SB371,11,154
66.05
(9) (c) If an order is issued under this section to raze and remove a historic
5building
and restore the site to a dust-free and erosion-free condition, an application
6is made for a permit to raze and remove a historic building and restore the site to a
7dust-free and erosion-free condition or a municipality intends to raze and remove
8a municipally owned historic building and restore the site to a dust-free and
9erosion-free condition, the municipality in which the historic building is located
10shall notify the state historical society of the order, application or intent.
No historic
11building may be razed and removed nor the site restored to a dust-free and
12erosion-free condition for 30 days after the notice is given. During the 30-day period,
13the state historical society shall have access to the historic building to create or
14preserve a historic record or a building that is more than 50 years old, s. 66.038
15applies.
Note: The material deleted from s. 66.05 (9) (c) is recreated and expanded in s.
66.038 as created by this bill.
SB371, s. 11
1Section
11. 66.05 (10) (a) and (b) of the statutes are consolidated, renumbered
266.05 (10) and amended to read:
SB371,12,83
66.05
(10) First class cities may adopt by ordinance alternate or additional
4provisions governing the placarding, closing, razing and removal of a building and
5the restoration of the site to a dust-free and erosion-free condition.
(b) This
6subsection shall be liberally construed to provide 1st class cities with the largest
7possible power and leeway of action
, except that any alternate or additional provision
8adopted shall be no less stringent than the corresponding provision in s. 66.038.
Note: Under the current statute, a 1st class city (the city of Milwaukee) may adopt
alternate or additional provisions regarding orders to demolish buildings. This provision
creates an exception to that broad authority by requiring a 1st class city to comply with
the requirements in the cross-referenced statute, as affected by this bill.
SB371, s. 12
9Section
12
. 71.07 (9m) (c) of the statutes is amended to read:
SB371,12,1410
71.07
(9m) (c) No person may claim the credit under this subsection unless the
11claimant includes with the claimant's return evidence that the rehabilitation was
12approved recommended by the state historic preservation officer for approval by the
13secretary of the interior under
36 CFR 67.6 before the physical work of construction,
14or destruction in preparation for construction, began.
Note: Under the U.S. Internal Revenue Code, the owner of an income producing
historic building is eligible for a federal income tax credit equal to 20% of certain specified
costs of rehabilitating the historic building. The building must be listed on the national
register of historic places or eligible for listing or located in certain national, state or local
historic districts. The rehabilitation work must comply with standards that have been
established by the U.S. Secretary of the Interior.
Wisconsin provides a supplement to the federal income tax credit equal to 5% of the
eligible costs of rehabilitation. This Section amends s. 71.07 (9m) (c), stats., which
provides the supplemental state income tax credit for historic rehabilitation.
Under the current statutes, the state income tax credit is only available if the state
tax return includes evidence that the rehabilitation was approved by the secretary of the
interior before the physical work of rehabilitation was commenced. As the federal
program has been implemented by the secretary of the interior, the state historic
preservation officer must first recommend approval of the project before the application
is considered by the secretary of interior. This bill makes the state supplement available
upon recommendation of the state historic preservation officer, rather than final approval
by the secretary of the interior, which will allow owners to commence projects sooner. If,
for any reason, the owner is determined not to be eligible for the federal tax credit, the
owner will still be eligible for the 5% state supplement based on the approval by the state
historic preservation officer.
SB371, s. 13
1Section
13
. 71.21 (6) of the statutes is created to read:
SB371,13,72
71.21
(6) Credits computed by a partnership under s. 71.07 (9m), 71.28 (6) or
371.47 (6) may be allocated to partners either as provided under this chapter or
4pursuant to an agreement among the partners establishing an alternate allocation
5method. The partners shall notify the department of an agreement within 30 days
6after the agreement is executed and shall provide any additional information
7requested by the department regarding the agreement.
Note: This Section relates to the state supplement to the federal historic
rehabilitation income tax credit. The supplement is equal to 5% of the eligible costs of
historic preservation.
Under current law, each partner in a partnership is allocated a portion of any tax
credit for which the partnership is eligible based on the partnership agreement. The
partnership agreement must have economic substance.
This bill creates s. 71.21 (6) to provide that a tax credit for historic preservation
claimed by a partnership may be allocated to the partners either as permitted under
current law or pursuant to an agreement executed by the partners that establishes an
alternate distribution method. This will allow partners who do not have a Wisconsin
income tax liability (e.g., out-of-state investors) to transfer the credit to partners who do.
The bill requires the partners to notify the department of revenue of the agreement
within 30 days of executing such an agreement and also requires the partners to provide
any additional information requested by the department of revenue.
SB371, s. 14
8Section
14
. 71.28 (6) (c) of the statutes is amended to read:
SB371,13,139
71.28
(6) (c) No person may claim the credit under this subsection unless the
10claimant includes with the claimant's return evidence that the rehabilitation was
11approved recommended by the state historic preservation officer for approval by the
12secretary of the interior under
36 CFR 67.6 before the physical work of construction,
13or destruction in preparation for construction, began.
Note: This amendment corresponds with the amendment in this bill to s. 71.07
(9m) (c), stats., which includes an explanatory note.
SB371, s. 15
14Section
15
. 71.47 (6) (c) of the statutes is amended to read:
SB371,14,5
171.47
(6) (c) No person may claim the credit under this subsection unless the
2claimant includes with the claimant's return evidence that the rehabilitation was
3approved recommended by the state historic preservation officer for approval by the
4secretary of the interior under
36 CFR 67.6 before the physical work of construction,
5or destruction in preparation for construction, began.
Note: This amendment corresponds with the amendment in this bill to s. 71.07
(9m) (c), stats., which includes an explanatory note.
SB371, s. 16
6Section
16
. 101.05 (2) of the statutes is amended to read:
SB371,14,127
101.05
(2) A bed and breakfast establishment, as defined under s. 254.61 (1),
8is not subject to
rules on residential occupancy or to other building codes adopted by
9the department under this subchapter
, except that the uniform dwelling code
10adopted in rules promulgated under s. 101.63 (1) applies to the 3rd floor level of a bed
11and breakfast establishment that uses, other than as storage, the 3rd floor level of
12the bed and breakfast establishment structure.
Note: The current statutes provide that the 3rd floor of a bed and breakfast
establishment is subject to the uniform dwelling code if the 3rd floor is used for purposes
other than storage. The bill moves the provision related to the 3rd floor of a bed and
breakfast establishment so that it appears in the statutes related to the uniform dwelling
code. [See Section 28
.] This change is solely for the purpose of better statutory
organization and is not intended to make any change in the current building code
provisions applicable to bed and breakfast establishments.
SB371, s. 17
13Section
17. 101.121 (3) (c) of the statutes is created to read:
SB371,14,1514
101.121
(3) (c) The historic building code shall be liberally interpreted to
15facilitate the preservation and restoration of qualified historic buildings.
Note: The department of commerce is authorized to promulgate the historic
building code under s. 101.121, stats. The statute includes a statement of legislative
purpose, as follows:
"101.121 (1) Purpose. It is the purpose of this section to provide alternative
standards, when necessary, for the preservation or restoration of buildings or structures
designated as historic buildings. The development and application of these alternative
standards is a matter of statewide concern. These alternative standards are intended to
facilitate the restoration of historic buildings so as to preserve their original or restored
architectural elements and features, to encourage energy conservation, to permit a
cost-effective approach to preservation and restoration and to provide for the health,
safety and welfare of occupants and visitors in historic buildings.".
The legislature incorporated additional guidance regarding the purpose of the
statute into the substantive provisions of s. 101.121 (3) (a), stats., as follows:
"101.121 (3) (a) For any rule under this chapter or ch. 145 which applies to
buildings, the department may provide an alternative rule which accomplishes the same
general purpose and applies only to qualified historic buildings. These alternative rules
shall permit, to the maximum extent possible, the use of original or duplicates of original
materials, the maintenance of the original appearance of all components of a historic
building and the use of original construction techniques...."
The special committee determined that some decisions regarding the
implementation of the historic building code may be unnecessarily restrictive. The
additional statutory language proposed in this Section creates an express statement of
the legislature's intent that the statute is to be interpreted liberally to facilitate the
preservation and restoration of historic buildings.
The intent is not to shift the balance in the historic building code between
preservation and restoration of historic buildings on one hand, and public health, safety
and welfare on the other hand. The intent is to favor the preservation and restoration
of historic buildings in questions involving close judgments.
SB371, s. 18
1Section
18. 101.121 (4) (a) of the statutes is renumbered 101.121 (4) (a) 1.
SB371, s. 19
2Section
19. 101.121 (4) (a) 2. of the statutes is created to read:
SB371,15,83
101.121
(4) (a) 2. Upon the request of the owner of a qualified historic building,
4the department shall review any decision of a city, village, town or county that
5requires the owner to comply with a provision of a county or municipal building code,
6or of any other local ordinance or regulation, to determine if the provision concerns
7a matter dealt with in the historic building code. The procedures in s. 101.02 (7)
8apply to any review conducted by the department under this subdivision.
Note: Section 101.121 (4) (a), stats., authorizes the owner of a "qualified historic
building" to elect to be subject to the historic building code. A qualified historic building
is a building that is listed on the national or state register of historic places or a certified
local register of historic property, or is within a historic district on one of those lists and
has been determined to contribute to the historic significance of the district. Under the
historic building code, the owner of the historic building may use alternative standards
that allow preservation of the historic aspects of the building while still providing for the
health, safety and welfare of occupants and visitors in the building.
One of the consequences of the election to use the historic building code is that the
owner of the historic building is not required to comply with any provision of a county or
municipal building code or other local ordinance or regulation that concerns a "matter
dealt with" in the historic building code (the phrase used in the statute). In the rules
creating the historic building code, the department of commerce has elaborated on this
statutory provision by providing explicitly that local regulations pertaining to land use,
zoning, fire districts or "other similar requirements" are not affected by the historic
building code. [s. Comm 70.04 (2), Wis. adm. code.]
The statutes contain a general procedure, in s. 101.02 (7), stats., to resolve conflicts
between local standards, decisions and ordinances and the statutes and rules enforced
by the department of commerce. The statute provides that local units of government
continue to have authority to enact and enforce regulations for the protection of public
health and safety. However, rules and decisions of the department of commerce are
deemed by the statute to amend or modify conflicting local regulations. Any person who
is affected by a local regulation that is in conflict with a state regulation or an order of
the department may petition for a hearing by the department on whether there is a
conflict, and the department may nullify a local regulation that conflicts with state
regulations.
The appeal process in s. 101.02 (7), stats., focuses on conflicts between state and
local safety or health regulations. This provision of the bill makes it clear that the
department may determine the proper scope of local regulation with respect to buildings
that are subject to the historic building code, including issues related to historic
preservation and restoration.
SB371, s. 20
1Section
20. 101.121 (5) of the statutes is created to read:
SB371,16,62
101.121
(5) Advisory opinion of state historical society. (a) The owner of a
3qualified historic building may submit to the state historical society a request for an
4advisory opinion with respect to any decision of the department, or of a city, village,
5town or county that is an agent of the department, if the decision pertains to any of
6the following:
SB371,16,87
1. This section or a rule promulgated under this section, except for a decision
8of the department under sub. (4) (a) 2.
SB371,16,99
2. A variance to a rule promulgated under this section.
SB371,16,1110
3. The inspection of a qualified historic building for compliance with a rule
11promulgated under this section.
SB371,16,1412
(b) Upon receiving a request under par. (a), the state historical society shall
13review all information related to the decision and shall render a written opinion on
14the following:
SB371,16,1615
1. Whether the decision is consistent with this section and the rules
16promulgated under this section.
SB371,16,1917
2. Whether the alternative decision requested by the owner of the qualified
18historic building, or any other alternative decision, is consistent with this section and
19the rules promulgated under this section.
SB371,17,6
1(c) The state historical society may negotiate with the department or the city,
2village, town or county and the owner of the qualified historic building to seek
3agreement on an alternative decision that will allow the greatest possible degree of
4restoration and preservation of the qualified historic building, while continuing to
5meet the standards for the health, safety and welfare of occupants of and visitors to
6the qualified historic building.
SB371,17,87
(d) The department or a city, village, town or county may modify any decision
8described under par. (a) based on negotiations with the state historical society.
SB371,17,109
(e) This subsection does not modify any procedures for appeal of a decision of
10the department or of a city, village, town or county under this section.
Note: Current s. 101.02 (7) provides a formal appeals process for decisions of the
department of commerce and local units of government acting as agents of the
department with respect to building code issues. The review process involves a review
within the department, followed by judicial review. The standards for judicial review
require the court to uphold the decision of the department or the local unit of government
if there is "substantial evidence" to support the decision, a difficult standard for a building
owner to overcome. Also, judicial review is time-consuming and expensive.
This provision of the bill creates a new, informal process for review of a decision of
the department or the local unit of government. The request for review must be
submitted to the state historical society. The state historical society reviews all
information related to the decision and renders an opinion on whether the decision of the
department or the local unit of government is consistent with the historic building code
and whether there are other ways to meet the requirements and objectives of the historic
building code. The bill authorizes the historical society to negotiate with the department,
the local unit of government and the historic building owner. The department or local unit
of government may modify its decision based on the negotiations.
This new procedure does not change any time limits or procedures for formal
review of any decisions.
SB371, s. 21
11Section
21. 101.121 (7) of the statutes is created to read:
SB371,17,1612
101.121
(7) Informational pamphlet. (a) In cooperation with the state
13historical society, the department shall develop an informational pamphlet designed
14to increase awareness and use of the historic building code. The pamphlet shall be
15updated as statutes and rules relating to the historic building code are amended. The
16pamphlet shall include the following information:
SB371,18,1
11. A description of the historic building code.
SB371,18,32
2. A description of the types and qualities of buildings that are subject to the
3historic building code.
SB371,18,64
3. An explanation of how the owner of a qualified historic building may elect
5to be subject to the historic building code and a description of the consequences of that
6election.
SB371,18,87
4. A description of other alternative building codes that a historic building
8owner may be eligible to use.
SB371,18,109
5. A description of where further information regarding historic buildings and
10the historic building code may be obtained.
SB371,18,1311
(b) The department and the state historical society shall distribute the
12pamphlets as they consider necessary to increase awareness of the historic building
13code.
Note: This Section creates s. 101.121 (7), stats., which requires the department
of commerce, in cooperation with the state historical society, to develop a pamphlet
designed to inform owners of historic buildings of the scope and applicability of the
historic building code and alternatives to using the historic building code. The pamphlet
is also intended to increase awareness of the historic building code. The department of
commerce must update the pamphlet as statutes and rules relating to the historic
building code are amended. The provision requires the department of commerce and the
state historical society to distribute the pamphlets as they consider necessary to increase
awareness of the historic building code.
SB371, s. 22
14Section
22. 101.122 (4) (b) 1. of the statutes is amended to read:
SB371,18,1615
101.122
(4) (b) 1.
Order Subject to s. 66.038, order demolition of the rental unit
16no sooner than 90 days after the order.
Note: This provision applies the requirements of s. 66.038, as created by this bill,
to decisions of the department of commerce or a city, village or town to require demolition
of a property that does not comply with the rental unit energy efficiency requirements of
s. 101.122, stats.
SB371, s. 23
17Section
23. 101.132 (1m) of the statutes is created to read:
SB371,19,5
1101.132
(1m) Compliance with federal standards. All rules promulgated by
2the department under this section relating to qualified historic buildings, as defined
3in s. 101.121 (2) (c), shall comply with and not exceed the requirements of the Fair
4Housing Act under
42 USC 3601 to
3620 and the Americans with Disabilities Act
5under
42 USC 12181 and regulations adopted under those acts.
Note: This Section provides that all rules promulgated by the department of
commerce relating to requirements that housing be accessible to physically disabled
persons, as they relate to qualified historic buildings, must comply with and not exceed
the requirements of the federal Fair Housing Law and the Americans with Disabilities
Act and any regulations adopted under those acts. Under this requirement, the
department of commerce would be required to amend its rules so that: (1) if an existing
qualified historic building with mixed occupancies is remodeled or added to and the gross
interior area of the building after the remodeling or addition is greater than 20,000
square feet, interior circulation between floor levels would not be required; and (2) the
state fair housing law would not be applicable to existing qualified historic buildings
undergoing a change of use if the building is changed to a covered multi-family housing
use and the building is remodeled or added to.
SB371, s. 24
6Section
24
. 101.132 (2) (b) 3m. of the statutes is created to read:
SB371,19,87
101.132
(2) (b) 3m. The requirements under this paragraph do not apply to
8qualified historic buildings, as defined in s. 101.121 (2) (c).
Note: This Section provides that s. 101.132 (2) (b), stats., relating to making
housing accessible to physically disabled persons when the housing is remodeled, does
not apply to qualified historic buildings. Current s. 101.132 (2) (b), stats., provides as
follows:
"101.132 (2) (b) Remodeling. 1. If more than 50% of the interior square footage
of any housing with 3 or more dwelling units is to be remodeled, the entire housing shall
conform to the standards in par. (a), regardless of when the housing was first intended
for occupancy.
2. If 25% to 50% of the interior square footage of any housing with 3 or more
dwelling units is to be remodeled, that part of the housing that is to be remodeled shall
conform to the standards in par. (a), regardless of when the housing was first intended
for occupancy.
3. If less than 25% of the interior square footage of any housing with 3 or more
dwelling units is to be remodeled, the remodeling is not subject to the standards in par.
(a) unless the alteration involves work on doors, entrances, exits or toilet rooms, in which
case the doors, entrances, exits or toilet rooms shall conform to the standards in par. (a)
regardless of when the housing was first intended for occupancy.
4. The department may grant a variance or waiver from the requirements under
this paragraph relating to exterior accessibility using the standards and procedures
under par. (c).".
The intent of this change is to make Wisconsin statutes relating to qualified
historic buildings consistent with the federal fair housing law. The federal Fair Housing
Law applies only to buildings which are first occupied after March 31, 1991.
SB371, s. 25
1Section
25. 101.19 (1) (intro.) of the statutes is amended to read:
SB371,20,52
101.19
(1) (intro.)
The Except as provided in sub. (1m), the department
, by rule
3promulgated under ch. 227, shall
fix and collect
promulgate rules establishing and
4providing for the collection of fees which shall, as closely as possible, equal the cost
5of providing the following services:
SB371, s. 26
6Section
26. 101.19 (1m) of the statutes is created to read:
SB371,20,107
101.19
(1m) The department shall waive the fees under sub. (1) (a), (am), (b),
8(d) and (i) for any preservation or restoration of a building or structure that is more
9than 100 years old if the state historic preservation officer certifies to the department
10all of the following:
SB371,20,1211
(a) That the plan for the preservation or restoration of the building or structure
12complies with the standards promulgated under s. 44.02 (24).
SB371,20,1913
(b) That the building or structure is listed on the national register of historic
14places in Wisconsin or the state register of historic places, is determined by the state
15historical society to be eligible for listing on the national register of historic places
16in Wisconsin or the state register of historic places, or is located in a historic district
17which is listed in the national register of historic places in Wisconsin or the state
18register of historic places and is certified by the state historic preservation officer as
19being of historic significance to the district.
Note: Under current s. 101.19, stats., the department of commerce is required to
charge fees to recover the costs of services it provides related to plan review and
inspection of construction projects that are subject to regulation by the department. The
fees include fees for plan review, inspections, variances and copying.
This bill requires the department of commerce to waive those fees for a
preservation or restoration project affecting a building or structure that is more than 100
years old. To qualify for the waiver of fees, the state historic preservation officer must
certify to the department of commerce that the building or structure is listed on or eligible
for listing on the national or state register of historic places and the plans for the
preservation or restoration comply with the standards that are applicable to projects that
qualify for the income tax credit for historic property renovations.
SB371, s. 27
1Section
27
. 101.63 (1) of the statutes is renumbered 101.63 (1) (intro.) and
2amended to read:
SB371,21,123
101.63
(1) (intro.) Adopt rules which establish standards for the construction
4and inspection of one- and 2-family dwellings and components thereof. Where
5feasible, the standards used shall be those nationally recognized and shall apply to
6the dwelling and to its electrical, heating, ventilating, air conditioning and other
7systems, including plumbing, as defined in s. 145.01 (10). No set of rules may be
8adopted which has not taken into account the conservation of energy in construction
9and maintenance of dwellings and the costs of specific code provisions to home buyers
10in relationship to the benefits derived from the provisions.
Rules promulgated under
11this subsection do not apply to a bed and breakfast establishment, as defined in s.
12254.61 (1), except that the rules apply to all of the following:
SB371, s. 28
13Section
28
. 101.63 (1) (a) and (b) of the statutes are created to read:
SB371,21,1514
101.63
(1) (a) The 3rd floor level of a bed and breakfast establishment that uses
15that level other than as storage.
SB371,21,1616
(b) A structural addition that is specified under s. 254.61 (1) (f) 2.