LRBs0275/2
MPG/ARG/JK:cjs/wlj/kjf:rs
2011 - 2012 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO 2011 SENATE BILL 508
March 8, 2012 - Offered by Senators Wanggaard, Taylor, Holperin, Risser, Wirch
and Schultz.
SB508-SSA1,1,8 1An Act to amend 15.07 (4), 20.536 (1) (k) and 25.14 (1) (a) (intro.); and to create
215.07 (1) (a) 7., 15.07 (5) (am), 15.77, 19.42 (10) (Lm), 19.42 (13) (km), 20.195,
325.17 (72), 25.17 (73), 25.90, 73.17, 230.08 (2) (yo) and chapter 555 of the
4statutes; relating to: creation of the Wisconsin Next Generation Reserve
5Board and Wisconsin next generation reserve fund, authorizing the State of
6Wisconsin Investment Board to provide certain advice, services, and facilities
7to state agencies and others, requiring the exercise of rule-making authority,
8and making appropriations.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB508-SSA1, s. 1 9Section 1. 15.07 (1) (a) 7. of the statutes is created to read:
SB508-SSA1,1,1110 15.07 (1) (a) 7. The members of the Wisconsin next generation reserve board
11appointed under s. 15.77 (1) (h) to (j) shall be appointed as provided in that section.
SB508-SSA1, s. 2
1Section 2. 15.07 (4) of the statutes, as affected by 2011 Wisconsin Act 10, is
2amended to read:
SB508-SSA1,2,93 15.07 (4) Quorum. A majority of the membership of a board constitutes a
4quorum to do business and, unless a more restrictive provision is adopted by the
5board, a majority of a quorum may act in any matter within the jurisdiction of the
6board. This subsection does not apply to actions of the government accountability
7board or the school district boundary appeal board as provided in ss. 5.05 (1e) and
8117.05 (2) (a) or the Wisconsin next generation reserve board as provided in s. 15.77
9(3)
.
SB508-SSA1, s. 3 10Section 3. 15.07 (5) (am) of the statutes is created to read:
SB508-SSA1,2,1211 15.07 (5) (am) Members of the Wisconsin next generation reserve board, $50
12per day.
SB508-SSA1, s. 4 13Section 4. 15.77 of the statutes is created to read:
SB508-SSA1,2,16 1415.77 Wisconsin next generation reserve board; creation. (1) There is
15created a Wisconsin next generation reserve board. The board shall consist of the
16following members:
SB508-SSA1,2,1817 (a) One member who has expertise in agriculture and is recognized for
18outstanding knowledge and leadership in bioscience or bioscience research.
SB508-SSA1,2,2219 (b) Two members who, at the time of appointment, serve in senior management
20positions at bioscience companies headquartered in this state that employ fewer
21than 50 employees, including any affiliate, and who, in addition to any other
22responsibilities, have responsibilities related to the financing of the companies.
SB508-SSA1,3,223 (c) One member who, at the time of appointment, serves in a senior
24management position at a bioscience company headquartered in this state that

1employs at least 50 employees, including any affiliate, and who, in addition to any
2other responsibilities, has responsibilities related to the financing of the company.
SB508-SSA1,3,73 (d) One member who, at the time of appointment, serves in a senior
4management position at a company headquartered in this state that develops or
5manufactures medical devices and employs fewer than 50 employees, including any
6affiliate, and who, in addition to any other responsibilities, has responsibilities
7related to the financing of the company.
SB508-SSA1,3,128 (e) One member who, at the time of appointment, serves in a senior
9management position at a company headquartered in this state that develops or
10manufactures medical devices and employs at least 50 employees, including any
11affiliate, and who, in addition to any other responsibilities, has responsibilities
12related to the financing of the company.
SB508-SSA1,3,1613 (f) One member who, at the time of appointment, either has at least 5 years of
14experience directly investing in bioscience companies in this state, or represents a
15group of individual investors that has at least 5 years of experience directly investing
16in bioscience companies in this state.
SB508-SSA1,3,1817 (g) One member who, at the time of appointment, has at least 3 years of
18experience in the merger and acquisition of bioscience companies.
SB508-SSA1,3,1919 (h) One member appointed by BioForward, Inc.
SB508-SSA1,3,2220 (i) One member who has expertise in bioscience or bioscience research, who
21shall be appointed by the Board of Regents of the University of Wisconsin System and
22who shall serve as a nonvoting member at the pleasure of the Board of Regents.
SB508-SSA1,4,223 (j) One member who has expertise in bioscience or bioscience research, who
24shall be appointed by the Wisconsin Association of Independent Colleges and

1Universities and who shall serve as a nonvoting member at the pleasure of the
2association.
SB508-SSA1,4,43 (k) The executive director of the investment board, or his or her designee, who
4shall serve as a nonvoting member.
SB508-SSA1,4,6 5(2) The members of the board identified in sub. (1) (a) to (h) shall be appointed
6for 4-year terms.
SB508-SSA1,4,9 7(3) A majority of the voting members of the board constitutes a quorum for the
8purpose of conducting its business and exercising its powers and for all other
9purposes. Action may be taken by the board upon a vote of a majority of a quorum.
SB508-SSA1, s. 5 10Section 5. 19.42 (10) (Lm) of the statutes is created to read:
SB508-SSA1,4,1511 19.42 (10) (Lm) The members of the Wisconsin next generation reserve board
12who are appointed by BioForward, Inc., by the Board of Regents of the University of
13Wisconsin System, and by the Wisconsin Association of Independent Colleges and
14Universities and the executive director of the Wisconsin next generation reserve
15board.
SB508-SSA1, s. 6 16Section 6. 19.42 (13) (km) of the statutes is created to read:
SB508-SSA1,4,2117 19.42 (13) (km) The members of the Wisconsin next generation reserve board
18who are appointed by BioForward, Inc., by the Board of Regents of the University of
19Wisconsin System, and by the Wisconsin Association of Independent Colleges and
20Universities and the executive director of the Wisconsin next generation reserve
21board.
SB508-SSA1, s. 7 22Section 7. 20.195 of the statutes is created to read:
SB508-SSA1,4,24 2320.195 Wisconsin next generation reserve board. There is appropriated
24to the Wisconsin next generation reserve board for the following program:
SB508-SSA1,5,7
1(1) Assistance to certified bioscience companies. (q) General program
2operations and loans, grants, and investments.
From the Wisconsin next generation
3reserve fund, a sum sufficient to make loans and provide grants to, and make
4investments in, certified bioscience companies as provided in ch. 555 and for general
5program operations and administrative expenses. Not more than the following
6amounts may be expended under this paragraph for general program operations and
7administrative expenses:
SB508-SSA1,5,98 1. In fiscal year 2013-14, 5 percent of the moneys in the Wisconsin next
9generation reserve fund.
SB508-SSA1,5,1110 2. In fiscal year 2014-15, 5 percent of the moneys in the Wisconsin next
11generation reserve fund.
SB508-SSA1,5,1312 3. In fiscal year 2015-16, 2 percent of the moneys in the Wisconsin next
13generation reserve fund.
SB508-SSA1,5,1514 4. In fiscal year 2016-17 and in each fiscal year thereafter, 0.5 percent of the
15moneys in the Wisconsin next generation reserve fund.
SB508-SSA1,5,1816 (r) Additional operational or administrative expenses. From the Wisconsin
17next generation reserve fund, a sum sufficient equal to any amount authorized under
18s. 555.06 for general program operations and administrative expenses.
SB508-SSA1, s. 8 19Section 8. 20.536 (1) (k) of the statutes is amended to read:
SB508-SSA1,5,2320 20.536 (1) (k) General program operations. All moneys received from
21assessments made under s. 25.187 (2) and, from charges made under s. 25.17 (9), and
22from assessments or charges made under s. 25.17 (72) or (73),
for the purpose of
23conducting general program operations.
SB508-SSA1, s. 9 24Section 9. 25.14 (1) (a) (intro.) of the statutes is amended to read:
SB508-SSA1,6,5
125.14 (1) (a) (intro.) There is created a state investment fund under the
2jurisdiction and management of the board to be operated as an investment trust for
3the purpose of managing the securities of all funds that are required by law to be
4invested in the state investment fund, the Wisconsin next generation reserve fund,
5and all of the state's funds specified in s. 25.17 (1), except all of the following:
SB508-SSA1, s. 10 6Section 10. 25.17 (72) of the statutes is created to read:
SB508-SSA1,6,207 25.17 (72) Have authority to provide advice and services requested by a state
8agency, as defined in s. 20.001 (1), or authority, as defined in s. 16.417 (1) (b), or
9business entity owned or controlled by a state agency or authority, relating to
10managing or administering money and property controlled by the agency, authority,
11or business entity for any purpose, including economic development in this state.
12The scope of any advice or services provided to a state agency, authority, or business
13entity under this subsection shall be defined by agreement between the board and
14the agency, authority, or business entity. This agreement shall require the cost of any
15advice or services provided by the board to be paid by the agency, authority, or
16business entity and the agreement may authorize the board to make assessments
17against the money and property controlled by the agency, authority, or business
18entity or to charge the agency, authority, or business entity for the cost of any advice
19or services provided. All moneys received by the board under this subsection shall
20be credited to the appropriation account under s. 20.536 (1) (k).
SB508-SSA1, s. 11 21Section 11. 25.17 (73) of the statutes is created to read:
SB508-SSA1,7,322 25.17 (73) Have authority to provide facilities to any state agency, as defined
23in s. 20.001 (1), or authority, as defined in s. 16.417 (1) (b), or business entity owned
24or controlled by a state agency or authority, in accordance with any agreement
25between the board and the agency, authority, or business entity. This agreement

1shall require the cost of facilities provided by the board to be paid by the agency,
2authority, or business entity. All moneys received by the board under this subsection
3shall be credited to the appropriation account under s. 20.536 (1) (k).
SB508-SSA1, s. 12 4Section 12. 25.90 of the statutes is created to read:
SB508-SSA1,7,10 525.90 Wisconsin next generation reserve fund. There is established a
6separate nonlapsible trust fund designated as the Wisconsin next generation reserve
7fund. The fund shall consist of all moneys deposited in the fund under ss. 73.17,
8555.02 (2) (c) and 555.03 (3), together with all donations, gifts, or bequests made to
9the fund, all moneys transferred to the fund from other funds, and all income or
10interest earned by the fund.
SB508-SSA1, s. 13 11Section 13. 73.17 of the statutes is created to read:
SB508-SSA1,7,18 1273.17 Wisconsin next generation reserve fund. (1) In this section,
13"qualifying company" means a person whose principal business activity code in the
14North American Industry Classification System, 2007 edition, published by the
15federal office of management and budget, is one of the following: 311221, 311222,
16311223, 325193, 325199, 325221, 325311, 325312, 325314, 325320, 325411, 325412,
17325413, 325414, 334510, 334516, 334517, 339112, 339113, 339114, 339115, 339116,
18541380, 541711, 541712, 621491, 621493, 621511, 621512, or 622110.
SB508-SSA1,7,21 19(2) (a) In July 2012, the department of revenue shall determine the total
20amount of withholding taxes due and payable under subch. X of ch. 71 from
21qualifying companies for calendar year 2011.
SB508-SSA1,8,222 (b) Subject to par. (d), on July 1, 2013, and on each July 1 thereafter, ending on
23July 1, 2027, the department of revenue shall deposit into the Wisconsin next
24generation reserve fund an amount equal to 95 percent of the amount of withholding

1taxes due and payable under subch. X of ch. 71 from qualifying companies in the
2previous calendar year that exceeds the amount determined under par. (a).
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.
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