SB77, s. 37 6Section 37. 234.61 (1) of the statutes is amended to read:
SB77,15,147 234.61 (1) Upon the authorization of the department of health services, the
8authority may issue bonds or notes and make loans for the financing of housing
9projects which are residential facilities as defined in s. 46.28 (1) (d) and the
10development costs of those housing projects, if the department of health services has
11approved the residential facilities for financing under s. 46.28 (2). The limitations
12in ss. 234.18, 234.40, 234.50, 234.60, 234.63, and 234.65 do not apply to bonds or
13notes issued under this section. The definition of "nonprofit corporation" in s. 234.01
14(9) does not apply to this section.
SB77, s. 38 15Section 38. 234.63 of the statutes is repealed.
SB77, s. 39 16Section 39. 560.605 (2m) (g) of the statutes is repealed.
SB77, s. 40 17Section 40. 560.605 (7) (e) of the statutes is repealed.
SB77, s. 41 18Section 41. Subchapter VI (title) of chapter 560 [precedes s. 560.70] of the
19statutes is repealed and recreated to read:
SB77,15,2020 CHAPTER 560
SB77,15,2321 SUBCHAPTER VI
22 Tax incentives for business
23 development in Wisconsin
SB77, s. 42 24Section 42. 560.70 (2g) of the statutes is created to read:
SB77,15,2525 560.70 (2g) "Eligible activity" means an activity described under s. 560.702.
SB77, s. 43
1Section 43. 560.70 (2m) of the statutes is renumbered 560.70 (2m) (a) and
2amended to read:
SB77,16,93 560.70 (2m) (a) "Full-time Except as provided in par. (b), "full-time job" means
4a regular, nonseasonal full-time position in which an individual, as a condition of
5employment, is required to work at least 2,080 hours per year, including paid leave
6and holidays, and for which the individual receives pay that is equal to at least 150%
7of the federal minimum wage and benefits that are not required by federal or state
8law. "Full-time job" does not include initial training before an employment position
9begins.
SB77, s. 44 10Section 44. 560.70 (2m) (b) of the statutes is created to read:
SB77,16,1611 560.70 (2m) (b) The department may by rule specify circumstances under
12which the department may grant exceptions to the requirement under par. (a) that
13a full-time job means a job in which an individual, as a condition of employment, is
14required to work at least 2,080 hours per year, but under no circumstances may a
15full-time job mean a job in which an individual, as a condition of employment, is
16required to work less than 37.5 hours per week.
SB77, s. 45 17Section 45. 560.70 (4m) of the statutes is created to read:
SB77,17,418 560.70 (4m) "Member of a targeted group" means a person who resides in an
19area designated by the federal government as an economic revitalization area, a
20person who is employed in an unsubsidized job but meets the eligibility requirements
21under s. 49.145 (2) and (3) for a Wisconsin Works employment position, a person who
22is employed in a trial job, as defined in s. 49.141 (1) (n), or in a real work, real pay
23project position under s. 49.147 (3m), a person who is eligible for child care assistance
24under s. 49.155, a person who is a vocational rehabilitation referral, an economically
25disadvantaged youth, an economically disadvantaged veteran, a supplemental

1security income recipient, a general assistance recipient, an economically
2disadvantaged ex-convict, a dislocated worker, as defined in 29 USC 2801 (9), or a
3food stamp recipient, if the person has been certified in the manner under 26 USC
451
(d) (13) (A) by a designated local agency, as defined in 26 USC 51 (d) (12).
SB77, s. 46 5Section 46. 560.70 (7) (a) of the statutes is amended to read:
SB77,17,86 560.70 (7) (a) Except as provided in pars. (b) and, (c), and (d), "tax benefits"
7means the development zones credit under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx),
8and 76.636.
SB77, s. 47 9Section 47. 560.70 (7) (d) of the statutes is created to read:
SB77,17,1110 560.70 (7) (d) In ss. 560.701 to 560.706, "tax benefits" means the economic
11development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637.
SB77, s. 48 12Section 48. 560.701 of the statutes is created to read:
SB77,17,15 13560.701 Certification for tax benefits. (1) Application. Any person may
14apply to the department on a form prepared by the department for certification under
15this section. The application shall include all of the following:
SB77,17,1616 (a) The name and address of the person.
SB77,17,1717 (b) The federal tax identification number of the person.
SB77,17,1918 (c) The names and addresses of the locations where the person conducts
19business and a description of the business activities conducted at those locations.
SB77,17,2120 (d) A description of each eligible activity conducted or proposed to be conducted
21by the person.
SB77,17,2322 (e) Other information required by the department or the department of
23revenue.
SB77,18,2 24(2) Certification. (a) The department may certify a person who submits an
25application under sub. (1) if, after conducting an investigation, the department

1determines that the person is conducting or intends to conduct at least one eligible
2activity.
SB77,18,43 (b) The department shall provide a person certified under this section and the
4department of revenue with a copy of the certification.
SB77,18,7 5(3) Contract. A person certified under this section shall enter into a written
6contract with the department. The contract shall include provisions that detail all
7of the following:
SB77,18,98 (a) A description of each eligible activity being conducted or proposed to be
9conducted by the person.
SB77,18,1110 (b) Whether any of the eligible activities will occur in an economically
11distressed area, as designated by the department under s. 560.704 (1).
SB77,18,1312 (c) Whether any of the eligible activities will benefit members of a targeted
13group, as determined by the department under s. 560.704 (2).
SB77,18,1614 (d) A compliance schedule that includes a sequence of anticipated actions to be
15taken or goals to be achieved by the person before the person may receive tax benefits
16under s. 560.703.
SB77,18,1717 (e) The reporting requirements with which the person must comply.
SB77,18,1918 (f) If feasible, a determination of the tax benefits the person will be authorized
19to claim under s. 560.703 (2) if the person fulfills the terms of the contract.
SB77, s. 49 20Section 49. 560.702 of the statutes is created to read:
SB77,18,22 21560.702 Eligible activities. A person who conducts or proposes to conduct
22any of the following may be certified under s. 560.701 (2):
SB77,18,25 23(1) Job creation project. A project that creates and maintains for a period of
24time established by the department by rule full-time jobs in addition to any existing
25full-time jobs provided by the person.
SB77,19,4
1(2) Capital investment project. A project that involves a significant
2investment of capital, as defined by the department by rule under s. 560.706 (2) (b),
3by the person in new equipment, machinery, real property, or depreciable personal
4property.
SB77,19,8 5(3) Employee training project. A project that involves significant investments
6in the training or reeducation of employees, as defined by the department by rule
7under s. 560.706 (2) (c), by the person for the purpose of improving the productivity
8or competitiveness of the business of the person.
SB77,19,13 9(4) Project related to persons with corporate headquarters in Wisconsin.
10A project that will result in the location or retention of a person's corporate
11headquarters in Wisconsin or that will result in the retention of employees holding
12full-time jobs in Wisconsin if the person's corporate headquarters are located in
13Wisconsin.
SB77, s. 50 14Section 50. 560.703 of the statutes is created to read:
SB77,19,19 15560.703 Limits on tax benefits and claiming tax benefits. (1) Limits. (a)
16Except as provided in par. (b), the total tax benefits available to be allocated by the
17department under ss. 560.701 to 560.706 may not exceed the sum of the tax benefits
18remaining to be allocated under ss. 560.71 to 560.785, 560.797, 560.798, 560.7995,
19and 560.96 on the effective date of this paragraph .... [LRB inserts date].
SB77,19,2520 (b) The department may submit to the joint committee on finance a request in
21writing to exceed the total tax benefits specified in par. (a). The department shall
22submit with its request a justification for seeking an increase under this paragraph.
23The joint committee on finance, following its review, may approve or disapprove an
24increase in the total tax benefits available to be allocated under ss. 560.701 to
25560.706.
SB77,20,5
1(2) Authority to claim tax benefits. The department may authorize a person
2certified under s. 560.701 (2) to claim tax benefits only after the person has submitted
3a report to the department that documents to the satisfaction of the department that
4the person has complied with the terms of the contract under s. 560.701 (3) and the
5requirements of any applicable rules promulgated under s. 560.706 (2).
SB77,20,8 6(3) Notice of eligibility. The department shall provide to the person and to
7the department of revenue a notice of eligibility to receive tax benefits that reports
8the amount of tax benefits for which the person is eligible.
SB77, s. 51 9Section 51. 560.704 of the statutes is created to read:
SB77,20,14 10560.704 Eligible activities in economically distressed areas and
11benefiting members of targeted groups.
The department may authorize a
12person certified under s. 560.701 (2) to claim additional tax benefits under s. 560.703
13if, after conducting an investigation, the department determines any of the
14following:
SB77,20,18 15(1) The person conducts at least one eligible activity in an area designated by
16the department as economically distressed. In designating an area as economically
17distressed under this subsection, the department shall follow the methodology
18established by rule under s. 560.706 (2) (e).
SB77,20,21 19(2) The person conducts at least one eligible activity that benefits, creates,
20retains, or significantly upgrades full-time jobs for, that trains, or that reeducates,
21members of a targeted group.
SB77, s. 52 22Section 52. 560.705 of the statutes is created to read:
SB77,20,24 23560.705 Revocation of certification. The department shall revoke the
24certification of a person who does any of the following:
SB77,21,2
1(1) Supplies false or misleading information to obtain certification under s.
2560.701 (2).
SB77,21,4 3(2) Supplies false or misleading information to obtain tax benefits under s.
4560.703.
SB77,21,6 5(3) Leaves the state to conduct substantially the same business outside of the
6state.
SB77,21,8 7(4) Ceases operations in the state and does not renew operation of the business
8or a similar business within 12 months.
SB77, s. 53 9Section 53. 560.706 of the statutes is created to read:
SB77,21,11 10560.706 Responsibilities of the department. The department shall do all
11of the following:
SB77,21,15 12(1) Accountability. (a) Annually verify information submitted to the
13department of revenue under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637 by
14persons certified under s. 560.701 (2) and eligible to receive tax benefits under s.
15560.703.
SB77,21,1716 (b) Notify and obtain written approval from the secretary for any certification
17under sub. (2) (h).
SB77,21,18 18(2) Rules. Establish by rule all of the following:
SB77,21,2219 (a) A schedule of hourly wage ranges to be paid, and health insurance benefits
20to be provided, to an employee by a person certified under s. 560.701 (2) and the
21corresponding per employee tax benefit for which a person certified under s. 560.701
22(2) may be eligible.
SB77,22,323 (b) A definition of "significant investment of capital" for purposes of s. 560.702
24(2), together with a corresponding schedule of tax benefits for which a person who is
25certified under s. 560.701 (2) and who conducts a project described in s. 560.702 (2)

1may be eligible. The department shall include in the definition required under this
2paragraph a schedule of investments that takes into consideration the size or nature
3of the business.
SB77,22,74 (c) A definition of "significant investments in the training or reeducation of
5employees" for purposes of s. 560.702 (3), together with a corresponding schedule of
6tax benefits for which a person who is certified under s. 560.701 (2) and who conducts
7a project under s. 560.702 (3) may be eligible.
SB77,22,108 (d) A schedule of tax benefits for which a person who is certified under s.
9560.701 (2) and who conducts a project that will result in the location or retention
10of a person's corporate headquarters in Wisconsin may be eligible.
SB77,22,1411 (e) The methodology for designating an area as economically distressed under
12s. 560.704 (1). The methodology under this paragraph shall require the department
13to consider the most current data available for the area and for the state on the
14following indicators:
SB77,22,1515 1. Unemployment rate.
SB77,22,1716 2. Percentage of families with incomes below the poverty line established under
1742 USC 9902 (2).
SB77,22,1818 3. Median family income.
SB77,22,1919 4. Median per capita income.
SB77,22,2020 5. Average annual wage.
SB77,22,2121 6. Real property values.
SB77,22,2322 7. Other significant or irregular indicators of economic distress, such as a
23natural disaster.
SB77,23,3
1(f) A schedule of additional tax benefits for which a person who is certified
2under s. 560.701 (2) and who conducts an eligible activity described under s. 560.704
3may be eligible.
SB77,23,64 (g) Reporting requirements for minimum goals to be achieved by, and outcomes
5expected of a person certified under s. 560.701 (2) before that person may receive tax
6benefits under s. 560.703.
SB77,23,87 (h) Policies and criteria for certifying a person who may be eligible for tax
8benefits greater than or equal to $3,000,000.
SB77,23,99 (i) Procedures for implementing ss. 560.701 to 560.706.
SB77,23,16 10(3) Reporting. Annually, 6 months after the report has been submitted under
11s. 560.01 (2) (am), submit to the joint legislative audit committee and to the
12appropriate standing committees of the legislature under s. 13.172 (3) a
13comprehensive report assessing the program under ss. 560.701 to 560.706. The
14report under this subsection shall update the applicable information provided in the
15report under s. 560.01 (2) (am). The department shall make readily accessible to the
16public on an Internet-based system the information required under this subsection.
SB77, s. 54 17Section 54. 560.71 (4) of the statutes is created to read:
SB77,23,1918 560.71 (4) No development zone may be designated under this section after the
19effective date of this subsection .... [LRB inserts date].
SB77, s. 55 20Section 55. 560.737 (4) of the statutes is created to read:
SB77,23,2321 560.737 (4) No premises of a business incubator may be designated as part of
22a development zone under this section after the effective date of this subsection ....
23[LRB inserts date].
SB77, s. 56 24Section 56. 560.74 (1) of the statutes is amended to read:
SB77,24,6
1560.74 (1) At Except as provided under sub. (6), at any time after a
2development zone is designated by the department, a local governing body may
3submit an application to change the boundaries of the development zone. If the
4boundary change reduces the size of a development zone, the local governing body
5shall explain why the area excluded should no longer be in a development zone. The
6department may require the local governing body to submit additional information.
SB77, s. 57 7Section 57. 560.74 (6) of the statutes is created to read:
SB77,24,108 560.74 (6) The department may not accept any applications under sub. (1) to
9change the boundaries of a development zone designated under s. 560.71 on or after
10the effective date of this subsection .... [LRB inserts date].
SB77, s. 58 11Section 58. 560.745 (1) (b) of the statutes is amended to read:
SB77,24,1712 560.745 (1) (b) The local governing body may apply to the department for one
1360-month extension of the designation. The department shall promulgate rules
14establishing criteria for approving an extension of a designation of an area as a
15development zone under this subsection. No applications may be accepted by the
16department under this paragraph on or after the effective date of this paragraph ....
17[LRB inserts date].
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