AB862,31,1211
(b) “Participating lender" means a lender that has entered into a guarantee
12agreement with the authority under s. 235.16 (2) (a).
AB862,31,16
13(2) Eligible loans. If the authority establishes a loan guarantee program
14under s. 235.16 (2) (a) with a participating lender, the authority may guarantee
15collection from the Wisconsin clean and renewable energy reserve fund for a loan to
16a borrower under the program if all of the following apply:
AB862,31,1717
(a) The loan is for financing one of the following:
AB862,31,1818
1. The capital, operating expenses, or both of an eligible business.
AB862,31,1919
2. Any expenses of an eligible project.
AB862,31,2220
(b) The total outstanding principal amounts of all loans to the borrower that
21are guaranteed under this section do not exceed an amount set annually by the
22authority that may not exceed $25,000,000.
AB862,31,2523
(c) The rate of interest on the loan, including any origination fees or other
24charges relating to the loan, does not exceed a rate determined by the authority after
25considering the conditions of the financial market.
AB862,32,2
1(d) The participating lender obtains a security interest in physical plant,
2equipment, machinery, or other assets.
AB862,32,53
(e) Unless waived by the authority, the borrower procures a business insurance
4policy that is approved by the authority and the proceeds of that policy are payable
5to the participating lender.
AB862,32,96
(f) Unless extended by the authority, the loan term does not extend beyond 10
7years after the date that the participating lender disburses the loan or, if the loan is
8for the acquisition of land or facilities, the loan term does not extend beyond 20 years
9after the date that the participating lender disburses the loan.
AB862,32,1210
(g) The proceeds of the loan are not applied to the outstanding balance of any
11other loan, except that, subject to sub. (4), the proceeds may be used to refinance a
12loan under this section.
AB862,32,1513
(h) If the loan is for an eligible business, the loan results in a new eligible
14business, an expansion of an eligible business, or a new process, product, or service
15by an eligible business.
AB862,32,1716
(i) If the loan is for an eligible project of a commercial entity, the loan results
17in the creation or expansion of business for the commercial entity.
AB862,32,2018
(j) The borrower does not meet the participating lender's minimum standards
19of creditworthiness to receive the loan in the normal course of the participating
20lender's business.
AB862,32,2321
(k) The participating lender considers the borrower's assets, cash flow, and
22managerial ability sufficient to preclude voluntary or involuntary liquidation for the
23loan term granted by the participating lender.
AB862,32,2524
(L) The participating lender agrees to the percentage of guarantee established
25for the loan by the authority.
AB862,33,10
1(m) If the eligible business that is financed by the loan is owned by an
2individual, or if the eligible project that is financed by the loan is for a plant,
3equipment, property, or facilities owned by an individual, the individual's name does
4not appear, and if the person is a corporation, no shareholder's name appears, and,
5if the person is a partnership, no partner's name appears, on the statewide support
6lien docket under s. 49.854 (2) (b) or, if the name of the individual, a shareholder, or
7a partner appears on that docket, the individual, shareholder, or partner provides to
8the authority a payment agreement that has been approved by the county child
9support agency under s. 59.53 (5) and that is consistent with rules promulgated
10under s. 49.858 (2) (a).
AB862,33,13
11(3) Extension. A participating lender may extend the term of a guaranteed
12loan until no later than June 30 of the calendar year following the calendar year in
13which the participating lender granted the loan.
AB862,33,15
14(4) Refinancing. (a) Except as provided in par. (b), proceeds of a guaranteed
15loan may be used to refinance a guaranteed loan no more than one time.
AB862,33,1816
(b) The proceeds of a guaranteed loan may be used to refinance a guaranteed
17loan that has been refinanced one time if at least 60 percent of the principal amount
18of the refinanced guaranteed loan has been repaid.
AB862,33,24
19(5) Guarantee. The authority may guarantee repayment of no more than 90
20percent of the principal of a guaranteed loan. The authority shall establish the
21percentage of the unpaid principal of a guaranteed loan that will be guaranteed,
22using the procedures described in the guarantee agreement under s. 235.16 (2) (a).
23The authority may establish a single percentage for all guaranteed loans or establish
24different percentages for guaranteed loans on an individual basis.
AB862,34,6
1(6) Origination fees. The authority shall charge a guarantee origination fee
2on every guaranteed loan. The amount of the fee shall be a percentage, determined
3by the authority, of each loan's guaranteed principal. The participating lender shall
4collect the fee and remit it to the authority. The authority shall deposit all fees
5received under this subsection in the Wisconsin clean and renewable energy reserve
6fund to be used to guarantee loans under this section.
AB862,34,11
7235.16 Wisconsin clean and renewable energy reserve fund. (1) 8Establishment of fund. There is established under the jurisdiction and control of
9the authority, for the purpose of providing funds for guaranteeing loans under
10programs established under sub. (2) (a), a Wisconsin clean and renewable energy
11reserve fund, consisting of all of the following:
AB862,34,1312
(a) From the appropriation under s. 20.498 (1) (a), any amount the authority
13determines to deposit into the fund.
AB862,34,1414
(b) Any income from investment of moneys in the fund by the authority.
AB862,34,1515
(c) Fees collected under s. 235.15 (6).
AB862,34,1716
(d) Moneys received by the authority for the fund from any source other than
17those specified in pars. (a) to (c).
AB862,34,20
18(2) Loan programs. (a) The authority may enter into a guarantee agreement
19with a lender to establish a loan program guaranteed by the Wisconsin clean and
20renewable energy reserve fund. The authority may determine all of the following:
AB862,34,2121
1. The form of such an agreement.
AB862,34,2322
2. Any conditions upon which the authority may refuse to enter into such an
23agreement.
AB862,34,2524
3. Any procedures required to carry out such an agreement, including default
25procedures and procedures for determining the guaranteed percentage of each loan.
AB862,35,2
1(b) The authority may not use any moneys other than those in the Wisconsin
2clean and renewable energy reserve fund for programs established under par. (a).
AB862,35,63
(c) The authority may establish an eligibility criteria review panel, consisting
4of experts in finance and in the subject area of a program established under par. (a),
5to advise the authority about lending requirements and issues related to a program
6or programs established under par. (a).
AB862,35,10
7(3) Loan guarantees; increases or decreases. (a) Except as provided in par.
8(b), the total principal amount or total outstanding guaranteed principal amount of
9all loans that the authority may guarantee under all of the programs established
10under sub. (2) (a) may not exceed $25,000,000.
AB862,35,2111
(b) The authority may request the joint committee on finance to take action
12under s. 13.10 to permit the authority to increase or decrease the total principal
13amount or total outstanding guaranteed principal amount of loans that the authority
14may guarantee under all of the programs established under sub. (2) (a), and the joint
15committee on finance may take that action. Included with its request, the authority
16shall provide a projection, for the next June 30, that compares the amounts required
17on that date to pay outstanding claims and to fund guarantees under all of the
18programs established under sub. (2) (a), and the balance remaining in the Wisconsin
19clean and renewable energy reserve fund on that date after deducting those
20amounts, if the increase or decrease is approved, with those amounts and the balance
21remaining, if the increase or decrease is not approved.
AB862,35,25
22(4) Balance transfer. (a) Annually on June 30, until no balance remains, the
23authority shall transfer to the general fund any balance remaining in the Wisconsin
24clean and renewable energy reserve fund on that date, after deducting an amount
25sufficient for all of the following:
AB862,36,2
11. To pay all outstanding claims under the programs established under sub. (2)
2(a).
AB862,36,63
2. To fund guarantees under all of the programs established under sub. (2) (a)
4at a ratio of $1 of reserve funding to $4.50 of total outstanding principal and
5outstanding guaranteed principal that the authority may guarantee under all of the
6programs.
AB862,36,97
(b) Annually on August 31, the executive director of the authority shall provide
8to the secretary of administration and the joint committee on finance a signed
9statement that includes all of the following information:
AB862,36,1110
1. The amounts on that date that are required to pay outstanding claims and
11to fund guarantees under the programs established under sub. (2) (a).
AB862,36,1212
2. An explanation of how the amounts under subd. 1. were determined.
AB862,36,1513
3. The amount of the balance, if any, that remains in the Wisconsin clean and
14renewable energy reserve fund after deducting the amounts under subd. 1. and the
15amount that will be transferred to the general fund under par. (a).
AB862,36,1716
4. A projection of what the amount under subds. 1. and 3. will be on June 30
17in each of the next 2 years.
AB862,36,21
18(5) Limitation on loan guarantees. The authority shall regularly monitor the
19cash balance in the Wisconsin clean and renewable energy reserve fund. The
20authority shall ensure that the cash balance in the fund is sufficient for the purposes
21specified in sub. (4) (a) 1. and 2.
AB862,37,2
22(6) Annual report. On or before November 1 annually, the authority shall
23submit to the chief clerk of each house of the legislature for distribution under s.
2413.172 (2) and to the joint committee on finance a report on the number and total
25dollar amount of guaranteed loans under the programs established under sub. (2) (a),
1the default rate on the loans, and any other information on the programs that the
2authority determines is significant.
AB862,37,6
3(7) Moral obligation. Recognizing its moral obligation, the legislature
4expresses its expectation that, if called upon to do so, it will make an appropriation
5to meet all demands for funds guaranteed by the Wisconsin clean and renewable
6energy reserve fund.
AB862,37,15
7235.17 Grant program. The authority may make grants for eligible projects
8or grants to eligible businesses or to persons engaged in the commercialization of
9biological fuel, biological power, or biological products. The authority shall adopt
10guidelines for making grants under this section. The guidelines shall provide for a
11committee to make determinations regarding grant recipients and amounts. The
12committee shall consist of the secretary of agriculture, trade and consumer
13protection, the secretary of natural resources, and the chief executive officer of the
14Wisconsin Economic Development Corporation. The guidelines may also allow the
15committee to make grants on behalf of the authority.
AB862,37,18
16235.18 Additional powers. The authority may implement any of the
17following programs for the purpose of promoting eligible businesses or eligible
18projects in this state:
AB862,37,20
19(1) A revolving loan fund program pursuant to which the authority makes
20loans to finance eligible businesses or eligible projects.
AB862,37,22
21(2) An equity financing program to facilitate equity investments in renewable
22energy generation businesses owned and controlled by agricultural producers.
AB862,37,25
23(3) A conservation trading program pursuant to which the authority acts as an
24intermediary in the aggregation and trading of environmental credits related to
25clean and renewable energy production.
AB862,38,3
1(4) A program of technical assistance and business services to eligible
2businesses and community-based projects for reducing energy consumption,
3improving energy efficiency, or promoting the use of renewable resources.
AB862,38,5
4(5) A program for the authority to obtain licenses and royalties on technologies
5developed with the assistance of the authority.
AB862,38,7
6(6) The acceptance of gifts and grants to carry out any of the powers of the
7authority.
AB862,38,11
8235.19 Repayment to general fund. The authority shall repay the amounts
9appropriated under s. 20.498 (1) (a) to the general fund from that portion of the
10authority's surplus, if any, as is determined pursuant to agreement between the
11authority and the secretary of administration.
AB862,50
12Section
50. 238.10 (1) of the statutes is amended to read:
AB862,38,1913
238.10
(1) Allocation. The corporation shall establish under
26 USC 146 and
14administer a system for the allocation of the volume cap on the issuance of private
15activity bonds, as defined under
26 USC 141 (a), among all municipalities, as defined
16in s. 67.01 (5), and any corporation formed on behalf of those municipalities, and
17among this state, the Wisconsin Health and Educational Facilities Authority, the
18Wisconsin Aerospace Authority,
the Wisconsin Renewable Energy Development
19Authority, and the Wisconsin Housing and Economic Development Authority.
AB862,51
20Section
51. 281.75 (4) (b) 3. of the statutes is amended to read:
AB862,38,2221
281.75
(4) (b) 3. An authority created under subch. II of ch. 114 or ch. 231, 233,
22234,
235, 237, or 238.
AB862,52
23Section
52. 285.59 (1) (b) of the statutes is amended to read:
AB862,39,824
285.59
(1) (b) “State agency" means any office, department, agency, institution
25of higher education, association, society, or other body in state government created
1or authorized to be created by the constitution or any law which is entitled to expend
2moneys appropriated by law, including the legislature and the courts, the Wisconsin
3Housing and Economic Development Authority, the Bradley Center Sports and
4Entertainment Corporation, the University of Wisconsin Hospitals and Clinics
5Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace
6Authority,
the Wisconsin Renewable Energy Development Authority, the Wisconsin
7Economic Development Corporation, and the Wisconsin Health and Educational
8Facilities Authority.
AB862,53
9Section
53. 600.01 (1) (b) 8m. of the statutes is created to read:
AB862,39,1110
600.01
(1) (b) 8m. Guarantees of the Wisconsin Renewable Energy
11Development Authority under s. 235.15.
AB862,54
12Section
54. 706.11 (1) (c) 2. of the statutes is amended to read:
AB862,39,1613
706.11
(1) (c) 2. The Wisconsin Health and Educational Facilities Authority
14created under ch. 231, the Wisconsin Housing and Economic Development Authority
15created under ch. 234,
the Wisconsin Renewable Energy Development Authority
16created under ch. 235, or any other authority created by state law.
AB862,55
17Section
55.
Nonstatutory provisions.
AB862,39,2118
(1)
Terms of initial members of board. Notwithstanding the length of terms
19specified for the members of the board of directors of the Wisconsin Renewable
20Energy Development Authority under section 235.02 (1) of the statutes, the initial
21members of the board shall be appointed for the following terms:
AB862,39,2322
(a) One member appointed under section 235.02 (1) (a) 1. of the statutes for a
23term expiring on July 1, 2021.
AB862,39,2524
(b) One member appointed under section 235.02 (1) (a) 1. of the statutes for a
25term expiring on July 1, 2022.
AB862,40,2
1(c) Two members appointed under section 235.02 (1) (a) 1. of the statutes for
2terms expiring on July 1, 2023.
AB862,40,43
(d) One member appointed under section 235.02 (1) (a) 2. of the statutes for a
4term expiring on July 1, 2024.