Trans 178 Subchapter I (title) Audits, Assessments and Appeals
SECTION 7. Trans 178.06 is created to read:
Trans 178.06 Audits and assessments. (1) Audit. The department may conduct such audits that it deems necessary to determine the adequacy of the fees paid under this chapter. All records described in this chapter shall be made available to the department upon proper request within 15 days of the receipt of notice.
(2) Auditor Expenses. If the records of an applicant, a licensee or a registrant are not made available to the department in Wisconsin, the department shall require the applicant, licensee or registrant to reimburse the department for actual and necessary expenses, including the following:
(a)
Wages pursuant to the appropriate state compensation plan or applicable labor agreement. (f)
Copying and data processing. (3) Assessments.
(a)
The department may, by field or office audit, determine the registration fees to be paid or refunded to any person. The determination may be made on the basis of facts contained in the reports or upon any other information in the department’s possession. The department may examine and inspect books, records, memoranda and property of any person in order to verify the registration fees of that person or another person. The department may subpoena any person to give testimony under oath before it and produce whatever books, records or memoranda are necessary in order to enable the department to verify the registration fees of that person or another person. The determination by the department shall be presumed to be correct. If that determination is challenged, the burden of proving its invalidity shall be on the person challenging it.(b)
If any person fails to make records available upon proper request, or if any person fails to maintain records from which the true fee liability may be determined, the department may assess a registration fee based upon the department’s estimation of the registration fee liability. The assessment made by the department pursuant to this procedure shall be presumed to be correct, and in any case where the validity of the assessment is drawn in question, the burden shall be on the person to establish by a fair preponderance of evidence that the assessment is erroneous or excessive.(c)
In the event that a person fails, neglects or refuses to file registration when due, the department shall, on the basis of the best information available to it, determine the fee liability and shall, after adding the appropriate penalties, serve the assessment upon the person in the same manner as an audit assessment. (4) Notice of action. The department shall notify the licensee or other person audited in writing of the notice of action of any audit they perform. The department may issue a proposed notice of action to a licensee or other person audited before issuing the notice of action.
SECTION 8. Trans 178.07 is created to read:
Trans 178.07 Appeal procedures. (1) General. A person feeling aggrieved by the notice of an action may petition the department’s motor carrier section for a redetermination. If a person files a petition for redetermination, the additional fee or overpayment shall not become due and payable until 30 days after the matter becomes final.
(2) Format. The petition for redetermination shall be written, preferably typed, on only one side of plain white paper 8 ½ inches wide by 11 inches long, or emailed. This request shall set forth clearly and concisely the specific grievance to the action, including a statement of the relevant facts and propositions of law upon which the grievance is based. Each request shall be signed by the registrant or a duly authorized representative.
(3) Filing deadline. A petition for redetermination shall be filed within 30 days after the receipt of notice of an action. A petition for redetermination is not considered filed within the 30 day period unless it is actually received by the department’s motor carrier section, or unless it is mailed in a properly addressed envelope, with postage prepaid, the envelope is postmarked before midnight the 30th day and the petition is actually received by the department within 5 days of the prescribed 30th day date.
(4) Payment. Any person who files a petition for redetermination may pay any portion of the assessment admitted to be correct. The payment shall be considered admission that that portion of the assessment is correct. The admitted portion that is paid may not be recovered in an appeal in any other action or proceeding.
(5) Informal Conference. A petitioner may request in a petition for redetermination or at any time before the department has acted upon the petition, an informal conference at which the facts and issues involved in the assessment or determination may be discussed. The conference shall be held at a time and place determined by the department.
(6) Closing Stipulations. If by the informal conference or otherwise the parties reach an agreement as to the facts, issues and applicable law, the department and the petitioner may enter into a closing stipulation.
(7) Full Disclosure. No person against whom an assessment of fees has been made shall be allowed in any action either as a plaintiff or a defendant or in any other proceeding to question such assessment unless such person has complied with s. Trans 178.07 (1) to (3). SECTION 9. Trans 178.08 is created to read:
Trans 178.08 Revocation. If an assessed fee has not been paid when due and the person has not filed a written appeal within 30 days of the notification of action or audit finding, the fee becomes delinquent. A notice of delinquency and revocation shall be sent to the last known address of the licensee or registrant advising of the immediate revocation of UCR registration, fuel tax licensing, and vehicle registration privileges, or hire operating authority. A license may also be revoked if the licensee fails to comply with the provisions of this chapter or the provisions of the UCR. An appealable notice of revocation shall be mailed to the licensee’s or registrant’s mailing address of record. If the appeal is not filed within 30 days, the revocation shall be final and conclusive. A licensee or registrant’s licensing privileges shall remain revoked until the reason for the revocation has been removed. In addition, the department may revoke, suspend, or refuse any registration, certificate, or permit issued under the authority of the department upon revocation of a person’s UCR registration.
SECTION 10. Trans 178.09 is created to read:
Trans 178.09 Jeopardy assessment. Before any fee becomes due, if the department has reason to believe that any licensee or registrant, including former registrants or licensees, intends or is likely to evade or attempt to evade payment of the fee when due, or intends or is likely to convey, dispose of, or conceal his or her property or abscond from the state, or do any other act which would render the state insecure in the collecting the fee when due, the department may demand payment forthwith of all fees accrued by the licensee or registrant, which shall immediately become payable and collectable as if delinquent, and the property of the licensee or registrant shall be subject to attachment provided in s. 78.70, Stats. SECTION 11. Trans 178.10 is created to read:
Trans 178.10 Penalties. If any person has underpaid by failing to pay the correct fee, maintains inadequate records, has failed to make the records required under s. Trans 178.05 available upon proper request, or has failed to register for UCR by failing to complete the proper forms and paying the appropriate fees, the department shall assess the licensee an appealable penalty, as outlined in section 178.07, depending on the number of offense or upon the nature of the offense. The fee difference is the difference between the UCR bracket for which registered and the UCR bracket as determined by audit. The unpaid fee refers to the UCR fee amount due that has not been paid. Penalties shall be assessed according to the following schedule: Type of offense | 1st Offense | 2nd Offense | 3rd/Subsequent offense |
Underpaid | $200 + 2x Fee Difference | $400 + 2x Fee Difference | $600 + 2x Fee Difference |
Inadequate Records | $400 + 2x Fee Difference | $800 + 2x Fee Difference | $1200 + 2x Fee Difference |
Failure to Provide Records | $600 + 2x Fee Difference | $1200 + 2x Fee Difference | $1800 + 2x Fee Difference |
Failure to Register | $800 + 2x Unpaid Fee | $1600 + 2x Unpaid Fee | $2400 + 2x Unpaid Fee |
SECTION 12. Trans 178 Subchapter II (title) is created to read:
Trans 178 Subchapter II (title) Collections.
SECTION 13. Trans 178.11 is created to read:
Trans 178.11 Actions to collect. (1) Department Collection. The department shall make initial efforts to collect delinquent registration fees. The department may:
(a)
Assess the person responsible for paying the registration fees. The department may subpoena any records necessary to determine the person responsible for paying the registration fees. Any officer, employee, fiduciary or agent who is responsible for paying fees, penalties or other charges under this chapter incurred by another person but not paid is personally liable for those fees, penalties or other charges. The officer, employee, fiduciary or agent may appeal that determination under the procedures in 178.07.(b)
Suspend or refuse to issue any permit, license or registration to any person who is responsible for paying the fee, or penalty under this chapter. (2) Third Party Collection. The department may refer for collection any delinquent registration fees to the department of revenue. The department of revenue may collect any delinquent registration fees as it collects motor vehicle fuel and alternative fuel general aviation taxes under s. 78.70, Stats. SECTION 14. EFFECTIVE DATE. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats. (END OF RULE TEXT)
