Waiving certain federal bond limitations allocated to cities and counties and requiring the Department of Commerce to develop a system for reallocating the bond limitations to other state and local units of government

This bill waives the allocation to local units in this state and requires the Department of Commerce (DOC) to develop a system to reallocate the allocation. The bill prohibits DOC from reallocating an allocation of the limitation related to bonds that have already been sold by, or that are subject to a sale by, a city or county. The bill also permits DOC to revise a reallocation made under the bill, but prohibits the revision of any reallocation under which the recipient of a reallocation has adopted a resolution authorizing the issuance of a bond. Under the bill other units of government, including a city, village, town, county; a special purpose district; a state authority, such as the Wisconsin Housing and Economic Development Authority, the Wisconsin Health and Educational Facilities Authority, or the University of Wisconsin Hospitals and Clinics Authority; or a local housing, redevelopment, or community development authority, may apply to issue bonds under the reallocation of the federal bond limitation as established by DOC.

Under current law, a city, village, or town may issue industrial revenue bonds for certain specified projects. The bill adds to the definition of "project" facilities constructed using the proceeds from a recovery zone facilities bond or from a Midwestern disaster area bond (tax-exempt bonds authorized under the federal Heartland Disaster Tax Relief Act of 2008).

Under current law, the state, regional planning commissions, federally recognized Indian tribes and bands, and local units of government, including municipalities, counties, school districts, and other special purpose districts, may enter into intergovernmental cooperation agreements for the receipt or furnishing of services or joint exercise of powers. This bill adds a housing authority, a redevelopment authority, and a community development authority to the list of entities that may enter into such agreements.