AB684: Bill Text

AB684,41,5 238.56 Nutrient Environmental Technology Loan Guarantee Program. (1) Definition. In this section, "nutrient management or odor mitigation technology" includes anaerobic digesters and electricity production systems, separators, lagoon covers, and aeration systems, and reception pits, pipes, and pumps required in animal waste processing.

AB684,41,9 (2) Eligible loans. If the authority implements the program under this section, a loan made by a participating lender is eligible for guarantee of collection from the Wisconsin agricultural reserve fund under s. 238.58 if all of the following apply:

AB684,41,11 (a) The loan is made to finance nutrient management or odor mitigation technology on a farm.

AB684,41,14 (b) The rate of interest on the loan, including any origination fees or other charges, is fixed at a rate determined by the participating lender and approved by the authority.

AB684,41,16 (c) The participating lender obtains a security interest in assets of the borrower sufficient to secure repayment of the loan.

AB684,41,18 (d) The proceeds of the loan are not applied to the outstanding balance of any other loan.

AB684,41,21 (e) The participating lender considers the borrower's assets, cash flow, and managerial ability sufficient to preclude voluntary or involuntary liquidation for the loan term granted by the participating lender.

AB684,41,23 (f) The participating lender agrees to the percentage of guarantee established for the loan by the authority.

AB684,41,25 (g) The term of the loan is not longer than the maximum term established by the authority.

AB684,42,3 (h) The borrower satisfies requirements concerning the maximum amount of outstanding guaranteed principal of all loans guaranteed under this section and any other requirements specified by the authority for the program under this section.

AB684,42,5 (3) Guarantee. The authority may guarantee repayment of no more than 90 percent of the principal of any loan that is eligible for guarantee under sub. (2).

AB684,42,9 238.58 Wisconsin agricultural reserve fund. (1) Establishment of fund. There is established under the jurisdiction and control of the authority, for the purpose of providing funds for guaranteeing loans, a Wisconsin agricultural reserve fund, consisting of all of the following:

AB684,42,11 (a) Moneys appropriated to the authority or received by the authority for the Wisconsin agricultural reserve fund from any other source.

AB684,42,13 (b) Any income from investment of money in the Wisconsin agricultural reserve fund by the authority.

AB684,42,15 (c) To be used for guaranteeing loans under s. 238.54, fees collected under s. 238.54 (4).

AB684,42,21 (2) Program administration. (a) The authority may enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association or other person who wishes to participate in a loan program guaranteed by the Wisconsin agricultural reserve fund. The authority may determine all of the following, consistent with the terms of the specific loan guarantee program:

AB684,42,22 1. The form of the agreement.

AB684,42,24 2. Any conditions upon which the authority may refuse to enter into such an agreement.

AB684,43,2 3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan.

AB684,43,5 (c) The authority may not use any moneys other than those in the Wisconsin agricultural reserve fund for programs guaranteed by the Wisconsin agricultural reserve fund.

AB684,43,9 (d) The authority may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the loan guarantee program, to advise the authority about lending requirements and issues related to a loan guarantee program.

AB684,43,13 (3) Loan guarantees; increases or decreases. (a) Except as provided in par. (b), the total principal amount or total outstanding guaranteed principal amount of all loans that the authority may guarantee under the programs guaranteed by funds from the Wisconsin agricultural reserve fund may not exceed $25,000,000.

AB684,43,25 (b) The authority may request the joint committee on finance to take action under s. 13.10 to permit the authority to increase or decrease the total principal amount or total outstanding guaranteed principal amount of loans that it may guarantee under the programs guaranteed by the Wisconsin agricultural reserve fund and the joint committee on finance may take that action. Included with its request, the authority shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under the aggregate of the programs guaranteed by funds from the Wisconsin agricultural reserve fund, and the balance remaining in the Wisconsin agricultural reserve fund on that date after deducting those amounts, if the increase or decrease is approved, with those amounts and the balance remaining, if the increase or decrease is not approved.

AB684,44,9 (3m) Extension of loan guarantee program. When the authority prepares a fiscal estimate under s. 13.093 (2) (a) with respect to any bill that extends a program that is guaranteed by funds from the Wisconsin agricultural reserve fund, the authority shall include in its fiscal estimate a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under all of the programs guaranteed by funds from the Wisconsin agricultural reserve fund, and the balance remaining in the Wisconsin agricultural reserve fund on that date after deducting those amounts, if the program is extended, with those amounts and the balance remaining if the program is not extended.

AB684,44,13 (4) Balance transfer. (a) Annually on June 30, until no balance remains, the authority shall transfer to the general fund any balance remaining in the Wisconsin agricultural reserve fund on that date, after deducting an amount sufficient for all of the following:

AB684,44,15 1. To pay all outstanding claims under the programs guaranteed by funds from the Wisconsin agricultural reserve fund.

AB684,44,19 2. To fund guarantees under all of the programs guaranteed by funds from the Wisconsin agricultural reserve fund at a ratio of $1 of reserve funding to $4.50 of total outstanding principal and outstanding guaranteed principal that the authority may guarantee under all of those programs.

AB684,44,22 (b) Annually on August 31, the executive director of the authority shall provide to the secretary of administration and to the joint committee on finance a signed statement that includes all of the following information:

AB684,44,25 1. The amounts required to pay outstanding claims and to fund guarantees under each of the programs guaranteed by funds from the Wisconsin agricultural reserve fund on that date.

AB684,45,1 2. An explanation of how each amount under subd. 1. was determined.

AB684,45,4 3. The amount of the balance, if any, that remains in the Wisconsin agricultural reserve fund after deducting the amounts under subd. 1. and that will be transferred to the general fund under par. (a).

AB684,45,6 4. A projection of what the amounts under subds. 1. and 3. will be on June 30 in each of the next 2 years.

AB684,45,10 (4m) Limitation on loan guarantees. The authority shall regularly monitor the cash balance in the Wisconsin agricultural reserve fund. The authority shall ensure that the cash balance in the fund is sufficient for the purposes specified in sub. (4) (a) 1. and 2.

AB684,45,17 (5) Annual report. On or before November 1 annually, the authority shall submit to the chief clerk of each house of the legislature for distribution under s. 13.172 (2) and to the joint committee on finance a report on the number and total dollar amount of guaranteed loans under each of the programs guaranteed by the Wisconsin agricultural reserve fund, the default rate on the loans, and any other information on a program guaranteed by the Wisconsin agricultural reserve fund that the authority determines is significant.

AB684,45,21 (6) Moral obligation. Recognizing its moral obligation, the legislature expresses its expectation that, if called upon to do so, it will make an appropriation to meet all demands for funds guaranteed by the Wisconsin agricultural reserve fund.

AB684,45,25 238.65 Agricultural business development; additional powers. (1) The authority, in consultation with the department of commerce, may implement any of the following programs for the purpose of promoting the development of agricultural business in this state:

AB684,46,2 (a) A revolving loan fund program pursuant to which the authority makes loans to finance agricultural businesses.

AB684,46,6 (b) An equity financing program pursuant to which the authority acts as an intermediary to facilitate equity investments in agricultural businesses. This paragraph does not permit the authority to invest its own moneys in any agricultural business.

AB684,46,9 (c) A conservation trading program pursuant to which the authority acts as an intermediary in the aggregation and trading of environmental credits related to agricultural production.

AB684,46,12 (2) By July 1 annually, the authority shall file a report with the department of commerce describing the financial condition of and level of participation in any program under sub. (1).

AB684, s. 39 Section 39. 281.75 (4) (b) 3. of the statutes is amended to read:

AB684,46,14 281.75 (4) (b) 3. An authority created under ch. 231, 233, 234, or 237, or 238.

AB684, s. 40 Section 40. 285.59 (1) (b) of the statutes is amended to read:

AB684,46,23 285.59 (1) (b) "State agency" means any office, department, agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law which is entitled to expend moneys appropriated by law, including the legislature and the courts, the Wisconsin Housing and Economic Development Authority, the Bradley Center Sports and Entertainment Corporation, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Rural Finance Authority, and the Wisconsin Health and Educational Facilities Authority.

AB684, s. 41 Section 41. 560.032 (1) of the statutes is amended to read:

AB684,47,7 560.032 (1) Allocation. The department, by rule, shall establish under 26 USC 146 and administer a system for the allocation of the volume cap on the issuance of private activity bonds, as defined under 26 USC 141 (a), among all municipalities, as defined in s. 67.01 (5), and any corporation formed on behalf of those municipalities, and among this state, the Wisconsin Health and Educational Facilities Authority, the Wisconsin Rural Finance Authority, and the Wisconsin Housing and Economic Development Authority.

AB684, s. 42 Section 42. 600.01 (1) (b) 7m. of the statutes is created to read:

AB684,47,10 600.01 (1) (b) 7m. Guarantees of the Wisconsin Rural Finance Authority under ss. 238.50, 238.52, and 238.54.

AB684, s. 43 Section 43. 706.11 (1) (c) 2. of the statutes is amended to read:

AB684,47,15 706.11 (1) (c) 2. The Wisconsin Health and Educational Facilities Authority created under ch. 231, the Wisconsin Housing and Economic Development Authority created under ch. 234, the Wisconsin Rural Finance Authority created under ch. 238, or any other authority created by state law.

AB684, s. 44 Section 44. Nonstatutory provisions.

AB684,47,20 (1) Terms of initial members of board. Notwithstanding the length of terms specified for the members of the board of the Wisconsin Rural Finance Authority under section 238.02 (1) of the statutes, as created by this act, the initial members of the board shall be appointed for the following terms:

AB684,47,23 (a) One member appointed under section 238.02 (1) (a) 1. of the statutes and one member appointed under section 238.02 (1) (a) 2. of the statutes, for terms expiring on July 1, 2005.

AB684,48,3 (b) One member appointed under section 238.02 (1) (a) 1. of the statutes and one member appointed under section 238.02 (1) (a) 3. of the statutes, for terms expiring on July 1, 2006.

AB684,48,6 (c) One member appointed under section 238.02 (1) (a) 2. of the statutes and one member appointed under section 238.02 (1) (a) 3. of the statutes, for terms expiring on July 1, 2007.

AB684,48,9 (d) One member appointed under section 238.02 (1) (a) 1. of the statutes and one member appointed under section 238.02 (1) (a) 2. of the statutes, for terms expiring on July 1, 2008.

AB684, s. 45 Section 45. Effective dates. This act takes effect on the day after publication, except as follows:

AB684,48,14 (1) The treatment of sections 234.66 (2), 234.90 (4), 234.907 (3), and 234.91 (5) (a) of the statutes takes effect on the first day of the 25th month beginning after publication.

AB684,48,15 (End)