March 7, 2000 - Introduced by Senator Risser, cosponsored by Representatives
Underheim and Miller. Referred to Joint committee on Finance.
SB442,2,9
1An Act to renumber 66.04 (1) and 66.066 (5);
to amend 13.94 (4) (a) 1., 16.70
2(14), 19.42 (13) (a), 25.50 (1) (d), 32.02 (11), 32.05 (intro.), 32.05 (1) (a), 32.07 (2),
340.02 (28), 40.02 (36), 66.04 (2) (a) (intro.), 66.066 (1) (a), 66.067, 66.30 (1) (a),
471.26 (1) (bm), 71.26 (1m) (g), 71.36 (1m), 71.45 (1t) (g), 111.02 (7), 111.70 (1) (j),
5230.03 (3), 231.01 (4) (a), 231.01 (4) (b) 1., 231.01 (4) (b) 2., 231.01 (4) (c), 231.01
6(7) (a) 1., 231.01 (7) (a) 2., 231.01 (7) (a) 4., 231.01 (7) (c), 231.02 (6) (b), 231.03
7(5), 231.03 (7), 231.03 (8), 231.03 (11), 231.03 (13), 231.03 (14), 231.03 (15),
8231.03 (16), 231.03 (17), 231.03 (18), 231.03 (19), 231.04, 231.05 (1), 231.06,
9231.07 (1) (b), 231.07 (2) (a), 231.08 (5), 231.10 (1), 231.12, 231.13 (1) (intro.),
10231.13 (2), 231.16 (1), 231.20 and 231.23;
to repeal and recreate 40.02 (28);
11and
to create 24.61 (2) (a) 8., 24.61 (2) (a) 9., 25.17 (3) (b) 11., 25.17 (3) (b) 12.,
1266.04 (1a), 66.04 (2) (a) 3r., 66.04 (2) (a) 3t., 66.066 (5) (c), 70.11 (40), 71.05 (1)
13(c) 6., 71.05 (1) (c) 7., 71.26 (1m) (h), 71.45 (1t) (h), 77.54 (9a) (h), 219.09 (1) (e),
14219.09 (1) (f), subchapter V of chapter 229 [precedes 229.840], 231.01 (4g),
1231.01 (4h), 231.01 (5t), 231.03 (6) (g) and 231.03 (6) (h) of the statutes;
2relating to: authorizing the creation of a local cultural arts district; granting
3a property tax exemption for the district's property; granting a sales tax and use
4tax exemption for tangible personal property and services purchased by the
5district; giving a local cultural arts district the authority to issue bonds and
6granting income tax exemptions for interest income on bonds issued by the
7district; authorizing certain local cultural arts districts to acquire property by
8condemnation; and authorizing the Wisconsin Health and Educational
9Facilities Authority to issue bonds to finance certain cultural arts facilities.
Analysis by the Legislative Reference Bureau
Creation and dissolution of a district
This bill authorizes the creation of a local cultural arts district by a sponsoring
city, which is defined as a city with a population of more than 150,000 that creates
such a district. To create a district, the mayor of the sponsoring city must issue a
written proclamation declaring the need for establishing a district, and the
sponsoring city's common council must adopt a resolution that approves of the
proclamation and deliver a copy of the resolution to the governor. The resolution
must also prescribe the scope of the district's eminent domain power, if any. A district
is a local unit of government that is a body corporate and politic and that is separate
and distinct from, and independent of, the state and the sponsoring city. Under the
bill, a district's jurisdiction and powers remain fixed even if the population of the
sponsoring city subsequently declines below the minimum described.
In connection with cultural arts facilities, the powers of a district include
eminent domain authority; the construction, maintenance, management and
acquisition of the facilities; the issuance of revenue bonds to finance the construction
of the facilities; the authority to enter upon real property within its eminent domain
jurisdiction to make surveys and examinations before locating or constructing
cultural arts facilities, subject to certain limitations; the authority to enter into
partnerships, joint ventures, common ownership or other arrangements with other
persons to further the district's purposes; and the authority to acquire, lease or
transfer property within or outside of the district's jurisdiction. A district may also
set standards governing the use of, and the conduct within, the facilities, and may
set and collect fees for the use of the facilities.
With regard to contracts for construction work and professional service
contracts that are awarded by the district, it shall be a goal of the district that at least
5% of the aggregate dollar value of the contracts be awarded to minority-owned
businesses and at least 5% of the aggregate dollar value of contracts be awarded to
women-owned businesses.
The district is governed by a district board. If the sponsoring city is not a first
class city (presently only Milwaukee is a first class city), the board consists of, in an
ex-officio capacity, the governor, the mayor of the sponsoring city and the county
executive of the county in which the greatest percentage of the territory of the
sponsoring city is located or if there is no county executive, the board chairperson,
or the designees of these persons. If the sponsoring city is a first class city, the
common council shall determine the structure, qualifications and selection
procedures for the members of the board.
If the sponsoring city is not a first class city, the board consists of, other than
the ex-officio members listed above, three persons appointed by the governor, one of
whom shall be selected from a list of three to five names that is submitted by the
Board of Regents of the University of Wisconsin System; six persons appointed by the
mayor of the sponsoring city, all of whom may need to be appointed according to
procedures that may be required by the common council and one of whom must be
selected from a list of three to five names that is submitted by the principal school
board of the sponsoring city; and one person appointed by the county executive or,
if there is no county executive, the board chairperson of the county in which the
greatest percentage of the territory of the sponsoring city is located. Of the persons
appointed by the mayor, no more than three may be elective city officials.
In addition, the sponsoring city's common council may increase the size of the
board to include the mayor, village president or town board chair, or such person's
designee, of a city, village or town having territory that is located within 25 miles of
the sponsoring city's city hall and that provides substantial support to the district.
The common council may reduce the size of the board to exclude that member if the
common council subsequently determines that such a city, village or town no longer
provides substantial support to the district.
A district may be dissolved, subject to retirement of the district's bonds and
fulfillment of its other contractual obligations in one of the following ways: 1) By a
law enacted by this state; 2) If the sponsoring city is not a first class city, by the
unanimous action of the district board; 3) If the sponsoring city is a first class city,
by any means described in the initial resolution under which the first class city
created the district.
If a district is dissolved, its property may be transferred to the sponsoring city,
any state, any possession of the United States, any political subdivision of a state or
of the United States, the District of Columbia or to one of a number of tax-exempt
religious, educational, scientific or charitable entities that are described in the
Internal Revenue Code, except that in the case of a district created by a first class
city, the common council's resolution that created the district must specify the
specific entity to which the district's property will be transferred upon dissolution.
Under the bill, a sponsoring city may make grants, gifts or loans of any kind of
property, or provide any other form of assistance, to a district; expend public funds
to subsidize a district; borrow money to fund grants, loans or subsidies to a district;
fix and collect a sum to be paid in lieu of taxes by the district; or audit the financial
records of a district.
Bonding
The 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 cultural arts district. Under the bill, the
bonds issued by the district may be secured by district property and income placed
in a special fund. The bill specifically provides that neither the state nor the
sponsoring municipality is liable on bonds issued by the district and that the
issuance of bonds by the district does not obligate the state or the sponsoring city to
levy taxes for the retirement of the bonds. Under the bill, the state pledges to the
holders of bonds issued by the district that the state will not alter the rights vested
in the district by law until such bonds are fully retired, unless adequate provision is
made by law for protection of the bondholders' rights. Finally, with respect to bonds
issued by the district, 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 with respect to the issuance of bonds.
Under current law, the Wisconsin Health and Educational Facilities Authority
(WHEFA) may issue bonds to finance certain projects of health institutions,
educational institutions and, until May 1, 2000, child care centers, and to refinance
outstanding debt of health institutions, educational institutions and, until May 1,
2000, child care centers. Projects that may be financed include, among others, the
acquisition of a hospital, the construction or operation of an ambulatory surgery
center or home health agency, the construction, remodeling, furnishing or equipping
of a health or educational facility or related structure and, until May 1, 2000, the
construction, remodeling, furnishing or equipping of a building that is used
exclusively to provide child care services and that is not operated for profit. The bill
authorizes WHEFA to also issue bonds to finance a project undertaken by a local
cultural arts district for a cultural arts facility, or to refinance outstanding debt of
a local cultural arts district.
Condemnation
A district's eminent domain power may be used only within the area of the
sponsoring city specified in the resolution creating the district. The sponsoring city
may expand or contract that area by ordinance or resolution but may not contract the
area beyond that specified in the initial resolution. If the sponsoring city is a first
class city, the district does not have the power of eminent domain but may request
the city's redevelopment authority to exercise its power of eminent domain on behalf
of the district. A redevelopment authority's power to condemn property on behalf of
a district created by a first class city is not subject to the above limitations.
collective bargaining
The bill specifically exempts the local cultural arts district from coverage under
the Municipal Employment Relations Act (MERA). Under MERA, which covers
employment relations in municipalities, employes in collective bargaining units for
which a representative is recognized or certified may bargain with an employer over
wages, hours and conditions of employment to the point of impasse, at which point
the parties may be required to submit to interest arbitration. Under MERA,
however, employes do not have the right to strike. Instead, the bill provides that a
district is covered under the Employment Peace Act. The Employment Peace Act
generally covers all employers not covered under the National Labor Relations Act
other than the state and its political subdivisions. Under the Employment Peace Act,
employes in collective bargaining units for which a representative is recognized or
certified may bargain with an employer over wages, hours and conditions of
employment. Under the Employment Peace Act, there is no interest arbitration;
however, employes are granted the right to strike.
taxation
The bill creates a property tax exemption for the property of a local cultural arts
district. The property tax exemption, however, does not apply to the property of a
local cultural arts district that is not a part of the physical structure of a cultural arts
facility, if that property is used for a retail business or a restaurant, unless the retail
business or restaurant is operated by the local cultural arts district or by a nonprofit
corporation, organization or association. The exemption also does not apply to
parking lots or parking structures that are not used to support the operation of a local
cultural arts district.
Under the bill, the income of a local cultural arts district is exempt from the
income tax and the franchise tax, and the income and interest from the district's
obligations are exempt from the income tax. In addition, the income and interest
from bonds that are issued by WHEFA with respect to a local cultural arts district
are exempt from the income tax.
Under the bill, goods and services purchased by a local cultural arts district are
exempt from the sales tax and the use tax.
Finance
The 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. 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 cultural arts district, including, among others:
1. The district is subject to laws requiring, with certain exceptions, public
notice of and access to meetings of the district board and public access to the district's
records.
2. The district is subject to worker's compensation, unemployment insurance,
state minimum wage and hour and family and medical leave laws.
3. The district is subject to the law requiring the payment of prevailing wages
on local government public works projects.
4. The district is governed by laws regulating municipal administrative
procedures and rights.
5. The district is subject to laws restricting employers from testing employes
and prospective employes for human immunodeficiency virus (HIV) or an antibody
to HIV.
6. The district is subject to the tort and antitrust liability limitation that
currently applies to actions brought against local governmental units of $50,000 per
occurrence, and persons attempting to sue the district are subject to a requirement
to file notice of their claims within 120 days of their occurrence.
7. The district is subject to laws regulating buildings and safety.
8. The property of the district is subject to special assessment levies.
Under the bill, the district may participate in the local government property
insurance fund.
The bill provides that the district is not subject to:
1. Laws regulating generally the ways in which funds of local governments may
be invested.
2. The state public employe retirement plan and state-administered plans for
deferred compensation, health care benefits and disability and survivor benefits.
The bill provides also 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 sponsoring city.
employment
Under the bill, any ordinance of a sponsoring city that regulates employment
relations or practices of all private employers generally applies to employes of the
district, unless the sponsoring city's common council excludes the application of such
an ordinance to the district's employes.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB442,7,13
113.94
(4) (a) 1. Every state department, board, examining board, affiliated
2credentialing board, commission, independent agency, council or office in the
3executive branch of state government; all bodies created by the legislature in the
4legislative or judicial branch of state government; any public body corporate and
5politic created by the legislature including specifically a professional baseball park
6district
, a local cultural arts district and a family care district under s. 46.2895; every
7Wisconsin works agency under subch. III of ch. 49; every provider of medical
8assistance under subch. IV of ch. 49; technical college district boards; development
9zones designated under s. 560.71; every county department under s. 51.42 or 51.437;
10every nonprofit corporation or cooperative to which moneys are specifically
11appropriated by state law; and every corporation, institution, association or other
12organization which receives more than 50% of its annual budget from appropriations
13made by state law, including subgrantee or subcontractor recipients of such funds.
SB442, s. 2
14Section
2. 16.70 (14) of the statutes is amended to read:
SB442,7,1615
16.70
(14) "State" does not include a district created under subch. II
or, III
or
16V of ch. 229.
SB442, s. 3
17Section
3. 19.42 (13) (a) of the statutes is amended to read:
SB442,7,2318
19.42
(13) (a) All positions to which individuals are regularly appointed by the
19governor, except the position of trustee of any private higher educational institution
20receiving state appropriations and the position of member of the district board of a
21local professional baseball park district created under subch. III of ch. 229
and the
22position of member of the district board of a local cultural arts district created under
23subch. V of ch. 229.
SB442, s. 4
24Section
4. 24.61 (2) (a) 8. of the statutes is created to read:
SB442,8,2
124.61
(2) (a) 8. Bonds issued under ch. 231 with respect to a local cultural arts
2district created under subch. V of ch. 229.
SB442, s. 5
3Section
5. 24.61 (2) (a) 9. of the statutes is created to read:
SB442,8,54
24.61
(2) (a) 9. Bonds issued by a local cultural arts district under subch. V of
5ch. 229.
SB442, s. 6
6Section
6. 25.17 (3) (b) 11. of the statutes is created to read:
SB442,8,87
25.17
(3) (b) 11. Bonds issued under ch. 231 with respect to a local cultural arts
8district created under subch. V of ch. 229.
SB442, s. 7
9Section
7. 25.17 (3) (b) 12. of the statutes is created to read:
SB442,8,1110
25.17
(3) (b) 12. Bonds issued by a local cultural arts district under subch. V
11of ch. 229.
SB442,8,2214
25.50
(1) (d) "Local government" means any county, town, village, city, power
15district, sewerage district, drainage district, town sanitary district, public inland
16lake protection and rehabilitation district, local professional baseball park district
17created under subch. III of ch. 229, family care district under s. 46.2895,
local
18cultural arts district created under subch. V of ch. 229, public library system, school
19district or technical college district in this state, any commission, committee, board
20or officer of any governmental subdivision of this state, any court of this state, other
21than the court of appeals or the supreme court, or any authority created under s.
22231.02, 233.02 or 234.02.
SB442, s. 9
23Section
9. 32.02 (11) of the statutes is amended to read:
SB442,9,324
32.02
(11) Any housing authority created under ss. 66.40 to 66.404
,; 25redevelopment authority created under s. 66.431
,; community development
1authority created under s. 66.4325
; local cultural arts district created under subch.
2V of ch. 229, subject to s. 229.844 (4) (c); or local exposition district created under
3subch. II of ch. 229.
SB442, s. 10
4Section
10. 32.05 (intro.) of the statutes is amended to read:
SB442,9,24
532.05 Condemnation for sewers and transportation facilities. (intro.)
6In this section, "mass transit facility" includes, without limitation because of
7enumeration, exclusive or preferential bus lanes if those lanes are limited to
8abandoned railroad rights-of-way or existing expressways constructed before
9May 17, 1978, highway control devices, bus passenger loading areas and terminal
10facilities, including shelters, and fringe and corridor parking facilities to serve bus
11and other public mass transportation passengers, together with the acquisition,
12construction, reconstruction and maintenance of lands and facilities for the
13development, improvement and use of public mass transportation systems for the
14transportation of passengers. This section does not apply to town highways created
15or altered under ch. 80 except as to jury trials on appeals under ss. 80.24 and 80.25,
16nor to proceedings in 1st class cities under subch. II. In any city, condemnation for
17housing under ss. 66.40 to 66.404,
or for urban renewal under s. 66.431,
or for
18cultural arts facilities under subch. V of ch. 229, may proceed under this section or
19under s. 32.06 at the option of the condemning authority. Condemnation by a local
20exposition district under subch. II of ch. 229 for any exposition center or exposition
21center facility may proceed under this section or under s. 32.06 at the option of the
22local exposition district. All other condemnation of property for public alleys, streets,
23highways, airports, mass transit facilities, or other transportation facilities, gas or
24leachate extraction systems to remedy environmental pollution from a solid waste
1disposal facility, storm sewers and sanitary sewers, watercourses or water
2transmission and distribution facilities shall proceed as follows:
SB442, s. 11
3Section
11. 32.05 (1) (a) of the statutes is amended to read:
SB442,10,234
32.05
(1) (a) Except as provided under par. (b), the county board of supervisors
5or the county highway committee when so authorized by the county board of
6supervisors, city council, village board, town board, sewerage commission governing
7metropolitan sewerage district created by ss. 66.22 or 66.88 to 66.918, secretary of
8transportation, a commission created by contract under s. 66.30, a joint local water
9authority created by contract under s.
66.0375 66.0735, housing authority under ss.
1066.40 to 66.404, local exposition district created under subch. II of ch. 229,
local
11cultural arts district created under subch. V of ch. 229, redevelopment authority
12under s. 66.431 or community development authority under s. 66.4325 shall make
13an order providing for the laying out, relocation and improvement of the public
14highway, street, alley, storm and sanitary sewers, watercourses, water transmission
15and distribution facilities, mass transit facilities, airport, or other transportation
16facilities, gas or leachate extraction systems to remedy environmental pollution from
17a solid waste disposal facility, housing project, redevelopment project,
cultural arts
18facilities, exposition center or exposition center facilities which shall be known as the
19relocation order. This order shall include a map or plat showing the old and new
20locations and the lands and interests required. A copy of the order shall, within 20
21days after its issue, be filed with the county clerk of the county wherein the lands are
22located or, in lieu of filing a copy of the order, a plat may be filed or recorded in
23accordance with s. 84.095.
SB442, s. 12
24Section
12. 32.07 (2) of the statutes is amended to read:
SB442,11,10
132.07
(2) The petitioner shall determine necessity if application is by the state
2or any commission, department, board or other branch of state government or by a
3city, village, town, county, school district, board, commission, public officer,
4commission created by contract under s. 66.30, joint local water authority under s.
566.0735, redevelopment authority created under s. 66.431, local exposition district
6created under subch. II of ch. 229,
local cultural arts district created under subch.
7V of ch. 229, housing authority created under ss. 66.40 to 66.404 or for the
8right-of-way of a railroad up to 100 feet in width, for a telegraph, telephone or other
9electric line, for the right-of-way for a gas pipeline, main or service or for easements
10for the construction of any elevated structure or subway for railroad purposes.
SB442,11,2213
40.02
(28) "Employer" means the state, including each state agency, any
14county, city, village, town, school district, other governmental unit or
15instrumentality of 2 or more units of government now existing or hereafter created
16within the state
and, any federated public library system established under s. 43.19
17whose territory lies within a single county with a population of 500,000 or more, a
18local exposition district created under subch. II of ch. 229 and a family care district
19created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3) and
20subch. X.
"Employer" does not include a local cultural arts district created under
21subch. V of ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI
22purposes.
SB442, s. 14
23Section
14. 40.02 (28) of the statutes, as affected by
1999 Wisconsin Act 9,
24section
931c, and 1999 Wisconsin Act .... (this act), is repealed and recreated to read:
SB442,12,9
140.02
(28) "Employer" means the state, including each state agency, any
2county, city, village, town, school district, other governmental unit or
3instrumentality of 2 or more units of government now existing or hereafter created
4within the state, any federated public library system established under s. 43.19
5whose territory lies within a single county with a population of 500,000 or more, a
6local exposition district created under subch. II of ch. 229 and a family care district
7created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3).
8"Employer" does not include a local cultural arts district created under subch. V of
9ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI purposes.
SB442,12,2112
40.02
(36) "Governing body" means the legislature or the head of each state
13agency with respect to employes of that agency for the state, the common council in
14cities, the village board in villages, the town board in towns, the county board in
15counties, the school board in school districts, or the board, commission or other
16governing body having the final authority for any other unit of government, for any
17agency or instrumentality of 2 or more units of government, for any federated public
18library system established under s. 43.19 whose territory lies within a single county
19with a population of 500,000 or more, for a local exposition district created under
20subch. II of ch. 229 or for a family care district created under s. 46.2895
, but does not
21include a local cultural arts district created under subch. V of ch. 229.
SB442, s. 16
22Section
16. 66.04 (1) of the statutes is renumbered 66.04 (1e).