SB62: Bill Text

SB62,323,16 428.202 (9) "Loan Mortgage loan originator" has the meaning given in s. 224.71 (1r) (6).

SB62, s. 785 Section 785. 428.203 (9) (title) of the statutes is amended to read:

SB62,323,18 428.203 (9) (title) Unregistered Unlicensed mortgage bankers and brokers.

SB62, s. 786 Section 786. 428.204 of the statutes is amended to read:

SB62,323,23 428.204 False statements. No lender, licensed lender, mortgage loan originator, mortgage banker, or mortgage broker may knowingly make, propose, or solicit fraudulent, false, or misleading statements on any document relating to a covered loan.

SB62, s. 787 Section 787. 428.206 of the statutes is amended to read:

SB62,324,5 428.206 Recommending default. No lender, licensed lender, mortgage loan originator, mortgage banker, or mortgage broker may recommend or encourage an individual to default on an existing loan or other obligation before and in connection with the making of a covered loan that refinances all or any portion of that existing loan or obligation.

SB62, s. 788 Section 788. 452.01 (3) (g) of the statutes is amended to read:

SB62,324,8 452.01 (3) (g) A person registered licensed as a mortgage banker under s. 224.72 who does not engage in activities described under sub. (2).

SB62, s. 789 Section 789. 560.205 (1) (intro.) of the statutes is amended to read:

SB62,324,18 560.205 (1) Angel investment tax credits. (intro.) The department shall implement a program to certify businesses for purposes of s. 71.07 (5d). A business desiring certification shall submit an application to the department in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the department may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). Unless otherwise provided under the rules of the department, a business may be certified under this subsection, and may maintain such certification, only if the business satisfies all of the following conditions:

SB62, s. 790 Section 790. 560.205 (1) (f) of the statutes is repealed and recreated to read:

SB62,324,21 560.205 (1) (f) It has the potential for increasing jobs in this state, increasing capital investment in this state, or both, and any of the following apply:

SB62,324,23 1. It is engaged in, or has committed to engage in, innovation in any of the following:

SB62,324,25 a. Manufacturing, biotechnology, nanotechnology, communications, agriculture, or clean energy creation or storage technology.

SB62,325,4 b. Processing or assembling products, including medical devices, pharmaceuticals, computer software, computer hardware, semiconductors, any other innovative technology products, or other products that are produced using manufacturing methods that are enabled by applying proprietary technology.

SB62,325,5 c. Services that are enabled by applying proprietary technology.

SB62,325,9 2. It is undertaking pre-commercialization activity related to proprietary technology that includes conducting research, developing a new product or business process, or developing a service that is principally reliant on applying proprietary technology.

SB62, s. 791 Section 791. 560.205 (1) (g) of the statutes is amended to read:

SB62,325,16 560.205 (1) (g) It is not primarily engaged in real estate development, insurance, banking, lending, lobbying, political consulting, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail trade, leisure, hospitality, transportation, or construction, except construction of power production plants that derive energy from a renewable resource, as defined in s. 196.378 (1) (h).

SB62, s. 792 Section 792. 560.205 (1) (k) of the statutes is amended to read:

SB62,325,20 560.205 (1) (k) It For taxable years beginning before January 1, 2008, it has not received more than $1,000,000 in investments that have qualified for tax credits under s. 71.07 (5d).

SB62, s. 793 Section 793. 560.205 (1) (kn) of the statutes is created to read:

SB62,325,25 560.205 (1) (kn) For taxable years beginning after December 31, 2007 and before January 1, 2011, it has not received more than $4,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.

SB62, s. 794 Section 794. 560.205 (1) (L) of the statutes is created to read:

SB62,326,4 560.205 (1) (L) For taxable years beginning after December 31, 2010, it has not received more than $8,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.

SB62, s. 795 Section 795. 560.205 (2) of the statutes is amended to read:

SB62,326,19 560.205 (2) Early stage seed investment tax credits. The department shall implement a program to certify investment fund managers for purposes of ss. 71.07 (5b), 71.28 (5b), and, 71.47 (5b), and 76.638. An investment fund manager desiring certification shall submit an application to the department. The investment fund manager shall specify in the application the investment amount that the manager wishes to raise and the department may certify the manager and determine the amount that qualifies for purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. In determining whether to certify an investment fund manager, the department shall consider the investment fund manager's experience in managing venture capital funds, the past performance of investment funds managed by the applicant, the expected level of investment in the investment fund to be managed by the applicant, and any other relevant factors. The department may certify only investment fund managers that commit to consider placing investments in businesses certified under sub. (1).

SB62, s. 796 Section 796. 560.205 (3) (d) of the statutes is amended to read:

SB62,327,19 560.205 (3) (d) Rules. The department of commerce, in consultation with the department of revenue, shall promulgate rules to administer this section. The rules shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) at $3,000,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $5,500,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2011, and $18,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), and 71.47 (5b), and 76.638 that may be claimed for investments paid to fund managers certified under sub. (2) at $3,500,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar years beginning after December 31, 2007 , and before January 1, 2011, and $18,500,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also provide that, for calendar years beginning after December 31, 2007, no person may receive a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), or 71.47 (5b), or 76.638 unless the person's investment is kept in a certified business, or with a certified fund manager, for no less than 3 years.

SB62, s. 797 Section 797. 560.205 (3) (e) of the statutes is created to read:

SB62,328,7 560.205 (3) (e) Transfer. A person who is eligible to claim a credit under s. 71.07 (5b), 71.28 (5b), 71.47 (5b), or 76.638 may sell or otherwise transfer the credit to another person who is subject to the taxes or fees imposed under s. 71.02, 71.23, 71.47, or subch. III of ch. 76, if the person receives prior authorization from the investment fund manager and the manager then notifies the department of commerce and the department of revenue of the transfer and submits with the notification a copy of the transfer documents. No person may sell or otherwise transfer a credit as provided in this paragraph more than once in a 12-month period. The department may charge any person selling or otherwise transferring a credit under this paragraph a fee equal to 1 percent of the credit amount sold or transferred. The department shall deposit all fees collected under this paragraph in the appropriation account under s. 20.143 (1) (gm).

SB62, s. 798 Section 798. 560.207 (1) of the statutes is amended to read:

SB62,328,12 560.207 (1) The department of commerce shall implement a program to certify taxpayers, including taxpayers who are members of dairy cooperatives, as eligible for the dairy manufacturing facility investment credit under ss. 71.07 (3p), 71.28 (3p), and 71.47 (3p).

SB62, s. 799 Section 799. 560.207 (2) of the statutes is amended to read:

SB62,328,25 560.207 (2) If the department of commerce certifies a taxpayer under sub. (1), the department of commerce shall determine the amount of credits to allocate to that taxpayer. The total amount of dairy manufacturing facility investment credits allocated to taxpayers in fiscal year 2007-08 may not exceed $600,000 and the total amount of dairy manufacturing facility investment credits allocated to taxpayers who are not members of dairy cooperatives in fiscal year 2008-09, and in each fiscal year thereafter, may not exceed $700,000. The total amount of dairy manufacturing facility investment credits allocated to taxpayers who are members of dairy cooperatives in fiscal year 2009-10 may not exceed $600,000 and the total amount of dairy manufacturing facility investment credits allocated to taxpayers who are members of dairy cooperatives in fiscal year 2010-11, and in each fiscal year thereafter, may not exceed $700,000.

SB62, s. 800 Section 800. 560.208 of the statutes is created to read:

SB62,329,4 560.208 Meat processing facility investment credit. (1) The department of commerce shall implement a program to certify taxpayers as eligible for the meat processing facility investment credit under ss. 71.07 (3r), 71.28 (3r), and 71.47 (3r).

SB62,329,10 (2) If the department of commerce certifies a taxpayer under sub. (1), the department of commerce shall determine the amount of credits to allocate to that taxpayer. The total amount of meat processing facility investment credits allocated to taxpayers in fiscal year 2009-10 may not exceed $300,000 and the total amount of meat processing facility investment credits allocated to taxpayers in fiscal year 2010-11, and in each fiscal year thereafter, may not exceed $700,000.

SB62,329,13 (3) The department of commerce shall inform the department of revenue of every taxpayer certified under sub. (1) and the amount of credits allocated to the taxpayer.

SB62,329,15 (4) The department of commerce, in consultation with the department of revenue, shall promulgate rules to administer this section.

SB62, s. 801 Section 801. 560.605 (2m) (g) of the statutes is repealed.

SB62, s. 802 Section 802. 560.605 (7) (e) of the statutes is repealed.

SB62, s. 803 Section 803. Subchapter VI (title) of chapter 560 [precedes 560.70] of the statutes is repealed and recreated to read:

SB62,329,20 CHAPTER 560

SB62,329,23 SUBCHAPTER VI Tax incentives for business development in Wisconsin

SB62, s. 804 Section 804. 560.70 (2g) of the statutes is created to read:

SB62,329,25 560.70 (2g) "Eligible activity" means an activity described under s. 560.702.

SB62, s. 805 Section 805. 560.70 (2m) of the statutes is renumbered 560.70 (2m) (a) and amended to read:

SB62,330,9 560.70 (2m) (a) "Full Except as provided in par. (b), "full-time job" means a regular, nonseasonal full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150% of the federal minimum wage and benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins.

SB62, s. 806 Section 806. 560.70 (2m) (b) of the statutes is created to read:

SB62,330,16 560.70 (2m) (b) The department may by rule specify circumstances under which the department may grant exceptions to the requirement under par. (a) that a full-time job means a job in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, but under no circumstances may a full-time job mean a job in which an individual, as a condition of employment, is required to work less than 37.5 hours per week.

SB62, s. 807 Section 807. 560.70 (4m) of the statutes is created to read:

SB62,331,4 560.70 (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), or in a real work, real pay project position under s. 49.147 (3m), 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).

SB62, s. 808 Section 808. 560.70 (7) (a) of the statutes is amended to read:

SB62,331,8 560.70 (7) (a) Except as provided in pars. (b) and, (c), and (d), "tax benefits" means the development zones credit under ss. 71.07 (2dx), 71.28 (1dx), 71.47 (1dx), and 76.636.

SB62, s. 809 Section 809. 560.70 (7) (d) of the statutes is created to read:

SB62,331,11 560.70 (7) (d) In ss. 560.701 to 560.706, "tax benefits" means the economic development tax credit under ss. 71.07 (2dy), 71.28 (1dy), 71.47 (1dy), and 76.637.

SB62, s. 810 Section 810. 560.701 of the statutes is created to read:

SB62,331,15 560.701 Certification for tax benefits. (1) Application. Any person may apply to the department on a form prepared by the department for certification under this section. The application shall include all of the following:

SB62,331,16 (a) The name and address of the person.

SB62,331,17 (b) The federal tax identification number of the person.

SB62,331,19 (c) The names and addresses of the locations where the person conducts business and a description of the business activities conducted at those locations.

SB62,331,21 (d) A description of each eligible activity conducted or proposed to be conducted by the person.

SB62,331,23 (e) Other information required by the department or the department of revenue.

SB62,332,2 (2) Certification. (a) The department may certify a person who submits an application under sub. (1) if, after conducting an investigation, the department determines that the person is conducting or intends to conduct at least one eligible activity.

SB62,332,4 (b) The department shall provide a person certified under this section and the department of revenue with a copy of the certification.

SB62,332,7 (3) Contract. A person certified under this section shall enter into a written contract with the department. The contract shall include provisions that detail all of the following:

SB62,332,9 (a) A description of each eligible activity being conducted or proposed to be conducted by the person.

SB62,332,11 (b) Whether any of the eligible activities will occur in an economically distressed area, as designated by the department under s. 560.704 (1).

SB62,332,13 (c) Whether any of the eligible activities will benefit members of a targeted group, as determined by the department under s. 560.704 (2).

SB62,332,16 (d) A compliance schedule that includes a sequence of anticipated actions to be taken or goals to be achieved by the person before the person may receive tax benefits under s. 560.703.

SB62,332,17 (e) The reporting requirements with which the person must comply.

SB62,332,19 (f) If feasible, a determination of the tax benefits the person will be authorized to claim under s. 560.703 (2) if the person fulfills the terms of the contract.

SB62, s. 811 Section 811. 560.702 of the statutes is created to read:

SB62,332,22 560.702 Eligible activities. A person who conducts or proposes to conduct any of the following may be certified under s. 560.701 (2):

SB62,332,25 (1) Job creation project. A project that creates and maintains for a period of time established by the department by rule full-time jobs in addition to any existing full-time jobs provided by the person.

SB62,333,4 (2) Capital investment project. A project that involves a significant investment of capital, as defined by the department by rule under s. 560.706 (2) (b), by the person in new equipment, machinery, real property, or depreciable personal property.

SB62,333,8 (3) Employee training project. A project that involves significant investments in the training or reeducation of employees, as defined by the department by rule under s. 560.706 (2) (c), by the person for the purpose of improving the productivity or competitiveness of the business of the person.

SB62,333,13 (4) Project related to persons with corporate headquarters in Wisconsin. A project that will result in the location or retention of a person's corporate headquarters in Wisconsin or that will result in the retention of employees holding full-time jobs in Wisconsin if the person's corporate headquarters are located in Wisconsin.

SB62, s. 812 Section 812. 560.703 of the statutes is created to read:

SB62,333,19 560.703 Limits on tax benefits and claiming tax benefits. (1) Limits. (a) Except as provided in par. (b), the total tax benefits available to be allocated by the department under ss. 560.701 to 560.706 may not exceed the sum of the tax benefits remaining to be allocated under ss. 560.71 to 560.785, 560.797, 560.798, 560.7995, and 560.96 on the effective date of this paragraph .... [LRB inserts date].

SB62,333,25 (b) The department may submit to the joint committee on finance a request in writing to exceed the total tax benefits specified in par. (a). The department shall submit with its request a justification for seeking an increase under this paragraph. The joint committee on finance, following its review, may approve or disapprove an increase in the total tax benefits available to be allocated under ss. 560.701 to 560.706.

SB62,334,5 (2) Authority to claim tax benefits. The department may authorize a person certified under s. 560.701 (2) to claim tax benefits only after the person has submitted a report to the department that documents to the satisfaction of the department that the person has complied with the terms of the contract under s. 560.701 (3) and the requirements of any applicable rules promulgated under s. 560.706 (2).

SB62,334,8 (3) Notice of eligibility. The department shall provide to the person and to the department of revenue a notice of eligibility to receive tax benefits that reports the amount of tax benefits for which the person is eligible.

SB62, s. 813 Section 813. 560.704 of the statutes is created to read:

SB62,334,14 560.704 Eligible activities in economically distressed areas and benefiting members of targeted groups. The department may authorize a person certified under s. 560.701 (2) to claim additional tax benefits under s. 560.703 if, after conducting an investigation, the department determines any of the following:

SB62,334,18 (1) The person conducts at least one eligible activity in an area designated by the department as economically distressed. In designating an area as economically distressed under this subsection, the department shall follow the methodology established by rule under s. 560.706 (2) (e).

SB62,334,21 (2) The person conducts at least one eligible activity that benefits, creates, retains, or significantly upgrades full-time jobs for, that trains, or that reeducates, members of a targeted group.