SB148: Bill Text

SB148,154,25 Forward Wisconsin Development Authority

SB148,155,1 Subchapter i

SB148,155,2 general provisions

SB148,478 Section 478. 235.001 of the statutes is created to read:

SB148,155,12 235.001 Legislative declaration. The legislature determines that the provision of assistance by state agencies to the authority, all appropriations of funds to the authority, and all moral obligation pledges under this chapter serve a statewide public purpose by assisting the development of housing in this state, especially housing for persons and families of low and moderate income, and by encouraging economic development, reducing unemployment, and bringing needed capital into the state for the benefit and welfare of people throughout the state. The legislature reaffirms its declarations in chapter 287, laws of 1971, section 1, with respect to the housing-related purposes of the authority.

SB148,479 Section 479. 235.01 of the statutes is created to read:

SB148,155,14 235.01 Definitions. In this chapter:

SB148,155,15 (1) "Authority" means the Forward Wisconsin Development Authority.

SB148,155,16 (2) "Board" means the board of directors of the authority.

SB148,155,17 (3) "Housing-related purpose" means any of the following:

SB148,155,20 (a) Any program or project that the authority develops, implements, or administers, or any power the authority exercises or duty or function it carries out, pursuant to s. 235.013 (1) or subch. IV.

SB148,155,25 (b) Any program or project that the Wisconsin Housing and Economic Development Authority developed, implemented, or administered under subch. I of ch. 234, 2013 stats., including any power exercised or duty or function carried out with respect to the program or project, that the authority has assumed as successor to the Wisconsin Housing and Economic Development Authority.

SB148,156,3 (c) Any other activity, function, or cost, including operational costs, of the authority that the authority determines is necessary with respect to a program, project, power, duty, or function specified in par. (a) or (b).

SB148,480 Section 480. 235.011 of the statutes is created to read:

SB148,156,13 235.011 Creation and organization. (1) There is created a public body corporate and politic, to be known as the "Forward Wisconsin Development Authority." The members of the board shall consist of 8 public members nominated by the governor, and with the advice and consent of the senate appointed, to serve 4-year terms; 2 members appointed by the speaker of the assembly, consisting of one majority and one minority party representative to the assembly, appointed as are the members of standing committees in the assembly, and 2 members appointed by the senate majority leader, consisting of one majority and one minority party senator, appointed as are members of standing committees in the senate.

SB148,156,17 (2) Seven members of the board constitutes a quorum for the purpose of conducting its business and exercising its powers and for all other purposes. Action may be taken by the board upon a vote of a majority of a quorum. The board shall elect a chairperson.

SB148,156,19 (3) A vacancy on the board shall be filled in the same manner as the original appointment to the board for the remainder of the unexpired term.

SB148,156,22 (4) (a) A chief executive officer shall be nominated by the governor, approved by the board, and with the advice and consent of the senate appointed, to serve at the pleasure of the governor.

SB148,156,24 (b) A chief operating officer shall be nominated by the governor, and with the approval of the board appointed, to serve at the pleasure of the governor.

SB148,157,4 (c) The board may delegate to the chief executive officer and chief operating officer any powers and duties the board considers proper. The chief executive officer and chief operating officer shall receive such compensation as may be determined by the board.

SB148,157,7 (d) The governor shall coordinate with the chief executive officer as if the chief executive officer were the secretary of a department in the executive branch of state government who is appointed by the governor.

SB148,157,10 (5) All powers and duties assigned to the authority under this chapter shall be exercised or carried out by the board, unless the board delegates the power or duty to an employee of the authority or a committee established by the board.

SB148,157,14 (6) The authority shall continue in existence until terminated by law, but no such law shall take effect while the authority has obligations outstanding. Upon termination, all assets of the authority shall transfer to the state or as provided otherwise by law.

SB148,481 Section 481. 235.012 of the statutes is created to read:

SB148,157,18 235.012 Powers of the authority. The authority shall have all the powers necessary or convenient to carry out the purposes and provisions of this chapter. In addition to all other powers granted the authority by law, the authority may:

SB148,157,20 (1) Adopt, amend, and repeal any bylaws, policies, and procedures for the regulation of its affairs and the conduct of its business.

SB148,157,21 (2) Have a seal and alter the seal at pleasure.

SB148,157,22 (3) Maintain offices.

SB148,157,23 (4) Sue and be sued.

SB148,157,25 (5) Accept gifts, grants, loans, or other contributions and aid from private or public sources.

SB148,158,2 (6) Establish the authority's annual budget and monitor the fiscal management of the authority.

SB148,158,3 (7) Make equity investments.

SB148,158,5 (8) Purchase and sell, and enter into commitments for the purchase or sale of, collateral, mortgages, and securities.

SB148,158,7 (9) Make and execute contracts and any other instrument necessary or convenient for the authority's operations and financing.

SB148,158,9 (10) Employ any officers, agents, employees, and special advisors that it may require and determine their qualifications, duties, and compensation.

SB148,158,10 (11) Issue notes, bonds, and any other obligations.

SB148,158,11 (12) Make, purchase, and sell loans and provide grants.

SB148,158,12 (13) Incur debt.

SB148,158,13 (14) Procure insurance.

SB148,158,17 (15) Enter into agreements regarding compensation, space, and other administrative matters as are necessary to operate offices in other states and foreign countries. Such agreements shall be subject to the approval of the secretary of administration.

SB148,158,19 (16) Agree and comply with any conditions attached to federal financial assistance.

SB148,158,21 (17) Lease or own real or personal property and accept federal funds for and participate in federal housing or other federal programs.

SB148,158,23 (18) Establish and maintain one or more corporations, limited liability companies, partnerships, or other entities organized under the laws of this state.

SB148,159,3 (19) Invest any funds held in reserve or sinking funds or any moneys not required for immediate use or disbursement at the discretion of the authority in such investments as may be lawful for fiduciaries in this state.

SB148,482 Section 482. 235.013 of the statutes is created to read:

SB148,159,6 235.013 Duties of the authority; mission. The authority, in order to carry out its public purposes, shall do all of the following:

SB148,159,12 (1) Develop, implement, and administer housing programs and projects to provide housing and related support, expertise, and assistance to persons in Wisconsin; to promote home ownership in Wisconsin; and to provide single and multifamily housing to persons and families of low and moderate income in Wisconsin. The board may also develop and implement any other programs and projects related to housing in Wisconsin.

SB148,159,17 (2) Develop, implement, and administer economic development programs to provide business support and expertise and financial assistance to companies that are investing and creating jobs in Wisconsin and to support new business start-ups and business expansion and growth in Wisconsin. The board may also develop and implement any other programs related to economic development in Wisconsin.

SB148,483 Section 483. 235.0255 (2) of the statutes is created to read:

SB148,159,21 235.0255 (2) The authority may not issue a note or bond that is secured by a capital reserve fund unless the authorizing resolution of the board specifies that the note or bond is secured by a capital reserve fund.

SB148,484 Section 484. 235.028 of the statutes is created to read:

SB148,160,7 235.028 Access to certain information. Notwithstanding s. 235.0279, the authority shall withhold from access under s. 19.35 (1) all information that is stored to a customer relationship management system maintained by the authority by a person other than the authority, including any other state authority or state agency, federal or local governmental unit, or economic development organization. The person storing the information to the customer relationship management system remains the custodian of the information while it is in the custody of the authority, and access to that information shall be determined by that person and in accordance with law. Any information stored to such a system by the authority remains subject to s. 235.0279.

SB148,485 Section 485. Subchapter II (title) of chapter 235 [precedes 235.03] of the statutes is created to read:

SB148,160,10 chapter 235

SB148,160,11 Subchapter iI

SB148,160,12 Economic Development

SB148,486 Section 486. 235.03 (3) (ad), (ah), (ap) and (at) of the statutes are created to read:

SB148,160,20 235.03 (3) (ad) That each recipient of a grant or loan under the program of at least $500,000 shall engage an independent certified public accountant to perform procedures, approved by the authority and consistent with applicable professional standards of the American Institute of Certified Public Accountants, to determine whether the grant or loan funds and any matching cash or in-kind match were expended in accordance with the grant or loan contract.

SB148,160,22 (ah) That each recipient make available for inspection the documents supporting the attestation submitted under par. (a).

SB148,160,24 (ap) That the contract with each grant or loan recipient shall include the requirements under pars. (a) to (ah).

SB148,161,3 (at) The requirements of pars. (a) to (ap) do not apply to a department, as defined in s. 15.01 (5), an independent agency, as defined in s. 15.01 (9), an authority, as defined in s. 16.41 (4), or the University of Wisconsin System.

SB148,487 Section 487. 235.04 of the statutes is created to read:

SB148,161,11 235.04 Economic development capital reserve funds. (1) In this section, "capital reserve fund requirement" means, as of any particular date of computation, an amount of money, as provided in the resolutions of the board authorizing the bonds with respect to which a capital reserve fund is established under this section, which amount shall not exceed the maximum annual debt service on those bonds for that fiscal year or any future fiscal year of the authority secured in whole or in part by the capital reserve fund.

SB148,161,18 (2) The authority may establish one or more capital reserve funds to secure its bonds issued in connection with its economic development programs, and shall pay into each such capital reserve fund any moneys appropriated and made available by the state for the purposes of such fund, any proceeds of sale of notes or bonds, to the extent provided in the resolution of the board authorizing the issuance thereof, and any other moneys made available to the authority for the purpose of such fund from any other source.

SB148,162,7 (3) All moneys held in any capital reserve fund established under this section, except as otherwise specifically provided, shall be used, as required, solely for the payment of the principal of bonds of the authority secured in whole or in part by such fund or of the sinking fund payments mentioned in this section with respect to such bonds, the purchase or redemption of such bonds, the payment of interest on such bonds, or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity; but, if moneys in such fund at any time are less than the capital reserve fund requirement established for such fund as provided in this section, the authority shall not use such moneys for any optional purchase or optional redemption of such bonds. Any income or interest earned by, or increment to, any capital reserve fund established under this section due to the investment thereof may be transferred by the authority to other funds or accounts of the authority to the extent such transfer does not reduce the amount of such capital reserve fund below the capital reserve fund requirement for such fund.

SB148,162,16 (4) (a) The authority shall not at any time issue bonds, secured in whole or in part by a capital reserve fund established under this section if upon the issuance of the bonds, the amount in the capital reserve fund will be less than the capital reserve fund requirement of the capital reserve fund, unless the authority, at the time of issuance of the bonds, deposits in the capital reserve fund from the proceeds of the bonds to be issued, or from other sources, an amount which, together with the amount then in the capital reserve fund, will not be less than the capital reserve fund requirement for the capital reserve fund. The annual debt service for any fiscal year is the amount of money equal to the aggregate of all of the following:

SB148,162,18 1. All interest payable during the fiscal year on all bonds secured in whole or in part by the capital reserve fund outstanding on the date of computation.

SB148,162,20 2. The principal amount of all bonds described in subd. 1. outstanding on the date of computation which mature during the fiscal year.

SB148,162,23 3. All amounts specified in any resolution of the board authorizing any of the bonds described in subd. 1. as payable during the fiscal year as a sinking fund payment with respect to any of the bonds which mature after the fiscal year.

SB148,163,7 (b) The annual debt service calculation made under par. (a) shall be calculated on the assumption that the bonds will after the date of computation cease to be outstanding by reason, but only by reason, of the payment of bonds when due, and the payment when due and application in accordance with the resolution authorizing those bonds, of all of the sinking fund payments payable at or after the date of computation. However, in computing the annual debt service for any fiscal year, bonds considered to have been paid in accordance with the defeasance provisions of the resolution of the board authorizing the issuance thereof shall not be included in bonds outstanding on the date of computation.

SB148,163,24 (5) To assure the continued operation and solvency of the authority for the carrying out of the public purposes of this subchapter and subch. III, the authority shall accumulate in each capital reserve fund established under this section an amount equal to the capital reserve fund requirement for such fund. If at any time the capital reserve fund requirement for any capital reserve fund established under this section exceeds the amount of such capital reserve fund, the chairperson of the board shall certify to the secretary of administration, the governor, and the joint committee on finance the amount necessary to restore such capital reserve fund to an amount equal to the capital reserve fund requirement in respect thereto. If such certification is received by the secretary of administration in an even-numbered year prior to the completion of the budget compilation under s. 16.43, the secretary shall include the certified amount in the budget compilation. In any case, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so certified to the appropriate capital reserve fund of the authority. Recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that, if ever called upon to do so, it shall make such appropriation.

SB148,164,3 (6) In computing the amount of any capital reserve fund for the purposes of this section, securities in which all or a portion of such capital reserve fund is invested shall be valued at par, or if purchased at less than par, at their cost to the authority.

SB148,164,10 (7) Notwithstanding subs. (1) to (6), the authority, subject to such agreements with noteholders or bondholders as may then exist, may elect not to secure any particular issue of its bonds with a capital reserve fund. Such election shall be made in the resolution authorizing such issue. In this event, subs. (3) and (4) shall not apply to the bonds of such issue in that they shall not be entitled to payment out of or be eligible for purchase by any such fund nor shall they be taken into account in computing or applying any capital reserve fund requirement.

SB148,488 Section 488. 235.402 of the statutes is created to read:

SB148,164,15 235.402 Wisconsin housing finance fund; establishment and use. (1) Establishment of fund. There is established under the jurisdiction and control of the authority, for the purpose of segregating certain assets for housing-related purposes, a Wisconsin housing finance fund, consisting of the following:

SB148,164,20 (a) All moneys transferred to the authority under s. 20.885 (2) (a) and (ah), for capital reserve funds established for bonds issued under resolutions held in the Wisconsin housing finance fund, under s. 20.885 (2) (at) and (m) and all moneys received by the authority for the Wisconsin housing finance fund from any other source.

SB148,164,22 (b) All moneys transferred to the Wisconsin housing finance fund by the authority.

SB148,164,24 (c) All income from investment receipts generated from the Wisconsin housing finance fund.

SB148,165,2 (d) All other assets allocated to the Wisconsin housing finance fund by the authority or by law.

SB148,165,6 (2) Fund administration. (a) The authority shall use moneys in the Wisconsin housing finance fund and all other assets allocated to the fund only for housing-related purposes, including to make payments on bonds, notes, and other obligations of the authority issued or incurred for housing-related purposes.

SB148,165,10 (b) The authority may pledge moneys and other assets in the Wisconsin housing finance fund to bonds, notes, and other obligations of the authority incurred for housing-related purposes as specified in the resolution of the board authorizing the bond, note, or other obligation.

SB148,165,13 (c) Nothing in this section shall impair the integrity or source of funding of any capital reserve fund or other fund established under this chapter or under ch. 234, 2013 stats.

SB148,165,17 (3) Requirement concerning notes and bonds. The authority may not issue a note or bond that is secured by the Wisconsin housing finance fund unless the authorizing resolution of the board specifies that the note or bond is secured by the Wisconsin housing finance fund.

SB148,165,20 (4) No commingling. No assets or income of the authority that is allocable to the Wisconsin housing finance fund may be commingled with any other assets or income of the authority.

SB148,165,24 (5) Perpetual existence. The authority shall maintain the Wisconsin housing finance fund until the fund is terminated by law, but no such law shall take effect while the authority has obligations outstanding that are payable from the Wisconsin housing finance fund.

SB148,166,8 (6) Successorship. (a) Notes and bonds. 1. The authority shall be the successor obligor to the Wisconsin Housing and Economic Development Authority created under s. 234.02, 2013 stats., and shall assume all of the rights and obligations of the Wisconsin Housing and Economic Development Authority under all outstanding bonds, notes, and other indebtedness of the Wisconsin Housing and Economic Development Authority and all related instruments, including resolutions, indentures, credit and liquidity facilities and hedges, interest rate swap agreements, and derivatives.

SB148,166,18 2. All bonds, notes, and other evidences of indebtedness of the Wisconsin Housing and Economic Development Authority created under s. 234.02, 2013 stats., and all related instruments outstanding on the effective date of this subdivision .... [LRB inserts date], shall be unaffected by 2015 Wisconsin Act .... (this act), except for the assumption by the authority under par. (a). Any resolution or indenture with respect to the issuance of a bond, note, or other indebtedness by the Wisconsin Housing and Economic Development Authority and any action taken by the Wisconsin Housing and Economic Development Authority with respect to the financing of any project in connection with housing-related purposes shall become a resolution or indenture of the authority or an action taken by the authority.

SB148,166,24 (b) Pledges. The pledges, limited obligations, and general obligations of the Wisconsin Housing and Economic Development Authority created under s. 234.02, 2013 stats., with respect to its bonds, notes, or indebtedness shall be assigned and transferred, intact in the same form, to and assumed by the authority. All such pledges, limited obligations, and general obligations in existence on the effective date of this paragraph .... [LRB inserts date], are reconfirmed.

SB148,167,7 (c) Transfer of assets and liabilities. The authority shall deposit all moneys in and allocate all other assets and all liabilities to the Wisconsin housing finance fund that are transferred to the authority under 2015 Wisconsin Act .... (this act), section 562, from the Wisconsin Housing and Economic Development Authority created under s. 234.02, 2013 stats., that are not allocable to another fund administered by the Wisconsin Housing and Economic Development Authority under ch. 234, 2013 stats., and except moneys appropriated by law.