LRB-3348/1
CTS/MS/MGG/GMm/pjh/JK/JTK:wj:pg
2005 - 2006 LEGISLATURE
October 31, 2005 - Introduced by Representatives Shilling, Vruwink, Seidel,
Berceau, Boyle, Fields, Freese, Gronemus, Krawczyk, Kreibich, Lehman,
McCormick, Molepske, Moulton, Pettis, Richards, Sheridan, Turner and
Zepnick, cosponsored by Senators Lassa, Harsdorf, Erpenbach, Leibham,
Miller, Plale and
Roessler. Referred to Committee on Urban and Local
Affairs.
AB793,2,2
1An Act to renumber 44.02 (24) and 101.121 (4) (a);
to renumber and amend
271.07 (9m) (a), 71.07 (9r) (a), 71.28 (6) (a) and 71.47 (6) (a);
to amend 13.48 (7),
313.48 (15), 59.69 (4m), 60.64, 62.23 (7) (em), 71.07 (9m) (c), 71.28 (6) (c), 71.47
4(6) (c), 101.121 (4) (b), 101.19 (1) (intro.), 254.61 (1) (f) 2. and 823.21; and
to
5create 13.48 (10) (c), 20.143 (1) (gb), 41.11 (1) (bm), 44.02 (24) (b), 44.02 (24d),
671.07 (9m) (a) 2., 71.07 (9m) (g), 71.07 (9m) (h), 71.07 (9r) (a) 2., 71.28 (6) (a) 2.,
771.28 (6) (g), 71.28 (6) (h), 71.47 (6) (a) 2., 71.47 (6) (g), 71.47 (6) (h), 84.013 (3g),
886.36, 86.37, 101.121 (3) (c), 101.121 (4) (a) 2., 101.121 (5), 101.121 (6), 101.975
9(4), 560.03 (21m) and 560.083 of the statutes;
relating to: the regulation,
10preservation, and restoration of historic buildings, the supplement to the
11federal historic rehabilitation tax credit and the state historic rehabilitation
12tax credit, requiring the certification of downtowns, promoting certain
13downtown areas in this state, highway projects involving business and
1downtown areas, the construction of major highway projects involving a
2bypass, granting rule-making authority, and making appropriations.
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 (Commerce) 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 Commerce, 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, Commerce 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 Commerce 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 Commerce review
any decision of a local governmental unit that requires the owner to comply with a
provision in a local ordinance. Commerce 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, Commerce must follow the existing
procedure for resolving conflicts between local orders and orders of Commerce 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
Commerce, or of a local governmental unit acting as an agent of Commerce, 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 Commerce 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 Commerce or the particular local governmental unit to modify a
reviewed decision, based upon these negotiations. In addition, the bill requires
Commerce, 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 buildings used as multifamily dwellings
Current law requires the department to promulgate a multifamily dwelling
code that provides uniform standards for the construction of multifamily dwellings
and their components. With certain exceptions, a multifamily dwelling is an
apartment building, row house, town house, condominium, or manufactured
building that does not exceed 60 feet in height or six stories and that consists of three
or more attached dwelling units. The Multifamily Dwelling Code currently applies
to any building or portion of a building that is converted to a multifamily dwelling
after April 1, 1995, unless the building is a qualified historic building and the owner
elects to be subject to the State Historic Building Code. Rules promulgated by the
department also permit a local governmental unit to exercise jurisdiction over the
construction and inspection of multifamily dwellings by adopting ordinances that
are consistent with the multifamily dwelling code. Currently, the multifamily
dwelling code contains specific requirements relating to the type, height, and design
of handrails and guardrails that are required to be used in multifamily dwellings.
This bill permits a local governmental unit to adopt an ordinance that requires
the local governmental unit to grant a variance from these handrail and guardrail
requirements, as they apply to a qualified historic building that is converted from a
single-family dwelling to a multifamily dwelling, if the owner of the qualified
historic building shows that the type, height, and design of the handrail or guardrail
proposed for installation is historically appropriate and if the handrail or guardrail
is at least as protective of public safety as the rail that is otherwise required.
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 2006, 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 State 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 2006, 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 Commerce 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 Commerce to promulgate
rules pursuant to which Commerce 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 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 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 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 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:
AB793, s. 1
1Section
1. 13.48 (7) of the statutes is amended to read:
AB793,7,162
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
12legislative approval to the joint committee on finance in the form of proposed
13legislation prepared in proper form.
If the building commission includes any
14recommendation for construction of a state office building, the commission shall
15ensure that the recommended location of the building is consistent with construction
16requirements under sub. (10) (c).
AB793, s. 2
17Section
2. 13.48 (10) (c) of the statutes is created to read:
AB793,7,2518
13.48
(10) (c) Unless otherwise required by law, the building commission shall
19not authorize the construction of any state office building, whether for utilization by
20a single agency or otherwise, to be located outside of a downtown area, as certified
21under s. 560.03 (21m), unless the cost of locating the building inside a downtown area
22is more than 10 percent greater than the average cost of locating the building in that
23portion of the geographic area that is served by the functions to be performed in the
24building on the date of initial occupancy outside of any downtown area, as
25determined by the department of administration.
AB793, s. 3
1Section
3. 13.48 (15) of the statutes is amended to read:
AB793,8,122
13.48
(15) Acquisition of leasehold interests. Subject to the requirements
3of s. 20.924 (1) (i), the building commission shall have the authority to acquire
4leasehold interests in land and buildings where such authority is not otherwise
5provided to an agency by law.
The building commission shall not approve any lease
6for state office facilities, whether for utilization by a single agency or otherwise, to
7be located outside of a downtown area, as certified under s. 560.03 (21m), unless the
8cost of locating the facilities inside a downtown area is more than 10 percent greater
9than the average cost of locating the facilities in that portion of the geographic area
10that is served by the functions to be performed in the facilities on the date of initial
11occupancy under the lease outside of any downtown area, as determined by the
12department of administration.
AB793, s. 4
13Section
4. 20.143 (1) (gb) of the statutes is created to read:
AB793,8,1614
20.143
(1) (gb)
Certified downtowns and business district reconstruction. All
15moneys received from the historical society under s. 44.02 (24d) (b) for the purpose
16of providing staff for the administration of ss. 560.03 (21m) and 560.083.
AB793, s. 5
17Section
5. 41.11 (1) (bm) of the statutes is created to read:
AB793,8,2018
41.11
(1) (bm) Promote travel to business areas that are or have been the
19subject of revitalization efforts under the State Main Street Program under s.
20560.081 or that are certified downtowns under s. 560.03 (21m).
AB793, s. 6
21Section
6. 44.02 (24) of the statutes is renumbered 44.02 (24) (a).
AB793, s. 7
22Section
7. 44.02 (24) (b) of the statutes is created to read:
AB793,8,2523
44.02
(24) (b) Charge a fee of $150 for a certification under par. (a). The
24historical society shall collect the fee under this paragraph when an applicant
25applies for certification under par. (a).
AB793, s. 8
1Section
8. 44.02 (24d) of the statutes is created to read:
AB793,9,62
44.02
(24d) (a) Promulgate by rule procedures, standards, and forms necessary
3to certify, and shall certify, expenditures for preservation or rehabilitation of historic
4property for the purposes of ss. 71.07 (9m) (a), 71.28 (6) (a), and 71.47 (6) (a). Such
5standards shall be substantially similar to the standards used by the secretary of the
6interior to certify rehabilitations under
26 USC 47 (c) (2).
AB793,9,137
(b) Charge a fee for a certification under par. (a) equal to 2 percent of the
8qualified rehabilitation expenditures for the historic property that is the subject of
9the certification, except that no fee under this paragraph may be less than $300 nor
10more than $20,000. The historical society shall collect the fee under this paragraph
11when an applicant applies for certification under par. (a). Fifty percent of the amount
12collected under this paragraph shall be deposited in the appropriation account under
13s. 20.143 (1) (gb).
AB793, s. 9
14Section
9. 59.69 (4m) of the statutes is amended to read:
AB793,9,2515
59.69
(4m) Historic preservation. A county, as an exercise of its zoning and
16police powers for the purpose of promoting the health, safety and general welfare of
17the community and of the state, may regulate by ordinance any place, structure or
18object with a special character, historic interest, aesthetic interest or other
19significant value, for the purpose of preserving the place, structure or object and its
20significant characteristics. The county may create a landmarks commission to
21designate historic landmarks and establish historic districts. The county may
22regulate all historic landmarks and all property within each historic district to
23preserve the historic landmarks and property within the district and the character
24of the district
, and shall interpret the county's regulations liberally to facilitate the
25preservation and restoration of historic buildings and structures.
AB793, s. 10
1Section
10. 60.64 of the statutes is amended to read:
AB793,10,12
260.64 Historic preservation. The town board, in the exercise of its zoning
3and police powers for the purpose of promoting the health, safety and general welfare
4of the community and of the state, may regulate any place, structure or object with
5a special character, historic interest, aesthetic interest or other significant value for
6the purpose of preserving the place, structure or object and its significant
7characteristics. The town board may create a landmarks commission to designate
8historic landmarks and establish historic districts. The board may regulate all
9historic landmarks and all property within each historic district to preserve the
10historic landmarks and property within the district and the character of the district
,
11and shall interpret the board's regulations liberally to facilitate the preservation and
12restoration of historic buildings and structures.
AB793, s. 11
13Section
11. 62.23 (7) (em) of the statutes is amended to read:
AB793,11,414
62.23
(7) (em)
Historic preservation. A city, as an exercise of its zoning and
15police powers for the purpose of promoting the health, safety and general welfare of
16the community and of the state, may regulate by ordinance, or if a city contains any
17property that is listed on the national register of historic places in Wisconsin or the
18state register of historic places shall, not later than 1995, enact an ordinance to
19regulate, any place, structure or object with a special character, historic,
20archaeological or aesthetic interest, or other significant value, for the purpose of
21preserving the place, structure or object and its significant characteristics. A city
22may create a landmarks commission to designate historic or archaeological
23landmarks and establish historic districts. The city may regulate, or if the city
24contains any property that is listed on the national register of historic places in
25Wisconsin or the state register of historic places shall regulate, all historic or
1archaeological landmarks and all property within each historic district to preserve
2the historic or archaeological landmarks and property within the district and the
3character of the district
, and shall interpret the city's regulations liberally to
4facilitate the preservation and restoration of historic buildings and structures.
AB793, s. 12
5Section
12. 71.07 (9m) (a) of the statutes is renumbered 71.07 (9m) (a) 1. and
6amended to read:
AB793,11,147
71.07
(9m) (a) 1.
Any Except as provided in subd. 2., any person may
claim as
8a credit against
the taxes
otherwise due imposed under
this chapter
s. 71.02, up to
9the amount of those taxes, an amount equal to 5% of the costs of qualified
10rehabilitation expenditures, as defined in section
47 (c) (2) of the
internal revenue
11code Internal Revenue Code, for certified historic structures on property located in
12this state
, if the physical work of construction or destruction in preparation for
13construction begins after December 31, 1988, and the rehabilitated property is
14placed in service after June 30, 1989.
AB793, s. 13
15Section
13. 71.07 (9m) (a) 2. of the statutes is created to read:
AB793,11,2216
71.07
(9m) (a) 2. a. Any person may claim as a credit against the taxes imposed
17under s. 71.02, up to the amount of those taxes, an amount equal to 20 percent of the
18costs of qualified rehabilitation expenditures, as defined in section
47 (c) (2) of the
19Internal Revenue Code, for certified historic structures on property located in a
20certified downtown under s. 560.03 (21m) or included in a business revitalization
21under s. 560.081, if the physical work of construction or destruction in preparation
22for construction begins after December 31, 2005.