SB636: Bill Text

SB636,12,22 560.70 (6) "Target population" means the residents of a development zone and persons who are members of targeted groups for the purposes of the credit under ss. 71.07 (2dj), 71.28 (1dj) and 71.47 (1dj).

SB636, s. 44 Section 44. 560.71 (1) (cm) of the statutes is repealed.

SB636, s. 45 Section 45. 560.71 (1) (e) of the statutes is repealed and recreated to read:

SB636,12,25 560.71 (1) (e) The department determines all of the following:

SB636,13,2 1. That designation of the area as a development zone will serve a public purpose.

SB636,13,4 2. That designation of the area as a development zone will likely retain or increase employment in the area.

SB636,13,6 3. That economic development in the area is not likely to occur or continue without the department's designation of the area as a development zone.

SB636,13,7 4. That the area meets at least 3 of the following criteria:

SB636,13,10 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. 560.72 (2) or (3) was submitted to the department.

SB636,13,13 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.

SB636,13,16 c. The percentage of households in the area receiving unemployment compensation under ch. 108, relief 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.

SB636,13,20 d. In the 36 months immediately preceding the date on which the application under s. 560.72 (2) or (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).

SB636,13,24 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.

SB636,13,25 f. Property values in the area have been declining.

SB636,14,1 g. There has been a decline in the population in the area.

SB636, s. 46 Section 46. 560.71 (1m) of the statutes is created to read:

SB636,14,4 560.71 (1m) In making a determination under sub. (1) (e), the department shall consider all of the following:

SB636,14,6 (a) The extent of poverty, unemployment or other factors contributing to general economic hardship in the area.

SB636,14,7 (b) The prospects for new investment and economic development in the area.

SB636,14,9 (c) The amount of investment that is likely to result from the designation of the area as a development zone.

SB636,14,11 (d) The number of jobs that are likely to be created or retained in the area as a result of its designation as a development zone.

SB636,14,13 (e) The number of jobs that are likely to be available to the target population as a result of the designation of the area as a development zone.

SB636,14,15 (f) The competitive effect of designating the area as a development zone on other businesses in the vicinity of the area.

SB636,14,16 (g) The needs of other areas of the state.

SB636,14,17 (h) Any other factors that the department considers relevant.

SB636, s. 47 Section 47. 560.71 (3) (a) of the statutes is amended to read:

SB636,14,21 560.71 (3) (a) Determine the number of development zones designated under sub. (1) but may not designate more than 14 20 development zones over the life of the program.

SB636, s. 48 Section 48. 560.72 (2) (c) of the statutes is amended to read:

SB636,14,24 560.72 (2) (c) Evidence that the area meets at least 2 3 of the criteria under s. 560.71 (1) (e), including data on the requirements the area does not meet 4.

SB636, s. 49 Section 49. 560.72 (3) of the statutes is amended to read:

SB636,15,3 560.72 (3) Two or more local governing bodies may submit a joint application nominating a single an area as a development zone, subject to s. 560.735 (2), if each local governing body complies with subs. (1) and (2).

SB636, s. 50 Section 50. 560.72 (4) of the statutes is repealed.

SB636, s. 51 Section 51. 560.723 of the statutes is repealed.

SB636, s. 52 Section 52. 560.725 (1) (intro.) of the statutes is renumbered 560.725 (1) and amended to read:

SB636,15,10 560.725 (1) The department shall evaluate applications received under s. 560.72 (2) to (4) and (3) and development zone plans received under s. 560.73 (1) and (2) according to the following criteria:.

SB636, s. 53 Section 53. 560.725 (1) (a) to (h) of the statutes are repealed.

SB636, s. 54 Section 54. 560.725 (2) of the statutes is amended to read:

SB636,15,18 560.725 (2) Subject to s. 560.735 (5), the department may reduce the size of an area nominated as a development zone, if the department determines the boundaries as proposed by the local governing body in an application under s. 560.72 (2) to (4) 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. 560.735 (1), (3) and (4).

SB636, s. 55 Section 55. 560.725 (3) of the statutes is amended to read:

SB636,15,25 560.725 (3) After evaluating an application submitted under s. 560.72 (2) to (4) or (3), the department may approve the application, subject to any reduction in the size of the nominated area under sub. (2). If the department approves the application, the department shall notify the local governing body and request the local governing body to submit a development zone plan under s. 560.73 (1) or (2), whichever is applicable.

SB636, s. 56 Section 56. 560.73 (1) (c) 6. of the statutes is repealed.

SB636, s. 57 Section 57. 560.73 (1) (f) of the statutes is amended to read:

SB636,16,4 560.73 (1) (f) Any changes in ordinances, or expenditures of the city, village, town, county or American Indian tribe or band to facilitate economic development.

SB636, s. 58 Section 58. 560.73 (1) (g) of the statutes is amended to read:

SB636,16,7 560.73 (1) (g) How the local governing body intends to assess the effectiveness of its development zone plan submitted under this subsection or sub. (2).

SB636, s. 59 Section 59. 560.73 (3) of the statutes is amended to read:

SB636,16,13 560.73 (3) After review based on the relevant criteria under s. 560.725 (1), the department may approve a development zone plan. If the department approves a development zone plan, the department shall designate the area nominated by the local governing body as a development zone, subject to s. 560.71, and notify the local governing body.

SB636, s. 60 Section 60. 560.735 (1) (a) of the statutes is amended to read:

SB636,16,17 560.735 (1) (a) The area contains less than 5% 10% of the valuation of the property of the city, village or town, as determined under s. 70.57, in which the area is located.

SB636, s. 61 Section 61. 560.735 (1) (b) of the statutes is amended to read:

SB636,16,21 560.735 (1) (b) If the area is located within a 1st class city, the population of the area as estimated under s. 16.96 is not less than 4,000 and not more than 5% 10% of the city's population, as estimated under s. 16.96.

SB636, s. 62 Section 62. 560.735 (1) (c) of the statutes is amended to read:

SB636,16,25 560.735 (1) (c) If the area is located within a village, town or city other than a 1st class city, the population of the area is not less than 4,000 1,000 nor more than 10,000, as estimated under s. 16.96.

SB636, s. 63 Section 63. 560.735 (3) of the statutes is repealed.

SB636, s. 64 Section 64. 560.735 (6) (a) (intro.) of the statutes is amended to read:

SB636,17,5 560.735 (6) (a) (intro.) Except in a 1st class city as provided in pars. (b) and (c), 2 separate areas may be nominated or designated as one development zone, if all of the following apply:

SB636, s. 65 Section 65. 560.735 (6) (a) 2. of the statutes is amended to read:

SB636,17,8 560.735 (6) (a) 2. Each area meets at least 2 3 of the criteria listed in s. 560.71 (1) (e) 1. to 6 4.

SB636, s. 66 Section 66. 560.735 (6) (a) 3. of the statutes is amended to read:

SB636,17,11 560.735 (6) (a) 3. Considered together, the areas meet the requirements of subs. sub. (1) and (3).

SB636, s. 67 Section 67. 560.735 (6) (b) of the statutes is amended to read:

SB636,17,15 560.735 (6) (b) In Except as provided in par. (c), in a 1st class city, not more than 4 up to 8 separate areas may be nominated or designated as one development zone, if par. (a) 1. to 3. applies.

SB636, s. 68 Section 68. 560.735 (6) (c) of the statutes is created to read:

SB636,17,19 560.735 (6) (c) If an application is submitted by the governing body of a county under s. 560.72 (2) or (3), up to 4 separate areas may be nominated or designated as one development zone, if par. (a) 1. to 3. applies.

SB636, s. 69 Section 69. 560.74 (2) of the statutes is amended to read:

SB636,17,23 560.74 (2) The department may approve an application for a boundary change if the development zone, as affected by the boundary changes, meets the applicable requirements of s. 560.735 and 2 3 of the criteria under s. 560.71 (1) (e) 1. to 6 4.

SB636, s. 70 Section 70. 560.745 (1) (a) of the statutes is amended to read:

SB636,18,3 560.745 (1) (a) The designation of an area as a development zone shall be effective for 84 months 10 years, beginning on the day the department notifies the local governing body under s. 560.73 (3) of the designation.

SB636, s. 71 Section 71. 560.745 (1) (b) of the statutes is amended to read:

SB636,18,8 560.745 (1) (b) The local governing body may apply to the department for up to 3 12-month extensions one 5-year extension of the designation. The department shall promulgate rules establishing criteria for approving an extension of a designation of an area as a development zone under this subsection.

SB636, s. 72 Section 72. 560.745 (2) (a) of the statutes is amended to read:

SB636,18,13 560.745 (2) (a) When the department designates a development zone under s. 560.71, it shall establish a limit for tax benefits for the development zone determined by allocating to the development zone, under rules promulgated by the department, a portion of $21,155,000 $33,155,000.

SB636, s. 73 Section 73. 560.75 (3) of the statutes is repealed.

SB636, s. 74 Section 74. 560.763 (title) of the statutes is amended to read:

SB636,18,16 560.763 (title) Duties of local governing bodies; advisory boards.

SB636, s. 75 Section 75. 560.763 (1) (a) of the statutes is repealed.

SB636, s. 76 Section 76. 560.763 (2) of the statutes is repealed.

SB636, s. 77 Section 77. 560.763 (3) of the statutes is repealed.

SB636, s. 78 Section 78. 560.79 of the statutes is repealed.

SB636, s. 79 Section 79. 560.797 (1) (c) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

SB636,18,25 560.797 (1) (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) has the meaning given in s. 560.70 (6).

SB636, s. 80 Section 80. Initial applicability.

SB636,19,7 (1) Tax credits. (a) The treatment of sections 20.835 (2) (cm) and (cn), 71.07 (2dd) (f), (2dj) (am) 1. and 8m., (d) and (h) and (2ds) (c) and (h), 71.10 (4) (gd), (ge) and (i), 71.28 (1dd) (f), (1dj) (am) 1. and 8m., (d) and (h) and (1ds) (c) and (h), 71.30 (3) (eb), (ec) and (f), 71.47 (1dd) (f), (1dj) (am) 1. and 8m., (d) and (h) and (1ds) (c) and (h) and 71.49 (1) (eb), (ec) and (f) of the statutes first applies to taxable years beginning on January 1, 1997.

SB636,19,10 (b) The treatment of sections 71.07 (2dd) (a) 1., 71.28 (1dd) (a) 1. and 71.47 (1dd) (a) 1. of the statutes applies retroactively to taxable years beginning on January 1, 1995.

SB636,19,16 (2) Development zone program changes. The treatment of sections 560.70 (4) and (6), 560.71 (1) (cm) and (e) and (1m), 560.72 (2) (c), (3) and (4), 560.723, 560.725 (1) (intro.) and (a) to (h), (2) and (3), 560.73 (1) (f) and (g) and (3), 560.735 (6) (a) (intro.) and 2. and (c) and 560.74 (2) of the statutes first applies to areas nominated for designation as development zones for which applications are submitted on the effective date of this subsection.

SB636,19,17 (End)