SB21: Bill Text

SB21,1499,19 (1) (a) Annually verify information submitted to the department of revenue under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637 by persons certified under s. 238.301 235.301 (2) and eligible to receive tax benefits under s. 238.303 235.303.

SB21,1499,21 (b) Notify and obtain written approval from the chief executive officer of the corporation authority for any certification under sub. (2) (j).

SB21,1499,23 (2) Rules Policies and procedures. (intro.) Establish by rule policies and procedures all of the following:

SB21,1500,2 (a) A schedule of hourly wage ranges to be paid, and health insurance benefits to be provided, to an employee by a person certified under s. 238.301 235.301 (2) and the corresponding per employee tax benefit for which a person certified under s. 238.301 235.301 (2) may be eligible.

SB21,1500,8 (b) A definition of "significant investment of capital" for purposes of s. 238.302 235.302 (2), together with a corresponding schedule of tax benefits for which a person who is certified under s. 238.301 235.301 (2) and who conducts a project described in s. 238.302 235.302 (2) may be eligible. The corporation authority shall include in the definition required under this paragraph a schedule of investments that takes into consideration the size or nature of the business.

SB21,1500,12 (c) A definition of "significant investments in the training or reeducation of employees" for purposes of s. 238.302 235.302 (3), together with a corresponding schedule of tax benefits for which a person who is certified under s. 238.301 235.301 (2) and who conducts a project under s. 238.302 235.302 (3) may be eligible.

SB21,1500,15 (d) A schedule of tax benefits for which a person who is certified under s. 238.301 235.301 (2) and who conducts a project that will result in the location or retention of a person's corporate headquarters in Wisconsin may be eligible.

SB21,1500,19 (e) (intro.) The methodology for designating an area as economically distressed under s. 238.304 235.304 (1). The methodology under this paragraph shall require the corporation authority to consider the most current data available for the area and for the state on the following indicators:

SB21,1500,22 (f) A schedule of additional tax benefits for which a person who is certified under s. 238.301 235.301 (2) and who conducts an eligible activity described under s. 238.304 235.304 may be eligible.

SB21,1500,25 (g) Reporting requirements, minimum benchmarks, and outcomes expected of a person certified under s. 238.301 235.301 (2) before that person may receive tax benefits under s. 238.303 235.303.

SB21,1501,2 (h) Policies, criteria, and methodology for allocating a portion of the tax benefits available under s. 238.303 235.303 to rural areas.

SB21,1501,4 (i) Policies, criteria, and methodology for allocating a portion of the tax benefits available under s. 238.303 235.303 to small businesses.

SB21,1501,5 (k) Procedures for implementing ss. 238.301 to 238.306 235.301 to 235.306.

SB21,1501,11 (3) Reporting. Annually, 6 months after the report has been submitted under s. 238.07 235.016 (2), submit to the joint legislative audit committee and to the appropriate standing committees of the legislature under s. 13.172 (3) a comprehensive report assessing the program under ss. 238.301 to 238.306 235.301 to 235.306. The report under this subsection shall update the applicable information provided in the report under s. 238.07 235.016 (2).

SB21,4011 Section 4011. 238.31 of the statutes is renumbered 235.31, and 235.31 (1) (intro.), (ac), (am), (b), (d) and (e) (intro.), 4. a. and d., (1m) (intro.) and (h), (2) and (3) (intro.), as renumbered, are amended to read:

SB21,1501,16 235.31 (1) (intro.) The corporation authority may designate an area as a development zone if all of the following apply:

SB21,1501,18 (ac) The corporation authority has invited a local governing body to nominate the area under s. 238.315 235.315.

SB21,1501,20 (am) A local governing body nominates the area as described in s. 238.32 235.32.

SB21,1501,22 (b) The corporation authority has evaluated the local governing body's application as described in s. 238.325 235.325.

SB21,1501,23 (d) The area meets the applicable requirements under s. 238.335 235.335.

SB21,1501,24 (e) (intro.) The corporation authority determines all of the following:

SB21,1502,3 4. a. The unemployment rate in the area is higher than the state average for the 18 months immediately preceding the date on which the application under s. 238.32 235.32 (2) or (3) was submitted to the corporation authority.

SB21,1502,7 d. In the 36 months immediately preceding the date on which the application under s. 238.32 235.32 (2) or (3) was submitted to the corporation authority, a number of workers in the area were permanently laid off by their employer or became unemployed as a result of a business action subject to s. 109.07 (1m).

SB21,1502,9 (1m) (intro.) In making a determination under sub. (1) (e), the corporation authority shall consider all of the following:

SB21,1502,10 (h) Any other factors that the corporation authority considers relevant.

SB21,1502,13 (2) In determining whether an area meets the requirements under sub. (1) (e) or s. 238.335 235.335, the corporation authority may rely on any data provided by the local governing body that the corporation authority determines is relevant.

SB21,1502,14 (3) (intro.) The corporation authority shall do all of the following:

SB21,4012 Section 4012. 238.315 of the statutes is renumbered 235.315 and amended to read:

SB21,1502,20 235.315 Invitation to nominate area. If the corporation authority determines that an area has experienced or is about to experience economic distress, the corporation authority may invite local governing bodies in the area to nominate the area as a development zone.

SB21,4013 Section 4013. 238.32 of the statutes is renumbered 235.32, and 235.32 (1) (intro.), (2) (intro.), (c), (d) and (i), (3) and (5), as renumbered, are amended to read:

SB21,1503,2 235.32 (1) (intro.) A local governing body may nominate an area as a development zone, if the corporation authority has invited the governing body to nominate the area under s. 238.315 235.315 and if the governing body does all of the following:

SB21,1503,5 (2) (intro.) A local governing body may nominate the area as a development zone by submitting an application to the corporation authority in a form prescribed by the corporation authority. The application shall include all of the following:

SB21,1503,7 (c) Evidence that the area meets at least 3 of the criteria under s. 238.31 235.31 (1) (e) 4.

SB21,1503,9 (d) Evidence that the area meets the applicable requirements of s. 238.335 235.335.

SB21,1503,10 (i) Any other information required by the corporation authority.

SB21,1503,13 (3) Two or more local governing bodies may submit a joint application nominating an area as a development zone, subject to s. 238.335 235.335 (2), if each local governing body complies with subs. (1) and (2).

SB21,1503,15 (5) The corporation authority may permit a local governing body to revise an application that the corporation authority determines is inadequate or incomplete.

SB21,4014 Section 4014. 238.325 of the statutes is renumbered 235.325 and amended to read:

SB21,1503,19 235.325 Evaluation by corporation authority. (1) The corporation authority shall evaluate applications received under s. 238.32 235.32 (2) and (3).

SB21,1503,25 (2) Subject to s. 238.335 235.335 (5), the corporation authority may reduce the size of an area nominated as a development zone, if the corporation authority determines the boundaries as proposed by the local governing body in an application under s. 238.32 235.32 (2) or (3) are inconsistent with the purpose of the development zone program. Any nominated area which is reduced under this subsection need not comply with s. 238.335 235.335 (1) and (4).

SB21,1504,5 (3) After evaluating an application submitted under s. 238.32 235.32 (2) or (3), the corporation authority may approve the application, subject to any reduction in the size of the nominated area under sub. (2). If the corporation authority approves the application, the corporation authority shall designate the area as a development zone, subject to s. 238.31 235.31, and notify the local governing body.

SB21,4015 Section 4015. 238.335 of the statutes is renumbered 235.335, and 235.335 (6) (a) 2. and (c) and (7), as renumbered, are amended to read:

SB21,1504,9 235.335 (6) (a) 2. Each area meets at least 3 of the criteria listed in s. 238.31 235.31 (1) (e) 4.

SB21,1504,12 (c) If an application is submitted by the governing body of a county under s. 238.32 235.32 (2) or (3), up to 4 separate areas may be nominated or designated as one development zone, if par. (a) 1. to 3. applies.

SB21,1504,15 (7) The corporation authority may waive the requirements of this section in a particular case, if the corporation authority determines that application of the requirement is impractical with respect to a particular development zone.

SB21,4016 Section 4016. 238.34 of the statutes is renumbered 235.34, and 235.34 (1), (2), (3) (intro.) and (a), (4), (5) and (6), as renumbered, are amended to read:

SB21,1504,23 235.34 (1) Except as provided under sub. (6), at any time after a development zone is designated by the corporation authority, a local governing body may submit an application to change the boundaries of the development zone. If the boundary change reduces the size of a development zone, the local governing body shall explain why the area excluded should no longer be in a development zone. The corporation authority may require the local governing body to submit additional information.

SB21,1505,2 (2) The corporation authority may approve an application for a boundary change if the development zone, as affected by the boundary changes, meets the applicable requirements of s. 238.335 235.335 and 3 of the criteria under s. 238.31 235.31 (1) (e) 4.

SB21,1505,4 (3) (intro.) If the corporation authority approves an application for a boundary change under sub. (2), it shall do all of the following:

SB21,1505,6 (a) Redetermine the limit on the tax benefits for the development zone established under s. 238.345 235.345 (2) (a).

SB21,1505,9 (4) The change in the boundaries or tax benefits limit of a development zone shall be effective on the day the corporation authority notifies the local governing body under sub. (3) (b).

SB21,1505,14 (5) No change in the boundaries of a development zone may affect the duration of an area as a development zone under s. 238.345 235.345 (1) (a). The corporation authority may consider a change in the boundary of a development zone when evaluating an application for an extension of the designation of an area as a development zone under s. 238.345 235.345 (1) (b).

SB21,1505,17 (6) The corporation authority may not accept any applications under sub. (1) to change the boundaries of a development zone designated under s. 238.31 235.31 on or after March 6, 2009.

SB21,4017 Section 4017. 238.345 of the statutes is renumbered 235.345, and 235.345 (1) (a) and (b), (2) (a), (am), (b), (c) 1. and 2. and (d) and (3) (intro.), (a) and (b), as renumbered, are amended to read:

SB21,1505,23 235.345 (1) (a) The designation of an area as a development zone shall be effective for 240 months, beginning on the day the corporation authority notifies the local governing body under s. 238.325 235.325 (3) of the designation.

SB21,1506,4 (b) The local governing body may apply to the corporation authority for one 60-month extension of the designation. The corporation authority shall adopt rules policies and procedures establishing criteria for approving an extension of a designation of an area as a development zone under this subsection. No applications may be accepted by the corporation authority under this paragraph on or after March 6, 2009.

SB21,1506,7 (2) (a) When the corporation authority designates a development zone under s. 238.31 235.31, it shall establish a limit for tax benefits for the development zone determined by allocating to the development zone a portion of $38,155,000.

SB21,1506,11 (am) Notwithstanding par. (a), the corporation authority may increase the established limit for tax benefits for a development zone. The corporation authority may not increase the limit for tax benefits established for any development zone designated under s. 238.31 235.31 on or after March 6, 2009.

SB21,1506,13 (b) Annually the corporation authority shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each development zone.

SB21,1506,16 (c) 1. Ninety days after the day on which the corporation authority determines that the forgone tax revenues under par. (b) will equal or exceed the limit for the development zone established under par. (a) or (am).

SB21,1506,18 2. The day that the corporation authority withdraws its designation of an area as a development zone under sub. (3).

SB21,1506,20 (d) The corporation authority shall immediately notify the local governing body of a change in the expiration date of the development zone under par. (c).

SB21,1506,22 (3) (intro.) The corporation authority may withdraw the designation of an area as a development zone if any of the following applies:

SB21,1507,2 (a) No person is certified as eligible to receive tax benefits under s. 238.365 235.365 (3) during the 12-month period beginning on the day the area is designated as a development zone and the corporation authority determines that the local governing body that nominated the zone is not in compliance with s. 238.363 235.363.

SB21,1507,5 (b) No person is certified as eligible to receive tax benefits under s. 238.365 235.365 (3) during the 24-month period beginning on the day the area is designated a development zone.

SB21,4018 Section 4018. 238.35 of the statutes is renumbered 235.35, and 235.35 (intro.), (6), (7), (8) and (10), as renumbered, are amended to read:

SB21,1507,9 235.35 Additional duties of the corporation authority. (intro.) The corporation authority shall do all of the following:

SB21,1507,15 (6) Notify University of Wisconsin System Authority small business development centers, the Wisconsin housing and development centers, the central administration of all University of Wisconsin System Authority campuses and regional planning commissions about the development zone program and encourage those entities to provide advice to the corporation authority or local governing bodies on ways to improve the development zone program.

SB21,1507,16 (7) Prepare forms for the certification described under s. 238.365 235.365 (5).

SB21,1507,18 (8) Annually verify information submitted to the corporation authority under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.

SB21,1507,22 (10) Enter into an agreement with the local governing body of a 1st class city where a development zone is designated under s. 238.31 235.31 (3) (c) 1. to provide efficient administration of the development zone program within the development zone.

SB21,4019 Section 4019. 238.363 of the statutes is renumbered 235.363, and 235.363 (1) (intro.) and (c) and (4), as renumbered, are amended to read:

SB21,1508,3 235.363 (1) (intro.) If an area nominated by a local governing body is designated as a development zone under s. 238.31 235.31, the local governing body shall do all of the following:

SB21,1508,5 (c) Assist the corporation authority in the administration of the development zone program.

SB21,1508,9 (4) The local governing body of a 1st class city where a development zone is designated under s. 238.31 235.31 (3) (c) 1. shall enter into an agreement with the corporation authority to provide efficient administration of the development zone program within the development zone.

SB21,4020 Section 4020. 238.365 of the statutes is renumbered 235.365, and 235.365 (intro.), (2), (3) (intro.), (b) and (j) and (5) (g) and (h), as renumbered, are amended to read:

SB21,1508,14 235.365 Certification for tax benefits. (intro.) The corporation authority shall do all of the following:

SB21,1508,16 (2) Determine whether a person applying for tax benefits engages or will engage in economic activity that violates s. 238.38 235.38 (1).

SB21,1508,19 (3) (intro.) Subject to s. 238.38 235.38, certify persons who are eligible to claim tax benefits while an area is designated as a development zone, according to the following criteria:

SB21,1508,21 (b) The person's commitment not to engage in economic activity that violates s. 238.38 235.38 (1).

SB21,1508,23 (j) Any other criteria established under rules policies and procedures adopted by the corporation authority.

SB21,1508,25 (5) (g) The limit under s. 238.368 235.368 on tax benefits the person may claim while an area is designated as a development zone.

SB21,1509,2 (h) Other information required by the corporation authority or the department of revenue.

SB21,4021 Section 4021. 238.368 of the statutes is renumbered 235.368, and 235.368 (1) (a) and (b) (intro.), 1. and 2., (2) (intro.) and (b) and (3) (a) (intro.) and 1. and (b), as renumbered, are amended to read:

SB21,1509,8 235.368 (1) (a) The corporation authority shall establish a limit on the maximum amount of tax benefits a person certified under s. 238.365 235.365 (3) may claim while an area is designated as a development zone.

SB21,1509,10 (b) (intro.) When establishing a limit on tax benefits under par. (a), the corporation authority shall do all of the following:

SB21,1509,11 1. Consider all of the criteria described in s. 238.365 235.365 (3) (a) to (e).

SB21,1509,17 2. Establish a limit which does not greatly exceed a recommended limit, established under rules policies and procedures adopted by the corporation authority based on the cost, number and types of full-time jobs that will be created, retained, or upgraded, including full-time jobs available to members of the targeted population, as a result of the economic activity of the person certified under s. 238.365 235.365 (3).