AB970: Bill Text

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB970, s. 1 Section 1. 20.143 (1) (dm) of the statutes is created to read:

AB970,2,3 20.143 (1) (dm) Grant to Badger Fund. A sum sufficient not to exceed $3,000,000 for the purpose of paying the grant specified in s. 560.29 (4).

AB970, s. 2 Section 2. 71.05 (6) (b) 34. of the statutes is created to read:

AB970,2,7 71.05 (6) (b) 34. For taxable years beginning after December 31, 2003, 50 percent of any amount that is contributed to the Badger Fund corporation under s. 560.29.

AB970, s. 3 Section 3. 560.29 of the statutes is created to read:

AB970,3,1 560.29 Badger Fund. (1) In this section:

AB970,3,2 (a) "Committee" means the special committee created under sub. (2).

AB970,3,3 (b) "Corporation" means the Badger Fund.

AB970,3,8 (c) "Employer" means a person engaging in any activity, enterprise, or business in this state employing any individuals on a permanent basis. "Employer" includes the state and any office, department, independent agency, authority, institution, association, society, or other body in state government created or authorized to be created by the constitution or any law, including the legislature and the courts.

AB970,3,9 (d) "Labor organization" has the meaning given in s. 5.02 (8m).

AB970,3,11 (e) "Qualified business" means a business that satisfies all of the following requirements, as certified by the department:

AB970,3,12 1. It employs at least 51 percent of its employees in this state.

AB970,3,14 2. It submits an application to the department in the form and manner prescribed by the department.

AB970,3,15 3. It has its prinicipal place of business in this state.

AB970,3,16 4. It is an established business that needs financial investment.

AB970,3,19 5. It submits any other information, or meets any other criteria, that the department considers necessary to ensure that the business is capable of using financial investments for purposes that are consistent with this section.

AB970,3,23 (2) (a) There is created a special committee, consisting of the following members who shall be nominated by the governor, and with the advice and consent of the senate appointed, for terms ending on the day on which the committee ceases to exist:

AB970,3,24 1. Two members who represent labor organizations.

AB970,3,25 2. Two members who represent pension funds of labor organizations.

AB970,4,1 3. One member who has experience in the field of economic development.

AB970,4,2 4. Two members who represent the business or financial communities.

AB970,4,3 5. One member who has experience in the field of environmental protection.

AB970,4,4 6. One member who represents the public.

AB970,4,7 (b) The governor shall seek to appoint members from different regions of the state who have demonstrated an ability to work in a cooperative and collaborative manner with individuals of diverse interests.

AB970,4,9 (c) All members of the committee shall be residents of this state at the time of appointment and at the time of performing any duties required of the committee.

AB970,4,11 (d) Five members shall constitute a quorum for the purpose of performing any duties required of the committee.

AB970,4,13 (e) The committee may request the services of any state agency to assist the committee in performing its duties.

AB970,4,19 (f) The committee shall submit any recommendations for additional legislation to further the purposes of promoting and maintaining capital retention and economic stability in this state, business continuity, job retention and creation, and the ownership of qualified businesses by residents of this state, including employee ownership of qualified businesses, to the governor and to the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2).

AB970,4,21 (g) After the committee has organized the corporation and submitted any recommendations under par. (f), the committee ceases to exist.

AB970,5,9 (3) (a) No later than January 1, 2005, the committee shall organize a corporation under ch. 180 to be called the Badger Fund. The corporation shall make investments in qualified businesses for the purposes of earning income and promoting and maintaining capital retention and economic stability in this state, business continuity, job retention and creation, and the ownership of qualified businesses by residents of this state, including employee ownership of qualified businesses. The corporation shall give preference to qualified businesses that are seeking equity capital for expansion, modernization of equipment, or upgrading of employee skills or facing an ownership transition due to an owner who is retiring without an ownership succession plan. The corporation shall also provide investment capital and other financial assistance and services to qualified businesses to assist qualified businesses in creating, maintaining, and protecting jobs in this state.

AB970,5,11 (b) 1. The members of the committee shall become the initial members of the board of directors of the corporation.

AB970,5,17 2. Unless otherwise prohibited by law, the committee shall include in the articles of incorporation, with respect to the investment policies, asset valuations, shareholder classes and provisions, and shareholder voting rights of the corporation, investment policies, asset valuations, shareholder classes and provisions, and shareholder voting rights that are similar to those of the Crocus Investment Fund of Manitoba, Canada.

AB970,5,21 3. Any person having a financial interest in a qualified business or in an investment under this section may not be a member of the corporation's board of directors, and any member of the board of directors who acquires such an interest shall vacate his or her membership.

AB970,5,25 (4) From the appropriation under s. 20.143 (1) (dm), the department shall make a onetime grant of $3,000,000 to the corporation, if the corporation applies for the grant, for start-up capital and reasonable administrative expenses of the corporation.

AB970,6,2 (5) As a condition of receiving the grant under sub. (4), the corporation shall do all of the following:

AB970,6,4 (a) Establish investment policies and criteria with respect to all of the following:

AB970,6,5 1. The creation, retention, and protection of employment in this state.

AB970,6,7 2. Employment practices, workplace safety, environmental suitability, and other matters considered appropriate by the corporation.

AB970,6,10 (b) Invest not less than 60 percent of its investment assets in qualified businesses, either in equity interests of the qualified businesses or in debt obligations of the qualified businesses.

AB970,6,12 (c) Invest not more than 20 percent of its investment assets in any one qualified business.

AB970,6,15 (d) Use its best efforts to ensure that a majority of its investment assets directly or indirectly promote employee ownership of qualified businesses or employee participation in the governance and management of the qualified businesses.

AB970,6,17 (e) Maintain a reserve fund that contains at least 15 percent of its investment assets.

AB970,6,22 (f) Annually submit a report to the department by the end of each fiscal year of the corporation that describes the investments made by the corporation under sub. (3) in the corporation's previous fiscal year and that provides any information that the department considers necessary to review the investment program created under this section.

AB970,6,24 (g) Repay the amount of the grant to the department in the manner prescribed by the department.

AB970,7,6 (7) The assets and liabilities of the corporation shall be separate from all other assets and liabilities of the state, of all political subdivisions of the state, and of the department. Neither the state, any political subdivision of the state, nor the department guarantees any obligation of or has any obligation to the corporation. Neither the state, any political subdivision of the state, nor the department is liable for any debt or liability of the corporation.

AB970,7,7 (End)