AB1089: Bill Text

LRB-1209/1

MES/RAC/JK/JTK:cs:ch

2005 - 2006 LEGISLATURE

2005 Assembly BILL 1089

March 6, 2006 - Introduced by Representatives Stone, Honadel, Nischke, Newcomer, Gielow, Jeskewitz, Underheim, Hundertmark, Vos, Huebsch and J. Fitzgerald, cosponsored by Senators Plale, Darling, S. Fitzgerald, Stepp and Kanavas. Referred to Committee on Urban and Local Affairs.

AB1089,2,2 An Act to amend 16.70 (14), 19.42 (13) (a), 19.59 (1) (g) 1. a., 25.14 (5), 25.50 (1) (d), 32.02 (11), 59.69 (4g), 60.61 (2) (e), 62.23 (6) (am) 1. a., 66.0301 (1) (a), 66.0621 (1) (a), 66.0621 (1) (b), 66.1009 (intro.), 71.26 (1) (bm), 71.26 (1m) (g), 71.36 (1m), 71.45 (1t) (g), 79.02 (2) (b), 79.02 (3) (a), 114.105, 114.11 (1) to (4) and (5) (intro.), 114.12, 114.13, 114.135 (2), 114.135 (4), 114.135 (9), 114.136 (1) (a), 114.136 (2) (a), 114.136 (4) (a), 114.136 (5), 114.14 (1), 114.14 (2) (f), 114.151, 114.32, 114.33 (1), 114.33 (2), 114.33 (3), 114.33 (8), 114.33 (9), 114.33 (11) and 114.33 (13); and to create 24.61 (2) (a) 10., 24.61 (3) (a) 12., 25.17 (3) (b) 13., 25.17 (3) (bc), 66.0603 (1m) (a) 3r., 66.0621 (6) (d), 70.11 (44), 71.05 (1) (c) 7., 77.25 (22), 77.54 (9a) (i), 78.01 (2) (g), 78.01 (2m) (h), 79.005 (1j), 79.005 (1k), 79.02 (4), 114.002 (13), 219.09 (1) (g) and subchapter VI of chapter 229 [precedes 229.860] of the statutes; relating to: creating a local airport district and authorizing the creation of local airport districts; authorizing the Board of Commissioners of Public Lands to make loans to a county that contains a 1st class city; and authorizing the Investment Board to make loans to a county that contains a 1st class city from the state investment fund.

Analysis by the Legislative Reference Bureau

Creation and dissolution of a district

This bill creates a local airport district (district), which is a special purpose district, in each county that owns or operates an airport that is classified by the Federal Aviation Administration (FAA) as a transport airport which provides scheduled air transportation services and which had in excess of 2,000,000 scheduled passenger enplanements in the 12-month period before the bill takes effect. The bill also authorizes one or more local governmental units (any city, village, or county) to create a district by adopting enabling resolutions which establish a district. A district is a local unit of government that is a body corporate and politic and that is separate and distinct from, and independent of, the state and the political subdivisions within its jurisdiction.

In connection with airport facilities, the powers of a district include the construction, maintenance, management, and acquisition of property; the authority to enter into contracts for a variety of purposes; the authority to employ personnel; the authority to appoint a building inspector for airport facilities; the authority to establish a fire department for airport facilities; the authority to issue revenue bonds; the establishment of rates and collection of fees and charges for the use of airport facilities or for services provided by the district; and the authority to enter into partnerships, joint ventures, common ownership, or other arrangements with other persons to further the district's purposes. A district may also establish and enforce rules, regulations, and ordinances governing the use of airport facilities, and may establish civil penalties for the violation of such rules, regulations, and ordinances.

Under the bill, the district has concurrent police power with other authorized peace officers within its jurisdiction, and the district may employ police officers who may arrest any person on or in the district's airport facilities who the officers reasonably believe has violated a state law or any rule promulgated by the district. The district is also authorized to hire security personnel, or contract for such personnel, to provide routine patrol functions.

In the case of the district that is created by the bill, and subject to approval by the FAA and any other conditions agreed to by the county and the district, the county which currently owns or operates the airport is required to transfer and assign all of its rights, title, and interest in the airport and airport facilities that it owns or operates either on the effective date of the bill or on a date agreed to by the county and the district. Generally, such a date may not be later than the first day of the seventh month after the bill's effective date, but the parties may agree to any other terms or conditions that they prefer, notwithstanding the procedures specified in the bill.

During the period of time after the district is created but before FAA approval of the transfer, the county is required by the bill to cooperate with the district to obtain any necessary approvals, and ensure the smooth operation of the airport and airport facilities. The district, during this interim period and after a majority of the members of its board are appointed and qualified, is authorized to exercise any of its powers and duties, but only to the extent that is necessary to allow the district to work with the county to obtain FAA approval of the transfer. Until the FAA approval date, the county has the sole actual authority to act on behalf of the airport that the county owns or operates, unless the county delegates some of its authority to the district.

The district that is created in the bill is governed by a board that consists of four persons appointed by the governor, subject to confirmation or rejection by the state senate, and three persons appointed by the chief elected official of the county in which the airport is located, subject to confirmation or rejection by the county board. In general, members of the board are appointed to four-year terms. One of the governor's appointees and one of the chief elected official's appointees must be from one of the following cities: Cudahy, Oak Creek, St. Francis, or South Milwaukee. No member of the board may hold a state or local elective office or be an employee of the senate or any political subdivision. Members may be removed for cause before the expiration of their terms, and may serve any number of terms, provided that they serve no more than two consecutive terms.

If a district is created by one or more local governmental units, the district board shall have seven members, all of whom generally serve for four-year terms.

Generally under the bill, a district may exercise the same sorts of powers under the aeronautics statutes that a city, village, town, or county may currently exercise with regard to airports, aircraft, and aeronautics facilities. These powers include the authority to do all of the following: acquire, establish, own, and control airports or landing fields in this state or an adjoining state; appropriate money for the operation, improvement, or acquisition of an airport; acquire property by eminent domain for airport purposes; and protect the aerial approaches to the site of an airport.

If a district provides for the payment of bonds that it has issued and the performance of other contractual obligations, the district may be dissolved by its district board. The airport, airport facilities, and other property of the district shall be transferred to another political subdivision, district, or public body that agrees to accept the transfer.

Bonding authority

Under the bill, a district may issue bonds, under general law regulating local government issuance of revenue obligations, for any corporate purpose related to airport facilities, the operation of an airport, or the impact of an airport on surrounding areas and properties. The district may also issue bonds to fund, refund, advance refund, or purchase any outstanding bond of the district. The bonds are payable solely out of revenues of the district. Under the bill, neither the members of the district board nor any person executing the bonds are liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance of the bonds. Finally, under the bill, neither the state nor any political subdivision of the state is liable on the bonds, and the issuance of the bonds does not obligate the state or any political subdivision of the state to levy any form of taxation therefor or to make any appropriation for their payment.

Taxation and shared revenue

Under the bill, the property of a district is exempt from the property tax; the income of the district is exempt from income and franchise taxes; property conveyed from the district is exempt from the real estate transfer fee; tangible personal property and taxable services that are purchased by the district are exempt from sales and use taxes; and gasoline and diesel fuel sold to and used by the district are exempt from the motor vehicle fuel tax. In addition, the income and interest from the bonds issued by the district are exempt from the income and franchise tax.

Under current law, 15 percent of a county's shared revenue payment is paid in July and the remainder is paid in November. Under the bill, a county in which is located a district that is created by the bill will receive its entire shared revenue payment in November.

Loans to a district

The bill authorizes the Board of Commissioners of Public Lands to loan money in certain state trust funds to a county that contains a first class city, to be used to fund any shortfall in operating revenues during a fiscal year, for a period not to exceed 120 days. The bill also authorizes the Investment Board to make a similar loan from moneys in the state investment fund.

ethics

Members of a district board are subject to the statutory code of ethics for local public officials. In addition, board members are subject to other standards of conduct that apply to state public officials. However, like other local public officials, district board members are not subject to periodic reporting requirements.

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:

AB1089, s. 1 Section 1. 16.70 (14) of the statutes is amended to read:

AB1089,4,3 16.70 (14) "State" does not include a district created under subch. II, III, IV, or V, or VI of ch. 229.

AB1089, s. 2 Section 2. 19.42 (13) (a) of the statutes is amended to read:

AB1089,5,7 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 and, the position of member of the district board of a local cultural arts district created under subch. V of ch. 229, and the position of member of the district board of a local airport district created under subch. VI of ch. 229.

AB1089, s. 3 Section 3. 19.59 (1) (g) 1. a. of the statutes is amended to read:

AB1089,5,12 19.59 (1) (g) 1. a. "District" means a local professional baseball park district created under subch. III of ch. 229 or, a local professional football stadium district created under subch. IV of ch. 229, or a local airport district created under subch. VI of ch. 229.

AB1089, s. 4 Section 4. 24.61 (2) (a) 10. of the statutes is created to read:

AB1089,5,15 24.61 (2) (a) 10. Bonds issued by a local airport district under subch. VI of ch. 229.

AB1089, s. 5 Section 5. 24.61 (3) (a) 12. of the statutes is created to read:

AB1089,5,19 24.61 (3) (a) 12. A county that contains a 1st class city, to be used to fund any shortfall in operating revenues during a fiscal year, for a period not to exceed 120 days.

AB1089, s. 6 Section 6. 25.14 (5) of the statutes is amended to read:

AB1089,5,22 25.14 (5) The assets of the state investment fund shall be invested as prescribed by s. 25.17 (3) (b), (ba), (bc), and (bd).

AB1089, s. 7 Section 7. 25.17 (3) (b) 13. of the statutes is created to read:

AB1089,5,25 25.17 (3) (b) 13. Bonds issued by a local airport district under subch. VI of ch. 229.

AB1089, s. 8 Section 8. 25.17 (3) (bc) of the statutes is created to read:

AB1089,6,5 25.17 (3) (bc) Have authority to make a loan from moneys in the state investment fund to a county that contains a 1st class city, to be used to fund any shortfall in operating revenues during a fiscal year, for a period not to exceed 120 days.

AB1089, s. 9 Section 9. 25.50 (1) (d) of the statutes is amended to read:

AB1089,6,17 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, family care district under s. 46.2895, local professional football stadium district created under subch. IV of ch. 229, local cultural arts district created under subch. V of ch. 229, local airport district created under subch. VI 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.