2. The company's headquarters and principal business operations are located
in Wisconsin.
3. The company, including any affiliate, employs at least 75 percent of its
employees in Wisconsin.
4. The company is in need of capital.
5. The company is developing biotechnology or bioscience or bioscience
research methods, as determined by the Reserve Board by rule, and demonstrates
to the Reserve Board that the company has the potential to generate high levels of
successful investment performance and increase employment in this state.
Before providing any moneys from the fund to a certified bioscience company
in the form of a grant, loan, or investment, the Reserve Board must enter into a
contract with the company that includes all of the following requirements:
1. The certified bioscience company must use a grant, loan, or investment from
the fund for research and development related to biotechnology or bioscience or
bioscience research methods.
2. The certified bioscience company must match the amount of any grant, loan,
or investment from the fund with moneys the company has raised from other sources.

3. During the term of the contract, the certified bioscience company may not
relocate its headquarters outside of Wisconsin without the Reserve Board's approval.
Under the bill, any moneys paid to the Reserve Board by a certified bioscience
company must be deposited in the fund and may be re-used by the Reserve Board
for continued grants, loans, and investments subject to the provisions of the bill.
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:
SB21, s. 1 1Section 1. 15.07 (1) (a) 7. of the statutes is created to read:
SB21,4,32 15.07 (1) (a) 7. The members of the Wisconsin next generation reserve board
3appointed under s. 15.77 (1) (h) to (j) shall be appointed as provided in that section.
SB21, s. 2 4Section 2. 15.07 (4) of the statutes, as affected by 2011 Wisconsin Act 10, is
5amended to read:
SB21,4,126 15.07 (4) Quorum. A majority of the membership of a board constitutes a
7quorum to do business and, unless a more restrictive provision is adopted by the
8board, a majority of a quorum may act in any matter within the jurisdiction of the
9board. This subsection does not apply to actions of the government accountability
10board or the school district boundary appeal board as provided in ss. 5.05 (1e) and
11117.05 (2) (a) or the Wisconsin next generation reserve board as provided in s. 15.77
12(3)
.
SB21, s. 3 13Section 3. 15.07 (5) (am) of the statutes is created to read:
SB21,4,1514 15.07 (5) (am) Members of the Wisconsin next generation reserve board, $50
15per day.
SB21, s. 4 16Section 4. 15.77 of the statutes is created to read:
SB21,5,3
115.77 Wisconsin next generation reserve board; creation. (1) There is
2created a Wisconsin next generation reserve board. The board shall consist of the
3following members:
SB21,5,54 (a) One member who has expertise in agriculture and is recognized for
5outstanding knowledge and leadership in bioscience or bioscience research.
SB21,5,96 (b) Two members who, at the time of appointment, serve in senior management
7positions at bioscience companies headquartered in this state that employ fewer
8than 50 employees, including any affiliate, and who, in addition to any other
9responsibilities, have responsibilities related to the financing of the companies.
SB21,5,1310 (c) One member who, at the time of appointment, serves in a senior
11management position at a bioscience company headquartered in this state that
12employs at least 50 employees, including any affiliate, and who, in addition to any
13other responsibilities, has responsibilities related to the financing of the company.
SB21,5,1814 (d) One member who, at the time of appointment, serves in a senior
15management position at a company headquartered in this state that develops or
16manufactures medical devices and employs fewer than 50 employees, including any
17affiliate, and who, in addition to any other responsibilities, has responsibilities
18related to the financing of the company.
SB21,5,2319 (e) One member who, at the time of appointment, serves in a senior
20management position at a company headquartered in this state that develops or
21manufactures medical devices and employs at least 50 employees, including any
22affiliate, and who, in addition to any other responsibilities, has responsibilities
23related to the financing of the company.
SB21,6,224 (f) One member who, at the time of appointment, either has at least 5 years of
25experience directly investing in bioscience companies in this state, or represents a

1group of individual investors that has at least 5 years of experience directly investing
2in bioscience companies in this state.
SB21,6,43 (g) One member who, at the time of appointment, has at least 3 years of
4experience in the merger and acquisition of bioscience companies.
SB21,6,55 (h) One member appointed by BioForward, Inc.
SB21,6,86 (i) One member who has expertise in bioscience or bioscience research, who
7shall be appointed by the Board of Regents of the University of Wisconsin System and
8who shall serve as a nonvoting member at the pleasure of the Board of Regents.
SB21,6,129 (j) One member who has expertise in bioscience or bioscience research, who
10shall be appointed by the Wisconsin Association of Independent Colleges and
11Universities and who shall serve as a nonvoting member at the pleasure of the
12association.
SB21,6,1413 (k) The executive director of the investment board, or his or her designee, who
14shall serve as a nonvoting member.
SB21,6,16 15(2) The members of the board identified in sub. (1) (a) to (h) shall be appointed
16for 4-year terms.
SB21,6,19 17(3) A majority of the voting members of the board constitutes a quorum for the
18purpose of conducting its business and exercising its powers and for all other
19purposes. Action may be taken by the board upon a vote of a majority of a quorum.
SB21, s. 5 20Section 5. 19.42 (10) (Lm) of the statutes is created to read:
SB21,6,2521 19.42 (10) (Lm) The members of the Wisconsin next generation reserve board
22who are appointed by BioForward, Inc., by the Board of Regents of the University of
23Wisconsin System, and by the Wisconsin Association of Independent Colleges and
24Universities and the executive director of the Wisconsin next generation reserve
25board.
SB21, s. 6
1Section 6. 19.42 (13) (km) of the statutes is created to read:
SB21,7,62 19.42 (13) (km) The members of the Wisconsin next generation reserve board
3who are appointed by BioForward, Inc., by the Board of Regents of the University of
4Wisconsin System, and by the Wisconsin Association of Independent Colleges and
5Universities and the executive director of the Wisconsin next generation reserve
6board.
SB21, s. 7 7Section 7. 20.195 of the statutes is created to read:
SB21,7,9 820.195 Wisconsin next generation reserve board. There is appropriated
9to the Wisconsin next generation reserve board for the following program:
SB21,7,16 10(1) Assistance to certified bioscience companies. (q) General program
11operations and loans, grants, and investments.
From the Wisconsin next generation
12reserve fund, a sum sufficient to make loans and provide grants to, and make
13investments in, certified bioscience companies as provided in ch. 555 and for general
14program operations and administrative expenses. Not more than the following
15amounts may be expended under this paragraph for general program operations and
16administrative expenses:
SB21,7,1817 1. In fiscal year 2012-13, 5 percent of the moneys in the Wisconsin next
18generation reserve fund.
SB21,7,2019 2. In fiscal year 2013-14, 5 percent of the moneys in the Wisconsin next
20generation reserve fund.
SB21,7,2221 3. In fiscal year 2014-15, 2 percent of the moneys in the Wisconsin next
22generation reserve fund.
SB21,7,2423 4. In fiscal year 2015-16 and in each fiscal year thereafter, 0.5 percent of the
24moneys in the Wisconsin next generation reserve fund.
SB21, s. 8 25Section 8. 20.536 (1) (k) of the statutes is amended to read:
SB21,8,4
120.536 (1) (k) General program operations. All moneys received from
2assessments made under s. 25.187 (2) and, from charges made under s. 25.17 (9), and
3from assessments or charges made under s. 25.17 (72) or (73),
for the purpose of
4conducting general program operations.
SB21, s. 9 5Section 9. 25.14 (1) (a) (intro.) of the statutes is amended to read:
SB21,8,106 25.14 (1) (a) (intro.) There is created a state investment fund under the
7jurisdiction and management of the board to be operated as an investment trust for
8the purpose of managing the securities of all funds that are required by law to be
9invested in the state investment fund, the Wisconsin next generation reserve fund,
10and all of the state's funds specified in s. 25.17 (1), except all of the following:
SB21, s. 10 11Section 10. 25.17 (72) of the statutes is created to read:
SB21,8,2512 25.17 (72) Have authority to provide advice and services requested by a state
13agency, as defined in s. 20.001 (1), or authority, as defined in s. 16.417 (1) (b), or
14business entity owned or controlled by a state agency or authority, relating to
15managing or administering money and property controlled by the agency, authority,
16or business entity for any purpose, including economic development in this state.
17The scope of any advice or services provided to a state agency, authority, or business
18entity under this subsection shall be defined by agreement between the board and
19the agency, authority, or business entity. This agreement shall require the cost of any
20advice or services provided by the board to be paid by the agency, authority, or
21business entity and the agreement may authorize the board to make assessments
22against the money and property controlled by the agency, authority, or business
23entity or to charge the agency, authority, or business entity for the cost of any advice
24or services provided. All moneys received by the board under this subsection shall
25be credited to the appropriation account under s. 20.536 (1) (k).
SB21, s. 11
1Section 11. 25.17 (73) of the statutes is created to read:
SB21,9,82 25.17 (73) Have authority to provide facilities to any state agency, as defined
3in s. 20.001 (1), or authority, as defined in s. 16.417 (1) (b), or business entity owned
4or controlled by a state agency or authority, in accordance with any agreement
5between the board and the agency, authority, or business entity. This agreement
6shall require the cost of facilities provided by the board to be paid by the agency,
7authority, or business entity. All moneys received by the board under this subsection
8shall be credited to the appropriation account under s. 20.536 (1) (k).
SB21, s. 12 9Section 12. 25.90 of the statutes is created to read:
SB21,9,15 1025.90 Wisconsin next generation reserve fund. There is established a
11separate nonlapsible trust fund designated as the Wisconsin next generation reserve
12fund. The fund shall consist of all moneys deposited in the fund under ss. 73.16,
13555.02 (2) (c) and 555.03 (3), together with all donations, gifts, or bequests made to
14the fund, all moneys transferred to the fund from other funds, and all income or
15interest earned by the fund.
SB21, s. 13 16Section 13. 73.16 of the statutes is created to read:
SB21,9,23 1773.16 Wisconsin next generation reserve fund. (1) In this section,
18"qualifying company" means a person whose principal business activity code in the
19North American Industry Classification System, 2007 edition, published by the
20federal office of management and budget, is one of the following: 311221, 311222,
21311223, 325193, 325199, 325221, 325311, 325312, 325314, 325320, 325411, 325412,
22325413, 325414, 334510, 334516, 334517, 339112, 339113, 339114, 339115, 339116,
23541380, 541711, 541712, 621491, 621493, 621511, 621512, or 622110.
SB21,9,25 24(2) (a) In July 2012, the department of revenue shall determine the total
25amount of withholding taxes due and payable under subch. X of ch. 71 from

1qualifying companies during the period beginning on July 1, 2011, and ending on
2June 30, 2012.
SB21,10,93 (b) Subject to par. (d), in each fiscal year, beginning with the fiscal year that
4begins on July 1, 2012, the department of revenue shall deposit into the Wisconsin
5next generation reserve fund an amount equal to 95 percent of the amount of
6withholding taxes due and payable under subch. X of ch. 71 from qualifying
7companies in that fiscal year that exceeds the amount determined under par. (a). The
8department may make such deposits on a quarterly basis based on the department's
9estimate of the withholding taxes due and payable by qualifying companies.
SB21,10,1210 (c) A person who is subject to withholding taxes under subch. X of ch. 71 shall
11indicate to the department of revenue whether it is a qualifying company for
12purposes of this section in the manner determined by the department.
SB21,10,1613 (d) The department of revenue shall not deposit into the Wisconsin next
14generation reserve fund more than $50,000,000 in any fiscal year, and the total
15amount deposited may not exceed $500,000,000. The department shall not make
16deposits under this section on or after December 31, 2026.
SB21, s. 14 17Section 14. 230.08 (2) (yo) of the statutes is created to read:
SB21,10,1918 230.08 (2) (yo) The executive director and administrative assistant of the
19Wisconsin next generation reserve board.
SB21, s. 15 20Section 15. Chapter 555 of the statutes is created to read:
SB21,10,2121 CHAPTER 555
SB21,10,2322 Wisconsin next generation
23 RESERVE board
SB21,10,24 24555.01Definitions. In this chapter:
SB21,10,25 25(1) "Board" means the Wisconsin next generation reserve board.
SB21,11,2
1(2) "Certified bioscience company" means a person certified by the board under
2s. 555.03 (2).
SB21,11,5 3(3) "Qualifying company" has the meaning given in s. 73.16, except that
4"qualifying company" does not include a business that has as its principal business
5activity the operation of a hospital as defined in s. 50.33 (2).
SB21,11,7 6(4) "Fund" means the Wisconsin next generation reserve fund established
7under s. 25.90.
SB21,11,11 8555.02 Wisconsin next generation reserve fund. (1) Executive director.
9The board shall employ an executive director who has expertise in private equity
10investment. In reviewing candidates for executive director, the board shall consider
11all of the following:
SB21,11,1312 (a) The extent of the candidate's experience and expertise in private equity
13investment.
SB21,11,1514 (b) The candidate's investment experience related to start-up bioscience
15companies.
SB21,11,1716 (c) The candidate's experience related to seed or early stage business
17investments.
SB21,11,1818 (d) Any other criteria the board considers relevant.
SB21,11,21 19(2) Grants, loans, and investments. (a) From the appropriation under s.
2020.195 (1) (q), the board may make a grant or loan to a certified bioscience company,
21or the board may make an investment directly in a certified bioscience company.
SB21,11,2522 (b) Before the board makes a grant, loan, or investment under par. (a), the
23board shall contract with the certified bioscience company. In addition to any other
24terms required or negotiated by the board, that contract shall include all of the
25following conditions:
SB21,12,3
11. The certified bioscience company shall use a grant, loan, or investment
2provided by the board for research and development related to biotechnology or
3bioscience or bioscience research methods, as determined by the board by rule.
SB21,12,54 2. The certified bioscience company shall match the amount of the board's,
5grant, loan, or investment with moneys the company has raised from other sources.
SB21,12,86 3. Unless approved by the board, the certified bioscience company may not
7relocate its headquarters outside of this state during the term of the contract under
8this paragraph.
SB21,12,109 (c) Any moneys paid to the board by a certified bioscience company shall be
10deposited in the fund.
SB21,12,13 11555.03 Certified bioscience companies. (1) Application. Any person may
12apply to the board on a form prescribed by the board for certification under this
13section. The application shall include all of the following:
SB21,12,1414 (a) The name, address, and tax identification number of the person.
SB21,12,1615 (b) A description of the principal business activities of the person and the
16locations at which those activities are conducted.
SB21,12,1917 (c) The person's principal business activity code under the North American
18Industry Classification System, 2007 edition, published by the federal office of
19management and budget.
SB21,12,2020 (d) Any other information the board requires.
SB21,12,24 21(2) Certification. The board may certify a person that submits an application
22under sub. (1) to be eligible to receive a grant, loan, or investment under s. 555.02
23if the board determines after conducting an investigation that the person meets all
24of the following conditions:
SB21,12,2525 (a) The person is a qualifying company.
SB21,13,2
1(b) The person is headquartered in, and has its principal business operations
2located in, this state.
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