AB218: Bill Text

1999 Assembly BILL 218

March 16, 1999 - Introduced by Representatives Kelso, Ainsworth, Olsen, Goetsch, Kaufert, Kreibich and Gronemus, cosponsored by Senators George and Rosenzweig. Referred to Joint committee on Audit.

AB218,2,7 An Act to repeal 101.143 (3) (g) 2.; to renumber 18.52 (5) (c) and 18.56 (7) and (8); to renumber and amend 18.52 (5) (intro.), 18.52 (5) (a), 18.52 (5) (b), 18.53 (3), 18.56 (1), 18.56 (2) to (6), 18.56 (9) (intro.), 18.56 (9) (a) to (j), 18.56 (10), 18.57 (4), 18.60 (5), 25.47 and 101.143 (4) (cm); to consolidate, renumber and amend 101.143 (3) (g) (intro.) and 1.; to amend 13.485 (2), 18.51, 18.57 (1), 18.58 (1), 18.60 (1), 18.60 (2), 18.61 (2), 18.61 (3) (a), 18.61 (3) (b) (intro.), 18.61 (3) (b) 1., 18.61 (3) (b) 3., 18.61 (3) (b) 4., 18.61 (3) (c), 18.61 (4), 20.143 (3) (v), 45.79 (9) (a), 84.59 (2), 85.52 (5) (c), 101.143 (3) (c) 2., 101.143 (3) (cm), 101.143 (3) (d), 101.143 (4) (b) (intro.), 101.143 (4) (d) 2. (intro.) and 281.59 (4) (b); to repeal and recreate 18.57 (title); and to create 18.52 (2m) (intro.), 18.52 (7), 18.52 (8), 18.53 (3) (a) and (b), 18.561 (title), 18.561 (1), 18.561 (7) (title), 18.561 (8) (title), 18.561 (9) (k), 18.562, 18.60 (5) (a) to (c), 20.143 (3) (s), 20.143 (3) (t), 20.143 (3) (u), 20.143 (3) (vb), 25.47 (5), 101.143 (1) (bm), 101.143 (1) (cq), 101.143 (2) (h), 101.143 (2) (i), 101.143 (2) (j), 101.143 (2e), 101.143 (3) (cg), 101.143 (3) (cp), 101.143 (3) (cs), 101.143 (3) (cw), 101.143 (4) (c) 10., 101.143 (4) (c) 11., 101.143 (4) (c) 12., 101.143 (4) (cm) 2., 101.143 (9m) and 101.143 (11) of the statutes; relating to: the petroleum storage remedial action program; authorizing revenue obligations to fund payment of claims under the petroleum storage remedial action program; authorizing a new type of revenue obligation; granting revenue bonding authority; granting rule-making authority; and making appropriations.

Analysis by the Legislative Reference Bureau

Under current law, the department of commerce administers a program to reimburse owners of certain petroleum product storage tanks for a portion of the costs of cleaning up discharges from those tanks. This program is commonly known as PECFA. This bill makes numerous changes concerning PECFA and concerning the issuance of revenue obligations by this state.

Revenue obligations

This bill authorizes the issuance of revenue obligations, to be paid from revenues deposited in the petroleum inspection fund, to fund the payment of claims under the PECFA program. Revenue obligations issued under this bill may not exceed $450,000,000 in principal amount. In addition to this limit on principal amount, the bill authorizes the issuance of revenue obligations to fund or refund these outstanding revenue obligations, to pay issuance or administrative expenses, to make deposits to reserve funds or to pay accrued or capitalized interest. The building commission may pledge any portion of revenues received from the proceeds of the obligations or the petroleum inspection fund to secure revenue obligations issued under this bill. The building commission may issue the revenue obligations when it reasonably appears to the building commission that the obligations can be fully paid on a timely basis from the petroleum inspection fund. The bill provides a so-called "moral obligation pledge" which applies if the legislature reduces the rate of the petroleum inspection fee. If the rate is reduced and there are insufficient funds in the petroleum inspection fund to pay the principal and interest on the revenue obligations, the legislature expresses its expectation and aspiration that it would make an appropriation from the general fund sufficient to pay the principal and interest on the obligations.

Under current law, the state may issue "revenue obligations" for certain specified purposes. In general, a revenue obligation is an obligation that is: 1) incurred to purchase, acquire, lease, construct, improve, operate or manage a revenue-producing enterprise; and 2) repayable solely from, and secured solely by, the property or income from the revenue-producing enterprise.

This bill broadens the definition of revenue obligation to allow revenue bonding in situations which would not meet the current law definition of revenue obligation. Under the bill, revenue obligations consist of two different types: enterprise obligations and special fund obligations. The first type of revenue obligation, called an enterprise obligation, includes all obligations authorized under current law; i.e., obligations that are incurred to purchase, acquire, lease, construct, improve, operate or manage a revenue-producing enterprise and are repayable solely from, and secured solely by, the property or income from that revenue-producing enterprise. The definition of enterprise obligation under the bill is broader than the current law definition of revenue obligation in that it eliminates the requirement that the bond be repayable solely from, and be solely secured by, property or income from the revenue-producing enterprise.

The second type of revenue obligation, a special fund obligation, is created by the bill. Special fund obligations are an undertaking by the state to repay a certain amount of borrowed money that is payable from a special fund consisting of fees, penalties or excise taxes. The bill uses this second type of revenue obligation to authorize the revenue obligation bonding for the PECFA program.

PECFA administration and reimbursement

This bill requires the department of commerce, in consultation with the department of natural resources (DNR), to promulgate rules specifying a method for determining the risk to public health, safety and welfare and to the environment posed by discharges of petroleum products. Under the bill, to be eligible for PECFA reimbursement, the owner of a petroleum product storage tank may not begin a cleanup without the approval of the department of commerce and DNR. The department of commerce and DNR will jointly determine the appropriate date to begin a cleanup based on the determination of the risk posed by a discharge and on the availability of funds to make PECFA reimbursements. The requirement for approval to begin a cleanup does not apply to emergency cleanups authorized by DNR or to cleanups of discharges from home heating oil tanks, small farm tanks and school district heating oil tanks.

Under current law, DNR generally may order a responsible person to conduct a cleanup of a hazardous substance that has been discharged into the environment and may oversee the cleanup. However, under current law, the department of commerce may order and oversee cleanups of certain discharges from petroleum product storage tanks. The department of commerce has authority over cleanups if the site of the discharge is classified as low or medium priority based on the threat that the discharge poses to public health, safety and welfare and to the environment and if the site is not contaminated by nonpetroleum hazardous substances. Current law requires DNR and the department of commerce to enter into a memorandum of understanding that establishes procedures and standards for determining whether a site is high, medium or low priority. Under this state's groundwater law, DNR and the department of health and family services set enforcement standards which represent a concentration of a pollutant in groundwater. If an activity or facility causes the concentration of a pollutant in groundwater to reach or exceed the enforcement standard, the state agency that regulates the activity or facility must, generally, prohibit the activity or practice that uses or produces the pollutant and implement remedial action.

This bill requires the department of commerce to determine the least costly method of conducting a cleanup and achieving compliance with enforcement standards for PECFA sites that are classified as low or medium priority. The bill requires the department of commerce and DNR jointly to determine the least costly method of conducting a cleanup and achieving compliance with enforcement standards for PECFA sites that are classified as high priority. The bill limits the amount of reimbursement under PECFA to the amount necessary to implement the least costly method of conducting the cleanup and achieving compliance with enforcement standards. The bill requires the departments to consider whether natural attenuation can be used for each cleanup. Natural attenuation is the naturally occurring reduction in the amount and concentration of a substance in the environment.

This bill generally requires the department of commerce to use a competitive public bidding process to help to determine the least costly method of conducting a cleanup if the estimated cost to complete an investigation, clean-up plan and cleanup exceeds $60,000. The bill provides an exemption from the bidding requirement for certain sites with groundwater contamination near wells and allows DNR to waive the bidding requirement.

This bill requires the department of commerce to conduct an annual review of ongoing PECFA cleanups at low and medium priority sites and the department of commerce and DNR to conduct an annual review of ongoing PECFA cleanups at high priority sites. As part of an annual review, the departments must determine the least costly method of completing the cleanup and achieving compliance with enforcement standards. The bill limits the amount of reimbursement under PECFA for costs incurred after the annual review to the amount necessary to complete the cleanup and achieve compliance with enforcement standards using the least costly method.

Current law authorizes the department of commerce to establish a schedule of usual and customary costs for items eligible for PECFA reimbursement. If the department of commerce establishes a usual and customary cost for an item, PECFA reimbursement for that item is limited to the usual and customary cost. This bill requires the department of commerce to establish a schedule of usual and customary costs for items that are commonly included in PECFA claims. The bill requires the department of commerce to use the schedule to determine eligible costs for cleanups for which a public bidding process is not used. This requirement applies until June 30, 2001.

Under PECFA, the owner of a petroleum product storage tank may receive an award for the amount by which the cost of the cleanup exceeds a deductible amount, up to a specified maximum. Currently, the PECFA deductible for underground tanks is generally $2,500 plus 5% of eligible costs, but not more than $7,500, except that the deductible for heating oil tanks owned by school districts and technical college districts is 25% of eligible costs.

This bill reduces the PECFA deductible for certain underground petroleum storage tanks. Under the bill, the deductible for underground tanks, other than school district and technical college district heating oil tanks, is generally 2% of the first $40,000 of eligible costs, plus 10% of the next $20,000 of eligible costs, plus 15% of the amount by which eligible costs exceed $60,000, but the maximum deductible remains $7,500.

This bill requires the department of commerce, in consultation with DNR, to promulgate rules specifying the conditions under which the two departments must issue approvals of cleanups under PECFA. The bill also requires the department of commerce, in consultation with DNR, to promulgate rules specifying information that must be submitted under PECFA, review procedures that must be followed by employes of the department of commerce and DNR and training requirements for those employes.

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:

AB218, s. 1 Section 1. 13.485 (2) of the statutes is amended to read:

AB218,5,8 13.485 (2) The building commission may, under s. 18.56 18.561 (5) and (9) (j) or 18.562 (3) and (5) (e), deposit in a separate and distinct fund, outside the state treasury, in an account maintained by a trustee, fees and charges derived from the facilities or from agreements entered into under sub. (4). The fees and charges deposited are the trustee's moneys in accordance with the agreement between this state and the trustee or in accordance with the resolution pledging the fees and charges to the repayment of revenue obligations issued under this section.

AB218, s. 2 Section 2. 18.51 of the statutes is amended to read:

AB218,5,14 18.51 Provisions applicable. The following sections apply to this subchapter, except that all references to "public debt" or "debt" are deemed shall be read to refer to a "revenue obligation" and all references to "evidences of indebtedness" shall be read to refer to "evidences of revenue obligations": ss. 18.02, 18.03, 18.06 (8), 18.07, 18.10 (1), (2), (4) to (9) and (11) and 18.17.

AB218, s. 3 Section 3. 18.52 (2m) (intro.) of the statutes is created to read:

AB218,6,2 18.52 (2m) (intro.) "Enterprise obligation" means every undertaking by the state to repay a certain amount of borrowed money that is all of the following:

AB218, s. 4 Section 4. 18.52 (5) (intro.) of the statutes is renumbered 18.52 (5) and amended to read:

AB218,6,8 18.52 (5) "Revenue obligation" means every undertaking by the state to repay a certain amount of borrowed money which is: an enterprise obligation or a special fund obligation. A revenue obligation may be both an enterprise obligation and a special fund obligation.

AB218, s. 5 Section 5. 18.52 (5) (a) of the statutes is renumbered 18.52 (2m) (a) and amended to read:

AB218,6,13 18.52 (2m) (a) Created for the purpose of purchasing, acquiring, leasing, constructing, extending, expanding, adding to, improving, conducting, controlling, operating or managing a revenue-producing enterprise or program;.

AB218, s. 6 Section 6. 18.52 (5) (b) of the statutes is renumbered 18.52 (2m) (b) and amended to read:

AB218,6,17 18.52 (2m) (b) Payable solely from and secured solely by the property or income or both of the enterprise or program; and.

AB218, s. 7 Section 7. 18.52 (5) (c) of the statutes is renumbered 18.52 (2m) (c).

AB218, s. 8 Section 8. 18.52 (7) of the statutes is created to read:

AB218,6,21 18.52 (7) "Special fund obligation" means every undertaking by the state to repay a certain amount of borrowed money that is all of the following:

AB218,6,22 (a) Payable from a special fund consisting of fees, penalties or excise taxes.

AB218,6,23 (b) Not public debt under s. 18.01 (4).

AB218, s. 9 Section 9. 18.52 (8) of the statutes is created to read:

AB218,7,3 18.52 (8) "Special fund program" means a state program or purpose with respect to which the legislature has determined that financing with special fund obligations is appropriate and will serve a public purpose.

AB218, s. 10 Section 10. 18.53 (3) of the statutes is renumbered 18.53 (3) (intro.) and amended to read:

AB218,7,13 18.53 (3) (intro.) The commission shall authorize money to be borrowed and evidences of revenue obligation to be issued therefor up to the amounts specified by the legislature to purchase, acquire, lease, construct, extend, expand, add to, improve, conduct, control, operate or manage such revenue-producing enterprises or programs as are specified by the legislature as the funds are required. The requirements for funds shall be established by the state department or agency head carrying out program responsibilities for which the revenue obligations have been authorized by the legislature., but shall not exceed the following:

AB218, s. 11 Section 11. 18.53 (3) (a) and (b) of the statutes are created to read:

AB218,7,18 18.53 (3) (a) In the case of enterprise obligations, the amounts specified by the legislature to purchase, acquire, lease, construct, extend, expand, add to, improve, conduct, control, operate or manage such revenue-producing enterprises or programs as are specified by the legislature.

AB218,7,20 (b) In the case of special fund obligations, the amount specified by the legislature for such expenditures to be paid from special fund obligations.

AB218, s. 12 Section 12. 18.56 (1) of the statutes is renumbered 18.56 and amended to read:

AB218,8,8 18.56 Revenue bonds obligations. The commission may authorize, for any of the purposes described in s. 18.53 (3), the issuance of revenue-obligation bonds revenue obligations. The bonds revenue obligations shall mature at any time not exceeding 50 years from the date thereof as the commission shall determine. The bonds revenue obligations shall be payable only out of the redemption fund provided under sub. s. 18.561 (5) or 18.562 (3) and each bond revenue obligation shall contain on its face a statement to that effect. Any such bonds A revenue obligation may contain a provision authorizing redemption, in whole or in part, at stipulated prices, at the option of the commission and shall provide the method of redeeming the bonds. The state and a contracting party may provide in any contract for purchasing or acquiring a revenue-producing enterprise or program, that payment shall be made in such bonds revenue obligations.

AB218, s. 13 Section 13. 18.56 (2) to (6) of the statutes are renumbered 18.561 (2) to (6) and amended to read:

AB218,9,18 18.561 (2) Security interests of owners of enterprise obligations. There shall be is a mortgage lien upon or security interest in the income and property of each revenue-producing enterprise or program to for the benefit of the holders owners of the related bonds and to the holders of the coupons of the bonds. The note or other instrument evidencing the security interest of a bondholder in a loan made or purchased with revenue obligation bonds shall constitute a statutory lien on the revenue enterprise obligations. No physical delivery, recordation or other action is required to perfect the security interest. The income and property of the revenue-producing enterprise or program shall remain subject to the lien until provision for payment in full of the principal and interest of the bonds enterprise obligations has been made, as provided in the authorizing resolution. Any holder owner of such bonds or attached coupons enterprise obligations may either at law or in equity protect and enforce the lien and compel performance of all duties required by this section. If there is any default in the payment of the principal or interest of any of such bonds enterprise obligations, any court having jurisdiction of the action may appoint a receiver to administer the revenue-producing enterprise or program on behalf of the state and the bondholders owners of the enterprise obligations, with power to charge and collect rates sufficient to provide for the payment of the operating expenses and also to pay any bonds or enterprise obligations outstanding against the revenue-producing enterprise or program, and to apply the income and revenues thereof in conformity with this subchapter and the authorizing resolution, or the court may declare the whole amount of the bonds enterprise obligations due and payable, if such relief is requested, and may order and direct the sale of the revenue-producing enterprise or program. Under any sale so ordered, the purchaser shall be vested with an indeterminate permit to maintain and operate the revenue-producing enterprise or program. The legislature may provide for additions, extensions and improvements to a revenue-producing enterprise or program to be financed by additional issues of bonds enterprise obligations as provided by this section. Such additional issues of bonds enterprise obligations shall be subordinate to all prior related issues of bonds enterprise obligations which may have been made under this section, unless the legislature, in the statute authorizing the initial issue of bonds enterprise obligations, permits the issue of additional bonds enterprise obligations on a parity therewith.

AB218,9,25 (3) Dedication of revenues. As accurately as possible in advance, the commission and the state department or agency carrying out program responsibilities for which bonds enterprise obligations are to be issued shall determine, and the commission shall fix in the authorizing resolution for such bonds enterprise obligations: the proportion of the revenues of the revenue-producing enterprise or program which shall be necessary for the reasonable and proper operation and maintenance thereof; the proportion of the revenues which shall be set aside as a proper and adequate replacement and reserve fund; and the proportion of the revenues which shall be set aside and applied to the payment of the principal and interest of the bonds enterprise obligations, and shall provide that the revenues be set aside in separate funds. At any time after one year's operation, the state department or agency and the commission may recompute the proportion of the revenues which shall be assignable under this subsection based upon the experience of operation or upon the basis of further financing.

AB218,10,19 (4) Replacement and reserve fund. The proportion set aside to the replacement and reserve fund shall be available and shall be used, whenever necessary, to restore any deficiency in the redemption fund for the payment of the principal and interest due on bonds enterprise obligations and for the creation and maintenance of any reserves established by the authorizing resolution to secure such payments. At any time when the redemption fund is sufficient for said purposes, moneys in the replacement and reserve fund may, subject to available appropriations, be expended either in the revenue-producing enterprise or program or in new acquisitions, constructions, extensions or, additions, expansions or improvements. Any accumulations of the replacement and reserve fund may be invested as provided in this subchapter, and if invested, the income from the investment shall be carried in the replacement and reserve fund.

AB218,11,7 (5) Redemption fund. The proportion which shall be set aside for the payment of the principal and interest of such bonds on the enterprise obligations shall from month to month as they accrue and are received, be set apart and paid into a separate fund in the treasury or in an account maintained by a trustee under sub. (9) (j) to be identified as "the ... redemption fund". Each redemption fund shall be expended, and all moneys from time to time on hand therein are irrevocably appropriated, in sums sufficient, only for the payment of principal and interest on the revenue enterprise obligations giving rise to it and premium, if any, due upon refunding redemption of any such obligations. Moneys in the redemption funds may be commingled only for the purpose of investment with other public funds, but they shall be invested only in investment instruments permitted in s. 25.17 (3) (dr). All such investments shall be the exclusive property of the fund and all earnings on or income from such investments shall be credited to the fund.

AB218,11,10 (6) Redemption fund surplus. If any surplus is accumulated in any of the redemption funds, subject to any contract rights vested in holders owners of revenue enterprise obligations secured thereby, it shall be paid over to the treasury.

AB218, s. 14 Section 14. 18.56 (7) and (8) of the statutes are renumbered 18.561 (7) and (8).

AB218, s. 15 Section 15. 18.56 (9) (intro.) of the statutes is renumbered 18.561 (9) (intro.) and amended to read:

AB218,11,22 18.561 (9) Authorizing resolution. (intro.) The commission may provide in the authorizing resolution for bonds enterprise obligations or by subsequent action all things necessary to carry into effect this section. Any authorizing resolution shall constitute a contract with the holder owners of any bonds enterprise obligations issued pursuant to such the resolution. Any authorizing resolution may contain such provisions or covenants, without limiting the generality of the power to adopt the resolution, as is are deemed necessary or desirable for the security of bondholders the owners of enterprise obligations or the marketability of the bonds enterprise obligations, including but not limited to provisions as to:

AB218, s. 16 Section 16. 18.56 (9) (a) to (j) of the statutes are renumbered 18.561 (9) (a) to (j), and 18.561 (9) (i) and (j), as renumbered, are amended to read:

AB218,11,25 18.561 (9) (i) Issuance of additional bonds enterprise obligations.

AB218,12,3 (j) Deposit of the proceeds of the sale of the bonds enterprise obligations or revenues of the revenue-producing enterprise or program in trust, including the appointment of depositories or trustees.

AB218, s. 17 Section 17. 18.56 (10) of the statutes is renumbered 18.561 (10) and amended to read:

AB218,13,6 18.561 (10) Sinking fund. The authorizing resolution may set apart bonds enterprise obligations the par value of which are equal to the principal amount of any secured obligation or charge subject to which a revenue-producing enterprise or program is to be purchased or acquired, and shall set aside in a sinking fund from the income of the revenue-producing enterprise or program, a sum sufficient to comply with the requirements of the instrument creating the security , or if interest. If the instrument does not make any provision therefor for a sinking fund, the resolution shall fix and determine the amount which that shall be set aside into such the sinking fund from month to month for interest on the secured obligation or charge, and a fixed amount or proportion not exceeding a stated sum, which shall be not less than one percent of the principal, to be set aside into the fund to pay the principal of the secured obligation or charge. Any balance in the fund after satisfying the secured obligations or charge, shall be transferred to the redemption fund. Bonds Enterprise obligations set aside for the secured obligation or charge may, from time to time, be issued to an amount sufficient with the amount then in the sinking fund, to pay and retire the secured obligation or charge or any portion thereof. The bonds enterprise obligation may be issued in exchange for or satisfaction of the secured obligation or charge, or may be sold in the manner provided in this subchapter, and the proceeds applied in payment of the same at maturity or before maturity by agreement with the holder owner of the secured obligation or charge. The commission and the owners of any revenue-producing enterprise or program acquired or purchased may, upon such terms and conditions as are satisfactory, contract that bonds enterprise obligations to provide for the discharge of the secured obligation or charge, or for the whole purchase price shall be deposited with a trustee or depository and released from the deposit from time to time on such terms and conditions as are necessary to secure the payment of the secured obligation or charge.

AB218, s. 18 Section 18. 18.561 (title) of the statutes is created to read:

AB218,13,8 18.561 (title) Enterprise obligations.

AB218, s. 19 Section 19. 18.561 (1) of the statutes is created to read:

AB218,13,12 18.561 (1) Payment with revenue obligations. The state and a contracting party may provide, in any contract for purchasing or acquiring a revenue-producing enterprise or program, that payment shall be made in revenue obligations.

AB218, s. 20 Section 20. 18.561 (7) (title) of the statutes is created to read:

AB218,13,14 18.561 (7) (title) Payment for services.

AB218, s. 21 Section 21. 18.561 (8) (title) of the statutes is created to read:

AB218,13,16 18.561 (8) (title) Rates for services.

AB218, s. 22 Section 22. 18.561 (9) (k) of the statutes is created to read:

AB218,13,18 18.561 (9) (k) Defeasance of the obligations.

AB218, s. 23 Section 23. 18.562 of the statutes is created to read:

AB218,14,5 18.562 Special fund obligations. (1) Security interest in special fund. There is a security interest, for the benefit of the owners of the special fund obligations, in the amounts that arise after the creation of the special fund program in the special fund related to the special fund obligations. For this purpose, amounts in the special fund shall be accounted for on a first-in, first-out basis. No physical delivery, recordation or other action is required to perfect the security interest. The special fund shall remain subject to the security interest until provision for payment in full of the principal and interest of the special fund obligations has been made, as provided in the authorizing resolution. An owner of special fund obligations may either at law or in equity protect and enforce the security interest and compel performance of all duties required by this section.

AB218,14,11 (2) Use of special fund moneys. The commission and the state agency carrying out the special fund program responsibilities shall jointly determine, and the commission shall fix in the authorizing resolution for the obligations, the conditions under which money in the special fund shall be set aside and applied to the payment of the principal and interest of the obligations, deposited in funds established under the authorizing resolution or made available for other purposes.

AB218,14,23 (3) Redemption fund. The special fund revenues that are to be set aside for the payment of the principal and interest of the special fund obligations shall be paid into a separate fund in the treasury or in an account maintained by a trustee under sub. (5) (e) to be identified as "the ... redemption fund". Each redemption fund shall be expended, and all moneys from time to time on hand therein are irrevocably appropriated, in sums sufficient, only for the payment of principal and interest on the special fund obligations giving rise to it and premium, if any, due upon redemption of any such obligations. Moneys in the redemption funds may be commingled only for the purpose of investment with other public funds, but they shall be invested only in investment instruments permitted in s. 25.17 (3) (dr). All such investments shall be the exclusive property of the fund and all earnings on or income from such investments shall be credited to the fund.

AB218,15,3 (4) Surplus. If any surplus is accumulated in any of the redemption funds, subject to contract rights vested in the owners of special fund obligations secured thereby, it shall be paid over to the treasury.

AB218,15,11 (5) Authorizing resolution. The commission may provide in the authorizing resolution for special fund obligations or by subsequent action all things necessary to carry into effect this section. Any authorizing resolution shall constitute a contract with the owners of any special fund obligations issued pursuant to the resolution. An authorizing resolution may contain such provisions or covenants, without limiting the generality of the power to adopt the resolution, as are deemed necessary or desirable for the security of owners of the obligations or the marketability of the obligations, including provisions as to:

AB218,15,12 (a) Employment of consultants.

AB218,15,13 (b) Records and accounts.

AB218,15,14 (c) Establishment of reserve or other funds.

AB218,15,15 (d) Issuance of additional obligations.

AB218,15,17 (e) Deposit of the proceeds of the sale of the obligations or revenues of the special fund in trust, including the appointment of depositories or trustees.