2011 Wisconsin Act 32

(d) In ss. 560.701 to 560.706 238.301 to 238.306, "tax benefits" means the economic development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637.

32,3409 Section 3409. 560.70 (1) of the statutes is repealed.

32,3410 Section 3410. 560.701 of the statutes is renumbered 238.301, and 238.301 (1) (intro.) and (e), (2) (a) and (b) and (3) (intro.), (b), (c), (d) and (f), as renumbered, are amended to read:

238.301 (1) Application. (intro.) Any person may apply to the department corporation on a form prepared by the department corporation for certification under this section. The application shall include all of the following:

(e) Other information required by the department corporation or the department of revenue.

(2) (a) The department corporation may certify a person who submits an application under sub. (1) if, after conducting an investigation, the department corporation determines that the person is conducting or intends to conduct at least one eligible activity.

(b) The department corporation shall provide a person certified under this section and the department of revenue with a copy of the certification.

(3) Contract. (intro.) A person certified under this section shall enter into a written contract with the department corporation. The contract shall include provisions that detail all of the following:

(b) Whether any of the eligible activities will occur in an economically distressed area, as designated by the department corporation under s. 560.704 238.304 (1).

(c) Whether any of the eligible activities will benefit members of a targeted group, as determined by the department corporation under s. 560.704 238.304 (2).

(d) A compliance schedule that includes a sequence of anticipated actions to be taken or goals to be achieved by the person before the person may receive tax benefits under s. 560.703 238.303.

(f) If feasible, a determination of the tax benefits the person will be authorized to claim under s. 560.703 238.303 (2) if the person fulfills the terms of the contract.

32,3411 Section 3411. 560.702 of the statutes is renumbered 238.302, and 238.302 (intro.), (1), (2) and (3), as renumbered, are amended to read:

238.302 Eligible activities. (intro.) A person who conducts or proposes to conduct any of the following may be certified under s. 560.701 238.301 (2):

(1) Job creation project. A project that creates and maintains for a period of time established by the department corporation by rule full-time jobs in addition to any existing full-time jobs provided by the person.

(2) Capital investment project. A project that involves a significant investment of capital, as defined by the department corporation by rule under s. 560.706 238.306 (2) (b), by the person in new equipment, machinery, real property, or depreciable personal property.

(3) Employee training project. A project that involves significant investments in the training or reeducation of employees, as defined by the department corporation by rule under s. 560.706 238.306 (2) (c), by the person for the purpose of improving the productivity or competitiveness of the business of the person.

32,3412 Section 3412. 560.703 (title) of the statutes is renumbered 238.303 (title).

32,3413 Section 3413. 560.703 (1) (a) of the statutes, as affected by 2011 Wisconsin Act 4, is renumbered 238.303 (1) (a) and amended to read:

238.303 (1) (a) Except as provided in pars. (am) and (b), and subject to a reallocation by the department corporation pursuant to rules promulgated adopted under s. 560.205 238.15 (3) (d), the total tax benefits available to be allocated by the department corporation under ss. 560.701 to 560.706 238.301 to 238.306 may not exceed the sum of the tax benefits remaining to be allocated under ss. s. 560.71 to 560.785, 2009 stats., s. 560.797, 2009 stats., s. 560.798, 2009 stats., s. 560.7995, 2009 stats., and s. 560.96, 2009 stats., on March 6, 2009, plus $25,000,000.

32,3414 Section 3414. 560.703 (1) (am) of the statutes, as created by 2011 Wisconsin Act 4, is renumbered 238.303 (1) (am) and amended to read:

238.303 (1) (am) Before the department corporation allocates the additional $25,000,000 in tax benefits specified in par. (a), the department corporation shall submit its plan for such allocation to the joint committee on finance. If the cochairpersons of the committee do not notify the department corporation within 14 working days after the date of the department's corporation's submittal that the committee has scheduled a meeting for the purpose of reviewing the plan, the plan may be implemented and the additional amount may be allocated as proposed by the department corporation. If, within 14 working days after the date of the department's corporation's submittal, the cochairpersons of the committee notify the department corporation that the committee has scheduled a meeting for the purpose of reviewing the proposed plan, the plan may be implemented and the additional amount allocated only upon approval of the committee.

32,3415 Section 3415. 560.703 (1) (b), (2) and (3) of the statutes are renumbered 238.303 (1) (b), (2) and (3) and amended to read:

238.303 (1) (b) The department corporation may submit to the joint committee on finance a request in writing to exceed the total tax benefits specified in par. (a). The department corporation shall submit with its request a justification for seeking an increase under this paragraph. The joint committee on finance, following its review, may approve or disapprove an increase in the total tax benefits available to be allocated under ss. 560.701 to 560.706 238.301 to 238.306.

(2) Authority to claim tax benefits. The department corporation may authorize a person certified under s. 560.701 238.301 (2) to claim tax benefits only after the person has submitted a report to the department corporation that documents to the satisfaction of the department corporation that the person has complied with the terms of the contract under s. 560.701 238.301 (3) and the requirements of any applicable rules promulgated adopted under s. 560.706 238.306 (2).

(3) Notice of eligibility. The department corporation shall provide to the person and to the department of revenue a notice of eligibility to receive tax benefits that reports the amount of tax benefits for which the person is eligible.

32,3416 Section 3416. 560.704 of the statutes is renumbered 238.304, and 238.304 (intro.) and (1), as renumbered, are amended to read:

238.304 Eligible activities in economically distressed areas and benefiting members of targeted groups. (intro.) The department corporation may authorize a person certified under s. 560.701 238.301 (2) to claim additional tax benefits under s. 560.703 238.303 if, after conducting an investigation, the department corporation determines any of the following:

(1) The person conducts at least one eligible activity in an area designated by the department corporation as economically distressed. In designating an area as economically distressed under this subsection, the department corporation shall follow the methodology established by rule under s. 560.706 238.306 (2) (e).

32,3417 Section 3417. 560.705 of the statutes is renumbered 238.305, and 238.305 (intro.), (1) and (2), as renumbered, are amended to read:

238.305 Revocation of certification. (intro.) The department corporation shall revoke the certification of a person who does any of the following:

(1) Supplies false or misleading information to obtain certification under s. 560.701 238.301 (2).

(2) Supplies false or misleading information to obtain tax benefits under s. 560.703 238.303.

32,3418 Section 3418. 560.706 of the statutes is renumbered 238.306, and 238.306 (intro.), (1) (a) and (b), (2) (a), (b), (c), (d), (e) (intro.), (f), (g), (h), (i) and (k) and (3), as renumbered, are amended to read:

238.306 Responsibilities of the department corporation. (intro.) The department corporation shall do all of the following:

(1) (a) Annually verify information submitted to the department of revenue under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637 by persons certified under s. 560.701 238.301 (2) and eligible to receive tax benefits under s. 560.703 238.303.

(b) Notify and obtain written approval from the secretary chief executive officer of the corporation for any certification under sub. (2) (j).

(2) (a) A schedule of hourly wage ranges to be paid, and health insurance benefits to be provided, to an employee by a person certified under s. 560.701 238.301 (2) and the corresponding per employee tax benefit for which a person certified under s. 560.701 238.301 (2) may be eligible.

(b) A definition of "significant investment of capital" for purposes of s. 560.702 238.302 (2), together with a corresponding schedule of tax benefits for which a person who is certified under s. 560.701 238.301 (2) and who conducts a project described in s. 560.702 238.302 (2) may be eligible. The department corporation shall include in the definition required under this paragraph a schedule of investments that takes into consideration the size or nature of the business.

(c) A definition of "significant investments in the training or reeducation of employees" for purposes of s. 560.702 238.302 (3), together with a corresponding schedule of tax benefits for which a person who is certified under s. 560.701 238.301 (2) and who conducts a project under s. 560.702 238.302 (3) may be eligible.

(d) A schedule of tax benefits for which a person who is certified under s. 560.701 238.301 (2) and who conducts a project that will result in the location or retention of a person's corporate headquarters in Wisconsin may be eligible.

(e) (intro.) The methodology for designating an area as economically distressed under s. 560.704 238.304 (1). The methodology under this paragraph shall require the department corporation to consider the most current data available for the area and for the state on the following indicators:

(f) A schedule of additional tax benefits for which a person who is certified under s. 560.701 238.301 (2) and who conducts an eligible activity described under s. 560.704 238.304 may be eligible.

(g) Reporting requirements, minimum benchmarks, and outcomes expected of a person certified under s. 560.701 238.301 (2) before that person may receive tax benefits under s. 560.703 238.303.

(h) Policies, criteria, and methodology for allocating a portion of the tax benefits available under s. 560.703 238.303 to rural areas.

(i) Policies, criteria, and methodology for allocating a portion of the tax benefits available under s. 560.703 238.303 to small businesses.

(k) Procedures for implementing ss. 560.701 to 560.706 238.301 to 238.306.

(3) Reporting. Annually, 6 months after the report has been submitted under s. 560.01 (2) (am) 238.07 (2), submit to the joint legislative audit committee and to the appropriate standing committees of the legislature under s. 13.172 (3) a comprehensive report assessing the program under ss. 560.701 to 560.706 238.301 to 238.306. The report under this subsection shall update the applicable information provided in the report under s. 560.01 (2) (am) 238.07 (2).

32,3419 Section 3419. 560.71 of the statutes is renumbered 238.31, and 238.31 (1) (intro.), (ac), (am), (b), (d) and (e) (intro.), 3. and 4. a., c. and d., (1m) (intro.), (a) and (h), (2) and (3) (intro.), as renumbered, are amended to read:

238.31 (1) (intro.) The department corporation may designate an area as a development zone if all of the following apply:

(ac) The department corporation has invited a local governing body to nominate the area under s. 560.715 238.315.

(am) A local governing body nominates the area as described in s. 560.72 238.32.

(b) The department corporation has evaluated the local governing body's application as described in s. 560.725 238.325.

(d) The area meets the applicable requirements under s. 560.735 or 560.737 238.335.

(e) (intro.) The department corporation determines all of the following:

3. That economic development in the area is not likely to occur or continue without the department's corporation's designation of the area as a development zone.

4. a. The unemployment rate in the area is higher than the state average for the 18 months immediately preceding the date on which the application under s. 560.72 238.32 (2) or (3) was submitted to the department corporation.

c. The percentage of households in the area receiving unemployment insurance under ch. 108, relief funded by a relief block grant under ch. 49, or aid to families with dependent children under s. 49.19 is higher than the state average.

d. In the 36 months immediately preceding the date on which the application under s. 560.72 238.32 (2) or (3) was submitted to the department corporation, a number of workers in the area were permanently laid off by their employer or became unemployed as a result of a business action subject to s. 109.07 (1m).

(1m) (intro.) In making a determination under sub. (1) (e), the department corporation shall consider all of the following:

(a) The extent of poverty, unemployment, or other factors contributing to general economic hardship in the area.

(h) Any other factors that the department corporation considers relevant.

(2) In determining whether an area meets the requirements under sub. (1) (e) or s. 560.735 238.335, the department corporation may rely on any data provided by the local governing body which that the department corporation determines is relevant.

(3) (intro.) The department corporation shall do all of the following:

32,3420 Section 3420. 560.715 of the statutes is renumbered 238.315 and amended to read:

238.315 Invitation to nominate area. If the department corporation determines that an area has experienced or is about to experience economic distress, the department corporation may invite local governing bodies in the area to nominate the area as a development zone.

32,3421 Section 3421. 560.72 of the statutes is renumbered 238.32, and 238.32 (1) (intro.), (2) (intro.), (c), (d), (f) and (i), (3) and (5), as renumbered, are amended to read:

238.32 (1) (intro.) A local governing body may nominate an area as a development zone, if the department corporation has invited the governing body to nominate the area under s. 560.715 238.315 and if the governing body does all of the following:

(2) (intro.) A local governing body may nominate the area as a development zone by submitting an application to the department corporation in a form prescribed by the department corporation. The application shall include all of the following:

(c) Evidence that the area meets at least 3 of the criteria under s. 560.71 238.31 (1) (e) 4.

(d) Evidence that the area meets the applicable requirements of s. 560.735 238.335.

(f) A description of past and present economic development activities in the area under local, state, or federal programs.

(i) Any other information required by the department corporation.

(3) Two or more local governing bodies may submit a joint application nominating an area as a development zone, subject to s. 560.735 238.335 (2), if each local governing body complies with subs. (1) and (2).

(5) The department corporation may permit a local governing body to revise an application that the department corporation determines is inadequate or incomplete.

32,3422 Section 3422. 560.725 of the statutes is renumbered 238.325 and amended to read:

238.325 Evaluation by department corporation. (1) The department corporation shall evaluate applications received under s. 560.72 238.32 (2) and (3).

(2) Subject to s. 560.735 238.335 (5), the department corporation may reduce the size of an area nominated as a development zone, if the department corporation determines the boundaries as proposed by the local governing body in an application under s. 560.72 238.32 (2) or (3) are inconsistent with the purpose of the development zone program. Any nominated area which is reduced under this subsection need not comply with s. 560.735 238.335 (1) and (4).

(3) After evaluating an application submitted under s. 560.72 238.32 (2) or (3), the department corporation may approve the application, subject to any reduction in the size of the nominated area under sub. (2). If the department corporation approves the application, the department corporation shall designate the area as a development zone, subject to s. 560.71 238.31, and notify the local governing body.

32,3423 Section 3423. 560.735 of the statutes is renumbered 238.335, and 238.335 (1) (a) and (c), (2), (5) (a) and (b), (6) (a) 1. and 2. and (c), (6r) and (7), as renumbered, are amended to read:

238.335 (1) (a) The area contains less than 10% of the valuation of the property of the city, village, or town, as determined under s. 70.57, in which the area is located.

(c) If the area is located within a village, town, or city other than a 1st class city, the population of the area is not less than 1,000 nor more than 10,000, as estimated under s. 16.96.

(2) If an area is located within the boundaries of 2 or more cities, villages, or towns, the property value of the cities, villages, or towns under sub. (1) (a) shall be combined for the purposes of sub. (1).

(5) (a) The area has a continuous border following natural or man-made boundaries such as streets, highways, rivers, municipal limits, or limits of a reservation.

(b) The area consists of contiguous blocks, census blocks, or similar units.

(6) (a) 1. Each of the areas has a continuous border following natural or man-made boundaries and consists of contiguous blocks, census blocks, or similar units.

2. Each area meets at least 3 of the criteria listed in s. 560.71 238.31 (1) (e) 4.

(c) If an application is submitted by the governing body of a county under s. 560.72 238.32 (2) or (3), up to 4 separate areas may be nominated or designated as one development zone, if par. (a) 1. to 3. applies.

(6r) Subject to the population limit under sub. (6m), if an area that is nominated or designated as a development zone is comprised of one or more entire counties and a city, village, or town is partially located in the area and partially located outside of the area, the entire city, village, or town shall be part of the nominated or designated area.