Amendment ASA1-AB770

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2017 - 2018 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 770

January 12, 2018 - Offered by Representative R. Brooks.

AB770-ASA1,2,7 An Act to repeal 62.23 (7) (d) 2m. a., 66.0617 (9) (b), 66.0617 (9) (c), 66.0617 (9) (d) and 66.10015 (2) (d); to renumber 62.23 (7) (d) 2m. b., 66.1102 (1) (a) and 66.1102 (1) (b); to renumber and amend 32.09 (1m), 66.0617 (9) (a), 66.1105 (2) (ab), 236.13 (2) (a) 1. and 236.13 (2) (a) 2.; to amend 32.19 (4m) (a) (intro.), 32.19 (4m) (b) 1., 32.20, 66.0617 (6) (g), 66.0617 (7), 66.0628 (4) (a), 66.0821 (4) (c), 66.1009 (1), 66.1015 (title), 66.1102 (title), 66.1105 (2) (f) 3. (intro.), 66.1105 (4) (c), 66.1105 (4) (gm) 4. a., 66.1105 (4) (gm) 4. bm., 66.1105 (4) (gm) 6., 66.1105 (4m) (b) 2., 66.1105 (6) (a) 8., 66.1105 (6) (g) 3., 101.65 (1) (a), 236.34 (1) (ar) 1., 236.45 (6) (am) and 281.33 (6) (a) 1.; and to create 32.09 (1m) (b), 32.19 (2) (hm), 32.19 (4m) (a) 4., 66.0602 (3) (m), 66.0617 (7r), 66.10013, 66.10014, 66.10015 (1) (f), 66.10015 (5), 66.10015 (6), 66.1015 (3), 66.1102 (1) (ae), 66.1102 (5), 66.1105 (2) (n) 1., 66.1105 (2) (n) 2., 66.1105 (2) (o), 66.1105 (4) (gm) 4. am., 66.1105 (6) (a) 14., 66.1105 (7) (ak) 5., 66.1108, 101.65 (1c), 236.13 (2) (ad), 236.13 (2) (am) 1d., 236.13 (2) (am) 1m., 236.13 (2) (am) 3. and 236.45 (6) (c) of the statutes; relating to: workforce housing development tax incremental districts; local fees and charges; local levy limits; subdivision approval conditions; plat approval conditions; expiration of certain project approvals; division of land by certified survey map; erosion control and storm water management; limiting certain local regulatory authority; relocation benefits in condemnation proceedings; and zoning ordinance amendments.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB770-ASA1,1 Section 1 . 32.09 (1m) of the statutes is renumbered 32.09 (1m) (a) and amended to read:

AB770-ASA1,2,17 32.09 (1m) (a) As a basis for determining value, a commission in condemnation or a court may shall consider the price and other terms and circumstances of any good faith sale or contract to sell and purchase comparable property. A sale or contract is comparable within the meaning of this subsection paragraph if it was made within a reasonable time before or after the date of evaluation and the property is sufficiently similar in the relevant market, with respect to situation, usability, improvements, and other characteristics, to warrant a reasonable belief that it is comparable to the property being valued.

AB770-ASA1,2 Section 2 . 32.09 (1m) (b) of the statutes is created to read:

AB770-ASA1,2,21 32.09 (1m) (b) As a basis for determining value, a commission in condemnation or a court shall consider, if provided by the owner, an appraisal based on the income approach and an appraisal based on the cost approach.

AB770-ASA1,3 Section 3 . 32.19 (2) (hm) of the statutes is created to read:

AB770-ASA1,3,6 32.19 (2) (hm) “Reasonable project costs” means the total of all of the following costs that an owner displaced person of an owner-occupied business or farm operation or tenant displaced person of a tenant-occupied business or farm operation must reasonably incur to make a business or farm operation to which the owner or tenant moves a comparable replacement business or farm operation under sub. (4m):

AB770-ASA1,3,11 1. Capital costs, including the actual costs of the construction of improvements, new buildings, structures, and fixtures; the demolition, alteration, remodeling, repair or reconstruction of existing buildings, structures, and fixtures; the removal or containment of, or the restoration of soil or groundwater affected by, environmental pollution; and the clearing and grading of land.

AB770-ASA1,3,15 2. Financing costs, including all interest paid to holders of evidences of indebtedness issued to pay for project costs and any premium paid over the principal amount of the obligations because of the redemption of the obligations prior to maturity.

AB770-ASA1,3,17 3. Professional service costs, including costs incurred for architectural, planning, engineering, and legal advice and services.

AB770-ASA1,3,19 4. Imputed administrative costs, including reasonable charges for the time spent by the owner or tenant in connection with the implementation of the project.

AB770-ASA1,4,3 5. Costs related to the construction or alteration of sewerage treatment plants, water treatment plants or other environmental protection devices, storm or sanitary sewer lines, water lines, or amenities on streets; the relocation of utility lines or other utility infrastructure, including any lines or infrastructure related to an electric utility, natural gas utility, or telecommunications utility; the installation of infrastructure necessary to provide utility service to the property, including any service from an electric utility, natural gas utility, or telecommunications utility; or the rebuilding or expansion of streets if such costs are required by the applicable municipality and are not paid for by the municipality.

AB770-ASA1,4 Section 4 . 32.19 (4m) (a) (intro.) of the statutes is amended to read:

AB770-ASA1,4,22 32.19 (4m) (a) Owner-occupied business or farm operation. (intro.) In addition to amounts otherwise authorized by this subchapter, the condemnor shall make a payment, not to exceed $50,000, to any owner displaced person who has owned and occupied the business operation, or owned the farm operation, for not less than one year prior to the initiation of negotiations for the acquisition of the real property on which the business or farm operation lies, and who actually purchases a comparable replacement business or farm operation for the acquired property within 2 years after the date the person vacates the acquired property or receives payment from the condemnor, whichever is later. An owner displaced person who has owned and occupied the business operation, or owned the farm operation, for not less than one year prior to the initiation of negotiations for the acquisition of the real property on which the business or farm operation lies may elect to receive the payment under par. (b) 1. in lieu of the payment under this paragraph, but the amount of payment under par. (b) 1. to such an owner displaced person may not exceed the amount the owner displaced person is eligible to receive under this paragraph. If the condemnor is a village, town, or city, the payment by the condemnor under this paragraph may not exceed $100,000. The additional payment under this paragraph shall include the following amounts:

AB770-ASA1,5 Section 5 . 32.19 (4m) (a) 4. of the statutes is created to read:

AB770-ASA1,4,25 32.19 (4m) (a) 4. Any reasonable project costs incurred or to be incurred by the displaced person.

AB770-ASA1,6 Section 6. 32.19 (4m) (b) 1. of the statutes is amended to read:

AB770-ASA1,5,11 32.19 (4m) (b) 1. The amount, not to exceed $30,000, which that is necessary to lease or rent a comparable replacement business or farm operation for a period of 4 years, plus any reasonable project costs incurred or to be incurred by the tenant displaced person. If the condemnor is a village, town, or city, the amount paid under this subdivision may not exceed $80,000. The rental payment shall be computed by determining the average monthly rent paid for the property from which the person was displaced for the 12 months prior to the initiation of negotiations or, if displacement is not a direct result of acquisition, such other event as determined by the department of administration and the monthly rent of a comparable replacement business or farm operation, and multiplying the difference by 48; or

AB770-ASA1,7 Section 7 . 32.20 of the statutes is amended to read:

AB770-ASA1,6,7 32.20 Procedure for collection of itemized items of compensation. Claims for damages itemized in ss. 32.19 and 32.195 shall be filed with the condemnor carrying on the project through which condemnee's or claimant's claims arise. All such claims must be filed after the damages upon which they are based have fully materialized but not later than 2 years after the condemnor takes physical possession of the entire property acquired or such other event as determined by the department of administration by rule. If such claim is not allowed within 90 days after the filing thereof, the claimant has a right of action against the condemnor carrying on the project through which the claim arises. Such action shall be commenced in a court of record in the county wherein the damages occurred. In causes of action, involving any state commission, board or other agency, excluding counties, the sum recovered by the claimant shall be paid out of any funds appropriated to such condemning agency. Any judgment shall be appealable by either party and any amount recovered by the body against which the claim was filed, arising from costs, counterclaims, punitive damages or otherwise may be used as an offset to any amount owed by it to the claimant, or may be collected in the same manner and form as any other judgment. The court shall award litigation expenses, as defined in s. 32.28 (1), to a claimant if the award of damages for the claimant exceeds the sum of the jurisdictional offer or highest written offer and the itemized costs under ss. 32.19 and 32.195 by 15 percent in an action under this section.

AB770-ASA1,8 Section 8 . 62.23 (7) (d) 2m. a. of the statutes is repealed.

AB770-ASA1,9 Section 9 . 62.23 (7) (d) 2m. b. of the statutes is renumbered 62.23 (7) (d) 2m.

AB770-ASA1,10 Section 10 . 66.0602 (3) (m) of the statutes is created to read:

AB770-ASA1,6,14 66.0602 (3) (m) The levy increase limit otherwise applicable under this section to a city, village, or town in the current year is increased by $1,000 for each new single-family residential dwelling unit for which a city, village, or town issues an occupancy permit in the preceding year and that is all of the following:

AB770-ASA1,6,16 1. Located on a parcel of no more than 0.25 acre in a city or village, or on a parcel of no more than one acre in a town.

AB770-ASA1,6,18 2. Sold in the preceding year for not more than 80 percent of the median price of a new residential dwelling unit in the city, village, or town in the preceding year.

AB770-ASA1,11 Section 11 . 66.0617 (6) (g) of the statutes is amended to read:

AB770-ASA1,7,6 66.0617 (6) (g) Shall Except as provided under this paragraph, shall be payable by the developer or the property owner to the municipality in full upon the issuance of a building permit by the municipality. Except as provided in this paragraph, if the total amount of impact fees due for a development will be more than $75,000, a developer may defer payment of the impact fees for a period of 4 years from the date of the issuance of the building permit or until 6 months before the municipality incurs the costs to construct, expand, or improve the public facilities related to the development for which the fee was imposed, whichever is earlier. If the developer elects to defer payment under this paragraph, the developer shall maintain in force a bond or irrevocable letter of credit in the amount of the unpaid fees executed in the name of the municipality. A developer may not defer payment of impact fees for projects that have been previously approved.

AB770-ASA1,12 Section 12 . 66.0617 (7) of the statutes is amended to read:

AB770-ASA1,7,15 66.0617 (7) Low-cost, workforce housing. An ordinance enacted under this section may provide for an exemption from, or a reduction in the amount of, impact fees on land development that provides low-cost housing, except that no or workforce housing, as defined in s. 66.1105 (2) (n). Under no circumstances may the amount of an impact fee for which an exemption or reduction is provided under this subsection may be shifted to any other development in the land development in which the low-cost housing or workforce housing is located or to any other land development in the municipality.

AB770-ASA1,13 Section 13 . 66.0617 (7r) of the statutes is created to read:

AB770-ASA1,7,19 66.0617 (7r) Impact fee reports. At the time that the municipality collects an impact fee, it shall provide to the developer from which it received the fee an accounting of how the fee will be spent.

AB770-ASA1,14 Section 14 . 66.0617 (9) (a) of the statutes is renumbered 66.0617 (9) and amended to read:

AB770-ASA1,8,24 66.0617 (9) Refund of impact fees. Subject to pars. (b), (c), and (d), and with regard to an impact fee that is collected after April 10, 2006, an ordinance enacted under this section shall specify that impact Except as provided in this subsection, impact fees that are collected by a municipality within 7 years of the effective date of the ordinance, but are not used within 10 8 years after the effective date of the ordinance they are collected to pay the capital costs for which they were imposed, shall be refunded to the current owner of payer of fees for the property with respect to which the impact fees were imposed, along with any interest that has accumulated, as described in sub. (8). The ordinance shall specify, by type of public facility, reasonable time periods within which impact fees must be spent or refunded under this subsection, subject to the 10-year limit in this paragraph and the extended time period specified in par. (b). In determining the length of the time periods under the ordinance, a municipality shall consider what are appropriate planning and financing periods for the particular types of public facilities for which the impact fees are imposed. Impact fees that are collected for capital costs related to lift stations or collecting and treating sewage that are not used within 10 years after they are collected to pay the capital costs for which they were imposed, shall be refunded to the payer of fees for the property with respect to which the impact fees were imposed, along with any interest that has accumulated, as described in sub. (8). The 10-year time limit for using impact fees that is specified under this subsection may be extended for 3 years if the municipality adopts a resolution stating that, due to extenuating circumstances or hardship in meeting the 10-year limit, it needs an additional 3 years to use the impact fees that were collected. The resolution shall include detailed written findings that specify the extenuating circumstances or hardship that led to the need to adopt a resolution under this subsection. For purposes of the time limits in this subsection, an impact fee is paid on the date a developer obtains a bond or irrevocable letter of credit in the amount of the unpaid fees executed in the name of the municipality under sub. (6) (g).

AB770-ASA1,15 Section 15 . 66.0617 (9) (b) of the statutes is repealed.

AB770-ASA1,16 Section 16. 66.0617 (9) (c) of the statutes is repealed.

AB770-ASA1,17 Section 17 . 66.0617 (9) (d) of the statutes is repealed.

AB770-ASA1,18 Section 18 . 66.0628 (4) (a) of the statutes is amended to read:

AB770-ASA1,9,11 66.0628 (4) (a) Any person aggrieved by a fee imposed by a political subdivision because the person does not believe that the fee bears a reasonable relationship to the service for which the fee is imposed may appeal the reasonableness of the fee to the tax appeals commission by filing a petition with the commission within 60 90 days after the fee's imposition, as provided under s. 73.01 (5) with respect to income or franchise tax cases, and the fee is due and payable. The commission's decision may be reviewed under s. 73.015. For appeals brought under this subsection, the filing fee required under s. 73.01 (5) (a) does not apply.

AB770-ASA1,19 Section 19. 66.0821 (4) (c) of the statutes is amended to read:

AB770-ASA1,9,25 66.0821 (4) (c) For the purpose of making equitable charges for all services rendered by a storm water and surface water sewerage system to users, the property served may be classified, taking into consideration the volume or peaking of storm water or surface water discharge that is caused by the area of impervious surfaces, topography, impervious surfaces and other surface characteristics, extent and reliability of mitigation or treatment measures available to service the property, apart from measures provided by the storm water and surface water sewerage system, and any other considerations that are reasonably relevant to a use made of the storm water and surface water sewerage system. The charges may also include standby charges to property not yet developed with significant impervious surfaces for which capacity has been made available in the storm water and surface water sewerage system. No additional charges, beyond those charged to similar properties, may be charged to a property for services rendered by a storm and surface water system for a property that continually retains 90 percent of the difference between the post-development and predevelopment runoff on site.

AB770-ASA1,20 Section 20 . 66.10013 of the statutes is created to read:

AB770-ASA1,10,5 66.10013 Housing affordability report. (1) In this section, “municipality” means a city or village with a population of 10,000 or more.

AB770-ASA1,10,9 (2) Not later than January 1, 2020, a municipality shall prepare a report of the municipality's implementation of the housing element of the municipality's comprehensive plan under s. 66.1001. The municipality shall update the report annually, not later than January 31. The report shall contain all of the following:

AB770-ASA1,10,11 (a) The number of subdivision plats, certified survey maps, condominium plats, and building permit applications approved in the prior year.

AB770-ASA1,10,14 (b) The total number of new residential dwelling units proposed in all subdivision plats, certified survey maps, condominium plats, and building permit applications that were approved by the municipality in the prior year.

AB770-ASA1,10,16 (c) A list and map of undeveloped parcels in the municipality that are zoned for residential development.

AB770-ASA1,10,20 (d) A list of all undeveloped parcels in the municipality that are suitable for, but not zoned for, residential development, including vacant sites and sites that have potential for redevelopment, and a description of the zoning requirements and availability of public facilities and services for each property.

AB770-ASA1,11,2 (e) An analysis of the municipality's residential development regulations, such as land use controls, site improvement requirements, fees and land dedication requirements, and permit procedures. The analysis shall calculate the financial impact that each regulation has on the cost of each new subdivision. The analysis shall identify ways in which the municipality can modify its construction and development regulations, lot sizes, approval processes, and related fees to do each of the following:

AB770-ASA1,11,3 1. Meet existing and forecasted housing demand.

AB770-ASA1,11,5 2. Reduce the time and cost necessary to approve and develop a new residential subdivision in the municipality by 20 percent.

AB770-ASA1,11,8 (3) A municipality shall post the report under sub. (2) on the municipality's Internet site on a web page dedicated solely to the report and titled “Housing Affordability Analysis.”

AB770-ASA1,21 Section 21 . 66.10014 of the statutes is created to read:

AB770-ASA1,11,11 66.10014 Development fee report. (1) In this section, “municipality” means a city or village with a population of 10,000 or more.

AB770-ASA1,11,13 (2) Not later than January 1, 2020, a municipality shall prepare a report of the municipality's development fees. The report shall contain all of the following:

AB770-ASA1,11,16 (a) Whether the municipality imposes any of the following fees or other requirements for purposes related to residential construction, remodeling, or development and, if so, the amount of each fee:

AB770-ASA1,11,17 1. Building permit fee.

AB770-ASA1,11,18 2. Impact fee.

AB770-ASA1,11,19 3. Park fee.

AB770-ASA1,11,20 4. Land dedication or fee in lieu of land dedication requirement.

AB770-ASA1,11,21 5. Plat approval fee.

AB770-ASA1,11,22 6. Storm water management fee.

AB770-ASA1,11,23 7. Water or sewer hook-up fee.

AB770-ASA1,12,3 (b) The total amount of fees under par. (a) that the municipality imposed for purposes related to residential construction, remodeling, or development in the prior year and an amount calculated by dividing the total amount of fees under this paragraph by the number of new residential dwelling units approved in the municipality in the prior year.

AB770-ASA1,12,9 (3) (a) A municipality shall post the report under sub. (2) on the municipality's Internet site on a web page dedicated solely to the report and titled “Development Fee Report.” If a municipality does not have an Internet site, the county in which the municipality is located shall post the information under this paragraph on its Internet site on a web page dedicated solely to development fee information for the municipality.

AB770-ASA1,12,11 (b) A municipality shall provide a copy of the report under sub. (2) to each member of the governing body of the municipality.

AB770-ASA1,12,13 (4) If a fee or the amount of a fee under sub. (2) (a) is not properly posted as required under sub. (3) (a), the municipality may not charge the fee.

AB770-ASA1,22 Section 22 . 66.10015 (1) (f) of the statutes is created to read:

AB770-ASA1,12,16 66.10015 (1) (f) “Zoning ordinance” means an ordinance enacted by a political subdivision under s. 59.69, 60.61, 60.62, 61.35, or 62.23.

AB770-ASA1,23 Section 23. 66.10015 (2) (d) of the statutes is repealed.

AB770-ASA1,24 Section 24. 66.10015 (5) of the statutes is created to read: