18.13
18.13
Suits against the state. 18.13(1)
(1)
In general. This section and
ss. 18.14 and
18.15 shall govern all civil claims, suits, proceedings and actions respecting public debt notwithstanding any contrary provision of the statutes.
18.13(2)
(2) To recover a debt. If the state fails to pay any public debt 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.
18.13(3)
(3) Judgment. Sections 16.53 and
775.01 shall not apply to such claims for payment of a public debt. If there is final judgment against the state in such 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 such payment was judged to have been due until the date of payment of such judgment.
18.14
18.14
Validation of debt. 18.14(1)(1) Notwithstanding any defects, irregularities, lack of power or failure to comply with any statute or any act of the commission, all public debt contracted or attempted to be contracted after December 7, 1969 is declared to be valid and entitled to the pledge made by
s. 18.12; all instruments given after December 7, 1969 to evidence such debt 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 December 7, 1969 to authorize, issue, sell, execute, deliver or enter into such debt or such instruments are validated, ratified, approved and confirmed.
18.14(2)
(2) A determination, legislative, judicial or administrative, for any reason, that the state may not spend the proceeds of contracted public debt, or that it has spent such proceeds for a purpose other than the stated purpose for which such public debt was contracted or for a purpose for which the state may not spend money, shall not affect the validity of such public debt nor the evidence of indebtedness therefor.
18.14 History
History: 1973 c. 90 s.
555m (2).
18.15
18.15
Diversion of funds, liability of officers for. Any public officer or public employee, as defined in
s. 939.22 (30), and the surety on the official bond of the officer or employee, or any other person participating in any direct or indirect impairment of the capital improvement fund or bond security and redemption fund, shall be liable in an 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 indebtedness payable in whole or in part, directly or indirectly, out of such fund, to restore to such fund all diversions therefrom.
18.15 History
History: 1991 a. 316.
18.16
18.16
Minority financial advisers and investment firms. 18.16(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).
18.16(2)
(2) Except as provided under
sub. (7), in contracting public debt by competitive sale, the commission shall ensure that at least 6% of total public indebtedness contracted in each fiscal year is underwritten by minority investment firms.
18.16(3)
(3) Except as provided under
sub. (7), in contracting public debt by negotiated sale, the commission shall ensure that at least 6% of total public indebtedness contracted in each fiscal year is underwritten by minority investment firms.
18.16(4)
(4) Except as provided under
sub. (7), in contracting public debt by competitive sale or negotiated sale, the commission shall ensure that at least 6% of the total moneys expended in each fiscal year for the services of financial advisers are expended for the services of minority financial advisers.
18.16(5)
(5) Except as provided under
s. 18.06 (9) and
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 public debt, provides for a portion of sales to minority investment firms.
18.16(6)
(6) The commission shall annually report to the department of administration the total amount of public 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.
18.16(7)
(7) The requirements of any of
subs. (2) to
(5) do not apply to a contracting of public debt, 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 of public debt.
18.17
18.17
Full authority. This chapter shall constitute full authority for the accomplishment of all acts authorized in this chapter to be done. No other law restricting the carrying out of such acts shall be construed as applying to proceedings had or acts done pursuant to this chapter.
REVENUE OBLIGATIONS
18.51
18.51
Provisions applicable. The following sections apply to this subchapter, except that all references to "public debt" or "debt" shall be read to refer to a "revenue obligation" and all references to "evidences of indebtedness" shall be read to refer to "evidences of revenue obligation":
ss. 18.02,
18.03,
18.07,
18.10 (1),
(2),
(4) to
(9),
(11), and
(12), and
18.17.
18.52
18.52
Definitions. In this subchapter, unless the context requires otherwise:
18.52(1c)
(1c) "Aggregate expected debt service and net exchange payments" means the sum of the following:
18.52(1c)(a)
(a) The aggregate net payments expected to be made and received under a specified interest exchange agreement under
s. 18.55 (6) (a).
18.52(1c)(b)
(b) The aggregate debt service expected to be made on obligations related to that agreement.
18.52(1c)(c)
(c) The aggregate net payments expected to be made and received under all other interest exchange agreements under
s. 18.55 (6) (a) relating to those obligations that are in force at the time of executing the agreement.
18.52(1e)
(1e) "Ancillary payments" means payments for issuance costs and expenses, payments under contracts entered into under
s. 18.55 (6), payments of accrued or funded interest, and payments of other costs and expenses of administering revenue obligations.
18.52(1m)
(1m) "Authorizing resolution" means any resolution adopted by the commission under this subchapter which authorizes the contracting of a revenue obligation.
18.52(2)
(2) "Commission" means the building commission.
18.52(2m)
(2m) "Enterprise obligation" means every undertaking by the state to repay a certain amount of borrowed money that is all of the following:
18.52(2m)(a)
(a) Created for the purpose of purchasing, acquiring, leasing, constructing, extending, expanding, adding to, improving, conducting, controlling, operating or managing a revenue-producing enterprise or program.
18.52(2m)(b)
(b) Payable from and secured by the property or income or both of the enterprise or program.
18.52(3)
(3) "Evidence of revenue obligation" means a written promise to pay a revenue obligation.
18.52(4)
(4) "Public debt" means every voluntary, unconditional undertaking by the state to repay a certain amount of borrowed money:
18.52(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
18.52(4)(b)
(b) For which any existing asset of the state is pledged, except the pledge of an outstanding evidence of indebtedness without recourse.
18.52(5)
(5) "Revenue obligation" means an enterprise obligation or a special fund obligation. A revenue obligation may be both an enterprise obligation and a special fund obligation.
18.52(6)
(6) "Revenue-producing enterprise" or "program" means every state enterprise or program deemed by the legislature to be likely to produce sufficient net income to pay when due the principal and interest of revenue obligations to be issued in connection therewith.
18.52(7)
(7) "Special fund obligation" means every undertaking by the state to repay a certain amount of borrowed money that is all of the following:
18.52(7)(a)
(a) Payable from a special fund consisting of fees, penalties or excise taxes.
18.52(8)
(8) "Special fund program" means a state program or purpose with respect to which the legislature has determined that financing with special fund obligations is appropriate and will serve a public purpose.
18.53
18.53
Purposes of revenue obligations and amounts. 18.53(1)(1) The commission may authorize money to be borrowed and evidences of revenue obligation to be issued therefor in an amount sufficient to fund or refund, as provided in
s. 18.60, the whole or any part of:
18.53(1)(a)
(a) Any revenue obligation issued under this subchapter.
18.53(2)
(2) The commission may authorize money to be borrowed and evidences of revenue obligation to be issued therefor, in an amount sufficient, as provided in
s. 18.59:
18.53(2)(a)
(a) To anticipate the sale of revenue-obligation bonds.
18.53(2)(b)
(b) To renew the whole or any part of any revenue-bond anticipation notes then outstanding.
18.53(3)
(3) The commission shall authorize money to be borrowed and evidences of revenue obligation to be issued. The requirements for funds shall be established by the state department or agency head carrying out program responsibilities for which the revenue obligations have been authorized by the legislature, but shall not exceed the following:
18.53(3)(a)
(a) In the case of enterprise obligations, the amounts specified by the legislature to purchase, acquire, lease, construct, extend, expand, add to, improve, conduct, control, operate or manage such revenue-producing enterprises or programs as are specified by the legislature.
18.53(3)(b)
(b) In the case of special fund obligations, the amount specified by the legislature for such expenditures to be paid from special fund obligations.
18.53(4)
(4) Unless otherwise provided in laws applicable to the issuance of a specific revenue obligation, in addition to the requirements established under
sub. (3), the commission shall establish the amounts required for ancillary payments and establishment of reserves relating to the revenue obligations.
18.54
18.54
Limitations on revenue obligations. 18.54(1)
(1) The amount of evidences of revenue obligation issued or outstanding for the purposes specified in
s. 18.53 (1) and
(2) are subject only to the limits provided in this subchapter.
18.54(2)
(2) The amount of evidences of revenue obligation issued or outstanding for purposes specified by the legislature under
s. 18.53 (3) and
(4) are subject only to the limits provided in the legislation which authorizes that revenue obligation. No refunding obligation is subject to any limitation specified by that legislation.
18.55(1)(1)
Authorizing resolution. No money may be borrowed under this subchapter nor any evidence of revenue obligation issued by the state except pursuant to an authorizing resolution. Each authorizing resolution shall state each purpose of the revenue obligation it authorizes, which need not be more specific but shall not be more general than those purposes provided in or pursuant to law, and the maximum principal amount of revenue obligations authorized for each such purpose.
18.55(2)
(2) Bond anticipation notes. Revenue-obligation bond anticipation notes may be sold at public or private sale or, in the case of renewal notes, exchanged privately for and in payment and discharge of any of the outstanding notes being renewed, as provided in the authorizing resolution.
18.55(3)
(3) Revenue obligations. Revenue obligations may be sold at either public or private sale. The commission may provide in the authorizing resolution for refunding obligations that they be exchanged privately in payment and discharge of any of the outstanding bonds or notes being refunded. All revenue obligations sold at public sale shall be noticed as provided in the authorizing resolution. Any or all bids received at public sale may be rejected.
18.55(4)
(4) No minimum issuance price. Revenue obligation bonds may be sold at any price or percentage of par value.
18.55(5)
(5) Exercise of authority. Money may be borrowed and evidences of revenue obligation 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. Revenue obligation bonds may bear interest at variable or fixed rates, bear no interest or bear interest payable only at maturity or upon redemption prior to maturity. Unless sooner exercised or unless a different period is provided in the resolution, every authorizing resolution, except as provided in
s. 18.59 (1), shall expire one year after the date of its adoption.
18.55(6)
(6) Agreements and arrangements; delegation; use of revenue obligations. 18.55(6)(a)(a) Subject to
pars. (d) and
(e), at the time of, or in anticipation of, contracting revenue obligations and at any time thereafter while the revenue obligations are outstanding, the commission may enter into agreements and ancillary arrangements relating to the revenue obligations, including trust indentures, liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. Any payment made or received pursuant to any such agreements or ancillary arrangements shall be made from or deposited into a fund relating to the relevant revenue obligation, as determined by the commission. The determination of the commission included in an interest exchange agreement that such an agreement relates to a revenue obligation shall be conclusive.
18.55(6)(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).
18.55(6)(c)
(c) Any revenue obligations may include revenue obligations contracted to fund interest, accrued or to accrue, on the revenue obligations.
18.55(6)(d)
(d) With respect to any interest exchange agreement or agreements specified in
par. (a), all of the following shall apply:
18.55(6)(d)1.
1. The commission shall contract with an independent financial consulting firm to determine if the terms and conditions of the agreement reflect a fair market value, as of the proposed date of the execution of the agreement.
18.55(6)(d)2.
2. The interest exchange agreement must identify by maturity, bond issue, or bond purpose the obligation to which the agreement is related. The determination of the commission included in an interest exchange agreement that such agreement relates to an obligation shall be conclusive.
18.55(6)(d)3.
3. The resolution authorizing the commission to enter into any interest exchange agreement shall require that the terms and conditions of the agreement reflect a fair market value as of the date of execution of the agreement, as reflected by the determination of the independent financial consulting firm under
subd. 1., and shall establish guidelines for any such agreement, including the following:
18.55(6)(d)3.a.
a. The conditions under which the commission may enter into the agreements.
18.55(6)(d)3.c.
c. The aspects of risk exposure associated with the agreements.
18.55(6)(d)3.d.
d. The standards and procedures for counterparty selection.
18.55(6)(d)3.e.
e. The standards for the procurement of, and the setting aside of reserves, if any, in connection with, the agreements.
18.55(6)(d)3.f.
f. The provisions, if any, for collateralization or other requirements for securing any counterparty's obligations under the agreements.
18.55(6)(d)3.g.
g. A system for financial monitoring and periodic assessment of the agreements.
18.55(6)(e)1.1. Subject to
subd. 2., the terms and conditions of an interest exchange agreement under
par. (a) shall not be structured so that, as of the trade date of the agreement, both of the following are reasonably expected to occur:
18.55(6)(e)1.a.
a. The aggregate expected debt service and net exchange payments relating to the agreement during the fiscal year in which the trade date occurs will be less than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable during that fiscal year if the agreement is not executed.
18.55(6)(e)1.b.
b. The aggregate expected debt service and net exchange payments relating to the agreement in subsequent fiscal years will be greater than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable in those fiscal years if the agreement is not executed.
