Amendment ASA1-SB628

SB628-ASA1, s. 26 Section 26. 234.75 of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.

SB628-ASA1, s. 27 Section 27. 234.76 of the statutes is repealed.

SB628-ASA1, s. 28 Section 28. 234.765 of the statutes is repealed.

SB628-ASA1, s. 29 Section 29. 234.80 of the statutes is repealed.

SB628-ASA1, s. 30 Section 30. 234.802 of the statutes is renumbered 234.92.

SB628-ASA1, s. 31 Section 31. 234.82 of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.

SB628-ASA1, s. 32 Section 32. 234.83 (title) of the statutes is amended to read:

SB628-ASA1,7,24 234.83 (title) Targeted Small business development loan guarantee program.

SB628-ASA1, s. 33 Section 33. Subchapter II (title) of chapter 234 [precedes 234.83] of the statutes is created to read:

SB628-ASA1,8,3 Chapter 234

SB628-ASA1,8,5 Subchapter II Loan guarantee programs

SB628-ASA1, s. 34 Section 34. 234.83 (1) (c) of the statutes is amended to read:

SB628-ASA1,8,8 234.83 (1) (c) The lender is a financial institution that enters into an agreement under s. 234.93 (2) (a).

SB628-ASA1, s. 35 Section 35. 234.83 (2) (a) of the statutes is renumbered 234.83 (2) (a) (intro.) and amended to read:

SB628-ASA1,8,12 234.83 (2) (a) (intro.) A business, as defined in s. 560.60 (2)., to which all of the following apply:

SB628-ASA1, s. 36 Section 36. 234.83 (2) (a) 1. to 4. of the statutes are created to read:

SB628-ASA1,8,14 234.83 (2) (a) 1. The owner of the business is actively engaged in the business.

SB628-ASA1,8,15 2. The annual gross revenue of the business does not exceed $2,500,000.

SB628-ASA1,8,16 3. The business employs 50 or fewer employes on a full-time basis.

SB628-ASA1,8,19 4. The authority has not received a certification under s. 46.255 (7) that the owner of the business is delinquent in making child support or maintenance payments.

SB628-ASA1, s. 37 Section 37. 234.83 (3) (a) of the statutes is renumbered 234.83 (3), and 234.83 (3) (a), (b), (d) and (i), as renumbered, is amended to read:

SB628-ASA1,9,2 234.83 (3) (a) The borrower uses the loan proceeds for a business development project in a targeted area. Loan proceeds may be used for direct or related expenses associated with the start-up, expansion or acquisition of a business, including working capital or the purchase or improvement of land, buildings, machinery, equipment or inventory.

SB628-ASA1,9,7 (b) Loan proceeds are not used to refinance existing debt or for operating or entertainment expenses, real estate investment, expenses related to a septic system, well or sewer unless associated with a business start-up, expansion or acquisition, expenses related to the production of an agricultural commodity, as defined in s. 94.67 (2), or expenses related to a community-based residential facility.

SB628-ASA1,9,10 (d) The loan term does not extend beyond 15 years after the date on which the financial institution disburses the loan unless the loan is extended by the authority agrees to an extension of the loan term.

SB628-ASA1,9,12 (i) The authority believes that the loan will have a positive economic impact on the targeted area in terms of job creation and retention.

SB628-ASA1, s. 38 Section 38. 234.83 (3) (b) of the statutes is repealed.

SB628-ASA1, s. 39 Section 39. 234.83 (4) (title) and (a) of the statutes are amended to read:

SB628-ASA1,9,21 234.83 (4) (title) Guarantee of collection repayment. (a) Subject to par. (b), the authority shall may guarantee collection repayment of a percentage, not exceeding 90% 80%, of the principal of any loan eligible for a guarantee under sub. (1). 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.

SB628-ASA1, s. 40 Section 40. 234.83 (4) (b) of the statutes is amended to read:

SB628-ASA1,9,25 234.83 (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) may not exceed $10,000,000 $27,650,000.

SB628-ASA1, s. 41 Section 41. 234.85 of the statutes is renumbered 234.35.

SB628-ASA1, s. 42 Section 42. 234.905 of the statutes is repealed.

SB628-ASA1, s. 43 Section 43. 234.907 of the statutes is repealed.

SB628-ASA1, s. 44 Section 44. 234.93 (2) (a) (intro.) of the statutes is amended to read:

SB628-ASA1,10,10 234.93 (2) (a) (intro.) The authority shall may enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association or other person who wishes to participate in a loan program guaranteed by the Wisconsin development reserve fund. The authority may determine all of the following, consistent with the terms of the specific loan guarantee program:

SB628-ASA1, s. 45 Section 45. 234.93 (2) (bm) of the statutes is created to read:

SB628-ASA1,10,18 234.93 (2) (bm) A guarantee agreement between the authority and a bank, production credit association, credit union, savings and loan association or other person under par. (a) with respect to a loan guaranteed under s. 234.67, 1993 stats., s. 234.765, 1993 stats., s. 234.82, 1993 stats., s. 234.83, 1993 stats., s. 234.907, 1993 stats., or s. 234.935, 1993 stats., that is in effect immediately before the effective date of this paragraph .... [revisor inserts date], shall continue in full force and effect until the termination or expiration of the agreement according to its terms.

SB628-ASA1, s. 46 Section 46. 234.93 (4) (a) 2. of the statutes, as affected by 1995 Wisconsin Act 5, is amended to read:

SB628-ASA1,10,25 234.93 (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, 1993 stats., at a ratio of $1 of reserve funding to $4 $5 of total principal and outstanding guaranteed principal that the authority may guarantee under all of those programs.

SB628-ASA1, s. 47 Section 47. 234.93 (4) (a) 3. of the statutes is created to read:

SB628-ASA1,11,4 234.93 (4) (a) 3. To fund guarantees under the program under s. 234.935, 1993 stats., at a ratio of $1 of reserve funding to $4 of total principal and outstanding guaranteed principal that the authority may guarantee under that program.

SB628-ASA1, s. 48 Section 48. 234.935 of the statutes is repealed.

SB628-ASA1, s. 49 Section 49. 234.94 (intro.) of the statutes is amended to read:

SB628-ASA1,11,8 234.94 (title) Community development finance company Definitions. (intro.) In ss. 234.94 to 234.98 this subchapter:

SB628-ASA1, s. 50 Section 50. Subchapter III (title) of chapter 234 [precedes 234.94] of the statutes is created to read:

SB628-ASA1,11,11 Chapter 234

SB628-ASA1,11,14 Subchapter III community development finance company

SB628-ASA1, s. 51 Section 51. 560.036 (2) (a) of the statutes is amended to read:

SB628-ASA1,11,22 560.036 (2) (a) For the purposes of ss. 16.75 (3m), 16.855 (10m), 16.87 (2), 18.16, 18.64, 18.77, 25.185, 66.911, 119.495 (2), 231.27, 234.35 and 234.65 (6) and 234.85, the department shall establish and periodically update a list of certified minority businesses, minority financial advisers and minority investment firms. Any business, financial adviser or investment firm may apply to the department for certification. For purposes of this paragraph, unless the context otherwise requires, a "business" includes a financial adviser or investment firm.

SB628-ASA1, s. 52 Section 52. 560.835 (1) (d) of the statutes is amended to read:

SB628-ASA1,11,25 560.835 (1) (d) The expansion, improvement or development of a diaper service, as defined in s. 234.67 (1) (am) business that supplies and launders cloth diapers.

SB628-ASA1, s. 53 Section 53. 600.01 (1) (b) 8. of the statutes, as affected by 1995 Wisconsin Acts 116 and 150, is amended to read:

SB628-ASA1,12,6 600.01 (1) (b) 8. Guarantees of the Wisconsin housing and economic development authority under ss. s. 234.67, 1993 stats., s. 234.68, s. 234.69, s. 234.765, 1993 stats., s. 234.82, 1993 stats., s. 234.83, s. 234.84, s. 234.87, s. 234.90, 234.905, s. 234.907, 1993 stats., and s. 234.91.

SB628-ASA1, s. 65 Section 65. Nonstatutory provisions.

SB628-ASA1,12,24 (1)  Memorandum of understanding. The department of commerce and the Wisconsin Housing and Economic Development Authority shall enter into a memorandum of understanding that establishes standards for the economic development activities of, and the economic development programs administered by, the department and the authority. The standards shall be established to ensure that the department does not duplicate the functions and efforts of the authority, and that the authority does not duplicate the functions and efforts of the department, with respect to the economic development activities and programs, and the intended beneficiaries of the economic development activities and programs, of each agency. The memorandum of understanding shall include sufficiently detailed descriptions of the department's and authority's activities and programs, and the intended beneficiaries of each, as to permit a clear delineation of which agency has principal responsibility for which specific economic development activities and programs. A copy of the memorandum of understanding, signed by the secretary of commerce and the executive director of the Wisconsin Housing and Economic Development Authority, shall be submitted to the cochairpersons of the joint committee on finance no later than 6 months after the effective date of this subsection.

SB628-ASA1,12,25 (End)