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.
WHEFA financing of nonprofit institution working capital costs
Under current law, WHEFA may issue bonds to finance certain projects of health, educational, research, and other nonprofit institutions. The bill authorizes WHEFA to issue bonds for the purpose of financing such institutions’ working capital costs.
Landlord-tenant
Notification of building code violations
Under current law, before entering into a lease with or accepting any earnest money or a security deposit from a prospective tenant, a landlord must disclose to the prospective tenant any building code or housing code violations of which the landlord has actual knowledge if the violation presents a significant threat to the prospective tenant’s health or safety. The bill eliminates the condition that the landlord have actual knowledge of such a violation and that the threat to the prospective tenant’s health or safety be “significant”; under the bill, the landlord must disclose to a prospective tenant a building code or housing code violation, regardless of whether the landlord has actual knowledge of the violation, if the violation presents a threat to the prospective tenant’s health or safety.
Local landlord-tenant ordinances
Current law prohibits cities, villages, towns, and counties (local governments) from enacting certain ordinances relating to landlords and tenants. Local governments may not do any of the following:
1. Prohibit or limit landlords from obtaining or using certain information relating to a tenant or prospective tenant, including monthly household income, occupation, rental history, credit information, court records, and social security numbers.
2. Limit how far back in time a landlord may look at a prospective tenant’s credit information, conviction record, or previous housing.
3. Prohibit or limit a landlord from entering into a rental agreement with a prospective tenant while the premises are occupied by a current tenant.
4. Prohibit or limit a landlord from showing a premises to a prospective tenant during a current tenant’s tenancy.
5. Place requirements on a landlord with respect to security deposits or earnest money or inspections that are in addition to what is required under administrative rules.
6. Limit a tenant’s responsibility for any damage to or neglect of the premises.
7. Require a landlord to provide any information to tenants or to the local government any information that is not required to be provided under federal or state law.
8. Require a residential property to be inspected except under certain circumstances.
9. Impose an occupancy or transfer of tenancy fee on a rental unit.
Current law also prohibits local governments from regulating rent abatement in a way that permits abatement for conditions other than those that materially affect the health or safety of the tenant or that substantially affect the use and occupancy of the premises. The bill eliminates all of these prohibitions.
Local moratorium on evictions
Current law prohibits local governments from imposing a moratorium on landlords from pursuing evictions actions against a tenant. The bill eliminates that prohibition.
Rental property inspection requirements
The bill makes various changes to the requirements relating to inspections of rental properties. The bill eliminates existing limitations on inspection fees that municipalities and counties may charge for rental property inspections. Under the bill, a landlord must provide notice to a tenant of an impending inspection in the same manner the landlord would provide notice under current law to enter for repairs or to show the property to prospective tenants. The bill also provides that rental property inspection fees charged by a municipality or county are not subject to deduction from the municipality or county’s tax levy.
Tourism
American Indian tourism marketing
The bill requires DOA to award an annual grant to the Great Lakes Inter-Tribal Council to provide funding for a program to promote tourism featuring American Indian heritage and culture. The bill also transfers from the Department of Tourism to DOA a contract between the Great Lakes Inter-Tribal Council and the Department of Tourism that relates to the promotion of tourism featuring American Indian heritage and culture.
Major opportunities and events
The bill authorizes the Department of Tourism to expend moneys to attract major opportunities and events to this state, including expenditures for major marketing and professional efforts. The bill requires the department to collaborate with WEDC to implement the department’s duties under the bill.
Marketing clearinghouse
The bill repeals the requirement that the Department of Tourism maintain a marketing clearinghouse to provide marketing services to state agencies.
Cheese distribution
Under current law, the Department of Tourism must distribute donated, Wisconsin-made cheese at tourist information centers that the Department of Tourism operates. The bill eliminates that requirement.
Famous residents in marketing
Under current law, the Council on Tourism must consider using famous current and former residents of this state in tourism marketing strategies. The bill eliminates that requirement.
WPGA Junior Foundation
Under current law, the WPGA Junior Foundation, Inc., which is a nonprofit organization dedicated to promoting the game of golf to Wisconsin junior golfers and their families, must submit to the attorney general and each house of the legislature an audited financial statement of its use of payments paid to the WPGA Junior Foundation, Inc., by the Department of Tourism to fund efforts to provide opportunities, enjoyment, and education to junior golfers in this state. The bill eliminates that reporting requirement.
Marketing efforts reporting requirement
Under current law, the Department of Tourism must annually report the activities, marketing efforts, receipts, and disbursements of the Department of Tourism for the previous fiscal year to the Senate Committee on Natural Resources and Energy and the Assembly Committee on Tourism. The bill designates that these annual reports be sent to the appropriate standing committees of the legislature.
CORRECTIONAL SYSTEM
Adult correctional system
Earned compliance credit
The bill creates an earned compliance credit for time spent on extended supervision or parole. Under current law, a person’s extended supervision or parole may be revoked if he or she violates a condition or rule of the extended supervision or parole. If extended supervision or parole is revoked, the person is returned to prison for an amount of time up to the length of the original sentence, less any time actually served in confinement and less any credit for good behavior. Under current law, when extended supervision or parole is revoked, the time spent on extended supervision or parole is not credited as time served under the sentence.
Under the bill, an eligible inmate receives an earned compliance credit for time served on extended supervision or parole. The earned compliance credit equals the amount of time served on extended supervision or parole without violating any condition or rule of extended supervision or parole. Under the bill, a person is eligible to receive the earned compliance credit only if the person is not required to register as a sex offender and is serving a sentence for a crime that is not a specified violent crime or a specified crime against a child. Under the bill, if a person’s extended supervision or parole is revoked, he or she may be incarcerated for up to the length of the original sentence, less any credit for time served in confinement, any credit for good behavior, and any earned compliance credit.
Earned release
The bill expands the earned release program. Under current law, an eligible inmate may earn early release to parole or extended supervision by successfully completing a substance use disorder treatment program. An inmate is eligible for earned release only if the inmate is serving time for a crime that is not a violent crime and, for an inmate who is serving a bifurcated sentence, the sentencing court determines that the inmate is eligible.
The bill expands the earned release program to include successful completion of a vocational readiness program, which includes educational, vocational, treatment, or other qualifying evidence-based training programs to reduce recidivism, in addition to successful completion of a substance use disorder treatment program. The bill also provides that DOC, not the sentencing court, determines program participation eligibility for all inmates.
Notice to crime victims upon parole or release to extended supervision
Under current law, before a prisoner is released on parole or extended supervision, the parole commission or DOC must notify certain individuals of the pending release, including the victim of the crime or, if the victim died as a result of the crime, an adult member of the victim’s family or, if the victim is younger than 18 years old, the victim’s parent or legal guardian. The bill provides that, if the victim died as a result of the crime, the parole commission or DOC must also notify any member of the victim’s family who was younger than 18 years old at the time the crime was committed but is now 18 years old or older.
Treatment of pregnant and postpartum person in prison and jail
The bill limits the use of physical restraints on pregnant and postpartum persons who are in the custody of a correctional facility. Under the bill, a pregnant person may not be restrained unless the restraints are reasonably necessary for the legitimate safety and security needs of the person, correctional staff, other inmates, or the public, and any restraints used must be the least restrictive possible under the circumstances. In addition, the bill requires that each woman in the custody of a correctional facility be offered testing for pregnancy, and, if pregnant, be offered testing for sexually transmitted infections. The bill also requires the correctional facility where the pregnant or postpartum person is being confined to provide information related to pregnancy, labor, and the postpartum period, and to provide access to certain health services related to pregnancy, labor, and the postpartum period.
Reimbursement for law enforcement investigative services
Under current law, DOC must reimburse counties for certain expenses related to an action or proceeding involving a prisoner in a state prison or a juvenile in a juvenile correctional facility in the county. The bill adds that DOC must reimburse any county, city, village, or town that provides law enforcement investigative services for an incident involving a prisoner in a state prison or a juvenile in a juvenile correctional facility.
Transfer of security operations at Wisconsin Resource Center
The bill transfers security operations at the Wisconsin Resource Center from DOC to DHS. The transfer includes the transfer of assets, liabilities, position authorizations and the incumbent employees holding those positions, tangible personal property, contracts, and any currently pending matters.
Juvenile correctional system
Age of juvenile court jurisdiction
Under current law, a person 17 years of age or older who is alleged to have violated a criminal law is subject to the procedures specified in the Criminal Procedure Code and, on conviction, is subject to sentencing under the Criminal Code, which may include a sentence of imprisonment in the Wisconsin state prisons. Currently, subject to certain exceptions, a person under 17 years of age who is alleged to have violated a criminal law is subject to the procedures specified in the Juvenile Justice Code and, on being adjudicated delinquent, is subject to an array of dispositions under that code, including placement in a juvenile correctional facility. The bill raises from 17 to 18 the age at which a person who is alleged to have violated a criminal law is subject to the procedures specified in the Criminal Procedure Code and, on conviction, to sentencing under the Criminal Code.
Similarly, under current law, a person 17 years of age or older who is alleged to have violated a civil law or municipal ordinance is subject to the jurisdiction and procedures of the circuit court or, if applicable, the municipal court, while a person under 17 years of age who is alleged to have violated a civil law or municipal ordinance, subject to certain exceptions, is subject to the jurisdiction and procedures of the court assigned to exercise jurisdiction under the Juvenile Justice Code. The bill raises from 17 to 18 the age at which a person who is alleged to have violated a civil law or municipal ordinance is subject to the jurisdiction and procedures of the circuit court or, if applicable, the municipal court.
Seventeen-year-old juvenile justice aids
The bill creates a sum sufficient appropriation under DCF for youth-aids-related purposes but only to reimburse counties, beginning on January 1, 2024, for costs associated with juveniles who were alleged to have violated a state or federal criminal law or any civil law or municipal ordinance at age 17.
Juvenile Justice Reform Review Committee
The bill creates a Juvenile Justice Reform Review Committee in DCF, with members appointed by the governor. Under the bill, the committee is charged with studying and providing recommendations to DCF and DOC on how to do all of the following:
1. Increase the minimum age of delinquency.
2. Eliminate original adult court jurisdiction over juveniles.
3. Modify the waiver procedure for adult court jurisdiction over juveniles and incorporate offenses currently subject to original adult court jurisdiction into the waiver procedure.
4. Eliminate the serious juvenile offender program and create extended juvenile court jurisdiction with a blended juvenile and adult sentence structure for certain juvenile offenders.
5. Prohibit placement of a juvenile in a juvenile detention facility for a status offense and limit sanctions and short-term holds in a juvenile detention facility to cases in which there is a public safety risk.
6. Sunset long-term post-disposition programs at juvenile detention facilities.
7. Create a sentence adjustment procedure for youthful offenders.
8. Conform with the U.S. Constitution the statutes that mandate imposing sentences of life imprisonment without parole or extended supervision to minors.
