LRB-1349/3
TKK:jld:rs
2011 - 2012 LEGISLATURE
August 25, 2011 - Introduced by Representatives Kaufert, Hintz, Thiesfeldt,
Brooks, Petrowski, Molepske Jr, A. Ott, Strachota, Mursau
and Ringhand,
cosponsored by Senators Schultz, Taylor, Wanggaard and Lassa. Referred to
Committee on Education.
AB224,1,3 1An Act to amend 43.58 (7) (b), 118.27 and 119.18 (16) of the statutes; relating
2to:
authorizing school boards and libraries to transfer a gift or grant to certain
3charitable organizations.
Analysis by the Legislative Reference Bureau
Under current law, the school board of a school district may receive gifts or
grants of money, furniture, and other property, and must use or invest the gift or
grant in the manner specified by the donor or grantor. In the absence of specific
direction regarding the use or investment of the gift or grant, the school board may
determine how to use the gift or grant in accordance with the law applicable to trust
investments.
This bill allows a school board to transfer unrestricted donations made to the
school board to a charitable organization exempt from federal income tax under the
Internal Revenue Code (IRC), provided the organization agrees in writing to use the
donation to provide financial or material support for the school district and to comply
with any terms of the donation.
Under current law, the library board of a public library may transfer donations
made to the library to the treasurer of the municipality or county in which the library
is located; entrust them to a public depository; transfer them to the library board's
financial secretary; or transfer them to a charitable organization exempt from
federal income tax under the IRC that has as its purpose providing financial or
material support to the public library. This bill permits the library to transfer a
donation to any charitable organization exempt from federal income tax, provided

the organization agrees in writing to use the donation to provide financial or material
support for the public library and to comply with any terms of the donation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB224, s. 1 1Section 1. 43.58 (7) (b) of the statutes is amended to read:
AB224,3,22 43.58 (7) (b) If a gift, bequest, or endowment is made to any public library, the
3library board may pay or transfer the gift, bequest, or endowment, or its proceeds,
4to the treasurer of the municipality or county in which the public library is situated;
5may entrust the gift, bequest, or endowment to a public depository under ch. 34; may
6pay or transfer the gift, bequest, or endowment to the library board's financial
7secretary; or may pay or transfer the gift, bequest, or endowment to a charitable
8organization, described in section 501 (c) (3) of the Internal Revenue Code and
9exempt from federal income tax under section 501 (a) of the Internal Revenue Code,
10the purpose of which is providing if the charitable organization agrees in writing to
11use the gift, bequest, or endowment to provide
financial or material support to the
12public library and to comply with the terms of the gift, bequest, or endowment. A
13payment or transfer of a gift, bequest, or endowment by a library board to a
14charitable organization described in this paragraph made prior to March 19, 2008,
15is not invalid as lacking statutory authority to make the payment or transfer. If the
16library board pays or transfers the gift, bequest, or endowment to the financial
17secretary, the financial secretary may invest the gift, bequest, or endowment as
18permitted under s. 66.0603 (1m) or 112.11 (3); or may delegate investment authority
19for the gift, bequest, or endowment as permitted under s. 66.0603 (2) or 112.11 (5).
20The financial secretary shall hold office only during membership on the library board

1and shall be elected annually at the same time and in the same manner as the other
2officers of the library board.
AB224, s. 2 3Section 2. 118.27 of the statutes is amended to read:
AB224,3,19 4118.27 Gifts and grants. The school board of a district may receive, accept
5and use gifts or grants of furniture, books, equipment, supplies, moneys, securities
6or other property, real or personal, used or useful for school research and educational
7purposes. All moneys received as gifts or grants shall be placed in the school district
8treasury but shall be considered segregated trust funds. Whenever a school board
9receives gifts or grants under this section, it shall make such use thereof, or invest
10the same in the case of moneys, as the donor or grantor specifies. In the absence of
11any specific direction as to the use of such gifts or grants by a donor or grantor, the
12school board may determine the use of or invest the same in accordance with the law
13applicable to trust investments, or may transfer any such gift or grant to a charitable
14organization described in section 501 (c) (3) of the Internal Revenue Code and exempt
15from federal income tax under section 501 (a) of the Internal Revenue Code if the
16charitable organization agrees in writing to use the gift or grant to provide financial
17or material support to the school district and to comply with any terms of the gift or
18grant
. In the use, control or investment of such gifts or grants, the school board may
19exercise the rights and powers generally conferred upon trustees.
AB224, s. 3 20Section 3. 119.18 (16) of the statutes is amended to read:
AB224,4,921 119.18 (16) Gifts and grants. The board may receive, accept and use gifts or
22grants of furniture, books, equipment, supplies, moneys, securities or other property
23used or useful for school and educational purposes. The board shall make such use
24of gifts or grants, or invest the same in the case of moneys, as the donor or grantor
25specifies. In the absence of any specific direction as to the use of such gifts or grants

1by a donor or grantor, the board may determine the use of or may invest the same in
2accordance with the law applicable to trust investments, or may transfer any such
3gift or grant to a charitable organization described in section 501 (c) (3) of the
4Internal Revenue Code and exempt from federal income tax under section 501 (a) of
5the Internal Revenue Code if the charitable organization agrees in writing to use the
6gift or grant to provide financial or material support to the school district and to
7comply with any terms of the gift or grant
. In the use, control or investment of such
8gifts or grants, the board may exercise the rights and powers generally conferred
9upon trustees.
AB224, s. 4 10Section 4. Initial applicability.
AB224,4,1211 (1) The treatment of sections 118.27 and 119.18 (16) of the statutes first applies
12to a gift or grant made to a school district on the effective date of this subsection.
AB224,4,1513 (2) The treatment of section 43.58 (7) (b) of the statutes first applies to a gift,
14bequest, or endowment made to a public library on the effective date of this
15subsection.
AB224,4,1616 (End)
Loading...
Loading...