AB 228

Currently, minority-owned businesses that are certified by the Department of

Commerce (Commerce) receive certain preferences in governmental procurement.

State agencies must attempt to ensure that 5 percent of the total amount expended

for state procurements in each fiscal year is paid to minority-owned businesses.

With the exception of nonhighway construction work and certain other limited

exceptions, state agencies that are subject to requirements to make purchases

through competitive bidding or competitive sealed proposals may accept a bid or

proposal from a minority-owned business that is no more than 5 percent higher than

the apparent low bid or most advantageous proposal. Unless the secretary of

administration reports to the Joint Committee on Finance the reasons for not doing

so, the Building Commission must ensure that at least 6 percent of the total

long-term state public debt, revenue bonding, and short-term borrowing in each

fiscal year is underwritten by minority-owned investment firms. The Investment

Board must attempt to ensure that 5 percent of the total funds it expends for

financial and investment analysis and for common stock and convertible bond

brokerage commissions in each fiscal year is expended for the services of

minority-owned financial advisers or minority-owned investment firms.

In addition, metropolitan sewerage commissions serving metropolitan

sewerage districts that encompass first class cities, presently only Milwaukee, must

attempt to ensure that 5 percent of the total funds expended for financial and

investment analysis and for common stock and convertible bond brokerage

commissions in each fiscal year is expended for the services of minority-owned

financial advisers or minority-owned investment firms. Current law contracting

provisions that apply to special purpose districts (local exposition districts,

professional baseball park districts, professional football stadium districts, and

cultural arts districts) also contain provisions that relate to minority and women

hiring and contracting. Generally, persons awarded contracts for local exposition

districts must agree that at least 25 percent of the employees hired because of the

contracts will be minority group members; at least 5 percent of the employees hired

will be women; at least 25 percent of the aggregate dollar value of certain contracts

will be awarded to minority businesses; and at least 5 percent of the aggregate dollar

value of certain contracts will be awarded to women's business. In the case of the

other special districts, the minority and women contracting provisions are goals,

which generally include the same participation percentages, except that the

participation percentages for minority group members is 15 percent for football

stadium districts and cultural arts districts.

This bill creates similar preferences in awarding state contracts or orders to

disabled veteran-owned businesses certified by Commerce. The bill does not,

however, create any goals for total amounts or percentages of state contracts or

orders to be awarded to these businesses. The bill defines a disabled veteran as a