Currently, the investment board may contract with outside investment advisers for the management of assets from any fund or trust under its control for investment in real estate, mortgages, equities, debt of foreign corporations and debt of foreign governments. No more than 15% of the total assets of the fixed retirement investment trust or 15% of the total assets of the variable retirement investment trust may be covered by such contracts. This bill increases the cap from 15% to 25% of such funds.
Under current law, the investment board may establish a bonus compensation plan for the executive director and other employes of the board who are appointed in the unclassified service of the state. Under the plan, these employes may qualify for an annual bonus for meritorious performance, which is required to be distributed over a three-year period. Current law provides that the total amount of 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. In addition, no bonus awarded to an individual employe for any fiscal year may exceed a total of 25% of the annual salary of the employe. 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.
This bill authorizes the investment board to create two different bonus compensation plans for two different groups of employes. The first plan provides bonus compensation for the executive director, internal auditor, unclassified employes appointed by the internal auditor and other unclassified employes of the board who are not investment professionals, as determined by the secretary of administration. This plan is identical to the bonus compensation plan under current law except that the total amount of bonuses awarded for any fiscal year may not exceed a total of 10% of the total annualized salaries of these employes as compared to all unclassified employes of the board.
The second plan provides bonus compensation for unclassified employes of the investment board who are investment professionals, as determined by the secretary of administration. The plan provides that the total amount of bonuses awarded for any fiscal year may not exceed a total of 25% of the total annualized salaries of these employes. In addition, the plan provides that no bonus awarded to an individual employe for any fiscal year may exceed a total of 50% of the annual salary of the employe. Under the plan, there is no requirement that the bonus compensation be paid out over a three-year period.
Under current law, the investment board must make all purchases of materials, supplies, equipment or services through the department of administration (DOA). DOA may delegate authority to the board and other state agencies to make purchases independently of DOA, but any agency to which DOA delegates purchasing authority must adhere to all statutory requirements that would apply if DOA made the purchases. In making purchases, DOA and the agencies to which DOA delegates purchasing authority are required, subject to numerous exceptions, to make purchases by solicitation of bids or competitive sealed proposals preceded by public notice, and to adhere to other requirements.
This bill permits the investment board to make all purchases independently of DOA, and excludes the investment board from certain requirements that DOA and other executive branch agencies must adhere to in making purchases, including the requirement for solicitation of bids or proposals preceded by public notice. Under the bill, the board must, however, procure all stationery and printing from the lowest responsible bidder.
Under current law, the secretary of administration must limit the total amount of any temporary reallocations from segregated funds to the general fund at any one time during a fiscal year to an amount equal to 5% of the total appropriations of general purpose revenue, calculated by the secretary as of that time and for that fiscal year. This bill authorizes the secretary of administration to permit an additional 3% of the total appropriations of general purpose revenue to be used for temporary reallocations to the general fund but only if the reallocation is for a period not to exceed 30 days.
Currently, all state agencies, except the legislature and the courts, must submit biennial budget requests to DOA no later than September 15 of each even-numbered year. This bill directs those agencies to submit biennial budget requests to DOA before each budget period no later than the date prescribed by DOA.
Current statutes provide that "[n]o bill directly or indirectly affecting general purpose revenues ... may be enacted by the legislature if the bill would cause the estimated general fund balance on June 30 of any fiscal year ... to be an amount equal to less than one percent of the total general purpose revenue appropriations for that fiscal year plus any amount from general purpose revenue designated as "Compensation Reserves" for that fiscal year ...."
This bill changes that provision, for fiscal years 2000-01 and thereafter, with respect to the percentage of the general fund balance as follows:
1. For fiscal year 2000-01, 1.1% of general purpose revenue (GPR) appropriations for that fiscal year.
2. For fiscal year 2001-02, 1.2% of GPR appropriations for that fiscal year.
3. For fiscal year 2002-03, 1.4% of GPR appropriations for that fiscal year.
4. For fiscal year 2003-04, 1.6% of GPR appropriations for that fiscal year.
5. For fiscal year 2004-05, 1.8% of GPR appropriations for that fiscal year.
6. For fiscal year 2005-06 and thereafter, 2% of GPR appropriations for that fiscal year.
Under current law, the board of commissioners of public lands (BCPL) is responsible for managing certain lands held in trust by the state. The proceeds from these lands are deposited in the common school fund, the normal school fund, the university fund and the agricultural college fund (collectively, the trust funds). Under current law, BCPL may deduct expenses necessarily incurred in caring for and selling the lands from moneys deposited in the trust funds. This bill provides that such expenses include soil surveys and soil mapping activities.
Under current law, BCPL may loan moneys from the trust funds to certain local units to government. Current law also provides that any such borrower, after March 15 and prior to August 1 of any year, may prepay any part of the loan without penalty. This bill provides that, if a borrower prepays the outstanding principal balance of the loan before the due date of the first instalment payment, BCPL may charge the borrower a fee to cover any administrative costs incurred by BCPL in originating and servicing the loan.
Under current law, the governor may not administer, and no board, commission or department may encumber or expend, any block grant moneys received from the federal government under any federal law enacted after August 31, 1995, unless the governor first notifies JCF in writing that the block grant has been received and allows JCF an opportunity to review and approve or disapprove its proposed expenditure. This bill exempts from JCF review and approval the expenditure of block grant moneys that are allocated for certain public assistance and local assistance programs.
Public utility regulation
This bill requires the public service commission (PSC) to conduct a study on implementing retail consumer choice for all consumers of electricity in this state. The study must address the following: 1) the infrastructure, taxation and statutory changes that are necessary for implementing retail choice; 2) recommendations for regulating new market entrants; 3) transitional, stranded and public benefits costs; and 4) the development and use of renewable energy resources.
Under current law, certain persons may file complaints with the PSC that allege a violation of the statutory provisions regarding public utilities. In addition, the PSC may, on its own motion, initiate a proceeding to determine whether such a violation has occurred.
This bill prohibits a person from filing a complaint, or making any other filing in a proceeding before the PSC, unless there is a nonfrivolous basis for doing so and unless each of the following is satisfied: 1) the filing is reasonably supported by applicable law; 2) the allegations in the filing have evidentiary support or are likely to have such support after further investigation or discovery; 3) the filing is not intended to harass another party to the proceeding; and 4) the filing is not intended to create a needless increase in the cost of litigation.
Within 60 days after a complaint is filed, the PSC must determine whether the complaint violates the specified prohibitions. The bill also allows the PSC to determine at any time during a proceeding whether a person has made a filing that violates the prohibitions. If the PSC determines that there is a violation, the PSC must order the violator to pay the reasonable expenses that any other party to the proceeding incurred because of the filing. In addition, the PSC may directly assess a forfeiture of between $25 and $5,000 against the violator.
This bill allows the PSC to approve a tariff filed by an electric public utility that allows a firm customer of the utility (an industrial or commercial customer of the utility that receives firm service, which is retail electric service that is provided on a noninterruptible basis) to sell unused firm service to an interruptible customer of the utility, which is an industrial or commercial customer of the utility that receives retail electric service on an interruptible basis. The PSC may approve such a tariff if it determines that such sales contribute to energy conservation and load management that are designed to reduce the energy needs of firm customers. If a firm customer contracts with an interruptible customer for such a sale under a tariff approved under the bill, the public utility must replace the firm service that is sold by the firm customer with interruptible service, and provide firm service to the interruptible customer in an amount that is equal to 80% of the amount of firm service that was sold.
Under current law, the PSC may, under certain circumstances, obtain from any public utility any information necessary for the PSC to perform its duties and may order a public utility to produce certain records. Under this bill, the PSC may require a telecommunications utility to submit information only if the PSC reduces, to the extent practicable, any burden on the telecommunications utility that results from complying with the requirement. In addition, a telecommunications utility is not required to provide information to the PSC unless the PSC certifies that the information is necessary for the PSC to enforce a statutory requirement and that the information is not unnecessarily duplicative of information that is already in the PSC's possession.
Also under current law, the PSC is allowed to withhold from public inspection any information that aids a competitor of a public utility. Under this bill, the PSC is required to withhold such information from public inspection. Under the bill, the PSC is also required to withhold from public inspection any information that is designated as confidential by a public utility that may aid a competitor of the public utility.
Under current law, a tariff filed with the PSC in which a telecommunications utility offers either a new telecommunications service or promotional rates may not take effect until ten days after the tariff is filed. Under certain specified circumstances, the PSC may also suspend the effectiveness of such a tariff. This bill provides that such a tariff is effective on the date specified in the tariff, unless the PSC suspends the effectiveness of the tariff as allowed under current law.
Other state government
State building program
This bill enumerates in the 1999-2001 state building program a full-scale aquaculture demonstration facility to be built at Ashland and to be operated by the board of regents of the UW System.
Wisconsin election campaign fund supplement
Currently, a candidate for legislative office at the general election or a special election may qualify to receive a grant from the Wisconsin election campaign fund to finance certain campaign expenses. The maximum amount of the grant that is available to such a candidate may be reduced if the balance in the legislative and special election campaign account does not contain sufficient money to provide all eligible candidates who apply and qualify for grants with the maximum grants to which the candidates are entitled. The amount of money in the legislative and special election campaign account and the other accounts of the Wisconsin election campaign fund depends in part upon the number of designations made to the fund by individuals filing income tax returns.
This bill transfers $750,000 in general purpose revenue into the legislative and special election campaign account in fiscal year 2000-01. The bill also directs the secretary of administration to submit proposed legislation relating to campaign finance reform and composition of the elections board to the cochairpersons of JCF no later than April 1, 1999.
State land information system
Currently, DOA may develop and maintain a geographic information system relating to land in this state. Currently, the land information board directs and supervises the state land information program. The board is abolished effective September 1, 2003. Prior to September 1, 2003, counties must transfer to the land information board a portion of the fees collected by registers of deeds for recording documents. Revenue from these fees supports the operation of the board and the remainder is used to provide grants to counties for land records modernization projects.
This bill directs the land information board to transfer a portion of this fee revenue, prior to September 1, 2003, to DOA for the purpose of developing and maintaining a computer-based Wisconsin land information system, without direction or supervision from the board. Under the bill, DOA continues to be responsible for the development and maintenance of the system on and after September 1, 2003, but the bill provides no specific funding for this purpose.
The bill also authorizes DOA to conduct soil surveys and soil mapping activities. Under the bill, DOA may assess any state agency any amount that it determines to be required to conduct the surveys and mapping activities. In addition, the bill permits DOA to contract with BCPL to conduct soil surveys and soil mapping activities on lands under the jurisdiction of BCPL.
State grants for local governmental planning
This bill permits DOA to award grants to counties, cities, villages, towns and regional planning commissions to finance the cost of planning activities, including contracting for planning consultant services, public planning sessions and other planning outreach and educational activities, or to purchase computerized planning data, planning software or the hardware required to utilize that data or software. The grants are funded by federal moneys provided to this state for transportation-related planning activities. DOA must require any local governmental unit that receives a grant to finance at least 20% of the cost of the product or service to be funded by that grant from its own resources. All proposed expenditures to be made under any grant are subject to the written approval of the secretary of transportation.
National and community service board functions
Under current law, the national and community service board, attached to DOA, uses federal moneys and moneys that it receives from gifts, grants and bequests to assist persons who operate service programs that address unmet human, educational, environmental or public safety needs. Under this bill, the board is attached to the department of health and family services.
Currently, the national and community service board awards Wisconsin promise challenge grants to countywide consortia of public and private entities that provide resources to underserved youth. This program expires on January 1, 2000. The bill transfers administration of this program to DOA.
Penalty assessments
With certain exceptions, current law imposes a penalty assessment on any person who is ordered to pay a fine or forfeiture for violating a state law or a local ordinance. The penalty assessment is set at 23% of the total amount of the fines or forfeitures imposed for the violation. The moneys collected from penalty assessments are credited directly to various appropriation accounts based on a statutory formula and the appropriation accounts specify the purposes for which the moneys may be used. These purposes include: 1) training for local law enforcement officers and state correctional officers; 2) purchase of crime laboratory equipment; 3) matching federal funds provided for various law enforcement programs; 4) county-tribal law enforcement projects; 5) diversion of youth from gang activities; and 6) alcohol and other drug abuse prevention and treatment for minors.
This bill provides that, instead of being credited to specific appropriation accounts based on a statutory formula, all moneys collected from penalty assessments are credited to a single appropriation account in the office of justice assistance in DOA. Specified amounts of the moneys in this appropriation account are then transferred to other appropriation accounts to be used for the same purposes as under current law, except that under the bill no penalty assessment moneys are provided to fund county-tribal law enforcement projects. Under the bill, county-tribal law enforcement projects are funded using revenue that the state receives under Indian gaming compacts. The bill also allows penalty assessment moneys to be used for several new purposes, including information technology systems for DOC, automated justice information systems and reimbursement to counties for the costs of providing crime victim and witness services.
Resource recovery and recycling
This bill eliminates a requirement for DOA to maintain a clearinghouse of information regarding products made from recycled or recovered materials for purchase by state agencies and authorities. The bill also repeals an appropriation to DOA from the recycling fund to finance DOA's recycling procurement specifications functions and administration of the recycled materials clearinghouse.
State master lease program
Currently, DOA may enter into a master lease for the lease of goods or the provision of services on behalf of one or more state agencies. This procedure may be used in lieu of direct procurement of goods or services and in some cases is used to finance the acquisition of goods by the state.
This bill permits DOA to use a master lease to obtain any property (real or personal) or services on behalf of a state agency, except that DOA may not use a master lease to obtain facilities for use or occupancy by the state or to obtain internal improvements (public works). The bill also permits DOA to use a master lease to obtain any property or services related to public safety functions on behalf of a local government.
Currently, DOA may undertake energy conservation construction projects. These projects are different from other state building projects in that they are undertaken outside the authorized state building program and are not subject to public notice and bidding requirements. Under such a project, the contractor guarantees energy savings to be realized by the state in a stated amount within a specified period, and, if the savings are not realized by the state within that period, the contractor need not be paid by the state for any difference between the amount guaranteed in the contract and the actual savings realized when the state pays for the construction project. Currently, the contractor must finance construction of any project at its own expense.
Under this bill, the state or the contractor may finance the cost of construction. If the state finances the cost of construction and the savings resulting from the construction within the period specified in the audit are less than the amount specified in the contract, the contractor must remit the difference to the state. The bill provides that, if a master lease is used to finance payments to be made to a contractor who is engaged in such a construction project, the payments under the lease may not be conditioned upon any payment required to be made by the contractor resulting from the contractor's guarantee.
Glass ceiling initiative
This bill creates a glass ceiling board, which is attached to DOA for administrative purposes, and directs the board to do all of the following:
1. Administer a Governor's Glass Ceiling Award Program to recognize annually Wisconsin businesses and organizations that advance or promote the advancement of women and minority group members to upper-level management positions.
2. Disseminate information to employers on glass ceiling issues and effective programs that have helped eliminate barriers to the promotion of women and minority group members to upper-level management positions.
3. Identify businesses and industries that provide exceptional opportunities for women and minority group members to advance to upper-level management positions, and, whenever appropriate, promote the expansion of such businesses and industries in this state.
4. Actively promote the appointment of qualified women and minority group members to public and private governing bodies.
Ethics and lobbying law counsel
This bill permits the governor, upon request of the ethics board, to employ special counsel for the purpose of assisting the board in investigating or prosecuting an alleged violation of the lobbying regulation law or the code of ethics for state public officials and employes. The special counsel is paid from a sum sufficient appropriation for the compensation of special counsel. Currently, neither the governor nor the ethics board is authorized to employ special counsel for this purpose.
Cultural arts authorities
This bill directs the legislative reference bureau (LRB) to prepare a bill draft creating cultural arts authorities, based on instructions provided by DOA. The secretary of administration must submit the bill to the cochairpersons of JCF no later than April 1, 1999.
Sales of tobacco to minors
This bill requires the LRB to prepare legislation, based on final drafting instructions submitted by DOA no later than March 1, 1999, authorizing the development of a statewide protocol for licensing authorities and law enforcement agencies in conducting compliance surveys to determine the prevalence of illegal retail sales of tobacco products to underage persons. The bill requires the secretary of administration to submit the proposed legislation to the cochairpersons of JCF not later than April 1, 1999.
Transitional housing grants
Under current law, DOA may award grants that do not exceed $50,000 each to counties and municipalities, community action agencies and private, nonprofit organizations for the purpose of providing housing and associated support services to homeless families and individuals. This bill removes the dollar limit on the grants so that a grant of any size may be awarded.
Representation by department of justice
Currently, if requested to do so by the head of a state agency, the department of justice (DOJ) defends that agency or any state officer, employe or agent of that agency in a civil action brought against the agency or person for an act arising out of his or her official duties. In addition to receiving general program revenue, the attorney general is paid by state agencies for the legal services provided under contracts or understandings between DOJ and the other agencies.
This bill appropriates to DOJ any money that is received by DOJ as the result of a contract or understanding between DOJ and another state agency that is approved by JCF or as part of the biennial budget act. Any money collected by DOJ under a contract or understanding with a state agency that is not approved by JCF or as part of the biennial budget act is not directly appropriated to DOJ. In addition, the bill provides that a state agency may not be charged for legal services provided to that agency by DOJ if DOJ is not required by statute to provide legal services to that agency and if that agency does not have a contract or understanding with DOJ that is approved by JCF or as part of the biennial budget act.
State employe addresses and telephone numbers
Under current law, any person may inspect, copy or receive a copy of a public record unless the record is specifically exempted from access under state or federal law or authorized to be withheld from access under state law, or unless the custodian of the record demonstrates that the harm done to the public interest by providing access to the record outweighs the strong public interest in providing access.
This bill specifically authorizes the custodian of any record of a state governmental unit to withhold from access information contained in a record of the governmental unit pertaining to the home address or home telephone number of any employe of that governmental unit.
Expenditure authority of department of administration
Currently, general purpose revenue is appropriated to DOA in separate appropriations for general program operations and for the operation of the state prosecution system (compensation of district attorneys and their deputies and assistants). This bill consolidates those appropriations.
Currently, program revenue is appropriated to DOA in four separate appropriations for: 1) transportation services; 2) printing, mail distribution and record services; 3) financial services; and 4) other services, except building construction services, telecommunications and data processing services, information technology services and projects and Wisconsin land council services. The revenue is derived from moneys received from other state agencies. This bill consolidates those four appropriations.
Under the consolidations, revenue collected for one purpose may be used by DOA for a different purpose within the same appropriation account, subject to the intent of the governor, JCF and legislature, as specified in various budgetary documents.
Funding source for department of administration positions
Currently, with limited exceptions, no state agency for which full-time equivalent positions have been authorized may change the funding source of any position that was provided by the legislature, JCF or the governor at the time the position was authorized or at the time the funding source was last changed.
This bill permits DOA, during the period beginning on the day on which this bill becomes law and ending on June 30, 2001, or on the day before publication of the 2001-03 biennial budget act, whichever is later, to change the funding source of any position authorized for DOA to carry out its functions with respect to supervision and management, the land information board, risk management, facilities management, housing assistance or gaming regulation if the position is currently funded from program revenue and the funding for the position would remain funded from program revenue that is collected by DOA to carry out one of these functions. The bill provides that any such change in the funding source of a position remains in effect after the period specified in the bill unless changed in accordance with current procedures.
Arrangements between governor and state agencies
This bill permits the governor to enter into cooperative arrangements with state agencies under which the agencies provide assistance to the governor in carrying out his or her responsibilities. The bill also permits the governor to expend any moneys received from the agencies to carry out these arrangements. Currently, the governor is not expressly authorized to enter into such arrangements.
Legislative technology bureau services
This bill permits the director of the legislative technology services bureau, by lease agreement, to purchase and install computer networking equipment to serve facilities of state agencies that are located in the same building in which a legislative branch office is located or in an adjacent building, and to provide related maintenance and support services to such agencies. Currently, the bureau is authorized and directed to provide and coordinate information technology support and services to the legislative branch of state government only.
Consolidation of state vehicle fleet management functions
This bill directs DOA to submit for consideration of JCF during the fourth quarter of 1999, an implementation plan for consolidating the vehicle fleet management functions of the department of natural resources (DNR) with the corresponding functions of DOA. The bill also directs DOA to submit for consideration of JCF during the third quarter of 2000 an implementation plan for consolidating the vehicle fleet management functions of the department of transportation (DOT) and the UW-Madison with the corresponding functions of DOA. The bill permits JCF to approve or to modify and approve the plans. If JCF approves a plan, with or without modifications, DOA may implement that plan. If JCF does not approve any plan, DOA may not implement that plan.
Taxation
Income taxation
This bill makes various changes in the structure of the individual income tax system. The bill modifies the calculation of adjusted gross income (AGI), prohibits new claims from being made under certain income tax credits, creates a personal exemption, modifies the itemized deductions credit and modifies the sliding scale standard deduction and the tax rates and brackets.
