LRB-0176/1
PG:wlj:jf
2005 - 2006 LEGISLATURE
March 3, 2005 - Introduced by Representatives Towns, Hundertmark, Mursau,
Nischke, Hines, Townsend, Gielow, Strachota, Musser, Hahn, Gunderson,
Molepske, Jeskewitz, Albers, Lehman, Petrowski, Kestell, Krawczyk, Ott
and Freese, cosponsored by Senators Olsen, Grothman, Harsdorf and
Lazich. Referred to Committee on Education.
AB167,1,4
1An Act to renumber 66.0603 (3);
to renumber and amend 66.0603 (1m) (b);
2to amend 119.04 (1); and
to create 66.0603 (1m) (b) 3. and 66.0603 (3) (b) of
3the statutes;
relating to: the investment by school districts of funds held in
4trust to provide post-employment benefits.
Analysis by the Legislative Reference Bureau
Current law restricts the manner in which a school district may invest its funds.
This bill authorizes a school district to invest and reinvest funds that are held in
trust, other than funds held in the public employee trust fund, solely to provide
post-employment benefits in the manner provided under the Uniform Prudent
Investor Act, which took effect in Wisconsin on April 30, 2004.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB167, s. 1
5Section
1. 66.0603 (1m) (b) of the statutes is renumbered 66.0603 (1m) (b) 1.
6and amended to read:
AB167,2,57
66.0603
(1m) (b) 1. A town, city, or village may invest surplus funds in any
8bonds or securities issued under the authority of the municipality, whether the bonds
1or securities create a general municipality liability or a liability of the property
2owners of the municipality for special improvements, and may sell or hypothecate
3the bonds or securities. Funds of an employer, as defined by s. 40.02 (28), in a
4deferred compensation plan may also be invested and reinvested in the same manner
5authorized for investments under s. 881.01.
AB167,2,9
62. Funds of any school district operating under ch. 119, held in trust for pension
7plans intended to qualify under section
401 (a) of the Internal Revenue Code, other
8than funds held in the public employee trust fund, may be invested and reinvested
9in the same manner as is authorized for investments under s. 881.01.
AB167, s. 2
10Section
2. 66.0603 (1m) (b) 3. of the statutes is created to read:
AB167,2,1411
66.0603
(1m) (b) 3. A school district may invest and reinvest funds that are held
12in trust, other than funds held in the public employee trust fund, solely to provide
13any of the following benefits, in the same manner as is authorized for investments
14under s. 881.01:
AB167,2,1615
a. Post-employment health care benefits provided either separately or through
16a defined benefit pension plan.
AB167,2,1817
b. Other post-employment benefits provided separately from a defined benefit
18pension plan.
AB167, s. 3
19Section
3. 66.0603 (3) of the statutes is renumbered 66.0603 (3) (a).
AB167, s. 4
20Section
4. 66.0603 (3) (b) of the statutes is created to read:
AB167,2,2521
66.0603
(3) (b) In addition to the authority granted under sub. (2), a school
22district may delegate the investment authority over the funds described under sub.
23(1m) (b) 3. to an investment manager who meets the requirements and qualifications
24specified in the trust's investment policy and who is registered as an investment
25adviser under
15 USC 80b-3.
AB167, s. 5
1Section
5. 119.04 (1) of the statutes is amended to read:
AB167,3,92
119.04
(1) Subchapters IV, V and VII of ch. 115, ch. 121 and ss. 66.0235 (3) (c),
366.0603 (1m) to (3), 115.01 (1) and (2), 115.28, 115.31, 115.33, 115.34, 115.343,
4115.345, 115.361, 115.38 (2), 115.45, 118.001 to 118.04, 118.045, 118.06, 118.07,
5118.10, 118.12, 118.125 to 118.14, 118.145 (4), 118.15, 118.153, 118.16, 118.162,
6118.163, 118.164, 118.18, 118.19, 118.20, 118.24 (1), (2) (c) to (f), (6) and (8), 118.245,
7118.255, 118.258, 118.291, 118.30 to 118.43, 118.51, 118.52, 118.55, 120.12 (5) and
8(15) to (26), 120.125, 120.13 (1), (2) (b) to (g), (3), (14), (17) to (19), (26), (34), (35) and
9(37), 120.14 and 120.25 are applicable to a 1st class city school district and board.
