North Carolina 2021-2022 Session Status: In Committee 2 D cosponsors

SB 649 — North Carolina Venture Fund.

Last action — Passed 1st Reading

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021-2022 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

42 added · 43 removed

Plain-language change summary

The latest version of SB 649 clarifies the governance structure of the Corporation by defining the role of the Board of Directors and their responsibilities more clearly. Additionally, it emphasizes the requirement for board members to avoid conflicts of interest, particularly in relation to voting on matters that may involve personal or business relationships. This change is important as it enhances transparency and accountability within the Corporation, ensuring that decisions are made in the best interest of the community instead of individual interests.

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FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA Apr 6, 2021 S.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2021 S 1 SENATE BILL 649 Short Title:
649 SESSION 2021 PRINCIPAL CLERK S D SENATE BILL DRS15255-MC-59 Short Title:
A BILL TO BE ENTITLED AN ACT TO PROVIDE FUNDING FOR INITIAL CAPITAL FOR DEVELOPING TECHNOLOGY COMPANIES AND VENTURES.
Rules and Operations of the Senate April 7, 2021 A BILL TO BE ENTITLED AN ACT TO PROVIDE FUNDING FOR INITIAL CAPITAL FOR DEVELOPING TECHNOLOGY COMPANIES AND VENTURES.
*DRS15255-MC-59* General Assembly Of North Carolina Session 2021 b.
*S649-v-1* General Assembly Of North Carolina Session 2021 b.
– The Corporation shall be governed by a Board of Directors.
– The Corporation shall be governed bya Board of Directors.
The Board may appoint members of an advisory committee and, if appointed, shall adopt policies establishing the responsibilities of the advisory committee.
The Board may appoint members of an advisory committee and, if appointed, shall adopt policies establishing the responsibilities of the advisorycommittee.
Page 2 DRS15255-MC-59 General Assembly Of North Carolina Session 2021 All members of the Board shall remain in office until their successors are appointed and qualify.
Page 2 Senate Bill 649-First Edition General Assembly Of North Carolina Session 2021 All members of the Board shall remain in office until their successors are appointed and qualify.
A person appointed to fill a vacancy shall qualify in the same manner as a person appointed for a full term.
A person appointed to fill a vacancy shall qualifyin the same manner as a person appointed for a full term.
The Governor may remove any member of the Board for misfeasance, malfeasance, or nonfeasance in accordance with G.S.
The Governor mayremove any member of the Board for misfeasance, malfeasance, or nonfeasance in accordance with G.S.
– The Attorney General is the legal advisor to the Corporation and shall assign one assistant Attorney General as general counsel to the Corporation, which shall (i) advise the Executive Director, the Board, and any other official of the Corporation as requested by the Corporation, (ii) supervise any other assistant Attorneys General assigned to the Corporation by the Attorney General, and (iii) perform for the Corporation any other duties the Attorney General assigns.
– The Attorney General is the legal advisor to the Corporation and shall assign one assistant Attorney General as general counsel to the Corporation, which shall (i) advise the Executive Director, the Board, and any other official of the Corporation as requested by the Corporation, (ii) supervise any other assistant Attorneys General assigned to the Corporation bythe AttorneyGeneral, and (iii) perform for the Corporation any other duties the Attorney General assigns.
– The Corporation shall adopt and publish a policy for conflicts of interest policy and gifts to guide actions bythe Board, officers, and employees of the Corporation in the performance of their duties.
– The Corporation shall adopt and publish a policy for conflicts of interest policyand gifts to guide actions bythe Board, officers, and employees of the Corporation in the performance of their duties.
No subject person of the Corporation may take any official action or use the subject person's official position to profit in any manner the subject person, the subject person's immediate family, a business with which the subject person or the subject person's immediate family has a business association, or a client of the subject person or the subject person's immediate family with whom the subject person, or the subject person's immediate DRS15255-MC-59 Page 3 General Assembly Of North Carolina Session 2021 family, has an existing business relationship.
No subject person of the Corporation may take any official action or use the subject person's official position to profit in any manner the subject person, the subject person's immediate family, a business with which the subject person or the subject person's immediate family has a business association, or a client of the subject person or the subject person's immediate family with whom the subject person, or the subject person's immediate Senate Bill 649-First Edition Page 3 General Assembly Of North Carolina Session 2021 family, has an existing business relationship.
If the profit under this subdivision would be greater for the subject person than other persons living in the area where the potential investment is located, not only shall the subject person abstain from voting on that issue, but once the conflict of interest is apparent, the subject person shall not discuss thepotential investmentwith anyothersubject personorrepresentative except to state that a conflict of interest exists.
If the profit under this subdivision would be greater for the subject person than other persons living in the area where the potential investment is located, not onlyshall the subject person abstain from voting on that issue, but once the conflict of interest is apparent, the subject person shall not discuss thepotential investmentwith anyothersubject person or representative except to state that a conflict of interest exists.
Under this subdivision, a subject person is presumed to profit if the profit would be realized by the subject person, the subject person's immediate family, a business with which the subject person or the subject person's immediate family has a business association, or a client of the subject person or the subject person's immediate family with whom the subject person, or the subject person's immediate family, has an existing business relationship with a companythatis thesubject of a potential investment.
Under this subdivision, a subject person is presumed to profit if the profit would be realized by the subject person, the subject person's immediate family, a business with which the subject person or the subject person's immediate family has a business association, or a client of the subject person or the subject person's immediate family with whom the subject person, or the subject person's immediate family, has an existingbusiness relationship with acompanythat is thesubject of a potential investment.
Page 4 DRS15255-MC-59 General Assembly Of North Carolina Session 2021 b.
Page 4 Senate Bill 649-First Edition General Assembly Of North Carolina Session 2021 b.
Accept loans,grants, orassistanceofanykind from thefederal orState government, a local government, a college or university, or a private source.
Accept loans, grants, orassistanceofanykind from thefederal orState government, a local government, a college or university, or a private source.
– By entering into an agreement, providing an investment, or otherwise acting,theCorporationis notobligatingtheStateoranysubdivisionoftheState.TheCorporation has no power to pledge the credit of the State or to impose any obligation upon the State or any DRS15255-MC-59 Page 5 General Assembly Of North Carolina Session 2021 subdivisionoftheState,exceptandwhensuchpowerisexpresslygrantedby statuteorbyexpress consent of the State or subdivision.
– By entering into an agreement, providing an investment, or otherwise acting,theCorporationis notobligatingtheStateor anysubdivisionoftheState.TheCorporation has no power to pledge the credit of the State or to impose any obligation upon the State or any Senate Bill 649-First Edition Page 5 General Assembly Of North Carolina Session 2021 subdivisionoftheState,exceptandwhensuchpowerisexpresslygrantedbystatuteorbyexpress consent of the State or subdivision.
– The Board of Governors of The University of North Carolina and the State Board of Community Colleges may contract with the Corporation or its subsidiaries, assign to the Corporation or its subsidiaries intellectual property and other resources to assist it in development and activities, and assign faculty and staff to the Corporation.
– The Board of Governors of The University of North Carolina and the State Board of Community Colleges may contract with the Corporation or its subsidiaries, assign to the Corporation or its subsidiaries intellectual propertyand other resources to assist it in development and activities, and assign faculty and staff to the Corporation.
– The Corporation shall conduct outreach activities that seek to includerural areas in the various opportunities resulting from activitiesof the Corporation.Those outreach activities shall include all of the following:
– The Corporation shall conduct outreach activities that seek to includerural areas in the various opportunities resultingfrom activitiesof the Corporation.Those outreach activities shall include all of the following:
(1) Working with the entities identified in subsection (k) of this section to support faculty and students involved in science and engineering who focus on opportunities in rural areas.
(1) Workingwith the entities identified in subsection (k) of this section to support faculty and students involved in science and engineering who focus on opportunities in rural areas.
(4) Partnering with regional economic development entities to foster local efforts to support technology businesses in rural areas or otherwise identify networks of technology businesses, entrepreneurs, and individuals operating in rural areas.
(4) Partnering with regional economic development entities to foster local efforts to support technologybusinesses in rural areas or otherwise identify networks of technology businesses, entrepreneurs, and individuals operating in rural areas.
Page 6 DRS15255-MC-59 General Assembly Of North Carolina Session 2021 (2) On or before October 1 of each year and quarterly thereafter on the qualified businesses receiving support through programs administered by the Corporation, including (i) the number of employees in the State, (ii) the number of employees outside of the State, (iii) thecapital or other investments made in the State, and (iv) the proposed job creation or capital investment in the State as a result of investment by or support of the Corporation.
Page 6 Senate Bill 649-First Edition General Assembly Of North Carolina Session 2021 (2) On or before October 1 of each year and quarterly thereafter on the qualified businesses receiving support through programs administered by the Corporation, including (i) the number of employees in the State, (ii) the number of employees outside of the State, (iii) thecapital or other investments made in the State, and (iv) the proposed job creation or capital investment in the State as a result of investment by or support of the Corporation.
Aperson appointed to fill avacancy shall qualify in the same manner as a person appointed for a full term.
Aperson appointed to fill avacancyshall qualify in the same manner as a person appointed for a full term.
– Anact oftheAuthoritymust beapprovedby amajority voteofthemembers attending a meeting at which a quorum is present.
– Anact oftheAuthoritymust beapprovedbyamajorityvoteofthemembers attending a meeting at which a quorum is present.
The purpose of the Fund is to make DRS15255-MC-59 Page 7 General Assembly Of North Carolina Session 2021 qualified investments in qualified businesses located throughout the State to provide greater access to startup companies.
The purpose of the Fund is to make Senate Bill 649-First Edition Page 7 General Assembly Of North Carolina Session 2021 qualified investments in qualified businesses located throughout the State to provide greater access to startup companies.
Subject to the approval of the Corporation, the Authority may enter into written agreements, including partnership agreements and sideagreements, necessaryto carry out the provisions ofthis subpart.
Subject to the approval of the Corporation, the Authority may enter into written agreements, including partnership agreements and sideagreements, necessaryto carryout the provisions ofthis subpart.
(3) The extent of an applicant's commitment to making investments that (i) create employment opportunities in the State, (ii) grow the State economy and qualified businesses in the State, (iii) complement the research and development projects of State academic institutions, and (iv) foster the Page 8 DRS15255-MC-59 General Assembly Of North Carolina Session 2021 development of technologies and industries that present opportunities for the growth of qualified businesses in the State.
(3) The extent of an applicant's commitment to making investments that (i) create employment opportunities in the State, (ii) grow the State economy and qualified businesses in the State, (iii) complement the research and development projects of State academic institutions, and (iv) foster the Page 8 Senate Bill 649-First Edition General Assembly Of North Carolina Session 2021 development of technologies and industries that present opportunities for the growth of qualified businesses in the State.
If a venture firm is disqualified as provided in this subpart, the Corporation may receive applications for a period of not less than two months at any time during the calendar year.
If a venture firm is disqualified as provided in this subpart, the Corporation mayreceive applications for a period of not less than two months at any time during the calendar year.
143B-437.87remains classified as a qualified business and may receive follow-on investments from a venture firm or theFund as provided in this subsection.
143B-437.87remains classified as a qualified business and may receive follow-on investments from a venture firm or theFundas provided in this subsection.
– Not later than March 31 of each year, a venture firm participating in the Program shall report to the Corporation on (i) the amount of funds from the Fund remaining uninvested at the end of the preceding calendar year, (ii) all qualified investments made during the preceding calendar year, including the number of employees of each business at the time the qualified investment was made and as of December 31 of that year, (iii) for any qualified DRS15255-MC-59 Page 9 General Assembly Of North Carolina Session 2021 investment in which the venture firm no longer has a position as of the end of the calendar year, the number of employees of the business as of the date the investment was terminated, and (iv) any other information the Corporation requires to ascertain the impact of the Program on the economy of the State.
– Not later than March 31 of each year, a venture firm participating in the Program shall report to the Corporation on (i) the amount of funds from the Fund remaining uninvested at the end of the preceding calendar year, (ii) all qualified investments made during the preceding calendar year, including the number of employees of each business at the time the qualified investment was made and as of December 31 of that year, (iii) for any qualified Senate Bill 649-First Edition Page 9 General Assembly Of North Carolina Session 2021 investment in which the venture firm no longer has a position as of the end of the calendar year, the number of employees of the business as of the date the investment was terminated, and (iv) any other information the Corporation requires to ascertain the impact of the Program on the economy of the State.
– Investment returns resulting from the qualified investments made under the Program by the Fund established in G.S.
– Investment returns resulting from the qualified investments made under the Program bythe Fund established in G.S.
– The Corporation shall submit an annual report on tax credits generated under this subpart to the Revenue Laws Study Committee, the House Appropriations Committee, the Senate Appropriations/Base Budget Committee, and the Fiscal Research Division of the General Assembly.
– The Corporation shall submit an annual report on tax credits generated under this subpart to the Revenue Laws StudyCommittee, the House Appropriations Committee, the Senate Appropriations/Base Budget Committee, and the Fiscal Research Division of the General Assembly.
The report required by this subsection shall be published on the Corporation's website in a publicly available format with any proprietary or confidential information redacted.
The report required bythis subsection shall be published on the Corporation's website in a publicly available format with any proprietary or confidential information redacted.
(1) With respect to each venture firm that received funds from the Fund, (i) the name and address of the venture firm, (ii) the names of individuals making decisions on behalf of the venture firm to make qualified investments under the Program, (iii) the amount of funds from the Fund received during the previous fiscal year, (iv) the cumulative amount of funds from the Fund received, (v) the amount of funds from the Fund remaining uninvested at the Page 10 DRS15255-MC-59 General Assembly Of North Carolina Session 2021 end of the previous fiscal year, (vi) the names and locations of qualified businesses receiving funds from the Fund and the amount of each qualified investment, (vii) for the previous fiscal year, the aggregate fair market value of all qualified investments as calculated according to generally accepted accounting principles, and (viii) the amount of any qualified distribution or nonqualified distribution taken during the previous fiscal year, including any management fee.
(1) With respect to each venture firm that received funds from the Fund, (i) the name and address of the venture firm, (ii) the names of individuals making decisions on behalf of the venture firm to make qualified investments under the Program, (iii) the amount of funds from the Fund received during the previous fiscal year, (iv) the cumulative amount of funds from the Fund received, (v) the amount of funds from the Fund remaining uninvested at the Page 10 Senate Bill 649-First Edition General Assembly Of North Carolina Session 2021 end of the previous fiscal year, (vi) the names and locations of qualified businesses receiving funds from the Fund and the amount of each qualified investment, (vii) for the previous fiscal year, the aggregate fair market value of all qualified investments as calculated according to generally accepted accounting principles, and (viii) the amount of any qualified distribution or nonqualified distribution taken during the previous fiscal year, including any management fee.
(3) For the previous fiscal year, with respect to each qualified business in which venture firms or the Startup Capital Enterprise Fund have invested, (i) the classification of the qualified business according to the industrial sector and the size of the business, (ii) the total number of jobs created in the State by the investment and the average wages paid for the jobs, and (iii) the total number ofjobs retained in theStateas aresult oftheinvestment andtheaveragewages paid for the jobs." SECTION 2.
(3) For the previous fiscal year, with respect to each qualified business in which venture firms or the Startup Capital Enterprise Fund have invested, (i) the classification of the qualified business according to the industrial sector and the size of the business, (ii) the total number of jobs created in the State bythe investment and the average wages paid for the jobs, and (iii) the total number ofjobs retained in theStateas aresult oftheinvestment andtheaveragewages paid for the jobs." SECTION 2.
It is the intent of the General Assembly to use American Rescue Plan Act of 2021 funds to fund the Technology Development Investment Program created pursuant to this act.
It is the intent of the General Assembly to use American Rescue Plan Act of 2021 funds to fund the TechnologyDevelopment Investment Program created pursuant to this act.
DRS15255-MC-59 Page 11
Senate Bill 649-First Edition Page 11
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Action History

  1. Passed 1st Reading

  2. Ref To Com On Rules and Operations of the Senate

  3. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 2 co-sponsors · 175 not signed on

Sponsors (2)

Co-sponsors (2)

Not signed on (175)

175 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation finance education technology
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 649?
SB 649 is sponsored by Newton, deViere, Natalie S. Murdock (Democratic), and DeAndrea Salvador (Democratic).
What is the current status of SB 649?
This bill died with 2021-2022 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 649?
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