SB508-SSA1,8,53 (c) A person who is subject to withholding taxes under subch. X of ch. 71 shall
4indicate to the department of revenue whether it is a qualifying company for
5purposes of this section in the manner determined by the department.
SB508-SSA1,8,96 (d) The department of revenue shall not deposit into the Wisconsin next
7generation reserve fund more than $15,000,000 in fiscal year 2012-13 or
8$50,000,000 in any fiscal year thereafter, and the total amount deposited may not
9exceed $350,000,000.
SB508-SSA1,8,2210 (e) After the department of revenue deposits a total of $350,000,000 into the
11fund under par. (d), and subject to the requirements of this paragraph, the
12department shall continue depositing moneys into the fund under par. (b), not to
13exceed an additional total amount of $150,000,000 in deposits. Before the
14department continues those deposits, the department shall notify the joint
15committee on finance in writing that the department intends to do so. If, within 14
16working days after the date of that notice, the cochairpersons of the committee do not
17notify the department that the committee has scheduled a meeting to review the
18continuation of deposits into the fund, the department shall continue those deposits.
19If, within 14 working days after the date of that notice, the cochairpersons of the
20committee notify the department that the committee has scheduled a meeting to
21review the department's continuation of deposits into the fund, the department may
22continue those deposits only upon approval of the committee.
SB508-SSA1, s. 14 23Section 14. 230.08 (2) (yo) of the statutes is created to read:
SB508-SSA1,8,2524 230.08 (2) (yo) The executive director and administrative assistant of the
25Wisconsin next generation reserve board.
SB508-SSA1, s. 15
1Section 15. Chapter 555 of the statutes is created to read:
SB508-SSA1,9,22 CHAPTER 555
SB508-SSA1,9,43 Wisconsin next generation
4 RESERVE board
SB508-SSA1,9,5 5555.01Definitions. In this chapter:
SB508-SSA1,9,6 6(1) "Board" means the Wisconsin next generation reserve board.
SB508-SSA1,9,8 7(2) "Certified bioscience company" means a person certified by the board under
8s. 555.03 (2).
SB508-SSA1,9,11 9(3) "Qualifying company" has the meaning given in s. 73.17 (1), except that
10"qualifying company" does not include a business that has as its principal business
11activity the operation of a hospital as defined in s. 50.33 (2).
SB508-SSA1,9,13 12(4) "Fund" means the Wisconsin next generation reserve fund established
13under s. 25.90.
SB508-SSA1,9,17 14555.02 Wisconsin next generation reserve fund. (1) Executive director.
15The board shall employ an executive director who has expertise in private equity
16investment. In reviewing candidates for executive director, the board shall consider
17all of the following:
SB508-SSA1,9,1918 (a) The extent of the candidate's experience and expertise in private equity
19investment.
SB508-SSA1,9,2120 (b) The candidate's investment experience related to start-up bioscience
21companies.
SB508-SSA1,9,2322 (c) The candidate's experience related to seed or early stage business
23investments.
SB508-SSA1,9,2424 (d) Any other criteria the board considers relevant.
SB508-SSA1,10,4
1(2) Grants, loans, and investments. (a) Subject to s. 555.055, from the
2appropriation under s. 20.195 (1) (q), the board may make a grant or loan to a
3certified bioscience company, or the board may make an investment directly in a
4certified bioscience company.
SB508-SSA1,10,85 (b) Before the board makes a grant, loan, or investment under par. (a), the
6board shall contract with the certified bioscience company. In addition to any other
7terms required or negotiated by the board, that contract shall include all of the
8following conditions:
SB508-SSA1,10,119 1. The certified bioscience company shall use a grant, loan, or investment
10provided by the board for research and development related to biotechnology or
11bioscience or bioscience research methods, as determined by the board by rule.
SB508-SSA1,10,1312 2. The certified bioscience company shall match the amount of the board's,
13grant, loan, or investment with moneys the company has raised from other sources.
SB508-SSA1,10,1614 3. Unless approved by the board, the certified bioscience company may not
15relocate its headquarters outside of this state during the term of the contract under
16this paragraph.
SB508-SSA1,10,1817 (c) Any moneys paid to the board by a certified bioscience company shall be
18deposited in the fund.
SB508-SSA1,10,2119 (d) The total value of all grants the board provides under this subsection in a
20fiscal year may not equal more than 10 percent of the total value of all grants, loans,
21and investments the board makes in that fiscal year.
SB508-SSA1,10,24 22555.03 Certified bioscience companies. (1) Application. Any person may
23apply to the board on a form prescribed by the board for certification under this
24section. The application shall include all of the following:
SB508-SSA1,10,2525 (a) The name, address, and tax identification number of the person.
SB508-SSA1,11,2
1(b) A description of the principal business activities of the person and the
2locations at which those activities are conducted.
SB508-SSA1,11,53 (c) The person's principal business activity code under the North American
4Industry Classification System, 2007 edition, published by the federal office of
5management and budget.
SB508-SSA1,11,66 (d) Any other information the board requires.
SB508-SSA1,11,10 7(2) Certification. The board may certify a person that submits an application
8under sub. (1) to be eligible to receive a grant, loan, or investment under s. 555.02
9if the board determines after conducting an investigation that the person meets all
10of the following conditions:
SB508-SSA1,11,1111 (a) The person is a qualifying company.
SB508-SSA1,11,1312 (b) The person is headquartered in, and has its principal business operations
13located in, this state.
SB508-SSA1,11,1514 (c) The person, including any affiliate, employs at least 75 percent of its
15employees in this state.
SB508-SSA1,11,1616 (d) The person is in need of capital.
SB508-SSA1,11,2017 (e) The person is developing biotechnology or bioscience or bioscience research
18methods, as determined by the board by rule and the person demonstrates to the
19board's satisfaction that the person has the potential to generate high levels of
20successful investment performance and to increase employment in this state.
SB508-SSA1,11,2121 (h) The person meets any other conditions established by the board.
SB508-SSA1,11,23 22(3) Application fee. The board may charge a fee to an applicant for certification
23under this section. The fee shall be deposited in the fund.
SB508-SSA1,12,4 24555.04 Contracting authority. Notwithstanding ss. 16.70 to 16.78, the
25board may enter into any contract with the investment board as provided in s. 25.17

1(72) and (73), including any contract relating to the furnishing of personnel or office
2space, to be paid as provided in s. 25.17 (72) and (73), may procure insurance, and
3may execute any other contract necessary or convenient to the performance of the
4board's powers and duties under this chapter.
SB508-SSA1,12,7 5555.05 Annual report. Annually, by July 1, the board shall submit to the chief
6clerk of each house of the legislature, for distribution to the legislature under s.
713.172 (2), a report that includes all of the following:
SB508-SSA1,12,8 8(1) An accounting of the revenue received in the fund under s. 73.16 (2).
SB508-SSA1,12,10 9(2) An accounting of all expenditures from the fund by the board for any
10purpose.
SB508-SSA1,12,12 11(3) For each each certified bioscience company that received a grant, loan, or
12investment from the board, all of the following:
SB508-SSA1,12,1313 (a) The name and address of the certified bioscience company.
SB508-SSA1,12,1514 (b) A description of the nature of the business conducted by the certified
15bioscience company.
SB508-SSA1,12,1616 (c) The amount of the grant, loan, or investment.
SB508-SSA1,12,1817 (d) A description of the purposes for which the certified bioscience company
18used or is using the grant, loan, or investment.
SB508-SSA1,12,2119 (e) A statement of the number of employees the certified bioscience company
20employed on January 1 of the preceding year and the number of employees the
21company employed on December 31 of that year.
SB508-SSA1,12,23 22(4) An accounting of the internal rate of return realized by the board on its total
23loans to and investments in certified bioscience companies.
SB508-SSA1,12,25 24(5) An accounting of the internal rate of return realized by the board on each
25loan to or investment in each certified bioscience company.
SB508-SSA1,13,15
1555.055 Biennial review by joint committee on finance. In each
2odd-numbered year, when the board submits its report under s. 555.05, the board
3shall submit to the joint committee on finance a copy of that report and a plan for the
4grants, loans, and investments the board intends to make under s. 555.02 (2) during
5the biennium that begins on July 1 of that year. The joint committee on finance may
6approve, disapprove, or modify and approve the board's plan. If, within 14 working
7days after the date of that submittal, the cochairpersons of the committee do not
8notify the board that the committee has scheduled a meeting to review the board's
9plan, the board may make grants, loans, and investments under s. 555.02 (2)
10consistent with the board's plan. If, within 14 working days after the date of that
11submittal, the cochairpersons of the committee notify the board that the committee
12has scheduled a meeting to review the board's plan, the board may make grants,
13loans, and investments under s. 555.02 (2) beginning on July 1 of that year only upon
14approval of the committee and subject to any modification of the committee to the
15board's plan.
SB508-SSA1,14,6 16555.06 Expenditure of fund moneys for operational or administrative
17costs.
If the board determines that the amount provided under s. 20.195 (1) (q) 1.,
182., 3., or 4. is not sufficient to cover the board's actual general program operations and
19administrative expenses for a fiscal year, the board may notify the joint committee
20on finance in writing that the board proposes to exceed that amount for those
21purposes. That notice shall state the specific amount of additional moneys from the
22fund that the board proposes to use for general program operations and
23administrative expenses and the board's reasons supporting its determination that
24its expenditure of that additional amount is necessary for those purposes. If, within
2514 working days after the date of that notice, the cochairpersons of the committee do

1not notify the board that the committee has scheduled a meeting to review the board's
2proposal, the board may expend the additional amount as proposed in the board's
3notice. If, within 14 working days after the date of that notice, the cochairpersons
4of the committee notify the board that the committee has scheduled a meeting to
5review the board's proposal, the board may expend the additional amount only upon
6approval of the committee.
SB508-SSA1, s. 16 7Section 16 . Nonstatutory provisions.
SB508-SSA1,14,98 (1) Definition. In subsections (2) and (3), "board" means the Wisconsin next
9generation reserve board.
SB508-SSA1,14,1010 (2) Initial appointments.
SB508-SSA1,14,1911 (a) Notwithstanding the requirement of advice and consent of the senate under
12section 15.07 (1) (a) of the statutes, the initial members of the board nominated by
13the governor may be provisionally appointed by the governor, subject to later senate
14confirmation. Any provisional appointment shall be in full force until withdrawn by
15the governor or acted upon by the senate, and if confirmed by the senate shall
16continue for the remainder of the unexpired term of the member and until a successor
17is appointed and qualifies. A provisional appointee may exercise all the powers and
18duties of board membership to which the person is appointed during the time in
19which the appointee qualifies.
SB508-SSA1,14,2420 (b) A provisional appointment made under paragraph (a) that is withdrawn by
21the governor shall, upon withdrawal, lapse and create a vacancy for provisional
22appointment of another initial member of the board. Any provisional appointment
23made under paragraph (a) that is rejected by the senate shall, upon rejection, lapse
24and create a vacancy for provisional appointment of another initial board member.
SB508-SSA1,15,3
1(c) Notwithstanding the lengths of terms specified in section 15.77 (2) of the
2statutes, as created by this act, the initial members of the board shall be appointed
3for the following terms:
SB508-SSA1,15,7 41. The member appointed by the governor under section 15.77 (1) (a) of the
5statutes, as created by this act, and one member appointed by the governor under
6section 15.77 (1) (b) of the statutes, as created by this act, for terms expiring on July
71, 2014.
SB508-SSA1,15,11 82. One member appointed by the governor under section 15.77 (1) (b) of the
9statutes, as created by this act, and the member appointed by the governor under
10section 15.77 (1) (c) of the statutes, as created by this act, for terms expiring on July
111, 2015.
SB508-SSA1,15,13 123. The members appointed by the governor under section 15.77 (1) (d) and (e)
13of the statutes, as created by this act, for terms expiring on July 1, 2016.
SB508-SSA1,15,17 144. The members appointed by the governor under section 15.77 (1) (f) and (g)
15of the statutes, as created by this act, and the member appointed by BioForward, Inc.,
16under section 15.77 (1) (h) of the statutes, as created by this act, for terms expiring
17on July 1, 2017.
SB508-SSA1,15,2118 (3) Position authorization. There is authorized for the board 1.0 FTE SEG
19executive director position and 1.0 FTE SEG administrative assistant position to be
20funded from the appropriation under section 20.195 (1) (q) of the statutes, as created
21by this act, or from any loan under subsection (4 ), or both.
SB508-SSA1,16,222 (4) Investment board loan. The investment board may loan money to the
23Wisconsin next generation reserve board for general program operations and
24administrative expenses of the Wisconsin next generation reserve board. All loan

1terms shall be specified by written agreement between the investment board and the
2Wisconsin next generation reserve board.
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