AB756: Bill Text

LRB-5167/1

JK:ahe

2021 - 2022 LEGISLATURE

2021 Assembly BILL 756

December 7, 2021 - Introduced by Representatives Wichgers, Cabral-Guevara, Murphy and Spiros, cosponsored by Senator Bernier. Referred to Committee on State Affairs.

AB756,1,7 An Act to repeal 13.685 (7), 16.753, 19.45 (12), 19.48 (11) and 20.9305 (2) (e); to renumber and amend 19.42 (12); to amend 16.298 (5), 19.43 (1), 23.41 (5), 25.18 (1) (a), 25.18 (1) (f), 25.18 (1) (m), 84.01 (13), 84.01 (36) (e), 84.06 (2) (a), 84.06 (3), 84.06 (4), 85.015, 102.81 (2) and 655.27 (2); and to create 19.42 (12) (b), 19.42 (12) (c), 19.42 (12) (d), 19.42 (12) (e), 19.42 (12) (f), 19.43 (2m), 19.45 (14) and 19.59 (1b) of the statutes; relating to: changes to the administration of the code of ethics, as recommended by the Ethics Commission.

Analysis by the Legislative Reference Bureau

This bill bill makes various changes to the administration of the code of ethics, as recommended by the Ethics Commission.

The bill eliminates a requirement that the Ethics Commission compile and post on its Internet site for access by the public information received by the commission from state agencies and related to certain pending contracts and orders with the agencies. The bill also eliminates a requirement that the commission regularly, during the course of a legislative session, give reports to the legislature that provide information about licensed lobbyists, principals, and their lobbying activities.

The bill changes the definition of “security” as that term is used in connection with the types of financial information an individual required to file with the Ethics Commission must disclose on his or her statement of economic interests. Current law requires state public office holders and certain state employees to annually file a statement of economic interests and to identify the employers, investments, real estate, commercial clients, and creditors of the individual and his or her family members.

Current law requires a state public official to file a statement of economic interests with the commission no later than April 30 of any year in which the individual held office on January 1 of that year. The bill modifies current law so that an official must file the statement only if he or she held office on January 1 and for at least 14 days. The bill also requires an official to file a statement no later than 21 days following the date on which the official leaves office. The individual is then not required to file another statement of economic interests until such time as the individual again becomes a state public official.

Under the bill, if a state or local public official receives an item that the code of ethics does not permit the official to accept or retain, the official must do one of the following:

1. Give the item to the official's agency to use or sell, except that the agency may not sell the item to any government employee or official.

2. Give the item to another state or local agency or to a public institution, such as a local school, library, or museum, that can use the item.

3. Give the item to a charitable organization, not including a charitable organization to which the official or his or her immediate family is associated.

4. Return the item to the donor.

5. If the donor is neither a lobbyist nor a principal (a person who employs a lobbyist), purchase the item at its full retail value and keep the item.

This provision codifies the guideline issued by the Ethics Commission for the disposition of gifts received by state and local public officials.

Finally, the bill repeals a provision that prohibits an officer or employee of a state agency from requesting appropriations for that agency in excess of the appropriations already requested. The U.S. District Court in the Eastern District of Wisconsin, in Barnett v. State Ethics Board, 817 F. Supp. 67 (1993), found this to be an unconstitutional infringement on free speech.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB756,1 Section 1 . 13.685 (7) of the statutes is repealed.

AB756,2 Section 2 . 16.298 (5) of the statutes is amended to read:

AB756,2,4 16.298 (5) Purchasing exemption. A contract is subject to ss. 16.753 and s. 16.765, but is otherwise exempt from subch. IV.

AB756,3 Section 3 . 16.753 of the statutes is repealed.

AB756,4 Section 4. 19.42 (12) of the statutes is renumbered 19.42 (12) (intro.) and amended to read:

AB756,3,4 19.42 (12) (intro.) “Security" has the meaning given under s. 551.102 (28), except that the term does not include a any of the following:

AB756,3,6 (a) A certificate of deposit or a deposit in a savings and loan association, savings bank, credit union or similar association organized under the laws of any state.

AB756,5 Section 5 . 19.42 (12) (b) of the statutes is created to read:

AB756,3,8 19.42 (12) (b) A defined benefit retirement plan.

AB756,6 Section 6 . 19.42 (12) (c) of the statutes is created to read:

AB756,3,10 19.42 (12) (c) An annuity.

AB756,7 Section 7 . 19.42 (12) (d) of the statutes is created to read:

AB756,3,12 19.42 (12) (d) A money market fund.

AB756,8 Section 8 . 19.42 (12) (e) of the statutes is created to read:

AB756,3,14 19.42 (12) (e) A mutual fund.

AB756,9 Section 9 . 19.42 (12) (f) of the statutes is created to read:

AB756,3,16 19.42 (12) (f) An exchange-traded fund.

AB756,10 Section 10 . 19.43 (1) of the statutes is amended to read:

AB756,3,22 19.43 (1) Each individual who in January of any year is an official required to file, and who is an official required to file for at least 14 days in that year, shall file with the commission no later than April 30 of that year a statement of economic interests meeting each of the requirements of s. 19.44 (1). The information contained on the statement shall be current as of December 31 of the preceding year.

AB756,11 Section 11 . 19.43 (2m) of the statutes is created to read:

AB756,4,6 19.43 (2m) Each individual who is an official required to file shall file with the commission a statement of economic interests meeting each of the requirements of s. 19.44 (1) no later than 21 days following the date on which the individual's term of office ends or the individual leaves the office. The information contained on the statement shall be current as of the date on which the individual's term of office ends or the individual leaves the office. An individual who files a statement as provided under this subsection is not required to file another statement of economic interests until such time as the individual again becomes an official required to file.

AB756,12 Section 12 . 19.45 (12) of the statutes is repealed.

AB756,13 Section 13 . 19.45 (14) of the statutes is created to read:

AB756,4,11 19.45 (14) If a state public official receives an item that the official is not permitted to accept or retain under this subchapter or subch. III of ch. 13, the official shall do one of the following:

AB756,4,13 (a) Give the item to the official's agency to use or sell, except that the agency may not sell the item to any government employee or official.

AB756,4,15 (b) Give the item to another state agency or to a public institution, such as a local school, library, or museum, that can use the item.

AB756,4,18 (c) Give the item to a charitable organization, as defined in s. 11.0101 (4), not including a charitable organization with which the official or his or her immediate family is associated.

AB756,4,19 (d) Return the item to the donor.

AB756,4,21 (e) If the donor is neither a lobbyist, as defined in s. 13.62 (11), nor a principal, as defined in s. 13.62 (12), purchase the item at its full retail value and keep the item.

AB756,14 Section 14 . 19.48 (11) of the statutes is repealed.

AB756,15 Section 15 . 19.59 (1b) of the statutes is created to read:

AB756,5,3 19.59 (1b) If a local public official receives an item that the official is not permitted to accept or retain under this subchapter or subch. III of ch. 13, the official shall do one of the following:

AB756,5,5 (a) Give the item to the official's agency to use or sell, except that the agency may not sell the item to any government employee or official.

AB756,5,7 (b) Give the item to another local agency or to a public institution, such as a local school, library, or museum, that can use the item.

AB756,5,10 (c) Give the item to a charitable organization, as defined in s. 11.0101 (4), not including a charitable organization with which the official or his or her immediate family is associated.

AB756,5,11 (d) Return the item to the donor.

AB756,5,13 (e) If the donor is neither a lobbyist, as defined in s. 13.62 (11), nor a principal, as defined in s. 13.62 (12), purchase the item at its full retail value and keep the item.

AB756,16 Section 16 . 20.9305 (2) (e) of the statutes is repealed.

AB756,17 Section 17 . 23.41 (5) of the statutes is amended to read:

AB756,6,4 23.41 (5) Each contract for construction work entered into by the department under this section shall be awarded on the basis of bids or competitive sealed proposals in accordance with procedures established by the department. Each contract for construction work shall be awarded to the lowest responsible bidder or the person submitting the most advantageous competitive sealed proposal as determined by the department. If the bid of the lowest responsible bidder or the proposal of the person submitting the most advantageous competitive sealed proposal is determined by the department to be in excess of the estimated reasonable value of the work or not in the public interest, the department may reject all bids or competitive sealed proposals. Every such contract is exempted from ss. 16.70 to 16.75, 16.755, 16.76, 16.767 to 16.77, 16.78 to 16.82, 16.855, 16.87, and 16.89, but ss. 16.528, 16.753, 16.754, and 16.765 apply to the contract. Every such contract involving an expenditure of more than $60,000 is not valid until the contract is approved by the governor.

AB756,18 Section 18 . 25.18 (1) (a) of the statutes is amended to read:

AB756,6,13 25.18 (1) (a) Notwithstanding s. 20.930 and all provisions of subch. IV of ch. 16, except s. 16.753, employ special legal or investment counsel in any matters arising out of the scope of its investment authority. Section 16.753 does not apply to the employment of legal or investment counsel for the purpose of assisting the board with investments. The employment of special legal counsel shall be with the advice and consent of the attorney general whenever such special counsel is to be compensated by the board. Any expense of counsel so employed shall be borne by the fund for which the services shall be furnished.

AB756,19 Section 19 . 25.18 (1) (f) of the statutes is amended to read:

AB756,6,23 25.18 (1) (f) Maintain and repair any building or other structure or premises which it owns in fee or in which it owns the beneficial interest and, notwithstanding all provisions of subch. IV or V of ch. 16, except s. 16.753, it shall have exclusive authority to make such agreements and enter into such contracts as it deems necessary for such purpose. Section 16.753 does not apply to agreements and contracts entered into by the board for the purpose of assisting the board with investments. All noncapital costs under this paragraph shall be charged to the current income accounts of the funds having an interest in the building, structure or premises.

AB756,20 Section 20 . 25.18 (1) (m) of the statutes is amended to read:

AB756,7,7 25.18 (1) (m) Notwithstanding all provisions of subchs. IV and V of ch. 16, except s. 16.753, employ professionals, contractors or other agents necessary to evaluate or operate any property if a fund managed by the board has an interest in, or is considering purchasing or lending money based upon the value of, that property. Section 16.753 does not apply to the employment of any person for the purpose of assisting the board with investments. Costs under this paragraph shall be paid by the fund and charged to the appropriate account under s. 40.04 (3).

AB756,21 Section 21 . 84.01 (13) of the statutes is amended to read:

AB756,7,22 84.01 (13) Engineering services. The department may engage such engineering, consulting, surveying, or other specialized services as it deems advisable. Any engagement of services under this subsection is exempt from ss. 16.70 to 16.75, 16.755 to 16.82, and 16.85 to 16.89, but ss. 16.528, 16.752, 16.753, and 16.754 apply to such engagement. Any engagement involving an expenditure of $3,000 or more shall be by formal contract approved by the governor. The department shall conduct a uniform cost-benefit analysis, as defined in s. 16.70 (3g), of each proposed engagement under this subsection that involves an estimated expenditure of more than $300,000 in accordance with standards prescribed by rule of the department and consider and document the results of the analysis before the determination of whether to undertake the proposed engagement. The department shall review periodically, and before any renewal, the continued appropriateness of contracting pursuant to each engagement under this subsection that involves an estimated expenditure of more than $300,000.

AB756,22 Section 22 . 84.01 (36) (e) of the statutes is amended to read:

AB756,8,9 84.01 (36) (e) For each agreement under par. (b), the contract shall be awarded on the basis of competitive proposals in accordance with procedures established by the department. Requests for proposals shall be advertised in the manner determined by the department. Each contract shall be awarded to the person submitting the most advantageous competitive proposal as determined by the department. If the proposal of the person submitting the most advantageous competitive proposal is determined by the department to be less than the estimated reasonable value to the department or not in the public interest, the department may reject all proposals. The secretary shall enter into each contract on behalf of the state. Every such contract is exempted from ss. 16.70 to 16.75, 16.755 to 16.82, 16.87, and 16.89, but ss. 16.528, 16.752, 16.753, and 16.754 apply to the contract.

AB756,23 Section 23 . 84.06 (2) (a) of the statutes is amended to read:

AB756,9,5 84.06 (2) (a) All such highway improvements shall be executed by contract based on bids unless the department finds that another method as provided in sub. (3) or (4) would be more feasible and advantageous. Bids shall be advertised for in the manner determined by the department. Except as provided in s. 84.075, the contract shall be awarded to the lowest competent and responsible bidder as determined by the department. If the bid of the lowest competent bidder is determined by the department to be in excess of the estimated reasonable value of the work or not in the public interest, all bids may be rejected. The department shall, so far as reasonable, follow uniform methods of advertising for bids and may prescribe and require uniform forms of bids and contracts. Except as provided in par. (b), the secretary shall enter into the contract on behalf of the state. Every such contract is exempted from ss. 16.70 to 16.75, 16.755 to 16.82, 16.87 and 16.89, but ss. 16.528, 16.752, 16.753, and 16.754 apply to the contract. Any such contract involving an expenditure of $1,000 or more shall not be valid until approved by the governor. The secretary may require the attorney general to examine any contract and any bond submitted in connection with the contract and report on its sufficiency of form and execution. The bond required by s. 779.14 (1m) is exempt from approval by the governor and shall be subject to approval by the secretary. This subsection also applies to contracts with private contractors based on bids for maintenance under s. 84.07.

AB756,24 Section 24 . 84.06 (3) of the statutes is amended to read:

AB756,9,23 84.06 (3) Contracts with county or municipality; direct labor; materials. If the department finds that it would be more feasible and advantageous to have the improvement performed by the county in which the proposed improvement is located and without bids, the department may, by arrangement with the county highway committee of the county, enter into a contract satisfactory to the department to have the work done by the county forces and equipment. In such contract the department may authorize the county to purchase, deliver, and store materials and may fix the rental rates of small tools and equipment. The contract shall be between the county and the state and shall not be based on bids, and may be entered into on behalf of the county by the county highway committee and on behalf of the state by the secretary. Such contract is exempted from s. 779.14 and from all provisions of chs. 16 and 230, except ss. 16.753 and s. 16.754. If the total estimated indebtedness to be incurred exceeds $5,000 the contract shall not be valid until approved by the governor. The provisions of this subsection relating to agreements between a county and the state shall also authorize and apply to such arrangements between a city, town, or a village and the state. In such cases, the governing body of the city, town, or village shall enter into the agreement on behalf of the municipality.