SB70-AA1,182,11 (b) “Investment manager” means the person with whom the oversight board enters into a contract under sub. (4).

SB70-AA1,182,12 (c) “Oversight board” means the oversight board created under sub. (2) (c).

SB70-AA1,182,16 (2) Establishment of program. The corporation shall establish and administer a venture capital fund of funds program to invest moneys in venture capital funds that invest in businesses located in this state, subject to the requirements of this section. In establishing the program, the corporation shall do all of the following:

SB70-AA1,182,17 (a) Create a fund of funds.

SB70-AA1,182,19 (b) Provide that the assets of the fund of funds will continuously be reinvested in venture capital funds under the fund of funds program.

SB70-AA1,182,21 (c) Create an oversight board to conduct any activity as required by this section or as directed by the corporation.

SB70-AA1,183,2 (3) Investments in venture capital funds. (a) The investment manager shall request from the corporation moneys to make investments through the fund of funds program and to pay the investment manager's management fee, and the corporation shall, subject to the approval of the secretary of administration, pay the moneys to the investment manager from the appropriation under s. 20.192 (1) (c).

SB70-AA1,183,4 (b) The oversight board shall establish investment policies for the fund of funds program, subject to all of the following conditions:

SB70-AA1,183,8 1. All moneys paid to the investment manager under par. (a) to make investments shall be committed for investment to venture capital funds, subject to the requirements of this section, no later than 60 months after the creation of the fund of funds under sub. (2) (a).

SB70-AA1,183,11 2. No more than $18,750,000 of the total moneys paid to the investment manager under par. (a) to make investments may be invested in any single venture capital fund.

SB70-AA1,183,13 3. At least 20 percent of the investments made through the program shall be directed to any combination of the following:

SB70-AA1,183,15 a. Businesses located in parts of this state that typically do not receive significant investment from venture capital funds.

SB70-AA1,183,18 b. Businesses that are at least 51 percent owned by one or more members of a racial minority group and whose management and daily business operations are controlled by one or more members of a racial minority group.

SB70-AA1,183,21 c. Businesses that are at least 51 percent owned by one or more women and whose management and daily business operations are controlled by one or more women.

SB70-AA1,183,22 (c) No investment may be made through the program in a lobbying or law firm.

SB70-AA1,184,2 (4) Investment manager. The oversight board shall contract with an investment manager who meets the qualifications established by the corporation. The contract shall establish the investment manager's compensation, including any management fee. A management fee may not annually exceed 1 percent of the total assets under management in the fund of funds program.

SB70-AA1,184,6 (5) Venture capital fund requirements. The investment manager shall contract with each venture capital fund that receives moneys through the fund of funds program. Each contract shall require the venture capital fund to do all of the following:

SB70-AA1,184,9 (a) Make new investments in an amount equal to the amount of moneys it receives through the program in one or more businesses who are headquartered in this state and whose operations are primarily in this state.

SB70-AA1,184,16 (b) At least match any moneys it receives through the program and invests in a business described in par. (a) with an investment in that business of moneys the venture capital fund has raised from sources other than the program. The investment manager shall ensure that, on average, for every $1 a venture capital fund receives through the program and invests in a business described in par. (a), the venture capital fund invests $2 in that business from sources other than the program.

SB70-AA1,184,18 (c) Provide to the investment manager the information necessary for the investment manager to complete the reports under sub. (6) (a) and (c).

SB70-AA1,184,22 (6) Reports of the investment manager; public disclosures. (a) Annually, no later than 120 days after the end of the investment manager's fiscal year, the investment manager shall submit to the corporation a report for that fiscal year that includes all of the following:

SB70-AA1,184,24 1. An audit of the investment manager's financial statements performed by an independent certified public accountant.

SB70-AA1,185,2 2. The investment manager's internal rate of return from investments made through the fund of funds program.

SB70-AA1,185,4 3. For each venture capital fund that contracts with the investment manager under sub. (5), all of the following:

SB70-AA1,185,5 a. The name and address of the venture capital fund.

SB70-AA1,185,7 b. The amounts invested in the venture capital fund through the fund of funds program.

SB70-AA1,185,9 c. An accounting of any fee the venture capital fund paid to itself or any principal or manager of the venture capital fund.

SB70-AA1,185,11 d. The venture capital fund's average internal rate of return on its investments of the moneys it received through the fund of funds program.

SB70-AA1,185,13 4. For each business in which a venture capital fund held an investment of moneys received through the fund of funds program, all of the following: