Section 27500 - Definitions For purposes of this chapter, the following definitions apply:
(a) "Commissioner" means the Commissioner of Financial Protection and Innovation.(b) "Covered entity" means a venture capital company that meets both of the following criteria:(1) The venture capital company primarily engages in the business of investing in, or providing financing to, startup, early-stage, or emerging growth companies.(2) The venture capital company meets any of the following criteria: (A) The venture capital company is headquartered in California.(B) The venture capital company has a significant presence or operational office in California.(C) The venture capital company makes venture capital investments in businesses that are located in, or have significant operations in, California.(D) The venture capital company solicits or receives investments from a person who is a resident of California.(c) "Department" means the Department of Financial Protection and Innovation.(d) "Diverse founding team member" means a founding team member who self-identifies as a woman, nonbinary, Black, African American, Hispanic, Latino-Latina, Asian, Pacific Islander, Native American, Native Hawaiian, Alaskan Native, disabled, veteran or disabled veteran, lesbian, gay, bisexual, transgender, or queer.(e) "Founding team member" means either of the following: (1) A person who satisfies all of the following conditions: (A) The person owned initial shares or similar ownership interests of the business.(B) The person contributed to the concept of, research for, development of, or work performed by the business before initial shares were issued.(C) The person was not a passive investor in the business.(2) A person who has been designated as the chief executive officer or president.(f) "Primarily founded by diverse founding team members" means a founding team for which more than one-half of the founding team members responded to the survey described in paragraph (1) of subdivision (c) of Section 27501 and at least one-half of the founding team members are diverse founding team members.(g) "Venture capital company" has the same meaning as defined in paragraph (4) of subdivision (a) of Section 260.204.9 of Title 10 of the California Code of Regulations.(h) "Venture capital investment" has the same meaning as defined in paragraph (5) of subdivision (a) of Section 260.204.9 of Title 10 of the California Code of Regulations.Added by Stats 2024 ch 41 (SB 164),s 21, eff. 6/29/2024.