SB366: Bill Text

SB366,12,16 (a) The state, the investment board, public officers, municipal corporations, political subdivisions, and public bodies.

SB366,12,20 (b) Banks and bankers, savings and loan associations, credit unions, trust companies, savings banks and institutions, investment companies, insurance companies, insurance associations, and other persons carrying on a banking or insurance business.

SB366,12,21 (c) Personal representatives, guardians, trustees, and other fiduciaries.

SB366,13,6 (9) Moral obligation pledge. If the board considers it necessary or desirable to do so, it may express in a resolution authorizing appropriation bonds its expectation and aspiration to make timely appropriations sufficient to pay the principal and interest due with respect to such appropriation bonds, to make deposits into a reserve fund created under sub. (4) (a) with respect to such appropriation bonds, to make payments under any agreement or ancillary arrangement entered into under s. 59.86 with respect to such appropriation bonds, to make deposits into any stabilization fund established or continued under s. 59.87 with respect to such appropriation bonds, or to pay related issuance or administrative expenses.

SB366,13,9 (10) Pension study committee. The 2 public members of the pension study committee, created by chapter 405, laws of 1965, shall have at least 10 years of financial experience.

SB366,13,11 (11) Applicability. This section does not apply if a county does not issue appropriation bonds as authorized under sub. (2).

SB366, s. 3 Section 3. 59.86 of the statutes is created to read:

SB366,13,25 59.86 Agreements and ancillary arrangements for certain notes and appropriation bonds. At the time of issuance or in anticipation of the issuance of appropriation bonds under s. 59.85, or general obligation promissory notes under s. 67.12 (12), to pay unfunded prior service liability with respect to an employee retirement system, or at any time thereafter so long as the appropriation bonds or general obligation promissory notes are outstanding, a county having a population of 500,000 or more may enter into agreements or ancillary arrangements relating to the appropriation bonds or general obligation promissory notes, including trust indentures, liquidity facilities, remarketing or dealer agreements, letters of credit, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, and interest exchange agreements. Any payments made or amounts received with respect to any such agreement or ancillary arrangement shall be made from or deposited as provided in the agreement or ancillary arrangement.

SB366, s. 4 Section 4. 59.87 of the statutes is created to read:

SB366,14,3 59.87 Employee retirement system liability financing in populous counties; additional powers. (1) Definitions. In this section:

SB366,14,4 (a) "Board" means the county board of supervisors in any county.

SB366,14,5 (b) "County" means any county having a population of 500,000 or more.

SB366,14,8 (c) "Pension funding plan" means a strategic and financial plan related to the payment of all or part of a county's unfunded prior service liability with respect to an employee retirement system.

SB366,14,10 (d) "Trust" means a common law trust organized under the laws of this state, by the county, as settlor, pursuant to a formal, written, declaration of trust.

SB366,14,13 (2) Special financing entities, funds, and accounts. (a) To facilitate a pension funding plan and in furtherance thereof, a board may create one or more of the following:

SB366,14,14 1. A trust.

SB366,14,15 2. A nonstock corporation under ch. 181.

SB366,14,16 3. A limited liability company under ch. 183.

SB366,14,17 4. A special fund or account of the county.

SB366,14,23 (b) An entity described under par. (a) has all of the powers provided to it under applicable law and the documents pursuant to which it is created and established. The powers shall be construed broadly in favor of effectuating the purposes for which the entity is created. A county may appropriate funds to such entities and to such funds and accounts, under terms and conditions established by the board, consistent with the purposes for which they are created and established.

SB366,15,5 (3) Stabilization funds. (a) To facilitate a pension funding plan a board may establish a stabilization fund. Any such fund may be created as a trust, a special fund or account of the county established by a separate resolution or ordinance, or a fund or account created under an authorizing resolution or trust indenture in connection with the authorization and issuance of appropriation bonds under s. 59.85 or general obligation promissory notes under s. 67.12 (12). A county may appropriate funds for deposit to a stabilization fund established under this subsection.

SB366,15,20 (b) Moneys in a stabilization fund established under this subsection may be used, subject to annual appropriation by the board, solely to pay principal or interest on appropriation bonds issued under s. 59.85 and general obligation promissory notes under s. 67.12 (12) issued in connection with a pension funding plan, for the redemption or repurchase of such appropriation bonds or general obligation promissory notes, to make payments under any agreement or ancillary arrangement entered into under s. 59.86 with respect to such appropriation bonds or general obligation promissory notes, or to pay annual pension costs other than normal costs. Moneys on deposit in a stabilization fund may not be subject to any claims, demands, or actions by, or transfers or assignments to, any creditor of the county, any beneficiary of the county's employee retirement system, or any other person, on terms other than as may be established in the resolution or ordinance creating the stabilization fund. Moneys on deposit in a stabilization fund established under this subsection may be invested and reinvested in the manner directed by the board or pursuant to delegation by the board as provided under s. 66.0603 (5).

SB366, s. 5 Section 5. 66.0602 (3) (d) 3. of the statutes is created to read:

SB366,16,3 66.0602 (3) (d) 3. The limit otherwise applicable under this section does not apply to amounts levied by a county having a population of 500,000 or more for the payment of debt service on appropriation bonds issued under s. 59.85, including debt service on appropriation bonds issued to fund or refund outstanding appropriation bonds of the county, to pay related issuance costs or redemption premiums, or to make payments with respect to agreements or ancillary arrangements authorized under s. 59.86.

SB366, s. 6 Section 6. 66.0603 (1m) (e) of the statutes is created to read:

SB366,16,10 66.0603 (1m) (e) Subject to s. 67.11 (2) with respect to funds on deposit in a debt service fund for general obligation promissory notes issued under s. 67.12 (12), a county having a population of 500,000 or more, or a person to whom the county has delegated investment authority under sub. (5), may invest and reinvest in the same manner as is authorized for investments and reinvestments under s. 881.01, any of the following:

SB366,16,11 1. Moneys held in any stabilization fund established under s. 59.87 (3).

SB366,16,15 2. Moneys held in a fund or account, including any reserve fund, created in connection with the issuance of appropriation bonds under s. 59.85 or general obligation promissory notes under s. 67.12 (12) issued to provide funds for the payment of all or a part of the county's unfunded prior service liability.

SB366,16,17 3. Moneys appropriated or held by the county to pay debt service on appropriation bonds or general obligation promissory notes under s. 67.12 (12).

SB366,16,20 4. Moneys constituting proceeds of appropriation bonds or general obligation promissory notes described in subd. 2. that are available for investment until they are spent.

SB366,16,21 5. Moneys held in an employee retirement system of the county.

SB366, s. 7 Section 7. 66.0603 (5) of the statutes is created to read:

SB366,17,4 66.0603 (5) Delegation of investment authority in connection with pension financing in populous counties. The governing board of a county having a population of 500,000 or more may delegate investment authority over any of the moneys described in sub. (1m) (e) to any of the following persons, which shall be responsible for the general administration and proper operation of the county's employee retirement system, subject to the board's finding that such person has expertise in the field of investments:

SB366,17,5 (a) A public board that is organized for such purpose under county ordinances.

SB366,17,6 (b) A trustee, investment advisor, or investment banking or consulting firm.

SB366, s. 8 Section 8. 67.01 (9) (intro.) of the statutes is amended to read:

SB366,17,9 67.01 (9) (intro.) This chapter is not applicable to appropriation bonds issued by a county under s. 59.85 and, except ss. 67.08 (1), 67.09 and 67.10, is not applicable:

SB366, s. 9 Section 9. 67.04 (5) (b) 4. of the statutes is amended to read:

SB366,17,14 67.04 (5) (b) 4. To pay unfunded prior service liability contributions under the Wisconsin retirement system, or to pay unfunded prior service liability with respect to an employee retirement system, if all of the net proceeds of the note will be used to pay for such contributions or payments.

SB366, s. 10 Section 10. 67.045 (1) (g) of the statutes is created to read:

SB366,17,18 67.045 (1) (g) The debt is issued by a county having a population of 500,000 or more to pay unfunded prior service liability with respect to an employee retirement system.

SB366, s. 11 Section 11. 67.12 (12) (a) of the statutes is amended to read:

SB366,18,4 67.12 (12) (a) Any municipality may issue promissory notes as evidence of indebtedness for any public purpose, as defined in s. 67.04 (1) (b), including but not limited to paying any general and current municipal expense, and refunding any municipal obligations, including interest on them. Each note, plus interest if any, shall be repaid within 10 years after the original date of the note, except that notes issued under this section for purposes of ss. 119.498, 145.245 (12m), 281.58, 281.59, 281.60, and 281.61, or issued to raise funds to pay a portion of the capital costs of a metropolitan sewerage district, or issued by a county having a population of 500,000 or more to pay unfunded prior service liability with respect to an employee retirement system shall be repaid within 20 years after the original date of the note.

SB366,18,5 (End)