AB327: Bill Text

AB327,155,9 (4) Expenses. If the court finds that a party to an action under sub. (1) has acted arbitrarily, vexatiously, or in bad faith, the court may award reasonable expenses, including attorney fees and disbursements, to any of the other parties.

AB327,155,11 (5) Venue. An action under sub. (1) shall be brought in the circuit court for the county where the registered address of the cooperative is located.

AB327,155,13 (6) Parties. It is not necessary to make members parties to an action under sub. (1).

AB327,155,17 193.935 Procedure in involuntary or court-supervised voluntary dissolution. (1) Action before hearing. In a dissolution conducted under the supervision of a court under s. 193.925 or in any action under s. 193.931 (1) the court may take any of the following actions before an initial hearing is completed:

AB327,155,18 (a) Issue injunctions.

AB327,155,20 (b) Appoint receivers temporarily, until the conclusion of a hearing under sub. (2), with all powers and duties that the court directs.

AB327,155,21 (c) Take actions required to preserve the cooperative's assets wherever located.

AB327,155,22 (d) Carry on the business of the cooperative.

AB327,156,5 (2) Appointment of receiver. In a dissolution conducted under the supervision of a court under s. 193.925 or in any action under s. 193.931 (1) the court may appoint a receiver after a hearing is completed, following notice to the parties as directed by the court. The receiver shall collect the cooperative's assets and amounts owing to the cooperative by subscribers on account of an unpaid portion of the consideration for the issuance of shares. Subject to the order of the court, the receiver may continue the business of the cooperative and lease or dispose of the property and assets of the cooperative at public or private sale.

AB327,156,10 (3) Distribution of assets. In a dissolution conducted under the supervision of a court under s. 193.925 or in any action under s. 193.931 (1), the court shall apply the assets of the cooperative and the proceeds resulting from the lease or disposition of the cooperative's property by following all of the following steps, in alphanumerical order:

AB327,156,13 (a) Applying the assets and proceeds to cover attorney fees and disbursements made in connection with the proceedings and the other costs and expenses of the proceedings.

AB327,156,15 (b) Applying the assets and proceeds to cover debts, taxes, and assessments owing to the United States, this state, and other states, in that order.

AB327,156,20 (c) Applying the assets and proceeds to cover worker's compensation claims for which the cooperative is liable under ch. 102, except that this paragraph does not apply to a claim if, at the time of injury, as defined in s. 102.01 (2) (g), the cooperative had in force a policy of worker's compensation insurance as required under s. 102.28 (2) (a).

AB327,156,22 (d) Applying the assets and proceeds to cover claims of employees for services performed within 3 months preceding the appointment of the receiver, if any.

AB327,156,23 (e) Applying the assets and proceeds to cover other claims proved and allowed.

AB327,156,25 (f) Distributing the assets and proceeds to the members or pursuant to a liquidation plan approved by the members.

AB327,157,5 193.941 Receiver qualifications and powers. (1) Qualifications. A receiver appointed under s. 193.935 (1) or (2) shall be an individual, a domestic business entity, or a foreign business entity authorized to transact business in this state and shall give a bond as directed by the court with the sureties required by the court.

AB327,157,6 (2) Powers. A receiver may bring and defend suits.

AB327,157,12 193.951 Filing claims in involuntary or court-supervised voluntary dissolution proceedings. (1) Filing under oath. In a dissolution conducted under the supervision of a court under s. 193.925 or in any action under s. 193.931 (1), the court may require all creditors and claimants of the cooperative to file their claims, under oath and in a form prescribed by the court, with the court or with a receiver appointed under s. 193.935 (1) or (2).

AB327,157,15 (2) Date to file a claim; notice. If the court requires the filing of claims in a dissolution conducted under the supervision of a court under s. 193.925 or in any action under s. 193.931 (1), the court shall do all of the following:

AB327,157,17 (a) Set a date at least 120 days after the date the order is filed, as the last day for the filing of claims.

AB327,157,19 (b) Prescribe a notice of the fixed date that shall be given to creditors and claimants.

AB327,157,24 (3) Claims barred; extension of time for filing. The court may prohibit any person who fails to file a claim before the date established under sub. (2) (a) from claiming an interest in or receiving payment out of the property and assets of the cooperative. At any time before the date established under sub. (2) (a), the court may extend the time for filing claims beyond the date established under sub. (2) (a).

AB327,158,6 193.955 Discontinuance of court-supervised dissolution proceedings. A dissolution conducted under the supervision of a court under s. 193.925 or any action under s. 193.931 (1) may be discontinued at any time during the dissolution proceedings if it is established that cause for dissolution does not exist. The court shall dismiss the proceedings and direct the receiver appointed under s. 193.935 (1) or (2), if any, to deliver to the cooperative its remaining property and assets.

AB327,158,10 193.961 Order of dissolution. (1) Issuance; effective date. After distribution of a cooperative's assets and proceeds under s. 193.935 (3), the court shall issue an order dissolving the cooperative. The dissolution is effective upon issuance of the order.

AB327,158,13 (2) Filing. After the court issues an order under sub. (1), the court shall file a certified copy of the order with the department. The department may not charge a fee for filing the order.

AB327,158,19 193.971 Barring of claims. (1) Claims barred. Except as provided in s. 193.951 (3), a creditor or claimant who does not file a claim or bring an action during the pendency of the dissolution proceedings or has not brought an action before the commencement of the dissolution proceedings, and all those claiming through or under the creditor or claimant, are forever barred from bringing an action to collect on that claim or otherwise enforcing it, except as provided in this section.

AB327,159,2 (2) Certain claims allowed for good cause. Except as provided in s. 193.951 (3), within one year after the date on which the articles of dissolution are filed under s. 193.905 (5) or an order of dissolution is issued under s. 193.961, a creditor or claimant who shows good cause for not having previously filed the claim may apply to the circuit court to allow a claim against the cooperative's undistributed assets or, if the undistributed assets are not sufficient to satisfy the claim, against a person to the extent of the distributions received by that person in the dissolution by virtue of that person's status as a member.

AB327,159,7 (3) Certain omitted claims allowed. A person to whom is owed a debt, obligation, or liability incurred during an action under s. 193.931 (1), but who is not paid before the distribution of assets and proceeds under s. 193.935 (3) (f), may bring an action to recover on the claim against the officers, directors, or members of the cooperative before the expiration of the applicable statute of limitations.

AB327, s. 90 Section 90. 196.01 (5) (b) 1. of the statutes is amended to read:

AB327,159,11 196.01 (5) (b) 1. A cooperative association organized under ch. 185 or 193 for the purpose of producing or furnishing heat, light, power or water to its members only.

AB327, s. 91 Section 91. 196.01 (10) of the statutes is amended to read:

AB327,159,18 196.01 (10) "Telecommunications utility" means any person, corporation, company, cooperative, unincorporated cooperative association, partnership, association and lessees, trustees or receivers appointed by any court that owns, operates, manages or controls any plant or equipment used to furnish telecommunications services within the state directly or indirectly to the public. "Telecommunications utility" does not include a telecommunications carrier.

AB327, s. 92 Section 92. 196.02 (2) of the statutes is amended to read:

AB327,160,3 196.02 (2) Definition; classification. In this subsection, "public utility" does not include a telecommunications cooperative, an unincorporated telecommunications cooperative association, or a small telecommunications utility except as provided under s. 196.205 or 196.215 (2) and does not include an alternative telecommunications utility. The commission shall provide for a comprehensive classification of service for each public utility. The classification may take into account the quantity used, the time when used, the purpose for which used, and any other reasonable consideration. Each public utility shall conform its schedules of rates, tolls and charges to such classification.

AB327, s. 93 Section 93. 196.025 (5) (ag) of the statutes is amended to read:

AB327,160,7 196.025 (5) (ag) In this subsection, "electric cooperative" means a cooperative association organized under ch. 185 or 193 for the purpose of generating, distributing or furnishing electric energy at retail or wholesale to its members only.

AB327, s. 94 Section 94. 196.09 (1) of the statutes is amended to read:

AB327,160,19 196.09 (1) In this section, "public utility" does not include a telecommunications cooperative or an unincorporated telecommunications cooperative association except as provided under s. 196.205. In subs. (2) to (7), "public utility" does not include a telecommunications utility. Subsection (9) only applies to a telecommunications utility. Every public utility shall file with the commission, within such time as may be required by the commission, its estimate of the annual rate of depreciation required for each of its classes of fixed capital used for public utility purposes, and of the composite annual rate of depreciation required for such fixed capital as an aggregate, which shall constitute the public utility's estimates of the amount which should be returned to it out of its rates for service, to meet the depreciation of its property.

AB327, s. 95 Section 95. 196.11 (2) of the statutes is amended to read:

AB327,161,3 196.11 (2) Any arrangement under this section shall be under the supervision and regulation of the commission. The commission may order any rate, charge or regulation which the commission deems necessary to give effect to the arrangement. The commission may make any change in a rate, charge or regulation as the commission determines is necessary and reasonable and may revoke its approval and amend or rescind all orders relative to any arrangement. This subsection does not apply to telecommunications cooperatives, unincorporated telecommunications cooperative associations, or telecommunications utilities.

AB327, s. 96 Section 96. 196.20 (3) of the statutes is amended to read:

AB327,161,8 196.20 (3) Except as provided in subs. (1m) and (5) (a), this section does not apply to telecommunications cooperatives, unincorporated telecommunications cooperative associations, or small telecommunications utilities unless made subject to this section under s. 196.205 or 196.215 (2).

AB327, s. 97 Section 97. 196.20 (4) (a) 2. of the statutes is amended to read:

AB327,161,18 196.20 (4) (a) 2. "Electric public utility" means a public utility whose purpose is the generation, transmission, delivery or furnishing of electric power but does not include a public utility owned and operated wholly by a municipality or, cooperative, or an unincorporated cooperative association and does not include any public utility which purchases, under federal or state approved wholesale rates, more than 50% of its electric power requirements from other than an affiliated interest as defined under s. 196.52. "Electric public utility" does not include any Class A utility, as defined under s. 199.03 (4), whose electric generation equipment has a total capacity of less than 30 megawatts.

AB327, s. 98 Section 98. 196.205 (1m) of the statutes is amended to read:

AB327,161,23 196.205 (1m) A telecommunications cooperative or an unincorporated telecommunications cooperative association may elect to be subject to ss. 196.28 and 196.37 as they apply to any rate, toll or charge and to ss. 196.02 (2), 196.09 (1), 196.11 (2), 196.20 and 196.26 in any of the following ways:

AB327,161,25 (a) By amendment of the articles of incorporation of the cooperative under s. 185.51 or the articles of organization of the association under s. 193.221.

AB327,162,2 (c) By a majority of the voting members of the board of directors of the cooperative or association.

AB327, s. 99 Section 99. 196.205 (2) of the statutes is amended to read:

AB327,162,7 196.205 (2) Notwithstanding sub. (1m), a telecommunications cooperative or an unincorporated telecommunications cooperative association shall be subject to s. 196.26 if it is a party in a proceeding on a complaint specified in s. 196.26 (1) (b) or (c).

AB327, s. 100 Section 100. 196.26 (4) (a) of the statutes is amended to read:

AB327,162,14 196.26 (4) (a) This section does not apply to any rate, toll, charge or schedule of any telecommunications cooperative or unincorporated telecommunications cooperative association, except as provided under s. 196.205 or unless at least 5% of the customers of the telecommunications cooperative or association file a complaint with the commission that the rate, toll, charge or schedule is in any respect unreasonable, insufficient or unjustly discriminatory.

AB327, s. 101 Section 101. 196.28 (4) of the statutes is amended to read:

AB327,162,19 196.28 (4) This section does not apply to rates, tolls or charges of a telecommunications cooperative, an unincorporated telecommunications cooperative association, or a small telecommunications utility except as provided in s. 196.205 or 196.215 (2).

AB327, s. 102 Section 102. 196.37 (4) of the statutes is amended to read:

AB327,162,24 196.37 (4) This section does not apply to rates, tolls or charges of a telecommunications cooperative, an unincorporated telecommunications cooperative association, or a small telecommunications utility except as provided in s. 196.205 or 196.215 (2).

AB327, s. 103 Section 103. 196.374 (1) (c) of the statutes is amended to read:

AB327,163,4 196.374 (1) (c) "Utility" means a Class A gas or electric utility, as defined by the commission, but does not include a municipal utility, as defined in s. 16.957 (1) (q), a municipal electric company, as defined in s. 66.0825 (3) (d), or a cooperative association organized under ch. 185 or 193.

AB327, s. 104 Section 104. 196.378 (1) (k) of the statutes is amended to read:

AB327,163,10 196.378 (1) (k) "Retail electric cooperative" means a cooperative association organized under ch. 185 or 193 that sells electricity at retail to its members only. For purposes of this paragraph, a cooperative association is not considered to sell electricity at retail solely on the basis of its ownership or operation of a retail electric distribution system.

AB327, s. 105 Section 105. 196.485 (1) (b) of the statutes is amended to read:

AB327,163,13 196.485 (1) (b) "Cooperative" means a cooperative association organized under ch. 185 or 193.

AB327, s. 106 Section 106. 196.49 (2) of the statutes is amended to read:

AB327,164,5 196.49 (2) No public utility may begin the construction, installation or operation of any new plant, equipment, property or facility, nor the construction or installation of any extension, improvement or addition to its existing plant, equipment, property, apparatus or facilities unless the public utility has complied with any applicable rule or order of the commission and with s. 281.35, if applicable. If a cooperative association has been incorporated under ch. 185 or 193 for the production, transmission, delivery or furnishing of light or power and has filed with the commission a map of the territory to be served by the association and a statement showing that a majority of the prospective consumers in the area are included in the project, no public utility may begin any such construction, installation or operation within the territory until after the expiration of 6 months from the date of filing the map and notice. If the cooperative association has entered into a loan agreement with any federal agency for the financing of its proposed system and has given written notice of the agreement to the commission, no public utility may begin any construction, installation or operation within the territory until 12 months after the date of the loan agreement.

AB327, s. 107 Section 107. 196.491 (1) (bm) of the statutes is amended to read:

AB327,164,9 196.491 (1) (bm) "Cooperative association" means a cooperative association organized under ch. 185 or 193 for the purpose of generating, distributing or furnishing electric energy at retail or wholesale to its members only.

AB327, s. 108 Section 108. 196.491 (4) (b) 1. of the statutes is amended to read:

AB327,164,13 196.491 (4) (b) 1. The person is not a public utility or a cooperative association organized under ch. 185 or 193 for the purpose of generating, distributing or furnishing electric energy at retail or wholesale to its members only.

AB327, s. 109 Section 109. 196.495 (1m) (intro.) of the statutes is amended to read:

AB327,164,17 196.495 (1m) (intro.) No public utility, and no cooperative association organized under ch. 185 or 193 for the purpose of furnishing electric service to its members only, may:

AB327, s. 110 Section 110. 196.495 (2) of the statutes is amended to read:

AB327,165,4 196.495 (2) If a public utility is rendering electric service under an indeterminate permit to a city or village, no cooperative association or unincorporated cooperative association may extend any new electric service to the premises of any person inside the corporate limits, existing on January 1, 1961, of the city or village without the written consent of the public utility. Within any area annexed to a city or village after January 1, 1961, in which annexed area a cooperative association, an unincorporated cooperative association, or a public utility, other than the public utility serving the city or village under an indeterminate permit, has electric distribution facilities at the time of the annexation, the cooperative association or other public utility may make a primary voltage extension or a secondary voltage extension in the annexed area, subject to sub. (1m).

AB327, s. 111 Section 111. 196.495 (2m) of the statutes is amended to read:

AB327,165,10 196.495 (2m) The distribution service facilities of a cooperative association, an unincorporated cooperative association, or a public utility rendering electric service in an annexed area under sub. (2) shall be subject to acquisition under ch. 197 by a city or village if the city or village operates or proposes to operate its own electric public utility.

AB327, s. 112 Section 112. 196.495 (3) of the statutes is amended to read:

AB327,165,15 196.495 (3) Nothing in this section shall preclude any public utility or any cooperative association or unincorporated cooperative association from extending electric service to its own property or facilities or to another cooperative association or unincorporated cooperative association for resale.

AB327, s. 113 Section 113. 196.495 (4) of the statutes is amended to read:

AB327,165,22 196.495 (4) To avoid duplication of facilities, a public utility and a cooperative association or an unincorporated cooperative association may enter into a written agreement governing the extension of electric distribution lines and the right to serve customers. The commission shall enforce an agreement if the agreement has been filed with the commission and approved by the commission as being in the public interest.

AB327, s. 114 Section 114. 196.495 (5) of the statutes is amended to read:

AB327,166,5 196.495 (5) If an interested party files a complaint with the commission that an electric public utility or a cooperative association or an unincorporated cooperative association has made a primary voltage extension that requires approval or consent under this section without obtaining approval or consent, the commission shall hear the complaint upon notice to the interested parties. If the commission determines that the primary voltage extension was made in violation of this section, it shall order the prompt removal of the primary voltage extension.

AB327, s. 115 Section 115. 196.495 (6) of the statutes is amended to read:

AB327,166,9 196.495 (6) A cooperative association or an unincorporated cooperative association shall be subject to the authority of the commission to enforce the provisions of this section and to issue rules and orders relating to the provisions.

AB327, s. 116 Section 116. 196.495 (7) of the statutes is amended to read:

AB327,166,15 196.495 (7) A cooperative association or an unincorporated cooperative association shall be subject to the authority of the commission to allocate, assess and collect expenditures of the commission against a cooperative association or an unincorporated cooperative association involved in a proceeding under this section in the same manner as provided for public utilities under s. 196.85.

AB327, s. 117 Section 117. 196.50 (2) (b) of the statutes is amended to read:

AB327,167,2 196.50 (2) (b) A certificate, franchise, license or permit, indeterminate or otherwise, in effect on September 1, 1994, for a telecommunications utility shall remain in effect and shall have the effect of a certificate of authority. A telecommunications utility is not required to apply for a new certificate of authority to continue offering or providing service to the extent of the prior authorization. Each telecommunications utility, including telecommunications cooperatives and unincorporated telecommunications cooperative associations, shall have on file with the commission under s. 196.19 a tariff that sets forth the rates, terms and conditions for all services provided and a map that defines the geographical limits of the service territory that the telecommunications utility is obliged to serve.

AB327, s. 118 Section 118. 196.52 (9) (g) of the statutes is amended to read:

AB327,167,9 196.52 (9) (g) Nothing in this subsection prohibits a cooperative association organized under ch. 185 or 193, a municipal utility, as defined in s. 196.377 (2) (a) 3., or a municipal electric company, as defined in s. 66.0825 (3) (d), from acquiring an interest in an electric generating facility that is constructed pursuant to a leased generation contract or from acquiring an interest in land on which such an electric generating facility is located.