LRBs0038/1
MPG:kjf
2019 - 2020 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 125
June 3, 2019 - Offered by Representative Pronschinske.
AB125-ASA1,1,4 1An Act to amend 16.303 (title), 16.303 (1) (c), 16.303 (2) (intro.), 16.304 (1) (a)
2and 16.304 (1) (c); and to create 16.303 (1) (ar) and 16.303 (2r) of the statutes;
3relating to: housing quality standards loans, providing an exemption from
4emergency rule procedures, and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Under current law, the Department of Administration is required to award
grants or loans to persons or families of low or moderate income to defray housing
costs, subject to certain conditions and limitations. This bill additionally requires
DOA to award loans to owners of rental housing units for purposes of satisfying
applicable housing quality standards. Under the bill, a loan recipient must satisfy
all applicable housing quality standards for the duration of the loan. Additionally,
a loan recipient who rents housing units to persons or families of low or moderate
income may have the loan forgiven based on rules promulgated by DOA. Those rules
must also limit each loan to $10,000; limit loan recipients to the receipt of no more
than five loans; require, to the extent practicable and subject to certain limitations
specified in the bill, an equal distribution of loans throughout the state; and require
DOA to publicize the loan program.
Current law authorizes the Joint Committee on Finance to supplement an
agency's appropriation that is insufficient only if JCF finds that an emergency exists.

This bill exempts from that requirement any request of DOA in the 2019-21 fiscal
biennium for JCF to supplement the appropriation of DOA for housing quality
standards loans provided under the bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB125-ASA1,1 1Section 1. 16.303 (title) of the statutes is amended to read:
AB125-ASA1,2,3 216.303 (title) Housing cost and housing quality standards grants and
3loans.
AB125-ASA1,2 4Section 2. 16.303 (1) (ar) of the statutes is created to read:
AB125-ASA1,2,75 16.303 (1) (ar) Subject to sub. (2r), award loans from the appropriation under
6s. 20.505 (7) (b) to owners of rental housing units in this state for purposes of
7satisfying applicable housing quality standards.
AB125-ASA1,3 8Section 3. 16.303 (1) (c) of the statutes is amended to read:
AB125-ASA1,2,119 16.303 (1) (c) Set minimum standards for housing that is occupied by a person
10or family of low or moderate income who receives a grant or loan under this section
11par. (a).
AB125-ASA1,4 12Section 4. 16.303 (2) (intro.) of the statutes is amended to read:
AB125-ASA1,2,1413 16.303 (2) (intro.) In connection with grants and loans under sub. (1) (a), the
14department shall do all of the following:
AB125-ASA1,5 15Section 5. 16.303 (2r) of the statutes is created to read:
AB125-ASA1,2,1716 16.303 (2r) (a) In connection with loans under sub. (1) (ar), all of the following
17apply:
AB125-ASA1,2,2018 1. The department shall contract with each loan recipient. The contract shall
19require the loan recipient to satisfy all applicable housing quality standards for the
20duration of the loan.
AB125-ASA1,3,3
12. A loan recipient who rents housing units to persons or families of low or
2moderate income may have the loan forgiven based on the rules promulgated under
3par. (b).
AB125-ASA1,3,54 (b) The department shall promulgate rules to administer the loan program
5under sub. (1) (ar), including rules that do all of the following:
AB125-ASA1,3,66 1. Establish procedures for selecting loan recipients and for loan forgiveness.
AB125-ASA1,3,77 2. Limit each loan award to $10,000.
AB125-ASA1,3,98 3. Provide that no loan recipient, including all subsidiaries and affiliates, may
9receive more than a total of 5 loans.
AB125-ASA1,3,1210 4. Require that the department, to the extent practicable based on loan
11applications, shall distribute loan awards equally among all counties in the state,
12subject to all of the following:
AB125-ASA1,3,1413 a. At least 50 percent of all loans shall be awarded to recipients located in a
14rural county, as defined in s. 39.399 (1g) (a).
AB125-ASA1,3,1615 b. No more than 20 percent of all loans may be awarded to recipients located
16in a county containing a 1st class city.
AB125-ASA1,3,1817 5. Require the department to publicize the loan program, including on the
18Internet.
AB125-ASA1,6 19Section 6. 16.304 (1) (a) of the statutes is amended to read:
AB125-ASA1,3,2120 16.304 (1) (a) Award grants and loans under s. 16.303 (1) (a) and (2) subject to
21the approval of the department.
AB125-ASA1,7 22Section 7. 16.304 (1) (c) of the statutes is amended to read:
AB125-ASA1,3,2523 16.304 (1) (c) On terms approved by the department, administer and disburse
24funds from a grant or loan under s. 16.303 (1) (a) on behalf of the recipient of the grant
25or loan.
AB125-ASA1,9101
1Section 9101. Nonstatutory provisions; Administration.
AB125-ASA1,4,112 (1) Emergency rules. Using the procedure under s. 227.24, the department of
3administration may promulgate rules necessary to implement the housing quality
4standards loan program under s. 16.303 (1) (ar). Notwithstanding s. 227.24 (1) (a)
5and (3), the department is not required to provide evidence that promulgating a rule
6under this subsection as an emergency rule is necessary for the preservation of the
7public peace, health, safety, or welfare and is not required to provide a finding of
8emergency for a rule promulgated under this subsection. Notwithstanding s. 227.24
9(1) (c) and (2), the effective period of a rule promulgated under this subsection is for
102 years after its promulgation, or until permanent rules take effect, whichever is
11sooner, and the effective period may not be further extended under s. 227.24 (2).
AB125-ASA1,4,1712 (2) Funding. In the 2019-21 fiscal biennium, if the department of
13administration requests under s. 13.101 (3) that the joint committee on finance
14supplement the appropriation under s. 20.505 (7) (b) for the purpose of providing
15housing quality standards loans under s. 16.303 (1) (ar), the committee may
16supplement that appropriation for that purpose without finding that an emergency
17exists under s. 13.101 (3) (a) 1.
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