Amendment ASA1-AB579

AB579-ASA1,5,4 560.31 (2) (b) The At the time of application and on the date on which the person is certified, the person has a net worth, at the time of application, of at least $500,000 and has at least $500,000 in cash, cash equivalents , and marketable securities.

AB579-ASA1, s. 10 Section 10. 560.31 (2) (g) of the statutes is created to read:

AB579-ASA1,5,7 560.31 (2) (g) The person agrees to maintain in this state an investment office and staff actively engaged in making investments.

AB579-ASA1, s. 11 Section 11. 560.32 (2) (b) of the statutes is renumbered 560.32 (2) (b) 1. and amended to read:

AB579-ASA1,5,13 560.32 (2) (b) 1. The Prior to the effective date of this subdivision .... [revisor inserts date], the department may certify an investment under this subsection only if, after the certification, the department will not have certified a total of more than $50,000,000 in investments under this subsection.

AB579-ASA1, s. 12 Section 12. 560.32 (2) (b) 2. of the statutes is created to read:

AB579-ASA1,5,17 560.32 (2) (b) 2. The department may, beginning on the effective date of this subdivision .... [revisor inserts date], certify up to $100,000,000 in investments under this subsection, excluding any investments certified under subd. 1.

AB579-ASA1, s. 13 Section 13. 560.32 (2) (c) of the statutes is renumbered 560.32 (2) (c) 1.

AB579-ASA1, s. 14 Section 14. 560.32 (2) (c) 2. of the statutes is created to read:

AB579-ASA1,5,24 560.32 (2) (c) 2. The department may not certify an investment under par. (b) 2. if, after the certification, the investor, together with all affiliates of the investor, would have in certified capital investments under par. (b) 2. more than the greater of $10,000,000 or 15% of the total amount of investments that the department may certify under par. (b) 2.

AB579-ASA1, s. 15 Section 15. 560.32 (4) of the statutes is created to read:

AB579-ASA1,6,5 560.32 (4) Prohibition on returning initial investments. (a) Except as provided in par. (b), a person that is certified as a certified capital company under s. 560.31 may not return to investors investments that were made in the certified capital company prior to its certification for the purpose of enabling the person to meet the requirements under s. 560.31 (2) (b).

AB579-ASA1,6,9 (b) Paragraph (a) does not apply to an investment made in a certified capital company prior to its certification if compliance with par. (a) would impair any provision of a contract between the certified capital company and the investor that was entered into before the effective date of this paragraph .... [revisor inserts date].

AB579-ASA1, s. 16 Section 16. 560.33 (1) (b) of the statutes is renumbered 560.33 (1) (b) (intro.) and amended to read:

AB579-ASA1,6,13 560.33 (1) (b) (intro.) The business has no more than 100 employees, at and any of the following applies:

AB579-ASA1,6,14 1. At least 75% of whom those employees are employed in this state.

AB579-ASA1, s. 17 Section 17. 560.33 (1) (b) 2. of the statutes is created to read:

AB579-ASA1,6,17 560.33 (1) (b) 2. At least 75% of the total payroll of the business is paid to employees who are employed in this state.

AB579-ASA1, s. 18 Section 18. 560.33 (1) (c) of the statutes is amended to read:

AB579-ASA1,7,2 560.33 (1) (c) During its 2 most recent fiscal years, the business had, together with all of its consolidated affiliates, an average annual net income, after federal income taxes and excluding any carry-over losses, of not more than $2,000,000, as determined in accordance with generally accepted accounting principles. For purposes of this paragraph, a partnership, limited liability company, or tax-option corporation shall calculate its net annual income based on the net annual income, after federal income taxes and excluding any carry-over losses, of its partners, members, or shareholders that is related to the economic activity of the partnership, limited liability company, or tax-option corporation.

AB579-ASA1, s. 19 Section 19. 560.34 (1) (d) of the statutes is renumbered 560.34 (1) (d) (intro.) and amended to read:

AB579-ASA1,7,7 560.34 (1) (d) (intro.) As a condition of the investment, the qualified business agrees, as long as the certified capital corporation continues to hold the investment, to maintain do any of the following:

AB579-ASA1,7,8 1. Maintain at least 75% of its employees in this state.

AB579-ASA1, s. 20 Section 20. 560.34 (1) (d) 2. of the statutes is created to read:

AB579-ASA1,7,11 560.34 (1) (d) 2. Pay at least 75% of its total payroll to employees who are employed in this state.

AB579-ASA1, s. 21 Section 21. 560.34 (1m) (a) 3. of the statutes is created to read:

AB579-ASA1,7,15 560.34 (1m) (a) 3. Within 7 years after the investment date for a particular investment pool, at least 70% of the investment pool shall be placed in qualified investments.

AB579-ASA1, s. 22 Section 22. 560.34 (1m) (a) 4. of the statutes is created to read:

AB579-ASA1,7,19 560.34 (1m) (a) 4. Within 10 years after the investment date for a particular investment pool, 100% of the investment pool shall be placed in qualified investments.

AB579-ASA1, s. 23 Section 23. 560.35 (1c) of the statutes is created to read:

AB579-ASA1,7,24 560.35 (1c) Investment in qualified business. Within 15 days after entering into an agreement with a qualified business to make a qualified investment in the business, a certified capital company shall report all of the following to the department:

AB579-ASA1,7,25 (a) The name of the qualified business.

AB579-ASA1,8,1 (b) The agreed upon amount of the qualified investment.

AB579-ASA1,8,2 (c) The type of investment, as specified in s. 560.34 (1) (a) 1. or 2. a. or b.

AB579-ASA1, s. 24 Section 24. 560.35 (1m) of the statutes is renumbered 560.35 (1m) (a).

AB579-ASA1, s. 25 Section 25. 560.35 (1m) (b) of the statutes is created to read:

AB579-ASA1,8,10 560.35 (1m) (b) If a qualified business violates an agreement made under s. 560.34 (1) (b) to (e), for purposes of the requirements under subs. (2) (b) and (c) and (3) and ss. 560.34 (1m) (a), 560.36 (3), and 560.37 (2), (3), and (3m) (a) 2. and the certified capital company tax credit, the certified capital company's qualified investments with respect to that qualified business shall be valued at one-half of the actual amount invested by the certified capital company.

AB579-ASA1, s. 26 Section 26. 560.35 (1r) of the statutes is created to read:

AB579-ASA1,8,17 560.35 (1r) Qualified investment schedule report. Within 30 days after the conclusion of each time period specified in s. 560.34 (1m) (a), a certified capital company shall report to the department, in the format and substance prescribed by the department, information required by the department for determining whether the certified capital company is in compliance with the percentage requirements under s. 560.34 (1m) (a).

AB579-ASA1, s. 27 Section 27. 560.35 (2) (intro.) of the statutes is amended to read:

AB579-ASA1,8,23 560.35 (2) Annual Semiannual reports. (intro.) On Each year, on or before January 31 annually, for the preceding 6-month period ending on December 31, and on or before July 31, for the preceding 6-month period ending on June 30, a certified capital company shall report, in format and substance prescribed by the department, all of the following to the department:

AB579-ASA1, s. 28 Section 28. 560.35 (2) (a) of the statutes is amended to read:

AB579-ASA1,9,2 560.35 (2) (a) The amount of the certified capital company's certified capital at the end of the preceding year 6-month period.

AB579-ASA1, s. 29 Section 29. 560.35 (2) (c) of the statutes is amended to read:

AB579-ASA1,9,6 560.35 (2) (c) All qualified investments that the certified capital company has made during the previous calendar year preceding 6-month period and the investment pool from which each qualified investment was made.

AB579-ASA1, s. 30 Section 30. 560.37 (4) of the statutes is amended to read:

AB579-ASA1,9,10 560.37 (4) Effect of decertification. Decertification of a certified capital company or an investment pool has the effects specified in s. ss. 71.47 (7) (e) and 76.635 (4).

AB579-ASA1, s. 31 Section 31. 560.37 (5) of the statutes is amended to read:

AB579-ASA1,9,15 560.37 (5) Notices to certified investors. The department shall notify a certified investor when the certified capital company tax credit arising from a certified investment is no longer subject to recapture and forfeiture under s. ss. 71.47 (7) (e) and 76.635 (4).

AB579-ASA1, s. 32 Section 32. Nonstatutory provisions.

AB579-ASA1,9,23 (1) Performance evaluation audit. The joint legislative audit committee is requested to, and may, direct the legislative audit bureau to perform a performance evaluation audit of the program under subchapter II of chapter 560 of the statutes, which shall include evaluating the overall effectiveness of the program. If the committee directs the legislative audit bureau to perform an audit under this subsection, the bureau shall file its report as described in section 13.94 (1) (b) of the statutes by January 1, 2003.

AB579-ASA1, s. 33 Section 33. Initial applicability.

AB579-ASA1,10,2 (1 ) The treatment of sections 71.47 (7) and 560.37 (4) and (5) of the statutes first applies to taxable years beginning on January 1, 2002.

AB579-ASA1,10,4 (2) The treatment of section 560.34 (1m) (a) 3. and 4. of the statutes first applies to investment pools for which December 31, 1999, is the investment date.

AB579-ASA1,10,7 (3) The treatment of sections 560.30 (10) (a), (c), (d), and (e), 560.31 (2) (g), and 560.32 (2) (b) 2. and (c) 2. and (4) of the statutes first applies to credits claimed on July 1, 2003.

AB579-ASA1,10,8 (End)