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19.42
(13) (p) The chief executive officer and members of the board of directors
15of the Wisconsin Student Loan Refinancing Authority.
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16Section
31. 20.005 (3) (schedule) of the statutes: at the appropriate place,
17insert the following amounts for the purposes indicated:
-
See PDF for table ![PDF](http://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
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18Section
32. 20.195 of the statutes is created to read:
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120.195 Wisconsin Student Loan Refinancing Authority. There is
2appropriated to the Wisconsin Student Loan Refinancing Authority for the following
3programs:
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4(1) Student loan refinancing program. (a)
Initial funding. Biennially, the
5amounts in the schedule to fund the initial costs of operating the Wisconsin Student
6Loan Refinancing Authority and to start the student loan refinancing program under
7ch. 239.
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8Section
33. 40.02 (54) (n) of the statutes is created to read:
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40.02
(54) (n) The Wisconsin Student Loan Refinancing Authority.
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10Section
34. 70.11 (38v) of the statutes is created to read:
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70.11
(38v) Wisconsin Student Loan Refinancing Authority. All property
12owned by the Wisconsin Student Loan Refinancing Authority, provided that use of
13the property is primarily related to the purposes of the Wisconsin Student loan
14Refinancing Authority.
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15Section
35. 77.54 (9a) (a) of the statutes is amended to read:
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77.54
(9a) (a) This state or any agency thereof, the University of Wisconsin
17Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin
18Economic Development Corporation,
the Wisconsin Student Loan Refinancing
19Authority, and the Fox River Navigational System Authority.
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20Section
36. 100.45 (1) (dm) of the statutes is amended to read:
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100.45
(1) (dm) "State agency" means any office, department, agency,
22institution of higher education, association, society, or other body in state
23government created or authorized to be created by the constitution or any law which
24is entitled to expend moneys appropriated by law, including the legislature and the
25courts, the Wisconsin Housing and Economic Development Authority, the Bradley
1Center Sports and Entertainment Corporation, the University of Wisconsin
2Hospitals and Clinics Authority, the Wisconsin Health and Educational Facilities
3Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic
4Development Corporation,
the Wisconsin Student Loan Refinancing Authority, and
5the Fox River Navigational System Authority.
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230.03
(3) "Agency" means any board, commission, committee, council, or
9department in state government or a unit thereof created by the constitution or
10statutes if such board, commission, committee, council, department, unit, or the
11head thereof, is authorized to appoint subordinate staff by the constitution or
12statute, except the Board of Regents of the University of Wisconsin System, a
13legislative or judicial board, commission, committee, council, department, or unit
14thereof or an authority created under subch. II of ch. 114 or under ch. 231, 232, 233,
15234, 237, 238,
239, or 279. "Agency" does not mean any local unit of government or
16body within one or more local units of government that is created by law or by action
17of one or more local units of government.
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18Section
38. Chapter 239 of the statutes is created to read:
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20Wisconsin Student Loan
21
REFINANCING Authority
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22239.01 Definitions. In this chapter:
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23(1) "Authority" means the Wisconsin Student Loan Refinancing Authority.
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24(2) "Board" means the governing board of the authority.
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25(3) "Qualified education loan" has the meaning given in
26 USC 221 (d).
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1239.02 Creation and organization of authority. (1) (a) There is created an
2authority, which is a public body corporate and politic, to be known as the "Wisconsin
3Student Loan Refinancing Authority." The members of the board shall consist of all
4of the following:
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1. One member of the majority party in each house of the legislature.
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2. One member of the minority party in each house of the legislature.
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3. One undergraduate student enrolled at least half-time and in good academic
8standing at an institution within the University of Wisconsin System who is at least
918 years old and a resident of this state.
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4. One student enrolled at least half-time and in good academic standing at a
11technical college who is at least 18 years old and a resident of this state.
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5. One undergraduate student enrolled at least half-time and in good academic
13standing at a private, nonprofit institution of higher education located in this state
14who is at least 18 years old and a resident of this state.
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6. Two members who have at least 10 years experience in making qualified
16education loans or loan refinancing, but any person having a financial interest in or
17whose employer is primarily engaged in the business of making qualified education
18loans is not eligible for appointment under this subdivision, and any member
19appointed under this subdivision who acquires such an interest while serving as a
20member shall resign from the board.
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(b) 1. The members specified in par. (a) 1. and 2. shall be appointed as are the
22members of standing committees in their respective houses.
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2. The members specified in par. (a) 3. to 5. shall be nominated by the governor,
24and with the advice and consent of the senate appointed, for 2-year terms.
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13. The members specified in par. (a) 6. shall be nominated by the governor, and
2with the advice and consent of the senate appointed, for 3-year terms.
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3(2) If a student member of the board appointed under sub. (1) (a) 3. to 5. loses
4his or her student status upon which the appointment was based, he or she ceases
5to be a member of the board upon the appointment of a qualified successor to the
6board. A student member who loses his or her student status solely because he or
7she graduates from an institution of higher education may complete his or her
8current term on the board.
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9(3) The members of the board shall annually elect a chairperson and may elect
10other officers as they consider appropriate. A majority of the members of the board
11constitutes a quorum for the purpose of conducting its business and exercising its
12powers and for all other purposes, notwithstanding the existence of any vacancies.
13Action may be taken by the board upon a vote of a majority of the voting members
14present.
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15(4) A member of the board may not be compensated for his or her services but
16shall be reimbursed for actual and necessary expenses, including travel expenses,
17incurred in the performance of his or her duties.
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18(5) No cause of action of any nature may arise against and no civil liability may
19be imposed upon a member of the board for any act or omission in the performance
20of his or her powers and duties under this chapter, unless the person asserting
21liability proves that the act or omission constitutes willful misconduct.
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22(6) The board shall appoint a chief executive officer who shall not be a member
23of the board and who shall serve at the pleasure of the board. The chief executive
24officer shall receive such compensation as the board fixes. The chief executive officer
25or other person designated by resolution of the board shall keep a record of the
1proceedings of the authority and shall be custodian of all books, documents, and
2papers filed with the authority, the minute book or journal of the authority, and its
3official seal. The chief executive officer or other person may cause copies to be made
4of all minutes and other records and documents of the authority and may give
5certificates under the official seal of the authority to the effect that such copies are
6true copies, and all persons dealing with the authority may rely upon such
7certificates.
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8239.03 Powers of board. The board shall have all the powers necessary or
9convenient to carry out the purposes and provisions of this chapter. In addition to
10all other powers granted the board under this chapter, the board may specifically:
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11(1) Adopt, amend, and repeal any bylaws, policies, and procedures for the
12regulation of its affairs and the conduct of its business.
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13(2) Have a seal and alter the seal at pleasure.
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14(3) Maintain an office.
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15(4) Sue and be sued.
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16(5) Accept gifts, grants, loans, or other contributions from private or public
17sources.
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18(6) Establish the authority's annual budget and monitor the fiscal
19management of the authority.
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20(7) Execute contracts and other instruments required for the operation of the
21authority.
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22(8) Employ any officers, agents, and employees that it may require and
23determine their qualifications, duties, and compensation.
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24(9) Issue notes, bonds, and any other obligations.
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25(10) Make loans and provide grants.
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1(11) Incur debt.
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2(12) Procure liability insurance.
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3239.04 Duties of board. The board shall develop and implement a program
4under which state residents may refinance qualified education loans. The board
5shall develop the program to include all of the following:
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6(1) The authority shall provide a loan to an eligible individual to pay all or part
7of the individual's qualified education loans.
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8(2) The authority may only issue loans under the program that satisfy the
9exception to discharge under
11 USC 523 (8).
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10(3) The authority shall establish eligibility criteria to participate in the
11program that is substantially similar to the criteria used by private lenders in the
12state to evaluate whether an individual qualifies for an unsecured personal loan at
13market rates.
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14(4) The board shall set the interest rate on loans made under the program to
15be as low as possible but still sufficient to fully pay all expenses of the program and
16to provide necessary reserves, as determined by the board.
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17239.05 Issuance of bonds. (1) The authority may issue bonds for any
18corporate purpose. All bonds are negotiable for all purposes, notwithstanding their
19payment from a limited source.
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20(2) Except as otherwise expressly provided by the authority, every issue of its
21notes or bonds shall be general obligations of the authority payable out of any
22revenues or moneys of the authority, subject only to any agreements with the holders
23of particular notes or bonds pledging any particular receipts or revenues.
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24(3) All bonds issued by the authority are negotiable investment securities
25under ch. 408.
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1(4) The authority may not issue bonds unless the issuance is first authorized
2by a bond resolution. Bonds shall bear the dates, mature at the times not exceeding
350 years from their dates of issue, bear interest at the rates, be payable at the times,
4be in the denominations, be in the form, carry the registration and conversion
5privileges, be executed in the manner, be payable in lawful money of the United
6States at the places, and be subject to the terms of redemption, that the bond
7resolution provides. The bonds shall be executed by the manual or facsimile
8signatures of the officers of the authority designated by the board. The bonds may
9be sold at public or private sale at the price, in the manner, and at the time
10determined by the board. Pending preparation of definitive bonds, the authority may
11issue interim receipts or certificates that shall be exchanged for the definitive bonds.
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12(5) The board may include in bond resolution provisions, which shall be a part
13of the contract with the holders of the bonds that are authorized by the bond
14resolution, regarding any of the following:
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(a) Pledging or assigning specified assets or revenues of the authority.
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(b) Setting aside reserves or sinking funds, and the regulation, investment, and
17disposition of these funds.
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(c) Limitations on the purpose to which or the investments in which the
19proceeds of the sale of any issue of bonds may be applied.
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(d) Limitations on the issuance of additional bonds, the terms upon which
21additional bonds may be issued and secured, and the terms upon which additional
22bonds may rank on a parity with, or be subordinate or superior to, other bonds.
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(e) Funding, refunding, advance refunding, or purchasing outstanding bonds.
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1(f) Procedures, if any, by which the terms of any contract with bondholders may
2be amended, the amount of bonds the holders of which must consent to the
3amendment, and the manner in which this consent may be given.
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(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.
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8(6) 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.
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12239.06 Bond security. The authority may secure bonds by a trust agreement,
13trust indenture, indenture of mortgage, or deed of trust by and between the authority
14and one or more corporate trustees. A bond resolution providing for the issuance of
15bonds so secured shall mortgage, pledge, assign, or grant security interests in some
16or all of the revenues to be received by, and property of, the authority and may contain
17those provisions for protecting and enforcing the rights and remedies of the
18bondholders that are reasonable and proper and not in violation of law. A bond
19resolution may contain other provisions determined by the board to be reasonable
20and proper for the security of the bondholders.
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21239.07 Bonds not public debt.
(1) The state is not liable on bonds, and the
22bonds are not a debt of the state. All bonds shall contain a statement to this effect
23on the face of the bond. A bond issue does not, directly, indirectly, or contingently,
24obligate the state or a political subdivision of the state to levy any tax or make any
1appropriation for payment of the bonds. Nothing in this section prevents the
2authority from pledging its full faith and credit to the payment of bonds.
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3(2) Nothing in this chapter authorizes the authority to create a debt of the state,
4and all bonds issued by the authority are payable, and shall state that they are
5payable, solely from the funds pledged for their payment in accordance with the bond
6resolution authorizing their issuance or in any trust indenture or mortgage 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 a bond or for the performance of any pledge,
9mortgage, obligation, or agreement that may be undertaken by the authority. The
10breach of any pledge, mortgage, obligation, or agreement undertaken by the
11authority does not impose pecuniary liability upon the state or a charge upon its
12general credit or against its taxing power.
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13239.08 State pledge. The state pledges to and agrees with the bondholders,
14and persons that enter into contracts with the authority under this chapter, that the
15state will not limit or alter the rights vested in the authority by this chapter before
16the authority has fully met and discharged the bonds, and any interest due on the
17bonds, and has fully performed its contracts, unless adequate provision is made by
18law for the protection of the bondholders or those entering into contracts with the
19authority.
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20239.09 Liability limited. Neither the state nor any political subdivision of
21the state, nor any officer, employee, or agent of the state or a political subdivision of
22the state who is acting within the scope of employment or agency, is liable for any
23debt, obligation, act, or omission of the authority.
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1239.10 Annual report.
(1) Annually, the board shall submit to the chief clerk
2of each house of the legislature, for distribution to the legislature under s. 13.172 (2),
3a report on the activities of the authority, including all of the following:
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(a) Its operations, accomplishments, goals, and objectives.
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(b) A statement of income and expenses for the fiscal year.
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(c) Its assets and liabilities at the end of its fiscal year.
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(d) A schedule of its bonds and notes outstanding at the end of its fiscal year,
8together with a statement of the amounts redeemed and incurred during such fiscal
9year.
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10(2) The authority, annually on January 15, shall file with the department of
11administration and the joint legislative council a complete and current listing of all
12forms, reports, and papers required by the authority to be completed by any person,
13other than a governmental body, as a condition of obtaining the approval of the
14authority or for any other reason. The authority shall attach a blank copy of each
15such form, report, or paper to the listing.
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(1)
Staggered terms. Notwithstanding the length of terms specified for the
18members of the board of the Wisconsin Student Loan Refinancing Authority under
19section 239.02 of the statutes, as created by this act, of the 5 members appointed
20under section 239.02 (1) (a) 3. to 6. of the statutes, as created by this act, one of the
21initial members shall be appointed for a term expiring on July 1, 2017, 2 of the initial
22members shall be appointed for terms expiring on July 1, 2018, and the remaining
232 initial members shall be appointed for terms expiring on July 1, 2019.