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Volume 62, No. 15

182/2019

The British Columbia Gazette,

Part II

July 30, 2019

B.C. Reg. 182/2019 , deposited July 19, 2019, under the SMALL BUSINESS VENTURE CAPITAL ACT [section 37] and the BUDGET MEASURES IMPLEMENTATION ACT, 2019 [section 93]. Order in Council 442/2019, approved and ordered July 19, 2019.

On the recommendation of the undersigned, the Administrator, by and with the advice and consent of the Executive Council, orders that the Small Business Venture Capital Regulation, B.C. Reg. 390/98, is amended

(

a) as set out in the attached

Schedule 1,

(

b) effective February 20, 2019, as set out in the attached

Schedule 2, and

(

c) effective March 2, 2019, as set out in the attached

Schedule 3.

— C. JAMES, Minister of Finance and Deputy Premier ; C. TREVENA, Presiding Member of the Executive Council .

Schedule 1

Section 11 (1) (d) (

i) of the Small Business Venture Capital Regulation, B.C. Reg. 390/98, is amended by striking out " the Greater Vancouver Regional District " and substituting " the Metro Vancouver Regional District ".

Schedule 2

Section 1 (1) of the Small Business Venture Capital Regulation, B.C. Reg. 390/98, is amended by adding the following

definitions:

"direct sale" means a contract between a supplier and a consumer for the supply of goods or services that is entered into in person at a place other than the supplier's permanent place of business;

"scale-up activity" means an activity related to the expansion of a business, including the following activities:

(

a) customer acquisition;

(

b) brand building;

(

c) development of sales brochures, website content and other marketing collateral to promote the business's products and services; .

Section 11 is amended

(

a) in subsection (1) by adding the following paragraphs:

(

g) advanced commercialization that

(

i) involves the use of digital technology tools to assist other businesses with scale-up activities, and

(ii) is carried on by a business located in a region outside the Metro Vancouver Regional District or the Capital Regional District;

(

h) a scale-up activity

(

i) related to the expansion of a business that is or was engaged in a business activity described in paragraphs (

a) to (

g) of this subsection, and

(ii) that is carried on by that business. ,

(

b) in subsection (2) (

f) by striking out " or " at the end of subparagraph (ii), by adding " or " to the end of subparagraph (iii), and by adding the following subparagraph:

(iv) advanced commercialization referred to in subsection (1) (g), , and

(

c) by adding the following subsections:

(2.2) Despite subsection (1), advanced commercialization under subsection (1) (

g) does not include any of the following:

(

a) direct sales;

(

b) traditional advertising services such as print, radio, television, mail, email, telephone and outdoor advertising;

(

c) multi-level marketing, pyramid-selling, network marketing or other forms of referral marketing;

(

d) public relations;

(

e) business strategy, advisory or consulting services;

(

f) the operation of a call centre.

(2.3) Despite subsection (1), a scale-up activity under subsection (1) (

h) does not include an activity related to the expansion of

(

a) a small business, other than an eligible business corporation, unless

(

i) for the 2 previous years the small business has been substantially engaged in a business activity described in subsection (1) (

a) to (g), and

(ii) it is more than 2 years after the first investment in the small business under

section 10 of the Act, or

(

b) an eligible business corporation, unless

(

i) for the 2 previous years the eligible business corporation has been substantially engaged in a business activity described in subsection (1) (

a) to (g), and

(ii) it is more than 2 years after the eligible business corporation first raised additional equity capital under

Part 2 of the Act.

Section 21 (2) is amended

(

a) in paragraph (

a) by striking out "

section 11 (1) (d) " and substituting "

section 11 (1) (

d) or in

section 11 (1) (

h) that relate to the expansion of a business that is or was engaged in business activities described in

section 11 (1) (d) ",

(

b) in paragraph (

b) by striking out "

section 11 (1) (e) " and substituting "

section 11 (1) (

e) or in

section 11 (1) (

h) that relate to the expansion of a business that is or was engaged in business activities described in

section 11 (1) (e) ", and

(

c) in paragraph (

c) by striking out "

section 11 (1) (f) " and substituting "

section 11 (1) (

f) or in

section 11 (1) (

h) that relate to the expansion of a business that is or was engaged in business activities described in

section 11 (1) (f) ".

Schedule 3

Section 1 (3) of the Small Business Venture Capital Regulation, B.C. Reg. 390/98, is amended in the definition of "common interest group" by striking out " shares " and substituting " equity shares ".

Section 3.1 is amended

(

a) in paragraphs (

a) and (

b) by striking out " the share transfer is a direct share transfer " and substituting " the transfer is a direct transfer of shares or convertible rights ",

(

b) by adding the following paragraph:

(a.1) the transfer is a direct transfer of shares or convertible rights by the purchaser to the purchaser's TFSA; ,

(

c) in paragraph (

c) by striking out " the share transfer is a share transfer " and substituting " the transfer is a transfer of a share or a convertible right ",

(

d) in paragraph (

d) by adding " in the case of a share transfer, " before " the share transfer occurs ", and

(

e) in paragraph (

e) by striking out " the share transfer occurs " and substituting " the transfer occurs ".

Section 20 (

b) is amended by striking out " shares " and substituting " equity shares " wherever it appears.

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