LRB-0066/1
TK/JTK/CH/AG/MS/rc:kjf:ph
2009 - 2010 LEGISLATURE
April 23, 2009 - Introduced by Representatives Sherman, Turner, Hilgenberg, J.
Ott, Petrowski, Berceau, Jorgensen, Pope-Roberts, Richards, Shilling and
Smith, cosponsored by Senators Kreitlow, Lehman, Taylor and
Vinehout.
Referred to Committee on Veterans and Military Affairs.
AB228,2,9
1An Act to renumber 18.16 (2), 18.16 (3), 18.16 (4), 18.16 (5), 18.64 (2), 18.64 (3),
218.64 (4), 18.64 (5), 18.77 (2), 18.77 (3), 18.77 (4), 18.77 (5), 85.25 (2) (c) 1. and
32., 229.46 (1) (a), 229.70 (1) (a) and 229.845 (1) (a);
to renumber and amend
416.75 (3m) (a), 16.75 (3m) (b), 16.75 (3m) (c) 2., 16.75 (3m) (c) 5., 16.855 (10m)
5(a), 16.87 (2), 84.075 (1) and 200.57 (1);
to amend 16.75 (3m) (c) 1., 16.75 (3m)
6(c) 3., 16.75 (3m) (c) 4., 16.855 (10m) (b), 16.855 (10m) (c), 16.855 (14) (a), 18.16
7(title), 18.16 (6), 18.64 (title), 18.64 (6), 18.77 (title), 18.77 (6), 23.41 (6), 25.185
8(title), 25.185 (3), 84.075 (title), 84.075 (2), 84.075 (3), 85.25 (2) (c) (intro.),
9200.57 (title), 229.46 (2) (intro.), 229.46 (3) (intro.), 229.70 (title), 229.70 (2),
10229.70 (3) (intro.), 229.70 (4), 229.70 (4m), 229.70 (5) (b) 1., 229.70 (5) (b) 2.,
11229.70 (5) (b) 3., 229.8273 (title), 229.8273 (2), 229.8273 (3), 229.8273 (4),
12229.8273 (5) (b) 1., 229.8273 (5) (b) 2., 229.8273 (5) (b) 3., 229.8273 (6), 229.845
13(title) and 229.845 (2);
to repeal and recreate 18.16 (1), 18.64 (1), 18.77 (1) and
1425.185 (1); and
to create 16.75 (3m) (a) 1., 2. and 3., 16.75 (3m) (b) 2., 16.75 (3m)
1(c) 2. b. and d., 16.75 (3m) (c) 5. b., 16.855 (10m) (ac), 16.855 (10m) (am) 2., 16.87
2(1) (am), 16.87 (2) (c), 18.16 (2) (b), 18.16 (3) (b), 18.16 (4) (b), 18.16 (5) (b), 18.64
3(2) (b), 18.64 (3) (b), 18.64 (4) (b), 18.64 (5) (b), 18.77 (2) (b), 18.77 (3) (b), 18.77
4(4) (b), 18.77 (5) (b), 84.075 (1c), 84.075 (1m) (b), 85.25 (2) (c) 2m., 200.57 (1) (a),
5200.57 (3), 229.46 (1) (ag), 229.70 (1) (ag), 229.8273 (1) (am), 229.845 (1) (ag),
6231.29, 234.36 and 560.033 of the statutes;
relating to: awarding state
7procurements to certified disabled veteran-owned businesses, providing an
8exemption from emergency rule procedures, and requiring the exercise of
9rule-making authority.
Analysis by the Legislative Reference Bureau
Currently, minority-owned businesses that are certified by the Department of
Commerce (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 nonhighway 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, presently only Milwaukee, must
attempt to ensure that 5 percent of the 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. Current law contracting
provisions that apply to special purpose districts (local exposition districts,
professional baseball park districts, professional football stadium districts, and
cultural arts districts) also contain provisions that relate to minority and women
hiring and contracting. Generally, persons awarded contracts for local exposition
districts must agree that at least 25 percent of the employees hired because of the
contracts will be minority group members; at least 5 percent of the employees hired
will be women; at least 25 percent of the aggregate dollar value of certain contracts
will be awarded to minority businesses; and at least 5 percent of the aggregate dollar
value of certain contracts will be awarded to women's business. In the case of the
other special districts, the minority and women contracting provisions are goals,
which generally include the same participation percentages, except that the
participation percentages for minority group members is 15 percent for football
stadium districts and cultural arts districts.
This bill creates similar preferences in awarding state contracts or orders to
disabled veteran-owned businesses certified by Commerce. The bill does not,
however, create any goals for total amounts or percentages of state contracts or
orders to be awarded to these businesses. The bill defines a disabled veteran as a
veteran who, at the time of application for certification, is a resident of the state and
is in receipt of an award from the U.S. Department of Veterans Affairs of a disability
rating of at least 30 percent.
Under the bill, Commerce must certify a business, financial adviser, or
investment firm that meets 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, if the business, financial adviser, or
investment firm is publicly owned, 51 percent of the stock.
2. One or more disabled veterans or duly authorized representatives of the
disabled veteran 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 performing a useful
business function. Useful business function is defined under the bill as the provision
of materials, supplies, equipment, or services to customers, including the state.
Commerce may decertify any business, financial adviser, or investment firm
that Commerce determines no longer qualifies for certification. The bill establishes
an appeal process for businesses, financial advisers, or investment firms decertified
by Commerce.
The bill directs the Department of Administration (DOA) to annually report to
the appropriate standing committees of the legislature concerning the total amount
of money and the percentage of the total amount of money paid to and the percentage
of the total amount of indebtedness underwritten by disabled veteran-owned
businesses, financial advisers, and investment firms. In addition, the bill directs
DOA to report to the same committees, no later than March 31 of the fourth year
beginning after the year in which the bill becomes law concerning DOA's
recommendations for either a goal consisting of a percentage of the total amount of
money that will be paid annually to disabled veteran-owned businesses, financial
advisers, and investment firms by state 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, financial advisers, and investment firms by state
agencies during at least the first full five-year period that follows the date of the
report. In calculating all amounts paid to and percentages of amounts paid to
businesses and firms, DOA is directed to exclude any contracts or purchases for
which a purchase preference would violate a federal law or regulation or any contract
between a state agency and a federal agency, or would result in a reduction in the
amount of federal aids received by this state.
The Department of Transportation (DOT) administers a disadvantaged
business mobilization assistance program, a loan guarantee program created to
assist disadvantaged businesses in obtaining capital to participate in DOT
construction contracts. Under the program, DOT may make grants to provide
funding for these loan guarantees. This bill makes disabled veteran-owned
businesses eligible for this program.
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:
AB228, s. 1
1Section
1. 16.75 (3m) (a) of the statutes is renumbered 16.75 (3m) (a) (intro.)
2and amended to read:
AB228,4,33
16.75
(3m) (a) (intro.) In this subsection
, "minority:
AB228,4,5
44. "Minority business" means a business certified by the department of
5commerce under s. 560.036 (2).
AB228, s. 2
6Section
2. 16.75 (3m) (a) 1., 2. and 3. of the statutes are created to read:
AB228,4,87
16.75
(3m) (a) 1. "Disabled veteran-owned business" means a business
8certified by the department of commerce under s. 560.033 (3).
AB228,4,109
2. "Disabled veteran-owned financial adviser" means a financial adviser
10certified by the department of commerce under s. 560.033 (3).
AB228,4,1211
3. "Disabled veteran-owned investment firm" means an investment firm
12certified by the department of commerce under s. 560.033 (3).
AB228, s. 3
13Section
3. 16.75 (3m) (b) of the statutes is renumbered 16.75 (3m) (b) 1. and
14amended to read:
AB228,5,3
116.75
(3m) (b) 1. The department and any agency making purchases under s.
216.74 shall attempt to ensure that
5% 5 percent of the total amount expended under
3this subchapter in each fiscal year is paid to minority businesses.
AB228,5,13
43. Except as provided under sub. (7), the department may purchase materials,
5supplies, equipment
, and contractual services from any minority business
or
6disabled veteran-owned business submitting a qualified responsible competitive bid
7that is no more than
5% 5 percent higher than the apparent low bid or competitive
8proposal that is no more than
5% 5 percent higher than the most advantageous
offer 9proposal. In administering the preference for minority businesses
or disabled
10veteran-owned businesses established in this paragraph, the department and any
11agency making purchases under s. 16.74 shall maximize the use of minority
12businesses
or disabled veteran-owned businesses which are incorporated under ch.
13180 or which have their principal place of business in this state.
AB228, s. 4
14Section
4. 16.75 (3m) (b) 2. of the statutes is created to read:
AB228,5,1715
16.75
(3m) (b) 2. The department and any agency making purchases under s.
1616.74 shall make efforts to ensure that a portion of the total amount expended under
17this subchapter in each fiscal year is paid to disabled veteran-owned businesses.
AB228, s. 5
18Section
5. 16.75 (3m) (c) 1. of the statutes is amended to read:
AB228,5,2219
16.75
(3m) (c) 1. After completing any contract under this subchapter, the
20contractor shall report to the agency that awarded the contract any amount of the
21contract that was subcontracted to minority businesses
and any amount of the
22contract that was subcontracted to disabled veteran-owned businesses.
AB228, s. 6
23Section
6. 16.75 (3m) (c) 2. of the statutes is renumbered 16.75 (3m) (c) 2.
24(intro.) and amended to read:
AB228,6,3
116.75
(3m) (c) 2. Each agency shall report to the department at least
2semiannually, or more often if required by the department,
the all of the following
3for the reporting period specified by the department:
AB228,6,5
4a. The total amount of money it has expended for contracts and orders awarded
5to minority businesses
and the.
AB228,6,7
6c. The number of contacts with minority businesses in connection with
7proposed purchases.
AB228, s. 7
8Section
7. 16.75 (3m) (c) 2. b. and d. of the statutes are created to read:
AB228,6,119
16.75
(3m) (c) 2. b. The total amount of money and the percentage of the total
10amount of money it has expended for contracts and orders awarded to disabled
11veteran-owned businesses.
AB228,6,1312
d. The number of contacts with disabled veteran-owned businesses in
13connection with proposed purchases.
AB228, s. 8
14Section
8. 16.75 (3m) (c) 3. of the statutes is amended to read:
AB228,6,1915
16.75
(3m) (c) 3. The department shall maintain and annually publish data on
16state purchases from minority businesses
and on state purchases from disabled
17veteran-owned businesses, including amounts expended and the percentage of total
18expenditures awarded to minority businesses
and amounts expended and the
19percentage of total expenditures awarded to disabled veteran-owned businesses.
AB228, s. 9
20Section
9. 16.75 (3m) (c) 4. of the statutes is amended to read:
AB228,7,1321
16.75
(3m) (c) 4. The department shall annually prepare and submit a report
22to the governor and to the chief clerk of each house of the legislature, for distribution
23to the appropriate standing committees under s. 13.172 (3), on the total amount of
24money paid to and
the amount of indebtedness or other obligations underwritten by
25minority businesses, minority financial advisers
and, minority investment firms
,
1disabled veteran-owned businesses, disabled veteran-owned financial advisers,
2and disabled veteran-owned investment firms under the requirements of this
3subsection and ss. 16.855 (10m), 16.87 (2), 25.185, 84.075 and 565.25 (2) (a) 3. and
4on this state's progress toward achieving compliance with par. (b) and ss. 16.855
5(10m)
(a) (am) and (10n), 16.87 (2), 25.185
, and 84.075
(1) (1m). The report shall also
6include the percentage of the total amount of money paid to and the percentage of
7the total amount of indebtedness or other obligations underwritten by disabled
8veteran-owned businesses, disabled veteran-owned financial advisers, and
9disabled veteran-owned investment firms. In calculating the percentages to be
10reported under this subsection, the department shall exclude any purchase or
11contract for which a preference would violate any federal law or regulation or any
12contract between an agency and a federal agency or any contract that would result
13in a reduction in the the amount of federal aids received by this state.
AB228, s. 10
14Section
10. 16.75 (3m) (c) 5. of the statutes is renumbered 16.75 (3m) (c) 5. a.
15and amended to read:
AB228,7,2016
16.75
(3m) (c) 5. a. In determining whether a purchase, contract or subcontract
17complies with the goal established under par. (b)
1. or s. 16.855 (10m)
(am) 1., 16.87
18(2)
(b), or 25.185
(2), the department shall include only amounts paid to minority
19businesses, minority financial advisers and minority investment firms certified by
20the department of commerce under s. 560.036 (2).
AB228, s. 11
21Section
11. 16.75 (3m) (c) 5. b. of the statutes is created to read:
AB228,7,2522
16.75
(3m) (c) 5. b. In determining whether a purchase, contract, or subcontract
23is made with a disabled veteran-owned business, the department shall include only
24amounts paid to disabled veteran-owned businesses certified by the department of
25commerce under s. 560.033 (3).
AB228, s. 12
1Section
12. 16.855 (10m) (a) of the statutes is renumbered 16.855 (10m) (am)
21. and amended to read:
AB228,8,63
16.855
(10m) (am) 1. In awarding construction contracts the department shall
4attempt to ensure that
5% 5 percent of the total amount expended in each fiscal year
5is awarded to contractors and subcontractors which are minority businesses, as
6defined under s. 16.75 (3m) (a)
4.
AB228,8,9
73. The department may award any contract to a minority business
or disabled
8veteran-owned business that submits a qualified responsible bid that is no more
9than
5% 5 percent higher than the apparent low bid.
AB228, s. 13
10Section
13. 16.855 (10m) (ac) of the statutes is created to read:
AB228,8,1211
16.855
(10m) (ac) In this subsection, "disabled veteran-owned business"
12means a business certified by the department of commerce under s. 560.033 (3).
AB228, s. 14
13Section
14. 16.855 (10m) (am) 2. of the statutes is created to read:
AB228,8,1714
16.855
(10m) (am) 2. In awarding construction contracts, the department shall
15make efforts to ensure that a portion of the total amount expended in each fiscal year
16is awarded to contractors and subcontractors that are disabled veteran-owned
17businesses.
AB228, s. 15
18Section
15. 16.855 (10m) (b) of the statutes is amended to read:
AB228,8,2119
16.855
(10m) (b) Upon completion of any contract, the contractor shall report
20to the department any amount of the contract that was subcontracted to minority
21businesses
or disabled veteran-owned businesses.
AB228, s. 16
22Section
16. 16.855 (10m) (c) of the statutes is amended to read:
AB228,8,2523
16.855
(10m) (c) The department shall maintain and annually publish data on
24contracts awarded to minority businesses
and disabled veteran-owned businesses 25under this subsection and ss. 16.87 and 84.075.
AB228, s. 17
1Section
17. 16.855 (14) (a) of the statutes is amended to read:
AB228,9,122
16.855
(14) (a) If a project requires prior approval of the building commission
3under s. 13.48 (10) (a) and bids are required to be solicited under sub. (2), the
4department shall take both single bids and separate bids on any division of the work
5that it designates. If a project does not require prior approval of the building
6commission under s. 13.48 (10) (a) and bids are required to be solicited under sub.
7(2), the department may take single bids or separate bids on any division of the work
8that it designates. If the department awards contracts by the division of work, the
9department shall award the contracts according to the division of work selected for
10bidding. Except as provided in sub. (10m)
(a) (am), the department shall award all
11contracts to the lowest qualified responsible bidder or bidders that result in the
12lowest total construction cost for the project.
AB228, s. 18
13Section
18. 16.87 (1) (am) of the statutes is created to read:
AB228,9,1514
16.87
(1) (am) "Disabled veteran-owned business" means a business certified
15by the department of commerce under s. 560.033 (3).
AB228, s. 19
16Section
19. 16.87 (2) of the statutes is renumbered 16.87 (2) (a) and amended
17to read:
AB228,9,2218
16.87
(2) (a) A contract for engineering services or architectural services or a
19contract involving an expenditure of $10,000 or more for construction work, or
20$30,000 or more for limited trades work, to be done for or furnished to the state or
21a department, board, commission
, or officer of the state is exempt from the
22requirements of ss. 16.705 and 16.75.
AB228,9,25
23(b) The department shall attempt to ensure that
5% 5 percent of the total
24amount expended under this section in each fiscal year is paid to minority
25businesses, as defined in s. 16.75 (3m) (a)
4.
AB228, s. 20
1Section
20. 16.87 (2) (c) of the statutes is created to read:
AB228,10,42
16.87
(2) (c) The department shall make efforts to ensure that a portion of the
3total amount expended under this section in each fiscal year is paid to disabled
4veteran-owned businesses.
AB228, s. 21
5Section
21. 18.16 (title) of the statutes is amended to read:
AB228,10,7
618.16 (title)
Minority financial advisers and investment firms; disabled
7veteran-owned financial advisers and investment firms.
AB228, s. 22
8Section
22. 18.16 (1) of the statutes is repealed and recreated to read:
AB228,10,99
18.16
(1) In this section:
AB228,10,1110
(a) "Disabled veteran-owned financial adviser" means a financial adviser
11certified by the department of commerce under s. 560.033 (3).
AB228,10,1312
(b) "Disabled veteran-owned investment firm" means an investment firm
13certified by the department of commerce under s. 560.033 (3).
AB228,10,1514
(c) "Minority financial adviser" means a financial adviser certified by the
15department of commerce under s. 560.036 (2).
AB228,10,1716
(d) "Minority investment firm" means an investment firm certified by the
17department of commerce under s. 560.036 (2).
AB228, s. 23
18Section
23. 18.16 (2) of the statutes is renumbered 18.16 (2) (a).
AB228, s. 24
19Section
24. 18.16 (2) (b) of the statutes is created to read: