1997 Wisconsin Act 215

560.35 Reporting requirements and fees. (1) Receipts of certified capital. As soon as practicable after the receipt of a certified capital investment, a certified capital company shall report all of the following to the department:

(a) The name of the certified investor from which the certified capital was received, including the certified investor's tax identification number.

(b) The amount of the certified capital investment.

(c) The date on which the certified capital investment was received by the certified capital company.

(d) The investment date for the investment pool of which the certified capital will be a part.

(1m) Violation of agreements by qualified businesses. As soon as practicable after the receipt of information by the certified capital company that a qualified business has violated an agreement made under s. 560.34 (1) (b) to (e), the certified capital company shall notify the department of the violation and the facts giving rise to the violation.

(2) Annual reports. On or before January 31 annually, a certified capital company shall report all of the following to the department:

(a) The amount of the certified capital company's certified capital at the end of the preceding year.

(b) Whether the certified capital company has invested more than 15% of its total certified capital in any one person.

(c) All qualified investments that the certified capital company has made during the previous calendar year and the investment pool from which each qualified investment was made.

(3) Financial statements. Within 90 days of the end of the certified capital company's fiscal year, the certified capital company shall provide to the department a copy of its annual audited financial statements, including the opinion of an independent certified public accountant. The audit shall address the methods of operation and conduct of the business of the certified capital company to determine whether the certified capital company is complying with this subchapter and the rules promulgated under this subchapter, including whether certified capital has been invested in the manner required under s. 560.34. The financial statements provided under this subsection shall be segregated by investment pool and shall be separately audited on that basis to allow the department to determine whether the certified capital company is in compliance with s. 560.34 (1m).

(4) Fees. On or before January 31 annually, a certified capital company shall pay a nonrefundable certification fee of $5,000 to the department, unless January 31 falls within 6 months of the date on which the certified capital company was certified under s. 560.31.

(5) Exemption from rights of inspection and copying. If the department determines that a document submitted by a certified capital company under this section contains a trade secret, as defined in s. 134.90 (1) (c) or a business secret, that document is not subject to the right of inspection and copying under s. 19.35.

560.36 Distributions. A certified capital company may make a distribution only if one of the following conditions is met:

(1) Qualified distribution. The distribution is a qualified distribution.

(2) Written determination. The department made a written determination that the distribution may be made without adversely affecting the ability of the certified capital company to place, in qualified investments, an amount equal to 100% of the certified capital in the investment pool from which the distribution is to be made.

(3) Placement of 100% of investments in qualified investments. The certified capital company has placed in qualified investments an amount equal to 100% of the certified capital investments in the investment pool.

(4) Debt payments. The distribution is a payment of principal or interest owed to a debt holder of a certified capital company, even if the debt holder is also a holder of equity and even if the indebtedness is a certified capital investment.

560.37 Compliance reviews; decertification; disqualification. (1) Annual compliance review. The department shall conduct an annual review of each certified capital company to determine if the certified capital company is complying with the requirements of this subchapter, to advise the certified capital company regarding the status of its investments as qualified investments and to ensure that no investment has been made in violation of this subchapter. The cost of the annual review shall be paid by each certified capital company according to a reasonable fee schedule adopted by the department.

(2) Disqualification of an investment pool. Any material violation of s. 560.34 (1m) is a ground for disqualification of the noncomplying investment pool. If the department determines that the certified capital company is not in compliance with s. 560.34 (1m) with respect to an investment pool, it shall send a written notice to the certified capital company and the commissioner of insurance stating that the investment pool has been disqualified.

(3) Decertification of a certified capital company. Any material violation of s. 560.34 (2), (3) or (4) or 560.35 (1), (2), (3) or (4) is a ground for decertification of the noncomplying certified capital company. If the department determines that the certified capital company is not in compliance with s. 560.34 (2), (3) or (4) or 560.35 (1), (2), (3) or (4), the department shall send a written notice to the certified capital company that the certified capital company may be subject to decertification in 120 days from the date on which the notice was mailed, unless the certified capital company brings itself into full compliance with ss. 560.34 (2), (3) or (4) and 560.35 (1), (2), (3) and (4). If at the end of the 120-day period the certified capital company is not in compliance with ss. 560.34 (2), (3) or (4) and 560.35 (1), (2), (3) and (4), the department shall send a notice to the certified capital company and the commissioner of insurance stating that the certified capital company has been decertified.

(3m) Voluntary decertification. (a) A certified capital company may voluntary decertify itself as a certified capital company if any of the following conditions are met:

1. It has been at least 10 years since the last certified capital investment was made in the certified capital company.

2. The certified capital company has placed in qualified investments an amount equal to 100% of the certified capital investment in the certified capital company.

(b) A certified capital company wishing to decertify itself under this subsection shall send a notice to the department certifying that it is eligible for decertification under par. (a). The decertification is effective on the date that the notice under this paragraph is received by the department.

(4) Effect of decertification. Decertification of a certified capital company or an investment pool has the effects specified in s. 76.635 (4).

(5) Notices to certified investors. The department shall notify a certified investor when the certified capital company tax credit arising from a certified investment is no longer subject to recapture and forfeiture under s. 76.635 (4).

560.38 Department evaluation of program. Beginning on March 31, 2000, and on March 31 of each even-numbered year thereafter, the department shall submit a report to the legislature under s. 13.172 (2) regarding the program under this subchapter. The report shall include all of the following:

(1) The total amount of certified capital investments made during the previous 2 calendar years, as well as the total amount of certified capital investments made since the effective date of this subsection .... [revisor inserts date].

(2) Statistical information on the qualified investments made by certified capital companies during the previous 2 calendar years.

(3) The department's assessment of the number of jobs created in this state during the previous 2 calendar years as a result of the certified capital company program under this subchapter.

215,4 Section 4 . Nonstatutory provisions.

(1) Rule making. The department of commerce shall submit in proposed form the rules required under sections 560.31 (1) and 560.34 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 after the effective date of this subsection.

(2) Position authorizations. The authorized FTE positions for the department of commerce are increased by 2.0 PR positions to be funded from the appropriation under section 20.143 (1) (hm) of the statutes, for the purpose of administering the program under subchapter II of chapter 560.

215,6 Section 6 . Effective date.

(1f) This act takes effect on July 1, 1999.