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. 18.73(5)(5) Agreements and arrangements; delegation; use of operating notes. 18.73(5)(a)(a) Subject to pars. (d) and (e), at the time of, or in anticipation of, contracting operating notes and at any time thereafter while the operating notes are outstanding, the commission may enter into agreements and ancillary arrangements relating to the operating notes, including liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. Any payment received pursuant to any such agreements or ancillary arrangements shall be deposited in, and any payments made pursuant to any such agreements or ancillary arrangements will be made from, the general fund or the operating note redemption fund, as determined by the commission. The determination of the commission included in an interest exchange agreement that such an agreement relates to an operating note shall be conclusive. 18.73(5)(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). 18.73(5)(c)(c) Any operating notes may include operating notes contracted to fund interest, accrued or to accrue, on the operating notes. 18.73(5)(d)(d) With respect to any interest exchange agreement or agreements specified in par. (a), all of the following shall apply: 18.73(5)(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. 18.73(5)(d)2.2. The interest exchange agreement must identify the note to which the agreement is related. The determination of the commission included in an interest exchange agreement that such agreement relates to a note shall be conclusive. 18.73(5)(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: 18.73(5)(d)3.a.a. The conditions under which the commission may enter into the agreements. 18.73(5)(d)3.c.c. The aspects of risk exposure associated with the agreements. 18.73(5)(d)3.e.e. The standards for the procurement of, and the setting aside of reserves, if any, in connection with, the agreements. 18.73(5)(d)3.f.f. The provisions, if any, for collateralization or other requirements for securing any counterparty’s obligations under the agreements. 18.73(5)(d)3.g.g. A system for financial monitoring and periodic assessment of the agreements. 18.73(5)(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, 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. 18.73(5)(e)2.2. Subdivision 1. shall not apply if either of the follow occurs: 18.73(5)(e)2.a.a. The commission receives a determination by the independent financial consulting firm under par. (d) 1. that the terms and conditions of the agreement reflect payments by the state that represent on-market rates as of the trade date for the particular type of agreement. 18.73(5)(e)2.b.b. The commission provides written notice to the joint committee on finance of its intention to enter into an agreement that is reasonably expected to satisfy subd. 1., and the joint committee on finance either approves or disapproves, in writing, the commission’s entering into the agreement within 14 days of receiving the written notice from the commission. 18.73(5)(e)3.3. This paragraph shall not limit the liability of the state under an agreement if actual contracted net exchange payments in any fiscal year are less than or exceed original expectations. 18.73(5)(f)(f) Semiannually, during any year in which the state is a party to an agreement entered into pursuant to par. (a), the department of administration shall submit a report to the commission and to the cochairpersons of the joint committee on finance listing all such agreements. The report shall include all of the following: 18.73(5)(f)1.1. A description of each agreement, including a summary of its terms and conditions, rates, maturity, and the estimated market value of each agreement. 18.73(5)(f)2.2. An accounting of amounts that were required to be paid and received on each agreement. 18.73(5)(f)3.3. Any credit enhancement, liquidity facility, or reserves, including an accounting of the costs and expenses incurred by the state. 18.73(5)(f)4.4. A description of the counterparty to each agreement. 18.73(5)(f)5.5. A description of the counterparty risk, the termination risk, and other risks associated with each agreement. 18.7418.74 Application of operating note proceeds. All moneys resulting from the contracting of operating notes or any payment to be received under an agreement or ancillary arrangement entered into under s. 18.73 (5) with respect to any such 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 HistoryHistory: 1983 a. 3; 2007 a. 20. 18.7518.75 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, and for the payment due, if any, under an agreement or ancillary arrangement entered into under s. 18.73 (5) with respect to 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, and for the payment due, if any, under an agreement or ancillary arrangement entered into pursuant to s. 18.73 (5) with respect to 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. 18.7618.76 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 percent per year from the date the payment was judged to have been due until the date of payment of the judgment. 18.76 HistoryHistory: 1983 a. 3; 1983 a. 228 s. 16. 18.7718.77 Minority financial advisers and investment firms; disabled veteran-owned financial advisers and investment firms. 18.77(1)(a)(a) “Disabled veteran-owned financial adviser” means a financial adviser certified by the department of administration under s. 16.283 (3). 18.77(1)(b)(b) “Disabled veteran-owned investment firm” means an investment firm certified by the department of administration under s. 16.283 (3). 18.77(1)(c)(c) “Minority financial adviser” means a financial adviser certified by the department of administration under s. 16.287 (2). 18.77(1)(d)(d) “Minority investment firm” means an investment firm certified by the department of administration under s. 16.287 (2). 18.77(2)(a)(a) Except as provided under sub. (7), in contracting operating notes by competitive sale, the commission shall ensure that at least 6 percent of total operating note indebtedness contracted in each fiscal year is underwritten by minority investment firms. 18.77(2)(b)(b) Except as provided under sub. (7), in contracting operating notes by competitive sale, the commission shall make efforts to ensure that at least 1 percent of total operating note indebtedness contracted in each fiscal year is underwritten by disabled veteran-owned investment firms. 18.77(3)(a)(a) Except as provided under sub. (7), in contracting operating notes by negotiated sale, the commission shall ensure that at least 6 percent of total operating note indebtedness contracted in each fiscal year is underwritten by minority investment firms. 18.77(3)(b)(b) Except as provided under sub. (7), in contracting operating notes by negotiated sale, the commission shall make efforts to ensure that at least 1 percent of total operating note indebtedness contracted in each fiscal year is underwritten by disabled veteran-owned investment firms. 18.77(4)(a)(a) Except as provided under sub. (7), in contracting operating notes by competitive sale or negotiated sale, the commission shall ensure that at least 6 percent 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(4)(b)(b) Except as provided under sub. (7), in contracting operating notes by competitive sale or negotiated sale, the commission shall make efforts to ensure that at least 1 percent of the total moneys expended in such fiscal year for the services of financial advisers are expended for the services of disabled veteran-owned financial advisers. 18.77(5)(a)(a) 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(5)(b)(b) Except as provided under sub. (7), an individual underwriter or syndicate of underwriters shall make efforts to ensure that each bid or proposal, submitted by that individual or syndicate in a competitive or negotiated sale of an operating note, provides for at least 1 percent of sales to disabled veteran-owned 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 and disabled veteran-owned 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
18.8118.81 Definitions. In this subchapter: 18.81(1)(1) “Commission” means the building commission. 18.81(2)(2) “Eligible educational institution” means a regionally accredited, nonprofit, postsecondary educational institution. 18.81(3)(3) “Higher education bond” means obligations designated by the commission under s. 18.82. 18.81 HistoryHistory: 1989 a. 46. 18.8218.82 Bond designation. The commission may designate any obligation authorized and issued under subch. I or II as a higher education bond. 18.82 HistoryHistory: 1989 a. 46. 18.82218.822 Debt requirements. The authorizing resolution for an obligation under this subchapter shall require that all of the following conditions be met: 18.822(1)(1) The terms of the obligation are structured to encourage ownership by as many individuals as possible. 18.822(2)(2) The evidences of the obligation are issued in denominations of not more than $1,000. 18.822 HistoryHistory: 1989 a. 46. 18.8318.83 Redemption. The commission may provide that higher education bonds may be presented for payment before maturity to any eligible educational institution for tuition, fees and other educationally related costs owed that eligible educational institution plus an allowance for other educationally related costs such as room and board, books and supplies and other miscellaneous expenses owed to any person except that eligible educational institution, subject to any requirement of the commission. The commission may treat higher education bonds presented for payment under this section as still outstanding, even though owned by the state, and the commission may resell such higher education bonds or fund or refund such higher education bonds through the issuance of other obligations. If obligations are issued to fund or refund such higher education bonds, such obligations shall be treated as issued for the purpose of funding, not refunding, for all purposes under this chapter and ch. 20. 18.83 HistoryHistory: 1989 a. 46. 18.8418.84 Schools as bond trustees or fiscal agents; contracts. Notwithstanding s. 18.10 (8), the commission may designate any eligible educational institution as a trustee or fiscal agent for any issue of higher education bonds and may enter into any contract with any eligible educational institution to satisfy the purposes of this subchapter. 18.84 HistoryHistory: 1989 a. 46. 18.8518.85 Facilities. The commission may enter into agreements and ancillary arrangements for public debt under this subchapter, including liquidity facilities, remarketing or dealer agreements, letter of credit agreements and line of credit agreements. 18.85 HistoryHistory: 1989 a. 46. 18.852(1)(1) The commission may establish any procedure necessary to administer this subchapter. 18.852(2)(2) The sale of any bond, authorized and issued under subch. I and designated by the commission under s. 18.82 as a higher education bond, shall be private. 18.852 HistoryHistory: 1989 a. 46, 68, 359.
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