Chapter 238

238.03(4)(a) (a) In this subsection, “unassigned balance” means all moneys held by the corporation that the corporation is not obligated by law or by contract to expend for a particular purpose or that the corporation has not otherwise assigned to be expended for a particular purpose.

238.03(4)(b) (b) The board shall establish policies and procedures for maintaining and expending any unassigned balance that satisfy all of the following requirements:

238.03(4)(b)1. 1. The policies and procedures shall be consistent with best practices recommended by the Government Finance Officers Association.

238.03(4)(b)2. 2. The policies and procedures shall establish as a target that the corporation’s unassigned balance on June 30 of each fiscal year be an amount equal to or less than one-sixth of the corporation’s total administrative expenditures for that fiscal year.

238.03(5) (5) The board shall hire a full-time employee who shall be known as the electronics manufacturing small business development director. The director’s duties shall include coordinating with the economic development liaison in the department of administration and providing outreach to local economic development organizations. This subsection has no effect after December 31, 2022.

238.03 History History: 2011 a. 7; 2013 a. 20; 2015 a. 55; 2017 a. 58, 369.

238.04 238.04 Powers of board. The board shall have all the powers necessary or convenient to carry out the purposes and provisions of this chapter. In addition to all other powers granted the board under this chapter, the board may specifically:

238.04(1) (1) Adopt, amend, and repeal any bylaws, policies, and procedures for the regulation of its affairs and the conduct of its business.

238.04(2) (2) Have a seal and alter the seal at pleasure.

238.04(3) (3) Maintain an office.

238.04(4) (4) Sue and be sued.

238.04(5) (5) Accept gifts, grants, loans, or other contributions from private or public sources.

238.04(6) (6) Establish the corporation’s annual budget and monitor the fiscal management of the corporation.

238.04(7) (7) Execute contracts and other instruments required for the operation of the corporation.

238.04(8) (8) Employ any officers, agents, and employees that it may require and determine their qualifications, duties, and compensation.

238.04(9) (9) Issue notes, bonds, and any other obligations.

238.04(10) (10) Make loans and provide grants.

238.04(11) (11) Incur debt.

238.04(12) (12) Procure liability insurance.

238.04(14) (14) Enter into agreements regarding compensation, space, and other administrative matters as are necessary to operate offices in other states and foreign countries. Such agreements shall be subject to the approval of the secretary of administration.

238.04(15) (15) Appoint and supervise the economic development liaison project position created in 2017 Wisconsin Act 58, section 61 (1).

238.04 History History: 2011 a. 7; 2011 a. 32 s. 3289; 2017 a. 369.

238.045 238.045 Establishment of nonprofit organization.

238.045(1) (1) Definition. In this section, “nonprofit organization” means a nonprofit corporation, as defined in s. 181.0103 (17), and any organization described in section 501 (c) (3) of the Internal Revenue Code that is exempt from federal income tax under section 501 (a) of the Internal Revenue Code.

238.045(2) (2) Approval required.

238.045(2)(a) (a) The corporation may not establish a nonprofit organization without the approval of the joint committee on finance.

238.045(2)(b) (b) The joint committee on finance may approve the corporation’s establishment of a nonprofit organization if the corporation’s chief executive officer submits a request for approval to the committee that describes in detail the corporation’s proposal to establish a nonprofit organization and the chief executive officer appears at the committee’s meeting to consider that request for approval.

238.045 History History: 2013 a. 20.

238.046 238.046 Private interest in public contract.

238.046(1) (1) A member of the board or an employee of the corporation to whom the board delegates its authority to contract shall notify the corporation’s legal counsel or, if the corporation’s legal counsel is unavailable, the chief executive officer of the corporation if the member or employee has a direct or indirect, private, pecuniary interest in a contract that is being negotiated, bid for, or entered into with the corporation. If the corporation’s legal counsel or chief executive officer is notified under this section, he or she shall report the name of the individual from whom he or she received the notification and the contract in which the individual has a private, pecuniary interest to the board. A member or employee who notifies the corporation’s legal counsel or chief executive officer under this section is not authorized to participate in the member’s or employee’s capacity as a member of the board or an employee of the corporation in the making of the contract or to perform in regard to the contract some official function requiring the exercise of discretion on the member’s or employee’s part.

238.046(2) (2) An employee of the corporation shall notify the corporation’s legal counsel or, if the corporation’s legal counsel is unavailable, the chief executive officer of the corporation if the employee has a controlling interest in an entity that is negotiating, bidding for, or entering into a contract with the corporation. If the corporation’s legal counsel or chief executive officer is notified under this section, he or she shall report the name of the individual from whom he or she received the notification and the contract at issue to the board. The board shall prohibit the corporation from entering into any contract with an entity in which an employee of the corporation has a controlling interest.

238.046 History History: 2013 a. 43 s. 1; 2013 a. 173 s. 32.

238.06 238.06 Liability limited. Neither the state nor any political subdivision of the state, nor any officer, employee, or agent of the state or a political subdivision of the state who is acting within the scope of employment or agency, is liable for any debt, obligation, act, or omission of the corporation.

238.06 History History: 2011 a. 7.

238.07 238.07 Submission of annual reports to legislature.

238.07(1) (1) Annually, by January 1, the board shall submit to the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2), a report identifying the economic development projects that the board intends to develop and implement during the current calendar year.

238.07(2) (2) Annually, no later than October l, the board shall submit to the joint legislative audit committee and the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2), a report for the previous fiscal year on each of the economic development programs of the corporation that contains all of the following:

238.07(2)(a) (a) A description of each program.

238.07(2)(ag) (ag) An accounting of the location, by municipality, of each job created or retained in the state in the previous fiscal year as a result of the program.

238.07(2)(ar) (ar) An accounting of the industry classification, by municipality, of each job created or retained in the state as a result of the program.

238.07(2)(b) (b) A comparison of expected and actual program outcomes.

238.07(2)(c) (c) The number of grants made under the program.

238.07(2)(d) (d) The number of loans made under the program.

238.07(2)(dm) (dm) The total amount of tax benefits allocated, and the total amount of tax benefits verified to the department of revenue, under the program.

238.07(2)(e) (e) The amount of each grant and loan made under the program.

238.07(2)(f) (f) The recipient of each grant or loan made under the program.

238.07(2)(fm) (fm) An identification of each recipient of a tax benefit allocated, and each recipient of a tax benefit that was verified to the department of revenue, under the program.

238.07(2)(g) (g) The sum total of all grants and loans awarded to and received by each recipient under the program.

238.07(2)(h) (h) Any recommended changes to the program.

238.07(3) (3) The board shall make readily accessible to the public on an Internet-based system the information required under sub. (2).

238.07(4) (4) Annually, beginning in 2014, the board shall have an independent audit conducted of the corporation’s financial statements for the previous fiscal year and submit the audit report to the joint legislative audit committee and the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2).

238.07 History History: 2011 a. 7; 2013 a. 20.

238.08 238.08 Records of the corporation. All records of the corporation are open to the public as provided in s. 19.35 (1) except those records relating to the following:

238.08(1) (1) Pending grants, loans, or economic development projects that, in the opinion of the corporation, must remain confidential to protect the competitive nature of the grant, loan, or project.

238.08(2) (2) Confidential tax information received from the department of revenue under s. 71.78.

238.08 History History: 2011 a. 32; 2023 a. 19.

238.09 238.09 Procurement policies and procedures. The board shall adopt policies and procedures that specify all of the following:

238.09(1) (1) When the corporation is required to publicly solicit proposals from multiple vendors of goods or services.

238.09(2) (2) How the corporation is to evaluate proposals from multiple vendors.

238.09(3) (3) How the corporation is to assess any conflict of interest a vendor may have if the vendor sells goods or services to the corporation.

238.09 History History: 2013 a. 20.

238.10 238.10 Allocation of volume cap on tax-exempt bonds.

238.10(1) (1) Allocation. The corporation shall establish under 26 USC 146 and administer a system for the allocation of the volume cap on the issuance of private activity bonds, as defined under 26 USC 141 (a), among all municipalities, as defined in s. 67.01 (5), and any corporation formed on behalf of those municipalities, and among this state, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Aerospace Authority, and the Wisconsin Housing and Economic Development Authority.

238.10(2) (2) Amendment to allocation. At any time prior to December 31 in any year, the corporation may adopt rules to revise the allocation system established for that year under sub. (1), except that any revision under this subsection does not apply to any allocation under which the recipient of that allocation has adopted a resolution authorizing the issuance of a private activity bond, as defined in 26 USC 141 (a).

238.10(3) (3) Conditions. The corporation may establish any procedure for, and place any condition upon, the granting of an allocation under this section which the corporation deems to be in the best interest of the state including a requirement that a cash deposit, at a rate established by the corporation, be a condition for an allocation.

238.10(4) (4) Certification. If the corporation receives notice of the issuance of a bond under an allocation under subs. (1) to (3), the corporation shall certify that that bond meets the requirements of 26 USC 146.

238.10 History History: 1987 a. 69, 403; 1989 a. 8; 1997 a. 27; 2005 a. 335; 2011 a. 32 s. 3315; Stats. 2011 s. 238.10.

238.11 238.11 Employment impact estimates.

238.11(1) (1) The corporation shall prescribe the notice forms to be used under s. 66.1103 (4m) (a) 1. The corporation shall include on the forms a requirement for information on the number of jobs the person submitting the notice expects to be eliminated, created, or maintained on the project site and elsewhere in this state by the project which is the subject of the notice. The corporation shall prescribe the forms to be used under s. 66.1103 (4m) (b).

238.11(2) (2) If the corporation receives a notice under s. 66.1103 (4m) (a), the corporation shall estimate, no later than 20 days after receipt of the notice, whether the project that is the subject of the notice is expected to eliminate, create, or maintain jobs on the project site and elsewhere in this state and the net number of jobs expected to be eliminated, created, or maintained as a result of the project.

238.11(5) (5) The corporation shall issue an estimate made under sub. (2) to the city, village, town, or county which will issue the bonds to finance the project which is the subject of the estimate.

238.11 History History: 1985 a. 299; 1999 a. 85; 1999 a. 150 s. 672; 2001 a. 104; 2009 a. 112; 2011 a. 32 s. 3318; Stats. 2011 s. 238.11; 2011 a. 214.

238.115 238.115 Tax credit reporting.

238.115(1) (1) Corporation obligations. No later than the end of the first month following each quarter, the corporation shall provide to the department of revenue all of the following information for the previous quarter:

238.115(1)(a) (a) The identity of each person the corporation certified for tax credits under this chapter and, for each person, the amount certified.

238.115(1)(b) (b) The identity of each person the corporation verified to claim tax credits under this chapter based on the person’s satisfaction of all applicable requirements to be eligible to claim the tax credits and, for each person, the amount verified.

238.115(1)(c) (c) The identity of each person, whether an entity or individual, who may claim tax credits as the result of each verification of each person identified under par. (b). The information provided under this paragraph shall specify the taxable year that applies for each of those persons.

238.115(1)(d) (d) The identity of each person, whether an entity or individual, who may claim tax credits as the result of a transfer of tax credits under this chapter and, for each person, the amount transferred. The information provided under this paragraph shall specify the taxable year that applies for each of those persons.

238.115(1)(e) (e) The identity of each person for whom the corporation revoked a certification for tax credits and, for each person, the amount revoked.

238.115(1)(f) (f) The amount of tax credits the corporation determined each person identified under par. (e) was eligible to claim that, if already claimed, must be repaid by the person as the result of the revocation.

238.115(1)(g) (g) Any other information the department of revenue and the corporation agree is necessary to accurately track certification, verification, transfer, and usage of tax credits under this chapter.

238.115(2) (2) Taxpayer obligations. Each person the corporation certifies for tax credits under this chapter shall provide all information necessary for the corporation to comply with the reporting requirements under sub. (1).

238.115(3) (3) Department of revenue’s obligation. The department of revenue shall track the amount of all tax credits administered by the corporation that have been claimed or used to offset tax liability and the amount of all available unused tax credits under this chapter.

238.115 History History: 2015 a. 55; 2019 a. 9.

238.12 238.12 Repayment of grants, loans, and tax benefits.

238.12(1) (1) In this section, “tax benefits” means the credits under ss. 71.07 (2dm), (2dx), (3g), (3t), and (3wm), 71.28 (1dm), (1dx), (3g), (3t), and (3wm), 71.47 (1dm), (1dx), (3g), and (3t), and 76.636.

238.12(2) (2) The corporation may not award a grant or loan under this chapter to a person or certify a person to receive tax benefits unless the corporation enters into an agreement with the person that requires the person to repay the grant, loan, or tax benefits if, within 5 years after receiving the grant or loan or being certified to receive tax benefits, the person ceases to conduct in this state the economic activity for which the person received the grant or loan or for which the person was certified to receive tax benefits and commences substantially the same economic activity outside this state.

238.12 History History: 2005 a. 25, 259; 2011 a. 32 s. 3327; Stats. 2011 s. 238.12; 2015 a. 55; 2017 a. 58.

238.124 238.124 Loan limitations.