18.62(3)
(3) Personal representatives, guardians, trustees, and other fiduciaries.
18.62 History
History: 1977 c. 29;
2001 a. 102.
18.63
18.63
Validation of revenue obligations. 18.63(1)
(1) Notwithstanding any defects, irregularities, lack of power or failure to comply with any statute or any act of the commission, all revenue obligations issued or attempted to be issued after July 1, 1977 are declared to be valid; all instruments given after July 1, 1977 to evidence the obligation are declared to be binding, legal, valid, enforceable and incontestable in accordance with their terms; and all proceedings taken and certifications and determinations made after July 1, 1977 to authorize, issue, sell, execute, deliver or enter into the obligation or instruments are validated, ratified, approved and confirmed.
18.63(2)
(2) A determination, legislative, judicial or administrative, for any reason, that the state may not spend the proceeds of revenue obligations or that it has spent the proceeds for a purpose other than the stated purpose for which the revenue obligations were issued or for a purpose for which the state may not spend money, shall not affect the validity of the revenue obligations nor the evidence of revenue obligation therefor.
18.63 History
History: 1977 c. 29.
18.64
18.64
Minority financial advisers and investment firms; disabled veteran-owned financial advisers and investment firms. 18.64(1)(a)
(a) “Disabled veteran-owned financial adviser" means a financial adviser certified by the department of administration under
s. 16.283 (3).
18.64(1)(b)
(b) “Disabled veteran-owned investment firm" means an investment firm certified by the department of administration under
s. 16.283 (3).
18.64(1)(c)
(c) “Minority financial adviser" means a financial adviser certified by the department of administration under
s. 16.287 (2).
18.64(1)(d)
(d) “Minority investment firm" means an investment firm certified by the department of administration under
s. 16.287 (2).
18.64(2)(a)(a) Except as provided under
sub. (7), in issuing evidences of revenue obligations by competitive sale, the commission shall ensure that at least 6 percent of the total of revenue obligations contracted in each fiscal year is underwritten by minority investment firms.
18.64(2)(b)
(b) Except as provided under
sub. (7), in issuing evidences of revenue obligations by competitive sale, the commission shall make efforts to ensure that at least 1 percent of the total of revenue obligations contracted in each fiscal year is underwritten by disabled veteran-owned investment firms.
18.64(3)(a)(a) Except as provided under
sub. (7), in issuing evidences of revenue obligations by negotiated sale, the commission shall ensure that at least 6 percent of the total of revenue obligations contracted in each fiscal year is underwritten by minority investment firms.
18.64(3)(b)
(b) Except as provided under
sub. (7), in issuing evidences of revenue obligations by negotiated sale, the commission shall make efforts to ensure that at least 1 percent of the total of revenue obligations contracted in each fiscal year is underwritten by disabled veteran-owned investment firms.
18.64(4)(a)(a) Except as provided under
sub. (7), in issuing evidences of revenue obligations by competitive sale or negotiated sale, the commission shall ensure that at least 6 percent of the total moneys expended in such fiscal year for the services of financial advisers are expended for the services of minority financial advisers.
18.64(4)(b)
(b) Except as provided under
sub. (7), in issuing evidences of revenue obligations by competitive sale or negotiated sale, the commission shall make efforts to ensure that at least 1 percent of the total moneys expended in each fiscal year for the services of financial advisers are expended for the services of disabled veteran-owned financial advisers.
18.64(5)(a)(a) Except as provided under
sub. (7), an individual underwriter or syndicate of underwriters shall ensure that each bid or proposal, submitted by that individual or syndicate in a competitive or negotiated sale of a revenue obligation, provides for a portion of sales to minority investment firms.
18.64(5)(b)
(b) Except as provided under
sub. (7), an individual underwriter or syndicate of underwriters shall make efforts to ensure that each bid or proposal, submitted by that individual or syndicate in a competitive or negotiated sale of a revenue obligation, provides for at least 1 percent of sales to disabled veteran-owned investment firms.
18.64(6)
(6) The commission shall annually report to the department of administration the total amount of revenue obligations contracted with the underwriting services of minority investment firms and disabled veteran-owned investment firms and the total amount of moneys expended for the services of minority financial advisers and disabled veteran-owned financial advisers during the preceding fiscal year.
18.64(7)
(7) The requirements of any of
subs. (2) to
(5) do not apply to an issuance of evidence of a revenue obligation, if the secretary of administration submits a report in writing specifying the building commission's reasons for not complying with the requirements of any of
subs. (2) to
(5) for that issuance.
OPERATING NOTES
18.70
18.70
Provisions applicable. The following sections apply to this subchapter, except that all references to “public debt," “debt," or “revenue obligation" are deemed to refer to “operating notes," all references to “evidence of indebtedness" are deemed to refer to “evidence of operating note," and all references to “evidences of indebtedness" are deemed to refer to “evidences of operating notes":
ss. 18.03,
18.06 (8),
18.07,
18.10 (1),
(2),
(4) to
(9), and
(11),
18.17,
18.52 (1m),
18.61 (1),
18.62, and
18.63.
18.71
18.71
Definitions. In this subchapter, unless the context requires otherwise:
18.71(1d)
(1d) “Aggregate expected debt service and net exchange payments" means the sum of the following:
18.71(1d)(a)
(a) The aggregate net payments expected to be made and received under a specified interest exchange agreement under
s. 18.73 (5) (a).
18.71(1d)(b)
(b) The aggregate debt service expected to be made on notes related to that agreement.
18.71(1d)(c)
(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.
18.71(1m)
(1m) “Commission" means the building commission.
18.71(2)
(2) “Department" means the department of administration.
18.71(3)
(3) “Evidence of operating note" means a written promise to pay an operating note.
18.71(4)
(4) “Operating note" means every undertaking of the state to repay a certain amount of a financial obligation which is:
18.71(4)(a)
(a) Created for the purpose of funding operating deficits of the state as determined under
s. 16.405 (1), which must be repaid not later than the last day of the fiscal year during which the operating note is issued;
18.71(4)(b)
(b) Payable from and secured solely by revenues pledged by the commission and the department pursuant to the authorizing resolution provided that all such pledged revenues must first be available for the payment of public debt; and
18.71 Annotation
Operating notes that are short-term borrowings to be repaid in the current year from tax collections that are in the process of collection, are not public debt under Art. XI, s. 3. State ex rel. La Follette v. Stitt,
114 Wis. 2d 358,
338 N.W.2d 684 (1983).
18.72
18.72
Purposes of operating notes. 18.72(1)
(1) The commission may authorize financial obligations to be incurred and evidences of operating notes to be issued therefor in an amount sufficient to fund or refund the whole or any part of any operating note issued under this subchapter. However, no operating notes originally issued in a fiscal year may be funded or refunded by proceeds of an operating note to mature in a later fiscal year.
18.72(2)
(2) The commission may authorize financial obligations to be incurred and evidences of operating notes to be issued therefor to fund operating deficits as moneys are required. The requirements for moneys shall be established by the department.
18.72(3)
(3) Each purpose specified in
subs. (1) and
(2) may include the expenses of issuance of the operating notes and reserves securing the operating notes.
18.72(4)
(4) No operating note issued under this section may have a maturity date later than the last day of the fiscal year during which the operating note is issued.
18.72 History
History: 1983 a. 3;
1985 a. 29.
18.725
18.725
Limit on amount of operating notes. The building commission may not sell operating notes under
s. 18.73 (2) at any time if the amount of operating notes to be sold at that time plus the amount of operating notes outstanding at that time exceed 10 percent of the amounts shown in the schedule under
s. 20.005 (3) of appropriations of general purpose revenues, as defined in
s. 20.001 (2) (a), plus the amounts shown in the schedule of appropriations of program revenues, as defined in
s. 20.001 (2) (b), both calculated as of that time and for that fiscal year.
18.725 History
History: 1985 a. 29.
18.73(1)(1)
Authorizing resolution. No financial obligations may be incurred under this subchapter nor may any evidence of operating notes be issued by the state except upon submission of a request by the department under
s. 16.405 and pursuant to an authorizing resolution of the commission. Each authorizing resolution shall state each purpose of the operating notes it authorizes, which need not be more specific but may not be more general than those purposes provided in or pursuant to law, and the maximum principal amount of the operating notes. The operating notes may be designated by any name as determined by the commission.
18.73(2)
(2) Sale. Operating notes may be sold at either public or private sale. The commission may provide in an authorizing resolution for the refunding of operating notes, for their exchange privately, in payment and discharge of any of the outstanding operating notes being refunded. All operating notes sold at public sale shall be noticed as provided in the authorizing resolution. Any bids received at public sale may be rejected.
18.73(4)
(4) Exercise of authority. Financial obligations may be incurred and evidences of operating notes issued therefor pursuant to one or more authorizing resolutions, unless otherwise provided in the resolution or in this subchapter, at any time and from time to time, for any combination of purposes, in any specific amounts, at any rates of interest, for any term, payable at any intervals, at any place, in any manner and having any other terms or conditions deemed necessary or useful. Unless sooner exercised or unless a shorter period is provided in the resolution, every authorizing resolution shall expire 3 months after the date of its adoption.
18.73(5)
(5) Agreements and arrangements; delegation; use of operating notes. 18.73(5)(a)(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.
18.73(5)(b)
(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).
18.73(5)(c)
(c) Any operating notes may include operating notes contracted to fund interest, accrued or to accrue, on the operating notes.
18.73(5)(d)
(d) With respect to any interest exchange agreement or agreements specified in
par. (a), all of the following shall apply:
18.73(5)(d)1.
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.
18.73(5)(d)2.
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.
18.73(5)(d)3.
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:
18.73(5)(d)3.a.
a. The conditions under which the commission may enter into the agreements.
18.73(5)(d)3.c.
c. The aspects of risk exposure associated with the agreements.
18.73(5)(d)3.d.
d. The standards and procedures for counterparty selection.
18.73(5)(d)3.e.
e. The standards for the procurement of, and the setting aside of reserves, if any, in connection with, the agreements.
18.73(5)(d)3.f.
f. The provisions, if any, for collateralization or other requirements for securing any counterparty's obligations under the agreements.
18.73(5)(d)3.g.
g. A system for financial monitoring and periodic assessment of the agreements.
18.73(5)(e)1.1. 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.
18.73(5)(e)2.
2. Subdivision 1. shall not apply if either of the follow occurs:
18.73(5)(e)2.a.
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.
18.73(5)(e)2.b.
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.
18.73(5)(e)3.
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.
18.73(5)(f)
(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:
18.73(5)(f)1.
1. A description of each agreement, including a summary of its terms and conditions, rates, maturity, and the estimated market value of each agreement.
18.73(5)(f)2.
2. An accounting of amounts that were required to be paid and received on each agreement.
18.73(5)(f)3.
3. Any credit enhancement, liquidity facility, or reserves, including an accounting of the costs and expenses incurred by the state.
18.73(5)(f)4.
4. A description of the counterparty to each agreement.
18.73(5)(f)5.
5. A description of the counterparty risk, the termination risk, and other risks associated with each agreement.
18.74
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.
18.74 History
History: 1983 a. 3;
2007 a. 20.
18.75
18.75
Operating note redemption fund.
