AB892: Bill Text Engrossed

This bill creates an individual income tax checkoff for amounts to be deposited into the special fund to be used for debt service payments. Under the bill, an individual who has a tax liability or is entitled to a tax refund may designate any amount of additional payment, or any amount of a refund due that individual as a football donation, to be used for debt service on bonds issued by a district for football stadium purposes. The income tax checkoff first applies to taxable years beginning on January 1, 2001.

Special fund

The bill requires that the district board maintain a special fund into which are deposited all revenues received from the department of revenue that are derived from the district's sales and use taxes and from donations from individuals' income tax returns. Moneys in this fund must first be used to pay current debt service on all bonds issued by the district for purposes related to football stadium facilities and the excess revenues must be used for the following purposes in the following order:

1. Certain payments to the county located in the district's jurisdiction, but only if the second referendum question is submitted and approved by the electors.

2. District board administration expenses.

3. Operating and maintenance costs of the football stadium facilities.

4. If the second referendum question is submitted and approved by the electors, additional payments to the county located in the district's jurisdiction for the purpose of reducing the county's property tax levy or to retire the bonds issued by the district for purposes related to football stadium facilities and to fund reserves for district administrative expenses and operating and maintenance costs of the football stadium facilities. The county will decide what amounts of the excess revenues will be devoted to reducing the county property tax levy and the retirement of the bonds.

5. If the second referendum question is not submitted and approved by the electors, additional payments to retire the bonds issued by the district for purposes related to football stadium facilities and to fund reserves for district administrative expenses and operating and maintenance costs of the football stadium facilities.

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 fund and investment earnings on such amounts, including any taxes that the district is authorized to impose.

The bill provides that the principal amount of bonds, other than refunding bonds, that are issued by a district may not exceed $160,000,000. (This limitation, however, does not include the principal amount of any bonds that are used to pay issuance costs of the bonds, any original issue discount or the costs of credit enhancement or to make a deposit into a special debt service reserve fund.) Also, the bill requires that all bonds, other than refunding bonds, that are issued by a district must be issued no later than December 31, 2004.

The bill authorizes a district to establish a special debt service reserve fund, (which is a different fund from the special 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 principal amount of all bonds, other than refunding bonds, that would be secured by all special debt service reserve funds of the district will not exceed the amount of bonds that the district is authorized to issue; 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.

minority and women's business contracting goals

Under the bill, a district is required to ensure that, for construction or renovation work, and professional services, that relate to football stadium facilities that are financed by debt as provided under the bill, a person who is awarded a contract for such construction or renovation work by the district or by a contractor with whom the district has contracted must agree that his or her goal must be to ensure that at least 15% of the employes hired because of the contract will be minority group members and that at least 5% of the employes hired because of the contract will be women. It must also be a goal of the district that at least 15% of the aggregate dollar value of such contracts must be awarded to minority businesses and at least 5% of the aggregate dollar value of such contracts must be awarded to women's businesses.

The district must also ensure that if a person who is awarded a contract by the district or by a contractor for construction or renovation work, or professional services, cannot meet its dollar value goals for contracts or if the person who is awarded a contract for such construction or renovation work is unable to meet the minority and women hiring goals, the person must make good faith efforts to contract with the technical college district in which the contracts are to be performed to develop training programs designed to increase the pool of minority group members and women who are qualified to perform such contracts. The district is also required to hire an independent person to monitor, and a project coordinator to satisfy the district's and the contractor's compliance with, the minority contracting goals. The independent person is required to assess whether the district or contractor made a good faith effort to meet the goals.

The minority and women contracting goals under the bill also apply to the following:

1. Any insurance-funded repair work on football stadium facilities.

2. Any post-construction contract related to such facilities, for professional services and for development services, except that this provision does not apply to a contract for general maintenance that is provided by a political subdivision.

limitations on district, state actions

Under the bill, the district may not levy any taxes until the professional football team, the county board and the governing body of the municipality in which the football stadium facilities are located agree on how to fund maintenance of the facilities and agree on how to distribute the proceeds from the sale of naming rights related to the facilities. Also under the bill, the name of a football stadium may not be changed without the written consent of the municipality and the team.

The district is also prohibited from issuing bonds and the department of transportation (DOT) may not make any payments to a district (see below) unless a number of conditions are met, including the following:

1. The district and the team enter into a 30-year lease.

2. The district and the team agree that, if the team is sold or if its assets are liquidated before the bonds are paid off, the terms of the sale or transfer of the team must require that all outstanding bonds are immediately retired.

prevailing wage and hours of labor

Current law requires certain laborers, workers, mechanics and truck drivers employed on a state or local project of public works to be paid at the rate paid for a majority of the hours worked in the person's trade or occupation in the county in which the project is located and to be paid at a rate that is one and one-half times the person's hourly basic rate of pay (overtime pay) for all hours worked in excess of ten hours per day and 40 hours per week and for all hours worked on Saturdays, Sundays and certain holidays (prevailing wage and hours of labor law).

This bill prohibits a district from entering into a contract with a professional football team or a subsidiary or affiliate of the team (related party) for the acquisition and construction of football stadium facilities that are part of any facilities that are leased by the district to the team or to the related party unless the team or related party agrees not to permit any employe working for the football stadium facilities, who would be covered under the prevailing wage and hours of labor law if the football stadium facilities were a project of public works, to be paid less than the prevailing wage rate or to be required or permitted to work more than the prevailing hours of labor, unless the employe is paid overtime pay for all hours worked in excess of the prevailing hours of labor. The bill also requires the professional football team or related party to agree to require any contractor, subcontractor or agent thereof performing work on the football stadium facilities to keep and permit inspection of records, and otherwise to comply with the prevailing wage and hours of labor law, in the same manner as a contractor, subcontractor or agent thereof performing work on a project of public works is required to keep and permit inspection of records under, and otherwise comply with, the prevailing wage and hours of labor law. In addition, the bill requires the professional football team or related party to agree to otherwise comply with the prevailing wage and hours of labor law in the same manner as a local governmental unit contracting for the construction of a project of public works is required to comply with the prevailing wage and hours of labor law.

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 prevailing wage and hours of labor law.

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. 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 and may not exercise eminent domain powers.

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.

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 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.

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

AB892-engrossed, s. 1 Section 1. 13.94 (4) (a) 1. of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

AB892-engrossed,9,4 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.

AB892-engrossed, s. 2 Section 2. 13.94 (10) of the statutes is amended to read:

AB892-engrossed,10,21 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.

AB892-engrossed, s. 3 Section 3. 16.70 (14) of the statutes is amended to read:

AB892-engrossed,10,24 16.70 (14) "State" does not include a district created under subch. II or, III or IV of ch. 229.

AB892-engrossed, s. 4 Section 4. 18.03 (5s) of the statutes is amended to read:

AB892-engrossed,11,4 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.

AB892-engrossed, s. 5 Section 5. 19.42 (13) (a) of the statutes is amended to read:

AB892-engrossed,11,11 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.

AB892-engrossed, s. 6 Section 6. 19.59 (1) (a) of the statutes is amended to read:

AB892-engrossed,11,22 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.

AB892-engrossed, s. 7 Section 7. 19.59 (1) (g) 1. a. of the statutes is amended to read:

AB892-engrossed,12,3 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.

AB892-engrossed, 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

AB892-engrossed, s. 9 Section 9. 20.395 (1) (gv) of the statutes is created to read:

AB892-engrossed,12,9 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.

AB892-engrossed, s. 10 Section 10. 20.566 (1) (ge) of the statutes is created to read:

AB892-engrossed,13,2 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.

AB892-engrossed, s. 11 Section 11. 20.566 (1) (hp) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

AB892-engrossed,13,10 20.566 (1) (hp) Administration of endangered resource and professional football district voluntary payments. The amounts in the schedule for the payment of all administrative costs, including data processing costs, incurred in administering ss. 71.10 (5) and (5e) and 71.30 (10). All moneys certified under ss. 71.10 (5) (h) 1. and 71.30 (10) (h) 1. and the moneys specified for deposit in this appropriation under s. 71.10 (5e) (h) 4. shall be credited to this appropriation.

AB892-engrossed, s. 12 Section 12. 20.835 (4) (ge) of the statutes is created to read:

AB892-engrossed,13,17 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).

AB892-engrossed, s. 13 Section 13. 20.867 (5) of the statutes is created to read:

AB892-engrossed,13,22 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.

AB892-engrossed, s. 14 Section 14. 24.61 (2) (a) 8. of the statutes is created to read:

AB892-engrossed,13,25 24.61 (2) (a) 8. Bonds issued by a local professional football stadium district created under subch. IV of ch. 229.

AB892-engrossed, s. 15 Section 15. 25.17 (3) (b) 11. of the statutes is created to read: