Amendment SA9-SSA1-SB21

2015 - 2016 LEGISLATURE

SENATE AMENDMENT 9, TO SENATE SUBSTITUTE AMENDMENT 1, TO SENATE BILL 21

July 7, 2015 - Offered by Senators Lassa, Hansen, Wirch, L. Taylor, Ringhand, Bewley, Harris Dodd, Vinehout, Miller, Erpenbach, Risser and Shilling.

SB21-SSA1-SA9,1,1 At the locations indicated, amend the substitute amendment as follows:

SB21-SSA1-SA9,1,2 1. At the appropriate places, insert all of the following:

SB21-SSA1-SA9,1,4 " Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB21-SSA1-SA9,2 Section 2. 20.292 (1) (aj) of the statutes is created to read:

SB21-SSA1-SA9,2,3 20.292 (1) (aj) Workforce growth program. The amounts in the schedule for grants to technical college district boards under s. 38.39.

SB21-SSA1-SA9,3 Section 3. 20.292 (1) (fd) of the statutes is created to read:

SB21-SSA1-SA9,2,7 20.292 (1) (fd) Dual enrollment opportunity grants. The amounts in the schedule for grants to technical college district boards under s. 38.04 (33). No moneys may be encumbered under this paragraph after June 30, 2017.

SB21-SSA1-SA9,4 Section 4. 20.292 (1) (fh) of the statutes is created to read:

SB21-SSA1-SA9,2,10 20.292 (1) (fh) Innovation grants. The amounts in the schedule for grants to technical college faculty, staff, and students under s. 38.04 (34).

SB21-SSA1-SA9,5 Section 5. 20.292 (1) (fj) of the statutes is created to read:

SB21-SSA1-SA9,2,14 20.292 (1) (fj) Veterans success grants. The amounts in the schedule for grants to technical college district boards under s. 38.04 (35). No moneys may be encumbered under this paragraph after June 30, 2019.

SB21-SSA1-SA9,6 Section 6. 38.04 (33) of the statutes is created to read:

SB21-SSA1-SA9,2,17 38.04 (33) Dual enrollment opportunity grants. (a) In this subsection, "dual enrollment programs" has the meaning given in s. 38.28 (1m) (am).

SB21-SSA1-SA9,2,21 (b) From the appropriation under s. 20.292 (1) (fd), the board shall award grants to district boards to expand dual enrollment programs or create new dual enrollment programs. No grant may be awarded under this paragraph after June 30, 2017.

SB21-SSA1-SA9,7 Section 7. 38.04 (34) of the statutes is created to read:

SB21-SSA1-SA9,3,5 38.04 (34) Innovation grants. From the appropriation under s. 20.292 (1) (fh), the board shall award grants to technical college faculty, staff, and students to assist such persons in commercializing and bringing to market innovative technology, products, and processes developed at technical colleges.

SB21-SSA1-SA9,8 Section 8. 38.04 (35) of the statutes is created to read:

SB21-SSA1-SA9,3,8 38.04 (35) Veterans success grants. (a) In this subsection, "veteran" has the meaning given in s. 38.24 (8) (a) 1r.

SB21-SSA1-SA9,3,12 (b) From the appropriation under s. 20.292 (1) (fj), the board shall award grants to district boards to expand existing efforts and implement additional strategies to assist veterans in a successful transition to college and careers. No grants may be awarded under this subsection after June 30, 2019.

SB21-SSA1-SA9,9 Section 9. 38.28 (1m) (a) 1. of the statutes is amended to read:

SB21-SSA1-SA9,3,22 38.28 (1m) (a) 1. "District aidable cost" means the annual cost of operating a technical college district, including debt service charges for district bonds and promissory notes for building programs or capital equipment, but excluding all expenditures relating to auxiliary enterprises and community service programs, all expenditures funded by or reimbursed with federal revenues, all receipts under ss. 38.04 (33), (34), and (35), 38.12 (9), 38.14 (3) and (9), 38.39, 118.15 (2) (a), and 118.55 (7r), all receipts from grants awarded under ss. 38.04 (8), (28), and (31), 38.14 (11), 38.26, 38.27, 38.33, and 38.38, all fees collected under s. 38.24, and driver education and chauffeur training aids.

SB21-SSA1-SA9,10 Section 10. 38.39 of the statutes is created to read:

SB21-SSA1-SA9,4,8 38.39 Workforce growth program. (1) A district board may obtain grants under sub. (2) for the purpose of partnering with a business, consortium of businesses, local workforce investment board established under 29 USC 2832, or economic development organization that is located or provides service in the district, in a project to help meet local needs for supporting sectors of the economy with a documented skills gap or high workforce shortage, which could include manufacturing, energy, information technology, skilled trades, and health care. A project may provide for activities that address development of individuals prior to entering the workforce and workforce training, which could include one or more of the following:

SB21-SSA1-SA9,4,9 (a) Job training scholarships based on local labor market needs.

SB21-SSA1-SA9,4,10 (b) Building or infrastructure construction.

SB21-SSA1-SA9,4,11 (c) Equipment and material purchases.

SB21-SSA1-SA9,4,12 (d) Faculty hiring.

SB21-SSA1-SA9,4,14 (e) Development in partnership with industry of curricula, based on industry standards, that lead to certificates or degrees.

SB21-SSA1-SA9,4,16 (f) Student career support services, including job placement and business recruitment.

SB21-SSA1-SA9,4,22 (2) From the appropriation under s. 20.292 (1) (aj), the board shall award grants to district boards that apply to the board to fund the costs of projects under sub. (1). The board shall consider the speed by which the activities specified in applications could meet training and employment needs and give a preference in awarding the grants to projects that seek to eliminate waiting lists for courses pertaining to jobs with high employment demand.

SB21-SSA1-SA9,11 Section 11. 238.137 of the statutes is created to read:

SB21-SSA1-SA9,4,24 238.137 Entrepreneurial assistance grants. (1) In this section:

SB21-SSA1-SA9,5,3 (a) "Institution of higher education" means an institution within the University of Wisconsin System, a technical college, or a private, nonprofit institution of higher education located in this state.

SB21-SSA1-SA9,5,6 (b) "New business" means a business organized in this state on a date not more than 60 months before the date on which the business applies for a grant under sub. (2).

SB21-SSA1-SA9,5,13 (2) The corporation may award to a new business a grant of up to $3,000 for expenses related to hiring a paid intern who will assist with research, marketing, business plan development, or other functions relating to the creation of a new business. A recipient may use the grant under this subsection only for hiring a student who is enrolled in an institution of higher education in the field of business, engineering, or information technology or in a similar field as determined by the corporation.

SB21-SSA1-SA9,5,22 (3) If the corporation awards grants under sub. (2) to 3 or more businesses to fund internships for students enrolled in a single institution of higher education, and the institution of higher education develops a program to facilitate internships funded with grants under sub. (2), the corporation may award a grant of up to $25,000 to the institution of higher education for costs associated with hiring interns under sub. (2), including faculty or staff time and curriculum development. If the corporation lacks sufficient funds to award grants to all qualified applicants, the corporation shall allocate available funds to applicants that have the greatest potential to create jobs in this state.

SB21-SSA1-SA9,5,25 (4) From the appropriations under s. 20.192 (1) (k) and (r), the corporation shall allocate at least $125,000 in each fiscal year to provide the grants under subs. (2) and (3).

SB21-SSA1-SA9,6,2 (5) The corporation shall actively pursue gifts and grants from private sources for funding grants under subs. (2) and (3).

SB21-SSA1-SA9,6,5 (6) Not later than February 1, 2019, the corporation shall submit to the legislature under s. 13.172 (2) a report evaluating the effectiveness of grants under subs. (2) and (3).".

SB21-SSA1-SA9,6,8 2. Page 94, line 5: increase the dollar amount for fiscal year 2015-16 by $200,000 and increase the dollar amount for fiscal year 2016-17 by $200,000 for the purpose for which the appropriation is made.

SB21-SSA1-SA9,6,9 3. Page 1227, line 8: after that line insert:

SB21-SSA1-SA9,6,10 " Section 3979n. 238.14 of the statutes is created to read:

SB21-SSA1-SA9,6,18 238.14 Entrepreneurial tax credit access grants. (1) The corporation shall establish and administer a program to make grants under this section. The corporation may award a grant under the program to a person who intends to use the grant to secure financing for making expenditures that would qualify for a credit under s. 71.07 (2dy) or (3g) (a) 2., 71.28 (1dy) or (3g) (a) 2., or 71.47 (1dy) or (3g) (a) 2., if the expenditures are made for a business located in this state that has fewer than 25 employees in this state or less than $5,000,000 in gross receipts for the taxable year in which the person applies for a grant under this section.

SB21-SSA1-SA9,7,3 (2) Any person who wishes to receive a grant under this section shall complete and submit an application to the corporation and enter into an agreement with the corporation to use the grant to secure financing for making expenditures described under sub. (1) and to repay any or all of the grant proceeds to the corporation if the person fails to comply with the agreement. An agreement under this subsection may provide that repayment shall be obtained through full or partial repayment of the principal amount of the grant plus interest, through receipt of a share of future profits from or an interest in a product or process, or through any other appropriate means.

SB21-SSA1-SA9,7,9 (3) (a) No person may receive a grant under this section unless the person has submitted business and financing plans to a commercial lending institution and submitted copies of the plans to the corporation. Before awarding a grant, the corporation shall verify that the lender has approved the person's plans and will underwrite a loan for expenditures described under sub. (1), contingent on the person receiving a grant under this section.

SB21-SSA1-SA9,7,13 (b) The amount of any grant awarded under this section is the amount equal to 95 percent of the tax credit that the recipient could otherwise receive for making expenditures described under sub. (1), except that the amount of the grant may not exceed an amount equal to 20 percent of the cost of the project that is being financed.

SB21-SSA1-SA9,7,16 (c) The corporation shall require, as a condition of the grant, that the recipient contribute to a project an amount that is not less than the amount the recipient receives as a grant under this section.

SB21-SSA1-SA9,7,20 (4) A person who receives a grant under this section to secure financing for making an expenditure described under sub. (1) may not claim a credit under s. 71.07 (2dy) or (3g) (a) 2., 71.28 (1dy) or (3g) (a) 2., or 71.47 (1dy) or (3g) (a) 2. for that expenditure.

SB21-SSA1-SA9,7,23 (5) (a) The corporation shall pay grants under this section from the appropriation under s. 20.192 (1) (r). The total amount that the corporation may award under this section in a fiscal year is $8,000,000.

SB21-SSA1-SA9,7,25 (b) The corporation shall establish policies and procedures to administer this section.

SB21-SSA1-SA9,8,2 (c) The corporation may not award grants under this section after January 1, 2017.

SB21-SSA1-SA9,3979o Section 3979o. 238.147 of the statutes is created to read:

SB21-SSA1-SA9,8,5 238.147 Grants to recipients of federal grants for research and innovation. (1) Definitions. In this section:

SB21-SSA1-SA9,8,8 (a) "Phase I federal grant" means a grant awarded by the federal government under Phase I of the federal Small Business Innovation Research Program or Phase I of the federal Small Business Technology Transfer Program.

SB21-SSA1-SA9,8,10 (b) "Phase I matching grant" means a grant awarded by the corporation under sub. (3).

SB21-SSA1-SA9,8,13 (c) "Phase II federal grant" means a grant awarded by the federal government under Phase II of the federal Small Business Innovation Research Program or Phase II of the federal Small Business Technology Transfer Program.

SB21-SSA1-SA9,8,15 (d) "Phase II matching grant" means a grant awarded by the corporation under sub. (4).

SB21-SSA1-SA9,8,18 (2) Grant program implementation. The corporation shall develop and implement an economic development program to award Phase I and Phase II matching grants under this section.

SB21-SSA1-SA9,8,20 (3) Phase I matching grants. (a) A Phase I federal grant recipient may apply for a Phase I matching grant on a form provided by the corporation.

SB21-SSA1-SA9,8,23 (b) Subject to par. (c) and the limitations under sub. (5), the corporation may award a Phase I matching grant to an applicant under par. (a) if the applicant meets all of the following conditions:

SB21-SSA1-SA9,9,2 1. The applicant submits to the corporation a copy of the applicant's executed Phase I federal grant agreement with the federal government or evidence satisfactory to the corporation that the applicant has received at least one payment of Phase I federal grant moneys.

SB21-SSA1-SA9,9,7 2. The applicant's business is located in this state and will not relocate outside of this state during the 3 years after it receives a Phase I matching grant. For the purposes of this subdivision, a business relocates outside of this state when the business locates more than 51 percent of its employees, its total payroll, or the activities of its headquarters, as determined by the corporation, outside of this state.

SB21-SSA1-SA9,9,11 3. The applicant submits evidence satisfactory to the corporation that the research to be conducted in connection with the Phase I federal grant will benefit the economy of this state and that at least 51 percent of that research will be conducted in this state.

SB21-SSA1-SA9,9,12 4. The applicant intends to apply for a Phase II federal grant.

SB21-SSA1-SA9,9,15 5. The applicant submitted its application under par. (a) within 180 days after the applicant first received any moneys from the federal government under the applicant's Phase I federal grant.

SB21-SSA1-SA9,9,17 6. The applicant satisfies any other requirements established by the corporation.

SB21-SSA1-SA9,9,22 (c) Before the corporation awards a Phase I matching grant, the corporation shall contract with the Phase I federal grant recipient. The corporation shall determine the contract's terms, including the amount of the Phase I matching grant, after negotiation with the Phase I federal grant recipient. The contract shall include all of the following provisions:

SB21-SSA1-SA9,9,25 1.   That, at a time determined by the corporation and specified in the contract, the Phase I federal grant recipient shall file with the corporation a report that shows the Phase I federal grant recipient's expenditures of the Phase I federal grant and the Phase I matching grant; and that, if the Phase I federal grant recipient fails to submit a report under this subdivision that is acceptable to the corporation, the corporation may order repayment of all or a portion of the Phase I matching grant.

SB21-SSA1-SA9,10,5 2.   That the Phase I federal grant recipient may assign the contract only upon the prior written consent of the corporation.

SB21-SSA1-SA9,10,8 3. That, in addition to any other purposes for which the Phase I federal grant may be expended, the Phase I matching grant may be used for patenting, market research, and marketing.

SB21-SSA1-SA9,10,10 (4) Phase II matching grants. (a) A Phase I matching grant recipient may apply for a Phase II matching grant on a form provided by the corporation.

SB21-SSA1-SA9,10,13 (b) Subject to par. (c) and the limitations under sub. (5), the corporation may award a Phase II matching grant to an applicant under par. (a) if the applicant meets all of the following conditions:

SB21-SSA1-SA9,10,17 1. The applicant submits evidence satisfactory to the corporation that the federal government approved the applicant's final report for its Phase I federal grant, the applicant has satisfied any other applicable requirements for its Phase I federal grant, and the applicant has been awarded a Phase II federal grant.

SB21-SSA1-SA9,10,19 2. The applicant submitted its application under par. (a) within 90 days after the applicant completed its research under the applicant's Phase I federal grant.

SB21-SSA1-SA9,10,21 3. The applicant satisfies any other requirements established by the corporation.

SB21-SSA1-SA9,11,2 (c) Before the corporation awards a Phase II matching grant, the corporation shall contract with the Phase II federal grant recipient. The corporation shall determine the contract's terms, including the amount of the Phase II matching grant, after negotiation with the Phase II federal grant recipient. The contract shall include all of the following provisions:

SB21-SSA1-SA9,11,8 1.   That, at a time determined by the corporation and specified in the contract, the Phase II federal grant recipient shall file with the corporation a report that shows the Phase II federal grant recipient's expenditures of the Phase II federal grant and the Phase II matching grant; and that, if the Phase II federal grant recipient fails to submit a report under this subdivision that is acceptable to the corporation, the corporation may order repayment of all or a portion of the Phase II matching grant.

SB21-SSA1-SA9,11,10 2.   That the Phase II federal grant recipient may assign the contract only upon the prior written consent of the corporation.

SB21-SSA1-SA9,11,13 3. That, in addition to any other purposes for which the Phase II federal grant may be expended, the Phase II matching grant may be expended for patenting, market research, and marketing.

SB21-SSA1-SA9,11,16 (5) Limitations. (a) The corporation may not award a Phase I or Phase II matching grant that exceeds $50,000 or the amount of the Phase I or Phase II federal grant, whichever is less.