LRB-3484/1
CTS:kjf:md
2009 - 2010 LEGISLATURE
October 29, 2009 - Introduced by Representatives Barca, Jorgensen, Fields,
Seidel, Staskunas, Hraychuck, Zigmunt, Soletski, Sinicki, Young, Roys,
Clark, Vruwink, Turner, Steinbrink, Garthwaite and Hixson, cosponsored
by Senators Holperin, Wirch and Taylor. Referred to Committee on Jobs, the
Economy and Small Business.
AB532,1,5
1An Act to amend 20.143 (1) (c); and
to create 560.047 of the statutes;
relating
2to: directing the Department of Commerce to award grants to community
3development corporations to establish capital access programs, providing an
4exemption from emergency rule procedures, requiring the exercise of
5rule-making authority, and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill directs the Department of Commerce (department) to award grants to
Wisconsin Business Development Finance Corporation (corporation) for the purpose
of funding capital access programs to encourage lending to small and medium-sized
businesses and to local nonprofit agencies. The corporation may distribute grant
proceeds only to recipients with an existing portfolio of revolving loans to small
businesses and whose primary purpose and mission is the promotion of community
development in a limited geographic area of this state that is experiencing economic
distress.
Recipients of grant proceeds from the corporation must use the grant proceeds
to establish reserve pools to reduce risk to lenders. Under the bill, the corporation
must require each recipient of grant proceeds to obtain funding from sources other
than the state to match the amount of the grant proceeds received.
The bill limits the total amount of grants awarded in a fiscal year to $350,000,
and increases an appropriation of general purpose revenue to the department by
$350,000 for fiscal year 2010-11.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB532,2,123
20.143
(1) (c)
Wisconsin development fund; grants, loans, reimbursements, and
4assistance. Biennially, the amounts in the schedule for grants under
s. ss. 560.145
5and 560.047; for grants and loans under s. 560.275 (2) and subch. V of ch. 560; for
6reimbursements under s. 560.167; for the costs specified in s. 560.607; for the loan
7under
1999 Wisconsin Act 9, section
9110 (4); and for the grants under
1995
8Wisconsin Act 27, section
9116 (7gg),
1995 Wisconsin Act 119, section
2 (1),
1997
9Wisconsin Act 27, section
9110 (6g),
2003 Wisconsin Act 33, section
9109 (1d) and
10(2q),
2007 Wisconsin Act 20, section
9108 (4u), (6c), (7c), (7f), (8c), (8i), (9i), and (10q),
112009 Wisconsin Act 2, section
9110 (2) and (3), and
2009 Wisconsin Act 28, section
129110 (17q).
AB532, s. 2
13Section
2. 560.047 of the statutes is created to read:
AB532,2,19
14560.047 Capital access program grants.
(1) From the appropriation under
15s. 20.143 (1) (c), the department shall award grants to Wisconsin Business
16Development Finance Corporation for the purpose of funding capital access
17programs to encourage lending to small and medium-sized businesses and to local
18nonprofit agencies. Wisconsin Business Development Finance Corporation may
19distribute grant proceeds to a recipient if all of the following apply:
AB532,3,3
1(a) The recipient has as its primary purpose and mission the promotion of
2community development primarily in a limited geographic area of this state that is
3experiencing economic distress.
AB532,3,54
(b) The recipient has an existing portfolio of revolving loans to small
5businesses.
AB532,3,12
6(2) Wisconsin Business Development Finance Corporation shall require each
7recipient of grant proceeds to obtain funding from sources other than the state to
8match the amount of the grant proceeds received from the corporation. Recipients
9of grant proceeds shall use the grant proceeds, in conjunction with premiums paid
10by eligible borrowers and eligible lenders, to establish reserve pools to reduce risk
11to lenders for loans to small and medium-sized businesses and to local nonprofit
12agencies.
AB532,3,19
13(3) The total amount of grants awarded under this section in a fiscal year may
14not exceed $350,000. The department shall enter into an agreement with Wisconsin
15Business Development Finance Corporation that specifies the uses for the grant
16proceeds and reporting and auditing requirements and shall promulgate rules
17necessary to administer this section, including rules that establish eligibility criteria
18for lenders and borrowers who wish to participate in a capital access program funded
19by grant proceeds.
AB532,3,2421
(1) The department of commerce shall submit in proposed form the rules
22required under section 560.047 (3) of the statutes, as created by this act, to the
23legislative council staff under section 227.15 (1) of the statutes no later than the first
24day of the 6th month beginning after the effective date of this subsection.
AB532,4,13
1(2) Using the emergency rules procedure under section 227.24 of the statutes,
2the department of commerce shall promulgate the rules required under section
3560.047 (3) of the statutes, as created by this act, for the period before the effective
4date of the rules submitted under subsection (1
). The department shall promulgate
5these emergency rules no later than the first day of the 6th month beginning after
6the effective date of this subsection. Notwithstanding section 227.24 (1) (c) and (2)
7of the statutes, these emergency rules may remain in effect until July 1, 2011, or the
8date on which permanent rules take effect, whichever is sooner. Notwithstanding
9section 227.24 (1) (a) and (3) of the statutes, the department is not required to provide
10evidence that promulgating a rule under this subsection as an emergency rule is
11necessary for the preservation of the public peace, health, safety, or welfare and is
12not required to provide a finding of emergency for a rule promulgated under this
13subsection.
AB532,4,1915
(1)
In the schedule under section 20.005 (3) of the statutes for the appropriation
16to the department of commerce under section 20.143 (1) (c) of the statutes, as affected
17by the acts of 2009, the dollar amount is increased by $350,000 for the second fiscal
18year of the fiscal biennium in which this subsection takes effect to provide funding
19for grants under section 560.047 of the statutes, as created by this act.
