AB576: Bill Text

AB576, s. 7 Section 7. 234.51 (2) (d) of the statutes is created to read:

AB576,5,13 234.51 (2) (d) To make the transfer under 2001 Wisconsin Act .... (this act), section 17 (1), to the Wisconsin development reserve fund under s. 234.93.

AB576, s. 8 Section 8. 234.51 (2) (d) of the statutes, as created by 2001 Wisconsin Act .... (this act), is repealed.

AB576, s. 9 Section 9. 234.80 of the statutes is created to read:

AB576,5,19 234.80 Airline loan guarantees. (1) Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee a loan under this section if all of the following apply:

AB576,5,20 (a) The borrower qualifies as an eligible borrower under sub. (2).

AB576,5,21 (b) The loan qualifies as an eligible loan under sub. (3).

AB576,5,22 (c) The lender enters into an agreement under s. 234.93 (2) (a).

AB576,5,23 (2) Eligible borrowers. Any of the following qualifies as an eligible borrower:

AB576,5,25 (a) A person that is engaged in the business of transporting persons in aircraft, for hire, on regularly scheduled flights and that is headquartered in this state.

AB576,6,2 (b) A person that is engaged in the business of delivering personal property or packages in aircraft and that is headquartered in this state.

AB576,6,4 (c) A person that is engaged in the business of operating aircraft for the benefit of agribusiness and that is headquartered in this state.

AB576,6,6 (3) Eligible loans. A loan is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 243.93 if all of the following apply:

AB576,6,8 (a) The borrower uses the loan proceeds for working capital or the purchase or improvement of land, buildings, machinery, equipment, or inventory.

AB576,6,10 (b) The interest rate on the loan, including any origination fees or other charges, is approved by the authority.

AB576,6,12 (c) The lender obtains a security interest in the physical plant, equipment, machinery, or other assets.

AB576,6,14 (d) The lender believes that it is reasonably likely that the borrower will be able to repay the loan in full with interest.

AB576,6,16 (e) The lender agrees to the percentage of guarantee established for the loan by the authority.

AB576,6,18 (f) The loan is closed no later than the first day of the 7th month beginning after the effective date of this paragraph .... [revisor inserts date].

AB576,6,24 (g) With respect to a borrower under sub. (2) (a), the total guaranteed principal amount of all loans to the borrower that are guaranteed under this section does not exceed $4,500,000, except that, after reviewing all applications for guarantees that are received by the authority, the authority may, in its discretion, guarantee a total guaranteed principal amount of up to the amount specified in sub. (4) (b) in loans to a borrower under this paragraph.

AB576,7,3 (h) With respect to a borrower under sub. (2) (b) or (c), the total guaranteed principal amount of all loans to the borrower that are guaranteed under this section does not exceed $100,000.

AB576,7,11 (4) Guarantee of collection. (a) Subject to par. (b), on or before the first day of the 7th month beginning after the effective date of this paragraph .... [revisor inserts date], the authority shall guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee under this section. The authority shall establish the percentage 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 percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.

AB576,7,13 (b) The total outstanding guaranteed principal amount of all loans that the authority may guarantee under par. (a) may not exceed $10,000,000.

AB576, s. 10 Section 10. 234.93 (1) (cr) of the statutes is created to read:

AB576,7,16 234.93 (1) (cr) Any moneys transferred under 2001 Wisconsin Act .... (this act), section 17 (1), from the housing rehabilitation loan program administration fund.

AB576, s. 11 Section 11. 234.93 (3) (a) of the statutes, as created by 2001 Wisconsin Act 16, is amended to read:

AB576,7,23 234.93 (3) (a) Except as provided in par. (b) and subject to s. 234.80 (4) (b), the total principal amount or total outstanding guaranteed principal amount of all loans that the authority may guarantee under the aggregate of the programs guaranteed by funds from the Wisconsin development reserve fund, excluding the program under s. 234.935, 1997 stats., may not exceed $49,500,000 $59,500,000.

AB576, s. 12 Section 12. 234.93 (3) (b) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB576,8,12 234.93 (3) (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 it may guarantee under the aggregate of the programs guaranteed by the Wisconsin development reserve fund, excluding the programs under s. 234.935, 1997 stats., and s. 234.80. 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 the aggregate of the programs guaranteed by funds from the Wisconsin development reserve fund, and the balance remaining in the Wisconsin development reserve fund on that date after deducting such amounts, if the increase or decrease is approved, with such amounts and the balance remaining, if the increase or decrease is not approved.

AB576, s. 13 Section 13. 234.93 (4) (a) 2. of the statutes is amended to read:

AB576,8,18 234.93 (4) (a) 2. To fund guarantees under all of the programs guaranteed by funds from the Wisconsin development reserve fund, except for the program programs under s. 234.935, 1997 stats., and s. 234.80, 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.

AB576, s. 14 Section 14. 234.93 (4) (a) 4. of the statutes is created to read:

AB576,8,22 234.93 (4) (a) 4. To fund guarantees under the program under s. 234.80 at a ratio of $1 of reserve funding to $1 of total outstanding guaranteed principal that the authority may guarantee under that program.

AB576, s. 15 Section 15. 234.93 (4m) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB576,9,4 234.93 (4m) Limitation on loan guarantees. The authority shall regularly monitor the cash balance in the Wisconsin development reserve fund. The authority shall ensure that the cash balance in the fund is sufficient for the purposes specified in sub. (4) (a) 1., 2., and 3 to 4.

AB576, s. 16 Section 16. 600.01 (1) (b) 8. of the statutes is amended to read:

AB576,9,9 600.01 (1) (b) 8. Guarantees of the Wisconsin Housing and Economic Development Authority under s. 234.68, 1995 stats., s. 234.69, 1995 stats., s. 234.765, 1995 stats., s. 234.82, 1995 stats., s. 234.87, 1995 stats., and ss. 234.67, 234.80, 234.83, 234.84, 234.90, 234.905, 234.907, and 234.91.

AB576, s. 17 Section 17 . Nonstatutory provisions.

AB576,9,13 (1) In fiscal year 2001-02, the Wisconsin Housing and Economic Development Authority shall transfer $1,750,000 from the housing rehabilitation loan program administration fund to the Wisconsin development reserve fund.

AB576, s. 18 Section 18. Effective dates. This act takes effect on the day after publication, except as follows:

AB576,9,17 (1) The repeal of section 20.490 (7) of the statutes and the amendment of section 20.143 (1) (c) (by Section 3 ) of the statutes take effect on July 1, 2003.

AB576,9,19 (2) The repeal of section 234.51 (2) (d) of the statutes takes effect on July 1, 2002.

AB576,9,20 (End)