Amendment SA6-SSA1-SB197

LRBa0699/1

RJM:cmh/kmg:rs

2003 - 2004 LEGISLATURE

SENATE AMENDMENT 6, TO SENATE SUBSTITUTE AMENDMENT 1, TO 2003 SENATE BILL 197

June 24, 2003 - Offered by Senator Hansen.

SB197-SSA1-SA6,1,1 At the locations indicated, amend the substitute amendment as follows:

SB197-SSA1-SA6,1,9 1. Page 1, line 7: before "single" insert "requiring state agencies, political subdivisions, and housing, redevelopment, and community development authorities, as well as subsidy recipients, to report on subsidies provided to businesses; requiring certain disclosures by business subsidy applicants; prohibiting business subsidies under certain circumstances; requiring the Legislative Audit Bureau to publish a report on business subsidies and to evaluate their effectiveness; defining a full-time job for purposes of development zone tax credits; altering eligibility requirements for development zone and technology zone tax credits;".

SB197-SSA1-SA6,1,10 2. Page 1, line 9: delete "and granting" and substitute "; granting".

SB197-SSA1-SA6,1,11 3. Page 1, line 9: after "authority" insert "; and providing a penalty".

SB197-SSA1-SA6,1,12 4. Page 1, line 10: before that line insert:

SB197-SSA1-SA6,2,1 " Section 1c. 13.94 (12) of the statutes is created to read:

SB197-SSA1-SA6,2,3 13.94 (12) Business subsidies report; compilation and summary. (a) In this subsection:

SB197-SSA1-SA6,2,4 1. "Business" has the meaning given in s. 20.926 (2).

SB197-SSA1-SA6,2,5 2. "Business subsidy" has the meaning given in s. 20.926 (3).

SB197-SSA1-SA6,2,6 3. "Grantor" has the meaning given in s. 20.926 (4).

SB197-SSA1-SA6,2,17 (b) Annually, by August 1, the legislative audit bureau shall publish a report that summarizes the business subsidies provided in the preceding year. The report shall include any information and analysis that the legislative audit bureau determines is relevant and will assist the legislature in evaluating the cost, effectiveness, and equity of investing public moneys in businesses and economic development. The report may include any information and data that is available to the legislative audit bureau and shall include the reports filed under s. 20.9265 (4) (b) and (c) and a compilation and summary of the reports filed under s. 20.9265 (4) (a). In each year after the year in which the legislative audit bureau receives the report under s. 66.1105 (13), the legislative audit bureau shall include a summary of that report in the report under this subsection.

SB197-SSA1-SA6,2,20 (c) The portion of the report under this subsection that is the compilation and summary of the reports under s. 20.9265 (4) (a) shall include at least all of the following information:

SB197-SSA1-SA6,2,21 1. The total amount of business subsidies awarded in each county of the state.

SB197-SSA1-SA6,2,22 2. Distribution of business subsidies, categorized by subsidy amounts.

SB197-SSA1-SA6,2,24 3. Distribution of business subsidy amounts, categorized by the length of time over which the subsidy is provided.

SB197-SSA1-SA6,3,2 4. Distribution of business subsidies, categorized by type of subsidy, amount of subsidy, and public purpose.

SB197-SSA1-SA6,3,4 5. The percentage and number of recipients that reached their goals by the times specified in their subsidy agreements under s. 20.9265 (2) (a) 6.

SB197-SSA1-SA6,3,6 6. The percentage and number of recipients that reached their interim goals, if any.

SB197-SSA1-SA6,3,8 7. The percentage and number of recipients that did not reach their goals by the times specified in their subsidy agreements under s. 20.9265 (2) (a) 6.

SB197-SSA1-SA6,3,11 8. The total dollar amount of business subsidies provided to recipients that did not reach their goals by the times specified in their subsidy agreements under s. 20.9265 (2) (a) 6.

SB197-SSA1-SA6,3,13 9. The number of jobs created as a result of business subsidies, shown in separate wage bands, as defined in s. 20.926 (10).

SB197-SSA1-SA6,3,15 10. Fringe benefits paid or otherwise provided as a result of business subsidies, shown in separate wage bands, as defined in s. 20.926 (10).

SB197-SSA1-SA6,3,21 (d) The compilation and summary of the reports under s. 20.9265 (4) (a) shall be presented in a manner that allows for comparisons across time periods and among grantors and, in addition, shall include sufficient information to enable comparisons between wages paid and fringe benefits provided by new jobs created as a result of business subsidies and wages paid and fringe benefits provided by comparable jobs in each area in which the new jobs are created.

SB197-SSA1-SA6,4,3 (e) In addition to summarizing and compiling the reports specified in par. (b), the legislative audit bureau shall include in the report under this subsection a comparison and evaluation of the effectiveness of each business subsidy, or program under which business subsidies are provided, in achieving a public purpose and recommendations for improving the programs. The legislative audit bureau is not required to compare and evaluate under this paragraph the programs included in the reports filed under s. 20.9265 (4) (b) and (c).

SB197-SSA1-SA6,4,7 (f) The legislative audit bureau may develop a report form for the manual or electronic submission of the report required under s. 20.9265 (4) (a) to ensure that the appropriate data is collected to enable the legislative audit bureau to satisfy the requirements under this subsection.

SB197-SSA1-SA6,4,8 (g) The report under this subsection is open to public inspection.

SB197-SSA1-SA6, s. 1e Section 1e. 20.001 (intro.) of the statutes is amended to read:

SB197-SSA1-SA6,4,11 20.001 Definitions and abbreviations. (intro.) In Except as otherwise provided, in this chapter terms and abbreviations have the following meanings:

SB197-SSA1-SA6, s. 1g Section 1g. 20.926 of the statutes is created to read:

SB197-SSA1-SA6,4,14 20.926 Definitions for business subsidy awards and reports. In this section and s. 20.9265:

SB197-SSA1-SA6,4,15 (1) "Agency" means a state agency or a local government agency.

SB197-SSA1-SA6,4,16 (2) "Business" means any of the following:

SB197-SSA1-SA6,4,17 (a) A person engaged in a business enterprise for profit in this state.

SB197-SSA1-SA6,4,20 (b) An organization or enterprise operating not for profit in this state that has at least 100 full-time positions with a ratio of highest-paid to lowest-paid employee that exceeds 10 to one, determined on the basis of full-time equivalent positions.

SB197-SSA1-SA6,4,22 (3) (a) Except as provided in par. (b), "business subsidy" means any of the following:

SB197-SSA1-SA6,4,25 1. Public improvements that cost at least $25,000, that are made to buildings or lands owned by the state or a political subdivision, and that exclusively benefit a single business at the time that the improvements are made.

SB197-SSA1-SA6,5,2 2. Any of the following that has a cost to an agency or the state of at least $25,000 and that is given to a business by an agency:

SB197-SSA1-SA6,5,3 a. A grant.

SB197-SSA1-SA6,5,4 b. A contribution of personal or real property or infrastructure.

SB197-SSA1-SA6,5,7 2m. Any transfer of property to a business by an agency for at least $25,000 below the property's acquisition cost or fair market value at the time of the transfer, whichever is greater.

SB197-SSA1-SA6,5,8 3. A loan of at least $75,000 that is given to a business by an agency.

SB197-SSA1-SA6,5,9 (b) "Business subsidy" does not include any of the following:

SB197-SSA1-SA6,5,11 1. Assistance for the sole purpose of providing job readiness and training services.

SB197-SSA1-SA6,5,12 2. Housing assistance.

SB197-SSA1-SA6,5,13 3. Energy conservation assistance.

SB197-SSA1-SA6,5,16 4. A reduction or deferral of any tax or fee, including tax credits under ch. 71, general tax reductions, and tax reductions resulting from conformity with federal law.

SB197-SSA1-SA6,5,18 5. General changes in the tax incremental financing laws and other general tax law changes.

SB197-SSA1-SA6,5,19 6. Worker's compensation and unemployment compensation.

SB197-SSA1-SA6,5,20 7. Payment to a person from an agency for the purchase of goods or services.

SB197-SSA1-SA6,5,21 7m. Payments made under ch. 32.

SB197-SSA1-SA6,5,24 8. Funds from bonds issued for the benefit of any institution, facility, or organization described in section 501 (c) (3) of the Internal Revenue Code that is exempt from federal taxation under section 501 (a) of the Internal Revenue Code.

SB197-SSA1-SA6,5,25 9. Assistance for a consortium, as defined in s. 560.60 (3).

SB197-SSA1-SA6,6,1 10. Any assistance provided by the University of Wisconsin System.

SB197-SSA1-SA6,6,3 11. Assistance provided by the department of transportation, except for assistance provided under s. 84.185 or any similar programs.

SB197-SSA1-SA6,6,5 12. Federal loan funds provided through the U.S. economic development administration.

SB197-SSA1-SA6,6,7 13. Assistance provided by an agency under a statutory provision that identifies the specific recipient or the specific amount.

SB197-SSA1-SA6,6,8 14. Loans and investments made by the investment board.

SB197-SSA1-SA6,6,11 (3m) "Development zone" means a development zone under ss. 560.71 to 560.78, a development opportunity zone under s. 560.795, or an enterprise development zone under s. 560.797.

SB197-SSA1-SA6,6,12 (4) "Grantor" means an agency that awards or provides a business subsidy.

SB197-SSA1-SA6,6,16 (5) "Local government agency" means any political subdivision, housing authority created under ss. 66.1201 to 66.1211, redevelopment authority created under s. 66.1333, or community development authority created under s. 66.1335, or any entity created or authorized by any of them.