AB303: Bill Text

LRB-1465/1

MGG/JK:wlj:rs

2003 - 2004 LEGISLATURE

2003 Assembly BILL 303

April 29, 2003 - Introduced by Representatives Albers, Hundertmark, Hines, LeMahieu, Owens, Townsend and Van Roy. Referred to Committee on Natural Resources.

AB303,1,10 An Act to repeal 70.114 (1) (d); to renumber 23.14 and 70.114 (1) (a); to renumber and amend 23.0917 (7) (a), 23.0917 (7) (f) 1. and 23.0917 (7) (f) 2.; to amend 23.0917 (1) (d), 23.0917 (6) (a), 23.0917 (8) (d) and 70.114 (1) (b); and to create 23.0917 (1) (h), 23.0917 (6) (d), 23.0917 (6) (e), 23.0917 (6) (f), 23.0917 (7) (ab) (intro.), 1., 2. and 4., 23.0917 (7) (ag), 23.0917 (7) (g), 23.0917 (8) (am), 23.0917 (8) (e), 23.0918 (8) (f), 23.14 (2) and 70.114 (1) (ad) of the statutes; relating to: requirements, prohibitions, and procedures relating to land acquisition under the Warren Knowles-Gaylord Nelson Stewardship 2000 program; acquisitions of land and interests of land by the Department of Natural Resources; and aid in lieu of property taxes related to acquired land.

Analysis by the Legislative Reference Bureau

Current general law

Current law authorizes the state to incur pubic debt for certain conservation activities under the stewardship program, which is administered by the Department of Natural Resources (DNR). The state may incur this debt to acquire land for the state for conservation purposes and may award grants or state aid to certain local governmental units, including the Kickapoo Reserve Management Board, and nonprofit conservation organizations to acquire lands for these purposes (stewardship acquisitions).

Calculating acquisition costs for stewardship acquisitions

Under current law, a grant or state aid to a local governmental unit or nonprofit conservation organization for a stewardship acquisition may not exceed 50% of the acquisition costs of the land. For most acquisitions, the acquisition cost is the fair market value of the land, plus other acquisition costs as determined by rule by DNR. This bill requires that fair market value be based on the adjusted highest and best use of the land and requires taxation districts upon request of persons preparing appraisals to prepare statements specifying the highest and best use. Under the bill, the adjusted highest and best use is the probable and legal use of the land that results in the highest fair market value regardless of how it is currently zoned. The bill also prohibits considering as part of the acquisition costs the value of any other land donated to the recipient of the grant or state aid by the seller of the land being acquired.

As for land acquired directly by the state, the bill requires that the fair market value of such land be determined in the same manner as it is for acquisitions by local governmental units and nonprofit conservation organizations.

Review by Joint Committee on Finance of stewardship acquisitions

Under current law, the Joint Committee on Finance (JCF) may schedule a meeting to review any proposed stewardship acquisition that costs more than $250,000. This bill imposes additional requirements on stewardship acquisitions subject to this review. These requirements consist of the following:

1. DNR must provide information to JCF concerning the land's assessed value, copies of all the appraisals in its possession, and a copy of the statement prepared by the tax district concerning the land's highest and best use.

2. If the acquisitions costs of the land may equal or exceed an amount equal to four times the land's assessed value, JCF must schedule a meeting to review the proposed acquisition. DNR must provided the information it provides to JCF to the Department of Revenue (DOR) and the taxation districts in which the land is located. If the acquisition is approved by JCF, each taxation district must perform a reassessment of all of the land that is located in that taxation district that will be affected by the stewardship acquisition. If the acquisition costs will equal or exceed an amount equal to five times the land's assessed value, DNR may not use stewardship funding for this acquisition.

Calculation of property tax for stewardship acquisitions

Under current law, DNR must provide the assessor of each local taxation district in which the proposed stewardship acquisition is located a copy of each appraisal in DNR's possession that was prepared to determine the fair market value of the land within 30 days after the debt is incurred. An assessor receiving these appraisals must use them to value the land for property tax purposes.

Under current law, a taxation district may not impose a property tax on land purchased by DNR. Instead, the taxation district receives a payment from the state based on the land's estimated value. For the year in which the land is purchased, "estimated value" means the land's purchase price. Under this bill, for the year in which the land is purchased and for land purchased after June 30, 2004, "estimated value" means the land's assessed value as determined by the most recent property tax assessment or by an assessment that is prepared within 30 days from the date of the land's purchase and that is based on DNR's intended use of the land.

Other provisions

The bill prohibits the expenditure of stewardship funding under the following circumstances:

1. The expenditure would be for the acquisition of an easement or development right in land if the term of the easement or development right is for more than 30 years.

2. The expenditure is for a grant or state aid to a local governmental unit or nonprofit conservation organization and unless the expenditure has been approved by the Natural Resources Board not later than 365 days after the date on which the governmental unit or nonprofit conservation organization acquires title to the land.

3. The expenditure is for an acquisition that will result in an adjacent landowner not having access to the landowner's land or that will result in the landowner's having to pay for an easement access to the landowner's land.

4. The expenditure would be for an acquisition by DNR in a county where at least 50% of the land is owned or under the jurisdiction of the state, the federal government, or a local governmental unit (public land). Current law prohibits such expenditures when at least 66% of the land is public land. Current law provides an exemption when the county board of supervisors approves the acquisition. This bill eliminates that exemption.

The bill also defines "land" for purposes of the stewardship program to specifically include buildings and other structures and facilities located on the land.

Finally, under the bill, before the acquisition of any land or interest in land by DNR, DNR shall notify in writing each county and each city, village, or town in which the land or interest in land is located at least 30 days before such acquisition.

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:

AB303, s. 1 Section 1. 23.0917 (1) (d) of the statutes is amended to read:

AB303,3,4 23.0917 (1) (d) "Land" means land in fee simple, conservation easements, other easements in land and development rights in land, and includes any buildings, facilities, and other structures located on the land.

AB303, s. 2 Section 2. 23.0917 (1) (h) of the statutes is created to read:

AB303,4,5 23.0917 (1) (h) "Stewardship acquisition" means the acquisition of land using moneys obligated from the appropriation under s. 20.866 (2) (ta) for an acquisition of land by the department or for a grant or state aid for acquisition of land by a governmental unit under s. 23.09 (19), (20), or (20m) or 30.277 or by a nonprofit conservation organization under s. 23.096.

AB303, s. 3 Section 3. 23.0917 (6) (a) of the statutes is amended to read:

AB303,4,9 23.0917 (6) (a) 1. The department may not obligate from the appropriation under s. 20.866 (2) (ta) for a given project or activity any moneys unless it first notifies the joint committee on finance in writing of the proposal.

AB303,4,13 2. If the cochairpersons of the committee do not notify the department within 14 working days after the date of the department's notification under subd. 1. that the committee has scheduled a meeting to review the proposal, the department may obligate the moneys, unless par. (f) applies.

AB303,4,17 3. If, within 14 working days after the date of the notification by the department under subd. 1., the cochairpersons of the committee notify the department that the committee has scheduled a meeting to review the proposal, the department may obligate the moneys only upon approval of the committee.

AB303, s. 4 Section 4. 23.0917 (6) (d) of the statutes is created to read:

AB303,4,22 23.0917 (6) (d) For any stewardship acquisition that is subject to review by the joint committee on finance under this subsection, the department shall submit to the committee written information about the proposed stewardship acquisition. The written information shall include all of the following:

AB303,4,24 1. The assessed value, as defined in s. 70.114 (1) (ad), of the land that is the subject of the proposed acquisition.

AB303,5,2 2. A copy of each appraisal that the department is required to submit under sub. (7) (f).

AB303,5,4 3. A copy of any statement prepared by a zoning office under sub. (7) (g) that relates to the stewardship acquisition.

AB303, s. 5 Section 5. 23.0917 (6) (e) of the statutes is created to read:

AB303,5,11 23.0917 (6) (e) 1. The department may not obligate moneys to provide funding for a stewardship acquisition if the stewardship acquisition is subject to review by the joint committee on finance under this subsection and if the acquisition costs, as calculated under sub. (7), of the land to be acquired may equal or exceed an amount equal to 4 times the assessed value of the land unless the stewardship acquisition is approved by the committee under par. (a) 3.

AB303,5,20 2. For any stewardship acquisition to which subd. 1. applies, the department of natural resources shall submit to the department of revenue and to the clerk and assessor of each taxation district in which the land is located a statement informing them of the proposed stewardship acquisition and a copy of the written information required under par. (d). If the joint committee on finance approves the stewardship acquisition, the assessor of each taxation district in which the land is located shall, within 10 days after the date of the approval, perform a reassessment of all of the land located in that taxation district that has the same zoning classification as the land that constitutes the stewardship acquisition.

AB303, s. 6 Section 6. 23.0917 (6) (f) of the statutes is created to read:

AB303,6,2 23.0917 (6) (f) The department may not obligate moneys to provide funding for a stewardship acquisition if the stewardship acquisition is subject to review by the joint committee on finance under this subsection, and if the acquisition costs, as calculated under sub. (7), of the land to be acquired equal or exceed an amount equal to 5 times the assessed value.

AB303, s. 7 Section 7. 23.0917 (7) (a) of the statutes is renumbered 23.0917 (7) (am) and amended to read:

AB303,6,10 23.0917 (7) (am) Except as provided in pars. (b) and (c), for purposes of calculating the acquisition costs for acquisition of land under ss. 23.09 (19), (20) and (20m), 23.092 (4), 23.094 (3g), 23.096, 30.24 (4) and 30.277 from the appropriation under s. 20.866 (2) (ta) a stewardship acquisition, the acquisition costs shall equal the sum of the land's current fair market value based on its adjusted highest and best use and other acquisition costs, as determined by rule by the department.