AB744: Bill Text

LRB-4551/1

KSH:kmg:jf

1997 - 1998 LEGISLATURE

1997 Assembly BILL 744

January 27, 1998 - Introduced by Representative Gard, cosponsored by Senator Burke. Referred to Committee on Rules.

AB744,1,3 An Act to amend 20.866 (2) (xc), 20.866 (2) (xd) and 20.866 (2) (yr) of the statutes; relating to: granting bonding authority for refunding general obligation debt and for the discount sale of debt.

Analysis by the Legislative Reference Bureau

Current law limits the authority of the building commission to refund certain types of state general obligation debt. This bill increases the building commission's bonding authority for refunding general obligation bonds that are paid from general purpose revenue from $1,740,000,000 to $2,125,000,000. The bill also increases the building commission's bonding authority for refunding general obligation bonds that are to be repaid from program revenues or segregated funds from $180,000,000 to $275,000,000. Lastly, current law allows the building commission to bond to pay the difference between the amount of public debt contracted and any lesser amount, not including accrued interest, received upon the sale of the public debt. This bill raises this bonding authority for the discounted sale of public debt from $65,000,000 to $90,000,000.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB744, s. 1 Section 1. 20.866 (2) (xc) of the statutes is amended to read:

AB744,2,12 20.866 (2) (xc) Building commission; refunding tax-supported general obligation debt. From the capital improvement fund, a sum sufficient to refund the whole or any part of any unpaid indebtedness used to finance facilities in which general obligation bonds are paid from general purpose revenue. The state may contract public debt in an amount not to exceed $1,740,000,000 $2,125,000,000 for this purpose. Such indebtedness shall be construed to include any premium and interest payable with respect thereto. Debt incurred by this paragraph shall be repaid under the appropriations providing for the retirement of public debt incurred for tax-supported facilities in proportional amounts to the purposes for which the debt was refinanced. It is the intent of the legislature that this refunding authority only be used if the true interest costs to the state can be reduced.

AB744, s. 2 Section 2. 20.866 (2) (xd) of the statutes is amended to read:

AB744,2,24 20.866 (2) (xd) Building commission; refunding self-amortizing general obligation debt. From the capital improvement fund, a sum sufficient to refund the whole or any part of any unpaid indebtedness used to finance facilities in which general obligation bonds are repaid from program revenues or segregated funds. The state may contract public debt in an amount not to exceed $180,000,000 $275,000,000 for this purpose. Such indebtedness shall be construed to include any premium and interest payable with respect thereto. Debt incurred by this paragraph shall be repaid under the appropriations providing for the retirement of public debt incurred for self-amortizing facilities in proportional amounts to the purposes for which the debt was refinanced. It is the intent of the legislature that this refunding authority only be used if the true interest costs to the state can be reduced.

AB744, s. 3 Section 3. 20.866 (2) (yr) of the statutes is amended to read:

AB744,3,5 20.866 (2) (yr) Building commission; discount sale of debt. From the capital improvement fund, a sum sufficient to pay the difference between the amount of public debt contracted and any lesser amount, not including accrued interest, received upon the sale of the public debt. The state may contract public debt in an amount not to exceed $65,000,000 $90,000,000 for this purpose.

AB744,3,6 (End)