Rule-making notices
Notice of Hearing
Wisconsin Emergency Management is proposing to repeal ch.
WEM 4, relating to the hazardous materials transportation registration program and to amend ch.
WEM 6 relating to reimbursement procedures for regional and local emergency response teams.
This pubic hearing is being held in order to comply with administrative rule procedures which require a public hearing to be held on proposed rules.
NOTICE IS HEREBY GIVEN that pursuant to ss.
166.20 (2) (a),
(b),
(bm) and
(bs), and
227.11 (2) (a), Stats., and interpreting ss.
166.20 (1) (f) (fm) (g),
(ge) (gi) (k),
(2) (bm) and
(bs),
166.215 (2) and
(3) and
166.22, Stats., Wisconsin Emergency Management will hold a public hearing to consider the repeal of ch.
WEM 4 relating to the hazardous materials transportation program and to consider amendments to ch.
WEM 6 relating to reimbursement procedures for regional and local emergency response teams. The public hearing is scheduled as follows:
Hearing Date, Time and Location
Date: August 27, 2002
Time: 10:00 a.m.
Location: Department of Military Affairs
Auditorium
2400 Wright Street
Madison, Wisconsin
Persons making oral statements are requested to submit their comments in writing either at the time of the hearing or no later than August 30, 2002. Persons unable to make an oral statement may submit written comments which will have the same weight and effect as oral statements presented at the hearings. All written comments should be submitted to William Clare, Wisconsin Emergency Management, 2400 Wright Street, P.O. Box 7865, Madison, WI 53707-7865 and must be received no later than August 30, 2002. Persons with questions regarding this proposed rule may contact William Clare at the above address or phone 608-242-3220.
The hearing site is fully accessible to people with disabilities.
Analysis Prepared By Wisconsin Emergency Management
Plain Language Summary
The statutory authority for ch. WEM 4, relating to a hazardous materials transportation registration program, no longer exists, and this proposal repeals ch. WEM 4 in its entirety. The proposal to amend ch. WEM 6 would modify reimbursement procedures to reflect a change in statutory language allowing reimbursement for potential releases of hazardous materials as well as to actual releases. It would also require regional and local response teams to utilize an agency-approved hazardous materials incident response matrix to be eligible for reimbursement under ch.
WEM 6 and would establish limits for reimbursement of potential releases. The proposed change would also clarify that administrative costs are eligible for reimbursement and that costs recovered from responsible parties would be placed in the emergency response supplement under s.
20.465 (3) (dr) Stats.
SECTION 1. Chapter WEM 4 is repealed.
SECTION 2. WEM 6.02 (1), (2) and (12) are amended to read:
WEM 6. 02 (1) “Authorized level A response team" means a regional emergency response team, a member of such team and a local agency that contracts with the division for the provision of regional response team services pursuant to a designation under s.
166.215 (1), Stats.
WEM 6.02 (2) “Authorized level B response team" means a
local county emergency response team, a member of such a team, and the city, county, village or town that contracts to provide the emergency response team to the county pursuant to a designation under s.
166.21 (2m) (e), Stats.
WEM 6.02 (12) “Responsible party" means any person, as defined in s.
299.01(10), Stat. or
42 USC 9607(a), who
possesses or controls a hazardous substance that is released or discharged or who causes the release or discharge of a hazardous substance is responsible for the emergency involving a release or potential release of a hazardous substance under s. 166.215 (3) or 166.22 (4), Stats. or a person who is found to have abandoned containers, as defined under s.
292.41 (1), Stats., that are releasing or discharging a hazardous substance to which a response team was called to respond.
SECTION 3. WEM 6.04 (1), (2), (3) are amended to read:
WEM 6.04 (1) Reimbursement for vehicles and apparatus at uniform rates established in the contracts for regional hazardous material response team services or the rate established by the reviewing entity for the authorized level B response Team;.
WEM 6.04 (2) Response team personnel expenses which may reflect replacement personnel costs and indirect charges and costs for wage, fringe, death and duty disability retirement benefits; and.
WEM 6.04 (3) Necessary and reasonable emergency expenses related to response team services rendered based on actual expenditures;.
SECTION 4. WEM 6.04 (4) is created to read:
WEM 6.04 (4) Administrative costs incurred to collect response costs from a responsible party.
(a) For a level B response to an emergency in which there is a potential release of a hazardous substance, the maximum eligible reimbursement cost may not exceed $500 for the initial response assessment except as provided under s.
6.04 (4) (b).
(b) Costs that exceed $500 for a level B response to an emergency, in which there is a potential release of a hazardous substance and for which a hazardous substance is present, shall be justified and documented.
(c)
Response teams are not eligible for reimbursement costs that exceed $500 for level B responses where the bill of lading or manifest indicate that a hazardous substance is not present and for which the bill of lading or manifest is readily accessible to the response team during the emergency response.
SECTION 5. WEM 6.05 (4) (a), (b), (c) are renumbered WEM 6.05 (4) (b), (c), (d).
SECTION 6. WEM 6.05 (4) (a) is created to read:
WEM 6.05 (4) (a) The hazardous materials incident response matrix used by a regional or local response team to determine the initial response to an emergency.
SECTION 7. WEM 6.05 (5) (g) is created to read:
WEM 6.05 (5) (g) The hazardous materials incident response matrix was used by the regional or local emergency response team to determine the appropriate initial response to the emergency.
SECTION 8. WEM 6.12 is amended to read:
If costs subsequently are recovered from responsible parties or other sources after the response team has received reimbursement from the division, the response team shall return the recovered costs to the division, for deposit into the state transportation fund emergency response supplement under s. 20.465 (3) (dr) Stats.
SECTION 9. WEM 6.13 (1) (intro) is created to read: WEM 6.13 (1) (intro) The regional and local response team appeals process is as follows:
SECTION 10. WEM 6.13 (1) to (5) are renumbered to read 6.13 (1) (a) to (e):
SECTION 11. WEM 6.13 (2) is created to read:
WEM 6.13 (2) The responsible party appeals process is as follows:
(a)
A responsible party shall have 30 days after a final determination by the reviewing entity under s.
166.22 (5) (c) in which to file an appeal with the division.
(b)
A responsible party may appeal emergency response costs of a potential release of a hazardous substance for which a hazardous substance is present that exceed $500.
(c)
Following an appeal to the division, a responsible party may then request a problem resolution process in which the adjutant general of the department of military affairs reviews the response team claim and issues a decision based on those materials or meets with the parties to negotiate an acceptable resolution.
SECTION 12. WEM 6.13 (note) is amended to read:
Note: A claim for reimbursement form, DMA Form 96 (4/97) and, an expedited reimbursement claim form, DMA Form 59 (4/97), and a Hazardous Materials Incident Response Matrix, DMA Form 1060, can be obtained by contacting the Hazardous Materials Safety/Transportation Coordinator, Wisconsin Emergency Management, 2400 Wright Street, Room 213, P.O. Box 7865, Madison, WI 53707-7865, telephone 608-242-3228. The completed reimbursement claim, Hazardous Materials Incident Response Matrix, and supporting documentations shall be mailed to the Hazardous Materials Safety/Transportation coordinator, Wisconsin Emergency Management, 2400 Wright Street, Room 213, P.O. Box 7865, Madison, WI 53707-7865.
Fiscal Estimate
The statutory authority for ch. WEM 4 has been repealed. The previous version of ch. WEM 4 was determined to be unconstitutional by the Wisconsin Court of Appeals and the current version has not been enforced since that time. There are no costs associated with the repeal of ch.
WEM 4. The amendments to ch.
WEM 6 allow for the State of Wisconsin and local and regional emergency response teams to collect emergency response costs from the responsible party in the event of a potential release of a hazardous material. A responsible party is currently responsible for costs associated with the emergency response to a release of a hazardous material. This rule clarifies that necessary response costs include the potential release of a hazardous material. Money collected by the State of Wisconsin under this rule will be deposited into the emergency response supplement. Money collected by response teams would be used to offset their costs. There are several such incidents annually and the ability to collect these costs means that they would be paid by the responsible party if identified and able to pay. It is estimated that costs to respond to a potential release would typically be $500 or less. This could mean a decrease in payments from the emergency response supplement.
Initial Regulatory Flexibility Analysis
The statutory authority for ch. WEM 4 has been repealed. The previous version of ch. WEM 4 was determined to be unconstitutional by the Wisconsin Court of Appeals and the current version has not been enforced since that time. The repeal of ch. WEB 4 will have no effect on small business.
The amendments to WEM 6 allow for the State of Wisconsin and local and regional emergency response teams to collect emergency response costs from the responsible party in the event of a potential release of a hazardous material. A responsible party is currently responsible for costs associated with the emergency response to a release of a hazardous material. This rule clarifies that necessary response costs include the potential release of a hazardous material. It is estimated that costs to respond to a potential release would typically be $500 or less. To date there have not been more than 3 such incidents annually. This rule change will not have a significant economic impact on a substantial number of small businesses.
Notice of Hearing
Notice is hereby given that pursuant to s.
977.02 (2m) and
977.02 (3) Stats., and interpreting s.
977.07 Stats., the Office of the State Public Defender will hold a public hearing at 315 North Henry Street, 2
nd Floor, in the city of Madison, Wisconsin, on the
26th day of August 2002, from 1:00 p.m. to 3:00 p.m. to consider the amendment of a rules, ss.
PD 2.08 (3),
3.038 (1) (b),
3.038 (1) (c),
2.01,
2.02,
2.03,
2.08,
3.03,
3.038 (1) (a),
3.039,
3.05,
3.055 and
3.06,
related to determinations of indigency. Reasonable accommodations will be made at the hearing for persons with disabilities.
Analysis Prepared by the Office of the State Public Defender
The proposed changes to the administrative code comply with ch.
977, Stats. and serve to clarify and simplify the process of determining the financial eligibility of prospective clients. A number of the amendments replace references to indigency or indigent with eligibility or eligible. Chapter
977 provides a statutory financial eligibility standard for appointment of counsel by the agency, which is different from a constitutional determination of indigency by a court. The purpose of these amendments is to resolve the confusion between the constitutional concept of indigency and the use of the word in the context of state public defender representation. The amendments to s.
PD 3.03 (1) (c) and
3.03 (2) are intended to simplify the form and process of eligibility determinations. Simplification of the form and process of eligibility determinations allows more cost-effective use of staff time. The amendments to s.
PD 3.03 (1) (c) affect few applicants according to our database of eligibility determinations. In addition, a survey of lending institutions has demonstrated that money is rarely loaned on the basis of vehicles of $10,000 or less in equity. The amendments are consistent with the treatment of non-liquid assets by W2. Likewise, the amendments to s.
PD 3.03 (2) remove expenses that are rarely determinative of eligibility. Further, if these debts are reduced to formal court judgments they may be considered under the general category of court-ordered obligations. The amendment to s.
PD 3.055 simply clarifies that the state public defender should treat voluntary reduction in hours the same as quitting a job when the action is motivated by the intent to qualify for state public defender assigned counsel. The repeal of s.
PD 3.038 (1) (b) conforms the rule to current law and practice. The repeal of s.
PD 3.038 (1) (b) reflects the fact that the concept of partially indigent is no longer relevant to adult applicants for state public defender assignment of counsel. The concept of a partially indigent applicant predated the collections program initiated in 1996. Prior to 1996, applicants found indigent paid nothing and applicants found partially indigent were required to pay something towards the cost of representation. Under the current collections program all eligible applicants are subject to the collections program. The amendment to s.
PD 3.05 (1) conforms the rule to current law and practice. At one time children entitled to appointment of counsel under the juvenile or mental health laws were required to complete an eligibility evaluation. Current law does not require a determination of eligibility for children entitled to appointment of counsel. The adult applicant for appointment of counsel who lacks the mental capacity to understand the contents of the eligibility evaluation form or the process presents a difficult situation for staff. Unlike the applicant who is unwilling to provide the required information, the mentally ill or developmentally disabled client is usually unable to provide reliable information. It is often possible for staff to obtain reliable information from family or medical staff regarding the person's income and assets. Providing this exception to subsection (1) allows staff to be more efficient in their eligibility determinations.
Statute interpreted: s.
977.07, Stats.
Fiscal Estimate
It is anticipated that the rule changes will have no fiscal impact. Copies of the full fiscal estimates are freely available from the contact person.
Initial Regulatory Flexibility Analysis
The proposed amendment would not have a regulatory effect on small businesses.
Contact Person
For copies of the proposed amendment to the rule, or if you have questions, please contact Deborah Smith, Legal Counsel, 315 North Henry Street, Madison, WI 53703-3018; (608) 261-8856.
Written Comments
Written comments regarding this rule may be submitted in addition to or instead of verbal testimony at the public hearing. Such comments should be addressed to the contact person at the address stated above, and must be received by August 26, 2002.
Notice of Hearing
NOTICE IS HEREBY GIVEN that pursuant to s.
977.02 (5), Stats., and interpreting s.
977.08 (3) Stats., the Office of the State Public Defender will hold a public hearing at 315 North Henry Street, 2
nd Floor, in the city of Madison, Wisconsin, on the
26st day of August 2002, from 9:00 a.m. to 11:00 a.m. to consider the amendment of a rule, s.
PD 1.04 (5), related
to the certification for appellate cases. Reasonable accommodations will be made at the hearing for persons with disabilities.
Analysis Prepared by the Office of the State Public Defender
Section
977.02 (5) requires that the State Public Defender Board promulgate rules “establishing procedures to assure that representation of indigent clients by the private bar at the initial stages of cases assigned under this chapter is at the same level as the representation provided by the State Public Defender." Section
PD 1.04 (5) is the original rule relating to appellate certification that was promulgated as required by statute. Based on agency experience and research the OSPD considers it a “best practice" to provide a period of provisional certification during which supervisory staff review private bar performance on appellate appointments. This review of performance of private bar attorneys would be similar to that required for staff attorneys. The proposed amendment would help to assure that representation by the private bar is at the same level as representation provided by the State Public Defender.
The proposed rule would amend s.
PD 1.04 (5) to provide for provisional certification of private attorneys seeking to be certified for appellate appointments to allow for performance reviews by agency supervisors. The proposed rule would also allow the Director of the Appellate Division to place an attorney previously certified for appellate cases on provisional certification status in lieu of decertification.
The proposed rule would also correct two cross references in s.
PD 1.04 (5).
Statutory authority for rule: s.
977.02 (5) Stats.
Fiscal Estimate
It is anticipated that the rule changes will have no fiscal impact. Copies of the full fiscal estimates are freely available from the contact person.
Initial Regulatory Flexibility Analysis
The proposed amendment would not have a regulatory effect on small businesses.
Contact Person
For copies of the proposed amendment to the rule, or if you have questions, please contact Deborah Smith, Legal Counsel, 315 North Henry Street, Madison, WI 53703-3018; (608) 261-8856.
Written Comments
Written comments regarding this rule may be submitted in addition to or instead of verbal testimony at the public hearing. Such comments should be addressed to the contact person at the address stated above, and must be received by August 26, 2002.
Notice of Hearing
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Department of Regulation and Licensing in ss.
227.11 (2) and
448.02 (cm), Stats., and interpreting s.
448.02 (cm), Stats., the Department of Regulation and Licensing will hold a public hearing at the time and place indicated below to consider an order create ch.
RL 222, relating to the extension of disciplinary action time limits for the Medical Examining Board.
Hearing Date, Time and Location
Date: August 26, 2002
Time: 10:00 A.M.
Location: 1400 East Washington Avenue
Room 179A
Madison, Wisconsin
Appearances at the Hearing
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Administrative Rules, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received by August 27, 2002 to be included in the record of rule-making proceedings.
Analysis prepared by the Department of Regulation and Licensing
Statutes interpreted: s.
448.02 (cm), Stats.
Section
448.02 (3) (cm), Stats., establishes certain time limits for the Medical Examining Board to initiate disciplinary action against physicians. The board may request the Secretary of the Department of Regulation and Licensing to grant an extension to those time limits. This proposed rule-making order describes how a request is made and the factors to be considered fin determining whether to grant an extension.
The request for an extension must be made in writing and shall include the nature and date of the investigation, the extension of time to determine whether a physician is guilty of unprofessional conduct or negligence, and the reasons why the board has not made a decision within the time specified.
Section
RL 222.02, Wis. Adm. Code, creates definitions of terms used in the statutes. The four definitions are “allegation involving the death of a patient;" “board," “initiate disciplinary action," and “initiating an investigation."
Section
RL 222.03, Wis. Adm. Code, summarizes the information needed for a request. In determining whether a specified extension of time is necessary for the board to determine whether there is probable cause for the extension the secretary shall take into consideration the nature and complexity of the investigation, the quantity and quality of evidence, the cause of any delays in the investigation, and the extent to which the person will be prejudiced by an extension of time.
The board may initiate disciplinary action against a physician no later than one year after initiating an investigation involving the death of a patient and no later than 3 years after initiating an investigation of any other allegation, unless the board shows that an extension of time is necessary.
Fiscal Estimate
1. The anticipated fiscal effect on the fiscal liability and revenues of any local unit of government of the proposed rule is: $0.00.
2. The projected anticipated state fiscal effect during the current biennium of the proposed rule is: $0.00.
3. The projected net annualized fiscal impact on state funds of the proposed rule is: $0.00.
Initial Regulatory Flexibility Analysis
These proposed rules will be reviewed by the department through its Small Business Review Advisory Committee to determine whether there will be an economic impact on a substantial number of small businesses, as defined in s.
227.114 (1) (a), Wis. Stats.
Copies of Rule and Contact Person
Copies of this proposed rule are available without cost upon request to: Pamela Haack, Department of Regulation and Licensing, Office of Administrative Rules, 1400 East Washington Avenue, Room 171, P.O. Box 8935, Madison, Wisconsin 53708 (608) 266-0495.
Notice of Hearing
Notice is hereby given that, pursuant to s.
227.11 (2) (a), Stats., and interpreting ss.
77.51 (17m) and
(21m),
77.52 (2) (a) 5. and
5m.,
(2m) and
(3m) and
77.525, Stats., the Department of Revenue will hold a public hearing at the time and place indicated below, to consider the amendment of sales tax rules relating to communication services.
Hearing Information
The hearing will be held at 9:00 a.m. on Monday, August 26, 2002, in Room 6N-8 (6th floor) of the State Revenue Building, located at 2135 Rimrock Road, Madison, Wisconsin.
Handicap access is available at the hearing location.
Analysis prepared by the Department of Revenue
SECTION 1. Tax 11.66 (title) is revised, to remove cable television system services and to clarify that the section applies to telecommunications services and telecommunications message services.
SECTION 2. Tax 11.66 (1) (a) is repealed. This definition is no longer needed because of the repeal of Tax 11.66 (4) (d).
SECTIONS 3 AND 4. Tax 11.66 (1) (b) is renumbered Tax 11.66 (1) (a) and new sub. (1) (b) is created, to provide a reference to the statutory definition of “telecommunications services."
SECTIONS 5 TO 8. Tax 11.66 (2) (intro.), (a) and (b) (intro.) and 1. to 5. are renumbered Tax 11.66 (2) (a) (intro.), 1. and 2. (intro.) and a. to e. and new sub. (2) (intro.), (a) (title) and (b) are created, to clarify the content of sub. (2) and list the types of services discussed in Tax 11.66.\
Tax 11.66 (2) (a) 1. as renumbered is revised and examples are added, to reflect the tax treatment of certain telecommunications services that originate or terminate in Wisconsin.
SECTIONS 9 TO 14. Tax 11.66 (3) (title) and (intro.) are revised, sub. (3) (d) is repealed, sub. (3) (a), (b), (c) and (e) to (L) and (m) are renumbered sub. (3) (a) 1., 2., 3., 4. to 11. and 15. and sub. (3) (a) (intro.) is created, to clarify the content of sub. (3) and to remove cable television system services from Tax 11.66 because they are taxed separately from telecommunications services.
Tax 11.66 (3) (a) 1. as renumbered and the example are revised, to reflect the tax treatment of certain telecommunications services that originate or terminate in Wisconsin, as a result of the amendment of s.
77.52 (2) (a) 5., Stats., by
1997 Wis. Act 27.
SECTION 15. Tax 11.66 (3) (a) 12., 13. and 14. are created, to list additional services.
Tax 11.66 (3) (b) is created, to list telecommunications message services as taxable services, as a result of the creation of s.
77.52 (2) (a) 5m., Stats., by
1997 Wis. Act 27.
SECTIONS 16 AND 17. Tax 11.66 (4) (intro.) and (c) are revised, to correct grammar and punctuation in conformity with Legislative Council Rules Clearinghouse standards, and to clarify that the sale of the services to the reseller are nontaxable because they are resold.
Tax 11.66 (4) (a) is revised and sub. (4) (d) is repealed and recreated, and the example at the end of sub. (4) (d) is removed, to reflect the tax treatment of certain telecommunications services which originate or terminate in Wisconsin, as a result of the amendment to s.
77.52 (2) (a) 5., Stats., by
1997 Wis. Act 27.
SECTIONS 18 TO 20. Tax 11.66 (4) (e) is repealed to remove nonmechanical telephone answering services from the listing of nontaxable services, as a result of the creation of s. 77.52 (2) (a) 5m., Stats., by
1997 Wis. Act 27. Sub. (4) (f) is renumbered sub. (4) (e) and revised to clarify that the sale of the services to the interexchange carrier are nontaxable because they are resold.
Tax 11.66 (5) is renumbered Tax 11.66 (7) and new sub. (5) is created, to reflect the tax treatment of prepaid telephone calling cards and authorization numbers, as a result of the amendment to s.
77.52 (2) (a) 5., Stats., and the creation of s.
77.52 (3m), Stats., by
1997 Wis. Act 237.
Tax 11.66 (6) is created, to reflect the credit for taxes paid to other states, as a result of the creation of s.
77.525, Stats., by
1997 Wis. Act 27.
SECTION 1. Tax 11.66 (title) is amended to read:
Tax 11.66 (title) Telecommunications and CATV telecommunications message services.
SECTION 2. Tax 11.66 (1) (a) is repealed.
SECTION 3. Tax 11.66 (1) (b) is renumbered Tax 11.66 (1) (a).
SECTION 4. Tax 11.66 (1) (b) is created to read:
Tax 11.66 (1) (b) “Telecommunications services" has the same meaning as in s.
77.51 (21m), Stats.
Note to Revisor: Move the note that follows Tax 11.66 (1) (b) before renumbering to follow Tax 11.66 (1) (a) as renumbered, and add the following note after Tax 11.66 (1) (b) as created:
Note: Telecommunications services as defined in s.
77.51 (21m), Stats., “means sending messages and information transmitted through the use of local, toll and wide-area telephone service; channel services; telegraph services; teletypewriter; computer exchange services; cellular mobile telecommunications service; specialized mobile radio; stationary two-way radio; paging service; or any other form of mobile and portable one-way or two-way communications; or any other transmission of messages or information by electronic or similar means between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite or similar facilities. 'Telecommunications services' does not include sending collect telecommunications that are received outside of the state."
SECTION 5. Tax 11.66 (2) (intro.) and (a) are renumbered Tax 11.66 (2) (a) (intro.) and 1. and as renumbered Tax 11.66 (2) (a) 1. is amended to read:
Tax 11.66 (2) (a) 1. The service originates or terminates in Wisconsin.
Note to Revisor: Add the following examples at the end of Tax 11.66 (2) (a) 1. as renumbered:
Examples: 1) Mary Jones places a telephone call from her home in Wisconsin to Bill Jones in Illinois. The call originated in Wisconsin since it was placed from a telephone in Wisconsin.
2) Mary Jones receives a collect call at her home in Wisconsin. The call was placed by Bill Jones from a telephone in Illinois. The call terminated in Wisconsin since it was received in Wisconsin.
3) Company A contracts with Telecommunications Provider B for use of a telecommunications channel to send data from Company A's bank, located in Milwaukee, Wisconsin, to Company A's automated teller machines or “ATMs," located in Waukesha, Wisconsin, and to send data from its ATMs in Waukesha to its bank in Milwaukee. The charge by Telecommunications Provider B to Company A is based on a certain amount of dedicated channel capacity available to Company A on the telecommunications channel, regardless of the volume of data transmitted or number of transmissions made by Company A. Telecommunications Provider B refers to this service as “private line service." This service originates and terminates in Wisconsin.
4) Assume the same facts as example 3, except the telecommunications channel is used by Company A to send data from its bank in Wisconsin to its ATMs located in Illinois. The telecommunications channel is also used by Company A to send data from its ATMs located in Illinois to its Wisconsin bank. This service originates and terminates in Wisconsin.
SECTION 6. Tax 11.66 (2) (intro.) and (a) (title) are created to read:
Tax 11.66 (2) (intro.) GENERAL. This subsection describes the conditions under which telecommunications services and telecommunications message services are taxable. The conditions are as follows:
(a) (title) Telecommunications services.
SECTION 7. Tax 11.66 (2) (b) (intro.) and 1. to 5. are renumbered Tax 11.66 (2) (a) 2. (intro.) and a. to e.
SECTION 8. Tax 11.66 (2) (b) is created to read:
Tax 11.66 (2) (b) Telecommunications message services. Telecommunications message services that consist of recording telecommunications messages and transmitting them to the purchaser of the service or at that purchaser's direction are taxable, except that those services are not taxable if either of the following apply:
1. They are merely an incidental element of another service that is sold to the purchaser and is not taxable.
2. The situs of the service is outside this state. The situs of a telecommunications message service is the location where the customer, or someone at the direction of the customer, receives the message.
SECTION 9. Tax 11.66 (3) (title) and (intro.) are amended to read:
Tax 11.66 (3) (title) TAXABLE TELECOMMUNICATIONS SERVICES.
(intro.) Telecommunications services which
Gross receipts that are subject to Wisconsin sales or use tax include gross receipts from the sale of the following services:
SECTION 10. Tax 11.66 (3) (a) is renumbered Tax 11.66 (3) (a) 1. and amended to read:
Tax 11.66 (3) (a) 1. Local and toll service and Wide-Area Telecommunications Service , or WATS, including intrastate private line service. or “WATS."
Note to Revisor: Replace the example at the end of sub. (3) (a) 1. as renumbered with the following:
Example: Company JKL, headquartered in Milwaukee, has branch offices in Madison, Green Bay, Chicago and Minneapolis. Company JKL contracts with a telecommunications company for use of telecommunications channels to send messages between and among its Milwaukee office and the branch offices. Company JKL has exclusive use of the channels while using them. The telecommunications company sells use of the telecommunications channels to other parties while Company JKL is not using them. The charges by the telecommunications company to Company JKL are based on a certain amount of dedicated channel capacity available to Company JKL on the telecommunications channels. Increasing capacity requires a higher charge. The telecommunications service is charged to a service address in Wisconsin. The telecommunications company refers to this service as “private line service." The charges by the telecommunications company to Company JKL for this service are subject to Wisconsin sales or use tax. A credit may be allowed, against the Wisconsin sales or use tax, for tax paid to Illinois or Minnesota. See sub. (6).
SECTION 11. Tax 11.66 (3) (a) (intro.) is created to read: Tax 11.66 (3) (a) (intro.) Telecommunications services, including:
SECTION 12. Tax 11.66 (3) (b) and (c) are renumbered Tax 11.66 (3) (a) 2. and 3.
SECTION 13. Tax 11.66 (3) (d) is repealed.
SECTION 14. Tax 11.66 (3) (e) to (L) and (m) are renumbered Tax 11.66 (3) (a) 4. to 11. and 15.
Note to Revisor: Add the following note at the end of Tax 11.66 (3) (a) 15. as renumbered:
Note: Refer to sub. (5) regarding the sale of rights to purchase telecommunications services.
SECTION 15. Tax 11.66 (3) (a) 12., 13. and 14. and (b) are created to read:
Tax 11.66 (3) (a) 12. Call forwarding services.
13. Caller ID services.
14. Internet access services.
(b) Telecommunications message services, including:
1. Nonmechanical telephone answering services.
Examples: 1) A real estate business, whose employees spend considerable periods of time away from its office, contracts with Company A to answer incoming telephone calls during periods when employees are not available to answer the telephone. Employees of Company A receive the calls to the real estate office by telephone, take messages from incoming callers and transmit the messages to the real estate company or particular employees in that company. The service provided by Company A is not an incidental element of another service sold by the company that is not a taxable service. Company A's charge for this service is subject to Wisconsin sales or use tax.
2) Company B employs an office management service that provides receptionist, typing, filing, scheduling, bookkeeping and similar services. Employees of the office management service also answer and route incoming telephone calls. When calls cannot be routed, the office management service takes and transmits messages to the appropriate person. This answering service is only a small part of the total services provided.
The telephone answering service provided as a part of the office management service is not subject to Wisconsin sales or use tax because it is incidental to the office management service provided and that office management service is not taxable.
2. Security monitoring services that consist of recording a telecommunications message and notifying the customer or local authorities of the message.
3. Electronic mail services.
4. Mechanical or electronic voice messaging and telephone answering services.
Example: Company A provides its customers access to an office message system computer through which a customer can deposit or retrieve telephone messages using a touch-tone telephone. The service may be used as a message center, a call forwarding service or an answering service. Messages are stored in the computer, and the customer may send or retrieve messages, reply to a message directly, reroute messages to others, broadcast messages to a wider group, save selected messages and cancel messages no longer needed. The service is available 24 hours a day, and the customer accesses the computer either through a toll-free telephone number or a local telephone number. The service provided by Company A is not an incidental element of another service sold by the company that is not a taxable service. Company A's charges for this service are subject to Wisconsin sales or use tax.
SECTION 16. Tax 11.66 (4) (intro.), (a) and (c) are amended to read:
Tax 11.66 (4) (intro.) NONTAXABLE SERVICES. Gross receipts from the sale of or charge for the following services are not taxable:
(a) Interstate or international telecommunications service if the service originates from another state or country or if the service originates in Wisconsin but is charged to a service address in another state or country.
(c) Access Transfers of access services, Measured Toll Service , or MTS, and or “MTS," and Wide-Area Telecommunications Service , or WATS, services resellers
or “WATS," services to resellers who purchase, repackage, and resell the services to customers. The reseller is liable for sales tax on its final retail sales of those services.
SECTION 17. Tax 11.66 (4) (d) is repealed and recreated to read:
Tax 11.66 (4) (d) Services that are obtained by means of a toll-free number, that originate outside Wisconsin and terminate in Wisconsin.
Note to Revisor: Remove the example that follows Tax 11.66 (4) (d) before its repeal.
SECTION 18. Tax 11.66 (4) (e) is repealed.
SECTION 19. Tax 11.66 (4) (f) and (5) are renumbered Tax 11.66 (4) (e) and (7) and as renumbered Tax 11.66 (4) (e) is amended to read:
Tax 11.66 (4) (e) Transfers of services, commonly called “access services," to an interexchange carrier which permit the origination or termination of telephone messages between a customer in this state and one or more points in another telephone exchange, and which are resold by the interexchange carrier. The interexchange carrier is liable for sales tax on its final retail sales of those services.
SECTION 20. Tax 11.66 (5) and (6) are created to read:
Tax 11.66 (5) PREPAID TELEPHONE CALLING CARDS AND AUTHORIZATION NUMBERS.
(a) The sale of rights to purchase telecommunications services, including purchasing reauthorization numbers, by paying in advance and by using an access number and authorization code, is subject to Wisconsin sales or use tax.
(b) The situs of the sale of the rights to purchase telecommunications services is as follows:
1. If the sale takes place at a retailer's place of business, the situs of the sale is that place of business.
2. If the sale does not take place at a retailer's place of business and an item that will implement the right to purchase telecommunications services, such as a calling card, is shipped, the situs of the sale is the customer's shipping address.
3. If the sale does not take place at a retailer's place of business and no item that will implement the right to purchase telecommunications services is shipped, the situs of the sale is the customer's billing address.
(6) CREDIT FOR TAX PAID TO ANOTHER STATE. Any person who is subject to the tax under s.
77.52 (2) (a) 5., Stats., on telecommunications services that terminate in Wisconsin and who has paid a similar tax on the same services to another state may reduce the amount of the tax remitted to Wisconsin by an amount equal to the similar tax properly paid to another state on those services or by the amount due Wisconsin on those services, whichever is less. That person shall refund proportionally to the persons to whom the tax under s.
77.52 (2) (a) 5., Stats., was passed on an amount equal to the amounts not remitted.
Note to Revisor: 1) Replace the first note at the end of Tax 11.66 with the following:
2) In the third note at the end of Tax 11.66: remove part (b); renumber parts (c) to (h) to be parts (b) to (g); remove the word “and" before part (g) as renumbered; and add the following to the end of the note:
;(h) Certain telecommunications message services became taxable December 1, 1997, pursuant to
1997 Wis. Act 27; (i) Telecommunications services originating outside Wisconsin, terminating in Wisconsin and charged to a service address in Wisconsin, except certain services obtained by means of a toll-free number, became taxable December 1, 1997, pursuant to
1997 Wis. Act 27; (j) Credit for sales tax properly paid to another state on interstate telecommunications services became effective October 14, 1997, pursuant to
1997 Wis. Act 27; (k) Sales of rights to purchase telecommunications services became taxable August 1, 1998, pursuant to
1997 Wis. Act 237; and (L) The repeal of the exemption for interstate "private line" service, as defined in Tax 11.66 (1) (a), September 1997 Register, and described in Tax 11.66 (4) (d), September 1997 Register, became effective
[Revisor insert effective date of rule order].
Initial Regulatory Flexibility Analysis
This proposed rule order does not have a significant economic impact on a substantial number of small businesses.
Fiscal Estimate
The proposed order updates the Department of Revenue's administrative code relating to telecommunications services and telecommunications message services. The changes incorporate recent law changes, clarify existing language to reflect the Department's current position, and alter style and format to conform to Legislative Council Clearinghouse standards. These rule changes do not have a fiscal effect.
Comments on the Rule
Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person shown below no later than August 26, 2002, and will be given the same consideration as testimony presented at the hearing.
Contact Person
Mark Wipperfurth
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
PO Box 8933
Madison WI 53708-8933
Telephone (608) 266-8253
