AB712: Bill Text

LRB-3770/1

RJM&PG:kmg:rs

2003 - 2004 LEGISLATURE

2003 Assembly BILL 712

January 5, 2004 - Introduced by Representatives Shilling, Taylor, Turner, Black, Staskunas, J. Lehman, Berceau, Albers, Vruwink and Plouff, cosponsored by Senators Hansen, Wirch, Lassa, Erpenbach and Roessler. Referred to Committee on Economic Development.

AB712,1,5 An Act to create 15.155 (2m), 20.143 (1) (f), 20.292 (1) (br), 38.04 (25) and 560.277 of the statutes; relating to: creating a Manufacturing Competitiveness Grant Program and a Manufacturing Competitiveness Board, providing an exemption from emergency rule procedures, granting rule-making authority, and making appropriations.

Analysis by the Legislative Reference Bureau

This bill creates a Manufacturing Competitiveness Grant Program (program), which is administered by a Manufacturing Competitiveness Board (board) created under the bill. The bill provides $9,500,000 of general purpose revenue to fund grants under the program, although the aggregate total of all initial grants is limited to $2,500,000.

Under the bill, the board may make grants to the Board of Regents of the University of Wisconsin System, the Technical College System Board, and certain entities that assist manufacturers. The bill specifies that a trade association or chamber of commerce is not eligible to receive a grant under the program. A grant may be used to fund, at least in part, any project that assists a manufacturer in accomplishing improved productivity, reduced costs of operation, the use of new technology in the manufacturing process, the improvement of the skills of its workforce, the creation of new products, sales in new markets, or any other goal approved by the board that benefits manufacturing in this state.

The bill also provides $500,000 to the Technical College System Board to contract with and award grants to the tax-exempt organizations described above for the purpose of conducting surveys to determine what manufacturers need in order to improve productivity and stay competitive and to provide technical assistance to manufacturers.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB712, s. 1 Section 1. 15.155 (2m) of the statutes is created to read:

AB712,2,4 15.155 (2m) Manufacturing competitiveness board. (a) Members. There is created a manufacturing competitiveness board, attached to the department of commerce under s. 15.03, consisting of all of the following:

AB712,2,5 1. The secretary of commerce or his or her designee.

AB712,2,6 2. The secretary of workforce development or his or her designee.

AB712,2,8 3. The president of the Board of Regents of the University of Wisconsin System or his or her designee.

AB712,2,9 4. The president of the technical college system board or his or her designee.

AB712,2,10 5. A member of the public representing organized labor.

AB712,2,11 6. A member of the public representing manufacturers.

AB712,2,12 7. A member of the public representing the public interest.

AB712,2,15 8. The chairperson of the board of directors of each of 2 entities, the primary purpose of which is to assist manufacturers in improving productivity and competing more effectively.

AB712,2,17 (b) Terms. The members appointed under par. (a) 5., 6., and 7. shall be appointed for 3-year terms.

AB712, s. 2 Section 2. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB712, s. 3 Section 3. 20.143 (1) (f) of the statutes is created to read:

AB712,3,3 20.143 (1) (f) Manufacturing Competitiveness Grant Program. As a continuing appropriation, the amounts in the schedule for grants under s. 560.277.

AB712, s. 4 Section 4. 20.292 (1) (br) of the statutes is created to read:

AB712,3,7 20.292 (1) (br) Manufacturing Competitiveness Grant Program. As a continuing appropriation, the amounts in the schedule for the Manufacturing Competitiveness Grant Program under s. 38.04 (25).

AB712, s. 5 Section 5. 38.04 (25) of the statutes is created to read:

AB712,3,11 38.04 (25) Manufacturing Competitiveness Grant Program. (a) In this subsection, "eligible organization" means an organization that satisfies the criteria under s. 560.277 (1) (b) 1. to 4.

AB712,3,14 (b) The board shall contract with eligible organizations for the purpose of conducting surveys to determine what manufacturers need to improve productivity and stay competitive.

AB712,4,2 (c) The board shall award grants to eligible organizations to provide technical assistance to manufacturers.

AB712, s. 6 Section 6. 560.277 of the statutes is created to read:

AB712,4,5 560.277 Manufacturing Competitiveness Grant Program. (1) Definitions. (a) "Board" means the manufacturing competitiveness board.

AB712,4,10 (b) "Eligible organization" means the Board of Regents of the University of Wisconsin System, the technical college system board, an entity, other than a trade association or chamber of commerce, the primary purpose of which is to assist manufacturers in improving productivity and competing more effectively, and any entity that satisfies all of the following conditions:

AB712,4,12 1. The entity is described under section 501 (c) (3) of the Internal Revenue Code and is exempt from taxation under section 501 (a) of the Internal Revenue Code.

AB712,4,14 2. The primary purpose of the entity is to assist manufacturers located in this state.

AB712,4,15 3. The entity's primary office is located in this state.

AB712,4,16 4. The entity is not a trade association or chamber of commerce.

AB712,4,18 (c) "Eligible project" means a project that assists a manufacturer in accomplishing any of the following:

AB712,4,19 1. Improved productivity.

AB712,4,20 2. Reduced costs of operation.

AB712,4,21 3. The use of new technology in the manufacturing process.

AB712,4,22 4. The improvement of the skills of its workforce.

AB712,4,23 5. The creation of new products.

AB712,4,24 6. Sales in new markets.

AB712,5,2 7. Any other goal approved by the board that benefits manufacturing in this state.

AB712,5,8 (2) Grants authorized. The board may make a grant to an eligible organization for the purpose of funding, at least in part, an eligible project. The total of all grants under this subsection resulting from initial applications may not exceed $2,500,000. If an eligible organization receives a grant under this subsection, any subsequent grant made to that organization under this subsection may not exceed 3 times the amount of the preceding grant.

AB712,5,12 (3) Application. (a) Initial application. To obtain a grant under sub. (2), an eligible organization shall apply to the board in the form and manner prescribed by rule of the department. Each application for an initial grant under sub. (2) shall include all of the following information: