SB159, s. 4
1Section 4. 18.52 (5) (intro.) of the statutes is renumbered 18.52 (5) and
2amended to read:
SB159,4,63 18.52 (5) "Revenue obligation" means every undertaking by the state to repay
4a certain amount of borrowed money which is:
an enterprise obligation or a special
5fund obligation. A revenue obligation may be both an enterprise obligation and a
6special fund obligation
.
SB159, s. 5 7Section 5. 18.52 (5) (a) of the statutes is renumbered 18.52 (2m) (a) and
8amended to read:
SB159,4,119 18.52 (2m) (a) Created for the purpose of purchasing, acquiring, leasing,
10constructing, extending, expanding, adding to, improving, conducting, controlling,
11operating or managing a revenue-producing enterprise or program;.
SB159, s. 6 12Section 6. 18.52 (5) (b) of the statutes is renumbered 18.52 (2m) (b) and
13amended to read:
SB159,4,1514 18.52 (2m) (b) Payable solely from and secured solely by the property or income
15or both of the enterprise or program; and.
SB159, s. 7 16Section 7. 18.52 (5) (c) of the statutes is renumbered 18.52 (2m) (c).
SB159, s. 8 17Section 8. 18.52 (7) of the statutes is created to read:
SB159,4,1918 18.52 (7) "Special fund obligation" means every undertaking by the state to
19repay a certain amount of borrowed money that is all of the following:
SB159,4,2020 (a) Payable from a special fund consisting of fees, penalties or excise taxes.
SB159,4,2121 (b) Not public debt under s. 18.01 (4).
SB159, s. 9 22Section 9. 18.52 (8) of the statutes is created to read:
SB159,4,2523 18.52 (8) "Special fund program" means a state program or purpose with
24respect to which the legislature has determined that financing with special fund
25obligations is appropriate and will serve a public purpose.
SB159, s. 10
1Section 10. 18.53 (3) of the statutes is renumbered 18.53 (3) (intro.) and
2amended to read:
SB159,5,103 18.53 (3) (intro.) The commission shall authorize money to be borrowed and
4evidences of revenue obligation to be issued therefor up to the amounts specified by
5the legislature to purchase, acquire, lease, construct, extend, expand, add to,
6improve, conduct, control, operate or manage such revenue-producing enterprises
7or programs as are specified by the legislature as the funds are required
. The
8requirements for funds shall be established by the state department or agency head
9carrying out program responsibilities for which the revenue obligations have been
10authorized by the legislature., but shall not exceed the following:
SB159, s. 11 11Section 11. 18.53 (3) (a) and (b) of the statutes are created to read:
SB159,5,1512 18.53 (3) (a) In the case of enterprise obligations, the amounts specified by the
13legislature to purchase, acquire, lease, construct, extend, expand, add to, improve,
14conduct, control, operate or manage such revenue-producing enterprises or
15programs as are specified by the legislature.
SB159,5,1716 (b) In the case of special fund obligations, the amount specified by the
17legislature for such expenditures to be paid from special fund obligations.
SB159, s. 12 18Section 12. 18.56 (1) of the statutes is renumbered 18.56 and amended to read:
SB159,6,5 1918.56 Revenue bonds obligations. The commission may authorize, for any
20of the purposes described in s. 18.53 (3), the issuance of revenue-obligation bonds
21revenue obligations. The bonds revenue obligations shall mature at any time not
22exceeding 50 years from the date thereof as the commission shall determine. The
23bonds revenue obligations shall be payable only out of the redemption fund provided
24under sub. s. 18.561 (5) or 18.562 (3) and each bond revenue obligation shall contain
25on its face a statement to that effect. Any such bonds A revenue obligation may

1contain a provision authorizing redemption, in whole or in part, at stipulated prices,
2at the option of the commission and shall provide the method of redeeming the bonds.
3The state and a contracting party may provide in any contract for purchasing or
4acquiring a revenue-producing enterprise or program, that payment shall be made
5in such bonds
revenue obligations.
SB159, s. 13 6Section 13. 18.56 (2) to (6) of the statutes are renumbered 18.561 (2) to (6) and
7amended to read:
SB159,7,158 18.561 (2) Security interests of owners of enterprise obligations. There
9shall be is a mortgage lien upon or security interest in the income and property of
10each revenue-producing enterprise or program to for the benefit of the holders
11owners of the related bonds and to the holders of the coupons of the bonds. The note
12or other instrument evidencing the security interest of a bondholder in a loan made
13or purchased with revenue obligation bonds shall constitute a statutory lien on the
14revenue
enterprise obligations. No physical delivery, recordation or other action is
15required to perfect the security interest. The income and property of the
16revenue-producing enterprise or program shall remain subject to the lien until
17provision for payment in full of the principal and interest of the bonds enterprise
18obligations
has been made, as provided in the authorizing resolution. Any holder
19owner of such bonds or attached coupons enterprise obligations may either at law or
20in equity protect and enforce the lien and compel performance of all duties required
21by this section. If there is any default in the payment of the principal or interest of
22any of such bonds enterprise obligations, any court having jurisdiction of the action
23may appoint a receiver to administer the revenue-producing enterprise or program
24on behalf of the state and the bondholders owners of the enterprise obligations, with
25power to charge and collect rates sufficient to provide for the payment of the

1operating expenses and also to pay any bonds or enterprise obligations outstanding
2against the revenue-producing enterprise or program, and to apply the income and
3revenues thereof in conformity with this subchapter and the authorizing resolution,
4or the court may declare the whole amount of the bonds enterprise obligations due
5and payable, if such relief is requested, and may order and direct the sale of the
6revenue-producing enterprise or program. Under any sale so ordered, the purchaser
7shall be vested with an indeterminate permit to maintain and operate the
8revenue-producing enterprise or program. The legislature may provide for
9additions, extensions and improvements to a revenue-producing enterprise or
10program to be financed by additional issues of bonds enterprise obligations as
11provided by this section. Such additional issues of bonds enterprise obligations shall
12be subordinate to all prior related issues of bonds enterprise obligations which may
13have been made under this section, unless the legislature, in the statute authorizing
14the initial issue of bonds enterprise obligations, permits the issue of additional bonds
15enterprise obligations on a parity therewith.
SB159,8,4 16(3) Dedication of revenues. As accurately as possible in advance, the
17commission and the state department or agency carrying out program
18responsibilities for which bonds enterprise obligations are to be issued shall
19determine, and the commission shall fix in the authorizing resolution for such bonds
20enterprise obligations: the proportion of the revenues of the revenue-producing
21enterprise or program which shall be necessary for the reasonable and proper
22operation and maintenance thereof; the proportion of the revenues which shall be set
23aside as a proper and adequate replacement and reserve fund; and the proportion of
24the revenues which shall be set aside and applied to the payment of the principal and
25interest of the bonds enterprise obligations, and shall provide that the revenues be

1set aside in separate funds. At any time after one year's operation, the state
2department or agency and the commission may recompute the proportion of the
3revenues which shall be assignable under this subsection based upon the experience
4of operation or upon the basis of further financing.
SB159,8,16 5(4) Replacement and reserve fund. The proportion set aside to the
6replacement and reserve fund shall be available and shall be used, whenever
7necessary, to restore any deficiency in the redemption fund for the payment of the
8principal and interest due on bonds enterprise obligations and for the creation and
9maintenance of any reserves established by the authorizing resolution to secure such
10payments. At any time when the redemption fund is sufficient for said purposes,
11moneys in the replacement and reserve fund may, subject to available
12appropriations, be expended either in the revenue-producing enterprise or program
13or in new acquisitions, constructions, extensions or, additions, expansions or
14improvements
. Any accumulations of the replacement and reserve fund may be
15invested as provided in this subchapter, and if invested, the income from the
16investment shall be carried in the replacement and reserve fund.
SB159,9,4 17(5) Redemption fund. The proportion which shall be set aside for the payment
18of the principal and interest of such bonds on the enterprise obligations shall from
19month to month as they accrue and are received, be set apart and paid into a separate
20fund in the treasury or in an account maintained by a trustee under sub. (9) (j) to be
21identified as "the ... redemption fund". Each redemption fund shall be expended, and
22all moneys from time to time on hand therein are irrevocably appropriated, in sums
23sufficient, only for the payment of principal and interest on the revenue enterprise
24obligations giving rise to it and premium, if any, due upon refunding redemption of
25any such obligations. Moneys in the redemption funds may be commingled only for

1the purpose of investment with other public funds, but they shall be invested only
2in investment instruments permitted in s. 25.17 (3) (dr). All such investments shall
3be the exclusive property of the fund and all earnings on or income from such
4investments shall be credited to the fund.
SB159,9,7 5(6) Redemption fund surplus. If any surplus is accumulated in any of the
6redemption funds, subject to any contract rights vested in holders owners of revenue
7enterprise obligations secured thereby, it shall be paid over to the treasury.
SB159, s. 14 8Section 14. 18.56 (7) and (8) of the statutes are renumbered 18.561 (7) and (8).
SB159, s. 15 9Section 15. 18.56 (9) (intro.) of the statutes is renumbered 18.561 (9) (intro.)
10and amended to read:
SB159,9,1911 18.561 (9) Authorizing resolution. (intro.) The commission may provide in
12the authorizing resolution for bonds enterprise obligations or by subsequent action
13all things necessary to carry into effect this section. Any authorizing resolution shall
14constitute a contract with the holder owners of any bonds enterprise obligations
15issued pursuant to such the resolution. Any authorizing resolution may contain such
16provisions or covenants, without limiting the generality of the power to adopt the
17resolution, as is are deemed necessary or desirable for the security of bondholders
18the owners of enterprise obligations or the marketability of the bonds enterprise
19obligations
, including but not limited to provisions as to:
SB159, s. 16 20Section 16. 18.56 (9) (a) to (j) of the statutes are renumbered 18.561 (9) (a) to
21(j), and 18.561 (9) (i) and (j), as renumbered, are amended to read:
SB159,9,2222 18.561 (9) (i) Issuance of additional bonds enterprise obligations.
SB159,9,2523 (j) Deposit of the proceeds of the sale of the bonds enterprise obligations or
24revenues of the revenue-producing enterprise or program in trust, including the
25appointment of depositories or trustees.
SB159, s. 17
1Section 17. 18.56 (10) of the statutes is renumbered 18.561 (10) and amended
2to read:
SB159,11,33 18.561 (10) Sinking fund. The authorizing resolution may set apart bonds
4enterprise obligations the par value of which are equal to the principal amount of any
5secured obligation or charge subject to which a revenue-producing enterprise or
6program is to be purchased or acquired, and shall set aside in a sinking fund from
7the income of the revenue-producing enterprise or program, a sum sufficient to
8comply with the requirements of the instrument creating the security , or if interest.
9If
the instrument does not make any provision therefor for a sinking fund, the
10resolution shall fix and determine the amount which that shall be set aside into such
11the sinking fund from month to month for interest on the secured obligation or
12charge, and a fixed amount or proportion not exceeding a stated sum, which shall be
13not less than one percent of the principal, to be set aside into the fund to pay the
14principal of the secured obligation or charge. Any balance in the fund after satisfying
15the secured obligations or charge, shall be transferred to the redemption fund. Bonds
16Enterprise obligations set aside for the secured obligation or charge may, from time
17to time, be issued to an amount sufficient with the amount then in the sinking fund,
18to pay and retire the secured obligation or charge or any portion thereof. The bonds
19enterprise obligation may be issued in exchange for or satisfaction of the secured
20obligation or charge, or may be sold in the manner provided in this subchapter, and
21the proceeds applied in payment of the same at maturity or before maturity by
22agreement with the holder owner of the secured obligation or charge. The
23commission and the owners of any revenue-producing enterprise or program
24acquired or purchased may, upon such terms and conditions as are satisfactory,
25contract that bonds enterprise obligations to provide for the discharge of the secured

1obligation or charge, or for the whole purchase price shall be deposited with a trustee
2or depository and released from the deposit from time to time on such terms and
3conditions as are necessary to secure the payment of the secured obligation or charge.
SB159, s. 18 4Section 18. 18.561 (title) of the statutes is created to read:
SB159,11,5 518.561 (title) Enterprise obligations.
SB159, s. 19 6Section 19. 18.561 (1) of the statutes is created to read:
SB159,11,97 18.561 (1) Payment with revenue obligations. The state and a contracting
8party may provide, in any contract for purchasing or acquiring a revenue-producing
9enterprise or program, that payment shall be made in revenue obligations.
SB159, s. 20 10Section 20. 18.561 (7) (title) of the statutes is created to read:
SB159,11,1111 18.561 (7) (title) Payment for services.
SB159, s. 21 12Section 21. 18.561 (8) (title) of the statutes is created to read:
SB159,11,1313 18.561 (8) (title) Rates for services.
SB159, s. 22 14Section 22. 18.561 (9) (k) of the statutes is created to read:
SB159,11,1515 18.561 (9) (k) Defeasance of the obligations.
SB159, s. 23 16Section 23. 18.562 of the statutes is created to read:
SB159,12,2 1718.562 Special fund obligations. (1) Security interest in special fund.
18There is a security interest, for the benefit of the owners of the special fund
19obligations, in the amounts that arise after the creation of the special fund program
20in the special fund related to the special fund obligations. For this purpose, amounts
21in the special fund shall be accounted for on a first-in, first-out basis. No physical
22delivery, recordation or other action is required to perfect the security interest. The
23special fund shall remain subject to the security interest until provision for payment
24in full of the principal and interest of the special fund obligations has been made, as
25provided in the authorizing resolution. An owner of special fund obligations may

1either at law or in equity protect and enforce the security interest and compel
2performance of all duties required by this section.
SB159,12,8 3(2) Use of special fund moneys. The commission and the state agency carrying
4out the special fund program responsibilities shall jointly determine, and the
5commission shall fix in the authorizing resolution for the obligations, the conditions
6under which money in the special fund shall be set aside and applied to the payment
7of the principal and interest of the obligations, deposited in funds established under
8the authorizing resolution or made available for other purposes.
SB159,12,20 9(3) Redemption fund. The special fund revenues that are to be set aside for the
10payment of the principal and interest of the special fund obligations shall be paid into
11a separate fund in the treasury or in an account maintained by a trustee under sub.
12(5) (e) to be identified as "the ... redemption fund". Each redemption fund shall be
13expended, and all moneys from time to time on hand therein are irrevocably
14appropriated, in sums sufficient, only for the payment of principal and interest on
15the special fund obligations giving rise to it and premium, if any, due upon
16redemption of any such obligations. Moneys in the redemption funds may be
17commingled only for the purpose of investment with other public funds, but they
18shall be invested only in investment instruments permitted in s. 25.17 (3) (dr). All
19such investments shall be the exclusive property of the fund and all earnings on or
20income from such investments shall be credited to the fund.
SB159,12,23 21(4) Surplus. If any surplus is accumulated in any of the redemption funds,
22subject to contract rights vested in the owners of special fund obligations secured
23thereby, it shall be paid over to the treasury.
SB159,13,6 24(5) Authorizing resolution. The commission may provide in the authorizing
25resolution for special fund obligations or by subsequent action all things necessary

1to carry into effect this section. Any authorizing resolution shall constitute a
2contract with the owners of any special fund obligations issued pursuant to the
3resolution. An authorizing resolution may contain such provisions or covenants,
4without limiting the generality of the power to adopt the resolution, as are deemed
5necessary or desirable for the security of owners of the obligations or the
6marketability of the obligations, including provisions as to:
SB159,13,77 (a) Employment of consultants.
SB159,13,88 (b) Records and accounts.
SB159,13,99 (c) Establishment of reserve or other funds.
SB159,13,1010 (d) Issuance of additional obligations.
SB159,13,1211 (e) Deposit of the proceeds of the sale of the obligations or revenues of the
12special fund in trust, including the appointment of depositories or trustees.
SB159,13,1313 (f) Defeasance of the obligations.
SB159, s. 24 14Section 24. 18.57 (title) of the statutes is repealed and recreated to read:
SB159,13,15 1518.57 (title) Funds established for revenue obligations.
SB159, s. 25 16Section 25. 18.57 (1) of the statutes is amended to read:
SB159,14,317 18.57 (1) A separate and distinct fund shall be established in the state treasury
18or in an account maintained by a trustee under s. 18.56 18.561 (9) (j) with respect to
19each revenue-producing enterprise or program the income from which is to be
20applied to the payment of any revenue enterprise obligation. A separate and distinct
21fund shall be established in the state treasury or in an account maintained by a
22trustee under s. 18.562 (5) (e) with respect to any special fund that is created by the
23imposition of fees, penalties or excise taxes and is applied to the payment of special
24fund obligations.
All moneys resulting from the issuance of evidences of revenue
25obligation shall be credited to the appropriate fund or applied for refunding or note

1renewal purposes, except that moneys which represent premium or accrued interest
2received on the issuance of evidences shall be credited to the appropriate redemption
3fund.
SB159, s. 26 4Section 26. 18.57 (4) of the statutes is renumbered 18.57 (4) (intro.) and
5amended to read:
SB159,14,86 18.57 (4) (intro.) If, after all outstanding related revenue obligations have been
7paid or payment provided for, moneys remain in any such a fund, they created under
8sub. (1), all of the following shall occur:
SB159,14,11 9(a) If the fund created under sub. (1) is in an account maintained by a trustee
10under s. 18.561 (9) (j) or 18.562 (5) (e), the moneys
shall be paid over to the treasury
11and the.
SB159,14,12 12(b) The fund created under sub. (1) shall be closed.
SB159, s. 27 13Section 27. 18.58 (1) of the statutes is amended to read:
SB159,15,214 18.58 (1) Management of funds and records. All funds established under this
15subchapter which are deposited in the state treasury shall be managed as provided
16by law for other state funds, subject to any contract rights vested in holders owners
17of evidences of revenue obligation secured by such fund. The department of
18administration shall maintain full and correct records of each fund. The legislative
19audit bureau shall audit each fund as of January 1 of each year reconciling all
20transactions and showing the fair market value of all property on hand. All records
21and audits shall be public documents. All funds established under this subchapter
22which are deposited with a trustee under s. 18.56 18.561 (9) (j) or 18.562 (5) (e) shall
23be managed in accordance with resolutions authorizing the issuance of revenue
24obligations, agreements between the commission and the trustee and any contract

1rights vested in holders of evidence owners of revenue obligations secured by such
2fund.
SB159, s. 28 3Section 28. 18.60 (1) of the statutes is amended to read:
SB159,15,204 18.60 (1) The commission may authorize, for any one or more of the purposes
5described in s. 18.53 (1), the issuance of revenue-obligation refunding bonds.
6Refunding bonds may be issued, subject to any contract rights vested in holders
7owners of bonds or notes being refinanced, to refinance more than one issue of bonds
8or notes notwithstanding that the bonds or notes may have been issued at different
9times for different purposes and may be secured by the property or income of more
10than one enterprise or program or may be public debt or building-corporation
11indebtedness. The principal amount of refunding bonds shall not exceed the sum of:
12the principal amount of the bonds or notes being refinanced; applicable redemption
13premiums; unpaid interest on the bonds or notes to the date of delivery or exchange
14of the refunding bonds; in the event the proceeds are to be deposited in trust as
15provided in sub. (3), interest to accrue on the bonds or notes from the date of delivery
16to the date of maturity or to the redemption date selected by the commission,
17whichever is earlier; and the expenses incurred in the issuance of the refunding
18bonds and the payment of the bonds or notes. A determination by the commission
19that a refinancing is advantageous or that any of the amounts provided in the
20preceding sentence should be included in the refinancing shall be conclusive.
SB159, s. 29 21Section 29. 18.60 (2) of the statutes is amended to read:
SB159,16,1222 18.60 (2) If the commission determines to exchange refunding bonds, they may
23be exchanged privately for and in payment and discharge of any of the outstanding
24bonds or notes being refinanced. Refunding bonds may be exchanged for a like or
25greater principal amount of the bonds or notes being exchanged therefor except that

1the principal amount of the refunding bonds may exceed the principal amount of the
2bonds or notes being exchanged therefor only to the extent determined by the
3commission to be necessary or advisable to pay redemption premiums and unpaid
4interest to the date of exchange not otherwise provided for. The holders owners of
5the bonds or notes being refunded who elect to exchange need not pay accrued
6interest on the refunding bonds if and to the extent that interest is accrued and
7unpaid on the bonds or notes being refunded and to be surrendered. If any of the
8bonds or notes to be refinanced are to be called for redemption, the commission shall
9determine which redemption dates shall be used, if more than one date is applicable
10and shall, prior to the issuance of the refunding bonds, provide for notice of
11redemption to be given in the manner and at the times required by the proceedings
12authorizing the outstanding bonds or notes.
SB159, s. 30 13Section 30. 18.60 (5) of the statutes is renumbered 18.60 (5) (intro.) and
14amended to read:
SB159,16,1815 18.60 (5) (intro.) All of the following provisions of s. 18.56 that are not
16inconsistent with the express provisions of this section shall apply to refunding
17bonds, except that the maximum permissible term shall be 50 years from the date
18of original issue of the oldest note or bond issue being refunded.:
SB159, s. 31 19Section 31. 18.60 (5) (a) to (c) of the statutes are created to read:
SB159,16,2020 18.60 (5) (a) Section 18.56.
SB159,16,2121 (b) In the case of enterprise obligations, s. 18.561.
SB159,16,2222 (c) In the case of special fund obligations, s. 18.562.
SB159, s. 32 23Section 32. 18.61 (2) of the statutes is amended to read:
SB159,17,724 18.61 (2) The state pledges and agrees with the holders owners of any evidences
25of
revenue obligation obligations that the state will not limit or alter its powers to

1fulfill the terms of any agreements made with the holders owners or in any way
2impair the rights and remedies of the holders owners until the revenue obligations,
3together with interest including interest on any unpaid instalments of interest, and
4all costs and expenses in connection with any action or proceeding by or on behalf of
5the holders owners, are fully met and discharged. The commission may include this
6pledge and agreement of the state in any agreement with the holders of notes or
7bonds and in any evidence
owners of revenue obligation.
SB159, s. 33 8Section 33. 18.61 (3) (a) of the statutes is amended to read:
SB159,17,179 18.61 (3) (a) If the state fails to pay any revenue obligation in accordance with
10its terms, and default continues for a period of 30 days or if the state fails or refuses
11to comply with this subchapter or defaults in any agreement made with the holders
12owners of any issue of revenue obligations, the holders owners of 25% in aggregate
13principal amount of the revenue obligations of the issue then outstanding by
14instrument recorded in the office of the register of deeds of Dane county and approved
15or acknowledged in the same manner as a deed to be recorded may appoint a trustee
16to represent the holders owners of the notes or bonds revenue obligations for the
17purposes specifically provided in the instrument.
SB159, s. 34 18Section 34. 18.61 (3) (b) (intro.) of the statutes is amended to read:
SB159,17,2119 18.61 (3) (b) (intro.) The trustee may, and upon written request of the holders
20owners of 25% in aggregate principal amount of the revenue obligations of the issue
21then outstanding shall, in the trustee's own name:
SB159, s. 35 22Section 35. 18.61 (3) (b) 1. of the statutes is amended to read:
SB159,18,323 18.61 (3) (b) 1. By action or proceeding, enforce all rights of all holders owners
24of the issue of revenue obligations, including the right to require the state to collect
25enterprise or program income adequate to carry out any agreement as to, or pledge

1of, such income and to require the state to carry out any other agreements with the
2holders owners of the revenue obligations and to perform its duties under this
3subchapter;
SB159, s. 36 4Section 36. 18.61 (3) (b) 3. of the statutes is amended to read:
SB159,18,65 18.61 (3) (b) 3. By action, require the state to account as if it were the trustee
6of an express trust for the holders owners of the revenue obligations;
SB159, s. 37 7Section 37. 18.61 (3) (b) 4. of the statutes is amended to read:
SB159,18,98 18.61 (3) (b) 4. By action, enjoin any acts or things which may be unlawful or
9in violation of the rights of the holders owners of the revenue obligations; and
SB159, s. 38 10Section 38. 18.61 (3) (c) of the statutes is amended to read:
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