Amendment SSA1-SB508

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MPG/ARG/JK:cjs/wlj/kjf:rs

2011 - 2012 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 1, TO 2011 SENATE BILL 508

March 8, 2012 - Offered by Senators Wanggaard, Taylor, Holperin, Risser, Wirch and Schultz.

SB508-SSA1,1,8 An Act to amend 15.07 (4), 20.536 (1) (k) and 25.14 (1) (a) (intro.); and to create 15.07 (1) (a) 7., 15.07 (5) (am), 15.77, 19.42 (10) (Lm), 19.42 (13) (km), 20.195, 25.17 (72), 25.17 (73), 25.90, 73.17, 230.08 (2) (yo) and chapter 555 of the statutes; relating to: creation of the Wisconsin Next Generation Reserve Board and Wisconsin next generation reserve fund, authorizing the State of Wisconsin Investment Board to provide certain advice, services, and facilities to state agencies and others, requiring the exercise of rule-making authority, and making appropriations.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB508-SSA1, s. 1 Section 1. 15.07 (1) (a) 7. of the statutes is created to read:

SB508-SSA1,1,11 15.07 (1) (a) 7. The members of the Wisconsin next generation reserve board appointed under s. 15.77 (1) (h) to (j) shall be appointed as provided in that section.

SB508-SSA1, s. 2 Section 2. 15.07 (4) of the statutes, as affected by 2011 Wisconsin Act 10, is amended to read:

SB508-SSA1,2,9 15.07 (4) Quorum. A majority of the membership of a board constitutes a quorum to do business and, unless a more restrictive provision is adopted by the board, a majority of a quorum may act in any matter within the jurisdiction of the board. This subsection does not apply to actions of the government accountability board or the school district boundary appeal board as provided in ss. 5.05 (1e) and 117.05 (2) (a) or the Wisconsin next generation reserve board as provided in s. 15.77 (3).

SB508-SSA1, s. 3 Section 3. 15.07 (5) (am) of the statutes is created to read:

SB508-SSA1,2,12 15.07 (5) (am) Members of the Wisconsin next generation reserve board, $50 per day.

SB508-SSA1, s. 4 Section 4. 15.77 of the statutes is created to read:

SB508-SSA1,2,16 15.77 Wisconsin next generation reserve board; creation. (1) There is created a Wisconsin next generation reserve board. The board shall consist of the following members:

SB508-SSA1,2,18 (a) One member who has expertise in agriculture and is recognized for outstanding knowledge and leadership in bioscience or bioscience research.

SB508-SSA1,2,22 (b) Two members who, at the time of appointment, serve in senior management positions at bioscience companies headquartered in this state that employ fewer than 50 employees, including any affiliate, and who, in addition to any other responsibilities, have responsibilities related to the financing of the companies.

SB508-SSA1,3,2 (c) One member who, at the time of appointment, serves in a senior management position at a bioscience company headquartered in this state that employs at least 50 employees, including any affiliate, and who, in addition to any other responsibilities, has responsibilities related to the financing of the company.

SB508-SSA1,3,7 (d) One member who, at the time of appointment, serves in a senior management position at a company headquartered in this state that develops or manufactures medical devices and employs fewer than 50 employees, including any affiliate, and who, in addition to any other responsibilities, has responsibilities related to the financing of the company.

SB508-SSA1,3,12 (e) One member who, at the time of appointment, serves in a senior management position at a company headquartered in this state that develops or manufactures medical devices and employs at least 50 employees, including any affiliate, and who, in addition to any other responsibilities, has responsibilities related to the financing of the company.

SB508-SSA1,3,16 (f) One member who, at the time of appointment, either has at least 5 years of experience directly investing in bioscience companies in this state, or represents a group of individual investors that has at least 5 years of experience directly investing in bioscience companies in this state.

SB508-SSA1,3,18 (g) One member who, at the time of appointment, has at least 3 years of experience in the merger and acquisition of bioscience companies.

SB508-SSA1,3,19 (h) One member appointed by BioForward, Inc.

SB508-SSA1,3,22 (i) One member who has expertise in bioscience or bioscience research, who shall be appointed by the Board of Regents of the University of Wisconsin System and who shall serve as a nonvoting member at the pleasure of the Board of Regents.

SB508-SSA1,4,2 (j) One member who has expertise in bioscience or bioscience research, who shall be appointed by the Wisconsin Association of Independent Colleges and Universities and who shall serve as a nonvoting member at the pleasure of the association.

SB508-SSA1,4,4 (k) The executive director of the investment board, or his or her designee, who shall serve as a nonvoting member.

SB508-SSA1,4,6 (2) The members of the board identified in sub. (1) (a) to (h) shall be appointed for 4-year terms.

SB508-SSA1,4,9 (3) A majority of the voting members of the board constitutes a quorum for the purpose of conducting its business and exercising its powers and for all other purposes. Action may be taken by the board upon a vote of a majority of a quorum.

SB508-SSA1, s. 5 Section 5. 19.42 (10) (Lm) of the statutes is created to read:

SB508-SSA1,4,15 19.42 (10) (Lm) The members of the Wisconsin next generation reserve board who are appointed by BioForward, Inc., by the Board of Regents of the University of Wisconsin System, and by the Wisconsin Association of Independent Colleges and Universities and the executive director of the Wisconsin next generation reserve board.

SB508-SSA1, s. 6 Section 6. 19.42 (13) (km) of the statutes is created to read:

SB508-SSA1,4,21 19.42 (13) (km) The members of the Wisconsin next generation reserve board who are appointed by BioForward, Inc., by the Board of Regents of the University of Wisconsin System, and by the Wisconsin Association of Independent Colleges and Universities and the executive director of the Wisconsin next generation reserve board.

SB508-SSA1, s. 7 Section 7. 20.195 of the statutes is created to read:

SB508-SSA1,4,24 20.195 Wisconsin next generation reserve board. There is appropriated to the Wisconsin next generation reserve board for the following program:

SB508-SSA1,5,7 (1) Assistance to certified bioscience companies. (q) General program operations and loans, grants, and investments. From the Wisconsin next generation reserve fund, a sum sufficient to make loans and provide grants to, and make investments in, certified bioscience companies as provided in ch. 555 and for general program operations and administrative expenses. Not more than the following amounts may be expended under this paragraph for general program operations and administrative expenses:

SB508-SSA1,5,9 1. In fiscal year 2013-14, 5 percent of the moneys in the Wisconsin next generation reserve fund.

SB508-SSA1,5,11 2. In fiscal year 2014-15, 5 percent of the moneys in the Wisconsin next generation reserve fund.

SB508-SSA1,5,13 3. In fiscal year 2015-16, 2 percent of the moneys in the Wisconsin next generation reserve fund.

SB508-SSA1,5,15 4. In fiscal year 2016-17 and in each fiscal year thereafter, 0.5 percent of the moneys in the Wisconsin next generation reserve fund.

SB508-SSA1,5,18 (r) Additional operational or administrative expenses. From the Wisconsin next generation reserve fund, a sum sufficient equal to any amount authorized under s. 555.06 for general program operations and administrative expenses.

SB508-SSA1, s. 8 Section 8. 20.536 (1) (k) of the statutes is amended to read:

SB508-SSA1,5,23 20.536 (1) (k) General program operations. All moneys received from assessments made under s. 25.187 (2) and, from charges made under s. 25.17 (9), and from assessments or charges made under s. 25.17 (72) or (73), for the purpose of conducting general program operations.

SB508-SSA1, s. 9 Section 9. 25.14 (1) (a) (intro.) of the statutes is amended to read:

SB508-SSA1,6,5 25.14 (1) (a) (intro.) There is created a state investment fund under the jurisdiction and management of the board to be operated as an investment trust for the purpose of managing the securities of all funds that are required by law to be invested in the state investment fund, the Wisconsin next generation reserve fund, and all of the state's funds specified in s. 25.17 (1), except all of the following:

SB508-SSA1, s. 10 Section 10. 25.17 (72) of the statutes is created to read:

SB508-SSA1,6,20 25.17 (72) Have authority to provide advice and services requested by a state agency, as defined in s. 20.001 (1), or authority, as defined in s. 16.417 (1) (b), or business entity owned or controlled by a state agency or authority, relating to managing or administering money and property controlled by the agency, authority, or business entity for any purpose, including economic development in this state. The scope of any advice or services provided to a state agency, authority, or business entity under this subsection shall be defined by agreement between the board and the agency, authority, or business entity. This agreement shall require the cost of any advice or services provided by the board to be paid by the agency, authority, or business entity and the agreement may authorize the board to make assessments against the money and property controlled by the agency, authority, or business entity or to charge the agency, authority, or business entity for the cost of any advice or services provided. All moneys received by the board under this subsection shall be credited to the appropriation account under s. 20.536 (1) (k).

SB508-SSA1, s. 11 Section 11. 25.17 (73) of the statutes is created to read:

SB508-SSA1,7,3 25.17 (73) Have authority to provide facilities to any state agency, as defined in s. 20.001 (1), or authority, as defined in s. 16.417 (1) (b), or business entity owned or controlled by a state agency or authority, in accordance with any agreement between the board and the agency, authority, or business entity. This agreement shall require the cost of facilities provided by the board to be paid by the agency, authority, or business entity. All moneys received by the board under this subsection shall be credited to the appropriation account under s. 20.536 (1) (k).

SB508-SSA1, s. 12 Section 12. 25.90 of the statutes is created to read:

SB508-SSA1,7,10 25.90 Wisconsin next generation reserve fund. There is established a separate nonlapsible trust fund designated as the Wisconsin next generation reserve fund. The fund shall consist of all moneys deposited in the fund under ss. 73.17, 555.02 (2) (c) and 555.03 (3), together with all donations, gifts, or bequests made to the fund, all moneys transferred to the fund from other funds, and all income or interest earned by the fund.

SB508-SSA1, s. 13 Section 13. 73.17 of the statutes is created to read:

SB508-SSA1,7,18 73.17 Wisconsin next generation reserve fund. (1) In this section, "qualifying company" means a person whose principal business activity code in the North American Industry Classification System, 2007 edition, published by the federal office of management and budget, is one of the following: 311221, 311222, 311223, 325193, 325199, 325221, 325311, 325312, 325314, 325320, 325411, 325412, 325413, 325414, 334510, 334516, 334517, 339112, 339113, 339114, 339115, 339116, 541380, 541711, 541712, 621491, 621493, 621511, 621512, or 622110.

SB508-SSA1,7,21 (2) (a) In July 2012, the department of revenue shall determine the total amount of withholding taxes due and payable under subch. X of ch. 71 from qualifying companies for calendar year 2011.

SB508-SSA1,8,2 (b) Subject to par. (d), on July 1, 2013, and on each July 1 thereafter, ending on July 1, 2027, the department of revenue shall deposit into the Wisconsin next generation reserve fund an amount equal to 95 percent of the amount of withholding taxes due and payable under subch. X of ch. 71 from qualifying companies in the previous calendar year that exceeds the amount determined under par. (a).

SB508-SSA1,8,5 (c) A person who is subject to withholding taxes under subch. X of ch. 71 shall indicate to the department of revenue whether it is a qualifying company for purposes of this section in the manner determined by the department.

SB508-SSA1,8,9 (d) The department of revenue shall not deposit into the Wisconsin next generation reserve fund more than $15,000,000 in fiscal year 2012-13 or $50,000,000 in any fiscal year thereafter, and the total amount deposited may not exceed $350,000,000.

SB508-SSA1,8,22 (e) After the department of revenue deposits a total of $350,000,000 into the fund under par. (d), and subject to the requirements of this paragraph, the department shall continue depositing moneys into the fund under par. (b), not to exceed an additional total amount of $150,000,000 in deposits. Before the department continues those deposits, the department shall notify the joint committee on finance in writing that the department intends to do so. If, within 14 working days after the date of that notice, the cochairpersons of the committee do not notify the department that the committee has scheduled a meeting to review the continuation of deposits into the fund, the department shall continue those deposits. If, within 14 working days after the date of that notice, the cochairpersons of the committee notify the department that the committee has scheduled a meeting to review the department's continuation of deposits into the fund, the department may continue those deposits only upon approval of the committee.

SB508-SSA1, s. 14 Section 14. 230.08 (2) (yo) of the statutes is created to read:

SB508-SSA1,8,25 230.08 (2) (yo) The executive director and administrative assistant of the Wisconsin next generation reserve board.

SB508-SSA1, s. 15 Section 15. Chapter 555 of the statutes is created to read:

SB508-SSA1,9,2 CHAPTER 555

SB508-SSA1,9,4 Wisconsin next generation RESERVE board

SB508-SSA1,9,5 555.01 Definitions. In this chapter:

SB508-SSA1,9,6 (1) "Board" means the Wisconsin next generation reserve board.

SB508-SSA1,9,8 (2) "Certified bioscience company" means a person certified by the board under s. 555.03 (2).

SB508-SSA1,9,11 (3) "Qualifying company" has the meaning given in s. 73.17 (1), except that "qualifying company" does not include a business that has as its principal business activity the operation of a hospital as defined in s. 50.33 (2).

SB508-SSA1,9,13 (4) "Fund" means the Wisconsin next generation reserve fund established under s. 25.90.

SB508-SSA1,9,17 555.02 Wisconsin next generation reserve fund. (1) Executive director. The board shall employ an executive director who has expertise in private equity investment. In reviewing candidates for executive director, the board shall consider all of the following:

SB508-SSA1,9,19 (a) The extent of the candidate's experience and expertise in private equity investment.

SB508-SSA1,9,21 (b) The candidate's investment experience related to start-up bioscience companies.

SB508-SSA1,9,23 (c) The candidate's experience related to seed or early stage business investments.

SB508-SSA1,9,24 (d) Any other criteria the board considers relevant.