Business organization and financial institutions
Implementation by DFI of section 529A ABLE savings account program
The bill requires DFI to implement a qualified ABLE program under section
529A of the Internal Revenue Code allowing tax-exempt accounts for qualified
expenses incurred by individuals with disabilities.
Under current federal law, states may create a qualified Achieving a Better Life
Experience program under which an individual may establish a tax-exempt savings
account to pay for qualified expenses, such as education, housing, and transportation
costs, for a beneficiary who is an individual with disabilities, as defined under federal
law. Although these accounts, commonly referred to as “ABLE accounts” or “section
529A accounts,” cannot be established under this state's law, they can be established
under another state's law, and if so established, withdrawals from these accounts for
payment of qualified disability expenses for the account beneficiary are exempt from
taxation in this state.
The bill requires DFI to implement and administer a qualified ABLE program,
either directly or by entering into an agreement with another state or alliance of
states to establish an ABLE program or otherwise administer ABLE program
services for the residents of this state. DFI must, within approximately nine months,
determine whether implementing the ABLE program directly or by entering into an
agreement is the best option for this state's residents. If DFI enters into an
agreement, the agreement may require the party contracting with DFI to do any of
the following: 1) develop and implement an ABLE program in accordance with all
requirements under federal law and modify the ABLE program as necessary for
participants to qualify for federal income tax benefits; 2) contract for professional
and technical assistance and advice in developing marketing plans and promotional
materials to publicize the ABLE program; 3) work with organizations with expertise
in supporting people with disabilities and their families in administering the
agreement and ensuring accessibility of the ABLE program for people with
disabilities; or 4) take any other action necessary to implement and administer the
ABLE program. The bill also requires DFI to provide on its website information
concerning ABLE accounts.
Children's savings and investment program
The bill requires DFI to collaborate with one or more philanthropic
organizations to develop a statewide children's savings and investment program,
funded and administered by the philanthropic organization or organizations. The
program must allow the balance of an account established under the program to be
transferred to a College Savings Program (commonly known as Edvest) account.
Fees for licensed securities industry participants
The bill increases certain securities-related fees paid to DFI.
Current law generally requires a securities broker-dealer and a person who
represents a broker-dealer or issuer in securities transactions (securities agent) to
be licensed, and generally requires an investment adviser and an investment adviser
representative to be licensed, before transacting business in this state.
Broker-dealers and investment advisers must pay to DFI initial and renewal license
fees of $200. Securities agents and investment adviser representatives must pay to
DFI initial and renewal license fees of $80. Although an investment adviser
registered with the federal Securities and Exchange Commission (federal covered
adviser) is not required to be licensed by DFI, it must pay to DFI an initial and
renewal notice filing fee of $200. In addition, broker-dealers and investment
advisers, including federal covered advisers, that maintain a branch office in this
state must pay a filing fee of $80 for each branch office.
The bill increases each of these fees, from $200 to $300 and from $80 to $100.
Notary public application fees
Under current law, any U.S. resident who is licensed to practice law in this state
is entitled to a permanent commission as a notary public upon application to DFI and
payment of a $50 fee. In addition, any U.S. resident who is at least 18 years of age
and who is not an attorney may file an application with DFI for a four-year
appointment as a notary public and must pay a $20 application fee. The bill increases
the application fee for attorneys from $50 to $100 and increases the application fee
for nonattorneys from $20 to $40.
Information related to public service loan forgiveness programs
The bill requires DFI to collect, maintain, and make available information
regarding student loan forgiveness programs available to employees of the state or
a local unit of government.
Worker misclassification information
The bill requires DFI to provide informational materials and resources on
worker misclassification to each person who files with DFI documents forming a
business corporation, nonstock corporation, limited liability company, limited
liability partnership, or limited partnership.
New DFI appropriations
The bill creates the following DFI appropriations: 1) a program revenue
appropriation that allows DFI to expend federal moneys received by DFI for the
purposes for which the federal moneys were received; and 2) a program revenue
appropriation that allows DFI to expend moneys received by DFI from other state
agencies or from within DFI for the purpose of administering programs or projects
for which the moneys were received.
Commerce
Changing the minimum age for cigarettes, tobacco products, and nicotine
products; imposing a minimum age for vapor products
The bill changes the age for purchasing cigarettes, tobacco products, or nicotine
products from 18 to 21, and imposes the same minimum age for purchasing vapor
products. Nicotine products are products that contain nicotine and that are not
tobacco products, cigarettes, or products that have been approved by the federal Food
and Drug Administration for sale as a smoking cessation product. Tobacco products
include products such as cigars, chewing tobacco, and smoking tobacco. Vapor
products are noncombustible products that produce a vapor or aerosol for inhalation
from the application of a heating element, regardless of whether the liquid or other
substance contains nicotine.
Currently, no person under the age of 18 may purchase, attempt to purchase,
possess, or falsely represent his or her age for the purpose of receiving any cigarette,
nicotine product, or tobacco product with certain limited exceptions. Current law
also prohibits any person from purchasing cigarettes, tobacco products, or nicotine
products on behalf of a person who is under the age of 18 and subjects that purchaser
to a penalty. Current law also prohibits a person from delivering a package of
cigarettes unless the person making the delivery verifies that the person receiving
the package is at least 18 years of age. The bill changes these ages from 18 to 21.
The bill similarly prohibits the purchase of vapor products by or on behalf of a person
who is under the age of 21.
Current law prohibits a retailer, manufacturer, distributor, jobber, subjobber,
or independent contractor or an employee or agent of any of these persons from
selling or providing cigarettes or tobacco or nicotine products to an individual who
is under the age of 18 and from providing cigarettes or tobacco or nicotine products
to any person for free unless the cigarettes or products are provided in a place where
persons under 18 years of age are generally not permitted to enter. Current law also
prohibits a retailer or vending machine operator from selling cigarettes or tobacco
or nicotine products from a vending machine unless the retailer or vending machine
operator ensures that no person under 18 years of age is present on or permitted to
enter the premises in which the machine is located. The bill changes these ages from
18 to 21. The bill similarly prohibits the sale or provision of vapor products to a
person who is the age of 21.
Retailer license requirement for vapor product sellers
The bill requires a person who sells vapor products to obtain an annual
cigarette and tobacco products retailer license from the clerk of the city, village, or
town in which the retailer is located.
Restrictions on placement of cigarettes, nicotine products, or tobacco
products
The bill allows a retailer to place cigarettes, nicotine products, or tobacco
products only in locations that are inaccessible to customers without the assistance
of the retailer or the retailer's employee or agent, such as behind the counter or in
a locked case. The bill's restriction does not apply to 1) cigarettes, nicotine products,
or tobacco products sold in a vending machine; 2) a retail location that generates 75
percent or more of its revenue from sales of cigarettes, nicotine products, or tobacco
products, as long as the retail location prohibits anyone under the age of 21 from
entering without a parent, guardian, or spouse who has reached that age; or 3) cigars
that are placed in a separate, humidity-controlled room in a retail location if the
entrance to the room is visible, either directly or by video surveillance, from the
check-out area and no person under the age of 21 is permitted to enter the room
without a parent, guardian, or spouse who has reached that age. Current law
imposes restrictions on sales from a vending machine that the bill does not affect.
A retailer who violates the bill's restriction is subject to the same penalties that
apply to violations of other restrictions that apply to retailers of cigarettes or tobacco
products, including 1) a forfeiture of not more than $500, if the retailer has not
committed a previous violation within 12 months; 2) a forfeiture of not less than $200
nor more than $500, if the retailer has committed a previous violation within 12
months; and 3) suspension of the retailer's license for a period of time that depends
on the number of previous violations committed by the retailer.
The bill also allows a first class city, which currently includes only Milwaukee,
to suspend, revoke, or refuse to renew a cigarette and tobacco products retailer
license if the retailer violates the bill's restriction, by following the complaint and
hearing procedure that exists under current law for certain other violations and
activities.
Unfair drug pricing practices and fraudulent drug advertising
The bill prohibits unfair drug pricing practices, which are defined as drug
pricing practices that cause substantial injury to consumers that is not outweighed
by countervailing benefits to consumers or to competition. Under the bill, DATCP
and district attorneys may seek injunctions in circuit court to restrain violations of
the prohibition, and DATCP may investigate alleged violations and promulgate rules
related to the prohibition.
The bill also authorizes DATCP to promulgate rules to enforce prohibitions
against fraudulent drug advertising. Current law generally prohibits a person from
making untrue, deceptive, or misleading representations about the effects of a drug
or making representations about the effects of a drug unless it is lawfully marketed
under federal law.
Prohibiting discrimination in broadband and broadband subscriber rights
The bill prohibits a broadband service provider from denying access to a group
of potential residential customers because of their race or income. Under the bill,
DATCP has authority to enforce the prohibition and to promulgate related rules. The
bill also authorizes any person affected by a broadband service provider who violates
the prohibition to bring a private action.
The bill also establishes various requirements for broadband service providers,
including requiring them to 1) provide service satisfying minimum standards
established by PSC and allow subscribers to terminate contracts if broadband
service fails to satisfy those standards; 2) provide service as described in
advertisements or representations made to subscribers; 3) repair broadband service
within 72 hours after a subscriber reports an interruption that is not the result of a
major system-wide or large area emergency; 4) give subscribers credit for
interruptions of broadband service that last more than 4 hours in a day; and 5) give
subscribers at least 30 days' advance written notice before instituting a rate
increase.
The bill also requires each internet service provider in this state to register with
PSC.
Extended closing hours during special events
Under current law, with limited exceptions, no person may sell alcohol
beverages to a consumer unless the seller possesses a license or permit authorizing
the sale. A Class “B" license authorizes the retail sale of fermented malt beverages
(beer) for consumption on or off the premises. A “Class B" license authorizes the
retail sale of intoxicating liquor, which includes wine and distilled spirits, for
consumption on the licensed premises and, subject to restrictions, the retail sale of
intoxicating liquor in original packages for consumption off the licensed premises.
A “Class C" license, which may be issued only for a restaurant, authorizes the retail
sale of wine for consumption on the premises. A retailer operating under a Class “B,"
“Class B,” or “Class C” license may not remain open between the hours of 2 a.m. and
6 a.m. on weekdays or between 2:30 a.m. and 6 a.m. on Saturday and Sunday.
The bill allows a municipality to designate by ordinance a special event lasting
fewer than eight consecutive days during which closing hours for premises that
obtain a special event permit from the municipality and that are operating under a
Class “B,” “Class B,” or “Class C” license in the municipality are extended. Under
the bill, the municipality may extend the closing hour for such premises to no later
than 4 a.m. during the special event. A municipality may not designate more than
four special events in a calendar year.
Sales of alcohol beverages at State Fair Park
The bill allows a person approved by the State Fair Park Board to sell, without
a license or permit, alcohol beverages for consumption at the state fair park. The bill
specifies that the State Fair Park Board may not grant such approval unless the
person meets certain eligibility requirements applicable to retail licensees and that
such approval is also required for retail sales by brewers and brewpubs at State Fair
Park.
DOR publication of list of alcohol beverage retail licensees
The bill requires DOR to publish a list of retail licensees on DOR's website.
Under current law, DOR issues alcohol beverage permits and municipalities issue
alcohol beverage licenses. Each municipality must annually provide DOR with a list
of the municipality's retail licensees, including name, address, and type of license.
The bill requires DOR to publish this list on DOR's website.
Economic development
WEDC venture capital fund of funds program
The bill directs WEDC to establish and administer a fund of funds program to
invest in venture capital funds that invest in Wisconsin businesses. The bill requires
WEDC to create a fund of funds that will continuously reinvest its assets and to
create an oversight board whose duties include contracting with an investment
manager.
The bill directs the oversight board to establish investment policies for the
program. Under the bill, the program's moneys must be committed for investment
to venture capital funds no later than 60 months after the fund of funds is created
and no more than $25,000,000 may be invested in any single venture capital fund.
The bill requires that at least 20 percent of the investments made through the
program be directed to businesses located in parts of the state that typically do not
receive significant venture capital fund investment, minority-owned businesses,
and women-owned businesses. The bill prohibits any investment in lobbying and
law firms.
Under the bill, the investment manager must contract with each venture
capital fund that receives moneys through the program. The contract must require
the venture capital fund to do all of the following:
1. Make new investments in an amount equal to the moneys it receives through
the program in businesses who are headquartered, and whose operations are
primarily, in Wisconsin.
2. At least match the amount it receives through the program and invests in
a business with an investment in that same business of moneys from sources other
than the program. The investment manager must ensure that, on average, for every
$1 a venture capital fund receives through the program and invests in a business,
the venture capital fund invests $2 in that business from sources other than the
program.
3. Provide the investment manager with the information necessary to complete
the reports described below.
The bill requires the investment manager to annually submit to WEDC an
audit of the investment manager's financial statements, the rate of return from
investments made through the program, and information on each venture capital
fund participating in the program and business in which investment were made.
WEDC must submit this information to the legislature. The bill also requires the
investment manager to submit quarterly reports to the oversight board.
Changes to the state main street program
Under current law, WEDC is required to establish and administer a state main
street program to coordinate state and local participation in programs offered by the
national main street center to assist municipalities in planning, managing, and
implementing programs for the revitalization of commercial areas having historical
significance. Under the current state main street program, WEDC is required to do
all of the following:
1. Contract with the national main street center for services related to
revitalizing commercial areas having historical significance.
2. Develop a plan describing the objectives of the state main street program and
the methods by which WEDC will carry out certain responsibilities specified by law.
3. Coordinate with other state and local public and private entities in relation
to the state main street program.
4. Annually select, upon application, up to five municipalities to participate in
the state main street program. The program for each municipality concludes after
five years. The corporation is required to select program participants representing
various geographical regions and populations.
5. Develop objective criteria for use in selecting participants in the state main
street program.
6. Provide training, technical assistance, and information on the revitalization
of commercial areas that have historical significance to municipalities not
participating in the state main street program.
7. Annually expend at least $250,000 annually on the state main street
program.
The bill substantially replaces WEDC's duties under the state main street
program and instead requires WEDC, in accordance with guidelines of the national
main street center, to assist municipalities in planning, managing, and
implementing programs for the revitalization of downtown areas and historic
commercial districts, including by doing all of the following:
1. Assisting communities in restoring and retaining the historic character of
their downtown areas and historic commercial districts.
2. Promoting business investment, assisting in retaining existing small
businesses, and promoting new businesses in downtown areas and historic
commercial districts.
3. Assisting in strengthening the local tax base.
4. Assisting in the creation of employment opportunities in downtown areas
and historic commercial districts.
5. Enhancing the economic viability of downtown areas and historic
commercial districts.
The bill also requires WEDC to annually select, upon application, up to five new
municipalities to participate in the state main street program, but a municipality's
participation in the program is not limited to five years. The bill continues to require
the corporation to provide related training, technical assistance, and information to
municipalities not participating in the state main street program.
Finally, under the bill, WEDC is no longer required to expend up to $250,000
annually on the state main street program.
Wage thresholds for business development and enterprise zone tax credits
The bill raises the minimum wage thresholds for the business development and
enterprise zone tax credits for businesses that enter into contracts with WEDC after
December 31, 2021. Under current law, WEDC may certify businesses that engage
in qualifying activities, including full-time job creation and retention, to claim the
credits. One requirement for claiming either credit is that the business enter into
a contract with WEDC. In its contracts, WEDC uses a definition of “full-time
employee” that means an individual who, among other things, is paid at least 150
percent of the federal minimum wage. The bill changes this minimum wage
threshold to $27,900 for the business development tax credit and to $27,900 in a tier
I county or municipality and $37,000 in a tier II county or municipality for the
enterprise zone tax credit, with all these amounts adjusted annually for inflation.
Additionally, under current law, the enterprise zone tax credit is partially based on
the wages paid to zone employees that are at least 150 percent of the federal
minimum wage in a tier I county or municipality or $30,000 in a tier II county or
municipality. The bill changes these thresholds to $27,900 and $37,000, with both
amounts adjusted annually for inflation.
The bill also modifies the maximum wage earnings limit for businesses that
enter into contracts with WEDC after December 31, 2021. Under current law, the
maximum wage earnings that may be considered per employee for the enterprise
zone tax credit is $100,000. The bill increases this amount to $123,000, which is
adjusted annually for inflation, and establishes the same dollar amount limit for the
business development tax credit.
Designation of enterprise zones
Current law allows WEDC to designate an unlimited number of enterprise
zones, with each designation subject to approval by JCF under passive review.
Current law also provides that an enterprise zone expires after 12 years and, upon
such expiration,WEDC may designate a new zone subject to JCF approval.
The bill authorizes WEDC to designate up to 30 enterprise zones and repeals
the requirement that WEDC receive approval from JCF. Under the bill, WEDC may
cancel the designation of an enterprise zone if WEDC revokes the certifications for
all tax benefits within the zone and may designate a new zone after the cancellation.
The bill also provides that if an enterprise zone expires under the contract with the
business certified to claim tax benefits, WEDC may designate a new zone, and
WEDC is provided this authority on a retroactive basis.
Financial assistance for underserved communities
The bill requires WEDC to expend $5,000,000 annually to provide grants,
loans, and other assistance to underserved communities in Wisconsin, including
members of minority groups, woman-owned businesses, and individuals and
businesses in rural areas.
Funding for regional economic development organizations to assist with
pandemic recovery
The bill appropriates $8,000,000 to WEDC in the 2021-22 fiscal year to provide
funding to organizations focused on local or regional economic development in this
state for the purpose of assisting Wisconsin businesses and nonprofits in their
recovery from the COVID-19 global pandemic.
Small business pandemic recovery
The bill requires WEDC to aid in Wisconsin's economic recovery from the
COVID-19 global pandemic by providing financial assistance to small businesses
adversely affected by the pandemic, including for the retention of current employees
and the rehiring of former employees. The bill requires WEDC to coordinate with
DOR as necessary to administer the aid.
Creative economy development initiative grants
The bill authorizes the Arts Board to award grants on a competitive basis in the
2021-23 fiscal biennium to businesses, whether operated for profit or not for profit,
local governmental agencies, and business development organizations or
associations that work to promote any of the following in Wisconsin:
1. Individuals or organizations whose products or services have an origin in
artistic, cultural, creative, or aesthetic content.
2. Job creation.
3. Economic development.
4. Arts education.
5. Workforce training and development.
