AB733,18,5
171.30 (12) Business seed fund designation. Subject to the limitations provided
2under subch. II of ch. 239, a financial institution, as defined in s. 239.10 (1), may,
3when submitting its estimated payments under this subchapter, designate that up
4to 80 percent of its estimated payment be deposited into the business seed fund
5created under subch. II of ch. 239.
AB733, s. 37 6Section 37. 100.45 (1) (dm) of the statutes, as affected by 2011 Wisconsin Act
710
, is amended to read:
AB733,18,178 100.45 (1) (dm) "State agency" means any office, department, agency,
9institution of higher education, association, society, or other body in state
10government created or authorized to be created by the constitution or any law which
11is entitled to expend moneys appropriated by law, including the legislature and the
12courts, the Wisconsin Housing and Economic Development Authority, the Bradley
13Center Sports and Entertainment Corporation, the University of Wisconsin
14Hospitals and Clinics Authority, the Wisconsin Health and Educational Facilities
15Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic
16Development Corporation, the Wisconsin Seed Fund Authority, and the Fox River
17Navigational System Authority.
AB733, s. 38 18Section 38. 101.177 (1) (d) of the statutes, as affected by 2011 Wisconsin Act
1910
, is amended to read:
AB733,19,520 101.177 (1) (d) "State agency" means any office, department, agency,
21institution of higher education, association, society, or other body in state
22government created or authorized to be created by the constitution or any law, that
23is entitled to expend moneys appropriated by law, including the legislature and the
24courts, the Wisconsin Housing and Economic Development Authority, the Bradley
25Center Sports and Entertainment Corporation, the University of Wisconsin

1Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin
2Economic Development Corporation, the Wisconsin Seed Fund Authority, and the
3Wisconsin Health and Educational Facilities Authority, but excluding the Health
4Insurance Risk-Sharing Plan Authority and the Lower Fox River Remediation
5Authority.
AB733, s. 39 6Section 39. 230.03 (3) of the statutes, as affected by 2011 Wisconsin Acts 10
7and 32, is amended to read:
AB733,19,178 230.03 (3) "Agency" means any board, commission, committee, council, or
9department in state government or a unit thereof created by the constitution or
10statutes if such board, commission, committee, council, department, unit, or the
11head thereof, is authorized to appoint subordinate staff by the constitution or
12statute, except the Board of Regents of the University of Wisconsin System, a
13legislative or judicial board, commission, committee, council, department, or unit
14thereof or an authority created under subch. II of ch. 114 or subch. III of ch. 149 or
15under ch. 231, 232, 233, 234, 235, 237, 238, 239, or 279. "Agency" does not mean any
16local unit of government or body within one or more local units of government that
17is created by law or by action of one or more local units of government.
AB733, s. 40 18Section 40. Chapter 239 of the statutes is created to read:
AB733,19,2119 Chapter 239
20 WISCONSIN seed fund
21 AUTHORITY
AB733,19,2322 Subchapter I
23 General provisions
AB733,19,24 24239.01 Definitions. In this chapter, except as otherwise provided:
AB733,19,25 25(1) "Authority" means the Wisconsin Seed Fund Authority.
AB733,20,1
1(2) "Board" means the board of directors of the authority.
AB733,20,4 2239.02 Creation and organization of authority. (1) There is created a
3public body corporate and politic to be known as the "Wisconsin Seed Fund
4Authority." The members of the board shall consist of the following:
AB733,20,85 (a) Four persons from the private sector, at least 3 of whom shall have at least
65 years each of seed capital, investment banking, or entrepreneurial experience,
7nominated by the governor, and with the advice and consent of the senate appointed,
8for 4-year terms.
AB733,20,119 (b) One member appointed by the speaker of the assembly for a 4-year term
10who shall have at least 5 years of seed capital, investment banking, or
11entrepreneurial experience.
AB733,20,1412 (c) One member appointed by the senate majority leader for a 4-year term who
13shall have at least 5 years of venture capital, investment banking, or entrepreneurial
14experience.
AB733,20,1615 (d) The chief executive officer of the Wisconsin Economic Development
16Corporation.
AB733,20,20 17(2) A majority of the members of the board constitutes a quorum for the purpose
18of conducting its business and exercising its powers and for all other purposes,
19notwithstanding the existence of any vacancies. Action may be taken by the board
20upon a vote of a majority of a quorum.
AB733,20,22 21(3) A vacancy on the board shall be filled in the same manner as the original
22appointment to the board for the remainder of the unexpired term, if any.
AB733,21,2 23(4) No cause of action may arise against and no civil liability may be imposed
24upon a member of the board for any act or omission in the performance of the

1member's powers and duties under this chapter, unless the person asserting liability
2proves that the act or omission constitutes willful misconduct.
AB733,21,3 3(5) Annually, the board shall elect a chairperson from among its members.
AB733,21,8 4(6) The board may hire an executive director. The board may delegate to the
5executive director or any other employee of the authority any powers or duties the
6board considers proper. All powers and duties assigned to the authority under this
7chapter shall be exercised or carried out by the board, unless the board delegates the
8power or duty to an employee of the authority.
AB733,21,12 9239.03 Powers of authority. The authority shall have all the powers
10necessary or convenient to carry out the purposes and provisions of this chapter. In
11addition to all other powers granted the authority under this chapter, the authority
12may specifically:
AB733,21,14 13(1) Adopt, amend, and repeal any bylaws, policies, and procedures for the
14regulation of its affairs and the conduct of its business.
AB733,21,15 15(2) Have a seal and alter the seal at pleasure.
AB733,21,16 16(3) Maintain an office.
AB733,21,17 17(4) Sue and be sued.
AB733,21,19 18(5) Accept gifts, grants, loans, or other contributions from private or public
19sources.
AB733,21,21 20(6) Establish the annual budget of the authority and monitor its fiscal
21management.
AB733,21,23 22(7) Execute contracts and other instruments required for the operation of the
23authority.
AB733,21,25 24(8) Employ any officers, agents, and employees that it may require and
25determine their qualifications, duties, and compensation.
AB733,22,1
1(9) Issue notes, bonds, and any other obligations.
AB733,22,2 2(10) Make loans.
AB733,22,3 3(11) Make grants.
AB733,22,4 4(12) Incur debt.
AB733,22,5 5(13) Make equity and other investments.
AB733,22,6 6(14) Procure liability insurance.
AB733,22,12 7239.04 Liability limited. Neither the state nor any political subdivision of
8the state, nor any officer, employee, or agent of the state or a political subdivision of
9the state who is acting within the scope of employment or agency, is liable for any
10debt, obligation, act, or omission of the authority. A debt of the authority is not a debt
11of the state, and the authority may not create a debt of the state. Each note, bond,
12or other obligation of the authority shall contain on its face a statement to that effect.
AB733,22,1313 subchapter II
AB733,22,1414 Business seed fund
AB733,22,15 15239.10 Definitions. In this subchapter:
AB733,22,18 16(1) "Financial institution" means a bank, a savings bank, a savings and loan
17association, a trust company, or a credit union, whether chartered under the laws of
18this state, another state or territory, or under the laws of the United States.
AB733,22,19 19(2) "Fund" means the business seed fund.
AB733,22,20 20(3) "Fund capital" means moneys in or received from the fund.
AB733,22,22 21(4) "Participant financial institution" means a financial institution that makes
22a contribution to the fund under s. 71.10 (5w) or 71.30 (12).
AB733,22,25 23239.11 Establishment of fund. The authority shall establish a fund to be
24known as the "business seed fund" for making grants, loans, and investments under
25this subchapter.
AB733,23,4
1239.12 Grants, loans, and investments. (1) Subject to sub. (2), the
2authority may make a grant or loan of fund capital to, or may make an investment
3of fund capital in, a business proposed to the authority by a participant financial
4institution.
AB733,23,6 5(2) The authority may commit fund capital to a business under this section only
6if all of the following requirements are satisfied:
AB733,23,77 (a) The business is or will be headquartered in this state.
AB733,23,98 (b) The business is a seed or early stage business as determined by the
9authority.
AB733,23,1410 (c) The participant financial institution or the business demonstrates to the
11satisfaction of the authority that the grant, loan, or investment in the business will
12assist the business to create and retain for a period of time established by the
13authority full-time jobs in addition to any existing full-time jobs the business
14already provides.
AB733,23,1715 (d) Subject to sub. (3), a loan or investment made by the authority under this
16section shall be on terms that are substantially equivalent to the terms applicable
17for the business's other lenders or investors that are in the seed capital industry.
AB733,23,20 18(3) The authority may share profits from a loan or investment under this
19section with the participant financial institution that proposes the loan or
20investment.
AB733,23,23 21(4) The authority may require that a business receiving a grant under this
22section repay to the authority the amount of the grant under conditions established
23by the authority.
AB733,24,3
1239.13 Annual report. Annually, the authority shall submit to the governor
2and to the chief clerk of each house of the legislature, for distribution to the
3legislature under s. 13.172 (2), a report that includes all of the following:
AB733,24,5 4(1) An accounting of the moneys received in the fund from participant financial
5institutions.
AB733,24,7 6(2) An accounting of all expenditures from the fund by the authority for any
7purpose during the preceding year.
AB733,24,9 8(3) For each business that received a grant, loan, or investment from the
9authority under s. 239.12, all of the following:
AB733,24,1010 (a) The name and address of the business.
AB733,24,1111 (b) A description of the nature of the business.
AB733,24,1212 (c) The amount of the grant, loan, or investment.
AB733,24,1413 (d) A description of the purposes for which the business used or is using the
14grant, loan, or investment.
AB733,24,1915 (e) A statement of the number of employees the business employed when the
16business first received a grant, loan, or investment of fund capital, the number of
17employees the business employed on January 1 of the year preceding the year of the
18report, and the number of employees the business employed on December 31 of that
19year.
AB733,24,22 20(4) A detailed assessment of the success to date of the fund and of the
21authority's grants, loans, and investments of fund capital in businesses under this
22subchapter.
AB733, s. 41 23Section 41 . Nonstatutory provisions.
AB733,24,2524 (1) Definition. In this section, "authority" means the Wisconsin Seed Fund
25Authority, as created by this act.
AB733,25,1
1(2) Initial appointments.
AB733,25,112 (a) Notwithstanding the requirement of advice and consent of the senate under
3section 239.02 (1) (a) of the statutes, as created by this act, the initial members of the
4board of directors of the authority nominated by the governor under that section may
5be provisionally appointed by the governor, subject to later senate confirmation. Any
6provisional appointment shall be in full force until withdrawn by the governor or
7acted upon by the senate, and if confirmed by the senate shall continue for the
8remainder of the unexpired term of the member and until a successor is chosen and
9qualifies. A provisional appointee may exercise all the powers and duties of board
10membership to which the person is appointed during the time in which the appointee
11qualifies.
AB733,25,1812 (b) A provisional appointment made under paragraph (a) that is withdrawn by
13the governor shall, upon withdrawal, lapse and create a vacancy for provisional
14appointment of another initial member of the board of directors or chairperson of the
15board of the authority. Any provisional appointment made under paragraph (a) that
16is rejected by the senate shall upon rejection lapse and create a vacancy for
17nomination and appointment of another initial board member or chairperson of the
18board under paragraph (a).
AB733,25,2119 (c) Notwithstanding the lengths of terms specified in section 239.02 (1) of the
20statutes, as created by this act, the initial members of the board of directors of the
21authority shall be appointed for the following terms:
AB733,25,22 221. One member appointed by the governor for a term expiring on July 1, 2015.
AB733,25,25 232. One member appointed by the governor, the member appointed by the
24speaker of the assembly, and the member appointed by the majority leader of the
25senate, for terms expiring on July 1, 2016.
AB733,26,1
13. Two members appointed by the governor for terms expiring on July 1, 2017.
AB733,26,22 (End)
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