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A bipartisan proposal making it a felony to defraud the Wisconsin Economic Development Corp. was reintroduced Friday, almost two years after the Wisconsin State Journal reported on a failed $500,000 loan to a Milwaukee businessman who lied on his application.

The bill, co-sponsored by Rep. Samantha Kerkman, R-Salem Lakes, and Sen. Dave Hansen, D-Green Bay, would make defrauding the state’s flagship job-creation agency a Class E felony punishable by up to 10 years in prison and five years of extended supervision and/or a $50,000 fine. Offenders and their companies would also be ineligible for WEDC benefits for seven years and could be liable for damages.

A similar bill passed the Assembly last session but never received a hearing in the Senate Committee on Economic Development, Commerce and Local Government. The previous chairman of that committee, former Sen. Rick Gudex, died last year. His successor, Sen. Dan Feyen, R-Fond du Lac, didn’t respond to a request for comment.

The previous bill faced opposition from the Wisconsin Economic Development Association, which warned the bill could have a chilling effect on legitimate businesses seeking financial aid but worried inaccurate projections about job creation would be punished.