Section 20D-102 - Certification of qualified small businesses(a) Businesses may apply to the Director for certification as a qualified small business for a calendar year. (1) The application must be in the form and be made under the procedures specified by the Director, accompanied by an application fee established by the Director, not to exceed $500.(2) Application fees must be deposited in the Angel Investor Job Creation and Innovation Act Administration Fund.(3) The application for certification for calendar year 2019 must be made available on the Division's web site by November 1, 2018. The application for certification for subsequent calendar years must be made available on the Division's web site by November 1 of the preceding calendar year.(b)(1) Within 30 days of receiving an application for certification under this section, the Director must do one of the following:a. Certify the business as satisfying the conditions required of a qualified small business.b. Request additional information from the business.c. Reject the application for certification.(2) If the Director requests additional information from the business, the Director must either certify the business or reject the application within 30 days of receiving the additional information.(3) If the Director neither certifies the business nor rejects the application within 30 days of receiving the original application or within 30 days of receiving the additional information requested, whichever is later, then the application is deemed rejected, and the Director must refund the application fee.(4) A business that applies for certification and is rejected may reapply.(c) To receive certification under this section, a business must meet all of the following conditions: (1) Be a legal entity qualified to do business in this State that has its headquarters in this State.(2) Have at least 51% of its common law employees be employed in this State and 51% of its total compensation paid be compensation for work provided in this State.(3) Be engaged in, or be committed to engage in, innovation in this State in one of the following as its primary business activity:a. Using proprietary technology to add value to a product, process, or service in a qualified high-technology field.b. Researching, developing, or producing a proprietary product, process, or service in a qualified high-technology field.c. Researching, developing, or producing a proprietary product, process, service, or technology in or for use in the fields of agriculture, manufacturing, environmental science, or transportation.(4) Other than the activities specifically listed in paragraph (c)(3) of this section, not be engaged in real estate development, insurance, lobbying, political consulting, wholesale or retail trade, leisure, hospitality, construction, or professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants.(5) Have fewer than 25 employees.(6) Has not been in operation for more than one of the following:b. Twenty years, if the business is engaged in the research, development, or production of medical devices or pharmaceuticals for which United States Food and Drug Administration approval is required for use in the treatment or diagnosis of a disease or condition.(7) Has not previously received private equity investments of more than $4,000,000.(8) Has not issued securities that are traded on a public exchange.(9) Any other condition the Director establishes by regulation.(d) In applying the condition under paragraph (c)(5) of this section, the employees in all members of the affiliated group must be included.(e) In order for a qualified investment in a business to be eligible for tax credits, all of the following must apply: (1) The business must be certified under this section for the calendar year in which the investment was made before the date on which the qualified investment was made.(2) The business must not have ever issued securities that are traded on a public exchange.(3) The business must not issue securities that are traded on a public exchange within 180 days after the date on which the qualified investment was made.(4) The business must not have a liquidation event within 180 days after the date on which the qualified investment was made.(5) The business must use qualified investments for qualified expenditures.(f) The Director must maintain a list of businesses certified under this chapter for the calendar year and must make the list accessible to the public on the Division's web site.Added by Laws 2017, ch. 244,s 3, eff. 5/24/2018.