Amendment SSA1-AB438

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2023 - 2024 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 438

November 14, 2023 - Offered by Senator Feyen.

AB438-SSA1,2,4 An Act to repeal 77.70 (2) (b) 2., 77.705, 77.707 (1), 77.76 (6), 229.64 (2), 229.65 (7), 229.66 (2) (c), 229.68 (11), 229.68 (15) and 229.682 (3); to renumber 77.707 (2); to renumber and amend 77.70 (2) (b) 1. and 229.64 (1); to amend 16.58 (3), 77.54 (41), 77.70 (2) (a), 77.707 (1), 77.71 (intro.), (1), (2), (3), (4) and (5), 79.037 (2) (intro.), 79.037 (3), 229.65 (1), 229.66 (2) (a), 229.66 (2) (b), 229.66 (2) (g), 229.66 (4), 229.67, 229.68 (intro.), 229.68 (4) (b), 229.68 (4) (d), 229.68 (7), 229.68 (9), 229.68 (12), 229.68 (13), 229.68 (16) (intro.), 229.68 (16) (a), 229.682 (1), 229.682 (4), 229.682 (7), 229.685 (1), 229.69 (4), 229.71, 229.75 (3), 229.76 and 341.14 (6r) (b) 13. b.; to repeal and recreate 229.66 (3); and to create 13.94 (1) (z), 13.94 (1s) (c) 10., 16.09, 25.17 (1) (es), 59.90 (7), 77.54 (9a) (gm), 77.70 (2) (b) 1m. to 3m., 79.037 (4), 229.65 (6m), 229.66 (2) (bm), 229.66 (2) (cm), 229.66 (2) (gm), 229.68 (8) (d), 229.68 (8m), 229.6802, 229.6805, 229.682 (9), 229.682 (10), 229.682 (11), 229.682 (12), 229.685 (3), 229.687, 229.695, 229.80 and 229.805 of the statutes; relating to: baseball park district administration, funding for improvement of professional baseball park facilities, use of the Milwaukee County sales tax, expiration of the Milwaukee County sales tax, and Milwaukee County pension obligation bonds.

Analysis by the Legislative Reference Bureau

This substitute amendment incorporates Senate Amendment 1 and makes the following additional changes:

1. For most tickets, the ticket surcharge is, from 2024 to 2032, $2; from 2033 to 2041, $3; and, from 2042 to 2050, $4.

2. For tickets that entitle the holder to access a stadium luxury box or suite, the ticket surcharge is, from 2024 to 2032, $8; from 2033 to 2041, $9; and, from 2042 to 2050, $10.

3. As in SA1, surcharge moneys are deposited into the baseball park facilities improvement segregated fund. Under this substitute amendment, however, once the Department of Administration notifies the professional baseball park district that all state grant annual payments have been made, the district must annually transfer ticket surcharge moneys from the segregated fund to the state for deposit into the state's general fund.

4. The district board is expanded by four additional members, one appointed by the senate majority leader, one by the speaker of the assembly, and two appointed by the governor. The governor's additional appointments must be selected from lists provided by each of the City of Milwaukee and Milwaukee County.

5. The members appointed by the governor at the governor's sole discretion and the member appointed by the governor from a list provided by the professional baseball team are not subject to senate confirmation.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB438-SSA1,1 Section 1. 13.94 (1) (z) of the statutes is created to read:

AB438-SSA1,2,10 13.94 (1) (z) After the end of each fiscal biennium, concluding with the 2049-51 fiscal biennium, conduct a financial audit of a local professional baseball park district created under subch. III of ch. 229. The legislative audit bureau shall file a copy of each audit report under this paragraph with the distributees specified in par. (b).

AB438-SSA1,2 Section 2. 13.94 (1s) (c) 10. of the statutes is created to read:

AB438-SSA1,3,4 13.94 (1s) (c) 10. A local professional baseball park district created under subch. III of ch. 229 for the cost of the audit required to be performed under sub. (1) (z).

AB438-SSA1,3 Section 3 . 16.09 of the statutes is created to read:

AB438-SSA1,3,15 16.09 Grant to a local professional baseball park district; short-term loans. (1) Public purpose. The legislature finds and determines that baseball park facilities encourage economic development and tourism in this state, reduce unemployment in this state, preserve business activities within this state, generate additional tax revenues that would not exist without the baseball park facilities, and bring needed capital into this state for the benefit and welfare of people throughout the state. It is therefore in the public interest and serves a statewide public purpose, and it is the public policy of this state, to assist a local professional baseball park district created under subch. III of ch. 229 in the development, construction, improvement, repair, and maintenance of baseball park facilities.

AB438-SSA1,3,16 (2) Definitions. In this section:

AB438-SSA1,3,17 (a) “Baseball park facilities” has the meaning given in s. 229.65 (1).

AB438-SSA1,3,18 (b) “District” has the meaning given in s. 229.65 (5).

AB438-SSA1,3,23 (c) “Gap payment” means payment of the amount specified in sub. (3) (a), which is intended to substantially equal the total estimated taxes imposed under ch. 71 in calendar years 2021, 2022, and 2023 on the payroll of the professional baseball team and of visiting professional baseball franchises using the professional baseball park facilities.

AB438-SSA1,3,24 (d) “Professional baseball team” has the meaning given in s. 229.65 (6m).

AB438-SSA1,4,3 (3) Grant. Subject to sub. (4), the department shall award a grant to a district to assist in the development, construction, improvement, repair, and maintenance of baseball park facilities. The grant shall consist of the following:

AB438-SSA1,4,5 (a) The gap payment of $35,800,000 upon execution of the lease and nonrelocation agreements satisfying s. 229.6802.

AB438-SSA1,4,10 (b) The payment of $25,000,000 upon execution of the lease and nonrelocation agreements satisfying s. 229.6802. The district shall maintain the moneys paid under this paragraph in a separate account in the baseball park facilities improvement segregated fund established under s. 229.687 and may expend the moneys only for the purpose of winterizing the baseball park facilities.

AB438-SSA1,4,12 (c) Twenty consecutive annual payments beginning in 2024, subject to the following:

AB438-SSA1,4,13 1. The initial payment in 2024 shall equal $13,400,000.

AB438-SSA1,4,16 2. Except as provided in subd. 3., the amount of each subsequent annual payment shall increase from the initial payment at the rate of 4 percent per year compounded annually.

AB438-SSA1,4,18 3. No annual payment may exceed $20,000,000, and beginning on July 1, 2041, no annual payment may exceed $10,000,000.

AB438-SSA1,4,20 4. No annual payment may be made after expiration or termination of the lease specified in s. 229.6802 (1).

AB438-SSA1,4,23 5. Beginning with the 20th annual payment and working backward, the annual payments scheduled to be made under this paragraph shall be reduced by an amount equal to the amount certified under s. 229.682 (12) (d).

AB438-SSA1,4,25 6. The department shall notify the district when it determines that the current annual payment will be the final annual payment under this subsection.

AB438-SSA1,5,2 (4) Contract requirements. The department may not award a grant under sub. (3) unless s. 229.6802 has been satisfied.

AB438-SSA1,5,8 (5) Loans to a local professional baseball park district. (a) Upon a majority vote of all current members appointed to the board of a district and eligible to vote on the matter, the department shall issue loans to the district in the amount approved by the board no later than 10 days after receipt of the board's request for the loan. The department may not issue more than a total of $35,000,000 in loans under this paragraph.

AB438-SSA1,5,13 (am) The district shall maintain all proceeds from loans issued under this subsection in a separate account in the baseball park facilities improvement segregated fund established under s. 229.687 and may expend the loan proceeds only for major capital repairs, retractable roof maintenance and repairs, and necessary improvements to the baseball park facilities.

AB438-SSA1,5,16 (b) Interest on each loan issued under par. (a) shall accrue monthly at a rate equal to the state investment fund earnings rate during the immediately preceding month, as certified by the secretary.

AB438-SSA1,5,21 (c) The district shall pay all interest accruing on each loan issued under par. (a) on a quarterly basis to the secretary for deposit in the general fund. The outstanding balance of each loan issued under par. (a) shall be paid no later than 15 years after the date of issuance or upon expiration or termination of the lease specified in s. 229.6802 (1), whichever is earlier.

AB438-SSA1,5,24 (d) At least quarterly, the department shall submit a report to the joint committee on finance specifying the outstanding principal and interest owed by the district on each loan issued under par. (a).

AB438-SSA1,6,2 (e) The department may not issue a loan under this subsection after December 31, 2045.

AB438-SSA1,4 Section 4. 16.58 (3) of the statutes is amended to read:

AB438-SSA1,6,6 16.58 (3) The department may provide financial consulting services to a local exposition district created under subch. II of ch. 229 or a local professional baseball park district created under subch. III of ch. 229.

AB438-SSA1,5 Section 5. 25.17 (1) (es) of the statutes is created to read:

AB438-SSA1,6,10 25.17 (1) (es) Funds of a local professional baseball park district created under subch. III of ch. 229 (s. 229.68 (9)), but subject to the terms of the contract under s. 229.68 (9);

AB438-SSA1,6 Section 6. 59.90 (7) of the statutes is created to read:

AB438-SSA1,6,14 59.90 (7) Repayment of pension bonds. Not later than December 31, 2030, the county shall retire its pension bond obligations and any debt incurred to refund its pension bond obligations.

AB438-SSA1,7 Section 7 . 77.54 (9a) (gm) of the statutes is created to read:

AB438-SSA1,6,17 77.54 (9a) (gm) A local professional baseball park district under subch. III of ch. 229.