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LRB-4425/1
EVM:ahe
2017 - 2018 LEGISLATURE
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 1An Act to repeal 24.61 (3), 24.61 (4), 24.61 (4m), 24.63 (1), 24.63 (2), 24.63 (2m),
224.63 (2r), 24.63 (2s), 24.66 (1) to (4), 24.66 (5) (b), 24.67 (1), 24.67 (2) and 60.24
3(3) (d); to renumber and amend 24.66 (5) (a) and 24.67 (3); and to amend
420.255 (2) (s) (title), 24.60 (1) (c), 24.60 (1) (d), 24.60 (4), 24.61 (1), 24.61 (2) (c),
524.61 (5), 24.61 (7), 24.62 (1), 24.63 (title), 24.66 (6), 43.70 (3), 116.03 (13s),
6200.27 (2) (a) 1., 229.825 (2) (ae), 229.827 (3), 229.829 (4) (c) and 281.43 (4) (d)
7of the statutes; relating to: the authority of the Board of Commissioners of
8Public Lands to make trust fund loans and delegate authority to invest trust
9fund moneys, the use of common school fund income moneys, and making an
10appropriation.
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 1Section 1. 20.255 (2) (s) (title) of the statutes is amended to read:
AB857,2,22 20.255 (2) (s) (title) School library aids.
AB857,2 3Section 2. 24.60 (1) (c) of the statutes is amended to read:
AB857,2,54 24.60 (1) (c) A county, if the county acts on behalf of a county library board that
5has adopted a resolution under s. 24.66 (3m), 2015 stats.
AB857,3 6Section 3. 24.60 (1) (d) of the statutes is amended to read:
AB857,2,97 24.60 (1) (d) A city, village or town, if the city, village or town acts on behalf of
8a municipal library board that has adopted a resolution under s. 24.66 (3m), 2015
9stats
.
AB857,4 10Section 4. 24.60 (4) of the statutes is amended to read:
AB857,2,1211 24.60 (4) “State trust fund loan" means a loan authorized under s. 24.61 (3),
122015 stats
.
AB857,5
1Section 5. 24.61 (1) of the statutes is amended to read:
AB857,3,62 24.61 (1) Investments and loans; separate accounts. The board shall loan or
3invest moneys and for an application received before the effective date of this
4subsection .... [LRB inserts date], may loan moneys
belonging to the trust funds as
5those moneys accumulate in the treasury. The board shall keep a separate account
6of all investments and loans from each fund.
AB857,6 7Section 6. 24.61 (2) (c) of the statutes is amended to read:
AB857,3,138 24.61 (2) (c) Delegation of investment authority to investment board. The board
9may delegate to the investment board the authority to invest part or all of the moneys
10belonging to the trust funds. If the board delegates the authority, the investment
11board may shall invest the moneys belonging to the trust funds in any fixed income
12investment or fund that invests only in fixed income instruments manner authorized
13for the investment of any funds specified under s. 25.17
.
AB857,7 14Section 7. 24.61 (3) of the statutes is repealed.
AB857,8 15Section 8. 24.61 (4) of the statutes is repealed.
AB857,9 16Section 9. 24.61 (4m) of the statutes is repealed.
AB857,10 17Section 10. 24.61 (5) of the statutes is amended to read:
AB857,4,818 24.61 (5) Loans to consortia or cities, villages or towns served by joint
19library boards.
Whenever The procedure for repayment of a state trust fund loan
20made to
a consortium applies for a loan under sub. (3), or whenever a group of cities,
21villages, or towns served by a joint county or municipal library board applies for a
22loan and obtained for an educational technology or distance education project, the
23board shall treat the application as a loan to each of the members of the consortium
24or each city, village or town served by a county or municipal library board in an
25amount equal to the total amount of the loan divided equally by the number of

1members of the consortium or the number of cities, villages and towns served by the
2library board, unless all members of the consortium or all cities, villages and towns
3served by a joint library board agree to a different arrangement specified by the
4members or cities, villages and towns on their applications. The procedure for
5application, approval and
repayment of the loan by each member of a consortium or
6group under this subsection
shall be the same as provided in this subchapter for
7application, approval and repayment of a loan to that member individually, except
8that the loan shall not be made unless all members qualify
.
AB857,11 9Section 11. 24.61 (7) of the statutes is amended to read:
AB857,5,210 24.61 (7) Loans to cooperative educational service agencies. Whenever a
11cooperative educational service agency applies for a loan under sub. (3), the board
12shall treat the application as a loan to each of the school districts on behalf of which
13the loan is sought in an amount equal to the total amount of the loan divided equally
14by the number of school districts, unless the cooperative educational service agency
15specifies on its application a different arrangement that has been agreed to by all
16school districts for which the loan is sought. The board shall not make the loan unless
17each school district for which the loan is sought qualifies for a loan in the amount
18specified in this subsection, or a different amount if that amount is specified on the
19application.
If the a cooperative educational service agency fails to make a timely
20repayment of the principal or payment of the interest on the a state trust fund loan,
21each school district for which the loan is made is liable to repay the principal and pay
22the interest in the amount determined under this subsection an amount equal to the
23total amount of the loan divided equally by the number of school districts for which
24the loan is made, unless the agency has specified on its loan application a different

1arrangement that has been agreed to by all school districts for which the loan is
2sought
.
AB857,12 3Section 12. 24.62 (1) of the statutes is amended to read:
AB857,5,74 24.62 (1) Except as authorized in sub. (2), the board shall deduct its expenses
5incurred in administering investments and state trust fund loans under s. 24.61 from
6the gross receipts of the fund to which the interest and income of the investment or
7loan will be added.
AB857,13 8Section 13. 24.63 (title) of the statutes is amended to read:
AB857,5,9 924.63 (title) Term, amount, Repayment and interest rate.
AB857,14 10Section 14. 24.63 (1) of the statutes is repealed.
AB857,15 11Section 15. 24.63 (2) of the statutes is repealed.
AB857,16 12Section 16. 24.63 (2m) of the statutes is repealed.
AB857,17 13Section 17. 24.63 (2r) of the statutes is repealed.
AB857,18 14Section 18. 24.63 (2s) of the statutes is repealed.
AB857,19 15Section 19. 24.66 (1) to (4) of the statutes are repealed.
AB857,20 16Section 20. 24.66 (5) (a) of the statutes is renumbered 24.66 (5) and amended
17to read:
AB857,6,1318 24.66 (5) Irrepealable tax levy. Every application for a general obligation
19trust fund loan under this section by a municipality shall be accompanied by a
20certified copy under the hand of the proper clerk of a recorded resolution adopted by
21the municipality applying for or approving the loan, levying, except as provided in
22par. (b), upon all the taxable property of the municipality a direct annual tax for the
23purpose of paying and sufficient to pay the principal and interest on the proposed
24loan as they become due. In a 1st class city school district, the application shall be
25accompanied by a certified copy of a resolution, adopted by the board of school

1directors, stating that it is the intention of the board of school directors to include in
2its budget transmitted to the common council under s. 119.16 (8) (b) a written notice
3specifying the amount of money necessary to pay the principal and interest on the
4loan as they become due. Every application for a general obligation trust fund loan
5under this subsection by a cooperative educational service agency shall be
6accompanied by a copy of a recorded resolution adopted by the school board of each
7school district for which the loan is sought, certified by the school district clerk of that
8school district, levying upon all taxable property of the school district a direct annual
9tax for the purpose of paying and sufficient to pay the school district's share of the
10principal and interest on the proposed loan as they become due. Th
e A levy imposed
11by the municipality shall be void if the board declines to make the loan; otherwise
12it
under s. 24.66 (5) (a), 2015 stats., shall remain valid and irrepealable until the loan
13and all interest on the loan are fully paid.
AB857,21 14Section 21. 24.66 (5) (b) of the statutes is repealed.
AB857,22 15Section 22. 24.66 (6) of the statutes is amended to read:
AB857,6,1916 24.66 (6) Proceedings to be recorded and become conclusive evidence. The
17application, statement, and all accompanying exhibits and documents of a state trust
18fund loan
shall be recorded in the office of the board and, together with the record,
19is conclusive evidence of the facts stated.
AB857,23 20Section 23. 24.67 (1) of the statutes is repealed.
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