AB811: Bill Text

2007 - 2008 LEGISLATURE

2007 Assembly BILL 811

February 15, 2008 - Introduced by Representatives Moulton, Van Roy, Berceau, Mursau, Kaufert, Gunderson, Molepske, Hahn, Musser, Albers, Townsend, Honadel and Vukmir, cosponsored by Senators Lassa, S. Fitzgerald, Coggs, Cowles and Olsen. Referred to Committee on Small Business.

AB811,1,9 An Act to renumber and amend 16.75 (3m) (a), 16.75 (3m) (b), 16.75 (3m) (c) 4., 16.75 (3m) (c) 5., 16.75 (4) (a), 16.75 (4) (b), 16.75 (4) (c), 16.75 (4) (d) and 16.755 (5); to amend 13.48 (29), 15.107 (2), 16.701 (1), 16.75 (3m) (c) 1., 2. and 3., 16.755 (intro.), (1) and (4), 16.855 (1), 16.855 (22) and 560.035 (1) (b); and to create 16.75 (3m) (a) 1., 16.75 (3m) (a) 4., 16.75 (3m) (b) 2. and 3., 16.75 (3m) (c) 4. b., 16.75 (3m) (c) 5. b., 16.755 (4m), 16.755 (5) (a), (b), (c), (d) and (e), 16.855 (10L) and 560.0345 of the statutes; relating to: awarding procurements to woman-owned businesses, veteran-owned businesses, minority businesses, and small businesses.

Analysis by the Legislative Reference Bureau

Currently, minority-owned businesses that are certified by the Department of 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 certain 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. This bill expands the definition of minority-owned businesses for this purpose to include a business that is owned by a person with a disability.

This bill also creates similar preferences, under which state agencies must attempt to ensure that, of the total amount expended for state procurements in each fiscal year, 25 percent is paid to small businesses, 5 percent is paid to woman-owned businesses certified by the Department of Commerce, and 5 percent is paid to veteran-owned businesses certified by the Department of Veterans Affairs. Under the bill, with certain limited exceptions, the current authorization to accept bids or proposals submitted by minority-owned businesses that are no more than 5 percent higher than the apparent low bid or most advantageous proposal is extended to apply to bids or proposals submitted by small businesses, woman-owned businesses, and veteran-owned businesses.

Under current law, in the Department of Administration, there is a Counsel on Small Business, Veteran-Owned Business and Minority Business Opportunities. This bill adds woman-owned business owners to the council and adds other requirements to its duties including the promotion of locally produced products.

This bill also requires the Department of Commerce to maintain a Web site to help agencies making purchases comply with the procurement preferences by listing veteran-owned businesses, woman-owned businesses, minority businesses, and small businesses, the locations of each business, and the products and services offered by each business.

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:

AB811, s. 1 Section 1. 13.48 (29) of the statutes is amended to read:

AB811,2,5 13.48 (29) Small projects. Except as otherwise required under s. 16.855 (10L) or (10m), the building commission may prescribe simplified policies and procedures to be used in lieu of the procedures provided in s. 16.855 for any project that does not require prior approval of the building commission under sub. (10) (a).

AB811, s. 2 Section 2. 15.107 (2) of the statutes is amended to read:

AB811,3,16 15.107 (2) Council on small business, veteran-owned business, woman-owned business, and minority business opportunities. There is created in the department of administration a council on small business, veteran-owned business , woman-owned business, and minority business opportunities consisting of 13 7 members, appointed nominated by the secretary of administration governor, and with the advise and consent of the senate appointed, for 3-year terms, with representation as follows: at least 2 shall be owners or employees of small businesses at least 51% owned by one or more members of a racial minority group; at least one shall be an owner or employee of a small business at least 51% owned by one or more handicapped persons; at least one shall be an owner or employee of a small business operated on a nonprofit basis for the rehabilitation of disabled persons; at least 2, as defined in s. 16.75 (3m) (a) 2.; one shall be owners or employees an owner of a veteran-owned businesses business, as defined in s. 16.75 (4) (d); at least one shall be a representative of the department of commerce; and at least one shall be a consumer member (3m) (a) 3.; 2 shall be owners of woman-owned businesses, as defined in s. 16.75 (3m) (a) 4.; and 2 shall be owners of minority businesses, as defined in s. 16.75 (3m) (a) 1m. No member may serve for more than 2 consecutive full terms. The secretary of administration, or a department employee who is the secretary's designee, shall serve as the council's nonvoting secretary.

AB811, s. 3 Section 3. 16.701 (1) of the statutes is amended to read:

AB811,3,24 16.701 (1) The department may shall provide a subscription service containing current information of interest to prospective vendors concerning state procurement opportunities. If the department provides the service, the department and shall assist small businesses, as defined in s. 16.75 (4) (c) (3m) (a) 2., who are prospective vendors in accessing and using the service by providing facilities or services to the businesses. The department may charge a fee for any such service. The department shall prescribe the amount of any fee by rule.

AB811, s. 4 Section 4. 16.75 (3m) (a) of the statutes is renumbered 16.75 (3m) (a) (intro.) and amended to read:

AB811,4,3 16.75 (3m) (a) (intro.) In this subsection, "minority:

AB811,4,6 1m. "Minority business" means a business certified by the department of commerce under s. 560.036 (2) or a business that is at least 51 percent owned by a person with a disability.

AB811, s. 5 Section 5. 16.75 (3m) (a) 1. of the statutes is created to read:

AB811,4,9 16.75 (3m) (a) 1. "Designated business" means a minority business, small business, woman-owned business, or veteran-owned business.

AB811, s. 6 Section 6. 16.75 (3m) (a) 4. of the statutes is created to read:

AB811,4,12 16.75 (3m) (a) 4. "Woman-owned business" means a business certified by the department of commerce under s. 560.035.

AB811, s. 7 Section 7. 16.75 (3m) (b) of the statutes is renumbered 16.75 (3m) (b) 1. and amended to read:

AB811,5,2 16.75 (3m) (b) 1. The department and any agency making purchases under s. 16.74 shall attempt to ensure that 5% of the total amount expended under this subchapter in each fiscal year is paid to minority give preference to designated businesses. Except as provided under subd. 3. and sub. (7), the department or agency may purchase materials, supplies, equipment and contractual services from any minority designated business submitting a qualified responsible competitive bid that is no more than 5% higher than the apparent low bid or competitive proposal that is no more than 5% higher than the most advantageous offer proposal. In administering the preference for minority designated businesses established in this paragraph, the department and any agency making purchases under s. 16.74 shall maximize the use of minority designated businesses which are incorporated under ch. 180 or which have their principal place of business in this state.

AB811, s. 8 Section 8. 16.75 (3m) (b) 2. and 3. of the statutes are created to read:

AB811,5,8 16.75 (3m) (b) 2. The department and any agency making purchases under s. 16.74 shall attempt to ensure that of the total amount expended under this subchapter in each fiscal year, 25 percent is paid to small businesses, 5 percent is paid to minority businesses, 5 percent is paid to woman-owned businesses, and 5 percent is paid to veteran-owned businesses.

AB811,5,16 3. The department and any agency making purchases under s. 16.74 may purchase materials, supplies, equipment, and contractual services from any designated business submitting a qualified responsible competitive bid that is no more than 10 percent higher than the apparent low bid or competitive proposal that is no more than 10 percent higher than the most advantageous proposal if not more than 3 years have passed since the designated business was certified, if the designated business is a woman-owned or veteran-owned business, or since the designated business qualified as a minority business or small business.

AB811, s. 9 Section 9. 16.75 (3m) (c) 1., 2. and 3. of the statutes are amended to read:

AB811,5,23 16.75 (3m) (c) 1. After completing any contract under this subchapter, the contractor shall report to the agency that awarded the contract any amount of the contract that was subcontracted to minority businesses, any amount of the contract that was subcontracted to woman-owned businesses, any amount of the contract that was subcontracted to veteran-owned businesses, and any amount of the contract that was subcontracted to small businesses.

AB811,6,10 2. Each agency shall report to the department at least semiannually, or more often if required by the department, the total amount of money it has expended for contracts and orders awarded to minority businesses and the number of contacts with minority businesses in connection with proposed purchases, the total amount of money it has expended for contracts and orders awarded to woman-owned businesses and the number of contacts with woman-owned businesses in connection with proposed purchases, the total amount of money it has expended for contracts and orders awarded to veteran-owned businesses and the number of contacts with veteran-owned businesses in connection with proposed purchases, and the total amount of money it has expended for contracts and orders awarded to small businesses and the number of contacts with small businesses in connection with proposed purchases.

AB811,6,14 3. The department shall maintain and annually publish data on state purchases from minority businesses, woman-owned businesses, veteran-owned businesses, and small businesses, including amounts expended and the percentage of total expenditures awarded to minority businesses each type of business.

AB811, s. 10 Section 10. 16.75 (3m) (c) 4. of the statutes is renumbered 16.75 (3m) (c) 4. (intro.) and amended to read:

AB811,6,20 16.75 (3m) (c) 4. (intro.) The department shall annually prepare and submit a report to the governor and to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3), on all of the following:

AB811,7,2 a. With regard to minority businesses, the total amount of money paid to and of indebtedness or other obligations underwritten by minority businesses, minority financial advisers and minority investment firms under the requirements of this subsection and ss. 16.855 (10m), 16.87 (2), 25.185, 84.075 and 565.25 (2) (a) 3. and on this state's progress toward achieving compliance with par. (b) and ss. 16.855 (10m) (a) and (10n), 16.87 (2), 25.185 and 84.075 (1).

AB811, s. 11 Section 11. 16.75 (3m) (c) 4. b. of the statutes is created to read:

AB811,7,6 16.75 (3m) (c) 4. b. With regard to small businesses, woman-owned businesses, and veteran-owned businesses, this state's progress toward achieving compliance with par. (b) and s. 16.855 (10L) (a).

AB811, s. 12 Section 12. 16.75 (3m) (c) 5. of the statutes is renumbered 16.75 (3m) (c) 5. a. and amended to read:

AB811,7,13 16.75 (3m) (c) 5. a. In determining whether a purchase, contract, or subcontract complies with the goal established under par. (b) or s. 16.855 (10m), 16.87 (2), or 25.185, the department shall include only amounts paid directly to minority businesses, minority financial advisers, and minority investment firms certified by the department of commerce under s. 560.036 (2).

AB811, s. 13 Section 13. 16.75 (3m) (c) 5. b. of the statutes is created to read:

AB811,7,18 16.75 (3m) (c) 5. b. In determining whether a purchase, contract, or subcontract complies with the goal established under par. (b) or s. 16.855 (10L), the department may include only amounts paid directly to woman-owned businesses, veteran-owned businesses, and small businesses.

AB811, s. 14 Section 14. 16.75 (4) (a) of the statutes is renumbered 16.75 (3m) (d) and 16.75 (3m) (d) (intro.), 1., 2., 3. and 5., as renumbered, are amended to read:

AB811,8,2 16.75 (3m) (d) (intro.) The department shall encourage the participation of minority businesses, woman-owned businesses, small businesses, and veteran-owned businesses in the statewide purchasing program by ensuring that there are no undue impediments to such participation and by actively encouraging minority businesses, woman-owned businesses, small businesses, and veteran-owned businesses to play an active role in the solicitation of purchasing business by agencies. To that end the department shall:

AB811,8,6 1. Maintain comprehensive lists of minority businesses, woman-owned businesses, small businesses, and of veteran-owned businesses located in this state which have indicated a willingness to provide materials, supplies, equipment, or contractual services to the state.

AB811,8,10 2. Develop ways of simplifying specifications and terms so that they will not impose unnecessary administrative burdens on minority businesses, woman-owned businesses, small businesses, and veteran-owned businesses located in this state which submit bids or proposals to the state.

AB811,8,13 3. Assist minority businesses, woman-owned businesses, small businesses, and veteran-owned businesses located in this state in complying with the state's competitive bidding and competitive proposal procedures.

AB811,8,19 5. By October 1 of each year, submit a report to the council on small business, veteran-owned business, woman-owned business, and minority business opportunities which evaluates the performance of small businesses located in this state in submitting bids or proposals to the state and makes recommendations for increased involvement of such businesses in submitting competitive bids and proposals under this section.

AB811, s. 15 Section 15. 16.75 (4) (b) of the statutes is renumbered 16.75 (3m) (e) and amended to read:

AB811,8,23 16.75 (3m) (e) The department shall seek the cooperation and assistance of the department of commerce in the performance of its duties under par. (a) (d).

AB811, s. 16 Section 16. 16.75 (4) (c) of the statutes is renumbered 16.75 (3m) (a) 2. and amended to read:

AB811,9,3 16.75 (3m) (a) 2. In this section and s. 16.755, "small "Small business" means a business which has had less than $1.5 $2.5 million in gross annual sales, or had fewer than 25 full-time employees, in the most recent calendar or fiscal year.

AB811, s. 17 Section 17. 16.75 (4) (d) of the statutes is renumbered 16.75 (3m) (a) 3. and amended to read:

AB811,9,9 16.75 (3m) (a) 3. In this subsection and s. 16.755, "veteran-owned "Veteran-owned business" means a small business, as defined in par. (c), that is certified by the department of veterans affairs as being at least 51% owned by one or more veterans, as defined in s. 45.01 (12).

AB811, s. 18 Section 18. 16.755 (intro.), (1) and (4) of the statutes are amended to read:

AB811,9,14 16.755 Council on small business, veteran-owned business, woman-owned business, and minority business opportunities. (intro.) The council on small business, veteran-owned business, woman-owned business, and minority business opportunities shall:

AB811,9,17 (1) Review the extent of small business, veteran-owned business, woman-owned business, and minority business participation, as required under s. 16.75 (3m) (d), in purchasing by this state and its agencies.

AB811,9,19 (4) Advise the department concerning methods of improved compliance with any aspect of its duties under s. 16.75 (4) (a) (3m) (d).

AB811, s. 19 Section 19. 16.755 (4m) of the statutes is created to read:

AB811,9,22 16.755 (4m) Promote the awareness and consumption of locally produced products.

AB811, s. 20 Section 20. 16.755 (5) of the statutes is renumbered 16.755 (5) (intro.) and amended to read:

AB811,10,4 16.755 (5) (intro.) Annually, submit a report containing any recommendations regarding the matters described in subs. (1) to (4) to the governor and the chief clerk of each house of the legislature, for distribution to the legislature under s. 13.172 (2)., a report containing all of the following:

AB811, s. 21 Section 21. 16.755 (5) (a), (b), (c), (d) and (e) of the statutes are created to read:

AB811,10,7 16.755 (5) (a) Any recommendations regarding the matters described in subs. (1) to (4).

AB811,10,8 (b) Evaluation of compliance with the requirements of s. 16.75 (3m) (b).

AB811,10,10 (c) Any recommendations related to bidding procedures to meet or exceed the requirements under s. 16.75 (3m) (b).

AB811,10,11 (d) Evaluation of how vendor payments interact with 31 USC 3902.

AB811,10,13 (e) Evaluation of any impact VendorNet has on the competitive bidding of state contracts.

AB811, s. 22 Section 22. 16.855 (1) of the statutes is amended to read:

AB811,10,25 16.855 (1) The department shall let by contract to the lowest qualified responsible bidder all construction work when the estimated construction cost of the project exceeds $40,000, except for construction work authorized under s. 16.858 and except as provided in sub. (10L) or (10m) or s. 13.48 (19). If a bidder is not a Wisconsin firm and the department determines that the state, foreign nation or subdivision thereof in which the bidder is domiciled grants a preference to bidders domiciled in that state, nation or subdivision in making governmental purchases, the department shall give a preference over that bidder to Wisconsin firms, if any, when awarding the contract, in the absence of compelling reasons to the contrary. The department may enter into agreements with states, foreign nations and subdivisions thereof for the purpose of implementing this subsection.

AB811, s. 23 Section 23. 16.855 (10L) of the statutes is created to read:

AB811,11,4 16.855 (10L) (a) In awarding a construction contract when the estimated construction cost of the project exceeds $40,000 but is less than $100,000, the department shall attempt to ensure all of the following:

AB811,11,7 1. That 5 percent of the total amount expended in each fiscal year is awarded to contractors and subcontractors that are veteran-owned businesses, as defined in s. 16.75 (3m) (a) 3.

AB811,11,10 2. That 5 percent of the total amount expended in each fiscal year is awarded to contractors and subcontractors that are woman-owned businesses, as defined in s. 16.75 (3m) (a) 4.

AB811,11,13 3. That 5 percent of the total amount expended in each fiscal year is awarded to contractors and subcontractors that are small businesses, as defined in s. 16.75 (3m) (a) 2.

AB811,11,16 (b) The department may award any contract to a business under par. (a) that submits a qualified responsible bid that is no more than 5 percent higher than the apparent low bid.

AB811,11,19 (c) Upon completion of any contract, the contractor shall report to the department any amount of the contract that was subcontracted to a business under par. (a).

AB811,11,21 (d) The department shall maintain and annually publish data on contracts awarded to businesses under par. (a).

AB811, s. 24 Section 24. 16.855 (22) of the statutes is amended to read:

AB811,12,6 16.855 (22) The provisions of this section, except sub. subs. (10L) and (10m), do not apply to construction work for any project that does not require the prior approval of the building commission under s. 13.48 (10) (a) if the project is constructed in accordance with policies and procedures prescribed by the building commission under s. 13.48 (29). If the estimated construction cost of any project is at least $40,000, and the building commission elects to utilize the procedures prescribed under s. 13.48 (29) to construct the project, the department shall provide adequate public notice of the project and the procedures to be utilized to construct the project on a publicly accessible computer site.