560.147(2)(a)2.
2. The purchase of land, an existing building, machinery or equipment.
560.147(2)(b)
(b) The purpose of the renovation, purchase or construction under
par. (a) must be to foster economic development in the area of the project.
560.147(3)
(3) Report on use of proceeds. A person receiving a loan under this section shall submit to the department, within 6 months after spending the full amount of the loan, a report detailing how the loan proceeds were used.
560.147(4)
(4) Limit on loans. The department may not award in a fiscal biennium more than $2,000,000 in loans under this section.
560.147(5)
(5) Deposit of repayments. The department shall deposit in the appropriation account under
s. 20.143 (1) (ie) all moneys received in repayment of loans under this section.
560.147 History
History: 1997 a. 237.
560.15
560.15
Economic adjustment program. 560.15(1)
(1) The department, with the advice and assistance of the community response committees created under
sub. (3), and in cooperation with the department of workforce development, shall perform the responsibilities under
sub. (2) if the following conditions are met:
560.15(1)(a)
(a) A business, regardless of its size or form of organization, is considering ceasing its operations or has decided to cease its operations or has ceased its operations at any place of business located in this state; is considering laying off or has decided to lay off or has laid off, whether permanently or temporarily, any of its employes at any place of business located in this state.
560.15(1)(b)
(b) The department has received notification of an act by a business under
par. (a) from any of the following:
560.15(1)(b)4.
4. An employe of the business or a former employe laid off by an act under
par. (a).
560.15(1)(b)6.
6. A small business development center of the university of Wisconsin system.
560.15(1)(b)7.
7. A faculty member of the university of Wisconsin-extension.
560.15(1)(b)8.
8. An economic development coordinator of a technical college.
560.15(2)
(2) Upon notification of an act by a business under
sub. (1), the department shall provide assistance, or provide referrals to other persons or arrange and coordinate assistance from other persons, including federal, state or local governmental units, agencies or programs, other businesses, service organizations, educational institutions and financial institutions, to the following persons for the following purposes and upon the following conditions:
560.15(2)(a)
(a) A business which has performed an act under
sub. (1) (a), for the purpose of enabling continued or renewed operation of the business or avoiding or rescinding temporary or permanent layoffs, if the business requests or chooses to accept the assistance of the department.
560.15(2)(b)
(b) One or more employes of a business, or former employes laid off by an act under
sub. (1) (a), if the business has performed an act under
sub. (1) (a), for the purpose of retraining the employes or former employes, matching their skills with jobs for other employers or accomplishing the transfer of ownership, control or management of a business which has decided to or has ceased operations to employes or former employes, members of the community or others, if one or more employes or former employes request or choose to accept the assistance of the department.
560.15(2)(c)
(c) A business or one or more employes of a business or former employes laid off by an act under
sub. (1) (a), if the business has performed an act under
sub. (1) (a), for any of the purposes set forth in
pars. (a) and
(b), if the business and one or more employes or former employes request or choose to accept the assistance of the department.
560.15(2)(d)
(d) A business or one or more former employes of a business laid off by an act under
sub. (1) (a) or one or more employes of a business, if the business has performed an act under
sub. (1) (a), for the purpose of informing the business, former employes or employes of their rights and opportunities under
s. 560.16.
560.15(3)(a)(a) If a business, or one or more employes of a business or former employes laid off by an act under
sub. (1) (a), request or accept assistance under
sub. (2), the department shall send written notice thereof to the chief executive officer of the village, town or city where the business has or had its place of business.
560.15(3)(b)
(b) A chief executive officer receiving notification under
par. (a), after consultation with the business affected, may create a community response committee which shall consist of the following members to be appointed by and serve at the pleasure of the chief executive officer:
560.15(3)(b)1.
1. A representative from the business if the business requests or accepts assistance under
sub. (2).
560.15(3)(b)2.
2. A representative from the employes of the business or former employes laid off by an act under
sub. (1) (a), if one or more employes or former employes request or accept assistance under
sub. (2).
560.15(3)(b)3.
3. A representative from the village, town, city or county where the business has or had its place of business.
560.15(3)(b)4.
4. A representative from a local economic development organization.
560.15(3)(c)
(c) A committee created under
par. (b) may appoint additional members to serve at the pleasure of the committee, or may otherwise request assistance from any persons, including representatives from any of the following:
560.15(3)(c)2.
2. A local campus of the university of Wisconsin system.
560.15(3)(c)3.
3. A county office of the university of Wisconsin-extension.
560.15(3)(c)5.
5. A regional small business development center of the university of Wisconsin system.
560.15(3)(c)6.
6. A district office of the department of workforce development.
560.15(3)(d)
(d) Each community response committee shall advise and assist the department in the performance of its responsibilities under this section.
560.15(4)
(4) All records received or created for the purposes of this section shall be closed to public inspection if the department, a chief executive officer of a village, town or city or a community response committee determines that public inspection of the records could adversely affect the business, its employes or former employes.
560.15(5)
(5) Each employe of the department, and each member of the community response committee, and each chief executive officer of a village, town or city and employes of his or her office shall keep secret all facts and information obtained in the course of performing their responsibilities under this section. This subsection does not prohibit the public inspection of records to the extent permitted under
sub. (4) nor meetings in open session to the extent permitted under
s. 19.85 (1) (i).
560.16
560.16
Employe ownership assistance grants. 560.16(1)(a)
(a) "Board" means the development finance board.
560.16(1)(b)
(b) "Business" means an employe-owned business or an existing business which is the subject of an application for a grant under this section.
560.16(1)(c)
(c) "Employe-owned business" means a business located in this state which is organized in a manner determined by the secretary to involve substantial employe participation or a cooperative organized under
ch. 185 or a corporation in which the employes own the stock of the corporation through an employe stock ownership plan as defined under
26 USC 4975 (e) (7) and in which:
560.16(1)(c)1.
1. A majority of the voting rights are held by employes and any employe who has stock allocated to the employe is entitled to vote;
560.16(1)(c)2.
2. Shares are voted in such a manner that the vote of the majority of employes controls the vote of the majority of shares;
560.16(1)(c)3.
3. Voting rights on corporate matters for shares held in a trust for the employes shall pass through to those employes, at least to the extent required by the pass-through voting requirements under
26 USC 409A (e); and
560.16(1)(c)4.
4. The majority of the members of the board of directors are elected by the employes.
560.16(1)(e)
(e) "Existing business" means the assets of any business that is located in this state and that is operating or has ceased operating.
560.16(1)(f)
(f) "Existing business group" means a group formed by or on behalf of the current or former employes of an existing business that is considering layoffs or a closing or that has experienced layoffs or a closing for the purpose of determining the feasibility of assuming ownership or control of the existing business and operating it as an employe-owned business.
560.16(1)(h)
(h) "Professional services" includes, but is not limited to, accounting services, engineering studies, design assistance, architectural services, appraisal services, marketing assistance, attorney services, financial packaging and employe relations services.
560.16(2)
(2) Employe ownership assistance grants. 560.16(2)(a)(a) From the appropriations under
s. 20.143 (1) (c) and
(ie), the department may make grants to existing business groups for a feasibility study to investigate the reorganization or new incorporation of an existing business as an employe-owned business and for professional services to implement the study.
560.16(2)(b)
(b) The department may not make a grant under this section unless the board has approved the grant under this section or requested the department to make the grant under
s. 560.61 (3).
560.16(2)(c)
(c) The board may not approve a grant under this section unless the board has considered all of the following:
560.16(2)(c)1.
1. The number of employes affected by the considered or actual closing or layoff by the business.
560.16(2)(c)3.
3. The economic impact of the considered or actual closing or layoff by the business on the community, region or state.
560.16(2)(c)4.
4. A preliminary assessment of the viability of the employe-owned business or proposed employe-owned business and, in the case of a proposed employe-owned business, the potential for a successful buy out by the group.
560.16(2)(d)
(d) The board may approve a grant regardless of the number of employes laid off or to be laid off by the business or, if the business is closed, the length of time that it has been closed.
560.16(3)
(3) Grant applications. To apply for a grant under this section, a group shall submit an application to the department which includes:
560.16(3)(a)
(a) A general analysis outlining the need for a feasibility study or professional services under
sub. (2) (a), including, but not limited to, such items as the number of employes affected, the economic impact on the community of a business closing and a preliminary analysis as to the feasibility of undertaking employe ownership of the business and the potential for a successful buy out by the group.
560.16(3)(b)
(b) A petition in support of the effort signed by at least a majority of the members of the group and a list of the names and addresses of all the members of the group.
560.16(3)(c)
(c) A letter from a majority of the owners of the business indicating a preference to sell the business to the group if the study concludes that reorganization or new incorporation of the business that is the subject of the study as an employe-owned business is feasible. A group need not include a letter under this paragraph if the business is involved in bankruptcy or insolvency proceedings.
560.16(3)(d)
(d) The estimated cost and time required to conduct the feasibility study or provide the service.
560.16(3)(e)
(e) A description of the group's financial assets available to match the grant and a statement indicating the group's willingness to match the grant.
560.16(3)(f)
(f) A written commitment from a person with the recognized expertise and experience necessary to conduct the feasibility study or provide the professional services to be financed by the grant.
560.16(4)
(4) Grant limits; contract approval. 560.16(4)(a)(a) A grant to a group under this section may not exceed $15,000.
560.16(4)(b)
(b) As a condition of approval of a grant to a group under this section, the board shall require that the group provide matching funds for at least 25% of the cost of the project, except that the board may waive application of that requirement if the board determines that the group is subject to extreme financial hardship.
560.16(4)(c)
(c) Any contract for any feasibility study or professional services financed by a grant under
sub. (2) (a) shall be subject to the approval of the department. The department may not approve such a contract unless it determines that the contractor has the expertise required to provide the necessary study or services and that the contractor's costs are consistent with existing market rates.
560.16(6)(a)(a) Any feasibility study of an existing business financed by a grant under
sub. (2) (a) may include:
560.16(6)(a)1.
1. An assessment of the market value and demand for any product produced by the existing business.
560.16(6)(a)2.
2. A complete evaluation of the production costs of the existing business, including, but not limited to, labor, inventory, machinery and equipment, and the application of new technology.
560.16(6)(a)3.
3. A verified statement of the financial condition and business operation of the existing business for the previous 3 years, certified by an independent public accountant.
560.16(6)(a)4.
4. A full narrative appraisal of the fair market value of the assets of the existing business by a disinterested and qualified appraiser using all 3 commonly accepted appraisal methods.
560.16(6)(a)5.
5. A comprehensive projected business plan of the proposed employe-owned business, including the proposed organizational structure and ownership arrangements.
560.16(6)(a)6.
6. The number and type of jobs to be created or preserved by the proposed employe-owned business at its start-up and for each of the 3 subsequent years.
560.16(6)(a)7.
7. An analysis of the reasons for the closing or considered closing of the existing business.
560.16(6)(a)8.
8. A plan for implementing the feasibility study, if the study concludes that reorganization or new incorporation of the existing business as an employe-owned business is feasible.
560.16(6)(b)
(b) The results of a feasibility study of an existing business financed by a grant under
sub. (2) (a) shall be solely for the use of the group which received the grant, except that if the group's bid to purchase the business has been withdrawn, rejected or terminated, the group shall submit a copy of the study and the results of any professional services financed by the grant to the board and the board may provide a copy of such results to any person seeking to purchase the existing business.
560.165
560.165
Division of international and export development; fees. The division of international and export development may charge fees for services it provides to cover the costs incurred by the division in providing the services. The division shall deposit all fees collected under this section in the appropriation account under
s. 20.143 (1) (g).
560.165 History
History: 1997 a. 27.
560.167
560.167
Wisconsin trade project program.
