AB862,24,11
10(3) An employee of the authority may be granted, by the executive director, a
11leave of absence to participate in partisan political campaigning.
AB862,24,14
12(4) Persons on leave of absence under sub. (2) or (3) are not subject to the
13restrictions of sub. (1), except as they apply to the solicitation of assistance,
14subscription, or support from any other employee in the authority.
AB862,24,18
15235.05 Cooperation. To enhance the efficiency and effectiveness of the
16authority, the authority shall use staff and other resources of state agencies,
17including the University of Wisconsin System, and state agencies shall, to the extent
18possible given their staff and other resources, provide assistance to the authority.
AB862,24,21
19235.06 Issuance of bonds. (1) The authority may issue bonds for any
20corporate purpose. All bonds are negotiable for all purposes, notwithstanding their
21payment from a limited source.
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22(2) The bonds of each issue shall be payable from sources specified in the bond
23resolution under which the bonds are issued.
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24(3) The authority may not issue bonds unless the issuance is first authorized
25by a bond resolution. Bonds shall bear the dates, mature at the times not exceeding
130 years from their dates of issue, bear interest at the rates, be payable at the times,
2be in the denominations, be in the form, carry the registration and conversion
3privileges, be executed in the manner, be payable in lawful money of the United
4States at the places, and be subject to the terms of redemption, that the bond
5resolution provides. The bonds shall be executed by the manual or facsimile
6signatures of the officers of the authority designated by the board. The bonds may
7be sold at public or private sale at the price, in the manner, and at the time
8determined by the board. Pending preparation of definitive bonds, the authority may
9issue interim receipts or certificates that the authority shall exchange for the
10definitive bonds.
AB862,25,13
11(4) Any bond resolution may contain provisions that shall be a part of the
12contract with the holders of the bonds that are authorized by the bond resolution,
13regarding any of the following:
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(a) Pledging or assigning specified assets or revenues of the authority.
AB862,25,1615
(b) Setting aside reserves or sinking funds, and the regulation, investment, and
16disposition of these funds.
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(c) Limitations on the purpose to which or the investments in which the
18proceeds of the sale of any issue of bonds may be applied.
AB862,25,2219
(d) Limitations on the issuance of additional bonds, the terms upon which
20additional bonds may be issued and secured, and the terms upon which additional
21bonds may rank on a parity with, or be subordinate or superior to, the bonds
22authorized by the bond resolution.
AB862,25,2323
(e) Funding, refunding, advance refunding, or purchasing outstanding bonds.
AB862,26,3
1(f) Procedures by which the terms of any contract with bondholders may be
2amended, the amount of bonds the holders of which must consent to the amendment,
3and the manner in which this consent may be given.
AB862,26,64
(g) Defining the acts or omissions to act that constitute a default in the duties
5of the authority to the bondholders, and providing the rights and remedies of the
6bondholders in the event of a default.
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(h) Other matters relating to the bonds that the board considers desirable.
AB862,26,11
8(5) Neither the members of the board nor any person executing the bonds is
9liable personally on the bonds or subject to any personal liability or accountability
10by reason of the issuance of the bonds, unless the personal liability or accountability
11is the result of willful misconduct.
AB862,26,20
12235.07 Bond security. The authority may secure any bonds issued under this
13chapter by a trust agreement, trust indenture, indenture of mortgage, or deed of
14trust by and between the authority and one or more corporate trustees. The bond
15resolution providing for the issuance of bonds so secured shall pledge some or all of
16the revenues to be received by the authority, and may contain provisions for
17protecting and enforcing the rights and remedies of the bondholders that are
18reasonable and proper and not in violation of law. A bond resolution may contain any
19other provisions that are determined by the board to be reasonable and proper for
20the security of the bondholders.
AB862,27,2
21235.08 Bonds not public debt.
(1) The state is not liable on bonds of the
22authority, and the bonds are not a debt of the state. Each bond of the authority shall
23contain a statement to this effect on the face of the bond. The issuance of bonds under
24this chapter does not, directly, indirectly, or contingently, obligate the state or any
25political subdivision of the state to levy any tax or to make any appropriation for
1payment of the bonds. Nothing in this section prevents the authority from pledging
2its full faith and credit to the payment of bonds issued under this chapter.
AB862,27,12
3(2) Nothing in this chapter authorizes the authority to create a debt of the state,
4and all bonds issued by the authority under this chapter are payable, and shall state
5that they are payable, solely from the funds pledged for their payment in accordance
6with the bond resolution authorizing their issuance or in any trust indenture or deed
7of trust executed as security for the bonds. The state is not liable for the payment
8of the principal of or interest on any bonds of the authority or for the performance
9of any pledge, mortgage, obligation, or agreement which may be undertaken by the
10authority. The breach of any pledge, mortgage, obligation, or agreement undertaken
11by the authority does not impose any pecuniary liability upon the state or any charge
12upon its general credit or against its taxing power.
AB862,27,19
13235.09 State pledge. The state pledges to and agrees with the holders of
14bonds, and persons that enter into contracts with the authority under this chapter,
15that the state will not limit or alter the rights vested in the authority by this chapter
16before the authority has fully met and discharged the bonds, and any interest due
17on the bonds, and has fully performed its contracts, unless adequate provision is
18made by law for the protection of the bondholders or those entering into contracts
19with the authority.
AB862,27,23
20235.10 Refunding bonds. (1) The authority may issue bonds to fund or
21refund any outstanding bond, including the payment of any redemption premium on
22the outstanding bond and any interest accrued or to accrue to the earliest or any
23subsequent date of redemption, purchase, or maturity.
AB862,28,3
24(2) The authority may apply the proceeds of any bond issued to fund or refund
25any outstanding bond to purchase, retire at maturity, or redeem any outstanding
1bond. The authority may, pending application, place the proceeds in escrow to be
2applied to the purchase, retirement at maturity, or redemption of any outstanding
3bond at any time.
AB862,28,6
4235.11 Limit on amount of outstanding bonds. The authority may not
5have outstanding at any one time bonds in an aggregate principal amount exceeding
6$500,000,000, excluding bonds issued to refund outstanding bonds.
AB862,28,17
7235.12 Annual reports. (1) The authority shall keep an accurate account of
8all of its activities and of all of its receipts and expenditures, and shall annually in
9January make a report of its activities, receipts, and expenditures to the governor
10and the chief clerk of each house of the legislature, for distribution to the legislature
11under s. 13.172 (2). The reports shall estimate the number of jobs created or
12maintained as a result of the authority's activities, as well as the fiscal impacts and
13savings resulting from those activities. The reporting of receipts and expenditures
14shall be in a form approved by the state auditor. The state auditor may investigate
15the affairs of the authority, may examine the properties and records of the authority,
16and may prescribe methods of accounting and the rendering of periodical reports in
17relation to activities undertaken by the authority.
AB862,28,23
18(2) The authority, annually on July 1, shall file with the department of
19administration and the joint legislative council a complete and current listing of all
20forms, reports, and papers required by the authority to be completed by any person,
21other than a governmental body, as a condition of obtaining the approval of the
22authority or for any other reason. The authority shall attach a blank copy of each
23such form, report, or paper to the listing.
AB862,29,2
24235.13 Confidentiality of certain records. The authority shall maintain
25the confidentiality of records or portions of records consisting of personal or financial
1information provided by a person seeking a loan, loan guarantee, or other financial
2assistance from the authority.
AB862,29,4
3235.14 Participation in loans.
(1) Definition. In this section, “eligible
4borrower" means a person to which all of the following apply:
AB862,29,65
(a) The person is an individual who resides in this state or a partnership or
6corporation that operates in this state.
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(b) The person demonstrates a need for a loan for one of the following:
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1. The capital, operating expenses, or both of an eligible business.
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2. Any expenses of an eligible project.
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(c) The person demonstrates an ability to repay the loan described in par. (b).
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(d) If the person is an individual, the individual's name does not appear, and
12if the person is a corporation, no shareholder's name appears, and, if the person is
13a partnership, no partner's name appears on the statewide support lien docket under
14s. 49.854 (2) (b) or, if the name of the individual, a shareholder, or a partner appears
15on that docket, the individual, shareholder, or partner provides to the authority a
16payment agreement that has been approved by the county child support agency
17under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2)
18(a).
AB862,29,1919
(e) The person satisfies any other requirements prescribed by the authority.
AB862,30,2
20(2) Participation agreement with lender. A lender seeking to make a loan in
21which the authority may participate under this section shall apply to the authority
22for approval. If the lender is approved, the lender and the authority shall enter into
23a participation agreement that shall provide for the contractual obligations of the
24lender and the authority with respect to any loan transaction in which the authority
1participates, the terms and conditions of loans in which the authority participates,
2and other matters related to the lender's involvement in loans under this section.
AB862,30,8
3(3) Participation in loans. (a)
In general. The authority may participate, to
4the extent provided in this subsection, in a loan to an eligible borrower made by a
5lender with whom the authority enters into a participation agreement under sub. (2).
6The authority may impose repayment or other terms for its portion of the loan that
7are different from the lender's loan terms. The authority shall ensure that it obtains
8a security interest for the loan.
AB862,30,109
(b)
Loans. The authority may participate in a loan under par. (a) if all of the
10following apply:
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1. The collateral for the loan includes physical plant, equipment, machinery,
12or other assets.
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2. The loan does not exceed 80 percent of the appraised value of the collateral
14for the loan.
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3. The term of the loan does not exceed 10 years or, for the acquisition of land
16or facilities, does not exceed 20 years.
AB862,30,1817
(c)
Maximum amount. The authority may not finance more than 50 percent or
18$25,000,000 whichever is less, of the principal of any loan under par. (a).
AB862,30,20
19(4) Fees. The authority shall charge a fee for assistance provided under this
20section to cover the costs of administering this section, including legal fees.
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21(5) Guidelines and procedures. The authority shall adopt guidelines and
22establish procedures for administering this section, including guidelines or
23procedures related to all of the following:
AB862,30,2524
(a) Application procedures for eligible borrowers and for lenders seeking to
25make loans in which the authority participates under this section.
AB862,31,2
1(b) Approval requirements for lenders and additional eligibility requirements
2for eligible borrowers.
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(c) The terms of participation agreements under sub. (2).
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(d) Repayment and security interest requirements.
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(e) Procedural requirements for the authority's participation in loans.
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(f) Auditing, inspection, and reporting requirements.
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(g) Any other relevant matters.
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8235.15 Loan guarantees. (1) Definitions. In this section:
AB862,31,109
(a) “Guaranteed loan" means a loan that is guaranteed by the authority under
10this section.
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(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.
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2. Any expenses of an eligible project.
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(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.
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(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.
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(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.
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(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.
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(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.
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(L) The participating lender agrees to the percentage of guarantee established
25for the loan by the authority.
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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.
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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.
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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.
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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.
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(b) Any income from investment of moneys in the fund by the authority.
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(c) Fees collected under s. 235.15 (6).
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(d) Moneys received by the authority for the fund from any source other than
17those specified in pars. (a) to (c).
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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.
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2. Any conditions upon which the authority may refuse to enter into such an
23agreement.
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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).