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2009 - 2010 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO 2009 SENATE BILL 291
April 20, 2010 - Offered by Senator Decker.
SB291-SSA1,1,4 1An Act to amend 20.566 (2) (hm) and 66.1105 (4m) (b) 4.; and to create 66.1105
2(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:
SB291-SSA1, s. 1 5Section 1. 20.566 (2) (hm) of the statutes, as affected by 2009 Wisconsin Act
628
, is amended to read:
SB291-SSA1,2,27 20.566 (2) (hm) Administration of tax incremental, and environmental
8remediation tax incremental, financing programs.
All moneys received from the fees
9imposed under ss. 60.85 (5) (a) and (6) (am), 66.1105 (4e) (f), (5) (a), and (6) (ae), and
1066.1106 (7) (am) and (13) (b) to pay the costs of the department of revenue in
11providing staff and administrative services associated with tax incremental districts
12under ss. 60.85, 66.1105, and 66.1106, and to reimburse a municipality for costs

1incurred by the municipality related to the department's administration of the tax
2incremental financing program.
SB291-SSA1, s. 2 3Section 2. 66.1105 (4e) of the statutes is created to read:
SB291-SSA1,2,94 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
6paragraph .... [LRB inserts date], and subject to par. (am) and the limitations in this
7subsection, a city may designate a tax incremental district that it created before
8October 1, 2008, as a distressed or severely distressed tax incremental district if all
9of the following occur or apply:
SB291-SSA1,2,1310 1. The local legislative body adopts a resolution finding that its project costs
11incurred, with regard to the tax incremental district, exceed the amount of revenues
12from all sources that the city expects the district to generate to pay off such project
13costs during the life of the district.
SB291-SSA1,2,1714 2. The clerk of the local legislative body certifies the resolution and forwards
15a copy of the certified resolution and a copy of all of the financial data that the local
16legislative body used in the adoption process under subd. 1. to the department of
17revenue and the joint review board.
SB291-SSA1,2,1918 3. Subject to par. (e), the planning commission amends the district's project
19plan under sub. (4) (h) 1. to reflect the district's distressed status.
SB291-SSA1,2,2120 4. The tax incremental district has been in existence for at least 7 years before
21the local legislative body adopts the resolution under subd. 1.
SB291-SSA1,2,2422 5. Except as provided in sub. 3., the local legislative body has not approved an
23amendment to the tax incremental district's project plan after the effective date of
24this paragraph .... [LRB inserts date].
SB291-SSA1,3,7
1(am) To be designated as a severely distressed tax incremental district under
2par. (a), a district must meet all of the conditions under par. (a) and its value
3increment in any year must have declined at least 25 percent from the district's
4highest value increment determined by the department of revenue over the course
5of the district's life. The joint review board may request that the department of
6revenue certify that a district meets the decline in value increment percentage
7described in this paragraph.
SB291-SSA1,3,228 (b) 1. Adoption of a resolution under par. (a) 1. shall be preceded by a public
9hearing held by the common council at which interested parties shall be afforded a
10reasonable opportunity to express their views on the proposed designation of a
11distressed, or severely distressed, tax incremental district. Notice of the hearing
12shall be published as a class 2 notice under ch. 985. The notice shall describe the
13resolution and shall advise that a copy of the resolution will be provided on request.
14The notice shall also explain that the life of a distressed tax incremental district may
15be extended, that it may receive excess tax increments from a donor district, and that
16the life of the donor district may be extended to provide such increments. Before
17publication, a copy of the notice shall be sent by 1st class mail to the chief executive
18officer or administrator of all local governmental entities having the power to levy
19taxes on property within the district and to the school board of any school district that
20includes property located within the proposed district. For a county with no chief
21executive officer or administrator, this notice shall be sent to the county board
22chairperson.
SB291-SSA1,4,523 2. Following receipt of the resolution and the financial data under par. (a) 2.,
24the joint review board shall evaluate the resolution and data to determine whether
25the designation of the district as a distressed, or severely distressed, district or the

1sharing of tax increments by a donor district with the distressed, or severely
2distressed, district is likely to enhance the ability of the city to pay its project costs
3related to the district within the time specified in par. (d) 2. The joint review board
4may approve or deny the designation and shall send a written copy of its findings to
5the common council.
SB291-SSA1,4,96 3. A resolution adopted under par. (a) 1. may not take effect unless the joint
7review board approves, by resolution, the designation under subd. 2. The joint
8review board shall approve or deny the designation within 30 days after receiving the
9resolution under subd. 2.
SB291-SSA1,4,1410 (c) If the department of revenue prescribes any forms that the city clerk must
11complete as part of the designation of a distressed, or severely distressed, tax
12incremental district, the clerk shall submit the forms to the department on or before
13December 31 of the year the district is designated as distressed, or severely
14distressed.
SB291-SSA1,4,2115 (d) 1. Notwithstanding the time limits for the allocation of positive tax
16increments under sub. (6) (a), but subject to sub. (6) (a) 1., and notwithstanding the
17requirement under sub. (6) (f) 1. b., the department of revenue shall allocate positive
18tax increments for up to 10 years after a district would otherwise be required to
19terminate, if the district is designated as a distressed district under this subsection,
20or up to 40 years after the district is created, if the district is designated as a severely
21distressed district under this subsection.
SB291-SSA1,5,222 2. Notwithstanding the time limits for termination under sub. (7) (ak) to (at),
23but subject to sub. (7) (a) and (b), a district may remain in existence for up to 10 years
24after the district would otherwise be required to terminate, if the district is
25designated as a distressed district under this subsection, or up to 40 years after the

1district is created, if the district is designated as a severely distressed district under
2this subsection.
SB291-SSA1,5,63 3. Notwithstanding the time limits and other provisions for termination under
4sub. (7), a donor tax incremental district under sub. (6) (d), (dm), (e), and (f) may
5share tax increments with a distressed, or severely distressed, district until the
6earlier of the following occurs:
SB291-SSA1,5,87 a. The distressed, or severely distressed, district terminates under sub. (7) (a),
8(au), or (b).
SB291-SSA1,5,149 b. Following its creation, the donor district has existed for 10 years after the
10district would otherwise be required to terminate, if the district is sharing its
11increment with a district designated as a distressed district under this subsection,
12or until the donor district has been in existence for 40 years, if the district is sharing
13its increment with a district designated as a severely distressed district under this
14subsection.
SB291-SSA1,5,1615 (e) A distressed, or severely distressed, tax incremental district may not do any
16of the following:
SB291-SSA1,5,1717 1. Amend its project plan to add any new project costs.
SB291-SSA1,5,1818 2. Become part of a district with overlapping boundaries under sub. (10).
SB291-SSA1,5,1919 3. Expend any funds outside of the tax incremental district's boundaries.
SB291-SSA1,5,2020 4. Add any territory to the district under sub. (4) (h) 2.
SB291-SSA1,5,2121 5. Become a donor district under sub. (6) (d), (dm), (e), or (f).
SB291-SSA1,5,2322 6. Make any expenditures after its expenditure period, as determined before
23its designation as a distressed, or severely distressed, district expires.
SB291-SSA1,6,424 (f) If the joint review board approves a designation under par. (b) 3., the
25department of revenue shall certify the district as a distressed, or severely

1distressed, tax incremental district and shall send a copy of the certification to the
2city 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
4incurred by the department in administering such a district.
SB291-SSA1,6,105 (g) If any tax increments allocated to a distressed, or severely distressed, tax
6incremental district under this subsection exceed the amount needed to meet the
7distressed, or severely distressed, district's annual expenditures identified in its
8existing project plan, the excess amount shall be used to retire any outstanding debt
9obligations of the district or to establish a reserve fund that may be used only to retire
10outstanding debt obligations of the distressed, or severely distressed, district.
SB291-SSA1, s. 2m 11Section 2m. 66.1105 (4m) (b) 4. of the statutes is amended to read:
SB291-SSA1,7,212 66.1105 (4m) (b) 4. Before the joint review board submits its decision under
13subd. 3., or sub. (4e) (b) 3., a majority of the members of the board may request that
14the department of revenue review the objective facts contained in any of the
15documents listed in subd. 1., or sub. (4e) (a) 2. to determine whether the information
16submitted to the board complies with this section or whether any of the information
17contains a factual inaccuracy. The request must be in writing and must specify which
18particular objective fact or item the members believe is incomplete or inaccurate.
19Not later than 10 working days after receiving a request that complies with the
20requirements of this subdivision, the department of revenue shall investigate the
21issues raised in the request and shall send its written response to the board. If the
22department of revenue determines that the information in the proposal does not
23comply with this section or contains a factual inaccuracy, the department shall
24return the proposal to the city. The board shall request, but may not require, that
25the city resolve the problems in its proposal and resubmit the proposal to the board.

1If the city resubmits its proposal, the board shall review the resubmitted proposal
2and vote to approve or deny the proposal as specified in this paragraph.".
SB291-SSA1, s. 3 3Section 3. 66.1105 (6) (f) 2. c. of the statutes is created to read:
SB291-SSA1,7,64 66.1105 (6) (f) 2. c. The recipient district is a mixed-use or industrial-use
5district that has been designated as a distressed, or severely distressed, district
6under sub. (4e).
SB291-SSA1, s. 4 7Section 4. 66.1105 (7) (au) of the statutes is created to read:
SB291-SSA1,7,98 66.1105 (7) (au) With regard to a distressed, or severely distressed, tax
9incremental district under sub. (4e), the time period specified in sub. (4e) (d) 2.
SB291-SSA1, s. 5 10Section 5. Effective date.
SB291-SSA1,7,1111 (1) This act takes effect on October 1, 2009.
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