CMH/RAC/MES:nwn:md
2009 - 2010 LEGISLATURE
March 23, 2010 - Introduced by Representatives Gottlieb, Kerkman, Suder, Vos,
Rhoades, LeMahieu, Kaufert, Townsend
and Brooks, cosponsored by
Senators Holperin, Kreitlow, Kapanke, Harsdorf, Schultz, Cowles and
Leibham. Referred to Committee on Labor.
AB888,1,4 1An Act to amend 16.75 (1) (a) 1. and 16.855 (1); and to create 16.75 (10r),
216.856, 66.0502 and 230.144 of the statutes; relating to: employment
3eligibility verification requirements for state and local government employees
4and state procurement and construction contracts.
Analysis by the Legislative Reference Bureau
This bill makes the following changes to state procurement law and to state
government and local government employment practices:
State procurement
Under current law, the Department of Administration (DOA), other agencies
to which DOA has delegated the authority, the legislature, the judicial branch, and
authorities may purchase all necessary materials and contractual services. Current
law also generally authorizes DOA to contract for construction work when the project
cost is estimated to exceed $40,000. With some exceptions, such purchases or
contracts must be awarded to the lowest bidder.
This bill creates a new exception to the lowest-bidder award by prohibiting the
state from purchasing or contracting for materials or services, including construction
work, with an employer that does not verify, by using the Federal Employment
Eligibility Verification Program (Federal E-Verify Program), that all of its
employees are eligible to work in the United States or that employs an individual
after the Federal E-Verify Program identifies that the individual is not eligible to
work in the United States. The Federal E-Verify Program is a system operated by

the federal Department of Homeland Security and the federal Social Security
Administration that allows an employer to enroll in the system and verify that its
employees are eligible to work in the United States. If the state discovers that a
contract into which it has entered violates this prohibition, the state must terminate
the contract.
State government and local government employment practices
This bill provides that a state government agency or local governmental unit
that intends to hire an employee after the bill's effective date must verify the
individual's identity under the Federal E-Verify Program. A state government
agency or local governmental unit may not offer employment to any individual who
is identified under the Federal E-Verify Program as ineligible to work in the United
States. The bill further provides that, before July 1, 2011, each state government
agency and local governmental unit must verify the identity of all of its employees
under the Federal E-Verify Program. If a state government agency or local
governmental unit determines that an employee is identified under the Federal
E-Verify Program as ineligible to work in the United States, the local governmental
unit must discharge the employee.
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:
AB888, s. 1 1Section 1. 16.75 (1) (a) 1. of the statutes, as affected by 2009 Wisconsin Act 136,
2is amended to read:
AB888,2,113 16.75 (1) (a) 1. All orders awarded or contracts made by the department for all
4materials, supplies, equipment, and contractual services to be provided to any
5agency, except as otherwise provided in par. (c) and subs. (2), (2g), (2m), (3m), (3t),
6(6), (7), (8), (9), (10e), and (10m), and (10r) and ss. 16.705 (1r), 16.73 (4) (a), 16.751,
716.754, 16.964 (8), 50.05 (7) (f), 153.05 (2m) (a), and 287.15 (7), shall be awarded to
8the lowest responsible bidder, taking into consideration life cycle cost estimates
9under sub. (1m), when appropriate, the location of the agency, the quantities of the
10articles to be supplied, their conformity with the specifications, and the purposes for
11which they are required and the date of delivery.
AB888, s. 2
1Section 2. 16.75 (10r) of the statutes is created to read:
AB888,3,62 16.75 (10r) (a) In this subsection, "federal employment eligibility verification
3program" means the system operated by the federal department of homeland
4security and the federal social security administration that allows an employer to
5enroll in the system and verify that its employees are eligible to work in the United
6States.
AB888,3,107 (b) The department, a designated purchasing agent under s. 16.71, an agency
8making purchases under s. 16.74, and any authority may not enter into a contract
9or order for the purchase of materials, supplies, equipment, or contractual services
10with any of the following:
AB888,3,1211 1. Except as provided in par. (e), a person that is an employer who is not enrolled
12in the federal employment eligibility verification program.
AB888,3,1513 2. A person that is an employer who is knowingly employing an individual who
14has been identified by the federal employment eligibility verification program as
15ineligible to work in the United States.
AB888,3,2016 (c) If the department, a designated purchasing agent under s. 16.71, an agency
17making purchases under s. 16.74, or any authority discovers that it has entered into
18a contract or order that violates par. (b), it shall terminate the contract or order
19without liability for the uncompleted portion or any materials or services purchased
20or paid for by the employer for use in completing the contract or order.
AB888,3,2421 (d) All contracts entered into under this section must contain written
22notification of the requirements in this subsection and a place for the employer who
23is awarded the contract to sign indicating that he or she is in compliance with the
24requirements.
AB888,4,2
1(e) Paragraph (b) 1. does not apply if the federal employment eligibility
2verification program is discontinued.
AB888, s. 3 3Section 3. 16.855 (1) of the statutes is amended to read:
AB888,4,144 16.855 (1) The department shall let by contract to the lowest qualified
5responsible bidder all construction work when the estimated construction cost of the
6project exceeds $40,000, except for construction work authorized under s. 16.858 and
7except as provided in sub. (10m) or s. 13.48 (19) or 16.856. If a bidder is not a
8Wisconsin firm and the department determines that the state, foreign nation or
9subdivision thereof in which the bidder is domiciled grants a preference to bidders
10domiciled in that state, nation or subdivision in making governmental purchases,
11the department shall give a preference over that bidder to Wisconsin firms, if any,
12when awarding the contract, in the absence of compelling reasons to the contrary.
13The department may enter into agreements with states, foreign nations and
14subdivisions thereof for the purpose of implementing this subsection.
AB888, s. 4 15Section 4. 16.856 of the statutes is created to read:
AB888,4,18 1616.856 Employment eligibility verification. (1) In this section, "federal
17employment eligibility verification program" has the meaning given in s. 16.75 (10r)
18(a).
AB888,4,20 19(2) The department may not let any construction work by contract under s.
2016.855 (1) to any of the following persons:
AB888,4,2221 (a) Except as provided in sub. (5), a person that is an employer who is not
22enrolled in the federal employment eligibility verification program.
AB888,4,2523 (b) A person that is an employer who is knowingly employing an individual who
24has been identified by the federal employment eligibility verification program as
25ineligible to work in the United States.
AB888,5,4
1(3) If the department discovers that it has let any construction work by a
2contract that violates sub. (2), it shall terminate the contract without liability for the
3uncompleted portion or any materials or services purchased or paid for by the
4employer for use in completing the contract.
AB888,5,8 5(4) All contracts entered into under s. 16.855 (1) must contain written
6notification of the requirements in this section and a place for the employer who is
7awarded the contract to sign indicating that he or she is in compliance with the
8requirements.
AB888,5,10 9(5) Subsection (2) (a) does not apply if the federal employment eligibility
10verification program is discontinued.
AB888, s. 5 11Section 5. 66.0502 of the statutes is created to read:
AB888,5,13 1266.0502 Federal employment eligibility verification program. (1)
13Definitions. In this section:
AB888,5,1514 (a) "Federal employment eligibility verification program" has the meaning
15given in s. 16.75 (10r) (a).
AB888,5,1616 (b) "Local governmental unit" has the meaning given in s. 66.0131 (1) (a).
AB888,5,22 17(2) Verification requirements. (a) A local governmental unit that intends to
18hire an employee on or after the effective date of this paragraph .... [LRB inserts
19date], shall verify the individual's identity under the federal employment eligibility
20verification program. A local governmental unit may not offer employment to any
21individual who is identified under the federal employment eligibility verification
22program as ineligible to work in the United States.
AB888,6,223 (b) Before July 1, 2011, each local governmental unit shall verify the identity
24of all of its employees under the federal employment eligibility verification program.
25If a local governmental unit determines that an employee is identified under the

1federal employment eligibility verification program as ineligible to work in the
2United States, the local governmental unit shall discharge the employee.
AB888,6,4 3(3) This section does not apply if the federal employment eligibility verification
4program is discontinued.
AB888, s. 6 5Section 6. 230.144 of the statutes is created to read:
AB888,6,8 6230.144 Federal employment eligibility verification program. (1) In
7this section, "federal employment eligibility verification program" has the meaning
8given in s. 16.75 (10r) (a).
AB888,6,14 9(2) Beginning on the effective date of this subsection .... [LRB inserts date], an
10agency shall verify under the federal employment eligibility verification program the
11identity of each individual that it intends to appoint to a position. An agency may
12not offer employment to any individual who is identified under the federal
13employment eligibility verification program as ineligible to work in the United
14States.
AB888,6,19 15(3) Before July 1, 2011, each agency shall verify under the federal employment
16eligibility verification program the identity of each of its employees. If an agency
17determines that an employee is identified under the federal employment eligibility
18verification program as ineligible to work in the United States, the agency shall
19discharge the employee.
AB888,6,21 20(4) This section does not apply if the federal employment eligibility verification
21program is discontinued.
AB888, s. 7 22Section 7 . Initial applicability.
AB888,6,2523 (1) State procurement and construction contracts. The treatment of
24sections 16.75 (10r) and 16.856 of the statutes first applies to a contract or order that
25is entered into on the effective date of this subsection.
AB888,7,5
1(2) Collective bargaining agreements. The treatment of sections 66.0502 and
2230.144 of the statutes first applies to an employee who is affected by a collective
3bargaining agreement that contains provisions inconsistent with this act on the day
4on which the collective bargaining agreement expires or is extended, modified, or
5renewed, whichever occurs first.
AB888,7,66 (End)
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