2009 - 2010 LEGISLATURE
March 23, 2010 - Offered by Representative Jorgensen.
AB792-ASA1,1,11 1An Act to renumber and amend 16.705 (1), 16.705 (2), 16.705 (6) and 16.87 (2);
2to amend 16.705 (7), 16.705 (8) (a), 16.75 (1) (b), 16.75 (2m) (b), 16.75 (6) (c),
325.18 (1) (a), 25.18 (1) (f), 25.18 (1) (m), 84.01 (13), 84.01 (31), 84.06 (2) (a), 84.06
4(3), 84.06 (4), 85.015, 102.81 (2), 165.08, 165.25 (11), 221.0903 (4) (b), 801.02 (1),
5803.09 (1) and (2), 804.01 (2) (intro.), 805.04 (2m) and 893.981; and to create
616.42 (1) (h), 16.46 (10), 16.705 (1) (a) 3., (b) and (c), 16.705 (2) (a) 3., (b) and (c),
716.705 (4), 16.705 (5g), (5m) and (5r), 16.705 (6) (a), 16.705 (8) (am), 16.705 (9),
816.75 (1) (a) 4., 16.771, 16.871, 20.932, 66.0902, 84.01 (13m) and 85.65 of the
9statutes; relating to: state contractual services and false claims submitted to
10state and local governments, requiring the exercise of rule-making authority,
11and providing penalties.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB792-ASA1, s. 1
1Section 1. 16.42 (1) (h) of the statutes is created to read:
AB792-ASA1,2,52 16.42 (1) (h) 1. The total amount of contracted positions, including the number
3of service hours and recurring service rate payments, providing services for the
4agency that are paid from the agency's base level funding and an identification of the
5appropriation or appropriations used to fund the contract expenditures.
AB792-ASA1,2,76 2. The total amount of agency base level funding used to pay for the contracted
7positions under subd. 1.
AB792-ASA1,2,108 3. The amount of funding requested for contracted positions identified under
9subd. 1 and an identification of the appropriation or appropriations that will be used
10to fund the contracted positions.
AB792-ASA1, s. 2 11Section 2. 16.46 (10) of the statutes is created to read:
AB792-ASA1,2,1512 16.46 (10) (a) A statement of the number of contracted positions providing
13services for each state agency that are paid from the agency's base level funding and
14an identification of the appropriation or appropriations used to fund the contracted
AB792-ASA1,2,1716 (b) A statement of the total amount of each state agency's base level funding
17used to pay for the contracted positions.
AB792-ASA1,2,2018 (c) A statement of the amount of funding requested by state agencies for
19contracted positions and an identification of the appropriation or appropriations that
20will be used to fund the contracted positions.
AB792-ASA1, s. 3 21Section 3. 16.705 (1) of the statutes is renumbered 16.705 (1) (a) (intro.) and
22amended to read:
AB792-ASA1,2,2423 16.705 (1) (a) (intro.) The department or its agents may contract for services
24which if at least 2 of the following conditions apply:
AB792-ASA1,2,25 251. The services can be performed more economically or by contract.
12. When considering expertise of the current full-time positions, whether filled
2or vacant, the services can be performed more
efficiently by such contract than by use
3of employees in those positions
AB792-ASA1,3,5 4(d) The department shall, by rule, prescribe uniform procedures for
5determining whether services are appropriate for contracting under this subsection.
AB792-ASA1, s. 4 6Section 4. 16.705 (1) (a) 3., (b) and (c) of the statutes are created to read:
AB792-ASA1,3,87 16.705 (1) (a) 3. When considering timeliness of delivery, the services can be
8performed more efficiently by contract.
AB792-ASA1,3,119 (b) Notwithstanding par. (a), the department or its agents may contract for any
10services if the contract will be for a period that is not more than one year and if the
11contract is not eligible for renewal.
AB792-ASA1,3,1212 (c) No contract under this section may be automatically renewed.
AB792-ASA1, s. 5 13Section 5. 16.705 (2) of the statutes is renumbered 16.705 (2) (a) (intro.) and
14amended to read:
AB792-ASA1,3,1715 16.705 (2) (a) (intro.) The department shall promulgate rules for the
16procurement of contractual services by the department and its designated agents,
17including but not limited to rules the following:
AB792-ASA1,3,19 181. Rules prescribing approval and monitoring processes for contractual service
AB792-ASA1,4,9 202. Except as provided in par. (b), a requirement for agencies to conduct a
21uniform cost-benefit analysis of each proposed contractual service procurement
22involving an estimated expenditure of more than $25,000 $50,000 in accordance with
23standards prescribed in the rules, and, except as provided in par. (b), a requirement
24for agencies to review periodically, and before any renewal, the continued
25appropriateness of contracting under each contractual services agreement involving

1an estimated expenditure of more than $25,000 $50,000. The rules shall require the
2cost-benefit analysis or continued appropriateness review to compare the costs of
3using a current employee who is providing, or who would provide, the service, or a
4similarly situated employee if the current position is vacant, to the costs of using an
5employee under a contract and shall require the comparison to include all relevant
6costs including the salary and fringe benefit costs, costs of any training that will be
7necessary to fulfill the task, materials, inspections, unemployment insurance,
8transitional costs, liability insurance, overhead, facility costs, taxes, and other
9incidental costs
AB792-ASA1,4,18 10(d) Each officer requesting approval to engage any person to perform
11contractual services shall submit to the department written justification for such
12contracting which shall include a description of the contractual services to be
13procured, justification of need, justification for not contracting with other agencies,
14a specific description of the scope of contractual services to be performed, and
15justification for the procurement process if a process other than competitive bidding
16is to be used. The department may not approve any contract for contractual services
17unless it is satisfied that the justification for contracting conforms to the
18requirements of this section and ss. 16.71 to 16.77.
AB792-ASA1, s. 6 19Section 6. 16.705 (2) (a) 3., (b) and (c) of the statutes are created to read:
AB792-ASA1,4,2320 16.705 (2) (a) 3. A requirement that each agency that contracts for services
21under this section perform periodic audits on cost-benefit analyses or continued
22appropriateness reviews and contracts that required a cost-benefit analysis or
23continued appropriateness review.
AB792-ASA1,4,2524 (b) 1. A cost-benefit analysis or continued appropriateness review is not
25required for the following services:
1a. Services that federal or state law requires to be performed by contract.
AB792-ASA1,5,22 b. Services that are incidental to the purchase of a commodity.
AB792-ASA1,5,53 c. Services that are substantially dissimilar to services performed by state
4employees or that state employees have not performed historically and are not able
5to perform without significant retraining or investment in infrastructure or capital.
AB792-ASA1,5,86 d. Services that must be provided per a contract, license, or warranty by the
7original equipment manufacturer or publisher unless the contract, license, or
8warranty has expired or is no longer valid.
AB792-ASA1,5,129 2. If an agency is exempted from the cost-benefit analysis or continued
10appropriateness review under subd. 1. c. only, the department must include in the
11report submitted under sub. (8) the services that the agency determined were exempt
12under subd. 1. c.
AB792-ASA1,5,1413 (c) 1. Neither a cost-benefit analysis nor a continued appropriateness review
14may be conducted by contract.
AB792-ASA1,5,1615 2. A cost-benefit analysis may not be shown to a bidder prior to the issuance
16of a letter of intent to contract.
AB792-ASA1, s. 7 17Section 7. 16.705 (4) of the statutes is created to read:
AB792-ASA1,6,218 16.705 (4) Any person submitting a bid or proposal or a labor organization that
19is certified under subch. V of ch. 111 to be the representative of the appropriate
20collective bargaining unit that is aggrieved by a solicitation for bids or by a letter of
21intent to contract may protest to the agency that solicited or awarded the contractual
22services. The protesting party shall file a written notice of intent to protest with, or
23send an electronic notice of intent to protest to, the agency that solicited or awarded
24the contractual services within 7 working days after the solicitation or the letter,
25whichever is appropriate, and shall serve a written or send an electronic protest

1within 12 working days after issuance of the solicitation or the letter, whichever is
AB792-ASA1, s. 8 3Section 8. 16.705 (5g), (5m) and (5r) of the statutes are created to read:
AB792-ASA1,6,64 16.705 (5g) All contracts for contractual services must provide notice of the
5rules promulgated by the division of legal services under sub. (5m) (a) and of the
6requirements under sub. (5r).
AB792-ASA1,6,8 7(5m) The division of legal services shall promulgate rules on all of the
AB792-ASA1,6,129 (a) Actions by the person performing the contractual services that would result
10in the agency for which contractual services are performed recovering any
11expenditures for those contractual services that the agency paid to the person
12performing the contractual services.
AB792-ASA1,6,1413 (b) Standard performance measures, including quantifiable benchmark
14indicators, to evaluate persons performing contractual services.
AB792-ASA1,6,1615 (c) Signing bonuses, reimbursements, and per diem costs included in all
16contracts for contractual services.
AB792-ASA1,6,22 17(5r) (a) 1. If the cost of the contractual services exceeds $25,000, any
18expenditures of the person performing the contractual services that exceed its
19original bid by 10 percent or more may not be paid unless the agency for which the
20contractual services are performed notifies the governor and the joint committee on
21finance the amount by which the cost exceeds the original bid and the reason for the
AB792-ASA1,7,223 2. Subdivision 1. does not apply to contractual services purchased for the
24University of Wisconsin System, or for any University of Wisconsin System campus
25or institution, if the contractual services are for research or instructional purposes,

1as determined by the University of Wisconsin System or the campus or institution,
2whichever is appropriate.
AB792-ASA1,7,83 (b) No person performing contractual services under this section may provide
4any salary increase if the salary increase would result in greater expenditures for the
5agency for which the contractual services are performed than the amounts specified
6in the original bid. This restriction under this paragraph on salary increases does
7not apply if the salary increase is in accordance with the terms of a collective
8bargaining agreement.
AB792-ASA1, s. 9 9Section 9. 16.705 (6) of the statutes is renumbered 16.705 (6) (b) and amended
10to read: