Economic development activities of the Wisconsin Housing and Economic Development Authority

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 (Act 32) transferred responsibility over economic development activities from Commerce to WEDC, including a requirement that WEDC consent to the issuance by WHEDA of bonds and notes to finance economic development activities. Act 32 also required WEDC to adopt rules to implement the financing of economic development loans by WHEDA and required businesses that received an economic development loan from WHEDA to submit a report to WEDC. Current law prohibits WHEDA from financing an economic development loan unless the business that would have received the loan notified WEDC of its intent to sign the contract. This bill eliminates the role of WEDC in overseeing the identified aspects of WHEDA's economic development activities and requires a business that receives an economic development loan to report directly to WHEDA.