Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1220 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	LRB-5652/1
2	2	ARG:amn
3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 1220
5	5	April 11, 2024 - Introduced by Representatives MADISON, HONG and CLANCY,
6	6	cosponsored by Senator LARSON. Referred to Committee on Financial
7	7	Institutions.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to repeal 34.045; to amend 13.172 (1), 13.48 (13) (a), 13.62 (2), 13.94 (4)
10	10	(a) 1., 13.95 (intro.), 16.002 (2), 16.004 (4), 16.004 (5), 16.004 (12) (a), 16.045 (1)
11	11	(a), 16.15 (1) (ab), 16.41 (4), 16.417 (1) (b), 16.52 (7), 16.528 (1) (a), 16.53 (2),
12	12	16.54 (9) (a) 1., 16.765 (1), 16.765 (2), 16.765 (5), 16.765 (6), 16.765 (7) (intro.),
13	13	16.765 (7) (d), 16.765 (8), 16.85 (2), 16.865 (8), 20.907 (5) (e) 12r., 34.03 (2), 34.05
14	14	(4) (intro.), 34.07, 71.26 (1) (be), 77.54 (9a) (a), 100.45 (1) (dm) and 230.03 (3);
15	15	and to create 13.94 (1) (dt), 13.94 (1s) (c) 11., 15.07 (1) (a) 7., 15.07 (2) (n), 15.07
16	16	(3) (bm) 7., 15.07 (5) (g), 15.185 (3), 19.42 (10) (t), 19.42 (13) (s), 20.195, 34.05
17	17	(5), 40.02 (54) (n), 70.11 (38v) and chapter 239 of the statutes; relating to:
18	18	creating an authority to be known as the Public Bank of Wisconsin and making
19	19	an appropriation.
20	20	Analysis by the Legislative Reference Bureau
21	21	This bill creates an authority known as the Public Bank of Wisconsin (the
22	22	Public Bank). The Public Bank is a public body corporate and politic, but is not a
23	23	state agency and the state is not liable for its acts or obligations. The Public Bank
24	24	must organize as a state-chartered bank supervised by the Division of Banking in
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36	36	ARG:amn
37	37	ASSEMBLY BILL 1220
38	38	the Department of Financial Institutions and generally accepts deposits only of
39	39	public moneys from the state (as described below).
40	40	The Public Bank's purpose is to accept and hold deposits of public funds and
41	41	utilize those funds in this state to further the Public Bank's goals to do all of the
42	42	following:
43	43	1. Accomplish the Public Bank's mission by adhering to the following priorities:
44	44	institutional safety and soundness; long-term viability; social return and monetary
45	45	return on lending and investments; prudent and best banking and business
46	46	practices; highest ethical, accountability, and transparency standards; and
47	47	insulation from political influence.
48	48	2. Support the expansion and development of public and private measures to
49	49	mitigate the grave dangers that climate change poses to the public and local
50	50	enterprises, and to promote reductions in greenhouse gas emissions.
51	51	3. Promote economic development and job creation in this state, and support
52	52	the economic well-being and health of this state, by providing affordable financing
53	53	to eligible recipients (as discussed below) and small- and medium-sized businesses,
54	54	especially in underserved communities.
55	55	4. Assist businesses and municipalities in recovering from the economic
56	56	repercussions of external shocks, including pandemics, recessions, and natural
57	57	disasters.
58	58	5. Respond to the unmet affordable financing needs of local governmental
59	59	units.
60	60	6. Address the historic and current disadvantages experienced by the state's
61	61	minority-owned and women-owned enterprises by providing affordable financing.
62	62	7. Assist workers and communities in creating jobs by supporting cooperative
63	63	business models including worker-owned cooperatives.
64	64	8. Increase available affordable housing options for state residents.
65	65	9. Promote sustainable agriculture and address food insecurity, particularly by
66	66	providing financing to family-owned farms and rural businesses that serve them.
67	67	10. Support nonprofit and community-based organizations that work to
68	68	address the results of racial injustice or to promote women's economic and social
69	69	equity.
70	70	11. Provide economic support to state agencies, local governmental units, and
71	71	nonprofit organizations, including community development authorities,
72	72	redevelopment authorities, housing authorities, and community development
73	73	corporations.
74	74	12. Strengthen state-chartered banks, particularly through participatory loan
75	75	programs.
76	76	13. Enable the state to share in the methods of monetary support the federal
77	77	government provides to commercial banks.
78	78	14. Assist students in need of additional low-cost student loans in financing
79	79	the cost of higher education.
80	80	Under the bill, an 11-member governing board exercises the powers and duties
81	81	of the Public Bank. Board members include the state treasurer, the state
82	82	superintendent of public instruction, and the president of the University of - 3 -2023 - 2024 Legislature
83	83	LRB-5652/1
84	84	ARG:amn
85	85	ASSEMBLY BILL 1220
86	86	Wisconsin System, or their designees, along with eight members of varying
87	87	backgrounds appointed by the governor. Board members are not compensated for
88	88	their services but may be reimbursed for expenses. The board must appoint a chief
89	89	executive officer (CEO) of the Public Bank and may delegate powers and duties to
90	90	the CEO. As the executive and administrative head of the Public Bank, the CEO is
91	91	responsible for the Public Bank's management, administration, and legal
92	92	compliance.
93	93	The bill generally requires the state to deposit the state's public moneys in the
94	94	Public Bank. The required deposits are phased in over a four-year period, with at
95	95	least 30 percent of the state's public deposits required to be in the Public Bank by
96	96	January 1, 2025, and all of the state's public deposits required to be in the Public
97	97	Bank by January 1, 2028, subject to limited exceptions.
98	98	Under the bill, with limited exceptions, the Public Bank has all the powers of
99	99	a state-chartered bank. Among the exceptions, the Public Bank accepts only state
100	100	public deposits and, if the Public Bank is serving as a banker's bank (discussed
101	101	below), deposits from state-chartered financial institutions. The Public Bank may
102	102	not pay interest on deposit accounts. The Public Bank may accept and solicit
103	103	property, including donations, grants, and loans, for any purpose of the Public Bank.
104	104	The Public Bank's governing board must operate the Public Bank to ensure its
105	105	soundness and sustainability and to accomplish its purposes, but the governing
106	106	board may direct the Public Bank's earnings to be added to the Public Bank's capital,
107	107	invested in the State Investment Fund managed by the Investment Board, or
108	108	distributed to the state. The governing board must regularly review the Public
109	109	Bank's financial statements and other records to ensure that the Public Bank is in
110	110	compliance with all applicable laws and reporting requirements. The governing
111	111	board must also establish technical advisory committees and consult with public and
112	112	private sector experts related to the Public Bank's mission, objectives, and duties.
113	113	The governing board, along with the secretary of administration, must ensure that
114	114	the Public Bank maintains at all times cash or demand deposits in an amount needed
115	115	to meet the operational needs of the state.
116	116	The bill authorizes or requires specific activities of the Public Bank, including
117	117	all of the following:
118	118	1. The Public Bank must use its powers to extend affordable financing to
119	119	eligible recipients that have entered into labor peace agreements. The bill defines
120	120	“affordable financing,” “labor peace agreement,” and “eligible recipient,” the latter
121	121	of which includes in part a local governmental unit; a nonprofit organization
122	122	involved in community development; a land trust; a cooperative; an entity created
123	123	by financial institutions that pools funds to lend for affordable housing development;
124	124	a developer of housing or preservation projects if all the entities financing a project
125	125	invite the Public Bank to participate; a state-chartered financial institution if the
126	126	financing extended is used to support another eligible recipient; a community
127	127	development authority, redevelopment authority, housing authority, or community
128	128	development corporation; a small business enterprise that meets certain criteria;
129	129	and a small- or medium-sized farm and its related industries. - 4 -2023 - 2024 Legislature LRB-5652/1
130	130	ARG:amn
131	131	ASSEMBLY BILL 1220
132	132	2. The Public Bank, in partnership with independent community banks, credit
133	133	unions, community development authorities, redevelopment authorities, housing
134	134	authorities, or community development corporations, may do the following: 1)
135	135	leverage at least 30 percent of public deposits as financial capital and resources to
136	136	provide access to low-cost capital or credit to small businesses, minority-owned and
137	137	women-owned business enterprises, entrepreneurs, start-up businesses, farmers,
138	138	and communities and individuals of this state having below average income, to
139	139	further economic growth, create jobs, reduce greenhouse gases, and build and
140	140	sustain affordable housing; 2) leverage the Public Bank's financial capital and
141	141	resources to provide access to low-cost capital to bring fiscally sound and financially
142	142	successful businesses into this state; and 3) leverage the Public Bank's financial
143	143	capital and resources to provide access to low-cost capital or credit to established
144	144	businesses in this state for the purpose of providing financial stability for the Public
145	145	Bank.
146	146	3. The Public Bank may join in making participation loans in which the Public
147	147	Bank shares in funding the loan with community banks, credit unions, community
148	148	development authorities, redevelopment authorities, housing authorities, and
149	149	community development corporations in this state, to qualified individuals and
150	150	businesses residing or doing business in this state if the originator of the loan is a
151	151	state-chartered financial institution.
152	152	4. The Public Bank may facilitate investment in, and financing of, construction
153	153	or improvement of new and existing public infrastructure systems, but the Public
154	154	Bank must first submit to the governor and legislature an implementation plan that
155	155	includes certain information.
156	156	5. The Public Bank, in partnership with independent community banks, credit
157	157	unions, or community development corporations, may administer a state guarantee
158	158	loan program to assist students in need of low-cost student loans and related loan
159	159	benefits, including the refinancing of existing student loan debt. Before doing so, the
160	160	Public Bank must develop an implementation plan for the program that includes
161	161	specified elements.
162	162	6. The Public Bank may serve as a clearinghouse for financial institutions that
163	163	make the Public Bank a reserve depository.
164	164	7. The Public Bank may serve as a banker 's bank for this state's
165	165	state-chartered financial institutions by providing correspondent banking services
166	166	and other related services for these financial institutions in unbanked and
167	167	underserved communities. The Public Bank may not compete with this state's
168	168	state-chartered financial institutions, particularly in unbanked and underserved
169	169	communities.
170	170	8. The Public Bank may make loans and incur debt and other nondeposit
171	171	liabilities, including money market borrowing, federal reserve borrowing, and
172	172	capital market borrowing. The Public Bank may buy and sell federal funds; issue
173	173	letters of credit for public deposits; rediscount paper; and provide a safekeeping
174	174	service for securities, bonds, and other investments. - 5 -2023 - 2024 Legislature
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176	176	ARG:amn
177	177	ASSEMBLY BILL 1220
178	178	9. The Public Bank must provide to the state all reasonable and necessary
179	179	depository services and may charge its cost of services to the state. The Public Bank
180	180	may provide corporate trust services for the state.
181	181	The bill requires the Public Bank to develop and maintain a business plan that
182	182	sets forth the Public Bank's strategy for accomplishing its statutory directives
183	183	through safe and sound operation. The bill specifies a process for developing the
184	184	business plan that includes input from the public. The business plan must include
185	185	the method of providing security or insurance for the public deposits that the Public
186	186	Bank receives. The Public Bank must make the business plan available to the public,
187	187	and the business plan must be updated at least once every four years. In developing
188	188	the business plan and in conducting its operations, the Public Bank must give
189	189	priority to the following considerations:
190	190	1. Supporting eligible recipients subject to the historic and current economic
191	191	inequities experienced by communities in underserved neighborhoods, as well as
192	192	eligible recipients working to remedy those inequities.
193	193	2. Supporting eligible recipients subject to the historic and current economic
194	194	inequities experienced by women throughout the state.
195	195	3. Supporting rural business and farming concerns.
196	196	4. Supporting businesses with compensation structures that provide a livable
197	197	wage or demonstrate a commitment to equitable pay.
198	198	5. Supporting entities that address the impacts of climate change and the
199	199	reduction of greenhouse gases.
200	200	6. Funding the need of municipalities to update and build safe and sustainable
201	201	infrastructure.
202	202	7. Supporting the operation of local governmental units, nonprofit
203	203	organizations, credit unions, local community banks, community development
204	204	authorities, redevelopment authorities, housing authorities, community
205	205	development corporations, and state-chartered financial institutions, including by
206	206	complementing or partnering rather than competing with these entities to
207	207	strengthen them and to expand affordable financing in the state.
208	208	8. Seeking participation loan options with the entities identified in 7., when
209	209	appropriate, rather than originating or servicing the loan itself.
210	210	9. Promoting equitable distribution of the Public Bank's resources across the
211	211	state, including ensuring that rural areas are given full and fair consideration.
212	212	The bill requires the Public Bank's CEO to implement the business plan and
213	213	manage the Public Bank consistently with the business plan. The Public Bank must
214	214	conduct its operations in compliance with the business plan, and the Public Bank's
215	215	governing board must monitor the Public Bank's compliance. The business plan may
216	216	only be overridden under certain emergency circumstances. As part of its
217	217	examination of the Public Bank as a state-chartered bank, the Division of Banking
218	218	must assess the Public Bank's compliance with the business plan, and this
219	219	assessment is available to the public six months after the examination.
220	220	Numerous provisions of current law treat state-created authorities similar to
221	221	state agencies for certain purposes. Although the Public Bank is not a state agency,
222	222	the bill treats the Public Bank similar to a state agency in the following respects, - 6 -2023 - 2024 Legislature LRB-5652/1
223	223	ARG:amn
224	224	ASSEMBLY BILL 1220
225	225	among others: 1) it is generally subject to the open records and open meetings laws,
226	226	although certain information must be held confidential; 2) it is subject to auditing
227	227	by the Legislative Audit Bureau; 3) its CEO and members of the governing board are
228	228	subject to certain provisions of the state code of ethics; 4) its employees may
229	229	participate in the system for state retirement benefits and health insurance
230	230	coverage; and 5) it is exempt from sales and use taxes, property taxes, and income
231	231	taxes. Under the bill, the Public Bank is also subject to certain conflict-of-interest
232	232	restrictions, including that it may not transact business with its board members or
233	233	its officers or their immediate family members.
234	234	The bill requires the Public Bank to submit an annual report to the governor
235	235	and the legislature that includes specified information, including audited financial
236	236	statements, a description of the benefits of the Public Bank's activities to the state,
237	237	and certain compensation information.
238	238	The bill also creates an 18-member Board of Advisors, a state agency attached
239	239	to the Department of Financial Institutions, that reviews the Public Bank's
240	240	activities. The Board of Advisors must hold public meetings and maintain a website
241	241	that contains a comments portal that allows the public to comment on the activities
242	242	and future initiatives of the Public Bank. The Board of Advisors also communicates
243	243	to the Public Bank policy recommendations and concerns regarding the Public Bank.
244	244	The Public Bank must pay from its operating budget expenses incurred by the Board
245	245	of Advisors. The Public Bank must keep the Board of Advisors informed of the Public
246	246	Bank's operations, and the Public Bank and Board of Advisors must hold an annual
247	247	joint meeting.
248	248	For further information see the state fiscal estimate, which will be printed as
249	249	an appendix to this bill.
250	250	The people of the state of Wisconsin, represented in senate and assembly, do
251	251	enact as follows:
252	252	SECTION 1. 13.172 (1) of the statutes is amended to read:
253	253	13.172 (1) In this section, “agency" means an office, department, agency,
254	254	institution of higher education, association, society, or other body in state
255	255	government created or authorized to be created by the constitution or any law, that
256	256	is entitled to expend moneys appropriated by law, including the legislature and the
257	257	courts, and any authority created in subch. II of ch. 114 or in ch. 231, 233, 234, 238,
258	258	239, or 279.
259	259	SECTION 2. 13.48 (13) (a) of the statutes is amended to read:
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270	270	SECTION 2
271	271	ASSEMBLY BILL 1220
272	272	13.48 (13) (a) Except as provided in par. (b) or (c), every building, structure or
273	273	facility that is constructed for the benefit of or use of the state, any state agency,
274	274	board, commission or department, the University of Wisconsin Hospitals and Clinics
275	275	Authority, the Fox River Navigational System Authority, the Public Bank of
276	276	Wisconsin, the Wisconsin Economic Development Corporation, or any local
277	277	professional baseball park district created under subch. III of ch. 229 if the
278	278	construction is undertaken by the department of administration on behalf of the
279	279	district, shall be in compliance with all applicable state laws, rules, codes and
280	280	regulations but the construction is not subject to the ordinances or regulations of the
281	281	municipality in which the construction takes place except zoning, including without
282	282	limitation because of enumeration ordinances or regulations relating to materials
283	283	used, permits, supervision of construction or installation, payment of permit fees, or
284	284	other restrictions.
285	285	SECTION 3. 13.62 (2) of the statutes is amended to read:
286	286	13.62 (2) “Agency" means any board, commission, department, office, society,
287	287	institution of higher education, council, or committee in the state government, or any
288	288	authority created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237, 238, 239,
289	289	or 279, except that the term does not include a council or committee of the legislature.
290	290	SECTION 4. 13.94 (1) (dt) of the statutes is created to read:
291	291	13.94 (1) (dt) Biennially, beginning in 2025, conduct a financial audit of the
292	292	Public Bank of Wisconsin and a program evaluation audit of the programs
293	293	administered by the Public Bank of Wisconsin under ch. 239. The legislative audit
294	294	bureau shall file a copy of each audit report under this paragraph with the
295	295	distributees specified in par. (b).
296	296	SECTION 5. 13.94 (1s) (c) 11. of the statutes is created to read:
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322	322	ARG:amn
323	323	SECTION 5 ASSEMBLY BILL 1220
324	324	13.94 (1s) (c) 11. The Public Bank of Wisconsin for the cost of the audit required
325	325	to be performed under sub. (1) (dt).
326	326	SECTION 6. 13.94 (4) (a) 1. of the statutes is amended to read:
327	327	13.94 (4) (a) 1. Every state department, board, examining board, affiliated
328	328	credentialing board, commission, independent agency, council or office in the
329	329	executive branch of state government; all bodies created by the legislature in the
330	330	legislative or judicial branch of state government; any public body corporate and
331	331	politic created by the legislature including specifically the Fox River Navigational
332	332	System Authority, the Lower Fox River Remediation Authority, the Wisconsin
333	333	Aerospace Authority, the Public Bank of Wisconsin, the Wisconsin Economic
334	334	Development Corporation, a professional baseball park district, a local professional
335	335	football stadium district, a local cultural arts district, and a long-term care district
336	336	under s. 46.2895; every Wisconsin works agency under subch. III of ch. 49; every
337	337	provider of medical assistance under subch. IV of ch. 49; technical college district
338	338	boards; every county department under s. 51.42 or 51.437; every nonprofit
339	339	corporation or cooperative or unincorporated cooperative association to which
340	340	moneys are specifically appropriated by state law; and every corporation, institution,
341	341	association or other organization which receives more than 50 percent of its annual
342	342	budget from appropriations made by state law , including subgrantee or
343	343	subcontractor recipients of such funds.
344	344	SECTION 7. 13.95 (intro.) of the statutes is amended to read:
345	345	13.95 Legislative fiscal bureau. (intro.) There is created a bureau to be
346	346	known as the “Legislative Fiscal Bureau" headed by a director. The fiscal bureau
347	347	shall be strictly nonpartisan and shall at all times observe the confidential nature
348	348	of the research requests received by it; however, with the prior approval of the
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376	376	SECTION 7
377	377	ASSEMBLY BILL 1220
378	378	requester in each instance, the bureau may duplicate the results of its research for
379	379	distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's
380	380	designated employees shall at all times, with or without notice, have access to all
381	381	state agencies, the University of Wisconsin Hospitals and Clinics Authority, the
382	382	Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
383	383	Public Bank of Wisconsin, the Wisconsin Economic Development Corporation, and
384	384	the Fox River Navigational System Authority, and to any books, records, or other
385	385	documents maintained by such agencies or authorities and relating to their
386	386	expenditures, revenues, operations, and structure.
387	387	SECTION 8. 15.07 (1) (a) 7. of the statutes is created to read:
388	388	15.07 (1) (a) 7. Members of the board of advisors shall be appointed as provided
389	389	in s. 15.185 (3), without senate confirmation.
390	390	SECTION 9. 15.07 (2) (n) of the statutes is created to read:
391	391	15.07 (2) (n) In addition, the board of advisors shall hold a meeting to elect a
392	392	chairperson whenever a majority of the members of the board of advisors call for such
393	393	an election.
394	394	SECTION 10. 15.07 (3) (bm) 7. of the statutes is created to read:
395	395	15.07 (3) (bm) 7. The board of advisors shall meet quarterly.
396	396	SECTION 11. 15.07 (5) (g) of the statutes is created to read:
397	397	15.07 (5) (g) Members of the board of advisors appointed under s. 15.185 (3) (a)
398	398	2. to 13., an amount determined by the governing board of the Public Bank of
399	399	Wisconsin.
400	400	SECTION 12. 15.185 (3) of the statutes is created to read:
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424	424	ARG:amn
425	425	SECTION 12 ASSEMBLY BILL 1220
426	426	15.185 (3) BOARD OF ADVISORS. (a) There is created a board of advisors, attached
427	427	to the department of financial institutions under s. 15.03. Subject to par. (c) 1., the
428	428	board of advisors shall consist of the following members:
429	429	1. The lieutenant governor or the lieutenant governor's designee.
430	430	2. One member appointed by the community development experts of the
431	431	Federal Reserve Bank of Chicago.
432	432	3. One member nominated by state-chartered financial institutions, including
433	433	credit unions, that receive more than 90 percent of their deposits from residents of
434	434	this state or nominated by associations representing predominantly these financial
435	435	institutions, appointed by the governor.
436	436	4. One member nominated by a minority-owned financial institution,
437	437	appointed by the governor.
438	438	5. Two members, each nominated by separate community development
439	439	authorities, redevelopment authorities, housing authorities, or community
440	440	development corporations that focus primarily on supporting economic development
441	441	in this state, including rural and economic cooperative models and worker-owned
442	442	enterprises, appointed by the governor.
443	443	6. Two members, each nominated by separate nonprofit organizations that
444	444	support underserved neighborhoods, appointed by the governor.
445	445	7. Two members, each nominated by separate associations representing the
446	446	interests of small business entities, particularly businesses owned by cognizable
447	447	groups currently receiving less credit than proportional to their size or serving in
448	448	areas operating in underserved neighborhoods, appointed by the governor.
449	449	8. One member nominated by nonprofit organizations that support sustainable
450	450	agriculture, appointed by the governor.
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477	477	ARG:amn
478	478	SECTION 12
479	479	ASSEMBLY BILL 1220
480	480	9. One member nominated by nonprofit organizations that support food
481	481	security, appointed by the governor.
482	482	10. One member nominated by nonprofit organizations that support climate
483	483	change amelioration and environmental finance, appointed by the governor.
484	484	11. One member nominated by nonprofit organizations that support
485	485	environmental justice, appointed by the governor.
486	486	12. Two members, each nominated by separate municipalities or state-based
487	487	associations or chapters of municipal planners or professionals, appointed by the
488	488	governor.
489	489	13. Two members, each nominated by separate organizations in which
490	490	employees or workers participate and which exist for the purpose, in whole or in part,
491	491	of representing the interests of workers concerning grievances, labor disputes,
492	492	wages, rates of pay, hours of employment, or conditions of work, at least one
493	493	organization of which represents the interests of low-income workers, appointed by
494	494	the governor.
495	495	(b) The members under par. (a) 2. to 13. shall be appointed for a term of 4 years.
496	496	(c) 1. A nomination under par. (a) may not be made by an entity or organization
497	497	unless the entity or organization has been in existence for at least 4 years.
498	498	2. All nominations under par. (a) shall be available to the public and posted on
499	499	the Public Bank of Wisconsin's website.
500	500	(d) An individual may not serve as a member of the board of advisors for more
501	501	than 8 years.
502	502	SECTION 13. 16.002 (2) of the statutes is amended to read:
503	503	16.002 (2) “Departments" means constitutional offices, departments, and
504	504	independent agencies and includes all societies, associations, and other agencies of
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530	530	ARG:amn
531	531	SECTION 13 ASSEMBLY BILL 1220
532	532	state government for which appropriations are made by law, but not including
533	533	authorities created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237, 238, 239,
534	534	or 279.
535	535	SECTION 14. 16.004 (4) of the statutes is amended to read:
536	536	16.004 (4) FREEDOM OF ACCESS. The secretary and such employees of the
537	537	department as the secretary designates may enter into the offices of state agencies
538	538	and authorities created under subch. II of ch. 114 and under chs. 231, 233, 234, 237,
539	539	238, 239, and 279, and may examine their books and accounts and any other matter
540	540	that in the secretary's judgment should be examined and may interrogate the
541	541	agency's employees publicly or privately relative thereto.
542	542	SECTION 15. 16.004 (5) of the statutes is amended to read:
543	543	16.004 (5) AGENCIES AND EMPLOYEES TO COOPERATE. All state agencies and
544	544	authorities created under subch. II of ch. 114 and under chs. 231, 233, 234, 237, 238,
545	545	239, and 279, and their officers and employees, shall cooperate with the secretary
546	546	and shall comply with every request of the secretary relating to his or her functions.
547	547	SECTION 16. 16.004 (12) (a) of the statutes is amended to read:
548	548	16.004 (12) (a) In this subsection, “state agency" means an association,
549	549	authority, board, department, commission, independent agency, institution, office,
550	550	society, or other body in state government created or authorized to be created by the
551	551	constitution or any law, including the legislature, the office of the governor, and the
552	552	courts, but excluding the University of Wisconsin Hospitals and Clinics Authority,
553	553	the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
554	554	Wisconsin Economic Development Corporation, the Public Bank of Wisconsin, and
555	555	the Fox River Navigational System Authority.
556	556	SECTION 17. 16.045 (1) (a) of the statutes is amended to read:
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581	581	25 - 13 -2023 - 2024 Legislature
582	582	LRB-5652/1
583	583	ARG:amn
584	584	SECTION 17
585	585	ASSEMBLY BILL 1220
586	586	16.045 (1) (a) “Agency" means an office, department, independent agency,
587	587	institution of higher education, association, society, or other body in state
588	588	government created or authorized to be created by the constitution or any law, that
589	589	is entitled to expend moneys appropriated by law, including the legislature and the
590	590	courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 232,
591	591	233, 234, 237, 238, 239, or 279.
592	592	SECTION 18. 16.15 (1) (ab) of the statutes is amended to read:
593	593	16.15 (1) (ab) “Authority" has the meaning given under s. 16.70 (2), but
594	594	excludes the University of Wisconsin Hospitals and Clinics Authority, the Lower Fox
595	595	River Remediation Authority, the Public Bank of Wisconsin, and the Wisconsin
596	596	Economic Development Corporation.
597	597	SECTION 19. 16.41 (4) of the statutes is amended to read:
598	598	16.41 (4) In this section, “authority" means a body created under subch. II of
599	599	ch. 114 or under ch. 231, 233, 234, 237, 238, 239, or 279.
600	600	SECTION 20. 16.417 (1) (b) of the statutes is amended to read:
601	601	16.417 (1) (b) “Authority" means a body created under subch. II of ch. 114 or
602	602	ch. 231, 232, 233, 234, 237, 238, 239, or 279.
603	603	SECTION 21. 16.52 (7) of the statutes is amended to read:
604	604	16.52 (7) PETTY CASH ACCOUNT. With the approval of the secretary, each agency
605	605	that is authorized to maintain a contingent fund under s. 20.920 may establish a
606	606	petty cash account from its contingent fund. The procedure for operation and
607	607	maintenance of petty cash accounts and the character of expenditures therefrom
608	608	shall be prescribed by the secretary. In this subsection, “agency" means an office,
609	609	department, independent agency, institution of higher education, association,
610	610	society, or other body in state government created or authorized to be created by the
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636	636	ARG:amn
637	637	SECTION 21 ASSEMBLY BILL 1220
638	638	constitution or any law, that is entitled to expend moneys appropriated by law,
639	639	including the legislature and the courts, but not including an authority created in
640	640	subch. II of ch. 114 or in ch. 231, 233, 234, 237, 238, 239, or 279.
641	641	SECTION 22. 16.528 (1) (a) of the statutes is amended to read:
642	642	16.528 (1) (a) “Agency" means an office, department, independent agency,
643	643	institution of higher education, association, society, or other body in state
644	644	government created or authorized to be created by the constitution or any law, that
645	645	is entitled to expend moneys appropriated by law, including the legislature and the
646	646	courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 233,
647	647	234, 237, 238, 239, or 279.
648	648	SECTION 23. 16.53 (2) of the statutes is amended to read:
649	649	16.53 (2) IMPROPER INVOICES. If an agency receives an improperly completed
650	650	invoice, the agency shall notify the sender of the invoice within 10 working days after
651	651	it receives the invoice of the reason it is improperly completed. In this subsection,
652	652	“agency" means an office, department, independent agency, institution of higher
653	653	education, association, society, or other body in state government created or
654	654	authorized to be created by the constitution or any law, that is entitled to expend
655	655	moneys appropriated by law, including the legislature and the courts, but not
656	656	including an authority created in subch. II of ch. 114 or in ch. 231, 233, 234, 237, 238,
657	657	239, or 279.
658	658	SECTION 24. 16.54 (9) (a) 1. of the statutes is amended to read:
659	659	16.54 (9) (a) 1. “Agency" means an office, department, independent agency,
660	660	institution of higher education, association, society or other body in state
661	661	government created or authorized to be created by the constitution or any law, which
662	662	is entitled to expend moneys appropriated by law, including the legislature and the
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687	687	25 - 15 -2023 - 2024 Legislature
688	688	LRB-5652/1
689	689	ARG:amn
690	690	SECTION 24
691	691	ASSEMBLY BILL 1220
692	692	courts, but not including an authority created in subch. II of ch. 114 or in ch. 231, 233,
693	693	234, 237, 238, 239, or 279.
694	694	SECTION 25. 16.765 (1) of the statutes is amended to read:
695	695	16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and
696	696	Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
697	697	Aerospace Authority, the Lower Fox River Remediation Authority, the Public Bank
698	698	of Wisconsin, the Wisconsin Economic Development Corporation, and the Bradley
699	699	Center Sports and Entertainment Corporation shall include in all contracts executed
700	700	by them a provision obligating the contractor not to discriminate against any
701	701	employee or applicant for employment because of age, race, religion, color, handicap,
702	702	sex, physical condition, developmental disability as defined in s. 51.01 (5), sexual
703	703	orientation as defined in s. 111.32 (13m), or national origin and, except with respect
704	704	to sexual orientation, obligating the contractor to take affirmative action to ensure
705	705	equal employment opportunities.
706	706	SECTION 26. 16.765 (2) of the statutes is amended to read:
707	707	16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and
708	708	Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
709	709	Aerospace Authority, the Lower Fox River Remediation Authority, the Public Bank
710	710	of Wisconsin, the Wisconsin Economic Development Corporation, and the Bradley
711	711	Center Sports and Entertainment Corporation shall include the following provision
712	712	in every contract executed by them: “In connection with the performance of work
713	713	under this contract, the contractor agrees not to discriminate against any employee
714	714	or applicant for employment because of age, race, religion, color, handicap, sex,
715	715	physical condition, developmental disability as defined in s. 51.01 (5), sexual
716	716	orientation or national origin. This provision shall include, but not be limited to, the
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742	742	ARG:amn
743	743	SECTION 26 ASSEMBLY BILL 1220
744	744	following: employment, upgrading, demotion or transfer; recruitment or recruitment
745	745	advertising; layoff or termination; rates of pay or other forms of compensation; and
746	746	selection for training, including apprenticeship. Except with respect to sexual
747	747	orientation, the contractor further agrees to take affirmative action to ensure equal
748	748	employment opportunities. The contractor agrees to post in conspicuous places,
749	749	available for employees and applicants for employment, notices to be provided by the
750	750	contracting officer setting forth the provisions of the nondiscrimination clause".
751	751	SECTION 27. 16.765 (5) of the statutes is amended to read:
752	752	16.765 (5) The head of each contracting agency and the boards of directors of
753	753	the University of Wisconsin Hospitals and Clinics Authority, the Fox River
754	754	Navigational System Authority, the Wisconsin Aerospace Authority, the Lower Fox
755	755	River Remediation Authority, the Public Bank of Wisconsin, the Wisconsin Economic
756	756	Development Corporation, and the Bradley Center Sports and Entertainment
757	757	Corporation shall be primarily responsible for obtaining compliance by any
758	758	contractor with the nondiscrimination and affirmative action provisions prescribed
759	759	by this section, according to procedures recommended by the department. The
760	760	department shall make recommendations to the contracting agencies and the boards
761	761	of directors of the University of Wisconsin Hospitals and Clinics Authority, the Fox
762	762	River Navigational System Authority, the Wisconsin Aerospace Authority, the Lower
763	763	Fox River Remediation Authority, the Public Bank of Wisconsin, the Wisconsin
764	764	Economic Development Corporation, and the Bradley Center Sports and
765	765	Entertainment Corporation for improving and making more effective the
766	766	nondiscrimination and affirmative action provisions of contracts. The department
767	767	shall promulgate such rules as may be necessary for the performance of its functions
768	768	under this section.
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793	793	25 - 17 -2023 - 2024 Legislature
794	794	LRB-5652/1
795	795	ARG:amn
796	796	SECTION 28
797	797	ASSEMBLY BILL 1220
798	798	SECTION 28. 16.765 (6) of the statutes is amended to read:
799	799	16.765 (6) The department may receive complaints of alleged violations of the
800	800	nondiscrimination provisions of such contracts. The department shall investigate
801	801	and determine whether a violation of this section has occurred. The department may
802	802	delegate this authority to the contracting agency, the University of Wisconsin
803	803	Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
804	804	Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
805	805	Public Bank of Wisconsin, the Wisconsin Economic Development Corporation, or the
806	806	Bradley Center Sports and Entertainment Corporation for processing in accordance
807	807	with the department's procedures.
808	808	SECTION 29. 16.765 (7) (intro.) of the statutes is amended to read:
809	809	16.765 (7) (intro.) When a violation of this section has been determined by the
810	810	department, the contracting agency, the University of Wisconsin Hospitals and
811	811	Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
812	812	Aerospace Authority, the Lower Fox River Remediation Authority, the Public Bank
813	813	of Wisconsin, the Wisconsin Economic Development Corporation, or the Bradley
814	814	Center Sports and Entertainment Corporation, the contracting agency, the
815	815	University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational
816	816	System Authority, the Wisconsin Aerospace Authority, the Lower Fox River
817	817	Remediation Authority, the Public Bank of Wisconsin, the Wisconsin Economic
818	818	Development Corporation, or the Bradley Center Sports and Entertainment
819	819	Corporation shall:
820	820	SECTION 30. 16.765 (7) (d) of the statutes is amended to read:
821	821	16.765 (7) (d) Direct the violating party to take immediate steps to prevent
822	822	further violations of this section and to report its corrective action to the contracting
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848	848	ARG:amn
849	849	SECTION 30 ASSEMBLY BILL 1220
850	850	agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River
851	851	Navigational System Authority, the Wisconsin Aerospace Authority, the Lower Fox
852	852	River Remediation Authority, the Public Bank of Wisconsin, the Wisconsin Economic
853	853	Development Corporation, or the Bradley Center Sports and Entertainment
854	854	Corporation.
855	855	SECTION 31. 16.765 (8) of the statutes is amended to read:
856	856	16.765 (8) If further violations of this section are committed during the term
857	857	of the contract, the contracting agency, the Fox River Navigational System Authority,
858	858	the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
859	859	Public Bank of Wisconsin, the Wisconsin Economic Development Corporation, or the
860	860	Bradley Center Sports and Entertainment Corporation may permit the violating
861	861	party to complete the contract, after complying with this section, but thereafter the
862	862	contracting agency, the Fox River Navigational System Authority, the Wisconsin
863	863	Aerospace Authority, the Lower Fox River Remediation Authority, the Public Bank
864	864	of Wisconsin, the Wisconsin Economic Development Corporation, or the Bradley
865	865	Center Sports and Entertainment Corporation shall request the department to place
866	866	the name of the party on the ineligible list for state contracts, or the contracting
867	867	agency, the Fox River Navigational System Authority, the Wisconsin Aerospace
868	868	Authority, the Lower Fox River Remediation Authority, the Public Bank of
869	869	Wisconsin, the Wisconsin Economic Development Corporation, or the Bradley
870	870	Center Sports and Entertainment Corporation may terminate the contract without
871	871	liability for the uncompleted portion or any materials or services purchased or paid
872	872	for by the contracting party for use in completing the contract.
873	873	SECTION 32. 16.85 (2) of the statutes is amended to read:
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898	898	LRB-5652/1
899	899	ARG:amn
900	900	SECTION 32
901	901	ASSEMBLY BILL 1220
902	902	16.85 (2) To furnish engineering, architectural, project management, and other
903	903	building construction services whenever requisitions therefor are presented to the
904	904	department by any agency. The department may deposit moneys received from the
905	905	provision of these services in the account under s. 20.505 (1) (kc) or in the general
906	906	fund as general purpose revenue — earned. In this subsection, “agency" means an
907	907	office, department, independent agency, institution of higher education, association,
908	908	society, or other body in state government created or authorized to be created by the
909	909	constitution or any law, which is entitled to expend moneys appropriated by law,
910	910	including the legislature and the courts, but not including an authority created in
911	911	subch. II of ch. 114 or in ch. 231, 233, 234, 237, 238, 239, or 279.
912	912	SECTION 33. 16.865 (8) of the statutes is amended to read:
913	913	16.865 (8) Annually in each fiscal year, allocate as a charge to each agency a
914	914	proportionate share of the estimated costs attributable to programs administered by
915	915	the agency to be paid from the appropriation under s. 20.505 (2) (k). The department
916	916	may charge premiums to agencies to finance costs under this subsection and pay the
917	917	costs from the appropriation on an actual basis. The department shall deposit all
918	918	collections under this subsection in the appropriation account under s. 20.505 (2) (k).
919	919	Costs assessed under this subsection may include judgments, investigative and
920	920	adjustment fees, data processing and staff support costs, program administration
921	921	costs, litigation costs, and the cost of insurance contracts under sub. (5). In this
922	922	subsection, “agency" means an office, department, independent agency, institution
923	923	of higher education, association, society, or other body in state government created
924	924	or authorized to be created by the constitution or any law, that is entitled to expend
925	925	moneys appropriated by law, including the legislature and the courts, but not
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950	950	ARG:amn
951	951	SECTION 33 ASSEMBLY BILL 1220
952	952	including an authority created in subch. II of ch. 114 or in ch. 231, 232, 233, 234, 237,
953	953	238, 239, or 279.
954	954	SECTION 34. 19.42 (10) (t) of the statutes is created to read:
955	955	19.42 (10) (t) The chief executive officer and members of the governing board
956	956	of the Public Bank of Wisconsin.
957	957	SECTION 35. 19.42 (13) (s) of the statutes is created to read:
958	958	19.42 (13) (s) The chief executive officer and members of the governing board
959	959	of the Public Bank of Wisconsin.
960	960	SECTION 36. 20.005 (3) (schedule) of the statutes: at the appropriate place,
961	961	insert the following amounts for the purposes indicated:
962	962	2023-24 2024-25
963	963	20.195 Public Bank of Wisconsin
964	964	(1) LOAN PROGRAMS
965	965	(a)General program operations; ini
966	966	tial funding GPR C250,000,000 250,000,000
967	967	SECTION 37. 20.195 of the statutes is created to read:
968	968	20.195 Public Bank of Wisconsin. There is appropriated to the Public Bank
969	969	of Wisconsin for the following programs:
970	970	(1) LOAN PROGRAMS. (a) General program operations; initial funding. As a
971	971	continuing appropriation, the amounts in the schedule for the initial costs of
972	972	operating the Public Bank of Wisconsin and for initial funding for loans and other
973	973	banking activities under ch. 239.
974	974	SECTION 38. 20.907 (5) (e) 12r. of the statutes is amended to read:
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997	997	LRB-5652/1
998	998	ARG:amn
999	999	SECTION 38
1000	1000	ASSEMBLY BILL 1220
1001	1001	20.907 (5) (e) 12r. Transfers from the income account of the state investment
1002	1002	fund, to pay bank service costs under s. 34.045 (1) (bm).
1003	1003	SECTION 39. 34.03 (2) of the statutes is amended to read:
1004	1004	34.03 (2) Require any public depository or the trustees of segregated trusts
1005	1005	created by banks for the benefit of public depositors to furnish information upon
1006	1006	request. Any Except as provided in s. 34.05 (5), any public depository which refuses
1007	1007	or neglects to give any information so requested shall be excluded from the right to
1008	1008	receive public deposits. Information obtained under this subsection may not be
1009	1009	disclosed by the division of banking unless disclosed as provided in s. 220.06.
1010	1010	SECTION 40. 34.045 of the statutes is repealed.
1011	1011	SECTION 41. 34.05 (4) (intro.) of the statutes is amended to read:
1012	1012	34.05 (4) (intro.) Notwithstanding sub. (1), s. 66.0603 (1m) (a), or any other
1013	1013	provision of law, the governing board of a public depositor, other than the state, may
1014	1014	direct the treasurer of the governing board to deposit public moneys in a selected
1015	1015	public depository and, directly or through an authorized agent, instruct the public
1016	1016	depository to arrange for the redeposit of the moneys through a deposit placement
1017	1017	program that meets all of the following conditions:
1018	1018	SECTION 42. 34.05 (5) of the statutes is created to read:
1019	1019	34.05 (5) (a) Notwithstanding any other provision of this chapter, the Public
1020	1020	Bank of Wisconsin shall be a public depository of the state and, no later than January
1021	1021	1, 2028, the Public Bank of Wisconsin shall be the state's only public depository.
1022	1022	Except as provided in pars. (b) and (c), to accomplish this transition, the state's public
1023	1023	moneys shall be deposited as follows:
1024	1024	1. By January 1, 2025, at least 30 percent of the state's public deposits shall be
1025	1025	with the Public Bank of Wisconsin.
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1027	1027	2
1028	1028	3
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1051	1051	ARG:amn
1052	1052	SECTION 42 ASSEMBLY BILL 1220
1053	1053	2. By January 1, 2026, at least 50 percent of the state's public deposits shall be
1054	1054	with the Public Bank of Wisconsin.
1055	1055	3. By January 1, 2027, at least 80 percent of the state's public deposits shall be
1056	1056	with the Public Bank of Wisconsin.
1057	1057	4. By January 1, 2028, all of the state's public deposits shall be with the Public
1058	1058	Bank of Wisconsin.
1059	1059	(b) No later than November 1, 2024, the governing board of the Public Bank of
1060	1060	Wisconsin shall review state accounts to determine whether any public moneys
1061	1061	received by the state are unsuitable for deposit in the Public Bank of Wisconsin and
1062	1062	shall submit to the governor, to the secretary of administration, and to the chief clerk
1063	1063	of each house of the legislature, for distribution to the appropriate standing
1064	1064	committees under s. 13.172 (3), a report identifying any such public moneys. Upon
1065	1065	approval of the secretary of administration, such public moneys may not be deposited
1066	1066	in the Public Bank of Wisconsin.
1067	1067	(c) If the governing board of the Public Bank of Wisconsin, in consultation and
1068	1068	agreement with the secretary of administration, determines that the Public Bank of
1069	1069	Wisconsin does not have sufficient capacity to accept and manage the state's public
1070	1070	moneys, the deposit schedule under par. (a) shall be delayed and the governing board
1071	1071	shall provide to the secretary of administration a plan and time frame to begin such
1072	1072	deposits. Deposits may not be delayed under this paragraph beyond December 31,
1073	1073	2025.
1074	1074	SECTION 43. 34.07 of the statutes is amended to read:
1075	1075	34.07 Security. A surety bond or other security, including an irrevocable letter
1076	1076	of credit issued by a federal home loan bank, state bank, national bank, federal or
1077	1077	state savings bank, federal or state credit union, or federal or state savings and loan
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1079	1079	2
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1102	1102	25 - 23 -2023 - 2024 Legislature
1103	1103	LRB-5652/1
1104	1104	ARG:amn
1105	1105	SECTION 43
1106	1106	ASSEMBLY BILL 1220
1107	1107	association, may be required of or given by any public depository for any public
1108	1108	deposits that exceed the amount of deposit insurance provided by an agency of the
1109	1109	United States and the coverage provided under s. 34.08 (2). This section does not
1110	1110	apply with respect to the Public Bank of Wisconsin.
1111	1111	SECTION 44. 40.02 (54) (n) of the statutes is created to read:
1112	1112	40.02 (54) (n) The Public Bank of Wisconsin.
1113	1113	SECTION 45. 70.11 (38v) of the statutes is created to read:
1114	1114	70.11 (38v) PUBLIC BANK OF WISCONSIN. All property owned by the Public Bank
1115	1115	of Wisconsin, provided that use of the property is primarily related to the purposes
1116	1116	of the Public Bank of Wisconsin.
1117	1117	SECTION 46. 71.26 (1) (be) of the statutes is amended to read:
1118	1118	71.26 (1) (be) Certain authorities. Income of the University of Wisconsin
1119	1119	Hospitals and Clinics Authority, of the Fox River Navigational System Authority, of
1120	1120	the Wisconsin Economic Development Corporation, of the Public Bank of Wisconsin,
1121	1121	and of the Wisconsin Aerospace Authority.
1122	1122	SECTION 47. 77.54 (9a) (a) of the statutes is amended to read:
1123	1123	77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin
1124	1124	Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin
1125	1125	Economic Development Corporation, the Public Bank of Wisconsin, and the Fox
1126	1126	River Navigational System Authority.
1127	1127	SECTION 48. 100.45 (1) (dm) of the statutes is amended to read:
1128	1128	100.45 (1) (dm) “State agency" means any office, department, agency,
1129	1129	institution of higher education, association, society, or other body in state
1130	1130	government created or authorized to be created by the constitution or any law which
1131	1131	is entitled to expend moneys appropriated by law, including the legislature and the
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1156	1156	25 - 24 -2023 - 2024 Legislature LRB-5652/1
1157	1157	ARG:amn
1158	1158	SECTION 48 ASSEMBLY BILL 1220
1159	1159	courts, the Wisconsin Housing and Economic Development Authority, the Bradley
1160	1160	Center Sports and Entertainment Corporation, the University of W isconsin
1161	1161	Hospitals and Clinics Authority, the Wisconsin Health and Educational Facilities
1162	1162	Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic
1163	1163	Development Corporation, the Public Bank of Wisconsin, and the Fox River
1164	1164	Navigational System Authority.
1165	1165	SECTION 49. 230.03 (3) of the statutes is amended to read:
1166	1166	230.03 (3) “Agency" means any board, commission, committee, council, or
1167	1167	department in state government or a unit thereof created by the constitution or
1168	1168	statutes if such board, commission, committee, council, department, unit, or the
1169	1169	head thereof, is authorized to appoint subordinate staff by the constitution or
1170	1170	statute, except the Board of Regents of the University of Wisconsin System, a
1171	1171	legislative or judicial board, commission, committee, council, department, or unit
1172	1172	thereof or an authority created under subch. II of ch. 114 or under ch. 231, 232, 233,
1173	1173	234, 237, 238, 239, or 279. “Agency" does not mean any local unit of government or
1174	1174	body within one or more local units of government that is created by law or by action
1175	1175	of one or more local units of government.
1176	1176	SECTION 50. Chapter 239 of the statutes is created to read:
1177	1177	CHAPTER 239
1178	1178	PUBLIC BANK OF WISCONSIN
1179	1179	239.01 Definitions. In this chapter:
1180	1180	(1) “Affordable financing” means any of the following:
1181	1181	(a) As provided to an eligible recipient, any of the following:
1182	1182	1
1183	1183	2
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1204	1204	23 - 25 -2023 - 2024 Legislature
1205	1205	LRB-5652/1
1206	1206	ARG:amn
1207	1207	SECTION 50
1208	1208	ASSEMBLY BILL 1220
1209	1209	1. The provision of credit and loans, including long-term loans and unsecured
1210	1210	loans, at affordable rates and for which the Public Bank of Wisconsin employs
1211	1211	underwriting methods that are flexible in their criteria, terms, and uses.
1212	1212	2. The provision of letters of credit, guarantees, subordinate loans, and other
1213	1213	forms of risk management to facilitate additional financing from sources other than
1214	1214	the Public Bank of Wisconsin.
1215	1215	3. The provision of any type of financing authorized for a state bank organized
1216	1216	under ch. 221.
1217	1217	4. The provision of technical assistance.
1218	1218	(b) As provided to an eligible recipient under sub. (7) (c), (e), (h), or (k), any of
1219	1219	the following:
1220	1220	1. The provision of equity financing, including preferred stock, common stock,
1221	1221	equity-equivalent capital, and other hybrid instruments.
1222	1222	2. The provision of grants, donations, and contributions, including grants given
1223	1223	over a period of years to provide predictability for an eligible recipient.
1224	1224	(2) “Affordable housing” means any of the following:
1225	1225	(a) Affordable housing, as defined in s. 66.1105 (2) (ab).
1226	1226	(b) Low-income housing, as defined in s. 70.11 (4a) (b).
1227	1227	(3) “Board," except in the phrase “board of advisors,” means the governing
1228	1228	board of the Public Bank of Wisconsin.
1229	1229	(4) “Community development authority” means a housing and community
1230	1230	development authority organized under s. 66.1335.
1231	1231	(5) “Community development corporation” has the meaning given in s. 234.94
1232	1232	(2).
1233	1233	1
1234	1234	2
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1257	1257	ARG:amn
1258	1258	SECTION 50 ASSEMBLY BILL 1220
1259	1259	(6) “Division” means the division of banking in the department of financial
1260	1260	institutions.
1261	1261	(7) “Eligible recipient,” with respect to affordable financing provided by the
1262	1262	Public Bank of Wisconsin, means any of the following:
1263	1263	(a) Any local governmental unit or enterprise managed in whole or in part by
1264	1264	a local governmental unit.
1265	1265	(b) A nonprofit organization that has a primary goal of benefitting the state or
1266	1266	its residents through community development.
1267	1267	(c) A land trust.
1268	1268	(d) A cooperative organized under ch. 185 or 193.
1269	1269	(e) An entity created by financial institutions that pools funds to lend for
1270	1270	affordable housing development.
1271	1271	(f) A developer of housing or preservation projects if all the entities financing
1272	1272	a project invite the Public Bank of Wisconsin to participate with financing.
1273	1273	(g) A bank, savings bank, savings and loan association, or credit union
1274	1274	organized under the laws of this state if the affordable financing extended to the
1275	1275	bank, savings bank, savings and loan association, or credit union is used to support
1276	1276	another eligible recipient under this subsection.
1277	1277	(h) A community development authority, redevelopment authority, housing
1278	1278	authority, or community development corporation.
1279	1279	(i) A small business enterprise doing business primarily in this state that offers
1280	1280	a sustainable business plan and merits credit but is unable to procure affordable
1281	1281	financing from other financial institutions in this state.
1282	1282	(j) A small- or medium-sized farm and its related industries.
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1306	1306	24 - 27 -2023 - 2024 Legislature
1307	1307	LRB-5652/1
1308	1308	ARG:amn
1309	1309	SECTION 50
1310	1310	ASSEMBLY BILL 1220
1311	1311	(k) An investment vehicle created for the primary purpose of supporting
1312	1312	another eligible recipient under this subsection.
1313	1313	(8) “Housing authority” means a housing authority organized under ss.
1314	1314	66.1201 to 66.1213.
1315	1315	(9) “Land trust” means a nonstock corporation or other nonprofit organization
1316	1316	that acquires, manages, develops, or maintains land or easements to promote the
1317	1317	preservation or restoration of land in this state for recreational, agricultural, scenic,
1318	1318	residential, or commercial use, including for use related to climate security, water
1319	1319	resource protection, or affordable housing.
1320	1320	(10) “Local governmental unit" has the meaning given in s. 16.97 (7).
1321	1321	(11) “Minority group member" has the meaning given in s. 16.287 (1) (f).
1322	1322	(12) “Municipality” means a city, village, or town.
1323	1323	(13) “Nonprofit organization" has the meaning given in s. 23.097 (1).
1324	1324	(14) “Participation loan” means a loan in which the Public Bank of Wisconsin
1325	1325	shares in funding or overseeing an advance of credit under a written agreement
1326	1326	between the originator of the loan and the Public Bank of Wisconsin.
1327	1327	(15) “Public Bank of Wisconsin" or “Bank” means the authority created under
1328	1328	s. 239.02.
1329	1329	(16) “Public deposit” has the meaning given in s. 34.01 (3).
1330	1330	(17) “Redevelopment authority” means a redevelopment authority organized
1331	1331	under s. 66.1333.
1332	1332	(18) “Rural area” means a municipality with a population density of less than
1333	1333	500 persons per square mile, according to the latest federal decennial census.
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1356	1356	23 - 28 -2023 - 2024 Legislature LRB-5652/1
1357	1357	ARG:amn
1358	1358	SECTION 50 ASSEMBLY BILL 1220
1359	1359	(19) “Rural business concern” means a small business that has its principal
1360	1360	business operations in one or more rural areas and that is engaged in an occupation
1361	1361	that directly supports the economy of the rural area or areas in which it is located.
1362	1362	(20) “Small business” has the meaning given in s. 227.114 (1).
1363	1363	(21) “Underserved neighborhood” means a neighborhood that meets any of the
1364	1364	following criteria:
1365	1365	(a) The annual median household income in the neighborhood does not exceed
1366	1366	65 percent of the statewide annual median household income.
1367	1367	(b) Minority group members comprise at least 40 percent of the population in
1368	1368	the neighborhood.
1369	1369	(c) At least 25 percent of households in the neighborhood lack English language
1370	1370	proficiency.
1371	1371	(d) Minority group members comprise at least 25 percent of the population of
1372	1372	the neighborhood and the annual median household income of the municipality in
1373	1373	which the neighborhood is located does not exceed 150 percent of the statewide
1374	1374	annual median household income.
1375	1375	239.02 Creation of authority. (1) There is created an authority, which is a
1376	1376	public body corporate and politic, to be known as the “Public Bank of Wisconsin."
1377	1377	(2) The Public Bank of Wisconsin shall take all action necessary to organize as
1378	1378	a state bank under ch. 221.
1379	1379	239.03 Organization of authority; governing board; chief executive
1380	1380	officer. (1) All powers and duties of the Public Bank of Wisconsin shall be exercised
1381	1381	or carried out by a governing board appointed under this section, except to the extent
1382	1382	the board delegates the power or duty to an employee of the Bank or a committee
1383	1383	established by the board.
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1408	1408	25 - 29 -2023 - 2024 Legislature
1409	1409	LRB-5652/1
1410	1410	ARG:amn
1411	1411	SECTION 50
1412	1412	ASSEMBLY BILL 1220
1413	1413	(2) (a) Subject to the requirements under subs. (3) and (4), the board shall
1414	1414	consist of the following members:
1415	1415	1. The state treasurer or the state treasurer's designee.
1416	1416	2. The state superintendent of public instruction or the state superintendent's
1417	1417	designee.
1418	1418	3. The president of the University of Wisconsin System or the president's
1419	1419	designee.
1420	1420	4. One member with professional experience and expertise in the operation of
1421	1421	small business enterprises located in this state, appointed by the governor.
1422	1422	5. One member with professional experience and expertise in economic
1423	1423	development, appointed by the governor.
1424	1424	6. One member with professional experience and expertise in local government
1425	1425	and administration, appointed by the governor.
1426	1426	7. One member with professional experience and expertise in environmentally
1427	1427	conscious financing, appointed by the governor.
1428	1428	8. One member with professional experience and expertise in the operation of
1429	1429	state banks or state-chartered savings banks or savings and loan associations,
1430	1430	appointed by the governor.
1431	1431	9. One member with professional experience and expertise in the operation of
1432	1432	state-chartered credit unions, appointed by the governor.
1433	1433	10. One member with professional experience and expertise in public finance,
1434	1434	appointed by the governor.
1435	1435	11. One member with professional experience and expertise in the operation
1436	1436	of community development authorities, redevelopment authorities, housing
1437	1437	authorities, or community development corporations, appointed by the governor.
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1462	1462	25 - 30 -2023 - 2024 Legislature LRB-5652/1
1463	1463	ARG:amn
1464	1464	SECTION 50 ASSEMBLY BILL 1220
1465	1465	(b) The members under par. (a) 4. to 11. shall be appointed for a term of 4 years.
1466	1466	(3) (a) An individual may not serve as a board member unless the individual
1467	1467	is a resident of this state and, if appointed, was a resident of this state for at least
1468	1468	90 days before the appointment.
1469	1469	(b) Except for a board member described in sub. (2) (a) 1. to 3., an individual
1470	1470	may not serve as, or be appointed as, a board member if any of the following applies:
1471	1471	1. The individual holds a federal, state, or local elected or appointed office or
1472	1472	is a candidate for such an office.
1473	1473	2. The individual serves as an official in a political party.
1474	1474	3. Within the immediately preceding 4-year period, the individual held an
1475	1475	office described in subd. 1.
1476	1476	(c) An individual may not serve as a board member for more than 8 years.
1477	1477	(4) Each board member shall take an oath to faithfully and impartially execute
1478	1478	his or her duties as a board member.
1479	1479	(5) A vacancy on the board shall be filled in the same manner as the original
1480	1480	appointment to the board for the remainder of the unexpired term, if any.
1481	1481	(6) A member of the board may not be compensated for his or her services but
1482	1482	shall be reimbursed for actual and necessary expenses, including travel expenses,
1483	1483	incurred in the performance of his or her duties.
1484	1484	(7) The members of the board shall annually elect a chairperson and may elect
1485	1485	other officers as they consider appropriate. Upon motion of at least 6 board members,
1486	1486	the board shall hold a vote at a special meeting to retain or replace the board
1487	1487	chairperson.
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1510	1510	23 - 31 -2023 - 2024 Legislature
1511	1511	LRB-5652/1
1512	1512	ARG:amn
1513	1513	SECTION 50
1514	1514	ASSEMBLY BILL 1220
1515	1515	(8) Nine board members constitute a quorum of the board and the affirmative
1516	1516	vote of a majority of board members present and voting is required for any action of
1517	1517	the board, including election of the board chairperson.
1518	1518	(9) (a) The board shall meet quarterly and at any other time it considers
1519	1519	necessary or upon the written request of the board chairperson or 6 board members.
1520	1520	The board may hold meetings by means of remote communication.
1521	1521	(b) The board shall provide notice of any board meeting to all board members,
1522	1522	to the chairperson of the board of advisors, and to any other person who requests
1523	1523	notice.
1524	1524	(c) The board shall adopt procedures governing its meetings.
1525	1525	(d) All board meetings shall be staffed with a Bank officer to serve as the board
1526	1526	secretary. The board secretary shall keep a record of the proceedings of the board
1527	1527	meeting and shall be the custodian of all meeting records.
1528	1528	(e) The chairperson of the board of advisors or the chairperson's designee, or
1529	1529	both, may attend any board meetings as a nonvoting participant, except those
1530	1530	meetings authorized under ch. 19 to be conducted in closed session.
1531	1531	(10) (a) The board shall appoint a chief executive officer of the Bank who may
1532	1532	not be a member of the board and who shall serve at the pleasure of the board.
1533	1533	Notwithstanding sub. (8), appointment of the chief executive officer requires the
1534	1534	affirmative vote of at least 8 board members. At the discretion of the board
1535	1535	chairperson, the board may utilize a form of ranked-choice voting to ensure that the
1536	1536	8-vote threshold is satisfied.
1537	1537	(b) The board may delegate to the chief executive officer any powers and duties
1538	1538	the board considers proper.
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1562	1562	24 - 32 -2023 - 2024 Legislature LRB-5652/1
1563	1563	ARG:amn
1564	1564	SECTION 50 ASSEMBLY BILL 1220
1565	1565	(c) The board shall terminate the chief executive officer upon a vote of no
1566	1566	confidence in the chief executive officer by at least 8 board members. If this occurs,
1567	1567	the board shall immediately initiate the process of hiring a new chief executive
1568	1568	officer.
1569	1569	(d) If there is a vacancy, absence, or disability in the position of chief executive
1570	1570	officer, as determined by the board, then notwithstanding sub. (8), the board may,
1571	1571	upon the affirmative vote of 7 board members, designate an acting chief executive
1572	1572	officer who has similar qualifications to those required under this subsection for the
1573	1573	chief executive officer. An acting chief executive officer has all the powers and duties
1574	1574	of the chief executive officer.
1575	1575	(e) 1. The chief executive officer shall be compensated as determined by the
1576	1576	board and shall devote full time and attention to the duties of the office.
1577	1577	2. The chief executive officer shall have skill and experience in management
1578	1578	and banking.
1579	1579	3. The chief executive officer is the executive and administrative head of the
1580	1580	Bank and is responsible for the Bank's administration and the Bank's compliance
1581	1581	with this chapter. The chief executive officer is responsible for all aspects of the
1582	1582	Bank's management, including its physical facilities, investments, loan portfolio,
1583	1583	accounting, risk management, and regulatory compliance, as well as the
1584	1584	responsibilities specified in s. 239.05 (2).
1585	1585	4. The chief executive officer may employ other employees, consultants, agents,
1586	1586	and advisors, including legal counsel, and shall attend meetings of the board, except
1587	1587	those board meetings authorized under ch. 19 to be conducted in closed session.
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1589	1589	2
1590	1590	3
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1610	1610	23 - 33 -2023 - 2024 Legislature
1611	1611	LRB-5652/1
1612	1612	ARG:amn
1613	1613	SECTION 50
1614	1614	ASSEMBLY BILL 1220
1615	1615	239.035 Purpose of the Public Bank of Wisconsin. The purpose of the
1616	1616	Public Bank of Wisconsin is to accept and hold deposits of public funds and utilize
1617	1617	those funds in this state to further the Bank's goals to do all of the following:
1618	1618	(1) Accomplish the Bank's mission by adhering to priorities of institutional
1619	1619	safety and soundness as ensured by division supervision; long-term viability; social
1620	1620	return and monetary return on lending and investments; prudent and best banking
1621	1621	and business practices; highest ethical, accountability, and transparency standards;
1622	1622	and insulation from political influence.
1623	1623	(2) Support the expansion and development of public and private measures to
1624	1624	mitigate the grave dangers that climate change poses to the public and local
1625	1625	enterprises, and to promote reductions in greenhouse gas emissions.
1626	1626	(3) Promote economic development and job creation in this state, and support
1627	1627	the economic well-being and health of this state, by providing affordable financing
1628	1628	to eligible recipients and small- and medium-sized businesses, especially in
1629	1629	underserved communities.
1630	1630	(4) Assist businesses and municipalities in recovering from the economic
1631	1631	repercussions of external shocks, including pandemics, recessions, and natural
1632	1632	disasters.
1633	1633	(5) Respond to the unmet affordable financing needs of local governmental
1634	1634	units.
1635	1635	(6) Address the historic and current disadvantages experienced by the state's
1636	1636	minority-owned and women-owned enterprises by providing affordable financing.
1637	1637	(7) Assist workers and communities in creating jobs by supporting cooperative
1638	1638	business models including worker-owned cooperatives.
1639	1639	(8) Increase available affordable housing options for all residents of this state.
1640	1640	1
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1664	1664	25 - 34 -2023 - 2024 Legislature LRB-5652/1
1665	1665	ARG:amn
1666	1666	SECTION 50 ASSEMBLY BILL 1220
1667	1667	(9) Promote sustainable agriculture and address food insecurity, particularly
1668	1668	by providing financing to family-owned farms and rural businesses that serve them.
1669	1669	(10) Support nonprofit and community-based organizations that work to
1670	1670	address the results of racial injustice or to promote women's economic and social
1671	1671	equity or both.
1672	1672	(11) Provide economic support to state agencies, local governmental units, and
1673	1673	nonprofit organizations, including community development authorities,
1674	1674	redevelopment authorities, housing authorities, and community development
1675	1675	corporations.
1676	1676	(12) Strengthen state-chartered banks, particularly through participatory
1677	1677	loan programs.
1678	1678	(13) Enable the state to share in the methods of monetary support the federal
1679	1679	government provides to commercial banks.
1680	1680	(14) Assist students in need of additional low-cost student loans in financing
1681	1681	the cost of higher education.
1682	1682	239.04 Powers and duties of the Bank, board. (1) (a) Except as provided
1683	1683	in par. (e) and as otherwise provided in this chapter, the Public Bank of Wisconsin
1684	1684	shall have all the powers of a state bank organized under ch. 221.
1685	1685	(b) 1. The Public Bank of Wisconsin may, but is not required to, become a
1686	1686	member of the federal reserve system.
1687	1687	2. The Public Bank of Wisconsin may, but is not required to, become a member
1688	1688	of the federal deposit insurance corporation.
1689	1689	3. The Public Bank of Wisconsin may, but is not required to, establish a master
1690	1690	account with the federal reserve system to enhance the Bank's liquidity.
1691	1691	1
1692	1692	2
1693	1693	3
1694	1694	4
1695	1695	5
1696	1696	6
1697	1697	7
1698	1698	8
1699	1699	9
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1702	1702	12
1703	1703	13
1704	1704	14
1705	1705	15
1706	1706	16
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1708	1708	18
1709	1709	19
1710	1710	20
1711	1711	21
1712	1712	22
1713	1713	23
1714	1714	24 - 35 -2023 - 2024 Legislature
1715	1715	LRB-5652/1
1716	1716	ARG:amn
1717	1717	SECTION 50
1718	1718	ASSEMBLY BILL 1220
1719	1719	(c) The Public Bank of Wisconsin may conduct operations or engage in activities
1720	1720	through subsidiaries to the same extent as other state banks organized under ch.
1721	1721	221, but these subsidiaries are subject to any restriction or limitation applicable if
1722	1722	the Bank directly conducted the operation or engaged in the activity.
1723	1723	(d) The Public Bank of Wisconsin may accept and solicit property, including any
1724	1724	gifts, donations, grants, bequests, loans, public funds, or other private contributions,
1725	1725	for any of the purposes of this chapter.
1726	1726	(e) The Public Bank of Wisconsin may accept public deposits and open deposit
1727	1727	accounts only as provided in sub. (7) (d) and s. 34.05 (5). The Public Bank of
1728	1728	Wisconsin may not pay interest on deposit accounts.
1729	1729	(f) The Public Bank of Wisconsin shall maintain complete records of all banking
1730	1730	transactions.
1731	1731	(g) The board shall establish technical advisory committees and consult with
1732	1732	public and private sector experts in substantive areas related to the Bank's mission,
1733	1733	objectives, and duties.
1734	1734	(2) (a) The board shall have all the powers necessary or convenient to carry out
1735	1735	the purposes and provisions of this chapter.
1736	1736	(b) 1. The board shall operate the Bank to ensure its soundness and
1737	1737	sustainability and, subject to subd. 2., to accomplish the Bank's purposes under this
1738	1738	chapter. The board shall adhere to the operating priorities identified in s. 239.035
1739	1739	(1).
1740	1740	2. The board may direct the Bank's annual earnings to be added to the Bank's
1741	1741	capital or distributed to the state, and the board may direct Bank deposits to be
1742	1742	invested in the state investment fund under s. 25.14.
1743	1743	1
1744	1744	2
1745	1745	3
1746	1746	4
1747	1747	5
1748	1748	6
1749	1749	7
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1755	1755	13
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1757	1757	15
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1761	1761	19
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1764	1764	22
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1766	1766	24 - 36 -2023 - 2024 Legislature LRB-5652/1
1767	1767	ARG:amn
1768	1768	SECTION 50 ASSEMBLY BILL 1220
1769	1769	(c) The board shall regularly review the Bank's financial statements and other
1770	1770	records to ensure that the Bank is in compliance with all applicable laws and
1771	1771	regulations and with all reporting requirements under s. 239.08 (1).
1772	1772	(d) The board shall keep the board of advisors fully informed of the Bank's
1773	1773	operations and loan portfolio and shall convey the recommendations of the board of
1774	1774	advisors to the Bank's chief executive officer. The board shall hold an annual joint
1775	1775	meeting of the board with the board of advisors and the Bank's chief executive officer.
1776	1776	The board chairperson shall preside over this meeting. If requested by a majority
1777	1777	of the members of the board of advisors, the board shall schedule and hold additional
1778	1778	joint meetings in the same year as the annual joint meeting.
1779	1779	(e) In conducting its operations, the Public Bank of Wisconsin shall comply with
1780	1780	its business plan under s. 239.05 and further give priority to the following
1781	1781	considerations:
1782	1782	1. Supporting eligible recipients subject to the historic and current economic
1783	1783	inequities experienced by communities in underserved neighborhoods, including
1784	1784	enterprises established by residents there, as well as eligible recipients working to
1785	1785	remedy those inequities.
1786	1786	2. Supporting eligible recipients subject to the historic and current economic
1787	1787	inequities experienced by women throughout the state.
1788	1788	3. Supporting rural business and farming concerns.
1789	1789	4. Supporting businesses with compensation structures that provide a livable
1790	1790	wage, establish an equitable ratio between the least-paid and highest-paid
1791	1791	members of the business, or otherwise demonstrate a commitment to equitable pay.
1792	1792	5. Supporting entities that address the impacts of climate change and the
1793	1793	reduction of greenhouse gases.
1794	1794	1
1795	1795	2
1796	1796	3
1797	1797	4
1798	1798	5
1799	1799	6
1800	1800	7
1801	1801	8
1802	1802	9
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1816	1816	23
1817	1817	24
1818	1818	25 - 37 -2023 - 2024 Legislature
1819	1819	LRB-5652/1
1820	1820	ARG:amn
1821	1821	SECTION 50
1822	1822	ASSEMBLY BILL 1220
1823	1823	6. Funding the need of municipalities to update and build safe and sustainable
1824	1824	infrastructure.
1825	1825	7. Supporting the operation of local governmental units, nonprofit
1826	1826	organizations, credit unions, local community banks, community development
1827	1827	authorities, redevelopment authorities, housing authorities, community
1828	1828	development corporations, and state-chartered financial institutions, including by
1829	1829	complementing or partnering rather than competing with these entities to
1830	1830	strengthen them and to expand affordable financing in the state.
1831	1831	8. Seeking participation loan options with the entities under subd. 7., when
1832	1832	appropriate, rather than originating or servicing the loan itself.
1833	1833	9. Promoting equitable distribution of the Bank's resources across the state,
1834	1834	including ensuring that rural areas are given full and fair consideration and have
1835	1835	all necessary support in completing the application process.
1836	1836	(3) In addition to all other powers granted the board under this chapter, the
1837	1837	board may specifically do any of the following:
1838	1838	(a) Adopt, amend, and repeal bylaws, policies, and procedures for the
1839	1839	regulation of its affairs and the conduct of its business.
1840	1840	(b) Sue and be sued.
1841	1841	(c) Establish the Public Bank of Wisconsin's annual budget and monitor the
1842	1842	fiscal management of the Bank.
1843	1843	(d) Execute contracts and other instruments required for the operation of the
1844	1844	Public Bank of Wisconsin.
1845	1845	(e) Make loans and incur debt and other nondeposit liabilities, including money
1846	1846	market borrowing, federal reserve borrowing, and capital market borrowing.
1847	1847	(f) Procure liability insurance.
1848	1848	1
1849	1849	2
1850	1850	3
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1872	1872	25 - 38 -2023 - 2024 Legislature LRB-5652/1
1873	1873	ARG:amn
1874	1874	SECTION 50 ASSEMBLY BILL 1220
1875	1875	(g) Employ officers, staff, and agents and determine their qualifications,
1876	1876	duties, and compensation.
1877	1877	(h) Employ and compensate consultants, advisers, or other professionals to
1878	1878	assist the board in carrying out its functions and exercising its authority under this
1879	1879	chapter.
1880	1880	(4) (a) In this subsection, “labor peace agreement” means an agreement
1881	1881	between an eligible recipient and a labor organization, as defined in s. 5.02 (8m), that
1882	1882	does all of the following:
1883	1883	1. Prohibits labor organizations and its members from engaging in picketing,
1884	1884	work stoppages, boycotts, and any other economic interference with persons
1885	1885	operating in this state.
1886	1886	2. Prohibits the eligible recipient from disrupting the efforts of the labor
1887	1887	organization to communicate with and to organize and represent the eligible
1888	1888	recipient's employees.
1889	1889	3. Provides the labor organization access at reasonable times to areas in which
1890	1890	the eligible recipient's employees work for the purpose of meeting with employees to
1891	1891	discuss their right to representation, employment rights under state law, and terms
1892	1892	and conditions of employment.
1893	1893	(b) Subject to par. (c), the Public Bank of Wisconsin shall use its powers to
1894	1894	extend affordable financing to eligible recipients.
1895	1895	(c) The Public Bank of Wisconsin may not extend affordable financing to an
1896	1896	eligible recipient unless the eligible recipient does all of the following:
1897	1897	1. Certifies to the Bank that the eligible recipient has entered into a labor peace
1898	1898	agreement and will abide by the terms of the agreement as a condition of receiving
1899	1899	the affordable financing.
1900	1900	1
1901	1901	2
1902	1902	3
1903	1903	4
1904	1904	5
1905	1905	6
1906	1906	7
1907	1907	8
1908	1908	9
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1911	1911	12
1912	1912	13
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1914	1914	15
1915	1915	16
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1924	1924	25 - 39 -2023 - 2024 Legislature
1925	1925	LRB-5652/1
1926	1926	ARG:amn
1927	1927	SECTION 50
1928	1928	ASSEMBLY BILL 1220
1929	1929	2. Submits to the Bank a copy of the page of the labor peace agreement that
1930	1930	contains the signatures of the labor organization representative and the
1931	1931	representative of the eligible recipient.
1932	1932	(5) (a) The board may facilitate investment in, and financing of, construction,
1933	1933	rehabilitation, replacement, and improvement of new and existing public
1934	1934	infrastructure systems.
1935	1935	(b) Before initiating operations under par. (a), the board shall submit to the
1936	1936	governor and to the chief clerk of each house of the legislature, for distribution to the
1937	1937	appropriate standing committees under s. 13.172 (3), an implementation plan,
1938	1938	including a proposal for any necessary legislation, that includes all of the following:
1939	1939	1. Identification of the public infrastructure systems that the Bank plans to
1940	1940	initially target.
1941	1941	2. Identification of any existing state programs that the Bank recommends be
1942	1942	transferred under its authority, and the steps and timelines for the transitions.
1943	1943	3. A description of additional financing products and services the Bank plans
1944	1944	to offer, the target markets, and anticipated rates, terms, and conditions.
1945	1945	4. A demonstration of how Bank products and services will increase access to
1946	1946	capital for public infrastructure systems and complement those of existing public
1947	1947	and private sources.
1948	1948	5. A demonstration of how the Bank plans to maximize public benefit.
1949	1949	(6) (a) The Public Bank of Wisconsin, in partnership with independent
1950	1950	community banks, credit unions, or community development corporations, may
1951	1951	administer a state guarantee loan program to assist students in need of low-cost
1952	1952	student loans and related loan benefits to address educational needs as necessary to
1953	1953	support student success, including the refinancing of existing student loan debt.
1954	1954	1
1955	1955	2
1956	1956	3
1957	1957	4
1958	1958	5
1959	1959	6
1960	1960	7
1961	1961	8
1962	1962	9
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1976	1976	23
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1978	1978	25 - 40 -2023 - 2024 Legislature LRB-5652/1
1979	1979	ARG:amn
1980	1980	SECTION 50 ASSEMBLY BILL 1220
1981	1981	(b) The board shall develop an implementation plan for the program under par.
1982	1982	(a). The implementation plan shall include all of the following:
1983	1983	1. Identification of the needs and benefits to selected students that the program
1984	1984	will initially target.
1985	1985	2. The policies and criteria that the Bank will use to balance public benefit and
1986	1986	public risk.
1987	1987	3. Identification of the ways that the program will address all of the following
1988	1988	issues related to loans:
1989	1989	a. Qualification criteria for students.
1990	1990	b. Obligations and options for loan repayment.
1991	1991	c. Requirements for loan guarantees and reserves.
1992	1992	d. Establishing criteria for refinancing existing debt.
1993	1993	e. Fee and interest rate structures.
1994	1994	f. Maximum loan amounts.
1995	1995	g. Ensuring student awareness of grants, federal loans, and other financial aid
1996	1996	programs.
1997	1997	(7) (a) The Public Bank of Wisconsin, in partnership with independent
1998	1998	community banks, credit unions, community development authorities,
1999	1999	redevelopment authorities, housing authorities, or community development
2000	2000	corporations, may do any of the following:
2001	2001	1. Leverage at least 30 percent of public deposits as financial capital and
2002	2002	resources to provide access to low-cost capital or credit or both to small businesses,
2003	2003	minority-owned and women-owned business enterprises, entrepreneurs, start-up
2004	2004	businesses, farmers, and communities and individuals of this state having below
2005	2005	average income, to further economic growth, create jobs, reduce greenhouse gases,
2006	2006	1
2007	2007	2
2008	2008	3
2009	2009	4
2010	2010	5
2011	2011	6
2012	2012	7
2013	2013	8
2014	2014	9
2015	2015	10
2016	2016	11
2017	2017	12
2018	2018	13
2019	2019	14
2020	2020	15
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2025	2025	20
2026	2026	21
2027	2027	22
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2029	2029	24
2030	2030	25 - 41 -2023 - 2024 Legislature
2031	2031	LRB-5652/1
2032	2032	ARG:amn
2033	2033	SECTION 50
2034	2034	ASSEMBLY BILL 1220
2035	2035	and build and sustain affordable housing for this state's residents, as provided under
2036	2036	this subsection.
2037	2037	2. Leverage the Bank's financial capital and resources to provide access to
2038	2038	low-cost capital to bring fiscally sound and financially successful businesses into
2039	2039	this state, as provided under this subsection.
2040	2040	3. Leverage the Bank's financial capital and resources to provide access to
2041	2041	low-cost capital or credit or both to established businesses in this state for the
2042	2042	purpose of providing financial stability for the Bank, as provided under this
2043	2043	subsection.
2044	2044	(b) The Public Bank of Wisconsin may make loans in the form of participation
2045	2045	loans with community banks, credit unions, community development authorities,
2046	2046	redevelopment authorities, housing authorities, and community development
2047	2047	corporations in this state, to qualified individuals and businesses residing or doing
2048	2048	business in this state if the originator of the loan is a financial institution chartered
2049	2049	under ch. 186, 214, 215, or 221.
2050	2050	(c) The Public Bank of Wisconsin may serve as a banker's bank for this state's
2051	2051	state-chartered financial institutions by providing correspondent banking services
2052	2052	and other related services for these financial institutions in unbanked and
2053	2053	underserved communities. The Bank may not compete with this state' s
2054	2054	state-chartered financial institutions, particularly in unbanked and underserved
2055	2055	communities.
2056	2056	(d) The Public Bank of Wisconsin may accept deposits related to transactions
2057	2057	under par. (c) from this state's state-chartered financial institutions.
2058	2058	(8) (a) 1. For financial institutions that make the Public Bank of Wisconsin a
2059	2059	reserve depository, the Bank may serve as a clearinghouse, including all facilities for
2060	2060	1
2061	2061	2
2062	2062	3
2063	2063	4
2064	2064	5
2065	2065	6
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2079	2079	20
2080	2080	21
2081	2081	22
2082	2082	23
2083	2083	24
2084	2084	25 - 42 -2023 - 2024 Legislature LRB-5652/1
2085	2085	ARG:amn
2086	2086	SECTION 50 ASSEMBLY BILL 1220
2087	2087	providing domestic and foreign exchange, and may rediscount paper, on terms the
2088	2088	board provides.
2089	2089	2. The Bank may provide corporate trust services for the state, including
2090	2090	trustee, escrow agent, paying agent, bond registrar, and transfer agent.
2091	2091	3. The Bank may buy and sell federal funds; issue letters of credit for public
2092	2092	deposits; and provide a safekeeping service for United States treasury securities,
2093	2093	federal agency securities, corporate bonds, tax-free bonds, money market
2094	2094	investments, and mortgage-backed securities.
2095	2095	(b) The Bank shall provide to the state all reasonable and necessary depository
2096	2096	services and may charge its cost of services to the state.
2097	2097	(c) The secretary of administration and the board shall together ensure that the
2098	2098	Bank maintains at all times cash or demand deposits in an amount needed to meet
2099	2099	the operational needs of the state.
2100	2100	239.05 Business plan. (1) The Public Bank of Wisconsin shall develop and
2101	2101	maintain a business plan that sets forth the Bank's strategy for accomplishing its
2102	2102	statutory directives through safe and sound operation of the Bank. In developing the
2103	2103	business plan, the Bank shall give priority to the considerations specified in s. 239.04
2104	2104	(2) (e). The business plan shall include the method of providing security or insurance
2105	2105	for the public deposits that the Bank receives. The Bank shall make the business
2106	2106	plan available to the public. The business plan shall be updated at least once every
2107	2107	4 years.
2108	2108	(2) (a) The chief executive officer of the Bank is responsible for developing the
2109	2109	business plan and, upon approval by the board, for implementing the business plan
2110	2110	and managing the Bank consistently with the business plan.
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2135	2135	LRB-5652/1
2136	2136	ARG:amn
2137	2137	SECTION 50
2138	2138	ASSEMBLY BILL 1220
2139	2139	(b) The chief executive officer shall send a draft of the business plan to the board
2140	2140	and, at the same time, to the chairperson of the board of advisors at least 30 days
2141	2141	before the board of advisors' next scheduled quarterly meeting. The board of advisors
2142	2142	shall immediately make the draft business plan publicly accessible on the board of
2143	2143	advisors' website and shall publicly announce that the draft is available for public
2144	2144	comment through the board of advisors' comments portal. Within 30 days after the
2145	2145	board of advisors' quarterly meeting, the chairperson of the board of advisors shall
2146	2146	combine the comments and suggestions of the members of the board of advisors,
2147	2147	along with any public input that the board of advisors considers pertinent, into a
2148	2148	concise list of recommended modifications to the business plan and shall distribute
2149	2149	those recommendations to the members of the board of advisors and to the board.
2150	2150	The board shall promptly convey these recommendations, together with any
2151	2151	comments of its own, to the chief executive officer. The chief executive officer shall
2152	2152	then prepare a new draft business plan taking these recommendations into account
2153	2153	as the chief executive officer sees fit and shall convey the new draft business plan to
2154	2154	the board and to the board of advisors within 30 days of the recommendations'
2155	2155	receipt. The board of advisors' comments and recommendations, together with the
2156	2156	public's input from the board of advisors' meetings and from the comments portal and
2157	2157	the business plan approved under sub. (3), shall be made publicly available on the
2158	2158	board of advisors' website.
2159	2159	(3) (a) The board is responsible for reviewing and approving the business plan
2160	2160	developed under sub. (2). Notwithstanding s. 239.03 (8), approval of the business
2161	2161	plan requires the affirmative vote of at least 8 board members.
2162	2162	(b) Within 30 days of receiving the updated draft business plan under sub. (2)
2163	2163	(b), the board shall vote upon approval of the business plan at a regularly scheduled
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2188	2188	25 - 44 -2023 - 2024 Legislature LRB-5652/1
2189	2189	ARG:amn
2190	2190	SECTION 50 ASSEMBLY BILL 1220
2191	2191	or special meeting of the board. In approving the business plan, the board shall
2192	2192	ensure that the business plan pays due attention to the recommendations of the
2193	2193	Bank's board of advisors. After approving the business plan, the board shall monitor
2194	2194	the Bank's compliance with the business plan.
2195	2195	(c) If the board holds a vote under par. (b) on a draft business plan and the board
2196	2196	fails to approve the draft business plan, the process under sub. (2) shall be repeated
2197	2197	until the board approves a business plan. Upon the 3rd consecutive failure of the
2198	2198	board to approve a draft business plan in a vote under par. (b), the board shall
2199	2199	terminate the chief executive officer who developed the failed business plans and
2200	2200	hire a new chief executive officer to begin the process again.
2201	2201	(4) (a) After the board's approval of the business plan under sub. (3), the
2202	2202	business plan may not be overridden by the board except through a declaration of
2203	2203	emergency under par. (b).
2204	2204	(b) In the event of a natural or man-made disaster, the board shall declare a
2205	2205	state of emergency that requires the chief executive officer to override the business
2206	2206	plan in the manner the board considers necessary to address and recover from the
2207	2207	disaster. Notwithstanding s. 239.03 (8), the board's declaration of a state of
2208	2208	emergency requires the affirmative vote of at least 9 board members and may only
2209	2209	be made after consultation with the chairperson of the board of advisors. The
2210	2210	declaration of a state of emergency shall specify the duration of the emergency, which
2211	2211	may not exceed one year. Notwithstanding s. 239.03 (8), at the conclusion of this
2212	2212	one-year period, the board may extend the declaration of a state of emergency for an
2213	2213	additional one-year period upon the affirmative vote of at least 9 board members.
2214	2214	(5) In making its examination of the Public Bank of Wisconsin under s. 220.04
2215	2215	(1) (a), the division shall assess the Public Bank of Wisconsin's compliance with the
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2240	2240	25 - 45 -2023 - 2024 Legislature
2241	2241	LRB-5652/1
2242	2242	ARG:amn
2243	2243	SECTION 50
2244	2244	ASSEMBLY BILL 1220
2245	2245	business plan. Notwithstanding s. 220.06 (3) (a), the division's assessment of the
2246	2246	Public Bank of Wisconsin's compliance with the business plan shall be made
2247	2247	available to the public beginning 6 months after the date on which the examination
2248	2248	is concluded.
2249	2249	239.06 Board of advisors. (1) (a) At its quarterly meetings, the board of
2250	2250	advisors shall review the activities of the Public Bank of W isconsin.
2251	2251	Notwithstanding any provision in ch. 19, the board of advisors shall provide public
2252	2252	notice of its meetings at least 30 days before the meeting. The chairperson of the
2253	2253	board of advisors may attend all meetings of the Bank's board and be recognized to
2254	2254	speak, except those meetings authorized under ch. 19 to be conducted in closed
2255	2255	session.
2256	2256	(b) The board of advisors shall maintain a website for the board of advisors and
2257	2257	shall ensure that the public has an opportunity to provide input to the board of
2258	2258	advisors on an ongoing basis through an Internet-based comments portal. The
2259	2259	board of advisors shall make the establishment of the comments portal its first order
2260	2260	of business and shall provide the Bank's board, as well as the chief executive officer
2261	2261	and staff of the Bank, full access to the portal. The chairperson of the board of
2262	2262	advisors is responsible for managing the comments portal and shall ensure that the
2263	2263	comments on the portal are fully accessible to the public.
2264	2264	(2) The board of advisors' responsibilities include all of the following:
2265	2265	(a) Establishing rules of procedure for the board of advisors.
2266	2266	(b) Scheduling and publicizing the quarterly meetings of the board of advisors
2267	2267	and providing to the public, on a timely basis, the minutes of these meetings.
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2290	2290	23 - 46 -2023 - 2024 Legislature LRB-5652/1
2291	2291	ARG:amn
2292	2292	SECTION 50 ASSEMBLY BILL 1220
2293	2293	(c) Establishing an Internet-based comments portal for the public to review
2294	2294	and comment on the activities of the Public Bank of Wisconsin and make proposals
2295	2295	regarding future initiatives for the Bank's consideration.
2296	2296	(d) Reviewing the Bank's draft business plan and providing feedback as
2297	2297	described in s. 239.05.
2298	2298	(e) Communicating to the Bank's board and chief executive officer policy
2299	2299	recommendations and any significant concerns arising from the board of advisors'
2300	2300	quarterly meetings or from its comments portal.
2301	2301	(3) The Public Bank of Wisconsin shall pay from its operating budget all
2302	2302	expenses incurred by the board of advisors in fulfilling its obligations, including the
2303	2303	expenses related to the comments portal and any stipend or per diem under s. 15.07
2304	2304	(5) (g).
2305	2305	239.07 Conflicts of interest. (1) The Public Bank of Wisconsin may not
2306	2306	transact business with or extend financing to any of the following:
2307	2307	(a) A member of the board.
2308	2308	(b) An officer of the Public Bank of Wisconsin.
2309	2309	(c) A member of the board of advisors.
2310	2310	(d) An immediate family member of any person under par. (a), (b), or (c).
2311	2311	(e) An entity in which a person under par. (a) or (b) has an interest.
2312	2312	(2) The prohibition under sub. (1) shall remain in effect for 4 years after the
2313	2313	person under sub. (1) (a) or (b) is no longer a board member or officer.
2314	2314	(3) Subsection (1) does not prohibit the Public Bank of Wisconsin from
2315	2315	transacting business with or extending financing to an entity with which a member
2316	2316	of the board of advisors is associated.
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2340	2340	24 - 47 -2023 - 2024 Legislature
2341	2341	LRB-5652/1
2342	2342	ARG:amn
2343	2343	SECTION 50
2344	2344	ASSEMBLY BILL 1220
2345	2345	239.08 Reports; confidential information. (1) Annually, on or before April
2346	2346	15, the board shall submit to the governor and to the chief clerk of each house of the
2347	2347	legislature under s. 13.172 (2) a report that includes all of the following for the prior
2348	2348	calendar year:
2349	2349	(a) Audited financial statements of the Public Bank of Wisconsin.
2350	2350	(b) A description of the benefits of the Bank's activities to the state, including
2351	2351	all of the following:
2352	2352	1. Analysis of the extent to which the Bank was able to meet affordable
2353	2353	financing priorities.
2354	2354	2. For each type of eligible recipient, the number of recipients to whom the Bank
2355	2355	extended affordable financing and the total principal amount of financing provided
2356	2356	to each type of eligible recipient.
2357	2357	3. A description of the main forms of affordable financing provided by the Bank
2358	2358	in each county of the state.
2359	2359	(c) A statement identifying the compensation paid by the Bank to the Bank's
2360	2360	board members, the Bank's chief executive officer, and the other employees and
2361	2361	consultants of the Bank.
2362	2362	(2) Annually, on or before April 15, the secretary of administration shall submit
2363	2363	to the governor and to the chief clerk of each house of the legislature under s. 13.172
2364	2364	(2) a report that identifies, for the prior calendar year, each public depository, as
2365	2365	defined in s. 34.01 (5), used by the state and the current and average amount of cash
2366	2366	and cash equivalents held by the state in each public depository.
2367	2367	(3) (a) The board shall make all reports under sub. (1) available to the public.
2368	2368	(b) The board shall maintain as confidential the identity and financial
2369	2369	information of all eligible recipients.
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2394	2394	25 - 48 -2023 - 2024 Legislature LRB-5652/1
2395	2395	ARG:amn
2396	2396	SECTION 50 ASSEMBLY BILL 1220
2397	2397	239.09 Liability limited. Neither the state nor any political subdivision of
2398	2398	the state, nor any officer, employee, or agent of the state or a political subdivision of
2399	2399	the state who is acting within the scope of employment or agency, is liable for any
2400	2400	debt, obligation, act, or omission of the Public Bank of Wisconsin.
2401	2401	SECTION 51.0Nonstatutory provisions.
2402	2402	(1) PUBLIC BANK OF WISCONSIN.
2403	2403	(a) Notwithstanding the length of terms specified in s. 239.03 (2) (b), the initial
2404	2404	members of the governing board of the Public Bank of Wisconsin appointed under s.
2405	2405	239.03 (2) (a) 5., 7., 9, and 11. shall be appointed for initial terms of 2 years.
2406	2406	(b) The initial members of the governing board of the Public Bank of Wisconsin
2407	2407	shall be appointed no later than 120 days after the effective date of this paragraph.
2408	2408	(c) The governing board of the Public Bank of Wisconsin shall elect the board's
2409	2409	officers, including the board chairperson, at its first meeting. Initial board meetings
2410	2410	shall be staffed by an interim board employee acting as secretary.
2411	2411	(d) The chairperson of the governing board of the Public Bank of Wisconsin
2412	2412	shall publicly solicit applications for the chief executive officer position immediately
2413	2413	upon the chairperson's appointment by the board. The board shall expeditiously hire
2414	2414	the chief executive officer. The chief executive officer shall cause to be drafted the
2415	2415	initial business plan no later than one year after being hired by the board.
2416	2416	(2) BOARD OF ADVISORS.
2417	2417	(a) Notwithstanding the length of terms specified for the members of the board
2418	2418	of advisors under s. 15.185 (3) (b), the following initial members of the board of
2419	2419	advisors shall be appointed for initial terms of 2 years:
2420	2420	1. The members appointed under s. 15.185 (3) (a) 3., 8., and 10.
2421	2421	2. One of the members appointed under s. 15.185 (3) (a) 5.
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2446	2446	25 - 49 -2023 - 2024 Legislature
2447	2447	LRB-5652/1
2448	2448	ARG:amn
2449	2449	SECTION 51
2450	2450	ASSEMBLY BILL 1220
2451	2451	3. One of the members appointed under s. 15.185 (3) (a) 6.
2452	2452	4. One of the members appointed under s. 15.185 (3) (a) 7.
2453	2453	5. One of the members appointed under s. 15.185 (3) (a) 12.
2454	2454	6. One of the members appointed under s. 15.185 (3) (a) 13.
2455	2455	(b) The initial members of the board of advisors shall be appointed no later than
2456	2456	90 days after the appointment of the last appointed member of the governing board
2457	2457	of the Public Bank of Wisconsin.
2458	2458	(c) The board of advisors shall elect a chairperson at its first meeting, who shall
2459	2459	serve a term of 2 years as chairperson.
2460	2460	(3) EXISTING DEPOSITORY AGREEMENTS.
2461	2461	(a) In this subsection:
2462	2462	1. “Public depository” has the meaning given in s. 34.01 (5).
2463	2463	2. “Public moneys” has the meaning given in s. 34.01 (6).
2464	2464	(b) Notwithstanding s. 34.05 (5), if the deposit of public moneys in the Public
2465	2465	Bank of Wisconsin would result in the state breaching a contract with a public
2466	2466	depository that is in effect on the effective date of this paragraph, the state may defer
2467	2467	the deposit of public moneys under s. 34.05 (5) until the deposit does not result in a
2468	2468	breach of the state's contract. However, if the existence of such a contract requires
2469	2469	the state to defer deposits under this paragraph, the state shall take all action
2470	2470	necessary to rightfully terminate the contract at the earliest date possible and may
2471	2471	not renew or otherwise extend the contract term.
2472	2472	SECTION 52.0Effective dates. This act takes effect on the day after publication,
2473	2473	except as follows:
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2496	2496	23 - 50 -2023 - 2024 Legislature LRB-5652/1
2497	2497	ARG:amn
2498	2498	SECTION 52 ASSEMBLY BILL 1220
2499	2499	(1) PUBLIC DEPOSITORY REQUIREMENTS. The treatment of ss. 20.907 (5) (e) 12r.
2500	2500	and 34.045 takes effect on January 1, 2028.
2501	2501	(END)
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