AB40,124,86 16.855 (5) Any or all bids may be rejected if, in the opinion of the department,
7it is in the best interest of the state or the University of Wisconsin-Madison. The
8reasons for rejection shall be given to the bidder or bidders in writing.
AB40, s. 280 9Section 280. 16.855 (7) of the statutes is amended to read:
AB40,124,1210 16.855 (7) The department may issue contract change orders, if they are
11deemed to be in the best interests of the state or the University of
12Wisconsin-Madison
.
AB40, s. 281 13Section 281. 16.855 (10) of the statutes is amended to read:
AB40,124,1814 16.855 (10) When the department believes that it is in the best interests of the
15state or the University of Wisconsin-Madison to contract for certain articles or
16materials available from only one source, it may contract for said articles or
17materials without the usual statutory procedure, after a publication of a class 1
18notice, under ch. 985, in the official state newspaper.
AB40, s. 282 19Section 282. 16.855 (10m) (ac) of the statutes is amended to read:
AB40,124,2220 16.855 (10m) (ac) In this subsection, "disabled veteran-owned business"
21means a business certified by the department of commerce safety and professional
22services
under s. 560.0335 490.02 (3).
AB40, s. 283 23Section 283. 16.855 (10n) (a) of the statutes is amended to read:
AB40,124,2524 16.855 (10n) (a) In this subsection, "minority group member" has the meaning
25given in s. 560.036 490.04 (1) (f).
AB40, s. 284
1Section 284. 16.855 (13) (c) of the statutes is amended to read:
AB40,125,52 16.855 (13) (c) Changes may be made in the list of subcontractors, with the
3agreement of the department and the prime contractor, when in the opinion of the
4department it is in the best interests of the state or the University of
5Wisconsin-Madison
to require the change.
AB40, s. 285 6Section 285. 16.855 (14) (b) of the statutes is amended to read:
AB40,125,127 16.855 (14) (b) The state is and the University of Wisconsin-Madison are not
8liable to a prime contractor for damage from delay caused by another prime
9contractor if the department or the university takes reasonable action to require the
10delaying prime contractor to comply with its contract. If the state or the university
11is not liable under this paragraph, the delayed prime contractor may bring an action
12for damages against the delaying prime contractor.
AB40, s. 286 13Section 286. 16.855 (16) (a) of the statutes is amended to read:
AB40,125,2014 16.855 (16) (a) This section does not apply to contracts between the state or the
15University of Wisconsin-Madison
and federal government or any agency thereof, or
16with any political subdivision of the state. Subject to the approval of the governor,
17the requirements of this section may be waived in emergency situations involving the
18public health, welfare or safety or with respect to contracting with public utilities,
19but only when any such waiver is deemed by the governor to be in the best interests
20of the state or the university.
AB40, s. 287 21Section 287. 16.855 (16) (b) 2. of the statutes is amended to read:
AB40,126,822 16.855 (16) (b) 2. In emergency situations, the governor may approve repairs
23and construction of a building, structure, or facility in lieu of building commission
24approval under s. 13.48 (10), and for such purposes, may authorize the expenditure
25of up to $500,000 from the state building trust fund or from other available moneys

1appropriated to an agency or other available moneys of the University of
2Wisconsin-Madison
derived from any revenue source. The governor may delegate
3to the secretary the authority to grant approvals under this subdivision. The
4governor shall report any such authorization to the building commission at its next
5regular meeting following the authorization. In this subdivision, "emergency"
6means any natural or human-caused situation that results in or may result in
7substantial injury or harm to the population or substantial damage to or loss of
8property.
AB40, s. 288 9Section 288. 16.855 (20) of the statutes is amended to read:
AB40,126,1610 16.855 (20) This section does not apply to construction work performed by
11University of Wisconsin System or University of Wisconsin-Madison students when
12the construction work performed is a part of a curriculum and where the work is
13course-related for the student involved. Prior approval of the building commission
14must be obtained for all construction projects to be performed by University of
15Wisconsin System or University of Wisconsin-Madison students, except projects
16specified in s. 13.48 (10 (c)
.
AB40, s. 289 17Section 289. 16.855 (22) of the statutes is amended to read:
AB40,127,518 16.855 (22) The provisions of this section, except sub. (10m), do not apply to
19construction work for any project that does not require the prior approval of the
20building commission under s. 13.48 (10) (a) if the project is constructed in accordance
21with policies and procedures prescribed by the building commission under s. 13.48
22(29). The provisions of this section do not apply to construction work for any project
23by or for the University of Wisconsin-Madison that is funded entirely from sources
24other than general purpose revenue or general fund supported borrowing.
If the
25estimated construction cost of any project, other than a University of

1Wisconsin-Madison project that is exempted under this subsection,
is at least
2$40,000, and the building commission elects to utilize the procedures prescribed
3under s. 13.48 (29) to construct the project, the department shall provide adequate
4public notice of the project and the procedures to be utilized to construct the project
5on a publicly accessible computer site.
AB40, s. 290 6Section 290. 16.865 (1) (a) of the statutes is amended to read:
AB40,127,97 16.865 (1) (a) Protect Except as provided in sub. (10), protect the state and the
8University of Wisconsin-Madison
from losses which are catastrophic in nature and
9minimize total cost to the state of all activities related to the control of accidental loss.
AB40, s. 291 10Section 291. 16.865 (2) of the statutes is amended to read:
AB40,127,1411 16.865 (2) Identify Except as provided in sub. (10), identify and evaluate
12exposure to loss to the state, its and University of Wisconsin-Madison and their
13employees or injury to the public by reason of fire or other accidents and fortuitous
14events at state-owned and the university-owned properties or facilities.
AB40, s. 292 15Section 292. 16.865 (3) of the statutes is amended to read:
AB40,127,1916 16.865 (3) Recommend Except as provided in sub. (10), recommend changes in
17procedures, program conditions or capital improvement for all agencies and the
18University of Wisconsin-Madison
which would satisfactorily eliminate or reduce the
19existing exposure.
AB40, s. 293 20Section 293. 16.865 (4) of the statutes is amended to read:
AB40,127,2521 16.865 (4) Manage the state employees' Except as provided in sub. (10),
22manage the
worker's compensation program for state and University of
23Wisconsin-Madison employees
and the statewide self-funded programs to protect
24the state and the University of Wisconsin–Madison from losses of and damage to
25state property and liability.
AB40, s. 294
1Section 294. 16.865 (5) of the statutes is amended to read:
AB40,128,82 16.865 (5) Arrange appropriate Except as provided in sub. (10), arrange
3insurance contracts for the transfer of risk of loss on the part of the state and the
4University of Wisconsin-Madison
or its their employees, to the extent such loss
5cannot reasonably be assumed by the individual agencies or the university or the
6self-funded programs. The placement of insurance may be by private negotiation
7rather than competitive bid, if such insurance has a restricted number of interested
8carriers. The department shall approve all insurance purchases.
AB40, s. 295 9Section 295. 16.865 (8) of the statutes, as affected by 2011 Wisconsin Act 7,
10is amended to read:
AB40,129,211 16.865 (8) Annually Except as provided in sub. (10), annually in each fiscal
12year, allocate as a charge to each agency and to the University of Wisconsin-Madison
13a proportionate share of the estimated costs attributable to programs administered
14by the agency or the university to be paid from the appropriation under s. 20.505 (2)
15(k). The department may charge premiums to agencies and to the University of
16Wisconsin-Madison
to finance costs under this subsection and pay the costs from the
17appropriation on an actual basis. The department shall deposit all collections under
18this subsection in the appropriation account under s. 20.505 (2) (k). Costs assessed
19under this subsection may include judgments, investigative and adjustment fees,
20data processing and staff support costs, program administration costs, litigation
21costs, and the cost of insurance contracts under sub. (5). In this subsection, "agency"
22means an office, department, independent agency, institution of higher education,
23association, society, or other body in state government created or authorized to be
24created by the constitution or any law, that is entitled to expend moneys
25appropriated by law, including the legislature and the courts, but not including an

1authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 37, 52, 231,
2232, 233, 234, 235, 237, 238, or 279.
AB40, s. 296 3Section 296. 16.865 (10) of the statutes is created to read:
AB40,129,124 16.865 (10) This section does not apply to the University of Wisconsin-Madison
5for any fiscal year if the University of Wisconsin-Madison, no later than December
631 preceding the beginning of that fiscal year, provides written notice to the
7department that it has elected not to be governed by this section. Any notice of
8nonelection applies to all subsequent fiscal years unless the University of
9Wisconsin-Madison, no later than December 31 preceding the beginning of a fiscal
10year, provides written notice to the department that it has elected to be governed by
11this section. Any notice of election applies to all subsequent fiscal years unless the
12University of Wisconsin-Madison again provides timely notice of nonelection.
AB40, s. 297 13Section 297. 16.87 (1) (am) of the statutes is amended to read:
AB40,129,1614 16.87 (1) (am) "Disabled veteran-owned business" means a business certified
15by the department of commerce safety and professional services under s. 560.0335
16490.02 (3).
AB40, s. 298 17Section 298. 16.87 (2) (a) of the statutes is amended to read:
AB40,129,2218 16.87 (2) (a) A contract for engineering services or architectural services or a
19contract involving an expenditure of $10,000 or more for construction work, or
20$30,000 or more for limited trades work, to be done for or furnished to the state or
21a department, board, commission, or officer of the state or the University of
22Wisconsin-Madison
is exempt from the requirements of ss. 16.705 and 16.75.
AB40, s. 299 23Section 299. 16.87 (5) of the statutes is created to read:
AB40,130,3
116.87 (5) This subsection does not apply to any project for the University of
2Wisconsin-Madison that is funded entirely from sources other than general purpose
3revenue or general fund supported borrowing.
AB40, s. 300 4Section 300. 16.875 of the statutes is amended to read:
AB40,130,6 516.875 Setoffs. All amounts owed by this state or the University of
6Wisconsin-Madison
under this subchapter are subject to being set off under s. 73.12.
AB40, s. 301 7Section 301. 16.89 of the statutes is amended to read:
AB40,130,16 816.89 Construction and services controlled by this chapter. No
9department, independent agency, constitutional office or agent of the state shall
10employ engineering, architectural or allied services or expend money for
11construction purposes on behalf of the state, except as provided in this chapter. The
12University of Wisconsin-Madison shall not employ engineering, architectural, or
13allied services or expend money for construction purposes on behalf of the university,
14except as provided in this chapter and except that the university may engage such
15employment for any project that is financed entirely from sources other than general
16purpose revenue or general fund supported borrowing.
AB40, s. 302 17Section 302. 16.891 (1) (b) of the statutes is amended to read:
AB40,130,2318 16.891 (1) (b) "Total cost of occupancy" means the cost to operate and maintain
19the physical plant of a building, structure, or facility, including administrative costs
20of an agency or the University of Wisconsin-Madison attributable to operation and
21maintenance of a building, structure, or facility, together with any debt service costs
22associated with the building, structure, or facility, computed in the manner
23prescribed by the department.
AB40, s. 303 24Section 303. 16.891 (2) of the statutes is amended to read:
AB40,131,10
116.891 (2) Except as provided in sub. (4), each agency and the University of
2Wisconsin-Madison
shall report to the department no later than October 1 of each
3year concerning the total cost of occupancy of each state-owned or university-owned
4building, structure, and facility, excluding public highways and bridges, under the
5jurisdiction of the agency or university for the preceding fiscal year. The report shall
6be made in a format prescribed by the department. Beginning in 2009, if a building,
7structure, or facility is a part of an institution, the agency having jurisdiction of the
8institution or the University of Wisconsin-Madison shall also include in its report
9the total cost of occupancy of all of the buildings, structures, and facilities within the
10institution.
AB40, s. 304 11Section 304. 16.891 (4) of the statutes is amended to read:
AB40,131,1512 16.891 (4) The department may exempt an agency or the University of
13Wisconsin-Madison
from compliance with the reporting requirement under sub. (2)
14with respect to any building, structure, or facility that the department determines
15to have a minimal total cost of occupancy.
AB40, s. 305 16Section 305. 16.895 (title) of the statutes is amended to read:
AB40,131,18 1716.895 (title) State-owned State- or university-owned or operated
18heating, cooling or
power plants.
AB40, s. 306 19Section 306. 16.895 (2) (a) of the statutes is amended to read:
AB40,131,2220 16.895 (2) (a) Prepare all specifications, bid and administer contracts for the
21purchase of fuels for all state-owned or operated heating, cooling or power plants
22that are owned or operated by the state or the University of Wisconsin-Madison.
AB40, s. 307 23Section 307. 16.895 (2) (c) of the statutes is amended to read:
AB40,132,224 16.895 (2) (c) Determine the method of operation of state-owned state- or
25university-owned
or operated heating, cooling or power plants, including

1maintenance standards and policies concerning utilization of alternative fuels and
2energy conservation.
AB40, s. 308 3Section 308. 16.895 (2) (d) of the statutes is amended to read:
AB40,132,64 16.895 (2) (d) Assure compliance with federal and state laws, federal
5regulations and state administrative rules applicable to state-owned state- or
6university-owned
or operated heating, cooling or power plants.
AB40, s. 309 7Section 309. 16.895 (2) (e) of the statutes is amended to read:
AB40,132,108 16.895 (2) (e) Delegate to any agency or to the University of
9Wisconsin-Madison
the department's authority under par. (c) or (d) and approve all
10expenditures of the agency or university under par. (c) or (d).
AB40, s. 310 11Section 310. 16.895 (2) (g) of the statutes is amended to read:
AB40,132,1512 16.895 (2) (g) Provide for emissions testing, waste product disposal and fuel
13quality testing at state-owned state- or university-owned or operated heating,
14cooling or power plants, and secure permits that are required for operation of the
15plants.
AB40, s. 311 16Section 311. 16.895 (2) (h) of the statutes is amended to read:
AB40,132,2017 16.895 (2) (h) Periodically assess to agencies and the University of
18Wisconsin-Madison
their proportionate cost of the expenses incurred by the
19department under this subsection and ss. 16.85 (4), 16.90, 16.91 and 16.92 in
20accordance with a method of apportionment determined by the department.
AB40, s. 312 21Section 312. 16.897 of the statutes is amended to read:
AB40,133,2 2216.897 Space and water heating systems. In planning and designing space
23or water heating systems for new or existing state facilities and facilities of the
24University of Wisconsin-Madison
, the department shall ensure that geothermal

1technologies are utilized to the greatest extent that is cost-effective and technically
2feasible.
AB40, s. 313 3Section 313. 16.90 (title) of the statutes is amended to read:
AB40,133,5 416.90 (title) Fuel for state and university heating, cooling or power
5plants.
AB40, s. 314 6Section 314. 16.90 (2) (a) of the statutes is amended to read:
AB40,133,137 16.90 (2) (a) Prepare all specifications for contracts for the purchase of fuel for
8each state-owned or operated heating, cooling or power plant that is owned or
9operated by the state or the University of Wisconsin-Madison
. All such
10specifications where feasible shall provide for purchase of such fuel on a heating
11value and quality basis and may provide for an adjustment of the base price of any
12fuel as a result of changes in production or transportation costs during the term of
13a contract.
AB40, s. 315 14Section 315. 16.90 (2) (b) of the statutes is amended to read:
AB40,133,1815 16.90 (2) (b) Distribute fuel purchased by the department or, any other agency ,
16or the University of Wisconsin-Madison
to agencies that require it or to the
17University of Wisconsin-Madison as required
, and reallocate such fuel between
18agencies or the University of Wisconsin-Madison in the event of a shortage.
AB40, s. 316 19Section 316. 16.90 (2) (c) of the statutes is amended to read:
AB40,133,2120 16.90 (2) (c) Set standards for storage of fuel by agencies and the University
21of Wisconsin-Madison
.
AB40, s. 317 22Section 317. 16.90 (2) (d) of the statutes is amended to read:
AB40,134,223 16.90 (2) (d) Test all fuel purchased for each state-owned state- or
24university-owned
or operated heating, cooling or power plant wherein the annual

1requirement is in excess of 12,500 therms and where purchased on a heating value
2and quality basis.
AB40, s. 318 3Section 318. 16.90 (2) (e) of the statutes is amended to read:
AB40,134,74 16.90 (2) (e) Promulgate such rules as the secretary considers necessary, not
5inconsistent with this section, to promote efficiency, energy conservation and
6economy in the testing, handling and use of fuel for state-owned state- or
7university-owned
or operated heating, cooling or power plants.
AB40, s. 319 8Section 319. 16.91 (2) of the statutes is amended to read:
AB40,134,159 16.91 (2) No contract for the purchase of fuel for any state-owned state- or
10university-owned
or operated heating or heating and power plant wherein the
11annual requirement is in excess of 12,500 therms is binding unless purchased upon
12specifications furnished by the secretary. A contract for fuel may be for any term
13deemed to be in the best interests of the state or the University of
14Wisconsin-Madison
, but the term and any provisions for renewal or extension shall
15be incorporated in the bid specifications and the contract document.
AB40, s. 320 16Section 320. 16.91 (3) of the statutes is amended to read:
AB40,134,2517 16.91 (3) Payments for fuel delivered under contracts specified in sub. (2) and
18for delivery costs shall be made upon vouchers approved by the secretary. Upon being
19audited and paid, the department shall charge each purchase against the
20appropriation to the agency which has jurisdiction over the facility at which the fuel
21is used or to the University of Wisconsin-Madison, if the university has such
22jurisdiction
. The secretary shall report on a quarterly basis to each such agency and
23to the University of Wisconsin-Madison
the total amount of payments charged under
24this subsection to each of its appropriations and facilities. Approval of the payments
25by the any agency whose appropriation is charged is not required.
AB40, s. 321
1Section 321. 16.92 (2) of the statutes is amended to read:
AB40,135,42 16.92 (2) Each agency and the University of Wisconsin-Madison shall utilize
3the most cost-effective means of procurement of fuel, electricity, heat and chilled
4water.
AB40, s. 322 5Section 322. 16.93 (2) of the statutes is amended to read:
AB40,135,96 16.93 (2) Except as provided in sub. (3), any agency or the University of
7Wisconsin-Madison
, with the approval of the department, may sell fuel, water,
8sewage treatment service, electricity, heat or chilled water to another agency, a
9federal agency, a local government or a private entity.
AB40, s. 323 10Section 323. 16.95 (intro.) of the statutes is amended to read:
AB40,135,16 1116.95 Powers and duties. (intro.) The department shall, through a system
12of comprehensive long-range planning, promote the development and the maximum
13wise use of the energy, natural, and human resources of the state. It and develop and
14implement a cost-effective, balanced, reliable, and environmentally responsible
15energy strategy to promote economic growth. The department
shall do all of the
16following
:
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