281.59(1m)(a)(a) There is established a clean water fund program, administered under
s. 281.58, with financial management provided under this section.
281.59(1m)(b)
(b) There is established a safe drinking water loan program, administered under
s. 281.61, with financial management provided under this section.
281.59(1m)(c)
(c) There is established a private sewage system replacement and rehabilitation loan program, administered under
s. 145.245 (12m).
281.59(2)
(2) General duties. The department of administration shall:
281.59(2)(b)
(b) Cooperate with the department in administering the clean water fund program, the safe drinking water loan program and the land recycling loan program.
281.59(2)(c)
(c) Accept and hold any letter of credit from the federal government through which the state receives federal capitalization grant payments and disbursements to the environmental improvement fund.
281.59(2m)
(2m) Investment management; environmental improvement fund. 281.59(2m)(a)1.
1. Subject to
par. (b), direct the investment board under
s. 25.17 (2) (d) to make any investment of the environmental improvement fund, or in the collection of the principal and interest of all moneys loaned or invested from that fund.
281.59(2m)(a)2.
2. Subject to
par. (b), purchase or acquire, commit on a standby basis to purchase or acquire, sell, discount, assign, negotiate, or otherwise dispose of, or pledge, hypothecate or otherwise create a security interest in, loans as the department of administration may determine, or portions or portfolios of participations in loans, made or purchased under this section. The disposition may be at the price and under the terms that the department of administration determines to be reasonable and may be at public or private sale.
281.59(2m)(b)
(b) The department of administration shall take an action under
par. (a) only if all of the following conditions occur:
281.59(2m)(b)1.
1. The action provides a financial benefit to the environmental improvement fund.
281.59(2m)(b)2.
2. The action does not contradict or weaken the purposes of the environmental improvement fund.
281.59(2m)(b)3.
3. The building commission approves the action before the department of administration acts.
281.59(3)
(3) Financial management; biennial finance plan. 281.59(3)(a)(a) By October 1 of each even-numbered year, the department of administration and the department jointly shall prepare a biennial finance plan that includes all of the following information:
281.59(3)(a)1.
1. An estimate of the wastewater treatment, safe drinking water and land recycling project needs of the state for the 4 fiscal years of the next 2 biennia.
281.59(3)(a)2.
2. The total amount of financial assistance planned to be provided or committed for projects under
subd. 1. during the next biennium.
281.59(3)(a)4.
4. The extent to which the funding for the clean water fund program and the safe drinking water loan program, in the environmental improvement fund, will be maintained in perpetuity.
281.59(3)(a)4m.
4m. A chart showing detailed projected sources and uses of funds for projects under
subd. 1. during the next biennium.
281.59(3)(a)5.
5. The most recent available audited financial statements of the past operations and activities of the clean water fund program, the safe drinking water loan program and the land recycling loan program, the estimated environmental improvement fund capital available in each of the next 4 fiscal years for the clean water fund program and the safe drinking water loan program, and the projected environmental improvement fund balance for the clean water fund program and the safe drinking water loan program for each of the next 20 years given existing obligations and financial conditions.
281.59(3)(a)5m.
5m. The percentage of market interest rate for the projects under
subd. 1.
281.59(3)(a)6.
6. An amount equal to the estimated present value of subsidies for all clean water fund program loans and grants expected to be made for the wastewater treatment projects listed in the biennial needs list under
s. 281.58 (3m), except for federal financial hardship assistance grants under
s. 281.58 (13), discounted at a rate of 7% per year to the first day of the biennium for which the biennial finance plan is prepared.
281.59(3)(a)6e.
6e. An amount equal to the estimated present value of subsidies for all loans under the land recycling loan program to be made during the biennium for which the biennial finance plan is prepared, discounted at a rate of 7% per year to the first day of that biennium.
281.59(3)(a)6m.
6m. An amount equal to the estimated present value of subsidies for all loans under the safe drinking water loan program to be made during the biennium for which the biennial finance plan is prepared, discounted at a rate of 7% per year to the first day of that biennium.
281.59(3)(a)7.
7. A discussion of the assumptions made in calculating the amounts under
subds. 6.,
6e. and
6m.
281.59(3)(a)8.
8. The amount and description of any fee expected to be charged during the next biennium under this section.
281.59(3)(a)9.
9. The impact of the biennial finance plan on the guideline under
par. (b).
281.59(3)(b)
(b) The department of administration and the department shall consider as a guideline in preparing the portion of the biennial finance plan for the clean water fund program that all state water pollution abatement general obligation debt service costs should not exceed 50% of all general obligation debt service costs to the state.
281.59(3)(bm)
(bm) The department and the department of administration jointly shall prepare and submit copies of all of the following to the building commission under
s. 13.48 (26), to the joint committee on finance and to the chief clerk of each house of the legislature, for distribution under
s. 13.172 (3) to the appropriate legislative standing committees generally responsible for legislation related to environmental issues:
281.59(3)(bm)1.
1. By October 1 of each even-numbered year, the version of the biennial finance plan initially prepared as part of the budget process.
281.59(3)(bm)2.
2. No later than 30 days after the day on which the biennial budget is submitted to the legislature under
s. 16.45, amendments to the biennial finance plan that update the plan to reflect material approved by the governor for inclusion in the budget.
281.59(3)(bm)3.
3. No later than 30 days after the day on which the governor signs the biennial budget, a version of the biennial finance plan, updated to reflect the adopted biennial budget act.
281.59(3)(br)
(br) The joint committee on finance and each standing committee may submit to the building commission its recommendations and comments regarding each version of the biennial finance plan and amendments to the biennial finance plan, and whether the version of the biennial finance plan updated to reflect the adopted biennial budget act should be approved or disapproved as specified under
s. 13.48 (26). If the building commission disapproves the version of the biennial finance plan that is updated to reflect the adopted biennial budget act, the department and the department of administration shall submit a revised biennial finance plan to the building commission.
281.59(3)(j)
(j) No later than November 1 of each odd-numbered year, the department of administration and the department jointly shall submit a report, to the building commission and committees as required under
par. (bm), on the implementation of the amount established under
sub. (3e) (b) as required under
s. 281.58 (9m) (e), and on the operations and activities of the clean water fund program, the safe drinking water loan program and the land recycling loan program for the previous biennium.
281.59(3e)
(3e) Clean water fund program expenditures. 281.59(3e)(a)(a) No moneys may be expended for the clean water fund program in a biennium until the legislature reviews and approves all of the following as part of the biennial budget act for the biennium:
281.59(3e)(a)1.
1. An amount of present value of the subsidy for the clean water fund program, except for federal financial hardship assistance grants under
s. 281.58 (13), that is specified for that biennium under
par. (b) and is based on the amount included in the biennial finance plan under
sub. (3) (a) 6.
281.59(3e)(a)2.
2. The amount of public debt, authorized under
s. 20.866 (2) (tc), that the state may contract for the purposes of the clean water fund program.
281.59(3e)(a)3.
3. The amount of revenue obligations, authorized under
sub. (4) (f), that may be issued for the purposes of the clean water fund program.
281.59(3e)(b)
(b) The amount of present value of the subsidy for the clean water fund program that is required to be specified under
par. (a) 1. and approved by the legislature under this paragraph is as follows:
281.59(3e)(b)3.
3. Equal to $1,000 for any biennium after the 1999-01 biennium.
281.59(3e)(c)
(c) The department of administration may allocate amounts approved under
par. (b) as the present value of subsidies for financial assistance under the clean water fund program, including financial hardship assistance and assistance for the additional costs of approved projects. The department of administration may allocate amounts from the amount approved under
par. (b) for a biennium until December 30 of the fiscal year immediately following the biennium for projects for which complete applications under
s. 281.58 (9) (a) are submitted before the end of the biennium.
281.59(3e)(d)
(d) The department may expend, for financial assistance in a biennium other than financial hardship assistance under
s. 281.58 (13) (e), an amount up to 85% of the amount approved by the legislature under
par. (b). The department may expend such amount only from the percentage of the amount approved under
par. (b) that is not available under
par. (e) for financial hardship assistance.
281.59(3e)(e)
(e) The department may expend, for financial hardship assistance, other than federal financial hardship assistance grants under
s. 281.58 (13) (be), in a biennium under
s. 281.58 (13) (e), an amount up to 15% of the amount approved by the legislature under
par. (b) for that biennium. The department may expend such amount only from the percentage of the amount approved by the legislature under
par. (b) that is not available under
par. (d) for financial assistance.
281.59(3e)(f)
(f) Using the amount approved under
par. (b) as a base, the department of administration shall calculate the present value of the actual subsidy of each clean water fund program loan or grant to be made for those projects in each biennium that are approved for financial assistance by the 2 departments. The present value shall be discounted as provided under
sub. (3) (a) 6.
281.59(3m)
(3m) Land recycling loan program expenditures. 281.59(3m)(a)(a) No moneys may be expended for the land recycling loan program in a biennium until the legislature reviews and approves, as part of the biennial budget act for the biennium, an amount of present value of the subsidy for the land recycling loan program that is specified for that biennium under
par. (b) and is based on the amount included in the biennial finance plan under
sub. (3) (a) 6e.
281.59(3m)(b)
(b) The amount of present value of the subsidy for the land recycling loan program that is approved by the legislature under this paragraph is as follows:
281.59(3m)(b)2.
2. Equal to $1,000 for any biennium after the 1999-01 biennium.
281.59(3m)(c)
(c) The department of administration may allocate amounts approved under
par. (b) as the present value of subsidies for financial assistance under the land recycling program.
281.59(3m)(d)
(d) Using the amount approved under
par. (b) as a base, the department of administration shall calculate the present value of the actual subsidy of each land recycling loan made for those projects in each biennium that are approved for financial assistance. The present value shall be discounted as provided under
sub. (3) (a) 6e.
281.59(3s)
(3s) Safe drinking water loan program expenditures. 281.59(3s)(a)(a) No moneys may be expended for the safe drinking water loan program in a biennium until the legislature reviews and approves all of the following as part of the biennial budget act for the biennium:
281.59(3s)(a)1.
1. An amount of present value of the subsidy for the safe drinking water loan program that is specified for that biennium under
par. (b) and is based on the amount included in the biennial finance plan under
sub. (3) (a) 6m.
281.59(3s)(a)2.
2. The amount of public debt, authorized under
s. 20.866 (2) (td), that the state may contract for the purposes of the safe drinking water loan program.
281.59(3s)(b)
(b) The amount of present value of the subsidy for the safe drinking water loan program that is approved by the legislature under this paragraph is as follows:
281.59(3s)(b)2.
2. Equal to $1,000 for any biennium after the 1999-01 biennium.
281.59(3s)(c)
(c) The department of administration may allocate amounts approved under
par. (b) as the present value of subsidies for financial assistance under the safe drinking water program.
281.59(3s)(d)
(d) Using the amount approved under
par. (b) as a base, the department of administration shall calculate the present value of the actual subsidy of each safe drinking water loan made for those projects in each biennium that are approved for financial assistance. The present value shall be discounted as provided under
sub. (3) (a) 6m.
281.59(4)(a)(a) The clean water fund program are revenue-producing enterprises or programs, as defined in
s. 18.52 (6).
281.59(4)(am)
(am) Deposits, appropriations or transfers to the environmental improvement fund for the purposes of the clean water fund program may be funded with the proceeds of revenue obligations issued subject to and in accordance with
subch. II of ch. 18 or in accordance with
subch. IV of ch. 18 if designated a higher education bond.
281.59(4)(b)
(b) The department of administration may, under
s. 18.561 or
18.562, deposit in a separate and distinct fund in the state treasury or in an account maintained by a trustee outside the state treasury, any portion of the revenues derived under
s. 25.43 (1). The revenues deposited with a trustee outside the state treasury are the trustee's revenues in accordance with the agreement between this state and the trustee or in accordance with the resolution pledging the revenues to the repayment of revenue obligations issued under this subsection.
281.59(4)(c)
(c) The building commission may pledge any portion of revenues received or to be received in the fund established in
par. (b) or the environmental improvement fund to secure revenue obligations issued under this subsection. The pledge shall provide for the transfer to the environmental improvement fund of all pledged revenues, including any interest earned on the revenues, which are in excess of the amounts required to be paid under
s. 20.320 (1) (c) and
(u) for the purposes of the clean water fund program. The pledge shall provide that the transfers be made at least twice yearly, that the transferred amounts be deposited in the environmental improvement fund and that the transferred amounts are free of any prior pledge.
281.59(4)(d)
(d) The department of administration shall have all other powers necessary and convenient to distribute the pledged revenues and to distribute the proceeds of the revenue obligations in accordance with
subch. II of ch. 18 or in accordance with
subch. IV of ch. 18 if designated a higher education bond.
281.59(4)(e)
(e) The department of administration may enter into agreements with the federal government or its agencies, political subdivisions of this state, individuals or private entities to insure or in any other manner provide additional security for the revenue obligations issued under this subsection.
281.59(4)(f)
(f) Revenue obligations may be contracted by the building commission when it reasonably appears to the building commission that all obligations incurred under this subsection can be fully paid on a timely basis from moneys received or anticipated to be received. Revenue obligations issued under this subsection for the clean water fund program shall not exceed $1,297,755,000 in principal amount, excluding obligations issued to refund outstanding revenue obligation notes.
281.59(4)(g)
(g) Unless otherwise expressly provided in resolutions authorizing the issuance of revenue obligations or in other agreements with the holders of revenue obligations, each issue of revenue obligations under this subsection shall be on a parity with every other revenue obligation issued under this subsection and in accordance with
subch. II of ch. 18 or with
subch. IV of ch. 18 if designated a higher education bond.
281.59(9)
(9) Conditions of financial assistance. 281.59(9)(a)(a) A loan approved under the clean water fund program, the safe drinking water loan program or the land recycling loan program shall be for no longer than 20 years, as determined by the department of administration, be fully amortized not later than 20 years after the original date of the financial assistance agreement, and require the repayment of principal and interest, if any, to begin not later than 12 months after the expected date of completion of the project that it funds, as determined by the department of administration.
281.59(9)(am)
(am) The department of administration, in consultation with the department, may establish those terms and conditions of a financial assistance agreement that relate to its financial management, including what type of municipal obligation, as set forth under
sub. (13f), is required for the repayment of the financial assistance. Any terms and conditions established under this paragraph by the department of administration shall comply with the requirements of this section and
s. 281.58,
281.60 or
281.61. In setting the terms and conditions, the department of administration may consider factors that the department of administration finds are relevant, including the type of obligation evidencing the loan, the pledge of security for the obligation and the applicant's creditworthiness.
281.59(9)(b)
(b) As a condition of receiving financial assistance under the clean water fund program, the safe drinking water loan program or the land recycling loan program, an applicant shall do all of the following:
281.59(9)(b)1.
1. Pledge the security, if any, required by the rules promulgated by the department of administration under this section and
s. 281.58,
281.60 or
281.61.
281.59(9)(b)2.
2. Demonstrate to the satisfaction of the department of administration the financial capacity to assure sufficient revenues to operate and maintain the project for its useful life and to pay the debt service on the obligations that it issues for the project.
281.59(11)(a)(a) The department of natural resources and the department of administration may enter into a financial assistance agreement with an applicant for which the department of administration has allocated subsidy under
s. 281.58 (9m),
281.60 (8) or
281.61 (8) if the applicant meets the conditions under
sub. (9) and the other requirements under this section and
s. 281.58,
281.60 or
281.61.
281.59(11)(am)
(am) The department of administration shall make the financial assistance payments to an applicant that has entered into a financial assistance agreement under
par. (a) or to the applicant's designated agent.
281.59(11)(b)
(b) If a municipality fails to make a principal repayment or interest payment after its due date, the department of administration shall place on file a certified statement of all amounts due under this section and
s. 281.58,
281.60 or
281.61. After consulting the department, the department of administration may collect all amounts due by deducting those amounts from any state payments due the municipality or may add a special charge to the amount of taxes apportioned to and levied upon the county under
s. 70.60. If the department of administration collects amounts due, it shall remit those amounts to the fund to which they are due and notify the department of that action.
281.59(11)(c)
(c) The department of administration may retain the last payment under a financial assistance agreement until the department of natural resources and the department of administration determine that the project is completed and meets the applicable requirements of this section and
s. 281.58,
281.60 or
281.61 and that the conditions of the financial assistance agreement are met.
281.59(12)
(12) Municipal obligations. The department of administration may purchase or refinance obligations specified in
s. 281.58 (6) (b) 1. and guarantee or purchase insurance for municipal obligations specified in
s. 281.58 (6) (b) 3. if the department of administration and the department of natural resources approve the financial assistance under this section and
s. 281.58.
281.59(13)(a)1.1. Notwithstanding any other provision of this section and
s. 281.58, a municipality that submits to the department by January 2, 1989, a facility plan meeting the requirements of
s. 281.57 which is approvable under this chapter and that does not receive a grant award before July 1, 1990, only because the municipality is following a schedule contained in the facility plan and approved by the department and the municipality is in compliance with all applicable schedules contained in a permit issued under
ch. 283 or because there are insufficient grant funds under
s. 281.57, is eligible to receive financial assistance under this paragraph. The form of the financial assistance is a loan with an interest rate of 2.5% per year except that
s. 281.58 (8) (b),
(f) and
(k) applies to projects receiving financial assistance under this paragraph.
