AB583: Bill Text

AB583,2,13 20.490 (5) (b) Job training loan guarantee transfer to Wisconsin development reserve fund. A sum sufficient in an amount equal to the amount, not to exceed $2,000,000, that was encumbered before July 1, 1995, under the appropriation under s. 20.143 (1) (c) and that will lapse to the general fund after July 1, 1995, and before July 1, 1997, because the moneys are unexpended and no longer needed for the purposes for which they were encumbered, to be transferred to the Wisconsin development reserve fund under s. 234.93.

AB583, s. 3 Section 3. 20.490 (5) (k) of the statutes is created to read:

AB583,3,4 20.490 (5) (k) Department of development appropriations transfer to Wisconsin development reserve fund. All moneys transferred under 1995 Wisconsin Act .... (this act), section 8 (1) (a) to be transferred to the Wisconsin development reserve fund under s. 234.93.

AB583, s. 4 Section 4. 234.265 (2) of the statutes is amended to read:

AB583,3,13 234.265 (2) Records or portions of records consisting of personal or financial information provided by a person seeking a grant or loan under s. 234.08, 234.49, 234.59, 234.65, 234.67, 234.68, 234.69, 234.70, 234.765, 234.82, 234.83, 234.84, 234.87, 234.90, 234.905 or 234.907, seeking a loan under ss. 234.621 to 234.626, seeking financial assistance under s. 234.66 or under ss. 234.75 to 234.802, seeking investment of funds under s. 234.03 (18m) or in which the authority has invested funds under s. 234.03 (18m), unless the person consents to disclosure of the information.

AB583, s. 5 Section 5. 234.84 of the statutes is created to read:

AB583,3,16 234.84 Job training loan guarantee program. (1) Definition. In this section, "department" means the department of development.

AB583,3,19 (2) Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee a loan under this section if, at the time application is made for the loan, all of the following apply:

AB583,3,21 (a) The borrower is an employer in this state, regardless of the number of employes.

AB583,3,22 (b) The loan qualifies as an eligible loan under sub. (3).

AB583,3,24 (c) The lender is a financial institution that enters into an agreement under s. 234.93 (2) (a).

AB583,4,2 (3) Eligible loans. A loan is eligible for guarantee of collection from the Wisconsin development reserve fund under s. 234.93 if all of the following apply:

AB583,4,5 (a) The borrower certifies that it will use the loan proceeds for expenses related to employe training or retraining or for purchasing equipment or upgrading facilities for purposes related to employe training or retraining.

AB583,4,7 (b) The borrower certifies that loan proceeds will not be used to refinance existing debt or for operating or entertainment expenses.

AB583,4,9 (c) The interest rate on the loan, including any origination fees or other charges, is approved by the department.

AB583,4,13 (d) The original loan term does not extend beyond 3 years if the loan proceeds are used exclusively for expenses related to instruction or training, or beyond 5 years if the loan proceeds are used for purchasing equipment or upgrading facilities that will be used for instructing or training employes.

AB583,4,15 (e) The total outstanding principal amount of all loans to the borrower that are guaranteed under this section does not exceed $250,000.

AB583,4,18 (f) The lender obtains a security interest in the physical plant, equipment or other assets if the loan proceeds are to be used for purchasing equipment or upgrading facilities that will be used for instructing or training employes.

AB583,4,20 (g) The lender confirms that the borrower satisfies all applicable loan underwriting criteria.

AB583,5,2 (4) Guarantee of collection. (a) Subject to par. (b), the authority shall guarantee collection of a percentage of the principal of, and all interest and any other amounts outstanding on, any loan eligible for a guarantee under sub. (2). The department 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 department may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.

AB583,5,5 (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 $9,333,300.

AB583,5,17 (5) Administration. (a) The program under this section shall be administered by the department with the cooperation of the authority. The department shall enter into a memorandum of understanding with the authority setting forth the respective responsibilities of the department and the authority with regard to the administration of the program, including the functions and responsibilities specified in s. 234.93. The department may perform any of the functions required of or reserved to the authority under s. 234.93 with respect to the program under this section. The memorandum of understanding shall provide for reimbursement to the department by the authority for costs incurred by the department in the administration of the program. The department shall deposit all moneys received in reimbursement of its administrative costs in the appropriation account under s. 20.143 (1) (g).

AB583,5,21 (b) The department may charge a premium, fee or other charge to a borrower of a guaranteed loan under this section for the administration of the loan guarantee. The department shall deposit all moneys received under this paragraph in the appropriation account under s. 20.143 (1) (g).

AB583, s. 6 Section 6. 234.93 (1) (a) of the statutes is amended to read:

AB583,5,25 234.93 (1) (a) Moneys appropriated to the authority under s. 20.490 (5) (a), (b), (k), (q), (r) and (s) or received by the authority for the Wisconsin development reserve fund from any other source.

AB583, s. 7 Section 7. 600.01 (1) (b) 8. of the statutes is amended to read:

AB583,6,4 600.01 (1) (b) 8. Guarantees of the Wisconsin housing and economic development authority under ss. 234.67, 234.68, 234.69, 234.765, 234.82, 234.83, 234.84, 234.87, 234.90, 234.905 and 234.907.

AB583, s. 8 Section 8 . Appropriation changes.

AB583,6,6 (1)   Transfer from department of commerce appropriations.

AB583,6,18 (a) Notwithstanding section 20.001 (3) (a), (b) and (c) of the statutes and subject to the approval of the joint committee on finance under paragraph (c), if the amount that was encumbered before July 1, 1995, under the appropriation under section 20.143 (1) (c) of the statutes and that will lapse to the general fund after July 1, 1995, and before July 1, 1997, because the moneys are unexpended and no longer needed for the purposes for which they were encumbered is less than $2,000,000, on June 30, 1997, the secretary of administration shall transfer to the appropriation account under section 20.490 (5) (k) of the statutes, as created by this act, from one or more appropriations made to the department of commerce, the difference between that amount and $2,000,000. The department of commerce shall indicate its preference for allocation among its appropriations of the amount to be transferred in the plan to be submitted to the joint committee on finance under paragraph (c).

AB583,6,24 (b) If the department desires to include in its allocation preference plan moneys from program revenue or program revenue-service appropriations in excess of the amounts appropriated under those appropriations, the department shall transfer all or a portion of the unappropriated balance in each such appropriation account that it desires to include in its allocation preference plan to the appropriation account under section 20.143 (4) (kd) of the statutes, as created by this act.

AB583,7,13 (c) If paragraph (a) applies, before June 30, 1997, the department of commerce shall submit to the joint committee on finance for review and approval a plan identifying the department's preference for allocation among its appropriations of the amount to be transferred under paragraph (a) . If the cochairpersons of the committee do not notify the department that the committee has scheduled a meeting for the purpose of reviewing the proposed plan within 14 working days after the date of the department's submittal, the secretary of administration may transfer the amount under paragraph (a) in conformance with the department's plan. If within 14 working days after the date of the department's submittal the cochairpersons of the committee notify the department that the committee has scheduled a meeting for the purpose of reviewing the proposed plan, the secretary of administration may not transfer the amount under paragraph (a) in conformance with the plan until it is approved by the committee, as submitted or as modified.

AB583, s. 9 Section 9. Effective dates. This act takes effect on the day after publication, except as follows:

AB583,7,18 (1) Transfer from department of commerce appropriations. The treatment of sections 20.143 (4) (kd) and 20.490 (5) (k) of the statutes and Section 8 of this act take effect on July 1, 1996.

AB583,7,19 (End)