SB393: Bill Text

2009 Senate BILL 393

November 18, 2009 - Introduced by Senator Taylor, cosponsored by Representatives Young, Turner, A. Williams, Grigsby, Zepnick, Kessler, Richards and Berceau. Referred to Committee on Commerce, Utilities, Energy, and Rail.

SB393,1,5 An Act to amend 20.143 (1) (im), 20.143 (1) (io), 34.05 (1), 560.13 (2) (b) 1. and 560.45 (1); and to create 15.155 (3m), 20.143 (1) (fm), 25.17 (59), 34.045 (1m), 34.05 (4) and subchapter VII of chapter 560 [precedes 560.80] of the statutes; relating to: restoring the Minority Business Development Board and the Minority Business Grant and Loan Program.

Analysis by the Legislative Reference Bureau

The Minority Business Grants and Loans Program (program), administered by the Department of Commerce (department), and the Minority Business Development Board (board) in the department, were eliminated by 2009 Wisconsin Act 28 (the biennial budget act). Under the program, the board was authorized to award a grant or loan to a minority group member, a minority business, certain nonprofit organizations, or private financial institutions. Minority group member was defined to mean any of the following persons: a) a black; b) a Hispanic; c) an American Indian; d) an Eskimo; e) an Aleut; f) a native Hawaiian; g) an Asian-Indian; h) a person of Asian-Pacific origin. Minority business was defined to mean a sole proprietorship, partnership, limited liability company, joint venture, or corporation with a principal place of business in Wisconsin that fulfilled both of the following requirements: it is at least 51 percent owned, controlled and actively managed by a minority group member or members who are U.S. citizens or persons lawfully admitted to the United States for permanent residence, and it is currently performing a useful business function. The recipient of a grant or loan under the program was required to undertake certain eligible activities, including education and training projects or the start-up, expansion, or acquisition of a business.

This bill restores the board and the program as it existed before the biennial budget act.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

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

SB393, s. 1 Section 1. 15.155 (3m) of the statutes is created to read:

SB393,2,4 15.155 (3m) Minority business development board. There is created a minority business development board attached to the department of commerce under s. 15.03 consisting of members appointed by the governor for 2-year terms.

SB393, s. 2 Section 2. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB393, s. 3 Section 3. 20.143 (1) (fm) of the statutes is created to read:

SB393,2,9 20.143 (1) (fm) Minority business projects; grants and loans. Biennially, the amounts in the schedule for grants and loans under s. 560.82.

SB393, s. 4 Section 4. 20.143 (1) (im) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB393,3,3 20.143 (1) (im) Minority business projects; repayments. All moneys received on or before June 30, 2009, in repayment of grants or loans under s. 560.82 (1m) (b), 2007 stats., and s. 560.82 (1m) (c), 2007 stats., and loans under 1997 Wisconsin Act 9, section 3, to be used for grants and loans under s. 560.45 and subch. II of ch. 560 560.82 and for the study under 2009 Wisconsin Act 28, section 9110 (15u).

SB393, s. 5 Section 5. 20.143 (1) (io) of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB393,3,9 20.143 (1) (io) Grant and loan repayments; forward innovation fund. All moneys received in repayment of grants or loans under subch. II of ch. 560, grants or loans under s. 560.82 (1m) (b) and (c), 2007 stats., and loans under 1997 Wisconsin Act 9, section 3, to be used for grants and loans under subch. II of ch. 560.

SB393, s. 6 Section 6. 25.17 (59) of the statutes is created to read:

SB393,3,13 25.17 (59) Invest or deposit money from the appropriation under s. 20.143 (1) (fm) in a public depository located in this state that is at least 51 percent owned by a minority group member or minority group members, as defined in s. 560.036 (1) (f).

SB393, s. 7 Section 7. 34.045 (1m) of the statutes is created to read:

SB393,3,16 34.045 (1m) Subsection (1) (a) and (e) does not apply to the funds appropriated under s. 20.143 (1) (fm) that are deposited as provided in s. 34.05.

SB393, s. 8 Section 8. 34.05 (1) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB393,4,4 34.05 (1) The Except as provided in sub. (4), the governing board of each public depositor shall, by resolution, designate one or more public depositories, organized and doing business under the laws of this state or federal law and located in this state, in which the treasurer of the governing board shall deposit all public moneys received by him or her and specify whether the moneys shall be maintained in time deposits subject to the limitations of s. 66.0603 (1m), demand deposits, or savings deposits and whether a surety bond or other security shall be required to be furnished under s. 34.07 by the public depository to secure the repayment of such deposits. A designation of a public depository by the governing board shall be a designation of the public depository for all treasurers of the governing board and for all public depositors for which each treasurer shall act.

SB393, s. 9 Section 9. 34.05 (4) of the statutes is created to read:

SB393,4,9 34.05 (4) Money from the appropriation under s. 20.143 (1) (fm) shall be deposited in a public depository located in this state that is at least 51 percent owned by a minority group member or minority group members, as defined in s. 560.036 (1) (f).

SB393, s. 10 Section 10. 560.13 (2) (b) 1. of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

SB393,4,16 560.13 (2) (b) 1. The contribution required under par. (a) 3. may be in cash or in-kind. Cash contributions may be of private or public funds, excluding funds obtained under the program under s. 560.17 or under any program under subch. II or V or VII of this chapter. In-kind contributions shall be limited to actual remediation services.

SB393, s. 11 Section 11. 560.45 (1) of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB393,4,21 560.45 (1) The department may award a grant from the appropriations under s. 20.143 (1) (ie), (ig), (im), and (ir) to a business for innovation and research assistance.

SB393, s. 12 Section 12. Subchapter VII of chapter 560 [precedes 560.80] of the statutes is created to read:

SB393,4,24 CHAPTER 560

SB393,4,25 SUBCHAPTER VII

SB393,5,1 MInority business grants and Loans

SB393,5,2 560.80 Definitions. In this subchapter:

SB393,5,3 (1) "Board" means the minority business development board.

SB393,5,7 (2) "Development project" means the start-up of a business, or the expansion or acquisition of an existing business, that is or will be a minority business or the promotion of economic development and employment opportunities for minority group members or minority businesses.

SB393,5,9 (3) "Early planning project" means the preliminary stages of considering and planning the start-up or expansion of a business that will be a minority business.

SB393,5,12 (3m) "Education and training project" means a business education and training program for minority group members and minority businesses that have received loans for working capital from an eligible recipient under s. 560.82 (1m) (e).

SB393,5,17 (4) "Eligible development project costs" means costs that, in accordance with sound business and financial practices, are appropriately incurred in connection with a development project, but does not include entertainment expenses or expenses incurred more than 6 months before the board approves a grant or loan under s. 560.82 (1m) (b).

SB393,5,18 (5) "Eligible recipient" means any of the following:

SB393,5,19 (a) An individual who is a minority group member and a resident of this state.

SB393,5,20 (b) A minority business.

SB393,5,21 (c) A person who is eligible to receive a grant under s. 560.82 (1m) (d) or (e).

SB393,5,23 (5m) "Finance project" means financial assistance to a minority group member or a minority business described in s. 560.82 (1m) (d) and (e).

SB393,6,2 (6) "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. "Job" does not include initial training before an employment position begins.

SB393,6,3 (7) "Local development corporation" means any of the following:

SB393,6,5 (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.

SB393,6,8 (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:

SB393,6,9 1. Operates primarily within specific geographic boundaries.

SB393,6,11 2. Promotes economic development and employment opportunities for minority group members or minority businesses within the specific geographic area.

SB393,6,14 3. Demonstrates a commitment to or experience in promoting economic development and employment opportunities for minority group members or minority businesses.

SB393,6,16 (8) "Minority business" means a minority business, as defined in s. 560.036 (1) (e), that has its principal place of business in this state.

SB393,6,17 (9) "Minority group member" has the meaning given in s. 560.036 (1) (f).

SB393,6,19 (10) "New minority business" means a minority business started as a result of an early planning project.

SB393,6,21 (11) "Project" means a development project, an early planning project, a finance project, an education and training project or a revolving fund project.

SB393,6,25 560.82 Minority business grants and loans. (1g) The department shall make a grant or loan to an eligible recipient or local development corporation under this section if the board awards a grant or loan to the eligible recipient or local development corporation under sub. (1m).

SB393,7,2 (1m) The board may award a grant or loan under this section to any of the following:

SB393,7,4 (a) Subject to s. 560.84, an eligible recipient, as defined in s. 560.80 (5) (a), to fund an early planning project.

SB393,7,7 (b) Subject to s. 560.84, an eligible recipient or local development corporation that submits application materials in a form specified by the department by rule to fund eligible development project costs.

SB393,7,9 (c) A local development corporation to make grants or loans under sub. (2g) (a) 1. or to fund a revolving fund program under sub. (2g) (a) 2.

SB393,7,12 (d) Subject to s. 560.84, a nonprofit organization or private financial institution, as defined in s. 234.01 (5k), whether or not for profit, to fund a finance project if all of the following apply:

SB393,7,14 1. The financial institution or nonprofit organization uses the grant proceeds for any of the following purposes:

SB393,7,16 a. To make loans for working capital to minority group members and minority businesses.

SB393,7,18 b. To pay origination fees or other administrative costs associated with making loans for working capital to minority group members and minority businesses.

SB393,7,19 2. The loans for working capital under subd. 1. a. do not exceed $5,000.

SB393,7,22 (e) Subject to s. 560.84, the board may award a grant under this subsection to a nonprofit organization that is a minority business to fund an education and training project.

SB393,7,25 (2) The board may not award a grant or loan under sub. (1m) (a) unless the eligible recipient, as defined in s. 560.80 (5) (a), submits an application, in a form required by the department, that contains or describes all of the following:

SB393,8,1 (a) Potential locations of the new minority business.

SB393,8,2 (b) The ownership structure of the new minority business.

SB393,8,3 (c) The product or service provided by the new minority business.

SB393,8,4 (d) The market for the product or service described in par. (c).

SB393,8,5 (e) Competition within the market described in par. (d).

SB393,8,6 (f) Any competitive advantages of the new minority business.

SB393,8,8 (g) The eligible recipient's estimate of the gross revenue of the new minority business over a period specified by the department.

SB393,8,10 (h) The process for manufacturing the product, or providing the services, of the new minority business.

SB393,8,12 (i) An estimate of the number of jobs that will be created by the new minority business.

SB393,8,13 (j) The eligible recipient's experience and training.

SB393,8,15 (k) The eligible recipient's estimate of the profit that will be generated by the new minority business over a period specified by the department.

SB393,8,17 (L) The eligible recipient's estimate of the capital required to complete the early planning project.

SB393,8,18 (m) Potential sources of financing for the early planning project.

SB393,8,19 (n) Any other information that the department requests.

SB393,8,21 (2g) The board may award a grant or loan under this subsection to a local development corporation if all of the following apply:

SB393,8,23 (a) The local development corporation agrees to use the proceeds of grants or loans under this section for any of the following:

SB393,8,25 1. To make grants or loans not exceeding $50,000 each to eligible recipients to fund eligible development project costs.