AB348,11,97 18.561 (1) Payment with revenue obligations. The state and a contracting
8party may provide, in any contract for purchasing or acquiring a revenue-producing
9enterprise or program, that payment shall be made in revenue obligations.
AB348, s. 20 10Section 20. 18.561 (7) (title) of the statutes is created to read:
AB348,11,1111 18.561 (7) (title) Payment for services.
AB348, s. 21 12Section 21. 18.561 (8) (title) of the statutes is created to read:
AB348,11,1313 18.561 (8) (title) Rates for services.
AB348, s. 22 14Section 22. 18.561 (9) (k) of the statutes is created to read:
AB348,11,1515 18.561 (9) (k) Defeasance of the obligations.
AB348, s. 23 16Section 23. 18.562 of the statutes is created to read:
AB348,12,2 1718.562 Special fund obligations. (1) Security interest in special fund.
18There is a security interest, for the benefit of the owners of the special fund
19obligations, in the amounts that arise after the creation of the special fund program
20in the special fund related to the special fund obligations. For this purpose, amounts
21in the special fund shall be accounted for on a first-in, first-out basis. No physical
22delivery, recordation or other action is required to perfect the security interest. The
23special fund shall remain subject to the security interest until provision for payment
24in full of the principal and interest of the special fund obligations has been made, as
25provided in the authorizing resolution. An owner of special fund obligations may

1either at law or in equity protect and enforce the security interest and compel
2performance of all duties required by this section.
AB348,12,8 3(2) Use of special fund moneys. The commission and the state agency carrying
4out the special fund program responsibilities shall jointly determine, and the
5commission shall fix in the authorizing resolution for the obligations, the conditions
6under which money in the special fund shall be set aside and applied to the payment
7of the principal and interest of the obligations, deposited in funds established under
8the authorizing resolution or made available for other purposes.
AB348,12,20 9(3) Redemption fund. The special fund revenues that are to be set aside for the
10payment of the principal and interest of the special fund obligations shall be paid into
11a separate fund in the treasury or in an account maintained by a trustee under sub.
12(5) (e) to be identified as "the ... redemption fund". Each redemption fund shall be
13expended, and all moneys from time to time on hand therein are irrevocably
14appropriated, in sums sufficient, only for the payment of principal and interest on
15the special fund obligations giving rise to it and premium, if any, due upon
16redemption of any such obligations. Moneys in the redemption funds may be
17commingled only for the purpose of investment with other public funds, but they
18shall be invested only in investment instruments permitted in s. 25.17 (3) (dr). All
19such investments shall be the exclusive property of the fund and all earnings on or
20income from such investments shall be credited to the fund.
AB348,12,23 21(4) Surplus. If any surplus is accumulated in any of the redemption funds,
22subject to contract rights vested in the owners of special fund obligations secured
23thereby, it shall be paid over to the treasury.
AB348,13,6 24(5) Authorizing resolution. The commission may provide in the authorizing
25resolution for special fund obligations or by subsequent action all things necessary

1to carry into effect this section. Any authorizing resolution shall constitute a
2contract with the owners of any special fund obligations issued pursuant to the
3resolution. An authorizing resolution may contain such provisions or covenants,
4without limiting the generality of the power to adopt the resolution, as are deemed
5necessary or desirable for the security of owners of the obligations or the
6marketability of the obligations, including provisions as to:
AB348,13,77 (a) Employment of consultants.
AB348,13,88 (b) Records and accounts.
AB348,13,99 (c) Establishment of reserve or other funds.
AB348,13,1010 (d) Issuance of additional obligations.
AB348,13,1211 (e) Deposit of the proceeds of the sale of the obligations or revenues of the
12special fund in trust, including the appointment of depositories or trustees.
AB348,13,1313 (f) Defeasance of the obligations.
AB348, s. 24 14Section 24. 18.57 (title) of the statutes is repealed and recreated to read:
AB348,13,15 1518.57 (title) Funds established for revenue obligations.
AB348, s. 25 16Section 25. 18.57 (1) of the statutes is amended to read:
AB348,14,317 18.57 (1) A separate and distinct fund shall be established in the state treasury
18or in an account maintained by a trustee under s. 18.56 18.561 (9) (j) with respect to
19each revenue-producing enterprise or program the income from which is to be
20applied to the payment of any revenue enterprise obligation. A separate and distinct
21fund shall be established in the state treasury or in an account maintained by a
22trustee under s. 18.562 (5) (e) with respect to any special fund that is created by the
23imposition of fees, penalties or excise taxes and is applied to the payment of special
24fund obligations.
All moneys resulting from the issuance of evidences of revenue
25obligation shall be credited to the appropriate fund or applied for refunding or note

1renewal purposes, except that moneys which represent premium or accrued interest
2received on the issuance of evidences shall be credited to the appropriate redemption
3fund.
AB348, s. 26 4Section 26. 18.57 (4) of the statutes is renumbered 18.57 (4) (intro.) and
5amended to read:
AB348,14,86 18.57 (4) (intro.) If, after all outstanding related revenue obligations have been
7paid or payment provided for, moneys remain in any such a fund, they created under
8sub. (1), all of the following shall occur:
AB348,14,11 9(a) If the fund created under sub. (1) is in an account maintained by a trustee
10under s. 18.561 (9) (j) or 18.562 (5) (e), the moneys
shall be paid over to the treasury
11and the.
AB348,14,12 12(b) The fund created under sub. (1) shall be closed.
AB348, s. 27 13Section 27. 18.58 (1) of the statutes is amended to read:
AB348,15,214 18.58 (1) Management of funds and records. All funds established under this
15subchapter which are deposited in the state treasury shall be managed as provided
16by law for other state funds, subject to any contract rights vested in holders owners
17of evidences of revenue obligation secured by such fund. The department of
18administration shall maintain full and correct records of each fund. The legislative
19audit bureau shall audit each fund as of January 1 of each year reconciling all
20transactions and showing the fair market value of all property on hand. All records
21and audits shall be public documents. All funds established under this subchapter
22which are deposited with a trustee under s. 18.56 18.561 (9) (j) or 18.562 (5) (e) shall
23be managed in accordance with resolutions authorizing the issuance of revenue
24obligations, agreements between the commission and the trustee and any contract

1rights vested in holders of evidence owners of revenue obligations secured by such
2fund.
AB348, s. 28 3Section 28. 18.60 (1) of the statutes is amended to read:
AB348,15,204 18.60 (1) The commission may authorize, for any one or more of the purposes
5described in s. 18.53 (1), the issuance of revenue-obligation refunding bonds.
6Refunding bonds may be issued, subject to any contract rights vested in holders
7owners of bonds or notes being refinanced, to refinance more than one issue of bonds
8or notes notwithstanding that the bonds or notes may have been issued at different
9times for different purposes and may be secured by the property or income of more
10than one enterprise or program or may be public debt or building-corporation
11indebtedness. The principal amount of refunding bonds shall not exceed the sum of:
12the principal amount of the bonds or notes being refinanced; applicable redemption
13premiums; unpaid interest on the bonds or notes to the date of delivery or exchange
14of the refunding bonds; in the event the proceeds are to be deposited in trust as
15provided in sub. (3), interest to accrue on the bonds or notes from the date of delivery
16to the date of maturity or to the redemption date selected by the commission,
17whichever is earlier; and the expenses incurred in the issuance of the refunding
18bonds and the payment of the bonds or notes. A determination by the commission
19that a refinancing is advantageous or that any of the amounts provided in the
20preceding sentence should be included in the refinancing shall be conclusive.
AB348, s. 29 21Section 29. 18.60 (2) of the statutes is amended to read:
AB348,16,1222 18.60 (2) If the commission determines to exchange refunding bonds, they may
23be exchanged privately for and in payment and discharge of any of the outstanding
24bonds or notes being refinanced. Refunding bonds may be exchanged for a like or
25greater principal amount of the bonds or notes being exchanged therefor except that

1the principal amount of the refunding bonds may exceed the principal amount of the
2bonds or notes being exchanged therefor only to the extent determined by the
3commission to be necessary or advisable to pay redemption premiums and unpaid
4interest to the date of exchange not otherwise provided for. The holders owners of
5the bonds or notes being refunded who elect to exchange need not pay accrued
6interest on the refunding bonds if and to the extent that interest is accrued and
7unpaid on the bonds or notes being refunded and to be surrendered. If any of the
8bonds or notes to be refinanced are to be called for redemption, the commission shall
9determine which redemption dates shall be used, if more than one date is applicable
10and shall, prior to the issuance of the refunding bonds, provide for notice of
11redemption to be given in the manner and at the times required by the proceedings
12authorizing the outstanding bonds or notes.
AB348, s. 30 13Section 30. 18.60 (5) of the statutes is renumbered 18.60 (5) (intro.) and
14amended to read:
AB348,16,1815 18.60 (5) (intro.) All of the following provisions of s. 18.56 that are not
16inconsistent with the express provisions of this section shall apply to refunding
17bonds, except that the maximum permissible term shall be 50 years from the date
18of original issue of the oldest note or bond issue being refunded.:
AB348, s. 31 19Section 31. 18.60 (5) (a) to (c) of the statutes are created to read:
AB348,16,2020 18.60 (5) (a) Section 18.56.
AB348,16,2121 (b) In the case of enterprise obligations, s. 18.561.
AB348,16,2222 (c) In the case of special fund obligations, s. 18.562.
AB348, s. 32 23Section 32. 18.61 (2) of the statutes is amended to read:
AB348,17,724 18.61 (2) The state pledges and agrees with the holders owners of any evidences
25of
revenue obligation obligations that the state will not limit or alter its powers to

1fulfill the terms of any agreements made with the holders owners or in any way
2impair the rights and remedies of the holders owners until the revenue obligations,
3together with interest including interest on any unpaid instalments of interest, and
4all costs and expenses in connection with any action or proceeding by or on behalf of
5the holders owners, are fully met and discharged. The commission may include this
6pledge and agreement of the state in any agreement with the holders of notes or
7bonds and in any evidence
owners of revenue obligation.
AB348, s. 33 8Section 33. 18.61 (3) (a) of the statutes is amended to read:
AB348,17,179 18.61 (3) (a) If the state fails to pay any revenue obligation in accordance with
10its terms, and default continues for a period of 30 days or if the state fails or refuses
11to comply with this subchapter or defaults in any agreement made with the holders
12owners of any issue of revenue obligations, the holders owners of 25% in aggregate
13principal amount of the revenue obligations of the issue then outstanding by
14instrument recorded in the office of the register of deeds of Dane county and approved
15or acknowledged in the same manner as a deed to be recorded may appoint a trustee
16to represent the holders owners of the notes or bonds revenue obligations for the
17purposes specifically provided in the instrument.
AB348, s. 34 18Section 34. 18.61 (3) (b) (intro.) of the statutes is amended to read:
AB348,17,2119 18.61 (3) (b) (intro.) The trustee may, and upon written request of the holders
20owners of 25% in aggregate principal amount of the revenue obligations of the issue
21then outstanding shall, in the trustee's own name:
AB348, s. 35 22Section 35. 18.61 (3) (b) 1. of the statutes is amended to read:
AB348,18,323 18.61 (3) (b) 1. By action or proceeding, enforce all rights of all holders owners
24of the issue of revenue obligations, including the right to require the state to collect
25enterprise or program income adequate to carry out any agreement as to, or pledge

1of, such income and to require the state to carry out any other agreements with the
2holders owners of the revenue obligations and to perform its duties under this
3subchapter;
AB348, s. 36 4Section 36. 18.61 (3) (b) 3. of the statutes is amended to read:
AB348,18,65 18.61 (3) (b) 3. By action, require the state to account as if it were the trustee
6of an express trust for the holders owners of the revenue obligations;
AB348, s. 37 7Section 37. 18.61 (3) (b) 4. of the statutes is amended to read:
AB348,18,98 18.61 (3) (b) 4. By action, enjoin any acts or things which may be unlawful or
9in violation of the rights of the holders owners of the revenue obligations; and
AB348, s. 38 10Section 38. 18.61 (3) (c) of the statutes is amended to read:
AB348,18,1411 18.61 (3) (c) The trustee shall have all of the powers necessary or appropriate
12for the exercise of any functions specifically set forth in this subchapter or incident
13to the general representation of the holders owners of revenue obligations in the
14enforcement and protection of their rights.
AB348, s. 39 15Section 39. 18.61 (4) of the statutes is amended to read:
AB348,18,2216 18.61 (4) Any public officer or public employe, as defined in s. 939.22 (30), and
17the surety on the person's official bond, or any other person participating in any
18direct or indirect impairment of any fund established under this subchapter, shall
19be liable in any action brought by the attorney general in the name of the state, or
20by any taxpayer of the state, or by the holder of any evidence owner of revenue
21obligation payable in whole or in part, directly or indirectly, out of such fund, to
22restore to the fund all diversions from the fund.
AB348, s. 40 23Section 40. 20.143 (3) (s) of the statutes is created to read:
AB348,19,624 20.143 (3) (s) Petroleum inspection fund — revenue obligation proceeds. As a
25continuing appropriation, all proceeds from revenue obligations that are issued

1under subch. II or IV of ch. 18, authorized under s. 101.143 (9m) and deposited in a
2fund in the state treasury created under s. 18.57 (1), to provide for reserves and for
3expenses of issuance and management of the revenue obligations, and the remainder
4to be transferred to the petroleum inspection fund for the purposes of the petroleum
5storage remedial action program under s. 101.143. Estimated disbursements under
6this paragraph shall not be included in the schedule under s. 20.005.
AB348, s. 41 7Section 41. 20.143 (3) (t) of the statutes is created to read:
AB348,19,118 20.143 (3) (t) Petroleum inspection fund -- revenue obligation repayment. From
9the petroleum inspection fund, a sum sufficient to repay the fund in the state
10treasury created under s. 18.57 (1) the amount needed to retire revenue obligations
11issued under subch. II or IV of ch. 18, as authorized under s. 101.143 (9m).
AB348, s. 42 12Section 42. 20.143 (3) (u) of the statutes is created to read:
AB348,19,2213 20.143 (3) (u) Revenue obligation debt service -- petroleum inspection fund.
14From the fund in the state treasury created under s. 18.57 (1), all moneys received
15by the fund for the purpose of the retirement of revenue obligations, providing for
16reserves and for operations relating to the management and retirement of revenue
17obligations issued under subch. II or IV of ch. 18, as authorized under s. 101.143 (9m).
18All moneys received by the fund are irrevocably appropriated in accordance with
19subch. II of ch. 18 and further established in resolutions authorizing the issuance of
20the revenue obligations and setting forth the distribution of funds to be received
21thereafter. Estimated disbursements under this paragraph shall not be included in
22the schedule under s. 20.005.
AB348, s. 43 23Section 43. 20.143 (3) (v) of the statutes is amended to read:
AB348,20,324 20.143 (3) (v) Petroleum storage environmental remedial action; awards.
25Biennially, from the petroleum inspection fund, the amounts in the schedule to pay

1awards under s. 101.143 and, legal costs incurred under s. 101.143 (7m), amounts
2to reduce principal of outstanding revenue obligations issued pursuant to s. 101.143
3(9m)
.
AB348, s. 44 4Section 44. 20.143 (3) (vb) of the statutes is created to read:
AB348,20,105 20.143 (3) (vb) Petroleum storage environmental remedial action revenue
6bonding; awards.
From the petroleum inspection fund, a sum sufficient not to exceed
7the net proceeds of special fund obligations issued pursuant to s. 101.143 (9m) to pay
8awards under s. 101.143 (4) and legal costs incurred under s. 101.143 (7m).
9Estimated disbursements under this paragraph shall not be included in the schedule
10under s. 20.005.
AB348, s. 45 11Section 45. 25.47 of the statutes is renumbered 25.47 (intro.) and amended
12to read:
AB348,20,14 1325.47 Petroleum inspection fund. (intro.) There is established a separate
14nonlapsible trust fund designated as the petroleum inspection fund, to consist of the:
AB348,20,15 15(1) The fees imposed under s. 168.12 (1), the.
AB348,20,16 16(2) The payments under s. 101.143 (4) (h) 1m., the
AB348,20,17 17(3) The payments under s. 101.143 (5) (a) and the.
AB348,20,18 18(4) The net recoveries under s. 101.143 (5) (c).
AB348, s. 46 19Section 46. 25.47 (5) of the statutes is created to read:
AB348,20,2120 25.47 (5) The moneys transferred from the appropriation account under s.
2120.143 (3) (s).
AB348, s. 47 22Section 47. 45.79 (9) (a) of the statutes is amended to read:
AB348,21,823 45.79 (9) (a) All moneys received from any source for repayment of loans,
24mortgages or mortgage loan notes funded with proceeds of revenue obligations
25issued under sub. (6) (c) shall be deposited into one or more separate nonlapsible

1trust funds in the state treasury or with a trustee as provided in s. 18.56 18.561 (9)
2(j) or 18.562 (5) (e). The board may pledge revenues received by the funds to secure
3revenue obligations issued under sub. (6) (c) and shall have all other powers
4necessary and convenient to distribute the proceeds of the revenue obligations and
5loan repayments in accordance with subch. II of ch. 18. Unrestricted balances in the
6funds may be used to fund additional loans issued under sub. (6) (c) and pay the
7balances owing on loans after the assumptions of the loans or the closings of the sales
8of residences under sub. (10) (c).
AB348, s. 48 9Section 48. 84.59 (2) of the statutes is amended to read:
AB348,21,1510 84.59 (2) The department may, under s. 18.56 18.561 (5) and (9) (j) or 18.562
11(3) and (5) (e)
, deposit in a separate and distinct fund outside the state treasury, in
12an account maintained by a trustee, revenues derived under s. 341.25. The revenues
13deposited are the trustee's revenues in accordance with the agreement between this
14state and the trustee or in accordance with the resolution pledging the revenues to
15the repayment of revenue obligations issued under this section.
AB348, s. 49 16Section 49. 85.52 (5) (c) of the statutes is amended to read:
AB348,21,2417 85.52 (5) (c) The department of administration may, under s. 18.56 18.561 (5)
18and (9) (j) or 18.562 (3) and (5) (e), deposit in a separate and distinct fund in the state
19treasury or in an account maintained by a trustee outside the state treasury, any
20portion of the revenues derived under s. 25.405 (2). The revenues deposited with a
21trustee outside the state treasury are the trustee's revenues in accordance with the
22agreement between this state and the trustee or in accordance with the resolution
23pledging the revenues to the repayment of revenue obligations issued under this
24subsection.
AB348, s. 50 25Section 50. 101.143 (9m) of the statutes is created to read:
AB348,22,8
1101.143 (9m) Revenue obligations. (a) For purposes of subch. II of ch. 18, the
2petroleum storage remedial action program is a special fund program, and the
3petroleum inspection fund is a special fund. The petroleum inspection fund is a
4segregated fund created by the imposition of fees, penalties or excise taxes. The
5legislature finds and determines that a nexus exists between the petroleum storage
6remedial action program and the petroleum inspection fund in that fees imposed on
7users of petroleum are used to remedy environmental damage caused by petroleum
8storage.
AB348,22,139 (b) Deposits, appropriations or transfers to the petroleum inspection fund for
10the purposes of the petroleum storage remedial action program may be funded with
11the proceeds of revenue obligations issued subject to and in accordance with subch.
12II of ch. 18 and, if designated a higher education bond, in accordance with subch. IV
13of ch. 18.
AB348,22,1714 (e) The department shall have all other powers necessary and convenient to
15distribute the special fund revenues and to distribute the proceeds of the revenue
16obligations in accordance with subch. II of ch. 18 and, if designated a higher
17education bond, in accordance with subch. IV of ch. 18.
AB348,22,2118 (f) The department may enter into agreements with the federal government or
19its agencies, political subdivisions of this state, individuals or private entities to
20insure or in any other manner provide additional security for the revenue obligations
21issued under this subsection.
AB348,23,522 (g) Revenue obligations may be contracted by the building commission when
23it reasonably appears to the building commission that all obligations incurred under
24this subsection can be fully paid on a timely basis from moneys received or
25anticipated to be received. Revenue obligations issued under this subsection may not

1exceed $450,000,000 in principal amount. In addition to this limit on principal
2amount, the building commission may contract revenue obligations under this
3subsection as the building commission determines is desirable to fund or refund
4outstanding revenue obligations, to pay issuance or administrative expenses, to
5make deposits to reserve funds or to pay accrued or capitalized interest.
AB348,23,116 (h) Unless otherwise expressly provided in resolutions authorizing the
7issuance of revenue obligations or in other agreements with the owners of revenue
8obligations, each issue of revenue obligations under this subsection shall be on a
9parity with every other revenue obligation issued under this subsection and in
10accordance with subch. II of ch. 18 and, if designated a higher education bond, in
11accordance with subch. IV of ch. 18.
AB348,23,1712 (i) Recognizing its moral obligation to do so, the legislature expresses its
13expectation and aspiration that, if the legislature reduces the rate of the petroleum
14inspection fee and if the funds in the petroleum inspection fund are insufficient to
15pay the principal and interest on the revenue obligations issued under subch. II or
16IV of ch. 18 pursuant to this subsection, the legislature shall make an appropriation
17from the general fund sufficient to pay the principal and interest on the obligations.
AB348, s. 51 18Section 51. 281.59 (4) (b) of the statutes is amended to read:
AB348,24,219 281.59 (4) (b) The department of administration may, under s. 18.56 18.561 (5)
20and (9) (j) or 18.562 (3) and (5) (e), deposit in a separate and distinct fund in the state
21treasury or in an account maintained by a trustee outside the state treasury, any
22portion of the revenues derived under s. 25.43 (1). The revenues deposited with a
23trustee outside the state treasury are the trustee's revenues in accordance with the
24agreement between this state and the trustee or in accordance with the resolution

1pledging the revenues to the repayment of revenue obligations issued under this
2subsection.
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