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1999 - 2000 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 1999 ASSEMBLY BILL 218
March 18, 1999 - Offered by
Joint committee on Audit.
AB218-ASA1,2,8
1An Act to repeal 101.143 (3) (g) 2.;
to renumber 18.52 (5) (c) and 18.56 (7) and
2(8);
to renumber and amend 18.52 (5) (intro.), 18.52 (5) (a), 18.52 (5) (b), 18.53
3(3), 18.56 (1), 18.56 (2) to (6), 18.56 (9) (intro.), 18.56 (9) (a) to (j), 18.56 (10),
418.57 (4), 18.60 (5), 25.47 and 101.143 (4) (cm);
to consolidate, renumber and
5amend 101.143 (3) (g) (intro.) and 1.;
to amend 13.485 (2), 18.51, 18.57 (1),
618.58 (1), 18.60 (1), 18.60 (2), 18.61 (2), 18.61 (3) (a), 18.61 (3) (b) (intro.), 18.61
7(3) (b) 1., 18.61 (3) (b) 3., 18.61 (3) (b) 4., 18.61 (3) (c), 18.61 (4), 20.143 (3) (v),
845.79 (9) (a), 84.59 (2), 85.52 (5) (c), 101.143 (3) (c) 2., 101.143 (3) (cm), 101.143
9(3) (d), 101.143 (4) (b) (intro.), 101.143 (4) (d) 2. (intro.) and 281.59 (4) (b);
to
10repeal and recreate 18.57 (title); and
to create 18.52 (2m) (intro.), 18.52 (7),
1118.52 (8), 18.53 (3) (a) and (b), 18.561 (title), 18.561 (1), 18.561 (7) (title), 18.561
12(8) (title), 18.561 (9) (k), 18.562, 18.60 (5) (a) to (c), 20.143 (3) (s), 20.143 (3) (t),
1320.143 (3) (u), 20.143 (3) (vb), 25.47 (5), 101.143 (1) (bm), 101.143 (1) (cq),
1101.143 (2) (h), 101.143 (2) (i), 101.143 (2) (j), 101.143 (2e), 101.143 (3) (cg),
2101.143 (3) (cp), 101.143 (3) (cs), 101.143 (3) (cw), 101.143 (4) (c) 10., 101.143
3(4) (c) 11., 101.143 (4) (c) 12., 101.143 (4) (cm) 2., 101.143 (9m) and 101.143 (11)
4of the statutes;
relating to: the petroleum storage remedial action program;
5authorizing revenue obligations to fund payment of claims under the petroleum
6storage remedial action program; authorizing a new type of revenue obligation;
7granting revenue bonding authority; granting rule-making authority; and
8making appropriations.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB218-ASA1,2,1610
13.485
(2) The building commission may, under s.
18.56 18.561 (5) and (9) (j)
11or 18.562 (3) and (5) (e), deposit in a separate and distinct fund, outside the state
12treasury, in an account maintained by a trustee, fees and charges derived from the
13facilities or from agreements entered into under sub. (4). The fees and charges
14deposited are the trustee's moneys in accordance with the agreement between this
15state and the trustee or in accordance with the resolution pledging the fees and
16charges to the repayment of revenue obligations issued under this section.
AB218-ASA1,2,22
1818.51 Provisions applicable. The following sections apply to this
19subchapter, except that all references to "public debt" or "debt"
are deemed shall be
20read to refer to a "revenue obligation"
and all references to "evidences of
21indebtedness" shall be read to refer to "evidences of revenue obligations": ss. 18.02,
2218.03, 18.06 (8), 18.07, 18.10 (1), (2), (4) to (9) and (11) and 18.17.
AB218-ASA1, s. 3
23Section
3. 18.52 (2m) (intro.) of the statutes is created to read:
AB218-ASA1,3,2
118.52
(2m) (intro.) "Enterprise obligation" means every undertaking by the
2state to repay a certain amount of borrowed money that is all of the following:
AB218-ASA1, s. 4
3Section
4. 18.52 (5) (intro.) of the statutes is renumbered 18.52 (5) and
4amended to read:
AB218-ASA1,3,85
18.52
(5) "Revenue obligation" means
every undertaking by the state to repay
6a certain amount of borrowed money which is: an enterprise obligation or a special
7fund obligation. A revenue obligation may be both an enterprise obligation and a
8special fund obligation.
AB218-ASA1, s. 5
9Section
5. 18.52 (5) (a) of the statutes is renumbered 18.52 (2m) (a) and
10amended to read:
AB218-ASA1,3,1311
18.52
(2m) (a) Created for the purpose of purchasing, acquiring, leasing,
12constructing, extending, expanding, adding to, improving, conducting, controlling,
13operating or managing a revenue-producing enterprise or program
;.
AB218-ASA1, s. 6
14Section
6. 18.52 (5) (b) of the statutes is renumbered 18.52 (2m) (b) and
15amended to read:
AB218-ASA1,3,1716
18.52
(2m) (b) Payable
solely from and secured
solely by the property or income
17or both of the enterprise or program
; and.
AB218-ASA1, s. 7
18Section
7. 18.52 (5) (c) of the statutes is renumbered 18.52 (2m) (c).
AB218-ASA1,3,2120
18.52
(7) "Special fund obligation" means every undertaking by the state to
21repay a certain amount of borrowed money that is all of the following:
AB218-ASA1,3,2222
(a) Payable from a special fund consisting of fees, penalties or excise taxes.
AB218-ASA1,3,2323
(b) Not public debt under s. 18.01 (4).
AB218-ASA1,4,3
118.52
(8) "Special fund program" means a state program or purpose with
2respect to which the legislature has determined that financing with special fund
3obligations is appropriate and will serve a public purpose.
AB218-ASA1, s. 10
4Section
10. 18.53 (3) of the statutes is renumbered 18.53 (3) (intro.) and
5amended to read:
AB218-ASA1,4,136
18.53
(3) (intro.) The commission shall authorize money to be borrowed and
7evidences of revenue obligation to be issued
therefor up to the amounts specified by
8the legislature to purchase, acquire, lease, construct, extend, expand, add to,
9improve, conduct, control, operate or manage such revenue-producing enterprises
10or programs as are specified by the legislature as the funds are required. The
11requirements for funds shall be established by the state department or agency head
12carrying out program responsibilities for which the revenue obligations have been
13authorized by the legislature
., but shall not exceed the following:
AB218-ASA1, s. 11
14Section
11. 18.53 (3) (a) and (b) of the statutes are created to read:
AB218-ASA1,4,1815
18.53
(3) (a) In the case of enterprise obligations, the amounts specified by the
16legislature to purchase, acquire, lease, construct, extend, expand, add to, improve,
17conduct, control, operate or manage such revenue-producing enterprises or
18programs as are specified by the legislature.
AB218-ASA1,4,2019
(b) In the case of special fund obligations, the amount specified by the
20legislature for such expenditures to be paid from special fund obligations.
AB218-ASA1, s. 12
21Section
12. 18.56 (1) of the statutes is renumbered 18.56 and amended to read:
AB218-ASA1,5,8
2218.56 Revenue bonds
obligations. The commission may authorize, for any
23of the purposes described in s. 18.53 (3), the issuance of
revenue-obligation bonds 24revenue obligations. The
bonds
revenue obligations shall mature at any time not
25exceeding 50 years from the date thereof as the commission shall determine. The
1bonds revenue obligations shall be payable only out of the redemption fund provided
2under
sub. s. 18.561 (5)
or 18.562 (3) and each
bond revenue obligation shall contain
3on its face a statement to that effect.
Any such bonds A revenue obligation may
4contain a provision authorizing redemption, in whole or in part, at stipulated prices,
5at the option of the commission and shall provide the method of redeeming the
bonds.
6The state and a contracting party may provide in any contract for purchasing or
7acquiring a revenue-producing enterprise or program, that payment shall be made
8in such bonds revenue obligations.
AB218-ASA1, s. 13
9Section
13. 18.56 (2) to (6) of the statutes are renumbered 18.561 (2) to (6) and
10amended to read:
AB218-ASA1,6,1811
18.561
(2) Security interests of owners of enterprise obligations. There
12shall be is a mortgage lien upon or security interest in the income and property of
13each revenue-producing enterprise or program
to for the benefit of the
holders 14owners of the related
bonds and to the holders of the coupons of the bonds. The note
15or other instrument evidencing the security interest of a bondholder in a loan made
16or purchased with revenue obligation bonds shall constitute a statutory lien on the
17revenue enterprise obligations. No physical delivery, recordation or other action is
18required to perfect the security interest. The
income and property of the 19revenue-producing enterprise or program shall remain subject to the lien until
20provision for payment in full of the principal and interest of the
bonds enterprise
21obligations has been made
, as provided in the authorizing resolution. Any
holder 22owner of such
bonds or attached coupons enterprise obligations may either at law or
23in equity protect and enforce the lien and compel performance of all duties required
24by this section. If there is any default in the payment of the principal or interest of
25any of such
bonds enterprise obligations, any court having jurisdiction of the action
1may appoint a receiver to administer the revenue-producing enterprise or program
2on behalf of the state and the
bondholders owners of the enterprise obligations, with
3power to charge and collect rates sufficient to provide for the payment of the
4operating expenses and also to pay any
bonds or enterprise obligations outstanding
5against the revenue-producing enterprise or program, and to apply the income and
6revenues thereof in conformity with this subchapter and the authorizing resolution,
7or the court may declare the whole amount of the
bonds
enterprise obligations due
8and payable, if such relief is requested, and may order and direct the sale of the
9revenue-producing enterprise or program. Under any sale so ordered, the purchaser
10shall be vested with an indeterminate permit to maintain and operate the
11revenue-producing enterprise or program. The legislature may provide for
12additions, extensions and improvements to a revenue-producing enterprise or
13program to be financed by additional issues of
bonds
enterprise obligations as
14provided by this section. Such additional issues of
bonds enterprise obligations shall
15be subordinate to all prior related issues of
bonds
enterprise obligations which may
16have been made under this section, unless the legislature, in the statute authorizing
17the initial issue of
bonds enterprise obligations, permits the issue of additional
bonds 18enterprise obligations on a parity therewith.
AB218-ASA1,7,7
19(3) Dedication of revenues. As accurately as possible in advance, the
20commission and the state department or agency carrying out program
21responsibilities for which
bonds enterprise obligations are to be issued shall
22determine, and the commission shall fix in the authorizing resolution for such
bonds 23enterprise obligations: the proportion of the revenues of the revenue-producing
24enterprise or program which shall be necessary for the reasonable and proper
25operation and maintenance thereof; the proportion of the revenues which shall be set
1aside as a proper and adequate replacement and reserve fund; and the proportion of
2the revenues which shall be set aside and applied to the payment of the principal and
3interest of the
bonds enterprise obligations, and shall provide that the revenues be
4set aside in separate funds. At any time after one year's operation, the state
5department or agency and the commission may recompute the proportion of the
6revenues which shall be assignable under this subsection based upon the experience
7of operation or upon the basis of further financing.
AB218-ASA1,7,19
8(4) Replacement and reserve fund. The proportion set aside to the
9replacement and reserve fund shall be available and shall be used, whenever
10necessary, to restore any deficiency in the redemption fund for the payment of the
11principal and interest due on
bonds enterprise obligations and for the creation and
12maintenance of any reserves established by the authorizing resolution to secure such
13payments. At any time when the redemption fund is sufficient for said purposes,
14moneys in the replacement and reserve fund may, subject to available
15appropriations, be expended either in the revenue-producing enterprise or program
16or in new
acquisitions, constructions, extensions
or, additions
, expansions or
17improvements. Any accumulations of the replacement and reserve fund may be
18invested as provided in this subchapter, and if invested, the income from the
19investment shall be carried in the replacement and reserve fund.
AB218-ASA1,8,7
20(5) Redemption fund. The proportion which shall be set aside for the payment
21of the principal and interest
of such bonds on the enterprise obligations shall from
22month to month as they accrue and are received, be set apart and paid into a separate
23fund in the treasury or in an account maintained by a trustee under sub. (9) (j) to be
24identified as "the ... redemption fund". Each redemption fund shall be expended, and
25all moneys from time to time on hand therein are irrevocably appropriated, in sums
1sufficient, only for the payment of principal and interest on the
revenue enterprise 2obligations giving rise to it and premium, if any, due upon
refunding redemption of
3any such obligations. Moneys in the redemption funds may be commingled only for
4the purpose of investment with other public funds, but they shall be invested only
5in investment instruments permitted in s. 25.17 (3) (dr). All such investments shall
6be the exclusive property of the fund and all earnings on or income from such
7investments shall be credited to the fund.
AB218-ASA1,8,10
8(6) Redemption fund surplus. If any surplus is accumulated in any of the
9redemption funds, subject to any contract rights vested in
holders owners of
revenue 10enterprise obligations secured thereby, it shall be paid over to the treasury.
AB218-ASA1, s. 14
11Section
14. 18.56 (7) and (8) of the statutes are renumbered 18.561 (7) and (8).
AB218-ASA1, s. 15
12Section
15. 18.56 (9) (intro.) of the statutes is renumbered 18.561 (9) (intro.)
13and amended to read:
AB218-ASA1,8,2214
18.561
(9) Authorizing resolution. (intro.) The commission may provide in
15the authorizing resolution for
bonds enterprise obligations or by subsequent action
16all things necessary to carry into effect this section. Any authorizing resolution shall
17constitute a contract with the
holder owners of any
bonds enterprise obligations 18issued pursuant to
such the resolution. Any authorizing resolution may contain such
19provisions or covenants, without limiting the generality of the power to adopt the
20resolution, as
is are deemed necessary or desirable for the security of
bondholders 21the owners of enterprise obligations or the marketability of the
bonds enterprise
22obligations, including
but not limited to provisions as to:
AB218-ASA1, s. 16
23Section
16. 18.56 (9) (a) to (j) of the statutes are renumbered 18.561 (9) (a) to
24(j), and 18.561 (9) (i) and (j), as renumbered, are amended to read:
AB218-ASA1,8,2525
18.561
(9) (i) Issuance of additional
bonds enterprise obligations.
AB218-ASA1,9,3
1(j) Deposit of the proceeds of the sale of the
bonds enterprise obligations or
2revenues of the revenue-producing enterprise or program in trust, including the
3appointment of depositories or trustees.
AB218-ASA1, s. 17
4Section
17. 18.56 (10) of the statutes is renumbered 18.561 (10) and amended
5to read:
AB218-ASA1,9,256
18.561
(10) Sinking fund. The authorizing resolution may set apart
bonds 7enterprise obligations the par value of which are equal to the principal amount of any
8secured obligation or charge subject to which a revenue-producing enterprise or
9program is to be purchased or acquired, and shall set aside in a sinking fund from
10the income of the revenue-producing enterprise or program, a sum sufficient to
11comply with the requirements of the instrument creating the security
, or if interest.
12If the instrument does not make any provision
therefor for a sinking fund, the
13resolution shall fix and determine the amount
which
that shall be set aside into
such 14the sinking fund from month to month for interest on the secured obligation or
15charge, and a fixed amount or proportion not exceeding a stated sum, which shall be
16not less than one percent of the principal, to be set aside into the fund to pay the
17principal of the secured obligation or charge. Any balance in the fund after satisfying
18the secured obligations or charge
, shall be transferred to the redemption fund.
Bonds 19Enterprise obligations set aside for the secured obligation or charge may, from time
20to time, be issued to an amount sufficient with the amount then in the sinking fund,
21to pay and retire the secured obligation or charge or any portion thereof. The
bonds 22enterprise obligation may be issued in exchange for or satisfaction of the secured
23obligation or charge, or may be sold in the manner provided in this subchapter, and
24the proceeds applied in payment of the same at maturity or before maturity by
25agreement with the
holder owner of the secured obligation or charge. The
1commission and the owners of any revenue-producing enterprise or program
2acquired or purchased may, upon such terms and conditions as are satisfactory,
3contract that
bonds enterprise obligations to provide for the discharge of the secured
4obligation or charge, or for the whole purchase price shall be deposited with a trustee
5or depository and released from the deposit from time to time on such terms and
6conditions as are necessary to secure the payment of the secured obligation or charge.
AB218-ASA1,10,8
818.561 (title)
Enterprise obligations.
AB218-ASA1,10,1210
18.561
(1) Payment with revenue obligations. The state and a contracting
11party may provide, in any contract for purchasing or acquiring a revenue-producing
12enterprise or program, that payment shall be made in revenue obligations.
AB218-ASA1, s. 20
13Section
20. 18.561 (7) (title) of the statutes is created to read:
AB218-ASA1,10,1414
18.561
(7) (title)
Payment for services.
AB218-ASA1, s. 21
15Section
21. 18.561 (8) (title) of the statutes is created to read:
AB218-ASA1,10,1616
18.561
(8) (title)
Rates for services.
AB218-ASA1,10,1818
18.561
(9) (k) Defeasance of the obligations.
AB218-ASA1,11,5
2018.562 Special fund obligations. (1) Security interest in special fund. 21There is a security interest, for the benefit of the owners of the special fund
22obligations, in the amounts that arise after the creation of the special fund program
23in the special fund related to the special fund obligations. For this purpose, amounts
24in the special fund shall be accounted for on a first-in, first-out basis. No physical
25delivery, recordation or other action is required to perfect the security interest. The
1special fund shall remain subject to the security interest until provision for payment
2in full of the principal and interest of the special fund obligations has been made, as
3provided in the authorizing resolution. An owner of special fund obligations may
4either at law or in equity protect and enforce the security interest and compel
5performance of all duties required by this section.
AB218-ASA1,11,11
6(2) Use of special fund moneys. The commission and the state agency carrying
7out the special fund program responsibilities shall jointly determine, and the
8commission shall fix in the authorizing resolution for the obligations, the conditions
9under which money in the special fund shall be set aside and applied to the payment
10of the principal and interest of the obligations, deposited in funds established under
11the authorizing resolution or made available for other purposes.
AB218-ASA1,11,23
12(3) Redemption fund. The special fund revenues that are to be set aside for the
13payment of the principal and interest of the special fund obligations shall be paid into
14a separate fund in the treasury or in an account maintained by a trustee under sub.
15(5) (e) to be identified as "the ... redemption fund". Each redemption fund shall be
16expended, and all moneys from time to time on hand therein are irrevocably
17appropriated, in sums sufficient, only for the payment of principal and interest on
18the special fund obligations giving rise to it and premium, if any, due upon
19redemption of any such obligations. Moneys in the redemption funds may be
20commingled only for the purpose of investment with other public funds, but they
21shall be invested only in investment instruments permitted in s. 25.17 (3) (dr). All
22such investments shall be the exclusive property of the fund and all earnings on or
23income from such investments shall be credited to the fund.
AB218-ASA1,12,3
1(4) Surplus. If any surplus is accumulated in any of the redemption funds,
2subject to contract rights vested in the owners of special fund obligations secured
3thereby, it shall be paid over to the treasury.
AB218-ASA1,12,11
4(5) Authorizing resolution. The commission may provide in the authorizing
5resolution for special fund obligations or by subsequent action all things necessary
6to carry into effect this section. Any authorizing resolution shall constitute a
7contract with the owners of any special fund obligations issued pursuant to the
8resolution. An authorizing resolution may contain such provisions or covenants,
9without limiting the generality of the power to adopt the resolution, as are deemed
10necessary or desirable for the security of owners of the obligations or the
11marketability of the obligations, including provisions as to:
AB218-ASA1,12,1212
(a) Employment of consultants.
AB218-ASA1,12,1313
(b) Records and accounts.
AB218-ASA1,12,1414
(c) Establishment of reserve or other funds.
AB218-ASA1,12,1515
(d) Issuance of additional obligations.