Amendment ASA1-AB531

AB531-ASA1,30,22 560.35 (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.

AB531-ASA1, s. 80 Section 80. 560.35 (2) (d) of the statutes is created to read:

AB531-ASA1,31,2 560.35 (2) (d) All amounts that the certified capital company has expended under s. 560.34 (1e) (a), the investment pool from which each such expenditure was made, and the percentage of the total amount of the investment pool which each such expenditure represents.

AB531-ASA1, s. 81 Section 81. 560.35 (3) of the statutes is amended to read:

AB531-ASA1,31,19 560.35 (3) Financial statements. Within 90 days of the end of the certified capital company's fiscal year, the certified capital company shall provide to the department a copy of its annual audited financial statements, including the opinion of an independent certified public accountant, and a copy of a report on agreed-upon procedures prepared by an independent certified public accountant. The audit shall address agreed-upon-procedures report shall identify the procedures performed by the certified capital company, as prescribed by the department, that relate to the methods of operation and conduct of the business of the certified capital company to enable the department to determine whether the certified capital company is complying with this subchapter and the rules promulgated under this subchapter, including whether certified capital has been invested in the manner required under s. 560.34. The financial statements and agreed-upon-procedures report provided under this subsection shall be segregated by investment pool and shall be separately audited on that basis to allow the department to determine whether the certified capital company is in compliance with s. 560.34 (1m) this subchapter and the rules promulgated under this subchapter.

AB531-ASA1, s. 82 Section 82. 560.36 (intro.) of the statutes is renumbered 560.36 (1) (intro.) and amended to read:

AB531-ASA1,31,23 560.36 (1) (intro.) A Except as provided in sub. (2), a certified capital company may make a distribution only if one of the following conditions is met:

AB531-ASA1, s. 83 Section 83. 560.36 (1) to (4) of the statutes are renumbered 560.36 (1) (a) to (d) and 560.36 (1) (c), as renumbered, is amended to read:

AB531-ASA1,32,7 560.36 (1) (c) Placement of 100% 100 percent of investments in qualified investments. The certified capital company has placed in qualified investments an amount equal to 100% 100 percent of the certified capital investments in the investment pool and at least 60 percent of the total amount of such investments purchased equity securities; options, warrants, or other equity participation instruments; or debt that is convertible into equity securities or options, warrants, or other equity participation instruments.

AB531-ASA1, s. 84 Section 84. 560.36 (2m) of the statutes is created to read:

AB531-ASA1,32,21 560.36 (2m) State participation. A certified capital company that receives certified capital investments under s. 560.32 (2) (b) 2. shall pay to the department, for deposit into the general fund, 30 percent of the net profits and gains realized by the certified capital company on qualified investments resulting from those certified capital investments, except that the payment required under this subsection is 20 percent of those net profits and gains if the certified capital company, either concurrently with or after receiving certified capital investments under s. 560.32 (2) (b) 2., raises an additional pool of venture capital that does not contain certified capital investments and that is of a sufficient size and is sufficiently focused on investing in Wisconsin businesses, as determined by the department. A certified capital company shall make all payments required under this subsection concurrently with distributions of profits and gains to owners of the certified capital company.

AB531-ASA1, s. 85 Section 85. 560.37 (1m) of the statutes is created to read:

AB531-ASA1,33,6 560.37 (1m) Reduced management fee. If a certified capital company violates s. 560.34 (1e) (c) or (1m) (a), the department may order the certified capital company to reduce its annual management fee to the percentage of the certified capital company's total certified capital, or the total dollar amount, specified in that order. A certified capital company may, within 10 days after receiving an order under this subsection, 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 order was issued in error or was unreasonable, the department shall rescind or revise the order accordingly.

AB531-ASA1, s. 86 Section 86. 560.37 (3m) (a) (intro.) and 2. of the statutes are consolidated, renumbered 560.37 (3m) (a) and amended to read:

AB531-ASA1,33,13 560.37 (3m) (a) A certified capital company may voluntary decertify itself as a certified capital company if any of the following conditions are met: 2. The only if the certified capital company has placed in qualified investments an amount equal to 100% 100 percent of the certified capital investment in the certified capital company.

AB531-ASA1, s. 87 Section 87. 560.37 (3m) (a) 1. of the statutes is repealed.

AB531-ASA1, s. 88 Section 88. 560.37 (4) of the statutes is amended to read:

AB531-ASA1,33,18 560.37 (4) Effect of decertification. Decertification of a certified capital company or an investment pool has the effects specified in s. ss. 71.07 (7m) (e), 71.28 (7m) (e), 71.47 (7) (d) and (7m) (e), and 76.635 (4).

AB531-ASA1, s. 89 Section 89. 560.37 (5) of the statutes is amended to read:

AB531-ASA1,33,23 560.37 (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. 71.07 (7m) (e), 71.28 (7m) (e), 71.47 (7) (d) and (7m) (e), and 76.635 (4).

AB531-ASA1, s. 90 Section 90. Nonstatutory provisions.

AB531-ASA1,34,7 (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, 2005.

AB531-ASA1,34,8 (2) Existing contracts.

AB531-ASA1,34,10 (a) Definition. In this subsection, "certified capital company" has the meaning given in section 560.30 (2) of the statutes.

AB531-ASA1,34,19 (b) Effect on existing contracts. If a certified capital company is party to a contract that is in effect on the effective date of this paragraph and that contains provisions that are inconsistent with subchapter II of chapter 560 of the statutes, as affected by this act, but that are not inconsistent with any applicable law in effect immediately before the effective date of this paragraph, then, notwithstanding subchapter II of chapter 560 of the statutes, as affected by this act, the parties to the contract may perform their obligations, and exercise their rights, under those provisions of the contract until the contract expires or is extended, modified, or renewed, whichever occurs first.

AB531-ASA1, s. 91 Section 91. Initial applicability.

AB531-ASA1,34,24 (1) The treatment of sections 71.05 (6) (a) 15., 71.07 (7m), 71.10 (4) (cp), 71.21 (4), 71.26 (2) (a), 71.28 (7m), 71.30 (3) (dm), 71.34 (1) (g), 71.45 (2) (a) 10., 71.47 (7) and (7m), 71.49 (1) (dm) and (dn), 77.92 (4), 560.30 (3), and 560.37 (4) and (5) of the statutes first applies to taxable years beginning on July 1, 2005.

AB531-ASA1,35,3 (2) The treatment of section 560.32 (2) (b) 2. of the statutes, as it relates to claiming the credit under section 76.635 of the statutes first applies to taxable years beginning on July 1, 2005.

AB531-ASA1, s. 92 Section 92. Effective dates. This act takes effect on the day after publication, except as follows:

AB531-ASA1,35,7 (1) Retroactive effect. The creation of sections 560.32 (3) (b) and 560.34 (1e) (a) and (b) of the statutes takes effect retroactively to May 13, 1998.

AB531-ASA1,35,8 (End)