(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:
9,2993
Section
2993. 560.607 (3) of the statutes is created to read:
560.607 (3) Evaluation costs, collection costs, foreclosure costs and other costs associated with administering the loan portfolio under this subchapter, excluding staff salaries.
9,2994
Section
2994. 560.61 (1) of the statutes is amended to read:
560.61 (1) Make a grant or loan to an eligible recipient for a project that meets the criteria for funding under s. 560.605 (1) and (2) and under s. 560.615, 560.62, 560.63, 560.65 or 560.66, whichever is appropriate, from the appropriations under s. 20.143 (1) (c), (cb),
and (ie), (s) and (sm).
9,2995
Section
2995. 560.615 of the statutes is repealed.
9,2996
Section
2996. 560.62 (4) of the statutes is renumbered 560.607, and 560.607 (intro.) and (1), as renumbered, are amended to read:
560.607 Miscellaneous and administrative expenditures. (intro.) In each biennium, the board
department may expend or encumber up to a total of 1% of the moneys appropriated under s. 20.143 (1) (c) for that biennium for any of the following:
(1) Evaluations of proposed technical research projects under s. 560.62.
9,2996g
Section 2996g. 560.63 (4) of the statutes is amended to read:
560.63
(4) The contribution required under s. 560.605 (1) (e) may consist of funding or of in-kind contributions. Not more than 20% of the contribution of a business may consist of funding which the business receives under the federal
job training partnership act, 29 USC 1501 to 1781 Workforce Investment Act of 1998, 29 USC 2801 to 2945.
9,2996p
Section 2996p. 560.65 (4) (a) of the statutes is repealed.
9,2997
Section
2997. 560.66 (1) (intro.) of the statutes is amended to read:
560.66 (1) (intro.) The board may award grants and loans under s. 560.61 to eligible recipients for any project that is not eligible for a grant or loan under s. 560.615, 560.62 or 560.63, if the board determines that the project is a major economic development project and considers all of the following:
9,2998
Section
2998. 560.68 (3) of the statutes is amended to read:
560.68 (3) The department may charge a grant or loan recipient an origination fee of up to 1.5% 2% of the grant or loan amount if the grant or loan exceeds $200,000 and is awarded under s. 560.63 or 560.66. The department shall deposit all origination fees collected under this subsection in the appropriation account under s. 20.143 (1) (gm).
9,2998g
Section 2998g. 560.70 (7) of the statutes is amended to read:
560.70 (7) "Tax benefits" means the development zones credit under ss. 71.07 (2dx), 71.28 (1dx) and 71.47 (1dx), except that in s. 560.795, "tax benefits" means the development zones investment credit under ss. 71.07 (2di), 71.28 (1di) and 71.47 (1di) and the development zones credit under ss. 71.07 (2dx), 71.28 (1dx) and 71.47 (1dx).
9,2998p
Section 2998p. 560.737 (1) (b) of the statutes is amended to read:
560.737
(1) (b) A
job training partnership program workforce investment activity under
29 USC 1502 29 USC 2801 to 2945.
9,2999
Section
2999. 560.745 (2) (a) of the statutes is amended to read:
560.745 (2) (a) When the department designates a development zone under s. 560.71, it shall establish a limit for tax benefits for the development zone determined by allocating to the development zone a portion of $33,155,000 $38,155,000.
9,3000
Section
3000. 560.75 (11) of the statutes is repealed.
9,3000n
Section 3000n. 560.785 (1) (intro.) of the statutes is amended to read:
560.785 (1) (intro.) For the development zone program under ss. 560.70 to 560.78, the development opportunity zone program under s. 560.795 and the enterprise development zone program under s. 560.797, the department shall promulgate rules that further define a person's eligibility for tax benefits. The rules shall do at least all of the following:
9,3001
Section
3001. 560.785 (1) (b) (intro.) and 1. of the statutes are consolidated, renumbered 560.785 (1) (b) and amended to read:
560.785 (1) (b) Allow a person to claim up to $6,500 $8,000 in tax benefits during the time that an area is designated as a development zone, as a development opportunity zone or as an enterprise development zone for any of the following: Creating creating a full-time job that is filled by a member of the target population.
9,3002
Section
3002. 560.785 (1) (b) 2. of the statutes is repealed.
9,3003
Section
3003. 560.785 (1) (bm) of the statutes is created to read:
560.785 (1) (bm) Allow a person to claim up to $8,000 in tax benefits during the time that an area is designated as an enterprise development zone for retaining a full-time job if the department determines that the person made a significant capital investment to retain the full-time job.
9,3004
Section
3004. 560.785 (1) (c) (intro.) of the statutes is amended to read:
560.785 (1) (c) (intro.) Allow a person to claim up to $4,000 $6,000 in tax benefits during the time that an area is designated as a development zone, as a development opportunity zone or as an enterprise development zone for any of the following:
