Bill Summary – FastDemocracy

- 2024 LEGISLATURE
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                  2023 ASSEMBLY BILL 723
    December 6, 2023 - Introduced by Representatives BROOKS, BEHNKE, BODDEN,
        BRANDTJEN, DITTRICH, MOSES, O'CONNOR, ROZAR, SORTWELL, ZIMMERMAN and
        GREEN, cosponsored by Senators STROEBEL, FELZKOWSKI and TOMCZYK.
        Referred to Committee on Local Government.
 AN ACT       to renumber and amend 59.52 (29) (a), 60.47 (5) and 62.15 (1); to
      amend 60.47 (2) (a), 60.47 (2) (b), 60.47 (3), 60.47 (4), 60.47 (5) (title), 66.0901
      (1) (as), 66.0901 (1m) (a) (intro.), 66.0901 (1m) (b) and 119.04 (1); and to create
      59.52 (29) (am), 59.52 (29) (c) 2., 60.47 (1) (am), 60.47 (2m), 60.47 (5) (c), 62.15
      (1) (b), 120.12 (5m) and 120.127 of the statutes; relating to: local government
      competitive bidding thresholds and requiring school districts to utilize
      competitive bidding.
                     Analysis by the Legislative Reference Bureau
         This bill increases to $50,000, with an exception for certain highway projects,
    the threshold governing sealed, competitive bids that is applicable to a local unit of
    government. Under current law, if the estimated cost of a public works project
    exceeds $25,000, the state or local unit of government must solicit bids and award
    the public works contract to the lowest responsible bidder.
         The bill also requires a school board and the board of school directors of the
    Milwaukee Public Schools to comply with these bidding requirements if the
    estimated cost of a contract exceeds $150,000 and the contract is for the construction,
    repair, remodeling, or improvement of a public school building or for the furnishing
    of supplies or materials.
         The bill provides an exception to the bidding requirements for improvements
    that are constructed by a person other than a town or county and donated to a town
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     ASSEMBLY BILL 723
     or county after the completion of construction. A similar exception for donated
     improvements currently exists for improvements donated to a city or village. The bill
     also provides an exception to the bidding requirements that apply to school boards
     and the MPS board of school directors if the school board or board of directors
     determines that damage or potential damage to a public school building endangers
     the public health or welfare.
          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:
      SECTION 1. 59.52 (29) (a) of the statutes is renumbered 59.52 (29) (a) 1. and
 amended to read:
      59.52 (29) (a) 1. All public work, including any contract for the construction,
 repair, remodeling, or improvement of any public work, building, or furnishing of
 supplies or material of any kind where the estimated cost of such work will exceed
 $25,000 $50,000 shall be let by contract to the lowest responsible bidder.
      3. Any public work, the estimated cost of which does not exceed $25,000
 $50,000, shall be let as the board may direct.
      4. If the estimated cost of any public work is between $5,000 and $25,000
 $50,000, the board shall give a class 1 notice under ch. 985 before it contracts for the
 work or shall contract with a person qualified as a bidder under s. 66.0901 (2).
      2. A contract, the estimated cost of which exceeds $25,000 $50,000, shall be let
 and entered into under s. 66.0901, except that the board may by a three-fourths vote
 of all the members entitled to a seat provide that any class of public work or any part
 thereof may be done directly by the county without submitting the same for bids.
      (c) 1. This subsection does not apply to public construction if the materials for
 such a the project are donated or if the labor for such a the project is provided by
 volunteers.
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     ASSEMBLY BILL 723                                                            SECTION 1
      (d) This subsection does not apply to highway contracts which the county
 highway committee or the county highway commissioner is authorized by law to let
 or make.
      SECTION 2. 59.52 (29) (am) of the statutes is created to read:
      59.52 (29) (am) 1. In this paragraph, “public road project” means a public work
 project for the construction, repair, or maintenance of a public road of which the
 county is in control or for which the county is responsible.
      2. Notwithstanding par. (a) 1., if the estimated cost of a public road project
 exceeds $25,000, the board shall let the project by contract to the lowest responsible
 bidder. Notwithstanding par. (a) 3., if the estimated cost of a public road project does
 not exceed $25,000, the board may let the project in any manner. Notwithstanding
 par. (a) 4., if the estimated cost of a public road project is between $5,000 and $25,000,
 the board shall give a class 1 notice under ch. 985 before it contracts for the project
 or shall contract with a person qualified as a bidder under s. 66.0901 (2).
 Notwithstanding par. (a) 2., if the estimated cost of a public road project exceeds
 $25,000, the board shall let the project by contract and enter into the contract under
 s. 66.0901, except that the board may, by a three-fourths vote of all the members
 entitled to a seat, provide that any portion of the project may be completed directly
 by the county without submitting that portion of the project for bids.
      SECTION 3. 59.52 (29) (c) 2. of the statutes is created to read:
      59.52 (29) (c) 2. This subsection does not apply to the construction by a person
 other than the county of an improvement that is donated to the county after the
 completion of construction.
      SECTION 4. 60.47 (1) (am) of the statutes is created to read:
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     ASSEMBLY BILL 723                                                         SECTION 4
      60.47 (1) (am) “Public road contract” means a contract for the construction,
 repair, or maintenance of a public road of which the town is in control or for which
 the town is responsible.
      SECTION 5. 60.47 (2) (a) of the statutes is amended to read:
      60.47 (2) (a) No town may enter into a public contract with an estimated cost
 of more than $5,000 but not more than $25,000 $50,000 unless the town board, or a
 town official or employee designated by the town board, gives a class 1 notice under
 ch. 985 before execution of that public contract.
      SECTION 6. 60.47 (2) (b) of the statutes is amended to read:
      60.47 (2) (b) No town may enter into a public contract with a value of more than
 $25,000 $50,000 unless the town board, or a town official or employee designated by
 the town board, advertises for proposals to perform the terms of the public contract
 by publishing a class 2 notice under ch. 985. The town board may provide for
 additional means of advertising for bids.
      SECTION 7. 60.47 (2m) of the statutes is created to read:
      60.47 (2m) PUBLIC ROAD CONTRACTS. Notwithstanding sub. (2), and except as
 provided in subs. (4) and (5), no town may enter into a public road contract with an
 estimated cost of more than $5,000 but not more than $25,000 unless the town board,
 or a town official or employee designated by the town board, gives a class 1 notice
 under ch. 985 before execution of that public road contract. Notwithstanding sub.
 (2), and except as provided in subs. (4) and (5), no town may enter into a public road
 contract with a value of more than $25,000, unless the town board, or a town official
 or employee designated by the town board, advertises for proposals to perform the
 terms of the public road contract by publishing a class 2 notice under ch. 985. The
 town board may provide for additional means of advertising for bids.
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     ASSEMBLY BILL 723                                                             SECTION 8
         SECTION 8. 60.47 (3) of the statutes is amended to read:
         60.47 (3) CONTRACTS TO LOWEST RESPONSIBLE BIDDER. The town board shall let
 a public contract or public road contract, for which advertising for proposals is
 required under sub. (2) (b) or (2m) to the lowest responsible bidder. Section 66.0901
 applies to public contracts or public road contracts let under sub. subs. (2) (b) and
 (2m).
         SECTION 9. 60.47 (4) of the statutes is amended to read:
         60.47 (4) CONTRACTS WITH GOVERNMENTAL ENTITIES. This section does not apply
 to public contracts or public road contracts, entered into by a town with a
 municipality, as defined under s. 66.0301 (1) (a).
         SECTION 10. 60.47 (5) (title) of the statutes is amended to read:
         60.47 (5) (title) EXCEPTION FOR EMERGENCIES AND DONATED MATERIALS AND LABOR
 CERTAIN DONATIONS.
         SECTION 11. 60.47 (5) of the statutes is renumbered 60.47 (5) (a) and amended
 to read:
         60.47 (5) (a) This section is optional with respect to public contracts and public
 road contracts for the repair and construction of public facilities when damage or
 threatened damage to the facility creates an emergency, as declared by resolution of
 the town board, that endangers the public health or welfare of the town. This
 subsection no longer applies when the town board declares that the emergency no
 longer exists.
         (b) This section is optional with respect to a public contract or public road
 contract if the materials related to the contract are donated or if the labor that is
 necessary to execute the public contract or public road contract is provided by
 volunteers.
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     ASSEMBLY BILL 723                                                            SECTION 12
      SECTION 12. 60.47 (5) (c) of the statutes is created to read:
      60.47 (5) (c) This section does not apply to the construction by a person other
 than the town of an improvement that is donated to the town after the completion
 of construction.
      SECTION 13. 62.15 (1) of the statutes is renumbered 62.15 (1) (a) and amended
 to read:
      62.15 (1) (a) All public construction, the estimated cost of which exceeds
 $25,000 $50,000, shall be let by contract to the lowest responsible bidder; all other
 public construction shall be let as the council may direct. If the estimated cost of any
 public construction exceeds $5,000 but is not greater than $25,000 $50,000, the board
 of public works shall give a class 1 notice, under ch. 985, of the proposed construction
 before the contract for the construction is executed. This provision paragraph does
 not apply to public construction if the materials for such a the project are donated
 or if the labor for such a the project is provided by volunteers. The council may also
 by a vote of three-fourths of all the members-elect provide by ordinance that any
 class of public construction or any part thereof may be done directly by the city
 without submitting the same for bids.
      SECTION 14. 62.15 (1) (b) of the statutes is created to read:
      62.15 (1) (b) 1. In this paragraph, “public road construction” means a public
 construction project involving the construction, repair, or maintenance of a public
 road of which the city is in control or for which the city is responsible.
      2. Notwithstanding par. (a), all public road construction, the estimated cost of
 which exceeds $25,000, shall be let by contract to the lowest responsible bidder; all
 other public road construction shall be let as the council may direct.
 Notwithstanding par. (a), if the estimated cost of any public road construction
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     ASSEMBLY BILL 723                                                           SECTION 14
 exceeds $5,000 but is not greater than $25,000, the board of public works shall give
 a class 1 notice, under ch. 985, of the proposed construction before the contract for
 the construction is executed.      This subdivision does not apply to public road
 construction if the materials for the project are donated or if the labor for the project
 is provided by volunteers. The council may also by a vote of three-fourths of all the
 members-elect provide by ordinance that any class of public road construction or any
 part thereof may be done directly by the city without submitting the same for bids.
      SECTION 15. 66.0901 (1) (as) of the statutes is amended to read:
      66.0901 (1) (as) “Municipality" means the state or a town, city, village, school
 district, board of school directors of the school district operating under ch. 119, sewer
 district, drainage district, technical college district or other public or quasi-public
 corporation, officer, board or other public body charged with the duty of receiving bids
 for and awarding any public contracts.
      SECTION 16. 66.0901 (1m) (a) (intro.) of the statutes is amended to read:
      66.0901 (1m) (a) (intro.)      Except when necessary to secure federal aid,
 whenever a political subdivision, a school district, or the board of school directors of
 the school district operating under ch. 119 lets a public contract by bidding, the
 political subdivision, school district, or board of school directors shall comply with all
 of the following:
      SECTION 17. 66.0901 (1m) (b) of the statutes is amended to read:
      66.0901 (1m) (b) Except when necessary to secure federal aid, a political
 subdivision, a school district, or the board of school directors of the school district
 operating under ch. 119 may not use a bidding method that gives preference based
 on the geographic location of the bidder or that uses criteria other than the lowest
 responsible bidder in awarding a contract.
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     ASSEMBLY BILL 723                                                               SECTION 18
      SECTION 18. 119.04 (1) of the statutes, as affected by 2023 Wisconsin Act 12,
 is amended to read:
      119.04 (1) Subchapters IV, V and VII of ch. 115, ch. 121 and ss. 66.0235 (3) (c),
 66.0603 (1m) to (3), 115.01 (1) and (2), 115.28, 115.31, 115.33, 115.34, 115.343,
 115.345, 115.363, 115.364, 115.365 (3), 115.366, 115.367, 115.38 (2), 115.415, 115.445,
 118.001 to 118.04, 118.045, 118.06, 118.07, 118.075, 118.076, 118.10, 118.12, 118.124,
 118.125 to 118.14, 118.145 (4), 118.15, 118.153, 118.16, 118.162, 118.163, 118.164,
 118.18, 118.19, 118.196, 118.20, 118.223, 118.225, 118.24 (1), (2) (c) to (f), (6), (8), and
 (10), 118.245, 118.25, 118.255, 118.258, 118.291, 118.292, 118.293, 118.2935, 118.30
 to 118.43, 118.46, 118.50, 118.51, 118.52, 118.53, 118.55, 118.56, 120.12 (2m), (4m),
 (5), (5m), and (15) to (27), 120.125, 120.127, 120.13 (1), (2) (b) to (g), (3), (14), (17) to
 (19), (26), (34), (35), (37), (37m), and (38), 120.137, 120.14, 120.20, 120.21 (3), and
 120.25 are applicable to a 1st class city school district and board but not, unless
 explicitly provided in this chapter or in the terms of a contract, to the commissioner
 or to any school transferred to an opportunity schools and partnership program.
      SECTION 19. 120.12 (5m) of the statutes is created to read:
      120.12 (5m)        CONTRACTS;     ADVERTISING    FOR   BIDS;   CONTRACTS   TO   LOWEST
 RESPONSIBLE BIDDER; EXCEPTION FOR EMERGENCIES.          (a) Subject to s. 120.127, before
 entering into a contract for the construction, repair, remodeling, or improvement of
 a public school building or public school facilities or for the furnishing of supplies or
 materials with an estimated cost greater than $5,000 but not more than $150,000,
 give or direct the school district clerk to give a class 1 notice under ch. 985 of that
 contract or contract with a person qualified as a bidder under s. 66.0901 (2).
      (b) 1. Except as provided in subds. 2. and 3. and subject to s. 120.127, before
 entering into a contract for the construction, repair, remodeling, or improvement of
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     ASSEMBLY BILL 723                                                          SECTION 19
 a public school building or public school facilities or for the furnishing of supplies or
 materials with an estimated cost greater than $150,000, advertise or direct the
 school district clerk to advertise for proposals to p