This is the preview version of the Wisconsin State Legislature site.
Please see http://docs.legis.wisconsin.gov for the production version.
LRB-2146/1
KP:emw
2017 - 2018 LEGISLATURE
June 30, 2017 - Introduced by Representatives Genrich, Steffen, Berceau,
Bowen, R. Brooks, Goyke, Hintz, Kooyenga, Schraa, Spreitzer, Spiros,
Thiesfeldt and Vorpagel, cosponsored by Senators LeMahieu, Hansen,
Feyen, Ringhand and L. Taylor. Referred to Committee on Ways and Means.
AB420,1,4 1An Act to renumber and amend 66.1109 (3) (c); to amend 66.1109 (4); and to
2create
66.1109 (3) (c) 1., 66.1109 (3) (c) 2., 66.1109 (3) (cg) and 66.1109 (3) (cr)
3of the statutes; relating to: public annual reports of business improvement
4districts.
Analysis by the Legislative Reference Bureau
This bill modifies the current law requirement for the board of a business
improvement district (BID) to include an independent certified audit in its annual
report describing the current status of the BID. Under current law, based on the
receipt of a petition from certain business owners in a designated area of a city,
village, or town (municipality), a municipality may create a BID, which consists of
contiguous parcels of land. A BID is governed by a board, whose members are
appointed by the creating municipality's chief executive officer (mayor, city manager,
village president, or town board chair). The board is required to 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.
The creating municipality may impose special assessments on the property in
the BID, and may appropriate other money to the BID. All such funds must be placed
in a segregated account. Generally, the funds in the account must be spent for the
benefit of the BID to put into effect its operating plan, and to pay for certain required
audits. Generally, the board determines how such funds are spent. The creating
municipality may terminate the BID by following certain procedures that are
specified in the statutes.

The bill requires the board of a BID 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 instead of an independent certified audit. If
the cash balance equaled or exceeded $300,000 at any time during the prior fiscal
year, the BID is required to include an independent certified audit in its annual
report.
Under the bill, 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. Current law
requires a BID's board to include an independent certified audit in its mandatory
public annual report describing the current status of the BID, irrespective of the cash
balance in the BID's segregated account.
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:
AB420,1 1Section 1. 66.1109 (3) (c) of the statutes is renumbered 66.1109 (3) (c) (intro.)
2and amended to read:
AB420,2,83 66.1109 (3) (c) (intro.) The board shall prepare and make available to the public
4annual reports describing the current status of the business improvement district,
5including expenditures and revenues. The report shall include an independent
6certified audit of the implementation of the operating plan obtained by the
7municipality. The municipality shall obtain an additional independent certified
8audit upon termination of the business improvement district.
one of the following:
AB420,2 9Section 2. 66.1109 (3) (c) 1. of the statutes is created to read:
AB420,2,1310 66.1109 (3) (c) 1. If the cash balance in the segregated account described under
11sub. (4) equaled or exceeded $300,000 at any time during the period covered by the
12report, the municipality shall obtain an independent certified audit of the
13implementation of the operating plan.
AB420,3 14Section 3. 66.1109 (3) (c) 2. of the statutes is created to read:
AB420,3,6
166.1109 (3) (c) 2. If the cash balance in the segregated account described under
2sub. (4) was less than $300,000 at all times during the period covered by the report,
3the municipality shall obtain a reviewed financial statement for the most recently
4completed fiscal year. The statement shall be prepared in accordance with generally
5accepted accounting principles and include a review of the financial statement by an
6independent certified public accountant.
AB420,4 7Section 4. 66.1109 (3) (cg) of the statutes is created to read:
AB420,3,198 66.1109 (3) (cg) For calendar years beginning after December 31, 2018, the
9dollar amount at which a municipality is required to obtain an independent certified
10audit under par. (c) 1. and the dollar amount at which a municipality is required to
11obtain a reviewed financial statement under par. (c) 2. shall be increased each year
12by a percentage equal to the percentage change between the U.S. consumer price
13index for all urban consumers, U.S. city average, for the month of August of the
14previous year and the U.S. consumer price index for all urban consumers, U.S. city
15average, for the month of August 2017, as determined by the federal department of
16labor. Each amount that is revised under this paragraph shall be rounded to the
17nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised
18amount is a multiple of $5, such an amount shall be increased to the next higher
19multiple of $10.
AB420,5 20Section 5. 66.1109 (3) (cr) of the statutes is created to read:
AB420,3,2321 66.1109 (3) (cr) The municipality shall obtain an additional independent
22certified audit of the implementation of the operating plan upon termination of the
23business improvement district.
AB420,6 24Section 6. 66.1109 (4) of the statutes is amended to read:
AB420,4,12
166.1109 (4) All special assessments received from a business improvement
2district and all other appropriations by the municipality or other moneys received
3for the benefit of the business improvement district shall be placed in a segregated
4account in the municipal treasury. No disbursements from the account may be made
5except to reimburse the municipality for appropriations other than special
6assessments, to pay the costs of audits and reviewed financial statements required
7under sub. (3) (c), or on order of the board for the purpose of implementing the
8operating plan. On termination of the business improvement district by the
9municipality, all moneys collected by special assessment remaining in the account
10shall be disbursed to the owners of specially assessed property in the business
11improvement district, in the same proportion as the last collected special
12assessment.
AB420,4,1313 (End)
Loading...
Loading...