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LRBa0934/1
CMH&MPG:ahe&klm
August 2017 Special Session
2017 - 2018 LEGISLATURE
ASSEMBLY AMENDMENT 15,
TO ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 1
August 14, 2017 - Offered by Representatives Ohnstad, Stuck, Crowley and
Sinicki.
AB1-ASA1-AA15,1,11 At the locations indicated, amend the substitute amendment as follows:
AB1-ASA1-AA15,1,3 21. Page 2, line 10: after “authority;" insert “preferences in procurement for
3public contracts;".
AB1-ASA1-AA15,1,4 42. Page 10, line 14: after that line insert:
AB1-ASA1-AA15,1,5 5 Section 2p. 16.855 (1q) of the statutes is created to read:
AB1-ASA1-AA15,1,76 16.855 (1q) (a) 1. A bid submitted by a qualified responsible bidder shall be
7considered as if the bid amount submitted was reduced as follows:
AB1-ASA1-AA15,1,98 a. By 1 percent if the bidder participates in an apprenticeship program under
9ch. 106 and ch. DWD 295, Wis. Adm. Code, or under 29 USC 50 and 29 CFR part 29.
AB1-ASA1-AA15,1,1210 b. By 1 percent if the bidder contributes at least 75 percent of the premium cost
11for individual health insurance coverage for each employee that is to perform work
12under the contract.
AB1-ASA1-AA15,2,3
1c. By 1 percent if the bidder submits a written plan meeting the requirements
2of s. 103.503 (3) and proof that at least 5 percent of the employees that are to perform
3work under the contract are subject to random annual drug and alcohol testing.
AB1-ASA1-AA15,2,44 d. By 1 percent if the bidder is a tier I or tier II participant under s. 299.83.
AB1-ASA1-AA15,2,75 2. The department may request and receive information from the department
6of workforce development or the department of natural resources when determining
7if a bidder qualifies for reduction under subd. 1.
AB1-ASA1-AA15,2,88 (b) 1. In this paragraph:
AB1-ASA1-AA15,2,119 a. “First tier subcontractor” means a person who is awarded a subcontract
10directly by the bidder for the purposes of acquiring supplies or services for
11performance of the contract.
AB1-ASA1-AA15,2,1312 b. “Resident” means a person domiciled in Wisconsin for not less than 12
13consecutive months preceding the submission of a bid.
AB1-ASA1-AA15,2,1514 2. A submitted bid by a qualified responsible bidder shall be considered as if
15the bid amount submitted was reduced as follows:
AB1-ASA1-AA15,2,1716 a. By 6 percent if at least 75 percent of the bidder's employees performing work
17on the contract are residents.
AB1-ASA1-AA15,2,1918 b. By 3 percent if at least 50 percent but less than 75 percent of the bidder's
19employees performing work on the contract are residents.
AB1-ASA1-AA15,2,2120 c. By 1 percent if at least 25 percent but less than 50 percent of the bidder's
21employees performing work on the contract are residents.
AB1-ASA1-AA15,3,222 3. The reduction under subd. 2. may not be applied unless all first tier
23subcontractors working under the bidder also meet the criteria under subd. 2. a., b.,
24or c., whichever is appropriate, unless the first tier contractor demonstrates that

1there is a lack of journeymen in Wisconsin available and qualified to perform the
2work required by the subcontract.
AB1-ASA1-AA15,3,73 (c) A bid reduction under this subsection may not be applied if the reduction
4would jeopardize the receipt of federal funds or would violate federal law. If a bid
5reduction under par. (b) is prohibited under this paragraph, the remaining bid
6reductions shall be increased proportionately so that the the available bid reductions
7total 10 percent.
AB1-ASA1-AA15,3,88 (d) The department shall do all of the following:
AB1-ASA1-AA15,3,119 1. Enforce this subsection and enforce conforming bid reductions under ss.
1059.52 (29) (a), 60.47 (3), 62.15 (1), 66.0901 (1m) (a) 3., 84.06 (2) (a), 85.077 (1), and
1186.31 (2) (b).
AB1-ASA1-AA15,3,1212 2. Promulgate rules necessary to do all of the following:
AB1-ASA1-AA15,3,1513 a. Establish criteria and procedures for determining if bidders are eligible for
14bid reductions under this subsection and ss. 59.52 (29) (a), 60.47 (3), 62.15 (1),
1566.0901 (1m) (a) 3., 84.06 (2) (a), 85.077 (1), and 86.31 (2) (b).
AB1-ASA1-AA15,3,1816 b. Establish procedures for bidders to certify their eligibility for bid reductions
17under this subsection and ss. 59.52 (29) (a), 60.47 (3), 62.15 (1), 66.0901 (1m) (a) 3.,
1884.06 (2) (a), 85.077 (1), and 86.31 (2) (b).
AB1-ASA1-AA15,3,2119 c. Establish procedures to audit bids that make a claim for bid reductions under
20this subsection or s. 59.52 (29) (a), 60.47 (3), 62.15 (1), 66.0901 (1m) (a) 3., 84.06 (2)
21(a), 85.077 (1), or 86.31 (2) (b).
AB1-ASA1-AA15,4,322 3. Monitor awards that are based on bid reductions under this subsection or s.
2359.52 (29) (a), 60.47 (3), 62.15 (1), 66.0901 (1m) (a) 3., 84.06 (2) (a), 85.077 (1), or 86.31
24(2) (b) to ensure that the person awarded the contract continues to meet the criteria
25for the bid reduction until the completion of the contract. If the department

1determines that the person no longer meets the criteria for the bid reduction, the
2contract is void and the department shall assess a penalty against the person of not
3more than 10 percent of the person's bid on the project.”.
AB1-ASA1-AA15,4,4 43. Page 13, line 18: after that line insert:
AB1-ASA1-AA15,4,5 5 Section 14p. 59.52 (29) (a) of the statutes is amended to read:
AB1-ASA1-AA15,4,236 59.52 (29) (a) All public work, including any contract for the construction,
7repair, remodeling or improvement of any public work, building, or furnishing of
8supplies or material of any kind where the estimated cost of such work will exceed
9$25,000 shall be let by contract to the lowest responsible bidder. Each bid submitted
10by a responsible bidder shall be considered as if the bid amount submitted was
11reduced as provided under s. 16.855 (1q).
Any public work, the estimated cost of
12which does not exceed $25,000, shall be let as the board may direct. If the estimated
13cost of any public work is between $5,000 and $25,000, the board shall give a class
141 notice under ch. 985 before it contracts for the work or shall contract with a person
15qualified as a bidder under s. 66.0901 (2). A contract, the estimated cost of which
16exceeds $25,000, shall be let and entered into under s. 66.0901, except that the board
17may by a three-fourths vote of all the members entitled to a seat provide that any
18class of public work or any part thereof may be done directly by the county without
19submitting the same for bids. This subsection does not apply to public construction
20if the materials for such a project are donated or if the labor for such a project is
21provided by volunteers. This subsection does not apply to highway contracts which
22the county highway committee or the county highway commissioner is authorized by
23law to let or make.
AB1-ASA1-AA15,14r 24Section 14r. 60.47 (3) of the statutes is amended to read:
AB1-ASA1-AA15,5,5
160.47 (3) Contracts to lowest responsible bidder. The town board shall let
2a public contract for which advertising for proposals is required under sub. (2) (b) to
3the lowest responsible bidder. Each bid submitted by a responsible bidder shall be
4considered as if the bid amount submitted was reduced as provided under s. 16.855
5(1q).
Section 66.0901 applies to public contracts let under sub. (2) (b).”.
AB1-ASA1-AA15,5,6 64. Page 14, line 8: after that line insert:
AB1-ASA1-AA15,5,7 7 Section 16p. 62.15 (1) of the statutes is amended to read:
AB1-ASA1-AA15,5,208 62.15 (1) Contracts; how let; exception for donated materials and labor. All
9public construction, the estimated cost of which exceeds $25,000, shall be let by
10contract to the lowest responsible bidder; all other public construction shall be let as
11the council may direct. If required to be let by contract, each bid submitted by a
12responsible bidder shall be considered as if the bid amount submitted was reduced
13as provided under s. 16.855 (1q).
If the estimated cost of any public construction
14exceeds $5,000 but is not greater than $25,000, the board of public works shall give
15a class 1 notice, under ch. 985, of the proposed construction before the contract for
16the construction is executed. This provision does not apply to public construction if
17the materials for such a project are donated or if the labor for such a project is
18provided by volunteers. The council may also by a vote of three-fourths of all the
19members-elect provide by ordinance that any class of public construction or any part
20thereof may be done directly by the city without submitting the same for bids.”.
AB1-ASA1-AA15,5,21 215. Page 15, line 24: after that line insert:
AB1-ASA1-AA15,5,22 22 Section 18p. 66.0901 (1m) (a) 3. of the statutes is created to read:
AB1-ASA1-AA15,6,3
166.0901 (1m) (a) 3. Each bid submitted by a responsible bidder shall be
2considered as if the bid amount submitted was reduced as provided under s. 16.855
3(1q).”.
AB1-ASA1-AA15,6,4 46. Page 30, line 12: after that line insert:
AB1-ASA1-AA15,6,5 5 Section 35p. 84.06 (2) (a) of the statutes is amended to read:
AB1-ASA1-AA15,7,36 84.06 (2) (a) All such highway improvements shall be executed by contract
7based on bids unless the department finds that another method as provided in sub.
8(3) or (4) would be more feasible and advantageous. Bids shall be advertised for in
9the manner determined by the department. Except as provided in s. 84.075, the
10contract shall be awarded to the lowest competent and responsible bidder as
11determined by the department. Each bid submitted by a competent and responsible
12bidder shall be considered as if the bid amount submitted was reduced as provided
13under s. 16.855 (1q).
If the bid of the lowest competent bidder is determined by the
14department to be in excess of the estimated reasonable value of the work or not in
15the public interest, all bids may be rejected. The department shall, so far as
16reasonable, follow uniform methods of advertising for bids and may prescribe and
17require uniform forms of bids and contracts. Except as provided in par. (b), the
18secretary shall enter into the contract on behalf of the state. Every such contract is
19exempted from ss. 16.70 to 16.75, 16.755 to 16.82, 16.87 and 16.89, but ss. 16.528,
2016.752, 16.753, and 16.754 apply to the contract. Any such contract involving an
21expenditure of $1,000 or more shall not be valid until approved by the governor. The
22secretary may require the attorney general to examine any contract and any bond
23submitted in connection with the contract and report on its sufficiency of form and
24execution. The bond required by s. 779.14 (1m) is exempt from approval by the

1governor and shall be subject to approval by the secretary. This subsection also
2applies to contracts with private contractors based on bids for maintenance under s.
384.07.”.
AB1-ASA1-AA15,7,4 47. Page 30, line 17: after that line insert:
AB1-ASA1-AA15,7,5 5 Section 36d. 85.077 (1) of the statutes is amended to read:
AB1-ASA1-AA15,7,126 85.077 (1) Except as provided in subs. (2) and (4), if a project involving the
7construction, rehabilitation, improvement, demolition, or repair of rail property or
8rail property improvements is funded in any part with public funds, the department
9or the recipient of the public funds shall let the project by contract on the basis of
10competitive bids and shall award the contract to the lowest responsible bidder. Each
11bid submitted by a responsible bidder shall be considered as if the bid amount
12submitted was reduced as provided under s. 16.855 (1q).
AB1-ASA1-AA15,36g 13Section 36g. 86.31 (2) (b) of the statutes is amended to read:
AB1-ASA1-AA15,7,2214 86.31 (2) (b) Except as provided in par. (d), improvements for highway
15construction projects funded under the program shall be under contracts. Such
16contracts shall be awarded on the basis of competitive bids and shall be awarded to
17the lowest responsible bidder. Each bid submitted by a responsible bidder shall be
18considered as if the bid amount submitted was reduced as provided under s. 16.855
19(1q).
If a city or village does not receive a responsible bid for an improvement, the
20city or village may contract with a county for the improvement. Subject to s. 59.52
21(30), a town may contract with a county for the improvement subject to the criteria
22and procedures promulgated as rules under sub. (6) (h).”.
AB1-ASA1-AA15,7,23 238. Page 36, line 23: after that line insert:
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