SB442, s. 26 3Section 26. 70.11 (40) of the statutes is created to read:
SB442,15,54 70.11 (40) Local cultural arts district. Property of a local cultural arts
5district under subch. V of ch. 229, except any of the following:
SB442,15,116 (a) Property that is not a part of the physical structure of a cultural arts facility,
7as defined under s. 229.841 (5), if that property is used for a retail business or a
8restaurant, unless the retail business or restaurant is operated by the local cultural
9arts district or by a corporation, organization or association described in section 501
10(c) 3 of the Internal Revenue Code that is exempt from taxation under section 501
11(a) of the Internal Revenue Code.
SB442,15,1312 (b) A parking lot or parking structure that is not used to support the operation
13of a cultural arts facility, as defined under s. 229.841 (5).
SB442, s. 27 14Section 27. 71.05 (1) (c) 6. of the statutes is created to read:
SB442,15,1515 71.05 (1) (c) 6. A local cultural arts district created under subch. V of ch. 229.
SB442, s. 28 16Section 28. 71.05 (1) (c) 7. of the statutes is created to read:
SB442,15,1817 71.05 (1) (c) 7. The Wisconsin Health and Educational Facilities Authority
18under ch. 231, if the bonds are issued with respect to a local cultural arts district.
SB442, s. 29 19Section 29. 71.26 (1) (bm) of the statutes is amended to read:
SB442,15,2320 71.26 (1) (bm) Certain local districts. Income of a local exposition district
21created under subch. II of ch. 229 or, a local professional baseball park district
22created under subch. III of ch. 229 or a local cultural arts district created under
23subch. V of ch. 229
.
SB442, s. 30 24Section 30. 71.26 (1m) (g) of the statutes is amended to read:
SB442,16,2
171.26 (1m) (g) Those issued under s. 66.066 by a local professional baseball
2park district or a local cultural arts district.
SB442, s. 31 3Section 31. 71.26 (1m) (h) of the statutes is created to read:
SB442,16,54 71.26 (1m) (h) Those issued under ch. 231 with respect to a local cultural arts
5district.
SB442, s. 32 6Section 32. 71.36 (1m) of the statutes is amended to read:
SB442,17,37 71.36 (1m) A tax-option corporation may deduct from its net income all
8amounts included in the Wisconsin adjusted gross income of its shareholders, the
9capital gain deduction under s. 71.05 (6) (b) 9. and all amounts not taxable to
10nonresident shareholders under ss. 71.04 (1) and (4) to (9) and 71.362. For purposes
11of this subsection, interest on federal obligations, obligations issued under s. 66.066
12by a local professional baseball park district or a local cultural arts district,
13obligations issued under ss. 66.40, 66.431 and 66.4325, obligations issued under ch.
14231 with respect to a local cultural arts district,
obligations issued under s. 234.65
15to fund an economic development loan to finance construction, renovation or
16development of property that would be exempt under s. 70.11 (36) and obligations
17issued under subch. II of ch. 229 is not included in shareholders' income. The
18proportionate share of the net loss of a tax-option corporation shall be attributed and
19made available to shareholders on a Wisconsin basis but subject to the limitation and
20carry-over rules as prescribed by section 1366 (d) of the internal revenue code. Net
21operating losses of the corporation to the extent attributed or made available to a
22shareholder may not be used by the corporation for further tax benefit. For purposes
23of computing the Wisconsin adjusted gross income of shareholders, tax-option items
24shall be reported by the shareholders and those tax-option items, including capital
25gains and losses, shall retain the character they would have if attributed to the

1corporation, including their character as business income. In computing the tax
2liability of a shareholder, no credit against gross tax that would be available to the
3tax-option corporation if it were a nontax-option corporation may be claimed.
SB442, s. 33 4Section 33. 71.45 (1t) (g) of the statutes is amended to read:
SB442,17,65 71.45 (1t) (g) Those issued under s. 66.066 by a local professional baseball park
6district or a local cultural arts district.
SB442, s. 34 7Section 34. 71.45 (1t) (h) of the statutes is created to read:
SB442,17,98 71.45 (1t) (h) Those issued under ch. 231 with respect to a local cultural arts
9district.
SB442, s. 35 10Section 35. 77.54 (9a) (h) of the statutes is created to read:
SB442,17,1111 77.54 (9a) (h) A local cultural arts district under subch. V of ch. 229.
SB442, s. 36 12Section 36. 111.02 (7) of the statutes is amended to read:
SB442,17,2013 111.02 (7) The term "employer" means a person who engages the services of an
14employe, and includes any person acting on behalf of an employer within the scope
15of his or her authority, express or implied, but shall not include the state or any
16political subdivision thereof, or any labor organization or anyone acting in behalf of
17such organization other than when it is acting as an employer in fact. For purposes
18of this subsection, a person who engages the services of an employe includes the
19University of Wisconsin Hospitals and Clinics Authority and a local cultural arts
20district created under subch. V of ch. 229
.
SB442, s. 37 21Section 37. 111.70 (1) (j) of the statutes, as affected by 1999 Wisconsin Act 9,
22is amended to read:
SB442,18,323 111.70 (1) (j) "Municipal employer" means any city, county, village, town,
24metropolitan sewerage district, school district, family care district or any other
25political subdivision of the state that engages the services of an employe and includes

1any person acting on behalf of a municipal employer within the scope of the person's
2authority, express or implied, but specifically does not include a local cultural arts
3district created under subch. V of ch. 229
.
SB442, s. 38 4Section 38. 219.09 (1) (e) of the statutes is created to read:
SB442,18,65 219.09 (1) (e) The Wisconsin Health and Educational Facilities Authority
6under ch. 231, with respect to a local cultural arts district under subch. V of ch. 229.
SB442, s. 39 7Section 39. 219.09 (1) (f) of the statutes is created to read:
SB442,18,98 219.09 (1) (f) Bonds issued by a local cultural arts district under subch. V of ch.
9229.
SB442, s. 40 10Section 40. Subchapter V of chapter 229 [precedes 229.840] of the statutes is
11created to read:
SB442,18,1212 chapter 229
SB442,18,1513 Subchapter V
14 Local cultural
15 arts districts
SB442,18,22 16229.840 Legislative declaration. (1) The legislature determines that this
17subchapter serves a statewide public purpose by assisting the development of
18cultural arts facilities in the state, which provide educational and recreational
19opportunities for Wisconsin residents, by enhancing the appreciation of the arts
20among the states' residents, by encouraging economic development and tourism, by
21reducing unemployment and by bringing needed capital into the state for the benefit
22and welfare of people throughout the state.
SB442,19,3 23(2) The legislature determines that cultural arts districts in populous cities
24serve a public purpose in those cities by providing educational and recreational
25opportunities for residents of those cities, by enhancing the appreciation of the arts

1among the residents of those cities, by encouraging economic development and
2tourism, by reducing unemployment and by bringing needed capital into those cities
3for the benefit and welfare of people in those cities.
SB442,19,4 4229.841 Definitions. In this subchapter:
SB442,19,6 5(1) "Bond" means any bond, note or other obligation issued under s. 66.066 by
6a district.
SB442,19,10 7(2) "Bond resolution" means a resolution of the district board authorizing the
8issuance of, or providing terms and conditions related to, bonds and includes, where
9appropriate, any trust agreement, trust indenture, indenture of mortgage or deed of
10trust providing terms and conditions for bonds.
SB442,19,16 11(3) "County executive" means the county executive or, if the county does not
12have a county executive, the chairperson of the county board of supervisors, of the
13county in which the sponsoring city is located. If a sponsoring city is located in more
14than one county, the city shall be considered to be located solely in the county in
15which the greatest percentage of its territory is located at the time a district is
16created.
SB442,19,19 17(4) "Cultural arts activity" means any performance, program, concert, exhibit,
18show, broadcast or other activity with any artistic or cultural significance, or any
19related or incidental activity.
SB442,19,25 20(5) "Cultural arts facilities" means district property, tangible or intangible,
21owned in whole or in part, operated or leased by a district that is principally for a
22cultural arts activity including auditoriums, music halls, exhibit halls, theaters,
23practice facilities, dressing rooms, parking lots, garages, restaurants, concession
24facilities, entertainment facilities, transportation facilities and other functionally
25related or auxiliary facilities or structures.
SB442,20,1
1(6) "District" means a district created under this subchapter.
SB442,20,2 2(7) "District board" means the governing board of a district.
SB442,20,3 3(8) "Mayor" means the mayor of a sponsoring city.
SB442,20,4 4(9) "Populous city" means any city with a population of more than 150,000.
SB442,20,6 5(10) "Sponsoring city" means a populous city that creates a district under this
6subchapter.
SB442,20,11 7229.842 Creation and organization. (1) A sponsoring city may create a
8special purpose district that is a local governmental unit, that is a body corporate and
9politic, that is separate and distinct from, and independent of, the state and the
10sponsoring city, that has the powers under s. 229.844 and the name of which includes
11"Cultural Arts District", if all of the following occur:
SB442,20,1312 (a) The mayor issues a written proclamation declaring the need for establishing
13a district.
SB442,20,1714 (b) The sponsoring city's common council adopts a resolution that approves the
15mayor's proclamation, and delivers a copy of the resolution to the governor. The
16resolution under this paragraph may contain a procedure that the mayor must follow
17in appointing persons to the board under sub. (2) (c).
SB442,20,2018 (c) If the sponsoring city is not a 1st class city, the resolution under par. (b)
19specifies the area of the district's jurisdiction, as described in s. 229.843 (1), within
20which the district board may exercise its power of eminent domain.
SB442,20,25 21(2) A district is governed by its district board. If the sponsoring city is a 1st class
22city, sub. (4) applies but pars. (a) to (d) and sub. (3) do not apply and the 1st class city's
23common council shall determine the membership, structure, qualifications and
24selection procedures for the district board. If the sponsoring city is not a 1st class city,
25the district board shall consist of the following members, subject to sub. (4):
SB442,21,3
1(a) The following persons, or their designees, shall be ex-officio members of the
2board, except that a designee serves at the pleasure of his or her appointing
3authority:
SB442,21,44 1. The governor.
SB442,21,55 2. The mayor.
SB442,21,66 3. The county executive.
SB442,21,137 (b) Three persons appointed by the governor, one of whom shall be selected from
8a list of 3 to 5 names that is submitted by the Board of Regents of the University of
9Wisconsin System. Of the remaining 2 appointees under this paragraph, at least one
10of the appointees shall have a demonstrated interest in cultural arts activities and
11one of the appointees may be an elective state official. A person appointed under this
12paragraph may take his or her seat immediately upon appointment and
13qualification.
SB442,21,2214 (c) Subject to sub. (1) (b), 6 persons appointed by the mayor, one of whom shall
15be selected from a list of 3 to 5 names that is submitted by the school board of the
16school district in which the greatest percentage of the sponsoring city's territory is
17located. Of the remaining 5 appointees under this paragraph, at least 2 of the
18appointees shall have a demonstrated interest in cultural arts activities and not
19more than 3 of the appointees may be elective city officials. A person appointed under
20this paragraph may take his or her seat immediately upon appointment and
21qualification, subject to any procedures specified by the common council under sub.
22(1) (b).
SB442,21,2523 (d) One person appointed by the county executive, who may not be a county
24official. A person appointed under this paragraph may take his or her seat
25immediately upon appointment and qualification.
SB442,22,2
1(3) (a) The persons appointed under sub. (2) (b) to (d) shall serve staggered
2terms of 4 years expiring on July 1, except that:
SB442,22,43 1. The initial term of the director appointed by the county executive shall expire
4on July 1 of the 3rd year beginning after the year of creation of a district.
SB442,22,75 2. The initial term of one director appointed by the governor and 2 directors
6appointed by the mayor shall expire on July 1 of the 4th year beginning after the year
7of creation of a district.
SB442,22,108 3. The initial term of one director appointed by the governor and 2 directors
9appointed by the mayor shall expire on July 1 of the 5th year beginning after the year
10of creation of a district.
SB442,22,1311 4. The initial term of one director appointed by the governor and 2 directors
12appointed by the mayor shall expire on July 1 of the 6th year beginning after the year
13of creation of a district.
SB442,22,1514 (b) The governor and mayor shall each designate with their initial
15appointments the terms to which directors have been appointed.
SB442,22,2516 (c) Persons appointed under sub. (2) (b) to (d) must have resided within 25 miles
17of the sponsoring city's city hall for at least one year before their appointment.
18Persons appointed under sub. (2) (b) to (d) may be removed from the district board
19before the expiration of their terms by the appointing authority but only for cause,
20as defined in s. 17.16 (2). Vacancies shall be filled by the appointing authority who
21appointed the person whose office is vacant. A person appointed to fill a vacancy
22under sub. (2) (b) to (d) shall serve for the remainder of the unexpired term to which
23he or she is appointed. The appointing authorities shall confer with one another
24regarding their appointments with a view toward achieving diversity on the district
25board.
SB442,23,9
1(4) If the sponsoring city's common council determines that another city or a
2village or town having territory located within 25 miles of the sponsoring city's city
3hall provides substantial support to the district, the council may increase the size of
4the district board to include as a member the mayor, village president or town board
5chair of that city, village or town, or the designee of such a mayor, village president
6or town board chair. If the sponsoring city's common council subsequently
7determines that the other city or the village or town no longer provides substantial
8support to the district, the council may decrease the size of the district board to
9exclude that member.
SB442,23,14 10(5) The district board shall elect from its membership a chairperson, a vice
11chairperson, a secretary and a treasurer. A majority of the current membership of
12the district board constitutes a quorum to do business. The district may take action
13based on the affirmative vote of a majority of those members of the district board who
14are present at a meeting of the district board.
SB442,23,16 15(6) The members of the district board shall be reimbursed by the district for
16their actual and necessary expenses incurred in the performance of their duties.
SB442,23,19 17(7) Upon the appointment and qualification of at least 7 of the members of a
18district board, the district board may exercise the powers and duties of a district
19board under this subchapter.
SB442,23,21 20(8) At its first meeting, the district board shall name the district, and the name
21shall include "Cultural Arts District".
SB442,23,23 22229.843 Jurisdiction. (1) Except as provided under s. 229.844 (4) (c), a
23district's jurisdiction shall be the boundaries of the sponsoring city.
SB442,23,25 24(2) A district's jurisdiction and powers remain in effect even if the sponsoring
25city, after the creation of the district, is no longer a populous city.
SB442,24,3
1229.844 Powers of a district. A district has all of the powers necessary or
2convenient to carry out the purposes and provisions of this subchapter. In addition
3to all other powers granted by this subchapter, a district may do all of the following:
SB442,24,4 4(1) Adopt bylaws to govern the district's activities, subject to this subchapter.
SB442,24,5 5(2) Sue and be sued in its own name, plead and be impleaded.
SB442,24,6 6(3) Maintain an office.
SB442,24,8 7(4) In connection with cultural arts facilities or in support of any cultural arts
8activity:
SB442,24,119 (a) Acquire, construct, equip, maintain, improve, operate and manage the
10cultural arts facilities as a revenue-generating enterprise or otherwise, or engage
11other persons to do these things.
SB442,24,1312 (b) Acquire; lease, as lessor or lessee; use; or transfer property within or outside
13of the district's jurisdiction.
SB442,24,1614 (c) 1. If the district's sponsoring city is not a 1st class city, acquire property by
15condemnation, subject to the limits specified in the resolution under s. 229.842 (1)
16(c) or the ordinance or resolution under s. 229.846 (6).
SB442,24,1917 2. If the district's sponsoring city is a 1st class city, request the 1st class city's
18redevelopment authority, created under s. 66.431 (3) (a) 3., to condemn property on
19behalf of the district.
SB442,24,2420 (d) Enter into contracts, subject to such standards as may be established by the
21district board. The district board may award any such contract for any combination
22or division of work it designates and may consider any factors in awarding a contract,
23including price, time for completion of work and qualifications and past performance
24of a contractor.
SB442,24,2525 (e) Grant concessions.
SB442,25,4
1(5) Employ personnel, and fix and regulate their compensation; and provide,
2either directly or subject to an agreement under s. 66.30 as a participant in a benefit
3plan of another governmental entity, other than a benefit plan provided under ch. 40,
4any employe benefits, including an employe pension plan.
SB442,25,8 5(6) Purchase insurance, establish and administer a plan of self-insurance or,
6subject to an agreement with another governmental entity under s. 66.30,
7participate in a governmental plan of insurance or self-insurance, other than a plan
8provided under ch. 40.
SB442,25,10 9(7) Mortgage, pledge or otherwise encumber the district's revenue, property or
10funds.
SB442,25,17 11(8) (a) Issue revenue bonds under s. 66.066, subject to ss. 229.849 to 229.853,
12and enter into agreements related to the issuance of bonds by the district or, for
13purposes related to the district, by the Wisconsin Health and Educational Facilities
14Authority or a community development authority created under s. 66.4325,
15including liquidity and credit facilities, remarketing agreements, insurance policies,
16guaranty agreements, letter of credit or reimbursement agreements, indexing
17agreements, interest exchange agreements and currency exchange agreements.
SB442,25,1918 (b) Contract short term obligations, and pledge the full faith and credit of the
19district for repayment of those obligations.
SB442,25,2320 (c) No director, employe of the district nor any other person executing any
21agreements with respect to any bonds or other obligations under this subsection is
22personally liable on the obligations subject to any personal liability or accountability
23by reason of the issuance of such obligations.
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