Amendment SSA1-SB169

SB169-SSA1,6,8 (d) The investment manager shall contract with each venture capital fund that receives moneys under par. (b). Each contract shall require the venture capital fund to do all of the following:

SB169-SSA1,6,24 1. Make new investments in an amount equal to the moneys it receives under par. (b) in one or more businesses that are headquartered in this state and employ at least 50 percent of their full-time employees, including any subsidiary or other affiliated entity, in this state, and invest at least one-half of those moneys in one or more businesses that employ fewer than 150 full-time employees, including any subsidiary or other affiliated entity, when the venture capital fund first invests moneys in the business under this section. The venture capital fund's contract with a business in which the venture capital fund makes an investment under this subdivision shall require that, if within 3 years after the venture capital fund makes that investment, the business relocates its headquarters outside of this state or fails to employ at least 50 percent of its full-time employees, including any subsidiary or other affiliated entity, in this state, the business shall promptly pay to the venture capital fund an amount equal to the total amount of moneys designated under par. (b) 1. that the venture capital fund invested in the business. The venture capital fund shall reinvest those moneys in one or more businesses that are eligible to receive an investment under this subdivision, subject to the requirements of this section.

SB169-SSA1,7,4 2. Commit at least one-half of any moneys it receives under par. (b) to investments in businesses within 24 months after the date it receives those moneys and commit all of those moneys to investments in businesses within 48 months after that date.

SB169-SSA1,7,7 3. Invest all of the moneys it receives under par. (b) in businesses that are diverse with respect to industry classification and geographic location within this state.

SB169-SSA1,7,13 4. At least match any moneys it receives under par. (b) and invests in a business with an investment in that business of moneys the venture capital fund has raised from sources other than the investment manager. The investment manager shall ensure that, on average, for every $1 a venture capital fund receives under par. (b) and invests in a business, the venture capital fund invests $2 in that business from sources other than the investment manager.

SB169-SSA1,7,16 5. Provide to the investment manager the information necessary for the investment manager to complete the annual report under sub. (7) (a) and the quarterly report under sub. (7) (c).

SB169-SSA1,7,20 6. Disclose to the investment manager and the authority any interest that the venture capital fund or an owner, stockholder, partner, officer, director, member, employee, or agent of the venture capital fund holds in a business in which the venture capital fund invests or intends to invest moneys received under par. (b).

SB169-SSA1,7,24 (e) The investment manager's profit-sharing agreement with each venture capital fund that receives moneys under par. (b) shall be on terms that are substantially equivalent to the terms applicable for other funding sources of the venture capital fund.

SB169-SSA1,8,4 (6) Special requirements for investments of moneys contributed by the state. (a) The investment manager shall hold in an escrow account its gross proceeds from all investments of the moneys designated under sub. (5) (b) 1. until the investment manager satisfies par. (b).

SB169-SSA1,8,7 (b) At least annually, the investment manager shall pay any moneys held under par. (a) to the secretary of administration for deposit into the general fund until the investment manager has paid a total of $25,000,000 under this paragraph.

SB169-SSA1,8,11 (c) After the investment manager satisfies par. (b), the investment manager shall pay 90 percent of its gross proceeds from investments of the moneys designated under sub. (5) (b) 1. to the secretary of administration for deposit into the general fund.

SB169-SSA1,8,15 (7) Reports of the investment manager; public disclosures. (a) Annually, within 120 days after the end of the investment manager's fiscal year, the investment manager shall submit a report to the authority for that fiscal year that includes all of the following:

SB169-SSA1,8,17 1. An audit of the investment manager's financial statements performed by an independent certified public accountant.

SB169-SSA1,8,19 2. The investment manager's internal rate of return from investments under sub. (5) (b).

SB169-SSA1,8,21 3. For each venture capital fund that contracts with the investment manager under sub. (5) (d), all of the following:

SB169-SSA1,8,22 a. The name and address of the venture capital fund.

SB169-SSA1,8,23 b. The amounts invested in the venture capital fund under sub. (5) (b).

SB169-SSA1,8,25 c. An accounting of any fee the venture capital fund paid to itself or any principal or manager of the venture capital fund.

SB169-SSA1,9,2 d. The venture capital fund's average internal rate of return on its investments of the moneys it received under sub. (5) (b).

SB169-SSA1,9,4 4. For each business in which a venture capital fund held an investment of moneys the venture capital fund received under sub. (5) (b), all of the following:

SB169-SSA1,9,5 a. The name and address of the business.

SB169-SSA1,9,6 b. A description of the nature of the business.

SB169-SSA1,9,8 c. An identification of the venture capital fund that made the investment in the business.

SB169-SSA1,9,10 d. The amount of each investment in the business and the amount invested by the venture capital fund from funding sources other than the investment manager.

SB169-SSA1,9,12 e. The internal rate of return realized by the venture capital fund upon the venture capital fund's exit from the investment in the business.

SB169-SSA1,9,17 f. A statement of the number of employees the business employed when the venture capital fund first invested moneys in the business that the venture capital fund received under sub. (5) (b), the number of employees the business employed on the first day of the investment manager's fiscal year, and the number of employees the business employed on the last day of the investment manager's fiscal year.

SB169-SSA1,9,20 (b) No later than 10 days after it receives the investment manager's report under par. (a), the authority shall submit the report to the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2).

SB169-SSA1,9,22 (c) Quarterly, the investment manager shall submit a report to the authority for the preceding quarter that includes all of the following:

SB169-SSA1,9,24 1. An identification of each venture capital fund under contract with the investment manager under sub. (5) (d).

SB169-SSA1,10,5 2. An identification of each business in which a venture capital fund held an investment of moneys the venture capital fund received under sub. (5) (b) and a statement of the amount of the investment in each business that separately specifies the amount of moneys designated under sub. (5) (b) 1. that were contributed to the investment.

SB169-SSA1,10,9 3. A statement of the number of employees the business employed when the venture capital fund first invested moneys in the business that the venture capital fund received under sub. (5) (b) and the number of employees the business employed at the end of the quarter.

SB169-SSA1,10,11 (d) The authority shall make the investment manager's quarterly report under par. (c) readily accessible to the public on the authority's Internet site.

SB169-SSA1,10,12 (End)