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LRB-5378/1
RAC:kjf
2019 - 2020 LEGISLATURE
January 30, 2020 - Introduced by Representatives Sanfelippo, Born, Felzkowski,
Hutton, Katsma, Knodl, Kuglitsch, Kulp, Murphy, Neylon, Quinn,
Skowronski, Thiesfeldt, Tusler and VanderMeer, cosponsored by Senators
Craig, Kapenga, Nass, Stroebel and Tiffany. Referred to Committee on
Government Accountability and Oversight.
AB835,1,6 1An Act to repeal 15.193, 15.204, 20.435 (8) (b), 20.435 (8) (c), 20.435 (8) (kw),
220.435 (8) (o) and 20.435 (8) (p); to amend 13.90 (1) (intro.), 13.90 (1m) (a),
313.90 (1m) (b), 15.01 (6) and 20.765 (3) (g); and to create 13.94 (1d), 13.97,
420.765 (3) (cm), 20.765 (3) (kr), 20.923 (6) (fm) and 230.08 (2) (fr) of the statutes;
5relating to: creating a legislative office of inspector general and making an
6appropriation.
Analysis by the Legislative Reference Bureau
This bill creates a nonpartisan, legislative service agency known as the
“Legislative Office of Inspector General," consisting of 14 inspectors general and
their staff who are assigned to and housed at the headquarters of certain state
agencies. The state agencies are the departments of administration; agriculture,
trade and consumer protection; children and families; corrections; financial
institutions; health services; justice; natural resources; public instruction; revenue;
safety and professional services; transportation; and workforce development; the
elections commission; the ethics commission; the office of commissioner of insurance;
and the Board of Regents of the University of Wisconsin System. The Wisconsin
Economic Development Corporation and the Wisconsin Housing and Economic
Development Authority are also subject to inspector general services under the bill.
The Joint Committee on Legislative Organization appoints each inspector general
for a six-year term expiring March 1 of the odd-numbered year.

Under the bill, each state agency must provide office space for the inspector
general assigned to the agency and must pay for services provided by the inspectors
general. Inspectors general and their staffs serve in the unclassified service of the
state civil service system. In addition, the Legislative Audit Bureau, upon request,
must provide assistance to inspectors general in the Legislative Office of Inspector
General.
Under the bill, the current offices of inspector general of the departments of
children and families and health services are eliminated.
The bill provides that each inspector general may examine the accounts and
other financial records of the agency to which he or she is assigned, and may review
the performance and program accomplishments of the agency. The bill also provides
that an inspector general must at all times with or without notice have access to any
books, records, or other documents maintained by the agency relating to its
expenditures, revenues, operations, and structure, including specifically any such
books, records, or other documents that are confidential by law.
Under the bill, each inspector general must investigate fraud in state agency
programs or activities and report any finding of fraud to the Department of Justice
and to the appropriate standing committee in each house of the legislature;
investigate waste, abuse, or inefficiency in state agency programs or activities and
report any finding of waste, abuse, or inefficiency to the appropriate standing
committees in each house of the legislature; and submit an annual report of inspector
general activities to the chief clerk of each house of the legislature. In addition, in
investigating waste, abuse, or inefficiency in state agency programs, an inspector
general must endeavor to identify savings for state agencies that would pay at least
the costs incurred by the inspector general in carrying out the investigations.
Under the bill, the speaker of the assembly and the senate majority leader,
jointly, may direct the inspector general assigned to any state agency to examine the
records or programs of the state agency. The chairpersons of the appropriate
standing committees in the assembly and senate, jointly, may also direct the
inspector general assigned to any state agency to examine the records or programs
of the state agency over which the committees have subject matter jurisdiction.
Finally, the bill provides that, at the discretion of the inspector general, an
inspector may review claims by any person that an agency action or order has
adversely affected a substantial interest of the person. A person requesting such a
review must do so before the commencement of a contested case or other similar state
agency review process. Under the bill, if an inspector general elects to review a claim,
the inspector must determine whether the agency action or order was inconsistent
with any law or administrative rule. An inspector must report all such
determinations to the appropriate standing committees in each house, the Joint
Legislative Audit Committee, and the Joint Committee for Review of Administrative
Rules.

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:
AB835,1 1Section 1. 13.90 (1) (intro.) of the statutes is amended to read:
AB835,3,52 13.90 (1) (intro.) The joint committee on legislative organization shall be the
3policy-making board for the legislative reference bureau, the legislative fiscal
4bureau, the legislative audit bureau, the legislative office of inspector general, and
5the legislative technology services bureau. The committee shall:
AB835,2 6Section 2. 13.90 (1m) (a) of the statutes is amended to read:
AB835,3,107 13.90 (1m) (a) In this subsection, “legislative service agency" means the
8legislative council staff, the legislative audit bureau, the legislative office of
9inspector general,
the legislative fiscal bureau, the legislative reference bureau, and
10the legislative technology services bureau.
AB835,3 11Section 3. 13.90 (1m) (b) of the statutes is amended to read:
AB835,3,2112 13.90 (1m) (b) The joint committee on legislative organization shall select the
13head of each legislative service agency, except that the committee shall designate a
14lead inspector general for the legislative office of inspector general
. The appointment
15of each legislative service agency head shall be made without regard to political
16affiliation in order to safeguard the nonpartisan character of each legislative service
17agency. In the case of the state auditor, the joint legislative audit committee shall
18make recommendations for the approval of the joint committee on legislative
19organization. The committee shall designate an employee of each legislative service
20agency to exercise the powers and authority of each legislative service agency head
21in case of absence or disability.
AB835,4
1Section 4. 13.94 (1d) of the statutes is created to read:
AB835,4,42 13.94 (1d) Provide assistance to legislative office of inspector general.
3Upon request, the legislative audit bureau shall provide assistance to inspectors
4general in the legislative office of inspector general.
AB835,5 5Section 5 . 13.97 of the statutes is created to read:
AB835,4,13 613.97 Legislative office of inspector general. (1) In this section, “state
7agency" means the department of administration; agriculture, trade and consumer
8protection; children and families; corrections; financial institutions; health services;
9justice; natural resources; public instruction; revenue; safety and professional
10services; transportation; or workforce development; the elections commission; the
11ethics commission; the office of commissioner of insurance; the Wisconsin Economic
12Development Corporation; the Wisconsin Housing and Economic Development
13Authority; or the Board of Regents of the University of Wisconsin System.
AB835,4,18 14(2) (a) There is created a legislative service agency known as the “Legislative
15Office of Inspector General," consisting of 14 inspectors general and their staff who
16are assigned to and housed at the headquarters of state agencies. The joint
17committee on legislative organization shall appoint each inspector general for a
186-year term expiring March 1 of the odd-numbered year.
AB835,4,2219 (b) The joint committee on legislative organization shall designate a lead
20inspector general to serve as the chief administrative officer of the legislative office
21of inspector general, who shall appoint all staff and oversee the operations and
22expenditures of the legislative office of inspector general.
AB835,5,223 (c) Each state agency shall provide office space at the agency headquarters for
24the inspector general assigned to the agency and for his or her staff. Each state

1agency shall pay for all services provided by the inspectors general and shall credit
2the payments to the appropriation account under s. 20.765 (3) (kr).
AB835,5,53 (d) The legislative office of inspector general shall be strictly nonpartisan and
4shall at all times observe the confidential nature of any investigation currently being
5performed.
AB835,5,86 (e) The inspector general assigned to the Wisconsin Economic Development
7Corporation shall also be assigned to the Wisconsin Housing and Economic
8Development Authority.
AB835,5,119 (f) The inspector general assigned to the department of safety and professional
10services shall also be assigned to the department of agriculture, trade and consumer
11protection.
AB835,5,1312 (g) The inspector general assigned to the elections commission shall also be
13assigned to the ethics commission.
AB835,5,1514 (h) The inspector general assigned to the department of workforce development
15shall also be assigned to the department of children and families.
AB835,5,1716 (i) The inspector general assigned to the department of financial institutions
17shall also be assigned to the office of the commissioner of insurance.
AB835,6,3 18(3) (a) The inspector general assigned to each state agency may examine the
19accounts and other financial records of the agency to which he or she is assigned to
20assure that all financial transactions have been made in a legal and proper manner.
21The inspector general may review the performance and program accomplishments
22of the agency during the fiscal period for which the examination is being conducted
23to determine whether the agency carried out the policy of the legislature and the
24governor during the period for which the appropriations were made. An inspector
25general shall at all times with or without notice have access to any books, records,

1or other documents maintained by the agency relating to its expenditures, revenues,
2operations, and structure, including specifically any such books, records, or other
3documents that are confidential by law.
AB835,6,54 (b) The inspector general assigned to each state agency shall do all of the
5following:
AB835,6,146 1. At the discretion of the inspector general, review claims by any person that
7an agency action or order has adversely affected a substantial interest of the person.
8A person requesting such a review must do so before the commencement of a
9contested case under s. 227.44 or other similar state agency review process. If an
10inspector general elects to review a claim, the inspector shall determine whether the
11agency action or order was inconsistent with any law or administrative rule. An
12inspector shall report all such determinations to the appropriate standing
13committees under s. 13.172 (3), the joint legislative audit committee, and the joint
14committee for review of administrative rules.
AB835,6,1715 2. Investigate fraud in state agency programs or activities and report any
16finding of fraud to the department of justice and to the appropriate standing
17committees under s. 13.172 (3).
AB835,6,2318 3. Investigate waste, abuse, or inefficiency in state agency programs or
19activities and report any finding of waste, abuse, or inefficiency to the appropriate
20standing committees under s. 13.172 (3). In investigating waste, abuse, or
21inefficiency in state agency programs, an inspector general shall endeavor to identify
22savings for state agencies that would pay at least the costs incurred by the inspector
23general in carrying out the investigations.
AB835,6,2524 4. Submit an annual report of inspector general activities to the chief clerk of
25each house of the legislature, for distribution to the legislature under s. 13.172 (2).
AB835,7,4
1(c) Before a state agency may expend on state agency programs and activities
2any moneys saved as a result of inspector general investigations under par. (b) 2. and
33., the state agency must first use the moneys to pay all costs incurred by the
4inspector general in carrying out the investigations.
AB835,7,95 (d) The speaker of the assembly and the senate majority leader, jointly, may
6direct the inspector general assigned to any state agency to examine the records or
7programs of the state agency. An inspector general who conducts an investigation
8under this paragraph shall submit the investigation report to the chief clerk of each
9house of the legislature, for distribution to the legislature under s. 13.172 (2).
AB835,7,1510 (e) The chairpersons of the appropriate standing committees in the assembly
11and senate, jointly, may direct the inspector general assigned to any state agency to
12examine the records or programs of the state agency over which the committees have
13subject matter jurisdiction. An inspector general who conducts an investigation
14under this paragraph shall submit the investigation report to the chief clerk of each
15house of the legislature, for distribution to the legislature under s. 13.172 (2).
AB835,6 16Section 6 . 15.01 (6) of the statutes is amended to read:
AB835,8,317 15.01 (6) “Division," “bureau," “section," and “unit" means the subunits of a
18department or an independent agency, whether specifically created by law or created
19by the head of the department or the independent agency for the more economic and
20efficient administration and operation of the programs assigned to the department
21or independent agency. The office of credit unions in the department of financial
22institutions, the office of the inspector general in the department of children and
23families, the office of the inspector general in the department of health services,
and
24the office of children's mental health in the department of health services have the
25meaning of “division" under this subsection. The office of the long-term care

1ombudsman under the board on aging and long-term care and the office of
2educational accountability in the department of public instruction have the meaning
3of “bureau" under this subsection.
AB835,7 4Section 7 . 15.193 of the statutes is repealed.
AB835,8 5Section 8 . 15.204 of the statutes is repealed.
AB835,9 6Section 9 . 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
7the following amounts for the purposes indicated: - See PDF for table PDF
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