1995 - 1996 LEGISLATURE
August 2, 1995 - Introduced by Senators Weeden, Ellis and Rude, by request of
Governor Tommy G. Thompson. Referred to Committee on State Government
Operations and Corrections.
SB288,1,9 1An Act to renumber and amend 20.907 (1); to amend 16.50 (1) (a), 16.517,
220.001 (4), 20.001 (5), 20.855 (6) (g), 20.865 (8) (title) and 20.907 (2); and to
3create
20.865 (8) (a), 20.865 (8) (q), 20.907 (1) (b) and 227.01 (13) (zo) of the
4statutes; relating to: adjustment of full-time equivalent positions and
5appropriation amounts resulting from actions of the joint committee on finance,
6acceptance and expenditure of the proceeds of certain gifts, grants and bequests
7made to state agencies, requirements for designation of amounts received by a
8state agency as a refund of expenditures, providing an exemption from
9rule-making procedures and making appropriations.
Analysis by the Legislative Reference Bureau
This bill makes changes in laws relating to adjustment of full-time equivalent
state positions and appropriation amounts, acceptance and expenditure of certain
gifts, grants and bequests by the state and requirements for designation of amounts
received by a state agency as a refund of expenditures.
Adjustment of positions and appropriation amounts
Currently, if the governor or the board of regents of the University of Wisconsin
(UW) System adjusts program revenue-funded positions or the secretary of
administration adjusts authorized expenditures from a program revenue account
during the fiscal year immediately preceding any new fiscal biennium, the
department of administration (DOA) may, within 30 days after the effective date of
the biennial budget act, provide a report to the joint committee on finance indicating
any modifications to positions funded from program revenue or funding levels for

sum certain appropriations made from program revenue that are necessary to
continue into the current fiscal biennium any positions authorized by the governor
or board of regents or any funding adjusted by the secretary. If, within 14 working
days after receiving the report, the joint committee on finance does not schedule a
meeting to review the report, DOA may make the modifications indicated in the
report.
This bill applies this procedure, in addition, to positions funded from general
purpose revenue and segregated revenue, other than federal revenue. The bill also
applies the procedure to actions of the joint committee on finance which increase the
number of positions or supplement funding for a state agency during the fiscal year
preceding the fiscal biennium of the budget act.
Gifts, grants and bequests to state agencies
Currently, when a gift, grant or bequest is made to a state agency, other than
to an agency that is authorized by law to accept it and to expend the proceeds for the
purpose of carrying out the programs of the agency, the gift, grant or bequest is not
valid until it is approved by the joint committee on finance.
Under this bill, the gift, grant or bequest is valid upon submission of a report
by the department of administration (DOA) to the joint committee on finance
specifying the source, if known; the amount; and the state agency to which it was
directed.
Designation of amounts received by state agencies as refunds of
expenditures
Currently, moneys received by a state agency that are not appropriated are
generally not available for expenditure until they are appropriated. However, if a
state agency receives an adjustment of a previously recorded expenditure from a sum
certain appropriation to that agency due to activities that are of a temporary nature
or activities that could not be anticipated during budget development and which
serves to reduce or eliminate the previously recorded expenditure in the same fiscal
year in which the previously recorded expenditure was made, the secretary of
administration may, upon request of the agency, designate the adjustment as a
refund of an expenditure. When designated, the refund becomes available for
expenditure. An agency which proposes to designate an adjustment as a refund of
an expenditure must provide to the secretary an explanation of the conditions under
which it was received, including a reference to the law creating the function of the
agency under which the adjustment was received, the appropriation account from
which the previously recorded expenditure was made and the purpose of the original
expenditure and any new proposed expenditure. The secretary may waive
submission of explanations for specified categories of refunds of expenditures.
Under this bill, the department of administration (DOA) prescribes written
policies for identification of refunds of expenditures. The policies need not be
promulgated as administrative rules. An adjustment received by a state agency may
be recorded as a refund of expenditures upon submission to the secretary of
administration of a written explanation of the circumstances under which the
adjustment was received which qualify the adjustment to be so recorded. The
secretary may waive the requirement for submission of explanations for specified

categories of refunds of expenditures. An agency need not provide any other
information to the secretary. An agency need not have the secretary's specific
approval to expend an amount received as a refund of expenditures, provided that
the expenditure is made in accordance with the policies prescribed by DOA. An
amount received as a result of an expenditure in one fiscal year may be credited and
expended in a subsequent fiscal year. An amount may be credited to and expended
from a continuing (nonlapsing) appropriation account such as a program revenue
account as well as from a sum certain appropriation account, but not from a sum
sufficient appropriation account. If the previously recorded expenditure was made
from a sum sufficient appropriation account, the amount is recorded as a credit
against expenditures from that account for purposes of the state budget report. The
reason for receipt of an adjustment need not be related to activities of a temporary
nature or activities that were not anticipated during budget development. Any
expenditure of moneys received as a refund of expenditures is contingent upon
continuance of the appropriation account to which the moneys are proposed to be
credited and from which the moneys are proposed to be expended in a form that
permits crediting and expenditure of the moneys.
Other
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:
SB288, s. 1 1Section 1. 16.50 (1) (a) of the statutes is amended to read:
SB288,4,22 16.50 (1) (a) Each department except the legislature and the courts shall
3prepare and submit to the secretary an estimate of the amount of money which it
4proposes to expend, encumber or distribute under any appropriation in ch. 20. The
5department of administration shall prepare and submit estimates for expenditures
6from appropriations under ss. 20.855, 20.865, 20.866 and 20.867. The secretary may
7waive the submission of estimates of other than administrative expenditures from
8such funds as he or she determines, but the secretary shall not waive submission of
9estimates for the appropriations under s. 20.285 (1) (im) and (n) nor for expenditure
10of any amount designated as a refund of an expenditure under s. 20.001 (5)
.
11Estimates shall be prepared in such form, at such times and for such time periods

1as the secretary requires. Revised and supplemental estimates may be presented at
2any time under rules promulgated by the secretary.
SB288, s. 2 3Section 2. 16.517 of the statutes, as affected by 1995 Wisconsin Act 27, is
4amended to read:
SB288,5,6 516.517 (title) Adjustments of program revenue positions position and
6funding levels.
No later than 30 days after the effective date of each biennial
7budget act, the department shall provide to the cochairpersons of the joint committee
8on finance a report indicating any initial proposed modifications that are necessary
9to the appropriation levels established under that act for program revenue and
10program revenue-service appropriations as defined in s. 20.001 (2) (b) and (c)
any
11sum certain appropriation
or to the number of full-time equivalent positions funded
12from program revenue and program revenue-service appropriations authorized by
13any revenue source except federal revenues under that act to account for any
14additional funding or positions authorized under s. 13.10, 16.505 (2) or (2m) or 16.515
15in the fiscal year immediately preceding the fiscal biennium of the budget that have
16not been included in appropriations or authorizations under the biennial budget act
17but which should be included as continued budget appropriations or authorizations
18in the fiscal biennium of the budget due to their continuing nature. Such
19modifications shall be limited to adjustment of the appropriation or position levels
20to the extent required to account for higher base levels for the fiscal year immediately
21preceding the fiscal biennium of the budget due to appropriation or position
22increases authorized under s. 13.10, 16.505 (2) or (2m) or 16.515 during the fiscal
23year immediately preceding the fiscal biennium of the budget. If the cochairpersons
24of the committee do not notify the secretary that the committee has scheduled a
25meeting for the purpose of reviewing the proposed modifications within 14 working

1days after the date of receipt of the department's report, the department may make
2the modifications specified in the report. If, within 14 working days after the date
3of the department's report, the cochairpersons of the committee notify the secretary
4that the committee has scheduled a meeting for the purpose of reviewing the
5proposed modifications, the department may not make the modifications specified
6in the report until the committee approves the report.
SB288, s. 3 7Section 3. 20.001 (4) of the statutes is amended to read:
SB288,5,148 20.001 (4) General purpose revenue — earned. Revenue which is received by
9a state agency incidentally in connection with general purpose revenue
10appropriations in the course of accomplishing program objectives, which is not
11designated as a refund of an expenditure by the secretary of administration under
12sub. (5) and for which no program revenue appropriation is made shall be designated
13as general purpose revenue (GPR) — earned. This revenue shall be treated as a
14nonappropriated receipt and is not available for expenditure.
SB288, s. 4 15Section 4. 20.001 (5) of the statutes is amended to read:
SB288,7,1116 20.001 (5) Refunds of expenditures. Any Except as otherwise provided in this
17subsection, any
amount not otherwise appropriated under this chapter that is
18received by a state agency as a result of an adjustment made to a previously recorded
19expenditure expenditures from a sum certain an appropriation to that agency due
20to activities that are of a temporary nature or activities that could not be anticipated
21during budget development
, other than a sum sufficient appropriation, and which
22serves to reduce or eliminate the previously recorded expenditure in the same fiscal
23year in which the previously recorded expenditure was made may, upon request of
24the agency, be designated
expenditures may be recorded by the secretary of
25administration
agency as a refund of an expenditure. Except as otherwise provided

1in this subsection, the secretary
expenditures. The department of administration
2may designate an amount shall prescribe written policies for identification of
3amounts
received by a state agency agencies as a refund refunds of an expenditure
4only if the agency submits to the secretary a written explanation of the
5circumstances under which the amount was received that includes a specific
6reference in a statutory or nonstatutory law to a function of the agency under which
7the amount was received and the appropriation from which the previously recorded
8expenditure was made. A refund of an expenditure shall be deposited by the
9receiving state agency in the appropriation account from which the previously
10recorded expenditure was made
expenditures. Except as otherwise provided in this
11subsection, a state agency which proposes to make an expenditure from moneys
12designated
record an amount received as a refund of an expenditure expenditures
13shall submit to the secretary of administration a written explanation of the purpose
14of the expenditure, including a specific reference in a statutory or nonstatutory law
15to a function of the agency under which the expenditure is to be made and the
16appropriation from which the expenditure is to be made. After submission and
17approval of an estimate of the amount proposed to be expended under s. 16.50 (2),
18a state agency may expend the moneys received from the refund of the expenditure

19circumstances under which the amount was received which qualify the amount to be
20so recorded
. The secretary of administration may waive submission of any an
21explanation required by under this subsection for categories of refunds of
22expenditures or proposed refunds of expenditures specified by the secretary. Any
23amount recorded as a refund of expenditures shall be credited by the receiving state
24agency to the appropriation account from which the previously recorded
25expenditures were made unless the account is a sum sufficient appropriation

1account. If the previously recorded expenditures were made from a sum sufficient
2appropriation account, the amount shall be recorded by the state agency, for
3purposes of s. 16.46, as a credit against the total disbursements from that account.
4Upon crediting of an amount to an appropriation account, the state agency may
5expend any amount credited during the period for which the appropriation is made
6if the expenditure is made in accordance with this subsection and policies prescribed
7by the secretary of administration under this subsection. Expenditure of any
8amount credited under this subsection is contingent upon continuance of the
9appropriation account to which the amount is proposed to be credited and from which
10the moneys are proposed to be expended in a form that permits crediting and
11expenditure of the moneys
.
SB288, s. 5 12Section 5. 20.855 (6) (g) of the statutes is amended to read:
SB288,7,2213 20.855 (6) (g) Gifts and grants. As a continuing appropriation, all moneys
14received from moneys gifts, grants or bequests deposited in the general fund under
15s. 20.907 (1) to carry out the purposes for which such moneys were given received.
16The department of administration may establish numeric subunits from the
17appropriation made under this paragraph for each state agency or division thereof
18which receives or is designated to act as trustee for a gift, grant , or bequest or devise
19for which no specific appropriation is made under this chapter
. For internal
20accounting purposes only, the department may reflect the amounts in each subunit
21under the appropriation totals for the respective state agencies administering the
22programs for which the gifts, grants, or bequests or devises are used.
SB288, s. 6 23Section 6. 20.865 (8) (title) of the statutes is amended to read:
SB288,7,2524 20.865 (8) (title) Supplementation of program revenue-and program
25revenue-service
Interim adjustments of appropriations.
SB288, s. 7
1Section 7. 20.865 (8) (a) of the statutes is created to read:
SB288,8,42 20.865 (8) (a) Supplementation of general purpose revenue appropriations. A
3sum sufficient to supplement sum certain general purpose revenue appropriations
4as provided under s. 16.517.
SB288, s. 8 5Section 8. 20.865 (8) (q) of the statutes is created to read:
SB288,8,86 20.865 (8) (q) Supplementation of segregated revenue appropriations. A sum
7sufficient to supplement sum certain segregated revenue appropriations as provided
8under s. 16.517.
SB288, s. 9 9Section 9. 20.907 (1) of the statutes is renumbered 20.907 (1) (a) and amended
10to read:
SB288,8,2111 20.907 (1) (a) Unless otherwise provided by law, all gifts, grants, bequests and
12devises to the state or
whenever any gift, grant or bequest is made to any state agency
13for the benefit or advantage of the state, whether made to trustees or otherwise, shall
14be
other than one that is authorized by law to receive it and to expend the proceeds
15for the purpose of carrying out its programs, the gift, grant or bequest is
legal and
16valid when approved by upon submission of a report by the department of
17administration to the cochairpersons of
the joint committee on finance and. The
18report shall specify the source of the gift, grant or bequest, if known; the amount; and
19the state agency to which it was directed. If the gift, grant or bequest is in the form
20of cash, the department of administration shall deposit the proceeds in the general
21fund and credit the proceeds to the appropriation account under s. 20.855 (6) (g).
SB288,9,7 22(c) Each legal and valid gift, grant or bequest shall be executed and enforced
23according to the provisions of the instrument making the same, including all
24provisions and directions in any such instrument for accumulation of the income of
25any fund or rents and profits of any real estate without being subject to the

1limitations and restrictions provided by law in other cases; but no such accumulation
2shall be allowed to produce a fund more than 20 times as great as that originally
3given. When such gifts, grants, bequests or devises include a gift, grant or bequest
4includes
common stocks or other investments which are not authorized by s. 881.01,
5such common stocks or other investments may be held and may be exchanged,
6invested or reinvested in similar types of investments without being subject to the
7limitations provided by law in other cases.
SB288, s. 10 8Section 10. 20.907 (1) (b) of the statutes is created to read:
SB288,9,129 20.907 (1) (b) Unless otherwise provided by law, whenever any gift, grant or
10bequest is made to the state but is not received by a state agency for the purposes of
11carrying out its programs, the gift, grant or bequest is legal and valid when accepted
12by the joint committee on finance.
SB288, s. 11 13Section 11. 20.907 (2) of the statutes is amended to read:
SB288,9,2114 20.907 (2) Custody and accounting. The state treasurer shall have custody
15of all such gifts, grants, bequests and devises any gift, grant or bequest governed by
16sub. (1)
in the form of cash or securities. The department of administration shall keep
17a separate account for each state agency receiving such gifts, grants , or bequests and
18devises
, including therein investments, accumulations, payments and any other
19transaction pertaining to such moneys. If no state agency is designated by the donor
20to carry out the purposes of the conveyance, the joint committee on finance shall
21appoint a state agency to act as trustee.
SB288, s. 12 22Section 12. 227.01 (13) (zo) of the statutes is created to read:
SB288,9,2423 227.01 (13) (zo) Prescribes policies for identifying or justifying state accounting
24transactions as refunds of expenditures under s. 20.001 (5).
SB288,9,2525 (End)
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