AB188-ASA1, s. 26 22Section 26. 20.505 (1) (y) of the statutes is created to read:
AB188-ASA1,11,223 20.505 (1) (y) General program operations — safe drinking water loan program;
24federal funds.
As a continuing appropriation, from the safe drinking water loan
25program federal revolving loan fund account in the environmental improvement

1fund, the amounts in the schedule for general program operations of the safe
2drinking water loan program under s. 281.59 or 281.61.
AB188-ASA1, s. 27 3Section 27. 20.536 (1) (ka) of the statutes is amended to read:
AB188-ASA1,11,74 20.536 (1) (ka) (title) General program operations; clean water environmental
5improvement
fund. All moneys received for providing services to the department of
6administration or the department of natural resources in administering ss. 25.43,
7281.58 and, 281.59, 281.60, 281.61 and 281.62, for general program operations.
AB188-ASA1, s. 28 8Section 28. 20.866 (1) (u) of the statutes is amended to read:
AB188-ASA1,11,179 20.866 (1) (u) Principal repayment and interest. A sum sufficient from moneys
10appropriated under sub. (2) (zp) and ss. 20.190 (1) (c), (i) and (j), 20.225 (1) (c), 20.245
11(1) (e), (2) (e) and (j), (4) (e) and (5) (e), 20.250 (1) (e), 20.255 (1) (d), 20.285 (1) (d), (db),
12(fh), (ih) and (kd) and (5) (i), 20.320 (1) (c) and (t) and (2) (c), 20.370 (7) (aa), (ac), (aq),
13(ar), (at), (ba), (ca), (cb), (cc), (cd), (ea) and (eq), 20.395 (6) (aq) and (ar), 20.410 (1) (e),
14(ec) and (ko) and (3) (e), 20.435 (2) (ee) and (6) (e), 20.465 (1) (d), 20.485 (1) (f) and
15(go) and (3) (t), 20.505 (5) (g) and (kc) and 20.867 (1) (a) and (b) and (3) (a), (b), (g),
16(h), (i) and (q) for the payment of principal and interest on public debt contracted
17under subchs. I and IV of ch. 18.
AB188-ASA1, s. 29 18Section 29. 20.866 (2) (tc) of the statutes is amended to read:
AB188-ASA1,12,219 20.866 (2) (tc) (title) Clean water fund program. From the capital improvement
20fund, a sum sufficient to be transferred to the clean water environmental
21improvement
fund for the purposes of the clean water fund program under ss. 281.58
22and 281.59. The state may contract public debt in an amount not to exceed
23$553,194,000 for this purpose. Of this amount, the amount needed to meet the
24requirements for state deposits under 33 USC 1382 is allocated for those deposits.

1Of this amount, $8,250,000 is allocated to fund the minority business development
2and training program under s. 66.905 (2) (b).
AB188-ASA1, s. 30 3Section 30. 20.866 (2) (td) of the statutes is created to read:
AB188-ASA1,12,84 20.866 (2) (td) Safe drinking water loan program. From the capital
5improvement fund, a sum sufficient to be transferred to the environmental
6improvement fund for the safe drinking water loan program under s. 281.61. The
7state may contract public debt in an amount not to exceed $22,000,000 for this
8purpose.
AB188-ASA1, s. 31 9Section 31. 25.17 (2) (d) of the statutes is amended to read:
AB188-ASA1,12,1610 25.17 (2) (d) Invest the clean water environmental improvement fund, and
11collect the principal and interest of all moneys loaned or invested from the clean
12water
environmental improvement fund, as directed by the department of
13administration under s. 281.59 (2m). In making such investment, the investment
14board shall accept any reasonable terms and conditions that the department of
15administration specifies and is relieved of any obligations relevant to prudent
16investment of the fund, including those set forth under ch. 881.
AB188-ASA1, s. 32 17Section 32. 25.43 (title) and (1) (intro.) of the statutes are amended to read:
AB188-ASA1,12,20 1825.43 (title) Clean water Environmental improvement fund. (1) (intro.)
19There is established a separate nonlapsible trust fund designated as the clean water
20environmental improvement fund, to consist of all of the following:
AB188-ASA1, s. 33 21Section 33. 25.43 (1) (am) of the statutes is created to read:
AB188-ASA1,12,2322 25.43 (1) (am) All capitalization grants provided by the federal government
23under 42 USC 300j-12.
AB188-ASA1, s. 34 24Section 34. 25.43 (1) (b) of the statutes is amended to read:
AB188-ASA1,13,3
125.43 (1) (b) All state funds appropriated or transferred to the clean water
2environmental improvement fund to meet the requirements for state deposits under
333 USC 1382.
AB188-ASA1, s. 35 4Section 35. 25.43 (1) (bm) of the statutes is created to read:
AB188-ASA1,13,75 25.43 (1) (bm) All state funds appropriated or transferred to the environmental
6improvement fund to meet the requirements for state deposits under 42 USC
7300j-12
.
AB188-ASA1, s. 36 8Section 36. 25.43 (1) (c) of the statutes is amended to read:
AB188-ASA1,13,109 25.43 (1) (c) All other appropriations and transfers of state funds to the clean
10water
environmental improvement fund.
AB188-ASA1, s. 37 11Section 37. 25.43 (1) (d) of the statutes is amended to read:
AB188-ASA1,13,1312 25.43 (1) (d) All gifts, grants and bequests to the clean water environmental
13improvement
fund.
AB188-ASA1, s. 38 14Section 38. 25.43 (1) (e) of the statutes is amended to read:
AB188-ASA1,13,1715 25.43 (1) (e) All repayments of principal and payment payments of interest on
16loans made from the clean water environmental improvement fund and on
17obligations acquired by the department of administration under s. 281.59 (12).
AB188-ASA1, s. 39 18Section 39. 25.43 (1) (f) of the statutes is amended to read:
AB188-ASA1,13,2119 25.43 (1) (f) All moneys received by the clean water environmental
20improvement
fund from the proceeds of the sale of general or revenue obligations
21under ch. 18 for the purpose of s. 20.866 (2) (tc) or (td) or 281.59 (4).
AB188-ASA1, s. 40 22Section 40. 25.43 (1) (h) of the statutes is amended to read:
AB188-ASA1,13,2323 25.43 (1) (h) The fees imposed under s. ss. 281.58 (9) (d) and 281.60 (11m).
AB188-ASA1, s. 41 24Section 41. 25.43 (2) (a) of the statutes is amended to read:
AB188-ASA1,14,6
125.43 (2) (a) There is established in the clean water environmental
2improvement
fund a clean water fund program federal revolving loan fund account
3consisting of the capitalization grants under sub. (1) (a) and (b) and, except as
4provided under sub. (2m) (b),
all repayments under sub. (1) (e) and (g) of
5capitalization grants under sub. (1) (a) and (b) and all moneys transferred to the
6account under sub. (2m) (a)
.
AB188-ASA1, s. 42 7Section 42. 25.43 (2) (am) of the statutes is created to read:
AB188-ASA1,14,128 25.43 (2) (am) There is established in the environmental improvement fund a
9safe drinking water loan program federal revolving loan fund account consisting of
10the capitalization grants under sub. (1) (am) and (bm), except as provided under sub.
11(2m) (a), all repayments under sub. (1) (e) of capitalization grants under sub. (1) (am)
12and (bm) and all moneys transferred to the account under sub. (2m) (b).
AB188-ASA1, s. 43 13Section 43. 25.43 (2) (b) of the statutes is amended to read:
AB188-ASA1,14,1614 25.43 (2) (b) There is established in the clean water environmental
15improvement
fund a state revolving loan fund account consisting of all moneys in the
16fund not included in accounts under par. (a), (am) or (c).
AB188-ASA1, s. 44 17Section 44. 25.43 (2) (c) of the statutes is amended to read:
AB188-ASA1,14,2318 25.43 (2) (c) The department of administration may establish and change
19accounts in the clean water environmental improvement fund other than those
20under pars. (a), (am) and (b). The department of administration shall consult the
21department of natural resources before establishing or changing an account that is
22needed to administer the program programs under s. ss. 281.58 and , 281.59 and
23281.61
.
AB188-ASA1, s. 41m 24Section 41m. 25.43 (2m) of the statutes is created to read:
AB188-ASA1,15,3
125.43 (2m) (a) In any year, the governor may transfer an amount that does not
2exceed 33% of a capitalization grant under sub. (1) (am) provided in that year from
3the account under sub. (2) (am) to the account under sub. (2) (a).
AB188-ASA1,15,64 (b) In any year, the governor may transfer an amount that does not exceed 33%
5of a capitalization grant under sub. (1) (am) provided in that year from the account
6under sub. (2) (a) to the account under sub. (2) (am).
AB188-ASA1, s. 45 7Section 45. 25.43 (3) of the statutes is amended to read:
AB188-ASA1,15,128 25.43 (3) Except for the purpose of investment as provided in s. 25.17 (2) (d),
9the clean water environmental improvement fund may be used only for the purposes
10authorized under ss. 20.320 (1) (r), (s) and, (sm) and (t) and (2) (s) and (x), 20.370 (2)
11(mt) and, (mx) and (mz), (6) (mu) and, (mx) and (my) and (8) (mr), 20.505 (1) (v) and,
12(x) and (y), 281.58 and, 281.59, 281.60, 281.61 and 281.62.
AB188-ASA1, s. 46 13Section 46. 25.46 (10m) of the statutes is repealed.
AB188-ASA1, s. 47 14Section 47. 66.36 (intro.) of the statutes is amended to read:
AB188-ASA1,15,19 1566.36 (title) Municipal financing; clean water fund project program
16costs.
(intro.) Subject to the terms and conditions of its financial assistance
17agreement, a municipality may repay financial assistance costs received from under
18the clean water fund program under ss. 281.58 and 281.59 by any lawful method,
19including any one of the following methods or any combination thereof:
AB188-ASA1, s. 48 20Section 48. 234.86 of the statutes is created to read:
AB188-ASA1,15,22 21234.86 Drinking water loan guarantee program. (1) Definitions. In this
22section:
AB188-ASA1,15,2523 (a) "Community water system" means a public water system that serves at
24least 15 service connections used by year-round residents or that regularly serves
25at least 25 year-round residents.
AB188-ASA1,16,1
1(b) "Department" means the department of natural resources.
AB188-ASA1,16,22 (c) "Local governmental unit" has the meaning given in s. 281.61 (1) (a).
AB188-ASA1,16,43 (d) "Noncommunity water system" means a public water system that is not a
4community water system.
AB188-ASA1,16,55 (e) "Public water system" has the meaning given in s. 281.61 (1) (c).
AB188-ASA1,16,8 6(2) Guarantee requirements. The authority may use money from the
7Wisconsin drinking water reserve fund under s. 234.933 to guarantee a loan under
8this section if all of the following apply:
AB188-ASA1,16,99 (a) The borrower is not a local governmental unit and is one of the following:
AB188-ASA1,16,1010 1. The owner of a community water system.
AB188-ASA1,16,1111 2. The owner of a noncommunity water system and is not operated for profit.
AB188-ASA1,16,1212 (b) The loan qualifies as an eligible loan under sub. (3).
AB188-ASA1,16,1413 (c) The lender is a financial institution that enters into an agreement under s.
14234.933 (3) (a).
AB188-ASA1,16,15 15(3) Eligible loans. A loan is an eligible loan if all of the following apply:
AB188-ASA1,16,1916 (a) The department determines that the loan will facilitate compliance with
17national primary drinking water regulations under 42 USC 300g-1 or otherwise
18significantly further the health protection objectives of the Safe Drinking Water Act,
1942 USC 300f to 300j-26.
AB188-ASA1,16,2120 (b) The department determines that the loan satisfies the requirements under
21s. 281.62 (2).
AB188-ASA1,17,3 22(4) Guarantee of collection. (a) Subject to par. (b), the authority may
23guarantee collection of a percentage, not exceeding 80%, of the principal of any loan
24eligible for a guarantee under this section. The authority shall establish the
25percentage of the unpaid principal of an eligible loan that will be guaranteed using

1the procedures described in the guarantee agreement under s. 234.933 (3) (a). The
2authority may establish a single percentage for all guaranteed loans or establish
3different percentages for eligible loans on an individual basis.
AB188-ASA1,17,54 (b) Except as provided in s. 234.933 (4), the total outstanding principal amount
5of all guaranteed loans under par. (a) may not exceed $3,000,000.
AB188-ASA1, s. 49 6Section 49. 234.933 of the statutes is created to read:
AB188-ASA1,17,9 7234.933 Wisconsin drinking water reserve fund. (1) Definition. In this
8section, "drinking water loan guarantee program" means the program under s.
9234.86.
AB188-ASA1,17,13 10(2) Establishment of fund. There is established under the jurisdiction and
11control of the authority, for the purpose of providing funds for guaranteeing loans
12under s. 234.86, a Wisconsin drinking water reserve fund, consisting of all of the
13following:
AB188-ASA1,17,1614 (a) Moneys transferred to the authority from the appropriation accounts under
15s. 20.320 (2) (s) and (x) or received by the authority for the Wisconsin drinking water
16reserve fund from any other source.
AB188-ASA1,17,1817 (b) Any income from investment of money in the Wisconsin drinking water
18reserve fund by the authority under s. 234.03 (18).
AB188-ASA1,17,23 19(3) Program administration. (a) The authority shall enter into a guarantee
20agreement with any bank, production credit association, credit union, savings bank,
21savings and loan association or other person who wishes to participate in the
22drinking water loan guarantee program. The authority may determine all of the
23following, consistent with the terms of the loan guarantee program:
AB188-ASA1,17,2424 1. The form of the agreement.
AB188-ASA1,18,2
12. Any conditions upon which the authority may refuse to enter into such an
2agreement.
AB188-ASA1,18,43 3. Any procedures required to carry out the agreement, including default
4procedures and procedures for determining the guaranteed percentage of each loan.
AB188-ASA1,18,85 (b) The authority may not use any moneys other than those in the Wisconsin
6drinking water reserve fund for the drinking water loan guarantee program, and
7may not use moneys in the Wisconsin drinking water reserve fund for any programs
8other than the drinking water loan guarantee program.
AB188-ASA1,18,129 (c) The authority may establish an eligibility criteria review panel, consisting
10of experts in finance and in the subject area of the drinking water loan guarantee
11program, to provide advice about lending requirements and issues related to the
12drinking water loan guarantee program.
AB188-ASA1,18,1913 (d) The authority shall ensure that the cash balance in the Wisconsin drinking
14water reserve fund is sufficient to fund guarantees under the drinking water loan
15guarantee program at a ratio of $1 of reserve funding to $4 of total outstanding
16guaranteed principal that the authority may guarantee under the program and to
17pay all outstanding claims under the program. The authority shall regularly
18monitor the cash balance in the Wisconsin drinking water reserve fund to ensure
19that the cash balance is sufficient for the purposes specified in this paragraph.
AB188-ASA1,19,4 20(4) Increases or decreases in loan guarantees. The authority may request
21the joint committee on finance to take action under s. 13.10 to permit the authority
22to increase or decrease the total outstanding guaranteed principal amount of loans
23that it may guarantee under the drinking water loan guarantee program. Included
24with its request, the authority shall provide a projection, for the next June 30, that
25compares the amounts required on that date to pay outstanding claims and to fund

1guarantees under the drinking water loan guarantee program, and the balance
2remaining in the Wisconsin drinking water reserve fund on that date after deducting
3such amounts, if the increase or decrease is approved, with such amounts and the
4balance remaining, if the increase or decrease is not approved.
AB188-ASA1,19,8 5(5) Annual report. Annually, the authority shall report on the number and
6total dollar amount of guaranteed loans under the drinking water loan guarantee
7program, the default rate on the loans and any other information on the program that
8the authority determines is significant.
AB188-ASA1,19,12 9(6) Moral obligation. Recognizing its moral obligation, the legislature
10expresses its expectation that, if called upon to do so, it shall make an appropriation
11to meet all demands for funds guaranteed by the Wisconsin drinking water reserve
12fund.
AB188-ASA1, s. 50 13Section 50. 281.58 (1) (ai) of the statutes is created to read:
AB188-ASA1,19,1514 281.58 (1) (ai) "Clean water fund program" means the program administered
15under this section with financial management provided under s. 281.59.
AB188-ASA1, s. 51 16Section 51. 281.58 (1) (cg) of the statutes is amended to read:
AB188-ASA1,19,1917 281.58 (1) (cg) "Market interest rate" means the interest at the effective rate
18of a revenue obligation issued by the state to fund a project loan or a portion of a
19project loan under this section and s. 281.59 the clean water fund program.
AB188-ASA1, s. 52 20Section 52. 281.58 (2m) (a) of the statutes is amended to read:
AB188-ASA1,19,2221 281.58 (2m) (a) Administer its responsibilities under this section and s. 281.59
22the clean water fund program.
AB188-ASA1, s. 53 23Section 53. 281.58 (3m) (a) of the statutes is amended to read:
AB188-ASA1,20,3
1281.58 (3m) (a) A list of wastewater treatment projects that the department
2estimates will apply for financial assistance under this section and s. 281.59 the
3clean water fund program
during the next biennium.
AB188-ASA1, s. 54 4Section 54. 281.58 (6) (a) (intro.) of the statutes is amended to read:
AB188-ASA1,20,75 281.58 (6) (a) (intro.) The department may determine whether a municipality
6is eligible for financial assistance under this section and s. 281.59 the clean water
7fund program
for any of the following:
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