Amendment ASA1-AB188

AB188-ASA1,11,7 20.536 (1) (ka) (title) General program operations; clean water environmental improvement fund. All moneys received for providing services to the department of administration or the department of natural resources in administering ss. 25.43, 281.58 and, 281.59, 281.60, 281.61 and 281.62, for general program operations.

AB188-ASA1, s. 28 Section 28. 20.866 (1) (u) of the statutes is amended to read:

AB188-ASA1,11,17 20.866 (1) (u) Principal repayment and interest. A sum sufficient from moneys appropriated under sub. (2) (zp) and ss. 20.190 (1) (c), (i) and (j), 20.225 (1) (c), 20.245 (1) (e), (2) (e) and (j), (4) (e) and (5) (e), 20.250 (1) (e), 20.255 (1) (d), 20.285 (1) (d), (db), (fh), (ih) and (kd) and (5) (i), 20.320 (1) (c) and (t) and (2) (c), 20.370 (7) (aa), (ac), (aq), (ar), (at), (ba), (ca), (cb), (cc), (cd), (ea) and (eq), 20.395 (6) (aq) and (ar), 20.410 (1) (e), (ec) and (ko) and (3) (e), 20.435 (2) (ee) and (6) (e), 20.465 (1) (d), 20.485 (1) (f) and (go) and (3) (t), 20.505 (5) (g) and (kc) and 20.867 (1) (a) and (b) and (3) (a), (b), (g), (h), (i) and (q) for the payment of principal and interest on public debt contracted under subchs. I and IV of ch. 18.

AB188-ASA1, s. 29 Section 29. 20.866 (2) (tc) of the statutes is amended to read:

AB188-ASA1,12,2 20.866 (2) (tc) (title) Clean water fund program. From the capital improvement fund, a sum sufficient to be transferred to the clean water environmental improvement fund for the purposes of the clean water fund program under ss. 281.58 and 281.59. The state may contract public debt in an amount not to exceed $553,194,000 for this purpose. Of this amount, the amount needed to meet the requirements for state deposits under 33 USC 1382 is allocated for those deposits. Of this amount, $8,250,000 is allocated to fund the minority business development and training program under s. 66.905 (2) (b).

AB188-ASA1, s. 30 Section 30. 20.866 (2) (td) of the statutes is created to read:

AB188-ASA1,12,8 20.866 (2) (td) Safe drinking water loan program. From the capital improvement fund, a sum sufficient to be transferred to the environmental improvement fund for the safe drinking water loan program under s. 281.61. The state may contract public debt in an amount not to exceed $22,000,000 for this purpose.

AB188-ASA1, s. 31 Section 31. 25.17 (2) (d) of the statutes is amended to read:

AB188-ASA1,12,16 25.17 (2) (d) Invest the clean water environmental improvement fund, and collect the principal and interest of all moneys loaned or invested from the clean water environmental improvement fund, as directed by the department of administration under s. 281.59 (2m). In making such investment, the investment board shall accept any reasonable terms and conditions that the department of administration specifies and is relieved of any obligations relevant to prudent investment of the fund, including those set forth under ch. 881.

AB188-ASA1, s. 32 Section 32. 25.43 (title) and (1) (intro.) of the statutes are amended to read:

AB188-ASA1,12,20 25.43 (title) Clean water Environmental improvement fund. (1) (intro.) There is established a separate nonlapsible trust fund designated as the clean water environmental improvement fund, to consist of all of the following:

AB188-ASA1, s. 33 Section 33. 25.43 (1) (am) of the statutes is created to read:

AB188-ASA1,12,23 25.43 (1) (am) All capitalization grants provided by the federal government under 42 USC 300j-12.

AB188-ASA1, s. 34 Section 34. 25.43 (1) (b) of the statutes is amended to read:

AB188-ASA1,13,3 25.43 (1) (b) All state funds appropriated or transferred to the clean water environmental improvement fund to meet the requirements for state deposits under 33 USC 1382.

AB188-ASA1, s. 35 Section 35. 25.43 (1) (bm) of the statutes is created to read:

AB188-ASA1,13,7 25.43 (1) (bm) All state funds appropriated or transferred to the environmental improvement fund to meet the requirements for state deposits under 42 USC 300j-12.

AB188-ASA1, s. 36 Section 36. 25.43 (1) (c) of the statutes is amended to read:

AB188-ASA1,13,10 25.43 (1) (c) All other appropriations and transfers of state funds to the clean water environmental improvement fund.

AB188-ASA1, s. 37 Section 37. 25.43 (1) (d) of the statutes is amended to read:

AB188-ASA1,13,13 25.43 (1) (d) All gifts, grants and bequests to the clean water environmental improvement fund.

AB188-ASA1, s. 38 Section 38. 25.43 (1) (e) of the statutes is amended to read:

AB188-ASA1,13,17 25.43 (1) (e) All repayments of principal and payment payments of interest on loans made from the clean water environmental improvement fund and on obligations acquired by the department of administration under s. 281.59 (12).

AB188-ASA1, s. 39 Section 39. 25.43 (1) (f) of the statutes is amended to read:

AB188-ASA1,13,21 25.43 (1) (f) All moneys received by the clean water environmental improvement fund from the proceeds of the sale of general or revenue obligations under ch. 18 for the purpose of s. 20.866 (2) (tc) or (td) or 281.59 (4).

AB188-ASA1, s. 40 Section 40. 25.43 (1) (h) of the statutes is amended to read:

AB188-ASA1,13,23 25.43 (1) (h) The fees imposed under s. ss. 281.58 (9) (d) and 281.60 (11m).

AB188-ASA1, s. 41 Section 41. 25.43 (2) (a) of the statutes is amended to read:

AB188-ASA1,14,6 25.43 (2) (a) There is established in the clean water environmental improvement fund a clean water fund program federal revolving loan fund account consisting of the capitalization grants under sub. (1) (a) and (b) and, except as provided under sub. (2m) (b), all repayments under sub. (1) (e) and (g) of capitalization grants under sub. (1) (a) and (b) and all moneys transferred to the account under sub. (2m) (a).

AB188-ASA1, s. 42 Section 42. 25.43 (2) (am) of the statutes is created to read:

AB188-ASA1,14,12 25.43 (2) (am) There is established in the environmental improvement fund a safe drinking water loan program federal revolving loan fund account consisting of the capitalization grants under sub. (1) (am) and (bm), except as provided under sub. (2m) (a), all repayments under sub. (1) (e) of capitalization grants under sub. (1) (am) and (bm) and all moneys transferred to the account under sub. (2m) (b).

AB188-ASA1, s. 43 Section 43. 25.43 (2) (b) of the statutes is amended to read:

AB188-ASA1,14,16 25.43 (2) (b) There is established in the clean water environmental improvement fund a state revolving loan fund account consisting of all moneys in the fund not included in accounts under par. (a), (am) or (c).

AB188-ASA1, s. 44 Section 44. 25.43 (2) (c) of the statutes is amended to read:

AB188-ASA1,14,23 25.43 (2) (c) The department of administration may establish and change accounts in the clean water environmental improvement fund other than those under pars. (a), (am) and (b). The department of administration shall consult the department of natural resources before establishing or changing an account that is needed to administer the program programs under s. ss. 281.58 and , 281.59 and 281.61.

AB188-ASA1, s. 41m Section 41m. 25.43 (2m) of the statutes is created to read:

AB188-ASA1,15,3 25.43 (2m) (a) In any year, the governor may transfer an amount that does not exceed 33% of a capitalization grant under sub. (1) (am) provided in that year from the account under sub. (2) (am) to the account under sub. (2) (a).

AB188-ASA1,15,6 (b) In any year, the governor may transfer an amount that does not exceed 33% of a capitalization grant under sub. (1) (am) provided in that year from the account under sub. (2) (a) to the account under sub. (2) (am).

AB188-ASA1, s. 45 Section 45. 25.43 (3) of the statutes is amended to read:

AB188-ASA1,15,12 25.43 (3) Except for the purpose of investment as provided in s. 25.17 (2) (d), the clean water environmental improvement fund may be used only for the purposes authorized under ss. 20.320 (1) (r), (s) and, (sm) and (t) and (2) (s) and (x), 20.370 (2) (mt) and, (mx) and (mz), (6) (mu) and, (mx) and (my) and (8) (mr), 20.505 (1) (v) and, (x) and (y), 281.58 and, 281.59, 281.60, 281.61 and 281.62.

AB188-ASA1, s. 46 Section 46. 25.46 (10m) of the statutes is repealed.

AB188-ASA1, s. 47 Section 47. 66.36 (intro.) of the statutes is amended to read:

AB188-ASA1,15,19 66.36 (title) Municipal financing; clean water fund project program costs. (intro.) Subject to the terms and conditions of its financial assistance agreement, a municipality may repay financial assistance costs received from under the clean water fund program under ss. 281.58 and 281.59 by any lawful method, including any one of the following methods or any combination thereof:

AB188-ASA1, s. 48 Section 48. 234.86 of the statutes is created to read:

AB188-ASA1,15,22 234.86 Drinking water loan guarantee program. (1) Definitions. In this section:

AB188-ASA1,15,25 (a) "Community water system" means a public water system that serves at least 15 service connections used by year-round residents or that regularly serves at least 25 year-round residents.

AB188-ASA1,16,1 (b) "Department" means the department of natural resources.

AB188-ASA1,16,2 (c) "Local governmental unit" has the meaning given in s. 281.61 (1) (a).

AB188-ASA1,16,4 (d) "Noncommunity water system" means a public water system that is not a community water system.

AB188-ASA1,16,5 (e) "Public water system" has the meaning given in s. 281.61 (1) (c).

AB188-ASA1,16,8 (2) Guarantee requirements. The authority may use money from the Wisconsin drinking water reserve fund under s. 234.933 to guarantee a loan under this section if all of the following apply:

AB188-ASA1,16,9 (a) The borrower is not a local governmental unit and is one of the following:

AB188-ASA1,16,10 1. The owner of a community water system.

AB188-ASA1,16,11 2. The owner of a noncommunity water system and is not operated for profit.

AB188-ASA1,16,12 (b) The loan qualifies as an eligible loan under sub. (3).

AB188-ASA1,16,14 (c) The lender is a financial institution that enters into an agreement under s. 234.933 (3) (a).

AB188-ASA1,16,15 (3) Eligible loans. A loan is an eligible loan if all of the following apply:

AB188-ASA1,16,19 (a) The department determines that the loan will facilitate compliance with national primary drinking water regulations under 42 USC 300g-1 or otherwise significantly further the health protection objectives of the Safe Drinking Water Act, 42 USC 300f to 300j-26.

AB188-ASA1,16,21 (b) The department determines that the loan satisfies the requirements under s. 281.62 (2).

AB188-ASA1,17,3 (4) Guarantee of collection. (a) Subject to par. (b), the authority may guarantee collection of a percentage, not exceeding 80%, of the principal of any loan eligible for a guarantee under this section. The authority shall establish the percentage of the unpaid principal of an eligible loan that will be guaranteed using the procedures described in the guarantee agreement under s. 234.933 (3) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.

AB188-ASA1,17,5 (b) Except as provided in s. 234.933 (4), the total outstanding principal amount of all guaranteed loans under par. (a) may not exceed $3,000,000.

AB188-ASA1, s. 49 Section 49. 234.933 of the statutes is created to read:

AB188-ASA1,17,9 234.933 Wisconsin drinking water reserve fund. (1) Definition. In this section, "drinking water loan guarantee program" means the program under s. 234.86.

AB188-ASA1,17,13 (2) Establishment of fund. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans under s. 234.86, a Wisconsin drinking water reserve fund, consisting of all of the following:

AB188-ASA1,17,16 (a) Moneys transferred to the authority from the appropriation accounts under s. 20.320 (2) (s) and (x) or received by the authority for the Wisconsin drinking water reserve fund from any other source.

AB188-ASA1,17,18 (b) Any income from investment of money in the Wisconsin drinking water reserve fund by the authority under s. 234.03 (18).

AB188-ASA1,17,23 (3) Program administration. (a) The authority shall enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association or other person who wishes to participate in the drinking water loan guarantee program. The authority may determine all of the following, consistent with the terms of the loan guarantee program:

AB188-ASA1,17,24 1. The form of the agreement.

AB188-ASA1,18,2 2. Any conditions upon which the authority may refuse to enter into such an agreement.

AB188-ASA1,18,4 3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan.

AB188-ASA1,18,8 (b) The authority may not use any moneys other than those in the Wisconsin drinking water reserve fund for the drinking water loan guarantee program, and may not use moneys in the Wisconsin drinking water reserve fund for any programs other than the drinking water loan guarantee program.

AB188-ASA1,18,12 (c) The authority may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the drinking water loan guarantee program, to provide advice about lending requirements and issues related to the drinking water loan guarantee program.

AB188-ASA1,18,19 (d) The authority shall ensure that the cash balance in the Wisconsin drinking water reserve fund is sufficient to fund guarantees under the drinking water loan guarantee program at a ratio of $1 of reserve funding to $4 of total outstanding guaranteed principal that the authority may guarantee under the program and to pay all outstanding claims under the program. The authority shall regularly monitor the cash balance in the Wisconsin drinking water reserve fund to ensure that the cash balance is sufficient for the purposes specified in this paragraph.

AB188-ASA1,19,4 (4) Increases or decreases in loan guarantees. The authority may request the joint committee on finance to take action under s. 13.10 to permit the authority to increase or decrease the total outstanding guaranteed principal amount of loans that it may guarantee under the drinking water loan guarantee program. Included with its request, the authority shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under the drinking water loan guarantee program, and the balance remaining in the Wisconsin drinking water reserve fund on that date after deducting such amounts, if the increase or decrease is approved, with such amounts and the balance remaining, if the increase or decrease is not approved.

AB188-ASA1,19,8 (5) Annual report. Annually, the authority shall report on the number and total dollar amount of guaranteed loans under the drinking water loan guarantee program, the default rate on the loans and any other information on the program that the authority determines is significant.

AB188-ASA1,19,12 (6) Moral obligation. Recognizing its moral obligation, the legislature expresses its expectation that, if called upon to do so, it shall make an appropriation to meet all demands for funds guaranteed by the Wisconsin drinking water reserve fund.

AB188-ASA1, s. 50 Section 50. 281.58 (1) (ai) of the statutes is created to read:

AB188-ASA1,19,15 281.58 (1) (ai) "Clean water fund program" means the program administered under this section with financial management provided under s. 281.59.

AB188-ASA1, s. 51 Section 51. 281.58 (1) (cg) of the statutes is amended to read:

AB188-ASA1,19,19 281.58 (1) (cg) "Market interest rate" means the interest at the effective rate of a revenue obligation issued by the state to fund a project loan or a portion of a project loan under this section and s. 281.59 the clean water fund program.

AB188-ASA1, s. 52 Section 52. 281.58 (2m) (a) of the statutes is amended to read:

AB188-ASA1,19,22 281.58 (2m) (a) Administer its responsibilities under this section and s. 281.59 the clean water fund program.

AB188-ASA1, s. 53 Section 53. 281.58 (3m) (a) of the statutes is amended to read:

AB188-ASA1,20,3 281.58 (3m) (a) A list of wastewater treatment projects that the department estimates will apply for financial assistance under this section and s. 281.59 the clean water fund program during the next biennium.

AB188-ASA1, s. 54 Section 54. 281.58 (6) (a) (intro.) of the statutes is amended to read:

AB188-ASA1,20,7 281.58 (6) (a) (intro.) The department may determine whether a municipality is eligible for financial assistance under this section and s. 281.59 the clean water fund program for any of the following:

AB188-ASA1, s. 55 Section 55. 281.58 (6) (b) (intro.) of the statutes is amended to read:

AB188-ASA1,20,10 281.58 (6) (b) (intro.) The following methods of providing financial assistance may be used under this section and s. 281.59 the clean water fund program:

AB188-ASA1, s. 56 Section 56. 281.58 (6) (b) 8. of the statutes is amended to read: