SB44: Bill Text

SB44,119,12 (c) The office shall develop criteria and procedures for use in administering this subsection. Notwithstanding s. 227.10 (1), the criteria and procedures need not be promulgated as rules under ch. 227.

SB44, s. 230 Section 230. 16.964 (9) (intro.) of the statutes is created to read:

SB44,119,15 16.964 (9) (intro.) From the appropriation under s. 20.505 (6) (p), the office shall distribute the following grants for children's community programs:

SB44, s. 231 Section 231. Subchapter VII (title) of chapter 16 [precedes 16.97] of the statutes is amended to read:

SB44,119,18 CHAPTER 16

SB44,119,21 SUBCHAPTER VII EDUCATIONAL Information TECHNOLOGY

SB44, s. 232 Section 232. 16.97 of the statutes is renumbered 16.97 (intro.) and amended to read:

SB44,119,25 16.97 Definition Definitions. (intro.) In this subchapter, "telecommunications" has the meaning given in s. 22.01 (10).:

SB44, s. 233 Section 233. 16.974 (intro.) of the statutes is repealed.

SB44, s. 234 Section 234. 16.974 (1) of the statutes is amended to read:

SB44,120,8 16.974 (1) Coordinate with the technology for educational achievement in Wisconsin board department of public instruction to provide secured correctional facilities, as defined in s. 44.70 115.997 (3r), school districts, and cooperative educational service agencies with telecommunications access under s. 44.73 115.9995 and contract with telecommunications providers to provide such that access.

SB44, s. 235 Section 235. 16.974 (1) to (4) of the statutes, as affected by 2003 Wisconsin Act .... (this act), are renumbered 16.971 (13) to (16).

SB44, s. 236 Section 236. 16.974 (2) of the statutes is amended to read:

SB44,120,17 16.974 (2) Subject to s. 44.73 (5), coordinate Coordinate with the technology for educational achievement in Wisconsin board department of public instruction to provide private colleges, technical college districts, public library boards and, public library systems, and public museums with telecommunications access under s. 44.73 115.9995 and contract with telecommunications providers to provide such that access.

SB44, s. 237 Section 237. 16.974 (3) of the statutes is amended to read:

SB44,120,22 16.974 (3) Coordinate with the technology for educational achievement in Wisconsin board department of public instruction to provide private schools with telecommunications access under s. 44.73 115.9995 and contract with telecommunications providers to provide such that access.

SB44, s. 238 Section 238. 16.974 (4) of the statutes is amended to read:

SB44,121,4 16.974 (4) Coordinate with the technology for educational achievement in Wisconsin board department of public instruction to provide the Wisconsin Center for the Blind and Visually Impaired and the Wisconsin Educational Services Program for the Deaf and Hard of Hearing with telecommunications access under s. 44.73 115.9995 and contract with telecommunications providers to provide such that access.

SB44, s. 239 Section 239. 18.01 (4) (intro.) of the statutes is amended to read:

SB44,121,8 18.01 (4) (intro.) "Public debt" or "debt" means every voluntary, unconditional undertaking by the state, other than an operating note or an interest exchange agreement, to repay a sum certain:

SB44, s. 240 Section 240. 18.06 (8) (a) of the statutes is renumbered 18.06 (8) (a) (intro.) and amended to read:

SB44,121,18 18.06 (8) (a) (intro.) The At the time of, or in anticipation of, contracting public debt and at any time thereafter while the public debt is outstanding, the commission may enter into agreements and ancillary arrangements for relating to the public debt, including liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. At the time of contracting for any such agreement or ancillary arrangement, the commission shall determine all of the following, if applicable:

SB44, s. 241 Section 241. 18.06 (8) (a) 1. of the statutes is created to read:

SB44,121,22 18.06 (8) (a) 1. For any payment to be received with respect to the agreement or ancillary arrangement, whether the payment will be deposited into the bond security and redemption fund or the capital improvement fund.

SB44, s. 242 Section 242. 18.06 (8) (a) 2. of the statutes is created to read:

SB44,122,2 18.06 (8) (a) 2. For any payment to be made with respect to the agreement or ancillary arrangement, whether the payment will be made from the bond security and redemption fund or the capital improvement fund and the timing of any transfer of funds.

SB44, s. 243 Section 243. 18.07 (2) of the statutes is amended to read:

SB44,122,17 18.07 (2) Every loan agreement entered into pursuant to s. 18.06 (2) and every evidence of indebtedness given under such a loan agreement shall be executed in the name of and for the state by the secretary of the commission. Every other evidence of indebtedness shall be executed in the name of and for the state by the governor and by the state treasurer and shall be sealed with the great seal of the state or a facsimile thereof of any size, and every interest coupon appurtenant thereto shall be executed in the name of and for the state by the governor. The facsimile signature of either the governor or state treasurer or both may be imprinted in lieu of the manual signature of such officer, as the commission directs, if approved by such officer, and shall be so imprinted in the case of interest coupons. Evidence of indebtedness and interest coupons appurtenant thereto bearing the manual or facsimile signature of a person in office at the time such signature was signed or imprinted shall be fully valid notwithstanding that before or after the delivery thereof such person ceased to hold such office.

SB44, s. 244 Section 244. 18.08 (1) (a) of the statutes is renumbered 18.08 (1) (a) (intro.) is amended to read:

SB44,122,24 18.08 (1) (a) (intro.) All moneys resulting from the contracting of public debt or any payment to be received with respect to any agreement or ancillary arrangement entered into under s. 18.06 (8) (a) with respect to any such public debt shall be credited to a separate and distinct fund, established in the state treasury, designated as the capital improvement fund, except that such:

SB44,123,4 1. Such moneys which represent premium and accrued interest on bonds or notes issued, or are for purposes of funding or refunding bonds pursuant to s. 18.06 (5) shall be credited to one or more of the sinking funds of the bond security and redemption fund or to the state building trust fund.; and

SB44, s. 245 Section 245. 18.08 (1) (a) 2. of the statutes is created to read:

SB44,123,10 18.08 (1) (a) 2. Any such moneys that represent premium or any payments received pursuant to any agreement or ancillary arrangement entered into under s. 18.06 (8) (a) with respect to any such public debt may be credited to one or more of the sinking funds of the bond security and redemption fund or to the capital improvement fund as determined by the commission.

SB44, s. 246 Section 246. 18.08 (2) of the statutes is amended to read:

SB44,123,18 18.08 (2) The capital improvement fund may be expended, pursuant to appropriations, only for the purposes and in the amounts for which the public debts have been contracted, for the payment of principal and interest on loans or on notes, for the payment due, if any, under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a) with respect to any such public debt, for the purposes identified under s. 20.867 (2) (v) and (4) (q), and for expenses incurred in contracting public debt.

SB44, s. 247 Section 247. 18.08 (4) of the statutes is amended to read:

SB44,124,2 18.08 (4) If at any time it appears that there will not be on hand in the capital improvement fund sufficient moneys for the payment of principal and interest on loans or on notes or for the payment due, if any, under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a) with respect to any public debt, the department of administration shall transfer to such fund, out of the appropriation made pursuant to s. 20.866, a sum sufficient which, together with any available money on hand in such fund, is sufficient to make such payment.

SB44, s. 248 Section 248. 18.09 (2) of the statutes is amended to read:

SB44,124,9 18.09 (2) Each sinking 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 bonds giving rise to it and, premium, if any, due upon refunding redemption of any such bonds, and payment due, if any, under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a) with respect to any such bonds.

SB44, s. 249 Section 249. 18.10 (4) of the statutes is amended to read:

SB44,124,18 18.10 (4) Debt held by state. All evidence of indebtedness owned or held by any state fund shall be deemed to be outstanding in all respects and the agency having such fund under its control shall have the same rights with respect to such evidence of indebtedness as a private party, but if any sinking fund acquires bonds which gave rise to such fund, such bonds shall be deemed paid for all purposes and no longer outstanding and, together with any interest coupons appurtenant thereto, shall be canceled as provided in sub. (11). All evidence of indebtedness owned by any state fund shall be registered to the fullest extent registrable.

SB44, s. 250 Section 250. 18.10 (5) of the statutes is amended to read:

SB44,125,7 18.10 (5) Registration. The state treasurer shall act as registrar for evidence evidences of indebtedness registrable as to principal or interest or both. No transfer of a registered evidence of indebtedness is valid unless made on the register maintained by the state treasurer for that purpose, and the state shall be entitled to treat the registered owner as the owner of such instrument for all purposes. Payments of principal and interest, when registered as to interest, of registered instruments shall be by electronic funds transfer, check, share draft or other draft to the registered owner at the owner's address as it appears on the register, unless the commission has otherwise provided. Information in the register relating to the owners of evidence of indebtedness is not available for inspection and copying under s. 19.35 (1). The commission may make such other provisions respecting registration as it deems necessary or useful. The state treasurer may enter into a contract for the performance of any of his or her functions under this subsection and sub. (7).

SB44, s. 251 Section 251. 18.10 (8) of the statutes is amended to read:

SB44,126,2 18.10 (8) Trustees and fiscal agents. The commission may appoint one or more trustees and fiscal agents for each issue of bonds or notes. The state treasurer may be denominated the trustee and the sole fiscal agent or a cofiscal agent for any issue of bonds or notes. Every other such fiscal agent shall be an incorporated bank or trust company authorized by the laws of the United States or of the state in which it is located to do a banking or trust company business. The commission shall periodically require competitive proposals, under procedures established by the commission, for fiscal agent services and, in so doing, shall consult the state treasurer. There may be deposited with a trustee, in a special account administered as provided in this chapter, moneys to be used only for the purposes expressly provided in a resolution authorizing the issuance of debt or an agreement between the commission and the trustee. There may be deposited with a fiscal agent, in a special account for such purpose only, a sum estimated to be sufficient to enable such fiscal agent to pay the principal and interest on public debt which will come due not more than 15 days after the date of such deposit. The commission may make such other provisions respecting trustees and fiscal agents as it deems necessary or useful and may enter into a contract with any trustee or fiscal agent containing such terms, including compensation, and conditions in regard to the trustee or fiscal agent as it deems necessary or useful.

SB44, s. 252 Section 252. 18.51 of the statutes is amended to read:

SB44,126,8 18.51 Provisions applicable. The following sections apply to this subchapter, except that all references to "public debt" or "debt" 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 obligation": ss. 18.02, 18.03, 18.06 (8), 18.07, 18.10 (1), (2), (4) to (9) and, (11) , and (12), and 18.17.

SB44, s. 253 Section 253. 18.52 (1) of the statutes is renumbered 18.52 (1m).

SB44, s. 254 Section 254. 18.52 (1e) of the statutes is created to read:

SB44,126,14 18.52 (1e) "Ancillary payments" means payments for issuance costs and expenses, payments under contracts entered into under s. 18.55 (6), payments of accrued or funded interest, and payments of other costs and expenses of administering revenue obligations.

SB44, s. 255 Section 255. 18.53 (4) of the statutes is repealed and recreated to read:

SB44,126,19 18.53 (4) Unless otherwise provided in laws applicable to the issuance of a specific revenue obligation, in addition to the requirements established under sub. (3), the commission shall establish the amounts required for ancillary payments and establishment of reserves relating to the revenue obligations.

SB44, s. 256 Section 256. 18.54 (2) of the statutes is amended to read:

SB44,126,24 18.54 (2) The amount of evidences of revenue obligation issued or outstanding for purposes specified by the legislature under s. 18.53 (3) and (4) are subject only to the limits provided in the legislation which authorizes that revenue obligation. No refunding obligation is subject to any limitation specified by that legislation.

SB44, s. 257 Section 257. 18.55 (5) of the statutes is amended to read:

SB44,127,11 18.55 (5) Exercise of authority. Money may be borrowed and evidences of revenue obligation issued therefor pursuant to one or more authorizing resolutions, unless otherwise provided in the resolution or in this subchapter, at any time and from time to time, for any combination of purposes, in any specific amounts, at any rates of interest, for any term, payable at any intervals, at any place, in any manner and having any other terms or conditions deemed necessary or useful. Revenue obligation bonds may bear interest at variable or fixed rates, bear no interest or bear interest payable only at maturity or upon redemption prior to maturity. Unless sooner exercised or unless a shorter different period is provided in the resolution, every authorizing resolution, except as provided in s. 18.59 (1), shall expire one year after the date of its adoption.

SB44, s. 258 Section 258. 18.55 (6) of the statutes is created to read:

SB44,127,22 18.55 (6) Agreements and arrangements; delegation; use of revenue obligations. (a) At the time of, or in anticipation of, contracting revenue obligations and at any time thereafter while the revenue obligations are outstanding, the commission may enter into agreements and ancillary arrangements relating to the revenue obligations, including trust indentures, liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. Any payment made or received pursuant to any such agreements or ancillary arrangements shall be made from or deposited into a fund relating to the relevant revenue obligation, as determined by the commission.

SB44,127,25 (b) The commission may delegate to other persons the authority and responsibility to take actions necessary and appropriate to implement agreements and ancillary arrangements under par. (a).

SB44,128,2 (c) Any revenue obligations may include revenue obligations contracted to fund interest, accrued or to accrue, on the revenue obligations.

SB44, s. 259 Section 259. 18.561 (2) of the statutes is amended to read:

SB44,129,17 18.561 (2) Security interests of owners of enterprise obligations. There is a mortgage lien upon or security interest in the income and property of each revenue-producing enterprise or program for the benefit of the owners of the related enterprise obligations and other persons specified in the authorizing resolution providing for the issuance of the particular 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 or security interest until provision for payment in full of the principal of and interest of on the enterprise obligations, and other obligations specified in the authorizing resolution providing for the issuance of the particular enterprise obligations, has been made, as provided in the authorizing resolution. The lien or security interest for the benefit of the owners of the enterprise obligations and other persons specified in the authorizing resolution providing for the issuance of the particular enterprise obligations shall have priority over all conflicting security interests in the income and property of the revenue-producing enterprise or program. Any owner of such 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 of or interest of on any of such 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 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 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 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 enterprise obligations as provided by this section. Such additional issues of enterprise obligations shall be subordinate to all prior related issues of enterprise obligations which may have been made under this section, unless the legislature, in the statute authorizing the initial issue of enterprise obligations, permits the issue of additional enterprise obligations on a parity therewith a particular issue of enterprise obligations, or the authorizing resolution providing for the issuance of a particular enterprise obligation, permits the issue of additional enterprise obligations or other obligations on a parity therewith or senior thereto.

SB44, s. 260 Section 260. 18.561 (3) of the statutes is amended to read:

SB44,130,10 18.561 (3) Dedication of revenues. As accurately as possible in advance, the commission and the state department or agency carrying out program responsibilities for which enterprise obligations are to be issued shall determine, and the commission shall fix in the authorizing resolution for such 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 of and interest of on the enterprise obligations, and ancillary payments authorized to be paid from such moneys; and the proportion of the revenues which shall be available for other purposes, and shall provide that the revenues be set aside in separate funds. At Subject to the provisions and covenants of the authorizing resolution, 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.

SB44, s. 261 Section 261. 18.561 (5) of the statutes is amended to read:

SB44,131,5 18.561 (5) Redemption fund. The proportion which shall be set aside for the payment of the principal of and interest on the enterprise obligations shall from month to month as they accrue and are received and, as directed by the commission, payments to be received with respect to an agreement or ancillary arrangement entered into pursuant to s. 18.55 (6), shall, at such times as provided in the authorizing resolution, be set apart and paid into a separate fund in the treasury or in an account maintained by a trustee appointed for that purpose in the authorizing resolution 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 of and interest on the enterprise obligations giving rise to it and premium, if any, due upon redemption of any such obligations, and for other obligations that are secured by the property or income, or both, of the enterprise or program payment of obligations under an agreement or ancillary arrangement entered into under s. 18.55 (6) to the extent provided for in an authorizing resolution. 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.

SB44, s. 262 Section 262. 18.562 (1) of the statutes is renumbered 18.562 (1) (a) and amended to read:

SB44,131,14 18.562 (1) (a) There is a security interest, for the benefit of the owners of the special fund obligations and other persons specified in the authorizing resolution providing for the issuance of the particular 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, and no physical delivery, recordation, or other action is required to perfect the security interest.

SB44,131,19 (c) 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, and other obligations specified in the authorizing resolution providing for the issuance of the particular special fund obligations, has been made, as provided in the authorizing resolution.

SB44,131,22 (d) 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.

SB44, s. 263 Section 263. 18.562 (1) (b) of the statutes is created to read:

SB44,132,3 18.562 (1) (b) 1. Except as provided in subd. 2., the security interest for the benefit of the owners of the special fund obligations and other persons specified in the authorizing resolution providing for the issuance of the particular special fund obligations shall have priority over all conflicting security interests to the fees, penalties, or excise taxes that are required to be deposited in the special fund.

SB44,132,11 2. For different special fund obligations secured by the same fees, penalties, or excise taxes, priority shall be established according to the date of issuance of the special fund obligation or the incurrence of the other obligations specified in an authorizing resolution, if applicable, with earlier issuances or incurrences having priority over later issuances or incurrences, unless laws governing the issuance of a particular special fund obligation or the authorizing resolution providing for the issuance of a particular special fund obligation permit later issuances or incurrences on a parity or priority basis.

SB44, s. 264 Section 264. 18.562 (3) of the statutes is amended to read:

SB44,133,5 18.562 (3) Redemption fund. The special fund revenues that are to be set aside for the payment of the principal of and interest of on the special fund obligations and, as directed by the commission, payments to be received with respect to an agreement or ancillary arrangement entered into under s. 18.55 (6), shall be paid into a separate fund in the treasury or in an account maintained by a trustee appointed for that purpose in the authorizing resolution 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 of and interest on the special fund obligations giving rise to it and premium, if any, due upon redemption of any such obligations, and for other obligations that are secured by any fees, penalties, or excise taxes deposited in the special fund payment of obligations under an agreement or ancillary arrangement entered into under s. 18.55 (6) to the extent provided for in an authorizing resolution. 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.

SB44, s. 265 Section 265. 18.57 (1) of the statutes is amended to read:

SB44,133,24 18.57 (1) A separate and distinct fund shall be established in the state treasury or in an account maintained by a trustee appointed for that purpose by the authorizing resolution with respect to each revenue-producing enterprise or program the income from which is to be applied to the payment of any enterprise obligation. A separate and distinct fund shall be established in the state treasury or in an account maintained by a trustee appointed for that purpose by the authorizing resolution with respect to any special fund program that is created by the imposition of fees, penalties or excise taxes and is applied to the payment financed through the issuance of special fund obligations. All moneys resulting from the issuance of evidences of revenue obligation shall be credited to the appropriate fund, applied for refunding or note renewal purposes, or to make deposits to reserve funds, except that moneys which represent premium or accrued interest or, to the extent provided in the resolution authorizing the issuance of such evidences of revenue obligation, premium received on the issuance of evidences shall be credited to the appropriate redemption fund. As determined by the commission, payments to be received under an agreement or ancillary arrangement entered into under s. 18.55 (6) with respect to any such issuance of evidences of revenue obligation shall be credited to the appropriate fund.

SB44, s. 266 Section 266. 18.57 (2) of the statutes is amended to read:

SB44,134,5 18.57 (2) Moneys in such funds may be expended, pursuant to appropriations, only for the purposes and in the amounts for which borrowed, for the payment of the principal of and interest on related revenue obligations, to make deposits to reserve funds, and for expenses incurred in issuing such obligations to make ancillary payments.

SB44, s. 267 Section 267. 18.58 (2) of the statutes is repealed.

SB44, s. 268 Section 268. 18.60 (2) of the statutes is amended to read:

SB44,135,2 18.60 (2) If the commission determines to exchange refunding obligations, they may be exchanged privately for and in payment and discharge of any of the outstanding obligations or notes being refinanced. Refunding obligations may be exchanged for a like or greater principal amount of the obligations or notes being exchanged therefor except that the principal amount of the refunding obligations may exceed the principal amount of the obligations or notes being exchanged therefor only to the extent determined by the commission to be necessary or advisable to pay redemption premiums and unpaid interest to the date of exchange not otherwise provided for such principal amount of the obligations or notes being exchanged therefore as may be determined by the commission to be necessary or advisable. The owners of the obligations or notes being refunded who elect to exchange need not pay accrued interest on the refunding obligations if and to the extent that interest is accrued and unpaid on the obligations or notes being refunded and to be surrendered. If any of the obligations or notes to be refinanced are to be called for redemption, the commission shall determine which redemption dates shall be used, if more than one date is applicable and shall, prior to the issuance of the refunding obligations, provide for notice of redemption to be given in the manner and at the times required by the proceedings authorizing the outstanding obligations or notes.

SB44, s. 269 Section 269. 18.60 (3) of the statutes is amended to read:

SB44,136,8 18.60 (3) The principal proceeds from the sale of any refunding obligations shall be applied either to the immediate payment and retirement of the obligations or notes being refinanced or, if the obligations or notes have not matured and are not presently redeemable, to the creation of a trust for and shall be pledged to the payment of the obligations or notes being refinanced. If a trust is created, a separate deposit shall be made for each issue of obligations or notes being refinanced. Each deposit shall be with the state treasurer secretary of administration or a bank or trust company that is then a member of the federal deposit insurance corporation. If the total amount of any deposit, including money other than sale proceeds but legally available for such purpose, is less than the principal amount of the obligations or notes being refinanced and for the payment of which the deposit has been created and pledged, together with applicable redemption premiums and interest accrued and to accrue to maturity or to the date of redemption, then the application of the sale proceeds shall be legally sufficient only if the money deposited is invested in securities issued by the United States or one of its agencies, or securities fully guaranteed by the United States, and only if the principal amount of the securities at maturity and the income therefrom to maturity will be sufficient and available, without the need for any further investment or reinvestment, to pay at maturity or upon redemption the principal amount of the obligations or notes being refinanced together with applicable redemption premiums and interest accrued and to accrue to maturity or to the date of redemption. The income from the principal proceeds of the securities shall be applied solely to the payment of the principal of and interest and redemption premiums on the obligations or notes being refinanced, but provision may be made for the pledging and disposition of any surplus. Nothing in this subsection shall be construed as a limitation on the duration of any deposit in trust for the retirement of obligations or notes being refinanced, but which have not matured and which are not presently redeemable. Nothing in this subsection shall be construed to prohibit reinvestment of the income of a trust if the reinvestments will mature at such times that sufficient cash will be available to pay interest, applicable premiums, and principal on the obligations or notes being refinanced.

SB44, s. 270 Section 270. 18.61 (5) of the statutes is amended to read:

SB44,136,19 18.61 (5) The legislature may provide, with respect to any specific issue of revenue obligations, prior to their issuance, that if the special fund income or the enterprise or program income pledged to the payment of the principal of and interest of on the issue is insufficient for that purpose, or is insufficient to replenish a reserve fund, if applicable, it will consider supplying the deficiency by appropriation of funds, from time to time, out of the treasury. If the legislature so provides, the commission may make the necessary provisions therefor in the authorizing resolution and other proceedings of the issue. Thereafter, if the contingency occurs, recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that it shall make such appropriation.