Amendment AU7 AA25-ASA1-AB1

MG/MD/CH/ZW:all

August 2017 Special Session

2017 - 2018 LEGISLATURE

ASSEMBLY AMENDMENT 25, TO ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 1

August 17, 2017 - Offered by Representatives Sinicki, Ohnstad, Stuck, Fields, Crowley, Barca, Billings, Hebl, Hesselbein, Kessler, Mason, Shankland, Spreitzer, Vruwink, Zamarripa, Zepnick, Kolste and Young.

AB1-ASA1-AA25,1,1 At the locations indicated, amend the substitute amendment as follows:

AB1-ASA1-AA25,1,3 1. Page 2, line 10: delete “and making appropriations" and substitute “ making appropriations; and providing a penalty".

AB1-ASA1-AA25,1,4 2. Page 2, line 10: after “authority;" insert “procurement for public contracts;".

AB1-ASA1-AA25,1,5 3. Page 10, line 14: after that line insert:

AB1-ASA1-AA25,1,6 “ Section 2p. 16.855 (1q) of the statutes is created to read:

AB1-ASA1-AA25,1,8 16.855 (1q) (a) 1. A bid submitted by a qualified responsible bidder shall be considered as if the bid amount submitted was reduced as follows:

AB1-ASA1-AA25,1,10 a. By 1 percent if the bidder participates in an apprenticeship program under ch. 106 and ch. DWD 295, Wis. Adm. Code, or under 29 USC 50 and 29 CFR part 29.

AB1-ASA1-AA25,2,3 b. By 1 percent if the bidder contributes at least 75 percent of the premium cost for individual health insurance coverage for each employee that is to perform work under the contract.

AB1-ASA1-AA25,2,6 c. By 1 percent if the bidder submits a written plan meeting the requirements of s. 103.503 (3) and proof that at least 5 percent of the employees that are to perform work under the contract are subject to random annual drug and alcohol testing.

AB1-ASA1-AA25,2,7 d. By 1 percent if the bidder is a tier I or tier II participant under s. 299.83.

AB1-ASA1-AA25,2,10 2. The department may request and receive information from the department of workforce development or the department of natural resources when determining if a bidder qualifies for reduction under subd. 1.

AB1-ASA1-AA25,2,11 (b) 1. In this paragraph:

AB1-ASA1-AA25,2,14 a. “First tier subcontractor” means a person who is awarded a subcontract directly by the bidder for the purposes of acquiring supplies or services for performance of the contract.

AB1-ASA1-AA25,2,16 b. “Resident” means a person domiciled in Wisconsin for not less than 12 consecutive months preceding the submission of a bid.

AB1-ASA1-AA25,2,18 2. A submitted bid by a qualified responsible bidder shall be considered as if the bid amount submitted was reduced as follows:

AB1-ASA1-AA25,2,20 a. By 6 percent if at least 75 percent of the bidder's employees performing work on the contract are residents.

AB1-ASA1-AA25,2,22 b. By 3 percent if at least 50 percent but less than 75 percent of the bidder's employees performing work on the contract are residents.

AB1-ASA1-AA25,2,24 c. By 1 percent if at least 25 percent but less than 50 percent of the bidder's employees performing work on the contract are residents.

AB1-ASA1-AA25,3,5 3. The reduction under subd. 2. may not be applied unless all first tier subcontractors working under the bidder also meet the criteria under subd. 2. a., b., or c., whichever is appropriate, unless the first tier contractor demonstrates that there is a lack of journeymen in Wisconsin available and qualified to perform the work required by the subcontract.

AB1-ASA1-AA25,3,10 (c) A bid reduction under this subsection may not be applied if the reduction would jeopardize the receipt of federal funds or would violate federal law. If a bid reduction under par. (b) is prohibited under this paragraph, the remaining bid reductions shall be increased proportionately so that the the available bid reductions total 10 percent.

AB1-ASA1-AA25,3,11 (d) The department shall do all of the following:

AB1-ASA1-AA25,3,14 1. Enforce this subsection and enforce conforming bid reductions under ss. 59.52 (29) (a), 60.47 (3), 62.15 (1), 66.0901 (1m) (a) 3., 84.06 (2) (a), 85.077 (1), and 86.31 (2) (b).

AB1-ASA1-AA25,3,15 2. Promulgate rules necessary to do all of the following:

AB1-ASA1-AA25,3,18 a. Establish criteria and procedures for determining if bidders are eligible for bid reductions under this subsection and ss. 59.52 (29) (a), 60.47 (3), 62.15 (1), 66.0901 (1m) (a) 3., 84.06 (2) (a), 85.077 (1), and 86.31 (2) (b).

AB1-ASA1-AA25,3,21 b. Establish procedures for bidders to certify their eligibility for bid reductions under this subsection and ss. 59.52 (29) (a), 60.47 (3), 62.15 (1), 66.0901 (1m) (a) 3., 84.06 (2) (a), 85.077 (1), and 86.31 (2) (b).

AB1-ASA1-AA25,3,24 c. Establish procedures to audit bids that make a claim for bid reductions under this subsection or s. 59.52 (29) (a), 60.47 (3), 62.15 (1), 66.0901 (1m) (a) 3., 84.06 (2) (a), 85.077 (1), or 86.31 (2) (b).

AB1-ASA1-AA25,4,7 3. Monitor awards that are based on bid reductions under this subsection or s. 59.52 (29) (a), 60.47 (3), 62.15 (1), 66.0901 (1m) (a) 3., 84.06 (2) (a), 85.077 (1), or 86.31 (2) (b) to ensure that the person awarded the contract continues to meet the criteria for the bid reduction until the completion of the contract. If the department determines that the person no longer meets the criteria for the bid reduction, the contract is void and the department shall assess a penalty against the person of not more than 10 percent of the person's bid on the project.”.

AB1-ASA1-AA25,4,8 4. Page 10, line 19: delete lines 19 and 20 and substitute: - See PDF for table

AB1-ASA1-AA25,4,9 5. Page 13, line 18: after that line insert:

AB1-ASA1-AA25,4,10 “ Section 14p. 59.52 (29) (a) of the statutes is amended to read:

AB1-ASA1-AA25,5,6 59.52 (29) (a) All public work, including any contract for the construction, repair, remodeling or improvement of any public work, building, or furnishing of supplies or material of any kind where the estimated cost of such work will exceed $25,000 shall be let by contract to the lowest responsible bidder. Each bid submitted by a responsible bidder shall be considered as if the bid amount submitted was reduced as provided under s. 16.855 (1q). Any public work, the estimated cost of which does not exceed $25,000, shall be let as the board may direct. If the estimated cost of any public work is between $5,000 and $25,000, the board shall give a class 1 notice under ch. 985 before it contracts for the work or shall contract with a person qualified as a bidder under s. 66.0901 (2). A contract, the estimated cost of which exceeds $25,000, shall be let and entered into under s. 66.0901, except that the board may by a three-fourths vote of all the members entitled to a seat provide that any class of public work or any part thereof may be done directly by the county without submitting the same for bids. This subsection does not apply to public construction if the materials for such a project are donated or if the labor for such a project is provided by volunteers. This subsection does not apply to highway contracts which the county highway committee or the county highway commissioner is authorized by law to let or make.

AB1-ASA1-AA25,14r Section 14r. 60.47 (3) of the statutes is amended to read:

AB1-ASA1-AA25,5,12 60.47 (3) Contracts to lowest responsible bidder. The town board shall let a public contract for which advertising for proposals is required under sub. (2) (b) to the lowest responsible bidder. Each bid submitted by a responsible bidder shall be considered as if the bid amount submitted was reduced as provided under s. 16.855 (1q). Section 66.0901 applies to public contracts let under sub. (2) (b).”.

AB1-ASA1-AA25,5,13 6. Page 14, line 8: after that line insert:

AB1-ASA1-AA25,5,14 “ Section 16p. 62.15 (1) of the statutes is amended to read:

AB1-ASA1-AA25,6,3 62.15 (1) Contracts; how let; exception for donated materials and labor. All public construction, the estimated cost of which exceeds $25,000, shall be let by contract to the lowest responsible bidder; all other public construction shall be let as the council may direct. If required to be let by contract, each bid submitted by a responsible bidder shall be considered as if the bid amount submitted was reduced as provided under s. 16.855 (1q). If the estimated cost of any public construction exceeds $5,000 but is not greater than $25,000, the board of public works shall give a class 1 notice, under ch. 985, of the proposed construction before the contract for the construction is executed. This provision does not apply to public construction if the materials for such a project are donated or if the labor for such a project is provided by volunteers. The council may also by a vote of three-fourths of all the members-elect provide by ordinance that any class of public construction or any part thereof may be done directly by the city without submitting the same for bids.”.

AB1-ASA1-AA25,6,4 7. Page 15, line 24: after that line insert:

AB1-ASA1-AA25,6,5 “ Section 18p. 66.0901 (1m) (a) 3. of the statutes is created to read:

AB1-ASA1-AA25,6,8 66.0901 (1m) (a) 3. Each bid submitted by a responsible bidder shall be considered as if the bid amount submitted was reduced as provided under s. 16.855 (1q).”.

AB1-ASA1-AA25,6,11 8. Page 22, line 7: after “$30,000" insert “, who is required to file a Wisconsin income tax return for the same taxable year for which the employee's employer claims a credit under par. (b),".

AB1-ASA1-AA25,6,14 9. Page 26, line 11: after “$30,000" insert “, who is required to file a Wisconsin income tax return for the same taxable year for which the employee's employer claims a credit under par. (b),".

AB1-ASA1-AA25,6,15 10. Page 30, line 12: after that line insert:

AB1-ASA1-AA25,6,16 “ Section 35p. 84.06 (2) (a) of the statutes is amended to read:

AB1-ASA1-AA25,7,14 84.06 (2) (a) All such highway improvements shall be executed by contract based on bids unless the department finds that another method as provided in sub. (3) or (4) would be more feasible and advantageous. Bids shall be advertised for in the manner determined by the department. Except as provided in s. 84.075, the contract shall be awarded to the lowest competent and responsible bidder as determined by the department. Each bid submitted by a competent and responsible bidder shall be considered as if the bid amount submitted was reduced as provided under s. 16.855 (1q). If the bid of the lowest competent bidder is determined by the department to be in excess of the estimated reasonable value of the work or not in the public interest, all bids may be rejected. The department shall, so far as reasonable, follow uniform methods of advertising for bids and may prescribe and require uniform forms of bids and contracts. Except as provided in par. (b), the secretary shall enter into the contract on behalf of the state. Every such contract is exempted from ss. 16.70 to 16.75, 16.755 to 16.82, 16.87 and 16.89, but ss. 16.528, 16.752, 16.753, and 16.754 apply to the contract. Any such contract involving an expenditure of $1,000 or more shall not be valid until approved by the governor. The secretary may require the attorney general to examine any contract and any bond submitted in connection with the contract and report on its sufficiency of form and execution. The bond required by s. 779.14 (1m) is exempt from approval by the governor and shall be subject to approval by the secretary. This subsection also applies to contracts with private contractors based on bids for maintenance under s. 84.07.”.

AB1-ASA1-AA25,7,15 11. Page 30, line 17: after that line insert:

AB1-ASA1-AA25,7,16 “ Section 36d. 85.077 (1) of the statutes is amended to read:

AB1-ASA1-AA25,7,23 85.077 (1) Except as provided in subs. (2) and (4), if a project involving the construction, rehabilitation, improvement, demolition, or repair of rail property or rail property improvements is funded in any part with public funds, the department or the recipient of the public funds shall let the project by contract on the basis of competitive bids and shall award the contract to the lowest responsible bidder. Each bid submitted by a responsible bidder shall be considered as if the bid amount submitted was reduced as provided under s. 16.855 (1q).

AB1-ASA1-AA25,36g Section 36g. 86.31 (2) (b) of the statutes is amended to read:

AB1-ASA1-AA25,8,9 86.31 (2) (b) Except as provided in par. (d), improvements for highway construction projects funded under the program shall be under contracts. Such contracts shall be awarded on the basis of competitive bids and shall be awarded to the lowest responsible bidder. Each bid submitted by a responsible bidder shall be considered as if the bid amount submitted was reduced as provided under s. 16.855 (1q). If a city or village does not receive a responsible bid for an improvement, the city or village may contract with a county for the improvement. Subject to s. 59.52 (30), a town may contract with a county for the improvement subject to the criteria and procedures promulgated as rules under sub. (6) (h).”.

AB1-ASA1-AA25,8,12 12. Page 30, line 20: delete “(bg) in the 2019-21 fiscal biennium," and substitute “(bg), in the 2017-19 fiscal biennium and in each fiscal biennium thereafter,".

AB1-ASA1-AA25,8,16 13. Page 36, line 2: after “zone." insert “The corporation may not certify a business under this subsection unless the business executes a contract with the corporation that requires the business to expend during the contract term at least $1,250,000,000 on the products and services of businesses based in this state.".

AB1-ASA1-AA25,8,17 14. Page 36, line 15: after that line insert:

AB1-ASA1-AA25,8,18 “(3u) Minimum wage and labor peace in the zone. (a) In this subsection:

AB1-ASA1-AA25,8,20 1. “Claimant” means a person who is certified to claim tax benefits under sub. (3).

AB1-ASA1-AA25,8,23 2. “Claimant contracted employer” means an employer that employs employees as a result of an agreement with a claimant to provide goods or services to the claimant and that employs employees within 50 miles of the zone.

AB1-ASA1-AA25,9,2 2e. “Covered employer” means a claimant, zone employer, or claimant contracted employer.

AB1-ASA1-AA25,9,3 2m. “Department” means the department of workforce development.

AB1-ASA1-AA25,9,6 3. “Economic action” means picketing, work stoppage, strike, boycott, or other adverse action against a covered employer regarding employees of the covered employer.

AB1-ASA1-AA25,9,7 4. “Employee” has the meaning given in s. 104.01 (2).

AB1-ASA1-AA25,9,8 4e. “Employer” has the meaning given in s. 104.01 (3).

AB1-ASA1-AA25,9,11 4m. “Labor organization” means an organization of any kind which exists for the purpose, in whole or in part, of dealing with employers concerning wages, hours of employment, conditions of work, or grievances.

AB1-ASA1-AA25,9,15 4s. “Labor peace agreement” means a written agreement between an employer and a labor organization that contains at a minimum a provision requiring forbearance by the labor organization of any economic action against any covered employer.

AB1-ASA1-AA25,9,18 5. “Rate of inflation” means the rate of inflation determined by the federal bureau of labor statistics for the metropolitan statistical area in which the zone exists.

AB1-ASA1-AA25,9,19 6. “Wage” has the meaning given in s. 104.01 (8).

AB1-ASA1-AA25,9,20 7. “Zone” means the zone designated under sub. (1m).

AB1-ASA1-AA25,9,22 8. “Zone employer” means an employer that employs employees within the boundaries of the zone.

AB1-ASA1-AA25,9,24 (b) 1. Every wage paid or agreed to be paid by a claimant to any employee shall be not less than the minimum wage established under par. (c).

AB1-ASA1-AA25,10,2 2. Every wage paid or agreed to be paid by any zone employer to any employee shall be not less than the minimum wage established under par. (c).

AB1-ASA1-AA25,10,4 3. Every wage paid or agreed to be paid by any claimant contracted employer to any employee shall be not less than the minimum wage established under par. (c).

AB1-ASA1-AA25,10,9 4. A claimant, a zone employer, or a claimant contracted employer paying, offering to pay, or agreeing to pay any employee a wage lower or less in value than the applicable minimum wage established under par. (c) is guilty of a violation of this chapter as provided in s. 103.005 (11) and is subject to the penalties provided in s. 103.005 (12).

AB1-ASA1-AA25,10,11 (c) 1. The minimum wage shall be not less than $15 per hour through the last day of February 2020.

AB1-ASA1-AA25,10,15 2. On April 1, 2020, the minimum wage shall be not less than an amount determined by the department by multiplying $15 per hour by the rate of inflation for the immediately preceding year. The department shall publish the wage calculated under this subdivision no later than March 1, 2020.

AB1-ASA1-AA25,10,20 3. On April 1, 2021, and on April 1 of each year thereafter, the minimum wage shall be not less than an amount determined by the department by multiplying the minimum wage of the immediately preceding 12 months by the rate of inflation for the immediately preceding year. The department shall publish the wage calculated under this subdivision no later than March 1 of each year.

AB1-ASA1-AA25,10,24 (d) 1. Each claimant, zone employer, and claimant contracted employer shall keep a record of the name and address of each of its employees, the hours of employment and wages of each employee, the occupation and classification of each employee, and such other records pertaining to ability as the department requires.

AB1-ASA1-AA25,11,2 2. The records under this paragraph shall be submitted to the department every 3 months as follows:

AB1-ASA1-AA25,11,4 a. On May 1 regarding any employment of employees from January 1 to March 31 of that year.

AB1-ASA1-AA25,11,6 b. On August 1 regarding any employment of employees from April 1 to June 30 of that year.