AB640-ASA1,4,2
119.42 (10) (t) The members of the innovation fund council established under
2s. 238.41.
AB640-ASA1,2 3Section 2 . 19.42 (13) (q) of the statutes is created to read:
AB640-ASA1,4,54 19.42 (13) (q) The members of the innovation fund council established under
5s. 238.41.
AB640-ASA1,3 6Section 3 . 20.192 (1) (t) of the statutes is created to read:
AB640-ASA1,4,137 20.192 (1) (t) Innovation fund and programs; general program operations;
8financial assistance.
From interest and income of the innovation fund, a sum
9sufficient to provide financial assistance under ss. 238.42, 238.43, 238.44, and 238.45
10and for general program operations and administrative expenses related to the
11innovation fund council and the programs administered under subch. III of ch. 238.
12Not more than the following amounts may be expended under this paragraph for
13general program operations and administrative expenses under subch. III of ch. 238:
AB640-ASA1,4,1414 1. In fiscal year 2019-20, 5 percent of the moneys in the innovation fund.
AB640-ASA1,4,1515 2. In fiscal year 2020-21, 5 percent of the moneys in the innovation fund.
AB640-ASA1,4,1616 3. In fiscal year 2021-22, 2 percent of the moneys in the innovation fund.
AB640-ASA1,4,1817 4. In fiscal year 2022-23 and in each fiscal year thereafter, 0.5 percent of the
18moneys in the innovation fund.
AB640-ASA1,4 19Section 4 . 20.192 (1) (y) of the statutes is created to read:
AB640-ASA1,4,2320 20.192 (1) (y) Innovation fund and programs; additional operational or
21administrative expenses.
From interest and income of the innovation fund, a sum
22sufficient equal to any amount authorized under s. 238.48 (2) for general program
23operations and administrative expenses.
AB640-ASA1,5 24Section 5 . 20.536 (1) (k) of the statutes is amended to read:
AB640-ASA1,5,4
120.536 (1) (k) General program operations. All moneys received from
2assessments made under s. 25.187 (2) and from charges made under s. 25.17 (9), and
3from assessments or charges made under s. 25.17 (73),
for the purpose of conducting
4general program operations.
AB640-ASA1,6 5Section 6 . 25.14 (1) (a) 20. of the statutes is created to read:
AB640-ASA1,5,66 25.14 (1) (a) 20. The innovation fund established under s. 25.90.
AB640-ASA1,7 7Section 7 . 25.17 (1) (hq) of the statutes is created to read:
AB640-ASA1,5,88 25.17 (1) (hq) Innovation fund (s. 25.90);
AB640-ASA1,8 9Section 8 . 25.17 (73) of the statutes is created to read:
AB640-ASA1,5,2310 25.17 (73) Have authority to consult and provide advice and services to the
11Wisconsin Economic Development Corporation relating to the innovation fund and
12the economic development programs funded by the innovation fund. The scope of any
13consultation, advice, or services under this subsection shall be defined by agreement
14between the board and the Wisconsin Economic Development Corporation and shall
15include the board's consultation with the Wisconsin Economic Development
16Corporation concerning the board's investment of the fund. This agreement shall
17require the cost of any consultation, advice, or services provided by the board to be
18paid by the Wisconsin Economic Development Corporation, and the agreement may
19authorize the board to make assessments against the money and property controlled
20by the Wisconsin Economic Development Corporation or to charge the Wisconsin
21Economic Development Corporation for the cost of any consultation, advice, or
22services provided. All moneys received by the board under this subsection shall be
23credited to the appropriation account under s. 20.536 (1) (k).
AB640-ASA1,9 24Section 9 . 25.90 of the statutes is created to read:
AB640-ASA1,6,5
125.90 Innovation fund. There is established a separate nonlapsible trust
2fund designated as the innovation fund. The fund shall consist of all moneys
3deposited in the fund under s. 73.17, together with all donations, gifts, or bequests
4made to the fund, all moneys transferred to the fund from other funds, and all income
5or interest earned by the fund.
AB640-ASA1,10 6Section 10 . 73.17 of the statutes is created to read:
AB640-ASA1,6,22 773.17 Innovation fund. (1) In this section, “qualifying company" means a
8person whose principal business activity code in the North American Industry
9Classification System, 2017 edition, published by the federal office of management
10and budget, is one of the following: 111, 112, 311, 424, 445, 481, 3121, 3364, 4244,
114245, 4881, 221111, 221112, 221113, 221114, 221115, 221116, 221117, 221121,
12221122, 221210, 221310, 221330, 237990, 238210, 311221, 311224, 324110, 324191,
13325193, 325199, 325220, 325311, 325312, 325314, 325320, 325411, 325412, 325413,
14325414, 325998, 326122, 326199, 327331, 332410, 332420, 332911, 332913, 332999,
15333111, 333249, 333241, 333242, 333318, 333413, 333414, 333415, 333611, 333612,
16333613, 333618, 333991, 333993, 333994, 333995, 333996, 333999, 334111, 334290,
17334412, 334413, 334416, 334418, 334419, 334510, 334511, 334512, 334513, 334514,
18334515, 334516, 334517, 334519, 335110, 335121, 335122, 335129, 335210, 335220,
19335311, 335312, 335313, 335314, 335911, 335912, 335921, 335929, 335931, 335999,
20339112, 339113, 339114, 339115, 339116, 511210, 517410, 541320, 541330, 541370,
21541380, 541511, 541512, 541519, 541620, 541713, 541714, 541715, 611512, 621491,
22621493, 621511, 621512, 622110, or 811219.
AB640-ASA1,6,25 23(2) (a) Before May 1, 2019, the department of revenue shall determine the total
24amount of withholding taxes due and payable under subch. X of ch. 71 from
25qualifying companies for calendar year 2017.
AB640-ASA1,7,5
1(b) Subject to par. (d), on July 1, 2019, and on each July 1 thereafter, ending on
2July 1, 2033, the department of revenue shall deposit into the innovation fund an
3amount equal to 95 percent of the amount of withholding taxes due and payable
4under subch. X of ch. 71 from qualifying companies in the previous calendar year that
5exceeds the amount determined under par. (a).
AB640-ASA1,7,136 (c) A person who is subject to withholding taxes under subch. X of ch. 71 shall
7indicate to the department of revenue whether it is a qualifying company for
8purposes of this section in the manner determined by the department. If the person
9has not identified the person's principal business activity code in the North American
10Industry Classification System, 2017 edition, published by the federal office of
11management and budget, for purposes of registering with the department of
12financial institutions, the person shall provide the code to the department of revenue
13in the manner determined by the department of revenue.
AB640-ASA1,7,1614 (d) The department of revenue may not deposit into the innovation fund more
15than $50,000,000 in any fiscal year, and the total amount deposited may not exceed
16$500,000,000.
AB640-ASA1,11 17Section 11 . 178.0901 (3) (e) of the statutes is created to read:
AB640-ASA1,7,2018 178.0901 (3) (e) The partnership's principal business activity code in the North
19American Industry Classification System, 2017 edition, published by the federal
20office of management and budget.
AB640-ASA1,12 21Section 12 . 178.1003 (6) of the statutes is created to read:
AB640-ASA1,7,2422 178.1003 (6) The partnership's principal business activity code in the North
23American Industry Classification System, 2017 edition, published by the federal
24office of management and budget.
AB640-ASA1,13 25Section 13 . 179.11 (1) (e) of the statutes is created to read:
AB640-ASA1,8,3
1179.11 (1) (e) The limited partnership's principal business activity code in the
2North American Industry Classification System, 2017 edition, published by the
3federal office of management and budget.
AB640-ASA1,14 4Section 14 . 179.82 (9) of the statutes is created to read:
AB640-ASA1,8,75 179.82 (9) The foreign limited partnership's principal business activity code in
6the North American Industry Classification System, 2017 edition, published by the
7federal office of management and budget.
AB640-ASA1,15 8Section 15 . 179.85 of the statutes is amended to read:
AB640-ASA1,8,16 9179.85 Amendments. If any statement in the application for registration of
10a foreign limited partnership was false when made or any arrangements or other
11facts described have changed, making the application inaccurate in any respect, the
12foreign limited partnership shall promptly file with the department, together with
13a filing fee of $15, a certificate, signed and sworn to by a general partner, correcting
14the statement. This section does not apply with respect to changes in the foreign
15limited partnership's principal business activity and the codes specified in s. 179.82
16(9).
AB640-ASA1,16 17Section 16 . 180.0202 (1) (j) of the statutes is created to read:
AB640-ASA1,8,2018 180.0202 (1) (j) The corporation's principal business activity code in the North
19American Industry Classification System, 2017 edition, published by the federal
20office of management and budget.
AB640-ASA1,17 21Section 17 . 180.1503 (1) (k) of the statutes is created to read:
AB640-ASA1,8,2422 180.1503 (1) (k) The foreign corporation's principal business activity code in
23the North American Industry Classification System, 2017 edition, published by the
24federal office of management and budget.
AB640-ASA1,18 25Section 18 . 180.1504 (2) of the statutes is amended to read:
AB640-ASA1,9,4
1180.1504 (2) The requirements of s. 180.1503 (1) (a) to (h) and (k) and (2) for
2obtaining an original certificate of authority apply to obtaining an amended
3certificate under this section except that a foreign corporation is not required to
4deliver a certificate of status with an application solely to change a fictitious name.
AB640-ASA1,19 5Section 19 . 181.0202 (1) (h) of the statutes is created to read:
AB640-ASA1,9,86 181.0202 (1) (h) If applicable, the corporation's principal business activity code
7in the North American Industry Classification System, 2017 edition, published by
8the federal office of management and budget.
AB640-ASA1,20 9Section 20 . 181.1503 (1) (i) of the statutes is created to read:
AB640-ASA1,9,1210 181.1503 (1) (i) If applicable, the foreign corporation's principal business
11activity code in the North American Industry Classification System, 2017 edition,
12published by the federal office of management and budget.
AB640-ASA1,21 13Section 21 . 182.01 (7) of the statutes is created to read:
AB640-ASA1,9,2114 182.01 (7) Transfer of business code information. Upon request by the
15department of revenue, the department of financial institutions shall make available
16to the department of revenue, which availability may be established by providing
17access to an electronic database, the business activity codes under ss. 178.0901 (3)
18(e), 178.1003 (6), 179.11 (1) (e), 179.82 (9), 180.0202 (1) (j), 180.1503 (1) (k), 181.0202
19(1) (h), 181.1503 (1) (i), 183.0202 (7), 183.1004 (8), 185.05 (1) (n), and 193.215 (2) (a)
205. identified by business entities in their filings with the department of financial
21institutions.
AB640-ASA1,22 22Section 22 . 183.0202 (7) of the statutes is created to read:
AB640-ASA1,9,2523 183.0202 (7) The limited liability company's principal business activity code
24in the North American Industry Classification System, 2017 edition, published by
25the federal office of management and budget.
AB640-ASA1,23
1Section 23. 183.1004 (8) of the statutes is created to read:
AB640-ASA1,10,42 183.1004 (8) The foreign limited liability company's principal business activity
3code in the North American Industry Classification System, 2017 edition, published
4by the federal office of management and budget.
AB640-ASA1,24 5Section 24 . 185.05 (1) (n) of the statutes is created to read:
AB640-ASA1,10,86 185.05 (1) (n) If applicable, the cooperative's principal business activity code
7in the North American Industry Classification System, 2017 edition, published by
8the federal office of management and budget.
AB640-ASA1,25 9Section 25 . 193.215 (2) (a) 5. of the statutes is created to read:
AB640-ASA1,10,1210 193.215 (2) (a) 5. If applicable, the cooperative's principal business activity
11code in the North American Industry Classification System, 2017 edition, published
12by the federal office of management and budget.
AB640-ASA1,26 13Section 26 . 238.02 (4) of the statutes is amended to read:
AB640-ASA1,10,1714 238.02 (4) All powers and duties assigned to the corporation under this chapter
15shall be exercised or carried out by the board, unless the board delegates the power
16or duty to an employee of the corporation or a committee established by the board or
17the innovation fund council
.
AB640-ASA1,27 18Section 27 . 238.04 (7) of the statutes is amended to read:
AB640-ASA1,10,2119 238.04 (7) Execute contracts and other instruments required for the operation
20of the corporation, including the agreement with the investment board under s. 25.17
21(73)
.
AB640-ASA1,28 22Section 28 . Subchapter III of chapter 238 [precedes 238.40] of the statutes is
23created to read:
AB640-ASA1,10,2424 Chapter 238
AB640-ASA1,11,2
1Subchapter III
2 innovation
AB640-ASA1,11,3 3238.40 Definitions. In this subchapter:
AB640-ASA1,11,4 4(1) “Council” means the innovation fund council established under s. 238.41.
AB640-ASA1,11,5 5(1m) “Eligible regulatory applicant” means any of the following:
AB640-ASA1,11,66 (a) An entity that has received financial assistance under s. 238.42 or 238.43.
AB640-ASA1,11,87 (b) Any business, institution of higher education, technical college, or public
8utility that is a member of an industry cluster partnership.
AB640-ASA1,11,119 (c) Any business, institution of higher education, technical college, or public
10utility that participates in a business accelerator, business incubator, or technology
11pilot program facilitated by an industry cluster partnership.
AB640-ASA1,11,12 12(2) “Fund” means the innovation fund.
AB640-ASA1,11,20 13(3) “Industry cluster partnership" means a nonprofit organization, including
14its subsidiaries and affiliates, whose primary purpose, or whose subsidiary's or
15affiliate's primary purpose, is to assist in developing and supporting a regional
16concentration of industry-specific private sector businesses in this state and to foster
17industry-specific research and development, worker skills training, and market
18development at institutions of higher education in this state, including technical
19colleges, for the purpose of transferring to the private sector, and commercializing,
20technology developed at those institutions that is related to relevant industries.
AB640-ASA1,12,2 21238.41 Innovation fund council. (1) Establishment. The corporation shall
22establish an advisory council to be called the “innovation fund council.” Except as
23otherwise provided under this section or in policies and procedures adopted by the
24corporation to govern the council's business, the council shall be subject to s. 15.09.
25The council shall advise the corporation concerning the use of fund moneys and the

1economic development programs administered under this subchapter and shall
2perform other duties, as determined by the corporation.
AB640-ASA1,12,3 3(2) Membership. The council shall consist of the following members:
AB640-ASA1,12,54 (a) One member of the board who shall serve as chairperson of the council and
5shall be appointed by the chairperson of the board.
AB640-ASA1,12,66 (b) The executive director of the investment board or his or her designee.
AB640-ASA1,12,87 (c) The managing director of the Wisconsin Alumni Research Foundation, Inc.,
8or his or her designee.
AB640-ASA1,12,179 (d) Four members appointed by the chairperson of the board to serve terms of
10not more than 4 years, as determined by the chairperson. No member appointed
11under this paragraph may serve more than 2 consecutive terms. At least 3 of the
12members appointed under this paragraph shall have significant experience working
13in or with a key industry cluster in this state. At least one of the members appointed
14under this paragraph shall have significant experience in early stage investing. All
15of the members appointed under this paragraph shall have, at the time of
16appointment, demonstrable access to national networks of stakeholders in their
17respective industries.
AB640-ASA1,12,22 18238.42 Innovation through competition. (1) Local challenges. (a) The
19corporation, in collaboration with the council, may identify local problems affecting
20one or more regions within the state that, in the corporation's opinion, are susceptible
21to being solved over time through private sector innovation and the development and
22use of new technologies, components, systems, or processes.
AB640-ASA1,13,223 (b) The corporation may solicit applications for financial assistance from and
24provide financial assistance to businesses headquartered in this state, or coalitions
25of such businesses or of such businesses and institutions of higher education, for the

1development or deployment of a new technology, component, system, or process to
2solve or significantly improve upon a local problem identified under par. (a).
AB640-ASA1,13,93 (c) The financial assistance under par. (b) shall be provided from the
4appropriation under s. 20.192 (1) (t). In providing the financial assistance, the
5corporation shall give priority to applicants that, in the corporation's opinion,
6present the most compelling potential solution to the problem and the most credible
7business case for eventually marketing a solution that solves or significantly
8improves upon the problem and that demonstrates a potential to increase jobs in this
9state or reduce costs to the state or a political subdivision of the state.
AB640-ASA1,13,13 10(2) Grand challenges. (a) The corporation may identify problems affecting
11a significant portion of the state or nation that, in the corporation's opinion, are
12susceptible to being solved over time through private sector innovation and the
13development and use of new technologies, components, systems, or processes.
AB640-ASA1,13,1814 (b) The corporation may solicit applications for financial assistance from and
15provide financial assistance to businesses headquartered in this state, or coalitions
16of such businesses or of such businesses and institutions of higher education, for the
17development or deployment of a new technology, component, system, or process to
18solve or significantly improve upon a problem identified under par. (a).
AB640-ASA1,13,2519 (c) The financial assistance under par. (b) shall be provided from the
20appropriation under s. 20.192 (1) (t). In providing the financial assistance, the
21corporation shall give priority to applicants that, in the corporation's opinion,
22present the most compelling potential solution to the problem and the most credible
23business case for eventually marketing a solution that solves or significantly
24improves upon the problem and that demonstrates a potential to increase jobs in this
25state or reduce costs to the state or a political subdivision of the state.
AB640-ASA1,14,8
1(3) Maximizing the impact of financial assistance. Using available and
2feasible mechanisms, such as matching funds, the corporation shall undertake to
3maximize the impact of financial assistance provided under this section with the
4understanding that financial assistance provided under this section might not
5immediately result in the development of a marketable technology, component,
6system, or process but that the financial assistance is an important contribution to
7future innovation and manufacturing growth in this state and an important method
8of fostering a culture of private sector collaboration and innovation.
AB640-ASA1,14,12 9238.43 New product research and development. (1) Definition. In this
10section, “early stage business” means a business that satisfies s. 238.15 (1) (a) to (g),
11(k), (kn), and (L), and for which all of the following are true at the time the business
12receives financial assistance under this section, as determined by the corporation:
AB640-ASA1,14,1313 (a) The business has less than 100 employees.
AB640-ASA1,14,1514 (b) The business has been in operation in this state for not more than 10
15consecutive years.
AB640-ASA1,14,1716 (c) The business has not received aggregate private equity investment in cash
17of more than $10,000,000.
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