620.638. Definitions.
Definitions.
620.638. As used in sections 620.635 to 620.653, the following termsmean:
(1) "Board", the Missouri seed capital investment board, asestablished pursuant to section 620.641;
(2) "Committed contributions", the total amount of qualifiedcontributions that are committed to a qualifying fund by contractualagreement;
(3) "Corporation", the Missouri technology corporation as establishedpursuant to section 348.251, RSMo;
(4) "Department", the department of economic development;
(5) "Director", the director of the department of economicdevelopment;
(6) "Follow-up capital", capital provided to a qualified business inwhich a qualified fund has previously invested seed capital or start-upcapital. No more than forty percent of the qualified contributions to aqualified fund may be used for follow-up capital, and no qualifiedcontributions which generate tax credits before the second round ofallocations as authorized by section 620.650 shall be used for follow-upcapital investments;
(7) "Person", any individual, corporation, partnership, limitedliability company or other entity, including any charitable organizationwhich is exempt from federal income tax and whose Missouri unrelatedbusiness taxable income, if any, would be subject to the state income taximposed under chapter 143, RSMo;
(8) "Positive cash flow", total cash receipts from sales or services,but not from investments or loans, exceeding total cash expenditures ascalculated on a fiscal year basis;
(9) "Qualified business", any independently owned and operatedbusiness which is headquartered and located in Missouri and which isinvolved in or intends to be involved in commerce for the purpose ofmanufacturing, processing or assembling products, conducting research anddevelopment, or providing services in interstate commerce. Such a businessshall maintain its headquarters in Missouri for a period of at least threeyears from the date of receipt of a qualified investment or be subject topenalties pursuant to section 620.017;
(10) "Qualified contribution", cash contributions to a qualified fundpursuant to the terms of contractual agreements made between the qualifiedfund and a qualified economic development organization authorized by theboard to enter into such contracts;
(11) "Qualified economic development organization", any corporationorganized pursuant to the provisions of chapter 355, RSMo, that, as ofJanuary 1, 1991, had obtained a contract with the department to operate aninnovation center to promote, assist and coordinate the research anddevelopment of new services, products or processes in this state;
(12) "Qualified fund", a fund established by any corporation,partnership, joint venture, unincorporated association, trust or otherorganization established pursuant to the laws of Missouri and approved bythe board or the corporation;
(13) "Qualified investment", any investment of seed capital, start-upcapital or follow-up capital in a qualified business that does not causemore than ten percent of all the qualified contributions to a qualifiedfund to be invested in a single qualified business;
(14) "Seed capital", capital provided to a qualified business forresearch, development and precommercialization activities to prove aconcept for a new product, process or service, and for activities relatedthereto; provided that, seed capital shall not be provided to any businesswhich in a past fiscal year has experienced a positive cash flow;
(15) "Start-up capital", capital provided to a qualified business foruse in preproduction product development, service development or initialmarketing thereof; provided that, start-up capital shall not be provided toany business which has experienced a positive cash flow in a past fiscalyear;
(16) "Uninvested capital", that portion of any qualified contributionto a qualified fund, other than management fees not to exceed three percentper year of committed contributions, qualified investments and otherexpenses or fees authorized by the board, that is not invested as aqualified investment within ten years of its receipt.
(L. 1999 S.B. 518 § 2, A.L. 2007 1st Ex. Sess. H.B. 1)Effective 11-28-07