18.60(4)
(4) The commission may in addition to the other powers conferred by this subchapter, include a provision in any authorizing resolution for refunding bonds pledging all or any part of the income of any enterprise or program originally financed from the proceeds of any of the bonds or notes being refinanced, or pledging all or any part of the surplus income derived from the investment of any trust created under
sub. (3), or both.
18.60(5)
(5) All provisions of
s. 18.56 not inconsistent with the express provisions of this section shall apply to refunding bonds except that the maximum permissible term shall be 50 years from the date of original issue of the oldest note or bond issue being refunded.
18.60 History
History: 1977 c. 29.
18.61
18.61
Undertakings of state. 18.61(1)
(1) The state shall not be generally liable on revenue obligations and revenue obligations shall not be a debt of the state for any purpose whatsoever. All evidences of revenue obligation shall contain on their face a statement to that effect.
18.61(2)
(2) The state pledges and agrees with the holders of any evidences of revenue obligation that the state will not limit or alter its powers to fulfill the terms of any agreements made with the holders or in any way impair the rights and remedies of the holders until the revenue obligations, together with interest including interest on any unpaid instalments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of the holders, are fully met and discharged. The commission may include this pledge and agreement of the state in any agreement with the holders of notes or bonds and in any evidence of revenue obligation.
18.61(3)(a)(a) If the state fails to pay any revenue obligation in accordance with its terms, and default continues for a period of 30 days or if the state fails or refuses to comply with this subchapter or defaults in any agreement made with the holders of any issue of revenue obligations, the holders of 25% in aggregate principal amount of the revenue obligations of the issue then outstanding by instrument recorded in the office of the register of deeds of Dane county and approved or acknowledged in the same manner as a deed to be recorded may appoint a trustee to represent the holders of the notes or bonds for the purposes specifically provided in the instrument.
18.61(3)(b)
(b) The trustee may, and upon written request of the holders of 25% in aggregate principal amount of the revenue obligations of the issue then outstanding shall, in the trustee's own name:
18.61(3)(b)1.
1. By action or proceeding, enforce all rights of all holders of the issue of revenue obligations, including the right to require the state to collect enterprise or program income adequate to carry out any agreement as to, or pledge of, such income and to require the state to carry out any other agreements with the holders of the revenue obligations and to perform its duties under this subchapter;
18.61(3)(b)3.
3. By action, require the state to account as if it were the trustee of an express trust for the holders of the revenue obligations;
18.61(3)(b)4.
4. By action, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of the revenue obligations; and
18.61(3)(b)5.
5. Declare all the revenue obligations due and payable, and if all defaults shall be made good, the aggregate principal amount of the revenue obligations of the issue then outstanding, to annul the declaration and its consequences.
18.61(3)(c)
(c) The trustee shall have all of the powers necessary or appropriate for the exercise of any functions specifically set forth in this subchapter or incident to the general representation of the holders of revenue obligations in the enforcement and protection of their rights.
18.61(3)(d)
(d) Before declaring the principal of revenue obligations due and payable, the trustee shall first give 30 days' notice in writing to the governor and the attorney general.
18.61(3)(e)
(e) Any action or proceeding by the trustee against the state may be commenced by delivering a copy of the summons and of the complaint to the attorney general or leaving them at the attorney general's office with an assistant or clerk. The place of trial of such an action shall be as provided in
s. 801.50.
Sections 16.53 and
775.01 shall not apply to such claims. If there is final judgment against the state in such action, it shall be paid as provided in
s. 775.04, together with interest at the rate of 10% per year from the date payment was judged to have been due until the date of payment of the judgment.
18.61(4)
(4) Any public officer or public employe, as defined in
s. 939.22 (30), and the surety on the person's official bond, or any other person participating in any direct or indirect impairment of any fund established under this subchapter, shall be liable in any action brought by the attorney general in the name of the state, or by any taxpayer of the state, or by the holder of any evidence of revenue obligation payable in whole or in part, directly or indirectly, out of such fund, to restore to the fund all diversions from the fund.
18.61(5)
(5) The legislature may provide, with respect to any specific issue of revenue obligations, prior to their issuance, that if the enterprise or program income pledged to the payment of the principal and interest of the issue is insufficient for that purpose, it will consider supplying the deficiency by appropriation of funds, from time to time, out of the treasury. If the legislature so provides, the commission may make the necessary provisions therefor in the authorizing resolution and other proceedings of the issue. Thereafter, if the contingency occurs, recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that it shall make such appropriation.
18.62
18.62
Revenue obligations as legal investments. Any other provision of law to the contrary notwithstanding, the state, the investment board, all public officers, municipal corporations, political subdivisions and public bodies, all banks and bankers, savings and loan associations, credit unions, trust companies, savings banks and institutions, investment companies, insurance companies, insurance associations and other persons carrying on a banking or insurance business, and all executors, administrators, guardians, trustees and other fiduciaries, may legally invest any sinking funds, moneys or other funds belonging to them or within their control in any revenue obligations issued under this subchapter. Such revenue obligations shall be authorized security for all public deposits.
18.62 History
History: 1977 c. 29.
18.63
18.63
Validation of revenue obligations. 18.63(1)
(1) Notwithstanding any defects, irregularities, lack of power or failure to comply with any statute or any act of the commission, all revenue obligations issued or attempted to be issued after July 1, 1977 are declared to be valid; all instruments given after July 1, 1977 to evidence the obligation are declared to be binding, legal, valid, enforceable and incontestable in accordance with their terms; and all proceedings taken and certifications and determinations made after July 1, 1977 to authorize, issue, sell, execute, deliver or enter into the obligation or instruments are validated, ratified, approved and confirmed.
18.63(2)
(2) A determination, legislative, judicial or administrative, for any reason, that the state may not spend the proceeds of revenue obligations or that it has spent the proceeds for a purpose other than the stated purpose for which the revenue obligations were issued or for a purpose for which the state may not spend money, shall not affect the validity of the revenue obligations nor the evidence of revenue obligation therefor.
18.63 History
History: 1977 c. 29.
18.64
18.64
Minority financial advisers and investment firms. 18.64(1)(1) In this section, "minority financial adviser" and "minority investment firm" mean a financial adviser and investment firm, respectively, certified by the department of commerce under
s. 560.036 (2).
18.64(2)
(2) Except as provided under
sub. (7), in issuing evidences of revenue obligations by competitive sale, the commission shall ensure that at least 6% of the total of revenue obligations contracted in each fiscal year is underwritten by minority investment firms.
18.64(3)
(3) Except as provided under
sub. (7), in issuing evidences of revenue obligations by negotiated sale, the commission shall ensure that at least 6% of the total of revenue obligations contracted in each fiscal year is underwritten by minority investment firms.
18.64(4)
(4) Except as provided under
sub. (7), in issuing evidences of revenue obligations by competitive sale or negotiated sale, the commission shall ensure that at least 6% of the total moneys expended in such fiscal year for the services of financial advisers are expended for the services of minority financial advisers.
18.64(5)
(5) Except as provided under
sub. (7), an individual underwriter or syndicate of underwriters shall ensure that each bid or proposal, submitted by that individual or syndicate in a competitive or negotiated sale of a revenue obligation, provides for a portion of sales to minority investment firms.
18.64(6)
(6) The commission shall annually report to the department of administration the total amount of revenue obligations contracted with the underwriting services of minority investment firms and the total amount of moneys expended for the services of minority financial advisers during the preceding fiscal year.
18.64(7)
(7) The requirements of any of
subs. (2) to
(5) do not apply to an issuance of evidence of a revenue obligation, if the secretary of administration submits a report in writing specifying the building commission's reasons for not complying with the requirements of any of
subs. (2) to
(5) for that issuance.
OPERATING NOTES
18.70
18.70
Provisions applicable. The following sections apply to this subchapter, except that all references to "public debt", "debt" or "revenue obligation" are deemed to refer to "operating notes", all references to "evidence of indebtedness" are deemed to refer to "evidence of operating note", and all references to "evidences of indebtedness" are deemed to refer to "evidences of operating notes":
ss. 18.03,
18.06 (8),
18.07,
18.10 (1),
(2),
(4) to
(9) and
(11),
18.17,
18.52 (1),
18.58 (2),
18.61 (1),
18.62 and
18.63.
18.70 History
History: 1983 a. 3;
1991 a. 39.
18.71
18.71
Definitions. In this subchapter, unless the context requires otherwise:
18.71(1)
(1) "Commission" means the building commission.
18.71(2)
(2) "Department" means the department of administration.
18.71(3)
(3) "Evidence of operating note" means a written promise to pay an operating note.
18.71(4)
(4) "Operating note" means every undertaking of the state to repay a certain amount of a financial obligation which is:
18.71(4)(a)
(a) Created for the purpose of funding operating deficits of the state as determined under
s. 16.405 (1), which must be repaid not later than the last day of the fiscal year during which the operating note is issued;
18.71(4)(b)
(b) Payable from and secured solely by revenues pledged by the commission and the department pursuant to the authorizing resolution provided that all such pledged revenues must first be available for the payment of public debt; and
18.71 Annotation
See note to Art. VIII, sec. 4, citing State ex rel. La Follette v. Stitt, 114 W (2d) 358, 338 NW (2d) 684 (1983).
18.72
18.72
Purposes of operating notes. 18.72(1)
(1) The commission may authorize financial obligations to be incurred and evidences of operating notes to be issued therefor in an amount sufficient to fund or refund the whole or any part of any operating note issued under this subchapter. However, no operating notes originally issued in a fiscal year may be funded or refunded by proceeds of an operating note to mature in a later fiscal year.
18.72(2)
(2) The commission may authorize financial obligations to be incurred and evidences of operating notes to be issued therefor to fund operating deficits as moneys are required. The requirements for moneys shall be established by the department.
18.72(3)
(3) Each purpose specified in
subs. (1) and
(2) may include the expenses of issuance of the operating notes and reserves securing the operating notes.
18.72(4)
(4) No operating note issued under this section may have a maturity date later than the last day of the fiscal year during which the operating note is issued.
18.72 History
History: 1983 a. 3;
1985 a. 29.
18.725
18.725
Limit on amount of operating notes. The building commission may not sell operating notes under
s. 18.73 (2) at any time if the amount of operating notes to be sold at that time plus the amount of operating notes outstanding at that time exceed 10% of the amounts shown in the schedule under
s. 20.005 (3) of appropriations of general purpose revenues, as defined in
s. 20.001 (2) (a), plus the amounts shown in the schedule of appropriations of program revenues, as defined in
s. 20.001 (2) (b), both calculated as of that time and for that fiscal year.
18.725 History
History: 1985 a. 29.
18.73(1)(1)
Authorizing resolution. No financial obligations may be incurred under this subchapter nor may any evidence of operating notes be issued by the state except upon submission of a request by the department under
s. 16.405 and pursuant to an authorizing resolution of the commission. Each authorizing resolution shall state each purpose of the operating notes it authorizes, which need not be more specific but may not be more general than those purposes provided in or pursuant to law, and the maximum principal amount of the operating notes. The operating notes may be designated by any name as determined by the commission.
18.73(2)
(2) Sale. Operating notes may be sold at either public or private sale. The commission may provide in an authorizing resolution for the refunding of operating notes, for their exchange privately, in payment and discharge of any of the outstanding operating notes being refunded. All operating notes sold at public sale shall be noticed as provided in the authorizing resolution. Any bids received at public sale may be rejected.
18.73(4)
(4) Exercise of authority. Financial obligations may be incurred and evidences of operating notes issued therefor pursuant to one or more authorizing resolutions, unless otherwise provided in the resolution or in this subchapter, at any time and from time to time, for any combination of purposes, in any specific amounts, at any rates of interest, for any term, payable at any intervals, at any place, in any manner and having any other terms or conditions deemed necessary or useful. Unless sooner exercised or unless a shorter period is provided in the resolution, every authorizing resolution shall expire 3 months after the date of its adoption.
18.74
18.74
Application of operating note proceeds. All moneys resulting from the contracting of operating notes shall be credited to the general fund, except that moneys which represent premium and accrued interest on operating notes, or moneys for purposes of funding or refunding operating notes pursuant to
s. 18.72 (1) shall be credited to the operating note redemption fund.
18.74 History
History: 1983 a. 3.
18.75
18.75
Operating note redemption fund. 18.75(1)
(1) When operating notes are authorized, there shall be established in the state treasury or with a trustee if so required in the authorizing resolution, an operating note redemption fund separate and distinct from every other fund, which may contain separate and distinct accounts for each particular operating note issue.
18.75(2)
(2) The operating note redemption fund shall be expended and all moneys from time to time on hand therein are irrevocably appropriated, in sums sufficient, only for the payment of principal and interest on operating notes giving rise to it and premium, if any, due upon refunding or early redemption of such operating notes.
18.75(3)
(3) Moneys of the operating note redemption fund may be commingled only for the purpose of investment with other public funds, but they may be invested only as provided in the authorizing resolution. All such reinvestments shall be the exclusive property of such fund and all earnings on or income from such investments shall be used in meeting principal and interest payments on operating notes issued.
18.75(4)
(4) There shall be transferred, under
s. 20.855 (1) (a), a sum sufficient for the payment of the principal, interest and premium due, if any, on the operating notes giving rise to it as the same falls due. Such transfers shall be so timed that there is at all times on hand in the fund an amount not less than the amount to be paid out of it during the ensuing 30 days or such other period if so provided for in the authorizing resolution. The commission may pledge the deposit of additional amounts at periodic intervals and the secretary of the department may impound moneys of the general fund, including moneys temporarily reallocated from other funds under
s. 20.002 (11), in accordance with the pledge of revenues in the authorizing resolution, and all such impoundments are deemed to be payments for purposes of
s. 16.53 (10), but no such impoundment may be made until the amounts to be paid into the bond security and redemption fund under
s. 18.09 during the ensuing 30 days have been deposited in the bond security and redemption fund.
18.75 History
History: 1983 a. 3;
1985 a. 29 s.
3202 (56).
18.76
18.76
Suits against the state. 18.76(1)
(1)
In general. This section governs all civil claims, suits, proceedings and actions respecting operating notes notwithstanding any contrary provision of the statutes.
18.76(2)
(2) To recover an operating note. If the state fails to pay any operating note in accordance with its terms, an action to compel such payment may be commenced against the state in accordance with
s. 801.02. The plaintiff shall serve an authenticated copy of the summons and complaint on the attorney general by leaving the copies at the attorney general's office in the capitol with an assistant or clerk. The place of trial of such an action shall be as provided in
s. 801.50.
18.76(3)
(3) Judgment. Sections 16.007 and
775.01 do not apply to such claims for payment of operating notes. If there is final judgment against the state in such an action, it shall be paid as provided in
s. 775.04 together with interest thereon at the rate of 10% per year from the date the payment was judged to have been due until the date of payment of the judgment.
18.76 History
History: 1983 a. 3;
1983 a. 228 s.
16.
18.77
18.77
Minority financial advisers and investment firms. 18.77(1)(1) In this section, "minority financial adviser" and "minority investment firm" mean a financial adviser and investment firm, respectively, certified by the department of commerce under
s. 560.036 (2).
18.77(2)
(2) Except as provided under
sub. (7), in contracting operating notes by competitive sale, the commission shall ensure that at least 6% of total operating note indebtedness contracted in each fiscal year is underwritten by minority investment firms.
18.77(3)
(3) Except as provided under
sub. (7), in contracting operating notes by negotiated sale, the commission shall ensure that at least 6% of total operating note indebtedness contracted in each fiscal year is underwritten by minority investment firms.
18.77(4)
(4) Except as provided under
sub. (7), in contracting operating notes by competitive sale or negotiated sale, the commission shall ensure that at least 6% of the total moneys expended in such fiscal year for the services of financial advisers are expended for the services of minority financial advisers.
18.77(5)
(5) Except as provided under
sub. (7), an individual underwriter or syndicate of underwriters shall ensure that each bid or proposal, submitted by that individual or syndicate in a competitive or negotiated sale of an operating note, provides for a portion of sales to minority investment firms.
18.77(6)
(6) The commission shall annually report to the department of administration the total amount of operating note indebtedness contracted with the underwriting services of minority investment firms and the total amount of moneys expended for the services of minority financial advisers during the preceding fiscal year.
18.77(7)
(7) The requirements of any of
subs. (2) to
(5) do not apply to a contracting of operating notes, if the secretary of administration submits a report in writing to the joint committee on finance specifying the building commission's reasons for not complying with the requirements of any of
subs. (2) to
(5) for that contracting.
HIGHER EDUCATION BONDS
18.81
18.81
Definitions. In this subchapter:
18.81(1)
(1) "Commission" means the building commission.
