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  Date of enactment: March 30, 2016
2015 Senate Bill 549   Date of publication*: March 31, 2016
* Section 991.11, Wisconsin Statutes: Effective date of acts. "Every act and every portion of an act enacted by the legislature over the governor's partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication."
2015 WISCONSIN ACT 316
An Act to repeal 234.905 (2) (e), 234.905 (3m) and 234.905 (4) (b); to renumber and amend 234.90 (4); to amend 234.90 (2) (b), 234.90 (3) (b), 234.90 (3) (c), 234.90 (3g) (b), 234.90 (3n) (b), 234.90 (5), 234.905 (title), 234.905 (1) (b) (intro.), 234.905 (1) (b) 1., 234.905 (1) (b) 2., 234.905 (1) (b) 3., 234.905 (1) (e), 234.905 (1) (f), 234.905 (2) (intro.), (a), (b), (c), (d), (f) and (g), 234.905 (3) (a), 234.905 (3) (b), 234.905 (3) (e), 234.905 (4) (a), 234.905 (5), 234.907 (2) (c), 234.907 (2) (cm), 234.907 (2) (f), 234.907 (3), 234.91 (2) (c), 234.91 (3) (a) (intro.), 234.91 (3) (b), 234.91 (4), 234.91 (5) (a), 234.91 (5) (b) and 234.93 (1) (d); and to create 234.90 (4) (b), 234.905 (1) (cm), 234.905 (4) (bn) and 234.91 (3) (a) 3. of the statutes; relating to: agricultural loan guarantee programs administered by the Wisconsin Housing and Economic Development Authority.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
316,1 Section 1. 234.90 (2) (b) of the statutes is amended to read:
234.90 (2) (b) In order to maximize the benefits of the program under this section, the The total outstanding principal amount guarantee of all loans to the borrower that are guaranteed under this section will not exceed an amount set annually, no later than December 1, by the authority that is not less than $2,000 nor more than $150,000. For purposes of adjusting the total outstanding principal amount of all loans to a borrower under this paragraph, the authority shall consider changes in the index of prices paid by farmers published by the federal department of agriculture $250,000.
316,2 Section 2. 234.90 (3) (b) of the statutes is amended to read:
234.90 (3) (b) The amount of the farmer's debts related to the production of the agricultural commodity that is the subject of the guaranteed loan totals at least 40% 40 percent of the amount of the farmer's assets related to the production of the agricultural commodity that is the subject of the guaranteed loan.
316,3 Section 3. 234.90 (3) (c) of the statutes is amended to read:
234.90 (3) (c) In the judgment of the participating lender, it is reasonably likely that if the farmer receives a guaranteed loan the farmer's assets, cash flow, and managerial ability are sufficient to preclude voluntary or involuntary liquidation before April 1 of the calendar year following the calendar year in which the participating lender granted the end of the loan term.
316,4 Section 4. 234.90 (3g) (b) of the statutes is amended to read:
234.90 (3g) (b) In the judgment of the participating lender, it is reasonably likely that if the farmer receives a guaranteed loan the farmer's assets, cash flow, and managerial ability are sufficient to preclude voluntary or involuntary liquidation before April 1 of the calendar year following the calendar year in which the participating lender granted the end of the loan term.
316,5 Section 5. 234.90 (3n) (b) of the statutes is amended to read:
234.90 (3n) (b) The proceeds of a guaranteed loan may be used to refinance a guaranteed loan that has been refinanced one time if at least 60% 60 percent of the principal amount of the refinanced guaranteed loan has been repaid and the total guarantee amount to the borrower under this section after the refinancing is no more than the amount permitted under sub. (2) (b).
316,6 Section 6. 234.90 (4) of the statutes is renumbered 234.90 (4) (a) and amended to read:
234.90 (4) (a) The authority shall may guarantee repayment collection of a percentage, not exceeding 90 percent, of the principal, if less than $50,000, or 80 percent of the principal, if $50,000 or more, of any agricultural production loan eligible for guarantee under sub. (2) made to a farmer eligible for a guaranteed loan under sub. (3) or (3g).
316,7 Section 7. 234.90 (4) (b) of the statutes is created to read:
234.90 (4) (b) The authority may extend a guarantee under this section beyond the original term of the guaranteed loan if the guaranteed loan is part of a loan workout agreement.
316,8 Section 8. 234.90 (5) of the statutes is amended to read:
234.90 (5) Interest reduction. If at the time of origination or extension the interest rate on a guaranteed loan and the prime lending rate as reported by the federal reserve board in federal reserve statistical release H. 15 each equals or exceeds 10% 10 percent, the authority shall may pay, from the moneys in the Wisconsin development reserve fund, to the participating lender making the loan, an amount equal to 2% that is no more than 2 percent of the principal amount of the loan.
316,9 Section 9. 234.905 (title) of the statutes is amended to read:
234.905 (title) Agricultural production drought disaster assistance loan guarantees.
316,10 Section 10. 234.905 (1) (b) (intro.) of the statutes is amended to read:
234.905 (1) (b) (intro.) "Agricultural production drought disaster assistance loan" means a loan to a farmer to finance extraordinary drought-related disaster-related costs, including the cost of any of the following:
316,11 Section 11. 234.905 (1) (b) 1. of the statutes is amended to read:
234.905 (1) (b) 1. Fertilizer, seed, fuel, pesticides, tillage services, crop insurance, or any other service or consumable good necessary to produce an agricultural commodity to replace or supplement an agricultural commodity adversely affected by drought disaster conditions.
316,12 Section 12. 234.905 (1) (b) 2. of the statutes is amended to read:
234.905 (1) (b) 2. Water delivery in connection with agricultural commodities adversely affected by drought disaster conditions.
316,13 Section 13. 234.905 (1) (b) 3. of the statutes is amended to read:
234.905 (1) (b) 3. Feed and associated expenses for animals to supplement feed supplies adversely affected by drought disaster conditions.
316,14 Section 14. 234.905 (1) (cm) of the statutes is created to read:
234.905 (1) (cm) "Disaster" means an act of nature for which the governor issues an executive order declaring a state of emergency for the state or any portion of the state under s. 323.10.
316,15 Section 15. 234.905 (1) (e) of the statutes is amended to read:
234.905 (1) (e) "Guaranteed loan" means an agricultural production drought disaster assistance loan on which the authority guarantees collection.
316,16 Section 16. 234.905 (1) (f) of the statutes is amended to read:
234.905 (1) (f) "Participating lender" means a bank, production credit association, credit union, savings bank, savings and loan association or other person who makes agricultural production drought disaster assistance loans and who has entered into an agreement with the authority under s. 234.93 (2) (a).
316,17 Section 17. 234.905 (2) (intro.), (a), (b), (c), (d), (f) and (g) of the statutes are amended to read:
234.905 (2) Eligible loans. (intro.) An agricultural production drought disaster assistance loan made by a participating lender is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 if all of the following apply:
(a) The total of the principal amounts guarantee amount of all guaranteed loans extended to the borrower that are guaranteed under this section will not exceed $15,000 $25,000.
(b) The rate of interest on the agricultural production drought disaster assistance loan, including any origination fees or other charges relating to the agricultural production drought disaster assistance loan, does not exceed a rate determined by the authority after considering the conditions of the financial market.
(c) The participating lender shall pay directly any supplier of fertilizer, seed, fuel, pesticides, tillage services, crop insurance, animal feed, water or other service or consumable good necessary to produce an agricultural commodity, if the borrower obtains the agricultural production drought disaster assistance loan to pay that supplier.
(d) The participating lender obtains security for repayment of the agricultural production drought disaster assistance loan or follows other procedures required by the authority to secure repayment of the agricultural production drought disaster assistance loan.
(f) The proceeds of the agricultural production drought disaster assistance loan may not be applied to the outstanding balance of any other loan.
(g) The proceeds of the agricultural production drought disaster assistance loan may not be used to refinance a loan made under this section.
316,18 Section 18. 234.905 (2) (e) of the statutes is repealed.
316,19 Section 19. 234.905 (3) (a) of the statutes is amended to read:
234.905 (3) (a) The farmer does not meet the participating lender's minimum standards of creditworthiness to receive an agricultural production drought disaster assistance loan in the normal course of the participating lender's business.
316,20 Section 20. 234.905 (3) (b) of the statutes is amended to read:
234.905 (3) (b) The participating lender projects the amount of the farmer's debts to be approximately 40% or more related to the agricultural production that is the subject of the loan totals at least 40 percent of the amount of the farmer's assets related to the agricultural production that is the subject of the loan.
316,21 Section 21. 234.905 (3) (e) of the statutes is amended to read:
234.905 (3) (e) The participating lender projects that the farmer will lose approximately 40% 40 percent or more of the farmer's crops agricultural commodities because of drought conditions a disaster.
316,22 Section 22. 234.905 (3m) of the statutes is repealed.
316,23 Section 23. 234.905 (4) (a) of the statutes is amended to read:
234.905 (4) (a) Except as provided in par. (b), on or before June 30, 1989, the The authority shall may guarantee collection of 90% up to 90 percent of the principal of any agricultural production drought disaster assistance loan eligible for guarantee under sub. (2) made to a farmer eligible for a guaranteed loan under sub. (3).
316,24 Section 24. 234.905 (4) (b) of the statutes is repealed.
316,25 Section 25. 234.905 (4) (bn) of the statutes is created to read:
234.905 (4) (bn) The term of the authority's loan guarantee under this section may not exceed 3 years, unless the guaranteed loan is included in a loan workout agreement.
316,26 Section 26. 234.905 (5) of the statutes is amended to read:
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