The bill requires the Public Bank to develop and maintain a business plan that sets forth the Public Bank’s strategy for accomplishing its statutory directives through safe and sound operation. The bill specifies a process for developing the business plan that includes input from the public. The business plan must include the method of providing security or insurance for the public deposits that the Public Bank receives. The Public Bank must make the business plan available to the public, and the business plan must be updated at least once every four years. In developing the business plan and in conducting its operations, the Public Bank must give priority to the following considerations:

1. Supporting eligible recipients subject to the historic and current economic inequities experienced by communities in underserved neighborhoods, as well as eligible recipients working to remedy those inequities.

2. Supporting eligible recipients subject to the historic and current economic inequities experienced by women throughout the state.

3. Supporting rural business and farming concerns.

4. Supporting businesses with compensation structures that provide a livable wage or demonstrate a commitment to equitable pay.

5. Supporting entities that address the impacts of climate change and the reduction of greenhouse gases.

6. Funding the need of municipalities to update and build safe and sustainable infrastructure.

7. Supporting the operation of local governmental units, nonprofit organizations, credit unions, local community banks, community development authorities, redevelopment authorities, housing authorities, community development corporations, and state-chartered financial institutions, including by complementing or partnering rather than competing with these entities to strengthen them and to expand affordable financing in the state.

8. Seeking participation loan options with the entities identified in 7., when appropriate, rather than originating or servicing the loan itself.

9. Promoting equitable distribution of the Public Bank’s resources across the state, including ensuring that rural areas are given full and fair consideration.

The bill requires the Public Bank’s CEO to implement the business plan and manage the Public Bank consistently with the business plan. The Public Bank must conduct its operations in compliance with the business plan, and the Public Bank’s governing board must monitor the Public Bank’s compliance. The business plan may only be overridden under certain emergency circumstances. As part of its examination of the Public Bank as a state-chartered bank, the Division of Banking must assess the Public Bank’s compliance with the business plan, and this assessment is available to the public six months after the examination.

Numerous provisions of current law treat state-created authorities similar to state agencies for certain purposes. Although the Public Bank is not a state agency, the bill treats the Public Bank similar to a state agency in the following respects, among others: 1) it is generally subject to the open records and open meetings laws, although certain information must be held confidential; 2) it is subject to auditing by the Legislative Audit Bureau; 3) its CEO and members of the governing board are subject to certain provisions of the state code of ethics; 4) its employees may participate in the system for state retirement benefits and health insurance coverage; and 5) it is exempt from sales and use taxes, property taxes, and income taxes. Under the bill, the Public Bank is also subject to certain conflict-of-interest restrictions, including that it may not transact business with its board members or its officers or their immediate family members.

The bill requires the Public Bank to submit an annual report to the governor and the legislature that includes specified information, including audited financial statements, a description of the benefits of the Public Bank’s activities to the state, and certain compensation information.

The bill also creates an 18-member Board of Advisors, a state agency attached to the Department of Financial Institutions, that reviews the Public Bank’s activities. The Board of Advisors must hold public meetings and maintain a website that contains a comments portal that allows the public to comment on the activities and future initiatives of the Public Bank. The Board of Advisors also communicates to the Public Bank policy recommendations and concerns regarding the Public Bank. The Public Bank must pay from its operating budget expenses incurred by the Board of Advisors. The Public Bank must keep the Board of Advisors informed of the Public Bank’s operations, and the Public Bank and Board of Advisors must hold an annual joint meeting.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

SB1106,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB1106,1 Section 1. 13.172 (1) of the statutes is amended to read:

SB1106,,6 13.172 (1) In this section, “agency” means an 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, that is entitled to expend moneys appropriated by law, including the legislature and the courts, and any authority created in subch. II of ch. 114 or in ch. 231, 233, 234, 238, 239, or 279.

SB1106,2 Section 2. 13.48 (13) (a) of the statutes is amended to read:

SB1106,,8 13.48 (13) (a) Except as provided in par. (b) or (c), every building, structure or facility that is constructed for the benefit of or use of the state, any state agency, board, commission or department, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Public Bank of Wisconsin, the Wisconsin Economic Development Corporation, or any local professional baseball park district created under subch. III of ch. 229 if the construction is undertaken by the department of administration on behalf of the district, shall be in compliance with all applicable state laws, rules, codes and regulations but the construction is not subject to the ordinances or regulations of the municipality in which the construction takes place except zoning, including without limitation because of enumeration ordinances or regulations relating to materials used, permits, supervision of construction or installation, payment of permit fees, or other restrictions.

SB1106,3 Section 3. 13.62 (2) of the statutes is amended to read:

SB1106,,10 13.62 (2) “Agency” means any board, commission, department, office, society, institution of higher education, council, or committee in the state government, or any authority created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237, 238, 239, or 279, except that the term does not include a council or committee of the legislature.

SB1106,4 Section 4. 13.94 (1) (dt) of the statutes is created to read:

SB1106,,12 13.94 (1) (dt) Biennially, beginning in 2025, conduct a financial audit of the Public Bank of Wisconsin and a program evaluation audit of the programs administered by the Public Bank of Wisconsin under ch. 239. The legislative audit bureau shall file a copy of each audit report under this paragraph with the distributees specified in par. (b).

SB1106,5 Section 5. 13.94 (1s) (c) 11. of the statutes is created to read:

SB1106,,14 13.94 (1s) (c) 11. The Public Bank of Wisconsin for the cost of the audit required to be performed under sub. (1) (dt).

SB1106,6 Section 6. 13.94 (4) (a) 1. of the statutes is amended to read:

SB1106,,16 13.94 (4) (a) 1. Every state department, board, examining board, affiliated credentialing board, commission, independent agency, council or office in the executive branch of state government; all bodies created by the legislature in the legislative or judicial branch of state government; any public body corporate and politic created by the legislature including specifically the Fox River Navigational System Authority, the Lower Fox River Remediation Authority, the Wisconsin Aerospace Authority, the Public Bank of Wisconsin, the Wisconsin Economic Development Corporation, a professional baseball park district, a local professional football stadium district, a local cultural arts district, and a long-term care district under s. 46.2895; every Wisconsin works agency under subch. III of ch. 49; every provider of medical assistance under subch. IV of ch. 49; technical college district boards; every county department under s. 51.42 or 51.437; every nonprofit corporation or cooperative or unincorporated cooperative association to which moneys are specifically appropriated by state law; and every corporation, institution, association or other organization which receives more than 50 percent of its annual budget from appropriations made by state law, including subgrantee or subcontractor recipients of such funds.