AB40-ASA1,1329,2523 c. The percentage of households in the area receiving unemployment insurance
24under ch. 108, relief funded by a relief block grant under ch. 49, or aid to families with
25dependent children under s. 49.19 is higher than the state average.
AB40-ASA1,1330,4
1d. In the 36 months immediately preceding the date on which the application
2under s. 560.72 238.32 (2) or (3) was submitted to the department corporation, a
3number of workers in the area were permanently laid off by their employer or became
4unemployed as a result of a business action subject to s. 109.07 (1m).
AB40-ASA1,1330,6 5(1m) (intro.) In making a determination under sub. (1) (e), the department
6corporation shall consider all of the following:
AB40-ASA1,1330,87 (a) The extent of poverty, unemployment, or other factors contributing to
8general economic hardship in the area.
AB40-ASA1,1330,99 (h) Any other factors that the department corporation considers relevant.
AB40-ASA1,1330,13 10(2) In determining whether an area meets the requirements under sub. (1) (e)
11or s. 560.735 238.335, the department corporation may rely on any data provided by
12the local governing body which that the department corporation determines is
13relevant.
AB40-ASA1,1330,14 14(3) (intro.) The department corporation shall do all of the following:
AB40-ASA1, s. 3420 15Section 3420. 560.715 of the statutes is renumbered 238.315 and amended to
16read:
AB40-ASA1,1330,20 17238.315 Invitation to nominate area. If the department corporation
18determines that an area has experienced or is about to experience economic distress,
19the department corporation may invite local governing bodies in the area to
20nominate the area as a development zone.
AB40-ASA1, s. 3421 21Section 3421. 560.72 of the statutes is renumbered 238.32, and 238.32 (1)
22(intro.), (2) (intro.), (c), (d), (f) and (i), (3) and (5), as renumbered, are amended to read:
AB40-ASA1,1331,223 238.32 (1) (intro.) A local governing body may nominate an area as a
24development zone, if the department corporation has invited the governing body to

1nominate the area under s. 560.715 238.315 and if the governing body does all of the
2following:
AB40-ASA1,1331,5 3(2) (intro.) A local governing body may nominate the area as a development
4zone by submitting an application to the department corporation in a form prescribed
5by the department corporation. The application shall include all of the following:
AB40-ASA1,1331,76 (c) Evidence that the area meets at least 3 of the criteria under s. 560.71 238.31
7(1) (e) 4.
AB40-ASA1,1331,98 (d) Evidence that the area meets the applicable requirements of s. 560.735
9238.335.
AB40-ASA1,1331,1110 (f) A description of past and present economic development activities in the
11area under local, state, or federal programs.
AB40-ASA1,1331,1212 (i) Any other information required by the department corporation.
AB40-ASA1,1331,15 13(3) Two or more local governing bodies may submit a joint application
14nominating an area as a development zone, subject to s. 560.735 238.335 (2), if each
15local governing body complies with subs. (1) and (2).
AB40-ASA1,1331,18 16(5) The department corporation may permit a local governing body to revise an
17application that the department corporation determines is inadequate or
18incomplete.
AB40-ASA1, s. 3422 19Section 3422. 560.725 of the statutes is renumbered 238.325 and amended to
20read:
AB40-ASA1,1331,22 21238.325 Evaluation by department corporation. (1) The department
22corporation shall evaluate applications received under s. 560.72 238.32 (2) and (3).
AB40-ASA1,1332,3 23(2) Subject to s. 560.735 238.335 (5), the department corporation may reduce
24the size of an area nominated as a development zone, if the department corporation
25determines the boundaries as proposed by the local governing body in an application

1under s. 560.72 238.32 (2) or (3) are inconsistent with the purpose of the development
2zone program. Any nominated area which is reduced under this subsection need not
3comply with s. 560.735 238.335 (1) and (4).
AB40-ASA1,1332,8 4(3) After evaluating an application submitted under s. 560.72 238.32 (2) or (3),
5the department corporation may approve the application, subject to any reduction
6in the size of the nominated area under sub. (2). If the department corporation
7approves the application, the department corporation shall designate the area as a
8development zone, subject to s. 560.71 238.31, and notify the local governing body.
AB40-ASA1, s. 3423 9Section 3423. 560.735 of the statutes is renumbered 238.335, and 238.335 (1)
10(a) and (c), (2), (5) (a) and (b), (6) (a) 1. and 2. and (c), (6r) and (7), as renumbered, are
11amended to read:
AB40-ASA1,1332,1312 238.335 (1) (a) The area contains less than 10% of the valuation of the property
13of the city, village, or town, as determined under s. 70.57, in which the area is located.
AB40-ASA1,1332,1614 (c) If the area is located within a village, town, or city other than a 1st class city,
15the population of the area is not less than 1,000 nor more than 10,000, as estimated
16under s. 16.96.
AB40-ASA1,1332,19 17(2) If an area is located within the boundaries of 2 or more cities, villages, or
18towns, the property value of the cities, villages, or towns under sub. (1) (a) shall be
19combined for the purposes of sub. (1).
AB40-ASA1,1332,22 20(5) (a) The area has a continuous border following natural or man-made
21boundaries such as streets, highways, rivers, municipal limits, or limits of a
22reservation.
AB40-ASA1,1332,2323 (b) The area consists of contiguous blocks, census blocks, or similar units.
AB40-ASA1,1333,3
1(6) (a) 1. Each of the areas has a continuous border following natural or
2man-made boundaries and consists of contiguous blocks, census blocks , or similar
3units.
AB40-ASA1,1333,44 2. Each area meets at least 3 of the criteria listed in s. 560.71 238.31 (1) (e) 4.
AB40-ASA1,1333,75 (c) If an application is submitted by the governing body of a county under s.
6560.72 238.32 (2) or (3), up to 4 separate areas may be nominated or designated as
7one development zone, if par. (a) 1. to 3. applies.
AB40-ASA1,1333,12 8(6r) Subject to the population limit under sub. (6m), if an area that is
9nominated or designated as a development zone is comprised of one or more entire
10counties and a city, village, or town is partially located in the area and partially
11located outside of the area, the entire city, village, or town shall be part of the
12nominated or designated area.
AB40-ASA1,1333,15 13(7) The department corporation may waive the requirements of this section in
14a particular case, if the department corporation determines that application of the
15requirement is impractical with respect to a particular development zone.
AB40-ASA1, s. 3424 16Section 3424. 560.737 of the statutes is repealed.
AB40-ASA1, s. 3425 17Section 3425. 560.74 of the statutes is renumbered 238.34, and 238.34 (1), (2),
18(3) (intro.) and (a), (4), (5) and (6), as renumbered, are amended to read:
AB40-ASA1,1333,2419 238.34 (1) Except as provided under sub. (6), at any time after a development
20zone is designated by the department corporation, a local governing body may submit
21an application to change the boundaries of the development zone. If the boundary
22change reduces the size of a development zone, the local governing body shall explain
23why the area excluded should no longer be in a development zone. The department
24corporation may require the local governing body to submit additional information.
AB40-ASA1,1334,4
1(2) The department corporation may approve an application for a boundary
2change if the development zone, as affected by the boundary changes, meets the
3applicable requirements of s. 560.735 238.335 and 3 of the criteria under s. 560.71
4238.31 (1) (e) 4.
AB40-ASA1,1334,6 5(3) (intro.) If the department corporation approves an application for a
6boundary change under sub. (2), it shall do all of the following:
AB40-ASA1,1334,87 (a) Redetermine the limit on the tax benefits for the development zone
8established under s. 560.745 238.345 (2) (a).
AB40-ASA1,1334,11 9(4) The change in the boundaries or tax benefits limit of a development zone
10shall be effective on the day the department corporation notifies the local governing
11body under sub. (3) (b).
AB40-ASA1,1334,16 12(5) No change in the boundaries of a development zone may affect the duration
13of an area as a development zone under s. 560.745 238.345 (1) (a). The department
14corporation may consider a change in the boundary of a development zone when
15evaluating an application for an extension of the designation of an area as a
16development zone under s. 560.745 238.345 (1) (b).
AB40-ASA1,1334,19 17(6) The department corporation may not accept any applications under sub. (1)
18to change the boundaries of a development zone designated under s. 560.71 238.31
19on or after March 6, 2009.
AB40-ASA1, s. 3426 20Section 3426. 560.745 of the statutes is renumbered 238.345, and 238.345 (1)
21(a) and (b), (2) (a), (am), (b), (c) 1. and 2. and (d) and (3), as renumbered, are amended
22to read:
AB40-ASA1,1334,2523 238.345 (1) (a) The designation of an area as a development zone shall be
24effective for 240 months, beginning on the day the department notifies the local
25governing body under s. 560.725 238.325 (3) of the designation.
AB40-ASA1,1335,6
1(b) The local governing body may apply to the department corporation for one
260-month extension of the designation. The department corporation shall
3promulgate adopt rules establishing criteria for approving an extension of a
4designation of an area as a development zone under this subsection. No applications
5may be accepted by the department corporation under this paragraph on or after
6March 6, 2009.
AB40-ASA1,1335,9 7(2) (a) When the department corporation designates a development zone under
8s. 560.71 238.31, it shall establish a limit for tax benefits for the development zone
9determined by allocating to the development zone a portion of $38,155,000.
AB40-ASA1,1335,1310 (am) Notwithstanding par. (a), the department corporation may increase the
11established limit for tax benefits for a development zone. The department
12corporation may not increase the limit for tax benefits established for any
13development zone designated under s. 560.71 238.31 on or after March 6, 2009.
AB40-ASA1,1335,1514 (b) Annually the department corporation shall estimate the amount of forgone
15state revenue because of tax benefits claimed by persons in each development zone.
AB40-ASA1,1335,1816 (c) 1. Ninety days after the day on which the department corporation
17determines that the forgone tax revenues under par. (b) will equal or exceed the limit
18for the development zone established under par. (a) or (am).
AB40-ASA1,1335,2019 2. The day that the department corporation withdraws its designation of an
20area as a development zone under sub. (3).
AB40-ASA1,1335,2221 (d) The department corporation shall immediately notify the local governing
22body of a change in the expiration date of the development zone under par. (c).
AB40-ASA1,1335,24 23(3) The department corporation may withdraw the designation of an area as
24a development zone if any of the following apply applies:
AB40-ASA1,1336,4
1(a) No person is certified as eligible to receive tax benefits under s. 560.765
2238.365 (3) during the 12-month period beginning on the day the area is designated
3as a development zone and the department corporation determines that the local
4governing body that nominated the zone is not in compliance with s. 560.763 238.363.
AB40-ASA1,1336,75 (b) No person is certified as eligible to receive tax benefits under s. 560.765
6238.365 (3) during the 24-month period beginning on the day the area is designated
7a development zone.
AB40-ASA1, s. 3427 8Section 3427. 560.75 of the statutes is renumbered 238.35, and 238.35 (intro.),
9(6), (7), (8) and (10), as renumbered, are amended to read:
AB40-ASA1,1336,11 10238.35 Additional duties of the department corporation. (intro.) The
11department corporation shall do all of the following:
AB40-ASA1,1336,17 12(6) Notify University of Wisconsin small business development centers, the
13Wisconsin housing and development centers, the central administration of all
14University of Wisconsin campuses and regional planning commissions about the
15development zone program and encourage those entities to provide advice to the
16department corporation or local governing bodies on ways to improve the
17development zone program.
AB40-ASA1,1336,18 18(7) Prepare forms for the certification described under s. 560.765 238.365 (5).
AB40-ASA1,1336,20 19(8) Annually verify information submitted to the department corporation
20under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.
AB40-ASA1,1336,24 21(10) Enter into an agreement with the local governing body of a 1st class city
22where a development zone is designated under s. 560.71 238.31 (3) (c) 1. to provide
23efficient administration of the development zone program within the development
24zone.
AB40-ASA1, s. 3428
1Section 3428. 560.763 of the statutes is renumbered 238.363, and 238.363 (1)
2(intro.) and (c) and (4), as renumbered, are amended to read:
AB40-ASA1,1337,53 238.363 (1) (intro.) If an area nominated by a local governing body is designated
4as a development zone under s. 560.71 238.31, the local governing body shall do all
5of the following:
AB40-ASA1,1337,76 (c) Assist the department corporation in the administration of the
7development zone program.
AB40-ASA1,1337,11 8(4) The local governing body of a 1st class city where a development zone is
9designated under s. 560.71 238.31 (3) (c) 1. shall enter into an agreement with the
10department corporation to provide efficient administration of the development zone
11program within the development zone.
AB40-ASA1, s. 3429 12Section 3429. 560.765 of the statutes is renumbered 238.365, and 238.365
13(intro.), (2), (3) (intro.), (b), (c), (e) and (j) and (5) (e), (g) and (h), as renumbered, are
14amended to read:
AB40-ASA1,1337,16 15238.365 Certification for tax benefits. (intro.) The department corporation
16shall do all of the following:
AB40-ASA1,1337,18 17(2) Determine whether a person applying for tax benefits engages or will
18engage in economic activity which that violates s. 560.78 238.38 (1).
AB40-ASA1,1337,21 19(3) (intro.) Subject to s. 560.78 238.38, certify persons who are eligible to claim
20tax benefits while an area is designated as a development zone, according to the
21following criteria:
AB40-ASA1,1337,2322 (b) The person's commitment not to engage in economic activity that violates
23s. 560.78 238.38 (1).
AB40-ASA1,1338,3
1(c) The number of full-time jobs that will be created, retained, or substantially
2upgraded as a result of the person's economic activity in relation to the amount of tax
3benefits estimated for the person under sub. (4).
AB40-ASA1,1338,64 (e) The amount the person proposes to invest in a business, or spend on the
5construction, rehabilitation, repair, or remodeling of a building, located within the
6development zone.
AB40-ASA1,1338,87 (j) Any other criteria established under rules promulgated adopted by the
8department corporation.
AB40-ASA1,1338,10 9(5) (e) The estimated number of full-time jobs that will be created, retained,
10or significantly upgraded in the development zone because of the person's business.
AB40-ASA1,1338,1211 (g) The limit under s. 560.768 238.368 on tax benefits the person may claim
12while an area is designated as a development zone.
AB40-ASA1,1338,1413 (h) Other information required by the department corporation or the
14department of revenue.
AB40-ASA1, s. 3430 15Section 3430. 560.768 of the statutes is renumbered 238.368, and 238.368 (1)
16(a) and (b), (2) (intro.) and (b) and (3) (a) (intro.) and 1. and (b), as renumbered, are
17amended to read:
AB40-ASA1,1338,2018 238.368 (1) (a) The department corporation shall establish a limit on the
19maximum amount of tax benefits a person certified under s. 560.765 238.365 (3) may
20claim while an area is designated as a development zone.
AB40-ASA1,1338,2221 (b) When establishing a limit on tax benefits under par. (a), the department
22corporation shall do all of the following:
AB40-ASA1,1338,2323 1. Consider all of the criteria described in s. 560.765 238.365 (3) (a) to (e).
AB40-ASA1,1339,424 2. Establish a limit which does not greatly exceed a recommended limit,
25established under rules promulgated adopted by the department corporation based

1on the cost, number and types of full-time jobs that will be created, retained, or
2upgraded, including full-time jobs available to members of the targeted population,
3as a result of the economic activity of the person certified under s. 560.765 238.365
4(3).
AB40-ASA1,1339,7 5(2) (intro.) The department corporation may, upon request, increase a limit on
6tax benefits established under sub. (1) if the department corporation does all of the
7following:
AB40-ASA1,1339,108 (b) Revises the certification required under s. 560.765 238.365 (5) and provides
9a copy of the revised form to the department of revenue and the person whose limit
10is increased under this subsection.
AB40-ASA1,1339,13 11(3) (a) (intro.) The department corporation may reduce a limit established
12under sub. (1) or (2) if the department corporation determines that any of the
13following applies:
AB40-ASA1,1339,1514 1. The limit is not consistent with the criteria listed under s. 560.765 238.365
15(3) (a) to (e).
AB40-ASA1,1339,1816 (b) The department corporation shall notify the department of revenue and the
17person whose limit on tax benefits is reduced under par. (a) and provide a written
18explanation to the person of the reasons for reducing the limit.
AB40-ASA1, s. 3431 19Section 3431. 560.77 of the statutes is renumbered 238.37, and 238.37 (1)
20(intro.) and (b) and (2), as renumbered, are amended to read:
AB40-ASA1,1339,2221 238.37 (1) (intro.) The department corporation shall revoke the certification of
22a person certified under s. 560.765 238.365 (3) if the person does any of the following:
AB40-ASA1,1339,2323 (b) Becomes subject to revocation under s. 560.78 238.38 (1).
AB40-ASA1,1339,25 24(2) The department corporation shall notify the department of revenue within
2530 days of revoking a certification under sub. (1).
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