Amendment ASA1-SB261

SB261-ASA1,12,19 3. Any other information the department considers reasonable to include.

SB261-ASA1,13,7 (d) Rules. The department of commerce, in consultation with the department of revenue, shall promulgate rules to administer this section. The rules shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) at $3,000,000 per taxable year for taxable years beginning after December 31, 2004, and before January 1, 2015. The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), and 71.47 (5b) that may be claimed for investments paid to fund managers certified under sub. (2) at $3,500,000 per taxable year for taxable years beginning after December 31, 2004, and before January 1, 2015. The rules may not permit the department of commerce or the department of revenue to assign a dollar amount of investments qualifying for tax credits that a particular business may subsequently raise.

SB261-ASA1, s. 21 Section 21. 560.275 of the statutes is created to read:

SB261-ASA1,13,12 560.275 Technology commercialization grant and loan program. (1) Definition. In this section, "Project costs" means the total cost of a project financed, at least in part, by a grant or loan under sub. (2), calculated as provided by rule of the department.

SB261-ASA1,13,20 (2) Authorized grants and loans. (a) Early stage planning grants and loans. The department may make a grant or loan from the appropriation under s. 20.143 (1) (dk) or (ik) for the purpose of funding professional services related to completing an application to be submitted to the federal government for the purpose of obtaining early stage research and development funding or for the purpose of funding professional services that are required to accomplish specific tasks established as a condition of receiving early stage financing from 3rd parties that is necessary for business development.

SB261-ASA1,13,25 (b) Matching grants and loans. 1. The department may make a grant or loan from the appropriation under s. 20.143 (1) (dk) or (ik) for the purpose of funding professional services related to developing a proposed technologically innovative product, process, or service, if the applicant has received a grant from the federal government for a substantially similar purpose.

SB261-ASA1,14,5 2. The department may make a grant or loan from the appropriation under s. 20.143 (1) (dk) or (ik) for the purpose of funding professional services related to the accelerated commercialization of a technologically innovative product, process, or service, if the federal government has notified the applicant that the applicant will receive a grant from the federal government for a substantially similar purpose.

SB261-ASA1,14,15 (c) Bridge grants and loans. The department may make a grant or loan from the appropriation under s. 20.143 (1) (dk) or (ik) to a person who has received early stage financing from 3rd parties or a grant from the federal government to fund early stage research and development and who has sought additional early stage financing from 3rd parties or applied for an additional grant from the federal government to fund early stage research and development. A grant or loan under this paragraph shall be for the purpose of funding professional services necessary to maintain the project research and management team and funding basic operations until the applicant's additional 3rd party financing request or federal grant application is approved or denied.

SB261-ASA1,14,18 (d) Venture capital grants and loans. The department may make a grant or loan from the appropriation under s. 20.143 (1) (dk) or (ik) for the purpose of enhancing the applicant's ability to obtain early stage financing from 3rd parties.

SB261-ASA1,14,22 (e) Entrepreneurial and technology transfer center grants. The department may make a grant from the appropriation under s. 20.143 (1) (dk) or (ik) for the purpose of supporting any entrepreneurial and technology transfer center that satisfies all of the following criteria:

SB261-ASA1,14,23 1. The center serves multiple regions of this state.

SB261-ASA1,14,25 2. The center provides assistance, other than financial assistance, to entrepreneurs to facilitate business development.

SB261-ASA1,15,2 3. The center reviews and analyzes entrepreneurial business plans and offers advice concerning the improvement of the plans.

SB261-ASA1,15,4 4. The center provides advice to entrepreneurs concerning patent, trademark, and copyright issues.

SB261-ASA1,15,5 5. The center provides appropriate referral services to entrepreneurs.

SB261-ASA1,15,9 (3) Grant and loan amounts. (a) Early stage planning grants and loans. In determining the amount of a grant or loan under sub. (2) (a), the department shall consider all of the following, in addition to any other information the department considers relevant:

SB261-ASA1,15,11 1. The amount of economic impact the applicant, if successful, will have in this state.

SB261-ASA1,15,12 2. The quality of any businesses assisting the applicant.

SB261-ASA1,15,13 3. The level of need demonstrated by the applicant.

SB261-ASA1,15,14 4. The applicant's record of obtaining early stage financing in the past.

SB261-ASA1,15,17 (b) Matching grants and loans. In determining the amount of a grant or loan under sub. (2) (b), the department shall consider all of the following criteria, in addition to any other information the department considers relevant:

SB261-ASA1,15,18 1. The viability of the applicant's business.

SB261-ASA1,15,19 2. The likelihood that the applicant will successfully commercialize technology.

SB261-ASA1,15,20 3. The applicant's management plan and management team.

SB261-ASA1,15,22 4. The amount of economic impact the applicant, if successful, will have in this state.

SB261-ASA1,15,23 5. The applicant's record of obtaining early stage financing in the past.

SB261-ASA1,15,25 (4) Limitations on grant and loan amounts. (a) Early stage planning grants and loans. A grant or loan under sub. (2) (a) may not exceed $15,000.

SB261-ASA1,16,2 (b) Matching grants and loans. A grant or loan under sub. (2) (b) may not exceed 20 percent of the project costs or $250,000, whichever is less.

SB261-ASA1,16,4 (c) Bridge grants and loans. A grant or loan under sub. (2) (c) may not exceed 75 percent of the project costs or $100,000, whichever is less.

SB261-ASA1,16,6 (d) Venture capital grants and loans. A grant or loan under sub. (2) (d) may not exceed 50 percent of the project costs or $250,000, whichever is less.

SB261-ASA1,16,8 (e) Entrepreneurial and technology transfer grants. The total amount of grants under sub. (2) (e) may not exceed $500,000 in any fiscal year.

SB261-ASA1,16,11 (f) No grants or loans may be awarded under this section before July 1, 2005. The total amount of all grants and loans awarded under sub. (2) may not exceed $2,600,000 in each fiscal year, beginning with fiscal year 2005-06.

SB261-ASA1,16,13 (5) Eligibility. The department may make a grant or loan under sub. (2) (a) to (d) to an applicant only if all of the following apply:

SB261-ASA1,16,14 (a) The applicant:

SB261-ASA1,16,20 1. Is a small business, or individual entrepreneur who intends to form a small business, that is completing a grant application to be submitted to the federal government for the purpose of obtaining early stage research and development funding, except that if the application is for a grant under sub. (2) (b), the requirement that the applicant be completing a federal grant application does not apply; or

SB261-ASA1,16,24 2. Is an individual who is starting or developing a business which has significant growth potential, as evidenced by the potential to attract and receive early stage financing from 3rd parties, but who needs assistance with a specific facet of starting or developing the business.

SB261-ASA1,17,3 (b) If the applicant seeks a grant or loan under sub. (2) (a), the applicant has sufficient funding from sources other than the state to finance at least 25% of the project costs.

SB261-ASA1,17,4 (c) The applicant has or will have a business location in this state.

SB261-ASA1,17,6 (d) If the application relates to a product, the product will be manufactured substantially in this state.

SB261-ASA1,17,8 (e) If the application relates to a service, the principal place of business from which the service will be sold will be located in this state.

SB261-ASA1,17,9 (f) All grant moneys will be spent in this state.

SB261-ASA1,17,14 (6) Grant and loan distribution plan. No later than December 1 of each even-numbered year, the department shall develop a biennial plan for awarding grants and loans under sub. (2) and shall submit the plan to the governor and to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3).

SB261-ASA1,17,17 (7) Administration. (a) In-kind grants of services. The department may contract with, and pay the proceeds of any grant under sub. (2) (a) to (d) directly to, any person who provides services which the grant is intended to fund.

SB261-ASA1,17,20 (b) Rules. The department shall promulgate rules to administer this section. The rules shall establish application, reporting, auditing, and monitoring requirements.

SB261-ASA1, s. 22 Section 22 . Nonstatutory provisions.

SB261-ASA1,17,22 (1) Rules.

SB261-ASA1,18,2 (a) The department of commerce shall submit in proposed form the rules required under sections 560.205 and 560.275 of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 6th month beginning after the effective date of this paragraph.

SB261-ASA1,18,6 (b) The department of revenue shall submit in proposed form the rules required under section 71.07 (5d) (a) 1. of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 6th month beginning after the effective date of this paragraph.

SB261-ASA1, s. 23 Section 23 . Appropriation changes.

SB261-ASA1,18,16 (1) Authorized positions and promotional activities. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of commerce under section 20.143 (1) (a) of the statutes, as affected by the acts of 2005, the dollar amount is increased by $100,000 for fiscal year 2005-06 and the dollar amount is increased by $200,000 for fiscal year 2006-07 to increase the authorized FTE positions for the department by 2.0 GPR positions for the administration of section 560.275 of the statutes, as created by this act, and to provide funding for educational publications and instruction provided by the department to promote the technology commercialization grant and loan program.

SB261-ASA1, s. 24 Section 24. Initial applicability.

SB261-ASA1,18,21 (1) The treatment of sections 71.05 (6) (a) 15., 71.07 (5b) and (5d), 71.08 (1) (intro.), 71.10 (4) (gwb) and (gx), 71.21 (4), 71.26 (2) (a), 71.28 (5b), 71.30 (3) (eop), 71.34 (1) (g), 71.45 (2) (a) 10., 71.47 (5b), 71.49 (1) (eop), and 77.92 (4) of the statutes first applies to taxable years beginning on January 1, 2005.

SB261-ASA1, s. 25 Section 25. Effective dates. This act takes effect on July 1, 2004, except as follows:

SB261-ASA1,18,24 (1) Rules. Section 22 (1) of this act takes effect on the day after publication.

SB261-ASA1,19,3 (2) Appropriation changes. The treatment of section 20.143 (1) (dk) and (ik) of the statutes and Section 23 (1) of this act take effect on the 2nd day after publication of the 2005-07 biennial budget act.

SB261-ASA1,19,4 (End)