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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 724
December 6, 2023 - Introduced by Representatives ROZAR, ARMSTRONG, BEHNKE and
NOVAK, cosponsored by Senators JAMES and FEYEN. Referred to Committee on
State Affairs.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to amend 231.02 (2), 231.03 (13) and 231.08 (8); and to create 231.03
(6) (L) of the statutes; relating to: financing the operating costs and certain
out-of-state projects of nonprofit institutions and compensation of employees
of the Wisconsin Health and Educational Facilities Authority.
Analysis by the Legislative Reference Bureau
This bill makes the following changes to laws governing the Wisconsin Health
and Educational Facilities Authority, which is a public body corporate and politic
created outside of official state government:
1. Under current law, WHEFA may issue bonds to finance certain projects of
health, educational, research, and other nonprofit institutions. The bill authorizes
WHEFA to issue bonds for the purpose of financing working capital of such
institutions to cover operating costs.
2. Current law authorizes WHEFA to help finance the costs of projects located
outside of Wisconsin provided that the project includes a substantial component
located within the state. The bill instead authorizes the financing of a project outside
the state if the owner or operator of the project, or an affiliate of the owner or operator,
has a presence within the state.
3. Under current law, WHEFA appoints an executive director to administer the
authority. The executive director's compensation may not exceed the maximum of
the salary range established for state government positions assigned to executive
salary group six. This bill increases that maximum assignment to executive salary
group eight.
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4. Similarly, current law provides that all other WHEFA employees may not
receive compensation that exceeds the maximum of the salary range established for
state government positions assigned to executive salary group three. This bill
increases that maximum assignment to executive salary group five.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 231.02 (2) of the statutes is amended to read:
231.02 (2) The authority shall appoint an executive director and associate
executive director who shall not be members of the authority and who shall serve at
the pleasure of the authority. They shall receive such compensation as the authority
fixes, except that the compensation of the executive director shall not exceed the
maximum of the salary range established under s. 20.923 (1) for positions assigned
to executive salary group 6 8 and the compensation of each other employee of the
authority shall not exceed the maximum of the salary range established under s.
20.923 (1) for positions assigned to executive salary group 3 5. The executive
director or associate executive director or other person designated by resolution of
the authority shall keep a record of the proceedings of the authority and shall be
custodian of all books, documents, and papers filed with the authority, the minute
book or journal of the authority, and its official seal. The executive director or
associate executive director or other person may cause copies to be made of all
minutes and other records and documents of the authority and may give certificates
under the official seal of the authority to the effect that such copies are true copies,
and all persons dealing with the authority may rely upon such certificates.
SECTION 2. 231.03 (6) (L) of the statutes is created to read:
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SECTION 2
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231.03 (6) (L) In an amount not to exceed that approved by the authority,
finance working capital of any participating health institution, participating
educational institution, participating nonprofit institution, or participating
research institution for the purpose of covering operating expenses. Bonds issued
for purposes of this paragraph are not exempt from taxation under s. 71.05 (1) (c) 14.,
71.26 (1m) (o), or 71.45 (1t) (n).
SECTION 3. 231.03 (13) of the statutes is amended to read:
231.03 (13) Make loans to any participating health institution, participating
educational institution, participating nonprofit institution, or participating
research institution for the cost of a project or to finance working capital under sub.
(6) (L) in accordance with an agreement between the authority and the participating
health institution, participating educational institution, participating nonprofit
institution, or participating research institution. The authority may secure the loan
by a mortgage or other security arrangement on the health facility, educational
facility, nonprofit facility, or research facility granted by the participating health
institution, participating educational institution, participating nonprofit
institution, or participating research institution to the authority. The loan may not
exceed, as applicable, the total cost of the project as determined by the participating
health institution, participating educational institution, participating nonprofit
institution, or participating research institution and approved by the authority or
the amount of working capital approved by the authority under sub. (6) (L).
SECTION 4. 231.08 (8) of the statutes is amended to read:
231.08 (8) The proceeds of a bond issued under this section may be used for a
project in this state or any other state, except that if the proceeds of a bond are used
for a project located in another state, that project shall include a substantial
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SECTION 4 ASSEMBLY BILL 724
component located in this state, as determined by the executive director the owner
or operator of that project, or its affiliate, shall have a presence in this state.
(END)
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