AB730,2,4
1An Act to renumber 66.066 (5) and 77.707;
to amend 13.94 (4) (a) 1., 13.94 (10),
216.70 (14), 18.03 (5s), 19.42 (13) (a), 19.59 (1) (a), 19.59 (1) (g) 1. a., 25.50 (1) (d),
366.04 (2) (a) (intro.), 66.066 (1) (a), 66.066 (1) (c), 66.067, 66.30 (1) (a), 71.26 (1)
4(bm), 71.26 (1m) (g), 71.36 (1m), 71.45 (1t) (g), 77.705 (title), 77.71, 77.76 (3m),
577.76 (4), 779.14 (1m) (d) 2. b. and 779.14 (1m) (d) 3.; and
to create 20.395 (1)
6(gv), 20.566 (1) (ge), 20.835 (4) (ge), 20.867 (5), 24.61 (2) (a) 8., 25.17 (3) (b) 11.,
766.04 (2) (a) 3q., 66.066 (5) (b), 71.05 (1) (c) 5., 77.54 (45), 77.706, 77.707 (2),
877.76 (3p), 85.62, 219.09 (1) (d), subchapter IV of chapter 229 [precedes
9229.820] and 779.14 (4) of the statutes;
relating to: creating a local
10professional football stadium district; giving a local professional football
11stadium district the authority to issue bonds and granting income tax
12exemptions for interest income on bonds issued by the district; making a state
13moral obligation pledge with respect to bonds issued by a local professional
14football stadium district; giving a local professional football stadium district
1the authority to impose a sales tax and a use tax; creating an income and
2franchise tax exemption for a local professional football stadium district; state
3aid for transportation facilities associated with a professional football team's
4home stadium; and making appropriations.
Analysis by the Legislative Reference Bureau
Creation and dissolution of a district
This bill creates a professional football stadium district, which is a special
purpose district, in each county with a population of more than 150,000 that includes
the principal site of an existing or to be constructed league-approved home stadium
for a professional football team that is a member of a league of teams that have home
stadiums in at least ten states and a collective average attendance for all league
members of at least 40,000 per game over the five years immediately preceding the
year in which a district is created. 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. Under the bill, a
district's jurisdiction remains fixed even if population or attendance figures
subsequently decline below the minimums described. A district does not have
jurisdiction over any relocated stadium, whether or not the stadium is approved by
the league.
In connection with football stadium facilities, the powers of a district include
the construction, maintenance, management and acquisition of the football stadium
and facilities; the issuance of bonds and imposition of a sales tax and a use tax to
finance the stadium and facilities; and the authority to enter into partnerships, joint
ventures, common ownership or other arrangements with other persons to further
the district's purposes. Before the taxes imposed by a district may take effect,
however, the district's action must be approved in a referendum. A district may also
set standards governing the use of, and the conduct within, the stadium and
facilities, and may set and collect fees for the use of the facilities or for the right to
purchase admission to events at the stadium. Unless it is not feasible to do so, the
bill requires a district to enter into a contract with a professional football team, or
a subsidiary or affiliate of the team, that requires the team or its subsidiary or
affiliate to acquire and construct football stadium facilities that are part of any
facilities that the district leases to the team or its subsidiary, whether or not the
football stadium facilities are financed by a district.
The district is governed by a board that consists of two persons appointed by the
governor, two persons appointed by the chief elected official of the most populous city
within the district's jurisdiction, two persons appointed by the chief elected official
of the county in which the football stadium is located and, if such a situation exists,
one person appointed by the chief elected official of each city, village or town
(municipality) within the district's jurisdiction, other than the most populous city
within the district's jurisdiction, that has a boundary at the time of the district's
creation that is contiguous to a boundary of the site of the football stadium.
A district may dissolve by action of the district board, subject to payment of the
district's bonds and fulfillment of its other contractual obligations. If a district is
dissolved, its property must be transferred to the municipalities and county in the
district's jurisdiction in proportions determined by the secretary of administration,
based on the contributions of each municipality and county to the development or
improvement of the football stadium facilities.
Under the bill, a municipality or county within the district's jurisdiction may
make grants or loans, or lease or transfer property, to a district; expend public funds
to subsidize a district; or borrow money to fund grants, loans or subsidies to a district.
With the consent of a district, such a municipality or county may also establish and
collect fees or other charges applicable only to a football stadium for the right to
purchase admission to events at the stadium.
bonding
This bill grants a district the power to issue revenue bonds for purchasing,
acquiring, leasing, constructing, extending, adding to, improving, conducting,
controlling, operating or managing a local professional football stadium district.
Under the bill, the bonds issued by the district may be secured by the district's
interest in any football stadium facilities, by income from these facilities, by proceeds
of bonds issued by the district and by other amounts placed in a special redemption
fund and investment earnings on such amounts, including any taxes that the district
is authorized to impose. The bill specifically provides that the district may not pledge
its full faith and credit on the bonds and that the bonds are not a general obligation
liability of the district.
The bill authorizes a district to establish a special debt service reserve fund,
subject to certain findings of the secretary of administration. The special debt service
reserve fund is significant, because if there are insufficient moneys in the special
debt service reserve fund to meet the special debt service reserve fund requirement
established in the bill, the legislature expresses its expectation and aspiration that,
if certain conditions are met, the legislature would appropriate state moneys to the
district in the amount necessary to restore the moneys in the fund to an amount equal
to its special debt service reserve fund requirement. This expression of legislative
expectation and aspiration has been referred to as a "state moral obligation pledge".
The special debt service requirement is determined in the bond resolution
authorizing the issuance of bonds.
In order to create a special debt service reserve fund backed up by the state
moral obligation pledge, however, the secretary of administration must find that the
bond proceeds will be used for purposes related to the football stadium facilities; that
there is a reasonable likelihood that the bonds will be repaid without the necessity
of drawing on funds in the special debt service reserve fund; that the amount of all
bonds that would be secured by all special debt service reserve funds of the district
will not exceed $160,000,000; and that the bonds, other than refunding bonds, will
be issued no later than December 31, 2004.
In addition to creating a state moral obligation pledge to appropriate to the
district the funds necessary to restore the special debt service reserve fund to an
amount equal to its special debt service reserve fund requirement, the bill provides
that the state pledges that it will not limit or alter the rights vested in a district under
the bill before the district has fully performed its contracts and has fully met and
discharged its bonds.
Finally, the bill contains provisions authorizing certain state and local
government funds and certain regulated financial institutions to invest in bonds
issued by the district; provides that all moneys received by a district, including
proceeds from the sale of bonds, are trust funds to be held and applied solely for the
purposes provided in the bill; and limits the personal liability of members of a
district's board of directors with respect to the issuance of bonds.
Provision of financial services
This bill permits the building commission, upon request of a district, to serve
as a financial consultant to the district for the purpose of assisting with and
coordinating the issuance of bonds by the district.
Finance
This bill permits the legislative audit bureau to audit the records of a district.
Under the bill, the joint legislative audit committee may review a district's
performance.
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.
applicability of other laws
Numerous laws that currently apply to special purpose districts and local units
of government apply to a local professional football district, including, among others:
1. The district is subject to laws requiring, with certain exceptions, public
notice of and access to meetings of the district board and public access to the district's
records.
2. The district is subject to worker's compensation, unemployment insurance,
state minimum wage and hour and family and medical leave laws.
3. The district is subject to the law requiring the payment of prevailing wages
on local government public works projects.
4. The district is governed by laws regulating municipal administrative
procedures and rights.
5. The district is subject to laws restricting employers from testing employes
and prospective employes for human immunodeficiency virus (HIV) or an antibody
to HIV.
6. The district is subject to the tort and antitrust liability limitation that
currently applies to actions brought against local governmental units of $50,000 per
occurrence, and persons attempting to sue the district are subject to a requirement
to file notice of their claims within 120 days of their occurrence.
7. The professional football stadium and related facilities of the district are
exempt from the property tax.
8. The district is subject to laws regulating buildings and safety.
9. The district may exercise eminent domain powers for public purposes, upon
a showing of necessity.
10. Purchases made by the district, other than purchases of building materials,
are subject to the sales tax and use tax and the property of the district is subject to
special assessment levies.
Under the bill, the district may participate in:
1. The state public employe retirement plan and state-administered plans for
deferred compensation, health care benefits and disability and survivor benefits.
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:
AB730,7,73
13.94
(4) (a) 1. Every state department, board, examining board, affiliated
4credentialing board, commission, independent agency, council or office in the
5executive branch of state government; all bodies created by the legislature in the
6legislative or judicial branch of state government; any public body corporate and
7politic created by the legislature including specifically a professional baseball park
8district
, a local professional football stadium district and a family care district
9created under s. 46.2895; every Wisconsin works agency under subch. III of ch. 49;
1every provider of medical assistance under subch. IV of ch. 49; technical college
2district boards; development zones designated under s. 560.71; every county
3department under s. 51.42 or 51.437; every nonprofit corporation or cooperative to
4which moneys are specifically appropriated by state law; and every corporation,
5institution, association or other organization which receives more than 50% of its
6annual budget from appropriations made by state law, including subgrantee or
7subcontractor recipients of such funds.
AB730, s. 2
8Section
2. 13.94 (10) of the statutes is amended to read:
AB730,7,169
13.94
(10) Financial status of local certain professional
baseball park
10sports districts. As promptly as possible following the end of each state fiscal
11biennium in which there are outstanding bonds or notes issued by a local
12professional baseball park district created under subch. III of ch. 229 that are subject
13to s. 229.74 (7)
or by a local professional football stadium district created under
14subch. IV of ch. 229 that are subject to s. 229.830 (7), the legislative audit bureau
15shall submit a report to the cochairpersons of the joint committee on finance
16concerning the financial status of that district.
AB730, s. 3
17Section
3. 16.70 (14) of the statutes is amended to read:
AB730,7,1918
16.70
(14) "State" does not include a district created under subch. II
or, III
or
19IV of ch. 229.
AB730, s. 4
20Section
4. 18.03 (5s) of the statutes is amended to read:
AB730,7,2421
18.03
(5s) Upon the request of a local professional baseball park district
22created under subch. III of ch. 229
or a local professional football stadium district
23created under subch. IV of ch. 229, the commission may serve as financial consultant
24to assist and coordinate the issuance of the bonds of a district.
AB730, s. 5
25Section
5. 19.42 (13) (a) of the statutes is amended to read:
AB730,8,6
119.42
(13) (a) All positions to which individuals are regularly appointed by the
2governor, except the position of trustee of any private higher educational institution
3receiving state appropriations
and, the position of member of the district board of a
4local professional baseball park district created under subch. III of ch. 229
and the
5position of member of the district board of a local professional football stadium
6district created under subch. IV of ch. 229.
AB730, s. 6
7Section
6. 19.59 (1) (a) of the statutes is amended to read:
AB730,8,178
19.59
(1) (a) No local public official may use his or her public position or office
9to obtain financial gain or anything of substantial value for the private benefit of
10himself or herself or his or her immediate family, or for an organization with which
11he or she is associated. A violation of this paragraph includes the acceptance of free
12or discounted admissions to a professional baseball
or football game by a member of
13the district board of a local professional baseball park district created under subch.
14III of ch. 229
or a local professional football stadium district created under subch. IV
15of ch. 229. This paragraph does not prohibit a local public official from using the title
16or prestige of his or her office to obtain campaign contributions that are permitted
17and reported as required by ch. 11.
AB730, s. 7
18Section
7. 19.59 (1) (g) 1. a. of the statutes is amended to read:
AB730,8,2119
19.59
(1) (g) 1. a. "District" means a local professional baseball park district
20created under subch. III of ch. 229
or a local professional football stadium district
21created under subch. IV of ch. 229.
AB730, s. 9
1Section
9. 20.395 (1) (gv) of the statutes is created to read:
AB730,9,42
20.395
(1) (gv)
Transportation aids to local professional football stadium
3districts. As a continuing appropriation, the amounts in the schedule for
4transportation aids to local professional football stadium districts under s. 85.62.
AB730, s. 10
5Section
10. 20.566 (1) (ge) of the statutes is created to read:
AB730,9,106
20.566
(1) (ge)
Administration of local professional football stadium district
7taxes. From the moneys transferred from the appropriation account under s. 20.835
8(4) (ge), the amounts in the schedule for administering the special district taxes
9imposed under s. 77.706 by a local professional football stadium district created
10under subch. IV of ch. 229.
AB730, s. 11
11Section
11. 20.835 (4) (ge) of the statutes is created to read:
AB730,9,1312
20.835
(4) (ge)
Local professional football stadium district taxes. All moneys
13received from the taxes imposed under s. 77.706, for the purpose of distribution to
1the special districts that adopt a resolution imposing taxes under subch. V of ch. 77,
2and for the purpose of financing a local professional football stadium district, except
3that, of those tax revenues collected under subch. V of ch. 77, 1.5% shall be credited
4to the appropriation account under s. 20.566 (1) (ge).
AB730, s. 12
5Section
12. 20.867 (5) of the statutes is created to read:
AB730,10,96
20.867
(5) Services to nonstate governmental units. (g)
Financial consulting
7services. All moneys received from local professional football stadium districts for
8financial consulting services provided under s. 18.03 (5s), to be used to provide those
9services.
AB730, s. 13
10Section
13. 24.61 (2) (a) 8. of the statutes is created to read:
AB730,10,1211
24.61
(2) (a) 8. Bonds issued by a local professional football stadium district
12created under subch. IV of ch. 229.
AB730, s. 14
13Section
14. 25.17 (3) (b) 11. of the statutes is created to read:
AB730,10,1514
25.17
(3) (b) 11. Bonds issued by a local professional football stadium district
15created under subch. IV of ch. 229.
AB730,11,218
25.50
(1) (d) "Local government" means any county, town, village, city, power
19district, sewerage district, drainage district, town sanitary district, public inland
20lake protection and rehabilitation district, local professional baseball park district
21created under subch. III of ch. 229, family care district under s. 46.2895,
local
22professional football stadium district created under subch. IV of ch. 229, public
23library system, school district or technical college district in this state, any
24commission, committee, board or officer of any governmental subdivision of this
1state, any court of this state, other than the court of appeals or the supreme court,
2or any authority created under s. 231.02, 233.02 or 234.02.
AB730, s. 16
3Section
16. 66.04 (2) (a) (intro.) of the statutes is amended to read:
AB730,11,84
66.04
(2) (a) (intro.) Any county, city, village, town, school district, drainage
5district, technical college district or other governing board
, as defined by s. 34.01 (1)
,
6other than a local professional football stadium district board created under subch.
7IV of ch. 229, may invest any of its funds not immediately needed in any of the
8following:
AB730, s. 17
9Section
17. 66.04 (2) (a) 3q. of the statutes is created to read:
AB730,11,1110
66.04
(2) (a) 3q. Bonds issued by a local professional football stadium district
11created under subch. IV of ch. 229.
AB730, s. 18
12Section
18. 66.066 (1) (a) of the statutes is amended to read: