AB150: Bill Text

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.

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

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB150, s. 1 Section 1. 5.05 (1) (c) of the statutes is amended to read:

AB150,117,19 5.05 (1) (c) Bring civil actions to require forfeitures for any violation of ch. 11 or s. 12.05 under s. 11.60 (4). Forfeiture actions brought by the board may concern only violations with respect to reports or statements required by law to be filed with it, and other violations arising under elections for state office or statewide referenda. The board may compromise and settle any civil action or potential action brought or authorized to be brought by it under ch. 11 s. 11.60 (4) which, in the opinion of the board, constitutes a minor violation, a violation caused by excusable neglect, or which for other good cause shown, should not in the public interest be prosecuted under such chapter. Notwithstanding s. 778.06, an action or proposed action authorized under this paragraph may be settled for such sum as may be agreed between the parties. Any settlement made by the board shall be in such amount as to deprive the alleged violator of any benefit of his or her wrongdoing and may contain a penal component to serve as a deterrent to future violations. In settling actions or proposed actions, the board shall treat comparable situations in a comparable manner and shall assure that any settlement bears a reasonable relationship to the severity of the offense or alleged offense. Forfeiture actions brought by the board shall be brought in the circuit court for the county wherein the violation is alleged to occur.

AB150, s. 2 Section 2. 5.05 (3) (d) of the statutes is created to read:

AB150,118,5 5.05 (3) (d) If the board receives a verified complaint under par. (a) alleging a violation of s. 12.05, the board shall investigate the complaint and make a public statement concerning the truthfulness of any false representation alleged in the complaint within 15 days of receipt of the complaint by the board, unless the board dismisses the complaint under par. (c).

AB150, s. 3 Section 3. 7.33 (1) (a) of the statutes is amended to read:

AB150,118,7 7.33 (1) (a) "Employe" has the meaning given under s. 101.01 (2) (a) (3).

AB150, s. 4 Section 4. 7.33 (1) (b) of the statutes is amended to read:

AB150,118,9 7.33 (1) (b) "Employer" has the meaning given under s. 101.01 (2) (b) (4).

AB150, s. 5 Section 5. 7.33 (1) (c) of the statutes is amended to read:

AB150,118,12 7.33 (1) (c) "State agency" has the meaning given under s. 20.001 (1) and includes an authority created under ch. 231, 232, 233 or 234.

AB150, s. 6 Section 6. 11.055 of the statutes is created to read:

AB150,118,16 11.055 Filing fees. (1) Except as provided in sub. (3), each individual who, or committee or group that, is required to register with the board under s. 11.05 shall annually pay a filing fee of $100 to the board.

AB150,118,24 (2) An individual who, or committee or group that, is subject to sub. (1) shall pay the fee specified in sub. (1) together with the continuing report filed under s. 11.20 (4) in January of each year. If an individual, committee or group registers under s. 11.05 or changes status so that sub. (1) becomes applicable to the individual, committee or group during a calendar year, the individual, committee or group shall pay the fee for that year with the filing of the individual's, committee's or group's registration statement under s. 11.05 (1) or (2) or at any time before the change in status becomes effective.

AB150,119,3 (3) Subsection (1) does not apply to any registrant under s. 11.05 for any calendar year during which the registrant does not make disbursements exceeding a total of $1,000.

AB150, s. 7 Section 7. 11.20 (4) of the statutes is amended to read:

AB150,119,11 11.20 (4) Continuing reports under s. 11.06 (1) by committees or individuals supporting or opposing candidates for office, including committees of a political party, and by individuals or groups supporting or opposing a referendum shall be received by the appropriate filing officer no earlier than January 1 and no later than January 31; and no earlier than July 1 and no later than July 20. Individuals, committees and groups to which s. 11.055 (1) applies shall pay the fee imposed under that subsection with their continuing reports filed in January.

AB150, s. 8 Section 8. 11.36 (1) of the statutes is amended to read:

AB150,119,21 11.36 (1) No person may solicit or receive from any state officer or employe or from any officer or employe of the University of Wisconsin Hospitals and Clinics Authority any contribution or service for any political purpose while the officer or employe is on state time or is engaged in his or her official duties, except that an elected state official may solicit and receive services not constituting a contribution from a state officer or employe or an officer or employe of the University of Wisconsin Hospitals and Clinics Authority with respect to a referendum only. Agreement to perform services authorized under this subsection may not be a condition of employment for any state such officer or employe.

AB150, s. 9 Section 9. 11.36 (3) and (4) of the statutes are amended to read:

AB150,120,2 11.36 (3) Every person who has charge or control in a building, office or room occupied for any purpose by this state or, by any political subdivision thereof or by the University of Wisconsin Hospitals and Clinics Authority shall prohibit the entry of any person into that building, office or room for the purpose of making or receiving a contribution.

AB150,120,6 (4) No person may enter or remain in any building, office or room occupied for any purpose by the state or, by any political subdivision thereof or by the University of Wisconsin Hospitals and Clinics Authority or send or direct a letter or other notice thereto for the purpose of requesting or collecting a contribution.

AB150, s. 10 Section 10. 12.60 (title) of the statutes is amended to read:

AB150,120,8 12.60 (title) Penalties; enforcement.

AB150, s. 11 Section 11. 12.60 (1) (b) of the statutes is amended to read:

AB150,120,12 12.60 (1) (b) Whoever violates s. 12.03, 12.05, 12.07, 12.08 or 12.13 (3) (b), (c), (d), (g), (i) or (n) to (x) may be fined not more than $1,000, or imprisoned for not more than 6 months or both.

AB150, s. 12 Section 12. 12.60 (1) (bm) of the statutes is created to read:

AB150,120,15 12.60 (1) (bm) Whoever intentionally violates s. 12.05 may be fined not more than $1,000 or imprisoned for not more than 6 months or both.

AB150, s. 13 Section 13. 12.60 (1) (c) of the statutes is amended to read:

AB150,120,18 12.60 (1) (c) Whoever violates s. 12.05 or 12.13 (3) (am) or (4) may be required to forfeit not more than $500.

AB150, s. 14 Section 14. 12.60 (4) of the statutes is amended to read:

AB150,120,23 12.60 (4) Prosecutions under Violations of this chapter shall be conducted in accordance with may be prosecuted in the manner provided in s. 11.61 (2), except that any civil violation of s. 12.05 may be prosecuted in the manner provided in s. 11.60 (4).

AB150, s. 15 Section 15. 13.101 (4g) of the statutes is amended to read:

AB150,121,4 13.101 (4g) At the request of the department of agriculture, trade and consumer protection under s. 92.14 (4r), the committee may transfer funds from the appropriation under s. 20.370 (4) (cq) (6) (aq) to the appropriation under s. 20.115 (7) (q) if necessary to provide grants under s. 92.14 (4) (c).

AB150, s. 16 Section 16. 13.101 (6) (a) of the statutes is amended to read:

AB150,121,25 13.101 (6) (a) As an emergency measure necessitated by decreased state revenues and to prevent the necessity for a state tax on general property, the committee may reduce any appropriation made to any board, commission, department, the university of Wisconsin system or to any other state agency or activity by such amount as it deems feasible, not exceeding 25% of the appropriations, except appropriations made by ss. 20.255 (2) (ac), (bc), (bh), (bm), (cg) and (cr), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax) and (6) (aq) and (ar), 20.435 (4) (a), (d) and (e) (1) (c), (6) (a) and (7) (da), 20.445 (3) (a) and (d) and 20.835 (7) (ac), (cg) and (cr) or for forestry purposes under s. 20.370 (1), or any other moneys distributed to any county, city, village, town or school district. Appropriations of receipts and of a sum sufficient shall for the purposes of this section be regarded as equivalent to the amounts expended under such appropriations in the prior fiscal year which ended June 30. All functions of said state agencies shall be continued in an efficient manner, but because of the uncertainties of the existing situation no public funds should be expended or obligations incurred unless there shall be adequate revenues to meet the expenditures therefor. For such reason the committee may make reductions of such appropriations as in its judgment will secure sound financial operations of the administration for said state agencies and at the same time interfere least with their services and activities.

****Note: This is reconciled s. 13.101 (6) (a). This Section has been affected by drafts with the following LRB numbers: -2153/1 and -2568/3.

AB150, s. 17 Section 17. 13.172 (1) of the statutes is amended to read:

AB150,122,6 13.172 (1) In this section, "agency" means an office, department, agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts, and any authority created in ch. 231, 233 or 234.

AB150, s. 18 Section 18. 13.48 (2) (j) of the statutes is repealed.

AB150, s. 19 Section 19. 13.48 (8) (title) of the statutes is amended to read:

AB150,122,10 13.48 (8) (title) Expansion at Green Bay correctional institution outside of walls prohibited restricted .

AB150, s. 20 Section 20. 13.48 (8) of the statutes is renumbered 13.48 (8) (a) and amended to read:

AB150,122,14 13.48 (8) (a) Further Except as provided in par. (b), further expansion at Green Bay correctional institution outside of the walls is prohibited.