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
Governor: Eliminate requirements for Commerce to provide the following reports or information:
a. An annual report indicating the net gain in jobs due to state funding provided to Forward Wisconsin. Beginning on or before September 1, 2000, and annually thereafter, Forward Wisconsin would be required to submit the report to the appropriate standing committees of the legislature.
b. A biennial report to the state investment board describing the types of investments in businesses in the state that would have the greatest impact on economic development in the state. The Investment Board, after consulting with Commerce, would continue to prepare this investment plan for the Governor and Legislature.
c. A requirement that the Department, in cooperation with the UW small business development center, UW center for cooperatives, the technical college system board and the UW-extension, collect and disseminate information regarding employe-owned businesses and to promote such businesses.
d. A biennial report on the social, economic and financial effects of tax increment financing projects. Beginning with the 2001-03 biennium DOR would be required to produce this report.
e. A requirement that Commerce must certify that a WHEDA loan conforms with statutory requirements before that loan can be made. Also, the Department would no longer have to produce an annual report addressing the effects of WHEDA loans. WHEDA would be required to prepare this report, beginning on or before July 1, 2000.
f. A publication listing state aid programs and services for communities.
[Bill Sections: 70, 71, 699, 700, 890, 1631, 1799, 2378, 2379, 2929 and 2934 thru 2936]
Building and Environmental Regulation
1. RECYCLING MARKET DEVELOPMENT PROGRAM
Funding Positions
PR-REV $379,200
SEG-REV - $379,200
SEG - $5,332,200 - 2.00
Governor: Delete $2,666,100 SEG and 2.0 SEG positions annually from the recycling fund related to the Recycling Market Development Board (RMDB). The RMDB is responsible for promoting the development of markets for recovered materials and maximizing the marketability of these materials, including providing financial assistance in the form of grants, loans or manufacturing rebates and entering into contracts to carry out the duties of the Board. Currently, the RMDB is repealed effective June 30, 2001 and after that date, Commerce may promulgate rules for awarding financial assistance for the development of markets for materials recovered from solid waste. The changes include the following components.
a. Delete $2,500,000 annually for RMDB financial assistance and repeal the appropriation in order to eliminate use of the recycling fund for this purpose. Beginning on the effective date of the 1999-01 biennial budget act, funding for RMDB financial assistance and contracts would be estimated at $1,500,000 PR annually and would be derived solely from repayments of prior loans made by the Board and repayments of recycling market development loans made by the former Department of Development (DOD) before July 1, 1995.
b. Delete $166,100 and 2.0 positions annually for RMDB administration. The bill would retain $180,300 annually with 2.0 project positions which expire June 30, 2001, including the executive director.
c. Specify that loan repayments from the former DOD recycling market development loan programs (which ended June 30, 1995) be deposited in the RMDB loan repayments appropriation instead of currently being deposited in the recycling fund. Commerce estimates that loan repayments under the former DOD recycling loan programs will total $202,200 in 1999-00 and $177,000 in 2000-01. This would result in an increase in program revenues of $379,200 and a corresponding decrease of segregated recycling fund revenues during the 1999-01 biennium.
d. Until June 30, 2001, authorize the RMDB to use the PR loan repayments appropriation for contracts with persons to carry out the duties of the Board, in addition to using the appropriation for financial assistance. Currently, the RMDB may use only the SEG financial assistance appropriation for contracts.
[Bill Sections: 210, 211, 215, 2565 thru 2567, 3021 and 9410(8)]
2. PECFA -- REVENUE OBLIGATIONS
BR $450,000,000
Governor: Authorize the Building Commission to issue revenue obligations (typically long-term bonds or short-term notes), to be paid from petroleum inspection fees, to fund the payment of claims under the Petroleum Environmental Cleanup Fund Award (PECFA) program. Revenue obligations could not exceed $450 million in principal amount. The Building Commission would also be authorized to issue revenue obligations to fund or refund outstanding revenue obligations, to pay issuance or administrative expenses, to make deposits to reserve funds or to pay accrued or capitalized interest. Commerce would be authorized to enter into agreements with the federal government, local governments, individuals or private entities to insure or provide additional security for the revenue obligations issued under the bill.
The PECFA revenue obligations would be created as a special fund established in the state treasury or in an account maintained by a trustee. Under the bill, the Legislature would find that a nexus exists between the PECFA program and the petroleum inspection fund in that fees imposed on users of petroleum are used to remedy environmental damage caused by petroleum storage. The bill also contains a moral obligation pledge whereby the Legislature would express its expectation and aspiration that, if the Legislature reduces the rate of the petroleum inspection fee and if the funds in the petroleum inspection fund are insufficient to pay the principal and interest on the revenue obligations, the Legislature would make an appropriation from the general fund sufficient to pay the principal and interest on the revenue obligations.
The bill would create a sum sufficient appropriation from the petroleum inspection fund not to exceed the net proceeds of revenue obligations for payment of PECFA awards. In addition, the bill would expand the use of the existing PECFA awards appropriation to include any amount used to reduce the amount of principal of outstanding revenue obligations. Finally, the bill would create three appropriations for use if the obligations are established as a fund in the state treasury, which would include appropriations for: (a) deposit in the special fund in the state treasury of proceeds of revenue obligations to provide for reserves and for expenses of issuance and management of the revenue obligations, with the remainder transferred to the petroleum inspection fund for use for PECFA awards; (b) payment from the petroleum inspection fund of a sum sufficient to retire revenue obligations to repay the fund in the state treasury; and (c) payment from the special fund in the state treasury to retire revenue
