Chapter 13

13.48(10)(b)4. 4. Build-operate-lease or transfer agreements by the department of transportation for transportation projects under s. 84.01 (30).

13.48(10)(b)5. 5. Contracts for construction of any building, structure or facility for the state fair park board involving a cost of not more than $300,000. Beginning in fiscal year 2023-24, this amount is $600,000.

13.48(10)(b)6. 6. Projects of the Wisconsin Economic Development Corporation.

13.48(10)(c) (c) Paragraph (a) does not apply to any contract for a UW gifts and grants project, as defined in s. 16.855 (1g) (f), that the Board of Regents of the University of Wisconsin System lets through single prime contracting under s. 16.855 (12m).

13.48(11) (11) Exceptions. Nothing in this section prohibits the use of past policies and existing statutory authority to borrow funds for the construction of buildings.

13.48(12) (12) Privately owned or operated facilities.

13.48(12)(a) (a) Except as provided in par. (b), no state board, agency, officer, department, commission or body corporate which has authority to permit a privately owned or operated facility to be constructed on state-owned land may permit a facility that would be privately owned or operated to be constructed on state-owned land without prior approval of the building commission.

13.48(12)(b) (b) This subsection does not apply to any of the following:

13.48(12)(b)1. 1. A facility constructed by or for a business entity having condemnation authority under s. 32.02 (3) to (10) and (13) for purposes for which it would have condemnation authority.

13.48(12)(b)2. 2. A facility constructed by or for the state fair park board, if the cost of constructing the facility does not exceed the amount specified in sub. (3).

13.48(12)(b)3. 3. A facility constructed pursuant to a build-operate-lease or transfer agreement under s. 84.01 (30).

13.48(12)(b)4. 4. A facility constructed by or for the Fox River Navigational System Authority.

13.48(12)(b)5. 5. A facility constructed by or for the Wisconsin Economic Development Corporation.

13.48(13) (13) Application of laws, rules, codes, ordinances and regulations.

13.48(13)(a) (a) Except as provided in par. (b) or (c), every building, structure or facility that is constructed for the benefit of or use of the state, any state agency, board, commission or department, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Economic Development Corporation, or any local professional baseball park district created under subch. III of ch. 229 if the construction is undertaken by the department of administration on behalf of the district, shall be in compliance with all applicable state laws, rules, codes and regulations but the construction is not subject to the ordinances or regulations of the municipality in which the construction takes place except zoning, including without limitation because of enumeration ordinances or regulations relating to materials used, permits, supervision of construction or installation, payment of permit fees, or other restrictions.

13.48(13)(b) (b) Every building, structure or facility that is constructed at state fair park shall be in compliance with all applicable state laws, rules and codes but is not subject to zoning or any other ordinances or regulations of the municipality in which the park is located.

13.48(13)(c) (c) No construction undertaken by the state for the purpose of renovation of the state capitol building is subject to any state law, rule, code or regulation, or any zoning ordinance or regulation of the city of Madison, governing such construction.

13.48(14) (14) Sale or lease of property.

13.48(14)(a) (a) In this subsection, “agency” has the meaning given in s. 16.52 (7).

13.48(14)(am) (am)

13.48(14)(am)1. 1. Except as provided in this paragraph, the building commission shall have the authority to sell or lease all or any part of state-owned real property unless the sale or lease is prohibited under the state or federal constitution or federal law or the sale is conducted as a part of a procedure to enforce an obligation to this state, and may transfer real property under its jurisdiction among agencies. The commission may sell or lease property under this paragraph with or without the approval of the agency having jurisdiction over the property and regardless of whether the property is included in an inventory submitted under par. (d). The building commission does not have the authority to sell or lease any state-owned real property under this paragraph after the department of administration notifies the commission in writing that an offer of sale or sale or lease agreement with respect to a property is pending under s. 16.848 (1). If the sale or lease is not completed and no further action is pending with respect to the property, the authority of the building commission under this paragraph is restored.

13.48(14)(am)2. 2. If the building commission proposes to sell or lease any property identified in subd. 1., the commission shall first notify the joint committee on finance in writing of its proposed action. The commission shall not proceed with the proposed action unless the proposed action is approved by the committee. Together with any notification, the commission shall also provide all of the following:

13.48(14)(am)2.a. a. The estimated value of the property as determined by the department of administration and by at least one qualified privately owned assessor.

13.48(14)(am)2.b. b. The full cost of retiring any remaining public debt incurred to finance the acquisition, construction, or improvement of the property.

13.48(14)(am)2.c. c. A cost-benefit analysis that considers the short-term and long-term costs and benefits to the state from selling or leasing the property.

13.48(14)(am)2.d. d. The length and conditions of any proposed sale or lease between this state and a proposed purchaser or lessee.

13.48(14)(am)2.e. e. The estimated budgetary impact of the proposed sale or lease upon affected state agencies for at least the current and following fiscal biennium.

13.48(14)(am)2.em. em. The methodology to ensure the competitive and transparent sale of the property.

13.48(14)(am)2.f. f. Any other information requested by the committee.

13.48(14)(am)3. 3. Except with respect to property identified in s. 16.848 (2), if any agency has authority to sell or lease real property under any other law, the authority of that agency does not apply after the commission notifies the agency in writing that an offer of sale or sale, or a lease agreement, is pending with respect to the property under this subdivision. If the sale or lease is not completed and no further action is pending with respect to the property, the authority of the agency to sell or lease the property is restored. If the commission sells or leases any state-owned real property under this subdivision, the commission may attach such conditions to the sale or lease as it finds to be necessary or appropriate to carry out the sale or lease in the best interest of the state.

13.48(14)(am)4. 4. This paragraph does not apply to real property that is exempted from sale or lease by the department of administration under s. 16.848.

13.48(14)(am)5. 5. This paragraph does not apply to agricultural land acquired by the Board of Regents of the University of Wisconsin System under s. 36.33 (1).

13.48(14)(b) (b) The building commission shall sell on the basis of either public bids, with the building commission reserving the right to reject any or all bids in the best interest of the state, or on the basis of negotiated prices as determined through a competitive or transparent process. Buildings, structures and land mentioned in this subsection shall be subject to general property taxes levied by those taxing bodies within whose area they lie if used for commercial purposes, and shall be subject to special assessments for public improvements in the same manner and to the same extent as privately owned real property, subject to approval of the building commission when required under s. 66.0703 (6).

13.48(14)(bg) (bg) If any property that is proposed to be sold by the commission under par. (am) is co-owned by a nonstate entity, the commission 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 commission.

13.48(14)(br) (br) If the building commission sells or leases any real property under par. (am) that was under the jurisdiction of an agency prior to the sale or lease, the agency shall convey all systems, fixtures, or additional property interests specified by the commission to the purchaser or lessee of the property on terms specified by the commission. If the commission sells or leases a state-owned heating, cooling, or power plant that is under the jurisdiction of an agency, the agency shall convey all real and personal property associated with the plant to the purchaser or lessee on terms specified by the commission.

13.48(14)(c) (c) Except as provided in par. (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 par. (am), the building commission 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 that 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 par. (am), the building commission 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 commission shall pay to the federal government any of the proceeds required by federal law. If the property was acquired by gift or grant or with gift or grant funds, the commission shall adhere to any restriction governing use of the proceeds. Except as required under par. (e) and ss. 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 subsection, the building commission shall use the net proceeds or remaining net proceeds to pay principal and interest costs on outstanding public debt issued to finance the acquisition, construction, or improvement of property. If any net proceeds remain thereafter, the commission shall use the proceeds to pay principal and interest costs on other outstanding public debt. For the purpose of paying principal and interest costs on other outstanding public debt under this paragraph, the commission may cause outstanding bonds to be called for redemption on or following their optional redemption date, establish one or more escrow accounts to redeem bonds at their optional redemption date, or purchase bonds in the open market. To the extent practical, the commission shall consider all of the following in determining which public debt to redeem:

13.48(14)(c)1. 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.

13.48(14)(c)2. 2. 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.

13.48(14)(c)3. 3. The fiscal benefit of redeeming outstanding debt with higher interest costs.

13.48(14)(c)4. 4. The costs of maintaining federal tax law compliance in the selection of general obligation debt to be redeemed.

13.48(14)(cm) (cm) 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 par. (am), the commission 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 par. (am), the commission 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 commission 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 par. (e) and ss. 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 the remaining net proceeds to pay principal and interest costs on other similar revenue obligations.

13.48(14)(d) (d) Biennially, beginning on January 1, 2014, each agency other than the investment board shall submit to the department of administration an inventory of all real property under its jurisdiction. Except with respect to the Board of Regents of the University of Wisconsin System, the inventory shall include the estimated fair market value of each property. The agency shall specifically identify any underutilized assets in the inventory. No later than July 1 following receipt of the inventories, the department of administration shall obtain appraisals of all properties in the inventories that are identified by the department for potential sale and shall submit to the building commission an inventory containing the location, description and fair market value of each parcel of property identified for potential sale. This paragraph does not apply to the agricultural land acquired by the Board of Regents of the University of Wisconsin System under s. 36.33 (1).

13.48(14)(e) (e) If the state office building located at 3319 West Beltline Highway in Dane County is sold by the state, the building commission shall ensure that the transferee pays $476,228 from the proceeds of the sale to the Wisconsin Public Broadcasting Foundation, if the foundation exists at the time of the transfer.

13.48(15) (15) Acquisition of leasehold interests. Subject to the requirements of s. 20.924 (1) (i), the building commission shall have the authority to acquire leasehold interests in land and buildings where such authority is not otherwise provided to an agency by law.

13.48(16) (16) Madison downtown state office facilities. The eminent domain authority of the building commission under ch. 32 is limited to the acquisition of such parcels of land as it deems necessary for a site for Madison downtown state office facilities, whenever the building commission is unable to agree with the owner upon the compensation therefor, or whenever the absence or legal incapacity of such owner, or other cause prevents or unreasonably delays such agreement.

13.48(17) (17) Advanced land acquisition. In the interest of preventing land speculation the building commission may acquire property within the blocks bordered by East Washington Avenue, South Webster Street, East Wilson Street and South Hancock Street in the city of Madison for possible future construction.

13.48(18) (18) Acquisition of open spaces. The building commission may acquire property adjacent to or within 2 blocks of any state facility for the purpose of establishing and developing open green spaces or possible future construction. Any acquisition in the city of Madison within block number 72, 73, 74, 75, 76, 77, 83, 84, 89, 90, 99, 100, 101, 102, 103 or 104 of the original plat of the city is exempt from enumeration under s. 20.924 (1) if such acquisition is to be solely used to meet the space needs of the state law library, the legislative reference bureau library and legislative and judicial branch agencies and support staffs.

Effective date note NOTE: Sub. (18) is amended by 1997 Wis. Act 5, eff. 7-1-02 or upon completion of acquisition of property sufficient for the construction of a facility to meet the space needs of the state law library, the legislative reference bureau library and legislative and judicial branch agencies and support staffs, to read:

13.48 Note (18) Acquisition of open spaces. The building commission may acquire property adjacent to or within 2 blocks of any state facility for the purpose of establishing and developing open green spaces or possible future construction.

13.48(19) (19) Alternatives to state construction.

13.48(19)(a) (a) Whenever the building commission determines that the use of innovative types of design and construction processes will make better use of the resources and technology available in the building industry, the building commission may waive any or all of s. 16.855, except s. 16.855 (13) and (14m) (a) to (c), if the action is in the best interest of the state and is approved by the building commission.

13.48(19)(b) (b) Subject to the requirements of s. 20.924 (1) (i), the building commission may authorize the lease, lease purchase or acquisition of facilities in lieu of state construction of any project enumerated in the authorized state building program.

13.48(20) (20) Residence halls. Except as provided in sub. (14) (am), the building commission may approve the sale or lease of state-owned residence halls by the board of regents of the University of Wisconsin System to another state agency or a nonstate nonprofit agency for purposes provided in s. 36.11 (1) (e).

13.48(20m) (20m) Projects.

13.48(20m)(a) (a) The building commission shall under this subsection assist construction projects having a public purpose.

13.48(20m)(b) (b) The building commission may award a construction project that satisfies par. (a).

13.48(20m)(c) (c) The building commission may authorize up to $25,000,000 in general fund supported borrowing under par. (b), including up to $3,000,000 for the project described in par. (d).

13.48(20m)(d) (d)

13.48(20m)(d)1. 1. The legislature finds and determines that supporting entrepreneurs and innovators, providing facilities for job training, and promoting dynamic community revitalization and development are of vital importance in creating jobs and contributing to economic development and tourism in this state and are statewide responsibilities of statewide dimension. It is therefore in the public interest, and it is the public policy of this state, to assist the Incourage Community Foundation, Inc., in redeveloping the former Daily Tribune building in the city of Wisconsin Rapids into an economic and community hub.

13.48(20m)(d)2. 2. The building commission may under this subsection assist the Incourage Community Foundation, Inc., in redeveloping the former Daily Tribune building in the city of Wisconsin Rapids into an economic and community hub. The state funding commitment shall be in the form of a grant to the Incourage Community Foundation, Inc. Before approving any state funding commitment for redeveloping the former Daily Tribune building, the building commission shall determine that the Incourage Community Foundation, Inc., has secured additional funding for the project from nonstate revenue sources at least equal to the state’s grant.

13.48(20m)(d)3. 3. If the building commission authorizes a grant to the Incourage Community Foundation, Inc., under subd. 2., and if, for any reason, the facility that is redeveloped with funds from the grant is not used for an economic and community hub, the state shall retain an ownership interest in the facility equal to the amount of the state’s grant.

13.48(20s) (20s) Center.

13.48(20s)(a) (a) The building commission may award under this subsection for a center.

13.48(20s)(b) (b) The building commission may authorize up to $15,000,000 in general fund supported borrowing under par. (a).

13.48(20t) (20t) Psychiatric and behavioral health treatment beds.

13.48(20t)(a) (a) The legislature finds and determines that expanding psychiatric bed capacity as described in par. (b) would greatly benefit state residents by expanding access to timely inpatient mental health treatment and other behavioral health services and allowing public financial resources to be better distributed to more effectively improve delivery of mental health services and is a statewide responsibility of statewide dimension. It is therefore in the public interest, and it is the public policy of this state, to expand psychiatric bed capacity and behavioral health treatment capacity.

13.48(20t)(b) (b) The building commission may authorize up to $5,000,000 in general fund supported borrowing to make a grant for the purpose of renovating an existing mental health facility in Marathon County. The renovation shall provide 26 beds for expanded capacity for psychiatric and other behavioral health treatment to an organization that applies to the building commission and meets all of the following criteria:

13.48(20t)(b)1. 1. The organization provides mental and behavioral health services in the north central region of the state and has a campus in Marathon County.

13.48(20t)(b)2. 2. The organization agrees to renovate an existing mental health facility in Marathon County to provide 16 adult inpatient psychiatric beds, 5 beds for emergency stabilization, and 5 beds for detoxification and substance use treatment. The organization shall serve individuals, including individuals who meet the criteria for emergency detention under s. 51.15 or 51.45, who are from Forest, Langlade, Lincoln, Marathon, Oneida, and Vilas Counties.

13.48(20t)(b)3. 3. The organization identifies measures that it believes will serve the needs of area residents with behavioral health needs, especially, as a critical component of the measures, in reducing the burden on state-operated facilities.

13.48(20t)(b)4. 4. The organization agrees to annually report to the legislature, in the manner described under s. 13.172 (2), the services provided with the resources funded by the grant awarded under this subsection, including the number of individuals diverted from state-operated mental health institutes.

13.48(20t)(b)5. 5. The organization recognizes that it is liable to repay the grant funds to the state if the organization fails to continue to maintain the expanded services and number of beds described under subd. 2. for a minimum of 10 years.

13.48(20t)(c) (c) Notwithstanding s. 150.93, a hospital may increase its approved bed capacity for purposes of this subsection.

13.48(20t)(d) (d) If, for any reason, the space that is renovated with funds from the grant under par. (b) is not used for the purpose of providing the services described under par. (b) 2., the state shall retain an ownership interest in the renovated space equal to the amount of the state’s grant.

13.48(20v) (20v) Grants for local projects.

13.48(20v)(a) (a) The building commission shall establish and operate a grant program under this subsection to assist nonstate organizations to carry out construction projects having a statewide public purpose.

13.48(20v)(b) (b) From the appropriation under s. 20.867 (3) (x), the building commission may award a grant to any nonstate organization for a construction project that satisfies par. (a).

13.48(20v)(c) (c) Before approving each grant, the building commission shall determine that the nonstate organization carrying out the project has secured additional funding for the project from nonstate revenue sources in an amount that is equal to at least half of the total cost of the project.

13.48(20v)(d) (d) If the building commission awards a grant under par. (b), and if, for any reason, the space that is constructed with funds from the grant is not used for one or more public purposes determined by the building commission under par. (a), the state shall retain an ownership interest in the constructed space equal to the amount of the state’s grant.

13.48(20v)(e) (e) The building commission is prohibited from awarding a grant under par. (b) unless the department of administration has reviewed and approved plans for the construction project associated with the grant. Notwithstanding ss. 16.85 (1) and 16.855 (1m), the department of administration is prohibited from supervising any services or work or letting any contract for the project. Section 16.87 does not apply to the project.

13.48(21) (21) Debt increase for Medical College of Wisconsin.

13.48(21)(a) (a) The building commission may authorize up to $8,000,000 of general fund supported borrowing to aid in the construction of a basic science education facility at the Medical College of Wisconsin. Prior to the approval of any state funding commitment, the building commission must satisfy itself that the Medical College of Wisconsin has secured additional funding commitments of at least $34,000,000 from other nonstate revenue sources; that such revenue sources are reasonable and available; that the nonstate funding commitments will not exceed $10,000,000 in borrowed funds, the repayment of which shall be amortized over a period of years equal to at least three-fourths of the amortization period for retirement of the bond issue authorized under s. 20.866 (2) (zb), and that the nonstate funding commitment will not jeopardize the operating funds of the medical college; and that the total funding commitments will enable the signing of contracts for the construction of a complete basic sciences educational facility. If the building commission authorizes a construction grant to the Medical College of Wisconsin, the medical college, in return, shall provide the state with an option-to-purchase with the following provisions:

13.48(21)(a)1. 1. The option price shall be the appraised fair market value at the time the option is exercised, less a credit recognizing the amount of the state’s initial grant. The option shall be subject to any mortgage or other security interest of any private lenders and to the lease existing between the college and Milwaukee County.

13.48(21)(a)2. 2. The option could be exercised only upon the occurrence of any one of the 3 following events:

13.48(21)(a)2.a. a. Suspension of operation of a medical school by the Medical College of Wisconsin or any successor organization;

13.48(21)(a)2.b. b. Foreclosure of the mortgage by a private lender; or

13.48(21)(a)2.c. c. Termination of the lease by Milwaukee County.

13.48(21)(b) (b) If the state does not wish to exercise the option, and if the building is sold to any 3rd party, such agreement shall provide that the state has the right to receive an amount equal to construction grant from the net proceeds of any such sale after the mortgage has been satisfied and all other secured debts have been paid. This right shall be paramount to the right of the college to the proceeds upon such sale.

13.48(22) (22) Sale or lease of capitol area lands. The building commission may lease or resell lands acquired in the capitol planning area for public or private redevelopment and may set such conditions of sale or lease as it deems necessary to ensure development compatible with the needs of the community and the state. This subsection does not apply to lands that are authorized to be sold or leased under s. 16.848 while an offer of sale, sale, or lease agreement is pending or while the lands are leased.