Amendment SSA1-SB40

SB40-SSA1,31,14 16.527 (4) (h) 1. Subject to subd. 2., the terms and conditions of an interest exchange agreement under par. (e) shall not be structured so that, as of the trade date of the agreement, both of the following are reasonably expected to occur:

SB40-SSA1,31,19 a. The aggregate expected debt service and net exchange payments relating to the agreement during the fiscal year in which the trade date occurs will be less than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable during that fiscal year if the agreement is not executed.

SB40-SSA1,31,23 b. The aggregate expected debt service and net exchange payments relating to the agreement in subsequent fiscal years will be greater than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable in those fiscal years if the agreement is not executed.

SB40-SSA1,31,24 2. Subd. 1. shall not apply if either of the follow occurs:

SB40-SSA1,32,4 a. The department receives a determination by the independent financial consulting firm that the terms and conditions of the agreement reflect payments by the state that represent on-market rates as of the trade date for the particular type of agreement.

SB40-SSA1,32,9 b. The department provides written notice to the joint committee on finance of its intention to enter into an agreement that is reasonably expected to satisfy subd. 1., and the joint committee on finance either approves or disapproves, in writing, the department's entering into the agreement within 14 days of receiving the written notice from the commission.

SB40-SSA1,32,12 3. This paragraph shall not limit the liability of the state under an agreement if actual contracted net exchange payments in any fiscal year exceed original expectations.

SB40-SSA1, s. 88d Section 88d. 16.527 (4) (i) of the statutes is created to read:

SB40-SSA1,32,15 16.527 (4) (i) With respect to any interest exchange agreement or agreements specified in par. (e), all of the following shall apply:

SB40-SSA1,32,18 1. The department shall contract with an independent financial consulting firm to determine if the terms and conditions of the agreement reflect a fair market value, as of the proposed date of the execution of the agreement.

SB40-SSA1,32,22 2. The interest exchange agreement must identify by maturity, bond issue, or bond purpose the obligation to which the agreement is related. The determination of the department included in an interest exchange agreement that such agreement relates to an obligation shall be conclusive.

SB40-SSA1,33,2 3. The resolution authorizing the department to enter into any interest exchange agreement shall require that the terms and conditions of the agreement reflect a fair market value as of the date of execution of the agreement, as reflected by the determination of the independent financial consulting firm under subd. 1., and shall establish guidelines for any such agreement, including the following:

SB40-SSA1,33,3 a. The conditions under which the department may enter into the agreements.

SB40-SSA1,33,4 b. The form and content of the agreements.

SB40-SSA1,33,5 c. The aspects of risk exposure associated with the agreements.

SB40-SSA1,33,6 d. The standards and procedures for counterparty selection.

SB40-SSA1,33,8 e. The standards for the procurement of, and the setting aside of reserves, if any, in connection with, the agreements.

SB40-SSA1,33,10 f. The provisions, if any, for collateralization or other requirements for securing any counterparty's obligations under the agreements.

SB40-SSA1,33,12 g. A system for financial monitoring and periodic assessment of the agreements.

SB40-SSA1, s. 88h Section 88h. 16.527 (4) (j) of the statutes is created to read:

SB40-SSA1,33,17 16.527 (4) (j) Semiannually, during any year in which the state is a party to an agreement entered into pursuant to par. (e), the department shall submit a report to the cochairpersons of the joint committee on finance listing all such agreements. The report shall include all of the following:

SB40-SSA1,33,19 1. A description of each agreement, including a summary of its terms and conditions, rates, maturity, and the estimated market value of each agreement.

SB40-SSA1,33,21 2. An accounting of amounts that were required to be paid and received on each agreement.

SB40-SSA1,33,23 3. Any credit enhancement, liquidity facility, or reserves, including an accounting of the costs and expenses incurred by the state.

SB40-SSA1,33,24 4. A description of the counterparty to each agreement.

SB40-SSA1,34,2 5. A description of the counterparty risk, the termination risk, and other risks associated with each agreement.

SB40-SSA1, s. 89b Section 89b. 16.528 (1) (a) of the statutes is amended to read:

SB40-SSA1,34,9 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, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, or 237, or 279.

SB40-SSA1, s. 90b Section 90b. 16.53 (2) of the statutes is amended to read:

SB40-SSA1,34,19 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, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, or 237, or 279.

SB40-SSA1, s. 91 Section 91. 16.53 (10) (a) of the statutes is amended to read:

SB40-SSA1,35,11 16.53 (10) (a) If an emergency arises which requires the department to draw vouchers for payments which will be in excess of available moneys in any state fund, the secretary, after notifying the joint committee on finance under par. (b), may prorate and establish priority schedules for all payments within each fund, including those payments for which a specific payment date is provided by statute, except as otherwise provided in this paragraph. The secretary shall draw all vouchers according to the preference provided in this paragraph. All direct or indirect payments of principal or interest on state bonds and notes issued under subch. I of ch. 18 and payments due, if any, under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a) relating to any public debt contracted under subchs. I and IV of ch. 18 have first priority. All direct or indirect payments of principal or interest on state notes issued under subch. III of ch. 18 have 2nd priority. No payment having a 1st or 2nd priority may be prorated or reduced under this subsection. All state employee payrolls have 3rd priority. The secretary shall draw all remaining vouchers according to a priority determined by the secretary. The secretary shall maintain records of all claims prorated under this subsection.

SB40-SSA1, s. 92b Section 92b. 16.54 (9) (a) 1. of the statutes is amended to read:

SB40-SSA1,35,18 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 subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, or 237, or 279.

SB40-SSA1, s. 93 Section 93 . 16.54 (12) (a) of the statutes is amended to read:

SB40-SSA1,35,25 16.54 (12) (a) The Except as provided under 2007 Wisconsin Act .... (this act), section 9121 (1m), the department of health and family services may not expend or encumber any moneys received under s. 20.435 (8) (mm) unless the department of health and family services submits a plan for the expenditure of the moneys to the department of administration and the department of administration approves the plan.

SB40-SSA1, s. 94 Section 94 . 16.54 (12) (a) of the statutes, as affected by 2007 Wisconsin Act .... (this act), is amended to read:

SB40-SSA1,36,8 16.54 (12) (a) Except as provided under 2007 Wisconsin Act .... (this act), section 9121 (1m), the The department of health and family services may not expend or encumber any moneys received under s. 20.435 (8) (mm) unless the department of health and family services submits a plan for the expenditure of the moneys to the department of administration and the department of administration approves the plan.

SB40-SSA1, s. 95 Section 95 . 16.54 (12) (b) of the statutes is amended to read:

SB40-SSA1,36,16 16.54 (12) (b) The Except as provided under 2007 Wisconsin Act .... (this act), section 9155 (1m), the department of workforce development children and families may not expend or encumber any moneys received under s. 20.445 credited to the appropriation account under s. 20.437 (2) (mm) or (3) (mm) unless the department of workforce development children and families submits a plan for the expenditure of the moneys to the department of administration and the department of administration approves the plan.

SB40-SSA1, s. 96 Section 96 . 16.54 (12) (b) of the statutes, as affected by 2007 Wisconsin Act .... (this act), is amended to read:

SB40-SSA1,36,24 16.54 (12) (b) Except as provided under 2007 Wisconsin Act .... (this act), section 9155 (1m), the The department of children and families may not expend or encumber any moneys credited to the appropriation account under s. 20.437 (2) (mm) or (3) (mm) unless the department of children and families submits a plan for the expenditure of the moneys to the department of administration and the department of administration approves the plan.

SB40-SSA1, s. 97 Section 97 . 16.54 (12) (d) of the statutes is amended to read:

SB40-SSA1,37,8 16.54 (12) (d) At the end of each fiscal year, the department of administration shall determine the amount of moneys that remain in the appropriation accounts under ss. 20.435 (8) (mm) and 20.445 (3) (mm) that have not been encumbered or expended under 2007 Wisconsin Act .... (this act), section 9121 (1m), or approved for encumbrance or expenditure by the department pursuant to a plan submitted under par. (a) or (b) and shall require that such moneys be lapsed to the general fund. The department shall notify the cochairpersons of the joint committee on finance, in writing, of the department's action under this paragraph.

SB40-SSA1, s. 98 Section 98 . 16.54 (12) (d) of the statutes, as affected by 2007 Wisconsin Act .... (this act), section 97, is amended to read:

SB40-SSA1,37,18 16.54 (12) (d) At the end of each fiscal year, the department of administration shall determine the amount of moneys that remain in the appropriation accounts under ss. 20.435 (8) (mm) and 20.445 20.437 (2) (mm) and (3) (mm) that have not been encumbered or expended under 2007 Wisconsin Act .... (this act), section 9121 9155 (1m), or approved for encumbrance or expenditure by the department pursuant to a plan submitted under par. (a) or (b) and shall require that such moneys be lapsed to the general fund. The department shall notify the cochairpersons of the joint committee on finance, in writing, of the department's action under this paragraph.

SB40-SSA1, s. 99 Section 99. 16.54 (12) (d) of the statutes, as affected by 2007 Wisconsin Act .... (this act), section 98, is repealed and recreated to read:

SB40-SSA1,38,2 16.54 (12) (d) At the end of each fiscal year, the department of administration shall determine the amount of moneys that remain in the appropriation accounts under ss. 20.435 (8) (mm) and 20.437 (2) (mm) and (3) (mm) that have not been approved for encumbrance or expenditure by the department pursuant to a plan submitted under par. (a) or (b) and shall require that such moneys be lapsed to the general fund. The department shall notify the cochairpersons of the joint committee on finance, in writing, of the department's action under this paragraph.

SB40-SSA1, s. 100b Section 100b. 16.70 (2) of the statutes is amended to read:

SB40-SSA1,38,5 16.70 (2) "Authority" means a body created under subch. II of ch. 114 or subch. III of ch. 149 or under ch. 231, 232, 233, 234, 235, or 237, or 279.

SB40-SSA1, s. 101d Section 101d. 16.71 (1m) of the statutes is amended to read:

SB40-SSA1,38,17 16.71 (1m) The department shall not delegate to any executive branch agency, other than the board of regents of the University of Wisconsin System, the authority to enter into any contract for materials, supplies, equipment, or contractual services relating to information technology or telecommunications prior to review and approval of the contract by the department. No executive branch agency, other than the board of regents of the University of Wisconsin System, may enter into any such contract without review and approval of the contract by the department. Any executive branch agency that enters into a contract relating to information technology under this section shall comply with the requirements of s. 16.973 (13). Any delegation to the board of regents of the University of Wisconsin System is subject to the limitations prescribed in s. 36.11 (49).

SB40-SSA1, s. 101k Section 101k. 16.72 (2) (e) (intro.) of the statutes is amended to read:

SB40-SSA1,39,4 16.72 (2) (e) (intro.) In writing the specifications under this subsection, the department and any other designated purchasing agent under s. 16.71 (1) shall incorporate requirements for the purchase of products made from recycled materials and recovered materials if their use is technically and economically feasible. Each authority other than the University of Wisconsin Hospitals and Clinics Authority, the Lower Fox River Remediation Authority, and the Health Insurance Risk-Sharing Plan Authority, in writing specifications for purchasing by the authority, shall incorporate requirements for the purchase of products made from recycled materials and recovered materials if their use is technically and economically feasible. The specifications shall include requirements for the purchase of the following materials:

SB40-SSA1, s. 101L Section 101L. 16.72 (2) (f) of the statutes is amended to read:

SB40-SSA1,39,15 16.72 (2) (f) In writing specifications under this subsection, the department, any other designated purchasing agent under s. 16.71 (1), and each authority other than the University of Wisconsin Hospitals and Clinics Authority, the Lower Fox River Remediation Authority, and the Health Insurance Risk-Sharing Plan Authority shall incorporate requirements relating to the recyclability and ultimate disposition of products and, wherever possible, shall write the specifications so as to minimize the amount of solid waste generated by the state, consistent with the priorities established under s. 287.05 (12). All specifications under this subsection shall discourage the purchase of single-use, disposable products and require, whenever practical, the purchase of multiple-use, durable products.

SB40-SSA1, s. 102 Section 102. 16.75 (1) (a) 1. of the statutes, as affected by 2005 Wisconsin Act 141, is amended to read:

SB40-SSA1,40,2 16.75 (1) (a) 1. All orders awarded or contracts made by the department for all materials, supplies, equipment, and contractual services to be provided to any agency, except as otherwise provided in par. (c) and subs. (2), (2g), (2m), (3m), (3t), (6), (7), (8), (9), (10e), and (10m) and ss. 16.73 (4) (a), 16.751, 16.754, 16.964 (8), 50.05 (7) (f), 153.05 (2m) (a), and 287.15 (7), and 301.265, shall be awarded to the lowest responsible bidder, taking into consideration life cycle cost estimates under sub. (1m), when appropriate, the location of the agency, the quantities of the articles to be supplied, their conformity with the specifications, and the purposes for which they are required and the date of delivery.

SB40-SSA1, s. 102e Section 102e. 16.75 (1m) of the statutes is amended to read:

SB40-SSA1,40,17 16.75 (1m) The department shall award each order or contract for materials, supplies or equipment on the basis of life cycle cost estimates, whenever such action is appropriate. Each authority other than the University of Wisconsin Hospitals and Clinics Authority and, the Lower Fox River Remediation Authority, the Wisconsin Aerospace Authority, and the Health Insurance Risk-Sharing Plan Authority shall award each order or contract for materials, supplies or equipment on the basis of life cycle cost estimates, whenever such action is appropriate. The terms, conditions and evaluation criteria to be applied shall be incorporated in the solicitation of bids or proposals. The life cycle cost formula may include, but is not limited to, the applicable costs of energy efficiency, acquisition and conversion, money, transportation, warehousing and distribution, training, operation and maintenance and disposition or resale. The department shall prepare documents containing technical guidance for the development and use of life cycle cost estimates, and shall make the documents available to local governmental units.

SB40-SSA1, s. 103 Section 103. 16.75 (6) (bm) of the statutes is amended to read:

SB40-SSA1,40,25 16.75 (6) (bm) If the secretary determines that it is in the best interest of this state to do so, he or she may waive any requirement under subs. (1) to (5) and ss. 16.705 and 16.72 (2) (e) and (f) and (5) with respect to any contract entered into by the department of workforce development children and families under s. 49.143, if the department of workforce development children and families presents the secretary with a process for the procurement of contracts under s. 49.143 and the secretary approves the process.

SB40-SSA1, s. 103g Section 103g. 16.75 (8) of the statutes is amended to read:

SB40-SSA1,41,8 16.75 (8) (a) 1. The department, any other designated purchasing agent under s. 16.71 (1), any agency making purchases under s. 16.74, and each authority other than the University of Wisconsin Hospitals and Clinics Authority, the Lower Fox River Remediation Authority, and the Health Insurance Risk-Sharing Plan Authority shall, to the extent practicable, make purchasing selections using specifications developed under s. 16.72 (2) (e) to maximize the purchase of materials utilizing recycled materials and recovered materials.

SB40-SSA1,41,14 2. Each agency and authority other than the University of Wisconsin Hospitals and Clinics Authority, the Lower Fox River Remediation Authority, and the Health Insurance Risk-Sharing Plan Authority shall ensure that the average recycled or recovered content of all paper purchased by the agency or authority measured as a proportion, by weight, of the fiber content of paper products purchased in a fiscal year, is not less than 40% of all purchased paper.

SB40-SSA1, s. 103h Section 103h. 16.75 (9) of the statutes is amended to read:

SB40-SSA1,41,21 16.75 (9) The department, any other designated purchasing agent under s. 16.71 (1), any agency making purchases under s. 16.74, and any authority other than the University of Wisconsin Hospitals and Clinics Authority, the Lower Fox River Remediation Authority, and the Health Insurance Risk-Sharing Plan Authority shall, to the extent practicable, make purchasing selections using specifications prepared under s. 16.72 (2) (f).

SB40-SSA1, s. 104b Section 104b. 16.765 (1) of the statutes is amended to read:

SB40-SSA1,42,8 16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, and the Bradley Center Sports and Entertainment Corporation shall include in all contracts executed by them a provision obligating the contractor not to discriminate against any employee or applicant for employment because of age, race, religion, color, handicap, sex, physical condition, developmental disability as defined in s. 51.01 (5), sexual orientation as defined in s. 111.32 (13m), or national origin and, except with respect to sexual orientation, obligating the contractor to take affirmative action to ensure equal employment opportunities.

SB40-SSA1, s. 105b Section 105b. 16.765 (2) of the statutes is amended to read:

SB40-SSA1,43,2 16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, and the Bradley Center Sports and Entertainment Corporation shall include the following provision in every contract executed by them: "In connection with the performance of work under this contract, the contractor agrees not to discriminate against any employee or applicant for employment because of age, race, religion, color, handicap, sex, physical condition, developmental disability as defined in s. 51.01 (5), sexual orientation or national origin. This provision shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Except with respect to sexual orientation, the contractor further agrees to take affirmative action to ensure equal employment opportunities. The contractor agrees to post in conspicuous places, available for employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of the nondiscrimination clause".

SB40-SSA1, s. 106b Section 106b. 16.765 (4) of the statutes is amended to read:

SB40-SSA1,43,9 16.765 (4) Contracting agencies, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, and the Bradley Center Sports and Entertainment Corporation shall take appropriate action to revise the standard government contract forms under this section.

SB40-SSA1, s. 107b Section 107b. 16.765 (5) of the statutes is amended to read:

SB40-SSA1,44,2 16.765 (5) The head of each contracting agency and the boards of directors of the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, and the Bradley Center Sports and Entertainment Corporation shall be primarily responsible for obtaining compliance by any contractor with the nondiscrimination and affirmative action provisions prescribed by this section, according to procedures recommended by the department. The department shall make recommendations to the contracting agencies and the boards of directors of the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, and the Bradley Center Sports and Entertainment Corporation for improving and making more effective the nondiscrimination and affirmative action provisions of contracts. The department shall promulgate such rules as may be necessary for the performance of its functions under this section.

SB40-SSA1, s. 108b Section 108b. 16.765 (6) of the statutes is amended to read:

SB40-SSA1,44,12 16.765 (6) The department may receive complaints of alleged violations of the nondiscrimination provisions of such contracts. The department shall investigate and determine whether a violation of this section has occurred. The department may delegate this authority to the contracting agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation for processing in accordance with the department's procedures.

SB40-SSA1, s. 109b Section 109b. 16.765 (7) (intro.) of the statutes is amended to read:

SB40-SSA1,44,23 16.765 (7) (intro.) When a violation of this section has been determined by the department, the contracting agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation, the contracting agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation shall:

SB40-SSA1, s. 110b Section 110b. 16.765 (7) (d) of the statutes is amended to read:

SB40-SSA1,45,6 16.765 (7) (d) Direct the violating party to take immediate steps to prevent further violations of this section and to report its corrective action to the contracting agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation.

SB40-SSA1, s. 111b Section 111b. 16.765 (8) of the statutes is amended to read:

SB40-SSA1,45,23 16.765 (8) If further violations of this section are committed during the term of the contract, the contracting agency, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation may permit the violating party to complete the contract, after complying with this section, but thereafter the contracting agency, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation shall request the department to place the name of the party on the ineligible list for state contracts, or the contracting agency, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation may terminate the contract without liability for the uncompleted portion or any materials or services purchased or paid for by the contracting party for use in completing the contract.

SB40-SSA1, s. 112g Section 112g. 16.847 (2) of the statutes is created to read:

SB40-SSA1,46,6 16.847 (2) Energy conservation construction projects. The department may provide funding to agencies, as defined in s. 16.70 (1e), for energy conservation construction projects at state facilities under the jurisdiction of the agencies to enhance the energy efficiency of the facilities. The department shall prescribe standards for evaluation of proposed projects and allocation of available moneys for those projects under this subsection.

SB40-SSA1, s. 112r Section 112r. 16.847 (3) of the statutes is created to read:

SB40-SSA1,46,14 16.847 (3) Assessments. The department may annually assess any agency that receives funding under sub. (2) in an amount determined by the department not exceeding the agency's proportionate share of debt service costs incurred under s. 20.505 (5) (kd) or the savings in the agency's energy costs generated, whichever is greater, as a result of an energy conservation construction project that was funded by the department under sub. (2). The department shall credit all revenues received under this subsection to the appropriation account under s. 20.505 (5) (kd).

SB40-SSA1, s. 113 Section 113. 16.848 (2) (gc), (gg), (gn), (gr), (gt) and (gw) of the statutes are created to read:

SB40-SSA1,46,18 16.848 (2) (gc) Subsection (1) does not apply to property that is subject to sale by the department of military affairs under s. 21.19 (3) or 21.42 (3).