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.
[Act 9 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.
Assembly: Delete the Joint Finance provision that would authorize Commerce to make a grant of $100,000 in 1999-00 for pedestrian enhancements in the City of Menasha from the Wisconsin Development Fund and instead authorize the Department to make the grant from the Community-Based Economic Development program (CBED) (see Commerce, Departmentwide and Economic Development #8).
Senate: Require Commerce to provide $25,000 in each year of the biennium to CAP Services, Inc. from the Community-Based Economic Development (CBED) program. Within six months after spending the full amount of each grant, CAP Services, Inc., would be required to submit a report to Commerce detailing how the grant proceeds were used. Prior to 1999 CAP services received an annual CBED grant of $25,000. In 1999 the grant was $12,500. This provision would require the Department to increase the grant to CAP services back to the 1998 amount. CAP Services, Inc. provides technical assistance to small businesses.
Conference Committee/Legislature: Include both the Assembly and Senate provisions.
Veto by Governor [B-23]: Limit the $25,000 grant to CAP services to fiscal year 1999-2000.
[Act 9 Sections: 202g, 2954, 2955 and 9110(6c)&(7v)]
[Act 9 Vetoed Section: 9110(7v)]
19. MINORITY BUSINESS DEVELOPMENT FINANCE PROGRAM -- ELIGIBILITY OF LOCAL DEVELOPMENT CORPORATIONS [LFB Paper 289]
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.
Joint Finance/Legislature: Include provision and, in addition, decrease the MBDF GPR appropriation by $100,000 annually and increase annual expenditure authority for the repayments appropriation by $100,000 PR. As a result, total annual funding for the MDBF would be $329,200 GPR and $267,200 PR.
[Act 9 Sections: 3015 thru 3020]
20. BUSINESS DEVELOPMENT INITIATIVE PROGRAM MODIFICATIONS
Governor/Legislature: 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.
[Act 9 Sections: 2974 thru 2978]
21. HAZARDOUS POLLUTION PREVENTION PROGRAM MODIFICATIONS AND BIOTECHNOLOGY POSITION [LFB Paper 290]
Positions
GPR 1.00
Governor/Legislature: 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.
[Act 9 Sections: 891, 2670 thru 2680 and 2965 thru 2973]
22. DELETE OBSOLETE APPROPRIATIONS
Governor/Legislature: 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.
[Act 9 Sections: 213 and 214]
23. RURAL ECONOMIC DEVELOPMENT (RED) PROGRAM [LFB Paper 289]
GPR - $100,000
PR 100,000
Total $0
Joint Finance/Legislature: Decrease the RED, GPR appropriation by $50,000 annually and increase annual expenditure authority for the repayments appropriation by $50,000 PR. As a result, total annual funding for the RED would be $656,500 GPR and $120,100 PR. In addition, a RED program would be created that would provide loans of up to $50,000 to businesses if all of the following applied:
a. The business, together with any affiliate, subsidiary or parent entity, has fewer than 50 employes;
b. The business is or will be located in a rural municipality;
c. The rural municipality in which the business is or will be located (1) is in a county that has a median household income lower than the state median household income or (2) if county median household income is higher than the state median, has median household income that is lower than the county's;
d. The business is starting or expanding its operations;
e. The operations of the business do not involve metallic mining activities;
f. The owner of the business attends a class that provides instruction in writing a business plan, making a loan application and managing a start-up business.
A business that applies for a loan would be required to submit an application package that includes a business plan and such personal and business financial information that the Rural Economic Development Board (Board) requires to be able to assess the potential viability of the business. Commerce would be required to assist in preparing applications.
A business could use the loan proceeds for the following purposes:
a. The purchase or improvement of land.
b. The purchase of buildings, furniture, fixtures, machinery, equipment or inventory.
c. Job training costs.
d. Employe relocation costs;
e. Working capital.
In cases where loans are provided for employe relocation costs, Commerce would ensure that an employe had the option of accepting or declining any relocation assistance and the compensation and benefit terms offered at the new location are at least as favorable as those offered by the business at its previous location. The Rural Economic Development Board would be required to determine whether, and the extent to which, a business must contribute a match up to a maximum of 20% of project cost. Cash or in-kind contributions would be permitted, with the services or materials that constitute in-kind contributions determined by the Board. The Board would be required to act on an application and advise the applicant of its decision within 45 days after Commerce determines the application was complete.
[Act 9 Sections: 2955m, 2955p, 2955q and 2955r]
24. ECONOMIC DEVELOPMENT AUDIT
Joint Finance/Legislature: Request the Joint Audit Committee to consider directing the Legislative Audit Bureau to conduct an audit that would determine whether state government:
a. Has a comprehensive economic development strategy that enables the state to compete effectively;
b. Has a comprehensive state development budget that accounts for development-related expenditures by various state agencies, and plans adequately for future development investments;
c. Is using both tax policy and performance-based incentives to foster and improve future competition and economic growth;
d. Has existing incentive programs that complement the state's overall development goals;
e. Clearly defines strategic economic development goals for the state's development finance programs, and manages and monitors the programs on that basis;