SB1106: Bill Text

SB1106,,104 34.05 (5) (a) Notwithstanding any other provision of this chapter, the Public Bank of Wisconsin shall be a public depository of the state and, no later than January 1, 2028, the Public Bank of Wisconsin shall be the state’s only public depository. Except as provided in pars. (b) and (c), to accomplish this transition, the state’s public moneys shall be deposited as follows:

SB1106,,105 1. By January 1, 2025, at least 30 percent of the state’s public deposits shall be with the Public Bank of Wisconsin.

SB1106,,106 2. By January 1, 2026, at least 50 percent of the state’s public deposits shall be with the Public Bank of Wisconsin.

SB1106,,107 3. By January 1, 2027, at least 80 percent of the state’s public deposits shall be with the Public Bank of Wisconsin.

SB1106,,108 4. By January 1, 2028, all of the state’s public deposits shall be with the Public Bank of Wisconsin.

SB1106,,109 (b) No later than November 1, 2024, the governing board of the Public Bank of Wisconsin shall review state accounts to determine whether any public moneys received by the state are unsuitable for deposit in the Public Bank of Wisconsin and shall submit to the governor, to the secretary of administration, and to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3), a report identifying any such public moneys. Upon approval of the secretary of administration, such public moneys may not be deposited in the Public Bank of Wisconsin.

SB1106,,110 (c) If the governing board of the Public Bank of Wisconsin, in consultation and agreement with the secretary of administration, determines that the Public Bank of Wisconsin does not have sufficient capacity to accept and manage the state’s public moneys, the deposit schedule under par. (a) shall be delayed and the governing board shall provide to the secretary of administration a plan and time frame to begin such deposits. Deposits may not be delayed under this paragraph beyond December 31, 2025.

SB1106,43 Section 43. 34.07 of the statutes is amended to read:

SB1106,,112 34.07 Security. A surety bond or other security, including an irrevocable letter of credit issued by a federal home loan bank, state bank, national bank, federal or state savings bank, federal or state credit union, or federal or state savings and loan association, may be required of or given by any public depository for any public deposits that exceed the amount of deposit insurance provided by an agency of the United States and the coverage provided under s. 34.08 (2). This section does not apply with respect to the Public Bank of Wisconsin.

SB1106,44 Section 44. 40.02 (54) (n) of the statutes is created to read:

SB1106,,114 40.02 (54) (n) The Public Bank of Wisconsin.

SB1106,45 Section 45. 70.11 (38v) of the statutes is created to read:

SB1106,,116 70.11 (38v) Public Bank of Wisconsin. All property owned by the Public Bank of Wisconsin, provided that use of the property is primarily related to the purposes of the Public Bank of Wisconsin.

SB1106,46 Section 46. 71.26 (1) (be) of the statutes is amended to read:

SB1106,,118 71.26 (1) (be) Certain authorities. Income of the University of Wisconsin Hospitals and Clinics Authority, of the Fox River Navigational System Authority, of the Wisconsin Economic Development Corporation, of the Public Bank of Wisconsin, and of the Wisconsin Aerospace Authority.

SB1106,47 Section 47. 77.54 (9a) (a) of the statutes is amended to read:

SB1106,,120 77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, the Public Bank of Wisconsin, and the Fox River Navigational System Authority.

SB1106,48 Section 48. 100.45 (1) (dm) of the statutes is amended to read:

SB1106,,122 100.45 (1) (dm) “State agency” means any office, department, agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law which is entitled to expend moneys appropriated by law, including the legislature and the courts, the Wisconsin Housing and Economic Development Authority, the Bradley Center Sports and Entertainment Corporation, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation, the Public Bank of Wisconsin, and the Fox River Navigational System Authority.

SB1106,49 Section 49. 230.03 (3) of the statutes is amended to read:

SB1106,,124 230.03 (3) “Agency” means any board, commission, committee, council, or department in state government or a unit thereof created by the constitution or statutes if such board, commission, committee, council, department, unit, or the head thereof, is authorized to appoint subordinate staff by the constitution or statute, except the Board of Regents of the University of Wisconsin System, a legislative or judicial board, commission, committee, council, department, or unit thereof or an authority created under subch. II of ch. 114 or under ch. 231, 232, 233, 234, 237, 238, 239, or 279. “Agency” does not mean any local unit of government or body within one or more local units of government that is created by law or by action of one or more local units of government.

SB1106,50 Section 50. Chapter 239 of the statutes is created to read:

SB1106,,126 CHAPTER 239

SB1106,,127 PUBLIC BANK OF WISCONSIN

SB1106,,128 239.01 Definitions. In this chapter:

SB1106,,129 (1) “Affordable financing” means any of the following:

SB1106,,130 (a) As provided to an eligible recipient, any of the following:

SB1106,,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.

SB1106,,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.

SB1106,,133 3. The provision of any type of financing authorized for a state bank organized under ch. 221.

SB1106,,134 4. The provision of technical assistance.

SB1106,,135 (b) As provided to an eligible recipient under sub. (7) (c), (e), (h), or (k), any of the following:

SB1106,,136 1. The provision of equity financing, including preferred stock, common stock, equity-equivalent capital, and other hybrid instruments.

SB1106,,137 2. The provision of grants, donations, and contributions, including grants given over a period of years to provide predictability for an eligible recipient.

SB1106,,138 (2) “Affordable housing” means any of the following:

SB1106,,139 (a) Affordable housing, as defined in s. 66.1105 (2) (ab).

SB1106,,140 (b) Low-income housing, as defined in s. 70.11 (4a) (b).

SB1106,,141 (3) “Board,” except in the phrase “board of advisors,” means the governing board of the Public Bank of Wisconsin.

SB1106,,142 (4) “Community development authority” means a housing and community development authority organized under s. 66.1335.

SB1106,,143 (5) “Community development corporation” has the meaning given in s. 234.94 (2).

SB1106,,144 (6) “Division” means the division of banking in the department of financial institutions.

SB1106,,145 (7) “Eligible recipient,” with respect to affordable financing provided by the Public Bank of Wisconsin, means any of the following:

SB1106,,146 (a) Any local governmental unit or enterprise managed in whole or in part by a local governmental unit.

SB1106,,147 (b) A nonprofit organization that has a primary goal of benefitting the state or its residents through community development.

SB1106,,148 (c) A land trust.

SB1106,,149 (d) A cooperative organized under ch. 185 or 193.

SB1106,,150 (e) An entity created by financial institutions that pools funds to lend for affordable housing development.

SB1106,,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.

SB1106,,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.

SB1106,,153 (h) A community development authority, redevelopment authority, housing authority, or community development corporation.

SB1106,,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.

SB1106,,155 (j) A small- or medium-sized farm and its related industries.

SB1106,,156 (k) An investment vehicle created for the primary purpose of supporting another eligible recipient under this subsection.

SB1106,,157 (8) “Housing authority” means a housing authority organized under ss. 66.1201 to 66.1213.

SB1106,,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.

SB1106,,159 (10) “Local governmental unit” has the meaning given in s. 16.97 (7).

SB1106,,160 (11) “Minority group member” has the meaning given in s. 16.287 (1) (f).

SB1106,,161 (12) “Municipality” means a city, village, or town.

SB1106,,162 (13) “Nonprofit organization” has the meaning given in s. 23.097 (1).

SB1106,,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.

SB1106,,164 (15) “Public Bank of Wisconsin” or “Bank” means the authority created under s. 239.02.

SB1106,,165 (16) “Public deposit” has the meaning given in s. 34.01 (3).

SB1106,,166 (17) “Redevelopment authority” means a redevelopment authority organized under s. 66.1333.

SB1106,,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.

SB1106,,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.

SB1106,,169 (20) “Small business” has the meaning given in s. 227.114 (1).

SB1106,,170 (21) “Underserved neighborhood” means a neighborhood that meets any of the following criteria:

SB1106,,171 (a) The annual median household income in the neighborhood does not exceed 65 percent of the statewide annual median household income.

SB1106,,172 (b) Minority group members comprise at least 40 percent of the population in the neighborhood.

SB1106,,173 (c) At least 25 percent of households in the neighborhood lack English language proficiency.

SB1106,,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.

SB1106,,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.”

SB1106,,176 (2) The Public Bank of Wisconsin shall take all action necessary to organize as a state bank under ch. 221.

SB1106,,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.

SB1106,,178 (2) (a) Subject to the requirements under subs. (3) and (4), the board shall consist of the following members:

SB1106,,179 1. The state treasurer or the state treasurer’s designee.

SB1106,,180 2. The state superintendent of public instruction or the state superintendent’s designee.

SB1106,,181 3. The president of the University of Wisconsin System or the president’s designee.

SB1106,,182 4. One member with professional experience and expertise in the operation of small business enterprises located in this state, appointed by the governor.

SB1106,,183 5. One member with professional experience and expertise in economic development, appointed by the governor.

SB1106,,184 6. One member with professional experience and expertise in local government and administration, appointed by the governor.

SB1106,,185 7. One member with professional experience and expertise in environmentally conscious financing, appointed by the governor.

SB1106,,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.

SB1106,,187 9. One member with professional experience and expertise in the operation of state-chartered credit unions, appointed by the governor.

SB1106,,188 10. One member with professional experience and expertise in public finance, appointed by the governor.

SB1106,,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.

SB1106,,190 (b) The members under par. (a) 4. to 11. shall be appointed for a term of 4 years.

SB1106,,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.

SB1106,,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: