135.520. Annual review by division of finance, report of findings--decertification, grounds, notice of noncompliance--notice of decertification, decertification.
Annual review by division of finance, report offindings--decertification, grounds, notice ofnoncompliance--notice of decertification, decertification.
135.520. 1. The division of finance shall conduct an annual reviewof each Missouri certified capital company and any qualified investingentities designated by it to determine if the Missouri certified capitalcompany is abiding by the requirements of certifications, to advise theMissouri certified capital company as to the certification status of itsqualified investments and to ensure that no investment has been made inviolation of sections 135.500 to 135.529. The cost of the annual reviewshall be paid by each Missouri certified capital company according to areasonable fee schedule adopted by the department. The division of financeshall report its findings to the department as soon as practicablefollowing completion of the audit.
2. Any material violation of sections 135.500 to 135.529 shall begrounds for decertification under this section. If the departmentdetermines that a company is not in compliance with any requirements forcontinuing in certification, it shall, by written notice, inform theofficers of the company and the board of directors, managers, trustees orgeneral partners that they may be decertified in one hundred twenty daysfrom the date of mailing of the notice, unless they correct thedeficiencies and are again in compliance with the requirements forcertification.
3. At the end of the one hundred twenty-day grace period, if theMissouri certified capital company is still not in compliance, thedepartment may send a notice of decertification to the company and to thedirectors of the department of revenue and department of insurance,financial institutions and professional registration. Decertification of aMissouri certified capital company prior to the certified capital companymeeting all requirements of subdivisions (1) to (3) of subsection 1 ofsection 135.516 shall cause the recapture of all premium tax creditspreviously claimed by an investor and the forfeiture of all future creditsto be claimed by an investor with respect to its investment in thecertified capital company. Decertification of a Missouri certified capitalcompany after it has met all requirements of subdivisions (1) to (3) ofsubsection 1 of section 135.516 shall cause the forfeiture of premium taxcredits for the taxable year of the investor in which the decertificationarose and for future taxable years with no recapture of tax creditsobtained by an investor with respect to the investor's tax years whichended before the decertification occurred. Once a certified capitalcompany has made cumulative qualified investments, including those madethrough a qualified investing entity and deemed to have been made by thecertified capital company, in an amount equal to at least one hundredpercent of its certified capital, all future premium tax credits to beclaimed by investors with respect to said certified capital companypursuant to sections 135.500 to 135.529 shall be nonforfeitable. Once acertified capital company has made cumulative qualified investments,including those made through a qualified investing entity and deemed tohave been made by the certified capital company, in an amount equal to atleast one hundred percent of its certified capital and has met all otherrequirements under sections 135.500 to 135.529, it shall no longer besubject to regulation by the department except with respect to the paymentof distributions to the Missouri development finance board.
(L. 1996 H.B. 1237, A.L. 2003 H.B. 289, A.L. 2008 S.B. 788)