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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:
SB720,1 1Section 1 . 13.685 (7) of the statutes is repealed.
SB720,2 2Section 2 . 16.298 (5) of the statutes is amended to read:
SB720,2,43 16.298 (5) Purchasing exemption. A contract is subject to ss. 16.753 and s.
416.765, but is otherwise exempt from subch. IV.
SB720,3 5Section 3 . 16.753 of the statutes is repealed.
SB720,4
1Section 4. 19.42 (12) of the statutes is renumbered 19.42 (12) (intro.) and
2amended to read:
SB720,3,43 19.42 (12) (intro.) “Security" has the meaning given under s. 551.102 (28),
4except that the term does not include a any of the following:
SB720,3,6 5(a) A certificate of deposit or a deposit in a savings and loan association, savings
6bank, credit union or similar association organized under the laws of any state.
SB720,5 7Section 5 . 19.42 (12) (b) of the statutes is created to read:
SB720,3,88 19.42 (12) (b) A defined benefit retirement plan.
SB720,6 9Section 6 . 19.42 (12) (c) of the statutes is created to read:
SB720,3,1010 19.42 (12) (c) An annuity.
SB720,7 11Section 7 . 19.42 (12) (d) of the statutes is created to read:
SB720,3,1212 19.42 (12) (d) A money market fund.
SB720,8 13Section 8 . 19.42 (12) (e) of the statutes is created to read:
SB720,3,1414 19.42 (12) (e) A mutual fund.
SB720,9 15Section 9 . 19.42 (12) (f) of the statutes is created to read:
SB720,3,1616 19.42 (12) (f) An exchange-traded fund.
SB720,10 17Section 10 . 19.43 (1) of the statutes is amended to read:
SB720,3,2218 19.43 (1) Each individual who in January of any year is an official required to
19file, and who is an official required to file for at least 14 days in that year, shall file
20with the commission no later than April 30 of that year a statement of economic
21interests meeting each of the requirements of s. 19.44 (1). The information contained
22on the statement shall be current as of December 31 of the preceding year.
SB720,11 23Section 11 . 19.43 (2m) of the statutes is created to read:
SB720,4,624 19.43 (2m) Each individual who is an official required to file shall file with the
25commission a statement of economic interests meeting each of the requirements of

1s. 19.44 (1) no later than 21 days following the date on which the individual's term
2of office ends or the individual leaves the office. The information contained on the
3statement shall be current as of the date on which the individual's term of office ends
4or the individual leaves the office. An individual who files a statement as provided
5under this subsection is not required to file another statement of economic interests
6until such time as the individual again becomes an official required to file.
SB720,12 7Section 12 . 19.45 (12) of the statutes is repealed.
SB720,13 8Section 13 . 19.45 (14) of the statutes is created to read:
SB720,4,119 19.45 (14) If a state public official receives an item that the official is not
10permitted to accept or retain under this subchapter or subch. III of ch. 13, the official
11shall do one of the following:
SB720,4,1312 (a) Give the item to the official's agency to use or sell, except that the agency
13may not sell the item to any government employee or official.
SB720,4,1514 (b) Give the item to another state agency or to a public institution, such as a
15local school, library, or museum, that can use the item.
SB720,4,1816 (c) Give the item to a charitable organization, as defined in s. 11.0101 (4), not
17including a charitable organization with which the official or his or her immediate
18family is associated.
SB720,4,1919 (d) Return the item to the donor.
SB720,4,2120 (e) If the donor is neither a lobbyist, as defined in s. 13.62 (11), nor a principal,
21as defined in s. 13.62 (12), purchase the item at its full retail value and keep the item.
SB720,14 22Section 14 . 19.48 (11) of the statutes is repealed.
SB720,15 23Section 15 . 19.59 (1b) of the statutes is created to read:
SB720,5,3
119.59 (1b) If a local public official receives an item that the official is not
2permitted to accept or retain under this subchapter or subch. III of ch. 13, the official
3shall do one of the following:
SB720,5,54 (a) Give the item to the official's agency to use or sell, except that the agency
5may not sell the item to any government employee or official.
SB720,5,76 (b) Give the item to another local agency or to a public institution, such as a
7local school, library, or museum, that can use the item.
SB720,5,108 (c) Give the item to a charitable organization, as defined in s. 11.0101 (4), not
9including a charitable organization with which the official or his or her immediate
10family is associated.
SB720,5,1111 (d) Return the item to the donor.
SB720,5,1312 (e) If the donor is neither a lobbyist, as defined in s. 13.62 (11), nor a principal,
13as defined in s. 13.62 (12), purchase the item at its full retail value and keep the item.
SB720,16 14Section 16 . 20.9305 (2) (e) of the statutes is repealed.
SB720,17 15Section 17 . 23.41 (5) of the statutes is amended to read:
SB720,6,416 23.41 (5) Each contract for construction work entered into by the department
17under this section shall be awarded on the basis of bids or competitive sealed
18proposals in accordance with procedures established by the department. Each
19contract for construction work shall be awarded to the lowest responsible bidder or
20the person submitting the most advantageous competitive sealed proposal as
21determined by the department. If the bid of the lowest responsible bidder or the
22proposal of the person submitting the most advantageous competitive sealed
23proposal is determined by the department to be in excess of the estimated reasonable
24value of the work or not in the public interest, the department may reject all bids or
25competitive sealed proposals. Every such contract is exempted from ss. 16.70 to

116.75, 16.755, 16.76, 16.767 to 16.77, 16.78 to 16.82, 16.855, 16.87, and 16.89, but ss.
216.528, 16.753, 16.754, and 16.765 apply to the contract. Every such contract
3involving an expenditure of more than $60,000 is not valid until the contract is
4approved by the governor.
SB720,18 5Section 18 . 25.18 (1) (a) of the statutes is amended to read:
SB720,6,136 25.18 (1) (a) Notwithstanding s. 20.930 and all provisions of subch. IV of ch.
716, except s. 16.753, employ special legal or investment counsel in any matters
8arising out of the scope of its investment authority. Section 16.753 does not apply to
9the employment of legal or investment counsel for the purpose of assisting the board
10with investments.
The employment of special legal counsel shall be with the advice
11and consent of the attorney general whenever such special counsel is to be
12compensated by the board. Any expense of counsel so employed shall be borne by the
13fund for which the services shall be furnished.
SB720,19 14Section 19 . 25.18 (1) (f) of the statutes is amended to read:
SB720,6,2315 25.18 (1) (f) Maintain and repair any building or other structure or premises
16which it owns in fee or in which it owns the beneficial interest and, notwithstanding
17all provisions of subch. IV or V of ch. 16, except s. 16.753, it shall have exclusive
18authority to make such agreements and enter into such contracts as it deems
19necessary for such purpose. Section 16.753 does not apply to agreements and
20contracts entered into by the board for the purpose of assisting the board with
21investments.
All noncapital costs under this paragraph shall be charged to the
22current income accounts of the funds having an interest in the building, structure
23or premises.
SB720,20 24Section 20 . 25.18 (1) (m) of the statutes is amended to read:
SB720,7,7
125.18 (1) (m) Notwithstanding all provisions of subchs. IV and V of ch. 16,
2except s. 16.753, employ professionals, contractors or other agents necessary to
3evaluate or operate any property if a fund managed by the board has an interest in,
4or is considering purchasing or lending money based upon the value of, that property.
5Section 16.753 does not apply to the employment of any person for the purpose of
6assisting the board with investments.
Costs under this paragraph shall be paid by
7the fund and charged to the appropriate account under s. 40.04 (3).
SB720,21 8Section 21 . 84.01 (13) of the statutes is amended to read:
SB720,7,229 84.01 (13) Engineering services. The department may engage such
10engineering, consulting, surveying, or other specialized services as it deems
11advisable. Any engagement of services under this subsection is exempt from ss.
1216.70 to 16.75, 16.755 to 16.82, and 16.85 to 16.89, but ss. 16.528, 16.752, 16.753, and
1316.754 apply to such engagement. Any engagement involving an expenditure of
14$3,000 or more shall be by formal contract approved by the governor. The
15department shall conduct a uniform cost-benefit analysis, as defined in s. 16.70 (3g),
16of each proposed engagement under this subsection that involves an estimated
17expenditure of more than $300,000 in accordance with standards prescribed by rule
18of the department and consider and document the results of the analysis before the
19determination of whether to undertake the proposed engagement. The department
20shall review periodically, and before any renewal, the continued appropriateness of
21contracting pursuant to each engagement under this subsection that involves an
22estimated expenditure of more than $300,000.
SB720,22 23Section 22 . 84.01 (36) (e) of the statutes is amended to read:
SB720,8,924 84.01 (36) (e) For each agreement under par. (b), the contract shall be awarded
25on the basis of competitive proposals in accordance with procedures established by

1the department. Requests for proposals shall be advertised in the manner
2determined by the department. Each contract shall be awarded to the person
3submitting the most advantageous competitive proposal as determined by the
4department. If the proposal of the person submitting the most advantageous
5competitive proposal is determined by the department to be less than the estimated
6reasonable value to the department or not in the public interest, the department may
7reject all proposals. The secretary shall enter into each contract on behalf of the
8state. Every such contract is exempted from ss. 16.70 to 16.75, 16.755 to 16.82, 16.87,
9and 16.89, but ss. 16.528, 16.752, 16.753, and 16.754 apply to the contract.
SB720,23 10Section 23 . 84.06 (2) (a) of the statutes is amended to read:
SB720,9,511 84.06 (2) (a) All such highway improvements shall be executed by contract
12based on bids unless the department finds that another method as provided in sub.
13(3) or (4) would be more feasible and advantageous. Bids shall be advertised for in
14the manner determined by the department. Except as provided in s. 84.075, the
15contract shall be awarded to the lowest competent and responsible bidder as
16determined by the department. If the bid of the lowest competent bidder is
17determined by the department to be in excess of the estimated reasonable value of
18the work or not in the public interest, all bids may be rejected. The department shall,
19so far as reasonable, follow uniform methods of advertising for bids and may
20prescribe and require uniform forms of bids and contracts. Except as provided in par.
21(b), the secretary shall enter into the contract on behalf of the state. Every such
22contract is exempted from ss. 16.70 to 16.75, 16.755 to 16.82, 16.87 and 16.89, but
23ss. 16.528, 16.752, 16.753, and 16.754 apply to the contract. Any such contract
24involving an expenditure of $1,000 or more shall not be valid until approved by the
25governor. The secretary may require the attorney general to examine any contract

1and any bond submitted in connection with the contract and report on its sufficiency
2of form and execution. The bond required by s. 779.14 (1m) is exempt from approval
3by the governor and shall be subject to approval by the secretary. This subsection
4also applies to contracts with private contractors based on bids for maintenance
5under s. 84.07.
SB720,24 6Section 24 . 84.06 (3) of the statutes is amended to read:
SB720,9,237 84.06 (3) Contracts with county or municipality; direct labor; materials. If
8the department finds that it would be more feasible and advantageous to have the
9improvement performed by the county in which the proposed improvement is located
10and without bids, the department may, by arrangement with the county highway
11committee of the county, enter into a contract satisfactory to the department to have
12the work done by the county forces and equipment. In such contract the department
13may authorize the county to purchase, deliver, and store materials and may fix the
14rental rates of small tools and equipment. The contract shall be between the county
15and the state and shall not be based on bids, and may be entered into on behalf of the
16county by the county highway committee and on behalf of the state by the secretary.
17Such contract is exempted from s. 779.14 and from all provisions of chs. 16 and 230,
18except ss. 16.753 and s. 16.754. If the total estimated indebtedness to be incurred
19exceeds $5,000 the contract shall not be valid until approved by the governor. The
20provisions of this subsection relating to agreements between a county and the state
21shall also authorize and apply to such arrangements between a city, town, or a village
22and the state. In such cases, the governing body of the city, town, or village shall
23enter into the agreement on behalf of the municipality.
SB720,25 24Section 25 . 84.06 (4) of the statutes is amended to read:
SB720,10,19
184.06 (4) Special contracts with railroads and utilities. If an improvement
2undertaken by the department will cross or affect the property or facilities of a
3railroad or public utility company, the department may, upon finding that it is
4feasible and advantageous to the state, arrange to perform portions of the
5improvement work affecting such facilities or property or perform work of altering,
6rearranging, or relocating such facilities by contract with the railroad or public
7utility. Such contract shall be between the railroad company or public utility and the
8state and need not be based on bids. The contract may be entered into on behalf of
9the state by the secretary. Every such contract is exempted from s. 779.14 and from
10all provisions of chs. 16 and 230, except ss. 16.528, 16.752, 16.753, and 16.754. No
11such contract in which the total estimated debt to be incurred exceeds $5,000 shall
12be valid until approved by the governor. As used in this subsection, “public utility"
13means the same as in s. 196.01 (5), and includes a telecommunications carrier as
14defined in s. 196.01 (8m), and “railroad" means the same as in s. 195.02. “Property"
15as used in this subsection includes but is not limited to tracks, trestles, signals, grade
16crossings, rights-of-way, stations, pole lines, plants, substations, and other
17facilities. Nothing in this subsection shall be construed to relieve any railroad or
18public utility from any financial obligation, expense, duty, or responsibility
19otherwise provided by law relative to such property.
SB720,26 20Section 26 . 85.015 of the statutes is amended to read:
SB720,10,25 2185.015 Transportation assistance contracts. All contracts entered into
22under this chapter to provide financial assistance in the areas of railroads, urban
23mass transit, specialized transportation, and harbors are subject to ss. 16.528, and
2416.752, and 16.753 but are exempt from ss. 16.70 to 16.75, 16.755 to 16.82, 16.85 to
2516.87, and 16.875 to 16.89.
SB720,27
1Section 27. 102.81 (2) of the statutes is amended to read:
SB720,11,142 102.81 (2) The department may retain an insurance carrier or insurance
3service organization to process, investigate and pay claims under this section and
4may obtain excess or stop-loss reinsurance with an insurance carrier authorized to
5do business in this state in an amount that the secretary determines is necessary for
6the sound operation of the uninsured employers fund. In cases involving disputed
7claims, the department may retain an attorney to represent the interests of the
8uninsured employers fund and to make appearances on behalf of the uninsured
9employers fund in proceedings under ss. 102.16 to 102.29. Section 20.930 and all
10provisions of subch. IV of ch. 16, except s. 16.753, do not apply to an attorney hired
11under this subsection. The charges for the services retained under this subsection
12shall be paid from the appropriation under s. 20.445 (1) (rp). The cost of any
13reinsurance obtained under this subsection shall be paid from the appropriation
14under s. 20.445 (1) (sm).
SB720,28 15Section 28 . 655.27 (2) of the statutes is amended to read:
SB720,12,416 655.27 (2) Fund administration and operation. Management of the fund shall
17be vested with the board of governors. The commissioner shall either provide staff
18services necessary for the operation of the fund or, with the approval of the board of
19governors, contract for all or part of these services. Such a contract is subject to ss.
2016.753 and
s. 16.765, but is otherwise exempt from subch. IV of ch. 16. The
21commissioner shall adopt rules governing the procedures for creating and
22implementing these contracts before entering into the contracts. At least annually,
23the contractor shall report to the commissioner and to the board of governors
24regarding all expenses incurred and subcontracting arrangements. If the board of
25governors approves, the contractor may hire legal counsel as needed to provide staff

1services. The cost of contracting for staff services shall be funded from the
2appropriation under s. 20.145 (2) (u). The fund shall pay to the commissioner
3amounts charged for organizational support services, which shall be credited to the
4appropriation account under s. 20.145 (1) (g) 2.
SB720,12,55 (End)
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