Amendment SSA1-SB447

SB447-SSA1, s. 8 Section 8. 16.705 (5g), (5m) and (5r) of the statutes are created to read:

SB447-SSA1,6,12 16.705 (5g) All contracts for contractual services must provide notice of the rules promulgated by the division of legal services under sub. (5m) (a) and of the requirements under sub. (5r).

SB447-SSA1,6,14 (5m) The division of legal services shall promulgate rules on all of the following:

SB447-SSA1,6,18 (a) Actions by the person performing the contractual services that would result in the agency for which contractual services are performed recovering any expenditures for those contractual services that the agency paid to the person performing the contractual services.

SB447-SSA1,6,20 (b) Standard performance measures, including quantifiable benchmark indicators, to evaluate persons performing contractual services.

SB447-SSA1,6,22 (c) Signing bonuses, reimbursements, and per diem costs included in all contracts for contractual services.

SB447-SSA1,7,3 (5r) (a) 1. If the cost of the contractual services exceeds $25,000, any expenditures of the person performing the contractual services that exceed its original bid by 10 percent or more may not be paid unless the agency for which the contractual services are performed notifies the governor and the joint committee on finance the amount by which the cost exceeds the original bid and the reason for the increase.

SB447-SSA1,7,8 2. Subdivision 1. does not apply to contractual services purchased for the University of Wisconsin System, or for any University of Wisconsin System campus or institution, if the contractual services are for research or instructional purposes, as determined by the University of Wisconsin System or the campus or institution, whichever is appropriate.

SB447-SSA1,7,14 (b) No person performing contractual services under this section may provide any salary increase if the salary increase would result in greater expenditures for the agency for which the contractual services are performed than the amounts specified in the original bid. This restriction under this paragraph on salary increases does not apply if the salary increase is in accordance with the terms of a collective bargaining agreement.

SB447-SSA1, s. 9 Section 9. 16.705 (6) of the statutes is renumbered 16.705 (6) (b) and amended to read:

SB447-SSA1,7,24 16.705 (6) (b) If the agency for which contractual services are performed under a contractual services agreement concludes under par. (a) that the performance was unsatisfactory, recovers expenditures because the contractor's actions were listed in the rules developed under sub. (5m) (a), or concludes that the performance was unsatisfactory based on factors the agency considers, the agency shall file with the department an evaluation of stating that the contractor's performance was unsatisfactory within 60 days after the fulfillment of the agreement. The evaluation shall be in such form as the secretary may require.

SB447-SSA1, s. 10 Section 10. 16.705 (6) (a) of the statutes is created to read:

SB447-SSA1,8,4 16.705 (6) (a) An agency for which contractual services are performed under a contractual services agreement shall evaluate the contractual services using the standard performance measures and benchmark indicators created under sub. (5m) (b). No contract may be renewed until the agency completes the evaluation.

SB447-SSA1, s. 11 Section 11. 16.705 (7) of the statutes is amended to read:

SB447-SSA1,8,9 16.705 (7) The department shall review evaluations submitted under sub. (6) (b) and promulgate rules prescribing procedures to assure that future contracts for contractual services are not awarded to contractors whose past performance is found to be unsatisfactory, to the extent feasible.

SB447-SSA1, s. 12 Section 12. 16.705 (8) (a) of the statutes is amended to read:

SB447-SSA1,8,12 16.705 (8) (a) A summary of the cost-benefit analyses completed by agencies in compliance with rules promulgated by the department under sub. (2) (a).

SB447-SSA1, s. 13 Section 13. 16.705 (8) (am) of the statutes is created to read:

SB447-SSA1,8,16 16.705 (8) (am) As provided under sub. (2) (b) 2., any services on which agencies would have had to perform a cost-benefit analysis or a continued appropriateness review but for the exemption under sub. (2) (b) 1. c.

SB447-SSA1, s. 14 Section 14. 16.705 (9) of the statutes is created to read:

SB447-SSA1,8,20 16.705 (9) (a) In this subsection, "federal economic stimulus funds" means federal moneys received by the state, pursuant to federal legislation enacted during the 111th Congress for the purpose of reviving the economy of the United States.

SB447-SSA1,9,2 (b) Except as provided in pars. (c) and (d), if in any fiscal year an agency in the executive branch is prohibited from hiring employees to fill vacant positions or its employees are required to serve an unpaid leave of absence, the agency may not enter into, renew, or extend any contractual services contracts with private contractors or consultants for the remainder of that fiscal year for the performance of services of agency employees who would have performed the services had they been hired or had they not have been required to take an unpaid leave of absence.

SB447-SSA1,9,9 (c) Paragraph (b) shall not apply to contractual services contracts that are funded with federal economic stimulus funds and the secretary determines that any deadlines imposed by the federal government on the expenditure of the federal economic stimulus funds cannot be met without an agency's entering into, renewing, or extending a contractual services contract or a cost-benefit analysis is conducted that demonstrates that a contractual services contract would be more cost effective and efficient than having state employees perform the services.

SB447-SSA1,9,11 (cm) Paragraph (b) shall not apply to contracts entered into, renewed, or extended under s. 977.08.

SB447-SSA1,9,20 (d) An agency in the executive branch may submit a written request to the joint committee on finance to have par. (b) not apply to the agency with respect to a specific contractual services contract. If the cochairpersons of the committee do not notify the agency within 14 working days after the date of the agency's submittal that the committee intends to schedule a meeting to review the request, approval of the request is granted. If, within 14 working days after the date of the agency's request submittal, the cochairpersons of the committee notify the agency that the committee intends to schedule a meeting to review the request, the request may be granted only as approved by the committee.

SB447-SSA1, s. 15 Section 15. 16.75 (1) (a) 4. of the statutes is created to read:

SB447-SSA1,9,24 16.75 (1) (a) 4. The contracting agency shall electronically send the successful bidder a letter of intent to contract and shall send electronic copies of the letter to all other bidders.

SB447-SSA1, s. 16 Section 16. 16.75 (1) (b) of the statutes is amended to read:

SB447-SSA1,9,26 16.75 (1) (b) When the estimated cost exceeds $25,000, the department shall invite bids to be submitted. The department either shall either solicit sealed bids to be opened publicly at a specified date and time, or shall solicit bidding by auction to be conducted electronically at a specified date and time. Whenever bids are invited, due notice inviting bids shall may be published as a class 2 notice, under ch. 985 or, and notice inviting bids, including a copy of all documents soliciting bids, shall be posted on the Internet at a site determined or approved by the department. The bid opening or auction shall occur at least 7 days after the date of the last insertion of the notice or at least 7 days after the date of posting on the Internet. The notice under ch. 985, if applicable, and the Internet site shall specify whether sealed bids are invited or bids will be accepted by auction, and shall give a clear description of the materials, supplies, equipment, or contractual services to be purchased, the amount of any bond, share draft, check, or other draft to be submitted as surety with the bid or prior to the auction, and the date and time that the public opening or the auction will be held.

SB447-SSA1, s. 17 Section 17. 16.75 (2m) (b) of the statutes is amended to read:

SB447-SSA1,11,2 16.75 (2m) (b) When the estimated cost exceeds $25,000, the department may invite competitive sealed proposals by publishing a class 2 notice under ch. 985 or by posting and shall post notice, including all documents soliciting proposals, on the Internet at a site determined or approved by the department. The notice under ch. 985, if applicable, and the notice on the Internet site shall describe the materials, supplies, equipment, or contractual services to be purchased, the intent to make the procurement by solicitation of proposals rather than by solicitation of bids, any requirement for surety, and the date the proposals will be opened, which shall be at least 7 days after the date of the last insertion of the notice or at least 7 days after the date of posting on the Internet.

SB447-SSA1, s. 18 Section 18. 16.75 (6) (c) of the statutes is amended to read:

SB447-SSA1,11,16 16.75 (6) (c) If the secretary determines that it is in the best interest of this state to do so, he or she may, with the approval of the governor, waive the requirements of subs. (1) to (5) and may purchase supplies, material, equipment, or contractual services, other than printing and stationery, from a private source other than a source specified in par. (b). Except as provided in sub. (2g) (c), if the cost of the purchase is expected to exceed $25,000, the department shall may first publish a class 2 notice under ch. 985 or and shall post a notice on the Internet at the site determined or approved by the department under sub. (1) (b) describing the materials, supplies, equipment, or contractual services to be purchased, stating the intent to make the purchase from a private source without soliciting bids or competitive sealed proposals and stating the date on which the contract or purchase order will be awarded. The date of the award shall be at least 7 days after the date of the last insertion or the date of posting on the Internet.

SB447-SSA1, s. 19 Section 19. 16.771 of the statutes is created to read:

SB447-SSA1,11,19 16.771 False claims. (1) In this section, "contract" means any of the following:

SB447-SSA1,11,20 (a) Contracts or orders that are subject to s. 16.705.

SB447-SSA1,11,23 (b) Contracts or orders entered into for projects that are subject to s. 103.49 or 103.50 if the party presenting the false claim is alleged to have failed to comply with s. 103.49 or 103.50.

SB447-SSA1,12,5 (2) Whoever knowingly presents or causes to be presented a false claim for payment under a contract for materials, supplies, equipment, or services to be provided to an agency shall forfeit not less than $5,000 nor more than $10,000, plus 3 times the amount of the damages that were sustained by the state or would have been sustained by the state, whichever is greater, as a result of the false claim. The attorney general may bring an action on behalf of the state to recover any forfeiture incurred under this section.

SB447-SSA1, s. 20 Section 20. 16.87 (2) of the statutes is renumbered 16.87 (2) (a) and amended to read:

SB447-SSA1,12,13 16.87 (2) (a) A contract for engineering services or architectural services or a to be done for or furnished to the state or a department, board, commission, or officer of the state is exempt from the requirements of ss. 16.75 and 16.705, but an engineer or an architect employed at the department shall determine if the project could be completed more effectively and efficiently with state employees before a contract may be approved under sub. (3).

SB447-SSA1,12,17 (b) A contract involving an expenditure of $10,000 or more for construction work, or $30,000 or more for limited trades work, to be done for or furnished to the state or a department, board, commission, or officer of the state is exempt from the requirements of ss. 16.705 and 16.75.

SB447-SSA1,12,20 (c) The department shall attempt to ensure that 5% of the total amount expended under this section in each fiscal year is paid to minority businesses, as defined under s. 16.75 (3m) (a).

SB447-SSA1, s. 21 Section 21. 16.871 of the statutes is created to read:

SB447-SSA1,12,22 16.871 False claims. (1) In this section:

SB447-SSA1,12,23 (a) "Agency" has the meaning given in s. 16.70 (1e).

SB447-SSA1,12,24 (b) "Construction work" has the meaning given in s. 16.87 (1) (a).

SB447-SSA1,12,25 (bm) "Contract" has the meaning given in s. 16.771 (1).

SB447-SSA1,12,26 (c) "Limited trades work" has the meaning given in s. 16.70 (7).

SB447-SSA1,13,8 (2) Whoever knowingly presents or causes to be presented a false claim under any contract for construction work or limited trades work, or for engineering or architectural services, to be provided to any agency shall forfeit not less than $5,000 nor more than $10,000, plus 3 times the amount of the damages that were sustained by the state or would have been sustained by the state, whichever is greater, as a result of the false claim. The attorney general may bring an action on behalf of the state to recover any forfeiture incurred under this subsection.

SB447-SSA1, s. 22 Section 22. 20.932 of the statutes is created to read:

SB447-SSA1,13,10 20.932 False claims; actions by or on behalf of state. (1) In this section:

SB447-SSA1,13,11 (a) "Authority" has the meaning given in s. 16.70 (2).

SB447-SSA1,13,19 (b) "Claim" includes any request or demand for money, property, or services made to any officer, employee, or agent of this state, or to any contractor, grantee, or other recipient, whether or not under contract, if any portion of the money, property, or services that are requested or demanded is derived from state resources, or if the state is obligated to reimburse the contractor, grantee, or other recipient for any portion of the money, property, or services that are requested or demanded. "Claim" does not include any request or demand for medical assistance described under s. 20.931 (1) (b).

SB447-SSA1,13,20 (c) "Employer" includes all agencies and authorities.

SB447-SSA1,13,21 (d) "Knowingly" has the meaning given in s. 20.931 (1) (d).

SB447-SSA1,13,22 (e) "Proceeds" has the meaning given in s. 20.931 (1) (e).

SB447-SSA1,13,23 (f) "State public official" has the meaning given in s. 19.42 (14).

SB447-SSA1,14,2 (2) Except as provided in subs. (3) and (4), any person who does any of the following is liable to this state for 3 times the amount of the damages sustained by this state because of the actions of the person, and shall forfeit not less than $5,000 nor more than $10,000 for each violation:

SB447-SSA1,14,5 (a) Knowingly presents or causes to be presented to any officer, employee, or agent of this state, or to any contractor, grantee, or other recipient of state resources, a false claim for payment or approval.

SB447-SSA1,14,7 (b) Knowingly makes, uses, or causes to be made or used a false record or statement to obtain approval or payment of a false claim.

SB447-SSA1,14,11 (c) Conspires to defraud this state by obtaining allowance or payment of a false claim, or by knowingly making or using, or causing to be made or used, a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to this state.

SB447-SSA1,14,14 (d) Has possession, custody, or control of property used or to be used by this state and knowingly delivers or causes to be delivered less property than the amount for which the person receives a certificate or receipt.

SB447-SSA1,14,17 (e) Being authorized to make or deliver a document certifying receipt of property that is used or to be used by this state, knowingly makes or delivers a receipt that falsely represents the property that is used or to be used.

SB447-SSA1,14,20 (f) Knowingly buys or receives as a pledge for payment of an obligation or debt for this state property from any person who lawfully may not sell or pledge the property.

SB447-SSA1,14,23 (g) Knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease any obligation to pay or transmit money or property to this state.

SB447-SSA1,15,2 (h) Is a beneficiary of the submission of a false claim to any officer, employee, or agent of this state, or to any contractor, grantee, or other recipient of state resources, knows that the claim is false, and fails to disclose the false claim to this state within a reasonable time after the person becomes aware that the claim is false.

SB447-SSA1,15,6 (3) Except as provided in sub. (4), the court may assess against a person who violates sub. (2) not less than 2 nor more than 3 times the amount of the damages sustained by the state because of the acts of the person, and may not assess any forfeiture, if the court finds all of the following:

SB447-SSA1,15,9 (a) The person who commits the acts furnished the attorney general with all information known to the person about the acts within 30 days after the date on which the person obtained the information.

SB447-SSA1,15,10 (b) The person fully cooperated with any investigation of the acts by this state.

SB447-SSA1,15,14 (c) At the time that the person furnished the attorney general with information concerning the acts, no criminal prosecution or civil or administrative enforcement action had been commenced with respect to any such act, and the person did not have actual knowledge of the existence of any investigation into any such act.

SB447-SSA1,15,16 (4) Subsections (2) and (3) do not apply to any claim, record, statement, or return made under chs. 70 to 79.

SB447-SSA1,15,19 (5) (a) Except as provided in subs. (10) and (12), any person may bring a civil action as a qui tam plaintiff against a person who commits an act in violation of sub. (2) for the person and the state in the name of the state.

SB447-SSA1,16,2 (b) The plaintiff shall serve upon the attorney general a copy of the complaint and documents disclosing substantially all material evidence and information that the person possesses. The plaintiff shall file a copy of the complaint with the court for inspection in camera. Except as provided in par. (c), the complaint shall remain under seal for a period of 60 days from the date of filing, and shall not be served upon the defendant until the court so orders. Within 60 days from the date of service upon the attorney general of the complaint, evidence, and information under this paragraph, the attorney general may intervene in the action.

SB447-SSA1,16,5 (c) The attorney general may, for good cause shown, move the court for one or more extensions of the period during which a complaint in an action under this subsection remains under seal.

SB447-SSA1,16,7 (d) Before the expiration of the period during which the complaint remains under seal, the attorney general shall do one of the following:

SB447-SSA1,16,9 1. Proceed with the action or an alternate remedy under sub. (10), in which case the state shall prosecute the action or proceeding under sub. (10).

SB447-SSA1,16,11 2. Notify the court that he or she declines to proceed with the action, in which case the action may not proceed.

SB447-SSA1,16,14 (e) If a person brings a valid action under this subsection, no person other than the state may intervene or bring a related action while the original action is pending based upon the same facts underlying the pending action.

SB447-SSA1,16,17 (f) In any action or other proceeding under sub. (10) brought under this subsection, all essential elements of the cause of action or complaint, including damages, must be proven by a preponderance of the evidence.

SB447-SSA1,16,22 (6) If the state proceeds with an action under sub. (5) or an alternate remedy under sub. (10), the state has primary responsibility for prosecuting the action or proceeding under sub. (10). The state is not bound by any act of the person bringing the action, but that person has the right to continue as a party to the action, subject to the limitations under sub. (7).

SB447-SSA1,17,3 (7) (a) The state may move to dismiss an action under sub. (5) or an administrative proceeding under sub. (10) to which the state is a party for good cause shown, notwithstanding objection of the person bringing the action, if that person is served with a copy of the state's motion and is provided with an opportunity to oppose the motion before the court or the administrative agency before which the proceeding is conducted.

SB447-SSA1,17,11 (b) With the approval of the governor, the attorney general may compromise and settle an action under sub. (5) or an administrative proceeding under sub. (10) to which the state is a party, notwithstanding objection of the person bringing the action, if the court determines, after affording to the person bringing the action the right to a hearing at which the person is afforded the opportunity to present evidence in opposition to the proposed settlement, that the proposed settlement is fair, adequate, and reasonable considering the relevant circumstances pertaining to the violation.

SB447-SSA1,17,18 (c) Upon a showing by the state that unrestricted participation in the prosecution of an action under sub. (5) or an alternate proceeding to which the state is a party by the person bringing the action would interfere with or unduly delay the prosecution of the action or proceeding, or would result in consideration of repetitious or irrelevant evidence or evidence presented for purposes of harassment, the court may limit the person's participation in the prosecution in any of the following ways:

SB447-SSA1,17,19 1. Limiting the number of witnesses that the person may call.

SB447-SSA1,17,20 2. Limiting the length of the testimony of the witnesses.

SB447-SSA1,17,21 3. Limiting the cross-examination of witnesses by the person.

SB447-SSA1,17,23 4. Otherwise limiting the participation by the person in the prosecution of the action or proceeding.

SB447-SSA1,18,3 (d) Upon showing by a defendant that unrestricted participation in the prosecution of an action under sub. (5) or alternate proceeding under sub. (10) to which the state is a party by the person bringing the action would result in harassment or would cause the defendant undue burden or unnecessary expense, the court may limit the person's participation in the prosecution.

SB447-SSA1,18,12 (9) Upon showing in camera by the attorney general that discovery by the person bringing the action would interfere with the state's ongoing investigation or prosecution of a criminal or civil matter arising out of the same facts as the facts upon which the action is based, the court may stay the discovery in whole or in part for not more than 60 days. The court may extend the stay upon further showing in camera by the attorney general that the state has pursued the criminal or civil investigation of the matter with reasonable diligence and the proposed discovery in the action brought under sub. (5) will interfere with the ongoing criminal or civil investigation or prosecution.