AB908: Bill Text

LRB-2732/2

JTK&CTS:wj:ch

2005 - 2006 LEGISLATURE

2005 Assembly BILL 908

January 3, 2006 - Introduced by Representatives Fields, Sinicki, Grigsby, Berceau, Young, Kessler, A. Williams, Seidel, Turner, Toles and Nischke. Referred to Committee on State Affairs.

AB908,2,5 An Act to renumber and amend 16.75 (3m) (a), 16.75 (3m) (b), 16.855 (10m) (a), 16.87 (2), 18.16 (2), 18.16 (3), 18.16 (4), 18.64 (2), 18.64 (3), 18.64 (4), 18.77 (2), 18.77 (3), 18.77 (4), 23.41 (6), 25.185 (2), 84.075 (1), 200.57 (2) and 560.035; to amend 16.75 (3m) (c), 16.855 (10m) (b), 16.855 (10m) (c), 16.855 (14) (a), 18.16 (title), 18.16 (5), 18.16 (6), 18.64 (title), 18.64 (5), 18.64 (6), 18.77 (title), 18.77 (5), 18.77 (6), 25.185 (title), 25.185 (3), 84.075 (title), 84.075 (2), 84.075 (3), 200.57 (title) and 560.035 (title); to repeal and recreate 18.16 (1), 18.64 (1), 18.77 (1), 25.185 (1) and 200.57 (1); and to create 16.75 (3m) (a) 2., 16.75 (3m) (a) 3., 16.75 (3m) (b) 2., 16.75 (3m) (b) 3., 16.855 (10m) (ac), 16.855 (10m) (am) 2., 16.855 (10m) (am) 3., 16.87 (1) (d), 16.87 (1) (e), 16.87 (1) (f), 16.87 (2) (c), 16.87 (2) (d), 18.16 (2) (b) and (c), 18.16 (3) (b) and (c), 18.16 (4) (b) and (c), 18.64 (2) (b) and (c), 18.64 (3) (b) and (c), 18.64 (4) (b) and (c), 18.77 (2) (b) and (c), 18.77 (3) (b) and (c), 18.77 (4) (b) and (c), 23.41 (1) (c), 23.41 (1) (d), 23.41 (1) (e), 23.41 (6) (b), 23.41 (6) (c), 25.185 (2) (b), 25.185 (2) (c), 84.075 (1c), 84.075 (1m) (b), 84.075 (1m) (c), 200.57 (2) (b), 200.57 (2) (c), 560.033, 560.035 (1) and (2) (title) and (b) to (i) and 560.035 (3) of the statutes; relating to: awarding state and metropolitan sewerage district procurements to minority businesses, woman-owned businesses, and service-disabled veterans businesses and granting rule-making authority.

Analysis by the Legislative Reference Bureau

Currently, minority-owned businesses that are certified by the Department of Commerce receive certain preferences in governmental procurement. State agencies must attempt to ensure that 5 percent of the total amount expended for state procurements in each fiscal year is paid to minority-owned businesses. With the exception of non-highway construction work and certain other limited exceptions, state agencies that are subject to requirements to make purchases through competitive bidding or competitive sealed proposals may accept a bid or proposal from a minority-owned business that is no more than 5 percent higher than the apparent low bid or most advantageous proposal. Unless the secretary of administration reports to the Joint Committee on Finance the reasons for not doing so, the Building Commission must ensure that at least 6 percent of the total long-term state public debt, revenue bonding, and short-term borrowing in each fiscal year is underwritten by minority-owned investment firms. The Investment Board must attempt to ensure that 5 percent of the total funds it expends for financial and investment analysis and for common stock and convertible bond brokerage commissions in each fiscal year is expended for the services of minority-owned financial advisers or minority-owned investment firms. In addition, metropolitan sewerage commissions serving metropolitan sewerage districts that encompass first class cities (Milwaukee) must attempt to ensure that 5 percent of that total funds expended for financial and investment analysis and for common stock and convertible bond brokerage commissions in each fiscal year is expended for the services of minority-owned financial advisers or minority-owned investment firms.

This bill increases the percentage of state and metropolitan sewerage commission procurements that is directed at minority-owned businesses under these laws to 8 percent or, where applicable, at least 8 percent. The bill also creates similar preferences of 5 percent of state and metropolitan sewerage commission procurements or at least 5 percent, where applicable, for woman-owned businesses certified by the Department of Commerce and 2 percent of state and metropolitan sewerage commission procurements or at least 2 percent, where applicable, for service-disabled veteran-owned businesses certified by the Department of Commerce. Under the bill, the current authorization to accept bids or proposals that are no more than 5 percent higher than the apparent low bid or most advantageous proposal is extended to apply to bids or proposals submitted by certified woman-owned or service-disabled veteran-owned businesses.

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:

AB908, s. 1 Section 1. 16.75 (3m) (a) of the statutes is renumbered 16.75 (3m) (a) (intro.) and amended to read:

AB908,3,3 16.75 (3m) (a) (intro.) In this subsection, "minority:

AB908,3,5 1. "Minority business" means a business certified by the department of commerce under s. 560.036 (2).

AB908, s. 2 Section 2. 16.75 (3m) (a) 2. of the statutes is created to read:

AB908,3,8 16.75 (3m) (a) 2. "Service-disabled veteran-owned business" means a business certified by the department of commerce under s. 560.033 (2).

AB908, s. 3 Section 3. 16.75 (3m) (a) 3. of the statutes is created to read:

AB908,3,11 16.75 (3m) (a) 3. "Woman-owned business" means a business certified by the department of commerce under s. 560.035 (2).

AB908, s. 4 Section 4. 16.75 (3m) (b) of the statutes is renumbered 16.75 (3m) (b) 1. and amended to read:

AB908,3,16 16.75 (3m) (b) 1. The department and any agency making purchases under s. 16.74 shall attempt to ensure that 5% 8 percent of the total amount expended under this subchapter in each fiscal year is paid to minority businesses.

AB908,4,7 4. Except as provided under sub. (7), the department may purchase materials, supplies, equipment, and contractual services from any minority business, woman-owned business, or service-disabled veteran-owned business submitting a qualified responsible competitive bid that is no more than 5% higher than the apparent low bid or competitive proposal that is no more than 5% higher than the most advantageous offer proposal. In administering the preference for minority businesses established in this paragraph, the department and any agency making purchases under s. 16.74 shall maximize the use of minority businesses , woman-owned businesses, and service-disabled veteran-owned businesses which are incorporated under ch. 180 or which have their principal place of business in this state.

AB908, s. 5 Section 5. 16.75 (3m) (b) 2. of the statutes is created to read:

AB908,4,11 16.75 (3m) (b) 2. The department and any agency making purchases under s. 16.74 shall attempt to ensure that 5 percent of the total amount expended under this subchapter in each fiscal year is paid to woman-owned businesses.

AB908, s. 6 Section 6. 16.75 (3m) (b) 3. of the statutes is created to read:

AB908,4,15 16.75 (3m) (b) 3. The department and any agency making purchases under s. 16.74 shall attempt to ensure that 2 percent of the total amount expended under this subchapter in each fiscal year is paid to service-disabled veteran-owned businesses.

AB908, s. 7 Section 7. 16.75 (3m) (c) of the statutes is amended to read:

AB908,4,20 16.75 (3m) (c) 1. After completing any contract under this subchapter, the contractor shall report to the agency that awarded the contract any amount of the contract that was subcontracted to minority businesses, woman-owned businesses, and service-disabled veteran-owned businesses.

AB908,4,25 2. Each agency shall report to the department at least semiannually, or more often if required by the department, the total amount of money it has expended for contracts and orders awarded to minority businesses, woman-owned businesses, and service-disabled veteran-owned businesses and the number of contacts with minority businesses in connection with proposed purchases.

AB908,5,5 3. The department shall maintain and annually publish data on state purchases from minority businesses, woman-owned businesses, and service-disabled veteran-owned businesses, including amounts expended and the percentage of total expenditures awarded to minority businesses, woman-owned businesses, and service-disabled veteran-owned businesses.

AB908,5,15 4. The department shall annually prepare and submit a report to the governor and to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3), on the total amount of money paid to and of indebtedness or other obligations underwritten by minority, woman-owned, and service-disabled veteran-owned businesses,: minority, woman-owned, and service-disabled veteran financial advisers; and minority, woman-owned, and service-disabled veteran investment firms under the requirements of this subsection and ss. 16.855 (10m), 16.87 (2), 25.185, 84.075, and 565.25 (2) (a) 3. and on this state's progress toward achieving compliance with par. (b) and ss. 16.855 (10m) (a) (am) and (10n), 16.87 (2), 25.185, and 84.075 (1) (1m).

AB908,5,22 5. In determining whether a purchase, contract, or subcontract complies with the goal established under par. (b) or s. 16.855 (10m), 16.87 (2), or 25.185 the department shall include only amounts paid to minority, woman-owned, and service -disabled veteran-owned businesses,; minority, woman-owned, and service-disabled veteran financial advisers; and minority, woman-owned, and service-disabled veteran investment firms certified by the department of commerce under s. 560.036 (2).

AB908, s. 8 Section 8. 16.855 (10m) (a) of the statutes is renumbered 16.855 (10m) (am) 1. and amended to read:

AB908,6,4 16.855 (10m) (am) 1. In awarding construction contracts the department shall attempt to ensure that 5% 8 percent of the total amount expended in each fiscal year is awarded to contractors and subcontractors which are minority businesses, as defined under s. 16.75 (3m) (a).

AB908,6,7 4. The department may award any contract to a minority business, woman-owned business, or service-disabled veteran-owned business that submits a qualified responsible bid that is no more than 5% higher than the apparent low bid.

AB908, s. 9 Section 9. 16.855 (10m) (ac) of the statutes is created to read:

AB908,6,9 16.855 (10m) (ac) In this subsection:

AB908,6,11 1. "Minority business" means a business certified by the department of commerce under s. 560.036 (2).

AB908,6,13 2. "Service-disabled veteran-owned business" means a business certified by the department of commerce under s. 560.033 (2).

AB908,6,15 3. "Woman-owned business" means a business certified by the department of commerce under s. 560.035 (2).

AB908, s. 10 Section 10. 16.855 (10m) (am) 2. of the statutes is created to read:

AB908,6,19 16.855 (10m) (am) 2. In awarding construction contracts the department shall attempt to ensure that 5 percent of the total amount expended in each fiscal year is awarded to contractors and subcontractors that are woman-owned businesses.

AB908, s. 11 Section 11. 16.855 (10m) (am) 3. of the statutes is created to read:

AB908,6,24 16.855 (10m) (am) 3. In awarding construction contracts, the department shall attempt to ensure that 2 percent of the total amount expended in each fiscal year is awarded to contractors and subcontractors that are service-disabled veteran-owned businesses.

AB908, s. 12 Section 12. 16.855 (10m) (b) of the statutes is amended to read:

AB908,7,4 16.855 (10m) (b) Upon completion of any contract, the contractor shall report to the department any amount of the contract that was subcontracted to minority businesses, woman-owned businesses, or service-disabled veteran-owned businesses.

AB908, s. 13 Section 13. 16.855 (10m) (c) of the statutes is amended to read:

AB908,7,9 16.855 (10m) (c) The department shall maintain and annually publish data on contracts awarded to minority businesses, woman-owned businesses, and service-disabled veteran-owned businesses under this subsection and ss. 16.87 and 84.075.

AB908, s. 14 Section 14. 16.855 (14) (a) of the statutes is amended to read:

AB908,7,21 16.855 (14) (a) If the estimated construction cost of a project exceeds $100,000 and bids are required to be solicited under sub. (2), the department shall take both single bids and separate bids on any division of the work that it designates. If the estimated construction cost of a project does not exceed $100,000 and bids are required to be solicited under sub. (2), the department may take single bids or separate bids on any division of the work that it designates. If the department awards contracts by the division of work, the department shall award the contracts according to the division of work selected for bidding. Except as provided in sub. (10m) (a) (am), the department shall award all contracts to the lowest qualified responsible bidder or bidders that result in the lowest total construction cost for the project.