Wisconsin Senate Bill SB1106

Wisconsin 2023-2024 Regular Session

• Introduced: 4/11/24
• Refer: 4/11/24
• Failed: 4/15/24

Caption

Creating an authority to be known as the Public Bank of Wisconsin and making an appropriation. (FE)

Summary

Senate Bill 1106 establishes the Public Bank of Wisconsin, designed to accept and manage public funds to enhance financial support for underserved communities and local economies. The Public Bank's mission focuses on promoting economic growth by providing affordable financing to eligible entities, including local governments, nonprofits, and small businesses. It aims to address historical inequities faced by women and minority-owned enterprises and to bolster community development through strategic financial initiatives. One of the key features of SB1106 is its requirement for the state to deposit public funds into the Public Bank gradually, reaching full compliance by 2028. This phase-in approach emphasizes the importance of ensuring that the Public Bank can develop and maintain a sustainable operational model. The legislative framework empowers the Public Bank to function with similar authority to a state-chartered bank, albeit with some limitations on its operation and the types of deposits it can accept. The bill has raised points of contention, particularly regarding its oversight and safeguards against potential conflicts of interest. While it mandates that the Public Bank operate transparently—subject to open records and open meetings laws—concerns persist about how effectively these measures will protect public resources. Notable is the creation of a Board of Advisors intended to oversee the Public Bank's activities and ensure community engagement in its operations, which proponents argue will foster accountability. In terms of impact on state law, SB1106 significantly alters the landscape for financial governance within Wisconsin by establishing a state-managed entity dedicated to public financial oversight that emphasizes equity and sustainability. The regulations within this bill also dictate operational protocols for the Public Bank, including provisions for annual reporting to the governor and the legislature, thus ensuring that public funds are utilized effectively to meet community needs.