LRB-3574/1
PJK:kmg:kaf
1995 - 1996 LEGISLATURE
April 4, 1995 — Printed by direction of Senate Chief Clerk.
AB56-engrossed,1,7
1An Act to repeal 234.90 (3m) (b);
to renumber and amend 234.90 (3m) (a);
to
2amend 234.90 (2) (intro.), 234.90 (2) (d), 234.90 (3) (intro.), 234.90 (3g) (intro.),
3234.90 (4) (a), 234.90 (5) and 234.93 (4) (a) 2.; and
to create 234.90 (3j) and
4234.93 (4m) of the statutes;
relating to: extending the agricultural production
5loan guarantee program, changing the interest subsidy, authorizing the use of
6different eligibility criteria in emergencies and requesting an audit of
7administrative assessments against the Wisconsin development reserve fund.
Analysis by the Legislative Reference Bureau
Engrossment information:
The text of Engrossed 1995 Assembly Bill 56 consists of the following
documents adopted in the assembly on February 28, 1995: Assembly Substitute
Amendment 1 as affected by Assembly Amendments 1 and 3 (as affected by chief
clerk's correction).
These amendments both affect s. 234.90 (2) (d). Assembly Amendment 1 moves
the repeal of s. 234.90 (2) (d) from Section 1 to
Section 1b. Assembly Amendment
3 deletes the repeal of s. 234.90 (2) (d) and substitutes an amendment of that section.
This bill reflects the effect of Assembly Amendment 3.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB56-engrossed,2,4
1234.90
(2) Eligible loans. (intro.)
An Except as provided in sub. (3j), an 2agricultural production loan made by a participating lender is eligible for guarantee
3of collection from the Wisconsin development reserve fund under s. 234.93 if all of the
4following apply:
AB56-engrossed,2,96
234.90
(2) (d)
The If the rate of interest on the loan equals or exceeds 10%, the 7rate of interest on the loan for which the borrower is obligated, including any
8origination fees or other charges relating to the loan, does not exceed the rate
9determined under par. (c), minus 2%.
AB56-engrossed,2,1211
234.90
(3) Eligible farmers. (intro.) Except as provided under
sub. subs. (3g)
12and (3j), a farmer is eligible for a guaranteed loan if all of the following apply:
AB56-engrossed,2,1614
234.90
(3g) Eligible dairy farmer. (intro.)
A Except as provided in sub. (3j),
15a farmer is eligible for a guaranteed loan under this subsection if all of the following
16apply:
AB56-engrossed,2,2018
234.90
(3j) Emergency eligibility criteria. The authority may guarantee a
19loan to a farmer using eligibility criteria determined by the authority that differ from
20the criteria under subs. (2) to (3g) if all of the following apply:
AB56-engrossed,2,2321
(a) The governor has determined that an emergency situation exists and that
22the criteria under subs. (2) to (3g) prevent the authority from making an adequate
23response to the emergency situation.
AB56-engrossed,3,224
(b) The authority has submitted to the joint committee on finance for review
25under s. 13.10 the emergency eligibility criteria that it proposes to use, and the joint
1committee on finance has approved the use of the criteria for the emergency
2situation.
AB56-engrossed, s. 2
3Section 2. 234.90 (3m) (a) of the statutes is renumbered 234.90 (3m) and
4amended to read:
AB56-engrossed,3,75
234.90
(3m) Extension. Except as provided in par. (b), a A participating lender
6may extend the term of a loan until no later than June 30 of the calendar year
7following the calendar year in which the participating lender granted the loan.
AB56-engrossed,3,1410
234.90
(4) (a) Except as provided in par. (b), the authority shall guarantee
11repayment of 90% of the principal of any agricultural production loan eligible for
12guarantee under sub. (2) made to a farmer eligible for a guaranteed loan under sub.
13(3) or (3g)
during the period beginning on January 1, 1993, and ending on December
1431, 1994.
AB56-engrossed,3,2016
234.90
(5) Interest reduction. The If the rate of interest on a guaranteed loan
17at the time of origination or extension equals or exceeds 10%, the authority shall pay,
18from the moneys in the Wisconsin development reserve fund
, to
each the 19participating lender
making the loan, an amount equal to 2% of the principal amount
20of
any agricultural production the loan
guaranteed under sub. (4).
AB56-engrossed,3,2522
234.93
(4) (a) 2. To fund guarantees under all of the programs guaranteed by
23funds from the Wisconsin development reserve fund
at a ratio of $1 of reserve funding
24to $4 of total principal and outstanding guaranteed principal that the authority may
25guarantee under all of those programs.
AB56-engrossed,4,52
234.93
(4m) Limitation on loan guarantees. The authority shall regularly
3monitor the cash balance in the Wisconsin development reserve fund. The authority
4shall ensure that the cash balance in the fund is sufficient for the purposes specified
5in sub. (4) (a) 1. and 2.
AB56-engrossed,4,17
7(1) The joint legislative audit committee is requested to direct the legislative
8audit bureau to perform a financial and performance evaluation audit of the
9assessments made against the Wisconsin development reserve fund by the
10Wisconsin Housing and Economic Development Authority for its costs to administer
11each of the loan guarantee programs established under chapter 234 of the statutes.
12The audit shall include, for each loan guarantee program, a comparison of the costs
13that a commercial lender would likely incur to administer a similar loan guarantee
14program and the costs that the Wisconsin Housing and Economic Development
15Authority assessed for administration of the program. The legislative audit bureau
16shall file a report of an audit performed under this subsection with those entities
17specified in section 13.94 (1) (b) of the statutes.
AB56-engrossed,4,21
19(1) The treatment of section 234.90 (2) (intro.) and (d), (3) (intro.), (3g) (intro.),
20(3j), (3m) (a) and (b), (4) (a) and (5) of the statutes first applies to agricultural
21production loans made on January 1, 1995.
