90-10-202. Duties of board -- appointment or termination of designated investor group -- investment plan -- rulemaking. (1) The board may hire and fire staff, engage consultants, expend funds, enter into contracts, or terminate contracts.
     (2) (a) The board shall solicit investment plans from investor groups for the raising and investing of equity capital and near-equity capital pursuant to this chapter. An investment plan must address:
     (i) the applicant's philosophy and process;
     (ii) evidence of probable success in building equity capital;
     (iii) past experience and expertise in the design, implementation, and management of venture capital investment programs or in capital formation;
     (iv) a plan for achieving the purposes of 90-10-102; and
     (v) a plan for achieving Montana investment as described in 90-10-305(2).
     (b) The board shall select, certify as the designated investor group, and contract with the one investor group considered best qualified to:
     (i) organize, capitalize, manage, and direct the Montana equity fund and the Montana evergreen fund as provided for in 90-10-305; and
     (ii) make investments in private seed and venture capital partnerships or entities based on the investment plan provided for in subsection (2)(a).
     (c) The designated investor group shall maintain an office in Montana.
     (3) The board shall approve the timing of the initial sale of certificates and the implementation of the investment plan provided for in subsection (2) and may terminate the contract of the designated investor group for lack of compliance with the contract, including but not limited to the specifications for Montana investments referred to in 90-10-305(2).
     (4) The board shall approve the designated investor group's scheduled return of capital and rate of return on capital to the certificate holder. The scheduled rate of return may not exceed the sum of 400 basis points and the return on a U.S. treasury obligation that has a maturity similar to the investment being made by the certificate holder, plus actual tax and other expenses. These rates, whether fixed rates or variable rates, must be reasonable and prudent, based on competitive market rates.
     (5) The board, through one of its members, shall, once each calendar quarter while the legislature is not in session, report to the economic affairs interim committee on the board's progress in implementing this chapter and the board's success in achieving the purpose of this chapter.
     (6) The board may adopt rules to implement this chapter.

     History: En. Sec. 5, Ch. 537, L. 2005.