LRBa1957/1
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2003 - 2004 LEGISLATURE
SENATE AMENDMENT 4,
TO 2003 ASSEMBLY BILL 655
January 20, 2004 - Offered by Senators Hansen, Erpenbach, Chvala, Carpenter,
Coggs, Breske, Robson and Lassa.
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At the locations indicated, amend the
bill, as shown by assembly substitute
2amendment 2, as follows:
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31. Page 3, line 10: delete "and granting rule-making authority" and substitute
4"requiring state agencies, political subdivisions, and housing, redevelopment, and
5community development authorities, as well as subsidy recipients, to report on
6subsidies provided to businesses; requiring certain disclosures by business subsidy
7applicants; prohibiting business subsidies under certain circumstances; requiring
8the Legislative Audit Bureau to publish a report on business subsidies and to
9evaluate their effectiveness; defining a full-time job for purposes of development
10zone tax credits; altering eligibility requirements for development zone and
11technology zone tax credits; granting rule-making authority; and providing a
12penalty".
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1"
Section 1b. 13.94 (12) of the statutes is created to read:
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13.94
(12) Business subsidies report; compilation and summary. (a) In this
3subsection:
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1. "Business" has the meaning given in s. 20.926 (2).
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2. "Business subsidy" has the meaning given in s. 20.926 (3).
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3. "Grantor" has the meaning given in s. 20.926 (4).
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(b) Annually, by August 1, the legislative audit bureau shall publish a report
8that summarizes the business subsidies provided in the preceding year. The report
9shall include any information and analysis that the legislative audit bureau
10determines is relevant and will assist the legislature in evaluating the cost,
11effectiveness, and equity of investing public moneys in businesses and economic
12development. The report may include any information and data that is available to
13the legislative audit bureau and shall include the reports filed under s. 20.9265 (4)
14(b) and (c) and a compilation and summary of the reports filed under s. 20.9265 (4)
15(a). In each year after the year in which the legislative audit bureau receives the
16report under s. 66.1105 (13), the legislative audit bureau shall include a summary
17of that report in the report under this subsection.
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(c) The portion of the report under this subsection that is the compilation and
19summary of the reports under s. 20.9265 (4) (a) shall include at least all of the
20following information:
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1. The total amount of business subsidies awarded in each county of the state.
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2. Distribution of business subsidies, categorized by subsidy amounts.
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3. Distribution of business subsidy amounts, categorized by the length of time
24over which the subsidy is provided.
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14. Distribution of business subsidies, categorized by type of subsidy, amount of
2subsidy, and public purpose.
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5. The percentage and number of recipients that reached their goals by the
4times specified in their subsidy agreements under s. 20.9265 (2) (a) 6.
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6. The percentage and number of recipients that reached their interim goals,
6if any.
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7. The percentage and number of recipients that did not reach their goals by
8the times specified in their subsidy agreements under s. 20.9265 (2) (a) 6.
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8. The total dollar amount of business subsidies provided to recipients that did
10not reach their goals by the times specified in their subsidy agreements under s.
1120.9265 (2) (a) 6.
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9. The number of jobs created as a result of business subsidies, shown in
13separate wage bands, as defined in s. 20.926 (10).
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10. Fringe benefits paid or otherwise provided as a result of business subsidies,
15shown in separate wage bands, as defined in s. 20.926 (10).
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(d) The compilation and summary of the reports under s. 20.9265 (4) (a) shall
17be presented in a manner that allows for comparisons across time periods and among
18grantors and, in addition, shall include sufficient information to enable comparisons
19between wages paid and fringe benefits provided by new jobs created as a result of
20business subsidies and wages paid and fringe benefits provided by comparable jobs
21in each area in which the new jobs are created.
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(e) In addition to summarizing and compiling the reports specified in par. (b),
23the legislative audit bureau shall include in the report under this subsection a
24comparison and evaluation of the effectiveness of each business subsidy, or program
25under which business subsidies are provided, in achieving a public purpose and
1recommendations for improving the programs. The legislative audit bureau is not
2required to compare and evaluate under this paragraph the programs included in the
3reports filed under s. 20.9265 (4) (b) and (c).
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(f) The legislative audit bureau may develop a report form for the manual or
5electronic submission of the report required under s. 20.9265 (4) (a) to ensure that
6the appropriate data is collected to enable the legislative audit bureau to satisfy the
7requirements under this subsection.
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(g) The report under this subsection is open to public inspection.
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9Section 1c. 20.001 (intro.) of the statutes is amended to read:
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1020.001 Definitions and abbreviations. (intro.)
In Except as otherwise
11provided, in this chapter terms and abbreviations have the following meanings:
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1320.926 Definitions for business subsidy awards and reports. In this
14section and s. 20.9265:
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15(1) "Agency" means a state agency or a local government agency.
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16(2) "Business" means any of the following:
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(a) A person engaged in a business enterprise for profit in this state.
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(b) An organization or enterprise operating not for profit in this state that has
19at least 100 full-time positions with a ratio of highest-paid to lowest-paid employee
20that exceeds 10 to one, determined on the basis of full-time equivalent positions.
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21(3) (a) Except as provided in par. (b), "business subsidy" means any of the
22following:
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1. Public improvements that cost at least $25,000, that are made to buildings
24or lands owned by the state or a political subdivision, and that exclusively benefit a
25single business at the time that the improvements are made.
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12. Any of the following that has a cost to an agency or the state of at least
2$25,000 and that is given to a business by an agency:
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a. A grant.
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b. A contribution of personal or real property or infrastructure.
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2m. Any transfer of property to a business by an agency for at least $25,000
6below the property's acquisition cost or fair market value at the time of the transfer,
7whichever is greater.
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3. A loan of at least $75,000 that is given to a business by an agency.
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(b) "Business subsidy" does not include any of the following:
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1. Assistance for the sole purpose of providing job readiness and training
11services.
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2. Housing assistance.
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3. Energy conservation assistance.
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4. A reduction or deferral of any tax or fee, including tax credits under ch. 71,
15general tax reductions, and tax reductions resulting from conformity with federal
16law.
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5. General changes in the tax incremental financing laws and other general tax
18law changes.
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6. Worker's compensation and unemployment compensation.
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7. Payment to a person from an agency for the purchase of goods or services.
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7m. Payments made under ch. 32.