SB148: Bill Text

SB148,497 Section 497. 238.03 (title) of the statutes is renumbered 235.03 (title) and amended to read:

SB148,167,25 235.03 (title) Duties of board the authority concerning economic development.

SB148,498 Section 498. 238.03 (1) of the statutes is repealed.

SB148,499 Section 499. 238.03 (2) of the statutes is renumbered 235.03 (2), and 235.03 (2) (intro.) and (c), as renumbered, are amended to read:

SB148,168,5 235.03 (2) (intro.) For each program developed and implemented by the board authority under this subchapter, the board authority shall do all of the following:

SB148,168,10 (c) Require that each recipient of a grant or loan under the program submit a report to the corporation authority. Each contract with a recipient of a grant or loan under the program must specify the frequency and format of the report to be submitted to the corporation authority and the performance measures to be included in the report.

SB148,500 Section 500. 238.03 (3) of the statutes is renumbered 235.03 (3), and 235.03 (3) (intro.), (a) and (b) (intro.), as renumbered, are amended to read:

SB148,168,15 235.03 (3) (intro.) The board authority shall require for each economic development program developed and implemented by the board authority all of the following:

SB148,169,7 (a) That each recipient of a grant or loan under the program of at least $100,000 submit to the corporation authority, within 120 days after the end of the recipient's fiscal year in which any grant or loan funds were expended, a schedule of expenditures of the grant or loan funds, including expenditures of any matching cash or in-kind match or at a different time as provided in policies and procedures approved by the board an attestation, signed by the director or principal officer of the recipient to attest to the accuracy of the schedule of expenditures. The recipient shall engage an independent certified public accountant to perform procedures, approved by the corporation and consistent with applicable professional standards of the American Institute of Certified Public Accountants, to determine whether the grant or loan funds and any matching cash or in-kind match were expended in accordance with the grant or loan contract. The board shall also require the recipient of such a grant or loan to make available for inspection the documents supporting the schedule of expenditures. The board shall include the requirements under this paragraph in the contract with grant or loan recipients. The attestation shall verify that the grant or loan funds and any matching cash or in-kind match were expended in accordance with the grant or loan contract.

SB148,169,12 (b) (intro.) That the board authority, if a recipient of a grant or loan under the program submits false or misleading information to the corporation authority or fails to comply with the terms of a contract entered into with the corporation authority, without providing satisfactory explanation for the noncompliance, do all of the following:

SB148,501 Section 501. 238.04 of the statutes is repealed.

SB148,502 Section 502. 238.045 of the statutes is repealed.

SB148,503 Section 503. 238.046 of the statutes is renumbered 235.014, and 235.014 (1) and (2), as renumbered, are amended to read:

SB148,170,6 235.014 (1) A member of the board or an employee of the corporation authority to whom the board delegates its authority to contract shall notify the corporation's authority's legal counsel or, if the corporation's legal counsel is unavailable, the chief executive officer of the corporation authority if the member or employee has a direct or indirect, private, pecuniary interest in a contract that is being negotiated, bid for, or entered into with the corporation authority. If the corporation's authority's legal counsel or chief executive officer is notified under this section, he or she shall report the name of the individual from whom he or she received the notification and the contract in which the individual has a private, pecuniary interest to the board. A member or employee who notifies the corporation's authority's legal counsel or chief executive officer under this section is not authorized to participate in the member's or employee's capacity as a member of the board or an employee of the corporation authority in the making of the contract or to perform in regard to the contract some official function requiring the exercise of discretion on the member's or employee's part.

SB148,170,16 (2) An employee of the corporation authority shall notify the corporation's authority's legal counsel or, if the corporation's legal counsel is unavailable, the chief executive officer of the corporation authority if the employee has a controlling interest in an entity that is negotiating, bidding for, or entering into a contract with the corporation authority. If the corporation's authority's legal counsel or chief executive officer is notified under this section, he or she shall report the name of the individual from whom he or she received the notification and the contract at issue to the board. The board shall prohibit the corporation authority from entering into any contract with an entity in which an employee of the corporation authority has a controlling interest.

SB148,504 Section 504. 238.05 of the statutes is repealed.

SB148,505 Section 505. 238.06 of the statutes is renumbered 235.015 and amended to read:

SB148,170,23 235.015 Liability limited. Neither the state nor any political subdivision of the state, nor any officer, employee, or agent of the state or a political subdivision of the state who is acting within the scope of employment or agency, is liable for any debt, obligation, act, or omission of the corporation authority.

SB148,506 Section 506. 238.07 of the statutes is renumbered 235.016, and 235.016 (1), (2) (intro.), (3) and (4), as renumbered, are amended to read:

SB148,171,5 235.016 (1) Annually, by January October 1, the board authority shall submit to the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2), a report identifying the economic development and housing programs and projects that the board authority intends to develop and implement during the current calendar fiscal year.

SB148,171,10 (2) (intro.) Annually, no later than October l, the board authority shall submit to the joint legislative audit committee and the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2), a report for the previous fiscal year on each of the economic development programs of the corporation authority that contains all of the following:

SB148,171,12 (3) The board authority shall make readily accessible to the public on an Internet-based system the information required under sub. (2).

SB148,171,17 (4) Annually, beginning in 2014, the board shall have an independent audit conducted of the corporation's authority's financial statements for the previous fiscal year and submit the audit report to the joint legislative audit committee and the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2).

SB148,507 Section 507. 238.08 of the statutes is repealed.

SB148,508 Section 508. 238.09 of the statutes is renumbered 235.017, and 235.017 (1), (2) and (3), as renumbered, are amended to read:

SB148,171,22 235.017 (1) When the corporation authority is required to publicly solicit proposals from multiple vendors of goods or services.

SB148,171,24 (2) How the corporation authority is to evaluate proposals from multiple vendors.

SB148,172,2 (3) How the corporation authority is to assess any conflict of interest a vendor may have if the vendor sells goods or services to the corporation authority.

SB148,509 Section 509. 238.10 of the statutes is renumbered 235.018, and 235.018 (1) to (4), as renumbered, are amended to read:

SB148,172,11 235.018 (1) Allocation. The corporation authority shall establish under 26 USC 146 and administer a system for the allocation of the volume cap on the issuance of private activity bonds, as defined under 26 USC 141 (a), among all municipalities, as defined in s. 67.01 (5), and any corporation formed on behalf of those municipalities, and among this state, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Aerospace Authority, and the Wisconsin Housing and Economic Development Authority authority.

SB148,172,17 (2) Amendment to allocation. At any time prior to December 31 in any year, the corporation authority may adopt rules policies and procedures to revise the allocation system established for that year under sub. (1), except that any revision under this subsection does not apply to any allocation under which the recipient of that allocation has adopted a resolution authorizing the issuance of a private activity bond, as defined in 26 USC 141 (a).

SB148,172,22 (3) Conditions. The corporation authority may establish any procedure for, and place any condition upon, the granting of an allocation under this section which the corporation authority deems to be in the best interest of the state including a requirement that a cash deposit, at a rate established by the corporation authority, be a condition for an allocation.

SB148,172,25 (4) Certification. If the corporation authority receives notice of the issuance of a bond under an allocation under subs. (1) to (3), the corporation authority shall certify that that bond meets the requirements of 26 USC 146.

SB148,510 Section 510. 238.11 of the statutes is renumbered 235.11, and 235.11 (1), (2) and (5), as renumbered, are amended to read:

SB148,173,8 235.11 (1) The corporation authority shall prescribe the notice forms to be used under s. 66.1103 (4m) (a) 1. The corporation authority shall include on the forms a requirement for information on the number of jobs the person submitting the notice expects to be eliminated, created, or maintained on the project site and elsewhere in this state by the project which is the subject of the notice. The corporation authority shall prescribe the forms to be used under s. 66.1103 (4m) (b).

SB148,173,13 (2) If the corporation authority receives a notice under s. 66.1103 (4m) (a), the corporation authority shall estimate, no later than 20 days after receipt of the notice, whether the project that is the subject of the notice is expected to eliminate, create, or maintain jobs on the project site and elsewhere in this state and the net number of jobs expected to be eliminated, created, or maintained as a result of the project.

SB148,173,16 (5) The corporation authority shall issue an estimate made under sub. (2) to the city, village, town, or county which will issue the bonds to finance the project which is the subject of the estimate.

SB148,511 Section 511. 238.12 of the statutes is renumbered 235.12, and 235.12 (2), as renumbered, is amended to read:

SB148,174,2 235.12 (2) The corporation authority may not award a grant or loan under this chapter to a person or certify a person to receive tax benefits under this subchapter or subch. III unless the corporation authority enters into an agreement with the person that requires the person to repay the grant, loan, or tax benefits if, within 5 years after receiving the grant or loan or being certified to receive tax benefits, the person ceases to conduct in this state the economic activity for which the person received the grant or loan or for which the person was certified to receive tax benefits and commences substantially the same economic activity outside this state.

SB148,512 Section 512. 238.125 of the statutes is repealed.

SB148,513 Section 513. 238.127 of the statutes is renumbered 235.127, and 235.127 (2) (intro.), (c) (intro.), (e), (h) and (j), as renumbered, are amended to read:

SB148,174,11 235.127 (2) (intro.) The corporation authority shall establish and administer a state main street program to coordinate state and local participation in programs offered by the national main street center, created by the national trust for historic preservation, to assist municipalities in planning, managing and implementing programs for the revitalization of business areas. The corporation authority shall do all of the following:

SB148,174,14 (c) (intro.) With help from interested individuals and organizations, develop a plan describing the objectives of the state main street program and the methods by which the corporation authority shall:

SB148,174,23 (e) Annually select, upon application, up to 5 municipalities to participate in the state main street program. The program for each municipality shall conclude after 3 years, except that the program for each municipality selected after July 29, 1995, shall conclude after 5 years. The corporation authority shall select program participants representing various geographical regions and populations. A municipality may apply to participate, and the corporation authority may select a municipality for participation, more than one time. In selecting a municipality, however, the corporation authority may give priority to those municipalities that have not previously participated.

SB148,175,2 (h) Provide training, technical assistance and information on the revitalization of business areas to municipalities which do not participate in the state main street program. The corporation authority may charge reasonable fees for the services and information provided under this paragraph.

SB148,175,4 (j) The corporation authority shall expend at least $250,000 annually on the state main street program.

SB148,514 Section 514. 238.13 of the statutes is renumbered 235.13, and 235.13 (2) (a) (intro.), (3) (intro.) and (f) and (5), as renumbered, are amended to read:

SB148,175,8 235.13 (2) (a) (intro.) The corporation authority may make a grant to a person if all of the following apply:

SB148,175,10 (3) (intro.) The corporation authority may consider the following criteria in making awards under this section:

SB148,175,12 (f) Any other factors considered by the corporation to be authority considers relevant to assessing the viability and feasibility of the project.

SB148,175,15 (5) Before the corporation authority awards a grant under this section, the corporation authority shall consider the recommendations of the department of administration and the department of natural resources.

SB148,515 Section 515. 238.133 of the statutes is renumbered 235.133, and 235.133 (2) (title), (a), (b), (c) and (d), (3) (intro.), (4), (5) (intro.) and (c), (6) and (7), as renumbered, are amended to read:

SB148,175,19 235.133 (2) (title) Duties of the corporation authority.

SB148,175,23 (a) The corporation authority shall administer a program to award brownfield site assessment grants from the appropriation under s. 20.192 (1) (s) 20.885 (3) (u) to local governmental units for the purposes of conducting any of the eligible activities under sub. (3).

SB148,176,3 (b) The corporation authority may not award a grant to a local governmental unit under this section if that local governmental unit caused the environmental contamination that is the basis for the grant request.

SB148,176,7 (c) The corporation authority may only award grants under this section if the person that caused the environmental contamination that is the basis for the grant request is unknown, cannot be located or is financially unable to pay the cost of the eligible activities.

SB148,176,11 (d) The corporation authority shall establish criteria as necessary to administer the program. The corporation authority may limit the total amount of funds that may be used to cover the costs of each category of eligible activity described in sub. (3).

SB148,176,13 (3) Eligible activities. (intro.) The corporation authority may award grants to local governmental units to cover the costs of the following activities:

SB148,176,16 (4) Application for grant. The applicant shall submit an application on a form prescribed by the corporation authority and shall include any information that the corporation authority finds necessary to calculate the amount of a grant.

SB148,176,18 (5) Grant criteria. (intro.) The corporation authority shall consider the following criteria when determining whether to award a grant:

SB148,176,20 (c) Other criteria that the corporation authority finds necessary to calculate the amount of a grant.

SB148,176,24 (6) Limitation of grant. The total amount of all grants awarded to a local governmental unit in a fiscal year under this section shall be limited to an amount equal to 15% of the available funds appropriated under s. 20.192 (1) (s) 20.885 (3) (u) for the fiscal year.

SB148,177,3 (7) Matching funds. The corporation authority may not distribute a grant unless the applicant contributes matching funds equal to 20% of the grant. Matching funds may be in the form of cash or in-kind contribution or both.

SB148,516 Section 516. 238.135 of the statutes is renumbered 235.135 and amended to read:

SB148,177,10 235.135 Grants to regional economic development organizations. The corporation authority shall award annual grants to regional economic development organizations to fund marketing activities. The amount of each grant may not exceed $100,000 or the amount of matching funds the organization obtains from sources other than the corporation authority or the state, whichever is less.

SB148,517 Section 517. 238.15 of the statutes is renumbered 235.15, and 235.15 (1) (intro.) and (m) 1. (intro.) and c., (2) and (3) (a), (b), (d) (intro.), 1. and 2. a. and b. and (e), as renumbered, are amended to read:

SB148,177,22 235.15 (1) Angel investment tax credits. (intro.) The corporation authority 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 authority 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 authority may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). The corporation authority may certify or recertify a business for purposes of s. 71.07 (5d) only if the business satisfies all of the following conditions:

SB148,178,4 (m) 1. (intro.) 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 authority 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:

SB148,178,6 c. The activities of the business's headquarters, as determined by the corporation authority.

SB148,178,20 (2) Early stage seed investment tax credits. The corporation authority shall implement a program to certify investment fund managers for purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. An investment fund manager desiring certification shall submit an application to the corporation authority. The investment fund manager shall specify in the application the investment amount that the manager wishes to raise and the corporation authority may certify the manager and determine the amount that qualifies for purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. In determining whether to certify an investment fund manager, the corporation authority shall consider the investment fund manager's experience in managing venture capital funds, the past performance of investment funds managed by the applicant, the expected level of investment in the investment fund to be managed by the applicant, and any other relevant factors. The corporation authority may certify only investment fund managers that commit to consider placing investments in businesses certified under sub. (1).

SB148,178,24 (3) (a) List of certified businesses and investment fund managers. The corporation authority shall maintain a list of businesses certified under sub. (1) and investment fund managers certified under sub. (2) and shall permit public access to the lists through the corporation's authority's Internet Web site.

SB148,179,3 (b) Notification of department of revenue. The corporation authority shall notify the department of revenue of every certification issued under subs. (1) and (2) and the date on which any such certification is revoked or expires.

SB148,180,10 (d) Rules Administration. (intro.) The corporation authority, in consultation with the department of revenue, shall adopt rules establish policies and procedures to administer this section. The rules and shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) at $3,000,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $5,500,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2010, $6,500,000 for calendar year 2010, and is $20,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 that may be claimed for investments paid to fund managers certified under sub. (2) at $3,500,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2010, $8,000,000 for calendar year 2010, and is $20,500,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules policies and procedures shall also provide that, for calendar years beginning after December 31, 2007, a person who receives a credit under ss. s. 71.07 (5b) and or (5d), 71.28 (5b), 71.47 (5b), or 76.638 must keep the investment in a certified business, or with a certified fund manager, for no less than 3 years, unless the person's investment becomes worthless, as determined by the corporation authority, during the 3-year period or the person has kept the investment for no less than 12 months and a bona fide liquidity event, as determined by the corporation authority, occurs during the 3-year period. The rules policies and procedures shall permit the corporation authority to reallocate credits under this section that are unused in any calendar year to a person eligible for tax benefits, as defined under s. 238.16 235.16 (1) (d), if all of the following apply:

SB148,180,12 1. The corporation authority notifies the joint committee on finance in writing of its proposed reallocation.

SB148,180,16 2. a. The cochairpersons of the joint committee on finance fail to notify the corporation authority, within 14 working days after the date of the corporation's authority's notification under subd. 1., that the committee has scheduled a meeting for the purpose of reviewing the proposed reallocation.

SB148,180,18 b. The cochairpersons of the joint committee on finance notify the corporation authority that the committee has approved the proposed reallocation.

SB148,181,3 (e) Transfer. A person who is eligible to claim a credit under s. 71.07 (5b), 71.28 (5b), 71.47 (5b), or 76.638 may sell or otherwise transfer the credit to another person who is subject to the taxes or fees imposed under s. 71.02, 71.23, 71.47, or subch. III of ch. 76, if the person receives prior authorization from the investment fund manager and the manager then notifies the corporation authority and the department of revenue of the transfer and submits with the notification a copy of the transfer documents. No person may sell or otherwise transfer a credit as provided in this paragraph more than once in a 12-month period. The corporation authority may charge any person selling or otherwise transferring a credit under this paragraph a fee equal to 1 percent of the credit amount sold or transferred.

SB148,518 Section 518. 238.16 of the statutes is renumbered 235.16, and 235.16 (1) (c) 2. (intro.), (2) (intro.) and (b), (3) (intro.), (4) (b) 1. (intro.) and 2. and (c) and (5) (title), (a), (b), (c), (d), (e) and (f) (intro.) and 1. (intro.), as renumbered, are amended to read:

SB148,181,10 235.16 (1) (c) 2. (intro.) The corporation authority may grant exceptions to the requirement under subd. 1. that a full-time job means a position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year if all of the following apply:

SB148,181,12 (2) (intro.) The corporation authority may certify a person to receive tax benefits under this section if all of the following apply:

SB148,181,14 (b) The person applies under this section and enters into a contract with the corporation authority.

SB148,181,21 (3) Eligibility for tax benefits. (intro.) A person certified under sub. (2) may receive tax benefits under this section if, in each year for which the person claims tax benefits under this section, the person increases net employment in this state in the person's business above the net employment in this state in the person's business during the year before the person was certified under sub. (2), as determined by the corporation authority under its policies and procedures, and one of the following applies:

SB148,182,2 (4) (b) 1. (intro.) The corporation authority may award to a person certified under sub. (2) tax benefits for each eligible employee in an amount equal to up to 10 percent of the wages paid by the person to that employee or $10,000, whichever is less, if that employee earned wages in the year for which the tax benefit is claimed equal to one of the following:

SB148,182,5 2. The corporation authority may award to a person certified under sub. (2) tax benefits in an amount to be determined by the corporation authority for costs incurred by the person to undertake the training activities described in sub. (3) (c).

SB148,182,10 (c) Subject to a reallocation by the corporation authority pursuant to rules policies and procedures adopted under s. 238.15 235.15 (3) (d), the corporation authority may allocate up to $5,000,000 in tax benefits under this section in any calendar year, except that beginning on July 1, 2011, the corporation may allocate up to $10,000,000 in tax benefits under this section in any calendar year.

SB148,182,11 (5) (title) Duties of the corporation authority.

SB148,182,13 (a) The corporation authority shall notify the department of revenue when the corporation authority certifies a person to receive tax benefits.

SB148,182,15 (b) The corporation authority shall notify the department of revenue within 30 days of revoking a certification made under sub. (2).

SB148,182,18 (c) The corporation authority may require a person to repay any tax benefits the person claims for a year in which the person failed to maintain employment required by an agreement under sub. (2) (b).