AB857: Bill Text

LRB-4425/1

EVM:ahe

2017 - 2018 LEGISLATURE

2017 Assembly BILL 857

January 19, 2018 - Introduced by Representatives Hutton, Katsma, Macco, R. Brooks, Horlacher and Tusler, cosponsored by Senators Stroebel and Craig. Referred to Committee on State Affairs.

AB857,1,10 An Act to repeal 24.61 (3), 24.61 (4), 24.61 (4m), 24.63 (1), 24.63 (2), 24.63 (2m), 24.63 (2r), 24.63 (2s), 24.66 (1) to (4), 24.66 (5) (b), 24.67 (1), 24.67 (2) and 60.24 (3) (d); to renumber and amend 24.66 (5) (a) and 24.67 (3); and to amend 20.255 (2) (s) (title), 24.60 (1) (c), 24.60 (1) (d), 24.60 (4), 24.61 (1), 24.61 (2) (c), 24.61 (5), 24.61 (7), 24.62 (1), 24.63 (title), 24.66 (6), 43.70 (3), 116.03 (13s), 200.27 (2) (a) 1., 229.825 (2) (ae), 229.827 (3), 229.829 (4) (c) and 281.43 (4) (d) of the statutes; relating to: the authority of the Board of Commissioners of Public Lands to make trust fund loans and delegate authority to invest trust fund moneys, the use of common school fund income moneys, and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill eliminates the authority of the Board of Commissioners of Public Lands (BCPL) to make state trust fund loans, broadens the authority of the BCPL to delegate its authority to invest state trust fund moneys, and removes certain restrictions on the use of common school fund income moneys.

Under current law, BCPL manages the common school fund, the normal school fund, the university fund, and the agricultural college fund (trust funds). BCPL also administers a state trust fund loan program under which it makes loans from moneys belonging to the trust funds to school districts, local governments, and certain other public entities for certain public purposes. This bill eliminates the authorization of BCPL to make these loans.

Under current law, BCPL may delegate authority to the State of Wisconsin Investment Board (SWIB) to invest the moneys belonging to the trust funds, but SWIB may invest the moneys only in fixed income investments or funds that invest only in fixed income instruments.

Under this bill, SWIB must invest BCPL delegated moneys in the manner SWIB invests the moneys belonging to the other funds SWIB manages.

Also under current law, income from the common school fund is distributed to the school districts of the state and must be expended only for the purchase of instructional materials from the State Historical Society for use in teaching Wisconsin history, for the purchase of library books and other instructional materials for school libraries, and, under certain conditions, for the purchase of school library computers and related software. This bill removes these limitation regarding a school district's expenditure of common school fund income moneys.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB857,1 Section 1. 20.255 (2) (s) (title) of the statutes is amended to read:

AB857,2,2 20.255 (2) (s) (title) School library aids.

AB857,2 Section 2. 24.60 (1) (c) of the statutes is amended to read:

AB857,2,5 24.60 (1) (c) A county, if the county acts on behalf of a county library board that has adopted a resolution under s. 24.66 (3m), 2015 stats.

AB857,3 Section 3. 24.60 (1) (d) of the statutes is amended to read:

AB857,2,9 24.60 (1) (d) A city, village or town, if the city, village or town acts on behalf of a municipal library board that has adopted a resolution under s. 24.66 (3m), 2015 stats.

AB857,4 Section 4. 24.60 (4) of the statutes is amended to read:

AB857,2,12 24.60 (4) “State trust fund loan" means a loan authorized under s. 24.61 (3), 2015 stats.

AB857,5 Section 5. 24.61 (1) of the statutes is amended to read:

AB857,3,6 24.61 (1) Investments and loans; separate accounts. The board shall loan or invest moneys and for an application received before the effective date of this subsection .... [LRB inserts date], may loan moneys belonging to the trust funds as those moneys accumulate in the treasury. The board shall keep a separate account of all investments and loans from each fund.

AB857,6 Section 6. 24.61 (2) (c) of the statutes is amended to read:

AB857,3,13 24.61 (2) (c) Delegation of investment authority to investment board. The board may delegate to the investment board the authority to invest part or all of the moneys belonging to the trust funds. If the board delegates the authority, the investment board may shall invest the moneys belonging to the trust funds in any fixed income investment or fund that invests only in fixed income instruments manner authorized for the investment of any funds specified under s. 25.17.

AB857,7 Section 7. 24.61 (3) of the statutes is repealed.

AB857,8 Section 8. 24.61 (4) of the statutes is repealed.

AB857,9 Section 9. 24.61 (4m) of the statutes is repealed.

AB857,10 Section 10. 24.61 (5) of the statutes is amended to read:

AB857,4,8 24.61 (5) Loans to consortia or cities, villages or towns served by joint library boards. Whenever The procedure for repayment of a state trust fund loan made to a consortium applies for a loan under sub. (3), or whenever a group of cities, villages, or towns served by a joint county or municipal library board applies for a loan and obtained for an educational technology or distance education project, the board shall treat the application as a loan to each of the members of the consortium or each city, village or town served by a county or municipal library board in an amount equal to the total amount of the loan divided equally by the number of members of the consortium or the number of cities, villages and towns served by the library board, unless all members of the consortium or all cities, villages and towns served by a joint library board agree to a different arrangement specified by the members or cities, villages and towns on their applications. The procedure for application, approval and repayment of the loan by each member of a consortium or group under this subsection shall be the same as provided in this subchapter for application, approval and repayment of a loan to that member individually, except that the loan shall not be made unless all members qualify.

AB857,11 Section 11. 24.61 (7) of the statutes is amended to read:

AB857,5,2 24.61 (7) Loans to cooperative educational service agencies. Whenever a cooperative educational service agency applies for a loan under sub. (3), the board shall treat the application as a loan to each of the school districts on behalf of which the loan is sought in an amount equal to the total amount of the loan divided equally by the number of school districts, unless the cooperative educational service agency specifies on its application a different arrangement that has been agreed to by all school districts for which the loan is sought. The board shall not make the loan unless each school district for which the loan is sought qualifies for a loan in the amount specified in this subsection, or a different amount if that amount is specified on the application. If the a cooperative educational service agency fails to make a timely repayment of the principal or payment of the interest on the a state trust fund loan, each school district for which the loan is made is liable to repay the principal and pay the interest in the amount determined under this subsection an amount equal to the total amount of the loan divided equally by the number of school districts for which the loan is made, unless the agency has specified on its loan application a different arrangement that has been agreed to by all school districts for which the loan is sought.

AB857,12 Section 12. 24.62 (1) of the statutes is amended to read:

AB857,5,7 24.62 (1) Except as authorized in sub. (2), the board shall deduct its expenses incurred in administering investments and state trust fund loans under s. 24.61 from the gross receipts of the fund to which the interest and income of the investment or loan will be added.

AB857,13 Section 13. 24.63 (title) of the statutes is amended to read:

AB857,5,9 24.63 (title) Term, amount, Repayment and interest rate.

AB857,14 Section 14. 24.63 (1) of the statutes is repealed.

AB857,15 Section 15. 24.63 (2) of the statutes is repealed.

AB857,16 Section 16. 24.63 (2m) of the statutes is repealed.

AB857,17 Section 17. 24.63 (2r) of the statutes is repealed.

AB857,18 Section 18. 24.63 (2s) of the statutes is repealed.

AB857,19 Section 19. 24.66 (1) to (4) of the statutes are repealed.

AB857,20 Section 20. 24.66 (5) (a) of the statutes is renumbered 24.66 (5) and amended to read:

AB857,6,13 24.66 (5) Irrepealable tax levy. Every application for a general obligation trust fund loan under this section by a municipality shall be accompanied by a certified copy under the hand of the proper clerk of a recorded resolution adopted by the municipality applying for or approving the loan, levying, except as provided in par. (b), upon all the taxable property of the municipality a direct annual tax for the purpose of paying and sufficient to pay the principal and interest on the proposed loan as they become due. In a 1st class city school district, the application shall be accompanied by a certified copy of a resolution, adopted by the board of school directors, stating that it is the intention of the board of school directors to include in its budget transmitted to the common council under s. 119.16 (8) (b) a written notice specifying the amount of money necessary to pay the principal and interest on the loan as they become due. Every application for a general obligation trust fund loan under this subsection by a cooperative educational service agency shall be accompanied by a copy of a recorded resolution adopted by the school board of each school district for which the loan is sought, certified by the school district clerk of that school district, levying upon all taxable property of the school district a direct annual tax for the purpose of paying and sufficient to pay the school district's share of the principal and interest on the proposed loan as they become due. The A levy imposed by the municipality shall be void if the board declines to make the loan; otherwise it under s. 24.66 (5) (a), 2015 stats., shall remain valid and irrepealable until the loan and all interest on the loan are fully paid.

AB857,21 Section 21. 24.66 (5) (b) of the statutes is repealed.

AB857,22 Section 22. 24.66 (6) of the statutes is amended to read:

AB857,6,19 24.66 (6) Proceedings to be recorded and become conclusive evidence. The application, statement, and all accompanying exhibits and documents of a state trust fund loan shall be recorded in the office of the board and, together with the record, is conclusive evidence of the facts stated.

AB857,23 Section 23. 24.67 (1) of the statutes is repealed.