SE1 SB21: Bill Text

SB21,10,25 (1) "Board" means the Wisconsin next generation reserve board.

SB21,11,2 (2) "Certified bioscience company" means a person certified by the board under s. 555.03 (2).

SB21,11,5 (3) "Qualifying company" has the meaning given in s. 73.16, except that "qualifying company" does not include a business that has as its principal business activity the operation of a hospital as defined in s. 50.33 (2).

SB21,11,7 (4) "Fund" means the Wisconsin next generation reserve fund established under s. 25.90.

SB21,11,11 555.02 Wisconsin next generation reserve fund. (1) Executive director. The board shall employ an executive director who has expertise in private equity investment. In reviewing candidates for executive director, the board shall consider all of the following:

SB21,11,13 (a) The extent of the candidate's experience and expertise in private equity investment.

SB21,11,15 (b) The candidate's investment experience related to start-up bioscience companies.

SB21,11,17 (c) The candidate's experience related to seed or early stage business investments.

SB21,11,18 (d) Any other criteria the board considers relevant.

SB21,11,21 (2) Grants, loans, and investments. (a) From the appropriation under s. 20.195 (1) (q), the board may make a grant or loan to a certified bioscience company, or the board may make an investment directly in a certified bioscience company.

SB21,11,25 (b) Before the board makes a grant, loan, or investment under par. (a), the board shall contract with the certified bioscience company. In addition to any other terms required or negotiated by the board, that contract shall include all of the following conditions:

SB21,12,3 1. The certified bioscience company shall use a grant, loan, or investment provided by the board for research and development related to biotechnology or bioscience or bioscience research methods, as determined by the board by rule.

SB21,12,5 2. The certified bioscience company shall match the amount of the board's, grant, loan, or investment with moneys the company has raised from other sources.

SB21,12,8 3. Unless approved by the board, the certified bioscience company may not relocate its headquarters outside of this state during the term of the contract under this paragraph.

SB21,12,10 (c) Any moneys paid to the board by a certified bioscience company shall be deposited in the fund.

SB21,12,13 555.03 Certified bioscience companies. (1) Application. Any person may apply to the board on a form prescribed by the board for certification under this section. The application shall include all of the following:

SB21,12,14 (a) The name, address, and tax identification number of the person.

SB21,12,16 (b) A description of the principal business activities of the person and the locations at which those activities are conducted.

SB21,12,19 (c) The person's principal business activity code under the North American Industry Classification System, 2007 edition, published by the federal office of management and budget.

SB21,12,20 (d) Any other information the board requires.

SB21,12,24 (2) Certification. The board may certify a person that submits an application under sub. (1) to be eligible to receive a grant, loan, or investment under s. 555.02 if the board determines after conducting an investigation that the person meets all of the following conditions:

SB21,12,25 (a) The person is a qualifying company.

SB21,13,2 (b) The person is headquartered in, and has its principal business operations located in, this state.

SB21,13,4 (c) The person, including any affiliate, employs at least 75 percent of its employees in this state.

SB21,13,5 (d) The person is in need of capital.

SB21,13,9 (e) The person is developing biotechnology or bioscience or bioscience research methods, as determined by the board by rule and the person demonstrates to the board's satisfaction that the person has the potential to generate high levels of successful investment performance and to increase employment in this state.

SB21,13,10 (h) The person meets any other conditions established by the board.

SB21,13,12 (3) Application fee. The board may charge a fee to an applicant for certification under this section. The fee shall be deposited in the fund.

SB21,13,18 555.04 Contracting authority. Notwithstanding ss. 16.70 to 16.78, the board may enter into any contract with the investment board as provided in s. 25.17 (72) and (73), including any contract relating to the furnishing of personnel or office space, to be paid as provided in s. 25.17 (72) and (73), may procure insurance, and may execute any other contract necessary or convenient to the performance of the board's powers and duties under this chapter.

SB21, s. 16 Section 16 . Nonstatutory provisions.

SB21,13,21 (1) Definition. In subsections (2) and (3), "board" means the Wisconsin next generation reserve board.

SB21,13,22 (2) Initial appointments.

SB21,14,6 (a) Notwithstanding the requirement of advice and consent of the senate under section 15.07 (1) (a) of the statutes, the initial members of the board nominated by the governor 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 appointed 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.

SB21,14,11 (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. Any provisional appointment made under paragraph (a) that is rejected by the senate shall, upon rejection, lapse and create a vacancy for provisional appointment of another initial board member.

SB21,14,14 (c) Notwithstanding the lengths of terms specified in section 15.77 (2) of the statutes, as created by this act, the initial members of the board shall be appointed for the following terms:

SB21,14,18 1. The member appointed by the governor under section 15.77 (1) (a) of the statutes, as created by this act, and one member appointed by the governor under section 15.77 (1) (b) of the statutes, as created by this act, for terms expiring on July 1, 2014.

SB21,14,22 2. One member appointed by the governor under section 15.77 (1) (b) of the statutes, as created by this act, and the member appointed by the governor under section 15.77 (1) (c) of the statutes, as created by this act, for terms expiring on July 1, 2015.

SB21,14,24 3. The members appointed by the governor under section 15.77 (1) (d) and (e) of the statutes, as created by this act, for terms expiring on July 1, 2016.

SB21,15,4 4. The members appointed by the governor under section 15.77 (1) (f) and (g) of the statutes, as created by this act, and the member appointed by BioForward, Inc., under section 15.77 (1) (h) of the statutes, as created by this act, for terms expiring on July 1, 2017.

SB21,15,8 (3) Position authorization. There is authorized for the board 1.0 FTE SEG executive director position and 1.0 FTE SEG administrative assistant position to be funded from the appropriation under section 20.195 (1) (q) of the statutes, as created by this act, or from any loan under subsection (4 ), or both.

SB21,15,13 (4) Investment board loan. The investment board may loan money to the Wisconsin next generation reserve board for general program operations and administrative expenses of the Wisconsin next generation reserve board. All loan terms shall be specified by written agreement between the investment board and the Wisconsin next generation reserve board.

SB21,15,14 (End)