2011 WISCONSIN ACT 71
An Act to repeal 24.61 (3) (c) and 24.61 (3) (d); to renumber and amend 24.66 (1) (intro.), 24.66 (1) (a), 24.66 (1) (b) and 24.66 (1) (c); to amend 24.61 (2) (a) 3., 24.61 (2) (a) 4., 24.61 (2) (b), 24.61 (4) (title), 24.63 (1), (2), (2m) and (2r), 24.66 (3m), 24.66 (5) (a), 24.67 (1) (d), 24.67 (2) (a), 24.67 (3), 24.68, 24.70 (3), 24.70 (4), 24.70 (6), 24.71 (3), 24.71 (4), 24.71 (5), 24.715 (3), 24.715 (4), 24.716 (3), 24.716 (4), 24.717 (3), 24.717 (4) and 121.07 (1) (a); and to create 24.60 (1w), 24.60 (2m), 24.61 (2) (a) 11., 24.61 (4m), 24.63 (2s) and 24.66 (1) (cg) of the statutes; relating to: authorizing the Board of Commissioners of Public Lands to make revenue obligation trust fund loans to certain municipalities, authorizing the Board of Commissioners of Public Lands to make certain investments, application requirements for certain state trust fund loans, persons authorized to execute certificates of indebtedness, and collection procedures for outstanding state trust fund loans.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
71,1
Section
1. 24.60 (1w) of the statutes is created to read:
24.60 (1w) "General obligation trust fund loan" means a state trust fund loan that is the general obligation of the borrower.
71,2
Section
2. 24.60 (2m) of the statutes is created to read:
24.60 (2m) "Revenue obligation trust fund loan" means a state trust fund loan to which any of the following applies:
(a) It is made to a municipality for the purpose of financing or refinancing a project, as defined in s. 67.04 (1) (ar), and is secured by a pledge and assignment of the revenue that the municipality will receive from moneys generated by that project.
(b) It is made to a city or village for the purpose of financing or refinancing project costs, as defined in s. 66.1105 (2) (f), and is secured by a pledge and assignment of the tax increments that will be allocated to the city or village for those project costs by the department of revenue under s. 66.1105 (6).
(c) It is made to a county for the purpose of financing or refinancing project costs, as defined in s. 66.1105 (2) (f), and is secured by a pledge and assignment of the tax increments that will be allocated to the county for those project costs by the department of revenue under s. 59.57 (3).
(d) It is made to a town for the purpose of financing or refinancing project costs, as defined in s. 60.85 (1) (h) 1., and is secured by a pledge and assignment of the tax increments that will be allocated to the town for those project costs by the department of revenue under s. 60.85 (6).
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Section
3. 24.61 (2) (a) 3. of the statutes is amended to read:
24.61 (2) (a) 3. Bonds of, notes, or other instruments of indebtedness issued by this state.
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Section
4. 24.61 (2) (a) 4. of the statutes is amended to read:
24.61 (2) (a) 4. Bonds, notes, or other instruments of indebtedness issued pursuant to law by any town, village, city, county, metropolitan sewerage district, technical college district, or school district of this state.
71,5
Section
5. 24.61 (2) (a) 11. of the statutes is created to read:
24.61 (2) (a) 11. Financial institution accounts that are insured by a deposit insurance corporation, as defined in s. 214.01 (1) (h).
71,6
Section
6. 24.61 (2) (b) of the statutes is amended to read:
24.61 (2) (b) Deposited with secretary of administration Manner for holding securities. All bonds, notes, and other instruments of indebtedness and securities purchased under par. (a) shall be deposited with the secretary of administration held in a manner determined by the board.
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7. 24.61 (3) (c) of the statutes is repealed.
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Section
8. 24.61 (3) (d) of the statutes is repealed.
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Section
9. 24.61 (4) (title) of the statutes is amended to read:
24.61 (4) (title) Loan limitations
to counties.
71,10
Section
10. 24.61 (4m) of the statutes is created to read:
24.61 (4m) Loans to pay off existing indebtedness. If the board makes a loan to a municipality to pay off existing indebtedness, the making of the loan and the payment of the existing indebtedness shall be treated as if they occur simultaneously.
71,11
Section
11. 24.63 (1), (2), (2m) and (2r) of the statutes are amended to read:
24.63 (1) Loans General obligation loans other than to school districts. A state general obligation trust fund loan, other than a loan to a school district, may be made for any term not exceeding 20 years and may be made payable in installments. A state general obligation trust fund loan to a municipality other than a school district shall be in an amount which does not, together with all other indebtedness of the municipality applying for the loan, exceed 5% of the valuation of the taxable property within the municipality as equalized for state purposes. If a state trust fund loan is made to pay off existing indebtedness, it may be advanced to the borrower in installments as fast as the indebtedness or the evidence of indebtedness is canceled.
(2) School General obligation school district loans. A state general obligation trust fund loan to a school district may be made for any time, not exceeding 20 years, as is agreed upon between the school district and the board, and for an amount which, together with all other general obligation indebtedness of that district, does not exceed its allowable indebtedness as determined under s. 67.03 (1).
(2m) Cooperative General obligation cooperative educational service agency loans. A state general obligation trust fund loan to a cooperative educational service agency may be made for any term, not exceeding 20 years, as is agreed upon between the agency and the board, and for a total amount which, for each school district for which the loan is sought, in the proportion determined under s. 24.61 (7), together with all other general obligation indebtedness of the school district, does not exceed the school district's allowable indebtedness under s. 67.03 (1).
(2r) Federated General obligation federated public library system loans. A state general obligation trust fund loan to a federated public library system may be made for any term, not exceeding 20 years, that is agreed upon between the federated public library system and the board and may be made for a total amount that, together with all other general obligation indebtedness of the federated public library system, does not exceed the federated public library system's allowable indebtedness under s. 43.17 (9) (b).
71,12
Section
12. 24.63 (2s) of the statutes is created to read:
24.63 (2s) Revenue obligation loans. (a) A revenue obligation trust fund loan to a city, village, town, or county may be made for any term not exceeding 30 years and may be made payable in installments.
(b) 1. If the board makes a revenue obligation trust fund loan to a city, village, town, or county as described in s. 24.60 (2m) (b) to (d), the loan may not exceed an amount that would require the city, village, town, or county to make annual payments, including principal and interest, of more than 80 percent of the shared revenue payments received by the city, village, town, or county under subch. I of ch. 79 in the year immediately preceding the year in which the loan application is made.
2. The board may allow a city, village, town, or county that pledges and assigns tax increments as security for a revenue obligation trust fund loan to provide that the pledge and assignment is subject to future annual appropriations made by the governing body of the respective city, village, town, or county to repay the loan.
3. The board may prescribe loan conditions in addition to the conditions specified in this paragraph.
71,13
Section
13. 24.66 (1) (intro.) of the statutes is renumbered 24.66 (1) (ag) and amended to read:
24.66 (1) (ag) No trust fund loan may be made unless an application is made to the board under this section. The application shall state the amount of money required, the purpose to which it is to be applied, the times and terms of repayment, whether the loan is sought for an educational technology or distance education project under s. 24.61 (3) (d), and, in the case of a cooperative educational service agency, the names of the school districts participating in the distance education project for which the loan is sought. The
(bg) An application for a general obligation trust fund loan shall be accompanied by satisfactory proof of all of the following:
71,14
Section
14. 24.66 (1) (a) of the statutes is renumbered 24.66 (1) (bg) 1. and amended to read:
24.66 (1) (bg) 1. Of the The valuation of all the taxable property within the municipality as equalized for state purposes;.
71,15
Section
15. 24.66 (1) (b) of the statutes is renumbered 24.66 (1) (bg) 2. and amended to read:
24.66 (1) (bg) 2. Of all All the existing indebtedness of the municipality; and.
71,16
Section
16. 24.66 (1) (c) of the statutes is renumbered 24.66 (1) (bg) 3. and amended to read:
24.66 (1) (bg) 3. Of the The approval of the application as required by subs. (2) to (4).
71,17
Section
17. 24.66 (1) (cg) of the statutes is created to read:
24.66 (1) (cg) An application for a revenue obligation trust fund loan shall be accompanied by all of the following:
1. If the loan is for a project that will be secured in the manner specified in s. 24.60 (2m) (a), a statement of the revenue that the municipality anticipates receiving from moneys generated by that project, and the municipality's pledge and first priority assignment of those revenues to pay off the loan.
2. If the loan is for project costs that will be secured in the manner specified in s. 24.60 (2m) (b) to (d), a statement of the tax increments that the municipality anticipates will be allocated to the municipality for those project costs by the department of revenue and the municipality's pledge and first priority assignment of that allocation to pay off the loan.
3. Satisfactory proof of the amount of annual shared revenue payments made to the municipality under subch. I of ch. 79 in the year immediately preceding the year in which the application for the loan is made.
4. Satisfactory proof of the approval of the application as required by sub. (2).
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Section
18. 24.66 (3m) of the statutes is amended to read:
24.66 (3m) For educational technology or distance education loans. An application by a county, city, village or town to undertake an educational technology or distance education project, or by a consortium that includes a county, city, village or town under s. 24.61 (3) (d) shall be accompanied by a resolution of the county or municipal library board for that county, city, village or town, or the county or municipal library board of each county, city, village or town participating in the consortium, requesting the county, city, village or town to apply for the loan for the purpose of conducting an educational technology or distance education project.
71,19
Section
19. 24.66 (5) (a) of the statutes is amended to read:
24.66 (5) (a) Every application for a general obligation trust fund loan under this section by a municipality shall be accompanied by a certified copy under the hand of the proper clerk of a recorded resolution adopted by the municipality applying for or approving the loan, levying, except as provided in par. (b), upon all the taxable property of the municipality a direct annual tax for the purpose of paying and sufficient to pay the principal and interest on the proposed loan as they become due. In a 1st class city school district, the application shall be accompanied by a certified copy of a resolution, adopted by the board of school directors, stating that it is the intention of the board of school directors to include in its budget transmitted to the common council under s. 119.16 (8) (b) a written notice specifying the amount of money necessary to pay the principal and interest on the loan as they become due. Every application for a general obligation trust fund loan under this subsection by a cooperative educational service agency shall be accompanied by a copy of a recorded resolution adopted by the school board of each school district for which the loan is sought, certified by the school district clerk of that school district, levying upon all taxable property of the school district a direct annual tax for the purpose of paying and sufficient to pay the school district's share of the principal and interest on the proposed loan as they become due. The levy imposed by the municipality shall be void if the board declines to make the loan; otherwise it shall remain valid and irrepealable until the loan and all interest on the loan are fully paid.
71,20
Section
20. 24.67 (1) (d) of the statutes is amended to read:
24.67 (1) (d) For a city, by its mayor or city manager.
71,21
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21. 24.67 (2) (a) of the statutes is amended to read:
24.67 (2) (a) For the county, town, village, or city, by the clerk of that county, town, village, or city.
71,22
Section
22. 24.67 (3) of the statutes is amended to read:
24.67 (3) If a municipality has acted under subs. (1) and (2), it shall certify that fact to the department of administration board. Upon receiving a certification from a municipality, or upon direction of the board if a loan is made to a cooperative educational service agency, drainage district created under ch. 88, local professional baseball park district created under subch. III of ch. 229, or a federated public library system, the secretary of administration board shall draw a warrant for disburse the amount of the loan amount, payable to the treasurer of the municipality, cooperative educational service agency, drainage district, or federated public library system making the loan or as the treasurer of the municipality, cooperative educational service agency, drainage district, local professional baseball park district, or federated public library system directs. The certificate of indebtedness shall then be conclusive evidence of the validity of the indebtedness and that all the requirements of law concerning the application for the making and acceptance of the loan have been complied with.