SB501, s. 2 4Section 2. 32.05 (1) (a) of the statutes is amended to read:
SB501,5,225 32.05 (1) (a) Except as provided under par. (b), the county board of supervisors
6(or the county highway committee when so authorized by the county board) of
7supervisors
, city council, village board, town board, sewerage commission governing
8metropolitan sewerage district created by ss. 66.22 or 66.88 to 66.918, secretary of
9transportation, a commission created by contract under s. 66.30, a joint local water
10authority created by contract under s. 66.0375,
housing authority under ss. 66.40 to
1166.404, local exposition district created under subch. II of ch. 229, redevelopment
12authority under s. 66.431 or community development authority under s. 66.4325
13shall make an order providing for the laying out, relocation and improvement of the
14public highway, street, alley, storm and sanitary sewers, watercourses, water
15transmission and distribution facilities,
mass transit facilities, airport, or other
16transportation facilities, gas or leachate extraction systems to remedy
17environmental pollution from a solid waste disposal facility, housing project,
18redevelopment project, exposition center or exposition center facilities which shall
19be known as the relocation order. This order shall include a map or plat showing the
20old and new locations and the lands and interests required. A copy of the order shall,
21within 20 days after its issue, be filed with the county clerk of the county wherein the
22lands are located.
SB501, s. 3 23Section 3. 32.07 (2) of the statutes is amended to read:
SB501,6,824 32.07 (2) The petitioner shall determine necessity if application is by the state
25or any commission, department, board or other branch of state government or by a

1city, village, town, county, school district, board, commission, public officer,
2commission created by contract under s. 66.30, joint local water authority under s.
366.0735,
redevelopment authority created under s. 66.431, local exposition district
4created under subch. II of ch. 229, housing authority created under ss. 66.40 to
566.404 or for the right-of-way of a railroad up to 100 feet in width, for a telegraph,
6telephone or other electric line, for the right-of-way for a gas pipeline, main or
7service or for easements for the construction of any elevated structure or subway for
8railroad purposes.
SB501, s. 4 9Section 4. 66.0735 of the statutes is created to read:
SB501,6,20 1066.0735 Joint local water authorities. (1) Finding and declaration of
11necessity.
It is declared that the operation of water utility systems by local
12governmental units of this state and the improvement of the systems through joint
13action in the production, treatment, storage, transmission, distribution, purchase,
14sale and exchange of water is in the public interest and a matter of statewide concern;
15that there is a need in order to ensure the stability and continued viability of the local
16systems to provide for a means by which local governmental units which operate the
17systems may act jointly, including development of coordinated water production,
18treatment, storage, transmission and distribution; and that, the necessity in the
19public interest for the provisions of this section is declared as a matter of legislative
20determination.
SB501,6,22 21(2) Definitions. As used in this section, unless the context clearly indicates
22otherwise:
SB501,6,2323 (a) "Authority" means a joint local water authority.
SB501,6,2524 (b) "Bonds" means any bonds, interim certificates, notes, debentures or other
25obligations of an authority issued under this section.
SB501,7,1
1(c) "Commission" means the public service commission.
SB501,7,42 (d) "Contracting party" means a local governmental unit in this state, or a
3federally recognized Indian tribe or band located in this state, that contracts to
4establish or to join an authority under this section.
SB501,7,75 (e) "Local governmental unit" means any city, village, town, county, town
6sanitary district, water utility district, or a public inland lake protection and
7rehabilitation district that has town sanitary district powers under s. 33.22 (3).
SB501,7,98 (f) "Local water authority" means a public corporation created by contract
9between 2 or more contracting parties.
SB501,7,1610 (g) "Project" means any plant, works, system, facilities and real and personal
11property of any nature, together with all parts and appurtenances, that are used or
12useful in the production, treatment, storage, transmission, distribution, purchase,
13sale, or exchange of water. "Project" includes any interest in, or right to the capacity
14of, the plant, works, system, facilities or property. "Project" also includes the
15acquisition of water and the acquisition, construction or operation of facilities for
16producing, treating, storing, transmitting, or distributing water.
SB501,7,23 17(3) Creation of an authority. (a) Creation by contract. Any local governmental
18unit in this state may contract with one or more local governmental units in this state
19or federally recognized Indian tribes or bands located in the state to establish a
20separate governmental entity, to be known as a joint local water authority, to jointly
21produce, treat, store, transmit, distribute, purchase, sell or exchange water, in whole
22or in part for the benefit of the contracting parties. The parties to the contract may
23amend the contract as provided in the contract.
SB501,8,224 (am) Hearing requirements. At least 30 days before becoming a contracting
25party by entering into a contract under this subsection, a local governmental unit

1shall hold a public hearing on the proposed contract. Notice of the hearing shall be
2published as a class 3 notice under ch. 985.
SB501,8,73 (b) Filing requirements. The parties entering into a contract under this
4subsection shall file a copy of the contract with the secretary of state. Upon receipt,
5the secretary of state shall record the contract and issue a certificate of incorporation
6stating the name of the authority and the date and fact of incorporation. The
7corporate existence of the authority begins upon issuance of the certificate.
SB501,8,9 8(4) Contract. A contract establishing an authority under sub. (3) shall specify
9all of the following:
SB501,8,1210 (a) The name and purpose of the authority and the functions or services to be
11provided by the authority. The name shall refer to the authority as an agency,
12authority or district.
SB501,8,1613 (b) The establishment and organization of a board of directors, in which all
14powers of the authority shall be vested. The contract may permit the board of
15directors to create an executive committee of the board of directors to which the board
16of directors may delegate any of its powers and duties, as specified by the board.
SB501,8,2117 (c) The number of directors, the manner of their appointment, the terms of their
18office, their compensation, if any, and the procedure for filling vacancies on the board
19of directors. The contracting parties shall appoint the members of the board of
20directors. Each contracting party shall be entitled to appoint an equal number of
21directors to the board of directors and may remove those directors at will.
SB501,8,2522 (d) The weight given to each director's vote. Unless specifically provided
23otherwise, each director's vote shall be given equal weight. If the contract provides
24for differing weights to be given to each director's vote, the contract shall specify the
25manner of calculating the weight to be given to each director's vote.
SB501,9,1
1(e) The manner of selection of the officers of the authority and their duties.
SB501,9,62 (f) The voting requirements for action by the board of directors. Unless
3specifically provided otherwise, a majority of the authorized directors constitutes a
4quorum of the board of directors. Unless specifically provided otherwise, a majority
5of the voting power present is necessary for any action to be taken by the board of
6directors.
SB501,9,97 (g) The duties of the board of directors, including the obligation to comply with
8this section and the laws of this state and with the terms of the contract under this
9subsection.
SB501,9,1110 (h) The manner in which additional local governmental units and Indian tribes
11or bands located in the state may become parties to the contract by amendment.
SB501,9,1312 (i) Provisions for the disposition, division or distribution of any property or
13assets of the authority on dissolution.
SB501,9,1914 (j) The term of the contract and the method, if any, of terminating or rescinding
15the contract. The term of the contract may be a definite period or it may be until
16rescinded or terminated. The contract may not be rescinded or terminated so long
17as the authority has bonds outstanding, unless provision for full payment of such
18bonds, by escrow or otherwise, has been made pursuant to the terms of the bonds or
19the resolution, trust indenture or security instrument securing the bonds.
SB501,9,2020 (k) The manner in which the contracting parties shall resolve any disputes.
SB501,9,21 21(5) Powers. The authority may do all of the following:
SB501,9,2422 (a) Plan, develop, acquire, construct, reconstruct, operate, manage, dispose of,
23participate in, maintain, repair, extend or improve one or more projects within the
24state, either solely or in conjunction with any other person.
SB501,9,2525 (b) Act as agent in conducting an activity under par. (a).
SB501,10,1
1(c) Buy or sell interest in, or rights to the capacity of, projects.
SB501,10,92 (d) Produce, treat, store, transmit, distribute, purchase, sell or exchange water
3in such amounts as the board of directors determines to be necessary and
4appropriate, subject to the limitations in this paragraph. An authority may not sell
5water at retail. An authority may not sell any water to a person other than a
6contracting party, except pursuant to an emergency services contract. An authority
7may enter into an emergency services contract to sell water at wholesale to a person
8other than a contracting party in emergency situations, to be specified in the
9contract.
SB501,10,1210 (e) Acquire, own, hold, use, lease as lessor or lessee, sell or otherwise dispose
11of, mortgage, pledge, or grant a security interest in any real or personal property,
12commodity or service.
SB501,10,1413 (f) Acquire property by condemnation using the procedure under s. 32.05 or
1432.06 for the purposes set forth in this section.
SB501,10,2215 (g) Enter upon any state, county or municipal street, road or alley, or any public
16highway for the purpose of installing, maintaining and operating the authority's
17facilities. The authority may construct in the street, road or alley or public highway
18necessary facilities without a permit or a payment of a charge. Whenever the work
19is to be done in a state, county or municipal highway, the public authority having
20control thereof shall be duly notified, and the highway shall be restored to as good
21a condition as existed before the commencement of the work with all costs incident
22to the work to be borne by the authority.
SB501,11,323 (h) Install and maintain, without compensation to the state, any part of the
24authority's facilities over, upon or under any part of the bed of any river or of any land
25covered by any of the navigable waters of the state, the title to which is held by the

1state, and over, upon or under canals or through waterways. This paragraph does
2not relieve the authority of its obligation to obtain any permits or approvals
3otherwise required by law.
SB501,11,64 (i) Require contracting parties to purchase water from the authority and to
5connect any contracting party's distribution system with the authority's distribution
6system.
SB501,11,87 (j) Fix, maintain and revise fees, rates, rents and charges for functions,
8services, facilities or commodities provided by the authority.
SB501,11,109 (k) Make, and from time to time amend and repeal, bylaws, rules and
10regulations to carry into effect the powers and purposes of the authority.
SB501,11,1211 (L) Join an organization, if the board of directors determines that membership
12is beneficial to accomplishment of the authority's purposes.
SB501,11,1313 (m) Sue and be sued in its own name.
SB501,11,1414 (n) Have and use a corporate seal.
SB501,11,1515 (o) Employ agents and employes.
SB501,11,1716 (p) Incur debts, liabilities or obligations including the borrowing of money and
17the issuance of bonds, secured or unsecured, under sub. (9) (b).
SB501,11,2118 (q) Invest any funds held in reserve or sinking funds, or any funds not required
19for immediate disbursement, including the proceeds from the sale of any bonds, in
20such obligations, securities and other investments as the authority deems proper in
21accordance with s. 66.04 (2).
SB501,11,2322 (r) Do and perform any acts and things authorized by this section under,
23through or by means of an agent or by contracts with any person.
SB501,11,2524 (s) Exercise any other powers that the board of directors considers necessary
25and convenient to effectuate the purposes of the authority.
SB501,12,4
1(6) Public character. An authority is a political subdivision and body public
2and corporate of the state, exercising public powers, separate from the contracting
3parties. It has the duties, privileges, immunities, rights, liabilities and disabilities
4of a public body but does not have taxing power.
SB501,12,6 5(7) Payments. (a) Definition. In this subsection, "purchase of water" includes
6any right to capacity or interest in any project.
SB501,12,127 (b) Payments for commodities and services. The contracting parties may agree
8to pay the authority funds for commodities to be procured or services to be rendered
9by the authority. The agreement may also provide for payments in the form of
10contributions to defray the cost of any purpose set forth in the contract under sub.
11(4) or the agreement and, subject to repayment by the authority, for advances for any
12purpose set forth in the contract under sub. (4) or the agreement.
SB501,12,1513 (c) Purchase agreements. The contracting parties may enter into purchase
14agreements with the authority for the purchase of water. Purchase agreements may
15include the following provisions:
SB501,12,2116 1. A provision requiring the purchaser to make payments in amounts that are
17sufficient to enable the authority to meet its expenses, interest and principal
18payments, whether at maturity or upon debt service fund redemption, for its bonds,
19reasonable reserves for debt service, operation and maintenance and renewals and
20replacements and the requirements of any rate covenant with respect to debt service
21coverage contained in any resolution, trust indenture or other security instrument.
SB501,12,2522 2. A provision requiring the purchaser to pay for water regardless of whether
23water is delivered to the purchaser or whether any project contemplated by any such
24agreement is completed, operable or operating, and notwithstanding suspension,
25interruption, interference, reduction or curtailment of the output of the project.
SB501,13,4
13. A provision requiring that, if one or more of the purchasers defaults in the
2payment of its obligations under a purchase agreement, the remaining purchasers
3shall accept and pay for, and shall be entitled proportionately to use or otherwise
4dispose of, the water that was to have been purchased by the defaulting purchaser.
SB501,13,65 4. A provision providing for a term for the purchase agreement. The term may
6be for the life of a project, for an indefinite period or for any other term.
SB501,13,87 5. Other terms and conditions that the authority and the purchasers
8determine.
SB501,13,149 (d) Status of obligations under a purchase agreement. To the extent that a
10purchase agreement with an authority provides that the obligations of a contracting
11party under the puchase agreement are special obligations of the contracting party,
12payable solely from the revenues and other moneys derived by the contracting party
13from its water utility, these obligations are not debt of the contracting party and shall
14be treated as operation and maintenance expenses of a water utility.
SB501,13,20 15(8) Regulation. (a) An authority may not issue bonds for the construction of
16a project until the commission has certified that public convenience and necessity
17require the project. A project need not be certified as being required by public
18convenience and necessity if no bonds are issued for the project. The commission may
19promulgate rules regarding the making of certifications of public convenience and
20necessity under this subsection.
SB501,13,2221 (b) The commission may refuse to certify a project under par. (a) if it appears
22that the completion of the project will do any of the following:
SB501,13,2423 1. Substantially impair the efficiency of the service of a contracting party's
24public utility.
SB501,14,2
12. Provide facilities unreasonably in excess of the probable future
2requirements.
SB501,14,43 3. When placed in operation, add to the cost of service without proportionately
4increasing the value or available quantity of service.
SB501,14,95 (c) The commission may issue a certificate for the construction of a project or
6for any part of the project if the project complies with the requirements of par. (b).
7The commission may attach to the issuance of its certificate terms and conditions
8that will ensure that the construction of the project meets the requirements of par.
9(b).
SB501,14,17 10(9) Bonds; generally. (a) Types of bonds. An authority may issue the types
11of bonds it determines, subject only to any agreement with the holders of particular
12bonds. An authority may issue bonds, the principal and interest on which are
13payable exclusively from all or a portion of the revenues from one or more projects,
14or from one or more revenue producing contracts made by the authority or from its
15revenues generally. The authority may secure its bonds by a pledge of any grant,
16subsidy, or contribution from any contracting party, or by a pledge of any income or
17revenues, funds, or moneys of the authority from any source whatsoever.
SB501,14,2418 (b) Purposes of bonds. An authority may issue bonds in such principal amounts
19as the authority deems necessary to provide sufficient funds to carry out any of its
20corporate purposes and powers, including the establishment or increase of reserves,
21interest accrued during construction of a project and for a period not exceeding one
22year after the completion of construction of a project, and the payment of all other
23costs or expenses of the authority incident to and necessary or convenient to carry
24out its corporate purposes and powers.
SB501,15,3
1(c) Liability on the bonds. 1. Neither the members of the board of directors of
2an authority nor any person executing the bonds is personally liable on the bonds by
3reason of the issuance of the bonds.
SB501,15,84 2. The bonds of an authority is not a debt of the contracting parties. Neither
5the contracting parties nor the state are liable for the payment of the bonds. The
6bonds of any authority shall be payable only out of funds or properties of the
7authority. The bonds of the authority shall state the restrictions contained in this
8paragraph on the face of the bonds.
SB501,15,17 9(10) Issuance of bonds. (a) Bonds of an authority shall be authorized by
10resolution of the board of directors. The bonds may be issued under such a resolution
11or under a trust indenture or other security instrument. The bonds may be issued
12in one or more series and may be in the form of coupon bonds or registered bonds
13under s. 67.09. The bonds shall bear the dates, mature at the times, bear interest
14at the rates, be in the denominations, have the rank or priority, be executed in the
15manner, be payable in the medium of payment, at the places, and be subject to the
16terms of redemption, with or without premium, as the resolution, trust indenture or
17other security instrument provides.
SB501,15,1918 (b) The authority may sell the bonds at public or private sales at the price or
19prices determined by the authority.
SB501,15,2320 (c) If an officer whose signatures appear on any bonds or coupons ceases to be
21an officer of the authority before the delivery of such obligations, the officer's
22signature shall, nevertheless, be valid for all purposes as if the officer had remained
23in office until delivery of the bonds.
SB501,15,25 24(11) Covenants. An authority may do all of the following in connection with
25the issuance of bonds:
SB501,16,1
1(a) Covenant as to the use of any or all of its property, real or personal.
SB501,16,32 (b) Redeem the bonds, or covenant for the redemption of the bonds, and provide
3the terms and conditions of the redemption.
SB501,16,94 (c) Covenant as to charge fees, rates, rents and charges sufficient to meet
5operating and maintenance expenses, renewals and replacements to a project,
6principal and debt service on bonds, creation and maintenance of any reserves
7required by a bond resolution, trust indenture or other security instrument and to
8provide for any margins or coverages over and above debt service on the bonds that
9the board of directors considers desirable for the marketability of the bonds.
SB501,16,1410 (d) Covenant as to the events of default on the bonds and the terms and
11conditions upon which the bonds shall become or may be declared due before
12maturity, as to the terms and conditions upon which this declaration and its
13consequences may be waived, and as to the consequences of default and the remedies
14of bondholders.
SB501,16,1815 (e) Covenant as to the mortgage or pledge of, or the grant of a security interest
16in, any real or personal property and all or any part of the revenues from any project
17or any revenue producing contract made by the authority to secure the payment of
18bonds, subject to any agreements with the bondholders.
SB501,16,2119 (f) Covenant as to the custody, collection, securing, investment and payment
20of any revenues, assets, moneys, funds or property with respect to which the
21authority may have any rights or interest.
SB501,16,2422 (g) Covenant as to the purposes to which the proceeds from the sale of any bonds
23may be applied, and as to the pledge of such proceeds to secure the payment of the
24bonds.
SB501,17,3
1(h) Covenant as to limitations on the issuance of any additional bonds, the
2terms upon which additional bonds may be issued and secured, and the refunding
3of outstanding bonds.
SB501,17,54 (i) Covenant as to the rank or priority of any bonds with respect to any lien or
5security.
SB501,17,96 (j) Covenant as to the procedure by which the terms of any contract with or for
7the benefit of the holders of bonds may be amended or abrogated, the amount of
8bonds, the holders of which must consent thereto, and the manner in which such
9consent may be given.
SB501,17,1210 (k) Covenant as to the custody and safekeeping of any of its properties or
11investments, the insurance to be carried on the property or investments and the use
12and disposition of insurance proceeds.
SB501,17,1513 (L) Covenant as to the vesting in one or more trustees, within or outside the
14state, of those properties, rights, powers and duties in trust as the authority
15determines.
SB501,17,1816 (m) Covenant as to the appointing of, and providing for the duties and
17obligations of, one or more paying agent or other fiduciaries within or outside the
18state.
SB501,17,2119 (n) Make all other covenants and do any act that may be necessary or
20convenient or desirable in order to secure its bonds, or in the absolute discretion of
21the authority, tend to make the bonds more marketable.
SB501,17,2522 (o) Execute all instruments necessary or convenient in the exercise of the
23powers granted under this section or in the performance of covenants or duties,
24which may contain such covenants and provisions, as a purchaser of the bonds of the
25authority may reasonably require.
SB501,18,12
1(12) Refunding bonds. An authority may issue refunding bonds for the
2purpose of paying any of its bonds at or prior to maturity or upon acceleration or
3redemption. An authority may issue refunding bonds at such time prior to the
4maturity or redemption of the refunded bonds as the authority deems to be in the
5public interest. The refunding bonds may be issued in sufficient amounts to pay or
6provide the principal of the bonds being refunded, together with any redemption
7premium on the bonds, any interest accrued or to accrue to the date of payment of
8the bonds, the expenses of issue of the refunding bonds, the expenses of redeeming
9the bonds being refunded, and such reserves for debt service or other capital or
10current expenses from the proceeds of such refunding bonds as may be required by
11the resolution, trust indenture or other security instruments. To the extent
12applicable, refunding bonds are subject to subs. (10) and (11).
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