LRB-1336/3
MES&CMH:bjk:md
2009 - 2010 LEGISLATURE
January 16, 2009 - Introduced by Representatives Clark, Molepske, Bernard
Schaber, Benedict, Berceau, Black, Danou, Hixson, Mason, Nelson, Parisi,
Pasch, Pope-Roberts, Radcliffe, Richards, Roys, Seidel, Sheridan, Shilling,
Sinicki, Smith, Van Akkeren, A. Williams, Zigmunt, Jorgensen
and Barca,
cosponsored by Senators Plale and Erpenbach. Referred to Committee on
Jobs, the Economy and Small Business.
AB1,1,7 1An Act to repeal 16.75 (1) (a) 2.; to renumber 16.754 (1) (a); to renumber and
2amend
16.754 (2); to amend 16.72 (2) (c), 16.754 (title), 16.754 (2) (title) and
316.754 (3) (intro.); and to create 16.754 (1) (am), 16.754 (2) (a) and 66.0145 of
4the statutes; relating to: state procurement of products and services from
5businesses located in this state and setting a goal for local government to
6purchase a certain percentage of products and services from businesses located
7in 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. One exception requires DOA to give a
preference to Wisconsin producers, distributors, suppliers, and retailers over any
out-of-state vendor that is domiciled in a jurisdiction that grants a preference to
vendors domiciled in that jurisdiction. This bill deletes that exception and, instead,
requires DOA and any agency making purchases to attempt to ensure that at least
2 percent of the total amount expended for such procurement in each fiscal year is
from Wisconsin-based businesses; however, in any fiscal year, the percentage of the
total amount expended from Wisconsin-based businesses may not be lower than it
was in the previous fiscal year.

This bill also sets a goal that at least 2 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 purchases
of products and services from Wisconsin-based businesses will not be lower than it
was in the previous year.
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:
AB1, s. 1 1Section 1. 16.72 (2) (c) of the statutes is amended to read:
AB1,2,52 16.72 (2) (c) To the extent possible, the department shall write specifications
3so as to permit the purchase of materials manufactured in the United States, as
4defined in s. 16.754 (1) (b), or the purchase of local products or services, as defined
5in s. 16.754 (1) (am)
.
AB1, s. 2 6Section 2. 16.75 (1) (a) 2. of the statutes is repealed.
AB1, s. 3 7Section 3. 16.754 (title) of the statutes is amended to read:
AB1,2,9 816.754 (title) Preference for local products and services and
9American-made materials.
AB1, s. 4 10Section 4. 16.754 (1) (a) of the statutes is renumbered 16.754 (1) (ar).
AB1, s. 5 11Section 5. 16.754 (1) (am) of the statutes is created to read:
AB1,2,1312 16.754 (1) (am) "Local product or service" has the meaning given in s. 66.0145
13(1) (b).
AB1, s. 6 14Section 6. 16.754 (2) (title) of the statutes is amended to read:
AB1,2,1515 16.754 (2) (title) Purchase preference preferences.
AB1, s. 7 16Section 7. 16.754 (2) of the statutes is renumbered 16.754 (2) (b) and amended
17to read:
AB1,3,3
116.754 (2) (b) Notwithstanding s. 16.75 (1) (a) 2., (2), (2m) and (6), when all
2other factors are substantially equal the state shall purchase materials which are
3manufactured to the greatest extent in the United States.
AB1, s. 8 4Section 8. 16.754 (2) (a) of the statutes is created to read:
AB1,3,115 16.754 (2) (a) The department, any other designated purchasing agent under
6s. 16.71 (1), and any agency making purchases under s. 16.74 shall attempt to ensure
7that at least 2 percent of the total amount expended under this subchapter in each
8fiscal year is for local products or services except the percentage of the total amount
9expended in any fiscal year for local products or services may not be lower than the
10percentage of the total amount expended in the previous fiscal year for local products
11or services.
AB1, s. 9 12Section 9. 16.754 (3) (intro.) of the statutes is amended to read:
AB1,3,2113 16.754 (3) Exemptions. (intro.) Subsection (2) (b) does not apply if the
14materials are purchased for the purpose of commercial resale or for the purpose of
15use in the production of goods for commercial sale. Subsection (2) (b) does not apply
16to the purchase of stationery and printing materials. Subsection (2) (b) does not
17apply if the department determines, under s. 16.75 (1) (a) 2., that the foreign nation
18or subdivision thereof in which the vendor is domiciled does not give preference to
19vendors domiciled in that nation or subdivision in making governmental purchases.
20Subsection (2) (b) does not apply if the department or other person having
21contracting authority in respect to the purchase determines that:
AB1, s. 10 22Section 10. 66.0145 of the statutes is created to read:
AB1,3,24 2366.0145 Purchases of Wisconsin goods and services. (1) Definitions. In
24this section:
AB1,3,2525 (a) "Local governmental unit" has the meaning given in s. 66.0135 (1) (c).
AB1,4,2
1(b) "Local product or service" means a product or service that is purchased from
2a person whose principal place of business is located in this state.
AB1,4,8 3(2) Purchasing goals. It shall be a goal of a local governmental unit that,
4annually, at least 2 percent of the aggregate value of purchases of products and
5services by that local governmental unit shall be local products or services, and it
6shall be a further goal of the local governmental unit that the percentage of the
7aggregate value of purchases of products and services in any year that are local
8products and services will not be lower than the aggregate value in the previous year.
AB1, s. 11 9Section 11. Initial applicability.
AB1,4,1110 (1) This act first applies to purchases made in the fiscal year that begins in the
11year after this subsection takes effect.
AB1,4,1212 (End)
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