AB531,7,222
(d) 1. If a certified capital company is decertified, or an investment pool is
23disqualified, under s. 560.37 before the certified capital company fulfills the
24investment requirement under s. 560.34 (1m) (a) 1. with respect to the investment
25pool, any insurer that has received a credit under this subsection with respect to that
1investment pool shall repay that credit to the department of revenue and may not
2claim more credit in respect to that investment pool.
AB531,7,123
2. If a certified capital company fulfills the investment requirement under s.
4560.34 (1m) (a) 1. with respect to an investment pool but the certified capital
5company is decertified, or an investment pool is disqualified, under s. 560.37 before
6the certified capital company fulfills the investment requirement under s. 560.34
7(1m) (a) 2. for that investment pool, any insurer that has received a credit under this
8subsection with respect to that investment pool shall repay all credits that were
9claimed for taxable years after the taxable year that includes the 3rd anniversary of
10the investment date of the investment pool and may claim no more credits for taxable
11years after the taxable year that includes the 3rd anniversary of the investment date
12of the investment pool.
AB531,7,1613
(e) An insurer may sell a credit under this subsection to another insurer who
14is subject to the tax imposed under s. 71.43 if the insurer notifies the commissioner
15of insurance and the department of revenue of the sale and includes with such
16notifications copies of the transfer documents.
AB531, s. 3
17Section
3. 71.49 (1) (dm) of the statutes is created to read:
AB531,7,1818
71.49
(1) (dm) Certified capital company credit under s. 71.47 (7).
AB531, s. 4
19Section
4. 560.30 (3) of the statutes is amended to read:
AB531,7,2120
560.30
(3) "Certified capital company tax credit" means the tax credit under
21s. ss. 71.47 (7) and 76.635.
AB531, s. 5
22Section
5. 560.30 (10) (d) of the statutes is amended to read:
AB531,8,223
560.30
(10) (d) A projected increase in federal or state taxes,
including 24excluding penalties and interest on those taxes, of the equity owners of the certified
1capital company if those amounts are related to the certified capital company's
2ownership, management
, or operation.
AB531, s. 6
3Section
6. 560.30 (10) (e) of the statutes is created to read:
AB531,8,54
560.30
(10) (e) Reasonable costs associated with applying for qualified federal
5funding programs, as determined by the department.
AB531, s. 7
6Section
7. 560.31 (1) of the statutes is amended to read:
AB531,8,147
560.31
(1) Application. The department shall promulgate rules establishing
8procedures under which a person may apply to become a certified capital company
9for receiving certified capital investments under s. 560.32 (2) (b) 1. or a certified
10capital company for receiving certified capital investments under s. 560.32 (2) (b) 2.
11The department shall grant or deny an application for certification under this section
12within 30 days of the date of application. If the department denies certification, the
13department shall include with the denial a detailed description of the grounds for the
14refusal, including suggestions for removal of those grounds.
AB531, s. 8
15Section
8. 560.31 (2) (b) of the statutes is amended to read:
AB531,8,1816
560.31
(2) (b)
The At the time of application and on the date on which the person
17is certified, the person has a net worth
, at the time of application, of at least $500,000
18and
has at least $500,000 in cash, cash equivalents
, and marketable securities.
AB531, s. 9
19Section
9. 560.31 (2) (g) of the statutes is created to read:
AB531,8,2120
560.31
(2) (g) The person agrees to maintain in this state an investment office
21and staff actively engaged in making investments.
AB531, s. 10
22Section
10. 560.32 (2) (b) of the statutes is renumbered 560.32 (2) (b) 1. and
23amended to read:
AB531,9,224
560.32
(2) (b) 1.
The Prior to the effective date of this subdivision .... [revisor
25inserts date], the department may certify an investment under this subsection only
1if, after the certification, the department will not have certified a total of more than
2$50,000,000 in investments under this subsection.
AB531, s. 11
3Section
11. 560.32 (2) (b) 2. of the statutes is created to read:
AB531,9,74
560.32
(2) (b) 2. Beginning on the effective date of this subdivision .... [revisor
5inserts date], the department shall certify investments for which notices have been
6received under par. (a), up to $300,000,000, excluding any investments certified
7under subd. 1.
AB531, s. 12
8Section
12. 560.32 (2) (c) of the statutes is renumbered 560.32 (2) (c) 1.
AB531, s. 13
9Section
13. 560.32 (2) (c) 2. of the statutes is created to read:
AB531,9,1410
560.32
(2) (c) 2. The department may not certify an investment under par. (b)
112. if, after the certification, the investor, together with all affiliates of the investor,
12would have in certified capital investments under par. (b) 2. more than the greater
13of $10,000,000 or 15% of the total amount of investments that the department may
14certify under par. (b) 2.
AB531, s. 14
15Section
14. 560.33 (1) (intro.) of the statutes is amended to read:
AB531,9,2016
560.33
(1) Qualifications. (intro.)
A Except as provided in sub. (2), a business
17is a qualified business if
all of the following requirements are met, as of the time that
18a certified capital company
, or any affiliate of the certified capital company
, makes
19its first investment in the business
, investment in the business will further economic
20development in this state or all of the following requirements are met:
AB531, s. 15
21Section
15. 560.33 (1) (b) of the statutes is renumbered 560.33 (1) (b) (intro.)
22and amended to read:
AB531,9,2423
560.33
(1) (b) (intro.) The business has no more than 100 employees
, at and any
24of the following applies:
AB531,9,25
251. At least 75% of
whom those employees are employed in this state.
AB531, s. 16
1Section
16. 560.33 (1) (b) 2. of the statutes is created to read:
AB531,10,32
560.33
(1) (b) 2. At least 75% of the total payroll of the business is paid to
3employees who are employed in this state.
AB531, s. 17
4Section
17. 560.33 (2) of the statutes is amended to read:
AB531,10,165
560.33
(2) Department opinions and exceptions. A certified capital company
6may shall, prior to making an investment in a specific business, request a written
7opinion from the department that a business in which it proposes to invest is a
8qualified business.
If the department determines that the business meets the
9requirements under sub. (1), the department shall issue a written opinion stating
10that the business is a qualified business Within 15 days of receiving the request, the
11department shall determine whether the business is a qualified business and, if the
12business is not a qualified business, notify the certified capital company in writing
13of the determination and the reasons for the determination. If the department fails
14to so notify the certified capital company within 15 days of receiving the request, the
15business shall be deemed a qualified business, notwithstanding any failure to satisfy
16sub. (1).
AB531, s. 18
17Section
18. 560.34 (1) (c) of the statutes is amended to read:
AB531,10,2018
560.34
(1) (c) As a condition of the investment, the qualified business agrees,
19as long as the certified capital
corporation company continues to hold the
20investment, not to relocate its headquarters out of this state.
AB531, s. 19
21Section
19. 560.34 (1) (d) of the statutes is renumbered 560.34 (1) (d) (intro.)
22and amended to read:
AB531,10,2523
560.34
(1) (d) (intro.) As a condition of the investment, the qualified business
24agrees, as long as the certified capital
corporation
company continues to hold the
25investment, to
maintain do any of the following:
AB531,11,1
11. Maintain at least 75% of its employees in this state.
AB531, s. 20
2Section
20. 560.34 (1) (d) 2. of the statutes is created to read:
AB531,11,43
560.34
(1) (d) 2. Pay at least 75% of its total payroll to employees who are
4employed in this state.
AB531, s. 21
5Section
21. 560.34 (1) (e) of the statutes is amended to read:
AB531,11,136
560.34
(1) (e) As a condition of the investment, the qualified business agrees,
7as long as the certified capital
corporation company continues to hold the
8investment, to maintain at least 75% of its employees at work sites that were
9maintained by the qualified business at the time that the investment was made,
10unless the qualified business obtains an exemption from the department under this
11paragraph. The department may grant an exemption unless it determines that the
12qualified business is locating the employees at new sites to take advantage of lower
13wage rates in the areas where the new sites are located.
AB531, s. 22
14Section
22. 560.34 (1m) (b) of the statutes is amended to read:
AB531,12,215
560.34
(1m) (b) The proceeds of all capital of a qualified investment returned
16to a certified capital company by a qualified business may be placed in new qualified
17investments, which shall count toward the percentage requirements under par. (a)
18and s. 560.36 (3). The department shall promulgate rules governing the extent to
19which a reinvestment of proceeds from the sale of a qualified investment in a
20qualified business may be counted toward the percentage requirements under par.
21(a) and ss. 560.36 (3) and 560.37 (3m) (a)
2. These rules may provide that reinvested
22proceeds from the sale of short-term investments shall be only partially counted
23toward the percentage requirements under par. (a) and ss. 560.36 (3) and 560.37 (3m)
24(a)
2. The rules may also provide that proceeds from the sale of an investment in a
25qualified business that are reinvested in that qualified business, or an affiliate of
1that qualified business, shall be only partially counted toward the percentage
2requirements under par. (a) and ss. 560.36 (3) and 560.37 (3m) (a)
2.
AB531, s. 23
3Section
23. 560.34 (2) of the statutes is renumbered 560.34 (2) (intro.) and
4amended to read:
AB531,12,105
560.34
(2) (intro.)
Nonqualified investments. All certified capital investments
6in a certified capital company that are not invested in qualified investments may be
7held or invested by the certified capital company
as it considers appropriate, except
8that a certified capital company may not invest certified capital investments in an
9insurance company or in an affiliate of an insurance company.
only in any of the
10following:
AB531, s. 24
11Section
24. 560.34 (2) (a) to (k) of the statutes are created to read:
AB531,12,1312
560.34
(2) (a) Deposits with a federally insured financial institution, as defined
13in s. 705.01 (3).
AB531,12,1514
(b) Certificates of deposit in a federally insured financial institution, as defined
15in s. 705.01 (3).
AB531,12,1816
(c) Investment securities that are obligations of the United States or its
17agencies or instrumentalities, or that are obligations that are guaranteed fully as to
18principal and interest by the United States.
AB531,12,2019
(d) Commercial paper rated at least "A1," "P1," or the equivalent, by a
20nationally recognized credit rating organization.
AB531,12,2221
(e) Debt instruments rated at least "AA" or its equivalent by a nationally
22recognized credit rating organization.
AB531,13,223
(f) Debt instruments issued by, or guaranteed with respect to payment by, an
24entity whose unsecured indebtedness is rated at least "AA" or its equivalent by a
1nationally recognized credit rating organization and which are not subordinated to
2other unsecured indebtedness of the issuer or guarantor, as applicable.
AB531,13,53
(g) Swaps or other hedging transactions designed to realize or protect the value
4of a qualified investment, if the counterparty is rated at least "A" or its equivalent
5by a nationally recognized credit rating organization.
AB531,13,66
(h) Obligations of the state or any political subdivision of the state.
AB531,13,87
(i) Interests in money market or other mutual funds, the portfolios of which are
8limited to cash and other permissible investments described in this subsection.
AB531,13,99
(j) A small business investment company that is approved by the department.
AB531,13,1010
(k) Any other investments approved in advance in writing by the department.
AB531, s. 25
11Section
25. 560.34 (5) of the statutes is created to read:
AB531,13,1612
560.34
(5) Qualified investment becoming nonqualified. (a) If a certified
13capital company makes an investment in a qualified business and, after the effective
14date of this paragraph .... [revisor inserts date], and during the time that the certified
15capital company still holds the investment, the qualified business violates an
16agreement made under sub. (1) (b) to (e), all of the following apply:
AB531,13,2017
1. The violation does not affect the certified capital company's satisfaction of
18the percentage requirements under sub. (1m) (a) 1. or 2., and 100% of the amount of
19the qualified investment shall be counted toward the certified capital company's
20satisfaction of those percentage requirements.
AB531,13,2421
2. If the violation occurs within the first year after the qualified investment was
22made, no amount of the qualified investment shall be counted toward the certified
23capital company's satisfaction of the percentage requirements under ss. 560.36 (3)
24and 560.37 (3m) (a).
AB531,14,4
13. If the violation occurs more than one year, but 3 years or less, after the
2qualified investment was made, only 25% of the amount of the qualified investment
3shall be counted toward the certified capital company's satisfaction of the percentage
4requirements under ss. 560.36 (3) and 560.37 (3m) (a).
AB531,14,85
4. If the violation occurs more than 3 years, but 5 years or less, after the
6qualified investment was made, only 50% of the amount of the qualified investment
7shall be counted toward the certified capital company's satisfaction of the percentage
8requirements under ss. 560.36 (3) and 560.37 (3m) (a).
AB531,14,129
5. If the violation occurs more than 5 years after the qualified investment was
10made, 90% of the amount of the qualified investment shall be counted toward the
11certified capital company's satisfaction of the percentage requirements under ss.
12560.36 (3) and 560.37 (3m) (a).
AB531,14,1913
(b) Notwithstanding par. (a), if a qualified business violates an agreement
14under sub. (1) (b), (c), (d), or (e), the department may grant an exception to the
15requirements under par. (a) 2. to 5. and not reduce the amount of the qualified
16investment that is counted toward the certified capital company's satisfaction of the
17percentage requirements under ss. 560.36 (3) and 560.37 (3m) (a), unless the
18department determines that the qualified business is locating employees at new sites
19to take advantage of lower wage rates in the areas where those sites are located.
AB531, s. 26
20Section
26. 560.35 (1c) of the statutes is created to read:
AB531,14,2321
560.35
(1c) Qualified investments. Within 15 days after making a qualified
22investment, a certified capital company shall report all of the following to the
23department:
AB531,14,2524
(a) The name of the qualified business in which the qualified investment was
25made.
AB531,15,1
1(b) The amount of the qualified investment.
AB531,15,22
(c) The type of investment, as specified in s. 560.34 (1) (a) 1. or 2. a. or b.
AB531, s. 27
3Section
27. 560.35 (1r) of the statutes is created to read:
AB531,15,94
560.35
(1r) Qualified investment schedule report. Within 30 days after the
5conclusion of each time period specified in s. 560.34 (1m) (a), a certified capital
6company shall report to the department, in the format and substance prescribed by
7the department, information required by the department for determining whether
8the certified capital company is in compliance with the percentage requirements
9under s. 560.34 (1m) (a).
AB531, s. 28
10Section
28. 560.35 (2) (intro.) of the statutes is amended to read:
AB531,15,1511
560.35
(2) Annual Semiannual reports. (intro.)
On
Each year, on or before
12January 31
annually, for the preceding 6-month period ending on December 31, and
13on or before July 31, for the preceding 6-month period ending on June 30, a certified
14capital company shall report
, in the format and substance prescribed by the
15department, all of the following to the department:
AB531, s. 29
16Section
29. 560.35 (2) (a) of the statutes is amended to read:
AB531,15,1817
560.35
(2) (a) The amount of the certified capital company's certified capital at
18the end of the preceding
year 6-month period.
AB531, s. 30
19Section
30. 560.35 (2) (c) of the statutes is amended to read:
AB531,15,2220
560.35
(2) (c) All qualified investments that the certified capital company has
21made during the
previous calendar year preceding 6-month period and the
22investment pool from which each qualified investment was made.
AB531, s. 31
23Section
31. 560.35 (3) of the statutes is amended to read:
AB531,16,1424
560.35
(3) Financial statements. Within 90 days of the end of the certified
25capital company's fiscal year, the certified capital company shall provide to the
1department a copy of its annual audited financial statements, including the opinion
2of an independent certified public accountant
, and a copy of a report on agreed-upon
3procedures prepared by an independent certified public accountant. The
audit shall 4address agreed-upon-procedures report shall identify the procedures performed by
5the certified capital company, as prescribed by the department, that relate to the
6methods of operation and conduct of the business of the certified capital company to
7enable the department to determine whether the certified capital company is
8complying with this subchapter and the rules promulgated under this subchapter,
9including whether certified capital has been invested in the manner required under
10s. 560.34. The financial statements
and agreed-upon-procedures report provided
11under this subsection shall be segregated by investment pool
and shall be separately
12audited on that basis to allow the department to determine whether the certified
13capital company is in compliance with
s. 560.34 (1m)
this subchapter and the rules
14promulgated under this subchapter.
AB531, s. 32
15Section
32. 560.37 (3m) (a) (intro.) and 2. of the statutes are consolidated,
16renumbered 560.37 (3m) (a) and amended to read:
AB531,16,2017
560.37
(3m) (a) A certified capital company may voluntary decertify itself as
18a certified capital company
if any of the following conditions are met: 2. The only
19if the certified capital company has placed in qualified investments an amount equal
20to 100% of the certified capital investment in the certified capital company.
AB531, s. 33
21Section
33. 560.37 (3m) (a) 1. of the statutes is repealed.
AB531, s. 34
22Section
34. 560.37 (4) of the statutes is amended to read:
AB531,16,2523
560.37
(4) Effect of decertification. Decertification of a certified capital
24company or an investment pool has the effects specified in
s. ss. 71.47 (7) (d) and 2576.635 (4).
AB531, s. 35
1Section
35. 560.37 (5) of the statutes is amended to read:
AB531,17,52
560.37
(5) Notices to certified investors. The department shall notify a
3certified investor when the certified capital company tax credit arising from a
4certified investment is no longer subject to recapture and forfeiture under
s. ss. 71.47
5(7) (d) and 76.635 (4).