AB1220: Bill Text

AB1220,30,19 (6) A member of the board may not be compensated for his or her services but shall be reimbursed for actual and necessary expenses, including travel expenses, incurred in the performance of his or her duties.

AB1220,30,23 (7) The members of the board shall annually elect a chairperson and may elect other officers as they consider appropriate. Upon motion of at least 6 board members, the board shall hold a vote at a special meeting to retain or replace the board chairperson.

AB1220,31,3 (8) Nine board members constitute a quorum of the board and the affirmative vote of a majority of board members present and voting is required for any action of the board, including election of the board chairperson.

AB1220,31,6 (9) (a) The board shall meet quarterly and at any other time it considers necessary or upon the written request of the board chairperson or 6 board members. The board may hold meetings by means of remote communication.

AB1220,31,9 (b) The board shall provide notice of any board meeting to all board members, to the chairperson of the board of advisors, and to any other person who requests notice.

AB1220,31,10 (c) The board shall adopt procedures governing its meetings.

AB1220,31,13 (d) All board meetings shall be staffed with a Bank officer to serve as the board secretary. The board secretary shall keep a record of the proceedings of the board meeting and shall be the custodian of all meeting records.

AB1220,31,16 (e) The chairperson of the board of advisors or the chairperson's designee, or both, may attend any board meetings as a nonvoting participant, except those meetings authorized under ch. 19 to be conducted in closed session.

AB1220,31,22 (10) (a) The board shall appoint a chief executive officer of the Bank who may not be a member of the board and who shall serve at the pleasure of the board. Notwithstanding sub. (8), appointment of the chief executive officer requires the affirmative vote of at least 8 board members. At the discretion of the board chairperson, the board may utilize a form of ranked-choice voting to ensure that the 8-vote threshold is satisfied.

AB1220,31,24 (b) The board may delegate to the chief executive officer any powers and duties the board considers proper.

AB1220,32,4 (c) The board shall terminate the chief executive officer upon a vote of no confidence in the chief executive officer by at least 8 board members. If this occurs, the board shall immediately initiate the process of hiring a new chief executive officer.

AB1220,32,10 (d) If there is a vacancy, absence, or disability in the position of chief executive officer, as determined by the board, then notwithstanding sub. (8), the board may, upon the affirmative vote of 7 board members, designate an acting chief executive officer who has similar qualifications to those required under this subsection for the chief executive officer. An acting chief executive officer has all the powers and duties of the chief executive officer.

AB1220,32,12 (e) 1. The chief executive officer shall be compensated as determined by the board and shall devote full time and attention to the duties of the office.

AB1220,32,14 2. The chief executive officer shall have skill and experience in management and banking.

AB1220,32,20 3. The chief executive officer is the executive and administrative head of the Bank and is responsible for the Bank's administration and the Bank's compliance with this chapter. The chief executive officer is responsible for all aspects of the Bank's management, including its physical facilities, investments, loan portfolio, accounting, risk management, and regulatory compliance, as well as the responsibilities specified in s. 239.05 (2).

AB1220,32,23 4. The chief executive officer may employ other employees, consultants, agents, and advisors, including legal counsel, and shall attend meetings of the board, except those board meetings authorized under ch. 19 to be conducted in closed session.

AB1220,33,3 239.035 Purpose of the Public Bank of Wisconsin. The purpose of the Public Bank of Wisconsin is to accept and hold deposits of public funds and utilize those funds in this state to further the Bank's goals to do all of the following:

AB1220,33,8 (1) Accomplish the Bank's mission by adhering to priorities of institutional safety and soundness as ensured by division supervision; long-term viability; social return and monetary return on lending and investments; prudent and best banking and business practices; highest ethical, accountability, and transparency standards; and insulation from political influence.

AB1220,33,11 (2) Support the expansion and development of public and private measures to mitigate the grave dangers that climate change poses to the public and local enterprises, and to promote reductions in greenhouse gas emissions.

AB1220,33,15 (3) Promote economic development and job creation in this state, and support the economic well-being and health of this state, by providing affordable financing to eligible recipients and small- and medium-sized businesses, especially in underserved communities.

AB1220,33,18 (4) Assist businesses and municipalities in recovering from the economic repercussions of external shocks, including pandemics, recessions, and natural disasters.

AB1220,33,20 (5) Respond to the unmet affordable financing needs of local governmental units.

AB1220,33,22 (6) Address the historic and current disadvantages experienced by the state's minority-owned and women-owned enterprises by providing affordable financing.

AB1220,33,24 (7) Assist workers and communities in creating jobs by supporting cooperative business models including worker-owned cooperatives.

AB1220,33,25 (8) Increase available affordable housing options for all residents of this state.

AB1220,34,2 (9) Promote sustainable agriculture and address food insecurity, particularly by providing financing to family-owned farms and rural businesses that serve them.

AB1220,34,5 (10) Support nonprofit and community-based organizations that work to address the results of racial injustice or to promote women's economic and social equity or both.

AB1220,34,9 (11) Provide economic support to state agencies, local governmental units, and nonprofit organizations, including community development authorities, redevelopment authorities, housing authorities, and community development corporations.

AB1220,34,11 (12) Strengthen state-chartered banks, particularly through participatory loan programs.

AB1220,34,13 (13) Enable the state to share in the methods of monetary support the federal government provides to commercial banks.

AB1220,34,15 (14) Assist students in need of additional low-cost student loans in financing the cost of higher education.

AB1220,34,18 239.04 Powers and duties of the Bank, board. (1) (a) Except as provided in par. (e) and as otherwise provided in this chapter, the Public Bank of Wisconsin shall have all the powers of a state bank organized under ch. 221.

AB1220,34,20 (b) 1. The Public Bank of Wisconsin may, but is not required to, become a member of the federal reserve system.

AB1220,34,22 2. The Public Bank of Wisconsin may, but is not required to, become a member of the federal deposit insurance corporation.

AB1220,34,24 3. The Public Bank of Wisconsin may, but is not required to, establish a master account with the federal reserve system to enhance the Bank's liquidity.

AB1220,35,4 (c) The Public Bank of Wisconsin may conduct operations or engage in activities through subsidiaries to the same extent as other state banks organized under ch. 221, but these subsidiaries are subject to any restriction or limitation applicable if the Bank directly conducted the operation or engaged in the activity.

AB1220,35,7 (d) The Public Bank of Wisconsin may accept and solicit property, including any gifts, donations, grants, bequests, loans, public funds, or other private contributions, for any of the purposes of this chapter.

AB1220,35,10 (e) The Public Bank of Wisconsin may accept public deposits and open deposit accounts only as provided in sub. (7) (d) and s. 34.05 (5). The Public Bank of Wisconsin may not pay interest on deposit accounts.

AB1220,35,12 (f) The Public Bank of Wisconsin shall maintain complete records of all banking transactions.

AB1220,35,15 (g) The board shall establish technical advisory committees and consult with public and private sector experts in substantive areas related to the Bank's mission, objectives, and duties.

AB1220,35,17 (2) (a) The board shall have all the powers necessary or convenient to carry out the purposes and provisions of this chapter.

AB1220,35,21 (b) 1. The board shall operate the Bank to ensure its soundness and sustainability and, subject to subd. 2., to accomplish the Bank's purposes under this chapter. The board shall adhere to the operating priorities identified in s. 239.035 (1).

AB1220,35,24 2. The board may direct the Bank's annual earnings to be added to the Bank's capital or distributed to the state, and the board may direct Bank deposits to be invested in the state investment fund under s. 25.14.

AB1220,36,3 (c) The board shall regularly review the Bank's financial statements and other records to ensure that the Bank is in compliance with all applicable laws and regulations and with all reporting requirements under s. 239.08 (1).

AB1220,36,10 (d) The board shall keep the board of advisors fully informed of the Bank's operations and loan portfolio and shall convey the recommendations of the board of advisors to the Bank's chief executive officer. The board shall hold an annual joint meeting of the board with the board of advisors and the Bank's chief executive officer. The board chairperson shall preside over this meeting. If requested by a majority of the members of the board of advisors, the board shall schedule and hold additional joint meetings in the same year as the annual joint meeting.

AB1220,36,13 (e) In conducting its operations, the Public Bank of Wisconsin shall comply with its business plan under s. 239.05 and further give priority to the following considerations:

AB1220,36,17 1. Supporting eligible recipients subject to the historic and current economic inequities experienced by communities in underserved neighborhoods, including enterprises established by residents there, as well as eligible recipients working to remedy those inequities.

AB1220,36,19 2. Supporting eligible recipients subject to the historic and current economic inequities experienced by women throughout the state.

AB1220,36,20 3. Supporting rural business and farming concerns.

AB1220,36,23 4. Supporting businesses with compensation structures that provide a livable wage, establish an equitable ratio between the least-paid and highest-paid members of the business, or otherwise demonstrate a commitment to equitable pay.

AB1220,36,25 5. Supporting entities that address the impacts of climate change and the reduction of greenhouse gases.

AB1220,37,2 6. Funding the need of municipalities to update and build safe and sustainable infrastructure.

AB1220,37,8 7. Supporting the operation of local governmental units, nonprofit organizations, credit unions, local community banks, community development authorities, redevelopment authorities, housing authorities, community development corporations, and state-chartered financial institutions, including by complementing or partnering rather than competing with these entities to strengthen them and to expand affordable financing in the state.

AB1220,37,10 8. Seeking participation loan options with the entities under subd. 7., when appropriate, rather than originating or servicing the loan itself.

AB1220,37,13 9. Promoting equitable distribution of the Bank's resources across the state, including ensuring that rural areas are given full and fair consideration and have all necessary support in completing the application process.

AB1220,37,15 (3) In addition to all other powers granted the board under this chapter, the board may specifically do any of the following:

AB1220,37,17 (a) Adopt, amend, and repeal bylaws, policies, and procedures for the regulation of its affairs and the conduct of its business.

AB1220,37,18 (b) Sue and be sued.

AB1220,37,20 (c) Establish the Public Bank of Wisconsin's annual budget and monitor the fiscal management of the Bank.

AB1220,37,22 (d) Execute contracts and other instruments required for the operation of the Public Bank of Wisconsin.

AB1220,37,24 (e) Make loans and incur debt and other nondeposit liabilities, including money market borrowing, federal reserve borrowing, and capital market borrowing.

AB1220,37,25 (f) Procure liability insurance.

AB1220,38,2 (g) Employ officers, staff, and agents and determine their qualifications, duties, and compensation.

AB1220,38,5 (h) Employ and compensate consultants, advisers, or other professionals to assist the board in carrying out its functions and exercising its authority under this chapter.

AB1220,38,8 (4) (a) In this subsection, “labor peace agreement” means an agreement between an eligible recipient and a labor organization, as defined in s. 5.02 (8m), that does all of the following:

AB1220,38,11 1. Prohibits labor organizations and its members from engaging in picketing, work stoppages, boycotts, and any other economic interference with persons operating in this state.

AB1220,38,14 2. Prohibits the eligible recipient from disrupting the efforts of the labor organization to communicate with and to organize and represent the eligible recipient's employees.

AB1220,38,18 3. Provides the labor organization access at reasonable times to areas in which the eligible recipient's employees work for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment.

AB1220,38,20 (b) Subject to par. (c), the Public Bank of Wisconsin shall use its powers to extend affordable financing to eligible recipients.

AB1220,38,22 (c) The Public Bank of Wisconsin may not extend affordable financing to an eligible recipient unless the eligible recipient does all of the following:

AB1220,38,25 1. Certifies to the Bank that the eligible recipient has entered into a labor peace agreement and will abide by the terms of the agreement as a condition of receiving the affordable financing.

AB1220,39,3 2. Submits to the Bank a copy of the page of the labor peace agreement that contains the signatures of the labor organization representative and the representative of the eligible recipient.

AB1220,39,6 (5) (a) The board may facilitate investment in, and financing of, construction, rehabilitation, replacement, and improvement of new and existing public infrastructure systems.

AB1220,39,10 (b) Before initiating operations under par. (a), the board shall submit to the governor and to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3), an implementation plan, including a proposal for any necessary legislation, that includes all of the following:

AB1220,39,12 1. Identification of the public infrastructure systems that the Bank plans to initially target.

AB1220,39,14 2. Identification of any existing state programs that the Bank recommends be transferred under its authority, and the steps and timelines for the transitions.

AB1220,39,16 3. A description of additional financing products and services the Bank plans to offer, the target markets, and anticipated rates, terms, and conditions.

AB1220,39,19 4. A demonstration of how Bank products and services will increase access to capital for public infrastructure systems and complement those of existing public and private sources.

AB1220,39,20 5. A demonstration of how the Bank plans to maximize public benefit.

AB1220,39,25 (6) (a) The Public Bank of Wisconsin, in partnership with independent community banks, credit unions, or community development corporations, may administer a state guarantee loan program to assist students in need of low-cost student loans and related loan benefits to address educational needs as necessary to support student success, including the refinancing of existing student loan debt.

AB1220,40,2 (b) The board shall develop an implementation plan for the program under par. (a). The implementation plan shall include all of the following:

AB1220,40,4 1. Identification of the needs and benefits to selected students that the program will initially target.

AB1220,40,6 2. The policies and criteria that the Bank will use to balance public benefit and public risk.

AB1220,40,8 3. Identification of the ways that the program will address all of the following issues related to loans:

AB1220,40,9 a. Qualification criteria for students.

AB1220,40,10 b. Obligations and options for loan repayment.

AB1220,40,11 c. Requirements for loan guarantees and reserves.

AB1220,40,12 d. Establishing criteria for refinancing existing debt.

AB1220,40,13 e. Fee and interest rate structures.