SE5 AB1: Bill Text Engrossed

AB1-engrossed,35,2 229.685 Special fund tax revenues. (1) The district board shall maintain a special fund into which it deposits only the revenue received from the department of revenue, that is derived from the taxes imposed under subch. V of ch. 77, and may use this revenue only for purposes related to baseball park facilities.

AB1-engrossed,35,14 (2) If the district board determines that the revenues in the special fund under this section exceed current operating expenses for the operation of baseball park facilities, the district board shall apply the excess to either fund a fund for maintenance costs and capital improvements or to retire bonds issued for the initial construction of baseball park facilities, and any bonds issued to fund or refund those bonds, prior to their maturity. As soon as practicable after the retirement of all bonds issued for the initial construction of baseball park facilities and all bonds issued to fund or refund those bonds and after funding a fund for maintenance costs and capital improvements sufficiently to meet any maintenance or capital improvement obligations between the district and any professional baseball team using baseball park facilities constructed under this subchapter as a home stadium, the district board shall make a certification to the department of revenue to that effect.

AB1-engrossed,35,17 229.69 Powers granted to a city or a county in a district. In addition to any powers that it may otherwise have, a city or a county within a district's jurisdiction may do any of the following:

AB1-engrossed,35,19 (1) Make grants or loans to a district upon terms that the city or county considers appropriate.

AB1-engrossed,35,20 (2) Expend public funds to subsidize a district.

AB1-engrossed,35,22 (3) Borrow money under ss. 67.04 and 67.12 (12) for baseball park facilities or to fund grants, loans or subsidies to a district.

AB1-engrossed,35,24 (4) Grant to the state land or other property, especially dedicated by the grant to use for a professional baseball park.

AB1-engrossed,35,25 229.70 Minority contracting goals. (1) In this section:

AB1-engrossed,36,1 (a) "Minority business" has the meaning given in s. 560.036 (1) (e).

AB1-engrossed,36,2 (b) "Minority group member" has the meaning given in s. 560.036 (1) (f).

AB1-engrossed,36,5 (c) "Women's business" means a sole proprietorship, partnership, joint venture or corporation that is at least 51% owned, controlled and actively managed by women.

AB1-engrossed,36,11 (2) The district shall ensure that, for construction work and professional services contracts, a person who is awarded such a contract by a district shall agree, as a condition to receiving the contract, that his or her goal shall be to ensure that at least 25% of the employes hired because of the contract will be minority group members and at least 5% of the employes hired because of the contract will be women if the contract is for the construction of any part of baseball park facilities.

AB1-engrossed,36,16 (3) It shall be a goal of the district to ensure that at least 25% of the aggregate dollar value of contracts awarded by the district in the following areas shall be awarded to minority businesses and at least 5% of the aggregate dollar value of contracts awarded by the district in the following areas shall be awarded to women's businesses:

AB1-engrossed,36,17 (a) Contracts for the construction of baseball park facilities.

AB1-engrossed,36,19 (b) Contracts for professional services related to the construction of baseball park facilities.

AB1-engrossed,36,20 (c) Contracts for the development of baseball park facilities.

AB1-engrossed,36,24 (4) It shall be a goal of a district, with regard to each of the contracts described under sub. (3) (a), (b) and (c), to award at least 25% of the dollar value of such contracts to minority businesses and at least 5% of the dollar value of such contracts to women's businesses.

AB1-engrossed,37,7 (5) (a) The district shall hire an independent person to monitor the district's compliance with minority contracting goals under subs. (2), (3) and (4) and the department of administration's compliance with minority contracting goals under s. 16.854 (2) and (3). The person hired shall have previous experience working with minority group members. The district shall develop a mechanism to receive regular reports from the person hired with respect to the results of the person's studies of compliance with minority contracting goals.

AB1-engrossed,37,11 (b) If the district or a contractor is unable to meet the goals under sub. (2), (3) or (4), the person hired under par. (a) shall assess whether the district or contractor made a good faith effort to reach the goals. In determining whether a good faith effort was made to meet the goals, the person hired shall consider all of the following:

AB1-engrossed,37,14 1. The supply of eligible minority businesses and women's businesses that have the financial capacity, technical capacity and previous experience in the areas in which contracts were awarded.

AB1-engrossed,37,17 2. The competing demands for the services provided by eligible minority businesses and women's businesses, as described in subd. 1., in areas in which contracts were awarded.

AB1-engrossed,37,21 3. The extent to which the district or contractors advertised for and aggressively solicited bids from eligible minority businesses and women's businesses, as described in subd. 1., and the extent to which eligible minority businesses and women's businesses submitted bids.

AB1-engrossed,37,25 (6) The district shall solicit from any major league baseball club to whom the district leases baseball park facilities its minority hiring goals in connection with the operation of a baseball stadiums and its minority contracting goals in connection with vending contractors at a baseball stadium.

AB1-engrossed,38,6 229.71 Dissolution of a district. Subject to providing for the payment of its bonds, including interest on the bonds, and the performance of its other contractual obligations, a district may be dissolved by the action of the district board. If the district is dissolved, the property of the district shall be transferred to the counties in the jurisdiction, based on the tax revenues derived from each county, as determined by the secretary of administration.

AB1-engrossed,38,9 229.72 Issuance and negotiability of bonds. (1m) Negotiability. All bonds are negotiable for all purposes, notwithstanding their payment from a limited source.

AB1-engrossed,38,12 (2) Employment of financial consultant. A district may retain the building commission or any other person as its financial consultant to assist with and coordinate the issuance of bonds.

AB1-engrossed,38,16 (6) Liability. Neither the members of the district board nor any person executing the bonds is liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance of the bonds, unless the personal liability or accountability is the result of wilful misconduct.

AB1-engrossed,38,22 229.74 Special debt service reserve funds. (1) Designation of special debt service reserve funds. A district may designate one or more accounts in funds created under s. 66.066 (2) (e) as special debt service reserve funds, if, prior to each issuance of bonds to be secured by the special debt service reserve fund, the secretary of administration determines that all of the following conditions are met with respect to the bonds:

AB1-engrossed,38,24 (a) Purpose. The proceeds of the bonds, other than refunding bonds, will be used for baseball park facilities.

AB1-engrossed,39,6 (b) Feasibility. The proceeds of bonds, other than refunding bonds, will be used for feasible projects and there is a reasonable likelihood that the bonds will be repaid without the necessity of drawing on funds in the special debt service reserve fund that secures the bonds. The secretary of administration may make the determinations required under this paragraph only after considering all of the following:

AB1-engrossed,39,8 1. Whether a pledge of the tax revenues of the district is made under the bond resolution.

AB1-engrossed,39,9 2. How the tax revenues of the district are pledged to the payment of the bonds.

AB1-engrossed,39,12 3. Revenue projections for the project to be financed by the bonds, including tax revenues, and the reasonableness of the assumptions on which these revenue projections are based.

AB1-engrossed,39,14 4. The proposed interest rates of the bonds and the resulting cash-flow requirements.

AB1-engrossed,39,16 5. The projected ratio of annual tax revenues to annual debt service of the district, taking into account capitalized interest.

AB1-engrossed,39,19 6. Whether an understanding exists providing for repayment by the district to the state of all amounts appropriated to the special debt service reserve fund pursuant to sub. (7).

AB1-engrossed,39,22 8. Whether the district has agreed that the department of administration will have direct and immediate access, at any time and without notice, to all records of the district.

AB1-engrossed,40,3 (c) Limit on bonds issued. The amount of all bonds, other than refunding bonds, that would be secured by all special debt service reserve funds of the district will not exceed $160,000,000. In determining compliance with the limitation under this paragraph, the secretary of administration need not include bonds that are secured by a special debt service reserve fund to the extent that proceeds of the bonds are for the following purposes:

AB1-engrossed,40,4 1. To make a deposit into a special debt service reserve fund.

AB1-engrossed,40,5 2. To pay issuance costs of bonds secured by a special debt service reserve fund.

AB1-engrossed,40,7 3. To pay capitalized interest costs on bonds secured by a special debt service reserve fund.

AB1-engrossed,40,8 4. To pay any original issue discount.

AB1-engrossed,40,10 (d) Date of issuance. The bonds, other than refunding bonds, will be issued no later than December 31, 2000.

AB1-engrossed,40,12 (e) Refunding bonds. All refunding bonds to be secured by the special debt service reserve fund meet all of the following conditions:

AB1-engrossed,40,14 1. The refunding bonds are to be issued to fund, refund or advance refund bonds secured by a special debt service reserve fund.

AB1-engrossed,40,16 2. The refunding of bonds by the refunding bonds will not adversely affect the risk that the state will be called on to make a payment under sub. (7).

AB1-engrossed,40,22 (f) Approval of outstanding debt. All outstanding debt of the district has been reviewed and approved by the secretary of administration. In determining whether to approve outstanding debt under this paragraph, the secretary may consider any factor which the secretary determines to have a bearing on whether the state moral obligation pledge under sub. (7) should be granted with respect to an issuance of bonds.

AB1-engrossed,41,2 (g) Financial reports. The district has agreed to provide to the department of administration, the legislative fiscal bureau and the legislative audit bureau all financial reports of the district and all regular monthly statements of any trustee of the bonds on a direct and ongoing basis.

AB1-engrossed,41,9 (2) Payment of funds into a special debt service reserve fund. A district shall pay into any special debt service reserve fund of the district any moneys appropriated and made available by the state for the purposes of the special debt service reserve fund, any proceeds of a sale of bonds to the extent provided in the bond resolution authorizing the issuance of the bonds and any other moneys that are made available to the district for the purpose of the special debt service reserve fund from any other source.

AB1-engrossed,41,25 (3) Use of moneys in the special debt service reserve fund. All moneys held in any special debt service reserve fund of a district, except as otherwise specifically provided, shall be used, as required, solely for the payment of the principal of bonds secured in whole or in part by the special debt service reserve fund, the making of sinking fund payments with respect to these bonds, the purchase or redemption of these bonds, the payment of interest on these bonds or the payment of any redemption premium required to be paid when these bonds are redeemed prior to maturity. If moneys in a special debt service reserve fund at any time are less than the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund, the district may not use these moneys for any optional purchase or optional redemption of the bonds. Any income or interest earned by, or increment to, any special debt service reserve fund due to the investment of moneys in the special debt service reserve fund may be transferred by the district to other funds or accounts of the district to the extent that the transfer does not reduce the amount of the special debt service reserve fund below the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund.

AB1-engrossed,42,8 (4) Limitation on bonds secured by a special debt service reserve fund. A district shall accumulate in each special debt service reserve fund an amount equal to the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund. A district may not at any time issue bonds secured in whole or in part by a special debt service reserve fund if upon the issuance of these bonds the amount in the special debt service reserve fund will be less than the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund.

AB1-engrossed,42,24 (5) Special debt service reserve fund requirement. The special debt service reserve fund requirement for a special debt service reserve fund, as of any particular date of computation, is equal to an amount of money, as provided in the bond resolution authorizing the bonds with respect to which the special debt service reserve fund is established, that may not exceed the maximum annual debt service on the bonds of the district for that fiscal year or any future fiscal year of the district secured in whole or in part by that special debt service reserve fund. In computing the annual debt service for any fiscal year, bonds deemed to have been paid in accordance with the defeasance provisions of the bond resolution authorizing the issuance of the bonds shall not be included in bonds outstanding on such date of computation. The annual debt service for any fiscal year is the amount of money equal to the aggregate of all of the following calculated on the assumption that the bonds will, after the date of computation, cease to be outstanding by reason, but only by reason, of the payment of bonds when due, and the payment when due, and application in accordance with the bond resolution authorizing those bonds, of all of the sinking fund payments payable at or after the date of computation:

AB1-engrossed,43,3 (a) All interest payable during the fiscal year on all bonds that are secured in whole or in part by the special debt service reserve fund and that are outstanding on the date of computation.

AB1-engrossed,43,6 (b) The principal amount of all of the bonds that are secured in whole or in part by the special debt service reserve fund, are outstanding on the date of computation and mature during the fiscal year.

AB1-engrossed,43,10 (c) All amounts specified in bond resolutions of the district authorizing any of the bonds that are secured in whole or in part by the special debt service reserve fund to be payable during the fiscal year as a sinking fund payment with respect to any of the bonds that mature after the fiscal year.

AB1-engrossed,43,14 (6) Valuation of securities. In computing the amount of a special debt service reserve fund for the purposes of this section, securities in which all or a portion of the special debt service reserve fund is invested shall be valued at par, or, if purchased at less than par, at their cost to the district.

AB1-engrossed,44,6 (7) State moral obligation pledge. If at any time of valuation the special debt service reserve fund requirement under sub. (5) for a special debt service reserve fund exceeds the amount of moneys in the special debt service reserve fund, the district board shall certify to the secretary of administration, the governor, the joint committee on finance and the governing body of each county in the district the amount necessary to restore the special debt service reserve fund to an amount equal to the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund. If this certification is received by the secretary of administration in an even-numbered year prior to the completion of the budget compilation under s. 16.43, the secretary shall include the certified amount in the budget compilation. In any case, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so certified to the appropriate special debt service reserve fund of the district. Recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that, if ever called upon to do so, it shall make this appropriation. This subsection applies only with respect to bonds the issuance of which has been approved by the joint committee on finance.

AB1-engrossed,44,10 (8) Information to joint committee on finance. The district shall provide to the cochairpersons of the joint committee on finance information concerning the district's projected cashflows and security features underlying each issuance of bonds under this subchapter.

AB1-engrossed,44,16 229.75 Bonds not public debt. (1) The state and each county in the district's jurisdiction are not liable on bonds and the bonds are not a debt of the state or either county in the district. All bonds shall contain a statement to this effect on the face of the bond. A bond issue does not, directly or indirectly or contingently, obligate the state or a political subdivision of the state to levy any tax or make any appropriation for payment of the bonds.

AB1-engrossed,45,2 (2) Nothing in this subchapter authorizes a district to create a debt of the state or a county in the district's jurisdiction, and all bonds issued by a district are payable, and shall state that they are payable, solely from the funds pledged for their payment in accordance with the bond resolution authorizing their issuance or in any trust indenture or mortgage or deed of trust executed as security for the bonds. The state and each county in the district's jurisdiction are not liable for the payment of the principal of or interest on a bond or for the performance of any pledge, mortgage, obligation or agreement that may be undertaken by a district. The breach of any pledge, mortgage, obligation or agreement undertaken by a district does not impose pecuniary liability upon the state or a county in the district's jurisdiction or a charge upon its general credit or against its taxing power.

AB1-engrossed,45,9 (3) Bonds issued by the district shall be secured only by the district's interest in any baseball park facilities, including any interest in a lease with the department of administration under s. 16.82 (7); by income from these facilities; by proceeds of bonds issued by the district and other amounts placed in a special redemption fund and investment earnings on such amounts; and by the taxes imposed by the district under subch. V of ch. 77. The district may not pledge its full faith and credit on the bonds and the bonds are not a liability of the district.

AB1-engrossed,45,16 229.76 State pledge. The state pledges to and agrees with the bondholders, and persons that enter into contracts with a district under this subchapter, that the state will not limit or alter the rights and powers vested in a district by this subchapter, including the rights and powers under s. 229.68 (15), before the district has fully met and discharged the bonds, and any interest due on the bonds, and has fully performed its contracts, unless adequate provision is made by law for the protection of the bondholders or those entering into contracts with a district.

AB1-engrossed,45,23 229.77 Trust funds. All moneys received under this subchapter, whether as proceeds from the sale of bonds or from any other source, are trust funds to be held and applied solely as provided in this subchapter. Any officer with whom, or any bank or trust company with which, those moneys are deposited shall act as trustee of those moneys and shall hold and apply the moneys for the purposes of this subchapter, subject to this subchapter and the bond resolution authorizing issuance of the bonds.

AB1-engrossed,46,6 229.79 Budgets; rates and charges; audit. A district shall adopt a calendar year as its fiscal year for accounting purposes. The district board shall annually prepare a budget for the district. Rates and other charges received by the district shall be used for the general expenses and capital expenditures of the district and to pay interest, amortization, and retirement charges on bonds. A district shall maintain an accounting system in accordance with generally accepted accounting principles and shall have its financial statements and debt covenants audited annually by an independent certified public accountant.

AB1-engrossed,46,8 229.81 Assistance by state agencies. (1) Definition. In this section, "state agency" has the meaning given in s. 20.001 (1).

AB1-engrossed,46,11 (2) Assistance with respect to granted land or property. All state agencies may provide assistance to a district if the district has entered into a lease agreement with the department of administration under s. 16.82 (7).

AB1-engrossed, s. 52 Section 52. 234.65 (1) (c) of the statutes is amended to read:

AB1-engrossed,46,16 234.65 (1) (c) The authority may not issue more than $200,000,000 in aggregate principal amount of bonds and notes under this section, excluding bonds or notes secured by a capital reserve fund pursuant to sub. (6) (am) and excluding bonds and notes issued to refund outstanding bonds or notes issued under this section.

AB1-engrossed, s. 53 Section 53. 234.65 (1) (h) of the statutes is created to read:

AB1-engrossed,46,20 234.65 (1) (h) Bonds and notes issued by the authority to finance an economic development loan for a project described under s. 234.01 (4n) (d) are not general obligations of the authority.

AB1-engrossed, s. 54a Section 54a. 234.65 (1) (hm) of the statutes is created to read:

AB1-engrossed,47,2 234.65 (1) (hm) The authority may not make a loan under this section for an economic development project described under s. 234.01 (4n) (d) to any professional baseball team unless the authority determines that collateral adequate to cover the amount of the loan has been pledged as security for the loan, exclusive of any ownership interest of the team in a stadium.

AB1-engrossed, s. 55 Section 55. 234.65 (6) (b) of the statutes is amended to read:

AB1-engrossed,47,9 234.65 (6) (b) The Except as provided in sub. (8), the authority may issue bonds and notes secured by a capital reserve fund pursuant to par. (am) in an aggregate principal amount not exceeding $35,000,000 $50,000,000 plus such additional amount as the authority considers necessary or desirable to fund a deposit into the capital reserve fund to pay costs of issuing the bonds and notes or to pay capitalized interest on the bonds and notes.

AB1-engrossed, s. 56 Section 56. 234.65 (8) and (10) of the statutes are created to read:

AB1-engrossed,47,16 234.65 (8) The authority shall not issue bonds or notes under this section to finance the construction of baseball park facilities, as defined in s. 229.65 (1), in relation to any single professional baseball park in an aggregate principal amount exceeding $50,000,000, excluding bonds and notes issued to fund a deposit into the capital reserve fund, to pay costs of issuing the bonds and notes or to pay capitalized interest on the bonds and notes.

AB1-engrossed,47,20 (10) The authority shall provide to the cochairpersons of the joint committee on finance information concerning the authority's projected cashflows and security features underlying each issuance of bonds to a business for the purpose of financing baseball park facilities, as defined in s. 229.65 (1).

AB1-engrossed, s. 57 Section 57. 704.31 (3) of the statutes is created to read:

AB1-engrossed,47,23 704.31 (3) This section does not apply to a lease to which a local professional baseball park district created under subch. III of ch. 229 is a party.

AB1-engrossed, s. 58 Section 58. Appropriation changes; administration.

AB1-engrossed,48,6 (1)  In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of administration under section 20.505 (1) (kc) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $336,200 for fiscal year 1995-96 and the dollar amount is increased by $790,100 for fiscal year 1996-97 to provide funding for services provided to local professional baseball park districts, as created by this act.

AB1-engrossed,48,7 (End)