SB393: Bill Text

1999 - 2000 LEGISLATURE

1999 Senate BILL 393

February 16, 2000 - Introduced by Joint Legislative Council. Referred to Economic Development, Housing and Government Operations.

SB393,2,18 An Act to repeal 15.155 (4), 20.143 (1) (cb), 560.033, 560.037, 560.038 and 560.039, 560.045 (2), 560.06, 560.14 (1) (a), (ar), (b), (fm), (g) and (h), 560.14 (2), 560.14 (3), 560.14 (3m) and (3r), 560.14 (4), 560.14 (4m), 560.14 (5), 560.145, 560.147, 560.16 (title) and (1) (intro.), (a) and (b), 560.16 (1) (g) and (h), 560.16 (2), (3), (4) and (6), 560.167, 560.17 (1) (a), (am), (bm) and (c), 560.17 (2), 560.17 (3), 560.17 (4), 560.17 (4m), 560.17 (5), 560.17 (5c) and (5m), 560.17 (5r), 560.17 (6), 560.17 (6m), 560.17 (6r), 560.17 (7), 560.175, 560.20 (1) (title), (cf) and (cm), 560.20 (1) (f), 560.20 (1) (g), 560.20 (1m), 560.20 (2), 560.20 (3) (title), 560.20 (3) (a), 560.20 (3) (b) and (c), 560.20 (3) (cm), 560.20 (3) (d) and (e), 560.20 (3) (f) 1. to 3., 560.25, 560.26, 560.60 (1m), (1s) and (1v), 560.60 (4), 560.60 (6), 560.60 (10), 560.60 (15), (17) and (18m), 560.602, 560.605, 560.607 (2), 560.61, 560.62, 560.63, 560.65 (title), (1), (1m), (2) and (3), 560.65 (4), 560.65 (5) (a), 560.66, 560.68 (title) and (2), 560.68 (4), (5), (5m), (6) and (7) and 560.685; to renumber 560.16 (1) (c), (e) and (f); to renumber and amend 560.045 (1), 560.20 (3) (g) and (h), 560.65 (5) (b) and 560.68 (3); to consolidate, renumber and amend 560.20 (3) (f) (intro.) and 4.; to amend 20.143 (1) (c), 20.143 (1) (fg), 20.143 (1) (fm), 20.143 (1) (gm), 20.143 (1) (ie), 20.143 (1) (im), 20.143 (1) (in), 38.04 (4) (ag), 66.407 (2) (c) 3., 66.431 (2m) (d) 8., 84.185 (1) (b), 84.185 (1) (ce), 234.01 (4n) (a) 3m. e., 292.11 (7) (d) 1m. b., 292.255, 560.03 (intro.), 560.03 (18), 560.135 (5) (a), 560.135 (5) (b), 560.135 (7), 560.15 (2) (d), 560.607 (1), subchapter VII (title) of chapter 560 [precedes 560.80], 560.84 (1) (intro.) and 560.85 (1); to repeal and recreate 66.407 (2) (a) 2., 66.431 (2m) (t), 560.01 (2) (a) and 560.137 (1) (b); and to create 1.14, 20.143 (1) (ih), 560.03 (24), 560.14 (2c), 560.14 (3c), 560.14 (4c), 560.14 (5c), 560.14 (6), 560.168, 560.17 (1) (cm), 560.17 (2c), 560.17 (3c), 560.17 (4c), 560.17 (5b), 560.17 (6c), 560.20 (2c), 560.20 (3m), (4) and (5), 560.64, 560.815, 560.82 (6), 560.83 (6) and 560.837 (3) of the statutes; relating to: establishing state economic development goals, directing the department of commerce to establish a state economic development policy, consolidating and revising various economic development financial assistance programs administered by the department of commerce, modifying the department of commerce's export plan, creating a sister state program, granting rule-making authority and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill is explained in the Notes provided by the joint legislative council in the bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Prefatory note: This bill was prepared for the joint legislative council's special committee on state strategies for economic development. The bill does the following:

1. Creates statewide economic goals based on the goals in the committee's mission statement and directs all executive branch agencies, including the department of commerce (the department), and state authorities to consider these goals when implementing a statutory prescribed power or duty and to implement the power or duty in a manner that contributes to the expeditious attainment of the goals.

2. Replaces the department's duty to develop a state economic policy and implement 11 specific types of economic development activities with the general duty to develop and provide leadership in implementing a state economic development policy that is designed, to the extent practicable, to assist the state in achieving all of the statewide economic development goals.

3. Directs the department to develop and implement economic development programs consistent with the state economic development policy that it develops under the bill and to submit annual reports, starting no later than September 1, 2002, to the governor and the legislature on the progress in implementing the policy.

4. Simplifies economic development financial assistance programs and provides the department more flexibility in implementing these programs by replacing 41 statutorily specified economic development grant or loan programs (based on the power or duty to award financial assistance) funded under 6 appropriations to the department with one grant or loan program for each appropriation, as described below.

5. Establishes that the department's current export plan must apply to countries in all inhabited continents.

6. Directs the department to create a sister state program under which the secretary of commerce may enter into a sister state affiliation on behalf of the state.

The bill modifies the economic development financial assistance programs funded under 6 appropriations to the department, including community-based economic development programs, small cities community development block grants (CDBG), rural economic development programs, the business development initiative, Wisconsin development fund programs and minority business projects, in the following ways:

1. For each of these appropriations, other than the federally funded CDBG, the bill consolidates all of the statutory grant or loan programs funded by the appropriation into one grant or loan program. The CDBG programs are not consolidated, as the current statute, s. 560.045, does not prescribe specific assistance programs to be funded by CDBG funds.

2. The purpose of the assistance provided by the programs funded by each of the 6 appropriations must be to contribute to the implementation of the department's economic development policy.

3. Statutory specification of the types of projects eligible for funding, funding priorities and criteria, and conditions placed on the assistance is replaced with delegation of these items to the department.

The bill does not change, in its treatment of these programs, the amount of appropriations, the general type of project eligible for funding, the authorized positions to administer the program or who is eligible to receive assistance under the program for each appropriation. As a result of this treatment, if the department determines that a current program's design contributes to implementing its state economic development policy, the department could continue the program in its present form.

In general, the bill takes effect on January 1, 2001, except that the modification of the export plan and the creation of the sister state program take effect on the day after publication.

SB393, s. 1 Section 1. 1.14 of the statutes is created to read:

SB393,4,5 1.14 State economic development policy. (1) Definition. In this section, "state agency" means an office, department, agency or other body in state government that is created or authorized to be created by the constitution or any law and that is entitled to expend moneys appropriated by law, including an authority created under ch. 231, 233 or 234, but not including the legislature or the courts.

SB393,4,7 (2) Economic development goals. All of the following are economic development goals of the state:

SB393,4,8 (a) To have the most highly skilled professional and technical work force.

SB393,4,9 (b) To have the best system of encouraging entrepreneurial ventures.

SB393,4,11 (c) To have a tax, regulatory and financial climate that is conducive to a healthy statewide economy and that is competitive in the global economy.

SB393,4,15 (3) Agency duty. Each state agency, in exercising a power or duty vested in the state agency by statute shall, to the extent practicable, consider the goals set out in sub. (2) and implement the power or duty in a manner that contributes to the expeditious attainment of those goals.

Note: This Section specifies state goals for economic development and directs executive branch state agencies and state authorities to consider them in implementing their statutorily prescribed powers and duties. These goals are based on the committee's mission statement. The goals are also referenced in the purpose of the department's economic development policy established under this bill. [See the treatment of s. 560.01 (2) (a).]

SB393, s. 2 Section 2. 15.155 (4) of the statutes is repealed.

Note: This Section repeals the rural economic development board, as the program under which financial assistance is awarded by this board is repealed in the bill as part of the consolidation of financial assistance programs by the bill. The minority business development board and the development finance board are not repealed, since the bill does not affect the minority business recycling development grants and loans program under existing s. 560.835 or the mining economic development grants and loans program under existing s. 560.135.

SB393, s. 3 Section 3. 20.143 (1) (c) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB393,5,13 20.143 (1) (c) Wisconsin development fund; grants, loans, reimbursements and assistance. Biennially, the amounts in the schedule for grants under ss. 560.145, 560.16, 560.175, 560.26; for grants and loans under ss. 560.62, 560.63 and 560.66 s. 560.64; for loans under s. 560.147; for reimbursements under s. 560.167; for providing assistance under s. 560.06; for the costs specified in s. 560.607; for the loan under 1999 Wisconsin Act 9, section 9110 (4); and for the grants under 1995 Wisconsin Act 27, section 9116 (7gg), 1995 Wisconsin Act 119, section 2 (1), 1997 Wisconsin Act 27, section 9110 (6g), and grant under 1999 Wisconsin Act 9, section 9110 (5). Of the amounts in the schedule, $50,000 shall be allocated in each of fiscal years 1997-98 and 1998-99 for providing the assistance under s. 560.06 (1). Notwithstanding s. 560.607, of the amounts in the schedule, $125,000 shall be allocated in each of 4 consecutive fiscal years, beginning with fiscal year 1998-99, for grants and loans under s. 560.62 (1) (a).

SB393, s. 4 Section 4. 20.143 (1) (cb) of the statutes is repealed.

SB393, s. 5 Section 5. 20.143 (1) (fg) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB393,5,20 20.143 (1) (fg) Community-based economic development programs. The amounts in the schedule for grants and loans under ss. 560.037 and s. 560.14 and for the grants under 1993 Wisconsin Act 16, section 9115 (1c) and 1999 Wisconsin Act 9, section 9110 (6e) and (7v).

SB393, s. 6 Section 6. 20.143 (1) (fm) of the statutes is amended to read:

SB393,5,25 20.143 (1) (fm) Minority business projects; grants and loans. Biennially, the amounts in the schedule for grants under ss. 560.033, 560.038, 560.039, 560.82 and 560.837, and grants and loans under s. ss. 560.83, the grant under 1993 Wisconsin Act 110, section 3, and the loans under 1997 Wisconsin Act 9, section 3 and 560.815.

SB393, s. 7 Section 7. 20.143 (1) (gm) of the statutes is amended to read:

SB393,6,5 20.143 (1) (gm) Wisconsin development fund, administration of grants and loans. All moneys received from origination fees under s. 560.68 (3) 560.64 (4) for administering the programs under subch. V of ch. 560 and for the costs of underwriting grants and loans awarded under subch. V of ch. 560.

SB393, s. 8 Section 8. 20.143 (1) (ie) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB393,6,18 20.143 (1) (ie) Wisconsin development fund, repayments. All moneys received in repayment of grants or loans under s. 560.085 (4) (b), 1985 stats., s. 560.147, 1997 stats., s. 560.16, 1995 stats., s. 560.165, 1993 stats., subch. V of ch. 560, 1997 stats., except for s. 560.65, 1997 stats., s. 560.64, 1989 Wisconsin Act 336, section 3015 (1m), 1989 Wisconsin Act 336, section 3015 (2m), 1989 Wisconsin Act 336, section 3015 (3gx), 1997 Wisconsin Act 27, section 9110 (7f), 1997 Wisconsin Act 310, section 2 (2d), and 1999 Wisconsin Act 9, section 9110 (4), to be used for grants and loans under subch. V of ch. 560 except s. 560.65, for loans under s. 560.147, for grants under ss. 560.16, 560.175 and 560.25, for assistance under s. 560.06 (2), s. 560.64 and for the loan under 1999 Wisconsin Act 9, section 9110 (4), and for reimbursements under s. 560.167.

SB393, s. 9 Section 9. 20.143 (1) (ih) of the statutes is created to read:

SB393,6,22 20.143 (1) (ih) Community-based economic development loan repayments. All moneys received in repayment of loans under s. 560.14, to be used for grants and loans under s. 560.14.

SB393, s. 10 Section 10. 20.143 (1) (im) of the statutes is amended to read:

SB393,7,3 20.143 (1) (im) Minority business projects; repayments. All moneys received in repayment of grants or loans under s. ss. 560.815 and 560.83 and loans under 1997 Wisconsin Act 9, section 3, to be used for grants and loans under ss. 560.82, 560.83 and 560.837, the grant under 1993 Wisconsin Act 110, section 3, and the loans under 1997 Wisconsin Act 9, section 3 s. 560.815.

SB393, s. 11 Section 11. 20.143 (1) (in) of the statutes is amended to read:

SB393,7,10 20.143 (1) (in) Business development initiative loan repayments. All moneys received in repayment of loans under s. 560.20 (3), any proceeds from equity investments made by the community development finance company under s. 234.965, 1991 stats., and any unencumbered grant funds returned to the department under 1993 Wisconsin Act 437, section 9115 (1t), to be used for loans and grants under s. 560.20 (3).

SB393, s. 12 Section 12. 38.04 (4) (ag) of the statutes is amended to read:

SB393,7,14 38.04 (4) (ag) A program approved by the development finance board department of commerce under subch. IV of ch. 560 is exempt from board approval under par. (a).

SB393, s. 13 Section 13. 66.407 (2) (a) 2. of the statutes is repealed and recreated to read:

SB393,7,17 66.407 (2) (a) 2. "Technology-based incubator" means a facility that provides a new or expanding technically oriented business with all of the following:

SB393,7,18 a. Office and laboratory space.

SB393,7,19 b. Shared clerical and other support service.

SB393,7,20 c. Managerial and technical assistance.

SB393, s. 14 Section 14. 66.407 (2) (c) 3. of the statutes is amended to read:

SB393,7,24 66.407 (2) (c) 3. Apply for a grant under s. 560.14 (3) in connection with a technology-based incubator if the department of commerce provides grants for projects or activities related to technology-based incubators under s. 560.14.

SB393, s. 15 Section 15. 66.431 (2m) (d) 8. of the statutes is amended to read:

SB393,8,5 66.431 (2m) (d) 8. Studying the feasibility of an initial design for a technology-based incubator, developing and operating a technology-based incubator and, if the department of commerce provides grants for projects or activities related to technology-based incubators under s. 560.14, applying for a grant under s. 560.14 (3) in connection with a technology-based incubator.

SB393, s. 16 Section 16. 66.431 (2m) (t) of the statutes is repealed and recreated to read:

SB393,8,8 66.431 (2m) (t) "Technology-based incubator" means a facility that provides a new or expanding technically oriented business with all of the following:

SB393,8,9 1. Office and laboratory space.

SB393,8,10 2. Shared clerical and other support service.

SB393,8,11 3. Managerial and technical assistance.

SB393, s. 17 Section 17. 84.185 (1) (b) of the statutes is amended to read:

SB393,8,15 84.185 (1) (b) "Governing body" has the meaning specified in s. 560.60 (6) means a county board, city council, village board, town board, regional planning commission or transit commission under s. 59.58 (2) or 66.943.

SB393, s. 18 Section 18. 84.185 (1) (ce) of the statutes is amended to read:

SB393,8,20 84.185 (1) (ce) "Job" has the meaning specified in s. 560.60 (10) means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays. "Job" does not include initial training before an employment position begins.

SB393, s. 19 Section 19. 234.01 (4n) (a) 3m. e. of the statutes is amended to read:

SB393,8,24 234.01 (4n) (a) 3m. e. The facility is located in a targeted area, as determined by the authority after considering the factors set out in s. 560.605 (2m) (a) to (h), 1997 stats.

SB393, s. 20 Section 20. 292.11 (7) (d) 1m. b. of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

SB393,9,6 292.11 (7) (d) 1m. b. An area designated by the local governmental unit if the area consists of 2 or more properties affected by a contiguous region of groundwater contamination or contains 2 or more properties that are brownfields, as defined in s. 560.60 (1v) 560.13 (1) (a).

SB393, s. 21 Section 21. 292.255 of the statutes, as created by 1999 Wisconsin Act 9, is amended to read:

SB393,9,13 292.255 Report on brownfield efforts. The department of natural resources, the department of administration, the department of commerce shall submit a report evaluating the effectiveness of this state's efforts to remedy the contamination of, and to redevelop, brownfields, as defined in s. 560.60 (1v) 560.13 (1) (a).

SB393, s. 22 Section 22. 560.01 (2) (a) of the statutes is repealed and recreated to read:

SB393,9,20 560.01 (2) (a) State economic development policy. The department shall develop, and provide leadership in implementing, a state economic development policy that is designed, to the extent practicable, to assist the state in achieving all of the goals set out in s. 1.14 (2). The policy shall foster, encourage and advocate public and private economic development programs that are designed to achieve those goals.

Note: This Section replaces the current directive to the department to develop a state economic policy with 11 specified components with a directive to develop and implement a state economic development policy that is designed to achieve all of the economic development goals created by this bill.

SB393, s. 23 Section 23. 560.03 (intro.) of the statutes is amended to read:

SB393,9,23 560.03 Business and industrial development. (intro.) The department shall foster, encourage and advocate develop and implement economic development programs designed to broaden and strengthen the economy of the state, and it shall provide specific leadership in the following instances among others that are consistent with the economic development policy developed under s. 560.01 (2) (a). To further this goal, the department shall do at least all of the following:

Note: This Section coordinates the department's 21 specific responsibilities on business and industrial development with its state economic development policy established under this bill.

SB393, s. 24 Section 24. 560.03 (18) of the statutes is amended to read:

SB393,11,2 560.03 (18) Develop and implement a plan to promote and increase exports from this state, including agricultural products, and to other countries in Africa, Asia, Australia, Europe, North America and South America and to promote and increase foreign investment in this state by businesses in those other countries. The plan shall provide for the secretary to take a leadership role in assuring collaboration and coordination among international trade activities conducted by governmental entities to assure efficiency and to avoid duplication and may include provisions for participation in trade fairs and missions, establishment and maintenance of foreign trade offices and preparation of research on foreign markets for exports from this state and on opportunities for foreign investment in this state. The plan shall describe the allocation of funds for support staff in this state to implement the plan and for all other costs in implementing each provision of the plan. In developing and implementing the plan, the department shall consult with the department of agriculture, trade and consumer protection, the University of Wisconsin System, the technical college system and other public and private agencies and institutions supporting international trade education or activities. Any plan to establish a foreign trade office shall include the feasibility of establishing a system of graduated fees which a trade office may use to offset its operating costs, or a system of commissions for execution of successful transactions, or both.

Note: This section clarifies the department's export plan to specify that the plan must address increasing exports to and foreign investments in the state by businesses in other countries in all of the inhabited continents.

SB393, s. 25 Section 25. 560.03 (24) of the statutes is created to read: