AB1089: Bill Text

Bonding authority

Under the bill, a district may issue bonds, under general law regulating local government issuance of revenue obligations, for any corporate purpose related to airport facilities, the operation of an airport, or the impact of an airport on surrounding areas and properties. The district may also issue bonds to fund, refund, advance refund, or purchase any outstanding bond of the district. The bonds are payable solely out of revenues of the district. Under the bill, neither the members of the district board nor any person executing the bonds are liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance of the bonds. Finally, under the bill, neither the state nor any political subdivision of the state is liable on the bonds, and the issuance of the bonds does not obligate the state or any political subdivision of the state to levy any form of taxation therefor or to make any appropriation for their payment.

Taxation and shared revenue

Under the bill, the property of a district is exempt from the property tax; the income of the district is exempt from income and franchise taxes; property conveyed from the district is exempt from the real estate transfer fee; tangible personal property and taxable services that are purchased by the district are exempt from sales and use taxes; and gasoline and diesel fuel sold to and used by the district are exempt from the motor vehicle fuel tax. In addition, the income and interest from the bonds issued by the district are exempt from the income and franchise tax.

Under current law, 15 percent of a county's shared revenue payment is paid in July and the remainder is paid in November. Under the bill, a county in which is located a district that is created by the bill will receive its entire shared revenue payment in November.

Loans to a district

The bill authorizes the Board of Commissioners of Public Lands to loan money in certain state trust funds to a county that contains a first class city, to be used to fund any shortfall in operating revenues during a fiscal year, for a period not to exceed 120 days. The bill also authorizes the Investment Board to make a similar loan from moneys in the state investment fund.

ethics

Members of a district board are subject to the statutory code of ethics for local public officials. In addition, board members are subject to other standards of conduct that apply to state public officials. However, like other local public officials, district board members are not subject to periodic reporting requirements.

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:

AB1089, s. 1 Section 1. 16.70 (14) of the statutes is amended to read:

AB1089,4,3 16.70 (14) "State" does not include a district created under subch. II, III, IV, or V, or VI of ch. 229.

AB1089, s. 2 Section 2. 19.42 (13) (a) of the statutes is amended to read:

AB1089,5,7 19.42 (13) (a) All positions to which individuals are regularly appointed by the governor, except the position of trustee of any private higher educational institution receiving state appropriations and, the position of member of the district board of a local professional baseball park district created under subch. III of ch. 229 and, the position of member of the district board of a local cultural arts district created under subch. V of ch. 229, and the position of member of the district board of a local airport district created under subch. VI of ch. 229.

AB1089, s. 3 Section 3. 19.59 (1) (g) 1. a. of the statutes is amended to read:

AB1089,5,12 19.59 (1) (g) 1. a. "District" means a local professional baseball park district created under subch. III of ch. 229 or, a local professional football stadium district created under subch. IV of ch. 229, or a local airport district created under subch. VI of ch. 229.

AB1089, s. 4 Section 4. 24.61 (2) (a) 10. of the statutes is created to read:

AB1089,5,15 24.61 (2) (a) 10. Bonds issued by a local airport district under subch. VI of ch. 229.

AB1089, s. 5 Section 5. 24.61 (3) (a) 12. of the statutes is created to read:

AB1089,5,19 24.61 (3) (a) 12. A county that contains a 1st class city, to be used to fund any shortfall in operating revenues during a fiscal year, for a period not to exceed 120 days.

AB1089, s. 6 Section 6. 25.14 (5) of the statutes is amended to read:

AB1089,5,22 25.14 (5) The assets of the state investment fund shall be invested as prescribed by s. 25.17 (3) (b), (ba), (bc), and (bd).

AB1089, s. 7 Section 7. 25.17 (3) (b) 13. of the statutes is created to read:

AB1089,5,25 25.17 (3) (b) 13. Bonds issued by a local airport district under subch. VI of ch. 229.

AB1089, s. 8 Section 8. 25.17 (3) (bc) of the statutes is created to read:

AB1089,6,5 25.17 (3) (bc) Have authority to make a loan from moneys in the state investment fund to a county that contains a 1st class city, to be used to fund any shortfall in operating revenues during a fiscal year, for a period not to exceed 120 days.

AB1089, s. 9 Section 9. 25.50 (1) (d) of the statutes is amended to read:

AB1089,6,17 25.50 (1) (d) "Local government" means any county, town, village, city, power district, sewerage district, drainage district, town sanitary district, public inland lake protection and rehabilitation district, local professional baseball park district created under subch. III of ch. 229, family care district under s. 46.2895, local professional football stadium district created under subch. IV of ch. 229, local cultural arts district created under subch. V of ch. 229, local airport district created under subch. VI of ch. 229, public library system, school district or technical college district in this state, any commission, committee, board or officer of any governmental subdivision of this state, any court of this state, other than the court of appeals or the supreme court, or any authority created under s. 231.02, 233.02 or 234.02.

AB1089, s. 10 Section 10. 32.02 (11) of the statutes is amended to read:

AB1089,6,23 32.02 (11) Any housing authority created under ss. 66.1201 to 66.1211; redevelopment authority created under s. 66.1333 community development authority created under s. 66.1335; local cultural arts district created under subch. V of ch. 229, subject to s. 229.844 (4) (c); local airport district created under subch. VI of ch. 229; or local exposition district created under subch. II of ch. 229.

AB1089, s. 11 Section 11. 59.69 (4g) of the statutes is amended to read:

AB1089,7,5 59.69 (4g) Airport areas. In a county which has created a county zoning agency under sub. (2) (a), the county's development plan shall include the location of any part of an airport, as defined in s. 62.23 (6) (am) 1. a. or s. 229.860 (1), that is located in the county and of any part of an airport affected area, as defined in s. 62.23 (6) (am) 1. b., that is located in the county.

AB1089, s. 12 Section 12. 60.61 (2) (e) of the statutes is amended to read:

AB1089,7,11 60.61 (2) (e) Adopt an official map showing areas, outside the limits of villages and cities, suited to carry out the purposes of this section. Any map adopted under this paragraph shall show the location of any part of an airport, as defined in s. 62.23 (6) (am) 1. a. or 229.860 (1), located in the town and of any part of an airport affected area, as defined in s. 62.23 (6) (am) 1. b., located in the town.

AB1089, s. 13 Section 13. 62.23 (6) (am) 1. a. of the statutes is amended to read:

AB1089,7,16 62.23 (6) (am) 1. a. "Airport" means an airport as defined under s. 114.002 (7) which is owned or operated by a county, city, village or town either singly or jointly with one or more counties, cities, villages or towns, or an airport as defined in s. 229.860 (1) which is owned or operated by a district, as defined in s. 229.860 (5).

AB1089, s. 14 Section 14. 66.0301 (1) (a) of the statutes is amended to read:

AB1089,8,4 66.0301 (1) (a) In this section "municipality" means the state or any department or agency thereof, or any city, village, town, county, school district, public library system, public inland lake protection and rehabilitation district, sanitary district, farm drainage district, metropolitan sewerage district, sewer utility district, solid waste management system created under s. 59.70 (2), local exposition district created under subch. II of ch. 229, local professional baseball park district created under subch. III of ch. 229, local professional football stadium district created under subch. IV of ch. 229, a local cultural arts district created under subch. V of ch. 229, local airport district created under subch. VI of ch. 229, family care district under s. 46.2895, water utility district, mosquito control district, municipal electric company, county or city transit commission, commission created by contract under this section, taxation district, regional planning commission, or city-county health department.

AB1089, s. 15 Section 15. 66.0603 (1m) (a) 3r. of the statutes is created to read:

AB1089,8,7 66.0603 (1m) (a) 3r. Bonds issued by a local airport district created under subch. VI of ch. 229.

AB1089, s. 16 Section 16. 66.0621 (1) (a) of the statutes is amended to read:

AB1089,8,20 66.0621 (1) (a) "Municipality" means a city, village, town, county, commission created by contract under s. 66.0301, public inland lake protection and rehabilitation district established under s. 33.23, 33.235 or 33.24, metropolitan sewerage district created under ss. 200.01 to 200.15 and 200.21 to 200.65, town sanitary district under subch. IX of ch. 60, a local professional baseball park district created under subch. III of ch. 229, a local professional football stadium district created under subch. IV of ch. 229, a local cultural arts district created under subch. V of ch. 229, a local airport district created under subch VI of ch. 229, or a municipal water district or power district under ch. 198 and any other public or quasi-public corporation, officer, board or other public body empowered to borrow money and issue obligations to repay the money and obligations out of revenues. "Municipality" does not include the state or a local exposition district created under subch. II of ch. 229.

AB1089, s. 17 Section 17. 66.0621 (1) (b) of the statutes is amended to read:

AB1089,9,6 66.0621 (1) (b) "Public utility" means any revenue producing facility or enterprise owned by a municipality and operated for a public purpose as defined in s. 67.04 (1) (b) including garbage incinerators, toll bridges, swimming pools, tennis courts, parks, playgrounds, golf links, bathing beaches, bathhouses, street lighting, city halls, village halls, town halls, courthouses, jails, schools, cooperative educational service agencies, hospitals, homes for the aged or indigent, child care centers, as defined in s. 231.01 (3c), regional projects, waste collection and disposal operations, sewerage systems, local professional baseball park facilities, airport facilities, as defined in s. 229.860 (2), and any other necessary public works projects undertaken by a municipality.

AB1089, s. 18 Section 18. 66.0621 (6) (d) of the statutes is created to read:

AB1089,9,9 66.0621 (6) (d) Revenue bonds issued by a local airport district created under subch. VI of ch. 229 are subject to the provisions in ss. 229.866 to 229.868.

AB1089, s. 19 Section 19. 66.1009 (intro.) of the statutes is amended to read:

AB1089,9,13 66.1009 Agreement to establish an airport affected area. (intro.) Any county, town, city or village may establish by written agreement with an airport, as defined in s. 62.23 (6) (am) 1. a. or 229.860 (1):

AB1089, s. 20 Section 20. 70.11 (44) of the statutes is created to read:

AB1089,9,15 70.11 (44) Property of a local airport district created under subch. VI of ch. 229.

AB1089, s. 21 Section 21. 71.05 (1) (c) 7. of the statutes is created to read:

AB1089,9,17 71.05 (1) (c) 7. A local airport district created under subch. VI of ch. 229.

AB1089, s. 22 Section 22. 71.26 (1) (bm) of the statutes is amended to read:

AB1089,9,23 71.26 (1) (bm) Certain local districts. Income of a local exposition district created under subch. II of ch. 229, a local professional baseball park district created under subch. III of ch. 229, a local professional football stadium district created under subch. IV of ch. 229, or a local cultural arts district created under subch. V of ch. 229, or a local airport district created under subch. VI of ch. 229.

AB1089, s. 23 Section 23. 71.26 (1m) (g) of the statutes is amended to read:

AB1089,10,3 71.26 (1m) (g) Those issued under s. 66.0621 by a local professional baseball park district, a local professional football stadium district, or a local cultural arts district, or a local airport district.

AB1089, s. 24 Section 24. 71.36 (1m) of the statutes is amended to read:

AB1089,11,2 71.36 (1m) A tax-option corporation may deduct from its net income all amounts included in the Wisconsin adjusted gross income of its shareholders, the capital gain deduction under s. 71.05 (6) (b) 9. and all amounts not taxable to nonresident shareholders under ss. 71.04 (1) and (4) to (9) and 71.362. For purposes of this subsection, interest on federal obligations, obligations issued under s. 66.0621 by a local professional baseball park district, a local professional football stadium district, or a local cultural arts district, or an airport district, obligations issued under ss. 66.1201, 66.1333, and 66.1335, obligations issued under s. 234.65 to fund an economic development loan to finance construction, renovation or development of property that would be exempt under s. 70.11 (36) and obligations issued under subch. II of ch. 229 is not included in shareholders' income. The proportionate share of the net loss of a tax-option corporation shall be attributed and made available to shareholders on a Wisconsin basis but subject to the limitation and carry-over rules as prescribed by section 1366 (d) of the Internal Revenue Code. Net operating losses of the corporation to the extent attributed or made available to a shareholder may not be used by the corporation for further tax benefit. For purposes of computing the Wisconsin adjusted gross income of shareholders, tax-option items shall be reported by the shareholders and those tax-option items, including capital gains and losses, shall retain the character they would have if attributed to the corporation, including their character as business income. In computing the tax liability of a shareholder, no credit against gross tax that would be available to the tax-option corporation if it were a nontax-option corporation may be claimed.

AB1089, s. 25 Section 25. 71.45 (1t) (g) of the statutes is amended to read:

AB1089,11,6 71.45 (1t) (g) Those issued under s. 66.0621 by a local professional baseball park district, a local professional football stadium district, or a local cultural arts district, or a local airport district.

AB1089, s. 26 Section 26. 77.25 (22) of the statutes is created to read:

AB1089,11,8 77.25 (22) From a local airport district created under subch. VI of ch. 229.

AB1089, s. 27 Section 27. 77.54 (9a) (i) of the statutes is created to read:

AB1089,11,10 77.54 (9a) (i) A local airport district created under subch. VI of ch. 229.

AB1089, s. 28 Section 28. 78.01 (2) (g) of the statutes is created to read:

AB1089,11,13 78.01 (2) (g) Gasoline sold to and used by a local airport district created under subch. VI of ch. 229.

AB1089, s. 29 Section 29. 78.01 (2m) (h) of the statutes is created to read:

AB1089,11,16 78.01 (2m) (h) It is sold to and used by a local airport district created under subch. VI of ch. 229.

AB1089, s. 30 Section 30. 79.005 (1j) of the statutes is created to read:

AB1089,11,18 79.005 (1j) "FAA approval date" has the meaning given in s. 229.860 (9).

AB1089, s. 31 Section 31. 79.005 (1k) of the statutes is created to read:

AB1089,11,21 79.005 (1k) "Local airport district" means a local airport district created under subch. VI of ch. 229, whose jurisdiction is described in s. 229.862.

AB1089, s. 32 Section 32. 79.02 (2) (b) of the statutes is amended to read:

AB1089,12,2 79.02 (2) (b) Subject to ss. 59.605 (4) and 70.995 (14) (b), and except as provided in sub. (4), payments in July shall equal 15% of the municipality's or county's estimated payments under ss. 79.03, 79.035, 79.04, 79.058, and 79.06 and 100% of the municipality's estimated payments under s. 79.05.

AB1089, s. 33 Section 33. 79.02 (3) (a) of the statutes is amended to read:

AB1089,12,8 79.02 (3) (a) Subject to s. 59.605 (4), and except as provided in sub. (4), payments to each municipality and county in November shall equal that municipality's or county's entitlement under ss. 79.03, 79.035, 79.04, 79.05, 79.058, and 79.06 for the current year, minus the amount distributed to the municipality or county in July.

AB1089, s. 34 Section 34. 79.02 (4) of the statutes is created to read:

AB1089,12,13 79.02 (4) Subject to s. 59.605 (4), the department of administration shall distribute in November of each year the total amount of the payments under this subchapter due to a county in which a local airport district is located, beginning with the first distribution following the local airport district's FAA approval date.

AB1089, s. 35 Section 35. 114.002 (13) of the statutes is created to read:

AB1089,12,15 114.002 (13) "District" has the meaning given in s. 229.860 (5).

AB1089, s. 36 Section 36. 114.105 of the statutes is amended to read:

AB1089,13,2 114.105 Local regulation. Any county, town, city or village city, village, town, county, or district may adopt enact any ordinance that is in strict conformity with the provisions of this chapter and impose the same penalty for violation of any of its provisions except that such the ordinance shall may not provide for the suspension or revocation of pilot or aircraft licenses or certificates and shall may not provide for imprisonment except for failure to pay any fine which may be imposed. No local authority shall may enact any ordinance governing aircraft or aeronautics contrary to or inconsistent with the provisions of this chapter or federal law. Every court in which a violation of such ordinance is prosecuted shall make a written report of any conviction (including bail or appearance money forfeiture) to the federal aviation administration.

AB1089, s. 37 Section 37. 114.11 (1) to (4) and (5) (intro.) of the statutes are amended to read:

AB1089,13,21 114.11 (1) The governing body of any county, city, village or town city, village, town, county, or district in this state is hereby authorized to acquire, establish, construct, own, control, lease, equip, improve, maintain and operate airports or landing fields or landing and take-off strips for the use of airplanes and other aircraft either within or without the limits of such counties, cities, villages and towns cities, villages, towns, counties, and districts, and may use for such purpose or purposes any property suitable therefor that is now or may at any time hereafter be owned or controlled by such county, city, village or town city, village, town, county, or district, and may regulate the same, provided, such regulation shall not be in conflict with such rules and regulations as may be made by the federal government. The governing body of each and every county and, municipality, and district owning an airport or landing field or landing and take-off strip in the state of Wisconsin shall cause the surroundings of such airport, landing field or landing and take-off strip to be marked for aeronautical purposes, and maintain such marking, subject to and in accordance with law and such rules and regulations as may from time to time be made by the federal government and in so doing may cooperate with other states and subdivisions thereof and acquire rights and easements in property outside of the state.

AB1089,14,2 (2) The governing body of any county, city, village or town city, village, town, county, or district of this state is authorized to acquire, establish, construct, own, control, lease, equip, improve, maintain and operate airports or landing fields or landing and take-off strips or other aeronautical facilities in an adjoining state whose laws permit, subject to the laws of such state, but subject to the laws of this state in all matters relating to financing such aeronautical project.