails to meet the
requirements of section 1825-G, the rural growth fund's approval
shall be revoked, and, the corresponding investment authority
and credit-eligible capital contributions may not be included in
determining the limits on total investment authority and credit-
eligible capital contributions prescribed in sections 1824-G(f)
and 1828-G(c), respectively.
* * *
Section 1827-G. Reporting obligations.
(a) Initial report.--Each rural growth fund shall submit a
report to the department on or before the fifth business day
after the second anniversary of the closing date. The report
shall provide documentation as to the rural growth fund's rural
growth investments and include the following information:
(1) A bank statement evidencing each rural growth
investment.
(2) The name, location and industry of each business
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receiving a rural growth investment, including either the
determination letter issued by the department under section
1824-G(e) or other evidence that the business qualified as a
rural business at the time the investment was made.
(3) [The number of jobs created or retained as a result
of the fund's rural growth investments as of the last day of
the preceding calendar year.
(4)] Any other information required by the department.
(b) Annual report.--No later than March 1 of each year
following the [year in which the report required under
subsection (a) is due,] closing date the rural growth fund shall
submit an annual report to the department that includes the
following information:
(1) The number of jobs created [or retained as a result
of the fund's rural growth investments as of the last day of
the preceding calendar year.] and retained at each rural
business. The number of jobs created and retained shall be
calculated as follows:
(i) The number of jobs created by a rural business
is calculated each year by subtracting the number of
full-time equivalent employee positions in this
Commonwealth at the time of the initial rural growth
investment in the rural business from the monthly average
of those employment positions for that year. If the
number calculated is less than zero, the number shall be
reported as zero. The monthly average of full-time
equivalent employee positions for a year is calculated by
adding together the number of full-time equivalent
employee positions existing on the last day of each month
of the year and dividing by 12.
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(ii) The number of jobs retained by a rural business
is calculated each year based on the monthly average of
full-time equivalent employee positions for that year.
The monthly average of full-time equivalent employee
positions for a year is calculated by adding together the
number of full-time equivalent employee positions
existing on the last day of each month of the year and
dividing by 12. The reported number of jobs retained for
a year may not exceed the number reported on the annual
report under this subsection. The rural growth fund shall
reduce the number of jobs retained for a year if
employment at the rural business drops below the number
reported on the annual report.
(1.1) If not provided under subsection (a)(2), the name
and location of each business receiving a rural growth
investment, including either the determination letter issued
by the department under section 1824-G(e) or other evidence
that the business qualified as a rural business at the time
the investment was made.
(2) The average [annual salary] hourly wage of the jobs
reported in paragraph (1).
(3) Any other information required by the department.
(2) A NOTICE OF APPROVAL SHALL SPECIFY THE AMOUNT OF THE
APPLICANT'S INVESTMENT AUTHORITY AS DETERMINED BY THE
DEPARTMENT AFTER REVIEWING THE INFORMATION SUBMITTED IN
ACCORDANCE WITH SUBSECTION (B) AND THE AMOUNT OF CREDIT-
ELIGIBLE CONTRIBUTION AUTHORITY ALLOCATED TO EACH BUSINESS
FIRM THAT SUBMITTED AN AFFIDAVIT IN THE APPLICATION. AT LEAST
60% OF A GROWTH FUND'S INVESTMENT AUTHORITY SHALL BE
COMPRISED OF CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
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* * *
(F) LIMITATION.--THE DEPARTMENT MAY NOT APPROVE MORE THAN
[$100,000,000] $50,000,000 IN INVESTMENT AUTHORITY UNDER THIS
PART.
SECTION 2.1 5. SECTIONS 1828-G(C), 1829-G(B)(3), 1830-G AND
1833-G(A) OF THE ACT, AMENDED JUNE 28, 2019 (P.L.50, NO.13), ARE
AMENDED TO READ:
Section 1828-G. Business firms.
* * *
(c) Limitation.--The department may not approve more than
[$4,000,000] [$30,000,000] $60,000,000 in credit-eligible
capital contributions under this part.
Section 1829-G. Tax credit certificates.
* * *
(b) Review, recommendation and approval.--
* * *
(2.1) [A tax credit] Tax credits awarded under this
section to a business firm shall not exceed [90%] the amount
of the credit-eligible capital contributions made by [a] the
business firm.
(3) In awarding tax credit certificates under this part,
the department:
(i) Beginning with fiscal year [2017-2018] 2019-2020
[2019-2020] 2020-2021, may not award tax credit
certificates that would result in the utilization of more
than [$1,000,000] $12,000,000 $6,000,000 in tax credits
in any fiscal year, except for tax credits carried
forward.
(ii) May not award more than [$4,000,000]
[$30,000,000] $60,000,000 in tax credit certificates, in
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the aggregate, under this part.
Section 1830-G. Claiming the tax credit.
(a) Presentation.--Beginning July 1, [2017] 2019 [2019]
2020, upon presenting a tax credit certificate to the Department
of Revenue, a business firm may claim a tax credit of up to
[25%] 20% 20% of the amount awarded under section 1829-G for
each of the taxable years that includes the third, fourth, fifth
[and], , sixth and seventh AND SEVENTH anniversaries of the
closing date, exclusive of any tax credit amounts carried over
under section 1831-G(b).
(b) Allowance.--The Department of Revenue shall allow a tax
credit against any tax due under Article VII, VIII, IX or XV,
the tax under Article XVI of the act of May 17, 1921 (P.L.682,
No.284), known as The Insurance Company Law of 1921, amounts
imposed under section 212 of the act of May 17, 1921 (P.L.789,
No.285), known as The Insurance Department Act of 1921, any
retaliatory taxes imposed by this Commonwealth or any tax
substituted in lieu of one of the taxes under this subsection.
Section 1832-G. Prohibitions.
* * *
(c) Business activities.--Neither a rural growth fund nor
any business firm that invests in the rural growth fund shall be
an affiliate of or have a pecuniary interest in a rural business
that receives a rural growth investment from the rural growth
fund prior to the rural growth fund's initial rural growth
investment in the rural business.
Section 1833-G. Revocation of tax credit certificates.
(a) Revocation.--The department shall revoke a tax credit
certificate awarded under section 1829-G if any of the following
occur with respect to a rural growth fund before the rural
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growth RURAL GROWTH fund exits the program under section 1834-G:
(1) The rural growth fund in which the credit-eligible
capital contribution was made does not invest all of its
investment authority in rural growth investments in this
Commonwealth within [two] three THREE years of the closing
date with at least 25% of its investment authority initially
invested in rural businesses engaged in manufacturing.
(2) The rural growth fund, after satisfying the
conditions of paragraph (1), fails to maintain rural growth
investments equal to 100% of its investment authority until
the [sixth] seventh SEVENTH anniversary of the closing date.
For the purposes of this paragraph, [an] a rural growth A
RURAL GROWTH investment is "maintained" even if the rural
growth RURAL GROWTH investment is sold or repaid so long as
the rural growth fund reinvests an amount equal to the
capital returned or recovered by the rural growth RURAL
GROWTH fund from the original rural growth RURAL GROWTH
investment, exclusive of any profits realized, in other rural
growth investments in this Commonwealth within 12 months of
the receipt of the capital. Amounts received periodically by
a rural growth fund shall be treated as continually invested
in rural growth investments if the amounts are reinvested in
one or more rural growth investments by the end of the
following calendar year. A rural growth fund is not required
to reinvest capital returned from rural growth investments
after the [fifth] sixth SIXTH anniversary of the closing
date, and the rural growth investments shall be considered
held continuously by the rural growth fund through the
[sixth] seventh SEVENTH anniversary of the closing date.
(3) The rural growth fund, before exiting the program in
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accordance with section 1834-G, makes a distribution or
payment that results in the rural growth fund having less
than 100% of its investment authority invested in rural
growth investments in this Commonwealth or available for
investment in rural growth investments and held in cash and
other marketable securities.
[(4) The rural growth fund invests more than 20% of its
investment authority in the same rural business, including
amounts invested in affiliates of the rural business.]
(4) THE RURAL GROWTH FUND INVESTS MORE THAN 20% OF ITS
INVESTMENT AUTHORITY, EXCLUSIVE OF RECEIPTS OR REDEEMED RURAL
GROWTH INVESTMENTS, IN THE SAME RURAL BUSINESS, INCLUDING
AMOUNTS INVESTED IN AFFILIATES OF THE RURAL BUSINESS.
(5) The rural growth fund makes a rural growth
investment in a rural business that directly or indirectly
through an affiliate owns, has the right to acquire an
ownership interest, makes a loan to or makes an investment in
the rural growth fund, an affiliate of the rural growth fund
or an investor in the rural growth fund. This paragraph does
not apply to investments in publicly traded securities by a
rural business or an owner or affiliate of a rural business.
For purposes of this paragraph, a rural growth fund shall not
be considered an affiliate of a rural business solely as a
result of its rural growth investment. The amount by which a
rural growth investment in a rural business, exclusive of
receipts or redeemed rural growth investments, exceeds 20% of
a rural growth fund's investment authority may not count
toward the satisfaction of the requirements of subsections
(a)(1) and (2). [THE AMOUNT BY WHICH A RURAL GROWTH
INVESTMENT IN A RURAL BUSINESS, EXCLUSIVE OF RECEIPTS OR
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REDEEMED RURAL GROWTH INVESTMENTS, EXCEEDS 20% OF A RURAL
GROWTH FUND'S INVESTMENT AUTHORITY MAY NOT COUNT TOWARD THE
SATISFACTION OF THE REQUIREMENTS OF SUBSECTIONS (A)(1) AND
(2).]
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Section 1834-G. Exit.
(a) Application for exit.--On or after the [sixth] seventh
anniversary of the closing date, a rural growth fund may apply
to the department to exit the Rural Jobs and Investment Tax
Credit Program and no longer be subject to regulation under this
part. A rural growth fund shall calculate the State repayment
amount in its application for exit and if the product is greater
than the rural growth fund's credit-eligible capital
contributions, the State repayment amount shall equal zero. The
department shall respond to the application within 30 days after
receipt and confirm the State repayment amount. In evaluating
the application, the fact that no tax credit certificates have
been revoked and that the rural growth fund has not received a
notice of revocation that has not been cured under section 1833-
G(b) shall be sufficient evidence to show that the rural growth
fund is eligible for exit. The department may not deny an
application submitted under this subsection without reasonable
cause. If the application is denied, the department shall issue
a notice which shall include the reasons for the denial. If the
rural growth fund owes a State repayment amount, the rural
growth fund may not be permitted to make distributions or
payments in excess of the investment authority until the rural
growth fund first remits the State repayment amount to the
department . All amounts received by the department under this
section shall be credited to the general revenue fund.
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* * *
Section 3. This act shall take effect in 60 days.
SECTION 6. THE AMENDMENT OF SECTION 1813-C(B) AND (C)(1) OF
THE ACT SHALL APPLY RETROACTIVELY TO JANUARY 1, 2019.
SECTION 7. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
(1) THE AMENDMENT OF SECTIONS 1822-G, 1824-G(D)(2) AND
(F), 1829-G(B)(3), 1830-G AND 1833-G(O) OF THE ACT SHALL TAKE
EFFECT IN 60 DAYS.
(2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
IMMEDIATELY.
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