CapitalSky
2015-16, No. 37
September 21

In this Issue:


Update on Status of TIF Legislation

Public Hearing on OPEB and BID Legislation

Sen. Committee Conducting State Tour

Recently Introduced Legislation

Hearings on Municipal Bills

League of Wisconsin Municipalities
 
Ph:  (608) 267-2380
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 www.lwm-info.org  
 
Legislative Bulletin Archive 
 
Update on Status of TIF Legislation
 
  
 
Last week the Senate unanimously passed amended versions of the following three bills recommended by the Legislative Council's TIF study committee, all of which the League supports. 

SB 53, Allows for extending the life of a tax incremental district by three years if the district was adversely impacted by 2013 Wisconsin Act 145, the technical college property tax rate buy down legislation. 

SB 56, Extends the October 1, 2015, deadline by which a local government must declare a TID to be distressed or severely distressed to October 1,
2018. [Note, the original bill extended the deadline to 2020.  An amendment passed on the floor reduced the extension to 2018.]

SB 57, The substitute amendment the Senate passed last week repeals the process for re-determining the base value of poorly performing TIDs created last session by 2013 Wisconsin Act 183.  Instead, the substitute amendment authorizes a local legislative body to request a base value re-determination any time that a TID is in a decrement situation (i.e., the current equalized value is less than the TID's base value).  A municipal governing body's ability to request re-determinations under the process created in the substitute amendment must be authorized in the TID's project plan, and the Joint Review Board  must approve the project plan but not each specific request for re-determination. Under the substitute amendment, a $1,000 fee paid to DOR would apply to each re-determination. The new process created in the substitute amendment for re-determining the base value of a TID in a decrement situation sunsets on December 31, 2018. 

Status of Other TIF bills. Last winter the Legislative Council's TIF study committee recommended 8 TIF bills to improve the state's tax incremental financing law. Last spring, the Senate unanimously passed four of those bills:

SB 50, makes several technical changes to the TIF law, including clarifying that the municipality's equalized value for the preceding year, as used in the calculation of the levy limit exception for the year that a TID terminates, excludes the value of any TID value increments. 

SB 51, makes several changes improving reporting and transparency regarding the performance of TIF districts, including requiring a community to submit an annual report by July 1 describing the status of each existing TID to each overlying taxing jurisdiction as well as to DOR.  (Passed the Senate on May 5, 2015)

SB 52, removes certain barriers that prevent TIDs from sharing tax increments, including limiting the participation of certain special purpose districts in tax incremental district financing, and allowing any type of a TID to be a recipient of donated tax increments. 
 
SB 54, removes the restriction that vacant property may not comprise more than 25% of the area of a newly-created TID, and excludes all tax-exempt city-owned property from the calculation of a TID's initial tax incremental base value.  
 
These four bills together with the three the Senate passed last week must now be taken up by the Assembly.  The bills have been referred to the Assembly Ways and Means committee for review and consideration. Staff for the chair of the committee, Rep. John Spiros (R-Marshfield), informed us last week that at least a couple of the TIF bills will be scheduled for a public hearing in early October, with hearing dates for the others to follow.

The last of the eight TIF study committee bills remaining in the Senate is SB 55. Sen. Duey Stroebel (R-Saukville) and a couple of other GOP senators have expressed concerns about this bill, which increases from 12% to 15% the maximum amount of a community's total equalized value that can be located in TIDs. Because of this opposition, it is unclear whether SB 55 will be scheduled for a floor vote in the Senate.

Sen. Stroebel's TIF Bill.  Meanwhile, Sen. Stroebel, will soon introduce a bill, LRB 2274, requiring municipalities to following additional procedurals steps before creating a new TID.  

Under the bill, any municipality creating a new TID would need to select and certify one of the following three options:
 
1) A majority of the expenses of the TID will be a developer-financed or "Pay-Go" arrangement in which the city enters into a contract with a developer requiring the developer to pay for the district improvements and the developer is repaid in cash from the increment generated.

2) The initial project plan of the TID projects that any public financing is completely paid off within 90% of the life of the TID, although the TID does in fact still have the full statutory length to repay any obligations.

3) The municipality limits itself from making any expenditures after the halfway point in the life of the TID unless approved by a unanimous joint review board.

Last session, when he was in the Assembly, Sen. Stroebel held up a bill allowing municipalities with poorly performing TIDs to require DOR to re-determine the base value of the district. The legislation advanced and became 2013 Act 183 only after an amendment sought by Sen. Stroebel was approved.  The amendment required communities to comply with the above procedural steps before being able to require DOR to recalculate a poorly performing TID's base value.  The amended version of SB 57, which the Senate unanimously passed last week, repeals the process created by 2013 Act 183 and replaces it with a different process for seeking re-determination of the base value of poorly performing
TIDs.

Senate Committee Holding Public Hearing on OPEB and BID Legislation Wednesday
  
 
On Wednesday at 11:00 the Senate Committee on Elections and Local Government will hold a public hearing in the Capitol on two bills affecting municipalities. The League has concerns about both bills:

1.  SB 203, Exempting the Residential Component of Mixed Use Buildings from Business Improvement District Special Assessments. The League has not yet formulated a position on this bill. Our Advisory Committee on Legislation will be reviewing it when it meets in a few weeks. We will be testifying for information purposes only at the hearing and passing along concerns about the bill that we have heard from our members. 

2.  SB 192Requiring Municipalities to Pre-fund Post Retirement Health Benefits provided to New Hires.  The League will testify in opposition to this bill.  Our testimony is posted on our web site, here.
Senate Committee Conducting Economic Development Round-tables around the State
  
  
 
The Senate Committee on Economic Development and Commerce is holding five round-tables on economic development beginning this Thursday. The meetings are open to the public, but the committee will hear testimony from invited guests only. The complete schedule is pasted below:

Thursday Sept. 24th 2pm
MATC-Oak Creek Campus
6665 South Howell Avenue
Oak Creek, WI 53154-1196
 
Monday Oct. 5th    2pm
Nicolet Area Technical College
5364 College Drive
Rhinelander, WI 54501
 
Thursday Oct. 8th 3pm
FVTC-D. J. Bordini Center
5 Systems Drive
P.O. Box 2277
Appleton, WI 54912-2277
 
Monday Oct. 12th   2pm
Dunn County Judicial Center
615 Stokke Parkway
Menomonie, WI 54751
 
Monday Oct. 26th 2pm
UW Platteville
1 University Plaza
Platteville, Wisconsin 53818-3099
Recently Introduced Legislation

SB 258Establishing a DOT Issued 2-year Driver's License for Undocumented Immigrants.  Under this bill, an applicant for a REAL ID noncompliant driver's license or identification card is not required to provide documentary proof that the applicant is a U.S. citizen or is otherwise lawfully present in the United States. If the applicant does not have a social security number, the applicant is required to provide verification only that he or she does not have one, rather than verification that he or she is not eligible for one. In processing an application for, and issuing or renewing, a REAL ID noncompliant driver's license or identification card, DOT may not include any question or require any proof or documentation as to whether the applicant is a U.S. citizen or is otherwise lawfully present in the United States. The bill does not change any current law requirements related to driver qualifications such as minimum age or successful completion of knowledge and driving skills tests.By Sen. Risser (D-Madison) The League has not yet taken a position on this bill.  Comment to the League on this bill.
Hearings on Municipal Bills 

SB 192, Requiring Municipalities to Pay Health Insurance Premiums for Surviving Spouse and Children of Law Enforcement Officers and EMTs who Die in the Line of Duty.  By Senate Committee on Elections and Local Government, Wednesday, September 23, at 11:00 a.m. in room 330 Southwest, State Capitol. The League is neutral on this bill. 

SB 203, Exempting the Residential Component of Mixed Use Buildings from Business Improvement District Special Assessments. By Senate Committee on Elections and Local Government, Wednesday, September 23, at 11:00 a.m. in room 330 Southwest, State Capitol. The League has not yet formed a position on this bill but we do have concerns about it which we will communicate to the committee.  

SB 213, Requiring Municipalities to Pre-fund Post Retirement Health Benefits provided to New HiresBy Senate Committee on Elections and Local Government, Wednesday, September 23, at 11:00 a.m. in room 330 Southwest, State Capitol. The League opposes this bill.  

AB 296, Distributing Excess Sales Tax Revenue Collected for the Lambeau Field Upgrade to Brown County and Municipalities within the County.  By Assembly Ways and Means Committee, Thursday, September 24, at 9:00 a.m. in room 328 Northwest, State Capitol. The League supports this bill.