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LRB-0278/2
ARG:amn
2019 - 2020 LEGISLATURE
September 23, 2019 - Introduced by Senators Hansen, Ringhand, Bewley,
Carpenter, Johnson, Larson, Risser, Shilling, Smith, L. Taylor and Wirch,
cosponsored by Representatives Shankland, Anderson, Billings, Bowen,
Brostoff, Crowley, Fields, Goyke, Hebl, Milroy, Ohnstad, Pope, Riemer,
Sargent, Sinicki, Subeck, C. Taylor and Zamarripa. Referred to Committee on
Universities, Technical Colleges, Children and Families.
SB444,1,10 1An Act to amend 13.172 (1), 13.48 (13) (a), 13.62 (2), 13.94 (4) (a) 1., 13.95
2(intro.), 16.002 (2), 16.004 (4), 16.004 (5), 16.004 (12) (a), 16.045 (1) (a), 16.15
3(1) (ab), 16.41 (4), 16.417 (1) (b), 16.52 (7), 16.528 (1) (a), 16.53 (2), 16.54 (9) (a)
41., 16.765 (1), 16.765 (2), 16.765 (5), 16.765 (6), 16.765 (7) (intro.), 16.765 (7) (d),
516.765 (8), 16.85 (2), 16.865 (8), 77.54 (9a) (a), 100.45 (1) (dm) and 230.03 (3);
6and to create 13.94 (1) (dt), 13.94 (1s) (c) 10., 19.42 (10) (t), 19.42 (13) (q),
720.195, 39.28 (7), 39.52, 39.54, 39.56, 40.02 (54) (n), 70.11 (38v), 224.30 (6) and
8chapter 239 of the statutes; relating to: student loans, creating an authority
9to be known as the Wisconsin Student Loan Refinancing Authority, granting
10rule-making authority, and making an appropriation.
Analysis by the Legislative Reference Bureau
The Wisconsin Student Loan Refinancing Authority
This bill creates an authority, which is a public body corporate and politic, to be
known as the Wisconsin Student Loan Refinancing Authority (WSLRA). The
WSLRA is governed by a board that consists of four members of the legislature, three
members who are students of an institution of higher education, and two members

with experience in making student loans. The five members of the board who are not
members of the legislature are nominated by the governor, and with the advice and
consent of the senate appointed, to serve two- or three-year terms. The board
appoints the chief executive officer of WSLRA and annually elects the chairperson
of the board. The board is given all the powers necessary or convenient to carry out
its duties, as well as specific powers to conduct its corporate business, including the
power to issue bonds for any corporate purpose.
Under the bill, the board must develop and implement a loan program under
which state residents may refinance student loans. Under the program, WSLRA
provides a loan to an individual to pay off some or all of his or her outstanding student
loan debt. To qualify for the program, an individual must satisfy eligibility
requirements established by WSLRA. Under the bill, WSLRA must provide loans
under the program at the lowest possible interest rate that is still sufficient to cover
the expenses of the program. A loan issued under the program is not dischargeable
in a bankruptcy proceeding.
Financial aid information
This bill requires the Department of Financial Institutions to compile data
related to private student loans for the purpose of comparing private lending
institutions' student loan interest rates and repayment plans. A “private student
loan" is a loan issued by a private lending institution for the purpose of paying for
or financing higher education expenses, including tuition and fees, books and
supplies, and room and board. DFI must create and maintain a list of private lending
institutions that provide the lowest rates and best repayment options on student
loans. DFI must also compile a list of the top ten best private lending institutions
based on rates and policies that are most favorable to the student borrower. DFI
must place these lists on DFI's Internet site and update the Internet site monthly to
ensure that the student loan information in these lists is current and accurate. DFI's
Internet site must also contain information pertaining to lending institutions that
do not make the top ten list, including identifying those lending institutions that
provide the worst rates and strictest repayment options. DFI may satisfy its duties
under the bill through a designee or third-party contractor.
The bill also requires an institution or college campus within the University of
Wisconsin System, a technical college within the technical college system, a tribally
controlled college, or a private, nonprofit institution of higher education located in
this state (institution of higher education) to provide to a prospective or newly
accepted student and to the student's parents clearly outlined and
easy-to-understand information pertaining to all of the following:
1. The total cost of attendance at the institution of higher education.
2. The approximate or, if known, the actual total amount of financial aid that
the student would receive from the institution of higher education, and the
approximate or, if known, the actual total amount of student loan debt that the
student would accumulate, over the course of four years, if the student were to attend
the institution of higher education for four years (student loan debt).

3. Student loan rates, repayment plans, default rates, and the actual monthly
payment that would be required to pay that student loan debt when the loan becomes
due.
Finally, the bill requires an institution of higher education and the Higher
Educational Aids Board to create on their Internet sites a link to that portion of DFI's
Internet site containing the lists and other information required under the bill.
Student loan counseling
This bill requires any institution of higher education in this state that offers an
associate degree or higher to provide loan counseling for its students. Under the bill,
before a student enters into a student loan agreement, the institution must provide
the student with comprehensive information on the terms and conditions of a loan
and the responsibilities the student has with respect to the loan. A lender may not
accept an application for a private student loan, or assess any fees for the loan, unless
the lender has received certification from the applicant's institution of higher
education that the applicant has received such counseling.
The bill also requires an institution of higher education to provide a student
with information when the student leaves the institution, whether through
graduation, transfer, or otherwise. The information must include available loan
repayment plans, debt management strategies, options for prepayment of loans, and
the consequences of defaulting on a loan.
Finally, the bill authorizes an institution of higher education to assess a lender
a reasonable fee of up to $50 to defray the cost of the student counseling required
under the bill.
Student loan debt report
Under current law, HEAB administers certain grant and loan programs for
resident students enrolled in institutions of higher education in this state.
This bill requires HEAB to submit an annual report to the Joint Committee on
Finance regarding student loan debt incurred in the previous year by resident
undergraduate students enrolled in institutions of higher education located in this
state. The report must include that information, together with all of the following:
1. The statewide average amount of student loan debt incurred in the previous
year by resident undergraduate students enrolled in institutions of higher education
located in this state.
2. A comparison of that statewide average to the national average amount of
student loan debt incurred in the previous year by undergraduate students enrolled
in institutions of higher education in the United States.
3. A comparison of that statewide average to the statewide average amount of
student loan debt incurred in the previous year by undergraduate students in the
state with the lowest ratio of statewide average student loan debt to the lowest
quintile of state per capita income.

For further information see the state and local 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:
SB444,1 1Section 1 . 13.172 (1) of the statutes is amended to read:
SB444,4,72 13.172 (1) In this section, “agency" means an office, department, agency,
3institution of higher education, association, society, or other body in state
4government created or authorized to be created by the constitution or any law, that
5is entitled to expend moneys appropriated by law, including the legislature and the
6courts, and any authority created in subch. II of ch. 114 or in ch. 231, 233, 234, 238,
7239, or 279.
SB444,2 8Section 2 . 13.48 (13) (a) of the statutes is amended to read:
SB444,4,219 13.48 (13) (a) Except as provided in par. (b) or (c), every building, structure or
10facility that is constructed for the benefit of or use of the state, any state agency,
11board, commission or department, the University of Wisconsin Hospitals and Clinics
12Authority, the Fox River Navigational System Authority, the Wisconsin Student
13Loan Refinancing Authority,
the Wisconsin Economic Development Corporation, or
14any local professional baseball park district created under subch. III of ch. 229 if the
15construction is undertaken by the department of administration on behalf of the
16district, shall be in compliance with all applicable state laws, rules, codes and
17regulations but the construction is not subject to the ordinances or regulations of the
18municipality in which the construction takes place except zoning, including without
19limitation because of enumeration ordinances or regulations relating to materials
20used, permits, supervision of construction or installation, payment of permit fees, or
21other restrictions.
SB444,3
1Section 3. 13.62 (2) of the statutes is amended to read:
SB444,5,52 13.62 (2) “Agency" means any board, commission, department, office, society,
3institution of higher education, council, or committee in the state government, or any
4authority created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237, 238, 239,
5or 279, except that the term does not include a council or committee of the legislature.
SB444,4 6Section 4 . 13.94 (1) (dt) of the statutes is created to read:
SB444,5,117 13.94 (1) (dt) Biennially, beginning in 2021, conduct a financial audit of the
8Wisconsin Student Loan Refinancing Authority and a program evaluation audit of
9the programs administered by the Wisconsin Student Loan Refinancing Authority
10under ch. 239. The legislative audit bureau shall file a copy of each audit report
11under this paragraph with the distributees specified in par. (b).
SB444,5 12Section 5 . 13.94 (1s) (c) 10. of the statutes is created to read:
SB444,5,1413 13.94 (1s) (c) 10. The Wisconsin Student Loan Refinancing Authority for the
14cost of the audit required to be performed under sub. (1) (dt).
SB444,6 15Section 6 . 13.94 (4) (a) 1. of the statutes is amended to read:
SB444,6,716 13.94 (4) (a) 1. Every state department, board, examining board, affiliated
17credentialing board, commission, independent agency, council or office in the
18executive branch of state government; all bodies created by the legislature in the
19legislative or judicial branch of state government; any public body corporate and
20politic created by the legislature including specifically the Fox River Navigational
21System Authority, the Lower Fox River Remediation Authority, the Wisconsin
22Aerospace Authority, the Wisconsin Student Loan Refinancing Authority, the
23Wisconsin Economic Development Corporation, a professional baseball park district,
24a local professional football stadium district, a local cultural arts district, and a
25long-term care district under s. 46.2895; every Wisconsin works agency under subch.

1III of ch. 49; every provider of medical assistance under subch. IV of ch. 49; technical
2college district boards; every county department under s. 51.42 or 51.437; every
3nonprofit corporation or cooperative or unincorporated cooperative association to
4which moneys are specifically appropriated by state law; and every corporation,
5institution, association or other organization which receives more than 50 percent
6of its annual budget from appropriations made by state law, including subgrantee or
7subcontractor recipients of such funds.
SB444,7 8Section 7 . 13.95 (intro.) of the statutes is amended to read:
SB444,6,21 913.95 Legislative fiscal bureau. (intro.) There is created a bureau to be
10known as the “Legislative Fiscal Bureau" headed by a director. The fiscal bureau
11shall be strictly nonpartisan and shall at all times observe the confidential nature
12of the research requests received by it; however, with the prior approval of the
13requester in each instance, the bureau may duplicate the results of its research for
14distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's
15designated employees shall at all times, with or without notice, have access to all
16state agencies, the University of Wisconsin Hospitals and Clinics Authority, the
17Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
18Wisconsin Student Loan Refinancing Authority,
the Wisconsin Economic
19Development Corporation, and the Fox River Navigational System Authority, and to
20any books, records, or other documents maintained by such agencies or authorities
21and relating to their expenditures, revenues, operations, and structure.
SB444,8 22Section 8 . 16.002 (2) of the statutes is amended to read:
SB444,7,223 16.002 (2) “Departments" means constitutional offices, departments, and
24independent agencies and includes all societies, associations, and other agencies of
25state government for which appropriations are made by law, but not including

1authorities created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237, 238, 239,
2or 279.
SB444,9 3Section 9 . 16.004 (4) of the statutes is amended to read:
SB444,7,94 16.004 (4) Freedom of access. The secretary and such employees of the
5department as the secretary designates may enter into the offices of state agencies
6and authorities created under subch. II of ch. 114 and under chs. 231, 233, 234, 237,
7238, 239, and 279, and may examine their books and accounts and any other matter
8that in the secretary's judgment should be examined and may interrogate the
9agency's employees publicly or privately relative thereto.
SB444,10 10Section 10 . 16.004 (5) of the statutes is amended to read:
SB444,7,1411 16.004 (5) Agencies and employees to cooperate. All state agencies and
12authorities created under subch. II of ch. 114 and under chs. 231, 233, 234, 237, 238,
13239, and 279, and their officers and employees, shall cooperate with the secretary
14and shall comply with every request of the secretary relating to his or her functions.
SB444,11 15Section 11 . 16.004 (12) (a) of the statutes is amended to read:
SB444,7,2316 16.004 (12) (a) In this subsection, “state agency" means an association,
17authority, board, department, commission, independent agency, institution, office,
18society, or other body in state government created or authorized to be created by the
19constitution or any law, including the legislature, the office of the governor, and the
20courts, but excluding the University of Wisconsin Hospitals and Clinics Authority,
21the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
22Wisconsin Economic Development Corporation, the Wisconsin Student Loan
23Refinancing Authority,
and the Fox River Navigational System Authority.
SB444,12 24Section 12 . 16.045 (1) (a) of the statutes is amended to read:
SB444,8,6
116.045 (1) (a) “Agency" means an office, department, independent agency,
2institution of higher education, association, society, or other body in state
3government created or authorized to be created by the constitution or any law, that
4is entitled to expend moneys appropriated by law, including the legislature and the
5courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 232,
6233, 234, 237, 238, 239, or 279.
SB444,13 7Section 13 . 16.15 (1) (ab) of the statutes is amended to read:
SB444,8,118 16.15 (1) (ab) “Authority" has the meaning given under s. 16.70 (2), but
9excludes the University of Wisconsin Hospitals and Clinics Authority, the Lower Fox
10River Remediation Authority, the Wisconsin Student Loan Refinancing Authority,
11and the Wisconsin Economic Development Corporation.
SB444,14 12Section 14 . 16.41 (4) of the statutes is amended to read:
SB444,8,1413 16.41 (4) In this section, “authority" means a body created under subch. II of
14ch. 114 or under ch. 231, 233, 234, 237, 238, 239, or 279.
SB444,15 15Section 15 . 16.417 (1) (b) of the statutes is amended to read:
SB444,8,1716 16.417 (1) (b) “Authority" means a body created under subch. II of ch. 114 or
17ch. 231, 232, 233, 234, 237, 238, 239, or 279.
SB444,16 18Section 16 . 16.52 (7) of the statutes is amended to read:
SB444,9,319 16.52 (7) Petty cash account. With the approval of the secretary, each agency
20that is authorized to maintain a contingent fund under s. 20.920 may establish a
21petty cash account from its contingent fund. The procedure for operation and
22maintenance of petty cash accounts and the character of expenditures therefrom
23shall be prescribed by the secretary. In this subsection, “agency" means an office,
24department, independent agency, institution of higher education, association,
25society, or other body in state government created or authorized to be created by the

1constitution or any law, that is entitled to expend moneys appropriated by law,
2including the legislature and the courts, but not including an authority created in
3subch. II of ch. 114 or in ch. 231, 233, 234, 237, 238, 239, or 279.
SB444,17 4Section 17 . 16.528 (1) (a) of the statutes is amended to read:
SB444,9,105 16.528 (1) (a) “Agency" means an office, department, independent agency,
6institution of higher education, association, society, or other body in state
7government created or authorized to be created by the constitution or any law, that
8is entitled to expend moneys appropriated by law, including the legislature and the
9courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 233,
10234, 237, 238, 239, or 279.
SB444,18 11Section 18 . 16.53 (2) of the statutes is amended to read:
SB444,9,2012 16.53 (2) Improper invoices. If an agency receives an improperly completed
13invoice, the agency shall notify the sender of the invoice within 10 working days after
14it receives the invoice of the reason it is improperly completed. In this subsection,
15“agency" means an office, department, independent agency, institution of higher
16education, association, society, or other body in state government created or
17authorized to be created by the constitution or any law, that is entitled to expend
18moneys appropriated by law, including the legislature and the courts, but not
19including an authority created in subch. II of ch. 114 or in ch. 231, 233, 234, 237, 238,
20239, or 279.
SB444,19 21Section 19 . 16.54 (9) (a) 1. of the statutes is amended to read:
SB444,9,2522 16.54 (9) (a) 1. “Agency" means an office, department, independent agency,
23institution of higher education, association, society or other body in state
24government created or authorized to be created by the constitution or any law, which
25is entitled to expend moneys appropriated by law, including the legislature and the

1courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 233,
2234, 237, 238, 239, or 279.
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