Amendment SSA1-SB777

CORRECTED COPY

LRBs0363/1

MES/JK/KP:all

2017 - 2018 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 1, TO SENATE BILL 777

February 20, 2018 - Offered by Senators Wanggaard and L. Taylor.

SB777-SSA1,2,2 An Act to repeal 59.17 (2) (bm), 59.42 (1) (b) and (c), 59.52 (31) and 59.79 (8); to renumber and amend 59.42 (1) (a) and 59.60 (12); to amend 46.21 (1m) (a), 46.21 (1m) (am), 48.09 (5), 59.06 (2), 59.17 (2) (b) 1., 59.17 (2) (b) 3. (intro.), 59.17 (2) (b) 4., 59.17 (2) (c), 59.17 (4), 59.22 (2) (a), 59.22 (2) (c) 1. (intro.), 59.22 (2) (c) 2., 59.22 (2) (d), 59.22 (2) (e), 59.22 (3), 59.22 (3a), 59.255 (2) (e), 59.38 (5), 59.42 (2) (a), 59.42 (2) (b) 5., 59.42 (3), 59.44 (1) (b), 59.52 (1) (a), 59.52 (1) (b), 59.52 (9), 59.52 (29) (a), 59.53 (25), 59.58 (1) (c), 59.60 (1), 63.02 (2), 68.14 (1), 83.01 (1) (b) and 289.33 (3) (d); and to create 59.17 (2) (b) 8., 59.17 (2) (d), 59.17 (2) (e), 59.22 (2) (cm), 59.52 (3m), 59.52 (29) (am), 59.60 (12) (b), 59.60 (12) (c), 59.602 and 59.61 (4) of the statutes; relating to: increasing the authority of a county executive from a populous county and other counties and reducing the authority of a county board, and budgeting procedures for populous counties and certain other counties.

Analysis by the Legislative Reference Bureau

Powers and duties of a county executive

This substitute amendment, generally, expands some of the powers that may be exercised by the county executive of any county with a population of 750,000 or more (populous county) and makes other changes that apply to all counties. The substitute amendment also allows a county executive of a populous county to exercise some of the authority that would otherwise be exercised by the county board for matters regarding property. Such authority includes providing public liability and property damage insurance, providing fire and casualty insurance for county property, examining and settling all accounts of the county and all claims, and purchasing publications.

Current law allows a county executive of a populous county to hire and supervise the number of employees that the county executive reasonably believes are necessary for him or her to carry out the duties of the county executive's office. With regard to employees outside the classified service, the substitute amendment also gives the county executive of a populous county sole authority to determine the compensation, human resources, hiring, creation and elimination of positions, pay ranges, expense reimbursements, and classifications for county employees.

Under current law, the county executive of any county has the authority to coordinate and direct all administrative and management functions of the county that are not vested in other elected officers. This substitute amendment specifies that, with regard to a county executive of a populous county, the executive has sole authority over administrative actions with regard to procurement, including an appeals process, contracting, administrative review of appeals regarding the denial of certain applications, and the actions taken under the administrative manual of operating procedures related to the authority and powers of a county executive. Under the substitute amendment, any such action taken by a county executive of a populous county is not subject to submission to or approval by the county board.

Corporation counsel, appointees

Current law requires the creation of the office of corporation counsel for any county with a population of 500,000 or more. Under current law, a corporation counsel is appointed by the county executive with the concurrence of a majority of the county board. A counsel may be dismissed at any time by the county executive with the concurrence of the board or may be dismissed at any time by a majority vote of the board. The substitute amendment requires the creation of the office of corporation counsel for any county with a county executive or county administrator. Under the substitute amendment, a corporation counsel is appointed by the executive or administrator with the concurrence of a majority of the county board, unless the board enacts an ordinance that waives the board's confirmation. The substitute amendment provides that the corporation counsel is under the supervision of the county executive or county administrator and may be dismissed by the executive or administrator with the board's concurrence.

Generally, the substitute amendment changes the method of board confirmation of county executive appointees in a populous county. Under the substitute amendment, an appointee confirmed by the board for a particular position does not need to be reconfirmed to continue in that position, and interim appointees do not require board confirmation. The substitute amendment also changes the current law provision requiring the comptroller to countersign all county contracts. Under the substitute amendment, the requirement applies only to contracts valued at more than $250,000.

Public contracts, bonding

Generally under current law, a county must let a public contract having an estimated cost of more than $25,000 to the lowest responsible bidder. Under this substitute amendment, the amount above which a populous county must let a contract to the lowest responsible bidder is raised to $50,000.

The substitute amendment creates a requirement that any county with an elective comptroller must create an Internet site, which may be part of the county's website, on which it posts a list of certain contracts to which the county is a party if the contract relates to the purchase of goods or services, or the lease, sale, or purchase of real property. This provision first applies approximately six months after the substitute amendment takes effect.

Biennial budget procedures

This substitute amendment also authorizes a populous county, currently only Milwaukee County, as well as any other county to adopt and use a biennial budgetary procedure.

Current law specifies an annual budgetary procedure applicable to counties with a population of 500,000 or more and certain counties that elect to follow the procedure. No later than July 15, each department of the county submits to the director of the county department of administration the respective department's estimated revenues and expenditures for the coming fiscal year, the estimated cost of any capital improvements pending or proposed for the coming fiscal year and for the next four fiscal years, and any other information that the director requests. No later than August 15, the director submits to the county executive or county administrator and to the county board all of the following: 1) the annual budget estimates of each department; 2) a statement of principal and interest becoming due on outstanding bonds and on other financial obligations; 3) an estimate of all other expenditures; 4) an estimate of anticipated issues of new bond obligations; 5) an estimate of funds required for contingencies; 6) an estimate of revenue from all other sources; and 7) a complete summary of all the budget estimates and a statement of the property tax levy required if funds were appropriated on the basis of these estimates.

After receiving the estimates, the county executive or county administrator reviews the estimates and holds public hearings. The county executive or county administrator then makes changes in the proposed budget and, no later than October 1, submits the amended proposed budget to the county board. The amended proposed budget of the county executive or administrator must include all of the following: 1) a simple, clear, general summary of the detailed contents of the budget; 2) a comparative statement by organization unit and principal object of expenditure showing the actual expenditures of the preceding fiscal year, the appropriations and estimated expenditures for the fiscal year currently ending, and the recommended appropriations for the fiscal year next succeeding; and 3) a comparative statement of the actual revenues from all sources, including property taxes, during the preceding fiscal year; the anticipated revenues and the estimated revenues for the fiscal year currently ending; and the anticipated revenues for the next succeeding fiscal year.

After receiving the amended proposed budget, the county board refers the budget to the finance committee and the finance committee holds a public hearing on the budget. After the public hearing, the finance committee submits to the county board its recommendations for amendments to the proposed amended budget. Finally, the county board adopts the budget with any changes it considers proper and advisable.

Generally under this substitute amendment, for fiscal years that begin after December 31, 2017, any county may adopt a biennial budget using the following timeline:

1. All departments submit their budget requests to the director.

2. No later than October 1 of an odd-numbered year, the county executive, county administrator, or, in counties without an executive or administrator, the county's finance committee submits his or her or its proposed budget to the county board.

3. No later than November 15 of an odd-numbered year, the county board of a county with a county executive approves the budget, engrossed with any amendments, and returns it to the county executive. In any county, any amendment to the budget must be submitted to the comptroller or budget director at least seven business days before it may be considered by a county board or by a committee of the county board. A county with an elective comptroller must include an estimate, prepared by the comptroller, of the costs that will be incurred, and the staffing changes that will be required, to implement the amendment during the next five fiscal years.

4. No later than November 25 of an odd-numbered year, the county executive may submit vetoes or changes to the county board. The county board may act on the vetoes or changes no earlier than upon receiving them or November 26, whichever occurs first, although the county board or common council must act on the changes or vetoes no later than December 1 of an odd-numbered year or the vetoes or changes are considered to be approved by the governing body.

5. Outside the budget process, a county executive, a county administrator, or, in a county without a county executive or administrator, the finance committee may propose to the political subdivision's governing body an increase or decrease in any appropriation or revenue amount subject to the same budget amendment procedures described in item 3, above. A two-thirds majority vote of the governing body is required to approve such a proposal, which may not be amended, except that if such a proposal is made and voted on between October 1 and November 15 of an even-numbered year, it may be approved by a simple majority and may be amended on a limited basis.

This substitute amendment also provides certain restrictions on the county board's actions related to the budget, including the following:

1. The budget must include all of the following items, and may include no others: a) the county tax levy; b) anticipated revenue amounts from all sources; and c) appropriations for all departments, and for any other obligations of the county. The board may adjust the levy for the second year of a budget once the board receives the relevant information from the Department of Revenue.

2. A political subdivision's authority to transfer unencumbered appropriation balances is subject to certain limitations.

3. With regard to a populous county, and subject to some exceptions, the county board may not adopt a budget in which the total amount of budgeted expenditures related to the compensation of county board members, and to any other costs that are directly related to the operation and functioning of the county board or committees, including staff, is greater than 0.4 percent of the county portion of the tax levy for that year to which the budget applies. Some of the exceptions to this 0.4 percent cap include health care and pension benefits for retired county employees and officers, and salaries and benefits for any board member whose term begins before April 2018.

Accounting procedures

This substitute amendment also requires populous counties to utilize fund accounting and authorizes any county to create proprietary funds, fiduciary funds, and other appropriate funds allowed by government accounting practice, provided that the county describes the sources of revenues that may be deposited into each fund and the types of expenditures that may be made from each fund. In counties without a county executive, such funds may be created by the county board. In counties with a county executive, such funds may be created only by executive order of the county executive. Counties that create proprietary, fiduciary, or other funds must develop policies and procedures that apply to each such fund, including setting a working cash flow target for each fund, publishing annual estimates of working cash flow balances, and descriptions of possible uses of balances in a fund that accumulate above the cash flow target.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB777-SSA1,1 Section 1 . 46.21 (1m) (a) of the statutes is amended to read:

SB777-SSA1,6,8 46.21 (1m) (a) The county executive shall appoint under ss. 63.01 to 63.17 a director of the county department of human services. The appointment shall be made on the basis of recognized and demonstrated public interest in and knowledge of the problems of human services, and with due regard to training, experience, executive and administrative ability and efficiency, and general qualifications and fitness for performing the duties of the office. The director shall file an official oath and bond in the amount determined by the county board of supervisors. The county board of supervisors may create a position of deputy director of the county department of human services. The director shall be appointed by the county executive in the unclassified civil service and is subject to confirmation by the county board of supervisors under s. 59.17 (2) (bm).

SB777-SSA1,2 Section 2 . 46.21 (1m) (am) of the statutes is amended to read:

SB777-SSA1,6,20 46.21 (1m) (am) The county executive shall appoint under ss. 63.01 to 63.17 an administrator of the county hospital. The appointment shall be made on the basis of recognized and demonstrated public interest in and knowledge of the problems of delivery of medical care and treatment, and with due regard to training, experience, executive and administrative ability and efficiency, and general qualifications and fitness for performing the duties of the office. The administrator shall file an official oath and bond in the amount determined by the county board of supervisors. The county board of supervisors may create positions to assist the administrator. The administrator shall be appointed by the county executive in the unclassified civil service and the appointment is subject to confirmation by the county board of supervisors under s. 59.17 (2) (bm).

SB777-SSA1,3 Section 3 . 48.09 (5) of the statutes is amended to read:

SB777-SSA1,7,3 48.09 (5) By the district attorney or, if designated by the county board of supervisors or the county executive, by the corporation counsel, in any matter arising under s. 48.13, 48.133 or 48.977. If the county board or county executive transfers this authority to or from the district attorney on or after May 11, 1990, the board or executive may do so only if the action is effective on September 1 of an odd-numbered year and the board or executive notifies the department of administration of that change by January 1 of that odd-numbered year.

SB777-SSA1,4 Section 4 . 59.06 (2) of the statutes is amended to read:

SB777-SSA1,7,11 59.06 (2) Effect of transfer. All deeds, contracts, and agreements made on behalf of the county under the directions of the board under s. 59.52 (6), or by a county executive acting under s. 59.17 (2) (b) 3., when signed and acknowledged by the clerk and the county seal is attached, are valid and binding on the county to the extent of the terms of the instrument and the right, title, and interest which the county has in the property, except that in the case of the sale or purchase of real property, the instrument must also be signed by the clerk to be valid and binding on the county.

SB777-SSA1,5 Section 5 . 59.17 (2) (b) 1. of the statutes is amended to read:

SB777-SSA1,8,16 59.17 (2) (b) 1. Appoint and supervise the heads of all departments except where the statutes provide that the appointment shall be made by a board or commission or by other elected officers. Notwithstanding any statutory provision that a board or commission or the county board or county board chairperson appoint a department head, except ss. 17.21 and 59.47 (3), the county executive shall appoint and supervise the department head. Except for a statutory provision which specifies that a board or commission or the county board shall supervise the administration of a department, the county executive shall administer, supervise, and direct all county departments, including any person who negotiates on behalf of the county, and the county board, other board, or commission shall perform any advisory or policy-making function authorized by statute. Any appointment by the county executive under this subdivision requires the confirmation of the county board unless the county board, by ordinance, elects to waive confirmation. Any appointee who is confirmed by the board for a particular position does not need to be reconfirmed for that position for as long as he or she continues in uninterrupted service in that position. Any appointee who is appointed as an interim department head does not need county board confirmation. Any department head appointee of a county executive who has been confirmed by a county board, or whose confirmation has been waived by the board, on or before the effective date of this subdivision .... [LRB inserts date], does not need to be reconfirmed, or confirmed, by the board as long as the appointee continues in uninterrupted service in that position. In this subdivision, uninterrupted service includes a gap in service for an allowable leave of absence, such as medical leave. An appointee of the county executive may assume his or her duties immediately, pending board action which shall take place within 60 days after the county executive submits the appointment to the board for confirmation. Any department head appointed by a county executive under this subsection may be removed at the pleasure of the county executive. The county executive shall comply with hiring policies set by the board when making appointments under this paragraph.

SB777-SSA1,6 Section 6 . 59.17 (2) (b) 3. (intro.) of the statutes is amended to read:

SB777-SSA1,9,8 59.17 (2) (b) 3. (intro.) Exercise the authority under s. 59.52 (6) that would otherwise be exercised by a county board, except that the county board may continue to exercise the authority under s. 59.52 (6) only with regard to the sale, acquisition, or lease as landlord or tenant of land that is zoned as a park on or after July 14, 2015, other than land zoned as a park in the city of Milwaukee that is located within the area west of Lincoln Memorial Drive, south of E. Michigan Street, east of N. Van Buren Street, and north of E. Clybourn Avenue. With regard to the sale, acquisition, or lease as landlord or tenant of real property, other than certain park land as described in this subdivision, the county executive's action need not be consistent with established county board policy and may take effect without submission to or approval by the county board. The proceeds of the sale of real property as authorized under this subdivision shall first be applied to any debt attached to the property. Before the county executive's sale of county land may take effect, a majority of the following must sign a document, a copy of which will be attached to the bill of sale and a copy of which will be retained by the county, certifying that they believe the sale is in the best interests of the county:

SB777-SSA1,7 Section 7 . 59.17 (2) (b) 4. of the statutes is amended to read: