Under the bill, with limited exceptions, the Public Bank has all the powers of
a state-chartered bank. Among the exceptions, the Public Bank accepts only state
public deposits and, if the Public Bank is serving as a banker's bank (discussed
below), deposits from state-chartered financial institutions. The Public Bank may
not pay interest on deposit accounts. The Public Bank may accept and solicit
property, including donations, grants, and loans, for any purpose of the Public Bank.
The Public Bank's governing board must operate the Public Bank to ensure its
soundness and sustainability and to accomplish its purposes, but the governing
board may direct the Public Bank's earnings to be added to the Public Bank's capital,
invested in the State Investment Fund managed by the Investment Board, or
distributed to the state. The governing board must regularly review the Public
Bank's financial statements and other records to ensure that the Public Bank is in
compliance with all applicable laws and reporting requirements. The governing
board must also establish technical advisory committees and consult with public and
private sector experts related to the Public Bank's mission, objectives, and duties.
The governing board, along with the secretary of administration, must ensure that
the Public Bank maintains at all times cash or demand deposits in an amount needed
to meet the operational needs of the state.
The bill authorizes or requires specific activities of the Public Bank, including
all of the following:
1. The Public Bank must use its powers to extend affordable financing to
eligible recipients that have entered into labor peace agreements. The bill defines
“affordable financing,” “labor peace agreement,” and “eligible recipient,” the latter
of which includes in part a local governmental unit; a nonprofit organization
involved in community development; a land trust; a cooperative; an entity created
by financial institutions that pools funds to lend for affordable housing development;
a developer of housing or preservation projects if all the entities financing a project
invite the Public Bank to participate; a state-chartered financial institution if the
financing extended is used to support another eligible recipient; a community
development authority, redevelopment authority, housing authority, or community
development corporation; a small business enterprise that meets certain criteria;
and a small- or medium-sized farm and its related industries.

2. The Public Bank, in partnership with independent community banks, credit
unions, community development authorities, redevelopment authorities, housing
authorities, or community development corporations, may do the following: 1)
leverage at least 30 percent of public deposits as financial capital and resources to
provide access to low-cost capital or credit to small businesses, minority-owned and
women-owned business enterprises, entrepreneurs, start-up businesses, farmers,
and communities and individuals of this state having below average income, to
further economic growth, create jobs, reduce greenhouse gases, and build and
sustain affordable housing; 2) leverage the Public Bank's financial capital and
resources to provide access to low-cost capital to bring fiscally sound and financially
successful businesses into this state; and 3) leverage the Public Bank's financial
capital and resources to provide access to low-cost capital or credit to established
businesses in this state for the purpose of providing financial stability for the Public
Bank.
3. The Public Bank may join in making participation loans in which the Public
Bank shares in funding the loan with community banks, credit unions, community
development authorities, redevelopment authorities, housing authorities, and
community development corporations in this state, to qualified individuals and
businesses residing or doing business in this state if the originator of the loan is a
state-chartered financial institution.
4. The Public Bank may facilitate investment in, and financing of, construction
or improvement of new and existing public infrastructure systems, but the Public
Bank must first submit to the governor and legislature an implementation plan that
includes certain information.
5. The Public Bank, 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, including the refinancing of existing student loan debt. Before doing so, the
Public Bank must develop an implementation plan for the program that includes
specified elements.
6. The Public Bank may serve as a clearinghouse for financial institutions that
make the Public Bank a reserve depository.
7. The Public Bank may serve as a banker's bank for this state's
state-chartered financial institutions by providing correspondent banking services
and other related services for these financial institutions in unbanked and
underserved communities. The Public Bank may not compete with this state's
state-chartered financial institutions, particularly in unbanked and underserved
communities.
8. The Public Bank may make loans and incur debt and other nondeposit
liabilities, including money market borrowing, federal reserve borrowing, and
capital market borrowing. The Public Bank may buy and sell federal funds; issue
letters of credit for public deposits; rediscount paper; and provide a safekeeping
service for securities, bonds, and other investments.

9. The Public Bank must provide to the state all reasonable and necessary
depository services and may charge its cost of services to the state. The Public Bank
may provide corporate trust services for the state.
The bill requires the Public Bank to develop and maintain a business plan that
sets forth the Public Bank's strategy for accomplishing its statutory directives
through safe and sound operation. The bill specifies a process for developing the
business plan that includes input from the public. The business plan must include
the method of providing security or insurance for the public deposits that the Public
Bank receives. The Public Bank must make the business plan available to the public,
and the business plan must be updated at least once every four years. In developing
the business plan and in conducting its operations, the Public Bank must give
priority to the following considerations:
1. Supporting eligible recipients subject to the historic and current economic
inequities experienced by communities in underserved neighborhoods, as well as
eligible recipients working to remedy those inequities.
2. Supporting eligible recipients subject to the historic and current economic
inequities experienced by women throughout the state.
3. Supporting rural business and farming concerns.
4. Supporting businesses with compensation structures that provide a livable
wage or demonstrate a commitment to equitable pay.
5. Supporting entities that address the impacts of climate change and the
reduction of greenhouse gases.
6. Funding the need of municipalities to update and build safe and sustainable
infrastructure.
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.
8. Seeking participation loan options with the entities identified in 7., when
appropriate, rather than originating or servicing the loan itself.
9. Promoting equitable distribution of the Public Bank's resources across the
state, including ensuring that rural areas are given full and fair consideration.
The bill requires the Public Bank's CEO to implement the business plan and
manage the Public Bank consistently with the business plan. The Public Bank must
conduct its operations in compliance with the business plan, and the Public Bank's
governing board must monitor the Public Bank's compliance. The business plan may
only be overridden under certain emergency circumstances. As part of its
examination of the Public Bank as a state-chartered bank, the Division of Banking
must assess the Public Bank's compliance with the business plan, and this
assessment is available to the public six months after the examination.
Numerous provisions of current law treat state-created authorities similar to
state agencies for certain purposes. Although the Public Bank is not a state agency,
the bill treats the Public Bank similar to a state agency in the following respects,

among others: 1) it is generally subject to the open records and open meetings laws,
although certain information must be held confidential; 2) it is subject to auditing
by the Legislative Audit Bureau; 3) its CEO and members of the governing board are
subject to certain provisions of the state code of ethics; 4) its employees may
participate in the system for state retirement benefits and health insurance
coverage; and 5) it is exempt from sales and use taxes, property taxes, and income
taxes. Under the bill, the Public Bank is also subject to certain conflict-of-interest
restrictions, including that it may not transact business with its board members or
its officers or their immediate family members.
The bill requires the Public Bank to submit an annual report to the governor
and the legislature that includes specified information, including audited financial
statements, a description of the benefits of the Public Bank's activities to the state,
and certain compensation information.
The bill also creates an 18-member Board of Advisors, a state agency attached
to the Department of Financial Institutions, that reviews the Public Bank's
activities. The Board of Advisors must hold public meetings and maintain a website
that contains a comments portal that allows the public to comment on the activities
and future initiatives of the Public Bank. The Board of Advisors also communicates
to the Public Bank policy recommendations and concerns regarding the Public Bank.
The Public Bank must pay from its operating budget expenses incurred by the Board
of Advisors. The Public Bank must keep the Board of Advisors informed of the Public
Bank's operations, and the Public Bank and Board of Advisors must hold an annual
joint meeting.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB1106,1 1Section 1 . 13.172 (1) of the statutes is amended to read:
SB1106,6,72 13.172 (1) In this section, “agency" means an office, department, agency,
3institution of higher education, association, society, or other body in state
4government created or authorized to be created by the constitution or any law, that
5is entitled to expend moneys appropriated by law, including the legislature and the
6courts, and any authority created in subch. II of ch. 114 or in ch. 231, 233, 234, 238,
7239, or 279.
SB1106,2 8Section 2 . 13.48 (13) (a) of the statutes is amended to read:
SB1106,7,13
113.48 (13) (a) Except as provided in par. (b) or (c), every building, structure or
2facility that is constructed for the benefit of or use of the state, any state agency,
3board, commission or department, the University of Wisconsin Hospitals and Clinics
4Authority, the Fox River Navigational System Authority, the Public Bank of
5Wisconsin,
the Wisconsin Economic Development Corporation, or any local
6professional baseball park district created under subch. III of ch. 229 if the
7construction is undertaken by the department of administration on behalf of the
8district, shall be in compliance with all applicable state laws, rules, codes and
9regulations but the construction is not subject to the ordinances or regulations of the
10municipality in which the construction takes place except zoning, including without
11limitation because of enumeration ordinances or regulations relating to materials
12used, permits, supervision of construction or installation, payment of permit fees, or
13other restrictions.
SB1106,3 14Section 3 . 13.62 (2) of the statutes is amended to read:
SB1106,7,1815 13.62 (2) “Agency" means any board, commission, department, office, society,
16institution of higher education, council, or committee in the state government, or any
17authority created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237, 238, 239,
18or 279, except that the term does not include a council or committee of the legislature.
SB1106,4 19Section 4 . 13.94 (1) (dt) of the statutes is created to read:
SB1106,7,2420 13.94 (1) (dt) Biennially, beginning in 2025, conduct a financial audit of the
21Public Bank of Wisconsin and a program evaluation audit of the programs
22administered by the Public Bank of Wisconsin under ch. 239. The legislative audit
23bureau shall file a copy of each audit report under this paragraph with the
24distributees specified in par. (b).
SB1106,5 25Section 5 . 13.94 (1s) (c) 11. of the statutes is created to read:
SB1106,8,2
113.94 (1s) (c) 11. The Public Bank of Wisconsin for the cost of the audit required
2to be performed under sub. (1) (dt).
SB1106,6 3Section 6 . 13.94 (4) (a) 1. of the statutes is amended to read:
SB1106,8,204 13.94 (4) (a) 1. Every state department, board, examining board, affiliated
5credentialing board, commission, independent agency, council or office in the
6executive branch of state government; all bodies created by the legislature in the
7legislative or judicial branch of state government; any public body corporate and
8politic created by the legislature including specifically the Fox River Navigational
9System Authority, the Lower Fox River Remediation Authority, the Wisconsin
10Aerospace Authority, the Public Bank of Wisconsin, the Wisconsin Economic
11Development Corporation, a professional baseball park district, a local professional
12football stadium district, a local cultural arts district, and a long-term care district
13under s. 46.2895; every Wisconsin works agency under subch. III of ch. 49; every
14provider of medical assistance under subch. IV of ch. 49; technical college district
15boards; every county department under s. 51.42 or 51.437; every nonprofit
16corporation or cooperative or unincorporated cooperative association to which
17moneys are specifically appropriated by state law; and every corporation, institution,
18association or other organization which receives more than 50 percent of its annual
19budget from appropriations made by state law, including subgrantee or
20subcontractor recipients of such funds.
SB1106,7 21Section 7 . 13.95 (intro.) of the statutes is amended to read:
SB1106,9,9 2213.95 Legislative fiscal bureau. (intro.) There is created a bureau to be
23known as the “Legislative Fiscal Bureau" headed by a director. The fiscal bureau
24shall be strictly nonpartisan and shall at all times observe the confidential nature
25of the research requests received by it; however, with the prior approval of the

1requester in each instance, the bureau may duplicate the results of its research for
2distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's
3designated employees shall at all times, with or without notice, have access to all
4state agencies, the University of Wisconsin Hospitals and Clinics Authority, the
5Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
6Public Bank of Wisconsin,
the Wisconsin Economic Development Corporation, and
7the Fox River Navigational System Authority, and to any books, records, or other
8documents maintained by such agencies or authorities and relating to their
9expenditures, revenues, operations, and structure.
SB1106,8 10Section 8. 15.07 (1) (a) 7. of the statutes is created to read:
SB1106,9,1211 15.07 (1) (a) 7. Members of the board of advisors shall be appointed as provided
12in s. 15.185 (3), without senate confirmation.
SB1106,9 13Section 9. 15.07 (2) (n) of the statutes is created to read:
SB1106,9,1614 15.07 (2) (n) In addition, the board of advisors shall hold a meeting to elect a
15chairperson whenever a majority of the members of the board of advisors call for such
16an election.
SB1106,10 17Section 10. 15.07 (3) (bm) 7. of the statutes is created to read:
SB1106,9,1818 15.07 (3) (bm) 7. The board of advisors shall meet quarterly.
SB1106,11 19Section 11. 15.07 (5) (g) of the statutes is created to read:
SB1106,9,2220 15.07 (5) (g) Members of the board of advisors appointed under s. 15.185 (3) (a)
212. to 13., an amount determined by the governing board of the Public Bank of
22Wisconsin.
SB1106,12 23Section 12. 15.185 (3) of the statutes is created to read:
SB1106,10,3
115.185 (3) Board of advisors. (a) There is created a board of advisors, attached
2to the department of financial institutions under s. 15.03. Subject to par. (c) 1., the
3board of advisors shall consist of the following members:
SB1106,10,44 1. The lieutenant governor or the lieutenant governor's designee.
SB1106,10,65 2. One member appointed by the community development experts of the
6Federal Reserve Bank of Chicago.
SB1106,10,107 3. One member nominated by state-chartered financial institutions, including
8credit unions, that receive more than 90 percent of their deposits from residents of
9this state or nominated by associations representing predominantly these financial
10institutions, appointed by the governor.
SB1106,10,1211 4. One member nominated by a minority-owned financial institution,
12appointed by the governor.
SB1106,10,1713 5. Two members, each nominated by separate community development
14authorities, redevelopment authorities, housing authorities, or community
15development corporations that focus primarily on supporting economic development
16in this state, including rural and economic cooperative models and worker-owned
17enterprises, appointed by the governor.
SB1106,10,1918 6. Two members, each nominated by separate nonprofit organizations that
19support underserved neighborhoods, appointed by the governor.
SB1106,10,2320 7. Two members, each nominated by separate associations representing the
21interests of small business entities, particularly businesses owned by cognizable
22groups currently receiving less credit than proportional to their size or serving in
23areas operating in underserved neighborhoods, appointed by the governor.
SB1106,10,2524 8. One member nominated by nonprofit organizations that support sustainable
25agriculture, appointed by the governor.
SB1106,11,2
19. One member nominated by nonprofit organizations that support food
2security, appointed by the governor.
SB1106,11,43 10. One member nominated by nonprofit organizations that support climate
4change amelioration and environmental finance, appointed by the governor.
SB1106,11,65 11. One member nominated by nonprofit organizations that support
6environmental justice, appointed by the governor.
SB1106,11,97 12. Two members, each nominated by separate municipalities or state-based
8associations or chapters of municipal planners or professionals, appointed by the
9governor.
SB1106,11,1510 13. Two members, each nominated by separate organizations in which
11employees or workers participate and which exist for the purpose, in whole or in part,
12of representing the interests of workers concerning grievances, labor disputes,
13wages, rates of pay, hours of employment, or conditions of work, at least one
14organization of which represents the interests of low-income workers, appointed by
15the governor.
SB1106,11,1616 (b) The members under par. (a) 2. to 13. shall be appointed for a term of 4 years.
SB1106,11,1817 (c) 1. A nomination under par. (a) may not be made by an entity or organization
18unless the entity or organization has been in existence for at least 4 years.
SB1106,11,2019 2. All nominations under par. (a) shall be available to the public and posted on
20the Public Bank of Wisconsin's website.
SB1106,11,2221 (d) An individual may not serve as a member of the board of advisors for more
22than 8 years.
SB1106,13 23Section 13 . 16.002 (2) of the statutes is amended to read:
SB1106,12,324 16.002 (2) “Departments" means constitutional offices, departments, and
25independent agencies and includes all societies, associations, and other agencies of

1state government for which appropriations are made by law, but not including
2authorities created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237, 238, 239,
3or 279.
SB1106,14 4Section 14 . 16.004 (4) of the statutes is amended to read:
SB1106,12,105 16.004 (4) Freedom of access. The secretary and such employees of the
6department as the secretary designates may enter into the offices of state agencies
7and authorities created under subch. II of ch. 114 and under chs. 231, 233, 234, 237,
8238, 239, and 279, and may examine their books and accounts and any other matter
9that in the secretary's judgment should be examined and may interrogate the
10agency's employees publicly or privately relative thereto.
SB1106,15 11Section 15 . 16.004 (5) of the statutes is amended to read:
SB1106,12,1512 16.004 (5) Agencies and employees to cooperate. All state agencies and
13authorities created under subch. II of ch. 114 and under chs. 231, 233, 234, 237, 238,
14239, and 279, and their officers and employees, shall cooperate with the secretary
15and shall comply with every request of the secretary relating to his or her functions.
SB1106,16 16Section 16 . 16.004 (12) (a) of the statutes is amended to read:
SB1106,12,2417 16.004 (12) (a) In this subsection, “state agency" means an association,
18authority, board, department, commission, independent agency, institution, office,
19society, or other body in state government created or authorized to be created by the
20constitution or any law, including the legislature, the office of the governor, and the
21courts, but excluding the University of Wisconsin Hospitals and Clinics Authority,
22the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
23Wisconsin Economic Development Corporation, the Public Bank of Wisconsin, and
24the Fox River Navigational System Authority.
SB1106,17 25Section 17 . 16.045 (1) (a) of the statutes is amended to read:
SB1106,13,6
116.045 (1) (a) “Agency" means an office, department, independent agency,
2institution of higher education, association, society, or other body in state
3government created or authorized to be created by the constitution or any law, that
4is entitled to expend moneys appropriated by law, including the legislature and the
5courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 232,
6233, 234, 237, 238, 239, or 279.
SB1106,18 7Section 18 . 16.15 (1) (ab) of the statutes is amended to read:
SB1106,13,118 16.15 (1) (ab) “Authority" has the meaning given under s. 16.70 (2), but
9excludes the University of Wisconsin Hospitals and Clinics Authority, the Lower Fox
10River Remediation Authority, the Public Bank of Wisconsin, and the Wisconsin
11Economic Development Corporation.
SB1106,19 12Section 19 . 16.41 (4) of the statutes is amended to read:
SB1106,13,1413 16.41 (4) In this section, “authority" means a body created under subch. II of
14ch. 114 or under ch. 231, 233, 234, 237, 238, 239, or 279.
SB1106,20 15Section 20 . 16.417 (1) (b) of the statutes is amended to read:
SB1106,13,1716 16.417 (1) (b) “Authority" means a body created under subch. II of ch. 114 or
17ch. 231, 232, 233, 234, 237, 238, 239, or 279.
SB1106,21 18Section 21 . 16.52 (7) of the statutes is amended to read:
SB1106,14,319 16.52 (7) Petty cash account. With the approval of the secretary, each agency
20that is authorized to maintain a contingent fund under s. 20.920 may establish a
21petty cash account from its contingent fund. The procedure for operation and
22maintenance of petty cash accounts and the character of expenditures therefrom
23shall be prescribed by the secretary. In this subsection, “agency" means an office,
24department, independent agency, institution of higher education, association,
25society, or other body in state government created or authorized to be created by the

1constitution or any law, that is entitled to expend moneys appropriated by law,
2including the legislature and the courts, but not including an authority created in
3subch. II of ch. 114 or in ch. 231, 233, 234, 237, 238, 239, or 279.
SB1106,22 4Section 22 . 16.528 (1) (a) of the statutes is amended to read:
SB1106,14,105 16.528 (1) (a) “Agency" means an office, department, independent agency,
6institution of higher education, association, society, or other body in state
7government created or authorized to be created by the constitution or any law, that
8is entitled to expend moneys appropriated by law, including the legislature and the
9courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 233,
10234, 237, 238, 239, or 279.
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