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  • August 12, 2024

    More Heat than Light: New Laws Affecting the Construction Industry

    With the 2023-24 Wisconsin legislative session concluded, several bills were signed into law that affect the construction industry. John Schulze discusses the new laws and the areas they impact.

    John J. Schulze

    The 2023-24 Wisconsin legislative session concluded months ago. It began like the 2021 -22 session ended, with a Democratic governor, large Republican majorities in both houses, and a $4 billion state budget surplus. Over 2,000 bills were introduced, with less than 12% becoming law, and Gov. Tony Evers continued his record-setting veto pace.

    Despite that, some construction-related ideas became law.

    John Schulze headshot John Schulze, Marquette 2004, is the director of legal and government affairs for Associated Builders and Contractors of Wisconsin in Madison, a construction trade association.

    2023-25 State Budget

    The state budget deliberations take up most of the first half of odd-numbered years, and 2023 was no different. After significant negotiations, the budget passed both houses and was signed into law. Of note:

    Infrastructure horizontal: The passed budget used over $500 million in one-time money in lieu of borrowing, and included over $1.5 billion in roads, including an increase in general transportation aids, and $250 million targeted to local roads and bridges so all projects were kept on track. While funding for buses and other mass transit increased, going forward, the money will not come out of the state’s transportation budget.

    Infrastructure vertical: $285 million to fund Camp Randall Sports Center.

    Changes to the threshold levels for state projects: See the table on the Wisconsin Department of Administration website.

    Stand-alone Legislation Signed into Law in 2023-2024

    While the state budget takes up most the legislature’s effort because of the billions it spends and the policy changes that can be included, below are stand-alone bills that positively affect the construction industry:

    Brewer Stadium improvements: Wisconsin Act 40 / Wisconsin Act 41 spends over $500 million for stadium improvement. Amendments require the Milwaukee Brewers to issue Requests for Proposals for contracts that exceed $200,000. The contracts will be awarded based on price, time for completion of work, contractor’s qualifications, and past performance, contractor responsiveness, contractor eligibility in accordance with the RFP, results of applicable inspections and tests, and performance standards established by the Brewers.

    Infrastructure investments outside of state budget: Wisconsin Act 102 spends $423 million to fund capital improvements.

    Quarry reforms: Wisconsin Act 12 was the package focused on the city of Milwaukee and the Milwaukee County’s fiscal solvency, but a provision prevents local governments from restricting hours of operation or blasting, and from adding zoning or permitting requirements.

    Creation of a claims and payment process for contractors harmed by delays in utility work: Wisconsin Act 46 streamlines utility delay compensation for contractors, guaranteeing they’ll be made whole in a timely manner directly through WisDOT, and establishes a clear appeals process.

    Protecting construction design professionals from indemnification requirements: Wisconsin Act 211 prevents the common practice of making engineers, architects, and other design professionals who work on public projects from being forced to indemnify, hold harmless, and defend the government against all losses and expenses, including claims or losses they did not cause and cannot insure against.

    DOT setback reforms: Wisconsin Act 157 will establish that new DOT setbacks will be no more than 50 feet from the right of way of the highway, a decrease of 50 feet from the previous standard. Also provides more allowance in what can be constructed in the setback.

    Change to electric vehicle (EV) charging law: Wisconsin Act 121 allows convenience stores, grocers, and other businesses to start selling electricity to electric car owners without being regulated as a utility. An amendment was added that blocks any local government from requiring new construction projects to include EV charging stations.

    Administrative Rules

    Bills need to proactively pass both houses of the legislature and be signed into law by the Governor. Administrative rules are completely different – they are introduced by the Governor, and then the legislature has three months to proactively vote them down. If they don’t, then administrative rules become effective.

    New state plumbing code: After more than a decade, Wisconsin’s plumbing codes 381-382 and 384-387 have been updated. This provides standards and definitions for the design, installation, and construction of plumbing systems across Wisconsin. The only code unchanged was SPS 383, which covers private on-site wastewater treatment systems and was updated by a separate committee. Wisconsin is the only state in the U.S. with its own plumbing code and includes a great deal of flexibility.

    Conclusion

    Despite the well-publicized disagreements between the governor and legislature that suggest a form of gridlock, there have been many noteworthy developments within the construction industry over the 2023-24 legislative session.

    This article was originally published on the State Bar of Wisconsin’s Construction and Public Contract Law Section Blog. Visit the State Bar sections or the Construction and Public Contract Law Section web pages to learn more about the benefits of section membership.





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    The Construction & Public Contract Law Section Blog is published by the State Bar of Wisconsin; blog posts are written by section members. To contribute to this blog, contact Mark Schmidt and review Author Submission Guidelines. Learn more about the Construction & Public Contract Law Section or become a member.

    Disclaimer: Views presented in blog posts are those of the blog post authors, not necessarily those of the Section or the State Bar of Wisconsin. Due to the rapidly changing nature of law and our reliance on information provided by outside sources, the State Bar of Wisconsin makes no warranty or guarantee concerning the accuracy or completeness of this content.

    © 2024 State Bar of Wisconsin, P.O. Box 7158, Madison, WI 53707-7158.

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