Amendment AA4-ASA1-AB61

AB61-ASA1-AA4, s. 87mr Section 87mr. 281.59 (1) (d) of the statutes is amended to read:

AB61-ASA1-AA4,20,21 281.59 (1) (d) "Subsidy" means the amounts provided by the clean water from the environmental improvement fund to clean water fund program and safe drinking water loan program projects receiving financial assistance under this section and s. 281.58 for the following purposes:

AB61-ASA1-AA4,20,23 1. To reduce the interest rate of clean water fund program and safe drinking water loan program loans from market rate to a subsidized rate.

AB61-ASA1-AA4,20,25 2. To For the clean water fund program only, to provide for financial hardship assistance, including grants.

AB61-ASA1-AA4, s. 87n Section 87n. 281.59 (1m) of the statutes is created to read:

AB61-ASA1-AA4,21,4 281.59 (1m) Establishment of programs. (a) There is established a clean water fund program, administered under s. 281.58, with financial management provided under this section.

AB61-ASA1-AA4,21,6 (b) There is established a safe drinking water loan program, administered under s. 281.61, with financial management provided under this section.

AB61-ASA1-AA4, s. 87ng Section 87ng. 281.59 (2) (a) of the statutes is amended to read:

AB61-ASA1-AA4,21,9 281.59 (2) (a) Administer its responsibilities under this section and s. ss. 281.58 and 281.61.

AB61-ASA1-AA4, s. 87nr Section 87nr. 281.59 (2) (b) of the statutes is amended to read:

AB61-ASA1-AA4,21,12 281.59 (2) (b) Cooperate with the department in administering the clean water fund program and the safe drinking water loan program.

AB61-ASA1-AA4, s. 87p Section 87p. 281.59 (2) (c) of the statutes is amended to read:

AB61-ASA1-AA4,21,16 281.59 (2) (c) Accept and hold any letter of credit from the federal government through which the state receives federal capitalization grant payments and disbursements to the clean water environmental improvement fund.

AB61-ASA1-AA4, s. 87pg Section 87pg. 281.59 (2m) (title) of the statutes is amended to read:

AB61-ASA1-AA4,21,19 281.59 (2m) (title) Investment management; clean water environmental improvement fund.

AB61-ASA1-AA4, s. 87pr Section 87pr. 281.59 (2m) (a) 1. of the statutes is amended to read:

AB61-ASA1-AA4,21,24 281.59 (2m) (a) 1. Subject to par. (b), direct the investment board under s. 25.17 (2) (d) to make any investment of the clean water environmental improvement fund, or in the collection of the principal and interest of all moneys loaned or invested from such that fund.

AB61-ASA1-AA4, s. 87q Section 87q. 281.59 (2m) (b) 1. of the statutes is amended to read:

AB61-ASA1-AA4,22,2 281.59 (2m) (b) 1. The action provides a financial benefit to the clean water environmental improvement fund.

AB61-ASA1-AA4, s. 87qg Section 87qg. 281.59 (2m) (b) 2. of the statutes is amended to read:

AB61-ASA1-AA4,22,5 281.59 (2m) (b) 2. The action does not contradict or weaken the purposes of the clean water environmental improvement fund.

AB61-ASA1-AA4, s. 87qr Section 87qr. 281.59 (3) (a) 1. of the statutes is amended to read:

AB61-ASA1-AA4,22,8 281.59 (3) (a) 1. An estimate of wastewater treatment and safe drinking water needs of the state for the 4 fiscal years of the next 2 biennia.

AB61-ASA1-AA4, s. 87r Section 87r. 281.59 (3) (a) 2. of the statutes is amended to read:

AB61-ASA1-AA4,22,12 281.59 (3) (a) 2. The total amount of financial assistance planned to be provided or committed to municipalities for projects under the clean water fund program and the safe drinking water loan program during the 4 fiscal years of the next 2 biennia.

AB61-ASA1-AA4, s. 87rg Section 87rg. 281.59 (3) (a) 4. of the statutes is repealed.

AB61-ASA1-AA4, s. 87rr Section 87rr. 281.59 (3) (a) 5. of the statutes is amended to read:

AB61-ASA1-AA4,22,19 281.59 (3) (a) 5. Audited financial statements of the past operations and activities of the program under this section and s. 281.58, the estimated fund capital available in each of the next 4 fiscal years, and the projected clean water fund balance for each of the next 20 years given existing obligations and financial conditions clean water fund program and the safe drinking water loan program.

AB61-ASA1-AA4, s. 87s Section 87s. 281.59 (3) (a) 6. of the statutes is amended to read:

AB61-ASA1-AA4,22,25 281.59 (3) (a) 6. An amount equal to the estimated present value of subsidies for all clean water fund program loans and grants expected to be made for the wastewater treatment projects listed in the biennial needs list under s. 281.58 (3m), discounted at a rate of 7% per year to the first day of the biennium for which the biennial finance plan is prepared.

AB61-ASA1-AA4, s. 87sg Section 87sg. 281.59 (3) (a) 6m. of the statutes is created to read:

AB61-ASA1-AA4,23,5 281.59 (3) (a) 6m. An amount equal to the estimated present value of subsidies for all loans under the safe drinking water loan program to be made during the biennium for which the biennial finance plan is prepared, discounted at a rate of 7% per year to the first day of that biennium.

AB61-ASA1-AA4, s. 87sr Section 87sr. 281.59 (3) (a) 7. of the statutes is amended to read:

AB61-ASA1-AA4,23,8 281.59 (3) (a) 7. A discussion of the assumptions made in calculating the amount amounts under subd. subds. 6. and 6m.

AB61-ASA1-AA4, s. 87t Section 87t. 281.59 (3) (a) 8. of the statutes is amended to read:

AB61-ASA1-AA4,23,11 281.59 (3) (a) 8. The amount of any service fee expected to be charged under s. 281.58 (9) (d) during the next biennium under this section to an applicant.

AB61-ASA1-AA4, s. 87tg Section 87tg. 281.59 (3) (b) of the statutes is amended to read:

AB61-ASA1-AA4,23,17 281.59 (3) (b) The department of administration and the department shall consider as a guideline in preparing the portion of the biennial finance plan for the clean water fund program that all state water pollution abatement general obligation debt service costs should not exceed 50% of all general obligation debt service costs to the state.

AB61-ASA1-AA4, s. 87tr Section 87tr. 281.59 (3) (c), (d), (dm), (e), (f) and (i) of the statutes are renumbered 281.59 (3e) (a), (b), (c), (d), (e) and (f), and 281.59 (3e) (a), (b) (intro.), (c), (d), (e) and (f), as renumbered, are amended to read:

AB61-ASA1-AA4,23,23 281.59 (3e) (a) No moneys from the clean water fund may be expended for the clean water fund program in a biennium until the legislature reviews and approves all of the following as part of the biennial budget act for the biennium:

AB61-ASA1-AA4,24,3 1. An amount of present value of the subsidy for the clean water fund program that is specified for that biennium under par. (d) (b) and is based on the amount included in the biennial finance plan under par. sub. (3) (a) 6.

AB61-ASA1-AA4,24,6 2. The amount of public debt, authorized under s. 20.866 (2) (tc), that the state may contract for the purposes of s. 281.58 and this section the clean water fund program.

AB61-ASA1-AA4,24,8 3. The amount of revenue obligations, authorized under sub. (4) (f), that may be issued for the purposes specified in s. 25.43 (3) of the clean water fund program.

AB61-ASA1-AA4,24,11 (b) (intro.) The amount of present value of the subsidy for the clean water fund program that is required to be specified under par. (c) (a) 1. and approved by the legislature under this paragraph is as follows:

AB61-ASA1-AA4,24,19 (c) The department of administration may allocate amounts approved under par. (d) (b) as the present value of subsidies for financial assistance under this section and s. 281.58 the clean water fund program, including financial hardship assistance and assistance for the additional costs of approved projects. The department of administration may allocate amounts from the amount approved under par. (d) (b) for a biennium until December 30 of the fiscal year immediately following the biennium for projects for which complete applications under s. 281.58 (9) (a) are submitted before the end of the biennium.

AB61-ASA1-AA4,24,24 (d) The department may expend, for financial assistance in a biennium other than financial hardship assistance under s. 281.58 (13) (e), an amount up to 85% of the amount approved by the legislature under par. (d) (b). The department may expend such amount only from the percentage of the amount approved under par. (d) (b) that is not available under par. (f) (e) for financial hardship assistance.

AB61-ASA1-AA4,25,5 (e) The department may expend, for financial hardship assistance in a biennium under s. 281.58 (13) (e), an amount up to 15% of the amount approved by the legislature under par. (d) (b) for that biennium. The department may expend such amount only from the percentage of the amount approved by the legislature under par. (d) (b) that is not available under par. (e) (d) for financial assistance.

AB61-ASA1-AA4,25,10 (f) Using the amount approved under par. (d) (b) as a base, the department of administration shall calculate the present value of the actual subsidy of each clean water fund program loan or grant to be made for those projects in each biennium that are approved for financial assistance by the 2 departments. The present value shall be discounted as provided under par. sub. (3) (a) 6.

AB61-ASA1-AA4, s. 87u Section 87u. 281.59 (3) (j) of the statutes is amended to read:

AB61-ASA1-AA4,25,17 281.59 (3) (j) No later than November 1 of each odd-numbered year, the department of administration and the department jointly shall submit a report, to the building commission and committees as required under par. (bm), on the implementation of the amount established under par. (d) sub. (3e) (b) as required under s. 281.58 (9m) (e), and on the operations and activities of the clean water fund program and the safe drinking water loan program for the previous biennium.

AB61-ASA1-AA4, s. 87ug Section 87ug. 281.59 (3e) (title) of the statutes is created to read:

AB61-ASA1-AA4,25,19 281.59 (3e) (title) Clean water fund program expenditures.

AB61-ASA1-AA4, s. 87ur Section 87ur. 281.59 (3s) of the statutes is created to read:

AB61-ASA1-AA4,25,24 281.59 (3s) Safe drinking water loan program expenditures. (a) No moneys may be expended for the safe drinking water loan program in a biennium until the legislature reviews and approves all of the following as part of the biennial budget act for the biennium:

AB61-ASA1-AA4,26,3 1. An amount of present value of the subsidy for the safe drinking water loan program that is specified for that biennium under par. (b) and is based on the amount included in the biennial finance plan under sub. (3) (a) 6m.

AB61-ASA1-AA4,26,5 2. The amount of public debt, authorized under s. 20.866 (2) (td), that the state may contract for the purposes of the safe drinking water loan program.

AB61-ASA1-AA4,26,7 (b) The amount of present value of the subsidy for the safe drinking water loan program that is approved by the legislature under this paragraph is as follows:

AB61-ASA1-AA4,26,8 1. Equal to $18,000,000 during the 1997-99 biennium.

AB61-ASA1-AA4,26,9 2. Equal to $1,000 for any biennium after the 1997-99 biennium.

AB61-ASA1-AA4,26,12 (c) The department of administration may allocate amounts approved under par. (b) as the present value of subsidies for financial assistance under the safe drinking water program.

AB61-ASA1-AA4,26,17 (d) Using the amount approved under par. (b) as a base, the department of administration shall calculate the present value of the actual subsidy of each safe drinking water loan made for those projects in each biennium that are approved for financial assistance. The present value shall be discounted as provided under sub. (3) (a) 6m.

AB61-ASA1-AA4, s. 87v Section 87v. 281.59 (4) (am) of the statutes is amended to read:

AB61-ASA1-AA4,26,23 281.59 (4) (am) Deposits, appropriations or transfers to the clean water environmental improvement fund for the purposes specified in s. 25.43 (3) of the clean water fund program may be funded with the proceeds of revenue obligations issued subject to and in accordance with subch. II of ch. 18 or in accordance with subch. IV of ch. 18 if designated a higher education bond.

AB61-ASA1-AA4, s. 87vg Section 87vg. 281.59 (4) (c) of the statutes is amended to read:

AB61-ASA1-AA4,27,10 281.59 (4) (c) The building commission may pledge any portion of revenues received or to be received in the fund established in par. (b) or the clean water environmental improvement fund to secure revenue obligations issued under this subsection. The pledge shall provide for the transfer to the clean water environmental improvement fund of all pledged revenues, including any interest earned on the revenues, which are in excess of the amounts required to be paid under s. 20.320 (1) (c) and (u) for the purposes specified in s. 25.43 (3) of the clean water fund program. The pledge shall provide that the transfers be made at least twice yearly, that the transferred amounts be deposited in the clean water environmental improvement fund and that the transferred amounts are free of any prior pledge.

AB61-ASA1-AA4, s. 87vr Section 87vr. 281.59 (9) (a), (am) and (b) (intro.) and 1. of the statutes are amended to read:

AB61-ASA1-AA4,27,19 281.59 (9) (a) A loan approved under this section and s. 281.58 the clean water fund program or the safe drinking water loan program shall be for no longer than 20 years, as determined by the department of administration, be fully amortized not later than 20 years after the original date of the note, and require the repayment of principal and interest, if any, to begin not later than 12 months after the expected date of completion of the project that it funds, as determined by the department of administration.

AB61-ASA1-AA4,28,4 (am) The department of administration, in consultation with the department, may establish those terms and conditions of a financial assistance agreement that relate to its financial management, including what type of municipal obligation, as set forth under s. 66.36, is required for the repayment of the financial assistance. Any terms and conditions established under this paragraph by the department of administration shall comply with the requirements of this section and s. 281.58 or 281.61. In setting such the terms and conditions, the department of administration may consider factors that the department of administration finds are relevant, including the type of municipal obligation evidencing the loan, the pledge of security for the municipal obligation and the municipality's applicant's creditworthiness.

AB61-ASA1-AA4,28,7 (b) (intro.) As a condition of receiving financial assistance under this section and s. 281.58, a municipality the clean water fund program or the safe drinking water loan program, an applicant shall do all of the following:

AB61-ASA1-AA4,28,9 1. Pledge the security, if any, required by the rules promulgated by the department of administration under this section and s. 281.58 or 281.61.

AB61-ASA1-AA4, s. 87w Section 87w. 281.59 (11) of the statutes is amended to read:

AB61-ASA1-AA4,28,16 281.59 (11) Financial assistance payments. (a) The department of natural resources and the department of administration may enter into a financial assistance agreement with a municipality an applicant for which the department of administration has allocated subsidy under s. 281.58 (9m) or 281.61 (8) if the municipality applicant meets the conditions under sub. (9) and s. 281.58 (14) and the other requirements under this section and s. 281.58 or 281.61.

AB61-ASA1-AA4,28,20 (am) The department of administration shall make the financial assistance payments to a municipality which an applicant that has entered into a financial assistance agreement under par. (a) or to the municipality's applicant's designated agent.

AB61-ASA1-AA4,29,4 (b) If a municipality fails to make a principal repayment or interest payment after its due date, the department of administration shall place on file a certified statement of all amounts due under this section and s. 281.58 or 281.61. After consulting the department, the department of administration may collect all amounts due by deducting those amounts from any state payments due the municipality or may add a special charge to the amount of taxes apportioned to and levied upon the county under s. 70.60. If the department of administration collects amounts due, it shall remit those amounts to the fund to which they are due and notify the department of that action.

AB61-ASA1-AA4,29,9 (c) The department of administration may retain the last payment under a financial assistance agreement until the department of natural resources and the department of administration determine that the project is completed and meets the applicable requirements of this section and s. 281.58 or 281.61 and that the conditions of the financial assistance agreement are met.

AB61-ASA1-AA4, s. 87wg Section 87wg. 281.59 (13m) of the statutes is amended to read:

AB61-ASA1-AA4,30,2 281.59 (13m) Legislative moral obligation. The building commission may, at the time the loan is made, by resolution designate a loan made under this section and s. 281.58 the clean water fund program as one to which this subsection applies. If at any time the payments received or expected to be received from a municipality on any loan so designated are pledged to secure revenue obligations of the state issued pursuant to subch. II of ch. 18 and are insufficient to pay when due principal of and interest on such loan, the department of administration shall certify the amount of such insufficiency to the secretary of administration, the governor and the joint committee on finance. If the certification is received by the secretary of administration in an even-numbered year before the completion of the budget under s. 16.43, the secretary of administration shall include the certified amount in the budget compilation. In any event, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so requested for the purpose of payment of the revenue obligation secured thereby. Recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that, if ever called upon to do so, it shall make the appropriation.

AB61-ASA1-AA4, s. 87wr Section 87wr. 281.59 (13s) of the statutes is amended to read:

AB61-ASA1-AA4,30,6 281.59 (13s) Powers. The department of administration may audit, or contract for audits of, projects receiving financial assistance under this section and s. 281.58 the clean water fund program and the safe drinking water loan program.

AB61-ASA1-AA4, s. 87x Section 87x. 281.59 (14) of the statutes is amended to read:

AB61-ASA1-AA4,30,10 281.59 (14) Rules. The department of administration shall promulgate rules that are necessary for the proper execution of this section and of its responsibilities under s. ss. 281.58 and 281.61.

AB61-ASA1-AA4, s. 87xg Section 87xg. 281.61 of the statutes is created to read:

AB61-ASA1-AA4,30,12 281.61 Safe drinking water loan program. (1) Definitions. In this section:

AB61-ASA1-AA4,30,15 (a) "Local governmental unit" means a city, village, town, county, town sanitary district, public inland lake protection and rehabilitation district or municipal water district.

AB61-ASA1-AA4,30,18 (b) "Market interest rate" means the interest at the effective rate of a revenue obligation issued by this state to fund a loan or portion of a loan for a clean water fund program project under s. 281.58.

AB61-ASA1-AA4,30,22 (c) "Public water system" means a water system providing piped water to the public for human consumption if the water system has at least 15 service connections or regularly serves an average of at least 25 individuals daily for at least 60 days each year.

AB61-ASA1-AA4,30,24 (d) "Safe drinking water loan program" means the program administered under this section, with financial management provided under s. 281.59.

AB61-ASA1-AA4,31,6 (2) General. The department and the department of administration shall administer a program to provide financial assistance to local governmental units for projects for the planning, designing, construction or modification of public water systems, if the projects 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.

AB61-ASA1-AA4,31,13 (2g) Ineligible projects. A local governmental unit is not eligible for financial assistance under this section if the local governmental unit does not have the technical, managerial or financial capacity to ensure compliance with the Safe Drinking Water Act, 42 USC 300f to 300j-26, or the public water system operated by the local governmental unit is in significant noncompliance with any requirement of a primary drinking water regulation or variance under 42 USC 300g-1 unless the financial assistance will ensure compliance with the Safe Drinking Water Act.