AB892: Bill Text Engrossed

AB892-engrossed,40,2 229.825 Special fund tax revenues. (1) The district board shall maintain a special fund into which it deposits all of the revenue received from the department of revenue, that is derived from the taxes imposed under subch. V of ch. 77 and from football donations, as defined in s. 71.10 (5e) (a) 2., and may use this revenue only for the purposes specified in sub. (2). The district may not deposit any other moneys into the special fund, except that the district shall credit all earnings on the revenues in the special fund to the special fund. The earnings on the revenues shall be used only for the purposes specified in sub. (2).

AB892-engrossed,40,8 (2) The district shall first use the revenues in the special fund maintained under sub. (1) for the payment of current debt service on bonds issued by the district for purposes related to football stadium facilities. If the revenues in the special fund in any year exceed the amount required to pay current debt service on bonds issued by the district for purposes related to football stadium facilities, the district shall apply the excess revenues for the following purposes in the following order:

AB892-engrossed,40,13 (a) If the 2nd question under s. 229.824 (15) is submitted and approved by the electors, in the 1st, 2nd and 3rd years after the year in which the 2nd question is approved, the district shall pay the county that is in the district's jurisdiction an amount equal to the remaining revenues in the fund for the purpose of directly reducing the county's property tax levy.

AB892-engrossed,40,21 (b) Beginning in the year that occurs immediately after the year in which the tax is first imposed under s. 77.706, an amount equal to not more than $750,000 may be used to pay the district board's administration expenses. In the succeeding year, an amount equal to not more than $500,000 may be used to pay the district board's administration expenses. In the 2nd succeeding year, and each year thereafter, an amount equal to not more than $100,000 may be used to pay the district board's administration expenses. The amount authorized to be expended under this paragraph may be expended annually until the earlier of the following:

AB892-engrossed,40,23 1. January 1 of the 30th year beginning after the initial year in which the revenues are first used to pay the district board's administration expenses.

AB892-engrossed,41,2 2. The year in which the district board determines that the balance of moneys in the reserve created under par. (d) 2. or (e) 2., whichever is applicable, plus all projected earnings on the moneys, are sufficient to pay the district board's administrative expenses through the time specified under subd. 1.

AB892-engrossed,41,15 (c) Beginning in the year that occurs immediately after the year in which the tax is first imposed under s. 77.706, an amount equal to the lesser of the remaining revenues in the fund or $4,031,000 shall be deposited into a reserve that is used to pay the maintenance and operating costs of the football stadium facilities unless the professional football team described in s. 229.823, after consulting with the municipality in which the football stadium facilities are located, agrees to a lesser amount. The $4,031,000 amount shall be increased each year thereafter by 3%, and the lesser of the remaining revenues in the fund or the $4,031,000 amount, increased each year thereafter by 3%, shall be deposited into a reserve that is used to pay the maintenance and operating costs of the football stadium facilities unless the professional football team described in s. 229.823, after consulting with the municipality in which these facilities are located, agrees to a lesser amount. The deposits shall be made annually until the earlier of the following:

AB892-engrossed,41,18 1. January 1 of the 28th year beginning after the initial year in which the revenues are first used to pay the maintenance and operating costs of the football stadium facilities.

AB892-engrossed,41,22 2. The year in which the district board determines that the balance of moneys in the reserve created, plus all projected earnings on the moneys, are sufficient to pay the maintenance and operating costs of the football stadium facilities in the amounts specified in par. (c) (intro.) through the time specified under subd. 1.

AB892-engrossed,42,2 (d) If the 2nd question under s. 229.824 (15) is submitted and approved by the electors, the district shall pay the remainder to the county that is in the district's jurisdiction for the purpose of directly reducing the county's property tax levy or, if the county board otherwise requires, the district shall use any portion of the remainder for the following purposes:

AB892-engrossed,42,4 1. To retire bonds issued for purposes related to football stadium facilities, and any bonds issued to fund or refund those bonds, prior to their maturity.

AB892-engrossed,42,10 2. To fully fund the reserve to pay the maintenance and operating costs of the football stadium facilities specified in par. (c) and to establish a reserve to pay the district board's administration expenses specified in par. (b), but only after all bonds issued for purposes related to football stadium facilities and all bonds issued to fund or refund those bonds are retired or have been paid in accordance with the defeasance provisions of the bond resolution authorizing the issuance of the bonds.

AB892-engrossed,42,12 (e) If the 2nd question under s. 229.824 (15) is not submitted or not approved by the electors, the district shall use the remainder for the following purposes:

AB892-engrossed,42,14 1. To retire bonds issued for purposes related to football stadium facilities, and any bonds issued to fund or refund those bonds, prior to their maturity.

AB892-engrossed,42,20 2. To fully fund the reserve to pay the maintenance and operating costs of the football stadium facilities specified in par. (c) and to establish a reserve to pay the district board's administration expenses specified in par. (b), but only after all bonds issued for purposes related to football stadium facilities and all bonds issued to fund or refund those bonds are retired or have been paid in accordance with the defeasance provisions of the bond resolution authorizing the issuance of the bonds.

AB892-engrossed,42,21 (3) The district board shall do all of the following:

AB892-engrossed,43,2 (a) As soon as practicable after all bonds issued for purposes related to football stadium facilities and all bonds issued to fund or refund those bonds are retired or have been paid in accordance with the defeasance provisions of the bond resolution authorizing the issuance of the bonds, the district board shall make a certification to the department of revenue to that effect.

AB892-engrossed,43,5 (b) As soon as practicable after fully funding the reserves specified under sub. (2) (d) 2. or (e) 2., whichever is applicable, the district board shall make a certification to the department of revenue to that effect.

AB892-engrossed,43,8 229.826 Powers granted to a municipality or county. In addition to any powers that it may otherwise have, a county or municipality located wholly or partly within a district's jurisdiction may do any of the following:

AB892-engrossed,43,10 (1) Make grants or loans to a district upon terms that the county or municipality considers appropriate.

AB892-engrossed,43,11 (2) Expend public funds to subsidize a district.

AB892-engrossed,43,13 (3) Borrow money under ss. 67.04 and 67.12 (12) for football stadium facilities or to fund grants, loans or subsidies to a district.

AB892-engrossed,43,15 (4) Lease or transfer property to a district upon terms that the county or municipality considers appropriate.

AB892-engrossed,43,19 (5) With the consent of a district, establish and collect fees or other charges applicable only to a football stadium for the right to purchase admission to events at the stadium, if the proceeds from any amount that is collected under this subsection are used for purposes related to football stadium facilities.

AB892-engrossed,43,25 229.827 Contracting. (1) Unless a district board determines that it is not feasible to do so, the district shall enter into a contract with a professional football team, as described in s. 229.823, or a related party, that requires the team or related party to acquire and construct football stadium facilities that are part of any facilities that are leased by the district to the team or to a related party, without regard to whether the football stadium facilities are financed by the district.

AB892-engrossed,44,4 (2) Unless otherwise provided in an agreement with a professional football team, as described in s. 229.823, the district shall be responsible only for the maintenance and operating costs of the football stadium facilities up to an amount that is in the reserve specified in s. 229.825 (2) (c).

AB892-engrossed,44,5 229.8273 Minority and women contracting. (1) In this section:

AB892-engrossed,44,9 (a) "Contractor" means a professional football team, as described under s. 229.823, or a related party or any other person who enters into a contract for construction or renovation work or professional services contracts, as described in sub. (2).

AB892-engrossed,44,10 (b) "Minority business" has the meaning given in s. 560.036 (1) (e).

AB892-engrossed,44,11 (c) "Minority group member" has the meaning given in s. 560.036 (1) (f).

AB892-engrossed,44,14 (d) "Women's business" means a sole proprietorship, partnership, joint venture or corporation that is at least 51% owned, controlled and actively managed by women.

AB892-engrossed,44,22 (2) A district shall ensure that, for construction or renovation work and professional services contracts that relate to the construction or renovation of football stadium facilities that are financed by the proceeds of bonds issued under s. 229.824 (8), a person who is awarded such a contract by the district or by a contractor shall agree, as a condition to receiving the contract, that his or her goal shall be to ensure that at least 15% of the employes hired because of the contract will be minority group members and at least 5% of the employes hired because of the contract will be women.

AB892-engrossed,45,2 (3) It shall be a goal of the district to ensure that at least 15% of the aggregate dollar value of contracts that relate to the construction or renovation of football stadium facilities that are financed by the proceeds of bonds issued under s. 229.824 (8), shall be awarded to minority businesses and at least 5% of the aggregate dollar value of contracts awarded by the board shall be awarded to women's businesses.

AB892-engrossed,45,12 (4) (a) The district shall ensure that, for construction or renovation work and professional services contracts described under sub. (2), a person who is awarded such a contract by the district or by a contractor shall agree, as a condition to receiving the contract, that if he or she is unable to meet the goal under sub. (2), he or she shall make a good faith effort to contract with the technical college district board of the technical college district in which the football stadium facilities are to be constructed or renovated, or the professional services contract is to be performed, to develop appropriate training programs designed to increase the pool of minority group members and women who are qualified to perform the construction work or professional services.

AB892-engrossed,45,18 (b) If the district is unable to meet the goals under sub. (3), the district shall make a good faith effort to contract with the technical college district board of the technical college district in which the contracts described under sub. (3) are to be performed to develop appropriate training programs designed to increase the pool of minority group members and women who are qualified to perform the contracts described under sub. (3).

AB892-engrossed,45,24 (5) (a) The district shall hire an independent person to monitor and a project coordinator to satisfy the district's and the contractor's compliance with minority contracting goals under subs. (2) and (3). The person hired shall have previous experience working with minority group members. The district shall develop a mechanism to receive regular reports from the person hired with respect to the results of the person's studies of compliance with minority contracting goals.

AB892-engrossed,46,5 (b) If the district or a contractor is unable to meet the goals under sub. (2) or (3), the person hired under par. (a) shall assess whether the district or contractor made a good faith effort to reach the goals. In determining whether a good faith effort was made to meet the goals, the person hired shall consider all of the following factors:

AB892-engrossed,46,8 1. The supply of eligible minority businesses and women's businesses that have the financial capacity, technical capacity and previous experience in the areas in which contracts were awarded.

AB892-engrossed,46,11 2. The competing demands for the services provided by eligible minority businesses and women's businesses, as described in subd. 1., in areas in which contracts were awarded.

AB892-engrossed,46,15 3. The extent to which the district or contractors advertised for and aggressively solicited bids from eligible minority businesses and women's businesses, as described in subd. 1., and the extent to which eligible minority businesses and women's businesses submitted bids.

AB892-engrossed,46,20 (6) Annually the legislative audit bureau shall conduct an audit of the district's efforts to achieve the minority participation and women participation hiring and contracting goals contained in this section. The audit bureau shall distribute a copy of each audit report under this subsection to the district, to the cochairs of the joint committee on finance and to the cochairs of the joint audit committee.

AB892-engrossed,46,21 (7) The goals under subs. (2) and (3) shall apply to all of the following:

AB892-engrossed,46,22 (a) Any insurance-funded repair work on football stadium facilities.

AB892-engrossed,47,2 (b) Any post-construction contract related to football stadium facilities for management of the facilities, for professional services and for development services, except that this paragraph does not apply to a post-construction contract for general maintenance of football stadium facilities that is provided by a political subdivision.

AB892-engrossed,47,6 (c) Any contractor, subcontractor or any other person who is awarded or enters into a contract that relates to the construction or renovation of football stadium facilities that are financed by the proceeds of bonds issued under s. 229.824 (8), or any subcontractor of such a person.

AB892-engrossed,47,12 229.8275 Prevailing wage. A district may not enter into a contract under s. 229.827 with a professional football team, as described in s. 229.823, or a related party that requires the team or related party to acquire and construct football stadium facilities that are part of any facilities that are leased by the district to the team or to a related party unless the professional football team or related party agrees as follows:

AB892-engrossed,47,18 (1) Not to permit any employe working on the football stadium facilities who would be entitled to receive the prevailing wage rate under s. 66.293 and who would not be required or permitted to work more than the prevailing hours of labor, if the football stadium facilities were a project of public works subject to s. 66.293, to be paid less than the prevailing wage rate or to be required or permitted to work more than the prevailing hours of labor, except as permitted under s. 66.293 (4) (a).

AB892-engrossed,47,23 (2) To require any contractor, subcontractor or agent thereof performing work on the football stadium facilities to keep and permit inspection of records in the same manner as a contractor, subcontractor or agent thereof performing work on a project of public works that is subject to s. 66.293 is required to keep and permit inspection of records under s. 66.293 (10).

AB892-engrossed,48,5 (3) Otherwise to comply with s. 66.293 in the same manner as a local governmental unit contracting for the erection, construction, remodeling, repairing or demolition of a project of public works is required to comply with s. 66.293 and to require any contractor, subcontractor or agent thereof performing work on the football stadium facilities to comply with s. 66.293 in the same manner as a contractor, subcontractor or agent thereof performing work on a project of public works that is subject to s. 66.293 is required to comply with s. 66.293.

AB892-engrossed,48,15 229.828 Dissolution of a district. Subject to providing for the payment of its bonds, including interest on the bonds, and the performance of its other contractual obligations, a district may be dissolved by the action of the district board. If a district board adopts a resolution that imposes taxes and the resolution is not approved by the electors, as described in s. 229.824 (15), the district is dissolved. If the district is dissolved, the property of the district shall be transferred to the political subdivisions that compose the district's jurisdiction in such proportions as the secretary of administration determines fairly and reasonably represent the contributions of each political subdivision to the development or improvement of the football stadium facilities.

AB892-engrossed,48,18 229.829 Issuance and negotiability of bonds. (1) Negotiability. All bonds are negotiable for all purposes, notwithstanding their payment from a limited source.

AB892-engrossed,48,21 (2) Employment of financial consultant. A district may retain the building commission or any other person as its financial consultant to assist with and coordinate the issuance of bonds.

AB892-engrossed,48,25 (3) No personal liability. Neither the members of the district board nor any person executing the bonds is liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance of the bonds, unless the personal liability or accountability is the result of wilful misconduct.

AB892-engrossed,49,4 (4) Limit on bonds. The principal amount of bonds, other than refunding bonds, that are issued by a district may not exceed $160,000,000. The limitation under this subsection does not include the principal amount of any bonds that are to be used for any of the following purposes:

AB892-engrossed,49,5 (a) To pay issuance costs of the bonds.

AB892-engrossed,49,6 (b) To pay any original issue discount.

AB892-engrossed,49,7 (c) To make a deposit into a special debt service reserve fund.

AB892-engrossed,49,8 (d) To pay costs of credit enhancement.

AB892-engrossed,49,10 (5) Date of issuance. All bonds, other than refunding bonds, that are issued by a district shall be issued no later than December 31, 2004.

AB892-engrossed,49,16 229.830 Special debt service reserve funds for moral obligation pledge. (1) Designation of special debt service reserve funds. A district may designate one or more accounts in funds created under s. 66.066 (2) (e) as special debt service reserve funds, if, prior to each issuance of bonds to be secured by each special debt service reserve fund, the secretary of administration determines that all of the following conditions are met with respect to the bonds:

AB892-engrossed,49,18 (a) Purpose. The proceeds of the bonds, other than refunding bonds, will be used for purposes related to football stadium facilities.

AB892-engrossed,49,24 (b) Feasibility. The proceeds of bonds, other than refunding bonds, will be used for feasible projects and there is a reasonable likelihood that the bonds will be repaid without the necessity of drawing on funds in the special debt service reserve fund that secures the bonds. The secretary of administration may make the determinations required under this paragraph only after considering all of the following:

AB892-engrossed,50,2 1. Whether a pledge of the tax revenues of the district is made under the bond resolution.

AB892-engrossed,50,3 2. How the tax revenues of the district are pledged to the payment of the bonds.

AB892-engrossed,50,6 3. Revenue projections for the project to be financed by the bonds, including tax revenues, and the reasonableness of the assumptions on which these revenue projections are based.

AB892-engrossed,50,8 4. The proposed interest rates of the bonds and the resulting cash-flow requirements.

AB892-engrossed,50,10 5. The projected ratio of annual tax revenues to annual debt service of the district, taking into account capitalized interest.

AB892-engrossed,50,13 6. Whether an understanding exists providing for repayment by the district to the state of all amounts appropriated to the special debt service reserve fund pursuant to sub. (7).

AB892-engrossed,50,16 7. Whether the district has agreed that the department of administration will have direct and immediate access, at any time and without notice, to all records of the district.

AB892-engrossed,50,20 (c) Limit on bonds issued backed by moral obligation pledge. The principal amount of all bonds, other than refunding bonds, that would be secured by all special debt service reserve funds of the district will not exceed the amount of bonds, other than refunding bonds, that may be issued under s. 229.829 (4).

AB892-engrossed,50,22 (d) Date of issuance. The bonds, other than refunding bonds, will be issued no later than December 31, 2004.

AB892-engrossed,50,24 (e) Refunding bonds. All refunding bonds to be secured by the special debt service reserve fund meet all of the following conditions:

AB892-engrossed,51,2 1. The refunding bonds are to be issued to fund, refund or advance refund bonds secured by a special debt service reserve fund.

AB892-engrossed,51,4 2. The refunding of bonds by the refunding bonds will not adversely affect the risk that the state will be called on to make a payment under sub. (7).

AB892-engrossed,51,10 (f) Approval of outstanding debt. All outstanding debt of the district has been reviewed and approved by the secretary of administration. In determining whether to approve outstanding debt under this paragraph, the secretary may consider any factor which the secretary determines to have a bearing on whether the state moral obligation pledge under sub. (7) should be granted with respect to an issuance of bonds.

AB892-engrossed,51,14 (g) Financial reports. The district has agreed to provide to the department of administration, the legislative fiscal bureau and the legislative audit bureau all financial reports of the district and all regular monthly statements of any trustee of the bonds on a direct and ongoing basis.

AB892-engrossed,51,21 (2) Payment of funds into a special debt service reserve fund. A district shall pay into any special debt service reserve fund of the district any moneys appropriated and made available by the state under sub. (7) for the purposes of the special debt service reserve fund, any proceeds of a sale of bonds to the extent provided in the bond resolution authorizing the issuance of the bonds and any other moneys that are made available to the district for the purpose of the special debt service reserve fund from any other source.

AB892-engrossed,52,12 (3) Use of moneys in the special debt service reserve fund. All moneys held in any special debt service reserve fund of a district, except as otherwise specifically provided, shall be used, as required, solely for the payment of the principal of bonds secured in whole or in part by the special debt service reserve fund, the making of sinking fund payments with respect to these bonds, the purchase or redemption of these bonds, the payment of interest on these bonds or the payment of any redemption premium required to be paid when these bonds are redeemed prior to maturity. If moneys in a special debt service reserve fund at any time are less than the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund, the district may not use these moneys for any optional purchase or optional redemption of the bonds. Any income or interest earned by, or increment to, any special debt service reserve fund due to the investment of moneys in the special debt service reserve fund may be transferred by the district to other funds or accounts of the district to the extent that the transfer does not reduce the amount of the special debt service reserve fund below the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund.

AB892-engrossed,52,20 (4) Limitation on bonds secured by a special debt service reserve fund. A district shall accumulate in each special debt service reserve fund an amount equal to the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund. A district may not at any time issue bonds secured in whole or in part by a special debt service reserve fund if upon the issuance of these bonds the amount in the special debt service reserve fund will be less than the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund.

AB892-engrossed,53,12 (5) Special debt service reserve fund requirement. The special debt service reserve fund requirement for a special debt service reserve fund, as of any particular date of computation, is equal to an amount of money, as provided in the bond resolution authorizing the bonds with respect to which the special debt service reserve fund is established, that may not exceed the maximum annual debt service on the bonds of the district for the fiscal year in which the computation is made or any future fiscal year of the district secured in whole or in part by that special debt service reserve fund. In computing the annual debt service for any fiscal year, bonds deemed to have been paid in accordance with the defeasance provisions of the bond resolution authorizing the issuance of the bonds shall not be included in bonds outstanding on the date of computation. The annual debt service for any fiscal year is the amount of money equal to the aggregate of all of the following calculated on the assumption that the bonds will, after the date of computation, cease to be outstanding by reason, but only by reason, of the payment of bonds when due, and the payment when due, and application in accordance with the bond resolution authorizing those bonds, of all of the sinking fund payments payable at or after the date of computation:

AB892-engrossed,53,15 (a) All interest payable during the fiscal year on all bonds that are secured in whole or in part by the special debt service reserve fund and that are outstanding on the date of computation.

AB892-engrossed,53,18 (b) The principal amount of all of the bonds that are secured in whole or in part by the special debt service reserve fund, are outstanding on the date of computation and mature during the fiscal year.

AB892-engrossed,53,22 (c) All amounts specified in bond resolutions of the district authorizing any of the bonds that are secured in whole or in part by the special debt service reserve fund to be payable during the fiscal year as a sinking fund payment with respect to any of the bonds that mature after the fiscal year.

AB892-engrossed,54,2 (6) Valuation of securities. In computing the amount of a special debt service reserve fund for the purposes of this section, securities in which all or a portion of the special debt service reserve fund is invested shall be valued at par, or, if purchased at less than par, at their cost to the district.

AB892-engrossed,54,17 (7) State moral obligation pledge. If at any time of valuation the special debt service reserve fund requirement under sub. (5) for a special debt service reserve fund exceeds the amount of moneys in the special debt service reserve fund, the district board shall certify to the secretary of administration, the governor, the joint committee on finance and the governing body of the county in the district the amount necessary to restore the special debt service reserve fund to an amount equal to the special debt service reserve fund requirement under sub. (5) for the special debt service reserve fund. If this certification is received by the secretary of administration in an even-numbered year prior to the completion of the budget compilation under s. 16.43, the secretary shall include the certified amount in the budget compilation. In any case, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so certified to the appropriate special debt service reserve fund of the district. Recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that, if ever called upon to do so, it shall make this appropriation.

AB892-engrossed,54,21 (8) Information to joint committee on finance. The district shall provide to the cochairpersons of the joint committee on finance information concerning the district's projected cashflows and security features underlying each issuance of bonds under this subchapter.

AB892-engrossed,55,3 229.831 Bonds not public debt. (1) The state and the county and municipalities located wholly or partly within the district's jurisdiction are not liable on bonds and the bonds are not a debt of the state or the county or any municipality located wholly or partly within the district. All bonds shall contain a statement to this effect on the face of the bond. A bond issue does not, directly or indirectly or contingently, obligate the state or a political subdivision of the state to levy any tax or make any appropriation for payment of the bonds.

AB892-engrossed,55,15 (2) Nothing in this subchapter authorizes a district to create a debt of the state or the county or any municipality located wholly or partly within the district's jurisdiction, and all bonds issued by a district are payable, and shall state that they are payable, solely from the funds pledged for their payment in accordance with the bond resolution authorizing their issuance or in any trust indenture or mortgage or deed of trust executed as security for the bonds. Neither the state nor the county or any such municipality is liable for the payment of the principal of or interest on a bond or for the performance of any pledge, mortgage, obligation or agreement that may be undertaken by a district. The breach of any pledge, mortgage, obligation or agreement undertaken by a district does not impose pecuniary liability upon the state or the county or any such municipality in the district's jurisdiction or a charge upon its general credit or against its taxing power.

AB892-engrossed,55,21 (3) Bonds issued by the district may be secured only by the district's interest in any football stadium facilities, by income from these facilities, by proceeds of bonds issued by the district and by other amounts placed in a special redemption fund and investment earnings on such amounts, including any taxes imposed by the district under subch. V of ch. 77. The district may not pledge its full faith and credit on the bonds and the bonds are not a general obligation liability of the district.