Jobs Now Fund Certification
Any person may apply to become a certified jobs now fund. The authority must
certify an applicant if the applicant pays an application fee in an amount determined
by the authority and the authority determines that the applicant meets all of the
following requirements:
1. The primary activity of the applicant is the investment of cash in certain
kinds of businesses.
2. The applicant owns at least $500,000 in unencumbered cash or cash
equivalents.
3. The applicant has at least two principals or investment managers who have
at least five years of experience in the venture capital or private equity industry.
4. The applicant's strategic investment plan will benefit Wisconsin's economy.
Participating Investors
The bill provides that any insurance company or other person subject to
premium tax liability may apply to the authority to invest in a certified jobs now
fund. The bill directs the authority to establish a single 15-day period in which such
applications may be submitted. The authority must give reasonable notice to
potential applicants in advance of that application period.
A person for whom the authority has approved an investment is called a
"participating investor" under the bill. If the authority approves an investment, the
participating investor may claim up to 80 percent of the amount of its investment as
a credit against the participating investor's premium tax liability. The authority
may not award more than $200,000,000 in premium tax credits under the program.
The authority may not award more than $50,000,000 in premium tax credits to a
participating investor at any one time. The authority must begin approving
investments and awarding corresponding tax credits within 90 days after the bill
becomes effective.
Additionally, under the bill, a participating investor may not claim a premium
tax credit until after it has made an approved investment in a certified jobs now fund
and may not claim a premium tax credit before January 1, 2014. A participating
investor may not claim more than 25 percent of its approved premium tax credit in
one year, but the premium tax credit may be carried forward until fully used. A
participating investor may sell or otherwise transfer a premium tax credit awarded
by the authority to another insurance company or other person subject to premium
tax liability. A participating investor must report that sale or transfer to the
authority and the commissioner of insurance.
Qualified Businesses
Once it receives investment capital from a participating investor, the bill
authorizes a certified jobs now fund to invest that capital only in certain kinds of
businesses, called "qualified businesses" under the bill. In particular, a qualified
business is a business that meets all of the following conditions:
1. The business's headquarters are in Wisconsin.
2. The business is in need of venture capital and is unable to obtain
conventional financing.
3. The business employs 100 or fewer employees, and at least 80 percent of
those employees are employed in this state, or at least 80 percent of the business's
payroll is paid to employees employed in this state.
4. The business is not primarily engaged in real estate development or sales,
insurance, banking, lending, lobbying, political consulting, professional services, or
retail sales, other than direct sales of products the business itself manufactures.
Also under the bill, in order to receive certified jobs fund investments, a
qualified business must agree not to relocate its headquarters outside of Wisconsin
and to maintain at least 75 percent of its employees in Wisconsin, or pay at least 75
percent of its payroll to employees in Wisconsin, as long as the certified jobs now fund
continues to hold the investment.
Investments in Qualified Businesses
Under the bill, a certified jobs now fund is required to make investments in
qualified businesses based on a specific investment schedule, and after seven years,
a certified jobs now fund must have placed 100 percent of its capital received from
a participating investor with qualified businesses, at least 50 percent of which must
be invested in qualified businesses with gross revenue of $2,000,000 or less in the
fiscal year immediately preceding the date of investment. If a certified jobs now fund
fails to satisfy the investment schedule, it may be required to refrain from paying any
management or similar fee until required investments are made. Under the bill, a
certified jobs now fund may not invest more than 15 percent of its total capital
received from participating investors in any one qualified business.
Distributions from Qualified Investments; Profit Sharing Fee
Under the bill, a certified jobs now fund is also limited in the distributions from
investments that it may make before it has invested all of its capital received from
a participating investor in qualified businesses. However, a certified jobs now fund
may make a distribution of any kind once it has invested 100 percent of its capital
received from a participating investor in qualified businesses, at least 50 percent of
which is invested in qualified businesses with gross revenue of $2,000,000 or less in
the fiscal year immediately preceding the date of investment. When such a
distribution is made, the certified jobs now fund must pay to the authority a 20
percent profit sharing fee, which the authority then remits to the state for deposit
in the general fund.
Annual Review by Authority
The bill provides that by January 31 of each year, a certified jobs now fund must
submit a report to the authority that describes in detail the certified jobs now fund's
investments in qualified businesses, including its progress with respect to the
investment schedule required under the bill and any distributions the certified jobs
now fund has made from those investments. The authority is required to complete
an annual review of each certified jobs now fund to ensure that each certified jobs
now fund is in full compliance with the bill. Additionally, within 90 days after the
end of a certified jobs now fund's fiscal year, the certified jobs now fund must file with
the authority a copy of its annual audited financial statement, including the opinion
of an independent certified public accountant. The authority charges each jobs now
fund an annual certification renewal fee of $5,000.
Decertification; Penalties for Noncompliance
The authority may decertify a certified jobs now fund that violates the
requirements of the bill. In the event of decertification, a participating investor may
be required to repay to the commissioner of insurance the amount of any credit
against premium tax liability that the participating investor received based on its
investment of capital in the decertified jobs now fund. The bill also authorizes the
authority to fine a person who violates the bill's provisions up to $25,000 depending
on the circumstances of the violation.
Reporting Requirements
Finally, the bill requires that the authority include in its annual report to the
legislature and the governor all of the following information specifically relating to
the certified jobs now fund program:
1. The information that each certified jobs now fund is required to report to the
authority on an annual basis, including the number of new employees hired by
businesses in which each certified jobs now fund has invested.
2. An accounting of the withholding tax revenue received by the authority from
qualified businesses that have received an investment of capital contributed by a
participating investor from a certified jobs now fund.
3. An accounting of the value of the premium tax credits the authority awarded
during the preceding year.
4. An accounting of each profit sharing fee received by the authority in the
preceding year.
5. A list of any decertified jobs now funds from the preceding year and a
description of the circumstances leading to each decertification.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB94,9,23
1.12
(1) (b) "State agency" means an office, department, agency, institution of
4higher education, the legislature, a legislative service agency, the courts, a judicial
5branch agency, an association, society, or other body in state government that is
6created or authorized to be created by the constitution or by law, for which
7appropriations are made by law, excluding the Health Insurance Risk-Sharing Plan
1Authority
, the Wisconsin Venture Capital Authority, and the Wisconsin Economic
2Development Corporation.
SB94,9,105
13.172
(1) In this section, "agency" means an office, department, agency,
6institution of higher education, association, society, or other body in state
7government created or authorized to be created by the constitution or any law, that
8is entitled to expend moneys appropriated by law, including the legislature and the
9courts, and any authority created in subch. II of ch. 114 or subch. III of ch. 149 or in
10ch. 231, 233, 234, 238,
239, or 279.
SB94,9,2513
13.48
(13) (a) Except as provided in par. (b) or (c), every building, structure or
14facility that is constructed for the benefit of or use of the state, any state agency,
15board, commission or department, the University of Wisconsin Hospitals and Clinics
16Authority, the Fox River Navigational System Authority,
the Wisconsin Venture
17Capital Authority, the Wisconsin Economic Development Corporation, or any local
18professional baseball park district created under subch. III of ch. 229 if the
19construction is undertaken by the department of administration on behalf of the
20district, shall be in compliance with all applicable state laws, rules, codes and
21regulations but the construction is not subject to the ordinances or regulations of the
22municipality in which the construction takes place except zoning, including without
23limitation because of enumeration ordinances or regulations relating to materials
24used, permits, supervision of construction or installation, payment of permit fees, or
25other restrictions.
SB94,10,73
13.62
(2) "Agency" means any board, commission, department, office, society,
4institution of higher education, council, or committee in the state government, or any
5authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 232, 233,
6234, 237, 238,
239, or 279, except that the term does not include a council or
7committee of the legislature.
SB94, s. 5
8Section
5. 13.94 (1) (dx) of the statutes is created to read:
SB94,10,139
13.94
(1) (dx) Biennially, beginning in 2013, conduct a financial audit of the
10Wisconsin Venture Capital Authority and a program evaluation audit of the
11programs administered by the Wisconsin Venture Capital Authority under ch. 239.
12The legislative audit bureau shall file a copy of each audit report under this
13paragraph with the distributees specified in par. (b).
SB94,10,2516
13.94
(1) (mm) No later than July 1, 2012, prepare a financial and performance
17evaluation audit of the economic development programs administered by the
18department of commerce, the University of Wisconsin System, the department of
19agriculture, trade and consumer protection, the department of natural resources, the
20Wisconsin Housing and Economic Development Authority,
the Wisconsin Venture
21Capital Authority, the Wisconsin Economic Development Corporation, the
22department of tourism, the technical college system, and the department of
23transportation. In this paragraph, economic development program has the meaning
24given in s. 560.001 (1m). The legislative audit bureau shall file a copy of the report
25of the audit under this paragraph with the distributees specified in par. (b).
SB94, s. 7
1Section
7. 13.94 (1s) (c) 6. of the statutes is created to read:
SB94,11,32
13.94
(1s) (c) 6. The Wisconsin Venture Capital Authority for the cost of the
3audit required to be performed under sub. (1) (dx).
SB94,11,226
13.94
(4) (a) 1. Every state department, board, examining board, affiliated
7credentialing board, commission, independent agency, council or office in the
8executive branch of state government; all bodies created by the legislature in the
9legislative or judicial branch of state government; any public body corporate and
10politic created by the legislature including specifically the Fox River Navigational
11System Authority, the Lower Fox River Remediation Authority, the Wisconsin
12Aerospace Authority,
the Wisconsin Venture Capital Authority,
and the Wisconsin
13Economic Development Corporation, a professional baseball park district, a local
14professional football stadium district, a local cultural arts district
, and a long-term
15care district under s. 46.2895; every Wisconsin works agency under subch. III of ch.
1649; every provider of medical assistance under subch. IV of ch. 49; technical college
17district boards; every county department under s. 51.42 or 51.437; every nonprofit
18corporation or cooperative or unincorporated cooperative association to which
19moneys are specifically appropriated by state law; and every corporation, institution,
20association or other organization which receives more than 50% of its annual budget
21from appropriations made by state law, including subgrantee or subcontractor
22recipients of such funds.
SB94,12,14
113.95 Legislative fiscal bureau. (intro.) There is created a bureau to be
2known as the "Legislative Fiscal Bureau" headed by a director. The fiscal bureau
3shall be strictly nonpartisan and shall at all times observe the confidential nature
4of the research requests received by it; however, with the prior approval of the
5requester in each instance, the bureau may duplicate the results of its research for
6distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's
7designated employees shall at all times, with or without notice, have access to all
8state agencies, the University of Wisconsin Hospitals and Clinics Authority, the
9Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
10the Lower Fox River Remediation Authority,
the Wisconsin Venture Capital
11Authority, the Wisconsin Economic Development Corporation, and the Fox River
12Navigational System Authority, and to any books, records, or other documents
13maintained by such agencies or authorities and relating to their expenditures,
14revenues, operations, and structure.
SB94,12,2117
16.002
(2) "Departments" means constitutional offices, departments, and
18independent agencies and includes all societies, associations, and other agencies of
19state government for which appropriations are made by law, but not including
20authorities created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 232,
21233, 234, 235, 237, 238,
239, or 279.
SB94,13,424
16.004
(4) Freedom of access. The secretary and such employees of the
25department as the secretary designates may enter into the offices of state agencies
1and authorities created under subch. II of ch. 114 and subch. III of ch. 149 and under
2chs. 231, 233, 234, 237, 238,
239, and 279, and may examine their books and accounts
3and any other matter that in the secretary's judgment should be examined and may
4interrogate the agency's employees publicly or privately relative thereto.
SB94,13,117
16.004
(5) Agencies and employees to cooperate. All state agencies and
8authorities created under subch. II of ch. 114 and subch. III of ch. 149 and under chs.
9231, 233, 234, 237, 238,
239, and 279, and their officers and employees, shall
10cooperate with the secretary and shall comply with every request of the secretary
11relating to his or her functions.
SB94,13,2214
16.004
(12) (a) In this subsection, "state agency" means an association,
15authority, board, department, commission, independent agency, institution, office,
16society, or other body in state government created or authorized to be created by the
17constitution or any law, including the legislature, the office of the governor, and the
18courts, but excluding the University of Wisconsin Hospitals and Clinics Authority,
19the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan
20Authority, the Lower Fox River Remediation Authority, the Wisconsin Economic
21Development Corporation,
the Wisconsin Venture Capital Authority, and the Fox
22River Navigational System Authority.
SB94,14,6
116.045
(1) (a) "Agency" means an office, department, independent agency,
2institution of higher education, association, society, or other body in state
3government created or authorized to be created by the constitution or any law, that
4is entitled to expend moneys appropriated by law, including the legislature and the
5courts, but not including an authority created in subch. II of ch. 114 or subch. III of
6ch. 149 or in ch. 231, 232, 233, 234, 235, 237, 238,
239, or 279.
SB94,14,139
16.15
(1) (ab) "Authority" has the meaning given under s. 16.70 (2), but
10excludes the University of Wisconsin Hospitals and Clinics Authority, the Lower Fox
11River Remediation Authority, the Wisconsin Economic Development Corporation,
12the Wisconsin Venture Capital Authority, and the Health Insurance Risk-Sharing
13Plan Authority.
SB94,14,1716
16.41
(4) In this section, "authority" means a body created under subch. II of
17ch. 114 or subch. III of ch. 149 or under ch. 231, 233, 234, 237, 238,
239, or 279.
SB94,14,2120
16.417
(1) (b) "Authority" means a body created under subch. II of ch. 114 or
21ch. 231, 232, 233, 234, 235, 237, 239, or 279.
SB94, s. 18
22Section
18
. 16.417 (1) (b) of the statutes, as affected by 2011 Wisconsin Act ....
23(this act), is amended to read:
SB94,14,2524
16.417
(1) (b) "Authority" means a body created under subch. II of ch. 114 or
25ch. 231, 232, 233, 234, 235, 237,
238, 239, or 279.
SB94,15,133
16.52
(7) Petty cash account. With the approval of the secretary, each agency
4that is authorized to maintain a contingent fund under s. 20.920 may establish a
5petty cash account from its contingent fund. The procedure for operation and
6maintenance of petty cash accounts and the character of expenditures therefrom
7shall be prescribed by the secretary. In this subsection, "agency" means an office,
8department, independent agency, institution of higher education, association,
9society, or other body in state government created or authorized to be created by the
10constitution or any law, that is entitled to expend moneys appropriated by law,
11including the legislature and the courts, but not including an authority created in
12subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, 237, 238,
239, or
13279.
SB94,15,2116
16.528
(1) (a) "Agency" means an office, department, independent agency,
17institution of higher education, association, society, or other body in state
18government created or authorized to be created by the constitution or any law, that
19is entitled to expend moneys appropriated by law, including the legislature and the
20courts, but not including an authority created in subch. II of ch. 114 or subch. III of
21ch. 149 or in ch. 231, 233, 234, 237, 238,
239, or 279.
SB94,16,724
16.53
(2) Improper invoices. If an agency receives an improperly completed
25invoice, the agency shall notify the sender of the invoice within 10 working days after
1it receives the invoice of the reason it is improperly completed. In this subsection,
2"agency" means an office, department, independent agency, institution of higher
3education, association, society, or other body in state government created or
4authorized to be created by the constitution or any law, that is entitled to expend
5moneys appropriated by law, including the legislature and the courts, but not
6including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch.
7231, 233, 234, 237, 238,
239, or 279.
SB94,16,1510
16.54
(9) (a) 1. "Agency" means an office, department, independent agency,
11institution of higher education, association, society or other body in state
12government created or authorized to be created by the constitution or any law, which
13is entitled to expend moneys appropriated by law, including the legislature and the
14courts, but not including an authority created in subch. II of ch. 114 or subch. III of
15ch. 149 or in ch. 231, 233, 234, 237, 238,
239, or 279.
SB94,17,418
16.765
(1) Contracting agencies, the University of Wisconsin Hospitals and
19Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
20Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
21Fox River Remediation Authority,
the Wisconsin Venture Capital Authority, the
22Wisconsin Economic Development Corporation, and the Bradley Center Sports and
23Entertainment Corporation shall include in all contracts executed by them a
24provision obligating the contractor not to discriminate against any employee or
25applicant for employment because of age, race, religion, color, handicap, sex, physical
1condition, developmental disability as defined in s. 51.01 (5), sexual orientation as
2defined in s. 111.32 (13m), or national origin and, except with respect to sexual
3orientation, obligating the contractor to take affirmative action to ensure equal
4employment opportunities.
SB94,17,247
16.765
(2) Contracting agencies, the University of Wisconsin Hospitals and
8Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
9Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
10Fox River Remediation Authority,
the Wisconsin Venture Capital Authority, the
11Wisconsin Economic Development Corporation, and the Bradley Center Sports and
12Entertainment Corporation shall include the following provision in every contract
13executed by them: "In connection with the performance of work under this contract,
14the contractor agrees not to discriminate against any employee or applicant for
15employment because of age, race, religion, color, handicap, sex, physical condition,
16developmental disability as defined in s. 51.01 (5), sexual orientation or national
17origin. This provision shall include, but not be limited to, the following: employment,
18upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or
19termination; rates of pay or other forms of compensation; and selection for training,
20including apprenticeship. Except with respect to sexual orientation, the contractor
21further agrees to take affirmative action to ensure equal employment opportunities.
22The contractor agrees to post in conspicuous places, available for employees and
23applicants for employment, notices to be provided by the contracting officer setting
24forth the provisions of the nondiscrimination clause".
SB94,18,203
16.765
(5) The head of each contracting agency and the boards of directors of
4the University of Wisconsin Hospitals and Clinics Authority, the Fox River
5Navigational System Authority, the Wisconsin Aerospace Authority, the Health
6Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation
7Authority,
the Wisconsin Venture Capital Authority, the Wisconsin Economic
8Development Corporation, and the Bradley Center Sports and Entertainment
9Corporation shall be primarily responsible for obtaining compliance by any
10contractor with the nondiscrimination and affirmative action provisions prescribed
11by this section, according to procedures recommended by the department. The
12department shall make recommendations to the contracting agencies and the boards
13of directors of the University of Wisconsin Hospitals and Clinics Authority, the Fox
14River Navigational System Authority, the Wisconsin Aerospace Authority, the
15Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation
16Authority,
the Wisconsin Venture Capital Authority, the Wisconsin Economic
17Development Corporation, and the Bradley Center Sports and Entertainment
18Corporation for improving and making more effective the nondiscrimination and
19affirmative action provisions of contracts. The department shall promulgate such
20rules as may be necessary for the performance of its functions under this section.
SB94,19,723
16.765
(6) The department may receive complaints of alleged violations of the
24nondiscrimination provisions of such contracts. The department shall investigate
25and determine whether a violation of this section has occurred. The department may
1delegate this authority to the contracting agency, the University of Wisconsin
2Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
3Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
4the Lower Fox River Remediation Authority,
the Wisconsin Venture Capital
5Authority, the Wisconsin Economic Development Corporation, or the Bradley Center
6Sports and Entertainment Corporation for processing in accordance with the
7department's procedures.