SB 459

This bill makes several changes to the laws governing economic development

activities conducted by the Wisconsin Housing and Economic Development

Authority (WHEDA).

Under current law, WHEDA may issue negotiable bonds and notes to finance

economic development activities, including making economic development loans to

finance economic development projects. Current law defines an economic

development project to include land, plant, or equipment for facilities for all of the

following: 1) manufacturing activities specified under a standard industrial

classification manual published by the federal government printing office; 2) the

retail sale of goods or services to consumers if the facilities are located in certain

areas such as a tax incremental district, an environmental remediation tax

incremental district, or a business incubator; 3) research and development activities

relating to production of tangible products; and 4) activities of a long-term nature,

such as research and development performed by firms engaged in manufacturing

activities or firms engaged in research and development of manufactured products.

This bill changes those portions of the definition of economic development project to

include land, plant, or equipment for facilities for the following: 1) manufacturing or

commercial real estate activities; 2) the retail sale of goods or services; 3) research

and development activities; and 4) activities of a long-term nature, such as research

and development or long-term working capital.

Current law permits WHEDA to issue not more than $200,000,000 in aggregate

principal amount of bonds and notes for economic development activities. Current

law also imposes certain limits on the total amounts of bonds and notes issued by

WHEDA for other purposes, including for housing rehabilitation and for veterans

housing loans and other veterans assistance programs, but provides that those limits

do not apply to bonds and notes issued by WHEDA for economic development

activities. This bill permits WHEDA to issue not more than $150,000,000 in

aggregate principal amount of bonds and notes for economic development activities

in any fiscal year. The bill also eliminates the exception to the applicability of certain

limits on the amounts of bonds and notes issued by WHEDA for bonds and notes

issued for economic development activities.

2011 Wisconsin Act 7

created the Wisconsin Economic Development

Corporation (WEDC), a public entity authorized to develop and implement programs

to provide support, expertise, and financial assistance to companies, including

businesses seeking to begin or expand operations in this state, and to develop and

implement other programs related to economic development in this state. Prior to

the creation of WEDC, the Department of Commerce (Commerce) had responsibility

over many economic development activities in Wisconsin.

2011 Wisconsin Act 32