Note: Form S-209 is available on the department's web site at www.revenue.wi.gov.
Examples: 1) Company A raises various animals for sale for use in research. Company A sells more than 50% of its animals to biotechnology businesses for exclusive and direct use in qualified research. 100% of the feed Company A purchases for exclusive and direct use in raising its animals is exempt.
2) Company T raises various animals for sale for use in research. Company A uses cages to raise some of these animals. The cages have a life expectancy of 5 years. Company T's purchases of cages are exempt only if more than 50% of all the animals raised by Company T are sold to organizations described in par. (a) for exclusive and direct use by such an organization in qualified research or manufacturing.
3) Company K raises various animals for sale for use in research. Company K does not sell more than 50% of its animals to organizations described in par. (a) for exclusive and direct use by such an organization in qualified research or manufacturing. Company K does not qualify for the exemptions in sub. (1) (c) and (d).
(5) Certification of biotechnology business by the department. (a) For purposes of the exemptions in sub. (1) (c) and (d), the department is required to certify a business as a biotechnology business. This subsection outlines the rules and procedures for a person to be certified as a biotechnology business by the department.
(b) A business is a biotechnology business when all of the following conditions are satisfied:
1. The business is engaged primarily in biotechnology. A business is engaged primarily in biotechnology for the period described in par. (c) when more than 50% of the business' activities during that period are devoted to the application of biotechnologies.
2. The business has received notice from the department that the business has been certified, with respect to a prescribed period determined under par. (c), that the business is a biotechnology business.
(c) The certification period under par. (b) 2. shall correspond to the business' tax year as determined for federal income tax purposes, including short years, subject to the following conditions:
1. If a business is certified by the department with respect to a previous tax year, the certification is valid for the previous tax year.
2. If a business is certified for a current tax year, the certification is valid until the expected end of the tax year unless, during such tax year the business' tax year terminates earlier than expected. When a tax year terminates earlier than expected, the certification is valid until the actual end of the tax year as determined for federal income tax purposes.
(d) A business may apply for certification with a form and in the manner prescribed by the department.
(e) Notwithstanding any other provision in this subsection, the department may:
1. Revoke any certification granted with respect to a period under par. (c) (1) or (2), but only upon information that either the business' application for certification contained a misstatement as to the business' gross income or expenses and deductions or the business no longer qualifies as a biotechnology business.
2. Require any business seeking certification as a biotechnology business to submit additional information, as determined by the department, prior to the department granting or denying the applicant's request for certification.
3. Require any business seeking certification to be certified only with respect to its previous tax years, until the department determines otherwise.
ADMINISTRATIVE RULES
FISCAL ESTIMATE
AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original Updated Corrected
Administrative Rule Chapter, Title and Number
Section Tax 11.07 – Property used in qualified research and property used to raise research animals
Subject
Sales and use tax exemptions for biotechnology
Fund Sources Affected
Chapter 20 , Stats. Appropriations Affected
GPR FED PRO PRS SEG SEG-S
Fiscal Effect of Implementing the Rule
X No Fiscal Effect
Indeterminate
Increase Existing Revenues
Decrease Existing Revenues
Increase Costs
Could Absorb Within Agency's Budget
Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
State's Economy
Local Government Units
Specific Businesses/Sectors
Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes X No
Policy Problem Addressed by the Rule
The rule does not create or revise policy, other than to reflect a statutory change.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
As indicated in the attached fiscal estimate, the fiscal effect of creating sales and use tax exemptions for biotechnology was reflected under general fund condition statements subsequent to 2009 Wisconsin Act 28. The rule itself does not create any further economic or fiscal impact or implementation and compliance costs beyond the statutes it interprets.
No comments concerning the economic effect of the rule were submitted in response to the department's solicitation.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Clarifications and guidance provided by administrative rules may lower the compliance costs for businesses, local governmental units, and individuals.
If the rule is not implemented, Chapter Tax 11 will be incomplete in that it will not reflect current law.
Long Range Implications of Implementing the Rule
No long-range implications are anticipated.
Compare With Approaches Being Used by Federal Government
N/A
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
N/A
Assumptions used in arriving at fiscal estimate
2009 Wisconsin Act 28, the 2009-11 biennial budget bill, created an exemption (under s.77.54 (57)) for: certain tangible personal property sold to persons who are engaged primarily in manufacturing or biotechnology in this state and are used exclusively and directly in qualified research; and certain tangible personal property used exclusively and directly in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for exclusive and direct use by any such entity in qualified research or manufacturing.
The effective date of the exemption is January 1, 2012.
The proposed rule modifies TAX 11 to reflect the law changes, establish certification criteria for biotechnology businesses, improve clarity, and add examples to illustrate the tax treatment of certain items under the exemptions under s.77.54 (57).
The proposed rule includes:
  Criteria used by the department to certify a business as a “biotechnology business".
  Definitions for “biotechnology products" and “biotechnology services".
  Clarification that “engaged primarily in manufacturing or biotechnology in this state" means more than 50% of a person's activity in Wisconsin is manufacturing or biotechnology.
  Examples to clarify the tax treatment of certain items under the exemption.
The fiscal effect of the exemptions under s.77.54 (57) has already been reflected under general fund condition statements subsequent to 2009 Act 28 (where the annual sales tax loss of the exemptions was estimated at $10 million annually). Since the fiscal impact of the statutory change has already been reflected, the proposed rule has no fiscal effect.
Notice of Hearing
Safety and Professional Services
Safety, Buildings, and Environment, Part II
Chs. SPS 326-360
NOTICE IS HEREBY GIVEN that pursuant to sections 101.02 (1) and 101.17, Stats., the Department of Safety and Professional Services will hold a public hearing on proposed rules under Chapter SPS 333, relating to Passenger Ropeways.
Hearing Information
The public hearing will be held as follows:
Date:   Tuesday, February 28, 2012
Time:   10:00 A.M.
Location:   1400 East Washington Avenue
  Room 121C
  Madison, WI 53703
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 (608) 266-8741 or (608) 264-8777 (TTY) at least 10 days before the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.
Appearances at the Hearing and Submittal of Written Comments
Interested persons are invited to appear at the hearing and present comments on the proposed rules. Persons making oral presentations are requested to submit their comments in writing. Persons submitting comments will not receive individual responses. The hearing record on this proposed rulemaking will remain open until March 2, 2012 to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. Written comments should be submitted to James Quast, at the Department of Safety and Professional Services, P.O. Box 2689, Madison, WI 53701-2689, or Email at jim.quast@wisconsin.gov.
The small business regulatory coordinator for the Department of Safety and Professional Services is Greg Gasper, who may be contacted at telephone (608) 266-8608, or Email at greg.gasper@wisconsin.gov.
Copies of Proposed Rule
The proposed rules and an analysis of the proposed rules are available on the Internet at the Safety and Buildings Division Web site at: http://dsps.wi.gov/sb/SB-HomePage
.html
. Paper copies may be obtained without cost from Shancethea Leatherwood, at the Department of Safety and Professional Services, Board Services Division, P.O. Box 8935, Madison, WI 53708, or Email shancethea.leatherwood@wisconsin.gov, or at telephone (608) 261–4438 or TDD Relay dial 711 in Wisconsin or (800) 947-3529. Copies will also be available at the public hearing.
Analysis Prepared by the Department of Safety and Professional Services
Statutes interpreted
Section 101.17, Stats.
Statutory authority
Sections 101.02 (1) and 101.17, Stats.
Related statute or rule
None.
Explanation of agency authority
Under the authority of s. 101.17, Stats., the Department of Safety and Professional Services has oversight of various mechanical devices and equipment, which includes ski lifts and tows, in order to protect public safety. The department fulfills this responsibility by promulgating the Passenger Ropeways Code, under Chapter SPS 333.
Summary of proposed rules
The current rules of Chapter SPS 333 require passenger ropeways to be designed, constructed, installed, maintained and operated in accordance with the 1999 edition of ANSI B77.1 standard Passenger Ropeways – Aerial Tramways, Aerial Lifts, Surface Lifts, Tows and Conveyors – Safety Requirements. The proposed rules will reference and adopt the 2011 edition of the ANSI B77.1 standard.
Summary of, and comparison with, existing or proposed federal regulations
There are no existing or proposed federal regulations that address the specific issues of this rule.
Comparison with rules in adjacent states
An Internet search of the ski lift regulations for the states of Illinois, Iowa, Michigan and Minnesota indicated the following:
  Illinois adopts and references the 2006 edition of the ANSI 77.1 standard.
  Iowa does not have any specific state standards for the design, construction, installation, maintenance or operation for passenger ropeways.
  Michigan adopts and references the 2006 edition of the ANSI 77.1 standard.
  Minnesota does not have any specific state standards for the design, construction, installation, maintenance or operation for passenger ropeways.
Summary of factual data and analytical methodologies
The department reviewed and compared provisions of the currently adopted 1999 edition ANSI B77.1 standard to the 2006 and 2011 editions. The latest editions of the ANSI standard make a few specific design provisions retroactive for existing ropeway systems. Most of the retroactive design requirements were established under the 2006 edition of the ANSI standard and addressed communications, evacuation power, rollback devices, cable catchers, and deropement switches. The 2011 ANSI edition retroactively requires bullwheel brakes for existing fixed grip aerial lift systems. Operation and maintenance provisions relating to signage are required to be more pictorial in nature with the 2006 ANSI edition compared to the 1999 edition.
Effect on small business including an analysis and supporting documents used to determine the effect or in preparation of economic impact report
The rules were developed with input from an advisory council that includes representatives of ski hill owners and operators. There are 50 existing ski/tubing facilities in the state operating approximately 200 passenger ropeway systems.
Two-thirds of the ski hill operations, involving about 130 passenger ropeway systems, are insured and inspected annually by third-party inspectors either employed or contracted by national insurance companies covering ski hill operations. It is the understanding of the department that the insurance company inspections are based upon the latest edition of the ANSI B77.1 standard.
The advisory council and the department believe that most of the existing passenger ropeway systems in the state currently comply with the retroactive design provisions of the latest ANSI B77.1 standards. If an existing passenger ropeway system would need to comply with the various retroactive requirements, the cost would depend upon the retroactive provisions involved and other variables including the type of passenger ropeway system, system manufacturer, the length of the system and the capacity of the system. Estimates, as provided by advisory council members, associated with the components of the various retroactive provisions are:
  communications, battery backup phone systems - $200.
  rollback devices and bullwheel brakes:
  rollback detection device - $2,800.
  automatic emergency hydraulic release system - $1,500.
  electronics - $1,000.
Some ski areas may need to replace signage to conform to the latest ANSI standard requirements. The typical cost of a sign is about $40. Signs are subject to weathering and most ski areas account for replacement in their operating budgets.
The department does not believe that the proposed rules will affect a significant number of existing ski hill operations.
Members of the advisory council are:
  Jim Engel, WI Ski Industries Association (WSIA)
  Sam Geise, Insurance Industry
  Hans Hauschild, WSIA
  Jim Hubing, National Ski Patrol System
  Don McKay, WSIA
  Gren Rudd, Ski Industry At Large
  Rick Schmitz, WSIA
  Dennis Schulz, Ski Industry At Large
  Chris Stoddard, Ski Industry At Large
  Rob Walz, WSIA
Initial Regulatory Flexibility Analysis
1.   Types of small businesses that will be affected by the rules.
  Businesses affected by the rules include those operations offering downhill skiing, snow boarding and/or tubing where access to the slopes and hills is provided by mechanical means, such as chair lift, surface lifts, rope tows or conveyor systems.
2.   Reporting, bookkeeping and other procedures required for compliance with the rules.
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