LRB-4295/1
RM/MS/GM/TF/JK/JTK:kmg:jf
2003 - 2004 LEGISLATURE
March 1, 2004 - Introduced by Senators Lassa, Harsdorf, Robson, Plale, Schultz,
Risser and Hansen, cosponsored by Representatives Schooff, Shilling,
McCormick, Suder, Richards, Berceau, Balow, Huber, J. Lehman, Plouff,
Gronemus, Molepske, Musser and Miller. Referred to Committee on
Economic Development, Job Creation and Housing.
SB514,2,2
1An Act to renumber 44.02 (24), 71.10 (4) (dr) and 101.121 (4) (a);
to renumber
2and amend 71.07 (9m) (a), 71.07 (9r) (a), 71.28 (6) (a) and 71.47 (6) (a);
to
3amend 13.48 (7), 13.48 (15), 59.69 (4m), 60.64, 62.23 (7) (em), 71.07 (5m) (a) 4.,
471.07 (9m) (c), 71.28 (6) (c), 71.47 (6) (c), 101.121 (4) (b), 101.19 (1) (intro.),
5254.61 (1) (f) 2. and 823.21; and
to create 13.48 (10) (c), 20.143 (1) (gb), 41.11
6(1) (bm), 44.02 (24) (b), 44.02 (24d), 71.07 (9m) (a) 2., 71.07 (9m) (g), 71.07 (9m)
7(h), 71.07 (9r) (a) 2., 71.28 (6) (a) 2., 71.28 (6) (g), 71.28 (6) (h), 71.47 (6) (a) 2.,
871.47 (6) (g), 71.47 (6) (h), 84.013 (3g), 86.36, 86.37, 101.121 (3) (c), 101.121 (4)
9(a) 2., 101.121 (5), 101.121 (6), 101.975 (4), 560.03 (21m) and 560.083 of the
10statutes;
relating to: the regulation, preservation, and restoration of historic
11buildings, the supplement to the federal historic rehabilitation tax credit and
12the state historic rehabilitation tax credit, requiring the certification of
13downtowns, promoting certain downtown areas in this state, highway projects
14involving business and downtown areas, the construction of major highway
1projects involving a bypass, granting rule-making authority, and making
2appropriations.
Analysis by the Legislative Reference Bureau
This bill makes numerous changes with regard to downtown development and
historic buildings and also makes a change to current law regarding the construction
of major highway projects involving a bypass. Significant provisions include the
following:
Historic buildings
State Historic Building Code
Current law authorizes the Department of Commerce (department) to regulate
the preservation and restoration of qualified historic buildings. 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 that is located in a district that is
listed on the national or state register of historic places and is of historical
significance to the district. Current law permits the department, in consultation
with the Historic Building Code Council, to promulgate a historic building code that
provides specific standards for the preservation or restoration of qualified historic
buildings, while still providing for the health, safety, and welfare of occupants of and
visitors to historic buildings. In addition, to permit the preservation or restoration
of qualified historic buildings, the department may grant a variance from any rule
promulgated under the chapters of the statutes relating to the regulation of industry,
buildings, and safety or the regulation of plumbing, fire protection systems, and
swimming pools.
With certain exceptions, the owner of a qualified historic building may elect to
be subject to the State Historic Building Code. With limited exceptions, an owner
who makes this election is exempt from any provision of any other building code,
including a local building code, that concerns a matter that is dealt with in the State
Historic Building Code. Although current law does not contain an administrative
procedure designed specifically to determine whether an owner is entitled to this
exemption, current law does contain a procedure that an owner may follow to resolve
any conflicts between a local order and any order of the department that relates to
the safety of places of employment or certain buildings that are open to the public
(public buildings).
This bill specifies that the State Historic Building Code must be liberally
interpreted to facilitate the preservation and restoration of qualified historic
buildings. The bill also creates a specific administrative procedure for determining
the extent to which a provision in a local building code applies to a qualified historic
building. The bill permits the owner of a qualified historic building who has elected
to be governed by the State Historic Building Code to request that the department
review any decision of a local governmental unit that requires the owner to comply
with a provision in a local ordinance. The department must review the decision to
determine whether the provision in the ordinance concerns a matter dealt with in the
State Historic Building Code, in which case the owner would be exempt from the
provision. The bill specifies that, in performing this review, the department must
follow the existing procedure for resolving conflicts between local orders and orders
of the department that relate to the safety of places of employment or public
buildings.
This bill also expands the role of the State Historical Society relating to the
State Historic Building Code. Under the bill, the owner of a qualified historic
building may request that the State Historical Society review certain decisions of the
department, or of a local governmental unit acting as an agent of the department,
relating to the State Historic Building Code, variances under the State Historic
Building Code, or the inspection of qualified historic buildings for compliance with
the State Historic Building Code. The State Historical Society must review the
particular decision and issue an advisory opinion as to whether the decision or an
alternate decision is consistent with the State Historic Building Code. The bill
permits the State Historical Society to negotiate with the department or the
particular local governmental unit to achieve an alternate decision that would allow
the greatest possible degree of restoration and preservation, while still providing for
the health, safety, and welfare of occupants of and visitors to the qualified historic
building. The bill also permits the department or the particular local governmental
unit to modify a reviewed decision, based upon these negotiations. In addition, the
bill requires the department, in cooperation with the State Historical Society, to
develop an informational pamphlet to increase public awareness and use of the State
Historic Building Code.
Historic preservation in local governmental units
This bill directs local governmental units to interpret liberally their regulations
that apply to historic structures in order to facilitate the preservation and
restoration of historic buildings and structures.
Historic rehabilitation tax credit
Under current law, a person who is eligible to claim a federal income tax credit
equal to either 10 percent of qualified expenses related to rehabilitating a qualified
building in this state or 20 percent of qualified expenses related to rehabilitating
historic property in this state may also claim a supplemental state income or
franchise tax credit that is equal to 5 percent of such qualified expenses.
Under the bill, for taxable years beginning in 2004, a person who is eligible to
claim the federal rehabilitation tax credit may claim the supplemental state
rehabilitation credit in an amount equal to 20 percent of qualified expenses, if the
rehabilitated property is located in a certified downtown or is included in a business
area revitalization under the State Main Street Program and the state Historical
Society certifies the rehabilitation. In addition, under the bill, a person who is not
eligible to claim the federal rehabilitation tax credit because the person's qualified
expenses do not satisfy the adjusted-basis requirement under federal law may claim
the supplemental state rehabilitation credit in an amount equal to 20 percent of
qualified expenses, if the qualified expenses are at least $10,000, the rehabilitated
property is located in a certified downtown or is included in a business area
revitalization under the State Main Street Program, and the state Historical Society
certifies the rehabilitation. The state Historical Society may charge and collect a fee
for the certifications described in this paragraph in an amount equal to two percent
of the qualified expenses, but not less than $300 nor more than $20,000. Fifty
percent of the amount of such fees collected by the Historical Society will be used to
provide additional staffing for the administration of the State Main Street Program.
Under current law, a person may claim an income tax credit equal to 25 percent
of the qualified expenses to preserve or rehabilitate historic property that is used as
an owner-occupied personal residence. The state Historical Society certifies such
expenses.
Under this bill, for taxable years beginning in 2004, a person who is eligible to
claim the state income tax credit for preserving or rehabilitating historic property
may claim the state income tax credit in an amount equal to 30 percent of qualified
expenses, if the preserved or rehabilitated property is located in a certified downtown
or is included in a business area revitalization under the State Main Street Program
and the state Historical Society approves the preservation or rehabilitation. The
state Historical Society may charge and collect a fee of $150 for certifying such
expenses.
Under current law, if a person who claims the income tax credit for qualified
expenses to preserve or rehabilitate an owner-occupied personal residence sells the
property within five years from the date on which the preservation or rehabilitation
is completed, or if the state Historical Society determines that the preservation or
rehabilitation does not comply with the standards established by the society, the
person who claimed the tax credit must pay to the state all, or a portion, of the
amount of the credit that the person received, depending on the date on which the
person sold the property or on the date on which the preservation or rehabilitation
does not comply with state Historical Society standards.
Under this bill, if a person who claims the supplemental state income or
franchise tax credit for qualified expenses related to preserving or rehabilitating
historic property in this state sells the property within five years from the date on
which the preservation or rehabilitation is completed, or if the state Historical
Society determines that the preservation or rehabilitation does not comply with the
standards established by the society, the person who claimed the tax credit must pay
to the state all, or a portion, of the amount of the credit that the person received,
depending on the date on which the person sold the property or the date on which the
preservation or rehabilitation does not comply with state Historical Society
standards.
Downtown development
Certification and promotion of downtowns
This bill requires the department to develop and publish guidelines to aid
communities in reconstructing central business districts that are destroyed or
severely damaged in major disasters. The bill also requires the department to
promulgate rules pursuant to which the department will certify downtowns. In
addition, under the bill, the Department of Tourism must promote travel to these
certified downtowns and to business areas that are or have been the subject of
revitalization efforts under the State Main Street Program (a program that promotes
revitalization efforts in certain business areas).
Currently, the Building Commission submits biennial recommendations to the
legislature for revisions to the long-range state building program. No state agency
or authority may engage any person to undertake construction of a building for the
agency costing more than $100,000 without prior approval of the commission. In
addition, the commission has authority to lease land and buildings to be used for
state purposes unless that authority is granted by law to another state agency.
This bill provides that the commission shall not authorize construction of any
state office building to be located outside of a downtown area certified by the
Department of Commerce as required under the bill, unless the cost of locating the
building inside such a downtown area is more than 10 percent greater than the
average cost of locating the building in that portion of the geographic area that is
served by the functions to be performed in the building on the date of initial
occupancy outside of such a downtown area, as determined by the Department of
Administration (DOA). The bill also provides that the commission, in preparing its
recommendations for the long-range building program, shall not recommend
construction of a state office building to be located outside of such a downtown area,
unless the commission would be authorized to permit construction of that building
in the recommended location. In addition, the bill prohibits the commission from
approving the lease of any building for state office facilities to be located outside of
such a downtown area unless the cost of locating the facilities inside such a
downtown area is more than 10 percent greater than the average cost of locating the
facilities in that portion of the geographic area that is served by the functions to be
performed in the facilities on the date of initial occupancy under the lease outside of
such a downtown area, as determined by DOA.
This bill imposes additional requirements relating to highway projects that are
funded by the Department of Transportation (DOT) and that involve a highway in
a business area included in the State Main Street Program or in a downtown certified
by the Department of Commerce. First, DOT must consult, during preliminary
stages of a proposed highway project, on issues concerning the proposed project and
its effect on the business or certified downtown area with the Department of
Commerce and, unless none exists, with a local board or downtown planning
organization of that municipality. Second, DOT must give priority to retaining any
on-street parking with respect to a highway-widening project in a business or
certified downtown area.
This bill specifies that DOT, in providing any matching funds for local highway
projects, is required to fund the construction of any highway lane without regard to
whether it is a travel lane or a parking lane. This requirement applies only to local
highway projects that are in business areas under the State Main Street Program
or in downtowns certified by the Department of Commerce.
Major highway projects
Under current law, DOT administers a major highway projects program. A
major highway project is a project having a total cost of more than $5,000,000 and
involving construction of a new highway 2.5 miles or more in length; reconstruction
or reconditioning of an existing highway that relocates at least 2.5 miles of the
highway or adds one or more lanes at least five miles in length to the highway; or
improvement of an existing multilane divided highway to freeway standards. Any
major highway project, unlike other highway construction projects undertaken by
DOT, requires the approval of the Transportation Projects Commission and the
legislature before the project may be constructed. The current list of major highway
projects that are approved for construction includes six projects that involve
bypasses.
This bill provides that, prior to constructing a major highway project involving
a bypass, DOT must notify the governing body of the city, village, or town primarily
to be affected by the bypass of DOT's proposed construction of the bypass. If the
governing body of the city, village, or town adopts a resolution, within 90 days of
being notified by DOT, stating that an active bypass is in the best public interest of
the city, village, or town and sends a copy of the resolution to DOT within seven days
of its adoption, DOT is required to design and construct an active bypass. The bill
defines "active bypass" as a bypass of an existing highway that is designed and
constructed in such a way that access to the bypass requires motorists to exit the
existing highway in order to travel on the bypass.
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:
SB514, s. 1
1Section
1. 13.48 (7) of the statutes is amended to read:
SB514,7,52
13.48
(7) Biennial recommendations. The building commission shall prepare
3and formally adopt recommendations for the long-range state building program on
4a biennial basis. The building commission shall include in its report any projects
5proposed by the state fair park board involving a cost of not more than $250,000,
6together with the method of financing those projects proposed by the board, without
7recommendation. Unless a later date is requested by the building commission and
8approved by the joint committee on finance, the building commission shall, no later
9than the first Tuesday in April of each odd-numbered year, transmit the report
10prepared by the department of administration under s. 16.40 (20) and the
11commission's recommendations for the succeeding fiscal biennium that require
1legislative approval to the joint committee on finance in the form of proposed
2legislation prepared in proper form.
If the building commission includes any
3recommendation for construction of a state office building, the commission shall
4ensure that the recommended location of the building is consistent with construction
5requirements under sub. (10) (c).
SB514, s. 2
6Section
2. 13.48 (10) (c) of the statutes is created to read:
SB514,7,147
13.48
(10) (c) Unless otherwise required by law, the building commission shall
8not authorize the construction of any state office building, whether for utilization by
9a single agency or otherwise, to be located outside of a downtown area, as certified
10under s. 560.03 (21m), unless the cost of locating the building inside a downtown area
11is more than 10 percent greater than the average cost of locating the building in that
12portion of the geographic area that is served by the functions to be performed in the
13building on the date of initial occupancy outside of any downtown area, as
14determined by the department of administration.
SB514, s. 3
15Section
3. 13.48 (15) of the statutes is amended to read:
SB514,8,216
13.48
(15) Acquisition of leasehold interests. Subject to the requirements
17of s. 20.924 (1) (i), the building commission shall have the authority to acquire
18leasehold interests in land and buildings where such authority is not otherwise
19provided to an agency by law.
The building commission shall not approve any lease
20for state office facilities, whether for utilization by a single agency or otherwise, to
21be located outside of a downtown area, as certified under s. 560.03 (21m), unless the
22cost of locating the facilities inside a downtown area is more than 10 percent greater
23than the average cost of locating the facilities in that portion of the geographic area
24that is served by the functions to be performed in the facilities on the date of initial
1occupancy under the lease outside of any downtown area, as determined by the
2department of administration.
SB514, s. 4
3Section
4. 20.143 (1) (gb) of the statutes is created to read:
SB514,8,64
20.143
(1) (gb)
Certified downtowns and business district reconstruction. All
5moneys received from the historical society under s. 44.02 (24d) (b) for the purpose
6of providing staff for the administration of ss. 560.03 (21m) and 560.083.
SB514, s. 5
7Section
5. 41.11 (1) (bm) of the statutes is created to read:
SB514,8,108
41.11
(1) (bm) Promote travel to business areas that are or have been the
9subject of revitalization efforts under the State Main Street Program under s.
10560.081 or that are certified downtowns under s. 560.03 (21m).
SB514, s. 6
11Section
6. 44.02 (24) of the statutes is renumbered 44.02 (24) (a).
SB514, s. 7
12Section
7. 44.02 (24) (b) of the statutes is created to read:
SB514,8,1513
44.02
(24) (b) Charge a fee of $150 for a certification under par. (a). The
14historical society shall collect the fee under this paragraph when an applicant
15applies for certification under par. (a).
SB514, s. 8
16Section
8. 44.02 (24d) of the statutes is created to read:
SB514,8,2117
44.02
(24d) (a) Promulgate by rule procedures, standards, and forms necessary
18to certify, and shall certify, expenditures for preservation or rehabilitation of historic
19property for the purposes of ss. 71.07 (9m) (a), 71.28 (6) (a), and 71.47 (6) (a). Such
20standards shall be substantially similar to the standards used by the secretary of the
21interior to certify rehabilitations under
26 USC 47 (c) (2).
SB514,9,322
(b) Charge a fee for a certification under par. (a) equal to 2 percent of the
23qualified rehabilitation expenditures for the historic property that is the subject of
24the certification, except that no fee under this paragraph may be less than $300 nor
25more than $20,000. The historical society shall collect the fee under this paragraph
1when an applicant applies for certification under par. (a). Fifty percent of the amount
2collected under this paragraph shall be deposited in the appropriation account under
3s. 20.143 (1) (gb).
SB514, s. 9
4Section
9. 59.69 (4m) of the statutes is amended to read:
SB514,9,155
59.69
(4m) Historic preservation. A county, as an exercise of its zoning and
6police powers for the purpose of promoting the health, safety and general welfare of
7the community and of the state, may regulate by ordinance any place, structure or
8object with a special character, historic interest, aesthetic interest or other
9significant value, for the purpose of preserving the place, structure or object and its
10significant characteristics. The county may create a landmarks commission to
11designate historic landmarks and establish historic districts. The county may
12regulate all historic landmarks and all property within each historic district to
13preserve the historic landmarks and property within the district and the character
14of the district
, and shall interpret the county's regulations liberally to facilitate the
15preservation and restoration of historic buildings and structures.
SB514, s. 10
16Section
10. 60.64 of the statutes is amended to read:
SB514,9,25
1760.64 Historic preservation. The town board, in the exercise of its zoning
18and police powers for the purpose of promoting the health, safety and general welfare
19of the community and of the state, may regulate any place, structure or object with
20a special character, historic interest, aesthetic interest or other significant value for
21the purpose of preserving the place, structure or object and its significant
22characteristics. The town board may create a landmarks commission to designate
23historic landmarks and establish historic districts. The board may regulate all
24historic landmarks and all property within each historic district to preserve the
25historic landmarks and property within the district and the character of the district
,
1and shall interpret the board's regulations liberally to facilitate the preservation and
2restoration of historic buildings and structures.
SB514, s. 11
3Section
11. 62.23 (7) (em) of the statutes is amended to read:
SB514,10,194
62.23
(7) (em)
Historic preservation. A city, as an exercise of its zoning and
5police powers for the purpose of promoting the health, safety and general welfare of
6the community and of the state, may regulate by ordinance, or if a city contains any
7property that is listed on the national register of historic places in Wisconsin or the
8state register of historic places shall, not later than 1995, enact an ordinance to
9regulate, any place, structure or object with a special character, historic,
10archaeological or aesthetic interest, or other significant value, for the purpose of
11preserving the place, structure or object and its significant characteristics. A city
12may create a landmarks commission to designate historic or archaeological
13landmarks and establish historic districts. The city may regulate, or if the city
14contains any property that is listed on the national register of historic places in
15Wisconsin or the state register of historic places shall regulate, all historic or
16archaeological landmarks and all property within each historic district to preserve
17the historic or archaeological landmarks and property within the district and the
18character of the district
, and shall interpret the city's regulations liberally to
19facilitate the preservation and restoration of historic buildings and structures.
SB514, s. 12
20Section
12. 71.07 (5m) (a) 4. of the statutes is amended to read:
SB514,10,2221
71.07
(5m) (a) 4. "Net tax liability" means a claimant's income tax liability after
22he or she completes the computations listed in s. 71.10 (4) (a) to
(dr) (dm).
SB514, s. 13
23Section
13. 71.07 (9m) (a) of the statutes is renumbered 71.07 (9m) (a) 1. and
24amended to read:
SB514,11,8
171.07
(9m) (a) 1.
Any Except as provided in subd. 2., any person may
claim as
2a credit against
the taxes
otherwise due imposed under
this chapter
s. 71.02, up to
3the amount of those taxes, an amount equal to 5% of the costs of qualified
4rehabilitation expenditures, as defined in section
47 (c) (2) of the
internal revenue
5code Internal Revenue Code, for certified historic structures on property located in
6this state
, if the physical work of construction or destruction in preparation for
7construction begins after December 31, 1988, and the rehabilitated property is
8placed in service after June 30, 1989.