Amendment AU7 SSA1-SB1

SENATE SUBSTITUTE AMENDMENT 1, TO SENATE BILL 1

September 7, 2017 - Offered by Joint Committee on Finance.

SB1-SSA1,2,11 An Act to renumber 196.192 (2) and 238.399 (4); to renumber and amend 30.195 (7), 61.57, 62.155, 196.192 (1), 196.192 (3) (a), 196.192 (3) (b) and 196.192 (4); to amend 30.123 (6m) (intro.), 66.1105 (2) (f) 1. (intro.), 66.1105 (2) (f) 1. b., 66.1105 (4) (gm) 4. c., 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4., 71.30 (3) (f), 71.34 (1k) (g), 77.70, 79.05 (2) (c), 84.0145 (2), 180.0622 (2), 183.0304 (1), 196.491 (1) (f), 238.12 (1), 238.399 (5m), 281.346 (4) (c) 2m., 281.36 (3b) (b), 281.36 (3m) (a) and 809.62 (1r) (intro.); and to create 13.94 (1) (u), 16.297, 20.395 (6) (ad), 20.445 (1) (bg), 20.505 (1) (fr), 20.835 (2) (cp), 20.866 (2) (uuz), 30.12 (1g) (m), 30.123 (6) (f), 30.19 (1m) (h), 30.195 (7) (b), 61.57 (1) and (2), 62.155 (1) and (2), 66.0203 (2) (bm), 66.0203 (10), 66.0215 (1m), 66.02162 (1m), 66.0621 (3m), 66.1105 (20), 71.07 (3w) (bm) 5., 71.07 (3wm), 71.28 (3w) (bm) 5., 71.28 (3wm), 73.0306, 77.54 (65), 84.585, 106.271, 196.192 (1) (b), 196.192 (2m), 196.49 (5g) (ar) 3., 238.03 (5), 238.396, 238.399 (3) (e), 238.399 (4) (b), 238.399 (5) (f), 281.36 (4m) and 808.055 of the statutes; relating to: authorizing the creation of an electronics and information technology manufacturing zone and, in connection with that zone, authorizing certain tax benefits, creating special provisions for tax incremental districts, and creating exemptions from wetland and waterway permits and Public Service Commission certificates; making changes to the enterprise zone tax credit program; authorizing limited use of the design-build construction process; authorizing certain counties to issue debt backed by sales and use tax revenue; facilitating a worker training and employment program; making changes to town incorporation procedures; granting contingent highway bonding authority; and making appropriations.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB1-SSA1,1m Section 1m. 13.94 (1) (u) of the statutes is created to read:

SB1-SSA1,2,17 13.94 (1) (u) Beginning in 2018, annually for 5 years, evaluate the process used by the Wisconsin Economic Development Corporation to verify information under s. 238.396 (4) (d) and evaluate whether the corporation appropriately verified, in accordance with statutory and contractual requirements, the amount of tax credits eligible claimants may claim under ss. 71.07 (3wm) and 71.28 (3wm).

SB1-SSA1,2 Section 2 . 16.297 of the statutes is created to read:

SB1-SSA1,2,20 16.297 Grants for local government expenditures; moral obligation pledge. (1) Definitions. In this section:

SB1-SSA1,2,23 (a) “Local governmental unit” means a city, village, town, county, or technical college district that contains any part of an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

SB1-SSA1,3,1 (b) “Municipal obligation” has the meaning given in s. 67.01 (6).

SB1-SSA1,3,7 (1m) Grants. From the appropriation under s. 20.505 (1) (fr), the department may make one or more grants to a local governmental unit for the local governmental unit's expenditures for costs the department determines are associated with development occurring in an electronics and information technology manufacturing zone designated under s. 238.396 (1m), including costs related to infrastructure and public safety.

SB1-SSA1,3,10 (2) Match. The department may require a local governmental unit to match in whole or in part a grant the department makes to the local governmental unit under sub. (1m).

SB1-SSA1,3,14 (3) Moral obligation pledge. (a) Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called upon to do so, it shall make an appropriation to pay the principal and interest of a local governmental unit's municipal obligations, if all of the following apply:

SB1-SSA1,3,17 1. The local governmental unit's municipal obligation is issued to finance costs related to development occurring in or for the benefit of an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

SB1-SSA1,3,21 2. The secretary designates the moral obligation pledge for the local governmental unit's municipal obligation before the municipal obligation is issued, based on a plan that the local governmental unit shall submit to the department on a form prescribed by the department.

SB1-SSA1,3,24 (b) No more than 40 percent of a local governmental unit's aggregate municipal obligations under par. (a) shall be subject to the moral obligation pledge under that paragraph.

SB1-SSA1,4,11 (c) The proceeds of municipal obligations issued by a local governmental unit under this subsection shall be used to finance costs related to development occurring in or for the benefit of an electronics and information technology manufacturing zone designated under s. 238.396 (1m). The legislature determines that the provision of assistance by state agencies to a local governmental unit under this section, any appropriation of funds to a local governmental unit under this section, and the moral obligation pledge under par. (a) serve a substantial statewide public purpose by assisting the development of an electronics and information technology manufacturing zone in the state, by encouraging economic development, by reducing unemployment, and by bringing needed capital into the state for the benefit and welfare of people throughout the state.

SB1-SSA1,4,13 (4) Contract. The secretary may contract with a local governmental unit to implement this section.

SB1-SSA1,3 Section 3 . 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB1-SSA1,4 Section 4 . 20.395 (6) (ad) of the statutes is created to read:

SB1-SSA1,5,8 20.395 (6) (ad) Principal repayment and interest, contingent funding of southeast Wisconsin freeway megaprojects, state funds. From the general fund, a sum sufficient to reimburse s. 20.866 (1) (u) for the payment of principal and interest costs incurred in financing southeast Wisconsin freeway megaprojects, as provided under ss. 20.866 (2) (uuz) and 84.585 and 2017 Wisconsin Act .... (this act), section 60 (1c), and to make payments under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a).

SB1-SSA1,4m Section 4m. 20.445 (1) (bg) of the statutes is created to read:

SB1-SSA1,5,12 20.445 (1) (bg) Worker training and employment program. As a continuing appropriation, the amounts in the schedule for the worker training and employment program under s. 106.271.

SB1-SSA1,5 Section 5 . 20.505 (1) (fr) of the statutes is created to read:

SB1-SSA1,5,16 20.505 (1) (fr) Grants for local government expenditures. As a continuing appropriation, the amounts in the schedule for grants to local governmental units under s. 16.297.

SB1-SSA1,6 Section 6 . 20.835 (2) (cp) of the statutes is created to read:

SB1-SSA1,6,3 20.835 (2) (cp) Electronics and information technology manufacturing zone credit. A sum sufficient to make the payments under ss. 71.07 (3wm) (d) 2. and 71.28 (3wm) (d) 2.

SB1-SSA1,7 Section 7 . 20.866 (2) (uuz) of the statutes is created to read:

SB1-SSA1,6,10 20.866 (2) (uuz) Transportation; southeast Wisconsin freeway megaprojects subject to contingency. From the capital improvement fund, a sum sufficient for the department of transportation to fund southeast Wisconsin freeway megaprojects as provided under s. 84.585. Subject to 2017 Wisconsin Act .... (this act), section 60 (1c), the state may contract public debt in an amount not to exceed $252,400,000 for these purposes.

SB1-SSA1,9 Section 9 . 30.12 (1g) (m) of the statutes is created to read:

SB1-SSA1,6,15 30.12 (1g) (m) A structure or deposit that is related to the construction, access, or operation of a new manufacturing facility in a navigable stream located in an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

SB1-SSA1,10 Section 10 . 30.123 (6) (f) of the statutes is created to read:

SB1-SSA1,6,21 30.123 (6) (f) The construction or maintenance of bridges and the construction or placement and maintenance of culverts that are related to the construction, access, or operation of a new manufacturing facility and that affect a portion of a navigable stream within an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

SB1-SSA1,11 Section 11 . 30.123 (6m) (intro.) of the statutes is amended to read:

SB1-SSA1,7,3 30.123 (6m) Permits in lieu of exemptions. (intro.) The department may decide to require that a person engaged in an activity that is exempt under sub. (6) (d) or (f) apply for an individual permit or seek authorization under a general permit if the department has conducted an investigation and visited the site of the activity and has determined that conditions specific to the site require restrictions on the activity in order to prevent any of the following:

SB1-SSA1,12 Section 12 . 30.19 (1m) (h) of the statutes is created to read:

SB1-SSA1,7,8 30.19 (1m) (h) Any activity that affects a portion of a navigable stream and that is related to the construction, access, or operation of a new manufacturing facility within an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

SB1-SSA1,13 Section 13 . 30.195 (7) of the statutes is renumbered 30.195 (7) (intro.) and amended to read:

SB1-SSA1,7,12 30.195 (7) Application of section. (intro.) This section does not apply to municipal any of the following:

SB1-SSA1,7,14 (a) Municipal or county-owned lands in counties having a population of 750,000 or more.

SB1-SSA1,14 Section 14 . 30.195 (7) (b) of the statutes is created to read:

SB1-SSA1,7,18 30.195 (7) (b) Activity related to the construction, access, or operation of a new manufacturing facility located in an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

SB1-SSA1,15 Section 15 . 61.57 of the statutes is renumbered 61.57 (intro.) and amended to read:

SB1-SSA1,8,2 61.57 Acquisition of recycling or resource recovery facilities without bids. (intro.) A village may contract for the acquisition of any element of a recycling or resource recovery facility the following without submitting the contract for bids as required under s. 61.54 if the village invites developers to submit proposals to provide a completed project and evaluates proposals according to site, cost, design and the developers' experience in other similar projects. :

SB1-SSA1,16 Section 16 . 61.57 (1) and (2) of the statutes are created to read:

SB1-SSA1,8,4 61.57 (1) A recycling or resource recovery facility.

SB1-SSA1,8,6 (2) If the village contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m):

SB1-SSA1,8,7 (a) Water and sewer systems.

SB1-SSA1,8,8 (b) Wastewater treatment facilities.

SB1-SSA1,17 Section 17 . 62.155 of the statutes is renumbered 62.155 (intro.) and amended to read:

SB1-SSA1,8,16 62.155 Acquisition of recycling or resource recovery facilities without bids. (intro.) A city may contract for the acquisition of any element of a recycling or resource recovery facility the following without submitting the contract for bids as required under s. 62.15 if the city invites developers to submit proposals to provide a completed project and evaluates proposals according to site, cost, design and the developers' experience in other similar projects. :

SB1-SSA1,18 Section 18 . 62.155 (1) and (2) of the statutes are created to read:

SB1-SSA1,8,18 62.155 (1) A recycling or resource recovery facility.

SB1-SSA1,8,20 (2) If the city contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m):

SB1-SSA1,8,21 (a) Water and sewer systems.

SB1-SSA1,8,22 (b) Wastewater treatment facilities.

SB1-SSA1,18d Section 18d. 66.0203 (2) (bm) of the statutes is created to read:

SB1-SSA1,9,3 66.0203 (2) (bm) Once a petition is filed under par. (b), no territory within the town may be annexed by any city or village under s. 66.0217 or 66.0219 until 30 days after one of the following occurs:

SB1-SSA1,9,5 1. Subject to subd. 2., the petition is dismissed by the court under sub. (8) or the board under sub. (9).

SB1-SSA1,9,7 2. If the petition is dismissed as described under subd. 1. and the dismissal is appealed as described under s. 66.0209, all appeals are exhausted.

SB1-SSA1,9,8 3. An incorporation referendum is held in the town.

SB1-SSA1,18e Section 18e. 66.0203 (10) of the statutes is created to read:

SB1-SSA1,9,16 66.0203 (10) Certain towns may become a city or village. A town that is adjacent to a city or village that contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m) may become a city or village if the town holds, and approves, an incorporation referendum as described in s. 66.0211 (3). None of the other procedures contained in ss. 66.0201 to 66.0213 need to be fulfilled, and no approval by the board under s. 66.0207 is necessary for the town to become a city or village.

SB1-SSA1,18g Section 18g. 66.0215 (1m) of the statutes is created to read:

SB1-SSA1,9,20 66.0215 (1m) Annexation limitation. Once a petition is filed under sub. (1), no territory within the town may be annexed by any city or village under s. 66.0217 or 66.0219 until 30 days after the referendum is held in the town.

SB1-SSA1,18i Section 18i. 66.02162 (1m) of the statutes is created to read:

SB1-SSA1,9,24 66.02162 (1m) Annexation limitation. Once a resolution is adopted under sub. (1), no territory within the town may be annexed by any city or village under s. 66.0217 or 66.0219 until 30 days after the referendum is held in the town.

SB1-SSA1,18k Section 18k. 66.0621 (3m) of the statutes is created to read:

SB1-SSA1,10,6 66.0621 (3m) A county in which an electronics and information technology manufacturing zone designated under s. 238.396 (1m) exists may issue bonds under this section whose principal and interest are paid only through sales and use tax revenues imposed by the county under s. 77.70. The county shall be and continue without power to repeal such tax or obstruct the collection of the tax until all such payments have been made or provided for.

SB1-SSA1,19 Section 19 . 66.1105 (2) (f) 1. (intro.) of the statutes is amended to read:

SB1-SSA1,10,25 66.1105 (2) (f) 1. (intro.) “Project costs" mean any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city which are listed in a project plan as costs of public works or improvements within a tax incremental district or, to the extent provided in this subd. 1. (intro.) or subds. 1. k., 1. m., and 1. n., or sub. (20) (c), without the district, plus any incidental costs, diminished by any income, special assessments, or other revenues, including user fees or charges, other than tax increments, received or reasonably expected to be received by the city in connection with the implementation of the plan. For any tax incremental district for which a project plan is approved on or after July 31, 1981, only a proportionate share of the costs permitted under this subdivision may be included as project costs to the extent that they benefit the tax incremental district, except that expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by a 1st class city, to fund parking facilities ancillary to and within one mile from public entertainment facilities, including a sports and entertainment arena, shall be considered to benefit any tax incremental district located in whole or in part within a one-mile radius of such parking facilities. To the extent the costs benefit the municipality outside the tax incremental district, a proportionate share of the cost is not a project cost. “Project costs" include:

SB1-SSA1,19d Section 19d. 66.1105 (2) (f) 1. b. of the statutes is amended to read:

SB1-SSA1,11,7 66.1105 (2) (f) 1. b. Financing costs, including, but not limited to, all interest paid to holders of evidences of indebtedness issued to pay for project costs and, any premium paid over the principal amount of the obligations because of the redemption of the obligations prior to maturity, and payments made by the city or village to a county or other municipality that issues obligations to finance project costs of a district pursuant to sub. (20).

SB1-SSA1,20 Section 20 . 66.1105 (4) (gm) 4. c. of the statutes is amended to read:

SB1-SSA1,11,20 66.1105 (4) (gm) 4. c. Except as provided in subs. (10) (c), (16) (d), (17), and (18) (c) 3., and (20) (b), the equalized value of taxable property of the district plus the value increment of all existing districts does not exceed 12 percent of the total equalized value of taxable property within the city. In determining the equalized value of taxable property under this subd. 4. c. or sub. (17) (c), the department of revenue shall base its calculations on the most recent equalized value of taxable property of the district that is reported under s. 70.57 (1m) before the date on which the resolution under this paragraph is adopted. If the department of revenue determines that a local legislative body exceeds the 12 percent limit described in this subd. 4. c. or sub. (17) (c), the department shall notify the city of its noncompliance, in writing, not later than December 31 of the year in which the department receives the completed application or amendment forms described in sub. (5) (b).

SB1-SSA1,21 Section 21 . 66.1105 (20) of the statutes is created to read:

SB1-SSA1,12,2 66.1105 (20) Districts within an electronics and information technology manufacturing zone. (a) Creation. With regard to a tax incremental district that is created in an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m), the district may only be a district that is suitable for industrial sites or mixed-use development, as described in sub. (4) (gm) 4. a., and all of the following apply:

SB1-SSA1,12,9 1. Notwithstanding the dates specified in sub. (4) (gm) 2., if the resolution described under sub. (4) (gm) is adopted during the period between January 1 and December 1, the creation date shall be either the January 1 of the year in which the resolution is adopted or the next subsequent January 1, as specified by the local legislative body in the resolution. If a resolution is adopted during the period between December 2 and December 31, the creation date shall be the next subsequent January 1.

SB1-SSA1,12,12 2. Notwithstanding the October 31 deadline for the city clerk's submission of the forms described in sub. (5) (b), the city clerk shall complete and submit the required forms for a tax incremental district described in this subsection either:

SB1-SSA1,12,16 a. On or before December 31 of the year the resolution under subd. 1. is adopted if the resolution is adopted between January 1 and December 1, and the resolution specifies that the district's creation date is January 1 of the year in which the resolution is adopted.

SB1-SSA1,12,21 b. On or after the next subsequent April 1 and before the next subsequent December 1 of the year the resolution under subd. 1. is adopted if the resolution is adopted between January 1 and December 1 and the resolution specifies that the district's creation date is the next subsequent January 1 or the resolution is adopted between December 2 and December 31.

SB1-SSA1,12,23 (b) Exception to the 12 percent limit. Notwithstanding the 12 percent limit findings requirement described under sub. (4) (gm) 4. c.:

SB1-SSA1,12,25 1. That findings requirement does not apply to a local legislative body's resolution which relates to a district described under this subsection.

SB1-SSA1,13,6 2. After a local legislative body's creation of a district described under this subsection, if that body makes the calculation under sub. (4) (gm) 4. c. for a tax incremental district created under this section but not under this subsection, that findings requirement may not include the value increment of the district created under this subsection, provided that the district created under this subsection has not terminated.

SB1-SSA1,13,9 (c) Expenditures. With regard to a tax incremental district described under this subsection, and subject to par. (ce), the creating city may incur project costs for any of the following, provided that the expenditures benefit the district:

SB1-SSA1,13,10 1. Territory that is located in the same county as the district.