The bill provides payments to counties and municipalities to compensate for not being able to impose local general property taxes on real property exempt from taxation under the 1854 Treaty of La Pointe.
Automatically increasing the municipal services payments account
The bill increases the amounts transferred to the local government fund for payments for municipal services. Under the bill, each fiscal year those amounts increase by the percentage change in the estimated amount of revenues received from the state sales and use tax for the previous fiscal year from the immediately preceding fiscal year. Current law provides state aid payments to municipalities that provide municipal services to state facilities.
Energy and liquefied natural gas storage facilities
The bill provides utility aid payments to counties and municipalities where energy storage facilities are located. Under the bill, DOA distributes to each city and village in which an energy storage facility is located two-thirds of the amount calculated by multiplying the facility’s megawatt capacity by $2,000, and the county in which such a facility is located is distributed one-third of the amount calculated by multiplying the facility’s megawatt capacity by $2,000. DOA distributes to each town in which an energy storage facility is located one-third of the amount calculated by multiplying the facility’s megawatt capacity by $2,000, and the county in which such a facility is located is distributed two-thirds of the amount calculated by multiplying the facility’s megawatt capacity by $2,000.
The bill defines an “energy storage facility” as property that receives electrical energy, stores the energy in a different form, and converts that other form of energy back to electrical energy for sale or to use to provide reliability or economic benefits to the electrical grid. The bill also defines an “energy storage facility” as property that is owned by a light, heat, and power company, electric cooperative, or municipal electric company and includes hydroelectric pumped storage, compressed air energy storage, regenerative fuel cells, batteries, and similar technologies.
The bill also provides utility aid payments to counties and municipalities where liquefied natural gas storage facilities (LNG storage facilities) are located. The payment received by a city or village where an LNG storage facility is located is determined by multiplying the net book value of the LNG storage facility by six mills and by three mills in the case of a town. The payment received by a county where an LNG storage facility is located is determined by multiplying the net book value of the LNG storage facility by three mills if the facility is located in a city or village and by six mills if the facility is located in a town.
Aid to taxing jurisdictions for pipelines assessed by the state
Beginning in 2027, the bill requires the state to pay each taxing jurisdiction an amount equal to the property taxes levied on the pipeline property of a pipeline company for the property tax assessments as of January 1, 2024. Generally under current law, the property of a pipeline company is subject to the public utilities tax, and property that is subject to the public utilities tax is exempt from local property taxation.
Aid to Green Bay for NFL draft public safety costs
The bill provides the city of Green Bay with an additional $1,000,000 in county and municipal aid for reimbursement of public safety costs associated with the NFL draft in April 2025.
Expenditure restraint incentive program
Under current law, generally, a municipality is eligible to receive an expenditure restraint incentive payment if its property tax levy is greater than five mills and if the annual increase in its municipal budget is less than the sum of factors based on inflation and the increased value of property in the municipality as a result of new construction. Under the bill, the inflation factor used to determine eligibility is equal to the percentage change in the consumer price index or 3 percent, whichever is greater. The bill also excludes the following from being considered in determining eligibility for an expenditure restraint incentive program payment: 1) the amount by which a municipality’s base and supplemental county and municipal aid received in the applicable year exceeds the amount of base and supplemental county and municipal aid received by the municipality in 2024; 2) all grants received from the federal government; 3) revenues from a municipal vehicle registration fee that is approved by a majority of electors voting at a referendum; 4) the amount by which a municipality’s payments received for municipal services provided to facilities owned by the state exceeds the amount of those payments received in 2024; and 5) the $1,000,000 additional county and municipal aid payment to the city of Green Bay provided by the bill to reimburse public safety costs associated with the NFL draft in April 2025.
Local government fund transfer to offset certain sales tax exemptions
The bill increases the amount of the transfer from the general fund to the local government fund in fiscal year 2026-27 to compensate for the loss of sales and use tax revenues from the bill’s sales tax exemptions for over-the-counter prescription drugs and electricity and natural gas sold from May to October. Under current law, the annual increase in the amount of the county and municipal aid payments and the supplemental county and municipal aid payments is determined by the percentage change in the revenues received from the sales and use tax.
Timing of transfers to the local government fund
The bill increases the annual July transfer from the general fund to the local government fund to cover the full amount of expenditure restraint incentive program payments, computer aid payments, and video service provider fee aid payments that are paid to taxing jurisdictions from the local government fund by the 4th Monday in July.
Moving the date of computer aid payments
Beginning in 2026, the bill requires DOA to make computer aid payments to taxing jurisdictions by the first Monday in May. Under current law, computers and certain computer-related equipment are exempt from local personal property taxes, and DOA makes computer aid payments to taxing jurisdictions to compensate them for the corresponding loss of property tax revenue. Current law requires DOA to make computer aid payments by the fourth Monday in July.
STATE GOVERNMENT
General state government
Grants for local projects
Current law requires the Building Commission to establish and operate a grant program to assist nonstate organizations to carry out construction projects having a statewide public purpose. Before approving each grant, the Building Commission must determine that the organization carrying out the project has secured additional funding for the project from nonstate revenue sources in an amount that is equal to at least 50 percent of the total cost of the project.
The bill transfers the grant program to DOA. However, the Building Commission retains its role in approving each grant, making the statewide public purpose determination, and making the determination concerning the amount of nonstate funds the prospective grantee has raised for a project.
The bill further authorizes additional grants under the program to cities, villages, towns, counties, and tribal governments for construction projects having a statewide public purpose if the grant is approved by the Building Commission. Under the bill, these grants are funded from the interest earnings of the local government segregated fund.
Finally, the bill specifically authorizes the following grants under the program, which are subject to Building Commission approval and the other requirements and limitations under the program:
1. A grant of up to $4,000,000 to assist the New Community Shelter, Inc., in the construction of a permanent supportive housing facility in Brown County.
2. A grant of up to $6,000,000 to assist the YMCA of Metropolitan Milwaukee, Inc., and Community Smiles Dental in carrying out renovation of the historic Wisconsin Avenue School in the city of Milwaukee for use as a health and wellness center.
3. A grant of up to $15,000,000 to assist the Second Harvest Foodbank of Southern Wisconsin, Inc., in constructing a new facility to expand food processing, storage, and distribution.
4. A grant of up to $860,000 to assist the Colfax Railroad Museum, Inc., in constructing and renovating museum facilities in the village of Colfax to protect and display historical railroad artifacts.
5. A grant of up to $3,000,000 to assist the city of Green Bay in the construction and development of a public market.
6. A grant of up to $4,250,000 to assist the city of Glendale in the construction of a new library that will serve the communities of Bayside, Fox Point, Glendale, and River Hills, as well as all of Milwaukee County through the Milwaukee County Federated Library System.
7. A grant of up to $2,000,000 to a nonstate organization or a city, village, town, or county for the purchase, construction, or renovation of a child care center in the southwest region of the state.
8. A grant of up to $2,500,000 to assist Wellpoint Care Network, Inc., in renovating an existing facility in the city of Milwaukee to establish a child care center.
Project labor agreements
Under current law, the state and local units of government are prohibited from engaging in certain practices in letting bids for state procurement or public works contracts. Among these prohibitions, the state and local governments may not do any of the following in specifications for bids for the contracts: 1) require that a bidder enter into an agreement with a labor organization; 2) consider, when awarding a contract, whether a bidder has or has not entered into an agreement with a labor organization; or 3) require that a bidder enter into an agreement that requires that the bidder or bidder’s employees become or remain members of a labor organization or pay any dues or fees to a labor organization. The bill eliminates these limitations related to labor organizations.
Vacancies in certain appointive offices
Under current law, vacancies in public office may occur in a number of ways, including when the incumbent resigns, dies, or is removed from office, or, in the case of elected office, when the incumbent’s term expires. However, as the Wisconsin Supreme Court held in State ex rel. Kaul v. Prehn, 2022 WI 50, expiration of an incumbent’s term of office does not create a vacancy if the office is filled by appointment for a fixed term. Absent a vacancy or removal for cause, these incumbents may remain in office until their successors are appointed and qualified.
Under the bill, a vacancy in public office is created if the office is filled by appointment of the governor by and with the advice and consent of the senate for a fixed term and the incumbent’s term expires or the governor submits his or her nomination for the office to the senate, whichever is later.
Office of Violence Prevention
The bill creates the Office of Violence Prevention in DOA, establishes certain duties with respect to the office, and directs the office to award grants for community violence intervention. The bill provides that the office must coordinate and expand violence prevention activities and work to reduce the incidences of interpersonal violence. To achieve these goals, the office must do all of the following:
1. Establish a violence prevention focus across state government.
2. Collaborate with other state agencies that are interested or active in the reduction of interpersonal violence.
3. Support the development and implementation of comprehensive, community-based violence prevention initiatives within local units of government across the state, including collaborating with law enforcement agencies.
4. Develop sources of funding beyond state revenues to maintain the office and expand its activities.
5. Create a directory of existing violence prevention services and activities in each county.
6. Support and provide technical assistance to local organizations that provide violence prevention services, including in seeking out and applying for grant funding in support of their initiatives.
7. Develop public education campaigns to promote safer communities.
The bill directs the office to establish and implement a program to award grants to support effective violence reduction initiatives in communities across the state. Up to $3,000,000 of the grants must be awarded to federally recognized American Indian tribes or bands in this state or organizations affiliated with tribes relating to missing and murdered indigenous women. The bill also requires that up to $500,000 be awarded for grants related to suicide prevention for the following activities: 1) to train staff at a firearm retailer or firearm range on how to recognize a person who may be considering suicide; 2) to provide suicide prevention materials for distribution at a firearm retailer or firearm range; and 3) to provide voluntary, temporary firearm storage.
Task force on Missing and Murdered African American Women and Girls
The bill creates the Task Force on Missing and Murdered African American Women and Girls. The task force must examine various factors that contribute to violence against African American women and girls and submit to the governor two annual reports by December 31, 2026, on actions that can be taken to eliminate violence against African American women and girls.
Director of Native American affairs
The bill requires the secretary of administration to appoint a director of Native American affairs in the unclassified service to manage relations between the state and American Indian tribes or bands in the state.
Grants to each American Indian tribe or band in Wisconsin
The bill requires DOA to award grants of equal amounts to each American Indian tribe or band in the state for the following purposes:
1. To programs to meet the needs of members of the tribe or band.
2. To promote tribal language and cultural revitalization.
Under the bill, no grant moneys awarded under the above grant programs may be used to pay gaming-related expenses.
Other tribal grants
The bill requires DOA to do all of the following:
1. Award grants to the Menominee Indian Tribe of Wisconsin to support the Menominee Indian Tribe’s transit services, in an amount not to exceed $266,600 annually.
2. Award grants to the Oneida Nation of Wisconsin to conduct an intergovernmental training program, available to all tribal governments in Wisconsin, to improve consultations and communication between the tribes and the state. The grants may not total more than $60,000 annually.
3. Award grants to the Wisconsin Indigenous Housing and Economic Development Corporation to support tribal economic development and housing programs in Wisconsin. The grants may not total more than $3,890,000 in the 2025-26 fiscal year and $2,540,000 annually thereafter.
4. Award grants to American Indian tribes or bands in this state to support strategic planning concerning cybersecurity, in an amount up to $250,000 annually.
5. Award grants to American Indian tribes or bands in this state to support home repairs that reduce energy burdens and improve health outcomes, in an amount up to $1,000,000 annually.
Community climate engagement grant program
The bill requires DOA to establish and administer a community climate engagement grant program. Under the program, DOA is required to award grants to local nongovernmental organizations in Wisconsin for the purpose of promoting local climate and clean energy community engagement. Additionally, under the program, DOA is itself required to conduct and support outreach across Wisconsin concerning climate change, climate resilience, and the reduction of greenhouse gas emissions.
Community climate action grants
The bill requires DOA to create a grant program to assist local governmental units and governing bodies of federally recognized American Indian tribes and bands in this state with the development of climate risk assessment and action plans or to implement emission reduction and action projects. Under the bill, DOA is required to assist local governments and tribal governments with the development of climate risk assessment and action plans.
Grants to provide civil legal services
The bill requires DOA to award grants to the Wisconsin Trust Account Foundation, Inc., for the purpose of providing civil legal services.
Translation services
The bill provides that DOA may provide assistance to state agencies for costs related to translation services that are provided to a state agency through a state contract. The bill also appropriates GPR for the purpose.
Artificial intelligence tools and infrastructure support
The bill requires DOA to develop and maintain artificial intelligence tools and infrastructure for the benefit of state agencies, including the legislature and the courts.
Cybersecurity
Under current law, DOA is required to ensure that an adequate level of information technology services is made available to state agencies. The bill requires that DOA additionally conduct cybersecurity emergency incident response for state agencies. The bill funds those activities with up to $10,000,000 each fiscal year in moneys from the general fund that are allocated to sum sufficient appropriations of state agencies. A sum sufficient appropriation is expendable in the amounts necessary to accomplish the purpose specified in the appropriation.
The bill also creates an annual appropriation of GPR for DOA’s cybersecurity activities generally.
Cybersecurity insurance
The bill requires DOA to undertake planning and preparation to have a cybersecurity insurance program for executive branch agencies by the 2027–29 fiscal biennium.
Closed meetings to consider information technology security issues
Under current law, a governmental body is generally required to meet in open session. Open session is a meeting that is held in a place reasonably accessible to members of the public and open to all citizens at all times.
The bill allows a governmental body to go into closed session for the purpose of considering information technology security issues affecting information technology systems over which the governmental body has jurisdiction or exercises responsibility.
Funding for the Division of Alcohol Beverages
The bill creates a program-revenue appropriation to fund the Division of Alcohol Beverages (DAB) in DOR.
Under current law, the DAB administers and enforces the state’s alcohol beverage laws, including issuing alcohol beverage permits. The DAB is currently funded from multiple DOR appropriations, including an appropriation that receives proceeds from an administrative fee of 11 cents per gallon on taxed distilled spirits.
The bill creates, for DAB, a single PR appropriation consisting of DAB permit fees and associated administrative fees and liquor tax administrative fees.
Public records location fee
Current law allows an authority to impose a fee on any person requesting a public record to cover the cost of locating that record, if the cost is $50 or more. The location fee may not exceed the actual, necessary, and direct cost of locating the record. Current law defines an “authority” to include any elective official or state or local government agency that has custody of a public record.
