LRBs0209/2
CTS/JK/MDK/TKK:all:rs
2009 - 2010 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO 2009 SENATE BILL 409
December 17, 2009 - Offered by Committee on Economic Development.
SB409-SSA1,2,8 1An Act to repeal 20.285 (1) (eg) and 36.25 (54); to renumber and amend
2560.205 (3) (d); to amend 20.143 (1) (c), 20.143 (1) (d), 20.143 (1) (fi), 20.143 (1)
3(ie), 20.143 (1) (ig), 20.143 (1) (im), 20.143 (1) (io), 20.143 (1) (ir), 20.143 (1) (kj),
438.41 (3) (d), 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45 (2)
5(a) 10., 77.92 (4), 560.2055 (4) (c), 560.27 (3) (c) and 560.703 (1) (a); and to create
620.285 (1) (cd), 20.285 (1) (eb), 20.285 (1) (eg), 20.437 (2) (fr), 36.25 (52), 36.25
7(53), 36.25 (54), 49.265 (3) (b) 11., 49.265 (4) (cm), 71.07 (5d) (c) 4., 71.07 (5r),
871.10 (4) (cd), 71.28 (5r), 71.30 (3) (cd), 71.47 (5r), 71.49 (1) (cd), 560.203,
9560.205 (3) (d) 1., 560.205 (3) (d) 2., 560.27 (1) (c) and 560.276 of the statutes;
10relating to: a postsecondary education tax credit for businesses; grants to
11certain community action agencies for skills enhancement programs;
12increasing annual limits on angel investment tax credits; awarding grants to
13the WiSys Technology Foundation, Inc.; business plan competitions and an

1emerging technology center in the University of Wisconsin System; rural
2outsourcing grants; requiring the Department of Commerce to award grants to
3a high-technology business development corporation and grants for converting
4manufacturing facilities; increasing funding for certain economic development
5programs; a pilot program providing microloans for the creation of new
6businesses; increasing funding for certain technical college training program
7grants; providing an exemption from emergency rule procedures; granting
8rule-making authority; and making appropriations.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB409-SSA1, s. 1 9Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
10the following amounts for the purposes indicated: - See PDF for table PDF
SB409-SSA1, s. 2 11Section 2. 20.143 (1) (c) of the statutes, as affected by 2009 Wisconsin Act 28,
12is amended to read:
SB409-SSA1,3,10
120.143 (1) (c) Wisconsin development fund; grants, loans, reimbursements, and
2assistance.
Biennially, the amounts in the schedule for grants under s. 560.145; for
3grants and loans under s. ss. 560.275 (2) and 560.276 and under subch. V of ch. 560;
4for reimbursements under s. 560.167; for the costs specified in s. 560.607; for loans
5under s. 560.203 and
the loan under 1999 Wisconsin Act 9, section 9110 (4); and for
6the grants under 1995 Wisconsin Act 27, section 9116 (7gg), 1995 Wisconsin Act 119,
7section 2 (1), 1997 Wisconsin Act 27, section 9110 (6g), 2003 Wisconsin Act 33, section
89109 (1d) and (2q), 2007 Wisconsin Act 20, section 9108 (4u), (6c), (7c), (7f), (8c), (8i),
9(9i), and (10q), 2009 Wisconsin Act 2, section 9110 (2) and (3), and 2009 Wisconsin
10Act 28
, section 9110 (17q).
SB409-SSA1, s. 3 11Section 3. 20.143 (1) (d) of the statutes is amended to read:
SB409-SSA1,3,1412 20.143 (1) (d) High-technology business development corporation. The
13amounts in the schedule for the grants specified in s. 560.27 (1) (b) and (c) and (3),
14and for the grant under 2009 Wisconsin Act .... (this act), section 45 (2 )
.
SB409-SSA1, s. 4 15Section 4. 20.143 (1) (fi) of the statutes, as created by 2009 Wisconsin Act 28,
16is amended to read:
SB409-SSA1,3,1917 20.143 (1) (fi) Forward innovation fund; grants and loans. Biennially, the
18amounts in the schedule for grants and loans under s. 560.276 and under subch. II
19of ch. 560.
SB409-SSA1, s. 5 20Section 5. 20.143 (1) (ie) of the statutes, as affected by 2009 Wisconsin Act 28,
21is amended to read:
SB409-SSA1,4,1022 20.143 (1) (ie) Wisconsin development fund, repayments. All moneys received
23in repayment of grants or loans under s. 560.085 (4) (b), 1985 stats., s. 560.10, 2005
24stats., s. 560.147, 2005 stats., s. 560.16, 1995 stats., s. 560.165, 1993 stats., s. 560.275
25(2), s. 560.62, 2005 stats., s. 560.63, 2005 stats., s. 560.66, 2005 stats., ss. 560.145,

1560.157, and 560.45, subch. V of ch. 560, 1989 Wisconsin Act 336, section 3015 (1m),
21989 Wisconsin Act 336, section 3015 (2m), 1989 Wisconsin Act 336, section 3015
3(3gx), 1997 Wisconsin Act 27, section 9110 (7f), 1997 Wisconsin Act 310, section 2
4(2d), 1999 Wisconsin Act 9, section 9110 (4), and 2007 Wisconsin Act 20, section 9108
5(5x), not appropriated under par. (gv) to be used for grants and loans under s. ss.
6560.275 (2), s. 560.276, and 560.45 , and subch. V of ch. 560, for the loan under 1999
7Wisconsin Act 9
, section 9110 (4), for the grant under 2001 Wisconsin Act 16, section
89110 (7g), for the grants under 2003 Wisconsin Act 33, section 9109 (1d) and (2q), for
9grants under 2009 Wisconsin Act .... (this act), section 45 (1 ),
for the study under 2009
10Wisconsin Act 28
, section 9110 (15u), and for reimbursements under s. 560.167.
SB409-SSA1, s. 6 11Section 6. 20.143 (1) (ig) of the statutes, as affected by 2009 Wisconsin Act 28,
12is amended to read:
SB409-SSA1,4,1813 20.143 (1) (ig) Gaming economic development and diversification; repayments.
14Biennially, the amounts in the schedule for grants and loans under s. 560.138, for
15grants under s. 2009 Wisconsin Act .... (this act), section 45 (1), and under ss. 560.276
16and
560.45, and for the study under 2009 Wisconsin Act 28, section 9110 (15u). All
17moneys received in repayment of loans under ss. 560.137 (2), 2005 stats., and 560.138
18shall be credited to this appropriation account.
SB409-SSA1, s. 7 19Section 7. 20.143 (1) (im) of the statutes, as affected by 2009 Wisconsin Act
2028
, is amended to read:
SB409-SSA1,5,221 20.143 (1) (im) Minority business projects; repayments. All moneys received on
22or before June 30, 2009, in repayment of grants or loans under s. 560.82 (1m) (b), 2007
23stats., and s. 560.82 (1m) (c), 2007 stats., and loans under 1997 Wisconsin Act 9,
24section 3, to be used for grants and loans under s. 560.45 and subch. II of ch. 560, for

1grants under 2009 Wisconsin Act .... (this act), section 45 (1 ),
and for the study under
22009 Wisconsin Act 28, section 9110 (15u).
SB409-SSA1, s. 8 3Section 8. 20.143 (1) (io) of the statutes, as created by 2009 Wisconsin Act 28,
4is amended to read:
SB409-SSA1,5,95 20.143 (1) (io) Grant and loan repayments; forward innovation fund. All
6moneys received in repayment of grants or loans under subch. II of ch. 560, grants
7or loans under s. 560.82 (1m) (b) and (c), 2007 stats., and loans under 1997 Wisconsin
8Act 9
, section 3, to be used for grants and loans under s. 560.276 and under subch.
9II of ch. 560.
SB409-SSA1, s. 9 10Section 9. 20.143 (1) (ir) of the statutes, as affected by 2009 Wisconsin Act 28,
11is amended to read:
SB409-SSA1,5,1512 20.143 (1) (ir) Rural economic development loan repayments. All moneys
13received in repayment of loans under s. 560.17, to be used for grants and loans under
14ss. 560.17 and 560.45, for grants under 2009 Wisconsin Act .... (this act), section 45
15(1),
and for the study under 2009 Wisconsin Act 28, section 9110 (15u).
SB409-SSA1, s. 10 16Section 10. 20.143 (1) (kj) of the statutes, as affected by 2009 Wisconsin Act
1728
, is amended to read:
SB409-SSA1,6,218 20.143 (1) (kj) Gaming economic development and diversification; grants and
19loans.
Biennially, the amounts in the schedule for grants and loans under s. ss.
20560.138 and 560.276, for the grants under s. 560.139 (1) (a), and for the grants under
212001 Wisconsin Act 16, section 9110 (2k), (11pk), and (11zx), and 2009 Wisconsin Act
2228
, section 9110 (16i). All moneys transferred from the appropriation account under
23s. 20.505 (8) (hm) 6j. shall be credited to this appropriation account.
24Notwithstanding s. 20.001 (3) (b), the unencumbered balance on June 30 of each

1odd-numbered year shall revert to the appropriation account under s. 20.505 (8)
2(hm).
SB409-SSA1, s. 11 3Section 11. 20.285 (1) (cd) of the statutes is created to read:
SB409-SSA1,6,64 20.285 (1) (cd) WiSys Technology Foundation grants. A sum sufficient not to
5exceed $2,000,000 for grants to the WiSys Technology Foundation, Inc., under s.
636.25 (52) (b).
SB409-SSA1, s. 12 7Section 12. 20.285 (1) (eb) of the statutes is created to read:
SB409-SSA1,6,98 20.285 (1) (eb) Business plan competition. The amounts in the schedule to
9support a business plan competition program under s. 36.25 (53).
SB409-SSA1, s. 13 10Section 13. 20.285 (1) (eg) of the statutes is created to read:
SB409-SSA1,6,1311 20.285 (1) (eg) Emerging technology center. Biennially, the amounts in the
12schedule to develop a business plan for an emerging technology center under s. 36.25
13(54).
SB409-SSA1, s. 14 14Section 14. 20.285 (1) (eg) of the statutes, as created by 2009 Wisconsin Act
15.... (this act), is repealed.
SB409-SSA1, s. 15 16Section 15. 20.437 (2) (fr) of the statutes is created to read:
SB409-SSA1,6,1817 20.437 (2) (fr) Skills enhancement grants. The amounts in the schedule to
18provide skills enhancement grants under s. 49.265 (4) (cm).
SB409-SSA1, s. 16 19Section 16. 36.25 (52) of the statutes is created to read:
SB409-SSA1,6,2120 36.25 (52) WiSys Technology Foundation grants. (a) In this subsection,
21"foundation" means the WiSys Technology Foundation, Inc.
SB409-SSA1,7,922 (b) From the appropriation under s. 20.285 (1) (cd), the board shall award
23grants to the foundation for the Wisconsin Small Company Advancement program
24to provide intellectual property management services to the extension and all
25institutions and college campuses other than the University of Wisconsin-Madison

1and the University of Wisconsin-Milwaukee and for the administrative costs of the
2program. The amount of each grant shall be $250,000. The foundation may use no
3more than $75,000 of the amount appropriated under s. 20.285 (1) (cd) for the
4administrative costs of the program. The board may not award a grant unless the
5foundation shows to the satisfaction of the board that the foundation has secured,
6after January 1, 2010, matching funds for the program from sources other than the
7state that are equal to the amount of the grant, except that the amounts used for
8administrative costs of the program are exempt from the matching requirement.
9In-kind contributions may be applied to meet the matching requirement.
SB409-SSA1,7,1310 (c) The board shall submit progress reports on the use of grants under par. (b)
11to the joint committee on finance and the chief clerk of each house of the legislature
12for distribution to the appropriate standing committees under s. 13.172 (3), at least
13annually until the program funded by the grants under par. (b) is terminated.
SB409-SSA1, s. 17 14Section 17. 36.25 (53) of the statutes is created to read:
SB409-SSA1,7,2215 36.25 (53) Business plan competition. The board shall use the moneys
16appropriated under s. 20.285 (1) (eb) to support a business plan competition program
17existing on the effective date of this subsection .... [LRB inserts date], at institutions
18and college campuses other than the University of Wisconsin-Madison that makes
19entrepreneurial expertise available to students and that has ties to campus-based
20business plan contests and national organizations that foster student
21entrepreneurism. The board may use the moneys only if the board receives matching
22funds for the same purpose from private contributions.
SB409-SSA1, s. 18 23Section 18. 36.25 (54) of the statutes is created to read:
SB409-SSA1,8,324 36.25 (54) Emerging technology center. The board shall use the moneys
25appropriated under s. 20.285 (1) (eg) to develop an emerging technology center at the

1University of Wisconsin-La Crosse. The board may use the moneys only if the board
2receives matching funds for the same purpose from sources other than the state.
3In-kind contributions may be applied to meet the matching requirement.
SB409-SSA1, s. 19 4Section 19. 36.25 (54) of the statutes, as created by 2009 Wisconsin Act .... (this
5act), is repealed.
SB409-SSA1, s. 20 6Section 20. 38.41 (3) (d) of the statutes, as created by 2009 Wisconsin Act 2,
7is amended to read:
SB409-SSA1,8,118 38.41 (3) (d) Beginning in the 2008-09 school year, the board shall award at
9least $1,000,000 annually under sub. (1) for training in advanced manufacturing
10skills, with priority given to welding and beginning in the 2010-11 school year, the
11board shall award at least $2,000,000 annually under sub. (1) for such training
.
SB409-SSA1, s. 21 12Section 21. 49.265 (3) (b) 11. of the statutes is created to read:
SB409-SSA1,8,1713 49.265 (3) (b) 11. Provide, to individuals who work at least 20 hours per week
14and whose earned income is at or below 150 percent of the poverty line, a program
15of skills enhancement that shall include access to transportation, child care, career
16counseling, job placement assistance, and financial support for education and
17training.
SB409-SSA1, s. 22 18Section 22. 49.265 (4) (cm) of the statutes is created to read:
SB409-SSA1,8,2119 49.265 (4) (cm) From the appropriation under s. 20.437 (2) (fr), the department
20of children and families shall distribute grants to community action agencies to
21provide the skills enhancement services specified under sub. (3) (b) 11.
SB409-SSA1, s. 23 22Section 23. 71.05 (6) (a) 15. of the statutes, as affected by 2009 Wisconsin Act
2328
, is amended to read:
SB409-SSA1,9,424 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
25(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s),

1(3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5r), and (8r) and not passed through by a
2partnership, limited liability company, or tax-option corporation that has added that
3amount to the partnership's, company's, or tax-option corporation's income under s.
471.21 (4) or 71.34 (1k) (g).
SB409-SSA1, s. 24 5Section 24. 71.07 (5d) (c) 4. of the statutes is created to read:
SB409-SSA1,9,106 71.07 (5d) (c) 4. A claimant may claim the credit under this subsection for an
7investment that was made in a business that was located outside of this state if the
8investment was made no more than 60 days before the business relocated to this
9state and the business was certified as a qualified new business venture no later than
10180 days after relocating to this state.
SB409-SSA1, s. 25 11Section 25. 71.07 (5r) of the statutes is created to read:
SB409-SSA1,9,1312 71.07 (5r) Postsecondary education credit. (a) Definitions. In this
13subsection:
SB409-SSA1,9,1614 1. "Claimant" means a sole proprietor, a partner, a member of a limited liability
15company, or a shareholder of a tax-option corporation who files a claim under this
16subsection.
SB409-SSA1,9,1717 2. "Course of instruction" has the meaning given in s. 38.50 (1) (c).
SB409-SSA1,9,1818 3. "Family member" has the meaning given in s. 157.061 (7).
SB409-SSA1,9,2119 4. "Managing employee" means an individual who wholly or partially exercises
20operational or managerial control over, or who directly or indirectly conducts, the
21operation of the claimant's business.
SB409-SSA1,9,2322 5. "Paid or incurred" includes any amount paid by the claimant to reimburse
23an individual for the tuition that the individual paid or incurred.
SB409-SSA1,9,2424 6. "Qualified postsecondary institution" means all of the following:
SB409-SSA1,9,25
1a. A University of Wisconsin System institution, a technical college system
2institution, or a regionally accredited 4-year nonprofit college or university having
3its regional headquarters and principal place of business in this state.
SB409-SSA1,10,54 b. A school approved under s. 38.50, if the delivery of education occurs in this
5state.
SB409-SSA1,10,86 (b) Filing claims. Subject to the limitations provided in this subsection, a
7claimant may claim as a credit against the tax imposed under s. 71.02 an amount
8equal to the following:
SB409-SSA1,10,129 1. Twenty-five percent of the tuition that the claimant paid or incurred for an
10individual to participate in an education program of a qualified postsecondary
11institution, if the individual was enrolled in a course of instruction and eligible for
12a grant from the Federal Pell Grant Program.
SB409-SSA1,10,1813 2. Thirty percent of the tuition that the claimant paid or incurred for an
14individual to participate in an education program of a qualified postsecondary
15institution, if the individual was enrolled in a course of instruction that relates to a
16projected worker shortage in this state, as determined by the local workforce
17development boards established under 29 USC 2832, and if the individual was
18eligible for a grant from the Federal Pell Grant Program.
SB409-SSA1,10,2119 (c) Limitations. 1. No credit may be allowed under par. (b) unless the claimant
20certifies to the department of revenue that the claimant will not be reimbursed for
21any amount of tuition for which the claimant claims a credit under par. (b).
SB409-SSA1,10,2422 2. A claimant may not claim the credit under par. (b) for any tuition amounts
23that the individual described under par. (b) excluded under s. 71.05 (6) (b) 28. or
24under section 127 of the Internal Revenue Code.
SB409-SSA1,11,3
13. A claimant may not claim the credit under par. (b) for any tuition amounts
2that the claimant paid or incurred for a family member of the claimant or for a family
3member of a managing employee unless all of the following apply:
SB409-SSA1,11,74 a. The family member was employed an average of at least 20 hours per week
5as an employee of the claimant, or the claimant's business, during the one-year
6period prior to commencing participation in the education program in connection
7with which the claimant claims a credit under par. (b).
SB409-SSA1,11,98 b. The family member is enrolled in a course of instruction that is substantially
9related to the claimant's business.
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