SB442: Bill Text

SB442, s. 26 Section 26. 70.11 (40) of the statutes is created to read:

SB442,15,5 70.11 (40) Local cultural arts district. Property of a local cultural arts district under subch. V of ch. 229, except any of the following:

SB442,15,11 (a) Property that is not a part of the physical structure of a cultural arts facility, as defined under s. 229.841 (5), if that property is used for a retail business or a restaurant, unless the retail business or restaurant is operated by the local cultural arts district or by a corporation, organization or association described in section 501 (c) 3 of the Internal Revenue Code that is exempt from taxation under section 501 (a) of the Internal Revenue Code.

SB442,15,13 (b) A parking lot or parking structure that is not used to support the operation of a cultural arts facility, as defined under s. 229.841 (5).

SB442, s. 27 Section 27. 71.05 (1) (c) 6. of the statutes is created to read:

SB442,15,15 71.05 (1) (c) 6. A local cultural arts district created under subch. V of ch. 229.

SB442, s. 28 Section 28. 71.05 (1) (c) 7. of the statutes is created to read:

SB442,15,18 71.05 (1) (c) 7. The Wisconsin Health and Educational Facilities Authority under ch. 231, if the bonds are issued with respect to a local cultural arts district.

SB442, s. 29 Section 29. 71.26 (1) (bm) of the statutes is amended to read:

SB442,15,23 71.26 (1) (bm) Certain local districts. Income of a local exposition district created under subch. II of ch. 229 or, a local professional baseball park district created under subch. III of ch. 229 or a local cultural arts district created under subch. V of ch. 229.

SB442, s. 30 Section 30. 71.26 (1m) (g) of the statutes is amended to read:

SB442,16,2 71.26 (1m) (g) Those issued under s. 66.066 by a local professional baseball park district or a local cultural arts district.

SB442, s. 31 Section 31. 71.26 (1m) (h) of the statutes is created to read:

SB442,16,5 71.26 (1m) (h) Those issued under ch. 231 with respect to a local cultural arts district.

SB442, s. 32 Section 32. 71.36 (1m) of the statutes is amended to read:

SB442,17,3 71.36 (1m) A tax-option corporation may deduct from its net income all amounts included in the Wisconsin adjusted gross income of its shareholders, the capital gain deduction under s. 71.05 (6) (b) 9. and all amounts not taxable to nonresident shareholders under ss. 71.04 (1) and (4) to (9) and 71.362. For purposes of this subsection, interest on federal obligations, obligations issued under s. 66.066 by a local professional baseball park district or a local cultural arts district, obligations issued under ss. 66.40, 66.431 and 66.4325, obligations issued under ch. 231 with respect to a local cultural arts district, obligations issued under s. 234.65 to fund an economic development loan to finance construction, renovation or development of property that would be exempt under s. 70.11 (36) and obligations issued under subch. II of ch. 229 is not included in shareholders' income. The proportionate share of the net loss of a tax-option corporation shall be attributed and made available to shareholders on a Wisconsin basis but subject to the limitation and carry-over rules as prescribed by section 1366 (d) of the internal revenue code. Net operating losses of the corporation to the extent attributed or made available to a shareholder may not be used by the corporation for further tax benefit. For purposes of computing the Wisconsin adjusted gross income of shareholders, tax-option items shall be reported by the shareholders and those tax-option items, including capital gains and losses, shall retain the character they would have if attributed to the corporation, including their character as business income. In computing the tax liability of a shareholder, no credit against gross tax that would be available to the tax-option corporation if it were a nontax-option corporation may be claimed.

SB442, s. 33 Section 33. 71.45 (1t) (g) of the statutes is amended to read:

SB442,17,6 71.45 (1t) (g) Those issued under s. 66.066 by a local professional baseball park district or a local cultural arts district.

SB442, s. 34 Section 34. 71.45 (1t) (h) of the statutes is created to read:

SB442,17,9 71.45 (1t) (h) Those issued under ch. 231 with respect to a local cultural arts district.

SB442, s. 35 Section 35. 77.54 (9a) (h) of the statutes is created to read:

SB442,17,11 77.54 (9a) (h) A local cultural arts district under subch. V of ch. 229.

SB442, s. 36 Section 36. 111.02 (7) of the statutes is amended to read:

SB442,17,20 111.02 (7) The term "employer" means a person who engages the services of an employe, and includes any person acting on behalf of an employer within the scope of his or her authority, express or implied, but shall not include the state or any political subdivision thereof, or any labor organization or anyone acting in behalf of such organization other than when it is acting as an employer in fact. For purposes of this subsection, a person who engages the services of an employe includes the University of Wisconsin Hospitals and Clinics Authority and a local cultural arts district created under subch. V of ch. 229.

SB442, s. 37 Section 37. 111.70 (1) (j) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

SB442,18,3 111.70 (1) (j) "Municipal employer" means any city, county, village, town, metropolitan sewerage district, school district, family care district or any other political subdivision of the state that engages the services of an employe and includes any person acting on behalf of a municipal employer within the scope of the person's authority, express or implied, but specifically does not include a local cultural arts district created under subch. V of ch. 229.

SB442, s. 38 Section 38. 219.09 (1) (e) of the statutes is created to read:

SB442,18,6 219.09 (1) (e) The Wisconsin Health and Educational Facilities Authority under ch. 231, with respect to a local cultural arts district under subch. V of ch. 229.

SB442, s. 39 Section 39. 219.09 (1) (f) of the statutes is created to read:

SB442,18,9 219.09 (1) (f) Bonds issued by a local cultural arts district under subch. V of ch. 229.

SB442, s. 40 Section 40. Subchapter V of chapter 229 [precedes 229.840] of the statutes is created to read:

SB442,18,12 chapter 229

SB442,18,15 Subchapter V Local cultural arts districts

SB442,18,22 229.840 Legislative declaration. (1) The legislature determines that this subchapter serves a statewide public purpose by assisting the development of cultural arts facilities in the state, which provide educational and recreational opportunities for Wisconsin residents, by enhancing the appreciation of the arts among the states' residents, 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.

SB442,19,3 (2) The legislature determines that cultural arts districts in populous cities serve a public purpose in those cities by providing educational and recreational opportunities for residents of those cities, by enhancing the appreciation of the arts among the residents of those cities, by encouraging economic development and tourism, by reducing unemployment and by bringing needed capital into those cities for the benefit and welfare of people in those cities.

SB442,19,4 229.841 Definitions. In this subchapter:

SB442,19,6 (1) "Bond" means any bond, note or other obligation issued under s. 66.066 by a district.

SB442,19,10 (2) "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.

SB442,19,16 (3) "County executive" means the county executive or, if the county does not have a county executive, the chairperson of the county board of supervisors, of the county in which the sponsoring city is located. If a sponsoring city is located in more than one county, the city shall be considered to be located solely in the county in which the greatest percentage of its territory is located at the time a district is created.

SB442,19,19 (4) "Cultural arts activity" means any performance, program, concert, exhibit, show, broadcast or other activity with any artistic or cultural significance, or any related or incidental activity.

SB442,19,25 (5) "Cultural arts facilities" means district property, tangible or intangible, owned in whole or in part, operated or leased by a district that is principally for a cultural arts activity including auditoriums, music halls, exhibit halls, theaters, practice facilities, dressing rooms, parking lots, garages, restaurants, concession facilities, entertainment facilities, transportation facilities and other functionally related or auxiliary facilities or structures.

SB442,20,1 (6) "District" means a district created under this subchapter.

SB442,20,2 (7) "District board" means the governing board of a district.

SB442,20,3 (8) "Mayor" means the mayor of a sponsoring city.

SB442,20,4 (9) "Populous city" means any city with a population of more than 150,000.

SB442,20,6 (10) "Sponsoring city" means a populous city that creates a district under this subchapter.

SB442,20,11 229.842 Creation and organization. (1) A sponsoring city may create a special purpose 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 and the sponsoring city, that has the powers under s. 229.844 and the name of which includes "Cultural Arts District", if all of the following occur:

SB442,20,13 (a) The mayor issues a written proclamation declaring the need for establishing a district.

SB442,20,17 (b) The sponsoring city's common council adopts a resolution that approves the mayor's proclamation, and delivers a copy of the resolution to the governor. The resolution under this paragraph may contain a procedure that the mayor must follow in appointing persons to the board under sub. (2) (c).

SB442,20,20 (c) If the sponsoring city is not a 1st class city, the resolution under par. (b) specifies the area of the district's jurisdiction, as described in s. 229.843 (1), within which the district board may exercise its power of eminent domain.

SB442,20,25 (2) A district is governed by its district board. If the sponsoring city is a 1st class city, sub. (4) applies but pars. (a) to (d) and sub. (3) do not apply and the 1st class city's common council shall determine the membership, structure, qualifications and selection procedures for the district board. If the sponsoring city is not a 1st class city, the district board shall consist of the following members, subject to sub. (4):

SB442,21,3 (a) The following persons, or their designees, shall be ex-officio members of the board, except that a designee serves at the pleasure of his or her appointing authority:

SB442,21,4 1. The governor.

SB442,21,5 2. The mayor.

SB442,21,6 3. The county executive.

SB442,21,13 (b) Three persons appointed by the governor, one of whom shall be selected from a list of 3 to 5 names that is submitted by the Board of Regents of the University of Wisconsin System. Of the remaining 2 appointees under this paragraph, at least one of the appointees shall have a demonstrated interest in cultural arts activities and one of the appointees may be an elective state official. A person appointed under this paragraph may take his or her seat immediately upon appointment and qualification.

SB442,21,22 (c) Subject to sub. (1) (b), 6 persons appointed by the mayor, one of whom shall be selected from a list of 3 to 5 names that is submitted by the school board of the school district in which the greatest percentage of the sponsoring city's territory is located. Of the remaining 5 appointees under this paragraph, at least 2 of the appointees shall have a demonstrated interest in cultural arts activities and not more than 3 of the appointees may be elective city officials. A person appointed under this paragraph may take his or her seat immediately upon appointment and qualification, subject to any procedures specified by the common council under sub. (1) (b).

SB442,21,25 (d) One person appointed by the county executive, who may not be a county official. A person appointed under this paragraph may take his or her seat immediately upon appointment and qualification.

SB442,22,2 (3) (a) The persons appointed under sub. (2) (b) to (d) shall serve staggered terms of 4 years expiring on July 1, except that:

SB442,22,4 1. The initial term of the director appointed by the county executive shall expire on July 1 of the 3rd year beginning after the year of creation of a district.

SB442,22,7 2. The initial term of one director appointed by the governor and 2 directors appointed by the mayor shall expire on July 1 of the 4th year beginning after the year of creation of a district.

SB442,22,10 3. The initial term of one director appointed by the governor and 2 directors appointed by the mayor shall expire on July 1 of the 5th year beginning after the year of creation of a district.

SB442,22,13 4. The initial term of one director appointed by the governor and 2 directors appointed by the mayor shall expire on July 1 of the 6th year beginning after the year of creation of a district.

SB442,22,15 (b) The governor and mayor shall each designate with their initial appointments the terms to which directors have been appointed.

SB442,22,25 (c) Persons appointed under sub. (2) (b) to (d) must have resided within 25 miles of the sponsoring city's city hall for at least one year before their appointment. Persons appointed under sub. (2) (b) to (d) 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 under sub. (2) (b) to (d) shall serve for the remainder of the unexpired term to which he or she is appointed. The appointing authorities shall confer with one another regarding their appointments with a view toward achieving diversity on the district board.

SB442,23,9 (4) If the sponsoring city's common council determines that another city or a village or town having territory located within 25 miles of the sponsoring city's city hall provides substantial support to the district, the council may increase the size of the district board to include as a member the mayor, village president or town board chair of that city, village or town, or the designee of such a mayor, village president or town board chair. If the sponsoring city's common council subsequently determines that the other city or the village or town no longer provides substantial support to the district, the council may decrease the size of the district board to exclude that member.

SB442,23,14 (5) 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 members of the district board who are present at a meeting of the district board.

SB442,23,16 (6) The members of the district board shall be reimbursed by the district for their actual and necessary expenses incurred in the performance of their duties.

SB442,23,19 (7) Upon the appointment and qualification of at least 7 of the members of a district board, the district board may exercise the powers and duties of a district board under this subchapter.

SB442,23,21 (8) At its first meeting, the district board shall name the district, and the name shall include "Cultural Arts District".

SB442,23,23 229.843 Jurisdiction. (1) Except as provided under s. 229.844 (4) (c), a district's jurisdiction shall be the boundaries of the sponsoring city.

SB442,23,25 (2) A district's jurisdiction and powers remain in effect even if the sponsoring city, after the creation of the district, is no longer a populous city.

SB442,24,3 229.844 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:

SB442,24,4 (1) Adopt bylaws to govern the district's activities, subject to this subchapter.

SB442,24,5 (2) Sue and be sued in its own name, plead and be impleaded.

SB442,24,6 (3) Maintain an office.

SB442,24,8 (4) In connection with cultural arts facilities or in support of any cultural arts activity:

SB442,24,11 (a) Acquire, construct, equip, maintain, improve, operate and manage the cultural arts facilities as a revenue-generating enterprise or otherwise, or engage other persons to do these things.

SB442,24,13 (b) Acquire; lease, as lessor or lessee; use; or transfer property within or outside of the district's jurisdiction.

SB442,24,16 (c) 1. If the district's sponsoring city is not a 1st class city, acquire property by condemnation, subject to the limits specified in the resolution under s. 229.842 (1) (c) or the ordinance or resolution under s. 229.846 (6).

SB442,24,19 2. If the district's sponsoring city is a 1st class city, request the 1st class city's redevelopment authority, created under s. 66.431 (3) (a) 3., to condemn property on behalf of the district.

SB442,24,24 (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.

SB442,24,25 (e) Grant concessions.

SB442,25,4 (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, other than a benefit plan provided under ch. 40, any employe benefits, including an employe pension plan.

SB442,25,8 (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, other than a plan provided under ch. 40.

SB442,25,10 (7) Mortgage, pledge or otherwise encumber the district's revenue, property or funds.

SB442,25,17 (8) (a) Issue revenue bonds under s. 66.066, subject to ss. 229.849 to 229.853, and enter into agreements related to the issuance of bonds by the district or, for purposes related to the district, by the Wisconsin Health and Educational Facilities Authority or a community development authority created under s. 66.4325, 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.

SB442,25,19 (b) Contract short term obligations, and pledge the full faith and credit of the district for repayment of those obligations.

SB442,25,23 (c) No director, employe of the district nor any other person executing any agreements with respect to any bonds or other obligations under this subsection is personally liable on the obligations subject to any personal liability or accountability by reason of the issuance of such obligations.