LRB-0561/4
EVM&JK:cdc&amn
2019 - 2020 LEGISLATURE
November 21, 2019 - Introduced by Representatives Allen, Brandtjen,
Magnafici, Horlacher, Murphy, Gundrum, Ramthun, Skowronski, Neylon
and Thiesfeldt, cosponsored by Senators Nass, Jacque, Stroebel, Craig and
Marklein. Referred to Committee on State Affairs.
AB630,1,5 1An Act to amend 79.10 (6m) (a), 79.10 (7m) (cm) 1. a. and 79.10 (7m) (cm) 2. a.;
2and to create 13.94 (1) (w), 20.835 (3) (g), 66.0304 (9m), 66.0304 (13), 74.09 (3)
3(b) 6n., 79.10 (4m) and 79.10 (7m) (am) of the statutes; relating to: conduit
4bonding authorities, distributions for property tax relief, and making an
5appropriation.
Analysis by the Legislative Reference Bureau
Under current law, with certain limitations, two or more political subdivisions
may create a commission that is authorized, among other things, to 1) raise moneys
by issuing municipal bonds; and 2) convey these moneys to qualifying private entities
to finance certain types of capital improvement projects. A commission's bonds are
known as conduit bonds — the commission acts, in effect, as a conduit between the
purchaser of the bonds and the actual borrower of the moneys raised from the bonds.
In general, the borrower pays a lower interest rate for financing a project this way
than it would pay for financing on the open market, because the interest that the
bond purchaser earns from the conduit bonds is exempt from federal or state
taxation.
This bill makes two changes related to these conduit bonding commissions. The
bill specifies that the Legislative Audit Bureau must conduct an audit of each
commission every two years and at the direction of the Joint Legislative Audit
Committee. The bill also requires the commission to pay a fee of 1 percent of the
amount of any bonds it issues and to pay these fees to the Department of Revenue

to fund a property tax credit that is calculated in the same manner as the school levy
credit.
For further information see the state and 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:
AB630,1 1Section 1. 13.94 (1) (w) of the statutes is created to read:
AB630,2,42 13.94 (1) (w) Biennially, and at the direction of the joint legislative audit
3committee, conduct a financial and performance audit of each commission created
4under s. 66.0304.
AB630,2 5Section 2. 20.835 (3) (g) of the statutes is created to read:
AB630,2,76 20.835 (3) (g) Conduit bond fee credit. From the moneys received under s.
766.0304 (9m), a sum sufficient to make the payments under s. 79.10 (4m).
AB630,3 8Section 3. 66.0304 (9m) of the statutes is created to read:
AB630,2,129 66.0304 (9m) Fee. Whenever the commission issues bonds under this section,
10the commission shall pay a fee equal to 1 percent of the amount of the bonds to the
11department of revenue to be credited to the appropriation account under s. 20.835
12(3) (g).
AB630,4 13Section 4. 66.0304 (13) of the statutes is created to read:
AB630,2,1514 66.0304 (13) Records open to inspection. The legislative audit bureau may
15examine all records of a commission.
AB630,5 16Section 5. 74.09 (3) (b) 6n. of the statutes is created to read:
AB630,2,1917 74.09 (3) (b) 6n. The amount of the credit under s. 79.10 (4m) allocable to the
18property for the previous year and the current year, and the percentage change
19between those years.
AB630,6 20Section 6. 79.10 (4m) of the statutes is created to read:
AB630,3,3
179.10 (4m) Conduit bond fee credit. The amount appropriated under s. 20.835
2(3) (g) shall be distributed to municipalities in proportion to their share of the sum
3of average school tax levies for all municipalities.
AB630,7 4Section 7. 79.10 (6m) (a) of the statutes is amended to read:
AB630,3,185 79.10 (6m) (a) Except as provided in pars. (b) and (c), if the department of
6administration or the department of revenue determines by October 1 of the year of
7any distribution under subs. (4), (4m), (5), and (5m) that there was an overpayment
8or underpayment made in that year's distribution by the department of
9administration to municipalities, as determined under subs. (4), (4m), (5), and (5m),
10because of an error by the department of administration, the department of revenue
11or any municipality, the overpayment or underpayment shall be corrected as
12provided in this paragraph. Any overpayment shall be corrected by reducing the
13subsequent year's distribution, as determined under subs. (4), (4m), (5), and (5m),
14by an amount equal to the amount of the overpayment. Any underpayment shall be
15corrected by increasing the subsequent year's distribution, as determined under
16subs. (4), (4m), (5), and (5m), by an amount equal to the amount of the underpayment.
17Corrections shall be made in the distributions to all municipalities affected by the
18error. Corrections shall be without interest.
AB630,8 19Section 8. 79.10 (7m) (am) of the statutes is created to read:
AB630,3,2220 79.10 (7m) (am) Conduit bond fee credit. 1. Except as provided in par. (cm),
21the amount determined under sub. (4m) shall be distributed by the department of
22administration to the counties on the 4th Monday in July.
AB630,4,223 2. Except as provided in par. (cm), the county treasurer shall settle for the
24amounts distributed under this paragraph on the 4th Monday in July with each
25municipality and taxing jurisdiction in the county not later than August 20. Failure

1to settle timely under this subdivision subjects the county treasurer to the penalties
2under s. 74.31.
AB630,9 3Section 9. 79.10 (7m) (cm) 1. a. of the statutes is amended to read:
AB630,4,194 79.10 (7m) (cm) 1. a. If, in any year, the total of the amounts determined under
5subs. (4), (4m), (5), and (5m) for any municipality is $3,000,000 or more, the
6municipality, with the approval of the majority of the members of the municipality's
7governing body, may notify the department of administration to distribute the
8amounts directly to the municipality and the department of administration shall
9distribute the amounts at the time and in the manner provided under pars. (a) 1., (b)
101., and (c) 1. Beginning in 2018, if the municipality approves the distribution under
11this subd. 1. a. by enacting an ordinance and provides a copy of the ordinance to the
12department of administration and the department of revenue, the department of
13administration shall distribute the amounts determined under subs. (4), (4m), (5),
14and (5m) to the municipality as provided under this subd. 1. a. for the year in which
15the municipality enacts the ordinance and in all subsequent years until the
16municipality notifies the department of administration and the department of
17revenue that the municipality has repealed the ordinance or until the total amounts
18under subs. (4), (4m), (5), and (5m) to be distributed to the municipality in a year is
19less than $3,000,000.
AB630,10 20Section 10. 79.10 (7m) (cm) 2. a. of the statutes is amended to read:
AB630,4,2421 79.10 (7m) (cm) 2. a. The department of administration shall distribute the
22amounts determined under subs. (4), (4m), (5), and (5m) directly to any municipality
23that enacts an ordinance under s. 74.12 at the time and in the manner provided
24under pars. (a) 1., (b) 1., and (c) 1.
AB630,4,2525 (End)
Loading...
Loading...