There is created an authority, which is a public body corporate and politic, to be known as the “Wisconsin Economic Development Corporation." The members of the board shall consist of 6 members nominated by the governor, and with the advice and consent of the senate appointed, to serve at the pleasure of the governor; 4 members appointed by the speaker of the assembly to serve 4-year terms; one member appointed by the minority leader of the assembly to serve a 4-year term; 4 members appointed by the senate majority leader to serve 4-year terms; and one member appointed by the minority leader of the senate to serve a 4-year term. Neither the speaker of the assembly nor the senate majority leader may appoint more than 2 members of the legislature to the board. The secretary of administration and the secretary of revenue shall also serve on the board as nonvoting members. The board shall elect a chairperson from among its nonlegislative voting members. A vacancy on the board shall be filled in the same manner as the original appointment to the board for the remainder of the unexpired term, if any.
A majority of the appointed members of the board currently serving constitutes a quorum for the purpose of conducting its business and exercising its powers and for all other purposes. Action may be taken by the board upon a vote of a majority of the appointed members present.
A chief executive officer shall be nominated by the governor, and with the advice and consent of the senate appointed, to serve at the pleasure of the governor. The board may delegate to the chief executive officer any powers and duties the board considers proper. The chief executive officer shall receive such compensation as may be determined by the board.
All powers and duties assigned to the corporation under this chapter shall be exercised or carried out by the board, unless the board delegates the power or duty to an employee of the corporation or a committee established by the board.
Duties of board. 238.03(1)(1)
The board shall develop and implement economic programs to provide business support and expertise and financial assistance to companies that are investing and creating jobs in Wisconsin and to support new business start-ups and business expansion and growth in Wisconsin. The board may also develop and implement any other programs related to economic development in Wisconsin.
For each program developed and implemented by the board, the board shall do all of the following:
Establish clear and measurable goals for the program that are tied to statutory or programmatic policy objectives.
Establish at least one quantifiable benchmark for each program goal described in par. (a)
Require that each recipient of a grant, loan award, or tax credit under the program submit a report to the corporation. Each contract with a recipient of a grant, loan award, or tax credit under the program must specify the frequency and format of the report to be submitted to the corporation and the performance measures to be included in the report. Each recipient shall submit a statement to the corporation signed by the recipient or the director or principal officer of the recipient attesting to the accuracy and truthfulness of the information.
Establish a method for evaluating the projected results of the program with actual outcomes as determined by evaluating the information described in pars. (a)
Annually and independently verify, from a sample of grants, loan awards, and tax credits, the accuracy of the information required to be reported under par. (c)
The board shall require for each program developed and implemented by the board all of the following:
That each recipient of a grant or loan under the program of at least $100,000 submit to the corporation, within 120 days after the end of the recipient's fiscal year in which any grant or loan funds were expended, a schedule of expenditures of the grant or loan funds, including expenditures of any matching cash or in-kind match, signed by the director or principal officer of the recipient to attest to the accuracy of the schedule of expenditures. The recipient shall engage an independent certified public accountant to perform procedures, approved by the corporation and consistent with applicable professional standards of the American Institute of Certified Public Accountants, to determine whether the grant or loan funds and any matching cash or in-kind match were expended in accordance with the grant or loan contract. The board shall also require the recipient of such a grant or loan to make available for inspection the documents supporting the schedule of expenditures. The board shall include the requirements under this paragraph in the contract with grant or loan recipients.
That the board, if a recipient of a grant or loan under the program submits false or misleading information to the corporation or fails to comply with the terms of a contract entered into with the corporation, without providing satisfactory explanation for the noncompliance, do all of the following:
Withhold future payments to be made to the recipient.
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.
The board shall establish policies and procedures for maintaining and expending any unassigned balance that satisfy all of the following requirements:
The policies and procedures shall be consistent with best practices recommended by the Government Finance Officers Association.
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.
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.
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:
Adopt, amend, and repeal any bylaws, policies, and procedures for the regulation of its affairs and the conduct of its business.
Have a seal and alter the seal at pleasure.
Accept gifts, grants, loans, or other contributions from private or public sources.
Establish the corporation's annual budget and monitor the fiscal management of the corporation.
Execute contracts and other instruments required for the operation of the corporation.
Employ any officers, agents, and employees that it may require and determine their qualifications, duties, and compensation.
Issue notes, bonds, and any other obligations.
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.
Establishment of nonprofit organization. 238.045(1)(1)
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.
The corporation may not establish a nonprofit organization without the approval of the joint committee on finance.
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.
History: 2013 a. 20
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.
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.
History: 2013 a. 43
; 2013 a. 173
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.
History: 2011 a. 7
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.
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:
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.
An accounting of the industry classification, by municipality, of each job created or retained in the state as a result of the program.
A comparison of expected and actual program outcomes.
The number of grants made under the program.
The number of loans made under the program.
The total amount of tax benefits allocated, and the total amount of tax benefits verified to the department of revenue, under the program.
The amount of each grant and loan made under the program.
The recipient of each grant or loan made under the program.
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.
The sum total of all grants and loans awarded to and received by each recipient under the program.
The board shall make readily accessible to the public on an Internet-based system the information required under sub. (2)
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)
History: 2011 a. 7
; 2013 a. 20
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 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.
History: 2011 a. 32
Procurement policies and procedures.
The board shall adopt policies and procedures that specify all of the following:
When the corporation is required to publicly solicit proposals from multiple vendors of goods or services.
How the corporation is to evaluate proposals from multiple vendors.
How the corporation is to assess any conflict of interest a vendor may have if the vendor sells goods or services to the corporation.
History: 2013 a. 20
Allocation of volume cap on tax-exempt bonds. 238.10(1)(1)
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.
(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
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.
If the corporation receives notice of the issuance of a bond under an allocation under subs. (1)
, the corporation shall certify that that bond meets the requirements of 26 USC 146
History: 1987 a. 69
; 1989 a. 8
; 1997 a. 27
; 2005 a. 335
; 2011 a. 32
; Stats. 2011 s. 238.10.
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)
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.
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.