AB129,42,2
1(2) "Fund creditor" means any holder of a note or bond of the authority under
2this subchapter.
AB129,42,5 3(3) "Debt service obligation" means the authority's obligation, including any
4payment schedule, to pay principal and interest or other financing costs to a creditor
5on a note or bond the authority issues under this subchapter.
AB129,42,6 6(4) "Fund" means the badger jobs fund.
AB129,42,12 7239.11 Creation of fund; management. (1) Fund purpose. There is created
8a fund to be known as the "badger jobs fund" for the investment of capital in certified
9investors. The legislature finds that the fund will provide capital for business growth
10and job creation in this state that is currently not sufficiently available in private
11financial markets and that the fund will result in increased tax revenues to the state
12and serve a public purpose.
AB129,42,14 13(2) Bonding; debt service. (a) The authority may issue, by resolution, up to
14$200,000,000 in negotiable bonds or notes of any kind to finance the fund.
AB129,42,1815 (b) The state is not liable for a debt service obligation of the authority. The
16authority's debt is not a debt of the state, and the authority may not create a debt of
17the state. Each note or bond of the authority shall contain on its face a statement
18to that effect.
AB129,42,2219 (c) Recognizing its moral obligation to do so, the legislature hereby expresses
20its expectation and aspiration that, if ever called upon to do so, it shall make an
21appropriation to pay a fund creditor the amount the authority fails to pay or
22otherwise satisfy under its debt service obligation to that creditor.
AB129,43,223 (d) Neither the members of the board nor any person executing the notes or
24bonds is liable personally on the notes or bonds or subject to any personal liability

1or accountability by reason of the issuance of the notes or bonds, unless the personal
2liability or accountability is the result of willful misconduct.
AB129,43,18 3(3) Notice regarding bond limit; dissolution of the fund. (a) The chairperson
4of the board shall promptly notify the joint committee on finance in writing when the
5authority has reached its bond limit under sub. (2) (a) and has satisfied 90 percent
6of its total debt service obligation to fund creditors. Once the authority satisfies 100
7percent of its total debt service obligation to fund creditors, the chairperson of the
8board shall promptly provide a 2nd notice to the joint committee on finance stating
9that the authority has satisfied 100 percent of its total debt service obligation to fund
10creditors and that the authority intends to dissolve the fund. If, within 14 working
11days after the date of that 2nd notice, the cochairpersons of the committee do not
12notify the authority that the committee has scheduled a meeting to review
13dissolution of the fund, the authority shall dissolve the fund and liquidate all of the
14fund's assets and pay the proceeds of that liquidation to the secretary of
15administration for deposit in the general fund. If, within 14 working days after the
16date of that 2nd notice, the cochairpersons of the committee notify the authority that
17the committee has scheduled a meeting to review dissolution of the fund, the
18authority may dissolve the fund only upon approval of the committee.
AB129,44,219 (b) The authority may reinvest amounts that it receives as returns from its
20investments in certified investors only if the authority has reached the bond limit
21under sub. (2) (a), the authority has satisfied 100 percent of its total debt service
22obligation to fund creditors, and the joint committee on finance schedules a meeting
23to consider dissolution of the fund under par. (a) but does not approve dissolution of
24the fund. Any reinvestment by the authority under this paragraph shall meet the

1requirements under this subchapter with respect to the authority's investments in
2certified investors.
AB129,44,53 (c) If the authority dissolves the fund under par. (a), the authority shall pay to
4the secretary of administration for deposit in the general fund any additional
5amounts the authority receives from certified investors after the fund is dissolved.
AB129,44,13 6(4) Fund manager. (a) The authority shall hire a fund manager who has
7expertise in the venture capital or private equity asset class to manage the fund's
8investment of capital in certified investors. In reviewing candidates for fund
9manager, the authority shall consider a candidate's venture capital or private equity
10asset class experience, investment philosophy, and the performance of any
11investments in the venture capital asset class managed by the candidate, as well as
12any other criteria the authority considers relevant. The fund manager may not be
13a certified investor.
AB129,44,1714 (b) The authority may pay the fund manager an annual management fee. That
15management fee may not equal more than 0.5 percent of the fund's total assets
16including amount of capital that the authority has raised, committed to, or invested
17in, certified investors.
AB129,44,21 18239.12 Investor certification. (1) Application. Any person may apply to the
19authority on a form prescribed by the authority for certification under this section.
20The application shall include the name, address, and tax identification number of the
21person and any other information the authority requires.
AB129,44,24 22(2) Certification. The authority may certify an applicant who submits an
23application under sub. (1) to receive fund capital for investment. In determining
24whether to certify an applicant, the authority shall consider:
AB129,45,2
1(a) The applicant's venture capital experience or other experience that qualifies
2the applicant to receive fund capital.
AB129,45,33 (b) The past performance of investments managed by the applicant.
AB129,45,44 (c) The applicant's commitment to investing in businesses within this state.
AB129,45,65 (d) The applicant's commitment to making seed or early stage business
6investments.
AB129,45,87 (e) Whether the applicant is located in this state or will locate and maintain an
8office in this state as a condition of the applicant's certification under this section.
AB129,45,109 (f) Any other factors the authority considers relevant that are consistent with
10the authorities responsibilities under this subchapter.
AB129,45,12 11(3) Application fee. An applicant for certification under sub. (1) shall pay to
12the authority a fee in the amount determined by the authority.
AB129,45,17 13239.13 Investment of capital in certified investors; requirements. (1)
14Investment policy. The fund manager shall establish, and amend as appropriate,
15a fund investment policy. The authority shall review and approve the investment
16policy prior to the policy's implementation and shall review the policy and any
17amendments at least annually thereafter.
AB129,45,21 18(2) Fund investments. The authority may invest capital under this subchapter
19only in certified investors. The authority may not commit more than 15 percent of
20the total capital that the authority is authorized to raise under s. 239.11 (2) (a) to a
21single certified investor.
AB129,45,25 22(3) Contracts. Before the authority invests any capital in a certified investor,
23the authority shall contract with the certified investor, and in addition to any other
24terms required or negotiated by the authority, that contract shall include the
25following requirements:
AB129,46,3
1(a) The certified investor shall commit to maintaining a significant physical
2presence in this state, including locating an office in this state that is staffed with
3at least one full-time employee of the certified investor.
AB129,46,74 (b) The certified investor shall invest at least 50 percent of the amount of capital
5the certified investor receives from the fund in a business that meets all of the
6following conditions at the time the certified investor first invests in the business
7under this section:
AB129,46,88 1. Is headquartered in this state.
AB129,46,109 2. Employs at least 50 percent of its employees, including any subsidiary or
10other affiliated entity, in this state.
AB129,46,1311 3. Agrees to use fund capital only for research and development, the
12introduction of a new product in the market, the business's entry into a new market,
13or other activities that are expected to grow the business and create jobs in this state.
AB129,46,1614 4. Is not primarily engaged in real estate development or sales, insurance,
15banking, lending, lobbying, political consulting, professional services, or retail sales,
16other than direct sales of products the business itself manufactures.
AB129,46,1817 (c) The certified investor may not receive capital from the fund that exceeds 25
18percent of the total capital the investor has raised from all sources.
AB129,46,2119 (d) When a certified investor makes an investment of fund capital in a business,
20the certified investor shall at least match the fund's capital contribution to that
21investment with capital the certified investor has raised from other sources.
AB129,46,2322 (e) The certified investor may not apply the amount of capital it receives from
23the fund toward certification under s. 560.205 (1) or (2).
AB129,46,25 24(4) Sunset. The authority may not make a commitment to invest capital in a
25certified investor under this subchapter after December 31, 2015.
AB129,47,5
1239.14 Tax credits to fund creditors. (1) In lieu of payment of its debt
2service obligation to a fund creditor, the authority may contract with a fund creditor
3to award a tax credit under s. 71.07 (8s), 71.28 (8s), or 71.47 (8s) to the fund creditor
4up to an amount equal to the amount the authority is unable to pay the creditor under
5the authority's debt service obligation to the creditor in a taxable year.
AB129,47,11 6(2) A contract under sub. (1) shall set forth the terms and conditions under
7which the fund creditor may claim a tax credit under this section. A fund creditor
8may not claim a tax credit that exceeds the amount the authority fails to pay under
9the authority's debt service obligation to the fund creditor. The authority shall certify
10to the department of revenue the amount of the tax credit a creditor of the fund may
11claim under this section.
AB129,47,14 12(3) The authority may not award a tax credit under this section that may be
13claimed before January 1, 2016. The authority may not award tax credits under this
14section that total more than $300,000,000.
AB129,47,1515 subchapter iiI
AB129,47,1616 certified jobs now funds
AB129,47,17 17239.20 Definitions. In this subchapter:
AB129,47,18 18(1) "Affiliate" means any of the following:
AB129,47,2119 (a) A person who owns, controls, or holds power to vote 15 percent or more of
20the outstanding voting securities or other voting interests of a certified jobs now fund
21or an insurance company or other person subject to premium tax liability.
AB129,47,2522 (b) A business, 15 percent of whose outstanding voting securities or other
23voting ownership interests are owned, controlled, or held with power to vote by a
24certified jobs now fund or an insurance company or other person subject to premium
25tax liability.
AB129,48,3
1(c) A person who controls, is controlled by, or is under common control with a
2certified jobs now fund or an insurance company or other person subject to premium
3tax liability.
AB129,48,64 (d) A business in which a certified jobs now fund or an insurance company or
5other person subject to premium tax liability is a partner, managing member, or
6other principal.
AB129,48,97 (e) An officer, director, employee, or agent of a certified jobs now fund or an
8insurance company or other person subject to premium tax liability, or an immediate
9family member of the officer, director, employee, or agent.
AB129,48,12 10(2) "Allocation date" means the date stated in the authority's notice under s.
11239.22 (2) (b) that approves a specific amount of designated capital and awards a
12corresponding premium tax credit to a participating investor.
AB129,48,14 13(3) "Certified jobs now fund" or "fund" means an entity that is certified under
14s. 239.21.
AB129,48,21 15(4) "Designated capital" means an investment of cash by a participating
16investor in a certified jobs now fund that is approved by the authority under s. 239.22
17and that fully funds either the participating investor's equity interest in a certified
18jobs now fund, a qualified debt instrument that a certified jobs now fund issues, or
19both. In this subsection, "qualified debt instrument" means a bond, note, or other
20obligation that a certified jobs now fund issues at par value or at a premium or
21discount from par value that meets all of the following conditions:
AB129,48,2322 (a) Has an original maturity date of at least 4 years from the date on which it
23is issued.
AB129,48,2524 (b) Has a repayment schedule that is no faster than a level principal
25amortization over 4 years.
AB129,49,1
1(c) Does not allow the prepayment of interest.
AB129,49,32 (d) Has payment and interest features that are not related to the fund's
3profitability or the performance of the fund's investment portfolio.
AB129,49,6 4(5) "Early stage business" means a qualified business that received, including
5any affiliate, gross revenue of $2,000,000 or less in the fiscal year immediately
6preceding that date.
AB129,49,9 7(6) "Participating investor" means an insurance company or other person
8subject to premium tax liability who the authority approves to invest designated
9capital in a certified jobs now fund under s. 239.22.
AB129,49,10 10(7) "Premium tax credit" means a tax credit under s. 76.634.
AB129,49,12 11(8) "Premium tax liability" means the fees imposed under s. 76.60, 76.63, 76.65,
1276.66, or 76.67.
AB129,49,15 13(9) "Qualified business" means a business that, as of the time a certified jobs
14now fund or its affiliate first invests in the business under this subchapter, meets all
15of the following conditions:
AB129,49,1716 (a) Is headquartered in, and has its principal business operations located in,
17this state.
AB129,49,1918 (b) Is in need of venture capital and is unable to obtain conventional financing,
19as determined by the authority.
AB129,49,2220 (c) Employs 100 or fewer employees, and at least 80 percent of those employees
21are employed in this state or at least 80 percent of its payroll is paid to employees
22employed in this state.
AB129,49,2523 (d) Is not primarily engaged in real estate development or sales, insurance,
24banking, lending, lobbying, political consulting, professional services, or retail sales,
25other than direct sales of products the business itself manufactures.
AB129,50,2
1(10) "Qualified investment" means a certified jobs now fund's investment of
2designated capital in a qualified business.
AB129,50,5 3239.21 Certification of jobs now funds. (1) Application. Any person may
4apply to the authority on a form prescribed by the authority for certification under
5this section. The application shall include all of the following:
AB129,50,66 (a) The name, address, and tax identification number of the applicant.
AB129,50,87 (b) A description of the business activities conducted by the applicant and the
8locations at which those activities are conducted.
AB129,50,119 (c) An audited balance sheet and the audit report, rendered within 35 days
10prior to the date the applicant files its application with the authority, of an
11independent auditor approved by the authority.
AB129,50,1512 (d) The strategic investment plan of the applicant, and an analysis completed
13by an economist or econometric analysis company approved by the authority that
14shows the projected impact that investment plan is expected to have on the economy
15of this state.
AB129,50,18 16(2) Certification. (a) The authority shall certify an applicant under sub. (1)
17if the applicant pays the fee specified under sub. (3) and the authority determines
18after conducting an investigation that all of the following conditions are met:
AB129,50,2019 1. The primary activity of the applicant is the investment of cash in qualified
20businesses.
AB129,50,2221 2. The applicant owns at least $500,000 in unencumbered cash or cash
22equivalents.
AB129,50,2523 3. At least 2 principals or persons employed to manage the applicant's
24investments have at least 5 years of experience in the venture capital or private
25equity industry in this state.
AB129,51,2
14. The strategic investment plan of the applicant will have a beneficial impact
2on the economy of this state.
AB129,51,63 (b) Within 30 days after the date an applicant files an application under sub.
4(1), the authority shall either issue a certification to the applicant or deny the
5application and provide written notice to the applicant that states the grounds for
6denial and includes the authority's suggestions, if any, to remove those grounds.
AB129,51,8 7(3) Application fee. An applicant for certification under sub. (1) shall pay to
8the authority a fee in the amount determined by the authority.
AB129,51,13 9239.22 Participating investors; premium tax credits. (1) Application.
10(a) Any insurance company or other person subject to premium tax liability may
11apply to the authority to make an investment of designated capital in a certified jobs
12now fund and receive a premium tax credit for that investment. The person's
13application shall include all of the following:
AB129,51,1414 1. The person's name, address, and tax identification number.
AB129,51,1615 2. The name and address of the certified jobs now fund in which the person
16proposes to invest.
AB129,51,1717 3. The amount of the proposed investment.
AB129,51,2018 4. An undertaking by the person to make an investment of designated capital
19in the amount approved by the authority within 5 business days after the allocation
20date established by the authority under sub. (2) (b).
AB129,51,2521 (b) The authority shall establish a single 15-day period in which applications
22under par. (a) may be submitted to the authority. The authority shall provide a notice
23regarding that application period and the investment program under this
24subchapter that is reasonably calculated to reach all insurance companies or other
25persons subject to premium tax liability within this state.
AB129,52,2
1(c) The authority may establish additional rules consistent with this
2subchapter regarding the requirements for an application under par. (a).
AB129,52,6 3(2) Award. (a) The authority shall approve an investment of designated capital
4in a certified jobs now fund and, subject to sub. (4) (b), award a premium tax credit
5to a person who satisfies the application requirements under sub. (1) in an amount
6equal to 80 percent of the person's proposed investment of designated capital.
AB129,52,127 (b) If the authority approves a person's proposed investment of designated
8capital under par. (a), the authority shall notify the person and the certified jobs now
9fund of that approval in writing, stating the amount of the investment approved by
10the authority, the amount of the premium tax credit the person may claim, the
11requirements, including those under sub. (3), for making that claim, and the
12allocation date.
AB129,52,1613 (c) The authority may not set an allocation date that is earlier than 30 days
14after the date of the authority's notice of approval of an investment under par. (b).
15The first allocation date set by the authority for any participating investor may not
16be later than 120 days after the effective date of this paragraph .... [LRB inserts date].
AB129,52,20 17(3) Claim eligibility and requirements. (a) A participating investor may claim
18a premium tax credit in the amount the authority awards only after the participating
19investor makes an investment of designated capital in the certified jobs now fund in
20the amount approved by the authority under sub. (2).
AB129,52,2521 (b) A participating investor may claim up to 25 percent of the premium tax
22credit approved under sub. (2) in a taxable year, except that a participating investor
23may not claim any premium tax credit under this subchapter for a taxable year
24beginning before January 1, 2014, and a premium tax credit may not be applied to
25quarterly tax payments due during the 2014 taxable year.
AB129,53,2
1(4) Limits on premium tax credits. (a) The authority may not award more than
2$200,000,000 in premium tax credits under this subchapter.
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