AB40: Bill Text

AB40,1211,16 (2) (intro.) A local governing body may nominate the area as a development zone by submitting an application to the department corporation in a form prescribed by the department corporation. The application shall include all of the following:

AB40,1211,18 (c) Evidence that the area meets at least 3 of the criteria under s. 560.71 238.31 (1) (e) 4.

AB40,1211,20 (d) Evidence that the area meets the applicable requirements of s. 560.735 238.335.

AB40,1211,22 (f) A description of past and present economic development activities in the area under local, state, or federal programs.

AB40,1211,23 (i) Any other information required by the department corporation.

AB40,1212,3 (3) Two or more local governing bodies may submit a joint application nominating an area as a development zone, subject to s. 560.735 238.335 (2), if each local governing body complies with subs. (1) and (2).

AB40,1212,6 (5) The department corporation may permit a local governing body to revise an application that the department corporation determines is inadequate or incomplete.

AB40, s. 3422 Section 3422. 560.725 of the statutes is renumbered 238.325 and amended to read:

AB40,1212,10 238.325 Evaluation by department corporation. (1) The department corporation shall evaluate applications received under s. 560.72 238.32 (2) and (3).

AB40,1212,16 (2) Subject to s. 560.735 238.335 (5), the department corporation may reduce the size of an area nominated as a development zone, if the department corporation determines the boundaries as proposed by the local governing body in an application under s. 560.72 238.32 (2) or (3) are inconsistent with the purpose of the development zone program. Any nominated area which is reduced under this subsection need not comply with s. 560.735 238.335 (1) and (4).

AB40,1212,21 (3) After evaluating an application submitted under s. 560.72 238.32 (2) or (3), the department corporation may approve the application, subject to any reduction in the size of the nominated area under sub. (2). If the department corporation approves the application, the department corporation shall designate the area as a development zone, subject to s. 560.71 238.31, and notify the local governing body.

AB40, s. 3423 Section 3423. 560.735 of the statutes is renumbered 238.335, and 238.335 (1) (a) and (c), (2), (5) (a) and (b), (6) (a) 1. and 2. and (c), (6r) and (7), as renumbered, are amended to read:

AB40,1213,2 238.335 (1) (a) The area contains less than 10% of the valuation of the property of the city, village, or town, as determined under s. 70.57, in which the area is located.

AB40,1213,5 (c) If the area is located within a village, town, or city other than a 1st class city, the population of the area is not less than 1,000 nor more than 10,000, as estimated under s. 16.96.

AB40,1213,8 (2) If an area is located within the boundaries of 2 or more cities, villages, or towns, the property value of the cities, villages, or towns under sub. (1) (a) shall be combined for the purposes of sub. (1).

AB40,1213,11 (5) (a) The area has a continuous border following natural or man-made boundaries such as streets, highways, rivers, municipal limits, or limits of a reservation.

AB40,1213,12 (b) The area consists of contiguous blocks, census blocks, or similar units.

AB40,1213,15 (6) (a) 1. Each of the areas has a continuous border following natural or man-made boundaries and consists of contiguous blocks, census blocks , or similar units.

AB40,1213,16 2. Each area meets at least 3 of the criteria listed in s. 560.71 238.31 (1) (e) 4.

AB40,1213,19 (c) If an application is submitted by the governing body of a county under s. 560.72 238.32 (2) or (3), up to 4 separate areas may be nominated or designated as one development zone, if par. (a) 1. to 3. applies.

AB40,1213,24 (6r) Subject to the population limit under sub. (6m), if an area that is nominated or designated as a development zone is comprised of one or more entire counties and a city, village, or town is partially located in the area and partially located outside of the area, the entire city, village, or town shall be part of the nominated or designated area.

AB40,1214,3 (7) The department corporation may waive the requirements of this section in a particular case, if the department corporation determines that application of the requirement is impractical with respect to a particular development zone.

AB40, s. 3424 Section 3424. 560.737 of the statutes is repealed.

AB40, s. 3425 Section 3425. 560.74 of the statutes is renumbered 238.34, and 238.34 (1), (2), (3) (intro.) and (a), (4), (5) and (6), as renumbered, are amended to read:

AB40,1214,12 238.34 (1) Except as provided under sub. (6), at any time after a development zone is designated by the department corporation, a local governing body may submit an application to change the boundaries of the development zone. If the boundary change reduces the size of a development zone, the local governing body shall explain why the area excluded should no longer be in a development zone. The department corporation may require the local governing body to submit additional information.

AB40,1214,16 (2) The department corporation may approve an application for a boundary change if the development zone, as affected by the boundary changes, meets the applicable requirements of s. 560.735 238.335 and 3 of the criteria under s. 560.71 238.31 (1) (e) 4.

AB40,1214,18 (3) (intro.) If the department corporation approves an application for a boundary change under sub. (2), it shall do all of the following:

AB40,1214,20 (a) Redetermine the limit on the tax benefits for the development zone established under s. 560.745 238.345 (2) (a).

AB40,1214,23 (4) The change in the boundaries or tax benefits limit of a development zone shall be effective on the day the department corporation notifies the local governing body under sub. (3) (b).

AB40,1215,3 (5) No change in the boundaries of a development zone may affect the duration of an area as a development zone under s. 560.745 238.345 (1) (a). The department corporation may consider a change in the boundary of a development zone when evaluating an application for an extension of the designation of an area as a development zone under s. 560.745 238.345 (1) (b).

AB40,1215,6 (6) The department corporation may not accept any applications under sub. (1) to change the boundaries of a development zone designated under s. 560.71 238.31 on or after March 6, 2009.

AB40, s. 3426 Section 3426. 560.745 of the statutes is renumbered 238.345, and 238.345 (1) (a) and (b), (2) (a), (am), (b), (c) 1. and 2. and (d) and (3), as renumbered, are amended to read:

AB40,1215,12 238.345 (1) (a) The designation of an area as a development zone shall be effective for 240 months, beginning on the day the department notifies the local governing body under s. 560.725 238.325 (3) of the designation.

AB40,1215,18 (b) The local governing body may apply to the department corporation for one 60-month extension of the designation. The department corporation shall promulgate adopt rules establishing criteria for approving an extension of a designation of an area as a development zone under this subsection. No applications may be accepted by the department corporation under this paragraph on or after March 6, 2009.

AB40,1215,21 (2) (a) When the department corporation designates a development zone under s. 560.71 238.31, it shall establish a limit for tax benefits for the development zone determined by allocating to the development zone a portion of $38,155,000.

AB40,1215,25 (am) Notwithstanding par. (a), the department corporation may increase the established limit for tax benefits for a development zone. The department corporation may not increase the limit for tax benefits established for any development zone designated under s. 560.71 238.31 on or after March 6, 2009.

AB40,1216,2 (b) Annually the department corporation shall estimate the amount of forgone state revenue because of tax benefits claimed by persons in each development zone.

AB40,1216,5 (c) 1. Ninety days after the day on which the department corporation determines that the forgone tax revenues under par. (b) will equal or exceed the limit for the development zone established under par. (a) or (am).

AB40,1216,7 2. The day that the department corporation withdraws its designation of an area as a development zone under sub. (3).

AB40,1216,9 (d) The department corporation shall immediately notify the local governing body of a change in the expiration date of the development zone under par. (c).

AB40,1216,11 (3) The department corporation may withdraw the designation of an area as a development zone if any of the following apply applies:

AB40,1216,15 (a) No person is certified as eligible to receive tax benefits under s. 560.765 238.365 (3) during the 12-month period beginning on the day the area is designated as a development zone and the department corporation determines that the local governing body that nominated the zone is not in compliance with s. 560.763 238.363.

AB40,1216,18 (b) No person is certified as eligible to receive tax benefits under s. 560.765 238.365 (3) during the 24-month period beginning on the day the area is designated a development zone.

AB40, s. 3427 Section 3427. 560.75 of the statutes is renumbered 238.35, and 238.35 (intro.), (6), (7), (8) and (10), as renumbered, are amended to read:

AB40,1216,22 238.35 Additional duties of the department corporation. (intro.) The department corporation shall do all of the following:

AB40,1217,4 (6) Notify University of Wisconsin Wisconsin-Madison and University of Wisconsin System small business development centers, the Wisconsin housing and development centers, the central administration of the University of Wisconsin-Madison campus and all University of Wisconsin System campuses and regional planning commissions about the development zone program and encourage those entities to provide advice to the department corporation or local governing bodies on ways to improve the development zone program.

AB40,1217,5 (7) Prepare forms for the certification described under s. 560.765 238.365 (5).

AB40,1217,7 (8) Annually verify information submitted to the department corporation under s. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), or 76.636.

AB40,1217,11 (10) Enter into an agreement with the local governing body of a 1st class city where a development zone is designated under s. 560.71 238.31 (3) (c) 1. to provide efficient administration of the development zone program within the development zone.

AB40, s. 3428 Section 3428. 560.763 of the statutes is renumbered 238.363, and 238.363 (1) (intro.) and (c) and (4), as renumbered, are amended to read:

AB40,1217,16 238.363 (1) (intro.) If an area nominated by a local governing body is designated as a development zone under s. 560.71 238.31, the local governing body shall do all of the following:

AB40,1217,18 (c) Assist the department corporation in the administration of the development zone program.

AB40,1217,22 (4) The local governing body of a 1st class city where a development zone is designated under s. 560.71 238.31 (3) (c) 1. shall enter into an agreement with the department corporation to provide efficient administration of the development zone program within the development zone.

AB40, s. 3429 Section 3429. 560.765 of the statutes is renumbered 238.365, and 238.365 (intro.), (2), (3) (intro.), (b), (c), (e) and (j) and (5) (e), (g) and (h), as renumbered, are amended to read:

AB40,1218,2 238.365 Certification for tax benefits. (intro.) The department corporation shall do all of the following:

AB40,1218,4 (2) Determine whether a person applying for tax benefits engages or will engage in economic activity which that violates s. 560.78 238.38 (1).

AB40,1218,7 (3) (intro.) Subject to s. 560.78 238.38, certify persons who are eligible to claim tax benefits while an area is designated as a development zone, according to the following criteria:

AB40,1218,9 (b) The person's commitment not to engage in economic activity that violates s. 560.78 238.38 (1).

AB40,1218,12 (c) The number of full-time jobs that will be created, retained, or substantially upgraded as a result of the person's economic activity in relation to the amount of tax benefits estimated for the person under sub. (4).

AB40,1218,15 (e) The amount the person proposes to invest in a business, or spend on the construction, rehabilitation, repair, or remodeling of a building, located within the development zone.

AB40,1218,17 (j) Any other criteria established under rules promulgated adopted by the department corporation.

AB40,1218,19 (5) (e) The estimated number of full-time jobs that will be created, retained, or significantly upgraded in the development zone because of the person's business.

AB40,1218,21 (g) The limit under s. 560.768 238.368 on tax benefits the person may claim while an area is designated as a development zone.

AB40,1218,23 (h) Other information required by the department corporation or the department of revenue.

AB40, s. 3430 Section 3430. 560.768 of the statutes is renumbered 238.368, and 238.368 (1) (a) and (b), (2) (intro.) and (b) and (3) (a) (intro.) and 1. and (b), as renumbered, are amended to read:

AB40,1219,6 238.368 (1) (a) The department corporation shall establish a limit on the maximum amount of tax benefits a person certified under s. 560.765 238.365 (3) may claim while an area is designated as a development zone.

AB40,1219,8 (b) When establishing a limit on tax benefits under par. (a), the department corporation shall do all of the following:

AB40,1219,9 1. Consider all of the criteria described in s. 560.765 238.365 (3) (a) to (e).

AB40,1219,15 2. Establish a limit which does not greatly exceed a recommended limit, established under rules promulgated adopted by the department corporation based on the cost, number and types of full-time jobs that will be created, retained, or upgraded, including full-time jobs available to members of the targeted population, as a result of the economic activity of the person certified under s. 560.765 238.365 (3).

AB40,1219,18 (2) (intro.) The department corporation may, upon request, increase a limit on tax benefits established under sub. (1) if the department corporation does all of the following:

AB40,1219,21 (b) Revises the certification required under s. 560.765 238.365 (5) and provides a copy of the revised form to the department of revenue and the person whose limit is increased under this subsection.

AB40,1219,24 (3) (a) (intro.) The department corporation may reduce a limit established under sub. (1) or (2) if the department corporation determines that any of the following applies:

AB40,1220,2 1. The limit is not consistent with the criteria listed under s. 560.765 238.365 (3) (a) to (e).

AB40,1220,5 (b) The department corporation shall notify the department of revenue and the person whose limit on tax benefits is reduced under par. (a) and provide a written explanation to the person of the reasons for reducing the limit.

AB40, s. 3431 Section 3431. 560.77 of the statutes is renumbered 238.37, and 238.37 (1) (intro.) and (b) and (2), as renumbered, are amended to read:

AB40,1220,9 238.37 (1) (intro.) The department corporation shall revoke the certification of a person certified under s. 560.765 238.365 (3) if the person does any of the following:

AB40,1220,10 (b) Becomes subject to revocation under s. 560.78 238.38 (1).

AB40,1220,12 (2) The department corporation shall notify the department of revenue within 30 days of revoking a certification under sub. (1).

AB40, s. 3432 Section 3432. 560.78 of the statutes is renumbered 238.38, and 238.38 (1) (intro.), (1m), (2) (intro.) and (a) and (3) (a) and (b), as renumbered, are amended to read:

AB40,1220,20 238.38 (1) (intro.) Except as provided in subs. (2) and (3), no person may be certified under s. 560.765 238.365 (3), or a person's certification may be revoked under s. 560.77 238.37, if the proposed new business, expansion of an existing business, or other proposed economic activity in a development zone would do or does any of the following:

AB40,1220,22 (1m) No person may be certified under s. 560.765 238.365 (3) on or after March 6, 2009.

AB40,1220,25 (2) (intro.) Subsection (1) does not apply if, after a hearing, the department corporation, or the local governing body under sub. (3) (a), determines that any of the following applies:

AB40,1221,3 (a) The total number of full-time jobs provided by the person in this state would be reduced if the person were not certified under s. 560.765 238.365 (3) or if the person's certification were revoked.

AB40,1221,10 (3) (a) Except as provided in pars. (b) and (c), if the economic activity for which a person is seeking certification under s. 560.765 238.365 (3) is the relocation of a business into a development zone from a location that is outside the development zone but within the limits of a city, village, town, or federally recognized American Indian reservation in which that development zone is located, the local governing body that nominated that area as a development zone under s. 560.72 238.32 shall determine whether sub. (2) (a) or (b) applies.

AB40,1221,16 (b) Only the department corporation may determine whether sub. (2) (a) or (b) applies to a business relocation described in par. (a) if the business relocation would likely result in the loss of full-time jobs at or transfer of employees from a business location that is in this state but outside the limits of any city, village, town, or federally recognized American Indian reservation in which the development zone is located.

AB40, s. 3433 Section 3433. 560.785 of the statutes is renumbered 238.385, and 238.385 (1) (intro.), (b), (bm) and (c) (intro.) and (2) (intro.), (b) and (c), as renumbered, are amended to read:

AB40,1221,25 238.385 (1) (intro.) For the development zone program under ss. 560.70 and 560.71 to 560.78 238.30 and 238.31 to 238.38, the development opportunity zone program under s. 560.795 238.395, and the enterprise development zone program under s. 560.797 238.397, the department corporation shall promulgate adopt rules that further define a person's eligibility for tax benefits. The rules shall do at least all of the following:

AB40,1222,4 (b) Allow a person to claim up to $8,000 in tax benefits during the time that an area is designated as a development zone, as a development opportunity zone, or as an enterprise development zone for creating a full-time job that is filled by a member of the target population.