AU7 AB1: Bill Text Engrossed

AB1-engrossed,48s Section 48s. 238.12 (1) of the statutes is amended to read:

AB1-engrossed,35,6 238.12 (1) In this section, “tax benefits" means the credits under ss. 71.07 (2dm), (2dx), (3g), and (3t), and (3wm), 71.28 (1dm), (1dx), (3g), and (3t), and (3wm), 71.47 (1dm), (1dx), (3g), and (3t), and 76.636.

AB1-engrossed,49 Section 49. 238.396 of the statutes is created to read:

AB1-engrossed,35,10 238.396 Electronics and information technology manufacturing zone. (1) Definition. In this section, “tax benefits” means the income and franchise tax credits under ss. 71.07 (3wm) and 71.28 (3wm).

AB1-engrossed,35,12 (1m) Designation of zone; criteria. (a) The corporation may designate not more than one electronics and information technology manufacturing zone.

AB1-engrossed,35,14 (b) In determining whether to designate an area under par. (a), the corporation shall consider all of the following:

AB1-engrossed,35,18 1. Indicators of the area's economic need, which may include data regarding household income, average wages, the condition of property, housing values, population decline, job losses, infrastructure and energy support, the rate of business development, and the existing resources available to the area.

AB1-engrossed,35,21 2. The effect of designation on other initiatives and programs to promote economic and community development in the area, including job retention, job creation, job training, and creating high-paying jobs.

AB1-engrossed,35,23 (d) The corporation shall, to the extent possible, give preference to the greatest economic need.

AB1-engrossed,35,25 (2) Time limit. A designation under sub. (1m) shall remain in effect for no more than 15 years.

AB1-engrossed,36,2 (3) Certification. The corporation may certify for tax benefits a business that begins operations in an electronics and information technology manufacturing zone.

AB1-engrossed,36,10 (3m) Additional tax benefits for significant capital expenditures. If the corporation determines that a business certified under sub. (3) makes a significant capital expenditure in the electronics and information technology manufacturing zone, the corporation may certify the business to receive additional tax benefits in an amount to be determined by the corporation, but not exceeding 15 percent of the business's capital expenditures. The corporation shall, in a manner determined by the corporation, allocate the tax benefits a business is certified to receive under this subsection over a period of 7 years.

AB1-engrossed,36,13 (3s) Limitations on tax benefits. (a) The corporation may not issue certifications to claim tax benefits under ss. 71.07 (3wm) (b) and 71.28 (3wm) (b) that total more than $1,500,000,000.

AB1-engrossed,36,15 (b) The corporation may not issue certifications to claim tax benefits under ss. 71.07 (3wm) (bm) and 71.28 (3wm) (bm) that total more than $1,350,000,000.

AB1-engrossed,36,17 (4) Other duties. (a) The corporation shall revoke a certification under sub. (3) if the business does any of the following:

AB1-engrossed,36,18 1. Supplies false or misleading information to obtain tax benefits.

AB1-engrossed,36,20 2. Leaves the electronics and information technology manufacturing zone to conduct substantially the same business outside the zone.

AB1-engrossed,36,23 3. Ceases operations in the electronics and information technology manufacturing zone and does not renew operation of the business or a similar business in the zone within 12 months.

AB1-engrossed,37,2 (b) The corporation may require a business to repay any tax benefits the business claims for a year in which the business failed to maintain employment levels or a significant capital investment in property required by an agreement between the business and the corporation.

AB1-engrossed,37,5 (c) The corporation shall determine the maximum amount of the tax benefits that a certified business may claim and shall notify the department of revenue of this amount.

AB1-engrossed,37,7 (d) The corporation shall annually verify the information submitted to the corporation under ss. 71.07 (3wm) and 71.28 (3wm).

AB1-engrossed,37,9 (f) The corporation shall adopt policies and procedures defining “significant capital expenditure” for purposes of sub. (3m).

AB1-engrossed,37,12 (g) The corporation shall, to the extent possible, attempt to include terms in any agreement negotiated between the corporation and a business certified under sub. (3) that encourage the business's hiring of Wisconsin residents.

AB1-engrossed,37,16 (5) No environmental impact statement required. The issuance of any permit or approval for a new manufacturing facility within an electronics and information technology manufacturing zone designated under this section is not a major action for the purposes of s. 1.11 (2) (c).

AB1-engrossed,50 Section 50. 238.399 (3) (a) of the statutes is amended to read:

AB1-engrossed,37,19 238.399 (3) (a) The corporation may designate not more than 30 35 enterprise zones.

AB1-engrossed,51 Section 51. 238.399 (3) (e) of the statutes is created to read:

AB1-engrossed,37,25 238.399 (3) (e) If the corporation revokes all certifications for tax benefits within a designated enterprise zone, the corporation may cancel the designation of that enterprise zone. After canceling the designation of an enterprise zone, the corporation may designate a new enterprise zone subject to the limits of this subsection.

AB1-engrossed,52 Section 52. 238.399 (4) of the statutes is renumbered 238.399 (4) (a).

AB1-engrossed,53 Section 53. 238.399 (4) (b) of the statutes is created to read:

AB1-engrossed,38,4 238.399 (4) (b) If an enterprise zone designation expires under par. (a), the corporation may designate a new enterprise zone subject to the limits of sub. (3).

AB1-engrossed,54 Section 54. 238.399 (5) (f) of the statutes is created to read:

AB1-engrossed,38,10 238.399 (5) (f) No more than one financial services technology business that, after completing a competitive corporate relocation process, retains its corporate headquarters in this state and retains at least 93 percent of its full-time employees in this state who were identified as being full-time employees of the business in the base year, as determined by the corporation.

AB1-engrossed,55 Section 55. 238.399 (5m) of the statutes is amended to read:

AB1-engrossed,38,19 238.399 (5m) Additional tax benefits for significant capital expenditures. If the corporation determines that a business certified under sub. (5) makes a significant capital expenditure in the enterprise zone, the corporation may certify the business to receive additional tax benefits in an amount to be determined by the corporation, but not exceeding 10 percent of the business' capital expenditures. The corporation shall, in a manner determined by the corporation, allocate the tax benefits a business is certified to receive under this subsection over the remainder of the time limit of the enterprise zone under sub. (4) (a).

AB1-engrossed,56 Section 56. 281.346 (4) (c) 2m. of the statutes is amended to read:

AB1-engrossed,38,25 281.346 (4) (c) 2m. The proposal is consistent with an approved water supply service area plan under s. 281.348 that covers the public water supply system unless the proposal is to provide water to a straddling community that includes an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1-engrossed,57 Section 57. 281.36 (3b) (b) of the statutes is amended to read:

AB1-engrossed,39,9 281.36 (3b) (b) No person may discharge dredged material or fill material into a wetland unless the discharge is authorized by a wetland general permit or individual permit issued by the department under this section or the discharge is exempt under sub. (4) or (4m) (a). No person may violate any condition contained in a wetland general or individual permit issued by the department under this section. The department may not issue a wetland general or individual permit under this section unless it determines that the discharge authorized pursuant to the wetland general or individual permit will comply with all applicable water quality standards.

AB1-engrossed,58 Section 58. 281.36 (3m) (a) of the statutes is amended to read:

AB1-engrossed,39,20 281.36 (3m) (a) When permit required. Any person wishing to proceed with a discharge into any wetland shall submit an application for a wetland individual permit under this subsection unless the discharge has been authorized under a wetland general permit as provided in sub. (3g) or is exempt under sub. (4) or (4m) (a). Before submitting the application, the department shall hold a meeting with the applicant to discuss the details of the proposed discharge and the requirements for submitting the application and for delineating the wetland. An applicant may include in the application a request for a public informational hearing. The application shall be accompanied by the applicable fee specified in sub. (11) or (12) (a).

AB1-engrossed,59 Section 59. 281.36 (4m) of the statutes is created to read:

AB1-engrossed,40,4 281.36 (4m) Exemption and waiver; electronics and information technology manufacturing zone. (a) The permitting requirement under sub. (3b) does not apply to any discharge into a wetland located in an electronics and information technology manufacturing zone designated under s. 238.396 (1m) if the discharge is related to the construction, access, or operation of a new manufacturing facility in the zone and all adverse impacts to functional values of wetlands are compensated at a ratio of 2 acres per each acre impacted through any of the following methods, consistent with the rules promulgated under this section:

AB1-engrossed,40,5 1. Purchasing credits from a mitigation bank located in this state.

AB1-engrossed,40,10 2. Participating in the in lieu fee subprogram under sub. (3r), under which the department shall identify and consider mitigation that could be conducted within the same watershed and may locate mitigation outside the watershed only upon agreement of the department and the person exempt from permitting under this subsection.

AB1-engrossed,40,11 3. Completing mitigation within this state.

AB1-engrossed,40,12 4. Participating in the escrow subprogram under sub. (3s).

AB1-engrossed,40,14 (b) The department shall waive water quality certification under 33 USC 1341 (a) (1) for a discharge under par. (a).

AB1-engrossed,60 Section 60 . Nonstatutory provision.

AB1-engrossed,40,23 (1) The department of transportation may not expend the proceeds of general obligation bonds issued under section 20.866 (2) (uuz) of the statutes unless the state receives an award of federal moneys for the I 94 north-south corridor project under section 84.0145 (3) (b) 1. of the statutes and the joint committee on finance approves the expenditure. No later than 14 days after receiving a plan from the department of transportation to make an expenditure under this subsection, the cochairpersons of the joint committee on finance shall convene a meeting of the joint committee on finance to approve or modify and approve the plan.

AB1-engrossed,41,7 (2c) Except as otherwise specifically provided, the department of natural resources shall ensure that the conditions of applicable permits, licenses, and approvals under the department'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 designated under section 238.396 (1m) of the statutes, including but not limited to permits, licenses, and approvals required under chapters 23, 24, 26, 27, 28, 29, 30, 31, 33, 44, 77, 160, 167, 254, 280, 281, 283, 285, 287, 289, 291, 292, 293, 295, and 299 of the statutes and any associated rules promulgated by the department of natural resources.

AB1-engrossed,41,16 (2d) The Board of Regents of the University of Wisconsin System and the Technical College System Board shall consult together on strategies to address long-term workforce development issues for the future economy, including strategies for the fields of engineering, computer science, and electronic technology manufacturing. No later than December 1, 2017, the boards shall submit a joint report to the joint committee on finance and the appropriate legislative standing committees generally responsible for legislation related to higher education and workforce development that includes recommendations to address long-term workforce development issues.

AB1-engrossed,41,18 (3m) Section 13.52 (6) of the statutes shall not apply to the actions of the legislature in enacting this act.

AB1-engrossed,61 Section 61. Fiscal changes.

AB1-engrossed,42,2 (1) Economic development liaison. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of administration under section 20.505 (1) (a) of the statutes, the dollar amount for fiscal year 2017-18 is increased by $183,500 and the dollar amount for fiscal year 2018-19 is increased by $177,500 to increase the authorized FTE positions for the department by 1.0 GPR unclassified economic development liaison project position. The project position shall be assigned to executive salary group 4. Notwithstanding section 230.27 (1) of the statutes, the project position shall expire on December 31, 2022.

AB1-engrossed,42,9 (1c) Electronics manufacturing small business development director. In the schedule under section 20.005 (3) of the statutes for the appropriation to the Wisconsin Economic Development Corporation under section 20.192 (1) (r) of the statutes, the dollar amount for fiscal year 2017-18 is increased by $110,000 and the dollar amount for fiscal year 2018-19 is increased by $110,000 to provide funding for the electronics manufacturing small business development director position required under section 238.03 (5) of the statutes.

AB1-engrossed,62 Section 62. Initial applicability.

AB1-engrossed,42,14 (1) Sales and use tax exemption. The treatment of section 77.54 (65) of the statutes first applies to purchases made after the Wisconsin Economic Development Corporation enters into a contract with a business to locate in an electronics and information technology manufacturing zone.

AB1-engrossed,63 Section 63. Effective dates. This act takes effect on the day after publication, except as follows:

AB1-engrossed,42,19 (1) The treatment of section 20.505 (1) (fr) of the statutes and Section 61 (1) and (1c) of this act take effect on the day after publication, or on the 2nd day after publication of the 2017 biennial budget act, whichever is later.

AB1-engrossed,42,20 (End)