SB357: Bill Text

SB357,8,15 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.

SB357,8,16 9. Assistance for a consortium, as defined in s. 560.60 (3).

SB357,8,17 10. Any assistance provided by the University of Wisconsin System.

SB357,8,19 11. Assistance provided by the department of transportation, except for assistance provided under s. 84.185 or any similar programs.

SB357,8,21 12. Federal loan funds provided through the U.S. economic development administration.

SB357,8,23 13. Assistance provided by an agency under a statutory provision that identifies the specific recipient or the specific amount.

SB357,8,24 14. Loans and investments made by the investment board.

SB357,9,3 (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.

SB357,9,4 (4) "Grantor" means an agency that awards or provides a business subsidy.

SB357,9,8 (5) "Local government agency" means a 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 an entity created or authorized by any of them.

SB357,9,9 (6) "Political subdivision" means a city, village, town, or county.

SB357,9,11 (7) "Recipient" means a business that benefits from a business subsidy under sub. (3) (a) 1. or that receives a business subsidy under sub. (3) (a) 2., 2m., or 3.

SB357,9,16 (8) "State agency" means an office, department, agency, institution of higher education, association, society, or other body in state government that is created or authorized to be created by the constitution or a law, including an authority created under ch. 231, 233, 234, or 237. "State agency" does not include the legislature or the courts.

SB357,9,17 (9) "Technology zone" means a technology zone under s. 560.96.

SB357,9,23 (10) "Wage band" means a range of wages, with the lowest range beginning with the federal minimum wage and ending with the wage reflected by rounding the federal minimum wage up to the nearest whole dollar and subtracting one cent, and with each subsequent range beginning with the nearest whole dollar that is greater than the highest wage included within the previous range and ending with the wage reflected by adding 99 cents to that whole dollar.

SB357, s. 4 Section 4. 20.9265 of the statutes is created to read:

SB357,10,10 20.9265 Business subsidies; awarding and reporting requirements. (1) Developing criteria; application requirements; public hearings; prohibitions. (a) Every grantor shall develop criteria for awarding business subsidies. The criteria shall set minimum requirements that a business must meet to be eligible for a business subsidy. The criteria shall provide that, if the public purpose for the subsidy is job creation, all jobs created as a result of the subsidy must provide compensation that is equal to at least 200 percent of the federal poverty line, as defined under 42 USC 9902 (2), for a family of 2 persons. Compensation may include health insurance premiums paid by the employer on behalf of the employee, for purposes of determining whether this requirement is met.

SB357,10,12 (b) A grantor may not award a business subsidy until the grantor has developed the criteria required under par. (a).

SB357,10,20 (c) A copy of the criteria developed under par. (a) shall be submitted along with the first annual report filed by the grantor under sub. (4). A copy of any changes to the original set of criteria developed under par. (a) shall be submitted along with the first annual report that is filed by the grantor after the changes are made. If in awarding a business subsidy a grantor deviates from the criteria developed under par. (a), the grantor shall document the reason for the deviation in writing and submit a copy of that documentation along with the first annual report that is filed by the grantor after the deviation occurs.

SB357,11,2 (cm) 1. A business that applies for a business subsidy shall reveal in the application whether, in the preceding 5 years, the business has been determined by an administrative proceeding, civil action, criminal action, or other legal proceeding to have violated any federal or state environmental or labor law. For purposes of this paragraph, issuance of an order or acceptance of an agreement requiring corrective action or a stipulated fine, forfeiture, or other penalty constitutes a determination of a violation, regardless of whether there is a finding or admission of liability.

SB357,11,5 2. For a violation described in subd. 1. that resulted in a finding, the business shall describe the finding and the penalty assessed and shall specify the entity that made the finding and the location of the public records relating to the matter.

SB357,11,11 3. For a violation described in subd. 1. that resulted in an agreement for corrective action or a stipulated fine, forfeiture, or other penalty, the business shall provide a summary description of the violation that led to the agreement or stipulation and, if the agreement or stipulation is a public record, a summary description of the agreement or stipulation and the location of the agreement or stipulation as a public record.

SB357,11,20 (d) 1. Except as provided in subds. 2. and 3., before awarding a business subsidy of $500,000 or more, a grantor shall hold at least one public meeting in the political subdivision in which the business proposes to conduct the project for which the subsidy will be used. The public meeting must be held not less than 30 days before a final decision is made on whether to award the subsidy. The purpose of the meeting shall be to provide information and receive public comment about the subsidy. The grantor shall give notice of the meeting in a manner that is likely to give notice in the political subdivision in which the business proposes to conduct the project for which the subsidy will be used.

SB357,11,23 2. Subdivision 1. does not apply if, under another process that is separate and distinct from the process under this section, at least one public hearing has been held with respect to the project for which the subsidy will be used.

SB357,11,25 3. Subdivision 1. does not apply if the secretary of administration grants a waiver of the requirement because there is insufficient time to hold a public meeting.

SB357,12,2 (e) A grantor may not award a business subsidy in the form of a grant, a loan, or a contribution of personal or real property if any of the following applies:

SB357,12,7 1. The business subsidy will be used to subsidize any portion of the cost of moving the business's operations from one political subdivision in this state to another political subdivision in this state. This subdivision does not apply if the governing body of the political subdivision from which the applicant intends to move consents to the move in writing, which may be by resolution.

SB357,12,11 2. The business subsidy will be used to subsidize any portion of the cost of moving the business's operations to this state from a state with which this state has entered into an agreement or compact related to businesses moving from one state to another, except as allowed under the terms of the agreement or compact.

SB357,12,15 (f) 1. Except as provided in subd. 2., a recipient may not apply for another business subsidy, and a grantor may not award another business subsidy to a recipient, if the recipient fails to submit a report required under sub. (3) (a) within 6 months of the time a report is required under sub. (3) (b).

SB357,12,18 2. A recipient that submits a report more than 6 months after the time required under sub. (3) (b) may apply for, and may be awarded, another business subsidy only upon the approval of the secretary of administration.

SB357,12,21 (2) Subsidy agreement. (a) Whenever a grantor awards a business subsidy, the recipient shall enter into a subsidy agreement with the grantor. The subsidy agreement shall include all of the following:

SB357,12,23 1. A description of the subsidy, including the amount, or fair market value, and type of subsidy.

SB357,12,25 2. A description of a public purpose for the subsidy, other than expanding the property tax base.

SB357,13,1 3. A statement of why the subsidy is needed.

SB357,13,2 4. Specific measurable goals for the subsidy.

SB357,13,5 4m. If the public purpose for the subsidy is the creation or retention of jobs, specific measurable goals for the number of jobs to be created or retained and wage goals for the jobs to be created or retained.

SB357,13,8 5. If the public purpose for the subsidy is the retention of jobs, the total number of jobs currently provided by the recipient and identification of the jobs that would be lost without the subsidy.

SB357,13,10 6. The time by which the goals specified in subd. 4. and, if applicable, in subd. 4m. are to be achieved.

SB357,13,12 7. A commitment to continue operations at the location where the subsidy is to be used for at least 5 years from the date of receiving the full amount of the subsidy.

SB357,13,16 8. A description of any financial or other obligation of the recipient if the goals under subd. 4. or, if applicable, under subd. 4m. are not met by the time specified under subd. 6. or if the recipient ceases operations at the location before the time specified in subd. 7.

SB357,13,17 9. The name and address of the recipient's parent corporation, if any.

SB357,13,19 10. A list, by amount and provider, of all other public financial assistance for the project for which the subsidy will be used.

SB357,13,24 11. A commitment to ensure that, unless otherwise authorized by the grantor, any depreciable tangible personal property purchased with money obtained through the subsidy will remain in Wisconsin for at least 5 years or, if the property is mobile, the property's base of operations for at least 50 percent of its use will be at a location in Wisconsin for at least 5 years.

SB357,14,4 (b) A subsidy agreement under par. (a) shall be in writing and signed by both the recipient and the grantor. If the grantor is a local government agency that is not a political subdivision, the governing body of the political subdivision within which the local government agency operates must approve the agreement.

SB357,14,7 (3) Reports of recipients. (a) A recipient shall submit to the grantor that awarded the recipient a business subsidy, by the time required under par. (b), a report in a format specified by the grantor that provides the following information:

SB357,14,8 1. The type, public purpose, and amount of the subsidy.

SB357,14,10 2. The hourly wage of each job created or retained as a result of the subsidy, shown in separate wage bands.

SB357,14,12 3. The sum of the hourly wages and cost of health insurance premiums paid by the recipient, shown in separate wage bands.

SB357,14,14 4. A statement of the goals identified in the subsidy agreement under sub. (2) (a) 4. and a statement of the progress toward meeting those goals.

SB357,14,18 4m. If the public purpose for the subsidy is the creation or retention of jobs, a statement of the goals identified in the subsidy agreement under sub. (2) (a) 4m. and a statement of the progress toward meeting the job and wage goals or the date on which the job and wage goals were or are expected to be achieved.

SB357,14,21 5. If the public purpose for the subsidy is the retention of jobs, the total number of jobs currently provided by the recipient, shown in separate wage bands, and the status of the jobs identified under sub. (2) (a) 5.

SB357,15,2 5m. If the public purpose for the subsidy is the creation of jobs, the total number of jobs currently provided by the recipient that satisfy the requirements under sub. (1) (a) compared to the average number of jobs provided by the recipient in the 12 months preceding the period covered by this report that satisfied those requirements.

SB357,15,5 6. A statement of any financial or other obligation of the recipient under sub. (2) (a) 8. and a statement of the progress toward meeting the obligation or the date on which the obligation was or will be met.

SB357,15,6 7. The location of the recipient before receiving the business subsidy.

SB357,15,7 8. The name and address of the recipient's parent corporation, if any.

SB357,15,9 9. A list, by amount and provider, of all other public financial assistance for the project.

SB357,15,10 10. Any other information requested by the grantor.

SB357,15,15 (b) A recipient shall submit the report required under par. (a) in the manner required by the grantor, but not more than 24 months after the subsidy is first provided. Annually thereafter, until the time specified in the subsidy agreement under sub. (2) (a) 6., the recipient shall submit a report, as required under par. (a), for the period since the previous report was submitted.

SB357,15,21 (c) If a recipient fails to submit a report by the time the report is due, the grantor shall within 30 days after the due date notify the recipient that the report is overdue. If the report remains delinquent for 6 months after the due date, the grantor shall notify the department of administration and commence any action or proceedings to recover the subsidy as specified in the subsidy agreement, and the recipient shall be ineligible for any other business subsidies, as provided in sub. (1) (f).

SB357,16,2 (d) For each recipient, a grantor shall keep a centrally located and easily accessible file containing the recipient's application, all documents related to the application, the subsidy agreement entered into under sub. (2), and all reports submitted under this subsection. A grantor may satisfy this paragraph by posting the contents of the file on the grantor's public Web site.

SB357,16,10 (4) Reports of grantors and the department of commerce. (a) Annually, no later than April 1, every grantor shall manually or electronically file with the legislative audit bureau a report that summarizes the information submitted to the grantor during the previous calendar year in the reports under sub. (3). If the grantor electronically files the report, it shall do so in a form and format acceptable to the legislative audit bureau. If the legislative audit bureau develops a report form under s. 13.94 (12) (f), a grantor shall use that form for submitting the information required under this subsection.

SB357,16,15 (b) Notwithstanding s. 20.926 (3) (b) 13., an agency that provides assistance to a business under a statutory provision that identifies the specific recipient or the specific amount shall annually, no later than April 1, file with the legislative audit bureau a report on that assistance provided in the preceding calendar year. The report shall include all of the following information:

SB357,16,16 1. The identity of each recipient of the assistance.

SB357,16,17 2. The amount of assistance provided to each recipient.

SB357,16,18 3. The statutory authority under which the assistance was provided.

SB357,16,23 (c) In addition to filing any report that is required under par. (a) or (b), the department of commerce shall annually, no later than June 1, file with the legislative audit bureau a report on the development zone programs under subch. VI of ch. 560 and the technology zone program under s. 560.96 that includes all of the following information:

SB357,16,25 1. Identification of all development zones and technology zones in effect and the total amount of tax credits that may be claimed in each of those zones.

SB357,17,2 2. The total tax credits claimed, both in the previous calendar year and since the zone was designated, in each development zone or technology zone in effect.

SB357,17,7 3. A listing of every person in each development zone or technology zone in effect that has been awarded tax credits, together with an itemization of the total amount of such tax credits certified for each person, the total amount of such tax credits claimed by each person in the year of the report, and the aggregate total of all such tax credits claimed by each person.

SB357,17,9 4. A public purpose, other than expanding the property tax base, for which each person listed in subd. 3. was certified for tax credits.

SB357,17,11 5. The progress each person listed in subd. 3. has made in achieving the public purpose specified in subd. 4.

SB357,17,13 6. The criteria used to measure the progress made in achieving the public purpose specified in subd. 4.

SB357,17,16 7. The total number of jobs that have been created, both in the previous calendar year and since the zone was designated, in each development zone or technology zone in effect, shown in separate wage bands.

SB357,17,19 8. The total number of jobs that have been retained, both in the previous calendar year and since the zone was designated, in each development zone or technology zone in effect, shown in separate wage bands.

SB357,17,22 (5) Public record requirement. Business subsidy applications, all documents related to business subsidy applications, recipient reports under sub. (3), and grantor reports under sub. (4) are open to public inspection.

SB357,18,3 (6) Responsibility for compliance and relation to other requirements. (a) If the agency that awards a business subsidy is different from the agency that provides the business subsidy, the agency that provides the business subsidy shall determine how the requirements under this section for the grantor of the business subsidy will be met, and may delegate the responsibility for those requirements to the agency that awards the business subsidy.

SB357,18,6 (b) A state agency that administers an economic development program under which a local government agency is the grantor of state funds shall ensure that the local government agency complies with this section.

SB357,18,9 (c) The legislative audit bureau shall determine whether this section applies to an agency with respect to assistance provided by the agency in the event that there is disagreement or uncertainty over whether this section applies.

SB357,18,17 (d) Except as provided in sub. (1) (d) 2., an agency or recipient must comply with the requirements under this section related to awarding or providing a business subsidy, including the awarding criteria developed under sub. (1) (a), the subsidy agreement under sub. (2), and the recipient reporting requirements under sub. (3), in addition to any other requirements with which an agency or recipient must comply with respect to the business subsidy. If a conflict exists between a requirement under this section and any other requirement with respect to a business subsidy, the requirement under this section controls.

SB357,18,19 (e) The department of administration shall annually notify all agencies of their responsibilities under this section.

SB357, s. 5 Section 5. 66.1105 (13) of the statutes is amended to read:

SB357,19,3 66.1105 (13) The department of commerce, in cooperation with other state agencies and local governments, shall make a comprehensive report to the governor and the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2), at the beginning of each biennium, beginning with the 1977 biennium, as to the effects and impact of tax incremental financing projects socially, economically, and financially. Beginning with the 2005 biennium, the department of commerce shall also provide a copy of the report to the legislative audit bureau for purposes of the report requirement under s. 13.94 (12).

SB357, s. 6 Section 6. 71.07 (2dx) (a) 4. of the statutes is amended to read:

SB357,19,14 71.07 (2dx) (a) 4. "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay compensation that is equal to at least 150% of the federal minimum wage and receives benefits that are not required by federal or state law 200 percent of the federal poverty line, as defined under 42 USC 9902 (2), for a family of 2 persons. Compensation may include health insurance premiums paid by the employer on behalf of the employee, for purposes of determining whether the compensation requirement is met. "Full-time job" does not include initial training before an employment position begins.

SB357, s. 7 Section 7. 71.28 (1dx) (a) 4. of the statutes is amended to read:

SB357,19,25 71.28 (1dx) (a) 4. "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay compensation that is equal to at least 150% of the federal minimum wage and receives benefits that are not required by federal or state law 200 percent of the federal poverty line, as defined under 42 USC 9902 (2), for a family of 2 persons. Compensation may include health insurance premiums paid by the employer on behalf of the employee, for purposes of determining whether the compensation requirement is met. "Full-time job" does not include initial training before an employment position begins.

SB357, s. 8 Section 8. 71.47 (1dx) (a) 4. of the statutes is amended to read:

SB357,20,11 71.47 (1dx) (a) 4. "Full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay compensation that is equal to at least 150% of the federal minimum wage and receives benefits that are not required by federal or state law 200 percent of the federal poverty line, as defined under 42 USC 9902 (2), for a family of 2 persons. Compensation may include health insurance premiums paid by the employer on behalf of the employee, for purposes of determining whether the compensation requirement is met. "Full-time job" does not include initial training before an employment position begins.

SB357, s. 9 Section 9. 560.70 (2m) of the statutes is amended to read: