| 1 | 1 | | 2025 - 2026 LEGISLATURE |
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| 2 | 2 | | LRB-0670/1 |
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| 3 | 3 | | ZDW:emw |
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| 4 | 4 | | 2025 SENATE BILL 56 |
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| 5 | 5 | | February 21, 2025 - Introduced by Senators QUINN and TOMCZYK, cosponsored by |
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| 6 | 6 | | Representatives GREEN, ARMSTRONG, BEHNKE, MURSAU, O'CONNOR, TUCKER |
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| 7 | 7 | | and TUSLER. Referred to Committee on Utilities and Tourism. |
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| 8 | 8 | | AN ACT to amend 281.61 (2r) (e) of the statutes; relating to: the use of federal |
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| 9 | 9 | | capitalization grant funds for lead service line replacement. |
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| 10 | 10 | | Analysis by the Legislative Reference Bureau |
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| 11 | 11 | | Under current law, the Department of Administration and the Department of |
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| 12 | 12 | | Natural Resources administer the safe drinking water loan program (SDWLP), |
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| 13 | 13 | | which provides financial assistance from the environmental improvement program |
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| 14 | 14 | | to local governmental units and to the private owners of community water systems |
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| 15 | 15 | | that serve local governmental units for projects for the planning, designing, |
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| 16 | 16 | | construction, or modification of public water systems. DNR establishes a funding |
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| 17 | 17 | | list for SDWLP projects, and DOA allocates funding for those projects. |
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| 18 | 18 | | Current law specifies several allowable methods of providing financial |
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| 19 | 19 | | assistance under the SDWLP, one of which is using funds received as federal |
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| 20 | 20 | | capitalization grants. There is, however, a prohibition on using those funds to |
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| 21 | 21 | | provide principal forgiveness to a private owner of a community water system. This |
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| 22 | 22 | | bill provides that this prohibition does not apply to the use of federal capitalization |
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| 23 | 23 | | grants for forgiveness of loans for the replacement of lead service lines. |
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| 24 | 24 | | For further information see the state and local fiscal estimate, which will be |
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| 25 | 25 | | printed as an appendix to this bill. |
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| 26 | 26 | | The people of the state of Wisconsin, represented in senate and assembly, do |
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| 27 | 27 | | enact as follows: |
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| 28 | 28 | | 1 |
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| 29 | 29 | | 2 2025 - 2026 Legislature |
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| 30 | 30 | | SENATE BILL 56 |
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| 31 | 31 | | - 2 - LRB-0670/1 |
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| 32 | 32 | | ZDW:emw |
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| 33 | 33 | | SECTION 1 |
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| 34 | 34 | | SECTION 1. 281.61 (2r) (e) of the statutes is amended to read: |
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| 35 | 35 | | 281.61 (2r) (e) Using funds received as federal capitalization grants under 42 |
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| 36 | 36 | | USC 300j-12, any other method that is consistent with the federal program for safe |
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| 37 | 37 | | drinking water state loan funds under 42 USC 300j-12 or any other federal law |
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| 38 | 38 | | providing funding for or otherwise relating to that program, except that funds |
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| 39 | 39 | | received as federal capitalization grants may not be used to provide principal |
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| 40 | 40 | | forgiveness, other than forgiveness of loans for the replacement of lead service lines, |
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| 41 | 41 | | to a private owner of a community water system. |
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| 42 | 42 | | (END) |
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