Rule-making notices
Notice of Hearings
Natural Resources
Fish & Game, etc. Chs.
NR 1—
NOTICE IS HEREBY GIVEN that pursuant to ss.
23.091,
23.09 (2) (intro.),
23.11 (1),
23.28 (3),
23.293,
27.01 (2) (j),
(10) (b) and
(f) and
227.11 (2) (a), Stats., interpreting ss.
23.091,
23.09 (2) (intro.),
23.11 (4),
23.17, 23,175,
23.28 (3),
23.293,
27.01 (2) (I) and (j) and (10) (f) and 28.04 (2), Stats., the Department of Natural Resources will hold public hearings on revisions to chs.
NR 1,
10,
45 and
51, Wis. Adm. Code, relating to use of Department properties. The proposed rules address issues that have arisen on Department properties since these rules were last revised in 2003. In addition revisions are included to clarify the purpose of the North Country Trail and Ice Age Trail areas and include an update to the list of state trails in ch.
NR 51. Other revisions include a number of fee increases and policy changes for camping and other uses on Department property.
Fees: Fee increases are being proposed for items such as picnic shelter rentals, camping at Devil's Lake, Kohler-Andrae, Mirror Lake, Peninsula, Big Bay, Willow River and Hartman Creek state parks and the Point Beach state forest, and for electrified group campsites.
Camping policies: Registrants without an advance registration must occupy the site with a camping unit the first night of the registration and every night thereafter. For reserved sites, the registrant must occupy the camping unit on the reserved site by 3:00 p.m. on the second day of the reservation. The maximum length of allowed camping stays will be reduced. Extending camping reservation end dates will be prohibited. Ice Age Trail areas are added to the list of property types or areas where camping may be permitted.
Turkey hunting in parks: Turkey hunting in state parks was previously permitted, but the regulations necessary for issuing the permits is being implemented.
Miscellaneous: A physically disabled person is defined for purposes of ch.
NR 45 to mean a person who has been determined by the Department of Transportation to have a permanent disability and has been issued a disabled registration plate or special identification card or who has been issued an approval under s.
29.193, Stats., for a permanent disability. A provision stating that no person may resist or obstruct a law enforcement officer when that officer is doing any act in an official capacity and with lawful authority allows minor obstructions to be charged as civil forfeitures. State natural areas are added to the list of areas and properties that do not allow airguns (paintball guns) due to the sensitive nature of these properties. All waters in Governor Tommy Thompson State Park do not allow motorboats except battery-powered electric motors at a slow-no-wake speed.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to s.
227.114, Stats., it is not anticipated that the proposed rule will have an economic impact on small businesses. The Department's Small Business Regulatory Coordinator may be contacted at:
SmallBusinessReg.Coordinator@dnr.state.wi.us or by calling (608) 266-1959.
NOTICE IS HEREBY FURTHER GIVEN that the Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch.
NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
NOTICE IS HEREBY FURTHER GIVEN that the hearings will be held on:
Tuesday, September 28, 2004 at 1:30 p.m.
Room 409, GEF #3
125 South Webster Street
Madison
Thursday, September 30, 2004 at 1:00 p.m.
Wausau Room Marathon County Public Library
300 N. First St.
Wausau
Thursday, September 30, 2004 at 5:00 p.m.
Room 604, Green Bay City Hall
100 N. Jefferson Street
Green Bay
NOTICE IS HEREBY FURTHER GIVEN that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Kate Fitzgerald at (608) 267-2764 with specific information on your request at least 10 days before the date of the scheduled hearing.
Fiscal Estimate
This rule package amends Chapter NR45 (Natural Resources). NR45 contains the administrative regulations for the use of facilities and lands owned, acquired by easement, or leased by the Department. This chapter is reviewed and revisions proposed by Department staff on a regular basis. There are also changes as part of the rule package to NR 1, and NR 51 that have no fiscal impact.
Fee increases are being proposed for picnic shelter rentals within the Wisconsin State Park System and for camping at selected Wisconsin State Park campgrounds, based on local market conditions. The Wisconsin State Park System picnic shelters continue to generate strong demand and public use. A review of county and mid-west state park system 's current rate structure demonstrates state park shelter fees are comparatively low. This proposal includes a modest average $10 fee increase. In addition, a $5 fee is being added to the price of each shelter reservation to cover the administrative costs of processing, recording, notifying and managing the shelter reservations. The additional revenues generated by these fees will be used to support general park services consumed by visitors such as sewer, waste disposal, electricity and staff patrol.
This package also includes a request to increase camping fees at a select group of state parks. Wisconsin State Statute s.
27.01 (10) (h) states, "
… the Department shall determine which state campgrounds are located in areas where local market conditions justify the establishment of higher camping fees to be charged by the Department." After a review of local market conditions fee increases for Devil's Lake, Kohler-Andrae, Mirror Lake, Peninsula, Big Bay, Willow River, Hartman Creek State Parks and Point Beach Southern Forest are justified during the prime camping season. It has been twelve years since the last base camping fee increase. Local market conditions and high customer demand, indicate that moderate camping fee increases at these eight properties are supportable.
The increased fees are needed to address the continued rising costs of providing quality agency services. Without these increases the agency would be forced to reallocate resources away from core functions and will be forced to reduce recreational and customer services currently demanded by visitors.
1. Shelter Rental Fees NR 45.12 (4) (g) -This proposal increases shelter reservation fees by
Open Picnic Shelter Rental - Increase the base shelter rate, previously $25, by $10 and incorporate $5 reservation processing fee. Assumes 15 shelters x rental season includes 44 days x 45% occupancy x base rental increase = $4,455.
Open Picnic Shelter with Electricity -- Increase the base shelter rate, previously $25, by $10 and incorporate $5 reservation processing fee. Assumes 38 shelters x rental season (includes 44 days) x 45% occupancy x base rental increase = $11,300.
Enclosed Picnic Shelter -- Increase the base shelter rate, previously $25, by $15 and incorporate $5 reservation processing fee. Assumes 2 shelters x rental season (includes 44 days) x 45% occupancy x base rental increase = $800.
Enclosed Picnic Shelter w/o electricity (less than 50 people) -- Increase the base shelter rate, previously $25, by $20 and incorporate $5 reservation processing fee. Assumes 3 shelters x rental season (includes 44 days) x 45% occupancy x base rental increase = $1,485.
Enclosed Picnic Shelter w/o electricity (more than 50 people) -- Increase the base shelter rate, previously $25, by $40 and incorporate $5 reservation processing fee. Assumes 14 shelters x rental season (includes 44 days) x 45% occupancy x base rental increase = $12,500.
Total Increased Shelter Revenue = $30540
Park Account Revenue (80%) $24,432
Forestry Account Revenue (20%) $ 6,108
2. NR 45.12 (2) (b) to increase camping fees at Devil's Lake, Kohler-Andrae, Mirror Lake, Peninsula, Big Bay, Willow River, Hartman Creek State Parks and Point Beach Southern Forest by $3 per night Memorial Day through Labor Day and on Friday and Saturday nights through October.
Assumptions: A revenue increase of $411,683 is projected for this change. The increase revenue is based upon a calculation that includes the number of camping days per season (Memorial Day through Labor Day =101 plus 8 weekend nights in September and early October for a total of 109 camping nights). The number of camper nights is then multiplied by the total number of impacted campsites (1378 and 127 sites respectively) times the average seasonal occupancy per campground, multiplied by a $3 per night fee increase.
Park Account Revenue: $379,872
Forestry Account Revenue: $31,811
Total $411,683
The proposed rule may be reviewed and comments electronically submitted at the following Internet site:
http://adminrules.wisconsin.gov. Written comments on the proposed rule may be submitted via U.S. Mail to Ms. Kate Fitzgerald, Bureau of Parks and Recreation, P.O. Box 7921, Madison, WI 53707. Comments may be submitted until October 15, 2004. Written comments whether submitted electronically or by U.S. mail will have the same weight and effect as oral statements presented at the public hearings. A personal copy of the proposed rule and fiscal estimate may be obtained from Ms. Fitzgerald.
Notice of Hearings
Natural Resources
Fish & Game, etc. Chs.
NR 1—
NOTICE IS HEREBY GIVEN that pursuant to ss.
29.014 and
227.11, Stats., interpreting s.
29.014, Stats., the Department of Natural Resources will hold public hearings on revisions to ch.
NR 10, Wis. Adm. Code, relating to deer management unit population goals and boundaries. The proposed rule would modify the boundaries of Deer Management Units 35, 38, 39, 75A and 76. In addition, the rule would modify the overwinter deer populations goals for Units 3, 4, 15, 28, 29A, 61 and 74A.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to s.
227.114, Stats., it is not anticipated that the proposed rule will have an economic impact on small businesses. The Department's Small Business Regulatory Coordinator may be contacted at:
SmallBusinessReg.Coordinator@dnr.state.wi.us or by calling (608) 266-1959.
NOTICE IS HEREBY FURTHER GIVEN that the Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch.
NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
NOTICE IS HEREBY FURTHER GIVEN that the Department will hold an open house for one-half hour prior to each hearing. Department staff will be available to answer questions regarding the proposed rule.
NOTICE IS HEREBY FURTHER GIVEN that the hearings will be held on:
Wednesday, September 22, 2004
Bill Lazansky Community Center
13412 Hwy. 32/64, Mountain at 6:30 p.m.
Iron River Community Center
East U.S. Highway 2, Iron River at 7:30 p.m.
Thursday, September 23, 2004
2nd Floor Conference Room
Law Enforcement Center
222 N. Beaumont
Prairie du Chien at 6:30 p.m.
Lower Level Meeting Room
Terminal Building
Rhinelander/Oneida County Airport
Airport Road off U.S. Highway 8 West
Rhinelander at 630 p.m.
Town of Brooklyn Administrative Building
400 Main Street
Brooklyn at 6:30 p.m.
Monday, September 27, 2004
Chippewa Valley Technical College
620 W. Clairemont Ave.
Eau Claire at 7:00 p.m.
Tuesday, September 28, 2004
UW Extension Ag Research Station
W6646 Hwy. 70 East
Spooner at 5:30 p.m.
Mercer Community Center
2648 W. Margaret Street
Mercer at 6:30 p.m.
Lower Level West Meeting Room
Rusk Co. Community Library
418 W. Corbett Avenue
Ladysmith at 6:30 p.m.
NOTICE IS HEREBY FURTHER GIVEN that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Kurt Thiede at (608) 267-2452 with specific information on your request at least 10 days before the date of the scheduled hearing.
Fiscal Estimate
The only fiscal impact, outside of minor costs associated with updating regulations and maps, is the potential agricultural damage and associated claims and abatement costs. However, these impacts would be negligible. All of the proposed increases are 5 or less deer per square mile of deer range. Most are in northern units where there is little agriculture and the few in the southwest are going from 15 to 20 deer per sq. mi., which is similar to the populations have been in recent years.
The proposed rule may be reviewed and comments electronically submitted at the following Internet site:
http://adminrules.wisconsin.gov. Written comments on the proposed rule may be submitted via U.S. Mail to Mr. Brad Koele, Bureau of Wildlife Management, P.O. Box 7921, Madison, WI 53707. Comments may be submitted until September 30, 2004. Written comments whether submitted electronically or by U.S. mail will have the same weight and effect as oral statements presented at the public hearings. A personal copy of the proposed rule and fiscal estimate may be obtained from Mr. Kurt Thiede, Bureau of Wildlife Management, P.O. Box 7921, Madison, WI 53707.
Notice of Hearing
Public Instruction
NOTICE IS HEREBY GIVEN That pursuant to ss.
119.23 (7) (am) 2. and
(d) 2.,
(10) (a) 3., and
(11), Stats., and
227.11 (2) (a), Stats., and interpreting s.
119.23 (7) and
(10), Stats., the Department of Public Instruction will hold a public hearing as follows to consider the amending of ch.
PI 35, relating to financial reporting requirements under the Milwaukee Parental Choice Program. The hearing will be held as follows:
Date, Time and Location
September 13, 2004
3:30 p.m. - 5:30 p.m.
Milwaukee
Milwaukee Public Schools District Office
5225 W. Vliet Street
Auditorium
The hearing site is fully accessible to people with disabilities. If you require reasonable accommodation to access any meeting, please contact Tricia Collins, Consultant, Milwaukee Parental Choice Program,
tricia.collins@dpi.state.wi.us, (608) 266-2853, or leave a message with the Teletypewriter (TTY), (608) 267-2427 at least 10 days prior to the hearing date. Reasonable accommodation includes materials prepared in an alternative format, as provided under the Americans with Disabilities Act.
Copies of Rule and Contact Person
Lori Slauson, Administrative Rules and Federal Grants Coordinator
Department of Public Instruction
125 South Webster Street
P.O. Box 7841
Madison, WI 53707
Written comments on the proposed rules received by Ms. Slauson at the above mailing or email address no later than September 17, 2004, will be given the same consideration as testimony presented at the hearing.
Analysis by the Department of Public Instruction
Explanation of agency authority: Section
119.23 (7) (am) 2. and
(d) 2., Stats., requires private schools participating in the Milwaukee Parental Choice Program (MPCP) to provide evidence of sound fiscal practices and financial viability as prescribed by the department by rule.
Section
119.23 (10) (a) 3., Stats., allows the department to specify by rule the date by which a participating private school must refund the department of any overpayment made to it.
Section
119.23 (11), Stats., gives the department authority to promulgate rules to implement and administer the entire program.
Court Decisions Directly Relevant: There are pending civil and criminal cases in Milwaukee county related to financial issues addressed in this rule.
Related statute or rule: None.
Plain language analysis:
2003 Wisconsin Act 155 made a number of changes to the Milwaukee Parental Choice Program (MPCP), under which certain low-income pupils who reside in the city of Milwaukee may attend participating private schools in the city at state expense. The Act requires participating private schools to:
Provide the department with evidence of financial viability.
Provide the department with evidence of sound fiscal practices.
Provide proof that the administrator has participated in a fiscal management training program approved by the department.
The Act also gives the state superintendent the authority to:
Withhold aid if a participating private school is not in compliance with program requirements.
Under certain circumstances, issue an order prohibiting a private school from participating in the program in the current year.
Immediately terminate a private school's participation in the program if conditions at the school present an imminent threat to the health and safety of pupils.
Whenever the state superintendent issues an order terminating a school's participation, he or she must notify the parent or guardian of each pupil.
The proposed rules set forth the process by which the department will implement the provisions under the Act, which is effective starting in the 2004-05 school year. The proposed rules also specify the responsibilities of auditors and the department in determining if the school is meeting the requirements under the Act.
Summary of, and comparison with, existing or proposed federal regulations: None.
Comparison with rules in adjacent states: None.
Summary of factual data and analytical methodologies: The rule was developed based on a review of fiscal practices contained in policy manuals for non-governmental organizations affiliated with MPCP private schools, recommended practices by national organizations, requirements that other state agencies have for private and non-profit organizations, and internal control practices contained in professional accounting and auditing literature. Financial practices and audit requirements included in the rule are similar to those required for school districts, charter schools, other state agency requirements for non-profit and for-profit organizations, and are consistent with generally accepted national standards. An overview of rule items was provided to interested parties, but discussion was limited due to the short implementation timeframe imposed under
2003 Wisconsin Act 155.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report: N/A
Anticipated costs incurred by private sector: The proposed rules establish how private schools participating in the MPCP program will meet the new financial reporting requirements established under
2003 Wisconsin Act 155.
In January 2004, there were 106 private schools participating in the MPCP, with a total enrollment of 12,231 students in the program. It is anticipated that the private school financial audit requirements will have a slight fiscal effect since many of the participating schools currently have limited audit procedures in place. Auditing costs for small public school districts range from $2,000 - $5,000 annually. It is assumed that auditing costs to participating private schools will fall within the higher end of the $2,000 - $5,000 range and are not considered significant. The actual costs will vary depending on the number of financial transactions and expertise of the private school's accounting staff. The status of the financial records maintained by the private school staff will directly affect the time involved in auditing those records.
Effect on small business: See “Anticipated costs incurred by private sector."
Agency contact person: (including email and telephone)
Dennis Hanson, School Finance Auditor
(608) 267-1291
Tricia Collins, Consultant
Milwaukee Parental Choice Program
(608) 266-2853
Description of any forms (attach copies if available): Milwaukee Parental Choice Program Budget and Anticipated Cash Flow Form.
Fiscal Estimate
The proposed rules establish how private schools participating in the MPCP program will meet the new financial reporting requirements established under
2003 Wisconsin Act 155.
In January 2004, there were 106 private schools participating in the MPCP, with a total enrollment of 12,231 students in the program. It is anticipated that the private school financial audit requirements will have a fiscal effect since many of the participating schools currently have limited audit procedures in place. Auditing costs for small public school districts range from $2,000 - $5,000 annually. It is assumed that auditing costs to participating private schools will fall within the higher end of the $2,000 - $5,000 range and are not considered significant. The actual costs will vary depending on the number of financial transactions and expertise of the private school's accounting staff. The status of the financial records maintained by the private school staff will directly affect the time involved in auditing those records.
The Act and the rules have additional administration requirements for the program that will have a fiscal effect on the department. It is assumed such costs could be absorbed within the agency's operating budget.
The rules will not have a fiscal effect on the Milwaukee Public Schools.
Initial Regulatory Flexibility Analysis
The proposed rules are not anticipated to have a significant fiscal effect on small businesses as defined under s.
227.114 (1) (a), Stats.
Notice of Hearing
Revenue
Notice is hereby given that, pursuant to s.
71.80 (1) (c), Stats., and interpreting ss.
71.04 (4) (e),
(8) (c), and
(11) and
71.25 (6) (e),
(10) (c), and
(12), Stats., the Department of Revenue will hold a public hearing at the time and place indicated below, to consider the repeal and recreation and creation of rules relating to the apportionment of net business incomes of interstate financial organizations.
Hearing Information
The hearing will be held at 9:00 A.M. on Friday, October 1, 2004, in Conference Room 6S-02 (6th floor) of the State Revenue Building, located at 2135 Rimrock Road, Madison, Wisconsin.
Handicap access is available at the hearing location.
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 October 8, 2004, and will be given the same consideration as testimony presented at the hearing.
Contact Person
Dale Kleven
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
Telephone (608) 266-8253
Analysis by the Department of Revenue
Explanation of agency authority: Under s.
71.80 (1) (c), Stats., the department may make such regulations as it shall deem necessary in order to carry out chapter 71 of the Wisconsin Statutes, relating to income and franchise taxes. Additionally, section
33,
2003 Wisconsin Act 37, requires the department to promulgate a rule requiring financial organizations to use an apportionment formula consisting solely of a sales factor.
Plain language analysis: SECTION 1. Tax 2.49 is repealed and recreated to prescribe the method of apportioning the net business income of interstate financial organizations, other than brokerage houses, investment companies, and insurance companies, as required by ss.
71.04 (4) (e) and
(8) (c) and
71.25 (6) (e) and
(10) (c), Stats. This section of the rule order does all of the following:
a. Defines "financial institution" and other terms used in the rule.
b. Extends the application of Tax 2.49 to mortgage bankers, as authorized by ss.
71.04 (11) and
71.25 (12), Stats. Sections
71.04 (8) (a) and
71.25 (10) (a), Stats., exclude mortgage bankers from the definition of “financial organization."
c. Phases in the use of an apportionment formula consisting solely of a receipts factor:
•For taxable years beginning after December 31, 2004, and before January 1, 2006, net business income is apportioned using an apportionment fraction composed of a receipts factor representing 50% of the fraction and a payroll factor representing 50% of the fraction.
• For taxable years beginning after December 31, 2005, and before January 1, 2007, net business income is apportioned using an apportionment fraction composed of a receipts factor representing 60% of the fraction and a payroll factor representing 40% of the fraction.
•For taxable years beginning after December 31, 2006, and before January 1, 2008, net business income is apportioned using an apportionment fraction composed of a receipts factor representing 80% of the fraction and a payroll factor representing 20% of the fraction.
•For taxable years beginning after December 31, 2007, net business income is apportioned using an apportionment fraction consisting of the receipts factor.
d. Expands the types of income included in the receipts factor. In the existing rule, "gross receipts" includes all business income associated with the lending of money in the normal course of business, such as interest, discounts, finance charges or fees, and service charges or fees. In the proposed rule, receipts also include the following:
• Net gain from the sale of loans and credit card receivables.
• Gross receipts from credit card receivables, credit card issuer's reimbursement fees, and merchant discount.
•Loan servicing fees.
• Gross receipts from travelers checks, cashiers checks, certified checks, and money orders.
•Gross receipts from automated teller machines, debit card transactions, and electronic funds transfer.
• Gross receipts from maintaining accounts, safety deposit boxes, investment banking services, cash management services, international trade services, data processing and microfilming services, research services, trust services, investment banking services, and security brokerage services.
•Gross receipts from leasing real or tangible personal property.
•Gross royalties for the use of intangible property.
•Gross receipts from other services.
•Gross receipts from sales of tangible personal property.
•Gross receipts passed through from partnerships.
e. Changes the way that receipts are attributed to Wisconsin. The existing rule assigns gross receipts to Wisconsin if the transaction producing the income was principally negotiated in this state. The proposed rule specifies which receipts are assigned to Wisconsin, based on the type of receipt. For example, interest and other fees from loans secured by real property and net gains from the sale of loans secured by real property are assigned to Wisconsin if the real property is located in Wisconsin. Interest and other fees charged to credit card holders and net gains from the sale of credit card receivables are assigned to Wisconsin if the billing address of the credit card holder is in Wisconsin.
SECTION 2. Tax 2.495 is created to prescribe the method of apportioning the net business income of interstate brokerage houses, investment companies, and underwriters, as required by ss.
71.04 (4) (e) and
(8) and
71.25 (6) (e) and
(10), Stats. This section of the rule order does all of the following:
a. Defines "brokerage house" and other terms used in the rule.
b. Prescribes the method of apportioning the net business income of investment advisers, as authorized by ss.
71.04 (11) and
71.25 (12), Stats. Sections
71.04 (8) (a) and
71.25 (10) (a), Stats., exclude investment advisors from the definition of “financial organization."
c. Phases in the use of an apportionment formula consisting solely of a receipts factor:
•For taxable years beginning after December 31, 2004, and before January 1, 2006, net business income is apportioned using an apportionment fraction composed of a receipts factor representing 50% of the fraction, a payroll factor representing 25% of the fraction, and a property factor representing 25% of the fraction.
•For taxable years beginning after December 31, 2005, and before January 1, 2007, net business income is apportioned using an apportionment fraction composed of a receipts factor representing 60% of the fraction, a payroll factor representing 20% of the fraction, and a property factor representing 20% of the fraction.
•For taxable years beginning after December 31, 2006, and before January 1, 2008, net business income is apportioned using an apportionment fraction composed of a receipts factor representing 80% of the fraction, a payroll factor representing 10% of the fraction, and a property factor representing 10% of the fraction.
•For taxable years beginning after December 31, 2007, net business income is apportioned using an apportionment fraction consisting of the receipts factor.
d. Prescribes the types of income included in the receipts factor.
e. Specifies which receipts are assigned to Wisconsin, based on the type of receipt.
Summary of, and comparison with, existing or proposed federal regulation: There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Comparison with rules in adjacent states: Iowa and Minnesota generally use a market-based approach for assigning gross receipts from the performance of services; that is, the gross receipts are assigned to the location of the customer. Illinois and Michigan generally assign gross receipts from the performance of services to the location where the services are performed. This rule proposes a market-based approach for assigning gross receipts from the performance of services.
Summary of factual data and analytical methodologies: The department started with the Recommended Formula for Apportionment and Allocation of Net Income of Financial Institutions, which was adopted by the Multistate Tax Commission (MTC) on November 17, 1994. The MTC is an organization of state governments that works with taxpayers to develop and recommend uniform laws and regulations to promote equitable state tax treatment of multistate businesses. The MTC spent more than seven years working with state tax departments and multistate and multinational financial institutions from across the country in developing this apportionment formula. The laws, regulations, rules, and tax returns of the other states that impose a franchise or income tax on financial institutions and brokerage firms were then reviewed. Since state apportionment formulas are not uniform, neighboring states' apportionment formulas were the primary focus of this review. Revisions to these formulas were then made, based on suggestions from Wisconsin's banking associations.
Analysis and supporting documents used to determine effect on small business: The department has prepared a fiscal estimate for this proposed rule order. It was determined that there is not a significant fiscal effect on small business.
Anticipated costs incurred by private sector: This proposed rule order does not have a significant fiscal effect on the private sector.
Effect on small business: This proposed rule order does not have a significant fiscal effect on small business.
Fiscal Estimate
Under the proposed rules, financial institutions and broker-dealers and underwriters would apportion income for taxable years beginning in 2006 based on a formula that weights the sales factor at 60% and the payroll factor at 40%. For taxable years beginnning in 2007, the sales factor would be weighted at 80% and the payroll factor at 20%. For taxable years beginning in 2008, the sales factor would be 100% of the apportionment formula. These changes have no fiscal effect beyond those included in the estimate for
2003 Act 37.
In addition, the rules more specifically define the receipts that would be included in the receipts factor for financial institutions and broker-dealers and underwriters to reflect changes in the financial services industry under current law. An estimate of the impact of these changes is not known, but is believed to be minimal.
Agency contact person:
Please contact Dale Kleven at (608) 266-8253 or
dkleven@dor.state.wi.us, if you have any questions regarding this proposed rule order.
Place where comments are to be submitted and deadline for submission: Written comments may be submitted to the contact person shown below no later than October 8, 2004, and will be given the same consideration as testimony presented at the hearing that will take place on October 1, 2004.
Dale Kleven
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
Notice of Hearing
Transportation
NOTICE IS HEREBY GIVEN that pursuant to
2003 Wis. Act 220, Stats., and interpreting ss.
20.395 (5) (hq), s.
110.20 (5) and
(6) (a), and s.
227.114 (1), Stats., the Department of Transportation will hold a public hearing in
Room 144-B of the Hill Farms State Transportation Building, 4802 Sheboygan Avenue, Madison, Wisconsin on the
14th day of September, 2004, at
1:30 PM, to consider the creation of ch.
Trans 135, Wisconsin Administrative Code, both as an emergency rule and permanent rule relating to the creation of a school bus oxidation catalyst grant program in certain counties.
An interpreter for the hearing impaired will be available on request for this hearing. Please make reservations for a hearing interpreter at least 10 days prior to the hearing.
Parking for persons with disabilities and an accessible entrance are available on the north and south sides of the Hill Farms State Transportation Building.
Copies of the emergency rule or permanent rule can be obtained upon request from Carson Frazier (see end of this notice)
Analysis Prepared by the Wisconsin Department of Transportation
s.
110.20 (5), which identifies the counties in which the I/M program and grant program apply; and s.
227.114 (1), Stats. which defines a “small business" as it applies to this hearing notice.
Plain Language Analysis:
2003 Wis. Act 220 requires the Wisconsin Department of Transportation, in consultation with the Wisconsin Department of Natural Resources, to develop and administer a program to provide grants for the purchase and installation of oxidation catalysts on school buses customarily kept in the counties identified in s.
110.20 (5), Stats.: Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Washington
, and Waukesha. Act 220 amends s.
20.395 (5) (hq), Stats., to provide funds for the grant program under WisDOT's vehicle inspection/maintenance (I/M) program appropriation.
Summary of, and Preliminary Comparison with, Existing or Proposed Federal Regulation: In the past few years, the U.S. Environmental Protection Agency (USEPA) has issued rules establishing new emission standards for heavy-duty diesel vehicles (including school buses) and engines (including school bus engines) that are effective in 2004 and in 2007. These increasingly stringent emission standards apply to newly manufactured vehicles and engines. According to USEPA, these standards will reduce nitrogen oxide (NOx) and hydrocarbon (HC) emissions from trucks and buses by 95 percent beyond current levels and particulate matter (PM) emissions by 90 percent beyond current levels.
In order to meet these more stringent standards for diesel engines, USEPA's rules also mandate that the sulfur content of diesel fuel be capped at 15 parts per million – a 97 percent reduction over current levels – by 2007.
Oxidation catalysts can reduce PM emissions by 20 percent, HC emissions by 50 percent, and carbon monoxide (CO) by about 40 percent. Consequently, retrofitting school buses manufactured before 2004 with oxidation catalysts will reduce their emissions, but they will still emit substantially more than model year 2004 and newer school buses will.
Because new diesel vehicles will comprise a minority of the national vehicle fleet for several years, USEPA encourages emission control retrofits for existing vehicles. Nonetheless, while the impact of the new federal standards will increase over time, the grant program's impact on air quality in southeast Wisconsin will diminish over time, because school buses in affected Wisconsin counties typically are removed from service by the time they are 10 years old.
Comparison with Rules in Adjacent States:
Michigan: Michigan has no rules addressing school bus retrofits or school bus emissions. However, the Michigan Department of Environmental Quality has helped secure federal funds through USEPA's 2004 Clean School Bus USA Demonstration Grants Program to purchase diesel oxidation catalysts for 110 Ann Arbor Public School public school buses, to operate a fleet of 18 school buses on biodiesel B20 (diesel fuel blended with 20 percent biodiesel), and to purchase diesel oxidation catalysts and crankcase filtration systems for 40 to 50 Okemos Public School buses. Collectively, these grants amount to approximately $165,000.
Minnesota: Minnesota has no rules addressing school bus retrofits. However, in May 2002, Minnesota adopted legislation intended to protect the health and safety of children from harmful diesel school bus emissions. The law requires schools to reduce unnecessary idling of school buses in front of schools, and reroute bus parking zones away from air-intake vents (or if necessary, relocate the air-intake vents). In conjunction with the law, the Minnesota Office of Environmental Assistance has coordinated with environmental and health-based organizations to provide resources to schools to help with implementing the law.
Additionally, the South Washington County School District near St. Paul has retrofitted approximately 65 school buses with diesel oxidation catalysts with $62,225 in supplemental environmental project funds provided by 3M Corporation.
Illinois: Illinois has no rules addressing school bus retrofits. However, the state operates a clean school bus grant program administered by the Illinois EPA (IEPA). Under the grant program, IEPA accepts grant applications for purchasing and installing oxidation catalysts and for purchasing other means of reducing school bus emissions, including anti-idling equipment and biodiesel fuel.
Funding for the program comes primarily from two sources: USEPA's Clean School Bus USA Demonstration Grants Program and proceeds of an IEPA enforcement case against Archer Daniels Midland. Funding obtained through the latter is a one-time source of $2.3 million, but may be used only in twenty-four central and western Illinois counties.
Presently, IEPA has awarded grants to two school districts and is evaluating applications from several others.
Iowa: Iowa has no rules addressing school bus retrofits. However, the Iowa Department of Natural Resources (IDNR) has established the Bus Emissions Education Program (BEEP), a voluntary bus emissions testing program. The program is intended to detect emissions and combustion inefficiencies, and thereby help schools save money by enabling them to properly tune their buses. Iowa organizations and businesses provide program funding.
In addition to emissions testing, the IDNR will be partnering with various school districts to install diesel oxidation catalysts on about 125 buses over the next few years, and subsequently fueling them with biodiesel.
Summary of Factual Data and Analytical Methodologies Used and How the Related Findings Support the Regulatory Approach Chosen: In addition to creating the school bus oxidation catalyst retrofit grant program, Act 220 exempts two additional model years from testing in Wisconsin's vehicle emission inspection and maintenance (I/M) program. The underlying legislation, 2003 Senate Bill 436, relied on an analysis provided by the Wisconsin Department of Natural Resources, Bureau of Air Management (DNR).
DNR's analysis indicated that the lost emission reductions associated with the model year exemption could be substantively offset by, among other measures, retrofitting 300 school buses in the program area with oxidation catalysts. DNR's analysis, in turn, relied on bus emission and oxidation catalyst performance information provided by USEPA and oxidation catalyst vendors.
DNR's analysis is considered adequate for this hearing notice given the grant program's limited scope and duration.
Effect on Small Business and, If Applicable, Any Analysis and Supporting Documentation Used to Determine Effect on Small Businesses: None of the equipment vendors known to, or expected to, submit bids for the grant program are small businesses per s.
227.114 (1), Stats. A minority of the school bus companies known to, or expected to, participate in the grant program are small businesses.
School buses retrofitted under this rule will experience somewhere between a negligible and modest appreciation in value. Additionally, the program may provide participants with favorable media coverage. On the other hand, participating school bus companies will be required to supply the labor for, or cover the cost of, installing the oxidation catalysts. For most buses, installation will require one to two hours of labor by a qualified mechanic.
On balance, the rule is expected to have no significant effect on business practices or net worth of participating small bus companies. This assessment is based on consultations with diesel oxidation catalyst vendors, affected school bus companies, and representatives of other state grant programs.
You may contact the Department's small business regulatory coordinator by phone at (608) 267-3703, or via e-mail at the following website:
Fiscal Effect and Anticipated Costs Incurred by Private Sector
See previous section. The grant program will result in a net benefit to the private sector, as oxidation catalyst vendors will sell additional units and bus companies will receive them free of charge. The grant program is expected to cover the purchase of 300 oxidation catalysts at approximately $1,000 each.
Place Where Comments are to be Submitted and Deadline for Submission: The public record on this proposed rule making will be held open until close of business September 24, 2004, to permit the submission of comments in lieu of public hearing testimony or comments supplementing testimony offered at the hearing. Any such comments should be submitted to Carson Frazier, Department of Transportation, Bureau of Vehicle Services, Room 253, P. O. Box 7911, Madison, WI 53707-7911. You may also contact Ms. Frazier by phone at (608) 266-7857.
To view the proposed rule and submit written comments via e-mail/internet, you may visit the following website:
