CORRECTED COPY
LRB-3255/1
ALL:amn
2023 - 2024 LEGISLATURE
May 17, 2023 - Printed by direction of Senate Chief Clerk.
AB245-engrossed,3,19
1An Act to repeal 49.45 (51), 60.85 (1) (f), 66.1105 (2) (d), 70.043, 70.11 (42), 70.47
2(15), 70.53 (1) (a), 71.07 (5n) (a) 5. d., 71.28 (5n) (a) 5. d., 76.07 (4g) (a) 11. and
312., 76.69, 79.01 (1), 79.01 (2d), 79.02 (3) (e) and 79.036 (2);
to renumber
466.0608 (title);
to renumber and amend 23.0917 (5t), 62.13 (2m) (title), 62.13
5(2m) (a), 62.13 (2m) (b), 66.0608 (2), 66.0608 (3), 66.0608 (4), 77.51 (12t), 77.70
6and 79.02 (3) (a);
to amend 8.06, 26.03 (1m) (b) (intro.), 33.01 (9) (a), 33.01 (9)
7(am) 1. and 2., 33.01 (9) (ar) 1., 33.01 (9) (b) 1., 40.02 (48) (b) 5., 40.21 (7) (b),
859.52 (25), 59.605 (3) (c), 59.875 (2) (a), 60.34 (1) (a), 60.85 (1) (h) 1. c., 60.85 (1)
9(o), 61.26 (2), 61.26 (3), 62.09 (9) (a), 62.09 (9) (e), 62.13 (1), 62.13 (2) (b), 62.50
10(1h), 62.50 (1m), 62.50 (3) (a), 62.50 (3) (am), 62.623 (1), 66.0435 (3) (c) 1. (intro.),
1166.0435 (3) (g), 66.0435 (9), 66.0602 (1) (am), 66.0602 (1) (d), 66.0602 (3) (a),
1266.0602 (3) (b), 66.0602 (3) (dm), 66.0602 (3) (ds), 66.0607 (1), 66.1105 (2) (f) 1.
13c., 66.1105 (2) (f) 2. e., 66.1105 (2) (i) 2., 66.1105 (6m) (c) 8., 66.1106 (1) (k), 70.02,
1470.04 (1r), 70.05 (5) (a) 1., 70.10, 70.119 (3) (c), 70.13 (1), 70.13 (2), 70.13 (3),
170.13 (7), 70.15 (2), 70.17 (1), 70.174, 70.18 (1), 70.18 (2), 70.19, 70.20, 70.21 (1),
270.21 (1m) (intro.), 70.21 (2), 70.22 (1), 70.22 (2) (a), 70.27 (1), 70.27 (3) (a), 70.27
3(4), 70.27 (5), 70.27 (7) (b), 70.29, 70.30 (intro.), 70.34, 70.345, 70.35 (1), 70.35
4(2), 70.35 (3), 70.35 (4), 70.35 (5), 70.36 (1), 70.36 (2), 70.43 (2), 70.44 (1), 70.47
5(7) (aa), 70.49 (2), 70.50, 70.52, 70.65 (2) (a) 2., 70.65 (2) (b) (intro.), 70.68 (1),
670.73 (1) (b), 70.73 (1) (c), 70.73 (1) (d), 70.84, 70.855 (1) (intro.), 70.855 (1) (a),
770.855 (1) (b), 70.995 (1) (a), 70.995 (4), 70.995 (5), 70.995 (7) (b), 70.995 (8) (b)
81., 70.995 (12) (a), 71.07 (5n) (a) 5. a., 71.07 (5n) (a) 9. (intro.), 71.07 (5n) (a) 9.
9a., 71.07 (5n) (d) 2., 71.07 (6e) (a) 5., 71.07 (9) (a) 3., 71.17 (2), 71.28 (5n) (a) 5.
10a., 71.28 (5n) (a) 9. (intro.), 71.28 (5n) (a) 9. a., 71.28 (5n) (d) 2., 71.52 (7), 73.01
11(5) (a), 76.02 (1), 76.03 (1), 76.07 (2), 76.07 (4g) (a) 10., 76.07 (4g) (a) 13., 76.125
12(1), 76.24 (2) (a), 76.31, 76.82, chapter 77 (title), 77.04 (1), 77.54 (20n) (d) 2.,
1377.54 (20n) (d) 3., 77.54 (57d) (b) 1., subchapter V (title) of chapter 77 [precedes
1477.70], 77.71, 77.73 (2), (2m) and (3), 77.75, 77.76 (1), 77.76 (2), 77.76 (3), 77.76
15(4), 77.77 (1) (a), 77.77 (1) (b), 77.77 (3), 77.78, 77.84 (1), 78.55 (1), 79.015, 79.02
16(2) (b), 79.035 (title), 79.035 (4) (c) 2., 79.035 (4) (d) 2., 79.035 (4) (e) 2., 79.035
17(4) (f) 2., 79.035 (4) (g), 79.035 (4) (h), 79.035 (4) (i), 79.035 (5), 79.035 (6), 79.035
18(8), 79.05 (2) (c), 79.05 (3) (d), 119.04 (1), 174.065 (3), 256.15 (4m) (d), 256.15 (8)
19(b) 3., 815.18 (3) (intro.) and 978.05 (6) (a);
to repeal and recreate 62.50 (3)
20(title), 79.035 (5) and 79.036 (1) (intro.);
to create 13.94 (1) (w), 13.94 (1) (x),
2113.94 (1) (y), 13.94 (1s) (c) 1m., 13.94 (1s) (c) 1s., 23.0917 (5t) (b), 25.17 (1) (jf),
2225.491, 59.875 (2) (c), 59.875 (4), 59.90, 60.85 (5) (j), 62.50 (1j), 62.623 (3),
2362.625, 62.90, 66.0144, 66.0145, 66.0441, 66.0602 (1) (cm), 66.0602 (1) (e),
2466.0602 (3) (dq), 66.0602 (3) (dv), 66.0608 (title), 66.0608 (1) (fm), 66.0608 (2m),
2566.1105 (4m) (b) 2m., 66.1105 (5) (j), 66.1106 (4) (e), 70.015, 70.111 (28), 70.17
1(3), 70.995 (5n), 71.07 (5n) (a) 9. c., 71.28 (5n) (a) 9. c., 73.03 (77), 76.025 (5),
276.074, 77.51 (12t) (a) to (c), 77.70 (2), 77.701, 77.76 (3r), 79.036, 79.037, 79.038,
379.039, 79.05 (4), 79.0965, 101.02 (7y), 111.70 (4) (mc) 7., 115.385 (1) (e), 115.385
4(1g) (g), 118.124, 252.03 (2j), 256.15 (1) (ij), 256.15 (4) (a) 4., 256.15 (8) (bm),
5256.15 (8) (fm), 256.15 (10m), 256.35 (3s) (bm) 5. and 706.05 (2m) (b) 3. of the
6statutes; and
to affect Laws of 1937, chapter 201, section 1 (4), Laws of
1937,
7chapter 201, section
14A, Laws of
1937, chapter 201, section
21, Laws of
1937,
8chapter 396, section
1 (3) (b), Laws of
1937, chapter 396, section
1 (4) (e) 2m.,
9Laws of 1937, chapter 396, section 15 (1) and Laws of
1937, chapter 396, section
1016A;
relating to: county and municipal aid; imposing a city and county sales
11tax to pay the unfunded liability of city and county retirement systems;
12requiring certain newly hired city and county employees to be enrolled in the
13Wisconsin Retirement System; fire and police commissions of first class cities;
14eliminating the personal property tax; reporting certain crimes and other
15incidents on school property or school transportation; advisory referenda; local
16health officers; local public protection services; local levy limits; local regulation
17of certain quarry operations; emergency services; local approval of projects and
18activities under the Warren Knowles-Gaylord Nelson Stewardship 2000
19Program; requiring a referendum; and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Engrossment information:
The text of Engrossed 2023 Assembly Bill 245, as passed by the assembly on
May 17, 2023, consists of the following documents adopted in the assembly on May
17, 2023: the bill as affected by Assembly Amendment 2 (as affected by chief clerk's
correction). The text includes the May 16, 2023, chief clerk's correction to Assembly
Bill 245.
Content of Engrossed 2023 Assembly Bill 245:
This bill modifies shared revenue programs, addresses the retirement systems
of the City of Milwaukee and Milwaukee County, eliminates the personal property
tax, and contains various other provisions described in further detail below.
Shared revenue
Under current law, each county and municipality annually receives county and
municipal aid payments. With certain exceptions, each county and municipality
receives a county and municipal aid payment equal to the amount of the payment the
county or municipality received in 2012. In addition, under current law, a
municipality is eligible to receive an annual expenditure restraint payment if its
property tax levy is greater than five mills and if the annual increase in its municipal
budget is less than the sum of factors based on inflation and the increased value of
property in the municipality as a result of new construction. Generally, the amount
appropriated for the expenditure restraint program has not changed since 2003. In
addition, current law provides state aid payments to counties and municipalities to
compensate for certain property tax exemptions and for public utilities located in the
county or municipality. Finally, current law provides state aid payments to
municipalities that provide municipal services to state facilities.
The bill creates a trust fund designated as the local government fund. In 2024,
counties and municipalities will receive a county and municipal aid payment equal
to the amount of the payment received by the county or municipality in 2012. In
subsequent years, a county or municipality will receive a county and municipal aid
payment equal to the amount credited to the county and municipal aid account of the
local government fund multiplied by the proportion of the total of county and
municipal aid payments that the county or municipality received in 2024.
Also, beginning in 2024, the bill provides supplemental aid to counties and to
cities, villages, and towns. The bill specifies separate formulas for distributing this
supplemental county and municipal aid in 2024 for counties and municipalities.
Under the bill, each municipality receives a supplemental county and municipal aid
payment equal to at least 15 percent of municipality's county and municipal aid
payment. In subsequent years, a county or municipality will receive a supplemental
county and municipal aid payment equal to the amount credited to the supplemental
county and municipal aid account of the local government fund multiplied by the
proportion of the total of supplemental county and municipal aid payments that the
county or municipality received in 2024. The supplemental county and municipal
aid may be used only for law enforcement, fire protection, emergency medical
services, emergency response communications, public works, and transportation.
Under the bill, grants received from the state or from the federal government
for the purpose of providing law enforcement, fire protection, and emergency medical
services are excluded from being considered in determining eligibility for an
expenditure restraint program payment. Under current law, a municipality is
eligible to receive an expenditure restraint program payment if its property tax levy
is greater than five mills and if the annual increase in its municipal budget, subject
to certain exceptions, is less than the sum of factors based on inflation and the
increased value of property in the municipality as a result of new construction.
The bill also creates a program to provide innovation grants to counties and
municipalities that apply for such grants. The innovation grants are awarded to
counties and municipalities that submit an innovation plan to transfer certain
county or municipal services to a county, municipality, nonprofit organization, or
private entity, and to be approved, a plan must realize a projected savings of at least
10 percent of the total cost of providing the service. The bill specifies that transfers
of the following services or duties are eligible for receiving an innovation grant:
public safety, fire protection, emergency services, courts, jails, training,
communications, information technology, administration, public works, economic
development, tourism, public health, housing, planning, zoning, parks, and
recreation. To be awarded a grant under the bill, a county or municipality must enter
into an agreement or contract to transfer services or duties to a county, municipality,
nonprofit organization, or private entity, and the agreement or contract must 1)
specify the services or duties to be transferred; 2) transfer those services or duties
for a minimum period of time specified in the bill; 3) indicate the cost of performing
those services or duties in the year immediately preceding the transfer; and 4) specify
the cost of performing those services or duties for the entire term of the agreement
or contract. Innovation grant payments may be made beginning in the fiscal year
after the Department of Revenue promulgates rules to administer the program and
the two following fiscal years. DOR must annually submit a report to the Joint
Committee on Finance concerning all grants awarded and must audit 10 percent of
the grants awarded. Municipalities with a population of 5,000 or less may apply for
a separate innovation planning grant to use only for staffing and consultant
expenses for planning the transfer of local government services.
The bill also makes the following changes regarding payments to local
governments:
1. Requires the Department of Administration to make aid payments to taxing
jurisdictions to compensate them for the loss of property tax revenue due to the
repeal of the remaining personal property tax, discussed in further detail below.
Under current law, DOA makes payments to taxing jurisdictions for certain personal
property that is exempt from local property taxes to compensate them for the
corresponding loss of property tax revenue.
2. Eliminates grants made to local government units through the Medical
Assistance program for providing transportation for medical care.
Milwaukee city and county retirement systems
The bill authorizes a first class city and a county in which a first class city is
located to impose sales and use taxes, the revenue from which must be used to pay
the unfunded actuarial accrued liability of the city and county retirement systems
and to increase public safety services. The bill also requires newly hired employees
of a city, city agency, or county, including former employees who were not active
employees of a city, city agency, or county on December 31 of the year the city or
county adopts a special sales tax, if the city or county imposes the taxes, to be enrolled
in the Wisconsin Retirement System, closes the Employes' Retirement System of the
City of Milwaukee and the Milwaukee County Employes' Retirement System to new
employees, prohibits the city or county from creating a new retirement system, and
prohibits the city or county from enhancing or increasing the benefits of employees
who remain enrolled in the two systems except as required to comply with federal
law, or collectively bargaining over the terms of the city or county retirement systems
for public safety employees who remain enrolled in the two systems.
The bill also makes several changes to the statutes governing the fire and police
commission (FPC) of a first class city, presently only the City of Milwaukee.
Sales and use tax
Under current law, a county may impose a sales and use tax at the rate of 0.5
percent of the sales price of tangible personal property, goods, and services sold or
used in the county. The tax may be imposed only for the purpose of reducing the
property tax levy.
Under the bill, a county in which a first class city is located (currently,
Milwaukee County) may impose an additional sales and use tax at a rate not
exceeding 0.375 percent of the sales price of tangible personal property, goods, and
services sold or used in the county. Under the bill, DOR keeps 1.75 percent of the
revenue from the additional tax for administrative expenses. The bill requires that
the remaining revenue be used to pay the unfunded actuarial accrued liability of the
county's retirement system and for public safety services. Under the bill, the tax does
not take effect unless it is approved by the voters in the county at a referendum and
the county chooses to join the WRS for all its new employees.
The bill also allows a first class city to impose a sales and use tax at a rate not
exceeding 2.0 percent of the sales price of tangible personal property, goods, and
services sold or used in the city. Under the bill, DOR keeps 1.75 percent of the
revenue from the additional tax for administrative expenses. The bill requires that
the remaining revenue be used to pay the unfunded actuarial accrued liability of the
city's retirement system and for public safety services. Similar to the tax imposed
by the county, the tax imposed by the city does not take effect unless it is approved
by the voters in the city at a referendum and the city chooses to join the WRS for all
its new employees.
The bill also requires the county and city to annually submit a report to JCF
detailing how the tax revenues were spent in the previous year. In addition, the bill
requires the Legislative Audit Bureau to conduct a financial audit of the taxes
imposed by the county and city once every five years, to annually conduct a financial
audit of the retirement systems of the county and city, and to, at least every five
years, contract to audit the actuarial performance of those retirement systems.
Under the bill, if in any year the county or city does not make the required
contribution to the unfunded actuarial accrued liability of its respective retirement
system, DOR will reduce the amount of the county's or city's shared revenue payment
by the amount of the unpaid contribution and pay that amount towards the unfunded
actuarial accrued liability. Also, if in any year the county or city uses the sales tax
revenue for a purpose not authorized under the bill, DOR will reduce the shared
revenue payment to the county or city, as appropriate, by the amount of the
unauthorized expenditure.
Under the bill, the sales tax is no longer imposed after the county or city has
paid in full the unfunded actuarial accrued liability of its respective retirement
system.
Under current law, Milwaukee County and the City of Milwaukee each operate
their own retirement systems, providing retirement benefits to individuals
employed by the county or city. The bill requires that employees initially hired by
Milwaukee County or the City of Milwaukee after December 31 in the year the
county adopts an ordinance to impose a 1 percent sales and use tax and elects to join
the WRS are covered under the WRS and not the county's or city's retirement system.
Provisions applicable to city of Milwaukee and Milwaukee County
In addition, the bill provides certain requirements or limitations for a city or
county that is authorized to impose the sales tax under the bill. Among these
requirements and limitations that apply to a first class city are:
1. The total amount of spending for cultural or entertainment matters or
involving partnerships with nonprofit groups is limited to not more than 5 percent
of the total city budget.
2. Net new program spending or position authorizations may occur only upon
a two-thirds vote of all of the members of the common council.
3. The city may not use moneys raised by levying taxes for funding any position
for which the principal duties consist of promoting individuals on the basis of their
race, color, ancestry, national origin, or sexual orientation.
4. The city may not use moneys raised by levying taxes for developing,
operating, or maintaining a rail fixed guideway transportation system (street car).
5. The city must maintain the level of law enforcement and fire department
staffing at at least the current level.
6. The school board of the school district that is located in the first class city
must ensure that 25 school resource officers are present at schools in the school
district during school hours and as needed during other school-related activities,
and that, beginning in the 2025-26 school year, the school board must consider the
statistics required to be collected on violations of municipal disorderly conduct
ordinances and certain crimes, as further described below, to allocate the school
resource officers to specific schools in the school district.
7. Under current law, project costs for a tax incremental district (TID) in the
city of Milwaukee may not include direct or indirect expenses related to operating
a street car in the city of Milwaukee. The bill also excludes expenses relating to
developing or constructing a street car from inclusion as project costs in a TID in the
city of Milwaukee, with the exception of development and construction costs for a
project referred to as the Lakefront Line.
8. Current law authorizes the FPC of a first class city to prescribe general
policies and standards for the police and fire departments and to prescribe rules for
the government of the members of the departments. Also under current law, an FPC
of a first class city consists of seven or nine members selected by the mayor. The bill
requires that of those members at least one is selected from a list provided by the
employee association that represents nonsupervisory law enforcement officers and
the employee association that represents fire fighters. Individuals included in these
lists must be residents of the city, must have professional law enforcement
experience or professional fire fighting experience, respectively, and must be five
years removed from experience as a professional law enforcement officer or fire
fighter, respectively. The bill also transfers authority for the control and
management of the police and fire departments from the FPC to the chief of each
department. Policies established for the control and management of the
departments may be modified or suspended by a two-thirds vote of the common
council.
Among the requirements and limitations that apply to a county in which a first
class city is located are:
1. The total amount of spending for cultural or entertainment matters or
involving partnerships with nonprofit groups is limited to not more than 5 percent
of the total county budget.
2. Net new program spending or position authorizations may occur only upon
a two-thirds vote of all of the members of the county board.
Elimination of the personal property tax
Under current law, beginning with the property tax assessments as of January
1, 2018, machinery, tools, and patterns, not including those items used in
manufacturing, are exempt from the personal property tax. However, beginning in
2019, the state pays each taxing jurisdiction an amount equal to the property taxes
levied on those items of personal property for the property tax assessments as of
January 1, 2017.
Under the bill, beginning with the property tax assessments as of January 1,
2024, no items of personal property will be subject to the property tax.
Under current law, generally, public utilities, including railroad companies, are
subject to a property tax imposed by the state instead of being subject to local
property taxes. This bill creates a personal property tax exemption to the property
tax for railroad companies in order to comply with the requirements of the federal
Railroad Revitalization and Regulatory Reform Act.
The bill also makes a number of technical changes related to the repeal of the
personal property tax, such as providing a process whereby manufacturing
establishments located in this state that do not own real property in this state may
continue to claim the manufacturing income tax credit.
Other provisions
Prohibition of certain discrimination and preferences
The bill prohibits a political subdivision, which means a county, city, village, or
town, from discriminating against or providing a preference in hiring or contracting
based on race, color, ancestry, national origin, or sexual orientation unless it is
required to receive federal aid.
Collection of certain data related to criminal or ordinance violations
occurring on school property
Beginning in the 2024-25 school year, the bill requires public high schools and
private high schools participating in a parental choice program to collect statistics
on violations of municipal disorderly conduct ordinances and certain crimes,
including homicide, sexual assault, burglary, battery, and arson, that occur on school
property or on transportation provided by the school. The high school must collect
statistics about the crime or disorderly conduct only if 1) it occurred on a weekday
between the hours of 6 a.m. and 10 p.m.; 2) it is reported to law enforcement; and 3)
a charge is filed or citation is issued. The bill further requires that the collected
statistics be reported to the Department of Public Instruction and included on the
annual school and school district accountability report. In addition, the bill clarifies
that DPI may not consider crimes statistics reported by a school or school district for
purposes of determining a school or school district's performance on the annual
school and school district accountability report.
Maintenance of effort for protective services
The bill requires cities, villages, and towns with populations of 20,000 or more
to certify to DOR that the city, village, or town is maintaining a level of law
enforcement. The bill also requires political subdivisions to certify that the political
subdivision is maintaining a level of fire and emergency medical services that is at
least equivalent to that provided in the previous year. County and municipal aid to
political subdivisions that do not satisfy the maintenance of effort requirement are
reduced by 15 percent.
Advisory referenda
The bill prohibits a county or municipality from holding an advisory
referendum except for certain referenda related to capital expenditures.