Farmland preservation planning
Under the bill, certifications of current farmland preservation plans expire
between December 31, 2011, and December 31, 2015. The higher the increase in
population per square mile of a county from 2000 to 2007, the sooner the certification
of its farmland preservation plan expires. A county must submit an updated
farmland preservation plan that meets the requirements in the bill and have the
plan certified by DATCP to enable farmers in the county to continue to claim the
farmland preservation tax credit. Counties must submit their plans for
recertification every ten years.
The bill requires a county to include in its farmland preservation plan a
description of the county's policy and goals related to farmland preservation and

agricultural development and of the actions that the county will take to preserve
farmland and promote agricultural development. The county must also identify
farmland preservation areas, which are areas that the county plans to preserve for
agricultural use and for related uses.
The bill requires a county seeking to have DATCP certify its farmland
preservation plan to submit the plan and related information to DATCP and to
certify that the plan complies with the requirements in the bill. DATCP may certify
the plan based on the county's certification or may review the plan and determine
whether to certify it based on DATCP's own determination of whether it complies
with those requirements.
The bill authorizes DATCP to award a planning grant to reimburse a county for
up to 50 percent of the cost of preparing an updated farmland preservation plan.
Farmland preservation zoning
Under current law, a city, village, town, or county (political subdivision) may
adopt a zoning ordinance that enables farmers to be eligible for the farmland
preservation tax credit.
Under this bill, certifications of current farmland preservation zoning
ordinances expire between December 31, 2012, and December 31, 2016. The higher
the increase in population per square mile of a political subdivision from 2000 to
2007, the sooner its certification expires. A political subdivision must submit an
updated farmland preservation zoning ordinance that meets the requirements in the
bill and have it certified by DATCP to enable the farmers in the political subdivision
to continue to claim the farmland preservation tax credit based on the zoning
ordinance. Political subdivisions must submit their zoning ordinances for
recertification every ten years.
Under the bill, to be eligible for certification, a farmland preservation zoning
ordinance must be substantially consistent with a certified county farmland
preservation plan.
Under the bill, in addition to agricultural uses, a political subdivision may allow
agriculture-related uses in a farmland preservation zoning district without
requiring conditional use permits. Agriculture-related uses include businesses that
sell farm equipment or supplies and businesses that store or process agricultural
products or that process agricultural wastes and other uses specified by DATCP.
The bill also authorizes political subdivisions to approve certain uses other
than agricultural and agriculture-related uses in a farmland preservation zoning
district with conditional use permits. Generally, these include a transportation,
communications, utility, governmental, institutional, religious, or nonprofit
community use if the political subdivision makes certain determinations, including
that the proposed use and its location in the zoning district are reasonable and
appropriate, considering alternative locations; that the use is reasonably designed
to minimize the conversion of land from agricultural use; and that the use does not
substantially impair the agricultural use of surrounding parcels.
Current law requires a political subdivision to specify a minimum lot size for
farmland preservation zoning districts. This bill eliminates that requirement.

The bill provides two methods for political subdivisions to allow the
construction of nonfarm residences in farmland preservation zoning districts. A
political subdivision may issue a conditional use permit for the construction of a
single nonfarm residence if several requirements are satisfied. The requirements
include that the ratio of nonfarm residential acreage to farm acreage on the base
farm tract on which the residence will be located will not be greater than 1 to 20 after
the residence is constructed and that there will not be more than four nonfarm
dwelling units, nor five dwelling units of any kind, on the base farm tract after the
nonfarm residence is constructed. A base farm tract is all of the land that is part of
a single farm when DATCP first certifies the updated farmland preservation zoning
ordinance.
The bill also authorizes a political subdivision to issue a conditional use permit
that covers more than one nonfarm residence. The parcels on which the nonfarm
residences are constructed must be contiguous and the political subdivision must
ensure that if all of the nonfarm residences were constructed, each would satisfy the
conditions described above for approval of a single nonfarm residence.
The bill requires a political subdivision seeking to have DATCP certify its
farmland preservation zoning ordinance to submit the ordinance and related
information to DATCP and to certify that the ordinance complies with the
requirements in the bill. DATCP may certify the ordinance based on the political
subdivision's certification or may review the ordinance and determine whether to
certify it based on DATCP's own determination of whether it complies with those
requirements.
Under current law, a political subdivision may rezone land out of a farmland
preservation zoning district only after making findings based on consideration of
matters that include whether providing public facilities to accommodate
development will place an unreasonable burden on affected local governments and
whether development will cause undue water or air pollution or unreasonably
adverse effects on rare natural areas. The law requires political subdivisions to
notify DATCP when they rezone land out of a farmland preservation district.
Under the bill, in order to rezone land out of a farmland preservation zoning
district, a political subdivision must make a number of findings, including that the
land is better suited for a use not allowed in a farmland preservation zoning district,
that the rezoning is substantially consistent with the certified county farmland
preservation plan, and that the rezoning will not substantially impair the
agricultural use of surrounding parcels. The bill requires an annual report of the
amount and location of land that was rezoned out of farmland preservation zoning
districts.
Under current law, when property is rezoned out of a farmland preservation
zoning district, DATCP must place a lien on the rezoned land in an amount equal to
the farmland preservation tax credits received by the owner of the land during the
preceding ten years, plus interest. The law also requires DATCP to file a lien when
a conditional use permit is granted for a use that is not an agricultural use.
This bill eliminates the lien requirements. Under the bill, a political
subdivision may not rezone land out of a farmland preservation zoning district until

the owner of the land pays the political subdivision an amount equal to the number
of acres rezoned multiplied by three times the per acre value of the highest value of
cropland in the city, village, or town in which the land is located, as determined by
DOR for the purposes of use value assessment. The political subdivision must pay
this amount to DATCP. The political subdivision may require a higher payment for
rezoning and retain the additional amount.
Farmland preservation agreements
Under current law, DATCP enters into farmland preservation agreements with
farmers in counties with certified farmland preservation plans. An agreement
requires the landowner to maintain the land in agricultural use for the term of the
agreement, except that DATCP may release land from the agreement under specified
circumstances. The term of a farmland preservation agreement is from 10 to 25
years, subject to renewal for additional 10- to 25-year terms.
This bill prohibits DATCP from renewing current farmland preservation
agreements. The bill authorizes DATCP to enter into a new farmland preservation
agreement, with a term of at least 15 years, only for land that is in an agricultural
enterprise area, as designated by DATCP.
DATCP may not designate an area as an agricultural enterprise area unless it
is entirely located in a farmland preservation area identified in a certified farmland
preservation plan and it is primarily in agricultural use. DATCP may designate an
area as an agricultural enterprise area only if it receives a petition requesting the
designation filed by each political subdivision in which any part of the area is located
and by the owners of at least five farms that would be eligible for coverage by
farmland preservation agreements.
Current law specifies situations in which DATCP may release land from, or
terminate, a farmland preservation agreement. Generally, when land is released or
an agreement is terminated, DATCP must place a lien on the land in an amount
equal to the farmland preservation tax credits received by the owner during the
preceding ten years, plus interest.
This bill eliminates the lien requirement. Under the bill, DATCP may release
land from, or terminate, a farmland preservation agreement if it finds that the
termination or release will not impair agricultural use of other farmland and if the
owner of the land pays to DATCP an amount equal to the number of acres rezoned
multiplied by three times the per acre value of the highest value of cropland in the
city, village, or town in which the land is located, as determined by DOR for the
purposes of use value assessment.
Soil and water conservation
Current law requires counties to establish soil and water conservation
standards, which must be approved by LWCB in order for farmers in the county to
be eligible for farmland preservation tax credits. A county must monitor compliance
with its soil and water conservation standards and if it determines that a farmer
violates the standards, it must issue a notice of noncompliance to the farmer. As long
as a farmer is out of compliance with the county standards, the farmer is ineligible
for the farmland preservation tax credit.

This bill eliminates the requirement that each county establish soil and water
conservation standards. Under the bill, a farmer must comply with land and water
conservation standards that DATCP has promulgated under other current laws. The
bill continues the requirement that a county monitor compliance with the standards
and specifically requires a county to inspect each farm for which the owner claims
farmland preservation tax credits at least once every four years. The bill requires
a county to issue a notice of noncompliance if it determines that a farmer violates the
standards. The county must provide a copy of each notice to DOR. As long as a
farmer is out of compliance with DATCP's standards, the farmer is ineligible for the
farmland preservation tax credit.
For a description of the changes in the farmland preservation tax credit, please
see "TAXATION."
Purchase of agricultural conservation easements
An agricultural conservation easement (easement) is an interest in land that
preserves the land for agricultural use. This bill creates a program for the purchase
of easements, from willing landowners, by DATCP in conjunction with political
subdivisions and nonprofit conservation organizations (applicants). Under the bill,
DATCP may reimburse an applicant for the transaction costs (such as the costs of
land surveys and appraisals) for obtaining an easement plus not more than 50
percent of the appraised fair market value of the easement.
DATCP may approve an application only if it determines that the purchase of
the easement would serve a public purpose, considering such criteria as the value of
the easement in preserving or enhancing agricultural production capacity and water
quality, and the likelihood that the land would be converted to nonagricultural use
if it is not protected by an easement.
Once DATCP approves an application, DATCP and the cooperating entity enter
into an agreement specifying the terms of DATCP's participation in the purchase of
the easement, including the share of the costs that DATCP will pay. After an
applicant purchases an easement and records it with the register of deeds, DATCP
provides the agreed-upon reimbursement. Both the cooperating entity and DATCP
may enforce the restrictions in the easement. An easement purchased under the
program continues indefinitely, except that a court may terminate an easement if it
finds that it is no longer possible for the easement to achieve its original purpose.
The bill authorizes $12,000,000 in general fund supported borrowing for the
purchase of easements.
Current law authorizes DATCP to participate in the federal Conservation
Reserve Enhancement Program (CREP) under which payments are made to
landowners for measures to improve water quality, erosion control, and wildlife
habitat. Current law authorizes $40,000,000 in general fund supported borrowing
for participation in CREP. This bill reduces that borrowing authority by
$12,000,000.
Other agriculture
Under current law, DATCP awards grants for two kinds of clean sweep
programs, one in which counties collect unwanted agricultural chemicals, such as
pesticides, and the other in which local governments collect and dispose of household

hazardous waste and unwanted prescription drugs. This bill eliminates the grants
for clean sweep programs.
This bill establishes an assessment to be paid to DATCP by businesses that
slaughter certain kinds of animals. The assessment per animal is one cent for
poultry, ten cents for calves, and 14 cents for older cattle and for swine. The bill
appropriates the revenue from the assessment for meat safety inspections and
animal health programs.
This bill authorizes DATCP to charge a reinspection fee if DATCP conducts a
reinspection of a fish farm, animal market, animal dealer operation, an animal
trucker operation, or premises at which farm-raised deer are kept because the
department has found that the premises, facility, or operation violates state law or
administrative rules. The bill also eliminates the requirement that DATCP inspect
each fish farm when it is first registered with DATCP.
Currently, DATCP awards grants for land and water resource management
projects and for the construction of animal waste management systems. This bill
increases the general obligation bonding authority for the grants by $7,000,000.
This bill eliminates the LWCB, which has responsibilities related to farmland
preservation, soil and water resource management, and the reduction of water
pollution from nonpoint sources. The bill eliminates some LWCB responsibilities
and transfers others to DATCP.
The bill creates the Land and Water Resource Council to advise DATCP and
DNR about matters related to land and water resources.
This bill repeals current requirements concerning the labeling of agricultural
and vegetable seed, prohibitions on the sale of seed containing more than specified
amounts of certain noxious weed seeds, and the designation of certain weeds as
noxious weeds. The bill requires DATCP to promulgate rules on the subjects of seed
labeling, the amount of noxious weed seeds in agricultural and vegetable seed, and
the designation of weeds as noxious weeds.
The bill lowers the fees for seed labeler's licenses for some persons with annual
gross sales of less than $100,000 and increases the fees for persons with higher
annual gross sales. The bill also authorizes DATCP to change the fees by rule.
This bill transfers a total of $1,000,000 from the agricultural chemical cleanup
fund to the general fund and a total of $1,500,000 from the agrichemical
management fund to the general fund.
commerce and economic development
Economic development
Under current law, the Department of Commerce (Commerce) may award
grants or make loans under the Community-Based Economic Development
Program, the Rural Economic Development Program, and the Minority Business
Grant and Loan program to eligible businesses, organizations, or individuals that
agree to undertake certain eligible activities.
The Rural Economic Development Board advises Commerce on the Rural
Economic Development Program, and the Minority Business Development Board
advises Commerce on the Minority Business Grant and Loan Program.

Under current law, the Development Finance Board in Commerce awards
grants under the Wisconsin Development Fund program.
This bill eliminates the Community-Based Economic Development Program,
the Rural Economic Development Program and Rural Economic Development
Board, the Minority Business Grant and Loan Program and Minority Business
Development Board, and the Development Finance Board. The bill creates the
Economic Policy Board. The responsibilities of the Development Finance Board are
assumed by the Economic Policy Board.
This bill creates the forward innovation fund (FIF). Under the FIF, Commerce
may, in consultation with the Economic Policy Board, award grants or make loans
for the purpose of engaging in certain eligible activities to businesses, municipalities,
community-based organizations, cooperative associations, local development
corporations, and nonprofit organizations working on economic or community
development.
Eligible activities under the FIF include:
1. The start-up, expansion, or retention of minority businesses.
2. The start-up, expansion, or retention of businesses in economically
distressed areas.
3. Innovative proposals to strengthen inner cities.
4. Innovative proposals to strengthen rural communities.
5. Innovative programs to strengthen clusters.
6. Innovative proposals to strengthen entrepreneurship.
Recipients of a grant or loan from the FIF must provide a 25 percent match.
Under current law, Commerce may designate a portion of the state as a
development zone, a development opportunity zone, an enterprise development
zone, an agricultural development zone, an enterprise zone, an airport development
zone, or a technology zone. Commerce may also certify persons who agree to
undertake certain eligible activities in one of the designated zones. Eligible activities
include job creation, environmental remediation, and capital investment. Persons
who obtain certification are eligible for tax benefits.
This bill consolidates the development zones, enterprise development zones,
agricultural development zones, technology zones, and airport development zones
(five development zone programs) into a program that provides tax benefits to
persons who enter into a contract with Commerce to undertake eligible activities
anywhere in the state. Eligible activities under the bill include all of the following:
1. Projects that result in the creation and maintenance of jobs paying wages
and providing benefits at a level approved by Commerce.
2. Projects that involve a significant investment of capital in new equipment,
machinery, real property, or depreciable personal property.
3. Projects that involve significant investments in the training or reeducation
of employees for the purpose of improving the productivity or competitiveness of the
business of the person.
4. Projects that will result in the location or retention of a person's corporate
headquarters in Wisconsin or that will result in the retention of employees if the
person's corporate headquarters are located in Wisconsin.

Commerce may allocate tax benefits under the consolidated program up to the
total amount remaining to be allocated under the five development zone programs
on the effective date of this bill. Tax benefits are allocated under the bill only after
the person has verified to Commerce that the person has met the performance
obligations established under the contract.
The value of tax benefits for which a person is eligible under the new tax credit
program depends on the number of jobs created, the amount of the capital
investment made, the amount of training or reeducation provided to the employees,
or the number of jobs retained by having corporate headquarters located in
Wisconsin.
Under the bill, Commerce may award additional tax benefits to a person that
conducts eligible activities in an economically distressed area or if the eligible
activities benefit members of a targeted group. The bill requires Commerce to
develop a methodology for designating an area as an "economically distressed area."
Targeted groups include persons who reside in an area designated by the federal
government as an economic revitalization area, persons who are eligible for child
care assistance, persons who are food stamp recipients, or persons who are
economically disadvantaged.
The bill requires the Legislative Audit Bureau to prepare a financial and
program evaluation audit of the consolidated economic development tax benefit
program created by the bill no later than July 1, 2012.
This bill creates the Jobs Tax Benefit. A person may be certified to receive tax
benefits under this program if the person operates or intends to operate a business
in Wisconsin and will increase its net employment of full-time employees in
Wisconsin. A person certified under the program may receive per-employee tax
benefits of up to 10 percent of the wages paid to a full-time employee who earns
wages of at least $20,000 but not more than $100,000 if employed in a Tier I county
or municipality and who earns wages of at least $30,000 but not more than $150,000
if employed in a Tier II county or municipality. A person certified under the program
may also receive tax benefits for providing employee job training. The bill requires
Commerce to define Tier I and Tier II counties and municipalities and establish
conditions for the revocation of a certification and the repayment of tax benefits.
This bill authorizes Commerce to award a grant to a research institution or
nonprofit organization involved in economic development for: 1) expanding access
to capital networks; 2) creating or running a network to connect businesses and
entrepreneurs with capital; or 3) creating an activity, event, or strategy to connect
businesses and entrepreneurs with capital. The bill authorizes grants to provide
matching funds for funding a new business or determining the feasibility of a new
business idea if Commerce determines a grant will increase funding for new
businesses or will leverage private investment and job creation.
Currently, Commerce may charge a recipient of a grant or loan from the
Wisconsin development fund a 2 percent origination fee if the grant or loan amount
equals or exceeds $200,000. This bill lowers the threshold amount to $100,000.
Under current law, Commerce awards grants and makes loans to qualified
businesses for economic diversification and brownfield remediation, and to

businesses that have been negatively affected by a casino. Commerce also awards
grants for specific economic development projects in specific locations in this state.
This bill authorizes Commerce to collect a 2 percent origination fee on certain of these
grants and loans of $100,000 or more.
Under current law, Commerce may certify a business that is at least 51 percent
owned, controlled, and actively managed by an eligible minority group member or
members as a minority business. A business certified by Commerce may receive
certain preferences in governmental procurement.
This bill permits Commerce to certify a business that is at least 30 percent
owned by an eligible minority group member or members, provided the minority
group member or members control the day-to-day operations of the business,
control at least 51 percent of the voting rights of the equity shares of the business,
and appoint no less than 51 percent of the members of the board of directors of the
business.
Under current law, Commerce may award grants for the redevelopment of
"brownfields," which include facilities or sites that are idle or underused because of
environmental contamination. Commerce may award a brownfields redevelopment
grant only if certain persons responsible for the contamination of the project site are
financially unable to pay the costs to remediate or redevelop the site. Commerce
must consider four criteria when awarding brownfields redevelopment grants and
must accord different values to the criteria.
This bill eliminates the requirement that the person who caused the
environmental contamination be financially unable to pay the costs to redevelop the
site. The bill also changes the criteria to be considered by Commerce when making
awards and eliminates the requirement that different criteria be accorded different
values.
This bill authorizes Commerce to award grants for film-related or
video-related projects that create long-term jobs in this state.
This bill requires the Department of Tourism to annually make a grant of at
least $200,000 to Native American Tourism of Wisconsin.
This bill eliminates annual funding from Commerce to the Manufacturing and
Advanced Technology Training Center; the Northwest Regional Planning
Commission; Oneida Small Business, Inc. and Project 2000; and a nonprofit
organization that provides assistance to organizations and individuals in urban
areas.
Under current law, Commerce may award a grant or make a loan to a business
or researcher to fund certain renewable energy projects. Currently, repayments of
the loans are deposited into the general fund. This bill appropriates the repayments
to Commerce to fund additional renewable energy grants and loans and certain other
economic development grants and loans.
Buildings and safety
Under current law, the Building Inspector Review Board is required to review
complaints concerning possible incompetent, negligent, or unethical conduct by
building inspectors and to revoke the certification of a building inspector who has
engaged in such conduct. The review board may reverse or modify decisions made

by building inspectors that the review board determines are in error. This bill
eliminates the review board.
Under current law, Commerce is generally required to regulate the
construction of public buildings and places of employment. Current law also
authorizes Commerce to issue certain credentials to persons engaged in the
construction trades, such as plumbers and electricians. Current law establishes the
maximum fees that Commerce may charge for certain services it provides including
administering examinations and issuing licenses. This bill eliminates the
mandatory caps on the amounts that Commerce may charge for these services and
instead provides that the fees must as closely as possible equal the cost of providing
the services.
Commerce
Securities
This bill increases from $750 to $1,000 the securities registration and notice
filing fee paid to DFI and, for investment companies such as mutual funds, increases
the minimum and maximum annual sales fee from a minimum of $150 and a
maximum of $1,500 to a minimum of $500 and a maximum of $10,000.
This bill increases from $30 to $60 the license fee paid to DFI for securities
agents and investment adviser representatives. The bill also increases from $30 to
$60 the broker-dealer and investment adviser branch office filing fee.
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