SB 218

Wisconsin venture capital authority

This bill creates the Wisconsin Venture Capital Authority (authority).

Composition and general operation

Board of directors

Under the bill, a 13-member board of directors (board) governs the authority.

The board consists of a chairperson nominated by the governor who serves at the

pleasure of the governor; the chief executive officer of the Wisconsin Economic

Development Corporation or his or her designee; seven members with substantial

equity investment or angel or early stage seed investment experience, nominated by

the executive director of the State of Wisconsin Investment Board (SWIB) and

appointed with the advice and consent of the senate; two members appointed by the

speaker of the assembly, consisting of one majority and one minority party

representative to the assembly; and two members appointed by the senate majority

leader, consisting of one majority and one minority party senator. Each of the

members of the board nominated by the executive director of SWIB serves a

staggered six-year term and may not be an officer, director, or other principal in an

equity investment firm. Members of the board may not be compensated but may be

reimbursed for actual and necessary expenses, including travel expenses, incurred

in the performance of their duties. The bill requires that the governor, the executive

director of SWIB, the speaker of the assembly, and the senate majority leader

attempt to appoint the initial members of the board within 60 days after the effective

date of the bill.

The bill gives the board the powers necessary or convenient to carry out its

duties, as well as specific powers to conduct its corporate business. Under the bill,

the authority is a participating employer in the Wisconsin Retirement System. The

board may hire an executive director. The members of the board nominated by the

executive director of SWIB; the executive director of the authority, if any; and the

fund manager of the Wisconsin forward jobs fund administered by the authority are

subject to state ethics laws.

Wisconsin forward jobs fund

The bill establishes the Wisconsin forward jobs fund, which is a separate

nonlapsible trust fund. Under the bill, in each fiscal year, beginning in fiscal year

2013–14, and ending in fiscal year 2018–19, the secretary of administration must

transfer moneys to the Wisconsin forward jobs fund from the general fund totaling

$208,000,000. Under the bill, the authority, based upon the recommendation of a

selection committee appointed by the executive director of SWIB, must hire a

qualified fund manager to manage the Wisconsin forward jobs fund. The bill directs

the authority to delegate powers to the fund manager necessary for the fund

manager's administration of the Wisconsin forward jobs fund and the investment

programs created in the bill.