AB733: Bill Text

AB733,18,5 71.30 (12) Business seed fund designation. Subject to the limitations provided under subch. II of ch. 239, a financial institution, as defined in s. 239.10 (1), may, when submitting its estimated payments under this subchapter, designate that up to 80 percent of its estimated payment be deposited into the business seed fund created under subch. II of ch. 239.

AB733, s. 37 Section 37. 100.45 (1) (dm) of the statutes, as affected by 2011 Wisconsin Act 10, is amended to read:

AB733,18,17 100.45 (1) (dm) "State agency" means any office, department, agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law which is entitled to expend moneys appropriated by law, including the legislature and the courts, the Wisconsin Housing and Economic Development Authority, the Bradley Center Sports and Entertainment Corporation, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, the Wisconsin Seed Fund Authority, and the Fox River Navigational System Authority.

AB733, s. 38 Section 38. 101.177 (1) (d) of the statutes, as affected by 2011 Wisconsin Act 10, is amended to read:

AB733,19,5 101.177 (1) (d) "State agency" means any office, department, agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, the Wisconsin Housing and Economic Development Authority, the Bradley Center Sports and Entertainment Corporation, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, the Wisconsin Seed Fund Authority, and the Wisconsin Health and Educational Facilities Authority, but excluding the Health Insurance Risk-Sharing Plan Authority and the Lower Fox River Remediation Authority.

AB733, s. 39 Section 39. 230.03 (3) of the statutes, as affected by 2011 Wisconsin Acts 10 and 32, is amended to read:

AB733,19,17 230.03 (3) "Agency" means any board, commission, committee, council, or department in state government or a unit thereof created by the constitution or statutes if such board, commission, committee, council, department, unit, or the head thereof, is authorized to appoint subordinate staff by the constitution or statute, except the Board of Regents of the University of Wisconsin System, a legislative or judicial board, commission, committee, council, department, or unit thereof or an authority created under subch. II of ch. 114 or subch. III of ch. 149 or under ch. 231, 232, 233, 234, 235, 237, 238, 239, or 279. "Agency" does not mean any local unit of government or body within one or more local units of government that is created by law or by action of one or more local units of government.

AB733, s. 40 Section 40. Chapter 239 of the statutes is created to read:

AB733,19,21 Chapter 239 WISCONSIN seed fund AUTHORITY

AB733,19,23 Subchapter I General provisions

AB733,19,24 239.01 Definitions. In this chapter, except as otherwise provided:

AB733,19,25 (1) "Authority" means the Wisconsin Seed Fund Authority.

AB733,20,1 (2) "Board" means the board of directors of the authority.

AB733,20,4 239.02 Creation and organization of authority. (1) There is created a public body corporate and politic to be known as the "Wisconsin Seed Fund Authority." The members of the board shall consist of the following:

AB733,20,8 (a) Four persons from the private sector, at least 3 of whom shall have at least 5 years each of seed capital, investment banking, or entrepreneurial experience, nominated by the governor, and with the advice and consent of the senate appointed, for 4-year terms.

AB733,20,11 (b) One member appointed by the speaker of the assembly for a 4-year term who shall have at least 5 years of seed capital, investment banking, or entrepreneurial experience.

AB733,20,14 (c) One member appointed by the senate majority leader for a 4-year term who shall have at least 5 years of venture capital, investment banking, or entrepreneurial experience.

AB733,20,16 (d) The chief executive officer of the Wisconsin Economic Development Corporation.

AB733,20,20 (2) A majority of the members of the board constitutes a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, notwithstanding the existence of any vacancies. Action may be taken by the board upon a vote of a majority of a quorum.

AB733,20,22 (3) A vacancy on the board shall be filled in the same manner as the original appointment to the board for the remainder of the unexpired term, if any.

AB733,21,2 (4) No cause of action may arise against and no civil liability may be imposed upon a member of the board for any act or omission in the performance of the member's powers and duties under this chapter, unless the person asserting liability proves that the act or omission constitutes willful misconduct.

AB733,21,3 (5) Annually, the board shall elect a chairperson from among its members.

AB733,21,8 (6) The board may hire an executive director. The board may delegate to the executive director or any other employee of the authority any powers or duties the board considers proper. All powers and duties assigned to the authority under this chapter shall be exercised or carried out by the board, unless the board delegates the power or duty to an employee of the authority.

AB733,21,12 239.03 Powers of authority. The authority shall have all the powers necessary or convenient to carry out the purposes and provisions of this chapter. In addition to all other powers granted the authority under this chapter, the authority may specifically:

AB733,21,14 (1) Adopt, amend, and repeal any bylaws, policies, and procedures for the regulation of its affairs and the conduct of its business.

AB733,21,15 (2) Have a seal and alter the seal at pleasure.

AB733,21,16 (3) Maintain an office.

AB733,21,17 (4) Sue and be sued.

AB733,21,19 (5) Accept gifts, grants, loans, or other contributions from private or public sources.

AB733,21,21 (6) Establish the annual budget of the authority and monitor its fiscal management.

AB733,21,23 (7) Execute contracts and other instruments required for the operation of the authority.

AB733,21,25 (8) Employ any officers, agents, and employees that it may require and determine their qualifications, duties, and compensation.

AB733,22,1 (9) Issue notes, bonds, and any other obligations.

AB733,22,2 (10) Make loans.

AB733,22,3 (11) Make grants.

AB733,22,4 (12) Incur debt.

AB733,22,5 (13) Make equity and other investments.

AB733,22,6 (14) Procure liability insurance.

AB733,22,12 239.04 Liability limited. Neither the state nor any political subdivision of the state, nor any officer, employee, or agent of the state or a political subdivision of the state who is acting within the scope of employment or agency, is liable for any debt, obligation, act, or omission of the authority. A debt of the authority is not a debt of the state, and the authority may not create a debt of the state. Each note, bond, or other obligation of the authority shall contain on its face a statement to that effect.

AB733,22,13 subchapter II

AB733,22,14 Business seed fund

AB733,22,15 239.10 Definitions. In this subchapter:

AB733,22,18 (1) "Financial institution" means a bank, a savings bank, a savings and loan association, a trust company, or a credit union, whether chartered under the laws of this state, another state or territory, or under the laws of the United States.

AB733,22,19 (2) "Fund" means the business seed fund.

AB733,22,20 (3) "Fund capital" means moneys in or received from the fund.

AB733,22,22 (4) "Participant financial institution" means a financial institution that makes a contribution to the fund under s. 71.10 (5w) or 71.30 (12).

AB733,22,25 239.11 Establishment of fund. The authority shall establish a fund to be known as the "business seed fund" for making grants, loans, and investments under this subchapter.

AB733,23,4 239.12 Grants, loans, and investments. (1) Subject to sub. (2), the authority may make a grant or loan of fund capital to, or may make an investment of fund capital in, a business proposed to the authority by a participant financial institution.

AB733,23,6 (2) The authority may commit fund capital to a business under this section only if all of the following requirements are satisfied:

AB733,23,7 (a) The business is or will be headquartered in this state.

AB733,23,9 (b) The business is a seed or early stage business as determined by the authority.

AB733,23,14 (c) The participant financial institution or the business demonstrates to the satisfaction of the authority that the grant, loan, or investment in the business will assist the business to create and retain for a period of time established by the authority full-time jobs in addition to any existing full-time jobs the business already provides.

AB733,23,17 (d) Subject to sub. (3), a loan or investment made by the authority under this section shall be on terms that are substantially equivalent to the terms applicable for the business's other lenders or investors that are in the seed capital industry.

AB733,23,20 (3) The authority may share profits from a loan or investment under this section with the participant financial institution that proposes the loan or investment.

AB733,23,23 (4) The authority may require that a business receiving a grant under this section repay to the authority the amount of the grant under conditions established by the authority.

AB733,24,3 239.13 Annual report. Annually, the authority shall submit to the governor and to the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2), a report that includes all of the following:

AB733,24,5 (1) An accounting of the moneys received in the fund from participant financial institutions.

AB733,24,7 (2) An accounting of all expenditures from the fund by the authority for any purpose during the preceding year.

AB733,24,9 (3) For each business that received a grant, loan, or investment from the authority under s. 239.12, all of the following:

AB733,24,10 (a) The name and address of the business.

AB733,24,11 (b) A description of the nature of the business.

AB733,24,12 (c) The amount of the grant, loan, or investment.

AB733,24,14 (d) A description of the purposes for which the business used or is using the grant, loan, or investment.

AB733,24,19 (e) A statement of the number of employees the business employed when the business first received a grant, loan, or investment of fund capital, the number of employees the business employed on January 1 of the year preceding the year of the report, and the number of employees the business employed on December 31 of that year.

AB733,24,22 (4) A detailed assessment of the success to date of the fund and of the authority's grants, loans, and investments of fund capital in businesses under this subchapter.

AB733, s. 41 Section 41 . Nonstatutory provisions.

AB733,24,25 (1) Definition. In this section, "authority" means the Wisconsin Seed Fund Authority, as created by this act.

AB733,25,1 (2) Initial appointments.

AB733,25,11 (a) Notwithstanding the requirement of advice and consent of the senate under section 239.02 (1) (a) of the statutes, as created by this act, the initial members of the board of directors of the authority nominated by the governor under that section may be provisionally appointed by the governor, subject to later senate confirmation. Any provisional appointment shall be in full force until withdrawn by the governor or acted upon by the senate, and if confirmed by the senate shall continue for the remainder of the unexpired term of the member and until a successor is chosen and qualifies. A provisional appointee may exercise all the powers and duties of board membership to which the person is appointed during the time in which the appointee qualifies.

AB733,25,18 (b) A provisional appointment made under paragraph (a) that is withdrawn by the governor shall, upon withdrawal, lapse and create a vacancy for provisional appointment of another initial member of the board of directors or chairperson of the board of the authority. Any provisional appointment made under paragraph (a) that is rejected by the senate shall upon rejection lapse and create a vacancy for nomination and appointment of another initial board member or chairperson of the board under paragraph (a).

AB733,25,21 (c) Notwithstanding the lengths of terms specified in section 239.02 (1) of the statutes, as created by this act, the initial members of the board of directors of the authority shall be appointed for the following terms:

AB733,25,22 1. One member appointed by the governor for a term expiring on July 1, 2015.

AB733,25,25 2. One member appointed by the governor, the member appointed by the speaker of the assembly, and the member appointed by the majority leader of the senate, for terms expiring on July 1, 2016.

AB733,26,1 3. Two members appointed by the governor for terms expiring on July 1, 2017.

AB733,26,2 (End)