SB218: Bill Text

SB218,33,8 5. The business is participating in a business development program that is approved by the authority and is operated or approved by the qualified business development organization, and the business receives the investment under this paragraph as part of that program.

SB218,33,13 (c) 1. When a qualified business development organization makes an investment of grant moneys in a business, the qualified business development organization shall at least match the amount of those grant moneys with an investment of capital in the business that the qualified business development organization has raised from other sources.

SB218,33,19 2. If an investment of grant moneys subject to subd. 1. is made as part of an existing equity investment portfolio that the qualified business development organization already manages and that portfolio has been funded from other sources, the qualified business development organization shall apply those moneys supplied from those other sources for the purpose of satisfying the matching requirement under subd. 1.

SB218,33,22 (d) The qualified business development organization may not apply the amount of the grant moneys it receives from the authority toward a tax credit under s. 71.07 (5b) or (5d), 71.28 (5b), 71.47 (5b), or 76.638.

SB218,34,2 239.44 Businesses that operate in economically distressed areas. (1) In this section, "distressed community" means an economically distressed area, as designated by the Wisconsin Economic Development Corporation under s. 238.304 (1).

SB218,34,5 (2) (a) To the extent feasible, the authority shall attempt to ensure that the moneys it invests under s. 239.435 are invested in businesses that operate in a distressed community.

SB218,34,8 (b) To the extent feasible, the authority shall attempt to ensure that the moneys it grants under s. 239.437 are invested by qualified business development organizations in businesses that operate in a distressed community.

SB218,34,11 (3) Upon its liquidation of assets under s. 239.49 (2) (a), the authority shall use 25 percent of the amount of those liquidated assets that exceeds $208,000,000 for an economic development program that serves distressed communities.

SB218,34,15 239.45 Reporting requirements. (1) Annual report. Annually, the authority shall submit to the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2), and to the governor, a report that includes all of the following:

SB218,34,17 (a) An accounting of the financial status of the fund, including the opinion of an independent certified public accountant.

SB218,34,18 (b) The authority's current investment policy for the fund.

SB218,34,19 (c) The authority's internal rate of return from its investments of fund capital.

SB218,34,22 (d) For each qualified investment capital fund in which the authority held an investment of fund capital under s. 239.43 during the preceding year, all of the following:

SB218,34,23 1. The name and address of the qualified investment capital fund.

SB218,34,25 2. The amount of each investment and the amount contributed to the investment by the qualified investment capital fund.

SB218,35,2 3. The internal rate of return realized by the qualified investment capital fund on each investment.

SB218,35,5 4. An accounting of any fee the qualified investment capital fund paid to itself or any principal or manager of the qualified investment capital fund during the preceding year.

SB218,35,7 (e) For each business in which a qualified investment capital fund held an investment of fund capital during the preceding year, all of the following:

SB218,35,8 1. The name and address of the business.

SB218,35,9 2. A description of the nature of the business.

SB218,35,11 3. The amount of each investment of fund capital in the business and the amount contributed to that investment by the qualified investment capital fund.

SB218,35,13 4. An identification of the qualified investment capital fund that made the investment.

SB218,35,18 5. A statement of the number of employees the business employed when the qualified investment capital fund first invested in the business, 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 the year preceding the year of the report.

SB218,35,20 (f) For each investment of fund capital held by the authority in a business under s. 239.435 during the preceding year, all of the following:

SB218,35,21 1. The name and address of the business.

SB218,35,22 2. A description of the nature of the business.

SB218,35,23 3. An identification of the angel investor network.

SB218,35,25 4. The amount of the investment and the amount contributed to the investment by the angel investor network.

SB218,36,5 5. A statement of the number of employees the business employed when the authority first invested in the business, 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 the year preceding the year of the report.

SB218,36,6 (g) With respect to grants under s. 239.437, all of the following:

SB218,36,8 1. An accounting of the total amount of moneys the authority granted to qualified business development organizations during the preceding year.

SB218,36,11 2. For each qualified business development organization that received a grant from the authority during the preceding year, the name and address of the qualified business development organization and the amount of the grant.

SB218,36,22 3. For each business in which a qualified business development organization held an investment of grant moneys during the preceding year, the name and address of the business, a description of the nature of the business, and an identification of the qualified business development organization that made the investment; the total amount of each investment in the business, including grant moneys and moneys contributed by the qualified business development organization or by other funding sources; and a statement of the number of employees the business employed when the qualified business development organization first invested grant moneys in the business, 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 the year preceding the year of the report.

SB218,36,24 (2) Progress report. In January 2020, the authority shall submit a report to the joint committee on finance that includes all of the following:

SB218,37,2 (a) A comprehensive assessment of the success to date of the programs administered by the authority under this subchapter.

SB218,37,6 (b) Any recommendations the authority has for improvement of the programs administered by the authority under this subchapter and the specific actions the authority intends to take or proposes to be taken to implement those recommendations.

SB218,37,10 (c) Any recommendations the investment board has for improvement of the programs administered by the authority under this subchapter and the specific actions the investment board proposes to be taken to implement those recommendations.

SB218,37,12 (3) Board responsibility. The board shall ensure that the reports under subs. (1) and (2) are complete and submitted in a timely manner.

SB218,37,18 239.49 Winding up of the Wisconsin forward jobs fund. (1) End of business. The secretary of administration shall determine the date that the authority satisfies the requirements under sub. (2) and shall provide a written notice that states that date to the legislative reference bureau for publication in the Wisconsin Administrative Register. The authority may not conduct business under this subchapter after that date.

SB218,37,20 (2) Liquidation of assets, transfer of property, and assignment of contracts. In December 2031, the authority shall do all of the following:

SB218,37,24 (a) Liquidate all of the authority's assets under this subchapter, including any interest in an investment subject to this subchapter that is owned by the authority, and, subject to s. 239.44 (3), pay the proceeds of that liquidation to the secretary of administration for deposit into the general fund.

SB218,38,2 (b) Transfer any tangible personal property owned by the authority under this subchapter, including records, to the department of administration.

SB218,38,4 (c) Assign any contract entered into by the authority under this subchapter to the secretary of administration.

SB218,46 Section 46 . Nonstatutory provisions.

SB218,38,7 (1) Definition. In this Section, "authority" means the Wisconsin Venture Capital Authority, as created by this act.

SB218,38,8 (2) Initial appointments.

SB218,38,19 (a) Notwithstanding the requirement of advice and consent of the senate under section 239.02 (1) (c) of the statutes, as created by this act, the initial members of the board of directors of the authority nominated by the executive director of the investment board under section 239.02 (1) (c) of the statutes, as created by this act, may be provisionally appointed by the executive director of the investment board, subject to later senate confirmation. Any provisional appointment shall be in full force until withdrawn by the executive director of the investment board 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.

SB218,38,25 (b) A provisional appointment made under paragraph (a) that is withdrawn by the executive director of the investment board shall, upon withdrawal, lapse and create a vacancy for provisional appointment of another initial member of the board of directors 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 under paragraph (a).

SB218,39,3 (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:

SB218,39,5 1. Two members nominated by the executive director of the investment board for terms expiring on July 1, 2017.

SB218,39,7 2. Two members nominated by the executive director of the investment board for terms expiring on July 1, 2018.

SB218,39,9 3. Two members nominated by the executive director of the investment board for terms expiring on July 1, 2019.

SB218,39,11 4. One member nominated by the executive director of the investment board for a term expiring on July 1, 2020.

SB218,39,15 (d) The governor, the executive director of the investment board, the speaker of the assembly, and the senate majority leader shall attempt to appoint the initial members of the board under section 239.02 (1) of the statutes, as created by this act, within 60 days after the effective date of this paragraph.

SB218,47 Section 47. Effective dates. This act takes effect on the day after publication, except as follows:

SB218,39,19 (1) The repeal and recreation of section 230.03 (3) of the statutes takes effect on July 1, 2013, or on the day after publication, whichever is later.

SB218,39,20 (End)