AB888: Bill Text

AB888,7,4 (2) The members of the board identified in sub. (1) (a) to (h) shall be appointed for 4-year terms.

AB888,7,7 (3) A majority of the voting members of the board constitutes a quorum for the purpose of conducting its business and exercising its powers and for all other purposes. Action may be taken by the board upon a vote of a majority of a quorum.

AB888,6 Section 6. 19.42 (10) (Lm) of the statutes is created to read:

AB888,7,13 19.42 (10) (Lm) The members of the Wisconsin next generation reserve board who are appointed by BioForward, Inc., by the Board of Regents of the University of Wisconsin System, and by the Wisconsin Association of Independent Colleges and Universities and the executive director of the Wisconsin next generation reserve board.

AB888,7 Section 7. 19.42 (13) (km) of the statutes is created to read:

AB888,7,19 19.42 (13) (km) The members of the Wisconsin next generation reserve board who are appointed by BioForward, Inc., by the Board of Regents of the University of Wisconsin System, and by the Wisconsin Association of Independent Colleges and Universities and the executive director of the Wisconsin next generation reserve board.

AB888,8 Section 8. 20.195 of the statutes is created to read:

AB888,7,22 20.195 Wisconsin next generation reserve board. There is appropriated to the Wisconsin next generation reserve board for the following program:

AB888,8,4 (1) Assistance to certified bioscience companies. (q) General program operations and loans, grants, and investments. From the Wisconsin next generation reserve fund, a sum sufficient to make loans and provide grants to, and make investments in, certified bioscience companies as provided in ch. 555 and for general program operations and administrative expenses. Not more than the following amounts may be expended under this paragraph for general program operations and administrative expenses:

AB888,8,6 1. In fiscal year 2017-18, 5 percent of the moneys in the Wisconsin next generation reserve fund.

AB888,8,8 2. In fiscal year 2018-19, 5 percent of the moneys in the Wisconsin next generation reserve fund.

AB888,8,10 3. In fiscal year 2019-20, 2 percent of the moneys in the Wisconsin next generation reserve fund.

AB888,8,12 4. In fiscal year 2020-21 and in each fiscal year thereafter, 0.5 percent of the moneys in the Wisconsin next generation reserve fund.

AB888,8,15 (r) Additional operational or administrative expenses. From the Wisconsin next generation reserve fund, a sum sufficient equal to any amount authorized under s. 555.06 for general program operations and administrative expenses.

AB888,9 Section 9. 20.536 (1) (k) of the statutes is amended to read:

AB888,8,20 20.536 (1) (k) General program operations. All moneys received from assessments made under s. 25.187 (2) and, from charges made under s. 25.17 (9), and from assessments or charges made under s. 25.17 (73) or (74), for the purpose of conducting general program operations.

AB888,10 Section 10. 25.14 (1) (a) (intro.) of the statutes is amended to read:

AB888,9,2 25.14 (1) (a) (intro.) There is created a state investment fund under the jurisdiction and management of the board to be operated as an investment trust for the purpose of managing the securities of all funds that are required by law to be invested in the state investment fund, the Wisconsin next generation reserve fund, and all of the state's funds specified in s. 25.17 (1), except all of the following:

AB888,11 Section 11. 25.17 (73) of the statutes is created to read:

AB888,9,17 25.17 (73) Have authority to provide advice and services requested by a state agency, as defined in s. 20.001 (1), or authority, as defined in s. 16.417 (1) (b), or business entity owned or controlled by a state agency or authority, relating to managing or administering money and property controlled by the agency, authority, or business entity for any purpose, including economic development in this state. The scope of any advice or services provided to a state agency, authority, or business entity under this subsection shall be defined by agreement between the board and the agency, authority, or business entity. This agreement shall require the cost of any advice or services provided by the board to be paid by the agency, authority, or business entity and the agreement may authorize the board to make assessments against the money and property controlled by the agency, authority, or business entity or to charge the agency, authority, or business entity for the cost of any advice or services provided. All moneys received by the board under this subsection shall be credited to the appropriation account under s. 20.536 (1) (k).

AB888,12 Section 12. 25.17 (74) of the statutes is created to read:

AB888,9,25 25.17 (74) Have authority to provide facilities to any state agency, as defined in s. 20.001 (1), or authority, as defined in s. 16.417 (1) (b), or business entity owned or controlled by a state agency or authority, in accordance with any agreement between the board and the agency, authority, or business entity. This agreement shall require the cost of facilities provided by the board to be paid by the agency, authority, or business entity. All moneys received by the board under this subsection shall be credited to the appropriation account under s. 20.536 (1) (k).

AB888,13 Section 13. 25.90 of the statutes is created to read:

AB888,10,7 25.90 Wisconsin next generation reserve fund. There is established a separate nonlapsible trust fund designated as the Wisconsin next generation reserve fund. The fund shall consist of all moneys deposited in the fund under ss. 73.17, 555.02 (2) (c) and 555.03 (3), together with all donations, gifts, or bequests made to the fund, all moneys transferred to the fund from other funds, and all income or interest earned by the fund.

AB888,14 Section 14. 73.17 of the statutes is created to read:

AB888,10,15 73.17 Wisconsin next generation reserve fund. (1) In this section, "qualifying company" means a person whose principal business activity code in the North American Industry Classification System, 2012 edition, published by the federal office of management and budget, is one of the following: 311221, 311224, 325193, 325199, 325220, 325311, 325312, 325314, 325320, 325411, 325412, 325413, 325414, 334510, 334516, 334517, 339112, 339113, 339114, 339115, 339116, 541380, 541711, 541712, 621491, 621493, 621511, 621512, or 622110.

AB888,10,18 (2) (a) In July 2016, the department of revenue shall determine the total amount of withholding taxes due and payable under subch. X of ch. 71 from qualifying companies for calendar year 2015.

AB888,10,23 (b) Subject to par. (d), on July 1, 2017, and on each July 1 thereafter, ending on July 1, 2031, the department of revenue shall deposit into the Wisconsin next generation reserve fund an amount equal to 95 percent of the amount of withholding taxes due and payable under subch. X of ch. 71 from qualifying companies in the previous calendar year that exceeds the amount determined under par. (a).

AB888,11,3 (c) A person who is subject to withholding taxes under subch. X of ch. 71 shall indicate to the department of revenue whether it is a qualifying company for purposes of this section in the manner determined by the department.

AB888,11,6 (d) The department of revenue shall not deposit into the Wisconsin next generation reserve fund more than $15,000,000 on July 1, 2017, or $50,000,000 on any July 1 thereafter, and the total amount deposited may not exceed $350,000,000.

AB888,11,19 (e) After the department of revenue deposits a total of $350,000,000 into the fund under par. (d), and subject to the requirements of this paragraph, the department shall continue depositing moneys into the fund under par. (b), not to exceed an additional total amount of $150,000,000 in deposits. Before the department continues those deposits, the department shall notify the joint committee on finance in writing that the department intends to do so. If, within 14 working days after the date of that notice, the cochairpersons of the committee do not notify the department that the committee has scheduled a meeting to review the continuation of deposits into the fund, the department shall continue those deposits. If, within 14 working days after the date of that notice, the cochairpersons of the committee notify the department that the committee has scheduled a meeting to review the department's continuation of deposits into the fund, the department may continue those deposits only upon approval of the committee.

AB888,15 Section 15. 230.08 (2) (yo) of the statutes is created to read:

AB888,11,22 230.08 (2) (yo) The executive director and administrative assistant of the Wisconsin next generation reserve board.

AB888,16 Section 16. Chapter 555 of the statutes is created to read:

AB888,11,24 CHAPTER 555

AB888,12,2 Wisconsin next generation RESERVE board

AB888,12,3 555.01 Definitions. In this chapter:

AB888,12,4 (1) "Board" means the Wisconsin next generation reserve board.

AB888,12,6 (2) "Certified bioscience company" means a person certified by the board under s. 555.03 (2).

AB888,12,9 (3) "Qualifying company" has the meaning given in s. 73.17 (1), except that "qualifying company" does not include a business that has as its principal business activity the operation of a hospital as defined in s. 50.33 (2).

AB888,12,11 (4) "Fund" means the Wisconsin next generation reserve fund established under s. 25.90.

AB888,12,15 555.02 Wisconsin next generation reserve fund. (1) Executive director. The board shall employ an executive director who has expertise in private equity investment. In reviewing candidates for executive director, the board shall consider all of the following:

AB888,12,17 (a) The extent of the candidate's experience and expertise in private equity investment.

AB888,12,19 (b) The candidate's investment experience related to start-up bioscience companies.

AB888,12,21 (c) The candidate's experience related to seed or early stage business investments.

AB888,12,22 (d) Any other criteria the board considers relevant.

AB888,13,2 (2) Grants, loans, and investments. (a) Subject to s. 555.055, from the appropriation under s. 20.195 (1) (q), the board may make a grant or loan to a certified bioscience company, or the board may make an investment directly in a certified bioscience company.

AB888,13,6 (b) Before the board makes a grant, loan, or investment under par. (a), the board shall contract with the certified bioscience company. In addition to any other terms required or negotiated by the board, that contract shall include all of the following conditions:

AB888,13,9 1. The certified bioscience company shall use a grant, loan, or investment provided by the board for research and development related to biotechnology or bioscience or bioscience research methods, as determined by the board by rule.

AB888,13,11 2. The certified bioscience company shall match the amount of the board's, grant, loan, or investment with moneys the company has raised from other sources.

AB888,13,14 3. Unless approved by the board, the certified bioscience company may not relocate its headquarters outside of this state during the term of the contract under this paragraph.

AB888,13,16 (c) Any moneys paid to the board by a certified bioscience company shall be deposited in the fund.

AB888,13,19 (d) The total value of all grants the board provides under this subsection in a fiscal year may not equal more than 10 percent of the total value of all grants, loans, and investments the board makes in that fiscal year.

AB888,13,22 555.03 Certified bioscience companies. (1) Application. Any person may apply to the board on a form prescribed by the board for certification under this section. The application shall include all of the following:

AB888,13,23 (a) The name, address, and tax identification number of the person.

AB888,13,25 (b) A description of the principal business activities of the person and the locations at which those activities are conducted.

AB888,14,3 (c) The person's principal business activity code under the North American Industry Classification System, 2012 edition, published by the federal office of management and budget.

AB888,14,4 (d) Any other information the board requires.

AB888,14,8 (2) Certification. The board may certify a person that submits an application under sub. (1) to be eligible to receive a grant, loan, or investment under s. 555.02 if the board determines after conducting an investigation that the person meets all of the following conditions:

AB888,14,9 (a) The person is a qualifying company.

AB888,14,11 (b) The person is headquartered in, and has its principal business operations located in, this state.

AB888,14,13 (c) The person, including any affiliate, employs at least 75 percent of its employees in this state.

AB888,14,14 (d) The person is in need of capital.

AB888,14,18 (e) The person is developing biotechnology or bioscience or bioscience research methods, as determined by the board by rule and the person demonstrates to the board's satisfaction that the person has the potential to generate high levels of successful investment performance and to increase employment in this state.

AB888,14,19 (h) The person meets any other conditions established by the board.

AB888,14,21 (3) Application fee. The board may charge a fee to an applicant for certification under this section. The fee shall be deposited in the fund.

AB888,15,2 555.04 Contracting authority. Notwithstanding ss. 16.70 to 16.78, the board may enter into any contract with the investment board as provided in s. 25.17 (73) and (74), including any contract relating to the furnishing of personnel or office space, to be paid as provided in s. 25.17 (73) and (74), may procure insurance, and may execute any other contract necessary or convenient to the performance of the board's powers and duties under this chapter.

AB888,15,5 555.05 Annual report. Annually, by July 1, the board shall submit to the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2), a report that includes all of the following:

AB888,15,6 (1) An accounting of the revenue received in the fund under s. 73.17 (2).

AB888,15,8 (2) An accounting of all expenditures from the fund by the board for any purpose.

AB888,15,10 (3) For each each certified bioscience company that received a grant, loan, or investment from the board, all of the following:

AB888,15,11 (a) The name and address of the certified bioscience company.

AB888,15,13 (b) A description of the nature of the business conducted by the certified bioscience company.

AB888,15,14 (c) The amount of the grant, loan, or investment.

AB888,15,16 (d) A description of the purposes for which the certified bioscience company used or is using the grant, loan, or investment.

AB888,15,19 (e) A statement of the number of employees the certified bioscience company employed on January 1 of the preceding year and the number of employees the company employed on December 31 of that year.

AB888,15,21 (4) An accounting of the internal rate of return realized by the board on its total loans to and investments in certified bioscience companies.

AB888,15,23 (5) An accounting of the internal rate of return realized by the board on each loan to or investment in each certified bioscience company.

AB888,16,13 555.055 Biennial review by joint committee on finance. In each odd-numbered year, when the board submits its report under s. 555.05, the board shall submit to the joint committee on finance a copy of that report and a plan for the grants, loans, and investments the board intends to make under s. 555.02 (2) during the biennium that begins on July 1 of that year. The joint committee on finance may approve, disapprove, or modify and approve the board's plan. If, within 14 working days after the date of that submittal, the cochairpersons of the committee do not notify the board that the committee has scheduled a meeting to review the board's plan, the board may make grants, loans, and investments under s. 555.02 (2) consistent with the board's plan. If, within 14 working days after the date of that submittal, the cochairpersons of the committee notify the board that the committee has scheduled a meeting to review the board's plan, the board may make grants, loans, and investments under s. 555.02 (2) beginning on July 1 of that year only upon approval of the committee and subject to any modification of the committee to the board's plan.

AB888,17,4 555.06 Expenditure of fund moneys for operational or administrative costs. If the board determines that the amount provided under s. 20.195 (1) (q) 1., 2., 3., or 4. is not sufficient to cover the board's actual general program operations and administrative expenses for a fiscal year, the board may notify the joint committee on finance in writing that the board proposes to exceed that amount for those purposes. That notice shall state the specific amount of additional moneys from the fund that the board proposes to use for general program operations and administrative expenses and the board's reasons supporting its determination that its expenditure of that additional amount is necessary for those purposes. If, within 14 working days after the date of that notice, the cochairpersons of the committee do not notify the board that the committee has scheduled a meeting to review the board's proposal, the board may expend the additional amount as proposed in the board's notice. If, within 14 working days after the date of that notice, the cochairpersons of the committee notify the board that the committee has scheduled a meeting to review the board's proposal, the board may expend the additional amount only upon approval of the committee.

AB888,17 Section 17 . Nonstatutory provisions.

AB888,17,7 (1) Definition. In subsections (2) and (3), "board" means the Wisconsin next generation reserve board.

AB888,17,8 (2) Initial appointments.

AB888,17,17 (a) Notwithstanding the requirement of advice and consent of the senate under section 15.07 (1) (a) of the statutes, the initial members of the board nominated by the governor may be provisionally appointed by the governor, subject to later senate confirmation. Any provisional appointment shall be in full force until withdrawn by the governor or acted upon by the senate, and if confirmed by the senate shall continue for the remainder of the unexpired term of the member and until a successor is appointed and qualifies. A provisional appointee may exercise all the powers and duties of board membership to which the person is appointed during the time in which the appointee qualifies.

AB888,17,22 (b) A provisional appointment made under paragraph (a) that is withdrawn by the governor shall, upon withdrawal, lapse and create a vacancy for provisional appointment of another initial member of the board. Any provisional appointment made under paragraph (a) that is rejected by the senate shall, upon rejection, lapse and create a vacancy for provisional appointment of another initial board member.

AB888,17,25 (c) Notwithstanding the lengths of terms specified in section 15.77 (2) of the statutes, as created by this act, the initial members of the board shall be appointed for the following terms:

AB888,18,4 1. The member appointed by the governor under section 15.77 (1) (a) of the statutes, as created by this act, and one member appointed by the governor under section 15.77 (1) (b) of the statutes, as created by this act, for terms expiring on July 1, 2018.

AB888,18,8 2. One member appointed by the governor under section 15.77 (1) (b) of the statutes, as created by this act, and the member appointed by the governor under section 15.77 (1) (c) of the statutes, as created by this act, for terms expiring on July 1, 2019.

AB888,18,10 3. The members appointed by the governor under section 15.77 (1) (d) and (e) of the statutes, as created by this act, for terms expiring on July 1, 2020.