LRB-2941/2
KSH:mfd:jf
1997 - 1998 LEGISLATURE
April 24, 1997 - Introduced by Joint committee on Audit. Referred to Joint
committee on Audit.
AB318,1,5 1An Act to renumber and amend 18.57 (4); to amend 20.867 (3) (w); and to
2create
18.57 (4) (b) of the statutes; relating to: the use of moneys remaining
3in a fund for the repayment of revenue bonds issued to fund the Wisconsin
4health education assistance loan program and permissible expenditures from
5the capital improvement fund.
Analysis by the Legislative Reference Bureau
Under current law, the state operates a Wisconsin health education assistance
loan program (WHEAL) to provide educational loans to medical and dentistry
students enrolled in the University of Wisconsin Medical School, the Medical College
of Wisconsin or Marquette University School of Dentistry. The WHEAL program is
funded by state-issued revenue bonds, which are to be repaid from the repayment
of WHEAL educational loans. The interest rate on WHEAL loans is required to be
sufficient to cover WHEAL program expenses. Current law also provides for a sum
sufficient appropriation from the capital improvement fund for the expenses of
contracting and managing public debt and revenue obligations. Although current
law would appear to prohibit the use of funds from this sum sufficient appropriation
for program costs of the WHEAL program, this bill amends that appropriation to
expressly provide that, in the case of a program funded by public debt or revenue
obligations, expenses of administering the program are not "expenses of contracting
and managing public debt and revenue obligations" and may not be paid from the
sum sufficient capital improvement fund appropriation.

Current law requires that a separate and distinct fund shall be established in
the state treasury for each state revenue-producing enterprise or program, such as
the WHEAL program, if the income from the enterprise of program is to be applied
to the payment of revenue obligations. After the revenue obligations are repaid from
this fund, any moneys remaining in the fund are paid into the general fund and the
separate and distinct fund is closed. This bill amends this provision to require, in
the case of the WHEAL repayment fund, that the first $2,150,000 of moneys
remaining in the fund, after the repayment of revenue obligations issued for the
program, shall be deposited in the capital improvement fund and that any remainder
shall be paid into the general fund.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB318, s. 1 1Section 1. 18.57 (4) of the statutes is renumbered 18.57 (4) (intro.) and
2amended to read:
AB318,2,53 18.57 (4) (intro.) If, after all outstanding related revenue obligations have been
4paid or payment provided for, moneys remain in any such a fund ,they created under
5sub. (1), all of the following shall occur:
AB318,2,7 6(a) If the fund created under sub. (1) is in an account maintained by a trustee
7under s. 18.56 (9) (j), the moneys
shall be paid over to the treasury and the.
AB318,2,8 8(c) The fund created under sub. (1) shall be closed.
AB318, s. 2 9Section 2. 18.57 (4) (b) of the statutes is created to read:
AB318,2,1310 18.57 (4) (b) The moneys shall be deposited in the general fund, except that the
11first $2,150,000 of any moneys remaining in a fund created under sub. (1) for the
12repayment of revenue bonds under s. 39.374 shall be deposited in the capital
13improvement fund.
AB318, s. 3 14Section 3. 20.867 (3) (w) of the statutes is amended to read:
AB318,3,9
120.867 (3) (w) Bonding services. From the capital improvement fund, a sum
2sufficient to pay the expenses of contracting and managing public debt and revenue
3obligations issued pursuant to ch. 18, for reimbursing the legislative audit bureau
4for providing opinion audits of financial statements and the general fund for bond
5counsel services under s. 165.25 (4) (b), and for the purchase of any higher education
6bonds presented for payment prior to maturity under s. 18.83. In the case of a
7program funded with public debt or revenue obligations, the cost of administering
8the program funded with the public debt or revenue obligations is not an expense of
9contracting and managing public debt or revenue obligations under this paragraph.
AB318,3,1010 (End)
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