AB 508

Under current law, the Wisconsin Health and Educational Facilities Authority

(WHEFA) may issue bonds to finance certain projects of health, educational, or

research institutions; to refinance outstanding debt of health, educational, or

research institutions; and to finance a purchase of the state's right to receive any of

the payments under the Attorneys General Master Tobacco Settlement Agreement

of November 23, 1998. Projects of health, educational, or research institutions that

may be financed include, among others, the acquisition of a hospital, the construction

or operation of an ambulatory surgery center or home health agency, and the

construction, remodeling, furnishing, or equipping of a health, educational, or

research facility or related structure.

This bill authorizes WHEFA to issue bonds to finance any project undertaken

by a nonprofit institution for a nonprofit facility, or to refinance outstanding debt of

a nonprofit institution. A nonprofit institution is defined in the bill as a nonprofit

entity that is not a health, education, or research institution. A nonprofit facility is

defined in the bill as a facility that is owned or operated by a nonprofit entity. Project

activities for which WHEFA may issue bonds for a nonprofit institution include

construction, acquisition, remodeling, furnishing, and equipping of nonprofit

facilities, related structures, and structures or items that are useful for the operation

of nonprofit facilities.

This bill also makes the following changes to WHEFA's bonding authority:

1. Extends the maximum bond maturity date for bonds issued by WHEFA from

30 years from the date of issue to 50 years from the date of issue.

2. Eliminates the requirement the certain refinancing projects for health

institutions be certified by the Department of Health Services.

3. Changes the working capital limits that must be included in the cost of a

project to be consistent with federal law.

4. Eliminates references to WHEFA's authority to issue bonds to participating

child care providers which expired on May 1, 2000.