LRB-4072/1
CTS:bjk:jf
2009 - 2010 LEGISLATURE
April 22, 2010 - Introduced by Representatives Huebsch, Cullen, Vos, LeMahieu,
Kaufert, Townsend, Spanbauer, Kerkman, Bies, Petrowski, Brooks,
Newcomer, Knodl and
Nygren, cosponsored by Senators Darling and Olsen.
Referred to Committee on Jobs, the Economy and Small Business.
AB968,1,4
1An Act to create 20.525 (1) (e), 20.525 (1) (q), 25.17 (1) (gd), 25.415 and 560.095
2of the statutes;
relating to: authorizing the governor to award grants and
3loans for development projects, granting rule-making authority, and making
4appropriations.
Analysis by the Legislative Reference Bureau
This bill authorizes the governor to award a grant or loan to a political
subdivision for infrastructure improvements specified in the bill for development
projects that will create new jobs.
Under the bill, the governor may award a grant or loan for any of the following:
1) a project that involves a $10,000,000 private investment and creates at least 100
new jobs, as defined in the bill; 2) a project located in a political subdivision with a
population less than 100,000 that involves a $5,000,000 private investment and
creates at least 50 new jobs; or 3) a project located in a political subdivision with a
population less than 50,000 that involves a $2,500,000 private investment and
creates at least 25 new jobs. At least one-quarter of the total amount of grant and
loan moneys awarded in a fiscal biennium must be awarded to political subdivisions
with unemployment rates that are higher than the statewide average
unemployment rate, and at least one-quarter must be awarded to political
subdivisions with populations of 35,000 or less. However, the governor may award
a grant or loan notwithstanding the investment and job creation requirements or the
one-quarter minimums for certain political subdivisions if the Joint Committee on
Finance fails to schedule a hearing on the governor's proposal within five days or
approves the proposal after a hearing.
The bill requires a political subdivision that receives a grant or loan to enter
into a contract with the business for whose benefit the grant or loan has been
awarded that specifies a deadline for securing the private investment and creating
the new jobs. A political subdivision may grant an extension of the deadline of up
to 15 days, but a business that fails to meet the deadline must repay a prorated
portion of the grant or loan.
The governor, with the advice of the Department of Commerce (department),
must develop guidelines and criteria for grants and loans that encourage the award
of grants and loans throughout the state and set a cap on the amount of grants. The
department assists the governor in reviewing applications and monitors contract
compliance.
Awards under the bill come from a new segregated fund, the Governor's
Opportunity Fund, which consists of moneys transferred from a new sum certain
appropriation created in the general fund and of repayments of grants and loans
under the program.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB968, s. 1
1Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table 
AB968, s. 2
3Section
2. 20.525 (1) (e) of the statutes is created to read:
AB968,2,54
20.525
(1) (e)
Governor's opportunity fund. The amounts in the schedule to be
5transferred to the governor's opportunity fund.
AB968, s. 3
6Section
3. 20.525 (1) (q) of the statutes is created to read:
AB968,3,3
120.525
(1) (q)
Governor's opportunity fund loans. From the governor's
2opportunity fund, all moneys deposited in the governor's opportunity fund for grants
3and loans under s. 560.095.
AB968, s. 4
4Section
4. 25.17 (1) (gd) of the statutes is created to read:
AB968,3,55
25.17
(1) (gd) Governor's opportunity fund (s. 25.415);
AB968, s. 5
6Section
5. 25.415 of the statutes is created to read:
AB968,3,10
725.415 Governor's opportunity fund. There is established a separate
8nonlapsible trust fund designated as the governor's opportunity fund, consisting of
9all moneys transferred under s. 20.525 (1) (e) and all moneys received in repayment
10of grants and loans under s. 560.095.
AB968, s. 6
11Section
6. 560.095 of the statutes is created to read:
AB968,3,13
12560.095 Governor's opportunity fund; grants and loans. (1) In this
13section:
AB968,3,1614
(a) "Eligible costs" means the cost of any of the following, except that "eligible
15costs" do not include payment or guarantee of payment for any rental, lease, license,
16or other contractual right to the use of property:
AB968,3,1817
1. Public or private utility extension or capacity development on or off the site
18of the development project.
AB968,3,2019
2. Public or private installation, extension, or capacity development of
20high-speed or broadband Internet access, whether on-site or off-site.
AB968,3,2221
3. Road, rail, or other transportation access costs that exceed the funding
22capability of existing programs.
AB968,3,2323
4. Site acquisition.
AB968,3,2524
5. Grading, drainage, paving, and any other activity required to prepare a site
25for construction.
AB968,4,1
16. Construction or build-out of publicly owned buildings.
AB968,4,53
8. Grants or loans to an industrial development authority, housing and
4redevelopment authority, or other political subdivision for purposes directly relating
5to an eligible cost under subds. 1. to 7.
AB968,4,116
(b) "New job" means employment of an indefinite duration that is created as
7the direct result of a private investment and for which the employer pays wages and
8standard fringe benefits, if the employment requires an employee to work at least
91,680 hours per year or at least 35 hours per week for at least 48 weeks. "New job"
10does not include a position created by an employer by shifting a job function from
11another location in this state or a position created at an employer's supplier.
AB968,4,1212
(c) "Political subdivision" means a city, village, town, or county.
AB968,4,15
13(2) (a) Subject to pars. (b) to (d), the governor may award a grant or loan from
14the appropriations under s. 20.525 (1) (e) and (q) to a political subdivision for eligible
15costs of a development project if one of the following applies:
AB968,4,1716
1. The project involves a private investment of at least $10,000,000 and creates
17at least 100 new jobs.
AB968,4,2018
2. The project involves a private investment of at least $5,000,000; creates at
19least 50 new jobs; and is located in a political subdivision with a population less than
20100,000.
AB968,4,2321
3. The project involves a private investment of at least $2,500,000; creates at
22least 25 new jobs; and is located in a political subdivision with a population less than
2350,000.
AB968,5,224
(b) The governor may not award a grant or loan for a development project in
25which a business relocates or expands its operations in one or more locations in this
1state and simultaneously closes or substantially reduces its operations or the
2number of its employees in another location in this state.
AB968,5,63
(c) At least one-quarter of the total amount of grant and loan moneys awarded
4in a fiscal biennium shall be awarded to political subdivisions whose unemployment
5rate in the calendar year preceding the award of the grant exceeded the average
6unemployment rate in this state for the same type of political subdivision.
AB968,5,97
(d) At least one-quarter of the total amount of grant and loan moneys awarded
8in a fiscal biennium shall be awarded to political subdivisions with populations of
935,000 or less.
AB968,5,12
10(3) Notwithstanding sub. (2), the governor may award a grant or loan from the
11appropriations under s. 20.525 (1) (e) and (q) to a political subdivision for eligible
12costs of a development project if all of the following apply:
AB968,5,1413
(a) The governor submits to the cochairpersons of the joint committee on
14finance a proposal to award a grant or loan under this subsection.
AB968,5,1515
(b) One of the following is true:
AB968,5,1816
1. The cochairpersons of the joint committee on finance do not notify the
17governor that the committee has scheduled a hearing on the governor's proposal
18under par. (a) within 5 days after receiving the proposal.
AB968,5,2019
2. The joint committee on finance approves the governor's proposal under par.
20(a) after a hearing.
