LRB-2231/2
JTK:nwn:rs
2011 - 2012 LEGISLATURE
September 15, 2011 - Introduced by Senator Harsdorf, cosponsored by
Representative Murtha. Referred to Joint Committee on Finance.
SB188,1,2 1An Act relating to: expenditure of $129,693.02 from the general fund in
2payment of a claim against the state made by Workforce Resource, Inc.
Analysis by the Legislative Reference Bureau
This bill directs expenditure of $129,693.02 from the general fund in payment
of a claim against the Department of Workforce Development (DWD) and the
Department of Administration (DOA) by Workforce Resource, Inc. The claimant
asserts that, at the behest of DWD, it executed a master lease agreement with a third
party for a facility in the city of River Falls to be occupied by DWD in 2006 and made
modifications to the facility to meet DWD's specifications. DWD then occupied the
modified space in the facility for use as a state job center. The claimant attempted
to negotiate and execute a written sublease with DWD for the occupied space but was
unsuccessful. DWD made rental payments to the claimant on a month-to-month
basis during its occupancy and then vacated the premises in June 2008. The
claimant asserts that there was an unsigned lease agreement between the claimant
and the state, as represented by DWD and DOA. Although certain formal requisites
are necessary under Wisconsin law for a lease agreement to be enforceable, s. 706.04,
stats., provides that if all of the elements of a transaction are clearly and
satisfactorily proved, the transaction may be enforceable under certain conditions by
a court using its equitable powers. DWD and DOA assert that since under state law
DWD has no authority to lease property without the approval of DOA, any implicit
agreement by DWD is not enforceable against the state. They also assert that there
was a disagreement between the claimant and the state over the rental amount and
the claimant's acceptance of a reduced amount on a month-to-month basis

constitutes acceptance of the state's position concerning the rental amount. The
claimant claimed $129,693.02, based upon underpayment of rental payments by the
state during its occupancy of the facility and full rental payments for the remainder
of the term of occupancy (August 31, 2011), because the modified space was not
readily rentable to another tenant and therefore remained vacant after DWD
terminated its occupancy. This claim was presented to the claims board in the
amount of $120,833.12 and was denied (see 2009 Senate Journal, p. 817).
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:
SB188, s. 1 1Section 1. Claim against the state.
SB188,2,142 (1) There is directed to be expended from the appropriation under section
320.505 (4) (d) of the statutes, as affected by the acts of 2011, $129,693.02 in payment
4of a claim against the state made by Workforce Resource, Inc., Menomonie,
5Wisconsin, as reimbursement for expenses incurred during the period from 2006 to
62011 in modifying a facility in the city of River Falls for occupancy by the department
7of workforce development, which the department occupied for 21 months, and in
8absorbing the costs of vacant space intended for use by the department during the
9term of a 5-year unsigned sublease. The claimant asserts that it incurred costs
10based upon assurances of occupancy and payment of certain costs by the department
11and is equitably entitled to payment. Acceptance of this payment releases this state
12and its officers, employees, and agents from any further liability resulting from
13express or implied agreements to modify or occupy this facility or to make any rental
14payments during the period ending on August 31, 2011.
SB188,2,1515 (End)
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