AB40,92,322 16.75 (6) (d) If the governor or, if acting as the governor's designee, the
23secretary
determines that it is in the best interest of this state to do so, he or she may
24issue a general waiver of the requirements of subs. (1) to (5) permitting the purchase
25of specified materials, supplies, equipment, or contractual services, except printing

1and stationery, from a private source. A general waiver may be issued for any period
2up to one year. The governor or, if acting as the governor's designee, the secretary
3may impose any necessary or appropriate condition or restriction on the waiver.
AB40,118 4Section 118. 16.75 (8) (a) 1. of the statutes is amended to read:
AB40,92,115 16.75 (8) (a) 1. The department, any other designated purchasing agent under
6s. 16.71 (1)
delegated agency, any agency making purchases under s. 16.74, and each
7authority other than the University of Wisconsin Hospitals and Clinics Authority,
8the Lower Fox River Remediation Authority, and the Health Insurance
9Risk-Sharing Plan Authority shall, to the extent practicable, make purchasing
10selections using specifications developed under s. 16.72 (2) (e) to maximize the
11purchase of materials utilizing recycled materials and recovered materials.
AB40,119 12Section 119. 16.75 (9) of the statutes is amended to read:
AB40,92,1813 16.75 (9) The department, any other designated purchasing agent under s.
1416.71 (1)
delegated agency, any agency making purchases under s. 16.74, and any
15authority other than the University of Wisconsin Hospitals and Clinics Authority,
16the Lower Fox River Remediation Authority, and the Health Insurance
17Risk-Sharing Plan Authority shall, to the extent practicable, make purchasing
18selections using specifications prepared under s. 16.72 (2) (f).
AB40,120 19Section 120. 16.75 (10e) (a) of the statutes is amended to read:
AB40,92,2220 16.75 (10e) (a) In this subsection, "energy consuming equipment" means any
21equipment that is designed for heating, ventilation, air conditioning, water heating
22or cooling, lighting, or refrigeration, or any other function, and that consumes energy.
AB40,121 23Section 121. 16.75 (10e) (b) of the statutes is amended to read:
AB40,93,1724 16.75 (10e) (b) If s. 16.855 (10s) (a) provides an applicable standard for the type
25of agency energy consuming equipment being purchased and the purchase will cost

1more than $5,000 per unit the department, any other designated purchasing agent
2under s. 16.71 (1)
delegated agency, any agency making purchases under s. 16.74,
3and any authority may not purchase that type of energy consuming equipment
4unless the specifications for the equipment meet the applicable standards. If there
5is an applicable standard under s. 16.855 (10s) (a), but the energy consuming
6equipment meeting that standard is not reasonably available, the department,
7purchasing agent delegated agency, agency, or authority shall ensure, for purchases
8over $5,000 per unit, that the energy consuming equipment that is purchased
9maximizes energy efficiency to the extent technically and economically feasible. The
10department, purchasing agent delegated agency, agency, or authority shall not
11determine that energy consuming equipment that meets the applicable standard
12under s. 16.855 (10s) (a) either is not reasonably available on the basis of cost alone
13or is not cost-effective unless the difference in the cost of the purchase and
14installation of the equipment that meets the standard and the equipment that would
15otherwise be installed is greater than the difference in the cost of operating the
16equipment that meets the standard and the equipment that would otherwise be
17installed over the anticipated life of the equipment.
AB40,122 18Section 122. 16.75 (10m) of the statutes is amended to read:
AB40,93,2419 16.75 (10m) The department, any other designated purchasing agent under s.
2016.71 (1)
delegated agency, any agency making purchases under s. 16.74, and any
21authority shall not enter into any contract or order for the purchase of materials,
22supplies, equipment, or contractual services with a person if the name of the person,
23or the name of an affiliate of that person, is certified to the department by the
24secretary of revenue under s. 77.66.
AB40,123 25Section 123. 16.84 (1) of the statutes is amended to read:
AB40,94,12
116.84 (1) Have charge of, operate, maintain and keep in repair the state capitol
2building, the executive residence, the light, heat and power plant, any heating,
3cooling, and power plants serving state properties that are not operated by an agency,
4as defined in s. 16.52 (7), or by a purchaser, lessee, or contractor under s. 13.48 (14)
5or 16.848 (1),
the state office buildings and their power plants, the grounds connected
6therewith, and such other state properties as are designated by law. All costs of such
7operation and maintenance shall be paid from the appropriations under s. 20.505 (5)
8(ka) and (kb), except for debt service costs paid under s. 20.866 (1) (u). The
9department shall transfer moneys from the appropriation under s. 20.505 (5) (ka) to
10the appropriation account under s. 20.505 (5) (kc) sufficient to make principal and
11interest payments on state facilities and payments to the United States under s.
1213.488 (1) (m).
AB40,124 13Section 124. 16.848 (title) of the statutes is amended to read:
AB40,94,15 1416.848 (title) Sale, lease, or contractual operation of certain state
15property
or facilities.
AB40,125 16Section 125. 16.848 (1) of the statutes is amended to read:
AB40,95,1917 16.848 (1) Except as provided in sub. (2), the department may offer for sale or
18lease
any state-owned real property, if the department determines that the sale or
19lease
is in the best interest of the state, unless prohibited under the state or federal
20constitution or federal law or the sale is conducted as a part of a procedure to enforce
21an obligation to this state
. Any sale may be either on the basis of public bids, with
22the department reserving the right to reject any bid in the best interest of the state,
23or on the basis of negotiated prices as determined through a competitive or
24transparent process
. If the department receives an offer to purchase property offered
25under this subsection, the department may submit a report to the building

1commission recommending acceptance of the offer. The report shall contain a
2description of the property and the reasons for the recommendation. The
3department may recommend the sale of a parcel of property with or without the
4approval of the agency, as defined in s. 16.52 (7), having jurisdiction of over the
5property and regardless of whether the property is included in an inventory
6submitted under s. 13.48 (14) (d)
. If the building commission approves the proposed
7sale, the department may sell the property. Except with respect to property
8identified in sub. (2), if any agency, as defined in s. 16.52 (7), has authority to sell or
9lease real property under any other law, the authority of that agency does not apply
10after the department notifies the agency in writing that an offer of sale or sale, or a
11lease agreement, is pending with respect to the property under this subsection. If
12the sale or lease is not completed and no further action is pending with respect to the
13property, the authority of the agency to sell or lease the property is restored. If the
14department sells or leases any state-owned real property under this subsection, the
15department may attach such conditions to the sale or lease as it finds to be necessary
16or appropriate to carry out the sale or lease in the best interest of the state. If the
17department sells or leases a state-owned heating, cooling, or power plant under this
18subsection, the department may contract with the purchaser or lessee for the
19operation of the plant.
AB40,126 20Section 126. 16.848 (1e) of the statutes is created to read:
AB40,96,521 16.848 (1e) If the department sells, leases, or contracts with a purchaser or
22lessee for the operation of any real property under sub. (1) that was under the
23jurisdiction of an agency, as defined in s. 16.52 (7), prior to the sale, lease, or contract,
24the agency shall convey all systems, fixtures, or additional property interests
25specified by the department to the purchaser or lessee of the property on terms

1specified by the department. If the department sells, leases, or contracts with a
2purchaser or lessee for the operation of a state-owned heating, cooling, or power
3plant that is under the jurisdiction of an agency, as defined in s. 16.52 (7), the agency
4shall convey all real and personal property associated with the plant to the purchaser
5or lessee on terms specified by the department.
AB40,127 6Section 127. 16.848 (1m) of the statutes is created to read:
AB40,96,107 16.848 (1m) If any property that is proposed to be sold by the department under
8sub. (1) is co-owned by a nonstate entity, the department shall afford to that entity
9the right of first refusal to purchase the share of the property owned by the state on
10reasonable financial terms established by the department.
AB40,128 11Section 128. 16.848 (1s) of the statutes is created to read:
AB40,96,1812 16.848 (1s) (a) If the department sells, leases, or contracts with a purchaser or
13lessee for the operation of any facility under sub. (1) that is operated by an agency,
14as defined in s. 16.52 (7), on the day prior to the effective date of the sale, lease, or
15contract, the secretary shall, notwithstanding s. 16.50 (1), require submission of
16expenditure estimates for approval under s. 16.50 (2) for each agency that proposes
17to expend moneys from any appropriation for the operation of the facility during the
18fiscal biennium in which the facility is sold or leased or operated under contract.
AB40,97,519 (b) Notwithstanding s. 16.50 (2), the secretary shall disapprove any such
20estimate for the period during which the facility is not operated by the agency. The
21secretary may then require the use of the amounts of any disapproved expenditure
22estimates for the purpose of purchase of contractual services from the facility or
23payment of the costs of purchasing services that were provided by the facility from
24an alternative source. If the department sells, leases, or contracts for the operation
25of a facility under this subsection, the secretary may identify any full-time

1equivalent positions authorized for the agency that was operating the facility the
2duties of which primarily relate to the management or operation of the facility, and
3may decrease the authorized full-time equivalent positions for the agency by the
4number of positions so identified effective on the effective date of the sale, lease, or
5contract.
AB40,97,136 (c) Notwithstanding s. 20.001 (3) (a) to (c), the secretary may lapse or transfer
7to the general fund from the unencumbered balance of appropriations to any agency,
8other than sum sufficient appropriations or appropriations of program revenues to
9the Board of Regents of the University of Wisconsin System or appropriations of
10segregated or federal revenues, any amount appropriated to an agency that is
11determined by the secretary to be allocated for the management or operation of the
12facility that was sold or leased or operated under contract effective on the effective
13date of the sale, lease, or contract.
AB40,97,1514 (d) The secretary shall report any action taken under this subsection to the
15cochairpersons of the joint committee on finance.
AB40,129 16Section 129. 16.848 (2) (a) of the statutes is repealed.
AB40,130 17Section 130. 16.848 (2) (b) of the statutes is repealed.
AB40,131 18Section 131. 16.848 (2) (gw) of the statutes is repealed.
AB40,132 19Section 132. 16.848 (4) (a) of the statutes is amended to read:
AB40,98,1520 16.848 (4) (a) Except as provided in s. 13.48 (14) (e), if there is any outstanding
21public debt used to finance the acquisition, construction, or improvement of any
22property that is sold or leased under sub. (1), the department shall deposit a
23sufficient amount of the net proceeds from the sale or lease of the property in the bond
24security and redemption fund under s. 18.09 to repay the principal and pay the
25interest on the debt, and any premium due upon refunding any of the debt. If there

1is any outstanding public debt used to finance the acquisition, construction, or
2improvement of any property that is sold or leased under sub. (1), the department
3shall then provide a sufficient amount of the net proceeds from the sale or lease of
4the property for the costs of maintaining federal tax law compliance applicable to the
5debt
. If the property was acquired, constructed, or improved with federal financial
6assistance, the department shall pay to the federal government any of the net
7proceeds required by federal law. If the property was acquired by gift or grant or
8acquired with gift or grant funds, the department shall adhere to any restriction
9governing use of the proceeds. Except as required under ss. 13.48 (14) (e), 20.395 (9)
10(qd), and 51.06 (6), if there is no such debt outstanding, there are no moneys payable
11to the federal government, and there is no restriction governing use of the proceeds,
12and if the net proceeds exceed the amount required to be deposited, paid, or used for
13another purpose under this paragraph subsection, the department shall use the net
14proceeds or remaining net proceeds to pay principal and interest costs on other
15outstanding public debt.
AB40,133 16Section 133. 16.848 (4) (b) 1. of the statutes is repealed and recreated to read:
AB40,98,1917 16.848 (4) (b) 1. To the extent that debt service on the property being sold or
18leased was paid from a segregated fund, other outstanding public debt related to that
19segregated fund should be redeemed.
AB40,134 20Section 134. 16.848 (4) (b) 2. of the statutes is repealed.
AB40,135 21Section 135. 16.848 (4) (b) 3. of the statutes is amended to read:
AB40,98,2522 16.848 (4) (b) 3. The extent to which general obligation debt that was issued
23to acquire, build, or improve the property being sold or leased is subject to current
24optional redemption, would require establishment of an escrow, or could be assigned
25for accounting purposes to another statutory bond purpose.
AB40,136
1Section 136. 16.848 (4) (b) 5. of the statutes is amended to read:
AB40,99,32 16.848 (4) (b) 5. The costs of maintaining federal tax law compliance in the
3selection of general obligation debt to be redeemed.
AB40,137 4Section 137. 16.848 (4) (c) of the statutes is created to read:
AB40,99,255 16.848 (4) (c) If there are any outstanding revenue obligations, issued pursuant
6to subch. II of ch. 18, used to finance the acquisition, construction, or improvement
7of any property that is sold or leased under sub. (1), the department shall deposit a
8sufficient amount of the net proceeds from the sale or lease of the property in the
9respective redemption fund provided under s. 18.561 (5) or 18.562 (3) to repay the
10principal and pay the interest on the revenue obligations, and any premium due upon
11refunding any of the revenue obligations. If there are any outstanding revenue
12obligations, issued pursuant to subch. II of ch. 18, used to finance the acquisition,
13construction, or improvement of any property that is sold or leased under sub. (1),
14the department shall then provide a sufficient amount of the net proceeds from the
15sale or lease of the property for the costs of maintaining federal tax law compliance
16applicable to the revenue obligations. For the purpose of paying principal and
17interest costs on other outstanding revenue obligations, the secretary may cause
18outstanding revenue obligations to be called for redemption on or following their
19optional redemption date, establish one or more escrow accounts to redeem
20obligations at their optional redemption date, or purchase bonds on the open market.
21Except as required under ss. 13.48 (14) (e), 20.395 (9) (qd), and 51.06 (6), if the net
22proceeds exceed the amount required to be deposited, paid, or used for another
23purpose under this paragraph, the department shall use the net proceeds or
24remaining net proceeds to pay principal and interest costs on other similar revenue
25obligations.
AB40,138
1Section 138. 16.849 of the statutes is created to read:
AB40,100,5 216.849 Facility design services for state agencies. The department may
3provide facility design services to agencies, as defined in s. 16.70 (1e). The
4department may assess a fee to agencies for which the department performs services
5under this section.
AB40,139 6Section 139. 16.855 (1) of the statutes is renumbered 16.855 (1m) and
7amended to read:
AB40,100,138 16.855 (1m) The department shall let by contract to the lowest qualified
9responsible bidder all construction work when the estimated construction cost of the
10project exceeds $50,000, except for construction work authorized under s. 16.858 and
11except as provided in sub. (1r) or (10m) or s. 13.48 (19). If factors other than dollar
12amounts are required to be evaluated for a project, the department shall specify a
13formula that will convert the other factors into a dollar value for comparison.
AB40,100,21 14(1r) If a bidder is not a Wisconsin firm and the department determines that the
15state, foreign nation or subdivision thereof in which the bidder is domiciled grants
16a preference to bidders domiciled in that state, nation or subdivision in making
17governmental purchases, the department shall give a preference over that bidder to
18Wisconsin firms, if any, when awarding the contract, in the absence of compelling
19reasons to the contrary. The department may enter into agreements with states,
20foreign nations and subdivisions thereof for the purpose of implementing this
21subsection.
AB40,140 22Section 140. 16.855 (1g) of the statutes is created to read:
AB40,100,2323 16.855 (1g) In this section:
AB40,101,3
1(a) "Mechanical, electrical, or plumbing subcontractor" is a contractor that
2performs mechanical, electrical, plumbing, or fire protection work and enters into a
3contract with a general prime contractor to perform their division of work.
AB40,101,54 (b) "Qualified bidder" means a person that the department certifies under sub.
5(9m) (b) 1.
AB40,101,76 (c) "Qualified responsible bidder" means a person who is a qualified bidder and
7who is a responsible bidder.
AB40,101,98 (d) "Responsible bidder" means a person that the department certifies under
9sub. (9m) (b) 2.
AB40,101,1310 (e) "Single prime contracting" means bidding and contracting through a
11process in which only a general prime contractor has a contractual relationship with
12the state and all mechanical, electrical, or plumbing subcontractors are selected by
13department and are subcontractors to the general prime contractor.
AB40,141 14Section 141. 16.855 (2) (a) 5. of the statutes is amended to read:
AB40,101,1515 16.855 (2) (a) 5. Date, when and place where plans will be available.
AB40,142 16Section 142. 16.855 (2) (a) 6. of the statutes is created to read:
AB40,101,1817 16.855 (2) (a) 6. That the department shall consider only bids from persons who
18are responsible bidders and, unless sub. (9m) (ar) 2. applies, qualified bidders.
AB40,143 19Section 143. 16.855 (9) of the statutes is renumbered 16.855 (9m) (b) 1. c. and
20amended to read:
AB40,101,2521 16.855 (9m) (b) 1. c. The If the department may require bidders to submit so
22requires or the bidder will be considered unqualified, the bidder has submitted a

23sworn statements statement as to financial ability, equipment, and experience in
24construction and require such other information as may be necessary to determine
25their the bidder's competency.
AB40,144
1Section 144 . 16.855 (9m) of the statutes is created to read:
AB40,102,22 16.855 (9m) (ag) In this subsection, "bidder" includes a potential bidder.
AB40,102,113 (ar) 1. The department shall certify bidders as qualified bidders under par. (b)
41. and responsible bidders under par. (b) 2. and shall administer a registration
5process for all bidders submitting bids on any construction project under this section.
6The department shall issue, in a timely manner, a certification decision on a complete
7application for certification. A certification under this subdivision is valid for 2 years
8except the department may decertify a bidder if the department determines that the
9bidder no longer meets the qualifications under par. (b) and if the department follows
10a decertification process developed by rule that provides to the bidder notice,
11hearing, and a means to appeal.
AB40,102,1412 2. Notwithstanding sub. (1m) or (14) (e), the department may waive the
13condition of certification as a qualified bidder if the project is of such magnitude as
14to limit competition if the conditions under par. (b) 1. were required.
AB40,102,2015 3. The department shall consider for certification under par. (b) associations
16consisting of at least 2 contracting firms that are organized for the purpose of
17entering into a construction contract as a single entity if at least one of the
18contracting firms is qualified under par. (b) and if the assignment of, and provisions
19for the continuity of, the various responsibilities within the association are agreed
20upon before the contract is awarded.
AB40,102,2221 (b) 1. To be certified as a qualified bidder, a bidder must meet all of the following
22conditions:
AB40,103,223 a. The bidder has completed at least one project that involved similar work to
24the work being bid and the project was at least 50 percent of the size or value of the
25division of the project being bid. If the department determines that more experience

1is necessary for a particular project, the department may include additional
2requirements in the specifications and certify bidders accordingly.
AB40,103,53 b. The bidder has access to all necessary equipment and the organizational
4capacity and technical competence necessary to perform the project work properly
5and expeditiously.
AB40,103,76 2. To be certified as a responsible bidder, a bidder must meet all of the following
7conditions:
AB40,103,88 a. The bidder maintains a permanent place of business.
AB40,103,129 b. The bidder submits a sworn statement, upon the department's request, that
10indicates that the bidder has adequate financial resources to complete the work
11being bid, taking into account any other work the bidder is currently under contract
12to complete.
AB40,103,1313 c. The bidder is bondable for the term of the proposed contract.
AB40,103,2114 d. The bidder has a record of satisfactorily completing projects. In determining
15this factor, the department shall consider if the bidder has completed all contracts
16in accordance with drawings and specifications; diligently pursued execution of the
17work and completed contracts according to the time schedule, taking account of
18extensions granted; fulfilled guarantee requirements of contracts; if the contract
19included an affirmative action program requirement, complied with the
20requirement; and, if the contract included a safety program requirement, complied
21with the requirement.
AB40,103,2422 e. The bidder is not on an ineligible list that the department maintains under
23s. 16.705 (9) or 16.765 (9) or on a list that another agency maintains for persons who
24violated construction-related statutes or administrative rules.
AB40,103,2525 f. The bidder has been in business for at least 12 months.
AB40,104,1
1g. The bidder is a legal entity and authorized to do business in Wisconsin.
AB40,104,32 h. The bidder has performed at least one other public project for a government
3entity.
AB40,104,54 i. The bidder can provide information, upon request, to the department on the
5bidder's ownership, management, and control.
AB40,104,86 j. In any jurisdiction, the bidder, in the previous 10 years, has not been debarred
7from any government contracts and has not been found to have committed tax
8avoidance or evasion.
AB40,104,129 k. In any jurisdiction, in the previous 10 years, the bidder has not been
10disciplined under a professional license and none of the bidder's employees and no
11member of the bidder's organization has been disciplined under a professional
12license.
AB40,145 13Section 145. 16.855 (10m) (am) 3. of the statutes is amended to read:
AB40,104,1814 16.855 (10m) (am) 3. The department may award any contract to a minority
15business or disabled veteran-owned business, or a business that is both a minority
16business and a disabled veteran-owned business, that if the business is a qualified
17responsible bidder and the business
submits a qualified responsible bid that is no
18more than 5 percent higher than the apparent low bid.
AB40,146 19Section 146. 16.855 (13) of the statutes is repealed and recreated to read:
AB40,104,2420 16.855 (13) (a) In any project under this section let under single prime
21contracting, the department shall identify, as provided under par. (b), necessary
22mechanical, electrical, or plumbing subcontractors who are qualified responsible
23bidders and a general prime contractor who is submitting a bid under sub. (14) shall
24include the selected subcontractors.
AB40,105,10
1(b) For purposes of selecting subcontractors under par. (a), the department
2shall develop and administer an open and public bidding process and follow the
3requirements and procedures under sub. (2). Within 48 hours of bid submission, the
4department shall make available on the department Internet site the names of the
5bidders and the amount of the bid. No more than 7 days after the deadline for bid
6submission, the department shall provide public notice of the lowest bidders who are
7qualified responsible bidders. The department shall make available on its Internet
8site the bids, including the bid documents, identified under this paragraph as the
9lowest bidders and they shall be open to public inspection. No other bids under this
10paragraph may be on the Internet site or open to public inspection.
AB40,147 11Section 147. 16.855 (14) (a) of the statutes is renumbered 16.855 (14) (d) and
12amended to read:
AB40,105,2313 16.855 (14) (d) If a project requires prior approval of the building commission
14under s. 13.48 (10) (a) and bids are required to be solicited under sub. (2), the
15department shall take both single bids and separate bids on any division of the work
16that it designates. If a project does not require prior approval of the building
17commission under s. 13.48 (10) (a) and bids are required to be solicited under sub.
18(2), the department may take single bids or separate bids on any division of the work
19that it designates. If the department awards contracts by the division of work, the
20department shall award the contracts according to the division of work selected for
21bidding.
Except as provided in sub. (10m) (am), the department shall award all
22single prime contracts to the lowest bidder who is a qualified responsible bidder or
23bidders
that result results in the lowest total construction cost for the project.
AB40,148 24Section 148. 16.855 (14) (am) of the statutes is created to read:
AB40,106,2
116.855 (14) (am) Except as provided in s. 13.48 (19), the department shall let
2all construction projects that exceed $185,000 through single prime contracting.
AB40,149 3Section 149. 16.855 (14) (b) of the statutes is amended to read:
AB40,106,84 16.855 (14) (b) The state is not liable to a prime contractor for damage from
5delay caused by another prime contractor if the department takes reasonable action
6to require the delaying prime contractor to comply with its contract. If the state is
7not liable under this paragraph, the delayed prime contractor may bring an action
8for damages against the delaying prime contractor.
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