Amendment ASA1-SB463

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 2011 SENATE BILL 463

March 15, 2012 - Offered by Representatives Barca, Seidel, Pasch, Danou, Sinicki, Turner, Hebl, Vruwink, Clark, Bernard Schaber, Milroy, Molepske Jr and Jorgensen.

SB463-ASA1,1,13 An Act to repeal 71.07 (5d) (c) 1.; to amend 16.413 (1) (b), 16.413 (1) (d), 16.413 (3) (a) (intro.), 71.07 (5b) (d) 1., 71.07 (5b) (d) 3., 71.07 (5d) (d) 1., 71.07 (5d) (d) 2., 71.10 (4) (gwb), 71.10 (4) (gx), 71.10 (4) (i), 71.28 (5b) (d) 1., 71.28 (5b) (d) 3., 71.30 (3) (eop), 71.30 (3) (f), 71.47 (5b) (d) 1., 71.47 (5b) (d) 3., 71.49 (1) (eop), 71.49 (1) (f), 73.03 (63), 238.15 (1) (intro.), 238.15 (1) (h), 238.15 (1) (j), 238.15 (1) (km) and 238.15 (3) (d) (intro.); and to create 16.413 (3) (a) 6. and 7., 16.413 (3) (c), (d) and (e), 20.835 (2) (ba), 71.07 (5b) (d) 1m., 71.07 (5b) (d) 4., 71.07 (5d) (d) 2m., 71.07 (5d) (d) 5., 71.28 (5b) (d) 1m., 71.28 (5b) (d) 4., 71.47 (5b) (d) 1m., 71.47 (5b) (d) 4. and 238.15 (1) (m) of the statutes; relating to: the angel investment and early stage seed investment tax credit programs, making changes to disclosure requirements regarding state agency expenditures concerning economic development programs, requiring the exercise of rule-making authority, making an appropriation, and providing a penalty.

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

SB463-ASA1, s. 1 Section 1. 16.413 (1) (b) of the statutes, as created by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,2,8 16.413 (1) (b) "Grant" means a payment made to a person, other than aids to individuals and organizations and local assistance and the payment of salaries and fringe benefits for state employees an entity, including a public utility as defined in s. 196.01 (5) or a sewerage system operator as defined in s. 196.04 (4) (a). "Grant" includes a loan and any tax credit, whether refundable or nonrefundable, that is issued to an entity.

SB463-ASA1, s. 2 Section 2. 16.413 (1) (d) of the statutes, as created by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,2,17 16.413 (1) (d) "State agency" has the meaning given in s. 20.001 (1) means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts and including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 232, 233, 234, 235, 237, 238, or 279. "State agency" includes a local governmental unit, as defined in s. 16.97 (7).

SB463-ASA1, s. 3 Section 3. 16.413 (3) (a) (intro.) of the statutes, as created by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,2,23 16.413 (3) (a) (intro.) The department shall ensure that all of the following information relating to each grant that exceeds $100 made by a state agency or contract entered into by a state agency is available for inspection on a searchable Internet Web site maintained by the department:

SB463-ASA1, s. 4 Section 4. 16.413 (3) (a) 6. and 7. of the statutes are created to read:

SB463-ASA1,3,8 16.413 (3) (a) 6. With respect to any grant that is related to an economic development program, as defined in s. 238.01 (3), an accounting by job classification of the compensation, including benefits and bonuses or other incentive pay, that the grant recipient paid to each of its employees in the immediately preceding fiscal year; and an accounting of the percentage and dollar amount of increase in compensation, including benefits and bonuses or other incentive pay, for each employee in the immediately preceding fiscal year relative to the fiscal year prior to that year.

SB463-ASA1,3,13 7. With respect to any grant that is related to an economic development program, as defined in s. 238.01 (3), once a grant recipient has spent a grant from a state agency, a verified statement describing the recipient's expenditures of grant funds, signed by both an independent certified public accountant and the director or principal officer of the recipient that attests to the accuracy of the verified statement.

SB463-ASA1, s. 5 Section 5. 16.413 (3) (c), (d) and (e) of the statutes are created to read:

SB463-ASA1,3,17 16.413 (3) (c) 1. Each state agency that makes a grant for which a verified statement is required under par. (a) 7. shall make that verified statement available for inspection on an Internet Web site maintained by the state agency.

SB463-ASA1,3,22 2. Each grant recipient for which a verified statement is required under par. (a) 7. and that maintained an Internet Web site at any time during the 12 months preceding the recipient's receipt of that grant, shall, for a period of at least 5 years, make the verified statement signed by the grant recipient under par. (a) 7. available on an Internet Web site maintained by the grant recipient.

SB463-ASA1,4,3 3. The department shall attempt to ensure coordination between the department, the Wisconsin Economic Development Corporation, any other state agency that administers economic development programs, as defined in s. 238.01 (3), and the federal government concerning the award of grants under those economic development programs and the disclosures required under this subsection with respect to those economic development programs.

SB463-ASA1,4,9 (d) Each state agency shall be responsible for, and shall establish by rule policies and procedures for, the detection and investigation of misuse of grants, and the use of fraud or deceit to obtain grants, from the state agency. If a state agency detects any misuse of a state grant or fraud, the state agency shall report that misuse or fraud to the department of justice for investigation, including criminal investigation.

SB463-ASA1,4,13 (e) If, after investigation and an opportunity for hearing, a state agency determines that a grant recipient has misused the grant or obtained or attempted to obtain the grant through fraud or deceit, the state agency may do any of the following:

SB463-ASA1,4,14 1. Recover payments made to the recipient.

SB463-ASA1,4,15 2. Withhold payments to be made to the recipient.

SB463-ASA1,4,16 3. Assess a forfeiture against the recipient.

SB463-ASA1, s. 6 Section 6. 20.835 (2) (ba) of the statutes is created to read:

SB463-ASA1,4,20 20.835 (2) (ba) Early stage seed and angel investment credits. A sum sufficient to make the payments under ss. 71.07 (5b) (d) 4. and (5d) (d) 5., 71.28 (5b) (d) 4., and 71.47 (5b) (d) 4.

SB463-ASA1, s. 7 Section 7. 71.07 (5b) (d) 1. of the statutes is amended to read:

SB463-ASA1,4,24 71.07 (5b) (d) 1. Section For taxable years beginning before January 1, 2012, s. 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB463-ASA1, s. 8 Section 8. 71.07 (5b) (d) 1m. of the statutes is created to read:

SB463-ASA1,5,3 71.07 (5b) (d) 1m. For taxable years beginning after December 31, 2011, s. 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB463-ASA1, s. 9 Section 9. 71.07 (5b) (d) 3. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,5,10 71.07 (5b) (d) 3. For Except as provided under s. 238.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB463-ASA1, s. 10 Section 10. 71.07 (5b) (d) 4. of the statutes is created to read:

SB463-ASA1,5,17 71.07 (5b) (d) 4. For taxable years beginning after December 31, 2011, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (ba).

SB463-ASA1, s. 11 Section 11. 71.07 (5d) (c) 1. of the statutes is repealed.

SB463-ASA1, s. 12 Section 12. 71.07 (5d) (d) 1. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,5,25 71.07 (5d) (d) 1. For Except as provided under s. 238.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB463-ASA1, s. 13 Section 13. 71.07 (5d) (d) 2. of the statutes is amended to read:

SB463-ASA1,6,4 71.07 (5d) (d) 2. Section For taxable years beginning before January 1, 2012, s. 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB463-ASA1, s. 14 Section 14. 71.07 (5d) (d) 2m. of the statutes is created to read:

SB463-ASA1,6,8 71.07 (5d) (d) 2m. For taxable years beginning after December 31, 2011, s. 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB463-ASA1, s. 15 Section 15. 71.07 (5d) (d) 5. of the statutes is created to read:

SB463-ASA1,6,15 71.07 (5d) (d) 5. For taxable years beginning after December 31, 2011, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.02 or 71.08, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (ba).

SB463-ASA1, s. 16 Section 16. 71.10 (4) (gwb) of the statutes is amended to read:

SB463-ASA1,6,18 71.10 (4) (gwb) Early stage seed investment credit under s. 71.07 (5b), except as provided under par. (i).

SB463-ASA1, s. 17 Section 17. 71.10 (4) (gx) of the statutes is amended to read:

SB463-ASA1,6,21 71.10 (4) (gx) Angel investment credit under s. 71.07 (5d), except as provided under par. (i).

SB463-ASA1, s. 18 Section 18. 71.10 (4) (i) of the statutes is amended to read:

SB463-ASA1,7,11 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s. 71.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s. 71.07 (3rm), food processing plant and food warehouse investment credit under s. 71.07 (3rn), early stage seed investment credit under s. 71.07 (5b) (d) 4., angel investment credit under s. 71.07 (5d) (d) 5., film production services credit under s. 71.07 (5f), film production company investment credit under s. 71.07 (5h), veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), beginning farmer and farm asset owner tax credit under s. 71.07 (8r), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB463-ASA1, s. 19 Section 19. 71.28 (5b) (d) 1. of the statutes is amended to read:

SB463-ASA1,7,15 71.28 (5b) (d) 1. Subsection For taxable years beginning before January 1, 2012, sub. (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB463-ASA1, s. 20 Section 20. 71.28 (5b) (d) 1m. of the statutes is created to read:

SB463-ASA1,7,19 71.28 (5b) (d) 1m. For taxable years beginning after December 31, 2011, sub. (4) (e), (g), and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB463-ASA1, s. 21 Section 21. 71.28 (5b) (d) 3. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,8,2 71.28 (5b) (d) 3. For Except as provided under s. 238.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB463-ASA1, s. 22 Section 22. 71.28 (5b) (d) 4. of the statutes is created to read:

SB463-ASA1,8,9 71.28 (5b) (d) 4. For taxable years beginning after December 31, 2011, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.23, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (ba).

SB463-ASA1, s. 23 Section 23. 71.30 (3) (eop) of the statutes is amended to read:

SB463-ASA1,8,12 71.30 (3) (eop) Early stage seed investment credit under s. 71.28 (5b), except as provided under par. (f).

SB463-ASA1, s. 24 Section 24. 71.30 (3) (f) of the statutes is amended to read:

SB463-ASA1,8,23 71.30 (3) (f) The total of farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), dairy manufacturing facility investment credit under s. 71.28 (3p), jobs credit under s. 71.28 (3q), meat processing facility investment credit under s. 71.28 (3r), woody biomass harvesting and processing credit under s. 71.28 (3rm), food processing plant and food warehouse investment credit under s. 71.28 (3rn), enterprise zone jobs credit under s. 71.28 (3w), early stage seed investment credit under s. 71.28 (5b) (d) 4., film production services credit under s. 71.28 (5f), film production company investment credit under s. 71.28 (5h), beginning farmer and farm asset owner tax credit under s. 71.28 (8r), and estimated tax payments under s. 71.29.

SB463-ASA1, s. 25 Section 25. 71.47 (5b) (d) 1. of the statutes is amended to read:

SB463-ASA1,9,3 71.47 (5b) (d) 1. Section For taxable years beginning before January 1, 2012, s. 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB463-ASA1, s. 26 Section 26. 71.47 (5b) (d) 1m. of the statutes is created to read:

SB463-ASA1,9,7 71.47 (5b) (d) 1m. For taxable years beginning after December 31, 2011, s. 71.28 (4) (e), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB463-ASA1, s. 27 Section 27. 71.47 (5b) (d) 3. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,9,14 71.47 (5b) (d) 3. For Except as provided under s. 238.15 (3) (d) (intro.), for investments made after December 31, 2007, if an investment for which a claimant claims a credit under par. (b) is held by the claimant for less than 3 years, the claimant shall pay to the department, in the manner prescribed by the department, the amount of the credit that the claimant received related to the investment.

SB463-ASA1, s. 28 Section 28. 71.47 (5b) (d) 4. of the statutes is created to read:

SB463-ASA1,9,21 71.47 (5b) (d) 4. For taxable years beginning after December 31, 2011, if the allowable amount of the claim under par. (b) exceeds the tax otherwise due under s. 71.43, the amount of the claim not used to offset the tax due shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation account under s. 20.835 (2) (ba).

SB463-ASA1, s. 29 Section 29. 71.49 (1) (eop) of the statutes is amended to read:

SB463-ASA1,9,24 71.49 (1) (eop) Early stage seed investment credit under s. 71.47 (5b), except as provided under par. (f).

SB463-ASA1, s. 30 Section 30. 71.49 (1) (f) of the statutes is amended to read:

SB463-ASA1,10,10 71.49 (1) (f) The total of farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p), jobs credit under s. 71.47 (3q), meat processing facility investment credit under s. 71.47 (3r), woody biomass harvesting and processing credit under s. 71.47 (3rm), food processing plant and food warehouse investment credit under s. 71.47 (3rn), enterprise zone jobs credit under s. 71.47 (3w), early stage seed investment credit under s. 71.47 (5b) (d) 4., film production services credit under s. 71.47 (5f), film production company investment credit under s. 71.47 (5h), beginning farmer and farm asset owner tax credit under s. 71.47 (8r), and estimated tax payments under s. 71.48.

SB463-ASA1, s. 31 Section 31. 73.03 (63) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,10,21 73.03 (63) Notwithstanding the amount limitations specified under s. 71.07 (5d) (c) 1. and s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats., in consultation with the department of commerce or the Wisconsin Economic Development Corporation, to carry forward to subsequent taxable years unclaimed credit amounts of the early stage seed investment credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 and the angel investment credit under s. 71.07 (5d). Annually, no later than July 1, the department of commerce or the Wisconsin Economic Development Corporation shall submit to the department of revenue its recommendations for the carry forward of credit amounts as provided under this subsection.

SB463-ASA1, s. 32 Section 32. 238.15 (1) (intro.) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,11,7 238.15 (1) Angel investment tax credits. (intro.) The corporation shall implement a program to certify businesses for purposes of s. 71.07 (5d). A business desiring certification shall submit an application to the corporation in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the corporation may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). A business may be certified under this subsection, and may maintain such certification, The corporation may certify or recertify a business for purposes of s. 71.07 (5d) only if the business satisfies all of the following conditions:

SB463-ASA1, s. 33 Section 33. 238.15 (1) (h) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,11,11 238.15 (1) (h) It At the time it is initially certified under this subsection, it has less than 100 employees.

SB463-ASA1, s. 34 Section 34. 238.15 (1) (j) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,11,15 238.15 (1) (j) It At the time it is initially certified under this subsection, it has been in operation in this state for not more than 10 consecutive years.

SB463-ASA1, s. 35 Section 35. 238.15 (1) (km) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

SB463-ASA1,11,20 238.15 (1) (km) It has not received aggregate private equity investment in cash of more than $10,000,000 prior to being before it is initially certified under this subsection.

SB463-ASA1, s. 36 Section 36. 238.15 (1) (m) of the statutes is created to read:

SB463-ASA1,12,3 238.15 (1) (m) 1. It agrees that it will not relocate outside of this state during the 3 years after it receives an investment for which a person may claim a tax credit under s. 71.07 (5d) and agrees to pay the corporation a penalty, in an amount determined under subd. 2., if the business relocates outside of this state during that 3-year period. For the purposes of this paragraph, a business relocates outside of this state when the business locates more than 51 percent of any of the following outside of this state:

SB463-ASA1,12,4 a. The business's employees.

SB463-ASA1,12,5 b. The business's total payroll.

SB463-ASA1,12,7 c. The activities of the business's headquarters, as determined by the corporation.