SB169: Bill Text

SB169,6,2 (c) 1. Of the moneys designated under par. (b), the investment manager may not invest more than $10,000,000 in a single venture capital fund.

SB169,6,7 2. Of the moneys designated under par. (b), the investment manager shall attempt to invest at least one-half of those moneys in venture capital funds within 12 months after the date the investment manager executes the contract under sub. (4) (a), and the investment manager shall attempt to invest all of those moneys in venture capital funds within 24 months after that date.

SB169,6,10 (d) The investment manager shall contract with each venture capital fund that receives moneys under par. (b). Each contract shall require the venture capital fund to do all of the following:

SB169,6,24 1. Invest all of the moneys it receives under par. (b) in one or more businesses that are headquartered in this state and employ at least 50 percent of their full-time employees, including any subsidiary or other affiliated entity, in this state, and invest at least one-half of those moneys in one or more businesses that employ fewer than 150 full-time employees, including any subsidiary or other affiliated entity, when the venture capital fund first invests moneys in the business under this section. If, within 3 years after the venture capital fund makes an investment in a business under this subdivision, the business relocates its headquarters outside of this state or fails to employ at least 50 percent of its full-time employees, including any subsidiary or other affiliated entity, in this state, the venture capital fund shall recover from the business the total amount of moneys the venture capital fund invested in the business under this subdivision and subd. 4. and reinvest those moneys in one or more businesses that are eligible to receive an investment under this subdivision, subject to the requirements of this section.

SB169,7,3 2. Invest at least one-half of any moneys it receives under par. (b) in businesses within 24 months after the date it receives those moneys and invest all of those moneys in businesses within 48 months after that date.

SB169,7,8 3. Invest all of the moneys it receives under paragraph (b) in businesses in the agriculture, information technology, engineered products, advanced manufacturing, or medical devices and imaging industries and attempt to ensure that all of those moneys are invested in businesses that are diverse with respect to geographic location within this state.

SB169,7,14 4. At least match any moneys it receives under par. (b) and invests in a business with an investment in that business of moneys the venture capital fund has raised from sources other than the investment manager. The investment manager shall attempt to ensure that, on average, for every $1 a venture capital fund receives under par. (b) and invests in a business, the venture capital fund invests $2 in that business from sources other than the investment manager.

SB169,7,16 5. Provide to the investment manager the information necessary for the investment manager to complete the annual report under sub. (7) (a).

SB169,7,20 6. Disclose to the investment manager and the corporation any interest that the venture capital fund or an owner, stockholder, partner, officer, director, member, employee, or agent of the venture capital fund holds in a business in which the venture capital fund invests or intends to invest moneys received under par. (b).

SB169,7,24 (e) The investment manager's profit-sharing agreement with each venture capital fund that receives moneys under par. (b) shall be on terms that are substantially equivalent to the terms applicable for other funding sources of the venture capital fund.

SB169,8,4 (6) Special requirements for investments of moneys contributed by the corporation. (a) The investment manager shall hold in an escrow account its gross proceeds from all investments of the moneys designated under sub. (5) (b) 1. until the investment manager satisfies par. (b).

SB169,8,7 (b) At least annually, the investment manager shall pay any moneys held under par. (a) to the secretary of administration for deposit into the general fund until the investment manager has paid a total of $25,000,000 under this paragraph.

SB169,8,11 (c) After the investment manager satisfies par. (b), the investment manager shall pay 90 percent of its gross proceeds from investments of the moneys designated under sub. (5) (b) 1. to the secretary of administration for deposit into the general fund.

SB169,8,15 (7) Annual report of the investment manager. (a) Annually, within 90 days after the end of the investment manager's fiscal year, the investment manager shall submit a report to the corporation for that fiscal year that includes all of the following:

SB169,8,17 1. An audit of the investment manager's financial statements performed by an independent certified public accountant.

SB169,8,19 2. The investment manager's internal rate of return from investments under sub. (5) (b).

SB169,8,21 3. For each venture capital fund that contracts with the investment manager under sub. (5) (d), all of the following:

SB169,8,22 a. The name and address of the venture capital fund.

SB169,8,23 b. The amounts invested in the venture capital fund under sub. (5) (b).

SB169,8,25 c. An accounting of any fee the venture capital fund paid to itself or any principal or manager of the venture capital fund.

SB169,9,2 4. For each business in which a venture capital fund held an investment of moneys the venture capital fund received under sub. (5) (b), all of the following:

SB169,9,3 a. The name and address of the business.

SB169,9,4 b. A description of the nature of the business.

SB169,9,6 c. An identification of the venture capital fund that made the investment in the business.

SB169,9,8 d. The amount of each investment in the business and the amount invested by the venture capital fund from funding sources other than the investment manager.

SB169,9,10 e. The internal rate of return realized by the venture capital fund on the investment in the business.

SB169,9,15 f. A statement of the number of employees the business employed when the venture capital fund first invested moneys in the business that the venture capital fund received under sub. (5) (b), the number of employees the business employed on the first day of the investment manager's fiscal year, and the number of employees the business employed on the last day of the investment manager's fiscal year.

SB169,9,18 (b) No later than 10 days after it receives the investment manager's report under par. (a), the corporation shall submit the report to the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2).

SB169,9,21 (8) Corporation progress reports. In 2015 and 2018, no later than March 1, the corporation shall submit reports to the joint committee on finance that include all of the following:

SB169,9,23 (a) A comprehensive assessment of the performance to date of the investment program under this section.

SB169,10,3 (b) Any recommendations the corporation has for improvement of the investment program under this section and the specific actions the corporation intends to take or proposes to be taken to implement those recommendations.

SB169,10,6 (c) Any recommendations the investment board has for improvement of the investment program under this section and the specific actions the investment board proposes to be taken to implement those recommendations.

SB169,10,7 (End)