AB1177,23,1916 (L) The corporation or partnership and applicable fund manager do not receive
17any of the profits and gains on assets in any investment fund described in par. (a),
18unless the total amount distributed to all investors in the fund is at least equal to the
19total amount invested, plus 80 percent of the profits and gains.
AB1177,24,5 20(2) Certification for tax credits. (a) Generally. The board, in consultation
21with the capital investment corporation or partnership, shall promulgate rules
22establishing a procedure for the board to certify businesses as eligible to receive from
23fund managers investments that qualify an investor for tax credits under s. 71.07
24(2r) or (2s), 71.28 (2r) or (2s), or 71.47 (2r) or (2s). The rules shall require a business
25that desires to obtain a certification to file an application with the board. The rules

1shall require an applicant for certification to provide the board with any information
2the board determines is necessary to ensure eligibility for certification and
3compliance with this section and rules promulgated under this section. The board
4shall consult with the capital investment corporation or partnership in determining
5whether to certify any applicant.
AB1177,24,96 (b) Early stage seed investments. The board may certify a business, including
7a Native American business, as eligible to receive from fund managers investments
8that qualify the investors for tax credits under s. 71.07 (2r) (b) 1. or (2s), 71.28 (2r)
9(b) 1. or (2s), or 71.47 (2r) (b) 1. or (2s) only if the business satisfies all of the following:
AB1177,24,1110 1. The business is headquartered in this state and its principal business
11operations are located in this state.
AB1177,24,1312 2. The business is in need of seed capital and is unable to obtain conventional
13financing, as defined by the department by rule.
AB1177,24,1514 3. The business has no more than 100 employees, at least 75 percent of whom
15are employed in this state.
AB1177,24,1816 4. During its 2 most recent fiscal years, if any, the business had an average
17annual net income, after federal income taxes, of not more than $2,000,000, as
18determined in accordance with generally accepted accounting principles.
AB1177,24,2019 5. The business has a net worth of not more than $5,000,000, except that this
20subdivision does not apply if the business is a Native American business.
AB1177,24,2221 6. The business is not predominantly engaged in professional services provided
22by accountants, lawyers, or physicians.
AB1177,24,2323 7. The business is not engaged in the development of real estate for resale.
AB1177,24,2424 8. The business is not engaged in commercial banking or lending.
AB1177,25,4
1(c) Venture growth investments. The board may certify a business, including
2a Native American business, as eligible to receive from fund managers investments
3that qualify the investors for tax credits under s. 71.07 (2r) (b) 3. or (2s), 71.28 (2r)
4(b) 3. or (2s), or 71.47 (2r) (b) 3. or (2s) only if the business satisfies all of the following:
AB1177,25,65 1. The business is headquartered in this state and has significant business
6operations in this state.
AB1177,25,87 2. At least 51 percent of the business's employees are employed in this state or
8the business employs more than 500 employees in this state.
AB1177,25,129 3. During its 2 most recent fiscal years, the business had an average annual
10net income, after federal income taxes and excluding any carry-over losses, of less
11than $20,000,000, as determined in accordance with generally accepted accounting
12principles.
AB1177,25,1413 4. The business has a net worth of less than $75,000,000, except that this
14subdivision does not apply if the business is a Native American business.
AB1177,25,1615 5. The business is not predominantly engaged in professional services provided
16by accountants, lawyers, or physicians.
AB1177,25,1817 6. The business has been in existence for at least one year, but less than 10
18years.
AB1177,25,2219 (d) Women-, minority-, and community-based investments. The board may
20certify a business as eligible to receive from fund managers investments that qualify
21the investors for tax credits under s. 71.07 (2r) (b) 4. or (2s), 71.28 (2r) (b) 4. or (2s),
22or 71.47 (2r) (b) 4. or (2s) only if any of the following apply:
AB1177,26,223 1. The business is headquartered in this state, has significant business
24operations in this state, and is at least 51 percent owned, controlled, and actively

1managed by one or more women or minority group members, as defined in s. 560.036
2(1) (f).
AB1177,26,53 2. The business is headquartered in this state, has significant business
4operations in this state, and facilitates access to savings and credit by low-income
5consumers.
AB1177,26,86 3. The investments are made as part of a community-based investment
7strategy implemented by the fund manager and the business satisfies all of the
8requirements under par. (b) 1. to 8.
AB1177,26,129 (e) Angel investments. The board may certify a business as eligible to receive
10from angel investors investments that qualify the investors for tax credits under s.
1171.07 (2r) (b) 2. or (2s), 71.28 (2r) (b) 2. or (2s), or 71.47 (2r) (b) 2. or (2s) only if the
12business satisfies par (b) 1. to 8.
AB1177,26,24 13(3) Notice. (a) Certification. Upon approval of an application under sub. (2)
14(b) to (e), the board shall issue a written notice of certification to the applicable
15business and shall provide a copy of the notice to the capital investment corporation
16or partnership, the investment board, and the department of revenue, except that
17the board need not provide a copy of any notice of certification under sub. (2) (e) to
18the capital investment corporation or partnership or the investment board. Each
19notice shall include the following statement: "The Wisconsin economic leadership
20board has not recommended or approved an investment in this entity or assessed
21the merits or risks of such an investment. Investors should rely solely on their
22own investigation and analysis and seek investment, financial, legal, and tax
23advice before making their own decisions regarding investment in this entity
."
24The board shall provide any person with a copy of the notice upon request.
AB1177,27,7
1(b) Decertification. 1. Upon the discontinuance of a certification under sub. (2),
2the board shall issue a written notice of decertification to the applicable business and
3shall provide a copy of the notice to the capital investment corporation or
4partnership, the investment board, and the department of revenue, except that the
5board need not provide a copy of any notice of decertification of a business certified
6under sub. (2) (e) to the capital investment corporation or partnership or the
7investment board.
AB1177,27,98 2. Discontinuance of a certification under sub. (2) does not affect any current
9offering of ownership interests in the decertified business.
AB1177,27,19 10(4) Other board activities. (a) Promotional activities and legislation. The
11board, in consultation with the capital investment corporation or partnership, shall
12actively promote the purposes of this program under this section but shall not
13recommend that any person make a particular investment. The board shall solicit
14institutional investors to invest with fund managers, shall encourage fund managers
15to invest in businesses described in sub. (2) (b) to (d), and shall solicit businesses
16described in sub. (2) (b) to (d) that may benefit from investments made by fund
17managers. The board shall recommend to the legislature any statutory changes that
18the board considers necessary or proper to carry out the purposes of the program
19under this section.
AB1177,28,220 (b) Report. Annually, no later than September 15, the board shall submit a
21report to the chief clerk of each house of the legislature for distribution to the
22legislature under s. 13.172 (2), describing the performance of investments made by
23fund managers, the total amount of tax credits claimed under ss. 71.07 (2r) or (2s),
2471.28 (2r) or (2s), and 71.47 (2r) or (2s) with regard to those investments, and the
25economic impact, if any, the investments have had on this state. The department of

1revenue shall provide the board with any information the board requests for
2preparation of the report under this paragraph.
AB1177, s. 26 3Section 26. 560.203 of the statutes is created to read:
AB1177,28,5 4560.203 Tribal gaming compact investment rebate. (1) Definitions. In
5this section:
AB1177,28,66 (a) "Indian gaming receipts" has the meaning given in s. 569.01 (1m).
AB1177,28,77 (b) "Indian tribe" has the meaning given in s. 569.01 (3).
AB1177,28,13 8(2) Rebates to Indian tribes. (a) Annually, not later than September 1, the
9department shall calculate the amount of the rebate to be made to each eligible
10Indian tribe from which the state has received gaming receipts. The amount of a
11rebate to an eligible Indian tribe shall be equal to 5 percent of the sum of Indian
12gaming receipts received by the state in the immediately preceding fiscal year from
13the eligible Indian tribe, except as follows:
AB1177,28,1514 1. A rebate to an eligible Indian tribe under this section may not exceed
15$10,000,000.
AB1177,28,1716 2. The total amount of all rebates under this section may not exceed
17$100,000,000 per year.
AB1177,28,2018 (b) Annually, the department shall make a rebate to an eligible Indian tribe
19from the appropriation under s. 20.143 (1) (kn) in the amount calculated by the
20department under par. (a).
AB1177,28,23 21(3) Eligibility. An Indian tribe is eligible to receive a rebate under this section
22if the Indian tribe has entered into an agreement with the department to invest a
23rebate under this section in an investment fund established under s. 560.20.
AB1177, s. 27 24Section 27. Nonstatutory provisions.
AB1177,28,2525 (1) Rules.
AB1177,29,10
1(a) Emergency rules. Using the procedure under section 227.24 of the statutes,
2the Wisconsin economic leadership board may promulgate rules required under
3section 560.20 of the statutes, as created by this act, for the period before the effective
4date of the rules submitted under paragraph (b ), but not to exceed the period
5authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding
6section 227.24 (1) (a), (2) (b), and (3) of the statutes, the board is not required to
7provide evidence that promulgating a rule under this paragraph as an emergency
8rule is necessary for the preservation of the public peace, health, safety, or welfare
9and is not required to provide a finding of emergency for a rule promulgated under
10this paragraph.
AB1177,29,1511 (b) Permanent rules. The Wisconsin economic leadership board shall submit
12in proposed form the rules required under section 560.20 of the statutes, as created
13by this act, to the legislative council staff under section 227.15 (1) of the statutes no
14later than the first day of the 4th month beginning after the effective date of this
15paragraph.
AB1177, s. 28 16Section 28. Effective date.
AB1177,29,1817 (1) This act takes effect on January 1, 2006, or on the day after publication,
18whichever is later.
AB1177,29,1919 (End)
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