Adm 35.02 (3m) “Financial assistance agreement” means an agreement entered into by the department pursuant to s. 281.59 (11) (a), Stats., including an amendment to a financial assistance agreement. Section 6. Adm 35.02 (4) and (5) are amended to read:
Adm 35.02 (4) “Market interest rate” means interest at the effective rate, as determined by the department, for revenue obligations issued by the state to fund a project loan or a portion of a project loan. has the meaning given in s. 281.59 (1) (b), Stats. Adm 35.02 (5) “Municipality” has the meaning set forth given in s. 281.59 (1) (c), Stats. Section 7. Adm 35.02 (6) is repealed.
Section 8. Adm 35.02 (7) is repealed and recreated to read:
Adm 35.02 (7) “Obligation" means financial assistance that the recipient must repay. Obligations include a recipient’s debts guaranteed or insured by the environmental improvement fund that the recipient must repay to another lender.
Section 9. Adm 35.03 (title) is amended to read:
Adm 35.03 (title) Certification. Conditions of financial assistance.
Section 10. Adm 35.03 (1), (2) (intro.), and (2) (a) to (i) are repealed.
Section 11. Adm 35.03 (3) (a) and (b) are amended to read:
Adm 35.03 (3) (a) The department may not issue a certification enter into a financial assistance agreement unless the municipality recipient demonstrates to the satisfaction of the department that the municipality recipient has the financial capacity to assure sufficient dedicated sources of revenue to operate and maintain the project system for its useful life as long as an obligation is outstanding for the project and to pay the debt service, including funding and maintaining any debt service reserve, on its project loan obligation. The department may consider the effect of proposed financial hardship assistance or assistance provided by another entity in making a determination of financial capacity.
(b) The department may shall require an opinion of counsel or bond counsel, acceptable to the department, to the effect that the obligation of the municipality recipient to repay the project loan is valid and enforceable and that interest on the project loan is excluded from gross income for federal income tax purposes.
Section 12. Adm 35.03 (3) (c) is created to read:
Adm 35.03 (3) (c) The department may require the opinion of counsel or bond counsel under par. (b) to include a statement that interest on the obligation is excluded from gross income for federal income tax purposes.
Section 13. Adm 35.03 (4) (a) and (b) are amended to read:
Adm 35.03 (4) (a) The department may not issue a certification enter into a financial assistance agreement unless the municipality recipient establishes one or more dedicated sources of revenue that the department deems sufficient for repayment of the project loan obligation.
(b) In this subsection, “dedicated source of revenue" includes any The dedicated source of revenue pledged to repayment of the obligation shall include one or more of the following:
Section 14. Adm 35.03 (4) (b) 4. is created to read:
Adm 35.03 (4) (b) 4. Any other dedicated source of revenue that the department deems satisfactory.
Section 15. Adm 35.04 (1) is repealed.
Section 16. Adm 35.04 (2) is repealed and recreated to read:
Adm 35.04 (2) A recipient may not pay the principal of an obligation prior to the payment schedule specified in the financial assistance agreement, except in accordance with the financial assistance agreement and the obligation.
Section 17. Adm 35.04 (3) is amended to read:
Adm 35.04 (3) In administration of its powers and duties under s. 281.59 (11) (b), Stats., the department shall deduct, as a first charge against state payments due the municipality, any amounts due to the clean water environmental improvement fund. Section 18. Adm 35.05 (title) is amended to read:
Adm 35.05 (title) Disbursement of project loan proceeds financial assistance.
Section 19. Adm 35.05 (1) is amended to read:
Adm 35.05 (1) Except as provided in this section, The department may disburse the proceeds of a project loan shall be distributed by the department financial assistance to the municipality recipient upon presentation of a request for disbursement from the municipality and written certification receiving a determination from the department of natural resources that the municipality financial assistance requested by the recipient is in compliance with all applicable requirements of ch. eligible for disbursement under chs. NR 162 or 166 and the financial assistance agreement. The form and procedure of the request shall be specified in the financial assistance agreement. Section 20. Adm 35.05 (2) is repealed and recreated to read:
Adm 35.05 (2) The department may only disburse financial assistance in accordance with a financial assistance agreement.
Section 21. Adm 35.05 (3) is repealed.
Section 22. Adm 35.06 (intro.) is amended to read:
Adm 35.06 (intro.) Interest rates. The department shall establish the market rate used to calculate the applicable rate under s. NR 162.07 (4) for each project loan, taking into account the following factors: Section 23. Adm 35.06 (1) is renumbered Adm 35.06 (1) (intro.) and amended to read:
Adm 35.06 (1) (intro.) The department shall establish periodically review, and may periodically change, the market interest rate used to calculate the applicable rate under s. NR 162.07 (4) for each project loan, taking into account the following factors: . (1) The market interest rate used to calculate the rate for a particular project loan or portion of a project loan shall be at the effective interest rate of the funds, as determined by the department, that are used to fund all or a portion of each project loan. When a current market rate cannot be determined from an actual bond sale, the department may estimate such market rate based on market comparables and market indices. set by the department under this section shall be the market interest rate for the purpose of ss. 281.58(12) and 281.61(11), Stats. The department may consider any of the following factors when establishing or changing the market interest rate: Section 24. Adm 35.06 (1) (a) to (e) are created to read:
Adm 35.06 (1) (a) Municipal bond market indexes
(b) Comparable bond market transactions.
(c) Expectations for bond market changes to the next planned periodic market interest rate review.
(d) Effective interest rates for environmental improvement fund revenue obligations issued under s. 281.59(4), Stats. (e) Efficient administration of the environmental improvement fund.
Section 25. Adm 35.06 (2) is repealed and recreated to read:
Adm 35.06 (2) The department may review and change the market interest rate at any time as necessary to aid the purposes of ss. 281.58, 281.59, and 281.61. Section 26. Adm 35.06 (3) is repealed.
Section 27. Adm 35.06 (3) (intro.) and (3) (a) and (b) are created to read:
