Wisconsin Legislative Council AMENDMENT MEMO One Ea st Ma in Stre e t, Suite 401 • Ma dison, W I 53703 • (608) 266-1304 • le g.council@le gis.wisconsin.gov • http://www.le gis.wisconsin.gov/lc Memo published: May 23, 2023 Contact: Anna Henning, Principal Attorney 2023 Assembly Bill 245 Assembly Amendment 2 2023 ASSEMBLY BILL 245 2023 Assembly Bill 245: (1) modifies the state’s approach to shared revenue for counties and municipalities; (2) repeals Wisconsin’s personal property tax; and (3) authorizes the City of Milwaukee and Milwaukee County to impose sales and use taxes, primarily to address the city’s and county’s unfunded pension system liabilities. The bill also makes other changes to state law, including some provisions specific to the City of Milwaukee and Milwaukee County and other provisions that apply throughout the state. ASSEMBLY AMENDMENT 2 Assembly Amendment 2 generally retains the key changes made to current law by the bill, but with a number of modifications. Together with more technical changes, the amendment does all of the following: Modifies the formula for new supplemental aid to counties and municipalities, in part by: (1) for municipalities other than the City of Milwaukee and the City of Madison, increasing the minimum amount of supplemental aid to 15 percent, rather than 10 percent, of general aid; and (2) generally increasing aid to mid-size cities, as compared with the aid those cities would receive under the bill. Modifies maintenance of effort requirements for law enforcement, fire, and emergency medical services provided by counties and municipalities throughout the state, by: (1) removing criteria based on the numbers of citations and arrests; (2) instead requiring municipalities with populations greater than 20,000 to certify maintenance of effort for law enforcement by demonstrating a minimum level of total spending, percentage of spending, or number of positions; (3) adding exceptions to maintenance of effort requirements for positions funded with state or federal grants; and (4) refining limited exceptions to maintenance of effort requirements for counties and municipalities that have recently consolidated services. Narrows the application of certain supermajority voting requirements for certain spending decisions by the City of Milwaukee and Milwaukee County, by specifying that the requirements apply only if the city or county exercises the sales tax authority under the bill. Makes various modifications relating to the administration of the City of Milwaukee’s and Milwaukee County’s existing pension systems, including providing immunity for trustees and administrators of those systems from liability for complying with the bill’s requirements relating to pension system administration. - 2 - Provides more detailed procedures regarding appointments made to the Milwaukee Fire and Police Commission, and specifies that members of the commission’s board may not continue to serve after the expiration of their terms of office. Prohibits the City of Milwaukee and Milwaukee County from collectively bargaining with public safety employees on any terms of the existing city and county retirement systems. Narrows the scope of high school incident statistics required to be submitted by public high schools and high schools participating in parental choice programs, by requiring incidents to be reported if they occur during: (1) school hours; (2) a school-sanctioned event; or (3) the transportation of pupils to or from school, rather than a broader set of times and situations under the bill. Requires the Milwaukee School District to ensure that the 25 school resource officers required by the bill complete a 40-hour training course sponsored by the National Association of School Resource Officers. Modifies, rather than repeals, levy limit adjustments authorized as a result of transferring services from one county or municipality to another, by allowing such adjustments if the relevant units of local government file a notice with the Department of Revenue regarding the transfer of services. Provides a limited exception to a general prohibition on conducting local advisory referenda, to allow counties and municipalities to conduct advisory referenda regarding capital expenditures proposed to be funded with property tax revenue. Creates a new approach to adjusting municipalities’ levy limits upon the termination of tax increment districts, beginning with tax increment districts created in 2025. Modifies the limitation on orders issued by local public health officers to control outbreaks of communicable diseases, by: (1) lengthening the timeframe during which the orders may remain in effect, from 14 days to 30 days, with one 30-day extension possible with local government body approval; (2) applying the limitation to orders affecting places of worship, in addition to private businesses; and (3) prohibiting the orders from distinguishing between essential and non-essential businesses. Modifies the provisions relating to local regulation of quarry operations, including by more specifically applying certain restrictions to conditional use permits, in particular, and clarifying the bill’s application to circumstances in which a town ceases to be covered by county zoning or becomes subject to county zoning. Narrows the scope of changes made by the bill regarding local input for stewardship projects proposed for bonding authority by the Department of Natural Resources, by applying a local approval requirement for projects north of Highway 8 to only projects to acquire land, and by removing an expansion of other local input procedures to projects other than those for land acquisition. Creates an additional trust fund account for juvenile delinquency-related services (both community-based and correctional) in counties other than Milwaukee County. BILL HISTORY Representative Kurtz offered Assembly Amendment 2 to 2023 Assembly Bill 245 on May 17, 2023. On the same day, the Assembly voted to adopt the amendment on a voice vote. The Assembly then voted to - 3 - pass the bill, as amended, on a vote of Ayes, 56; and Noes, 36, with four paired votes and two members not voting. For a full history of the bill, visit the Legislature’s bill history page. AH:jal