AB705: Bill Text

AB705,6,21 1. The amount of economic impact the applicant, if successful, will have in this state.

AB705,6,22 2. The quality of any businesses assisting the applicant.

AB705,6,23 3. The level of need demonstrated by the applicant.

AB705,6,24 4. The applicant's record of obtaining early stage financing in the past.

AB705,7,3 (b) Matching grants and loans. In determining the amount of a grant or loan under sub. (2) (b), the department shall consider all of the following criteria, in addition to any other information the department considers relevant:

AB705,7,4 1. The viability of the applicant's business.

AB705,7,5 2. The likelihood that the applicant will successfully commercialize technology.

AB705,7,6 3. The applicant's management plan and management team.

AB705,7,8 4. The amount of economic impact the applicant, if successful, will have in this state.

AB705,7,9 5. The applicant's record of obtaining early stage financing in the past.

AB705,7,11 (4) Limitations on grant and loan amounts. (a) Early stage planning grants and loans. A grant or loan under sub. (2) (a) may not exceed $15,000.

AB705,7,13 (b) Matching grants and loans. A grant or loan under sub. (2) (b) may not exceed 20 percent of the project costs or $250,000, whichever is less.

AB705,7,15 (c) Bridge grants and loans. A grant or loan under sub. (2) (c) may not exceed 75 percent of the project costs or $100,000, whichever is less.

AB705,7,17 (d) Venture capital grants and loans. A grant or loan under sub. (2) (d) may not exceed 50 percent of the project costs or $250,000, whichever is less.

AB705,7,19 (e) Entrepreneurial and technology transfer grants. The total amount of grants under sub. (2) (e) may not exceed $500,000 in any fiscal year.

AB705,7,21 (5) Eligibility. The department may make a grant or loan under sub. (2) (a) to (d) to an applicant only if all of the following apply:

AB705,7,22 (a) The applicant:

AB705,8,3 1. Is a small business, or individual entrepreneur who intends to form a small business, that is completing a grant application to be submitted to the federal government for the purpose of obtaining early stage research and development funding, except that if the application is for a grant under sub. (2) (b), the requirement that the applicant be completing a federal grant application does not apply; or

AB705,8,7 2. Is an individual who is starting or developing a business which has significant growth potential, as evidenced by the potential to attract and receive early stage financing from 3rd parties, but who needs assistance with a specific facet of starting or developing the business.

AB705,8,10 (b) If the applicant seeks a grant or loan under sub. (2) (a), the applicant has sufficient funding from sources other than the state to finance at least 25% of the project costs.

AB705,8,11 (c) The applicant has or will have a business location in this state.

AB705,8,13 (d) If the application relates to a product, the product will be manufactured substantially in this state.

AB705,8,15 (e) If the application relates to a service, the principal place of business from which the service will be sold will be located in this state.

AB705,8,16 (f) All grant moneys will be spent in this state.

AB705,8,21 (6) Grant and loan distribution plan. No later than December 1 of each even-numbered year, the department shall develop a biennial plan for awarding grants and loans under sub. (2) and shall submit the plan to the governor and to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3).

AB705,8,24 (7) Administration. (a) In-kind grants of services. The department may contract with, and pay the proceeds of any grant under sub. (2) (a) to (d) directly to, any person who provides services which the grant is intended to fund.

AB705,9,3 (b) Rules. The department shall promulgate rules to administer this section. The rules shall establish application, reporting, auditing, and monitoring requirements.

AB705, s. 5 Section 5. Nonstatutory provisions.

AB705,9,5 (1) Rules.

AB705,9,14 (a) Emergency rules. Using the procedure under section 227.24 of the statutes, the department of commerce may promulgate rules required under section 560.275 of the statutes, as created by this act, for the period before the effective date of the rules submitted under paragraph (b ), but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b), and (3) of the statutes, the department is not required to provide evidence that promulgating a rule under this paragraph as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this paragraph.

AB705,9,18 (b) Permanent rules. The department of commerce shall submit in proposed form the rules required under section 560.275 of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 4th month beginning after the effective date of this paragraph.

AB705, s. 6 Section 6. Appropriation changes.

AB705,9,25 (1) Authorized positions and promotional activities. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of commerce under section 20.143 (1) (a) of the statutes, as affected by the acts of 2003, the dollar amount is increased by $100,000 for fiscal year 2003-04 and the dollar amount is increased by $200,000 for fiscal year 2004-05 to increase the authorized FTE positions for the department by 2.0 GPR positions for the administration of section 560.275 of the statutes, as created by this act, and to provide funding for educational publications and instruction provided by the department to promote the technology commercialization grant and loan program.

AB705,10,4 (End)