AB531-ASA1, s. 31 5Section 31. 560.31 (2) (b) of the statutes is amended to read:
AB531-ASA1,16,86 560.31 (2) (b) The At the time of application and on the date on which the person
7is certified, the
person has a net worth, at the time of application, of at least $500,000
8and has at least $500,000 in cash, cash equivalents , and marketable securities.
AB531-ASA1, s. 32 9Section 32. 560.31 (2) (g) of the statutes is created to read:
AB531-ASA1,16,1210 560.31 (2) (g) The person agrees to maintain in this state an investment office
11and staff actively engaged in making investments until all investment pools have
12been decertified.
AB531-ASA1, s. 33 13Section 33. 560.31 (2) (h) of the statutes is created to read:
AB531-ASA1,16,2114 560.31 (2) (h) The person has provided the department with a list of all persons
15that have an ownership interest in the person as provided under this paragraph. The
16list shall include the percentage ownership interest of each owner and indicate
17whether the interest is voting or nonvoting. If the person is an entity that is
18registered under 15 USC 78l (g) or required to file reports under 15 USC 78o (d), the
19person shall list only those persons having beneficial ownership of equity securities
20of at least 5 percent. If a list contains the name of a business entity, the person shall
21also include a list of all persons that have an ownership interest in the entity.
AB531-ASA1, s. 34 22Section 34. 560.31 (2) (i) of the statutes is created to read:
AB531-ASA1,16,2423 560.31 (2) (i) The person has provided the department with a business plan
24covering at least the 5-year period following the date of application.
AB531-ASA1, s. 35 25Section 35. 560.31 (2) (j) of the statutes is created to read:
AB531-ASA1,17,3
1560.31 (2) (j) The person has provided the department with the person's
2investment strategy, along with a description of the investment criteria the person
3intends to follow.
AB531-ASA1, s. 36 4Section 36. 560.31 (2) (k) of the statutes is created to read:
AB531-ASA1,17,65 560.31 (2) (k) The person has provided the department with the person's
6organizational chart.
AB531-ASA1, s. 37 7Section 37. 560.32 (2) (b) of the statutes is renumbered 560.32 (2) (b) 1. and
8amended to read:
AB531-ASA1,17,129 560.32 (2) (b) 1. The Prior to the effective date of this subdivision .... [revisor
10inserts date], the
department may certify an investment under this subsection only
11if, after the certification, the department will not have certified a total of more than
12$50,000,000 in investments under this subsection.
AB531-ASA1, s. 38 13Section 38. 560.32 (2) (b) 2. of the statutes is created to read:
AB531-ASA1,17,1914 560.32 (2) (b) 2. Beginning on the effective date of this subdivision .... [revisor
15inserts date], the department shall certify investments for which notices have been
16received under par. (a), subject to the limit specified in this subdivision. The
17department may certify an investment under this subdivision only if, after the
18certification, the department will not have certified a total of more than $75,000,000
19in investments under this subdivision.
AB531-ASA1, s. 39 20Section 39. 560.32 (2) (c) of the statutes is renumbered 560.32 (2) (c) 1.
AB531-ASA1, s. 40 21Section 40. 560.32 (2) (c) 2. of the statutes is created to read:
AB531-ASA1,18,222 560.32 (2) (c) 2. The department may not certify an investment under par. (b)
232. if, after the certification, the investor, together with all affiliates of the investor,
24would have in certified capital investments under par. (b) 2. more than the greater

1of $10,000,000 or 15 percent of the total amount of investments that the department
2may certify under par. (b) 2.
AB531-ASA1, s. 41 3Section 41. 560.32 (2) (d) of the statutes is amended to read:
AB531-ASA1,18,224 560.32 (2) (d) If, as a result of the limitations under par. (b) or (c), the
5department may not certify the full amount requested in applications for certified
6capital investments submitted under par. (a), the department shall allocate prorate
7the amounts available for certification in order of priority based on the date on which
8the application was filed. If the amounts available for certification are insufficient
9to certify the full amount of all applications for certified capital investments that are
10submitted on the same day, the department shall prorate the available amount on
11the basis of the amount that the investor has committed to invest in the certified
12capital company under par. (a)
among eligible applicants, except as otherwise
13provided in this paragraph. If the proration would result in a certified capital
14company having less than $10,000,000 in certified capital, the department may not
15allocate any amount to that certified capital company. If the proration would result
16in no certified capital company having $10,000,000 or more in certified capital, the
17department may promulgate rules to implement an alternative allocation procedure.
18Notwithstanding s. 227.24 (1) (a), (2) (b), and (3), the department is not required to
19provide evidence that promulgating a rule under this paragraph as an emergency
20rule is necessary for the preservation of the public peace, health, safety, or welfare
21and is not required to provide a finding of an emergency for a rule promulgated under
22this paragraph
.
AB531-ASA1, s. 42 23Section 42. 560.32 (3) of the statutes is renumbered 560.32 (3) (a) and
24amended to read:
AB531-ASA1,19,8
1560.32 (3) (a) A certified investor may not, individually, or with or through one
2or more affiliates, own 10% or more of the equity securities in, be an affiliate, a
3general partner, or a manager of, or otherwise control the investments of the certified
4capital company. This subsection paragraph does not preclude a certified investor
5any person from exercising its legal rights and remedies, including interim
6management of a certified capital company, in the event that a certified capital
7company is in default of its statutory or contractual obligations to the certified
8investor
that or any other person.
AB531-ASA1, s. 43 9Section 43. 560.32 (3) (b) of the statutes is created to read:
AB531-ASA1,19,1210 560.32 (3) (b) Paragraph (a) does not preclude any person from establishing
11controls to ensure that a certified capital company satisfies the requirements of s.
12560.34 (1m).
AB531-ASA1, s. 44 13Section 44. 560.33 (1) (intro.) of the statutes is amended to read:
AB531-ASA1,19,1714 560.33 (1) Qualifications. (intro.) A Except as provided in sub. (2), a business
15is a qualified business if all of the following requirements are met, as of the time that
16a certified capital company, or any affiliate of the certified capital company, makes
17its first investment in the business, all of the following requirements are met:
AB531-ASA1, s. 45 18Section 45. 560.33 (1) (a) of the statutes is amended to read:
AB531-ASA1,19,2319 560.33 (1) (a) The business is headquartered in this state and its principal
20business operations are located in this state or the business commits to relocate its
21headquarters and its principal business operations to this state within 90 days after
22the date on which the certified capital company makes its first investment in the
23business
.
AB531-ASA1, s. 46 24Section 46. 560.33 (1) (b) of the statutes is renumbered 560.33 (1) (b) (intro.)
25and amended to read:
AB531-ASA1,20,2
1560.33 (1) (b) (intro.) The business has no more than 100 employees, at and any
2of the following applies:
AB531-ASA1,20,3 31. At least 75% of whom those employees are employed in this state.
AB531-ASA1, s. 47 4Section 47. 560.33 (1) (b) 2. of the statutes is created to read:
AB531-ASA1,20,65 560.33 (1) (b) 2. At least 75 percent of the total payroll of the business is paid
6to employees who are employed in this state.
AB531-ASA1, s. 48 7Section 48. 560.33 (1) (e) of the statutes is amended to read:
AB531-ASA1,20,98 560.33 (1) (e) The business is not predominantly engaged in professional
9services provided by accountants, business consultants, lawyers, or physicians.
AB531-ASA1, s. 49 10Section 49. 560.33 (1) (g) of the statutes is amended to read:
AB531-ASA1,20,1311 560.33 (1) (g) The business is not engaged in banking or, lending, lobbying, or
12political consulting
and does not make any loans to, or investments in, certified
13capital companies.
AB531-ASA1, s. 50 14Section 50. 560.33 (1) (h) of the statutes is created to read:
AB531-ASA1,20,1615 560.33 (1) (h) The business is not predominantly engaged in retail sales, unless
16the business is approved by the department under sub. (2).
AB531-ASA1, s. 51 17Section 51. 560.33 (1) (i) of the statutes is created to read:
AB531-ASA1,20,2118 560.33 (1) (i) The business was not organized by a certified capital company or
19an affiliate of a certified capital company. This paragraph does not prohibit a
20certified capital company from providing financial, technical, or similar advice to a
21business before making an investment in the business.
AB531-ASA1, s. 52 22Section 52. 560.33 (1) (j) of the statutes is created to read:
AB531-ASA1,20,2323 560.33 (1) (j) The business is engaged in at least one of the following activities:
AB531-ASA1,20,2424 1. Manufacturing, processing, or assembling products.
AB531-ASA1,21,2
12. Providing services, unless the services are of such a nature that the
2department disapproves of the business under sub. (2).
AB531-ASA1,21,33 3. Conducting research and development.
AB531-ASA1,21,54 4. Conducting any other business that is not excluded under this subsection
5and that is approved by the department under sub. (2).
AB531-ASA1, s. 53 6Section 53. 560.33 (1) (k) of the statutes is created to read:
AB531-ASA1,21,137 560.33 (1) (k) The business does not have a financial relationship with a
8certified capital company or any affiliate of a certified capital company before the
9date on which the certified capital company makes its first investment in the
10business, unless the business is approved under sub. (2) notwithstanding such a
11financial relationship. This paragraph does not prohibit a certified capital company
12from providing financial advice to a business before making an investment in the
13business.
AB531-ASA1, s. 54 14Section 54. 560.33 (2) of the statutes is renumbered 560.33 (2) (a) and
15amended to read:
AB531-ASA1,22,616 560.33 (2) (a) A certified capital company may shall, prior to making an
17investment in a specific business, request a written opinion from the department
18that a business in which it proposes to invest is a qualified business. If the
19department determines that the business meets the requirements under sub. (1), the
20department shall issue a written opinion stating that the business is a qualified
21business
provide the department with a description of the proposed investment in
22the form prescribed by the department. Within 15 business days of receiving the
23description, the department shall determine whether the business is a qualified
24business and the proposed investment is consistent with the certified capital
25company's investment criteria and, if the business is not a qualified business or the

1proposed investment is not consistent, notify the certified capital company in writing
2of the determination and the reasons for the determination. If the department fails
3to so notify the certified capital company within 15 business days of receiving the
4request, the business shall be deemed a qualified business and the investment shall
5be deemed consistent, notwithstanding any failure to satisfy sub. (1) or s. 560.34 (1)
6(f)
.
AB531-ASA1, s. 55 7Section 55. 560.33 (2) (b) and (c) of the statutes are created to read:
AB531-ASA1,22,118 560.33 (2) (b) During the 15 business day period established under par. (a), the
9department may make a determination that a business is a qualified business,
10notwithstanding any failure to satisfy sub. (1), if the certified capital company's
11proposed investment in the business will further the goals of this subchapter.
AB531-ASA1,22,1712 (c) If the department determines that a proposed investment is not consistent
13with a certified capital company's investment criteria, the certified capital company
14may, within 10 days after the department's decision, request a contested case hearing
15under s. 227.42 from the department. If the final administrative or judicial
16proceeding results in a determination that the investment is consistent, the
17department shall issue a redetermination accordingly.
AB531-ASA1, s. 56 18Section 56. 560.34 (1) (intro.) of the statutes is amended to read:
AB531-ASA1,22,2419 560.34 (1) Qualified investments requirements. (intro.) In order for a
20certified capital company to prevent disqualification under s. 560.37 of an
21investment pool, the certified capital company shall ensure that the investment pool
22makes qualified investments in accordance with the schedule under sub. (1m). An
23Except as provided in sub. (1g), an investment is a qualified investment if the
24investment meets all of the following requirements:
AB531-ASA1, s. 57 25Section 57. 560.34 (1) (a) 1. of the statutes is amended to read:
AB531-ASA1,23,7
1560.34 (1) (a) 1. An equity security Except as otherwise provided in this
2subdivision, equity securities or options, warrants, or other equity participation
3instruments
of the qualified business, unless the certified capital company, after the
4investment and assuming full conversion and exercise of any equity participation
5instrument, owns more than 50 percent of the voting equity of the qualified business.
6The department may grant an exception to this percentage limitation under s. 560.33
7(2)
.
AB531-ASA1, s. 58 8Section 58. 560.34 (1) (a) 2. a. of the statutes is amended to read:
AB531-ASA1,23,119 560.34 (1) (a) 2. a. The debt is unsecured not secured by a first priority lien on
10any of the assets of the qualified business at the time of the certified capital
11company's qualified investment in the qualified business
.
AB531-ASA1, s. 59 12Section 59. 560.34 (1) (a) 2. b. of the statutes is amended to read:
AB531-ASA1,23,1913 560.34 (1) (a) 2. b. The Except as otherwise provided in this subd. 2. b., the debt
14is convertible into equity securities or options, warrants, or other equity
15participation instruments such as options or warrants or has attached equity
16participation rights, unless the debt and the equity participation instruments, if
17fully converted and exercised, would result in the certified capital company owning
18more than 50 percent of the voting equity of the qualified business. The department
19may grant an exception to this percentage limitation under s. 560.33 (2)
.
AB531-ASA1, s. 60 20Section 60. 560.34 (1) (b) of the statutes is amended to read:
AB531-ASA1,23,2321 560.34 (1) (b) As a condition of the investment, the qualified business agrees
22not to use the proceeds from the investment for the purpose of relocating its
23operations other than to this state.
AB531-ASA1, s. 61 24Section 61. 560.34 (1) (c) of the statutes is amended to read:
AB531-ASA1,24,3
1560.34 (1) (c) As a condition of the investment, the qualified business agrees,
2as long as the certified capital corporation company continues to hold the
3investment, not to relocate its headquarters out of this state.
AB531-ASA1, s. 62 4Section 62. 560.34 (1) (d) of the statutes is renumbered 560.34 (1) (d) (intro.)
5and amended to read:
AB531-ASA1,24,86 560.34 (1) (d) (intro.) As a condition of the investment, the qualified business
7agrees, as long as the certified capital corporation company continues to hold the
8investment, to maintain do any of the following:
AB531-ASA1,24,9 91. Maintain at least 75% of its employees in this state.
AB531-ASA1, s. 63 10Section 63. 560.34 (1) (d) 2. of the statutes is created to read:
AB531-ASA1,24,1211 560.34 (1) (d) 2. Pay at least 75 percent of its total payroll to employees who
12are employed in this state.
AB531-ASA1, s. 64 13Section 64. 560.34 (1) (e) of the statutes is amended to read:
AB531-ASA1,24,2314 560.34 (1) (e) As a condition of the investment, the qualified business agrees,
15as long as the certified capital corporation company continues to hold the
16investment, to maintain at least 75% of its employees at work sites that were
17maintained by the qualified business at the time that the investment was made or
18at work sites that are no more than 25 miles from the place where the headquarters
19or principal business operations of the qualified business are located at the time of
20the investment
, unless the qualified business obtains an exemption from the
21department under this paragraph. The department may grant an exemption unless
22it determines that the qualified business is locating the employees at new sites to
23take advantage of lower wage rates in the areas where the new sites are located.
AB531-ASA1, s. 65 24Section 65. 560.34 (1) (f) of the statutes is created to read:
AB531-ASA1,25,2
1560.34 (1) (f) The investment is consistent with the certified capital company's
2investment criteria.
AB531-ASA1, s. 66 3Section 66. 560.34 (1e) of the statutes is created to read:
AB531-ASA1,25,84 560.34 (1e) Use of certified investments for particular purposes. (a) Except
5as provided in pars. (b) and (c), a certified capital company may expend moneys in
6an investment pool to purchase, for the benefit of its certified investors, U.S. treasury
7securities, other investment-grade securities, a guaranty, indemnity, bond,
8insurance policy, or other payment undertaking, or any combination thereof.
AB531-ASA1,25,119 (b) No more than one of the certified investors of the certified capital company,
10or affiliate of such a certified investor, may provide a guaranty, indemnity, bond,
11insurance policy, or other payment undertaking under par. (a).
AB531-ASA1,25,1412 (c) With respect to a certified capital company that receives certified capital
13investments under s. 560.32 (2) (b) 2., no more than 25 percent of any particular
14investment pool may be expended under par. (a).
AB531-ASA1, s. 67 15Section 67. 560.34 (1g) of the statutes is created to read:
AB531-ASA1,25,1816 560.34 (1g) Discretionary exemptions. The department may grant an
17exemption from any requirement under sub. (1) if the certified capital company is in
18substantial compliance with the requirement.
AB531-ASA1, s. 68 19Section 68. 560.34 (1m) (a) 2. of the statutes is renumbered 560.34 (1m) (a)
202. a. and amended to read:
AB531-ASA1,25,2421 560.34 (1m) (a) 2. a. Within With respect to a certified capital company that
22receives certified capital investments under s. 560.32 (2) (b) 1., within
5 years after
23the investment date for a particular investment pool, at least 50% 50 percent of the
24investment pool shall be placed in qualified investments.
AB531-ASA1, s. 69 25Section 69. 560.34 (1m) (a) 2. b. of the statutes is created to read:
AB531-ASA1,26,5
1560.34 (1m) (a) 2. b. With respect to a certified capital company that receives
2certified capital investments under s. 560.32 (2) (b) 2., within 5 years after the
3investment date for a particular investment pool, at least 50 percent of the
4investment pool shall be placed in qualified investments and, of such 50 percent, at
5least 50 percent shall be placed in qualified investments in early stage businesses.
AB531-ASA1, s. 70 6Section 70. 560.34 (1m) (b) of the statutes is amended to read:
AB531-ASA1,26,207 560.34 (1m) (b) The proceeds of all capital of a qualified investment returned
8to a certified capital company by a qualified business may be placed in new qualified
9investments, which shall count toward the percentage requirements under par. (a)
10and s. 560.36 (3) (1) (c). The department shall promulgate rules governing the extent
11to which a reinvestment of proceeds from the sale of a qualified investment in a
12qualified business may be counted toward the percentage requirements under par.
13(a) and ss. 560.36 (3) (1) (c) and 560.37 (3m) (a) 2. These rules may provide that
14reinvested proceeds from the sale of short-term investments shall be only partially
15counted toward the percentage requirements under par. (a) and ss. 560.36 (3) (1) (c)
16and 560.37 (3m) (a) 2. The rules may also provide that proceeds from the sale of an
17investment in a qualified business that are reinvested in that qualified business, or
18an affiliate of that qualified business, shall be only partially counted toward the
19percentage requirements under par. (a) and ss. 560.36 (3) (1) (c) and 560.37 (3m) (a)
202.
AB531-ASA1, s. 71 21Section 71. 560.34 (2) of the statutes is renumbered 560.34 (2) (intro.) and
22amended to read:
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