SB45: Bill Text

SB45,1107,20 234.52 (2) Subject to agreements with bondholders, the authority shall use moneys in the fund solely for transfer to the housing rehabilitation loan program bond redemption fund in amounts equal to losses on housing rehabilitation loans owned by that fund which are not made good by federal insurance or guarantee payments, and solely for the purposes described in s. 234.55 (2) (a). Any balance remaining after payment or due provision for payment of all outstanding bonds issued under the authority of s. 234.50 shall be transferred to the housing rehabilitation loan program administration fund only for the purpose of deposit in the state general fund.

SB45, s. 2374 Section 2374. 234.55 (3) of the statutes is amended to read:

SB45,1107,24 234.55 (3) Any balance remaining after satisfaction of all obligations under sub. (2) shall be transferred to the housing rehabilitation loan program administration fund only for the purpose of deposit in the state general fund.

SB45, s. 2375 Section 2375. 234.59 (3) (c) of the statutes is amended to read:

SB45,1108,9 234.59 (3) (c) The authority shall notify an eligible lender if it receives a certification under s. 49.855 (7) that a person is delinquent in child support or maintenance payments or owes past support, medical expenses or birth expenses a person's name appears on the statewide support lien docket under s. 49.854 (2) (b). An eligible lender may not make a loan to an applicant if it receives notification under this paragraph concerning the applicant, unless the applicant provides to the lender 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).

SB45, s. 2376 Section 2376. 234.64 of the statutes is created to read:

SB45,1108,11 234.64 Biotechnology development finance company. (1) In this section:

SB45,1108,12 (a) "Biotechnology" means technology related to life sciences.

SB45,1108,13 (b) "Capital participation instrument" means all of the following:

SB45,1108,14 1. Any of the following or an option or other right to acquire any of the following:

SB45,1108,15 a. Common or preferred capital stock.

SB45,1108,16 b. Convertible securities.

SB45,1108,17 c. Evidences of long-term or short-term indebtedness.

SB45,1108,18 d. Warrants.

SB45,1108,19 e. Subscriptions.

SB45,1108,20 f. Partnership or membership interests.

SB45,1108,22 2. Royalties or other lawful derivations of a capital participation instrument listed under subd. 1.

SB45,1109,4 (c) "Cost of a project" means costs associated with the design, planning and implementation of a project that, in accordance with sound business and financial practices, are appropriate charges to the project. The costs may include the costs of planning and design, options to buy land, feasibility or other studies, equipment, seed money, construction, working capital and any other costs determined by the biotechnology development finance company to be necessary to the purposes of this section.

SB45,1109,6 (d) "Project" means commercial, industrial or other economic activity that is undertaken by a biotechnology company in this state.

SB45,1109,9 (2) (a) The authority may organize and maintain a biotechnology development finance company as a nonstock, nonprofit corporation under ch. 181 for the exclusive purpose of investing in new or existing biotechnology companies in this state.

SB45,1109,13 (b) Subject to par. (c), the biotechnology development finance company may purchase a capital participation instrument of a project. The biotechnology development finance company shall ensure that all of the following apply with respect to a project before any investment is made in the project:

SB45,1109,15 1. The biotechnology company has certified that the project plans conform to all applicable environmental, zoning, building, planning or sanitation laws.

SB45,1109,17 2. There is a reasonable expectation that the biotechnology company will be successful.

SB45,1109,18 3. Private industry has not provided sufficient capital required for the project.

SB45,1109,22 4. The investment is necessary to the successful completion of the proposed project because other investment in the project is unavailable in the traditional capital markets, or because capital has been offered on terms that would preclude the success of the project.

SB45,1110,2 5. Provision has been made by contract for adequate reporting of financial data by the project to the biotechnology development finance company. Those provisions may include a requirement for an annual or other periodic audit of the project's financial records.

SB45,1110,4 6. The proceeds of the purchase will be used solely in connection with the costs of the project.

SB45,1110,5 7. The biotechnology company is able to manage its project responsibilities.

SB45,1110,8 (c) 1. The biotechnology development finance company may not own more than 49% of the voting stock or other interest in any enterprise as a result of a purchase under par. (b).

SB45,1110,10 2. The total investment by the biotechnology development finance company in any one biotechnology company may not exceed $200,000.

SB45,1110,12 (d) The findings made by the biotechnology development finance company with respect to whether a project meets the conditions under par. (b) 1. to 7. are conclusive.

SB45,1110,21 (3) The authority shall enter into a contract with the biotechnology development finance company. The contract shall provide that the authority may make use of the services of the biotechnology development finance company and that the authority shall advise, assist and provide administrative services to the biotechnology development finance company. The authority shall determine the type and scope of any administrative services provided by the authority to the biotechnology development finance company. The authority may assign employes or contract with private or state agencies to perform the administrative services. The biotechnology development finance company may not engage in political activities.

SB45,1110,23 (4) (a) The board of directors of the biotechnology development finance company shall consist of all of the following members:

SB45,1110,24 1. The executive director of the authority, or his or her designee.

SB45,1110,25 2. The secretary of commerce, or his or her designee.

SB45,1111,1 3. The secretary of administration, or his or her designee.

SB45,1111,2 4. The executive director of the investment board, or his or her designee.

SB45,1111,3 5. The president of the University of Wisconsin System, or his or her designee.

SB45,1111,4 6. The president of Forward Wisconsin, Inc., or his or her designee.

SB45,1111,5 7. A representative of the state's biotechnology research community.

SB45,1111,6 8. A representative of the state's biotechnology industry.

SB45,1111,7 9. A representative of the state's venture capital industry.

SB45,1111,11 (b) The members under par. (a) 7. to 9. shall serve 5-year terms and the initial members under par. (a) 7. to 9. shall be appointed by the governor. The biotechnology development finance company, in its bylaws, shall specify the method for electing new members under par. (a) 7. to 9. and for filling vacancies.

SB45,1111,14 (5) Annually, the biotechnology development finance company shall provide a report on its activities to the appropriate standing committees of each house of the legislature in the manner provided under s. 13.172 (3) and to the governor.

SB45,1111,21 (6) The assets transferred to, and the assets and liabilities of, the biotechnology development finance company shall be separate from all other assets and liabilities of the state, of all political subdivisions of the state and of the authority. Neither the state, any political subdivision of the state nor the authority guarantees any obligation of or has any obligation to the biotechnology development finance company. Neither the state, any political subdivision of the state nor the authority is liable for any debt or liability of the biotechnology development finance company.

SB45, s. 2377 Section 2377. 234.65 (3) (f) of the statutes is amended to read:

SB45,1112,5 234.65 (3) (f) The authority has not received a certification under s. 49.855 (7) that the person receiving the loan is delinquent in child support or maintenance payments or owes past support, medical expenses or birth expenses name of the person receiving the loan does not appear on the statewide support lien docket under s. 49.854 (2) (b). The condition under this paragraph is met for a person whose name does appear if the person 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).

SB45, s. 2378 Section 2378. 234.65 (3m) of the statutes is amended to read:

SB45,1112,9 234.65 (3m) An economic development loan may not be made unless the department of commerce complies with sub. (1m) and certifies that each loan complies with sub. (3).

SB45, s. 2379 Section 2379. 234.65 (5) (intro.) of the statutes is amended to read:

SB45,1112,15 234.65 (5) (intro.) On or before July 1, 1985 2000, and every July 1 thereafter, the department of commerce authority shall submit to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3), a report which shall address the effects of lending under this section in the following areas:

SB45, s. 2380 Section 2380. 234.83 (1) (intro.) of the statutes is amended to read:

SB45,1112,19 234.83 (1) Guarantee requirements for small businesses. (intro.) The authority may use money from the Wisconsin development reserve fund to guarantee a loan under this section sub. (4) (a) if all of the following apply:

SB45, s. 2381 Section 2381. 234.83 (1) (a) of the statutes is amended to read:

SB45,1112,22 234.83 (1) (a) The borrower qualifies as an eligible borrower under sub. (2) (a) or (b).

SB45, s. 2382 Section 2382. 234.83 (1m) of the statutes is created to read:

SB45,1113,3 234.83 (1m) Guarantee requirements for small businesses affected by gaming. The authority may use money from the Wisconsin development reserve fund to guarantee a loan under sub. (4) (am) if all of the following apply:

SB45,1113,4 (a) The borrower qualifies as an eligible borrower under sub. (2) (c).

SB45,1113,5 (b) The loan qualifies as an eligible loan under sub. (3).

SB45,1113,6 (c) The lender enters into an agreement under s. 234.93 (2) (a).

SB45, s. 2383 Section 2383. 234.83 (2) (a) 3. of the statutes is amended to read:

SB45,1113,15 234.83 (2) (a) 3. The authority has not received a certification under s. 49.855 (7) that the owner of the business is delinquent in making child support or maintenance payments name of the owner of the business does not appear on the statewide support lien docket under s. 49.854 (2) (b). The condition under this subdivision is met for an owner whose name does appear if the owner of the business 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).

SB45, s. 2384 Section 2384. 234.83 (2) (c) of the statutes is created to read:

SB45,1113,20 234.83 (2) (c) A business to which the conditions under par. (a) 1., 2. and 3. apply and that is located in a county in this state, or in a county in this state that is adjacent to a county in this state, in which is located a casino that is operated by a federally recognized American Indian tribe or band in this state.

SB45, s. 2385 Section 2385. 234.83 (4) (am) of the statutes is created to read:

SB45,1114,6 234.83 (4) (am) Subject to par. (b), the authority may guarantee repayment of an amount of the principal of any loan eligible for a guarantee under sub. (1m). The amount that may be guaranteed may not exceed 100% of the principal of the loan or $200,000, whichever is less. The authority shall establish the amount of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under s. 234.93 (2) (a). The authority may establish a single amount for all guaranteed loans that do not exceed $200,000 and a single amount for all guaranteed loans that exceed $200,000 or establish on an individual basis different amounts for eligible loans that do not exceed $200,000 and different amounts for eligible loans that exceed $200,000.

SB45, s. 2386 Section 2386. 234.83 (4) (b) of the statutes is amended to read:

SB45,1114,10 234.83 (4) (b) Except as provided in s. 234.93 (3), the total outstanding guaranteed principal amount of all loans that the authority may guarantee under par. (a) this section may not exceed $9,900,000 $21,150,000.

SB45, s. 2387 Section 2387. 234.83 (5) of the statutes is created to read:

SB45,1114,16 234.83 (5) Interest subsidy for businesses affected by gaming. Annually, from the Wisconsin development reserve fund, the authority may pay a financial institution that makes a loan to a borrower under sub. (2) (c) that is guaranteed under sub. (4) (am) an amount equal to up to 3.5% of the outstanding balance of the loan.

SB45, s. 2388 Section 2388. 234.88 (3) (b) of the statutes is amended to read:

SB45,1114,20 234.88 (3) (b) Except as provided in s. 234.93 (3), the total outstanding principal amount of all guaranteed loans under par. (a) may not exceed $22,500,000 $11,250,000.

SB45, s. 2389 Section 2389. 234.90 (2) (b) of the statutes is amended to read:

SB45,1114,23 234.90 (2) (b) The total outstanding principal amount of all loans to the borrower that are guaranteed under this section will not exceed $20,000 $30,000.

SB45, s. 2390 Section 2390. 234.90 (3) (d) of the statutes is amended to read:

SB45,1115,8 234.90 (3) (d) The authority has not received a certification under s. 49.855 (7) that the farmer is delinquent in making child support or maintenance payments or owes past support, medical expenses or birth expenses farmer's name does not appear on the statewide support lien docket under s. 49.854 (2) (b). The condition under this paragraph is met for a farmer whose name does appear if the farmer 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).

SB45, s. 2391 Section 2391. 234.90 (3g) (c) of the statutes is amended to read:

SB45,1115,17 234.90 (3g) (c) The authority has not received a certification under s. 49.855 (7) that the farmer is delinquent in making child support or maintenance payments or owes past support, medical expenses or birth expenses farmer's name does not appear on the statewide support lien docket under s. 49.854 (2) (b). The condition under this paragraph is met for a farmer whose name does appear if the farmer 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).

SB45, s. 2392 Section 2392. 234.905 (3) (d) of the statutes is amended to read:

SB45,1116,2 234.905 (3) (d) The authority has not received a certification under s. 49.855 (7) that the farmer is delinquent in making child support or maintenance payments or owes past support, medical expenses or birth expenses farmer's name does not appear on the statewide support lien docket under s. 49.854 (2) (b). The condition under this paragraph is met for a farmer whose name does appear if the farmer 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).

SB45, s. 2393 Section 2393. 234.91 (2) (c) of the statutes is amended to read:

SB45,1116,7 234.91 (2) (c) The total outstanding guaranteed principal amount of all loans made to the borrower that are guaranteed under this section will not exceed $100,000 $200,000, or $50,000 $100,000 if any of the loans is affected by any other state or federal credit assistance program.

SB45, s. 2394 Section 2394. 234.93 (1) (cm) of the statutes is created to read:

SB45,1116,11 234.93 (1) (cm) Any moneys transferred under s. 234.51 (2) (b), or under 1999 Wisconsin Act .... (this act), section 9125 (1 ), from the housing rehabilitation loan program administration fund.

SB45, s. 2395 Section 2395. 234.93 (1) (f) of the statutes is created to read:

SB45,1116,15 234.93 (1) (f) To be used for guaranteeing loans under s. 234.83 (4) (am) and paying interest subsidies under s. 234.83 (5), moneys appropriated to the authority under s. 20.490 (5) (kp).

SB45, s. 2396 Section 2396. 234.93 (4) (a) 2. of the statutes is amended to read:

SB45,1116,21 234.93 (4) (a) 2. To fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund, except for the program under s. 234.935, 1997 stats., 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 those programs.

SB45, s. 2397 Section 2397. 234.93 (4) (a) 3. of the statutes is amended to read: