Assembly panel backs bill criminalizing defrauding WEDC

An Assembly panel has approved a bill that would make it a crime to provide fraudulent information to WEDC.

The bill, which makes that action a class E felony, was amended to add a provision that allows WEDC to recoup any damages in court. It cleared the Assembly Committee on Jobs and the Economy 11-3 on Wednesday, with all Republicans voting for the bill and three Dems opposing it.

Rep. Tod Ohnstad, D-Kenosha, called his vote against the bill a “tough one.” He said the potential penalties under the bill could scare companies away from applying for WEDC’s help.

“I want to make sure that the good, legitimate Wisconsin businesses are not chilled from going forward and seeking the funding that they need,” Ohnstad said.

Joining Ohnstad in voting against the bill were Milwaukee Dem Reps. Mandela Barnes and JoCasta Zamarripa. The two Dems supporting the bill were Reps. Mark Spreitzer, of Beloit, Amanda Stuck, of Appleton.

Rep. Mike Kuglitsch, R-New Berlin, tried to persuade Ohnstad to vote for the bill, noting that lawmakers from both parties have often approved bills to ensure that “we aren’t defrauded.”

“This is what we have done across the aisle since I’ve been here,” Kuglitsch said.

The committee also held a public hearing on four economic development bills, one of which raises the cap on investments eligible for the state’s Qualified New Business Venture program.

Under the program, certain investors get tax credits for investing in small Wisconsin companies that participate. But companies can only get $8 million in investments that qualify for the tax credits, and about 40 companies are either at that limit or approaching it.

Kuglitsch’s bill would raise that limit to $12 million, which he said is aimed to help companies out of a funding gap known as the “valley of death.” The companies, he added, are no longer at the idea stage and are looking to grow their operations and add jobs.

“When they scale is when you see the big growth with job creation,” Kuglitsch said.

Another bill would create a grant program managed by the state Arts Board to help creative industries, which supporters said would help make Wisconsin more attractive to millennials.

One example they pointed to was the Confluence development project in Eau Claire, which includes a performing arts center and backers say will revamp the downtown area.

“We deserve for people to know that Wisconsin is a very creative place,” Arts Wisconsin Executive Director Anne Katz said. “We have got all of the resources that we need to really shine in that department. This is a very small investment for a very big payoff.”

Two other bills would boost help to Wisconsin’s industry clusters, including water tech, food packaging and information technology. One bill creates a 25 percent tax credit for any industry cluster research, while the other allows WEDC to give contracts to organizations such as the Milwaukee-based Water Council.

— By Polo Rocha,
WisBusiness.com