Amendment ASA1-AB640

AB640-ASA1,4,2 19.42 (10) (t) The members of the innovation fund council established under s. 238.41.

AB640-ASA1,2 Section 2 . 19.42 (13) (q) of the statutes is created to read:

AB640-ASA1,4,5 19.42 (13) (q) The members of the innovation fund council established under s. 238.41.

AB640-ASA1,3 Section 3 . 20.192 (1) (t) of the statutes is created to read:

AB640-ASA1,4,13 20.192 (1) (t) Innovation fund and programs; general program operations; financial assistance. From interest and income of the innovation fund, a sum sufficient to provide financial assistance under ss. 238.42, 238.43, 238.44, and 238.45 and for general program operations and administrative expenses related to the innovation fund council and the programs administered under subch. III of ch. 238. Not more than the following amounts may be expended under this paragraph for general program operations and administrative expenses under subch. III of ch. 238:

AB640-ASA1,4,14 1. In fiscal year 2019-20, 5 percent of the moneys in the innovation fund.

AB640-ASA1,4,15 2. In fiscal year 2020-21, 5 percent of the moneys in the innovation fund.

AB640-ASA1,4,16 3. In fiscal year 2021-22, 2 percent of the moneys in the innovation fund.

AB640-ASA1,4,18 4. In fiscal year 2022-23 and in each fiscal year thereafter, 0.5 percent of the moneys in the innovation fund.

AB640-ASA1,4 Section 4 . 20.192 (1) (y) of the statutes is created to read:

AB640-ASA1,4,23 20.192 (1) (y) Innovation fund and programs; additional operational or administrative expenses. From interest and income of the innovation fund, a sum sufficient equal to any amount authorized under s. 238.48 (2) for general program operations and administrative expenses.

AB640-ASA1,5 Section 5 . 20.536 (1) (k) of the statutes is amended to read:

AB640-ASA1,5,4 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 (73), for the purpose of conducting general program operations.

AB640-ASA1,6 Section 6 . 25.14 (1) (a) 20. of the statutes is created to read:

AB640-ASA1,5,6 25.14 (1) (a) 20. The innovation fund established under s. 25.90.

AB640-ASA1,7 Section 7 . 25.17 (1) (hq) of the statutes is created to read:

AB640-ASA1,5,8 25.17 (1) (hq) Innovation fund (s. 25.90);

AB640-ASA1,8 Section 8 . 25.17 (73) of the statutes is created to read:

AB640-ASA1,5,23 25.17 (73) Have authority to consult and provide advice and services to the Wisconsin Economic Development Corporation relating to the innovation fund and the economic development programs funded by the innovation fund. The scope of any consultation, advice, or services under this subsection shall be defined by agreement between the board and the Wisconsin Economic Development Corporation and shall include the board's consultation with the Wisconsin Economic Development Corporation concerning the board's investment of the fund. This agreement shall require the cost of any consultation, advice, or services provided by the board to be paid by the Wisconsin Economic Development Corporation, and the agreement may authorize the board to make assessments against the money and property controlled by the Wisconsin Economic Development Corporation or to charge the Wisconsin Economic Development Corporation for the cost of any consultation, 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).

AB640-ASA1,9 Section 9 . 25.90 of the statutes is created to read:

AB640-ASA1,6,5 25.90 Innovation fund. There is established a separate nonlapsible trust fund designated as the innovation fund. The fund shall consist of all moneys deposited in the fund under s. 73.17, 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.

AB640-ASA1,10 Section 10 . 73.17 of the statutes is created to read:

AB640-ASA1,6,22 73.17 Innovation fund. (1) In this section, “qualifying company" means a person whose principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget, is one of the following: 111, 112, 311, 424, 445, 481, 3121, 3364, 4244, 4245, 4881, 221111, 221112, 221113, 221114, 221115, 221116, 221117, 221121, 221122, 221210, 221310, 221330, 237990, 238210, 311221, 311224, 324110, 324191, 325193, 325199, 325220, 325311, 325312, 325314, 325320, 325411, 325412, 325413, 325414, 325998, 326122, 326199, 327331, 332410, 332420, 332911, 332913, 332999, 333111, 333249, 333241, 333242, 333318, 333413, 333414, 333415, 333611, 333612, 333613, 333618, 333991, 333993, 333994, 333995, 333996, 333999, 334111, 334290, 334412, 334413, 334416, 334418, 334419, 334510, 334511, 334512, 334513, 334514, 334515, 334516, 334517, 334519, 335110, 335121, 335122, 335129, 335210, 335220, 335311, 335312, 335313, 335314, 335911, 335912, 335921, 335929, 335931, 335999, 339112, 339113, 339114, 339115, 339116, 511210, 517410, 541320, 541330, 541370, 541380, 541511, 541512, 541519, 541620, 541713, 541714, 541715, 611512, 621491, 621493, 621511, 621512, 622110, or 811219.

AB640-ASA1,6,25 (2) (a) Before May 1, 2019, 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 2017.

AB640-ASA1,7,5 (b) Subject to par. (d), on July 1, 2019, and on each July 1 thereafter, ending on July 1, 2033, the department of revenue shall deposit into the innovation 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).

AB640-ASA1,7,13 (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. If the person has not identified the person's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget, for purposes of registering with the department of financial institutions, the person shall provide the code to the department of revenue in the manner determined by the department of revenue.

AB640-ASA1,7,16 (d) The department of revenue may not deposit into the innovation fund more than $50,000,000 in any fiscal year, and the total amount deposited may not exceed $500,000,000.

AB640-ASA1,11 Section 11 . 178.0901 (3) (e) of the statutes is created to read:

AB640-ASA1,7,20 178.0901 (3) (e) The partnership's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,12 Section 12 . 178.1003 (6) of the statutes is created to read:

AB640-ASA1,7,24 178.1003 (6) The partnership's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,13 Section 13 . 179.11 (1) (e) of the statutes is created to read:

AB640-ASA1,8,3 179.11 (1) (e) The limited partnership's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,14 Section 14 . 179.82 (9) of the statutes is created to read:

AB640-ASA1,8,7 179.82 (9) The foreign limited partnership's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,15 Section 15 . 179.85 of the statutes is amended to read:

AB640-ASA1,8,16 179.85 Amendments. If any statement in the application for registration of a foreign limited partnership was false when made or any arrangements or other facts described have changed, making the application inaccurate in any respect, the foreign limited partnership shall promptly file with the department, together with a filing fee of $15, a certificate, signed and sworn to by a general partner, correcting the statement. This section does not apply with respect to changes in the foreign limited partnership's principal business activity and the codes specified in s. 179.82 (9).

AB640-ASA1,16 Section 16 . 180.0202 (1) (j) of the statutes is created to read:

AB640-ASA1,8,20 180.0202 (1) (j) The corporation's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,17 Section 17 . 180.1503 (1) (k) of the statutes is created to read:

AB640-ASA1,8,24 180.1503 (1) (k) The foreign corporation's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,18 Section 18 . 180.1504 (2) of the statutes is amended to read:

AB640-ASA1,9,4 180.1504 (2) The requirements of s. 180.1503 (1) (a) to (h) and (k) and (2) for obtaining an original certificate of authority apply to obtaining an amended certificate under this section except that a foreign corporation is not required to deliver a certificate of status with an application solely to change a fictitious name.

AB640-ASA1,19 Section 19 . 181.0202 (1) (h) of the statutes is created to read:

AB640-ASA1,9,8 181.0202 (1) (h) If applicable, the corporation's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,20 Section 20 . 181.1503 (1) (i) of the statutes is created to read:

AB640-ASA1,9,12 181.1503 (1) (i) If applicable, the foreign corporation's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,21 Section 21 . 182.01 (7) of the statutes is created to read:

AB640-ASA1,9,21 182.01 (7) Transfer of business code information. Upon request by the department of revenue, the department of financial institutions shall make available to the department of revenue, which availability may be established by providing access to an electronic database, the business activity codes under ss. 178.0901 (3) (e), 178.1003 (6), 179.11 (1) (e), 179.82 (9), 180.0202 (1) (j), 180.1503 (1) (k), 181.0202 (1) (h), 181.1503 (1) (i), 183.0202 (7), 183.1004 (8), 185.05 (1) (n), and 193.215 (2) (a) 5. identified by business entities in their filings with the department of financial institutions.

AB640-ASA1,22 Section 22 . 183.0202 (7) of the statutes is created to read:

AB640-ASA1,9,25 183.0202 (7) The limited liability company's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,23 Section 23. 183.1004 (8) of the statutes is created to read:

AB640-ASA1,10,4 183.1004 (8) The foreign limited liability company's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,24 Section 24 . 185.05 (1) (n) of the statutes is created to read:

AB640-ASA1,10,8 185.05 (1) (n) If applicable, the cooperative's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,25 Section 25 . 193.215 (2) (a) 5. of the statutes is created to read:

AB640-ASA1,10,12 193.215 (2) (a) 5. If applicable, the cooperative's principal business activity code in the North American Industry Classification System, 2017 edition, published by the federal office of management and budget.

AB640-ASA1,26 Section 26 . 238.02 (4) of the statutes is amended to read:

AB640-ASA1,10,17 238.02 (4) All powers and duties assigned to the corporation under this chapter shall be exercised or carried out by the board, unless the board delegates the power or duty to an employee of the corporation or a committee established by the board or the innovation fund council.

AB640-ASA1,27 Section 27 . 238.04 (7) of the statutes is amended to read:

AB640-ASA1,10,21 238.04 (7) Execute contracts and other instruments required for the operation of the corporation, including the agreement with the investment board under s. 25.17 (73).

AB640-ASA1,28 Section 28 . Subchapter III of chapter 238 [precedes 238.40] of the statutes is created to read:

AB640-ASA1,10,24 Chapter 238

AB640-ASA1,11,2 Subchapter III innovation

AB640-ASA1,11,3 238.40 Definitions. In this subchapter:

AB640-ASA1,11,4 (1) “Council” means the innovation fund council established under s. 238.41.

AB640-ASA1,11,5 (1m) “Eligible regulatory applicant” means any of the following:

AB640-ASA1,11,6 (a) An entity that has received financial assistance under s. 238.42 or 238.43.

AB640-ASA1,11,8 (b) Any business, institution of higher education, technical college, or public utility that is a member of an industry cluster partnership.

AB640-ASA1,11,11 (c) Any business, institution of higher education, technical college, or public utility that participates in a business accelerator, business incubator, or technology pilot program facilitated by an industry cluster partnership.

AB640-ASA1,11,12 (2) “Fund” means the innovation fund.

AB640-ASA1,11,20 (3) “Industry cluster partnership" means a nonprofit organization, including its subsidiaries and affiliates, whose primary purpose, or whose subsidiary's or affiliate's primary purpose, is to assist in developing and supporting a regional concentration of industry-specific private sector businesses in this state and to foster industry-specific research and development, worker skills training, and market development at institutions of higher education in this state, including technical colleges, for the purpose of transferring to the private sector, and commercializing, technology developed at those institutions that is related to relevant industries.

AB640-ASA1,12,2 238.41 Innovation fund council. (1) Establishment. The corporation shall establish an advisory council to be called the “innovation fund council.” Except as otherwise provided under this section or in policies and procedures adopted by the corporation to govern the council's business, the council shall be subject to s. 15.09. The council shall advise the corporation concerning the use of fund moneys and the economic development programs administered under this subchapter and shall perform other duties, as determined by the corporation.

AB640-ASA1,12,3 (2) Membership. The council shall consist of the following members:

AB640-ASA1,12,5 (a) One member of the board who shall serve as chairperson of the council and shall be appointed by the chairperson of the board.

AB640-ASA1,12,6 (b) The executive director of the investment board or his or her designee.

AB640-ASA1,12,8 (c) The managing director of the Wisconsin Alumni Research Foundation, Inc., or his or her designee.

AB640-ASA1,12,17 (d) Four members appointed by the chairperson of the board to serve terms of not more than 4 years, as determined by the chairperson. No member appointed under this paragraph may serve more than 2 consecutive terms. At least 3 of the members appointed under this paragraph shall have significant experience working in or with a key industry cluster in this state. At least one of the members appointed under this paragraph shall have significant experience in early stage investing. All of the members appointed under this paragraph shall have, at the time of appointment, demonstrable access to national networks of stakeholders in their respective industries.

AB640-ASA1,12,22 238.42 Innovation through competition. (1) Local challenges. (a) The corporation, in collaboration with the council, may identify local problems affecting one or more regions within the state that, in the corporation's opinion, are susceptible to being solved over time through private sector innovation and the development and use of new technologies, components, systems, or processes.

AB640-ASA1,13,2 (b) The corporation may solicit applications for financial assistance from and provide financial assistance to businesses headquartered in this state, or coalitions of such businesses or of such businesses and institutions of higher education, for the development or deployment of a new technology, component, system, or process to solve or significantly improve upon a local problem identified under par. (a).

AB640-ASA1,13,9 (c) The financial assistance under par. (b) shall be provided from the appropriation under s. 20.192 (1) (t). In providing the financial assistance, the corporation shall give priority to applicants that, in the corporation's opinion, present the most compelling potential solution to the problem and the most credible business case for eventually marketing a solution that solves or significantly improves upon the problem and that demonstrates a potential to increase jobs in this state or reduce costs to the state or a political subdivision of the state.

AB640-ASA1,13,13 (2) Grand challenges. (a) The corporation may identify problems affecting a significant portion of the state or nation that, in the corporation's opinion, are susceptible to being solved over time through private sector innovation and the development and use of new technologies, components, systems, or processes.

AB640-ASA1,13,18 (b) The corporation may solicit applications for financial assistance from and provide financial assistance to businesses headquartered in this state, or coalitions of such businesses or of such businesses and institutions of higher education, for the development or deployment of a new technology, component, system, or process to solve or significantly improve upon a problem identified under par. (a).

AB640-ASA1,13,25 (c) The financial assistance under par. (b) shall be provided from the appropriation under s. 20.192 (1) (t). In providing the financial assistance, the corporation shall give priority to applicants that, in the corporation's opinion, present the most compelling potential solution to the problem and the most credible business case for eventually marketing a solution that solves or significantly improves upon the problem and that demonstrates a potential to increase jobs in this state or reduce costs to the state or a political subdivision of the state.

AB640-ASA1,14,8 (3) Maximizing the impact of financial assistance. Using available and feasible mechanisms, such as matching funds, the corporation shall undertake to maximize the impact of financial assistance provided under this section with the understanding that financial assistance provided under this section might not immediately result in the development of a marketable technology, component, system, or process but that the financial assistance is an important contribution to future innovation and manufacturing growth in this state and an important method of fostering a culture of private sector collaboration and innovation.

AB640-ASA1,14,12 238.43 New product research and development. (1) Definition. In this section, “early stage business” means a business that satisfies s. 238.15 (1) (a) to (g), (k), (kn), and (L), and for which all of the following are true at the time the business receives financial assistance under this section, as determined by the corporation:

AB640-ASA1,14,13 (a) The business has less than 100 employees.

AB640-ASA1,14,15 (b) The business has been in operation in this state for not more than 10 consecutive years.

AB640-ASA1,14,17 (c) The business has not received aggregate private equity investment in cash of more than $10,000,000.