SB62: Bill Text

SB62, s. 770 Section 770. 234.59 (1) (j) of the statutes is amended to read:

SB62,318,6 234.59 (1) (j) "Principal residence" means an eligible residential real property in this state which that an applicant maintains as a full-time residence, but does not use as a vacation home or for trade or business purposes.

SB62, s. 771 Section 771. 234.59 (2) (intro.) of the statutes is amended to read:

SB62,318,11 234.59 (2) Powers and duties of the authority. (intro.) The authority shall establish and administer a homeownership mortgage loan program to encourage homeownership and to facilitate the acquisition or rehabilitation of eligible property by applicants. To implement the program, the authority:

SB62, s. 772 Section 772. 234.59 (3) (c) of the statutes is amended to read:

SB62,318,19 234.59 (3) (c) The authority shall notify an eligible authorized lender if a person's name appears on the statewide support lien docket under s. 49.854 (2) (b). An eligible authorized lender may not make a loan to an applicant if it receives notification under this paragraph concerning the applicant, unless the applicant provides to the lender 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).

SB62, s. 773 Section 773. 234.592 of the statutes is created to read:

SB62,318,22 234.592 Qualified subprime loan refinancing. (1) Definitions. In this section:

SB62,318,23 (a) "Authorized lender" has the meaning given in s. 234.59 (1) (a).

SB62,318,24 (b) "Eligible property" has the meaning given in s. 234.59 (1) (d) 1.

SB62,318,25 (c) "Principal residence" has the meaning given in. s. 234.59 (1) (j).

SB62,319,3 (d) "Qualified subprime loan" means an adjustable rate single-family residential mortgage loan made after December 31, 2001, and before January 1, 2008.

SB62,319,7 (2) Powers and duties of the authority. The authority shall establish and administer a qualified subprime loan refinancing program to encourage homeownership and to facilitate the retention of eligible property by applicants. To implement the program, the authority:

SB62,319,10 (a) May finance the acquisition or replacement of a qualified subprime loan and may enter into contracts permitting an authorized lender to finance the acquisition or replacement of a qualified subprime loan or both.

SB62,319,11 (b) Shall maintain a current list of authorized lenders.

SB62,319,13 (c) May enter into agreements to insure or provide additional security for loans or bonds or notes issued under s. 234.60.

SB62,319,18 (3) Loan conditions. (a) Except as provided in par. (b), the authority may finance the acquisition or replacement of or enter into contracts permitting an authorized lender to finance the acquisition or replacement of an existing mortgage given by an applicant on an eligible property only if all of the following conditions are satisfied:

SB62,319,20 1. The eligible property is and will remain the principal residence of the applicant.

SB62,319,22 2. The existing mortgage was originally financed through a qualified subprime loan and has not subsequently been refinanced.

SB62,319,25 3. The authority makes a determination that the mortgage described in subd. 2. will be reasonably likely to cause financial hardship to the applicant if not refinanced.

SB62,320,2 4. The term of any refinancing agreement entered into under this paragraph does not exceed 30 years.

SB62,320,6 5. The monthly payments to be made by an applicant under an agreement entered into under this paragraph include principal, interest, property taxes, and insurance. In this subdivision, "insurance" includes mortgage insurance, homeowner's insurance, and, if applicable, flood insurance.

SB62,320,8 6. The authority complies with special rules for subprime refinancing established under 26 USC 143 (k) (12).

SB62,320,13 (b) The authority may not enter into an agreement under this subsection if the applicant's name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the applicant 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).

SB62, s. 774 Section 774. 234.60 (title) of the statutes is amended to read:

SB62,320,16 234.60 (title) Bonds for homeownership mortgage loans and qualified subprime loan refinancing.

SB62, s. 775 Section 775. 234.60 (1) of the statutes is amended to read:

SB62,320,19 234.60 (1) The authority may issue its bonds or notes to fund homeownership mortgage loans or the refinancing of qualified subprime loans under s. 234.592.

SB62, s. 776 Section 776. 234.60 (2) of the statutes is amended to read:

SB62,320,22 234.60 (2) The limitations in ss. 234.18, 234.40, 234.50, 234.61, 234.63, and 234.65 do not apply to bonds or notes issued under this section.

SB62, s. 777 Section 777. 234.60 (5) (c) of the statutes is created to read:

SB62,321,3 234.60 (5) (c) The secretary of administration shall determine the date after which no bond or note may be issued under this section for the purpose of financing the acquisition or replacement of an existing mortgage under s. 234.592.

SB62, s. 778 Section 778. 234.60 (9) of the statutes is amended to read:

SB62,321,7 234.60 (9) The executive director of the authority shall make every effort to encourage participation in the homeownership mortgage loan program and the qualified subprime loan refinancing program by women and minorities.

SB62, s. 779 Section 779. 234.605 of the statutes is created to read:

SB62,321,10 234.605 Homeowner eviction and lien protection program. (1) In this section:

SB62,321,11 (a) "Eligible property" has the meaning given in s. 234.59 (1) (d) 1.

SB62,321,14 (b) "Lender" means any banking institution, savings bank, savings and loan association, or credit union organized under the laws of this or any other state or of the United States having an office in this state.

SB62,321,16 (c) "Mortgage loan" means a loan secured by a first lien real estate mortgage on the eligible property of an applicant.

SB62,321,20 (2) Subject to the approval of all members of the authority, the authority may establish and administer a homeowner eviction and lien protection program to encourage the refinancing of mortgage loans by lenders in order to facilitate the retention of eligible property by persons and families.

SB62,321,25 (3) (a) Except as provided in par. (b), to implement the program, the authority may enter into agreements with lenders regarding the refinancing of a mortgage loan and may make or participate in the making and enter into commitments for the making of loans to refinance a mortgage loan if the authority first determines all of the following:

SB62,322,5 1. The applicant has made a reasonable effort to refinance the mortgage loan with the existing lender or loan servicer or with an organization approved by the authority, but the applicant has been unsuccessful in his or her effort. The authority shall designate and maintain a current list of organizations approved under this subdivision.

SB62,322,7 2. The lender will not refinance the mortgage loan in the absence of an agreement with the authority.

SB62,322,12 (b) The authority may not enter into an agreement with a lender under this section if the applicant's name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the applicant 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).

SB62,322,17 (4) The authority shall submit a quarterly report to the joint committee on finance. The report shall summarize the progress and performance of the program established under this section. The cochairpersons of the joint committee on finance may convene a meeting of the committee at any time to review or dissolve the program established under this section.

SB62, s. 780 Section 780. 234.61 (1) of the statutes is amended to read:

SB62,323,2 234.61 (1) Upon the authorization of the department of health services, the authority may issue bonds or notes and make loans for the financing of housing projects which are residential facilities as defined in s. 46.28 (1) (d) and the development costs of those housing projects, if the department of health services has approved the residential facilities for financing under s. 46.28 (2). The limitations in ss. 234.18, 234.40, 234.50, 234.60, 234.63, and 234.65 do not apply to bonds or notes issued under this section. The definition of "nonprofit corporation" in s. 234.01 (9) does not apply to this section.

SB62, s. 781 Section 781. 234.63 of the statutes is repealed.

SB62, s. 782 Section 782. 321.60 (1) (a) 12. of the statutes is amended to read:

SB62,323,8 321.60 (1) (a) 12. A license or certificate of registration issued by the department of financial institutions, or a division of it, under ss. 138.09, 138.12, 217.06, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, 224.725, or 224.93 or subch. IV of ch. 551.

SB62, s. 783 Section 783. 422.501 (2) (b) 8. of the statutes is amended to read:

SB62,323,12 422.501 (2) (b) 8. A person registered licensed as a mortgage banker, mortgage loan originator, or mortgage broker under s. 224.72 or 224.725 if the person is acting within the course and scope of that registration the license.

SB62, s. 784 Section 784. 428.202 (6) of the statutes is renumbered 428.202 (9) and amended to read:

SB62,323,16 428.202 (9) "Loan Mortgage loan originator" has the meaning given in s. 224.71 (1r) (6).

SB62, s. 785 Section 785. 428.203 (9) (title) of the statutes is amended to read:

SB62,323,18 428.203 (9) (title) Unregistered Unlicensed mortgage bankers and brokers.

SB62, s. 786 Section 786. 428.204 of the statutes is amended to read:

SB62,323,23 428.204 False statements. No lender, licensed lender, mortgage loan originator, mortgage banker, or mortgage broker may knowingly make, propose, or solicit fraudulent, false, or misleading statements on any document relating to a covered loan.

SB62, s. 787 Section 787. 428.206 of the statutes is amended to read:

SB62,324,5 428.206 Recommending default. No lender, licensed lender, mortgage loan originator, mortgage banker, or mortgage broker may recommend or encourage an individual to default on an existing loan or other obligation before and in connection with the making of a covered loan that refinances all or any portion of that existing loan or obligation.

SB62, s. 788 Section 788. 452.01 (3) (g) of the statutes is amended to read:

SB62,324,8 452.01 (3) (g) A person registered licensed as a mortgage banker under s. 224.72 who does not engage in activities described under sub. (2).

SB62, s. 789 Section 789. 560.205 (1) (intro.) of the statutes is amended to read:

SB62,324,18 560.205 (1) Angel investment tax credits. (intro.) The department shall implement a program to certify businesses for purposes of s. 71.07 (5d). A business desiring certification shall submit an application to the department in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the department may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). Unless otherwise provided under the rules of the department, a business may be certified under this subsection, and may maintain such certification, only if the business satisfies all of the following conditions:

SB62, s. 790 Section 790. 560.205 (1) (f) of the statutes is repealed and recreated to read:

SB62,324,21 560.205 (1) (f) It has the potential for increasing jobs in this state, increasing capital investment in this state, or both, and any of the following apply:

SB62,324,23 1. It is engaged in, or has committed to engage in, innovation in any of the following:

SB62,324,25 a. Manufacturing, biotechnology, nanotechnology, communications, agriculture, or clean energy creation or storage technology.

SB62,325,4 b. Processing or assembling products, including medical devices, pharmaceuticals, computer software, computer hardware, semiconductors, any other innovative technology products, or other products that are produced using manufacturing methods that are enabled by applying proprietary technology.

SB62,325,5 c. Services that are enabled by applying proprietary technology.

SB62,325,9 2. It is undertaking pre-commercialization activity related to proprietary technology that includes conducting research, developing a new product or business process, or developing a service that is principally reliant on applying proprietary technology.

SB62, s. 791 Section 791. 560.205 (1) (g) of the statutes is amended to read:

SB62,325,16 560.205 (1) (g) It is not primarily engaged in real estate development, insurance, banking, lending, lobbying, political consulting, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail trade, leisure, hospitality, transportation, or construction, except construction of power production plants that derive energy from a renewable resource, as defined in s. 196.378 (1) (h).

SB62, s. 792 Section 792. 560.205 (1) (k) of the statutes is amended to read:

SB62,325,20 560.205 (1) (k) It For taxable years beginning before January 1, 2008, it has not received more than $1,000,000 in investments that have qualified for tax credits under s. 71.07 (5d).

SB62, s. 793 Section 793. 560.205 (1) (kn) of the statutes is created to read:

SB62,325,25 560.205 (1) (kn) For taxable years beginning after December 31, 2007 and before January 1, 2011, it has not received more than $4,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.

SB62, s. 794 Section 794. 560.205 (1) (L) of the statutes is created to read:

SB62,326,4 560.205 (1) (L) For taxable years beginning after December 31, 2010, it has not received more than $8,000,000 in investments that have qualified for tax credits under ss. 71.07 (5b) and (5d), 71.28 (5b), 71.47 (5b), and 76.638.

SB62, s. 795 Section 795. 560.205 (2) of the statutes is amended to read:

SB62,326,19 560.205 (2) Early stage seed investment tax credits. The department shall implement a program to certify investment fund managers for purposes of ss. 71.07 (5b), 71.28 (5b), and, 71.47 (5b), and 76.638. An investment fund manager desiring certification shall submit an application to the department. The investment fund manager shall specify in the application the investment amount that the manager wishes to raise and the department may certify the manager and determine the amount that qualifies for purposes of ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638. In determining whether to certify an investment fund manager, the department shall consider the investment fund manager's experience in managing venture capital funds, the past performance of investment funds managed by the applicant, the expected level of investment in the investment fund to be managed by the applicant, and any other relevant factors. The department may certify only investment fund managers that commit to consider placing investments in businesses certified under sub. (1).

SB62, s. 796 Section 796. 560.205 (3) (d) of the statutes is amended to read:

SB62,327,19 560.205 (3) (d) Rules. The department of commerce, in consultation with the department of revenue, shall promulgate rules to administer this section. The rules shall further define "bona fide angel investment" for purposes of s. 71.07 (5d) (a) 1. The rules shall limit the aggregate amount of tax credits under s. 71.07 (5d) that may be claimed for investments in businesses certified under sub. (1) at $3,000,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $5,500,000 per calendar year for calendar years beginning after December 31, 2007, and before January 1, 2011, and $18,000,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also limit the aggregate amount of the tax credits under ss. 71.07 (5b), 71.28 (5b), and 71.47 (5b), and 76.638 that may be claimed for investments paid to fund managers certified under sub. (2) at $3,500,000 per calendar year for calendar years beginning after December 31, 2004, and before January 1, 2008, $6,000,000 per calendar year for calendar years beginning after December 31, 2007 , and before January 1, 2011, and $18,500,000 per calendar year for calendar years beginning after December 31, 2010, plus, for taxable years beginning after December 31, 2010, an additional $250,000 for tax credits that may be claimed for investments in nanotechnology businesses certified under sub. (1). The rules shall also provide that, for calendar years beginning after December 31, 2007, no person may receive a credit under ss. 71.07 (5b) and (5d), 71.28 (5b), or 71.47 (5b), or 76.638 unless the person's investment is kept in a certified business, or with a certified fund manager, for no less than 3 years.

SB62, s. 797 Section 797. 560.205 (3) (e) of the statutes is created to read:

SB62,328,7 560.205 (3) (e) Transfer. A person who is eligible to claim a credit under s. 71.07 (5b), 71.28 (5b), 71.47 (5b), or 76.638 may sell or otherwise transfer the credit to another person who is subject to the taxes or fees imposed under s. 71.02, 71.23, 71.47, or subch. III of ch. 76, if the person receives prior authorization from the investment fund manager and the manager then notifies the department of commerce and the department of revenue of the transfer and submits with the notification a copy of the transfer documents. No person may sell or otherwise transfer a credit as provided in this paragraph more than once in a 12-month period. The department may charge any person selling or otherwise transferring a credit under this paragraph a fee equal to 1 percent of the credit amount sold or transferred. The department shall deposit all fees collected under this paragraph in the appropriation account under s. 20.143 (1) (gm).

SB62, s. 798 Section 798. 560.207 (1) of the statutes is amended to read:

SB62,328,12 560.207 (1) The department of commerce shall implement a program to certify taxpayers, including taxpayers who are members of dairy cooperatives, as eligible for the dairy manufacturing facility investment credit under ss. 71.07 (3p), 71.28 (3p), and 71.47 (3p).

SB62, s. 799 Section 799. 560.207 (2) of the statutes is amended to read:

SB62,328,25 560.207 (2) If the department of commerce certifies a taxpayer under sub. (1), the department of commerce shall determine the amount of credits to allocate to that taxpayer. The total amount of dairy manufacturing facility investment credits allocated to taxpayers in fiscal year 2007-08 may not exceed $600,000 and the total amount of dairy manufacturing facility investment credits allocated to taxpayers who are not members of dairy cooperatives in fiscal year 2008-09, and in each fiscal year thereafter, may not exceed $700,000. The total amount of dairy manufacturing facility investment credits allocated to taxpayers who are members of dairy cooperatives in fiscal year 2009-10 may not exceed $600,000 and the total amount of dairy manufacturing facility investment credits allocated to taxpayers who are members of dairy cooperatives in fiscal year 2010-11, and in each fiscal year thereafter, may not exceed $700,000.