SB55-ASA1, s. 255p 5Section 255p. 16.54 (2) (a) 2. of the statutes is amended to read:
SB55-ASA1,51,236 16.54 (2) (a) 2. Whenever a block grant is made to this state under any federal
7law enacted after August 31, 1995, which authorizes the distribution of block grants
8for the purposes for which the grant is made, the governor shall not administer and
9no board, commission, or department may encumber or expend moneys received as
10a part of the grant unless the governor first notifies the cochairpersons of the joint
11committee on finance, in writing, that the grant has been made. The notice shall
12contain a description of the purposes proposed by the governor for expenditure of the
13moneys received as a part of the grant. If the cochairpersons of the committee do not
14notify the governor that the committee has scheduled a meeting for the purpose of
15reviewing the proposed expenditure of grant moneys within 14 working days after
16the date of the governor's notification, the moneys may be expended as proposed by
17the governor. If, within 14 working days after the date of the governor's notification,
18the cochairpersons of the committee notify the governor that the committee has
19scheduled a meeting for the purpose of reviewing the proposed expenditure of grant
20moneys, no moneys received as a part of the grant may be expended without the
21approval of the committee. This subdivision does not apply to the expenditure of
22block grant funds that are allocated under s. 49.175 in the fiscal year in which the
23funds are allocated under s. 49.175
.
SB55-ASA1, s. 86 24Section 86. 16.54 (9) (a) 1. of the statutes is amended to read:
SB55-ASA1,52,5
116.54 (9) (a) 1. "Agency" means an office, department, independent agency,
2institution of higher education, association, society or other body in state
3government created or authorized to be created by the constitution or any law, which
4is entitled to expend moneys appropriated by law, including the legislature and the
5courts, but not including an authority created in ch. 231, 233 or, 234, or 237.
SB55-ASA1, s. 87 6Section 87. 16.54 (13) of the statutes is created to read:
SB55-ASA1,52,137 16.54 (13) (a) If the state receives any interest payments from the federal
8government relating to the timing of transfers of federal grant funds for programs
9that are funded with moneys from the general fund and that are covered in an
10agreement between the federal department of the treasury and the state under the
11federal Cash Management Improvement Act of 1990, as amended, the payments,
12less applicable administrative costs, shall be deposited in the general fund as general
13purpose revenue — earned.
SB55-ASA1,52,2114 (b) If the state is required to pay any interest payments to the federal
15government relating to the timing of transfers of federal grant funds for programs
16that are funded with moneys from the general fund and that are covered in an
17agreement between the federal department of the treasury and the state under the
18federal Cash Management Improvement Act of 1990, as amended, the secretary
19shall notify the cochairpersons of the joint committee on finance, in writing, that the
20state is required to pay an interest payment. The notice shall contain an accounting
21of the amount of interest that the state is required to pay.
SB55-ASA1, s. 88 22Section 88. 16.545 (9) of the statutes is amended to read:
SB55-ASA1,53,523 16.545 (9) To process applications for grants from the federal government upon
24request of any agency
initiate contacts with the federal government for the purpose
25of facilitating participation by agencies
, as defined in s. 16.70 (1), in federal aid

1programs, to assist those agencies in applying for such aid, and to facilitate
2influencing the federal government to make policy changes that will be beneficial to
3this state
. The department may assess to an agency for whom it processes an
4application
to which it provides services under this subsection a fee for the expenses
5incurred by the department in performing this service providing those services.
SB55-ASA1, s. 89 6Section 89. 16.61 (2) (af) of the statutes is amended to read:
SB55-ASA1,53,77 16.61 (2) (af) "Form" has the meaning specified in s. 16.97 22.01 (5p).
SB55-ASA1, s. 90 8Section 90. 16.61 (3n) of the statutes is amended to read:
SB55-ASA1,53,109 16.61 (3n) Exempt forms. The board may not receive or investigate complaints
10about the forms specified in s. 16.971 22.03 (2m).
SB55-ASA1, s. 91 11Section 91. 16.62 (2) of the statutes is amended to read:
SB55-ASA1,53,1512 16.62 (2) The department may establish user charges for records storage and
13retrieval services, with any moneys collected to be credited to the appropriation
14account under s. 20.505 (1) (im) or (kd) (kb). Such charges shall be structured to
15encourage efficient utilization of the services.
SB55-ASA1, s. 92 16Section 92. 16.62 (3) of the statutes is amended to read:
SB55-ASA1,53,1917 16.62 (3) The department may establish user fees for the services of the public
18records board. Any moneys collected shall be credited to the appropriation account
19under s. 20.505 (1) (kd) (kb).
SB55-ASA1, s. 93 20Section 93. 16.63 of the statutes is created to read:
SB55-ASA1,53,22 2116.63 Sale of state's rights to tobacco settlement agreement payments.
22(1) In this section:
SB55-ASA1,53,2423 (a) "Purchaser" means any person who has purchased the state's right to
24receive any of the payments under the tobacco settlement agreement.
SB55-ASA1,54,2
1(b) "Tobacco settlement agreement" means the Attorneys General Master
2Tobacco Settlement Agreement of November 23, 1998.
SB55-ASA1,54,53 (c) "Tobacco settlement revenues" means the right to receive settlement
4payments arising from or pursuant to the tobacco settlement agreement and all
5direct or indirect proceeds of that right.
SB55-ASA1,54,7 6(2) The secretary may sell for cash or other consideration the state's right to
7receive any of the payments under the tobacco settlement agreement.
SB55-ASA1,54,11 8(3) The secretary may organize one or more nonstock corporations under ch.
9181 or limited liability companies under ch. 183 for any purpose related to the sale
10of the state's right to receive any of the payments under the tobacco settlement
11agreement and may take any action necessary to facilitate and complete the sale.
SB55-ASA1,54,16 12(3m) 1. If the secretary sells the state's right to receive any of the payments
13under the tobacco settlement agreement, the secretary shall require, as a condition
14of the sale, that the purchaser notify the secretary if any bonds or other obligations
15are issued that are secured by any of the payments and provide the secretary with
16all information on the distribution of the bond or obligation proceeds.
SB55-ASA1,54,1917 2. The secretary shall submit a report to the joint committee on finance that
18includes all of the information provided to the secretary by the purchaser under subd.
191.
SB55-ASA1,54,21 20(4) (a) Tobacco settlement revenues may not be deemed proceeds of any
21property which is not tobacco settlement revenues.
SB55-ASA1,54,2522 (b) Except as otherwise provided in this subsection, the creation, perfection,
23and enforcement of security interests in tobacco settlement revenues are governed
24by ch. 409. Notwithstanding ch. 409, with regard to creating, perfecting, and
25enforcing a valid security interest in tobacco settlement revenues:
SB55-ASA1,55,3
11. If this state or the Wisconsin health and educational facilities authority is
2the debtor in the transaction, the proper place to file the required financing
3statement to perfect the security interest is the department of financial institutions.
SB55-ASA1,55,94 2. The required financing statement shall include a description of collateral
5that describes the collateral as general intangibles consisting of the right to receive
6settlement payments arising from or pursuant to the tobacco settlement agreement
7and all proceeds of that right. The required financing statement may include any
8additional description of collateral that is legally sufficient under the laws of this
9state.
SB55-ASA1,55,1110 3. The tobacco settlement revenues are general intangibles for purposes of ch.
11409.
SB55-ASA1,55,2112 4. A security interest perfected under this paragraph is enforceable against the
13debtor, any assignee or grantee, and all third parties, including creditors under any
14lien obtained by judicial proceedings, subject only to the rights of any third parties
15holding security interests in the tobacco settlement revenues previously perfected
16under this paragraph. Unless the applicable security agreement provides otherwise,
17a perfected security interest in the tobacco settlement revenues is a continuously
18perfected security interest in all tobacco settlement revenues existing on the date of
19the agreement or arising after the date of the agreement. A security interest
20perfected under this paragraph has priority over any other lien created by operation
21of law or otherwise, which subsequently attaches to the tobacco settlement revenues.
SB55-ASA1,55,2422 5. The priority of a security interest created under this paragraph is not
23affected by the commingling of proceeds arising from the tobacco settlement
24revenues with other amounts.
SB55-ASA1,56,3
1(c) The sale, assignment, and transfer of tobacco settlement revenues are
2governed by this paragraph. All of the following apply to a sale, assignment, or
3transfer under this paragraph:
SB55-ASA1,56,104 1. The sale, assignment, or transfer is an absolute transfer of, and not a pledge
5of or secured transaction relating to, the seller's right, title, and interest in, to, and
6under the tobacco settlement revenues, if the documents governing the transaction
7expressly state that the transaction is a sale or other absolute transfer. After such
8a transaction, the tobacco settlement revenues are not subject to any claims of the
9seller or the seller's creditors, other than creditors holding a prior security interest
10in the tobacco settlement revenues perfected under par. (b).
SB55-ASA1,56,1311 2. The characterization of the sale, assignment, or transfer as an absolute
12transfer under subd. 1. and the corresponding characterization of the purchaser's
13property interest is not affected by any of the following factors:
SB55-ASA1,56,1514 a. Commingling of amounts arising with respect to the tobacco settlement
15revenues with other amounts.
SB55-ASA1,56,1816 b. The retention by the seller of a partial or residual interest, including an
17equity interest, in the tobacco settlement revenues, whether direct or indirect, or
18whether subordinate or otherwise.
SB55-ASA1,56,2019 c. The sale, assignment, or transfer of only a portion of the tobacco settlement
20revenues or an undivided interest in the tobacco settlement revenues.
SB55-ASA1,56,2121 d. Any recourse that the purchaser or its assignees may have against the seller.
SB55-ASA1,56,2522 e. Whether the seller is responsible for collecting payments due under the
23tobacco settlement revenues or for otherwise enforcing any of the tobacco settlement
24revenues or retains legal title to the tobacco settlement revenues for the purpose of
25these collection activities.
SB55-ASA1,57,1
1f. The treatment of the sale, assignment, or transfer for tax purposes.
SB55-ASA1,57,42 3. The sale, assignment, or transfer is perfected automatically as against third
3parties, including any third parties with liens created by operation of law or
4otherwise, upon attachment under ch. 409.
SB55-ASA1,57,95 4. Nothing in this subsection precludes consideration of the factors listed in
6subd. 2. a. to e. in determining whether the sale, assignment, or transfer is a sale for
7tax purposes. The characterization of the sale, assignment, or transfer as an
8absolute transfer under subd. 1. may not be considered in determining whether the
9sale, assignment, or transfer is a sale for tax purposes.
SB55-ASA1,57,22 10(5) If the secretary sells the state's right to receive any of the payments under
11the tobacco settlement agreement, the state pledges to and agrees with any
12purchaser or subsequent transferee of the state's right to receive any of the payments
13under the tobacco settlement agreement that the state will not limit or alter its
14powers to fulfill the terms of the tobacco settlement agreement, nor will the state in
15any way impair the rights and remedies provided under the tobacco settlement
16agreement. The state also pledges to and agrees with any purchaser or subsequent
17transferee of the state's right to receive any of the payments under the tobacco
18settlement agreement that the state will pay all costs and expenses in connection
19with any action or proceeding brought by or on behalf of the purchaser or any
20subsequent transferee related to the state's not fulfilling the terms of the tobacco
21settlement agreement. The secretary may include this pledge and agreement of the
22state in any contract that is entered into by the secretary under this section.
SB55-ASA1,58,6 23(6) If the secretary sells the state's right to receive any of the payments under
24the tobacco settlement agreement, the state pledges to and agrees with any
25purchaser or subsequent transferee of the state's right to receive any of the payments

1under the tobacco settlement agreement that the state will not limit or alter the
2powers of the secretary under this section until any contract that is entered into
3under this section is fully performed, unless adequate provision is made by law for
4the protection of the rights and remedies of the purchaser or any subsequent
5transferee under the contract. The secretary may include this pledge and agreement
6of the state in any contract that is entered into by the secretary under this section.
SB55-ASA1,58,12 7(8) This subsection and subs. (8m) and (9) shall govern all civil claims, suits,
8proceedings, and actions brought against the state relating to the sale of the state's
9right to receive any of the payments under the tobacco settlement agreement. If the
10state fails to comply with this section or the terms of any agreement relating to the
11sale of the state's right to receive any of the payments under the tobacco settlement
12agreement, an action to compel compliance may be commenced against the state.
SB55-ASA1,58,15 13(8m) If the recovery of a money judgment against the state is necessary to give
14the plaintiff in an action under sub. (8) complete relief, a claim for the money
15damages may be joined with the claim commenced under sub. (8).
SB55-ASA1,58,20 16(9) Sections 16.007, 16.53, and 775.01 do not apply to claims against the state
17under sub. (8) or (8m). If there is a final judgment against the state in such an action,
18the judgment shall be paid as provided in s. 775.04 together with interest at the rate
19of 10% per year from the date such payment was judged to have been due until the
20date of payment of the judgment.
SB55-ASA1, s. 94 21Section 94. 16.70 (2) of the statutes is amended to read:
SB55-ASA1,58,2322 16.70 (2) "Authority" means a body created under ch. 231, 232, 233 or, 234, 235,
23or 237
.
SB55-ASA1, s. 267m 24Section 267m. 16.70 (3) of the statutes is amended to read:
SB55-ASA1,59,4
116.70 (3) "Contractual services" includes all services, materials to be furnished
2by a service provider in connection with services, and any limited trades work
3involving less than $20,000 $30,000 to be done for or furnished to the state or any
4agency.
SB55-ASA1, s. 95 5Section 95. 16.70 (4m) of the statutes is created to read:
SB55-ASA1,59,66 16.70 (4m) "Information technology" has the meaning given in s. 22.01 (6).
SB55-ASA1, s. 96 7Section 96. 16.70 (15) of the statutes is created to read:
SB55-ASA1,59,88 16.70 (15) "Telecommunications" has the meaning given in s. 22.01 (10).
SB55-ASA1, s. 97 9Section 97. 16.71 (1) of the statutes is amended to read:
SB55-ASA1,59,1910 16.71 (1) Except as otherwise required under this section and s. 16.78 or as
11authorized in s. 16.74, the department shall purchase and may delegate to special
12designated agents the authority to purchase all necessary materials, supplies,
13equipment, all other permanent personal property and miscellaneous capital, and
14contractual services and all other expense of a consumable nature for all agencies.
15In making any delegation, the department shall require the agent to adhere to all
16requirements imposed upon the department in making purchases under this
17subchapter. All materials, services and other things and expense furnished to any
18agency and interest paid under s. 16.528 shall be charged to the proper appropriation
19of the agency to which furnished.
SB55-ASA1, s. 98 20Section 98. 16.71 (1m) of the statutes is created to read:
SB55-ASA1,60,321 16.71 (1m) The department shall not delegate to any executive branch agency,
22other than the board of regents of the University of Wisconsin System, the authority
23to enter into any contract for materials, supplies, equipment, or contractual services
24relating to information technology or telecommunications prior to review and
25approval of the contract by the chief information officer. No executive branch agency,

1other than the board of regents of the University of Wisconsin System, may enter into
2any such contract without review and approval of the contract by the chief
3information officer.
SB55-ASA1, s. 99 4Section 99. 16.71 (2m) of the statutes is created to read:
SB55-ASA1,60,95 16.71 (2m) The department of administration shall delegate authority to make
6all purchases for the department of electronic government to the department of
7electronic government. This delegation may not be withdrawn, but the department
8of electronic government may elect to make any purchase through the department
9of administration.
SB55-ASA1, s. 275m 10Section 275m. 16.71 (2s) of the statutes is created to read:
SB55-ASA1,60,1211 16.71 (2s) The department shall delegate authority to the ethics board to make
12purchases authorized under s. 22.03 (2) (n).
SB55-ASA1, s. 100 13Section 100. 16.71 (4) of the statutes is amended to read:
SB55-ASA1,60,1814 16.71 (4) The With the approval of the department of electronic government,
15the
department of administration shall delegate authority to the technology for
16educational achievement in Wisconsin board to make purchases of educational
17technology equipment for use by school districts, cooperative educational service
18agencies and public educational institutions in this state, upon request of the board.
SB55-ASA1, s. 101 19Section 101. 16.71 (6) of the statutes is created to read:
SB55-ASA1,60,2520 16.71 (6) The department may assess any agency or municipality to which it
21provides services under this subchapter for the cost of the services provided to the
22agency or municipality. The department may also identify savings that the
23department determines to have been realized by an agency to which it provides
24services under this subchapter and may assess the agency for not more than the
25amount of the savings identified by the department.
SB55-ASA1, s. 102
1Section 102. 16.72 (2) (a) of the statutes is amended to read:
SB55-ASA1,61,132 16.72 (2) (a) The department of administration shall prepare standard
3specifications, as far as possible, for all state purchases. By "standard specifications"
4is meant a specification, either chemical or physical or both, prepared to describe in
5detail the article which the state desires to purchase, and trade names shall not be
6used. On the formulation, adoption and modification of any standard specifications,
7the department of administration shall also seek and be accorded without cost, the
8assistance, advice and cooperation of other agencies and officers. Each specification
9adopted for any commodity shall, insofar as possible, satisfy the requirements of any
10and all agencies which use it in common. Any specifications for the purchase of
11materials, supplies, equipment, or contractual services for information technology
12or telecommunications purposes are subject to the approval of the chief information
13officer.
SB55-ASA1, s. 103 14Section 103. 16.72 (2) (b) of the statutes is amended to read:
SB55-ASA1,61,2415 16.72 (2) (b) Except as provided in par. (a) and ss. 16.25 (4) (b), 16.751 and
16565.25 (2) (a) 4., the department shall prepare or review specifications for all
17materials, supplies, equipment, other permanent personal property and contractual
18services not purchased under standard specifications. Such "nonstandard
19specifications" may be generic or performance specifications, or both, prepared to
20describe in detail the article which the state desires to purchase either by its physical
21properties or programmatic utility. When appropriate for such nonstandard items
22or services, trade names may be used to identify what the state requires, but
23wherever possible 2 or more trade names shall be designated and the trade name of
24any Wisconsin producer, distributor or supplier shall appear first.
SB55-ASA1, s. 104 25Section 104. 16.72 (2) (d) of the statutes is amended to read:
SB55-ASA1,62,5
116.72 (2) (d) Except as permitted in s. ss. 16.75 (6) (am) and 16.751, to the extent
2possible, the department and any other designated purchasing agent under s. 16.71
3(1) shall write specifications for the purchase of materials, supplies, commodities,
4equipment and contractual services so as to permit their purchase from prison
5industries, as created under s. 303.01 (1).
SB55-ASA1, s. 105 6Section 105. 16.72 (4) (a) of the statutes is amended to read:
SB55-ASA1,62,187 16.72 (4) (a) Except as provided in s. ss. 16.71 and 16.74 or as otherwise
8provided in this subchapter and the rules promulgated under s. 16.74 and this
9subchapter, all supplies, materials, equipment and contractual services shall be
10purchased for and furnished to any agency only upon requisition to the department.
11The department shall prescribe the form, contents, number and disposition of
12requisitions and shall promulgate rules as to time and manner of submitting such
13requisitions for processing. No agency or officer may engage any person to perform
14contractual services without the specific prior approval of the department for each
15such engagement. Purchases of supplies, materials, equipment or contractual
16services by the department of electronic government, the legislature, the courts or
17legislative service or judicial branch agencies do not require approval under this
18paragraph.
SB55-ASA1, s. 106 19Section 106. 16.72 (8) of the statutes is amended to read:
SB55-ASA1,62,2520 16.72 (8) The division of information technology services of the department
21may purchase educational technology materials, supplies, equipment or contractual
22services from orders placed with the department by the technology for educational
23achievement in Wisconsin board on behalf of school districts, cooperative educational
24service agencies, technical college districts and the board of regents of the University
25of Wisconsin System.
SB55-ASA1, s. 107
1Section 107. 16.75 (1) (a) 1. of the statutes is amended to read:
SB55-ASA1,63,102 16.75 (1) (a) 1. All orders awarded or contracts made by the department for all
3materials, supplies, equipment, and contractual services to be provided to any
4agency, except as otherwise provided in par. (c) and subs. (2), (2g), (2m), (3m), (3t),
5(6), (7), (8), and (9) and ss. 16.73 (4) (a), 16.751, 16.754, 16.964 (8), 50.05 (7) (f), and
6287.15 (7) and 301.265, shall be awarded to the lowest responsible bidder, taking into
7consideration life cycle cost estimates under sub. (1m), when appropriate, the
8location of the agency, the quantities of the articles to be supplied, their conformity
9with the specifications, and the purposes for which they are required and the date
10of delivery.
SB55-ASA1, s. 108 11Section 108. 16.75 (3t) (a) of the statutes is amended to read:
SB55-ASA1,63,1312 16.75 (3t) (a) In this subsection, "form" has the meaning given under s. 16.97
1322.01 (5p).
SB55-ASA1, s. 109 14Section 109. 16.75 (3t) (c) (intro.) of the statutes is amended to read:
SB55-ASA1,64,615 16.75 (3t) (c) (intro.) The department of corrections shall periodically provide
16to the department of administration a current list of all materials, supplies,
17equipment or contractual services, excluding commodities, that are supplied by
18prison industries, as created under s. 303.01. The department of administration
19shall distribute the list to all designated purchasing agents under s. 16.71 (1). Prior
20Except as otherwise provided in sub. (6) (am), prior to seeking bids or competitive
21sealed proposals with respect to the purchase of any materials, supplies, equipment
22or contractual services enumerated in the list, the department of administration or
23any other designated purchasing agent under s. 16.71 (1) shall offer prison industries
24the opportunity to supply the materials, supplies, equipment or contractual services
25if the department of corrections is able to provide them at a price comparable to one

1which may be obtained through competitive bidding or competitive sealed proposals
2and is able to conform to the specifications, provided the specifications are written
3in accordance with s. 16.72 (2) (d). If the department of administration or other
4purchasing agent is unable to determine whether the price of prison industries is
5comparable, it may solicit bids or competitive proposals before awarding the order
6or contract. This paragraph does not apply to the printing of the following forms:
SB55-ASA1, s. 110 7Section 110. 16.75 (6) (am) 1. of the statutes is repealed.
SB55-ASA1, s. 111 8Section 111. 16.75 (6) (am) 2. of the statutes is renumbered 16.75 (6) (am) and
9amended to read:
SB55-ASA1,64,1510 16.75 (6) (am) Subsections (1) and (3t) do not apply to major procurements by
11the department of electronic government. Annually not later than October 1, the
12department of electronic government shall report to the department of
13administration, in the form specified by the secretary, concerning all procurements
14by the department of electronic government during the preceding fiscal year that
15were not made in accordance with the requirements of subs. (1) and (3t)
.
SB55-ASA1, s. 112 16Section 112. 16.751 (1) of the statutes is repealed.
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