Under current law, general purpose revenue is appropriated to the department
of commerce for economic development for American Indians. This bill changes the
source of the funding to Indian gaming receipts.
The Wisconsin Housing and Economic Development Authority (WHEDA)
administers a number of loan guarantee programs. Under the small business
development loan guarantee program, WHEDA may guarantee up to 80% or
$200,000, whichever is less, of the principal of a loan made by a private lending
institution to a business that employs 50 or fewer full-time employes (small
business), or to the elected governing body of a federally recognized American Indian
tribe or band in this state, for certain business development projects. The total
outstanding guaranteed principal amount of all loans that WHEDA may guarantee
under the program is $9,900,000.
This bill adds a new type of eligible borrower to the program: a small business
that is located in the same county as a casino that is operated by a federally
recognized American Indian tribe or band or in a county that is adjacent to such a
county. For such a loan, WHEDA may guarantee up to 100% or $200,000, whichever
is less, of the loan principal. In addition, for such a loan WHEDA annually may pay
to the financial institution that made the loan up to 3.5% of the outstanding balance
of the loan as an interest subsidy. The bill increases the total outstanding
guaranteed principal amount of all loans that WHEDA may guarantee under the
program from $9,900,000 to $21,150,000. The bill also authorizes WHEDA to use
Indian gaming receipts for guarantees and interest subsidies for loans made to
businesses located in the same counties as American Indian casinos or in counties
adjacent to those counties.
Currently, under the physician loan assistance and health care provider loan
assistance programs, the department of commerce may repay up to a specified
amount in educational loans on behalf of a physician, physician's assistant,
nurse-midwife or nurse practitioner who agrees to practice at least 32 clinic hours
per week for three years in one or more eligible practice areas, defined generally as
areas in this state with shortages of certain types of health care providers. The loan
repayments are funded from general purpose revenue. This bill changes the funding
source to Indian gaming revenue.
This bill appropriates Indian gaming receipts to the department of tourism for
tourism marketing expenditures and for providing funds to nonprofit organizations
for the joint effort marketing of tourism in the state.
This bill authorizes WHEDA to organize and maintain a nonstock, nonprofit
corporation for the purpose of investing in biotechnology companies in this state.
Biotechnology is defined as technology related to life sciences. General purpose
revenue is provided to the corporation for start-up capital and for its reasonable
administrative expenses. WHEDA must provide administrative services to the
corporation by assigning its own employes or by contracting with private or state
agencies to provide the services.
The corporation may invest in a biotechnology company by purchasing capital
participation instruments, such as capital stock, partnership or membership
interests, evidences of indebtedness and royalties, in a commercial, industrial or
other economic enterprise undertaken by the biotechnology company. The
corporation may not purchase more than 49% of the voting stock in any such
enterprise and may not invest more than $200,000 in any one biotechnology
company.
The board of directors of the corporation includes the executive director of
WHEDA, the secretary of commerce, the secretary of administration, the executive
director of the investment board, the president of the University of Wisconsin System
and the president of Forward Wisconsin, Inc., or the designee of any of them, and
three other members who are initially appointed by the governor and who must
include representatives of the state's biotechnology research community,
biotechnology industry and venture capital industry.
This bill authorizes the department of commerce to award a grant of not more
than $1,000,000 to a consortium of business, governmental and educational entities
in the Racine-Kenosha area for a manufacturing technology training center. The
consortium must submit a business plan to the department, and the secretary of
commerce must approve the plan before the grant may be made. The department
and the consortium must enter into a written agreement concerning the use of the
grant proceeds, and the consortium must submit a report to the department on the
use of the grant proceeds within six months after spending the proceeds.
This bill authorizes the department of commerce to make a loan of not more
than $600,000 to a person for a project that includes a pedestrian bridge. In order
to receive the loan, the person must submit a project plan and the plan must be
approved by the secretary of commerce. The person must enter into a written
agreement with the department related to the use of the loan proceeds, and must
agree to report to the department on the use of the loan proceeds after the proceeds
are spent.
This bill eliminates the manufacturing assistance grants program, under
which the development finance board awards grants to fund a management
assessment and plan, to provide customized training for employes of a business
supplying a manufacturing business and to provide support for a manufacturing
extension center technology transfer program. Grants may not total more than
$750,000 in a fiscal biennium and are funded with general purpose revenue from the
Wisconsin development fund and with repayments from grants and loans made from
the Wisconsin development fund.
This bill authorizes the department of commerce to award a grant to a
technology-based nonprofit organization to provide support for a manufacturing
extension center. Grants awarded under the program may not exceed $1,000,000 in
a fiscal year and are funded solely with repayments of grants and loans made from
the Wisconsin development fund.
This bill authorizes the department of commerce to award grants for costs
associated with the start-up or expansion of a business that is or will be located in
a city, village or town that has a population of more than 6,000 or that is located in
a county with a population density of 150 or more persons per square mile. The
department may not award more than $15,000 to any one person in a fiscal biennium,
and may not award more than $250,000 under the program in a fiscal biennium. A
person may not receive a grant unless the person submits to the department a
comprehensive informational application and contributes at least 25% of the cost of
the project.
Currently, if the department of commerce designates an area as a development
zone, a development opportunity zone or an enterprise development zone, a person
or corporation that conducts or that intends to conduct economic activity in the
designated zone may be eligible for certain tax credits, called development zones
credits, based on the creation or retention of jobs and on expenses incurred to
remediate environmental problems.
This bill eliminates the requirement that the department obtain the approval
of the joint committee on finance to designate more than 50 enterprise development
zones and increases the number of enterprise development zones that the
department may designate to 100. The bill increases the amount in tax credits that
the department must allow a person to claim for creating or retaining a job in a
development zone or in an enterprise development zone. The bill increases to
$300,000,000 the total amount of tax credits that may be claimed under the
development zone and enterprise development zone programs together. Under
current law, the amount of tax credits that may be claimed under the development
zone program is $33,155,000 and the amount that may be claimed under the
enterprise development zone program is not specified. Finally, the bill authorizes the
department to designate enterprise development zones for projects that will likely
provide for significant environmental remediation. Under current law, the
department may designate an enterprise development zone only for a project that is
likely to retain or increase employment in the state and that will likely have a
positive effect on an area that meets at least three criteria relating generally to
economic circumstances. Of the 100 enterprise development zones that the
department may designate under the bill, the department must designate at least
ten for projects for environmental remediation.
Currently, the department of commerce awards grants to persons for the
redevelopment of brownfields and associated environmental remediation activities.
Brownfields are abandoned, idle or underused industrial or commercial facilities or
sites that are adversely affected for expansion or redevelopment by actual or
perceived environmental contamination. Grants are paid from general purpose
revenue and from the environmental fund.
This bill adds another type of grant to the program based on the creation or
retention of jobs. Under the bill, any person eligible for a grant under the current
program is eligible for the new type of grant if, in addition to satisfying the criteria
under current law, the grant applicant creates or retains jobs with the grant
proceeds. At least 80% of the jobs created or retained must be filled by individuals
who are parents of minor children and who have family incomes that do not exceed
200% of the federal poverty line. The new grants are paid from the federal temporary
assistance for needy families block grant moneys. The current requirement that the
department must award at least seven grants under the program for projects that
are located in municipalities with a population of less than 30,000 is changed to a
requirement that the department must award at least 14 grants for projects that are
located in municipalities with a population of less than 50,000.
The department of commerce currently awards grants and loans from the
Wisconsin development fund for various purposes generally related to technology
and product research and development and labor training. This bill provides that
in fiscal year 1999-2000 the department of commerce may provide up to $100,000
in assistance from the fund to a nonprofit organization that provides assistance to
organizations and individuals in urban areas.
Currently, WHEDA guarantees the repayment of loans made to businesses and
individuals for various specified purposes by private lending institutions. The loans
are guaranteed from the Wisconsin development reserve fund. This bill transfers
$2,000,000 from the Wisconsin development reserve fund to the environmental fund,
which funds such activities as environmental repair, groundwater management and
nonpoint source water pollution abatement. In addition, the bill reduces WHEDA's
loan guarantee authority for the remediation of brownfields.
Currently, moneys in the housing rehabilitation loan program administration
fund may be used to pay for WHEDA's expenses in administering the housing
rehabilitation loan program, which promotes housing rehabilitation through, among
other things, the purchase of housing rehabilitation loans from lenders. Moneys may
be transferred to the general fund if the moneys are no longer required for the
housing rehabilitation loan program. This bill eliminates the transfer of moneys to
the general fund and instead authorizes the transfer of moneys to the Wisconsin
development reserve fund, which WHEDA uses to fund loan guarantees under all of
its loan guarantee programs.
The bill also eliminates the cultural and architectural landmark loan
guarantee program, under which WHEDA may guarantee a loan to an organization
for acquiring, constructing, improving or rehabilitating a property that is an
architectural masterpiece and that has historical significance.
Under the statutes, records created and maintained by a governmental agency
are normally open to inspection by anyone who requests inspection or copies of the
records. Also under current law, a governmental agency is prohibited from selling
or renting a record containing an individual's name or address unless authorized by
statute. This bill allows the department of tourism to refuse to reveal names,
addresses and related demographic information from any lists maintained by the
department of persons who have requested travel information from the department.
In addition, if the department reveals information from any such list, the
department may charge a fee to recover its costs in compiling and providing the
information.
Under current law, the department of commerce awards grants to
community-based organizations for regional economic development, but is limited
in the amount that it may award in a fiscal year. This bill removes this limit so that
the department may use its discretion in the total amount of grants awarded.
Under current law, the department of commerce provides technical assistance,
or a grant for technical assistance, to individuals, nonprofit organizations and
businesses with fewer than 25 full-time employes for developing and planning the
start-up or expansion of a business that is expected to provide job opportunities for
persons with severe disabilities. This bill makes businesses with fewer than 100
employes eligible for such assistance.
Commerce
This bill allows a savings bank, a savings and loan association and a state bank
(a financial institution) to become certified by the division of banking in the
department of financial institutions (DFI) as a universal bank. If certified as a
universal bank, the financial institution may exercise certain additional powers.
In order to be certified as a universal bank, a financial institution must be
chartered or organized, and regulated, as a Wisconsin financial institution and be in
existence and continuous operation for at least three years; must be well-capitalized
or adequately capitalized; must not exhibit moderately severe or unsatisfactory
financial, managerial, operational and compliance weaknesses; and must not have
been the subject of any enforcement action within the 12 months preceding the
application.
A financial institution that the division of banking certifies as a universal bank
retains its original status and remains subject to all of the laws that applied to the
financial institution prior to its certification as a universal bank, except to the extent
that such laws are inconsistent with the powers and duties of universal banks.
The bill expands the powers of a financial institution that becomes certified as
a universal bank to include any activity authorized for any savings bank, savings and
loan association or state bank. In addition, the bill does all of the following with
respect to the powers that a universal bank may exercise:
1. The bill grants a universal bank the authority to exercise all powers that may
be exercised, either directly or through a subsidiary, by a national bank, a federally
chartered savings bank or a federally chartered savings and loan association.
2. A universal bank may deal in loans or extensions of credit for any purpose.
Like state banks, the limitations imposed on a universal bank's lending generally
focus on the total amount of liabilities of any one lender at any one time. Although
the limit varies, the general rule is that the total liabilities of any one person to a
universal bank may not exceed 20% of the capital of the universal bank. In addition,
the bill grants a universal bank additional authority to lend an aggregate amount
to all borrowers not to exceed 20% of the bank's capital. The division of banking may
suspend this additional authority based upon factors including the universal bank's
capital adequacy, management, earnings, liquidity and sensitivity to market risk.
3. To the extent consistent with safe and sound banking powers, a universal
bank may purchase, sell, underwrite and hold certain investment securities in an
amount up to 100% of the universal bank's capital. A universal bank may not invest
greater than 20% of its capital in any one obligor or issuer. Subject to certain limits,
the bill also allows a universal bank to purchase, sell, underwrite and hold equity
securities. Universal banks may also invest in certain housing properties and
projects and profit-participation projects. The bill provides that a universal bank
also may invest without limitation in several specific types of securities. The
universal bank may invest in risk management instruments, including financial
futures transactions, financial operations transactions and forward commitments,
solely for the purpose of reducing, hedging or otherwise managing its interest rate
risk exposure. In addition, a universal bank may invest in other financial
institutions. However, the bill contains specific provisions governing the purchase
by a universal bank of its own stock and of stock in banks and bank holding
companies.
4. The bill grants a universal bank the authority to establish the types and
terms of deposits that the universal bank solicits and accepts. A universal bank may
pledge its assets as security for deposits and, with the approval of the division of
banking, may securitize its assets for sale to the public. In addition, a universal bank
may exercise certain safe deposit and trust powers.
5. A universal bank may exercise all powers necessary or convenient to effect
the purposes for which the universal bank is organized or to further the businesses
in which the universal bank is lawfully engaged. In addition, the bill allows a
universal bank to engage in activities that are reasonably related or incident to the
purposes of the universal bank. The bill specifies numerous activities that are either
reasonably related or incidental powers, including real estate-related services;
insurance services, other than insurance underwriting; securities brokerage;
investment advice; securities and bond underwriting; mutual fund activities;
financial consulting; and tax planning and preparation. A universal bank may also
engage in any activity permitted to be engaged in by bank holding companies under
the federal Bank Holding Company Act.
Under Wisconsin's version of the Uniform Unclaimed Property Act (UUPA), the
holder of certain types of intangible property that is presumed to be abandoned must
report and deliver the property to the state treasurer. If the presumption that the
property is abandoned is incorrect, the holder must file a statement with the state
treasurer explaining the error in the presumption. The UUPA defines intangible
property to include a sales credit reflected in a vendor's bookkeeping. This bill
excludes from the definition of intangible property a balance credited by a business
association to a commercial customer's account in the ordinary course of business.
Thus, the bill eliminates the requirement that a vendor either report and deliver to
the state treasurer a sales credit issued to a commercial customer's account or file
a statement with the state treasurer explaining why the sales credit is not reportable
as abandoned property.
Under current law, certain articles and substances, including toys containing
mercury, are statutorily banned from being sold or distributed in this state. This bill
expands the ban to include fever thermometers that contain mercury.
Under current law, a person who owns a meter used to sell or deliver liquefied
petroleum gas must comply with certain requirements to ensure the accuracy of the
meter and the price charged to the purchaser. These requirements include
registering the meter with the department of agriculture, trade and consumer
protection (DATCP) and having the meter inspected annually by a meter servicing
company that is licensed by DATCP. The meter service company then must file with
DATCP a report of the test results.
This bill changes the registration requirement to a licensing requirement and
imposes the requirement on the operator of the meter instead of the owner. The bill
also imposes the requirement that the meter be inspected on the operator instead of
on the owner.
Current law imposes fees on meter owners for failing to comply with these
registration and testing requirements and on meter servicing companies for failing
to comply with the reporting requirements. This bill authorizes DATCP to suspend
or revoke operator licenses for and meter and servicing licenses for these failures.
On January 1, 1999, 11 members of the European Union (Germany, France,
Italy, Spain, the Netherlands, Belgium, Portugal, Finland, Ireland, Austria and
Luxembourg) adopted the euro as their single currency. Beginning on January 1,
1999, there is a three-year period for the conversion of the currencies of the members
to the euro. On January 1, 2002, euro notes and coins will be introduced and on July
1, 2002, the member currencies will be withdrawn from circulation.
This bill provides a general mechanism for interpreting contracts or other legal
instruments that are entered into or executed in this state or that contain provisions
that require the contract or other legal instrument to be interpreted according to the
laws of this state and that use currencies or other monetary units affected by the
introduction of the euro. Generally, under the bill, any contract or other legal
instrument that uses a currency or other monetary unit that is affected by the euro
must use the euro as a commercially reasonable substitute for the currency or
monetary unit. The bill also provides that no person may discharge or otherwise
excuse performance under any contract or other legal instrument, or unilaterally
alter the terms of, or terminate, any contract or other legal instrument, as a result
of the requirement that the euro be a commercially reasonable substitute for the
currency or monetary unit.
This bill changes the name of the division of savings and loan in DFI to the
division of savings institutions.
This bill authorizes DFI to charge members of the public a fee for accessing or
using DFI's databases or computer systems.
Buildings and safety
Under current law, the department of commerce regulates private sewage
systems. A private sewage system is a sewage treatment system with a septic tank
or an alternative sewage system approved by the department of commerce, such as
a holding tank. Under current law, a person who is responsible for a point source of
pollution (pollution from a pipe or similar conveyance into the surface water or
groundwater of this state) is generally required to obtain a water pollution discharge
permit from the department of natural resources (DNR).
Under this bill, the department of commerce regulates small sewage systems
rather than private sewage systems. A small sewage system either is a wastewater
treatment and disposal system that discharges below the surface of the ground and
that has a design flow that does not exceed a maximum established by the
department of commerce or is a holding tank. The bill authorizes DNR to exempt
small sewage systems from the requirement to obtain a water pollution discharge
permit.
Current law charges governmental units (counties in which small sewage
systems are located or, for counties with a population of at least 500,000, the cities,
villages or towns in which such systems are located) with certain regulatory duties
concerning private sewage systems. Governmental units may delegate these
regulatory duties to town sanitary districts or certain public inland lake protection
and rehabilitation districts if these districts consent. This bill permits governmental
units to delegate these regulatory duties to the department of commerce if the
department consents.
Under current law, one statute authorizes governmental units to issue sanitary
permits for the installation of small sewage systems and another statute authorizes
both the department of commerce and governmental units to issue sanitary permits.
The department's practice has been to issue sanitary permits for the installation of
small sewage systems on state-owned property only. This bill permits both the
department and governmental units to issue sanitary permits for the installation of
small sewage systems on either private or state-owned property.
Current law prohibits a governmental unit from issuing a sanitary permit for
the installation of a small sewage system if the department of commerce finds that
the governmental unit has not adopted a small sewage system ordinance, as required
by law, or if the governmental unit fails to carry out its regulatory duties concerning
small sewage systems. This bill provides instead that the department may order the
governmental unit to remedy its failure to adopt a small sewage system ordinance
or to carry out its regulatory duties.
Under current law, the department of commerce administers a grant program
for the replacement or rehabilitation of certain types of failing small sewage systems.
Generally, a covered system is one that discharges sewage into surface water,
groundwater or bedrock or to drain tile or the surface of the ground. Under the
program, the department awards grants to eligible local governmental units which,
in turn, award grants to eligible individuals and businesses. A person is generally
eligible for a grant to replace or rehabilitate a failing sewage system if, among other
things, he or she owns a principal residence that was constructed and inhabited
before July 1, 1978, and that is served by a covered system and if the person's annual
Wisconsin adjusted income does not exceed $45,000. If there is insufficient funding
for all eligible individuals and businesses, the grants are prorated.
Under this bill, in a year in which the department of commerce must prorate
funds under the program, a local governmental unit that received a prorated grant
may apply for a no-interest loan to increase the prorated grants provided to eligible
individuals and businesses. To obtain a loan, a local governmental unit must enter
into a financial assistance agreement with the department of administration and the
department of commerce. In addition, the bill provides that a person is eligible for
a grant if the system serving the principal residence was installed before July 1,
1978, the person's federal adjusted gross income does not exceed $45,000 and the
person meets the other eligibility requirements.
Current law requires small sewage systems to be inspected every three years
by, among others, persons licensed by DNR to service septic tanks (pumpers). This
bill eliminates pumpers as a class of approved inspectors for small sewage systems
and adds small sewage system inspectors certified by the department of commerce.
The bill also eliminates the three-year inspection requirement and requires instead
that the department of commerce establish a schedule for the inspection or pumping
of systems.
Current law requires cities and metropolitan sewerage districts to report to the
department of commerce each failure of a state licensed plumber to qualify as a
journeyman or master plumber and each wilful violation of any plumbing regulation.
This bill eliminates this reporting requirement.
Correctional system
Adult correctional system
This bill provides that the department of corrections (DOC) may not enter into
any contract or other agreement if, in the performance of the contract or agreement,
a prisoner would perform data entry or telemarketing services and have access to any
information that may serve to identify a minor or have access to an individual's
financial transaction card numbers, checking or savings account numbers or social
security number. Under the bill, a financial transaction card means an instrument
or device issued to the cardholder for obtaining anything on credit, for certifying or
guaranteeing the availability of funds sufficient to honor a draft or check or for
gaining access to an account.
Under current law, DOC may, until July 1, 1999, operate the juvenile secured
correctional facility at Prairie du Chien as a state prison for nonviolent offenders who
are not more than 21 years of age. This bill extends that authority to July 1, 2001.
