SENATE SUBSTITUTE AMENDMENT 1,
TO 1999 SENATE BILL 442
March 29, 2000 - Offered by Joint committee on Finance.
SB442-SSA1,2,2 1An Act to renumber 66.04 (1) and 66.066 (5); to amend 13.94 (4) (a) 1., 16.70
2(14), 19.42 (13) (a), 25.50 (1) (d), 32.02 (11), 32.05 (intro.), 32.05 (1) (a), 32.07 (2),
340.02 (28), 40.02 (36), 66.04 (2) (a) (intro.), 66.066 (1) (a), 66.067, 66.30 (1) (a),
471.26 (1) (bm), 71.26 (1m) (g), 71.36 (1m), 71.45 (1t) (g), 111.02 (7), 111.70 (1) (j)
5and 230.03 (3); to repeal and recreate 40.02 (28); and to create 24.61 (2) (a)
69., 25.17 (3) (b) 12., 66.04 (1a), 66.04 (2) (a) 3t., 66.066 (5) (c), 70.11 (40), 71.05
7(1) (c) 6., 77.54 (9a) (h), 219.09 (1) (f) and subchapter V of chapter 229 [precedes
8229.840] of the statutes; relating to: authorizing the creation of a local cultural
9arts district; granting a property tax exemption for the district's property;
10granting a sales tax and use tax exemption for tangible personal property and
11services purchased by the district; giving a local cultural arts district the
12authority to issue bonds and granting income tax exemptions for interest

1income on bonds issued by the district; and authorizing certain local cultural
2arts districts to acquire property by condemnation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB442-SSA1, s. 1 3Section 1. 13.94 (4) (a) 1. of the statutes, as affected by 1999 Wisconsin Act 9,
4is amended to read:
SB442-SSA1,2,175 13.94 (4) (a) 1. Every state department, board, examining board, affiliated
6credentialing board, commission, independent agency, council or office in the
7executive branch of state government; all bodies created by the legislature in the
8legislative or judicial branch of state government; any public body corporate and
9politic created by the legislature including specifically a professional baseball park
10district, a local cultural arts district and a family care district under s. 46.2895; every
11Wisconsin works agency under subch. III of ch. 49; every provider of medical
12assistance under subch. IV of ch. 49; technical college district boards; development
13zones designated under s. 560.71; every county department under s. 51.42 or 51.437;
14every nonprofit corporation or cooperative to which moneys are specifically
15appropriated by state law; and every corporation, institution, association or other
16organization which receives more than 50% of its annual budget from appropriations
17made by state law, including subgrantee or subcontractor recipients of such funds.
SB442-SSA1, s. 2 18Section 2. 16.70 (14) of the statutes is amended to read:
SB442-SSA1,2,2019 16.70 (14) "State" does not include a district created under subch. II or, III or
20V
of ch. 229.
SB442-SSA1, s. 3 21Section 3. 19.42 (13) (a) of the statutes is amended to read:
SB442-SSA1,3,422 19.42 (13) (a) All positions to which individuals are regularly appointed by the
23governor, except the position of trustee of any private higher educational institution

1receiving state appropriations and the position of member of the district board of a
2local professional baseball park district created under subch. III of ch. 229 and the
3position of member of the district board of a local cultural arts district created under
4subch. V of ch. 229
.
SB442-SSA1, s. 4 5Section 4. 24.61 (2) (a) 9. of the statutes is created to read:
SB442-SSA1,3,76 24.61 (2) (a) 9. Bonds issued by a local cultural arts district under subch. V of
7ch. 229.
SB442-SSA1, s. 5 8Section 5. 25.17 (3) (b) 12. of the statutes is created to read:
SB442-SSA1,3,109 25.17 (3) (b) 12. Bonds issued by a local cultural arts district under subch. V
10of ch. 229.
SB442-SSA1, s. 6 11Section 6. 25.50 (1) (d) of the statutes, as affected by 1999 Wisconsin Act 9, is
12amended to read:
SB442-SSA1,3,2113 25.50 (1) (d) "Local government" means any county, town, village, city, power
14district, sewerage district, drainage district, town sanitary district, public inland
15lake protection and rehabilitation district, local professional baseball park district
16created under subch. III of ch. 229, family care district under s. 46.2895, local
17cultural arts district created under subch. V of ch. 229,
public library system, school
18district or technical college district in this state, any commission, committee, board
19or officer of any governmental subdivision of this state, any court of this state, other
20than the court of appeals or the supreme court, or any authority created under s.
21231.02, 233.02 or 234.02.
SB442-SSA1, s. 7 22Section 7. 32.02 (11) of the statutes is amended to read:
SB442-SSA1,4,223 32.02 (11) Any housing authority created under ss. 66.40 to 66.404,;
24redevelopment authority created under s. 66.431,; community development
25authority created under s. 66.4325; local cultural arts district created under subch.

1V of ch. 229, subject to s. 229.844 (4) (c);
or local exposition district created under
2subch. II of ch. 229.
SB442-SSA1, s. 8 3Section 8. 32.05 (intro.) of the statutes is amended to read:
SB442-SSA1,4,25 432.05 Condemnation for sewers and transportation facilities. (intro.)
5In this section, "mass transit facility" includes, without limitation because of
6enumeration, exclusive or preferential bus lanes if those lanes are limited to
7abandoned railroad rights-of-way or existing expressways constructed before
8May 17, 1978, highway control devices, bus passenger loading areas and terminal
9facilities, including shelters, and fringe and corridor parking facilities to serve bus
10and other public mass transportation passengers, together with the acquisition,
11construction, reconstruction and maintenance of lands and facilities for the
12development, improvement and use of public mass transportation systems for the
13transportation of passengers. This section does not apply to town highways created
14or altered under ch. 80 except as to jury trials on appeals under ss. 80.24 and 80.25,
15nor to proceedings in 1st class cities under subch. II. In any city, condemnation for
16housing under ss. 66.40 to 66.404, or for urban renewal under s. 66.431, or for
17cultural arts facilities under subch. V of ch. 229,
may proceed under this section or
18under s. 32.06 at the option of the condemning authority. Condemnation by a local
19exposition district under subch. II of ch. 229 for any exposition center or exposition
20center facility may proceed under this section or under s. 32.06 at the option of the
21local exposition district. All other condemnation of property for public alleys, streets,
22highways, airports, mass transit facilities, or other transportation facilities, gas or
23leachate extraction systems to remedy environmental pollution from a solid waste
24disposal facility, storm sewers and sanitary sewers, watercourses or water
25transmission and distribution facilities shall proceed as follows:
SB442-SSA1, s. 9
1Section 9. 32.05 (1) (a) of the statutes is amended to read:
SB442-SSA1,5,212 32.05 (1) (a) Except as provided under par. (b), the county board of supervisors
3or the county highway committee when so authorized by the county board of
4supervisors, city council, village board, town board, sewerage commission governing
5metropolitan sewerage district created by ss. 66.22 or 66.88 to 66.918, secretary of
6transportation, a commission created by contract under s. 66.30, a joint local water
7authority created by contract under s. 66.0375 66.0735, housing authority under ss.
866.40 to 66.404, local exposition district created under subch. II of ch. 229, local
9cultural arts district created under subch. V of ch. 229,
redevelopment authority
10under s. 66.431 or community development authority under s. 66.4325 shall make
11an order providing for the laying out, relocation and improvement of the public
12highway, street, alley, storm and sanitary sewers, watercourses, water transmission
13and distribution facilities, mass transit facilities, airport, or other transportation
14facilities, gas or leachate extraction systems to remedy environmental pollution from
15a solid waste disposal facility, housing project, redevelopment project, cultural arts
16facilities,
exposition center or exposition center facilities which shall be known as the
17relocation order. This order shall include a map or plat showing the old and new
18locations and the lands and interests required. A copy of the order shall, within 20
19days after its issue, be filed with the county clerk of the county wherein the lands are
20located or, in lieu of filing a copy of the order, a plat may be filed or recorded in
21accordance with s. 84.095.
SB442-SSA1, s. 10 22Section 10. 32.07 (2) of the statutes is amended to read:
SB442-SSA1,6,723 32.07 (2) The petitioner shall determine necessity if application is by the state
24or any commission, department, board or other branch of state government or by a
25city, village, town, county, school district, board, commission, public officer,

1commission created by contract under s. 66.30, joint local water authority under s.
266.0735, redevelopment authority created under s. 66.431, local exposition district
3created under subch. II of ch. 229, local cultural arts district created under subch.
4V of ch. 229,
housing authority created under ss. 66.40 to 66.404 or for the
5right-of-way of a railroad up to 100 feet in width, for a telegraph, telephone or other
6electric line, for the right-of-way for a gas pipeline, main or service or for easements
7for the construction of any elevated structure or subway for railroad purposes.
SB442-SSA1, s. 11 8Section 11. 40.02 (28) of the statutes, as affected by 1999 Wisconsin Act 9,
9section 931b, is amended to read:
SB442-SSA1,6,1910 40.02 (28) "Employer" means the state, including each state agency, any
11county, city, village, town, school district, other governmental unit or
12instrumentality of 2 or more units of government now existing or hereafter created
13within the state and, any federated public library system established under s. 43.19
14whose territory lies within a single county with a population of 500,000 or more, a
15local exposition district created under subch. II of ch. 229 and a family care district
16created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3) and
17subch. X. "Employer" does not include a local cultural arts district created under
18subch. V of ch. 229.
Each employer shall be a separate legal jurisdiction for OASDHI
19purposes.
SB442-SSA1, s. 12 20Section 12. 40.02 (28) of the statutes, as affected by 1999 Wisconsin Act 9,
21section 931c, and 1999 Wisconsin Act .... (this act), is repealed and recreated to read:
SB442-SSA1,7,522 40.02 (28) "Employer" means the state, including each state agency, any
23county, city, village, town, school district, other governmental unit or
24instrumentality of 2 or more units of government now existing or hereafter created
25within the state, any federated public library system established under s. 43.19

1whose territory lies within a single county with a population of 500,000 or more, a
2local exposition district created under subch. II of ch. 229 and a family care district
3created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3).
4"Employer" does not include a local cultural arts district created under subch. V of
5ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI purposes.
SB442-SSA1, s. 13 6Section 13. 40.02 (36) of the statutes, as affected by 1999 Wisconsin Act 9, is
7amended to read:
SB442-SSA1,7,178 40.02 (36) "Governing body" means the legislature or the head of each state
9agency with respect to employes of that agency for the state, the common council in
10cities, the village board in villages, the town board in towns, the county board in
11counties, the school board in school districts, or the board, commission or other
12governing body having the final authority for any other unit of government, for any
13agency or instrumentality of 2 or more units of government, for any federated public
14library system established under s. 43.19 whose territory lies within a single county
15with a population of 500,000 or more, for a local exposition district created under
16subch. II of ch. 229 or for a family care district created under s. 46.2895, but does not
17include a local cultural arts district created under subch. V of ch. 229
.
SB442-SSA1, s. 14 18Section 14. 66.04 (1) of the statutes is renumbered 66.04 (1e).
SB442-SSA1, s. 15 19Section 15. 66.04 (1a) of the statutes is created to read:
SB442-SSA1,7,2220 66.04 (1a) Definition. In this section, "governing board" has the meaning given
21under s. 34.01 (1) but does not include a local cultural arts district board created
22under subch. V of ch. 229.
SB442-SSA1, s. 16 23Section 16. 66.04 (2) (a) (intro.) of the statutes is amended to read:
SB442-SSA1,8,3
166.04 (2) (a) (intro.) Any county, city, village, town, school district, drainage
2district, technical college district or other governing board as defined by s. 34.01 (1)
3may invest any of its funds not immediately needed in any of the following:
SB442-SSA1, s. 17 4Section 17. 66.04 (2) (a) 3t. of the statutes is created to read:
SB442-SSA1,8,65 66.04 (2) (a) 3t. Bonds issued by a local cultural arts district under subch. V of
6ch. 229.
SB442-SSA1, s. 18 7Section 18. 66.066 (1) (a) of the statutes is amended to read:
SB442-SSA1,8,178 66.066 (1) (a) "Municipality" means any city, village, town, county, commission
9created by contract under s. 66.30, public inland lake protection and rehabilitation
10district established under s. 33.23, 33.235 or 33.24, metropolitan sewerage district
11created under ss. 66.20 to 66.26 or 66.88 to 66.918, town sanitary district under
12subch. IX of ch. 60, a local professional baseball park district created under subch.
13III of ch. 229, a local cultural arts district created under subch. V of ch. 229 or a
14municipal water district or power district under ch. 198 and any other public or
15quasi-public corporation, officer, board or other public body empowered to borrow
16money and issue obligations to repay the same out of revenues. "Municipality" does
17not include the state or a local exposition district created under subch. II of ch. 229.
SB442-SSA1, s. 19 18Section 19. 66.066 (5) of the statutes is renumbered 66.066 (5) (a).
SB442-SSA1, s. 20 19Section 20. 66.066 (5) (c) of the statutes is created to read:
SB442-SSA1,8,2120 66.066 (5) (c) Revenue bonds issued by a local cultural arts district created
21under subch. V of ch. 229 are subject to the provisions in ss. 229.849 to 229.853.
SB442-SSA1, s. 21 22Section 21. 66.067 of the statutes is amended to read:
SB442-SSA1,9,6 2366.067 Public works projects. For financing purposes, garbage
24incinerators, toll bridges, swimming pools, tennis courts, parks, playgrounds, golf
25links, bathing beaches, bathhouses, street lighting, city halls, village halls, town

1halls, courthouses, jails, schools, cooperative educational service agencies, hospitals,
2homes for the aged or indigent, child care centers, as defined in s. 231.01 (3c),
3regional projects, waste collection and disposal operations, systems of sewerage,
4local professional baseball park facilities, local cultural arts facilities and any and
5all other necessary public works projects undertaken by any municipality are public
6utilities within the meaning of s. 66.066.
SB442-SSA1, s. 22 7Section 22. 66.30 (1) (a) of the statutes, as affected by 1999 Wisconsin Act 9,
8is amended to read:
SB442-SSA1,9,199 66.30 (1) (a) In this section "municipality" means the state or any department
10or agency thereof, or any city, village, town, county, school district, public library
11system, public inland lake protection and rehabilitation district, sanitary district,
12farm drainage district, metropolitan sewerage district, sewer utility district, solid
13waste management system created under s. 59.70 (2), local exposition district
14created under subch. II of ch. 229, local professional baseball park district created
15under subch. III of ch. 229, local cultural arts district created under subch. V of ch.
16229,
family care district under s. 46.2895, water utility district, mosquito control
17district, municipal electric company, county or city transit commission, commission
18created by contract under this section, taxation district or regional planning
19commission.
SB442-SSA1, s. 23 20Section 23. 70.11 (40) of the statutes is created to read:
SB442-SSA1,9,2221 70.11 (40) Local cultural arts district. Property of a local cultural arts
22district under subch. V of ch. 229, except any of the following:
SB442-SSA1,9,2523 (a) Property that is not a part of the physical structure of a cultural arts facility,
24as defined under s. 229.841 (5), if that property is used for a retail business or a
25restaurant, unless the retail business or restaurant is operated by the local cultural

1arts district or by a corporation, organization or association described in section 501
2(c) 3 of the Internal Revenue Code that is exempt from taxation under section 501
3(a) of the Internal Revenue Code.
SB442-SSA1,10,54 (b) A parking lot or parking structure that is not used to support the operation
5of a cultural arts facility, as defined under s. 229.841 (5).
SB442-SSA1, s. 24 6Section 24. 71.05 (1) (c) 6. of the statutes is created to read:
SB442-SSA1,10,77 71.05 (1) (c) 6. A local cultural arts district created under subch. V of ch. 229.
SB442-SSA1, s. 25 8Section 25. 71.26 (1) (bm) of the statutes is amended to read:
SB442-SSA1,10,129 71.26 (1) (bm) Certain local districts. Income of a local exposition district
10created under subch. II of ch. 229 or, a local professional baseball park district
11created under subch. III of ch. 229 or a local cultural arts district created under
12subch. V of ch. 229
.
SB442-SSA1, s. 26 13Section 26. 71.26 (1m) (g) of the statutes is amended to read:
SB442-SSA1,10,1514 71.26 (1m) (g) Those issued under s. 66.066 by a local professional baseball
15park district or a local cultural arts district.
SB442-SSA1, s. 27 16Section 27. 71.36 (1m) of the statutes is amended to read:
SB442-SSA1,11,1217 71.36 (1m) A tax-option corporation may deduct from its net income all
18amounts included in the Wisconsin adjusted gross income of its shareholders, the
19capital gain deduction under s. 71.05 (6) (b) 9. and all amounts not taxable to
20nonresident shareholders under ss. 71.04 (1) and (4) to (9) and 71.362. For purposes
21of this subsection, interest on federal obligations, obligations issued under s. 66.066
22by a local professional baseball park district or a local cultural arts district,
23obligations issued under ss. 66.40, 66.431 and 66.4325, obligations issued under s.
24234.65 to fund an economic development loan to finance construction, renovation or
25development of property that would be exempt under s. 70.11 (36) and obligations

1issued under subch. II of ch. 229 is not included in shareholders' income. The
2proportionate share of the net loss of a tax-option corporation shall be attributed and
3made available to shareholders on a Wisconsin basis but subject to the limitation and
4carry-over rules as prescribed by section 1366 (d) of the internal revenue code. Net
5operating losses of the corporation to the extent attributed or made available to a
6shareholder may not be used by the corporation for further tax benefit. For purposes
7of computing the Wisconsin adjusted gross income of shareholders, tax-option items
8shall be reported by the shareholders and those tax-option items, including capital
9gains and losses, shall retain the character they would have if attributed to the
10corporation, including their character as business income. In computing the tax
11liability of a shareholder, no credit against gross tax that would be available to the
12tax-option corporation if it were a nontax-option corporation may be claimed.
SB442-SSA1, s. 28 13Section 28. 71.45 (1t) (g) of the statutes is amended to read:
SB442-SSA1,11,1514 71.45 (1t) (g) Those issued under s. 66.066 by a local professional baseball park
15district or a local cultural arts district.
SB442-SSA1, s. 29 16Section 29. 77.54 (9a) (h) of the statutes is created to read:
SB442-SSA1,11,1717 77.54 (9a) (h) A local cultural arts district under subch. V of ch. 229.
SB442-SSA1, s. 30 18Section 30. 111.02 (7) of the statutes is amended to read:
SB442-SSA1,12,219 111.02 (7) The term "employer" means a person who engages the services of an
20employe, and includes any person acting on behalf of an employer within the scope
21of his or her authority, express or implied, but shall not include the state or any
22political subdivision thereof, or any labor organization or anyone acting in behalf of
23such organization other than when it is acting as an employer in fact. For purposes
24of this subsection, a person who engages the services of an employe includes the

1University of Wisconsin Hospitals and Clinics Authority and a local cultural arts
2district created under subch. V of ch. 229
.
SB442-SSA1, s. 31 3Section 31. 111.70 (1) (j) of the statutes, as affected by 1999 Wisconsin Act 9,
4is amended to read:
SB442-SSA1,12,105 111.70 (1) (j) "Municipal employer" means any city, county, village, town,
6metropolitan sewerage district, school district, family care district or any other
7political subdivision of the state that engages the services of an employe and includes
8any person acting on behalf of a municipal employer within the scope of the person's
9authority, express or implied, but specifically does not include a local cultural arts
10district created under subch. V of ch. 229
.
SB442-SSA1, s. 32 11Section 32. 219.09 (1) (f) of the statutes is created to read:
SB442-SSA1,12,1312 219.09 (1) (f) Bonds issued by a local cultural arts district under subch. V of ch.
13229.
SB442-SSA1, s. 33 14Section 33. Subchapter V of chapter 229 [precedes 229.840] of the statutes is
15created to read:
SB442-SSA1,12,1616 chapter 229
SB442-SSA1,12,1917 Subchapter V
18 Local cultural
19 arts districts
SB442-SSA1,13,2 20229.840 Legislative declaration. (1) The legislature determines that this
21subchapter serves a statewide public purpose by assisting the development of
22cultural arts facilities in the state, which provide educational and recreational
23opportunities for Wisconsin residents, by enhancing the appreciation of the arts
24among the states' residents, by encouraging economic development and tourism, by

1reducing unemployment and by bringing needed capital into the state for the benefit
2and welfare of people throughout the state.
SB442-SSA1,13,8 3(2) The legislature determines that cultural arts districts in populous cities
4serve a public purpose in those cities by providing educational and recreational
5opportunities for residents of those cities, by enhancing the appreciation of the arts
6among the residents of those cities, by encouraging economic development and
7tourism, by reducing unemployment and by bringing needed capital into those cities
8for the benefit and welfare of people in those cities.
SB442-SSA1,13,9 9229.841 Definitions. In this subchapter:
SB442-SSA1,13,11 10(1) "Bond" means any bond, note or other obligation issued under s. 66.066 by
11a district.
SB442-SSA1,13,15 12(2) "Bond resolution" means a resolution of the district board authorizing the
13issuance of, or providing terms and conditions related to, bonds and includes, where
14appropriate, any trust agreement, trust indenture, indenture of mortgage or deed of
15trust providing terms and conditions for bonds.
SB442-SSA1,13,21 16(3) "County executive" means the county executive or, if the county does not
17have a county executive, the chairperson of the county board of supervisors, of the
18county in which the sponsoring city is located. If a sponsoring city is located in more
19than one county, the city shall be considered to be located solely in the county in
20which the greatest percentage of its territory is located at the time a district is
21created.
SB442-SSA1,13,24 22(4) "Cultural arts activity" means any performance, program, concert, exhibit,
23show, broadcast or other activity with any artistic or cultural significance, or any
24related or incidental activity.
SB442-SSA1,14,6
1(5) "Cultural arts facilities" means district property, tangible or intangible,
2owned in whole or in part, operated or leased by a district that is principally for a
3cultural arts activity including auditoriums, music halls, exhibit halls, theaters,
4practice facilities, dressing rooms, parking lots, garages, restaurants, concession
5facilities, entertainment facilities, transportation facilities and other functionally
6related or auxiliary facilities or structures.
SB442-SSA1,14,7 7(6) "District" means a district created under this subchapter.
SB442-SSA1,14,8 8(7) "District board" means the governing board of a district.
SB442-SSA1,14,9 9(8) "Mayor" means the mayor of a sponsoring city.
SB442-SSA1,14,10 10(9) "Populous city" means any city with a population of more than 150,000.
SB442-SSA1,14,12 11(10) "Sponsoring city" means a populous city that creates a district under this
12subchapter.
SB442-SSA1,14,17 13229.842 Creation and organization. (1) A sponsoring city may create a
14special purpose district that is a local governmental unit, that is a body corporate and
15politic, that is separate and distinct from, and independent of, the state and the
16sponsoring city, that has the powers under s. 229.844 and the name of which includes
17"Cultural Arts District", if all of the following occur:
SB442-SSA1,14,1918 (a) The mayor issues a written proclamation declaring the need for establishing
19a district.
SB442-SSA1,14,2320 (b) The sponsoring city's common council adopts a resolution that approves the
21mayor's proclamation, and delivers a copy of the resolution to the governor. The
22resolution under this paragraph may contain a procedure that the mayor must follow
23in appointing persons to the board under sub. (2) (c).
SB442-SSA1,15,3
1(c) If the sponsoring city is not a 1st class city, the resolution under par. (b)
2specifies the area of the district's jurisdiction, as described in s. 229.843 (1), within
3which the district board may exercise its power of eminent domain.
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