AB480: Bill Text

August 24, 2017 - Introduced by Representatives Jarchow, Allen, R. Brooks, Felzkowski, Gannon, Horlacher, Hutton, Kremer, Krug, Quinn, Stafsholt and Tusler, cosponsored by Senators Tiffany, Darling, Lasee and Nass. Referred to Committee on Housing and Real Estate.

AB480,2,13 An Act to repeal 227.115 (5); to renumber and amend 66.1105 (2) (ab) and 227.115 (2); to amend 13.099 (2), 13.099 (3) (title), 13.099 (3) (a) (intro.), 13.099 (3) (a) 2., 13.099 (3) (a) 3., 13.099 (3) (b), 16.848 (2) (f), 20.002 (2) (a), 20.835 (3) (title), 25.29 (1) (a), 25.29 (7) (intro.), 25.29 (7) (a), 25.29 (7) (b), 30.12 (3) (a) 3g., 30.12 (3) (a) 3r., 41.41 (10) (b), 41.41 (10) (c) 1., 66.0617 (7), 66.10015 (2) (b), 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., 70.57 (4) (b) 1., 70.57 (4) (b) 2., 70.58 (1), 70.58 (2), 227.115 (2) (title), 227.115 (3) (title), 227.115 (3) (a) (intro.), 227.115 (3) (a) 2., 227.115 (3) (a) 3., 227.115 (3) (b), 227.15 (1) and 706.05 (2m) (b) 1.; to repeal and recreate 227.115 (1) and 227.19 (3) (g); and to create 13.099 (3) (a) 6., 13.099 (3) (c), 13.099 (3) (d), 20.835 (3) (ef), 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., 70.58 (3), 101.63 (5m), 227.115 (2) (b), 227.115 (3) (a) 6., 227.115 (3) (c), 227.115 (3) (d), 348.16 (3) (d) and 349.16 (3) (d) of the statutes; relating to: review by the Department of Safety and Professional Services of the state electrical wiring code applicable to one-family and two-family dwellings; the legal description required for recording an easement for the construction, operation, or maintenance of sewer lines or facilities; expanding the use of tax incremental financing for workforce housing development and allowing a reduction in the amount of certain impact fees; effect of changes in requirements for development-related permits or authorizations on persons who apply for the permits or authorizations; exempting certain vehicles delivering propane from class B highway weight limitations and certain special or seasonal weight limitations; elimination of the forestation state property tax; reviews of and reports on bills and proposed administrative rules that affect housing; general permits to place riprap on the bed of a navigable water; and making an appropriation.

Analysis by the Legislative Reference Bureau

introduction

This bill makes various changes relating to the following:

1. Review by the Department of Safety and Professional Services of the state electrical wiring code applicable to one-family and two-family dwellings.

2. The legal description required for recording an easement for the construction, operation, or maintenance of sewer lines or facilities.

3. Expanding the use of tax incremental financing for workforce housing development and requiring a reduction in the amount of certain impact fees.

4. The effect of changes in requirements for development-related permits or authorizations on persons who apply for the permits or authorizations.

5. Exempting certain vehicles delivering propane from class B highway weight limitations and certain special or seasonal weight limitations.

6. Eliminating the forestation state property tax.

7. Reviews of and reports on bills and proposed administrative rules that affect housing.

8. General permits to place riprap on the bed of a navigable water.

review of state electrical wiring code

This bill requires the Department of Safety and Professional Services to review, once every six years, those portions of the state electrical wiring code that apply to one-family and two-family dwellings. In reviewing the code, DSPS must consult with the Uniform Dwelling Code Council and any council or committee created by the secretary of DSPS to advise DSPS regarding the code.

formal requisites for recording sewer easements

This bill provides that a document that is recorded in the real estate records does not need to contain a full legal description of an easement for the construction, operation, or maintenance of sewer lines or facilities. Under current law, with certain exceptions, a document that affects title to land in this state that is recorded in the real estate records must contain a full legal description of the property affected by the document. One exception provides that a full legal description is not required for a description of an easement for the construction, operation, or maintenance of electric, gas, railroad, water, telecommunications, or telephone lines or facilities. The bill adds sewers to the types of easements that are not required to have a full legal description.

tax incremental financing, impact fees

This bill authorizes the creation of workforce housing development tax incremental districts and changes the method of imposing certain impact fees.

Under the current tax incremental financing program, a city or village may create a TID in part of its territory to foster development under certain conditions. Currently, towns and counties also have a limited ability to create a TID under certain limited circumstances. Before a city or village may create a TID, several steps and plans are required. These steps and plans include public hearings on the proposed TID within specified time frames, preparation and adoption by the local planning commission of a proposed project plan for the TID, approval of the proposed project plan by the common council or village board, approval of the city's or village's proposed TID by a joint review board (JRB) that consists of members who represent the overlying taxation districts, and adoption of a resolution by the common council or village board that creates the TID as of a date provided in the resolution.

Also under current law, once a TID has been created, the Department of Revenue calculates the “tax incremental base" value of the TID, which is the equalized value of all taxable property within the TID at the time of its creation. If the development in the TID increases the value of the property in the TID above the base value, a “value increment" is created. That portion of taxes collected on the value increment in excess of the base value is called a “tax increment." The tax increment is placed in a special fund that may be used only to pay back the project costs of the TID.

The project costs of a TID, which are initially incurred by the creating city or village, include public works such as sewers, streets, and lighting systems; financing costs; site preparation costs; and professional service costs. DOR authorizes the allocation of the tax increments until the TID terminates or, generally, 20 years, 23 years, or 27 years after the TID is created, depending on the type of TID and the year in which it was created. Also under current law, a city or village may not generally make expenditures for project costs later than five years before the unextended termination date of the TID. Under certain circumstances, the life of the TID, the expenditure period, and the allocation period may be extended. A TID is required to terminate, under current law and with some exceptions, once its project costs are paid back.

Generally under current law, project costs may be expended to benefit residential development but only certain TIDs for which a project plan was approved before September 30, 1995, or for a mix-use development. With regard to a mixed-use development, lands proposed for newly platted residential use may not exceed 35 percent, by area, of real property within the TID.

Under the bill, a workforce housing TID may contain only newly platted residential uses, 100 percent of which must be workforce housing. Before such a TID may be created, the JRB must approve the TID by a unanimous vote. For other TIDs, only a majority vote is required. A workforce housing TID has a maximum life of 15 years, and DOR may allocate tax increments for only 15 years.

Also under the bill, workforce housing is defined to mean housing based on the following two factors, which are subject to the five year average median costs as determined by the U.S. bureau of census:

1. Housing that costs no more than 30 percent of the household's gross median income.

2. The construction cost per housing unit, including rental housing, is no more than 80 percent of the median price for new residential construction in the county.

Under current law, if a city, village, or town imposes an impact fee on a developer to pay for certain capital costs that are necessary to accommodate land development, the ordinance may provide for an exemption from, or a reduction in the amount of, impact fees on land development that provides low-cost housing. Under this bill, the impact fee exemption or reduction provisions also apply to workforce housing. Current law prevents the shifting of an exemption from or reduction in impact fees to any other development in the land development in which the low-cost housing is located. The bill applies this provision to workforce housing as well.

development regulation

Under current law, if a project requires more than one approval or approvals from more than one political subdivision and the applicant identifies the full scope of the project at the time of filing the application for the first approval required for the project, the existing requirements applicable in each political subdivision at the time of filing are applicable to all subsequent approvals required for the project.

Under this bill, for any project that requires an approval, if the applicant identifies the full scope of the project at the time of filing the application for the first approval required for the project, the existing requirements applicable in each political subdivision from which a subsequent approval is necessary at the time of filing are applicable to all subsequent approvals required for the project.

propane transport

Under current law, in general, no person may operate on a highway any vehicle or combination of vehicles that exceeds certain statutory weight limits unless that person obtains a permit issued by the Department of Transportation or a local highway authority. Among the weight limitations are, generally, limitations on the gross weight imposed on the highway by the wheels of any one axle or by consecutive axles of the vehicle. In general, the maximum weight that may be imposed on the highway by one axle is 20,000 pounds and the maximum weight that may be imposed on the highway by two axles is 35,000 pounds if the axles are eight feet apart and 34,000 pounds if the axles are less than eight feet apart.

Also under current law, local highway authorities may impose special or seasonal weight limitations on highways that, because of deterioration or climatic conditions, would likely be seriously damaged or destroyed if limitations were not imposed. For vehicles carrying certain commodities or being used to perform certain services, local highway authorities may set different weight limitations or exempt the vehicles from the special or seasonal weight limitations if an exemption or limitation is in the interest of public health, safety, and welfare.

Local authorities may also designate highways under their jurisdiction as class “B” highways. With limited exceptions, the maximum gross weight and per-axle vehicle weight for vehicles on a class “B” highway is 60 percent of the weight allowed by statute if the vehicles were operating on a highway that is not designated as a class “B” highway.

This bill provides that special or seasonal weight limitations imposed by a highway authority and class “B” highway weight limitations do not apply to a motor vehicle that is being operated to deliver propane for heating purposes if the gross weight imposed on the highway by the vehicle does not exceed 30,000 pounds, for a vehicle with a single rear axle, or 40,000 pounds, for a vehicle with tandem rear axles, and, if the motor vehicle is a tank vehicle, the tank is loaded to no more than 50 percent of the capacity of the tank. The bill provides that a tank vehicle must be equipped with a gauge on the tank that shows the amount of propane in the tank as a percent of capacity of the tank and must carry documentation of the capacity of the tank either on the cargo tank or in the cab of the vehicle.

forestation state property tax

This bill eliminates the forestation state property tax. Proceeds from the tax are paid into the conservation fund and used to acquire, preserve, and develop the forests of the state. The tax rate is 0.1697 mills for each dollar of the assessed value of the property of the state as determined by the Department of Revenue. The bill provides that in each fiscal year an amount equal to 0.1697 mills for each dollar of the assessed value of the property of the state is transferred from the general fund to the conservation fund to be used for the same purpose as the tax.

reports on bills and rules affecting housing

Current law requires the Department of Administration to prepare a report on any bill or any proposed administrative rule that directly or substantially affects the development, construction, cost, or availability of housing in this state. A report for a bill must be completed within 30 days after the bill affecting housing is introduced, and a report for a proposed rule must be completed within 30 days after the rule is submitted to DOA and must be completed before the rule is submitted to the Legislative Council Staff for review. A report on either a bill or a proposed rule that affects housing must include information on the effect of the bill or proposed rule on the state housing strategy plan, the cost of constructing, rehabilitating, improving, or maintaining housing, the cost and availability of financing to purchase or develop housing, the purchase price of housing, and other housing costs such as rent, utilities and property taxes.

This bill does all of the following with respect to reports on bills or rules affecting housing:

1. Retitles such a report a “housing impact analysis.”

2. Requires a housing impact analysis for any bill or proposed rule that may increase or decrease, either directly or indirectly, the cost of the development, construction, financing, purchasing, sale, ownership, or availability of housing in this state.

3. Makes various changes to the information and analysis that is required to be included in a housing impact analysis and specifies how that information is expressed in the report.

4. With respect to a housing impact analysis for a proposed rule, requires the agency proposing the rule, rather than DOA, to prepare the housing impact analysis. The bill also requires that a housing impact analysis be included in an agency's submission to the Legislative Council Staff during the rule-making process and that an agency prepare a revised housing impact analysis if the housing impact of the rule is significantly changed.

riprap general permits

Current law requires a Department of Natural Resources permit in order to deposit any material or place any structure upon the bed of any navigable water where no bulkhead line has been established or beyond a lawfully established bulkhead line. Under current law, DNR must issue general permits allowing riparian owners to place riprap on the bed or bank of a navigable water adjacent to the owner's property in an amount up to and including 100 continuous feet in an inland lake of 300 acres or more and up to and including 300 continuous feet in a Great Lakes water body. This bill increases the amount of riprap that may be placed in an inland lake of 300 acres or more to 200 continuous feet. The bill also adds that these general permits must allow a riparian owner to place riprap in a location extending landward to the top of the bank or four feet above the ordinary high water mark, whichever is lower.

Because this bill concerns an exception to the vehicle weight limits specified in ch. 348, stats., the Department of Transportation, as required by law, will prepare a report to 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:

AB480,1 Section 1. 13.099 (2) of the statutes is amended to read:

AB480,7,9 13.099 (2) Report on Analysis of bills affecting housing. (a) If any bill that is introduced in either house of the legislature directly or substantially affects may increase or decrease, either directly or indirectly, the cost of the development, construction, cost, financing, purchasing, sale, ownership, or availability of housing in this state, the department shall prepare a report on housing impact analysis for the bill within 30 days after it is introduced. The department may request any information from other state agencies, local governments, or individuals, or organizations that is reasonably necessary for the department to prepare the report analysis.

AB480,7,14 (b) A bill that requires a report by the department housing impact analysis under this section shall have that requirement noted on its jacket when the jacket is prepared. When a bill that requires a report housing impact analysis under this section is introduced, the legislative reference bureau shall submit a copy of the bill to the department.

AB480,7,17 (c) The report A housing impact analysis prepared under this section shall be printed as an appendix to that applicable bill and shall be distributed in the same manner as amendments.

AB480,2 Section 2. 13.099 (3) (title) of the statutes is amended to read:

AB480,7,20 13.099 (3) (title) Findings of the department to be contained in the report housing impact analysis.

AB480,3 Section 3. 13.099 (3) (a) (intro.) of the statutes is amended to read:

AB480,7,24 13.099 (3) (a) (intro.) The report of the department A housing impact analysis shall contain information about the effect of the bill on housing in this state, including information on the effect of the bill on all of the following:

AB480,4 Section 4. 13.099 (3) (a) 2. of the statutes is amended to read:

AB480,8,2 13.099 (3) (a) 2. The cost of developing, constructing, rehabilitating, improving or, maintaining single family, or owning single-family or multifamily dwellings.

AB480,5 Section 5. 13.099 (3) (a) 3. of the statutes is amended to read:

AB480,8,5 13.099 (3) (a) 3. The purchase price of housing new homes or the fair market value of existing homes.

AB480,6 Section 6. 13.099 (3) (a) 6. of the statutes is created to read:

AB480,8,8 13.099 (3) (a) 6. The density, location, setback, size, or height of development on a lot, parcel, land division, or subdivision.

AB480,7 Section 7. 13.099 (3) (b) of the statutes is amended to read:

AB480,8,11 13.099 (3) (b) The report A housing impact analysis shall analyze the relative impact of the effects of the bill on low- and moderate-income households.

AB480,8 Section 8. 13.099 (3) (c) of the statutes is created to read:

AB480,8,17 13.099 (3) (c) 1. Except as provided in subd. 2., a housing impact analysis shall provide reasonable estimates of the information under pars. (a) and (b) expressed as dollar figures and shall include descriptions of the immediate effect and, if ascertainable, the long-term effect. The department shall include a brief summary or worksheet of computations used in determining any such dollar figures.

AB480,8,21 2. If, after careful consideration, the department determines that it is not possible to make an estimate expressed as dollar figures as provided in subd. 1., the analysis shall instead contain a statement to that effect setting forth the reasons for that determination.

AB480,9 Section 9. 13.099 (3) (d) of the statutes is created to read:

AB480,9,2 13.099 (3) (d) Except as otherwise specified in par. (a), a housing impact analysis shall be prepared on the basis of a median-priced single-family residence but may include estimates for larger developments as an analysis of the long-term effect of the bill.

AB480,10 Section 10. 16.848 (2) (f) of the statutes is amended to read:

AB480,9,5 16.848 (2) (f) Subsection (1) does not apply to lands acquired with revenues collected paid into the conservation fund under s. 70.58.

AB480,11 Section 11. 20.002 (2) (a) of the statutes is amended to read:

AB480,9,20 20.002 (2) (a) Solely for purposes of relating annual taxes to estimated expenses, amounts withheld under s. 71.64 prior to July 1 and taxes imposed by subch. III of ch. 77 for periods ending prior to July 1 shall be deemed accrued tax receipts as of the close of the fiscal year but no revenue shall be deemed accrued tax receipts unless deposited by the state on or before the August 15 following the end of the fiscal year. Solely for purposes of relating annual taxes to estimated expenses, fees imposed under subch. II of ch. 77, taxes imposed under ss. 139.02, 139.03 (2m) and (2n), 139.31 and 139.76 and assessments imposed under s. 50.14 (2) shall be deemed accrued tax receipts as of the close of the fiscal year, but no revenue shall be deemed accrued tax receipts unless deposited by this state on or before July 31. Solely for purposes of relating annual taxes to estimated expenses, taxes imposed under s. 70.58 shall be deemed accrued tax receipts as of the close of the fiscal year, but no revenue shall be deemed accrued tax receipts unless it is deposited by this state on or before August 31.

AB480,12 Section 12. 20.835 (3) (title) of the statutes is amended to read:

AB480,9,22 20.835 (3) (title) State property tax credits relief .

AB480,13 Section 13. 20.835 (3) (ef) of the statutes is created to read:

AB480,9,25 20.835 (3) (ef) Transfer to conservation fund; forestry. A sum sufficient in an amount equal to the amount to be paid into the conservation fund as determined under s. 70.58 (3) for the forestry purposes described under s. 70.58 (1). The amounts may be paid at such intervals during each fiscal year as the secretary of administration considers appropriate or necessary.

AB480,14 Section 14. 25.29 (1) (a) of the statutes is amended to read:

AB480,10,10 25.29 (1) (a) Except as provided in ss. 25.293 and 25.295, all moneys accruing to the state for or in behalf of the department under chs. 26, 27, 28, 29, 169, and 350, subchs. I and VI of ch. 77 and ss. 23.09 to 23.31, 23.325, 23.33, 23.335, except as provided in s. 25.40 (1) (bt), 23.35 to 23.42, 23.50 to 23.99, 30.50 to 30.55, 70.58, 71.10 (5), 71.30 (10), and 90.21, including grants received from the federal government or any of its agencies except as otherwise provided by law.

AB480,15 Section 15. 25.29 (7) (intro.) of the statutes is amended to read:

AB480,10,22 25.29 (7) (intro.) All of the proceeds of the tax which is levied moneys received under s. 70.58, and all moneys paid into the state treasury as the counties' share of compensation of emergency fire wardens under s. 26.14 shall be used for acquiring, preserving and developing the forests of the state, including the acquisition of lands owned by counties by virtue of any tax deed and of other lands suitable for state forests, and for the development of lands so acquired and the conduct of forestry thereon, including the growing and planting of trees; for forest and marsh fire prevention and control; for grants to forestry cooperatives under s. 36.56; for compensation of emergency fire wardens; for maintenance, permanent property and forestry improvements; for other forestry purposes authorized by law and for the payment of aid for forests as authorized in s. 28.11 and subchs. I and VI of ch. 77.

AB480,16 Section 16. 25.29 (7) (a) of the statutes is amended to read:

AB480,11,5 25.29 (7) (a) Eight percent of the tax levied moneys received under s. 70.58 or of the funds provided for in lieu of the levy shall be used to acquire and develop forests of the state for the purposes or capable of providing the benefits described under s. 28.04 (2) within areas approved by the department and the governor and located within the region composed of Manitowoc, Calumet, Winnebago, Sheboygan, Fond du Lac, Ozaukee, Washington, Dodge, Milwaukee, Waukesha, Jefferson, Racine, Kenosha, Walworth, Rock, and Outagamie counties.