AB66: Bill Text

LRB-0708/1

RAC&CTS:wlj:rs

2007 - 2008 LEGISLATURE

2007 Assembly BILL 66

February 13, 2007 - Introduced by Representatives Wieckert, Kaufert, Stone, Schneider, Fields, Ballweg, Albers, Jeskewitz, Lothian, Townsend, Gunderson, Petrowski, Mursau and F. Lasee, cosponsored by Senators Risser, Sullivan, Lassa and Roessler. Referred to Committee on Tourism, Recreation and State Properties.

AB66,1,9 An Act to amend 231.01 (4) (a), 231.01 (4) (b) 1., 231.01 (4) (b) 2., 231.01 (4) (c), 231.01 (7) (a) 1., 231.01 (7) (a) 2., 231.01 (7) (a) 4., 231.01 (7) (c), 231.02 (6) (b), 231.03 (5), 231.03 (7), 231.03 (8), 231.03 (11), 231.03 (13), 231.03 (14), 231.03 (15), 231.03 (16), 231.03 (17), 231.03 (18), 231.03 (19), 231.04, 231.05 (1), 231.06, 231.07 (1) (b), 231.07 (2) (a), 231.08 (5), 231.10 (1), 231.12, 231.13 (1) (intro.), 231.13 (2), 231.16 (1), 231.20 and 231.23; and to create 231.01 (4c), 231.01 (5t), 231.03 (6) (h) and 231.03 (6) (i) of the statutes; relating to: authorizing the Wisconsin Health and Educational Facilities Authority to issue bonds 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:

AB66, s. 1 Section 1. 231.01 (4) (a) of the statutes is amended to read:

AB66,2,8 231.01 (4) (a) "Cost" means the sum of all costs incurred by a participating health institution, participating educational institution, participating cultural institution, or participating child care provider, as approved by the authority, as are reasonable and necessary to accomplish the project, exclusive of any private or federal, state, or local financial assistance received by the participating health institution, participating educational institution, participating cultural institution, or participating child care provider for the payment of the project cost.

AB66, s. 2 Section 2. 231.01 (4) (b) 1. of the statutes is amended to read:

AB66,3,3 231.01 (4) (b) 1. The cost incurred by or on behalf of the participating health institution, participating educational institution, participating cultural institution, or participating child care provider of all necessary developmental, planning, and feasibility studies, surveys, plans, and specifications, architectural, engineering, legal, or other special services, the cost of acquisition of land and any buildings and improvements on the land, site preparation, and development including demolition or removal of existing structures, construction, reconstruction, and equipment, including machinery, fixed equipment, and personal property.

AB66, s. 3 Section 3. 231.01 (4) (b) 2. of the statutes is amended to read:

AB66,3,8 231.01 (4) (b) 2. The reasonable cost of financing incurred by a participating health institution, participating educational institution, participating cultural institution, or participating child care provider in the course of the development of the project to the occupancy date.

AB66, s. 4 Section 4. 231.01 (4) (c) of the statutes is amended to read:

AB66,3,17 231.01 (4) (c) All rents and other net revenues from the operation of the real property, improvements, or personal property on the project site by a participating health institution, participating educational institution, participating cultural institution, or participating child care provider on and after the date on which the contract between a participating health institution, participating educational institution, participating cultural institution, or participating child care provider and the authority was entered into, but prior to the occupancy date, shall reduce the sum of all costs in this subsection.

AB66, s. 5 Section 5. 231.01 (4c) of the statutes is created to read:

AB66,3,20 231.01 (4c) "Cultural facility" means an institution, place, building, or agency that satisfies all of the following:

AB66,3,23 (a) Is owned by an entity that is described in section 501 (c) (3) of the Internal Revenue Code and that is exempt from federal income tax under section 501 (a) of the Internal Revenue Code.

AB66,4,2 (b) Is or will be used in whole or in part for the performing or visual arts, including music performance; for the display of art, animals, plants, aquatic life, or other items of cultural interest; or as a library, museum, broadcasting facility, or other facility related to other cultural arts activities; and any related property.

AB66, s. 6 Section 6. 231.01 (5t) of the statutes is created to read:

AB66,4,8 231.01 (5t) "Participating cultural institution" means a corporation, agency, or association that is authorized by state law to provide or operate a cultural facility and that undertakes the financing and construction or acquisition of a project or undertakes the refunding or refinancing of obligations or of a mortgage or of advances as provided in this chapter.

AB66, s. 7 Section 7. 231.01 (7) (a) 1. of the statutes is amended to read:

AB66,4,13 231.01 (7) (a) 1. A specific health facility, educational facility, cultural facility, or child care center work or improvement to be refinanced, acquired, constructed, enlarged, remodeled, renovated, improved, furnished, or equipped by the authority with funds provided in whole or in part under this chapter.

AB66, s. 8 Section 8. 231.01 (7) (a) 2. of the statutes is amended to read:

AB66,4,19 231.01 (7) (a) 2. One or more structures suitable for use as a child care center, cultural facility, health facility, laboratory, laundry, nurses' or interns' residence or other multi-unit housing facility for staff, employees, patients or relatives of patients admitted for treatment or care in a health facility, physician's facility, administration building, research facility, maintenance, storage, or utility facility.

AB66, s. 9 Section 9. 231.01 (7) (a) 4. of the statutes is amended to read:

AB66,4,24 231.01 (7) (a) 4. Any structure useful for the operation of a health facility, educational facility, cultural facility, or child care center, including facilities or supporting service structures essential or convenient for the orderly conduct of the health facility, educational facility, cultural facility, or child care center.

AB66, s. 10 Section 10. 231.01 (7) (c) of the statutes is amended to read:

AB66,5,5 231.01 (7) (c) "Project" may include any combination of projects undertaken jointly by any participating health institution, participating educational institution, participating cultural institution, or participating child care provider with one or more other participating health institutions, participating educational institutions, participating cultural institutions, or participating child care providers.

AB66, s. 11 Section 11. 231.02 (6) (b) of the statutes is amended to read:

AB66,6,7 231.02 (6) (b) Notwithstanding any other provision of law, it is not a conflict of interest or violation of this section or of any other law for a trustee, director, officer, or employee of a participating health institution, participating educational institution, participating cultural institution, or participating child care provider or for a person having the required favorable reputation for skill, knowledge, and experience in state and municipal finance or for a person having the required favorable reputation for skill, knowledge, and experience in the field of health facility, educational facility, cultural facility, or child care center architecture to serve as a member of the authority; if in each case to which par. (a) is applicable, the trustee, director, officer, or employee of the participating health institution, participating educational institution, participating cultural institution, or participating child care provider abstains from discussion, deliberation, action, and vote by the authority in specific respect to any undertaking pursuant to this chapter in which his or her participating health institution, participating educational institution, participating cultural institution, or participating child care provider has an interest, or the person having the required favorable reputation for skill, knowledge, and experience in state and municipal finance abstains from discussion, deliberation, action, and vote by the authority in specific respect to any sale, purchase, or ownership of bonds of the authority in which any business of which such person is a participant, owner, officer, or employee has a past, current, or future interest, or such person having the required favorable reputation for skill, knowledge, and experience in the field of health facility, educational facility, cultural facility, or child care center architecture abstains from discussion, deliberation, action, and vote by the authority in specific respect to construction or acquisition of any project of the authority in which any business of which such person is a participant, owner, officer, or employee has a past, current, or future interest.

AB66, s. 12 Section 12. 231.03 (5) of the statutes is amended to read:

AB66,6,24 231.03 (5) Determine the location and character of any project to be financed under this chapter, and construct, reconstruct, remodel, maintain, enlarge, alter, add to, repair, lease as lessee or lessor and regulate the same, enter into contracts for any such purpose, enter into contracts for the management and operation of a project or other health facilities, educational facilities, cultural facilities, or child care centers owned by the authority, and designate a participating health institution, participating educational institution, participating cultural institution, or participating child care provider as its agent to determine the location and character of a project undertaken by the participating health institution, participating educational institution, participating cultural institution, or participating child care provider under this chapter and as the agent of the authority, to construct, reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease as lessee or lessor and regulate the same, and as the agent of the authority, to enter into contracts for any such purpose, including contracts for the management and operation of such project or other health facilities, educational facilities, cultural facilities, or child care centers owned by the authority.

AB66, s. 13 Section 13. 231.03 (6) (h) of the statutes is created to read:

AB66,7,2 231.03 (6) (h) Finance any project undertaken for a cultural facility by a participating cultural institution.

AB66, s. 14 Section 14. 231.03 (6) (i) of the statutes is created to read:

AB66,7,5 231.03 (6) (i) Refinance outstanding debt of any participating cultural institution.

AB66, s. 15 Section 15. 231.03 (7) of the statutes is amended to read:

AB66,7,13 231.03 (7) Fix and revise from time to time and charge and collect rates, rents, fees, and charges for the use of and for the services furnished or to be furnished by a project or other health facilities, educational facilities, cultural facilities, or child care centers owned by the authority or any portion thereof, contract with any person in respect thereto and coordinate its policies and procedures, and cooperate with recognized health facility, educational facility, cultural facility, or child care center rate setting mechanisms.

AB66, s. 16 Section 16. 231.03 (8) of the statutes is amended to read:

AB66,8,2 231.03 (8) Adopt rules for the use of a project or other health facility, educational facility, cultural facility, or child care center or any portion of the project or facility owned, financed, or refinanced in whole or in part by the authority, including any property used as security for a loan secured through, from, or with the assistance of the authority. The authority may designate a participating health institution, participating educational institution, participating cultural institution, or participating child care provider as its agent to establish rules for the use of a project or other health facilities, educational facilities, cultural facilities, or child care centers undertaken for that participating health institution, participating educational institution, participating cultural institution, or participating child care provider. The rules shall ensure that a project, health facility, educational facility, cultural facility, child care center, or property may not be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship.

AB66, s. 17 Section 17. 231.03 (11) of the statutes is amended to read:

AB66,8,15 231.03 (11) Establish or contract with others to carry out on its behalf a health facility, educational facility, cultural facility, or child care center project cost estimating service, and make this service available on all projects to provide expert cost estimates and guidance to the participating health institution, participating educational institution, participating cultural institution, or participating child care provider and to the authority. To implement this service and, through it, to contribute to cost containment, the authority may require such reasonable reports and documents from health facility, educational facility, cultural facility, or child care center projects as are required for this service and for the development of cost reports and guidelines. The authority shall appoint a technical committee on health facility, educational facility, cultural facility, or child care center project costs and cost containment.

AB66, s. 18 Section 18. 231.03 (13) of the statutes is amended to read:

AB66,9,4 231.03 (13) Make loans to any participating health institution, participating educational institution, participating cultural institution, or, before May 1, 2000, participating child care provider for the cost of a project in accordance with an agreement between the authority and the participating health institution, participating educational institution, participating cultural institution, or participating child care provider. The authority may secure the loan by a mortgage or other security arrangement on the health facility, educational facility, cultural facility, or child care center granted by the participating health institution, participating educational institution, participating cultural institution, or participating child care provider to the authority. The loan may not exceed the total cost of the project as determined by the participating health institution, participating educational institution, participating cultural institution, or participating child care provider and approved by the authority.

AB66, s. 19 Section 19. 231.03 (14) of the statutes is amended to read: