AB1220: Bill Text

AB1220,50 Section 50. Chapter 239 of the statutes is created to read:

AB1220,,126 CHAPTER 239

AB1220,,127 PUBLIC BANK OF WISCONSIN

AB1220,,128 239.01 Definitions. In this chapter:

AB1220,,129 (1) “Affordable financing” means any of the following:

AB1220,,130 (a) As provided to an eligible recipient, any of the following:

AB1220,,131 1. The provision of credit and loans, including long-term loans and unsecured loans, at affordable rates and for which the Public Bank of Wisconsin employs underwriting methods that are flexible in their criteria, terms, and uses.

AB1220,,132 2. The provision of letters of credit, guarantees, subordinate loans, and other forms of risk management to facilitate additional financing from sources other than the Public Bank of Wisconsin.

AB1220,,133 3. The provision of any type of financing authorized for a state bank organized under ch. 221.

AB1220,,134 4. The provision of technical assistance.

AB1220,,135 (b) As provided to an eligible recipient under sub. (7) (c), (e), (h), or (k), any of the following:

AB1220,,136 1. The provision of equity financing, including preferred stock, common stock, equity-equivalent capital, and other hybrid instruments.

AB1220,,137 2. The provision of grants, donations, and contributions, including grants given over a period of years to provide predictability for an eligible recipient.

AB1220,,138 (2) “Affordable housing” means any of the following:

AB1220,,139 (a) Affordable housing, as defined in s. 66.1105 (2) (ab).

AB1220,,140 (b) Low-income housing, as defined in s. 70.11 (4a) (b).

AB1220,,141 (3) “Board,” except in the phrase “board of advisors,” means the governing board of the Public Bank of Wisconsin.

AB1220,,142 (4) “Community development authority” means a housing and community development authority organized under s. 66.1335.

AB1220,,143 (5) “Community development corporation” has the meaning given in s. 234.94 (2).

AB1220,,144 (6) “Division” means the division of banking in the department of financial institutions.

AB1220,,145 (7) “Eligible recipient,” with respect to affordable financing provided by the Public Bank of Wisconsin, means any of the following:

AB1220,,146 (a) Any local governmental unit or enterprise managed in whole or in part by a local governmental unit.

AB1220,,147 (b) A nonprofit organization that has a primary goal of benefitting the state or its residents through community development.

AB1220,,148 (c) A land trust.

AB1220,,149 (d) A cooperative organized under ch. 185 or 193.

AB1220,,150 (e) An entity created by financial institutions that pools funds to lend for affordable housing development.

AB1220,,151 (f) A developer of housing or preservation projects if all the entities financing a project invite the Public Bank of Wisconsin to participate with financing.

AB1220,,152 (g) A bank, savings bank, savings and loan association, or credit union organized under the laws of this state if the affordable financing extended to the bank, savings bank, savings and loan association, or credit union is used to support another eligible recipient under this subsection.

AB1220,,153 (h) A community development authority, redevelopment authority, housing authority, or community development corporation.

AB1220,,154 (i) A small business enterprise doing business primarily in this state that offers a sustainable business plan and merits credit but is unable to procure affordable financing from other financial institutions in this state.

AB1220,,155 (j) A small- or medium-sized farm and its related industries.

AB1220,,156 (k) An investment vehicle created for the primary purpose of supporting another eligible recipient under this subsection.

AB1220,,157 (8) “Housing authority” means a housing authority organized under ss. 66.1201 to 66.1213.

AB1220,,158 (9) “Land trust” means a nonstock corporation or other nonprofit organization that acquires, manages, develops, or maintains land or easements to promote the preservation or restoration of land in this state for recreational, agricultural, scenic, residential, or commercial use, including for use related to climate security, water resource protection, or affordable housing.

AB1220,,159 (10) “Local governmental unit” has the meaning given in s. 16.97 (7).

AB1220,,160 (11) “Minority group member” has the meaning given in s. 16.287 (1) (f).

AB1220,,161 (12) “Municipality” means a city, village, or town.

AB1220,,162 (13) “Nonprofit organization” has the meaning given in s. 23.097 (1).

AB1220,,163 (14) “Participation loan” means a loan in which the Public Bank of Wisconsin shares in funding or overseeing an advance of credit under a written agreement between the originator of the loan and the Public Bank of Wisconsin.

AB1220,,164 (15) “Public Bank of Wisconsin” or “Bank” means the authority created under s. 239.02.

AB1220,,165 (16) “Public deposit” has the meaning given in s. 34.01 (3).

AB1220,,166 (17) “Redevelopment authority” means a redevelopment authority organized under s. 66.1333.

AB1220,,167 (18) “Rural area” means a municipality with a population density of less than 500 persons per square mile, according to the latest federal decennial census.

AB1220,,168 (19) “Rural business concern” means a small business that has its principal business operations in one or more rural areas and that is engaged in an occupation that directly supports the economy of the rural area or areas in which it is located.

AB1220,,169 (20) “Small business” has the meaning given in s. 227.114 (1).

AB1220,,170 (21) “Underserved neighborhood” means a neighborhood that meets any of the following criteria:

AB1220,,171 (a) The annual median household income in the neighborhood does not exceed 65 percent of the statewide annual median household income.

AB1220,,172 (b) Minority group members comprise at least 40 percent of the population in the neighborhood.

AB1220,,173 (c) At least 25 percent of households in the neighborhood lack English language proficiency.

AB1220,,174 (d) Minority group members comprise at least 25 percent of the population of the neighborhood and the annual median household income of the municipality in which the neighborhood is located does not exceed 150 percent of the statewide annual median household income.

AB1220,,175 239.02 Creation of authority. (1) There is created an authority, which is a public body corporate and politic, to be known as the “Public Bank of Wisconsin.”

AB1220,,176 (2) The Public Bank of Wisconsin shall take all action necessary to organize as a state bank under ch. 221.

AB1220,,177 239.03 Organization of authority; governing board; chief executive officer. (1) All powers and duties of the Public Bank of Wisconsin shall be exercised or carried out by a governing board appointed under this section, except to the extent the board delegates the power or duty to an employee of the Bank or a committee established by the board.

AB1220,,178 (2) (a) Subject to the requirements under subs. (3) and (4), the board shall consist of the following members:

AB1220,,179 1. The state treasurer or the state treasurer’s designee.

AB1220,,180 2. The state superintendent of public instruction or the state superintendent’s designee.

AB1220,,181 3. The president of the University of Wisconsin System or the president’s designee.

AB1220,,182 4. One member with professional experience and expertise in the operation of small business enterprises located in this state, appointed by the governor.

AB1220,,183 5. One member with professional experience and expertise in economic development, appointed by the governor.

AB1220,,184 6. One member with professional experience and expertise in local government and administration, appointed by the governor.

AB1220,,185 7. One member with professional experience and expertise in environmentally conscious financing, appointed by the governor.

AB1220,,186 8. One member with professional experience and expertise in the operation of state banks or state-chartered savings banks or savings and loan associations, appointed by the governor.

AB1220,,187 9. One member with professional experience and expertise in the operation of state-chartered credit unions, appointed by the governor.

AB1220,,188 10. One member with professional experience and expertise in public finance, appointed by the governor.

AB1220,,189 11. One member with professional experience and expertise in the operation of community development authorities, redevelopment authorities, housing authorities, or community development corporations, appointed by the governor.

AB1220,,190 (b) The members under par. (a) 4. to 11. shall be appointed for a term of 4 years.

AB1220,,191 (3) (a) An individual may not serve as a board member unless the individual is a resident of this state and, if appointed, was a resident of this state for at least 90 days before the appointment.

AB1220,,192 (b) Except for a board member described in sub. (2) (a) 1. to 3., an individual may not serve as, or be appointed as, a board member if any of the following applies:

AB1220,,193 1. The individual holds a federal, state, or local elected or appointed office or is a candidate for such an office.

AB1220,,194 2. The individual serves as an official in a political party.

AB1220,,195 3. Within the immediately preceding 4-year period, the individual held an office described in subd. 1.

AB1220,,196 (c) An individual may not serve as a board member for more than 8 years.

AB1220,,197 (4) Each board member shall take an oath to faithfully and impartially execute his or her duties as a board member.

AB1220,,198 (5) A vacancy on the board shall be filled in the same manner as the original appointment to the board for the remainder of the unexpired term, if any.

AB1220,,199 (6) A member of the board may not be compensated for his or her services but shall be reimbursed for actual and necessary expenses, including travel expenses, incurred in the performance of his or her duties.

AB1220,,200 (7) The members of the board shall annually elect a chairperson and may elect other officers as they consider appropriate. Upon motion of at least 6 board members, the board shall hold a vote at a special meeting to retain or replace the board chairperson.

AB1220,,201 (8) Nine board members constitute a quorum of the board and the affirmative vote of a majority of board members present and voting is required for any action of the board, including election of the board chairperson.

AB1220,,202 (9) (a) The board shall meet quarterly and at any other time it considers necessary or upon the written request of the board chairperson or 6 board members. The board may hold meetings by means of remote communication.

AB1220,,203 (b) The board shall provide notice of any board meeting to all board members, to the chairperson of the board of advisors, and to any other person who requests notice.

AB1220,,204 (c) The board shall adopt procedures governing its meetings.

AB1220,,205 (d) All board meetings shall be staffed with a Bank officer to serve as the board secretary. The board secretary shall keep a record of the proceedings of the board meeting and shall be the custodian of all meeting records.

AB1220,,206 (e) The chairperson of the board of advisors or the chairperson’s designee, or both, may attend any board meetings as a nonvoting participant, except those meetings authorized under ch. 19 to be conducted in closed session.

AB1220,,207 (10) (a) The board shall appoint a chief executive officer of the Bank who may not be a member of the board and who shall serve at the pleasure of the board. Notwithstanding sub. (8), appointment of the chief executive officer requires the affirmative vote of at least 8 board members. At the discretion of the board chairperson, the board may utilize a form of ranked-choice voting to ensure that the 8-vote threshold is satisfied.

AB1220,,208 (b) The board may delegate to the chief executive officer any powers and duties the board considers proper.

AB1220,,209 (c) The board shall terminate the chief executive officer upon a vote of no confidence in the chief executive officer by at least 8 board members. If this occurs, the board shall immediately initiate the process of hiring a new chief executive officer.

AB1220,,210 (d) If there is a vacancy, absence, or disability in the position of chief executive officer, as determined by the board, then notwithstanding sub. (8), the board may, upon the affirmative vote of 7 board members, designate an acting chief executive officer who has similar qualifications to those required under this subsection for the chief executive officer. An acting chief executive officer has all the powers and duties of the chief executive officer.

AB1220,,211 (e) 1. The chief executive officer shall be compensated as determined by the board and shall devote full time and attention to the duties of the office.

AB1220,,212 2. The chief executive officer shall have skill and experience in management and banking.

AB1220,,213 3. The chief executive officer is the executive and administrative head of the Bank and is responsible for the Bank’s administration and the Bank’s compliance with this chapter. The chief executive officer is responsible for all aspects of the Bank’s management, including its physical facilities, investments, loan portfolio, accounting, risk management, and regulatory compliance, as well as the responsibilities specified in s. 239.05 (2).