2005 BILL
AN ACT ...; relating to: reports concerning the cost of occupancy of state facilities.
Analysis by the Legislative Reference Bureau
STATE GOVERNMENT
Other State Government
This bill directs state agencies to report annually to DOA concerning the total cost of occupancy of each state-owned building, structure, or facility under the jurisdiction of the agency, excluding public highways and bridges. The report must be made in a format prescribed by DOA. The cost of occupancy must also be computed in a manner prescribed by DOA, and must include the direct cost of operation and maintenance, administrative costs incurred by an agency that are attributable to the building, structure, or facility, and any debt service costs associated with the building, structure, or facility. Beginning in 2009, the bill provides that if a building, structure or facility is a part of an institution, the report must include the total cost of occupancy of all buildings, structures, and facilities within the institution. The bill permits DOA to exempt an agency from compliance with the reporting requirement with respect to a building, structure, or facility that DOA determines to have a minimal total cost of occupancy.
The bill also provides that DOA must compile the information received from each agency and annually transmit a consolidated report on the total cost of occupancy of all buildings, structures, and facilities owned by the state, itemized for each building, structure, and facility, to the Building Commission. The report must include, for each building, structure, and facility, the recommendations of DOA concerning the desired total cost of occupancy for that building, structure, or facility.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 16.891 of the statutes is created to read:
16.891 Reports on cost of occupancy of state facilities. (1) In this section:
(a) "Agency" has the meaning given in s. 16.70 (1e).
(b) "Total cost of occupancy" means the cost to operate and maintain the physical plant of a building, structure, or facility, including administrative costs of an agency attributable to operation and maintenance of a building, structure, or facility, together with any debt service costs associated with the building, structure, or facility, computed in the manner prescribed by the department.
(2) Except as provided in sub. (4), each agency shall report to the department no later than October 1 of each year concerning the total cost of occupancy of each state-owned building, structure, and facility, excluding public highways and bridges, under the jurisdiction of the agency for the preceding fiscal year. The report shall be made in a format prescribed by the department. Beginning in 2009, if a building, structure, or facility is a part of an institution, the agency having jurisdiction of the institution shall also include in its report the total cost of occupancy of all of the buildings, structures, and facilities within the institution.
(3) No later than December 1 of each year, the department shall compile the information received under sub. (2) and transmit a consolidated report to the building commission on the total cost of occupancy of all buildings, structures, and facilities included in the reports filed under sub. (2), itemized for each building, structure, and facility. The report shall include, for each building, structure, or facility, the recommendations of the department concerning the desired total cost of occupancy for that building, structure, or facility.
(4) The department may exempt an agency from compliance with the reporting requirement under sub. (2) with respect to any building, structure, or facility that the department determines to have a minimal total cost of occupancy.
SECTION 9355. Initial applicability; other.
(1) REPORTS CONCERNING OCCUPANCY OF STATE FACILITIES. The treatment of section 16.891 of the statutes first applies with respect to reports due for submittal in the year 2006.
(End)
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2005 - 2006 LEGISLATURE
DOA:......Kraus, BB0352 - Sale of state property
For 2005-07 Budget -- Not Ready For Introduction
2005 BILL
AN ACT ...; relating to: sale of certain state properties.
Analysis by the Legislative Reference Bureau
state government
State finance
This bill transfers $36,000,000 from the general fund to the budget stabilization fund.
Other state government
Currently, state agencies having jurisdiction over state properties are authorized to sell the properties under various conditions and limitations, if the operation of the properties is not specifically provided for by law. The proceeds of any sales are credited or deposited in various ways as provided by law.
Currently, the Building Commission may sell or lease all or part of a state-owned building or structure or state-owned land if such authority is not provided to a state agency by law. The proceeds of any such sales or leases, after retirement of any outstanding debt on the affected properties, are paid into the budget stabilization fund. In addition, the Building Commission may sell certain surplus state land, subject in most cases to the consent of the Joint Committee on Finance, and may sell certain state-owned land in the vicinity of the state capitol.
This bill directs the secretary of administration, no later than July 1, 2006, to review all holdings state-owned real property for potential sale, except property under the jurisdiction of the Board of Regents of the UW System, property under the jurisdiction of DNR (except central or district office facilities), and certain other specified property. Potential sales may include surplus or nonsurplus property, and may be evaluated with or without the approval of the state agency that administers the affected property.
No later than October 1, 2006, the secretary of administration must submit a report to the secretary of the Building Commission containing an inventory of the secretary's recommendations to offer specified state properties for sale and giving the reasons therefor. Under the bill, if the Building Commission votes to approve the sale of any property included in the inventory on or before June 30, 2007, DOA may offer the property for sale and may sell the property if DOA believes that the sale is in the best interests of the state, subject to certain exceptions. Under the bill, the sale price need not reflect fair market value.
Any sale of state property by DOA may be either on the basis of public bids or negotiated prices. The bill does not authorize DOA to close or sell any facility or institution the operation of which is provided for by law. The authority granted by the bill does not apply to property that is leased by the state during the term of the lease without consent of the lessee. With certain exceptions, all net proceeds of property sales, after retirement of any outstanding debt on the affected properties and after any required reimbursement of the federal government for any federal financial assistance used to acquire, construct, or improve the properties, are deposited in the general fund.
Currently, the proceeds of sales of real property by the Board of Regents of the University of Wisconsin System are appropriated for various purposes. This bill provides that, for proceeds received from these sales before July 1, 2007, unless otherwise required for properties that are encumbered, acquired, constructed, or improved with federal financial assistance, or restricted by the terms of a gift or grant, the board shall use the net proceeds for the operation of the UW System.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 13.101 (13) of the statutes is repealed.
SECTION 2. 13.48 (14) (a) of the statutes is amended to read:
13.48 (14) (a) In this subsection, "agency" has the meaning given for "state agency" in s. 20.001 (1), except that prior to July 1, 2007, the term does not include the Board of Regents of the University of Wisconsin System.
SECTION 3. 13.48 (14) (d) 4. of the statutes is amended to read:
13.48 (14) (d) 4. If the commission proposes to sell or transfer a parcel of surplus land having a fair market value of at least $20,000, the commission shall notify the joint committee on finance in writing of its proposed action. If the cochairpersons of the committee do not notify the commission that the committee has scheduled a meeting for the purpose of reviewing the proposed sale or transfer within 14 working days after the date of the commission's notification, the parcel may be sold or transferred by the commission. If, within 14 working days after the date of the commission's notification, the cochairpersons of the committee notify the commission that the committee has scheduled a meeting for the purpose of reviewing the proposed sale or transfer, the parcel may be sold or transferred under this subdivision only upon approval of the committee. This subdivision does not apply to surplus land that is authorized to be sold under s. 16.848.
SECTION 4. 13.48 (22) of the statutes is amended to read:
13.48 (22) SALE OR LEASE OF CAPITOL AREA LANDS. The building commission may lease or resell lands acquired in the capitol planning area for public or private redevelopment and may set such conditions of sale or lease as it deems necessary to ensure development compatible with the needs of the community and the state. This subsection does not apply to lands that are authorized to be sold under s. 16.848.
SECTION 5. 16.848 of the statutes is created to read:
16.848 Sale of certain state property. (1) Except as provided in sub. (2) and subject to sub. (3), the department may sell any state-owned real property, if the department determines that the sale is in the best interest of the state. The sale may be either on the basis of public bids, with the department reserving the right to reject any bid in the interest of the state, or negotiated prices.
(2) (a) Subsection (1) does not authorize the closure or sale of any facility or institution the operation of which is provided for by law.
(b) Subsection (1) does not apply to property under the jurisdiction of the board of regents of the University of Wisconsin System.
(c) Subsection (1) does not apply to property sold by the department under s. 16.98 (3).
(d) Subsection (1) does not apply to lands under the jurisdiction of the board of commissioners of public lands.
(e) Subsection (1) does not apply to property under the jurisdiction of the department of natural resources, except central or district office facilities.
(f) Subsection (1) does not apply to lands acquired with revenues collected under s. 70.58.
(g) Subsection (1) does not apply to property that is subject to sale by the department of veterans affairs under s. 45.72 (7).
(h) The department shall not sell any property under this section that is leased by the state until the lease expires or the lease is modified, renewed, or extended, whichever first occurs, without consent of the lessee.
(3) The department shall not sell any state property under sub. (1) unless the sale is approved by the building commission under 2005 Wisconsin Act .... (this act), section 9101 (1) (b).
(4) Except as provided in s. 13.48 (14) (e), if there is any outstanding public debt used to finance the acquisition, construction, or improvement of any property that is sold under sub. (1), the department shall deposit a sufficient amount of the net proceeds from the sale of the property in the bond security and redemption fund under s. 18.09 to repay the principal and pay the interest on the debt, and any premium due upon refunding any of the debt. If the property was acquired, constructed, or improved with federal financial assistance, the department shall pay to the federal government any of the net proceeds required by federal law. If the property was acquired by gift or grant or acquired with gift or grant funds, the department shall adhere to any restriction governing use of the proceeds. Except as required under ss. 13.48 (14) (e), 20.395 (9) (qd), and 51.06 (6), if there is no such debt outstanding, there are no moneys payable to the federal government, and there is no restriction governing use of the proceeds, and if the net proceeds exceed the amount required to be deposited, paid, or used for another purpose under this subsection, the department shall deposit the net proceeds or remaining net proceeds in the general fund.
SECTION 6. 20.285 (1) (h) of the statutes is amended to read:
20.285 (1) (h) Auxiliary enterprises. Except as provided under subs. (4) (g) and (gm), (5) (i), and (6) (g), all moneys received by the University of Wisconsin System for or on account of any housing facility, commons, dining halls, cafeteria, student union, athletic activities, stationery stand or bookstore, parking facilities or car fleet, or such other auxiliary enterprise activities as the board designates and including such fee revenues as allocated by the board and including such moneys received under leases entered into previously with nonprofit building corporations as the board designates to be receipts under this paragraph, but not including any moneys received from the sale of real property before July 1, 2007, to be used for the operation, maintenance, and capital expenditures of activities specified in this paragraph, including the transfer of funds to pars. (kd), (ke), and s. 20.235 (1) (ke), and to nonprofit building corporations to be used by the corporations for the retirement of existing indebtedness and such other payments as may be required under existing loan agreements, for optional rental payments in addition to the mandatory rental payments under the leases and subleases in connection with the providing of facilities for such activities, and for grants under ss. 36.25 (14) and 36.34. A separate account shall be maintained for each campus and extension. Upon the request of the extension or any campus within the system, the board of regents may transfer surplus moneys appropriated under this paragraph to the appropriation account under par. (kp). Annually, the amount in the schedule under s. 20.005 (3) for the appropriation under s. 20.235 (1) (ke) shall be transferred from this appropriation to the appropriation account under s. 20.235 (1) (ke).
SECTION 7. 20.285 (1) (iz) of the statutes is amended to read:
20.285 (1) (iz) General operations receipts. All moneys received for or on account of the University of Wisconsin System, unless otherwise specifically appropriated, including all moneys received from the sale of real property prior to July 1, 2007, to be used for general operations.
SECTION 8. 20.285 (1) (j) of the statutes is amended to read:
20.285 (1) (j) Gifts and donations. All moneys received from gifts, grants, bequests and devises, except moneys received from the sale of real property before July 1, 2007, to be administered and expended in accordance with the terms of the gift, grant, bequest or devise to carry out the purposes for which made and received.
SECTION 9. 20.285 (1) (ka) of the statutes is amended to read:
20.285 (1) (ka) Sale of real property. All net proceeds from the sale of real property by the board under s. 36.34, 1969 stats., and s. 36.33, except net proceeds received before July 1, 2007, to be used for the purposes of s. 36.34, 1969 stats., and s. 36.33, including the expenses enumerated in s. 13.48 (2) (d) incurred in selling the real property under those sections.
SECTION 10. 23.15 (6) of the statutes is created to read:
23.15 (6) This section does not apply to property that is authorized to be sold under s. 16.848.
SECTION 11. 25.60 of the statutes is amended to read:
25.60 Budget stabilization fund. There is created a separate nonlapsible trust fund designated as the budget stabilization fund, consisting of moneys transferred to the fund from the general fund under ss. 13.48 (14) (c), 16.518 (3), and, 16.72 (4) (b), and 16.848.
SECTION 12. 45.37 (10) (c) of the statutes is amended to read:
45.37 (10) (c) The Except where a sale occurs under s. 16.848, the department may manage, sell, lease or transfer property descending to the state pursuant to this section or conveyed to it by members, defend and prosecute all actions concerning it, pay all just claims against it, and do all other things necessary for the protection, preservation and management of such property. All expenditures necessary for the execution of functions under this paragraph or sub. (11) shall be made from the appropriation in s. 20.485 (1) (h).
SECTION 13. 45.38 (2) (a) 1. of the statutes is amended to read:
45.38 (2) (a) 1. Without limitation by reason of any other provisions of the statutes except s. 16.848, the power to sell and to convey title in fee simple to a nonprofit corporation any land and any existing buildings thereon owned by, or owned by the state and held for, the department or of any of the institutions under the jurisdiction of the department for such consideration and upon such terms and conditions as in the judgment of the board are in the public interest.
SECTION 14. 46.03 (30) (a) of the statutes is amended to read:
46.03 (30) (a) To provide for an orderly reduction of state institutional primary psychiatric services the department may approve the institutes entering into contracts with county departments under s. 51.42 for providing primary psychiatric care. If excess capacity exists at state operated mental health institutes, the department shall, subject to s. 16.848, explore whether the possible sale or lease of such excess facilities may be sold or leased to a county department under s. 51.42.
SECTION 15. 46.035 (1) (a) of the statutes is amended to read:
46.035 (1) (a) The term "existing building" in relation to any conveyance, lease or sublease made under sub. (2) (a) 1., 2. and 3., (b), and (c) means all detention, treatment, administrative, recreational, infirmary, hospital, vocational and academic buildings; all dormitories and cottages; all storage facilities, heating plants, sewage disposal plants, and such other buildings, structures, facilities and permanent improvements as in the judgment of the secretary are needed or useful for the purposes of the department, and all equipment therefor and all improvements and additions thereto which were erected, constructed or installed prior to the making of such conveyance, lease or sublease.
SECTION 16. 46.035 (1) (b) of the statutes is amended to read:
46.035 (1) (b) The term "new building" in relation to any conveyance, lease or sublease made under sub. (2) (a) 1., 2. and 3., (b), and (c) means all detention, treatment, administrative, recreational, infirmary, hospital, vocational and academic buildings; all dormitories and cottages; all storage facilities, heating plants, sewage disposal plants, and such other buildings, structures, facilities and permanent improvements as in the judgment of the secretary are needed or useful for the purposes of the department, and all equipment therefor and all improvements and additions thereto which are erected, constructed or installed after the making of such conveyance, lease or sublease.
SECTION 17. 46.035 (2) (intro.) of the statutes is repealed.
SECTION 18. 46.035 (2) (a) of the statutes is renumbered 46.035 (2), and 46.035 (2) (intro.), (a) and (c) to (j), as renumbered, are amended to read:
46.035 (2) (intro.) In order to provide new buildings and to enable the construction and financing thereof, to refinance indebtedness hereafter created by a nonprofit corporation for the purpose of providing a new building or buildings or additions or improvements thereto which are located on land owned by, or owned by the state and held for, the department or on lands of the institutions under the jurisdiction of the department or by the nonprofit corporation, or for any one or more of said purposes, but for no other purpose unless authorized by law, the department has, subject to s. 16.848, the following powers and duties:
(a) Without limitation by reason of any other provisions of the statutes except s. 16.848, the power to sell and to convey title in fee simple to a nonprofit corporation any land and any existing buildings thereon owned by, or owned by the state and held for, the department or of any of the institutions under the jurisdiction of the department for such consideration and upon such terms and conditions as in the judgment of the secretary are in the public interest.
(c) The power to lease or sublease from such nonprofit corporation, and to make available for public use, any such land and existing buildings conveyed or leased to such nonprofit corporation under subds. 1. and 2. pars. (a) and (b), and any new buildings erected upon such land or upon any other land owned by such nonprofit corporation, upon such terms, conditions and rentals, subject to available appropriations, as in the judgment of the secretary are in the public interest. With respect to any property conveyed to such nonprofit corporation under subd. 1. par. (a), such lease from such nonprofit corporation may be subject or subordinated to one or more mortgages of such property granted by such nonprofit corporation.
(d) The duty to submit the plans and specifications for all such new buildings and all conveyances, leases and subleases made under this section subsection to the department of administration and the governor for written approval before they are finally adopted, executed and delivered.
(e) The power to pledge and assign all or any part of the revenues derived from the operation of such new buildings as security for the payment of rentals due and to become due under any lease or sublease of such new buildings under subd. 3 par. (c).
(f) The power to covenant and agree in any lease or sublease of such new buildings made under subd. 3. par. (c) to impose fees, rentals or other charges for the use and occupancy or other operation of such new buildings in an amount calculated to produce net revenues sufficient to pay the rentals due and to become due under such lease or sublease.
(g) The power to apply all or any part of the revenues derived from the operation of existing buildings to the payment of rentals due and to become due under any lease or sublease made under subd. 3 par. (c).
(h) The power to pledge and assign all or any part of the revenues derived from the operation of existing buildings to the payment of rentals due and to become due under any lease or sublease made under subd. 3 par. (c).
