To: Winnefox Library System Board of Trustees

From: Mark W. Arend, Interim Assistant Director

Re: Bills affecting Common School Fund

Date: 5 May 2006

The Common School Fund Library Aid is a program to all Wisconsin public school districts that distributes the interest earned on loans made from the Common School Fund, one of the state trust funds set up by the Wisconsin Constitution.  As established in the constitution and statutes governing the Common School Fund, timber revenue from public lands, certain fines and forfeitures, and proceeds from unclaimed property are added to the principal of the fund.  As directed by the constitution, the beneficiaries of the CSF are the public school libraries of the state. Chapter 43.70 of Statutes states: "all monies apportioned from the Common School Fund shall be expended for the purchase of library books and other instructional materials for school libraries . .."

AB 40, which was passed into law as Act 91, increases the amount of money seized from drug-related crimes that local law enforcement can retain. Under previous law, a law enforcement agency could retain up to 50% of the proceeds from the sale of seized property to cover costs of investigation and prosecution and other costs relating to the forfeiture proceeding and sale.. All other proceeds from the sale of seized property and all cash seized had to be turned over to the Common School Fund. Under this law, a law enforcement agency that seizes cash may retain 70% of any amount below $2,000 and 50% of any amount in excess of $2,000 to cover their costs.

AB 152 would allow counties to retain 20 percent of fines and forfeitures that are collected within 120 days of being imposed and 30 percent of such fines and forfeitures that are collected after 120 days of being imposed (as opposed to the 10 percent allowed under current law). It was passed by the Legislature but was vetoed by the Governor. As of this writing the Legislature has not attempted to override the veto.

AB 596, which was passed into law as Act 305, requires each entity on whose behalf forfeitures, assessments, and surcharges are collected to share the cost of collection in proportion to the entity’s entitlement to the amount collected. 

Municipal courts collect forfeitures and certain assessments and surcharges for violations of city, village, and town ordinances and disburses them to the appropriate municipal entities and, in some instances, to the counties and to the state. It is anticipated that fewer funds will be directed to the Common School Fund.

SB 424 would make various changes to abandoned and unclaimed property and could consequently affect contributions to the Common School Fund, has been referred to Senate committee.