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:
AB531-ASA1,27,323 560.34 (2) (intro.) Nonqualified investments. All certified capital investments
24in a certified capital company that are not invested in qualified investments may be
25held or invested by the certified capital company as it considers appropriate, except

1that a certified capital company may not invest certified capital investments in an
2insurance company or in an affiliate of an insurance company.
only in any of the
3following:
AB531-ASA1, s. 72 4Section 72. 560.34 (2) (a) to (k) of the statutes are created to read:
AB531-ASA1,27,65 560.34 (2) (a) Deposits with a federally insured financial institution, as defined
6in s. 705.01 (3).
AB531-ASA1,27,87 (b) Certificates of deposit in a federally insured financial institution, as defined
8in s. 705.01 (3).
AB531-ASA1,27,119 (c) Investment securities that are obligations of the United States or its
10agencies or instrumentalities, or that are obligations that are guaranteed fully as to
11principal and interest by the United States.
AB531-ASA1,27,1312 (d) Commercial paper rated at least "A1," "P1," or the equivalent, by a
13nationally recognized credit rating organization.
AB531-ASA1,27,1514 (e) Debt instruments rated at least "AA" or its equivalent by a nationally
15recognized credit rating organization.
AB531-ASA1,27,1916 (f) Debt instruments issued by, or guaranteed with respect to payment by, an
17entity whose unsecured indebtedness is rated at least "AA" or its equivalent by a
18nationally recognized credit rating organization and which are not subordinated to
19other unsecured indebtedness of the issuer or guarantor, as applicable.
AB531-ASA1,27,2220 (g) Swaps designed to realize or protect the value of a qualified investment, if
21the counterparty is rated at least "A" or its equivalent by a nationally recognized
22credit rating organization.
AB531-ASA1,27,2323 (h) Obligations of the state or any political subdivision of the state.
AB531-ASA1,27,2524 (i) Interests in money market or other mutual funds, the portfolios of which are
25limited to cash and other permissible investments described in this subsection.
AB531-ASA1,28,1
1(j) A small business investment company that is approved by the department.
AB531-ASA1,28,22 (k) Any other investments approved in advance in writing by the department.
AB531-ASA1, s. 73 3Section 73. 560.34 (4) of the statutes is amended to read:
AB531-ASA1,28,104 560.34 (4) Restrictions on management. No certified capital company may be
5managed or controlled by, or have a general partner that is, an insurance company,
6a person who is subject to taxation under subchs. I, II, and IV of ch. 76, a credit union
7organized under ch. 186, a savings bank organized under ch. 214, a savings and loan
8association organized under ch. 215, or a bank organized under ch. 221,
or an affiliate
9of an insurance company any such entity and that is a certified investor in the
10certified capital company
.
AB531-ASA1, s. 74 11Section 74. 560.34 (5) of the statutes is created to read:
AB531-ASA1,28,1612 560.34 (5) Qualified investment becoming nonqualified. (a) If a certified
13capital company makes an investment authorized under s. 560.32 (2) (b) 2. in a
14qualified business and during the time that the certified capital company still holds
15the investment, the qualified business violates an agreement made under sub. (1) (b)
16to (e), all of the following apply:
AB531-ASA1,28,2017 1. The violation does not affect the certified capital company's satisfaction of
18the percentage requirements under sub. (1m) (a) 1. or 2., and 100 percent of the
19amount of the qualified investment shall be counted toward the certified capital
20company's satisfaction of those percentage requirements.
AB531-ASA1,28,2421 2. If the violation occurs within the first year after the qualified investment was
22made, no amount of the qualified investment shall be counted toward the certified
23capital company's satisfaction of the percentage requirements under ss. 560.36 (3)
24and 560.37 (3m) (a).
AB531-ASA1,29,4
13. If the violation occurs more than one year, but 3 years or less, after the
2qualified investment was made, only 25 percent of the amount of the qualified
3investment shall be counted toward the certified capital company's satisfaction of the
4percentage requirements under ss. 560.36 (3) and 560.37 (3m) (a).
AB531-ASA1,29,85 4. If the violation occurs more than 3 years, but 5 years or less, after the
6qualified investment was made, only 50 percent of the amount of the qualified
7investment shall be counted toward the certified capital company's satisfaction of the
8percentage requirements under ss. 560.36 (3) and 560.37 (3m) (a).
AB531-ASA1,29,129 5. If the violation occurs more than 5 years after the qualified investment was
10made, 90 percent of the amount of the qualified investment shall be counted toward
11the certified capital company's satisfaction of the percentage requirements under ss.
12560.36 (3) and 560.37 (3m) (a).
AB531-ASA1,29,1913 (b) Notwithstanding par. (a), if a qualified business violates an agreement
14under sub. (1) (b), (c), (d), or (e), the department may grant an exception to the
15requirements under par. (a) 2. to 5. and not reduce the amount of the qualified
16investment that is counted toward the certified capital company's satisfaction of the
17percentage requirements under ss. 560.36 (3) and 560.37 (3m) (a), unless the
18department determines that the qualified business is locating employees at new sites
19to take advantage of lower wage rates in the areas where those sites are located.
AB531-ASA1, s. 75 20Section 75. 560.35 (1c) of the statutes is created to read:
AB531-ASA1,29,2321 560.35 (1c) Qualified investments. Within 3 business days after making a
22qualified investment, a certified capital company shall report all of the following to
23the department:
AB531-ASA1,29,2524 (a) The name of the qualified business in which the qualified investment was
25made.
AB531-ASA1,30,1
1(b) The amount of the qualified investment.
AB531-ASA1,30,22 (c) The type of investment, as specified in s. 560.34 (1) (a) 1. or 2. a. or b.
AB531-ASA1, s. 76 3Section 76. 560.35 (1r) of the statutes is created to read:
AB531-ASA1,30,94 560.35 (1r) Qualified investment schedule report. Within 30 days after the
5conclusion of each time period specified in s. 560.34 (1m) (a), a certified capital
6company shall report to the department, in the format and substance prescribed by
7the department, information required by the department for determining whether
8the certified capital company is in compliance with the percentage requirements
9under s. 560.34 (1m) (a).
AB531-ASA1, s. 77 10Section 77. 560.35 (2) (intro.) of the statutes is amended to read:
AB531-ASA1,30,1511 560.35 (2) Annual Semiannual reports. (intro.) On Each year, on or before
12January 31 annually, for the preceding 6-month period ending on December 31, and
13on or before July 31, for the preceding 6-month period ending on June 30
, a certified
14capital company shall report, in the format and substance prescribed by the
15department,
all of the following to the department:
AB531-ASA1, s. 78 16Section 78. 560.35 (2) (a) of the statutes is amended to read:
AB531-ASA1,30,1817 560.35 (2) (a) The amount of the certified capital company's certified capital at
18the end of the preceding year 6-month period.
AB531-ASA1, s. 79 19Section 79. 560.35 (2) (c) of the statutes is amended to read:
AB531-ASA1,30,2220 560.35 (2) (c) All qualified investments that the certified capital company has
21made during the previous calendar year preceding 6-month period and the
22investment pool from which each qualified investment was made.
AB531-ASA1, s. 80 23Section 80. 560.35 (2) (d) of the statutes is created to read:
AB531-ASA1,31,224 560.35 (2) (d) All amounts that the certified capital company has expended
25under s. 560.34 (1e) (a), the investment pool from which each such expenditure was

1made, and the percentage of the total amount of the investment pool which each such
2expenditure represents.
AB531-ASA1, s. 81 3Section 81. 560.35 (3) of the statutes is amended to read:
AB531-ASA1,31,194 560.35 (3) Financial statements. Within 90 days of the end of the certified
5capital company's fiscal year, the certified capital company shall provide to the
6department a copy of its annual audited financial statements, including the opinion
7of an independent certified public accountant, and a copy of a report on agreed-upon
8procedures prepared by an independent certified public accountant
. The audit shall
9address agreed-upon-procedures report shall identify the procedures performed by
10the certified capital company, as prescribed by the department, that relate to
the
11methods of operation and conduct of the business of the certified capital company to
12enable the department to determine whether the certified capital company is
13complying with this subchapter and the rules promulgated under this subchapter,
14including whether certified capital has been invested in the manner required under
15s. 560.34. The financial statements and agreed-upon-procedures report provided
16under this subsection shall be segregated by investment pool and shall be separately
17audited on that basis
to allow the department to determine whether the certified
18capital company is in compliance with s. 560.34 (1m) this subchapter and the rules
19promulgated under this subchapter
.
AB531-ASA1, s. 82 20Section 82. 560.36 (intro.) of the statutes is renumbered 560.36 (1) (intro.) and
21amended to read:
AB531-ASA1,31,2322 560.36 (1) (intro.) A Except as provided in sub. (2), a certified capital company
23may make a distribution only if one of the following conditions is met:
AB531-ASA1, s. 83 24Section 83. 560.36 (1) to (4) of the statutes are renumbered 560.36 (1) (a) to
25(d) and 560.36 (1) (c), as renumbered, is amended to read:
Loading...
Loading...