AB730: Bill Text

2. The local government property insurance fund.

The bill provides that the district is not subject to laws regulating generally the ways in which funds of local governments may be invested.

The bill also provides that the district may:

1. Contract with municipalities and federally recognized Indian tribes and bands in this state for the receipt or furnishing of services or the joint exercise of powers or duties.

2. Participate in the state-operated local government pooled-investment fund.

Under the bill, the assets and liabilities of a district are not assets or liabilities of the county in which the district is located.

taxation

Under the bill, a local professional football stadium district may adopt a resolution to impose a sales tax and a use tax at a rate of no more than 0.5% on the sale or use of tangible personal property or services in the district subject to approval by the electors of a district at a referendum. The referendum may be held at any regularly scheduled primary or other election, or at a special election. The date of the referendum is determined by the county board of the county in which a district is located. The district tax revenue may be used only for purposes related to football stadium facilities. Under the bill, generally, the sales tax and use tax imposed by the district may not be collected after the district has retired its bonds related to the football stadium facilities and after reserve funds are adequately funded.

Under the bill, the income of a local professional football stadium district is exempt from the income tax and the franchise tax, and the income and interest from the district's obligations are exempt from the income tax and the franchise tax.

The bill creates a sales tax and a use tax exemption for parking related to professional football stadium facilities and for a license or other right to purchase admission to events at a professional football stadium.

Liens

Current law provides certain protections to persons who provide labor and materials for a construction project. For example, a person who works on an improvement to privately owned land generally has a lien on all interests in the land (construction lien). However, under current law, a construction lien may not be filed against property owned by a public entity. Thus, in the case of a public construction project, a person who works on the project generally has a lien on money owing to the prime contractor, with certain exceptions. Furthermore, current law contains a bonding requirement, under which certain public construction contracts must include a provision requiring the prime contractor to provide or obtain a payment and performance bond or other payment assurance. In the case of a public construction contract with a local government entity, a bonding requirement applies to any contract exceeding $50,000.

This bill exempts a public construction contract with a district from any applicable bonding requirement.

Transportation aids

The bill authorizes the department of transportation (DOT) to make aid payments to a local professional football stadium district for the development, construction, reconstruction or improvement of bridges, highways, parking lots, garages, transportation facilities or other functionally related or auxiliary facilities or structures associated with any home stadium of a professional football team, and creates a continuing appropriation in the segregated transportation fund for this purpose. The bill does not appropriate any money for the purpose of DOT making such aid payments. Continuing appropriations are expendable until fully depleted or repealed by subsequent action of the legislature.

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:

AB730, s. 1 Section 1. 13.94 (4) (a) 1. of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

AB730,7,7 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 professional football stadium district and a family care district created 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.

AB730, s. 2 Section 2. 13.94 (10) of the statutes is amended to read:

AB730,7,16 13.94 (10) Financial status of local certain professional baseball park sports districts. As promptly as possible following the end of each state fiscal biennium in which there are outstanding bonds or notes issued by a local professional baseball park district created under subch. III of ch. 229 that are subject to s. 229.74 (7) or by a local professional football stadium district created under subch. IV of ch. 229 that are subject to s. 229.830 (7), the legislative audit bureau shall submit a report to the cochairpersons of the joint committee on finance concerning the financial status of that district.

AB730, s. 3 Section 3. 16.70 (14) of the statutes is amended to read:

AB730,7,19 16.70 (14) "State" does not include a district created under subch. II or, III or IV of ch. 229.

AB730, s. 4 Section 4. 18.03 (5s) of the statutes is amended to read:

AB730,7,24 18.03 (5s) Upon the request of 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, the commission may serve as financial consultant to assist and coordinate the issuance of the bonds of a district.

AB730, s. 5 Section 5. 19.42 (13) (a) of the statutes is amended to read:

AB730,8,6 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 professional football stadium district created under subch. IV of ch. 229.

AB730, s. 6 Section 6. 19.59 (1) (a) of the statutes is amended to read:

AB730,8,17 19.59 (1) (a) No local public official may use his or her public position or office to obtain financial gain or anything of substantial value for the private benefit of himself or herself or his or her immediate family, or for an organization with which he or she is associated. A violation of this paragraph includes the acceptance of free or discounted admissions to a professional baseball or football game by a member of the district board of 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. This paragraph does not prohibit a local public official from using the title or prestige of his or her office to obtain campaign contributions that are permitted and reported as required by ch. 11.

AB730, s. 7 Section 7. 19.59 (1) (g) 1. a. of the statutes is amended to read:

AB730,8,21 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.

AB730, s. 8 Section 8. 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

AB730, s. 9 Section 9. 20.395 (1) (gv) of the statutes is created to read:

AB730,9,4 20.395 (1) (gv) Transportation aids to local professional football stadium districts. As a continuing appropriation, the amounts in the schedule for transportation aids to local professional football stadium districts under s. 85.62.

AB730, s. 10 Section 10. 20.566 (1) (ge) of the statutes is created to read:

AB730,9,10 20.566 (1) (ge) Administration of local professional football stadium district taxes. From the moneys transferred from the appropriation account under s. 20.835 (4) (ge), the amounts in the schedule for administering the special district taxes imposed under s. 77.706 by a local professional football stadium district created under subch. IV of ch. 229.

AB730, s. 11 Section 11. 20.835 (4) (ge) of the statutes is created to read:

AB730,9,13 20.835 (4) (ge) Local professional football stadium district taxes. All moneys received from the taxes imposed under s. 77.706, for the purpose of distribution to the special districts that adopt a resolution imposing taxes under subch. V of ch. 77, and for the purpose of financing a local professional football stadium district, except that, of those tax revenues collected under subch. V of ch. 77, 1.5% shall be credited to the appropriation account under s. 20.566 (1) (ge).

AB730, s. 12 Section 12. 20.867 (5) of the statutes is created to read:

AB730,10,9 20.867 (5) Services to nonstate governmental units. (g) Financial consulting services. All moneys received from local professional football stadium districts for financial consulting services provided under s. 18.03 (5s), to be used to provide those services.

AB730, s. 13 Section 13. 24.61 (2) (a) 8. of the statutes is created to read:

AB730,10,12 24.61 (2) (a) 8. Bonds issued by a local professional football stadium district created under subch. IV of ch. 229.

AB730, s. 14 Section 14. 25.17 (3) (b) 11. of the statutes is created to read:

AB730,10,15 25.17 (3) (b) 11. Bonds issued by a local professional football stadium district created under subch. IV of ch. 229.

AB730, s. 15 Section 15. 25.50 (1) (d) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

AB730,11,2 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, 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.

AB730, s. 16 Section 16. 66.04 (2) (a) (intro.) of the statutes is amended to read:

AB730,11,8 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), other than a local professional football stadium district board created under subch. IV of ch. 229, may invest any of its funds not immediately needed in any of the following:

AB730, s. 17 Section 17. 66.04 (2) (a) 3q. of the statutes is created to read:

AB730,11,11 66.04 (2) (a) 3q. Bonds issued by a local professional football stadium district created under subch. IV of ch. 229.

AB730, s. 18 Section 18. 66.066 (1) (a) of the statutes is amended to read:

AB730,11,23 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 professional football stadium district created under subch. IV 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.

AB730, s. 19 Section 19. 66.066 (1) (c) of the statutes is amended to read:

AB730,12,8 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 and, in the case of a local professional football stadium district created under subch. IV of ch. 229 includes tax revenues deposited into a special fund under s. 229.825 and payments made into a special debt service reserve fund under s. 229.830.

AB730, s. 20 Section 20. 66.066 (5) of the statutes is renumbered 66.066 (5) (a).

AB730, s. 21 Section 21. 66.066 (5) (b) of the statutes is created to read:

AB730,12,13 66.066 (5) (b) Revenue bonds issued by a local professional football stadium district created under subch. IV of ch. 229 are subject to the provisions in ss. 229.829 to 229.834.

AB730, s. 22 Section 22. 66.067 of the statutes is amended to read:

AB730,12,23 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 professional football stadium facilities and any and all other necessary public works projects undertaken by any municipality are public utilities within the meaning of s. 66.066.

AB730, s. 23 Section 23. 66.30 (1) (a) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

AB730,13,11 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 professional football stadium district created under subch. IV 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.

AB730, s. 24 Section 24. 71.05 (1) (c) 5. of the statutes is created to read:

AB730,13,14 71.05 (1) (c) 5. A local professional football stadium district created under subch. IV of ch. 229.

AB730, s. 25 Section 25. 71.26 (1) (bm) of the statutes is amended to read:

AB730,13,19 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 professional football stadium district created under subch. IV of ch. 229.

AB730, s. 26 Section 26. 71.26 (1m) (g) of the statutes is amended to read:

AB730,13,22 71.26 (1m) (g) Those issued under s. 66.066 by a local professional baseball park district or a local professional football stadium district.

AB730, s. 27 Section 27. 71.36 (1m) of the statutes is amended to read:

AB730,14,20 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 professional football stadium 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.

AB730, s. 28 Section 28. 71.45 (1t) (g) of the statutes is amended to read:

AB730,14,23 71.45 (1t) (g) Those issued under s. 66.066 by a local professional baseball park district or a local professional football stadium district.

AB730, s. 29 Section 29. 77.54 (45) of the statutes is created to read:

AB730,15,3 77.54 (45) The gross receipts from the sale of, and the storage, use or other consumption of, any of the following related to the use of football stadium facilities, as defined in s. 229.821 (7):

AB730,15,6 (a) Parking or providing parking space for motor vehicles on property that is leased from a municipality or a local professional football stadium district and leased to a professional football team or a related party, as defined in s. 229.821 (12).

AB730,15,10 (b) Parking or providing parking space for motor vehicles on professional football game days pursuant to a contract between a municipality or a local professional football stadium district and the owner of the property on which there is parking or parking space provided on professional football game days.

AB730,15,14 (c) A license or other right to purchase admission to events at a football stadium, as defined in s. 229.821 (6), that is granted by a municipality; a local professional football stadium district; or a professional football team or related party, as defined in s. 229.821 (12).

AB730, s. 30 Section 30. 77.705 (title) of the statutes is amended to read:

AB730,15,16 77.705 (title) Adoption by resolution; baseball park district.

AB730, s. 31 Section 31. 77.706 of the statutes is created to read:

AB730,15,25 77.706 Adoption by resolution; football stadium district. A local professional football stadium district created under subch. IV of ch. 229, by resolution under s. 229.824 (15), may impose a sales tax and a use tax under this subchapter at a rate of no more than 0.5% of the gross receipts or sales price. Those taxes may be imposed only in their entirety. The imposition of the taxes under this section shall be effective on the first day of the first month that begins 30 days after the approval of the resolution by the electors in the district's jurisdiction under s. 229.824 (15).

AB730, s. 32 Section 32. 77.707 of the statutes is renumbered 77.707 (1).

AB730, s. 33 Section 33. 77.707 (2) of the statutes is created to read:

AB730,16,9 77.707 (2) Retailers and the department of revenue may not collect a tax under s. 77.706 for any local professional football stadium district created under subch. IV of ch. 229 after the calendar quarter during which the local professional football stadium district board makes a certification to the department of revenue under s. 229.825 (2), except that the department of revenue may collect from retailers taxes that accrued before that calendar quarter and fees, interest and penalties that relate to those taxes.

AB730, s. 34 Section 34. 77.71 of the statutes is amended to read:

AB730,16,14 77.71 Imposition of county and special district sales and use taxes. Whenever a county sales and use tax ordinance is adopted under s. 77.70 or a special district resolution is adopted under s. 77.705 or 77.706, the following taxes are imposed:

AB730,16,22 (1) For the privilege of selling, leasing or renting tangible personal property and for the privilege of selling, performing or furnishing services a sales tax is imposed upon retailers at the rate of 0.5% in the case of a county tax or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the gross receipts from the sale, lease or rental of tangible personal property, except property taxed under sub. (4), sold, leased or rented at retail in the county or special district or from selling, performing or furnishing services described under s. 77.52 (2) in the county or special district.