SB357,5,1413 3. Distribution of business subsidy amounts, categorized by the length of time
14over which the subsidy is provided.
SB357,5,1615 4. Distribution of business subsidies, categorized by type of subsidy, amount of
16subsidy, and public purpose.
SB357,5,1817 5. The percentage and number of recipients that reached their goals by the
18times specified in their subsidy agreements under s. 20.9265 (2) (a) 6.
SB357,5,2019 6. The percentage and number of recipients that reached their interim goals,
20if any.
SB357,5,2221 7. The percentage and number of recipients that did not reach their goals by
22the times specified in their subsidy agreements under s. 20.9265 (2) (a) 6.
SB357,5,2523 8. The total dollar amount of business subsidies provided to recipients that did
24not reach their goals by the times specified in their subsidy agreements under s.
2520.9265 (2) (a) 6.
SB357,6,2
19. The number of jobs created as a result of business subsidies, shown in
2separate wage bands, as defined in s. 20.926 (10).
SB357,6,43 10. Fringe benefits paid or otherwise provided as a result of business subsidies,
4shown in separate wage bands, as defined in s. 20.926 (10).
SB357,6,105 (d) The compilation and summary of the reports under s. 20.9265 (4) (a) shall
6be presented in a manner that allows for comparisons across time periods and among
7grantors and, in addition, shall include sufficient information to enable comparisons
8between wages paid and fringe benefits provided by new jobs created as a result of
9business subsidies and wages paid and fringe benefits provided by comparable jobs
10in each area in which the new jobs are created.
SB357,6,1711 (e) In addition to summarizing and compiling the reports under s. 20.9265 (4)
12(a), the legislative audit bureau shall include in the report under this subsection a
13comparison and evaluation of the effectiveness of each business subsidy, or program
14under which business subsidies are provided, in achieving a public purpose and
15recommendations for improving the programs. The legislative audit bureau is not
16required to compare and evaluate under this paragraph the programs included in the
17reports filed under s. 20.9265 (4) (b) and (c).
SB357,6,2118 (f) The legislative audit bureau may develop a report form for the manual or
19electronic submission of the report required under s. 20.9265 (4) (a) to ensure that
20the appropriate data is collected to enable the legislative audit bureau to satisfy the
21requirements under this subsection.
SB357,6,2222 (g) The report under this subsection is open to public inspection.
SB357, s. 2 23Section 2. 20.001 (intro.) of the statutes is amended to read:
SB357,6,25 2420.001 Definitions and abbreviations. (intro.) In Except as otherwise
25provided, in
this chapter terms and abbreviations have the following meanings:
SB357, s. 3
1Section 3. 20.926 of the statutes is created to read:
SB357,7,3 220.926 Definitions for business subsidy awards and reports. In this
3section and s. 20.9265:
SB357,7,4 4(1) "Agency" means a state agency or a local government agency.
SB357,7,5 5(2) "Business" means any of the following:
SB357,7,66 (a) A person engaged in a business enterprise for profit in this state.
SB357,7,107 (b) An organization or enterprise operating not for profit in this state that has
8at least 100 full-time employees with a ratio of highest-paid to lowest-paid
9employee that exceeds 10 to one, determined on the basis of full-time equivalent
10positions.
SB357,7,12 11(3) (a) Except as provided in par. (b), "business subsidy" means any of the
12following:
SB357,7,1513 1. Public improvements that cost at least $25,000, that are made to buildings
14or lands owned by the state or a political subdivision, and that exclusively benefit a
15single business at the time that the improvements are made.
SB357,7,1716 2. Any of the following that has a cost to an agency or the state of at least
17$25,000 and that is given to a business by an agency:
SB357,7,1818 a. A grant.
SB357,7,1919 b. A contribution of personal or real property or infrastructure.
SB357,7,2220 2m. A transfer of property to a business by an agency for consideration that is
21at least $25,000 below the property's acquisition cost or fair market value, whichever
22is greater, at the time of the transfer.
SB357,7,2323 3. A loan of at least $75,000 that is given to a business by an agency.
SB357,7,2424 (b) "Business subsidy" does not include any of the following:
SB357,8,2
11. Assistance for the sole purpose of providing job readiness and training
2services.
SB357,8,33 2. Housing assistance.
SB357,8,44 3. Energy conservation assistance.
SB357,8,75 4. A reduction or deferral of any tax or fee, including tax credits under ch. 71,
6general tax reductions, and tax reductions resulting from conformity with federal
7law.
SB357,8,98 5. General changes in the tax incremental financing laws and other general tax
9law changes.
SB357,8,1010 6. Worker's compensation and unemployment compensation.
SB357,8,1111 7. Payment to a person from an agency for the purchase of goods or services.
SB357,8,1212 7m. Payments made under ch. 32.
SB357,8,1513 8. Funds from bonds issued for the benefit of any institution, facility, or
14organization described in section 501 (c) (3) of the Internal Revenue Code that is
15exempt from federal taxation under section 501 (a) of the Internal Revenue Code.
SB357,8,1616 9. Assistance for a consortium, as defined in s. 560.60 (3).
SB357,8,1717 10. Any assistance provided by the University of Wisconsin System.
SB357,8,1918 11. Assistance provided by the department of transportation, except for
19assistance provided under s. 84.185 or any similar programs.
SB357,8,2120 12. Federal loan funds provided through the U.S. economic development
21administration.
SB357,8,2322 13. Assistance provided by an agency under a statutory provision that
23identifies the specific recipient or the specific amount.
SB357,8,2424 14. Loans and investments made by the investment board.
SB357,9,3
1(3m) "Development zone" means a development zone under ss. 560.71 to
2560.78, a development opportunity zone under s. 560.795, or an enterprise
3development zone under s. 560.797.
SB357,9,4 4(4) "Grantor" means an agency that awards or provides a business subsidy.
SB357,9,8 5(5) "Local government agency" means a political subdivision, housing
6authority created under ss. 66.1201 to 66.1211, redevelopment authority created
7under s. 66.1333, or community development authority created under s. 66.1335, or
8an entity created or authorized by any of them.
SB357,9,9 9(6) "Political subdivision" means a city, village, town, or county.
SB357,9,11 10(7) "Recipient" means a business that benefits from a business subsidy under
11sub. (3) (a) 1. or that receives a business subsidy under sub. (3) (a) 2., 2m., or 3.
SB357,9,16 12(8) "State agency" means an office, department, agency, institution of higher
13education, association, society, or other body in state government that is created or
14authorized to be created by the constitution or a law, including an authority created
15under ch. 231, 233, 234, or 237. "State agency" does not include the legislature or the
16courts.
SB357,9,17 17(9) "Technology zone" means a technology zone under s. 560.96.
SB357,9,23 18(10) "Wage band" means a range of wages, with the lowest range beginning
19with the federal minimum wage and ending with the wage reflected by rounding the
20federal minimum wage up to the nearest whole dollar and subtracting one cent, and
21with each subsequent range beginning with the nearest whole dollar that is greater
22than the highest wage included within the previous range and ending with the wage
23reflected by adding 99 cents to that whole dollar.
SB357, s. 4 24Section 4. 20.9265 of the statutes is created to read:
SB357,10,10
120.9265 Business subsidies; awarding and reporting requirements. (1)
2Developing criteria; application requirements; public hearings; prohibitions. (a)
3Every grantor shall develop criteria for awarding business subsidies. The criteria
4shall set minimum requirements that a business must meet to be eligible for a
5business subsidy. The criteria shall provide that, if the public purpose for the subsidy
6is job creation, all jobs created as a result of the subsidy must provide compensation
7that is equal to at least 200 percent of the federal poverty line, as defined under 42
8USC 9902
(2), for a family of 2 persons. Compensation may include health insurance
9premiums paid by the employer on behalf of the employee, for purposes of
10determining whether this requirement is met.
SB357,10,1211 (b) A grantor may not award a business subsidy until the grantor has developed
12the criteria required under par. (a).
SB357,10,2013 (c) A copy of the criteria developed under par. (a) shall be submitted along with
14the first annual report filed by the grantor under sub. (4). A copy of any changes to
15the original set of criteria developed under par. (a) shall be submitted along with the
16first annual report that is filed by the grantor after the changes are made. If in
17awarding a business subsidy a grantor deviates from the criteria developed under
18par. (a), the grantor shall document the reason for the deviation in writing and
19submit a copy of that documentation along with the first annual report that is filed
20by the grantor after the deviation occurs.
SB357,11,221 (cm) 1. A business that applies for a business subsidy shall reveal in the
22application whether, in the preceding 5 years, the business has been determined by
23an administrative proceeding, civil action, criminal action, or other legal proceeding
24to have violated any federal or state environmental or labor law. For purposes of this
25paragraph, issuance of an order or acceptance of an agreement requiring corrective

1action or a stipulated fine, forfeiture, or other penalty constitutes a determination
2of a violation, regardless of whether there is a finding or admission of liability.
SB357,11,53 2. For a violation described in subd. 1. that resulted in a finding, the business
4shall describe the finding and the penalty assessed and shall specify the entity that
5made the finding and the location of the public records relating to the matter.
SB357,11,116 3. For a violation described in subd. 1. that resulted in an agreement for
7corrective action or a stipulated fine, forfeiture, or other penalty, the business shall
8provide a summary description of the violation that led to the agreement or
9stipulation and, if the agreement or stipulation is a public record, a summary
10description of the agreement or stipulation and the location of the agreement or
11stipulation as a public record.
SB357,11,2012 (d) 1. Except as provided in subds. 2. and 3., before awarding a business subsidy
13of $500,000 or more, a grantor shall hold at least one public meeting in the political
14subdivision in which the business proposes to conduct the project for which the
15subsidy will be used. The public meeting must be held not less than 30 days before
16a final decision is made on whether to award the subsidy. The purpose of the meeting
17shall be to provide information and receive public comment about the subsidy. The
18grantor shall give notice of the meeting in a manner that is likely to give notice in
19the political subdivision in which the business proposes to conduct the project for
20which the subsidy will be used.
SB357,11,2321 2. Subdivision 1. does not apply if, under another process that is separate and
22distinct from the process under this section, at least one public hearing has been held
23with respect to the project for which the subsidy will be used.
SB357,11,2524 3. Subdivision 1. does not apply if the secretary of administration grants a
25waiver of the requirement because there is insufficient time to hold a public meeting.
SB357,12,2
1(e) A grantor may not award a business subsidy in the form of a grant, a loan,
2or a contribution of personal or real property if any of the following applies:
SB357,12,73 1. The business subsidy will be used to subsidize any portion of the cost of
4moving the business's operations from one political subdivision in this state to
5another political subdivision in this state. This subdivision does not apply if the
6governing body of the political subdivision from which the applicant intends to move
7consents to the move in writing, which may be by resolution.
SB357,12,118 2. The business subsidy will be used to subsidize any portion of the cost of
9moving the business's operations to this state from a state with which this state has
10entered into an agreement or compact related to businesses moving from one state
11to another, except as allowed under the terms of the agreement or compact.
SB357,12,1512 (f) 1. Except as provided in subd. 2., a recipient may not apply for another
13business subsidy, and a grantor may not award another business subsidy to a
14recipient, if the recipient fails to submit a report required under sub. (3) (a) within
156 months of the time a report is required under sub. (3) (b).
SB357,12,1816 2. A recipient that submits a report more than 6 months after the time required
17under sub. (3) (b) may apply for, and may be awarded, another business subsidy only
18upon the approval of the secretary of administration.
SB357,12,21 19(2) Subsidy agreement. (a) Whenever a grantor awards a business subsidy, the
20recipient shall enter into a subsidy agreement with the grantor. The subsidy
21agreement shall include all of the following:
SB357,12,2322 1. A description of the subsidy, including the amount, or fair market value, and
23type of subsidy.
SB357,12,2524 2. A description of a public purpose for the subsidy, other than expanding the
25property tax base.
SB357,13,1
13. A statement of why the subsidy is needed.
SB357,13,22 4. Specific measurable goals for the subsidy.
SB357,13,53 4m. If the public purpose for the subsidy is the creation or retention of jobs,
4specific measurable goals for the number of jobs to be created or retained and wage
5goals for the jobs to be created or retained.
SB357,13,86 5. If the public purpose for the subsidy is the retention of jobs, the total number
7of jobs currently provided by the recipient and identification of the jobs that would
8be lost without the subsidy.
SB357,13,109 6. The time by which the goals specified in subd. 4. and, if applicable, in subd.
104m. are to be achieved.
SB357,13,1211 7. A commitment to continue operations at the location where the subsidy is
12to be used for at least 5 years from the date of receiving the full amount of the subsidy.
SB357,13,1613 8. A description of any financial or other obligation of the recipient if the goals
14under subd. 4. or, if applicable, under subd. 4m. are not met by the time specified
15under subd. 6. or if the recipient ceases operations at the location before the time
16specified in subd. 7.
SB357,13,1717 9. The name and address of the recipient's parent corporation, if any.
SB357,13,1918 10. A list, by amount and provider, of all other public financial assistance for
19the project for which the subsidy will be used.
SB357,13,2420 11. A commitment to ensure that, unless otherwise authorized by the grantor,
21any depreciable tangible personal property purchased with money obtained through
22the subsidy will remain in Wisconsin for at least 5 years or, if the property is mobile,
23the property's base of operations for at least 50 percent of its use will be at a location
24in Wisconsin for at least 5 years.
SB357,14,4
1(b) A subsidy agreement under par. (a) shall be in writing and signed by both
2the recipient and the grantor. If the grantor is a local government agency that is not
3a political subdivision, the governing body of the political subdivision within which
4the local government agency operates must approve the agreement.
SB357,14,7 5(3) Reports of recipients. (a) A recipient shall submit to the grantor that
6awarded the recipient a business subsidy, by the time required under par. (b), a
7report in a format specified by the grantor that provides the following information:
SB357,14,88 1. The type, public purpose, and amount of the subsidy.
SB357,14,109 2. The hourly wage of each job created or retained as a result of the subsidy,
10shown in separate wage bands.
SB357,14,1211 3. The sum of the hourly wages and cost of health insurance premiums paid by
12the recipient, shown in separate wage bands.
SB357,14,1413 4. A statement of the goals identified in the subsidy agreement under sub. (2)
14(a) 4. and a statement of the progress toward meeting those goals.
SB357,14,1815 4m. If the public purpose for the subsidy is the creation or retention of jobs, a
16statement of the goals identified in the subsidy agreement under sub. (2) (a) 4m. and
17a statement of the progress toward meeting the job and wage goals or the date on
18which the job and wage goals were or are expected to be achieved.
SB357,14,2119 5. If the public purpose for the subsidy is the retention of jobs, the total number
20of jobs currently provided by the recipient, shown in separate wage bands, and the
21status of the jobs identified under sub. (2) (a) 5.
SB357,15,222 5m. If the public purpose for the subsidy is the creation of jobs, the total number
23of jobs currently provided by the recipient that satisfy the requirements under sub.
24(1) (a) compared to the average number of jobs provided by the recipient in the 12

1months preceding the period covered by this report that satisfied those
2requirements.
SB357,15,53 6. A statement of any financial or other obligation of the recipient under sub.
4(2) (a) 8. and a statement of the progress toward meeting the obligation or the date
5on which the obligation was or will be met.
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