D.C. Mun. Regs. tit. 26, r. 26-A5614

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 26-A5614 - ECONOMIC IMPACT STUDY AND ANNUAL REVIEW

5614.1

The Commissioner shall conduct an annual economic impact study of the certified capital companies to determine their economic impact on the District's economy beginning with the year ending December 31, 2009 through December 31, 2014.

5614.2

The Commissioner shall conduct an annual review of each certified capital company to determine if the certified capital company is in compliance with the requirements for initial and continuing certification, and to determine the eligibility status of its initial and follow-on investments. The Commissioner need not re-examine a certified capital company or any of its qualified investments to determine compliance with the Act, if the Commissioner has determined during a prior annual review that the initial certification of the certified investment company, or any of its certified investments, were made in compliance with the Act.

5614.3

The Commissioner may retain consultants, lawyers, economists or other experts to perform the economic studies and annual reviews. The costs of these experts shall be borne by the certified capital companies.

5614.4

The Commissioner may, at his or her discretion, select a single qualified firm to conduct one (1) or more of the annual economic impact studies and the annual reviews.

5614.5

A certified capital company shall provide the Commissioner with the following information for each of its qualified investments within thirty (30) days of his or her request:

(a) The name, job title, home and work addresses, and dates of employment for each employee that worked for the qualified business during the period covered by the economic study;

(b) Payroll records showing salaries or wages paid, and taxes withheld for each employee of the qualified business during the period covered by the economic study;

(c) Copies of all District tax returns filed by the qualified business during the period covered by the economic study;

(d) Financial statements for the year being studied by the Commissioner, and the year immediately preceding; and

(e) Evidence of payments made by each qualified business to significant suppliers, vendors, contractors, landlords, and professional service firms, which may include accounting, legal, financial, information technology, architectural and engineering services, among others.

5614.6

The Commissioner may request any additional information from a certified capital company that will assist the Commissioner in his or her efforts to determine the economic impact of the District's certified capital company program.

5614.7

A certified capital company shall provide the Commissioner with the following information for each loan or investment as part of the annual review process:

(a) A list of loans or investments, and the names and addresses of the businesses that received funding during the period under review;

(b) A complete set of transaction documents, including but not limited to, the term sheet, note, shareholders agreement, purchase agreement, and proof of transfer of funds;

(c) The qualified business application and all attachments thereto, business plan, payroll report, W-4s, government-issued identification cards, proofs of District residency, and a list of names and addresses of each employee employed by the business at the time of funding, articles of incorporation or organization, lease or other evidence showing the business' principal place of business in the District, an affidavit certifying the business' inability to obtain conventional financing, and a letter from a commercial lender denying the business' application for conventional financing;

(d) All documents demonstrating that any waivers granted by the Commissioner have been satisfied;

(e) All documents demonstrating that a business determined to be a qualified business continued to satisfy that requirement for the six (6)-month period following the qualified investment;

(f) All information related to the initial certification and funding of the certified capital company;

(g) The certified capital company's audited financial statements and agreed-upon procedures report prepared by the certified capital company's independent auditor;

(h) Proof of payment of the annual certification fee; and

(i) Premium tax credit transfer affidavits and certified investors' annual notice of tax credit transfers.

5614.8

A certified capital company shall require each qualified business that it funded to provide it with copies of all records required in this section at the time of the certified capital company's initial or follow-on investment, and such other documents as requested by Commissioner. A certified capital company shall retain copies of the records set forth in this section until the certified capital company has made cumulatively equal to one hundred percent (100%) of its certified capital.

5614.9

A certified capital company shall inform each business applying for certified capital of the business' obligation to provide information and cooperate with the annual economic impact studies and annual reviews at the time of the certified capital company's initial and follow-on investments. The certified capital company shall also make each business's cooperation with the annual economic studies and annual reviews a term and condition of receiving certified capital, including a provision that a failure to cooperate with the economic studies or annual reviews shall constitute a breach of the agreement. A certified capital company shall cooperate with the Commissioner during the annual economic study, and shall make every reasonable effort to obtain information from its qualified businesses.

5614.10

The Commissioner shall analyze the data received from the certified capital companies and determine the annual economic impact that each certified capital company has made on the District's economy, including an annual assessment of the economic impact of activities of the certified capital companies on an aggregate basis. The Commissioner may also consider general economic data, including reasonable and reliable extrapolations and assumptions, to evaluate the economic impact of the certified capital company program on the District's economy. The Commissioner shall document his or her findings in a written report to be made available to the public; provided however, that any proprietary or confidential information of a qualified business or certified capital company shall be exempted from such written report.

D.C. Mun. Regs. tit. 26, r. 26-A5614

Source: Notice of Final Rulemaking published at 58 DCR 2229, 2235 (March 11, 2011)

Authority: The Acting Commissioner of the Department of Insurance, Securities and Banking, pursuant to the authority set forth in section 10 of the Certified Capital Companies Act of 2003, effective March 10, 2004 (D.C. Law 15-87; D.C. Official Code § 31-5239 ).