Amendment SA2-SB440

LRBa1351/1

MES&CTS:nwn&bjk:rs

2009 - 2010 LEGISLATURE

SENATE AMENDMENT 2, TO 2009 SENATE BILL 440

January 25, 2010 - Offered by Senators Lassa and Darling.

SB440-SA2,1,1 At the locations indicated, amend the bill as follows:

SB440-SA2,1,3 1. Page 1, line 2: before "waiving" insert "granting authority to any county to issue industrial development revenue bonds and".

SB440-SA2,1,4 2. Page 3, line 6: after that line insert:

SB440-SA2,1,5 " Section 1e. 66.1103 (1) (a) of the statutes is amended to read:

SB440-SA2,2,18 66.1103 (1) (a) It is found and declared that industries located in this state have been induced to move their operations in whole or in part to, or to expand their operations in, other states to the detriment of state, county and municipal revenue raising through the loss or reduction of income and franchise taxes, real estate and other local taxes causing an increase in unemployment; that such conditions now exist in certain areas of the state and may well arise in other areas; that economic insecurity due to unemployment is a serious menace to the general welfare of not only the people of the affected areas but of the people of the entire state; that unemployment results in obligations to grant public assistance and in the payment of unemployment insurance; that the absence of new economic opportunities has caused workers and their families to migrate elsewhere to find work and establish homes, which has resulted in a reduction of the tax base of counties, cities and other local governmental jurisdictions impairing their financial ability to support education and other local governmental services; that security against unemployment and the preservation and enhancement of the tax base can best be provided by the promotion, attraction, stimulation, rehabilitation and revitalization of commerce, industry and manufacturing; and that there is a need to stimulate a larger flow of private investment funds from banks, investment houses, insurance companies and other financial institutions. It is therefore the policy of this state to promote the right to gainful employment, business opportunities and general welfare of its inhabitants and to preserve and enhance the tax base by authorizing municipalities and counties to acquire industrial buildings and to finance the acquisition through the issuance of revenue bonds for the purpose of fulfilling the aims of this section. These purposes are declared to be public purposes for which public money may be spent and the necessity in the public interest for the provisions of this section is declared a matter of legislative determination.

SB440-SA2, s. 1f Section 1f. 66.1103 (1) (c) of the statutes is amended to read:

SB440-SA2,2,23 66.1103 (1) (c) It is found and declared that the revitalization of counties and of the central business districts of the municipalities of this state is necessary to retain existing industry in, and attract new industry to, this state and to protect the health, welfare and safety of residents of this state.

SB440-SA2, s. 1g Section 1g. 66.1103 (2) (a) of the statutes is amended to read:

SB440-SA2,3,5 66.1103 (2) (a) "Authorized developer" means a corporation organized under ch. 180 or 181 which the governing body designates as an authorized developer after making a finding that the principal purpose of the corporation is the general promotion of business development in the municipality or county or in the local area containing the municipality or county.

SB440-SA2, s. 1h Section 1h. 66.1103 (2) (as) of the statutes is created to read:

SB440-SA2,3,7 66.1103 (2) (as) "County" means any county in this state.

SB440-SA2, s. 1i Section 1i. 66.1103 (2) (c) of the statutes is amended to read:

SB440-SA2,3,14 66.1103 (2) (c) "Eligible participant" includes any person, other than the state or any other governmental unit, who enters into a revenue agreement with a municipality or county with respect to an industrial project. If more than one eligible participant is a party to a revenue agreement, the undertaking of each shall be either several or joint and several as the revenue agreement provides. An eligible participant need not be directly or indirectly a user of the project.

SB440-SA2, s. 1j Section 1j. 66.1103 (2) (e) of the statutes is amended to read:

SB440-SA2,3,17 66.1103 (2) (e) "Governing body" means the board, council or other body in which the legislative powers of the municipality or county are vested.".

SB440-SA2,3,18 3. Page 3, line 11: after that line insert:

SB440-SA2,3,19 " Section 2ae. 66.1103 (2) (L) of the statutes is amended to read:

SB440-SA2,4,2 66.1103 (2) (L) "Revenue agreement" includes any lease, sublease, installment or direct sales contract, service contract, take or pay contract, loan agreement or similar agreement providing that an eligible participant agrees to pay the municipality or county an amount of funds sufficient to provide for the prompt payment of the principal of, and interest on, the revenue bonds and agrees to construct the project.

SB440-SA2, s. 2am Section 2am. 66.1103 (3) (intro.) of the statutes is amended to read:

SB440-SA2,4,4 66.1103 (3) Powers. (intro.) A municipality or county may:

SB440-SA2, s. 2as Section 2as. 66.1103 (3) (b) 2. of the statutes is amended to read:

SB440-SA2,4,8 66.1103 (3) (b) 2. To fund the whole or part of any revenue bonds issued by the municipality or county, including any premium payable with respect to the bonds and any interest accrued or to accrue on the bonds; or

SB440-SA2, s. 2bm Section 2bm. 66.1103 (3) (f) of the statutes is amended to read:

SB440-SA2,4,19 66.1103 (3) (f) Finance an industrial project which is located entirely within the geographic limits of the municipality or county or some contiguous part of which is located within and some contiguous part outside the geographic limits of the municipality or county; or, finance an industrial project which is located entirely outside the geographic limits of the municipality or county, but only if the revenue agreement for the project also relates to another project of the same eligible participant, part of which is located within the geographic limits of the municipality or county. The power granted by this paragraph does not include the power to annex, tax, zone or exercise any other municipal or county power with respect to that part of the project located outside of the geographic limits of the municipality or county.

SB440-SA2, s. 2c Section 2c. 66.1103 (4) (a) (intro.) of the statutes is amended to read:

SB440-SA2,5,9 66.1103 (4) (a) (intro.) Bonds issued by a municipality or county under this section are limited obligations of the municipality or county. The principal of and interest on the bonds are payable solely out of the revenues derived under the revenue agreement pertaining to the project to be financed by the bonds, or, if there is a default of the agreement and to the extent that the municipality or county provides in the proceedings of the governing body authorizing the bonds to be issued, out of any revenues derived from the sale, releasing or other disposition of the project, or out of any collateral securing the revenue agreement, or out of the proceeds of the sale of bonds. Bonds and interest coupons issued under this section are not an indebtedness of the municipality or county, within the meaning of any state constitutional provision or statutory limitation. Bonds and interest coupons issued under this section are not a charge against the municipality's or county's general credit or taxing powers or a pecuniary liability of the municipality or county or a redevelopment authority under s. 66.1333, including but not limited to:

SB440-SA2, s. 2cm Section 2cm. 66.1103 (4) (a) 2. of the statutes is amended to read:

SB440-SA2,5,15 66.1103 (4) (a) 2. Any liability in connection with the issuance or sale of bonds, for representations made, or for the performance of the obligation of any person who is a party to a related transaction or agreement except as specifically provided in this section or by an express provision of the bond or a related written agreement to which the municipality or county is a party.

SB440-SA2, s. 2d Section 2d. 66.1103 (4) (d) of the statutes is amended to read:

SB440-SA2,5,21 66.1103 (4) (d) Unless otherwise expressly or implicitly provided in the proceedings of the governing body authorizing the bonds to be issued, bonds issued under this section are subject to the general provisions of law, not inconsistent with this section, respecting the authorization, execution and delivery of the bonds of the municipality or county.

SB440-SA2, s. 2dm Section 2dm. 66.1103 (4) (e) of the statutes is amended to read:

SB440-SA2,6,2 66.1103 (4) (e) Bonds issued under this section may be sold at public or private sale in the manner, at the price and at the time determined by the governing body. The municipality or county may pay all expenses, premiums and commissions which the governing body considers necessary or advantageous in connection with the authorization, sale and issuance of the bonds.

SB440-SA2, s. 2e Section 2e. 66.1103 (4m) (a) of the statutes is amended to read:

SB440-SA2,6,5 66.1103 (4m) (a) A municipality or county may not enter into a revenue agreement with any person unless all of the following apply:

SB440-SA2,6,9 1. The person, at least 30 days prior to entering into the revenue agreement, has given a notice of intent to enter into the agreement, on a form prescribed under s. 560.034 (1), to the department of commerce and to any collective bargaining agent in this state with whom the person has a collective bargaining agreement ; and.

SB440-SA2,6,15 2. The municipality or county has received an estimate issued under s. 560.034 (5) (a), and the department of commerce has estimated whether the project which the municipality or county would finance under the revenue agreement is expected to eliminate, create or maintain jobs on the project site and elsewhere in this state and the net number of jobs expected to be eliminated, created or maintained as a result of the project.

SB440-SA2, s. 2em Section 2em. 66.1103 (4m) (b) of the statutes is amended to read:

SB440-SA2,6,23 66.1103 (4m) (b) Any revenue agreement which an eligible participant enters into with a municipality or county to finance a project shall require the eligible participant to submit to the department of commerce within 12 months after the project is completed or 2 years after a revenue bond is issued to finance the project, whichever is sooner, on a form prescribed under s. 560.034 (1), the net number of jobs eliminated, created or maintained on the project site and elsewhere in this state as a result of the project.

SB440-SA2, s. 2f Section 2f. 66.1103 (4m) (c) of the statutes is amended to read:

SB440-SA2,7,3 66.1103 (4m) (c) Nothing in this subsection requires a person with whom a municipality or county has entered into a revenue agreement to satisfy an estimate under par. (a) 2.

SB440-SA2, s. 2fm Section 2fm. 66.1103 (4s) (b) (intro.) of the statutes is amended to read:

SB440-SA2,7,8 66.1103 (4s) (b) (intro.) A municipality or county may not enter into a revenue agreement with any employer that employs individuals in this state at a site other than a project site unless the employer certifies that the project is not expected to result in any lost jobs or the employer agrees to all of the following:

SB440-SA2, s. 2g Section 2g. 66.1103 (4s) (b) 3. of the statutes is amended to read:

SB440-SA2,7,14 66.1103 (4s) (b) 3. The employer shall certify compliance with this subsection to the department, to the governing body of each municipality or county within which a lost job exists and to any collective bargaining agent in this state with which the employer has a collective bargaining agreement at the project site or at a site where a lost job exists.

SB440-SA2, s. 2gm Section 2gm. 66.1103 (5) (c) of the statutes is amended to read:

SB440-SA2,8,8 66.1103 (5) (c) A municipality or county may provide that proceeds from the sale of bonds and special funds from the revenues of the project and any funds held in reserve or debt service funds shall be invested and reinvested in securities and other investments as provided in the proceedings under which the bonds are authorized to be issued. The municipality or county may also provide that the proceeds or funds or investments and the revenues derived pursuant to the revenue agreement shall be received, held and disbursed by one or more banks or trust companies located in or out of this state. A municipality or county may also provide that the project and improvements shall be constructed or installed by the municipality or county, the eligible participant or the eligible participant's designee or any one or more of them on real estate owned by the municipality or county, the eligible participant or the eligible participant's designee and that the bond proceeds shall be disbursed by the trustee bank or trust company during construction upon the estimate, order or certificate of the eligible participant or the eligible participant's designee. In making agreements or provisions under this paragraph, a municipality or county may not obligate itself, except with respect to the project and the application of the revenues from the project, and may not incur a pecuniary liability or a charge upon its general credit or against its taxing powers.