AB56,130,3 16.84 (5) (a) Have responsibility, subject to approval of the governor, for all functions relating to the leasing, acquisition, allocation, and utilization of all real property by the state, except where such responsibility is otherwise provided by the statutes. In exercising this responsibility, the department may not enter into, extend, or renew a lease involving an annual rent of more than $500,000 unless the secretary signs the lease, a copy of the proposed lease is submitted electronically to the chief clerk of each house for distribution, and the department notifies the joint committee on finance of the proposed lease and provides the committee with the any required information under par. (b) as well as a summary report of that information, including the terms of the lease and the lease rate per square foot of the proposed property and the comparable options. If the cochairpersons of the joint committee on finance do not notify the secretary that the committee has scheduled a meeting for the purpose of reviewing the proposed lease within 14 working days after the date of the notification, the lease may be entered into, extended, or renewed. If, within 14 working days after the date of the notification, the cochairpersons of the committee notify the secretary that the committee has scheduled a meeting for the purpose of reviewing the proposed lease, the lease may be entered into, extended, or renewed only upon approval of the committee.

AB56,65 Section 65. 16.84 (5) (b) (intro.) of the statutes is amended to read:

AB56,130,10 16.84 (5) (b) (intro.) Before entering into, extending, or renewing a new lease, except for a lease with an annual cost that is less than $25,000 or except for a lease for a tower, a department of workforce development job center, a hangar, an easement, student housing, state public defender office space, a department of military affairs recruiting office, or a facility with a location required by law or designated for necessity or practical purposes, do all of the following:

AB56,66 Section 66. 16.84 (5) (b) 2. of the statutes is amended to read:

AB56,130,17 16.84 (5) (b) 2. Evaluate comparable lease options within a 10-mile radius of the property proposed in the lease, or if there are not sufficient comparable properties within a 10-mile radius to perform a meaningful comparison, a wider radius as needed, to ensure the lease rate per square foot does not exceed the lease rate per square foot on comparable properties or the market rate by more than 5 percent.

AB56,67 Section 67. 16.848 (2) (g) of the statutes is amended to read:

AB56,130,20 16.848 (2) (g) Subsection (1) does not apply to property that is subject to sale by the department of veterans affairs under s. 45.32 (7), 2017 stats.

AB56,68 Section 68. 16.848 (4) (a) of the statutes is renumbered 16.848 (4) (ag) and amended to read:

AB56,132,7 16.848 (4) (ag) Except as provided in s. 13.48 (14) (e), if there is any outstanding public debt used to finance the acquisition, construction, or improvement of any property that is sold or leased under sub. (1), the department shall deposit a sufficient amount of the net proceeds from the sale or lease of the property in the bond security and redemption fund under s. 18.09 to repay the principal and pay the interest on the debt, and any premium due upon refunding redeeming any of the debt, except that the department may deposit some or all of the net proceeds, not to exceed the amount the department would have deposited in the bond security and redemption fund, in the capital improvement fund for use as a substitute source of funding under s. 20.924 (1) (em) for a project enumerated under the authorized state building program that is within the same statutory bond purpose as the property sold or leased under sub. (1). If there is any outstanding public debt used to finance the acquisition, construction, or improvement of any property that is sold or leased under sub. (1), the department shall then provide a sufficient amount of the net proceeds from the sale or lease of the property for the costs of maintaining federal tax law compliance applicable to the debt. If the property was acquired, constructed, or improved with federal financial assistance, the department shall pay to the federal government any of the net proceeds required by federal law. If the property was acquired by gift or grant or acquired with gift or grant funds, the department shall adhere to any restriction governing use of the proceeds. Except as required under ss. 13.48 (14) (e), 20.395 (9) (qd), and 51.06 (6), if there is no such debt outstanding, there are no moneys payable to the federal government, and there is no restriction governing use of the proceeds, and if the net proceeds exceed the amount required to be deposited, paid, or used for another purpose under this subsection, the department shall use the net proceeds or remaining net proceeds to pay principal and interest costs on outstanding public debt issued to finance the acquisition, construction, or improvement of property, except that the department may deposit some or all of the net proceeds in the capital improvement fund for use as a substitute source of funding under s. 20.924 (1) (em) for a project enumerated under the authorized state building program that is within the same statutory bond purpose as the property sold or leased under sub. (1). If any net proceeds remain thereafter, the department shall use the proceeds to pay principal and interest costs on other outstanding public debt, except that the department may deposit some or all of the net proceeds in the capital improvement fund for use as a substitute source of funding under s. 20.924 (1) (em) for any statutory bond purpose.

AB56,69 Section 69. 16.848 (4) (ab) of the statutes is created to read:

AB56,132,10 16.848 (4) (ab) In this subsection, “statutory bond purpose” has the meaning given in s. 13.48 (14) (a) 2.

AB56,70 Section 70. 16.848 (4) (am) of the statutes is created to read:

AB56,132,17 16.848 (4) (am) If, under par. (ag), the department deposits an amount in the capital improvement fund for use as a substitute source of funding under s. 20.924 (1) (em), the amount of public debt that may be contracted under the statutory bond purpose for which the amount deposited under par. (ag) is used as a substitute source of funding shall be reduced by the amount used as a substitute source of funding for that statutory bond purpose.

AB56,71 Section 71. 16.848 (4) (b) (intro.) of the statutes is amended to read:

AB56,133,4 16.848 (4) (b) (intro.) For the purpose of paying principal and interest costs on other outstanding public debt under par. (a) (ag), the secretary may cause outstanding bonds to be called for redemption on or following their optional redemption date, establish one or more escrow accounts to redeem bonds at their optional redemption date, or purchase bonds in the open market. For the purpose of using an amount deposited under par. (ag) as a substitute source of funding under s. 20.924 (1) (em), the department shall determine which projects to fund and shall authorize expenditures for those projects. To the extent practical, the secretary shall consider all of the following in determining which public debt to redeem, whether to use any net proceeds as a substitute source of funding under s. 20.924 (1) (em), and which projects to fund:

AB56,72 Section 72. 16.848 (4) (b) 4. of the statutes is amended to read:

AB56,133,8 16.848 (4) (b) 4. The fiscal benefit of redeeming outstanding debt with higher interest costs and the costs of establishing an escrow needed to redeem the outstanding debt.

AB56,73 Section 73. 16.848 (4) (b) 5. of the statutes is amended to read:

AB56,133,12 16.848 (4) (b) 5. The costs of maintaining federal tax law compliance in the selection of general obligation debt to be redeemed or the project to be financed under s. 20.924 (1) (em).

AB56,74 Section 74. 16.848 (4) (c) of the statutes is amended to read:

AB56,134,14 16.848 (4) (c) If there are any outstanding revenue obligations, issued pursuant to subch. II of ch. 18, used to finance the acquisition, construction, or improvement of any property that is sold or leased under sub. (1), the department shall adhere to any restrictions in the authorizing resolution of the revenue obligations governing the use of the proceeds. To the extent the authorizing resolution does not restrict such use, the department shall deposit a sufficient amount of the net proceeds from the sale or lease of the property in the respective redemption fund provided under s. 18.561 (5) or 18.562 (3) to repay the principal and pay the interest on the revenue obligations, and any premium due upon refunding redeeming any of the revenue obligations, or shall deposit an amount in the appropriate fund under s. 18.57 or apply the amount for a purpose for which similar revenue obligations may be issued under s. 18.53 (3) or (4). If there are any outstanding revenue obligations, issued pursuant to subch. II of ch. 18, used to finance the acquisition, construction, or improvement of any property that is sold or leased under sub. (1), the department shall then provide a sufficient amount of the net proceeds from the sale or lease of the property for the costs of maintaining federal tax law compliance applicable to the revenue obligations. For the purpose of paying principal and interest costs on other outstanding revenue obligations, the secretary may cause outstanding revenue obligations to be called for redemption on or following their optional redemption date, establish one or more escrow accounts to redeem obligations at their optional redemption date, or purchase bonds on the open market. Except as required under ss. 13.48 (14) (e), 20.395 (9) (qd), and 51.06 (6), if the net proceeds exceed the amount required to be deposited, paid, or used for another purpose under this paragraph, the department shall use the net proceeds or remaining net proceeds to pay principal and interest costs on other similar revenue obligations or for a purpose for which similar revenue obligations may be issued under s. 18.53 (3) or (4).

AB56,75 Section 75. 16.848 (4) (d) of the statutes is created to read:

AB56,134,19 16.848 (4) (d) If under par. (c) the department deposits net proceeds into an appropriate fund provided in s. 18.57 or applies net proceeds for a purpose for which revenue obligations may be issued, the amount of revenue obligations authorized under s. 18.54 (2) shall be reduced by the amount deposited or applied.

AB56,76 Section 76. 16.855 (1p) of the statutes is repealed.

AB56,77 Section 77. 16.954 of the statutes is created to read:

AB56,134,23 16.954 Office of sustainability and clean energy. (1) Definitions. In this section:

AB56,134,24 (a) “Office” means the office of sustainability and clean energy.

AB56,134,25 (b) “Public utility” has the meaning given in s. 196.01 (5).

AB56,135,2 (2) Initiatives. The office shall work on initiatives that have the following goals: