2005 - 2006 LEGISLATURE
June 28, 2005 - Introduced by Representatives Berceau, Black, Sinicki, Shilling,
Zepnick
and Grigsby, cosponsored by Senators Miller and Carpenter.
Referred to Committee on Labor.
AB520,1,6 1An Act to amend 16.75 (6) (e), 16.855 (18), 16.855 (21) and 16.855 (22); and to
2create
16.753, 16.855 (23) and 560.29 of the statutes; relating to: requiring
3companies to report net losses of jobs to the Department of Commerce, making
4such companies and certain expatriate companies ineligible for certain tax
5exemptions, governmental contracts, grants, and loans, granting rule-making
6authority, and providing a penalty.
Analysis by the Legislative Reference Bureau
Beginning in January 2007, this bill requires a business that experienced a net
loss of at least 50 employees in the preceding calendar year to notify the Department
of Commerce (Commerce). The company must also complete and submit to
Commerce a job relocation survey that includes, among other things, a statement of
the number of those jobs that were transferred to employees located outside the
United States and any contracts with or grants or loans made by the state or local
government.
Under the bill, any company that has had a net loss of at least 50 employees
because of jobs being transferred to employees outside of the United States and any
expatriate company (a company that is organized under the laws of another country
that is closely related to a company or former company organized in the United
States) is, for a period of seven years, ineligible to: 1) receive any income or franchise
tax credit or property tax exemption; 2) enter into a contract with the state or a local

governmental unit for the construction, remodeling, or repair of a public work or
building, or for the furnishing of supplies, services, equipment, or material of any
kind; and 3) receive any grants or loans from the state or from a local governmental
unit. Under the bill, Commerce is required to maintain and update a list of such
companies, and to post the list on its Web site. Agencies and local governmental units
must review the list before entering into public contracts.
The ineligibility of a company under the bill may be waived or modified if
Commerce believes that doing so is necessary to meet a compelling public interest,
Commerce submits a written justification to the Department of Administration
(DOA) and the Joint Committee on Finance (JCF), and both DOA and JCF approve
the waiver. Finally, before entering into a contract with an agency or local
governmental unit, a company must submit a declaration that the company is
eligible to enter the contract under the bill. A company that knowingly makes a false,
material statement in a declaration is guilty of a misdemeanor.
For further information see the state and local 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:
AB520, s. 1 1Section 1. 16.75 (6) (e) of the statutes is amended to read:
AB520,2,112 16.75 (6) (e) The governor or his or her designee may waive any requirement
3of this subchapter if the governor or his or her designee finds that there exists an
4emergency which threatens the public health, safety or welfare and the waiver is
5necessary to meet the emergency. The governor or his or her designee shall require
6the award of each contract under this paragraph to be made with such competition
7as is practicable under the circumstances. The governor or his or her designee shall
8file with the department a statement of facts constituting the emergency for each
9waiver issued under this paragraph, and a statement of the basis for selection of each
10contractor under the emergency procedure. This paragraph does not apply to the
11requirement requirements specified in sub. (7) and s. 16.753.
AB520, s. 2 12Section 2. 16.753 of the statutes is created to read:
AB520,3,6
116.753 Companies experiencing job losses and expatriate companies.
2No company whose name is certified by the department of commerce under s. 560.29
3(3) and no expatriate company, as defined in s. 560.29 (1), is eligible to enter into any
4contract with an agency for the purchase of materials, supplies, equipment, or
5contractual services for a period of 7 years beginning with the year in which the
6company is required to submit a report under s. 560.29 (2).
AB520, s. 3 7Section 3. 16.855 (18) of the statutes is amended to read:
AB520,3,118 16.855 (18) This Except as provided in sub. (23), this section shall not apply
9to restoration or reconstruction of the state capitol building, historic structures at the
10old world Wisconsin site and at Heritage Hill state park when the department
11determines that a waiver of this section would serve the best interests of this state.
AB520, s. 4 12Section 4. 16.855 (21) of the statutes is amended to read:
AB520,3,1613 16.855 (21) This Except as provided in sub. (23), this section does not apply to
14contracts by the department of natural resources for construction work related to
15hazardous substance spill response under s. 292.11 or environmental repair under
16s. 292.31.
AB520, s. 5 17Section 5. 16.855 (22) of the statutes is amended to read:
AB520,4,218 16.855 (22) The provisions of this section, except sub. subs. (10m) and (23), do
19not apply to construction work for any project the estimated construction cost of
20which does not exceed $100,000 if the project is constructed in accordance with
21policies and procedures prescribed by the building commission under s. 13.48 (29).
22If the estimated construction cost of any project is at least $30,000, and the building
23commission elects to utilize the procedures prescribed under s. 13.48 (29) to construct
24the project, the department shall provide adequate public notice of the project and

1the procedures to be utilized to construct the project on a publicly accessible
2computer site.
AB520, s. 6 3Section 6. 16.855 (23) of the statutes is created to read:
AB520,4,94 16.855 (23) No company whose name is certified by the department of
5commerce under s. 560.29 (3) and no expatriate company, as defined in s. 560.29 (1)
6(c), is eligible to enter into any contract with an agency for engineering or
7architectural services or for construction work, as defined in s. 16.87 (1) (a) for a
8period of 7 years beginning with the year in which the company is required to submit
9a report under s. 560.29 (2).
AB520, s. 7 10Section 7. 560.29 of the statutes is created to read:
AB520,4,12 11560.29 Companies experiencing job losses and expatriate companies.
12(1) Definitions. In this section:
AB520,4,1313 (a) "Agency" has the meaning given in s. 16.70 (1e).
AB520,4,1614 (b) "Company" means any organization or enterprise operated for profit,
15including a proprietorship, partnership, firm, business trust, joint venture,
16syndicate, corporation, limited liability company, or association.
AB520,4,2017 (c) "Expatriate company" means an entity that the department determines is
18incorporated under the laws of a foreign country, that issues shares for which the
19United States is the principal market for public trading, that has no substantial
20business activities in its country of incorporation, and that was one of the following:
AB520,5,621 1. Established in connection with a transaction or series of related transactions
22pursuant to which the entity directly or indirectly acquired substantially all of the
23properties held by a corporation incorporated in the United States or all of the
24properties constituting a trade or business of a partnership organized in the United
25States or a related partnership not organized in the United States, and immediately

1after the acquisition, more than 50 percent of the shares, by vote or value, of the
2entity was held by former shareholders of the corporation incorporated in the United
3States or by former partners of the partnership organized in the United States or a
4related partnership not organized in the United States. For purposes of this
5subdivision, any shares sold in a public offering related to the transaction or a series
6of transactions is disregarded.
AB520,5,157 2. Established in connection with a transaction or series of related transactions
8pursuant to which the entity directly or indirectly acquired substantially all of the
9properties held by a corporation incorporated in the United States or all of the
10properties constituting a trade or business of a partnership organized in the United
11States or a related partnership not organized in the United States, if the acquiring
12entity is more than 50 percent owned, by vote or value, by shareholders or partners
13who are residents of the United States. For purposes of this subdivision, indirect
14acquisition of property includes the acquisition of a share, or any portion thereof, of
15the owner of that property.
AB520,5,1616 (d) "Local governmental unit" has the meaning given in s. 66.0131 (1) (a).
AB520,5,1917 (e) "Public contract" means a contract for the construction, execution, repair,
18remodeling, or improvement of a public work or building or for the furnishing of
19supplies services, equipment, or material of any kind.
AB520,5,23 20(2) Reporting. (a) On or before January 31, 2007, and annually by January
2131 thereafter, any company doing business in this state that had a net loss of at least
2250 employees in this state during the preceding calendar year shall notify the
23department of the loss.
AB520,6,3
1(b) The department shall send to each company that notifies the department
2under par. (a) a job relocation survey that shall include, in addition, to any other
3information required by the department, all of the following:
AB520,6,44 1. The name and principle place of business of the company.
AB520,6,65 2. Identification of any public contracts that the company has with the state
6or a local governmental unit.
AB520,6,87 3. Identification of any grants or loans that the company has received from this
8state or a local governmental unit.
AB520,6,109 4. Identification of any tax exemptions or credits that the company claims
10under ch. 70 or 71.
AB520,6,1211 5. A statement of the number of the company's employees in this state who lost
12their jobs in the preceding calendar year.
AB520,6,1413 6. A statement of the number of jobs that the company added in this state in
14the preceding calendar year.
AB520,6,1715 7. A statement of the number of the company's employees in this state who lost
16their jobs because the jobs were transferred to employees located outside of the
17United States.
AB520,6,2118 (c) A company shall complete and return the survey to the department within
1930 days of receiving it. A company that fails to respond to the survey is subject to the
20penalties under sub. (4) until such time that the survey is completed and returned
21to the department.
AB520,6,25 22(3) Certified list. The department shall maintain a list of companies that are
23subject to the penalties under sub. (4) and shall post, and update, that list on its Web
24site. Waivers or modifications made under sub. (5) shall be noted on the list and Web
25site.
AB520,7,6
1(4) Penalties. Notwithstanding the provisions of any tax exemption under ch.
270 or tax credit under ch. 71 for which a company would otherwise be eligible, no
3company that has had a net loss of at least 50 employees because of jobs being
4transferred to employees outside of the United States, as reported under sub. (2) (b)
57., an no expatriate company shall, for a period of 7 years beginning with the year
6in which the company is required to report the loss under sub. (2), be eligible to:
AB520,7,77 (a) Receive any tax exemption under ch. 70 or any tax credit under ch. 71.
AB520,7,88 (b) Enter into a public contract with a local governmental unit.
AB520,7,109 (c) Receive any grants or loans from this state or from a local governmental
10unit.
AB520,7,1211 (d) Enter into a contract for the purchase of materials, supplies, equipment, or
12contractual services with any agency.
AB520,7,1413 (e) Enter into a contract for engineering or architectural services or for
14construction work, as defined in s. 16.87 (1) (a), with any agency.
AB520,7,22 15(5) Waivers; modifications. (a) A waiver or modification of a penalty in sub.
16(4) may be granted if the appropriate agency finds that the waiver or modification
17of a penalty that would otherwise be imposed is necessary to meet a compelling public
18interest, the department concurs, and the conditions of par. (b) are met. A waiver or
19modification of a penalty in sub. (4) that would otherwise be imposed on a company
20that is a prospective vendor to a local governmental unit may be granted if the
21department finds that the waiver or modification is necessary to meet a compelling
22public interest and the conditions of par. (b) are met.
AB520,8,623 (b) If the department under par. (a) concurs with an agency or finds that a
24waiver or modification request is necessary to meet a compelling public interest, it
25shall prepare a detailed opinion to that effect and submit the opinion and the request

1to the department of administration and the joint committee on finance. A waiver
2or modification request may only be granted under this section if both the
3department of administration and the joint committee on finance approve the
4request. The department of administration and the joint committee on finance shall
5approve or disapprove under this paragraph within 30 days of submission of the
6opinion and request.
AB520,8,11 7(6) Declaration; misdemeanor for false statements. (a) Before entering into
8a public contract, all agencies and local governmental units shall review the
9department's Web site list described under sub. (3). As a condition of entering into
10a public contract with an agency or local governmental unit, a company shall submit
11a declaration stating that the company is not on the list under sub. (3).
AB520,8,1412 (b) A company that declares as true any material matter in a declaration under
13par. (a) that the company knows or has reason to believe is false is guilty of a
14misdemeanor.
AB520,8,16 15(7) Rules. The department shall promulgate rules to implement and
16administer this section.
AB520,8,1717 (End)
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