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2005 - 2006 LEGISLATURE
February 17, 2005 - Introduced by Representatives Gottlieb, Jensen, Davis,
Gronemus, Gunderson, Hahn, Hines, Honadel, Kaufert, Krawczyk, F. Lasee,
LeMahieu, McCormick, Moulton, Musser, Nass, Nischke, Ott, Owens,
Pridemore, Staskunas
and Van Roy, cosponsored by Senators Cowles, Ellis,
Brown, Darling, S. Fitzgerald, Kapanke, A. Lasee, Lazich, Leibham, Olsen,
Roessler
and Zien. Referred to Committee on Budget Review.
AB105,1,6 1An Act to renumber and amend 16.705 (8); to amend 13.093 (2) (a), 16.705
2(1) and 16.705 (2); and to create 16.705 (8) (a) and (b) of the statutes; relating
3to:
state contractual service contracting procedures and information and fiscal
4estimate cost mitigation analyses, granting rule-making authority, and
5providing an exemption from and extending the time limit for emergency rule
6procedures.
Analysis by the Legislative Reference Bureau
Currently, the Department of Administration (DOA) or any state agency to
which DOA delegates purchasing authority may contract for contractual services
whenever the services may be performed more efficiently or economically than if they
were performed by state employees. This bill directs DOA to prescribe, by rule,
uniform procedures for determining whether services are appropriate for
contracting.
Currently, DOA must promulgate, by rule, procedures for DOA and the state
agencies to which DOA delegates purchasing authority to use when entering into
contractual service contracts. This bill provides that these rules must include a
requirement for the agencies to conduct a uniform cost-benefit analysis of each
proposed contractual service procurement in accordance with standards prescribed
in the rules and a requirement for agencies periodically to review the continued
appropriateness of contracting under each contractual services agreement.

Currently, following the end of each fiscal year, DOA must report to the
governor, the Joint Committee on Finance, the Joint Legislative Audit Committee,
and the appropriate legislative standing committees concerning state contractual
service procurements during the preceding fiscal year. This bill provides that the
report shall include a summary of the cost-benefit analyses prepared by state
agencies in the preceding fiscal year and recommendations for elimination of
unneeded contractual service procurements and for consolidation or resolicitation of
existing contractual service procurements.
The bill also provides that each fiscal estimate prepared for a bill must indicate
whether any increased costs incurred by the state under the bill can be mitigated
through the use of contractual service contracts let in accordance with competitive
procedures. Currently, there is no similar requirement.
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:
AB105, s. 1 1Section 1. 13.093 (2) (a) of the statutes is amended to read:
AB105,3,122 13.093 (2) (a) Any bill making an appropriation, any bill increasing or
3decreasing existing appropriations or state or general local government fiscal
4liability or revenues, and any bill that modifies an existing surcharge or creates a
5new surcharge that is imposed under ch. 814, shall, before any vote is taken thereon
6by either house of the legislature if the bill is not referred to a standing committee,
7or before any public hearing is held before any standing committee or, if no public
8hearing is held, before any vote is taken by the committee, incorporate a reliable
9estimate of the anticipated change in appropriation authority or state or general
10local government fiscal liability or revenues under the bill, including to the extent
11possible a projection of such changes in future biennia. The estimate shall also
12indicate whether any increased costs incurred by the state under the bill can be
13mitigated though the use of contractual service contracts let in accordance with
14competitive procedures.
For purposes of this paragraph, a bill increasing or

1decreasing the liability or revenues of the unemployment reserve fund is considered
2to increase or decrease state fiscal liability or revenues. Except as otherwise
3provided by joint rules of the legislature or this paragraph, such estimates shall be
4made by the department or agency administering the appropriation or fund or
5collecting the revenue. The joint survey committee on retirement systems shall
6prepare the fiscal estimate with respect to the provisions of any bill referred to it
7which create or modify any system for, or make any provision for, the retirement of
8or payment of pensions to public officers or employees. The director of state courts
9shall prepare the fiscal estimate with respect to the provisions of any bill that
10modifies an existing surcharge or creates a new surcharge that is imposed under ch.
11814. When a fiscal estimate is prepared after the bill has been introduced, it shall
12be printed and distributed as are amendments.
AB105, s. 2 13Section 2. 16.705 (1) of the statutes is amended to read:
AB105,3,1714 16.705 (1) The department or its agents may contract for services which can
15be performed more economically or efficiently by such contract. The department
16shall, by rule, prescribe uniform procedures for determining whether services are
17appropriate for contracting under this subsection.
AB105, s. 3 18Section 3. 16.705 (2) of the statutes is amended to read:
AB105,4,919 16.705 (2) The department shall promulgate rules for the procurement of
20contractual services by the department and its designated agents, including but not
21limited to the rules prescribing approval and monitoring processes for contractual
22service contracts, a requirement for agencies to conduct a uniform cost-benefit
23analysis of each proposed contractual service procurement in accordance with
24standards prescribed in the rules, and a requirement for agencies to review
25periodically the continued appropriateness of contracting under each contractual

1services agreement
. Each officer requesting approval to engage any person to
2perform contractual services shall submit to the department written justification for
3such contracting which shall include a description of the contractual services to be
4procured, justification of need, justification for not contracting with other agencies,
5a specific description of the scope of contractual services to be performed, and
6justification for the procurement process if a process other than competitive bidding
7is to be used. The department may not approve any contract for contractual services
8unless it is satisfied that the justification for contracting conforms to the
9requirements of this section and ss. 16.71 to 16.77.
AB105, s. 4 10Section 4. 16.705 (8) of the statutes is renumbered 16.705 (8) (intro.) and
11amended to read:
AB105,4,1812 16.705 (8) (intro.) The department shall, annually on or before October 15,
13submit to the governor, the joint committee on finance, the joint legislative audit
14committee and the chief clerk of each house of the legislature for distribution to the
15appropriate standing committees under s. 13.172 (3), a report concerning the
16number, value and nature of contractual service procurements authorized for each
17agency during the preceding fiscal year. The report shall also include, with respect
18to contractual service procurements by agencies for the preceding fiscal year:
AB105, s. 5 19Section 5. 16.705 (8) (a) and (b) of the statutes are created to read:
AB105,4,2120 16.705 (8) (a) A summary of the cost-benefit analyses completed by agencies
21in compliance with rules promulgated by the department under sub. (2).
AB105,4,2422 (b) Recommendations for elimination of unneeded contractual service
23procurements and for consolidation or resolicitation of existing contractual service
24procurements.
AB105, s. 6 25Section 6 . Nonstatutory provisions.
AB105,5,6
1(1) Reports on initial training. In each of the first 3 annual reports submitted
2by the department of administration under section 16.705 (8) of the statutes
3following the effective date of this subsection, the department shall include a list of
4the agencies that have completed training required for preparation of cost-benefit
5analyses for contractual service procurements by the agencies in accordance with
6rules promulgated by the department.
AB105,5,177 (2) Emergency rules on contractual service procurement. Using the
8procedure under section 227.24 of the statutes, the Department of Administration
9shall, no later than the first day of the 6th month beginning after the effective date
10of this subsection, promulgate the rules required under section 16.705 of the
11statutes, as affected by this act, as emergency rules, which shall be in effect for the
12period before the effective date of the permanent rules promulgated under section
1316.705 of the statues, as affected by this act. Notwithstanding section 227.24 (1) (a)
14and (3) of the statutes, the department is not required to provide evidence that
15promulgating a rule under this subsection as an emergency rule is necessary for the
16preservation of the public peace, health, safety, or welfare and is not required to
17provide a finding of emergency for a rule promulgated under this subsection.
AB105, s. 7 18Section 7. Initial applicability.
AB105,5,2119 (1) The treatment of section 13.093 (2) (a) of the statutes first applies with
20respect to fiscal estimates ordered on the first day of the 6th month beginning after
21publication.
AB105,5,2422 (2) The treatment of section 16.705 (2) of the statutes first applies with respect
23to solicitations for contractual services issued on the effective date of emergency
24rules promulgated under Section 6 (2).
AB105,6,3
1(3) The renumbering and amendment of section 16.705 (8) of the statutes and
2the creation of section 16.705 (8) (a) and (b) of the statutes first apply with respect
3to the report that is due for submittal on October 15, 2006.
AB105,6,44 (End)
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