Amendment AA2-AB579

LRBa1286/3

KSH:kmg:jf

1997 - 1998 LEGISLATURE

ASSEMBLY AMENDMENT 2, TO 1997 ASSEMBLY BILL 579

December 17, 1997 - Offered by Committee on Financial Institutions.

AB579-AA2,1,1 At the locations indicated, amend the bill as follows:

AB579-AA2,1,2 1. Page 4, line 5: on lines 5, 11, and 13, delete "(1)" and substitute "(1m)".

AB579-AA2,1,3 2. Page 7, line 9: delete lines 9 to 16 and substitute:

AB579-AA2,1,5 "(11) "Qualified investment" means an investment in a qualified business by a certified capital company that meets the requirements under s. 560.34 (1).".

AB579-AA2,1,6 3. Page 12, line 4: delete lines 4 to 6 and substitute:

AB579-AA2,1,12 "560.34 Operation of certified capital companies. (1) Qualified investments requirements. In order for a certified capital company to prevent disqualification under s. 560.37 of an investment pool, the certified capital company shall ensure that the investment pool makes qualified investments in accordance with the schedule under sub. (1m). An investment is a qualified investment if the investment meets all of the following requirements:

AB579-AA2,2,2 (a) The investment is a cash investment in a qualified business for the purchase of any of the following:

AB579-AA2,2,3 1. An equity security of the qualified business.

AB579-AA2,2,5 2. A debt security of the qualified business if the debt has a maturity of at least 5 years and if one of the following conditions is met:

AB579-AA2,2,6 a. The debt is unsecured.

AB579-AA2,2,8 b. The debt is convertible into equity securities or equity participation instruments such as options or warrants.

AB579-AA2,2,10 (b) As a condition of the investment, the qualified business agrees not to use the proceeds from the investment for the purpose of relocating its operations.

AB579-AA2,2,13 (c) As a condition of the investment, the qualified business agrees, as long as the certified capital corporation continues to hold the investment, not to relocate its headquarters out of this state.

AB579-AA2,2,16 (d) As a condition of the investment, the qualified business agrees, as long as the certified capital corporation continues to hold the investment, to maintain at least 75% of its employes in this state.

AB579-AA2,2,24 (e) As a condition of the investment, the qualified business agrees, as long as the certified capital corporation continues to hold the investment, to maintain at least 75% of its employes at work sites that were maintained by the qualified business at the time that the investment was made, unless the qualified business obtains an exemption from the department under this paragraph. The department may grant an exemption unless it determines that the qualified business is locating the employes at new sites to take advantage of lower wage rates in the areas where the new sites are located.

AB579-AA2,2,25 (1m) Qualified investment schedule. (a) A certified capital".

AB579-AA2,3,1 4. Page 13, line 19: after that line insert:

AB579-AA2,3,6 "(1m) Violation of agreements by qualified businesses. As soon as practicable after the receipt of information by the certified capital company that a qualified business has violated an agreement made under s. 560.34 (1) (b) to (e), the certified capital company shall notify the department of the violation and the facts giving rise to the violation.".

AB579-AA2,3,7 5. Page 14, line 14: delete "(1)" and substitute "(1m)".

AB579-AA2,3,8 6. Page 15, line 21: on lines 21 and 23, delete "(1)" and substitute "(1m)".

AB579-AA2,3,9 (End)