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(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.
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(h) Obligations of the state or any political subdivision of the state.
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(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.
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(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.
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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).
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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).
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(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:
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(a) The name of the qualified business in which the qualified investment was
25made.
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1(b) The amount of the qualified investment.
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(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:
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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:
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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:
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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:
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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:
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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).
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7(1) Performance evaluation audit. The joint legislative audit committee is
8requested to, and may, direct the legislative audit bureau to perform a performance
9evaluation audit of the program under subchapter II of chapter 560 of the statutes,
10which shall include evaluating the overall effectiveness of the program. If the
11committee directs the legislative audit bureau to perform an audit under this
12subsection, the bureau shall file its report as described in section 13.94 (1) (b) of the
13statutes by January 1, 2005.
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(1) The treatment of sections 71.45 (2) (a) 10., 71.47 (7), 71.49 (1) (dm), 560.30
16(3), and 560.37 (4) and (5) of the statutes first applies to taxable years beginning on
17July 1, 2005.
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(2) The treatment of sections 560.31 (2) (b) and (g) of the statutes, the
19renumbering and amendment of sections 560.33 (1) (b) and 560.34 (1) (d) and (2) of
20the statutes, and the creation of sections 560.33 (1) (b) 2. and 560.34 (1) (d) 2. and (2)
21(a) to (h) of the statutes first apply to certified capital companies for which certified
22capital investments are first certified, and to certified capital investments that are
23first certified, on the effective date of this subsection.