LRB-5388/1
ALL:ALL:ks
1995 - 1996 LEGISLATURE
February 9, 1996 - Introduced by Senator Adelman. Referred to Committee on
State Government Operations and Corrections.
SB539,2,8 1An Act to repeal 13.93 (2) (g), 15.05 (3), 15.05 (5), 15.06 (4m), 15.06 (9), 16.548,
220.255 (2) (cu), 20.923 (4) (c) 1., 20.923 (6) (ah), 20.923 (9), 25.156 (6) and (7),
325.16 (3), 38.04 (2m), 118.43, 230.08 (2) (m) and 230.08 (2) (y); to amend 13.14
4(3), 13.20 (1), 16.003 (2), 19.42 (10) (L), 19.42 (13) (k), 20.455 (2) (g), 20.765 (3)
5(fa), 20.866 (2) (z) (intro.), 20.923 (6) (h), 20.923 (14), 21.20, 25.156 (2), 25.16 (7),
640.02 (17) (e), 40.02 (30), 40.63 (1) (c), 93.02, 93.42 (1) (e), 119.04 (1), 230.08 (2)
7(f), 230.08 (2) (fs), 230.35 (1m) (a) 2., 230.35 (2), 560.03 (18) and 562.065 (3r);
8to repeal and recreate 20.197 (1) (g) (intro.), 562.065 (3) (e), 562.075 (title)
9and 562.075 (1); to create 13.20 (2m), 20.197 (3) (hm) and 562.075 (2) (cm) of
10the statutes; and to affect 1995 Wisconsin Act 27, section 9145 (13q) and 1995
11Wisconsin Act 60
, section 2 (1m) and (2); relating to: elimination of the
12federal-state relations office; terminating foreign trade offices and limiting
13technology development grants; eliminating bonus compensation for certain
14employes of the investment board; eliminating the student achievement
15guarantee in education program; restoration of breakage revenue from
16racetrack wagering; eliminating funding and construction of the Northern
17Great Lakes Regional Visitor Center; eliminating the position of executive

1assistant in state agencies; a limitation on expenditures by state agencies for
2travel; expenditures from the appropriation for general program operations of
3the office of the governor, the senate and the assembly; decreasing the
4authorized full-time equivalent positions for the office of the lieutenant
5governor; a limitation upon the maximum annual salary payable to certain
6legislative employes; elimination of legislative partisan caucus staffs;
7membership of the Wisconsin legislature in the Council of State Governments;
8granting rule-making authority; and making and decreasing appropriations.
Analysis by the Legislative Reference Bureau
This bill does all of the following:
1. Under current law, the department of administration (DOA) is authorized
to maintain a federal-state relations office in Washington, D.C., for the purpose of
promoting federal-state cooperation. This bill eliminates DOA's authority to
maintain a federal-state relations office in Washington, D.C.
2. Under current law, the department of development (DOD) may establish and
maintain foreign trade offices as part of a plan to promote and increase exports and
foreign investment in the state. This bill removes DOD's authority to establish and
maintain foreign trade offices and requires DOD to terminate all foreign trade offices
currently in existence.
3. Under current law, the general fund appropriation to DOD known as the
Wisconsin development fund provides funding for the technology development grant
and loan program, the research grant and loan program, the customized labor
training grant and loan program, the major economic development projects program,
the employe ownership assistance loan program and the Wisconsin trade project
program. There is no requirement that any specified amount or percentage of the
funds be used for any particular program. This bill reduces the Wisconsin
development fund appropriation by $4,300,000 to decrease funding for grants under
the technology development grant and loan program. Under that program, grants
may be provided to private businesses and consortia consisting of private businesses
and instructions of higher education.
4. Under current law, the investment board is authorized to provide bonus
compensation to the executive director of the board and other unclassified employes
of the board for meritorious performance. The bonuses awarded for any fiscal year
may not exceed a total of 10% of the total annualized salaries of all unclassified
employes of the board and no bonus awarded to any individual employe for any fiscal
year may exceed a total of 25% of the annual salary of the employe at the beginning
of the fiscal year. In awarding bonus compensation for a given period, the board must

consider the performance of funds similar to those for which it has managing
authority and market indices for the same period. In addition, the board is generally
required to provide for a portion of the bonus compensation awarded to be distributed
to an employe over a 3-year period. This bill eliminates the investment board's
bonus compensation program.
5. Under the student achievement guarantee in education program, which was
created in the 1995-97 biennial budget act, in the 1996-97 school year an eligible
school district (one with at least one school with an enrollment of 50% or more
low-income pupils) may enter into a 5-year achievement guarantee contract with
the department of education on behalf of one school in the school district if the school
has an enrollment that is at least 30% low-income pupils and the school district is
not receiving a grant under the preschool to grade 5 program. The contract must
require the school board to reduce class size in the school to 15, keep the school open
until late in the day, collaborate with community organizations, provide a rigorous
academic curriculum and develop a staff development program. In the 1996-97 to
2000-01 school years, a school district that has entered into an achievement
guarantee contract receives additional state aid. The payment in any school year
may not exceed $2,000 per low-income pupil enrolled in grades eligible for funding
in the participating school. This bill eliminates the student achievement guarantee
in education program.
6. Prior to the enactment of the 1995-97 biennial budget act, a racetrack
licensee was required to round down pari-mutuel payouts to the nearest 10 cents.
This rounding down may have resulted in surplus funds in the wagering pool and
was called the "breakage". Before the enactment of the 1995-97 biennial budget act,
a racetrack licensee was required to pay 50% of the breakage to the state. The
1995-97 biennial budget act provided that the racetrack licensee may retain 100%
of the breakage. This bill, beginning on July 1, 1996, restores the breakage provision
in effect before the enactment of the 1995-97 biennial budget act, with the result that
a racetrack licensee is required to pay 50% of the breakage to the state.
7. 1995 Wisconsin Act 60 amends the 1995-97 state building program to
authorize the Northern Great Lakes Regional Visitor Center project, to be funded
with $3,500,000 in general fund supported borrowing and $3,500,000 in federal
funds. The act authorizes the building commission to make up to $3,500,000 in
payments to the federal government for the construction of the project, except that
the amount paid by the state may not exceed the amount provided for the project by
the federal government. The act also directs the building commission to include in
its proposed 1997-99 state building program an additional $600,000 in general fund
supported borrowing and $600,000 in federal funds to be used for the project. This
bill deletes the project from the 1995-97 state building program; decreases the
amount of bonding authority by $3,500,000; repeals the authority of the building
commission to make payments to the federal government for the project; and repeals
the requirement that the building commission include additional moneys for the
project in its proposed 1997-99 state building program.
8. Under current law, each secretary of a state department, the attorney
general, the adjutant general, the director of the technical college system, the state

superintendent of public instruction and certain commission chairpersons are
authorized to appoint an executive assistant who serves at the pleasure of, and
performs duties prescribed by, the applicable appointing authority. This bill
eliminates the position of executive assistant.
9.Currently, there is no statutory limitation upon travel expenditures by state
agencies. The secretary of administration may require state agencies to submit
expenditure estimates for his or her approval before making such expenditures and
the secretary is directed or permitted to withhold approval of the estimates under
certain conditions. The form in which state agencies submit proposed budgets is
determined by the secretary. The secretary then compiles the information and
submits it to the governor and legislature.
This bill prohibits any state agency from making total expenditures from any
revenue source except federal revenue in the 1996-97 fiscal year for travel expenses
incurred by its officers or employes exceeding 90% of the total amount expended by
the agency from that revenue source for that purpose in the 1994-95 fiscal year.
The bill also requires the secretary of administration to lapse to the general
fund from each sum certain appropriation made to each state agency from each
revenue source except program revenue, segregated revenue derived from program
receipts and federal revenue for the 1996-97 fiscal year an amount equivalent to 10%
of the amount expended by the agency from that appropriation for travel expenses
incurred by its officers and employes in the 1994-95 fiscal year. The bill decreases
each sum certain appropriation made to each state agency from program revenue or
segregated revenue derived from program receipts for the 1996-97 fiscal year by the
same amounts. Similarly, the bill requires the secretary to reestimate the
expenditure estimate for each sum sufficient appropriation made to each state
agency from each revenue source except federal revenue for the 1996-97 fiscal year
to subtract the same amount.
In addition, the bill directs the secretary to exclude from budgets submitted by
state agencies and from the budget compilation submitted to the governor and the
legislature for the 1997-99 fiscal biennium, for each sum certain appropriation made
to a state agency from general purpose revenue, an amount equivalent to any amount
lapsed from that appropriation account under the bill.
The bill does not apply to any appropriation made to the department of revenue.
10. This bill directs DOA, in submitting the appropriations schedule to the joint
committee on Finance (JCF) following the final adjournment of the 1995-96
legislature, to change the estimated expenditures that will be made by the office of
the governor for general program operations in fiscal year 1996-97 to reflect an
estimated decrease of $216,800; to change the estimated expenditures that will be
made by the senate for general program operations in fiscal year 1996-97 to reflect
an estimated decrease of $1,695,200; and to change the estimated expenditures that
will be made by the assembly for general program operations in fiscal year 1996-97
to reflect an estimated decrease of $2,014,500.
11. This bill reduces the authorized full-time equivalent positions for the office
of the lieutenant governor by 4.0 full-time equivalent positions and eliminates
funding of those positions, effective on July 1, 1996.

12. Currently, the salaries of employes of the assembly and senate are set by
the appointing authority (the chief clerks of the houses) in accordance with the state
compensation plan for employes in the classified civil service, within ranges
approved by the joint committee on legislative organization (JCLO), or, at JCLO's
option, by the organization committee of either house. This bill limits the base salary
that may be paid to any employe of the senate or assembly, other than a member or
officer, to $37,056 per year.
13. Currently, JCLO or either house of the legislature may employ such number
of research staff assigned to legislative party caucuses as in the judgment of JCLO
or the committee on organization of either house are necessary to enable it to perform
its functions and duties and to best serve the people of this state. This bill deletes
this authority and deauthorizes all positions that are currently assigned to
legislative party caucuses beginning on July 1, 1996.
14. Currently, there is appropriated a sum sufficient to JCLO for the purpose
of maintaining memberships for this state in national organizations, including
specifically the Council of State Governments. This bill deletes authorization for
JCLO to use any of the moneys appropriated under this appropriation to maintain
a membership for the Wisconsin legislature in the Council of State Governments.
For further information see the state and local 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:
SB539, s. 1 1Section 1. 13.14 (3) of the statutes is amended to read:
SB539,5,62 13.14 (3) Travel; legislative personnel. The actual and necessary expenses
3of legislative policy research personnel, assistants to legislators and research staff
4assigned to legislative committees and party caucuses incident to attending
5meetings outside the capital shall be reimbursed from the appropriation under s.
620.765 (1) (a) or (b).
SB539, s. 2 7Section 2. 13.20 (1) of the statutes is amended to read:
SB539,6,38 13.20 (1) Number and pay range of legislative employes. The legislature or
9either house thereof may employ under the unclassified service such policy research
10personnel, assistants to legislators, research staff assigned to legislative committees
11and party caucuses and such clerical, professional or other assistants as in the

1judgment of the joint committee on legislative organization or the committee on
2organization in each house are necessary to enable it to perform its functions and
3duties and to best serve the people of this state.
SB539, s. 3 4Section 3. 13.20 (2m) of the statutes is created to read:
SB539,6,85 13.20 (2m) Limitation on maximum annual salaries. Notwithstanding sub. (2)
6and ss. 20.923 (6) (h), 230.10 and 230.12, no legislative employe whose salary is paid
7from the appropriation under section 20.765 (1) (a) or (b), other than a member or
8officer, may receive a base salary exceeding $37,056 per year.
SB539, s. 4 9Section 4. 13.93 (2) (g) of the statutes is repealed.
SB539, s. 5 10Section 5. 15.05 (3) of the statutes is repealed.
SB539, s. 6 11Section 6. 15.05 (5) of the statutes is repealed.
SB539, s. 7 12Section 7. 15.06 (4m) of the statutes is repealed.
SB539, s. 8 13Section 8. 15.06 (9) of the statutes is repealed.
SB539, s. 9 14Section 9. 16.003 (2) of the statutes is amended to read:
SB539,6,1815 16.003 (2) Staff. Except as provided in ss. 16.548, 16.57, 978.03 (1), (1m) and
16(2), 978.04 and 978.05 (8) (b), the secretary shall appoint the staff necessary for
17performing the duties of the department. All staff shall be appointed under the
18classified service except as otherwise provided by law.
SB539, s. 10 19Section 10. 16.548 of the statutes is repealed.
SB539, s. 11 20Section 11. 19.42 (10) (L) of the statutes is amended to read:
SB539,6,2221 19.42 (10) (L) The executive director, executive assistant to the executive
22director
and investment directors of the investment board.
SB539, s. 12 23Section 12. 19.42 (13) (k) of the statutes is amended to read:
SB539,6,2524 19.42 (13) (k) The executive director, executive assistant to the executive
25director
and investment directors of the investment board.
SB539, s. 13
1Section 13. 20.005 (3) (schedule) of the statutes: at the appropriate place,
2insert the following amounts for the purposes indicated: - See PDF for table PDF
SB539, s. 14 3Section 14. 20.197 (1) (g) (intro.) of the statutes, as affected by 1995 Wisconsin
4Act 27
, section 543m, is repealed and recreated to read:
SB539,7,135 20.197 (1) (g) General program operations; racing. (intro.) The amounts in the
6schedule for general program operations under ch. 562. All moneys received by the
7gaming board under ss. 562.02 (2) (f), 562.04 (1) (b) 4. and (2) (d), 562.05 (2), 562.065
8(3) (d) and (e) 2. and (4) and 562.09 (2) (e), less the amounts appropriated under s.
920.455 (2) (g), shall be credited to this appropriation account. The unencumbered
10balance in this appropriation on June 30 of each fiscal year which exceeds 10% of that
11fiscal year's expenditures under this appropriation, but not more than the total
12amount received during that fiscal year under s. 562.065 (3) (d) and (e) 2. and (4),
13shall be transferred as follows:
SB539, s. 15 14Section 15. 20.197 (3) (hm) of the statutes is created to read:
SB539,7,1815 20.197 (3) (hm) Purse supplements. All moneys received under s. 562.065 (3)
16(e) 1., for purse supplements under s. 562.075 (1) (b) and (2) (cm). The gaming board
17shall determine, by rule, how much of the moneys under this appropriation shall be
18allocated for each of the purse supplements under s. 562.075 (1) (b) and (2) (cm).
SB539, s. 16
1Section 16. 20.255 (2) (cu) of the statutes, as created by 1995 Wisconsin Act
227
, is repealed.
SB539, s. 17 3Section 17. 20.455 (2) (g) of the statutes, as affected by 1995 Wisconsin Act 27,
4is amended to read:
SB539,8,95 20.455 (2) (g) Gaming law enforcement; racing revenues. From all moneys
6received under ss. 562.02 (2) (f), 562.04 (1) (b) 4. and (2) (d), 562.05 (2), 562.065 (3)
7(d) and (e) 2. and (4) and 562.09 (2) (e), the amounts in the schedule for the
8performance of the department's gaming law enforcement responsibilities as
9specified in s. 165.70 (3m).
SB539, s. 18 10Section 18. 20.765 (3) (fa) of the statutes is amended to read:
SB539,8,1711 20.765 (3) (fa) Membership in national associations. A sum sufficient to be
12disbursed under s. 13.90 (4) for payment of the annual fees entitling the legislature
13to membership in national organizations including, without limitation because of
14enumeration, the national conference of state legislatures, the council of state
15governments
and the national committee on uniform traffic laws and ordinances. No
16moneys may be encumbered from this appropriation to maintain a membership in
17the council of state governments.
SB539, s. 19 18Section 19. 20.866 (2) (z) (intro.) of the statutes, as affected by 1995 Wisconsin
19Act 60
, is amended to read:
SB539,9,220 20.866 (2) (z) Building commission; other public purposes. (intro.) From the
21capital improvement fund, a sum sufficient to the building commission for relocation
22assistance and capital improvements for other public purposes authorized by law but
23not otherwise specified in this chapter. The state may contract public debt in an
24amount not to exceed $736,956,000 $733,456,000 for this purpose. Of this amount,
25$150,000,000 is allocated for the Wisconsin initiative for state technology and

1applied research program. The total amount of debt authorized for this program may
2not exceed the following amounts on the following dates:
SB539, s. 20 3Section 20. 20.923 (4) (c) 1. of the statutes is repealed.
SB539, s. 21 4Section 21. 20.923 (6) (ah) of the statutes is repealed.
SB539, s. 22 5Section 22. 20.923 (6) (h) of the statutes is amended to read:
SB539,9,86 20.923 (6) (h) Legislature: policy research personnel, assistants to legislators,
7research staff assigned to legislative committees and party caucuses and other
8persons employed under s. 13.20.
SB539, s. 23 9Section 23. 20.923 (9) of the statutes is repealed.
SB539, s. 24 10Section 24. 20.923 (14) of the statutes is amended to read:
SB539,9,1511 20.923 (14) Salary administration. Except as provided in s. 36.09 (1) (j), any
12adjustment of salary for any incumbent in a position specified in subs. (4), (4m), (8),
13(9)
and (12) is governed by the provisions of the compensation plan concerning
14executive salary groups as adopted by the joint committee on employment relations
15under s. 230.12 (3) (b).
SB539, s. 25 16Section 25. 21.20 of the statutes is amended to read:
SB539,9,21 1721.20 Civil service status. All full-time state-paid employes of the
18department of military affairs shall be under the classified service, except the
19adjutant general, the executive assistant to the adjutant general, the deputy
20adjutants general for army and air and the administrator of the division of
21emergency government.
SB539, s. 26 22Section 26. 25.156 (2) of the statutes is amended to read:
SB539,9,2523 25.156 (2) The investment board shall employ an executive director, who shall
24serve outside the classified service. The executive director shall be qualified by
25training and prior experience to manage, administer and direct the investment of

1funds. The investment board shall fix the compensation of the executive director,
2and may award bonus compensation as authorized under sub. (6)
.
SB539, s. 27 3Section 27. 25.156 (6) and (7) of the statutes are repealed.
SB539, s. 28 4Section 28. 25.16 (3) of the statutes is repealed.
SB539, s. 29 5Section 29. 25.16 (7) of the statutes is amended to read:
SB539,10,116 25.16 (7) The executive director shall fix the compensation of all employes
7appointed by the executive director, subject to restrictions set forth in the
8compensation plan under s. 230.12 or any applicable collective bargaining
9agreement in the case of employes in the classified service, but the investment board
10may provide for bonus compensation to employes in the unclassified service as
11authorized under s. 25.156 (6)
.
SB539, s. 30 12Section 30. 38.04 (2m) of the statutes is repealed.
SB539, s. 31 13Section 31. 40.02 (17) (e) of the statutes is amended to read:
SB539,11,214 40.02 (17) (e) Each executive participating employe whose creditable service
15terminates on or after May 3, 1988, and each participating employe who is a present
16or former elected official or an appointee of a present or former elected official and
17who did not receive creditable service under s. 40.02 (17) (e), 1987 stats., or s. 40.02
18(17) (e), 1989 stats., and whose creditable service terminates on or after August 15,
191991, who was previously in the position of the president of the university of
20Wisconsin system or in a position designated under s. 20.923 (4), or (8) or (9), but did
21not receive creditable service because of age restrictions, may receive creditable
22service equal to the period of executive service not credited if the participant pays to
23the department a lump sum payment equal to 5.5% of one-twelfth of the employe's
24highest earnings in a single annual earnings period multiplied by the number of
25months of creditable service granted under this paragraph. That amount shall be

1credited and treated as an employe required contribution for all purposes of the
2Wisconsin retirement system.
SB539, s. 32 3Section 32. 40.02 (30) of the statutes is amended to read:
SB539,11,104 40.02 (30) "Executive participating employe" means a participating employe
5in a position designated under s. 19.42 (10) (L) or 20.923 (4), (4m) , or (8) or (9) or
6authorized under s. 230.08 (2) (e) during the time of employment. All service credited
7prior to May 17, 1988, as executive service as defined under s. 40.02 (31), 1985 stats.,
8shall continue to be treated as executive service as defined under s. 40.02 (31), 1985
9stats., but no other service rendered prior to May 17, 1988, may be changed to
10executive service as defined under s. 40.02 (31), 1985 stats.
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