1995 Wisconsin Act 27

560.797 Enterprise development zone program. (1) Definitions. In this section:

(a) “Environmental pollution" has the meaning given in s. 144.01 (3).

(b) “Project" means economic activity in the state.

(c) “Target population" means persons who are members of targeted groups for the purpose of the credit under ss. 71.07 (2dj), 71.28 (1dj) and 71.47 (1dj).

(d) “Tax benefits" has the meaning given in s. 560.70 (7).

(2) Criteria for designation as an enterprise development zone. (a) Subject to pars. (c) and (d), the department may designate an area as an enterprise development zone for a project if the department determines all of the following:

1. That the project serves a public purpose.

2. That the project will likely retain or increase employment in the state.

3. That the project is not likely to occur or continue without the department's designation of the area as an enterprise development zone.

4. That the project will likely positively affect an area that meets at least 3 of the following criteria:

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 sub. (3) was submitted to the department.

b. The percentage of persons residing in the area who are members of households with household income levels at or below 80% of the statewide median household income is higher than the state average.

c. The percentage of households in the area receiving unemployment compensation under ch. 108, general relief administered under s. 49.02, relief of needy Indian persons under s. 49.046 or aid to families with dependent children under s. 49.19 is higher than the state average.

d. In the 36 months immediately preceding the date on which the application under sub. (3) was submitted to the department, 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).

e. An employer in the vicinity of the area has given public notice under s. 109.07 (1m) of either a business closing or a mass layoff of at least 25 employes, or 25% of the employes, of a business, whichever is greater, that will result in a number of workers in the area being laid off permanently.

f. Property values in the area have been declining.

g. There has been a decline in the population in the area.

(b) In making a determination under par. (a), the department shall consider all of the following:

1. The extent of poverty, unemployment or other factors contributing to general economic hardship in the area.

2. The prospects for new investment and economic development in the area.

3. The amount of investment that is likely to result from the project.

4. The number of jobs that are likely to be created as a result of the project.

5. The number of jobs that are likely to be available to the target population as a result of the project.

6. The competitive effect of designating the area as an enterprise development zone on other businesses in the area.

7. The needs of other areas of the state.

8. Any other factors that the department considers relevant.

(c) The department may not designate as an enterprise development zone, or as any part of an enterprise development zone, an area that is located within the boundaries of an area that is designated as a development zone under s. 560.71, or as a development opportunity zone under s. 560.795, the designation of which is in effect.

(d) The department may not designate more than 50 enterprise development zones unless the department obtains the approval of the joint committee on finance to do so.

(3) Application and project plan. (a) A person that conducts or that intends to conduct a project and that desires to have the area in which the project is or is to be conducted designated as an enterprise development zone for the purpose of claiming tax benefits may submit to the department an application and a project plan.

(b) A project plan under par. (a) shall include all of the following:

1. The name and address of the person's business for which tax benefits will be claimed.

2. The appropriate Wisconsin tax identification number of the person.

3. The names and addresses of other locations outside of the area proposed to be designated as an enterprise development zone where the person conducts business and a description of the business activities conducted at those locations.

4. The amount that the person proposes to invest in a business; to spend on the construction, rehabilitation, repair or remodeling of a building; or to spend on the removal or containment of, or the restoration of soil or groundwater affected by, environmental pollution; in the area proposed to be designated as an enterprise development zone.

5. The estimated total investment of the person in the enterprise development zone.

6. The estimated number of jobs that will be created, retained or substantially upgraded as a result of the person's project in relation to the amount of tax benefits estimated for the person.

7. The person's plans to make reasonable attempts to hire employes from the target population.

8. The estimated number of jobs that will be filled by members of the target population.

9. The person's plans to make available or provide day care center benefits, as defined in s. 71.07 (2dd) (a) 1., to each qualifying child, as defined in s. 71.07 (2dd) (a) 3.

10. The boundaries or legal description of the area proposed to be designated as an enterprise development zone.

11. Any other information required by the department or the department of revenue.

(4) Designation, certification and additional duties. (a) Subject to par. (b), if the department approves a project plan under sub. (3) and designates the area in which the person submitting the project plan conducts or intends to conduct the project as an enterprise development zone under the criteria under sub. (2), the department shall certify the person as eligible for tax benefits.

(b) The department may certify only one person as eligible for tax benefits in an area designated as an enterprise development zone.

(c) When the department designates an area as an enterprise development zone for a project, the department shall notify the governing body of any city, village, town or federally recognized American Indian tribe or band in which the area is located of the area's designation.

(d) The department shall notify the department of revenue of all persons entitled to claim tax benefits under this section.

(e) For purposes of s. 49.193 (5), the department shall notify the department of health and social services of the designation of an area as an enterprise development zone and of the governing body of any city, village, town or federally recognized American Indian tribe or band in which the area is located.

(f) The tax benefits for which a person is certified as eligible under this subsection are not transferable to another person, business or location, except to the extent permitted under section 383 of the internal revenue code.

(5) Duration and limits. (a) When the department designates an area as an enterprise development zone under this section, the department shall specify the length of time, not to exceed 84 months, that the designation is effective, subject to par. (d) and sub. (6).

(b) When the department designates an area as an enterprise development zone under this section, the department shall establish a limit, not to exceed $3,000,000, for tax benefits for the enterprise development zone.

(c) Annually, the department shall estimate the amount of foregone state revenue because of tax benefits claimed by persons in each enterprise development zone.

(d) 1. Notwithstanding the length of time specified by the department under par. (a), the designation of an area as an enterprise development zone shall expire 90 days after the day on which the department determines that the foregone tax revenues under par. (c) will equal or exceed the limit established for the enterprise development zone.

2. The department shall immediately notify the department of revenue and the governing body of any city, village, town or federally recognized American Indian tribe or band in which the enterprise development zone is located of a change in the expiration date of the enterprise development zone under this paragraph.

(6) Revocation of entitlement. (a) The department shall revoke the entitlement of a person to claim tax benefits under this section, and the designation of the area as an enterprise development zone shall expire, if the person does any of the following:

1. Supplies false or misleading information to obtain the tax benefits.

2. Leaves the enterprise development zone to conduct substantially the same business outside of the enterprise development zone.

3. Ceases operations in the enterprise development zone and does not renew operation of the trade or business or a similar trade or business in the enterprise development zone within 12 months.

(b) The department shall notify the department of revenue within 30 days after revoking an entitlement under par. (a).

27,6936sm Section 6936sm. 560.797 (2) (a) 4. c. of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

560.797 (2) (a) 4. c. The percentage of households in the area receiving unemployment compensation under ch. 108, general relief administered under s. 49.02, relief of needy Indian persons under s. 49.046 funded by a relief block grant under ch. 49 or aid to families with dependent children under s. 49.19 is higher than the state average.

27,6936v Section 6936v. 560.797 (4) (e) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

560.797 (4) (e) For purposes of s. 49.193 (5), the department shall notify the department of health and social services industry, labor and human relations of the designation of an area as an enterprise development zone and of the governing body of any city, village, town or federally recognized American Indian tribe or band in which the area is located.

27,6937 Section 6937 . 560.80 (3) of the statutes is amended to read:

560.80 (3) “Early planning project" means the preliminary stages of considering and planning the start-up or expansion of a business that will be a minority business.

27,6938 Section 6938 . 560.82 (4) (a) of the statutes is amended to read:

560.82 (4) (a) Award, for grants under sub. (1), more than 5% 10% of the funds appropriated for the fiscal biennium under s. 20.143 (1) (fm).

27,6939 Section 6939 . 560.82 (4) (b) of the statutes is amended to read:

560.82 (4) (b) Award, to any one eligible recipient or for any one early planning project, grants under sub. (1) or s. 560.835 (6) that total more than $5,000 $15,000.

27,6939g Section 6939g. 560.84 (2) (c) 2. of the statutes is amended to read:

560.84 (2) (c) 2. A development zone designated under s. 560.71, a development opportunity zone designated under s. 560.795 or an enterprise development zone designated under s. 560.797.

27,6940 Section 6940 . 560.875 (1) of the statutes is amended to read:

560.875 (1) Annually, the department shall grant to the Great Lakes inter-tribal council the amount appropriated under s. 20.143 (1) (df) to partially fund a program to provide technical assistance for economic development on Indian reservations if the conditions under subs. (2) and (3) are satisfied.

27,6940g Section 6940g. 561.01 (4) of the statutes is repealed.

27,6940h Section 6940h. 561.02 of the statutes is renumbered 561.02 (1) and amended to read:

561.02 (1) The commission shall coordinate and regulate all activities relating to, and promulgate all rules relating to, racing and pari-mutuel wagering conducted under ch. 562, bingo and raffles conducted under ch. 563, and crane games conducted under ch. 564 and the state lottery conducted under ch. 565, and shall perform its duties and functions under ch. 569 regarding Indian gaming.

27,6940j Section 6940j. 561.02 (2) of the statutes is created to read:

561.02 (2) The board shall coordinate and regulate all activities relating to the state lottery under ch. 565, with the assistance of the department of revenue in the manner provided in ch. 565, and the board may promulgate rules relating to the state lottery under ch. 565.

27,6940k Section 6940k. 561.02 (2m) of the statutes is created to read:

561.02 (2m) The board shall appoint a chief legal counsel, who shall also serve as the board's legislative liaison.

27,6940L Section 6940L. 561.03 of the statutes is created to read:

561.03 Executive director. The governor shall nominate, and with the advice and consent of the senate appoint, an executive director of the board, who shall assist the board in performing its duties under s. 561.02 (1).

27,6940m Section 6940m. 561.06 (1) of the statutes is amended to read:

561.06 (1) Provide Subject to s. 565.25 (1m), provide all of the security services for the gaming operations under chs. 562 to 569.

27,6940r Section 6940r. 561.10 of the statutes is repealed.

27,6951 Section 6951 . 562.02 (1) (k) of the statutes is created to read:

562.02 (1) (k) Approve or reject the amount that a licensee is required to deduct from the total amount wagered under s. 562.065 (3) (a).

27,6952 Section 6952 . 562.02 (2) (h) of the statutes is created to read:

562.02 (2) (h) Inspect and conduct investigations of facilities in this state used for breeding or training animals for racing, for the purpose of obtaining compliance with laws relating to the humane treatment of animals.