SB44: Bill Text

SB44,99,5 2. Appropriation obligations issued under this section may not exceed $750,000,000 in principal amount, excluding any obligations that have been defeased under a cash optimization program administered by the building commission. In addition to this limit on principal amount, the department may contract appropriation obligations as the department determines is desirable to fund or refund outstanding appropriation obligations issued under this section, to pay issuance or administrative expenses, to make deposits to reserve funds, to pay accrued or funded interest, to pay the costs of credit enhancement, or to make payments under other agreements entered into under sub. (4) (e).

SB44,99,13 (4) Terms. (a) Money may be borrowed and evidences of appropriation obligation issued therefor pursuant to one or more written authorizing certifications under sub. (5), unless otherwise provided in the certification, at any time, in any specific amounts, at any rates of interest, for any term, payable at any intervals, at any place, in any manner, and having any other terms or conditions that the department considers necessary or useful. Appropriation obligations may bear interest at variable or fixed rates, bear no interest, or bear interest payable only at maturity or upon redemption prior to maturity.

SB44,99,16 (b) The department may authorize evidences of appropriation obligation having any provisions for prepayment considered necessary or useful, including the payment of any premium.

SB44,99,22 (c) Interest shall cease to accrue on an appropriation obligation on the date that the obligation becomes due for payment if payment is made or duly provided for, but the obligation and accrued interest shall continue to be a binding obligation according to its terms until 6 years overdue for payment, or such longer period as may be required by federal law. At that time, unless demand for its payment has been made, it shall be extinguished and considered no longer outstanding.

SB44,99,25 (d) All money borrowed by the state pursuant to evidences of appropriation obligation issued under this section shall be lawful money of the United States, and all appropriation obligations shall be payable in such money.

SB44,100,9 (e) At the time of, or in anticipation of, contracting for the appropriation obligations and at any time thereafter so long as the appropriation obligations are outstanding, the department may enter into agreements and ancillary arrangements relating to the appropriation obligations, including trust indentures, liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. Any payments made or received pursuant to any such agreement or ancillary arrangement shall be made from or deposited into a program revenue appropriation account in the general fund.

SB44,100,17 (f) All evidences of appropriation obligation owned or held by any state fund are outstanding in all respects and the state agency controlling the fund shall have the same rights with respect to an evidence of appropriation obligation as a private party, but if any sinking fund acquires evidences of appropriation obligation that gave rise to such fund, the obligations are considered paid for all purposes and no longer outstanding and shall be canceled as provided in sub. (8) (e). All evidences of appropriation obligation owned by any state fund shall be registered to the fullest extent registrable.

SB44,100,22 (g) The state shall not be generally liable on evidences of appropriation obligation and evidences of appropriation obligation shall not be a debt of the state for any purpose whatsoever. Evidences of appropriation obligation, including the principal thereof and interest thereon, shall be payable only from amounts that the legislature may, from year to year, appropriate for the payment thereof.

SB44,101,4 (5) Procedures. (a) No evidence of appropriation obligation may be issued by the state unless the issuance is pursuant to a written authorizing certification. The certification shall set forth the aggregate principal amount of appropriation obligations authorized thereby, the manner of sale of the evidences of appropriation obligation, and the form and terms thereof. The certification shall be signed by the secretary, or his or her designee, and shall be transmitted to the governor and the state treasurer.

SB44,101,11 (b) Appropriation obligations may be sold at either public or private sale and may be sold at any price or percentage of par value. The department may provide in any authorizing certification for refunding obligations under sub. (7) that they be exchanged privately in payment and discharge of any of the outstanding obligations being refinanced. All appropriation obligations sold at public sale shall be noticed as provided in the authorizing certification. Any bid received at public sale may be rejected.

SB44,101,15 (6) Form. (a) Evidences of appropriation obligation may be in the form of bonds, notes, or other evidences of obligation, and may be issued in book-entry form or in certificated form. Notwithstanding s. 403.104 (1), every evidence of appropriation obligation is a negotiable instrument.

SB44,101,24 (b) Every evidence of appropriation obligation shall be executed in the name of and for the state by the governor and the state treasurer and shall be sealed with the great seal of the state or a facsimile thereof. The facsimile signature of either the governor or state treasurer, or both, may be imprinted in lieu of the manual signature of such officer, as the department directs, if approved by such officer. An evidence of appropriation obligation bearing the manual or facsimile signature of a person in office at the time such signature was signed or imprinted shall be fully valid notwithstanding that before or after the delivery thereof such person ceased to hold such office.

SB44,102,4 (c) Every evidence of appropriation obligation shall be dated not later than the date issued, shall contain a reference by date to the appropriate authorizing certification, shall state the limitation established in sub. (4) (g), and shall be in accordance with the authorizing certification.

SB44,102,7 (d) An evidence of appropriation obligation shall be in such form and contain such statements or terms as determined by the department, and may not conflict with law or with the appropriate authorizing certification.

SB44,102,20 (7) Refunding obligations. (a) 1. The department may authorize the issuance of appropriation obligation refunding obligations. Refunding obligations may be issued, subject to any contract rights vested in owners of obligations being refinanced, to refinance all or any part of one or more issue of obligations notwithstanding that the obligations may have been issued at different times. The principal amount of the refunding obligations may not exceed the sum of: the principal amount of the obligations being refinanced; applicable redemption premiums; unpaid interest on the obligations to the date of delivery or exchange of the refunding obligations; in the event the proceeds are to be deposited in trust as provided in par. (c), interest to accrue on the obligations from the date of delivery to the date of maturity or to the redemption date selected by the department, whichever is earlier; and the expenses incurred in the issuance of the refunding obligations and the payment of the obligations.

SB44,102,23 2. A determination by the department that a refinancing is advantageous or that any of the amounts provided subd. 1. should be included in the refinancing shall be conclusive.

SB44,103,11 (b) If the department determines to exchange refunding obligations, they may be exchanged privately for and in payment and discharge of any of the outstanding obligations being refinanced. Refunding obligations may be exchanged for such principal amount of the obligations being exchanged therefor as may be determined by the department to be necessary or advisable. The owners of the obligations being refunded who elect to exchange need not pay accrued interest on the refunding obligations if and to the extent that interest is accrued and unpaid on the obligations being refunded and to be surrendered. If any of the obligations to be refinanced are to be called for redemption, the department shall determine which redemption dates are to be used, if more than one date is applicable and shall, prior to the issuance of the refunding obligations, provide for notice of redemption to be given in the manner and at the times required by the certification authorizing the outstanding obligations.

SB44,103,16 (c) 1. The principal proceeds from the sale of any refunding obligations shall be applied either to the immediate payment and retirement of the obligations being refinanced or, if the obligations have not matured and are not presently redeemable, to the creation of a trust for and shall be pledged to the payment of the obligations being refinanced.

SB44,104,10 2. If a trust is created, a separate deposit shall be made for each issue of appropriation obligations being refinanced. Each deposit shall be with the state treasurer or a bank or trust company that is a member of the Federal Deposit Insurance Corporation. If the total amount of any deposit, including money other than sale proceeds but legally available for such purpose, is less than the principal amount of the obligations being refinanced and for the payment of which the deposit has been created and pledged, together with applicable redemption premiums and interest accrued and to accrue to maturity or to the date of redemption, then the application of the sale proceeds shall be legally sufficient only if the money deposited is invested in securities issued by the United States or one of its agencies, or securities fully guaranteed by the United States, and only if the principal amount of the securities at maturity and the income therefrom to maturity will be sufficient and available, without the need for any further investment or reinvestment, to pay at maturity or upon redemption the principal amount of the obligations being refinanced together with applicable redemption premiums and interest accrued and to accrue to maturity or to the date of redemption. The income from the principal proceeds of the securities shall be applied solely to the payment of the principal of and interest and redemption premiums on the obligations being refinanced, but provision may be made for the pledging and disposition of any surplus.

SB44,104,16 3. Nothing in this paragraph may be construed as a limitation on the duration of any deposit in trust for the retirement of obligations being refinanced that have not matured and that are not presently redeemable. Nothing in this paragraph may be construed to prohibit reinvestment of the income of a trust if the reinvestments will mature at such times that sufficient cash will be available to pay interest, applicable premiums, and principal on the obligations being refinanced.

SB44,105,3 (8) Fiscal regulations. (a) The state treasurer shall act as registrar for each evidence of appropriation obligation. No transfer of a registered evidence of appropriation obligation is valid unless made on a register maintained by the state treasurer, and the state may treat the registered owner as the owner of the instrument for all purposes. Payments of principal and interest shall be by electronic funds transfer, check, share draft, or other draft to the registered owner at the owner's address as it appears on the register, unless the department has otherwise provided. Information in the register is not available for inspection and copying under s. 19.35 (1). The department may make any other provision respecting registration as it considers necessary or useful. The state treasurer may enter into a contract for the performance of any of his or her functions relating to appropriation obligations.

SB44,105,8 (b) The state treasurer, or the treasurer's agent, shall maintain records containing a full and correct description of each evidence of appropriation obligation issued, identifying it, and showing its date, issue, amount, interest rate, payment dates, payments made, registration, destruction, and every other relevant transaction.

SB44,105,21 (c) The secretary may appoint one or more trustees and fiscal agents for each issue of appropriation obligations. The state treasurer may be denominated the trustee and the sole fiscal agent or a cofiscal agent for any issue of appropriation obligations. Every other fiscal agent shall be an incorporated bank or trust company authorized by the laws of the United States or of the state in which it is located to do a banking or trust company business. There may be deposited with a trustee, in a special account, moneys to be used only for the purposes expressly provided in the certification authorizing the issuance of evidences of appropriation obligation or an agreement between the department and the trustee. The department may make other provisions respecting trustees and fiscal agents as the department considers necessary or useful and may enter into a contract with any trustee or fiscal agent containing such terms, including compensation, and conditions in regard to the trustee or fiscal agent as the department considers necessary or useful.

SB44,106,5 (d) If any evidence of appropriation obligation is destroyed, lost, or stolen, the department shall execute and deliver a new evidence of appropriation obligation, upon filing with the department evidence satisfactory to the department that the evidence of appropriation obligation has been destroyed, lost, or stolen, upon providing proof of ownership thereof, and upon furnishing the department with indemnity satisfactory to it and complying with such other rules of the department and paying any expenses that the department or the state treasurer may incur. The department shall cancel the evidences of appropriation obligation surrendered to the department.

SB44,106,10 (e) Unless otherwise directed by the department, every evidence of appropriation obligation paid or otherwise retired shall be marked "canceled" and delivered, through the state treasurer if delivered to a fiscal agent other than the state treasurer, to the state auditor who shall destroy them and deliver to the state treasurer a certificate to that effect.

SB44,106,13 (9) Appropriation obligations as legal investments. Any of the following may legally invest any sinking funds, moneys, or other funds belonging to them or under their control in any appropriation obligations issued under this section:

SB44,106,15 (a) The state, the investment board, public officers, municipal corporations, political subdivisions, and public bodies.

SB44,106,19 (b) Banks and bankers, savings and loan associations, credit unions, trust companies, savings banks and institutions, investment companies, insurance companies, insurance associations, and other persons carrying on a banking or insurance business.

SB44,106,20 (c) Personal representatives, guardians, trustees, and other fiduciaries.

SB44,106,24 (10) Moral obligation pledge. Recognizing its moral obligation to do so, the legislature expresses its expectation and aspiration that it shall make timely appropriations from moneys in the general fund that are sufficient to pay the principal and interest due with respect to any appropriation obligations in any year.

SB44, s. 183 Section 183. 16.53 (1) (d) 1. of the statutes is amended to read:

SB44,107,5 16.53 (1) (d) 1. The secretary, with the approval of the joint committee on employment relations, shall fix the time, except as provided in ss. 106.21 (9) (c) and s. 106.215 (10) (c), and frequency for payment of salaries due elective and appointive officers and employees of the state. As determined under this subdivision, the salaries shall be paid either monthly, semimonthly or for each 2-week period.

SB44, s. 184 Section 184. 16.53 (5) of the statutes is amended to read:

SB44,107,14 16.53 (5) Warrants; what to specify. The secretary shall draw a warrant on the state treasurer treasury payable to the claimant for the amount allowed by the secretary upon every claim audited under sub. (1), except as authorized in s. 16.52 (7), 20.920, or 20.929, specifying from what fund to be paid, the particular law which that authorizes the claim to be paid out of the state treasury, and at the secretary's discretion the post-office address of the payee. The secretary shall not credit the treasurer for any sum of money paid out by the treasurer No moneys may be paid out of the state treasury under this section otherwise than upon such warrants.

SB44, s. 185 Section 185. 16.53 (10) (a) of the statutes is amended to read:

SB44,108,6 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, in consultation with the state treasurer, and 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 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 and shall provide written notice to the state treasurer when a potential cash flow emergency is anticipated.

SB44, s. 186 Section 186. 16.53 (10) (b) of the statutes is amended to read:

SB44,108,15 16.53 (10) (b) Before exercising authority under par. (a) the secretary shall, after consultation with the state treasurer, notify the joint committee on finance as to the need for and the procedures under which proration or priority schedules under par. (a) shall occur. If the joint committee on finance has not, within 2 working days after the notification, scheduled a meeting to review the secretary's proposal, the secretary may proceed with the proposed action. If, within 2 working days after the notification, the committee schedules a meeting, the secretary may not proceed with the proposed action until after the meeting is held.

SB44, s. 187 Section 187. 16.53 (13) (a) of the statutes is amended to read:

SB44,108,18 16.53 (13) (a) In this subsection, "agency" has the meaning given in s. 16.70 (1) (1e).

SB44, s. 188 Section 188. 16.54 (2) (b) of the statutes is amended to read:

SB44,109,5 16.54 (2) (b) Upon presentation by the department to the joint committee on finance of alternatives to the provisions under s. 16.385 16.27, the joint committee on finance may revise the eligibility criteria under s. 16.385 16.27 (5), benefit payments under s. 16.385 16.27 (6) or the amount allocated for crises under s. 16.385 16.27 (3) (e) 2. and the department shall implement those revisions. Benefits or eligibility criteria so revised shall take into account and be consistent with the requirements of federal regulations promulgated under 42 USC 8621 to 8629. If funds received under 42 USC 8621 to 8629 in a federal fiscal year total less than 90% of the amount received in the previous federal fiscal year, the department shall submit to the joint committee on finance a plan for expenditure of the funds. The department may not use the funds unless the committee approves the plan.

SB44, s. 189 Section 189. 16.545 (9) of the statutes is amended to read:

SB44,109,13 16.545 (9) To initiate contacts with the federal government for the purpose of facilitating participation by agencies, as defined in s. 16.70 (1) (1e), 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 an agency to which it provides services under this subsection a fee for the expenses incurred by the department in providing those services.

SB44, s. 190 Section 190. 16.61 (2) (af) of the statutes is amended to read:

SB44,109,15 16.61 (2) (af) "Form" has the meaning specified in s. 22.01 16.97 (5p).

SB44, s. 191 Section 191. 16.61 (3n) of the statutes is amended to read:

SB44,109,18 16.61 (3n) Exempt forms. The board may not receive or investigate complaints about the forms specified in s. 22.03 16.971 (2m).

SB44, s. 192 Section 192. 16.70 (1) of the statutes is renumbered 16.70 (1e).

SB44, s. 193 Section 193. 16.70 (1b) of the statutes is created to read:

SB44,109,22 16.70 (1b) "Affiliate" means an individual or business that controls, is controlled by, or is under common control with another individual or business.

SB44, s. 194 Section 194. 16.70 (2e) of the statutes is created to read:

SB44,109,25 16.70 (2e) "Business" means a corporation, partnership, limited liability company, association, or sole proprietorship operated for profit.

SB44, s. 195 Section 195. 16.70 (3e) of the statutes is created to read:

SB44,110,3 16.70 (3e) "Control" means to own, directly or indirectly, more than 10% of the interest in or voting securities of a business.

SB44, s. 196 Section 196. 16.70 (3m) of the statutes is amended to read:

SB44,110,6 16.70 (3m) "Educational technology" has the meaning given in s. 44.70 115.997 (3).

SB44, s. 197 Section 197. 16.70 (4m) of the statutes is amended to read:

SB44,110,9 16.70 (4m) "Information technology" has the meaning given in s. 22.01 16.97 (6).

SB44, s. 198 Section 198. 16.70 (15) of the statutes is amended to read:

SB44,110,11 16.70 (15) "Telecommunications" has the meaning given in s. 22.01 16.97 (10).

SB44, s. 199 Section 199. 16.70 (16) of the statutes is created to read:

SB44,110,16 16.70 (16) "Voting securities" means securities that confer upon the holder the right to vote for the election of members of the board of directors or similar governing body of a business, or are convertible into, or entitle the holder to receive upon their exercise, securities that confer such a right to vote.

SB44, s. 200 Section 200. 16.705 (1m) of the statutes is amended to read:

SB44,110,20 16.705 (1m) Subsection (1) does not apply to contracts entered into by the volunteer fire fighter and emergency medical technician service award board under s. 16.25 560.9813 (4) (b).

SB44, s. 201 Section 201. 16.705 (3) (intro.) of the statutes is amended to read:

SB44,111,2 16.705 (3) (intro.) Contracts for contractual services shall be submitted by the department for the review and approval of the The secretary of employment relations prior to award, under conditions established by rule of the department. The secretary of employment relations, shall review such contracts for contractual services in order to ensure that agencies:

SB44, s. 202 Section 202. 16.71 (1m) of the statutes is amended to read:

SB44,111,15 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 chief information officer department. The department shall not delegate to any executive branch agency the authority to enter into any contract for materials, supplies, equipment, or contractual services relating to 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 for which review is required under this subsection without review and approval of the contract by the chief information officer department.

SB44, s. 203 Section 203. 16.71 (2m) of the statutes is repealed.

SB44, s. 204 Section 204. 16.71 (4) of the statutes is amended to read:

SB44,112,2 16.71 (4) With the approval of the department of electronic government Upon request of the department of public instruction, the department of administration shall delegate authority to the technology for educational achievement in Wisconsin board department of public instruction to make purchases of educational technology equipment for use by school districts, cooperative educational service agencies, and public educational institutions in this state, upon request of the board and to enter into cooperative purchasing agreements under s. 16.73 (1) under which participating school districts and cooperative educational service agencies may contract for their professional employees to receive training concerning the effective use of educational technology.

SB44, s. 205 Section 205. 16.71 (5) of the statutes is amended to read:

SB44,112,6 16.71 (5) The department shall delegate authority to the volunteer fire fighter and emergency medical technician service award board to enter into contracts under s. 16.25 560.9813 (4) (b).

SB44, s. 206 Section 206. 16.72 (2) (a) of the statutes is amended to read:

SB44,112,19 16.72 (2) (a) The department of administration shall prepare standard specifications, as far as possible, for all state purchases. By "standard specifications" is meant a specification, either chemical or physical or both, prepared to describe in detail the article which the state desires to purchase, and trade names shall not be used. On the formulation, adoption and modification of any standard specifications, the department of administration shall also seek and be accorded without cost, the assistance, advice and cooperation of other agencies and officers. Each specification adopted for any commodity shall, insofar as possible, satisfy the requirements of any and all agencies which use it in common. Any specifications for the purchase of materials, supplies, equipment, or contractual services for information technology or telecommunications purposes are subject to the approval of the chief information officer.

SB44, s. 207 Section 207. 16.72 (2) (b) of the statutes is amended to read:

SB44,113,6 16.72 (2) (b) Except as provided in par. (a) and ss. 16.25 (4) (b), 16.751 and , 560.9813 (4) (b), and 565.25 (2) (a) 4., the department shall prepare or review specifications for all materials, supplies, equipment, other permanent personal property and contractual services not purchased under standard specifications. Such "nonstandard specifications" may be generic or performance specifications, or both, prepared to describe in detail the article which the state desires to purchase either by its physical properties or by its programmatic utility. When appropriate for such nonstandard items or services, trade names may be used to identify what the state requires, but wherever possible 2 or more trade names shall be designated and the trade name of any Wisconsin producer, distributor or supplier shall appear first.

SB44, s. 208 Section 208. 16.72 (4) (a) of the statutes is amended to read:

SB44,113,18 16.72 (4) (a) Except as provided in ss. 16.71 and 16.74 or as otherwise provided in this subchapter and the rules promulgated under s. 16.74 and this subchapter, all supplies, materials, equipment and contractual services shall be purchased for and furnished to any agency only upon requisition to the department. The department shall prescribe the form, contents, number and disposition of requisitions and shall promulgate rules as to time and manner of submitting such requisitions for processing. No agency or officer may engage any person to perform contractual services without the specific prior approval of the department for each such engagement. Purchases of supplies, materials, equipment or contractual services by the department of electronic government, the legislature, the courts or legislative service or judicial branch agencies do not require approval under this paragraph.

SB44, s. 209 Section 209. 16.72 (4) (b) of the statutes is amended to read:

SB44,114,3 16.72 (4) (b) The department shall promulgate rules for the declaration as surplus of supplies, materials and equipment in any agency and for the transfer to other agencies or for the disposal by private or public sale of supplies, materials and equipment. In either case due credit shall be given to the agency releasing the same , the department shall deposit the net proceeds in the budget stabilization fund, except that the department shall transfer any supplies, materials or equipment declared to be surplus to the department of tourism, upon request of the department of tourism, at no cost, if the transfer is permitted by the agency having possession of the supplies, materials or equipment.

SB44, s. 210 Section 210. 16.72 (8) of the statutes is amended to read:

SB44,114,10 16.72 (8) The department may purchase educational technology materials, supplies, equipment, or contractual services from orders placed with the department by the technology for educational achievement in Wisconsin board department of public instruction on behalf of school districts, cooperative educational service agencies, technical college districts, and the board of regents of the University of Wisconsin System.

SB44, s. 211 Section 211. 16.75 (1) (a) 1. of the statutes is amended to read:

SB44,114,20 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), and (9), and (10m) and ss. 16.73 (4) (a), 16.751, 16.754, 16.964 (8), 50.05 (7) (f), and 287.15 (7), 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.

SB44, s. 212 Section 212. 16.75 (3t) (a) of the statutes is amended to read: