AB348: Bill Text

AB348,11,9 18.561 (1) Payment with revenue obligations. The state and a contracting party may provide, in any contract for purchasing or acquiring a revenue-producing enterprise or program, that payment shall be made in revenue obligations.

AB348, s. 20 Section 20. 18.561 (7) (title) of the statutes is created to read:

AB348,11,11 18.561 (7) (title) Payment for services.

AB348, s. 21 Section 21. 18.561 (8) (title) of the statutes is created to read:

AB348,11,13 18.561 (8) (title) Rates for services.

AB348, s. 22 Section 22. 18.561 (9) (k) of the statutes is created to read:

AB348,11,15 18.561 (9) (k) Defeasance of the obligations.

AB348, s. 23 Section 23. 18.562 of the statutes is created to read:

AB348,12,2 18.562 Special fund obligations. (1) Security interest in special fund. There is a security interest, for the benefit of the owners of the special fund obligations, in the amounts that arise after the creation of the special fund program in the special fund related to the special fund obligations. For this purpose, amounts in the special fund shall be accounted for on a first-in, first-out basis. No physical delivery, recordation or other action is required to perfect the security interest. The special fund shall remain subject to the security interest until provision for payment in full of the principal and interest of the special fund obligations has been made, as provided in the authorizing resolution. An owner of special fund obligations may either at law or in equity protect and enforce the security interest and compel performance of all duties required by this section.

AB348,12,8 (2) Use of special fund moneys. The commission and the state agency carrying out the special fund program responsibilities shall jointly determine, and the commission shall fix in the authorizing resolution for the obligations, the conditions under which money in the special fund shall be set aside and applied to the payment of the principal and interest of the obligations, deposited in funds established under the authorizing resolution or made available for other purposes.

AB348,12,20 (3) Redemption fund. The special fund revenues that are to be set aside for the payment of the principal and interest of the special fund obligations shall be paid into a separate fund in the treasury or in an account maintained by a trustee under sub. (5) (e) to be identified as "the ... redemption fund". Each redemption fund shall be expended, and all moneys from time to time on hand therein are irrevocably appropriated, in sums sufficient, only for the payment of principal and interest on the special fund obligations giving rise to it and premium, if any, due upon redemption of any such obligations. Moneys in the redemption funds may be commingled only for the purpose of investment with other public funds, but they shall be invested only in investment instruments permitted in s. 25.17 (3) (dr). All such investments shall be the exclusive property of the fund and all earnings on or income from such investments shall be credited to the fund.

AB348,12,23 (4) Surplus. If any surplus is accumulated in any of the redemption funds, subject to contract rights vested in the owners of special fund obligations secured thereby, it shall be paid over to the treasury.

AB348,13,6 (5) Authorizing resolution. The commission may provide in the authorizing resolution for special fund obligations or by subsequent action all things necessary to carry into effect this section. Any authorizing resolution shall constitute a contract with the owners of any special fund obligations issued pursuant to the resolution. An authorizing resolution may contain such provisions or covenants, without limiting the generality of the power to adopt the resolution, as are deemed necessary or desirable for the security of owners of the obligations or the marketability of the obligations, including provisions as to:

AB348,13,7 (a) Employment of consultants.

AB348,13,8 (b) Records and accounts.

AB348,13,9 (c) Establishment of reserve or other funds.

AB348,13,10 (d) Issuance of additional obligations.

AB348,13,12 (e) Deposit of the proceeds of the sale of the obligations or revenues of the special fund in trust, including the appointment of depositories or trustees.

AB348,13,13 (f) Defeasance of the obligations.

AB348, s. 24 Section 24. 18.57 (title) of the statutes is repealed and recreated to read:

AB348,13,15 18.57 (title) Funds established for revenue obligations.

AB348, s. 25 Section 25. 18.57 (1) of the statutes is amended to read:

AB348,14,3 18.57 (1) A separate and distinct fund shall be established in the state treasury or in an account maintained by a trustee under s. 18.56 18.561 (9) (j) with respect to each revenue-producing enterprise or program the income from which is to be applied to the payment of any revenue enterprise obligation. A separate and distinct fund shall be established in the state treasury or in an account maintained by a trustee under s. 18.562 (5) (e) with respect to any special fund that is created by the imposition of fees, penalties or excise taxes and is applied to the payment of special fund obligations. All moneys resulting from the issuance of evidences of revenue obligation shall be credited to the appropriate fund or applied for refunding or note renewal purposes, except that moneys which represent premium or accrued interest received on the issuance of evidences shall be credited to the appropriate redemption fund.

AB348, s. 26 Section 26. 18.57 (4) of the statutes is renumbered 18.57 (4) (intro.) and amended to read:

AB348,14,8 18.57 (4) (intro.) If, after all outstanding related revenue obligations have been paid or payment provided for, moneys remain in any such a fund, they created under sub. (1), all of the following shall occur:

AB348,14,11 (a) If the fund created under sub. (1) is in an account maintained by a trustee under s. 18.561 (9) (j) or 18.562 (5) (e), the moneys shall be paid over to the treasury and the.

AB348,14,12 (b) The fund created under sub. (1) shall be closed.

AB348, s. 27 Section 27. 18.58 (1) of the statutes is amended to read:

AB348,15,2 18.58 (1) Management of funds and records. All funds established under this subchapter which are deposited in the state treasury shall be managed as provided by law for other state funds, subject to any contract rights vested in holders owners of evidences of revenue obligation secured by such fund. The department of administration shall maintain full and correct records of each fund. The legislative audit bureau shall audit each fund as of January 1 of each year reconciling all transactions and showing the fair market value of all property on hand. All records and audits shall be public documents. All funds established under this subchapter which are deposited with a trustee under s. 18.56 18.561 (9) (j) or 18.562 (5) (e) shall be managed in accordance with resolutions authorizing the issuance of revenue obligations, agreements between the commission and the trustee and any contract rights vested in holders of evidence owners of revenue obligations secured by such fund.

AB348, s. 28 Section 28. 18.60 (1) of the statutes is amended to read:

AB348,15,20 18.60 (1) The commission may authorize, for any one or more of the purposes described in s. 18.53 (1), the issuance of revenue-obligation refunding bonds. Refunding bonds may be issued, subject to any contract rights vested in holders owners of bonds or notes being refinanced, to refinance more than one issue of bonds or notes notwithstanding that the bonds or notes may have been issued at different times for different purposes and may be secured by the property or income of more than one enterprise or program or may be public debt or building-corporation indebtedness. The principal amount of refunding bonds shall not exceed the sum of: the principal amount of the bonds or notes being refinanced; applicable redemption premiums; unpaid interest on the bonds or notes to the date of delivery or exchange of the refunding bonds; in the event the proceeds are to be deposited in trust as provided in sub. (3), interest to accrue on the bonds or notes from the date of delivery to the date of maturity or to the redemption date selected by the commission, whichever is earlier; and the expenses incurred in the issuance of the refunding bonds and the payment of the bonds or notes. A determination by the commission that a refinancing is advantageous or that any of the amounts provided in the preceding sentence should be included in the refinancing shall be conclusive.

AB348, s. 29 Section 29. 18.60 (2) of the statutes is amended to read:

AB348,16,12 18.60 (2) If the commission determines to exchange refunding bonds, they may be exchanged privately for and in payment and discharge of any of the outstanding bonds or notes being refinanced. Refunding bonds may be exchanged for a like or greater principal amount of the bonds or notes being exchanged therefor except that the principal amount of the refunding bonds may exceed the principal amount of the bonds or notes being exchanged therefor only to the extent determined by the commission to be necessary or advisable to pay redemption premiums and unpaid interest to the date of exchange not otherwise provided for. The holders owners of the bonds or notes being refunded who elect to exchange need not pay accrued interest on the refunding bonds if and to the extent that interest is accrued and unpaid on the bonds or notes being refunded and to be surrendered. If any of the bonds or notes to be refinanced are to be called for redemption, the commission shall determine which redemption dates shall be used, if more than one date is applicable and shall, prior to the issuance of the refunding bonds, provide for notice of redemption to be given in the manner and at the times required by the proceedings authorizing the outstanding bonds or notes.

AB348, s. 30 Section 30. 18.60 (5) of the statutes is renumbered 18.60 (5) (intro.) and amended to read:

AB348,16,18 18.60 (5) (intro.) All of the following provisions of s. 18.56 that are not inconsistent with the express provisions of this section shall apply to refunding bonds, except that the maximum permissible term shall be 50 years from the date of original issue of the oldest note or bond issue being refunded.:

AB348, s. 31 Section 31. 18.60 (5) (a) to (c) of the statutes are created to read:

AB348,16,20 18.60 (5) (a) Section 18.56.

AB348,16,21 (b) In the case of enterprise obligations, s. 18.561.

AB348,16,22 (c) In the case of special fund obligations, s. 18.562.

AB348, s. 32 Section 32. 18.61 (2) of the statutes is amended to read:

AB348,17,7 18.61 (2) The state pledges and agrees with the holders owners of any evidences of revenue obligation obligations that the state will not limit or alter its powers to fulfill the terms of any agreements made with the holders owners or in any way impair the rights and remedies of the holders owners until the revenue obligations, together with interest including interest on any unpaid instalments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of the holders owners, are fully met and discharged. The commission may include this pledge and agreement of the state in any agreement with the holders of notes or bonds and in any evidence owners of revenue obligation.

AB348, s. 33 Section 33. 18.61 (3) (a) of the statutes is amended to read:

AB348,17,17 18.61 (3) (a) If the state fails to pay any revenue obligation in accordance with its terms, and default continues for a period of 30 days or if the state fails or refuses to comply with this subchapter or defaults in any agreement made with the holders owners of any issue of revenue obligations, the holders owners of 25% in aggregate principal amount of the revenue obligations of the issue then outstanding by instrument recorded in the office of the register of deeds of Dane county and approved or acknowledged in the same manner as a deed to be recorded may appoint a trustee to represent the holders owners of the notes or bonds revenue obligations for the purposes specifically provided in the instrument.

AB348, s. 34 Section 34. 18.61 (3) (b) (intro.) of the statutes is amended to read:

AB348,17,21 18.61 (3) (b) (intro.) The trustee may, and upon written request of the holders owners of 25% in aggregate principal amount of the revenue obligations of the issue then outstanding shall, in the trustee's own name:

AB348, s. 35 Section 35. 18.61 (3) (b) 1. of the statutes is amended to read:

AB348,18,3 18.61 (3) (b) 1. By action or proceeding, enforce all rights of all holders owners of the issue of revenue obligations, including the right to require the state to collect enterprise or program income adequate to carry out any agreement as to, or pledge of, such income and to require the state to carry out any other agreements with the holders owners of the revenue obligations and to perform its duties under this subchapter;

AB348, s. 36 Section 36. 18.61 (3) (b) 3. of the statutes is amended to read:

AB348,18,6 18.61 (3) (b) 3. By action, require the state to account as if it were the trustee of an express trust for the holders owners of the revenue obligations;

AB348, s. 37 Section 37. 18.61 (3) (b) 4. of the statutes is amended to read:

AB348,18,9 18.61 (3) (b) 4. By action, enjoin any acts or things which may be unlawful or in violation of the rights of the holders owners of the revenue obligations; and

AB348, s. 38 Section 38. 18.61 (3) (c) of the statutes is amended to read:

AB348,18,14 18.61 (3) (c) The trustee shall have all of the powers necessary or appropriate for the exercise of any functions specifically set forth in this subchapter or incident to the general representation of the holders owners of revenue obligations in the enforcement and protection of their rights.

AB348, s. 39 Section 39. 18.61 (4) of the statutes is amended to read:

AB348,18,22 18.61 (4) Any public officer or public employe, as defined in s. 939.22 (30), and the surety on the person's official bond, or any other person participating in any direct or indirect impairment of any fund established under this subchapter, shall be liable in any action brought by the attorney general in the name of the state, or by any taxpayer of the state, or by the holder of any evidence owner of revenue obligation payable in whole or in part, directly or indirectly, out of such fund, to restore to the fund all diversions from the fund.

AB348, s. 40 Section 40. 20.143 (3) (s) of the statutes is created to read:

AB348,19,6 20.143 (3) (s) Petroleum inspection fund — revenue obligation proceeds. As a continuing appropriation, all proceeds from revenue obligations that are issued under subch. II or IV of ch. 18, authorized under s. 101.143 (9m) and deposited in a fund in the state treasury created under s. 18.57 (1), to provide for reserves and for expenses of issuance and management of the revenue obligations, and the remainder to be transferred to the petroleum inspection fund for the purposes of the petroleum storage remedial action program under s. 101.143. Estimated disbursements under this paragraph shall not be included in the schedule under s. 20.005.

AB348, s. 41 Section 41. 20.143 (3) (t) of the statutes is created to read:

AB348,19,11 20.143 (3) (t) Petroleum inspection fund -- revenue obligation repayment. From the petroleum inspection fund, a sum sufficient to repay the fund in the state treasury created under s. 18.57 (1) the amount needed to retire revenue obligations issued under subch. II or IV of ch. 18, as authorized under s. 101.143 (9m).

AB348, s. 42 Section 42. 20.143 (3) (u) of the statutes is created to read:

AB348,19,22 20.143 (3) (u) Revenue obligation debt service -- petroleum inspection fund. From the fund in the state treasury created under s. 18.57 (1), all moneys received by the fund for the purpose of the retirement of revenue obligations, providing for reserves and for operations relating to the management and retirement of revenue obligations issued under subch. II or IV of ch. 18, as authorized under s. 101.143 (9m). All moneys received by the fund are irrevocably appropriated in accordance with subch. II of ch. 18 and further established in resolutions authorizing the issuance of the revenue obligations and setting forth the distribution of funds to be received thereafter. Estimated disbursements under this paragraph shall not be included in the schedule under s. 20.005.

AB348, s. 43 Section 43. 20.143 (3) (v) of the statutes is amended to read:

AB348,20,3 20.143 (3) (v) Petroleum storage environmental remedial action; awards. Biennially, from the petroleum inspection fund, the amounts in the schedule to pay awards under s. 101.143 and, legal costs incurred under s. 101.143 (7m), amounts to reduce principal of outstanding revenue obligations issued pursuant to s. 101.143 (9m).

AB348, s. 44 Section 44. 20.143 (3) (vb) of the statutes is created to read:

AB348,20,10 20.143 (3) (vb) Petroleum storage environmental remedial action revenue bonding; awards. From the petroleum inspection fund, a sum sufficient not to exceed the net proceeds of special fund obligations issued pursuant to s. 101.143 (9m) to pay awards under s. 101.143 (4) and legal costs incurred under s. 101.143 (7m). Estimated disbursements under this paragraph shall not be included in the schedule under s. 20.005.

AB348, s. 45 Section 45. 25.47 of the statutes is renumbered 25.47 (intro.) and amended to read:

AB348,20,14 25.47 Petroleum inspection fund. (intro.) There is established a separate nonlapsible trust fund designated as the petroleum inspection fund, to consist of the:

AB348,20,15 (1) The fees imposed under s. 168.12 (1), the.

AB348,20,16 (2) The payments under s. 101.143 (4) (h) 1m., the

AB348,20,17 (3) The payments under s. 101.143 (5) (a) and the.

AB348,20,18 (4) The net recoveries under s. 101.143 (5) (c).

AB348, s. 46 Section 46. 25.47 (5) of the statutes is created to read:

AB348,20,21 25.47 (5) The moneys transferred from the appropriation account under s. 20.143 (3) (s).

AB348, s. 47 Section 47. 45.79 (9) (a) of the statutes is amended to read:

AB348,21,8 45.79 (9) (a) All moneys received from any source for repayment of loans, mortgages or mortgage loan notes funded with proceeds of revenue obligations issued under sub. (6) (c) shall be deposited into one or more separate nonlapsible trust funds in the state treasury or with a trustee as provided in s. 18.56 18.561 (9) (j) or 18.562 (5) (e). The board may pledge revenues received by the funds to secure revenue obligations issued under sub. (6) (c) and shall have all other powers necessary and convenient to distribute the proceeds of the revenue obligations and loan repayments in accordance with subch. II of ch. 18. Unrestricted balances in the funds may be used to fund additional loans issued under sub. (6) (c) and pay the balances owing on loans after the assumptions of the loans or the closings of the sales of residences under sub. (10) (c).

AB348, s. 48 Section 48. 84.59 (2) of the statutes is amended to read:

AB348,21,15 84.59 (2) The department may, under s. 18.56 18.561 (5) and (9) (j) or 18.562 (3) and (5) (e), deposit in a separate and distinct fund outside the state treasury, in an account maintained by a trustee, revenues derived under s. 341.25. The revenues deposited are the trustee's revenues in accordance with the agreement between this state and the trustee or in accordance with the resolution pledging the revenues to the repayment of revenue obligations issued under this section.

AB348, s. 49 Section 49. 85.52 (5) (c) of the statutes is amended to read:

AB348,21,24 85.52 (5) (c) The department of administration may, under s. 18.56 18.561 (5) and (9) (j) or 18.562 (3) and (5) (e), deposit in a separate and distinct fund in the state treasury or in an account maintained by a trustee outside the state treasury, any portion of the revenues derived under s. 25.405 (2). The revenues deposited with a trustee outside the state treasury are the trustee's revenues in accordance with the agreement between this state and the trustee or in accordance with the resolution pledging the revenues to the repayment of revenue obligations issued under this subsection.

AB348, s. 50 Section 50. 101.143 (9m) of the statutes is created to read:

AB348,22,8 101.143 (9m) Revenue obligations. (a) For purposes of subch. II of ch. 18, the petroleum storage remedial action program is a special fund program, and the petroleum inspection fund is a special fund. The petroleum inspection fund is a segregated fund created by the imposition of fees, penalties or excise taxes. The legislature finds and determines that a nexus exists between the petroleum storage remedial action program and the petroleum inspection fund in that fees imposed on users of petroleum are used to remedy environmental damage caused by petroleum storage.

AB348,22,13 (b) Deposits, appropriations or transfers to the petroleum inspection fund for the purposes of the petroleum storage remedial action program may be funded with the proceeds of revenue obligations issued subject to and in accordance with subch. II of ch. 18 and, if designated a higher education bond, in accordance with subch. IV of ch. 18.

AB348,22,17 (e) The department shall have all other powers necessary and convenient to distribute the special fund revenues and to distribute the proceeds of the revenue obligations in accordance with subch. II of ch. 18 and, if designated a higher education bond, in accordance with subch. IV of ch. 18.

AB348,22,21 (f) The department may enter into agreements with the federal government or its agencies, political subdivisions of this state, individuals or private entities to insure or in any other manner provide additional security for the revenue obligations issued under this subsection.

AB348,23,5 (g) Revenue obligations may be contracted by the building commission when it reasonably appears to the building commission that all obligations incurred under this subsection can be fully paid on a timely basis from moneys received or anticipated to be received. Revenue obligations issued under this subsection may not exceed $450,000,000 in principal amount. In addition to this limit on principal amount, the building commission may contract revenue obligations under this subsection as the building commission determines is desirable to fund or refund outstanding revenue obligations, to pay issuance or administrative expenses, to make deposits to reserve funds or to pay accrued or capitalized interest.

AB348,23,11 (h) Unless otherwise expressly provided in resolutions authorizing the issuance of revenue obligations or in other agreements with the owners of revenue obligations, each issue of revenue obligations under this subsection shall be on a parity with every other revenue obligation issued under this subsection and in accordance with subch. II of ch. 18 and, if designated a higher education bond, in accordance with subch. IV of ch. 18.

AB348,23,17 (i) Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that, if the legislature reduces the rate of the petroleum inspection fee and if the funds in the petroleum inspection fund are insufficient to pay the principal and interest on the revenue obligations issued under subch. II or IV of ch. 18 pursuant to this subsection, the legislature shall make an appropriation from the general fund sufficient to pay the principal and interest on the obligations.

AB348, s. 51 Section 51. 281.59 (4) (b) of the statutes is amended to read:

AB348,24,2 281.59 (4) (b) The department of administration may, under s. 18.56 18.561 (5) and (9) (j) or 18.562 (3) and (5) (e), deposit in a separate and distinct fund in the state treasury or in an account maintained by a trustee outside the state treasury, any portion of the revenues derived under s. 25.43 (1). The revenues deposited with a trustee outside the state treasury are the trustee's revenues in accordance with the agreement between this state and the trustee or in accordance with the resolution pledging the revenues to the repayment of revenue obligations issued under this subsection.