2023 - 2024 LEGISLATURE
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2023 ASSEMBLY BILL 622
November 8, 2023 - Introduced by Representatives DONOVAN, DRAKE, JOERS, C.
ANDERSON, CONSIDINE, GOYKE, OHNSTAD and STEFFEN, cosponsored by Senators
CABRAL-GUEVARA, BALLWEG, L. JOHNSON and TAYLOR. Referred to Committee on
Local Government.
1 AN ACT to renumber and amend 66.1110 (4) (c); to amend 66.1109 (2) (c),
2 66.1109 (2m) (c), 66.1109 (4m) (c), 66.1110 (3) (c), 66.1110 (3) (e), 66.1110 (4m)
3 (c), 66.1110 (5) and 66.1110 (6) (b) 3.; and to create 66.1109 (1) (ce), 66.1109 (3)
4 (e), 66.1109 (6), 66.1110 (4) (c) 1., 66.1110 (4) (c) 2., 66.1110 (4) (cg), 66.1110 (4)
5 (cr) and 66.1110 (4) (e) of the statutes; relating to: multijurisdictional business
6 improvement districts, annual reports for neighborhood improvement
7 districts, and certain notifications for neighborhood improvement districts and
8 business improvement districts.
Analysis by the Legislative Reference Bureau
This bill authorizes two or more municipalities to create a single
multijurisdictional business improvement district and makes several other changes
to the statutes governing business improvement districts (BIDs) and neighborhood
improvement districts (NIDs).
Under current law, upon the receipt of a petition from certain business owners
in a designated area of a municipality, a municipality may create a BID. A BID is
governed by a board, whose members are appointed by the creating municipality's
chief executive officer. The board must adopt an initial operating plan for the BID,
and may make changes to the operating plan each year, subject to the approval of the
municipality's governing body.
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ASSEMBLY BILL 622
Under current law, upon being petitioned to do so by an owner of real property
that is located in the proposed NID, a municipality may create an NID. In general,
an NID is an area within a municipality consisting of parcels that are near to one
another, but not necessarily contiguous, at least some of which are used for
residential purposes and subject to general real estate taxes, and may include
property that is acquired and owned by the NID board. An NID is governed by a
board, whose members are elected. A municipality may adopt an initial operating
plan for the NID, and the board may annually make changes to the operating plan,
subject to the approval of the municipality's governing body.
The creating municipality may impose special assessments on the property in
a BID or an NID, and may appropriate other money to the BID or NID. These funds
must be placed in a segregated account and must be spent on implementing the BID's
or NID's operating plan and paying for certain required audits. Generally, the boards
determine how funds are spent. The creating municipality may also terminate a BID
or an NID by following certain procedures that are specified in the statutes.
Under current law, the state, regional planning commissions, federally
recognized Indian tribes and bands, and local units of government, including
municipalities, counties, school districts, and other special purpose districts, may
enter into intergovernmental cooperation agreements for services or joint exercise
of powers. As part of an intergovernmental cooperation agreement, these units of
government may create a commission to perform the service or exercise the joint
power.
Subject to a number of conditions, this bill authorizes two or more
municipalities to create a single multijurisdictional BID. The conditions include a
requirement that the BID's borders contain contiguous territory in all of the
municipalities that are party to the agreement creating the multijurisdictional BID.
A multijurisdictional BID is governed by a single board whose members are
appointed by the chief executive officers of each of the municipalities that are part
of the multijurisdictional BID and confirmed by the relevant local legislative bodies.
Actions taken by the board that require local legislative body approval, however,
must be approved by the relevant local legislative bodies.
Under the bill, each municipality that is a part of the multijurisdictional BID
must impose, collect, and deposit into its own municipal treasury all special
assessments or other funds that relate to properties that are located within its own
jurisdiction. Also under the bill, each municipality that is a part of the
multijurisdictional BID must provide any required notices to all property owners
whose property is located within its own jurisdiction.
With regard to a BID, current law requires a board that had a cash balance of
less than $300,000 at all times during the prior fiscal year to include a reviewed
financial statement in its public annual report. If the cash balance equals or exceeds
$300,000 at any time during the prior fiscal year, the BID must include an
independent certified audit in its annual report. The reviewed financial statement
must be prepared in accordance with generally accepted accounting principles and
include a review of the financial statement by an independent certified public
accountant.
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ASSEMBLY BILL 622
Current law requires an NID's board to include an independent certified audit
in its mandatory public annual report describing the current status of the NID,
irrespective of the cash balance in the NID's segregated account. Under this bill, the
financial statement and audit requirements that currently apply to a BID apply in
the same way to an NID.
Finally, for BIDs and NIDs, the bill changes the requirement that certain
notices be sent by certified mail to a requirement that they must be sent by first class
mail. In addition, if a person to whom a notice must be sent owns multiple properties
in the BID or NID, the municipality may fulfill its notice requirements by sending
only one notice to the person. The notice must list all the affected properties or
parcels owned by the person.
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:
1 SECTION 1. 66.1109 (1) (ce) of the statutes is created to read:
2 66.1109 (1) (ce) “Commission" means a commission created by 2 or more
3 municipalities by contract under s. 66.0301 to act as a board under this section for
4 a multijurisdictional business improvement district as described under sub. (6).
5 SECTION 2. 66.1109 (2) (c) of the statutes is amended to read:
6 66.1109 (2) (c) At least 30 days before creation of the business improvement
7 district and adoption of its initial operating plan by the municipality, the planning
8 commission has held a public hearing on its proposed business improvement district
9 and initial operating plan. Notice of the hearing shall be published as a class 2 notice
10 under ch. 985. Before publication, a copy of the notice together with a copy of the
11 proposed initial operating plan and a copy of a detail map showing the boundaries
12 of the proposed business improvement district shall be sent by certified 1st class mail
13 to all owners of real property within the proposed business improvement district.
14 The notice shall state the boundaries of the proposed business improvement district
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ASSEMBLY BILL 622 SECTION 2
1 and shall indicate that copies of the proposed initial operating plan are available
2 from the planning commission on request.
3 SECTION 3. 66.1109 (2m) (c) of the statutes is amended to read:
4 66.1109 (2m) (c) At least 30 days before annexation of the territory, the
5 planning commission has held a public hearing on the proposed annexation. Notice
6 of the hearing shall be published as a class 2 notice under ch. 985. Before publication,
7 a copy of the notice together with a copy of a detail map showing the boundaries of
8 the territory proposed to be annexed to the business improvement district shall be
9 sent by certified 1st class mail to all owners of real property within the territory
10 proposed to be annexed. The notice shall state the boundaries of the territory
11 proposed to be annexed.
12 SECTION 4. 66.1109 (3) (e) of the statutes is created to read:
13 66.1109 (3) (e) With regard to any 1st class mailings that are required to be sent
14 under this section:
15 1. The mailings shall be sent by the municipality itself or by a mailing house
16 service selected by the municipality.
17 2. The municipality may fulfill any notification requirements by sending only
18 one notice to any person who owns multiple properties within the business
19 improvement district. The notice shall list all affected properties or parcels owned
20 by the person.
21 3. The municipality shall ensure that a statement appears on the face of the
22 envelope indicating that the correspondence is official business improvement
23 district business.
24 SECTION 5. 66.1109 (4m) (c) of the statutes is amended to read:
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ASSEMBLY BILL 622 SECTION 5
1 66.1109 (4m) (c) Within 30 days after the filing of a petition under this
2 subsection, the planning commission shall hold a public hearing on the proposed
3 termination. Notice of the hearing shall be published as a class 2 notice under ch.
4 985. Before publication, a copy of the notice together with a copy of the operating plan
5 and a copy of a detail map showing the boundaries of the business improvement
6 district shall be sent by certified 1st class mail to all owners of real property within
7 the business improvement district. The notice shall state the boundaries of the
8 business improvement district and shall indicate that copies of the operating plan
9 are available from the planning commission on request.
10 SECTION 6. 66.1109 (6) of the statutes is created to read:
11 66.1109 (6) (a) Subject to the requirements of this section and the modifications
12 of the requirements in this subsection, 2 or more municipalities may jointly create
13 a single multijurisdictional business improvement district under this section if all
14 of the following apply:
15 1. The district's borders contain territory in all of the municipalities that are
16 a part of the district.
17 2. The district is contiguous.
18 3. At least one parcel in each participating municipality touches at least one
19 parcel in at least one of the other municipalities.
20 4. At least one owner of real property used for commercial purposes in each of
21 the municipalities that are a part of the district takes the action described in sub. (2)
22 (a).
23 5. The planning commission of each of the municipalities that are a part of the
24 district adopts under sub. (2) (b) identical initial operating plans for the district.
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ASSEMBLY BILL 622 SECTION 6
1 6. The local legislative body of each of the municipalities that are a part of the
2 district adopts under sub. (2) (e) identical initial operating plans for each
3 municipality.
4 (b) 1. The hearing described under sub. (2) (c) may be a joint hearing held by
5 all of the involved planning commissions.
6 2. Each municipality that is a part of the district shall be responsible for
7 complying with the notice requirements described under sub. (3) (e) for property or
8 parcels that are located within its own jurisdiction and for determining whether the
9 thresholds described in subs. (2) (d) and (4m) are met with regard to owners of
10 property that is located within its own jurisdiction.
11 3. The chief executive officers of each of the municipalities that are a part of the
12 district shall enter into an agreement that specifies how the members of the board
13 shall be appointed under sub. (3) (a). All board members shall be confirmed by each
14 local legislative body.
15 4. The board, or each municipality that is a part of the district, shall conduct
16 all functions described under sub. (3) except that to take effect, any actions that
17 require local legislative body approval under sub. (3) must be approved by the local
18 legislative body of each of the municipalities that is a part of the district. If one or
19 more local legislative bodies fail to approve an item that must be so approved, as
20 described in sub. (3), before the first day of the 7th month beginning after the first
21 local legislative body approves the item, the district shall terminate.
22 5. Each municipality shall be responsible, as described under sub. (4), for
23 imposing, collecting, and depositing special assessments for those parts of the
24 district's property that are located within its own jurisdiction, and for depositing all
25 other appropriations or other moneys received by the municipality, as described
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ASSEMBLY BILL 622 SECTION 6
1 under sub. (4), that relate to property that is located within its own jurisdiction.
2 Funds collected by each municipality that is a part of the district shall be deposited
3 by that municipality into a segregated account at a financial institution of the
4 municipality's choice.
5 6. A multijurisdictional business improvement district may not be converted
6 into a neighborhood improvement district under sub. (4g).
7 SECTION 7. 66.1110 (3) (c) of the statutes is amended to read:
8 66.1110 (3) (c) At least 30 days before creation of the neighborhood
9 improvement district and adoption of its initial operating plan by the municipality,
10 the planning commission has held a public hearing on its proposed neighborhood
11 improvement district and initial operating plan. Notice of the hearing shall be
12 published as a class 2 notice under ch. 985. Before publication, a copy of the notice,
13 together with a copy of the proposed initial operating plan and a copy of a detail map
14 showing the boundaries of the proposed neighborhood improvement district, shall be
15 sent by certified 1st class mail to all owners of real property within the proposed
16 neighborhood improvement district. The notice shall state the boundaries of the
17 proposed neighborhood improvement district and shall indicate that copies of the
18 proposed initial operating plan are available from the planning commission on
19 request.
20 SECTION 8. 66.1110 (3) (e) of the statutes is amended to read:
21 66.1110 (3) (e) The local legislative body has voted to adopt the proposed initial
22 operating plan for the neighborhood improvement district. The local legislative body
23 shall publish a class 2 notice under ch. 985 regarding the meeting at which the local
24 legislative body will vote on whether to adopt the proposed initial operating plan for
25 the neighborhood improvement district. Before publication, a copy of the notice shall
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ASSEMBLY BILL 622 SECTION 8
1 be sent by certified 1st class mail to all owners of real property within the proposed
2 neighborhood improvement district.
3 SECTION 9. 66.1110 (4) (c) of the statutes is renumbered 66.1110 (4) (c) (intro.)
4 and amended to read:
5 66.1110 (4) (c) (intro.) The board shall prepare and make available to the public
6 annual reports describing the current status of the neighborhood improvement
7 district, including expenditures and revenues. The report shall include an
8 independent certified audit of the implementation of the operating plan obtained by
9 the municipality. The municipality shall obtain an additional independent certified
10 audit upon termination of the neighborhood improvement district. any of the
11 following:
12 SECTION 10. 66.1110 (4) (c) 1. of the statutes is created to read:
13 66.1110 (4) (c) 1. If the cash balance in the segregated account described under
14 sub. (5) equaled or exceeded $300,000 at any time during the period covered by the
15 report, the municipality shall obtain an independent certified audit of the
16 implementation of the operating plan.
17 SECTION 11. 66.1110 (4) (c) 2. of the statutes is created to read:
18 66.1110 (4) (c) 2. If the cash balance in the segregated account described under
19 sub. (5) was less than $300,000 at all times during the period covered by the report,
20 the municipality s