AB 538

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 business improvement district (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.

Also under current law, a municipality may create a neighborhood

improvement district (NID), upon being petitioned to do so by an owner of real

property that is located in the proposed NID, if a number of steps are taken. In

general, a NID is an area within a municipality consisting of parcels that are nearby

to one another, but not necessarily contiguous, at least some of which are used for

residential purposes and are subject to general real estate taxes, and also may

include property that is acquired and owned by the NID board. A 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 a NID, and may appropriate other money to such districts. 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 or NID to put into effect its operating plan, and to

pay for certain required audits. Generally, the boards determine how such funds are

spent. The creating municipality may terminate such districts by following certain

procedures that are specified in the statutes.

Also 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 the receipt or furnishing

of 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 (MJBID). The conditions

include a requirement that the district's borders contain contiguous territory in all

of the municipalities that are party to the agreement creating the MJBID. An

MJBID is governed by a single board whose members are appointed by the chief

executive officers of each of the municipalities that are part of a MJBID, and

confirmed by all the relevant local legislative bodies. All actions taken by the board

that require local legislative body approval, however, must be approved by all the