SB293: Bill Text

2013 - 2014 LEGISLATURE

2013 Senate BILL 293

September 10, 2013 - Introduced by Senators Lasee and Hansen, cosponsored by Representatives Weininger, Born, Jacque, Kahl, Kleefisch, Klenke, Knodl, Genrich, Mursau, Nygren and A. Ott. Referred to Committee on Economic Development and Local Government.

SB293,1,4 An Act to amend 238.30 (7) (b) 2., 238.395 (3) (a) 4., 238.395 (3) (b) (intro.) and 238.395 (3) (b) 8.; and to create 109.07 (1m) (bm) and 238.395 (6) of the statutes; relating to: development opportunity zones for areas experiencing mass layoffs or business closings.

Analysis by the Legislative Reference Bureau

Current law designates certain areas in the state, usually confined to a city, as development opportunity zones. Taxpayers that conduct business or intend to conduct business in a development opportunity zone may receive certain tax credits after submitting a qualifying project plan to the Wisconsin Economic Development Corporation (WEDC).

This bill authorizes WEDC to designate as a development opportunity zone an area in a county in this state that experiences a mass layoff or business closing. Under the bill, the mass layoff or business closing must affect at least 25 percent of the employer's workforce or 100 employees, whichever is greater, at an employment site or within a county, not including new or low-hour employees. The bill also authorizes WEDC to reallocate unallocated tax credits from the existing development opportunity zones in the cities of Janesville, Kenosha, and Beloit for use in a development opportunity zone that WEDC designates in connection with a mass layoff or business closing.

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:

SB293,1 Section 1. 109.07 (1m) (bm) of the statutes is created to read:

SB293,2,3 109.07 (1m) (bm) The department shall promptly provide a copy of the notice required under par. (a) to the Wisconsin Economic Development Corporation.

SB293,2 Section 2. 238.30 (7) (b) 2. of the statutes is amended to read:

SB293,2,8 238.30 (7) (b) 2. With respect to the development opportunity zones under s. 238.395 (1) (g), (h), and (i) and (6), "tax benefits" means the development zone credits under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636 and the development zones capital investment credit under ss. 71.07 (2dm), 71.28 (1dm), and 71.47 (1dm).

SB293,3 Section 3. 238.395 (3) (a) 4. of the statutes is amended to read:

SB293,2,17 238.395 (3) (a) 4. Any person that is conducting or that intends to conduct economic activity in a development opportunity zone under sub. (1) (e), (f), (g), (h), or (i) and that, in conjunction with the local governing body of the city in which the development opportunity zone is located, submits a project plan as described in par. (b) to the corporation, and any person to whom the corporation reallocates tax benefits under sub. (6) (c) 1. for economic activity conducted in a development opportunity zone designated under sub. (6) (b), shall be entitled to claim tax benefits while the area is designated as a development opportunity zone.

SB293,4 Section 4. 238.395 (3) (b) (intro.) of the statutes is amended to read:

SB293,2,20 238.395 (3) (b) (intro.) A project plan under par. (a), or under sub. (6) (c) 2., shall include all of the following:

SB293,5 Section 5. 238.395 (3) (b) 8. of the statutes is amended to read:

SB293,3,4 238.395 (3) (b) 8. A description of the commitment of the local governing body of the city in which the development opportunity zone is located, or the county board of the county in which a development opportunity zone is located under sub. (6), to the person's project.

SB293,6 Section 6. 238.395 (6) of the statutes is created to read:

SB293,3,7 238.395 (6) Development opportunity zone in a county experiencing a mass layoff or business closing. (a) In this subsection:

SB293,3,12 1. "Business closing" means a permanent or temporary shutdown of an employment site or of one or more facilities or operating units at an employment site or within a single county that affects at least 25 percent of the employer's workforce or 100 employees, whichever is greater, not including new or low-hour employees as defined in s. 109.07 (1) (h).

SB293,3,17 2. "Mass layoff" means a reduction in an employer's workforce that is not the result of a business closing and that affects at least 25 percent of the employer's workforce or 100 employees, whichever is greater, at an employment site or within a single county, not including new or low-hour employees, as defined in s. 109.07 (1) (h).

SB293,3,21 (b) The corporation may designate as a development opportunity zone under this section an area, the legal description of which is provided to the corporation by the county board of the affected county, in a county in which a mass layoff or business closing occurs.

SB293,4,2 (c) 1. The corporation may reallocate any tax benefits not allocated under sub. (3) (a) 4. for economic activity in a development opportunity zone under sub. (1) (g), (h), and (i) to a person that qualifies for tax benefits under subd. 2. If the corporation reallocates tax benefits to a person under this subdivision, that person shall be entitled to claim tax benefits under sub. (3) (a) 4. while the area is designated as a development opportunity zone.

SB293,4,7 2. A person qualifies for a reallocation of tax benefits under subd. 1. if the person is conducting or intends to conduct economic activity in a development opportunity zone designated by the corporation under par. (b) and, in conjunction with the county board of the county in which the development opportunity zone is located, submits a project plan as described in sub. (3) (b) to the corporation.

SB293,4,11 (d) The designation of an area as a development opportunity zone under this subsection may not extend beyond the period of the designation of a development opportunity zone under sub. (1) (g), (h), or (i), whichever is later, including any extension under sub. (2) (e).

SB293,4,12 (End)