STATE DEBT
18.01
18.01
Definitions. In this subchapter unless a different meaning is expressly provided or the context clearly indicates a different meaning:
18.01(1)
(1) "Authorizing resolution" means any resolution adopted by the commission pursuant to this subchapter which authorizes the contracting of public debt.
18.01(2)
(2) "Commission" means the building commission.
18.01(3)
(3) "Evidence of indebtedness" means a bond, a note or any other written promise to pay a public debt.
18.01(4)
(4) "Public debt" or "debt" means every voluntary, unconditional undertaking by the state, other than an operating note or an interest exchange agreement, to repay a sum certain:
18.01(4)(a)
(a) Out of the state treasury, except a loan or advance by any state agency or fund to any other state agency or fund; or
18.01(4)(b)
(b) For which any existing asset of the state is pledged, except the pledge of an outstanding evidence of indebtedness without recourse.
18.02
18.02
Scope of subchapter. Public debt may be contracted and evidences of indebtedness issued therefor only to the amounts, for the purposes, by the procedures and with the kinds of evidence of indebtedness specified in this subchapter, except that this subchapter is not applicable:
18.02(1)
(1) To public debt, not exceeding in the aggregate $100,000, incurred for the purpose of defraying extraordinary expenditures of the state.
18.02(2)
(2) To public debt incurred to repel invasion, suppress insurrection or defend the state in time of war.
18.02 History
History: 1977 c. 29 s.
1652.
18.03(1)(1) Subject to the conditions and limitations contained in this subchapter, the commission shall have supervision over all matters relating to the contracting of public debt and the issuance of evidences of indebtedness therefor.
18.03(2)(a)(a) The commission shall have all of the powers necessary to carry out its functions.
18.03(2)(b)
(b) The commission may interpret the statutes enforced or administered by it as it considers to be necessary to effectuate the purpose of the statutes. The authority granted by this paragraph shall not exceed the authority granted by
s. 227.11 (2) (a).
18.03(2)(c)
(c) The commission may prescribe such forms and procedures in connection with statutes to be enforced or administered by it as it considers to be necessary to effectuate the purpose of the statutes, but nothing in this paragraph authorizes the imposition of substantive requirements in connection with such forms or procedures.
18.03(3)
(3) The department of administration shall assist the commission to carry out its functions and carry out all directives of the commission.
18.03(4)
(4) All actions of the commission shall be taken by resolution. Each authorizing resolution shall be reduced to writing. The secretary of the commission shall maintain a full and correct record of each step or proceeding had or taken in the course of authorizing and contracting every public debt.
18.03(5)
(5) Upon request of a state department or agency, the commission shall prepare periodic reports describing the current status of indebtedness relevant to the department's or agency's program responsibilities.
18.03(5m)
(5m) Upon the request of a local exposition district under
subch. II of ch. 229, the commission shall serve as financial consultant to assist and coordinate the issuance of bonds of the district.
18.03(5s)
(5s) Upon the request of a local professional baseball park district created under
subch. III of ch. 229, the commission may serve as financial consultant to assist and coordinate the issuance of the bonds of a district.
18.03(6)
(6) Nothing in this subchapter shall be construed to supersede the authority by statute of any state department or agency in carrying out program responsibilities for which public debt has been authorized by the legislature.
18.04
18.04
Purposes of public debt and amounts. 18.04(1)
(1) The commission may authorize public debt to be contracted and evidences of indebtedness to be issued therefor in an amount sufficient to fund or refund, as provided in
s. 18.06 (5), or to fund, refund or acquire for any of the purposes set forth in
sub. (5) and as provided in
s. 18.06 (7), the whole or any part of:
18.04(1)(a)
(a) Any public debt contracted pursuant to this subchapter.
18.04(1)(b)
(b) Any indebtedness incurred prior to January 1, 1972, by the Wisconsin state agencies building corporation, Wisconsin state colleges building corporation, Wisconsin state public building corporation or Wisconsin university building corporation.
18.04(2)
(2) The commission shall authorize public debt to be contracted and evidences of indebtedness to be issued therefor up to the amounts specified by the legislature to acquire, construct, develop, extend, enlarge or improve land, waters, property, highways, buildings, equipment or facilities or to make funds available for veterans' housing loans for the classes of public purposes specified by the legislature as the funds are required. Said requirements for funds shall be established by that department or agency head having program responsibilities for which public debt has been authorized by the legislature.
18.04(3)
(3) Each purpose enumerated in
sub. (1) shall be construed to include any premium payable with respect thereto and the expenses of funding, refunding and acquiring public debt. Each purpose specified by the legislature under
subs. (1) and
(2) shall be construed to include the expenses of contracting public debt.
18.04(5)
(5) Public debt may be contracted under
sub. (1) for any of the following purposes:
18.04(5)(a)
(a) To acquire public debt contracted to make funds available for veterans' housing loans under
sub. (2).
18.04(5)(b)
(b) To fund or refund public debt contracted to make funds available for veterans' housing loans under
sub. (2).
18.04(5)(c)
(c) To acquire public debt, other than public debt that is contracted to make funds available for veterans' housing loans under
sub. (2), for the purpose of investment for the veterans primary mortgage loan program under
s. 45.79.
18.04(5)(d)
(d) To acquire public debt contracted for any of the purposes under
pars. (a) to
(c).
18.04(6)(a)(a) Public debt may include public debt contracted to fund interest, accrued or to accrue, on the public debt and to fund reserve funds for the public debt.
18.04(6)(b)
(b) The commission may direct that moneys resulting from any public debt contracted under this section be deposited in the funds or accounts created or designated by resolution of the commission or established by resolution under
s. 45.79 (7), including escrow accounts established under refunding escrow agreements that are authorized by the commission.
18.04(6)(c)
(c) Notwithstanding
s. 25.17, moneys deposited or held in funds or accounts under
par. (b) and all other moneys received under
s. 45.79 (7) (a) (intro.) may be invested in any obligations, either through cash purchase or exchange, as specified by resolution of the commission.
18.04(6)(d)
(d) Notwithstanding
s. 25.17, moneys deposited or held in funds or accounts under
par. (b) may be transferred to other funds or accounts or expended as provided by resolution of the commission, except that moneys resulting from public debt contracted for the purpose set forth in
sub. (5) (b) and deposited in an escrow account shall be payable solely for the purposes of the bond security and redemption fund and for costs related to the creation and maintenance of the escrow account.
18.05
18.05
Limitations on aggregate public debt. 18.05(1)
(1) The aggregate public debt contracted in any calendar year for purposes specified by the legislature pursuant to
s. 18.04 (2) shall not exceed an amount equal to the lesser of:
18.05(1)(a)
(a) Three-fourths of one per cent of the aggregate value of all taxable property in the state; or
18.05(1)(b)
(b) Five per cent of the aggregate value of all taxable property in the state less the sum of:
18.05(1)(b)1.
1. The aggregate public debt contracted pursuant to this subchapter which was outstanding as of January 1 of such calendar year after subtracting therefrom the amount on hand in the bond security and redemption fund and the amounts maintained pursuant to
s. 18.09 (3) on January 1 of such calendar year which is applicable exclusively to repayment of such outstanding public debt; and
18.05(1)(b)2.
2. The aggregate net indebtedness outstanding as of January 1 of such calendar year of the Wisconsin state agencies building corporation, Wisconsin state colleges building corporation, Wisconsin state public building corporation and Wisconsin university building corporation.
18.05(2)
(2) The last determination made by the department of revenue of the full market value of all general property of the state liable to taxes pursuant to
s. 70.575 shall be the aggregate value of all taxable property in the state. The department of revenue shall certify such value when requested for use in connection with the contracting of state debt.
18.05(3)
(3) The legislative audit bureau shall annually determine the amounts under
sub. (1) (b) 1. and
2. and shall certify such amounts when requested for use in connection with the contracting of state debt. It shall use in making such determination the fair market value of all property on hand in the sinking funds of the bond security and redemption fund. It shall take into account any anticipatory contracts under
s. 18.10 (1).
18.05 History
History: 1977 c. 29 s.
1652.
18.06(1)(1)
Authorizing resolution. No public debt may be contracted nor evidence of indebtedness issued by the state except pursuant to an authorizing resolution. Each authorizing resolution shall state each purpose of the debt it authorizes, which need not be more specific but shall not be more general than those purposes in or pursuant to law, and the maximum principal amount of debt authorized for each such purpose. The commission may amend at any time any purpose authorized by a resolution if the amendment does not cause the total amount of debt for that purpose to exceed the statutory limit on the issuance of debt for that purpose.
18.06(2)
(2) Loan. An authorizing resolution may authorize the negotiation of a loan or loan agreement of any type, upon any terms, with any bank, savings and loan association, savings bank or credit union, or with any agency of the United States.
18.06(3)
(3) Notes. An authorizing resolution may authorize the issuance and sale of notes. Such a sale may be public or private as provided in the authorizing resolution.
18.06(4)
(4) Bonds. An authorizing resolution may authorize the issuance and sale of bonds. Except as provided in
subs. (5),
(7) and
(9) and except for any bond authorized and issued under this subchapter and designated by the commission under
s. 18.82 as a higher education bond, the sale of bonds shall be public and noticed as provided in the authorizing resolution. Any or all bids received may be rejected and the sale canceled, or the sale of all or any part of the bonds negotiated, after bids at public sale have been rejected.
18.06(5)
(5) Funding and refunding. An authorizing resolution may authorize, for any one or more of the purposes described in
s. 18.04 (1), the issuance and sale of notes as provided in
sub. (3) or the issuance and sale of bonds as provided in
sub. (4). That sale may be public or private as provided in the authorizing resolution, and public debt may be exchanged in payment of or for the acquisition of other public debt.
18.06(6)
(6) Exercise of authority. Public debt may be contracted and evidence of indebtedness issued therefor under one or more authorizing resolutions, unless otherwise provided in the resolution, at any time and from time to time, for any combination of purposes, in any specific amounts, at any rates of interest, at any price or percentage of par value, for any term, payable at any intervals, at any place, in any manner and having any other terms or conditions deemed necessary or useful. A resolution authorizing the contracting of public debt may provide that the public debt bear interest at variable or fixed rates, bear no interest, bear interest payable at any time or bear interest payable only at maturity or upon redemption prior to maturity. Unless sooner exercised and unless a shorter period is provided in such resolution, every authorizing resolution shall expire one year after the date of its adoption.
18.06(7)
(7) Special procedures. Notwithstanding
subs. (2) to
(5), the following procedures apply to public debt contracted for any of the purposes under
s. 18.04 (5) or contracted for the purpose of making funds available for veterans' housing loans:
18.06(7)(a)
(a) The public debt may be sold at public or private sale.
18.06(7)(b)
(b) The public debt may be exchanged publicly or privately in payment of or for the acquisition of other public debt.
18.06(7)(c)
(c) The public debt may be sold for par value or at a premium or discount from par value.
18.06(7)(d)
(d) The public debt may bear interest at variable or fixed rates as provided in or pursuant to the resolution authorizing the contracting of the public debt or, if the resolution so provides, may bear no interest, bear interest payable at any time or bear interest payable only at maturity or upon redemption prior to maturity.
18.06(8)(a)(a) The commission may enter into agreements and ancillary arrangements for the public debt, including liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements or interest exchange agreements.
18.06(8)(b)
(b) The commission may delegate to other persons the authority and responsibility to take actions necessary and appropriate to implement agreements and ancillary arrangements under
par. (a).
18.06(8)(c)
(c) Any public debt may include public debt contracted to fund interest, accrued or to accrue, on the public debt.
18.06(9)
(9) Clean water fund bonds. Notwithstanding
sub. (4), the sale of bonds under this subchapter to provide revenue for the clean water fund program may be a private sale to the clean water fund under
s. 25.43, if the bonds sold are held or owned by the clean water fund, or a public sale, as provided in the authorizing resolution.
18.07
18.07
Form and content of evidence of indebtedness. 18.07(1)(1) Any provision of
s. 403.104 to the contrary notwithstanding, every evidence of indebtedness and every interest coupon appurtenant thereto is declared to be a negotiable instrument.
18.07(2)
(2) Every loan agreement entered into pursuant to
s. 18.06 (2) and every evidence of indebtedness given under such a loan agreement shall be executed in the name of and for the state by the secretary of the commission. Every other evidence of indebtedness shall be executed in the name of and for the state by the governor and by the state treasurer and shall be sealed with the great seal of the state or a facsimile thereof of any size, and every interest coupon appurtenant thereto shall be executed in the name of and for the state by the governor. The facsimile signature of either the governor or state treasurer or both may be imprinted in lieu of the manual signature of such officer, as the commission directs, if approved by such officer, and shall be so imprinted in the case of interest coupons. Evidence of indebtedness and interest coupons appurtenant thereto bearing the manual or facsimile signature of a person in office at the time such signature was signed or imprinted shall be fully valid notwithstanding that before or after the delivery thereof such person ceased to hold such office.
18.07(3)
(3) Every evidence of indebtedness shall be dated not later than the date issued, shall contain a reference by date to the appropriate authorizing resolution or resolutions and shall be in accordance therewith and, if issued for any one or more of the purposes described in
s. 18.04 (1), shall so state.
18.07(4)
(4) An evidence of indebtedness and any interest coupon appurtenant thereto shall be in such form and contain such statements or terms, not in conflict with law or with the appropriate authorizing resolution or resolutions, as the commission directs.
18.07 History
History: 1973 c. 90 s.
555m (2);
1981 c. 20.
18.08
18.08
Capital improvement fund. 18.08(1)(a)(a) All moneys resulting from the contracting of public debt shall be credited to a separate and distinct fund, established in the state treasury, designated as the capital improvement fund, except that such moneys which represent premium and accrued interest on bonds or notes issued, or are for purposes of funding or refunding bonds pursuant to
s. 18.06 (5) shall be credited to one or more of the sinking funds of the bond security and redemption fund or to the state building trust fund.
18.08(1)(b)
(b) Moneys within the capital improvement fund shall be segregated into separate and distinct accounts according to the program purposes defined under
ch. 20 for which public debt has been authorized by the legislature.
18.08(2)
(2) The capital improvement fund may be expended, pursuant to appropriations, only for the purposes and in the amounts for which the debts have been contracted, for the payment of principal and interest on loans or on notes, for the purposes identified under
s. 20.867 (2) (v) and
(4) (q) and for expenses incurred in contracting debt.
18.08(3)
(3) Moneys of the capital improvement fund may be commingled only for the purpose of investment with other public funds, but they shall be invested only as provided in
s. 18.04 (6) or
25.17 (3) (b). All such investments shall be the exclusive property of the fund and all earnings on or income from such investments shall be credited to the fund and shall, subject to
subs. (5) and
(6), become available for any of the purposes under
sub. (2). Before October 1, 1983, earnings from that portion created by self-amortizing projects may be transferred by resolution of the commission to the bond security and redemption fund to be used as provided in
s. 18.09 (4).
18.08(4)
(4) If at any time it appears that there will not be on hand in the capital improvement fund sufficient moneys for the payment of principal and interest on loans or on notes, the department of administration shall transfer to such fund, out of the appropriation made pursuant to
s. 20.866, a sum sufficient which, together with any available money on hand in such fund, is sufficient to make such payment.
18.08(5)
(5) Before October 31, 1983, there shall be transferred to the bond security and redemption fund the interest earnings accrued to the capital improvement fund before October 1, 1983 due to the investment of moneys from the contracting of public debt under
s. 20.866 (2) (u) to
(uv). These funds shall be used for meeting periodic principal, interest and premiums due, if any, on principal repayment and interest payments required from the transportation fund on this public debt.
18.08(6)
(6) Before October 31, 1983, there shall be transferred to the bond security and redemption fund the interest earnings accrued to the capital improvement fund before October 1, 1983, due to the investment of moneys from the contracting of public debt under
s. 20.866 (2) (tm) to
(to). These funds shall be used for meeting periodic principal, interest and premiums due, if any, on principal repayment and interest payments required from the general fund on this public debt.
18.09
18.09
Bond security and redemption fund. 18.09(1)
(1) When bonds are authorized, there shall be established in the state treasury a bond security and redemption fund separate and distinct from every other fund, which shall contain separate and distinct sinking funds for each particular bond issue.
