LRB-3225/2
MPG&AJM:amn
2015 - 2016 LEGISLATURE
December 18, 2015 - Introduced by Senators Lassa,
Carpenter, C. Larson,
Vinehout, L. Taylor and Shilling, cosponsored by Representatives Barca,
Shankland, Milroy, Sargent, Goyke, Spreitzer, Berceau, Brostoff, C.
Taylor, Ohnstad, Jorgensen, Considine, Subeck, Wachs, Kolste, Hebl,
Zamarripa, Pope, Sinicki and Johnson. Referred to Committee on Economic
Development and Commerce.
SB468,5,2
1An Act to repeal 13.48 (10) (b) 6., 13.48 (12) (b) 5., 15.107 (20), 16.35, 19.42 (10)
2(sm), 19.42 (13) (om), 20.192 (intro.), 20.192 (1) (k), 40.02 (54) (m), 70.11 (38r),
3chapter 238 (title), 238.01 (1), 238.01 (2), 238.02, 238.03 (4), 238.04, 238.045,
4238.046, 238.05, 238.06, 238.07 (4), 238.08, 238.09 and 238.123;
to renumber
516.295, 16.309, 20.192 (1) (title), subchapter I (title) of chapter 238 [precedes
6238.01], 238.01 (intro.), 238.01 (3) and subchapter II (title) of chapter 238
7[precedes 238.30];
to renumber and amend 20.192 (1) (a), 20.192 (1) (m),
820.192 (1) (r), 20.192 (1) (s), 20.505 (1) (fm), 238.03 (title) and (1) to (3), 238.07
9(1), 238.07 (2), 238.07 (3), 238.10, 238.11, 238.115, 238.12, 238.125, 238.127,
10238.13, 238.133, 238.135, 238.14, 238.145, 238.15, 238.16, 238.17, 238.23,
11238.25, 238.26, 238.30, 238.301, 238.302, 238.303, 238.304, 238.3045, 238.305,
12238.306, 238.308, 238.31, 238.315, 238.32, 238.325, 238.335, 238.34, 238.345,
13238.35, 238.363, 238.365, 238.368, 238.37, 238.38, 238.385, 238.395, 238.397,
14238.398, 238.399 and 238.3995;
to amend 1.12 (1) (b), 13.172 (1), 13.48 (13) (a),
113.62 (2), 13.625 (9), 13.94 (1) (dr), 13.94 (1) (ms), 13.94 (1s) (c) 5., 13.94 (4) (a)
21., 13.95 (intro.), 16.002 (2), 16.004 (4), 16.004 (5), 16.045 (1) (a), 16.41 (4),
316.417 (1) (b), 16.52 (7), 16.528 (1) (a), 16.53 (2), 16.54 (9) (a) 1., 16.85 (2), 16.865
4(8), 19.56 (2) (b) 6., 19.56 (3) (e) (intro.), 19.56 (3) (e) 1., 19.56 (3) (f), 19.57, 20.370
5(2) (mr), 23.167 (2) (intro.), 23.169 (1), 23.169 (2), 25.17 (70) (d), 25.17 (72), 26.37
6(1) (b), 26.37 (2), 30.121 (3w) (b), 36.09 (1) (am) (intro.), 36.11 (29r) (b) 1., 36.11
7(29r) (b) 2., 36.25 (24), 38.04 (1m) (b) (intro.), 38.04 (10m) (a), 38.04 (10m) (b),
840.05 (4) (b), 40.05 (4) (bm), 40.05 (5) (b) 4., 40.62 (2), 40.95 (1) (a) 1., 41.11 (1g)
9(b) (intro.), 41.11 (1r) (a), 41.11 (1r) (b), 59.57 (1) (a), 60.23 (4) (c), 66.1103 (4m)
10(a) 1., 66.1103 (4m) (a) 2., 66.1103 (4m) (b), 66.1103 (4s) (a) 1., 66.1103 (4s) (b)
113., 66.1103 (4s) (b) 4., 66.1103 (4s) (d), 66.1103 (10) (c), 66.1103 (10) (g), 71.07
12(2dm) (a) 1., 71.07 (2dm) (a) 3., 71.07 (2dm) (a) 4., 71.07 (2dm) (f) 1., 71.07 (2dm)
13(f) 2., 71.07 (2dm) (i), 71.07 (2dm) (j), 71.07 (2dm) (k), 71.07 (2dx) (a) 2., 71.07
14(2dx) (a) 4., 71.07 (2dx) (b) (intro.), 2. and 3., 71.07 (2dx) (b) 4. and 5., 71.07 (2dx)
15(be), 71.07 (2dx) (bg), 71.07 (2dx) (c), 71.07 (2dx) (d), 71.07 (2dy) (a), 71.07 (2dy)
16(b), 71.07 (2dy) (c) 1., 71.07 (2dy) (c) 2., 71.07 (2dy) (d) 2., 71.07 (3g) (a) (intro.),
1771.07 (3g) (b), 71.07 (3g) (e) 2., 71.07 (3g) (f) 1., 71.07 (3g) (f) 2., 71.07 (3q) (a) 1.,
1871.07 (3q) (a) 2., 71.07 (3q) (b) (intro.), 71.07 (3q) (b) 1., 71.07 (3q) (b) 2., 71.07
19(3q) (c) 2., 71.07 (3q) (c) 3., 71.07 (3w) (a) 2., 71.07 (3w) (a) 3., 71.07 (3w) (a) 4.,
2071.07 (3w) (a) 5d., 71.07 (3w) (a) 5e., 71.07 (3w) (b) (intro.), 71.07 (3w) (b) 5.,
2171.07 (3w) (bm) 1., 71.07 (3w) (bm) 2., 71.07 (3w) (bm) 3., 71.07 (3w) (bm) 4.,
2271.07 (3w) (c) 3., 71.07 (3w) (d), 71.07 (3y) (a) 1., 71.07 (3y) (a) 2., 71.07 (3y) (b)
23(intro.), 71.07 (3y) (b) 1., 71.07 (3y) (b) 2., 71.07 (3y) (b) 3., 71.07 (3y) (b) 4., 71.07
24(3y) (b) 5., 71.07 (3y) (c) 2., 71.07 (5b) (a) 2., 71.07 (5b) (b) 1., 71.07 (5b) (b) 2.,
2571.07 (5b) (d) 3., 71.07 (5d) (a) 1. (intro.), 71.07 (5d) (a) 2m., 71.07 (5d) (a) 3.,
171.07 (5d) (b) (intro.), 71.07 (5d) (b) 1., 71.07 (5d) (b) 2., 71.07 (5d) (c) 2., 71.07
2(5d) (d) 1., 71.07 (9m) (c) (intro.), 71.26 (1) (be), 71.28 (1dm) (a) 1., 71.28 (1dm)
3(a) 3., 71.28 (1dm) (a) 4., 71.28 (1dm) (f) 1., 71.28 (1dm) (f) 2., 71.28 (1dm) (i),
471.28 (1dm) (j), 71.28 (1dm) (k), 71.28 (1dx) (a) 2., 71.28 (1dx) (a) 4., 71.28 (1dx)
5(b) (intro.), 71.28 (1dx) (b) 2., 71.28 (1dx) (b) 3., 71.28 (1dx) (b) 4., 71.28 (1dx) (b)
65., 71.28 (1dx) (be), 71.28 (1dx) (bg), 71.28 (1dx) (c), 71.28 (1dx) (d), 71.28 (1dy)
7(a), 71.28 (1dy) (b), 71.28 (1dy) (c) 1., 71.28 (1dy) (c) 2., 71.28 (1dy) (d) 2., 71.28
8(3g) (a) (intro.), 71.28 (3g) (b), 71.28 (3g) (e) 2., 71.28 (3g) (f) 1., 71.28 (3g) (f) 2.,
971.28 (3q) (a) 1., 71.28 (3q) (a) 2., 71.28 (3q) (b), 71.28 (3q) (c) 2., 71.28 (3q) (c)
103., 71.28 (3w) (a) 2., 71.28 (3w) (a) 3., 71.28 (3w) (a) 4., 71.28 (3w) (a) 5d., 71.28
11(3w) (a) 5e., 71.28 (3w) (b) (intro.), 71.28 (3w) (b) 5., 71.28 (3w) (bm) 1., 71.28
12(3w) (bm) 2., 71.28 (3w) (bm) 3., 71.28 (3w) (bm) 4., 71.28 (3w) (c) 3., 71.28 (3w)
13(d), 71.28 (3y) (a) 1., 71.28 (3y) (a) 2., 71.28 (3y) (b) (intro.), 71.28 (3y) (b) 1., 71.28
14(3y) (b) 2., 71.28 (3y) (b) 3., 71.28 (3y) (b) 4., 71.28 (3y) (b) 5., 71.28 (3y) (c) 2.,
1571.28 (4) (am) 1., 71.28 (4) (am) 2., 71.28 (5b) (a) 2., 71.28 (5b) (b) 1., 71.28 (5b)
16(b) 2., 71.28 (5b) (d) 3., 71.28 (6) (c) (intro.), 71.47 (1dm) (a) 1., 71.47 (1dm) (a)
173., 71.47 (1dm) (a) 4., 71.47 (1dm) (f) 1., 71.47 (1dm) (f) 2., 71.47 (1dm) (i), 71.47
18(1dm) (j), 71.47 (1dm) (k), 71.47 (1dx) (a) 2., 71.47 (1dx) (a) 4., 71.47 (1dx) (b)
19(intro.), 71.47 (1dx) (b) 2., 71.47 (1dx) (b) 3., 71.47 (1dx) (b) 4., 71.47 (1dx) (b) 5.,
2071.47 (1dx) (be), 71.47 (1dx) (bg), 71.47 (1dx) (c), 71.47 (1dx) (d), 71.47 (1dy) (a),
2171.47 (1dy) (b), 71.47 (1dy) (c) 1., 71.47 (1dy) (c) 2., 71.47 (1dy) (d) 2., 71.47 (3g)
22(a) (intro.), 71.47 (3g) (b), 71.47 (3g) (e) 2., 71.47 (3g) (f) 1., 71.47 (3g) (f) 2., 71.47
23(3q) (a) 1., 71.47 (3q) (a) 2., 71.47 (3q) (b) (intro.), 71.47 (3q) (b) 1., 71.47 (3q) (b)
242., 71.47 (3q) (c) 2., 71.47 (3q) (c) 3., 71.47 (3w) (a) 2., 71.47 (3w) (a) 3., 71.47 (3w)
25(a) 4., 71.47 (3w) (a) 5d., 71.47 (3w) (a) 5e., 71.47 (3w) (b) (intro.), 71.47 (3w) (b)
15., 71.47 (3w) (bm) 1., 71.47 (3w) (bm) 2., 71.47 (3w) (bm) 3., 71.47 (3w) (bm) 4.,
271.47 (3w) (c) 3., 71.47 (3w) (d), 71.47 (3y) (a) 1., 71.47 (3y) (a) 2., 71.47 (3y) (b)
3(intro.), 71.47 (3y) (b) 1., 71.47 (3y) (b) 2., 71.47 (3y) (b) 3., 71.47 (3y) (b) 4., 71.47
4(3y) (b) 5., 71.47 (3y) (c) 2., 71.47 (4) (am), 71.47 (5b) (a) 2., 71.47 (5b) (b) 1., 71.47
5(5b) (b) 2., 71.47 (5b) (d) 3., 71.47 (6) (c) (intro.), 71.78 (4) (m), 73.03 (35), 73.03
6(35m), 75.106 (1) (a), 76.636 (1) (b) 1., 76.636 (1) (b) 2., 76.636 (1) (b) 3., 76.636
7(1) (b) 4., 76.636 (1) (d), 76.636 (2) (intro.), 76.636 (2) (b), 76.636 (2) (c), 76.636
8(2) (d), 76.636 (2) (e), 76.636 (4) (intro.), 76.636 (5), 76.636 (6), 76.637 (1), 76.637
9(2), 76.637 (3), 76.637 (4), 76.638 (1), 76.638 (2), 77.54 (9a) (a), 79.04 (7) (a),
1084.01 (6m) (b) (intro.), 84.01 (11m) (a), 84.01 (11m) (b), 93.07 (3), 93.07 (18) (b)
11(intro.), 93.07 (20) (a), 93.07 (20) (b), 93.33 (5) (intro.), 93.42 (5), 100.45 (1) (dm),
12106.16 (3), 106.27 (2m), 114.31 (6), 196.49 (4), 196.491 (3) (a) 2m. b., 196.491 (3)
13(d) 8., 230.03 (3), 230.81 (2), 234.02 (1), 234.032 (2) (intro.), 234.08 (5), 234.08
14(6), 234.255 (1), 234.255 (2), 234.84 (1), 234.84 (3) (c), 234.84 (4) (a), 234.84 (5)
15(a), 234.84 (5) (b), 234.932 (3) (c), 281.60 (6), 281.75 (4) (b) 3., 285.59 (1) (b),
16292.11 (7) (d) 1m. b., 292.255 and 292.63 (4) (cc) 2. b.; and
to create 13.94 (1)
17(ds), 13.94 (1s) (c) 5m., 15.107 (20), 15.15, 15.155, 16.35, 20.143 (intro.), 20.143
18(1) (g), 20.143 (1) (gm), 20.505 (1) (zr), 230.81 (4), chapter 555 (title), 555.01 (1),
19555.01 (3), 555.07 (2) (i), 555.095, 555.12 (1) (a), 555.12 (2) (b), 555.12 (2) (c),
20555.121, 555.122 and subchapter III of chapter 555 [precedes 555.40] of the
21statutes;
relating to: creating the Department of Economic Opportunity and
22the Economic Development Policy Board, requiring the creation of a nonstock,
23nonprofit corporation to be known as the Badger Innovation Corporation,
24providing for the elimination of the Wisconsin Economic Development
25Corporation and the transfer its functions to the Department of Economic
1Opportunity and the Badger Innovation Corporation, granting rule-making
2authority, and making appropriations.
Analysis by the Legislative Reference Bureau
This bill provides for the elimination of the Wisconsin Economic Development
Corporation (WEDC) and the transfer of its functions to a new Department of
Economic Opportunity (DEO) and a nonstock, nonprofit corporation to be known as
the "Badger Innovation Corporation." The bill's provisions become effective only if
a transition plan is enacted as a part of the 2017-19 biennial budget act.
Transition
The bill creates an Economic Development Transition Council (transition
council) to effect the transition of WEDC's functions to DEO and the Badger
Innovation Corporation. The transition council consists of the following members:
1. Five members appointed by the governor.
2. One representative to the assembly appointed by the speaker of the
assembly.
3. One representative to the assembly appointed by the minority leader of the
assembly.
4. One senator appointed by the majority leader of the senate.
5. One senator appointed by the minority leader of the senate.
6. The chief executive officer, chief operating officer, and chief financial officer
of WEDC.
7. The secretary of administration.
8. The secretary of revenue.
The members appointed by the governor must include representatives of local
and regional economic development agencies.
The bill requires the transition council to develop a detailed plan for the
transfer of WEDC's duties, powers, and functions to DEO and the Badger Innovation
Corporation. The transition council is required to submit the transition plan to the
governor within 12 months after the bill is enacted, except that the Joint Committee
on Finance may approve an extension of that deadline.
The bill requires the governor to include the transition plan as a part of the
executive budget for the 2017-19 fiscal biennium, unless the transition plan is not
ready at that time, in which case the governor must include the transition plan as
a part of the executive budget for the 2019-21 fiscal biennium. If the transition plan
or a version of it is enacted as a part of the 2017-19 or 2019-21 biennial budget act,
the transition plan takes effect approximately six months after enactment of the
biennial budget act, unless the legislature specifies a different effective date.
The transition council is required to send a notice to the Legislative Reference
Bureau for publication in the Wisconsin Administrative Register that confirms
enactment of the transition plan and states the effective date of the transition plan
as enacted. If that notice is not provided before July 1, 2020, the transition plan does
not take effect.
Department of Economic Opportunity
Under the bill, DEO assumes most of WEDC's functions related to economic
development, including reporting requirements. The bill also includes new
responsibilities for DEO, including the following:
1. DEO emphasizes economic development programs that encourage
entrepreneurship, new business start-ups, and woman-owned, disabled-veteran
owned, and minority businesses.
2. DEO must post on its Internet site DEO's job creation and retention goals;
all amendments to contracts executed under an economic development program of
DEO; and all agendas, meeting minutes, and materials discussed for meetings of the
Economic Development Policy Board, described below, and the board of directors of
the Badger Innovation Corporation.
3. DEO's contract with a grant or loan recipient, or with a person DEO certifies
to claim tax credits, must include a provision requiring the recipient to repay all or
a portion of the grant, loan, or tax credits if, within five years after receiving the grant
or loan or being certified to receive tax credits, the total number of employees the
recipient employs in full-time jobs in Wisconsin falls below the average number of
employees the recipient employed in full-time jobs in Wisconsin during the previous
two years. DEO is required to refer any claim for damages with respect to that
contract requirement to the Department of Justice for collection.
4. DEO's contract with a grant or loan recipient, or with a person DEO certifies
to claim tax credits, must include a provision requiring the recipient to repay all or
a portion of the grant, loan, or tax credits if, within five years after the contract terms
have been completed, the person eliminates any full-time job in this state that was
created as a result of the grant, loan, or tax credits. DEO is also required to refer any
claim for damages with respect to that contract requirement to the Department of
Justice for collection.
5. In its annual report to the legislature, DEO must include the number of
businesses or other persons against whom DEO, or WEDC under previous law, has
initiated an action because the business or other person was not in compliance with
contract requirements under an economic development program administered by
DEO, or WEDC under previous law, and the total dollar amount that has been
recovered to date as a result of those actions.
6. Before DEO executes a contract awarding a grant, loan, or tax credit to a
person, DEO must conduct a thorough background check of the person that includes
information concerning the person's business performance and a review of any legal
proceedings in which the person is or was a party.
7. DEO must cooperate with the Badger Innovation Corporation to carry out
the corporation's economic development duties, described below.
The bill also creates the Economic Development Policy Board (board), attached
to DEO for limited purposes. The board consists of 12 members nominated by the
governor and appointed with senate confirmation for staggered three-year terms.
The members must have expertise in banking, business financing, and public
economic development administration, and must represent private business and
related stakeholder groups. At least four of the members must have public economic
development administration experience. The board's function is to assist DEO in
setting major economic development policy goals for the state.
Badger Innovation Corporation
Finally, under the bill, the transition council is required to draft and file articles
of incorporation creating the Badger Innovation Corporation as a private nonstock,
nonprofit corporation and draft bylaws for adoption by the board of directors of the
corporation. The composition of the board of directors for the Badger Innovation
Corporation is as follows:
1. The secretary of DEO, who acts as chairperson.
2. One representative to the assembly appointed by the speaker of the
assembly.
3. One representative to the assembly appointed by the minority leader of the
assembly.
4. One senator appointed by the majority leader of the senate.
5. One senator appointed by the minority leader of the senate.
6. Nine members nominated by the governor and appointed with senate
confirmation for staggered three-year terms. The members so appointed must
represent regional and local economic development agencies, private business, and
other related stakeholder groups.
7. The secretaries of administration, revenue, and workforce development, who
shall serve as nonvoting members.
The bill contains a number of requirements imposed on the Badger Innovation
Corporation as a condition for the corporation to receive aid under a state
appropriation. Among other things, the Badger Innovation Corporation must do the
following:
1. Develop and implement economic programs to provide business support and
expertise and financial assistance to companies that are investing and creating jobs
in Wisconsin and to support new business start-ups and business expansion and
growth in Wisconsin.
2. Conduct foreign trade missions, business siting promotion, international
business development, and marketing.
3. Create industry cluster development strategies.
4. Adopt the bylaws for the corporation drafted by the transition council and
maintain the required composition and method of selection of the corporation's board
of directors.
5. Provide public access to its records consistent with the state public records
law.
6. Provide public access to its meetings consistent with the state open meetings
law.
7. Fully cooperate with the Legislative Audit Bureau for purposes of a biennial
financial audit and program evaluation audit of the corporation.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB468,1
1Section
1. 1.12 (1) (b) of the statutes is amended to read:
SB468,8,72
1.12
(1) (b) "State agency" means an office, department, agency, institution of
3higher education, the legislature, a legislative service agency, the courts, a judicial
4branch agency, an association, society, or other body in state government that is
5created or authorized to be created by the constitution or by law, for which
6appropriations are made by law
, excluding the Wisconsin Economic Development
7Corporation.
SB468,2
8Section
2. 13.172 (1) of the statutes is amended to read:
SB468,8,149
13.172
(1) In this section, "agency" means an office, department, agency,
10institution of higher education, association, society, or other body in state
11government created or authorized to be created by the constitution or any law, that
12is entitled to expend moneys appropriated by law, including the legislature and the
13courts, and any authority created in subch. II of ch. 114 or in ch. 231, 233, 234,
238, 14or 279.
SB468,3
15Section
3. 13.48 (10) (b) 6. of the statutes is repealed.
SB468,4
16Section
4. 13.48 (12) (b) 5. of the statutes is repealed.
SB468,5
17Section
5. 13.48 (13) (a) of the statutes is amended to read:
SB468,9,818
13.48
(13) (a) Except as provided in par. (b) or (c), every building, structure or
19facility that is constructed for the benefit of or use of the state, any state agency,
20board, commission or department, the University of Wisconsin Hospitals and Clinics
21Authority, the Fox River Navigational System Authority,
the Wisconsin Economic
1Development Corporation, or any local professional baseball park district created
2under subch. III of ch. 229 if the construction is undertaken by the department of
3administration on behalf of the district, shall be in compliance with all applicable
4state laws, rules, codes and regulations but the construction is not subject to the
5ordinances or regulations of the municipality in which the construction takes place
6except zoning, including without limitation because of enumeration ordinances or
7regulations relating to materials used, permits, supervision of construction or
8installation, payment of permit fees, or other restrictions.
SB468,6
9Section
6. 13.62 (2) of the statutes is amended to read:
SB468,9,1310
13.62
(2) "Agency" means any board, commission, department, office, society,
11institution of higher education, council, or committee in the state government, or any
12authority created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237,
238, or 279,
13except that the term does not include a council or committee of the legislature.
SB468,7
14Section
7. 13.625 (9) of the statutes is amended to read:
SB468,9,2015
13.625
(9) This section does not apply to the solicitation, acceptance, or
16furnishing of anything of pecuniary value by the
Wisconsin Economic Development
17Corporation department of economic opportunity, or to a principal furnishing
18anything of pecuniary value to the
Wisconsin Economic Development Corporation 19department of economic opportunity, under s. 19.56 (3) (e) or (f) for the activities
20specified in s. 19.56 (3) (e).
SB468,8
21Section
8. 13.94 (1) (dr) of the statutes is amended to read:
SB468,9,2522
13.94
(1) (dr) Biennially,
beginning in 2013, conduct a financial audit of the
23Wisconsin Economic Development Corporation department of economic opportunity 24and a program evaluation audit of the economic development programs
25administered by the
Wisconsin Economic Development Corporation department of
1economic opportunity under ch.
238 555. The legislative audit bureau shall file a
2copy of each audit report under this paragraph with the distributees specified in par.
3(b).
SB468,9
4Section
9. 13.94 (1) (ds) of the statutes is created to read:
SB468,10,65
13.94
(1) (ds) 1. In this paragraph and in sub. (1s) (c) 5m., "Badger Innovation
6Corporation" means the corporation specified in s. 16.35 (3).
SB468,10,117
2. Each odd-numbered year, conduct a financial audit of the Badger Innovation
8Corporation and a program evaluation audit of the economic development programs
9conducted by the Badger Innovation Corporation under its contract with the
10department of economic opportunity. The legislative audit bureau shall file a copy
11of each audit report under this subdivision with the distributees specified in par. (b).
SB468,10
12Section
10. 13.94 (1) (ms) of the statutes is amended to read:
SB468,10,1613
13.94
(1) (ms) No later than July 1, 2014, prepare a financial and performance
14evaluation audit of the economic development tax benefit program under ss.
238.301 15555.301 to
238.306 555.306. The legislative audit bureau shall file a copy of the
16report of the audit under this paragraph with the distributees specified in par. (b).
SB468,11
17Section
11. 13.94 (1s) (c) 5. of the statutes is amended to read: