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LRB-3884/1
ZDW/EVM/RAC/MED:all
2017 - 2018 LEGISLATURE
July 26, 2017 - Introduced by Representatives Sanfelippo, Hutton, Allen,
August, Bernier, Born, Brandtjen, E. Brooks, R. Brooks, Duchow,
Felzkowski, Gannon, Jacque, Jagler, Jarchow, Katsma, Kleefisch, Knodl,
Kooyenga, Kremer, Kuglitsch, Kulp, Murphy, Neylon, Ott, Petersen,
Quinn, Schraa, Skowronski, Stafsholt, Tauchen, Tittl, Tusler, Vorpagel,
Weatherston, Wichgers and Zimmerman, cosponsored by Senators Kapenga,
Craig, Darling, Feyen, Lasee, LeMahieu, Nass, Stroebel, Tiffany,
Wanggaard and Vukmir. Referred to Committee on Transportation.
AB456,2,2 1An Act to repeal 16.856, 19.36 (12), 84.062, 84.41 (3), 106.04, 111.322 (2m) (c)
2and 946.15; to renumber 84.06 (1) (b); to renumber and amend 84.06 (1) (a);
3to amend 19.36 (3), 20.395 (2) (fx), 20.395 (3) (cq), 20.395 (3) (cx), 20.765 (3)
4(ka), 43.17 (9) (a), 59.20 (3) (a), 59.52 (29) (a), 62.03 (1), 62.15 (1), 66.0903 (1)
5(c), 66.0903 (1) (f), 66.0903 (1) (g), 66.0903 (1) (j), 66.0907 (3) (d), 66.1103 (11)
6(b) 1., 84.06 (2) (a), 103.503 (1) (a), 103.503 (1) (c), 103.503 (1) (e), 103.503 (1)
7(g), 103.503 (2), 103.503 (3) (a) 2., 109.09 (1), 111.322 (2m) (d), 230.13 (1) (intro.),
8233.13 (intro.), 341.35 (1) and 978.05 (6) (a); and to create 13.94 (3m), 20.395
9(2) (fq), 59.52 (29) (c), 60.47 (2m), 62.15 (1m), 66.0901 (1m) (c), 84.06 (1) (c), 84.06
10(1) (d), 84.06 (1) (e), 84.06 (1) (f), 84.06 (1) (g), 84.06 (2m), 84.54, 86.35, 103.503
11(1) (fm), 103.503 (1) (j) and 341.35 (1m) of the statutes; relating to: alternative
12highway project delivery methods; prevailing wage for public works projects;
13municipal approval of highway roundabouts; local referendum imposing a

1wheel tax; funding for and audit of the Department of Transportation; granting
2rule-making authority; and making appropriations.
Analysis by the Legislative Reference Bureau
Alternative project delivery methods
This bill authorizes the Department of Transportation and cities, villages,
towns, counties, and technical colleges (governmental units) to use alternate
methods for delivering projects.
Under current law, the design and construction of projects are generally two
distinct phases. Under this method, often referred to as “design-bid-build,”
governmental units have broad authority to accomplish the design of a project. The
construction of a project must be executed by contract based on bids, with a
governmental unit awarding the contract to the lowest responsible bidder.
Under the bill, in addition to the design-bid-build method, governmental units
are authorized to deliver projects with four alternative methods:
1. “Design-build,” in which architectural, surveying, engineering,
construction, and related services for a project are provided by a single contractor.
2. “Design-build-finance,” in which the design and construction services for a
project are provided by a single entity and financing is provided in whole or in part
by the same entity.
3. “Construction manager-general contractor,” a two-phase method in which
all services unrelated to construction are provided in the first phase by a contractor
who, subject to approval by the governmental unit, also provides construction
services in the second phase.
4. “Fixed-price variable-scope," in which a contractor provides the maximum
amount of work at a cost not to exceed the price fixed by the governmental unit.
The bill creates requirements for soliciting and evaluating proposals using
these methods and awarding contracts to the most qualified bidders. The bill
requires DOT to use these methods to deliver not less than 5 percent of construction
costs of improvement projects by June 30, 2019, not less than 10 percent of
construction costs of improvement projects by June 30, 2021, and not less than 20
percent of construction costs of improvement projects by June 30, 2023.
Prevailing wage
The bill eliminates the state prevailing wage law and the highway prevailing
wage law.
Generally, under the current prevailing wage laws, laborers, workers,
mechanics, and truck drivers employed on the site of certain projects of public works
1) must be paid the prevailing wage rate, as determined by the U.S. Department of
Labor under the federal Davis-Bacon Act; and 2) may not be required or permitted
to work a greater number of hours per day and per week than the prevailing hours
of labor, which is no more than 10 hours per day and 40 hours per week, unless they
are paid 1.5 times their basic rate of pay (commonly referred to as overtime pay) for
all hours worked in excess of the prevailing hours of labor. The prevailing wage laws

include two separate laws: one that applies to certain projects of public works to
which the state or any state agency is a party (state prevailing wage law) and one that
applies to projects under a contract based on bids to which the state is a party for the
construction or improvement of highways (highway prevailing wage law). Also
under current law, no local government may enact or administer a prevailing wage
law ordinance or any similar ordinance. The bill retains this prohibition.
Local authority
The bill provides that a county or municipal vehicle registration fee, commonly
known as a wheel tax, may be imposed only if approved by a majority of electors
voting in a referendum at a regularly scheduled election. Under current law, the
governing body of a municipality or county may enact an ordinance imposing an
annual flat municipal or county registration fee on all motor vehicles registered in
this state which are customarily kept in the municipality or county. The fees
collected are required to be used for transportation-related purposes only.
The bill provides that no roundabout may be constructed as part of a highway
project unless the authority in charge of the highway project obtains approval for the
roundabout from the governing body of the municipality where the proposed
roundabout would be located.
Transportation funding
The bill requires DOT to transfer state moneys appropriated to DOT for state
highway rehabilitation to an appropriation account for local transportation
assistance programs. The bill also requires DOT to transfer an equivalent amount
of federal moneys appropriated for local transportation assistance programs to an
appropriation account for state highway rehabilitation. The bill also requires the
Legislative Fiscal Bureau to adjust the appropriation schedule in chapter 20 of the
statutes to reflect the amounts in the state highway rehabilitation and local
transportation assistance program appropriation accounts immediately following
the transfers.
Audit of the Department of Transportation
The bill requires the state auditor to appoint within the Legislative Audit
Bureau an inspector general who is assigned to and housed at DOT headquarters
and whose services are paid for by DOT. The bill provides that the inspector general
may examine the accounts and other financial records of DOT and may review the
performance and program accomplishments of DOT.
Under the bill, the inspector general must investigate fraud in DOT programs
or activities and report any finding of fraud to the Department of Justice, as well as
investigate waste, abuse, or inefficiency in DOT programs or activities. The
inspector general must report any finding of waste, abuse, or inefficiency to the
speaker of the assembly, the senate majority leader, the joint legislative audit
committee, the assembly and senate committees on transportation, and the
chairpersons of standing committees whose committee jurisdiction includes
oversight and accountability of government operations. In addition, in investigating
waste, abuse, or inefficiency, the inspector general must endeavor to identify savings
for DOT that would pay at least the costs incurred by the inspector general in
carrying out the investigations.

The bill also provides that the inspector general may review claims by any
person whose substantial interest has been adversely affected by a DOT action or
order. If the inspector general elects to review a claim, the inspector general must
determine whether the DOT action or order was inconsistent with any law or
administrative rule and report all such determinations to the speaker of the
assembly, the senate majority leader, the joint legislative audit committee, the
assembly and senate committees on transportation, and the chairpersons of
standing committees whose committee jurisdiction includes oversight and
accountability of government operations.
Reports
The bill requires DOT to report to the appropriate standing committees of the
legislature on the progress of highway improvements using alternative project
delivery methods.
The bill requires DOT to submit to the governor and the Joint Committee on
Finance a plan for developing a funding formula for regions that is based on need
rather than baseline funding.
The bill requires the Department of Administration to develop a plan for
conducting an audit of DOT to be completed no later than August 31, 2018.
The bill requires the inspector general assigned to DOT to submit an annual
report of inspector general activities to the Speaker of the assembly, the senate
majority leader, the joint legislative audit committee, the assembly and senate
committees on transportation, and the chairpersons of standing committees whose
committee jurisdiction includes oversight and accountability of government
operations.
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:
AB456,1 1Section 1. 13.94 (3m) of the statutes is created to read:
AB456,4,32 13.94 (3m) Inspector general. (a) In this subsection, “department" means the
3department of transportation.
AB456,4,64 (b) The state auditor shall appoint an inspector general who is assigned to and
5housed at the headquarters of the department. The state auditor shall appoint the
6inspector general for a 6-year term expiring on March 1 of the odd-numbered year.
AB456,5,4
1(c) The inspector general shall be housed at the department headquarters. The
2department shall provide office space for the inspector general. The department
3shall pay for all services provided by the inspector general and shall credit the
4payments to the appropriation account under s. 20.765 (3) (ka).
AB456,5,65 (d) The inspector general shall be strictly nonpartisan and shall at all times
6observe the confidential nature of any investigation currently being performed.
AB456,5,177 (e) The inspector general may examine the accounts and other financial records
8of the department to assure that all financial transactions have been made in a legal
9and proper manner. The inspector general may review the performance and program
10accomplishments of the department during the fiscal period for which the
11examination is being conducted to determine whether the department carried out
12the policy of the legislature and the governor during the period for which the
13appropriations were made. The department shall at all times with or without notice
14provide the inspector general access to any books, records, or other documents
15maintained by the department relating to its expenditures, revenues, operations,
16and structure, including specifically any such books, records, or other documents
17that are confidential by law.
AB456,5,1818 (f) The inspector general shall do all of the following:
AB456,6,419 1. At his or her discretion, review claims by any person whose substantial
20interest has been adversely affected by a department action or order. A person
21requesting such a review must do so before the commencement of a contested case
22under s. 227.44 or other similar state agency review process. If the inspector general
23elects to review a claim, the inspector general shall determine whether the
24department action or order was inconsistent with any law or administrative rule.
25The inspector general shall report all such determinations to the speaker of the

1assembly, the senate majority leader, the joint legislative audit committee, the
2assembly and senate committees on transportation, and the chairpersons of
3standing committees whose committee jurisdiction includes oversight and
4accountability of government operations.
AB456,6,65 2. Investigate fraud in department programs or activities and report any
6finding of fraud to the department of justice.
AB456,6,157 3. Investigate waste, abuse, or inefficiency in department programs or
8activities and report any finding of waste, abuse, or inefficiency to the speaker of the
9assembly, the senate majority leader, the joint legislative audit committee, the
10assembly and senate committees on transportation, and the chairpersons of
11standing committees whose committee jurisdiction includes oversight and
12accountability of government operations. In investigating waste, abuse, or
13inefficiency in department programs, the inspector general shall endeavor to identify
14savings for the department that would pay at least the costs incurred by the inspector
15general in carrying out the investigations.
AB456,6,2116 4. Submit an annual report of inspector general activities to the chief clerk of
17each house of the legislature, for distribution to the legislature under s. 13.172 (2),
18and to the speaker of the assembly, the senate majority leader, the joint legislative
19audit committee, the assembly and senate committees on transportation, and the
20chairpersons of standing committees whose committee jurisdiction includes
21oversight and accountability of government operations.
AB456,6,2522 (g) Before the department may expend on its programs and activities any
23moneys saved as a result of inspector general investigations under par. (f) 2. and 3.,
24the department must first use the moneys to pay all costs incurred by the inspector
25general in carrying out the investigations.
AB456,7,8
1(h) The speaker of the assembly and the senate majority leader, jointly, may
2direct the inspector general to examine the records or programs of the department.
3The inspector general shall submit the investigation report to the chief clerk of each
4house of the legislature, for distribution to the legislature under s. 13.172 (2), and
5to the speaker of the assembly, the senate majority leader, the joint legislative audit
6committee, the assembly and senate committees on transportation, and the
7chairpersons of standing committees whose committee jurisdiction includes
8oversight and accountability of government operations.
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