AB40: Bill Text

AB40,1206,21 (3) Notice of eligibility. The department corporation shall provide to the person and to the department of revenue a notice of eligibility to receive tax benefits that reports the amount of tax benefits for which the person is eligible.

AB40, s. 3416 Section 3416. 560.704 of the statutes is renumbered 238.304, and 238.304 (intro.) and (1), as renumbered, are amended to read:

AB40,1207,3 238.304 Eligible activities in economically distressed areas and benefiting members of targeted groups. (intro.) The department corporation may authorize a person certified under s. 560.701 238.301 (2) to claim additional tax benefits under s. 560.703 238.303 if, after conducting an investigation, the department corporation determines any of the following:

AB40,1207,7 (1) The person conducts at least one eligible activity in an area designated by the department corporation as economically distressed. In designating an area as economically distressed under this subsection, the department corporation shall follow the methodology established by rule under s. 560.706 238.306 (2) (e).

AB40, s. 3417 Section 3417. 560.705 of the statutes is renumbered 238.305, and 238.305 (intro.), (1) and (2), as renumbered, are amended to read:

AB40,1207,11 238.305 Revocation of certification. (intro.) The department corporation shall revoke the certification of a person who does any of the following:

AB40,1207,13 (1) Supplies false or misleading information to obtain certification under s. 560.701 238.301 (2).

AB40,1207,15 (2) Supplies false or misleading information to obtain tax benefits under s. 560.703 238.303.

AB40, s. 3418 Section 3418. 560.706 of the statutes is renumbered 238.306, and 238.306 (intro.), (1) (a) and (b), (2) (a), (b), (c), (d), (e) (intro.), (f), (g), (h), (i) and (k) and (3), as renumbered, are amended to read:

AB40,1207,20 238.306 Responsibilities of the department corporation. (intro.) The department corporation shall do all of the following:

AB40,1207,23 (1) (a) Annually verify information submitted to the department of revenue under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637 by persons certified under s. 560.701 238.301 (2) and eligible to receive tax benefits under s. 560.703 238.303.

AB40,1207,25 (b) Notify and obtain written approval from the secretary chief executive officer of the corporation for any certification under sub. (2) (j).

AB40,1208,4 (2) (a) A schedule of hourly wage ranges to be paid, and health insurance benefits to be provided, to an employee by a person certified under s. 560.701 238.301 (2) and the corresponding per employee tax benefit for which a person certified under s. 560.701 238.301 (2) may be eligible.

AB40,1208,10 (b) A definition of "significant investment of capital" for purposes of s. 560.702 238.302 (2), together with a corresponding schedule of tax benefits for which a person who is certified under s. 560.701 238.301 (2) and who conducts a project described in s. 560.702 238.302 (2) may be eligible. The department corporation shall include in the definition required under this paragraph a schedule of investments that takes into consideration the size or nature of the business.

AB40,1208,14 (c) A definition of "significant investments in the training or reeducation of employees" for purposes of s. 560.702 238.302 (3), together with a corresponding schedule of tax benefits for which a person who is certified under s. 560.701 238.301 (2) and who conducts a project under s. 560.702 238.302 (3) may be eligible.

AB40,1208,17 (d) A schedule of tax benefits for which a person who is certified under s. 560.701 238.301 (2) and who conducts a project that will result in the location or retention of a person's corporate headquarters in Wisconsin may be eligible.

AB40,1208,21 (e) (intro.) The methodology for designating an area as economically distressed under s. 560.704 238.304 (1). The methodology under this paragraph shall require the department corporation to consider the most current data available for the area and for the state on the following indicators:

AB40,1208,24 (f) A schedule of additional tax benefits for which a person who is certified under s. 560.701 238.301 (2) and who conducts an eligible activity described under s. 560.704 238.304 may be eligible.

AB40,1209,3 (g) Reporting requirements, minimum benchmarks, and outcomes expected of a person certified under s. 560.701 238.301 (2) before that person may receive tax benefits under s. 560.703 238.303.

AB40,1209,5 (h) Policies, criteria, and methodology for allocating a portion of the tax benefits available under s. 560.703 238.303 to rural areas.

AB40,1209,7 (i) Policies, criteria, and methodology for allocating a portion of the tax benefits available under s. 560.703 238.303 to small businesses.

AB40,1209,8 (k) Procedures for implementing ss. 560.701 to 560.706 238.301 to 238.306.

AB40,1209,14 (3) Reporting. Annually, 6 months after the report has been submitted under s. 560.01 (2) (am) 238.07 (2), submit to the joint legislative audit committee and to the appropriate standing committees of the legislature under s. 13.172 (3) a comprehensive report assessing the program under ss. 560.701 to 560.706 238.301 to 238.306. The report under this subsection shall update the applicable information provided in the report under s. 560.01 (2) (am) 238.07 (2).

AB40, s. 3419 Section 3419. 560.71 of the statutes is renumbered 238.31, and 238.31 (1) (intro.), (ac), (am), (b), (d) and (e) (intro.), 3. and 4. a., c. and d., (1m) (intro.), (a) and (h), (2) and (3) (intro.), as renumbered, are amended to read:

AB40,1209,19 238.31 (1) (intro.) The department corporation may designate an area as a development zone if all of the following apply:

AB40,1209,21 (ac) The department corporation has invited a local governing body to nominate the area under s. 560.715 238.315.

AB40,1209,23 (am) A local governing body nominates the area as described in s. 560.72 238.32.

AB40,1209,25 (b) The department corporation has evaluated the local governing body's application as described in s. 560.725 238.325.

AB40,1210,2 (d) The area meets the applicable requirements under s. 560.735 or 560.737 238.335.

AB40,1210,3 (e) (intro.) The department corporation determines all of the following:

AB40,1210,6 3. That economic development in the area is not likely to occur or continue without the department's corporation's designation of the area as a development zone.

AB40,1210,9 4. a. The unemployment rate in the area is higher than the state average for the 18 months immediately preceding the date on which the application under s. 560.72 238.32 (2) or (3) was submitted to the department corporation.

AB40,1210,12 c. The percentage of households in the area receiving unemployment insurance under ch. 108, relief funded by a relief block grant under ch. 49, or aid to families with dependent children under s. 49.19 is higher than the state average.

AB40,1210,16 d. In the 36 months immediately preceding the date on which the application under s. 560.72 238.32 (2) or (3) was submitted to the department corporation, a number of workers in the area were permanently laid off by their employer or became unemployed as a result of a business action subject to s. 109.07 (1m).

AB40,1210,18 (1m) (intro.) In making a determination under sub. (1) (e), the department corporation shall consider all of the following:

AB40,1210,20 (a) The extent of poverty, unemployment, or other factors contributing to general economic hardship in the area.

AB40,1210,21 (h) Any other factors that the department corporation considers relevant.

AB40,1210,25 (2) In determining whether an area meets the requirements under sub. (1) (e) or s. 560.735 238.335, the department corporation may rely on any data provided by the local governing body which that the department corporation determines is relevant.

AB40,1211,1 (3) (intro.) The department corporation shall do all of the following:

AB40, s. 3420 Section 3420. 560.715 of the statutes is renumbered 238.315 and amended to read:

AB40,1211,7 238.315 Invitation to nominate area. If the department corporation determines that an area has experienced or is about to experience economic distress, the department corporation may invite local governing bodies in the area to nominate the area as a development zone.

AB40, s. 3421 Section 3421. 560.72 of the statutes is renumbered 238.32, and 238.32 (1) (intro.), (2) (intro.), (c), (d), (f) and (i), (3) and (5), as renumbered, are amended to read:

AB40,1211,13 238.32 (1) (intro.) A local governing body may nominate an area as a development zone, if the department corporation has invited the governing body to nominate the area under s. 560.715 238.315 and if the governing body does all of the following:

AB40,1211,16 (2) (intro.) A local governing body may nominate the area as a development zone by submitting an application to the department corporation in a form prescribed by the department corporation. The application shall include all of the following:

AB40,1211,18 (c) Evidence that the area meets at least 3 of the criteria under s. 560.71 238.31 (1) (e) 4.

AB40,1211,20 (d) Evidence that the area meets the applicable requirements of s. 560.735 238.335.

AB40,1211,22 (f) A description of past and present economic development activities in the area under local, state, or federal programs.

AB40,1211,23 (i) Any other information required by the department corporation.

AB40,1212,3 (3) Two or more local governing bodies may submit a joint application nominating an area as a development zone, subject to s. 560.735 238.335 (2), if each local governing body complies with subs. (1) and (2).

AB40,1212,6 (5) The department corporation may permit a local governing body to revise an application that the department corporation determines is inadequate or incomplete.

AB40, s. 3422 Section 3422. 560.725 of the statutes is renumbered 238.325 and amended to read:

AB40,1212,10 238.325 Evaluation by department corporation. (1) The department corporation shall evaluate applications received under s. 560.72 238.32 (2) and (3).

AB40,1212,16 (2) Subject to s. 560.735 238.335 (5), the department corporation may reduce the size of an area nominated as a development zone, if the department corporation determines the boundaries as proposed by the local governing body in an application under s. 560.72 238.32 (2) or (3) are inconsistent with the purpose of the development zone program. Any nominated area which is reduced under this subsection need not comply with s. 560.735 238.335 (1) and (4).

AB40,1212,21 (3) After evaluating an application submitted under s. 560.72 238.32 (2) or (3), the department corporation may approve the application, subject to any reduction in the size of the nominated area under sub. (2). If the department corporation approves the application, the department corporation shall designate the area as a development zone, subject to s. 560.71 238.31, and notify the local governing body.

AB40, s. 3423 Section 3423. 560.735 of the statutes is renumbered 238.335, and 238.335 (1) (a) and (c), (2), (5) (a) and (b), (6) (a) 1. and 2. and (c), (6r) and (7), as renumbered, are amended to read:

AB40,1213,2 238.335 (1) (a) The area contains less than 10% of the valuation of the property of the city, village, or town, as determined under s. 70.57, in which the area is located.

AB40,1213,5 (c) If the area is located within a village, town, or city other than a 1st class city, the population of the area is not less than 1,000 nor more than 10,000, as estimated under s. 16.96.

AB40,1213,8 (2) If an area is located within the boundaries of 2 or more cities, villages, or towns, the property value of the cities, villages, or towns under sub. (1) (a) shall be combined for the purposes of sub. (1).

AB40,1213,11 (5) (a) The area has a continuous border following natural or man-made boundaries such as streets, highways, rivers, municipal limits, or limits of a reservation.

AB40,1213,12 (b) The area consists of contiguous blocks, census blocks, or similar units.

AB40,1213,15 (6) (a) 1. Each of the areas has a continuous border following natural or man-made boundaries and consists of contiguous blocks, census blocks , or similar units.

AB40,1213,16 2. Each area meets at least 3 of the criteria listed in s. 560.71 238.31 (1) (e) 4.

AB40,1213,19 (c) If an application is submitted by the governing body of a county under s. 560.72 238.32 (2) or (3), up to 4 separate areas may be nominated or designated as one development zone, if par. (a) 1. to 3. applies.

AB40,1213,24 (6r) Subject to the population limit under sub. (6m), if an area that is nominated or designated as a development zone is comprised of one or more entire counties and a city, village, or town is partially located in the area and partially located outside of the area, the entire city, village, or town shall be part of the nominated or designated area.

AB40,1214,3 (7) The department corporation may waive the requirements of this section in a particular case, if the department corporation determines that application of the requirement is impractical with respect to a particular development zone.

AB40, s. 3424 Section 3424. 560.737 of the statutes is repealed.

AB40, s. 3425 Section 3425. 560.74 of the statutes is renumbered 238.34, and 238.34 (1), (2), (3) (intro.) and (a), (4), (5) and (6), as renumbered, are amended to read:

AB40,1214,12 238.34 (1) Except as provided under sub. (6), at any time after a development zone is designated by the department corporation, a local governing body may submit an application to change the boundaries of the development zone. If the boundary change reduces the size of a development zone, the local governing body shall explain why the area excluded should no longer be in a development zone. The department corporation may require the local governing body to submit additional information.

AB40,1214,16 (2) The department corporation may approve an application for a boundary change if the development zone, as affected by the boundary changes, meets the applicable requirements of s. 560.735 238.335 and 3 of the criteria under s. 560.71 238.31 (1) (e) 4.

AB40,1214,18 (3) (intro.) If the department corporation approves an application for a boundary change under sub. (2), it shall do all of the following:

AB40,1214,20 (a) Redetermine the limit on the tax benefits for the development zone established under s. 560.745 238.345 (2) (a).

AB40,1214,23 (4) The change in the boundaries or tax benefits limit of a development zone shall be effective on the day the department corporation notifies the local governing body under sub. (3) (b).

AB40,1215,3 (5) No change in the boundaries of a development zone may affect the duration of an area as a development zone under s. 560.745 238.345 (1) (a). The department corporation may consider a change in the boundary of a development zone when evaluating an application for an extension of the designation of an area as a development zone under s. 560.745 238.345 (1) (b).

AB40,1215,6 (6) The department corporation may not accept any applications under sub. (1) to change the boundaries of a development zone designated under s. 560.71 238.31 on or after March 6, 2009.

AB40, s. 3426 Section 3426. 560.745 of the statutes is renumbered 238.345, and 238.345 (1) (a) and (b), (2) (a), (am), (b), (c) 1. and 2. and (d) and (3), as renumbered, are amended to read:

AB40,1215,12 238.345 (1) (a) The designation of an area as a development zone shall be effective for 240 months, beginning on the day the department notifies the local governing body under s. 560.725 238.325 (3) of the designation.

AB40,1215,18 (b) The local governing body may apply to the department corporation for one 60-month extension of the designation. The department corporation shall promulgate adopt rules establishing criteria for approving an extension of a designation of an area as a development zone under this subsection. No applications may be accepted by the department corporation under this paragraph on or after March 6, 2009.

AB40,1215,21 (2) (a) When the department corporation designates a development zone under s. 560.71 238.31, it shall establish a limit for tax benefits for the development zone determined by allocating to the development zone a portion of $38,155,000.

AB40,1215,25 (am) Notwithstanding par. (a), the department corporation may increase the established limit for tax benefits for a development zone. The department corporation may not increase the limit for tax benefits established for any development zone designated under s. 560.71 238.31 on or after March 6, 2009.

AB40,1216,2 (b) Annually the department corporation shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each development zone.

AB40,1216,5 (c) 1. Ninety days after the day on which the department corporation determines that the forgone tax revenues under par. (b) will equal or exceed the limit for the development zone established under par. (a) or (am).

AB40,1216,7 2. The day that the department corporation withdraws its designation of an area as a development zone under sub. (3).

AB40,1216,9 (d) The department corporation shall immediately notify the local governing body of a change in the expiration date of the development zone under par. (c).

AB40,1216,11 (3) The department corporation may withdraw the designation of an area as a development zone if any of the following apply applies:

AB40,1216,15 (a) No person is certified as eligible to receive tax benefits under s. 560.765 238.365 (3) during the 12-month period beginning on the day the area is designated as a development zone and the department corporation determines that the local governing body that nominated the zone is not in compliance with s. 560.763 238.363.

AB40,1216,18 (b) No person is certified as eligible to receive tax benefits under s. 560.765 238.365 (3) during the 24-month period beginning on the day the area is designated a development zone.

AB40, s. 3427 Section 3427. 560.75 of the statutes is renumbered 238.35, and 238.35 (intro.), (6), (7), (8) and (10), as renumbered, are amended to read:

AB40,1216,22 238.35 Additional duties of the department corporation. (intro.) The department corporation shall do all of the following:

AB40,1217,4 (6) Notify University of Wisconsin Wisconsin-Madison and University of Wisconsin System small business development centers, the Wisconsin housing and development centers, the central administration of the University of Wisconsin-Madison campus and all University of Wisconsin System campuses and regional planning commissions about the development zone program and encourage those entities to provide advice to the department corporation or local governing bodies on ways to improve the development zone program.