Amendment SSA1-SB442

SENATE SUBSTITUTE AMENDMENT 1, TO 1999 SENATE BILL 442

March 29, 2000 - Offered by Joint committee on Finance.

SB442-SSA1,2,2 An Act to renumber 66.04 (1) and 66.066 (5); to amend 13.94 (4) (a) 1., 16.70 (14), 19.42 (13) (a), 25.50 (1) (d), 32.02 (11), 32.05 (intro.), 32.05 (1) (a), 32.07 (2), 40.02 (28), 40.02 (36), 66.04 (2) (a) (intro.), 66.066 (1) (a), 66.067, 66.30 (1) (a), 71.26 (1) (bm), 71.26 (1m) (g), 71.36 (1m), 71.45 (1t) (g), 111.02 (7), 111.70 (1) (j) and 230.03 (3); to repeal and recreate 40.02 (28); and to create 24.61 (2) (a) 9., 25.17 (3) (b) 12., 66.04 (1a), 66.04 (2) (a) 3t., 66.066 (5) (c), 70.11 (40), 71.05 (1) (c) 6., 77.54 (9a) (h), 219.09 (1) (f) and subchapter V of chapter 229 [precedes 229.840] of the statutes; relating to: authorizing the creation of a local cultural arts district; granting a property tax exemption for the district's property; granting a sales tax and use tax exemption for tangible personal property and services purchased by the district; giving a local cultural arts district the authority to issue bonds and granting income tax exemptions for interest income on bonds issued by the district; and authorizing certain local cultural arts districts to acquire property by condemnation.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB442-SSA1, s. 1 Section 1. 13.94 (4) (a) 1. of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB442-SSA1,2,17 13.94 (4) (a) 1. Every state department, board, examining board, affiliated credentialing board, commission, independent agency, council or office in the executive branch of state government; all bodies created by the legislature in the legislative or judicial branch of state government; any public body corporate and politic created by the legislature including specifically a professional baseball park district, a local cultural arts district and a family care district under s. 46.2895; every Wisconsin works agency under subch. III of ch. 49; every provider of medical assistance under subch. IV of ch. 49; technical college district boards; development zones designated under s. 560.71; every county department under s. 51.42 or 51.437; every nonprofit corporation or cooperative to which moneys are specifically appropriated by state law; and every corporation, institution, association or other organization which receives more than 50% of its annual budget from appropriations made by state law, including subgrantee or subcontractor recipients of such funds.

SB442-SSA1, s. 2 Section 2. 16.70 (14) of the statutes is amended to read:

SB442-SSA1,2,20 16.70 (14) "State" does not include a district created under subch. II or, III or V of ch. 229.

SB442-SSA1, s. 3 Section 3. 19.42 (13) (a) of the statutes is amended to read:

SB442-SSA1,3,4 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 and the position of member of the district board of a local cultural arts district created under subch. V of ch. 229.

SB442-SSA1, s. 4 Section 4. 24.61 (2) (a) 9. of the statutes is created to read:

SB442-SSA1,3,7 24.61 (2) (a) 9. Bonds issued by a local cultural arts district under subch. V of ch. 229.

SB442-SSA1, s. 5 Section 5. 25.17 (3) (b) 12. of the statutes is created to read:

SB442-SSA1,3,10 25.17 (3) (b) 12. Bonds issued by a local cultural arts district under subch. V of ch. 229.

SB442-SSA1, s. 6 Section 6. 25.50 (1) (d) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB442-SSA1,3,21 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 cultural arts district created under subch. V 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.

SB442-SSA1, s. 7 Section 7. 32.02 (11) of the statutes is amended to read:

SB442-SSA1,4,2 32.02 (11) Any housing authority created under ss. 66.40 to 66.404,; redevelopment authority created under s. 66.431,; community development authority created under s. 66.4325; local cultural arts district created under subch. V of ch. 229, subject to s. 229.844 (4) (c); or local exposition district created under subch. II of ch. 229.

SB442-SSA1, s. 8 Section 8. 32.05 (intro.) of the statutes is amended to read:

SB442-SSA1,4,25 32.05 Condemnation for sewers and transportation facilities. (intro.) In this section, "mass transit facility" includes, without limitation because of enumeration, exclusive or preferential bus lanes if those lanes are limited to abandoned railroad rights-of-way or existing expressways constructed before May 17, 1978, highway control devices, bus passenger loading areas and terminal facilities, including shelters, and fringe and corridor parking facilities to serve bus and other public mass transportation passengers, together with the acquisition, construction, reconstruction and maintenance of lands and facilities for the development, improvement and use of public mass transportation systems for the transportation of passengers. This section does not apply to town highways created or altered under ch. 80 except as to jury trials on appeals under ss. 80.24 and 80.25, nor to proceedings in 1st class cities under subch. II. In any city, condemnation for housing under ss. 66.40 to 66.404, or for urban renewal under s. 66.431, or for cultural arts facilities under subch. V of ch. 229, may proceed under this section or under s. 32.06 at the option of the condemning authority. Condemnation by a local exposition district under subch. II of ch. 229 for any exposition center or exposition center facility may proceed under this section or under s. 32.06 at the option of the local exposition district. All other condemnation of property for public alleys, streets, highways, airports, mass transit facilities, or other transportation facilities, gas or leachate extraction systems to remedy environmental pollution from a solid waste disposal facility, storm sewers and sanitary sewers, watercourses or water transmission and distribution facilities shall proceed as follows:

SB442-SSA1, s. 9 Section 9. 32.05 (1) (a) of the statutes is amended to read:

SB442-SSA1,5,21 32.05 (1) (a) Except as provided under par. (b), the county board of supervisors or the county highway committee when so authorized by the county board of supervisors, city council, village board, town board, sewerage commission governing metropolitan sewerage district created by ss. 66.22 or 66.88 to 66.918, secretary of transportation, a commission created by contract under s. 66.30, a joint local water authority created by contract under s. 66.0375 66.0735, housing authority under ss. 66.40 to 66.404, local exposition district created under subch. II of ch. 229, local cultural arts district created under subch. V of ch. 229, redevelopment authority under s. 66.431 or community development authority under s. 66.4325 shall make an order providing for the laying out, relocation and improvement of the public highway, street, alley, storm and sanitary sewers, watercourses, water transmission and distribution facilities, mass transit facilities, airport, or other transportation facilities, gas or leachate extraction systems to remedy environmental pollution from a solid waste disposal facility, housing project, redevelopment project, cultural arts facilities, exposition center or exposition center facilities which shall be known as the relocation order. This order shall include a map or plat showing the old and new locations and the lands and interests required. A copy of the order shall, within 20 days after its issue, be filed with the county clerk of the county wherein the lands are located or, in lieu of filing a copy of the order, a plat may be filed or recorded in accordance with s. 84.095.

SB442-SSA1, s. 10 Section 10. 32.07 (2) of the statutes is amended to read:

SB442-SSA1,6,7 32.07 (2) The petitioner shall determine necessity if application is by the state or any commission, department, board or other branch of state government or by a city, village, town, county, school district, board, commission, public officer, commission created by contract under s. 66.30, joint local water authority under s. 66.0735, redevelopment authority created under s. 66.431, local exposition district created under subch. II of ch. 229, local cultural arts district created under subch. V of ch. 229, housing authority created under ss. 66.40 to 66.404 or for the right-of-way of a railroad up to 100 feet in width, for a telegraph, telephone or other electric line, for the right-of-way for a gas pipeline, main or service or for easements for the construction of any elevated structure or subway for railroad purposes.

SB442-SSA1, s. 11 Section 11. 40.02 (28) of the statutes, as affected by 1999 Wisconsin Act 9, section 931b, is amended to read:

SB442-SSA1,6,19 40.02 (28) "Employer" means the state, including each state agency, any county, city, village, town, school district, other governmental unit or instrumentality of 2 or more units of government now existing or hereafter created within the state and, any federated public library system established under s. 43.19 whose territory lies within a single county with a population of 500,000 or more, a local exposition district created under subch. II of ch. 229 and a family care district created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3) and subch. X. "Employer" does not include a local cultural arts district created under subch. V of ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI purposes.

SB442-SSA1, s. 12 Section 12. 40.02 (28) of the statutes, as affected by 1999 Wisconsin Act 9, section 931c, and 1999 Wisconsin Act .... (this act), is repealed and recreated to read:

SB442-SSA1,7,5 40.02 (28) "Employer" means the state, including each state agency, any county, city, village, town, school district, other governmental unit or instrumentality of 2 or more units of government now existing or hereafter created within the state, any federated public library system established under s. 43.19 whose territory lies within a single county with a population of 500,000 or more, a local exposition district created under subch. II of ch. 229 and a family care district created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3). "Employer" does not include a local cultural arts district created under subch. V of ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI purposes.

SB442-SSA1, s. 13 Section 13. 40.02 (36) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB442-SSA1,7,17 40.02 (36) "Governing body" means the legislature or the head of each state agency with respect to employes of that agency for the state, the common council in cities, the village board in villages, the town board in towns, the county board in counties, the school board in school districts, or the board, commission or other governing body having the final authority for any other unit of government, for any agency or instrumentality of 2 or more units of government, for any federated public library system established under s. 43.19 whose territory lies within a single county with a population of 500,000 or more, for a local exposition district created under subch. II of ch. 229 or for a family care district created under s. 46.2895, but does not include a local cultural arts district created under subch. V of ch. 229.

SB442-SSA1, s. 14 Section 14. 66.04 (1) of the statutes is renumbered 66.04 (1e).

SB442-SSA1, s. 15 Section 15. 66.04 (1a) of the statutes is created to read:

SB442-SSA1,7,22 66.04 (1a) Definition. In this section, "governing board" has the meaning given under s. 34.01 (1) but does not include a local cultural arts district board created under subch. V of ch. 229.

SB442-SSA1, s. 16 Section 16. 66.04 (2) (a) (intro.) of the statutes is amended to read:

SB442-SSA1,8,3 66.04 (2) (a) (intro.) Any county, city, village, town, school district, drainage district, technical college district or other governing board as defined by s. 34.01 (1) may invest any of its funds not immediately needed in any of the following:

SB442-SSA1, s. 17 Section 17. 66.04 (2) (a) 3t. of the statutes is created to read:

SB442-SSA1,8,6 66.04 (2) (a) 3t. Bonds issued by a local cultural arts district under subch. V of ch. 229.

SB442-SSA1, s. 18 Section 18. 66.066 (1) (a) of the statutes is amended to read:

SB442-SSA1,8,17 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, a local cultural arts district created under subch. V 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.

SB442-SSA1, s. 19 Section 19. 66.066 (5) of the statutes is renumbered 66.066 (5) (a).

SB442-SSA1, s. 20 Section 20. 66.066 (5) (c) of the statutes is created to read:

SB442-SSA1,8,21 66.066 (5) (c) Revenue bonds issued by a local cultural arts district created under subch. V of ch. 229 are subject to the provisions in ss. 229.849 to 229.853.

SB442-SSA1, s. 21 Section 21. 66.067 of the statutes is amended to read:

SB442-SSA1,9,6 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, child care centers, as defined in s. 231.01 (3c), regional projects, waste collection and disposal operations, systems of sewerage, local professional baseball park facilities, local cultural arts facilities and any and all other necessary public works projects undertaken by any municipality are public utilities within the meaning of s. 66.066.

SB442-SSA1, s. 22 Section 22. 66.30 (1) (a) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB442-SSA1,9,19 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. 59.70 (2), local exposition district created under subch. II of ch. 229, local professional baseball park district created under subch. III of ch. 229, local cultural arts district created under subch. V of ch. 229, family care district under s. 46.2895, 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.

SB442-SSA1, s. 23 Section 23. 70.11 (40) of the statutes is created to read:

SB442-SSA1,9,22 70.11 (40) Local cultural arts district. Property of a local cultural arts district under subch. V of ch. 229, except any of the following:

SB442-SSA1,9,25 (a) Property that is not a part of the physical structure of a cultural arts facility, as defined under s. 229.841 (5), if that property is used for a retail business or a restaurant, unless the retail business or restaurant is operated by the local cultural arts district or by a corporation, organization or association described in section 501 (c) 3 of the Internal Revenue Code that is exempt from taxation under section 501 (a) of the Internal Revenue Code.

SB442-SSA1,10,5 (b) A parking lot or parking structure that is not used to support the operation of a cultural arts facility, as defined under s. 229.841 (5).

SB442-SSA1, s. 24 Section 24. 71.05 (1) (c) 6. of the statutes is created to read:

SB442-SSA1,10,7 71.05 (1) (c) 6. A local cultural arts district created under subch. V of ch. 229.

SB442-SSA1, s. 25 Section 25. 71.26 (1) (bm) of the statutes is amended to read:

SB442-SSA1,10,12 71.26 (1) (bm) Certain local districts. Income of a local exposition district created under subch. II of ch. 229 or, a local professional baseball park district created under subch. III of ch. 229 or a local cultural arts district created under subch. V of ch. 229.

SB442-SSA1, s. 26 Section 26. 71.26 (1m) (g) of the statutes is amended to read:

SB442-SSA1,10,15 71.26 (1m) (g) Those issued under s. 66.066 by a local professional baseball park district or a local cultural arts district.

SB442-SSA1, s. 27 Section 27. 71.36 (1m) of the statutes is amended to read:

SB442-SSA1,11,12 71.36 (1m) A tax-option corporation may deduct from its net income all amounts included in the Wisconsin adjusted gross income of its shareholders, the capital gain deduction under s. 71.05 (6) (b) 9. and all amounts not taxable to nonresident shareholders under ss. 71.04 (1) and (4) to (9) and 71.362. For purposes of this subsection, interest on federal obligations, obligations issued under s. 66.066 by a local professional baseball park district or a local cultural arts district, obligations issued under ss. 66.40, 66.431 and 66.4325, obligations issued under s. 234.65 to fund an economic development loan to finance construction, renovation or development of property that would be exempt under s. 70.11 (36) and obligations issued under subch. II of ch. 229 is not included in shareholders' income. The proportionate share of the net loss of a tax-option corporation shall be attributed and made available to shareholders on a Wisconsin basis but subject to the limitation and carry-over rules as prescribed by section 1366 (d) of the internal revenue code. Net operating losses of the corporation to the extent attributed or made available to a shareholder may not be used by the corporation for further tax benefit. For purposes of computing the Wisconsin adjusted gross income of shareholders, tax-option items shall be reported by the shareholders and those tax-option items, including capital gains and losses, shall retain the character they would have if attributed to the corporation, including their character as business income. In computing the tax liability of a shareholder, no credit against gross tax that would be available to the tax-option corporation if it were a nontax-option corporation may be claimed.

SB442-SSA1, s. 28 Section 28. 71.45 (1t) (g) of the statutes is amended to read:

SB442-SSA1,11,15 71.45 (1t) (g) Those issued under s. 66.066 by a local professional baseball park district or a local cultural arts district.

SB442-SSA1, s. 29 Section 29. 77.54 (9a) (h) of the statutes is created to read:

SB442-SSA1,11,17 77.54 (9a) (h) A local cultural arts district under subch. V of ch. 229.

SB442-SSA1, s. 30 Section 30. 111.02 (7) of the statutes is amended to read:

SB442-SSA1,12,2 111.02 (7) The term "employer" means a person who engages the services of an employe, and includes any person acting on behalf of an employer within the scope of his or her authority, express or implied, but shall not include the state or any political subdivision thereof, or any labor organization or anyone acting in behalf of such organization other than when it is acting as an employer in fact. For purposes of this subsection, a person who engages the services of an employe includes the University of Wisconsin Hospitals and Clinics Authority and a local cultural arts district created under subch. V of ch. 229.

SB442-SSA1, s. 31 Section 31. 111.70 (1) (j) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB442-SSA1,12,10 111.70 (1) (j) "Municipal employer" means any city, county, village, town, metropolitan sewerage district, school district, family care district or any other political subdivision of the state that engages the services of an employe and includes any person acting on behalf of a municipal employer within the scope of the person's authority, express or implied, but specifically does not include a local cultural arts district created under subch. V of ch. 229.

SB442-SSA1, s. 32 Section 32. 219.09 (1) (f) of the statutes is created to read:

SB442-SSA1,12,13 219.09 (1) (f) Bonds issued by a local cultural arts district under subch. V of ch. 229.

SB442-SSA1, s. 33 Section 33. Subchapter V of chapter 229 [precedes 229.840] of the statutes is created to read:

SB442-SSA1,12,16 chapter 229

SB442-SSA1,12,19 Subchapter V Local cultural arts districts

SB442-SSA1,13,2 229.840 Legislative declaration. (1) The legislature determines that this subchapter serves a statewide public purpose by assisting the development of cultural arts facilities in the state, which provide educational and recreational opportunities for Wisconsin residents, by enhancing the appreciation of the arts among the states' residents, by encouraging economic development and tourism, by reducing unemployment and by bringing needed capital into the state for the benefit and welfare of people throughout the state.

SB442-SSA1,13,8 (2) The legislature determines that cultural arts districts in populous cities serve a public purpose in those cities by providing educational and recreational opportunities for residents of those cities, by enhancing the appreciation of the arts among the residents of those cities, by encouraging economic development and tourism, by reducing unemployment and by bringing needed capital into those cities for the benefit and welfare of people in those cities.

SB442-SSA1,13,9 229.841 Definitions. In this subchapter:

SB442-SSA1,13,11 (1) "Bond" means any bond, note or other obligation issued under s. 66.066 by a district.

SB442-SSA1,13,15 (2) "Bond resolution" means a resolution of the district board authorizing the issuance of, or providing terms and conditions related to, bonds and includes, where appropriate, any trust agreement, trust indenture, indenture of mortgage or deed of trust providing terms and conditions for bonds.

SB442-SSA1,13,21 (3) "County executive" means the county executive or, if the county does not have a county executive, the chairperson of the county board of supervisors, of the county in which the sponsoring city is located. If a sponsoring city is located in more than one county, the city shall be considered to be located solely in the county in which the greatest percentage of its territory is located at the time a district is created.

SB442-SSA1,13,24 (4) "Cultural arts activity" means any performance, program, concert, exhibit, show, broadcast or other activity with any artistic or cultural significance, or any related or incidental activity.

SB442-SSA1,14,6 (5) "Cultural arts facilities" means district property, tangible or intangible, owned in whole or in part, operated or leased by a district that is principally for a cultural arts activity including auditoriums, music halls, exhibit halls, theaters, practice facilities, dressing rooms, parking lots, garages, restaurants, concession facilities, entertainment facilities, transportation facilities and other functionally related or auxiliary facilities or structures.

SB442-SSA1,14,7 (6) "District" means a district created under this subchapter.

SB442-SSA1,14,8 (7) "District board" means the governing board of a district.

SB442-SSA1,14,9 (8) "Mayor" means the mayor of a sponsoring city.

SB442-SSA1,14,10 (9) "Populous city" means any city with a population of more than 150,000.

SB442-SSA1,14,12 (10) "Sponsoring city" means a populous city that creates a district under this subchapter.

SB442-SSA1,14,17 229.842 Creation and organization. (1) A sponsoring city may create a special purpose district that is a local governmental unit, that is a body corporate and politic, that is separate and distinct from, and independent of, the state and the sponsoring city, that has the powers under s. 229.844 and the name of which includes "Cultural Arts District", if all of the following occur:

SB442-SSA1,14,19 (a) The mayor issues a written proclamation declaring the need for establishing a district.

SB442-SSA1,14,23 (b) The sponsoring city's common council adopts a resolution that approves the mayor's proclamation, and delivers a copy of the resolution to the governor. The resolution under this paragraph may contain a procedure that the mayor must follow in appointing persons to the board under sub. (2) (c).

SB442-SSA1,15,3 (c) If the sponsoring city is not a 1st class city, the resolution under par. (b) specifies the area of the district's jurisdiction, as described in s. 229.843 (1), within which the district board may exercise its power of eminent domain.