LRB-3127/1
MES:cdc
2019 - 2020 LEGISLATURE
October 14, 2019 - Introduced by Representatives Fields, Neylon, Bowen,
Considine, Crowley, Dittrich, Gruszynski, Ohnstad, Pope, Sinicki,
Skowronski, Steffen, Subeck, C. Taylor and VanderMeer, cosponsored by
Senators Kooyenga, Wanggaard and L. Taylor. Referred to Committee on
Jobs and the Economy.
AB538,1,8 1An Act to renumber and amend 66.1110 (4) (c); to amend 66.1109 (2) (c),
266.1109 (2m) (c), 66.1109 (4m) (c), 66.1110 (3) (c), 66.1110 (3) (e), 66.1110 (4m)
3(c), 66.1110 (5) and 66.1110 (6) (b) 3.; and to create 66.1109 (1) (ce), 66.1109 (3)
4(e), 66.1109 (6), 66.1110 (4) (c) 1., 66.1110 (4) (c) 2., 66.1110 (4) (cg), 66.1110 (4)
5(cr) and 66.1110 (4) (e) of the statutes; relating to: authorizing the creation of
6multijurisdictional business improvement districts, changes to public annual
7reports for neighborhood improvement districts, and changes to certain
8notifications for both types of districts.
Analysis by the Legislative Reference Bureau
Under current law, based on the receipt of a petition from certain business
owners in a designated area of a city, village, or town (municipality), a municipality
may create a business improvement district (BID), which consists of contiguous
parcels of land. A BID is governed by a board, whose members are appointed by the
creating municipality's chief executive officer (mayor, city manager, village
president, or town board chair). The board is required to adopt an initial operating
plan for the BID, and may make changes to the operating plan each year, subject to
the approval of the municipality's governing body.
Also under current law, a municipality may create a neighborhood
improvement district (NID), upon being petitioned to do so by an owner of real

property that is located in the proposed NID, if a number of steps are taken. In
general, a NID is an area within a municipality consisting of parcels that are nearby
to one another, but not necessarily contiguous, at least some of which are used for
residential purposes and are subject to general real estate taxes, and also may
include property that is acquired and owned by the NID board. A NID is governed
by a board, whose members are elected. A municipality may adopt an initial
operating plan for the NID, and the board may annually make changes to the
operating plan, subject to the approval of the municipality's governing body.
The creating municipality may impose special assessments on the property in
a BID or a NID, and may appropriate other money to such districts. All such funds
must be placed in a segregated account. Generally, the funds in the account must be
spent for the benefit of the BID or NID to put into effect its operating plan, and to
pay for certain required audits. Generally, the boards determine how such funds are
spent. The creating municipality may terminate such districts by following certain
procedures that are specified in the statutes.
Also under current law, the state, regional planning commissions, federally
recognized Indian tribes and bands, and local units of government, including
municipalities, counties, school districts, and other special purpose districts, may
enter into intergovernmental cooperation agreements for the receipt or furnishing
of services or joint exercise of powers. As part of an intergovernmental cooperation
agreement, these units of government may create a commission to perform the
service or exercise the joint power.
Subject to a number of conditions, this bill authorizes two or more
municipalities to create a single multijurisdictional BID (MJBID). The conditions
include a requirement that the district's borders contain contiguous territory in all
of the municipalities that are party to the agreement creating the MJBID. An
MJBID is governed by a single board whose members are appointed by the chief
executive officers of each of the municipalities that are part of a MJBID, and
confirmed by all the relevant local legislative bodies. All actions taken by the board
that require local legislative body approval, however, must be approved by all the
relevant local legislative bodies. If one or more such body does not approve within
approximately six months of the first approval of a local legislative body, the district
must terminate.
Under the bill, each municipality that is a part of the MJBID must impose,
collect, and deposit into its own municipal treasury all special assessments or other
funds that relate to properties that are located within its own jurisdiction. Also
under the bill, each municipality that is a part of the MJBID must provide any
required notices to all property owners whose property is located within its own
jurisdiction.
With regard to a BID, current law requires a board that had a cash balance of
less than $300,000 at all times during the prior fiscal year to include a reviewed
financial statement in its public annual report. If the cash balance equals or exceeds
$300,000 at any time during the prior fiscal year, the BID is required to include an
independent certified audit in its annual report. The reviewed financial statement
must be prepared in accordance with generally accepted accounting principles and

include a review of the financial statement by an independent certified public
accountant.
Current law requires a NID's board to include an independent certified audit
in its mandatory public annual report describing the current status of the NID,
irrespective of the cash balance in the NID's segregated account. This bill makes the
financial statement and audit requirements that currently apply to a BID apply in
the same way to a NID.
Finally, for BIDs and NIDs, the bill changes the requirement that certain
notices be sent by certified mail to a requirement that they must be sent by 1st class
mail. In addition, if a person to whom a notice must be sent owns multiple properties
in the BID or NID, the municipality may fulfill its notice requirements by sending
only one notice to the person. The notice must list all the affected properties or
parcels owned by the person.
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:
AB538,1 1Section 1 . 66.1109 (1) (ce) of the statutes is created to read:
AB538,3,42 66.1109 (1) (ce) “Commission" means a commission created by 2 or more
3municipalities by contract under s. 66.0301 to act as a board under this section for
4a multijurisdictional business improvement district as described under sub. (6).
AB538,2 5Section 2. 66.1109 (2) (c) of the statutes is amended to read:
AB538,4,26 66.1109 (2) (c) At least 30 days before creation of the business improvement
7district and adoption of its initial operating plan by the municipality, the planning
8commission has held a public hearing on its proposed business improvement district
9and initial operating plan. Notice of the hearing shall be published as a class 2 notice
10under ch. 985. Before publication, a copy of the notice together with a copy of the
11proposed initial operating plan and a copy of a detail map showing the boundaries
12of the proposed business improvement district shall be sent by certified 1st class mail
13to all owners of real property within the proposed business improvement district.
14The notice shall state the boundaries of the proposed business improvement district

1and shall indicate that copies of the proposed initial operating plan are available
2from the planning commission on request.
AB538,3 3Section 3. 66.1109 (2m) (c) of the statutes is amended to read:
AB538,4,114 66.1109 (2m) (c) At least 30 days before annexation of the territory, the
5planning commission has held a public hearing on the proposed annexation. Notice
6of the hearing shall be published as a class 2 notice under ch. 985. Before publication,
7a copy of the notice together with a copy of a detail map showing the boundaries of
8the territory proposed to be annexed to the business improvement district shall be
9sent by certified 1st class mail to all owners of real property within the territory
10proposed to be annexed. The notice shall state the boundaries of the territory
11proposed to be annexed.
AB538,4 12Section 4 . 66.1109 (3) (e) of the statutes is created to read:
AB538,4,1413 66.1109 (3) (e) With regard to any 1st class mailings that are required to be sent
14under this section:
AB538,4,1615 1. The mailings shall be sent by the municipality itself or by a mailing house
16service selected by the municipality.
AB538,4,2017 2. The municipality may fulfill any notification requirements by sending only
18one notice to any person who owns multiple properties within the business
19improvement district. The notice shall list all affected properties or parcels owned
20by the person.
AB538,5 21Section 5. 66.1109 (4m) (c) of the statutes is amended to read:
AB538,5,522 66.1109 (4m) (c) Within 30 days after the filing of a petition under this
23subsection, the planning commission shall hold a public hearing on the proposed
24termination. Notice of the hearing shall be published as a class 2 notice under ch.
25985. Before publication, a copy of the notice together with a copy of the operating plan

1and a copy of a detail map showing the boundaries of the business improvement
2district shall be sent by certified 1st class mail to all owners of real property within
3the business improvement district. The notice shall state the boundaries of the
4business improvement district and shall indicate that copies of the operating plan
5are available from the planning commission on request.
AB538,6 6Section 6 . 66.1109 (6) of the statutes is created to read:
AB538,5,107 66.1109 (6) (a) Subject to the requirements of this section and the modifications
8of the requirements in this subsection, 2 or more municipalities may jointly create
9a single multijurisdictional business improvement district under this section if all
10of the following apply:
AB538,5,1211 1. The district's borders contain territory in all of the municipalities that are
12a part of the district.
AB538,5,1313 2. The district is contiguous.
AB538,5,1514 3. At least one parcel in each participating municipality touches at least one
15parcel in at least one of the other municipalities.
AB538,5,1816 4. At least one owner of real property used for commercial purposes in each of
17the municipalities that are a part of the district takes the action described in sub. (2)
18(a).
AB538,5,2019 5. The planning commission of each of the municipalities that are a part of the
20district adopts under sub. (2) (b) identical initial operating plans for the district.
AB538,5,2321 6. The local legislative body of each of the municipalities that are a part of the
22district adopts under sub. (2) (e) identical initial operating plans for each
23municipality.
AB538,5,2524 (b) 1. The hearing described under sub. (2) (c) may be a joint hearing held by
25all of the involved planning commissions.
AB538,6,5
12. Each municipality that is a part of the district shall be responsible for
2complying with the notice requirements described under sub. (3) (e) for property or
3parcels that are located within its own jurisdiction, and for determining whether the
4thresholds described in subs. (2) (d) and (4m) are met with regard to owners of
5property that is located within its own jurisdiction.
AB538,6,96 3. The chief executive officers of each of the municipalities that are a part of the
7district shall enter into an agreement which specifies how the members of the board
8shall be appointed under sub. (3) (a). All board members shall be confirmed by each
9local legislative body.
AB538,6,1610 4. The board, or each municipality that is a part of the district, shall conduct
11all functions described under sub. (3) except that to take effect, any actions which
12require local legislative body approval under sub. (3) must be approved by the local
13legislative body of each of the municipalities that is a part of the district. If one or
14more local legislative bodies fail to approve an item that must be so approved, as
15described in sub. (3), before the first day of the 7th month beginning after the first
16local legislative body approves the item, the district shall terminate.
AB538,6,2417 5. Each municipality shall be responsible, as described under sub. (4), for
18imposing, collecting, and depositing special assessments for those parts of the
19district's property that are located within its own jurisdiction, and for depositing all
20other appropriations or other monies received by the municipality, as described
21under sub. (4), that relate to property that is located within its own jurisdiction.
22Funds collected by each municipality that is a part of the district shall be deposited
23by that municipality into a segregated account at a financial institution of the
24municipality's choice.
AB538,7,2
16. A multijurisdictional business improvement district may not be converted
2into a neighborhood improvement district under sub. (4g).
AB538,7 3Section 7. 66.1110 (3) (c) of the statutes is amended to read:
AB538,7,154 66.1110 (3) (c) At least 30 days before creation of the neighborhood
5improvement district and adoption of its initial operating plan by the municipality,
6the planning commission has held a public hearing on its proposed neighborhood
7improvement district and initial operating plan. Notice of the hearing shall be
8published as a class 2 notice under ch. 985. Before publication, a copy of the notice,
9together with a copy of the proposed initial operating plan and a copy of a detail map
10showing the boundaries of the proposed neighborhood improvement district, shall be
11sent by certified 1st class mail to all owners of real property within the proposed
12neighborhood improvement district. The notice shall state the boundaries of the
13proposed neighborhood improvement district and shall indicate that copies of the
14proposed initial operating plan are available from the planning commission on
15request.
AB538,8 16Section 8. 66.1110 (3) (e) of the statutes is amended to read:
AB538,7,2317 66.1110 (3) (e) The local legislative body has voted to adopt the proposed initial
18operating plan for the neighborhood improvement district. The local legislative body
19shall publish a class 2 notice under ch. 985 regarding the meeting at which the local
20legislative body will vote on whether to adopt the proposed initial operating plan for
21the neighborhood improvement district. Before publication, a copy of the notice shall
22be sent by certified 1st class mail to all owners of real property within the proposed
23neighborhood improvement district.
AB538,9 24Section 9. 66.1110 (4) (c) of the statutes is renumbered 66.1110 (4) (c) (intro.)
25and amended to read:
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