AB 412

This bill changes the special assessment method used in business improvement

districts (BIDs).

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.

Under this bill, if a municipality specially assesses a mixed-use property in a

BID, which is real property that is partly taxable, and partly tax-exempt or

residential, the special assessment may be imposed only on the percentage of the

property that is not tax-exempt or residential.