SENATE SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 1
September 6, 2017 - Offered by
Joint Committee on Finance.
AB1-SSA1,2,11
1An Act to renumber 196.192 (2) and 238.399 (4);
to renumber and amend
230.195 (7), 61.57, 62.155, 196.192 (1), 196.192 (3) (a), 196.192 (3) (b) and 196.192
3(4);
to amend 30.123 (6m) (intro.), 66.1105 (2) (f) 1. (intro.), 66.1105 (2) (f) 1. b.,
466.1105 (4) (gm) 4. c., 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.10 (4) (i), 71.21 (4)
5(a), 71.26 (2) (a) 4., 71.30 (3) (f), 71.34 (1k) (g), 77.70, 79.05 (2) (c), 84.0145 (2),
6180.0622 (2), 183.0304 (1), 196.491 (1) (f), 238.12 (1), 238.399 (5m), 281.346 (4)
7(c) 2m., 281.36 (3b) (b), 281.36 (3m) (a) and 809.62 (1r) (intro.); and
to create
813.94 (1) (u), 16.297, 20.395 (6) (ad), 20.445 (1) (bg), 20.505 (1) (fr), 20.835 (2)
9(cp), 20.866 (2) (uuz), 30.12 (1g) (m), 30.123 (6) (f), 30.19 (1m) (h), 30.195 (7) (b),
1061.57 (1) and (2), 62.155 (1) and (2), 66.0203 (2) (bm), 66.0203 (10), 66.0215 (1m),
1166.02162 (1m), 66.0621 (3m), 66.1105 (20), 71.07 (3w) (bm) 5., 71.07 (3wm),
1271.28 (3w) (bm) 5., 71.28 (3wm), 73.0306, 77.54 (65), 84.585, 106.271, 196.192
13(1) (b), 196.192 (2m), 196.49 (5g) (ar) 3., 238.03 (5), 238.396, 238.399 (3) (e),
1238.399 (4) (b), 238.399 (5) (f), 281.36 (4m) and 808.055 of the statutes;
relating
2to: authorizing the creation of an electronics and information technology
3manufacturing zone and, in connection with that zone, authorizing certain tax
4benefits, creating special provisions for tax incremental districts, and creating
5exemptions from wetland and waterway permits and Public Service
6Commission certificates; making changes to the enterprise zone tax credit
7program; authorizing limited use of the design-build construction process;
8authorizing certain counties to issue debt backed by sales and use tax revenue;
9facilitating a worker training and employment program; making changes to
10town incorporation procedures; granting contingent highway bonding
11authority; and making appropriations.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1-SSA1,1m
12Section 1m. 13.94 (1) (u) of the statutes is created to read:
AB1-SSA1,2,1713
13.94
(1) (u) Beginning in 2018, annually for 5 years, evaluate the process used
14by the Wisconsin Economic Development Corporation to verify information under s.
15238.396 (4) (d) and evaluate whether the corporation appropriately verified, in
16accordance with statutory and contractual requirements, the amount of tax credits
17eligible claimants may claim under ss. 71.07 (3wm) and 71.28 (3wm).
AB1-SSA1,2
18Section 2
. 16.297 of the statutes is created to read:
AB1-SSA1,2,20
1916.297 Grants for local government expenditures; moral obligation
20pledge. (1) Definitions. In this section:
AB1-SSA1,2,2321
(a) “Local governmental unit” means a city, village, town, county, or technical
22college district that contains any part of an electronics and information technology
23manufacturing zone designated under s. 238.396 (1m).
AB1-SSA1,3,1
1(b) “Municipal obligation” has the meaning given in s. 67.01 (6).
AB1-SSA1,3,7
2(1m) Grants. From the appropriation under s. 20.505 (1) (fr), the department
3may make one or more grants to a local governmental unit for the local governmental
4unit's expenditures for costs the department determines are associated with
5development occurring in an electronics and information technology manufacturing
6zone designated under s. 238.396 (1m), including costs related to infrastructure and
7public safety.
AB1-SSA1,3,10
8(2) Match. The department may require a local governmental unit to match
9in whole or in part a grant the department makes to the local governmental unit
10under sub. (1m).
AB1-SSA1,3,14
11(3) Moral obligation pledge. (a) Recognizing its moral obligation to do so, the
12legislature expresses its expectation and aspiration that, if ever called upon to do so,
13it shall make an appropriation to pay the principal and interest of a local
14governmental unit's municipal obligations, if all of the following apply:
AB1-SSA1,3,1715
1. The local governmental unit's municipal obligation is issued to finance costs
16related to development occurring in or for the benefit of an electronics and
17information technology manufacturing zone designated under s. 238.396 (1m).
AB1-SSA1,3,2118
2. The secretary designates the moral obligation pledge for the local
19governmental unit's municipal obligation before the municipal obligation is issued,
20based on a plan that the local governmental unit shall submit to the department on
21a form prescribed by the department.
AB1-SSA1,3,2422
(b) No more than 40 percent of a local governmental unit's aggregate municipal
23obligations under par. (a) shall be subject to the moral obligation pledge under that
24paragraph.
AB1-SSA1,4,11
1(c) The proceeds of municipal obligations issued by a local governmental unit
2under this subsection shall be used to finance costs related to development occurring
3in or for the benefit of an electronics and information technology manufacturing zone
4designated under s. 238.396 (1m). The legislature determines that the provision of
5assistance by state agencies to a local governmental unit under this section, any
6appropriation of funds to a local governmental unit under this section, and the moral
7obligation pledge under par. (a) serve a substantial statewide public purpose by
8assisting the development of an electronics and information technology
9manufacturing zone in the state, by encouraging economic development, by reducing
10unemployment, and by bringing needed capital into the state for the benefit and
11welfare of people throughout the state.
AB1-SSA1,4,13
12(4) Contract. The secretary may contract with a local governmental unit to
13implement this section.
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14Section 3
. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
15the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
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1Section 4
. 20.395 (6) (ad) of the statutes is created to read:
AB1-SSA1,5,82
20.395
(6) (ad)
Principal repayment and interest, contingent funding of
3southeast Wisconsin freeway megaprojects, state funds. From the general fund, a sum
4sufficient to reimburse s. 20.866 (1) (u) for the payment of principal and interest costs
5incurred in financing southeast Wisconsin freeway megaprojects, as provided under
6ss. 20.866 (2) (uuz) and 84.585 and 2017 Wisconsin Act .... (this act), section 60 (1c),
7and to make payments under an agreement or ancillary arrangement entered into
8under s. 18.06 (8) (a).
AB1-SSA1,4m
9Section 4m. 20.445 (1) (bg) of the statutes is created to read:
AB1-SSA1,5,1210
20.445
(1) (bg)
Worker training and employment program. As a continuing
11appropriation, the amounts in the schedule for the worker training and employment
12program under s. 106.271.
AB1-SSA1,5
13Section 5
. 20.505 (1) (fr) of the statutes is created to read:
AB1-SSA1,5,1614
20.505
(1) (fr)
Grants for local government expenditures. As a continuing
15appropriation, the amounts in the schedule for grants to local governmental units
16under s. 16.297.
AB1-SSA1,6
17Section 6
. 20.835 (2) (cp) of the statutes is created to read:
AB1-SSA1,6,3
120.835
(2) (cp)
Electronics and information technology manufacturing zone
2credit. A sum sufficient to make the payments under ss. 71.07 (3wm) (d) 2. and 71.28
3(3wm) (d) 2.
AB1-SSA1,7
4Section 7
. 20.866 (2) (uuz) of the statutes is created to read:
AB1-SSA1,6,105
20.866
(2) (uuz)
Transportation; southeast Wisconsin freeway megaprojects
6subject to contingency. From the capital improvement fund, a sum sufficient for the
7department of transportation to fund southeast Wisconsin freeway megaprojects as
8provided under s. 84.585. Subject to 2017 Wisconsin Act .... (this act), section 60 (1c),
9the state may contract public debt in an amount not to exceed $252,400,000 for these
10purposes.
AB1-SSA1,9
11Section 9
. 30.12 (1g) (m) of the statutes is created to read:
AB1-SSA1,6,1512
30.12
(1g) (m) A structure or deposit that is related to the construction, access,
13or operation of a new manufacturing facility in a navigable stream located in an
14electronics and information technology manufacturing zone designated under s.
15238.396 (1m).
AB1-SSA1,10
16Section 10
. 30.123 (6) (f) of the statutes is created to read:
AB1-SSA1,6,2117
30.123
(6) (f) The construction or maintenance of bridges and the construction
18or placement and maintenance of culverts that are related to the construction,
19access, or operation of a new manufacturing facility and that affect a portion of a
20navigable stream within an electronics and information technology manufacturing
21zone designated under s. 238.396 (1m).
AB1-SSA1,11
22Section 11
. 30.123 (6m) (intro.) of the statutes is amended to read:
AB1-SSA1,7,323
30.123
(6m) Permits in lieu of exemptions. (intro.) The department may
24decide to require that a person engaged in an activity that is exempt under sub. (6)
25(d)
or (f) apply for an individual permit or seek authorization under a general permit
1if the department has conducted an investigation and visited the site of the activity
2and has determined that conditions specific to the site require restrictions on the
3activity in order to prevent any of the following:
AB1-SSA1,12
4Section 12
. 30.19 (1m) (h) of the statutes is created to read:
AB1-SSA1,7,85
30.19
(1m) (h) Any activity that affects a portion of a navigable stream and that
6is related to the construction, access, or operation of a new manufacturing facility
7within an electronics and information technology manufacturing zone designated
8under s. 238.396 (1m).
AB1-SSA1,13
9Section 13
. 30.195 (7) of the statutes is renumbered 30.195 (7) (intro.) and
10amended to read:
AB1-SSA1,7,1211
30.195
(7) Application of section. (intro.) This section does not apply to
12municipal any of the following:
AB1-SSA1,7,14
13(a) Municipal or county-owned lands in counties having a population of
14750,000 or more.
AB1-SSA1,14
15Section 14
. 30.195 (7) (b) of the statutes is created to read:
AB1-SSA1,7,1816
30.195
(7) (b) Activity related to the construction, access, or operation of a new
17manufacturing facility located in an electronics and information technology
18manufacturing zone designated under s. 238.396 (1m).
AB1-SSA1,15
19Section 15
. 61.57 of the statutes is renumbered 61.57 (intro.) and amended
20to read:
AB1-SSA1,8,2
2161.57 Acquisition of recycling or resource recovery facilities without
22bids. (intro.) A village may contract for the acquisition of any element of
a recycling
23or resource recovery facility the following without submitting the contract for bids
24as required under s. 61.54 if the village invites developers to submit proposals to
1provide a completed project and evaluates proposals according to site, cost, design
2and the developers' experience in other similar projects
.
:
AB1-SSA1,16
3Section 16
. 61.57 (1) and (2) of the statutes are created to read:
AB1-SSA1,8,44
61.57
(1) A recycling or resource recovery facility.
AB1-SSA1,8,6
5(2) If the village contains an electronics and information technology
6manufacturing zone that is designated under s. 238.396 (1m):
AB1-SSA1,8,77
(a) Water and sewer systems.
AB1-SSA1,8,88
(b) Wastewater treatment facilities.
AB1-SSA1,17
9Section 17
. 62.155 of the statutes is renumbered 62.155 (intro.) and amended
10to read:
AB1-SSA1,8,16
1162.155 Acquisition of recycling or resource recovery facilities without
12bids. (intro.) A city may contract for the acquisition of any element of
a recycling
13or resource recovery facility the following without submitting the contract for bids
14as required under s. 62.15 if the city invites developers to submit proposals to provide
15a completed project and evaluates proposals according to site, cost, design and the
16developers' experience in other similar projects
.
:
AB1-SSA1,18
17Section 18
. 62.155 (1) and (2) of the statutes are created to read:
AB1-SSA1,8,1818
62.155
(1) A recycling or resource recovery facility.
AB1-SSA1,8,20
19(2) If the city contains an electronics and information technology
20manufacturing zone that is designated under s. 238.396 (1m):
AB1-SSA1,8,2121
(a) Water and sewer systems.
AB1-SSA1,8,2222
(b) Wastewater treatment facilities.
AB1-SSA1,18d
23Section 18d. 66.0203 (2) (bm) of the statutes is created to read:
AB1-SSA1,9,3
166.0203
(2) (bm) Once a petition is filed under par. (b), no territory within the
2town may be annexed by any city or village under s. 66.0217 or 66.0219 until 30 days
3after one of the following occurs:
AB1-SSA1,9,54
1. Subject to subd. 2., the petition is dismissed by the court under sub. (8) or
5the board under sub. (9).
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2. If the petition is dismissed as described under subd. 1. and the dismissal is
7appealed as described under s. 66.0209, all appeals are exhausted.
AB1-SSA1,9,88
3. An incorporation referendum is held in the town.
AB1-SSA1,18e
9Section 18e. 66.0203 (10) of the statutes is created to read:
AB1-SSA1,9,1610
66.0203
(10) Certain towns may become a city or village. A town that is
11adjacent to a city or village that contains an electronics and information technology
12manufacturing zone that is designated under s. 238.396 (1m) may become a city or
13village if the town holds, and approves, an incorporation referendum as described in
14s. 66.0211 (3). None of the other procedures contained in ss. 66.0201 to 66.0213 need
15to be fulfilled, and no approval by the board under s. 66.0207 is necessary for the town
16to become a city or village.
AB1-SSA1,18g
17Section 18g. 66.0215 (1m) of the statutes is created to read:
AB1-SSA1,9,2018
66.0215
(1m) Annexation limitation. Once a petition is filed under sub. (1),
19no territory within the town may be annexed by any city or village under s. 66.0217
20or 66.0219 until 30 days after the referendum is held in the town.
AB1-SSA1,18i
21Section 18i. 66.02162 (1m) of the statutes is created to read:
AB1-SSA1,9,2422
66.02162
(1m) Annexation limitation. Once a resolution is adopted under sub.
23(1), no territory within the town may be annexed by any city or village under s.
2466.0217 or 66.0219 until 30 days after the referendum is held in the town.
AB1-SSA1,18k
25Section 18k. 66.0621 (3m) of the statutes is created to read:
AB1-SSA1,10,6
166.0621
(3m) A county in which an electronics and information technology
2manufacturing zone designated under s. 238.396 (1m) exists may issue bonds under
3this section whose principal and interest are paid only through sales and use tax
4revenues imposed by the county under s. 77.70. The county shall be and continue
5without power to repeal such tax or obstruct the collection of the tax until all such
6payments have been made or provided for.
AB1-SSA1,19
7Section 19
. 66.1105 (2) (f) 1. (intro.) of the statutes is amended to read:
AB1-SSA1,10,258
66.1105
(2) (f) 1. (intro.) “Project costs" mean any expenditures made or
9estimated to be made or monetary obligations incurred or estimated to be incurred
10by the city which are listed in a project plan as costs of public works or improvements
11within a tax incremental district or, to the extent provided in this subd. 1. (intro.) or
12subds. 1. k., 1. m., and 1. n.,
or sub. (20) (c), without the district, plus any incidental
13costs, diminished by any income, special assessments, or other revenues, including
14user fees or charges, other than tax increments, received or reasonably expected to
15be received by the city in connection with the implementation of the plan. For any
16tax incremental district for which a project plan is approved on or after July 31, 1981,
17only a proportionate share of the costs permitted under this subdivision may be
18included as project costs to the extent that they benefit the tax incremental district,
19except that expenditures made or estimated to be made or monetary obligations
20incurred or estimated to be incurred by a 1st class city, to fund parking facilities
21ancillary to and within one mile from public entertainment facilities, including a
22sports and entertainment arena, shall be considered to benefit any tax incremental
23district located in whole or in part within a one-mile radius of such parking facilities.
24To the extent the costs benefit the municipality outside the tax incremental district,
25a proportionate share of the cost is not a project cost. “Project costs" include:
AB1-SSA1,19d
1Section 19d. 66.1105 (2) (f) 1. b. of the statutes is amended to read:
AB1-SSA1,11,72
66.1105
(2) (f) 1. b. Financing costs, including, but not limited to, all interest
3paid to holders of evidences of indebtedness issued to pay for project costs
and, any
4premium paid over the principal amount of the obligations because of the redemption
5of the obligations prior to maturity
, and payments made by the city or village to a
6county or other municipality that issues obligations to finance project costs of a
7district pursuant to sub. (20).
AB1-SSA1,20
8Section 20
. 66.1105 (4) (gm) 4. c. of the statutes is amended to read:
AB1-SSA1,11,209
66.1105
(4) (gm) 4. c. Except as provided in subs. (10) (c), (16) (d), (17),
and (18)
10(c) 3.,
and (20) (b), the equalized value of taxable property of the district plus the
11value increment of all existing districts does not exceed 12 percent of the total
12equalized value of taxable property within the city. In determining the equalized
13value of taxable property under this subd. 4. c. or sub. (17) (c), the department of
14revenue shall base its calculations on the most recent equalized value of taxable
15property of the district that is reported under s. 70.57 (1m) before the date on which
16the resolution under this paragraph is adopted. If the department of revenue
17determines that a local legislative body exceeds the 12 percent limit described in this
18subd. 4. c. or sub. (17) (c), the department shall notify the city of its noncompliance,
19in writing, not later than December 31 of the year in which the department receives
20the completed application or amendment forms described in sub. (5) (b).
AB1-SSA1,21
21Section 21
. 66.1105 (20) of the statutes is created to read:
AB1-SSA1,12,222
66.1105
(20) Districts within an electronics and information technology
23manufacturing zone. (a)
Creation. With regard to a tax incremental district that
24is created in an electronics and information technology manufacturing zone that is
25designated under s. 238.396 (1m),
the district may only be a district that is suitable
1for industrial sites or mixed-use development, as described in sub. (4) (gm) 4. a., and
2all of the following apply:
AB1-SSA1,12,93
1. Notwithstanding the dates specified in sub. (4) (gm) 2., if the resolution
4described under sub. (4) (gm) is adopted during the period between January 1 and
5December 1, the creation date shall be either the January 1 of the year in which the
6resolution is adopted or the next subsequent January 1, as specified by the local
7legislative body in the resolution. If a resolution is adopted during the period
8between December 2 and December 31, the creation date shall be the next
9subsequent January 1.
AB1-SSA1,12,1210
2. Notwithstanding the October 31 deadline for the city clerk's submission of
11the forms described in sub. (5) (b), the city clerk shall complete and submit the
12required forms for a tax incremental district described in this subsection either:
AB1-SSA1,12,1613
a. On or before December 31 of the year the resolution under subd. 1. is adopted
14if the resolution is adopted between January 1 and December 1, and the resolution
15specifies that the district's creation date is January 1 of the year in which the
16resolution is adopted.
AB1-SSA1,12,2117
b. On or after the next subsequent April 1 and before the next subsequent
18December 1 of the year the resolution under subd. 1. is adopted if the resolution is
19adopted between January 1 and December 1 and the resolution specifies that the
20district's creation date is the next subsequent January 1 or the resolution is adopted
21between December 2 and December 31.
AB1-SSA1,12,2322
(b)
Exception to the 12 percent limit. Notwithstanding the 12 percent limit
23findings requirement described under sub. (4) (gm) 4. c.:
AB1-SSA1,12,2524
1. That findings requirement does not apply to a local legislative body's
25resolution which relates to a district described under this subsection.
AB1-SSA1,13,6
12. After a local legislative body's creation of a district described under this
2subsection, if that body makes the calculation under sub. (4) (gm) 4. c. for a tax
3incremental district created under this section but not under this subsection, that
4findings requirement may not include the value increment of the district created
5under this subsection, provided that the district created under this subsection has
6not terminated.
AB1-SSA1,13,97
(c)
Expenditures. With regard to a tax incremental district described under this
8subsection, and subject to par. (ce), the creating city may incur project costs for any
9of the following, provided that the expenditures benefit the district:
AB1-SSA1,13,1010
1. Territory that is located in the same county as the district.
AB1-SSA1,13,2111
2. Notwithstanding the provisions of sub. (2) (f) 2. a. and c., the cost of
12constructing or expanding fire stations, purchasing police and fire equipment, and
13the cost of general government operating expenses related to providing police and
14fire protection services, provided that the total of such expenditures do not exceed,
15over the district's lifetime, 15 percent of the total positive tax increments received by
16the creating city over the district's lifetime. With regard to capital expenditures that
17may be made under this subdivision, such expenditures may be made only for the
18first 84 months following the district's creation, and any expenditures made under
19this subdivision for constructing or expanding fire stations may be made only for fire
20stations located within a one-mile radius of the electronics and information
21technology manufacturing zone that is designated under s. 238.396 (1m).