2009 - 2010 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO 2009 SENATE BILL 291
April 20, 2010 - Offered by Senator
1An Act to amend
20.566 (2) (hm) and 66.1105 (4m) (b) 4.; and to create
(4e), 66.1105 (6) (f) 2. c. and 66.1105 (7) (au) of the statutes; relating to:
3authorizing the designation of a tax incremental district as distressed, or
4severely distressed, and expanding the use of donor tax incremental districts.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
(hm) Administration of tax incremental, and environmental
8remediation tax incremental, financing programs.
All moneys received from the fees 9
imposed under ss. 60.85 (5) (a) and (6) (am), 66.1105 (4e) (f),
and (6) (ae), and 10
66.1106 (7) (am) and (13) (b) to pay the costs of the department of revenue in 11
providing staff and administrative services associated with tax incremental districts 12
under ss. 60.85, 66.1105, and 66.1106, and to reimburse a municipality for costs
incurred by the municipality related to the department's administration of the tax 2
incremental financing program.
66.1105 (4e) Distressed, or severely distressed, tax incremental districts. 5
(a) Before the first day of the 24th month beginning after the effective date of this 6
paragraph .... [LRB inserts date], and subject to par. (am) and the limitations in this 7
subsection, a city may designate a tax incremental district that it created before 8
October 1, 2008, as a distressed or severely distressed tax incremental district if all 9
of the following occur or apply:
1. The local legislative body adopts a resolution finding that its project costs 11
incurred, with regard to the tax incremental district, exceed the amount of revenues 12
from all sources that the city expects the district to generate to pay off such project 13
costs during the life of the district.
2. The clerk of the local legislative body certifies the resolution and forwards 15
a copy of the certified resolution and a copy of all of the financial data that the local 16
legislative body used in the adoption process under subd. 1. to the department of 17
revenue and the joint review board.
3. Subject to par. (e), the planning commission amends the district's project 19
plan under sub. (4) (h) 1. to reflect the district's distressed status.
4. The tax incremental district has been in existence for at least 7 years before 21
the local legislative body adopts the resolution under subd. 1.
5. Except as provided in sub. 3., the local legislative body has not approved an 23
amendment to the tax incremental district's project plan after the effective date of 24
this paragraph .... [LRB inserts date].
(am) To be designated as a severely distressed tax incremental district under 2
par. (a), a district must meet all of the conditions under par. (a) and its value 3
increment in any year must have declined at least 25 percent from the district's 4
highest value increment determined by the department of revenue over the course 5
of the district's life. The joint review board may request that the department of 6
revenue certify that a district meets the decline in value increment percentage 7
described in this paragraph.
(b) 1. Adoption of a resolution under par. (a) 1. shall be preceded by a public 9
hearing held by the common council at which interested parties shall be afforded a 10
reasonable opportunity to express their views on the proposed designation of a 11
distressed, or severely distressed, tax incremental district. Notice of the hearing 12
shall be published as a class 2 notice under ch. 985. The notice shall describe the 13
resolution and shall advise that a copy of the resolution will be provided on request. 14
The notice shall also explain that the life of a distressed tax incremental district may 15
be extended, that it may receive excess tax increments from a donor district, and that 16
the life of the donor district may be extended to provide such increments. Before 17
publication, a copy of the notice shall be sent by 1st class mail to the chief executive 18
officer or administrator of all local governmental entities having the power to levy 19
taxes on property within the district and to the school board of any school district that 20
includes property located within the proposed district. For a county with no chief 21
executive officer or administrator, this notice shall be sent to the county board 22
2. Following receipt of the resolution and the financial data under par. (a) 2., 24
the joint review board shall evaluate the resolution and data to determine whether 25
the designation of the district as a distressed, or severely distressed, district or the
sharing of tax increments by a donor district with the distressed, or severely 2
distressed, district is likely to enhance the ability of the city to pay its project costs 3
related to the district within the time specified in par. (d) 2. The joint review board 4
may approve or deny the designation and shall send a written copy of its findings to 5
the common council.
3. A resolution adopted under par. (a) 1. may not take effect unless the joint 7
review board approves, by resolution, the designation under subd. 2. The joint 8
review board shall approve or deny the designation within 30 days after receiving the 9
resolution under subd. 2.
(c) If the department of revenue prescribes any forms that the city clerk must 11
complete as part of the designation of a distressed, or severely distressed, tax 12
incremental district, the clerk shall submit the forms to the department on or before 13
December 31 of the year the district is designated as distressed, or severely 14
(d) 1. Notwithstanding the time limits for the allocation of positive tax 16
increments under sub. (6) (a), but subject to sub. (6) (a) 1., and notwithstanding the 17
requirement under sub. (6) (f) 1. b., the department of revenue shall allocate positive 18
tax increments for up to 10 years after a district would otherwise be required to 19
terminate, if the district is designated as a distressed district under this subsection, 20
or up to 40 years after the district is created, if the district is designated as a severely 21
distressed district under this subsection.
2. Notwithstanding the time limits for termination under sub. (7) (ak) to (at), 23
but subject to sub. (7) (a) and (b), a district may remain in existence for up to 10 years 24
after the district would otherwise be required to terminate, if the district is 25
designated as a distressed district under this subsection, or up to 40 years after the
district is created, if the district is designated as a severely distressed district under 2
3. Notwithstanding the time limits and other provisions for termination under 4
sub. (7), a donor tax incremental district under sub. (6) (d), (dm), (e), and (f) may 5
share tax increments with a distressed, or severely distressed, district until the 6
earlier of the following occurs:
a. The distressed, or severely distressed, district terminates under sub. (7) (a), 8
(au), or (b).
b. Following its creation, the donor district has existed for 10 years after the 10
district would otherwise be required to terminate, if the district is sharing its 11
increment with a district designated as a distressed district under this subsection, 12
or until the donor district has been in existence for 40 years, if the district is sharing 13
its increment with a district designated as a severely distressed district under this 14
(e) A distressed, or severely distressed, tax incremental district may not do any 16
of the following:
1. Amend its project plan to add any new project costs.
2. Become part of a district with overlapping boundaries under sub. (10).
3. Expend any funds outside of the tax incremental district's boundaries.
4. Add any territory to the district under sub. (4) (h) 2.
5. Become a donor district under sub. (6) (d), (dm), (e), or (f).
6. Make any expenditures after its expenditure period, as determined before 23
its designation as a distressed, or severely distressed, district expires.
(f) If the joint review board approves a designation under par. (b) 3., the 25
department of revenue shall certify the district as a distressed, or severely
distressed, tax incremental district and shall send a copy of the certification to the 2
city and to all overlying taxation jurisdictions. The department may impose a fee of 3
$500 on a city for each district in the city that is so designated, for the additional costs 4
incurred by the department in administering such a district.
(g) If any tax increments allocated to a distressed, or severely distressed, tax 6
incremental district under this subsection exceed the amount needed to meet the 7
distressed, or severely distressed, district's annual expenditures identified in its 8
existing project plan, the excess amount shall be used to retire any outstanding debt 9
obligations of the district or to establish a reserve fund that may be used only to retire 10
outstanding debt obligations of the distressed, or severely distressed, district.
SB291-SSA1, s. 2m
66.1105 (4m) (b) 4. of the statutes is amended to read:
(b) 4. Before the joint review board submits its decision under 13
subd. 3., or sub. (4e) (b) 3.,
a majority of the members of the board may request that 14
the department of revenue review the objective facts contained in any of the 15
documents listed in subd. 1., or sub. (4e) (a) 2.
to determine whether the information 16
submitted to the board complies with this section or whether any of the information 17
contains a factual inaccuracy. The request must be in writing and must specify which 18
particular objective fact or item the members believe is incomplete or inaccurate. 19
Not later than 10 working days after receiving a request that complies with the 20
requirements of this subdivision, the department of revenue shall investigate the 21
issues raised in the request and shall send its written response to the board. If the 22
department of revenue determines that the information in the proposal does not 23
comply with this section or contains a factual inaccuracy, the department shall 24
return the proposal to the city. The board shall request, but may not require, that 25
the city resolve the problems in its proposal and resubmit the proposal to the board.
If the city resubmits its proposal, the board shall review the resubmitted proposal 2
and vote to approve or deny the proposal as specified in this paragraph.".
SB291-SSA1, s. 3
66.1105 (6) (f) 2. c. of the statutes is created to read:
(f) 2. c. The recipient district is a mixed-use or industrial-use 5
district that has been designated as a distressed, or severely distressed, district 6
under sub. (4e).
SB291-SSA1, s. 4
66.1105 (7) (au) of the statutes is created to read:
(au) With regard to a distressed, or severely distressed, tax 9
incremental district under sub. (4e), the time period specified in sub. (4e) (d) 2.
This act takes effect on October 1, 2009.