AB40: Bill Text

AB40,126 Section 126. 16.848 (1e) of the statutes is created to read:

AB40,96,5 16.848 (1e) If the department sells, leases, or contracts with a purchaser or lessee for the operation of any real property under sub. (1) that was under the jurisdiction of an agency, as defined in s. 16.52 (7), prior to the sale, lease, or contract, the agency shall convey all systems, fixtures, or additional property interests specified by the department to the purchaser or lessee of the property on terms specified by the department. If the department sells, leases, or contracts with a purchaser or lessee for the operation of a state-owned heating, cooling, or power plant that is under the jurisdiction of an agency, as defined in s. 16.52 (7), the agency shall convey all real and personal property associated with the plant to the purchaser or lessee on terms specified by the department.

AB40,127 Section 127. 16.848 (1m) of the statutes is created to read:

AB40,96,10 16.848 (1m) If any property that is proposed to be sold by the department under sub. (1) is co-owned by a nonstate entity, the department shall afford to that entity the right of first refusal to purchase the share of the property owned by the state on reasonable financial terms established by the department.

AB40,128 Section 128. 16.848 (1s) of the statutes is created to read:

AB40,96,18 16.848 (1s) (a) If the department sells, leases, or contracts with a purchaser or lessee for the operation of any facility under sub. (1) that is operated by an agency, as defined in s. 16.52 (7), on the day prior to the effective date of the sale, lease, or contract, the secretary shall, notwithstanding s. 16.50 (1), require submission of expenditure estimates for approval under s. 16.50 (2) for each agency that proposes to expend moneys from any appropriation for the operation of the facility during the fiscal biennium in which the facility is sold or leased or operated under contract.

AB40,97,5 (b) Notwithstanding s. 16.50 (2), the secretary shall disapprove any such estimate for the period during which the facility is not operated by the agency. The secretary may then require the use of the amounts of any disapproved expenditure estimates for the purpose of purchase of contractual services from the facility or payment of the costs of purchasing services that were provided by the facility from an alternative source. If the department sells, leases, or contracts for the operation of a facility under this subsection, the secretary may identify any full-time equivalent positions authorized for the agency that was operating the facility the duties of which primarily relate to the management or operation of the facility, and may decrease the authorized full-time equivalent positions for the agency by the number of positions so identified effective on the effective date of the sale, lease, or contract.

AB40,97,13 (c) Notwithstanding s. 20.001 (3) (a) to (c), the secretary may lapse or transfer to the general fund from the unencumbered balance of appropriations to any agency, other than sum sufficient appropriations or appropriations of program revenues to the Board of Regents of the University of Wisconsin System or appropriations of segregated or federal revenues, any amount appropriated to an agency that is determined by the secretary to be allocated for the management or operation of the facility that was sold or leased or operated under contract effective on the effective date of the sale, lease, or contract.

AB40,97,15 (d) The secretary shall report any action taken under this subsection to the cochairpersons of the joint committee on finance.

AB40,129 Section 129. 16.848 (2) (a) of the statutes is repealed.

AB40,130 Section 130. 16.848 (2) (b) of the statutes is repealed.

AB40,131 Section 131. 16.848 (2) (gw) of the statutes is repealed.

AB40,132 Section 132. 16.848 (4) (a) of the statutes is amended to read:

AB40,98,15 16.848 (4) (a) Except as provided in s. 13.48 (14) (e), if there is any outstanding public debt used to finance the acquisition, construction, or improvement of any property that is sold or leased under sub. (1), the department shall deposit a sufficient amount of the net proceeds from the sale or lease of the property in the bond security and redemption fund under s. 18.09 to repay the principal and pay the interest on the debt, and any premium due upon refunding any of the debt. If there is any outstanding public debt used to finance the acquisition, construction, or improvement of any property that is sold or leased under sub. (1), the department shall then provide a sufficient amount of the net proceeds from the sale or lease of the property for the costs of maintaining federal tax law compliance applicable to the debt. If the property was acquired, constructed, or improved with federal financial assistance, the department shall pay to the federal government any of the net proceeds required by federal law. If the property was acquired by gift or grant or acquired with gift or grant funds, the department shall adhere to any restriction governing use of the proceeds. Except as required under ss. 13.48 (14) (e), 20.395 (9) (qd), and 51.06 (6), if there is no such debt outstanding, there are no moneys payable to the federal government, and there is no restriction governing use of the proceeds, and if the net proceeds exceed the amount required to be deposited, paid, or used for another purpose under this paragraph subsection, the department shall use the net proceeds or remaining net proceeds to pay principal and interest costs on other outstanding public debt.

AB40,133 Section 133. 16.848 (4) (b) 1. of the statutes is repealed and recreated to read:

AB40,98,19 16.848 (4) (b) 1. To the extent that debt service on the property being sold or leased was paid from a segregated fund, other outstanding public debt related to that segregated fund should be redeemed.

AB40,134 Section 134. 16.848 (4) (b) 2. of the statutes is repealed.

AB40,135 Section 135. 16.848 (4) (b) 3. of the statutes is amended to read:

AB40,98,25 16.848 (4) (b) 3. The extent to which general obligation debt that was issued to acquire, build, or improve the property being sold or leased is subject to current optional redemption, would require establishment of an escrow, or could be assigned for accounting purposes to another statutory bond purpose.

AB40,136 Section 136. 16.848 (4) (b) 5. of the statutes is amended to read:

AB40,99,3 16.848 (4) (b) 5. The costs of maintaining federal tax law compliance in the selection of general obligation debt to be redeemed.

AB40,137 Section 137. 16.848 (4) (c) of the statutes is created to read:

AB40,99,25 16.848 (4) (c) If there are any outstanding revenue obligations, issued pursuant to subch. II of ch. 18, used to finance the acquisition, construction, or improvement of any property that is sold or leased under sub. (1), the department shall deposit a sufficient amount of the net proceeds from the sale or lease of the property in the respective redemption fund provided under s. 18.561 (5) or 18.562 (3) to repay the principal and pay the interest on the revenue obligations, and any premium due upon refunding any of the revenue obligations. If there are any outstanding revenue obligations, issued pursuant to subch. II of ch. 18, used to finance the acquisition, construction, or improvement of any property that is sold or leased under sub. (1), the department shall then provide a sufficient amount of the net proceeds from the sale or lease of the property for the costs of maintaining federal tax law compliance applicable to the revenue obligations. For the purpose of paying principal and interest costs on other outstanding revenue obligations, the secretary may cause outstanding revenue obligations to be called for redemption on or following their optional redemption date, establish one or more escrow accounts to redeem obligations at their optional redemption date, or purchase bonds on the open market. Except as required under ss. 13.48 (14) (e), 20.395 (9) (qd), and 51.06 (6), if the net proceeds exceed the amount required to be deposited, paid, or used for another purpose under this paragraph, the department shall use the net proceeds or remaining net proceeds to pay principal and interest costs on other similar revenue obligations.

AB40,138 Section 138. 16.849 of the statutes is created to read:

AB40,100,5 16.849 Facility design services for state agencies. The department may provide facility design services to agencies, as defined in s. 16.70 (1e). The department may assess a fee to agencies for which the department performs services under this section.

AB40,139 Section 139. 16.855 (1) of the statutes is renumbered 16.855 (1m) and amended to read:

AB40,100,13 16.855 (1m) The department shall let by contract to the lowest qualified responsible bidder all construction work when the estimated construction cost of the project exceeds $50,000, except for construction work authorized under s. 16.858 and except as provided in sub. (1r) or (10m) or s. 13.48 (19). If factors other than dollar amounts are required to be evaluated for a project, the department shall specify a formula that will convert the other factors into a dollar value for comparison.

AB40,100,21 (1r) 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.

AB40,140 Section 140. 16.855 (1g) of the statutes is created to read:

AB40,100,23 16.855 (1g) In this section:

AB40,101,3 (a) "Mechanical, electrical, or plumbing subcontractor" is a contractor that performs mechanical, electrical, plumbing, or fire protection work and enters into a contract with a general prime contractor to perform their division of work.

AB40,101,5 (b) "Qualified bidder" means a person that the department certifies under sub. (9m) (b) 1.

AB40,101,7 (c) "Qualified responsible bidder" means a person who is a qualified bidder and who is a responsible bidder.

AB40,101,9 (d) "Responsible bidder" means a person that the department certifies under sub. (9m) (b) 2.

AB40,101,13 (e) "Single prime contracting" means bidding and contracting through a process in which only a general prime contractor has a contractual relationship with the state and all mechanical, electrical, or plumbing subcontractors are selected by department and are subcontractors to the general prime contractor.

AB40,141 Section 141. 16.855 (2) (a) 5. of the statutes is amended to read:

AB40,101,15 16.855 (2) (a) 5. Date, when and place where plans will be available.

AB40,142 Section 142. 16.855 (2) (a) 6. of the statutes is created to read:

AB40,101,18 16.855 (2) (a) 6. That the department shall consider only bids from persons who are responsible bidders and, unless sub. (9m) (ar) 2. applies, qualified bidders.

AB40,143 Section 143. 16.855 (9) of the statutes is renumbered 16.855 (9m) (b) 1. c. and amended to read:

AB40,101,25 16.855 (9m) (b) 1. c. The If the department may require bidders to submit so requires or the bidder will be considered unqualified, the bidder has submitted a sworn statements statement as to financial ability, equipment, and experience in construction and require such other information as may be necessary to determine their the bidder's competency.

AB40,144 Section 144 . 16.855 (9m) of the statutes is created to read:

AB40,102,2 16.855 (9m) (ag) In this subsection, "bidder" includes a potential bidder.

AB40,102,11 (ar) 1. The department shall certify bidders as qualified bidders under par. (b) 1. and responsible bidders under par. (b) 2. and shall administer a registration process for all bidders submitting bids on any construction project under this section. The department shall issue, in a timely manner, a certification decision on a complete application for certification. A certification under this subdivision is valid for 2 years except the department may decertify a bidder if the department determines that the bidder no longer meets the qualifications under par. (b) and if the department follows a decertification process developed by rule that provides to the bidder notice, hearing, and a means to appeal.

AB40,102,14 2. Notwithstanding sub. (1m) or (14) (e), the department may waive the condition of certification as a qualified bidder if the project is of such magnitude as to limit competition if the conditions under par. (b) 1. were required.

AB40,102,20 3. The department shall consider for certification under par. (b) associations consisting of at least 2 contracting firms that are organized for the purpose of entering into a construction contract as a single entity if at least one of the contracting firms is qualified under par. (b) and if the assignment of, and provisions for the continuity of, the various responsibilities within the association are agreed upon before the contract is awarded.

AB40,102,22 (b) 1. To be certified as a qualified bidder, a bidder must meet all of the following conditions:

AB40,103,2 a. The bidder has completed at least one project that involved similar work to the work being bid and the project was at least 50 percent of the size or value of the division of the project being bid. If the department determines that more experience is necessary for a particular project, the department may include additional requirements in the specifications and certify bidders accordingly.

AB40,103,5 b. The bidder has access to all necessary equipment and the organizational capacity and technical competence necessary to perform the project work properly and expeditiously.

AB40,103,7 2. To be certified as a responsible bidder, a bidder must meet all of the following conditions:

AB40,103,8 a. The bidder maintains a permanent place of business.

AB40,103,12 b. The bidder submits a sworn statement, upon the department's request, that indicates that the bidder has adequate financial resources to complete the work being bid, taking into account any other work the bidder is currently under contract to complete.

AB40,103,13 c. The bidder is bondable for the term of the proposed contract.

AB40,103,21 d. The bidder has a record of satisfactorily completing projects. In determining this factor, the department shall consider if the bidder has completed all contracts in accordance with drawings and specifications; diligently pursued execution of the work and completed contracts according to the time schedule, taking account of extensions granted; fulfilled guarantee requirements of contracts; if the contract included an affirmative action program requirement, complied with the requirement; and, if the contract included a safety program requirement, complied with the requirement.

AB40,103,24 e. The bidder is not on an ineligible list that the department maintains under s. 16.705 (9) or 16.765 (9) or on a list that another agency maintains for persons who violated construction-related statutes or administrative rules.

AB40,103,25 f. The bidder has been in business for at least 12 months.

AB40,104,1 g. The bidder is a legal entity and authorized to do business in Wisconsin.

AB40,104,3 h. The bidder has performed at least one other public project for a government entity.

AB40,104,5 i. The bidder can provide information, upon request, to the department on the bidder's ownership, management, and control.

AB40,104,8 j. In any jurisdiction, the bidder, in the previous 10 years, has not been debarred from any government contracts and has not been found to have committed tax avoidance or evasion.

AB40,104,12 k. In any jurisdiction, in the previous 10 years, the bidder has not been disciplined under a professional license and none of the bidder's employees and no member of the bidder's organization has been disciplined under a professional license.

AB40,145 Section 145. 16.855 (10m) (am) 3. of the statutes is amended to read:

AB40,104,18 16.855 (10m) (am) 3. The department may award any contract to a minority business or disabled veteran-owned business, or a business that is both a minority business and a disabled veteran-owned business, that if the business is a qualified responsible bidder and the business submits a qualified responsible bid that is no more than 5 percent higher than the apparent low bid.

AB40,146 Section 146. 16.855 (13) of the statutes is repealed and recreated to read:

AB40,104,24 16.855 (13) (a) In any project under this section let under single prime contracting, the department shall identify, as provided under par. (b), necessary mechanical, electrical, or plumbing subcontractors who are qualified responsible bidders and a general prime contractor who is submitting a bid under sub. (14) shall include the selected subcontractors.

AB40,105,10 (b) For purposes of selecting subcontractors under par. (a), the department shall develop and administer an open and public bidding process and follow the requirements and procedures under sub. (2). Within 48 hours of bid submission, the department shall make available on the department Internet site the names of the bidders and the amount of the bid. No more than 7 days after the deadline for bid submission, the department shall provide public notice of the lowest bidders who are qualified responsible bidders. The department shall make available on its Internet site the bids, including the bid documents, identified under this paragraph as the lowest bidders and they shall be open to public inspection. No other bids under this paragraph may be on the Internet site or open to public inspection.

AB40,147 Section 147. 16.855 (14) (a) of the statutes is renumbered 16.855 (14) (d) and amended to read:

AB40,105,23 16.855 (14) (d) If a project requires prior approval of the building commission under s. 13.48 (10) (a) and bids are required to be solicited under sub. (2), the department shall take both single bids and separate bids on any division of the work that it designates. If a project does not require prior approval of the building commission under s. 13.48 (10) (a) and bids are required to be solicited under sub. (2), the department may take single bids or separate bids on any division of the work that it designates. If the department awards contracts by the division of work, the department shall award the contracts according to the division of work selected for bidding. Except as provided in sub. (10m) (am), the department shall award all single prime contracts to the lowest bidder who is a qualified responsible bidder or bidders that result results in the lowest total construction cost for the project.

AB40,148 Section 148. 16.855 (14) (am) of the statutes is created to read:

AB40,106,2 16.855 (14) (am) Except as provided in s. 13.48 (19), the department shall let all construction projects that exceed $185,000 through single prime contracting.

AB40,149 Section 149. 16.855 (14) (b) of the statutes is amended to read:

AB40,106,8 16.855 (14) (b) The state is not liable to a prime contractor for damage from delay caused by another prime contractor if the department takes reasonable action to require the delaying prime contractor to comply with its contract. If the state is not liable under this paragraph, the delayed prime contractor may bring an action for damages against the delaying prime contractor.

AB40,150 Section 150 . 16.855 (14) (bm) of the statutes is created to read:

AB40,106,13 16.855 (14) (bm) If the bid is being let through single prime contracting, bidders for the general prime contractor who are responsible qualified bidders shall submit their bids to the department no later than 7 days after the successful subcontractor bids become available to the public under sub. (13) (b).

AB40,151 Section 151 . 16.855 (14) (c) of the statutes is created to read:

AB40,106,19 16.855 (14) (c) The department shall reject any bid for the general prime contractor from a bidder who submits a bid that includes contractors other than the ones selected under sub. (13) (a). The award of a contract may not be finalized until the department approves the required performance bond and certificate of insurance.

AB40,152 Section 152. 16.855 (14) (e) of the statutes is created to read:

AB40,107,4 16.855 (14) (e) Within 30 days after the deadline under par. (bm), the department shall notify the successful general prime contractor bidder of its selection. The contractor who is awarded the contract shall enter into contracts with the mechanical, electrical, or plumbing subcontractors selected under par. (13) (a) and shall comply with the requirements under sub. (14m). The department shall make the final bid results available on its Internet site at the time it provides the written, official notice to the successful general prime contractor bidder notifying the contractor that the contract is fully executed and that the contractor is authorized to begin work on the project.

AB40,153 Section 153 . 16.855 (14m) of the statutes is created to read:

AB40,107,8 16.855 (14m) (a) The department shall develop a standard contract for a general prime contractor selected under sub. (14) to use and shall include in the contract all of the following:

AB40,107,11 1. A requirement that all subcontractors selected under sub. (13) (a) provide a 100 percent performance bond and a 100 percent payment bond to the benefit of the general prime contractor as the only obligee.

AB40,107,14 2. A delineation of the responsibilities, insurance requirements, indemnification obligations, claims processes, and termination rights and protections of all subcontractors selected under sub. (13) (a).

AB40,107,15 3. A requirement that the general prime contractor is subject to s. 16.528 (2m).

AB40,107,17 4. A schedule for payment from the general prime contractor to a subcontractor that is consistent with sub. (19) (b).

AB40,107,19 (b) Neither a general prime contractor nor a subcontractor selected under sub. (13) (b) may amend a contract developed under par. (a).

AB40,154 Section 154. 16.855 (19) of the statutes is renumbered 16.855 (19) (a) and amended to read:

AB40,108,13 16.855 (19) (a) As the work progresses under any contract for construction of a project the department, from time to time, shall grant to the contractor an estimate of the amount and proportionate value of the work done, which shall entitle the contractor to receive the amount thereof, less the retainage, from the proper fund. The retainage shall be an amount equal to not more than 5% of the estimate until 50% of the work has been completed. At 50% completion, no additional amounts shall be retained, and partial payments shall be made in full to the contractor unless the architect or engineer department certifies that the job is not proceeding satisfactorily. At 50% completion or any time thereafter when the progress of the work is not satisfactory, additional amounts may be retained but in no event shall the total retainage be more than 10% of the value of the work completed. Upon substantial completion of the work, an any amount retained may shall be paid to the contractor, less the value of any required corrective work or uncompleted work. For the purposes of this section, estimates may include any fabricated or manufactured materials and components specified, previously paid for by contractor and delivered to the work or properly stored and suitable for incorporation in the work embraced in the contract.

AB40,108,14 (c) This subsection does not apply to contracts awarded under s. 16.858.

AB40,155 Section 155. 16.855 (19) (b) of the statutes is created to read: