SE5 AB1: Bill Text

AB1, s. 60 Section 60. Subchapter III of chapter 229 [precedes 229.64] of the statutes is created to read:

AB1,27,6 Chapter 229

AB1,27,9 Subchapter III Local professional baseball park districts

AB1,27,19 229.64 Legislative declaration. The legislature determines that the provision of assistance by state agencies to a district under this subchapter, any appropriation of funds to a district under this subchapter and the moral obligation pledge under s. 229.74 (7) serve a statewide public purpose by assisting the development of a professional baseball park in the state for providing recreation, by encouraging economic development and tourism, by reducing unemployment and by bringing needed capital into the state for the benefit and welfare of people throughout the state. The legislature determines that the taxes that may be imposed by a district under subch. V of ch. 77 and under s. 66.75 (1m) (a) are special taxes that are generated apart from any direct annual tax on taxable property.

AB1,27,20 229.65 Definitions. In this subchapter:

AB1,27,25 (1) "Baseball park facilities" means property, tangible or intangible, owned in whole or in substantial part, operated or leased by a district that is principally for professional baseball including parking lots, garages, restaurants, parks, concession facilities, entertainment facilities and transportation facilities, and other functionally related or auxiliary facilities or structures.

AB1,28,2 (2) "Bond" means any bond, note or other obligation issued under s. 66.066 by a district.

AB1,28,6 (3) "Bond resolution" means a resolution of the district board authorizing the issuance of, or providing terms and conditions related to, bonds and includes, where appropriate, any trust agreement, trust indenture, indenture of mortgage or deed of trust providing terms and conditions for bonds.

AB1,28,9 (4) "Chief executive officer" means the county executive of a county or, if the county does not have a county executive, the chairperson of the county board of supervisors.

AB1,28,10 (5) "District" means a special district created under this subchapter.

AB1,28,11 (6) "District board" means the governing board of a district.

AB1,28,16 229.66 Creation and organization. (1) There is created, for each jurisdiction under s. 229.67, a special district that is a local governmental unit, that is a body corporate and politic, that is separate and distinct from, and independent of, the state, that has the powers under s. 229.68 and the name of which includes "Professional Baseball Park District".

AB1,28,19 (2) A district is governed by its district board. The district board may adopt bylaws to govern the district's activities, subject to this subchapter. The district board shall consist of the following members:

AB1,28,21 (a) Four persons appointed by the governor, at least 2 of whom reside within the jurisdiction of the district.

AB1,28,25 (b) One person appointed by the chief executive officer of the more populous county within the jurisdiction of a district, except that in single-county jurisdictions the person under this paragraph shall be appointed by the chief executive officer of that county.

AB1,29,4 (c) One person appointed by the chief executive officer of the less populous county within the jurisdiction of a district, except that in single-county jurisdictions the person under this paragraph shall be appointed by the chief executive officer of that county.

AB1,29,6 (d) One person appointed by the mayor of the most populous city within the jurisdiction of a district.

AB1,29,16 (3) Upon appointment under sub. (2), the appointing authorities shall certify the appointees to the secretary of administration. The terms of office of the persons appointed under sub. (2) shall be 4 years, except that for the initial appointments for a newly created district the initial terms shall expire on July 1 of the 4th year beginning after creation of a district. Persons appointed under sub. (2) may be removed from the district board before the expiration of their terms by the appointing authority but only for cause, as defined in s. 17.16 (2). Vacancies shall be filled by the appointing authority who appointed the person whose office is vacant. A person appointed to fill a vacancy shall serve for the remainder of the term to which he or she is appointed.

AB1,29,21 (4) The district board shall elect from its membership a chairperson, a vice chairperson, a secretary and a treasurer. A majority of the current membership of the district board constitutes a quorum to do business. The district may take action based on the affirmative vote of a majority of those directors who are present at a meeting of the district board.

AB1,29,23 (5) The members of the district board shall be reimbursed for their actual and necessary expenses incurred in the performance of their duties.

AB1,30,3 (6) Upon the appointment and qualification of a majority of the members of a district board, the district board may exercise the powers and duties of a district board under this subchapter.

AB1,30,4 (7) At its first meeting the district board shall name the district.

AB1,30,10 229.67 Jurisdiction. A district's jurisdiction is any county with a population of more than 500,000 and the most populous county that is contiguous to that county, unless the contiguous county is already included in a district, in which case the district's jurisdiction shall consist solely of the county with the population of more than 500,000. Once a county is included in a district's jurisdiction the county remains in the district until the district is dissolved under s. 229.71.

AB1,30,13 229.68 Powers of a district. A district has all of the powers necessary or convenient to carry out the purposes and provisions of this subchapter. In addition to all other powers granted by this subchapter, a district may do all of the following:

AB1,30,14 (1) Adopt and alter an official seal.

AB1,30,15 (2) Sue and be sued in its own name, plead and be impleaded.

AB1,30,16 (3) Maintain an office.

AB1,30,17 (4) In connection with baseball park facilities:

AB1,30,20 (a) Acquire, construct, equip, maintain, improve, operate and manage the baseball park facilities as a revenue-generating enterprise, or engage other persons to do these things.

AB1,30,21 (b) Acquire; lease, as lessor or lessee; use; or transfer property.

AB1,30,22 (c) Improve real property.

AB1,31,2 (d) Enter into contracts, subject to such standards as may be established by the district board. The district board may award any such contract for any combination or division of work it designates and may consider any factors in awarding a contract, including price, time for completion of work and qualifications and past performance of a contractor.

AB1,31,3 (e) Grant concessions.

AB1,31,5 (f) Make a grant of land or other property to the state, especially dedicated by the grant to use for a professional baseball park.

AB1,31,9 (5) Employ personnel, and fix and regulate their compensation; and provide, either directly or subject to an agreement under s. 66.30 as a participant in a benefit plan of another governmental entity, any employe benefits, including an employe pension plan.

AB1,31,12 (6) Purchase insurance, establish and administer a plan of self-insurance or, subject to an agreement with another governmental entity under s. 66.30, participate in a governmental plan of insurance or self-insurance.

AB1,31,13 (7) Mortgage, pledge or otherwise encumber the district's property or funds.

AB1,31,18 (8) Issue revenue bonds under s. 66.066, subject to ss. 229.72 to 229.79, and enter into agreements related to the issuance of bonds, including liquidity and credit facilities, remarketing agreements, insurance policies, guaranty agreements, letter of credit or reimbursement agreements, indexing agreements, interest exchange agreements and currency exchange agreements.

AB1,31,20 (9) Maintain funds and invest the funds in any investment that the district board considers appropriate.

AB1,31,22 (11) Promote, advertise and publicize its baseball park facilities and related activities.

AB1,31,25 (12) Set standards governing the use of, and the conduct within, its baseball park facilities in order to promote public safety and convenience and to maintain order.

AB1,32,3 (13) Establish and collect fees, and establish shared revenue arrangements or other charges for the use of its baseball park facilities or for services rendered by the district.

AB1,32,5 (14) Enter into partnerships, joint ventures, common ownership or other arrangements with other persons to further the district's purposes.

AB1,32,10 (15) Impose, by the adoption of a resolution, the taxes under s. 66.75 (1m) (a) and (em) and subch. V of ch. 77. A district may not levy any taxes that are not expressly authorized under s. 66.75 (1m) (a) and (em) and subch. V of ch. 77. If a district adopts a resolution which imposes taxes, it shall deliver a certified copy of the resolution to the secretary of revenue at least 30 days before its effective date.

AB1,32,11 (16) Accept gifts, loans and other aid.

AB1,32,13 (17) Administer the receipt of revenues, and oversee the payment of bonds issued by the district.

AB1,32,17 229.685 Special fund tax revenues. The district board shall maintain a special fund into which it deposits only the revenue received from the department of revenue, that is derived from the taxes imposed under subch. V of ch. 77, and may use this revenue only for purposes related to baseball park facilities.

AB1,32,20 229.69 Powers granted to a city or a county in a district. In addition to any powers that it may otherwise have, a county within a district's jurisdiction may do any of the following:

AB1,32,22 (1) Make grants or loans to a district upon terms that the city or county considers appropriate.

AB1,32,23 (2) Expend public funds to subsidize a district.

AB1,32,25 (3) Borrow money under ss. 67.04 and 67.12 (12) for baseball park facilities or to fund grants, loans or subsidies to a district.

AB1,33,2 (4) Grant land or other property to the state, especially dedicated by the grant to use for a professional baseball park.

AB1,33,6 229.70 Minority contracting goals. A district shall attempt to ensure that 15% of the total amount expended under this subchapter for the initial construction of baseball park facilities is paid to minority businesses, as defined in s. 16.75 (3m) (a).

AB1,33,12 229.71 Dissolution of a district. Subject to providing for the payment of its bonds, including interest on the bonds, and the performance of its other contractual obligations, a district may be dissolved by the action of the district board. If the district is dissolved, the property of the district shall be transferred to the counties in the jurisdiction, based on the tax revenues derived from each county, as determined by the secretary of administration.

AB1,33,15 229.72 Issuance and negotiability of bonds. (1m) Negotiability. All bonds are negotiable for all purposes, notwithstanding their payment from a limited source.

AB1,33,18 (2) Employment of financial consultant. A district may retain the building commission or any other person as its financial consultant to assist with and coordinate the issuance of bonds.

AB1,33,22 (6) Liability. Neither the members of the district board nor any person executing the bonds is liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance of the bonds, unless the personal liability or accountability is the result of wilful misconduct.

AB1,34,3 229.74 Special debt service reserve funds. (1) Designation of special debt service reserve funds. A district may designate one or more accounts in funds created under s. 66.066 (2) (e) as special debt service reserve funds, if, prior to each issuance of bonds to be secured by the special debt service reserve fund, the secretary of administration determines that all of the following conditions are met with respect to the bonds:

AB1,34,5 (a) Purpose. The proceeds of the bonds, other than refunding bonds, will be used for baseball park facilities.

AB1,34,11 (b) Feasibility. The proceeds of bonds, other than refunding bonds, will be used for feasible projects and there is a reasonable likelihood that the bonds will be repaid without the necessity of drawing on funds in the special debt service reserve fund that secures the bonds. The secretary of administration may make the determinations required under this paragraph only after considering all of the following:

AB1,34,13 1. Whether a pledge of the tax revenues of the district is made under the bond resolution.

AB1,34,14 2. How the tax revenues of the district are pledged to the payment of the bonds.

AB1,34,17 3. Revenue projections for the project to be financed by the bonds, including tax revenues, and the reasonableness of the assumptions on which these revenue projections are based.

AB1,34,19 4. The proposed interest rates of the bonds and the resulting cash-flow requirements.

AB1,34,21 5. The projected ratio of annual tax revenues to annual debt service of the district, taking into account capitalized interest.

AB1,34,24 6. Whether an understanding exists providing for repayment by the district to the state of all amounts appropriated to the special debt service reserve fund pursuant to sub. (7).

AB1,35,3 7. Whether the district has agreed to provide the department of administration with all financial reports of the district and all regular monthly statements of any trustee of the bonds on a direct and ongoing basis.

AB1,35,6 8. Whether the district has agreed that the department of administration will have direct and immediate access, at any time and without notice, to all records of the district.

AB1,35,12 (c) Limit on bonds issued. The amount of all bonds, other than refunding bonds, that would be secured by all special debt service reserve funds of the district will not exceed $160,000,000. In determining compliance with the limitation under this paragraph, the secretary of administration need not include bonds that are secured by a special debt service reserve fund to the extent that proceeds of the bonds are for the following purposes:

AB1,35,13 1. To make a deposit into a special debt service reserve fund.

AB1,35,14 2. To pay issuance costs of bonds secured by a special debt service reserve fund.

AB1,35,16 3. To pay capitalized interest costs on bonds secured by a special debt service reserve fund.

AB1,35,17 4. To pay any original issue discount.

AB1,35,19 (d) Date of issuance. The bonds, other than refunding bonds, will be issued no later than December 31, 2000.

AB1,35,21 (e) Refunding bonds. All refunding bonds to be secured by the special debt service reserve fund meet all of the following conditions:

AB1,35,23 1. The refunding bonds are to be issued to fund, refund or advance refund bonds secured by a special debt service reserve fund.

AB1,35,25 2. The refunding of bonds by the refunding bonds will not adversely affect the risk that the state will be called on to make a payment under sub. (7).

AB1,36,6 (f) Approval of outstanding debt. All outstanding debt of the district has been reviewed and approved by the secretary of administration. In determining whether to approve outstanding debt under this paragraph, the secretary may consider any factor which the secretary determines to have a bearing on whether the state moral obligation pledge under sub. (7) should be granted with respect to an issuance of bonds.

AB1,36,13 (2) Payment of funds into a special debt service reserve fund. A district shall pay into any special debt service reserve fund of the district any moneys appropriated and made available by the state for the purposes of the special debt service reserve fund, any proceeds of a sale of bonds to the extent provided in the bond resolution authorizing the issuance of the bonds and any other moneys that are made available to the district for the purpose of the special debt service reserve fund from any other source.

AB1,37,4 (3) Use of moneys in the special debt service reserve fund. All moneys held in any special debt service reserve fund of a district, except as otherwise specifically provided, shall be used, as required, solely for the payment of the principal of bonds secured in whole or in part by the special debt service reserve fund, the making of sinking fund payments with respect to these bonds, the purchase or redemption of these bonds, the payment of interest on these bonds or the payment of any redemption premium required to be paid when these bonds are redeemed prior to maturity. If moneys in a special debt service reserve fund at any time are less than the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund, the district may not use these moneys for any optional purchase or optional redemption of the bonds. Any income or interest earned by, or increment to, any special debt service reserve fund due to the investment of moneys in the special debt service reserve fund may be transferred by the district to other funds or accounts of the district to the extent that the transfer does not reduce the amount of the special debt service reserve fund below the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund.

AB1,37,12 (4) Limitation on bonds secured by a special debt service reserve fund. A district shall accumulate in each special debt service reserve fund an amount equal to the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund. A district may not at any time issue bonds secured in whole or in part by a special debt service reserve fund if upon the issuance of these bonds the amount in the special debt service reserve fund will be less than the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund.

AB1,38,3 (5) Special debt service reserve fund requirement. The special debt service reserve fund requirement for a special debt service reserve fund, as of any particular date of computation, is equal to an amount of money, as provided in the bond resolution authorizing the bonds with respect to which the special debt service reserve fund is established, that may not exceed the maximum annual debt service on the bonds of the district for that fiscal year or any future fiscal year of the district secured in whole or in part by that special debt service reserve fund. In computing the annual debt service for any fiscal year, bonds deemed to have been paid in accordance with the defeasance provisions of the bond resolution authorizing the issuance of the bonds shall not be included in bonds outstanding on such date of computation. The annual debt service for any fiscal year is the amount of money equal to the aggregate of all of the following calculated on the assumption that the bonds will, after the date of computation, cease to be outstanding by reason, but only by reason, of the payment of bonds when due, and the payment when due, and application in accordance with the bond resolution authorizing those bonds, of all of the sinking fund payments payable at or after the date of computation:

AB1,38,6 (a) All interest payable during the fiscal year on all bonds that are secured in whole or in part by the special debt service reserve fund and that are outstanding on the date of computation.

AB1,38,9 (b) The principal amount of all of the bonds that are secured in whole or in part by the special debt service reserve fund, are outstanding on the date of computation and mature during the fiscal year.

AB1,38,13 (c) All amounts specified in bond resolutions of the district authorizing any of the bonds that are secured in whole or in part by the special debt service reserve fund to be payable during the fiscal year as a sinking fund payment with respect to any of the bonds that mature after the fiscal year.

AB1,38,17 (6) Valuation of securities. In computing the amount of a special debt service reserve fund for the purposes of this section, securities in which all or a portion of the special debt service reserve fund is invested shall be valued periodically at their fair market value.

AB1,39,7 (7) State moral obligation pledge. If at any time of valuation the special debt service reserve fund requirement under sub. (5) for a special debt service reserve fund exceeds the amount of moneys in the special debt service reserve fund, the district board shall certify to the secretary of administration, the governor, the joint committee on finance and the governing body of each county in the district the amount necessary to restore the special debt service reserve fund to an amount equal to the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund. If this certification is received by the secretary of administration in an even-numbered year prior to the completion of the budget compilation under s. 16.43, the secretary shall include the certified amount in the budget compilation. In any case, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so certified to the appropriate special debt service reserve fund of the district. Recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that, if ever called upon to do so, it shall make this appropriation.

AB1,39,13 229.75 Bonds not public debt. (1) The state and each county in the district's jurisdiction are not liable on bonds and the bonds are not a debt of the state or either county in the district. All bonds shall contain a statement to this effect on the face of the bond. A bond issue does not, directly or indirectly or contingently, obligate the state or a political subdivision of the state to levy any tax or make any appropriation for payment of the bonds.

AB1,39,24 (2) Nothing in this subchapter authorizes a district to create a debt of the state or a county in the district's jurisdiction, and all bonds issued by a district are payable, and shall state that they are payable, solely from the funds pledged for their payment in accordance with the bond resolution authorizing their issuance or in any trust indenture or mortgage or deed of trust executed as security for the bonds. The state and each county in the district's jurisdiction are not liable for the payment of the principal of or interest on a bond or for the performance of any pledge, mortgage, obligation or agreement that may be undertaken by a district. The breach of any pledge, mortgage, obligation or agreement undertaken by a district does not impose pecuniary liability upon the state or a county in the district's jurisdiction or a charge upon its general credit or against its taxing power.