Under current law, a person may not divide a parcel of land into 5 or more lots
of 1 1/2 acres or less in area for the purpose of sale or building development (subdivide
the land) unless the person has the land surveyed and a plat of the land approved
and recorded. The person must also secure the approval of specified local and state
agencies. Under current law, the department of agriculture, trade and consumer
protection (DATCP) receives plats of proposed subdivisions, distributes copies to
other local and state agencies for their review and reviews the plats to determine
whether they comply with certain state requirements including those concerning
surveying, lot size, street width and format. Under current law, DILHR reviews
plats of subdivisions that will not be served by public sewage systems to determine
whether they comply with certain requirements.
This bill transfers the responsibilities of DATCP and DILHR relating to the
platting of subdivisions to the department of commerce (formerly, DOD) on July 1,
1996.
Termination of privacy council and advocate
Under current law, state and local authorities must develop rules of conduct for
employes who are involved in collecting, maintaining, using, providing access to,
sharing or archiving information with personally identifiable information
(information that can be associated with a particular individual in certain ways).
The authorities also must train employes in these matters and verify information
collected. There is a 9-member privacy council that appoints and advises a privacy
advocate and suggests legislation concerning personal privacy protection policies
relating to personally identifiable information. The privacy advocate advocates for
state and local government policies that protect personal privacy relating to
personally identifiable information collected or maintained by state or local
authorities. The advocate provides information to individuals and authorities and
assists individuals in exercising their rights in these matters. The advocate may
advocate on behalf of any individual before any authority on these matters; review
any authority's personally identifiable information policies; and gain access, under
certain conditions, to confidential information. This bill abolishes the privacy
council and eliminates the position of the privacy advocate.
Medicare supplemental insurance information transfer
Current law requires the board on aging and long-term care (BOALTC) to
provide to consumers information and counseling about insurance policies that are

available as a supplement to federal medicare insurance coverage, about long-term
care insurance and about eligibility requirements for medical assistance. This
information and counseling is funded by part of the revenue received from certain
fees and costs that the office of the commissioner of insurance (OCI) imposes on
insurers.
This bill transfers to OCI from BOALTC on January 1, 1996, the duty of
providing information and counseling on medicare supplemental insurance to
consumers. The bill eliminates the duty to provide information and counseling about
eligibility requirements for medical assistance.
Petroleum inspection
Under current law, DILHR collects the petroleum inspection fee. Under this
bill, effective on January 1, 1996, DOR collects that fee.
Under current law, with certain exceptions, DILHR must inspect petroleum
products received into this state before the products may be unloaded from their
original containers, sold, offered for sale or used. Currently, DILHR is not authorized
to perform other petroleum testing services. This bill authorizes DILHR to perform
inspections of petroleum products other than the testing that it currently performs,
and permits DILHR to establish fees for these petroleum testing services and to use
the fee revenues to pay for the cost of these services.
State office space consolidation
Currently, DOA is responsible, subject to the governor's approval, for the
leasing, acquisition, allocation and utilization of all real property by the state, except
as otherwise provided by law and, specifically, subject to a requirement that DOA
lease or acquire office space for the legislature and legislative service agencies at the
direction of the joint committee on legislative organization.
This bill directs DOA, with the governor's approval, to require physical
consolidation of office space utilized by any state agency having fewer than 50
full-time equivalent positions with office space utilized by another state agency,
whenever feasible. The requirement does not apply to the legislature or to legislative
service agencies.
Allocation of appropriation reductions
This bill requires the arts board, DATCP, the departments of health and social
services, justice and public instruction, and the UW System, to recommend to the
governor and JCF how budgetary efficiency measures to produce specified savings
in the 1996 and 1997 fiscal years shall be allocated among their departmental
general purpose revenue appropriations. The appropriations of each agency are
reduced by the specified savings amounts in this bill.
Method of removal of state officers
This bill provides that the method of removal of any state officer is the method
that governs the method of appointment for the office that the officer holds under
current law, rather than the method that governs the manner of appointment for the
officer under the law at the time that he or she was appointed.

State procurement
Currently, with several exceptions, state agencies must publicly advertise
proposed purchases and must purchase materials, supplies, equipment or services
by means of bidding or competitive sealed proposals from the person submitting the
lowest responsible bid or competitive sealed proposal. If the estimated cost of a
purchase exceeds $10,000, DOA or any agency to which it delegates purchasing
authority must publish 2 advertisements soliciting bids or proposals. Except when
printing or stationery is procured, if the estimated cost of a purchase is $10,000 or
less, DOA or the agency making the purchase may award an order or contract in
accordance with "simplified procedures" established by DOA. Except when printing
or stationery is procured, the secretary of administration may, with the approval of
the governor, in connection with any purchase, waive requirements for solicitation
of bids or proposals, as well as certain other requirements, including requirements
to make purchases on the basis of life-cycle costs, requirements to purchase
commodities and certain other goods or services from state institutions and
requirements to attempt to ensure that certain purchases are made from
minority-owned businesses. However, if the estimated cost of such a purchase
exceeds $10,000, DOA or the agency making the purchase must publish notice of its
intent to make a purchase without soliciting bids or proposals.
The secretary of administration may waive these requirements for purchases
of supplies, materials, equipment or contractual services, other than printing or
stationery, if the secretary determines that it is in the best interest of the state to do
so, in order to permit a purchase to be made from another state, from a county, city,
village, town or other governmental body in this state from a regional or national
consortium composed of nonprofit institutions that support governmental or
educational services.
This bill permits the secretary to waive these requirements, or delegate to a
state agency the authority to do so, in order to permit a purchase to be made through
a contract established by one of these governmental entities or consortia with one or
more 3rd parties.
The bill also increases the threshold for application of all of these laws from
$10,000 to $25,000.
Sovereign immunity
Under a portion of the common law, which pursuant to the state constitution
is in effect in this state unless modified by the constitution or by act of the legislature,
the state has "sovereign immunity". In other words, it is generally not possible to sue
the state in state court unless a statute or constitutional provision authorizes the suit
to be brought. The state constitution (article IV, section 27) directs the legislature
to provide by law the manner in which suits may be brought against the state. There
are a number of judicial interpretations which define the boundaries of the sovereign
immunity doctrine.
In Bahr v. Investment Board, 186 Wis. 2d 379 (Ct. App. 1984), the state court
of appeals held that the state investment board could be sued, notwithstanding
sovereign immunity, in part because the statutes provide that it is a "body corporate

with power to sue and be sued" and because it is an "independent agency of the state"
and its operations are not funded with general purpose revenue.
This bill creates a statute that reasserts the state's right not to be sued unless
suit is expressly authorized to be brought by law or by the constitution. The bill
further provides that no powers, functions or source of funding provided by law to any
instrumentality of this state that is engaged in a governmental function constitute
a waiver of the state's sovereign immunity to suit. The bill also deletes statutory
provisions that provide that certain state agencies may "sue and be sued" and that
certain state agencies are a "body corporate" or a "body corporate and politic". Under
judicial interpretations, when suits are otherwise permitted to be brought, an agency
may be sued notwithstanding the absence of this language. The bill further deletes
the provision stating that the investment board is an "independent agency of the
state".
In addition, the bill clarifies, in accordance with judicial interpretations, that
if the legislature refuses to allow a claim against the state, suit may be brought only
if suit is authorized to be brought (i.e., sovereign immunity does not apply).
Finally, the bill provides that the reassertion of sovereign immunity by the state
is intended as a restatement of existing law.
False representations affecting elections
Currently, no person may knowingly make or publish, or cause to be made or
published, a false representation pertaining to a candidate or referendum that is
intended or tends to affect voting at an election. Violators are subject to a fine of not
more than $1,000 or imprisonment for not more than 6 months or both. The state
elections board is required to accept from any person a complaint alleging a violation
of this and other prohibited election practices, except that the board need not
investigate a complaint that is not verified (sworn) or that the board finds to be
without merit. Prosecutions may be initiated by the appropriate district attorney or,
in certain cases, by the attorney general.
This bill provides that the current penalty for violating the false representation
statute applies only in situations where the violator acts intentionally. The bill
makes violators subject, in addition, to a forfeiture (civil penalty) not exceeding $500
for each violation in which criminal intent is not proven. The bill permits the
elections board to initiate civil prosecutions where a violation concerns an election
for state office or a statewide referendum, and to compromise and settle prosecutions
and proposed prosecutions. The bill also requires the elections board to investigate
and make a public statement concerning the truthfulness of any alleged false
representation within 15 days of receipt by the board of a verified complaint alleging
a violation of the law, unless the board finds the complaint to be without merit.
Campaign finance and lobbying regulation fees
This bill imposes an annual filing fee of $100 upon individuals, committees and
groups registered with the elections board that are subject to a campaign finance
reporting requirement, other than individuals who or committees or groups that do
not make expenditures exceeding $1,000 within a calendar year. The fee is utilized
for the general program operations of the elections board.

Currently, the general program operations of the elections board are financed
with general purpose revenue and no fees are imposed upon campaign finance
registrants.
Currently, with certain exceptions, a lobbyist who desires to act on behalf of a
principal to attempt to influence legislative action or state administrative rule
making must obtain a license from the state ethics board, for which there is a biennial
fee of $200. The license entitles a lobbyist to act on behalf of any number of
principals. With certain exceptions, a principal must file an authorization statement
with the board for each lobbyist who is authorized to act on behalf of the principal,
for which there is a biennial fee of $100. With certain exceptions, each principal who
retains one or more lobbyists to act on its behalf must also file a registration
statement with the board, for which there is a biennial fee of $300.
This bill increases the biennial fee for a license to act as a lobbyist to $250 if one
principal is represented and $400 if more than one principal is represented. The bill
also increases the biennial fee for filing an authorization statement to $125 and the
biennial fee for registration of a principal to $375.
Grant application processing fees
This bill directs DOA to process applications of state agencies for federal grants.
The bill also authorizes DOA to assess to an agency for which it processes an
application a fee for the expenses that DOA incurs in providing this service. The bill
appropriates to DOA all moneys received by DOA from collections of these fees for
the purpose of financing the cost of processing the applications.
Transfer of consumer protection functions
This bill requires DOA, no later than April 1, 1995, to submit to JCF legislation
transferring consumer protection functions from DOJ to DATCP.
Taxation
Income taxation
For taxable years beginning before January 1, 1994, the calculation of the
Wisconsin earned income tax credit (EITC) was based on the federal basic EITC
(based on the number of "qualifying children" that a claimant has).
Under current law, for taxable years beginning on or after January 1, 1994, the
Wisconsin EITC is decoupled from the federal credit and is calculated as a percentage
of the claimant's federal adjusted gross income and is also based on the number of
qualifying children that the claimant has. The credit is refundable, such that the
amount of the claim that exceeds the claimant's tax liability that was not used to
offset taxes that are due is paid to the claimant by check.
This bill creates a new method of calculating the credit. Under the bill, for
taxable years beginning on or after January 1, 1995, and within certain guidelines,
the department of revenue (DOR) determines the amount of a credit that may be
claimed, based on a percentage of the federal EITC for which the claimant is eligible.
The total amount that may be paid for all eligible claims is $60,300,000 in 1996 and
$65,800,000 in 1997.

Under current law, the top marginal rate of income taxation for single
individuals, certain fiduciaries and heads of households is 6.93% of all taxable
income exceeding $15,000. For married persons filing jointly, the top rate is 6.93%
of all taxable income exceeding $20,000 and for married persons filing separately, the
top rate is 6.93% of all taxable income exceeding $10,000.
For taxable years beginning on or after January 1, 1996, this bill changes the
top marginal rate for all individuals, certain fiduciaries, heads of households and
married persons to 6.87%, but the tax brackets remain unchanged.
Under current law, a school property tax credit may be claimed by certain
individuals and is calculated as an amount of up to 10% of the first $2,000 of property
taxes paid, or rent constituting property taxes that is paid. The credit is
nonrefundable, meaning that the amount of the credit that may be claimed may
equal, but may not exceed, the amount of income taxes for which the claimant would
otherwise be liable.
Under this bill the credit that may be claimed, generally, is calculated as an
amount of up to a percentage equal to the current top marginal individual income tax
rate for individual filers multiplied by the first $2,000 of property taxes paid, or rent
constituting property taxes that is paid.
Other taxation
This bill discontinues any property tax exemption that may be available to an
organization that offers a health maintenance organization (HMO) plan or a limited
service health organization (LSHO) plan (2 types of fixed payment health insurance
plans). The bill also discontinues any income or franchise tax exemption that may
be applied to income derived by an organization from a HMO or LSHO plan.
This bill discontinues the sales tax exemption for telephone companies' central
office equipment.
Under current law, car line companies (companies that lease railroad cars to
railroads) are taxed on the basis of their gross earnings. Under this bill, they are
instead taxed on the basis of the value of their equipment. The bill also discontinues
the tax on sleeping car companies (companies that lease only certain kinds of
railroad cars to railroads).
Under current law, DOR may collect from persons who owe delinquent taxes,
fees, interest or penalties a fee of $25 or 4.5% of the amount owed, whichever is
greater, for each of the person's delinquent accounts. Under this bill, the fee is $35
or 6.5% of the amount owed, whichever is greater.
Under current law, all corporations and insurers that are required to file an
income tax or franchise tax return are required to pay a temporary recycling
surcharge. Under this bill, all corporations and insurers that are required to file an
income tax or franchise tax return and that have at least $4,000 in total receipts from
all activities for the taxable year are required to pay the temporary recycling
surcharge.

Transportation
Under current law, the office of the commissioner of railroads (OCR) regulates
railroad activities in Wisconsin. This bill eliminates OCR, effective July 1, 1996, and
provides for the elimination or transfer of its functions as follows:
1. OCR is currently authorized to regulate railroads to prevent "unreasonable
or unjustly discriminatory" rates and inadequate services within the state. The bill
eliminates this authority.
2. Currently, before constructing any new track in the state, a railroad must
have a certificate, which is issued by OCR only after a hearing and a finding of "public
convenience and necessity". Under this bill, the certificate is issued by the
department of transportation (DOT), the hearing is discretionary and the public
convenience and necessity standard is abolished.
3. Under current law, OCR may order railroads to install protective devices at
crossings or make other safety improvements and may determine the type of grade
crossing used where a railroad intersects a street or another railroad. This bill
transfers this authority to DOT and authorizes DOT to issue orders in these matters
without a hearing, based on investigation and application of safety, programming
and cost allocation criteria promulgated by rule. The bill provides for review of DOT
orders in these matters by the division of hearings and appeals in the department
of administration.
4. OCR is currently assigned various other functions relating to railroads. In
most cases, those regulatory functions not eliminated in the bill are transferred to
DOT and functions having the character of contested case resolution are transferred
to the division. The bill requires the division to give due weight to the experience,
technical competence and specialized knowledge of DOT in transportation hearings
and reviews.
5. The bill transfers certain functions of OCR relating to railroad organization
to the department of revenue (DOR).
Veterans and military Affairs
Current law allows the department of veterans affairs (DVA), subject to
building commission approval, to construct and operate veterans cemeteries in
northwestern and southeastern Wisconsin. This bill allows a veteran who died while
on active duty, and his or her children and surviving spouse who has not remarried,
who were residents of this state at the time of their deaths, to be buried in these
cemeteries. The bill also allows a veteran who was discharged or released from active
duty under conditions other than dishonorable, and the veteran's children and
spouse who has not remarried, who were residents at the time of their deaths, to be
buried at these cemeteries.
This bill increases from $4,500 to $5,000 the maximum economic assistance
loan that DVA may grant to a veteran for the purchase of a business, the construction
of a garage, the education of the veteran or his or her children or to provide essential
economic assistance.
Under current law, a veteran is eligible for reimbursement for some of the costs
related to correspondence courses and part-time study taken within the state from

educational institutions that meet certain federal requirements. Under limited
circumstances, a veteran may receive reimbursement for a course taken outside the
state from an educational institution that is accredited by the North Central
Association of Colleges and Schools or an equivalent accrediting association. Under
this bill, the same criteria apply for out-of-state schools and in-state schools
(educational institutions that meet certain federal requirements).
Under current law, a county with a full-time county veterans' service officer is
eligible for a state grant of up to $5,000. If the county has a part-time county
veterans' service officer the maximum grant is $500. This bill provides grants to
counties for full-time county veterans' service officers composed of production
incentive awards and basic awards. The bill requires DVA to promulgate rules
regarding the production incentive awards. The basic awards must be based on the
population of the county, with the smallest counties receiving a grant of $8,500 and
the largest counties eligible for a grant of $13,000. The grants for part-time county
veterans' service officers are unchanged.
Under current law, a veteran is eligible to receive up to $3,000 for retraining to
obtain gainful employment. A veteran is eligible if he or she is enrolled in an
institution of higher education or enrolled in an on-the-job training program, meets
financial assistance criteria, is unemployed or has received a notice of loss of
employment and DVA has determined that the veteran's retraining program could
result in gainful employment. This bill adds veterans who are underemployed to
those veterans who are eligible to apply for a retraining grant.
This bill raises the general obligation bonding authority for the veterans
mortgage loan program by $170,000,000.
This bill increases the minimum amount that state veterans organizations
receive for providing claims services for veterans from $2,500 to $5,000 and the
maximum amount from $15,000 to $20,000. The bill also permits DVA to make
additional payments to these organizations based on the percentage of initial claims
filed with the U.S. department of veterans affairs.
Currently, a national guard member may submit an application for a tuition
grant no later than 6 months after completion of a course. Under this bill, a national
guard member must submit an application for a grant within 90 days after
completion of the course. The bill also reduces the tuition grant from 50% of the
actual tuition to 40% of the actual tuition. In addition, the bill requires DVA to sell
the national guard armory located in Whitefish Bay in Milwaukee County and use
the proceeds from the sale to provide tuition grants to national guard members equal
to 10% of the actual tuition paid by the members.
Currently, the national guard receives money from the transportation fund to
provide, at the direction of the governor, emergency medical services and helicopter
transportation for persons involved in accidents. This bill eliminates that program.

This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
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