Wisconsin Legislature: 299,101

299,99 Section 99. 234.36 of the statutes is created to read:

234.36 Disabled veteran-owned business financial interests. (1) In this section, "business," "financial adviser," and "investment firm" mean a business, financial adviser, and investment firm certified by the department of commerce under s. 560.033 (3).

(2) The authority shall annually report to the department of administration the total amount purchased from and contracted or subcontracted under contracts made by the authority to businesses, the total amount of bonds and notes issued by the authority with the underwriting services of investment firms, and the total amount of moneys expended by the authority for the services of financial advisers during the preceding state fiscal year.

299,100 Section 100. 560.033 of the statutes is created to read:

560.033 Disabled veteran-owned businesses. (1) Definitions. In this section, unless the context requires otherwise:

(a) "Business" means a sole proprietorship, partnership, limited liability company, joint venture, or corporation.

(b) "Disabled veteran" means a person who is verified by the department of veterans affairs as being all of the following at the time the person applies for certification under sub. (3):

1. A veteran, as defined in s. 45.01 (12).

2. A resident of this state.

3. A person who is in receipt of an award from the U.S. department of veterans affairs of a service-connected disability rating under 38 USC 1114 or 1134 of at least 30 percent.

(d) "Financial adviser" means a business that serves as an adviser with regard to the sale of evidences of indebtedness or other obligations.

(e) "Investment firm" means a business that serves as a manager, comanager, or in any other underwriting capacity with regard to the sale of evidences of indebtedness or other obligations or as a broker-dealer as defined in s. 551.102 (4).

(f) "Useful business function" means the provision of materials, supplies, equipment, or services to customers, including the state.

(2) Disabled veteran-owned business database. The department shall develop, maintain, and keep current a computer database of businesses certified under this section.

(3) Disabled veteran-owned business, financial adviser, and investment firm certification. (a) Any business, financial adviser, or investment firm may apply to the department for certification under this section.

(b) The department shall certify a business, financial adviser, or investment firm under this section if, after conducting an investigation, the department determines that the business, financial adviser, or investment firm fulfills all of the following requirements:

1. One or more disabled veterans owns not less than 51 percent of the business, financial adviser, or investment firm or, in the case of any publicly owned business, financial adviser, or investment firm, one or more disabled veterans owns not less than 51 percent of the stock of the business, financial adviser, or investment firm.

2. One or more disabled veterans or one or more duly authorized representatives of one or more disabled veterans controls the management and daily business operations of the business, financial adviser, or investment firm.

3. The business, financial adviser, or investment firm has its principal place of business in this state.

4. The business, financial adviser, or investment firm is currently performing a useful business function. Acting as a conduit for the transfer of funds to a business that is not certified under this section does not constitute a useful business function, unless doing so is a normal industry practice.

(c) The department may charge each business, financial adviser, or investment firm applying for certification under this section a fee to cover the department's expenses in making the certification determination.

(d) If a business, financial adviser, or investment firm fails to provide the department with sufficient information to enable the department to conduct an investigation or does not qualify for certification under par. (b), the department shall deny the application. A business, financial adviser, or investment firm whose application is denied may, within 30 days after the date of the denial, appeal in writing to the secretary. The secretary shall enter his or her final decision within 30 days after receiving the appeal.

(e) 1. The department may, at the request of any state agency or on its own initiative, evaluate any business, financial adviser, or investment firm certified under this section to verify that it continues to qualify for certification. The business, financial adviser, or investment firm shall provide the department with any records or information necessary to complete the examination.

2. If a business, financial adviser, or investment firm fails to comply with a reasonable request for records or information, the department shall notify the business, financial adviser, or investment firm and the departments of administration and transportation, in writing, that it intends to decertify the business, financial adviser, or investment firm.

3. If, after an evaluation under this paragraph, the department determines that a business, financial adviser, or investment firm no longer qualifies for certification under this section, the department shall notify the business, financial adviser, or investment firm and the departments of administration and transportation, in writing, that it intends to decertify the business, financial adviser, or investment firm.

(f) The business, financial adviser, or investment firm may, within 30 days after a notice is sent under par. (e) 2. or 3., appeal in writing to the secretary. If the business, financial adviser, or investment firm does not submit an appeal under this paragraph, the department shall immediately decertify the business, financial adviser, or investment firm. If an appeal is submitted under this paragraph, the secretary shall enter his or her final decision, in writing, within 30 days after receiving the appeal. If the secretary confirms the decision of the department, the department shall immediately decertify the business, financial adviser, or investment firm. A business, financial adviser, or investment firm decertified under this paragraph may, within 30 days after the secretary's decision, request a contested case hearing under s. 227.42 from the department. If the final administrative or judicial proceeding results in a determination that the business, financial adviser, or investment firm qualifies for certification under this section, the department shall immediately certify the business, financial adviser, or investment firm. The department shall provide the business, financial adviser, or investment firm and the departments of administration and transportation with a copy of the final written decision regarding certification under this paragraph.

(4) Department rule making. The department shall promulgate by administrative rule procedures to implement this section.

299,101 Section 101. Nonstatutory provisions.

(1) Disabled veteran-owned business certification; rules. Using the procedure under section 227.24 of the statutes, the department of commerce shall promulgate the rules required under section 560.033 (4) of the statutes, as created by this act, for the period before the effective date of the permanent rules promulgated under section 560.033 (4) of the statutes, as created by this act, but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 277.24 (1) (a), (2) (b), and (3) of the statutes, the department is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.

(2) Report and recommendations concerning disabled veteran-owned business procurement.

(a) In this subsection:

1. "Agency" has the meaning given in section 16.70 (1e) of the statutes.

2. "Disabled veteran-owned business" means a business certified by the department of commerce under section 560.033 (3) of the statutes, as created by this act.

3. "Disabled veteran-owned financial adviser" means a financial adviser certified by the department of commerce under section 560.033 (3) of the statutes, as created by this act.

4. "Disabled veteran-owned investment firm" means an investment firm certified by the department of commerce under section 560.033 (3) of the statutes, as created by this act.

(b) No later than March 31 of the 4th year beginning after the year in which this subsection takes effect the department of administration shall report to the appropriate standing committees of the legislature in the manner provided under section 13.172 (3) of the statutes concerning the percentage of orders place by and contracts entered into by agencies under subchapters IV and V of chapter 16 of the statutes and sections 25.185 and 84.075 of the statutes and shall recommend to the committees either a goal consisting of a percentage of the total amount of money that will be annually paid to disabled veteran-owned businesses, disabled veteran-owned financial advisers, and disabled veteran-owned investment firms by agencies or a goal consisting of an annual percentage increase in the total amount of money that will be paid to disabled veteran-owned businesses, disabled veteran-owned financial advisers, and disabled veteran-owned investment firms by agencies in at least the 5-year period ending on December 31 of the 5th year beginning after the date of the report. In calculating the percentages under this paragraph, the department shall exclude any purchases or contracts that are not subject to a purchasing or contracting preference as a result of the application of section 16.75 (3m) (c) 4. of the statutes, as affected by this act.

299,102 Section 102. Initial applicability.

(1) This act first applies with respect to contracts entered into and orders placed on the effective date of this subsection.

299,103 Section 103. Effective dates. This act takes effect on the first day of the 6th month beginning after publication, except as follows:

(1) The creation of section 560.033 of the statutes takes effect on the day after publication.