LRB-2442/1
MPG&CMH:sac:jm
2013 - 2014 LEGISLATURE
June 4, 2013 - Introduced by Representatives Kerkman, Tittl, A. Ott, Petryk, Ripp,
Mursau, Bernier, Weininger and Ballweg, cosponsored by Senators Cowles,
Vinehout, Carpenter, Harsdorf, Petrowski, T. Cullen, Schultz, Kedzie and
Miller. Referred to Joint Legislative Audit Committee.
AB228,1,11 1An Act to renumber and amend 13.94 (1) (dr); to amend 1.14 (1) (b), 13.92 (1)
2(b) 1. b., 13.94 (1s) (c) 5., 16.004 (17), 16.52 (6) (a), 16.53 (13) (a), 16.545 (9), 16.70
3(1e), 16.765 (1), 16.765 (2), 16.765 (5), 16.765 (6), 16.765 (7) (intro.), 16.765 (7)
4(d), 16.765 (8), 16.84 (14), 16.847 (2) (a), 16.855 (16) (b) 1., 16.891 (1) (a), 16.967
5(1) (a), 16.97 (1m), 19.42 (10) (sm), 19.42 (13) (om), 20.505 (5) (ke), 20.866 (2)
6(ws), 20.867 (3) (kd), 238.02 (1), 238.03 (2) (c), 238.03 (2) (e) and 250.20 (1) (k);
7and to create 13.94 (1) (dr) 1., 13.94 (1) (dr) 2., 238.02 (1g), 238.02 (1r), 238.045,
8238.07 (2) (am), 238.07 (2) (dm), 238.07 (2) (fm) and 238.07 (2) (gm) of the
9statutes; relating to: board of directors, powers and duties, including
10reporting requirements, and financial audits of the Wisconsin Economic
11Development Corporation.
Analysis by the Legislative Reference Bureau
This bill makes a number of changes to the laws governing the Wisconsin
Economic Development Corporation (WEDC), including the following:
1. WEDC administers, develops, and implements economic development
programs that have the purpose of encouraging the establishment and growth of

businesses in this state. Each year, WEDC submits a report by October l to the Joint
Legislative Audit Committee and each house of the legislature that provides
information about the progress of WEDC's economic development programs during
the previous fiscal year. That report must contain a description of each program, a
comparison of expected and actual program outcomes, the number of grants or loans
made under each program, the amount of each grant or loan, the recipient of each
grant or loan, the sum total of all grants and loans awarded by WEDC under an
economic development program, and any recommended changes to each program.
The bill requires WEDC to include all of the following additional information
in its annual report:
a. Quantifiable performance measures directly related to the purpose of each
economic development program, including an accounting of the location and
industry classification, by municipality, of each job created or retained in the state
in the previous fiscal year as a result of the program.
b. The amount of tax benefits that WEDC allocated, or verified to the
Department of Revenue (DOR), under each program in the previous fiscal year.
c. An identification of each recipient of a tax benefit that WEDC allocated, or
verified to DOR, during the previous fiscal year.
d. The total number of recipients of a grant, loan, or tax benefit that satisfied
the certain reporting obligations to WEDC and a list identifying each recipient of a
grant, loan, or tax benefit that failed to satisfy those obligations.
2. Currently, the board of directors of WEDC includes six members who are
nominated by the governor and appointed with the advice and consent of the senate
and who serve at the pleasure of the governor; three members appointed by the
speaker of the assembly, consisting of one majority and one minority party
representative to the assembly and one person employed in the private sector; and
three members appointed by the senate majority leader, consisting of one majority
and one minority party senator and one person employed in the private sector.
Under the bill, the members of the board nominated by the governor no longer
serve at the pleasure of the governor but serve six-year, staggered terms. In
addition, the members of the board employed in the private sector and appointed by
the speaker of the assembly and senate majority leader no longer serve at the
pleasure of the speaker or majority leader but serve six-year terms.
3. Under current law, the governor serves as the chairperson of WEDC's board.
Under the bill, the board must also elect one of its public members to serve as the
board's lead director for a two-year term. The lead director must have significant
corporate management experience. Under the bill, the lead director is to chair
meetings of the board in the chairperson's absence, chair the governance committee,
described below, serve as a liaison between the chairperson and the other board
members, work with the chairperson to ensure adequate committee structure for any
committees the board establishes, and carry out other duties as assigned by the
board or the governance committee.
4. The bill further requires WEDC's board to establish a governance committee.
In addition to the lead director, who serves as chair of the governance committee, the
governance committee must include two of the board's public members. The bill

directs the governance committee to develop principles for the board's oversight of
WEDC, oversee the board's operations, recommend membership for committees the
board establishes, assist the chairperson to identify qualified candidates to fill
vacancies on the board, and facilitate communication between the members of the
board and the chief executive officer of WEDC.
5. Under current law, the Legislative Audit Bureau is required to conduct a
financial audit of WEDC every two years and a program evaluation audit of the
economic development programs administered by WEDC every two years. The bill
requires that the financial audit be conducted annually until June 30, 2019, after
which point, the financial audit reverts to being conducted every two years.
6. In addition to other powers specifically enumerated in the statutes, current
law grants WEDC all the powers necessary or convenient to carry out its purposes.
The bill limits WEDC's power to establish a nonprofit organization by requiring
WEDC to submit any plan to establish a nonprofit organization to the Joint
Committee on Finance under passive review.
7. Under current law, with certain exceptions, the Department of
Administration (DOA) must purchase, or may delegate the authority to purchase, all
necessary materials, supplies, equipment, all other permanent personal property
and miscellaneous capital, and contractual services for all agencies. DOA, or its
delegated agents, may contract for services that can be performed more economically
or efficiently by contract. With exceptions, DOA must award orders and contracts
to the lowest responsible bidders or most competitive proposal. If the estimated cost
of an expenditure exceeds $50,000, DOA must solicit bids or competitive sealed
proposals. This bill adds WEDC to the definition of agency for purposes of state
procurement so that WEDC is subject to the same laws regulating agency
purchasing.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB228,1 1Section 1. 1.14 (1) (b) of the statutes is amended to read:
AB228,3,32 1.14 (1) (b) "State agency" has the meaning given for "agency" under s. 16.70
3(1e)
16.97 (1m).
AB228,2 4Section 2. 13.92 (1) (b) 1. b. of the statutes is amended to read:
AB228,3,65 13.92 (1) (b) 1. b. Any agency, as defined in s. 16.70 (1e) 16.97 (1m), created
6under ch. 13, 14, 15, or 758.
AB228,3
1Section 3. 13.94 (1) (dr) of the statutes is renumbered 13.94 (1) (dr) 3. and
2amended to read:
AB228,4,63 13.94 (1) (dr) 3. Biennially, beginning in 2013, conduct a financial audit of the
4Wisconsin Economic Development Corporation and
a program evaluation audit of
5the economic development programs administered by the Wisconsin Economic
6Development Corporation under ch. 238.
AB228,4,8 74. The legislative audit bureau shall file a copy of each audit report under this
8paragraph with the distributees specified in par. (b).
AB228,4 9Section 4. 13.94 (1) (dr) 1. of the statutes is created to read:
AB228,4,1110 13.94 (1) (dr) 1. Annually, conduct a financial audit of the Wisconsin Economic
11Development Corporation. This subdivision does not apply after June 30, 2019.
AB228,5 12Section 5. 13.94 (1) (dr) 2. of the statutes is created to read:
AB228,4,1413 13.94 (1) (dr) 2. Biennially, conduct a financial audit of the Wisconsin Economic
14Development Corporation. This subdivision applies after June 30, 2019.
AB228,6 15Section 6. 13.94 (1s) (c) 5. of the statutes is amended to read:
AB228,4,1716 13.94 (1s) (c) 5. The Wisconsin Economic Development Corporation for the cost
17of the audit audits required to be performed under sub. (1) (dr).
AB228,7 18Section 7. 16.004 (17) of the statutes is amended to read:
AB228,4,2219 16.004 (17) Business intelligence and data warehousing system. The
20department may implement an enterprise-wide reporting, data warehousing, and
21data analysis system applicable to every agency, as defined in s. 16.70 (1e) 16.97 (1m),
22other than the legislative and judicial branches of state government.
AB228,8 23Section 8. 16.52 (6) (a) of the statutes is amended to read:
AB228,5,824 16.52 (6) (a) Except as authorized in s. 16.74, all purchase orders, contracts,
25or printing orders for any agency, as defined in s. 16.70 (1e) 16.97 (1m), shall, before

1any liability is incurred thereon, be submitted to the secretary for his or her approval
2as to legality of purpose and sufficiency of appropriated and allotted funds therefor.
3In all cases the date of the contract or order governs the fiscal year to which the
4contract or order is chargeable, unless the secretary determines that the purpose of
5the contract or order is to prevent lapsing of appropriations or to otherwise
6circumvent budgetary intent. Upon such approval, the secretary shall immediately
7encumber all contracts or orders, and indicate the fiscal year to which they are
8chargeable.
AB228,9 9Section 9. 16.53 (13) (a) of the statutes is amended to read:
AB228,5,1110 16.53 (13) (a) In this subsection, "agency" has the meaning given in s. 16.70 (1e)
1116.97 (1m).
AB228,10 12Section 10. 16.545 (9) of the statutes is amended to read:
AB228,5,1913 16.545 (9) To initiate contacts with the federal government for the purpose of
14facilitating participation by agencies, as defined in s. 16.70 (1e) 16.97 (1m), in federal
15aid programs, to assist those agencies in applying for such aid, and to facilitate
16influencing the federal government to make policy changes that will be beneficial to
17this state. The department may assess an agency to which it provides services under
18this subsection a fee for the expenses incurred by the department in providing those
19services.
AB228,11 20Section 11. 16.70 (1e) of the statutes is amended to read:
AB228,5,2521 16.70 (1e) "Agency" means an office, department, agency, institution of higher
22education, association, society or other body in state government created or
23authorized to be created by the constitution or any law, which is entitled to expend
24moneys appropriated by law, including the Wisconsin Economic Development
25Corporation, the
legislature, and the courts, but not including an authority.
AB228,12
1Section 12. 16.765 (1) of the statutes is amended to read:
AB228,6,122 16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and
3Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
4Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
5Fox River Remediation Authority, the Wisconsin Economic Development
6Corporation,
and the Bradley Center Sports and Entertainment Corporation shall
7include in all contracts executed by them a provision obligating the contractor not
8to discriminate against any employee or applicant for employment because of age,
9race, religion, color, handicap, sex, physical condition, developmental disability as
10defined in s. 51.01 (5), sexual orientation as defined in s. 111.32 (13m), or national
11origin and, except with respect to sexual orientation, obligating the contractor to take
12affirmative action to ensure equal employment opportunities.
AB228,13 13Section 13. 16.765 (2) of the statutes is amended to read:
AB228,7,614 16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and
15Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
16Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
17Fox River Remediation Authority, the Wisconsin Economic Development
18Corporation,
and the Bradley Center Sports and Entertainment Corporation shall
19include the following provision in every contract executed by them: "In connection
20with the performance of work under this contract, the contractor agrees not to
21discriminate against any employee or applicant for employment because of age, race,
22religion, color, handicap, sex, physical condition, developmental disability as defined
23in s. 51.01 (5), sexual orientation or national origin. This provision shall include, but
24not be limited to, the following: employment, upgrading, demotion or transfer;
25recruitment or recruitment advertising; layoff or termination; rates of pay or other

1forms of compensation; and selection for training, including apprenticeship. Except
2with respect to sexual orientation, the contractor further agrees to take affirmative
3action to ensure equal employment opportunities. The contractor agrees to post in
4conspicuous places, available for employees and applicants for employment, notices
5to be provided by the contracting officer setting forth the provisions of the
6nondiscrimination clause".
AB228,14 7Section 14. 16.765 (5) of the statutes is amended to read:
AB228,7,248 16.765 (5) The head of each contracting agency and the boards of directors of
9the University of Wisconsin Hospitals and Clinics Authority, the Fox River
10Navigational System Authority, the Wisconsin Aerospace Authority, the Health
11Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation
12Authority, the Wisconsin Economic Development Corporation, and the Bradley
13Center Sports and Entertainment Corporation shall be primarily responsible for
14obtaining compliance by any contractor with the nondiscrimination and affirmative
15action provisions prescribed by this section, according to procedures recommended
16by the department. The department shall make recommendations to the contracting
17agencies and the boards of directors of the University of Wisconsin Hospitals and
18Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
19Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
20Fox River Remediation Authority, the Wisconsin Economic Development
21Corporation,
and the Bradley Center Sports and Entertainment Corporation for
22improving and making more effective the nondiscrimination and affirmative action
23provisions of contracts. The department shall promulgate such rules as may be
24necessary for the performance of its functions under this section.
AB228,15 25Section 15. 16.765 (6) of the statutes is amended to read:
AB228,8,9
116.765 (6) The department may receive complaints of alleged violations of the
2nondiscrimination provisions of such contracts. The department shall investigate
3and determine whether a violation of this section has occurred. The department may
4delegate this authority to the contracting agency, the University of Wisconsin
5Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
6Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
7the Lower Fox River Remediation Authority, the Wisconsin Economic Development
8Corporation,
or the Bradley Center Sports and Entertainment Corporation for
9processing in accordance with the department's procedures.
AB228,16 10Section 16. 16.765 (7) (intro.) of the statutes is amended to read:
AB228,8,2111 16.765 (7) (intro.) When a violation of this section has been determined by the
12department, the contracting agency, the University of Wisconsin Hospitals and
13Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
14Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
15Fox River Remediation Authority, the Wisconsin Economic Development
16Corporation,
or the Bradley Center Sports and Entertainment Corporation, the
17contracting agency, the University of Wisconsin Hospitals and Clinics Authority, the
18Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the
19Health Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation
20Authority, the Wisconsin Economic Development Corporation, or the Bradley Center
21Sports and Entertainment Corporation shall:
AB228,17 22Section 17. 16.765 (7) (d) of the statutes is amended to read:
AB228,9,423 16.765 (7) (d) Direct the violating party to take immediate steps to prevent
24further violations of this section and to report its corrective action to the contracting
25agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River

1Navigational System Authority, the Wisconsin Aerospace Authority, the Health
2Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation
3Authority, the Wisconsin Economic Development Corporation, or the Bradley Center
4Sports and Entertainment Corporation.
AB228,18 5Section 18. 16.765 (8) of the statutes is amended to read:
AB228,9,236 16.765 (8) If further violations of this section are committed during the term
7of the contract, the contracting agency, the Fox River Navigational System Authority,
8the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan
9Authority, the Lower Fox River Remediation Authority, the Wisconsin Economic
10Development Corporation,
or the Bradley Center Sports and Entertainment
11Corporation may permit the violating party to complete the contract, after complying
12with this section, but thereafter the contracting agency, the Fox River Navigational
13System Authority, the Wisconsin Aerospace Authority, the Health Insurance
14Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, the
15Wisconsin Economic Development Corporation,
or the Bradley Center Sports and
16Entertainment Corporation shall request the department to place the name of the
17party on the ineligible list for state contracts, or the contracting agency, the Fox River
18Navigational System Authority, the Wisconsin Aerospace Authority, the Health
19Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation
20Authority, the Wisconsin Economic Development Corporation, or the Bradley Center
21Sports and Entertainment Corporation may terminate the contract without liability
22for the uncompleted portion or any materials or services purchased or paid for by the
23contracting party for use in completing the contract.
AB228,19 24Section 19. 16.84 (14) of the statutes is amended to read:
AB228,10,4
116.84 (14) Provide interagency mail delivery service for agencies, as defined
2in s. 16.70 (1e) 16.97 (1m). The department may charge agencies for this service. Any
3moneys collected shall be credited to the appropriation account under s. 20.505 (1)
4(kb).
AB228,20 5Section 20. 16.847 (2) (a) of the statutes is amended to read:
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