1995 - 1996 LEGISLATURE
July 24, 1995 - Introduced by Representatives Duff, Porter, Hoven, Lehman,
Hahn, Olsen, Gunderson, Owens, Schneiders, Nass, Goetsch
and Silbaugh,
cosponsored by Senators Panzer and Breske. Referred to Committee on Ways
and Means.
AB490,1,4 1An Act to amend 24.61 (3) (b), 24.63 (1) and (4), 24.66 (1) (intro.) and (5) (a), 24.67
2(1) (intro.) and (3), 24.70, 24.72 and 24.73; and to create 24.60 (1g) and 24.61
3(3) (a) 9. of the statutes; relating to: authorization for privately organized fire
4companies and departments to obtain state trust fund loans.
Analysis by the Legislative Reference Bureau
Under current law, the board of commissioners of public lands makes loans
from the state trust funds (common school fund, normal school fund, agricultural
college fund and university fund) to specified local governments. Certain terms of
the loans are specified by law; others are specified in the loan agreements. Proceeds
of a loan may only be used for purposes specified by law. A local government that
obtains a loan must levy an irrepealable tax in an amount sufficient to guarantee
repayment of the loan. No local government qualifies for a loan unless its total
indebtedness, including the loan balance, does not exceed 5% of the value of its
taxable property, as equalized for state purposes.
This bill permits a privately organized fire company or department to apply for
and obtain a state trust fund loan for the purpose of purchasing fire fighting
equipment or for the construction, alteration or repair of any building used for fire
fighting purposes. The terms of any such loan are governed by the same provisions
that govern the terms of other loans, except that there is no requirement for a tax to
be levied and no limitation on the total indebtedness of the borrower.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB490, s. 1 5Section 1. 24.60 (1g) of the statutes is created to read:
AB490,2,3
124.60 (1g) "Fire fighting service" means a fire company organized as trustees
2under s. 213.02 or as a nonprofit corporation under s. 213.05, or a fire department
3organized under s. 213.08.
AB490, s. 2 4Section 2. 24.61 (3) (a) 9. of the statutes is created to read:
AB490,2,75 24.61 (3) (a) 9. A fire fighting service for the purpose of purchasing fire fighting
6equipment or for the construction, alteration or repair of any building used for fire
7fighting purposes.
AB490, s. 3 8Section 3. 24.61 (3) (b) of the statutes is amended to read:
AB490,2,139 24.61 (3) (b) Terms; conditions. A municipality or fire fighting service may
10borrow from the board or from moneys belonging to the trust funds obtain a state
11trust fund loan for
the sum of money, for the time and upon the conditions as may
12be agreed upon between the board and the borrower subject to the limitations,
13restrictions and conditions set forth in this subchapter.
AB490, s. 4 14Section 4. 24.63 (1) and (4) of the statutes are amended to read:
AB490,2,2315 24.63 (1) (title) Municipal loans Loans other than to school districts. State
16trust fund loans, other than those to school districts, may be made for any term not
17exceeding 20 years, and may be made payable in instalments and. A state trust fund
18loan to a municipality other than a school district
shall be in an amount which does
19not, in connection together with all other indebtedness of the municipality applying
20for the loan, exceed 5% of the valuation of the taxable property within the
21municipality as equalized for state purposes. If a state trust fund loan is made to pay
22off existing indebtedness, it may be advanced to the borrower in instalments as fast
23as the indebtedness or the evidence of indebtedness is canceled.
AB490,3,2 24(4) Repayment before due date permitted. Any municipality borrower, after
25March 15 and prior to August 1 of any year, may repay one or more instalments in

1advance of the due date, and all interest upon such advance payment shall thereupon
2terminate.
AB490, s. 5 3Section 5. 24.66 (1) (intro.) and (5) (a) of the statutes are amended to read:
AB490,3,84 24.66 (1) (title) For all municipalities borrowers. (intro.) No trust fund loan
5may be made unless an application is made to the board under this section. The
6application shall state the amount of money required, the purpose to which it is to
7be applied, and the times and terms of repayment. The For every municipality, the
8application shall be accompanied by satisfactory proof:
AB490,3,17 9(5) (a) Every application for a loan under this section by a municipality shall
10be accompanied by a certified copy under the hand of the proper clerk of a recorded
11resolution adopted by the municipality applying for or approving the loan, levying,
12except as provided in par. (b), upon all the taxable property of the municipality a
13direct annual tax for the purpose of paying and sufficient to pay the interest on such
14proposed loan as it falls due, and also to pay and discharge the principal thereof
15within 20 years from the making of such loan. Such a levy shall become void and of
16no effect if the board declines to make the loan; otherwise it shall remain valid and
17irrepealable until the loan and all interest thereon is fully paid.
AB490, s. 6 18Section 6. 24.67 (1) (intro.) and (3) of the statutes are amended to read:
AB490,3,2219 24.67 (1) (intro.)  If the board approves the application, it shall cause
20certificates of indebtedness to be prepared in proper form and transmitted to the
21municipality or fire fighting service submitting the application. The certificate of
22indebtedness shall be executed and signed:
AB490,4,7 23(3) If a unit of government municipality has acted under subs. (1) and (2), it
24shall certify that fact to the department of administration. The Upon receiving a
25certification from a municipality or upon direction of the board if a loan is made to

1a fire fighting service, the
department of administration shall then draw a warrant
2upon the state treasurer for the amount of the loan, payable to the treasurer of the
3municipality or fire fighting service, making the loan or as he or she the treasurer
4of the municipality or fire fighting service
directs. The certificate of indebtedness
5shall then be conclusive evidence of the validity of the indebtedness and that all the
6requirements of law concerning the application for the making and acceptance of the
7loan have been complied with.
AB490, s. 7 8Section 7. 24.70 of the statutes is amended to read:
AB490,4,11 924.70 (title) Collection from municipalities borrowers other than
10school districts. (1)
Applicability. This section applies to all outstanding state
11trust fund loans to municipalities borrowers other than school districts.
AB490,4,17 12(2) Certified statement. If a municipality borrower other than a school district
13has a state trust fund loan, the board shall transmit to the municipal clerk of the
14jurisdiction, or the person signing the application on behalf of the borrower in the
15case of a fire fighting service,
a certified statement of the amount due on or before
16October 1 of each year until the loan is paid repaid. The board shall submit a copy
17of each certified statement to the state treasurer.
AB490,4,21 18(3) Amount added to municipal levy. The Upon receipt of a certified statement
19by a municipal clerk, the
municipal clerk shall then cause the amount to be added
20to the municipal levy and collected in the same manner as the municipal tax except
21the amount for the state trust fund loan shall be separately designated.
AB490,5,4 22(4) Payment to state treasurer. The municipal treasurer of each municipality
23shall transmit to the state treasurer on his or her order the full amount levied for
24state trust fund loans within 15 days after March 15. Each fire fighting service shall
25similarly transmit the annual amount owed on any state trust fund loan made to the

1service by that date.
The state treasurer shall notify the board when he or she
2receives payment. Any payment not made by March 30 is delinquent and is subject
3to a penalty of one percent per month to be paid to the state treasurer with the
4delinquent payment.
AB490,5,11 5(6) Failure to make payments. If the municipal treasurer any municipality fails
6to remit the amount due by the date specified under sub. (4), the board may file a
7certified statement of the amount delinquent with the department of administration.
8The department of administration shall collect the amount due, including any
9penalty, by deducting that amount from any state payments due the municipality,
10shall remit that amount to the state treasurer and shall notify the treasurer and the
11board of that action.
AB490, s. 8 12Section 8. 24.72 of the statutes is amended to read:
AB490,5,15 1324.72 Use of funds. No money obtained by a municipality borrower from a
14state trust fund loan may be applied to or paid out for any purpose except that
15specified in the application for the loan without the consent of the board.
AB490, s. 9 16Section 9. 24.73 of the statutes is amended to read:
AB490,5,23 1724.73 Extension of loan. All loans made or which may be made from any of
18such
state trust funds to any municipality borrower may be extended for such time
19and upon such terms as may be agreed upon by and between the board and such
20borrower; provided, however, that no loan shall be extended upon which there is any
21default in the payment of interest at the time of making application therefor, nor to
22any period beyond 20 years from its inception, nor at any rate of interest less than
23the minimum established by law.
AB490,5,2424 (End)
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