LRB-3636/1
PG:cjs:jf
2013 - 2014 LEGISLATURE
November 21, 2013 - Introduced by Senators Lasee and Lazich, cosponsored by
Representatives Strachota, Stroebel, Nygren, Murphy, Kooyenga,
Marklein, Nass, Pridemore, Bies, Kestell, Craig and Thiesfeldt. Referred
to Committee on Education.
SB408,1,3 1An Act to amend 24.66 (3) (c) 2., 24.66 (4), 67.05 (6a) (a) 2. (intro.) and 67.12 (12)
2(e) 2. of the statutes; relating to: school district bonds, promissory notes, and
3state trust fund loans.
Analysis by the Legislative Reference Bureau
Under current law, if a school board adopts a resolution to issue a bond or a
promissory note, the school district clerk must publish or post a notice except in
certain specified situations. The notice must state the maximum amount proposed
to be borrowed, the purpose of the borrowing, and the place where and the hours
during which the resolution may be inspected. If a school district applies for a state
trust fund loan, the notice must state the amount of the proposed loan and the
purpose for which it will be used.
This bill requires the above notices to also include the estimated amount of
interest costs, the estimated amount of other costs associated with issuing the bond
or promissory note or obtaining the loan, and the assumptions made with regard to
estimating interest and other costs.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB408,1 4Section 1. 24.66 (3) (c) 2. of the statutes is amended to read:
SB408,3,5
124.66 (3) (c) 2. Unless the purpose and amount of the borrowing have been
2approved by the electors under s. 67.05 (6a) or considered approved by the electors
3under s. 67.05 (7) (d) 3., the purpose is to refund any outstanding obligation, the
4purpose is to pay unfunded prior service liability contributions under the Wisconsin
5Retirement System if all of the proceeds of the note will be used for that purpose, or
6the borrowing would not be subject to a referendum as a bond issue under s. 67.05
7(7) (cc), (h), or (i), or s. 67.12 (12) (e) 2g., (f), or (h) applies, the school district clerk
8shall, within 10 days after a governing body of a school district adopts a resolution
9as described above to issue a certificate of indebtedness, publish notice of such
10adoption as a class 1 notice, under ch. 985. Alternatively, the notice may be posted
11as provided under s. 10.05. The notice need not set forth the full contents of the
12resolution, but shall state the maximum amount proposed to be borrowed, the
13purpose thereof, that the resolution was adopted under this subsection, and the place
14where, and the hours during which, the resolution may be inspected
information
15specified for the notice under s. 67.05 (6a) (a) 2
. If, within 30 days after publication
16or posting, a petition conforming to the requirements of s. 8.40 is filed with the school
17district clerk for a referendum on the resolution signed by at least 7,500 electors of
18the district or at least 20 percent of the number of district electors voting for governor
19at the last general election, as determined under s. 115.01 (13), whichever is the
20lesser, then the resolution shall not be effective unless adopted by a majority of the
21district electors voting at the referendum. The referendum shall be called in the
22manner provided under s. 67.05 (6a), except that the question which appears on the
23ballot shall be "Shall .... (name of district) borrow the sum of $.... for (state purpose)
24by issuing its general obligation promissory note (or notes) under section 24.66 (3)
25of the Wisconsin Statutes?". If a governing body of a school district adopts a

1resolution to borrow a sum of money under this subsection and a sufficient petition
2for referendum is not filed within the time permitted, then the power of the governing
3body of a school district to borrow the sum and expend the sum for the purpose stated
4shall be deemed approved by the school district electors upon the expiration of the
5time for filing the petition.
SB408,2 6Section 2. 24.66 (4) of the statutes is amended to read:
SB408,3,177 24.66 (4) Popular vote, when required. If any municipality is not empowered
8by law to incur indebtedness for a particular purpose without first submitting the
9question to its electors, the application for a state trust fund loan for that purpose
10must be approved and authorized by a majority vote of the electors at a special
11election called, noticed and held in the manner provided for other special elections.
12The question to be voted on shall be filed as provided in s. 8.37. The notice of the
13election shall state the amount of the proposed loan and the purpose for which it will
14be used, except that the notice of the election in a school district shall state the
15amount of the proposed loan, the estimated amount of interest costs, the estimated
16amount of other costs associated with obtaining the loan, the assumptions made with
17regard to estimating interest and other costs, and the purpose of the borrowing
.
SB408,3 18Section 3. 67.05 (6a) (a) 2. (intro.) of the statutes is amended to read:
SB408,4,519 67.05 (6a) (a) 2. (intro.) Except as provided under pars. (b) and (c) and subs.
20(7) and (15), if the board of any school district, or the electors at a regularly called
21school district meeting, by a majority vote adopt an initial resolution to raise an
22amount of money by a bond issue, the school district clerk shall, within 10 days,
23publish notice of such adoption as a class 1 notice under ch. 985 or post the notice as
24provided under s. 10.05. The notice shall state the maximum amount proposed to
25be borrowed, the estimated amount of interest costs, the estimated amount of other

1costs associated with issuing the bond, the assumptions made with regard to
2estimating interest and other costs,
the purpose of the borrowing, that the statute
3under which
the resolution was adopted under this subdivision, and the place where
4and the hours during which the resolution may be inspected. The school board shall
5also do one of the following:
SB408,4 6Section 4. 67.12 (12) (e) 2. of the statutes is amended to read:
SB408,5,57 67.12 (12) (e) 2. Unless the purpose and amount of the borrowing have been
8approved by the electors under s. 67.05 (6a) or deemed approved by the electors under
9s. 67.05 (7) (d) 3., the purpose is to refund any outstanding municipal obligation, the
10purpose is to pay unfunded prior service liability contributions under the Wisconsin
11retirement system if all of the proceeds of the note will be used for that purpose, the
12borrowing would not be subject to a referendum as a bond issue under s. 67.05 (7) (cc),
13(h) or (i), or subd. 2g. or par. (f) or (h) applies, the school district clerk shall, within
1410 days after a school board adopts a resolution under subd. 1. to issue a promissory
15note in excess of $5,000, publish notice of such adoption as a class 1 notice, under ch.
16985. Alternatively, the notice may be posted as provided under s. 10.05. The notice
17need not set forth the full contents of the resolution, but shall state the maximum
18amount proposed to be borrowed, the purpose thereof, that the resolution was
19adopted under this subsection, and the place where, and the hours during which, the
20resolution may be inspected
information specified for the notice published under s.
2167.05 (6a) (a) 2
. If, within 30 days after publication or posting, a petition conforming
22to the requirements of s. 8.40 is filed with the school district clerk for a referendum
23on the resolution signed by at least 7,500 electors of the district or at least 20% of the
24number of district electors voting for governor at the last general election, as
25determined under s. 115.01 (13), whichever is the lesser, then the resolution shall not

1be effective unless adopted by a majority of the district electors voting at the
2referendum. The referendum shall be called in the manner provided under s. 67.05
3(6a), except that the question which appears on the ballot shall be "Shall .... (name
4of district) borrow the sum of $.... for (state purpose) by issuing its general obligation
5promissory note (or notes) under section 67.12 (12) of the Wisconsin Statutes?".
SB408,5 6Section 5. Initial applicability.
SB408,5,97 (1) This act first applies to a resolution adopted under section 67.05 (1) or (2)
8or 67.12 (12) (e) 1. of the statutes, or an application for a state trust fund loan filed
9under section 24.66 (1) of the statutes, on the effective date of this subsection.
SB408,6 10Section 6. Effective date.
SB408,5,1111 (1) This act takes effect on July 1, 2014.
SB408,5,1212 (End)
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