AB739-ASA1,44 25Section 44. Chapter 239 of the statutes is created to read:
AB739-ASA1,24,1
1Chapter 239
AB739-ASA1,24,3 2Wisconsin Student Loan
3 REFINANCING Authority
AB739-ASA1,24,4 4239.01 Definitions. In this chapter:
AB739-ASA1,24,5 5(1) "Authority" means the Wisconsin Student Loan Refinancing Authority.
AB739-ASA1,24,6 6(2) "Board" means the governing board of the authority.
AB739-ASA1,24,7 7(3) "Qualified education loan" has the meaning given in 26 USC 221 (d).
AB739-ASA1,24,11 8239.02 Creation and organization of authority. (1) (a) There is created an
9authority, which is a public body corporate and politic, to be known as the "Wisconsin
10Student Loan Refinancing Authority." The members of the board shall consist of all
11of the following:
AB739-ASA1,24,1212 1. One member of the majority party in each house of the legislature.
AB739-ASA1,24,1313 2. One member of the minority party in each house of the legislature.
AB739-ASA1,24,1614 3. One undergraduate student enrolled at least half-time and in good academic
15standing at an institution within the University of Wisconsin System who is at least
1618 years old and a resident of this state.
AB739-ASA1,24,1817 4. One student enrolled at least half-time and in good academic standing at a
18technical college who is at least 18 years old and a resident of this state.
AB739-ASA1,24,2119 5. One undergraduate student enrolled at least half-time and in good academic
20standing at a private, nonprofit institution of higher education located in this state
21who is at least 18 years old and a resident of this state.
AB739-ASA1,25,222 6. Two members who have at least 10 years experience in making qualified
23education loans or loan refinancing, but any person having a financial interest in or
24whose employer is primarily engaged in the business of making qualified education
25loans is not eligible for appointment under this subdivision, and any member

1appointed under this subdivision who acquires such an interest while serving as a
2member shall resign from the board.
AB739-ASA1,25,43 (b) 1. The members specified in par. (a) 1. and 2. shall be appointed as are the
4members of standing committees in their respective houses.
AB739-ASA1,25,65 2. The members specified in par. (a) 3. to 5. shall be nominated by the governor,
6and with the advice and consent of the senate appointed, for 2-year terms.
AB739-ASA1,25,87 3. The members specified in par. (a) 6. shall be nominated by the governor, and
8with the advice and consent of the senate appointed, for 3-year terms.
AB739-ASA1,25,14 9(2) If a student member of the board appointed under sub. (1) (a) 3. to 5. loses
10his or her student status upon which the appointment was based, he or she ceases
11to be a member of the board upon the appointment of a qualified successor to the
12board. A student member who loses his or her student status solely because he or
13she graduates from an institution of higher education may complete his or her
14current term on the board.
AB739-ASA1,25,20 15(3) The members of the board shall annually elect a chairperson and may elect
16other officers as they consider appropriate. A majority of the members of the board
17constitutes a quorum for the purpose of conducting its business and exercising its
18powers and for all other purposes, notwithstanding the existence of any vacancies.
19Action may be taken by the board upon a vote of a majority of the voting members
20present.
AB739-ASA1,25,23 21(4) A member of the board may not be compensated for his or her services but
22shall be reimbursed for actual and necessary expenses, including travel expenses,
23incurred in the performance of his or her duties.
AB739-ASA1,26,2 24(5) No cause of action of any nature may arise against and no civil liability may
25be imposed upon a member of the board for any act or omission in the performance

1of his or her powers and duties under this chapter, unless the person asserting
2liability proves that the act or omission constitutes willful misconduct.
AB739-ASA1,26,13 3(6) The board shall appoint a chief executive officer who shall not be a member
4of the board and who shall serve at the pleasure of the board. The chief executive
5officer shall receive such compensation as the board fixes. The chief executive officer
6or other person designated by resolution of the board shall keep a record of the
7proceedings of the authority and shall be custodian of all books, documents, and
8papers filed with the authority, the minute book or journal of the authority, and its
9official seal. The chief executive officer or other person may cause copies to be made
10of all minutes and other records and documents of the authority and may give
11certificates under the official seal of the authority to the effect that such copies are
12true copies, and all persons dealing with the authority may rely upon such
13certificates.
AB739-ASA1,26,16 14239.03 Powers of board. The board shall have all the powers necessary or
15convenient to carry out the purposes and provisions of this chapter. In addition to
16all other powers granted the board under this chapter, the board may specifically:
AB739-ASA1,26,18 17(1) Adopt, amend, and repeal any bylaws, policies, and procedures for the
18regulation of its affairs and the conduct of its business.
AB739-ASA1,26,19 19(2) Have a seal and alter the seal at pleasure.
AB739-ASA1,26,20 20(3) Maintain an office.
AB739-ASA1,26,21 21(4) Sue and be sued.
AB739-ASA1,26,23 22(5) Accept gifts, grants, loans, or other contributions from private or public
23sources.
AB739-ASA1,26,25 24(6) Establish the authority's annual budget and monitor the fiscal
25management of the authority.
AB739-ASA1,27,2
1(7) Execute contracts and other instruments required for the operation of the
2authority.
AB739-ASA1,27,4 3(8) Employ any officers, agents, and employees that it may require and
4determine their qualifications, duties, and compensation.
AB739-ASA1,27,5 5(9) Issue notes, bonds, and any other obligations.
AB739-ASA1,27,6 6(10) Make loans and provide grants.
AB739-ASA1,27,7 7(11) Incur debt.
AB739-ASA1,27,8 8(12) Procure liability insurance.
AB739-ASA1,27,11 9239.04 Duties of board. The board shall develop and implement a program
10under which state residents may refinance qualified education loans. The board
11shall develop the program to include all of the following:
AB739-ASA1,27,13 12(1) The authority shall provide a loan to an eligible individual to pay all or part
13of the individual's qualified education loans.
AB739-ASA1,27,15 14(2) The authority may only issue loans under the program that satisfy the
15exception to discharge under 11 USC 523 (8).
AB739-ASA1,27,19 16(3) The authority shall establish eligibility criteria to participate in the
17program that is substantially similar to the criteria used by private lenders in the
18state to evaluate whether an individual qualifies for an unsecured personal loan at
19market rates.
AB739-ASA1,27,22 20(4) The board shall set the interest rate on loans made under the program to
21be as low as possible but still sufficient to fully pay all expenses of the program and
22to provide necessary reserves, as determined by the board.
AB739-ASA1,27,25 23239.05 Issuance of bonds. (1) The authority may issue bonds for any
24corporate purpose. All bonds are negotiable for all purposes, notwithstanding their
25payment from a limited source.
AB739-ASA1,28,4
1(2) Except as otherwise expressly provided by the authority, every issue of its
2notes or bonds shall be general obligations of the authority payable out of any
3revenues or moneys of the authority, subject only to any agreements with the holders
4of particular notes or bonds pledging any particular receipts or revenues.
AB739-ASA1,28,6 5(3) All bonds issued by the authority are negotiable investment securities
6under ch. 408.
AB739-ASA1,28,17 7(4) The authority may not issue bonds unless the issuance is first authorized
8by a bond resolution. Bonds shall bear the dates, mature at the times not exceeding
950 years from their dates of issue, bear interest at the rates, be payable at the times,
10be in the denominations, be in the form, carry the registration and conversion
11privileges, be executed in the manner, be payable in lawful money of the United
12States at the places, and be subject to the terms of redemption, that the bond
13resolution provides. The bonds shall be executed by the manual or facsimile
14signatures of the officers of the authority designated by the board. The bonds may
15be sold at public or private sale at the price, in the manner, and at the time
16determined by the board. Pending preparation of definitive bonds, the authority may
17issue interim receipts or certificates that shall be exchanged for the definitive bonds.
AB739-ASA1,28,20 18(5) The board may include in bond resolution provisions, which shall be a part
19of the contract with the holders of the bonds that are authorized by the bond
20resolution, regarding any of the following:
AB739-ASA1,28,2121 (a) Pledging or assigning specified assets or revenues of the authority.
AB739-ASA1,28,2322 (b) Setting aside reserves or sinking funds, and the regulation, investment, and
23disposition of these funds.
AB739-ASA1,28,2524 (c) Limitations on the purpose to which or the investments in which the
25proceeds of the sale of any issue of bonds may be applied.
AB739-ASA1,29,3
1(d) Limitations on the issuance of additional bonds, the terms upon which
2additional bonds may be issued and secured, and the terms upon which additional
3bonds may rank on a parity with, or be subordinate or superior to, other bonds.
AB739-ASA1,29,44 (e) Funding, refunding, advance refunding, or purchasing outstanding bonds.
AB739-ASA1,29,75 (f) Procedures, if any, by which the terms of any contract with bondholders may
6be amended, the amount of bonds the holders of which must consent to the
7amendment, and the manner in which this consent may be given.
AB739-ASA1,29,108 (g) Defining the acts or omissions to act that constitute a default in the duties
9of the authority to the bondholders, and providing the rights and remedies of the
10bondholders in the event of a default.
AB739-ASA1,29,1111 (h) Other matters relating to the bonds that the board considers desirable.
AB739-ASA1,29,15 12(6) Neither the members of the board nor any person executing the bonds is
13liable personally on the bonds or subject to any personal liability or accountability
14by reason of the issuance of the bonds, unless the personal liability or accountability
15is the result of willful misconduct.
AB739-ASA1,29,24 16239.06 Bond security. The authority may secure bonds by a trust agreement,
17trust indenture, indenture of mortgage, or deed of trust by and between the authority
18and one or more corporate trustees. A bond resolution providing for the issuance of
19bonds so secured shall mortgage, pledge, assign, or grant security interests in some
20or all of the revenues to be received by, and property of, the authority and may contain
21those provisions for protecting and enforcing the rights and remedies of the
22bondholders that are reasonable and proper and not in violation of law. A bond
23resolution may contain other provisions determined by the board to be reasonable
24and proper for the security of the bondholders.
AB739-ASA1,30,6
1239.07 Bonds not public debt. (1) The state is not liable on bonds, and the
2bonds are not a debt of the state. All bonds shall contain a statement to this effect
3on the face of the bond. A bond issue does not, directly, indirectly, or contingently,
4obligate the state or a political subdivision of the state to levy any tax or make any
5appropriation for payment of the bonds. Nothing in this section prevents the
6authority from pledging its full faith and credit to the payment of bonds.
AB739-ASA1,30,16 7(2) Nothing in this chapter authorizes the authority to create a debt of the state,
8and all bonds issued by the authority are payable, and shall state that they are
9payable, solely from the funds pledged for their payment in accordance with the bond
10resolution authorizing their issuance or in any trust indenture or mortgage or deed
11of trust executed as security for the bonds. The state is not liable for the payment
12of the principal of or interest on a bond or for the performance of any pledge,
13mortgage, obligation, or agreement that may be undertaken by the authority. The
14breach of any pledge, mortgage, obligation, or agreement undertaken by the
15authority does not impose pecuniary liability upon the state or a charge upon its
16general credit or against its taxing power.
AB739-ASA1,30,23 17239.08 State pledge. The state pledges to and agrees with the bondholders,
18and persons that enter into contracts with the authority under this chapter, that the
19state will not limit or alter the rights vested in the authority by this chapter before
20the authority has fully met and discharged the bonds, and any interest due on the
21bonds, and has fully performed its contracts, unless adequate provision is made by
22law for the protection of the bondholders or those entering into contracts with the
23authority.
AB739-ASA1,31,2 24239.09 Liability limited. Neither the state nor any political subdivision of
25the state, nor any officer, employee, or agent of the state or a political subdivision of

1the state who is acting within the scope of employment or agency, is liable for any
2debt, obligation, act, or omission of the authority.
AB739-ASA1,31,5 3239.10 Annual report. (1) Annually, the board shall submit to the chief clerk
4of each house of the legislature, for distribution to the legislature under s. 13.172 (2),
5a report on the activities of the authority, including all of the following:
AB739-ASA1,31,66 (a) Its operations, accomplishments, goals, and objectives.
AB739-ASA1,31,77 (b) A statement of income and expenses for the fiscal year.
AB739-ASA1,31,88 (c) Its assets and liabilities at the end of its fiscal year.
AB739-ASA1,31,119 (d) A schedule of its bonds and notes outstanding at the end of its fiscal year,
10together with a statement of the amounts redeemed and incurred during such fiscal
11year.
AB739-ASA1,31,17 12(2) The authority, annually on January 15, shall file with the department of
13administration and the joint legislative council a complete and current listing of all
14forms, reports, and papers required by the authority to be completed by any person,
15other than a governmental body, as a condition of obtaining the approval of the
16authority or for any other reason. The authority shall attach a blank copy of each
17such form, report, or paper to the listing.
AB739-ASA1,45 18Section 45. Nonstatutory provisions.
AB739-ASA1,31,2519 (1) Staggered terms. Notwithstanding the length of terms specified for the
20members of the board of the Wisconsin Student Loan Refinancing Authority under
21section 239.02 of the statutes, as created by this act, of the 5 members appointed
22under section 239.02 (1) (a) 3. to 6. of the statutes, as created by this act, one of the
23initial members shall be appointed for a term expiring on July 1, 2017, 2 of the initial
24members shall be appointed for terms expiring on July 1, 2018, and the remaining
252 initial members shall be appointed for terms expiring on July 1, 2019.
AB739-ASA1,46
1Section 46. Initial applicability.
AB739-ASA1,32,7 2(1) Tuition expenses deduction. The treatment of section 71.05 (6) (b) 28.
3(intro.) and j. of the statutes first applies to taxable years beginning on January 1 of
4the year in which this subsection takes effect, except that if this subsection takes
5effect after July 31 the treatment of section 71.05 (6) (b) 28. (intro.), am., h., and j.
6of the statutes first applies to taxable years beginning on January 1 of the year
7following the year in which this subsection takes effect.
AB739-ASA1,47 8Section 47. Effective dates. This act takes effect on the day after publication,
9except as follows:
AB739-ASA1,32,12 10(1) Financial aid information. The treatment of sections 39.28 (7), 39.54, and
11224.30 (6) of the statutes takes effect on the first day of the 7th month beginning after
12publication.
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