Amendment SSA1-SB614

LRBs0654/3

KSH/MS/RT:kg/sg:jlb

1995 - 1996 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 1, To 1995 SENATE BILL 614

March 26, 1996 - Offered by Joint committee on Finance.

SB614-SSA1,2,19 An Act to repeal 66.898 (4) (c), 66.899 and 66.912 (5); to renumber 196.025; to amend 20.155 (1) (title), 20.155 (1) (g), 66.076 (1m), 66.076 (7), 66.076 (8), 66.886 (2) (a) 1., 66.888 (2) (b), 66.892 (2) (a), 66.892 (2) (d), 66.894 (1) (intro.), 66.898 (3), 66.90 (1), 66.904 (1), 66.91 (intro.), 66.91 (1) (g), 66.91 (5) (a), 66.91 (5) (b) 1., 66.91 (5) (b) 3. a., 66.91 (5) (b) 3. b., 66.91 (5) (c) 1., 66.91 (5) (c) 2., 66.91 (5) (d) 1., 66.91 (5) (e), 66.912 (2) (a), 66.912 (2) (b), 66.912 (2) (c), 66.912 (3), 144.241 (8) (g), 144.2415 (3) (e), 184.01 (2), 196.02 (1), 196.02 (2), 196.02 (4) (a), 196.02 (4) (c), 196.02 (5), 196.02 (6), 196.03 (1), 196.05, 196.06, 196.07, 196.09 (1), 196.09 (2), 196.09 (3), 196.09 (4), 196.09 (5), 196.09 (6) (a), 196.09 (6) (b), 196.09 (7) (intro.), 196.09 (7) (b), 196.09 (8), 196.10, 196.11 (1), 196.12 (title), 196.12 (1) (intro.), 196.13, 196.14, 196.15, 196.16 (1), 196.16 (2), 196.17 (1), 196.171 (1), 196.171 (2), 196.18, 196.19 (1), 196.19 (2), 196.19 (3), 196.19 (4), 196.19 (6), 196.20 (1), 196.20 (2) (a) 2., 196.20 (2) (b), 196.21, 196.22, 196.24 (1), 196.25 (1), 196.25 (2), 196.26 (1), 196.26 (1m), 196.26 (2) (a), 196.26 (2) (b), 196.28 (1), 196.28 (3), 196.30, 196.31 (1) (intro.), 196.31 (2), 196.37 (3), 196.39, 196.44 (1), 196.44 (2), 196.49 (2), 196.49 (3) (a), 196.49 (3) (b) (intro.), 196.49 (3) (b) 1., 196.49 (3) (b) 3., 196.49 (6), 196.525 (1) (intro.), 196.525 (2), 196.525 (3), 196.58 (1) (a), 196.58 (1) (b), 196.58 (4), 196.58 (5), 196.595 (title), 196.595 (1) (a) 1., 196.595 (1) (a) 1m., 196.595 (1) (a) 2., 196.595 (1) (a) 4., 196.595 (1) (b), 196.595 (2) (intro.), 196.60 (1), 196.60 (3), 196.604, 196.61, 196.635 (intro.), 196.635 (1), 196.64 (title), 196.64 (1), 196.643 (1), 196.65 (1) (intro.), 196.65 (1) (e), 196.65 (2), 196.66 (1), 196.66 (2), 196.66 (3) (a), 196.66 (3) (b) (intro.), 196.66 (3) (b) 1., 196.66 (3) (b) 3., 196.66 (4) (b), 196.68, 196.69, 196.70, 196.72 (title), 196.72 (1) (a), 196.72 (2), 196.78, 196.79 (1), 196.80 (3), 196.81 (1), 196.85 (1), 196.85 (2), 196.85 (3), 196.85 (4) (a) and 196.85 (5); to repeal and recreate 66.898 (4) (a), 66.898 (4) (b) and 196.44 (2); and to create 20.320 (1) (h), 66.89 (3), 66.891, 144.241 (6) (b) 9., 144.241 (13h), 184.03 (1m), 196.01 (6m), 196.02 (13), 196.025 (2), 196.49 (3) (e) and 196.80 (1s) of the statutes; relating to: regulation and supervision by the public service commission of a metropolitan sewerage district established by a lst class city, the sale or lease of metropolitan sewerage district assets under certain circumstances, authorizing the dissolution of a metropolitan sewerage district, distribution of excess reserves of a district, clean water fund program grants for certain municipalities, granting rule-making authority, making an appropriation and providing penalties.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB614-SSA1, s. 1 Section 1. 20.155 (1) (title) of the statutes is amended to read:

SB614-SSA1,2,21 20.155 (1) (title) Regulation of public utilities and regulated districts.

SB614-SSA1, s. 2 Section 2. 20.155 (1) (g) of the statutes is amended to read:

SB614-SSA1,3,7 20.155 (1) (g) (title) Utility regulation Regulation of utilities and regulated districts. The amounts in the schedule for the regulation of utilities and regulated districts. Ninety percent of all moneys received by the commission under s. 184.10 (3), 196.85 or 196.855 shall be credited to this appropriation. Ninety percent of all receipts from the sale of miscellaneous printed reports and other copied material, the cost of which was originally paid under this paragraph, shall be credited to this appropriation.

SB614-SSA1, s. 3 Section 3. 20.320 (1) (h) of the statutes is created to read:

SB614-SSA1,3,11 20.320 (1) (h) Clean water fund special grants. All moneys received from transfers to the state treasury under ss. 66.89 (3) and 66.891 (3) for grants under s. 144.241 (13h).

SB614-SSA1, s. 4 Section 4. 66.076 (1m) of the statutes is amended to read:

SB614-SSA1,3,15 66.076 (1m) In this section, "municipality" means any town, village, city or metropolitan sewerage district created under ss. 66.20 to 66.26 or under ss. 66.88 to 66.918.

SB614-SSA1, s. 5 Section 5. 66.076 (7) of the statutes is amended to read:

SB614-SSA1,3,21 66.076 (7) Sewerage service charges shall be collected and taxed and shall be a lien upon the property served in the same manner as water rates are taxed and collected under s. 66.069 (1) or 66.071 (1) (e), so far as applicable , except that charges of a metropolitan sewerage district created under ss. 66.88 to 66.918 shall be assessed and collected as provided in s. 66.91 (5).

SB614-SSA1, s. 6 Section 6. 66.076 (8) of the statutes is amended to read:

SB614-SSA1,4,3 66.076 (8) The governing body of any municipality, and the officials in charge of the management of the sewerage system as well as other officers of the municipality, shall be governed in the discharge of their powers and duties under this section by s. 66.069 or 66.071 (1) (e), which are hereby made a part of this section so far as applicable and not inconsistent herewith or, in the case of a metropolitan sewerage district created under ss. 66.88 to 66.918, by ss. 66.91 and 66.912.

SB614-SSA1, s. 7 Section 7. 66.886 (2) (a) 1. of the statutes is amended to read:

SB614-SSA1,4,9 66.886 (2) (a) 1. No resolution adopted by the commission under s. 66.91 (1), (3) (c) or (6), 67.05 (1) or 67.12 (12), no proposed schedule of charges under s. 66.076, 66.898 (4), 66.899 or 66.91 (5) (b) 3., no decision to borrow against taxes under s. 67.12 (1) and no decision to borrow under s. 24.61 (3) (a) 7. is valid unless adopted by an affirmative vote of at least a two-thirds majority of all commissioners.

SB614-SSA1, s. 8 Section 8. 66.888 (2) (b) of the statutes is amended to read:

SB614-SSA1,4,12 66.888 (2) (b) The name of a district created under s. 66.882 (1) (b) is the Milwaukee metropolitan sewerage district Metropolitan Sewerage District.

SB614-SSA1, s. 9 Section 9. 66.89 (3) of the statutes is created to read:

SB614-SSA1,4,22 66.89 (3) Excess reserves refund. (a) Develop and, upon approval by the public service commission, implement a plan to make a refund to customers of the district who are residents of municipalities that have been paying service charges, based on the equalized value of the property in the municipality, for capital costs associated with the district's water pollution abatement program, since the inception of the service charges. The refund shall consist of that portion of current reserves that are being held by the district and that are in excess of prudent reserve requirements, as determined by the public service commission, less the amount transferred under par. (b).

SB614-SSA1,5,3 (b)  Ensure that the plan developed by the Milwaukee Metropolitan Sewerage District commission and approved by the public service commission under par. (a) shall provide that the first $30,000,000 of the excess reserves under par. (a) or all of the excess reserves under par. (a), whichever is less, shall be transferred by the district, upon the approval of the plan by the public service commission, to the state treasury to be credited to the appropriation account under s. 20.320 (1) (h).

SB614-SSA1, s. 10 Section 10. 66.891 of the statutes is created to read:

SB614-SSA1,5,7 66.891 Dissolution of the district; sale or lease of district assets and facilities. (1) General authority. The commission shall, subject to s. 196.80, lease or sell any or all of the district's assets and facilities if all of the following apply:

SB614-SSA1,5,11 (a) The public service commission determines that a lease or sale will be in the best interests of the district's ratepayers. In considering whether a lease or sale will be in the best interests of the district's ratepayers, the public service commission shall consider whether the lease or sale meets all of the following conditions:

SB614-SSA1,5,13 1. The lease or sale will provide for a reasonably adequate supply of sewerage services to meet the needs of the public.

SB614-SSA1,5,16 2. The lease or sale is in the public interest when considering engineering, economic, health, safety, reliability, efficiency and environmental factors and alternate methods of providing sewerage services.

SB614-SSA1,5,19 3. The lease or sale reasonably coordinated with long-range plans and policies of other agencies or that a reasonable effort has been made to coordinate with such plans and policies.

SB614-SSA1,5,21 4. The lease or sale will abate combined sewer overflows to the extent necessary to comply with federal or state law.

SB614-SSA1,6,6 (b) The public service commission determines that, under the terms of any lease or sale agreement, the employes of the district who cease to be employes of the district on the effective date of the lease or sale and who are performing functions in relation to the assets or facilities that are leased or sold and who are covered by a collective bargaining agreement under subch. IV of ch. 111, which is in effect on the day before the effective date of the lease or sale, shall continue to perform the functions that they perform on the day before the effective date of the lease or sale, after the lease or sale until the expiration date of the collective bargaining agreement that applies to such employes or for 2 years following the effective date of this paragraph .... [revisor inserts date], whichever is sooner.

SB614-SSA1,6,10 (2) Dissolution of the district. Subject to s. 196.78, after retiring all outstanding indebtedness of the district and paying off all bonds issued by the district, the commission may dissolve the district if all of the district's assets and facilities are sold under sub. (1).

SB614-SSA1,6,17 (3) Application of proceeds. The proceeds of any sale or lease under sub. (1) to an entity other than the state shall be distributed, in a manner approved by the public service commission, to the state and municipalities in proportion to the amounts paid by the state and municipalities for capital costs since the district was reorganized under s. 66.882 (1) (b). Thirty percent of the proceeds distributed to the state under this subsection that are not obligated under s. 144.241 or 144.2415 shall be credited to the appropriation account under s. 20.320 (1) (h).

SB614-SSA1, s. 11 Section 11. 66.892 (2) (a) of the statutes is amended to read:

SB614-SSA1,6,20 66.892 (2) (a) Except as provided in pars. (b) to (d) and subject to s. ss. 144.04 and 196.49, no commission may separate combined storm and sanitary sewers.

SB614-SSA1, s. 12 Section 12. 66.892 (2) (d) of the statutes is amended to read:

SB614-SSA1,6,25 66.892 (2) (d) Any person aggrieved by the decision of the commission to separate a combined storm and sanitary sewer may file a petition for judicial review in the circuit court for the county in which the district is located. Nothing in this paragraph affects any review under s. 144.04 or 196.49.

SB614-SSA1, s. 13 Section 13. 66.894 (1) (intro.) of the statutes is amended to read:

SB614-SSA1,7,5 66.894 (1) General powers of the commission. (intro.) To the extent necessary to carry out its duties under s. 66.89 and subject to any approval required under s. 196.49, the commission may project, plan, design, adopt, construct, operate and maintain:

SB614-SSA1, s. 14 Section 14. 66.898 (3) of the statutes is amended to read:

SB614-SSA1,7,13 66.898 (3) Service charges for operation and maintenance. As part of any contract executed under this section, the commission may assess reasonable and just sewerage service charges against the contracting party with respect to operating and maintenance costs. These charges shall be established proposed by the commission in accordance with s. 66.912 and are subject to review under s. 66.912. The schedule of service charges may, but need not, be uniform with any other schedule of charges shall be established by the public service commission.

SB614-SSA1, s. 15 Section 15. 66.898 (4) (a) of the statutes is repealed and recreated to read:

SB614-SSA1,7,19 66.898 (4) (a) As part of any contract executed under this section, the commission may assess reasonable and just sewerage service charges against the contracting party with respect to capital costs. The schedule of sewerage service charges with respect to capital costs used in contracts executed under this section shall be uniform with the system used to recover capital costs within the district.

SB614-SSA1, s. 16 Section 16. 66.898 (4) (b) of the statutes is repealed and recreated to read:

SB614-SSA1,8,3 66.898 (4) (b) The charges assessed under this subsection shall be proposed by the commission in accordance with s. 66.91 (5) and shall be established by the public service commission. In computing the schedule of charges under this subsection, the public service commission may consider the factors specified in s. 66.91 (5). In computing the schedule of charges under this subsection, the public service commission may also consider the fact that sewerage service may not be available to or may be available to but not utilized by a part of the property located within the territorial limits of a contracting party at the time of computing the schedule.

SB614-SSA1, s. 17 Section 17. 66.898 (4) (c) of the statutes is repealed.

SB614-SSA1, s. 18 Section 18. 66.899 of the statutes is repealed.

SB614-SSA1, s. 19 Section 19. 66.90 (1) of the statutes is amended to read:

SB614-SSA1,8,16 66.90 (1) General power of the commission. The Subject to any approvals by the public service commission required under s. 196.49, the commission may acquire by gift, purchase, lease or other methods of acquisition or by condemnation, any real property situated in the state and all tenements, hereditaments and appurtenances belonging or in any way appertaining to, or in any interest, franchise, easement, right or privilege therein, that may be needed for the purpose of projecting, planning, constructing and maintaining the sewerage system, that may be needed for the collection, transmission or disposal of all sewage or drainage of the district or that may be needed for improving any river or stream within the district under s. 66.894 (8) (a) or (b).

SB614-SSA1, s. 20 Section 20. 66.904 (1) of the statutes is amended to read:

SB614-SSA1,8,22 66.904 (1) General powers of the commission. The Subject to any approvals by the public service commission under ch. 196, the commission may enter into contracts, agreements or stipulations necessary to perform its duties and exercise its powers under ss. 66.88 to 66.918, including contracts to purchase, lease or otherwise obtain the use of all necessary equipment, supplies and labor.

SB614-SSA1, s. 21 Section 21. 66.91 (intro.) of the statutes is amended to read:

SB614-SSA1,9,2 66.91 Financing. (intro.) The Subject to chs. 184 and 196, the district may borrow money and issue and execute bonds, notes and other forms of indebtedness and may enter into agreements to secure its indebtedness in the manner specified in subs. (1) to (7):

SB614-SSA1, s. 22 Section 22. 66.91 (1) (g) of the statutes is amended to read:

SB614-SSA1,9,9 66.91 (1) (g) User Revenue requirements used to calculate user charges and service charges established proposed by the commission under sub. (5) or s. 66.076 to comply with any covenant concerning the sufficiency of the charges contained in a resolution or ordinance providing for the issuance of revenue bonds or notes under s. 66.066 shall be presumed reasonable in any review of the charges by the public service commission under s. 66.912 (5).

SB614-SSA1, s. 23 Section 23. 66.91 (5) (a) of the statutes is amended to read:

SB614-SSA1,9,23 66.91 (5) (a) For service provided to any user, the The commission may establish, propose to assess and collect service charges under s. 66.076 or for any person provided service. In proposing user and service charges under this subsection, the commission shall first determine the revenue required by the district and shall propose user and service charges expected to generate that amount of revenue. These service charges shall be established by the public service commission and then assessed and collected under this subsection. For service to any user outside the district and not located in a municipality which has contracted with the district under s. 66.898, the commission may establish, assess and collect service charges under s. 66.899. Except as provided under s. 66.899 (2), any charge made by the district under this subsection is reviewable under s. 66.912 (5). The sewerage service charges established under s. 66.076 or under this subsection with respect to capital costs for service to any user shall be uniform.

SB614-SSA1, s. 24 Section 24. 66.91 (5) (b) 1. of the statutes is amended to read:

SB614-SSA1,10,4 66.91 (5) (b) 1. The commission may, as a complete or partial alternative to any other method of recovering capital costs, compute a proposed schedule of charges based on capital costs to be recovered under this subsection from any user person provided service.

SB614-SSA1, s. 25 Section 25. 66.91 (5) (b) 3. a. of the statutes is amended to read:

SB614-SSA1,10,7 66.91 (5) (b) 3. a. Adopt Propose a schedule of charges computed under this paragraph. The commission may modify the schedule as it deems necessary.

SB614-SSA1, s. 26 Section 26. 66.91 (5) (b) 3. b. of the statutes is amended to read:

SB614-SSA1,10,11 66.91 (5) (b) 3. b. Submit the proposed schedule of charges it adopts and each modification of the schedule to each municipality subject to the charges the public service commission for review under ch. 196.

SB614-SSA1, s. 27 Section 27. 66.91 (5) (c) 1. of the statutes is amended to read:

SB614-SSA1,10,15 66.91 (5) (c) 1. Charges for sewerage service shall, to the extent practicable, be proportionate to the costs of the sewerage system that the district may reasonably attribute to the user person provided service.

SB614-SSA1, s. 28 Section 28. 66.91 (5) (c) 2. of the statutes is amended to read:

SB614-SSA1,10,25 66.91 (5) (c) 2. The commission may propose to classify users on the basis of uses and may establish propose separate charges for separate classes. In computing proposed charges, the commission may consider any reasonable factor, including wastewater flow or drainage, delivery flow characteristics, water consumption, type and number of sewerage connections or plumbing fixtures, population served, lot size, portion of lot improved and assessed value of property served. The commission may also compute its proposed fee schedules as needed to meet the requirements of s. 66.076 or of title II of the water pollution control act, 33 USC 1251 et seq. All charges, rates and fees shall be established under ss. 196.03, 196.20 and 196.37.

SB614-SSA1, s. 29 Section 29. 66.91 (5) (d) 1. of the statutes is amended to read:

SB614-SSA1,11,12 66.91 (5) (d) 1. Each sanitary district organized under subch. IX of ch. 60 and each metropolitan sewerage district organized under ss. 66.20 to 66.26 that is billed by the commission under par. (b) shall, within 5 days of receipt of a bill from the commission, in turn bill each city, town or village served by the sanitary district or metropolitan sewerage district organized under ss. 66.20 to 66.26. Each city, town or village located within the district and billed under this paragraph or billed by the commission under par. (b) or under s. 66.076 shall, within 45 days of receiving the bill, pay the full amount billed to the district. Each municipality may levy a reasonable penalty for late payment by the user to the municipality. Each municipality may provide for the payment of charges to it by any means specified in s. 66.898 (5).

SB614-SSA1, s. 30 Section 30. 66.91 (5) (e) of the statutes is amended to read:

SB614-SSA1,11,18 66.91 (5) (e) The commission may separately compute, on any reasonable basis, both capital and operating costs of providing sewerage service to any federal, state, county or municipal facility and may, upon approval by the public service commission, directly bill the federal government, the state, the county or the municipality.

SB614-SSA1, s. 31 Section 31. 66.912 (2) (a) of the statutes is amended to read:

SB614-SSA1,11,21 66.912 (2) (a) Compute a proposed uniform schedule of charges based on operating expenses to be recovered from users under this subsection.

SB614-SSA1, s. 32 Section 32. 66.912 (2) (b) of the statutes is amended to read:

SB614-SSA1,11,24 66.912 (2) (b) Adopt Propose the uniform schedule of charges computed under par. (a). The commission may modify the schedule periodically.

SB614-SSA1, s. 33 Section 33. 66.912 (2) (c) of the statutes is amended to read:

SB614-SSA1,12,4 66.912 (2) (c) Submit the proposed schedule adopted under par. (b) and every modification to every municipality within the sewerage service area as early in every calendar year as practicable the public service commission for approval under ch. 196.