LRB-2648/1
PG:cjs:rs
2001 - 2002 LEGISLATURE
April 3, 2001 - Introduced by Representatives Miller, Berceau, Boyle, Jeskewitz,
J. Lehman, Pocan, Richards, Ryba
and Shilling, cosponsored by Senator
Burke. Referred to Committee on Tax and Spending Limitations.
AB288,1,5 1An Act to amend 67.05 (6a) (a) 2. (intro.), 67.05 (6a) (b) (intro.), 67.05 (6a) (bm)
2(intro.), 67.12 (12) (e) 2. and 67.12 (12) (e) 2g. (intro.); and to create 67.05 (6a)
3(be), 67.05 (6a) (d), 67.12 (12) (e) 2i., 67.12 (12) (e) 2w. and 121.91 (4) (c) 4. of the
4statutes; relating to: school district bonds, promissory notes, and revenue
5limits.
Analysis by the Legislative Reference Bureau
Under current law, if a school board or the electors at a school district meeting
adopt a resolution to raise money by issuing a bond and the bond will cause the
aggregate outstanding indebtedness of the school district incurred without a
referendum since August 9, 1989, to exceed $1,000,000 or an amount determined by
multiplying the school district's enrollment by 1.5% of the statewide average
property tax base per pupil, whichever is less, the school board must do one of the
following:
1. Direct the school district clerk to call a special election to submit the
resolution to the electors at a binding referendum.
2. Specify in the resolution the date, time, and place for a public hearing on the
resolution. The school board must also specify whether the public hearing will be for
informational purposes only or whether the electors at the public hearing will have
an opportunity to vote on whether a binding referendum will be held.
If the school board decides to hold a public hearing for informational purposes
only, the resolution is effective unless a sufficient number of electors file a petition
for a binding referendum on the resolution within 30 days of the public hearing.

If the school board decides to hold a public hearing at which the electors present
may vote on whether a binding referendum will be held, one of the following will
occur:
1. A majority of the electors present and voting at the hearing determine that
a referendum will be held. If this occurs, the school board must direct the school
district clerk to hold the referendum.
2. A majority of the electors present and voting at the hearing determine that
no referendum will be held. If this occurs, the resolution is effective unless a
sufficient number of electors file a petition for a binding referendum on the resolution
within 30 days of the public hearing.
If a school board adopts a resolution to issue a promissory note, a referendum
will be held only if the amount of money borrowed will cause the aggregate
outstanding indebtedness of the school district incurred without a referendum since
August 9, 1989, to exceed $1,000,000 or an amount determined by multiplying the
school district's enrollment by 1.5% of the statewide average property tax base per
pupil, whichever is less, and a petition is filed and signed by a sufficient number of
school district electors.
This bill provides additional authority to issue a bond or promissory note
without a referendum if the bond or promissory note will not cause the aggregate
amount of outstanding indebtedness of the school district incurred without a
referendum since the effective date of this bill to exceed the amount determined by
multiplying the school district's enrollment by $350. The school board may use the
funds only for a capital expenditure, and only for building maintenance, remodeling,
or renovation; to pay utility costs; or for educational technology.
The bill also increases a school district's revenue limit by the amount needed
to pay debt service on a bond or promissory note authorized on or after the effective
date of this bill by school board resolution if the issuance of the bond or note was not
subject to a referendum as a result of the new provision described above.
For further information see the state and local 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:
AB288, s. 1 1Section 1. 67.05 (6a) (a) 2. (intro.) of the statutes is amended to read:
AB288,3,42 67.05 (6a) (a) 2. (intro.) Except as provided under pars. (b), (be), and (c) and
3subs. (7) and (15), if the board of any school district, or the electors at a regularly
4called school district meeting, by a majority vote adopt an initial resolution to raise
5an amount of money by a bond issue, the school district clerk shall, within 10 days,
6publish notice of such adoption as a class 1 notice under ch. 985 or post the notice as

1provided under s. 10.05. The notice shall state the maximum amount proposed to
2be borrowed, the purpose of the borrowing, that the resolution was adopted under
3this subdivision and the place where and the hours during which the resolution may
4be inspected. The school board shall also do one of the following:
AB288, s. 2 5Section 2. 67.05 (6a) (b) (intro.) of the statutes is amended to read:
AB288,3,116 67.05 (6a) (b) (intro.) Paragraph (a) 2. applies only does not apply if the amount
7of money to be raised by the bond issue will not cause the aggregate amount of
8outstanding indebtedness of the school district incurred without a referendum since
9August 9, 1989, excluding indebtedness incurred without a referendum as a result
10of par. (be) and
excluding amounts specified in par. (bm), to exceed $1,000,000 or an
11amount determined as follows, whichever is less:
AB288, s. 3 12Section 3. 67.05 (6a) (be) of the statutes is created to read:
AB288,3,1813 67.05 (6a) (be) Paragraph (a) 2. does not apply if the amount of money to be
14raised by the bond issue will not cause the aggregate amount of outstanding
15indebtedness of the school district incurred without a referendum as a result of this
16paragraph since the effective date of this paragraph .... [revisor inserts date],
17excluding amounts specified in par. (bm), to exceed an amount determined by
18multiplying the school district's membership, as defined in s. 121.004 (5), by $350.
AB288, s. 4 19Section 4. 67.05 (6a) (bm) (intro.) of the statutes is amended to read:
AB288,3,2120 67.05 (6a) (bm) (intro.) In par. pars. (b) and (be) and in s. 67.12 (12) (e) 2g. and
212i.
, "outstanding indebtedness" does not include the amount of any of the following:
AB288, s. 5 22Section 5. 67.05 (6a) (d) of the statutes is created to read:
AB288,3,2523 67.05 (6a) (d) If a school board raises funds by a bond issue and par. (a) 2. does
24not apply as a result of par. (be), the school board may use the funds only for a capital
25expenditure that is for one or more of the following purposes:
AB288,4,1
11. Building maintenance, remodeling or renovation.
AB288,4,22 2. Utility costs.
AB288,4,33 3. Educational technology.
AB288, s. 6 4Section 6. 67.12 (12) (e) 2. of the statutes is amended to read:
AB288,5,35 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 2i. or par. (f) or (h) applies, the school district clerk shall,
12within 10 days after a school board adopts a resolution under subd. 1. to issue a
13promissory note in excess of $5,000, publish notice of such adoption as a class 1
14notice, under ch. 985. Alternatively, the notice may be posted as provided under s.
1510.05. The notice need not set forth the full contents of the resolution, but shall state
16the maximum amount proposed to be borrowed, the purpose thereof, that the
17resolution was adopted under this subsection, and the place where, and the hours
18during which, the resolution may be inspected. If, within 30 days after publication
19or posting, a petition conforming to the requirements of s. 8.40 is filed with the school
20district clerk for a referendum on the resolution signed by at least 7,500 electors of
21the district or at least 20% of the number of district electors voting for governor at
22the last general election, as determined under s. 115.01 (13), whichever is the lesser,
23then the resolution shall not be effective unless adopted by a majority of the district
24electors voting at the referendum. The referendum shall be called in the manner
25provided under s. 67.05 (6a), except that the question which appears on the ballot

1shall be "Shall .... (name of district) borrow the sum of $.... for (state purpose) by
2issuing its general obligation promissory note (or notes) under section 67.12 (12) of
3the Wisconsin Statutes?".
AB288, s. 7 4Section 7. 67.12 (12) (e) 2g. (intro.) of the statutes is amended to read:
AB288,5,105 67.12 (12) (e) 2g. (intro.) Subdivision 2. applies only does not apply if the
6amount of money to be raised by the promissory note will not cause the aggregate
7amount of outstanding indebtedness of the school district incurred without a
8referendum since August 9, 1989, excluding indebtedness incurred without a
9referendum as a result of subd. 2i. and
excluding amounts specified in s. 67.05 (6a)
10(bm), to exceed $1,000,000 or an amount determined as follows, whichever is less:
AB288, s. 8 11Section 8. 67.12 (12) (e) 2i. of the statutes is created to read:
AB288,5,1712 67.12 (12) (e) 2i. Subdivision 2. does not apply if the amount of money to be
13raised by the promissory note will not cause the aggregate amount of outstanding
14indebtedness of the school district incurred without a referendum as a result of this
15subdivision since the effective date of this subdivision .... [revisor inserts date],
16excluding amounts specified in s. 67.05 (6a) (bm), to exceed an amount determined
17by multiplying the school district's membership, as defined in s. 121.004 (5), by $350.
AB288, s. 9 18Section 9. 67.12 (12) (e) 2w. of the statutes is created to read:
AB288,5,2219 67.12 (12) (e) 2w. If a school board borrows funds under this section and subd.
202. does not apply as a result of subd. 2i., the school board shall adopt a resolution
21specifying how the funds will be used. The school board may use the funds only for
22a capital expenditure that is for one or more of the following purposes:
AB288,5,2323 a. Building maintenance, remodeling or renovation.
AB288,5,2424 b. Utility costs.
AB288,5,2525 c. Educational technology.
AB288, s. 10
1Section 10. 121.91 (4) (c) 4. of the statutes is created to read:
AB288,6,92 121.91 (4) (c) 4. Funds needed for the payment of any general obligation debt
3service, including debt service on debt issued or reissued to fund or refund
4outstanding municipal obligations, interest on outstanding municipal obligations or
5the payment of related issuance costs or redemption premiums, authorized on or
6after the effective date of this subdivision .... [revisor inserts date], by a resolution
7of the school board and secured by the full faith and credit of the school district if the
8issuance of the debt was not subject to a referendum as a result of s. 67.05 (6a) (be)
9or 67.12 (12) (e) 2i.
AB288, s. 11 10Section 11. Initial applicability.
AB288,6,1411 (1) The treatment of sections 67.05 (6a) (a) 2. (intro.), (b) (intro.), (be), and (d)
12and 67.12 (12) (e) 2., 2g. (intro.), 2i., and 2w. of the statutes first applies to resolutions
13to borrow money that are adopted by a school board on the effective date of this
14subsection.
AB288, s. 12 15Section 12. Effective date.
AB288,6,1616 (1) This act takes effect on the July 1 after publication.
AB288,6,1717 (End)
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