April 6, 2006 - Introduced by Senators Stepp, Grothman and Brown, cosponsored
by Representatives Suder, Gard, Musser, Vos, Newcomer, Albers, Krawczyk,
J. Fitzgerald, Gundrum, Kestell, Van Roy, Wood, Montgomery, Pettis, Ott,
McCormick, Honadel
and Moulton. Referred to Committee on Housing and
Financial Institutions.
SB681,1,8 1An Act to repeal 66.0617 (2) (am); to amend 66.0617 (1) (a), 66.0617 (1) (c),
266.0617 (1) (d), 66.0617 (1) (e), 66.0617 (1) (f), 66.0617 (1) (g), 66.0617 (1) (h),
366.0617 (2) (a), 66.0617 (2) (b), 66.0617 (2) (c), 66.0617 (3), 66.0617 (4) (a)
4(intro.), 66.0617 (4) (a) 3., 66.0617 (4) (b), 66.0617 (5) (b), 66.0617 (6) (b), 66.0617
5(6) (d), 66.0617 (6) (g), 66.0617 (7), 66.0617 (8), 66.0617 (9) (a) and 66.0617 (10);
6and to create 66.0628 (3) of the statutes; relating to: changes to the impact
7fee law and imposing certain requirements on other fees imposed by political
8subdivisions.
Analysis by the Legislative Reference Bureau
Under current law, a city, village, town, or county (political subdivision) may
impose an impact fee on a developer to pay for the capital costs to construct certain
public facilities that are necessary to accommodate land development. The
definition of "public facilities" includes highways; facilities for treating sewage,
storm waters, and surface waters; facilities for pumping, storing, and distributing
water; parks, playgrounds, and other recreational facilities; fire protection,
emergency medical, and law enforcement facilities; and libraries. Also under current
law, an impact fee ordinance must require that an impact fee that is imposed and
collected by a political subdivision, but not used within seven years after it is

collected, be refunded, with interest, to the current owner of the property with regard
to which the impact fee was imposed.
Under this bill, an impact fee may be imposed on the property owner and may
only be imposed by a municipality (a city, village, or town). Also under the bill,
"public facilities" does not include "other recreational facilities."
Currently, impact fees must be placed in a segregated, interest-bearing
account, and must be accounted for separately from other funds of the political
subdivision. Under the bill, a municipality must use generally accepted accounting
principals (GAAP) to keep track of each particular impact fee, and each such impact
fee must be kept in a separate account. Annually, the bill requires a municipality to
issue a report on the amount of impact fees collected and the uses to which the fees
are being put. The bill also imposes these accountability, GAAP, and reporting
requirements on a political subdivision for other fees that it imposes.
Under current law, an impact fee must be paid by a developer to a political
subdivision, either in full or in installments, before a building permit may be issued
or other required approval may be given by the political subdivision. Under the bill,
a developer must pay an impact fee in full to a municipality within 14 days of the
municipality's issuance of a building permit or an occupancy permit.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB681, s. 1 1Section 1. 66.0617 (1) (a) of the statutes is amended to read:
SB681,2,102 66.0617 (1) (a) "Capital costs" means the capital costs to construct, expand or
3improve public facilities, including the cost of land, and including legal, engineering
4and design costs to construct, expand or improve public facilities, except that not
5more than 10% of capital costs may consist of legal, engineering and design costs
6unless the political subdivision municipality can demonstrate that its legal,
7engineering and design costs which relate directly to the public improvement for
8which the impact fees were imposed exceed 10% of capital costs. "Capital costs" does
9not include other noncapital costs to construct, expand or improve public facilities,
10vehicles;
or the costs of equipment to construct, expand or improve public facilities.
SB681, s. 2 11Section 2. 66.0617 (1) (c) of the statutes is amended to read:
SB681,3,3
166.0617 (1) (c) "Impact fees" means cash contributions, contributions of land
2or interests in land or any other items of value that are imposed on a developer by
3a political subdivision municipality under this section.
SB681, s. 3 4Section 3. 66.0617 (1) (d) of the statutes is amended to read:
SB681,3,95 66.0617 (1) (d) "Land development" means the construction or modification of
6improvements to real property that creates additional residential dwelling units
7within a political subdivision municipality or that results in nonresidential uses that
8create a need for new, expanded or improved public facilities within a political
9subdivision
municipality.
SB681, s. 4 10Section 4. 66.0617 (1) (e) of the statutes is amended to read:
SB681,3,1211 66.0617 (1) (e) "Political subdivision" "Municipality" means a city, village, town
12or county
or town.
SB681, s. 5 13Section 5. 66.0617 (1) (f) of the statutes is amended to read:
SB681,3,2214 66.0617 (1) (f) "Public facilities" means highways, as defined in s. 340.01 (22),
15and other transportation facilities, traffic control devices, facilities for collecting and
16treating sewage, facilities for collecting and treating storm and surface waters,
17facilities for pumping, storing, and distributing water, parks, and playgrounds and
18other recreational facilities
, solid waste and recycling facilities, fire protection
19facilities, law enforcement facilities, emergency medical facilities and libraries
20except that, with regard to counties, "public facilities" does not include highways, as
21defined in s. 340.01 (22), other transportation facilities or traffic control devices
.
22"Public facilities" does not include facilities owned by a school district.
SB681, s. 6 23Section 6. 66.0617 (1) (g) of the statutes is amended to read:
SB681,3,2524 66.0617 (1) (g) "Service area" means a geographic area delineated by a political
25subdivision
municipality within which there are public facilities.
SB681, s. 7
1Section 7. 66.0617 (1) (h) of the statutes is amended to read:
SB681,4,42 66.0617 (1) (h) "Service standard" means a certain quantity or quality of public
3facilities relative to a certain number of persons, parcels of land or other appropriate
4measure, as specified by the political subdivision municipality.
SB681, s. 8 5Section 8. 66.0617 (2) (a) of the statutes is amended to read:
SB681,4,86 66.0617 (2) (a) Subject to par. (am), a political subdivision A municipality may
7enact an ordinance under this section that imposes impact fees on developers to pay
8for the capital costs that are necessary to accommodate land development.
SB681, s. 9 9Section 9. 66.0617 (2) (am) of the statutes is repealed.
SB681, s. 10 10Section 10. 66.0617 (2) (b) of the statutes is amended to read:
SB681,4,1611 66.0617 (2) (b) Subject to par. (c), this section does not prohibit or limit the
12authority of a political subdivision municipality to finance public facilities by any
13other means authorized by law, except that the amount of an impact fee imposed by
14a political subdivision municipality shall be reduced, under sub. (6) (d), to
15compensate for any other costs of public facilities imposed by the political subdivision
16municipality on developers to provide or pay for capital costs.
SB681, s. 11 17Section 11. 66.0617 (2) (c) of the statutes is amended to read:
SB681,4,1918 66.0617 (2) (c) Beginning on May 1, 1995, a political subdivision municipality
19may impose and collect impact fees only under this section.
SB681, s. 12 20Section 12. 66.0617 (3) of the statutes is amended to read:
SB681,5,221 66.0617 (3) Public hearing; notice. Before enacting an ordinance that imposes
22impact fees, or amending an existing ordinance that imposes impact fees, a political
23subdivision
municipality shall hold a public hearing on the proposed ordinance or
24amendment. Notice of the public hearing shall be published as a class 1 notice under

1ch. 985, and shall specify where a copy of the proposed ordinance or amendment and
2the public facilities needs assessment may be obtained.
SB681, s. 13 3Section 13. 66.0617 (4) (a) (intro.) of the statutes is amended to read:
SB681,5,94 66.0617 (4) (a) (intro.) Before enacting an ordinance that imposes impact fees
5or amending an ordinance that imposes impact fees by revising the amount of the fee
6or altering the public facilities for which impact fees may be imposed, a political
7subdivision
municipality shall prepare a needs assessment for the public facilities
8for which it is anticipated that impact fees may be imposed. The public facilities
9needs assessment shall include, but not be limited to, the following:
SB681, s. 14 10Section 14. 66.0617 (4) (a) 3. of the statutes is amended to read:
SB681,5,1511 66.0617 (4) (a) 3. A detailed estimate of the capital costs of providing the new
12public facilities or the improvements or expansions in existing public facilities
13identified in subd. 2., including an estimate of the effect of recovering these capital
14costs through impact fees on the availability of affordable housing within the
15political subdivision municipality.
SB681, s. 15 16Section 15. 66.0617 (4) (b) of the statutes is amended to read:
SB681,5,2017 66.0617 (4) (b) A public facilities needs assessment or revised public facilities
18needs assessment that is prepared under this subsection shall be available for public
19inspection and copying in the office of the clerk of the political subdivision
20municipality at least 20 days before the hearing under sub. (3).
SB681, s. 16 21Section 16. 66.0617 (5) (b) of the statutes is amended to read:
SB681,6,422 66.0617 (5) (b) An ordinance enacted under this section may delineate
23geographically defined zones within the political subdivision municipality and may
24impose impact fees on land development in a zone that differ from impact fees
25imposed on land development in other zones within the political subdivision

1municipality. The public facilities needs assessment that is required under sub. (4)
2shall explicitly identify the differences, such as land development or the need for
3those public facilities, which justify the differences between zones in the amount of
4impact fees imposed.
SB681, s. 17 5Section 17. 66.0617 (6) (b) of the statutes is amended to read:
SB681,6,86 66.0617 (6) (b) May not exceed the proportionate share of the capital costs that
7are required to serve land development, as compared to existing uses of land within
8the political subdivision municipality .
SB681, s. 18 9Section 18. 66.0617 (6) (d) of the statutes is amended to read:
SB681,6,1410 66.0617 (6) (d) Shall be reduced to compensate for other capital costs imposed
11by the political subdivision municipality with respect to land development to provide
12or pay for public facilities, including special assessments, special charges, land
13dedications or fees in lieu of land dedications under ch. 236 or any other items of
14value.
SB681, s. 19 15Section 19. 66.0617 (6) (g) of the statutes is amended to read:
SB681,6,2016 66.0617 (6) (g) Shall be payable by the developer or the property owner to the
17political subdivision, either municipality in full or in installment payments that are
18approved by the political subdivision, before
within 14 days of the issuance of a
19building permit may be issued or other required approval may be given within 14
20days of the issuance of an occupancy permit
by the political subdivision municipality.
SB681, s. 20 21Section 20. 66.0617 (7) of the statutes is amended to read:
SB681,7,222 66.0617 (7) Low-cost housing. An ordinance enacted under this section may
23provide for an exemption from, or a reduction in the amount of, impact fees on land
24development that provides low-cost housing, except that no amount of an impact fee
25for which an exemption or reduction is provided under this subsection may be shifted

1to any other development in the land development in which the low-cost housing is
2located or to any other land development in the political subdivision municipality.
SB681, s. 21 3Section 21. 66.0617 (8) of the statutes is amended to read:
SB681,7,134 66.0617 (8) Requirements for and reporting on impact fee revenues.
5Revenues from each impact fees fee that is imposed shall be placed in a separate
6segregated, interest-bearing account and shall be accounted for, in accordance with
7generally accepted accounting practices,
separately from the other funds of the
8political subdivision municipality. Impact fee revenues and interest earned on
9impact fee revenues may be expended only for the particular capital costs for which
10the impact fees were fee was imposed , unless the fee is refunded under sub. (9).
11Annually, a municipality shall publish, as a class 1 notice under ch. 985, a report that
12lists each impact fee imposed by the municipality which is in an account described
13in this subsection and the capital costs for which the fee was spent or is to be spent
.
SB681, s. 22 14Section 22. 66.0617 (9) (a) of the statutes, as affected by 2005 Wisconsin Act
15203
, is amended to read:
SB681,8,216 66.0617 (9) (a) Subject to par. (b), an ordinance enacted under this section shall
17specify that impact fees that are imposed and collected by a political subdivision
18municipality but are not used within 7 years after they are collected to pay the capital
19costs for which they were imposed shall be refunded to the current owner of the
20property with respect to which the impact fees were imposed, along with any interest
21that has accumulated, in described in sub. (8)
. The ordinance shall specify, by type
22of public facility, reasonable time periods within which impact fees must be spent or
23refunded under this subsection, subject to the 7-year limit in this paragraph and the
24extended time period specified in par. (b). In determining the length of the time
25periods under the ordinance, a political subdivision municipality shall consider what

1are appropriate planning and financing periods for the particular types of public
2facilities for which the impact fees are imposed.
SB681, s. 23 3Section 23. 66.0617 (10) of the statutes is amended to read:
SB681,8,84 66.0617 (10) Appeal. A political subdivision municipality that enacts an
5impact fee ordinance under this section shall, by ordinance, specify a procedure
6under which a developer upon whom an impact fee is imposed has the right to contest
7the amount, collection or use of the impact fee to the governing body of the political
8subdivision
municipality.
SB681, s. 24 9Section 24. 66.0628 (3) of the statutes is created to read:
SB681,8,1610 66.0628 (3) Revenues from each fee that is imposed shall be placed in a
11separate segregated interest-bearing account and shall be accounted for, in
12accordance with generally accepted accounting practices, separately from the other
13funds of the political subdivision. Annually, a political subdivision shall publish, as
14a class 1 notice under ch. 985, a report that lists each fee imposed by the political
15subdivision which is in an account described in this subsection and the purposes for
16which the fee was spent or is to be spent.
SB681,8,1717 (End)
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