SE5 AB1: Bill Text

Under current law, these economic development projects are included in determining compliance with an overall $200,000,000 cap on WHEDA economic development loans. This bill amends this overall cap to exclude bonds issued for these economic development projects involving sports and entertainment home stadiums.

Taxation authority

The bill permits a district to impose a room tax on hotel and motel rooms within its jurisdiction in an amount not to exceed 1% of total room charges. The room tax may only be used for the district's debt service on its bond obligations. In general, the room tax may no longer be collected after the bonds, to which the proceeds of the tax are dedicated, are retired.

The bill also authorizes a district to impose a sales tax and a use tax at a rate of no more than 0.1%.

The bill exempts the income of a district from the income tax and the franchise tax, and it exempts the interest on a district's bonds from the income tax.

Provision of services

The bill permits DOA to provide any services to a district, including engineering, design and building construction services, upon request of the district, for compensation agreed upon between DOA and the district, if the district has entered into an agreement with DOA for the lease of land or other property granted to the state, especially dedicated by the grant to use for a professional baseball park. Other state agencies may provide assistance to the district, if a lease with DOA has been entered into.

Contracting

The bill provides that a local professional baseball park district may enter into contracts without limitation or restriction and, if the district has entered into an agreement with DOA for the lease of land or other property granted to the state, especially dedicated by the grant to use for a professional baseball park, the district may utilize the services of DOA to let contracts for engineering, architectural or construction work. Whether the district contracts independently or through DOA, the district is not subject to any state requirements for public notice of proposed contracts, competitive bidding, contractual service procurement procedures, preference for procurements from Wisconsin firms, preferences for purchases of American-made or recycled or recovered materials or preferences for purchases from the department of corrections or from handicapped work centers or nondiscrimination in contracting. A district and DOA are, however, directed to attempt to ensure that at least 15% of the total dollar amount of any contracts let by the district in each state fiscal year for the initial construction of baseball park facilities is awarded to minority-owned businesses.

Finances

The bill appropriates $300,000 in state general purpose revenue for DOA to provide a loan to a local professional baseball park district in the 1995-97 state fiscal biennium for initial operating costs of the district, upon such terms and conditions as the secretary of administration specifies. Any such loan must be repaid no later than June 30, 1997.

Under the bill, a local professional baseball park district is permitted to invest its moneys in the local government pooled-investment fund, which is managed by the state investment board.

Highway improvements

The bill authorizes the state to expend $211,103,700 in fiscal year 1995-96 and $220,103,700 in fiscal year 1996-97 for highway improvements, of which not more than $3,000,000 in fiscal year 1995-96 and not more than $12,000,000 in fiscal year 1996-97 may be expended for state highway rehabilitation associated with the construction of a new baseball stadium to be used by the Milwaukee Brewers.

Sales of surplus state land and grants to the state

Currently, any sale of surplus state land having a fair market value of at least $20,000 is subject to approval of the joint committee on finance. Unless otherwise provided, a grant of land or other property made to the state is valid only upon approval of the joint committee on finance. The bill provides that the building commission may sell or transfer surplus state land to a local professional baseball park district and DOA may accept a grant of land or other property to the state for purposes of use for a professional baseball park without approval of the joint committee on finance.

Open meetings and records, audits, ethics

Laws requiring, with certain exceptions, open meetings of governmental bodies and public access to public records apply to a district. The legislative audit bureau is permitted to audit the records of a district. Members of the board of directors of a district are subject to the statutory code of ethics for local public officials.

Other

Current law provides that, if a tenant who is required to construct improvements exceeding $50,000 at the tenant's own expense on land leased to the tenant under a lease with a term of 30 years or more defaults or breaches a condition of the lease, the landlord may commence an action to recover the property after a one-year redemption period free from all liens, claims or demands of the tenant in the same manner as a mortgage foreclosure except without a sale of the property. The bill creates an exception under that statute for leases to which a district is a party.

This bill will be referred to the joint survey committee on tax exemptions for a detailed analysis, which will be printed as an appendix to this bill.

For further information see the state and 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:

AB1, s. 1 Section 1. 13.48 (14) (d) 4. of the statutes is amended to read:

AB1,6,12 13.48 (14) (d) 4. If Except as provided in subd. 5., if the commission proposes to sell or transfer a parcel of surplus land having a fair market value of at least $20,000, the commission shall notify the joint committee on finance in writing of its proposed action. If the cochairpersons of the committee do not notify the commission that the committee has scheduled a meeting for the purpose of reviewing the proposed sale or transfer within 14 working days after the date of the commission's notification, the parcel may be sold or transferred by the commission. If, within 14 working days after the date of the commission's notification, the cochairpersons of the committee notify the commission that the committee has scheduled a meeting for the purpose of reviewing the proposed sale or transfer, the parcel may be sold or transferred under this subdivision only upon approval of the committee.

AB1, s. 2 Section 2. 13.48 (14) (d) 5. of the statutes is created to read:

AB1,6,16 13.48 (14) (d) 5. The commission may sell or transfer a parcel of surplus land to a local professional baseball park district created under subch. III of ch. 229 without notification or approval under subd. 4.

AB1, s. 3 Section 3. 16.40 (15m) of the statutes is created to read:

AB1,7,4 16.40 (15m) Loan to local professional baseball park district. From the appropriation under s. 20.505 (1) (fm), provide a loan to any local professional baseball park district created under subch. III of ch. 229, upon request of the district, for initial operating costs of the district. Any loan made under this subsection shall be made upon the terms and conditions that the secretary specifies, except that the secretary shall require any loan made under this subsection to be repaid no later than June 30, 1997.

AB1, s. 4 Section 4. 16.40 (15m) of the statutes, as created by 1995 Wisconsin Act .... (this act), is repealed.

AB1, s. 5 Section 5. 16.70 (14) of the statutes is amended to read:

AB1,7,9 16.70 (14) "State" does not include a district created under subch. II or III of ch. 229.

AB1, s. 6 Section 6. 16.82 (6) of the statutes is created to read:

AB1,7,15 16.82 (6) May provide any services to a local professional baseball park district created under subch. III of ch. 229, for compensation to be agreed upon between the department and the district, if the district has entered into a lease agreement with the department under sub. (7). No order or contract to provide any such services is subject to s. 16.705, 16.75 (1) to (5) and (8) to (10), 16.752, 16.754 or 16.765.

AB1, s. 7 Section 7. 16.82 (7) of the statutes is created to read:

AB1,7,21 16.82 (7) May enter into a lease agreement with a local professional baseball park district created under subch. III of ch. 229 for the lease of land or other property granted to the state and especially dedicated by the grant to use for a professional baseball park. The lease agreement may be for such rental payments and for such term as the secretary determines.

AB1, s. 8 Section 8. 16.854 of the statutes is created to read:

AB1,8,19 16.854 Services provided to professional baseball park districts. The department may, upon request of any local professional baseball park district, if the district has entered into a lease agreement with the department under s. 16.82 (7), take charge of and supervise engineering or architectural services or construction work, as defined in s. 16.87, performed by, or for, the district for compensation to be agreed upon between the department and the district. In connection with such services or work, the department may furnish engineering, architectural, project management and other building construction services whenever requisitions therefor are presented to the department by the district. If the district has entered into a lease agreement with the department under s. 16.82 (7), the department may also assist the district, upon request of the district, in letting contracts for engineering, architectural or construction work authorized by law and in supervising the work done thereunder. The department may award any such contract for any combination or division of work it designates and may consider any factors in awarding a contract including price, time for completion of work and the qualifications and past performance of a contractor. In awarding contracts under this section for the initial construction of baseball park facilities, as defined in s. 229.65 (1), the department shall attempt to ensure that at least 15% of the total amount expended under the contracts in each fiscal year is awarded to contractors and subcontractors which are minority businesses, as defined in s. 16.75 (3m) (a). Sections 16.85, 16.855 and 16.87 do not apply to services provided or contracted by the department under this section.

AB1, s. 9 Section 9. 18.03 (5s) of the statutes is created to read:

AB1,8,23 18.03 (5s) Upon the request of a local professional baseball park district created under subch. III of ch. 229, the commission may serve as financial consultant to assist and coordinate the issuance of the bonds of a district.

AB1, s. 10 Section 10. 19.42 (13) (a) of the statutes is amended to read:

AB1,9,4 19.42 (13) (a) All positions to which individuals are regularly appointed by the governor, except the position of trustee of any private higher educational institution receiving state appropriations and the position of member of the district board of a local professional baseball park district created under subch. III of ch. 229.

AB1, s. 11 Section 11. 20.005 (3) (schedule) of the statutes, as it affects 20.395 (3) (cq) of the statutes, is repealed and recreated to read: - See PDF for table

AB1, s. 12 Section 12. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table - See PDF for table

AB1, s. 13 Section 13. 20.505 (1) (fm) of the statutes is created to read:

AB1,10,4 20.505 (1) (fm) Loan to local professional baseball park district. Biennially, the amounts in the schedule to provide a loan to any local professional baseball park district under s. 16.40 (15m). No moneys may be encumbered from this appropriation after June 30, 1997.

AB1, s. 14 Section 14. 20.505 (1) (fm) of the statutes, as created by 1995 Wisconsin Act .... (this act), is repealed.

AB1, s. 15 Section 15. 20.505 (1) (ka) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB1,10,18 20.505 (1) (ka) (title) Materials and services to state agencies and certain districts. The amounts in the schedule to provide services primarily to state agencies or local professional baseball park districts created under subch. III of ch. 229, other than services specified in pars. (im), (is) and (kb) to (kr) and subs. (2) (k) and (5) (ka), and to repurchase inventory items sold primarily to state agencies or such districts. All moneys received from the provision of services primarily to state agencies and such districts and from the sale of inventory items primarily to state agencies and such districts, other than moneys received and disbursed under pars. (im), (is) and (kb) to (kr) and subs. (2) (k) and (5) (ka), shall be credited to this appropriation account.

AB1, s. 16 Section 16. 20.505 (1) (kc) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB1,11,2 20.505 (1) (kc) Capital planning and building construction services. The amounts in the schedule to provide capital planning services under s. 13.48 (5) and building construction services under subch. V of ch. 16 on behalf of state agencies and local professional baseball park districts created under subch. III of ch. 229. The secretary of administration may credit moneys received for the provision of building construction and capital planning services on behalf of state agencies and such districts to this appropriation account.

AB1, s. 17 Section 17. 20.566 (1) (gd) of the statutes is created to read:

AB1,11,8 20.566 (1) (gd) Administration of special district taxes. From the moneys received from the appropriation account under s. 20.835 (4) (gb), the amounts in the schedule for the purpose of administering the special district taxes imposed under s. 77.705 by a district created under subch. III of ch. 229 and the room tax imposed under s. 66.75 (1m) (a) by a district created under subch. III of ch. 229.

AB1, s. 18 Section 18. 20.835 (4) (g) of the statutes is amended to read:

AB1,11,15 20.835 (4) (g) County taxes. All moneys received from the taxes imposed under subch. V of ch. 77 s. 77.70 for distribution to the counties that enact an ordinance imposing taxes under that subchapter section and for interest payments on refunds under s. 77.76 (3), except that 1.5% of those tax revenues collected under that subchapter section shall be credited to the appropriation account under s. 20.566 (1) (g).

AB1, s. 19 Section 19. 20.835 (4) (gb) of the statutes is created to read:

AB1,12,2 20.835 (4) (gb) Special district taxes. All moneys received from the taxes imposed under s. 77.705 and from taxes imposed by a local professional baseball park district under s. 66.75 (1m) (a), for the purpose of distribution to the special districts that adopt a resolution imposing taxes under subch. V of ch. 77 and under s. 66.75 (1m) (em), and for the purpose of financing a local professional baseball park district, except that of those tax revenues collected under subch. V of ch. 77 3% for the first 2 years of collection and 1.5% thereafter shall be credited to the appropriation account under s. 20.566 (1) (gd) and except that of those tax revenues collected under s. 66.75 (1m) (em) 3% for the first 2 years of collection and 1.5% thereafter shall be credited to the appropriation account under s. 20.566 (1) (gd).

AB1, s. 20 Section 20. 20.907 (1e) of the statutes is created to read:

AB1,12,7 20.907 (1e) Professional baseball parks. The department of administration may accept a grant of land or other property to the state for purposes of use for a professional baseball park. Upon acceptance, the grant is legal and valid and the department shall execute and enforce the terms of the grant.

AB1, s. 21 Section 21. 24.61 (2) (a) 7. of the statutes is created to read:

AB1,12,10 24.61 (2) (a) 7. Bonds issued by a local professional baseball park district created under subch. III of ch. 229.

AB1, s. 22 Section 22. 25.17 (3) (b) 10. of the statutes is created to read:

AB1,12,13 25.17 (3) (b) 10. Bonds issued by a local professional baseball park district created under subch. III of ch. 229.

AB1, s. 23 Section 23. 25.50 (1) (d) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB1,12,23 25.50 (1) (d) "Local government" means any county, town, village, city, power district, sewerage district, drainage district, town sanitary district, public inland lake protection and rehabilitation district, local professional baseball park district created under subch. III of ch. 229, public library system, school district or technical college district in this state, any commission, committee, board or officer of any governmental subdivision of this state, any court of this state, other than the court of appeals or the supreme court, or any authority created under s. 231.02, 233.02 or 234.02.

AB1, s. 24 Section 24. 66.04 (2) (a) 3p. of the statutes is created to read:

AB1,13,2 66.04 (2) (a) 3p. Bonds issued by a local professional baseball park district created under subch. III of ch. 229.

AB1, s. 25 Section 25. 66.066 (1) (a) of the statutes is amended to read:

AB1,13,13 66.066 (1) (a) "Municipality" means any city, village, town, county, commission created by contract under s. 66.30, public inland lake protection and rehabilitation district established under s. 33.23, 33.235 or 33.24, metropolitan sewerage district created under ss. 66.20 to 66.26 or 66.88 to 66.918, town sanitary district under subch. IX of ch. 60, a local professional baseball park district created under subch. III of ch. 229 or a municipal water district or power district under ch. 198 and any other public or quasi-public corporation, officer, board or other public body empowered to borrow money and issue obligations to repay the same out of revenues. "Municipality" does not include the state or a local exposition district created under subch. II of ch. 229.

AB1, s. 26 Section 26. 66.066 (1) (c) of the statutes is amended to read:

AB1,13,19 66.066 (1) (c) "Revenue" means all moneys received from any source by a public utility and all rentals and fees and in the case of a local professional baseball park district created under subch. III of ch. 229 includes tax revenues deposited into a special fund under s. 229.685 and payments made into a special debt service reserve fund under s. 229.74.

AB1, s. 27 Section 27. 66.066 (5) of the statutes is created to read:

AB1,13,22 66.066 (5) Revenue bonds issued by a local professional baseball park district created under subch. III of ch. 229 are subject to the provisions in ss. 229.72 to 229.81.

AB1, s. 28 Section 28. 66.067 of the statutes is amended to read:

AB1,14,6 66.067 Public works projects. For financing purposes, garbage incinerators, toll bridges, swimming pools, tennis courts, parks, playgrounds, golf links, bathing beaches, bathhouses, street lighting, city halls, village halls, town halls, courthouses, jails, schools, cooperative educational service agencies, hospitals, homes for the aged or indigent, regional projects, waste collection and disposal operations, systems of sewerage, local professional baseball park facilities and any and all other necessary public works projects undertaken by any municipality are public utilities within the meaning of s. 66.066.

AB1, s. 29 Section 29. 66.30 (1) (a) of the statutes is amended to read:

AB1,14,16 66.30 (1) (a) In this section "municipality" means the state or any department or agency thereof, or any city, village, town, county, school district, public library system, public inland lake protection and rehabilitation district, sanitary district, farm drainage district, metropolitan sewerage district, sewer utility district, solid waste management system created under s. 59.07 (135), local exposition district created under subch. II of ch. 229, local professional baseball park district created under subch. III of ch. 229, water utility district, mosquito control district, municipal electric company, county or city transit commission, commission created by contract under this section, taxation district or regional planning commission.

AB1, s. 30 Section 30. 66.75 (1) (bm) of the statutes is created to read:

AB1,14,19 66.75 (1) (bm) "Local professional baseball park district" has the meaning given for "district" in s. 229.65 (5).

AB1, s. 31 Section 31. 66.75 (1m) (a) of the statutes is amended to read:

AB1,15,10 66.75 (1m) (a) The governing body of a municipality may enact an ordinance, and a district, under par. (e), and a local professional baseball park district, under par. (em), may adopt a resolution, imposing a tax on the privilege of furnishing, at retail, except sales for resale, rooms or lodging to transients by hotelkeepers, motel operators and other persons furnishing accommodations that are available to the public, irrespective of whether membership is required for use of the accommodations. Any tax imposed under this paragraph is not subject to the selective sales tax imposed by s. 77.52 (2) (a) 1. and may not be imposed on sales to the federal government and persons listed under s. 77.54 (9a). Any tax imposed under this paragraph by a municipality shall be paid to the municipality and may be forwarded to a commission if one is created under par. (c), as provided in par. (d). Except as provided in par. (am), any tax imposed under this paragraph by a municipality may not exceed 8%. Except as provided in par. (am), if a tax greater than 8% under this paragraph is in effect on May 13, 1994, the municipality imposing the tax shall reduce the tax to 8%, effective on June 1, 1994.

AB1, s. 32 Section 32. 66.75 (1m) (em) of the statutes is created to read:

AB1,15,18 66.75 (1m) (em) A local professional baseball park district may adopt a resolution under s. 229.68 (15) imposing a room tax under par. (a) in an amount not to exceed 1% of total room charges. The resolution shall be effective on the first day of the first month that begins at least 30 days after the adoption of the resolution. A room tax imposed by a local professional baseball park district under this paragraph applies within the local professional baseball park district's jurisdiction, as specified in s. 229.67.

AB1, s. 33 Section 33. 66.75 (1m) (fm) of the statutes is created to read:

AB1,15,22 66.75 (1m) (fm) 1. The department of revenue shall administer the tax that is imposed under par. (a) by a local professional baseball park district and may take any action, conduct any proceeding and impose interest and penalties.

AB1,16,2 2. Sections 77.51 (14) (c), (f) and (j) and (14g), 77.52 (3), (4), (6) and (18), 77.58 (1) to (5) and (7), 77.59, 77.60, 77.61 (2), (5), (8), (9) and (12) to (14) and 77.62, as they apply to the taxes under subch. III of ch. 77, apply to the tax described under subd. 1.

AB1,16,17 3. From the appropriation under s. 20.835 (4) (gb), the department of revenue, for the first 2 years of collection, shall distribute 97% of the taxes collected under this paragraph to the local professional baseball park district, no later than the end of the month following the end of the calendar quarter in which the amounts were collected. From the appropriation under s. 20.835 (4) (gb), the department of revenue, after the first 2 years of collection, shall distribute 98.5% of the taxes collected under this paragraph to the local professional baseball park district, no later than the end of the month following the end of the calendar quarter in which the amounts were collected. The taxes distributed shall be increased or decreased to reflect subsequent refunds, audit adjustments and all other adjustments. Interest paid on refunds of the tax under this paragraph shall be paid from the appropriation under s. 20.835 (4) (gb) at the rate under s. 77.60 (1) (a). If the local professional baseball park district receives a report along with a payment under this subdivision or subd. 2., the local professional baseball park district is subject to the duties of confidentiality to which the department of revenue is subject under s. 77.61 (5).