LRBa1351/1
MES&CTS:nwn&bjk:rs
2009 - 2010 LEGISLATURE
SENATE AMENDMENT 2,
TO 2009 SENATE BILL 440
January 25, 2010 - Offered by Senators Lassa and Darling.
SB440-SA2,1,11 At the locations indicated, amend the bill as follows:
SB440-SA2,1,3 21. Page 1, line 2: before "waiving" insert "granting authority to any county to
3issue industrial development revenue bonds and".
SB440-SA2,1,4 42. Page 3, line 6: after that line insert:
SB440-SA2,1,5 5" Section 1e. 66.1103 (1) (a) of the statutes is amended to read:
SB440-SA2,2,186 66.1103 (1) (a) It is found and declared that industries located in this state have
7been induced to move their operations in whole or in part to, or to expand their
8operations in, other states to the detriment of state, county and municipal revenue
9raising through the loss or reduction of income and franchise taxes, real estate and
10other local taxes causing an increase in unemployment; that such conditions now
11exist in certain areas of the state and may well arise in other areas; that economic
12insecurity due to unemployment is a serious menace to the general welfare of not
13only the people of the affected areas but of the people of the entire state; that

1unemployment results in obligations to grant public assistance and in the payment
2of unemployment insurance; that the absence of new economic opportunities has
3caused workers and their families to migrate elsewhere to find work and establish
4homes, which has resulted in a reduction of the tax base of counties, cities and other
5local governmental jurisdictions impairing their financial ability to support
6education and other local governmental services; that security against
7unemployment and the preservation and enhancement of the tax base can best be
8provided by the promotion, attraction, stimulation, rehabilitation and revitalization
9of commerce, industry and manufacturing; and that there is a need to stimulate a
10larger flow of private investment funds from banks, investment houses, insurance
11companies and other financial institutions. It is therefore the policy of this state to
12promote the right to gainful employment, business opportunities and general
13welfare of its inhabitants and to preserve and enhance the tax base by authorizing
14municipalities and counties to acquire industrial buildings and to finance the
15acquisition through the issuance of revenue bonds for the purpose of fulfilling the
16aims of this section. These purposes are declared to be public purposes for which
17public money may be spent and the necessity in the public interest for the provisions
18of this section is declared a matter of legislative determination.
SB440-SA2, s. 1f 19Section 1f. 66.1103 (1) (c) of the statutes is amended to read:
SB440-SA2,2,2320 66.1103 (1) (c) It is found and declared that the revitalization of counties and
21of
the central business districts of the municipalities of this state is necessary to
22retain existing industry in, and attract new industry to, this state and to protect the
23health, welfare and safety of residents of this state.
SB440-SA2, s. 1g 24Section 1g. 66.1103 (2) (a) of the statutes is amended to read:
SB440-SA2,3,5
166.1103 (2) (a) "Authorized developer" means a corporation organized under
2ch. 180 or 181 which the governing body designates as an authorized developer after
3making a finding that the principal purpose of the corporation is the general
4promotion of business development in the municipality or county or in the local area
5containing the municipality or county.
SB440-SA2, s. 1h 6Section 1h. 66.1103 (2) (as) of the statutes is created to read:
SB440-SA2,3,77 66.1103 (2) (as) "County" means any county in this state.
SB440-SA2, s. 1i 8Section 1i. 66.1103 (2) (c) of the statutes is amended to read:
SB440-SA2,3,149 66.1103 (2) (c) "Eligible participant" includes any person, other than the state
10or any other governmental unit, who enters into a revenue agreement with a
11municipality or county with respect to an industrial project. If more than one eligible
12participant is a party to a revenue agreement, the undertaking of each shall be either
13several or joint and several as the revenue agreement provides. An eligible
14participant need not be directly or indirectly a user of the project.
SB440-SA2, s. 1j 15Section 1j. 66.1103 (2) (e) of the statutes is amended to read:
SB440-SA2,3,1716 66.1103 (2) (e) "Governing body" means the board, council or other body in
17which the legislative powers of the municipality or county are vested.".
SB440-SA2,3,18 183. Page 3, line 11: after that line insert:
SB440-SA2,3,19 19" Section 2ae. 66.1103 (2) (L) of the statutes is amended to read:
SB440-SA2,4,220 66.1103 (2) (L) "Revenue agreement" includes any lease, sublease, installment
21or direct sales contract, service contract, take or pay contract, loan agreement or
22similar agreement providing that an eligible participant agrees to pay the
23municipality or county an amount of funds sufficient to provide for the prompt

1payment of the principal of, and interest on, the revenue bonds and agrees to
2construct the project.
SB440-SA2, s. 2am 3Section 2am. 66.1103 (3) (intro.) of the statutes is amended to read:
SB440-SA2,4,44 66.1103 (3) Powers. (intro.) A municipality or county may:
SB440-SA2, s. 2as 5Section 2as. 66.1103 (3) (b) 2. of the statutes is amended to read:
SB440-SA2,4,86 66.1103 (3) (b) 2. To fund the whole or part of any revenue bonds issued by the
7municipality or county, including any premium payable with respect to the bonds
8and any interest accrued or to accrue on the bonds; or
SB440-SA2, s. 2bm 9Section 2bm. 66.1103 (3) (f) of the statutes is amended to read:
SB440-SA2,4,1910 66.1103 (3) (f) Finance an industrial project which is located entirely within the
11geographic limits of the municipality or county or some contiguous part of which is
12located within and some contiguous part outside the geographic limits of the
13municipality or county; or, finance an industrial project which is located entirely
14outside the geographic limits of the municipality or county, but only if the revenue
15agreement for the project also relates to another project of the same eligible
16participant, part of which is located within the geographic limits of the municipality
17or county. The power granted by this paragraph does not include the power to annex,
18tax, zone or exercise any other municipal or county power with respect to that part
19of the project located outside of the geographic limits of the municipality or county.
SB440-SA2, s. 2c 20Section 2c. 66.1103 (4) (a) (intro.) of the statutes is amended to read:
SB440-SA2,5,921 66.1103 (4) (a) (intro.) Bonds issued by a municipality or county under this
22section are limited obligations of the municipality or county. The principal of and
23interest on the bonds are payable solely out of the revenues derived under the
24revenue agreement pertaining to the project to be financed by the bonds, or, if there
25is a default of the agreement and to the extent that the municipality or county

1provides in the proceedings of the governing body authorizing the bonds to be issued,
2out of any revenues derived from the sale, releasing or other disposition of the
3project, or out of any collateral securing the revenue agreement, or out of the
4proceeds of the sale of bonds. Bonds and interest coupons issued under this section
5are not an indebtedness of the municipality or county, within the meaning of any
6state constitutional provision or statutory limitation. Bonds and interest coupons
7issued under this section are not a charge against the municipality's or county's
8general credit or taxing powers or a pecuniary liability of the municipality or county
9or a redevelopment authority under s. 66.1333, including but not limited to:
SB440-SA2, s. 2cm 10Section 2cm. 66.1103 (4) (a) 2. of the statutes is amended to read:
SB440-SA2,5,1511 66.1103 (4) (a) 2. Any liability in connection with the issuance or sale of bonds,
12for representations made, or for the performance of the obligation of any person who
13is a party to a related transaction or agreement except as specifically provided in this
14section or by an express provision of the bond or a related written agreement to which
15the municipality or county is a party.
SB440-SA2, s. 2d 16Section 2d. 66.1103 (4) (d) of the statutes is amended to read:
SB440-SA2,5,2117 66.1103 (4) (d) Unless otherwise expressly or implicitly provided in the
18proceedings of the governing body authorizing the bonds to be issued, bonds issued
19under this section are subject to the general provisions of law, not inconsistent with
20this section, respecting the authorization, execution and delivery of the bonds of the
21municipality or county.
SB440-SA2, s. 2dm 22Section 2dm. 66.1103 (4) (e) of the statutes is amended to read:
SB440-SA2,6,223 66.1103 (4) (e) Bonds issued under this section may be sold at public or private
24sale in the manner, at the price and at the time determined by the governing body.
25The municipality or county may pay all expenses, premiums and commissions which

1the governing body considers necessary or advantageous in connection with the
2authorization, sale and issuance of the bonds.
SB440-SA2, s. 2e 3Section 2e. 66.1103 (4m) (a) of the statutes is amended to read:
SB440-SA2,6,54 66.1103 (4m) (a) A municipality or county may not enter into a revenue
5agreement with any person unless all of the following apply:
SB440-SA2,6,96 1. The person, at least 30 days prior to entering into the revenue agreement,
7has given a notice of intent to enter into the agreement, on a form prescribed under
8s. 560.034 (1), to the department of commerce and to any collective bargaining agent
9in this state with whom the person has a collective bargaining agreement ; and.
SB440-SA2,6,1510 2. The municipality or county has received an estimate issued under s. 560.034
11(5) (a), and the department of commerce has estimated whether the project which the
12municipality or county would finance under the revenue agreement is expected to
13eliminate, create or maintain jobs on the project site and elsewhere in this state and
14the net number of jobs expected to be eliminated, created or maintained as a result
15of the project.
SB440-SA2, s. 2em 16Section 2em. 66.1103 (4m) (b) of the statutes is amended to read:
SB440-SA2,6,2317 66.1103 (4m) (b) Any revenue agreement which an eligible participant enters
18into with a municipality or county to finance a project shall require the eligible
19participant to submit to the department of commerce within 12 months after the
20project is completed or 2 years after a revenue bond is issued to finance the project,
21whichever is sooner, on a form prescribed under s. 560.034 (1), the net number of jobs
22eliminated, created or maintained on the project site and elsewhere in this state as
23a result of the project.
SB440-SA2, s. 2f 24Section 2f. 66.1103 (4m) (c) of the statutes is amended to read:
SB440-SA2,7,3
166.1103 (4m) (c) Nothing in this subsection requires a person with whom a
2municipality or county has entered into a revenue agreement to satisfy an estimate
3under par. (a) 2.
SB440-SA2, s. 2fm 4Section 2fm. 66.1103 (4s) (b) (intro.) of the statutes is amended to read:
SB440-SA2,7,85 66.1103 (4s) (b) (intro.) A municipality or county may not enter into a revenue
6agreement with any employer that employs individuals in this state at a site other
7than a project site unless the employer certifies that the project is not expected to
8result in any lost jobs or the employer agrees to all of the following:
SB440-SA2, s. 2g 9Section 2g. 66.1103 (4s) (b) 3. of the statutes is amended to read:
SB440-SA2,7,1410 66.1103 (4s) (b) 3. The employer shall certify compliance with this subsection
11to the department, to the governing body of each municipality or county within which
12a lost job exists and to any collective bargaining agent in this state with which the
13employer has a collective bargaining agreement at the project site or at a site where
14a lost job exists.
SB440-SA2, s. 2gm 15Section 2gm. 66.1103 (5) (c) of the statutes is amended to read:
SB440-SA2,8,816 66.1103 (5) (c) A municipality or county may provide that proceeds from the
17sale of bonds and special funds from the revenues of the project and any funds held
18in reserve or debt service funds shall be invested and reinvested in securities and
19other investments as provided in the proceedings under which the bonds are
20authorized to be issued. The municipality or county may also provide that the
21proceeds or funds or investments and the revenues derived pursuant to the revenue
22agreement shall be received, held and disbursed by one or more banks or trust
23companies located in or out of this state. A municipality or county may also provide
24that the project and improvements shall be constructed or installed by the
25municipality or county, the eligible participant or the eligible participant's designee

1or any one or more of them on real estate owned by the municipality or county, the
2eligible participant or the eligible participant's designee and that the bond proceeds
3shall be disbursed by the trustee bank or trust company during construction upon
4the estimate, order or certificate of the eligible participant or the eligible
5participant's designee. In making agreements or provisions under this paragraph,
6a municipality or county may not obligate itself, except with respect to the project and
7the application of the revenues from the project, and may not incur a pecuniary
8liability or a charge upon its general credit or against its taxing powers.
SB440-SA2, s. 2h 9Section 2h. 66.1103 (5) (f) of the statutes is amended to read:
SB440-SA2,8,1510 66.1103 (5) (f) The revenue agreement may include any provisions that the
11municipality or county considers appropriate to effect the financing of the project,
12including a provision for payments to be made in installments and the securing of
13the obligation for any payments by lien or security interest in the undertaking either
14senior or junior to, or ranking equally with, any lien, security interest or rights of
15others.
SB440-SA2, s. 2hm 16Section 2hm. 66.1103 (6) (b) of the statutes is amended to read:
SB440-SA2,9,517 66.1103 (6) (b) The determination and findings of the governing body shall be
18embodied in the proceedings under which the proposed bonds are to be issued; but
19the amounts specified in par. (a) need not be expressed in dollars and cents in the
20revenue agreement and proceedings under which the bonds are authorized to be
21issued, but may be set forth in the form of a formula. Before the issuance of the bonds
22authorized by this section the municipality or county shall enter into a revenue
23agreement providing for payment to the municipality or county, or to the trustee for
24the account of the municipality or county, of those amounts, based upon the
25determination and findings, that will be sufficient to pay the principal of, and

1interest on, the bonds issued to finance the project; to build up and maintain any
2reserves considered advisable by the governing body, in connection with the project;
3and, unless the revenue agreement obligates the eligible participant to provide for
4the maintenance of and insurance on the project, to pay the costs of maintaining the
5project in good repair and keeping it properly insured.
SB440-SA2, s. 2i 6Section 2i. 66.1103 (6) (c) of the statutes is amended to read:
SB440-SA2,9,127 66.1103 (6) (c) A governing body may not adopt an initial resolution authorizing
8issuance of bonds to finance a project specified under sub. (2) (k) 11. unless the
9governing body finds and states in the initial resolution that the project will
10significantly increase the number of persons traveling to the municipality or county
11for business or recreation. The statement shall be included in the public notice
12required under sub. (10) (b).
SB440-SA2, s. 2im 13Section 2im. 66.1103 (6m) of the statutes is amended to read:
SB440-SA2,9,2114 66.1103 (6m) Notification of position openings. A municipality or county may
15not enter into a revenue agreement with any person who operates for profit unless
16that person has agreed to notify the department of workforce development and the
17local workforce development board established under 29 USC 2832, of any position
18to be filled in that municipality or county within one year after issuance of the
19revenue bonds. The person shall provide this notice at least 2 weeks before
20advertising the position. The notice required by this subsection does not affect the
21offer of employment requirements of sub. (4s).
SB440-SA2, s. 2j 22Section 2j. 66.1103 (8) of the statutes is amended to read:
SB440-SA2,9,2623 66.1103 (8) Purchase. The municipality or county may, by or with the consent
24of the eligible participant, accept any bona fide offer to purchase the project which
25is sufficient to pay all the outstanding bonds, interest, taxes, special levies and other

1costs that have been incurred. The municipality or county may also, by or with the
2consent of the eligible participant, accept any bona fide offer to purchase any
3unimproved land which is a part of the project, if the purchase price is not less than
4the cost of the land to the municipality or county computed on a prorated basis and
5if the purchase price is applied directly or indirectly to the payment of the principal
6or interest on the bonds.
SB440-SA2, s. 2jm 7Section 2jm. 66.1103 (9) of the statutes is amended to read:
SB440-SA2,10,198 66.1103 (9) Payment of taxes. If an industrial project acquired by a
9municipality or county under this section is used by a private person as a lessee,
10sublessee or in any capacity other than owner, that person is subject to taxation in
11the same amount and to the same extent as if that person were the owner of the
12property. Taxes shall be assessed to the private person using the real property and
13collected in the same manner as taxes assessed to owners of real property. When due,
14the taxes constitute a debt due from the private person to the taxing unit and are
15recoverable as provided by law, and the unpaid taxes become a lien against the
16property with respect to which they were assessed, superior to all other liens, except
17a lien under s. 292.31 (8) (i) or 292.81, and shall be placed on the tax roll when there
18has been a conveyance of the property in the same manner as other taxes assessed
19against real property.
SB440-SA2, s. 2k 20Section 2k. 66.1103 (10) (b) of the statutes is amended to read:
SB440-SA2,11,1021 66.1103 (10) (b) Upon the adoption of an initial resolution under this section,
22public notice of the adoption shall be given to the electors of the municipality or
23county
before the issuance of the bonds described in the resolution, by publication
24as a class 1 notice, under ch. 985. The notice need not set forth the full contents of
25the resolution, but shall state the maximum amount of the bonds; the name of the

1eligible participant; the purpose of the bonds; the net number of jobs which the
2project the municipality or county would finance with the bond issue is expected to
3eliminate, create or maintain on the project site and elsewhere in this state which
4is required to be shown by the proposed eligible participant on the form submitted
5under sub. (4m) (a) 1.; and that the resolution was adopted under this section. A form
6of the public notice shall be attached to the initial resolution. Prior to adoption of the
7initial resolution, the open meeting notice given to members of the public under s.
819.84 shall indicate that information with respect to the job impact of the project will
9be available at the time of consideration of the initial resolution. No other public
10notice of the authorization, issuance or sale of bonds under this section is required.
SB440-SA2, s. 2km 11Section 2km. 66.1103 (10) (c) of the statutes is amended to read:
SB440-SA2,11,1912 66.1103 (10) (c) A copy of the initial resolution together with a statement
13indicating when the public notice required under par. (b) was published shall be filed
14with the secretary of commerce within 20 days following publication of notice. Prior
15to the closing of the bond issue, the secretary may require additional information
16from the eligible participant or the municipality or county. After the closing of the
17bond issue, the secretary shall be notified of the closing date, any substantive
18changes made to documents previously filed with the secretary and the principal
19amount of the financing.
SB440-SA2, s. 2L 20Section 2L. 66.1103 (10) (d) of the statutes is amended to read:
SB440-SA2,12,721 66.1103 (10) (d) The governing body may issue bonds under this section
22without submitting the proposition to the electors of the municipality or county for
23approval unless within 30 days from the date of publication of notice of adoption of
24the initial resolution for the bonds, a petition conforming to the requirements of s.
258.40, signed by not less than 5% of the registered electors of the municipality or

1county
, or, if there is no registration of electors in the municipality or county, by 10%
2of the number of electors of the municipality or county voting for the office of governor
3at the last general election as determined under s. 115.01 (13), is filed with the clerk
4of the municipality or county and as provided in s. 8.37 requesting a referendum
5upon the question of the issuance of the bonds. If a petition is filed, the bonds may
6not be issued until approved by a majority of the electors of the municipality or
7county
voting on the referendum at a general or special election.
SB440-SA2, s. 2Lm 8Section 2Lm. 66.1103 (10) (e) of the statutes is amended to read:
SB440-SA2,12,119 66.1103 (10) (e) Members of a governing body and officers and employees of a
10municipality or county are not personally liable on bonds and are not personally
11liable for any act or omission related to the authorization or issuance of bonds.
SB440-SA2, s. 2m 12Section 2m. 66.1103 (10) (g) of the statutes is amended to read:
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