AU7 AB1: Bill Text Engrossed

AB1-engrossed,9,10 (1m) Grants. From the appropriation under s. 20.505 (1) (fr), the department may make one or more grants to a local governmental unit for the local governmental unit's expenditures for costs the department determines are associated with development occurring in an electronics and information technology manufacturing zone designated under s. 238.396 (1m), including costs related to infrastructure and public safety.

AB1-engrossed,9,13 (2) Match. The department may require a local governmental unit to match in whole or in part a grant the department makes to the local governmental unit under sub. (1m).

AB1-engrossed,9,15 (2m) Contract. The secretary may contract with a local governmental unit to implement subs. (1m) and (2).

AB1-engrossed,9,19 (3) Moral obligation pledge. (a) Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called upon to do so, it shall make an appropriation to pay the principal and interest of a local governmental unit's municipal obligations, if all of the following apply:

AB1-engrossed,9,22 1. The local governmental unit's municipal obligation is issued to finance costs related to development occurring in or for the benefit of an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,9,24 2. The secretary designates the moral obligation pledge for the local governmental unit's municipal obligation before the municipal obligation is issued, based on a plan that the local governmental unit shall submit to the department on a form prescribed by the department.

AB1-engrossed,10,5 (b) No more than 40 percent of a local governmental unit's aggregate municipal obligations under par. (a) shall be subject to the moral obligation pledge under that paragraph.

AB1-engrossed,10,16 (c) The proceeds of municipal obligations issued by a local governmental unit under this subsection shall be used to finance costs related to development occurring in or for the benefit of an electronics and information technology manufacturing zone designated under s. 238.396 (1m). The legislature determines that the provision of assistance by state agencies to a local governmental unit under this section, any appropriation of funds to a local governmental unit under this section, and the moral obligation pledge under par. (a) serve a substantial statewide public purpose by assisting the development of an electronics and information technology manufacturing zone in the state, by encouraging economic development, by reducing unemployment, and by bringing needed capital into the state for the benefit and welfare of people throughout the state.

AB1-engrossed,3 Section 3. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB1-engrossed,4 Section 4. 20.395 (6) (ad) of the statutes is created to read:

AB1-engrossed,11,8 20.395 (6) (ad) Principal repayment and interest, contingent funding of southeast Wisconsin freeway megaprojects, state funds. From the general fund, a sum sufficient to reimburse s. 20.866 (1) (u) for the payment of principal and interest costs incurred in financing southeast Wisconsin freeway megaprojects, as provided under ss. 20.866 (2) (uuz) and 84.585 and 2017 Wisconsin Act .... (this act), section 60 (1), and to make payments under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a).

AB1-engrossed,4m Section 4m. 20.445 (1) (bg) of the statutes is created to read:

AB1-engrossed,11,12 20.445 (1) (bg) Worker training and employment program. As a continuing appropriation, the amounts in the schedule for the worker training and employment program under s. 106.271.

AB1-engrossed,5 Section 5. 20.505 (1) (fr) of the statutes is created to read:

AB1-engrossed,11,16 20.505 (1) (fr) Grants for local government expenditures. As a continuing appropriation, the amounts in the schedule for grants to local governmental units under s. 16.297.

AB1-engrossed,6 Section 6. 20.835 (2) (cp) of the statutes is created to read:

AB1-engrossed,12,3 20.835 (2) (cp) Electronics and information technology manufacturing zone credit. A sum sufficient to make the payments under ss. 71.07 (3wm) (d) 2. and 71.28 (3wm) (d) 2.

AB1-engrossed,7 Section 7. 20.866 (2) (uuz) of the statutes is created to read:

AB1-engrossed,12,10 20.866 (2) (uuz) Transportation; southeast Wisconsin freeway megaprojects subject to contingency. From the capital improvement fund, a sum sufficient for the department of transportation to fund southeast Wisconsin freeway megaprojects as provided under s. 84.585. Subject to 2017 Wisconsin Act .... (this act), section 60 (1), the state may contract public debt in an amount not to exceed $252,400,000 for these purposes.

AB1-engrossed,9 Section 9. 30.12 (1g) (m) of the statutes is created to read:

AB1-engrossed,12,15 30.12 (1g) (m) A structure or deposit that is related to the construction, access, or operation of a new manufacturing facility in a navigable stream located in an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,10 Section 10. 30.123 (6) (f) of the statutes is created to read:

AB1-engrossed,12,21 30.123 (6) (f) The construction or maintenance of bridges and the construction or placement and maintenance of culverts that are related to the construction, access, or operation of a new manufacturing facility and that affect a portion of a navigable stream within an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,11 Section 11. 30.123 (6m) (intro.) of the statutes is amended to read:

AB1-engrossed,13,3 30.123 (6m) Permits in lieu of exemptions. (intro.) The department may decide to require that a person engaged in an activity that is exempt under sub. (6) (d) or (f) apply for an individual permit or seek authorization under a general permit if the department has conducted an investigation and visited the site of the activity and has determined that conditions specific to the site require restrictions on the activity in order to prevent any of the following:

AB1-engrossed,12 Section 12. 30.19 (1m) (h) of the statutes is created to read:

AB1-engrossed,13,8 30.19 (1m) (h) Any activity that affects a portion of a navigable stream and that is related to the construction, access, or operation of a new manufacturing facility within an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,13 Section 13. 30.195 (7) of the statutes is renumbered 30.195 (7) (intro.) and amended to read:

AB1-engrossed,13,12 30.195 (7) Application of section. (intro.) This section does not apply to municipal any of the following:

AB1-engrossed,13,14 (a) Municipal or county-owned lands in counties having a population of 750,000 or more.

AB1-engrossed,14 Section 14. 30.195 (7) (b) of the statutes is created to read:

AB1-engrossed,13,18 30.195 (7) (b) Activity related to the construction, access, or operation of a new manufacturing facility located in an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,15 Section 15. 61.57 of the statutes is renumbered 61.57 (intro.) and amended to read:

AB1-engrossed,14,2 61.57 Acquisition of recycling or resource recovery facilities without bids. (intro.) A village may contract for the acquisition of any element of a recycling or resource recovery facility the following without submitting the contract for bids as required under s. 61.54 if the village invites developers to submit proposals to provide a completed project and evaluates proposals according to site, cost, design and the developers' experience in other similar projects.:

AB1-engrossed,16 Section 16. 61.57 (1) and (2) of the statutes are created to read:

AB1-engrossed,14,4 61.57 (1) A recycling or resource recovery facility.

AB1-engrossed,14,6 (2) If the village contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m):

AB1-engrossed,14,7 (a) Water and sewer systems.

AB1-engrossed,14,8 (b) Wastewater treatment facilities.

AB1-engrossed,17 Section 17. 62.155 of the statutes is renumbered 62.155 (intro.) and amended to read:

AB1-engrossed,14,16 62.155 Acquisition of recycling or resource recovery facilities without bids. (intro.) A city may contract for the acquisition of any element of a recycling or resource recovery facility the following without submitting the contract for bids as required under s. 62.15 if the city invites developers to submit proposals to provide a completed project and evaluates proposals according to site, cost, design and the developers' experience in other similar projects. :

AB1-engrossed,18 Section 18. 62.155 (1) and (2) of the statutes are created to read:

AB1-engrossed,14,18 62.155 (1) A recycling or resource recovery facility.

AB1-engrossed,14,20 (2) If the city contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m):

AB1-engrossed,14,21 (a) Water and sewer systems.

AB1-engrossed,14,22 (b) Wastewater treatment facilities.

AB1-engrossed,18d Section 18d. 66.0203 (2) (bm) of the statutes is created to read:

AB1-engrossed,15,3 66.0203 (2) (bm) Once a petition is filed under par. (b), no territory within the town may be annexed by any city or village under s. 66.0217 or 66.0219 until 30 days after one of the following occurs:

AB1-engrossed,15,5 1. Subject to subd. 2., the petition is dismissed by the court under sub. (8) or the board under sub. (9).

AB1-engrossed,15,7 2. If the petition is dismissed as described under subd. 1. and the dismissal is appealed as described under s. 66.0209, all appeals are exhausted.

AB1-engrossed,15,8 3. An incorporation referendum is held in the town.

AB1-engrossed,18e Section 18e. 66.0203 (10) of the statutes is created to read:

AB1-engrossed,15,16 66.0203 (10) Certain towns may become a city or village. A town that is adjacent to a city or village that contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m) may become a city or village if the town holds, and approves, an incorporation referendum as described in s. 66.0211 (3). None of the other procedures contained in ss. 66.0201 to 66.0213 need to be fulfilled, and no approval by the board under s. 66.0207 is necessary for the town to become a city or village.

AB1-engrossed,18g Section 18g. 66.0215 (1m) of the statutes is created to read:

AB1-engrossed,15,20 66.0215 (1m) Annexation limitation. Once a petition is filed under sub. (1), no territory within the town may be annexed by any city or village under s. 66.0217 or 66.0219 until 30 days after the referendum is held in the town.

AB1-engrossed,18i Section 18i. 66.02162 (1m) of the statutes is created to read:

AB1-engrossed,15,24 66.02162 (1m) Annexation limitation. Once a resolution is adopted under sub. (1), no territory within the town may be annexed by any city or village under s. 66.0217 or 66.0219 until 30 days after the referendum is held in the town.

AB1-engrossed,19 Section 19. 66.1105 (2) (f) 1. (intro.) of the statutes is amended to read:

AB1-engrossed,16,18 66.1105 (2) (f) 1. (intro.) “Project costs" mean any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city which are listed in a project plan as costs of public works or improvements within a tax incremental district or, to the extent provided in this subd. 1. (intro.) or subds. 1. k., 1. m., and 1. n., or sub. (20) (c), without the district, plus any incidental costs, diminished by any income, special assessments, or other revenues, including user fees or charges, other than tax increments, received or reasonably expected to be received by the city in connection with the implementation of the plan. For any tax incremental district for which a project plan is approved on or after July 31, 1981, only a proportionate share of the costs permitted under this subdivision may be included as project costs to the extent that they benefit the tax incremental district, except that expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by a 1st class city, to fund parking facilities ancillary to and within one mile from public entertainment facilities, including a sports and entertainment arena, shall be considered to benefit any tax incremental district located in whole or in part within a one-mile radius of such parking facilities. To the extent the costs benefit the municipality outside the tax incremental district, a proportionate share of the cost is not a project cost. “Project costs" include:

AB1-engrossed,20 Section 20. 66.1105 (4) (gm) 4. c. of the statutes is amended to read:

AB1-engrossed,17,6 66.1105 (4) (gm) 4. c. Except as provided in subs. (10) (c), (16) (d), (17), and (18) (c) 3., and (20) (b), the equalized value of taxable property of the district plus the value increment of all existing districts does not exceed 12 percent of the total equalized value of taxable property within the city. In determining the equalized value of taxable property under this subd. 4. c. or sub. (17) (c), the department of revenue shall base its calculations on the most recent equalized value of taxable property of the district that is reported under s. 70.57 (1m) before the date on which the resolution under this paragraph is adopted. If the department of revenue determines that a local legislative body exceeds the 12 percent limit described in this subd. 4. c. or sub. (17) (c), the department shall notify the city of its noncompliance, in writing, not later than December 31 of the year in which the department receives the completed application or amendment forms described in sub. (5) (b).

AB1-engrossed,21 Section 21. 66.1105 (20) of the statutes is created to read:

AB1-engrossed,17,13 66.1105 (20) Districts within an electronics and information technology manufacturing zone. (a) Creation. With regard to a tax incremental district that is created in an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m), the district may only be a district that is suitable for industrial sites or mixed-use development, as described in sub. (4) (gm) 4. a., and all of the following apply:

AB1-engrossed,17,20 1. Notwithstanding the dates specified in sub. (4) (gm) 2., if the resolution described under sub. (4) (gm) is adopted during the period between January 1 and December 1, the creation date shall be either the January 1 of the year in which the resolution is adopted or the next subsequent January 1, as specified by the local legislative body in the resolution. If a resolution is adopted during the period between December 2 and December 31, the creation date shall be the next subsequent January 1.

AB1-engrossed,17,23 2. Notwithstanding the October 31 deadline for the city clerk's submission of the forms described in sub. (5) (b), the city clerk shall complete and submit the required forms for a tax incremental district described in this subsection either:

AB1-engrossed,18,2 a. On or before December 31 of the year the resolution under subd. 1. is adopted if the resolution is adopted between January 1 and December 1, and the resolution specifies that the district's creation date is January 1 of the year in which the resolution is adopted.

AB1-engrossed,18,7 b. On or after the next subsequent April 1 and before the next subsequent December 1 of the year the resolution under subd. 1. is adopted if the resolution is adopted between January 1 and December 1 and the resolution specifies that the district's creation date is the next subsequent January 1 or the resolution is adopted between December 2 and December 31.

AB1-engrossed,18,9 (b) Exception to the 12 percent limit. Notwithstanding the 12 percent limit findings requirement described under sub. (4) (gm) 4. c.:

AB1-engrossed,18,11 1. That findings requirement does not apply to a local legislative body's resolution which relates to a district described under this subsection.

AB1-engrossed,18,17 2. After a local legislative body's creation of a district described under this subsection, if that body makes the calculation under sub. (4) (gm) 4. c. for a tax incremental district created under this section but not under this subsection, that findings requirement may not include the value increment of the district created under this subsection, provided that the district created under this subsection has not terminated.

AB1-engrossed,18,20 (c) Expenditures. With regard to a tax incremental district described under this subsection, and subject to par. (ce), the creating city may incur project costs for any of the following, provided that the expenditures benefit the district:

AB1-engrossed,18,21 1. Territory that is located in the same county as the district.

AB1-engrossed,19,7 2. Notwithstanding the provisions of sub. (2) (f) 2. a. and c., the cost of constructing or expanding fire stations, purchasing police and fire equipment, and the cost of general government operating expenses related to providing police and fire protection services, provided that the total of such expenditures do not exceed, over the district's lifetime, 15 percent of the total positive tax increments received by the creating city over the district's lifetime. With regard to capital expenditures that may be made under this subdivision, such expenditures may be made only for the first 84 months following the district's creation, and any expenditures made under this subdivision for constructing or expanding fire stations may be made only for fire stations located within a one-mile radius of the electronics and information technology manufacturing zone that is designated under s. 238.396 (1m).

AB1-engrossed,19,11 (ce) Certification. Before the creating city may incur project costs for any territory that is located outside the district but in the same county as the district, the city must obtain certification from the department of administration that the department believes such a proposed expenditure benefits the district.

AB1-engrossed,19,14 (cm) Expenditure period. Notwithstanding the limitation on expenditures described in sub. (6) (am) 1., expenditures for a district described under this subsection may be made up to the unextended termination date described in par. (e).

AB1-engrossed,19,18 (d) Allocation of positive increments. Notwithstanding the 20-year limit for allocating positive tax increments described in sub. (6) (a) 7., for a tax incremental district described under this subsection, that limit shall be 30 years for purposes of sub. (6) (a) 7.

AB1-engrossed,19,21 (e) Termination. Notwithstanding the 20-year termination requirement specified in sub. (7) (am) 2., for a tax incremental district described under this subsection, that limit shall be 30 years for purposes of sub. (7) (am) 2.

AB1-engrossed,21m Section 21m. 67.05 (10) of the statutes is amended to read:

AB1-engrossed,20,19 67.05 (10) Direct, annual, irrepealable tax. The Except as provided in sub. (10m), the governing body of every municipality proceeding under this chapter shall, at the time of or after the adoption of an initial resolution in compliance with sub. (1) or (2), or, after the approval of the resolution by popular vote when such approval is required, and before issuing any of the contemplated bonds, levy by recorded resolution a direct, annual tax sufficient in amount to pay and for the express purpose of paying the interest on such bonds as it falls due, and also to pay and discharge the principal thereof at maturity. The municipality shall be and continue without power to repeal such levy or obstruct the collection of the tax until all such payments have been made or provided for. After the issue of the bonds, the tax shall be from year to year carried into the tax roll of the municipality and collected as other taxes are collected, provided that the amount of tax carried into the tax roll may be reduced in any year by the amount of any surplus money in the debt service fund created under s. 67.11, and provided further that the municipality issuing the bonds may make an appropriation in advance of the authorization of the bonds to provide funds for any payment coming due on the bonds prior to the first collection of taxes levied for that payment. The amount of the appropriation shall be based on estimates of the amount of bonds to be sold and the rate of interest the bonds will bear. The appropriation shall not be used for any purpose other than that for which appropriated and any surplus in the appropriation shall be transferred to the general fund of the municipality. The municipality is not required to levy a tax equal to the amount of that appropriation.

AB1-engrossed,21n Section 21n. 67.05 (10m) of the statutes is created to read:

AB1-engrossed,21,2 67.05 (10m) Counties may issue sales tax revenue bonds. A county in which an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m) exists may issue bonds under this chapter whose principal and interest are paid only through sales and use tax revenues imposed by the county under s. 77.70. The county shall be and continue without power to repeal such tax or obstruct the collection of the tax until all such payments have been made or provided for.

AB1-engrossed,22 Section 22. 71.05 (6) (a) 15. of the statutes is amended to read:

AB1-engrossed,21,9 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (8r) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

AB1-engrossed,23 Section 23. 71.07 (3w) (bm) 5. of the statutes is created to read:

AB1-engrossed,21,25 71.07 (3w) (bm) 5. In addition to the credits under par. (b) and subds. 1. to 4., and subject to the limitations provided in this subsection and s. 238.399 or s. 560.799, 2009 stats., a claimant that has retained the minimum number of full-time employees determined under s. 238.399 (5) (f) and maintained average zone payroll for the taxable year equal to or greater than the base year may claim as a credit against the tax imposed under s. 71.02 or 71.08 an amount equal to the percentage, as determined by the Wisconsin Economic Development Corporation, of the claimant's zone payroll paid in the 12 months prior to the certification date to the claimant's full-time employees in the enterprise zone whose annual wages are greater than the amount determined by multiplying 2,080 by 150 percent of the federal minimum wage in a tier I county or municipality or greater than $30,000 in a tier II county or municipality. The amount that the claimant may claim as credit under this subdivision for a taxable year shall not exceed $2,000,000. A claimant may claim a credit under this subdivision for no more than 5 consecutive taxable years.

AB1-engrossed,24 Section 24. 71.07 (3wm) of the statutes is created to read:

AB1-engrossed,22,3 71.07 (3wm) Electronics and information technology manufacturing zone credit. (a) Definitions. In this subsection:

AB1-engrossed,22,5 1. “Claimant" means a person who is certified to claim tax benefits under s. 238.396 (3) and who files a claim under this subsection.

AB1-engrossed,22,9 2. “Full-time employee” means an individual who is employed in a job for which the annual pay is at least $30,000 and who is offered retirement, health, and other benefits that are equivalent to the retirement, health, and other benefits offered to an individual who is required to work at least 2,080 hours per year.