AB727: Bill Text

LRB-2196/2

JTK:kmg:kjf

1999 - 2000 LEGISLATURE

1999 Assembly BILL 727

February 8, 2000 - Introduced by Representatives Kreuser, Porter, Musser, Steinbrink and Grothman. Referred to Committee on Government Operations.

AB727,1,3 An Act to create 16.855 (10m) (d) of the statutes; relating to: payment of bid preparation costs incurred by certain bidders for state construction work and making an appropriation.

Analysis by the Legislative Reference Bureau

Currently, with certain exceptions, the department of administration (DOA) must let state construction work by bid and must award contracts for that work to the lowest qualified responsible bidder. One exception permits DOA to award a contract to a minority business if the business submits a bid that is no more than 5% higher than the bid submitted by the lowest qualified responsible bidder. A "minority business" is a business that is performing a useful business function and that is at least 51% owned, controlled and actively managed by a minority group member or members who are U.S. citizens or persons who are lawfully admitted to the United States for permanent residence. A "minority group member" is a black, Hispanic, American Indian, Eskimo, Aleut, native Hawaiian, Asian Indian or person of Asian Pacific origin, as defined in rules of the department of commerce.

This bill provides that, if DOA awards a contract for state construction work to a minority business that submitted a higher bid than the bid submitted for that work by one or more other qualified responsible bidders, DOA must reimburse the qualified responsible bidder that submitted the lowest bid for the reasonable bid preparation costs incurred by that bidder, if the bidder submits to DOA a statement of the bidder's reasonable costs. Under the bill, any reimbursable costs that are paid by DOA are charged to the project budget for the construction project in connection with which the work was bid, thereby reducing funds available from the project budget for other expenses.

For further information see the state 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:

AB727, s. 1 Section 1. 16.855 (10m) (d) of the statutes is created to read:

AB727,2,12 16.855 (10m) (d) If the department awards a contract for construction work to a minority business that submitted a higher bid than the bid submitted for that work by one or more other qualified responsible bidders, the department shall provide written notification of the award to the qualified responsible bidder for the work who submitted the lowest bid. That bidder may then submit to the department a statement of the bidder's reasonable costs directly incurred by the bidder in preparing its bid, on a form prescribed by the department. The department may require verification of any cost identified by a bidder on its statement. From the appropriation under s. 20.505 (1) (kc), the department shall then pay to the bidder submitting the statement the reasonable costs incurred by the bidder in preparing its bid, as identified in the statement.

AB727,2,13 (End)