LRB-3378/2
CMH:kjf&cjs:rs
2007 - 2008 LEGISLATURE
February 15, 2008 - Introduced by Representatives Moulton, Van Roy, Berceau,
Mursau, Kaufert, Gunderson, Molepske, Hahn, Musser, Albers, Townsend,
Honadel and Vukmir, cosponsored by Senators Lassa, S. Fitzgerald, Coggs,
Cowles and Olsen. Referred to Committee on Small Business.
AB811,1,9
1An Act to renumber and amend 16.75 (3m) (a), 16.75 (3m) (b), 16.75 (3m) (c)
24., 16.75 (3m) (c) 5., 16.75 (4) (a), 16.75 (4) (b), 16.75 (4) (c), 16.75 (4) (d) and
316.755 (5);
to amend 13.48 (29), 15.107 (2), 16.701 (1), 16.75 (3m) (c) 1., 2. and
43., 16.755 (intro.), (1) and (4), 16.855 (1), 16.855 (22) and 560.035 (1) (b); and
to
5create 16.75 (3m) (a) 1., 16.75 (3m) (a) 4., 16.75 (3m) (b) 2. and 3., 16.75 (3m)
6(c) 4. b., 16.75 (3m) (c) 5. b., 16.755 (4m), 16.755 (5) (a), (b), (c), (d) and (e), 16.855
7(10L) and 560.0345 of the statutes;
relating to: awarding procurements to
8woman-owned businesses, veteran-owned businesses, minority businesses,
9and small businesses.
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 certain
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. This bill expands
the definition of minority-owned businesses for this purpose to include a business
that is owned by a person with a disability.
This bill also creates similar preferences, under which state agencies must
attempt to ensure that, of the total amount expended for state procurements in each
fiscal year, 25 percent is paid to small businesses, 5 percent is paid to woman-owned
businesses certified by the Department of Commerce, and 5 percent is paid to
veteran-owned businesses certified by the Department of Veterans Affairs. Under
the bill, with certain limited exceptions, the current authorization to accept bids or
proposals submitted by minority-owned businesses 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 small businesses, woman-owned businesses, and
veteran-owned businesses.
Under current law, in the Department of Administration, there is a Counsel on
Small Business, Veteran-Owned Business and Minority Business Opportunities.
This bill adds woman-owned business owners to the council and adds other
requirements to its duties including the promotion of locally produced products.
This bill also requires the Department of Commerce to maintain a Web site to
help agencies making purchases comply with the procurement preferences by listing
veteran-owned businesses, woman-owned businesses, minority businesses, and
small businesses, the locations of each business, and the products and services
offered by each business.
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:
AB811, s. 1
1Section
1. 13.48 (29) of the statutes is amended to read:
AB811,2,52
13.48
(29) Small projects. Except as otherwise required under s. 16.855
(10L)
3or (10m), the building commission may prescribe simplified policies and procedures
4to be used in lieu of the procedures provided in s. 16.855 for any project that does not
5require prior approval of the building commission under sub. (10) (a).
AB811, s. 2
6Section
2. 15.107 (2) of the statutes is amended to read:
AB811,3,167
15.107
(2) Council on small business, veteran-owned business, woman-owned
8business, and minority business opportunities. There is created in the department
9of administration a council on small business, veteran-owned business
,
1woman-owned business, and minority business opportunities consisting of
13 7 2members,
appointed nominated by the
secretary of administration governor, and
3with the advise and consent of the senate appointed, for 3-year terms, with
4representation as follows:
at least 2 shall be owners
or employees of small businesses
5at least 51% owned by one or more members of a racial minority group; at least one
6shall be an owner or employee of a small business at least 51% owned by one or more
7handicapped persons; at least one shall be an owner or employee of a small business
8operated on a nonprofit basis for the rehabilitation of disabled persons; at least 2, as
9defined in s. 16.75 (3m) (a) 2.; one shall be
owners or employees an owner of
a 10veteran-owned
businesses business, as defined in s. 16.75
(4) (d); at least one shall
11be a representative of the department of commerce; and at least one shall be a
12consumer member (3m) (a) 3.; 2 shall be owners of woman-owned businesses, as
13defined in s. 16.75 (3m) (a) 4.; and 2 shall be owners of minority businesses, as defined
14in s. 16.75 (3m) (a) 1m. No member may serve for more than 2 consecutive full terms.
15The secretary of administration, or a department employee who is the secretary's
16designee, shall serve as the council's nonvoting secretary.
AB811, s. 3
17Section
3. 16.701 (1) of the statutes is amended to read:
AB811,3,2418
16.701
(1) The department
may shall provide a subscription service containing
19current information of interest to prospective vendors concerning state procurement
20opportunities
. If the department provides the service, the department and shall
21assist small businesses, as defined in s. 16.75
(4) (c) (3m) (a) 2., who are prospective
22vendors in accessing and using the service by providing facilities or services to the
23businesses. The department may charge a fee for any such service. The department
24shall prescribe the amount of any fee by rule.
AB811, s. 4
1Section
4. 16.75 (3m) (a) of the statutes is renumbered 16.75 (3m) (a) (intro.)
2and amended to read:
AB811,4,33
16.75
(3m) (a) (intro.) In this subsection
, "minority:
AB811,4,6
41m. "Minority business" means a business certified by the department of
5commerce under s. 560.036 (2)
or a business that is at least 51 percent owned by a
6person with a disability.
AB811, s. 5
7Section
5. 16.75 (3m) (a) 1. of the statutes is created to read:
AB811,4,98
16.75
(3m) (a) 1. "Designated business" means a minority business, small
9business, woman-owned business, or veteran-owned business.
AB811, s. 6
10Section
6. 16.75 (3m) (a) 4. of the statutes is created to read:
AB811,4,1211
16.75
(3m) (a) 4. "Woman-owned business" means a business certified by the
12department of commerce under s. 560.035.
AB811, s. 7
13Section
7. 16.75 (3m) (b) of the statutes is renumbered 16.75 (3m) (b) 1. and
14amended to read:
AB811,5,215
16.75
(3m) (b) 1. The department and any agency making purchases under s.
1616.74 shall
attempt to ensure that 5% of the total amount expended under this
17subchapter in each fiscal year is paid to minority give preference to designated 18businesses. Except as provided under
subd. 3. and sub. (7), the department
or agency 19may purchase materials, supplies, equipment and contractual services from any
20minority designated business submitting a qualified responsible competitive bid
21that is no more than 5% higher than the apparent low bid or competitive proposal
22that is no more than 5% higher than the most advantageous
offer proposal. In
23administering the preference for
minority designated businesses established in this
24paragraph, the department and any agency making purchases under s. 16.74 shall
1maximize the use of
minority designated businesses which are incorporated under
2ch. 180 or which have their principal place of business in this state.
AB811, s. 8
3Section
8. 16.75 (3m) (b) 2. and 3. of the statutes are created to read:
AB811,5,84
16.75
(3m) (b) 2. The department and any agency making purchases under s.
516.74 shall attempt to ensure that of the total amount expended under this
6subchapter in each fiscal year, 25 percent is paid to small businesses, 5 percent is
7paid to minority businesses, 5 percent is paid to woman-owned businesses, and 5
8percent is paid to veteran-owned businesses.
AB811,5,169
3. The department and any agency making purchases under s. 16.74 may
10purchase materials, supplies, equipment, and contractual services from any
11designated business submitting a qualified responsible competitive bid that is no
12more than 10 percent higher than the apparent low bid or competitive proposal that
13is no more than 10 percent higher than the most advantageous proposal if not more
14than 3 years have passed since the designated business was certified, if the
15designated business is a woman-owned or veteran-owned business, or since the
16designated business qualified as a minority business or small business.
AB811, s. 9
17Section
9. 16.75 (3m) (c) 1., 2. and 3. of the statutes are amended to read:
AB811,5,2318
16.75
(3m) (c) 1. After completing any contract under this subchapter, the
19contractor shall report to the agency that awarded the contract any amount of the
20contract that was subcontracted to minority businesses
, any amount of the contract
21that was subcontracted to woman-owned businesses, any amount of the contract
22that was subcontracted to veteran-owned businesses, and any amount of the
23contract that was subcontracted to small businesses.
AB811,6,1024
2. Each agency shall report to the department at least semiannually, or more
25often if required by the department, the total amount of money it has expended for
1contracts and orders awarded to minority businesses and the number of contacts
2with minority businesses in connection with proposed purchases
, the total amount
3of money it has expended for contracts and orders awarded to woman-owned
4businesses and the number of contacts with woman-owned businesses in connection
5with proposed purchases, the total amount of money it has expended for contracts
6and orders awarded to veteran-owned businesses and the number of contacts with
7veteran-owned businesses in connection with proposed purchases, and the total
8amount of money it has expended for contracts and orders awarded to small
9businesses and the number of contacts with small businesses in connection with
10proposed purchases.
AB811,6,1411
3. The department shall maintain and annually publish data on state
12purchases from minority businesses,
woman-owned businesses, veteran-owned
13businesses, and small businesses, including amounts expended and the percentage
14of total expenditures awarded to
minority businesses
each type of business.
AB811, s. 10
15Section
10. 16.75 (3m) (c) 4. of the statutes is renumbered 16.75 (3m) (c) 4.
16(intro.) and amended to read:
AB811,6,2017
16.75
(3m) (c) 4. (intro.) The department shall annually prepare and submit
18a report to the governor and to the chief clerk of each house of the legislature, for
19distribution to the appropriate standing committees under s. 13.172 (3), on
all of the
20following:
AB811,7,2
21a. With regard to minority businesses, the total amount of money paid to and
22of indebtedness or other obligations underwritten by minority businesses, minority
23financial advisers and minority investment firms under the requirements of this
24subsection and ss. 16.855 (10m), 16.87 (2), 25.185, 84.075 and 565.25 (2) (a) 3. and
1on this state's progress toward achieving compliance with par. (b) and ss. 16.855
2(10m) (a) and (10n), 16.87 (2), 25.185 and 84.075 (1).
AB811, s. 11
3Section
11. 16.75 (3m) (c) 4. b. of the statutes is created to read:
AB811,7,64
16.75
(3m) (c) 4. b. With regard to small businesses, woman-owned businesses,
5and veteran-owned businesses, this state's progress toward achieving compliance
6with par. (b) and s. 16.855 (10L) (a).
AB811, s. 12
7Section
12. 16.75 (3m) (c) 5. of the statutes is renumbered 16.75 (3m) (c) 5. a.
8and amended to read:
AB811,7,139
16.75
(3m) (c) 5. a. In determining whether a purchase, contract
, or subcontract
10complies with the goal established under par. (b) or s. 16.855 (10m), 16.87 (2)
, or
1125.185
, the department shall include only amounts paid
directly to minority
12businesses, minority financial advisers
, and minority investment firms certified by
13the department of commerce under s. 560.036 (2).
AB811, s. 13
14Section
13. 16.75 (3m) (c) 5. b. of the statutes is created to read:
AB811,7,1815
16.75
(3m) (c) 5. b. In determining whether a purchase, contract, or subcontract
16complies with the goal established under par. (b) or s. 16.855 (10L), the department
17may include only amounts paid directly to woman-owned businesses,
18veteran-owned businesses, and small businesses.
AB811, s. 14
19Section
14. 16.75 (4) (a) of the statutes is renumbered 16.75 (3m) (d) and 16.75
20(3m) (d) (intro.), 1., 2., 3. and 5., as renumbered, are amended to read:
AB811,8,221
16.75
(3m) (d) (intro.) The department shall encourage the participation of
22minority businesses, woman-owned businesses, small businesses
, and
23veteran-owned businesses in the statewide purchasing program by ensuring that
24there are no undue impediments to such participation and by actively encouraging
25minority businesses, woman-owned businesses, small businesses
, and
1veteran-owned businesses to play an active role in the solicitation of purchasing
2business by agencies. To that end the department shall:
AB811,8,63
1. Maintain comprehensive lists of
minority businesses, woman-owned
4businesses, small businesses
, and
of veteran-owned businesses located in this state
5which have indicated a willingness to provide materials, supplies, equipment
, or
6contractual services to the state.
AB811,8,107
2. Develop ways of simplifying specifications and terms so that they will not
8impose unnecessary administrative burdens on
minority businesses, woman-owned
9businesses, small businesses
, and veteran-owned businesses located in this state
10which submit bids or proposals to the state.
AB811,8,1311
3. Assist
minority businesses, woman-owned businesses, small businesses
, 12and veteran-owned businesses located in this state in complying with the state's
13competitive bidding and competitive proposal procedures.
AB811,8,1914
5. By October 1 of each year, submit a report to the council on small business,
15veteran-owned business
, woman-owned business, and minority business
16opportunities which evaluates the performance of small businesses located in this
17state in submitting bids or proposals to the state and makes recommendations for
18increased involvement of such businesses in submitting competitive bids and
19proposals under this section.
AB811, s. 15
20Section
15. 16.75 (4) (b) of the statutes is renumbered 16.75 (3m) (e) and
21amended to read:
AB811,8,2322
16.75
(3m) (e) The department shall seek the cooperation and assistance of the
23department of commerce in the performance of its duties under par.
(a) (d).
AB811, s. 16
24Section
16. 16.75 (4) (c) of the statutes is renumbered 16.75 (3m) (a) 2. and
25amended to read:
AB811,9,3
116.75
(3m) (a) 2.
In this section and s. 16.755, "small "Small business" means
2a business which has had less than
$1.5 $2.5 million in gross annual sales
, or had
3fewer than 25 full-time employees, in the most recent calendar or fiscal year.
AB811, s. 17
4Section
17. 16.75 (4) (d) of the statutes is renumbered 16.75 (3m) (a) 3. and
5amended to read:
AB811,9,96
16.75
(3m) (a) 3.
In this subsection and s. 16.755, "veteran-owned 7"Veteran-owned business" means a
small business
, as defined in par. (c), that is
8certified by the department of veterans affairs as being at least 51% owned by one
9or more veterans, as defined in s. 45.01 (12).
AB811, s. 18
10Section
18. 16.755 (intro.), (1) and (4) of the statutes are amended to read: