2017 - 2018 LEGISLATURE
March 29, 2017 - Introduced by Senators Carpenter, C. Larson, Wirch,
Ringhand and Miller, cosponsored by Representatives Sargent, Horlacher,
Spreitzer, Anderson, Berceau, Milroy, Sinicki, Pope, Kolste, Vruwink, C.
Taylor, Billings, Wachs, Young, Bowen, Subeck and Considine. Referred to
Committee on Government Operations, Technology and Consumer
1An Act to create
66.0602 (3) (e) 10. and 121.91 (4) (om) of the statutes; relating
2to: revenue limit adjustment for a school district for costs incurred to remediate
3lead contamination in drinking water and exceptions from local levy limits for
4lead pipe water service line replacement purposes.
Analysis by the Legislative Reference Bureau
This bill creates a revenue limit adjustment for a school district that incurs
costs to remediate lead contamination in water used for drinking and food
preparation in the school district, including costs to test for the presence of lead in
the water, provide potable water, and replace pipes, drinking fountains, and
plumbing fixtures. Current law generally limits the total amount of revenue per
pupil a school district may receive from general school aids and property taxes in a
school year to the amount of revenue received per pupil in the previous school year.
Under the bill, a school district that adopts a resolution to undertake a project to
remediate lead contamination may increase its revenue limit by the amount the
school district spends on the improvements in a school year, including amounts spent
for debt service on a bond, note, or state trust fund loan used to finance the project.
The term of the bond, note, or trust fund loan may not exceed 20 years.
This bill also creates an exception to the levy limits for cities, villages, towns,
and counties for amounts levied for purposes related to the replacement of lead pipe
water service lines owned by the political subdivision.
Generally under current law, local levy limits are applied to the property tax
levies that are imposed in December of each year. Current law prohibits any political
subdivision from increasing its levy by a percentage that exceeds its “valuation
factor," which is defined as the greater of either zero percent or the percentage change
in the political subdivision's equalized value due to new construction, less
improvements removed. In addition, the calculation of a political subdivision's levy
does not include any tax increment that is generated by a tax incremental district.
Current law contains a number of exceptions to the levy limit, such as amounts
a county levies for a countywide emergency medical system, for a county children
with disabilities education board, and for certain bridge and culvert construction and
repair. In addition, a political subdivision may exceed the levy limit that is otherwise
applicable if its governing body adopts a resolution to do so and if that resolution is
approved by the electors in a referendum.
This bill creates another exception to local levy limits. Under the bill, amounts
levied by a political subdivision for purposes related to certain lead pipe water
service lines do not apply to the levy limit that is otherwise applicable. The bill first
applies to a levy that is imposed in December 2017.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
66.0602 (3) (e) 10. of the statutes is created to read:
(e) 10. The amount that a political subdivision levies in that year 3
for purposes related to the replacement of lead pipe water service lines owned by the 4
121.91 (4) (om) of the statutes is created to read:
(om) 1. If a school board adopts a resolution to do so, the limit 7
otherwise applicable to a school district under sub. (2m) in any school year is 8
increased by the amount spent by the school district in that school year on a project, 9
including the payment of debt service on a bond or note issued, or a state trust fund 10
loan obtained, to finance the project, to remediate lead contamination in water used 11
for drinking or food preparation in the school district. In this subdivision, the 12
amount spent by the school district includes costs incurred by the school district to 13
test for the presence of lead in water used for drinking or food preparation in school
buildings in the school district, install a lead filtration device on a water fountain or 2
tap used to provide water used for drinking or food preparation, provide potable 3
water to affected school buildings during remediation, and, if necessary, to replace 4
drinking fountains, pipes, solders, pipe fittings, and plumbing fixtures to and within 5
affected school buildings in the school district. The term of a bond or note issued or 6
state trust fund loan obtained to finance a project under this subdivision may not 7
exceed 20 years. If a school board issues a bond or note or obtains a state trust fund 8
loan to finance a project described in this subdivision, a resolution adopted by a 9
school board under this subdivision is valid for each school year in which the school 10
board pays debt service on the bond, note, or state trust fund loan.
2. Any additional revenue received by a school district under this paragraph 12
shall not be included in the base for determining the school district's limit under sub. 13
(2m) for the following school year.
(1) The treatment of section 66.0602 (3) (e) 10. of the statutes first applies to 16
a levy that is imposed in December 2017.