LRB-3599/1
CTS&JK:lmk:nwn
2007 - 2008 LEGISLATURE
March 11, 2008 - Introduced by Representative Molepske. Referred to Committee
on Jobs and The Economy.
AB935,1,7 1An Act to renumber and amend 560.075 (1) and 560.075 (2); to amend
2560.075 (title); and to create 73.03 (64), 560.075 (1m) (intro.), 560.075 (1m) (a),
3560.075 (1m) (b), 560.075 (1m) (c), 560.075 (1m) (d), 560.075 (2) (b), 560.075 (2)
4(c), 560.075 (3), 560.075 (4) and 560.075 (5) of the statutes; relating to: creating
5reporting and repayment requirements for grants, loans, and tax benefits
6provided to businesses by the Department of Revenue and the Department of
7Commerce.
Analysis by the Legislative Reference Bureau
This bill creates reporting and repayment requirements for recipients of
grants, loans, and tax benefits (development assistance) under certain current
economic development programs.
Under current law, the Department of Commerce (department) may not award
development assistance unless the department enters into an agreement that
requires the recipient to repay the development assistance if, within five years after
receiving the development assistance, the person ceases to conduct in this state the
economic activity for which the person received the development assistance and
commences substantially the same economic activity outside this state.
Under the bill, the department must enter into an agreement with a recipient
of development assistance that requires the recipient to repay the development

assistance as provided under current law or if the recipient fails to make a capital
investment specified in the agreement or fails to create or retain jobs as specified in
the agreement. The department may agree to accept repayment of a pro rata share
of development assistance.
The bill requires a recipient of development assistance to submit an annual
report to the department that contains certain information about the jobs created or
retained as a result of the development assistance. The department may make
reasonable inspections to verify the information contained in such reports. If a
recipient fails to submit a report, the department must suspend further development
assistance to the recipient until the recipient submits the report. Under the bill, the
department must make recipients' annual reports available to the public on the
Internet.
The bill requires the department to submit an annual report to the legislature
that contains certain information about development assistance provided in the
preceding year. Also, the Department of Revenue must annually submit to the
legislature a report identifying taxpayers who received tax benefits in the preceding
year and the amount of tax benefits each taxpayer received.
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:
AB935, s. 1 1Section 1. 73.03 (64) of the statutes is created to read:
AB935,2,62 73.03 (64) Not later than July 1, 2010, and not later than each subsequent July
31, to submit to the legislature the names of all taxpayers who received tax benefits,
4as defined in s. 560.075 (1) (e), in the preceding fiscal year and the amount of tax
5revenue that the state did not collect in the preceding fiscal year as a result of such
6benefits.
AB935, s. 2 7Section 2. 560.075 (title) of the statutes is amended to read:
AB935,2,9 8560.075 (title) Repayment of grants Grants, loans, and tax benefits;
9reporting requirements, development agreements, and repayments
.
AB935, s. 3 10Section 3. 560.075 (1) of the statutes is renumbered 560.075 (1m) (e) and
11amended to read:
AB935,3,4
1560.075 (1m) (e) In this section, "tax "Tax benefits" means the credits under
2ss. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), and (3t), 71.28
3(1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), and (3t), 71.47 (1dd), (1de),
4(1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), and (3t), and 76.636.
AB935, s. 4 5Section 4. 560.075 (1m) (intro.) of the statutes is created to read:
AB935,3,66 560.075 (1m) (intro.) In this section:
AB935, s. 5 7Section 5. 560.075 (1m) (a) of the statutes is created to read:
AB935,3,98 560.075 (1m) (a) "Development assistance" means a grant or loan under this
9chapter or tax benefits.
AB935, s. 6 10Section 6. 560.075 (1m) (b) of the statutes is created to read:
AB935,3,1111 560.075 (1m) (b) "Full-time" means at least 35 hours per week.
AB935, s. 7 12Section 7. 560.075 (1m) (c) of the statutes is created to read:
AB935,3,1313 560.075 (1m) (c) "New employee" does not include any of the following:
AB935,3,1614 1. An employee who performs a job that was previously performed by another
15employee in this state, if that job existed in this state for at least 6 months before
16hiring the employee.
AB935,3,1917 2. A child, grandchild, parent, or spouse of an individual who has a direct or
18indirect ownership interest of at least 5 percent in the profits, capital, or value of a
19business.
AB935, s. 8 20Section 8. 560.075 (1m) (d) of the statutes is created to read:
AB935,3,2121 560.075 (1m) (d) "Part-time" means less than 35 hours per week.
AB935, s. 9 22Section 9. 560.075 (2) of the statutes is renumbered 560.075 (2) (intro.) and
23amended to read:
AB935,4,324 560.075 (2) (intro.) The department may not award a grant or loan under this
25chapter
development assistance to a person or certify a person to receive tax benefits

1unless the department enters into an a development agreement with the person that
2requires the person to repay the grant, loan, or tax benefits if, within development
3assistance if any of the following apply:
AB935,4,8 4(a) Within 5 years after receiving the grant or loan or being certified to receive
5tax benefits
development assistance, the person ceases to conduct in this state the
6economic activity for which the person received the grant or loan or for which the
7person was certified to receive tax benefits
development assistance and commences
8substantially the same economic activity outside this state.
AB935, s. 10 9Section 10. 560.075 (2) (b) of the statutes is created to read:
AB935,4,1110 560.075 (2) (b) The person fails to make a capital investment specified in the
11development agreement.
AB935, s. 11 12Section 11. 560.075 (2) (c) of the statutes is created to read:
AB935,4,1413 560.075 (2) (c) The person fails to create or retain jobs as specified in the
14development agreement.
AB935, s. 12 15Section 12. 560.075 (3) of the statutes is created to read:
AB935,4,2016 560.075 (3) The department shall ensure that a recipient of development
17assistance that violates the provisions of a development agreement repays the full
18amount of the development assistance received, except that the department may
19agree to accept a pro rata share of the amount of the development assistance received
20if the department determines that such a settlement is equitable.
AB935, s. 13 21Section 13. 560.075 (4) of the statutes is created to read:
AB935,4,2422 560.075 (4) (a) A recipient of development assistance shall annually not later
23than December 31 of each calendar year submit to the department a progress report
24that contains all of the following information:
AB935,5,2
11. The program under which the recipient received the development assistance
2and the value of the development assistance provided to the recipient.
AB935,5,83 2. The total number of employees employed by the recipient at the site for which
4the recipient received development assistance, at the time the recipient applied for
5development assistance and at the time the recipient prepared the progress report,
6including the number of permanent full-time employees, the number of part-time
7employees, the number of temporary employees, and the net loss or gain in each
8category of employee.
AB935,5,119 3. The number of any new or retained employees that the recipient represented
10in its application for development assistance would result from development
11assistance, broken down by full-time, part-time, and temporary employees.
AB935,5,1312 4. A statement indicating whether the recipient is in compliance with the terms
13of any development assistance agreement into which the recipient entered.
AB935,5,1714 5. A detailed list of the job classifications or occupations of employees that the
15recipient intends to hire or retain in the future as a result of the development
16assistance the recipient received and the wage the recipient pays or intends to pay
17the employees.
Loading...
Loading...