SB366,12,1615 (a) The state, the investment board, public officers, municipal corporations,
16political subdivisions, and public bodies.
SB366,12,2017 (b) Banks and bankers, savings and loan associations, credit unions, trust
18companies, savings banks and institutions, investment companies, insurance
19companies, insurance associations, and other persons carrying on a banking or
20insurance business.
SB366,12,2121 (c) Personal representatives, guardians, trustees, and other fiduciaries.
SB366,13,6 22(9) Moral obligation pledge. If the board considers it necessary or desirable
23to do so, it may express in a resolution authorizing appropriation bonds its
24expectation and aspiration to make timely appropriations sufficient to pay the
25principal and interest due with respect to such appropriation bonds, to make

1deposits into a reserve fund created under sub. (4) (a) with respect to such
2appropriation bonds, to make payments under any agreement or ancillary
3arrangement entered into under s. 59.86 with respect to such appropriation bonds,
4to make deposits into any stabilization fund established or continued under s. 59.87
5with respect to such appropriation bonds, or to pay related issuance or
6administrative expenses.
SB366,13,9 7(10) Pension study committee. The 2 public members of the pension study
8committee, created by chapter 405, laws of 1965, shall have at least 10 years of
9financial experience.
SB366,13,11 10(11) Applicability. This section does not apply if a county does not issue
11appropriation bonds as authorized under sub. (2).
SB366, s. 3 12Section 3. 59.86 of the statutes is created to read:
SB366,13,25 1359.86 Agreements and ancillary arrangements for certain notes and
14appropriation bonds.
At the time of issuance or in anticipation of the issuance of
15appropriation bonds under s. 59.85, or general obligation promissory notes under s.
1667.12 (12), to pay unfunded prior service liability with respect to an employee
17retirement system, or at any time thereafter so long as the appropriation bonds or
18general obligation promissory notes are outstanding, a county having a population
19of 500,000 or more may enter into agreements or ancillary arrangements relating to
20the appropriation bonds or general obligation promissory notes, including trust
21indentures, liquidity facilities, remarketing or dealer agreements, letters of credit,
22insurance policies, guaranty agreements, reimbursement agreements, indexing
23agreements, and interest exchange agreements. Any payments made or amounts
24received with respect to any such agreement or ancillary arrangement shall be made
25from or deposited as provided in the agreement or ancillary arrangement.
SB366, s. 4
1Section 4. 59.87 of the statutes is created to read:
SB366,14,3 259.87 Employee retirement system liability financing in populous
3counties; additional powers.
(1) Definitions. In this section:
SB366,14,44 (a) "Board" means the county board of supervisors in any county.
SB366,14,55 (b) "County" means any county having a population of 500,000 or more.
SB366,14,86 (c) "Pension funding plan" means a strategic and financial plan related to the
7payment of all or part of a county's unfunded prior service liability with respect to
8an employee retirement system.
SB366,14,109 (d) "Trust" means a common law trust organized under the laws of this state,
10by the county, as settlor, pursuant to a formal, written, declaration of trust.
SB366,14,13 11(2) Special financing entities, funds, and accounts. (a) To facilitate a pension
12funding plan and in furtherance thereof, a board may create one or more of the
13following:
SB366,14,1414 1. A trust.
SB366,14,1515 2. A nonstock corporation under ch. 181.
SB366,14,1616 3. A limited liability company under ch. 183.
SB366,14,1717 4. A special fund or account of the county.
SB366,14,2318 (b) An entity described under par. (a) has all of the powers provided to it under
19applicable law and the documents pursuant to which it is created and established.
20The powers shall be construed broadly in favor of effectuating the purposes for which
21the entity is created. A county may appropriate funds to such entities and to such
22funds and accounts, under terms and conditions established by the board, consistent
23with the purposes for which they are created and established.
SB366,15,5 24(3) Stabilization funds. (a) To facilitate a pension funding plan a board may
25establish a stabilization fund. Any such fund may be created as a trust, a special fund

1or account of the county established by a separate resolution or ordinance, or a fund
2or account created under an authorizing resolution or trust indenture in connection
3with the authorization and issuance of appropriation bonds under s. 59.85 or general
4obligation promissory notes under s. 67.12 (12). A county may appropriate funds for
5deposit to a stabilization fund established under this subsection.
SB366,15,206 (b) Moneys in a stabilization fund established under this subsection may be
7used, subject to annual appropriation by the board, solely to pay principal or interest
8on appropriation bonds issued under s. 59.85 and general obligation promissory
9notes under s. 67.12 (12) issued in connection with a pension funding plan, for the
10redemption or repurchase of such appropriation bonds or general obligation
11promissory notes, to make payments under any agreement or ancillary arrangement
12entered into under s. 59.86 with respect to such appropriation bonds or general
13obligation promissory notes, or to pay annual pension costs other than normal costs.
14Moneys on deposit in a stabilization fund may not be subject to any claims, demands,
15or actions by, or transfers or assignments to, any creditor of the county, any
16beneficiary of the county's employee retirement system, or any other person, on
17terms other than as may be established in the resolution or ordinance creating the
18stabilization fund. Moneys on deposit in a stabilization fund established under this
19subsection may be invested and reinvested in the manner directed by the board or
20pursuant to delegation by the board as provided under s. 66.0603 (5).
SB366, s. 5 21Section 5. 66.0602 (3) (d) 3. of the statutes is created to read:
SB366,16,322 66.0602 (3) (d) 3. The limit otherwise applicable under this section does not
23apply to amounts levied by a county having a population of 500,000 or more for the
24payment of debt service on appropriation bonds issued under s. 59.85, including debt
25service on appropriation bonds issued to fund or refund outstanding appropriation

1bonds of the county, to pay related issuance costs or redemption premiums, or to
2make payments with respect to agreements or ancillary arrangements authorized
3under s. 59.86.
SB366, s. 6 4Section 6. 66.0603 (1m) (e) of the statutes is created to read:
SB366,16,105 66.0603 (1m) (e) Subject to s. 67.11 (2) with respect to funds on deposit in a debt
6service fund for general obligation promissory notes issued under s. 67.12 (12), a
7county having a population of 500,000 or more, or a person to whom the county has
8delegated investment authority under sub. (5), may invest and reinvest in the same
9manner as is authorized for investments and reinvestments under s. 881.01, any of
10the following:
SB366,16,1111 1. Moneys held in any stabilization fund established under s. 59.87 (3).
SB366,16,1512 2. Moneys held in a fund or account, including any reserve fund, created in
13connection with the issuance of appropriation bonds under s. 59.85 or general
14obligation promissory notes under s. 67.12 (12) issued to provide funds for the
15payment of all or a part of the county's unfunded prior service liability.
SB366,16,1716 3. Moneys appropriated or held by the county to pay debt service on
17appropriation bonds or general obligation promissory notes under s. 67.12 (12).
SB366,16,2018 4. Moneys constituting proceeds of appropriation bonds or general obligation
19promissory notes described in subd. 2. that are available for investment until they
20are spent.
SB366,16,2121 5. Moneys held in an employee retirement system of the county.
SB366, s. 7 22Section 7. 66.0603 (5) of the statutes is created to read:
SB366,17,423 66.0603 (5) Delegation of investment authority in connection with pension
24financing in populous counties.
The governing board of a county having a
25population of 500,000 or more may delegate investment authority over any of the

1moneys described in sub. (1m) (e) to any of the following persons, which shall be
2responsible for the general administration and proper operation of the county's
3employee retirement system, subject to the board's finding that such person has
4expertise in the field of investments:
SB366,17,55 (a) A public board that is organized for such purpose under county ordinances.
SB366,17,66 (b) A trustee, investment advisor, or investment banking or consulting firm.
SB366, s. 8 7Section 8. 67.01 (9) (intro.) of the statutes is amended to read:
SB366,17,98 67.01 (9) (intro.) This chapter is not applicable to appropriation bonds issued
9by a county under s. 59.85 and
, except ss. 67.08 (1), 67.09 and 67.10, is not applicable:
SB366, s. 9 10Section 9. 67.04 (5) (b) 4. of the statutes is amended to read:
SB366,17,1411 67.04 (5) (b) 4. To pay unfunded prior service liability contributions under the
12Wisconsin retirement system, or to pay unfunded prior service liability with respect
13to an employee retirement system,
if all of the net proceeds of the note will be used
14to pay for such contributions or payments.
SB366, s. 10 15Section 10. 67.045 (1) (g) of the statutes is created to read:
SB366,17,1816 67.045 (1) (g) The debt is issued by a county having a population of 500,000 or
17more to pay unfunded prior service liability with respect to an employee retirement
18system.
SB366, s. 11 19Section 11. 67.12 (12) (a) of the statutes is amended to read:
SB366,18,420 67.12 (12) (a) Any municipality may issue promissory notes as evidence of
21indebtedness for any public purpose, as defined in s. 67.04 (1) (b), including but not
22limited to paying any general and current municipal expense, and refunding any
23municipal obligations, including interest on them. Each note, plus interest if any,
24shall be repaid within 10 years after the original date of the note, except that notes
25issued under this section for purposes of ss. 119.498, 145.245 (12m), 281.58, 281.59,

1281.60, and 281.61, or issued to raise funds to pay a portion of the capital costs of a
2metropolitan sewerage district, or issued by a county having a population of 500,000
3or more to pay unfunded prior service liability with respect to an employee
4retirement system
shall be repaid within 20 years after the original date of the note.
SB366,18,55 (End)
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