EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. The legislature hereby declares that the purpose of this act

1-7 provisions set forth as sections 3 to 11, inclusive, of this act.

1-8 Sec. 3. As used in sections 3 to 11, inclusive, of this act, unless the

1-9 context otherwise requires, the words and terms defined in sections 4 to

1-10 8, inclusive, of this act have the meanings ascribed to them in those

1-11 sections.

2-1 Sec. 4. "Corporation for public benefit" means a corporation that is

2-2 recognized as exempt pursuant to section 501(c)(3) of the Internal

2-3 Revenue Code of 1986, future amendments to that section and the

2-4 corresponding provisions of future internal revenue laws.

2-5 Sec. 5. "Department" means the department of business and

2-6 industry.

2-7 Sec. 6. "Director" means the director of the department.

2-8 Sec. 7. "Nevada business" means a business that is established and

2-9 operating, or will be established to operate, in this state.

2-10 Sec. 8. "Venture capital" means an investment in or loan made to a

2-11 Nevada business.

2-12 Sec. 9. The director shall cause to be formed in this state:

2-13 1. An independent corporation for public benefit, that shall serve as

2-14 the sole stockholder of the corporation formed pursuant to subsection 2.

2-15 2. An independent corporation for profit, the general purpose of

2-16 which is to form and act as the general partner of a limited partnership

2-17 to provide venture capital to Nevada businesses to enhance their ability to

2-18 do business in this state.

2-19 Sec. 10. 1. Upon application by the director, the state board of

2-20 finance shall issue general obligation bonds of the State of Nevada to

2-21 carry out the provisions of subsection 2. The aggregate amount of all

2-22 outstanding bonds issued pursuant to this section must not exceed

2-23 $20,000,000. The provisions of the State Securities Law apply to the

2-24 issuance of bonds pursuant to this section.

2-25 2. The expenses related to the issuance of bonds pursuant to this

2-26 section must be paid from the proceeds of the bonds. The director shall

2-27 use the remaining proceeds to loan money to the corporation for public

2-28 benefit created pursuant to subsection 1 of section 9 of this act, pursuant

2-29 to a loan agreement that:

2-30 (a) Requires the corporation for public benefit to use the money to

2-31 provide, through the limited partnership formed by the corporation

2-32 created pursuant to subsection 2 of section 9 of this act, venture capital to

2-33 Nevada businesses to enhance their ability to do business in this state;

2-34 (b) Requires the creation of an escrow for a portion of the loan in an

2-35 account for the benefit of the department that, when the money in the

2-36 escrow is invested for a period of not more than 15 years, will have a

2-37 value equal to or greater than the principal amount of the loan; and

2-38 (c) Provides a rate of interest on the loan in an amount established by

2-39 the director. The director shall establish a rate of interest in an amount

2-40 that, together with any other interest, penalties and other payments

2-41 received from the proceeds of the bonds issued pursuant to this section,

2-42 will be sufficient to pay the interest on the bonds.

3-1 Sec. 11. The director, in consultation with the commission on

3-2 economic development shall:

3-3 1. Adopt such regulations as he deems necessary to carry out the

3-4 provisions of sections 3 to 11, inclusive, of this act, including, without

3-5 limitation, the performance of such audits and the submission of such

3-6 reports as he deems appropriate to ensure compliance with the provisions

3-7 of sections 3 to 11, of this act and the regulations adopted pursuant to

3-8 this section. The regulations may include criteria for the eligibility for

3-9 and use of money loaned pursuant to subsection 2 of section 10 of this

3-10 act, but the corporation created pursuant to subsection 2 of section 9 of

3-11 this act must have sole authority for the approval of applications for and

3-12 the management of venture capital provided pursuant to sections 3 to 11,

3-13 inclusive, of this act.

3-14 2. Provide the corporation created pursuant to subsection 1 of

3-15 section 9 of this act with such assistance as is necessary to carry out the

3-16 provisions of sections 3 to 11, inclusive, of this act and comply with the

3-17 regulations adopted pursuant to this section.