Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1090 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 1090
5	5	February 16, 2024 - Introduced by Representatives DALLMAN, SCHUTT, BODDEN,
6	6	BRANDTJEN, DITTRICH, DUCHOW, GUNDRUM, MAXEY, MOSES, MURPHY, NEDWESKI,
7	7	O'CONNOR, PENTERMAN, RETTINGER, SCHMIDT and STEFFEN, cosponsored by
8	8	Senators TESTIN, WANGGAARD and NASS. Referred to Committee on State
9	9	Affairs.
10	10	*AUTHORS SUBJECT TO CHANGE*
11	11	AN ACT to create 20.933 of the statutes; relating to: prohibiting state
12	12	contracting with certain business entities and providing a penalty.
13	13	Analysis by the Legislative Reference Bureau
14	14	This bill prohibits any state agency or other body in Wisconsin state
15	15	government, including the legislature and the courts (state agency), from
16	16	contracting with certain prohibited business entities. Specifically, the bill prohibits
17	17	state agencies from contracting with any organization or enterprise operated for
18	18	profit that is organized under the laws or rules of a country of concern or that is
19	19	directly or indirectly owned or controlled by the government of a country of concern
20	20	or by a business entity organized under the laws or rules of a country of concern. The
21	21	bill defines “country of concern” to mean each of the following:
22	22	1. The People's Republic of China.
23	23	2. Russia.
24	24	3. Cuba.
25	25	4. Iran.
26	26	5. North Korea.
27	27	6. Venezuela.
28	28	Additionally, the bill provides that no contract between any person and a state
29	29	agency shall be valid, binding, and enforceable unless the person provides prior
30	30	written certification to the state agency that the person is not a prohibited business
31	31	entity and that the person has made every effort to ensure that the goods or services
32	32	provided under the contract did not originate with a prohibited business entity.
33	33	Moreover, if any person contracting with a state agency becomes a prohibited
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38	38	business entity, the person is for that reason considered to be in breach of contract,
39	39	and the person must provide written notification of the breach to the state agency.
40	40	The state agency may then terminate the contract and may pursue all appropriate
41	41	legal remedies for the breach.
42	42	The bill charges the Department of Administration with receiving and
43	43	investigating complaints of alleged violations of the bill's contracting requirements.
44	44	If DOA determines that a person has violated the bill's requirements, all of the
45	45	following apply:
46	46	1. The person is liable for a forfeiture equal to the greater of $250,000, an
47	47	amount equal to twice the amount of the value of the relevant contract, o an amount
48	48	equal to the total amount of all pecuniary losses suffered by any state as a result of
49	49	the violation.
50	50	2. The person is ineligible to contract with a state agency for five years following
51	51	the date of the DOA's determination of a violation.
52	52	Finally, the bill authorizes the Attorney General to enforce the bill's
53	53	requirements in court.
54	54	For further information see the state fiscal estimate, which will be printed as
55	55	an appendix to this bill.
56	56	The people of the state of Wisconsin, represented in senate and assembly, do
57	57	enact as follows:
58	58	SECTION 1. 20.933 of the statutes is created to read:
59	59	20.933 Prohibiting state contracting with certain business entities. (1)
60	60	DEFINITIONS. In this section:
61	61	(a) “Business entity” means any organization or enterprise engaged in
62	62	commerce, whether or not operated for profit, including all wholly owned
63	63	subsidiaries, majority-owned subsidiaries, parent companies, or affiliates.
64	64	(b) “Contract" means to become a party to any agreement for the acquisition
65	65	by purchase, lease, or barter of property, goods, or services for the direct benefit or
66	66	use of any of the parties.
67	67	(c) “Country of concern” means the People's Republic of China, including the
68	68	Hong Kong and Macau Special Administrative Regions, Russia, Cuba, Iran, North
69	69	Korea, or Venezuela.
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84	84	SECTION 1
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86	86	(d) “Department” means the department of administration.
87	87	(e) “Prohibited business entity” means a business entity that is organized
88	88	under the laws or rules of a country of concern or that is directly or indirectly owned
89	89	or controlled by the government of a country of concern or by a business entity
90	90	organized under the laws or rules of a country of concern.
91	91	(f) “State agency" means an association, authority, board, department,
92	92	commission, independent agency, institution, office, society, system, or other body in
93	93	state government created or authorized to be created by the constitution or any law,
94	94	including the legislature and the courts.
95	95	(2) PROHIBITED CONTRACTS. (a) No state agency may contract with a prohibited
96	96	business entity.
97	97	(b) No contract between any person and a state agency shall be valid, binding,
98	98	and enforceable unless the person provides prior written certification to the state
99	99	agency that the person is not a prohibited business entity and that the person has
100	100	made every effort to ensure that the goods or services being contracted for do not
101	101	originate from a prohibited business entity. A state agency may rely on such
102	102	certification without further investigation.
103	103	(c) If any person contracting with a state agency becomes a prohibited business
104	104	entity, the person shall be considered for that reason to have breached the contract,
105	105	and the person shall without delay provide written notification of the breach to the
106	106	state agency. The state agency may terminate the contract and may pursue all
107	107	appropriate legal remedies for the breach.
108	108	(3) EXEMPTION. Subsection (2) does not prohibit a contract to which all of the
109	109	following apply:
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136	136	(a) The goods or services offered under the contract are not obtainable by the
137	137	state agency by other reasonable means.
138	138	(b) The harm to the state in failing to execute the contract outweighs the public
139	139	interests served by the prohibition under sub. (2).
140	140	(c) The contract is approved by the department.
141	141	(4) COMPLAINTS; FORFEITURES. Any person may file a complaint with the
142	142	department alleging a violation of sub. (2) on a form prescribed by the department.
143	143	The department shall investigate each complaint. If upon investigation the
144	144	department determines a person has violated sub. (2), all of the following apply:
145	145	(a) The person shall be liable for a forfeiture equal to the greater of the
146	146	following, as determined by the department:
147	147	1. $250,000.
148	148	2. An amount equal to twice the amount of the value of the contract on which
149	149	the person submitted a bid or proposal.
150	150	3. An amount equal to the total amount of all pecuniary losses suffered by any
151	151	state as a result of such violation.
152	152	(b) The person is ineligible to contract with a state agency for 5 years following
153	153	the date of the department's determination of a violation.
154	154	(5) ENFORCEMENT. The attorney general may bring an action in any court of
155	155	competent jurisdiction to enforce this section.
156	156	(END)
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