560.21(1)(b)
(b) "Equity investment" means the purchase of common or preferred capital stock or the purchase of an option or other right to acquire common or preferred capital stock.
560.21(2)
(2) The department shall deposit in the general fund all interest and principal received in repayment of loans under s.
560.20 (3), 1999 stats., any proceeds from equity investments made by the community development finance company under s.
234.965, 1991 stats., that are received by the department or the community development finance company, and any unencumbered grant funds returned to the department under
1993 Wisconsin Act 437, section 9115 (1t).
560.21(3)
(3) The community development finance company shall transfer to the department any proceeds that the company receives from equity investments made by the community development finance company under s.
234.965, 1991 stats.
560.21 History
History: 2001 a. 109 ss.
481,
482,
498,
503,
504.
560.25
560.25
Manufacturing extension center grants. 560.25(1)(a)
(a) "Biotechnology" means technology related to life sciences.
560.25(1)(b)
(b) "Business" means a company located in this state, a company that has made a firm commitment to locate a facility in this state or a group of companies at least 80% of which are located in this state.
560.25(1)(d)
(d) "Technology-based nonprofit organization" means a nonprofit corporation, as defined in
s. 181.0103 (17), or an organization described in section
501 (c) (3) of the Internal Revenue Code that is exempt from federal income tax under section
501 (a) of the Internal Revenue Code, and that has as a mission the transfer of technology to businesses in this state.
560.25(2)
(2) Grants. Subject to
sub. (4), the department may make a grant from the appropriation under
s. 20.143 (1) (ko) to a technology-based nonprofit organization to provide support for a manufacturing extension center if all of the following apply:
Effective date note
NOTE: Sub. (2) (intro.) is shown as amended eff. 6-30-03 by
2001 Wis. Act 16. Prior to 6-30-03 it reads:
Effective date text
(2) Grants. Subject to sub. (4), the department may make a grant from the appropriation under s. 20.143 (1) (ko) and a grant of up to $500,000 in each fiscal year from the appropriation under s. 20.143 (1) (ie) to a technology-based nonprofit organization to provide support for a manufacturing extension center if all of the following apply:
560.25(2)(a)
(a) The technology-based nonprofit organization submits to the department a plan detailing its proposed expenditures and performance measures related to the project.
560.25(3)
(3) Restriction on grant recipients. A technology-based nonprofit organization that receives a grant under this section is thereafter ineligible to receive a grant or loan under
subch. V.
560.25(4)
(4) Limit on grants. The department may not award more than $1,000,000 in grants under this section in a fiscal year.
560.25 History
History: 1999 a. 9;
2001 a. 16.
560.26
560.26
Wisconsin Procurement Institute grants. 560.26(1)(1) Subject to
sub. (3), the department shall make grants from the appropriation under
s. 20.143 (1) (c) to the Wisconsin Procurement Institute if all of the following apply:
560.26(1)(a)
(a) The Wisconsin Procurement Institute uses the grant proceeds to further its efforts to secure federal government contracts and create jobs in the state.
560.26(1)(b)
(b) The Wisconsin Procurement Institute submits a plan to the department for each grant detailing the proposed use of the grant and the secretary approves the plan.
560.26(1)(c)
(c) The Wisconsin Procurement Institute enters into a written agreement with the department that specifies the conditions for use of the grant proceeds, including reporting and auditing requirements.
560.26(1)(d)
(d) The Wisconsin Procurement Institute agrees in writing to submit to the department the report required under
sub. (2) by the time required under
sub. (2).
560.26(2)
(2) If the Wisconsin Procurement Institute receives a grant under this section, it shall submit to the department, within 6 months after spending the full amount of the grant, a report detailing how the grant proceeds were used.
560.26(3)
(3) The department may not make grants under
sub. (1) that exceed $100,000 in total.
560.26 History
History: 1999 a. 9.
560.27
560.27
High-technology business development corporation. 560.27(1)(a)(a) The department shall organize and assist in maintaining a high-technology business development corporation as a nonstock, nonprofit corporation under
ch. 181 for the exclusive purpose of promoting and supporting the creation, development and retention of science-based and technology-based businesses in the state. In furtherance of its purpose, the corporation shall establish and implement programs focused on key elements necessary for the success of high-technology firms, including entrepreneurs, businesses, professional services, seed and venture capital, universities and state government.
560.27(1)(b)
(b) From the appropriation under
s. 20.143 (1) (d), the department shall make a one-time grant of $50,000 in fiscal year 2000-01 to the high-technology business development corporation for start-up capital and reasonable administrative expenses of the corporation.
560.27(2)(a)(a) The high-technology business development corporation shall be governed by a board of directors, consisting of the secretary, or his or her designee, the president of the University of Wisconsin System, or his or her designee, the director of the technical college system board, or his or her designee, the president of the Wisconsin Association of Independent Colleges and Universities, or his or her designee, and at least 11 other members, one or more of whom represents each of the following categories:
560.27(2)(a)7.
7. Professionals in the state who are experienced in providing services to persons specified in
subds. 1. to
6.
560.27(2)(b)
(b) The members who are representatives of the categories under
par. (a) 1. to
7. shall serve 5-year terms. Of the initial members who are representatives of the categories under
par. (a) 1. to
7., one shall be appointed by the senate majority leader, one shall be appointed by the speaker of the assembly, one shall be appointed by the senate minority leader, one shall be appointed by the assembly minority leader and at least 7 shall be appointed by the governor. The high-technology business development corporation, in its bylaws, shall specify the method for electing new members who are representatives of the categories under
par. (a) 1. to
7. and for filling vacancies.
560.27(3)(a)(a) Subject to
par. (c), the department may make a grant to the high-technology business development corporation, from the appropriation under
s. 20.143 (1) (d), if all of the following apply:
560.27(3)(a)1.
1. The corporation submits an expenditure plan to the department detailing the proposed use of the grant proceeds and the secretary approves the plan.
560.27(3)(a)2.
2. The corporation enters into a written agreement with the department that specifies the conditions for the use of the grant proceeds, including reporting and auditing requirements.
560.27(3)(a)3.
3. The corporation provides matching funds equal to 50% of the grant proceeds.
560.27(3)(a)4.
4. The corporation provides to the department information requested by the department about private funding the corporation has received or will receive for the purposes detailed in the expenditure plan under
subd. 1.
560.27(3)(a)5.
5. The corporation agrees in writing to submit to the department the report required by
par. (b) by the time required under
par. (b).
560.27(3)(b)
(b) If the corporation receives a grant under this subsection, the corporation shall submit to the department, within 6 months after spending the full amount of the grant, a report detailing how the grant proceeds were used.
560.27(3)(c)
(c) The department may not make grants under this subsection that exceed $200,000 in total in fiscal year 2000-01, or that exceed $250,000 in total in any fiscal year thereafter.
560.27(4)
(4) Annually, the high-technology business development corporation shall provide a report on its activities to the appropriate standing committees of each house of the legislature in the manner provided under
s. 13.172 (3) and to the governor.
560.27(5)
(5) The assets transferred to, and the assets and liabilities of, the high-technology business development corporation shall be separate from all other assets and liabilities of the state, of all political subdivisions of the state and of the department. Neither the state, any political subdivision of the state nor the department guarantees any obligation of or has any obligation to the high-technology business development corporation. Neither the state, any political subdivision of the state nor the department is liable for any debt or liability of the high-technology business development corporation.
560.27 History
History: 1999 a. 106.
CERTIFIED CAPITAL COMPANIES
Subch. II of ch. 560 Cross-reference
Cross Reference: See also s.
Comm 111.01, Wis. adm. code.
560.30
560.30
Definitions. In this subchapter:
560.30(1)
(1) "Affiliate" means, with respect to a certified capital company or a certified investor, any of the following:
560.30(1)(a)
(a) A person who, directly or indirectly, owns, controls, or holds power to vote, 10% or more of the outstanding voting securities or other voting ownership interests of the certified capital company or certified investor.
560.30(1)(b)
(b) A person, 10% of whose outstanding voting securities or other voting ownership interests are directly or indirectly owned, controlled or held with power to vote by the certified capital company or certified investor.
560.30(1)(c)
(c) A person directly or indirectly controlling, controlled by, or under common control with, the certified capital company or certified investor.
560.30(1)(d)
(d) A partnership in which the certified capital company or certified investor is a general partner.
560.30(1)(e)
(e) A person who is an officer, director or agent of the certified capital company or certified investor, or is an immediate family member of such an officer, director or agent.
560.30(2)
(2) "Certified capital company" means a person that has been certified by the department under
s. 560.31 and that has not been decertified under
s. 560.37 (3) or
(3m).
560.30(3)
(3) "Certified capital company tax credit" means the tax credit under
s. 76.635.
560.30(4)
(4) "Certified capital investment" means an investment in a certified capital company that is certified under
s. 560.32 (2) and that fully funds either the investor's equity interest in a certified capital company, a qualified debt instrument that a certified capital company issues, or both.
560.30(5)
(5) "Certified investor" means a person who makes a certified capital investment.
560.30(6)
(6) "Investment date" means, with respect to each investment pool, the date on which the last certified capital that is part of that investment pool was invested in the certified capital company.
560.30(7)
(7) "Investment pool" means the aggregate of all investments of certified capital in a certified capital company that are made as part of the same transaction, except that investments received more than 30 days apart may not be considered part of the same investment pool.
560.30(8)
(8) "Qualified business" means a business which is a qualified business under
s. 560.33.
560.30(9)
(9) "Qualified debt instrument" means a debt instrument that a certified capital company issues at par value or at a premium; that has an original maturity date of at least 5 years from the date on which it was issued; that has a repayment schedule that is no faster than a level principal amortization and, until the certified capital company may make distributions other than qualified distributions, the interest, distribution or payment features of which are not related to the certified capital company's profitability or the performance of its investment portfolio.
560.30(10)
(10) "Qualified distribution" means a distribution or payment by a certified capital company to its equity holders for any of the following:
560.30(10)(a)
(a) The costs of forming, syndicating, managing or operating the certified capital company.
560.30(10)(b)
(b) An annual management fee that does not exceed 2.5% of the certified capital company's total certified capital.
560.30(10)(c)
(c) Reasonable and necessary fees paid for professional services related to the operation of the certified capital company.
560.30(10)(d)
(d) A projected increase in federal or state taxes, including penalties and interest on those taxes, of the equity owners of the certified capital company if those amounts are related to the certified capital company's ownership, management or operation.
560.30(11)
(11) "Qualified investment" means an investment in a qualified business by a certified capital company that meets the requirements under
s. 560.34 (1).
560.30 History
History: 1997 a. 215.
560.31
560.31
Certification of certified capital companies. 560.31(1)(1)
Application. The department shall promulgate rules establishing procedures under which a person may apply to become a certified capital company. The department shall grant or deny an application for certification under this section within 30 days of the date of application. If the department denies certification, the department shall include with the denial a detailed description of the grounds for the refusal, including suggestions for removal of those grounds.
560.31(2)
(2) Requirements for certification. The department shall certify a person as a certified capital company if the department determines that all of the following conditions have been met:
560.31(2)(a)
(a) The person is a partnership, corporation, trust or limited liability company, whether organized for profit or not for profit, that has as its primary business activity the investment of cash in qualified businesses.
560.31(2)(b)
(b) The person has a net worth, at the time of application, of at least $500,000 and has at least $500,000 in cash, cash equivalents and marketable securities.
560.31(2)(c)
(c) The directors, officers, general partners, trustees, managers or members or persons having a similar function are familiar with the requirements of this subchapter.
560.31(2)(d)
(d) At least 2 officers, directors, general partners, trustees, managers or members each have at least 2 years of experience in the venture capital industry.
560.31(2)(e)
(e) The person has included, in any offering material involving the sale of securities, the statement required under
s. 560.32 (1).
560.31(2)(f)
(f) The person has paid a nonrefundable application fee of $7,500.
