AB 857

This bill eliminates the authority of the Board of Commissioners of Public

Lands (BCPL) to make state trust fund loans, broadens the authority of the BCPL

to delegate its authority to invest state trust fund moneys, and removes certain

restrictions on the use of common school fund income moneys.

Under current law, BCPL manages the common school fund, the normal school

fund, the university fund, and the agricultural college fund (trust funds). BCPL also

administers a state trust fund loan program under which it makes loans from

moneys belonging to the trust funds to school districts, local governments, and

certain other public entities for certain public purposes. This bill eliminates the

authorization of BCPL to make these loans.

Under current law, BCPL may delegate authority to the State of Wisconsin

Investment Board (SWIB) to invest the moneys belonging to the trust funds, but

SWIB may invest the moneys only in fixed income investments or funds that invest

only in fixed income instruments.

Under this bill, SWIB must invest BCPL delegated moneys in the manner

SWIB invests the moneys belonging to the other funds SWIB manages.

Also under current law, income from the common school fund is distributed to

the school districts of the state and must be expended only for the purchase of

instructional materials from the State Historical Society for use in teaching

Wisconsin history, for the purchase of library books and other instructional materials

for school libraries, and, under certain conditions, for the purchase of school library

computers and related software. This bill removes these limitation regarding a

school district's expenditure of common school fund income moneys.