LRB-5495/1
MPG:emw&wlj
2017 - 2018 LEGISLATURE
March 14, 2018 - Introduced by Senator Vinehout. Referred to Committee on
Economic Development, Commerce and Local Government.
SB873,1,9
1An Act to renumber and amend 13.94 (1) (dr);
to amend 1.14 (1) (b), 13.92 (1)
2(b) 1. b., 13.94 (1s) (c) 5., 16.004 (17), 16.004 (18), 16.52 (6) (a), 16.53 (13) (a),
316.545 (9), 16.70 (1e), 16.765 (1), 16.765 (2), 16.765 (5), 16.765 (6), 16.765 (7)
4(intro.), 16.765 (7) (d), 16.765 (8), 16.84 (14), 16.847 (2) (a), 16.849, 16.855 (16)
5(b) 1., 16.891 (1) (a), 16.967 (1) (a), 16.97 (1m), 20.505 (5) (ke), 20.866 (2) (ws),
620.867 (3) (kd), 238.02 (1), 238.03 (2) (c), 238.03 (2) (e) and 250.20 (1) (k); and
7to create 13.94 (1) (dr) 1., 13.94 (1) (dr) 2., 238.02 (1g), 238.02 (1r) and 238.07
8(2) (gm) of the statutes;
relating to: board of directors, powers and duties, and
9financial audits of the Wisconsin Economic Development Corporation.
Analysis by the Legislative Reference Bureau
This bill makes a number of changes to the laws governing the Wisconsin
Economic Development Corporation, including the following:
1. Currently, the board of directors of WEDC includes six members who are
nominated by the governor and appointed with the advice and consent of the senate
and who serve at the pleasure of the governor; three members appointed by the
speaker of the assembly, consisting of one majority and one minority party
representative to the assembly and one person employed in the private sector; and
three members appointed by the senate majority leader, consisting of one majority
and one minority party senator and one person employed in the private sector.
Under the bill, the members of the board nominated by the governor no longer
serve at the pleasure of the governor but serve six-year, staggered terms. In
addition, the members of the board employed in the private sector and appointed by
the speaker of the assembly and senate majority leader no longer serve at the
pleasure of the speaker or majority leader but serve six-year terms.
2. Under current law, the WEDC board elects a chairperson from among its
public members. Under the bill, the board must also elect one of its public members
to serve as the board's lead director for a two-year term. The lead director must have
significant corporate management experience. Under the bill, the lead director is to
chair meetings of the board in the chairperson's absence, chair the governance
committee, described below, serve as a liaison between the chairperson and the other
board members, work with the chairperson to ensure adequate committee structure
for any committees the board establishes, and carry out other duties as assigned by
the board or the governance committee.
3. The bill further requires WEDC's board to establish a governance committee.
In addition to the lead director, who serves as chair of the governance committee, the
governance committee must include two of the board's public members. The bill
directs the governance committee to develop principles for the board's oversight of
WEDC, oversee the board's operations, recommend membership for committees the
board establishes, assist the chairperson to identify qualified candidates to fill
vacancies on the board, and facilitate communication between the members of the
board and the chief executive officer of WEDC.
4. Under current law, the Legislative Audit Bureau is required to conduct a
financial audit of WEDC every two years and a program evaluation audit of the
economic development programs administered by WEDC every two years. The bill
requires that the financial audit be conducted annually until June 30, 2023, after
which point, the financial audit reverts to being conducted every two years.
5. Under current law, with certain exceptions, the Department of
Administration must purchase, or may delegate the authority to purchase, all
necessary materials, supplies, equipment, all other permanent personal property
and miscellaneous capital, and contractual services for all agencies. DOA, or its
delegated agents, may contract for services that can be performed more economically
or efficiently by contract. With exceptions, DOA must award orders and contracts
to the lowest responsible bidders or most competitive proposal. If the estimated cost
of an expenditure exceeds $50,000, DOA must solicit bids or competitive sealed
proposals. This bill adds WEDC to the definition of agency for purposes of state
procurement so that WEDC is subject to the same laws regulating agency
purchasing.
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:
SB873,1
1Section
1. 1.14 (1) (b) of the statutes is amended to read:
SB873,3,32
1.14
(1) (b) “State agency" has the meaning given for “agency" under s.
16.70
3(1e) 16.97 (1m).
SB873,2
4Section
2. 13.92 (1) (b) 1. b. of the statutes is amended to read:
SB873,3,65
13.92
(1) (b) 1. b. Any agency, as defined in s.
16.70 (1e) 16.97 (1m), created
6under ch. 13, 14, 15, or 758.
SB873,3
7Section
3. 13.94 (1) (dr) of the statutes is renumbered 13.94 (1) (dr) 3. and
8amended to read:
SB873,3,149
13.94
(1) (dr) 3. Biennially,
beginning in 2013, conduct
a financial audit of the
10Wisconsin Economic Development Corporation and a program evaluation audit of
11the economic development programs administered by the Wisconsin Economic
12Development Corporation under ch. 238. The legislative audit bureau shall file a
13copy of each audit report under this
paragraph
subdivision with the distributees
14specified in par. (b).
SB873,4
15Section
4. 13.94 (1) (dr) 1. of the statutes is created to read:
SB873,3,1916
13.94
(1) (dr) 1. Annually, conduct a financial audit of the Wisconsin Economic
17Development Corporation. The legislative audit bureau shall file a copy of each audit
18report under this subdivision with the distributees specified in par. (b). This
19subdivision does not apply after June 30, 2023.
SB873,5
20Section
5. 13.94 (1) (dr) 2. of the statutes is created to read:
SB873,4,4
113.94
(1) (dr) 2. Biennially, conduct a financial audit of the Wisconsin Economic
2Development Corporation. The legislative audit bureau shall file a copy of each audit
3report under this subdivision with the distributees specified in par. (b). This
4subdivision applies after June 30, 2023.
SB873,6
5Section
6. 13.94 (1s) (c) 5. of the statutes is amended to read:
SB873,4,76
13.94
(1s) (c) 5. The Wisconsin Economic Development Corporation for the cost
7of the
audit audits required to be performed under sub. (1) (dr).
SB873,7
8Section
7. 16.004 (17) of the statutes is amended to read:
SB873,4,129
16.004
(17) Business intelligence and data warehousing system. The
10department may implement an enterprise-wide reporting, data warehousing, and
11data analysis system applicable to every agency, as defined in s.
16.70 (1e) 16.97 (1m),
12other than the legislative and judicial branches of state government.
SB873,8
13Section
8. 16.004 (18) of the statutes is amended to read:
SB873,4,1714
16.004
(18) Intergovernmental affairs offices. The secretary may maintain
15intergovernmental affairs offices to conduct public outreach and promote
16coordination between agencies, as defined in s.
16.70 (1e) 16.97 (1m), and authorities,
17as defined in s. 16.70 (2).
SB873,9
18Section
9. 16.52 (6) (a) of the statutes is amended to read:
SB873,5,319
16.52
(6) (a) Except as authorized in s. 16.74, all purchase orders, contracts,
20or printing orders for any agency, as defined in s.
16.70 (1e) 16.97 (1m), shall, before
21any liability is incurred thereon, be submitted to the secretary for his or her approval
22as to legality of purpose and sufficiency of appropriated and allotted funds therefor.
23In all cases the date of the contract or order governs the fiscal year to which the
24contract or order is chargeable, unless the secretary determines that the purpose of
25the contract or order is to prevent lapsing of appropriations or to otherwise
1circumvent budgetary intent. Upon such approval, the secretary shall immediately
2encumber all contracts or orders, and indicate the fiscal year to which they are
3chargeable.
SB873,10
4Section
10. 16.53 (13) (a) of the statutes is amended to read:
SB873,5,65
16.53
(13) (a) In this subsection, “agency" has the meaning given in s.
16.70 (1e) 616.97 (1m).
SB873,11
7Section
11. 16.545 (9) of the statutes is amended to read:
SB873,5,148
16.545
(9) To initiate contacts with the federal government for the purpose of
9facilitating participation by agencies, as defined in s.
16.70 (1e) 16.97 (1m), in federal
10aid programs, to assist those agencies in applying for such aid, and to facilitate
11influencing the federal government to make policy changes that will be beneficial to
12this state. The department may assess an agency to which it provides services under
13this subsection a fee for the expenses incurred by the department in providing those
14services.
SB873,12
15Section
12. 16.70 (1e) of the statutes is amended to read:
SB873,5,2016
16.70
(1e) “Agency" means an office, department, agency, institution of higher
17education, association, society
, or other body in state government created or
18authorized to be created by the constitution or any law, which is entitled to expend
19moneys appropriated by law, including
the Wisconsin Economic Development
20Corporation, the legislature
, and the courts, but not including an authority.
SB873,13
21Section
13. 16.765 (1) of the statutes is amended to read:
SB873,6,722
16.765
(1) Contracting agencies, the University of Wisconsin Hospitals and
23Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
24Aerospace Authority, the Lower Fox River Remediation Authority,
the Wisconsin
25Economic Development Corporation, and the Bradley Center Sports and
1Entertainment Corporation shall include in all contracts executed by them a
2provision obligating the contractor not to discriminate against any employee or
3applicant for employment because of age, race, religion, color, handicap, sex, physical
4condition, developmental disability as defined in s. 51.01 (5), sexual orientation as
5defined in s. 111.32 (13m), or national origin and, except with respect to sexual
6orientation, obligating the contractor to take affirmative action to ensure equal
7employment opportunities.
SB873,14
8Section
14. 16.765 (2) of the statutes is amended to read:
SB873,6,259
16.765
(2) Contracting agencies, the University of Wisconsin Hospitals and
10Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
11Aerospace Authority, the Lower Fox River Remediation Authority,
the Wisconsin
12Economic Development Corporation, and the Bradley Center Sports and
13Entertainment Corporation shall include the following provision in every contract
14executed by them: “In connection with the performance of work under this contract,
15the contractor agrees not to discriminate against any employee or applicant for
16employment because of age, race, religion, color, handicap, sex, physical condition,
17developmental disability as defined in s. 51.01 (5), sexual orientation or national
18origin. This provision shall include, but not be limited to, the following: employment,
19upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or
20termination; rates of pay or other forms of compensation; and selection for training,
21including apprenticeship. Except with respect to sexual orientation, the contractor
22further agrees to take affirmative action to ensure equal employment opportunities.
23The contractor agrees to post in conspicuous places, available for employees and
24applicants for employment, notices to be provided by the contracting officer setting
25forth the provisions of the nondiscrimination clause".
SB873,15
1Section
15. 16.765 (5) of the statutes is amended to read:
SB873,7,172
16.765
(5) The head of each contracting agency and the boards of directors of
3the University of Wisconsin Hospitals and Clinics Authority, the Fox River
4Navigational System Authority, the Wisconsin Aerospace Authority, the Lower Fox
5River Remediation Authority,
the Wisconsin Economic Development Corporation, 6and the Bradley Center Sports and Entertainment Corporation shall be primarily
7responsible for obtaining compliance by any contractor with the nondiscrimination
8and affirmative action provisions prescribed by this section, according to procedures
9recommended by the department. The department shall make recommendations to
10the contracting agencies and the boards of directors of the University of Wisconsin
11Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
12Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority,
the
13Wisconsin Economic Development Corporation, and the Bradley Center Sports and
14Entertainment Corporation for improving and making more effective the
15nondiscrimination and affirmative action provisions of contracts. The department
16shall promulgate such rules as may be necessary for the performance of its functions
17under this section.
SB873,16
18Section
16. 16.765 (6) of the statutes is amended to read:
SB873,8,219
16.765
(6) The department may receive complaints of alleged violations of the
20nondiscrimination provisions of such contracts. The department shall investigate
21and determine whether a violation of this section has occurred. The department may
22delegate this authority to the contracting agency, the University of Wisconsin
23Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
24Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority,
the
25Wisconsin Economic Development Corporation, or the Bradley Center Sports and
1Entertainment Corporation for processing in accordance with the department's
2procedures.
SB873,17
3Section
17. 16.765 (7) (intro.) of the statutes is amended to read:
SB873,8,134
16.765
(7) (intro.) When a violation of this section has been determined by the
5department, the contracting agency, the University of Wisconsin Hospitals and
6Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
7Aerospace Authority, the Lower Fox River Remediation Authority,
the Wisconsin
8Economic Development Corporation, or the Bradley Center Sports and
9Entertainment Corporation, the contracting agency, the University of Wisconsin
10Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
11Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority,
the
12Wisconsin Economic Development Corporation, or the Bradley Center Sports and
13Entertainment Corporation shall:
SB873,18
14Section
18. 16.765 (7) (d) of the statutes is amended to read:
SB873,8,2015
16.765
(7) (d) Direct the violating party to take immediate steps to prevent
16further violations of this section and to report its corrective action to the contracting
17agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River
18Navigational System Authority, the Wisconsin Aerospace Authority, the Lower Fox
19River Remediation Authority,
the Wisconsin Economic Development Corporation, or
20the Bradley Center Sports and Entertainment Corporation.
SB873,19
21Section
19. 16.765 (8) of the statutes is amended to read:
SB873,9,1222
16.765
(8) If further violations of this section are committed during the term
23of the contract, the contracting agency, the Fox River Navigational System Authority,
24the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority,
the
25Wisconsin Economic Development Corporation, or the Bradley Center Sports and
1Entertainment Corporation may permit the violating party to complete the contract,
2after complying with this section, but thereafter the contracting agency, the Fox
3River Navigational System Authority, the Wisconsin Aerospace Authority, the Lower
4Fox River Remediation Authority,
the Wisconsin Economic Development
5Corporation, or the Bradley Center Sports and Entertainment Corporation shall
6request the department to place the name of the party on the ineligible list for state
7contracts, or the contracting agency, the Fox River Navigational System Authority,
8the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority,
the
9Wisconsin Economic Development Corporation, or the Bradley Center Sports and
10Entertainment Corporation may terminate the contract without liability for the
11uncompleted portion or any materials or services purchased or paid for by the
12contracting party for use in completing the contract.
SB873,20
13Section
20. 16.84 (14) of the statutes is amended to read:
SB873,9,1714
16.84
(14) Provide interagency mail delivery service for agencies, as defined
15in s.
16.70 (1e) 16.97 (1m). The department may charge agencies for this service. Any
16moneys collected shall be credited to the appropriation account under s. 20.505 (1)
17(kb).
SB873,21
18Section
21. 16.847 (2) (a) of the statutes is amended to read:
SB873,9,2319
16.847
(2) (a) The department may provide funding to agencies, as defined in
20s.
16.70 (1e) 16.97 (1m), for energy conservation construction projects at state
21facilities under the jurisdiction of the agencies to enhance the energy efficiency of the
22facilities. The department shall prescribe standards for evaluation of proposed
23projects and allocation of available moneys for those projects under this subsection.
SB873,22
24Section
22. 16.849 of the statutes is amended to read:
SB873,10,4
116.849 Facility design services for state agencies. The department may
2provide facility design services to agencies, as defined in s.
16.70 (1e) 16.97 (1m). The
3department may assess a fee to agencies for which the department performs services
4under this section.
SB873,23
5Section
23. 16.855 (16) (b) 1. of the statutes is amended to read:
SB873,10,76
16.855
(16) (b) 1. In this paragraph, “agency" has the meaning given in s.
16.70
7(1e) 16.97 (1m).
SB873,24
8Section
24. 16.891 (1) (a) of the statutes is amended to read:
SB873,10,99
16.891
(1) (a) “Agency" has the meaning given in s.
16.70 (1e) 16.97 (1m).
SB873,25
10Section
25. 16.967 (1) (a) of the statutes is amended to read:
SB873,10,1111
16.967
(1) (a) “Agency" has the meaning given in s.
16.70 (1e) 16.97 (1m).
SB873,26
12Section
26. 16.97 (1m) of the statutes is amended to read: