AB188,23,64 281.59 (3) (a) 2. The total amount of financial assistance planned to be provided
5or committed to municipalities for projects under the clean water fund program and
6the safe drinking water loan program
during the 4 fiscal years of the next 2 biennia.
AB188, s. 88 7Section 88. 281.59 (3) (a) 4. of the statutes is repealed.
AB188, s. 89 8Section 89. 281.59 (3) (a) 5. of the statutes is amended to read:
AB188,23,139 281.59 (3) (a) 5. Audited financial statements of the past operations and
10activities of the program under this section and s. 281.58, the estimated fund capital
11available in each of the next 4 fiscal years, and the projected clean water fund balance
12for each of the next 20 years given existing obligations and financial conditions
clean
13water fund program and the safe drinking water loan program
.
AB188, s. 90 14Section 90. 281.59 (3) (a) 6. of the statutes is amended to read:
AB188,23,1915 281.59 (3) (a) 6. An amount equal to the estimated present value of subsidies
16for all clean water fund program loans and grants expected to be made for the
17wastewater treatment projects listed in the biennial needs list under s. 281.58 (3m),
18discounted at a rate of 7% per year to the first day of the biennium for which the
19biennial finance plan is prepared.
AB188, s. 91 20Section 91. 281.59 (3) (a) 6m. of the statutes is created to read:
AB188,23,2421 281.59 (3) (a) 6m. An amount equal to the estimated present value of subsidies
22for all loans under the safe drinking water loan program to be made during the
23biennium for which the biennial finance plan is prepared, discounted at a rate of 7%
24per year to the first day of that biennium.
AB188, s. 92 25Section 92. 281.59 (3) (a) 7. of the statutes is amended to read:
AB188,24,2
1281.59 (3) (a) 7. A discussion of the assumptions made in calculating the
2amount amounts under subd. subds. 6. and 6m.
AB188, s. 93 3Section 93. 281.59 (3) (a) 8. of the statutes is amended to read:
AB188,24,54 281.59 (3) (a) 8. The amount of any service fee expected to be charged under
5s. 281.58 (9) (d)
during the next biennium under this section to an applicant.
AB188, s. 94 6Section 94. 281.59 (3) (b) of the statutes is amended to read:
AB188,24,117 281.59 (3) (b) The department of administration and the department shall
8consider as a guideline in preparing the portion of the biennial finance plan for the
9clean water fund program
that all state water pollution abatement general
10obligation debt service costs should not exceed 50% of all general obligation debt
11service costs to the state.
AB188, s. 95 12Section 95. 281.59 (3) (c), (d), (dm), (e), (f) and (i) of the statutes are
13renumbered 281.59 (3e) (a), (b), (c), (d), (e) and (f), and 281.59 (3e) (a), (b) (intro.), (c),
14(d), (e) and (f), as renumbered, are amended to read:
AB188,24,1715 281.59 (3e) (a) No moneys from the clean water fund may be expended for the
16clean water fund program
in a biennium until the legislature reviews and approves
17all of the following as part of the biennial budget act for the biennium:
AB188,24,2018 1. An amount of present value of the subsidy for the clean water fund program
19that is specified for that biennium under par. (d) (b) and is based on the amount
20included in the biennial finance plan under par. sub. (3) (a) 6.
AB188,24,2321 2. The amount of public debt, authorized under s. 20.866 (2) (tc), that the state
22may contract for the purposes of s. 281.58 and this section the clean water fund
23program
.
AB188,24,2524 3. The amount of revenue obligations, authorized under sub. (4) (f), that may
25be issued for the purposes specified in s. 25.43 (3) of the clean water fund program.
AB188,25,3
1(b) (intro.) The amount of present value of the subsidy for the clean water fund
2program
that is required to be specified under par. (c) (a) 1. and approved by the
3legislature under this paragraph is as follows:
AB188,25,114 (c) The department of administration may allocate amounts approved under
5par. (d) (b) as the present value of subsidies for financial assistance under this section
6and s. 281.58
the clean water fund program, including financial hardship assistance
7and assistance for the additional costs of approved projects. The department of
8administration may allocate amounts from the amount approved under par. (d) (b)
9for a biennium until December 30 of the fiscal year immediately following the
10biennium for projects for which complete applications under s. 281.58 (9) (a) are
11submitted before the end of the biennium.
AB188,25,1612 (d) The department may expend, for financial assistance in a biennium other
13than financial hardship assistance under s. 281.58 (13) (e), an amount up to 85% of
14the amount approved by the legislature under par. (d) (b). The department may
15expend such amount only from the percentage of the amount approved under par. (d)
16(b) that is not available under par. (f) (e) for financial hardship assistance.
AB188,25,2117 (e) The department may expend, for financial hardship assistance in a
18biennium under s. 281.58 (13) (e), an amount up to 15% of the amount approved by
19the legislature under par. (d) (b) for that biennium. The department may expend
20such amount only from the percentage of the amount approved by the legislature
21under par. (d) (b) that is not available under par. (e) (d) for financial assistance.
AB188,26,222 (f) Using the amount approved under par. (d) (b) as a base, the department of
23administration shall calculate the present value of the actual subsidy of each clean
24water fund program loan or grant to be made for those projects in each biennium that

1are approved for financial assistance by the 2 departments. The present value shall
2be discounted as provided under par. sub. (3) (a) 6.
AB188, s. 96 3Section 96. 281.59 (3) (j) of the statutes is amended to read:
AB188,26,94 281.59 (3) (j) No later than November 1 of each odd-numbered year, the
5department of administration and the department jointly shall submit a report, to
6the building commission and committees as required under par. (bm), on the
7implementation of the amount established under par. (d) sub. (3e) (b) as required
8under s. 281.58 (9m) (e), and on the operations and activities of the clean water fund
9program and the safe drinking water loan program for the previous biennium.
AB188, s. 97 10Section 97. 281.59 (3e) (title) of the statutes is created to read:
AB188,26,1111 281.59 (3e) (title) Clean water fund program expenditures.
AB188, s. 98 12Section 98. 281.59 (3s) of the statutes is created to read:
AB188,26,1613 281.59 (3s) Safe drinking water loan program expenditures. (a) No moneys
14may be expended for the safe drinking water loan program in a biennium until the
15legislature reviews and approves all of the following as part of the biennial budget
16act for the biennium:
AB188,26,1917 1. An amount of present value of the subsidy for the safe drinking water loan
18program that is specified for that biennium under par. (b) and is based on the amount
19included in the biennial finance plan under sub. (3) (a) 6m.
AB188,26,2120 2. The amount of public debt, authorized under s. 20.866 (2) (td), that the state
21may contract for the purposes of the safe drinking water loan program.
AB188,26,2322 (b) The amount of present value of the subsidy for the safe drinking water loan
23program that is approved by the legislature under this paragraph is as follows:
AB188,26,2424 1. Equal to $18,000,000 during the 1997-99 biennium.
AB188,26,2525 2. Equal to $1,000 for any biennium after the 1997-99 biennium.
AB188,27,3
1(c) The department of administration may allocate amounts approved under
2par. (b) as the present value of subsidies for financial assistance under the safe
3drinking water program.
AB188,27,84 (d) Using the amount approved under par. (b) as a base, the department of
5administration shall calculate the present value of the actual subsidy of each safe
6drinking water loan made for those projects in each biennium that are approved for
7financial assistance. The present value shall be discounted as provided under sub.
8(3) (a) 6m.
AB188, s. 99 9Section 99. 281.59 (4) (am) of the statutes is amended to read:
AB188,27,1410 281.59 (4) (am) Deposits, appropriations or transfers to the clean water
11environmental improvement fund for the purposes specified in s. 25.43 (3) of the
12clean water fund program
may be funded with the proceeds of revenue obligations
13issued subject to and in accordance with subch. II of ch. 18 or in accordance with
14subch. IV of ch. 18 if designated a higher education bond.
AB188, s. 100 15Section 100. 281.59 (4) (c) of the statutes is amended to read:
AB188,27,2516 281.59 (4) (c) The building commission may pledge any portion of revenues
17received or to be received in the fund established in par. (b) or the clean water
18environmental improvement fund to secure revenue obligations issued under this
19subsection. The pledge shall provide for the transfer to the clean water
20environmental improvement fund of all pledged revenues, including any interest
21earned on the revenues, which are in excess of the amounts required to be paid under
22s. 20.320 (1) (c) and (u) for the purposes specified in s. 25.43 (3) of the clean water fund
23program
. The pledge shall provide that the transfers be made at least twice yearly,
24that the transferred amounts be deposited in the clean water environmental
25improvement
fund and that the transferred amounts are free of any prior pledge.
AB188, s. 101
1Section 101. 281.59 (9) (a), (am) and (b) (intro.) and 1. of the statutes are
2amended to read:
AB188,28,93 281.59 (9) (a) A loan approved under this section and s. 281.58 the clean water
4fund program or the safe drinking water loan program
shall be for no longer than 20
5years, as determined by the department of administration, be fully amortized not
6later than 20 years after the original date of the note, and require the repayment of
7principal and interest, if any, to begin not later than 12 months after the expected
8date of completion of the project that it funds, as determined by the department of
9administration.
AB188,28,1910 (am) The department of administration, in consultation with the department,
11may establish those terms and conditions of a financial assistance agreement that
12relate to its financial management, including what type of municipal obligation, as
13set forth under s. 66.36, is required for the repayment of the financial assistance.
14Any terms and conditions established under this paragraph by the department of
15administration shall comply with the requirements of this section and s. 281.58 or
16281.61
. In setting such the terms and conditions, the department of administration
17may consider factors that the department of administration finds are relevant,
18including the type of municipal obligation evidencing the loan, the pledge of security
19for the municipal obligation and the municipality's applicant's creditworthiness.
AB188,28,2220 (b) (intro.) As a condition of receiving financial assistance under this section
21and s. 281.58, a municipality
the clean water fund program or the safe drinking
22water loan program, an applicant
shall do all of the following:
AB188,28,2423 1. Pledge the security, if any, required by the rules promulgated by the
24department of administration under this section and s. 281.58 or 281.61.
AB188, s. 102 25Section 102. 281.59 (11) of the statutes is amended to read:
AB188,29,6
1281.59 (11) Financial assistance payments. (a) The department of natural
2resources and the department of administration may enter into a financial
3assistance agreement with a municipality an applicant for which the department of
4administration has allocated subsidy under s. 281.58 (9m) or 281.61 (8) if the
5municipality applicant meets the conditions under sub. (9) and s. 281.58 (14) and the
6other requirements under this section and s. 281.58 or 281.61.
AB188,29,107 (am) The department of administration shall make the financial assistance
8payments to a municipality which an applicant that has entered into a financial
9assistance agreement under par. (a) or to the municipality's applicant's designated
10agent.
AB188,29,1911 (b) If a municipality fails to make a principal repayment or interest payment
12after its due date, the department of administration shall place on file a certified
13statement of all amounts due under this section and s. 281.58 or 281.61. After
14consulting the department, the department of administration may collect all
15amounts due by deducting those amounts from any state payments due the
16municipality or may add a special charge to the amount of taxes apportioned to and
17levied upon the county under s. 70.60. If the department of administration collects
18amounts due, it shall remit those amounts to the fund to which they are due and
19notify the department of that action.
AB188,29,2420 (c) The department of administration may retain the last payment under a
21financial assistance agreement until the department of natural resources and the
22department of administration determine that the project is completed and meets the
23applicable requirements of this section and s. 281.58 or 281.61 and that the
24conditions of the financial assistance agreement are met.
AB188, s. 103 25Section 103. 281.59 (13m) of the statutes is amended to read:
AB188,30,16
1281.59 (13m) Legislative moral obligation. The building commission may, at
2the time the loan is made, by resolution designate a loan made under this section and
3s. 281.58
the clean water fund program as one to which this subsection applies. If
4at any time the payments received or expected to be received from a municipality on
5any loan so designated are pledged to secure revenue obligations of the state issued
6pursuant to subch. II of ch. 18 and are insufficient to pay when due principal of and
7interest on such loan, the department of administration shall certify the amount of
8such insufficiency to the secretary of administration, the governor and the joint
9committee on finance. If the certification is received by the secretary of
10administration in an even-numbered year before the completion of the budget under
11s. 16.43, the secretary of administration shall include the certified amount in the
12budget compilation. In any event, the joint committee on finance shall introduce in
13either house, in bill form, an appropriation of the amount so requested for the
14purpose of payment of the revenue obligation secured thereby. Recognizing its moral
15obligation to do so, the legislature hereby expresses its expectation and aspiration
16that, if ever called upon to do so, it shall make the appropriation.
AB188, s. 104 17Section 104. 281.59 (13s) of the statutes is amended to read:
AB188,30,2018 281.59 (13s) Powers. The department of administration may audit, or contract
19for audits of, projects receiving financial assistance under this section and s. 281.58
20the clean water fund program and the safe drinking water loan program.
AB188, s. 105 21Section 105. 281.59 (14) of the statutes is amended to read:
AB188,30,2422 281.59 (14) Rules. The department of administration shall promulgate rules
23that are necessary for the proper execution of this section and of its responsibilities
24under s. ss. 281.58 and 281.61.
AB188, s. 106 25Section 106. 281.61 of the statutes is created to read:
AB188,31,1
1281.61 Safe drinking water loan program. (1) Definitions. In this section:
AB188,31,42 (a) "Local governmental unit" means a city, village, town, county, town sanitary
3district, public inland lake protection and rehabilitation district or municipal water
4district.
AB188,31,75 (b) "Market interest rate" means the interest at the effective rate of a revenue
6obligation issued by this state to fund a loan or portion of a loan for a clean water fund
7program project under s. 281.58.
AB188,31,118 (c) "Public water system" means a water system providing piped water to the
9public for human consumption if the water system has at least 15 service connections
10or regularly serves an average of at least 25 individuals daily for at least 60 days each
11year.
AB188,31,1312 (d) "Safe drinking water loan program" means the program administered
13under this section, with financial management provided under s. 281.59.
AB188,31,19 14(2) General. The department and the department of administration shall
15administer a program to provide financial assistance to local governmental units for
16projects for the planning, designing, construction or modification of public water
17systems, if the projects will facilitate compliance with national primary drinking
18water regulations under 42 USC 300g-1 or otherwise significantly further the health
19protection objectives of the Safe Drinking Water Act, 42 USC 300f to 300j-26.
AB188,32,2 20(2g) Ineligible projects. A local governmental unit is not eligible for financial
21assistance under this section if the local governmental unit does not have the
22technical, managerial or financial capacity to ensure compliance with the Safe
23Drinking Water Act, 42 USC 300f to 300j-26, or the public water system operated by
24the local governmental unit is in significant noncompliance with any requirement

1of a primary drinking water regulation or variance under 42 USC 300g-1 unless the
2financial assistance will ensure compliance with the Safe Drinking Water Act.
AB188,32,5 3(2r) Methods of providing financial assistance. The following methods of
4providing financial assistance may be used under the safe drinking water loan
5program:
AB188,32,76 (a) Making loans below the market interest rate for projects described in sub.
7(2).
AB188,32,108 (b) Purchasing or refinancing the obligation of a local governmental unit if the
9obligation was incurred to finance the cost of a project described in sub. (2) and the
10obligation was initially incurred after July 1, 1993.
AB188,32,1311 (c) Guaranteeing, or purchasing insurance for, obligations incurred to finance
12the cost of projects described in sub. (2) if the guarantee or insurance will provide
13credit market access or reduce interest rates.
AB188,32,1714 (d) Providing payments to the board of commissioners of public lands to reduce
15principal or interest payments, or both, on loans made to local governmental units
16under subch. II of ch. 24 by the board of commissioners of public lands for projects
17that are eligible for financial assistance under the safe drinking water loan program.
AB188,32,22 18(3) Notice of intent to apply. (a) A local governmental unit shall submit notice
19of its intent to apply for financial assistance under the safe drinking water loan
20program at least 6 months before the beginning of the fiscal biennium in which it
21intends to receive the financial assistance. The notice shall be in a form prescribed
22by the department and the department of administration.
AB188,32,2523 (b) If a local governmental unit does not apply for financial assistance by April
2430 of the 2nd year following the year in which it submitted notice under par. (a), the
25local governmental unit shall submit a new notice under par. (a).
AB188,33,2
1(c) The department may waive par. (a) or (b) upon the written request of a local
2governmental unit.
AB188,33,5 3(4) Engineering report. A local governmental unit seeking financial
4assistance for a project under this section shall submit an engineering report, as
5required by the department by rule.
AB188,33,14 6(5) Application. After the department approves a local governmental unit's
7engineering report submitted under sub. (4), the local governmental unit shall
8submit an application for safe drinking water financial assistance to the department.
9The applicant shall submit the application before the April 30 preceding the
10beginning of the fiscal year in which the applicant wishes to receive the financial
11assistance. The application shall be in the form and include the information required
12by the department and the department of administration and shall include plans and
13specifications that are approvable by the department under this section. An
14applicant may not submit more than one application per project per year.
AB188,33,21 15(6) Priority list. The department shall establish a priority list that ranks each
16safe drinking water loan program project. The department shall promulgate rules
17for determining project rankings that, to the extent possible, give priority to projects
18that address the most serious risks to human health, that are necessary to ensure
19compliance with the Safe Drinking Water Act, 42 USC 300f to 300j-26, and that
20assist local governmental units that are most in need on a per household basis,
21according to affordability criteria specified in the rules.
AB188,33,23 22(7) Approval of application. The department shall approve an application
23received under sub. (5) after all of the following occur:
AB188,33,2424 (a) The project is ranked on the priority list under sub. (6).
AB188,34,2
1(b) The department determines that the project meets the eligibility
2requirements under this section.
AB188,34,43 (c) The department of administration determines that the local governmental
4unit will meet the requirements of s. 281.59 (9) (b).
AB188,34,65 (d) The legislature has approved an amount under s. 281.59 (3s) (b) 1. for the
6biennium.
AB188,34,13 7(8) Funding list; allocation of funding. (a) The department shall establish
8a funding list for each fiscal year that ranks projects of local governmental units that
9submit approvable applications under sub. (5) in the same order that they appear on
10the priority list under sub. (6). If sufficient funds are not available to fund all
11approved applications for financial assistance, the department of administration
12shall allocate funding to projects that are approved under sub. (7) in the order that
13they appear on the funding list, except as follows:
AB188,34,1714 1. The department of administration shall allocate to projects for public water
15systems that regularly serve fewer than 10,000 persons 15% of the available funds
16in each fiscal year or such lesser amount that fully funds the eligible projects for
17those public water systems.
AB188,34,1918 2. In any biennium, no local governmental unit may receive more than 25% of
19the amount established under s. 281.59 (3s) (b) for that biennium.
AB188,34,2220 (b) In allocating subsidy under this subsection, the department of
21administration shall adhere to the amount approved by the legislature for each
22biennium under s. 281.59 (3s) (b).
AB188,34,25 23(8m) Conditions of financial assistance. As a condition of receiving financial
24assistance under the safe drinking water loan program, a local governmental unit
25shall do all of the following:
AB188,35,2
1(a) Establish a dedicated source of revenue for the repayment of the financial
2assistance.
AB188,35,53(b) Comply with those provisions of 42 USC 300f to 300j-26 and this chapter
4and the regulations and rules promulgated under those provisions that the
5department specifies.
AB188,35,76 (c) Develop and adopt a program of water conservation as required by the
7department.
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