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2023 - 2024 LEGISLATURE
2023 SENATE BILL 572
October 23, 2023 - Introduced by Senators CABRAL-GUEVARA, BALLWEG, L. JOHNSON
and TAYLOR, cosponsored by Representatives DONOVAN, DRAKE, C. ANDERSON,
CONSIDINE, GOYKE, JOERS, OHNSTAD and STEFFEN. Referred to Committee on
Government Operations.
AN ACT to renumber and amend 66.1110 (4) (c); to amend 66.1109 (2) (c),
66.1109 (2m) (c), 66.1109 (4m) (c), 66.1110 (3) (c), 66.1110 (3) (e), 66.1110 (4m)
(c), 66.1110 (5) and 66.1110 (6) (b) 3.; and to create 66.1109 (1) (ce), 66.1109 (3)
(e), 66.1109 (6), 66.1110 (4) (c) 1., 66.1110 (4) (c) 2., 66.1110 (4) (cg), 66.1110 (4)
(cr) and 66.1110 (4) (e) of the statutes; relating to: multijurisdictional business
improvement districts, annual reports for neighborhood improvement
districts, and certain notifications for neighborhood improvement districts and
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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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
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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:
SECTION 1. 66.1109 (1) (ce) of the statutes is created to read:
66.1109 (1) (ce) “Commission" means a commission created by 2 or more
municipalities by contract under s. 66.0301 to act as a board under this section for
a multijurisdictional business improvement district as described under sub. (6).
SECTION 2. 66.1109 (2) (c) of the statutes is amended to read:
66.1109 (2) (c) At least 30 days before creation of the business improvement
district and adoption of its initial operating plan by the municipality, the planning
commission has held a public hearing on its proposed business improvement district
and initial operating plan. Notice of the hearing shall be published as a class 2 notice
under ch. 985. Before publication, a copy of the notice together with a copy of the
proposed initial operating plan and a copy of a detail map showing the boundaries
of the proposed business improvement district shall be sent by certified 1st class mail
to all owners of real property within the proposed business improvement district.
The notice shall state the boundaries of the proposed business improvement district
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SECTION 2 SENATE BILL 572
and shall indicate that copies of the proposed initial operating plan are available
from the planning commission on request.
SECTION 3. 66.1109 (2m) (c) of the statutes is amended to read:
66.1109 (2m) (c) At least 30 days before annexation of the territory, the
planning commission has held a public hearing on the proposed annexation. Notice
of the hearing shall be published as a class 2 notice under ch. 985. Before publication,
a copy of the notice together with a copy of a detail map showing the boundaries of
the territory proposed to be annexed to the business improvement district shall be
sent by certified 1st class mail to all owners of real property within the territory
proposed to be annexed. The notice shall state the boundaries of the territory
proposed to be annexed.
SECTION 4. 66.1109 (3) (e) of the statutes is created to read:
66.1109 (3) (e) With regard to any 1st class mailings that are required to be sent
under this section:
1. The mailings shall be sent by the municipality itself or by a mailing house
service selected by the municipality.
2. The municipality may fulfill any notification requirements by sending only
one notice to any person who owns multiple properties within the business
improvement district. The notice shall list all affected properties or parcels owned
by the person.
3. The municipality shall ensure that a statement appears on the face of the
envelope indicating that the correspondence is official business improvement
district business.
SECTION 5. 66.1109 (4m) (c) of the statutes is amended to read:
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SECTION 5
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66.1109 (4m) (c) Within 30 days after the filing of a petition under this
subsection, the planning commission shall hold a public hearing on the proposed
termination. Notice of the hearing shall be published as a class 2 notice under ch.
985. Before publication, a copy of the notice together with a copy of the operating plan
and a copy of a detail map showing the boundaries of the business improvement
district shall be sent by certified 1st class mail to all owners of real property within
the business improvement district. The notice shall state the boundaries of the
business improvement district and shall indicate that copies of the operating plan
are available from the planning commission on request.
SECTION 6. 66.1109 (6) of the statutes is created to read:
66.1109 (6) (a) Subject to the requirements of this section and the modifications
of the requirements in this subsection, 2 or more municipalities may jointly create
a single multijurisdictional business improvement district under this section if all
of the following apply:
1. The district's borders contain territory in all of the municipalities that are
a part of the district.
2. The district is contiguous.
3. At least one parcel in each participating municipality touches at least one
parcel in at least one of the other municipalities.
4. At least one owner of real property used for commercial purposes in each of
the municipalities that are a part of the district takes the action described in sub. (2)
(a).
5. The planning commission of each of the municipalities that are a part of the
district adopts under sub. (2) (b) identical initial operating plans for the district.
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6. The local legislative body of each of the municipalities that are a part of the
district adopts under sub. (2) (e) identical initial operating plans for each
municipality.
(b) 1. The hearing described under sub. (2) (c) may be a joint hearing held by
all of the involved planning commissions.
2. Each municipality that is a part of the district shall be responsible for
complying with the notice requirements described under sub. (3) (e) for property or
parcels that are located within its own jurisdiction and for determining whether the
thresholds described in subs. (2) (d) and (4m) are met with regard to owners of
property that is located within its own jurisdiction.
3. The chief executive officers of each of the municipalities that are a part of the
district shall enter into an agreement that specifies how the members of the board
shall be appointed under sub. (3) (a). All board members shall be confirmed by each
local legislative body.
4. The board, or each municipality that is a part of the district, shall conduct
all functions described under sub. (3) except that to take effect, any actions that
require local legislative body approval under sub. (3) must be approved by the local
legislative body of each of the municipalities that is a part of the district. If one or
more local legislative bodies fail to approve an item that must be so approved, as
described in sub. (3), before the first day of the 7th month beginning after the first
local legislative body approves the item, the district shall terminate.
5. Each municipality shall be responsible, as described under sub. (4), for
imposing, collecting, and depositing special assessments for those parts of the
district's property that are located within its own jurisdiction, and for depositing all
other appropriations or other moneys received by the municipality, as described
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SECTION 6
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under sub. (4), that relate to property that is located within its own jurisdiction.
Funds collected by each municipality that is a part of the district shall be deposited
by that municipality into a segregated account at a financial institution of the
municipality's choice.
6. A multijurisdictional business improvement district may not be converted
into a neighborhood improvement district under sub. (4g).
SECTION 7. 66.1110 (3) (c) of the statutes is amended to read:
66.1110 (3) (c) At least 30 days before creation of the neighborhood
improvement district and adoption of its initial operating plan by the municipality,
the planning commission has held a public hearing on its proposed neighborhood
improvement district and initial operating plan. Notice of the hearing shall be
published as a class 2 notice under ch. 985. Before publication, a copy of the notice,
together with a copy of the proposed initial operating plan and a copy of a detail map
showing the boundaries of the proposed neighborhood improvement district, shall be
sent by certified 1st class mail to all owners of real property within the proposed
neighborhood improvement district. The notice shall state the boundaries of the
proposed neighborhood improvement district and shall indicate that copies of the
proposed initial operating plan are available from the planning commission on
request.
SECTION 8. 66.1110 (3) (e) of the statutes is amended to read:
66.1110 (3) (e) The local legislative body has voted to adopt the proposed initial
operating plan for the neighborhood improvement district. The local legislative body
shall publish a class 2 notice under ch. 985 regarding the meeting at which the local
legislative body will vote on whether to adopt the proposed initial operating plan for
the neighborhood improvement district. Before publication, a copy of the notice shall
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SECTION 8 SENATE BILL 572
be sent by certified 1st class mail to all owners of real property within the proposed
neighborhood improvement district.
SECTION 9. 66.1110 (4) (c) of the statutes is renumbered 66.1110 (4) (c) (intro.)
and amended to read:
66.1110 (4) (c) (intro.) The board shall prepare and make available to the public
annual reports describing the current status of the neighborhood improvement
district, including expenditures and revenues. The report shall include an
independent certified audit of the implementation of the operating plan obtained by
the municipality. The municipality shall obtain an additional independent certified
audit upon termination of the neighborhood improvement district. any of the
following:
SECTION 10. 66.1110 (4) (c) 1. of the statutes is created to read:
66.1110 (4) (c) 1. If the cash balance in the segregated account described under
sub. (5) equaled or exceeded $300,000 at any time during the period covered by the
report, the municipality shall obtain an independent certified audit of the
implementation of the operating plan.
SECTION 11. 66.1110 (4) (c) 2. of the statutes is created to read:
66.1110 (4) (c) 2. If the cash balance in the segregated account described under
sub. (5) was less than $300,000 at all times during the period covered by the report,
the municipality shall obtain a reviewed financial statement for the most recently
completed fiscal year. The statement shall be prepared in accordance with generally
accepted accounting principles and include a review of the financial statement by an
independent certified public accountant.
SECTION 12. 66.1110 (4) (cg) of the statutes is created to read:
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SECTION 12
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66.1110 (4) (cg) For calendar years beginning after December 31, 2023, the
dollar amount at which a municipality is required to obtain an independent certified
audit under par. (c) 1. and the dollar amount at which a municipality is required to
obtain a reviewed financial statement under par. (c) 2. shall be increased each year
by a percentage equal to the percentage change between the U.S. consumer price
index for all urban consumers, U.S. city average, for the month of August of the
previous year and the U.S. consumer price index for all urban consumers, U.S. city
average, for the month of August 2022, as determined by the federal department of
labor. Each amount that is revised under this paragraph shall be rounded to the
nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised
amount is a multiple of $5, such an amount shall be increased to the next higher
multiple of $10.
SECTION 13. 66.1110 (4) (cr) of the statutes is created to read:
66.1110 (4) (cr) The municipality shall obtain an additional independent
certified audit of the implementation of the operating plan upon termination of the
neighborhood improvement district.
SECTION 14. 66.1110 (4) (e) of the statutes is created to read:
66.1110 (4) (e) With regard to any 1st class mailings that are required to be sent
under this section:
1. The mailings shall be sent by the municipality itself or by a mailing house
service selected by the municipality.
2. The municipality may fulfill any notification requirements by sending only
one notice to any person who owns multiple properties within the neighborhood
improvement district. The notice shall list all affected properties or parcels owned
by the person.
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SECTION 14 SENATE BILL 572
3. The municipality shall ensure that a statement appears on the face of the
envelope indicating that the correspondence is official neighborhood improvement
district business.
SECTION 15. 66.1110 (4m) (c) of the statutes is amended to read:
66.1110 (4m) (c) At least 30 days before annexation, the planning commission
has held a public hearing on the proposed annexation. Notice of the hearing shall
be published as a class 2 notice under ch. 985. Before publication, a copy of the notice,
together with a copy of a detail map showing the boundaries of the territory proposed
to be annexed to the neighborhood improvement district, shall be sent by certified
1st class mail to all owners of real property within the territory proposed to be
annexed. The notice shall state the boundaries of the territory proposed to be
annexed.
SECTION 16. 66.1110 (5) of the statutes is amended to read:
66.1110 (5) All special assessments received from a neighborhood
improvement district and all other appropriations by the municipality or other
moneys received for the benefit of the neighborhood improvement district shall be
placed in a segregated account in the municipal treasury. No disbursements from
the account may be made except to reimburse the municipality for appropriations
other than special assessments, to pay the costs of audits and reviewed financial
statements required under sub. (4) (c) or on order of the board for the purpose of
implementing the operating plan. On termination of the neighborhood improvement
district by the municipality, all moneys collected by special assessment remaining in
the account shall be disbursed to the owners of specially assessed property in the
neighborhood improvement district, in the same proportion as the last collected
special assessment.
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SECTION 17
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SECTION 17. 66.1110 (6) (b) 3. of the statutes is amended to read:
66.1110 (6) (b) 3. Within 30 days after the filing of a petition under par. (a) 1.
or 2., the planning commission shall hold a public hearing on the proposed
termination. Within 30 days after the deadline for filing a petition under par. (a) 3.
passes, the planning commission shall hold a public hearing on the proposed
termination. Notice of the hearing shall be published as a class 2 notice under ch.
985. Before publication, a copy of the notice, together with a copy of a detail map
showing the boundaries of the neighborhood improvement district, shall be sent by
certified 1st class mail to all owners of real property within the neighborhood
improvement district. The notice shall state the boundaries of the neighborhood
improvement district and shall indicate that copies of the operating plan are
available from the planning commission on request and are posted in the building
in which the municipality's governing body regularly holds its meetings.
SECTION 18.0Initial applicability.
(1) With regard to notices that are required to be sent, this act first applies to
notices that are sent on the effective date of this subsection.
(END)
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