234.932(2)(a)
(a) Moneys appropriated to the authority under
s. 20.490 (6) (a) and
(k) or received by the authority for the Wisconsin job training reserve fund from any other source.
234.932(2)(b)
(b) Any income from investment of money in the Wisconsin job training reserve fund by the authority under
s. 234.03 (18).
234.932(3)(a)(a) The authority or department shall enter into a guarantee agreement with any bank, production credit association, credit union, savings bank, savings and loan association or other person who wishes to participate in the loan program guaranteed by the Wisconsin job training reserve fund. The authority or department may determine all of the following, consistent with the terms of the loan guarantee program:
234.932(3)(a)2.
2. Any conditions upon which the authority or department may refuse to enter into such an agreement.
234.932(3)(a)3.
3. Any procedures required to carry out the agreement, including default procedures and procedures for determining the guaranteed percentage of each loan.
234.932(3)(b)
(b) The authority may not use any moneys other than those in the Wisconsin job training reserve fund for the job training loan guarantee program, and may not use moneys in the Wisconsin job training reserve fund for any programs other than the job training loan guarantee program.
234.932(3)(c)
(c) The department may establish an eligibility criteria review panel, consisting of experts in finance and in the subject area of the job training loan guarantee program, to provide advice about lending requirements and issues related to the job training loan guarantee program.
234.932(3)(d)
(d) The authority shall ensure that the cash balance in the Wisconsin job training reserve fund is sufficient to fund guarantees under the job training loan guarantee program at a ratio of $1 of reserve funding to $4 of total outstanding guaranteed principal that the authority may guarantee under the program and to pay all outstanding claims under the program. The authority shall regularly monitor the cash balance in the Wisconsin job training reserve fund to ensure that the cash balance is sufficient for the purposes specified in this paragraph.
234.932(4)
(4) Increases or decreases in loan guarantees. The authority or department may request the joint committee on finance to take action under
s. 13.10 to permit the authority to increase or decrease the total outstanding guaranteed principal amount of loans that it may guarantee under the job training loan guarantee program. Included with its request, the authority or department shall provide a projection, for the next June 30, that compares the amounts required on that date to pay outstanding claims and to fund guarantees under the job training loan guarantee program, and the balance remaining in the Wisconsin job training reserve fund on that date after deducting such amounts, if the increase or decrease is approved, with such amounts and the balance remaining, if the increase or decrease is not approved.
234.932(5)
(5) Annual report. Annually, the authority or department shall report on the number and total dollar amount of guaranteed loans under the job training loan guarantee program, the default rate on the loans and any other information on the program that the authority or department determines is significant.
234.932(6)
(6) Moral obligation. Recognizing its moral obligation, the legislature expresses its expectation that, if called upon to do so, it shall make an appropriation to meet all demands for funds guaranteed by the Wisconsin job training reserve fund.
234.932 History
History: 1995 a. 27 s.
9116 (5);
1995 a. 116.
234.935
234.935
Cultural and architectural landmark loan guarantees. 234.935(1)(1)
Definition. In this section, "cultural and architectural landmark" means real property and improvements designated in an executive order as a valued historical landmark and an architectural masterpiece, or an educational tourist center located adjacent to the real property and improvements designated in an executive order as a valued historical landmark and an architectural masterpiece.
234.935(2)
(2) Guarantee requirements. The authority may use money from the Wisconsin development reserve fund to guarantee a loan under this section if all of the following apply:
234.935(2)(a)
(a) The borrower qualifies as an eligible borrower under
sub. (3).
234.935(2)(c)
(c) The lender is the authority, or a financial institution that enters into an agreement under
s. 234.93 (2) (a), or both.
234.935(3)
(3) Eligible borrower. An organization qualifies as an eligible borrower if all of the following apply:
234.935(3)(b)
(b) The organization owns or leases a cultural and architectural landmark.
234.935(4)
(4) Eligible loan. A loan is eligible for guarantee of collection from the Wisconsin development reserve fund under
s. 234.93 if all of the following apply:
234.935(4)(a)
(a) The borrower uses the loan proceeds for acquiring, constructing, improving, rehabilitating or equipping a cultural and architectural landmark.
234.935(4)(b)
(b) The loan proceeds are used for the purchase or improvement of land, buildings, machinery or equipment, or for related expenses.
234.935(4)(c)
(c) The loan proceeds are not used for entertainment expenses or for refinancing existing debt.
234.935(4)(d)
(d) The lender obtains a security interest for repayment of the loan in real or personal property of the debtor.
234.935(5)(a)(a) Subject to
pars. (b) and
(c), the authority may guarantee collection of a percentage, not exceeding 90%, of the principal of any loan eligible for guarantee under
sub. (2). The authority shall establish the percentage of the principal of an eligible loan that will be guaranteed, using the procedures described in the agreement under
s. 234.93 (2) (a). The authority may establish a single percentage for all guaranteed loans or establish different percentages for eligible loans on an individual basis.
234.935(5)(b)
(b) The total principal amount of all loans that the authority may guarantee under this section may not exceed $8,000,000.
234.935(5)(c)
(c) Prior to guaranteeing a loan under this section, the authority shall document to the secretary of administration that the Wisconsin development reserve fund contains sufficient funds to guarantee the loan.
234.935 History
History: 1991 a. 39.
234.94(1)
(1) "Capital participation instrument" means:
234.94(1)(a)
(a) Any of the following or an option or other right to acquire any of the following:
234.94(1)(b)
(b) Royalties or other lawful derivations of a capital participation instrument listed under
par. (a).
234.94(2)
(2) "Community development corporation" means:
234.94(2)(a)
(a) Any Native American tribal governing body or any business created by the governing body.
234.94(2)(b)1.
1. That is organized to operate within specific geographic boundaries;
234.94(2)(b)2.
2. That permits all adults residing in the area of operation to become members of the corporation and limits voting membership of persons not residing in the area to not more than 10% of the total membership;
234.94(2)(b)3.
3. That has a board of directors, a majority of whom reside in a target area or are members of a target group;
234.94(2)(b)4.
4. That makes a demonstrable effort to hire low-income or underemployed residents of the operating area;
234.94(2)(b)5.
5. Whose purpose is to promote the employment of members of a target group through projects that meet the conditions specified in
s. 234.96 (1) (a) to
(d);
234.94(2)(b)6.
6. That demonstrates a commitment to involving residents of target areas or members of target groups in projects; and
234.94(2)(b)7.
7. That petitions the authority for designation as a community development corporation.
234.94(3)
(3) "Community development finance company" means a corporation or a limited partnership organized for profit under
s. 234.95.
234.94(4)
(4) "Cost of a project" means costs associated with the design, planning and implementation of a project that, in accordance with sound business and financial practices, are appropriate charges to the project. The costs may include, but are not limited to, the costs of planning and design, options to buy land, feasibility or other studies, seed money, construction, working capital and any other costs determined by the company to be necessary to the purposes of this chapter.
234.94(5)
(5) "Primary employment" means work which pays at least the minimum wage as established under
ch. 104 or under federal law, whichever is greater, offers adequate fringe benefits, including health insurance, and is not seasonal or part time.
234.94(6)
(6) "Project" means a commercial, industrial or real estate business or other economic activity that is located in a target area or directed toward a target group and that has the purpose to create or preserve jobs for low-income people.
234.94(7)
(7) "Target area" means a contiguous geographic area in which 50% or more of the households have income that is less than 80% of the statewide median household income.
234.94(8)
(8) "Target group" means a population group for which the unemployment level is at least 25% higher than the statewide unemployment level, or a population group for which the average wage received is less than 1.2 times the minimum wage as established under
ch. 104 or under federal law, whichever is greater. No population group is required to be located within a contiguous geographic area to be considered a target group.
234.94 History
History: 1981 c. 371;
1983 a. 106,
538;
1987 a. 399 ss.
419,
420g,
421,
422,
441,
441m; Stats. 1987 s. 234.94.
234.95
234.95
Community development finance company. 234.95(1)(1) The community development finance company is the corporation organized for profit under
ch. 180, or limited partnership organized under
ch. 179, which was created under s.
233.05 (1), 1985 stats. The chairperson of the authority, or his or her designee, is a director of the community development finance company. The shareholders of the community development finance company shall elect 4 other people to the company's board of directors. To the extent practicable, 3 people elected to the board of directors shall have substantial business and financial experience and one person shall represent a community development corporation. If the community development finance company is organized as a limited partnership its general partner shall, to the extent practicable, have substantial business and financial experience.
234.95(2)
(2) The community development finance company shall issue stock or partnership interests. The community development finance company shall invest funds it receives from the sale of stock or partnership interests by purchasing capital participation instruments under
s. 234.96.
234.95 History
History: 1981 c. 371;
1983 a. 106.
1987 a. 399 s.
430; Stats. 1987 s. 234.95.
234.96
234.96
Community development project participation. 234.96(1)(1) The community development finance company may purchase a capital participation instrument of a project. The community development finance company may require that the project meet any of the following conditions:
234.96(1)(a)
(a) The project shall be located in a target area and be reasonably expected to contribute to the redevelopment and economic well-being of a target area or target group, other than by increasing or maintaining employment that is not primary employment, or be reasonably expected to increase or maintain threatened primary employment.
234.96(1)(b)
(b) The project plans conform to all applicable environmental, zoning, building, planning or sanitation laws.
234.96(1)(c)
(c) The project will be of public benefit and for a public purpose and, if the purpose is other than to maintain primary employment, the benefit of the project, including increasing primary employment and the provision of capital, will primarily accrue to a target area or target group.
234.96(1)(d)
(d) There is a reasonable expectation that the project will be successful.
234.96(1)(e)
(e) Private industry has not provided sufficient capital required for the project or sufficient employment opportunities in the project's area.
234.96(1)(f)
(f) The purchase is necessary to the successful completion of the proposed project because funding for the project is unavailable in the traditional capital markets, or because credit has been offered on terms that would preclude the success of the project.
234.96(1)(g)
(g) Provision has been made by contract for adequate reporting of financial data by the project to the community development finance company. Those provisions may include a requirement for an annual or other periodic audit of the project's financial records.
234.96(1)(h)
(h) The community development finance company will not own more than 49% of the voting stock in any enterprise as a result of the purchase.
234.96(1)(i)
(i) The proceeds of the purchase will be used solely in connection with the costs of the project.
234.96(1)(j)
(j) The community development corporation will maintain sufficient control over the project to ensure that public benefit and public purposes are maintained. Control over the project is sufficient if:
234.96(1)(j)1.
1. The project is conducted by a subsidiary which is completely owned by the community development corporation;
234.96(1)(j)2.
2. The community development corporation owns a majority of the voting stock of the corporation conducting the project; or
234.96(1)(j)3.
3. Binding commitments have been made for reporting to the community development corporation so that the community development corporation retains sufficient control to ensure that benefits under
par. (c) will accrue to the intended beneficiaries.
234.96(1)(k)
(k) Provision has been made by contract to provide that if the community development finance company desires to dispose of the capital participation instrument, other than through a public offering made in compliance with applicable federal securities law, the community development corporation or its nominee may, within 90 days after receiving notice of the proposed disposition, purchase the capital participation instrument at the price and on the terms specified in the notice. The contract shall provide that the community development finance company may dispose of the capital participation instrument only for terms not more favorable than specified in the notice and only after the community development corporation notifies the authority that it will not purchase on or after the expiration of the 90-day period. The community development finance company may include a provision permitting it to extend the period during which the community development corporation may exercise its option by not more than 90 days.
234.96(1)(L)
(L) The community development corporation is able to manage its project responsibilities.
234.96(1)(m)
(m) The total investment by the community development finance company in any one community development corporation will not exceed 20% of the total amount of its investable funds in community development corporations.
234.96(1)(p)
(p) The project will not result in a substantial increase in unemployment in the area of original location of any business or establishment relocated as part of the project.
234.96(2)
(2) The findings made by the community development finance company under this section are conclusive.
234.96(3)
(3) If 25% of the membership of the community development corporation or an equal number of adult members of the target group or adults residing in the target area of the project, if any, sign a petition requesting a public hearing and file the petition with the community development corporation, the community development finance company may only purchase capital participation instruments through the community development corporation after the community development corporation holds a public hearing on the desirability of the project. The public hearing shall be held as close as practical to the proposed project site, prior to commencing the project. The community development corporation shall record the names and addresses of all persons appearing for or against the project.
234.96 History
History: 1981 c. 371;
1983 a. 106;
1987 a. 399 s.
431; Stats. 1987 s. 234.96.
234.97
234.97
Sale or purchase of stock or interest. Subject to
s. 234.96 (1) (h), the authority shall do all of the following:
234.97(1)
(1) Use any funds received from the sale of community development finance company stock or partnership interest to purchase additional stock or partnership interests.
234.97(2)
(2) Use funds received from contributions, gifts or grants under
s. 234.03 (32) to purchase community development finance company stock or partnership interests or make grants or loans to community development corporations.
234.97 History
History: 1987 a. 399.
