•Provides additional emphasis on transportation under the Wisconsin Works
(W-2) program by expanding eligibility for W-2 transportation, requiring the
establishment of local W-2 transportation advisory committees and requiring W-2
agencies to account for their W-2 related transportation expenditures.

•Permits the department of workforce development (DWD) to establish an
advanced journeyworker credential pilot program.

•Modifies a number of provisions of state law relating to brownfields and
environmental remediation tax incremental finance districts.

The provisions of the bill are more fully explained below.

---

Job Retention Skills Development Program

This bill requires each technical college district board to make available to all
employers in the district a job retention skills development program to assist employers
to retain new employes, build the job skill levels of those employes and assist those
employes to attain higher wages and long-term careers. To the extent practicable, the
program must be provided at employment sites.

The program must emphasize job retention skills development for employes with
incomes at or below 200% of the federal poverty line who are current or former recipients
of public assistance, employes in the first six months of employment with their employer
and entry-level employes.

In supervising and establishing minimum requirements for the program, the state
technical college system (board) must consult with employers, technical college district
boards, W-2 agencies, local units of government and labor organizations. The program
must include elements relating to the skills needed to show up for work on time, to work
effectively in a team, to communicate with supervisors and coworkers and to solve basic
job-related personal and interpersonal problems.

The bill requires the board, in consultation with employers, district boards and
DWD, to develop standards to assess the job retention and skills competencies of
participants before and after participation in the program. The program sunsets on
December 31, 2004.

Further, the bill requires technical college district boards to assist employers in
providing ongoing job retention skills development and reinforcement activities in the
work place. The bill also allows district boards to charge employers a fee for the program
and services offered to employers. Under the bill, $200,000 of federal temporary
assistance for needy families block grant funds is used to implement the program.

Finally, the bill requires W-2 agencies to coordinate case management services
that are provided to W-2 participants in unsubsidized employment with the job retention
skills development program. [Sections 7, 8 , 12 and 49 (2 ).]

Productivity Enhancement Training Expense Tax Credit

This bill provides a nonrefundable business tax credit for expenses incurred by a
business to provide certain training to the business's employes. The credit equals 100%
of the business's certified training expenses, up to a maximum of $7,500 per year. Eligible
training expenses include up to $2,000 incurred for pre-training assessment and
consultation services. The credit may not be claimed for amounts deducted by the
business under the Internal Revenue Code as ordinary and necessary business expenses.
Unused credits may be carried forward for up to 15 years. Under the bill, sole
proprietorships, corporations and insurers may claim the credit. Partnerships, limited
liability companies and tax option corporations compute the credit but pass it on to the
partners, members and shareholders in proportion to their ownership interests.

The purpose of the credit is to encourage businesses to provide training to their
employes to improve productivity and to promote, and provide workers for, high-skill and
high-wage jobs.

To qualify for the credit, the department of commerce must certify the business's
productivity enhancement training expenses. To be eligible to have its expenses certified,
the business must submit to the department of commerce a productivity enhancement
training plan designed to: (1) increase employe productivity; and (2) result in employes
holding jobs in the business that require higher degrees of skill to perform and that pay
higher wages than their current jobs. In addition, the business must receive pre-training
needs assessment and consultation from an experienced provider of productivity

---

assessments, as approved by the department of commerce. Finally, the business must
submit an accounting of its productivity enhancement training expenses so that the
department of commerce may determine if the expenses were incurred under the training
plan.

Each business that has its expenses certified and that claims the tax credit must
report to the department of commerce, by March 1 of the year the business receives the
certification, on the results of its productivity enhancement training and on its success
in meeting the goals established in its productivity enhancement training plan. The
department is required to report to the legislature by December 1 annually on the
effectiveness of the program.

The tax credit is available for taxable years beginning on or after January 1, 2000.
No business may be certified for tax credits for any taxable year beginning after
December 31, 2008. [Sections 15 to 20, 24 to 30, 44 and 50 (2 ).]

Applied Technology Centers

Under current law, as created by 1999 Wisconsin Act 9, technical college district
boards may expend up to $5,000,000 for the purchase or construction of facilities to be
used as applied technology centers without approval of voters in a referendum. To do so,
the district board must adopt a resolution and gain the approval of the technical college
system board. The approval process must be developed by the technical college system
board in consultation with representatives of business and labor interests.

To gain approval, the district board must demonstrate all of the following:

1. That the proposed applied technology center is likely to increase or retain the
number of jobs in the region that require a high level of skill and provide a high level of
wages.

2. That the productivity of workers that would use the applied technology center
is likely to increase.

3. That a commitment exists from businesses in the region to fund 30% of the
capital costs of the applied technology center, 100% of the direct operating costs of services
provided under a contract at the applied technology center and 20% of the indirect
operating costs of services provided under a contract at the applied technology center.

4. That representatives of labor and business interests were consulted on the
development of the proposed applied technology center.

The district board must report to the technical college system board on the changes
in wages, productivity and skill levels of workers that have been directly served by the
applied technology center.

Expenditures must be made before January 1, 2002.

The bill makes two changes to current law. First, the bill provides that the
$5,000,000 limit does not apply to gifts, grants or federal funds. Also, the bill extends the
date by which expenditures may be made to December 31, 2002. [Section 6.]

CAPCO

The certified capital company (CAPCO) program was created by 1997 Wisconsin
Act 215. Under the program, an insurance company may receive a credit on its insurance
premiums tax for its investments in a CAPCO if the CAPCO uses these funds from the
insurer to invest as venture capital in designated small businesses in Wisconsin. These
venture capital investments are referred to as "qualified investments". The bill focuses
qualified investments on supporting the creation and expansion of new businesses,
rather than later stage financing, by doing the following:

---

1. Lowering the average annual net income of a qualified business that a CAPCO
may invest in from $2,000,000 to $1,000,000.

2. Precluding a CAPCO's qualified investment from being used to replace existing
sources of financing.

3. Requiring a CAPCO to have professional staff based in the state to manage its
investments in qualified businesses in Wisconsin to ensure that the CAPCO will be able
to provide the direct assistance that a start-up business needs. [Sections 45 to 47 and
51 (1 ).]

Venture Capital Fairs

Under current law, the department of commerce may make a grant from its
appropriation for community-based economic development programs to a
community-based economic development organization or a private nonprofit
organization for a venture capital fair if the fair will: (1) assist Wisconsin entrepreneurs
or businesses in obtaining capital for the start-up or development of a business; and (2)
likely stimulate investment, promote economic development or create or retain jobs in the
state.

The bill establishes that an eligible venture capital fair may be local, statewide or
multistate in nature and directs the department of commerce to encourage the
development of regional venture fairs in the upper midwest that meet the two
requirements for receipt of a grant to support a venture capital fair. [Sections 42 and 43.]

Foreign Language Immersion Grants

The bill creates a foreign language immersion grant program that requires the
state superintendent of public instruction to award grants, on a competitive basis, to an
educational organization or consortium of such organizations for the development and
implementation of a foreign language immersion instruction program in public or private
schools in grades kindergarten to six. Under the bill, the state superintendent is required
to promulgate rules defining "educational organization". The bill appropriates $350,000
general purpose revenues (GPR) in the 1999-00 school year and $750,000 GPR in the
2000-01 school year for this program. [Sections 1, 2 and 33.]

Wisconsin World Geography Fund

The bill creates a onetime appropriation of $500,000 GPR in fiscal year 2000-01
for the Wisconsin world geography fund and requires the state superintendent of public
instruction to enter into an agreement with the National Geographic Society Education
Foundation to establish the fund. The agreement must require the foundation to manage
the fund and must require the state superintendent to award a grant of $500,000 to the
fund if the award is matched by the National Geographic Society. The agreement must
further require that the income and appreciation of the fund be used to fund grants to
educational programs in the state that improve the geographic literacy of students and
teachers. The agreement must require that the National Geographic Society Education
Foundation annually submit a statement of the Wisconsin world geography fund account
prepared by an independent auditor to the state superintendent, along with a report on
the recipients who received a grant from the fund. Finally, the agreement must provide
that if the fund ceases to operate, or the state withdraws from participation, the state
contribution to the fund, along with any unexpended income or appreciation of the fund
attributable to the state's contribution, must be returned to the state. [Sections 1 , 3 and
32.]

W-2 Transportation Services

The bill makes the following changes in the W-2 program relating to
transportation services:

---

• W-2 Advisory Committee on Transportation

Under current law, each W-2 agency must establish a community steering
committee that, among other things, is to advise the W-2 agency concerning employment
and training activities and to provide and encourage others to provide jobs and training
opportunities for W-2 participants. The community steering committee must also work
with W-2 participants, employers, child care providers and the community to identify
child care needs, improve access to child care and expand the availability of child care.

The bill requires the community steering committee to establish an advisory
committee on transportation strategies and planning. The advisory committee is to be
made up of local transit or transportation providers, employers, child care providers, a
representative of a community organization that serves participants in the W-2 program,
a representative of a W-2 agency and other persons considered appropriate by the
steering committee. The advisory committee must make recommendations to the
steering committee on ways to provide affordable and sufficient transportation options
to low-income workers to access employment opportunities, child care services and other
services conducive to stable employment. [Section 10.]

• Accounting for Transportation Expenses

Currently, W-2 agencies are authorized to provide transportation assistance to
eligible individuals. Those services are paid for out of a W-2 agency's "ancillary services"
account. This ancillary services account may be used to provide other services such as
job skills assessment, job coaching, employment search, emergency child care and
worker's compensation premiums. Current law does not require a W-2 agency to provide
an accounting of its W-2-related transportation expenses.

The bill requires W-2 agencies to provide to DWD an accounting of the amount
expended on W-2-related transportation services in each contract year. [Section 11.]

• Eligibility for Transportation Assistance

Under current law, W-2 agencies may provide transportation assistance in a
manner prescribed by DWD. The W-2 agency must limit any financial assistance it
provides to financial assistance for public transportation if a form of public
transportation is available that meets the needs of the participant. Generally, an
individual is eligible for W-2 transportation assistance if the individual is a member of
a "W-2 group", the gross income of which is at or below 115% of the federal poverty line.

The bill requires DWD to set the income eligibility limit for W-2 transportation
assistance at or below 165% of the federal poverty line and makes noncustodial parents
of dependent children in a W-2 group eligible for W-2 transportation assistance if the
dependent child's custodial parent is a W-2 participant and the noncustodial parent is
subject to a child support order. [Section 9.]

Advanced Journeyworker Credential Pilot Program

The bill permits DWD to establish an advanced journeyworker credential pilot
program in up to three trades, crafts or businesses to recognize advanced training and
postapprenticeship achievements. The bill requires DWD to submit to the legislature,
by July 1, 2003, an evaluation of the effectiveness of the program.

The bill appropriates $160,000 in fiscal year 1999-00 and $120,000 in fiscal year
2000-01 and authorizes one additional full-time equivalent position for the
implementation and program development of the program. [Sections 31 and 49 (1 ).]

Brownfields

The bill makes changes to the state's brownfield laws. Those changes are described
below.

---

• Expand Protections for Local Units of Government That Involuntarily Acquire
Contaminated Property

Current law generally requires a person who possesses or controls a hazardous
substance that is discharged or who causes the discharge of a hazardous substance to
restore the environment to the extent practicable and to minimize the harmful effects of
the discharge on the environment. Current law generally exempts a local governmental
unit from these clean-up requirements with respect to hazardous substance discharges
on land acquired in specified ways, such as through tax delinquency proceedings and
condemnation.

Current law, as amended by 1999 Wisconsin Act 9, exempts a local governmental
unit that has acquired property in one of the specified ways from certain liability
requirements with respect to the existence of a hazardous waste if, among other things,
the waste is identified by an environmental investigation, the waste is cleaned up, the
local unit of government maintains and monitors the property and does not engage in
activities that are inconsistent with the maintenance of the property. The bill expands
this exemption to cover the existence of solid waste, subject to the same conditions as
apply to the existence of hazardous waste. [Section 39.]

• Provide Flexibility With Development Zone Tax Credits for Remediation

Under current law, a person may claim an income tax credit for up to 50% of the
person's environmental remediation expenses incurred in a development zone. Under
current law, the credit may not be transferred between persons, and a municipality or
nonprofit organization that engages in remedial remediation activities in a development
zone may not claim a credit.

This bill provides that any person eligible to claim a credit for remediation
expenses incurred in a development zone may transfer the right to claim the credit to any
other person subject to taxation in this state. In addition, the bill provides that a person
may claim a credit for 50% of the amount expended by a municipality or a tax-exempt
or nonprofit organization for environmental remediation in a development zone, if the
municipality or organization has entered into an exclusive written agreement with the
person claiming the credit. The bill requires the department of revenue (DOR) to
promulgate rules implementing the credit transfer provisions. [Sections 21 to 23 and 50
(3).]

• Modify the Land Recycling Loan Program

Under the land recycling loan program, the state provides loans to cities, villages,
towns and counties (political subdivisions) for projects to remedy environmental
contamination at sites owned by political subdivisions where the environmental
contamination has affected, or threatens to affect, groundwater or surface water.

The bill provides that land recycling loans may not be made for the purpose of
refinancing site investigations. [Section 34.]

• Modify Environmental Remediation Tax Incremental Financing District

Under current law, a city, village, town or county (political subdivision) may create
an environmental remediation tax incremental district (ERTID) to defray the costs of
remediating contaminated property that is owned by the political subdivision. The
mechanism for financing costs that are eligible for remediation is very similar to the
mechanism under the tax incremental financing (TIF) program. If the remediated
property is transferred to another person and is then subject to property taxation,
environmental remediation (ER) tax incremental financing may be used to allocate some
of the property taxes that are levied on the property to the political subdivision to pay for
the costs of remediation.

---

Under current law, as amended by 1999 Wisconsin Act 9, "eligible costs" include
capital costs, financing costs and certain administrative and professional service costs
incurred for the investigation, removal, containment or monitoring of, the environment
affected by, environmental pollution, property acquisition costs and demolition costs. The
bill expands "eligible costs" to include the cancellation of delinquent taxes.

Also, if the property that is being remediated is sold by a political subdivision, the
bill prohibits it from being sold or transferred to any person who is responsible for the
environmental pollution that is remediated. [Sections 13, 14 and 50 (1 ).]

Current law, as amended by 1999 Wisconsin Act 9, provides that a voluntary party
is not liable with respect to a discharge of a hazardous substance on or originating from
a property if the discharge occurred before an environmental investigation is complete
but was not discovered in the course of that investigation and if certain other
requirements are met. Those other requirements include: the environmental
investigation is approved by the department of natural resources (DNR); the voluntary
party enters into a clean-up agreement with DNR, if required by DNR; the voluntary
party obtains and maintains insurance to cover the costs of restoring the environment
and the discharge that is discovered before the original cleanup is complete. The bill
modifies these requirements to exempt from liability voluntary parties who discover a
discharge after doing all of the above and after conducting a second environmental
investigation and having it approved by DNR. Thus, under the bill, a voluntary party is
only exempt from the requirements to clean up hazardous substance discharge
discovered after the second environmental investigation is approved. [Sections 36 and
37.]

• Expand the Liability Protections for Local Units of Government

Generally, current law provides that a local governmental unit is immune from
civil liability for a discharge of a hazardous substance on or from property formerly owned
or controlled by the local governmental unit if the property is no longer owned by the local
governmental unit at the time that the discharge is discovered and if the property was
acquired by the local governmental unit in certain ways. Those ways include the
acquisition of the property through tax delinquency proceedings, as the result of an order
of a bankruptcy court, through condemnation or in pursuit of slum clearance or blight
elimination.

The bill expands this immunity to property acquired in these ways that is still
owned or controlled by the local unit of government at the time the discharge is
discovered. [Section 40 .]

•Require Use of Natural Attenuation in Areawide Groundwater Approaches and
Consideration of Groundwater Use in Conducting Cleanups

Current law gives DNR authority to promulgate administrative rules governing
cleanup of contaminated property. Under current administrative rules, one of the criteria
for case closure approval in a situation in which hazardous substance discharges into
groundwater exceed enforcement standards or preventive action limits is that
groundwater contamination exceeding those standards or limits will not migrate beyond
the boundaries of the property or properties for which groundwater use restrictions have
been recorded.

Under the bill, when determining the criteria for closure of a case involving
groundwater contamination exceeding enforcement standards or preventive action
limits, DNR is required to consider institutional controls, including municipal
ordinances, that provide adequate notice to the public of groundwater contamination in
the area affected by the groundwater contamination to be equivalent to recorded
groundwater use restrictions. [Sections 35, 38 and 41.]