State procurement of products and services from businesses located in this state and setting a goal for local governments to purchase a certain percentage of products and services from businesses located in this state. (FE)
The proposed legislation has significant implications for state laws regarding procurement and local spending. If enacted, state agencies would need to adjust their purchasing practices to meet these new requirements. Local governmental units, including counties, municipalities, and school districts, would also face new expectations regarding their procurements, which could require them to revise existing purchasing policies and practices to comply with the goals of the bill.
Senate Bill 1012 aims to promote local economic development by requiring state agencies and local governments in Wisconsin to prioritize procurement from Wisconsin-based businesses. The bill sets a goal that at least 20 percent of the total procurement expenditure in each fiscal year is allocated to products and services sourced from local businesses. This initiative is part of the broader strategy to improve the state's economy by leveraging taxpayer dollars to support local enterprises.
Notable points of contention surrounding SB1012 include concerns about the potential for increased costs and reduced competition in state contracting. Opponents argue that mandating a specific percentage for local spending might limit options for agencies and potentially lead to higher expenses, as local suppliers may not always offer the best prices. Furthermore, there are worries about the bureaucratic requirements for compliance and reporting, which some believe could burden local governmental units and lead to inefficiencies in procurement processes.