AB144,231,1310 16.62 (2) The department may establish user charges for records storage and
11retrieval services, with any moneys collected to be credited to the appropriation
12account under s. 20.505 (1) (im) or (kd) (kb). Such charges shall be structured to
13encourage efficient utilization of the services.
AB144, s. 265 14Section 265. 16.62 (3) of the statutes is amended to read:
AB144,231,1715 16.62 (3) The department may establish user fees for the services of the public
16records board. Any moneys collected shall be credited to the appropriation account
17under s. 20.505 (1) (kd) (kb).
AB144, s. 266 18Section 266. 16.63 of the statutes is created to read:
AB144,231,20 1916.63 Sale of state's rights to tobacco settlement agreement payments.
20(1) In this section:
AB144,231,2221 (a) "Purchaser" means any person who has purchased the state's right to
22receive any of the payments under the tobacco settlement agreement.
AB144,231,2423 (b) "Tobacco settlement agreement" means the Attorneys General Master
24Tobacco Settlement Agreement of November 23, 1998.
AB144,232,3
1(c) "Tobacco settlement revenues" means the right to receive settlement
2payments arising from or pursuant to the tobacco settlement agreement and all
3direct or indirect proceeds of that right.
AB144,232,5 4(2) The secretary may sell for cash or other consideration the state's right to
5receive any of the payments under the tobacco settlement agreement.
AB144,232,9 6(3) The secretary may organize one or more nonstock corporations under ch.
7181 or limited liability companies under ch. 183 for any purpose related to the sale
8of the state's right to receive any of the payments under the tobacco settlement
9agreement and may take any action necessary to facilitate and complete the sale.
AB144,232,11 10(4) (a) Tobacco settlement revenues may not be deemed proceeds of any
11property which is not tobacco settlement revenues.
AB144,232,1512 (b) Except as otherwise provided in this subsection, the creation, perfection,
13and enforcement of security interests in tobacco settlement revenues are governed
14by ch. 409. Notwithstanding ch. 409, with regard to creating, perfecting, and
15enforcing a valid security interest in tobacco settlement revenues:
AB144,232,1816 1. If this state or the Wisconsin health and educational facilities authority is
17the debtor in the transaction, the proper place to file the required financing
18statement to perfect the security interest is the department of financial institutions.
AB144,232,2419 2. The required financing statement shall include a description of collateral
20that describes the collateral as general intangibles consisting of the right to receive
21settlement payments arising from or pursuant to the tobacco settlement agreement
22and all proceeds of that right. The required financing statement may include any
23additional description of collateral that is legally sufficient under the laws of this
24state.
AB144,233,2
13. The tobacco settlement revenues are general intangibles for purposes of ch.
2409.
AB144,233,123 4. A security interest perfected under this paragraph is enforceable against the
4debtor, any assignee or grantee, and all third parties, including creditors under any
5lien obtained by judicial proceedings, subject only to the rights of any third parties
6holding security interests in the tobacco settlement revenues previously perfected
7under this paragraph. Unless the applicable security agreement provides otherwise,
8a perfected security interest in the tobacco settlement revenues is a continuously
9perfected security interest in all tobacco settlement revenues existing on the date of
10the agreement or arising after the date of the agreement. A security interest
11perfected under this paragraph has priority over any other lien created by operation
12of law or otherwise, which subsequently attaches to the tobacco settlement revenues.
AB144,233,1513 5. The priority of a security interest created under this paragraph is not
14affected by the commingling of proceeds arising from the tobacco settlement
15revenues with other amounts.
AB144,233,1816 (c) The sale, assignment, and transfer of tobacco settlement revenues are
17governed by this paragraph. All of the following apply to a sale, assignment, or
18transfer under this paragraph:
AB144,233,2519 1. The sale, assignment, or transfer is an absolute transfer of, and not a pledge
20of or secured transaction relating to, the seller's right, title, and interest in, to, and
21under the tobacco settlement revenues, if the documents governing the transaction
22expressly state that the transaction is a sale or other absolute transfer. After such
23a transaction, the tobacco settlement revenues are not subject to any claims of the
24seller or the seller's creditors, other than creditors holding a prior security interest
25in the tobacco settlement revenues perfected under par. (b).
AB144,234,3
12. The characterization of the sale, assignment, or transfer as an absolute
2transfer under subd. 1. and the corresponding characterization of the purchaser's
3property interest is not affected by any of the following factors:
AB144,234,54 a. Commingling of amounts arising with respect to the tobacco settlement
5revenues with other amounts.
AB144,234,86 b. The retention by the seller of a partial or residual interest, including an
7equity interest, in the tobacco settlement revenues, whether direct or indirect, or
8whether subordinate or otherwise.
AB144,234,109 c. The sale, assignment, or transfer of only a portion of the tobacco settlement
10revenues or an undivided interest in the tobacco settlement revenues.
AB144,234,1111 d. Any recourse that the purchaser or its assignees may have against the seller.
AB144,234,1512 e. Whether the seller is responsible for collecting payments due under the
13tobacco settlement revenues or for otherwise enforcing any of the tobacco settlement
14revenues or retains legal title to the tobacco settlement revenues for the purpose of
15these collection activities.
AB144,234,1616 f. The treatment of the sale, assignment, or transfer for tax purposes.
AB144,234,1917 3. The sale, assignment, or transfer is perfected automatically as against third
18parties, including any third parties with liens created by operation of law or
19otherwise, upon attachment under ch. 409.
AB144,234,2420 4. Nothing in this subsection precludes consideration of the factors listed in
21subd. 2. a. to e. in determining whether the sale, assignment, or transfer is a sale for
22tax purposes. The characterization of the sale, assignment, or transfer as an
23absolute transfer under subd. 1. may not be considered in determining whether the
24sale, assignment, or transfer is a sale for tax purposes.
AB144,235,13
1(5) If the secretary sells the state's right to receive any of the payments under
2the tobacco settlement agreement, the state pledges to and agrees with any
3purchaser or subsequent transferee of the state's right to receive any of the payments
4under the tobacco settlement agreement that the state will not limit or alter its
5powers to fulfill the terms of the tobacco settlement agreement, nor will the state in
6any way impair the rights and remedies provided under the tobacco settlement
7agreement. The state also pledges to and agrees with any purchaser or subsequent
8transferee of the state's right to receive any of the payments under the tobacco
9settlement agreement that the state will pay all costs and expenses in connection
10with any action or proceeding brought by or on behalf of the purchaser or any
11subsequent transferee related to the state's not fulfilling the terms of the tobacco
12settlement agreement. The secretary may include this pledge and agreement of the
13state in any contract that is entered into by the secretary under this section.
AB144,235,22 14(6) If the secretary sells the state's right to receive any of the payments under
15the tobacco settlement agreement, the state pledges to and agrees with any
16purchaser or subsequent transferee of the state's right to receive any of the payments
17under the tobacco settlement agreement that the state will not limit or alter the
18powers of the secretary under this section until any contract that is entered into
19under this section is fully performed, unless adequate provision is made by law for
20the protection of the rights and remedies of the purchaser or any subsequent
21transferee under the contract. The secretary may include this pledge and agreement
22of the state in any contract that is entered into by the secretary under this section.
AB144,236,2 23(7) The secretary may enter into a contract with any firm or individual engaged
24in providing financial services for the performance of any of his or her functions

1under this section, using selection and procurement procedures established by the
2secretary. That contract is not subject to s. 16.705 or 16.75.
AB144,236,8 3(8) This subsection and subs. (8m) and (9) shall govern all civil claims, suits,
4proceedings, and actions brought against the state relating to the sale of the state's
5right to receive any of the payments under the tobacco settlement agreement. If the
6state fails to comply with this section or the terms of any agreement relating to the
7sale of the state's right to receive any of the payments under the tobacco settlement
8agreement, an action to compel compliance may be commenced against the state.
AB144,236,11 9(8m) If the recovery of a money judgment against the state is necessary to give
10the plaintiff in an action under sub. (8) complete relief, a claim for the money
11damages may be joined with the claim commenced under sub. (8).
AB144,236,16 12(9) Sections 16.007, 16.53, and 775.01 do not apply to claims against the state
13under sub. (8) or (8m). If there is a final judgment against the state in such an action,
14the judgment shall be paid as provided in s. 775.04 together with interest at the rate
15of 10% per year from the date such payment was judged to have been due until the
16date of payment of the judgment.
AB144, s. 267 17Section 267. 16.70 (2) of the statutes is amended to read:
AB144,236,1918 16.70 (2) "Authority" means a body created under ch. 231, 232, 233 or, 234, or
19237
.
AB144, s. 268 20Section 268. 16.70 (4m) of the statutes is created to read:
AB144,236,2121 16.70 (4m) "Information technology" has the meaning given in s. 22.01 (6).
AB144, s. 269 22Section 269. 16.70 (15) of the statutes is created to read:
AB144,236,2323 16.70 (15) "Telecommunications" has the meaning given in s. 22.01 (10).
AB144, s. 270 24Section 270. 16.701 of the statutes is renumbered 16.701 (1).
AB144, s. 271 25Section 271. 16.701 (2) of the statutes is created to read:
AB144,237,4
116.701 (2) The department may permit prospective vendors to provide product
2or service information through the service established under sub. (1). The
3department may prescribe fees or establish fees through a competitive process for the
4use of the service under this subsection.
AB144, s. 272 5Section 272. 16.7015 of the statutes is amended to read:
AB144,237,19 616.7015 Bidders list. The department or any agency to which the department
7delegates purchasing authority under s. 16.71 (1)
may maintain a bidders list which.
8Any agency to which the department delegates purchasing authority under s. 16.71
9(1) may maintain a bidders list if authorized by the delegation. The bidders list
shall
10include the names and addresses of all persons who request to be notified of bids or
11competitive sealed proposals, excluding those to be awarded under s. 16.75 (1) (c) or
12(2m) (c), that are solicited by the department or other agency for the procurement of
13materials, supplies, equipment or contractual services under this subchapter. Any
14list maintained by the department may include the names and addresses of any
15person who requests to be notified of bids or competitive sealed proposals to be that
16are
solicited by any agency. The department or other agency shall notify each person
17on its list of all requests for bids or competitive sealed proposals that are solicited by
18the department or other agency. The department or other agency may remove any
19person from its list for cause.
AB144, s. 273 20Section 273. 16.71 (1) of the statutes is amended to read:
AB144,238,521 16.71 (1) Except as otherwise required under this section and s. 16.78 or as
22authorized in s. 16.74, the department shall purchase and may delegate to special
23designated agents the authority to purchase all necessary materials, supplies,
24equipment, all other permanent personal property and miscellaneous capital, and
25contractual services and all other expense of a consumable nature for all agencies.

1In making any delegation, the department shall require the agent to adhere to all
2requirements imposed upon the department in making purchases under this
3subchapter. All materials, services and other things and expense furnished to any
4agency and interest paid under s. 16.528 shall be charged to the proper appropriation
5of the agency to which furnished.
AB144, s. 274 6Section 274. 16.71 (1m) of the statutes is created to read:
AB144,238,127 16.71 (1m) The department shall not delegate to any executive branch agency
8the authority to enter into any contract for materials, supplies, equipment, or
9contractual services relating to information technology or telecommunications prior
10to review and approval of the contract by the chief information officer. No executive
11branch agency may enter into any such contract without review and approval of the
12contract by the chief information officer.
AB144, s. 275 13Section 275. 16.71 (2m) of the statutes is created to read:
AB144,238,1814 16.71 (2m) The department of administration shall delegate authority to make
15all purchases for the department of electronic government to the department of
16electronic government. This delegation may not be withdrawn, but the department
17of electronic government may elect to make any purchase through the department
18of administration.
AB144, s. 276 19Section 276. 16.71 (4) of the statutes is amended to read:
AB144,238,2420 16.71 (4) The With the approval of the department of electronic government,
21the
department of administration shall delegate authority to the technology for
22educational achievement in Wisconsin board to make purchases of educational
23technology equipment for use by school districts, cooperative educational service
24agencies and public educational institutions in this state, upon request of the board.
AB144, s. 277 25Section 277. 16.71 (6) of the statutes is created to read:
AB144,239,6
116.71 (6) The department may assess any agency or municipality to which it
2provides services under this subchapter for the cost of the services provided to the
3agency or municipality. The department may also identify savings that the
4department determines to have been realized by an agency to which it provides
5services under this subchapter and may assess the agency for not more than the
6amount of the savings identified by the department.
AB144, s. 278 7Section 278. 16.72 (2) (a) of the statutes is amended to read:
AB144,239,198 16.72 (2) (a) The department of administration shall prepare standard
9specifications, as far as possible, for all state purchases. By "standard specifications"
10is meant a specification, either chemical or physical or both, prepared to describe in
11detail the article which the state desires to purchase, and trade names shall not be
12used. On the formulation, adoption and modification of any standard specifications,
13the department of administration shall also seek and be accorded without cost, the
14assistance, advice and cooperation of other agencies and officers. Each specification
15adopted for any commodity shall, insofar as possible, satisfy the requirements of any
16and all agencies which use it in common. Any specifications for the purchase of
17materials, supplies, equipment, or contractual services for information technology
18or telecommunications purposes are subject to the approval of the chief information
19officer.
AB144, s. 279 20Section 279. 16.72 (2) (b) of the statutes is amended to read:
AB144,240,521 16.72 (2) (b) Except as provided in par. (a) and ss. 16.25 (4) (b), 16.751 and
22565.25 (2) (a) 4., the department shall prepare or review specifications for all
23materials, supplies, equipment, other permanent personal property and contractual
24services not purchased under standard specifications. Such "nonstandard
25specifications" may be generic or performance specifications, or both, prepared to

1describe in detail the article which the state desires to purchase either by its physical
2properties or programmatic utility. When appropriate for such nonstandard items
3or services, trade names may be used to identify what the state requires, but
4wherever possible 2 or more trade names shall be designated and the trade name of
5any Wisconsin producer, distributor or supplier shall appear first.
AB144, s. 280 6Section 280. 16.72 (2) (d) of the statutes is amended to read:
AB144,240,117 16.72 (2) (d) Except as permitted in s. ss. 16.75 (6) (am) and 16.751, to the extent
8possible, the department and any other designated purchasing agent under s. 16.71
9(1) shall write specifications for the purchase of materials, supplies, commodities,
10equipment and contractual services so as to permit their purchase from prison
11industries, as created under s. 303.01 (1).
AB144, s. 281 12Section 281. 16.72 (4) (a) of the statutes is amended to read:
AB144,240,2413 16.72 (4) (a) Except as provided in s. ss. 16.71 and 16.74 or as otherwise
14provided in this subchapter and the rules promulgated under s. 16.74 and this
15subchapter, all supplies, materials, equipment and contractual services shall be
16purchased for and furnished to any agency only upon requisition to the department.
17The department shall prescribe the form, contents, number and disposition of
18requisitions and shall promulgate rules as to time and manner of submitting such
19requisitions for processing. No agency or officer may engage any person to perform
20contractual services without the specific prior approval of the department for each
21such engagement. Purchases of supplies, materials, equipment or contractual
22services by the department of electronic government, the legislature, the courts or
23legislative service or judicial branch agencies do not require approval under this
24paragraph.
AB144, s. 282 25Section 282. 16.72 (8) of the statutes is amended to read:
AB144,241,6
116.72 (8) The division of information technology services of the department
2may purchase educational technology materials, supplies, equipment or contractual
3services from orders placed with the department by the technology for educational
4achievement in Wisconsin board on behalf of school districts, cooperative educational
5service agencies, technical college districts and the board of regents of the University
6of Wisconsin System.
AB144, s. 283 7Section 283. 16.735 of the statutes is created to read:
AB144,241,10 816.735 Multistate purchasing of prescription drugs. (1) In this section,
9"prescription drug" means a prescription drug, as defined in s. 450.01 (20), that is
10included in the drugs specified under s. 49.46 (2) (b) 6. h.
AB144,241,17 11(2) The department and the department of health and family services shall
12together work to develop, in conjunction with states other than this state and with
13associations, a multistate purchasing group for the direct negotiation with
14prescription drug manufacturers of rebates that are, in part, modeled on the rebate
15agreement specified under 42 USC 1396r-8 and that result, on average, in larger
16rebate amounts than those achievable under the rebate agreement specified under
1742 USC 1396r-8.
AB144, s. 284 18Section 284. 16.736 of the statutes is created to read:
AB144,241,21 1916.736 Prescription drug discount program. (1) In this section,
20"prescription drug" means a prescription drug, as defined in s. 450.01 (20), that is
21included in the drugs specified under s. 49.46 (2) (b) 6. h.
AB144,241,25 22(2) The department of administration shall contract with a private entity to
23administer a discount program for purchase of prescription drugs by persons of any
24age or income who pay to the entity nominal fees. Requirements of ss. 16.75 (3t) (c)
25and 16.752 (12) (a) do not apply to this subsection.
AB144, s. 285
1Section 285. 16.75 (1) (a) 1. of the statutes is amended to read:
AB144,242,102 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.
AB144, s. 286 11Section 286. 16.75 (1) (a) 3. of the statutes is amended to read:
AB144,242,2012 16.75 (1) (a) 3. Bids may be received only in accordance with such specifications
13as are adopted by the department as provided in this subsection. Any or all bids may
14be rejected. Each Whenever sealed bids are invited, each bid, with the name of the
15bidder, shall be entered on a record, and each record with the successful bid indicated
16shall, after the award or letting of the contract, be opened to public inspection. Where
17a low bid is rejected, a complete written record shall be compiled and filed, giving the
18reason in full for such action. Any waiver of sealed, advertised bids as provided in
19sub. (2m) or (6) shall be entered on a record kept by the department and open to public
20inspection.
AB144, s. 287 21Section 287. 16.75 (1) (b) of the statutes is amended to read:
AB144,243,1022 16.75 (1) (b) When the estimated cost exceeds $25,000, the department shall
23invite bids to be submitted. The department shall either solicit sealed bids to be
24opened publicly at a specified date and time, or shall solicit bidding by auction to be
25conducted electronically at a specified date and time. Whenever bids are invited,
due

1notice inviting bids shall be published as a class 2 notice, under ch. 985, and the bids
2or posted on the Internet at a site determined or approved by the department. The
3bid opening or auction
shall not be opened until occur at least 7 days from after the
4date of
the last day of publication insertion of the notice or at least 7 days after the
5date of posting on the Internet
. The official advertisement notice shall specify
6whether sealed bids are invited or bids will be accepted by auction, and
shall give a
7clear description of the materials, supplies, equipment, or service contractual
8services
to be purchased, the amount of the any bond, share draft, check, or other
9draft to be submitted as surety with the bid or prior to the auction, and the date of
10and time that the public opening or the auction will be held.
AB144, s. 288 11Section 288. 16.75 (1) (cm) of the statutes is created to read:
AB144,243,1412 16.75 (1) (cm) If bids are solicited by auction, the award may be made in
13accordance with simplified competitive procedures established by the department
14for such transactions.
AB144, s. 289 15Section 289. 16.75 (2) (a) of the statutes is amended to read:
AB144,243,2416 16.75 (2) (a) When the department of administration believes that it is to the
17best interests of the state to purchase certain patented or proprietary articles, other
18than printing and stationery, it may purchase said articles without the usual
19statutory procedure. All but all equipment shall be purchased from the lowest and
20best bidder as determined by the bids and a comparison of the any detailed
21specifications submitted with the bids, and after due advertisement as hereinbefore
22provided
notice, whenever notice is required under this section. Where the low bid
23or bids are rejected, a complete written record shall be compiled and filed, giving the
24reasons in full for such action.
AB144, s. 290 25Section 290. 16.75 (2m) (b) of the statutes is amended to read:
AB144,244,9
116.75 (2m) (b) When the estimated cost exceeds $25,000, the department shall
2publish a class 2 notice under ch. ch 985 inviting
may invite competitive sealed
3proposals by publishing a class 2 notice under ch. 985 or by posting notice on the
4Internet at a site determined or approved by the department
. The advertisement
5notice shall describe the materials, supplies, equipment, or service contractual
6services
to be purchased, the intent to solicit make the procurement by solicitation
7of
proposals rather than by solicitation of bids, any requirement for surety and the
8date the proposals will be opened, which shall be at least 7 days after the date of the
9last insertion of the notice or at least 7 days after the date of posting on the Internet.
AB144, s. 291 10Section 291. 16.75 (3t) (a) of the statutes is amended to read:
AB144,244,1211 16.75 (3t) (a) In this subsection, "form" has the meaning given under s. 16.97
1222.01 (5p).
AB144, s. 292 13Section 292. 16.75 (3t) (c) (intro.) of the statutes is amended to read:
AB144,245,514 16.75 (3t) (c) (intro.) The department of corrections shall periodically provide
15to the department of administration a current list of all materials, supplies,
16equipment or contractual services, excluding commodities, that are supplied by
17prison industries, as created under s. 303.01. The department of administration
18shall distribute the list to all designated purchasing agents under s. 16.71 (1). Prior
19Except as otherwise provided in sub. (6) (am), prior to seeking bids or competitive
20sealed proposals with respect to the purchase of any materials, supplies, equipment
21or contractual services enumerated in the list, the department of administration or
22any other designated purchasing agent under s. 16.71 (1) shall offer prison industries
23the opportunity to supply the materials, supplies, equipment or contractual services
24if the department of corrections is able to provide them at a price comparable to one
25which may be obtained through competitive bidding or competitive sealed proposals

1and is able to conform to the specifications, provided the specifications are written
2in accordance with s. 16.72 (2) (d). If the department of administration or other
3purchasing agent is unable to determine whether the price of prison industries is
4comparable, it may solicit bids or competitive proposals before awarding the order
5or contract. This paragraph does not apply to the printing of the following forms:
AB144, s. 293 6Section 293. 16.75 (6) (am) 1. of the statutes is repealed.
AB144, s. 294 7Section 294. 16.75 (6) (am) 2. of the statutes is renumbered 16.75 (6) (am) and
8amended to read:
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