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-ASA1,12,2322
25.43
(1) (am) All capitalization grants provided by the federal government
23under
42 USC 300j-12.
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-ASA1,13,75
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-ASA1,13,109
25.43
(1) (c) All other appropriations and transfers of state funds to the
clean
10water environmental improvement fund.
AB188-ASA1,13,1312
25.43
(1) (d) All gifts, grants and bequests to the
clean water environmental
13improvement fund.
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-ASA1,13,2119
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-ASA1,13,2323
25.43
(1) (h) The fees imposed under
s. ss. 281.58 (9) (d)
and 281.60 (11m).
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-ASA1,14,128
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-ASA1,14,1614
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-ASA1,14,2318
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-ASA1,15,3
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-ASA1,15,128
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-ASA1,15,19
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-ASA1,15,22
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-ASA1,17,9
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-ASA1,19,1514
281.58
(1) (ai) "Clean water fund program" means the program administered
15under this section with financial management provided under s. 281.59.
AB188-ASA1,19,1917
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-ASA1,19,2221
281.58
(2m) (a) Administer its responsibilities under
this section and s. 281.59 22the clean water fund program.
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:
AB188-ASA1, s. 55
8Section
55. 281.58 (6) (b) (intro.) of the statutes is amended to read:
AB188-ASA1,20,109
281.58
(6) (b) (intro.) The following methods of providing financial assistance
10may be used under
this section and s. 281.59 the clean water fund program:
AB188-ASA1, s. 56
11Section
56. 281.58 (6) (b) 8. of the statutes is amended to read:
AB188-ASA1,20,1612
281.58
(6) (b) 8. Providing payments to the board of commissioners of public
13lands to reduce principal or interest payments, or both, on loans made to
14municipalities under subch. II of ch. 24 by the board of commissioners of public lands
15for projects that are eligible for financial assistance under
this section and s. 281.59 16the clean water fund program.
AB188-ASA1,21,218
281.58
(7) (a) The department shall, by rule, establish criteria for determining
19which applicants and which projects are eligible to receive financial assistance under
20this section and s. 281.59 the clean water fund program. The primary criteria for
21eligibility shall be water quality and public health. The rules for
clean water fund 22projects funded from the account under s. 25.43 (2) (a) shall be consistent with
33
23USC 1251 to
1376 and
33 USC 1381 to
1387 and the regulations promulgated
24thereunder. The rules for
clean water fund projects funded from the account under
1s. 25.43 (2) (b) may be consistent with
33 USC 1251 to
1376 and
33 USC 1381 to
1387 2and the regulations promulgated thereunder.
AB188-ASA1, s. 58
3Section
58. 281.58 (7) (b) (intro.) of the statutes is amended to read:
AB188-ASA1,21,64
281.58
(7) (b) (intro.) The department may determine whether a municipality
5is eligible for financial assistance under
this section and s. 281.59 the clean water
6fund program for any of the following types of projects:
AB188-ASA1, s. 59
7Section
59. 281.58 (8) (a) (intro.) of the statutes is amended to read:
AB188-ASA1,21,98
281.58
(8) (a) (intro.) The following are not eligible for financial assistance from
9the clean water fund
under this section and s. 281.59
program:
AB188-ASA1,21,1611
281.58
(8) (d) An unsewered municipality that is not constructing a treatment
12work and will be disposing of wastewater in the treatment work of another
13municipality is not eligible for financial assistance under
this section and s. 281.59 14the clean water fund program until it executes an agreement under s. 66.30 with
15another municipality to receive, treat and dispose of the wastewater of the
16unsewered municipality.