Amendment ASA1-AB188

AB188-ASA1, s. 112 Section 112. 281.59 (13m) of the statutes is amended to read:

AB188-ASA1,37,6 281.59 (13m) Legislative moral obligation. The building commission may, at the time the loan is made, by resolution designate a loan made under this section and s. 281.58 the clean water fund program as one to which this subsection applies. If at any time the payments received or expected to be received from a municipality on any loan so designated are pledged to secure revenue obligations of the state issued pursuant to subch. II of ch. 18 and are insufficient to pay when due principal of and interest on such loan, the department of administration shall certify the amount of such insufficiency to the secretary of administration, the governor and the joint committee on finance. If the certification is received by the secretary of administration in an even-numbered year before the completion of the budget under s. 16.43, the secretary of administration shall include the certified amount in the budget compilation. In any event, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so requested for the purpose of payment of the revenue obligation secured thereby. 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 the appropriation.

AB188-ASA1, s. 113 Section 113. 281.59 (13s) of the statutes is amended to read:

AB188-ASA1,37,11 281.59 (13s) Powers. The department of administration may audit, or contract for audits of, projects receiving financial assistance under this section and s. 281.58 the clean water fund program, the safe drinking water loan program and the land recycling loan program.

AB188-ASA1, s. 114 Section 114. 281.59 (14) of the statutes is amended to read:

AB188-ASA1,37,15 281.59 (14) Rules. The department of administration shall promulgate rules that are necessary for the proper execution of this section and of its responsibilities under s. ss. 281.58, 281.60 and 281.61.

AB188-ASA1, s. 115 Section 115. 281.60 of the statutes is created to read:

AB188-ASA1,37,17 281.60 Land recycling loan program. (1) Definitions. In this section:

AB188-ASA1,37,18 (a) "Landfill" has the meaning given in s. 289.01 (20).

AB188-ASA1,37,20 (b) "Land recycling loan program" means the program administered under this section with financial management provided under s. 281.59.

AB188-ASA1,37,23 (c) "Market interest rate" means the interest at the effective rate of a revenue obligation issued by this state to fund a loan or portion of a loan for a clean water fund program project under s. 281.58.

AB188-ASA1,37,24 (d) "Political subdivision" means a city, village, town or county.

AB188-ASA1,37,25 (e) "Site or facility" has the meaning given in s. 292.35 (1) (f).

AB188-ASA1,38,11 (2) General. The department and the department of administration may administer a program to provide financial assistance to political subdivisions for projects to remedy environmental contamination of sites or facilities at which environmental contamination has affected groundwater or surface water or threatens to affect groundwater or surface water. The department and the department of administration may provide financial assistance under this section to a political subdivision only if the political subdivision owns the contaminated site or facility. The department and the department of administration may not provide financial assistance under this section to remedy environmental contamination at a site or facility that is not a landfill if the political subdivision caused the environmental contamination.

AB188-ASA1,38,13 (2r) Methods of providing financial assistance. The following methods of providing financial assistance may be used under the land recycling loan program:

AB188-ASA1,38,15 (a) Making loans below the market interest rate for projects described in sub. (2).

AB188-ASA1,38,18 (b) Purchasing or refinancing the obligation of a political subdivision if the obligation was incurred to finance the cost of a project described in sub. (2) and the obligation was initially incurred after May 17, 1988.

AB188-ASA1,38,21 (c) Guaranteeing, or purchasing insurance for, obligations incurred to finance the cost of projects described in sub. (2) if the guarantee or insurance will provide credit market access or reduce interest rates.

AB188-ASA1,38,25 (d) Providing payments to the board of commissioners of public lands to reduce principal or interest payments, or both, on loans made to political subdivisions under subch. II of ch. 24 by the board of commissioners of public lands for projects that are eligible for financial assistance under the land recycling loan program.

AB188-ASA1,39,5 (3) Notice of intent to apply. (a) A political subdivision shall submit notice of its intent to apply for financial assistance under the land recycling loan program. A political subdivision shall submit the notice at least 6 months before the beginning of the fiscal biennium in which it will request to receive funding. The notice shall be in a form prescribed by the department and the department of administration.

AB188-ASA1,39,7 (b) The department may waive par. (a) upon the written request of a political subdivision.

AB188-ASA1,39,15 (5) Application. After submitting a notice of intent to apply under sub. (3) (a) or obtaining a waiver under sub. (3) (b), a political subdivision shall submit an application for land recycling loan program financial assistance to the department. The applicant shall submit the application before the April 30 preceding the beginning of the fiscal year in which the applicant is requesting to receive the financial assistance. The application shall be in the form and include the information required by the department and the department of administration. An applicant may not submit more than one application per project per year.

AB188-ASA1,39,24 (6) Priority list. The department shall establish a priority list that ranks each land recycling loan program project. The department shall promulgate rules for determining project rankings based on the potential of projects to reduce environmental pollution and threats to human health and, for sites and facilities that are not landfills, the extent to which projects will prevent the development of undeveloped land by making land available for redevelopment after a cleanup is conducted. Before the department establishes the priority list, the department shall consider the recommendations of the department of administration and the department of commerce.

AB188-ASA1,40,2 (7) Approval of application. The department shall approve an application received under sub. (5) after all of the following occur:

AB188-ASA1,40,3 (a) The project is ranked on the priority list under sub. (6).

AB188-ASA1,40,5 (b) The department determines that the project meets the eligibility requirements under this section.

AB188-ASA1,40,7 (c) The department of administration determines that the political subdivision will meet the requirements of s. 281.59 (9) (b).

AB188-ASA1,40,9 (d) The legislature has approved an amount under s. 281.59 (3m) (b) for the biennium.

AB188-ASA1,40,17 (8) Funding list; allocation of funding. (a) The department shall establish a funding list for each fiscal year that ranks projects of political subdivisions that submit approvable applications under sub. (5) before the April 30 preceding the beginning of the fiscal year in the same order that they appear on the priority list under sub. (6). If sufficient funds are not available to fund all approved applications for financial assistance, the department of administration shall allocate funding to projects that are approved under sub. (7) in the order that they appear on the funding list, except as follows:

AB188-ASA1,40,19 1. The department of administration may not allocate more than 40% of the available funds in each fiscal year to projects to remedy contamination at landfills.

AB188-ASA1,40,21 2. In any biennium, no political subdivision may receive more than 25% of the amount established under s. 281.59 (3m) (b) for that biennium.

AB188-ASA1,40,24 (b) In allocating subsidy under this subsection, the department of administration shall adhere to the amount approved by the legislature for each biennium under s. 281.58 (3m) (b).

AB188-ASA1,41,3 (8m) Conditions of financial assistance. As a condition of receiving financial assistance under the land recycling loan program, a political subdivision shall do all of the following:

AB188-ASA1,41,5 (a) Establish a dedicated source of revenue for the repayment of the financial assistance.

AB188-ASA1,41,8 (b) Comply with those provisions of 33 USC 1381 to 1387, this chapter, and the rules and regulations promulgated under those provisions, that the department specifies.

AB188-ASA1,41,10 (c) Allow access to the project by representatives of the department for the purpose of making inspections.

AB188-ASA1,41,18 (9) Financial assistance commitments. The department and the department of administration may, at the request of a political subdivision, issue a notice of financial assistance commitment after the political subdivision's application for land recycling loan program financial assistance has been approved and funding has been allocated under sub. (8) for the political subdivision's project. The notice of financial assistance commitment shall specify the conditions that the political subdivision must meet to secure financial assistance and shall include the estimated repayment schedules and other terms of financial assistance.

AB188-ASA1,41,22 (10) Deadline for closing. If funding is allocated to a project under sub. (8) for a loan and the loan is not closed before April 30 of the year following the year in which funding is allocated, the department of administration shall release the funding allocated to the project.

AB188-ASA1,41,24 (11) Loan interest rates. The interest rate on a land recycling loan program loan shall be 55% of market interest rate.

AB188-ASA1,42,10 (11m) Service fee. The department and the department of administration shall jointly charge and collect an annual service fee for reviewing and acting upon land recycling loan program applications and servicing financial assistance agreements. The fee shall be in addition to interest payments at the rate under sub. (11). For the 1997-99 fiscal biennium, the service fee shall be 0.5% of the loan balance. Fee amounts for later biennia shall be established in the biennial finance plan under s. 281.59 (3) (a) 8. The department and the department of administration shall specify in the biennial finance plan a fee designed to cover the costs of reviewing and acting upon land recycling loan program applications and servicing financial assistance agreements.

AB188-ASA1,42,14 (12) Sale of site or facility. (a) A political subdivision may not sell a site or facility, or portion of a site or facility, for which the political subdivision has received a loan under this section, while the loan is outstanding, for less than fair market value.

AB188-ASA1,42,17 (b) If a political subdivision sells a site or facility, or portion of a site or facility, for which the political subdivision has received a loan under this section, the political subdivision shall do the following:

AB188-ASA1,42,20 1. If the sale proceeds are less than or equal to the remaining loan balance, pay the sale proceeds to the department of administration to repay all or a portion of the loan.

AB188-ASA1,42,24 2. If the sale proceeds are greater than the remaining loan balance but less than or equal to the cost of the land plus the cost of the cleanup, pay an amount equal to the remaining loan balance to the department of administration and retain the remainder of the sale proceeds.

AB188-ASA1,43,5 3. If the sale proceeds are greater than the cost of the land plus the cost of the cleanup, pay to the department of administration an amount equal to the remaining loan balance plus the lesser of 75% of the amount by which the sale proceeds exceed the cost of the land plus the cost of the cleanup or the amount of subsidy incurred for the project and retain the remainder of the sale proceeds.

AB188-ASA1,43,6 (13) Duties of the department. The department shall do all of the following:

AB188-ASA1,43,8 (a) Seek approval of the federal environmental protection agency for the use of funds under 33 USC 1381 to 1387 for the land recycling loan program.

AB188-ASA1,43,10 (b) Promulgate rules establishing eligibility criteria for applicants and projects under this section.

AB188-ASA1,43,12 (c) Promulgate rules that are necessary for the execution of its responsibilities under the land recycling loan program.

AB188-ASA1,43,14 (d) Cooperate with the department of administration in administering the land recycling loan program.

AB188-ASA1,43,16 (e) Submit a biennial budget request under s. 16.42 for the land recycling loan program.

AB188-ASA1,43,18 (f) Have the lead role with the federal environmental protection agency concerning the land recycling loan program.

AB188-ASA1,43,21 (g) Have the lead role with political subdivisions in providing land recycling loan program information, and cooperate with the department of administration in providing that information to political subdivisions.

AB188-ASA1,43,23 (h) Periodically inspect land recycling loan program projects to determine project compliance with the requirements of this section.

AB188-ASA1,44,3 (i) By May 1 of each even-numbered year, prepare and submit to the department of administration a biennial needs list that includes all of the following information:

AB188-ASA1,44,6 1. A list of land recycling loan program projects that the department estimates will apply for financial assistance under the land recycling loan program during the next biennium.

AB188-ASA1,44,9 2. The estimated cost and estimated construction schedule of each project on the list under subd. 1., and the total of the estimated costs of all projects on the list under subd. 1.

AB188-ASA1,44,10 3. The estimated rank of each project on the priority list under sub. (6).

AB188-ASA1, s. 116 Section 116. 281.61 of the statutes is created to read:

AB188-ASA1,44,12 281.61 Safe drinking water loan program. (1) Definitions. In this section:

AB188-ASA1,44,15 (a) "Local governmental unit" means a city, village, town, county, town sanitary district, public inland lake protection and rehabilitation district or municipal water district.

AB188-ASA1,44,18 (b) "Market interest rate" means the interest at the effective rate of a revenue obligation issued by this state to fund a loan or portion of a loan for a clean water fund program project under s. 281.58.

AB188-ASA1,44,22 (c) "Public water system" means a water system providing piped water to the public for human consumption if the water system has at least 15 service connections or regularly serves an average of at least 25 individuals daily for at least 60 days each year.

AB188-ASA1,44,24 (d) "Safe drinking water loan program" means the program administered under this section, with financial management provided under s. 281.59.

AB188-ASA1,45,6 (2) General. The department and the department of administration shall administer a program to provide financial assistance to local governmental units for projects for the planning, designing, construction or modification of public water systems, if the projects will facilitate compliance with national primary drinking water regulations under 42 USC 300g-1 or otherwise significantly further the health protection objectives of the Safe Drinking Water Act, 42 USC 300f to 300j-26.

AB188-ASA1,45,13 (2g) Ineligible projects. A local governmental unit is not eligible for financial assistance under this section if the local governmental unit does not have the technical, managerial or financial capacity to ensure compliance with the Safe Drinking Water Act, 42 USC 300f to 300j-26, or the public water system operated by the local governmental unit is in significant noncompliance with any requirement of a primary drinking water regulation or variance under 42 USC 300g-1 unless the financial assistance will ensure compliance with the Safe Drinking Water Act.

AB188-ASA1,45,16 (2r) Methods of providing financial assistance. The following methods of providing financial assistance may be used under the safe drinking water loan program:

AB188-ASA1,45,18 (a) Making loans below the market interest rate for projects described in sub. (2).

AB188-ASA1,45,21 (b) Purchasing or refinancing the obligation of a local governmental unit if the obligation was incurred to finance the cost of a project described in sub. (2) and the obligation was initially incurred after July 1, 1993.

AB188-ASA1,45,24 (c) Guaranteeing, or purchasing insurance for, obligations incurred to finance the cost of projects described in sub. (2) if the guarantee or insurance will provide credit market access or reduce interest rates.

AB188-ASA1,46,4 (d) Providing payments to the board of commissioners of public lands to reduce principal or interest payments, or both, on loans made to local governmental units under subch. II of ch. 24 by the board of commissioners of public lands for projects that are eligible for financial assistance under the safe drinking water loan program.

AB188-ASA1,46,9 (3) Notice of intent to apply. (a) A local governmental unit shall submit notice of its intent to apply for financial assistance under the safe drinking water loan program at least 6 months before the beginning of the fiscal biennium in which it intends to receive the financial assistance. The notice shall be in a form prescribed by the department and the department of administration.

AB188-ASA1,46,12 (b) If a local governmental unit does not apply for financial assistance by April 30 of the 2nd year following the year in which it submitted notice under par. (a), the local governmental unit shall submit a new notice under par. (a).

AB188-ASA1,46,14 (c) The department may waive par. (a) or (b) upon the written request of a local governmental unit.

AB188-ASA1,46,17 (4) Engineering report. A local governmental unit seeking financial assistance for a project under this section shall submit an engineering report, as required by the department by rule.

AB188-ASA1,47,2 (5) Application. After the department approves a local governmental unit's engineering report submitted under sub. (4), the local governmental unit shall submit an application for safe drinking water financial assistance to the department. The applicant shall submit the application before the April 30 preceding the beginning of the fiscal year in which the applicant wishes to receive the financial assistance. The application shall be in the form and include the information required by the department and the department of administration and shall include plans and specifications that are approvable by the department under this section. An applicant may not submit more than one application per project per year.

AB188-ASA1,47,9 (6) Priority list. The department shall establish a priority list that ranks each safe drinking water loan program project. The department shall promulgate rules for determining project rankings that, to the extent possible, give priority to projects that address the most serious risks to human health, that are necessary to ensure compliance with the Safe Drinking Water Act, 42 USC 300f to 300j-26, and that assist local governmental units that are most in need on a per household basis, according to affordability criteria specified in the rules.

AB188-ASA1,47,11 (7) Approval of application. The department shall approve an application received under sub. (5) after all of the following occur:

AB188-ASA1,47,12 (a) The project is ranked on the priority list under sub. (6).

AB188-ASA1,47,14 (b) The department determines that the project meets the eligibility requirements under this section.

AB188-ASA1,47,16 (c) The department of administration determines that the local governmental unit will meet the requirements of s. 281.59 (9) (b).

AB188-ASA1,47,18 (d) The legislature has approved an amount under s. 281.59 (3s) (b) 1. for the biennium.

AB188-ASA1,47,25 (8) Funding list; allocation of funding. (a) The department shall establish a funding list for each fiscal year that ranks projects of local governmental units that submit approvable applications under sub. (5) in the same order that they appear on the priority list under sub. (6). If sufficient funds are not available to fund all approved applications for financial assistance, the department of administration shall allocate funding to projects that are approved under sub. (7) in the order that they appear on the funding list, except as follows:

AB188-ASA1,48,4 1. The department of administration shall allocate to projects for public water systems that regularly serve fewer than 10,000 persons 15% of the available funds in each fiscal year or such lesser amount that fully funds the eligible projects for those public water systems.

AB188-ASA1,48,6 2. In any biennium, no local governmental unit may receive more than 25% of the amount established under s. 281.59 (3s) (b) for that biennium.

AB188-ASA1,48,9 (b) In allocating subsidy under this subsection, the department of administration shall adhere to the amount approved by the legislature for each biennium under s. 281.59 (3s) (b).

AB188-ASA1,48,12 (8m) Conditions of financial assistance. As a condition of receiving financial assistance under the safe drinking water loan program, a local governmental unit shall do all of the following:

AB188-ASA1,48,14 (a) Establish a dedicated source of revenue for the repayment of the financial assistance.

AB188-ASA1,48,17 (b) Comply with those provisions of 42 USC 300f to 300j-26 and this chapter and the regulations and rules promulgated under those provisions that the department specifies.