Governor: Delete $35,900 GPR annually in base level supplies from the Commerce state operations appropriation to make permanent a lapse required in the 1997-99 biennial budget.
13. DEVELOPMENT AND ENTERPRISE DEVELOPMENT ZONE PROGRAM AND TAX CREDIT MODIFICATIONS
Governor: Modify the development and enterprise development zones programs and tax credits as follows:
a. Limit on Total Tax Credits. The current limit on the total amount of tax credits that can be claimed under the development zone program of $33.2 million would be eliminated. Instead, a maximum limit on the total amount of tax credits that could be claimed under both the development and enterprise development zone programs would be established at $300 million. The enterprise development zone program currently has no overall cap, though each zone is limited to no more than $3 million in tax credits.
b. Enterprise Development Zones. Commerce would be authorized to designate up to 100 enterprise development zones. The current requirement that the Department obtain approval from the Joint Committee on Finance to designate more than 50 zones would be eliminated (64 are currently authorized).
In addition, the Department would be authorized to designate enterprise development zones for environmental remediation projects. Environmental remediation would be defined as removal or containment of environmental pollution and restoration of soil or groundwater that is affected by environmental pollution in a brownfield if that removal, containment or restoration began after the area that contains the site was designated as an enterprise development zone. The Department would be required to determine that the project would likely provide for significant environmental remediation and that other current law criteria were met. Of the total number of enterprise development zones designated, at least 10 enterprise development zones would have to be designated for environmental remediation projects.
c. Development Zones Tax Credit -- Jobs Component. The full-time jobs component of the development zones tax credit would be modified to: (1) increase from $6,500 to $8,000 the maximum credit that could be claimed for each a full-time job that was created and filled by a member of a targeted group; (2) eliminate the credit for retaining a job that is filled by a member of a targeted group; (3) provide a maximum tax credit of $8,000 for retaining a full-time job in an enterprise development zone if Commerce determines that a significant capital investment was made to retain the full time job; (4) increase from $4,000 to $6,000 the maximum tax credit that could be claimed for each full-time job created or retained and filled by an individual who is not a member of a targeted group. In addition, at least one-third of job creation credits claimed would have to be based on jobs created and filled by members of a targeted group. Currently, the credits must be based on jobs created or retained for targeted group members. These modifications would first apply to tax years beginning on January 1, 2000.
d. Administrative Provisions. The requirement that targeted group members for whom tax credits are claimed must be certified within 90 days after the first day of employment would be eliminated. Commerce would be also authorized to specify by rule the circumstances under which an exception could be established from the requirement that the development zones tax credit must be based on regular, full-time nonseasonal jobs that are created or retained.
The bill does not include a fiscal effect to this item.
Wisconsin has two programs which provide tax credits to businesses as incentives to expand and locate in designated economically distressed areas -- development zones (currently 20 are designated) and enterprise development zones (currently 42 are designated). The programs are designed to promote economic growth through job creation and investment in the distressed areas. Designation criteria target areas with high unemployment, low incomes and decreasing property values. Businesses which locate or expand in the different zones are eligible to receive various tax credits.
[Bill Sections: 1708, 1709, 1742, 1743, 1755, 1756, 2999 thru 3014, 9310(1)&(2) and 9343(2)]
14. JOBS SPECIALIST POSITION
Positions
GPR 0.05
Governor: Provide 0.05 jobs specialist position in the Bureau of Enterprise Development to increase the Bureau's 0.95 jobs specialist position to full-time. The person works with businesses in development and enterprise development zones to increase the number of target group members hired by businesses in the zones.
15. CONSOLIDATION OF GPR APPROPRIATIONS
Governor: Delete the main street and technology-based economic development programs GPR appropriations and transfer $659,000 GPR in 1999-00 and $659,700 GPR in 2000-01 and 6.5 GPR positions each year to consolidate the funding and position authority in the economic and community development general program operations appropriation. The amounts transferred would be as follows: (a) main street program--$460,700 in 1999-00, $461,400 in 2000-01 and 4.5 positions annually; (b) technology-based economic development--$198,300 and 2.0 positions annually.
[Bill Sections: 194, 200 and 201]
16. SAFETY PROGRAM FUNDING TRANSFER
Governor: Transfer the funding and position authority ($484,400 FED and 7.5 FED positions) from the Division of Safety and Buildings to the Division of Marketing, Advocacy and Technology to align the funding and positions for the WiSCon safety consultation program with the division that has administrative responsibility for the program.
17. MAIN STREET PROGRAM -- FEES FOR SERVICES
Governor: Authorize the Department to charge reasonable fees for services and information provided to communities that are not participants in the Main Street Program.
The Wisconsin Main Street program provides technical assistance to help communities plan, manage and implement programs to revitalize their downtown business areas through comprehensive economic redevelopment and historic preservation. Up to five municipalities are selected annually for the program based on review and ranking of applications. Municipalities include cities, villages and towns. Commerce staff provide and coordinate intensive training workshops, and on-site consulting related to downtown revitalization and historical preservation to local programs. Commerce also contracts with the National Main Street Center for business area revitalization services and coordinates state and local participation in the programs offered by the National Center.
Commerce provides technical assistance and information on the revitalization of business areas to municipalities not participating in the program. Limited training is provided through an annual, two-day statewide conference and occasional on-site visits to communities. This provision would permit the Department to charge reasonable fees for these services.
[Bill Section: 2937]
18. COMMUNITY-BASED ECONOMIC DEVELOPMENT PROGRAM -- REGIONAL ECONOMIC DEVELOPMENT GRANTS
Governor: Eliminate the requirement, under the community-based economic development (CBED) program, that the Department may not award more than the greater of $100,000 or 10% of the total amount of funding appropriated for CBED grants for regional economic development.
The CBED program provides the following types of financial assistance:
a. Grants to community-based organizations to conduct local development projects. (Community-based organizations are organizations involved in economic development that assist businesses likely to employe persons.)
b. Grants to community-based organizations that use the funds to provide management services to small businesses planning a start-up or expansion project.
c. Grants to political subdivisions to develop economic development or diversification plans.
d. Grants to community-based organizations that use the grant monies to support business incubators or technology-based incubators.
e. Grants to community-based organizations that join with political subdivisions to conduct regional economic development projects that are unique to the area and will stimulate the economy or create or retain jobs.
f. Grants to community-based organizations to support small business local revolving loan funds.
g. Grants to private nonprofit organizations for entrepreneurship training for disadvantaged and at-risk children.
h. Grants to community-based organizations or private nonprofit organizations to conduct venture capital development conferences.
Base level funding for the CBED program is $762,100 GPR.
[Bill Sections: 2954 and 2955]
19. MINORITY BUSINESS DEVELOPMENT FINANCE PROGRAM -- ELIGIBILITY OF LOCAL DEVELOPMENT CORPORATIONS
Governor: Authorize the Minority Business Development Board to award grants or loans to local development corporations to fund eligible development projects under the Minority Business Development Finance (MBDF) program. As a result, local development corporations could fund the following: (a) costs that are incurred in connection with the start-up, expansion or acquisition of a business that is or will be a minority business; or (b) costs incurred in the promotion of economic development and employment opportunities for minority group members or minority businesses.
The MBDF provides the following types of financial assistance:
a. Early planning grants to minority group members or minority businesses to fund projects that consist of the preliminary stages of considering and planning the start-up or expansion of a business that will be a minority business.
b. Business development grants and loans to minority group members or minority businesses to fund development projects involving the start-up, expansion or acquisition of minority businesses or the promotion of economic development and employment opportunities for minority group members or minority businesses.
c. Grants and loans to local development corporations to: (1) make grants or loans to minority group members or minority businesses for development projects; or (2) to create, expand or continue a revolving loan fund program operated by the local development corporation to provide assistance to minority group members or minority businesses.
d. Grants to nonprofit organizations and private financial institutions to fund microloans and education and training programs for minority group members and minority businesses.
e. Grants to nonprofit corporations, nonprofit organizations or business incubators to build or rehabilitate business incubators that benefit minority group members or minority businesses.
Annual base level funding for the MBDF is $429,200 GPR and $167,200 PR from loan repayments.
[Bill Sections: 3015 thru 3020]
20. BUSINESS DEVELOPMENT INITIATIVE PROGRAM MODIFICATIONS
Governor: Modify provisions of the Business Development Initiative (BDI) program as follows:
a. Change the definition of small business under the program to mean a for-profit business having fewer than 100 employes. Currently, the maximum number of employes is 25.
b. Authorize the Department to contract directly with and pay grant proceeds directly to, any person providing technical or management assistance to an individual, small business or nonprofit organization under the BDI program. Under current law, the Department must make the grant to the individual or entity. The recipient then uses the grant to obtain technical or management assistance from service providers.
The Business Development Initiative (BDI) program is designed to help create employment opportunities for persons with severe disabilities by starting or expanding for-profit businesses. The program has five components: (1) direct technical assistance provided by Commerce staff to individuals, small businesses, or nonprofit organizations; (2) technical assistance grants to those entities; (3) technical assistance self-employment grants to disabled individuals; (4) management assistance, working capital and fixed asset financing grants and loans to individuals, small businesses or nonprofit organizations; and (5) the job creation program. The BDI program is funded by both a GPR and program revenue payments appropriation. Base level funding is $150,000 GPR and $60,000 PR.
[Bill Sections: 2974 thru 2978]
21. HAZARDOUS POLLUTION PREVENTION PROGRAM MODIFICATIONS AND BIOTECHNOLOGY POSITION
Positions
GPR 1.00
Governor: Modify provisions related to the hazardous pollution prevention program that is jointly conducted by Commerce, DNR and the UW-Extension Solid and Hazardous Waste Center as follows:
a. Provide 1.0 GPR position and reallocate $75,000 GPR annually for a position to provide services to Wisconsin firms in the emerging science and technology fields. The funding would be reallocated to economic and community development from the appropriation used to fund the hazardous pollution prevention contract with the UW Solid and Hazardous Waste Center. As a result, there would be no funding provided for the contract. The position would be an economic development consultant who would work with start-up businesses on issues, such as developing business and marketing plans and identifying the requirements of private investors and venture capitalists, that would affect the businesses' ability to access financing. The position would also work with WHEDA and a biotechnology corporation established by WHEDA to establish a statewide biotechnology development initiative.
b. Specify that the UW Board of Regents is required to maintain a solid and hazardous waste center in the UW-Extension.
c. Expand the program to promote pollution prevention, rather than hazardous pollution prevention. Pollution prevention would be defined to mean an action that does any of the following: (1) prevents waste from being created; (2) reduces the amount of waste that is created; and (3) changes the nature of waste being created in a way that reduces the hazards to public health or the environment posed by the waste. Pollution prevention would not include incineration, recycling or treatment of a waste, changes in the manner of disposal of a waste, or any practice that changes the characteristics or volume of a waste if the practice is not part of the process that produces a product or provides a service.
d. Statutory definitions of hazardous waste and hazardous waste program that apply to the program would be repealed.
e. The expanded pollution prevention program would be required to promote techniques for pollution prevention by reducing energy use and training employes to minimize waste in addition to current law prevention techniques.
f. The related duties of DNR would be expanded to involve pollution prevention rather than hazardous pollution prevention.
g. The provisions which govern the Department of Commerce's contract with the Solid and Hazardous Waste Center would be modified to reflect the expansion of the program to promote pollution prevention rather than only hazardous waste pollution prevention. For example, provisions related to determining costs, processes and identifying prevention options would apply to solid waste and pollution in addition to hazardous pollution.
Currently, under this program, Commerce, the Department of Natural Resources and the Hazardous Pollution Prevention Council conduct and coordinate an educational, environmental management and technical assistance program to promote hazardous pollution prevention among businesses in the state. In addition, $75,000 GPR annually is currently provided for Commerce to contract with the UW-Extension Solid and Hazardous Waste Center for assessment services.
[Bill Sections: 891, 2670 thru 2680 and 2965 thru 2973]
22. BUSINESS DEVELOPMENT ASSISTANCE CENTER AND ENTREPRENEURIAL ASSISTANCE ANNUAL REPORTS
Governor: Require that beginning on October 1, 2001, and no later than October 1 of each odd-numbered year thereafter, the Department must submit to the Governor and chief clerk of each house of the Legislature as a combined report, the Business Development Assistance Center and entrepreneurial assistance report. The Business Development Assistance Center report would not have to include recommendations concerning consolidated permit applications. The entrepreneurial assistance report would no longer have to include an evaluation of the effectiveness of entrepreneurial and intermediary assistance programs offered by the state.
Currently, the Business Development Assistance center report is due each April 1 and is required to include recommendations for improving the permitting processes of state agencies. The entrepreneurial assistance report is due January 1 of each odd-numbered year and must include a description and evaluation of the state's entrepreneurial and intermediary assistance programs.
[Bill Sections: 2980 thru 2983]
23. DELETE OBSOLETE APPROPRIATIONS
Governor: Delete the SEG appropriations for technology and pollution control and abatement grants and loans that were funded with segregated revenues from the recycling fund and environmental fund. The program was sunset on June 30, 1997.
[Bill Sections: 213, 214 and 2994]
24. INDUSTRIAL REVENUE BONDS -- ESTIMATE OF ATTORNEYS FEES
Governor: Eliminate the requirement that a municipality may not issue industrial revenue bonds unless a document that provides a good faith estimate of attorney fees which will be paid from the bond proceeds is filed with Commerce and the clerk of the municipality prior to adoption of an initial resolution to issue the bonds.
[Bill Section: 1638]
25. ELIMINATE REPORTING REQUIREMENTS
