Amendment ASA1-SB55

SB55-ASA1,43,14 2. The secretary shall present this comparison in the format used for the statement of the condition of the general fund in the statement prepared under s. 20.005 (1).

SB55-ASA1,43,17 (f) A summary of the amount of additional general purpose revenues that will be available in the biennium following the succeeding biennium for increased expenditures or tax reductions, other than the amount calculated in par. (d).

SB55-ASA1, s. 72 Section 72. 16.46 (9) of the statutes is created to read:

SB55-ASA1,44,2 16.46 (9) A comparison of the state's budgetary surplus or deficit according to generally accepted accounting principles, as reported in any audited financial report prepared by the department for the most recent fiscal year, and the estimated change in the surplus or deficit based on recommendations in the biennial budget bill or bills. For the purpose of this calculation, the secretary shall increase or decrease the surplus or deficit by the amount designated as "Gross Balances" that appears in the 2nd year of the biennium in the summary in s. 20.005 (1), as published in the biennial budget bill or bills.

SB55-ASA1, s. 73 Section 73. 16.46 (10) of the statutes is created to read:

SB55-ASA1,44,4 16.46 (10) The determination of the department under s. 13.40 (4).

SB55-ASA1, s. 74 Section 74. 16.50 (1) (b) of the statutes is amended to read:

SB55-ASA1,44,7 16.50 (1) (b) This subsection does not apply to appropriations under ss. 20.255 (2) (ac) and (q), 20.835, and 20.865 (4).

SB55-ASA1, s. 75 Section 75. 16.50 (3) of the statutes is amended to read:

SB55-ASA1,45,14 16.50 (3) Limitation on increase of force and salaries. No department, except the legislature or the courts, may increase the pay of any employee, expend money or incur any obligation except in accordance with the estimate that is submitted to the secretary as provided in sub. (1) and approved by the secretary or the governor. No change in the number of full-time equivalent positions authorized through the biennial budget process or other legislative act may be made without the approval of the joint committee on finance, except for position changes made by the governor under s. 16.505 (1) (c) or (2), by the University of Wisconsin Hospitals and Clinics Board under s. 16.505 (2n) or by the board of regents of the University of Wisconsin System under s. 16.505 (2m) or (2p). The secretary may withhold, in total or in part, the funding for any position, as defined in s. 230.03 (11), as well as the funding for part-time or limited term employees until such time as the secretary determines that the filling of the position or the expending of funds is consistent with s. 16.505 and with the intent of the legislature as established by law or in budget determinations, or the intent of the joint committee on finance in creating or abolishing positions under s. 13.10, the intent of the governor in creating or abolishing positions under s. 16.505 (1) (c) or (2) or the intent of the board of regents of the University of Wisconsin System in creating or abolishing positions under s. 16.505 (2m) or (2p). Until the release of funding occurs, recruitment or certification for the position may not be undertaken. The secretary shall submit a quarterly report to the joint committee on finance of any position changes made by the governor under s. 16.505 (1) (c). No pay increase may be approved unless it is at the rate or within the pay ranges prescribed in the compensation plan or as provided in a collective bargaining agreement under subch. V of ch. 111. At the request of the secretary of employment relations, the secretary of administration may authorize the temporary creation of pool or surplus positions under any source of funds if the secretary of employment relations determines that temporary positions are necessary to maintain adequate staffing levels for high turnover classifications, in anticipation of attrition, to fill positions for which recruitment is difficult. Surplus or pool positions authorized by the secretary shall be reported quarterly to the joint committee on finance in conjunction with the report required under s. 16.54 (8).

SB55-ASA1, s. 76 Section 76. 16.50 (7) (b) of the statutes is amended to read:

SB55-ASA1,45,23 16.50 (7) (b) Following such notification, the governor shall submit a bill containing his or her recommendations for correcting the imbalance between projected revenues and authorized expenditures, including a recommendation as to whether moneys should be transferred from the budget stabilization fund to the general fund. If the legislature is not in a floorperiod at the time of the secretary's notification, the governor shall call a special session of the legislature to take up the matter of the projected revenue shortfall and the governor shall submit his or her bill for consideration at that session.

SB55-ASA1, s. 77 Section 77. 16.505 (1) (intro.) of the statutes is amended to read:

SB55-ASA1,46,3 16.505 (1) (intro.) Except as provided in subs. (2), (2m) and, (2n), and (2p), no position, as defined in s. 230.03 (11), regardless of funding source or type, may be created or abolished unless authorized by one of the following:

SB55-ASA1, s. 78 Section 78. 16.505 (2p) of the statutes is created to read:

SB55-ASA1,46,12 16.505 (2p) (a) Subject to par. (b), the board of regents of the University of Wisconsin System may create or abolish a full-time equivalent academic staff or faculty position or portion thereof from revenues appropriated under s. 20.285 (1) (a). Annually, no later than the September 30 following completion of the fiscal year, the board of regents shall report to the department and the cochairpersons of the joint committee on finance concerning the number of full-time equivalent positions created or abolished by the board under this subsection during the preceding fiscal year.

SB55-ASA1,46,19 (b) The board of regents may not create or abolish any position under par. (a) until the board and the department have entered into a memorandum of understanding that establishes a methodology for identifying and accounting for the cost of funding any positions that are created, including any amounts that the board may include in a certification to the department under s. 20.928 (1). The board and the department shall enter into the memorandum of understanding no later than September 1, 2002.

SB55-ASA1,46,23 (c) Notwithstanding s. 20.928 (1), in certifying the sum of moneys needed to pay any costs associated with a position that is created under par. (a), the board of regents may only certify the sum that is permitted under the memorandum of understanding entered into under par. (b).

SB55-ASA1,47,2 (d) Notwithstanding s. 16.42 (1), in submitting information under s. 16.42 for the biennial budget bill or bills, the board of regents may only include that portion of the cost of funding the positions created under par. (a) that is permitted under the memorandum of understanding entered into under par. (b).

SB55-ASA1, s. 79 Section 79. 16.518 of the statutes is created to read:

SB55-ASA1,47,6 16.518 Transfers to the budget stabilization fund and the tax relief fund. (1) In this section, "summary" means the amount shown in the summary in s. 20.005 (1), as published in the biennial budget act or acts.

SB55-ASA1,47,10 (2) Annually, the secretary shall calculate the difference between the amount of moneys projected to be deposited in the general fund during the fiscal year that are designated as "Taxes" in the summary and the amount of such moneys actually deposited in the general fund during the fiscal year.

SB55-ASA1,47,15 (3) (a) Subject to par. (b), if the amount of moneys projected to be deposited in the general fund during the fiscal year that are designated as "Taxes" in the summary is less than the amount of such moneys actually deposited in the general fund during the fiscal year, the secretary shall annually transfer from the general fund to the budget stabilization fund 50% of the amount calculated under sub. (2).

SB55-ASA1,47,19 (b) 1. If the balance of the budget stabilization fund on June 30 of the fiscal year is at least equal to 5% of the estimated expenditures from the general fund during the fiscal year, as reported in the summary, the secretary may not make the transfer under par. (a).

SB55-ASA1,47,25 2. If the amount transferred under par. (a) would cause the general fund balance on June 30 of the fiscal year to be less than the general fund balance that is required under s. 20.003 (4) for that fiscal year, the secretary shall reduce the amount transferred under par. (a) to the amount that would cause the general fund balance to be equal to the minimum general fund balance that is required under s. 20.003 (4) for that fiscal year.

SB55-ASA1,48,8 (4) If the amount of moneys projected to be deposited in the general fund during the fiscal year that are designated as "Taxes" in the summary is less than the amount of such moneys actually deposited in the general fund during the fiscal year, annually the secretary shall calculate the difference between the amount calculated under sub. (2) and the amount transferred to the budget stabilization fund under sub. (3). If the difference between the amounts is at least $115,000,000, the secretary shall transfer from the general fund to the tax relief fund the amount that exceeds $115,000,000.

SB55-ASA1, s. 80 Section 80. 16.519 of the statutes is created to read:

SB55-ASA1,48,12 16.519 Fund transfers relating to tobacco settlement agreement. (1) In this section, "tobacco settlement agreement" means the Attorneys General Master Tobacco Settlement Agreement of November 23, 1998.

SB55-ASA1,48,18 (3) If the state has not received in fiscal year 2001-02 at least $6,032,300 under the tobacco settlement agreement, because the secretary, under s. 16.63, has sold the state's right to receive any of the payments under the tobacco settlement agreement, the secretary shall transfer from the general fund to the tobacco control fund an amount equal to $6,032,300 less any payments received under the tobacco settlement agreement and deposited in the tobacco control fund in that fiscal year.

SB55-ASA1,49,2 (4) Beginning in fiscal year 2002-03, if the state has not received at least $15,345,100 in that fiscal year or in any fiscal year thereafter under the tobacco settlement agreement, because the secretary, under s. 16.63, has sold the state's right to receive any of the payments under the tobacco settlement agreement, the secretary shall transfer from the general fund to the tobacco control fund in each fiscal year in which the state has not received at least $15,345,100 under the tobacco settlement agreement an amount equal to $15,345,100 less any payments received under the tobacco settlement agreement and deposited in the tobacco control fund in the fiscal year.

SB55-ASA1, s. 248t Section 248t. 16.52 (6) (a) of the statutes is amended to read:

SB55-ASA1,49,15 16.52 (6) (a) Except as authorized in s. 16.74, all purchase orders, contracts, or printing orders for any agency as defined in s. 16.70 (1) shall, before any liability is incurred thereon, be submitted to the secretary for his or her approval as to legality of purpose and sufficiency of appropriated and allotted funds therefor. In all cases the date of the contract or order governs the fiscal year to which the contract or order is chargeable, unless the secretary determines that the purpose of the contract or order is to prevent lapsing of appropriations or to otherwise circumvent budgetary intent. Upon such approval, the secretary shall immediately encumber all contracts or orders, and indicate the fiscal year to which they are chargeable , except that, for contracts for services funded from the appropriation under s. 20.435 (2) (bj), the secretary may encumber less than the amount of the contract if it is expected that billing for that contract may be submitted in the next fiscal year.

SB55-ASA1, s. 81 Section 81. 16.52 (7) of the statutes is amended to read:

SB55-ASA1,50,2 16.52 (7) Petty cash account. With the approval of the secretary, each agency which is authorized to maintain a contingent fund under s. 20.920 may establish a petty cash account from its contingent fund. The procedure for operation and maintenance of petty cash accounts and the character of expenditures therefrom shall be prescribed by the secretary. In this subsection, "agency" means an office, department, independent agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in ch. 231, 233 or, 234, or 237.

SB55-ASA1, s. 82 Section 82. 16.52 (10) of the statutes is amended to read:

SB55-ASA1,50,7 16.52 (10) Department of public instruction. The provisions of sub. (2) with respect to refunds and sub. (5) (a) with respect to reimbursements for the prior fiscal year shall not apply to the appropriations appropriation under s. 20.255 (2) (ac) and (q).

SB55-ASA1, s. 83 Section 83. 16.528 (1) (a) of the statutes is amended to read:

SB55-ASA1,50,13 16.528 (1) (a) "Agency" means an office, department, independent agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in ch. 231, 233 or, 234, or 237.

SB55-ASA1, s. 84 Section 84. 16.53 (2) of the statutes is amended to read:

SB55-ASA1,50,22 16.53 (2) Improper invoices. If an agency receives an improperly completed invoice, the agency shall notify the sender of the invoice within 10 working days after it receives the invoice of the reason it is improperly completed. In this subsection, "agency" means an office, department, independent agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in ch. 231, 233 or, 234, or 237.

SB55-ASA1, s. 85 Section 85. 16.53 (14) of the statutes is created to read:

SB55-ASA1,51,4 16.53 (14) Review of proposed incorporations and annexations. The department may prescribe and collect a fee for review of any petition for incorporation of a municipality under s. 66.0203 or any petition for annexation of municipal territory under s. 66.0217. The fee shall be paid by the person or persons filing the petition for incorporation or by the person or persons filing the notice of the proposed annexation.

SB55-ASA1, s. 255p Section 255p. 16.54 (2) (a) 2. of the statutes is amended to read:

SB55-ASA1,51,23 16.54 (2) (a) 2. Whenever a block grant is made to this state under any federal law enacted after August 31, 1995, which authorizes the distribution of block grants for the purposes for which the grant is made, the governor shall not administer and no board, commission, or department may encumber or expend moneys received as a part of the grant unless the governor first notifies the cochairpersons of the joint committee on finance, in writing, that the grant has been made. The notice shall contain a description of the purposes proposed by the governor for expenditure of the moneys received as a part of the grant. If the cochairpersons of the committee do not notify the governor that the committee has scheduled a meeting for the purpose of reviewing the proposed expenditure of grant moneys within 14 working days after the date of the governor's notification, the moneys may be expended as proposed by the governor. If, within 14 working days after the date of the governor's notification, the cochairpersons of the committee notify the governor that the committee has scheduled a meeting for the purpose of reviewing the proposed expenditure of grant moneys, no moneys received as a part of the grant may be expended without the approval of the committee. This subdivision does not apply to the expenditure of block grant funds that are allocated under s. 49.175 in the fiscal year in which the funds are allocated under s. 49.175.

SB55-ASA1, s. 86 Section 86. 16.54 (9) (a) 1. of the statutes is amended to read:

SB55-ASA1,52,5 16.54 (9) (a) 1. "Agency" means an office, department, independent agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in ch. 231, 233 or, 234, or 237.

SB55-ASA1, s. 87 Section 87. 16.54 (13) of the statutes is created to read:

SB55-ASA1,52,13 16.54 (13) (a) If the state receives any interest payments from the federal government relating to the timing of transfers of federal grant funds for programs that are funded with moneys from the general fund and that are covered in an agreement between the federal department of the treasury and the state under the federal Cash Management Improvement Act of 1990, as amended, the payments, less applicable administrative costs, shall be deposited in the general fund as general purpose revenue — earned.

SB55-ASA1,52,21 (b) If the state is required to pay any interest payments to the federal government relating to the timing of transfers of federal grant funds for programs that are funded with moneys from the general fund and that are covered in an agreement between the federal department of the treasury and the state under the federal Cash Management Improvement Act of 1990, as amended, the secretary shall notify the cochairpersons of the joint committee on finance, in writing, that the state is required to pay an interest payment. The notice shall contain an accounting of the amount of interest that the state is required to pay.

SB55-ASA1, s. 88 Section 88. 16.545 (9) of the statutes is amended to read:

SB55-ASA1,53,5 16.545 (9) To process applications for grants from the federal government upon request of any agency initiate contacts with the federal government for the purpose of facilitating participation by agencies, as defined in s. 16.70 (1), in federal aid programs, to assist those agencies in applying for such aid, and to facilitate influencing the federal government to make policy changes that will be beneficial to this state. The department may assess to an agency for whom it processes an application to which it provides services under this subsection a fee for the expenses incurred by the department in performing this service providing those services.

SB55-ASA1, s. 89 Section 89. 16.61 (2) (af) of the statutes is amended to read:

SB55-ASA1,53,7 16.61 (2) (af) "Form" has the meaning specified in s. 16.97 22.01 (5p).

SB55-ASA1, s. 90 Section 90. 16.61 (3n) of the statutes is amended to read:

SB55-ASA1,53,10 16.61 (3n) Exempt forms. The board may not receive or investigate complaints about the forms specified in s. 16.971 22.03 (2m).

SB55-ASA1, s. 91 Section 91. 16.62 (2) of the statutes is amended to read:

SB55-ASA1,53,15 16.62 (2) The department may establish user charges for records storage and retrieval services, with any moneys collected to be credited to the appropriation account under s. 20.505 (1) (im) or (kd) (kb). Such charges shall be structured to encourage efficient utilization of the services.

SB55-ASA1, s. 92 Section 92. 16.62 (3) of the statutes is amended to read:

SB55-ASA1,53,19 16.62 (3) The department may establish user fees for the services of the public records board. Any moneys collected shall be credited to the appropriation account under s. 20.505 (1) (kd) (kb).

SB55-ASA1, s. 93 Section 93. 16.63 of the statutes is created to read:

SB55-ASA1,53,22 16.63 Sale of state's rights to tobacco settlement agreement payments. (1) In this section:

SB55-ASA1,53,24 (a) "Purchaser" means any person who has purchased the state's right to receive any of the payments under the tobacco settlement agreement.

SB55-ASA1,54,2 (b) "Tobacco settlement agreement" means the Attorneys General Master Tobacco Settlement Agreement of November 23, 1998.

SB55-ASA1,54,5 (c) "Tobacco settlement revenues" means the right to receive settlement payments arising from or pursuant to the tobacco settlement agreement and all direct or indirect proceeds of that right.

SB55-ASA1,54,7 (2) The secretary may sell for cash or other consideration the state's right to receive any of the payments under the tobacco settlement agreement.

SB55-ASA1,54,11 (3) The secretary may organize one or more nonstock corporations under ch. 181 or limited liability companies under ch. 183 for any purpose related to the sale of the state's right to receive any of the payments under the tobacco settlement agreement and may take any action necessary to facilitate and complete the sale.

SB55-ASA1,54,16 (3m) 1. If the secretary sells the state's right to receive any of the payments under the tobacco settlement agreement, the secretary shall require, as a condition of the sale, that the purchaser notify the secretary if any bonds or other obligations are issued that are secured by any of the payments and provide the secretary with all information on the distribution of the bond or obligation proceeds.

SB55-ASA1,54,19 2. The secretary shall submit a report to the joint committee on finance that includes all of the information provided to the secretary by the purchaser under subd. 1.

SB55-ASA1,54,21 (4) (a) Tobacco settlement revenues may not be deemed proceeds of any property which is not tobacco settlement revenues.

SB55-ASA1,54,25 (b) Except as otherwise provided in this subsection, the creation, perfection, and enforcement of security interests in tobacco settlement revenues are governed by ch. 409. Notwithstanding ch. 409, with regard to creating, perfecting, and enforcing a valid security interest in tobacco settlement revenues:

SB55-ASA1,55,3 1. If this state or the Wisconsin health and educational facilities authority is the debtor in the transaction, the proper place to file the required financing statement to perfect the security interest is the department of financial institutions.

SB55-ASA1,55,9 2. The required financing statement shall include a description of collateral that describes the collateral as general intangibles consisting of the right to receive settlement payments arising from or pursuant to the tobacco settlement agreement and all proceeds of that right. The required financing statement may include any additional description of collateral that is legally sufficient under the laws of this state.

SB55-ASA1,55,11 3. The tobacco settlement revenues are general intangibles for purposes of ch. 409.

SB55-ASA1,55,21 4. A security interest perfected under this paragraph is enforceable against the debtor, any assignee or grantee, and all third parties, including creditors under any lien obtained by judicial proceedings, subject only to the rights of any third parties holding security interests in the tobacco settlement revenues previously perfected under this paragraph. Unless the applicable security agreement provides otherwise, a perfected security interest in the tobacco settlement revenues is a continuously perfected security interest in all tobacco settlement revenues existing on the date of the agreement or arising after the date of the agreement. A security interest perfected under this paragraph has priority over any other lien created by operation of law or otherwise, which subsequently attaches to the tobacco settlement revenues.

SB55-ASA1,55,24 5. The priority of a security interest created under this paragraph is not affected by the commingling of proceeds arising from the tobacco settlement revenues with other amounts.

SB55-ASA1,56,3 (c) The sale, assignment, and transfer of tobacco settlement revenues are governed by this paragraph. All of the following apply to a sale, assignment, or transfer under this paragraph:

SB55-ASA1,56,10 1. The sale, assignment, or transfer is an absolute transfer of, and not a pledge of or secured transaction relating to, the seller's right, title, and interest in, to, and under the tobacco settlement revenues, if the documents governing the transaction expressly state that the transaction is a sale or other absolute transfer. After such a transaction, the tobacco settlement revenues are not subject to any claims of the seller or the seller's creditors, other than creditors holding a prior security interest in the tobacco settlement revenues perfected under par. (b).

SB55-ASA1,56,13 2. The characterization of the sale, assignment, or transfer as an absolute transfer under subd. 1. and the corresponding characterization of the purchaser's property interest is not affected by any of the following factors:

SB55-ASA1,56,15 a. Commingling of amounts arising with respect to the tobacco settlement revenues with other amounts.

SB55-ASA1,56,18 b. The retention by the seller of a partial or residual interest, including an equity interest, in the tobacco settlement revenues, whether direct or indirect, or whether subordinate or otherwise.

SB55-ASA1,56,20 c. The sale, assignment, or transfer of only a portion of the tobacco settlement revenues or an undivided interest in the tobacco settlement revenues.

SB55-ASA1,56,21 d. Any recourse that the purchaser or its assignees may have against the seller.

SB55-ASA1,56,25 e. Whether the seller is responsible for collecting payments due under the tobacco settlement revenues or for otherwise enforcing any of the tobacco settlement revenues or retains legal title to the tobacco settlement revenues for the purpose of these collection activities.

SB55-ASA1,57,1 f. The treatment of the sale, assignment, or transfer for tax purposes.

SB55-ASA1,57,4 3. The sale, assignment, or transfer is perfected automatically as against third parties, including any third parties with liens created by operation of law or otherwise, upon attachment under ch. 409.

SB55-ASA1,57,9 4. Nothing in this subsection precludes consideration of the factors listed in subd. 2. a. to e. in determining whether the sale, assignment, or transfer is a sale for tax purposes. The characterization of the sale, assignment, or transfer as an absolute transfer under subd. 1. may not be considered in determining whether the sale, assignment, or transfer is a sale for tax purposes.

SB55-ASA1,57,22 (5) If the secretary sells the state's right to receive any of the payments under the tobacco settlement agreement, the state pledges to and agrees with any purchaser or subsequent transferee of the state's right to receive any of the payments under the tobacco settlement agreement that the state will not limit or alter its powers to fulfill the terms of the tobacco settlement agreement, nor will the state in any way impair the rights and remedies provided under the tobacco settlement agreement. The state also pledges to and agrees with any purchaser or subsequent transferee of the state's right to receive any of the payments under the tobacco settlement agreement that the state will pay all costs and expenses in connection with any action or proceeding brought by or on behalf of the purchaser or any subsequent transferee related to the state's not fulfilling the terms of the tobacco settlement agreement. The secretary may include this pledge and agreement of the state in any contract that is entered into by the secretary under this section.

SB55-ASA1,58,6 (6) If the secretary sells the state's right to receive any of the payments under the tobacco settlement agreement, the state pledges to and agrees with any purchaser or subsequent transferee of the state's right to receive any of the payments under the tobacco settlement agreement that the state will not limit or alter the powers of the secretary under this section until any contract that is entered into under this section is fully performed, unless adequate provision is made by law for the protection of the rights and remedies of the purchaser or any subsequent transferee under the contract. The secretary may include this pledge and agreement of the state in any contract that is entered into by the secretary under this section.

SB55-ASA1,58,12 (8) This subsection and subs. (8m) and (9) shall govern all civil claims, suits, proceedings, and actions brought against the state relating to the sale of the state's right to receive any of the payments under the tobacco settlement agreement. If the state fails to comply with this section or the terms of any agreement relating to the sale of the state's right to receive any of the payments under the tobacco settlement agreement, an action to compel compliance may be commenced against the state.