LRB-0909/1
RAC&CTS:kjf:jf
2005 - 2006 LEGISLATURE
April 12, 2005 - Introduced by Representatives Wieckert, Krawczyk, Kestell,
Hahn, Shilling, Petrowski, Vos, Townsend, Hines, Stone, Jeskewitz,
Pridemore and Lothian, cosponsored by Senators Schultz, Plale, Hansen,
Lassa and Risser. Referred to Joint Committee on Finance.
AB302,1,9
1An Act to amend 231.01 (4) (a), 231.01 (4) (b) 1., 231.01 (4) (b) 2., 231.01 (4) (c),
2231.01 (7) (a) 1., 231.01 (7) (a) 2., 231.01 (7) (a) 4., 231.01 (7) (c), 231.02 (6) (b),
3231.03 (5), 231.03 (7), 231.03 (8), 231.03 (11), 231.03 (13), 231.03 (14), 231.03
4(15), 231.03 (16), 231.03 (17), 231.03 (18), 231.03 (19), 231.04, 231.05 (1),
5231.06, 231.07 (1) (b), 231.07 (2) (a), 231.08 (5), 231.10 (1), 231.12, 231.13 (1)
6(intro.), 231.13 (2), 231.16 (1), 231.20 and 231.23; and
to create 231.01 (4c),
7231.01 (5t), 231.03 (6) (h) and 231.03 (6) (i) of the statutes;
relating to:
8authorizing the Wisconsin Health and Educational Facilities Authority to issue
9bonds to finance projects related to cultural facilities.
Analysis by the Legislative Reference Bureau
Under current law, the Wisconsin Health and Educational Facilities Authority
(WHEFA) may issue bonds to finance certain projects of health or educational
institutions, to refinance outstanding debt of health or educational institutions, and
to finance a purchase of the state's right to receive any of the payments under the
Attorneys General Master Tobacco Settlement Agreement of November 23, 1998.
Projects of health or educational institutions that may be financed include, among
others, the acquisition of a hospital, the construction or operation of an ambulatory
surgery center or home health agency, and the construction, remodeling, furnishing,
or equipping of a health or educational facility or related structure.
This bill authorizes WHEFA to issue bonds to finance any project undertaken
by a cultural institution for a cultural facility, or to refinance outstanding debt of a
cultural institution. A cultural institution is defined in the bill as a corporation,
agency, or association that is authorized by state law to provide or operate a cultural
facility. A cultural facility is defined in the bill as a building, institution, place, or
agency of a nonprofit entity that is or will be used in whole or in part for the
performing or visual arts; for the display of art, animals, plants, or other items of
cultural interest; or as a library, museum, broadcasting facility, or other facility
related to other cultural arts activities. Project activities for which WHEFA may
issue bonds include construction, acquisition, remodeling, furnishing, and equipping
of cultural facilities, related structures, and structures or items that are useful for
the operation of cultural facilities.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB302, s. 1
1Section
1. 231.01 (4) (a) of the statutes is amended to read:
AB302,2,82
231.01
(4) (a) "Cost" means the sum of all costs incurred by a participating
3health institution, participating educational institution
, participating cultural
4institution, or participating child care provider, as approved by the authority, as are
5reasonable and necessary to accomplish the project, exclusive of any private or
6federal, state
, or local financial assistance received by the participating health
7institution, participating educational institution
, participating cultural institution, 8or participating child care provider for the payment of the project cost.
AB302, s. 2
9Section
2. 231.01 (4) (b) 1. of the statutes is amended to read:
AB302,3,310
231.01
(4) (b) 1. The cost incurred by or on behalf of the participating health
11institution, participating educational institution
, participating cultural institution, 12or participating child care provider of all necessary developmental, planning
, and
13feasibility studies, surveys, plans
, and specifications, architectural, engineering,
14legal
, or other special services, the cost of acquisition of land and any buildings and
1improvements on the land, site preparation
, and development including demolition
2or removal of existing structures, construction, reconstruction
, and equipment,
3including machinery, fixed equipment
, and personal property.
AB302, s. 3
4Section
3. 231.01 (4) (b) 2. of the statutes is amended to read:
AB302,3,85
231.01
(4) (b) 2. The reasonable cost of financing incurred by a participating
6health institution, participating educational institution
, participating cultural
7institution, or participating child care provider in the course of the development of
8the project to the occupancy date.
AB302, s. 4
9Section
4. 231.01 (4) (c) of the statutes is amended to read:
AB302,3,1710
231.01
(4) (c) All rents and other net revenues from the operation of the real
11property, improvements
, or personal property on the project site by a participating
12health institution, participating educational institution
, participating cultural
13institution, or participating child care provider on and after the date on which the
14contract between a participating health institution, participating educational
15institution
, participating cultural institution, or participating child care provider
16and the authority was entered into, but prior to the occupancy date, shall reduce the
17sum of all costs in this subsection.
AB302, s. 5
18Section
5. 231.01 (4c) of the statutes is created to read:
AB302,3,2019
231.01
(4c) "Cultural facility" means an institution, place, building, or agency
20that satisfies all of the following:
AB302,3,2321(a) Is owned by an entity that is described in section
501 (c) (3) of the Internal
22Revenue Code and that is exempt from federal income tax under section
501 (a) of
23the Internal Revenue Code.
AB302,4,224
(b) Is or will be used in whole or in part for the performing or visual arts,
25including music performance; for the display of art, animals, plants, aquatic life, or
1other items of cultural interest; or as a library, museum, broadcasting facility, or
2other facility related to other cultural arts activities; and any related property.
AB302, s. 6
3Section
6. 231.01 (5t) of the statutes is created to read:
AB302,4,84
231.01
(5t) "Participating cultural institution" means a corporation, agency, or
5association that is authorized by state law to provide or operate a cultural facility and
6that undertakes the financing and construction or acquisition of a project or
7undertakes the refunding or refinancing of obligations or of a mortgage or of
8advances as provided in this chapter.
AB302, s. 7
9Section
7. 231.01 (7) (a) 1. of the statutes is amended to read:
AB302,4,1310
231.01
(7) (a) 1. A specific health facility, educational facility
, cultural facility, 11or child care center work or improvement to be refinanced, acquired, constructed,
12enlarged, remodeled, renovated, improved, furnished
, or equipped by the authority
13with funds provided in whole or in part under this chapter.
AB302, s. 8
14Section
8. 231.01 (7) (a) 2. of the statutes is amended to read:
AB302,4,1915
231.01
(7) (a) 2. One or more structures suitable for use as a child care center,
16cultural facility, health facility, laboratory, laundry, nurses' or interns' residence or
17other multi-unit housing facility for staff, employees, patients or relatives of
18patients admitted for treatment or care in a health facility, physician's facility,
19administration building, research facility, maintenance, storage
, or utility facility.
AB302, s. 9
20Section
9. 231.01 (7) (a) 4. of the statutes is amended to read:
AB302,4,2421
231.01
(7) (a) 4. Any structure useful for the operation of a health facility,
22educational facility
, cultural facility, or child care center, including facilities or
23supporting service structures essential or convenient for the orderly conduct of the
24health facility, educational facility
, cultural facility, or child care center.
AB302, s. 10
25Section
10. 231.01 (7) (c) of the statutes is amended to read:
AB302,5,5
1231.01
(7) (c) "Project" may include any combination of projects undertaken
2jointly by any participating health institution, participating educational institution
,
3participating cultural institution, or participating child care provider with one or
4more other participating health institutions, participating educational institutions
,
5participating cultural institutions, or participating child care providers.
AB302, s. 11
6Section
11. 231.02 (6) (b) of the statutes is amended to read:
AB302,6,77
231.02
(6) (b) Notwithstanding any other provision of law, it is not a conflict
8of interest or violation of this section or of any other law for a trustee, director, officer
, 9or employee of a participating health institution, participating educational
10institution
, participating cultural institution, or participating child care provider or
11for a person having the required favorable reputation for skill, knowledge
, and
12experience in state and municipal finance or for a person having the required
13favorable reputation for skill, knowledge
, and experience in the field of health
14facility, educational facility
, cultural facility, or child care center architecture to serve
15as a member of the authority; if in each case to which par. (a) is applicable, the
16trustee, director, officer
, or employee of the participating health institution,
17participating educational institution
, participating cultural institution, or
18participating child care provider abstains from discussion, deliberation, action
, and
19vote by the authority in specific respect to any undertaking pursuant to this chapter
20in which his or her participating health institution, participating educational
21institution
, participating cultural institution, or participating child care provider
22has an interest, or the person having the required favorable reputation for skill,
23knowledge
, and experience in state and municipal finance abstains from discussion,
24deliberation, action
, and vote by the authority in specific respect to any sale,
25purchase
, or ownership of bonds of the authority in which any business of which such
1person is a participant, owner, officer
, or employee has a past, current
, or future
2interest, or such person having the required favorable reputation for skill,
3knowledge
, and experience in the field of health facility, educational facility
, cultural
4facility, or child care center architecture abstains from discussion, deliberation,
5action
, and vote by the authority in specific respect to construction or acquisition of
6any project of the authority in which any business of which such person is a
7participant, owner, officer
, or employee has a past, current
, or future interest.
AB302, s. 12
8Section
12. 231.03 (5) of the statutes is amended to read:
AB302,6,249
231.03
(5) Determine the location and character of any project to be financed
10under this chapter, and construct, reconstruct, remodel, maintain, enlarge, alter, add
11to, repair, lease as lessee or lessor and regulate the same, enter into contracts for any
12such purpose, enter into contracts for the management and operation of a project or
13other health facilities, educational facilities
, cultural facilities, or child care centers
14owned by the authority, and designate a participating health institution,
15participating educational institution
, participating cultural institution, or
16participating child care provider as its agent to determine the location and character
17of a project undertaken by the participating health institution, participating
18educational institution
, participating cultural institution, or participating child care
19provider under this chapter and as the agent of the authority, to construct,
20reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease
21as lessee or lessor and regulate the same, and as the agent of the authority, to enter
22into contracts for any such purpose, including contracts for the management and
23operation of such project or other health facilities, educational facilities
, cultural
24facilities, or child care centers owned by the authority.
AB302, s. 13
25Section
13. 231.03 (6) (h) of the statutes is created to read:
AB302,7,2
1231.03
(6) (h) Finance any project undertaken for a cultural facility by a
2participating cultural institution.
AB302, s. 14
3Section
14. 231.03 (6) (i) of the statutes is created to read:
AB302,7,54
231.03
(6) (i) Refinance outstanding debt of any participating cultural
5institution.
AB302, s. 15
6Section
15. 231.03 (7) of the statutes is amended to read:
AB302,7,137
231.03
(7) Fix and revise from time to time and charge and collect rates, rents,
8fees
, and charges for the use of and for the services furnished or to be furnished by
9a project or other health facilities, educational facilities
, cultural facilities, or child
10care centers owned by the authority or any portion thereof, contract with any person
11in respect thereto and coordinate its policies and procedures
, and cooperate with
12recognized health facility, educational facility
, cultural facility, or child care center
13rate setting mechanisms.
AB302, s. 16
14Section
16. 231.03 (8) of the statutes is amended to read:
AB302,8,215
231.03
(8) Adopt rules for the use of a project or other health facility,
16educational facility
, cultural facility, or child care center or any portion of the project
17or facility owned, financed
, or refinanced in whole or in part by the authority,
18including any property used as security for a loan secured through, from
, or with the
19assistance of the authority. The authority may designate a participating health
20institution, participating educational institution
, participating cultural institution, 21or participating child care provider as its agent to establish rules for the use of a
22project or other health facilities, educational facilities
, cultural facilities, or child
23care centers undertaken for that participating health institution, participating
24educational institution
, participating cultural institution, or participating child care
25provider. The rules shall ensure that a project, health facility, educational facility,
1cultural facility, child care center
, or property may not be used primarily for sectarian
2instruction or study or as a place for devotional activities or religious worship.
AB302, s. 17
3Section
17. 231.03 (11) of the statutes is amended to read:
AB302,8,154
231.03
(11) Establish or contract with others to carry out on its behalf a health
5facility, educational facility
, cultural facility, or child care center project cost
6estimating service, and make this service available on all projects to provide expert
7cost estimates and guidance to the participating health institution, participating
8educational institution
, participating cultural institution, or participating child care
9provider and to the authority. To implement this service and, through it, to
10contribute to cost containment, the authority may require such reasonable reports
11and documents from health facility, educational facility
, cultural facility, or child care
12center projects as are required for this service and for the development of cost reports
13and guidelines. The authority shall appoint a technical committee on health facility,
14educational facility
, cultural facility, or child care center project costs and cost
15containment.
AB302, s. 18
16Section
18. 231.03 (13) of the statutes is amended to read:
AB302,9,417
231.03
(13) Make loans to any participating health institution, participating
18educational institution
, participating cultural institution, or, before May 1, 2000,
19participating child care provider for the cost of a project in accordance with an
20agreement between the authority and the participating health institution,
21participating educational institution
, participating cultural institution, or
22participating child care provider. The authority may secure the loan by a mortgage
23or other security arrangement on the health facility, educational facility
, cultural
24facility, or child care center granted by the participating health institution,
25participating educational institution
, participating cultural institution, or
1participating child care provider to the authority. The loan may not exceed the total
2cost of the project as determined by the participating health institution,
3participating educational institution
, participating cultural institution, or
4participating child care provider and approved by the authority.
AB302, s. 19
5Section
19. 231.03 (14) of the statutes is amended to read:
AB302,9,146
231.03
(14) Make loans to a health facility, educational facility
, cultural facility, 7or, before May 1, 2000, child care center for which bonds may be issued under sub.
8(6) (b) or (d) or under s. 231.03 (6) (f), 1999 stats., to refinance the health facility's,
9educational facility's,
cultural facility's, or child care center's outstanding debt. The
10authority may secure the loan or bond by a mortgage or other security arrangement
11on the health facility, educational facility,
cultural facility, or child care center
12granted by the participating health institution, participating educational
13institution,
participating cultural institution, or participating child care provider to
14the authority.
AB302, s. 20
15Section
20. 231.03 (15) of the statutes is amended to read:
AB302,9,2316
231.03
(15) Mortgage all or any portion of a project and other health facilities,
17educational facilities
, cultural facilities, or child care centers and the site thereof,
18whether owned or thereafter acquired, for the benefit of the holders of bonds issued
19to finance the project, health facilities, educational facilities
, cultural facilities, or
20child care centers or any portion thereof or issued to refund or refinance outstanding
21indebtedness of participating health institutions, educational institutions
,
22participating cultural institutions, or child care providers as permitted by this
23chapter.