AB38: Bill Text

LRB-0859/2

MPG:eev:rs

2013 - 2014 LEGISLATURE

2013 Assembly BILL 38

February 20, 2013 - Introduced by Representatives Jorgensen, Stone, Barca, Krug, Berceau, Bernier, Bies, Czaja, Hebl, Honadel, Kahl, Kolste, T. Larson, Mason, Ohnstad, J. Ott, Pasch, Pope, Richards, Ringhand, Ripp, Spiros, Swearingen, Wright, Zamarripa and Smith, cosponsored by Senators Moulton, Lassa, Hansen, Miller and Shilling. Referred to Committee on Small Business Development.

AB38,1,3 An Act to create 238.14 of the statutes; relating to: a manufacturer marketing assistance program for Wisconsin Tier II and Tier III manufacturers and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill requires the Wisconsin Economic Development Corporation (WEDC) to establish, or award a grant to an association that represents manufacturers in this state to establish, a manufacturer marketing assistance program and to promote manufacturers' products and services. The grant or any moneys WEDC itself uses for the program may not exceed a total of $1,000,000 disbursed over five years. The bill specifies the purposes for which the grant proceeds may be used, including salaries and fringe benefits to certain association employees, operating expenses for a marketing and outreach office, and creating an Internet site for the association. The grant is funded by the economic development fund. The bill requires WEDC to review the program on an annual basis, and WEDC may cancel the program at any time.

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:

AB38,1 Section 1. 238.14 of the statutes is created to read:

AB38,2,3 238.14 Wisconsin Tier II and Tier III manufacturer marketing assistance program. (1) In this section:

AB38,2,5 (a) "Association" means an organization not organized or incorporated for profit that represents Wisconsin-based Tier II and Tier III manufacturers.

AB38,2,6 (b) "Eligible business" means any of the following:

AB38,2,7 1. A Tier II manufacturer.

AB38,2,8 2. A Tier III manufacturer.

AB38,2,11 (c) "Tier II manufacturer" means a business operating in this state that manufactures a product that is used as a part in a product produced or distributed for sale or sold to a consumer.

AB38,2,15 (d) "Tier III manufacturer" means a business operating in this state that manufactures a product that is used as a part in a product produced by a Tier II manufacturer or as a part in a product produced or distributed for sale or sold to a consumer.

AB38,2,19 (2) (a) The corporation shall establish, or grant moneys to an association under sub. (4) to establish, a manufacturer marketing assistance program to conduct marketing activities on behalf of, and to promote the manufacturing services of and products created by, eligible businesses.

AB38,3,2 (b) From the appropriation under s. 20.192 (1) (r), the corporation shall establish an account dedicated to the manufacturer marketing assistance program under this section. On January 1, 2014, the corporation shall deposit $250,000 into that account. After the deposit of those moneys, the corporation shall make additional deposits in the account as necessary to carry out the manufacturer marketing assistance program under this section, except that the corporation may not deposit more than a total of $1,000,000 in the account.

AB38,3,6 (c) If the corporation does not make a grant to an association under sub. (4), the corporation shall itself use the moneys deposited in the account under par. (b), in the manner required under sub. (4) (b), to carry out the manufacturer marketing assistance program under this section.

AB38,3,9 (3) (a) Subject to sub. (4), an association may apply to the corporation for a 5-year grant to establish and carry out the manufacturer marketing assistance program under this section.

AB38,3,10 (b) An association's application under par. (a) shall contain all of the following:

AB38,3,12 1. An itemized budget detailing expected expenses for all activities for which grant moneys are sought.

AB38,3,14 2. A description of how the activities for which grant moneys are sought will benefit the association's ability to market products of eligible businesses.

AB38,3,18 (4) (a) Subject to the requirements under pars. (b) and (c), from the account established under sub. (2) (b), the corporation may award one 5-year grant not to exceed $1,000,000 to an association that applies to the corporation for a grant under sub. (3). The corporation shall disburse the grant moneys as follows:

AB38,3,19 1. In the first year, $0.

AB38,3,20 2. In the 4 subsequent years, no more than $250,000 in each year.

AB38,3,22 (b) An association that is awarded a grant under this subsection shall use grant moneys awarded under this subsection to do all of the following:

AB38,3,25 1. Pay salaries and fringe benefits to staff whom the association employs exclusively to carry out the purposes of the manufacturer marketing assistance program under this section.

AB38,4,2 2. Purchase equipment and pay operating expenses for a marketing and outreach office.

AB38,4,4 3. Create and maintain an Internet site to carry out the purposes of the manufacturer marketing assistance program under this section.

AB38,4,6 4. Pay fees and costs of not more than 2 of the staff described under subd. 1. to travel to and participate in trade shows on behalf of eligible businesses.

AB38,4,8 5. Pay the costs associated with constructing, repairing, and transporting a display booth used at trade shows under subd. 4.

AB38,4,10 6. Pay the costs for travel to follow up on contacts made at trade shows under subd. 4.

AB38,4,13 7. Pay the costs of creating and producing brochures, catalogs, or other advertising material used to carry out the purposes of the manufacturer marketing assistance program under this section.

AB38,4,15 (c) An association that is awarded a grant under this subsection shall enter into a contract with the corporation that contains all of the following:

AB38,4,17 1. Conditions imposed by the corporation on the association's use of grant moneys.

AB38,4,19 2. The manner in which the corporation may reduce the amount of grant moneys received by the association on an annual basis over the 5-year contract term.

AB38,4,21 3. A requirement that the association submit annually a report to the corporation that includes all of the following:

AB38,4,23 a. A detailed statement of the association's grant receipts and expenditures for the fiscal year.

AB38,5,3 b. A detailed statement of manufacturing sales generated by the association for eligible businesses as a result of the manufacturer marketing assistance program established under this section.

AB38,5,4 c. Any other information the corporation considers relevant.

AB38,5,6 (5) (a) The corporation shall annually review the manufacturer marketing assistance program under this section.

AB38,5,11 (b) The corporation may cancel the manufacturer marketing assistance program at any time after the program is established under sub. (2) (a). If the corporation cancels the program under this paragraph, the corporation may disburse any moneys held in the account under sub. (2) (b) for use in the corporation's other economic development programs.

AB38,5,12 (End)