Governor: Amend current law regarding the state master lease program as follows:
Expand basic authority regulating the use of master leases. Modify current law to allow DOA to enter into a master lease to obtain property or services, rather than for the lease of goods or the provision of services. Specify that a master lease may not be used to obtain a facility for use or occupancy by the state, a state agency, or any other instrument of the state or to obtain an internal improvement. Broaden the authority of DOA to enter varied financing agreements, which the Department determines are necessary to facilitate the use of a master lease, and repeal the seven specific financing tools currently identified in the statute (liquidity facilities, re-marketing or dealer agreements, letters of credit, insurance policies, interest rate guarantees, reimbursements and indexing agreements). Exempt master leases from the statutory requirements governing contractual services and lowest responsible bidder requirements. Lastly, clarify the uniform commercial code exemption for master leases from the requirement to file a perfect security interest with Department of Financial Institutions (DFI). DOA is directed to record and preserve the record of perfect interest throughout the master lease and language is included that clarifies that master leases have priority of interest over conflicting interest of an encumbrancer or owner of the real estate.
Under current law, the master lease program may be used for the lease of goods or the provision of services on behalf of one or more state agencies. The types of financing are enumerated in the statutes. Under current law the fiscal agent services are exempt from the requirements governing contractual services and lowest responsible bidder requirements; but the master lease contracts are not. The current process of perfecting security interest is necessary to determine the order of ownership of a property dispute. This is normally done by filing a notice of security interest with DFI. Master leases are currently exempt form the uniform commercial code and DOA may grant a security interest rather than DFI.
Municipalities. Authorize the use of state master leases for municipalities and create an appropriation to expend monies received from municipalities to make state master lease payments. Provide that use of a master lease by a municipality would be restricted to obtaining property or services related to public safety functions of the municipality. Require that when DOA uses a master lease on behalf of a municipality, the Department is required to enter into an installment sales contract with the municipality to obtain any property or service. Specify that the municipality shall issue a general obligation promissory note to DOA as security for the property or services obtained under the master lease. In addition, stipulate that a state agency's ability to use a master lease may not be dependent upon payment by a municipality unless the obligation of the municipality constitutes a general obligation.
The master lease program cannot currently be used to finance municipal purchases.
[Bill Sections: 93 thru 101, 515 and 2819 thru 2822]
3. FINANCING OF ENERGY CONSERVATION CONSTRUCTION PROJECTS
Governor: Modify current law regarding DOA's energy conservation audits and construction projects program to newly allow construction work under this program to be initially financed by the state.
Under current law, DOA may contract with a qualified contractor for the conduct of an energy conservation audit to be performed at any state-owned building, structure or facility. After the audit, if DOA believes that projected potential savings from any proposed energy conservation construction project would be sufficient to enable recovery of the costs of the construction within a reasonable period of time, DOA may contract with the audit contractor to undertake the proposed construction work. The contract must require that the contractor undertake the construction work at its own expense. DOA may then make payments to the contractor for the construction work from the fuel and utility costs appropriation in the respective agency as the projected energy savings are realized.
Under the Governor's proposal, the state would be able to directly finance the initial construction work. If the state chooses to do so, the state would also be newly authorized to finance any portion of the construction work using master lease financing. Further, for any project for which the state provides initial financing, DOA would be required to recover from the contractor any amount paid by the state to the contractor that is greater than the amount of savings realized by the state from the project within the reasonable period of time identified in the contract. The proposed language would also require that DOA, in its required annual report on construction projects contracted for under this program, include information on amounts of money due from contractors under this proposed change in how energy savings realized would be used. Finally, the bill would provide that if master lease financing is used to pay for any energy conservation construction projects, payments under the master lease could not be conditioned upon contractors making the above required payments to the state.
[Bill Sections: 102, 106 and 107]
4. MODIFICATIONS TO DOA REVIEW OF ANNEXATIONS IN POPULOUS COUNTIES
Governor: Extend from the current 20 days to 60 days the period of time during which DOA may review a proposed annexation of town territory that is contiguous to a city or village in a county with a population of at least 50,000 and have the opportunity to state that in DOA's opinion, the annexation is against the public interest.
Under current law, within five days of the publication of notice of intent to circulate an annexation petition to be filed with a city or village clerk in such a county, a legal description and a scale map of the proposed annexation must be sent to DOA. Within 20 days of receipt of these materials, DOA may mail to the clerks of the municipalities affected by the proposed annexation a notice that in its opinion the annexation is against the public interest. Within 10 days of mailing this notice, DOA must provide the reasons for its determination. This determination may be based on considerations of: (a) whether governmental services, including zoning, may clearly be better supplied by an adjacent municipality that has filed with the county circuit court a copy of a resolution adopted by a two-thirds vote of the municipality's governing body indicating a willingness to annex the area upon the filing of a valid annexation petition; or (b) the shape of the proposed annexation and the homogeneity of the territory with the annexing municipality and any other contiguous municipality.
Newly authorize DOA to refuse to accept the documents filed with it, if within five days of their receipt, the legal description or scale map is illegible, contains errors that prevent DOA from ascertaining the territory to be annexed or does not conform to generally accepted standards for the preparation of legal descriptions and scale maps. Provide that if the documents are refused by DOA, the annexation process may not continue. Stipulate that if the documents are resubmitted no later that 10 days after they were initially returned by DOA and the agency determines that they are legible, accurate and conform to generally accepted standards for legal descriptions and scale maps, the annexation process may proceed.
Specify that an annexation ordinance would become effective when it is recorded with the county register of deeds, rather than upon enactment, as currently provided. In conjunction with this change, delete a provision stating that a clerk's failure to file or record the necessary final documents relating to the annexation does not invalidate the annexation and that the clerk has a continuing duty to make such filings. There continues to be an on-going statutory obligation for the city or village clerk to record the ordinance with the county register of deeds. Clarify that one copy of all relevant annexation ordinances, certificates and plats must be filed with affected utility companies serving the annexed area. Currently, the documents that must be provided to the affected utilities are not explicitly referenced.
Specify that these modifications would first apply to annexation proceedings that commence with the filing of annexation petitions with a city or village clerk on and after the general effective date of the biennial budget act.
[Bill Sections: 1597 thru 1599 and 9358(1)]
5. PROCUREMENT -- EXEMPTION FROM BUYING FROM WORK CENTERS FOR THE SEVERELY HANDICAPPED
Governor: Authorize the Secretary of DOA to waive, at the request of an agency, the procurement requirements that provide preference to work centers for the employment of severely handicapped individuals if such a preference contravenes competitive requirements under federal law or regulations.
Under current law, procurement regulations governing agency purchases, or purchases made for an agency, require that preference be given to work centers for severely handicapped individuals. The State Use Board maintains a list of approved work centers and state agencies are directed to purchase goods produced from these work centers. The requirement does not apply to: (a) printing and stationary purchases; (b) goods produced by another state institution; (c) goods produced by prison industries; and (d) major procurements. Agencies may also obtain written certificates of exception from the State Use Board if all of the following conditions are met: (a) the work center cannot furnish the material, supply, equipment, or service in the time period specified in the order; and (b) the material, supply, equipment, or service is available from commercial sources in quantities and at an earlier time.
[Bill Sections: 90 and 91]
6. CREATION OF DUTIES DUE TO ELIMINATION OF EDUCATIONAL COMMUNICATIONS BOARD
Governor: Provide that if the Secretary of DOA would determine that the Federal Communications Commission (FCC) has approved the transfer of all broadcasting licenses held by the Educational Communications Board (ECB) and the University of Wisconsin Board of Regents to the proposed nonstock Educational Broadcasting Corporation, on and after the effective date of the last license transferred, the following would occur:
Emergency Weather Warning System Operation
1. DOA would be required to operate an emergency weather warning system which, under current law, is operated by the ECB;
2. An annual, program revenue appropriation would be created under DOA for the operation of the emergency weather warning system. The amounts in the schedule would be provided from funds received for the provision of state telecommunications and data processing services and sale of telecommunications and data processing inventory items primarily to state agencies. A technical correction would be necessary to achieve the intent of the bill. No funding would be provided in 1999-01; and
3. The unencumbered balance of the ECB program revenue appropriation for the operation of the emergency weather warning system would be transferred to the appropriation that would be created under DOA for the operation of this system. Under the bill, the total amount provided for this appropriation would be $71,800 PR annually.
Debt Service and Lease Appropriations and Bonding Authorization
1. Create a continuing, program revenue appropriation under DOA for lease payments for state-owned educational broadcasting facilities and equipment that would be received from the corporation for the purpose of the payment of principal and interest costs incurred in financing the acquisition, construction, development, enlargement or improvement of facilities approved by the Building Commission for operation by the ECB. No funding estimates would be provided for 1999-01.
2. Create a sum sufficient, GPR appropriation under DOA for the payment of principal and interest costs that would not be paid through lease payments described above, and that would be incurred in financing the acquisition, construction, development, enlargement or improvement of facilities approved by the Building Commission for operation by the ECB. Provide that no moneys may be encumbered unless the Secretary of DOA first determines that the FCC has approved the transfer of all broadcasting licenses held by the ECB and the UW Board of Regents to the Corporation.
3. Authorize general obligation bonding for DOA to acquire, construct, develop, enlarge or improve educational communications facilities. Provide that the state may contract public debt in an amount not to exceed $8,354,100 less any amount contracted on behalf of the former ECB before the effective date of the last license transferred.
See "Educational Broadcasting Corporation" for more information.
[Bill Sections: 63, 536 thru 538, 628, 638, 641 and 9101(8)]
7. BUDGET REQUEST SUBMITTAL DATE
Governor: Require that all agencies, other than the Legislature and Courts, submit their biennial budget requests to DOA and the Legislative Fiscal Bureau on the date specified by DOA. Under current law, the agencies are required to submit their requests by September 15 of each even-numbered year.
[Bill Section: 68 ]
Office of Justice Assistance
1. PENALTY ASSESSMENT REVENUE DISTRIBUTION
PR-REV $3,332,800
Governor: Make the following changes concerning the receipt and distribution of penalty assessment program revenues: (a) create a new appropriation under the Office of Justice Assistance (OJA) to receive all penalty assessment revenues; (b) delete certain existing penalty assessment appropriations and modify others that receive penalty assessment revenues to reflect this change; (c) move the statutory language concerning levy of penalty assessment from Chapter 165 (Department of Justice) to Chapter 757 (general provisions concerning courts of record, judges, attorneys and clerks); (d) provide that all appropriations funded from penalty assessment revenues be annual appropriations limited to the appropriated amounts; (e) provide that 90% of the unencumbered balances of certain penalty assessment appropriations on the effective date of the bill be transferred to the newly-created OJA penalty assessment receipts appropriation.; and (f) convert funding for the county-tribal law enforcement program under the Department of Justice (DOJ) from penalty assessment revenue to tribal gaming revenue provided under the recently completed state-tribal gaming compacts.
Whenever a court imposes a fine or forfeiture for a violation of state law or municipal or county ordinance (except for violations involving smoking in restricted areas, failing to properly designate smoking or nonsmoking areas, and nonmoving traffic violations or safety belt use), the court also imposes a penalty assessment of 23% of the total fine or forfeiture.
Under current law, penalty assessment revenues collected for violations of state law are deposited to the following program revenue appropriations on a percentage basis: (a) the Department of Justice's (DOJ) penalty assessment receipts appropriation for law enforcement training (49.09% of penalty assessment revenues); (b) DOJ's county-tribal receipts appropriation for the county-tribal law enforcement programs (4.55%); (c) OJA's anti-drug enforcement program--local appropriation which provides state match for the federal Byrne anti-drug law enforcement funds (22.73%); (d) the Department of Correction's (DOC) correctional officer training appropriation (9.09%); (e) the State Public Defender's (SPD) conferences and training appropriation (0.91%); (f) the Department of Public Instruction's (DPI) alcohol and other drug abuse (AODA) programs appropriation (8.48%); and (g) DPI's AODA--state operations appropriation (5.15%). All monies from the first two revenue-receiving appropriations and a portion of the monies from the next appropriation are transferred to fund a variety of programs, namely: (a) penalty assessment match for state programs and OJA administration under the federal anti-drug program; (b) state law enforcement training and administration, drug enforcement intelligence units and crime lab equipment in DOJ; and (c) youth diversion programs under DOC. Under the bill, all of these programs, with the exception of the county-tribal law enforcement program, would continue to be funded with penalty assessment revenues.
Under the bill, 90% of the unencumbered balances of the following penalty assessment appropriations would be transferred (on the effective date of the bill) to the newly-created OJA receipts appropriation. This transfer to OJA is estimated to result in revenue totaling $3,332,800 from the following appropriations: (a) DPI's AODA appropriations, $710,700 from the state operations appropriation and $1,116,800 from the program appropriation; (b) SPD's conferences and training appropriation, $63,400; and (c) DOJ's county tribal law enforcement and penalty assessment receipts appropriations, $71,900 and $1,370,000, respectively. The remaining 10% would be distributed as follows: (a) the monies would remain in the modified DPI and SPD appropriations; (b) the county-tribal balance would be transferred to the new county-tribal appropriation funded through tribal gaming revenue; and (c) DOJ's penalty assessment receipts balance would be transferred to the law enforcement training fund--state operations appropriation.
With the one-time funding deposited to the new OJA appropriation, the bill would fund the following additional programs with penalty assessment revenues, either directly appropriated or as part of the state match under OJA's federal anti-drug program: (a) in DOJ, a Wausau crime lab training and field response coordinator and additional funding for county victim/witness services reimbursements; (b) in DOC, information technology and AODA program funding; and (c) in BJIS, funding for the district attorney case management system. Details concerning these provisions can be found under the respective agencies.
[Bill Sections: 115, 252, 266, 360, 362, 367, 481 thru 484, 485 thru 489, 494, 526, 539, 540, 542, 543, 594, 686, 1576, 1577, 1609 thru 1611, 1613, 1614, 1616, 1617, 2044, 2290 thru 2298, 2301, 2753 thru 2761, 3066 thru 3072, 3076 thru 3079, 3085, 3094, 3097, 3203, 9101(12), 9230(1)&(2), 9238(1) and 9239(1)&(2)]
2. PENALTY ASSESSMENT STATE MATCH FUNDING FOR THE FEDERAL ANTI-DRUG ENFORCEMENT PROGRAM
PR - $3,646,400
Governor: Make the following changes to the penalty assessment state match funding for the federal Byrne anti-drug enforcement program: (a) delete $1,972,400 in 1999-00 and $1,674,000 in 2000-01 from the program revenue appropriations for penalty assessment state match; (b) change funding for those appropriations from 22.73% of penalty assessment revenues to the appropriated amounts, and modify the appropriation language to reflect this change; and (c) delete statutory language which requires local units of government to provide at least a 10% match for the anti-drug law enforcement monies they receive from OJA.
Under current law, penalty assessment revenues are used to match federal anti-drug law enforcement funds that are distributed to state agencies and local units of government and to OJA for administration. Under the bill, penalty assessment revenues would continue to fund these appropriations, but all penalty assessment revenues would initially be deposited to a newly-created appropriation under OJA. Under the bill, only the amounts appropriated for the state, local and administration match for the anti-drug enforcement program would be transferred from the new OJA revenue-receiving appropriation to the respective anti-drug enforcement penalty assessment match appropriations.
The funding reductions are related to: (a) -$1,183,800 annually in the appropriation which provides match monies for local programs to remove funding which, under the current appropriation structure, is appropriated in both OJA's local appropriation and also in the state and administration anti-drug enforcement program appropriations. (Currently, penalty assessment revenues are initially deposited into the local appropriation, then transferred to the state and administration appropriations); (b) -$736,600 in 1999-00 and -$735,500 in 2000-01 in the local appropriation, to reflect reestimates of required match amounts; (c) -$72,000 in 1999-00 and $225,300 in 2000-01 in the state appropriation, to reflect reestimates of required match amounts; and (d) $20,000 annually in the program administration appropriation, for administrative costs associated with a new federal program (the Juvenile Accountability Incentive Block Grant).
[Bill Sections: 539, 540, 542, 543 and 2294]
3. FEDERAL REESTIMATES
FED $2,366,000
Governor: Provide $1,698,500 in 1999-00 and $667,500 in 2000-01 to reestimate expenditure authority for subgrants to local governmental agencies, state agencies, private non-profit agencies and Native American Tribes under the following federal awards:
Program Adjusted Base 1999-00 2000-01
Juvenile Justice and Delinquency Prevention Act $1,114,200 $415,800 -$171,100
Title V Program 343,400 -58,800 -35,400
Violence Against Women Act 2,157,400 121,500 189,800
Local Law Enforcement Block Grant Award 423,000 187,000 187,000
Rural Domestic Violence Discretionary Award 131,200 257,800 233,700
Video Testimony Discretionary Award 0 16,700 0
Local Law Enforcement Block Grant
Training Award 0 47,300 47,300
Challenge Program 214,000 -10,200 -79,000
National Criminal History Improvement
Program Discretionary Award 1,811,400 -277,800 -1,186,500
Byrne Evaluation Discretionary Award 73,600 -12,500 -58,300
Residential Substance Abuse Treatment Award 691,600 100,800 -261,900
State Identification Systems Award 0 194,700 194,700
National Sex Offender Registry Award 0 881,700 881,700
Anti-drug Abuse Act Grants to Local
Government Agencies 6,155,400 -412,900 -414,000
Anti-drug Abuse Act Grants to State