AB75: Bill Text

AB75,1516,4 (4) Rule making. The department shall promulgate rules for the administration of this section.

AB75,1516,7 (5) The department shall establish by rule a Wisconsin venture fund advisory council, which shall make recommendations to the department regarding all of the following:

AB75,1516,9 (a) A process by which the department, the department of financial institutions, and other qualified persons may review proposals.

AB75,1516,10 (b) The maximum amount of a grant awarded under sub. (2) or (3).

AB75,1516,13 (c) Requirements that applicants for grants under subs. (2) and (3) secure funding from sources other than the state to match a portion of the amount of a grant awarded under sub. (2) or (3).

AB75,1516,15 (d) Monitoring of projects funded by grants under sub. (2) or (3), including monitoring of job creation.

AB75, s. 3076 Section 3076. Subchapter II of chapter 560 [precedes 560.30] of the statutes is created to read:

AB75,1516,18 CHAPTER 560

AB75,1516,20 SUBCHAPTER iI forward innovation fund

AB75, s. 3077 Section 3077. 560.30 of the statutes is created to read:

AB75,1516,22 560.30 Definitions. In this subchapter:

AB75,1516,23 (1) "Board" means the economic policy board created under s. 15.155 (2).

AB75,1517,3 (2) "Business" means a company located in this state, a company that has made a firm commitment to locate a facility in this state, or a group of companies at least 80 percent of which are located in this state.

AB75,1517,7 (3) "Cluster" means a geographic, categorical, horizontal, or vertical concentration of interconnected, interdependent, or synergistic businesses, industries, research centers, or venues for the performance, creation, or display of the arts.

AB75,1517,9 (4) "Community-based organization" means an organization that is involved in economic development and helps businesses that are likely to employ persons.

AB75,1517,11 (5) "Economically distressed area" means an area designated by the department using the methodology established by rule under s. 560.301 (2).

AB75,1517,12 (6) "Eligible activity" means any of the following:

AB75,1517,13 (a) The start-up, expansion, or retention of minority businesses.

AB75,1517,15 (b) The start-up, expansion, or retention of businesses in economically distressed areas.

AB75,1517,16 (c) Innovative proposals to strengthen inner cities.

AB75,1517,17 (d) Innovative proposals to strengthen communities in rural municipalities.

AB75,1517,18 (e) Innovative programs to strengthen clusters.

AB75,1517,19 (f) Innovative proposals to strengthen entrepreneurship.

AB75,1517,20 (7) "Eligible recipient" means any of the following:

AB75,1517,21 (a) A business or small business.

AB75,1517,22 (b) The governing body of a municipality.

AB75,1517,23 (c) A community-based organization.

AB75,1517,25 (d) A cooperative or association incorporated under ch. 185 or organized under ch. 193.

AB75,1518,1 (e) A local development corporation.

AB75,1518,3 (f) A nonprofit organization whose primary purpose is to promote the economic development of or community development in a particular area or region in the state.

AB75,1518,5 (8) "Governing body" means a county board, city council, village board, or town board.

AB75,1518,6 (9) "Local development corporation" means any of the following:

AB75,1518,8 (a) The elected governing body of a federally recognized American Indian tribe or band in this state or any business created by the elected governing body.

AB75,1518,11 (b) A corporation organized under ch. 181 that is a nonprofit corporation, as defined in s. 181.0103 (17), that is at least 51 percent controlled and actively managed by minority group members, and that does all of the following:

AB75,1518,12 1. Operates primarily within specific geographic boundaries.

AB75,1518,14 2. Promotes economic development and employment opportunities for minority group members or minority businesses within the specific geographic area.

AB75,1518,17 3. Demonstrates a commitment to or experience in promoting economic development and employment opportunities for minority group members or minority businesses.

AB75,1518,18 (10) "Minority business" has the meaning given in s. 560.036 (1) (e).

AB75,1518,19 (11) "Minority group member" has the meaning given in s. 560.036 (1) (f).

AB75,1518,20 (12) "Municipality" means a county, city, village, or town.

AB75,1518,21 (13) "Rural municipality" means any of the following:

AB75,1518,23 (a) A municipality that is located in a county with a population density of less than 150 persons per square mile.

AB75,1518,24 (b) A municipality with a population of 6,000 or less.

AB75,1519,2 (14) "Small business" means a business with fewer than 100 employees, including employees of any subsidiary or affiliated organization.

AB75, s. 3078 Section 3078. 560.301 of the statutes is created to read:

AB75,1519,8 560.301 Rules, policies, and standards for awarding grants and making loans. The department, in consultation with the board, shall promulgate rules that establish procedures, policies, and standards for implementing this subchapter and awarding grants and making loans under this subchapter. The rules shall include all of the following:

AB75,1519,11 (1) A statement of the department's economic development objectives for the program under this subchapter, together with the goals and accountability measures required under s. 560.01 (2) (ae).

AB75,1519,14 (2) The methodology for designating an area as economically distressed. The methodology under this subsection shall require the department to consider the most current data available for the area and for the state on the following indicators:

AB75,1519,15 (a) Unemployment rate.

AB75,1519,17 (b) Percentage of families with incomes below the poverty line established under 42 USC 9902 (2).

AB75,1519,18 (c) Median family income.

AB75,1519,19 (d) Median per capita income.

AB75,1519,20 (e) Average annual wage.

AB75,1519,21 (f) Real property values.

AB75,1519,23 (g) Other significant or irregular indicators of economic distress, such as a natural disaster.

AB75,1520,3 (3) Provisions for the development of a biennial plan for awarding grants and making loans under this subchapter, before the commencement of each odd-numbered fiscal year, and for the submission of the biennial plan to the governor and the chief clerk of each house of the legislature for distribution to the appropriate standing committees under s. 13.172 (3).

AB75,1520,5 (4) Procedures related to grants and loans under s. 560.304 for all of the following:

AB75,1520,6 (a) Submitting applications for grants and loans.

AB75,1520,7 (b) Evaluating applications.

AB75,1520,8 (c) Monitoring project performance.

AB75,1520,9 (d) Auditing the grants and loans.

AB75,1520,10 (5) Conditions applicable to a grant awarded or loan made under s. 560.304.

AB75,1520,14 (6) Procedures for monitoring the use of grants awarded and loans made under this subchapter, including procedures for verification of economic growth, job creation, and the number and percentage of newly created jobs for which state residents are hired.

AB75, s. 3079 Section 3079. 560.302 of the statutes is created to read:

AB75,1520,18 560.302 Grant and loan criteria. Upon receipt of an application by an eligible recipient, the department may consider any of the following in determining whether to award a grant or make a loan under s. 560.304:

AB75,1520,20 (1) Whether the eligible activity proposed to be conducted by the eligible recipient serves a public purpose.

AB75,1520,22 (2) Whether the eligible activity proposed to be conducted by the eligible recipient will retain or increase employment in this state.

AB75,1520,24 (3) Whether the eligible activity proposed to be conducted by the eligible recipient is likely to occur without the grant or loan.

AB75,1521,3 (4) Whether and the extent to which the eligible activity proposed to be conducted by the eligible recipient will contribute to the economic growth of this state and the well-being of residents of this state.

AB75,1521,5 (5) Whether the eligible activity proposed to be conducted by the eligible recipient will be located in an economically distressed area.

AB75,1521,7 (6) The economic condition of the community in which the eligible activity proposed to be conducted by the eligible recipient is proposed to occur.

AB75,1521,9 (7) The potential of the eligible activity proposed to be conducted by the eligible recipient to promote the employment of minority group members.

AB75,1521,12 (8) Any other criteria established by the department by rule, including the types of projects that are eligible for funding and the types of eligible projects that will receive priority.

AB75, s. 3080 Section 3080. 560.303 of the statutes is created to read:

AB75,1521,17 560.303 Miscellaneous and administrative expenditures. In each biennium, the department may expend or encumber up to a total of 1 percent of the moneys appropriated under s. 20.143 (1) (fi) for that biennium for any of the following:

AB75,1521,18 (1) Evaluations of proposed technical research projects.

AB75,1521,21 (3) Evaluation costs, collection costs, foreclosure costs, and other costs associated with administering the loan portfolio under this subchapter, excluding staff salaries.

AB75, s. 3081 Section 3081. 560.304 of the statutes is created to read:

AB75,1522,2 560.304 Forward innovation fund. The department may award a grant or make a loan to an eligible recipient from the appropriations under s. 20.143 (1) (fi) (gm), and (io). The department shall consult with the board prior to awarding a grant or making a loan under this section.

AB75, s. 3082 Section 3082. 560.305 of the statutes is created to read:

AB75,1522,8 560.305 Administration. (1) The department, in cooperation with the board, shall encourage small businesses to apply for grants and loans under this subchapter by ensuring that there are no undue impediments to their participation and by actively encouraging small businesses to apply for grants and loans. The department shall do all of the following:

AB75,1522,11 (a) Publish and disseminate information about projects that may be funded by a grant or loan under s. 560.304 and about procedures for applying for grants and loans under s. 560.304.

AB75,1522,13 (b) Simplify the application and review procedures for small businesses so that they will not impose unnecessary administrative burdens on small businesses.

AB75,1522,14 (c) Assist small businesses in preparing applications for grants and loans.

AB75,1522,18 (2) The department may charge a grant or loan recipient an origination fee of not more than 2 percent of the grant or loan amount if the grant or loan equals or exceeds $100,000. The department shall deposit all origination fees collected under this subsection into the appropriation account under s. 20.143 (1) (gm).

AB75,1522,23 (3) The board shall develop a policy relating to obtaining reimbursement of grants and loans provided under this subchapter. The policy may provide that reimbursement shall be obtained through full repayment of the principal amount of the grant or loan plus interest, through receipt of a share of future profits from or an interest in a product or process, or through any other appropriate means.

AB75,1523,3 (4) The board shall require, as a condition of a grant or loan, that a recipient contribute to a project an amount that is not less than 25 percent of the amount of the grant or loan.

AB75, s. 3083 Section 3083. 560.60 (1s) of the statutes is amended to read:

AB75,1523,6 560.60 (1s) "Board" means the development finance economic policy board created under s. 15.155 (1) (2).