SB371: Bill Text

This bill is explained in the Notes provided by the joint legislative council in the 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:

Prefatory note: This bill was prepared for the joint legislative council's special committee on the historic building code. The bill has the following key provisions:

Historic Building Code

Requires the department of commerce, in cooperation with the state historical society, to develop a pamphlet to inform owners of historic buildings about the scope and applicability of the historic building code.

Requires the department of commerce to interpret the historic building code liberally to facilitate the preservation and restoration of historic buildings.

Creates a process for the department of commerce to review decisions by local governments regarding compliance with a local ordinance or regulation, to determine if the local ordinance or regulation is in conflict with the historic building code. Also, this bill provides an informal process for the state historical society to review decisions of the department of commerce and local units of government regarding historic buildings and to negotiate possible changes in those decisions.

Allows local governments by ordinance to establish alternate standards for handrails and guardrails of historic buildings that are converted from single-family to multi-family use.

Requires the department of commerce to waive plan review and inspection fees for a preservation or restoration project affecting a building that is more than 100 years old and is listed or eligible for listing on the national or state register of historic places.

Other Structural Regulations

Modifies the current bed and breakfast statutes to allow structural additions, in buildings at least 50 years old, that would otherwise be prohibited by current statutes.

Requires consistency under state law with current federal law for certain housing accessibility requirements for physically disabled persons in certain historic buildings.

Requires local units of government to interpret liberally the local regulations that apply to historic structures in order to facilitate the preservation and restoration of historic buildings and structures.

Demolition of Historic Buildings

Provides that a municipal order to raze a historic building may be appealed by representatives of a local historical society or by the owner of a historic building that is within 200 yards of the building subject to the order.

Requires additional notice and the opportunity to request a public hearing with respect to municipal orders, permits or actions to raze historic buildings or buildings that are more than 50 years old.

Income Tax Credits for Historic Buildings

Makes the state income tax credit that supplements the federal income tax credit for renovation of historic buildings available earlier in the renovation process, by making it available when the state historic preservation officer approves the application, rather than upon final approval by the U.S. secretary of the interior.

Allows partners who share in the costs of renovating historic buildings to allocate among themselves the state supplemental income tax credit for the renovation costs.

Rural Historic Preservation

Requests a joint legislative council study, commencing in 2000, of methods to promote rural historic preservation.

Creates a grant program for the costs of renovating historic agricultural buildings or structures, with a 50% match requirement, funded in the amount of $75,000 in each year of the biennium, to be administered by the state historical society.

Makes an appropriation to the state historical society for the purpose of entering into a contract to conduct a survey to identify and document historic properties in rural areas.

For further information regarding the provisions in this bill, see the notes throughout the bill.

SB371, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB371, s. 2 Section 2. 20.245 (3) (f) of the statutes is created to read:

SB371,3,5 20.245 (3) (f) Historic agricultural building grant program. The amounts in the schedule for the historic agricultural building grant program under s. 44.46.

SB371, s. 3 Section 3. 44.46 of the statutes is created to read:

SB371,3,10 44.46 Historic agricultural building grant program. (1) In this section, "historic agricultural building" means any building or structure that is designed for agricultural purposes and that is significant in the history, architecture or culture of this state.

SB371,4,2 (2) From the appropriation under s. 20.245 (3) (f), the historical society shall award grants to owners of historic agricultural buildings to assist in the restoration of the buildings. To receive a grant, the owner shall match the amount of the grant, shall agree to use the total amount of funds to restore the historic agricultural building and shall agree to use the restored historic agricultural building in a manner consistent with the public policy expressed in s. 44.30.

Note: Under current law, the state historical society is assigned numerous responsibilities related to the preservation of historic and archeological resources in this state.

This bill creates a historic agricultural building grant program to be administered by the state historical society. Under the program, the state historical society is required to award grants to owners of historic agricultural buildings to fund the restoration of such buildings. Each grantee is required to make a matching contribution equalling the amount of the grant and to agree to use the restored building in a manner that is consistent with the state public policy on historic preservation.

The "public policy expressed in s. 44.30", as referenced in the new grant program, is as follows:

"The legislature finds that the historic, architectural, archaeological and cultural heritage of the state is among the most important assets of the state and furthermore that the social, economic and physical development of contemporary society threatens to destroy the remaining vestiges of this heritage. It is therefore declared to be the public policy and in the public interest of this state to engage in a comprehensive program of historic preservation to promote the use and conservation of such property representative of both the rural and urban heritage of the state for education, inspiration, pleasure and enrichment of the citizens of this state.".

SB371, s. 4 Section 4. 59.69 (4m) of the statutes is amended to read:

SB371,4,14 59.69 (4m) Historic preservation. A county, as an exercise of its zoning and police powers for the purpose of promoting the health, safety and general welfare of the community and of the state, may regulate by ordinance any place, structure or object with a special character, historic interest, aesthetic interest or other significant value, for the purpose of preserving the place, structure or object and its significant characteristics. The county may create a landmarks commission to designate historic landmarks and establish historic districts. The county may regulate all historic landmarks and all property within each historic district to preserve the historic landmarks and property within the district and the character of the district, and shall interpret the county's regulations liberally to facilitate the preservation and restoration of historic buildings and structures.

Note: This provision requires a county to interpret liberally its regulations that apply to historic structures in order to facilitate the preservation and restoration of historic buildings and structures.

SB371, s. 5 Section 5. 60.64 of the statutes is amended to read:

SB371,5,12 60.64 Historic preservation. The town board, in the exercise of its zoning and police powers for the purpose of promoting the health, safety and general welfare of the community and of the state, may regulate any place, structure or object with a special character, historic interest, aesthetic interest or other significant value for the purpose of preserving the place, structure or object and its significant characteristics. The town board may create a landmarks commission to designate historic landmarks and establish historic districts. The board may regulate all historic landmarks and all property within each historic district to preserve the historic landmarks and property within the district and the character of the district, and shall interpret the board's regulations liberally to facilitate the preservation and restoration of historic buildings and structures.

Note: This provision requires a town board to interpret liberally its regulations that apply to historic structures in order to facilitate the preservation and restoration of historic buildings and structures.

SB371, s. 6 Section 6. 62.23 (7) (em) of the statutes is amended to read:

SB371,6,6 62.23 (7) (em) Historic preservation. A city, as an exercise of its zoning and police powers for the purpose of promoting the health, safety and general welfare of the community and of the state, may regulate by ordinance, or if a city contains any property that is listed on the national register of historic places in Wisconsin or the state register of historic places shall, not later than 1995, enact an ordinance to regulate, any place, structure or object with a special character, historic, archaeological or aesthetic interest, or other significant value, for the purpose of preserving the place, structure or object and its significant characteristics. A city may create a landmarks commission to designate historic or archaeological landmarks and establish historic districts. The city may regulate, or if the city contains any property that is listed on the national register of historic places in Wisconsin or the state register of historic places shall regulate, all historic or archaeological landmarks and all property within each historic district to preserve the historic or archaeological landmarks and property within the district and the character of the district, and shall interpret the city's regulations liberally to facilitate the preservation and restoration of historic buildings and structures.

Note: This provision requires a city to interpret liberally its regulations that apply to historic structures in order to facilitate the preservation and restoration of historic buildings and structures.

SB371, s. 7 Section 7. 66.038 of the statutes is created to read:

SB371,6,9 66.038 Razing historic buildings and buildings that are more than 50 years old. (1) Definitions. In this section:

SB371,6,12 (a) "Authority" means a housing authority under ss. 66.40 to 66.404, a redevelopment authority under s. 66.431 or a housing and community development authority under s. 66.4325.

SB371,6,13 (b) "Historic building" has the meaning given in s. 66.05 (9) (a) 1m.

SB371,6,15 (c) "Local governmental unit" means a city, village, town or county, and includes an authority acting on behalf of or at the direction of a city, village or town.

SB371,6,18 (d) "Resident", in the case of a local governmental unit that is an authority, means a resident of the city, village or town on whose behalf or at whose direction the authority is acting.

SB371,7,2 (2) Notice to state historical society. If a local governmental unit issues an order or permit or other similar directive or authorization to raze a building, or if a local governmental unit intends to raze a building that is owned by the local governmental unit, and the building is either a historic building or more than 50 years old, the local governmental unit shall notify the state historical society of the order, permit, directive or authorization or of its intent.

SB371,7,5 (3) Delay in razing. (a) Except as provided in sub. (4) (a) 3. and (b), a local governmental unit may not raze a building subject to sub. (2) during the following period after the notice is given to the state historical society:

SB371,7,6 1. For a historic building, 60 days.

SB371,7,7 2. For a building more than 50 years old that is not a historic building, 30 days.

SB371,7,9 (b) Upon request by the state historical society, the local governmental unit may extend the period of delay in razing under par. (a).

SB371,7,13 (c) During the period of delay in razing under par. (a) and during any extension of a period of delay, the state historical society shall have access to the building to create or preserve a historic record and access to the building shall be a condition of the order, permit, directive or authorization issued by the local governmental unit.

SB371,7,16 (4) Opportunity to request public hearing; written findings. (a) 1. For a building subject to sub. (2), the state historical society may direct the local governmental unit to provide notice and the opportunity to request a public hearing.

SB371,7,25 2. If the state historical society directs the local governmental unit to provide notice and the opportunity to request a public hearing under subd. 1., the local governmental unit shall provide notice to any person who requests notice by mail and by publishing a class 1 notice, under ch. 985. Within 30 days after the local governmental unit publishes the notice, if 5 or more residents of the local governmental unit submit a request for a hearing on the matter, the local governmental unit shall either hold a public hearing or make written findings setting forth the reasons for denying the request for a hearing and responding to issues raised in the request for a hearing.

SB371,8,4 3. If 5 or more residents of the local governmental unit submit a request for a hearing under subd. 2., the period of delay in razing under sub. (3) (a) does not end until the local governmental unit holds the public hearing or makes written findings, as required under subd. 2.

SB371,8,9 (b) If the state historical society does not direct the local governmental unit to provide notice and the opportunity to request a public hearing, the state historical society may waive the period of delay in razing under sub. (3) (a) if the state historical society determines that the delay is not necessary to accomplish the purpose of sub. (3) (c).

SB371,8,12 (5) Reuse of building materials. The owner of the building that is razed shall reuse the building materials or contract with a demolition contractor who will reuse the building materials, to the maximum extent feasible.

SB371,8,14 (6) Applicability. This section does not apply to part of a building that is not a historic building if that part of the building is 50 years old or less.

Note: This provision creates a new requirement related to an order or permit issued by a local governmental unit to raze a building, or a decision by a local governmental unit to raze a building that it owns, if the building is a historic building or is more than 50 years old. "Local governmental unit" is defined to mean a city, village, town or county, and includes a housing, redevelopment or housing and community development authority acting on behalf of, or at the direction of, a city, village or town. This provision expands a provision in current s. 66.05 (9) (c), which is a statute relating to demolition orders. This provision also applies to housing authorities.

This provision requires a local governmental unit to notify the state historical society of the order or permit or of its intent. The bill requires a delay in razing the property to allow time for the state historical society to document the property and create a suitable historic record of it. Also, this delay will give time for public review of the decision to raze the building.

If the state historical society does not waive further review, the local governmental unit must provide notice to any person who requests notice by mail and by publishing a class 1 notice (a one-time newspaper notice) under ch. 985, stats. Thereafter, 5 or more residents of the local governmental unit may request a hearing and the local governmental unit is required either to hold a public hearing or to make written findings setting forth the reasons for denying the request for a hearing and responding to issues raised in the request for a hearing.

The time periods specified in this provision do not affect the provisions for judicial review. Under s. 68.13, stats., any party to a proceeding that results in a final determination may seek review by a court within 30 days of receipt of the final determination.

Also, the new statute requires reuse of building materials, to the maximum extent feasible, following demolition of the building.

SB371, s. 8 Section 8. 66.05 (1m) (a) of the statutes is amended to read:

SB371,9,23 66.05 (1m) (a) The governing body or the inspector of buildings or other designated officer in every municipality may order the owner of premises upon which is located any building or part thereof within such municipality, which in its judgment is so old, dilapidated or has become so out of repair as to be dangerous, unsafe, insanitary or otherwise unfit for human habitation, occupancy or use, and so that it would be unreasonable to repair the same, to raze and remove such building or part thereof and restore the site to a dust-free and erosion-free condition, or if it can be made safe by repairs to repair and make safe and sanitary or to raze, remove and restore the site to a dust-free and erosion-free condition at the owner's option; or where there has been a cessation of normal construction of any building for a period of more than 2 years, to raze and remove such building or part thereof and restore the site to a dust-free and erosion-free condition. The order shall specify a time in which the owner shall comply therewith and specify repairs, if any. It shall be served on the owner of record or the owner's agent where an agent is in charge of the building in the manner provided for service of a summons in the circuit court. If the owner and the owner's agent cannot be found, or if the owner is deceased and an estate has not been opened, the order may be served by posting it on the main entrance of the building and by publishing it as a class 1 notice, under ch. 985, before the time limited in the order commences to run. The time limited in the order commences to run from the date of service upon the owner or the agent in the manner of a summons or, if the owner and agent cannot be found, from the date that the order was posted on the building. The order shall also be served on the holder of any encumbrance of record by 1st class mail at the last-known address and by publication as a class 1 notice under ch. 985.

Note: This amendment deletes "old" as one of the conditions that may lead to a municipal decision to order the razing of a building. The age of a building does not determine the condition of the building. Municipal decisions to order the razing of a building are appropriately based on the other conditions addressed in the statute, such as "dilapidated" and "out of repair".

SB371, s. 9 Section 9. 66.05 (3) of the statutes is amended to read:

SB371,11,2 66.05 (3) Anyone affected by any such order shall within the time provided by s. 893.76 apply to the circuit court for an order restraining the inspector of buildings or other designated officer from razing and removing the building or part thereof and restoring the site to a dust-free and erosion-free condition or forever be barred. The hearing shall be held within 20 days and shall be given preference. The court shall determine whether the order of the inspector of buildings is reasonable, and if found reasonable the court shall dissolve the restraining order, and if found not reasonable the court shall continue the restraining order or modify it as the circumstances require. Costs shall be in the discretion of the court. If the court finds that the order of the inspector of buildings is unreasonable, the inspector of buildings or other designated officer shall issue no other order under this section in regard to the same building or part thereof until its condition is substantially changed. The remedies provided in this subsection are exclusive remedies and anyone affected by such an order of the inspector shall not be entitled to recover any damages for the razing and removal of any such building and the restoration of the site to a dust-free and erosion-free condition. For the purposes of this subsection, if the order requires the razing of a historic building, as defined in sub. (9) (a) 1m., persons affected by the order include representatives of a local historical society and the owner of a historic building, as defined in sub. (9) (a) 1m., that is located within 200 yards of the historic building that is subject to the order.

Note: Section 66.05, stats., relates to local orders to repair or raze dilapidated buildings. The current statute includes provisions related to historic buildings that require a delay in implementation of the order and a different presumption regarding the reasonableness of the cost of repairs.

Any order under s. 66.05, stats., may be appealed to circuit court by an "affected person". The issue in the appeal is the reasonableness of the order. The current statute does not define who may be an affected person. This is a matter for the court to decide, and there have not been any appellate court decisions on this issue. It is possible that a court would allow a person with a demonstrated interest in historic preservation to appeal a local order requiring demolition of a historic building, although there is no assurance of this under the current statute.

The bill does not define "affected person", but rather provides that the term "affected person" includes representatives of a local historical society and owners of historic buildings located within 200 yards of the historic building that is subject to the order.

The definition of "historic building" that is cross-referenced in this provision is "any building or object listed on, or any building or object within and contributing to a historic district listed on, the national register of historic places in Wisconsin, the state register of historic places or a list of historic places maintained by a municipality".

SB371, s. 10 Section 10. 66.05 (9) (c) of the statutes is amended to read:

SB371,11,15 66.05 (9) (c) If an order is issued under this section to raze and remove a historic building and restore the site to a dust-free and erosion-free condition, an application is made for a permit to raze and remove a historic building and restore the site to a dust-free and erosion-free condition or a municipality intends to raze and remove a municipally owned historic building and restore the site to a dust-free and erosion-free condition, the municipality in which the historic building is located shall notify the state historical society of the order, application or intent. No historic building may be razed and removed nor the site restored to a dust-free and erosion-free condition for 30 days after the notice is given. During the 30-day period, the state historical society shall have access to the historic building to create or preserve a historic record or a building that is more than 50 years old, s. 66.038 applies.

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 Section 11. 66.05 (10) (a) and (b) of the statutes are consolidated, renumbered 66.05 (10) and amended to read:

SB371,12,8 66.05 (10) First class cities may adopt by ordinance alternate or additional provisions governing the placarding, closing, razing and removal of a building and the restoration of the site to a dust-free and erosion-free condition. (b) This subsection shall be liberally construed to provide 1st class cities with the largest possible power and leeway of action, except that any alternate or additional provision adopted 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 Section 12 . 71.07 (9m) (c) of the statutes is amended to read:

SB371,12,14 71.07 (9m) (c) No person may claim the credit under this subsection unless the claimant includes with the claimant's return evidence that the rehabilitation was approved recommended by the state historic preservation officer for approval by the secretary of the interior under 36 CFR 67.6 before the physical work of construction, or 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.