LRB-2441/1
MPG&CMH:sac:jm
2013 - 2014 LEGISLATURE
June 3, 2013 - Introduced by Senators Cowles, Vinehout, Harsdorf, Petrowski,
Schultz, T. Cullen, Carpenter, Kedzie and Miller, cosponsored by
Representatives Kerkman, Tittl, A. Ott, Petryk, Ripp, Mursau, Bernier and
Weininger. Referred to Joint Legislative Audit Committee.
SB205,1,11 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:
SB205,1 1Section 1. 1.14 (1) (b) of the statutes is amended to read:
SB205,3,32 1.14 (1) (b) "State agency" has the meaning given for "agency" under s. 16.70
3(1e)
16.97 (1m).
SB205,2 4Section 2. 13.92 (1) (b) 1. b. of the statutes is amended to read:
SB205,3,65 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.
SB205,3
1Section 3. 13.94 (1) (dr) of the statutes is renumbered 13.94 (1) (dr) 3. and
2amended to read:
SB205,4,63 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.
SB205,4,8 74. The legislative audit bureau shall file a copy of each audit report under this
8paragraph with the distributees specified in par. (b).
SB205,4 9Section 4. 13.94 (1) (dr) 1. of the statutes is created to read:
SB205,4,1110 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.
SB205,5 12Section 5. 13.94 (1) (dr) 2. of the statutes is created to read:
SB205,4,1413 13.94 (1) (dr) 2. Biennially, conduct a financial audit of the Wisconsin Economic
14Development Corporation. This subdivision applies after June 30, 2019.
SB205,6 15Section 6. 13.94 (1s) (c) 5. of the statutes is amended to read:
SB205,4,1716 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).
SB205,7 18Section 7. 16.004 (17) of the statutes is amended to read:
SB205,4,2219 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.
SB205,8 23Section 8. 16.52 (6) (a) of the statutes is amended to read:
SB205,5,824 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.
SB205,9 9Section 9. 16.53 (13) (a) of the statutes is amended to read:
SB205,5,1110 16.53 (13) (a) In this subsection, "agency" has the meaning given in s. 16.70 (1e)
1116.97 (1m).
SB205,10 12Section 10. 16.545 (9) of the statutes is amended to read:
SB205,5,1913 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.
SB205,11 20Section 11. 16.70 (1e) of the statutes is amended to read:
SB205,5,2521 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.
SB205,12
1Section 12. 16.765 (1) of the statutes is amended to read:
SB205,6,122 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.
SB205,13 13Section 13. 16.765 (2) of the statutes is amended to read:
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