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2013 - 2014 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 228
June 5, 2013 - Offered by Representative Sargent.
AB228-ASA1,2,2 1An Act to renumber and amend 13.94 (1) (dr); to amend 1.14 (1) (b), 13.92 (1)
2(b) 1. b., 13.94 (1s) (c) 5., 16.004 (17), 16.52 (6) (a), 16.53 (13) (a), 16.545 (9), 16.70
3(1e), 16.765 (1), 16.765 (2), 16.765 (5), 16.765 (6), 16.765 (7) (intro.), 16.765 (7)
4(d), 16.765 (8), 16.84 (14), 16.847 (2) (a), 16.855 (16) (b) 1., 16.891 (1) (a), 16.967
5(1) (a), 16.97 (1m), 19.42 (10) (sm), 19.42 (13) (om), 20.505 (5) (ke), 20.866 (2)
6(ws), 20.867 (3) (kd), 238.02 (3), 238.02 (4), 238.03 (2) (c), 238.03 (2) (e) and
7250.20 (1) (k); to repeal and recreate 238.02 (1); and to create 13.94 (1) (dr)
81., 13.94 (1) (dr) 2., 238.02 (1d), 238.02 (1f), 238.02 (1g), 238.02 (1r), 238.02 (5),
9238.045, 238.07 (2) (am), 238.07 (2) (dm), 238.07 (2) (fm) and 238.07 (2) (gm) of
10the statutes; relating to: board of directors, powers and duties, including

1reporting requirements, and financial audits of the Wisconsin Economic
2Development Corporation.
Analysis by the Legislative Reference Bureau
This substitute amendment makes a number of changes to the laws governing
the Wisconsin Economic Development Corporation (WEDC), including the following:
1. WEDC administers, develops, and implements economic development
programs that have the purpose of encouraging the establishment and growth of
businesses in this state. Each year, WEDC submits a report by October l to the Joint
Legislative Audit Committee and each house of the legislature that provides
information about the progress of WEDC's economic development programs during
the previous fiscal year. That report must contain a description of each program, a
comparison of expected and actual program outcomes, the number of grants or loans
made under each program, the amount of each grant or loan, the recipient of each
grant or loan, the sum total of all grants and loans awarded by WEDC under an
economic development program, and any recommended changes to each program.
The substitute amendment requires WEDC to include all of the following
additional information in its annual report:
a. Quantifiable performance measures directly related to the purpose of each
economic development program, including an accounting of the location and
industry classification, by municipality, of each job created or retained in the state
in the previous fiscal year as a result of the program.
b. The amount of tax benefits that WEDC allocated, or verified to the
Department of Revenue (DOR), under each program in the previous fiscal year.
c. An identification of each recipient of a tax benefit that WEDC allocated, or
verified to DOR, during the previous fiscal year.
d. The total number of recipients of a grant, loan, or tax benefit that satisfied
certain reporting obligations to WEDC and a list identifying each recipient of a grant,
loan, or tax benefit that failed to satisfy those obligations.
2. Currently, the WEDC board includes six members who are nominated by the
governor and appointed with the advice and consent of the senate and who serve at
the pleasure of the governor; three members appointed by the speaker of the
assembly, consisting of one majority and one minority party representative to the
assembly and one person employed in the private sector; and three members
appointed by the senate majority leader, consisting of one majority and one minority
party senator and one person employed in the private sector.
Under this substitute amendment, the members of the WEDC board nominated
by the governor no longer serve at the pleasure of the governor but serve four-year
terms. The governor must select nominees from a list of candidates prepared by the
WEDC board. In addition, the members of the board appointed by the speaker of the
assembly and senate majority leader who are employed in the private sector no
longer serve at the pleasure of the speaker or majority leader but serve four-year
terms.

3. Under the substitute amendment, the WEDC board must prepare a list of
candidates from which the governor may nominate members of the board. The
WEDC board must include on the list at least two candidates for each position. In
addition, the board must select candidates who have financial management
experience, municipal or regional economic development experience, or private
sector business experience. The board must also ensure that some of the candidates
have expertise in corporate ethics.
4. Currently, the governor serves as chairperson of the WEDC board. Under
the substitute amendment, the WEDC board must elect a chairperson. The board
must also elect one of its members to serve as a lead director for a two-year term.
Under the substitute amendment, the lead director is to provide guidance to the
WEDC board, facilitate communication between the board and the corporation, and
advise the chairperson of the board and the chief executive officer.
5. Currently, the WEDC chief executive officer is nominated by the governor,
and with the advice and consent of the senate appointed, to serve at the pleasure of
the governor. This substitute amendment provides that the board shall appoint the
chief executive officer and may not delegate to any WEDC employee the power to
appoint or terminate the employment of any executive employee of WEDC.
6. The substitute amendment also provides that the WEDC board may not
delegate to any WEDC employee the power or duty to develop or implement any
internal policy without the board first approving the policy.
7. The substitute amendment requires the WEDC board to establish a finance
committee consisting of five board members. The members of the finance committee
must elect a chairperson. Under the substitute amendment, no offers of grants,
loans, or tax credits may be made by WEDC to any business without the approval
of the finance committee.
8. The substitute amendment requires the WEDC board to establish an audit
and compliance committee to audit the programs and finances of WEDC and to
ensure that WEDC is in compliance with applicable state and federal law. The
committee must meet monthly and publish the minutes of its meetings. The
committee must also report at each WEDC board meeting on the current compliance
of WEDC with applicable state and federal law, the status of any contracts with
businesses that are out of compliance with the contract, and what actions have been
planned or taken to resolve the compliance issues.
9. The substitute amendment provides that the chairpersons of all committees
established by the WEDC board must prepare agendas for committee meetings.
10. The substitute amendment provides that if the WEDC board establishes
or incorporates a foundation or other entity to solicit funds for economic development
in this state, the board must publish a list of all donors on an Internet site maintained
by WEDC and must include the list in its annual report to the legislature. Under the
substitute amendment, no person who contributes moneys to the foundation or other
entity may participate in any WEDC economic development program for two years
from the date of the contribution.
11. Under the substitute amendment, the board must also elect one of its public
members to serve as the board's lead director for a two-year term. The lead director

must have significant corporate management experience. Under the substitute
amendment, the lead director is to chair meetings of the board in the chairperson's
absence, chair the governance committee, described below, serve as a liaison between
the chairperson and the other board members, work with the chairperson to ensure
adequate committee structure for any committees the board establishes, and carry
out other duties as assigned by the board or the governance committee.
12. The substitute amendment further requires WEDC's board to establish a
governance committee. In addition to the lead director, who serves as chair of the
governance committee, the governance committee must include two of the board's
public members. The substitute amendment directs the governance committee to
develop principles for the board's oversight of WEDC, oversee the board's operations,
recommend membership for committees the board establishes, assist the
chairperson and the board to identify qualified candidates to fill vacancies on the
board, and facilitate communication between the members of the board and the chief
executive officer of WEDC.
13. Under current law, the Legislative Audit Bureau is required to conduct a
financial audit of WEDC every two years and a program evaluation audit of the
economic development programs administered by WEDC every two years. The
substitute amendment requires that the financial audit be conducted annually until
June 30, 2019, after which point, the financial audit reverts to being conducted every
two years.
14. In addition to other powers specifically enumerated in the statutes, current
law grants WEDC all the powers necessary or convenient to carry out its purposes.
The substitute amendment limits WEDC's power to establish a nonprofit
organization by requiring WEDC to submit any plan to establish a nonprofit
organization to the Joint Committee on Finance under passive review.
15. Under current law, with certain exceptions, the Department of
Administration (DOA) must purchase, or may delegate the authority to purchase, all
necessary materials, supplies, equipment, all other permanent personal property
and miscellaneous capital, and contractual services for all agencies. DOA, or its
delegated agents, may contract for services that can be performed more economically
or efficiently by contract. With exceptions, DOA must award orders and contracts
to the lowest responsible bidders or most competitive proposal. If the estimated cost
of an expenditure exceeds $50,000, DOA must solicit bids or competitive sealed
proposals. This substitute amendment adds WEDC to the definition of agency for
purposes of state procurement so that WEDC is subject to the same laws regulating
agency purchasing.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB228-ASA1,1 1Section 1. 1.14 (1) (b) of the statutes is amended to read:
AB228-ASA1,5,2
11.14 (1) (b) "State agency" has the meaning given for "agency" under s. 16.70
2(1e)
16.97 (1m).
AB228-ASA1,2 3Section 2. 13.92 (1) (b) 1. b. of the statutes is amended to read:
AB228-ASA1,5,54 13.92 (1) (b) 1. b. Any agency, as defined in s. 16.70 (1e) 16.97 (1m), created
5under ch. 13, 14, 15, or 758.
AB228-ASA1,3 6Section 3. 13.94 (1) (dr) of the statutes is renumbered 13.94 (1) (dr) 3. and
7amended to read:
AB228-ASA1,5,118 13.94 (1) (dr) 3. Biennially, beginning in 2013, conduct a financial audit of the
9Wisconsin Economic Development Corporation and
a program evaluation audit of
10the economic development programs administered by the Wisconsin Economic
11Development Corporation under ch. 238.
AB228-ASA1,5,13 124. The legislative audit bureau shall file a copy of each audit report under this
13paragraph with the distributees specified in par. (b).
AB228-ASA1,4 14Section 4. 13.94 (1) (dr) 1. of the statutes is created to read:
AB228-ASA1,5,1615 13.94 (1) (dr) 1. Annually, conduct a financial audit of the Wisconsin Economic
16Development Corporation. This subdivision does not apply after June 30, 2019.
AB228-ASA1,5 17Section 5. 13.94 (1) (dr) 2. of the statutes is created to read:
AB228-ASA1,5,1918 13.94 (1) (dr) 2. Biennially, conduct a financial audit of the Wisconsin Economic
19Development Corporation. This subdivision applies after June 30, 2019.
AB228-ASA1,6 20Section 6. 13.94 (1s) (c) 5. of the statutes is amended to read:
AB228-ASA1,5,2221 13.94 (1s) (c) 5. The Wisconsin Economic Development Corporation for the cost
22of the audit audits required to be performed under sub. (1) (dr).
AB228-ASA1,7 23Section 7. 16.004 (17) of the statutes is amended to read:
AB228-ASA1,6,224 16.004 (17) Business intelligence and data warehousing system. The
25department may implement an enterprise-wide reporting, data warehousing, and

1data analysis system applicable to every agency, as defined in s. 16.70 (1e) 16.97 (1m),
2other than the legislative and judicial branches of state government.
AB228-ASA1,8 3Section 8. 16.52 (6) (a) of the statutes is amended to read:
AB228-ASA1,6,134 16.52 (6) (a) Except as authorized in s. 16.74, all purchase orders, contracts,
5or printing orders for any agency, as defined in s. 16.70 (1e) 16.97 (1m), shall, before
6any liability is incurred thereon, be submitted to the secretary for his or her approval
7as to legality of purpose and sufficiency of appropriated and allotted funds therefor.
8In all cases the date of the contract or order governs the fiscal year to which the
9contract or order is chargeable, unless the secretary determines that the purpose of
10the contract or order is to prevent lapsing of appropriations or to otherwise
11circumvent budgetary intent. Upon such approval, the secretary shall immediately
12encumber all contracts or orders, and indicate the fiscal year to which they are
13chargeable.
AB228-ASA1,9 14Section 9. 16.53 (13) (a) of the statutes is amended to read:
AB228-ASA1,6,1615 16.53 (13) (a) In this subsection, "agency" has the meaning given in s. 16.70 (1e)
1616.97 (1m).
AB228-ASA1,10 17Section 10. 16.545 (9) of the statutes is amended to read:
AB228-ASA1,6,2418 16.545 (9) To initiate contacts with the federal government for the purpose of
19facilitating participation by agencies, as defined in s. 16.70 (1e) 16.97 (1m), in federal
20aid programs, to assist those agencies in applying for such aid, and to facilitate
21influencing the federal government to make policy changes that will be beneficial to
22this state. The department may assess an agency to which it provides services under
23this subsection a fee for the expenses incurred by the department in providing those
24services.
AB228-ASA1,11 25Section 11. 16.70 (1e) of the statutes is amended to read:
AB228-ASA1,7,5
116.70 (1e) "Agency" means an office, department, agency, institution of higher
2education, association, society or other body in state government created or
3authorized to be created by the constitution or any law, which is entitled to expend
4moneys appropriated by law, including the Wisconsin Economic Development
5Corporation, the
legislature, and the courts, but not including an authority.
AB228-ASA1,12 6Section 12. 16.765 (1) of the statutes is amended to read:
AB228-ASA1,7,177 16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and
8Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
9Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
10Fox River Remediation Authority, the Wisconsin Economic Development
11Corporation,
and the Bradley Center Sports and Entertainment Corporation shall
12include in all contracts executed by them a provision obligating the contractor not
13to discriminate against any employee or applicant for employment because of age,
14race, religion, color, handicap, sex, physical condition, developmental disability as
15defined in s. 51.01 (5), sexual orientation as defined in s. 111.32 (13m), or national
16origin and, except with respect to sexual orientation, obligating the contractor to take
17affirmative action to ensure equal employment opportunities.
AB228-ASA1,13 18Section 13. 16.765 (2) of the statutes is amended to read:
AB228-ASA1,8,1119 16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and
20Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
21Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
22Fox River Remediation Authority, the Wisconsin Economic Development
23Corporation,
and the Bradley Center Sports and Entertainment Corporation shall
24include the following provision in every contract executed by them: "In connection
25with the performance of work under this contract, the contractor agrees not to

1discriminate against any employee or applicant for employment because of age, race,
2religion, color, handicap, sex, physical condition, developmental disability as defined
3in s. 51.01 (5), sexual orientation or national origin. This provision shall include, but
4not be limited to, the following: employment, upgrading, demotion or transfer;
5recruitment or recruitment advertising; layoff or termination; rates of pay or other
6forms of compensation; and selection for training, including apprenticeship. Except
7with respect to sexual orientation, the contractor further agrees to take affirmative
8action to ensure equal employment opportunities. The contractor agrees to post in
9conspicuous places, available for employees and applicants for employment, notices
10to be provided by the contracting officer setting forth the provisions of the
11nondiscrimination clause".
AB228-ASA1,14 12Section 14. 16.765 (5) of the statutes is amended to read:
AB228-ASA1,9,413 16.765 (5) The head of each contracting agency and the boards of directors of
14the University of Wisconsin Hospitals and Clinics Authority, the Fox River
15Navigational System Authority, the Wisconsin Aerospace Authority, the Health
16Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation
17Authority, the Wisconsin Economic Development Corporation, and the Bradley
18Center Sports and Entertainment Corporation shall be primarily responsible for
19obtaining compliance by any contractor with the nondiscrimination and affirmative
20action provisions prescribed by this section, according to procedures recommended
21by the department. The department shall make recommendations to the contracting
22agencies and the boards of directors of the University of Wisconsin Hospitals and
23Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
24Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
25Fox River Remediation Authority, the Wisconsin Economic Development

1Corporation,
and the Bradley Center Sports and Entertainment Corporation for
2improving and making more effective the nondiscrimination and affirmative action
3provisions of contracts. The department shall promulgate such rules as may be
4necessary for the performance of its functions under this section.
AB228-ASA1,15 5Section 15. 16.765 (6) of the statutes is amended to read:
AB228-ASA1,9,146 16.765 (6) The department may receive complaints of alleged violations of the
7nondiscrimination provisions of such contracts. The department shall investigate
8and determine whether a violation of this section has occurred. The department may
9delegate this authority to the contracting agency, the University of Wisconsin
10Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
11Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
12the Lower Fox River Remediation Authority, the Wisconsin Economic Development
13Corporation,
or the Bradley Center Sports and Entertainment Corporation for
14processing in accordance with the department's procedures.
AB228-ASA1,16 15Section 16. 16.765 (7) (intro.) of the statutes is amended to read:
AB228-ASA1,9,2416 16.765 (7) (intro.) When a violation of this section has been determined by the
17department, the contracting agency, the University of Wisconsin Hospitals and
18Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
19Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
20Fox River Remediation Authority, the Wisconsin Economic Development
21Corporation,
or the Bradley Center Sports and Entertainment Corporation, the
22contracting agency, the University of Wisconsin Hospitals and Clinics Authority, the
23Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the
24Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation

1Authority, the Wisconsin Economic Development Corporation, or the Bradley Center
2Sports and Entertainment Corporation shall:
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