16.287(1)(fm)
(fm) "Minority investment firm" means a sole proprietorship, partnership, limited liability company, joint venture or corporation that fulfills all of the following requirements:
16.287(1)(fm)1.
1. It is at least 51% owned, controlled and actively managed by a minority group member or members who are U.S. citizens or persons lawfully admitted to the United States for permanent residence, as defined under
8 USC 1101 (a) (20).
16.287(1)(fm)2.
2. It serves as a manager, comanager or in any other underwriting capacity with regard to the sale of evidences of indebtedness or other obligations or as a broker-dealer as defined in
s. 551.102 (4).
16.287(1)(g)
(g) "Person of Asian-Pacific origin" means a person whose ancestors originated in Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust Territories of the Pacific or the Northern Marianas.
16.287(1)(h)
(h) "Useful business function" means the provision of materials, supplies, equipment or services to customers in addition to this state. Acting as a conduit to transfer funds to a nonminority business does not constitute a useful business function, unless doing so is a normal industry practice.
16.287(2)
(2) Minority business, adviser and firm certification. 16.287(2)(a)(a) For the purposes of
ss. 16.75 (3m),
16.855 (10m),
16.87 (2),
18.16,
18.64,
18.77,
25.185,
119.495 (2),
200.57,
231.27 and
234.35, the department shall establish and periodically update a list of certified minority businesses, minority financial advisers and minority investment firms. Any business, financial adviser or investment firm may apply to the department for certification. For purposes of this paragraph, unless the context otherwise requires, a "business" includes a financial adviser or investment firm.
16.287(2)(b)
(b) The department shall certify a business incorporated under
ch. 180 or having its principal place of business in this state if the department, after conducting an investigation, determines that the business qualifies as a minority business under
sub. (1) and any rules promulgated under
sub. (3) (c). A determination that a business qualifies as a minority business may not be based on the number of minority group members employed by the business.
16.287(2)(c)
(c) The department, without investigation, may certify a business incorporated in this state or having its principal place of business in this state if the business is certified or otherwise classified as a minority business by an agency or municipality of this or another state, a federally recognized American Indian tribe, or the federal government, or by a private business with expertise in certifying minority businesses if the private business uses substantially the same procedures as those used by the department in making a determination under
par. (b).
16.287(2)(d)1.1. If the business applying for certification is not incorporated under
ch. 180 or does not have its principal place of business in this state, the department may certify it if it meets a condition specified under
par. (b) or
(c) and if either of the following conditions exists:
16.287(2)(d)1.a.
a. The state in which the business is incorporated or has its principal place of business has a statutory minority business procurement program and the business qualifies for participation in that program under a procedure substantially equivalent to the procedure used by the department in making a determination under
par. (b).
16.287(2)(d)1.b.
b. The department determines that, with respect to a specified type of supply, material, equipment or service, there are not enough certified minority business suppliers in this state to enable this state to achieve compliance with
ss. 16.75 (3m),
16.855 (10m),
16.87 (2) and
25.185.
16.287(2)(dm)
(dm) The department may charge each business applying for certification under
par. (d) a fee to cover the department's expenses in making the certification determination.
16.287(2)(e)
(e) If a business refuses to provide the department with sufficient information to enable it to conduct an investigation under
par. (b) or if the business does not qualify for certification under
par. (b),
(c) or
(d), the department shall deny the application. A business whose application is denied may, within 30 days after the date of the denial, appeal in writing to the secretary. The secretary shall enter his or her final decision within 30 days after receiving the appeal.
16.287(2)(f)
(f) The department may, at the request of any state agency, or at its own discretion, examine any certified business to verify that it qualifies for certification. The business shall provide the department with any records or information necessary to complete the examination. If the business fails to comply with a reasonable request for records or information, the department shall decertify it.
16.287(2)(g)
(g) If the department, after an examination under
par. (f), determines that a business does not qualify as a minority business, the department shall notify the business and the departments of administration and transportation that it intends to decertify the business. The business may, within 30 days after the notice is sent, appeal in writing to the secretary. The secretary shall enter his or her final decision within 30 days after receiving the appeal. If the secretary confirms the decision of the department, the department shall immediately decertify the business. A decertified business may, within 30 days after the secretary's decision, request a contested case hearing under
s. 227.42 from the department. If the final administrative or judicial proceeding results in a determination that the business qualifies as a minority business, the department shall immediately certify the business.
16.287(3)(a)(a) The department shall promulgate rules establishing procedures to implement
sub. (2).
16.287(3)(c)
(c) The department may promulgate rules establishing conditions with which a business, financial adviser or investment firm must comply to qualify for certification, in addition to the qualifications specified under
sub. (1) (e),
(ep) and
(fm), respectively.
16.287 Cross-reference
Cross-reference: See also ch.
Adm 84, Wis. adm. code.
16.29
16.29
Technical assistance. 16.29(1)
(1) Annually, the department shall grant to the Great Lakes inter-tribal council the amount appropriated under
s. 20.505 (1) (kx) to partially fund a program to provide technical assistance for economic development on Indian reservations if the conditions under
subs. (2) and
(3) are satisfied.
16.29(2)(a)(a) As a condition of receiving a grant under
sub. (1), the Great Lakes inter-tribal council shall establish a technical assistance program.
16.29(2)(b)
(b) The program shall provide technical assistance to all of the following businesses:
16.29(2)(b)2.
2. An Indian business that is located on an Indian reservation.
16.29(2)(b)3.
3. An Indian business that is not located on an Indian reservation but that directly benefits the economy of an Indian reservation.
16.29(2)(c)
(c) The program shall provide the following types of technical assistance:
16.29(2)(c)2.
2. Start-up assistance to new businesses, including the development of business and marketing plans and assistance in securing development financing.
16.29(2)(c)3.
3. Technical assistance to new and existing businesses in gaining access to tribal, state and federal business assistance and financing programs.
16.29(2)(d)
(d) The program may not provide technical assistance for a commercial gaming and gambling activity.
16.29(3)
(3) As a condition of receiving a grant under
sub. (1), the Great Lakes inter-tribal council annually shall prepare a report on the technical assistance program under
sub. (2) and submit the report to the department.
16.29 History
History: 1991 a. 39,
261;
1995 a. 27;
1999 a. 9;
2011 a. 32 s.
3442m; Stats. 2011 s. 16.29.
16.295
16.295
Fund of funds investment program. 16.295(1)
(1)
Definition. In this section, "investment manager" means the person the committee selects under
sub. (3) (a) 1.
16.295(2)
(2) Establishment of program. The department shall establish and administer a program for the investment of moneys in venture capital funds that invest in businesses located in this state.
16.295(3)
(3) Selection of investment manager; contract approval. 16.295(3)(a)1.1. The secretary shall form a committee to select the investment manager. The committee shall consist of 3 representatives of the investment board and 2 representatives, appointed by the secretary, of the capital finance office in the department. The committee shall select a person as investment manager who has expertise in the venture capital or private equity asset class.
16.295(3)(a)2.
2. When the department gives the notice under
par. (b) 1., the department shall submit its proposed contract with the investment manager to the legislative audit bureau for review. The legislative audit bureau shall review the proposed contract and, within 14 days after it receives the proposed contract for review, submit to the joint committee on finance and the department a letter of review that evaluates the terms of the contract and offers an opinion concerning the extent to which the contract conforms with this section and implements
subs. (4) to
(7).
16.295(3)(b)1.1. The secretary shall notify in writing the joint committee on finance of the investment manager selected under
par. (a) 1. The notice shall include the department's proposed contract with the investment manager.
16.295(3)(b)2.
2. If, within 14 working days after the date the joint committee on finance receives the legislative audit bureau's letter of review under
par. (a) 2., the cochairpersons of the joint committee on finance do not notify the secretary that the committee has scheduled a meeting to determine whether the department's proposed contract with the investment manager is contrary to this section or fails to implement an applicable provision of
subs. (4) to
(7), the department and investment manager may execute that contract. If, within 14 working days after the date of that notice, the cochairpersons of the committee notify the secretary that the committee has scheduled that meeting, the department and investment manager may execute the contract unless the committee determines at that meeting that the contract, in whole or in part, is contrary to this section or fails to implement an applicable provision of
subs. (4) to
(7).
16.295(4)
(4) Contract with investment manager; disclosure requirement. 16.295(4)(a)(a) Subject to
sub. (3), the department shall contract with the investment manager. The contract shall establish the investment manager's compensation, including any management fee. Any management fee may not exceed, annually for no more than 4 years, 1 percent of the total moneys designated under
sub. (5) (b) 1. and raised under
sub. (5) (b) 3.
16.295(4)(b)
(b) The investment manager shall disclose to the department any interest that it or an owner, stockholder, partner, officer, director, member, employee, or agent of the investment manager has in a venture capital fund that receives moneys under
sub. (5) (b) or a business in which a venture capital fund invests those moneys.
16.295(5)
(5) Investments in venture capital funds. 16.295(5)(a)(a) Subject to
sub. (4) (a), the department shall pay $25,000,000 from the appropriation under
s. 20.505 (1) (fm) to the investment manager in fiscal year 2013-14.
16.295(5)(b)
(b) The investment manager shall invest the following moneys in at least 4 venture capital funds:
16.295(5)(b)2.
2. At least $300,000 of the investment manager's own moneys.
16.295(5)(b)3.
3. At least $5,000,000 that the investment manager raises from sources other than the department.
16.295(5)(c)1.1. Of the moneys designated under
par. (b), the investment manager may not invest more than $10,000,000 in a single venture capital fund.
16.295(5)(c)2.
2. Of the moneys designated under
par. (b), the investment manager shall commit at least one-half of those moneys to investments in venture capital funds within 12 months after the date the investment manager executes the contract under
sub. (4) (a), and the investment manager shall commit all of those moneys to investments in venture capital funds within 24 months after that date.
16.295(5)(d)
(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:
16.295(5)(d)1.
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.
16.295(5)(d)2.
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.
16.295(5)(d)3.
3. Invest all of the moneys it receives under
par. (b) in businesses in the agriculture, information technology, engineered products, advanced manufacturing, medical devices, or medical imaging industry and attempt to ensure that all of those moneys are invested in businesses that are diverse with respect to geographic location within this state.
16.295(5)(d)4.
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.
16.295(5)(d)5.
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).
16.295(5)(d)6.
6. Disclose to the investment manager and the department 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).
16.295(5)(e)
(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.
16.295(6)
(6) Special requirements for investments of moneys contributed by the state. 16.295(6)(a)(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).
16.295(6)(b)
(b) At least annually, the investment manager shall pay any moneys held under
par. (a) to the secretary for deposit into the general fund until the investment manager has paid a total of $25,000,000 under this paragraph.
16.295(6)(c)
(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 for deposit into the general fund.
16.295(7)
(7) Reports of the investment manager; public disclosures. 16.295(7)(a)(a) Annually, within 120 days after the end of the investment manager's fiscal year, the investment manager shall submit a report to the department for that fiscal year that includes all of the following:
16.295(7)(a)1.
1. An audit of the investment manager's financial statements performed by an independent certified public accountant.
16.295(7)(a)3.
3. For each venture capital fund that contracts with the investment manager under
sub. (5) (d), all of the following:
16.295(7)(a)3.c.
c. An accounting of any fee the venture capital fund paid to itself or any principal or manager of the venture capital fund.
16.295(7)(a)3.d.
d. The venture capital fund's average internal rate of return on its investments of the moneys it received under
sub. (5) (b).
16.295(7)(a)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:
