LRB-1856/3
TK/JTK/CH/AG/MS/RC:lxk&bx:rs
2007 - 2008 LEGISLATURE
March 11, 2008 - Introduced by Representatives Sherman, Musser, Turner,
Sinicki, Hraychuck, Berceau, A. Williams, Townsend, Boyle, Hahn
and
Kreuser, cosponsored by Senators Kreitlow and Lehman. Referred to
Committee on Jobs and The Economy.
AB924,2,9 1An Act to renumber 18.16 (2), 18.16 (3), 18.16 (4), 18.16 (5), 18.64 (2), 18.64 (3),
218.64 (4), 18.64 (5), 18.77 (2), 18.77 (3), 18.77 (4), 18.77 (5), 85.25 (2) (c) 1. and
32., 229.46 (1) (a), 229.70 (1) (a) and 229.845 (1) (a); to renumber and amend
416.75 (3m) (a), 16.75 (3m) (b), 16.75 (3m) (c) 2., 16.75 (3m) (c) 5., 16.855 (10m)
5(a), 16.87 (2), 84.075 (1) and 200.57 (1); to amend 16.75 (3m) (c) 1., 16.75 (3m)
6(c) 3., 16.75 (3m) (c) 4., 16.855 (10m) (b), 16.855 (10m) (c), 16.855 (14) (a), 18.16
7(title), 18.16 (6), 18.64 (title), 18.64 (6), 18.77 (title), 18.77 (6), 23.41 (6), 25.185
8(title), 25.185 (3), 84.075 (title), 84.075 (2), 84.075 (3), 85.25 (2) (c) (intro.),
9200.57 (title), 229.46 (2) (intro.), 229.46 (3) (intro.), 229.70 (title), 229.70 (2),
10229.70 (3) (intro.), 229.70 (4), 229.70 (4m), 229.70 (5) (b) 1., 229.70 (5) (b) 2.,
11229.70 (5) (b) 3., 229.8273 (title), 229.8273 (2), 229.8273 (3), 229.8273 (4),
12229.8273 (5) (b) 1., 229.8273 (5) (b) 2., 229.8273 (5) (b) 3., 229.8273 (6), 229.845
13(title) and 229.845 (2); to repeal and recreate 18.16 (1), 18.64 (1), 18.77 (1) and
1425.185 (1); and to create 16.75 (3m) (a) 1., 2. and 3., 16.75 (3m) (b) 2., 16.75 (3m)

1(c) 2. b. and d., 16.75 (3m) (c) 5. b., 16.855 (10m) (ac), 16.855 (10m) (am) 2., 16.87
2(1) (am), 16.87 (2) (c), 18.16 (2) (b), 18.16 (3) (b), 18.16 (4) (b), 18.16 (5) (b), 18.64
3(2) (b), 18.64 (3) (b), 18.64 (4) (b), 18.64 (5) (b), 18.77 (2) (b), 18.77 (3) (b), 18.77
4(4) (b), 18.77 (5) (b), 84.075 (1c), 84.075 (1m) (b), 85.25 (2) (c) 2m., 200.57 (1) (a),
5200.57 (3), 229.46 (1) (ag), 229.70 (1) (ag), 229.8273 (1) (am), 229.845 (1) (ag),
6231.29, 234.36 and 560.033 of the statutes; relating to: awarding state
7procurements to certified disabled veteran-owned businesses, providing an
8exemption from emergency rule procedures, and requiring the exercise of
9rule-making authority.
Analysis by the Legislative Reference Bureau
Currently, minority-owned businesses that are certified by the Department of
Commerce receive certain preferences in governmental procurement. State agencies
must attempt to ensure that 5 percent of the total amount expended for state
procurements in each fiscal year is paid to minority-owned businesses. With the
exception of non-highway construction work and certain other limited exceptions,
state agencies that are subject to requirements to make purchases through
competitive bidding or competitive sealed proposals may accept a bid or proposal
from a minority-owned business that is no more than 5 percent higher than the
apparent low bid or most advantageous proposal. Unless the secretary of
administration reports to the Joint Committee on Finance the reasons for not doing
so, the Building Commission must ensure that at least 6 percent of the total
long-term state public debt, revenue bonding, and short-term borrowing in each
fiscal year is underwritten by minority-owned investment firms. The Investment
Board must attempt to ensure that 5 percent of the total funds it expends for
financial and investment analysis and for common stock and convertible bond
brokerage commissions in each fiscal year is expended for the services of
minority-owned financial advisers or minority-owned investment firms.
In addition, metropolitan sewerage commissions serving metropolitan
sewerage districts that encompass first class cities, presently only Milwaukee, must
attempt to ensure that 5 percent of that total funds expended for financial and
investment analysis and for common stock and convertible bond brokerage
commissions in each fiscal year is expended for the services of minority-owned
financial advisers or minority-owned investment firms. Current law contracting
provisions that apply to special purpose districts (local exposition districts,
professional baseball park districts, professional football stadium districts, and
cultural arts districts) also contain provisions that relate to minority and women

hiring and contracting. Generally, persons awarded contracts for local exposition
districts must agree that at least 25 percent of the employees hired because of the
contracts will be minority group members; at least 5 percent of the employees hired
will be women; at least 25 percent of the aggregate dollar value of certain contracts
will be awarded to minority businesses; and at least 5 percent of of the aggregate
dollar value of certain contracts will be awarded to women's business. In the case
of the other special districts, the minority and women contracting provisions are
goals, which generally include the same participation percentages, except that the
participation percentages for minority group members is 15 percent for football
stadium districts and cultural arts districts.
This bill creates similar preferences in awarding state contracts or orders to
disabled veteran-owned businesses certified by the Department of Commerce
(Commerce). The bill does not, however, create any goals for total amounts or
percentages of state contracts or orders to be awarded to these businesses. The bill
defines a disabled veteran as a veteran who, at the time of application for
certification, is a resident of the state and is in receipt of an award from the U.S.
Department of Veterans Affairs of a disability rating of at least 30 percent.
Under the bill, Commerce must certify a business, financial adviser, or
investment firm that meets all of the following requirements:
1. One or more disabled veterans owns not less than 51 percent of the business,
financial adviser, or investment firm or, if the business, financial adviser, or
investment firm is publicly owned, 51 percent of the stock.
2. One or more disabled veterans or duly authorized representatives of the
disabled veteran controls the management and daily business operations of the
business, financial adviser, or investment firm.
3. The business, financial adviser, or investment firm has its principal place of
business in this state.
4. The business, financial adviser, or investment firm is performing a useful
business function. Useful business function is defined under the bill as the provision
of materials, supplies, equipment, or services to customers, including the state.
Commerce may decertify any business, financial adviser, or investment firm
that Commerce determines no longer qualifies for certification. The bill establishes
an appeal process for businesses, financial advisers, or investment firms decertified
by Commerce.
The bill directs the Department of Administration (DOA) to annually report to
the appropriate standing committees of the legislature concerning the total amount
of money and the percentage of the total amount of money paid to, and the percentage
of the total amount of indebtedness underwritten by disabled veteran-owned
businesses, financial advisers, and investment firms. In addition, the bill directs
DOA to report to the same committees, no later than March 31 of the fourth year
beginning after the year in which the bill becomes law concerning DOA's
recommendations for either a goal consisting of a percentage of the total amount of
money that will be paid annually to disabled veteran-owned businesses, financial
advisers, and investment firms by state agencies or a goal consisting of an annual
percentage increase in the total amount of money that will be paid to disabled

veteran-owned businesses, financial advisers, and investment firms by state
agencies during at least the first full five-year period that follows the date of the
report. In calculating all amounts paid to and percentages of amounts paid to
businesses and firms, DOA is directed to exclude any contracts or purchases for
which a purchase preference would violate a federal law or regulation or any contract
between a state agency and a federal agency, or would result in a reduction in the
amount of federal aids received by this state.
DOT administers a disadvantaged business mobilization assistance program,
a loan guarantee program created to assist disadvantaged businesses in obtaining
capital to participate in DOT construction contracts. Under the program, DOT may
make grants to provide funding for these loan guarantees. This bill makes disabled
veteran-owned businesses eligible for this program.
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:
AB924, s. 1 1Section 1. 16.75 (3m) (a) of the statutes is renumbered 16.75 (3m) (a) (intro.)
2and amended to read:
AB924,4,33 16.75 (3m) (a) (intro.) In this subsection, "minority:
AB924,4,5 44. "Minority business" means a business certified by the department of
5commerce under s. 560.036 (2).
AB924, s. 2 6Section 2. 16.75 (3m) (a) 1., 2. and 3. of the statutes are created to read:
AB924,4,87 16.75 (3m) (a) 1. "Disabled veteran-owned business" means a business that is
8certified by the department of commerce under s. 560.033 (3).
AB924,4,109 2. "Disabled veteran-owned financial adviser" means a financial adviser
10certified by the department of commerce under s. 560.033 (3).
AB924,4,1211 3. "Disabled veteran-owned investment firm" means an investment firm
12certified by the department of commerce under s. 560.033 (3).
AB924, s. 3 13Section 3. 16.75 (3m) (b) of the statutes is renumbered 16.75 (3m) (b) 1. and
14amended to read:
AB924,5,3
116.75 (3m) (b) 1. The department and any agency making purchases under s.
216.74 shall attempt to ensure that 5% 5 percent of the total amount expended under
3this subchapter in each fiscal year is paid to minority businesses.
AB924,5,13 43. Except as provided under sub. (7), the department may purchase materials,
5supplies, equipment, and contractual services from any minority business or
6disabled veteran-owned business
submitting a qualified responsible competitive bid
7that is no more than 5% 5 percent higher than the apparent low bid or competitive
8proposal that is no more than 5% 5 percent higher than the most advantageous offer
9proposal. In administering the preference for minority businesses or disabled
10veteran-owned businesses
established in this paragraph, the department and any
11agency making purchases under s. 16.74 shall maximize the use of minority
12businesses or disabled veteran-owned businesses which are incorporated under ch.
13180 or which have their principal place of business in this state.
AB924, s. 4 14Section 4. 16.75 (3m) (b) 2. of the statutes is created to read:
AB924,5,1715 16.75 (3m) (b) 2. The department and any agency making purchases under s.
1616.74 shall make efforts to ensure that a portion of the total amount expended under
17this subchapter in each fiscal year is paid to disabled veteran-owned businesses.
AB924, s. 5 18Section 5. 16.75 (3m) (c) 1. of the statutes is amended to read:
AB924,5,2219 16.75 (3m) (c) 1. After completing any contract under this subchapter, the
20contractor shall report to the agency that awarded the contract any amount of the
21contract that was subcontracted to minority businesses and any amount of the
22contract that was subcontracted to disabled veteran-owned businesses
.
AB924, s. 6 23Section 6. 16.75 (3m) (c) 2. of the statutes is renumbered 16.75 (3m) (c) 2.
24(intro.) and amended to read:
AB924,6,3
116.75 (3m) (c) 2. Each agency shall report to the department at least
2semiannually, or more often if required by the department, the all of the following
3for the reporting period specified by the department:
AB924,6,5 4a. The total amount of money it has expended for contracts and orders awarded
5to minority businesses and the.
AB924,6,7 6c. The number of contacts with minority businesses in connection with
7proposed purchases.
AB924, s. 7 8Section 7. 16.75 (3m) (c) 2. b. and d. of the statutes are created to read:
AB924,6,119 16.75 (3m) (c) 2. b. The total amount of money and the percentage of the total
10amount of money it has expended for contracts and orders awarded to disabled
11veteran-owned businesses.
AB924,6,1312 d. The number of contacts with disabled veteran-owned businesses in
13connection with proposed purchases.
AB924, s. 8 14Section 8. 16.75 (3m) (c) 3. of the statutes is amended to read:
AB924,6,1915 16.75 (3m) (c) 3. The department shall maintain and annually publish data on
16state purchases from minority businesses and on state purchases from disabled
17veteran-owned businesses
, including amounts expended and the percentage of total
18expenditures awarded to minority businesses and amounts expended and the
19percentage of total expenditures awarded to disabled veteran-owned businesses
.
AB924, s. 9 20Section 9. 16.75 (3m) (c) 4. of the statutes is amended to read:
AB924,7,1321 16.75 (3m) (c) 4. The department shall annually prepare and submit a report
22to the governor and to the chief clerk of each house of the legislature, for distribution
23to the appropriate standing committees under s. 13.172 (3), on the total amount of
24money paid to and the amount of indebtedness or other obligations underwritten by
25minority businesses, minority financial advisers and, minority investment firms,

1disabled veteran-owned businesses, disabled veteran-owned financial advisers,
2and disabled veteran-owned investment firms
under the requirements of this
3subsection and ss. 16.855 (10m), 16.87 (2), 25.185, 84.075 and 565.25 (2) (a) 3. and
4on this state's progress toward achieving compliance with par. (b) and ss. 16.855
5(10m) (a) (am) and (10n), 16.87 (2), 25.185, and 84.075 (1) (1m). The report shall also
6include the percentage of the total amount of money paid to and the percentage of
7the total amount of indebtedness or other obligations underwritten by disabled
8veteran-owned businesses, disabled veteran-owned financial advisers, and
9disabled veteran-owned investment firms. In calculating the percentages to be
10reported under this subsection, the department shall exclude any purchase or
11contract for which a preference would violate any federal law or regulation or any
12contract between an agency and a federal agency or any contract that would result
13in a reduction in the the amount of federal aids received by this state
.
AB924, s. 10 14Section 10. 16.75 (3m) (c) 5. of the statutes is renumbered 16.75 (3m) (c) 5. a.
15and amended to read:
AB924,7,2016 16.75 (3m) (c) 5. a. In determining whether a purchase, contract or subcontract
17complies with the goal established under par. (b) 1. or s. 16.855 (10m) (am) 1., 16.87
18(2) (b), or 25.185 (2) (a), the department shall include only amounts paid to minority
19businesses, minority financial advisers and minority investment firms certified by
20the department of commerce under s. 560.036 (2).
AB924, s. 11 21Section 11. 16.75 (3m) (c) 5. b. of the statutes is created to read:
AB924,7,2522 16.75 (3m) (c) 5. b. In determining whether a purchase, contract, or subcontract
23is made with a disabled veteran-owned business, the department shall include only
24amounts paid to disabled veteran-owned businesses certified by the department of
25commerce under s. 560.033 (3).
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