Amendment CSA1-SB40

SB40-CSA1,59,16 (12) (a) In this subsection, "master lease" has the meaning given under s. 16.76 (4).

SB40-CSA1,59,22 (b) Annually, no later than October 1, submit to the governor and the members of the joint committee on information policy and technology a report documenting the use by each executive branch agency, other than the Board of Regents of the University of Wisconsin System, of master leases to fund information technology projects in the previous fiscal year. The report shall contain all of the following information:

SB40-CSA1,59,24 1. The total amount paid under master leases towards information technology projects in the previous fiscal year.

SB40-CSA1,60,2 2. The master lease payment amounts approved to be applied to information technology projects in future years.

SB40-CSA1,60,5 3. The total amount paid by each executive branch agency on each information technology project for which debt is outstanding, as compared to the total financing amount originally approved for that information technology project.

SB40-CSA1,60,7 4. A summary of repayments made towards any master lease in the previous fiscal year.

SB40-CSA1,60,20 (13) (a) Except as provided in par. (b), include in each contract with a vendor of information technology that involves a large, high-risk information technology project under sub. (10) or that has a projected cost greater than $1,000,000, and require each executive branch agency authorized under s. 16.71 (1m) to enter into a contract for materials, supplies, equipment, or contractual services relating to information technology to include in each contract with a vendor of information technology that involves a large, high-risk information technology project under sub. (10) or that has a projected cost greater than $1,000,000 a stipulation requiring the vendor to submit to the department for approval any order or amendment that would change the scope of the contract and have the effect of increasing the contract price. The stipulation shall authorize the department to review the original contract and the order or amendment to determine all of the following and, if necessary, to negotiate with the vendor regarding any change to the original contract price:

SB40-CSA1,60,22 1. Whether the work proposed in the order or amendment is within the scope of the original contract.

SB40-CSA1,60,23 2. Whether the work proposed in the order or amendment is necessary.

SB40-CSA1,61,3 (b) The department or an executive branch agency may exclude from a contract described in par. (a) the stipulation required under par. (a) if all of the following conditions are satisfied:

SB40-CSA1,61,5 1. Including such a stipulation would negatively impact contract negotiations or significantly reduce the number of bidders on the contract.

SB40-CSA1,61,10 2. If the exclusion is sought by an executive branch agency, that agency submits to the department a plain-language explanation of the reasons the stipulation was excluded and the alternative provisions the executive branch agency will include in the contract to ensure that the contract will be completed on time and within the contract budget.

SB40-CSA1,61,14 3. If the exclusion is sought by the department, the department prepares a plain-language explanation of the reasons the stipulation was excluded and the alternative provisions the department will include in the contract to ensure that the contract will be completed on time and within the contract budget.

SB40-CSA1,61,21 4. The department submits for approval by the joint committee on information policy and technology any explanation and alternative contract provisions required under subd. 2. or 3. If, within 14 working days after the date that the department submits any explanation and alternative contract provisions required under this subdivision, the joint committee on information policy and technology does not contact the department, the explanation and alternative contract provisions shall be deemed approved.

SB40-CSA1,62,2 (14) (a) Require each executive branch agency, other than the Board of Regents of the University of Wisconsin system, that has entered into an open-ended contract for the development of information technology to submit to the department quarterly reports documenting the amount expended on the information technology development project. In this subsection, "open-ended contract" means a contract for information technology that includes one or both of the following:

SB40-CSA1,62,4 1. Stipulations that provide that the contract vendor will deliver information technology products or services but that do not specify a maximum payment amount.

SB40-CSA1,62,7 2. Stipulations that provide that the contract vendor shall be paid an hourly wage but that do not set a maximum limit on the number of hours required to complete the information technology project.

SB40-CSA1,62,9 (b) Compile and annually submit to the joint committee on information technology the reports required under par. (a).

SB40-CSA1, s. 128u Section 128u. 16.973 (15) of the statutes is created to read:

SB40-CSA1,62,13 16.973 (15) Post on its Internet site and periodically revise as necessary all of the following pertaining to information technology services and projects provided, managed, or supervised by the department:

SB40-CSA1,62,14 (a) The total anticipated cost of each information technology service or project.

SB40-CSA1,62,16 (b) The total amount that will be assessed by the department for the information technology service or project.

SB40-CSA1,62,22 (c) Whether a flat rate or fee-for-service billing method will be utilized by the department for the information technology service or project and the amount that will be assessed to any agency, any authority, any unit of the federal government, any local governmental unit, or any entity in the private sector that receives information technology services or enters into an information technology project with the department using that billing method.

SB40-CSA1, s. 128v Section 128v. 16.973 (16) of the statutes is created to read:

SB40-CSA1,63,4 16.973 (16) No later than March 1 and September 1 of each year, submit to the joint committee on information policy and technology a report that documents for each executive branch agency information technology project with an actual or projected cost greater than $1,000,000 or that the department of administration has identified as a large, high-risk information technology project under sub. (10) (a) all of the following:

SB40-CSA1,63,5 (a) Original and updated project cost projections.

SB40-CSA1,63,7 (b) Original and updated completion dates for the project and any stage of the project.

SB40-CSA1,63,9 (c) An explanation for any variation between the original and updated costs and completion dates under pars. (a) and (b).

SB40-CSA1,63,11 (d) A copy of any contract entered into by the department for the project and not provided in a previous report.

SB40-CSA1,63,12 (e) All sources of funding for the project.

SB40-CSA1,63,14 (f) The amount of any funding provided for the project through a master lease under s. 16.76 (4).

SB40-CSA1,63,16 (g) Information about the status of the project, including any portion of the project that has been completed.

SB40-CSA1,63,18 (h) Any other information about the project, or related information technology projects, requested by the joint committee on information policy and technology.

SB40-CSA1, s. 128w Section 128w. 16.974 (2) of the statutes is amended to read:

SB40-CSA1,64,2 16.974 (2) Subject to s. 16.972 (2) (b), enter into and enforce an agreement with any agency, any authority, any unit of the federal government, any local governmental unit, or any entity in the private sector to provide services authorized to be provided by the department to that agency, authority, unit, or entity at a cost specified in the agreement. Assessments and charges for information technology projects may not exceed 110 percent of the amount appropriated for the project or the estimated costs of the project, whichever is less.

SB40-CSA1, s. 129 Section 129. 16.997 (6) of the statutes is repealed.

SB40-CSA1, s. 131 Section 131. 17.13 (intro.) of the statutes is amended to read:

SB40-CSA1,64,8 17.13 Removal of village, town, town sanitary district, school district, and technical college and family care district officers. (intro.) Officers of towns, town sanitary districts, villages, school districts, and technical college districts and family care districts may be removed as follows:

SB40-CSA1, s. 132 Section 132. 17.13 (4) of the statutes is repealed.

SB40-CSA1, s. 133 Section 133. 17.15 (5) of the statutes is amended to read:

SB40-CSA1,64,13 17.15 (5) Family Long-term care district. Any member of a family long-term care district governing board appointed under s. 46.2895 (3) (a) 2. may be removed by the appointing authority for cause.

SB40-CSA1, s. 134 Section 134. 17.27 (3m) of the statutes is amended to read:

SB40-CSA1,64,18 17.27 (3m) Family Long-term care district board. If a vacancy occurs in the position of any appointed member of a family long-term care district board, the appointing authority shall appoint to serve for the residue of the unexpired term a person who meets the applicable requirements under s. 46.2895 (3) (b).

SB40-CSA1, s. 135 Section 135. 18.01 (1) of the statutes is renumbered 18.01 (1m).

SB40-CSA1, s. 136 Section 136. 18.01 (1e) of the statutes is created to read:

SB40-CSA1,64,22 18.01 (1e) "Aggregate expected debt service and net exchange payments" means the sum of the following:

SB40-CSA1,64,24 (a) The aggregate net payments expected to be made and received under a specified interest exchange agreement under s. 18.06 (8) (a).

SB40-CSA1,65,2 (b) The aggregate debt service expected to be made on bonds related to that agreement.

SB40-CSA1,65,5 (c) The aggregate net payments expected to be made and received under all other interest exchange agreements under s. 18.06 (8) (a) relating to those bonds that are in force at the time of executing the agreement.

SB40-CSA1, s. 137 Section 137. 18.01 (4) (intro.) of the statutes is amended to read:

SB40-CSA1,65,9 18.01 (4) (intro.) "Public debt" or "debt" means every voluntary, unconditional undertaking by the state, other than an operating note or an interest exchange agreement, to repay a sum certain:

SB40-CSA1, s. 138 Section 138. 18.06 (8) (a) of the statutes is renumbered 18.06 (8) (a) (intro.) and amended to read:

SB40-CSA1,65,19 18.06 (8) (a) (intro.) The Subject to pars. (am) and (ar), at the time of, or in anticipation of, contracting public debt and at any time thereafter while the public debt is outstanding, the commission may enter into agreements and ancillary arrangements for relating to the public debt, including liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements , or interest exchange agreements. The commission shall determine all of the following, if applicable, with respect to any such agreement or ancillary arrangement:

SB40-CSA1, s. 139 Section 139. 18.06 (8) (a) 1. of the statutes is created to read:

SB40-CSA1,65,23 18.06 (8) (a) 1. For any payment to be received with respect to the agreement or ancillary arrangement, whether the payment will be deposited into the bond security and redemption fund or the capital improvement fund.

SB40-CSA1, s. 140 Section 140. 18.06 (8) (a) 2. of the statutes is created to read:

SB40-CSA1,66,4 18.06 (8) (a) 2. For any payment to be made with respect to the agreement or ancillary arrangement, whether the payment will be made from the bond security and redemption fund or the capital improvement fund and the timing of any transfer of funds.

SB40-CSA1, s. 141 Section 141. 18.06 (8) (am) of the statutes is created to read:

SB40-CSA1,66,7 18.06 (8) (am) With respect to any interest exchange agreement or agreements specified in par. (a), all of the following shall apply:

SB40-CSA1,66,10 1. The commission shall contract with an independent financial consulting firm to determine if the terms and conditions of the agreement reflect a fair market value, as of the proposed date of the execution of the agreement.

SB40-CSA1,66,14 2. The interest exchange agreement must identify by maturity, bond issue, or bond purpose the debt or obligation to which the agreement is related. The determination of the commission included in an interest exchange agreement that such agreement relates to a debt or obligation shall be conclusive.

SB40-CSA1,66,19 3. The resolution authorizing the commission to enter into any interest exchange agreement shall require that the terms and conditions of the agreement reflect a fair market value as of the date of execution of the agreement, as reflected by the determination of the independent financial consulting firm under subd. 1., and shall establish guidelines for any such agreement, including the following:

SB40-CSA1,66,20 a. The conditions under which the commission may enter into the agreements.

SB40-CSA1,66,21 b. The form and content of the agreements.

SB40-CSA1,66,22 c. The aspects of risk exposure associated with the agreements.

SB40-CSA1,66,23 d. The standards and procedures for counterparty selection.

SB40-CSA1,66,25 e. The standards for the procurement of, and the setting aside of reserves, if any, in connection with, the agreements.

SB40-CSA1,67,2 f. The provisions, if any, for collateralization or other requirements for securing any counterparty's obligations under the agreements.

SB40-CSA1,67,4 g. A system for financial monitoring and periodic assessment of the agreements.

SB40-CSA1, s. 142 Section 142. 18.06 (8) (ar) of the statutes is created to read:

SB40-CSA1,67,8 18.06 (8) (ar) 1. Subject to subd. 2., the terms and conditions of an interest exchange agreement under par. (a) shall not be structured so that, as of the trade date of the agreement, both of the following are reasonably expected to occur:

SB40-CSA1,67,13 a. The aggregate expected debt service and net exchange payments relating to the agreement during the fiscal year in which the trade date occurs will be less than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable during that fiscal year if the agreement is not executed.

SB40-CSA1,67,17 b. The aggregate expected debt service and net exchange payments relating to the agreement in subsequent fiscal years will be greater than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable in those fiscal years if the agreement is not executed.

SB40-CSA1,67,18 2. Subd. 1. shall not apply if either of the follow occurs:

SB40-CSA1,67,22 a. The commission receives a determination by the independent financial consulting firm under par. (am) 1. that the terms and conditions of the agreement reflect payments by the state that represent on-market rates as of the trade date for the particular type of agreement.

SB40-CSA1,68,2 b. The commission provides written notice to the joint committee on finance of its intention to enter into an agreement that is reasonably expected to satisfy subd. 1., and the joint committee on finance either approves or disapproves, in writing, the commission's entering into the agreement within 14 days of receiving the written notice from the commission.

SB40-CSA1,68,5 3. This paragraph shall not limit the liability of the state under an agreement if actual contracted net exchange payments in any fiscal year are less than or exceed original expectations.

SB40-CSA1, s. 143 Section 143. 18.06 (8) (b) of the statutes is amended to read:

SB40-CSA1,68,9 18.06 (8) (b) The commission may delegate to other persons the authority and responsibility to take actions necessary and appropriate to implement agreements and ancillary arrangements under par. pars. (a) and (am).

SB40-CSA1, s. 144 Section 144. 18.06 (8) (d) of the statutes is created to read:

SB40-CSA1,68,15 18.06 (8) (d) Semiannually, during any year in which the state is a party to an agreement entered into pursuant to par. (a) (intro.), the department of administration shall submit a report to the commission and to the cochairpersons of the joint committee on finance listing all such agreements. The report shall include all of the following:

SB40-CSA1,68,17 1. A description of each agreement, including a summary of its terms and conditions, rates, maturity, and the estimated market value of each agreement.

SB40-CSA1,68,19 2. An accounting of amounts that were required to be paid and received on each agreement.

SB40-CSA1,68,21 3. Any credit enhancement, liquidity facility, or reserves, including an accounting of the costs and expenses incurred by the state.

SB40-CSA1,68,22 4. A description of the counterparty to each agreement.

SB40-CSA1,68,24 5. A description of the counterparty risk, the termination risk, and other risks associated with each agreement.

SB40-CSA1, s. 145 Section 145. 18.08 (1) (a) of the statutes is renumbered 18.08 (1) (a) (intro.) and amended to read:

SB40-CSA1,69,7 18.08 (1) (a) (intro.) All moneys resulting from the contracting of public debt or any payment to be received with respect to any agreement or ancillary arrangement entered into under s. 18.06 (8) (a) with respect to any such public debt shall be credited to a separate and distinct fund, established in the state treasury, designated as the capital improvement fund, except that such:

SB40-CSA1,69,11 1. Such moneys which represent premium and accrued interest on bonds or notes issued, or are for purposes of funding or refunding bonds pursuant to s. 18.06 (5), shall be credited to one or more of the sinking funds of the bond security and redemption fund or to the state building trust fund.