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2 | 2 | | MPG/MIM/JPC:cjs&emw |
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3 | 3 | | 2023 - 2024 LEGISLATURE |
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4 | 4 | | 2023 ASSEMBLY BILL 956 |
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5 | 5 | | January 16, 2024 - Introduced by Representatives BORN, ARMSTRONG, DONOVAN, |
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6 | 6 | | GUNDRUM, HURD, KRUG, MURPHY, MURSAU, NEDWESKI, NOVAK, O'CONNOR, |
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7 | 7 | | PLUMER, SCHMIDT, SWEARINGEN and WITTKE, cosponsored by Senator BALLWEG. |
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8 | 8 | | Referred to Committee on State Affairs. |
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9 | 9 | | ***AUTHORS SUBJECT TO CHANGE*** |
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10 | 10 | | AN ACT to renumber and amend 775.01; to amend 13.48 (4), 16.867 (2) and |
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11 | 11 | | 20.924 (1) (d); and to create 13.48 (19) (am), 16.007 (2m), 16.40 (20b), 16.855 |
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12 | 12 | | (3m), 16.858 (3m), 16.867 (3), 16.899 and 775.01 (2) of the statutes; relating |
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13 | 13 | | to: modifications to building program project budgets, selection of project |
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14 | 14 | | architects and engineers, single prime contracting, agency cooperation with |
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15 | 15 | | energy conservation contractors, timeline for claims before the Claims Board, |
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16 | 16 | | and making a transfer to the state building trust fund. |
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17 | 17 | | Analysis by the Legislative Reference Bureau |
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18 | 18 | | MODIFICATIONS TO BUILDING PROGRAM PROJECT BUDGETS |
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19 | 19 | | Under current law, the Building Commission has the authority to authorize |
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20 | 20 | | limited changes in the program or budget of a building program project if the |
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21 | 21 | | commission determines that unanticipated program conditions or bidding |
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22 | 22 | | conditions require the change to effectively and economically construct the project. |
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23 | 23 | | Under this bill, the commission may not increase the budget of a project enumerated |
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24 | 24 | | in the state building program by more than 10 percent without submitting the |
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25 | 25 | | proposed project budget increase for approval by the Joint Committee on Finance |
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26 | 26 | | under passive review. |
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27 | 27 | | The bill also requires that the Department of Administration submit a |
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28 | 28 | | quarterly report to JCF and each voting member of the Building Commission that |
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36 | 36 | | MPG/MIM/JPC:cjs&emw |
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37 | 37 | | ASSEMBLY BILL 956 |
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38 | 38 | | identifies each project for which the Building Commission has approved a budget |
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39 | 39 | | increase and identifies each project enumerated in the state building program for |
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40 | 40 | | which DOA estimates a budget increase will be necessary for project completion, |
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41 | 41 | | including a description of the reasons for the project budget shortfall. |
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42 | 42 | | SELECTION OF PROJECT ARCHITECTS AND ENGINEERS |
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43 | 43 | | Under current law, the secretary of administration is required to establish a |
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44 | 44 | | committee for each construction project under DOA's supervision, except certain |
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45 | 45 | | emergency projects, for the purpose of selecting an architect or engineer for the |
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46 | 46 | | project. If the estimated cost of a construction project is $7,400,000 or more, the |
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47 | 47 | | selection committee must use a request-for-proposal process established by DOA to |
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48 | 48 | | select an architect or engineer for the project based on qualifications. The bill raises |
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49 | 49 | | that threshold to $15,000,000. |
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50 | 50 | | Additionally, the bill prohibits such a committee from refusing to select an |
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51 | 51 | | architect or engineer who operates an architect or engineering firm with only one |
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52 | 52 | | responsible architect or engineer for a construction project that has an estimated cost |
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53 | 53 | | of less than $2,000,000. The bill also allows DOA to increase this threshold up to |
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54 | 54 | | $15,000,000. |
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55 | 55 | | SINGLE PRIME CONTRACTING |
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56 | 56 | | The bill creates a new exception to single prime contracting for high-dollar |
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57 | 57 | | building projects. Single prime contracting is a process in which the state contracts |
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58 | 58 | | only with a general prime contractor who then must contract with subcontractors. |
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59 | 59 | | Under current law, whenever the Building Commission determines that the use of |
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60 | 60 | | innovative types of design and construction processes will make better use of the |
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61 | 61 | | resources and technology available in the building industry, the commission may |
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62 | 62 | | waive certain requirements related to single prime contracting, if the action is in the |
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63 | 63 | | best interest of the state and is approved by the commission. |
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64 | 64 | | Under the bill, for any project costing $200,000,000 or more, at the request of |
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65 | 65 | | the agency for which the project is constructed, the Building Commission is required |
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66 | 66 | | to waive certain single prime contracting requirements for the project, as requested |
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67 | 67 | | by the agency. |
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68 | 68 | | CERTAIN PROJECT BIDDING PROCEDURES |
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69 | 69 | | Under the bill, at any time more than two days prior to the end of the period |
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70 | 70 | | during which bids may be submitted for a building project, a bidder or potential |
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71 | 71 | | bidder may submit a question to DOA concerning the project. Additionally, the bill |
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72 | 72 | | provides that DOA may issue addenda at any time during the bidding period to |
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73 | 73 | | modify or clarify the drawings and specifications for the project being bid or to extend |
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74 | 74 | | the bidding period. |
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75 | 75 | | COOPERATION WITH ENERGY CONSERVATION CONTRACTORS |
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76 | 76 | | Current law authorizes DOA to contract with qualified contractors for the |
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77 | 77 | | performance of energy conservation audits at state buildings, structures, and |
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78 | 78 | | facilities and for the performance of construction work at a state building, structure, |
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79 | 79 | | or facility for the purpose of realizing potential savings of future energy costs |
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80 | 80 | | identified in an energy conservation audit. The bill requires DOA and the Board of |
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81 | 81 | | Regents of the University of Wisconsin System to collaborate with energy service - 3 -2023 - 2024 Legislature |
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83 | 83 | | MPG/MIM/JPC:cjs&emw |
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84 | 84 | | ASSEMBLY BILL 956 |
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85 | 85 | | companies to identify and execute pilot projects using financing provided by the |
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86 | 86 | | companies to upgrade facilities, reduce deferred maintenance, and increase |
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87 | 87 | | sustainability. |
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88 | 88 | | UTILITIES COSTS |
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89 | 89 | | The bill provides that each state contract for construction work must state |
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90 | 90 | | which party to the contract is responsible for paying project utility service connection |
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91 | 91 | | charges and which party is responsible for paying for costs related to the |
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92 | 92 | | consumption of utility services at the project site. |
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93 | 93 | | ACTIONS AGAINST THE STATE RELATED TO CERTAIN CONTRACT CLAIMS |
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94 | 94 | | Under current law, the Claims Board is required to receive, investigate, and |
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95 | 95 | | make recommendations on all claims against the state of $10 or more that are |
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96 | 96 | | referred to the board by the Department of Administration. The board is required |
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97 | 97 | | to report its findings and recommendations on all claims referred to the board to the |
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98 | 98 | | legislature. The board may deny a claim, directly pay a claim of up to $10,000, or |
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99 | 99 | | recommend a payment in excess of $10,000 to the legislature. If the board concludes |
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100 | 100 | | that a claim should be paid by the state and the board does not or may not directly |
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101 | 101 | | pay the claim, current law requires the board to cause a bill to be drafted covering |
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102 | 102 | | its recommendations. A claimant may commence a lawsuit against the state upon |
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103 | 103 | | the refusal of the legislature to pass a bill allowing a claim. |
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104 | 104 | | This bill creates a timeline for the board to hear and make a final determination |
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105 | 105 | | upon certain claims related to contracts and, in addition to current law, allows |
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106 | 106 | | claimants to bring actions against the state related to certain contract claims if |
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107 | 107 | | certain conditions are met. Under the bill, any claim referred to the board that |
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108 | 108 | | relates to a contract with the Department of Transportation for transportation |
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109 | 109 | | infrastructure improvement or that relates to a contract with DOA or the Board of |
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110 | 110 | | Regents of the University of Wisconsin System that is awarded under current law |
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111 | 111 | | for construction projects must be heard by the board, and the board must make a final |
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112 | 112 | | determination on the claim, within six months from the day that the claim was |
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113 | 113 | | referred to the board. If the board concludes that the facts of the claim would be more |
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114 | 114 | | properly adjudicated in a court of law or if the board fails to make a final |
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115 | 115 | | determination on the claim within six months from the date that the claim was |
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116 | 116 | | referred to the board, the bill allows the claimant to commence an action against the |
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117 | 117 | | state seeking judgment on the claim as provided under current law. |
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118 | 118 | | TRANSFER TO THE BUILDING TRUST FUND |
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119 | 119 | | The bill transfers $32,000,000 from the general fund to the building trust fund |
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120 | 120 | | in fiscal year 2023-24. |
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121 | 121 | | For further information see the state fiscal estimate, which will be printed as |
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122 | 122 | | an appendix to this bill. |
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123 | 123 | | The people of the state of Wisconsin, represented in senate and assembly, do |
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124 | 124 | | enact as follows: - 4 -2023 - 2024 Legislature LRB-2491/1 |
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125 | 125 | | MPG/MIM/JPC:cjs&emw |
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126 | 126 | | SECTION 1 ASSEMBLY BILL 956 |
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127 | 127 | | SECTION 1. 13.48 (4) of the statutes is amended to read: |
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128 | 128 | | 13.48 (4) STATE AGENCIES TO REPORT PROPOSED PROJECTS. Whenever any state |
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129 | 129 | | agency contemplates a project under the state building program it shall report the |
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130 | 130 | | project to the building commission. The report shall be made on such date and in |
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131 | 131 | | such manner as the building commission prescribes. Each state agency submitting |
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132 | 132 | | a report to the building commission under this subsection shall at the same time |
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133 | 133 | | submit the report to the joint committee on finance. This subsection does not apply |
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134 | 134 | | to projects identified in sub. (10) (c). |
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135 | 135 | | SECTION 2. 13.48 (19) (am) of the statutes is created to read: |
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136 | 136 | | 13.48 (19) (am) 1. In this paragraph, “agency" has the meaning given in s. 16.52 |
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137 | 137 | | (7). |
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138 | 138 | | 2. For any project costing $200,000,000 or more, at the request of the agency |
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139 | 139 | | for which the project is constructed, the building commission shall waive the |
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140 | 140 | | requirements under s. 16.855 for the project, except s. 16.855 (13) and (14m) (a) to |
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141 | 141 | | (c), as requested by the agency. |
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142 | 142 | | SECTION 3. 16.007 (2m) of the statutes is created to read: |
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143 | 143 | | 16.007 (2m) TIMELINE FOR CERTAIN CLAIMS. Any claim referred to the board that |
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144 | 144 | | relates to a contract with the department of transportation for transportation |
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145 | 145 | | infrastructure improvement or to a contract with the department of administration |
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146 | 146 | | or the Board of Regents of the University of Wisconsin System that is awarded under |
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147 | 147 | | s. 16.855 shall be heard by the claims board and the claims board shall make a final |
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148 | 148 | | determination upon the claim within 6 months from the date that the claim was |
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149 | 149 | | referred to the claims board. |
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150 | 150 | | SECTION 4. 16.40 (20b) of the statutes is created to read: |
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177 | 177 | | SECTION 4 |
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178 | 178 | | ASSEMBLY BILL 956 |
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179 | 179 | | 16.40 (20b) BUILDING PROGRAM CHANGES. Submit a quarterly report no later |
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180 | 180 | | than the last day of the month following the end of each calendar quarter to the joint |
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181 | 181 | | committee on finance and each voting member of the building commission that |
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182 | 182 | | includes all of the following: |
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183 | 183 | | (a) An identification of each project for which the building commission |
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184 | 184 | | approved during the quarter a budget increase under s. 20.924 (1) (d), including a |
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185 | 185 | | description of the project and the amount of the increase. |
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186 | 186 | | (b) An identification of each project enumerated in the authorized state |
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187 | 187 | | building program for which the department estimates a budget increase will be |
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188 | 188 | | necessary for project completion, including a description of the project and the |
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189 | 189 | | reasons for the project budget shortfall. |
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190 | 190 | | SECTION 5. 16.855 (3m) of the statutes is created to read: |
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191 | 191 | | 16.855 (3m) (a) In this subsection, “bidding period” means the period beginning |
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192 | 192 | | on the date of first publication of the advertisement for proposals and ending on the |
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193 | 193 | | date of bid opening. |
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194 | 194 | | (b) At any time more than 2 days prior to the end of the bidding period, a bidder |
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195 | 195 | | or potential bidder may submit a question to the department concerning the project |
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196 | 196 | | being bid. |
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197 | 197 | | (c) The department may issue addenda at any time during the bidding period |
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198 | 198 | | to modify or clarify the drawings and specifications for the project being bid or to |
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199 | 199 | | extend the bidding period. |
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200 | 200 | | SECTION 6. 16.858 (3m) of the statutes is created to read: |
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201 | 201 | | 16.858 (3m) The department and the Board of Regents of the University of |
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202 | 202 | | Wisconsin System shall collaborate with energy service companies to identify and |
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227 | 227 | | MPG/MIM/JPC:cjs&emw |
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228 | 228 | | SECTION 6 ASSEMBLY BILL 956 |
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229 | 229 | | execute pilot projects under this section using financing provided by the companies |
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230 | 230 | | to upgrade facilities, reduce deferred maintenance, and increase sustainability. |
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231 | 231 | | SECTION 7. 16.867 (2) of the statutes is amended to read: |
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232 | 232 | | 16.867 (2) If the estimated cost of a construction project under the department's |
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233 | 233 | | supervision is $7,400,000 $15,000,000 or more, the selection committee appointed |
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234 | 234 | | under sub. (1) shall use a request-for-proposal process established by the |
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235 | 235 | | department to select an architect or engineer for the project based on qualifications. |
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236 | 236 | | SECTION 8. 16.867 (3) of the statutes is created to read: |
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237 | 237 | | 16.867 (3) A committee appointed under sub. (1) may not refuse to select an |
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238 | 238 | | architect or engineer for a construction project that has an estimated cost of less than |
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239 | 239 | | $2,000,000 because the architect or engineer operates an architect or engineering |
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240 | 240 | | firm with only one responsible architect or engineer. The department may increase |
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241 | 241 | | the threshold under this subsection as necessary, but may not exceed $15,000,000. |
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242 | 242 | | SECTION 9. 16.899 of the statutes is created to read: |
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243 | 243 | | 16.899 Utilities-related costs. Each contract for construction work under |
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244 | 244 | | this subchapter shall state which party to the contract is responsible for paying |
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245 | 245 | | project utility service connection charges and which party is responsible for paying |
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246 | 246 | | for costs related to the consumption of utility services at the project site. |
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247 | 247 | | SECTION 10. 20.924 (1) (d) of the statutes is amended to read: |
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248 | 248 | | 20.924 (1) (d) Shall exercise considered judgment in supervising the |
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249 | 249 | | implementation of the state building program, and may authorize limited changes |
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250 | 250 | | in the project program, and in the project budget if the commission determines that |
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251 | 251 | | unanticipated program conditions or bidding conditions require the change to |
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252 | 252 | | effectively and economically construct the project. However, total state funds for |
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253 | 253 | | major projects under the authorized state building program for each agency shall not |
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281 | 281 | | SECTION 10 |
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282 | 282 | | ASSEMBLY BILL 956 |
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283 | 283 | | be exceeded, and the building commission may not increase the budget of any project |
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284 | 284 | | enumerated in the authorized state building program by more than 10 percent |
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285 | 285 | | without providing notice of the proposed increase to the joint committee on finance. |
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286 | 286 | | If the cochairpersons of the committee do not notify the building commission within |
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287 | 287 | | 14 working days after the date of the building commission's notice of the proposed |
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288 | 288 | | project budget increase, the project budget may be increased as proposed by the |
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289 | 289 | | building commission. If, within 14 working days after the date of the building |
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290 | 290 | | commission's notice of the proposed project budget increase, the cochairpersons of |
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291 | 291 | | the committee notify the building commission that the committee has scheduled a |
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292 | 292 | | meeting for the purpose of reviewing the proposed project budget increase, the |
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293 | 293 | | project budget may be increased by more than 10 percent only upon approval of the |
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294 | 294 | | committee. |
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295 | 295 | | SECTION 11. 775.01 of the statutes is renumbered 775.01 (1) and amended to |
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296 | 296 | | read: |
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297 | 297 | | 775.01 (1) Upon Subject to sub. (2), upon the refusal of the legislature to allow |
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298 | 298 | | a claim against the state the claimant may commence an action against the state by |
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299 | 299 | | service as provided in s. 801.11 (3) and by filing with the clerk of court a bond, not |
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300 | 300 | | exceeding $1,000, with 2 or more sureties, to be approved by the attorney general, |
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301 | 301 | | to the effect that the claimant will indemnify the state against all costs that may |
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302 | 302 | | accrue in such action and pay to the clerk of court all costs, in case the claimant fails |
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303 | 303 | | to obtain judgment against the state. |
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304 | 304 | | SECTION 12. 775.01 (2) of the statutes is created to read: |
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305 | 305 | | 775.01 (2) Upon the conclusion of the claims board that the facts of a claim |
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306 | 306 | | described under s. 16.007 (2m) would be more properly adjudicated in a court of law |
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307 | 307 | | or upon the failure of the claims board to make a final determination on a claim |
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333 | 333 | | MPG/MIM/JPC:cjs&emw |
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334 | 334 | | SECTION 12 ASSEMBLY BILL 956 |
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335 | 335 | | described under s. 16.007 (2m) within 6 months from the date that the claim was |
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336 | 336 | | referred to the claims board the claimant may commence an action against the state |
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337 | 337 | | seeking judgment on the claim by service as provided in s. 801.11 (3) and by filing |
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338 | 338 | | with the clerk of court a bond, not exceeding $1,000, with 2 or more sureties, to be |
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339 | 339 | | approved by the attorney general, to the effect that the claimant will indemnify the |
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340 | 340 | | state against all costs that may accrue in such action and pay to the clerk of court all |
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341 | 341 | | costs, in case the claimant fails to obtain judgment against the state. |
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342 | 342 | | SECTION 13.0Fiscal changes. |
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343 | 343 | | (1) TRANSFER FROM THE GENERAL FUND TO THE STATE BUILDING TRUST FUND. There |
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344 | 344 | | is transferred from the general fund to the state building trust fund $32,000,000 in |
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345 | 345 | | fiscal year 2023-24. |
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346 | 346 | | (END) |
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