AB1220: Bill Text

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).

AB1220,,214 4. The chief executive officer may employ other employees, consultants, agents, and advisors, including legal counsel, and shall attend meetings of the board, except those board meetings authorized under ch. 19 to be conducted in closed session.

AB1220,,215 239.035 Purpose of the Public Bank of Wisconsin. The purpose of the Public Bank of Wisconsin is to accept and hold deposits of public funds and utilize those funds in this state to further the Bank’s goals to do all of the following:

AB1220,,216 (1) Accomplish the Bank’s mission by adhering to priorities of institutional safety and soundness as ensured by division supervision; long-term viability; social return and monetary return on lending and investments; prudent and best banking and business practices; highest ethical, accountability, and transparency standards; and insulation from political influence.

AB1220,,217 (2) Support the expansion and development of public and private measures to mitigate the grave dangers that climate change poses to the public and local enterprises, and to promote reductions in greenhouse gas emissions.

AB1220,,218 (3) Promote economic development and job creation in this state, and support the economic well-being and health of this state, by providing affordable financing to eligible recipients and small- and medium-sized businesses, especially in underserved communities.

AB1220,,219 (4) Assist businesses and municipalities in recovering from the economic repercussions of external shocks, including pandemics, recessions, and natural disasters.

AB1220,,220 (5) Respond to the unmet affordable financing needs of local governmental units.

AB1220,,221 (6) Address the historic and current disadvantages experienced by the state’s minority-owned and women-owned enterprises by providing affordable financing.

AB1220,,222 (7) Assist workers and communities in creating jobs by supporting cooperative business models including worker-owned cooperatives.

AB1220,,223 (8) Increase available affordable housing options for all residents of this state.

AB1220,,224 (9) Promote sustainable agriculture and address food insecurity, particularly by providing financing to family-owned farms and rural businesses that serve them.

AB1220,,225 (10) Support nonprofit and community-based organizations that work to address the results of racial injustice or to promote women’s economic and social equity or both.

AB1220,,226 (11) Provide economic support to state agencies, local governmental units, and nonprofit organizations, including community development authorities, redevelopment authorities, housing authorities, and community development corporations.

AB1220,,227 (12) Strengthen state-chartered banks, particularly through participatory loan programs.

AB1220,,228 (13) Enable the state to share in the methods of monetary support the federal government provides to commercial banks.

AB1220,,229 (14) Assist students in need of additional low-cost student loans in financing the cost of higher education.

AB1220,,230 239.04 Powers and duties of the Bank, board. (1) (a) Except as provided in par. (e) and as otherwise provided in this chapter, the Public Bank of Wisconsin shall have all the powers of a state bank organized under ch. 221.

AB1220,,231 (b) 1. The Public Bank of Wisconsin may, but is not required to, become a member of the federal reserve system.

AB1220,,232 2. The Public Bank of Wisconsin may, but is not required to, become a member of the federal deposit insurance corporation.

AB1220,,233 3. The Public Bank of Wisconsin may, but is not required to, establish a master account with the federal reserve system to enhance the Bank’s liquidity.

AB1220,,234 (c) The Public Bank of Wisconsin may conduct operations or engage in activities through subsidiaries to the same extent as other state banks organized under ch. 221, but these subsidiaries are subject to any restriction or limitation applicable if the Bank directly conducted the operation or engaged in the activity.

AB1220,,235 (d) The Public Bank of Wisconsin may accept and solicit property, including any gifts, donations, grants, bequests, loans, public funds, or other private contributions, for any of the purposes of this chapter.

AB1220,,236 (e) The Public Bank of Wisconsin may accept public deposits and open deposit accounts only as provided in sub. (7) (d) and s. 34.05 (5). The Public Bank of Wisconsin may not pay interest on deposit accounts.

AB1220,,237 (f) The Public Bank of Wisconsin shall maintain complete records of all banking transactions.

AB1220,,238 (g) The board shall establish technical advisory committees and consult with public and private sector experts in substantive areas related to the Bank’s mission, objectives, and duties.

AB1220,,239 (2) (a) The board shall have all the powers necessary or convenient to carry out the purposes and provisions of this chapter.

AB1220,,240 (b) 1. The board shall operate the Bank to ensure its soundness and sustainability and, subject to subd. 2., to accomplish the Bank’s purposes under this chapter. The board shall adhere to the operating priorities identified in s. 239.035 (1).

AB1220,,241 2. The board may direct the Bank’s annual earnings to be added to the Bank’s capital or distributed to the state, and the board may direct Bank deposits to be invested in the state investment fund under s. 25.14.

AB1220,,242 (c) The board shall regularly review the Bank’s financial statements and other records to ensure that the Bank is in compliance with all applicable laws and regulations and with all reporting requirements under s. 239.08 (1).