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.
1An Act to amend
79.10 (6m) (a), 79.10 (7m) (cm) 1. a. and 79.10 (7m) (cm) 2. a.; 2
and 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
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
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
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:
13.94 (1) (w) of the statutes is created to read:
(w) Biennially, and at the direction of the joint legislative audit 3
committee, conduct a financial and performance audit of each commission created 4
under s. 66.0304.
20.835 (3) (g) of the statutes is created to read:
(g) Conduit bond fee credit
. From the moneys received under s. 7
66.0304 (9m), a sum sufficient to make the payments under s. 79.10 (4m).
66.0304 (9m) of the statutes is created to read:
66.0304 (9m) Fee.
Whenever the commission issues bonds under this section, 10
the commission shall pay a fee equal to 1 percent of the amount of the bonds to the 11
department of revenue to be credited to the appropriation account under s. 20.835 12
66.0304 (13) of the statutes is created to read:
66.0304 (13) Records open to inspection.
The legislative audit bureau may 15
examine all records of a commission.
74.09 (3) (b) 6n. of the statutes is created to read:
(b) 6n. The amount of the credit under s. 79.10 (4m) allocable to the 18
property for the previous year and the current year, and the percentage change 19
between those years.
79.10 (4m) of the statutes is created to read:
79.10 (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 3
of average school tax levies for all municipalities.
79.10 (6m) (a) of the statutes is amended to read:
(a) Except as provided in pars. (b) and (c), if the department of 6
administration or the department of revenue determines by October 1 of the year of 7
any distribution under subs. (4), (4m),
(5), and (5m) that there was an overpayment 8
or underpayment made in that year's distribution by the department of 9
administration to municipalities, as determined under subs. (4),
(5), and (5m), 10
because of an error by the department of administration, the department of revenue 11
or any municipality, the overpayment or underpayment shall be corrected as 12
provided in this paragraph. Any overpayment shall be corrected by reducing the 13
subsequent year's distribution, as determined under subs. (4),
(5), and (5m), 14
by an amount equal to the amount of the overpayment. Any underpayment shall be 15
corrected by increasing the subsequent year's distribution, as determined under 16
subs. (4), (4m),
(5), and (5m), by an amount equal to the amount of the underpayment. 17
Corrections shall be made in the distributions to all municipalities affected by the 18
error. Corrections shall be without interest.
79.10 (7m) (am) of the statutes is created to read:
(am) Conduit bond fee credit
. 1. Except as provided in par. (cm), 21
the amount determined under sub. (4m) shall be distributed by the department of 22
administration to the counties on the 4th Monday in July.
2. Except as provided in par. (cm), the county treasurer shall settle for the 24
amounts distributed under this paragraph on the 4th Monday in July with each 25
municipality and taxing jurisdiction in the county not later than August 20. Failure
to settle timely under this subdivision subjects the county treasurer to the penalties 2
under s. 74.31.
79.10 (7m) (cm) 1. a. of the statutes is amended to read:
(cm) 1. a. If, in any year, the total of the amounts determined under 5
subs. (4), (4m),
(5), and (5m) for any municipality is $3,000,000 or more, the 6
municipality, with the approval of the majority of the members of the municipality's 7
governing body, may notify the department of administration to distribute the 8
amounts directly to the municipality and the department of administration shall 9
distribute the amounts at the time and in the manner provided under pars. (a) 1., (b) 10
1., and (c) 1. Beginning in 2018, if the municipality approves the distribution under 11
this subd. 1. a. by enacting an ordinance and provides a copy of the ordinance to the 12
department of administration and the department of revenue, the department of 13
administration shall distribute the amounts determined under subs. (4), (4m),
and (5m) to the municipality as provided under this subd. 1. a. for the year in which 15
the municipality enacts the ordinance and in all subsequent years until the 16
municipality notifies the department of administration and the department of 17
revenue that the municipality has repealed the ordinance or until the total amounts 18
under subs. (4), (4m),
(5), and (5m) to be distributed to the municipality in a year is 19
less than $3,000,000.
79.10 (7m) (cm) 2. a. of the statutes is amended to read:
(cm) 2. a. The department of administration shall distribute the 22
amounts determined under subs. (4), (4m),
(5), and (5m) directly to any municipality 23
that enacts an ordinance under s. 74.12 at the time and in the manner provided 24
under pars. (a) 1., (b) 1., and (c) 1.