Analysis and supporting documents used to determine effect on small business
As explained above, this proposed rule order is created to reflect changes in Wisconsin's sales and use tax laws. As the rule itself does not impose any significant financial or other compliance burden, the department has determined that it does not have a significant effect on small business.
Small Business Impact
This proposed rule order does not have a significant economic impact on a substantial number of small businesses.
Fiscal Estimate
The proposed rule updates Chapter Tax 11 of the Administrative Code, pertaining to the sales and use tax, to reflect certain sales tax changes adopted during the 2009 Legislative session. Specifically, the proposed rule updates Chapter Tax 11 to conform, or more clearly conform, this chapter of the administrative code to sales tax provisions contained in the following 2009 Acts:
  Act 2 — 2008-09 Budget Adjustment Legislation
  Act 28 — 2009-11 Budget Bill
  Act 204 — Food Sold by Child Welfare Facilities
  Act 330 — Streamlined Sales and Use Tax Agreement Changes
The proposed rule modifies Chapter Tax 11 to reflect law changes, improve clarity, and add examples to illustrate the tax treatment of certain items.
The proposed rule includes:
  Updates and clarifications to reflect amendments to the Streamlined Sales and Use Tax Agreement.
  Act 204's sales tax exemption for food, except soft drinks, sold by any child welfare facility licensed or certified under Chapter 48.
  Examples of items not directly used in manufacturing (to facilitate the administration of Act 28's modifications to the definition of manufacturing).
  Clarifications to earlier changes pertaining to Act 2 and Act 28.
The fiscal effects of these rule changes were included in the fiscal estimates of 2009 Acts 2, 28, 204 and 330. Consequently, these rule changes have no fiscal effect.
Anticipated costs incurred by private sector
This proposed rule order does not have a significant fiscal effect on the private sector.
Agency Contact Person
Dale Kleven, Dept. of Revenue
Mail Stop 6-40
2135 Rimrock Road
PO Box 8933
Madison WI 53708-8933
Phone: (608) 266-8253
Notice of Hearing
Transportation
NOTICE IS HEREBY GIVEN that pursuant to ss. 110.06, 110.20 (9) and 227.11 (2), Stats., the Department of Transportation will hold a public hearing to consider the amendment of Chapter Trans 131, Wis. Adm. Code, relating to the vehicle emission inspection process.
Hearing Information
The hearing will be held:
Date:   August 12, 2010
Time:   11:00 AM
Location:   Hill Farms State Transportation Bldg.
  Room 254
 
4802 Sheboygan Avenue
  Madison, WI
This hearing is held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call Carson Frazier at (608) 266-7857 with specific information on your request at least 10 days before the date of the scheduled hearing. Accommodations such as interpreters, English translators, or materials in alternative format will, to the fullest extent possible, be made available upon a request from a person with a disability to accommodate your needs.
Copies of Proposed Rule
A copy of the rule may be obtained upon request from 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 or via e-mail: carson.frazier@dot.state. wi.us to obtain copies of the proposed rule. Copies will also be available at the hearing.
Submittal of Written Comments
The public record on this proposed rule making will be held open until close of business the day of the hearing 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 or via e-mail: carson.frazier@dot.state. wi.us.
To view the proposed amendments to the rule, view the current rule, and submit written comments via e-mail/internet, you may visit the following website: http://www.dot.wisconsin.gov/library/research/law/rulenotices.htm.
Analysis Prepared by the Department of Transportation
Statutes interpreted
Section 110.20, Stats.
Statutory authority
Sections 110.06, 110.20 (9) and 227.11 (2), Stats.
Explanation of agency authority
Section 110.20, Stats., requires the Wisconsin Department of Transportation to administer a motor vehicle emission inspection and maintenance program to verify that vehicles customarily kept in a `non-attainment' county meet motor vehicle emission standards. Most private automobiles are subject to the emission limits, although certain newer and older vehicles are exempt. A non-attainment county is one that has air pollution that exceeds the federal Clean Air Act standards. Section 110.20 (13), Stats., requires the Department to waive compliance with emission standards if the vehicle owner proves that despite attempted repairs the vehicle cannot meet the standards and that the actual costs of repairs exceeded the repair cost limit. In general, a vehicle is tested every two years. The waiver is valid for 2 years, after which additional repairs may be required as a condition of registration. Current law at s. 110.20 (9) (b), Stats., requires the Department to promulgate rules prescribing a procedure for determining whether the cost of necessary repairs and adjustments exceeds the limit under sub. (13). The Department of Natural Resources determines the repair cost limits in an amount required by the federal Clean Air Act.
Related statute or rule
Sections 110.20, 285.30, Stats., and chs. NR 485 and Trans 131.
Plain language analysis
Current law requires vehicles registered in counties that do not meet federal Clean Air Act standards to be tested to ensure they meet pollutant emission limitations. In general, vehicles that are required to be tested and emit too many air pollutants cannot be registered. Chapter Trans 131 governs the vehicle emission inspection process. If a vehicle does not meet emission standards after repairs — up to the maximum cost required under law--the vehicle owner may request from the Department of Transportation a waiver of compliance that allows the polluting vehicle to be registered and used. When an owner requests a waiver to register a polluting vehicle, the vehicle must be inspected for evidence of tampering or disrepair. Section Trans 131.05 establishes the items that must be inspected, and their condition, that may show evidence of tampering. If tampering is evident, the Department may not issue a waiver of compliance from emission test standards.
Trans 131.05(1)(j) requires that to pass an anti-tampering inspection a Malfunction Indicator Light (MIL) must be operational and non-active (that is, not lit). It is expected that an adequate vehicle repair will cause the MIL to turn off, since the underlying condition triggering illumination of the MIL is corrected. In prior years, the Department inspected vehicles by direct tailpipe emission sampling, regardless of the MIL status. However, the Department now administers only the OBD II test, which reads engine performance and pollutant output through the vehicle's on-board diagnostic computer with no direct sampling of tailpipe emissions. The rule that prohibits issuing a repair cost waiver whenever a MIL is illuminated effectively prevents issuing a cost waiver to all tested vehicles, regardless of the amount spent on repairs. This is because a vehicle that cannot be repaired to meet pollutant emission standards under the repair-cost limit is polluting, and a properly functioning MIL should be illuminated to indicate those emissions. This creates a circularity problem: only a polluting vehicle will need a waiver from compliance, but if the vehicle's computer knows it is polluting and the MIL is lit, the waiver cannot be issued.
This proposed rule making amends s. Trans 131.05 (1) (j) to allow a “cost waiver" (a waiver of emission inspection based on the vehicle owner having spent an amount of money for repairs exceeding cost thresholds established in NR 485.045 and the vehicle still failing emission inspection) even if a vehicle's MIL is unable to be turned off.
This rule making makes two other clarifications to the rule. First, ch. Trans 131 refers to the vehicle emission inspection also as an “emission test." The proposed rule changes reference to “inspection," and reserves the term “test" to refer to the vehicle's internal computer check of diagnostic codes. In addition, the term “test" continues in the reference to the “remote sensing test" method of assessing vehicle emissions. Second, the proposed rule expands reference to the functions of the Technical Assistance Center to clarify that those functions may be performed by an inspector that the Department designates who may issue waivers of compliance. This is because program operations in the future may not simply rely on a physical location called a Technical Assistance Center for these functions to be carried out.
Comparison with federal regulations
Wisconsin's vehicle emission inspection program complies with U.S. Environmental Protection Agency (EPA) law and regulation. Wisconsin Department of Natural Resources (DNR) manages program compliance with EPA rules and laws through the Wisconsin State Implementation Plan. DNR administrative rule establishes the repair cost limit in accordance with EPA guidance for adjusting the repair cost limit.
Comparison with rules in adjacent states
Michigan:
Michigan does not have a vehicle emission inspection and maintenance program at this time.
Minnesota:
Minnesota does not have a vehicle emission inspection and maintenance program at this time.
Illinois:
Illinois performs the OBD II inspection. Illinois allows a vehicle owner to receive a “cost waiver" if, after certain expenditure, the vehicle still is non-compliant. Illinois allows a cost waiver even if the MIL cannot be turned off.
Iowa:
Iowa does not have a vehicle emission inspection and maintenance program at this time.
Summary of factual data and analytical methodologies
Trans 131.05 (1) (j) requires that to pass an anti-tampering inspection a Malfunction Indicator Light (MIL) must be operational and non-active (that is, not lit). It is expected that an adequate vehicle repair will cause the MIL to turn off, since the underlying condition is corrected. In prior years, the Department also provided an alternative test allowing a vehicle to be inspected regardless of the MIL status. However, now that the Department administers only the OBD II test, the Department's Office of General Counsel has determined that Trans 131.05 (1) (j) is contrary to the availability of repair cost waivers required in s. 110.20 (13), Stats., since the rule prevents issuing a cost waiver to all tested vehicles, regardless of the amount spent on repairs.
The proposed rule clarifies that the functions performed by the Technical Assistance Center need not be performed simply in a particular physical location, so that program operation may have flexibility in performing those functions. The proposed rule also makes some changes in language for consistency of reference to the vehicle emission inspection without making any substantive change.
Analysis and supporting documentation used to determine effect on small businesses
The proposed amendment codifies the Department's policy and practice to issue a cost waiver even if the MIL is unable to be turned off. Since the Department is following this policy currently, the proposed amendment will not affect small business. If, however, the Department's current policy were not in effect, this proposed rule would have the effect of potentially reducing cost for small business, as well as any other vehicle owner, since without this proposed rule, no cost waiver would be possible.
The proposed rule clarifies that the function performed by the Technical Assistance Center need not be performed in a particular physical location. This clarification has no effect on small business or any other vehicle owner. The functions will continue to be carried out.
Finally, language changes to refer to the vehicle emission inspection consistently throughout the rule have no substantive effect on small business or any other vehicle owner.
Small Business Impact
The proposed rule will have no effect on small business. The Department's Regulatory Review Coordinator may be contacted by e-mail at ralph.sanders@dot.state.wi.us, or by calling (414) 438-4585.
Fiscal Estimate
The Department estimates that there will be no fiscal impact on the liabilities or revenues of any county, city, village, town, school district, vocational, technical and adult education district, sewerage district, or federally-recognized tribes or bands.
The Department estimates that there will be no fiscal impact on state or private sector revenues or liabilities.
Agency Contact Person
Carson Frazier, Dept. of Transportation
Bureau of Vehicle Services, Room 253
P. O. Box 7911, Madison, WI 53707-7911
Phone: (608) 266-7857
Notice of Hearing
Workforce Development
Public Works Construction Contracts,
Chs. DWD 290-294
Loading...
Loading...
Links to Admin. Code and Statutes in this Register are to current versions, which may not be the version that was referred to in the original published document.