SB 440

Current federal law, the American Recovery and Reinvestment Act of 2009,

authorizes certain local governments to issue several different types of tax-exempt

bonds, including recovery zone facility bonds (bonds). The amount of bonds that may

be issued is limited. Federal law allocates to counties and to cities with a population

of at least 100,000 (local units) the limited amount of bonds that may be issued.

Federal law also authorizes local units to waive their allocation, in which case

the state in which the local units are located may reallocate the allocation to other

units of government in that state.

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.