(c) "Tobacco settlement revenues" means the right to receive settlement payments arising from or pursuant to the tobacco settlement agreement and all direct or indirect proceeds of that right.
(2) The secretary may sell for cash or other consideration the state's right to receive any of the payments under the tobacco settlement agreement.
(3) The secretary may organize one or more nonstock corporations under ch. 181 or limited liability companies under ch. 183 for any purpose related to the sale of the state's right to receive any of the payments under the tobacco settlement agreement and may take any action necessary to facilitate and complete the sale.
(3m) 1. If the secretary sells the state's right to receive any of the payments under the tobacco settlement agreement, the secretary shall require, as a condition of the sale, that the purchaser notify the secretary if any bonds or other obligations are issued that are secured by any of the payments and provide the secretary with all information on the distribution of the bond or obligation proceeds.
2. The secretary shall submit a report to the joint committee on finance that includes all of the information provided to the secretary by the purchaser under subd. 1.
(4) (a) Tobacco settlement revenues may not be deemed proceeds of any property which is not tobacco settlement revenues.
(b) Except as otherwise provided in this subsection, the creation, perfection, and enforcement of security interests in tobacco settlement revenues are governed by ch. 409. Notwithstanding ch. 409, with regard to creating, perfecting, and enforcing a valid security interest in tobacco settlement revenues:
1. If this state or the Wisconsin health and educational facilities authority is the debtor in the transaction, the proper place to file the required financing statement to perfect the security interest is the department of financial institutions.
2. The required financing statement shall include a description of collateral that describes the collateral as general intangibles consisting of the right to receive settlement payments arising from or pursuant to the tobacco settlement agreement and all proceeds of that right. The required financing statement may include any additional description of collateral that is legally sufficient under the laws of this state.
3. The tobacco settlement revenues are general intangibles for purposes of ch. 409.
4. A security interest perfected under this paragraph is enforceable against the debtor, any assignee or grantee, and all third parties, including creditors under any lien obtained by judicial proceedings, subject only to the rights of any third parties holding security interests in the tobacco settlement revenues previously perfected under this paragraph. Unless the applicable security agreement provides otherwise, a perfected security interest in the tobacco settlement revenues is a continuously perfected security interest in all tobacco settlement revenues existing on the date of the agreement or arising after the date of the agreement. A security interest perfected under this paragraph has priority over any other lien created by operation of law or otherwise, which subsequently attaches to the tobacco settlement revenues.
5. The priority of a security interest created under this paragraph is not affected by the commingling of proceeds arising from the tobacco settlement revenues with other amounts.
(c) The sale, assignment, and transfer of tobacco settlement revenues are governed by this paragraph. All of the following apply to a sale, assignment, or transfer under this paragraph:
1. The sale, assignment, or transfer is an absolute transfer of, and not a pledge of or secured transaction relating to, the seller's right, title, and interest in, to, and under the tobacco settlement revenues, if the documents governing the transaction expressly state that the transaction is a sale or other absolute transfer. After such a transaction, the tobacco settlement revenues are not subject to any claims of the seller or the seller's creditors, other than creditors holding a prior security interest in the tobacco settlement revenues perfected under par. (b).
2. The characterization of the sale, assignment, or transfer as an absolute transfer under subd. 1. and the corresponding characterization of the purchaser's property interest is not affected by any of the following factors:
a. Commingling of amounts arising with respect to the tobacco settlement revenues with other amounts.
b. The retention by the seller of a partial or residual interest, including an equity interest, in the tobacco settlement revenues, whether direct or indirect, or whether subordinate or otherwise.
c. The sale, assignment, or transfer of only a portion of the tobacco settlement revenues or an undivided interest in the tobacco settlement revenues.
d. Any recourse that the purchaser or its assignees may have against the seller.
e. Whether the seller is responsible for collecting payments due under the tobacco settlement revenues or for otherwise enforcing any of the tobacco settlement revenues or retains legal title to the tobacco settlement revenues for the purpose of these collection activities.
f. The treatment of the sale, assignment, or transfer for tax purposes.
3. The sale, assignment, or transfer is perfected automatically as against third parties, including any third parties with liens created by operation of law or otherwise, upon attachment under ch. 409.
4. Nothing in this subsection precludes consideration of the factors listed in subd. 2. a. to e. in determining whether the sale, assignment, or transfer is a sale for tax purposes. The characterization of the sale, assignment, or transfer as an absolute transfer under subd. 1. may not be considered in determining whether the sale, assignment, or transfer is a sale for tax purposes.
(5) If the secretary sells the state's right to receive any of the payments under the tobacco settlement agreement, the state pledges to and agrees with any purchaser or subsequent transferee of the state's right to receive any of the payments under the tobacco settlement agreement that the state will not limit or alter its powers to fulfill the terms of the tobacco settlement agreement, nor will the state in any way impair the rights and remedies provided under the tobacco settlement agreement. The state also pledges to and agrees with any purchaser or subsequent transferee of the state's right to receive any of the payments under the tobacco settlement agreement that the state will pay all costs and expenses in connection with any action or proceeding brought by or on behalf of the purchaser or any subsequent transferee related to the state's not fulfilling the terms of the tobacco settlement agreement. The secretary may include this pledge and agreement of the state in any contract that is entered into by the secretary under this section.
(6) If the secretary sells the state's right to receive any of the payments under the tobacco settlement agreement, the state pledges to and agrees with any purchaser or subsequent transferee of the state's right to receive any of the payments under the tobacco settlement agreement that the state will not limit or alter the powers of the secretary under this section until any contract that is entered into under this section is fully performed, unless adequate provision is made by law for the protection of the rights and remedies of the purchaser or any subsequent transferee under the contract. The secretary may include this pledge and agreement of the state in any contract that is entered into by the secretary under this section.
(8) This subsection and subs. (8m) and (9) shall govern all civil claims, suits, proceedings, and actions brought against the state relating to the sale of the state's right to receive any of the payments under the tobacco settlement agreement. If the state fails to comply with this section or the terms of any agreement relating to the sale of the state's right to receive any of the payments under the tobacco settlement agreement, an action to compel compliance may be commenced against the state.
(8m) If the recovery of a money judgment against the state is necessary to give the plaintiff in an action under sub. (8) complete relief, a claim for the money damages may be joined with the claim commenced under sub. (8).
(9) Sections 16.007, 16.53, and 775.01 do not apply to claims against the state under sub. (8) or (8m). If there is a final judgment against the state in such an action, the judgment shall be paid as provided in s. 775.04 together with interest at the rate of 10% per year from the date such payment was judged to have been due until the date of payment of the judgment.
16,267
Section
267. 16.70 (2) of the statutes is amended to read:
16.70 (2) "Authority" means a body created under ch. 231, 232, 233 or, 234, 235, or 237.
16,267m
Section 267m. 16.70 (3) of the statutes is amended to read:
16.70 (3) "Contractual services" includes all services, materials to be furnished by a service provider in connection with services, and any limited trades work involving less than $20,000 $30,000 to be done for or furnished to the state or any agency.
16,268
Section
268. 16.70 (4m) of the statutes is created to read:
16.70 (4m) "Information technology" has the meaning given in s. 22.01 (6).
16,269
Section
269. 16.70 (15) of the statutes is created to read:
16.70 (15) "Telecommunications" has the meaning given in s. 22.01 (10).
16,270
Section 270. 16.701 of the statutes is renumbered 16.701 (1).
16,271
Section 271. 16.701 (2) of the statutes is created to read:
16.701 (2) The department may permit prospective vendors to provide product or service information through the service established under sub. (1). The department may prescribe fees or establish fees through a competitive process for the use of the service under this subsection.
16,272
Section 272. 16.7015 of the statutes is amended to read:
16.7015 Bidders list. The department
or any agency to which the department delegates purchasing authority under s. 16.71 (1) may maintain a bidders list which
. Any agency to which the department delegates purchasing authority under s. 16.71 (1) may maintain a bidders list if authorized by the delegation. The bidders list shall include the names and addresses of all persons who request to be notified of bids or competitive sealed proposals, excluding those to be awarded under s. 16.75 (1) (c) or (2m) (c), that are solicited by the department or other agency for the procurement of materials, supplies, equipment or contractual services under this subchapter. Any list maintained by the department may include the names and addresses of any person who requests to be notified of bids or competitive sealed proposals to be
that are solicited by any agency. The department or other agency shall notify each person on its list of all requests for bids or competitive sealed proposals that are solicited by the department or other agency. The department or other agency may remove any person from its list for cause.
16,273
Section
273. 16.71 (1) of the statutes is amended to read:
16.71 (1) Except as otherwise required under this section and s. 16.78 or as authorized in s. 16.74, the department shall purchase and may delegate to special designated agents the authority to purchase all necessary materials, supplies, equipment, all other permanent personal property and miscellaneous capital, and contractual services and all other expense of a consumable nature for all agencies. In making any delegation, the department shall require the agent to adhere to all requirements imposed upon the department in making purchases under this subchapter. All materials, services and other things and expense furnished to any agency and interest paid under s. 16.528 shall be charged to the proper appropriation of the agency to which furnished.
16,274
Section
274. 16.71 (1m) of the statutes is created to read:
16.71 (1m) The department shall not delegate to any executive branch agency, other than the board of regents of the University of Wisconsin System, the authority to enter into any contract for materials, supplies, equipment, or contractual services relating to information technology or telecommunications prior to review and approval of the contract by the chief information officer. No executive branch agency, other than the board of regents of the University of Wisconsin System, may enter into any such contract without review and approval of the contract by the chief information officer.
16,275
Section
275. 16.71 (2m) of the statutes is created to read:
16.71 (2m) The department of administration shall delegate authority to make all purchases for the department of electronic government to the department of electronic government. This delegation may not be withdrawn, but the department of electronic government may elect to make any purchase through the department of administration.
16,275m
Section 275m. 16.71 (2s) of the statutes is created to read:
16.71 (2s) The department shall delegate authority to the ethics board to make purchases authorized under s. 22.03 (2) (n).
16,276
Section
276. 16.71 (4) of the statutes is amended to read:
16.71 (4) The With the approval of the department of electronic government, the department of administration shall delegate authority to the technology for educational achievement in Wisconsin board to make purchases of educational technology equipment for use by school districts, cooperative educational service agencies and public educational institutions in this state, upon request of the board.
16,277
Section
277. 16.71 (6) of the statutes is created to read:
16.71 (6) The department may assess any agency or municipality to which it provides services under this subchapter for the cost of the services provided to the agency or municipality. The department may also identify savings that the department determines to have been realized by an agency to which it provides services under this subchapter and may assess the agency for not more than the amount of the savings identified by the department.
16,278
Section
278. 16.72 (2) (a) of the statutes is amended to read:
16.72 (2) (a) The department of administration shall prepare standard specifications, as far as possible, for all state purchases. By "standard specifications" is meant a specification, either chemical or physical or both, prepared to describe in detail the article which the state desires to purchase, and trade names shall not be used. On the formulation, adoption and modification of any standard specifications, the department of administration shall also seek and be accorded without cost, the assistance, advice and cooperation of other agencies and officers. Each specification adopted for any commodity shall, insofar as possible, satisfy the requirements of any and all agencies which use it in common. Any specifications for the purchase of materials, supplies, equipment, or contractual services for information technology or telecommunications purposes are subject to the approval of the chief information officer.
16,279
Section
279. 16.72 (2) (b) of the statutes is amended to read:
16.72 (2) (b) Except as provided in par. (a) and ss. 16.25 (4) (b), 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.
16,280
Section
280. 16.72 (2) (d) of the statutes is amended to read:
16.72 (2) (d) Except as permitted in s. ss. 16.75 (6) (am) and 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).
16,281
Section
281. 16.72 (4) (a) of the statutes is amended to read:
16.72 (4) (a) Except as provided in s.
ss. 16.71 and 16.74 or as otherwise provided in this subchapter and the rules promulgated under s. 16.74 and this subchapter, all supplies, materials, equipment and contractual services shall be purchased for and furnished to any agency only upon requisition to the department. The department shall prescribe the form, contents, number and disposition of requisitions and shall promulgate rules as to time and manner of submitting such requisitions for processing. No agency or officer may engage any person to perform contractual services without the specific prior approval of the department for each such engagement. Purchases of supplies, materials, equipment or contractual services by the department of electronic government, the legislature, the courts or legislative service or judicial branch agencies do not require approval under this paragraph.
16,282
Section
282. 16.72 (8) of the statutes is amended to read:
16.72 (8) The division of information technology services of the department may purchase educational technology materials, supplies, equipment or contractual services from orders placed with the department by the technology for educational achievement in Wisconsin board on behalf of school districts, cooperative educational service agencies, technical college districts and the board of regents of the University of Wisconsin System.
16,282m
Section 282m. 16.73 (6) of the statutes is created to read:
16.73 (6) The department shall administer a program to facilitate purchases of large equipment that is needed by municipalities. The department shall purchase large equipment as a part of the program. The department may, by rule, prescribe requirements for participation in the program and for participation in specific purchases under the program.
16,285
Section
285. 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, 16.964 (8), 50.05 (7) (f),
and 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.
16,286
Section 286. 16.75 (1) (a) 3. of the statutes is amended to read:
16.75 (1) (a) 3. Bids may be received only in accordance with such specifications as are adopted by the department as provided in this subsection. Any or all bids may be rejected. Each Whenever sealed bids are invited, each bid, with the name of the bidder, shall be entered on a record, and each record with the successful bid indicated shall, after the award or letting of the contract, be opened to public inspection. Where a low bid is rejected, a complete written record shall be compiled and filed, giving the reason in full for such action. Any waiver of sealed, advertised bids as provided in sub. (2m) or (6) shall be entered on a record kept by the department and open to public inspection.
16,287
Section 287. 16.75 (1) (b) of the statutes is amended to read:
16.75 (1) (b) When the estimated cost exceeds $25,000, the department shall invite bids to be submitted. The department shall either solicit sealed bids to be opened publicly at a specified date and time, or shall solicit bidding by auction to be conducted electronically at a specified date and time. Whenever bids are invited, due notice inviting bids shall be published as a class 2 notice, under ch. 985, and the bids or posted on the Internet at a site determined or approved by the department. The bid opening or auction shall not be opened until occur at least 7 days from after the date of the last day of publication insertion of the notice or at least 7 days after the date of posting on the Internet. The official advertisement notice shall specify whether sealed bids are invited or bids will be accepted by auction, and shall give a clear description of the materials, supplies, equipment, or service contractual services to be purchased, the amount of the any bond, share draft, check
, or other draft to be submitted as surety with the bid or prior to the auction, and the date of and time that the public opening or the auction will be held.
16,288
Section 288. 16.75 (1) (cm) of the statutes is created to read:
16.75 (1) (cm) If bids are solicited by auction, the award may be made in accordance with simplified competitive procedures established by the department for such transactions.
16,289
Section 289. 16.75 (2) (a) of the statutes is amended to read:
16.75 (2) (a) When the department of administration believes that it is to the best interests of the state to purchase certain patented or proprietary articles, other than printing and stationery, it may purchase said articles without the usual statutory procedure. All but all equipment shall be purchased from the lowest and best bidder as determined by the bids and a comparison of the
any detailed specifications submitted with the bids, and after due advertisement as hereinbefore provided notice, whenever notice is required under this section. Where the low bid or bids are rejected, a complete written record shall be compiled and filed, giving the reasons in full for such action.
16,290
Section 290. 16.75 (2m) (b) of the statutes is amended to read:
16.75 (2m) (b) When the estimated cost exceeds $25,000, the department shall publish a class 2 notice under ch. ch 985 inviting may invite competitive sealed proposals by publishing a class 2 notice under ch. 985 or by posting notice on the Internet at a site determined or approved by the department. The advertisement
notice shall describe the materials, supplies, equipment, or service contractual services to be purchased, the intent to solicit make the procurement by solicitation of proposals rather than by solicitation of bids, any requirement for surety and the date the proposals will be opened, which shall be at least 7 days after the date of the last insertion of the notice or at least 7 days after the date of posting on the Internet.
16,291
Section
291. 16.75 (3t) (a) of the statutes is amended to read:
16.75 (3t) (a) In this subsection, "form" has the meaning given under s. 16.97 22.01 (5p).
16,292
Section
292. 16.75 (3t) (c) (intro.) of the statutes is amended to read:
16.75 (3t) (c) (intro.) The department of corrections shall periodically provide to the department of administration a current list of all materials, supplies, equipment or contractual services, excluding commodities, that are supplied by prison industries, as created under s. 303.01. The department of administration shall distribute the list to all designated purchasing agents under s. 16.71 (1). Prior Except as otherwise provided in sub. (6) (am), prior to seeking bids or competitive sealed proposals with respect to the purchase of any materials, supplies, equipment or contractual services enumerated in the list, the department of administration or any other designated purchasing agent under s. 16.71 (1) shall offer prison industries the opportunity to supply the materials, supplies, equipment or contractual services if the department of corrections is able to provide them at a price comparable to one which may be obtained through competitive bidding or competitive sealed proposals and is able to conform to the specifications, provided the specifications are written in accordance with s. 16.72 (2) (d). If the department of administration or other purchasing agent is unable to determine whether the price of prison industries is comparable, it may solicit bids or competitive proposals before awarding the order or contract. This paragraph does not apply to the printing of the following forms:
16,293
Section
293. 16.75 (6) (am) 1. of the statutes is repealed.
16,294
Section
294. 16.75 (6) (am) 2. of the statutes is renumbered 16.75 (6) (am) and amended to read:
16.75 (6) (am) Subsections (1) and (3t) do not apply to major procurements by the department of electronic government. Annually not later than October 1, the department of electronic government shall report to the department of administration, in the form specified by the secretary, concerning all procurements by the department of electronic government during the preceding fiscal year that were not made in accordance with the requirements of subs. (1) and (3t).
16,295
Section 295. 16.75 (6) (c) of the statutes is amended to read:
16.75 (6) (c) If the secretary determines that it is in the best interest of this state to do so, he or she may, with the approval of the governor, waive the requirements of subs. (1) to (5) and may purchase supplies, material, equipment, or contractual services, other than printing and stationery, from a private source other than a source specified in par. (b). Except as provided in sub. (2g) (c), if the cost of the purchase is expected to exceed $25,000, the department shall first publish a class 2 notice under ch. 985 or post a notice on the Internet at the site determined or approved by the department under sub. (1) (b) describing the materials, supplies, equipment, or contractual services to be purchased, stating the intent to make the purchase from a private source without soliciting bids or competitive sealed proposals and stating the date on which the contract or purchase order will be awarded. The date of the award shall be at least 7 days after the date of the last insertion or the date of posting on the Internet.
16,296
Section
296. 16.751 (1) of the statutes is repealed.
16,297
Section
297. 16.751 (2) of the statutes is renumbered 16.751 and amended to read:
16.751 Information technology purchases by investment board. The requirements of ss. 16.72 (2) (b) and (d) and 16.75 (1) (a) 1. and (2m) (g) do not apply to procurements authorized to be made by the investment board under s. 16.78 (1) for information technology purposes.