SB878,3 11Section 3. 16.295 (5) (c) 3. of the statutes, as created by 2023 Wisconsin Act
1219
, is amended to read:
SB878,2,1613 16.295 (5) (c) 3. Of the moneys designated under par. (b) 4., the investment
14manager shall commit all of those moneys to at least 4 investments in venture capital
15funds headquartered in this state within 24 months after the date the investment
16manager receives the moneys.
SB878,4 17Section 4 . 16.295 (5) (d) 1. of the statutes, as affected by 2023 Wisconsin Act
1819
, is amended to read:
SB878,3,1419 16.295 (5) (d) 1. Make new investments in an amount equal to the moneys it
20receives under par. (b) in one or more businesses that are headquartered in this state
21and employ at least 50 percent of their full-time employees, including any subsidiary

1or other affiliated entity, in this state, and invest at least one-half of those moneys
2in one or more businesses that employ fewer than 150 full-time employees, including
3any subsidiary or other affiliated entity, when the venture capital fund first invests
4moneys in the business under this section. The venture capital fund's contract with
5a business in which the venture capital fund makes an investment under this
6subdivision shall require that, if within 3 years after the venture capital fund makes
7that its initial investment, the business relocates its headquarters outside of this
8state or fails to employ at least 50 percent of its full-time employees, including any
9subsidiary or other affiliated entity, in this state, the business shall promptly pay to
10the venture capital fund an amount equal to the total amount of moneys designated
11under par. (b) 1. and 4. that the venture capital fund invested in the business. The
12venture capital fund shall reinvest those moneys in one or more businesses that are
13eligible to receive an investment under this subdivision, subject to the requirements
14of this section.
SB878,5 15Section 5 . 16.295 (5) (d) 4. of the statutes is amended to read:
SB878,3,2516 16.295 (5) (d) 4. At least match Ensure that any moneys it receives under par.
17(b) and invests in a business is accompanied with an investment in that business of
18moneys the venture capital fund has raised from sources other than the investment
19manager. The investment manager venture capital fund shall ensure that, on
20average, for every $1 a venture capital fund receives under par. (b) and invests in a
21business, the venture capital fund invests $2 in that business from sources other
22than the investment manager
when measured across all individual businesses
23receiving moneys under this paragraph, the venture capital fund at least matches
24any moneys it receives under par. (b) with investments in such businesses the
25venture capital fund has raised from sources other than the investment manager
.
SB878,6
1Section 6 . 16.295 (6) (a) of the statutes is amended to read:
SB878,4,52 16.295 (6) (a) The investment manager shall hold in an escrow account at a
3bank with its headquarters in this state
its gross proceeds from all investments of
4the moneys designated under sub. (5) (b) 1. and 4. until the investment manager
5satisfies allocates the proceeds as provided in par. (b) (c).
SB878,7 6Section 7 . 16.295 (6) (b) of the statutes is repealed.
SB878,8 7Section 8 . 16.295 (6) (c) of the statutes is repealed and recreated to read:
SB878,4,118 16.295 (6) (c) Within 24 months after receiving any proceeds from the
9investment of the moneys designated under sub. (5) (b) 1. and 4., the investment
10manager shall commit 90 percent of the gross proceeds to investments in venture
11capital funds headquartered in this state.
SB878,9 12Section 9 . 16.295 (6) (d) of the statutes is created to read:
SB878,4,2013 16.295 (6) (d) 1. The investment manager shall ensure that the gross proceeds
14resulting from investments made with moneys designated under sub. (5) (b) 1. and
154. are reinvested so that when averaged across all venture capital fund recipients,
16for every $1 of moneys reinvested as set forth in par. (c), venture capital fund
17recipients must receive $2 from sources other than the investment manager. Any
18individual business that receives an investment made by the investment manager
19under par. (c) is required to receive additional investments made by sources other
20than the investment manager.
SB878,4,2321 2. The investment manager shall contract with each venture capital fund that
22receives moneys under par. (c). Each contract shall require the venture capital fund
23to:
SB878,5,1524 a. Make new investments in an amount equal to the moneys it receives under
25par. (c) in one or more businesses that are headquartered in this state and employ

1at least 50 percent of their full-time employees, including any subsidiary or other
2affiliated entity, in this state, and invest at least one-half of those moneys in one or
3more businesses that employ fewer than 150 full-time employees, including any
4subsidiary or other affiliated entity, when the venture capital fund makes its initial
5investment of moneys in the business under this section. The venture capital fund's
6contract with a business in which the venture capital fund makes an investment
7under this subsection shall require that, if within 3 years after the venture capital
8fund makes its initial investment, the business relocates its headquarters outside of
9this state or fails to employ at least 50 percent of its full-time employees, including
10any subsidiary or other affiliated entity, in this state, the business shall promptly pay
11to the venture capital fund an amount equal to the total amount of moneys
12designated under par. (c) that the venture capital fund invested in the business. The
13venture capital fund shall reinvest those moneys in one or more businesses that are
14eligible to receive an investment under this subdivision, subject to the requirements
15of this section.
SB878,5,2016 b. Invest all of the moneys it receives under par. (c) in businesses in the
17agriculture, information technology, engineered products, advanced manufacturing,
18medical devices, or medical imaging industry and attempt to ensure that all those
19moneys are invested in businesses that are diverse with respect to geographic
20location within this state.
SB878,5,2321 c. Provide to the investment manager the information necessary for the
22investment manager to complete the annual report under sub. (7) (a) and the
23quarterly report under sub. (7) (c).
SB878,6,224 d. Disclose to the investment manager and the department any interest that
25the venture capital fund or an owner, stockholder, partner, officer, director, member,

1employee, or agent of the venture capital fund holds in a business in which the
2venture capital fund invests or intends to invest moneys received under par. (c).
SB878,10 3Section 10 . 16.295 (7) (a) 2. of the statutes is amended to read:
SB878,6,54 16.295 (7) (a) 2. The investment manager's internal rate of return from
5investments under sub. subs. (5) (b) and (6) (c).
SB878,11 6Section 11 . 16.295 (7) (a) 3. (intro.) of the statutes is amended to read:
SB878,6,87 16.295 (7) (a) 3. (intro.) For each venture capital fund that contracts with the
8investment manager under sub. (5) (d) or (6) (d), all of the following:
SB878,12 9Section 12 . 16.295 (7) (a) 3. b. of the statutes is amended to read:
SB878,6,1110 16.295 (7) (a) 3. b. The amounts invested in the venture capital fund under sub.
11subs. (5) (b) and (6) (c).
SB878,13 12Section 13 . 16.295 (7) (a) 3. d. of the statutes is amended to read:
SB878,6,1413 16.295 (7) (a) 3. d. The venture capital fund's average internal rate of return
14on its investments of the moneys it received under sub. (5) (b) or (6) (c).
SB878,14 15Section 14 . 16.295 (7) (a) 4. (intro.) of the statutes is amended to read:
SB878,6,1816 16.295 (7) (a) 4. (intro.) For each business in which a venture capital fund held
17an investment of moneys the venture capital fund received under sub. (5) (b) or (6)
18(c)
, all of the following:
SB878,15 19Section 15 . 16.295 (7) (a) 4. f. of the statutes is amended to read:
SB878,6,2520 16.295 (7) (a) 4. f. A statement of the number of employees the business
21employed when the venture capital fund first invested moneys in the business that
22the venture capital fund received under sub. (5) (b) or (6) (c), the number of employees
23the business employed on the first day of the investment manager's fiscal year, and
24the number of employees the business employed on the last day of the investment
25manager's fiscal year.
SB878,16
1Section 16. 16.295 (7) (c) 1. of the statutes is amended to read:
SB878,7,32 16.295 (7) (c) 1. An identification of each venture capital fund under contract
3with the investment manager under sub. (5) (d) or (6) (d).
SB878,17 4Section 17 . 16.295 (7) (c) 2. of the statutes, as affected by 2023 Wisconsin Act
519
, is amended to read:
SB878,7,106 16.295 (7) (c) 2. An identification of each business in which a venture capital
7fund held an investment of moneys the venture capital fund received under sub. (5)
8(b) or (6) (c) and a statement of the amount of the investment in each business that
9separately specifies the amount of moneys designated under sub. (5) (b) 1. or 4. that
10were contributed to the investment.
SB878,18 11Section 18 . 16.295 (7) (c) 3. of the statutes is amended to read:
SB878,7,1512 16.295 (7) (c) 3. A statement of the number of employees the business employed
13when the venture capital fund first invested moneys in the business that the venture
14capital fund received under sub. (5) (b) or (6) (c) and the number of employees the
15business employed at the end of the quarter.
SB878,19 16Section 19 . 16.295 (8) (intro.) of the statutes is amended to read:
SB878,7,1917 16.295 (8) Progress reports. (intro.) In 2015 and, 2018, and 2024, no later
18than March 1, the department shall submit reports to the joint committee on finance
19that include all of the following:
SB878,7,2020 (End)
Loading...
Loading...