SECTION 78. 16.54 (2) (a) 2. of the statutes is amended to read:

16.54 (2) (a) 2. Whenever a block grant is made to this state under any federal law enacted after August 31, 1995, which authorizes the distribution of block grants for the purposes for which the grant is made, the governor shall not administer and no board, commission or department may encumber or expend moneys received as a part of the grant unless the governor first notifies the cochairpersons of the joint committee on finance, in writing, that the grant has been made. The notice shall contain a description of the purposes proposed by the governor for expenditure of the moneys received as a part of the grant. If the cochairpersons of the committee do not notify the governor that the committee has scheduled a meeting for the purpose of reviewing the proposed expenditure of grant moneys within 14 working days after the date of the governor's notification, the moneys may be expended as proposed by the governor. If, within 14 working days after the date of the governor's notification, the cochairpersons of the committee notify the governor that the committee has scheduled a meeting for the purpose of reviewing the proposed expenditure of grant moneys, no moneys received as a part of the grant may be expended without the approval of the committee. This subdivision does not apply to the expenditure of block grant funds that are allocated under s. 49.175.

SECTION 78q. 16.54 (11) of the statutes is renumbered 16.54 (11) (a) and amended to read:

16.54 (11) (a) The Except as provided in par. (b), the state board, commission or department designated by the governor under sub. (2) to administer federal payments in lieu of taxes on national forest lands shall distribute those payments to towns, cities and villages, but not to counties, that provide general governmental services and contain national forest lands. That distribution shall reflect the level of services provided by, and the number of acres of national forest land within, the town, city or village in accordance with 31 USC 6907.

SECTION 78r. 16.54 (11) (b) of the statutes is created to read:

16.54 (11) (b) If permitted under federal law, all moneys accepted by the governor under sub. (1) that are designated as federal payments in lieu of taxes on national forest lands shall be distributed to school districts that contain national forest lands within their boundaries. The distribution shall reflect the number of acres of national forest land that are located within the school district.

SECTION 79. 16.54 (12) of the statutes is created to read:

16.54 (12) (a) The department of health and family services may not expend or encumber any moneys received under s. 20.435 (8) (mm) unless the department of health and family services submits a plan for the expenditure of the moneys to the department of administration and the department of administration approves the plan.

(b) The department of workforce development may not expend or encumber any moneys received under s. 20.445 (3) (mm) unless the department of workforce development submits a plan for the expenditure of the moneys to the department of administration and the department of administration approves the plan.

(c) The department of administration may approve any plan submitted under par. (a) or (b) in whole or in part. If the department approves any such plan in whole or part, the department shall notify the cochairpersons of the joint committee on finance, in writing, of the department's action under this paragraph.

(d) At the end of each fiscal year, the department of administration shall determine the amount of moneys that remain in the appropriation accounts under ss. 20.435 (8) (mm) and 20.445 (3) (mm) that have not been approved for encumbrance or expenditure by the department pursuant to a plan submitted under par. (a) or (b) and shall require that such moneys be lapsed to the general fund. The department shall notify the cochairpersons of the joint committee on finance, in writing, of the department's action under this paragraph.

SECTION 79e. 16.54 (13) of the statutes is created to read:

16.54 (13) (a) If the state receives any interest payments from the federal government relating to the timing of expenditures by the state pursuant to a federal government grant program or federal government contract, the payments shall be credited to the general fund as general purpose revenue -- earned.

(b) If the state is required to pay any interest payments to the federal government relating to the timing of expenditures by the state pursuant to a federal government grant program or federal government contract, the secretary shall notify the cochairpersons of the joint committee on finance, in writing, that the state is required to pay an interest payment. The notice shall contain an accounting of the amount of interest that the state is required to pay. If the cochairpersons of the committee do not notify the secretary that the committee has scheduled a meeting for the purpose of reviewing the proposed payment of interest within 14 working days after the date of the secretary's notification, the payment may be made as proposed by the secretary. If, within 14 working days after the date of the secretary's notification, the cochairpersons of the committee notify the secretary that the committee has scheduled a meeting for the purpose of reviewing the proposed interest payment, no interest payment may be made without the approval of the committee.

SECTION 81m. 16.702 (4) of the statutes is amended to read:

16.702 (4) The department shall deposit all revenues received from fees assessed under this section in the information technology investment VendorNet fund.

SECTION 82m. 16.72 (2) (b) of the statutes is amended to read:

16.72 (2) (b) Except as provided in s. ss. 16.751 and 565.25 (2) (a) 4., the department shall prepare or review specifications for all materials, supplies, equipment, other permanent personal property and contractual services not purchased under standard specifications. Such "nonstandard specifications" may be generic or performance specifications, or both, prepared to describe in detail the article which the state desires to purchase either by its physical properties or programmatic utility. When appropriate for such nonstandard items or services, trade names may be used to identify what the state requires, but wherever possible 2 or more trade names shall be designated and the trade name of any Wisconsin producer, distributor or supplier shall appear first.

SECTION 82p. 16.72 (2) (d) of the statutes is amended to read:

16.72 (2) (d) To Except as permitted in s. 16.751, to the extent possible, the department and any other designated purchasing agent under s. 16.71 (1) shall write specifications for the purchase of materials, supplies, commodities, equipment and contractual services so as to permit their purchase from prison industries, as created under s. 303.01 (1).

SECTION 84. 16.72 (6) and (7) of the statutes are repealed.

SECTION 85m. 16.75 (1) (a) 1. of the statutes is amended to read:

16.75 (1) (a) 1. All orders awarded or contracts made by the department for all materials, supplies, equipment and contractual services to be provided to any agency, except as otherwise provided in par. (c) and subs. (2), (2g), (2m), (3m), (3t), (6), (7), (8) and (9) and ss. 16.73 (4) (a), 16.751, 16.754, 50.05 (7) (f), 287.15 (7) and 301.265, shall be awarded to the lowest responsible bidder, taking into consideration life cycle cost estimates under sub. (1m), when appropriate, the location of the agency, the quantities of the articles to be supplied, their conformity with the specifications, and the purposes for which they are required and the date of delivery.

SECTION 86m. 16.75 (2m) (g) of the statutes is amended to read:

16.75 (2m) (g) After receiving each offerer's best and final offer, the department shall determine which proposal is most advantageous and shall award the order or contract to the person who offered it. The department's determination shall be based only on price and the other evaluation factors specified in the request for proposals. The department shall state in writing the reason for the award and shall place the statement in the contract file. This paragraph does not apply to procurements under s. 16.751.

SECTION 89m. 16.751 of the statutes is created to read:

16.751 Information technology purchases by investment board. (1) In this section, "information technology" has the meaning given under s. 16.97 (6).

(2) The requirements of ss. 16.72 (2) (b) and (d) and 16.75 (1) (a) 1. and (2m) (g) do not apply to procurements by the investment board for information technology purposes.

SECTION 93. 16.76 (4) (a) of the statutes is amended to read:

16.76 (4) (a) In this subsection, "master lease" means an agreement entered into by the department on behalf of one or more agencies for the lease of goods or the provision of to obtain property or services under which the department makes or agrees to make periodic payments.

(ag) The department may pay or agree to pay to the lessor under a master lease a sum substantially equivalent to or in excess of the aggregate value of goods involved property or services obtained and it may be agreed that the department or one or more agencies will become, or for no other or nominal consideration has the option to become, the owner of goods leased or to be leased property obtained or to be obtained under a master lease upon full compliance with the its terms of the agreement.

SECTION 95. 16.76 (4) (b) of the statutes is amended to read:

16.76 (4) (b) The Except as provided in par. (h), the department may enter into a master lease whenever the department determines that it is advantageous to the state to do so. If the master lease provides for payments to be made by the state from moneys that have not been appropriated at the time that the master lease is entered into, the master lease shall contain the statement required under s. 16.75 (3).

SECTION 96. 16.76 (4) (c) of the statutes is amended to read:

16.76 (4) (c) Payments under a master lease may include interest payable at a fixed or variable rate as the master lease may provide. The department may enter into agreements and ancillary arrangements which the department determines to be necessary to facilitate the use of a master lease, including liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, interest rate guaranty agreements, reimbursement agreements and indexing agreements.

SECTION 97. 16.76 (4) (e) of the statutes is amended to read:

16.76 (4) (e) The department may grant the lessor a perfected security interest in goods leased property obtained or to be leased obtained under each a master lease. The department shall record and preserve evidence of the security interest in its offices at all times during which the master lease is in effect.

SECTION 98. 16.76 (4) (f) of the statutes is amended to read:

16.76 (4) (f) The department may appoint one or more fiscal agents for each master lease. Each fiscal agent shall be an incorporated bank or trust company authorized by the laws of the United States or of the state in which it is located to do business as a banking or trust company. Sections 16.705 and 16.75 do not apply to contracts for fiscal agent services. The department shall periodically require competitive proposals, under procedures established by the department, for fiscal agent services under this paragraph. There may be deposited with a fiscal agent, in a special account for such purpose only, a sum estimated to be sufficient to enable the fiscal agent to make all payments which will come due under the master lease not more than 15 days after the date of deposit. The department may make such other provisions respecting fiscal agents as it considers necessary or useful and may enter into a contract with any fiscal agent containing such terms, including compensation, and conditions in regard to the fiscal agent as it considers necessary or useful.

SECTION 99. 16.76 (4) (g) of the statutes is created to read:

16.76 (4) (g) Sections 16.705 and 16.75 do not apply to agreements or ancillary agreements under par. (c) or contracts for fiscal agent services under par. (f).

SECTION 100. 16.76 (4) (h) of the statutes is created to read:

16.76 (4) (h) A master lease may not be used to obtain a facility for use or occupancy by the state or an agency or instrumentality of the state or to obtain an internal improvement.

SECTION 102. 16.76 (4) (j) of the statutes is created to read:

16.76 (4) (j) If a master lease is used to finance payments to be made under an energy conservation construction project as provided in s. 16.858 (2), payments under the lease may not be conditioned upon any payment required to be made by the contractor pursuant to an energy conservation audit.

SECTION 105m. 16.857 of the statutes is created to read:

16.857 Agency building maintenance. (1) In this section, "agency" has the meaning given under s. 16.70 (1).

(2) The department shall require each agency to which moneys are appropriated in any fiscal period for capital building maintenance purposes to submit a work plan to the department describing the agency's proposal for expenditure of those moneys. The plan shall be submitted for such period as the secretary may require, and shall be filed no later than the date prescribed by the secretary. Upon approval of a work plan by the department, the department shall forward the plan to the building commission for its review and approval under s. 13.48 (30).

(3) Notwithstanding s. 16.50 (2), the secretary may withhold approval of any proposed expenditure under s. 16.50 (2) by any agency for any significant capital building maintenance project, as determined by the secretary, if a project does not conform to a work plan approved by the department and the building commission.

(4) Following the end of each fiscal year, the department shall submit a report to the joint committee on finance concerning the expenditure of capital building maintenance moneys by each agency and capital building maintenance work completed by each agency during the preceding fiscal year.

SECTION 106. 16.858 (2) of the statutes is renumbered 16.858 (2) (a) and amended to read:

16.858 (2) (a) Any A contract under sub. (1) shall require may provide for the construction work to be financed by the state or by the contractor to undertake the construction work at its own expense. The contract shall provide for the state to pay a maximum stated amount, which shall include any financing costs incurred by the contractor. The maximum stated amount may not exceed the minimum savings determined under the audit to be realized by the state within the period specified in the audit. The state shall make payments under the contract as the savings identified in the audit are realized by the state, in the amounts actually realized, but not to exceed the lesser of the maximum stated amount or the actual amount of the savings realized by the state within the period specified in the audit. If the department provides financing for construction work, the department may finance any portion of the cost of the work under a master lease entered into as provided under s. 16.76 (4). If the department provides financing for the construction work and the stated amount to be paid by the state under the contract is greater than the amount of the savings realized by the state within the period specified in the audit under sub. (1), the contract shall require the contractor to remit the difference to the department.

(b) The department shall charge the cost of the payments made by the state to the contractor to the applicable appropriation for fuel and utility costs at the building, structure or facility where the work is performed in the amounts equivalent to the savings that accrue to the state under that appropriation from expenditures not made as a result of the construction work, as determined by the department in accordance with the contract. The department may also charge its costs for negotiation and, administration and financing of the contract to the same appropriation.

SECTION 107. 16.858 (4) of the statutes is amended to read:

16.858 (4) No later than January 1 of each year, the secretary shall report to the cochairpersons of the joint committee on finance identifying any construction work for which the department has contracted under this section for which the state has not made its final payment has not been made as of the date of the preceding report, together with the actual energy cost savings realized by the state as a result of the contract to date, or the estimated energy cost savings to be realized by the state if the total savings to be realized in the audit under sub. (1) have not yet been realized, and the date on which the state made its final payment under the contract or, if the final payment has not been made, the latest date on which the state is obligated to make its final payment under the contract, and any amount that remains payable to the state under the contract.

SECTION 109. 16.956 of the statutes is repealed.

SECTION 110. 16.964 (6) of the statutes is created to read:

16.964 (6) (a) In this subsection, "tribe" means a federally recognized American Indian tribe or band in this state.

(b) From the appropriation under s. 20.505 (6) (ks), the office shall provide grants to tribes to fund tribal law enforcement operations. To be eligible for a grant under this subsection, a tribe must submit an application for a grant to the office that includes a proposed plan for expenditure of the grant moneys. The office shall review any application and plan submitted to determine whether that application and plan meet the criteria established under par. (c). The office shall review the use of grant money provided under this subsection to ensure that the money is used according to the approved plan.

(c) The office shall develop criteria and procedures for use in administering this subsection. Notwithstanding s. 227.10 (1), the criteria and procedures need not be promulgated as rules under ch. 227.

SECTION 110j. 16.964 (7) of the statutes is created to read:

16.964 (7) (a) From the appropriation under s. 20.505 (6) (kq), the office shall provide grants to counties to fund county law enforcement services. The office may make a grant to a county under this subsection only if all of the following apply:

1. The county borders one or more federally recognized Indian reservations.

2. The county has not established a cooperative county-tribal law enforcement program under s. 165.90 with each federally recognized Indian tribe or band that has a reservation bordering the county.

3. The county demonstrates a need for the law enforcement services to be funded with the grant.

4. The county submits an application for a grant and a proposed plan that shows how the county will use the grant moneys to fund law enforcement services.

(b) The office shall review an application and plan submitted under par. (a) 4. to determine if the application and plan meet the requirements of par. (a) 1. to 3. and the criteria established under par. (c). The office may not award an annual grant in excess of $50,000 to any county under this subsection.

(c) The office shall develop criteria and procedures for use in administering this subsection. Notwithstanding s. 227.10 (1), the criteria and procedures need not be promulgated as rules under ch. 227.

SECTION 110k. 16.964 (8) of the statutes is created to read:

16.964 (8) From the appropriation under s. 20.505 (6) (ks), the office shall make the following grants:

(a) To the Stockbridge-Munsee Indian tribe, $175,000 in each fiscal year for a public safety initiative.

(b) To the St. Croix Chippewa Indian tribe, $150,000 in each fiscal year to develop law enforcement capabilities on the reservation and trust lands of the tribe.

SECTION 110m. 16.965 (title), (1) and (2) of the statutes are created to read:

16.965 (title) Planning grants to local governmental units. (1) In this section:

(a) "Local governmental unit" means a county, city, village, town or regional planning commission.

(b) "Smart growth area" means an area that will enable the development and redevelopment of lands with existing infrastructure and municipal, state and utility services, where practicable, and that will encourage efficient development patterns that are both contiguous to existing development and at densities which have relatively low municipal, state governmental and utility costs.

(c) "Supporting agency" means the department of administration, the department of agriculture, trade and consumer protection, the department of commerce, the department of natural resources, the department of revenue and the board of regents of the University of Wisconsin System.

(2) From the appropriation under s. 20.505 (1) (kh), the department may provide grants to local governmental units to be used to finance the cost of planning activities, including contracting for planning consultant services, public planning sessions and other planning outreach and educational activities, or for the purchase of computerized planning data, planning software or the hardware required to utilize that data or software. The department may require any local governmental unit that receives a grant under this section to finance not more than 25% of the cost of the product or service to be funded by the grant from the resources of the local governmental unit. A local governmental unit that desires to receive a grant under this subsection shall file an application with the department. The application shall contain a complete statement of the expenditures proposed to be made for the purposes of the grant. No local governmental unit is eligible to receive a grant under this subsection unless the local governmental unit agrees to utilize the grant to finance planning for all of the purposes specified in s. 66.0295 (2).

SECTION 110n. 16.965 (title), (1) and (2) of the statutes, as created by 1999 Wisconsin Act .... (this act), are repealed.

SECTION 110no. 16.965 (3) of the statutes is created to read:

16.965 (3) Prior to awarding a grant to a local governmental unit under sub. (2), the department shall forward a statement of the expenditures proposed to be made under the grant to the Wisconsin land council for its written approval. The council may approve or disapprove any proposed grant.

SECTION 110p. 16.965 (3) of the statutes, as created by 1999 Wisconsin Act .... (this act), is repealed.

SECTION 110q. 16.965 (4) of the statutes is created to read:

16.965 (4) In determining whether to approve a proposed grant, greater precedence shall be accorded to applications of local governmental units that contain one or more of the following elements:

(a) Planning efforts that address the interests of overlapping or neighboring jurisdictions.

(b) Planning efforts that contain a specific description of the means by which one or more of the following goals will be achieved:

1. Promotion of the redevelopment of lands with existing infrastructure and public services and the maintenance and rehabilitation of existing residential, commercial and industrial structures.

2. Encouragement of neighborhood designs that support a range of transportation choices.

3. Protection of natural areas, including wetlands, wildlife habitats, lakes, woodlands, open spaces and groundwater resources.

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