|For Immediate Release
||CONTACT: org cpowers wisbar Christi Powers
State Bar of Wisconsin
Governor, legislature offer solutions to keep Wisconsin
"Next Economy" signed into law at Venture Capital Summit
MADISON, March 20, 2002 - The 2002 Governor's Summit
on Venture Capital held at the Midwest Express Center in Milwaukee today
served as a fitting background for enactment of legislation to assist in
keeping Wisconsin business and economic climates competitive with other
states. Stemming from the 2001 Governor's Venture Capital Summit, "Next
Economy" legislation was drafted to cultivate and encourage business
growth in Wisconsin. The package includes provisions to encourage
businesses to locate in Wisconsin and remain here.
Atty. Joe Boucher, State Bar of Wisconsin Business Law Section member
and drafter of portions of the package stated, "These changes will make
it easier than ever before to form a business in Wisconsin and keep the
business from leaving as business growth matures."
One of the key provisions in the package is a mechanism for cross
entity mergers and conversions, provisions through which business may
merge or convert into another business entity. At least nine other
states provide these types of provisions, most notably Delaware, which
enjoys national prominence for being a state in the business of
attracting business entity formations and transformations. Wisconsin's
laws in this area have not been updated for years. Under current law, a
Wisconsin business would have to go through a cumbersome process in
order to merge or convert into a different business entity.
"Wisconsin needs to do more to keep pace with other states in
providing the framework for businesses to grow," stated Senator Mark
Meyer (D-La Crosse). "As a legislator, I want to do what I can to keep
Wisconsin business here, and I believe the Next Economy package helps do
Rep. Sue Jeskewitz (R-Menomonee Falls), co-author of the legislation
added, "The Next Economy package provides Wisconsin businesses tools to
stay competitive and stay in Wisconsin."
The Next Economy package also includes provisions to streamline
securities statutes, some of which have not been updated for 30 years.
Updating these provisions will facilitate the ability of small
businesses to raise equity or debt capital and allow Wisconsin to grow
its job market and economic vitality.
"It has been a pleasure for the Business Law Section to work with
these bipartisan legislative authors, Governor McCallum, and the Dept.
of Financial Institutions on this package. We hope to continue this type
of collaborative effort in the future," said Business Law Section Chair
Atty. Dan Eastman.
Next Economy is contained in Senate Bill 333. It has a six-month
delayed effective date.
The State Bar of Wisconsin is the mandatory professional association,
created by the Wisconsin Supreme Court, for attorneys who hold a law
license in Wisconsin. With more than 20,000 members, the State Bar aids
the courts in improving the administration of justice, provides
continuing legal education for its members, and assists Wisconsin
lawyers in carrying out initiatives to educate the public about the
legal system. The State Bar Business Law Section is comprised of 1,700
members who practice business law - both for-profit and non-profit
For more information on the Next Economy, see the article in
Wisconsin Lawyer magazine, "Legislation
Incorporates Cutting-edge Business Combination Concepts," or contact
Senior Government Relations Coordinator Jenny Boese at (800) 444-9404,