2013 - 2014 LEGISLATURE
March 13, 2013 - Introduced by Senators Hansen,
Vinehout, C. Larson, Miller,
Erpenbach, Shilling, Lehman, Risser, Harris and Wirch, cosponsored by
Representatives Clark, Genrich, Barnes, Barca, Mason, Danou, Ringhand,
Bernard Schaber, Bewley, Berceau, Kahl, Pope, Sargent, Jorgensen,
Riemer, Hebl, C. Taylor, Ohnstad, Billings, Wright, Johnson and Richards.
Referred to Committee on Government Operations, Public Works, and
1An Act to renumber
16.754 (1) (a) and 16.754 (2); to amend
16.72 (2) (c), 16.754 2
(title), 16.754 (2) (title) and 16.754 (3) (intro.); and to create
16.754 (1) (am), 3
16.754 (2) (a), 16.754 (2m) and 66.0145 of the statutes; relating to: state
4procurement of products and services from businesses located in this state and
5setting a goal for local government to purchase a certain percentage of products
6and services from businesses located in this state.
Analysis by the Legislative Reference Bureau
Current law generally authorizes the Department of Administration (DOA) to
purchase, or delegate the authority to purchase, all necessary materials and
contractual services for all state agencies. With some exceptions, orders or contracts
must be awarded to the lowest bidder. This bill creates an exception to require DOA
and any agency making purchases to attempt to ensure that at least 20 percent of
the total amount expended for such procurement in each fiscal year is from
Wisconsin-based businesses and that, in any fiscal year, the percentage of the total
amount expended from Wisconsin-based businesses will not be lower than it was in
the previous fiscal year. To measure compliance with this exception, this bill requires
DOA to collect data from a person who bids for a contract regarding the person's
principal place of business and make the information publicly available on its
This bill also sets a goal that at least 20 percent of the aggregate value of the
annual purchases of products and services by a local governmental unit (which
includes cities, villages, towns, counties, and special purpose districts, which include
schools and technical college districts) will be from Wisconsin-based businesses. A
further goal is that, in any year, the percentage of the aggregate value of routine
purchases of products and services from Wisconsin-based businesses will not be
lower than it was in the previous year. The bill also requires a local governmental
unit to annually evaluate its performance in reaching these goals, and make the
evaluation available to the public, but the political subdivision's governing body may
vote to opt out of these requirements.
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:
16.72 (2) (c) of the statutes is amended to read:
(c) To the extent possible, the department shall write specifications 3
so as to permit the purchase of materials manufactured in the United States, as 4
defined in s. 16.754 (1) (b), or the purchase of local products or services, as defined
5in s. 66.0145 (1) (b)
16.754 (title) of the statutes is amended to read:
(title) Preference for local products and services and
16.754 (1) (a) of the statutes is renumbered 16.754 (1) (ar).
16.754 (1) (am) of the statutes is created to read:
(am) "Local product or service" has the meaning given in s. 66.0145 12
16.754 (2) (title) of the statutes is amended to read:
(title) Purchase preference preferences.
16.754 (2) of the statutes is renumbered 16.754 (2) (b).
16.754 (2) (a) of the statutes is created to read:
(a) The department, any other designated purchasing agent under 2
s. 16.71 (1), and any agency making purchases under s. 16.74 shall attempt to ensure 3
that at least 20 percent of the total amount expended under this subchapter in each 4
fiscal year is for local products or services and it shall be a further goal that the 5
percentage of the total amount expended in any fiscal year for local products or 6
services will not be lower than the percentage of the total amount expended in the 7
previous fiscal year for local products or services.
16.754 (2m) of the statutes is created to read:
16.754 (2m) Data.
For purposes of measuring compliance with sub. (2) (a), the 10
department shall collect from a person who responds to a proposal or submits a bid 11
for a contract information regarding the person's principal place of business. The 12
department shall make available to the public on its Internet site the data it collects 13
under this subsection as well as an annual evaluation of how well the department, 14
its designated purchasing agents, and any agency making purchases under s. 16.74 15
are meeting the goal under sub. (2) (a).
16.754 (3) (intro.) of the statutes is amended to read:
16.754 (3) Exemptions.
(intro.) Subsection (2) (b)
does not apply if the 18
materials are purchased for the purpose of commercial resale or for the purpose of 19
use in the production of goods for commercial sale. Subsection (2)
does not apply 20
to the purchase of stationery and printing materials. Subsection (2) (b)
does not 21
apply if the department determines, under s. 16.75 (1) (a) 2., that the foreign nation 22
or subdivision thereof in which the vendor is domiciled does not give preference to 23
vendors domiciled in that nation or subdivision in making governmental purchases. 24
Subsection (2) (b)
does not apply if the department or other person having 25
contracting authority in respect to the purchase determines that:
66.0145 of the statutes is created to read:
266.0145 Purchases of Wisconsin goods and services. (1) Definitions.
(a) "Local governmental unit" has the meaning given in s. 66.0135 (1) (c).
(b) "Local product or service" means a product or service that is purchased from 6
a person whose principal place of business is located in this state.
7(2) Purchasing goals.
(a) It shall be a goal of a local governmental unit that, 8
annually, at least 20 percent of the aggregate value of purchases of products and 9
services by that local governmental unit shall be local products or services, and it 10
shall be a further goal of the local governmental unit that the percentage of the 11
aggregate value of routine purchases of products and services in any year that are 12
local products and services will not be lower than the aggregate value of such routine 13
purchases in the previous year.
(b) A local governmental unit shall evaluate its performance in reaching the 15
goals specified in par. (a) and shall annually make this evaluation available to the 16
public, except that these requirements do not apply to any local governmental unit 17
whose governing body enacts an ordinance, adopts a resolution, or takes other official 18
action stating that it chooses not to conduct an evaluation of its performance in 19
reaching the goals.
(1) The treatment of section 66.0145 of the statutes and the creation of section 22
16.754 (2) (a) of the statutes first apply to purchases made in the fiscal year that 23
begins in the year after this subsection takes effect.
(2) The treatment of section 16.754 (2m) of the statutes first applies to 2
responses made and bids submitted in the fiscal year that begins in the year after 3
this subsection takes effect.