AB888,9 16Section 9. 20.536 (1) (k) of the statutes is amended to read:
AB888,8,2017 20.536 (1) (k) General program operations. All moneys received from
18assessments made under s. 25.187 (2) and, from charges made under s. 25.17 (9), and
19from assessments or charges made under s. 25.17 (73) or (74),
for the purpose of
20conducting general program operations.
AB888,10 21Section 10. 25.14 (1) (a) (intro.) of the statutes is amended to read:
AB888,9,222 25.14 (1) (a) (intro.) There is created a state investment fund under the
23jurisdiction and management of the board to be operated as an investment trust for
24the purpose of managing the securities of all funds that are required by law to be

1invested in the state investment fund, the Wisconsin next generation reserve fund,
2and all of the state's funds specified in s. 25.17 (1), except all of the following:
AB888,11 3Section 11. 25.17 (73) of the statutes is created to read:
AB888,9,174 25.17 (73) Have authority to provide advice and services requested by a state
5agency, as defined in s. 20.001 (1), or authority, as defined in s. 16.417 (1) (b), or
6business entity owned or controlled by a state agency or authority, relating to
7managing or administering money and property controlled by the agency, authority,
8or business entity for any purpose, including economic development in this state.
9The scope of any advice or services provided to a state agency, authority, or business
10entity under this subsection shall be defined by agreement between the board and
11the agency, authority, or business entity. This agreement shall require the cost of any
12advice or services provided by the board to be paid by the agency, authority, or
13business entity and the agreement may authorize the board to make assessments
14against the money and property controlled by the agency, authority, or business
15entity or to charge the agency, authority, or business entity for the cost of any advice
16or services provided. All moneys received by the board under this subsection shall
17be credited to the appropriation account under s. 20.536 (1) (k).
AB888,12 18Section 12. 25.17 (74) of the statutes is created to read:
AB888,9,2519 25.17 (74) Have authority to provide facilities to any state agency, as defined
20in s. 20.001 (1), or authority, as defined in s. 16.417 (1) (b), or business entity owned
21or controlled by a state agency or authority, in accordance with any agreement
22between the board and the agency, authority, or business entity. This agreement
23shall require the cost of facilities provided by the board to be paid by the agency,
24authority, or business entity. All moneys received by the board under this subsection
25shall be credited to the appropriation account under s. 20.536 (1) (k).
AB888,13
1Section 13. 25.90 of the statutes is created to read:
AB888,10,7 225.90 Wisconsin next generation reserve fund. There is established a
3separate nonlapsible trust fund designated as the Wisconsin next generation reserve
4fund. The fund shall consist of all moneys deposited in the fund under ss. 73.17,
5555.02 (2) (c) and 555.03 (3), together with all donations, gifts, or bequests made to
6the fund, all moneys transferred to the fund from other funds, and all income or
7interest earned by the fund.
AB888,14 8Section 14. 73.17 of the statutes is created to read:
AB888,10,15 973.17 Wisconsin next generation reserve fund. (1) In this section,
10"qualifying company" means a person whose principal business activity code in the
11North American Industry Classification System, 2012 edition, published by the
12federal office of management and budget, is one of the following: 311221, 311224,
13325193, 325199, 325220, 325311, 325312, 325314, 325320, 325411, 325412, 325413,
14325414, 334510, 334516, 334517, 339112, 339113, 339114, 339115, 339116, 541380,
15541711, 541712, 621491, 621493, 621511, 621512, or 622110.
AB888,10,18 16(2) (a) In July 2016, the department of revenue shall determine the total
17amount of withholding taxes due and payable under subch. X of ch. 71 from
18qualifying companies for calendar year 2015.
AB888,10,2319 (b) Subject to par. (d), on July 1, 2017, and on each July 1 thereafter, ending on
20July 1, 2031, the department of revenue shall deposit into the Wisconsin next
21generation reserve fund an amount equal to 95 percent of the amount of withholding
22taxes due and payable under subch. X of ch. 71 from qualifying companies in the
23previous calendar year that exceeds the amount determined under par. (a).
AB888,11,3
1(c) A person who is subject to withholding taxes under subch. X of ch. 71 shall
2indicate to the department of revenue whether it is a qualifying company for
3purposes of this section in the manner determined by the department.
AB888,11,64 (d) The department of revenue shall not deposit into the Wisconsin next
5generation reserve fund more than $15,000,000 on July 1, 2017, or $50,000,000 on
6any July 1 thereafter, and the total amount deposited may not exceed $350,000,000.
AB888,11,197 (e) After the department of revenue deposits a total of $350,000,000 into the
8fund under par. (d), and subject to the requirements of this paragraph, the
9department shall continue depositing moneys into the fund under par. (b), not to
10exceed an additional total amount of $150,000,000 in deposits. Before the
11department continues those deposits, the department shall notify the joint
12committee on finance in writing that the department intends to do so. If, within 14
13working days after the date of that notice, the cochairpersons of the committee do not
14notify the department that the committee has scheduled a meeting to review the
15continuation of deposits into the fund, the department shall continue those deposits.
16If, within 14 working days after the date of that notice, the cochairpersons of the
17committee notify the department that the committee has scheduled a meeting to
18review the department's continuation of deposits into the fund, the department may
19continue those deposits only upon approval of the committee.
AB888,15 20Section 15. 230.08 (2) (yo) of the statutes is created to read:
AB888,11,2221 230.08 (2) (yo) The executive director and administrative assistant of the
22Wisconsin next generation reserve board.
AB888,16 23Section 16. Chapter 555 of the statutes is created to read:
AB888,11,2424 CHAPTER 555
AB888,12,2
1Wisconsin next generation
2 RESERVE board
AB888,12,3 3555.01Definitions. In this chapter:
AB888,12,4 4(1) "Board" means the Wisconsin next generation reserve board.
AB888,12,6 5(2) "Certified bioscience company" means a person certified by the board under
6s. 555.03 (2).
AB888,12,9 7(3) "Qualifying company" has the meaning given in s. 73.17 (1), except that
8"qualifying company" does not include a business that has as its principal business
9activity the operation of a hospital as defined in s. 50.33 (2).
AB888,12,11 10(4) "Fund" means the Wisconsin next generation reserve fund established
11under s. 25.90.
AB888,12,15 12555.02 Wisconsin next generation reserve fund. (1) Executive director.
13The board shall employ an executive director who has expertise in private equity
14investment. In reviewing candidates for executive director, the board shall consider
15all of the following:
AB888,12,1716 (a) The extent of the candidate's experience and expertise in private equity
17investment.
AB888,12,1918 (b) The candidate's investment experience related to start-up bioscience
19companies.
AB888,12,2120 (c) The candidate's experience related to seed or early stage business
21investments.
AB888,12,2222 (d) Any other criteria the board considers relevant.
AB888,13,2 23(2) Grants, loans, and investments. (a) Subject to s. 555.055, from the
24appropriation under s. 20.195 (1) (q), the board may make a grant or loan to a

1certified bioscience company, or the board may make an investment directly in a
2certified bioscience company.
AB888,13,63 (b) Before the board makes a grant, loan, or investment under par. (a), the
4board shall contract with the certified bioscience company. In addition to any other
5terms required or negotiated by the board, that contract shall include all of the
6following conditions:
AB888,13,97 1. The certified bioscience company shall use a grant, loan, or investment
8provided by the board for research and development related to biotechnology or
9bioscience or bioscience research methods, as determined by the board by rule.
AB888,13,1110 2. The certified bioscience company shall match the amount of the board's,
11grant, loan, or investment with moneys the company has raised from other sources.
AB888,13,1412 3. Unless approved by the board, the certified bioscience company may not
13relocate its headquarters outside of this state during the term of the contract under
14this paragraph.
AB888,13,1615 (c) Any moneys paid to the board by a certified bioscience company shall be
16deposited in the fund.
AB888,13,1917 (d) The total value of all grants the board provides under this subsection in a
18fiscal year may not equal more than 10 percent of the total value of all grants, loans,
19and investments the board makes in that fiscal year.
AB888,13,22 20555.03 Certified bioscience companies. (1) Application. Any person may
21apply to the board on a form prescribed by the board for certification under this
22section. The application shall include all of the following:
AB888,13,2323 (a) The name, address, and tax identification number of the person.
AB888,13,2524 (b) A description of the principal business activities of the person and the
25locations at which those activities are conducted.
AB888,14,3
1(c) The person's principal business activity code under the North American
2Industry Classification System, 2012 edition, published by the federal office of
3management and budget.
AB888,14,44 (d) Any other information the board requires.
AB888,14,8 5(2) Certification. The board may certify a person that submits an application
6under sub. (1) to be eligible to receive a grant, loan, or investment under s. 555.02
7if the board determines after conducting an investigation that the person meets all
8of the following conditions:
AB888,14,99 (a) The person is a qualifying company.
AB888,14,1110 (b) The person is headquartered in, and has its principal business operations
11located in, this state.
AB888,14,1312 (c) The person, including any affiliate, employs at least 75 percent of its
13employees in this state.
AB888,14,1414 (d) The person is in need of capital.
AB888,14,1815 (e) The person is developing biotechnology or bioscience or bioscience research
16methods, as determined by the board by rule and the person demonstrates to the
17board's satisfaction that the person has the potential to generate high levels of
18successful investment performance and to increase employment in this state.
AB888,14,1919 (h) The person meets any other conditions established by the board.
AB888,14,21 20(3) Application fee. The board may charge a fee to an applicant for certification
21under this section. The fee shall be deposited in the fund.
AB888,15,2 22555.04 Contracting authority. Notwithstanding ss. 16.70 to 16.78, the
23board may enter into any contract with the investment board as provided in s. 25.17
24(73) and (74), including any contract relating to the furnishing of personnel or office
25space, to be paid as provided in s. 25.17 (73) and (74), may procure insurance, and

1may execute any other contract necessary or convenient to the performance of the
2board's powers and duties under this chapter.
AB888,15,5 3555.05 Annual report. Annually, by July 1, the board shall submit to the chief
4clerk of each house of the legislature, for distribution to the legislature under s.
513.172 (2), a report that includes all of the following:
AB888,15,6 6(1) An accounting of the revenue received in the fund under s. 73.17 (2).
AB888,15,8 7(2) An accounting of all expenditures from the fund by the board for any
8purpose.
AB888,15,10 9(3) For each each certified bioscience company that received a grant, loan, or
10investment from the board, all of the following:
AB888,15,1111 (a) The name and address of the certified bioscience company.
AB888,15,1312 (b) A description of the nature of the business conducted by the certified
13bioscience company.
AB888,15,1414 (c) The amount of the grant, loan, or investment.
AB888,15,1615 (d) A description of the purposes for which the certified bioscience company
16used or is using the grant, loan, or investment.
AB888,15,1917 (e) A statement of the number of employees the certified bioscience company
18employed on January 1 of the preceding year and the number of employees the
19company employed on December 31 of that year.
AB888,15,21 20(4) An accounting of the internal rate of return realized by the board on its total
21loans to and investments in certified bioscience companies.
AB888,15,23 22(5) An accounting of the internal rate of return realized by the board on each
23loan to or investment in each certified bioscience company.
AB888,16,13 24555.055 Biennial review by joint committee on finance. In each
25odd-numbered year, when the board submits its report under s. 555.05, the board

1shall submit to the joint committee on finance a copy of that report and a plan for the
2grants, loans, and investments the board intends to make under s. 555.02 (2) during
3the biennium that begins on July 1 of that year. The joint committee on finance may
4approve, disapprove, or modify and approve the board's plan. If, within 14 working
5days after the date of that submittal, the cochairpersons of the committee do not
6notify the board that the committee has scheduled a meeting to review the board's
7plan, the board may make grants, loans, and investments under s. 555.02 (2)
8consistent with the board's plan. If, within 14 working days after the date of that
9submittal, the cochairpersons of the committee notify the board that the committee
10has scheduled a meeting to review the board's plan, the board may make grants,
11loans, and investments under s. 555.02 (2) beginning on July 1 of that year only upon
12approval of the committee and subject to any modification of the committee to the
13board's plan.
AB888,17,4 14555.06 Expenditure of fund moneys for operational or administrative
15costs.
If the board determines that the amount provided under s. 20.195 (1) (q) 1.,
162., 3., or 4. is not sufficient to cover the board's actual general program operations and
17administrative expenses for a fiscal year, the board may notify the joint committee
18on finance in writing that the board proposes to exceed that amount for those
19purposes. That notice shall state the specific amount of additional moneys from the
20fund that the board proposes to use for general program operations and
21administrative expenses and the board's reasons supporting its determination that
22its expenditure of that additional amount is necessary for those purposes. If, within
2314 working days after the date of that notice, the cochairpersons of the committee do
24not notify the board that the committee has scheduled a meeting to review the board's
25proposal, the board may expend the additional amount as proposed in the board's

1notice. If, within 14 working days after the date of that notice, the cochairpersons
2of the committee notify the board that the committee has scheduled a meeting to
3review the board's proposal, the board may expend the additional amount only upon
4approval of the committee.
AB888,17 5Section 17 . Nonstatutory provisions.
AB888,17,76 (1) Definition. In subsections (2) and (3), "board" means the Wisconsin next
7generation reserve board.
AB888,17,88 (2) Initial appointments.
AB888,17,179 (a) Notwithstanding the requirement of advice and consent of the senate under
10section 15.07 (1) (a) of the statutes, the initial members of the board nominated by
11the governor may be provisionally appointed by the governor, subject to later senate
12confirmation. Any provisional appointment shall be in full force until withdrawn by
13the governor or acted upon by the senate, and if confirmed by the senate shall
14continue for the remainder of the unexpired term of the member and until a successor
15is appointed and qualifies. A provisional appointee may exercise all the powers and
16duties of board membership to which the person is appointed during the time in
17which the appointee qualifies.
AB888,17,2218 (b) A provisional appointment made under paragraph (a) that is withdrawn by
19the governor shall, upon withdrawal, lapse and create a vacancy for provisional
20appointment of another initial member of the board. Any provisional appointment
21made under paragraph (a) that is rejected by the senate shall, upon rejection, lapse
22and create a vacancy for provisional appointment of another initial board member.
AB888,17,2523 (c) Notwithstanding the lengths of terms specified in section 15.77 (2) of the
24statutes, as created by this act, the initial members of the board shall be appointed
25for the following terms:
AB888,18,4
11. The member appointed by the governor under section 15.77 (1) (a) of the
2statutes, as created by this act, and one member appointed by the governor under
3section 15.77 (1) (b) of the statutes, as created by this act, for terms expiring on July
41, 2018.
AB888,18,8 52. One member appointed by the governor under section 15.77 (1) (b) of the
6statutes, as created by this act, and the member appointed by the governor under
7section 15.77 (1) (c) of the statutes, as created by this act, for terms expiring on July
81, 2019.
AB888,18,10 93. The members appointed by the governor under section 15.77 (1) (d) and (e)
10of the statutes, as created by this act, for terms expiring on July 1, 2020.
AB888,18,14 114. The members appointed by the governor under section 15.77 (1) (f) and (g)
12of the statutes, as created by this act, and the member appointed by BioForward, Inc.,
13under section 15.77 (1) (h) of the statutes, as created by this act, for terms expiring
14on July 1, 2021.
AB888,18,1815 (3) Position authorization. There is authorized for the board 1.0 FTE SEG
16executive director position and 1.0 FTE SEG administrative assistant position to be
17funded from the appropriation under section 20.195 (1) (q) of the statutes, as created
18by this act, or from any loan under subsection (4 ), or both.
AB888,18,2319 (4) Investment board loan. The investment board may loan money to the
20Wisconsin next generation reserve board for general program operations and
21administrative expenses of the Wisconsin next generation reserve board. All loan
22terms shall be specified by written agreement between the investment board and the
23Wisconsin next generation reserve board.
AB888,18 24Section 18. Effective dates. This act takes effect on the day after publication,
25except as follows:
AB888,19,2
1(1) The repeal and recreation of section 15.07 (4) of the statutes takes effect on
2June 30, 2016.
AB888,19,33 (End)
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