Wisconsin Legislature: 9,2980m

9,2973 Section 2973. 560.19 (3) of the statutes is amended to read:

560.19 (3) In coordination with the hazardous pollution prevention program solid and hazardous waste education center under s. 36.25 (30) and the department of natural resources, the department shall conduct an education, environmental management and technical assistance program to promote hazardous pollution prevention among businesses in the state.

9,2974 Section 2974. 560.20 (1) (f) of the statutes is amended to read:

560.20 (1) (f) "Small business" means a for-profit business having fewer than 25 100 full-time employes.

9,2975 Section 2975. 560.20 (2) (a) of the statutes is amended to read:

560.20 (2) (a) The department may provide technical assistance to an individual, small business or nonprofit organization. In addition to or in lieu of the technical assistance provided by the department and subject to par. (e), the department may make a grant to an individual, small business or nonprofit organization from the appropriation under s. 20.143 (1) (en) to partially fund technical assistance provided to the individual, small business or nonprofit organization. Technical assistance or a grant for technical assistance provided under this paragraph shall be for the purpose of developing and planning, at the preliminary stages, the start-up or expansion of a for-profit business that is or will be located in this state.

9,2976 Section 2976. 560.20 (2) (e) of the statutes is created to read:

560.20 (2) (e) If the department makes a grant under par. (a), the department may contract directly with and pay grant proceeds directly to any person providing technical assistance to the individual, small business or nonprofit organization for the purpose specified in par. (a).

9,2977 Section 2977. 560.20 (3) (a) (intro.) of the statutes is amended to read:

560.20 (3) (a) (intro.) The Subject to par. (cm), the department may award funds appropriated under s. 20.143 (1) (en) and (in) to an individual, small business or nonprofit organization for use in connection with the start-up or expansion of a for-profit business if all of the following apply:

9,2978 Section 2978. 560.20 (3) (cm) of the statutes is created to read:

560.20 (3) (cm) If the department awards a grant under this subsection, the department may contract directly with and pay grant proceeds directly to any person providing management assistance to the individual, small business or nonprofit organization.

9,2979 Section 2979. 560.25 of the statutes is created to read:

560.25 Manufacturing extension center grants. (1) Definitions. In this section:

(a) "Biotechnology" means technology related to life sciences.

(b) "Business" means a company located in this state, a company that has made a firm commitment to locate a facility in this state or a group of companies at least 80% of which are located in this state.

(d) "Technology-based nonprofit organization" means a nonprofit corporation, as defined in s. 181.0103 (17), or an organization described in section 501 (c) (3) of the Internal Revenue Code that is exempt from federal income tax under section 501 (a) of the Internal Revenue Code, and that has as a mission the transfer of technology to businesses in this state.

(2) Grants. Subject to subs. (4) and (5), the department may make a grant from the appropriation under s. 20.143 (1) (ie) to a technology-based nonprofit organization to provide support for a manufacturing extension center if all of the following apply:

(a) The technology-based nonprofit organization submits to the department a plan detailing its proposed expenditures and performance measures related to the project.

(b) The secretary approves the plan submitted under par. (a).

(3) Restriction on grant recipients. A technology-based nonprofit organization that receives a grant under this section is thereafter ineligible to receive a grant or loan under subch. V.

(4) Limit on grants. The department may not award more than $1,000,000 in grants under this section in a fiscal year.

(5) Program sunset. The department may not encumber any moneys under this section after June 30, 2001.

9,2980m Section 2980m. 560.26 of the statutes is created to read:

560.26 Wisconsin Procurement Institute grants. (1) Subject to sub. (3), the department shall make grants annually from the appropriation under s. 20.143 (1) (c) to the Wisconsin Procurement Institute if all of the following apply:

(a) The Wisconsin Procurement Institute uses the grant proceeds to further its efforts to secure federal government contracts and create jobs in the state.

(b) The Wisconsin Procurement Institute submits a plan to the department for each grant detailing the proposed use of the grant and the secretary approves the plan.

(c) The Wisconsin Procurement Institute enters into a written agreement with the department that specifies the conditions for use of the grant proceeds, including reporting and auditing requirements.

(d) The Wisconsin Procurement Institute agrees in writing to submit to the department the report required under sub. (2) by the time required under sub. (2).

(2) If the Wisconsin Procurement Institute receives a grant under this section, it shall submit to the department, within 6 months after spending the full amount of the grant, a report detailing how the grant proceeds were used.

(3) The department may not make grants under sub. (1) that exceed $100,000 in total in any year.

9,2983c Section 2983c. 560.28 of the statutes is created to read:

560.28 Biotechnology development finance company. (1) In this section:

(a) "Biotechnology" means technology related to life sciences.

(b) "Capital participation instrument" means all of the following:

1. Any of the following or an option or other right to acquire any of the following:

a. Common or preferred capital stock.

b. Convertible securities.

c. Evidences of long-term or short-term indebtedness.

d. Warrants.

e. Subscriptions.

f. Partnership or membership interests.

2. Royalties or other lawful derivations of a capital participation instrument listed under subd. 1.

(c) "Cost of a project" means costs associated with the design, planning and implementation of a project that, in accordance with sound business and financial practices, are appropriate charges to the project. The costs may include the costs of planning and design, options to buy land, feasibility or other studies, equipment, seed money, construction, working capital and any other costs determined by the biotechnology development finance company to be necessary to the purposes of this section.

(d) "Project" means commercial, industrial or other economic activity that is undertaken by a biotechnology company in this state.

(2) (a) The department shall organize and maintain a biotechnology development finance company as a nonstock, nonprofit corporation under ch. 181 for the exclusive purpose of investing in new or existing biotechnology companies in this state. From the appropriation under s. 20.143 (1) (c), the department shall make a one-time grant to the company for start-up capital and for reasonable administrative expenses of the company. The grant under this paragraph may not exceed $1,000,000.

(b) Subject to par. (c), the biotechnology development finance company may purchase a capital participation instrument of a project. The biotechnology development finance company shall ensure that all of the following apply with respect to a project before any investment is made in the project:

1. The biotechnology company has certified that the project plans conform to all applicable environmental, zoning, building, planning or sanitation laws.

2. There is a reasonable expectation that the biotechnology company will be successful.

3. Private industry has not provided sufficient capital required for the project.

4. The investment is necessary to the successful completion of the proposed project because other investment in the project is unavailable in the traditional capital markets, or because capital has been offered on terms that would preclude the success of the project.

5. Provision has been made by contract for adequate reporting of financial data by the project to the biotechnology development finance company. Those provisions may include a requirement for an annual or other periodic audit of the project's financial records.

6. The proceeds of the purchase will be used solely in connection with the costs of the project.

7. The biotechnology company is able to manage its project responsibilities.

(c) 1. The biotechnology development finance company may not own more than 49% of the voting stock or other interest in any enterprise as a result of a purchase under par. (b).

2. The total investment by the biotechnology development finance company in any one biotechnology company may not exceed $200,000.

(d) The findings made by the biotechnology development finance company with respect to whether a project meets the conditions under par. (b) 1. to 7. are conclusive.

(3) The department shall enter into a contract with the biotechnology development finance company. The contract shall provide that the department may make use of the services of the biotechnology development finance company and that the department shall advise, assist and provide administrative services to the biotechnology development finance company. The department shall determine the type and scope of any administrative services provided by the department to the biotechnology development finance company. The department may assign employes or contract with private or state agencies to perform the administrative services. The biotechnology development finance company may not engage in political activities.

(4) (a) The board of directors of the biotechnology development finance company shall consist of all of the following members:

1. The secretary, or his or her designee.

2. The secretary of administration, or his or her designee.

3. The executive director of the investment board, or his or her designee.

4. The executive director of the Wisconsin Housing and Economic Development Authority, or his or her designee.

5. The president of the University of Wisconsin System, or his or her designee.

6. The president of Forward Wisconsin, Inc., or his or her designee.

7. A representative of the state's biotechnology research community.

8. A representative of the state's biotechnology industry.

9. A representative of the state's venture capital industry.

(b) The members under par. (a) 7. to 9. shall serve 5-year terms and the initial members under par. (a) 7. to 9. shall be appointed by the governor. The biotechnology development finance company, in its bylaws, shall specify the method for electing new members under par. (a) 7. to 9. and for filling vacancies.

(5) Annually, the biotechnology development finance company shall provide a report on its activities to the appropriate standing committees of each house of the legislature in the manner provided under s. 13.172 (3) and to the governor.

(6) The assets transferred to, and the assets and liabilities of, the biotechnology development finance company 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 biotechnology development finance company. Neither the state, any political subdivision of the state nor the department is liable for any debt or liability of the biotechnology development finance company.

9,2984 Section 2984. 560.60 (4) of the statutes is amended to read:

560.60 (4) "Eligible recipient" means a governing body or a person who is eligible to receive a grant under s. 560.615, a grant or loan under s. 560.62, a grant or loan under s. 560.63 or a grant or loan under s. 560.65.

9,2985 Section 2985. 560.60 (10) of the statutes is amended to read:

560.60 (10) "Job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays position providing full-time equivalent employment. "Job" does not include initial training before an employment position begins.

9,2986 Section 2986. 560.605 (1) (e) (intro.) and 1. of the statutes are consolidated, renumbered 560.605 (1) (e) and amended to read:

560.605 (1) (e) The Except as provided in s. 560.68 (6), the eligible recipient receiving the grant or loan will contribute, from funds not provided by this state, whichever of the following applies: 1. Except as provided under subd. 3. and s. 560.68 (6), not less than 25% of the cost of the project.

9,2987 Section 2987. 560.605 (1) (e) 3. of the statutes is repealed.

9,2988 Section 2988. 560.605 (1) (f) of the statutes is amended to read:

560.605 (1) (f) The project meets all criteria set forth in s. 560.615, 560.62, 560.63, 560.65 or 560.66, whichever is appropriate.

9,2989 Section 2989. 560.605 (1) (g) of the statutes is amended to read:

560.605 (1) (g) Funds from the grant or loan under s. 560.615, 560.62, 560.63, 560.65 or 560.66 will not be used to pay overhead costs, except as provided in s. 560.65 (1m) (b), or to replace funds from any other source.

9,2990 Section 2990. 560.605 (1) (i) of the statutes is created to read:

560.605 (1) (i) The eligible recipient has not received a grant under s. 560.25.

9,2991 Section 2991. 560.605 (2) (intro.) of the statutes is amended to read:

560.605 (2) (intro.) The board shall consider all of the following before awarding a grant or loan to an eligible recipient for a project under s. 560.615, 560.62, 560.63 or 560.66:

9,2992 Section 2992. 560.605 (2m) (intro.) of the statutes is amended to read:

560.605 (2m) (intro.) When considering whether a project under s. 560.615, 560.62, 560.63 or 560.66 will be located in a targeted area, the board shall consider all of the following: