AB270: Bill Text

AB270,27,23 235.10 Refunding bonds. (1) The authority may issue bonds to fund or refund any outstanding bond, including the payment of any redemption premium on the outstanding bond and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase, or maturity.

AB270,28,3 (2) The authority may apply the proceeds of any bond issued to fund or refund any outstanding bond to purchase, retire at maturity, or redeem any outstanding bond. The authority may, pending application, place the proceeds in escrow to be applied to the purchase, retirement at maturity, or redemption of any outstanding bond at any time.

AB270,28,6 235.11 Limit on amount of outstanding bonds. The authority may not have outstanding at any one time bonds in an aggregate principal amount exceeding $500,000,000, excluding bonds issued to refund outstanding bonds.

AB270,28,17 235.12 Annual reports. (1) The authority shall keep an accurate account of all of its activities and of all of its receipts and expenditures and shall annually in January make a report of its activities, receipts, and expenditures to the governor and the chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2). The reports shall estimate the number of jobs created or maintained as a result of the authority's activities as well as the fiscal impacts and savings resulting from those activities. The reporting of receipts and expenditures shall be in a form approved by the state auditor. The state auditor may investigate the affairs of the authority, may examine the properties and records of the authority, and may prescribe methods of accounting and the rendering of periodical reports in relation to activities undertaken by the authority.

AB270,28,23 (2) Annually on July 1, the authority shall file with the department of administration and the joint legislative council a complete and current listing of all forms, reports, and papers required by the authority to be completed by any person, other than a governmental body, as a condition of obtaining the approval of the authority or for any other reason. The authority shall attach a blank copy of each such form, report, or paper to the listing.

AB270,29,2 235.13 Confidentiality of certain records. The authority shall maintain the confidentiality of records or portions of records consisting of personal or financial information provided by a person seeking a loan, loan guarantee, or other financial assistance from the authority.

AB270,29,4 235.14 Participation in loans. (1) Definition. In this section, “eligible borrower" means a person to which all of the following apply:

AB270,29,6 (a) The person is an individual who resides in this state or a partnership or corporation that operates in this state.

AB270,29,7 (b) The person demonstrates a need for a loan for one of the following:

AB270,29,8 1. The capital, operating expenses, or both of an eligible business.

AB270,29,9 2. Any expenses of an eligible project.

AB270,29,10 (c) The person demonstrates an ability to repay the loan described in par. (b).

AB270,29,18 (d) If the person is an individual, the individual's name does not appear, and if the person is a corporation, no shareholder's name appears, and, if the person is a partnership, no partner's name appears on the statewide support lien docket under s. 49.854 (2) (b) or, if the name of the individual, a shareholder, or a partner appears on that docket, the individual, shareholder, or partner provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

AB270,29,19 (e) The person satisfies any other requirements prescribed by the authority.

AB270,30,2 (2) Participation agreement with lender. A lender seeking to make a loan in which the authority may participate under this section shall apply to the authority for approval. If the lender is approved, the lender and the authority shall enter into a participation agreement that shall provide for the contractual obligations of the lender and the authority with respect to any loan transaction in which the authority participates, the terms and conditions of loans in which the authority participates, and other matters related to the lender's involvement in loans under this section.

AB270,30,8 (3) Participation in loans. (a) In general. The authority may participate, to the extent provided in this subsection, in a loan to an eligible borrower made by a lender with whom the authority enters into a participation agreement under sub. (2). The authority may impose repayment or other terms for its portion of the loan that are different from the lender's loan terms. The authority shall ensure that it obtains a security interest for the loan.

AB270,30,10 (b) Loans. The authority may participate in a loan under par. (a) if all of the following apply:

AB270,30,12 1. The collateral for the loan includes physical plant, equipment, machinery, or other assets.

AB270,30,14 2. The loan does not exceed 80 percent of the appraised value of the collateral for the loan.

AB270,30,16 3. The term of the loan does not exceed 10 years or, for the acquisition of land or facilities, does not exceed 20 years.

AB270,30,18 (c) Maximum amount. The authority may not finance more than 50 percent or $25,000,000, whichever is less, of the principal of any loan under par. (a).

AB270,30,20 (4) Fees. The authority shall charge a fee for assistance provided under this section to cover the costs of administering this section, including legal fees.

AB270,30,23 (5) Guidelines and procedures. The authority shall adopt guidelines and establish procedures for administering this section, including guidelines or procedures related to all of the following:

AB270,30,25 (a) Application procedures for eligible borrowers and for lenders seeking to make loans in which the authority participates under this section.

AB270,31,2 (b) Approval requirements for lenders and additional eligibility requirements for eligible borrowers.

AB270,31,3 (c) The terms of participation agreements under sub. (2).

AB270,31,4 (d) Repayment and security interest requirements.

AB270,31,5 (e) Procedural requirements for the authority's participation in loans.

AB270,31,6 (f) Auditing, inspection, and reporting requirements.

AB270,31,7 (g) Any other relevant matters.

AB270,31,8 235.15 Loan guarantees. (1) Definitions. In this section:

AB270,31,10 (a) “Guaranteed loan" means a loan that is guaranteed by the authority under this section.

AB270,31,12 (b) “Participating lender" means a lender that has entered into a guarantee agreement with the authority under s. 235.16 (2) (a).

AB270,31,16 (2) Eligible loans. If the authority establishes a loan guarantee program under s. 235.16 (2) (a) with a participating lender, the authority may guarantee collection from the Wisconsin clean and renewable energy reserve fund for a loan to a borrower under the program if all of the following apply:

AB270,31,17 (a) The loan is for financing one of the following:

AB270,31,18 1. The capital, operating expenses, or both of an eligible business.

AB270,31,19 2. Any expenses of an eligible project.

AB270,31,22 (b) The total outstanding principal amounts of all loans to the borrower that are guaranteed under this section do not exceed an amount set annually by the authority that may not exceed $25,000,000.

AB270,31,25 (c) The rate of interest on the loan, including any origination fees or other charges relating to the loan, does not exceed a rate determined by the authority after considering the conditions of the financial market.

AB270,32,2 (d) The participating lender obtains a security interest in physical plant, equipment, machinery, or other assets.

AB270,32,5 (e) Unless waived by the authority, the borrower procures a business insurance policy that is approved by the authority and the proceeds of that policy are payable to the participating lender.

AB270,32,9 (f) Unless extended by the authority, the loan term does not extend beyond 10 years after the date that the participating lender disburses the loan or, if the loan is for the acquisition of land or facilities, the loan term does not extend beyond 20 years after the date that the participating lender disburses the loan.

AB270,32,12 (g) The proceeds of the loan are not applied to the outstanding balance of any other loan, except that, subject to sub. (4), the proceeds may be used to refinance a loan under this section.

AB270,32,15 (h) If the loan is for an eligible business, the loan results in a new eligible business, an expansion of an eligible business, or a new process, product, or service by an eligible business.

AB270,32,17 (i) If the loan is for an eligible project of a commercial entity, the loan results in the creation or expansion of business for the commercial entity.

AB270,32,20 (j) The borrower does not meet the participating lender's minimum standards of creditworthiness to receive the loan in the normal course of the participating lender's business.

AB270,32,23 (k) The participating lender considers the borrower's assets, cash flow, and managerial ability sufficient to preclude voluntary or involuntary liquidation for the loan term granted by the participating lender.

AB270,32,25 (L) The participating lender agrees to the percentage of guarantee established for the loan by the authority.

AB270,33,10 (m) If the eligible business that is financed by the loan is owned by an individual, or if the eligible project that is financed by the loan is for a plant, equipment, property, or facilities owned by an individual, the individual's name does not appear, and if the person is a corporation, no shareholder's name appears, and, if the person is a partnership, no partner's name appears, on the statewide support lien docket under s. 49.854 (2) (b) or, if the name of the individual, a shareholder, or a partner appears on that docket, the individual, shareholder, or partner provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

AB270,33,13 (3) Extension. A participating lender may extend the term of a guaranteed loan until no later than June 30 of the calendar year following the calendar year in which the participating lender granted the loan.

AB270,33,15 (4) Refinancing. (a) Except as provided in par. (b), proceeds of a guaranteed loan may be used to refinance a guaranteed loan no more than one time.

AB270,33,18 (b) The proceeds of a guaranteed loan may be used to refinance a guaranteed loan that has been refinanced one time if at least 60 percent of the principal amount of the refinanced guaranteed loan has been repaid.

AB270,33,24 (5) Guarantee. The authority may guarantee repayment of no more than 90 percent of the principal of a guaranteed loan. The authority shall establish the percentage of the unpaid principal of a guaranteed loan that will be guaranteed, using the procedures described in the guarantee agreement under s. 235.16 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for guaranteed loans on an individual basis.

AB270,34,6 (6) Origination fees. The authority shall charge a guarantee origination fee on every guaranteed loan. The amount of the fee shall be a percentage, determined by the authority, of each loan's guaranteed principal. The participating lender shall collect the fee and remit it to the authority. The authority shall deposit all fees received under this subsection in the Wisconsin clean and renewable energy reserve fund to be used to guarantee loans under this section.

AB270,34,11 235.16 Wisconsin clean and renewable energy reserve fund. (1) Establishment of fund. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans under programs established under sub. (2) (a), a Wisconsin clean and renewable energy reserve fund, consisting of all of the following:

AB270,34,13 (a) From the appropriation under s. 20.498 (1) (a), any amount the authority determines to deposit into the fund.

AB270,34,14 (b) Any income from investment of moneys in the fund by the authority.

AB270,34,15 (c) Fees collected under s. 235.15 (6).

AB270,34,17 (d) Moneys received by the authority for the fund from any source other than those specified in pars. (a) to (c).

AB270,34,20 (2) Loan programs. (a) The authority may enter into a guarantee agreement with a lender to establish a loan program guaranteed by the Wisconsin clean and renewable energy reserve fund. The authority may determine all of the following:

AB270,34,21 1. The form of such an agreement.

AB270,34,23 2. Any conditions upon which the authority may refuse to enter into such an agreement.

AB270,34,25 3. Any procedures required to carry out such an agreement, including default procedures and procedures for determining the guaranteed percentage of each loan.

AB270,35,2 (b) The authority may not use any moneys other than those in the Wisconsin clean and renewable energy reserve fund for programs established under par. (a).

AB270,35,6 (c) The authority may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of a program established under par. (a), to advise the authority about lending requirements and issues related to a program or programs established under par. (a).

AB270,35,10 (3) Loan guarantees; increases or decreases. (a) Except as provided in par. (b), the total principal amount or total outstanding guaranteed principal amount of all loans that the authority may guarantee under all of the programs established under sub. (2) (a) may not exceed $25,000,000.

AB270,35,21 (b) The authority may request the joint committee on finance to take action under s. 13.10 to permit the authority to increase or decrease the total principal amount or total outstanding guaranteed principal amount of loans that the authority may guarantee under all of the programs established under sub. (2) (a), and the joint committee on finance may take that action. Included with its request, the authority shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under all of the programs established under sub. (2) (a) and the balance remaining in the Wisconsin clean and renewable energy reserve fund on that date after deducting those amounts, if the increase or decrease is approved, with those amounts and the balance remaining, if the increase or decrease is not approved.

AB270,35,25 (4) Balance transfer. (a) Annually on June 30, until no balance remains, the authority shall transfer to the general fund any balance remaining in the Wisconsin clean and renewable energy reserve fund on that date, after deducting an amount sufficient for all of the following:

AB270,36,2 1. To pay all outstanding claims under the programs established under sub. (2) (a).

AB270,36,6 2. To fund guarantees under all of the programs established under sub. (2) (a) at a ratio of $1 of reserve funding to $4.50 of total outstanding principal and outstanding guaranteed principal that the authority may guarantee under all of the programs.

AB270,36,9 (b) Annually on August 31, the executive director of the authority shall provide to the secretary of administration and the joint committee on finance a signed statement that includes all of the following information:

AB270,36,11 1. The amounts on that date that are required to pay outstanding claims and to fund guarantees under the programs established under sub. (2) (a).

AB270,36,12 2. An explanation of how the amounts under subd. 1. were determined.

AB270,36,15 3. The amount of the balance, if any, that remains in the Wisconsin clean and renewable energy reserve fund after deducting the amounts under subd. 1. and the amount that will be transferred to the general fund under par. (a).

AB270,36,17 4. A projection of what the amount under subds. 1. and 3. will be on June 30 in each of the next 2 years.

AB270,36,21 (5) Limitation on loan guarantees. The authority shall regularly monitor the cash balance in the Wisconsin clean and renewable energy reserve fund. The authority shall ensure that the cash balance in the fund is sufficient for the purposes specified in sub. (4) (a) 1. and 2.

AB270,37,2 (6) Annual report. On or before November 1 annually, the authority shall submit to the chief clerk of each house of the legislature for distribution under s. 13.172 (2) and to the joint committee on finance a report on the number and total dollar amount of guaranteed loans under the programs established under sub. (2) (a), the default rate on the loans, and any other information on the programs that the authority determines is significant.

AB270,37,6 (7) Moral obligation. Recognizing its moral obligation, the legislature expresses its expectation that, if called upon to do so, it will make an appropriation to meet all demands for funds guaranteed by the Wisconsin clean and renewable energy reserve fund.

AB270,37,15 235.17 Grant program. The authority may make grants for eligible projects or grants to eligible businesses or to persons engaged in the commercialization of biological fuel, biological power, or biological products. The authority shall adopt guidelines for making grants under this section. The guidelines shall provide for a committee to make determinations regarding grant recipients and amounts. The committee shall consist of the secretary of agriculture, trade and consumer protection, the secretary of natural resources, and the chief executive officer of the Wisconsin Economic Development Corporation. The guidelines may also allow the committee to make grants on behalf of the authority.

AB270,37,18 235.18 Additional powers. The authority may implement any of the following programs for the purpose of promoting eligible businesses or eligible projects in this state:

AB270,37,20 (1) A revolving loan fund program pursuant to which the authority makes loans to finance eligible businesses or eligible projects.

AB270,37,22 (2) An equity financing program to facilitate equity investments in renewable energy generation businesses owned and controlled by agricultural producers.

AB270,37,25 (3) A conservation trading program pursuant to which the authority acts as an intermediary in the aggregation and trading of environmental credits related to clean and renewable energy production.

AB270,38,3 (4) A program for providing technical assistance and business services to eligible businesses and community-based projects for reducing energy consumption, improving energy efficiency, or promoting the use of renewable resources.

AB270,38,5 (5) A program for the authority to obtain licenses and royalties on technologies developed with the assistance of the authority.

AB270,38,7 (6) The acceptance of gifts and grants to carry out any of the powers of the authority.

AB270,38,11 235.19 Repayment to general fund. The authority shall repay the amounts appropriated under s. 20.498 (1) (a) to the general fund from that portion of the authority's surplus, if any, as is determined pursuant to agreement between the authority and the secretary of administration.

AB270,50 Section 50. 238.10 (1) of the statutes is amended to read:

AB270,38,19 238.10 (1) Allocation. The corporation shall establish under 26 USC 146 and administer a system for the allocation of the volume cap on the issuance of private activity bonds, as defined under 26 USC 141 (a), among all municipalities, as defined in s. 67.01 (5), and any corporation formed on behalf of those municipalities, and among this state, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Aerospace Authority, the Wisconsin Renewable Energy Development Authority, and the Wisconsin Housing and Economic Development Authority.