Amendment CSA1-SB40

SB40-CSA1,69,25 18.08 (2) The capital improvement fund may be expended, pursuant to appropriations, only for the purposes and in the amounts for which the public debts have been contracted, for the payment of principal and interest on loans or on notes, for the payment due, if any, under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a) with respect to any such public debt, for the purposes identified under s. 20.867 (2) (v) and (4) (q), and for expenses incurred in contracting public debt.

SB40-CSA1, s. 148 Section 148. 18.08 (4) of the statutes is amended to read:

SB40-CSA1,70,10 18.08 (4) If at any time it appears that there will not be on hand in the capital improvement fund sufficient moneys for the payment of principal and interest on loans or on notes or for the payment due, if any, under an agreement or ancillary arrangement that has been entered into under s. 18.06 (8) (a) with respect to any public debt and that has been determined to be payable from the capital improvement fund under s. 18.06 (8) (a) 2., the department of administration shall transfer to such fund, out of the appropriation made pursuant to s. 20.866, a sum sufficient which, together with any available money on hand in such fund, is sufficient to make such payment.

SB40-CSA1, s. 149 Section 149. 18.09 (2) of the statutes is amended to read:

SB40-CSA1,70,18 18.09 (2) Each sinking 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 bonds giving rise to it and, premium, if any, due upon refunding redemption of any such bonds, and payment due, if any, under an agreement or ancillary arrangement that has been entered into under s. 18.06 (8) (a) with respect to any such bonds and that has been determined to be payable from the bond security and redemption fund under s. 18.06 (8) (a) 2.

SB40-CSA1, s. 150m Section 150m. 18.52 (1c) of the statutes is created to read:

SB40-CSA1,70,21 18.52 (1c) "Aggregate expected debt service and net exchange payments" means the sum of the following:

SB40-CSA1,70,23 (a) The aggregate net payments expected to be made and received under a specified interest exchange agreement under s. 18.55 (6) (a).

SB40-CSA1,70,25 (b) The aggregate debt service expected to be made on obligations related to that agreement.

SB40-CSA1,71,3 (c) The aggregate net payments expected to be made and received under all other interest exchange agreements under s. 18.55 (6) (a) relating to those obligations that are in force at the time of executing the agreement.

SB40-CSA1, s. 151 Section 151. 18.55 (6) (a) of the statutes is amended to read:

SB40-CSA1,71,16 18.55 (6) (a) At Subject to pars. (d) and (e), at the time of, or in anticipation of, contracting revenue obligations and at any time thereafter while the revenue obligations are outstanding, the commission may enter into agreements and ancillary arrangements relating to the revenue obligations, including trust indentures, liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. Any payment made or received pursuant to any such agreements or ancillary arrangements shall be made from or deposited into a fund relating to the relevant revenue obligation, as determined by the commission. The determination of the commission included in an interest exchange agreement that such an agreement relates to a revenue obligation shall be conclusive.

SB40-CSA1, s. 151c Section 151c. 18.55 (6) (d) of the statutes is created to read:

SB40-CSA1,71,19 18.55 (6) (d) With respect to any interest exchange agreement or agreements specified in par. (a), all of the following shall apply:

SB40-CSA1,71,22 1. The commission shall contract with an independent financial consulting firm to determine if the terms and conditions of the agreement reflect a fair market value, as of the proposed date of the execution of the agreement.

SB40-CSA1,72,2 2. The interest exchange agreement must identify by maturity, bond issue, or bond purpose the obligation to which the agreement is related. The determination of the commission included in an interest exchange agreement that such agreement relates to an obligation shall be conclusive.

SB40-CSA1,72,7 3. The resolution authorizing the commission to enter into any interest exchange agreement shall require that the terms and conditions of the agreement reflect a fair market value as of the date of execution of the agreement, as reflected by the determination of the independent financial consulting firm under subd. 1., and shall establish guidelines for any such agreement, including the following:

SB40-CSA1,72,8 a. The conditions under which the commission may enter into the agreements.

SB40-CSA1,72,9 b. The form and content of the agreements.

SB40-CSA1,72,10 c. The aspects of risk exposure associated with the agreements.

SB40-CSA1,72,11 d. The standards and procedures for counterparty selection.

SB40-CSA1,72,13 e. The standards for the procurement of, and the setting aside of reserves, if any, in connection with, the agreements.

SB40-CSA1,72,15 f. The provisions, if any, for collateralization or other requirements for securing any counterparty's obligations under the agreements.

SB40-CSA1,72,17 g. A system for financial monitoring and periodic assessment of the agreements.

SB40-CSA1, s. 151h Section 151h. 18.55 (6) (e) of the statutes is created to read:

SB40-CSA1,72,21 18.55 (6) (e) 1. Subject to subd. 2., the terms and conditions of an interest exchange agreement under par. (a) shall not be structured so that, as of the trade date of the agreement, both of the following are reasonably expected to occur:

SB40-CSA1,73,2 a. The aggregate expected debt service and net exchange payments relating to the agreement during the fiscal year in which the trade date occurs will be less than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable during that fiscal year if the agreement is not executed.

SB40-CSA1,73,6 b. The aggregate expected debt service and net exchange payments relating to the agreement in subsequent fiscal years will be greater than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable in those fiscal years if the agreement is not executed.

SB40-CSA1,73,7 2. Subdivision 1. shall not apply if either of the follow occurs:

SB40-CSA1,73,11 a. The commission receives a determination by the independent financial consulting firm under par. (d) 1. that the terms and conditions of the agreement reflect payments by the state that represent on-market rates as of the trade date for the particular type of agreement.

SB40-CSA1,73,16 b. The commission provides written notice to the joint committee on finance of its intention to enter into an agreement that is reasonably expected to satisfy subd. 1., and the joint committee on finance either approves or disapproves, in writing, the commission's entering into the agreement within 14 days of receiving the written notice from the commission.

SB40-CSA1,73,19 3. This paragraph shall not limit the liability of the state under an agreement if actual contracted net exchange payments in any fiscal year are less than or exceed original expectations.

SB40-CSA1, s. 151p Section 151p. 18.55 (6) (f) of the statutes is created to read:

SB40-CSA1,73,24 18.55 (6) (f) Semiannually, during any year in which the state is a party to an agreement entered into pursuant to par. (a), the department of administration shall submit a report to the commission and to the cochairpersons of the joint committee on finance listing all such agreements. The report shall include all of the following:

SB40-CSA1,74,2 1. A description of each agreement, including a summary of its terms and conditions, rates, maturity, and the estimated market value of each agreement.

SB40-CSA1,74,4 2. An accounting of amounts that were required to be paid and received on each agreement.

SB40-CSA1,74,6 3. Any credit enhancement, liquidity facility, or reserves, including an accounting of the costs and expenses incurred by the state.

SB40-CSA1,74,7 4. A description of the counterparty to each agreement.

SB40-CSA1,74,9 5. A description of the counterparty risk, the termination risk, and other risks associated with each agreement.

SB40-CSA1, s. 151s Section 151s. 18.71 (1) of the statutes is renumbered 18.71 (1m).

SB40-CSA1, s. 151v Section 151v. 18.71 (1d) of the statutes is created to read:

SB40-CSA1,74,13 18.71 (1d) "Aggregate expected debt service and net exchange payments" means the sum of the following:

SB40-CSA1,74,15 (a) The aggregate net payments expected to be made and received under a specified interest exchange agreement under s. 18.73 (5) (a).

SB40-CSA1,74,17 (b) The aggregate debt service expected to be made on notes related to that agreement.

SB40-CSA1,74,20 (c) The aggregate net payments expected to be made and received under all other interest exchange agreements under s. 18.73 (5) (a) relating to those notes that are in force at the time of executing the agreement.

SB40-CSA1, s. 152 Section 152. 18.73 (5) of the statutes is created to read:

SB40-CSA1,75,9 18.73 (5) Agreements and arrangements; delegation; use of operating notes. (a) Subject to pars. (d) and (e), at the time of, or in anticipation of, contracting operating notes and at any time thereafter while the operating notes are outstanding, the commission may enter into agreements and ancillary arrangements relating to the operating notes, including liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. Any payment received pursuant to any such agreements or ancillary arrangements shall be deposited in, and any payments made pursuant to any such agreements or ancillary arrangements will be made from, the general fund or the operating note redemption fund, as determined by the commission. The determination of the commission included in an interest exchange agreement that such an agreement relates to an operating note shall be conclusive.

SB40-CSA1,75,12 (b) The commission may delegate to other persons the authority and responsibility to take actions necessary and appropriate to implement agreements and ancillary arrangements under par. (a).

SB40-CSA1,75,14 (c) Any operating notes may include operating notes contracted to fund interest, accrued or to accrue, on the operating notes.

SB40-CSA1,75,16 (d) With respect to any interest exchange agreement or agreements specified in par. (a), all of the following shall apply:

SB40-CSA1,75,19 1. The commission shall contract with an independent financial consulting firm to determine if the terms and conditions of the agreement reflect a fair market value, as of the proposed date of the execution of the agreement.

SB40-CSA1,75,22 2. The interest exchange agreement must identify the note to which the agreement is related. The determination of the commission included in an interest exchange agreement that such agreement relates to a note shall be conclusive.

SB40-CSA1,76,2 3. The resolution authorizing the commission to enter into any interest exchange agreement shall require that the terms and conditions of the agreement reflect a fair market value as of the date of execution of the agreement, as reflected by the determination of the independent financial consulting firm under subd. 1., and shall establish guidelines for any such agreement, including the following:

SB40-CSA1,76,3 a. The conditions under which the commission may enter into the agreements.

SB40-CSA1,76,4 b. The form and content of the agreements.

SB40-CSA1,76,5 c. The aspects of risk exposure associated with the agreements.

SB40-CSA1,76,6 d. The standards and procedures for counterparty selection.

SB40-CSA1,76,8 e. The standards for the procurement of, and the setting aside of reserves, if any, in connection with, the agreements.

SB40-CSA1,76,10 f. The provisions, if any, for collateralization or other requirements for securing any counterparty's obligations under the agreements.

SB40-CSA1,76,12 g. A system for financial monitoring and periodic assessment of the agreements.

SB40-CSA1,76,19 (e) 1. Subject to subd. 2., the terms and conditions of an interest exchange agreement under par. (a) shall not be structured so that, as of the trade date of the agreement, the aggregate expected debt service and net exchange payments relating to the agreement during the fiscal year in which the trade date occurs will be less than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable during that fiscal year if the agreement is not executed.

SB40-CSA1,76,20 2. Subdivision 1. shall not apply if either of the follow occurs:

SB40-CSA1,76,24 a. The commission receives a determination by the independent financial consulting firm under par. (d) 1. that the terms and conditions of the agreement reflect payments by the state that represent on-market rates as of the trade date for the particular type of agreement.

SB40-CSA1,77,5 b. The commission provides written notice to the joint committee on finance of its intention to enter into an agreement that is reasonably expected to satisfy subd. 1., and the joint committee on finance either approves or disapproves, in writing, the commission's entering into the agreement within 14 days of receiving the written notice from the commission.

SB40-CSA1,77,8 3. This paragraph shall not limit the liability of the state under an agreement if actual contracted net exchange payments in any fiscal year are less than or exceed original expectations.

SB40-CSA1,77,12 (f) Semiannually, during any year in which the state is a party to an agreement entered into pursuant to par. (a), the department of administration shall submit a report to the commission and to the cochairpersons of the joint committee on finance listing all such agreements. The report shall include all of the following:

SB40-CSA1,77,14 1. A description of each agreement, including a summary of its terms and conditions, rates, maturity, and the estimated market value of each agreement.

SB40-CSA1,77,16 2. An accounting of amounts that were required to be paid and received on each agreement.

SB40-CSA1,77,18 3. Any credit enhancement, liquidity facility, or reserves, including an accounting of the costs and expenses incurred by the state.

SB40-CSA1,77,19 4. A description of the counterparty to each agreement.

SB40-CSA1,77,21 5. A description of the counterparty risk, the termination risk, and other risks associated with each agreement.

SB40-CSA1, s. 153 Section 153. 18.74 of the statutes is amended to read:

SB40-CSA1,78,4 18.74 Application of operating note proceeds. All moneys resulting from the contracting of operating notes or any payment to be received under an agreement or ancillary arrangement entered into under s. 18.73 (5) with respect to any such operating notes shall be credited to the general fund, except that moneys which represent premium and accrued interest on operating notes, or moneys for purposes of funding or refunding operating notes pursuant to s. 18.72 (1) shall be credited to the operating note redemption fund.

SB40-CSA1, s. 154 Section 154. 18.75 (2) of the statutes is amended to read:

SB40-CSA1,78,11 18.75 (2) The operating note 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 operating notes giving rise to it and premium, if any, due upon refunding or early redemption of such operating notes, and for the payment due, if any, under an agreement or ancillary arrangement entered into under s. 18.73 (5) with respect to such operating notes.

SB40-CSA1, s. 155 Section 155. 18.75 (4) of the statutes is amended to read:

SB40-CSA1,79,2 18.75 (4) There shall be transferred, under s. 20.855 (1) (a), a sum sufficient for the payment of the principal, interest and premium due, if any, on the and for the payment due, if any, under an agreement or ancillary arrangement entered into pursuant to s. 18.73 (5) with respect to operating notes giving rise to it as the same falls due. Such transfers shall be so timed that there is at all times on hand in the fund an amount not less than the amount to be paid out of it during the ensuing 30 days or such other period if so provided for in the authorizing resolution. The commission may pledge the deposit of additional amounts at periodic intervals and the secretary of the department may impound moneys of the general fund, including moneys temporarily reallocated from other funds under s. 20.002 (11), in accordance with the pledge of revenues in the authorizing resolution, and all such impoundments are deemed to be payments for purposes of s. 16.53 (10), but no such impoundment may be made until the amounts to be paid into the bond security and redemption fund under s. 18.09 during the ensuing 30 days have been deposited in the bond security and redemption fund.

SB40-CSA1, s. 156 Section 156. 19.32 (1) of the statutes is amended to read:

SB40-CSA1,79,14 19.32 (1) "Authority" means any of the following having custody of a record: a state or local office, elected official, agency, board, commission, committee, council, department or public body corporate and politic created by constitution, law, ordinance, rule or order; a governmental or quasi-governmental corporation except for the Bradley center sports and entertainment corporation; a local exposition district under subch. II of ch. 229; a family long-term care district under s. 46.2895; any court of law; the assembly or senate; a nonprofit corporation which receives more than 50% of its funds from a county or a municipality, as defined in s. 59.001 (3), and which provides services related to public health or safety to the county or municipality; a nonprofit corporation operating the Olympic ice training center under s. 42.11 (3); or a formally constituted subunit of any of the foregoing.

SB40-CSA1, s. 157 Section 157. 19.42 (10) (p) of the statutes is repealed.

SB40-CSA1, s. 158e Section 158e. 19.42 (10) (r) of the statutes is created to read:

SB40-CSA1,79,18 19.42 (10) (r) The employees and members of the board of directors of the Lower Fox River Remediation Authority.

SB40-CSA1, s. 159 Section 159. 19.42 (13) (o) of the statutes is repealed.

SB40-CSA1, s. 161 Section 161. 19.55 (2) (b) of the statutes is amended to read:

SB40-CSA1,80,5 19.55 (2) (b) Records obtained or prepared by the board in connection with an investigation, except that the board shall permit inspection of records that are made public in the course of a hearing by the board to determine if a violation of this subchapter or subch. III of ch. 13 has occurred. Whenever the board refers such investigation and hearing records to a district attorney or to the attorney general, they may be made public in the course of a prosecution initiated under this subchapter. The board shall also provide information from investigation and hearing records that pertains to the location of individuals and assets of individuals as requested under s. 49.22 (2m) by the department of workforce development children and families or by a county child support agency under s. 59.53 (5).

SB40-CSA1, s. 162 Section 162. 19.55 (2) (d) of the statutes is amended to read:

SB40-CSA1,80,11 19.55 (2) (d) Records of the social security number of any individual who files an application for licensure as a lobbyist under s. 13.63 or who registers as a principal under s. 13.64, except to the department of workforce development children and families for purposes of administration of s. 49.22 or to the department of revenue for purposes of administration of s. 73.0301.

SB40-CSA1, s. 162h Section 162h. 19.62 (8) of the statutes is amended to read:

SB40-CSA1,80,18 19.62 (8) "State authority" means an authority that is a state elected official, agency, board, commission, committee, council, department or public body corporate and politic created by constitution, statute, rule or order; a state governmental or quasi-governmental corporation; the supreme court or court of appeals; or the assembly or senate; or a nonprofit corporation operating the Olympic Ice Training Center under s. 42.11 (3).