SB40-SSA1,63,137 18.09 (2) Each sinking fund shall be expended, and all moneys from time to
8time on hand therein are irrevocably appropriated, in sums sufficient, only for the
9payment of principal and interest on the bonds giving rise to it and, premium, if any,
10due upon refunding redemption of any such bonds, and payment due, if any, under
11an agreement or ancillary arrangement that has been entered into under s. 18.06 (8)
12(a) with respect to any such bonds and that has been determined to be payable from
13the bond security and redemption fund under s. 18.06 (8) (a) 2
.
SB40-SSA1, s. 150m 14Section 150m. 18.52 (1c) of the statutes is created to read:
SB40-SSA1,63,1615 18.52 (1c) "Aggregate expected debt service and net exchange payments"
16means the sum of the following:
SB40-SSA1,63,1817 (a) The aggregate net payments expected to be made and received under a
18specified interest exchange agreement under s. 18.55 (6) (a).
SB40-SSA1,63,2019 (b) The aggregate debt service expected to be made on obligations related to
20that agreement.
SB40-SSA1,63,2321 (c) The aggregate net payments expected to be made and received under all
22other interest exchange agreements under s. 18.55 (6) (a) relating to those
23obligations that are in force at the time of executing the agreement.
SB40-SSA1, s. 151 24Section 151. 18.55 (6) (a) of the statutes is amended to read:
SB40-SSA1,64,12
118.55 (6) (a) At Subject to pars. (d) and (e), at the time of, or in anticipation of,
2contracting revenue obligations and at any time thereafter while the revenue
3obligations are outstanding, the commission may enter into agreements and
4ancillary arrangements relating to the revenue obligations, including trust
5indentures, liquidity facilities, remarketing or dealer agreements, letter of credit
6agreements, insurance policies, guaranty agreements, reimbursement agreements,
7indexing agreements, or interest exchange agreements. Any payment made or
8received pursuant to any such agreements or ancillary arrangements shall be made
9from or deposited into a fund relating to the relevant revenue obligation, as
10determined by the commission. The determination of the commission included in an
11interest exchange agreement that such an agreement relates to a revenue obligation
12shall be conclusive.
SB40-SSA1, s. 151c 13Section 151c. 18.55 (6) (d) of the statutes is created to read:
SB40-SSA1,64,1514 18.55 (6) (d) With respect to any interest exchange agreement or agreements
15specified in par. (a), all of the following shall apply:
SB40-SSA1,64,1816 1. The commission shall contract with an independent financial consulting firm
17to determine if the terms and conditions of the agreement reflect a fair market value,
18as of the proposed date of the execution of the agreement.
SB40-SSA1,64,2219 2. The interest exchange agreement must identify by maturity, bond issue, or
20bond purpose the obligation to which the agreement is related. The determination
21of the commission included in an interest exchange agreement that such agreement
22relates to an obligation shall be conclusive.
SB40-SSA1,65,223 3. The resolution authorizing the commission to enter into any interest
24exchange agreement shall require that the terms and conditions of the agreement
25reflect a fair market value as of the date of execution of the agreement, as reflected

1by the determination of the independent financial consulting firm under subd. 1.,
2and shall establish guidelines for any such agreement, including the following:
SB40-SSA1,65,33 a. The conditions under which the commission may enter into the agreements.
SB40-SSA1,65,44 b. The form and content of the agreements.
SB40-SSA1,65,55 c. The aspects of risk exposure associated with the agreements.
SB40-SSA1,65,66 d. The standards and procedures for counterparty selection.
SB40-SSA1,65,87 e. The standards for the procurement of, and the setting aside of reserves, if
8any, in connection with, the agreements.
SB40-SSA1,65,109 f. The provisions, if any, for collateralization or other requirements for securing
10any counterparty's obligations under the agreements.
SB40-SSA1,65,1211 g. A system for financial monitoring and periodic assessment of the
12agreements.
SB40-SSA1, s. 151h 13Section 151h. 18.55 (6) (e) of the statutes is created to read:
SB40-SSA1,65,1614 18.55 (6) (e) 1. Subject to subd. 2., the terms and conditions of an interest
15exchange agreement under par. (a) shall not be structured so that, as of the trade date
16of the agreement, both of the following are reasonably expected to occur:
SB40-SSA1,65,2117 a. The aggregate expected debt service and net exchange payments relating to
18the agreement during the fiscal year in which the trade date occurs will be less than
19the aggregate expected debt service and net exchange payments relating to the
20agreement that would be payable during that fiscal year if the agreement is not
21executed.
SB40-SSA1,65,2522 b. The aggregate expected debt service and net exchange payments relating to
23the agreement in subsequent fiscal years will be greater than the aggregate expected
24debt service and net exchange payments relating to the agreement that would be
25payable in those fiscal years if the agreement is not executed.
SB40-SSA1,66,1
12. Subdivision 1. shall not apply if either of the follow occurs:
SB40-SSA1,66,52 a. The commission receives a determination by the independent financial
3consulting firm under par. (d) 1. that the terms and conditions of the agreement
4reflect payments by the state that represent on-market rates as of the trade date for
5the particular type of agreement.
SB40-SSA1,66,106 b. The commission provides written notice to the joint committee on finance of
7its intention to enter into an agreement that is reasonably expected to satisfy subd.
81., and the joint committee on finance either approves or disapproves, in writing, the
9commission's entering into the agreement within 14 days of receiving the written
10notice from the commission.
SB40-SSA1,66,1311 3. This paragraph shall not limit the liability of the state under an agreement
12if actual contracted net exchange payments in any fiscal year are less than or exceed
13original expectations.
SB40-SSA1, s. 151p 14Section 151p. 18.55 (6) (f) of the statutes is created to read:
SB40-SSA1,66,1815 18.55 (6) (f) Semiannually, during any year in which the state is a party to an
16agreement entered into pursuant to par. (a), the department of administration shall
17submit a report to the commission and to the cochairpersons of the joint committee
18on finance listing all such agreements. The report shall include all of the following:
SB40-SSA1,66,2019 1. A description of each agreement, including a summary of its terms and
20conditions, rates, maturity, and the estimated market value of each agreement.
SB40-SSA1,66,2221 2. An accounting of amounts that were required to be paid and received on each
22agreement.
SB40-SSA1,66,2423 3. Any credit enhancement, liquidity facility, or reserves, including an
24accounting of the costs and expenses incurred by the state.
SB40-SSA1,66,2525 4. A description of the counterparty to each agreement.
SB40-SSA1,67,2
15. A description of the counterparty risk, the termination risk, and other risks
2associated with each agreement.
SB40-SSA1, s. 151s 3Section 151s. 18.71 (1) of the statutes is renumbered 18.71 (1m).
SB40-SSA1, s. 151v 4Section 151v. 18.71 (1d) of the statutes is created to read:
SB40-SSA1,67,65 18.71 (1d) "Aggregate expected debt service and net exchange payments"
6means the sum of the following:
SB40-SSA1,67,87 (a) The aggregate net payments expected to be made and received under a
8specified interest exchange agreement under s. 18.73 (5) (a).
SB40-SSA1,67,109 (b) The aggregate debt service expected to be made on notes related to that
10agreement.
SB40-SSA1,67,1311 (c) The aggregate net payments expected to be made and received under all
12other interest exchange agreements under s. 18.73 (5) (a) relating to those notes that
13are in force at the time of executing the agreement.
SB40-SSA1, s. 152 14Section 152. 18.73 (5) of the statutes is created to read:
SB40-SSA1,68,215 18.73 (5) Agreements and arrangements; delegation; use of operating notes.
16(a) Subject to pars. (d) and (e), at the time of, or in anticipation of, contracting
17operating notes and at any time thereafter while the operating notes are
18outstanding, the commission may enter into agreements and ancillary
19arrangements relating to the operating notes, including liquidity facilities,
20remarketing or dealer agreements, letter of credit agreements, insurance policies,
21guaranty agreements, reimbursement agreements, indexing agreements, or interest
22exchange agreements. Any payment received pursuant to any such agreements or
23ancillary arrangements shall be deposited in, and any payments made pursuant to
24any such agreements or ancillary arrangements will be made from, the general fund
25or the operating note redemption fund, as determined by the commission. The

1determination of the commission included in an interest exchange agreement that
2such an agreement relates to an operating note shall be conclusive.
SB40-SSA1,68,53 (b) The commission may delegate to other persons the authority and
4responsibility to take actions necessary and appropriate to implement agreements
5and ancillary arrangements under par. (a).
SB40-SSA1,68,76 (c) Any operating notes may include operating notes contracted to fund
7interest, accrued or to accrue, on the operating notes.
SB40-SSA1,68,98 (d) With respect to any interest exchange agreement or agreements specified
9in par. (a), all of the following shall apply:
SB40-SSA1,68,1210 1. The commission shall contract with an independent financial consulting firm
11to determine if the terms and conditions of the agreement reflect a fair market value,
12as of the proposed date of the execution of the agreement.
SB40-SSA1,68,1513 2. The interest exchange agreement must identify the note to which the
14agreement is related. The determination of the commission included in an interest
15exchange agreement that such agreement relates to a note shall be conclusive.
SB40-SSA1,68,2016 3. The resolution authorizing the commission to enter into any interest
17exchange agreement shall require that the terms and conditions of the agreement
18reflect a fair market value as of the date of execution of the agreement, as reflected
19by the determination of the independent financial consulting firm under subd. 1.,
20and shall establish guidelines for any such agreement, including the following:
SB40-SSA1,68,2121 a. The conditions under which the commission may enter into the agreements.
SB40-SSA1,68,2222 b. The form and content of the agreements.
SB40-SSA1,68,2323 c. The aspects of risk exposure associated with the agreements.
SB40-SSA1,68,2424 d. The standards and procedures for counterparty selection.
SB40-SSA1,69,2
1e. The standards for the procurement of, and the setting aside of reserves, if
2any, in connection with, the agreements.
SB40-SSA1,69,43 f. The provisions, if any, for collateralization or other requirements for securing
4any counterparty's obligations under the agreements.
SB40-SSA1,69,65 g. A system for financial monitoring and periodic assessment of the
6agreements.
SB40-SSA1,69,137 (e) 1. Subject to subd. 2., the terms and conditions of an interest exchange
8agreement under par. (a) shall not be structured so that, as of the trade date of the
9agreement, the aggregate expected debt service and net exchange payments relating
10to the agreement during the fiscal year in which the trade date occurs will be less
11than the aggregate expected debt service and net exchange payments relating to the
12agreement that would be payable during that fiscal year if the agreement is not
13executed.
SB40-SSA1,69,1414 2. Subdivision 1. shall not apply if either of the follow occurs:
SB40-SSA1,69,1815 a. The commission receives a determination by the independent financial
16consulting firm under par. (d) 1. that the terms and conditions of the agreement
17reflect payments by the state that represent on-market rates as of the trade date for
18the particular type of agreement.
SB40-SSA1,69,2319 b. The commission provides written notice to the joint committee on finance of
20its intention to enter into an agreement that is reasonably expected to satisfy subd.
211., and the joint committee on finance either approves or disapproves, in writing, the
22commission's entering into the agreement within 14 days of receiving the written
23notice from the commission.
SB40-SSA1,70,3
13. This paragraph shall not limit the liability of the state under an agreement
2if actual contracted net exchange payments in any fiscal year are less than or exceed
3original expectations.
SB40-SSA1,70,74 (f) Semiannually, during any year in which the state is a party to an agreement
5entered into pursuant to par. (a), the department of administration shall submit a
6report to the commission and to the cochairpersons of the joint committee on finance
7listing all such agreements. The report shall include all of the following:
SB40-SSA1,70,98 1. A description of each agreement, including a summary of its terms and
9conditions, rates, maturity, and the estimated market value of each agreement.
SB40-SSA1,70,1110 2. An accounting of amounts that were required to be paid and received on each
11agreement.
SB40-SSA1,70,1312 3. Any credit enhancement, liquidity facility, or reserves, including an
13accounting of the costs and expenses incurred by the state.
SB40-SSA1,70,1414 4. A description of the counterparty to each agreement.
SB40-SSA1,70,1615 5. A description of the counterparty risk, the termination risk, and other risks
16associated with each agreement.
SB40-SSA1, s. 153 17Section 153. 18.74 of the statutes is amended to read:
SB40-SSA1,70,24 1818.74 Application of operating note proceeds. All moneys resulting from
19the contracting of operating notes or any payment to be received under an agreement
20or ancillary arrangement entered into under s. 18.73 (5) with respect to any such
21operating notes
shall be credited to the general fund, except that moneys which
22represent premium and accrued interest on operating notes, or moneys for purposes
23of funding or refunding operating notes pursuant to s. 18.72 (1) shall be credited to
24the operating note redemption fund.
SB40-SSA1, s. 154 25Section 154. 18.75 (2) of the statutes is amended to read:
SB40-SSA1,71,6
118.75 (2) The operating note redemption fund shall be expended and all
2moneys from time to time on hand therein are irrevocably appropriated, in sums
3sufficient, only for the payment of principal and interest on operating notes giving
4rise to it and premium, if any, due upon refunding or early redemption of such
5operating notes, and for the payment due, if any, under an agreement or ancillary
6arrangement entered into under s. 18.73 (5) with respect to such operating notes
.
SB40-SSA1, s. 155 7Section 155. 18.75 (4) of the statutes is amended to read:
SB40-SSA1,71,228 18.75 (4) There shall be transferred, under s. 20.855 (1) (a), a sum sufficient
9for the payment of the principal, interest and premium due, if any, on the and for the
10payment due, if any, under an agreement or ancillary arrangement entered into
11pursuant to s. 18.73 (5) with respect to
operating notes giving rise to it as the same
12falls due. Such transfers shall be so timed that there is at all times on hand in the
13fund an amount not less than the amount to be paid out of it during the ensuing 30
14days or such other period if so provided for in the authorizing resolution. The
15commission may pledge the deposit of additional amounts at periodic intervals and
16the secretary of the department may impound moneys of the general fund, including
17moneys temporarily reallocated from other funds under s. 20.002 (11), in accordance
18with the pledge of revenues in the authorizing resolution, and all such
19impoundments are deemed to be payments for purposes of s. 16.53 (10), but no such
20impoundment may be made until the amounts to be paid into the bond security and
21redemption fund under s. 18.09 during the ensuing 30 days have been deposited in
22the bond security and redemption fund.
SB40-SSA1, s. 156 23Section 156. 19.32 (1) of the statutes is amended to read:
SB40-SSA1,72,924 19.32 (1) "Authority" means any of the following having custody of a record: a
25state or local office, elected official, agency, board, commission, committee, council,

1department or public body corporate and politic created by constitution, law,
2ordinance, rule or order; a governmental or quasi-governmental corporation except
3for the Bradley center sports and entertainment corporation; a local exposition
4district under subch. II of ch. 229; a family long-term care district under s. 46.2895;
5any court of law; the assembly or senate; a nonprofit corporation which receives more
6than 50% of its funds from a county or a municipality, as defined in s. 59.001 (3), and
7which provides services related to public health or safety to the county or
8municipality; a nonprofit corporation operating the Olympic ice training center
9under s. 42.11 (3); or a formally constituted subunit of any of the foregoing.
SB40-SSA1, s. 157 10Section 157. 19.42 (10) (p) of the statutes is amended to read:
SB40-SSA1,72,1211 19.42 (10) (p) A member, the executive staff director, or the deputy director of
12the sentencing commission bureau of criminal justice research.
SB40-SSA1, s. 158e 13Section 158e. 19.42 (10) (r) of the statutes is created to read:
SB40-SSA1,72,1514 19.42 (10) (r) The employees and members of the board of directors of the Lower
15Fox River Remediation Authority.
SB40-SSA1, s. 159 16Section 159. 19.42 (13) (o) of the statutes is amended to read:
SB40-SSA1,72,1817 19.42 (13) (o) The position of member, executive staff director, or deputy
18director of the sentencing commission bureau of criminal justice research.
SB40-SSA1, s. 161 19Section 161. 19.55 (2) (b) of the statutes is amended to read:
SB40-SSA1,73,420 19.55 (2) (b) Records obtained or prepared by the board in connection with an
21investigation, except that the board shall permit inspection of records that are made
22public in the course of a hearing by the board to determine if a violation of this
23subchapter or subch. III of ch. 13 has occurred. Whenever the board refers such
24investigation and hearing records to a district attorney or to the attorney general,
25they may be made public in the course of a prosecution initiated under this

1subchapter. The board shall also provide information from investigation and hearing
2records that pertains to the location of individuals and assets of individuals as
3requested under s. 49.22 (2m) by the department of workforce development children
4and families
or by a county child support agency under s. 59.53 (5).
SB40-SSA1, s. 162 5Section 162. 19.55 (2) (d) of the statutes is amended to read:
SB40-SSA1,73,106 19.55 (2) (d) Records of the social security number of any individual who files
7an application for licensure as a lobbyist under s. 13.63 or who registers as a principal
8under s. 13.64, except to the department of workforce development children and
9families
for purposes of administration of s. 49.22 or to the department of revenue
10for purposes of administration of s. 73.0301.
SB40-SSA1, s. 162h 11Section 162h. 19.62 (8) of the statutes is amended to read:
SB40-SSA1,73,1712 19.62 (8) "State authority" means an authority that is a state elected official,
13agency, board, commission, committee, council, department or public body corporate
14and politic created by constitution, statute, rule or order; a state governmental or
15quasi-governmental corporation; the supreme court or court of appeals; or the
16assembly or senate; or a nonprofit corporation operating the Olympic Ice Training
17Center under s. 42.11 (3)
.
SB40-SSA1, s. 163 18Section 163. 19.82 (1) of the statutes is amended to read:
SB40-SSA1,74,319 19.82 (1) "Governmental body" means a state or local agency, board,
20commission, committee, council, department or public body corporate and politic
21created by constitution, statute, ordinance, rule or order; a governmental or
22quasi-governmental corporation except for the Bradley center sports and
23entertainment corporation; a local exposition district under subch. II of ch. 229; a
24family long-term care district under s. 46.2895; a nonprofit corporation operating
25the Olympic ice training center under s. 42.11 (3);
or a formally constituted subunit

1of any of the foregoing, but excludes any such body or committee or subunit of such
2body which is formed for or meeting for the purpose of collective bargaining under
3subch. I, IV or V of ch. 111.
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