Generally, if a resolution creating a TID is adopted between January 2 and
September 30, the TID is considered to have been created on the previous January
1, and if a resolution creating a TID is adopted between October 1 and December 31,
its creation date is considered to be the following January 1. In addition, forms
required by DOR must be submitted to the department by October 31 of the year in
which the TID is created.
Also under current law, once a TID has been created, DOR calculates the “tax
incremental base" value of the TID, which is the equalized value of all taxable
property within the TID at the time of its creation. If the development in the TID
increases the value of the property in the TID above the base value, a value
increment is created. That portion of taxes collected on the value increment in excess
of the base value is called a “tax increment" and is placed in a fund that may be used
only to pay back the project costs of the TID.
The project costs of a TID, which are initially incurred by the creating city or
village, include public works such as sewers, streets, and lighting systems; financing
costs; site preparation costs; and professional service costs. DOR authorizes the
allocation of the tax increments until the TID terminates or, generally, 20 years, 23
years, or 27 years after the TID is created, depending on the type of TID and the year
in which it was created. Also under current law, a city or village may not generally
make expenditures for project costs later than five years before the unextended
termination date of the TID. Under certain circumstances, the life of the TID, the
expenditure period, and the allocation period may be extended.
Generally, under current law, expenditures for project costs must be spent
within the boundaries of the TID, although limited exceptions allow expenditures to
be made within a one-half-mile radius of the TID's boundaries. Also, with regard
to TIDs created after September 30, 2004, the territory of which is mostly suitable
for industrial sites or mixed-use development, the TIDs must generally terminate
not later than 20 years after their creation.
Subject to a number of exceptions, under current law, the equalized value of
taxable property of a new or amended TID plus the value increment of all existing
TIDs may not exceed 12 percent of the total equalized value of taxable property in
the city or village.
Under this substitute amendment, for TIDs that are created in an area that
includes an electronics and information technology manufacturing zone (zone), a
number of exceptions apply to the normal provisions governing TIDs, including the
1. The TID that is created must be an industrial site or mixed-use TID.
2. If the resolution creating the TID is adopted between January 1 and
December 1, the creating city or village may decide if the TID is considered to have
been created on the January 1 of the year in which the resolution is adopted or on
the following January 1, and the forms required by DOR must be submitted before
December 31 of the year in which the resolution is adopted or between the following
April 1 and the following December 1, depending on the TID's creation date.
3. The 12 percent rule regarding the total equalized value for taxable property
in the city or village does not apply to the creation of the TID that includes a zone,
and if the creating city or village then creates another TID, the value increment of
the TID that includes the zone is not included in the calculation under the 12 percent
rule for that new TID.
4. Subject to a number of limitations, the city or village creating the TID may
incur expenditures for project costs for any territory that is located in the same
county in which the TID is located, provided that the expenditure benefits the TID,
and may incur project costs for fire stations, police and fire equipment, and general
5. Instead of limiting to 20 years the period during which DOR may allocate
positive tax increments, the allocation period is 30 years.
6. Instead of requiring the TID to terminate no later than 20 years after
creation, the TID must terminate within 30 years after it is created.
7. Instead of limiting the time period during which expenditures may be made
to no later than five years before the termination date of the TID, expenditures may
be made up to the termination date.
The substitute amendment authorizes a county in which a zone is located to
issue bonds whose principal and interest are paid only through sales and use tax
revenue. Currently, such county debt may be paid only by property tax revenue. Also
under current law, county sales tax revenue may be used only for the purpose of
directly reducing the county property tax levy.
Town incorporation as a city or village
Once residents of a town file with the circuit court, or the town clerk, a petition
to incorporate as a city or village, and once certain town boards initiate a procedure
to incorporate as a village, the substitute amendment prohibits any city or village
from annexing any of that town's territory until 30 days after the petition is
dismissed, all appeals of the petition dismissal are exhausted, or an incorporation
referendum is held in the town.
The substitute amendment also authorizes a town that is adjacent to a city or
village that contains a zone to incorporate as a city or village if the town approves
an incorporation referendum. None of the current law procedures, including
hearings, circuit court review, and incorporation review board analysis, apply to such
a town's incorporation procedure.
Environmental impact statements
Under current law, all state agencies are required to prepare environmental
impact statements for every recommendation or report on proposals for legislation
and other major actions significantly affecting the quality of the human
environment. A state agency is required to consider an environmental impact
statement in its decision-making process, but the statement has no regulatory
consequence. Current federal law under the National Environmental Policy Act also
requires federal agencies to prepare an environmental impact statement for any
major federal action, including for federal permits that are necessary for actions in
the state. Under the substitute amendment, a determination regarding the issuance
of any permit or approval for a new manufacturing facility within an electronics and
information technology manufacturing zone is not a major action for the purpose of
the environmental impact statement requirement.
Wetlands and waterway permits exemption
Under federal law, activities involving the discharge of dredged or fill material
into “navigable waters” must comply with certain guidelines contained in
regulations promulgated by the federal Environmental Protection Agency in order
for a discharge permit to be issued by the U.S. Army Corps of Engineers (ACE).
Before ACE may issue a permit, the Department of Natural Resources must
determine that the project complies with state water quality standards, including
those for wetlands (water quality certification). Federal law defines “navigable
waters” to be “the waters of the United States.” Generally, courts have interpreted
“the waters of the United States” to exclude nonnavigable, isolated, intrastate
waters (nonfederal wetlands).
Under current state law, subject to exceptions, no person may discharge
dredged material or fill material into a federal or nonfederal wetland unless the
discharge is authorized by a wetland general permit or individual permit or the
discharge is exempt from permitting requirements. Current law requires DNR to
issue wetland general permits for discharges of dredged or fill material into certain
federal and nonfederal wetlands. For a discharge into a wetland that is not
authorized under a wetland general permit, current law requires a person to apply
for and obtain a wetland individual permit. Before DNR may issue a wetland
individual permit, it must require the restoration, enhancement, creation, or
preservation of other wetlands to compensate for adverse impacts to a wetland
resulting from the discharge, also known as mitigation. Under current law, a
wetland general or individual permit issued by DNR constitutes water quality
Under this substitute amendment, a person may, without a permit, discharge
dredged material or fill material into a nonfederal wetland that is located in an
electronics and information technology manufacturing zone if the discharge is
related to the construction, access, or operation of a new manufacturing facility that
is also located in the zone. With respect to a federal wetland located in an electronics
and information technology manufacturing zone, the substitute amendment
provides that no state permit is required and that the state waives water quality
certification. Under the substitute amendment, a federal permit for such a discharge
is still required. The substitute amendment requires any adverse impacts to
functional values of federal or nonfederal wetlands in an electronics and information
technology manufacturing zone to be compensated at a ratio of two acres per each
acre impacted through the purchase of credits from a mitigation bank, participation
in the in lieu fee subprogram or escrow subprogram administered by DNR, or
completion of mitigation within this state. Under current law, the general minimum
ratio is 1.2 acres for each acre affected by the discharge. If compensation occurs
through participation in the in lieu fee subprogram, the substitute amendment
requires DNR to identify and consider mitigation that could be conducted within the
same watershed and authorizes locating mitigation outside the watershed only upon
agreement of DNR and the person exempt from wetland permitting.
Under current law, subject to exceptions, no person may do any of the following
without a permit issued by DNR: 1) deposit any material or place any structure upon
the bed of any navigable water where no bulkhead line has been established or
beyond a lawfully established bulkhead line; 2) construct or maintain a bridge or
construct, place, or maintain a culvert in, on, or over navigable waters; 3) construct,
dredge, or enlarge any artificial water body that connects with an existing navigable
waterway; 4) construct or enlarge any part of an artificial water body that is or will
be located within 500 feet of the ordinary high-water mark of, but that does not or
will not connect with, an existing navigable waterway; 5) grade or remove topsoil
from the bank of any navigable waterway where the area exposed by the grading or
removal will exceed 10,000 square feet; or 6) change the course of or straighten a
Under the substitute amendment, DNR generally may not require a permit for
any of these activities if they relate to the construction, access, or operation of a new
manufacturing facility located in an electronics and information technology
manufacturing zone. However, the substitute amendment provides that DNR may
require a permit for the construction or maintenance of bridges and the construction
or placement and maintenance of culverts in a zone if DNR determines that
conditions specific to the site require restrictions in order to prevent significant
adverse impacts to the public rights and interests, environmental pollution, or
material injury to the riparian rights of any riparian owner.
Department of Natural Resources oversight
Except as otherwise specifically provided, the substitute amendment requires
DNR to ensure that the conditions of applicable permits, licenses, and approvals
under DNR's jurisdiction are met for all activities related to the construction, access,
or operation of a new manufacturing facility within an electronics and information
technology manufacturing zone, including permits, licenses, and approvals required
under current law and any associated rules promulgated by DNR.
Public Service Commission certificates and market-based rates
This substitute amendment exempts public utility projects that primarily serve
a new customer within an electronics and information technology manufacturing
zone from obtaining a certificate of authority from the Public Service Commission,
which current law generally requires for construction, improvement, and other
projects of public utilities. The substitute amendment also exempts transmission
line relocations within such a zone from obtaining a certificate of public convenience
and necessity from the PSC, which current law generally requires before beginning
construction of high-voltage transmission lines and associated facilities.
The substitute amendment also requires an electric public utility that provides
service to an electronics and information technology manufacturing zone to file
tariffs with the PSC for market-based pricing and options for a new retail customer
within the zone that the PSC determines is eligible for the electronics and
information technology manufacturing zone credit created by the substitute
amendment. The substitute amendment requires the tariffs to be filed no later than
January 1, 2020. The substitute amendment specifies requirements that must be
included in the tariffs and requires the PSC to approve rates that are consistent with
Grants to local governments
This substitute amendment authorizes the Department of Administration to
make grants to local governmental units for costs associated with development in an
electronics and information technology manufacturing zone, including costs related
to infrastructure and public safety. DOA may require a local governmental unit to
match a grant in whole or in part.
Contingent highway bonding authorization
This substitute amendment authorizes the state to contract up to $252,400,000
in general obligation public debt for the I 94 north-south corridor project. The
Department of Transportation, however, may not expend the proceeds of these bonds
unless the state receives an award of federal moneys for the project and the joint
committee on finance approves the expenditure.
This substitute amendment authorizes a city or village in which an electronics
and information technology manufacturing zone is located to contract for the
acquisition of water and sewer systems and wastewater treatment facilities using
the design-build system. Under this system, the city or village invites developers
to submit proposals to provide completed projects in these areas without following
the bidding requirements for public works projects that would otherwise apply.
Current law authorizes the use of this system by any city, village, or county for the
acquisition of recycling or resource recovery facilities.
Under current law, WEDC may designate areas within the state as “enterprise
zones.” WEDC may certify a business in an enterprise zone to receive income and
franchise tax credits if the business creates or retains jobs in the enterprise zone,
subject to several limitations. The substitute amendment makes the following
changes to the enterprise zone tax credit program:
1. Authorizes WEDC to increase from 30 to 35 the number of designated
2. Authorizes WEDC to cancel the designation of an enterprise zone if WEDC
revokes all certifications for tax credits within the zone. WEDC may designate a new
enterprise zone if it cancels an existing zone designation.
3. Authorizes WEDC to designate a new enterprise zone if an existing
enterprise zone expires. Under current law, an enterprise zone designation expires
after 12 years.
4. Authorizes WEDC to certify for enterprise zone tax credits a financial
services technology business that, after completing a competitive corporate
relocation process, retains its corporate headquarters and at least 93 percent of its
full-time employees, as determined by WEDC, in Wisconsin.
New positions related to economic development
This substitute amendment creates an economic development liaison project
position in the unclassified service of the state civil service. The substitute
amendment also requires WEDC to hire a full-time employee to be known as the
electronics manufacturing small business development director. The director's
duties include coordinating with the economic development liaison in the
department of administration and providing outreach to local economic development
organizations. Both of those positions sunset as of December 31, 2022.
Worker training and employment program
This substitute amendment requires the Department of Workforce
Development to allocate funding in the 2019-21 fiscal biennium for a program to
facilitate worker training and employment. In implementing the program, DWD is
required to consult the Technical College System Board and WEDC.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
16.297 of the statutes is created to read:
216.297 Grants for local government expenditures; moral obligation
3pledge. (1) Definitions.
In this section:
(a) “Local governmental unit” means a city, village, town, or county that 5
contains any part of an electronics and information technology manufacturing zone 6
designated under s. 238.396 (1m).
(b) “Municipal obligation” has the meaning given in s. 67.01 (6).
From the appropriation under s. 20.505 (1) (fr), the department 2
may make one or more grants to a local governmental unit for the local governmental 3
unit's expenditures for costs the department determines are associated with 4
development occurring in an electronics and information technology manufacturing 5
zone designated under s. 238.396 (1m), including costs related to infrastructure and 6
The department may require a local governmental unit to match 8
in whole or in part a grant the department makes to the local governmental unit 9
under sub. (1m).
The secretary may contract with a local governmental unit to 11
implement subs. (1m) and (2).
12(3) Moral obligation pledge
. (a) Recognizing its moral obligation to do so, the 13
legislature expresses its expectation and aspiration that, if ever called upon to do so, 14
it shall make an appropriation to pay the principal and interest of a local 15
governmental unit's municipal obligations, if all of the following apply:
1. The local governmental unit's municipal obligation is issued to finance costs 17
related to development occurring in or for the benefit of an electronics and 18
information technology manufacturing zone designated under s. 238.396 (1m).
2. The secretary designates the moral obligation pledge for the local 20
governmental unit's municipal obligation before the municipal obligation is issued, 21
based on a plan that the local governmental unit shall submit to the department on 22
a form prescribed by the department.
(b) No more than 40 percent of a local governmental unit's aggregate municipal 24
obligations under par. (a) shall be subject to the moral obligation pledge under that 25
(c) The proceeds of municipal obligations issued by a local governmental unit 2
under this subsection shall be used to finance costs related to development occurring 3
in or for the benefit of an electronics and information technology manufacturing zone 4
designated under s. 238.396 (1m). The legislature determines that the provision of 5
assistance by state agencies to a local governmental unit under this section, any 6
appropriation of funds to a local governmental unit under this section, and the moral 7
obligation pledge under par. (a) serve a substantial statewide public purpose by 8
assisting the development of an electronics and information technology 9
manufacturing zone in the state, by encouraging economic development, by reducing 10
unemployment, and by bringing needed capital into the state for the benefit and 11
welfare of people throughout the state.
20.005 (3) (schedule) of the statutes: at the appropriate place, insert 13
the following amounts for the purposes indicated:
- See PDF for table
20.395 (6) (ad) of the statutes is created to read:
(ad) Principal repayment and interest, contingent funding of
2southeast Wisconsin freeway megaprojects, state funds
. From the general fund, a sum 3
sufficient to reimburse s. 20.866 (1) (u) for the payment of principal and interest costs 4
incurred in financing southeast Wisconsin freeway megaprojects, as provided under 5
ss. 20.866 (2) (uuz) and 84.585 and 2017 Wisconsin Act .... (this act), section 60 (1), 6
and to make payments under an agreement or ancillary arrangement entered into 7
under s. 18.06 (8) (a).
20.445 (1) (bg) of the statutes is created to read:
(bg) Worker training and employment program.
As a continuing 10
appropriation, the amounts in the schedule for the worker training and employment 11
program under s. 106.271.
20.505 (1) (fr) of the statutes is created to read:
(fr) Grants for local government expenditures.
As a continuing 14
appropriation, the amounts in the schedule for grants to local governmental units 15
under s. 16.297.
20.835 (2) (cp) of the statutes is created to read:
(cp) Electronics and information technology manufacturing zone
. A sum sufficient to make the payments under ss. 71.07 (3wm) (d) 2. and 71.28 19
(3wm) (d) 2.
20.866 (2) (uuz) of the statutes is created to read:
(uuz) Transportation; southeast Wisconsin freeway megaprojects
22subject to contingency
. From the capital improvement fund, a sum sufficient for the 23
department of transportation to fund southeast Wisconsin freeway megaprojects as 24
provided under s. 84.585. Subject to 2017 Wisconsin Act .... (this act), section 60 (1),
the state may contract public debt in an amount not to exceed $252,400,000 for these 2
30.12 (1g) (m) of the statutes is created to read:
(m) A structure or deposit that is related to the construction, access, 5
or operation of a new manufacturing facility in a navigable stream located in an 6
electronics and information technology manufacturing zone designated under s. 7
30.123 (6) (f) of the statutes is created to read:
(f) The construction or maintenance of bridges and the construction 10
or placement and maintenance of culverts that are related to the construction, 11
access, or operation of a new manufacturing facility and that affect a portion of a 12
navigable stream within an electronics and information technology manufacturing 13
zone designated under s. 238.396 (1m).
30.123 (6m) (intro.) of the statutes is amended to read:
30.123 (6m) Permits in lieu of exemptions.
(intro.) The department may 16
decide to require that a person engaged in an activity that is exempt under sub. (6) 17
(d) or (f)
apply for an individual permit or seek authorization under a general permit 18
if the department has conducted an investigation and visited the site of the activity 19
and has determined that conditions specific to the site require restrictions on the 20
activity in order to prevent any of the following:
30.19 (1m) (h) of the statutes is created to read:
(h) Any activity that affects a portion of a navigable stream and that 23
is related to the construction, access, or operation of a new manufacturing facility 24
within an electronics and information technology manufacturing zone designated 25
under s. 238.396 (1m).
30.195 (7) of the statutes is renumbered 30.195 (7) (intro.) and 2
amended to read:
30.195 (7) Application of section.
(intro.) This section does not apply to 4municipal any of the following:
or county-owned lands in counties having a population of 6
750,000 or more.
30.195 (7) (b) of the statutes is created to read:
(b) Activity related to the construction, access, or operation of a new 9
manufacturing facility located in an electronics and information technology 10
manufacturing zone designated under s. 238.396 (1m).
61.57 of the statutes is renumbered 61.57 (intro.) and amended 12
1361.57 Acquisition of recycling or resource recovery facilities without
(intro.) A village may contract for the acquisition of any element of a recycling
15or resource recovery facility the following
without submitting the contract for bids 16
as required under s. 61.54 if the village invites developers to submit proposals to 17
provide a completed project and evaluates proposals according to site, cost, design 18
and the developers' experience in other similar projects.
61.57 (1) and (2) of the statutes are created to read:
A recycling or resource recovery facility.