SB77,1425,1514 (b) The amount of present value of the subsidy for the safe drinking water loan
15program that is approved by the legislature under this paragraph is as follows:
SB77,1425,1616 1. Equal to $18,000,000 during the 1997-99 biennium.
SB77,1425,1717 2. Equal to $1,000 for any biennium after the 1997-99 biennium.
SB77,1425,2018 (c) The department of administration may allocate amounts approved under
19par. (b) as the present value of subsidies for financial assistance under the safe
20drinking water program.
SB77,1425,2521 (d) Using the amount approved under par. (b) as a base, the department of
22administration shall calculate the present value of the actual subsidy of each safe
23drinking water loan made for those projects in each biennium that are approved for
24financial assistance. The present value shall be discounted as provided under sub.
25(3) (a) 6m.
SB77, s. 3562
1Section 3562. 281.59 (4) (am) of the statutes is amended to read:
SB77,1426,62 281.59 (4) (am) Deposits, appropriations or transfers to the clean water
3environmental improvement fund for the purposes specified in s. 25.43 (3) of the
4clean water fund program
may be funded with the proceeds of revenue obligations
5issued subject to and in accordance with subch. II of ch. 18 or in accordance with
6subch. IV of ch. 18 if designated a higher education bond.
SB77, s. 3563 7Section 3563. 281.59 (4) (c) of the statutes is amended to read:
SB77,1426,178 281.59 (4) (c) The building commission may pledge any portion of revenues
9received or to be received in the fund established in par. (b) or the clean water
10environmental improvement fund to secure revenue obligations issued under this
11subsection. The pledge shall provide for the transfer to the clean water
12environmental improvement fund of all pledged revenues, including any interest
13earned on the revenues, which are in excess of the amounts required to be paid under
14s. 20.320 (1) (c) and (u) for the purposes specified in s. 25.43 (3) of the clean water fund
15program
. The pledge shall provide that the transfers be made at least twice yearly,
16that the transferred amounts be deposited in the clean water environmental
17improvement
fund and that the transferred amounts are free of any prior pledge.
SB77, s. 3564 18Section 3564. 281.59 (9) (a), (am) and (b) (intro.) and 1. of the statutes are
19amended to read:
SB77,1427,220 281.59 (9) (a) A loan approved under this section and s. 281.58 the clean water
21fund program, the safe drinking water loan program or the land recycling loan
22program
shall be for no longer than 20 years, as determined by the department of
23administration, be fully amortized not later than 20 years after the original date of
24the note, and require the repayment of principal and interest, if any, to begin not later

1than 12 months after the expected date of completion of the project that it funds, as
2determined by the department of administration.
SB77,1427,133 (am) The department of administration, in consultation with the department,
4may establish those terms and conditions of a financial assistance agreement that
5relate to its financial management, including what type of municipal obligation, as
6set forth under s. 66.36, is required for the repayment of the financial assistance.
7Any terms and conditions established under this paragraph by the department of
8administration shall comply with the requirements of this section and s. 281.58,
9281.60 or 281.61
. In setting such the terms and conditions, the department of
10administration may consider factors that the department of administration finds are
11relevant, including the type of municipal obligation evidencing the loan, the pledge
12of security for the municipal obligation and the municipality's applicant's
13creditworthiness.
SB77,1427,1714 (b) (intro.) As a condition of receiving financial assistance under this section
15and s. 281.58, a municipality
the clean water fund program, the safe drinking water
16loan program or the land recycling loan program, an applicant
shall do all of the
17following:
SB77,1427,1918 1. Pledge the security, if any, required by the rules promulgated by the
19department of administration under this section and s. 281.58, 281.60 or 281.61.
SB77, s. 3565 20Section 3565. 281.59 (11) of the statutes is amended to read:
SB77,1428,221 281.59 (11) Financial assistance payments. (a) The department of natural
22resources and the department of administration may enter into a financial
23assistance agreement with a municipality an applicant for which the department of
24administration has allocated subsidy under s. 281.58 (9m), 281.60 (8) or 281.61 (8)

1if the municipality applicant meets the conditions under sub. (9) and s. 281.58 (14)
2and the other requirements under this section and s. 281.58, 281.60 or 281.61.
SB77,1428,63 (am) The department of administration shall make the financial assistance
4payments to a municipality which an applicant that has entered into a financial
5assistance agreement under par. (a) or to the municipality's applicant's designated
6agent.
SB77,1428,157 (b) If a municipality fails to make a principal repayment or interest payment
8after its due date, the department of administration shall place on file a certified
9statement of all amounts due under this section and s. 281.58, 281.60 or 281.61.
10After consulting the department, the department of administration may collect all
11amounts due by deducting those amounts from any state payments due the
12municipality or may add a special charge to the amount of taxes apportioned to and
13levied upon the county under s. 70.60. If the department of administration collects
14amounts due, it shall remit those amounts to the fund to which they are due and
15notify the department of that action.
SB77,1428,2016 (c) The department of administration may retain the last payment under a
17financial assistance agreement until the department of natural resources and the
18department of administration determine that the project is completed and meets the
19applicable requirements of this section and s. 281.58, 281.60 or 281.61 and that the
20conditions of the financial assistance agreement are met.
SB77, s. 3566 21Section 3566. 281.59 (13m) of the statutes is amended to read:
SB77,1429,1222 281.59 (13m) Legislative moral obligation. The building commission may, at
23the time the loan is made, by resolution designate a loan made under this section and
24s. 281.58
the clean water fund program as one to which this subsection applies. If
25at any time the payments received or expected to be received from a municipality on

1any loan so designated are pledged to secure revenue obligations of the state issued
2pursuant to subch. II of ch. 18 and are insufficient to pay when due principal of and
3interest on such loan, the department of administration shall certify the amount of
4such insufficiency to the secretary of administration, the governor and the joint
5committee on finance. If the certification is received by the secretary of
6administration in an even-numbered year before the completion of the budget under
7s. 16.43, the secretary of administration shall include the certified amount in the
8budget compilation. In any event, the joint committee on finance shall introduce in
9either house, in bill form, an appropriation of the amount so requested for the
10purpose of payment of the revenue obligation secured thereby. Recognizing its moral
11obligation to do so, the legislature hereby expresses its expectation and aspiration
12that, if ever called upon to do so, it shall make the appropriation.
SB77, s. 3567 13Section 3567. 281.59 (13s) of the statutes is amended to read:
SB77,1429,1714 281.59 (13s) Powers. The department of administration may audit, or contract
15for audits of, projects receiving financial assistance under this section and s. 281.58
16the clean water fund program, the safe drinking water loan program and the land
17recycling loan program
.
SB77, s. 3568 18Section 3568. 281.59 (14) of the statutes is amended to read:
SB77,1429,2119 281.59 (14) Rules. The department of administration shall promulgate rules
20that are necessary for the proper execution of this section and of its responsibilities
21under s. ss. 281.58, 281.60 and 281.61.
SB77, s. 3569 22Section 3569. 281.60 of the statutes is created to read:
SB77,1429,23 23281.60 Land recycling loan program. (1) Definitions. In this section:
SB77,1429,2424 (a) "Landfill" has the meaning given in s. 289.01 (20).
SB77,1430,2
1(b) "Land recycling loan program" means the program administered under this
2section with financial management provided under s. 281.59.
SB77,1430,53 (c) "Market interest rate" means the interest at the effective rate of a revenue
4obligation issued by this state to fund a loan or portion of a loan for a clean water fund
5program project under s. 281.58.
SB77,1430,66 (d) "Political subdivision" means a city, village, town or county.
SB77,1430,77 (e) "Site or facility" has the meaning given in s. 292.35 (1) (f).
SB77,1430,18 8(2) General. The department and the department of administration may
9administer a program to provide financial assistance to political subdivisions for
10projects to remedy environmental contamination of sites or facilities at which
11environmental contamination has affected groundwater or surface water or
12threatens to affect groundwater or surface water. The department and the
13department of administration may provide financial assistance under this section to
14a political subdivision only if the political subdivision owns the contaminated site or
15facility. The department and the department of administration may not provide
16financial assistance under this section to remedy environmental contamination at
17a site or facility that is not a landfill if the political subdivision caused the
18environmental contamination.
SB77,1430,20 19(2r) Methods of providing financial assistance. The following methods of
20providing financial assistance may be used under the land recycling loan program:
SB77,1430,2221 (a) Making loans below the market interest rate for projects described in sub.
22(2).
SB77,1430,2523 (b) Purchasing or refinancing the obligation of a political subdivision if the
24obligation was incurred to finance the cost of a project described in sub. (2) and the
25obligation was initially incurred after May 17, 1988.
SB77,1431,3
1(c) Guaranteeing, or purchasing insurance for, obligations incurred to finance
2the cost of projects described in sub. (2) if the guarantee or insurance will provide
3credit market access or reduce interest rates.
SB77,1431,74 (d) Providing payments to the board of commissioners of public lands to reduce
5principal or interest payments, or both, on loans made to political subdivisions under
6subch. II of ch. 24 by the board of commissioners of public lands for projects that are
7eligible for financial assistance under the land recycling loan program.
SB77,1431,12 8(3) Notice of intent to apply. (a) A political subdivision shall submit notice
9of its intent to apply for financial assistance under the land recycling loan program.
10A political subdivision shall submit the notice at least 6 months before the beginning
11of the fiscal biennium in which it will request to receive funding. The notice shall
12be in a form prescribed by the department and the department of administration.
SB77,1431,1413 (b) The department may waive par. (a) upon the written request of a political
14subdivision.
SB77,1431,22 15(5) Application. After submitting a notice of intent to apply under sub. (3) (a)
16or obtaining a waiver under sub. (3) (b), a political subdivision shall submit an
17application for land recycling loan program financial assistance to the department.
18The applicant shall submit the application before the April 30 preceding the
19beginning of the fiscal year in which the applicant is requesting to receive the
20financial assistance. The application shall be in the form and include the
21information required by the department and the department of administration. An
22applicant may not submit more than one application per project per year.
SB77,1432,6 23(6) Priority list. The department shall establish a priority list that ranks each
24land recycling loan program project. The department shall promulgate rules for
25determining project rankings based on the potential of projects to reduce

1environmental pollution and threats to human health and, for sites and facilities
2that are not landfills, the extent to which projects will prevent the development of
3undeveloped land by making land available for redevelopment after a cleanup is
4conducted. Before the department establishes the priority list, the department shall
5consider the recommendations of the department of administration and the
6department of commerce.
SB77,1432,8 7(7) Approval of application. The department shall approve an application
8received under sub. (5) after all of the following occur:
SB77,1432,99 (a) The project is ranked on the priority list under sub. (6).
SB77,1432,1110 (b) The department determines that the project meets the eligibility
11requirements under this section.
SB77,1432,1312 (c) The department of administration determines that the political subdivision
13will meet the requirements of s. 281.59 (9) (b).
SB77,1432,1514 (d) The legislature has approved an amount under s. 281.59 (3m) (b) for the
15biennium.
SB77,1432,23 16(8) Funding list; allocation of funding. (a) The department shall establish
17a funding list for each fiscal year that ranks projects of political subdivisions that
18submit approvable applications under sub. (5) before the April 30 preceding the
19beginning of the fiscal year in the same order that they appear on the priority list
20under sub. (6). If sufficient funds are not available to fund all approved applications
21for financial assistance, the department of administration shall allocate funding to
22projects that are approved under sub. (7) in the order that they appear on the funding
23list, except as follows:
SB77,1432,2524 1. The department of administration may not allocate more than 40% of the
25available funds in each fiscal year to projects to remedy contamination at landfills.
SB77,1433,2
12. In any biennium, no political subdivision may receive more than 25% of the
2amount established under s. 281.59 (3m) (b) for that biennium.
SB77,1433,53 (b) In allocating subsidy under this subsection, the department of
4administration shall adhere to the amount approved by the legislature for each
5biennium under s. 281.58 (3m) (b).
SB77,1433,8 6(8m) Conditions of financial assistance. As a condition of receiving financial
7assistance under the land recycling loan program, a political subdivision shall do all
8of the following:
SB77,1433,109 (a) Establish a dedicated source of revenue for the repayment of the financial
10assistance.
SB77,1433,1311(b) Comply with those provisions of 33 USC 1381 to 1387, this chapter, and the
12rules and regulations promulgated under those provisions, that the department
13specifies.
SB77,1433,1514 (c) Allow access to the project by representatives of the department for the
15purpose of making inspections.
SB77,1433,23 16(9) Financial assistance commitments. The department and the department
17of administration may, at the request of a political subdivision, issue a notice of
18financial assistance commitment after the political subdivision's application for land
19recycling loan program financial assistance has been approved and funding has been
20allocated under sub. (8) for the political subdivision's project. The notice of financial
21assistance commitment shall specify the conditions that the political subdivision
22must meet to secure financial assistance and shall include the estimated repayment
23schedules and other terms of financial assistance.
SB77,1434,2 24(10) Deadline for closing. If funding is allocated to a project under sub. (8)
25for a loan and the loan is not closed before April 30 of the year following the year in

1which funding is allocated, the department of administration shall release the
2funding allocated to the project.
SB77,1434,4 3(11) Loan interest rates. The interest rate on a land recycling loan program
4loan shall be 55% of market interest rate.
SB77,1434,14 5(11m) Service fee. The department and the department of administration
6shall jointly charge and collect an annual service fee for reviewing and acting upon
7land recycling loan program applications and servicing financial assistance
8agreements. The fee shall be in addition to interest payments at the rate under sub.
9(11). For the 1997-99 fiscal biennium, the service fee shall be 0.5% of the loan
10balance. Fee amounts for later biennia shall be established in the biennial finance
11plan under s. 281.59 (3) (a) 8. The department and the department of administration
12shall specify in the biennial finance plan a fee designed to cover the costs of reviewing
13and acting upon land recycling loan program applications and servicing financial
14assistance agreements.
SB77,1434,18 15(12) Sale of site or facility. (a) A political subdivision may not sell a site or
16facility, or portion of a site or facility, for which the political subdivision has received
17a loan under this section, while the loan is outstanding, for less than fair market
18value.
SB77,1434,2119 (b) If a political subdivision sells a site or facility, or portion of a site or facility,
20for which the political subdivision has received a loan under this section, the political
21subdivision shall do the following:
SB77,1434,2422 1. If the sale proceeds are less than or equal to the remaining loan balance, pay
23the sale proceeds to the department of administration to repay all or a portion of the
24loan.
SB77,1435,4
12. If the sale proceeds are greater than the remaining loan balance but less than
2or equal to the cost of the land plus the cost of the cleanup, pay an amount equal to
3the remaining loan balance to the department of administration and retain the
4remainder of the sale proceeds.
SB77,1435,95 3. If the sale proceeds are greater than the cost of the land plus the cost of the
6cleanup, pay to the department of administration an amount equal to the remaining
7loan balance plus the lesser of 75% of the amount by which the sale proceeds exceed
8the cost of the land plus the cost of the cleanup or the amount of subsidy incurred for
9the project and retain the remainder of the sale proceeds.
SB77,1435,10 10(13) Duties of the department. The department shall do all of the following:
SB77,1435,1211 (a) Seek approval of the federal environmental protection agency for the use
12of funds under 33 USC 1381 to 1387 for the land recycling loan program.
SB77,1435,1413 (b) Promulgate rules establishing eligibility criteria for applicants and projects
14under this section.
SB77,1435,1615 (c) Promulgate rules that are necessary for the execution of its responsibilities
16under the land recycling loan program.
SB77,1435,1817 (d) Cooperate with the department of administration in administering the land
18recycling loan program.
SB77,1435,2019 (e) Submit a biennial budget request under s. 16.42 for the land recycling loan
20program.
SB77,1435,2221 (f) Have the lead role with the federal environmental protection agency
22concerning the land recycling loan program.
SB77,1435,2523 (g) Have the lead role with political subdivisions in providing land recycling
24loan program information, and cooperate with the department of administration in
25providing that information to political subdivisions.
SB77,1436,2
1(h) Periodically inspect land recycling loan program projects to determine
2project compliance with the requirements of this section.
SB77,1436,53 (i) By May 1 of each even-numbered year, prepare and submit to the
4department of administration a biennial needs list that includes all of the following
5information:
SB77,1436,86 1. A list of land recycling loan program projects that the department estimates
7will apply for financial assistance under the land recycling loan program during the
8next biennium.
SB77,1436,119 2. The estimated cost and estimated construction schedule of each project on
10the list under subd. 1., and the total of the estimated costs of all projects on the list
11under subd. 1.
SB77,1436,1212 3. The estimated rank of each project on the priority list under sub. (6).
SB77, s. 3570 13Section 3570. 281.61 of the statutes is created to read:
SB77,1436,14 14281.61 Safe drinking water loan program. (1) Definitions. In this section:
SB77,1436,1715 (a) "Local governmental unit" means a city, village, town, county, town sanitary
16district, public inland lake protection and rehabilitation district or municipal water
17district.
SB77,1436,2018 (b) "Market interest rate" means the interest at the effective rate of a revenue
19obligation issued by this state to fund a loan or portion of a loan for a clean water fund
20program project under s. 281.58.
SB77,1436,2421 (c) "Public water system" means a water system providing piped water to the
22public for human consumption if the water system has at least 15 service connections
23or regularly serves an average of at least 25 individuals daily for at least 60 days each
24year.
SB77,1437,2
1(d) "Safe drinking water loan program" means the program administered
2under this section, with financial management provided under s. 281.59.
SB77,1437,8 3(2) General. The department and the department of administration shall
4administer a program to provide financial assistance to local governmental units for
5projects for the planning, designing, construction or modification of public water
6systems, if the projects will facilitate compliance with national primary drinking
7water regulations under 42 USC 300g-1 or otherwise significantly further the health
8protection objectives of the Safe Drinking Water Act, 42 USC 300f to 300j-26.
SB77,1437,15 9(2g) Ineligible projects. A local governmental unit is not eligible for financial
10assistance under this section if the local governmental unit does not have the
11technical, managerial or financial capacity to ensure compliance with the Safe
12Drinking Water Act, 42 USC 300f to 300j-26, or the public water system operated by
13the local governmental unit is in significant noncompliance with any requirement
14of a primary drinking water regulation or variance under 42 USC 300g-1 unless the
15financial assistance will ensure compliance with the Safe Drinking Water Act.
SB77,1437,18 16(2r) Methods of providing financial assistance. The following methods of
17providing financial assistance may be used under the safe drinking water loan
18program:
SB77,1437,2019 (a) Making loans below the market interest rate for projects described in sub.
20(2).
SB77,1437,2321 (b) Purchasing or refinancing the obligation of a local governmental unit if the
22obligation was incurred to finance the cost of a project described in sub. (2) and the
23obligation was initially incurred after July 1, 1993.
SB77,1438,3
1(c) Guaranteeing, or purchasing insurance for, obligations incurred to finance
2the cost of projects described in sub. (2) if the guarantee or insurance will provide
3credit market access or reduce interest rates.
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