2017 - 2018 LEGISLATURE
April 5, 2017 - Introduced by Representatives Hutton,
Duchow, Gannon, Horlacher, Jarchow, Katsma, Kremer, Kulp, Murphy,
Petersen, Quinn, Thiesfeldt, Tittl and Tusler, cosponsored by Senators
Kapenga, Cowles, Craig, Darling, Feyen, Nass and Stroebel. Referred to
Committee on State Affairs.
1An Act to renumber and amend
16.84 (5); and to create
16.84 (5) (b) of the 2
statutes; relating to: state leases for real property.
Analysis by the Legislative Reference Bureau
Under current law, the Department of Administration has the general
responsibility for leasing real property by the state. Under this bill, DOA, when
entering into or renewing a lease, must conduct a cost-benefit analysis comparing
the proposed lease to the purchase of the space or another suitable space and must
evaluate comparable lease options within a 10-mile radius to ensure that the
proposed lease rates do not exceed lease rates on comparable properties or the
market rate by more than 5 percent. In addition, under the bill, if a proposed lease
involves an annual rent of more than $500,000, it must be signed by the secretary
of administration and DOA must submit the proposed lease, as well as the
cost-benefit analysis and evaluation of comparable lease rates, to the Joint
Committee on Finance for a 14-day passive review.
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:
16.84 (5) of the statutes is renumbered 16.84 (5) (a) and amended 4
(a) Have responsibility, subject to approval of the governor, for all 2
functions relating to the leasing, acquisition, allocation,
and utilization of all real 3
property by the state, except where such responsibility is otherwise provided by the 4
statutes. In exercising
this connection responsibility
, the department shall may not
5enter into, extend, or renew a lease involving an annual rent of more than $500,000
6unless the secretary signs the lease, a copy of the proposed lease is submitted
7electronically to the chief clerk of each house for distribution, and the department
8notifies the joint committee on finance of the proposed lease and provides the
9committee with the information under par. (b) as well as a summary report of that
10information, including the terms of the lease and the lease rate per square foot of the
11proposed property and the comparable options. If the cochairpersons of the joint
12committee on finance do not notify the secretary that the committee has scheduled
13a meeting for the purpose of reviewing the proposed lease within 14 working days
14after the date of the notification, the lease may be entered into, extended, or renewed.
15If, within 14 working days after the date of the notification, the cochairpersons of the
16committee notify the secretary that the committee has scheduled a meeting for the
17purpose of reviewing the proposed lease, the lease may be entered into, extended, or
18renewed only upon approval of the committee.
19(c) When exercising the responsibility under par. (a)
, with the governor's 20
approval, require physical consolidation of office space utilized by any executive 21
branch agency, as defined in s. 16.70 (4),
having fewer than 50 authorized full-time 22
equivalent positions with office space utilized by another executive branch agency, 23
whenever feasible. The department shall lease
or acquire office space for legislative offices or legislative service 2
agencies at the direction of the joint committee on legislative organization. In this
3subsection, “executive branch agency" has the meaning given in s. 16.70 (4).
16.84 (5) (b) of the statutes is created to read:
(b) Before entering into, extending, or renewing a lease, do all of the 6
1. Conduct a cost-benefit analysis comparing the lease with purchasing the 8
space or another suitable space.
2. Evaluate comparable lease options within a 10-mile radius of the property 10
proposed in the lease to ensure the lease rate per square foot does not exceed the lease 11
rate per square foot on comparable properties or the market rate by more than 5 12
This act first applies to leases entered into, renewed, or extended on the 15
effective date of this subsection.