MPG/CMH/ARG:cjs:jf
2011 - 2012 LEGISLATURE
March 15, 2012 - Introduced by Representatives Fields, E. Coggs, Bernard
Schaber and Berceau, cosponsored by Senator Taylor. Referred to
Committee on Jobs, Economy and Small Business.
AB725,1,8
1An Act to amend 16.75 (1) (a) 1., 16.855 (1), 238.30 (7) (b) 2., 238.395 (2) (a) and
2238.395 (3) (a) 4.; and
to create 16.75 (3p), 16.75 (10r), 16.855 (10mm), 34.05
3(4), 59.83, 62.79, 238.14, 238.395 (1) (j), 238.395 (2) (b) 10. and 238.395 (2) (e)
44. of the statutes;
relating to: contracts between the state, a county with a
5population of 750,000 or more, or a 1st class city and financial institutions and
6devoting 10 percent of the state's, 20 percent of such a county's, and 40 percent
7of such a city's expenditures on economic development and housing programs
8and procurements to several areas in the city of Milwaukee.
Analysis by the Legislative Reference Bureau
Establishment of the Build Milwaukee Initiative Zones
This bill delineates four areas or zones in the city of Milwaukee (build
Milwaukee initiative zones) that are to be the subjects of targeted economic and
community development as set forth in the bill from July 1, 2012, until June 30, 2016,
at which time the bill's requirements except for reporting requirements, generally
cease. The build Milwaukee initiative zones are comprised of geographic areas
previously designated by ordinance by the common council of the city of Milwaukee.
Build Milwaukee initiative councils
The bill directs the common council of a 1st class city to establish a "build
Milwaukee initiative council" for each build Milwaukee initiative zone. That
common council is required to determine the number of members for each build
Milwaukee initiative council. The members of a build Milwaukee initiative council
serve three-year terms and are to be nominated by the mayor of the 1st class city and
appointed with the advice and consent of the city's common council. The bill requires
the build Milwaukee initiative councils to be strictly nonpartisan.
Under the bill, the common council determines the rules and procedures that
govern each build Milwaukee initiative council established by the common council.
Those rules and procedures must include all of the following:
1. The members of a build Milwaukee initiative council must be persons who
reside in, or are affiliated with a business entity, including any nonprofit corporation,
that is headquartered in, that council's build Milwaukee initiative zone.
2. The majority of a build Milwaukee initiative council's members must be
persons who reside in that council's build Milwaukee initiative zone.
3. Each build Milwaukee initiative council must include at least one clergy
member and at least two minority group members.
4. A vacancy on a build Milwaukee initiative council is to be filled in the same
manner as the original appointment to the council for the remainder of that
member's unexpired term, if any.
5. All build Milwaukee initiative council members must take and file the
official oath.
Goals and implementation
Under the bill, each build Milwaukee initiative council must do all of the
following with respect to that council's build Milwaukee initiative zone:
1. Establish clear and measurable goals for the implementation of economic
development and housing programs in the build Milwaukee initiative zone.
2. Coordinate with the Wisconsin Economic Development Corporation
(WEDC), the Wisconsin Housing and Economic Development Authority (WHEDA),
the Wisconsin Health and Educational Facilities Authority (WHEFA), a 1st class
city, and a county with a population of 750,000 or more to achieve the requirements
of the bill discussed below.
3. Coordinate with public and private economic development entities located
in any build Milwaukee initiative zone concerning economic development and
housing programs in the council's build Milwaukee initiative zone.
4. To the extent possible, ensure that any job created in the build Milwaukee
initiative zone is filled by a person who is qualified to perform that job and is a
resident of that zone.
5. To the extent possible, ensure that any job created in the build Milwaukee
initiative zone is filled by a person who is qualified to perform that job and is a
veteran.
6. To the extent possible, ensure that any job created in the build Milwaukee
initiative zone is filled by a person who is qualified to perform that job and has
completed a job training program at a job training or workforce development center
located in a 1st class city.
7. To the extent possible, coordinate the council's job placement efforts with
labor unions, community development corporations, and job training or workforce
development centers that are located in a 1st class city.
8. Encourage entrepreneurial activities and business growth in the build
Milwaukee initiative zone, including by coordinating with one or more business
incubators in that build Milwaukee initiative zone and with the Women's Business
Initiative Corporation and other community development corporations.
9. Encourage and support homeownership under housing programs directed
to the build Milwaukee initiative zone.
10. Attempt to ensure that any capital improvement project or other
development or redevelopment in the build Milwaukee initiative zone is carried out
in an environmentally sound manner.
11. Encourage the development of a wealth building center in the build
Milwaukee initiative zone that provides comprehensive housing counseling to
residents of that zone, encourages the development and retention of businesses in
that zone, provides assistance and advice concerning educational opportunities for
residents of that zone, and provides financial advice to residents of that zone.
Coordination of Economic Development and Housing Programs
Under current law, WEDC, WHEDA, and WHEFA are primarily responsible for
administering this state's economic development and housing programs.
Under the bill, WEDC, WHEDA, and WHEFA, each in coordination with the
others and in coordination with the appropriate county board and the build
Milwaukee initiative councils must attempt to ensure that at least 10 percent of the
total value of all loans, grants, tax benefits, and other financial assistance paid,
awarded, or otherwise provided under economic development programs and housing
programs by WEDC, WHEDA, and WHEFA is directed to economic development and
homeownership in the build Milwaukee initiative zones.
The bill also requires that the board in a county with a population of 750,000
or more coordinate with WEDC and the build Milwaukee initiative councils to
attempt to ensure that at least 20 percent of the total value of all loans, grants, and
other financial assistance paid, awarded, or otherwise provided by the county under
economic development programs and housing programs is directed to economic
development and homeownership in the build Milwaukee initiative zones.
Similarly, the bill requires the common council of a 1st class city to coordinate
with WEDC and the build Milwaukee initiative councils to attempt to ensure that
at least 40 percent of the total value of all loans, grants, and other financial
assistance paid, awarded, or otherwise provided by the city under economic
development programs and housing programs is directed to economic development
and homeownership in the build Milwaukee initiative zones.
Development Opportunity Zone
Under current law, specific areas in certain Wisconsin cities are designated as
development opportunity zones. Taxpayers that conduct business or intend to
conduct business in a development opportunity zone may receive certain tax benefits
after submitting a qualifying project plan in conjunction with the local governing
body of the city in which the development opportunity zone is located.
The bill creates a development opportunity zone in the city of Milwaukee that
is made up of the build Milwaukee initiative zones. That development opportunity
zone is effective for 48 months, beginning July 1, 2012. The total allowable tax
benefits for that development opportunity zone is $10,000,000. However, under the
bill, WEDC may extend the development opportunity zone for an additional 48
months and an additional $10,000,000 of total tax benefits if WEDC determines that
the extension will support economic development in the city of Milwaukee.
Public Purchasing and Contracts with Financial Institutions
Under current law, the Department of Administration (DOA) is authorized to
purchase, among other things, all necessary materials, supplies, equipment, and
contractual services for all state agencies. DOA may delegate to a state agency the
authority to make purchases for that agency. However, in making such a delegation,
DOA must require the agency to adhere to all requirements imposed on DOA with
respect to such purchases. The legislative and judicial branches make their own
purchases. State purchasing contracts are generally required to be awarded based
on the lowest responsible bid or most advantageous proposal.
Also under current law, the governing body of a county or city, or the purchasing
agent appointed by the county's or city's governing body, is generally responsible for
making purchases for the county or city.
Purchases directed to businesses in the build Milwaukee initiative zones
Under the bill, DOA and the legislative and judicial branches must attempt to
ensure that at least 10 percent of the purchases made by DOA and the legislative and
judicial branches in each fiscal year is paid to businesses that are located in a build
Milwaukee initiative zone. Under the bill, DOA may purchase materials, supplies,
equipment, and contractual services from any business located in a build Milwaukee
initiative zone that submits a qualified responsible competitive bid that is no more
than 5 percent higher than the apparent low bid or competitive proposal that is no
more than 5 percent higher than the most advantageous proposal.
Also under the bill, the board of a county with a population of 750,000 or more
must attempt to ensure that at least 20 percent of the total amount expended by that
county in each fiscal year for any materials, supplies, equipment, or services for the
various county offices is paid to businesses located in a build Milwaukee initiative
zone.
Similarly, the bill requires the common council of a 1st class city to attempt to
ensure that at least 40 percent of the total amount expended by the city in each fiscal
year for any materials, supplies, equipment, or services for the various city offices
is paid to businesses located in a build Milwaukee initiative zone.
Preference for qualifying financial institutions
Also under the bill, before DOA, the board of a county with a population of
750,000 or more, or the common council of a 1st class city enters into a contract with
a financial institution for the deposit of public moneys with the financial institution,
DOA, the county board, or the common council must consider whether the financial
institution meets the criteria listed below. DOA, the county board, or the common
council may give preference for such a contract if the financial institution meets all
of the following criteria:
1. The financial institution has, in the preceding year, made loans to persons
located in a build Milwaukee initiative zone. DOA, the county board, or the common
council is required to take into account the amount of those loans.
2. The financial institution agrees to increase its lending activity to persons
located in a build Milwaukee initiative zone and provides to DOA, the county board,
or the common council, as appropriate, a plan to do so that includes the financial
institution's proposal for using the deposits of DOA, the county board, or the common
council to increase lending activity to persons located in a build Milwaukee initiative
zone, particularly with respect to loans that encourage or support homeownership
and business activity in the build Milwaukee initiative zone.
3. The financial institution has, in its most recent evaluation under the
Community Reinvestment Act of 1977, received a rating of outstanding or
satisfactory.
Reporting Requirements
Under the bill, annually, no later than March 1, WEDC, the board of a county
with a population of 750,000 or more, and the common council of a 1st class city must
each submit to the governor and the legislature, and make available to the public,
a report that details all of the following:
1. For each build Milwaukee initiative zone, a list and description, including
amounts, of all loans, grants, and other financial assistance that WEDC, WHEDA,
and WHEFA, the county, or the city directed to economic development and
homeownership in that build Milwaukee initiative zone during the preceding year.
2. An accounting of the total value of all loans, grants, and other financial
assistance that WEDC, WHEDA, and WHEFA, the county, or the city directed to
economic development and homeownership in the build Milwaukee initiative zones
during the preceding year.
3. An accounting of the total value of all loans, grants, and other financial
assistance that WEDC, WHEDA, and WHEFA, the county, or the city paid, awarded,
or otherwise provided under economic development programs and housing programs
during the preceding year.
Additionally, a county and a city submitting such a report must include in that
report an accounting of the purchases the county or the city, as appropriate, made
from businesses located in a build Milwaukee initiative zone.
Similarly, the bill requires DOA to maintain and annually publish data, and
prepare and submit a report to the governor and to the legislature, on state
purchases from businesses located in a build Milwaukee initiative zone and on the
state's progress toward achieving compliance with the bill's requirements regarding
such purchases.
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:
AB725, s. 1
1Section
1. 16.75 (1) (a) 1. of the statutes is amended to read:
AB725,6,102
16.75
(1) (a) 1. All orders awarded or contracts made by the department for all
3materials, supplies, equipment, and contractual services to be provided to any
4agency, except as otherwise provided in par. (c)
and, subs. (2), (2g), (2m), (3m),
(3p), 5(3t), (6), (7), (8), (9), (10e),
and (10m)
, and (10r), and ss. 16.73 (4) (a), 16.751, 16.754,
616.964 (8), 50.05 (7) (f), 153.05 (2m) (a), and 287.15 (7), shall be awarded to the lowest
7responsible bidder, taking into consideration life cycle cost estimates under sub.
8(1m), when appropriate, the location of the agency, the quantities of the articles to
9be supplied, their conformity with the specifications, and the purposes for which they
10are required and the date of delivery.
AB725, s. 2
11Section
2. 16.75 (3p) of the statutes is created to read:
AB725,6,1312
16.75
(3p) (a) In this subsection, "build Milwaukee initiative zone" means a
13geographic area under s. 238.14 (2) (a), (b), (c), or (d).
AB725,6,1714
(b) 1. The department and any agency making purchases under s. 16.74 shall
15attempt to ensure that at least 10 percent of the total amount expended under this
16subchapter in each fiscal year is paid to businesses located in any of the build
17Milwaukee initiative zones.
AB725,6,2218
2. Except as provided in sub. (7), the department may purchase materials,
19supplies, equipment, and contractual services from any business located in a build
20Milwaukee initiative zone that submits a qualified responsible competitive bid that
21is no more than 5 percent higher than the apparent low bid or competitive proposal
22that is no more than 5 percent higher than the most advantageous proposal.
AB725,7,223
(c) The department shall maintain and annually publish data, and prepare and
24submit a report to the governor and to the chief clerk of each house of the legislature
25for distribution to the appropriate standing committees under s. 13.172 (3), on state
1purchases from businesses located in a build Milwaukee initiative zone and on the
2state's progress toward achieving compliance with par. (b) 1.
AB725,7,33
(d) This subsection does not apply before July 1, 2012, nor after June 30, 2016.
AB725, s. 3
4Section
3. 16.75 (10r) of the statutes is created to read:
AB725,7,55
16.75
(10r) (a) In this subsection:
AB725,7,76
1. "Build Milwaukee initiative zone" means a geographic area under s. 238.14
7(2) (a), (b), (c), or (d).
AB725,7,98
2. "Financial institution" means an insured depository institution, as defined
9in
12 USC 1813 (c) (2).
AB725,7,1410
(b) Before entering into a contract with a financial institution for the deposit
11of state moneys with the financial institution, the department shall consider
12whether the financial institution meets any of the following criteria and may give
13preference in entering into such contracts to a financial institution that meets all of
14the following criteria:
AB725,7,1815
1. The financial institution has, in the preceding year, made loans to persons
16located in a build Milwaukee initiative zone. The department shall consider the
17amount of the financial institution's lending activity in the build Milwaukee
18initiative zones in providing any preference under this paragraph.
AB725,7,2419
2. The financial institution agrees to increase its lending activity to persons
20located in a build Milwaukee initiative zone and provides to the department a plan
21to do so. That plan shall include the financial institution's proposal for using the
22department's deposits to increase lending activity to persons located in a build
23Milwaukee initiative zone, particularly with respect to loans that encourage or
24support homeownership and business activity.
AB725,8,3
13. The financial institution has, in its most recent evaluation under the
2Community Reinvestment Act of 1977, received a rating as specified in
12 USC 2906 3(b) of outstanding or satisfactory.
AB725,8,44
(c) This subsection does not apply before July 1, 2012, nor after June 30, 2016.
AB725,8,177
16.855
(1) The department shall let by contract to the lowest qualified
8responsible bidder all construction work when the estimated construction cost of the
9project exceeds $50,000, except for construction work authorized under s. 16.858 and
10except as provided in sub. (10m)
or (10mm) or s. 13.48 (19). If a bidder is not a
11Wisconsin firm and the department determines that the state, foreign nation or
12subdivision thereof in which the bidder is domiciled grants a preference to bidders
13domiciled in that state, nation or subdivision in making governmental purchases,
14the department shall give a preference over that bidder to Wisconsin firms, if any,
15when awarding the contract, in the absence of compelling reasons to the contrary.
16The department may enter into agreements with states, foreign nations and
17subdivisions thereof for the purpose of implementing this subsection.
AB725, s. 5
18Section
5. 16.855 (10mm) of the statutes is created to read: