LRB-1209/1
MES/RAC/JK/JTK:cs:ch
2005 - 2006 LEGISLATURE
March 6, 2006 - Introduced by Representatives Stone, Honadel, Nischke,
Newcomer, Gielow, Jeskewitz, Underheim, Hundertmark, Vos, Huebsch and
J. Fitzgerald, cosponsored by Senators Plale, Darling, S. Fitzgerald, Stepp
and Kanavas. Referred to Committee on Urban and Local Affairs.
AB1089,2,2
1An Act to amend 16.70 (14), 19.42 (13) (a), 19.59 (1) (g) 1. a., 25.14 (5), 25.50 (1)
2(d), 32.02 (11), 59.69 (4g), 60.61 (2) (e), 62.23 (6) (am) 1. a., 66.0301 (1) (a),
366.0621 (1) (a), 66.0621 (1) (b), 66.1009 (intro.), 71.26 (1) (bm), 71.26 (1m) (g),
471.36 (1m), 71.45 (1t) (g), 79.02 (2) (b), 79.02 (3) (a), 114.105, 114.11 (1) to (4) and
5(5) (intro.), 114.12, 114.13, 114.135 (2), 114.135 (4), 114.135 (9), 114.136 (1) (a),
6114.136 (2) (a), 114.136 (4) (a), 114.136 (5), 114.14 (1), 114.14 (2) (f), 114.151,
7114.32, 114.33 (1), 114.33 (2), 114.33 (3), 114.33 (8), 114.33 (9), 114.33 (11) and
8114.33 (13); and
to create 24.61 (2) (a) 10., 24.61 (3) (a) 12., 25.17 (3) (b) 13.,
925.17 (3) (bc), 66.0603 (1m) (a) 3r., 66.0621 (6) (d), 70.11 (44), 71.05 (1) (c) 7.,
1077.25 (22), 77.54 (9a) (i), 78.01 (2) (g), 78.01 (2m) (h), 79.005 (1j), 79.005 (1k),
1179.02 (4), 114.002 (13), 219.09 (1) (g) and subchapter VI of chapter 229 [precedes
12229.860] of the statutes;
relating to: creating a local airport district and
13authorizing the creation of local airport districts; authorizing the Board of
14Commissioners of Public Lands to make loans to a county that contains a 1st
1class city; and authorizing the Investment Board to make loans to a county that
2contains a 1st class city from the state investment fund.
Analysis by the Legislative Reference Bureau
Creation and dissolution of a district
This bill creates a local airport district (district), which is a special purpose
district, in each county that owns or operates an airport that is classified by the
Federal Aviation Administration (FAA) as a transport airport which provides
scheduled air transportation services and which had in excess of 2,000,000 scheduled
passenger enplanements in the 12-month period before the bill takes effect. The bill
also authorizes one or more local governmental units (any city, village, or county) to
create a district by adopting enabling resolutions which establish a district. 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 political
subdivisions within its jurisdiction.
In connection with airport facilities, the powers of a district include the
construction, maintenance, management, and acquisition of property; the authority
to enter into contracts for a variety of purposes; the authority to employ personnel;
the authority to appoint a building inspector for airport facilities; the authority to
establish a fire department for airport facilities; the authority to issue revenue
bonds; the establishment of rates and collection of fees and charges for the use of
airport facilities or for services provided by the district; and the authority to enter
into partnerships, joint ventures, common ownership, or other arrangements with
other persons to further the district's purposes. A district may also establish and
enforce rules, regulations, and ordinances governing the use of airport facilities, and
may establish civil penalties for the violation of such rules, regulations, and
ordinances.
Under the bill, the district has concurrent police power with other authorized
peace officers within its jurisdiction, and the district may employ police officers who
may arrest any person on or in the district's airport facilities who the officers
reasonably believe has violated a state law or any rule promulgated by the district.
The district is also authorized to hire security personnel, or contract for such
personnel, to provide routine patrol functions.
In the case of the district that is created by the bill, and subject to approval by
the FAA and any other conditions agreed to by the county and the district, the county
which currently owns or operates the airport is required to transfer and assign all
of its rights, title, and interest in the airport and airport facilities that it owns or
operates either on the effective date of the bill or on a date agreed to by the county
and the district. Generally, such a date may not be later than the first day of the
seventh month after the bill's effective date, but the parties may agree to any other
terms or conditions that they prefer, notwithstanding the procedures specified in the
bill.
During the period of time after the district is created but before FAA approval
of the transfer, the county is required by the bill to cooperate with the district to
obtain any necessary approvals, and ensure the smooth operation of the airport and
airport facilities. The district, during this interim period and after a majority of the
members of its board are appointed and qualified, is authorized to exercise any of its
powers and duties, but only to the extent that is necessary to allow the district to
work with the county to obtain FAA approval of the transfer. Until the FAA approval
date, the county has the sole actual authority to act on behalf of the airport that the
county owns or operates, unless the county delegates some of its authority to the
district.
The district that is created in the bill is governed by a board that consists of four
persons appointed by the governor, subject to confirmation or rejection by the state
senate, and three persons appointed by the chief elected official of the county in
which the airport is located, subject to confirmation or rejection by the county board.
In general, members of the board are appointed to four-year terms. One of the
governor's appointees and one of the chief elected official's appointees must be from
one of the following cities: Cudahy, Oak Creek, St. Francis, or South Milwaukee. No
member of the board may hold a state or local elective office or be an employee of the
senate or any political subdivision. Members may be removed for cause before the
expiration of their terms, and may serve any number of terms, provided that they
serve no more than two consecutive terms.
If a district is created by one or more local governmental units, the district board
shall have seven members, all of whom generally serve for four-year terms.
Generally under the bill, a district may exercise the same sorts of powers under
the aeronautics statutes that a city, village, town, or county may currently exercise
with regard to airports, aircraft, and aeronautics facilities. These powers include the
authority to do all of the following: acquire, establish, own, and control airports or
landing fields in this state or an adjoining state; appropriate money for the operation,
improvement, or acquisition of an airport; acquire property by eminent domain for
airport purposes; and protect the aerial approaches to the site of an airport.
If a district provides for the payment of bonds that it has issued and the
performance of other contractual obligations, the district may be dissolved by its
district board. The airport, airport facilities, and other property of the district shall
be transferred to another political subdivision, district, or public body that agrees to
accept the transfer.
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
1Section
1. 16.70 (14) of the statutes is amended to read:
AB1089,4,32
16.70
(14) "State" does not include a district created under subch. II, III, IV,
or 3V
, or VI of ch. 229.
AB1089, s. 2
4Section
2. 19.42 (13) (a) of the statutes is amended to read:
AB1089,5,7
119.42
(13) (a) All positions to which individuals are regularly appointed by the
2governor, except the position of trustee of any private higher educational institution
3receiving state appropriations
and, the position of member of the district board of a
4local professional baseball park district created under subch. III of ch. 229
and, the
5position of member of the district board of a local cultural arts district created under
6subch. V of ch. 229
, and the position of member of the district board of a local airport
7district created under subch. VI of ch. 229.
AB1089, s. 3
8Section
3. 19.59 (1) (g) 1. a. of the statutes is amended to read:
AB1089,5,129
19.59
(1) (g) 1. a. "District" means a local professional baseball park district
10created under subch. III of ch. 229
or, a local professional football stadium district
11created under subch. IV of ch. 229
, or a local airport district created under subch. VI
12of ch. 229.
AB1089, s. 4
13Section
4. 24.61 (2) (a) 10. of the statutes is created to read:
AB1089,5,1514
24.61
(2) (a) 10. Bonds issued by a local airport district under subch. VI of ch.
15229.
AB1089, s. 5
16Section
5. 24.61 (3) (a) 12. of the statutes is created to read:
AB1089,5,1917
24.61
(3) (a) 12. A county that contains a 1st class city, to be used to fund any
18shortfall in operating revenues during a fiscal year, for a period not to exceed 120
19days.
AB1089, s. 6
20Section
6. 25.14 (5) of the statutes is amended to read:
AB1089,5,2221
25.14
(5) The assets of the state investment fund shall be invested as
22prescribed by s. 25.17 (3) (b), (ba)
, (bc), and (bd).
AB1089, s. 7
23Section
7. 25.17 (3) (b) 13. of the statutes is created to read:
AB1089,5,2524
25.17
(3) (b) 13. Bonds issued by a local airport district under subch. VI of ch.
25229.
AB1089, s. 8
1Section
8. 25.17 (3) (bc) of the statutes is created to read:
AB1089,6,52
25.17
(3) (bc) Have authority to make a loan from moneys in the state
3investment fund to a county that contains a 1st class city, to be used to fund any
4shortfall in operating revenues during a fiscal year, for a period not to exceed 120
5days.
AB1089, s. 9
6Section
9. 25.50 (1) (d) of the statutes is amended to read:
AB1089,6,177
25.50
(1) (d) "Local government" means any county, town, village, city, power
8district, sewerage district, drainage district, town sanitary district, public inland
9lake protection and rehabilitation district, local professional baseball park district
10created under subch. III of ch. 229, family care district under s. 46.2895, local
11professional football stadium district created under subch. IV of ch. 229, local
12cultural arts district created under subch. V of ch. 229,
local airport district created
13under subch. VI of ch. 229, public library system, school district or technical college
14district in this state, any commission, committee, board or officer of any
15governmental subdivision of this state, any court of this state, other than the court
16of appeals or the supreme court, or any authority created under s. 231.02, 233.02 or
17234.02.
AB1089, s. 10
18Section
10. 32.02 (11) of the statutes is amended to read:
AB1089,6,2319
32.02
(11) Any housing authority created under ss. 66.1201 to 66.1211;
20redevelopment authority created under s. 66.1333 community development
21authority created under s. 66.1335; local cultural arts district created under subch.
22V of ch. 229, subject to s. 229.844 (4) (c);
local airport district created under subch.
23VI of ch. 229; or local exposition district created under subch. II of ch. 229.