AB684: Bill Text

AB684,14,7 234.90 (4) Guarantee. The On or before the effective date of this subsection .... [revisor inserts date], the authority shall may guarantee repayment of 90% of the principal of any agricultural production loan eligible for guarantee under sub. (2) made to a farmer eligible for a guaranteed loan under sub. (3) or (3g).

AB684, s. 36 Section 36. 234.907 (3) of the statutes is amended to read:

AB684,14,16 234.907 (3) Guarantee of collection. The On or before the effective date of this subsection .... [revisor inserts date], the authority shall may guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for a guarantee under sub. (2). The authority shall establish the percentage of the unpaid principal of an eligible loan that will be guaranteed, using the procedures described in the guarantee agreement under s. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.

AB684, s. 37 Section 37. 234.91 (5) (a) of the statutes is amended to read:

AB684,14,23 234.91 (5) (a) The On or before the effective date of this paragraph .... [revisor inserts date], the authority shall may guarantee collection of a percentage of the principal of a loan eligible for a guarantee under sub. (2). The principal amount of an eligible loan that the authority may guarantee may not exceed the borrower's net worth or 25% of the total loan amount, whichever is less, calculated at the time the loan is made.

AB684, s. 38 Section 38. Chapter 238 of the statutes is created to read:

AB684,15,3 Chapter 238 Wisconsin Rural finance authority

AB684,15,4 238.01 Definitions. In this chapter:

AB684,15,5 (1) "Authority" means the Wisconsin Rural Finance Authority.

AB684,15,6 (2) "Board" means the board of directors of the authority.

AB684,15,8 (3) "Bond" means a bond, note, or other obligation of the authority issued under this chapter, including a refunding bond.

AB684,15,12 (4) "Bond resolution" means a resolution of the board authorizing the issuance of, or providing terms and conditions related to, bonds and includes, when appropriate, any trust agreement, trust indenture, indenture of mortgage, or deed of trust providing terms and conditions for the bonds.

AB684,15,15 238.02 Creation and organization. (1) (a) There is created a public body politic and corporate to be known as the "Wisconsin Rural Finance Authority." The board of the authority shall consist of the following members:

AB684,15,16 1. Three agricultural producers.

AB684,15,17 2. Three commercial lenders.

AB684,15,18 3. Two individuals who are not agricultural producers or commercial lenders.

AB684,15,19 4. The secretary of commerce or his or her designee.

AB684,15,21 5. The secretary of agriculture, trade and consumer protection or his or her designee.

AB684,15,23 6. The executive director of the Wisconsin Housing and Economic Development Authority or his or her designee.

AB684,15,25 (b) The members under par. (a) 1. to 3. shall be nominated by the governor, and with the advice and consent of the senate appointed, for 4-year terms.

AB684,16,2 (c) Members of the board shall be residents of the state, and not more than 4 of the members under par. (a) 1. to 3. may be members of the same political party.

AB684,16,4 (d) The terms of the members appointed under par. (a) 1. to 3. expire on July 1. Each member's appointment remains in effect until a successor is appointed.

AB684,16,6 (e) Annually, the governor shall appoint one member as chairperson and the board shall elect one member as vice chairperson.

AB684,16,22 (2) The secretary of agriculture, trade and consumer protection, after consultation with the board, shall appoint an executive director who may not be a member of the board and who shall serve at the pleasure of the secretary. The board shall determine the compensation of the executive director, except that the compensation of the executive director may not exceed the maximum of the salary range established under s. 20.923 (1) for positions assigned to executive salary group 4 and the compensation of each other employee of the authority may not exceed the maximum of the salary range established under s. 20.923 (1) for positions assigned to executive salary group 3. The executive director or another person designated by resolution of the board shall keep a record of the proceedings of the authority and shall be custodian of all books, documents, and papers filed with the authority, the minute book or journal of the authority, and its official seal. The executive director, or other person may cause copies to be made of all minutes and other records and documents of the authority and may give certificates under the official seal of the authority to the effect that the copies are true copies, and all persons dealing with the authority may rely upon the certificates.

AB684,17,6 (3) Six members of the board constitute a quorum. The affirmative vote of a majority of all of the members of the board is necessary for any action taken by the authority. A vacancy in the membership of the board does not impair the right of a quorum to exercise all of the rights and perform all of the duties of the authority. Each meeting of the board shall be open to the public. Notice of meetings, or waivers thereof, shall be as provided in the bylaws of the authority. Resolutions of the authority need not be published or posted. The board may delegate by resolution to one or more of its members or the executive director the powers and duties that it considers proper.

AB684,17,10 (5) The members of the board shall receive no compensation for the performance of their duties as members, but each member shall be reimbursed for the member's actual and necessary expenses while engaged in the performance of the member's duties.

AB684,17,13 238.03 Powers of authority. The authority has all of the powers necessary or convenient to carry out the purposes and provisions of this chapter. In addition to all other powers granted by this chapter, the authority may do any of the following:

AB684,17,15 (1) Adopt bylaws and rules for the regulation of its affairs and the conduct of its business.

AB684,17,16 (2) Sue and be sued.

AB684,17,18 (3) Hire employees, define their duties, and fix their rate of compensation, subject to s. 238.02 (2).

AB684,17,20 (4) Have a seal and alter the seal at pleasure; have perpetual existence; and maintain an office.

AB684,17,24 (5) Appoint any technical or professional advisory committee that the authority finds necessary to assist the authority in exercising its duties and powers; define the duties of any committee; and provide reimbursement for the expenses of any committee.

AB684,18,2 (6) Enter into contracts with 3rd parties as are necessary for the conduct of its business.

AB684,18,3 (7) Accept gifts, grants, and other funding for the conduct of its business.

AB684,18,4 (8) Charge fees for services that the authority provides.

AB684,18,6 (9) Procure insurance against any loss in connection with its assets and procure insurance on its debt obligations.

AB684,18,16 238.05 Political activities. (1) No employee of the authority may directly or indirectly solicit or receive subscriptions or contributions for any partisan political party or any political purpose while engaged in his or her official duties as an employee. No employee of the authority may engage in any form of political activity calculated to favor or improve the chances of any political party or any person seeking or attempting to hold partisan political office while engaged in his or her official duties as an employee or engage in any political activity while not engaged in his or her official duties as an employee to such an extent that the person's efficiency during working hours will be impaired or that he or she will be tardy or absent from work. Any violation of this section is adequate grounds for dismissal.

AB684,18,20 (2) If an employee of the authority declares an intention to run for partisan political office, the employee shall be placed on a leave of absence for the duration of the election campaign and if elected shall no longer be employed by the authority on assuming the duties and responsibilities of such office.

AB684,18,22 (3) An employee of the authority may be granted, by the chief executive officer, a leave of absence to participate in partisan political campaigning.

AB684,18,25 (4) Persons on leave of absence under sub. (2) or (3) are not subject to the restrictions of sub. (1), except as they apply to the solicitation of assistance, subscription, or support from any other employee in the authority.

AB684,19,4 238.06 Cooperation. To enhance the efficiency and effectiveness of the authority, the authority shall use staff and other resources of state agencies, including the University of Wisconsin System, and state agencies shall, to the extent possible given their staff and other resources, provide assistance to the authority.

AB684,19,7 238.08 Issuance of bonds. (1) The authority may issue bonds for any corporate purpose. All bonds are negotiable for all purposes, notwithstanding their payment from a limited source.

AB684,19,9 (2) The bonds of each issue shall be payable from sources specified in the bond resolution under which the bonds are issued.

AB684,19,21 (3) The authority may not issue bonds unless the issuance is first authorized by a bond resolution. Bonds shall bear the dates, mature at the times not exceeding 30 years from their dates of issue, bear interest at the rates, be payable at the times, be in the denominations, be in the form, carry the registration and conversion privileges, be executed in the manner, be payable in lawful money of the United States at the places, and be subject to the terms of redemption, that the bond resolution provides. The bonds shall be executed by the manual or facsimile signatures of the officers of the authority designated by the board. The bonds may be sold at public or private sale at the price, in the manner, and at the time determined by the board. Pending preparation of definitive bonds, the authority may issue interim receipts or certificates that the authority shall exchange for the definitive bonds.

AB684,19,24 (4) Any bond resolution may contain provisions, that shall be a part of the contract with the holders of the bonds that are authorized by the bond resolution, regarding any of the following:

AB684,19,25 (a) Pledging or assigning specified assets or revenues of the authority.

AB684,20,2 (b) Setting aside reserves or sinking funds, and the regulation, investment, and disposition of these funds.

AB684,20,4 (c) Limitations on the purpose to which or the investments in which the proceeds of the sale of any issue of bonds may be applied.

AB684,20,8 (d) Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the terms upon which additional bonds may rank on a parity with, or be subordinate or superior to, the bonds authorized by the bond resolution.

AB684,20,9 (e) Funding, refunding, advance refunding, or purchasing outstanding bonds.

AB684,20,12 (f) Procedures by which the terms of any contract with bondholders may be amended, the amount of bonds the holders of which must consent to the amendment, and the manner in which this consent may be given.

AB684,20,15 (g) Defining the acts or omissions to act that constitute a default in the duties of the authority to the bondholders, and providing the rights and remedies of the bondholders in the event of a default.

AB684,20,16 (h) Other matters relating to the bonds that the board considers desirable.

AB684,20,20 (5) Neither the members of the board nor any person executing the bonds is liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance of the bonds, unless the personal liability or accountability is the result of willful misconduct.

AB684,21,4 238.09 Bond security. The authority may secure any bonds issued under this chapter by a trust agreement, trust indenture, indenture of mortgage, or deed of trust by and between the authority and one or more corporate trustees. The bond resolution providing for the issuance of bonds so secured shall pledge some or all of the revenues to be received by the authority, and may contain provisions for protecting and enforcing the rights and remedies of the bondholders that are reasonable and proper and not in violation of law. A bond resolution may contain any other provisions that are determined by the board to be reasonable and proper for the security of the bondholders.

AB684,21,11 238.10 Bonds not public debt. (1) The state is not liable on bonds of the authority and the bonds are not a debt of the state. Each bond of the authority shall contain a statement to this effect on the face of the bond. The issuance of bonds under this chapter does not, directly, indirectly, or contingently, obligate the state or any political subdivision of the state to levy any tax or to make any appropriation for payment of the bonds. Nothing in this section prevents the authority from pledging its full faith and credit to the payment of bonds issued under this chapter.

AB684,21,21 (2) Nothing in this chapter authorizes the authority to create a debt of the state, and all bonds issued by the authority under this chapter are payable, and shall state that they are payable, solely from the funds pledged for their payment in accordance with the bond resolution authorizing their issuance or in any trust indenture or deed of trust executed as security for the bonds. The state is not liable for the payment of the principal of or interest on any bonds of the authority or for the performance of any pledge, mortgage, obligation, or agreement which may be undertaken by the authority. The breach of any pledge, mortgage, obligation, or agreement undertaken by the authority does not impose any pecuniary liability upon the state or any charge upon its general credit or against its taxing power.

AB684,22,3 238.11 State pledge. The state pledges to and agrees with the holders of bonds, and persons that enter into contracts with the authority under this chapter, that the state will not limit or alter the rights vested in the authority by this chapter before the authority has fully met and discharged the bonds, and any interest due on the bonds, and has fully performed its contracts, unless adequate provision is made by law for the protection of the bondholders or those entering into contracts with the authority.

AB684,22,7 238.16 Refunding bonds. (1) The authority may issue bonds to fund or refund any outstanding bond, including the payment of any redemption premium on the outstanding bond and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase, or maturity.

AB684,22,12 (2) The authority may apply the proceeds of any bond issued to fund or refund any outstanding bond to purchase, retire at maturity, or redeem any outstanding bond. The authority may, pending application, place the proceeds in escrow to be applied to the purchase, retirement at maturity, or redemption of any outstanding bond at any time.

AB684,22,15 238.18 Limit on amount of outstanding bonds. The authority may not have outstanding at any one time bonds in an aggregate principal amount exceeding $26,000,000, excluding bonds issued to refund outstanding bonds.

AB684,22,24 238.19 Annual reports. (1) The authority shall keep an accurate account of all of its activities and of all of its receipts and expenditures, and shall annually in January make a report of its activities, receipts, and expenditures to the governor and the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2). The reports shall be in a form approved by the state auditor. The state auditor may investigate the affairs of the authority, may examine the properties and records of the authority, and may prescribe methods of accounting and the rendering of periodical reports in relation to activities undertaken by the authority.

AB684,23,6 (2) The authority, annually on July 1, shall file with the department of administration and the joint legislative council a complete and current listing of all forms, reports, and papers required by the authority to be completed by any person, other than a governmental body, as a condition of obtaining the approval of the authority or for any other reason. The authority shall attach a blank copy of each such form, report, or paper to the listing.

AB684,23,10 238.21 Confidentiality of certain records. The authority shall maintain the confidentiality of records or portions of records consisting of personal or financial information provided by a person seeking a loan, loan guarantee, or other financial assistance from the authority.

AB684,23,12 238.30 Agricultural loan programs; general provisions. (1) Definitions. In this section and ss. 238.32 to 238.38:

AB684,23,13 (a) "Agricultural commodity" has the meaning given in s. 94.67 (2).

AB684,23,23 (b) "Agricultural improvements" means improvements to a farm that are useful for and intended to be used for farming purposes, including the purchase and construction or installation of improvements to land or buildings or other permanent structures, including equipment incorporated into or permanently affixed to the land or buildings or other structures. "Agricultural improvements" includes wind energy conversion facilities that have an output capacity of 2 megawatts or less each, as shown by the nameplate capacity, and facilities for deriving energy from animal waste. "Agricultural improvements" does not include equipment that is not affixed to land or improvements, or additions to equipment that is not affixed to land or improvements.

AB684,23,25 (c) "Agricultural loan programs" means the programs under ss. 238.32 to 238.38.

AB684,24,1 (d) "Eligible borrower" means a person to which all of the following apply:

AB684,24,3 1. The person is a natural person who resides in this state or a partnership or family farm corporation that operates in this state.

AB684,24,6 2. The person's net worth, including the assets and liabilities of the person's spouse and dependents if the person is a natural person, does not exceed $275,000, or $450,000 for the program under s. 238.38, subject to adjustment under sub. (5) (b).

AB684,24,7 3. The person demonstrates a need for the loan.

AB684,24,8 4. The person demonstrates an ability to repay the loan.

AB684,24,16 5. If the person is a natural person, the natural person's name does not appear, and if the person is a corporation, no shareholder's name appears, and, if the person is a partnership, no partner's name appears on the statewide support lien docket under s. 49.854 (2) (b) or, if the name of the natural person, a shareholder, or partner appears on that docket, the natural person, shareholder, or partner provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

AB684,24,17 6. The person satisfies any other requirements prescribed by the authority.

AB684,24,19 (e) "Farm credit service" includes a production credit association, federal land credit association, and agricultural credit association.

AB684,24,21 (f) "Farm purchase assistance loan" means a loan made by a participating lender to an eligible borrower under s. 238.32.

AB684,24,24 (fm) "Livestock" means cattle, horses, swine, sheep, goats, farm-raised deer, as defined in s. 95.001 (1) (ag), poultry, and other animals used or to be used in the production of food, fiber, or other commercial products.

AB684,25,2 (g) "Nameplate capacity" means the designation by a unit's manufacturer of the approximate generating capability of the unit.

AB684,25,7 (h) "Participating lender" means a bank, farm credit service, credit union, savings bank, savings and loan association, or other person, other than a seller under a land contract, that has been approved by the authority to make loans to eligible borrowers under one or more agricultural loan programs and that has entered into a participation agreement with the authority under sub. (2).

AB684,25,9 (i) "Wind energy conversion facility" means any device, such as a windcharger, windmill, or wind turbine, that converts wind energy to a form of usable energy.

AB684,25,18 (2) Participation agreement with lender. A lender seeking to make a loan in which the authority may participate under an agricultural loan program shall apply to the authority for approval. If the lender is approved for making loans under one or more of the agricultural loan programs, the lender and the authority shall enter into a participation agreement that shall provide for the contractual obligations of the lender and the authority with respect to any loan transaction in which the authority participates, the terms and conditions of loans in which the authority participates, and other matters related to the lender's involvement in the agricultural loan programs.

AB684,26,4 (3) Participation in loans. The authority may participate, to the extent provided in ss. 238.32 (2) (a), 238.34 (2), 238.36 (2) (a), and 238.38 (2), in a loan made by a participating lender under an agricultural loan program. Subject to s. 238.36 (2) (b), the interest rate that the authority charges for its portion of a loan shall be less than the interest rate charged by the participating lender. Subject to any requirements under ss. 238.32 to 238.38, the authority may impose repayment or other terms for its portion of a loan that are different from the participating lender's loan terms. The authority shall ensure that it obtains an interest in the participating lender's security for the loan in the same proportion as its participation in the loan. The authority shall ensure that its interest in the security has a higher priority than the participating lender's interest in the security.

AB684,26,7 (4) Fees. The authority shall charge a fee for assistance provided under the agricultural loan programs to cover the costs of administrating the agricultural loan programs, including legal fees.

AB684,26,10 (5) Rules and procedures. The authority shall adopt rules and establish procedures for administering the agricultural loan programs, including rules or procedures related to all of the following:

AB684,26,12 (a) Application procedures for eligible borrowers and for lenders seeking to make loans under the agricultural loan programs.

AB684,26,18 (b) Approval requirements for lenders and additional eligibility requirements for eligible borrowers, including any adjustments in net worth requirements. Any adjustment in net worth requirements shall include, at a minimum, an adjustment based on changes in the index of prices paid by farmers published by the federal department of agriculture. The authority may only adjust net worth requirements if the adjustment is approved by a two-thirds vote of the board.

AB684,26,24 (c) Adjustments in the maximum amount of an agricultural loan that the authority may finance. Any adjustment under this paragraph shall include, at a minimum, an adjustment based on changes in the index of prices paid by farmers published by the federal department of agriculture. The authority may only make an adjustment under this paragraph if the adjustment is approved by a two-thirds vote of the board.

AB684,26,25 (d) The terms of participation agreements under sub. (2).