SB468: Bill Text

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 Section 1. 1.12 (1) (b) of the statutes is amended to read:

SB468,8,7 1.12 (1) (b) "State agency" means an office, department, agency, institution of higher education, the legislature, a legislative service agency, the courts, a judicial branch agency, an association, society, or other body in state government that is created or authorized to be created by the constitution or by law, for which appropriations are made by law, excluding the Wisconsin Economic Development Corporation.

SB468,2 Section 2. 13.172 (1) of the statutes is amended to read:

SB468,8,14 13.172 (1) In this section, "agency" means an office, department, agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, and any authority created in subch. II of ch. 114 or in ch. 231, 233, 234, 238, or 279.

SB468,3 Section 3. 13.48 (10) (b) 6. of the statutes is repealed.

SB468,4 Section 4. 13.48 (12) (b) 5. of the statutes is repealed.

SB468,5 Section 5. 13.48 (13) (a) of the statutes is amended to read:

SB468,9,8 13.48 (13) (a) Except as provided in par. (b) or (c), every building, structure or facility that is constructed for the benefit of or use of the state, any state agency, board, commission or department, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Economic Development Corporation, or any local professional baseball park district created under subch. III of ch. 229 if the construction is undertaken by the department of administration on behalf of the district, shall be in compliance with all applicable state laws, rules, codes and regulations but the construction is not subject to the ordinances or regulations of the municipality in which the construction takes place except zoning, including without limitation because of enumeration ordinances or regulations relating to materials used, permits, supervision of construction or installation, payment of permit fees, or other restrictions.

SB468,6 Section 6. 13.62 (2) of the statutes is amended to read:

SB468,9,13 13.62 (2) "Agency" means any board, commission, department, office, society, institution of higher education, council, or committee in the state government, or any authority created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237, 238, or 279, except that the term does not include a council or committee of the legislature.

SB468,7 Section 7. 13.625 (9) of the statutes is amended to read:

SB468,9,20 13.625 (9) This section does not apply to the solicitation, acceptance, or furnishing of anything of pecuniary value by the Wisconsin Economic Development Corporation department of economic opportunity, or to a principal furnishing anything of pecuniary value to the Wisconsin Economic Development Corporation department of economic opportunity, under s. 19.56 (3) (e) or (f) for the activities specified in s. 19.56 (3) (e).

SB468,8 Section 8. 13.94 (1) (dr) of the statutes is amended to read:

SB468,9,25 13.94 (1) (dr) Biennially, beginning in 2013, conduct a financial audit of the Wisconsin Economic Development Corporation department of economic opportunity and a program evaluation audit of the economic development programs administered by the Wisconsin Economic Development Corporation department of economic opportunity under ch. 238 555. The legislative audit bureau shall file a copy of each audit report under this paragraph with the distributees specified in par. (b).

SB468,9 Section 9. 13.94 (1) (ds) of the statutes is created to read:

SB468,10,6 13.94 (1) (ds) 1. In this paragraph and in sub. (1s) (c) 5m., "Badger Innovation Corporation" means the corporation specified in s. 16.35 (3).

SB468,10,11 2. Each odd-numbered year, conduct a financial audit of the Badger Innovation Corporation and a program evaluation audit of the economic development programs conducted by the Badger Innovation Corporation under its contract with the department of economic opportunity. The legislative audit bureau shall file a copy of each audit report under this subdivision with the distributees specified in par. (b).

SB468,10 Section 10. 13.94 (1) (ms) of the statutes is amended to read:

SB468,10,16 13.94 (1) (ms) No later than July 1, 2014, prepare a financial and performance evaluation audit of the economic development tax benefit program under ss. 238.301 555.301 to 238.306 555.306. The legislative audit bureau shall file a copy of the report of the audit under this paragraph with the distributees specified in par. (b).

SB468,11 Section 11. 13.94 (1s) (c) 5. of the statutes is amended to read:

SB468,10,20 13.94 (1s) (c) 5. The Wisconsin Economic Development Corporation department of economic opportunity for the cost of the audit required to be performed under sub. (1) (dr).

SB468,12 Section 12. 13.94 (1s) (c) 5m. of the statutes is created to read:

SB468,10,23 13.94 (1s) (c) 5m. The Badger Innovation Corporation for the cost of the audit required to be performed under sub. (1) (ds).

SB468,13 Section 13. 13.94 (4) (a) 1. of the statutes is amended to read:

SB468,11,16 13.94 (4) (a) 1. Every state department, board, examining board, affiliated credentialing board, commission, independent agency, council or office in the executive branch of state government; all bodies created by the legislature in the legislative or judicial branch of state government; any public body corporate and politic created by the legislature including specifically the Fox River Navigational System Authority, the Lower Fox River Remediation Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, a professional baseball park district, a local professional football stadium district, a local cultural arts district and a long-term care district under s. 46.2895; every Wisconsin works agency under subch. III of ch. 49; every provider of medical assistance under subch. IV of ch. 49; technical college district boards; every county department under s. 51.42 or 51.437; every nonprofit corporation or cooperative or unincorporated cooperative association to which moneys are specifically appropriated by state law; and every corporation, institution, association or other organization which receives more than 50% of its annual budget from appropriations made by state law, including subgrantee or subcontractor recipients of such funds.

SB468,14 Section 14. 13.95 (intro.) of the statutes is amended to read:

SB468,12,5 13.95 Legislative fiscal bureau. (intro.) There is created a bureau to be known as the "Legislative Fiscal Bureau" headed by a director. The fiscal bureau shall be strictly nonpartisan and shall at all times observe the confidential nature of the research requests received by it; however, with the prior approval of the requester in each instance, the bureau may duplicate the results of its research for distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's designated employees shall at all times, with or without notice, have access to all state agencies, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the Wisconsin Economic Development Corporation, and the Fox River Navigational System Authority, and to any books, records, or other documents maintained by such agencies or authorities and relating to their expenditures, revenues, operations, and structure.

SB468,15 Section 15. 15.107 (20) of the statutes is created to read:

SB468,12,9 15.107 (20) Economic development transition council. (a) There is created an economic development transition council, attached to the department of administration under s. 15.03.

SB468,12,10 (b) The council consists of the following members:

SB468,12,11 1. Five members appointed by the governor.

SB468,12,13 2. One representative to the assembly appointed by the speaker of the assembly.

SB468,12,15 3. One representative to the assembly appointed by the minority leader of the assembly.

SB468,12,16 4. One senator appointed by the majority leader of the senate.

SB468,12,17 5. One senator appointed by the minority leader of the senate.

SB468,12,19 6. The chief executive officer, chief operating officer, and chief financial officer of the Wisconsin Economic Development Corporation.

SB468,12,20 7. The secretary of administration.

SB468,12,21 8. The secretary of revenue.

SB468,12,23 (c) The members appointed under par. (b) 1. shall include representatives of local and regional economic development agencies.

SB468,12,25 (d) The Wisconsin Economic Development Corporation shall provide staffing and facilities for the council.

SB468,13,1 (e) The council shall be dissolved on January 1, 2019.

SB468,16 Section 16. 15.107 (20) of the statutes, as created by 2015 Wisconsin Act .... (this act), is repealed.

SB468,17 Section 17. 15.15 of the statutes is created to read:

SB468,13,7 15.15 Department of economic opportunity; creation. There is created a department of economic opportunity under the direction and supervision of the secretary of economic opportunity.

SB468,18 Section 18. 15.155 of the statutes is created to read:

SB468,13,13 15.155 Same; attached boards and commissions. (1) Economic development policy board. (a) There is created an economic development policy board attached to the department of economic opportunity under s. 15.03 consisting of 12 members nominated by the governor and, with the advice and consent of the senate, appointed for staggered 3-year terms.

SB468,13,17 (b) The members appointed under par. (a) shall have expertise in banking, business financing, and public economic development administration, and shall represent private business and related stakeholder groups. At least 4 of those members shall have public economic development administration experience.

SB468,13,20 (c) The economic development policy board shall assist the department of economic opportunity in setting major economic development policy goals for the state.

SB468,19 Section 19. 16.002 (2) of the statutes is amended to read:

SB468,13,25 16.002 (2) "Departments" means constitutional offices, departments, and independent agencies and includes all societies, associations, and other agencies of state government for which appropriations are made by law, but not including authorities created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237, 238, or 279.

SB468,20 Section 20. 16.004 (4) of the statutes is amended to read:

SB468,14,7 16.004 (4) Freedom of access. The secretary and such employees of the department as the secretary designates may enter into the offices of state agencies and authorities created under subch. II of ch. 114 and under chs. 231, 233, 234, 237, 238, and 279, and may examine their books and accounts and any other matter that in the secretary's judgment should be examined and may interrogate the agency's employees publicly or privately relative thereto.

SB468,21 Section 21. 16.004 (5) of the statutes is amended to read:

SB468,14,12 16.004 (5) Agencies and employees to cooperate. All state agencies and authorities created under subch. II of ch. 114 and under chs. 231, 233, 234, 237, 238, and 279, and their officers and employees, shall cooperate with the secretary and shall comply with every request of the secretary relating to his or her functions.

SB468,22 Section 22. 16.045 (1) (a) of the statutes is amended to read:

SB468,14,19 16.045 (1) (a) "Agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237, 238, or 279.