SB644: Bill Text

LRB-3963/3

CTS:kjf:rs

2005 - 2006 LEGISLATURE

2005 Senate BILL 644

February 28, 2006 - Introduced by Senators Hansen and Coggs, cosponsored by Representatives Sheridan, Molepske, Berceau, Staskunas, Zepnick and Albers. Referred to Committee on Job Creation, Economic Development and Consumer Affairs.

SB644,1,5 An Act to create 15.157 (14), 20.143 (1) (f), 560.277 and 560.278 of the statutes; relating to: creating a Manufacturing Competitiveness Grant and Loan Program and a Manufacturing Competitiveness Council, providing an exemption from emergency rule procedures, granting rule-making authority, and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill creates a Manufacturing Competitiveness Grant and Loan Program (program) administered by the Department of Commerce (department). The bill provides $1,500,000 of general purpose revenue to fund grants and loans under the program.

Under the bill, the department may award a grant or loan to the Board of Regents of the University of Wisconsin System, the Technical College System Board, and certain tax-exempt entities that assist manufacturers. The bill specifies that a trade association or chamber of commerce is not eligible to receive a grant or loan under the program. Grants and loans must be used to fund projects that do any of the following: 1) promote existing programs to manufacturers in this state; 2) fund demonstration projects to help manufacturers improve their competitive position and document quantifiable results; 3) fund supply-chain development projects in conjunction with manufacturers in this state; 4) develop firm-specific data to help manufacturers understand their competitive position and to inform state policy; or 5) conduct other projects approved by the department, except, with respect to a grant, providing funding for costs of existing organizations or studies that are already in progress.

The bill also creates a 27-member Manufacturing Competitiveness Council (council) attached to the department. Under the bill, the council advises the department in awarding grants and loans under the program and helps the department, the Department of Workforce Development, the technical college system, and the University of Wisconsin System in assisting manufacturers in this state.

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:

SB644, s. 1 Section 1. 15.157 (14) of the statutes is created to read:

SB644,2,4 15.157 (14) Manufacturing competitiveness council. (a) Members. There is created a manufacturing competitiveness council, attached to the department of commerce under s. 15.03, consisting of all of the following:

SB644,2,5 1. The secretary of commerce or his or her designee.

SB644,2,6 2. The secretary of workforce development or his or her designee.

SB644,2,8 3. The president of the Board of Regents of the University of Wisconsin System or his or her designee.

SB644,2,10 4. One person representing a statewide chamber of commerce or similar organization.

SB644,2,12 5. Two persons, each representing one of 2 entities whose primary purpose is to assist manufacturers in improving productivity and competing more effectively.

SB644,2,15 6. Two persons representing the technical college system, at least one of whom is a member of the faculty at a campus in the the system, appointed by the director of the technical college system board.

SB644,2,16 7. One person representing private colleges and universities.

SB644,2,17 8. Five persons representing small manufacturers.

SB644,3,1 9. Four persons representing large manufacturers.

SB644,3,3 10. Five persons representing organized labor, including one person representing a training organization.

SB644,3,4 11. One member appointed by the senate majority leader.

SB644,3,5 12. One member appointed by the senate minority leader.

SB644,3,6 13. One member appointed by the speaker of the assembly.

SB644,3,7 14. One member appointed by the assembly minority leader.

SB644,3,9 (b) Terms. The members appointed under par. (a) 4. to 14. shall be appointed for 3-year terms.

SB644,3,11 (c) From the members appointed under par. (a), the governor may designate chairpersons.

SB644, 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

SB644, s. 3 Section 3. 20.143 (1) (f) of the statutes is created to read:

SB644,3,17 20.143 (1) (f) Manufacturing Competitiveness Grant and Loan Program. As a continuing appropriation, the amounts in the schedule for grants and loans under s. 560.277.

SB644, s. 4 Section 4. 560.277 of the statutes is created to read:

SB644,4,3 560.277 Manufacturing Competitiveness Grant and Loan Program. (1) Definitions. (a) "Council" means the manufacturing competitiveness council under s. 560.278.

SB644,4,8 (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:

SB644,4,10 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.

SB644,4,12 2. The primary purpose of the entity is to assist manufacturers located in this state.

SB644,4,13 3. The entity's primary office is located in this state.

SB644,4,14 4. The entity is not a trade association or chamber of commerce.

SB644,4,15 (c) "Eligible project" means any of the following:

SB644,4,16 1. Promoting existing programs to manufacturers in this state.

SB644,4,18 2. Funding demonstration projects to help manufacturers improve their competitive position and document quantifiable results.

SB644,4,20 3. Funding supply-chain development projects in conjunction with manufacturers in this state.

SB644,4,22 4. Developing firm-specific data to help manufacturers understand their competitive position and to inform state policy.

SB644,4,25 5. Conducting other projects approved by the department, except, with respect to a grant, providing funding for costs of existing organizations or studies that are already in progress.

SB644,5,3 (2) Grants and loans authorized. The department may, after consulting with the council, award a grant or loan to an eligible organization for the purpose of funding an eligible project.

SB644,5,7 (3) Application. (a) Initial application. To obtain a grant or loan under sub. (2), an eligible organization shall apply to the department in the form and manner prescribed by the department by rule. Each application for an initial grant or loan under sub. (2) shall include all of the following information:

SB644,5,8 1. The project budget.