AU7 AB1: Bill Text

Under federal law, activities involving the discharge of dredged or fill material into “navigable waters” must comply with certain guidelines contained in regulations promulgated by the federal Environmental Protection Agency in order for a discharge permit to be issued by the U.S. Army Corps of Engineers (ACE). Before ACE may issue a permit, the Department of Natural Resources must determine that the project complies with state water quality standards, including those for wetlands (water quality certification). Federal law defines “navigable waters” to be “the waters of the United States.” Generally, courts have interpreted “the waters of the United States” to exclude nonnavigable, isolated, intrastate waters (nonfederal wetlands).

Under current state law, subject to exceptions, no person may discharge dredged material or fill material into a federal or nonfederal wetland unless the discharge is authorized by a wetland general permit or individual permit, or the discharge is exempt from permitting requirements. Current law requires DNR to issue wetland general permits for discharges of dredged or fill material into certain federal and nonfederal wetlands. For a discharge into a wetland that is not authorized under a wetland general permit, current law requires a person to apply for and obtain a wetland individual permit. Before DNR may issue a wetland individual permit, it must require the restoration, enhancement, creation, or preservation of other wetlands to compensate for adverse impacts to a wetland resulting from the discharge, also known as mitigation. Under current law, a wetland general or individual permit issued by DNR constitutes water quality certification.

Under this bill, a person may, without a permit, discharge dredged material or fill material into a nonfederal wetland that is located in an electronics and information technology manufacturing zone if the discharge is related to the construction, access, or operation of a new manufacturing facility that is also located in the zone. With respect to a federal wetland located in an electronics and information technology manufacturing zone, the bill provides that no state permit is required and that the state waives water quality certification. Under the bill, a federal permit for such a discharge is still required. The bill requires any adverse impacts to functional values of federal or nonfederal wetlands in an electronics and information technology manufacturing zone to be compensated at a ratio of two acres per each acre impacted through the purchase of credits from a mitigation bank, participation in the in lieu fee subprogram or escrow subprogram administered by DNR, or completion of mitigation within this state. Under current law, the general minimum ratio is 1.2 acres for each acre affected by the discharge.

Under current law, subject to exceptions, no person may do any of the following without a permit issued by DNR: 1) deposit any material or place any structure upon the bed of any navigable water where no bulkhead line has been established or beyond a lawfully established bulkhead line; 2) construct or maintain a bridge or construct, place, or maintain a culvert in, on, or over navigable waters; 3) construct, dredge, or enlarge any artificial water body that connects with an existing navigable waterway; 4) construct or enlarge any part of an artificial water body that is or will be located within 500 feet of the ordinary high-water mark of, but that does not or will not connect with, an existing navigable waterway; 5) grade or remove topsoil from the bank of any navigable waterway where the area exposed by the grading or removal will exceed 10,000 square feet; and 6) change the course of or straighten a navigable stream.

Under the bill, DNR generally may not require a permit for any of these activities if they relate to the construction, access, or operation of a new manufacturing facility located in an electronics and information technology manufacturing zone. However, the bill provides that DNR may require a permit for the construction or maintenance of bridges and the construction or placement and maintenance of culverts if DNR determines that conditions specific to the site require restrictions in order to prevent significant adverse impacts to the public rights and interests, environmental pollution, or material injury to the riparian rights of any riparian owner.

Public Service Commission certificates and market-based rates

This bill exempts public utility projects within an electronics and information technology manufacturing zone from obtaining a certificate of authority from the Public Service Commission, which current law generally requires for construction, improvement, and other projects of public utilities. The bill also exempts transmission line relocations within such a zone from obtaining a certificate of public convenience and necessity from the PSC, which current law generally requires before beginning construction of high-voltage transmission lines and associated facilities.

The bill also requires an electric public utility that provides service to an electronics and information technology manufacturing zone to file tariffs with the PSC for market-based pricing and options for new retail customers within the zone. The bill requires the tariffs to be filed no later than January 1, 2020. The bill specifies requirements that must be included in the tariffs and requires the PSC to approve rates that are consistent with those requirements.

Grants to local governments

This bill authorizes the Department of Administration to make grants to local governmental units for costs associated with development in an electronics and information technology manufacturing zone, including costs related to infrastructure and public safety. DOA may require a local governmental unit to match a grant in whole or in part.

Contingent highway bonding authorization

This bill authorizes the state to contract up to $252,400,000 in general obligation public debt for the I 94 north-south corridor project. The Department of Transportation, however, may not expend the proceeds of these bonds unless the state receives an award of federal moneys for the project.

Design-build construction

This bill authorizes a city or village in which an electronics and information technology manufacturing zone is located to contract for the acquisition of water and sewer systems, and wastewater treatment facilities, using the design-build system. Under this system, the city or village invites developers to submit proposals to provide completed projects in these areas without following the bidding requirements for public works projects that would otherwise apply. Current law authorizes the use of this system by any city, village, or county for the acquisition of recycling or resource recovery facilities.

Enterprise zones

Under current law, WEDC may designate areas within the state as “enterprise zones.” WEDC may certify a business in an enterprise zone to receive income and franchise tax credits if the business creates or retains jobs in the enterprise zone, subject to several limitations. The bill makes the following changes to the enterprise zone tax credit program:

1. Authorizes WEDC to increase from 30 to 35 the number of designated enterprise zones.

2. Authorizes WEDC to cancel the designation of an enterprise zone if WEDC revokes all certifications for tax credits within the zone. WEDC may designate a new enterprise zone if it cancels an existing zone designation.

3. Authorizes WEDC to designate a new enterprise zone if an existing enterprise zone expires. Under current law, an enterprise zone designation expires after 12 years.

4. Authorizes WEDC to certify for enterprise zone tax credits a financial services technology business that, after completing a competitive corporate relocation process, retains its corporate headquarters and at least 93 percent of its full-time employees, as determined by WEDC, in Wisconsin.

Economic development liaison

This bill requires the secretary of administration to appoint an economic development liaison in the unclassified service of the state civil service to perform economic development–related services.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

For further information see the state and local 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:

AB1,1 Section 1 . 16.004 (23) of the statutes is created to read:

AB1,7,3 16.004 (23) Economic development liaison. The secretary shall appoint an economic development liaison to perform services related to economic development.

AB1,2 Section 2 . 16.297 of the statutes is created to read:

AB1,7,11 16.297 Grants for local government expenditures; moral obligation pledge. (1) Grants. From the appropriation under s. 20.505 (1) (fr), the department may make one or more grants to a local governmental unit for the local governmental unit's expenditures for costs the department determines are associated with development occurring in an electronics and information technology manufacturing zone designated under s. 238.396 (1m), including costs related to infrastructure and public safety.

AB1,7,14 (2) Match. The department may require a local governmental unit to match in whole or in part a grant the department makes to the local governmental unit under sub. (1).

AB1,8,4 (3) Moral obligation pledge. Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if ever called upon to do so, it shall make an appropriation to pay up to 40 percent of the principal and interest of a local governmental unit's obligations, if all of the following apply:

AB1,8,7 (a) The local governmental unit's obligation is issued to finance costs related to development occurring in or for the benefit of an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1,8,9 (b) The secretary approves the local governmental unit's obligation before it is issued.

AB1,8,11 (4) Agreement. The secretary may contract with a local governmental unit to implement this section.

AB1,3 Section 3 . 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB1,4 Section 4 . 20.395 (6) (ad) of the statutes is created to read:

AB1,9,2 20.395 (6) (ad) Principal repayment and interest, contingent funding of southeast Wisconsin freeway megaprojects, state funds. From the general fund, a sum sufficient to reimburse s. 20.866 (1) (u) for the payment of principal and interest costs incurred in financing southeast Wisconsin freeway megaprojects, as provided under ss. 20.866 (2) (uuz) and 84.585 and 2017 Wisconsin Act .... (this act), section 60 (1), and to make payments under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a).

AB1,5 Section 5 . 20.505 (1) (fr) of the statutes is created to read:

AB1,9,6 20.505 (1) (fr) Grants for local government expenditures. As a continuing appropriation, the amounts in the schedule for grants to local governmental units under s. 16.297.

AB1,6 Section 6. 20.835 (2) (cp) of the statutes is created to read:

AB1,9,10 20.835 (2) (cp) Electronics and information technology manufacturing zone credit. A sum sufficient to make the payments under ss. 71.07 (3wm) (d) 2. and 71.28 (3wm) (d) 2.

AB1,7 Section 7 . 20.866 (2) (uuz) of the statutes is created to read:

AB1,9,17 20.866 (2) (uuz) Transportation; southeast Wisconsin freeway megaprojects subject to contingency. From the capital improvement fund, a sum sufficient for the department of transportation to fund southeast Wisconsin freeway megaprojects as provided under s. 84.585. Subject to 2017 Wisconsin Act .... (this act), section 60 (1), the state may contract public debt in an amount not to exceed $252,400,000 for these purposes.

AB1,8 Section 8 . 20.923 (4) (c) 2m. of the statutes is created to read:

AB1,9,20 20.923 (4) (c) 2m. Administration, department of: economic development liaison.

AB1,9 Section 9 . 30.12 (1g) (m) of the statutes is created to read:

AB1,9,25 30.12 (1g) (m) A structure or deposit that is related to the construction, access, or operation of a new manufacturing facility in a navigable stream located in an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1,10 Section 10. 30.123 (6) (f) of the statutes is created to read:

AB1,10,6 30.123 (6) (f) The construction or maintenance of bridges and the construction or placement and maintenance of culverts that are required for the construction, access, or operation of a new manufacturing facility and that affect a portion of a navigable stream within an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1,11 Section 11 . 30.123 (6m) (intro.) of the statutes is amended to read:

AB1,10,13 30.123 (6m) Permits in lieu of exemptions. (intro.) The department may decide to require that a person engaged in an activity that is exempt under sub. (6) (d) or (f) apply for an individual permit or seek authorization under a general permit if the department has conducted an investigation and visited the site of the activity and has determined that conditions specific to the site require restrictions on the activity in order to prevent any of the following:

AB1,12 Section 12 . 30.19 (1m) (h) of the statutes is created to read:

AB1,10,18 30.19 (1m) (h) Any activity that affects a portion of a navigable stream and that is required for the construction, access, and operation of a new manufacturing facility within an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1,13 Section 13 . 30.195 (7) of the statutes is renumbered 30.195 (7) (intro.) and amended to read:

AB1,10,22 30.195 (7) Application of section. (intro.) This section does not apply to municipal any of the following:

AB1,10,24 (a) Municipal or county-owned lands in counties having a population of 750,000 or more.

AB1,14 Section 14 . 30.195 (7) (b) of the statutes is created to read:

AB1,11,3 30.195 (7) (b) Activity related to the construction, access, or operation of a new manufacturing facility located in an electronics and information technology manufacturing zone designated under s. 238.396 (1m).

AB1,15 Section 15 . 61.57 of the statutes is renumbered 61.57 (intro.) and amended to read:

AB1,11,11 61.57 Acquisition of recycling or resource recovery facilities without bids. (intro.) A village may contract for the acquisition of any element of a recycling or resource recovery facility the following without submitting the contract for bids as required under s. 61.54 if the village invites developers to submit proposals to provide a completed project and evaluates proposals according to site, cost, design and the developers' experience in other similar projects. :

AB1,16 Section 16 . 61.57 (1) and (2) of the statutes are created to read:

AB1,11,13 61.57 (1) A recycling or resource recovery facility.

AB1,11,15 (2) If the village contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m):

AB1,11,16 (a) Water and sewer systems.

AB1,11,17 (b) Wastewater treatment facilities.

AB1,17 Section 17 . 62.155 of the statutes is renumbered 62.155 (intro.) and amended to read:

AB1,11,25 62.155 Acquisition of recycling or resource recovery facilities without bids. (intro.) A city may contract for the acquisition of any element of a recycling or resource recovery facility the following without submitting the contract for bids as required under s. 62.15 if the city invites developers to submit proposals to provide a completed project and evaluates proposals according to site, cost, design and the developers' experience in other similar projects. :

AB1,18 Section 18. 62.155 (1) and (2) of the statutes are created to read:

AB1,12,2 62.155 (1) A recycling or resource recovery facility.

AB1,12,4 (2) If the city contains an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m):

AB1,12,5 (a) Water and sewer systems.

AB1,12,6 (b) Wastewater treatment facilities.

AB1,19 Section 19. 66.1105 (2) (f) 1. (intro.) of the statutes is amended to read:

AB1,12,25 66.1105 (2) (f) 1. (intro.) “Project costs" mean any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city which are listed in a project plan as costs of public works or improvements within a tax incremental district or, to the extent provided in this subd. 1. (intro.) or subds. 1. k., 1. m., and 1. n., or sub. (20) (c), without the district, plus any incidental costs, diminished by any income, special assessments, or other revenues, including user fees or charges, other than tax increments, received or reasonably expected to be received by the city in connection with the implementation of the plan. For any tax incremental district for which a project plan is approved on or after July 31, 1981, only a proportionate share of the costs permitted under this subdivision may be included as project costs to the extent that they benefit the tax incremental district, except that expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by a 1st class city, to fund parking facilities ancillary to and within one mile from public entertainment facilities, including a sports and entertainment arena, shall be considered to benefit any tax incremental district located in whole or in part within a one-mile radius of such parking facilities. To the extent the costs benefit the municipality outside the tax incremental district, a proportionate share of the cost is not a project cost. “Project costs" include:

AB1,20 Section 20. 66.1105 (4) (gm) 4. c. of the statutes is amended to read:

AB1,13,13 66.1105 (4) (gm) 4. c. Except as provided in subs. (10) (c), (16) (d), (17), and (18) (c) 3., and (20) (b), the equalized value of taxable property of the district plus the value increment of all existing districts does not exceed 12 percent of the total equalized value of taxable property within the city. In determining the equalized value of taxable property under this subd. 4. c. or sub. (17) (c), the department of revenue shall base its calculations on the most recent equalized value of taxable property of the district that is reported under s. 70.57 (1m) before the date on which the resolution under this paragraph is adopted. If the department of revenue determines that a local legislative body exceeds the 12 percent limit described in this subd. 4. c. or sub. (17) (c), the department shall notify the city of its noncompliance, in writing, not later than December 31 of the year in which the department receives the completed application or amendment forms described in sub. (5) (b).

AB1,21 Section 21. 66.1105 (20) of the statutes is created to read:

AB1,13,20 66.1105 (20) Districts within an electronics and information technology manufacturing zone. (a) Creation. With regard to a tax incremental district that is created in an electronics and information technology manufacturing zone that is designated under s. 238.396 (1m), the district may only be a district that is suitable for industrial sites or mixed-use development, as described in sub. (4) (gm) 4. a., and all of the following apply:

AB1,14,2 1. Notwithstanding the dates specified in sub. (4) (gm) 2., if the resolution described under sub. (4) (gm) is adopted during the period between January 1 and December 1, the creation date shall be either the January 1 of the year in which the resolution is adopted or the next subsequent January 1, as specified by the local legislative body in the resolution. If a resolution is adopted during the period between December 2 and December 31, the creation date shall be the next subsequent January 1.

AB1,14,5 2. Notwithstanding the October 31 deadline for the city clerk's submission of the forms described in sub. (5) (b), the city clerk shall complete and submit the required forms for a tax incremental district described in this subsection either:

AB1,14,9 a. On or before December 31 of the year the resolution under subd. 1. is adopted if the resolution is adopted between January 1 and December 1, and the resolution specifies that the district's creation date is January 1 of the year in which the resolution is adopted.

AB1,14,14 b. On or after the next subsequent April 1 and before the next subsequent December 1 of the year the resolution under subd. 1. is adopted if the resolution is adopted between January 1 and December 1 and the resolution specifies that the district's creation date is the next subsequent January 1 or the resolution is adopted between December 2 and December 31.

AB1,14,18 (b) Exception to the 12 percent limit. Notwithstanding the 12 percent limit findings requirement described under sub. (4) (gm) 4. c., the equalized value of taxable property of a tax incremental district described under this subsection does not count in the calculation of the 12 percent limit.

AB1,14,21 (c) Expenditures. With regard to a tax incremental district described under this subsection, the creating city may incur project costs for any territory that is located in the same county as the district, provided that the expenditure benefits the district.

AB1,14,25 (d) Allocation of positive increments. Notwithstanding the 20-year limit for allocating positive tax increments described in sub. (6) (a) 7., for a tax incremental district described under this subsection, that limit shall be 30 years for purposes of sub. (6) (a) 7.

AB1,15,3 (e) Termination. Notwithstanding the 20-year termination requirement specified in sub. (7) (am) 2., for a tax incremental district described under this subsection, that limit shall be 30 years for purposes of sub. (7) (am) 2.

AB1,22 Section 22. 71.05 (6) (a) 15. of the statutes is amended to read: