LRB-0654/1
JTK:nwn:rs
2011 - 2012 LEGISLATURE
May 17, 2011 - Introduced by Joint Legislative Council. Referred to Committee
on Urban and Local Affairs.
AB139,1,4 1An Act to create 16.28 and 20.505 (1) (d) and (gz) of the statutes; relating to:
2loans to study or implement the consolidation, or cooperation for the provision,
3of local governmental unit services or the consolidation of local governmental
4units and granting rule-making authority.
Analysis by the Legislative Reference Bureau
This bill is explained in the Notes provided by the Joint Legislative Council in
the bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
Joint Legislative Council prefatory note: This bill was prepared for the Joint
Legislative Council's Special Committee on Local Service Consolidation.
The bill creates a local governmental unit consolidation program, whereby a local
governmental unit, or a combination of 2 or more local governmental units, may receive
a loan to study or implement the consolidation, or cooperation for the provision, of local
governmental unit services or the consolidation of local governmental units. The
program is administered by the department of administration (DOA).
AB139, s. 1 5Section 1. 16.28 of the statutes is created to read:
AB139,1,7 616.28 Local governmental unit consolidation program. (1) Definitions.
7In this section:
AB139,2,1
1(a) "Eligible activities" means any of the following:
AB139,2,32 1. Studying or implementing the consolidation of one or more local
3governmental unit services, pursuant to any statute authorizing the consolidation.
AB139,2,64 2. Studying or implementing the cooperation for the provision of one or more
5local governmental unit services, pursuant to any statute authorizing the
6cooperation.
AB139,2,87 3. Studying or implementing the consolidation of local governmental units,
8pursuant to any statute authorizing the consolidation.
AB139,2,109 (b) "Local governmental unit" means a county, city, village, town, or school
10district.
Note: The subsection defines "eligible activities" and "local governmental unit".
AB139,2,14 11(2) Local governmental unit consolidation program. The department may
12make a loan to a local governmental unit, or a combination of 2 or more local
13governmental units, from the appropriations under s. 20.505 (1) (d) and (gz) for
14eligible activities.
Note: This subsection provides that DOA may make a loan under the program for
eligible activities.
AB139,2,18 15(3) Loan criteria; generally. (a) Upon receipt of an application from a local
16governmental unit, or a combination of 2 or more local governmental units, the
17department shall consider the following in determining whether to make a loan
18under sub. (2):
AB139,2,2119 1. A demonstrated probability that the proposed eligible activities will reduce
20the cost of providing local governmental unit services or improve the level of services
21provided by the local governmental units.
AB139,2,2222 2. Whether the eligible activities might occur without the loan.
AB139,3,3
13. The extent to which the proposed eligible activities will contribute to regional
2cooperation and minimize competition for economic development between local
3governmental units.
AB139,3,44 4. Any other criteria established by the department by rule.
AB139,3,75 (b) The department shall give preference in making a loan under sub. (2) to the
6implementation of consolidation or cooperation over the study of consolidation or
7cooperation.
AB139,3,108 (c) If 2 or more local governmental units wish to engage in eligible activities
9together, all local governmental units involved in the eligible activities shall submit
10a joint application to the department.
Note: This subsection identifies the factors that DOA must consider in
determining whether to make a loan under the program and requires that DOA give
preference in making a loan to the implementation of consolidation or cooperation. In
addition, all local governmental units involved in studying or implementing
consolidation or cooperation must submit a joint application for a loan under the program.
AB139,3,15 11(4) Miscellaneous and administrative expenses. In each fiscal biennium, the
12department may expend or encumber up to a total of 1% of the moneys appropriated
13under s. 20.505 (1) (d) and (gz) for that fiscal biennium for evaluation costs, collection
14costs, and other costs associated with administering the program under this section,
15excluding staff salaries.
Note: This subsection allows DOA to use up to a total of 1% of the appropriations
for the program for administrative expenses.
AB139,3,18 16(5) Administration. (a) The department shall issue a decision within 45 days
17after the receipt of an application under this section from either a local governmental
18unit or a combination of 2 or more local governmental units.
AB139,4,219 (b) The department shall obtain reimbursement of loans made under sub. (2)
20through full repayment of the principal amount of the loan plus any interest assessed

1under par. (c). The department shall deposit moneys received under this paragraph
2in the appropriation under s. 20.505 (1) (gz).
AB139,4,73 (c) The department may charge a loan recipient an origination fee of not more
4than 2 percent of the loan amount if the loan equals or exceeds $10,000. In addition,
5the department may assess interest on a loan at a rate determined by the
6department. The department shall deposit all origination fees and interest collected
7under this paragraph in the appropriation account under s. 20.505 (1) (gz).
AB139,4,98 (d) The department shall promulgate rules to implement this section, including
9the following:
AB139,4,1010 1. Content of applications for loans made under sub. (2).
AB139,4,1211 2. Procedures for submitting applications for loans, including a deadline for
12submitting applications.
AB139,4,1413 3. Procedures for evaluating applications, including types of eligible activities
14that will receive priority, except as provided in sub. (3) (b).
AB139,4,1515 4. Conditions applicable to loans made under sub. (2).
AB139,4,1716 5. Procedures for monitoring and auditing the use of the proceeds of loans made
17under sub. (2).
AB139,4,2118 6. A biennial plan for making loans under sub. (2), before the commencement
19of each odd-numbered fiscal year, and for the submission of the biennial plan to the
20governor and the chief clerk of each house of the legislature for distribution to the
21appropriate standing committees under s. 13.172 (3).
Note: This subsection requires that DOA obtain reimbursement of loans made
under the program and that DOA issue a decision on the loan application within 45 days
after receiving an application. This subsection also allows DOA to charge an origination
fee to a loan recipient if the loan equals or exceeds $10,000 and to charge interest on loans
at a rate determined by DOA. Lastly, in this subsection, DOA is required to promulgate
rules that include the content of loan applications; procedures for submitting applications
for loans and evaluating applications; conditions applicable to loans; procedures for
monitoring and auditing loans; and a biennial plan for making loans under the program.
AB139, s. 2
1Section 2. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
Note: This Section creates an appropriation schedule entry for the general
purpose revenue appropriation created by the bill. The Section contains no
appropriation amounts.
AB139, s. 3 3Section 3. 20.505 (1) (d) and (gz) of the statutes are created to read:
AB139,5,64 20.505 (1) (d) Local governmental unit consolidation program, loans. The
5amounts in the schedule for loans under s. 16.28 and for administrative costs of the
6local governmental unit consolidation program, excluding staff salaries.
AB139,5,107 (gz) Local governmental unit consolidation program, repayments. All moneys
8received in repayment of loans under s. 16.28, to be used for loans under s. 16.28 and
9for administrative costs of the local governmental unit consolidation program,
10excluding staff salaries.
Note: This Section creates 2 appropriation accounts for the local governmental
unit consolidation, including administration costs. One account will hold moneys for
loans. The 2nd account will hold moneys from the repayment of loans.
AB139, s. 4 11Section 4. Effective date.
AB139,5,1312 (1) This act takes effect on the day after publication of this act or on the 2nd
13day after publication of the 2011-13 biennial budget act, whichever is later.
AB139,5,1414 (End)
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