The bill authorizes DATCP to provide grants to county agriculture agents of the UW–Extension to help farm operators hire business consultants and attorneys to examine their farm business plans and help them create farm succession plans.
Grants for food waste reduction pilot projects
The bill requires DATCP to provide grants for food waste reduction pilot projects that have an objective of preventing food waste, redirecting surplus food to hunger relief organizations, and composting food waste. Under the bill, DATCP must give preference to grant proposals that serve census tracts for which the median household income is below the statewide median household income and in which no grocery store is located.
Tribal elder food security program
The bill creates a grant program under which DATCP must provide grants to one or more nonprofit entities for the purpose of purchasing and distributing food to tribal elders and for the purpose of supporting the growth and operations of producers participating in the program. A nonprofit that receives a grant under the program must give preference to purchasing food from, and supporting the growth and operations of, indigenous-based food producers and local food producers.
The bill requires, annually, $1,500,000 in tribal gaming receipts to be used for grants to purchase food and support distribution operations and $500,000 in tribal gaming receipts to be used for grants to support the growth and operations of producers under the program.
Labeling wild rice as “traditionally harvested”
The bill prohibits any person from labeling wild rice as “traditionally harvested” unless the wild rice is harvested using traditional wild rice harvesting methods of American Indian tribes or bands. The bill requires DATCP to promulgate an administrative rule defining traditional wild rice harvesting methods of American Indian tribes or bands. Under the bill, DATCP must obtain the advice and recommendations of the Great Lakes Inter-Tribal Council, Inc., before promulgating an administrative rule defining a traditional method of wild rice harvesting.
Farmland preservation implementation grants
The bill authorizes DATCP to award grants to counties to implement a certified county farmland preservation plan.
County land conservation staff
Under current law, as part of the soil and water resource management program, DATCP provides grants to counties for county conservation staffing. Current law specifies the activities that county conservation staff may engage in with grants provided under this program. The bill provides that these grants may also be used to fund county conservation staff who administer or implement long-range planning and erosion control mitigation.
Under current law, grants for county conservation staffing provide full funding for a county’s first conservation staff position; 70 percent of the cost of a county’s second position; and 50 percent of the cost of a county’s third or subsequent position. The county must provide the remaining funds for these conservation staff positions. DATCP and DNR jointly prepare an allocation plan each year, setting out the amounts to be paid to each county under the program. Current law also requires DATCP and DNR to attempt to provide an average of $100,000 to each county for staffing grants.
Under the bill, if any money remains after meeting these goals, DATCP and DNR may provide, in their annual grant allocation plan, grants to counties for fourth and subsequent conservation staff positions, with a requirement for the county to pay an amount towards those positions as determined by DATCP and DNR; and grants to counties to assist them in meeting their funding requirements for a second or third conservation staff position.
Planning grants for establishing regional biodigesters
Under the bill, DATCP must provide planning grants for establishing regional biodigesters in this state. Biodigesters are used to break down organic material into gas, liquids, and solids.
Biodigester operator certification grants
The bill requires DATCP to provide grants to individuals seeking biodigester operator certification. The bill also allows DATCP to promulgate administrative rules establishing the application process and grant-awarding criteria for the biodigester operator certification grants.
Water stewardship certification
The bill creates a grant program under which DATCP may provide grants to reimburse the costs for agricultural producers to apply for a certification of water stewardship from the Alliance for Water Stewardship. The grants must be made directly to the producer, and may not be used to pay the costs of operational changes needed to achieve certification.
Bonding for soil and water resource management
The bill increases the general obligation bonding authority for the soil and water resource management program by $7,000,000. The program, which is administered by DATCP, awards grants to counties to help fund their land and water conservation activities.
New appropriation for existing and new grant and loan programs
The bill combines appropriations for several existing and new DATCP grant and loan programs. Under the bill, the following programs are all funded from the same GPR appropriation: the existing meat processing facility grant program, dairy processing plant grant program, dairy producer loan and grant program, and Buy Local grant program; and the new food security and Wisconsin products grant program, Farm to Fork grant program, value-added agricultural products grant program, and the farm business consultant grant program, all of which are created under the bill. The bill also allows DATCP to use funds from this GPR appropriation for the Something Special from Wisconsin program, in addition to the program’s current funding from program fees.
COMMERCE AND ECONOMIC DEVELOPMENT
Commerce
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 administrative rules. The bill also authorizes any person affected by a broadband service provider who violates the prohibition to bring a private action.
The bill establishes various requirements for broadband service providers, including the following: 1) broadband service providers must provide service satisfying minimum standards established by PSC, and subscribers may terminate contracts if the broadband service provider fails to satisfy those standards; 2) broadband service providers must provide service as described in advertisements or representations made to subscribers; 3) broadband service providers must repair broadband service within 72 hours after a subscriber reports a broadband service interruption that is not the result of a major system-wide or large area emergency; 4) broadband service providers must give subscribers credit for interruptions of broadband service that last more than four hours in a day; and 5) broadband service providers must 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.
Eliminating minimum markup requirement for the sale of motor vehicle fuel
The bill exempts sales of motor vehicle fuel from the minimum markup requirement under the Unfair Sales Act.
Under current law, the Unfair Sales Act 1) prohibits below-cost sales of any merchandise if the sale is intended to induce the purchase of other merchandise or divert trade unfairly from a competitor; and 2) requires a “minimum markup” (a specified amount over the cost of the merchandise to the seller) to be added to sales of motor vehicle fuel, tobacco products, fermented malt beverages, liquor, or wine. The required minimum markup for motor vehicle fuel is 3, 6, or 9.18 percent of the cost of the fuel to the seller, depending on whether the fuel is sold by a retailer or a wholesaler and whether the fuel is sold from a retail station. The bill exempts sales of motor vehicle fuel from the minimum markup requirement under the Unfair Sales Act.
Changing the minimum age for cigarettes, tobacco products, and nicotine products; imposing a minimum age for vapor products
The bill changes the minimum age in Wisconsin for purchasing cigarettes, tobacco products, or nicotine products from 18 to 21 and imposes the same minimum age for purchasing vapor products.
In December 2019, enacted legislation amending the federal Food, Drug, and Cosmetic Act raised the federal minimum age for the sale of tobacco products from 18 to 21. Under current federal law, it is illegal for a retailer to sell any tobacco product—including cigarettes, cigars, and e-cigarettes—to anyone under the age of 21.
Under current state law, “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.
Under current state law, 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 state 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. A person is also prohibited under current state law 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 state 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 state 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 where 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 under the age of 21.
Small Business Retirement Savings Board; retirement savings program
The bill creates a Small Business Retirement Savings Board, attached to DFI, and requires the board to establish and oversee a small business retirement savings program for certain privately employed individuals who are not eligible for an employer-sponsored retirement plan. The board must contract with a vendor (investment administrator) to provide specified services in administering the program, including investment services and record-keeping services.
Under the bill, the board consists of the following seven members: the secretary of financial institutions or his or her designee; two members appointed by the governor; two members appointed, respectively, by the speaker of the assembly and president of the senate; one member appointed by the secretary of financial institutions; and one member appointed by the State of Wisconsin Investment Board. The bill requires certain members to possess specified attributes or experience, and all members except the secretary of financial institutions or his or her designee serve four-year terms.
Under the bill, the board must design the program to meet certain requirements. Among these, the program must allow eligible employees to contribute to their accounts through payroll deductions and require participating employers to withhold from employees’ wages, through payroll deductions, employees’ account contributions and remit those contributions directly to the investment administrator. A “participating employer” is a private employer that does not offer a retirement savings plan to all employees; has at least one employee who is a resident of this state; provides notice to the board of its election to participate in the program; and certifies that, on the date of this notice, it had 50 or fewer employees. An “eligible employee” is an individual who resides in this state and who is employed by a private employer that does not offer a retirement savings plan in which the individual may participate. The bill defines “account” as a retirement savings account established for an eligible employee under the program. Other requirements of the program are that the administrative costs must be low and the fee that the investment administrator may charge an eligible employee is limited to a fixed monthly fee in an amount approved by the board. The program must also allow an eligible employee who has established an account to continue the account after separating from employment with a participating employer if the account is maintained with a positive balance.
Under the bill, after electing to participate in the program, a participating employer must provide notice to each of its eligible employees of the eligible employee’s right to opt out of the program. Unless the eligible employee opts out, the participating employer must enroll the eligible employee in the program and begin making payroll deductions, which amounts are remitted to the investment administrator as account contributions of the employee. Unless a different account type is offered, and the employee selects another option, these contributions are made to a Roth IRA for the employee. Unless the employee directs otherwise, during the employee’s first year of enrollment in the program, the participating employer must make a payroll deduction each pay period at a rate of 5 percent of the employee’s gross wages, with this rate increasing by 1 percent per year until a maximum rate of 10 percent is reached. However, the participating employer must make a good faith effort to establish the payroll deduction at a rate that will not result in the employee’s total annual contributions exceeding maximum contribution limits established by the board in accordance with the federal contribution limits for Roth IRAs, although the participating employer is not responsible if excess contributions occur. Under the program, the eligible employee must have certain investment options within each account type, including a stable value or capital preservation fund and a target date index fund or age-based fund. An eligible employee’s first $1,000 of contributions must be deposited in a stable value or capital preservation fund, and thereafter, unless the employee selects a different investment option, the employee’s contributions must be deposited in a target date index fund or age-based fund.
The bill specifies that, in establishing the program, the board may create or impose any requirement or condition not inconsistent with the bill’s requirements that the board considers necessary for the effective functioning and widespread utilization of the program. The bill also authorizes the board to enter into contracts for services necessary for establishing and overseeing the program, including services of financial institutions, attorneys, investment advisers, accountants, consultants, and other professionals. The board may promulgate administrative rules related to the program. DFI must provide the board with assistance necessary for the program, including staff, equipment, and office space. The board may delegate to DFI responsibility for carrying out any day-to-day board function related to the program.
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.
Current law also requires DFI to study and report on establishing a qualified ABLE program, including examination of the advantages and disadvantages of certain options and review and evaluation of related issues. DFI was required to report to the legislature the results of the study, including DFI’s findings and recommendations, by September 1, 2022.
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.
Sales by a municipality or county of wine in a public park
The bill allows a municipality or county to sell wine in its public parks without an alcohol beverage license.
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. Under one exception, no license or permit is required for the sale, by officers or employees of a county or municipality, of fermented malt beverages (beer) in a public park operated by the county or municipality.
The bill applies this exception to wine along with beer.
Closing hours for alcohol beverage retailers during the 2024 Republican National Convention
The bill creates an exception allowing southeast Wisconsin municipalities to authorize extended closing hours for certain alcohol beverage retailers during the time that the 2024 Republican National Convention is held in Milwaukee.
Under current law, a Class “B” license authorizes the retail sale of beer for consumption on or off the licensed premises. Except when issued to a winery, a “Class B” license authorizes the retail sale of intoxicating liquor for consumption on the licensed premises and, subject to restrictions, for consumption off the licensed premises. Class “B” and “Class B” licenses are often issued together for restaurants and taverns. A “Class C” license, which may be issued only for a restaurant, authorizes the retail sale of wine for consumption on the licensed premises. With limited exceptions, 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, and a municipality may not impose different closing hours by ordinance.
The bill creates a closing hour exception that may be available for Class “B,” “Class B,” and “Class C” licensees operating in a municipality any part of which is located within Kenosha, Racine, Walworth, Rock, Milwaukee, Waukesha, Jefferson, Dane, Ozaukee, Washington, Dodge, Columbia, Sheboygan, or Fond du Lac County (southeast Wisconsin municipality). Under the bill, from July 15 to July 19, 2024, the closing hour for a Class “B,” “Class B,” or “Class C” licensed premises in a southeast Wisconsin municipality is 4 a.m. if the municipality issuing the license has adopted a resolution allowing extended closing hours and, upon application by a licensee, has authorized the extended closing hour for that licensee. The bill does not affect the hours during which a Class “B” or “Class B” licensee may make sales for off-premises consumption.
Economic development
WEDC venture capital fund of funds program
The bill directs WEDC to establish and administer a venture capital 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 under the program and to create an oversight board whose duties include contracting with an investment manager for the program.
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 $18,750,000 may be committed to any single venture capital fund for investment. 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 this state.
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 to the investment manager 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 certain information on each venture capital fund participating in the program and each business in which investments 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.
WEDC GPR appropriation
The bill adds $40,000,000 to WEDC’s GPR appropriation for general operations and economic development programs in fiscal year 2023-24. The bill also adjusts the calculation used to determine the amount of WEDC’s GPR appropriation.
Business development tax credit changes
Under current law, the tax benefits WEDC may award to a person certified under the business development tax credit program include an amount equal to up to 50 percent of the person’s training costs incurred to undertake activities to enhance an eligible employee’s general knowledge, employability, and flexibility in the workplace; to develop skills unique to the person’s workplace or equipment; or to develop skills that will increase the quality of the person’s product. Under the bill, that criterion for awarding business development tax credits is changed to an amount equal to up to 50 percent of the person’s training costs incurred to undertake activities to upgrade or improve the job-related skills of an eligible employee, train an eligible employee on the use of job-related new technologies, or provide job-related training to an eligible employee whose employment with the person represents the employee’s first full-time job.
Also, under current law, the tax benefits WEDC may award to a person certified under the business development tax credit program include an amount determined by WEDC that is equal to a percentage of the amount of wages that the person paid to an eligible employee in the taxable year, if the position in which the eligible employee was employed was created or retained in connection with the person’s location or retention of the person’s corporate headquarters in this state and the job duties associated with the eligible employee’s position involve the performance of corporate headquarters functions. Under the bill, WEDC may award business development tax credits under that criterion regardless of whether the job duties associated with the eligible employee’s position involve the performance of corporate headquarters functions.
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, 2023. 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 $32,000 for the business development tax credit and to $32,000 in a tier I county or municipality and $42,390 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 $32,000 and $42,390, respectively, 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, 2023. 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 $141,300, which is adjusted annually for inflation, and establishes the same dollar amount limit for the business development tax credit.
The bill also adjusts the definition of “full-time job” for purposes of the business development tax credit and “full-time employee” for purposes of the enterprise zone jobs tax credit by removing the current requirement that a worker work at least 2,080 hours per year, including paid leave and holidays, in order to be considered “full-time.”
Enterprise zone designations
Under current law, WEDC may designate any number of enterprise zones for purposes of certifying taxpayers to claim tax credits for certain activities carried out within an enterprise zone. However, current law subjects WEDC’s designation of a new enterprise zone to the approval of JCF under passive review.
The bill provides that WEDC may designate no more than 30 enterprise zones and eliminates the requirement that WEDC seek approval for a new enterprise zone from JCF under passive review.
Energy efficiency and renewable energy project expenditures for the business development tax credit
The bill adds a new category of expenditures that qualify for the business development tax credit. Under current law, WEDC may award the tax credit to a certified business on the basis of its qualifying expenses related to job creation and retention, employee training, capital investment, and corporate headquarters location or retention in this state. Under the bill, WEDC may also award the tax credit on the basis of a certified business’s energy efficiency or renewable energy project expenditures. The credit is equal to up to 25 percent of the expenditures and, under the bill, WEDC must ensure that the percentage of expenditures taken into account positively correlates to the scale of the project. The bill applies to credits awarded after December 31, 2023.
Main Street Bounceback grants
The bill creates an annual GPR appropriation for WEDC to award grants to provide assistance to businesses opening a new location or expanding operations in a vacant commercial space. WEDC already administers such a program, which is nonstatutory, with federal American Rescue Plan Act funding. Under the bill, WEDC must establish eligibility requirements and other policies and procedures for grants awarded under the bill that are substantially similar to the eligibility requirements and policies and procedures in effect on June 30, 2023, for the Wisconsin Tomorrow Main Street Bounceback Grant Program administered by WEDC. Additionally, WEDC may not award a grant under the bill to a nonprofit organization.
Cooperative development funding
The bill requires WEDC to allocate at least $500,000 from its economic development appropriations in the 2023-24 fiscal year for the purpose of assisting cooperative development activities in this state.
WEDC’s unassigned fund balance
Current law requires that WEDC establish policies and procedures concerning its unassigned fund balance, which is defined as all moneys held by WEDC that WEDC is not obligated by law or by contract to expend for a particular purpose or that WEDC has not otherwise assigned to be expended for a particular purpose. Under current law, those policies and procedures must include as a target that WEDC’s unassigned fund balance on June 30 of each fiscal year be an amount equal to or less than one-sixth of WEDC’s total administrative expenditures for that fiscal year. The bill eliminates the requirement that WEDC’s policies and procedures include that target for WEDC’s unassigned fund balance.
Information sharing between WEDC and DOR
The bill allows WEDC and DOR to enter into an agreement under which WEDC may obtain copies of tax returns and related documents from DOR. The bill also authorizes WEDC to examine tax returns and related documents held by DOR to the extent necessary to administer WEDC’s economic development programs. Under current law, WEDC’s examination authority is limited to the development zone tax credit program.
