SB55-SSA1,54,1917 2. The secretary shall submit a report to the joint committee on finance that
18includes all of the information provided to the secretary by the purchaser under subd.
191.
SB55-SSA1,54,21 20(4) (a) Tobacco settlement revenues may not be deemed proceeds of any
21property which is not tobacco settlement revenues.
SB55-SSA1,54,2522 (b) Except as otherwise provided in this subsection, the creation, perfection,
23and enforcement of security interests in tobacco settlement revenues are governed
24by ch. 409. Notwithstanding ch. 409, with regard to creating, perfecting, and
25enforcing a valid security interest in tobacco settlement revenues:
SB55-SSA1,55,3
11. If this state or the Wisconsin health and educational facilities authority is
2the debtor in the transaction, the proper place to file the required financing
3statement to perfect the security interest is the department of financial institutions.
SB55-SSA1,55,94 2. The required financing statement shall include a description of collateral
5that describes the collateral as general intangibles consisting of the right to receive
6settlement payments arising from or pursuant to the tobacco settlement agreement
7and all proceeds of that right. The required financing statement may include any
8additional description of collateral that is legally sufficient under the laws of this
9state.
SB55-SSA1,55,1110 3. The tobacco settlement revenues are general intangibles for purposes of ch.
11409.
SB55-SSA1,55,2112 4. A security interest perfected under this paragraph is enforceable against the
13debtor, any assignee or grantee, and all third parties, including creditors under any
14lien obtained by judicial proceedings, subject only to the rights of any third parties
15holding security interests in the tobacco settlement revenues previously perfected
16under this paragraph. Unless the applicable security agreement provides otherwise,
17a perfected security interest in the tobacco settlement revenues is a continuously
18perfected security interest in all tobacco settlement revenues existing on the date of
19the agreement or arising after the date of the agreement. A security interest
20perfected under this paragraph has priority over any other lien created by operation
21of law or otherwise, which subsequently attaches to the tobacco settlement revenues.
SB55-SSA1,55,2422 5. The priority of a security interest created under this paragraph is not
23affected by the commingling of proceeds arising from the tobacco settlement
24revenues with other amounts.
SB55-SSA1,56,3
1(c) The sale, assignment, and transfer of tobacco settlement revenues are
2governed by this paragraph. All of the following apply to a sale, assignment, or
3transfer under this paragraph:
SB55-SSA1,56,104 1. The sale, assignment, or transfer is an absolute transfer of, and not a pledge
5of or secured transaction relating to, the seller's right, title, and interest in, to, and
6under the tobacco settlement revenues, if the documents governing the transaction
7expressly state that the transaction is a sale or other absolute transfer. After such
8a transaction, the tobacco settlement revenues are not subject to any claims of the
9seller or the seller's creditors, other than creditors holding a prior security interest
10in the tobacco settlement revenues perfected under par. (b).
SB55-SSA1,56,1311 2. The characterization of the sale, assignment, or transfer as an absolute
12transfer under subd. 1. and the corresponding characterization of the purchaser's
13property interest is not affected by any of the following factors:
SB55-SSA1,56,1514 a. Commingling of amounts arising with respect to the tobacco settlement
15revenues with other amounts.
SB55-SSA1,56,1816 b. The retention by the seller of a partial or residual interest, including an
17equity interest, in the tobacco settlement revenues, whether direct or indirect, or
18whether subordinate or otherwise.
SB55-SSA1,56,2019 c. The sale, assignment, or transfer of only a portion of the tobacco settlement
20revenues or an undivided interest in the tobacco settlement revenues.
SB55-SSA1,56,2121 d. Any recourse that the purchaser or its assignees may have against the seller.
SB55-SSA1,56,2522 e. Whether the seller is responsible for collecting payments due under the
23tobacco settlement revenues or for otherwise enforcing any of the tobacco settlement
24revenues or retains legal title to the tobacco settlement revenues for the purpose of
25these collection activities.
SB55-SSA1,57,1
1f. The treatment of the sale, assignment, or transfer for tax purposes.
SB55-SSA1,57,42 3. The sale, assignment, or transfer is perfected automatically as against third
3parties, including any third parties with liens created by operation of law or
4otherwise, upon attachment under ch. 409.
SB55-SSA1,57,95 4. Nothing in this subsection precludes consideration of the factors listed in
6subd. 2. a. to e. in determining whether the sale, assignment, or transfer is a sale for
7tax purposes. The characterization of the sale, assignment, or transfer as an
8absolute transfer under subd. 1. may not be considered in determining whether the
9sale, assignment, or transfer is a sale for tax purposes.
SB55-SSA1,57,22 10(5) If the secretary sells the state's right to receive any of the payments under
11the tobacco settlement agreement, the state pledges to and agrees with any
12purchaser or subsequent transferee of the state's right to receive any of the payments
13under the tobacco settlement agreement that the state will not limit or alter its
14powers to fulfill the terms of the tobacco settlement agreement, nor will the state in
15any way impair the rights and remedies provided under the tobacco settlement
16agreement. The state also pledges to and agrees with any purchaser or subsequent
17transferee of the state's right to receive any of the payments under the tobacco
18settlement agreement that the state will pay all costs and expenses in connection
19with any action or proceeding brought by or on behalf of the purchaser or any
20subsequent transferee related to the state's not fulfilling the terms of the tobacco
21settlement agreement. The secretary may include this pledge and agreement of the
22state in any contract that is entered into by the secretary under this section.
SB55-SSA1,58,6 23(6) If the secretary sells the state's right to receive any of the payments under
24the tobacco settlement agreement, the state pledges to and agrees with any
25purchaser or subsequent transferee of the state's right to receive any of the payments

1under the tobacco settlement agreement that the state will not limit or alter the
2powers of the secretary under this section until any contract that is entered into
3under this section is fully performed, unless adequate provision is made by law for
4the protection of the rights and remedies of the purchaser or any subsequent
5transferee under the contract. The secretary may include this pledge and agreement
6of the state in any contract that is entered into by the secretary under this section.
SB55-SSA1,58,12 7(8) This subsection and subs. (8m) and (9) shall govern all civil claims, suits,
8proceedings, and actions brought against the state relating to the sale of the state's
9right to receive any of the payments under the tobacco settlement agreement. If the
10state fails to comply with this section or the terms of any agreement relating to the
11sale of the state's right to receive any of the payments under the tobacco settlement
12agreement, an action to compel compliance may be commenced against the state.
SB55-SSA1,58,15 13(8m) If the recovery of a money judgment against the state is necessary to give
14the plaintiff in an action under sub. (8) complete relief, a claim for the money
15damages may be joined with the claim commenced under sub. (8).
SB55-SSA1,58,20 16(9) Sections 16.007, 16.53, and 775.01 do not apply to claims against the state
17under sub. (8) or (8m). If there is a final judgment against the state in such an action,
18the judgment shall be paid as provided in s. 775.04 together with interest at the rate
19of 10% per year from the date such payment was judged to have been due until the
20date of payment of the judgment.
SB55-SSA1, s. 267 21Section 267. 16.70 (2) of the statutes is amended to read:
SB55-SSA1,58,2322 16.70 (2) "Authority" means a body created under ch. 231, 232, 233 or, 234, 235,
23or 237
.
SB55-SSA1, s. 267m 24Section 267m. 16.70 (3) of the statutes is amended to read:
SB55-SSA1,59,4
116.70 (3) "Contractual services" includes all services, materials to be furnished
2by a service provider in connection with services, and any limited trades work
3involving less than $20,000 $30,000 to be done for or furnished to the state or any
4agency.
SB55-SSA1, s. 268 5Section 268. 16.70 (4m) of the statutes is created to read:
SB55-SSA1,59,66 16.70 (4m) "Information technology" has the meaning given in s. 22.01 (6).
SB55-SSA1, s. 269 7Section 269. 16.70 (15) of the statutes is created to read:
SB55-SSA1,59,88 16.70 (15) "Telecommunications" has the meaning given in s. 22.01 (10).
SB55-SSA1, s. 273 9Section 273. 16.71 (1) of the statutes is amended to read:
SB55-SSA1,59,1910 16.71 (1) Except as otherwise required under this section and s. 16.78 or as
11authorized in s. 16.74, the department shall purchase and may delegate to special
12designated agents the authority to purchase all necessary materials, supplies,
13equipment, all other permanent personal property and miscellaneous capital, and
14contractual services and all other expense of a consumable nature for all agencies.
15In making any delegation, the department shall require the agent to adhere to all
16requirements imposed upon the department in making purchases under this
17subchapter. All materials, services and other things and expense furnished to any
18agency and interest paid under s. 16.528 shall be charged to the proper appropriation
19of the agency to which furnished.
SB55-SSA1, s. 274 20Section 274. 16.71 (1m) of the statutes is created to read:
SB55-SSA1,60,321 16.71 (1m) The department shall not delegate to any executive branch agency,
22other than the board of regents of the University of Wisconsin System, the authority
23to enter into any contract for materials, supplies, equipment, or contractual services
24relating to information technology or telecommunications prior to review and
25approval of the contract by the chief information officer. No executive branch agency,

1other than the board of regents of the University of Wisconsin System, may enter into
2any such contract without review and approval of the contract by the chief
3information officer.
SB55-SSA1, s. 275 4Section 275. 16.71 (2m) of the statutes is created to read:
SB55-SSA1,60,95 16.71 (2m) The department of administration shall delegate authority to make
6all purchases for the department of electronic government to the department of
7electronic government. This delegation may not be withdrawn, but the department
8of electronic government may elect to make any purchase through the department
9of administration.
SB55-SSA1, s. 275m 10Section 275m. 16.71 (2s) of the statutes is created to read:
SB55-SSA1,60,1211 16.71 (2s) The department shall delegate authority to the ethics board to make
12purchases authorized under s. 22.03 (2) (n).
SB55-SSA1, s. 276 13Section 276. 16.71 (4) of the statutes is amended to read:
SB55-SSA1,60,1814 16.71 (4) The With the approval of the department of electronic government,
15the
department of administration shall delegate authority to the technology for
16educational achievement in Wisconsin board to make purchases of educational
17technology equipment for use by school districts, cooperative educational service
18agencies and public educational institutions in this state, upon request of the board.
SB55-SSA1, s. 277 19Section 277. 16.71 (6) of the statutes is created to read:
SB55-SSA1,60,2520 16.71 (6) The department may assess any agency or municipality to which it
21provides services under this subchapter for the cost of the services provided to the
22agency or municipality. The department may also identify savings that the
23department determines to have been realized by an agency to which it provides
24services under this subchapter and may assess the agency for not more than the
25amount of the savings identified by the department.
SB55-SSA1, s. 278
1Section 278. 16.72 (2) (a) of the statutes is amended to read:
SB55-SSA1,61,132 16.72 (2) (a) The department of administration shall prepare standard
3specifications, as far as possible, for all state purchases. By "standard specifications"
4is meant a specification, either chemical or physical or both, prepared to describe in
5detail the article which the state desires to purchase, and trade names shall not be
6used. On the formulation, adoption and modification of any standard specifications,
7the department of administration shall also seek and be accorded without cost, the
8assistance, advice and cooperation of other agencies and officers. Each specification
9adopted for any commodity shall, insofar as possible, satisfy the requirements of any
10and all agencies which use it in common. Any specifications for the purchase of
11materials, supplies, equipment, or contractual services for information technology
12or telecommunications purposes are subject to the approval of the chief information
13officer.
SB55-SSA1, s. 279 14Section 279. 16.72 (2) (b) of the statutes is amended to read:
SB55-SSA1,61,2415 16.72 (2) (b) Except as provided in par. (a) and ss. 16.25 (4) (b), 16.751 and
16565.25 (2) (a) 4., the department shall prepare or review specifications for all
17materials, supplies, equipment, other permanent personal property and contractual
18services not purchased under standard specifications. Such "nonstandard
19specifications" may be generic or performance specifications, or both, prepared to
20describe in detail the article which the state desires to purchase either by its physical
21properties or programmatic utility. When appropriate for such nonstandard items
22or services, trade names may be used to identify what the state requires, but
23wherever possible 2 or more trade names shall be designated and the trade name of
24any Wisconsin producer, distributor or supplier shall appear first.
SB55-SSA1, s. 280 25Section 280. 16.72 (2) (d) of the statutes is amended to read:
SB55-SSA1,62,5
116.72 (2) (d) Except as permitted in s. ss. 16.75 (6) (am) and 16.751, to the extent
2possible, the department and any other designated purchasing agent under s. 16.71
3(1) shall write specifications for the purchase of materials, supplies, commodities,
4equipment and contractual services so as to permit their purchase from prison
5industries, as created under s. 303.01 (1).
SB55-SSA1, s. 281 6Section 281. 16.72 (4) (a) of the statutes is amended to read:
SB55-SSA1,62,187 16.72 (4) (a) Except as provided in s. ss. 16.71 and 16.74 or as otherwise
8provided in this subchapter and the rules promulgated under s. 16.74 and this
9subchapter, all supplies, materials, equipment and contractual services shall be
10purchased for and furnished to any agency only upon requisition to the department.
11The department shall prescribe the form, contents, number and disposition of
12requisitions and shall promulgate rules as to time and manner of submitting such
13requisitions for processing. No agency or officer may engage any person to perform
14contractual services without the specific prior approval of the department for each
15such engagement. Purchases of supplies, materials, equipment or contractual
16services by the department of electronic government, the legislature, the courts or
17legislative service or judicial branch agencies do not require approval under this
18paragraph.
SB55-SSA1, s. 282 19Section 282. 16.72 (8) of the statutes is amended to read:
SB55-SSA1,62,2520 16.72 (8) The division of information technology services of the department
21may purchase educational technology materials, supplies, equipment or contractual
22services from orders placed with the department by the technology for educational
23achievement in Wisconsin board on behalf of school districts, cooperative educational
24service agencies, technical college districts and the board of regents of the University
25of Wisconsin System.
SB55-SSA1, s. 285
1Section 285. 16.75 (1) (a) 1. of the statutes is amended to read:
SB55-SSA1,63,102 16.75 (1) (a) 1. All orders awarded or contracts made by the department for all
3materials, supplies, equipment, and contractual services to be provided to any
4agency, except as otherwise provided in par. (c) and subs. (2), (2g), (2m), (3m), (3t),
5(6), (7), (8), and (9) and ss. 16.73 (4) (a), 16.751, 16.754, 16.964 (8), 50.05 (7) (f), and
6287.15 (7) and 301.265, shall be awarded to the lowest responsible bidder, taking into
7consideration life cycle cost estimates under sub. (1m), when appropriate, the
8location of the agency, the quantities of the articles to be supplied, their conformity
9with the specifications, and the purposes for which they are required and the date
10of delivery.
SB55-SSA1, s. 291 11Section 291. 16.75 (3t) (a) of the statutes is amended to read:
SB55-SSA1,63,1312 16.75 (3t) (a) In this subsection, "form" has the meaning given under s. 16.97
1322.01 (5p).
SB55-SSA1, s. 292 14Section 292. 16.75 (3t) (c) (intro.) of the statutes is amended to read:
SB55-SSA1,64,615 16.75 (3t) (c) (intro.) The department of corrections shall periodically provide
16to the department of administration a current list of all materials, supplies,
17equipment or contractual services, excluding commodities, that are supplied by
18prison industries, as created under s. 303.01. The department of administration
19shall distribute the list to all designated purchasing agents under s. 16.71 (1). Prior
20Except as otherwise provided in sub. (6) (am), prior to seeking bids or competitive
21sealed proposals with respect to the purchase of any materials, supplies, equipment
22or contractual services enumerated in the list, the department of administration or
23any other designated purchasing agent under s. 16.71 (1) shall offer prison industries
24the opportunity to supply the materials, supplies, equipment or contractual services
25if the department of corrections is able to provide them at a price comparable to one

1which may be obtained through competitive bidding or competitive sealed proposals
2and is able to conform to the specifications, provided the specifications are written
3in accordance with s. 16.72 (2) (d). If the department of administration or other
4purchasing agent is unable to determine whether the price of prison industries is
5comparable, it may solicit bids or competitive proposals before awarding the order
6or contract. This paragraph does not apply to the printing of the following forms:
SB55-SSA1, s. 293 7Section 293. 16.75 (6) (am) 1. of the statutes is repealed.
SB55-SSA1, s. 294 8Section 294. 16.75 (6) (am) 2. of the statutes is renumbered 16.75 (6) (am) and
9amended to read:
SB55-SSA1,64,1510 16.75 (6) (am) Subsections (1) and (3t) do not apply to major procurements by
11the department of electronic government. Annually not later than October 1, the
12department of electronic government shall report to the department of
13administration, in the form specified by the secretary, concerning all procurements
14by the department of electronic government during the preceding fiscal year that
15were not made in accordance with the requirements of subs. (1) and (3t)
.
SB55-SSA1, s. 296 16Section 296. 16.751 (1) of the statutes is repealed.
SB55-SSA1, s. 297 17Section 297. 16.751 (2) of the statutes is renumbered 16.751 and amended to
18read:
SB55-SSA1,64,22 1916.751 Information technology purchases by investment board. The
20requirements of ss. 16.72 (2) (b) and (d) and 16.75 (1) (a) 1. and (2m) (g) do not apply
21to procurements authorized to be made by the investment board under s. 16.78 (1)
22for information technology purposes.
SB55-SSA1, s. 298 23Section 298. 16.752 (12) (i) of the statutes is amended to read:
SB55-SSA1,64,2524 16.752 (12) (i) Paragraph (a) does not apply to major procurements, as defined
25in s. 16.75 (6) (am)
by the department of electronic government.
SB55-SSA1, s. 299
1Section 299. 16.765 (1) of the statutes is amended to read:
SB55-SSA1,65,102 16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and
3Clinics Authority, the Fox River Navigational System Authority, and the Bradley
4Center Sports and Entertainment Corporation shall include in all contracts executed
5by them a provision obligating the contractor not to discriminate against any
6employee or applicant for employment because of age, race, religion, color, handicap,
7sex, physical condition, developmental disability as defined in s. 51.01 (5), sexual
8orientation as defined in s. 111.32 (13m) or national origin and, except with respect
9to sexual orientation, obligating the contractor to take affirmative action to ensure
10equal employment opportunities.
SB55-SSA1, s. 300 11Section 300. 16.765 (2) of the statutes is amended to read:
SB55-SSA1,66,212 16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and
13Clinics Authority, the Fox River Navigational System Authority, and the Bradley
14Center Sports and Entertainment Corporation shall include the following provision
15in every contract executed by them: "In connection with the performance of work
16under this contract, the contractor agrees not to discriminate against any employee
17or applicant for employment because of age, race, religion, color, handicap, sex,
18physical condition, developmental disability as defined in s. 51.01 (5), sexual
19orientation or national origin. This provision shall include, but not be limited to, the
20following: employment, upgrading, demotion or transfer; recruitment or recruitment
21advertising; layoff or termination; rates of pay or other forms of compensation; and
22selection for training, including apprenticeship. Except with respect to sexual
23orientation, the contractor further agrees to take affirmative action to ensure equal
24employment opportunities. The contractor agrees to post in conspicuous places,

1available for employees and applicants for employment, notices to be provided by the
2contracting officer setting forth the provisions of the nondiscrimination clause".
SB55-SSA1, s. 301 3Section 301. 16.765 (4) of the statutes is amended to read:
SB55-SSA1,66,74 16.765 (4) Contracting agencies, the University of Wisconsin Hospitals and
5Clinics Authority, the Fox River Navigational System Authority, and the Bradley
6Center Sports and Entertainment Corporation shall take appropriate action to
7revise the standard government contract forms under this section.
SB55-SSA1, s. 302 8Section 302. 16.765 (5) of the statutes is amended to read:
SB55-SSA1,66,219 16.765 (5) The head of each contracting agency and the boards of directors of
10the University of Wisconsin Hospitals and Clinics Authority, the Fox River
11Navigational System Authority,
and the Bradley Center Sports and Entertainment
12Corporation shall be primarily responsible for obtaining compliance by any
13contractor with the nondiscrimination and affirmative action provisions prescribed
14by this section, according to procedures recommended by the department. The
15department shall make recommendations to the contracting agencies and the boards
16of directors of the University of Wisconsin Hospitals and Clinics Authority, the Fox
17River Navigational System Authority,
and the Bradley Center Sports and
18Entertainment Corporation for improving and making more effective the
19nondiscrimination and affirmative action provisions of contracts. The department
20shall promulgate such rules as may be necessary for the performance of its functions
21under this section.
SB55-SSA1, s. 303 22Section 303. 16.765 (6) of the statutes is amended to read:
SB55-SSA1,67,423 16.765 (6) The department may receive complaints of alleged violations of the
24nondiscrimination provisions of such contracts. The department shall investigate
25and determine whether a violation of this section has occurred. The department may

1delegate this authority to the contracting agency, the University of Wisconsin
2Hospitals and Clinics Authority, the Fox River Navigational System Authority, or the
3Bradley Center Sports and Entertainment Corporation for processing in accordance
4with the department's procedures.
SB55-SSA1, s. 304 5Section 304. 16.765 (7) (intro.) of the statutes is amended to read:
SB55-SSA1,67,126 16.765 (7) (intro.) When a violation of this section has been determined by the
7department, the contracting agency, the University of Wisconsin Hospitals and
8Clinics Authority, the Fox River Navigational System Authority, or the Bradley
9Center Sports and Entertainment Corporation, the contracting agency, the
10University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational
11System Authority,
or the Bradley Center Sports and Entertainment Corporation
12shall:
SB55-SSA1, s. 305 13Section 305. 16.765 (7) (d) of the statutes is amended to read:
SB55-SSA1,67,1814 16.765 (7) (d) Direct the violating party to take immediate steps to prevent
15further violations of this section and to report its corrective action to the contracting
16agency, the University of Wisconsin Hospitals and Clinics Authority , the Fox River
17Navigational System Authority,
or the Bradley center sports and entertainment
18corporation.
SB55-SSA1, s. 306 19Section 306. 16.765 (8) of the statutes is amended to read:
SB55-SSA1,68,520 16.765 (8) If further violations of this section are committed during the term
21of the contract, the contracting agency, the Fox River Navigational System Authority,
22or the Bradley Center Sports and Entertainment Corporation may permit the
23violating party to complete the contract, after complying with this section, but
24thereafter the contracting agency, the Fox River Navigational System Authority, or
25the Bradley Center Sports and Entertainment Corporation shall request the

1department to place the name of the party on the ineligible list for state contracts,
2or the contracting agency, the Fox River Navigational System Authority, or the
3Bradley Center Sports and Entertainment Corporation may terminate the contract
4without liability for the uncompleted portion or any materials or services purchased
5or paid for by the contracting party for use in completing the contract.
SB55-SSA1, s. 307 6Section 307. 16.78 of the statutes is amended to read:
SB55-SSA1,68,24 716.78 Purchases from division of information technology services
8department of electronic government. (1) Every agency other than the board
9of regents of the University of Wisconsin system and an agency making purchases
10under s. 16.74 shall purchase all computer make all purchases of materials, supplies,
11equipment, and contractual
services relating to information technology or
12telecommunications
from the division of information technology services in the
13department of administration electronic government, unless the division
14department of electronic government requires the agency to purchase the materials,
15supplies, equipment, or contractual services pursuant to a master contract
16established under s. 22.05 (2) (h), or
grants written authorization to the agency to
17procure the materials, supplies, equipment, or contractual services under s. 16.75 (1)
18or (2m), to purchase the materials, supplies, equipment, or contractual services from
19another agency or to provide the materials, supplies, equipment, or contractual
20services to itself. The board of regents of the University of Wisconsin system may
21purchase computer services from the division of information technology services
22make purchases of materials, supplies, equipment, and contractual services relating
23to information technology or telecommunications from the department of electronic
24government
.
SB55-SSA1,69,4
1(2) Sections 16.705 to 16.767 and 16.77 (1) do not apply to the purchase of
2computer materials, supplies, equipment, or contractual services by any agency from
3the division of information technology services department of electronic government
4under sub. (1)
.
SB55-SSA1, s. 308 5Section 308. 16.80 of the statutes is renumbered 22.19.
SB55-SSA1, s. 310 6Section 310. 16.838 (1) (b) of the statutes is amended to read:
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