Under current law, the Wisconsin Health and Educational Facilities Authority
(WHEFA) may issue bonds to finance certain projects of health or educational
institutions, to refinance outstanding debt of health or educational institutions, and
to finance a purchase of the state's right to receive any of the payments under the
Attorneys General Master Tobacco Settlement Agreement of November 23, 1998.
Projects of health or educational institutions that may be financed include, among
others, the acquisition of a hospital, the construction or operation of an ambulatory
surgery center or home health agency, and the construction, remodeling, furnishing,
or equipping of a health or educational facility or related structure.
This bill authorizes WHEFA to issue bonds to finance any project undertaken
by a research institution for a research facility, or to refinance outstanding debt of
a research institution. A research institution is defined in the bill as an entity that
provides or operates a research facility. A research facility is defined in the bill as
a building, institution, place, or agency of a nonprofit entity that is or will be used
in whole or in part for the advancement of scientific, medical, or technological
knowledge and that does not have a specific commercial objective. Project activities
for which WHEFA may issue bonds include construction, acquisition, remodeling,
furnishing, and equipping of research facilities, related structures, and structures
or items that are useful for the operation of research facilities.
This bill provides a total of $2,630,000 in grant moneys to certain organizations
in the building trades to provide job training and retraining programs, including
training in green building and the installation of alternative energy systems. The
following organizations receive funds under this bill: 1) the Wisconsin Regional
Training Partnership/Building Industry Group Skilled Trades Employment
Program; 2) Painters and Allied Trades, District Council 7; 3) Wisconsin State
Council of Carpenters; 4) Wisconsin Pipe Trades Association, Local 75; 5) Wisconsin
Laborers' District Council; 6) Wisconsin Operating Engineers; and 7) International
Brotherhood of Electrical Workers. As a condition of receiving the grant moneys,
each organization must enter into a contract with Commerce that specifies
permissible uses of the grant moneys and requires the organization to comply with
reporting and accountability measures.
Business organizations and financial institutions
The federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008
(SAFE Act) establishes certain nationwide standards for mortgage loan originators.
If a state does not meet a certain level of compliance with the federal standards
established under the SAFE Act, the federal Department of Housing and Urban
Development must undertake the licensing and registration of mortgage loan
originators operating within that state. One required component under the SAFE
Act is that states must license and register mortgage loan originators through the
Nationwide Mortgage Licensing System and Registry (NMLSR).
This bill makes numerous changes, both substantive and stylistic, in the
statutes relating to the regulation of mortgage loan originators, mortgage brokers,
and mortgage bankers (mortgage regulatory provisions). The bill requires the
division of banking (division) in the Department of Financial Institutions (DFI) to
participate in NMLSR and authorizes the division to process and maintain mortgage
loan originator licenses through, and register mortgage loan originators with,
NMLSR.
The bill modifies various definitions applicable to all mortgage regulatory
provisions, thereby changing the scope of regulation. Under the bill, a "residential
mortgage loan" is any loan primarily for personal, family, or household use that is
secured by a lien or mortgage, or equivalent security interest, on a dwelling or
residential real property located in this state. With certain exceptions, a "mortgage
loan originator" under the bill is an individual who, for compensation or gain, takes
a residential mortgage loan application or offers or negotiates terms of a residential
mortgage loan. However, certain persons are exempt from all mortgage regulatory
provisions, including a mortgage loan originator who is an employee of a depository
institution or its regulated subsidiary and who is registered with NMLSR. A
"depository institution" is a federally chartered or state-chartered bank, savings
association, or credit union. The bill essentially maintains the current law
definitions of "mortgage banker" and "mortgage broker," but eliminates the
exceptions under current law to these definitions and replaces them with new
exceptions. Among the exceptions under the bill to the definitions of "mortgage
banker" and "mortgage broker" are depository institutions and regulated
subsidiaries of depository institutions.
The bill includes a number of changes to current law with respect to the
regulation of mortgage loan originators, including the following:
1. The bill requires that the division's licensing of mortgage loan originators be
processed through NMLSR and that all mortgage loan originator licensees be
registered with NMLSR.
2. The bill requires each applicant for a mortgage loan originator license to
furnish to NMLSR specified information concerning the applicant's identity,
including the applicant's fingerprints, personal history, and authorization for credit
and criminal history checks.
3. The bill specifies certain disqualifying factors preventing the issuance of a
mortgage loan originator license, including that the applicant has had a mortgage
loan originator license revoked or has been convicted of a felony within a specified
period. As derived from the SAFE Act, an applicant may be issued a mortgage loan
originator license only if the applicant has demonstrated financial responsibility,
character, and general fitness such as to command the confidence of the community
and to warrant a determination that the mortgage loan originator will operate
honestly, fairly, and efficiently under applicable law.
4. The bill modifies current law requirements related to professional education
and testing for mortgage loan originators. The bill modifies education and testing
requirements, requires each education course to be reviewed and approved by
NMLSR, and requires each test to be developed by NMLSR and administered by a
test provider approved by NMLSR.
5. The bill requires each mortgage loan originator to be covered by a surety
bond in an amount, as determined by the division, reflecting the dollar amount of
residential mortgage loans originated by the mortgage loan originator.
6. The bill requires each mortgage loan originator to submit to NMLSR an
annual report of condition.
7. Under the bill, each mortgage loan originator must be issued a unique
number or other identifier (unique identifier). The bill requires any person
originating a residential mortgage loan to place the person's unique identifier on all
residential mortgage loan application forms, solicitations, and advertisements.
8. The bill contains provisions relating to confidentiality of information
provided by the division to NMLSR, but allows NMLSR to provide public access to
information relating to the employment history of, and publicly adjudicated
disciplinary and enforcement actions against, mortgage loan originators. The
division must regularly report to NMLSR violations and enforcement actions
involving mortgage loan originators.
The bill also includes some changes to current law relating to the regulation of
mortgage bankers and mortgage brokers, including requiring mortgage bankers and
mortgage brokers to annually submit call reports to NMLSR and to maintain surety
bonds in the amount of $300,000 and $120,000, respectively, and a minimum net
worth of $250,000 and $100,000, respectively.
The bill creates a number of violations, and modifies certain current-law
violations, relating to prohibited acts and practices of mortgage bankers, mortgage
brokers, mortgage loan originators, and officers and directors of corporate mortgage
bankers and mortgage brokers, including the following:
1. The bill modifies and expands current law provisions to prohibit materially
false or deceptive statements or representations or knowing omissions of material
facts.
2. The bill prohibits mortgage bankers and mortgage brokers from paying
commissions to unassociated or unlicensed mortgage loan originators.
3. The bill prohibits mortgage bankers and mortgage brokers from conducting
business at an unlicensed office.
4. The bill prohibits the impeding of an investigation or examination or the
denial of access to or destruction of books, records, or other information that the
division is authorized to obtain.
5. The bill prohibits contracts with borrowers that provide in substance that
the mortgage banker, mortgage broker, or mortgage loan originator may earn a fee
through "best efforts" to obtain a residential mortgage loan even if no loan is actually
obtained for the borrower.
6. The bill prohibits the solicitation or advertisement of interest rates, points,
or other financing terms unless the terms are actually available at the time of the
solicitation or advertisement.
7. The bill prohibits assisting, aiding, or abetting any person in unlawfully
conducting mortgage-related business without a valid license.
8. The bill prohibits withholding payments or making payments, threats, or
promises for the purpose of influencing a person's independent judgment in
connection with a residential mortgage loan or withholding payments or making
payments, threats, or promises to a property appraiser for the purpose of influencing
the appraiser's independent judgment with respect to the value of the property.
9. The bill prohibits requiring a borrower to obtain property insurance coverage
in an amount exceeding the replacement cost of improvements on the property.
The bill increases the penalty for violations from a maximum of $2,000 to a
maximum of $25,000. This increase applies both to civil forfeitures imposed by the
division as administrative assessments and to criminal fines imposed by a court. The
bill does not change any term of incarceration for a violation. The bill expands the
number of violations for which these penalties are applicable. Under current law,
these penalties apply only to specified violations. Under the bill, these penalties may
be applied to any violation of a mortgage regulatory provision or of any rule
promulgated by the division under a mortgage regulatory provision. The bill allows
the division to order restitution in connection with a violation in the same manner
in which the division may impose an administrative assessment for the violation.
The bill expands the number of violations for which a civil cause of action may be
brought to correspond to the expansion of violations for which penalties are
applicable. The bill increases the maximum limit for recovery of certain damages in
civil actions from $2,000 to $25,000.
Housing
Under current law, Commerce awards grants and loans to low income persons
or families to defray housing costs and to community based organizations to provide
housing opportunities to low income persons and families. The grants and loans are
funded by general purpose revenue.
This bill directs Commerce to make a one-time grant of not more than $200,000
to the Tenant Resource Center in Madison, from the appropriation that funds the
grants and loans described above, to provide foreclosure education and assistance to
tenants. The bill increases the appropriation for fiscal year 2008-09 by $200,000.
courts and procedure
Under current law, if the owner of real property that is subject to a mortgage
defaults in making payments, the mortgagee, which is usually a financial
institution, may commence a foreclosure action. If the mortgagee prevails and
obtains a foreclosure judgment, the property owner (mortgagor) may redeem the
property before a sheriff's sale by paying the amount of the judgment to the clerk of
court. If the mortgagor does not redeem the property, it will be sold at a sheriff's sale
after six months to one year, depending on the type of property and whether the
mortgagor will owe a deficiency, which is the amount by which the judgment exceeds
the amount obtained at the sale.
This bill addresses foreclosure reconveyances. A foreclosure reconveyance is
defined as a transaction under which the mortgagor transfers title to residential real
property in foreclosure to a third party, called a foreclosure purchaser in the bill. The
foreclosure purchaser redeems the property and subsequently conveys, or promises
to subsequently convey, to the mortgagor (foreclosed homeowner) an interest in the
property that allows the foreclosed homeowner to remain in possession of the
property, such as an interest in a land contract, a purchase agreement, an option to
purchase, or a lease.
Under the bill, if a foreclosure purchaser enters into a foreclosure
reconveyance, it must be by a written contract. The bill specifies the information that
the contract must contain and requires that duplicate copies of a completed notice
of cancellation be attached to the contract. The foreclosed homeowner may cancel
the foreclosure reconveyance contract by delivering personally or by certified mail
a signed and dated notice of cancellation to the foreclosure purchaser within five
business days after the foreclosed homeowner signs the contract. The bill prohibits
any waiver of any of the foreclosure reconveyance provisions, except for the five-day
right to cancel the contract if the property is to be sold at sheriff's sale within those
five days and the foreclosed homeowner waives his or her right to cancel in a
handwritten statement.
The bill contains various prohibitions and requirements that apply generally
to foreclosure purchasers, including:
1. Prohibiting a foreclosure purchaser from entering into a foreclosure
reconveyance unless, among other things, the foreclosure purchaser verifies that the
foreclosed homeowner has the ability to pay for the subsequent conveyance of the
interest back to the foreclosed homeowner.
2. Requiring a foreclosure purchaser either to ensure that title to the dwelling
has been reconveyed to the foreclosed homeowner or to pay to the foreclosed
homeowner consideration of at least 82 percent of the fair market value of the
property within 150 days of either the eviction from the property of, or the voluntary
relinquishment of possession of the property by, the foreclosed homeowner. If the
foreclosure purchaser pays the foreclosed homeowner, the foreclosure purchaser
must provide a detailed accounting of the basis for the payment amount on a form
prescribed by the attorney general, in consultation with the secretary of agriculture,
trade and consumer protection.
3. Prohibiting a foreclosure purchaser from entering into repurchase or lease
terms, as part of the subsequent conveyance, that are unfair or commercially
unreasonable and from engaging in any other unfair conduct.
4. Prohibiting a foreclosure purchaser from acting as an advisor or consultant
or in any other manner representing that the foreclosure purchaser is acting on
behalf of the foreclosed homeowner.
5. Prohibiting a foreclosure purchaser from taking certain actions, such as
accepting from the foreclosed homeowner any instrument of conveyance of any
interest in the residence in foreclosure or transferring any interest in the residence
to a third party, before the time for the foreclosed homeowner to cancel the
transaction has fully elapsed.
The bill specifies penalties that apply if a foreclosure purchaser violates any of
the provisions, authorizes a court to order punitive damages for a violation, and
specifies that a violation shall be considered a fraud and that a foreclosed homeowner
may bring an action for damages. The bill also provides that a court must grant a
90-day stay in an eviction action if the property was the subject of a foreclosure
reconveyance and the defendant was the owner of the property, has continuously
occupied the property since it was conveyed to a third party, and has either
commenced an action concerning the foreclosure reconveyance or asserts fraud or
other deceptive practices in connection with the foreclosure reconveyance.
The bill also addresses foreclosure consultants. With numerous specified
exceptions, a foreclosure consultant is defined as a person who offers to a foreclosed
homeowner to perform for compensation any of various services that will assist the
foreclosed homeowner with the loan default or foreclosure, such as stopping the
foreclosure sale, assisting the foreclosed homeowner to obtain a loan, or saving the
property from foreclosure.
The bill provides that any agreement (contract) between a foreclosure
consultant and a foreclosed homeowner for the rendition of services must be in
writing, and that a foreclosed homeowner who enters into a contract for services with
a foreclosure consultant has the right to cancel the contract without penalty within
three days by delivering, personally or by certified mail, a notice of cancellation to
the foreclosure consultant. The bill specifies the information that the contract must
contain and requires that duplicate copies of a notice of cancellation be attached to
the contract.
The bill sets out actions by a foreclosure consultant that are violations and
provides that the Department of Agriculture, Trade and Consumer Protection
(DATCP) may investigate violations of the requirements under the bill and may
commence an action to restrain a violation or to recover a forfeiture for a violation.
The Department of Justice is required to furnish legal services to DATCP. The bill
also provides that any person suffering pecuniary loss because of a violation of the
requirements under the bill may commence an action against the violator.
Under current law, if property that is subject to a mortgage is leased after the
lien of the mortgage attaches, the lease is subject to termination if the interest of the
mortgagor terminates. Thus, the lease of a tenant to property that is subject to a
mortgage terminates and the tenant may be evicted, if the landlord loses the
property in a foreclosure action.
This bill requires the plaintiff in a foreclosure action against residential rental
property to provide the tenants of the property with notice that a foreclosure action
has been filed, notice that the plaintiff has been granted judgment, along with notice
of the date on which the redemption period ends, and notice of the date and time of
the hearing to confirm the sale of the property. The bill also requires a landlord to
notify any prospective tenant in writing that a foreclosure action has been
commenced and, if judgment has been entered, the date on which the redemption
period ends. In addition, the bill provides that a tenant may retain possession of the
rental unit for up to two months after the end of the month in which the sale of the
property is confirmed, and may withhold rent in the amount of the security deposit
for the last period during which the tenant actually retains possession of the rental
unit.
Under current law, the director of state courts has established a consolidated
electronic system that contains information about cases filed in the circuit courts in
the state, including both civil cases and criminal cases. This system, known as the
Consolidated Court Automation Programs (CCAP), contains a variety of information
about circuit court cases. The information regarding case data contained on the
CCAP system is available in the court's Internet Web site called the Wisconsin
Circuit Court Access (WCCA). This bill prohibits the placing of any information on
a civil action concerning the removal of a tenant from a residential rental property
in the WCCA Internet Web site if that removal was the result of a mortgage
foreclosure of the residential rental property.
Education
This bill directs the Wisconsin Technical College System Board to award to
technical college district boards at least $1,000,000 annually in training program
grants for training in advanced manufacturing skills, with priority given to welding.
Health and human services
Hospital assessment and Medical Assistance
Under current law, the state assesses hospitals a total of $1,500,000 each year.
The amount each hospital pays is allocated in proportion to the hospital's gross
private pay revenues. The hospital assessment revenue is used to support the
Medical Assistance (MA) Program, long-term care programs, and community-based
mental health services.
This bill increases the amount of the hospital assessment to $275,445,110 for
state fiscal year (SFY) 2008-09. The bill provides that the amount of the assessment
in future years shall be established in the biennial budget act. The bill charges the
total assessment amount against eligible hospitals in proportion to their gross
patient revenues. Under the bill, all hospitals in the state other than critical access
hospitals, institutions for mental diseases, and certain psychiatric hospitals that are
not a satellite of an acute care hospital from the assessment are eligible hospitals.
The bill provides that a specified portion of the assessment revenue shall be
used to pay hospitals for services provided under MA and transfers the remaining
amount of assessment revenue to the MA trust fund. Under the bill, the amount
allocated to hospitals for MA services in SFY 2008-09, including both the state and
federal share under MA, is the amount of the hospital assessment revenue divided
by 57.75 percent, which is $476,961,200. In SFY 2008-09, $79,604,800 in
assessment revenue is transferred to the MA trust fund. Of the amount transferred
to the MA trust fund, 0.5 percent ($398,000) is appropriated to the Department of
Health Services (DHS) for the administrative costs associated with the hospital
assessment and the other $79,206,800 is appropriated for MA. For SFY 2008-09, the
bill also appropriates general purpose revenue in the amount of $750,000 for
supplemental payments to certain rural hospitals in counties that border another
state. Finally, in SFY 2008-09, the bill reduces the amount of general purpose
revenues appropriated for MA by $78,456,800.
Beginning in SFY 2009-10, the amount of payments to hospitals for MA
services from hospital assessment revenue plus the federal share of MA is equal to
the amount of the total assessment revenue divided by 61.68 percent. The remainder
of the hospital assessment revenue is transferred to the MA trust fund. One-half of
one percent of the transferred amount is appropriated to DHS for administrative
costs associated with the hospital assessment. Also beginning in SFY 2009-10, the
bill requires DHS to pay the University of Wisconsin Hospitals and Clinics
$3,000,000 annually from the MA trust fund for the costs of providing
uncompensated care.
The bill provides that DHS shall spend the portion of the hospital assessment
revenue that is allocated to pay for hospital services under MA on the following:
increased reimbursement for eligible hospitals that are reimbursed on a
fee-for-service basis; payments to health maintenance organizations (HMOs) that
the HMOs must use to increase reimbursement to eligible hospitals; an increase of
$2,744,000 in supplemental payments to certain rural hospitals; $8,000,000 in
supplemental payments to hospitals that satisfy criteria established by the
American College of Surgeons for classification as a Level I adult trauma center; and
supplemental payments to hospitals based on performance, under a methodology
developed by DHS.
The bill provides that if the federal government does not pay the federal share
under MA for any payment made with hospital assessment revenue, DHS must
refund to hospitals the amount of the hospital assessment revenue used to make the
payment. DHS must make refunds to hospitals in proportion to the percent of the
assessment that the hospitals paid. In addition, DHS must recoup any payments
that are made with hospital assessment revenue and for which the federal
government does not pay the federal share under MA.
In addition to the decrease in general purpose revenue appropriated for MA in
association with the hospital assessment, the bill increases the amount of general
purpose revenue appropriated for MA for SFY 2008-09 by $50,000,000.
Under current law, a hospital must be approved by DHS to operate in this state.
Upon approval, DHS issues a hospital a certificate of approval. This bill provides
that DHS must issue a single hospital certificate of approval for the University of
Wisconsin Hospitals and Clinics Authority (UWHCA) that applies to all of UWHCA's
inpatient and outpatient facilities that satisfy DHS's requirements for a hospital and
for which UWHCA requests approval. The bill also provides that all facilities listed
on the hospital certificate of approval for UWHCA are a hospital for purposes of
reimbursement under MA.
Public assistance
Under current law, $365,197,900 in federal block grant aids is appropriated to
the Department of Children and Families (DCF) in fiscal year 2008-09 for aids to
individuals and organizations. Of that amount, $355,352,000 is allocated for child
care services for persons participating in the Wisconsin Works (W-2) program. This
bill increases that appropriation by $47,175,000 and that allocation by $20,384,400.
The bill also increases allocations for fiscal year 2008-09 of federal child care
development funds and federal moneys received under the Temporary Assistance for
Needy Families block grant program for emergency assistance and child care
administration.
Under current law, $121,021,700 in general purpose revenue is appropriated
to DCF in fiscal year 2008-09 for administration and benefits payment under the
W-2 program and other Temporary Assistance to Needy Families programs. This
bill decreases that appropriation by $22,529,000.
state government
This bill requires the secretary of administration to lapse or transfer to the
general fund from the unencumbered balances of appropriations to executive state
agencies, other than sum sufficient appropriations and appropriations of federal
revenues, an amount equal to $125,000,000 before July 1, 2011. Under the bill, all
executive branch state agencies, except for the Investment Board and the
Department of Employee Trust Funds, are subject to the lapse and transfer
provisions. The bill also requires the cochairpersons of the Joint Committee on
Legislative Organization to take actions before July 1, 2011, to ensure that from
general purpose revenue appropriations to the legislature an amount equal to
$500,000 is lapsed from sum certain appropriation accounts or is subtracted from the
expenditure estimates for any other types of appropriations, or both. The lapse from
appropriations to the legislature is included as part of the $125,000,000 lapse and
transfer requirement.
Current statutes contain a rule of proceeding that provides that no bill may be
adopted by the legislature if the bill would cause in any fiscal year the amount of
moneys designated as "Total Expenditures" in the general fund summary for that
fiscal year, less any amounts transferred to the budget stabilization fund in that
fiscal year, to exceed the sum of the amount of moneys designated as "Taxes" and
"Departmental Revenues" in the general fund summary for that fiscal year. This bill
provides that this requirement does not apply to the 2008-09 fiscal year.
This bill increases the legislature's role in approving the expenditure of federal
economic stimulus funds during the 2008-09 fiscal year and the 2009-11 fiscal
biennium. Under the bill, "federal economic stimulus funds" are defined to mean
federal moneys received by the state beginning on the bill's effective date and ending
on June 30, 2011, pursuant to federal legislation enacted during the 111th Congress
for the purpose of reviving the economy of the United States. The bill involves the
legislature in approving the expenditure of federal economic stimulus funds in two
general ways.
First, the bill provides that, as soon as practical after the receipt of any federal
economic stimulus funds by the state, the governor must submit to the Joint
Committee on Finance (JCF) a plan or plans for the expenditure of the federal
economic stimulus funds. After receiving the plan or plans, the cochairpersons of
JCF may direct the governor to implement the plan or plans. In lieu of directing the
governor to implement the plan or plans, the cochairpersons must convene a meeting
of JCF within 14 days after the plan or plans are submitted to either approve or
modify and approve the plan or plans. The governor shall then implement the plan
or plans as approved by JCF. The bill requires that a separate plan be submitted for
transportation expenditures. This process, however, does not apply to federal
economic stimulus funds the expenditure of which is contained in any bill introduced
in either house of the legislature at the request of the governor. If for any reason a
project specified in a plan cannot be completed on a timely basis, or if federal
economic stimulus funds cannot be expended as proposed in the plan, the governor
must submit a revised plan to the cochairpersons of JCF. The revised plan may only
be implemented if approved by JCF using the procedures specified in this paragraph.
Second, the bill creates a new procedure for review of the use of federal economic
stimulus funds for state building projects. Currently, with certain exceptions, the
Building Commission is prohibited from authorizing the design, construction, repair,
remodeling, or improvement, or the acquisition of land by the state for the
construction, repair, remodeling, or improvement of any state building, structure, or
facility for any project costing more than $500,000, regardless of funding source,
unless the project is enumerated by law in the Authorized State Building Program.
This bill provides that, if a state building, structure, or facility is proposed to
be designed or constructed, if an existing state building, structure, or facility is
proposed to be repaired, remodeled, or improved, or if land is proposed to be acquired
by the state for any such purpose, and the design, construction, repair, remodeling,
improvement, or acquisition is proposed to be financed solely with federal economic
stimulus funds, the project, if approved by JCF as part of a plan, is not subject to an
enumeration requirement.
Current statutes contain a rule of proceeding governing legislative action on
certain bills. Generally, the rule provides that no bill directly or indirectly affecting
general purpose revenues may be adopted if the bill would cause the estimated
general fund balance on June 30 of any fiscal year to be less than a certain amount
of the total general purpose revenue appropriations for that fiscal year. For fiscal
year 2008-09, the amount is $65,000,000. This bill provides that this requirement
does not apply to the 2008-09 fiscal year.
The bill makes the following changes to the loan program administered by the
Board of Commissioners of Public Lands (BCPL):
1. Provides that any borrower, after January 1 and before September 1 in any
year, may prepay one or more installments of a state trust fund loan in advance of
the due date and that all interest upon the advance payment terminates. Currently,
a borrower may do this only after March 15 and before August 1 in any year.
2. Requires that borrowers repay loans directly to BCPL and not to the
secretary of administration.
3. With respect to loans to counties, provides that a county must demonstrate
to BCPL that the loan is for the purpose of acquiring or installing energy efficient
equipment. Currently, counties must demonstrate to BCPL that the loan is for one
of a number of enumerated purposes, or satisfies certain conditions, which do not
specifically include the acquisition or installation of energy efficient equipment.
4. Clarifies the conditions under which school districts may receive short-term
loans of ten years or less from BCPL without the approval of the electors of the school
districts. These conditions are currently specified in chapter 67 of the Wisconsin
Statutes, by cross-reference, and this bill recreates these conditions in chapter 24
of the Wisconsin Statutes.
taxation
Income taxation
Under current law, a person may claim a credit against the person's income or
franchise tax liability that is equal to 10 percent of the amount that the person paid
in the taxable year for dairy manufacturing modernization or expansion related to
the claimant's dairy manufacturing operation. If the amount of the credit exceeds
the amount of the person's tax liability, the person receives a refund. Under current
law, dairy cooperatives are, generally, not subject to state income or franchise taxes
and, therefore, are not eligible to claim the credit for dairy manufacturing
modernization or expansion.
This bill allows the members of a dairy cooperative to claim the credit for the
dairy manufacturing modernization or expansion expenses paid by the cooperative.
The dairy cooperative determines the amount of the credit that each member may
claim, based on the amount of milk each member delivers to the cooperative.
This bill requires that all related corporations file a combined report for state
income and franchise tax purposes and calculate their state tax liability based on the
business activity of all the related corporations.
This bill provides an income and franchise tax credit for 10 percent of the
amount that a person pays in the taxable year for meat processing modernization or
expansion related to the person's meat processing operation.
Under current law, a person may claim as credit against the person's income or
franchise tax liability, in each of two consecutive taxable years, 12.5 percent of the
person's investment in a qualified new business venture, as determined by
Commerce. The maximum amount of a person's investment that can be used as the
basis for the credit is $2,000,000 and a business may receive no more than $1,000,000
in investments that qualify for the credit.
Under this bill, a person may claim an income and franchise tax credit equal
to 25 percent of the person's investment in a qualified new business venture. The bill
allows a person to use more than $2,000,000 in investments as the basis for the credit
and to transfer the amount of any unused credit to another taxpayer.
Under current law, a person must add to the person's taxable income the
amount of any deduction the person claimed for interest expenses and rental
expenses paid to a related entity, unless the expenses are paid primarily for business
purposes and not in order to avoid taxes. Under this bill,a person must add to the
person's taxable income the amount of any deduction the person claimed for interest
expenses, rental expenses, intangible expenses, and management fees paid to a
related entity, unless the expenses or fees are paid primarily for business purposes
and not in order to avoid taxes.
Other taxation
This bill adopts the substantive provisions of the Main Street Equity Act for
purposes of administering and collecting state, county, and stadium district sales
and use taxes. The act is intended to modernize sales and use tax administration for
the states that adopt the act and to encourage out-of-state retailers to collect the
state, county, and stadium district sales and use taxes voluntarily. Under current
federal law, generally, an out-of-state retailer who sells tangible personal property
or services to customers in this state is not required to collect the sales tax or use tax
imposed on such sales, if the retailer has no physical presence in this state. See Quill
v. North Dakota, 504 U.S. 298; 112 S. Ct. 1904 (1992).
This bill also imposes sales and use taxes on specified digital goods and
additional digital goods. "Specified digital goods" are digital audio works, digital
audiovisual works, and digital books. "Additional digital goods" means greeting
cards, finished artwork, periodicals, and video or electronic games, if all such items
are transferred electronically. Under the bill, the sale of specified digital goods or
additional digital goods that are transferred electronically to the purchaser are
exempt from the sales and use taxes, if the sale of the goods in tangible form is exempt
from the sales and use taxes.
transportation
