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AB188-ASA1, s. 46 13Section 46. 25.46 (10m) of the statutes is repealed.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:
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, s. 57 17Section 57. 281.58 (7) (a) of the statutes is amended to read:
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, s. 60 10Section 60. 281.58 (8) (d) of the statutes is amended to read:
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.
AB188-ASA1, s. 61 17Section 61. 281.58 (8) (g) of the statutes is amended to read:
AB188-ASA1,21,2018 281.58 (8) (g) The sum of all of the financial assistance to a municipality
19approved under this section and s. 281.59 the clean water fund program for a project
20may not result in the municipality paying less than 30% of the cost of the project.
AB188-ASA1, s. 62 21Section 62. 281.58 (8) (i) of the statutes is amended to read:
AB188-ASA1,21,2422 281.58 (8) (i) After June 30, 1991, no municipality may receive for projects in
23a biennium
an amount that exceeds 35.2% of the amount approved by the legislature
24under s. 281.59 (3) (d) (3e) (b) for that biennium.
AB188-ASA1, s. 63 25Section 63. 281.58 (8) (L) (intro.) of the statutes is amended to read:
AB188-ASA1,22,5
1281.58 (8) (L) (intro.) The total amount of capital cost loans made under this
2section and s. 281.59
the clean water fund program may not exceed $120,000,000,
3and no capital cost loan funds may be released under this section and s. 281.59 the
4clean water fund program
until the secretary of administration has found in writing
5that all of the following facts have occurred:
AB188-ASA1, s. 64 6Section 64. 281.58 (9) (a) of the statutes is amended to read:
AB188-ASA1,22,157 281.58 (9) (a) After the department approves a municipality's facility plan
8submitted under sub. (8s), the municipality shall submit an application for
9participation to the department. The application shall be in such form and include
10such information as the department and the department of administration prescribe
11and shall include design plans and specifications that are approvable by the
12department under this chapter. The department shall review applications for
13participation in the clean water fund program under this section and s. 281.59. The
14department shall determine which applications meet the eligibility requirements
15and criteria under subs. (6), (7), (8), (8m) and (13).
AB188-ASA1, s. 65 16Section 65. 281.58 (9) (b) of the statutes is amended to read:
AB188-ASA1,22,2017 281.58 (9) (b) A municipality seeking financial assistance, except for a
18municipality seeking a capital cost loan, for a project under this section and s. 281.59
19the clean water fund program shall complete an environmental analysis sequence
20as required by the department by rule.
AB188-ASA1, s. 66 21Section 66. 281.58 (9) (c) of the statutes is amended to read:
AB188-ASA1,22,2522 281.58 (9) (c) If a municipality is serviced by more than one sewerage district
23for wastewater pollution abatement, each service area of the municipality shall be
24considered a separate municipality for purposes of obtaining financial assistance
25under this section and s. 281.59 the clean water fund program.
AB188-ASA1, s. 67
1Section 67. 281.58 (9) (e) of the statutes is amended to read:
AB188-ASA1,23,112 281.58 (9) (e) If the governor's recommendation, as set forth in the executive
3budget bill, for the amount under s. 281.59 (3) (d) (3e) (b), the amount available under
4s. 20.866 (2) (tc) or the amount available under s. 281.59 (4) (f) for a biennium is 85%
5or less of the amount of present value subsidy, general obligation bonding authority
6or revenue bonding authority, respectively, requested for that biennium in the
7biennial finance plan submitted under s. 281.59 (3) (bm) 1., the department shall
8inform municipalities that, if the governor's recommendations are approved, clean
9water fund program assistance during a fiscal year of that biennium will only be
10available to municipalities that submit financial assistance applications by the June
1130 preceding that fiscal year.
AB188-ASA1, s. 68 12Section 68. 281.58 (9) (f) of the statutes is amended to read:
AB188-ASA1,23,1413 281.58 (9) (f) The fees collected under par. (d) shall be credited to the clean
14water
environmental improvement fund.
AB188-ASA1, s. 69 15Section 69. 281.58 (9m) (c) of the statutes is amended to read:
AB188-ASA1,23,1816 281.58 (9m) (c) The department may approve an application under par. (a) in
17a year only after the amount under s. 281.59 (3) (d) (3e) (b) for the biennium in which
18that year falls has been approved by the legislature under s. 281.59 (3) (d) (3e) (b).
AB188-ASA1, s. 70 19Section 70. 281.58 (9m) (e) of the statutes is amended to read:
AB188-ASA1,23,2420 281.58 (9m) (e) 1. Except as provided under par. (f) and sub. (13), if a sufficient
21amount of subsidy is available under s. 281.59 (3) (d) (3e) (b) for the municipality's
22project, based on the calculation under s. 281.59 (3) (i) (3e) (f), when the department
23approves the application under par. (a), the department of administration shall
24allocate that amount to the project.
AB188-ASA1,24,4
12. If a sufficient amount of subsidy is not available under s. 281.59 (3) (d) (3e)
2(b)
for the municipality's project when the department approves the application
3under subd. 1., the department shall place the project on a list for allocation when
4additional subsidy becomes available.
AB188-ASA1, s. 71 5Section 71. 281.58 (9m) (f) (intro.) of the statutes is amended to read:
AB188-ASA1,24,116 281.58 (9m) (f) (intro.) If the amount approved under s. 281.59 (3) (d) (3e) (b),
7the amount available under s. 20.866 (2) (tc) or the amount available under s. 281.59
8(4) (f) for a biennium is 85% or less of the amount of present value subsidy, general
9obligation bonding authority or revenue bonding authority, respectively, requested
10for that biennium in the biennial finance plan submitted under s. 281.59 (3) (bm) 1.,
11all of the following apply:
AB188-ASA1, s. 72 12Section 72. 281.58 (9m) (g) of the statutes is amended to read:
AB188-ASA1,24,1513 281.58 (9m) (g) In allocating subsidy under this subsection, the department of
14administration shall adhere to the amount approved by the legislature for each
15biennium under s. 281.59 (3) (d) (3e) (b).
AB188-ASA1, s. 73 16Section 73. 281.58 (12) (a) (intro.) of the statutes is amended to read:
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