2009 - 2010 LEGISLATURE
April 6, 2010 - Offered by Representative Jorgensen.
AB792-ASA2,1,11 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), 103.50 (2), 165.08, 165.25 (11), 221.0903 (4) (b),
5801.02 (1), 803.09 (1) and (2), 804.01 (2) (intro.), 805.04 (2m) and 893.981; and
6to create 16.42 (1) (h), 16.46 (10), 16.705 (1) (a) 3., (b) and (c), 16.705 (2) (a) 3.,
7(b) and (c), 16.705 (4), 16.705 (5g), (5m) and (5r), 16.705 (6) (a), 16.705 (8) (am),
816.705 (9), 16.75 (1) (a) 4., 16.771, 16.871, 20.932, 66.0902, 84.01 (13m) and
985.65 of the statutes; relating to: state contractual services and false claims
10submitted to state and local governments, requiring the exercise of
11rule-making authority, and providing penalties.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB792-ASA2, s. 1
1Section 1. 16.42 (1) (h) of the statutes is created to read:
AB792-ASA2,2,112 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. In
6preparing this information, agencies shall use actual salary and service hour data,
7if available. If such data are not available, the agency may use estimates. Any
8estimate relying on state employee salary data for comparable work shall be
9accompanied by a detailed statement explaining why the use of state employee
10salary data is necessary and why such use does not misrepresent the salaries paid
11for contracted positions.
AB792-ASA2,2,1312 2. The total amount of agency base level funding used to pay for the contracted
13positions under subd. 1.
AB792-ASA2,2,1614 3. The amount of funding requested for contracted positions identified under
15subd. 1 and an identification of the appropriation or appropriations that will be used
16to fund the contracted positions.
AB792-ASA2, s. 2 17Section 2. 16.46 (10) of the statutes is created to read:
AB792-ASA2,2,2118 16.46 (10) (a) A statement of the number of contracted positions providing
19services for each state agency that are paid from the agency's base level funding and
20an identification of the appropriation or appropriations used to fund the contracted
AB792-ASA2,2,2322 (b) A statement of the total amount of each state agency's base level funding
23used to pay for the contracted positions.
1(c) A statement of the amount of funding requested by state agencies for
2contracted positions and an identification of the appropriation or appropriations that
3will be used to fund the contracted positions.
AB792-ASA2, s. 3 4Section 3. 16.705 (1) of the statutes is renumbered 16.705 (1) (a) (intro.) and
5amended to read:
AB792-ASA2,3,76 16.705 (1) (a) (intro.) The department or its agents may contract for services
7which if at least 2 of the following conditions apply:
AB792-ASA2,3,8 81. The services can be performed more economically or by contract.
AB792-ASA2,3,11 92. When considering expertise of the current full-time positions, whether filled
10or vacant, the services can be performed more
efficiently by such contract than by use
11of employees in those positions
AB792-ASA2,3,13 12(d) The department shall, by rule, prescribe uniform procedures for
13determining whether services are appropriate for contracting under this subsection.
AB792-ASA2, s. 4 14Section 4. 16.705 (1) (a) 3., (b) and (c) of the statutes are created to read:
AB792-ASA2,3,1615 16.705 (1) (a) 3. When considering timeliness of delivery, the services can be
16performed more efficiently by contract.
AB792-ASA2,3,1917 (b) Notwithstanding par. (a), the department or its agents may contract for any
18services if the contract will be for a period that is not more than one year and if the
19contract is not eligible for renewal.
AB792-ASA2,3,2020 (c) No contract under this section may be automatically renewed.
AB792-ASA2, s. 5 21Section 5. 16.705 (2) of the statutes is renumbered 16.705 (2) (a) (intro.) and
22amended to read:
AB792-ASA2,3,2523 16.705 (2) (a) (intro.) The department shall promulgate rules for the
24procurement of contractual services by the department and its designated agents,
25including but not limited to rules the following:
11. Rules prescribing approval and monitoring processes for contractual service
AB792-ASA2,4,17 32. Except as provided in par. (b), a requirement for agencies to conduct a
4uniform cost-benefit analysis of each proposed contractual service procurement
5involving an estimated expenditure of more than $25,000 $50,000 in accordance with
6standards prescribed in the rules, and, except as provided in par. (b), a requirement
7for agencies to review periodically, and before any renewal, the continued
8appropriateness of contracting under each contractual services agreement involving
9an estimated expenditure of more than $25,000 $50,000. The rules shall require the
10cost-benefit analysis or continued appropriateness review to compare the costs of
11using a current employee who is providing, or who would provide, the service, or a
12similarly situated employee if the current position is vacant, to the costs of using an
13employee under a contract and shall require the comparison to include all relevant
14costs including the salary and fringe benefit costs, costs of any training that will be
15necessary to fulfill the task, materials, inspections, unemployment insurance,
16transitional costs, liability insurance, overhead, facility costs, taxes, and other
17incidental costs
AB792-ASA2,5,2 18(d) Each officer requesting approval to engage any person to perform
19contractual services shall submit to the department written justification for such
20contracting which shall include a description of the contractual services to be
21procured, justification of need, justification for not contracting with other agencies,
22a specific description of the scope of contractual services to be performed, and
23justification for the procurement process if a process other than competitive bidding
24is to be used. The department may not approve any contract for contractual services

1unless it is satisfied that the justification for contracting conforms to the
2requirements of this section and ss. 16.71 to 16.77.
AB792-ASA2, s. 6 3Section 6. 16.705 (2) (a) 3., (b) and (c) of the statutes are created to read:
AB792-ASA2,5,74 16.705 (2) (a) 3. A requirement that each agency that contracts for services
5under this section perform periodic audits on cost-benefit analyses or continued
6appropriateness reviews and contracts that required a cost-benefit analysis or
7continued appropriateness review.
AB792-ASA2,5,98 (b) 1. A cost-benefit analysis or continued appropriateness review is not
9required for the following services:
AB792-ASA2,5,1010 a. Services that federal or state law requires to be performed by contract.
AB792-ASA2,5,1111 b. Services that are incidental to the purchase of a commodity.
AB792-ASA2,5,1412 c. Services that are substantially dissimilar to services performed by state
13employees or that state employees have not performed historically and are not able
14to perform without significant retraining or investment in infrastructure or capital.
AB792-ASA2,5,1715 d. Services that must be provided per a contract, license, or warranty by the
16original equipment manufacturer or publisher unless the contract, license, or
17warranty has expired or is no longer valid.
AB792-ASA2,5,2118 2. If an agency is exempted from the cost-benefit analysis or continued
19appropriateness review under subd. 1. c. only, the department must include in the
20report submitted under sub. (8) the services that the agency determined were exempt
21under subd. 1. c.
AB792-ASA2,5,2322 (c) 1. Neither a cost-benefit analysis nor a continued appropriateness review
23may be conducted by contract.
AB792-ASA2,5,2524 2. A cost-benefit analysis may not be shown to a bidder prior to the issuance
25of a letter of intent to contract.
AB792-ASA2, s. 7
1Section 7. 16.705 (4) of the statutes is created to read:
AB792-ASA2,6,112 16.705 (4) Any person submitting a bid or proposal or a labor organization that
3is certified under subch. V or VI of ch. 111 to be the representative of the appropriate
4collective bargaining unit that is aggrieved by a solicitation for bids or by a letter of
5intent to contract may protest to the agency that solicited or awarded the contractual
6services. The protesting party shall file a written notice of intent to protest with, or
7send an electronic notice of intent to protest to, the agency that solicited or awarded
8the contractual services within 7 working days after the solicitation or the letter,
9whichever is appropriate, and shall serve a written or send an electronic protest
10within 12 working days after issuance of the solicitation or the letter, whichever is
AB792-ASA2, s. 8 12Section 8. 16.705 (5g), (5m) and (5r) of the statutes are created to read:
AB792-ASA2,6,1513 16.705 (5g) All contracts for contractual services must provide notice of the
14rules promulgated by the division of legal services under sub. (5m) (a) and of the
15requirements under sub. (5r).
AB792-ASA2,6,17 16(5m) The division of legal services shall promulgate rules on all of the
AB792-ASA2,6,2118 (a) Actions by the person performing the contractual services that would result
19in the agency for which contractual services are performed recovering any
20expenditures for those contractual services that the agency paid to the person
21performing the contractual services.
AB792-ASA2,6,2322 (b) Standard performance measures, including quantifiable benchmark
23indicators, to evaluate persons performing contractual services.
AB792-ASA2,6,2524 (c) Signing bonuses, reimbursements, and per diem costs included in all
25contracts for contractual services.
1(5r) (a) 1. If the cost of the contractual services exceeds $25,000, any
2expenditures of the person performing the contractual services that exceed its
3original bid by 10 percent or more may not be paid unless the agency for which the
4contractual services are performed notifies the governor and the joint committee on
5finance the amount by which the cost exceeds the original bid and the reason for the
AB792-ASA2,7,117 2. Subdivision 1. does not apply to contractual services purchased for the
8University of Wisconsin System, or for any University of Wisconsin System campus
9or institution, if the contractual services are for research or instructional purposes,
10as determined by the University of Wisconsin System or the campus or institution,
11whichever is appropriate.
AB792-ASA2,7,1712 (b) No person performing contractual services under this section may provide
13any salary increase if the salary increase would result in greater expenditures for the
14agency for which the contractual services are performed than the amounts specified
15in the original bid. This restriction under this paragraph on salary increases does
16not apply if the salary increase is in accordance with the terms of a collective
17bargaining agreement.
AB792-ASA2, s. 9 18Section 9. 16.705 (6) of the statutes is renumbered 16.705 (6) (b) and amended
19to read: