AB56: Bill Text

AB56,1870 Section 1870. 238.07 (1) of the statutes is amended to read:

AB56,954,11 238.07 (1) Annually, by January October 1, the board shall submit to the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2), a report identifying the economic development projects that the board intends to develop and implement during the current calendar fiscal year.

AB56,1871 Section 1871. 238.07 (2) (ag) of the statutes is amended to read:

AB56,954,16 238.07 (2) (ag) An accounting of the location, by municipality, of each job created or retained in the state in the previous fiscal year as a result of the program if the job meets the criteria for receiving a grant, loan award, or tax credit under the program.

AB56,1872 Section 1872. 238.07 (2) (ar) of the statutes is amended to read:

AB56,954,20 238.07 (2) (ar) An accounting of the industry classification, by municipality, of each job created or retained in the state as a result of the program if the job meets the criteria for receiving a grant, loan award, or tax credit under the program.

AB56,1873 Section 1873. 238.08 of the statutes is renumbered 238.08 (1) and amended to read:

AB56,955,3 238.08 (1) All records of the corporation are open to the public as provided in s. 19.35 (1) except those records relating to pending grants, loans, or economic development projects that, in the opinion of the corporation, must remain confidential to protect the competitive nature of the grant, loan, or project and except records received from the department of revenue pursuant to an agreement under s. 71.78 (5).

AB56,1874 Section 1874. 238.08 (2) of the statutes is created to read:

AB56,955,10 238.08 (2) The corporation shall maintain on its Internet site a searchable, electronic database that allows any person to inspect all final contracts, including final amendments to these contracts, under which the corporation agrees to provide a grant, loan, or tax benefit. The corporation shall add a final contract or final amendment to the database no later than 30 days after the contract or amendment is executed.

AB56,1875 Section 1875 . 238.095 of the statutes is created to read:

AB56,955,14 238.095 Contract requirements. (1) All terms of each contract the corporation executes shall, at the time the contract is executed, be in compliance with all applicable state laws and all applicable corporation policies and procedures.

AB56,955,19 (2) Prior to executing a contract with a person for the award of a grant, loan, or tax credit, the corporation shall establish, through payroll records or other business records the corporation determines are sufficient, the number of full-time employees employed by the person for the purpose of accounting for each full-time job created or retained during the course of the contract.

AB56,955,25 (3) Each contract the corporation executes with a person for the award of a grant, loan, or tax credit shall require the person to submit to the corporation payroll records, or other business records the corporation determines are sufficient, to verify the number of full-time jobs created or retained during the course of the contract. The corporation shall adopt policies and procedures establishing standards to verify the business records and full-time job data.

AB56,1876 Section 1876. 238.097 of the statutes is created to read:

AB56,956,7 238.097 Underwriting staff review. The corporation may not enter into a contract with a person for the award of a grant, loan, or tax credit before the corporation's underwriting staff completes a review of the person's application for the grant, loan, or tax credit, including an evaluation of all statutory requirements and all requirements under the corporation's policies and procedures that apply to the grant, loan, or tax credit.

AB56,1877 Section 1877 . 238.105 of the statutes is created to read:

AB56,956,16 238.105 Job elimination or relocation. (1) Each recipient of a grant, loan, or tax credit under this chapter shall report to the corporation each full-time job in this state that the recipient eliminates or relocates outside this state within 7 business days after the job is eliminated or relocated and shall describe in detail the circumstances of that job elimination or relocation. If extenuating circumstances make it impossible for the recipient to submit the report within 7 business days, the recipient may submit the report within 30 days after the full-time job is eliminated or relocated.

AB56,956,19 (2) A recipient of a grant, loan, or tax credit under this chapter may not use the grant, loan, or tax credit to reduce net employment in this state or relocate jobs outside this state.

AB56,1878 Section 1878. 238.115 (1) (f) of the statutes is amended to read:

AB56,956,24 238.115 (1) (f) The amount of tax credits the corporation determined each person identified under par. (e) was eligible to claim that, if already claimed that, must be repaid by the person as the result of a the revocation for each person identified under par. (e).

AB56,1879 Section 1879. 238.116 of the statutes is created to read:

AB56,957,5 238.116 Reporting of material changes in contracts for tax benefits. (1) Each contract the corporation executes with a taxpayer under which the taxpayer may be eligible to claim tax benefits in excess of $5,000,000 during the term of the contract shall include a requirement that the taxpayer promptly notify the corporation of all of the following:

AB56,957,6 (a) Each material change to a project subject to the contract.

AB56,957,10 (b) All effects of each material change under par. (a) on the contract's performance goals or requirements, including job retention, creation, or training and capital expenditures, and any effect on the timing of the taxpayer's achievement of the performance goals or requirements.

AB56,957,15 (2) The corporation shall notify the joint committee on finance of any material change for which the corporation receives notice under sub. (1) and, for any contract under which a taxpayer may be eligible to claim tax benefits in excess of $5,000,000 during the term of the contract, of any material change due to an amendment to the contract.

AB56,1880 Section 1880. 238.117 of the statutes is created to read:

AB56,957,20 238.117 Repayment of tax credits. No later than 7 days after the corporation receives a repayment of tax credits under this chapter, the corporation shall remit the full amount of that payment to the secretary of administration for deposit in the general fund.

AB56,1881 Section 1881. 238.135 of the statutes is amended to read:

AB56,958,3 238.135 Grants to regional economic development organizations. The corporation shall award annual grants to regional economic development organizations to fund economic development activities, including marketing activities. The total amount of grants awarded each year shall be at least $1,000,000. The amount of each a grant to fund marketing activities may not exceed $100,000 or the amount of matching funds the organization obtains from sources other than the corporation or the state, whichever is less.

AB56,1882 Section 1882. 238.17 (1) of the statutes is renumbered 238.17 (1) (a) and amended to read:

AB56,958,11 238.17 (1) (a) For Except as provided in par. (b), for taxable years beginning after December 31, 2013, the corporation may certify a person to claim a tax credit under s. 71.07 (9m), 71.28 (6), or 71.47 (6), if the corporation determines that the person is conducting an eligible activity under s. 71.07 (9m), 71.28 (6), or 71.47 (6). No person may claim a tax credit under s. 71.07 (9m), 71.28 (6), or 71.47 (6) without first being certified under this subsection.

AB56,1883 Section 1883. 238.17 (1) (b) of the statutes is created to read:

AB56,958,15 238.17 (1) (b) The corporation may not certify a person to claim a tax credit under s. 71.07 (9m) (a) 3., 71.28 (6) (a) 3., or 71.47 (6) (a) 3. for taxable years beginning after December 31, 2018.

AB56,1884 Section 1884. 238.17 (2) of the statutes is amended to read:

AB56,958,22 238.17 (2) Beginning July 1, 2018, and ending on June 30, 2019, the corporation may not certify persons to claim more than a total of $3,500,000 in tax credits for all projects undertaken on the same parcel. Beginning July 1, 2019, the corporation may not certify persons to claim more than a total of $3,500,000 in tax credits for any project, regardless of the number of parcels on which the project is undertaken.

AB56,1885 Section 1885. 238.30 (4m) of the statutes is amended to read:

AB56,959,11 238.30 (4m) “Member of a targeted group" means a person who resides in an area designated by the federal government as an economic revitalization area, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin Works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), 2011 stats., or in a trial employment match program job subsidized employment placement, as defined in s. 49.141 (1) (n) (Lm), a person who is eligible for child care assistance under s. 49.155, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp recipient, if the person has been certified in the manner under 26 USC 51 (d) (13) (A) by a designated local agency, as defined in 26 USC 51 (d) (12).

AB56,1886 Section 1886. 238.306 (3) of the statutes is repealed.

AB56,1887 Section 1887. 238.308 (4) (a) 4m. of the statutes is created to read:

AB56,959,22 238.308 (4) (a) 4m. In addition to any tax benefit awarded under subd. 4., an amount equal to up to 5 percent of the person's real property investment in a capital investment project, if the project satisfies subd. 4. and if the investment is made for purposes of energy efficiency or the generation of energy from renewable resources. The corporation shall include in any contract for the award of tax benefits under this subdivision a requirement that the recipient of the tax benefits provide documentation to the corporation verifying all expenditures under this subdivision and showing the energy efficiency or renewable energy impacts of those expenditures.

AB56,1888 Section 1888. 238.399 (3) (a) of the statutes is amended to read:

AB56,959,25 238.399 (3) (a) The corporation may designate any number of enterprise zones in this state not more than 35 enterprise zones.

AB56,1889 Section 1889. 238.399 (3) (am) of the statutes is repealed.

AB56,1890 Section 1890. 238.399 (3) (e) of the statutes is created to read:

AB56,960,7 238.399 (3) (e) If the corporation revokes all certifications for tax benefits within a designated enterprise zone, the corporation may cancel the designation of that enterprise zone. After canceling the designation of an enterprise zone, the corporation may designate a new enterprise zone subject to the limits of this subsection.

AB56,1891 Section 1891. 250.048 of the statutes is created to read:

AB56,960,14 250.048 Prescription drug importation program. (1) Importation program requirements. The department, in consultation with persons interested in the sale and pricing of prescription drugs and appropriate officials and agencies of the federal government, shall design and implement a prescription drug importation program for the benefit of residents of this state, that generates savings for residents, and that satisfies all of the following:

AB56,960,17 (a) The department shall designate a state agency to become a licensed wholesale distributor or to contract with a licensed wholesale distributor and shall seek federal certification and approval to import prescription drugs.

AB56,960,20 (b) The prescription drug importation program under this section shall comply with relevant requirements of 21 USC 384, including safety and cost savings requirements.

AB56,960,23 (c) The prescription drug importation program under this section shall import prescription drugs from Canadian suppliers regulated under any appropriate Canadian or provincial laws.

AB56,961,3 (d) The prescription drug importation program under this section shall have a process to sample the purity, chemical composition, and potency of imported prescription drugs.

AB56,961,7 (e) The prescription drug importation program under this section shall import only those prescription drugs for which importation creates substantial savings for residents of the state and only those prescription drugs that are not brand-name drugs and that have fewer than 4 competitor prescription drugs in the United States.

AB56,961,10 (f) The department shall ensure that prescription drugs imported under the program under this section are not distributed, dispensed, or sold outside of the state.

AB56,961,12 (g) The prescription drug importation program under this section shall ensure all of the following:

AB56,961,14 1. Participation by any pharmacy or health care provider in the program is voluntary.

AB56,961,16 2. Any pharmacy or health care provider participating in the program has the appropriate license or other credential in this state.

AB56,961,19 3. Any pharmacy or health care provider participating in the program charges a consumer or health plan the actual acquisition cost of the imported prescription drug that is dispensed.

AB56,961,23 (h) The prescription drug importation program under this section shall ensure that a payment by a health plan or health insurance policy for a prescription drug imported under the program reimburses no more than the actual acquisition cost of the imported prescription drug that is dispensed.

AB56,962,3 (i) The prescription drug importation program under this section shall ensure that any health plan or health insurance policy participating in the program does all of the following:

AB56,962,5 1. Maintains a formulary and claims payment system with current information on prescription drugs imported under the program.

AB56,962,8 2. Bases cost-sharing amounts for participants or insureds under the plan or policy on no more than the actual acquisition cost of the prescription drug imported under the program that is dispensed to the participant or insured.

AB56,962,11 3. Demonstrates to the department or a state agency designated by the department how premiums under the policy or plan are affected by savings on prescription drugs imported under the program.

AB56,962,14 (j) Any wholesale distributor importing prescription drugs under the program under this section shall limit its profit margin to the amount established by the department or a state agency designated by the department.

AB56,962,17 (k) The prescription drug importation program under this section may not import any generic prescription drug that would violate federal patent laws on branded products in this country.

AB56,962,22 (L) The prescription drug importation program under this section shall comply to the extent practical and feasible before the prescription drug to be imported comes into possession of the state's wholesale distributor and fully after the prescription drug to be imported is in possession of the state's wholesale distributor with tracking and tracing requirements of 21 USC 360eee to 360eee-1.

AB56,962,25 (m) The prescription drug importation program under this section shall establish a fee or other approach to finance the program that does not jeopardize significant savings to residents of the state.

AB56,963,2 (n) The prescription drug importation program under this section shall have an audit function that ensures all of the following:

AB56,963,5 1. The department has a sound methodology to determine the most cost-effective prescription drugs to include in the importation program under this section.

AB56,963,7 2. The department has a process in place to select Canadian suppliers that are high quality, high performing, and in full compliance with Canadian laws.

AB56,963,9 3. Prescription drugs imported under the program are pure, unadulterated, potent, and safe.

AB56,963,11 4. The prescription drug importation program is complying with the requirements of this subsection.

AB56,963,14 5. The prescription drug importation program under this section is adequately financed to support administrative functions of the program while generating significant cost savings to residents of the state.

AB56,963,16 6. The prescription drug importation program under this section does not put residents of the state at a higher risk than if the program did not exist.

AB56,963,18 7. The prescription drug importation program under this section provides and is projected to continue to provide substantial cost savings to residents of the state.

AB56,963,21 (2) Anticompetitive behavior. The department, in consultation with the attorney general, shall identify the potential for and monitor anticompetitive behavior in industries affected by a prescription drug importation program.

AB56,964,7 (3) Approval of program design; certification. No later than the first day of the 7th month beginning after the effective date of this subsection .... [LRB inserts date], the department shall submit to the joint committee on finance a report that includes the design of the prescription drug importation program in accordance with this section. The department may not submit the proposed prescription drug importation program to the federal department of health and human services unless the joint committee on finance approves the proposed prescription drug implementation program. Within 14 days of the date of approval by the joint committee on finance of the proposed prescription drug importation program, the department shall submit to the federal department of health and human services a request for certification of the approved prescription drug importation program.

AB56,964,15 (4) Implementation of certified program. After the federal department of health and human services certifies the prescription drug importation program submitted under sub. (3), the department shall begin implementation of the program and the program shall be fully operational by 180 days after the date of certification by the federal department of health and human services. The department shall do all of the following to implement the prescription drug importation program to the extent the action is in accordance with other state laws and the certification by the federal department of health and human services:

AB56,964,18 (a) Become a licensed wholesale distributor, designate another state agency to become a licensed wholesale distributor, or contract with a licensed wholesale distributor.

AB56,964,20 (b) Contract with one or more Canadian suppliers that meet the criteria in sub. (1) (c).

AB56,964,24 (c) Create an outreach and marketing plan to communicate with and provide information to health plans and health insurance policies, employers, pharmacies, health care providers, and residents of the state on participating in the prescription drug importation program.

AB56,965,3 (d) Develop and implement a registration process for health plans and health insurance policies, pharmacies, and health care providers interested in participating in the prescription drug importation program.

AB56,965,5 (e) Create a publicly accessible source for listing prices of prescription drugs imported under the program.

AB56,965,8 (f) Create, publicize, and implement a method of communication to promptly answer questions from and address the needs of persons affected by the implementation of the program before the program is fully operational.

AB56,965,10 (g) Establish the audit functions under sub. (1) (n) with a timeline to complete each audit function every 2 years.

AB56,965,13 (h) Conduct any other activities determined by the department to be important to successful implementation of the prescription drug importation program under this section.

AB56,965,15 (5) Report. By January 1 and July 1 of each year, the department shall submit to the joint committee on finance a report including all of the following: