Amendment ASA1-AB640

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.

AB640-ASA1,14,21 (2) Financial assistance. (a) From the appropriation under s. 20.192 (1) (t), the corporation may provide financial assistance to early stage businesses for the purpose of facilitating rapid prototype development and pilot testing of potentially marketable new technologies, components, or products.

AB640-ASA1,14,25 (b) The corporation may provide financial assistance to an early stage business under this section only if the early stage business is a member of an industry cluster partnership and agrees to consult with the industry cluster partnership concerning the early stage business's use of the financial assistance provided.

AB640-ASA1,15,8 (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, or product but that the financial assistance is an important contribution to future innovation and manufacturing and technology growth in this state and an important method of fostering a culture of private sector collaboration and innovation.

AB640-ASA1,15,17 238.44 Capacity building through industry cluster partnerships. (1) Contract application. Any industry cluster partnership in this state may apply for a contract under this section. In addition to any other information the corporation requires, the application shall include a business plan for the applicant that sets forth measurable economic development and business-related goals and the specific programming the applicant intends to implement to achieve those goals. The business plan shall demonstrate to the corporation's satisfaction how the applicant plans to be without need of corporation assistance within 10 years after first receiving financial assistance under a contract under this section.

AB640-ASA1,15,21 (2) Financial assistance. From the appropriation under s. 20.192 (1) (t), the corporation may provide financial assistance to industry cluster partnerships subject to contracts under this section. The corporation may not enter into more than one contract per industry under this section each year.

AB640-ASA1,15,25 (3) Award of contract; termination. (a) Subject to pars. (b) to (f), the corporation may award a contract under this section only to an industry cluster partnership that submits an application under sub. (1) and for which the corporation has evaluated all of the following:

AB640-ASA1,16,3 1. Evidence that the industry cluster partnership will strongly support the further development of existing regional concentrations of industry-specific businesses in this state.

AB640-ASA1,16,7 2. Evidence that the industry cluster partnership has raised funding or funding commitments from sources other than the corporation and the state that equal at least 10 percent of the annual amount of financial assistance the industry cluster partnership is requesting from the corporation, as determined by the corporation.

AB640-ASA1,16,10 (b) The corporation may not contract under this section with an industry cluster partnership unless the industry cluster partnership is headquartered in this state.

AB640-ASA1,16,17 (c) The corporation may not contract under this section with an industry cluster partnership unless the industry cluster partnership is governed by a board of directors with members from the public and private sectors who represent the businesses within the applicable industry, including businesses in the industry cluster partnership, and who represent the interests necessary to ensure a collaborative, strategic approach to supporting economic development, job growth, and the development of marketable products and services in the applicable industry.

AB640-ASA1,16,22 (d) The corporation may not contract under this section with more than one industry cluster partnership per industry at one time, unless every other industry cluster partnership in that industry with which the corporation is under contract is materially underperforming and the corporation determines that the public interest requires contracting with another industry cluster partnership within that industry.

AB640-ASA1,17,5 (e) If the corporation has more than one application pending under this section from industry cluster partnerships in the same industry, the corporation shall contract with the industry cluster partnership that the corporation determines is likely to have the greatest overall impact on economic development in this state within the applicable industry. In making that determination, and in making all competitive funding decisions under this section, the corporation shall give preference to the industry cluster partnership that best satisfies all of the following conditions:

AB640-ASA1,17,6 1. Has demonstrated strength in academic and industry relationships.

AB640-ASA1,17,7 2. Has strong leadership from the applicable industry on its board of directors.

AB640-ASA1,17,10 3. Was previously subject to a contract under this subsection, provided the industry cluster partnership met the goals outlined in the business plan submitted under sub. (1) and otherwise completed the contract to the corporation's satisfaction.

AB640-ASA1,17,17 (f) Each contract under this section shall provide, in addition to other bases for contract termination, that the corporation may terminate the contract if the industry cluster partnership fails to make satisfactory progress, as determined by the corporation, toward the goals outlined in the industry cluster partnership's business plan. Before terminating a contract for lack of such satisfactory progress, the corporation shall provide the industry cluster partnership notice of the pending termination and an opportunity to cure.

AB640-ASA1,17,20 238.45 Accelerators and small business innovation. The corporation may expend moneys from the appropriation under s. 20.192 (1) (t) to partially fund any of the following:

AB640-ASA1,17,22 (1) Any financial assistance that the corporation provides under a program the corporation administers to support business accelerators in this state.

AB640-ASA1,17,25 (2) Any financial assistance that the corporation provides to match or partially match grants made by the federal small business administration or under the federal Small Business Technology Transfer Program.

AB640-ASA1,18,6 238.46 Prioritization of funds. If the corporation determines that the amounts appropriated under s. 20.192 (1) (t) are not sufficient to fund all program activities under ss. 238.42 to 238.45 to the extent the corporation believes is necessary to accomplish its strategic economic development objectives under this subchapter, the corporation shall give priority to the program activities under ss. 238.43 to 238.45.

AB640-ASA1,18,21 238.47 Regulatory fast track. If an eligible regulatory applicant requires a permit or other approval of a state agency for activities related to the potential development and deployment of a new technology, component, product, system, or process, including field testing potentially marketable new technologies, implementing new technologies or products in a pilot project, or completing projects consistent with the economic development goals of the applicable industry cluster partnership, the state agency shall provide priority, expedited service to the eligible regulatory applicant to ensure that the agency's determination concerning the permit or approval is made as quickly as practicable and, in any event, no later than 90 days after a complete application or request for the permit or approval is received by the agency. The state agency shall appoint a single point of contact within the agency to receive communications from the applicant and manage the approval process. To the maximum extent possible under the state agency's authority with respect to the required approval, the agency shall seek to facilitate the rapid approval and successful execution of the requested activities.

AB640-ASA1,18,24 238.48 Operational or administrative costs. (1) The corporation shall cover its initial program operations and administrative expenses under this subchapter from the appropriation under s. 20.192 (1) (r).

AB640-ASA1,19,16 (2) If the corporation determines that the amount provided under s. 20.192 (1) (t) 1., 2., 3., or 4. is not sufficient to cover the corporation's actual general program operations and administrative expenses under this subchapter for a fiscal year, the corporation may notify the joint committee on finance in writing that the corporation proposes to exceed that amount for those purposes. That notice shall state the specific amount of additional moneys from the fund that the corporation proposes to use for general program operations and administrative expenses and the corporation's reasons supporting its determination that its expenditure of that additional amount is necessary for those purposes. If, within 14 working days after the date of that notice, the cochairpersons of the committee do not notify the corporation that the committee has scheduled a meeting to review the corporation's proposal, the corporation may expend the additional amount as proposed in the corporation's notice. If, within 14 working days after the date of that notice, the cochairpersons of the committee notify the corporation that the committee has scheduled a meeting to review the corporation's proposal, the corporation may expend the additional amount only upon approval of the committee.

AB640-ASA1,19,17 (End)