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2011 - 2012 LEGISLATURE
February 22, 2012 - Introduced by Representatives Litjens, Brooks, Endsley,
Fields, Kerkman, Marklein, Molepske Jr, Petryk
and Spanbauer,
cosponsored by Senators Leibham, Lassa and Jauch. Referred to Committee
on Jobs, Economy and Small Business.
AB607,2,2 1An Act to repeal 234.01 (4n) (a) 3m. a. to d., 234.01 (4n) (a) 3m. e., 234.01 (4n)
2(b) 1., 234.01 (4n) (b) 2., 234.65 (1) (e), 234.65 (1) (f), 234.65 (1) (gm), 234.65 (1)
3(gp), 234.65 (2) (a) 2., 234.65 (2) (c), 234.65 (3) (a), 234.65 (3) (b), 234.65 (3) (d),
4234.65 (3) (g), 234.65 (5) (b), 238.11 (3) and 238.11 (5) (b); to renumber 234.65
5(5) (a), 234.65 (5) (c), 234.65 (5) (d) and 234.65 (5) (e); to renumber and amend
6234.01 (4n) (a) 3m. (intro.), 234.01 (4n) (b) (intro.) and 234.65 (5) (intro.); to
7consolidate, renumber and amend
238.11 (5) (intro.) and (a); to amend
866.1103 (4m) (a) 2., 234.01 (4n) (a) 1., 234.01 (4n) (a) 3., 234.01 (4n) (a) 4., 234.65
9(1) (a), 234.65 (1) (c), 234.65 (1) (g), 234.65 (1m), 234.65 (2) (a) 4., 234.65 (3)
10(intro.), 234.65 (3) (am), 234.65 (3) (dg), 234.65 (3g), 234.65 (3m), 234.65 (3r),
11238.11 (1) and 238.25; and to create 234.65 (3) (bm) of the statutes; relating

1to:
economic development activities of the Wisconsin Housing and Economic
2Development Authority.
Analysis by the Legislative Reference Bureau
This bill makes several changes to the laws governing economic development
activities conducted by the Wisconsin Housing and Economic Development
Authority (WHEDA).
Under current law, WHEDA may issue negotiable bonds and notes to finance
economic development activities, including making economic development loans to
finance economic development projects. Current law defines an economic
development project to include land, plant, or equipment for facilities for all of the
following: 1) manufacturing activities specified under a standard industrial
classification manual published by the federal government printing office; 2) the
retail sale of goods or services to consumers if the facilities are located in certain
areas such as a tax incremental district, an environmental remediation tax
incremental district, or a business incubator; 3) research and development activities
relating to production of tangible products; and 4) activities of a long-term nature,
such as research and development performed by firms engaged in manufacturing
activities or firms engaged in research and development of manufactured products.
This bill changes those portions of the definition of economic development project to
include land, plant, or equipment for facilities for the following: 1) manufacturing or
commercial real estate activities; 2) the retail sale of goods or services; 3) research
and development activities; and 4) activities of a long-term nature, such as research
and development or long-term working capital.
Current law permits WHEDA to issue not more than $200,000,000 in aggregate
principal amount of bonds and notes for economic development activities. Current
law also imposes certain limits on the total amounts of bonds and notes issued by
WHEDA for other purposes, including for housing rehabilitation and for veterans
housing loans and other veterans assistance programs, but provides that those limits
do not apply to bonds and notes issued by WHEDA for economic development
activities. This bill permits WHEDA to issue not more than $150,000,000 in
aggregate principal amount of bonds and notes for economic development activities
in any fiscal year. The bill also eliminates the exception to the applicability of certain
limits on the amounts of bonds and notes issued by WHEDA for bonds and notes
issued for economic development activities.
2011 Wisconsin Act 7 created the Wisconsin Economic Development
Corporation (WEDC), a public entity authorized to develop and implement programs
to provide support, expertise, and financial assistance to companies, including
businesses seeking to begin or expand operations in this state, and to develop and
implement other programs related to economic development in this state. Prior to
the creation of WEDC, the Department of Commerce (Commerce) had responsibility
over many economic development activities in Wisconsin. 2011 Wisconsin Act 32 (Act
32) transferred responsibility over economic development activities from Commerce

to WEDC, including a requirement that WEDC consent to the issuance by WHEDA
of bonds and notes to finance economic development activities. Act 32 also required
WEDC to adopt rules to implement the financing of economic development loans by
WHEDA and required businesses that received an economic development loan from
WHEDA to submit a report to WEDC. Current law prohibits WHEDA from
financing an economic development loan unless the business that would have
received the loan notified WEDC of its intent to sign the contract. This bill eliminates
the role of WEDC in overseeing the identified aspects of WHEDA's economic
development activities and requires a business that receives an economic
development loan to report directly to WHEDA.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB607, s. 1 1Section 1. 66.1103 (4m) (a) 2. of the statutes, as affected by 2011 Wisconsin
2Act 32
, is amended to read:
AB607,3,83 66.1103 (4m) (a) 2. The municipality or county has received an estimate issued
4under s. 238.11 (5) (a), and the Wisconsin Economic Development Corporation has
5estimated whether the project which the municipality or county would finance under
6the revenue agreement is expected to eliminate, create, or maintain jobs on the
7project site and elsewhere in this state and the net number of jobs expected to be
8eliminated, created, or maintained as a result of the project.
AB607, s. 2 9Section 2. 234.01 (4n) (a) 1. of the statutes is amended to read:
AB607,3,1310 234.01 (4n) (a) 1. Facilities for manufacturing or commercial real estate
11activities specified under division D, standard industrial classification manual,
12federal office of management and budget, as published by the federal government
13printing office
.
AB607, s. 3 14Section 3. 234.01 (4n) (a) 3. of the statutes is amended to read:
AB607,3,1615 234.01 (4n) (a) 3. Facilities for the storage or distribution of products of
16manufacturing activities under subd. 1., materials, components, or equipment.
AB607, s. 4
1Section 4. 234.01 (4n) (a) 3m. (intro.) of the statutes is renumbered 234.01 (4n)
2(a) 3m. and amended to read:
AB607,4,43 234.01 (4n) (a) 3m. Facilities for the retail sale of goods or services to consumers
4if any of the following applies:
.
AB607, s. 5 5Section 5. 234.01 (4n) (a) 3m. a. to d. of the statutes are repealed.
AB607, s. 6 6Section 6. 234.01 (4n) (a) 3m. e. of the statutes, as affected by 2011 Wisconsin
7Act 32
, is repealed.
AB607, s. 7 8Section 7. 234.01 (4n) (a) 4. of the statutes is amended to read:
AB607,4,109 234.01 (4n) (a) 4. Facilities for research and development activities relating to
10production of tangible products
.
AB607, s. 8 11Section 8. 234.01 (4n) (b) (intro.) of the statutes is renumbered 234.01 (4n) (b)
12and amended to read:
AB607,4,1413 234.01 (4n) (b) Activities of a long-term nature, such as research and
14development, performed by any of the following: or long-term working capital.
AB607, s. 9 15Section 9. 234.01 (4n) (b) 1. of the statutes is repealed.
AB607, s. 10 16Section 10. 234.01 (4n) (b) 2. of the statutes is repealed.
AB607, s. 11 17Section 11. 234.65 (1) (a) of the statutes, as affected by 2011 Wisconsin Act 32,
18is amended to read:
AB607,4,2219 234.65 (1) (a) With the consent of the Wisconsin Economic Development
20Corporation and subject to par. (f), the
The authority may issue its negotiable bonds
21and notes to finance its economic development activities authorized or required
22under this chapter, including financing economic development loans.
AB607, s. 12 23Section 12. 234.65 (1) (c) of the statutes is amended to read:
AB607,5,224 234.65 (1) (c) The authority may not issue more than $200,000,000
25$150,000,000 in aggregate principal amount of bonds and notes under this section

1in any fiscal year, excluding bonds and notes issued to refund outstanding bonds or
2notes issued under this section.
AB607, s. 13 3Section 13. 234.65 (1) (e) of the statutes is repealed.
AB607, s. 14 4Section 14. 234.65 (1) (f) of the statutes, as affected by 2011 Wisconsin Act 32,
5is repealed.
AB607, s. 15 6Section 15. 234.65 (1) (g) of the statutes is amended to read:
AB607,5,137 234.65 (1) (g) In granting loans under this section the authority shall give
8preference to businesses which are more than 50% owned or controlled by women or
9minorities, to businesses that, together with all of their affiliates, subsidiaries and
10parent companies, have current gross annual sales of $5,000,000 or less or that
11employ 25 250 or fewer persons and to new businesses that have less than 50% of
12their ownership held or controlled by another business and have their principal
13business operations in this state.
AB607, s. 16 14Section 16. 234.65 (1) (gm) of the statutes is repealed.
AB607, s. 17 15Section 17. 234.65 (1) (gp) of the statutes is repealed.
AB607, s. 18 16Section 18. 234.65 (1m) of the statutes, as affected by 2011 Wisconsin Act 32,
17is amended to read:
AB607,5,2018 234.65 (1m) The Wisconsin Economic Development Corporation authority
19shall, in consultation with the authority, adopt rules and procedures to implement
20sub. (3).
AB607, s. 19 21Section 19. 234.65 (2) (a) 2. of the statutes is repealed.
AB607, s. 20 22Section 20. 234.65 (2) (a) 4. of the statutes is amended to read:
AB607,5,2423 234.65 (2) (a) 4. The number of financial institutions participating in the
24economic development loan program project.
AB607, s. 21 25Section 21. 234.65 (2) (c) of the statutes is repealed.
AB607, s. 22
1Section 22. 234.65 (3) (intro.) of the statutes is amended to read:
AB607,6,32 234.65 (3) (intro.) Except as provided in sub. (3g), the The authority may
3finance an economic development loan only if all of the following conditions are met:
AB607, s. 23 4Section 23. 234.65 (3) (a) of the statutes, as affected by 2011 Wisconsin Act 32,
5is repealed.
AB607, s. 24 6Section 24. 234.65 (3) (am) of the statutes, as affected by 2011 Wisconsin Act
732
, is amended to read:
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