AB181-SSA1,26,12 10(2) The authority shall delegate to the fund manager the powers necessary or
11convenient for the fund manager to carry out the authority's duties under this
12subchapter.
AB181-SSA1,26,18 13(3) (a) The executive director of the investment board shall appoint a
14committee that consists of 3 members who shall select a candidate for fund manager.
15The executive director shall appoint the members of the selection committee based
16on a member's experience and leadership in capital investment. Members of the
17selection committee shall serve without compensation, but may be reimbursed for
18their actual and necessary expenses incurred in the performance of their duties.
AB181-SSA1,27,219 (b) 1. The selection committee appointed under par. (a) shall select a candidate
20for fund manager to recommend to the authority. In choosing that candidate, the
21selection committee shall consider an applicant's experience evaluating start-up
22companies, relationships with regional and national investment capital funds that
23may make investments in this state, experience managing publicly funded
24investment funds, performance managing existing portfolio funds and syndication

1partnerships, and experience gathering and making reports concerning investment
2fund performance data.
AB181-SSA1,27,43 2. The authority may reject a candidate for fund manager that the selection
4committee recommends under subd. 1.
AB181-SSA1,27,75 3. If the authority rejects a candidate for fund manager under subd. 2., the
6selection committee shall make another recommendation to the authority, subject to
7the requirements under subd. 1.
AB181-SSA1,27,98 (c) The authority shall staff the selection committee and pay the selection
9committee's administrative or other costs.
AB181-SSA1,27,13 10239.42 Qualified capital funds. (1) Application. Any person may apply to
11the authority on a form prescribed by the authority for approval under this section.
12The application shall include the name, address, and tax identification number of the
13applicant and any other information the authority requires.
AB181-SSA1,27,16 14(2) Approval for investments. The authority may approve an applicant under
15sub. (1) to receive fund capital. In determining whether to approve an applicant, the
16authority shall consider all of the following:
AB181-SSA1,27,1717 (a) The applicant's investment experience.
AB181-SSA1,27,1818 (b) The past performance of any investment managed by the applicant.
AB181-SSA1,27,2019 (c) The applicant's commitment to investing in businesses within this state and
20maintaining an office in this state.
AB181-SSA1,27,2321 (d) The applicant's commitment to making investments that are diverse with
22respect to the geographic location within this state and industry classification of the
23businesses in which the applicant invests.
AB181-SSA1,28,2 24239.43 Investments of fund capital in qualified investment capital
25funds; requirements.
(1) Fund investments. (a) From the appropriation under

1s. 20.195 (1) (q), the authority shall invest a total of at least $180,000,000 in qualified
2investment capital funds over the life of the fund.
AB181-SSA1,28,73 (b) The authority shall ensure that an amount equal to 100 percent of the fund
4capital it invests under this section is invested in businesses that are headquartered
5in this state and that at least $170,000,000 of that fund capital is invested in
6businesses that meet all of the following additional conditions at the time a qualified
7investment capital fund first invests in the business under this section:
AB181-SSA1,28,98 1. The business employs at least 50 percent of its full-time employees,
9including any subsidiary or other affiliated entity, in this state.
AB181-SSA1,28,1110 2. The business employs fewer than 150 full-time employees in total, including
11any subsidiary or other affiliated entity.
AB181-SSA1,28,1512 3. The business agrees to use fund capital only for research and development,
13the introduction of a new product in the market, the business's entry into a new
14market, or other activities that are expected to grow the business and create jobs in
15this state.
AB181-SSA1,28,1816 4. The business is not primarily engaged in real estate development or sales,
17insurance, banking, lending, lobbying, political consulting, professional services, or
18retail sales, other than direct sales of products the business itself manufactures.
AB181-SSA1,28,2019 (c) The authority may not invest more than $15,000,000 of fund capital in a
20single qualified investment capital fund.
AB181-SSA1,28,24 21(2) Contracts. Before the authority invests any fund capital in a qualified
22investment capital fund, the authority shall contract with the qualified investment
23capital fund. In addition to any other terms required or negotiated by the authority,
24that contract shall include the following requirements:
AB181-SSA1,29,5
1(a) The qualified investment capital fund shall commit to maintaining a
2significant physical presence in this state, including locating an office in this state
3that is staffed with at least one full-time employee of the qualified investment
4capital fund whose compensation is paid only by the qualified investment capital
5fund.
AB181-SSA1,29,106 (b) Within 4 years after the qualified investment capital fund receives a
7commitment of fund capital from the authority, the qualified investment capital fund
8shall have made initial investments and maintain reserves for follow-on
9investments of at least 100 percent of that fund capital in businesses approved by the
10authority during the life of the fund.
AB181-SSA1,29,1211 (c) The qualified investment capital fund may not invest less than $250,000 in
12fund capital in any one business.
AB181-SSA1,29,1913 (d) The qualified investment capital fund may not receive fund capital that
14exceeds 20 percent of the total moneys for investment, including any outstanding
15commitment, that the qualified investment capital fund has raised from all sources,
16except that a Wisconsin-based qualified investment capital fund, as determined by
17the authority, may not receive fund capital that exceeds 50 percent of the total
18moneys for investment, including any outstanding commitment, that the qualified
19investment capital fund has raised from all sources.
AB181-SSA1,29,2320 (e) The authority's profit-sharing agreement with any qualified investment
21capital fund shall be on terms that are substantially equivalent to the terms
22applicable for other funding sources of the qualified investment capital fund for
23similar investments.
AB181-SSA1,30,424 (f) From any investment of fund capital by a qualified investment capital fund
25under this section, the qualified investment capital fund may not pay a fee to itself

1or to any principal or manager of the qualified investment capital fund that is higher
2than the average fee it earns on other investments, and the fee may not exceed 2.5
3percent of the total amount of fund capital contributed to that investment by the
4authority.
AB181-SSA1,30,85 (g) The qualified investment capital fund shall disclose to the authority any
6interest that it or an owner, stockholder, partner, officer, director, member, employee,
7or agent of the qualified investment capital fund holds in a business in which the
8qualified investment capital fund invests or intends to invest fund capital.
AB181-SSA1,30,119 (h) The amount of fund capital the qualified investment capital fund receives
10may not be applied toward a tax credit under s. 71.07 (5b) or (5d), 71.28 (5b), 71.47
11(5b), or 76.638.
AB181-SSA1,30,1312 (i) The qualified investment capital fund shall maintain liability insurance in
13the amounts and for the coverages determined by the authority.
AB181-SSA1,30,1614 (j) The qualified investment capital fund shall agree that the authority and the
15state may refer to the qualified investment capital fund's name in public
16announcements or other documents or communications relating to the fund.
AB181-SSA1,30,21 17(3) Repayment of fund capital. In addition to any other legal remedies
18available to the authority, if a qualified investment capital fund fails to satisfy any
19of the requirements under sub. (2), the authority is entitled to payment from the
20qualified investment capital fund equal to 100 percent of the amount of fund capital
21the qualified investment capital fund received from the authority.
AB181-SSA1,30,24 22239.435 Angel investor networks. (1) From the appropriation under s.
2320.195 (1) (q), and subject to sub. (2), the authority may commit up to a total of
24$20,000,000 to investments proposed to the authority by angel investor networks.
AB181-SSA1,31,2
1(2) The authority may commit fund capital to an investment in a business
2under this section only if all of the following requirements are satisfied:
AB181-SSA1,31,33 (a) The business is or will be headquartered in this state.
AB181-SSA1,31,54 (b) The angel investor network agrees to invest $2 for every $1 in fund capital
5that the authority commits to the investment.
AB181-SSA1,31,86 (c) The authority's profit-sharing agreement with the angel investor network
7is on terms that are substantially equivalent to the terms applicable for other
8members of the angel investor network with respect to the investment.
AB181-SSA1,31,12 9239.437 Grants to qualified business development organizations. (1)
10Wisconsin forward jobs fund grants. From the appropriation under s. 20.195 (1)
11(q), the authority shall make grants to qualified business development organizations
12that total $8,000,000 over the life of the fund for investment in start-up businesses.
AB181-SSA1,31,16 13(2) Application. Any person may apply to the authority, on a form prescribed
14by the authority, for approval under sub. (3). The application shall include the name,
15address, and tax identification number of the person and any other information the
16authority requires.
AB181-SSA1,31,22 17(3) Approval. The authority may approve an applicant under sub. (2) to receive
18a grant under this section if the authority determines that the applicant operates a
19nonprofit or for-profit business incubator, regional economic development
20partnership, local economic development organization, or non-profit or for-profit
21entrepreneurial service agency that directly provides one or more of the following
22services to start-up businesses:
AB181-SSA1,32,223 (a) A facility that offers rent of the facility at a rate lower than the market rate
24in the community and provides shared administrative services or other assistance

1designed to reduce the costs and encourage the growth of a start-up business the
2facility serves.
AB181-SSA1,32,73 (b) As determined by the authority, high quality business support that is visible
4and easily accessible to entrepreneurs and small companies; that offers substantial
5management services or similar services to portfolio companies; and that integrates
6sources of deal flow, entrepreneurial support, and capital to effectively grow
7entrepreneurial commercialization outcomes.
AB181-SSA1,32,11 8(4) Contracts. Before the authority makes a grant under this section to a
9qualified business development organization, the authority shall contract with the
10qualified business development organization. In addition to any other terms
11required by the authority, that contract shall include the following requirements:
AB181-SSA1,32,1512 (a) The qualified business development organization shall commit to
13maintaining a significant physical presence in this state, including locating an office
14in this state that is staffed with at least one full-time employee of the qualified
15business development organization.
AB181-SSA1,32,1916 (b) The qualified business development organization shall invest 100 percent
17of the amount of the grant it receives from the authority under this section in a
18business that meets all of the following conditions at the time the qualified business
19development organization first invests in the business under this paragraph:
AB181-SSA1,32,2020 1. The business is headquartered in this state.
AB181-SSA1,32,2221 2. The business employs at least 50 percent of its employees, including any
22subsidiary or other affiliated entity, in this state.
AB181-SSA1,33,223 3. The business agrees to use fund capital only for research and development,
24the introduction of a new product in the market, the business's entry into a new

1market, or other activities that are expected to grow the business and create jobs in
2this state.
AB181-SSA1,33,43 4. The business is not primarily engaged in real estate development or sales,
4insurance, banking, lending, lobbying, or political consulting.
AB181-SSA1,33,85 5. The business is participating in a business development program that is
6approved by the authority and is operated or approved by the qualified business
7development organization, and the business receives the investment under this
8paragraph as part of that program.
AB181-SSA1,33,139 (c) 1. When a qualified business development organization makes an
10investment of grant moneys in a business, the qualified business development
11organization shall at least match the amount of those grant moneys with an
12investment of capital in the business that the qualified business development
13organization has raised from other sources.
AB181-SSA1,33,1914 2. If an investment of grant moneys subject to subd. 1. is made as part of an
15existing equity investment portfolio that the qualified business development
16organization already manages and that portfolio has been funded from other sources,
17the qualified business development organization shall apply those moneys supplied
18from those other sources for the purpose of satisfying the matching requirement
19under subd. 1.
AB181-SSA1,33,2220 (d) The qualified business development organization may not apply the amount
21of the grant moneys it receives from the authority toward a tax credit under s. 71.07
22(5b) or (5d), 71.28 (5b), 71.47 (5b), or 76.638.
AB181-SSA1,34,2 23239.44 Businesses that operate in economically distressed areas. (1)
24In this section, "distressed community" means an economically distressed area, as

1designated by the Wisconsin Economic Development Corporation under s. 238.304
2(1).
AB181-SSA1,34,5 3(2) (a) To the extent feasible, the authority shall attempt to ensure that the
4moneys it invests under s. 239.435 are invested in businesses that operate in a
5distressed community.
AB181-SSA1,34,86 (b) To the extent feasible, the authority shall attempt to ensure that the moneys
7it grants under s. 239.437 are invested by qualified business development
8organizations in businesses that operate in a distressed community.
AB181-SSA1,34,11 9(3) Upon its liquidation of assets under s. 239.49 (2) (a), the authority shall use
1025 percent of the amount of those liquidated assets that exceeds $208,000,000 for an
11economic development program that serves distressed communities.
AB181-SSA1,34,15 12239.45 Reporting requirements. (1) Annual report. Annually, the
13authority shall submit to the chief clerk of each house of the legislature, for
14distribution to the legislature under s. 13.172 (2), and to the governor, a report that
15includes all of the following:
AB181-SSA1,34,1716 (a) An accounting of the financial status of the fund, including the opinion of
17an independent certified public accountant.
AB181-SSA1,34,1818 (b) The authority's current investment policy for the fund.
AB181-SSA1,34,1919 (c) The authority's internal rate of return from its investments of fund capital.
AB181-SSA1,34,2220 (d) For each qualified investment capital fund in which the authority held an
21investment of fund capital under s. 239.43 during the preceding year, all of the
22following:
AB181-SSA1,34,2323 1. The name and address of the qualified investment capital fund.
AB181-SSA1,34,2524 2. The amount of each investment and the amount contributed to the
25investment by the qualified investment capital fund.
AB181-SSA1,35,2
13. The internal rate of return realized by the qualified investment capital fund
2on each investment.
AB181-SSA1,35,53 4. An accounting of any fee the qualified investment capital fund paid to itself
4or any principal or manager of the qualified investment capital fund during the
5preceding year.
AB181-SSA1,35,76 (e) For each business in which a qualified investment capital fund held an
7investment of fund capital during the preceding year, all of the following:
AB181-SSA1,35,88 1. The name and address of the business.
AB181-SSA1,35,99 2. A description of the nature of the business.
AB181-SSA1,35,1110 3. The amount of each investment of fund capital in the business and the
11amount contributed to that investment by the qualified investment capital fund.
AB181-SSA1,35,1312 4. An identification of the qualified investment capital fund that made the
13investment.
AB181-SSA1,35,1814 5. A statement of the number of employees the business employed when the
15qualified investment capital fund first invested in the business, the number of
16employees the business employed on January 1 of the year preceding the year of the
17report, and the number of employees the business employed on December 31 of the
18year preceding the year of the report.
AB181-SSA1,35,2019 (f) For each investment of fund capital held by the authority in a business under
20s. 239.435 during the preceding year, all of the following:
AB181-SSA1,35,2121 1. The name and address of the business.
AB181-SSA1,35,2222 2. A description of the nature of the business.
AB181-SSA1,35,2323 3. An identification of the angel investor network.
AB181-SSA1,35,2524 4. The amount of the investment and the amount contributed to the investment
25by the angel investor network.
AB181-SSA1,36,5
15. A statement of the number of employees the business employed when the
2authority first invested in the business, the number of employees the business
3employed on January 1 of the year preceding the year of the report, and the number
4of employees the business employed on December 31 of the year preceding the year
5of the report.
AB181-SSA1,36,66 (g) With respect to grants under s. 239.437, all of the following:
AB181-SSA1,36,87 1. An accounting of the total amount of moneys the authority granted to
8qualified business development organizations during the preceding year.
AB181-SSA1,36,119 2. For each qualified business development organization that received a grant
10from the authority during the preceding year, the name and address of the qualified
11business development organization and the amount of the grant.
AB181-SSA1,36,2212 3. For each business in which a qualified business development organization
13held an investment of grant moneys during the preceding year, the name and address
14of the business, a description of the nature of the business, and an identification of
15the qualified business development organization that made the investment; the total
16amount of each investment in the business, including grant moneys and moneys
17contributed by the qualified business development organization or by other funding
18sources; and a statement of the number of employees the business employed when
19the qualified business development organization first invested grant moneys in the
20business, the number of employees the business employed on January 1 of the year
21preceding the year of the report, and the number of employees the business employed
22on December 31 of the year preceding the year of the report.
AB181-SSA1,36,24 23(2) Progress report. In January 2020, the authority shall submit a report to
24the joint committee on finance that includes all of the following:
AB181-SSA1,37,2
1(a) A comprehensive assessment of the success to date of the programs
2administered by the authority under this subchapter.
AB181-SSA1,37,63 (b) Any recommendations the authority has for improvement of the programs
4administered by the authority under this subchapter and the specific actions the
5authority intends to take or proposes to be taken to implement those
6recommendations.
AB181-SSA1,37,107 (c) Any recommendations the investment board has for improvement of the
8programs administered by the authority under this subchapter and the specific
9actions the investment board proposes to be taken to implement those
10recommendations.
AB181-SSA1,37,12 11(3) Board responsibility. The board shall ensure that the reports under subs.
12(1) and (2) are complete and submitted in a timely manner.
AB181-SSA1,37,18 13239.49 Winding up of the Wisconsin forward jobs fund. (1) End of
14business.
The secretary of administration shall determine the date that the
15authority satisfies the requirements under sub. (2) and shall provide a written notice
16that states that date to the legislative reference bureau for publication in the
17Wisconsin Administrative Register. The authority may not conduct business under
18this subchapter after that date.
AB181-SSA1,37,20 19(2) Liquidation of assets, transfer of property, and assignment of contracts.
20In December 2031, the authority shall do all of the following:
AB181-SSA1,37,2421 (a) Liquidate all of the authority's assets under this subchapter, including any
22interest in an investment subject to this subchapter that is owned by the authority,
23and, subject to s. 239.44 (3), pay the proceeds of that liquidation to the secretary of
24administration for deposit into the general fund.
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