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SB444,43 20Section 43 . Chapter 239 of the statutes is created to read:
SB444,25,2121 Chapter 239
SB444,25,23 22Wisconsin Student Loan
23 REFINANCING Authority
SB444,25,24 24239.01 Definitions. In this chapter:
SB444,25,25 25(1) “Authority" means the Wisconsin Student Loan Refinancing Authority.
SB444,26,1
1(2) “Board" means the governing board of the authority.
SB444,26,2 2(3) “Qualified education loan" has the meaning given in 26 USC 221 (d).
SB444,26,6 3239.02 Creation and organization of authority. (1) (a) There is created an
4authority, which is a public body corporate and politic, to be known as the “Wisconsin
5Student Loan Refinancing Authority." The members of the board shall consist of all
6of the following:
SB444,26,77 1. One member of the majority party in each house of the legislature.
SB444,26,88 2. One member of the minority party in each house of the legislature.
SB444,26,119 3. One undergraduate student enrolled at least half-time and in good academic
10standing at an institution within the University of Wisconsin System who is at least
1118 years old and a resident of this state.
SB444,26,1312 4. One student enrolled at least half-time and in good academic standing at a
13technical college who is at least 18 years old and a resident of this state.
SB444,26,1614 5. One undergraduate student enrolled at least half-time and in good academic
15standing at a private, nonprofit institution of higher education located in this state
16who is at least 18 years old and a resident of this state.
SB444,26,2217 6. Two members who have at least 10 years experience in making qualified
18education loans or loan refinancing, but any person having a financial interest in or
19whose employer is primarily engaged in the business of making qualified education
20loans is not eligible for appointment under this subdivision, and any member
21appointed under this subdivision who acquires such an interest while serving as a
22member shall resign from the board.
SB444,26,2423 (b) 1. The members specified in par. (a) 1. and 2. shall be appointed as are the
24members of standing committees in their respective houses.
SB444,27,2
12. The members specified in par. (a) 3. to 5. shall be nominated by the governor,
2and with the advice and consent of the senate appointed, for 2-year terms.
SB444,27,43 3. The members specified in par. (a) 6. shall be nominated by the governor, and
4with the advice and consent of the senate appointed, for 3-year terms.
SB444,27,10 5(2) If a student member of the board appointed under sub. (1) (a) 3. to 5. loses
6his or her student status upon which the appointment was based, he or she ceases
7to be a member of the board upon the appointment of a qualified successor to the
8board. A student member who loses his or her student status solely because he or
9she graduates from an institution of higher education may complete his or her
10current term on the board.
SB444,27,16 11(3) The members of the board shall annually elect a chairperson and may elect
12other officers as they consider appropriate. A majority of the members of the board
13constitutes a quorum for the purpose of conducting its business and exercising its
14powers and for all other purposes, notwithstanding the existence of any vacancies.
15Action may be taken by the board upon a vote of a majority of the voting members
16present.
SB444,27,19 17(4) A member of the board may not be compensated for his or her services but
18shall be reimbursed for actual and necessary expenses, including travel expenses,
19incurred in the performance of his or her duties.
SB444,27,23 20(5) No cause of action of any nature may arise against and no civil liability may
21be imposed upon a member of the board for any act or omission in the performance
22of his or her powers and duties under this chapter, unless the person asserting
23liability proves that the act or omission constitutes willful misconduct.
SB444,28,9 24(6) The board shall appoint a chief executive officer who shall not be a member
25of the board and who shall serve at the pleasure of the board. The chief executive

1officer shall receive such compensation as the board fixes. The chief executive officer
2or other person designated by resolution of the board shall keep a record of the
3proceedings of the authority and shall be custodian of all books, documents, and
4papers filed with the authority, the minute book or journal of the authority, and its
5official seal. The chief executive officer or other person may cause copies to be made
6of all minutes and other records and documents of the authority and may give
7certificates under the official seal of the authority to the effect that such copies are
8true copies, and all persons dealing with the authority may rely upon such
9certificates.
SB444,28,12 10239.03 Powers of board. The board shall have all the powers necessary or
11convenient to carry out the purposes and provisions of this chapter. In addition to
12all other powers granted the board under this chapter, the board may specifically:
SB444,28,14 13(1) Adopt, amend, and repeal any bylaws, policies, and procedures for the
14regulation of its affairs and the conduct of its business.
SB444,28,15 15(2) Have a seal and alter the seal at pleasure.
SB444,28,16 16(3) Maintain an office.
SB444,28,17 17(4) Sue and be sued.
SB444,28,19 18(5) Accept gifts, grants, loans, or other contributions from private or public
19sources.
SB444,28,21 20(6) Establish the authority's annual budget and monitor the fiscal
21management of the authority.
SB444,28,23 22(7) Execute contracts and other instruments required for the operation of the
23authority.
SB444,28,25 24(8) Employ any officers, agents, and employees that it may require and
25determine their qualifications, duties, and compensation.
SB444,29,1
1(9) Issue notes, bonds, and any other obligations.
SB444,29,2 2(10) Make loans and provide grants.
SB444,29,3 3(11) Incur debt.
SB444,29,4 4(12) Procure liability insurance.
SB444,29,7 5239.04 Duties of board. The board shall develop and implement a program
6under which state residents may refinance qualified education loans. The board
7shall develop the program to include all of the following:
SB444,29,9 8(1) The authority shall provide a loan to an eligible individual to pay all or part
9of the individual's qualified education loans.
SB444,29,11 10(2) The authority may only issue loans under the program that satisfy the
11exception to discharge under 11 USC 523 (a) (8).
SB444,29,13 12(3) The authority shall establish eligibility criteria to participate in the
13program.
SB444,29,16 14(4) The board shall set the interest rate on loans made under the program to
15be as low as possible but still sufficient to fully pay all expenses of the program and
16to provide necessary reserves, as determined by the board.
SB444,29,18 17(5) The authority shall establish policies governing the ability of borrowers to
18defer loan payments or to enter into forbearances.
SB444,29,21 19239.05 Issuance of bonds. (1) The authority may issue bonds for any
20corporate purpose. All bonds are negotiable for all purposes, notwithstanding their
21payment from a limited source.
SB444,29,25 22(2) Except as otherwise expressly provided by the authority, every issue of its
23notes or bonds shall be general obligations of the authority payable out of any
24revenues or moneys of the authority, subject only to any agreements with the holders
25of particular notes or bonds pledging any particular receipts or revenues.
SB444,30,2
1(3) All bonds issued by the authority are negotiable investment securities
2under ch. 408.
SB444,30,13 3(4) The authority may not issue bonds unless the issuance is first authorized
4by a bond resolution. Bonds shall bear the dates, mature at the times not exceeding
550 years from their dates of issue, bear interest at the rates, be payable at the times,
6be in the denominations, be in the form, carry the registration and conversion
7privileges, be executed in the manner, be payable in lawful money of the United
8States at the places, and be subject to the terms of redemption, that the bond
9resolution provides. The bonds shall be executed by the manual or facsimile
10signatures of the officers of the authority designated by the board. The bonds may
11be sold at public or private sale at the price, in the manner, and at the time
12determined by the board. Pending preparation of definitive bonds, the authority may
13issue interim receipts or certificates that shall be exchanged for the definitive bonds.
SB444,30,16 14(5) The board may include in bond resolution provisions, which shall be a part
15of the contract with the holders of the bonds that are authorized by the bond
16resolution, any of the following:
SB444,30,1717 (a) Pledging or assigning specified assets or revenues of the authority.
SB444,30,1918 (b) Setting aside reserves or sinking funds, and the regulation, investment, and
19disposition of these funds.
SB444,30,2120 (c) Limitations on the purpose to which or the investments in which the
21proceeds of the sale of any issue of bonds may be applied.
SB444,30,2422 (d) Limitations on the issuance of additional bonds, the terms upon which
23additional bonds may be issued and secured, and the terms upon which additional
24bonds may rank on a parity with, or be subordinate or superior to, other bonds.
SB444,30,2525 (e) Funding, refunding, advance refunding, or purchasing outstanding bonds.
SB444,31,3
1(f) Procedures, if any, by which the terms of any contract with bondholders may
2be amended, the amount of bonds the holders of which must consent to the
3amendment, and the manner in which this consent may be given.
SB444,31,64 (g) Defining the acts or omissions to act that constitute a default in the duties
5of the authority to the bondholders, and providing the rights and remedies of the
6bondholders in the event of a default.
SB444,31,77 (h) Other matters relating to the bonds that the board considers desirable.
SB444,31,11 8(6) Neither the members of the board nor any person executing the bonds is
9liable personally on the bonds or subject to any personal liability or accountability
10by reason of the issuance of the bonds, unless the personal liability or accountability
11is the result of willful misconduct.
SB444,31,20 12239.06 Bond security. The authority may secure bonds by a trust agreement,
13trust indenture, indenture of mortgage, or deed of trust by and between the authority
14and one or more corporate trustees. A bond resolution providing for the issuance of
15bonds so secured shall mortgage, pledge, assign, or grant security interests in some
16or all of the revenues to be received by, and property of, the authority and may contain
17those provisions for protecting and enforcing the rights and remedies of the
18bondholders that are reasonable and proper and not in violation of law. A bond
19resolution may contain other provisions determined by the board to be reasonable
20and proper for the security of the bondholders.
SB444,32,2 21239.07 Bonds not public debt. (1) The state is not liable on bonds, and the
22bonds are not a debt of the state. All bonds shall contain a statement to this effect
23on the face of the bond. A bond issue does not, directly, indirectly, or contingently,
24obligate the state or a political subdivision of the state to levy any tax or make any

1appropriation for payment of the bonds. Nothing in this section prevents the
2authority from pledging its full faith and credit to the payment of bonds.
SB444,32,12 3(2) Nothing in this chapter authorizes the authority to create a debt of the state,
4and all bonds issued by the authority are payable, and shall state that they are
5payable, solely from the funds pledged for their payment in accordance with the bond
6resolution authorizing their issuance or in any trust indenture or mortgage or deed
7of trust executed as security for the bonds. The state is not liable for the payment
8of the principal of or interest on a bond or for the performance of any pledge,
9mortgage, obligation, or agreement that may be undertaken by the authority. The
10breach of any pledge, mortgage, obligation, or agreement undertaken by the
11authority does not impose pecuniary liability upon the state or a charge upon its
12general credit or against its taxing power.
SB444,32,19 13239.08 State pledge. The state pledges to and agrees with the bondholders,
14and persons that enter into contracts with the authority under this chapter, that the
15state will not limit or alter the rights vested in the authority by this chapter before
16the authority has fully met and discharged the bonds, and any interest due on the
17bonds, and has fully performed its contracts, unless adequate provision is made by
18law for the protection of the bondholders or those entering into contracts with the
19authority.
SB444,32,23 20239.09 Liability limited. Neither the state nor any political subdivision of
21the state, nor any officer, employee, or agent of the state or a political subdivision of
22the state who is acting within the scope of employment or agency, is liable for any
23debt, obligation, act, or omission of the authority.
SB444,33,3
1239.10 Annual report. (1) Annually, the board shall submit to the chief clerk
2of each house of the legislature, for distribution to the legislature under s. 13.172 (2),
3a report on the activities of the authority, including all of the following:
SB444,33,44 (a) Its operations, accomplishments, goals, and objectives.
SB444,33,55 (b) A statement of income and expenses for the fiscal year.
SB444,33,66 (c) Its assets and liabilities at the end of its fiscal year.
SB444,33,97 (d) A schedule of its bonds and notes outstanding at the end of its fiscal year,
8together with a statement of the amounts redeemed and incurred during such fiscal
9year.
SB444,33,15 10(2) The authority, annually on January 15, shall file with the department of
11administration and the joint legislative council a complete and current listing of all
12forms, reports, and papers required by the authority to be completed by any person,
13other than a governmental body, as a condition of obtaining the approval of the
14authority or for any other reason. The authority shall attach a blank copy of each
15such form, report, or paper to the listing.
SB444,44 16Section 44 . Nonstatutory provisions.
SB444,33,2217 (1) Staggered terms. Notwithstanding the length of terms specified for the
18members of the board of the Wisconsin Student Loan Refinancing Authority under
19s. 239.02, of the 5 members appointed under s. 239.02 (1) (a) 3. to 6., one of the initial
20members shall be appointed for a term expiring on July 1, 2021, 2 of the initial
21members shall be appointed for terms expiring on July 1, 2022, and the remaining
222 initial members shall be appointed for terms expiring on July 1, 2023.
SB444,45 23Section 45 . Effective dates. This act takes effect on the day after publication,
24or on the 2nd day after publication of the 2019 biennial budget act, whichever is later,
25except as follows:
SB444,34,3
1(1) Financial aid information. The treatment of ss. 39.28 (7), 39.54, and 224.30
2(6) takes effect on the first day of the 7th month beginning after publication, or on
3the 2nd day after publication of the 2019 biennial budget act, whichever is later.
SB444,34,44 (End)
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