Generally, the department may make a grant or loan to a small business, or
individual entrepreneur who intends to form a small business, that is completing a
grant application to be submitted to the federal government for the purpose of

obtaining early stage research and development funding. The department may also
make a grant or loan to an individual who is starting or developing a business which
has significant growth potential, as evidenced by the potential to attract and receive
early stage financing from third parties, but who needs assistance with a specific
facet of starting or developing the business. In addition, the department may make
a grant or loan only to an applicant that has or will have a business location in this
state; that will manufacture a product substantially in this state (if the application
relates to a product); that will maintain a principal place of business in this state (if
the application relates to a service); and that will ensure all grant moneys will be
spent in this state. Furthermore, if the applicant seeks an early stage planning grant
or loan, the applicant must have funding from sources other than the state to finance
at least 25% of the project costs.
These requirements do not apply to grants made to entrepreneurial and
technology transfer centers.
Appropriations
This bill provides $5,300,000 in GPR annually to fund grants and loans under
the program. The bill also provides $100,000 in the 2003-04 fiscal year and $200,000
in the 2004-05 fiscal year to increase the authorized positions to the department by
2.0 FTE positions and to fund the department's activities to promote the program.
Administration
The bill requires the department to develop a biennial plan for awarding grants
and loans under the program and to submit the plan to the governor and to the chief
clerk of each house of the legislature, for distribution to the appropriate standing
committees. The bill permits the department to contract with, and pay the proceeds
of any grant under the program (other than a grant to an entrepreneurial and
technology transfer center) directly to, any person who provides services which the
grant is intended to fund. In addition, the bill requires the department to promulgate
rules, including rules establishing application, reporting, auditing, and monitoring
requirements.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB705, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
AB705, s. 2 1Section 2. 20.143 (1) (dk) of the statutes is created to read:
AB705,4,42 20.143 (1) (dk) Technology commercialization grant and loan program;
3assistance.
Biennially, the amounts in the schedule for grants and loans under s.
4560.275 (2).
AB705, s. 3 5Section 3. 20.143 (1) (ik) of the statutes is created to read:
AB705,4,86 20.143 (1) (ik) Technology commercialization grant and loan program;
7repayments.
All moneys received in repayment of grants and loans made under s.
8560.275 (2), to be used for grants and loans under s. 560.275 (2).
AB705, s. 4 9Section 4. 560.275 of the statutes is created to read:
AB705,4,13 10560.275 Technology commercialization grant and loan program. (1)
11Definition. In this section, "Project costs" means the total cost of a project financed,
12at least in part, by a grant or loan under sub. (2), calculated as provided by rule of
13the department.
AB705,5,3 14(2) Authorized grants and loans. (a) Early stage planning grants and loans.
15The department may make a grant or loan from the appropriation under s. 20.143
16(1) (dk) or (ik) for the purpose of funding professional services related to completing
17an application to be submitted to the federal government for the purpose of obtaining
18early stage research and development funding or for the purpose of funding

1professional services that are required to accomplish specific tasks established as a
2condition of receiving early stage financing from 3rd parties that is necessary for
3business development.
AB705,5,84 (b) Matching grants and loans. 1. The department may make a grant or loan
5from the appropriation under s. 20.143 (1) (dk) or (ik) for the purpose of funding
6professional services related to developing a proposed technologically innovative
7product, process, or service, if the applicant has received a grant from the federal
8government for a substantially similar purpose.
AB705,5,139 2. The department may make a grant or loan from the appropriation under s.
1020.143 (1) (dk) or (ik) for the purpose of funding professional services related to the
11accelerated commercialization of a technologically innovative product, process, or
12service, if the federal government has notified the applicant that the applicant will
13receive a grant from the federal government for a substantially similar purpose.
AB705,5,2314 (c) Bridge grants and loans. The department may make a grant or loan from
15the appropriation under s. 20.143 (1) (dk) or (ik) to a person who has received early
16stage financing from 3rd parties or a grant from the federal government to fund early
17stage research and development and who has sought additional early stage financing
18from 3rd parties or applied for an additional grant from the federal government to
19fund early stage research and development. A grant or loan under this paragraph
20shall be for the purpose of funding professional services necessary to maintain the
21project research and management team and funding basic operations until the
22applicant's additional 3rd party financing request or federal grant application is
23approved or denied.
AB705,6,3
1(d) Venture capital grants and loans. The department may make a grant or loan
2from the appropriation under s. 20.143 (1) (dk) or (ik) for the purpose of enhancing
3the applicant's ability to obtain early stage financing from 3rd parties.
AB705,6,74 (e) Entrepreneurial and technology transfer center grants. The department
5may make a grant from the appropriation under s. 20.143 (1) (dk) or (ik) for the
6purpose of supporting any entrepreneurial and technology transfer center that
7satisfies all of the following criteria:
AB705,6,88 1. The center serves multiple regions of this state.
AB705,6,109 2. The center provides assistance, other than financial assistance, to
10entrepreneurs to facilitate business development.
AB705,6,1211 3. The center reviews and analyzes entrepreneurial business plans and offers
12advice concerning the improvement of the plans.
AB705,6,1413 4. The center provides advice to entrepreneurs concerning patent, trademark,
14and copyright issues.
AB705,6,1515 5. The center provides appropriate referral services to entrepreneurs.
AB705,6,19 16(3) Grant and loan amounts. (a) Early stage planning grants and loans. In
17determining the amount of a grant or loan under sub. (2) (a), the department shall
18consider all of the following, in addition to any other information the department
19considers relevant:
AB705,6,2120 1. The amount of economic impact the applicant, if successful, will have in this
21state.
AB705,6,2222 2. The quality of any businesses assisting the applicant.
AB705,6,2323 3. The level of need demonstrated by the applicant.
AB705,6,2424 4. The applicant's record of obtaining early stage financing in the past.
AB705,7,3
1(b) Matching grants and loans. In determining the amount of a grant or loan
2under sub. (2) (b), the department shall consider all of the following criteria, in
3addition to any other information the department considers relevant:
AB705,7,44 1. The viability of the applicant's business.
AB705,7,55 2. The likelihood that the applicant will successfully commercialize technology.
AB705,7,66 3. The applicant's management plan and management team.
AB705,7,87 4. The amount of economic impact the applicant, if successful, will have in this
8state.
AB705,7,99 5. The applicant's record of obtaining early stage financing in the past.
AB705,7,11 10(4) Limitations on grant and loan amounts. (a) Early stage planning grants
11and loans.
A grant or loan under sub. (2) (a) may not exceed $15,000.
AB705,7,1312 (b) Matching grants and loans. A grant or loan under sub. (2) (b) may not
13exceed 20 percent of the project costs or $250,000, whichever is less.
AB705,7,1514 (c) Bridge grants and loans. A grant or loan under sub. (2) (c) may not exceed
1575 percent of the project costs or $100,000, whichever is less.
AB705,7,1716 (d) Venture capital grants and loans. A grant or loan under sub. (2) (d) may not
17exceed 50 percent of the project costs or $250,000, whichever is less.
AB705,7,1918 (e) Entrepreneurial and technology transfer grants. The total amount of grants
19under sub. (2) (e) may not exceed $500,000 in any fiscal year.
AB705,7,21 20(5) Eligibility. The department may make a grant or loan under sub. (2) (a)
21to (d) to an applicant only if all of the following apply:
AB705,7,2222 (a) The applicant:
AB705,8,323 1. Is a small business, or individual entrepreneur who intends to form a small
24business, that is completing a grant application to be submitted to the federal
25government for the purpose of obtaining early stage research and development

1funding, except that if the application is for a grant under sub. (2) (b), the
2requirement that the applicant be completing a federal grant application does not
3apply; or
AB705,8,74 2. Is an individual who is starting or developing a business which has
5significant growth potential, as evidenced by the potential to attract and receive
6early stage financing from 3rd parties, but who needs assistance with a specific facet
7of starting or developing the business.
AB705,8,108 (b) If the applicant seeks a grant or loan under sub. (2) (a), the applicant has
9sufficient funding from sources other than the state to finance at least 25% of the
10project costs.
AB705,8,1111 (c) The applicant has or will have a business location in this state.
AB705,8,1312 (d) If the application relates to a product, the product will be manufactured
13substantially in this state.
AB705,8,1514 (e) If the application relates to a service, the principal place of business from
15which the service will be sold will be located in this state.
AB705,8,1616 (f) All grant moneys will be spent in this state.
AB705,8,21 17(6) Grant and loan distribution plan. No later than December 1 of each
18even-numbered year, the department shall develop a biennial plan for awarding
19grants and loans under sub. (2) and shall submit the plan to the governor and to the
20chief clerk of each house of the legislature, for distribution to the appropriate
21standing committees under s. 13.172 (3).
AB705,8,24 22(7) Administration. (a) In-kind grants of services. The department may
23contract with, and pay the proceeds of any grant under sub. (2) (a) to (d) directly to,
24any person who provides services which the grant is intended to fund.
AB705,9,3
1(b) Rules. The department shall promulgate rules to administer this section.
2The rules shall establish application, reporting, auditing, and monitoring
3requirements.
AB705, s. 5 4Section 5. Nonstatutory provisions.
AB705,9,55 (1) Rules.
AB705,9,146 (a) Emergency rules. Using the procedure under section 227.24 of the statutes,
7the department of commerce may promulgate rules required under section 560.275
8of the statutes, as created by this act, for the period before the effective date of the
9rules submitted under paragraph (b ), but not to exceed the period authorized under
10section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a),
11(2) (b), and (3) of the statutes, the department is not required to provide evidence that
12promulgating a rule under this paragraph as an emergency rule is necessary for the
13preservation of the public peace, health, safety, or welfare and is not required to
14provide a finding of emergency for a rule promulgated under this paragraph.
AB705,9,1815 (b) Permanent rules. The department of commerce shall submit in proposed
16form the rules required under section 560.275 of the statutes, as created by this act,
17to the legislative council staff under section 227.15 (1) of the statutes no later than
18the first day of the 4th month beginning after the effective date of this paragraph.
AB705, s. 6 19Section 6. Appropriation changes.
AB705,9,2520 (1) Authorized positions and promotional activities. In the schedule under
21section 20.005 (3) of the statutes for the appropriation to the department of commerce
22under section 20.143 (1) (a) of the statutes, as affected by the acts of 2003, the dollar
23amount is increased by $100,000 for fiscal year 2003-04 and the dollar amount is
24increased by $200,000 for fiscal year 2004-05 to increase the authorized FTE
25positions for the department by 2.0 GPR positions for the administration of section

1560.275 of the statutes, as created by this act, and to provide funding for educational
2publications and instruction provided by the department to promote the technology
3commercialization grant and loan program.
AB705,10,44 (End)
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