February 5, 2004 - Offered by Representative Friske.
AB325-ASA1,1,5
1An Act to amend 24.66 (4), 66.0619 (2m) (d), 66.0803 (1) (b), 66.1103 (10) (d),
267.05 (3) (d), 67.05 (4), 67.05 (5) (a), 67.05 (6), 67.05 (6a) (a) 2. a., 67.05 (6a) (am)
31., 67.12 (12) (e) 2. and 67.12 (12) (e) 5. of the statutes;
relating to: requiring
4certain referenda held by local governmental units to borrow money to contain
5financial details.
Analysis by the Legislative Reference Bureau
Generally under current law, any local governmental unit (including a city,
village, town, county, school district, technical college district, and metropolitan
sewerage district) that is authorized to levy a tax may borrow money to finance any
project that is undertaken for a public purpose. Under various circumstances, a local
governmental unit that issues debt may be required to conduct a referendum on the
question of its proposed borrowing.
Under this substitute amendment, if a local governmental unit that would like
to borrow money is required to hold a referendum on the question of whether it may
issue debt, the referendum question must specify the total estimated cost of debt
service and the length of time until the debt is retired.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB325-ASA1,2,122
24.66
(4) Popular vote, when required. If any municipality is not empowered
3by law to incur indebtedness for a particular purpose without first submitting the
4question to its electors, the application for a state trust fund loan for that purpose
5must be approved and authorized by a majority vote of the electors at a special
6election called, noticed and held in the manner provided for other special elections.
7The question to be voted on shall be filed as provided in s. 8.37. The notice of the
8election shall state the amount of the proposed loan and the purpose for which it will
9be used.
The question submitted shall include a reasonable estimate by the
10municipality of the total anticipated cost of debt service on the loan and a reasonable
11estimate by the municipality of the anticipated length of time until the debt is
12retired.
AB325-ASA1, s. 2
13Section
2. 66.0619 (2m) (d) of the statutes is amended to read:
AB325-ASA1,2,1914
66.0619
(2m) (d) The referendum shall be held and conducted and the votes
15cast shall be canvassed as at regular municipal elections and the results certified to
16the municipal clerk.
The referendum question shall include a reasonable estimate
17by the municipality of the total anticipated cost of debt service on the bonds and a
18reasonable estimate by the municipality of the anticipated length of time until the
19debt is retired. A majority of all votes cast in the municipality decides the question.
AB325-ASA1, s. 3
20Section
3. 66.0803 (1) (b) of the statutes is amended to read:
AB325-ASA1,3,7
166.0803
(1) (b) A resolution, specifying the method of payment and submitting
2the question to a referendum, shall be adopted by a majority of all the members of
3the board or council at a regular meeting, after publication at least one week previous
4in the official paper.
If the method of payment includes borrowing money, the
5referendum question shall include a reasonable effort by the board or council of the
6total anticipated cost of debt service and a reasonable estimate by the board or
7council of the anticipated length of time until the debt is retired.
AB325-ASA1, s. 4
8Section
4. 66.1103 (10) (d) of the statutes is amended to read:
AB325-ASA1,3,229
66.1103
(10) (d) The governing body may issue bonds under this section
10without submitting the proposition to the electors of the municipality for approval
11unless within 30 days from the date of publication of notice of adoption of the initial
12resolution for the bonds, a petition conforming to the requirements of s. 8.40, signed
13by not less than 5% of the registered electors of the municipality, or, if there is no
14registration of electors in the municipality, by 10% of the number of electors of the
15municipality voting for the office of governor at the last general election as
16determined under s. 115.01 (13), is filed with the clerk of the municipality and as
17provided in s. 8.37 requesting a referendum upon the question of the issuance of the
18bonds. If a petition is filed, the bonds may not be issued until approved by a majority
19of the electors of the municipality voting on the referendum at a general or special
20election.
The referendum question shall include a reasonable estimate by the
21governing body of the total anticipated cost of debt service and a reasonable estimate
22by the governing body of the anticipated length of time until the debt is retired.
AB325-ASA1,4,224
67.05
(3) (d) The question shall contain a statement of the purpose for which
25bonds are to be issued
, a reasonable estimate of the total anticipated cost of debt
1service on the bonds, a reasonable estimate of the anticipated length of time until the
2debt is retired, and the maximum amount of the bonds to be issued.
AB325-ASA1,4,204
67.05
(4) Permissive referendum in counties. If a county board adopts an
5initial resolution for an issue of county bonds to provide for the original construction
6or for the improvement and maintenance of highways, to provide railroad aid, or to
7construct, acquire or maintain, or to aid in constructing, acquiring or maintaining
8a bridge over or across any stream or other body of water bordering upon or
9intersecting any part of the county, the county clerk is not required to submit the
10resolution for approval to the electors of the county at a special election unless within
1130 days after the adoption thereof there is filed with the clerk a petition conforming
12to the requirements of s. 8.40 requesting such submission, signed by electors
13numbering at least 10% of the votes cast in the county for governor at the last general
14election. If a petition is filed, the question submitted shall be whether the resolution
15shall be or shall not be approved
, and shall include a reasonable estimate by the
16county board of the total anticipated cost of debt service on the bonds and a
17reasonable estimate by the county board of the anticipated length of time until the
18debt is retired. No such resolution of a county board other than those specified in this
19subsection need be submitted to county electors, except as provided otherwise in sub.
20(7).
AB325-ASA1,5,1422
67.05
(5) (a) Whenever an initial resolution has been so adopted by the
23governing body of a town, the clerk of the municipality shall immediately record the
24resolution and call a special election for the purpose of submitting the resolution to
25the electors of the municipality for approval.
The resolution question that is
1submitted to the electors shall include a reasonable estimate by the governing body
2of the total anticipated cost of debt service on the bonds and a reasonable estimate
3by the governing body of the anticipated length of time until the debt is retired. This
4paragraph does not apply to bonds issued to finance low-interest mortgage loans
5under s. 62.237, unless a number of electors equal to at least 15% of the votes cast
6for governor at the last general election in their town sign and file a petition
7conforming to the requirements of s. 8.40 with the town clerk requesting submission
8of the resolution. Whenever a number of electors cannot be determined on the basis
9of reported statistics, the number shall be determined in accordance with s. 60.74 (6).
10If a petition is filed, the question submitted shall be whether the resolution shall or
11shall not be approved
, and shall include a reasonable estimate by the governing body
12of the total anticipated cost of debt service on the bonds and a reasonable estimate
13by the governing body of the anticipated length of time until the debt is retired. This
14paragraph is limited in its scope by sub. (7).
AB325-ASA1,6,716
67.05
(6) Referendum in other cases. Whenever an initial resolution has been
17adopted by the governing body of any municipality other than a county, a town, a city,
18a village, a technical college district, a metropolitan sewerage district created under
19ss. 200.01 to 200.15 or 200.21 to 200.65, a town sanitary district, a public inland lake
20protection and rehabilitation district or a board of park commissioners, the clerk of
21such municipality shall immediately record the resolution and call a special meeting
22for the purpose of submitting it to the electors of the municipality for ratification or
23rejection. The calling and conduct of the meeting shall be governed by those statutes,
24so far as applicable, which govern the calling and conduct of special meetings in
25general. The notice of the meeting, which shall be publicly read before the balloting
1shall commence, and the ballot used, shall embody a copy of the resolution; the form
2of the ballot shall correspond with the form prescribed by the elections board under
3ss. 5.64 (2) and 7.08 (1) (a); and the question submitted shall be whether the
4resolution shall be approved.
The question submitted shall also include a reasonable
5estimate by the governing body of the total anticipated cost of debt service on the
6bonds and a reasonable estimate by the governing body of the anticipated length of
7time until the debt is retired.
AB325-ASA1, s. 9
8Section
9. 67.05 (6a) (a) 2. a. of the statutes is amended to read:
AB325-ASA1,6,179
67.05
(6a) (a) 2. a. Direct the school district clerk to call a special election for
10the purpose of submitting the resolution to the electors for approval or rejection, or
11direct that the resolution be submitted at the next regularly scheduled primary or
12election to be held not earlier than 45 days after the adoption of the resolution.
The
13question submitted shall include a reasonable estimate by the school board of the
14total anticipated cost of debt service on the bonds and a reasonable estimate by the
15school board of the anticipated length of time until the debt is retired. The resolution
16shall not be effective unless adopted by a majority of the school district electors voting
17at the referendum.
AB325-ASA1, s. 10
18Section
10. 67.05 (6a) (am) 1. of the statutes is amended to read:
AB325-ASA1,7,319
67.05
(6a) (am) 1. If the public hearing under par. (a) 2. b. is for informational
20purposes only and, within 30 days after the public hearing, a petition is filed with the
21school district clerk for a referendum on the resolution signed by at least 7,500
22electors of the school district or at least 20% of the school district electors, as
23determined under s. 115.01 (13), whichever is less, the resolution shall not be
24effective unless adopted by a majority of the school district electors voting at the
25referendum. The question submitted shall be whether the initial resolution shall or
1shall not be approved
and shall include a reasonable estimate by the school board of
2the total anticipated cost of debt service on the bonds and a reasonable estimate by
3the school board of the anticipated length of time until the debt is retired.
AB325-ASA1,8,45
67.12
(12) (e) 2. Unless the purpose and amount of the borrowing have been
6approved by the electors under s. 67.05 (6a) or deemed approved by the electors under
7s. 67.05 (7) (d) 3., the purpose is to refund any outstanding municipal obligation, the
8purpose is to pay unfunded prior service liability contributions under the Wisconsin
9retirement system if all of the proceeds of the note will be used for that purpose, the
10borrowing would not be subject to a referendum as a bond issue under s. 67.05 (7) (cc),
11(h) or (i), or subd. 2g. or par. (f) or (h) applies, the school district clerk shall, within
1210 days after a school board adopts a resolution under subd. 1. to issue a promissory
13note in excess of $5,000, publish notice of such adoption as a class 1 notice, under ch.
14985. Alternatively, the notice may be posted as provided under s. 10.05. The notice
15need not set forth the full contents of the resolution, but shall state the maximum
16amount proposed to be borrowed, the purpose thereof, that the resolution was
17adopted under this subsection, and the place where, and the hours during which, the
18resolution may be inspected. If, within 30 days after publication or posting, a petition
19conforming to the requirements of s. 8.40 is filed with the school district clerk for a
20referendum on the resolution signed by at least 7,500 electors of the district or at
21least 20% of the number of district electors voting for governor at the last general
22election, as determined under s. 115.01 (13), whichever is the lesser, then the
23resolution shall not be effective unless adopted by a majority of the district electors
24voting at the referendum. The referendum shall be called in the manner provided
25under s. 67.05 (6a), except that the question which appears on the ballot shall be
1"Shall .... (name of district) borrow the sum of $.... for (state purpose) by issuing its
2general obligation promissory note (or notes) under section 67.12 (12) of the
3Wisconsin Statutes
, necessitating an estimated $.... in total anticipated debt service
4costs over the estimated ....-year term of the loan?".
AB325-ASA1,9,136
67.12
(12) (e) 5. Within 10 days of the adoption by a technical college district
7board of a resolution under subd. 1. to issue a promissory note for a purpose under
8s. 38.16 (2), the secretary of the district board shall publish a notice of such adoption
9as a class 1 notice, under ch. 985. The notice need not set forth the full contents of
10the resolution, but shall state the amount proposed to be borrowed, the method of
11borrowing, the purpose thereof, that the resolution was adopted under this
12subsection and the place where and the hours during which the resolution is
13available for public inspection. If the amount proposed to be borrowed is for building
14remodeling or improvement and does not exceed $1,000,000 or is for movable
15equipment, the district board need not submit the resolution to the electors for
16approval unless, within 30 days after the publication or posting, a petition
17conforming to the requirements of s. 8.40 is filed with the secretary of the district
18board requesting a referendum at a special election to be called for that purpose.
19Such petition shall be signed by electors from each county lying wholly or partially
20within the district. The number of electors from each county shall equal at least 1.5%
21of the population of the county as determined under s. 16.96 (2) (c). If a county lies
22in more than one district, the technical college system board shall apportion the
23county's population as determined under s. 16.96 (2) (c) to the districts involved and
24the petition shall be signed by electors equal to the appropriate percentage of the
25apportioned population. In lieu of a special election, the district board may specify
1that the referendum shall be held at the next succeeding spring primary or election
2or September primary or general election. Any resolution to borrow amounts of
3money in excess of $1,000,000 for building remodeling or improvement shall be
4submitted to the electors of the district for approval. If a referendum is held or
5required under this subdivision, no promissory note may be issued until the issuance
6is approved by a majority of the district electors voting at such referendum. The
7referendum shall be noticed, called and conducted under s. 67.05 (6a) insofar as
8applicable, except that the notice of special election and ballot need not embody a
9copy of the resolution and the question which shall appear on the ballot shall be
10"Shall .... (name of district) be authorized to borrow the sum of $.... for (state purpose)
11by issuing its general obligation promissory note (or notes) under section 67.12 (12)
12of the Wisconsin Statutes
, necessitating an estimated $.... in total anticipated debt
13service costs over the estimated ....-year term of the loan?".
AB325-ASA1,9,1615
(1) This act first applies to resolutions to incur debt that are adopted on the
16effective date of this subsection.