AB 590

This bill makes all of the following changes to the organization, powers, and

duties of the board of directors of the Wisconsin Economic Development Corporation

(WEDC):

1. Currently, the WEDC board includes six members who are nominated by the

governor and appointed with the advice and consent of the senate and who serve at

the pleasure of the governor; three members appointed by the speaker of the

assembly, consisting of one majority and one minority party representative to the

assembly and one person employed in the private sector; and three members

appointed by the senate majority leader, consisting of one majority and one minority

party senator and one person employed in the private sector.

Under this bill, the members of the WEDC board nominated by the governor

no longer serve at the pleasure of the governor but serve four-year terms. The

governor must select nominees from a list of candidates prepared by the WEDC

board. In addition, the members of the board appointed by the speaker of the

assembly and senate majority leader who are employed in the private sector no

longer serve at the pleasure of the speaker or majority leader but serve four-year

terms.

2. Under the bill, the WEDC board must prepare a list of candidates from which

the governor may nominate members of the board. The WEDC board must include

on the list at least two candidates for each position. In addition, the board must select

candidates who have financial management experience, municipal or regional

economic development experience, or private sector business experience. The board

must also ensure that some of the candidates have expertise in corporate ethics.

3. Currently, the governor serves as chairperson of the WEDC board. Under

the bill, the WEDC board must elect a chairperson. The board must also elect one

of its members to serve as a lead director for a two-year term. Under the bill, the lead

director is to provide guidance to the WEDC board, facilitate communication

between the board and the corporation, and advise the chairperson of the board and

the chief executive officer.

4. Currently, the WEDC chief executive officer is nominated by the governor,

and with the advice and consent of the senate appointed, to serve at the pleasure of

the governor. This bill provides that the board shall appoint the chief executive

officer and may not delegate to any WEDC employee the power to appoint or

terminate the employment of any executive employee of WEDC.

5. The bill also provides that the WEDC board may not delegate to any WEDC

employee the power or duty to develop or implement any internal policy without the

board first approving the policy.

6. The bill requires the WEDC board to establish a finance committee

consisting of five board members. The members of the finance committee must elect

a chairperson. Under the bill, no offers of grants, loans, or tax credits may be made