AB1220,34,15 14(14) Assist students in need of additional low-cost student loans in financing
15the cost of higher education.
AB1220,34,18 16239.04 Powers and duties of the Bank, board. (1) (a) Except as provided
17in par. (e) and as otherwise provided in this chapter, the Public Bank of Wisconsin
18shall have all the powers of a state bank organized under ch. 221.
AB1220,34,2019 (b) 1. The Public Bank of Wisconsin may, but is not required to, become a
20member of the federal reserve system.
AB1220,34,2221 2. The Public Bank of Wisconsin may, but is not required to, become a member
22of the federal deposit insurance corporation.
AB1220,34,2423 3. The Public Bank of Wisconsin may, but is not required to, establish a master
24account with the federal reserve system to enhance the Bank's liquidity.
AB1220,35,4
1(c) The Public Bank of Wisconsin may conduct operations or engage in activities
2through subsidiaries to the same extent as other state banks organized under ch.
3221, but these subsidiaries are subject to any restriction or limitation applicable if
4the Bank directly conducted the operation or engaged in the activity.
AB1220,35,75 (d) The Public Bank of Wisconsin may accept and solicit property, including any
6gifts, donations, grants, bequests, loans, public funds, or other private contributions,
7for any of the purposes of this chapter.
AB1220,35,108 (e) The Public Bank of Wisconsin may accept public deposits and open deposit
9accounts only as provided in sub. (7) (d) and s. 34.05 (5). The Public Bank of
10Wisconsin may not pay interest on deposit accounts.
AB1220,35,1211 (f) The Public Bank of Wisconsin shall maintain complete records of all banking
12transactions.
AB1220,35,1513 (g) The board shall establish technical advisory committees and consult with
14public and private sector experts in substantive areas related to the Bank's mission,
15objectives, and duties.
AB1220,35,17 16(2) (a) The board shall have all the powers necessary or convenient to carry out
17the purposes and provisions of this chapter.
AB1220,35,2118 (b) 1. The board shall operate the Bank to ensure its soundness and
19sustainability and, subject to subd. 2., to accomplish the Bank's purposes under this
20chapter. The board shall adhere to the operating priorities identified in s. 239.035
21(1).
AB1220,35,2422 2. The board may direct the Bank's annual earnings to be added to the Bank's
23capital or distributed to the state, and the board may direct Bank deposits to be
24invested in the state investment fund under s. 25.14.
AB1220,36,3
1(c) The board shall regularly review the Bank's financial statements and other
2records to ensure that the Bank is in compliance with all applicable laws and
3regulations and with all reporting requirements under s. 239.08 (1).
AB1220,36,104 (d) The board shall keep the board of advisors fully informed of the Bank's
5operations and loan portfolio and shall convey the recommendations of the board of
6advisors to the Bank's chief executive officer. The board shall hold an annual joint
7meeting of the board with the board of advisors and the Bank's chief executive officer.
8The board chairperson shall preside over this meeting. If requested by a majority
9of the members of the board of advisors, the board shall schedule and hold additional
10joint meetings in the same year as the annual joint meeting.
AB1220,36,1311 (e) In conducting its operations, the Public Bank of Wisconsin shall comply with
12its business plan under s. 239.05 and further give priority to the following
13considerations:
AB1220,36,1714 1. Supporting eligible recipients subject to the historic and current economic
15inequities experienced by communities in underserved neighborhoods, including
16enterprises established by residents there, as well as eligible recipients working to
17remedy those inequities.
AB1220,36,1918 2. Supporting eligible recipients subject to the historic and current economic
19inequities experienced by women throughout the state.
AB1220,36,2020 3. Supporting rural business and farming concerns.
AB1220,36,2321 4. Supporting businesses with compensation structures that provide a livable
22wage, establish an equitable ratio between the least-paid and highest-paid
23members of the business, or otherwise demonstrate a commitment to equitable pay.
AB1220,36,2524 5. Supporting entities that address the impacts of climate change and the
25reduction of greenhouse gases.
AB1220,37,2
16. Funding the need of municipalities to update and build safe and sustainable
2infrastructure.
AB1220,37,83 7. Supporting the operation of local governmental units, nonprofit
4organizations, credit unions, local community banks, community development
5authorities, redevelopment authorities, housing authorities, community
6development corporations, and state-chartered financial institutions, including by
7complementing or partnering rather than competing with these entities to
8strengthen them and to expand affordable financing in the state.
AB1220,37,109 8. Seeking participation loan options with the entities under subd. 7., when
10appropriate, rather than originating or servicing the loan itself.
AB1220,37,1311 9. Promoting equitable distribution of the Bank's resources across the state,
12including ensuring that rural areas are given full and fair consideration and have
13all necessary support in completing the application process.
AB1220,37,15 14(3) In addition to all other powers granted the board under this chapter, the
15board may specifically do any of the following:
AB1220,37,1716 (a) Adopt, amend, and repeal bylaws, policies, and procedures for the
17regulation of its affairs and the conduct of its business.
AB1220,37,1818 (b) Sue and be sued.
AB1220,37,2019 (c) Establish the Public Bank of Wisconsin's annual budget and monitor the
20fiscal management of the Bank.
AB1220,37,2221 (d) Execute contracts and other instruments required for the operation of the
22Public Bank of Wisconsin.
AB1220,37,2423 (e) Make loans and incur debt and other nondeposit liabilities, including money
24market borrowing, federal reserve borrowing, and capital market borrowing.
AB1220,37,2525 (f) Procure liability insurance.
AB1220,38,2
1(g) Employ officers, staff, and agents and determine their qualifications,
2duties, and compensation.
AB1220,38,53 (h) Employ and compensate consultants, advisers, or other professionals to
4assist the board in carrying out its functions and exercising its authority under this
5chapter.
AB1220,38,8 6(4) (a) In this subsection, “labor peace agreement” means an agreement
7between an eligible recipient and a labor organization, as defined in s. 5.02 (8m), that
8does all of the following:
AB1220,38,119 1. Prohibits labor organizations and its members from engaging in picketing,
10work stoppages, boycotts, and any other economic interference with persons
11operating in this state.
AB1220,38,1412 2. Prohibits the eligible recipient from disrupting the efforts of the labor
13organization to communicate with and to organize and represent the eligible
14recipient's employees.
AB1220,38,1815 3. Provides the labor organization access at reasonable times to areas in which
16the eligible recipient's employees work for the purpose of meeting with employees to
17discuss their right to representation, employment rights under state law, and terms
18and conditions of employment.
AB1220,38,2019 (b) Subject to par. (c), the Public Bank of Wisconsin shall use its powers to
20extend affordable financing to eligible recipients.
AB1220,38,2221 (c) The Public Bank of Wisconsin may not extend affordable financing to an
22eligible recipient unless the eligible recipient does all of the following:
AB1220,38,2523 1. Certifies to the Bank that the eligible recipient has entered into a labor peace
24agreement and will abide by the terms of the agreement as a condition of receiving
25the affordable financing.
AB1220,39,3
12. Submits to the Bank a copy of the page of the labor peace agreement that
2contains the signatures of the labor organization representative and the
3representative of the eligible recipient.
AB1220,39,6 4(5) (a) The board may facilitate investment in, and financing of, construction,
5rehabilitation, replacement, and improvement of new and existing public
6infrastructure systems.
AB1220,39,107 (b) Before initiating operations under par. (a), the board shall submit to the
8governor and to the chief clerk of each house of the legislature, for distribution to the
9appropriate standing committees under s. 13.172 (3), an implementation plan,
10including a proposal for any necessary legislation, that includes all of the following:
AB1220,39,1211 1. Identification of the public infrastructure systems that the Bank plans to
12initially target.
AB1220,39,1413 2. Identification of any existing state programs that the Bank recommends be
14transferred under its authority, and the steps and timelines for the transitions.
AB1220,39,1615 3. A description of additional financing products and services the Bank plans
16to offer, the target markets, and anticipated rates, terms, and conditions.
AB1220,39,1917 4. A demonstration of how Bank products and services will increase access to
18capital for public infrastructure systems and complement those of existing public
19and private sources.
AB1220,39,2020 5. A demonstration of how the Bank plans to maximize public benefit.
AB1220,39,25 21(6) (a) The Public Bank of Wisconsin, in partnership with independent
22community banks, credit unions, or community development corporations, may
23administer a state guarantee loan program to assist students in need of low-cost
24student loans and related loan benefits to address educational needs as necessary to
25support student success, including the refinancing of existing student loan debt.
AB1220,40,2
1(b) The board shall develop an implementation plan for the program under par.
2(a). The implementation plan shall include all of the following:
AB1220,40,43 1. Identification of the needs and benefits to selected students that the program
4will initially target.
AB1220,40,65 2. The policies and criteria that the Bank will use to balance public benefit and
6public risk.
AB1220,40,87 3. Identification of the ways that the program will address all of the following
8issues related to loans:
AB1220,40,99 a. Qualification criteria for students.
AB1220,40,1010 b. Obligations and options for loan repayment.
AB1220,40,1111 c. Requirements for loan guarantees and reserves.
AB1220,40,1212 d. Establishing criteria for refinancing existing debt.
AB1220,40,1313 e. Fee and interest rate structures.
AB1220,40,1414 f. Maximum loan amounts.
AB1220,40,1615 g. Ensuring student awareness of grants, federal loans, and other financial aid
16programs.
AB1220,40,20 17(7) (a) The Public Bank of Wisconsin, in partnership with independent
18community banks, credit unions, community development authorities,
19redevelopment authorities, housing authorities, or community development
20corporations, may do any of the following:
AB1220,41,221 1. Leverage at least 30 percent of public deposits as financial capital and
22resources to provide access to low-cost capital or credit or both to small businesses,
23minority-owned and women-owned business enterprises, entrepreneurs, start-up
24businesses, farmers, and communities and individuals of this state having below
25average income, to further economic growth, create jobs, reduce greenhouse gases,

1and build and sustain affordable housing for this state's residents, as provided under
2this subsection.
AB1220,41,53 2. Leverage the Bank's financial capital and resources to provide access to
4low-cost capital to bring fiscally sound and financially successful businesses into
5this state, as provided under this subsection.
AB1220,41,96 3. Leverage the Bank's financial capital and resources to provide access to
7low-cost capital or credit or both to established businesses in this state for the
8purpose of providing financial stability for the Bank, as provided under this
9subsection.
AB1220,41,1510 (b) The Public Bank of Wisconsin may make loans in the form of participation
11loans with community banks, credit unions, community development authorities,
12redevelopment authorities, housing authorities, and community development
13corporations in this state, to qualified individuals and businesses residing or doing
14business in this state if the originator of the loan is a financial institution chartered
15under ch. 186, 214, 215, or 221.
AB1220,41,2116 (c) The Public Bank of Wisconsin may serve as a banker's bank for this state's
17state-chartered financial institutions by providing correspondent banking services
18and other related services for these financial institutions in unbanked and
19underserved communities. The Bank may not compete with this state's
20state-chartered financial institutions, particularly in unbanked and underserved
21communities.
AB1220,41,2322 (d) The Public Bank of Wisconsin may accept deposits related to transactions
23under par. (c) from this state's state-chartered financial institutions.
AB1220,42,2 24(8) (a) 1. For financial institutions that make the Public Bank of Wisconsin a
25reserve depository, the Bank may serve as a clearinghouse, including all facilities for

1providing domestic and foreign exchange, and may rediscount paper, on terms the
2board provides.
AB1220,42,43 2. The Bank may provide corporate trust services for the state, including
4trustee, escrow agent, paying agent, bond registrar, and transfer agent.
AB1220,42,85 3. The Bank may buy and sell federal funds; issue letters of credit for public
6deposits; and provide a safekeeping service for United States treasury securities,
7federal agency securities, corporate bonds, tax-free bonds, money market
8investments, and mortgage-backed securities.
AB1220,42,109 (b) The Bank shall provide to the state all reasonable and necessary depository
10services and may charge its cost of services to the state.
AB1220,42,1311 (c) The secretary of administration and the board shall together ensure that the
12Bank maintains at all times cash or demand deposits in an amount needed to meet
13the operational needs of the state.
AB1220,42,21 14239.05 Business plan. (1) The Public Bank of Wisconsin shall develop and
15maintain a business plan that sets forth the Bank's strategy for accomplishing its
16statutory directives through safe and sound operation of the Bank. In developing the
17business plan, the Bank shall give priority to the considerations specified in s. 239.04
18(2) (e). The business plan shall include the method of providing security or insurance
19for the public deposits that the Bank receives. The Bank shall make the business
20plan available to the public. The business plan shall be updated at least once every
214 years.
AB1220,42,24 22(2) (a) The chief executive officer of the Bank is responsible for developing the
23business plan and, upon approval by the board, for implementing the business plan
24and managing the Bank consistently with the business plan.
AB1220,43,20
1(b) The chief executive officer shall send a draft of the business plan to the board
2and, at the same time, to the chairperson of the board of advisors at least 30 days
3before the board of advisors' next scheduled quarterly meeting. The board of advisors
4shall immediately make the draft business plan publicly accessible on the board of
5advisors' website and shall publicly announce that the draft is available for public
6comment through the board of advisors' comments portal. Within 30 days after the
7board of advisors' quarterly meeting, the chairperson of the board of advisors shall
8combine the comments and suggestions of the members of the board of advisors,
9along with any public input that the board of advisors considers pertinent, into a
10concise list of recommended modifications to the business plan and shall distribute
11those recommendations to the members of the board of advisors and to the board.
12The board shall promptly convey these recommendations, together with any
13comments of its own, to the chief executive officer. The chief executive officer shall
14then prepare a new draft business plan taking these recommendations into account
15as the chief executive officer sees fit and shall convey the new draft business plan to
16the board and to the board of advisors within 30 days of the recommendations'
17receipt. The board of advisors' comments and recommendations, together with the
18public's input from the board of advisors' meetings and from the comments portal and
19the business plan approved under sub. (3), shall be made publicly available on the
20board of advisors' website.
AB1220,43,23 21(3) (a) The board is responsible for reviewing and approving the business plan
22developed under sub. (2). Notwithstanding s. 239.03 (8), approval of the business
23plan requires the affirmative vote of at least 8 board members.
AB1220,44,424 (b) Within 30 days of receiving the updated draft business plan under sub. (2)
25(b), the board shall vote upon approval of the business plan at a regularly scheduled

1or special meeting of the board. In approving the business plan, the board shall
2ensure that the business plan pays due attention to the recommendations of the
3Bank's board of advisors. After approving the business plan, the board shall monitor
4the Bank's compliance with the business plan.
AB1220,44,105 (c) If the board holds a vote under par. (b) on a draft business plan and the board
6fails to approve the draft business plan, the process under sub. (2) shall be repeated
7until the board approves a business plan. Upon the 3rd consecutive failure of the
8board to approve a draft business plan in a vote under par. (b), the board shall
9terminate the chief executive officer who developed the failed business plans and
10hire a new chief executive officer to begin the process again.
AB1220,44,13 11(4) (a) After the board's approval of the business plan under sub. (3), the
12business plan may not be overridden by the board except through a declaration of
13emergency under par. (b).
AB1220,44,2314 (b) In the event of a natural or man-made disaster, the board shall declare a
15state of emergency that requires the chief executive officer to override the business
16plan in the manner the board considers necessary to address and recover from the
17disaster. Notwithstanding s. 239.03 (8), the board's declaration of a state of
18emergency requires the affirmative vote of at least 9 board members and may only
19be made after consultation with the chairperson of the board of advisors. The
20declaration of a state of emergency shall specify the duration of the emergency, which
21may not exceed one year. Notwithstanding s. 239.03 (8), at the conclusion of this
22one-year period, the board may extend the declaration of a state of emergency for an
23additional one-year period upon the affirmative vote of at least 9 board members.
AB1220,45,4 24(5) In making its examination of the Public Bank of Wisconsin under s. 220.04
25(1) (a), the division shall assess the Public Bank of Wisconsin's compliance with the

1business plan. Notwithstanding s. 220.06 (3) (a), the division's assessment of the
2Public Bank of Wisconsin's compliance with the business plan shall be made
3available to the public beginning 6 months after the date on which the examination
4is concluded.
AB1220,45,11 5239.06 Board of advisors. (1) (a) At its quarterly meetings, the board of
6advisors shall review the activities of the Public Bank of Wisconsin.
7Notwithstanding any provision in ch. 19, the board of advisors shall provide public
8notice of its meetings at least 30 days before the meeting. The chairperson of the
9board of advisors may attend all meetings of the Bank's board and be recognized to
10speak, except those meetings authorized under ch. 19 to be conducted in closed
11session.
AB1220,45,1912 (b) The board of advisors shall maintain a website for the board of advisors and
13shall ensure that the public has an opportunity to provide input to the board of
14advisors on an ongoing basis through an Internet-based comments portal. The
15board of advisors shall make the establishment of the comments portal its first order
16of business and shall provide the Bank's board, as well as the chief executive officer
17and staff of the Bank, full access to the portal. The chairperson of the board of
18advisors is responsible for managing the comments portal and shall ensure that the
19comments on the portal are fully accessible to the public.
AB1220,45,20 20(2) The board of advisors' responsibilities include all of the following:
AB1220,45,2121 (a) Establishing rules of procedure for the board of advisors.
AB1220,45,2322 (b) Scheduling and publicizing the quarterly meetings of the board of advisors
23and providing to the public, on a timely basis, the minutes of these meetings.
AB1220,46,3
1(c) Establishing an Internet-based comments portal for the public to review
2and comment on the activities of the Public Bank of Wisconsin and make proposals
3regarding future initiatives for the Bank's consideration.
AB1220,46,54 (d) Reviewing the Bank's draft business plan and providing feedback as
5described in s. 239.05.
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