§1923. Definitions

            For the purposes of this Chapter, the following terms shall have the meanings provided in this Section, unless the context clearly indicates otherwise:

            (1) "Approved technology-based businesses" means any qualified Louisiana business that is a qualified Louisiana technology-based business, the investment in which is approved in writing by at least two of the Louisiana research parks at the time.

            (2) "Certified capital" means an investment pursuant to R.S. 51:1924(A) and (B) or an investment pursuant to R.S. 22:832(E) into a certified Louisiana capital company.

            (3) "Certified Louisiana capital company" means any partnership, corporation, or other legal entity, whether organized on a profit or nonprofit basis, that has as its primary business activity the investment of cash in such a manner as to acquire equity in or provide financing assistance as a licensed business and industrial development corporation to qualified Louisiana businesses that are in need of capital for survival, expansion, new product development, or similar business purposes and that is certified by the commissioner of the office of financial institutions, as meeting the criteria of this Chapter and thus eligible for the tax credit provided in this Chapter.

            (4) "Certified Louisiana capital company group" means any one or more certified Louisiana capital companies which share common management or are under common control, whether such management or control is accomplished directly or indirectly.

            (5) "Commissioner" means the commissioner of the Office of Financial Institutions within the office of the governor.

            (6) "Department" means Louisiana Economic Development.

            (7) "Disadvantaged business" means, with respect to all investment pools certified after January 1, 2002, any qualified Louisiana business that has its headquarters located, at the time of investment, in a low-income community, as such term is defined in Section 45(D)(e) of the Internal Revenue Code of 1986, as amended.

            (8) "Equity in a qualified Louisiana business" is defined as an interest that in substance and in form is either:

            (a) Common stock, preferred stock, or an equivalent ownership interest in a limited liability company, partnership, or other entity.

            (b) A loan with a stated maturity of not less than five years which provides for conversion into equity at a future date or has equity features. The department shall promulgate rules to determine what constitutes equity features for the purpose of this definition.

            (9) "Investment date" means, with respect to each investment pool, the date on which the investment pool transaction closes.

            (10) "Investment pool" means the aggregate of all investments of certified capital in a particular certified Louisiana capital company which are made as part of the same transaction.

            (11)(a) "Louisiana research park" means any property-based venture located in the state of Louisiana which has all of the following elements:

            (i) Existing or planned land and buildings designed primarily for private and public research and development facilities, high technology and science-based companies, and support services.

            (ii) A contractual and/or formal ownership or operational relationship with one or more universities or other institutions of higher education and science research.

            (iii) A role in promoting research and development by the university in partnership with industry, assisting in the growth of new ventures, and promoting economic development.

            (iv) A role in aiding the transfer of technology and business skills between the university and industry tenants.

            (b) A Louisiana research park may be a not-for-profit or for-profit entity owned wholly or partially by a university or a university-related entity. Alternatively, a Louisiana research park may be owned by a non-university entity but have a contractual or other formal relationship with a university, including joint or cooperative ventures between a privately developed research park and a university.

            (12) "Qualified investment" means:

            An investment that in substance and in form furthers economic development within Louisiana as defined by rule and is either:

            (a)(i) A transaction that consists of the investment of cash and results in the acquisition of equity in a qualified Louisiana business; or

            (ii) Financing assistance provided in cash to a qualified Louisiana business by a business and industrial development corporation licensed pursuant to the Louisiana Business and Industrial Development Corporation Act, R.S. 51:2386 et seq.

            (b) An equity investment or debt investment which has a stated final maturity date of not less than five years from the origination of the debt investment in a qualified venture fund approved by the secretary.

            (c) An equity or debt investment in a Louisiana-based economic development infrastructure project approved by the secretary.

            (d) An equity or debt investment in a qualified technology fund approved by the secretary.

            (13)(a) "Qualified Louisiana business" means a business that at the time of investment meets, or, as the direct result of an investment pursuant to this Chapter would meet, each of the following requirements:

            (i) Operates primarily in Louisiana or performs substantially all of its production in Louisiana, or is headquartered in Louisiana with a substantial portion of its assets located in Louisiana and which is in need of capital and is involved in commerce for the purpose of retail, or the manufacturing, processing, or assembling of products, or conducting research and development, or providing services, provided that at least eighty percent of the total employees of such business shall be domiciled in the state of Louisiana and that at least eighty percent of the payroll of such business shall be paid to such employees.

            (ii) Has, together with its affiliates, a net worth which is not in excess of eighteen million dollars.

            (iii) Has, together with its affiliates, an average annual net income, after federal income taxes, excluding any carry-over losses, for the preceding two completed fiscal years which is not in excess of six million dollars.

            (iv) Has, together with its affiliates, no more than five hundred employees.

            (b) Any business, which is classified as a qualified Louisiana business at the time of the first investment in said business by a certified Louisiana capital company, shall remain classified as a qualified Louisiana business for any later additional investment into the business by that certified Louisiana capital company, provided each additional investment meets the definition of a qualified investment.

            (14) "Qualified Louisiana startup business" means any qualified Louisiana business that is in development or has been operational for less than two years and is in need of capital for pre-startup, startup, survival, expansion, new product development, or similar business purpose or that is determined by the secretary as meeting the criteria of this Paragraph.

            (15) "Qualified Louisiana technology-based business" means any qualified Louisiana business that is in need of capital for pre-startup, startup, survival, expansion stage, new product development, or similar business purpose that is engaged in or intends to provide technology-based products or services in information technology, communications, medical, biomedical, advanced materials, food, environmental, micro-manufacturing technologies, or that is determined by the secretary as meeting the criteria of this Paragraph.

            (16) "Qualified technology fund" means any venture capital or private equity fund that meets all of the following criteria:

            (a) The fund is managed or proposed to be managed directly or indirectly with representation from any of the following Louisiana research parks that elects to provide such representation: the Louisiana Technology Park in Baton Rouge, the University of New Orleans Research and Technology Park in New Orleans, the University Research Park in Lafayette and the InterTech Science Park in Shreveport; or any other technology parks certified by the secretary.

            (b) The fund agrees to make all of the investments made by it with the proceeds of any investment from a certified Louisiana capital company in qualified Louisiana technology-based businesses.

            (c) The investment policy of the qualified technology fund shall expressly provide that investments from the qualified technology fund may be made in qualified businesses located anywhere within the state of Louisiana.

            (d) The fund agrees that the commissioner shall regulate the investment of the certified capital received by the qualified technology fund pursuant to rules promulgated by the secretary.

            (17) "Qualified venture fund" means any certified Louisiana capital company that is designated a specialty business and industrial development corporation as defined in this Section and which is further certified by the secretary as meeting all of the following criteria:

            (a) The fund's primary investment objectives include investing in Louisiana businesses in amounts not exceeding one million dollars.

            (b) The fund agrees to make all of the investments made by it with the proceeds of any investment from a certified Louisiana capital company in qualified Louisiana businesses.

            (c) A qualified venture fund shall not be an affiliate of a certified capital company that invests in a qualified venture fund.

            (d) A qualified venture fund shall not have raised directly or combined with its affiliates more than ten million in certified capital, excluding any funds invested by a certified capital company as a qualified investment in a qualified venture fund pursuant to this Chapter. For purposes of this definition "affiliate" means a person or legal entity controlling, controlled by or under common control with, another person or legal entity, directly or indirectly through one or more intermediaries.

            (e) The fund shall agree that the commissioner shall regulate the investment of the certified capital received by the qualified venture fund pursuant to rules promulgated by the secretary.

            (18) "Research park early stage business" means any qualified Louisiana business that is a qualified Louisiana startup business which receives assistance from or has its principal place of business located at a Louisiana research park.

            (19) "Secretary" means the secretary of Louisiana Economic Development.

            (20) "Specialty business and industrial development corporation" means any business and industrial development corporation licensed after January 1, 2002, and approved by the secretary as meeting one or more of the following criteria:

            (a) A business and industrial development corporation that provides more than fifty percent of its qualified investments in businesses that are fifty-one percent owned or controlled by minorities or women.

            (b) A business and industrial development corporation that provides more than fifty percent of its qualified investments in disadvantaged businesses.

            (c) A business and industrial development corporation that is a nonprofit corporation providing more than fifty percent of its qualified investments in disadvantaged businesses or to businesses that are more than fifty percent owned or controlled by minorities or women.

            (d) A business and industrial development corporation that is more than fifty percent owned or controlled in its daily operation by minorities or women. For purposes of this Subparagraph, any business and industrial development corporation that has been designated as a specialty business and industrial development corporation by the secretary prior to January 1, 2002, shall be considered a specialty business and industrial development corporation for purposes of this Section.

            Acts 1983, No. 642, §1; Acts 1989, No. 496, §1; Acts 1993, No. 279, §2, eff. June 2, 1993; Acts 1996, No. 21, §2, eff. June 27, 1996; Acts 2001, No. 8, §17, eff. July 1, 2001; Acts 2001, No. 9, §9, eff. July 1, 2001; Acts 2001, No. 1122, §1, eff. July 1, 2001; Acts 2002, No. 84, §2, eff. June 25, 2002; Acts 2008, No. 415, §2, eff. Jan. 1, 2009.