LRB-4212/1
PEN&TNF&JS:all:kaf
1995 - 1996 LEGISLATURE
September 12, 1995 - Introduced by Representative Brancel, cosponsored by
Senator Weeden, by request of Governor Tommy G. Thompson. Referred to
Joint survey committee on Tax Exemptions.
AB557,4,6
1An Act to repeal 20.395 (2) (bt), 20.395 (4) (bh), 85.20 (4m) (am), 85.20 (4m) (e),
285.50, 86.30 (2) (a) 3. c., 86.32 (2) (am) 5. and 6., 114.002 (4), 114.002 (13), 114.20
3(2) (c), 114.20 (7), 114.20 (13) (b) 3., 166.20 (7g), 341.14 (6r) (b) 3., 343.03 (1) (c),
4343.03 (8), 343.14 (4) and 343.265 (1) (a) and (b);
to renumber 20.395 (1) (bs),
585.085 (1) and 343.14 (3);
to renumber and amend 20.395 (1) (bw), 85.20 (4m)
6(a), 85.26 (2) (a), 114.20 (9) (a) to (c), 341.297 (2), 343.05 (4) (a) 3. and 343.265
7(1) (intro.);
to amend 20.395 (1) (bq), 20.395 (1) (bu), 20.395 (2) (bu), 20.395 (3)
8(bq), 20.395 (3) (bv), 20.395 (3) (bx), 20.395 (3) (cq), 20.395 (3) (cv), 20.395 (3)
9(cx), 20.395 (3) (eq), 20.395 (3) (ev), 20.395 (3) (ex), 20.395 (5) (cq), 20.395 (5)
10(dk), 20.505 (1) (md), 20.566 (1) (u), 20.866 (2) (uv), 20.866 (2) (uw), 25.29 (1) (c),
1125.29 (1) (d) 1., 25.29 (1) (dm), 25.40 (1) (a) 3., 70.337 (7), 73.01 (4) (a), 78.01 (2)
12(e), 78.01 (2m) (f), 78.015 (1), 78.12 (2) (intro.), 78.12 (5) (a), 78.40 (1), 78.49 (1)
13(a), 78.49 (1) (b), 78.75 (1m) (a) 2., 78.75 (1m) (a) 3., 84.013 (3) (ye), 84.076 (5),
1484.59 (2), 84.59 (6), 85.08 (4m) (e) 1., 85.085 (3), 85.20 (4m) (em) 1., 85.20 (4s),
1585.24 (3) (d) (intro.), 85.243 (title), 85.243 (2) (a), 86.30 (2) (a) 3. d., 86.30 (9),
1686.31 (3m), 86.315 (1), 110.08 (2), 114.002 (11), 114.20 (1) (title), 114.20 (1) (a),
17114.20 (1) (b), 114.20 (2) (intro.), 114.20 (5), 114.20 (9) (d), 114.20 (12), 114.20
1(13) (b) 1., 114.20 (13) (b) 2., 114.20 (13) (b) 5., 114.20 (15) (b), 121.555 (2) (c) 1.,
2218.01 (2) (bd) 1g., 218.01 (2) (bd) 1r., 218.01 (2c) (c), 218.01 (3) (a) 24., 218.01
3(3x) (b) 2., 218.01 (3x) (b) 3., 218.01 (3x) (c) 1. (intro.), 218.01 (3x) (c) 2., 218.01
4(7m) (a), 218.01 (7m) (c), 340.01 (7m), 340.01 (7r), 341.08 (4), 341.14 (6r) (b) 2.,
5341.14 (6r) (b) 4., 341.26 (3) (a) 1., 341.43, 341.45 (title), 341.45 (1g) (a), 341.45
6(1g) (b), 341.45 (2), 341.45 (3), 341.45 (5), 343.02 (1), 343.03 (1) (a), 343.03 (1)
7(b), 343.03 (5), 343.05 (2) (a) 2., 343.05 (2) (c), 343.055 (5), 343.06 (1) (c), 343.06
8(2), 343.065 (title), 343.065 (1), 343.065 (2), 343.10 (2) (a) 1., 343.10 (10) (a),
9343.12 (2) (h), 343.16 (1) (a), 343.17 (3) (e) 1., 343.21 (1) (g), 343.23 (2), 343.24
10(2m), 343.245 (3) (b) 3. and 4., 343.245 (4) (b), 343.28 (1), 343.28 (2), 343.305 (10)
11(em), 343.315 (2) (f) (intro.), 343.315 (3) (a), 343.315 (3) (b), 343.32 (4), 343.325
12(title), 343.325 (2), 343.325 (3), 343.325 (3m), 343.325 (4), 343.325 (5), 343.325
13(6) (a), 343.44 (title), 343.44 (1), 343.44 (3), 344.12, 344.14 (2) (e), 346.70 (1),
14348.15 (3) (bg), (br), (bv) and (e), 348.175, 348.19 (2) (b) and (4), 348.27 (4), (9m)
15and (9r) and 967.055 (2) (a);
to repeal and recreate 20.395 (2) (bq) (title) and
16343.03 (1) (title); and
to create 20.395 (1) (bs), 20.395 (1) (bw), 20.395 (3) (aq),
1720.566 (1) (ge), 20.835 (4) (ge), 25.40 (1) (a) 12., 25.40 (2) (b) 15g., 70.429, 73.03
18(29m), 78.005 (13g), 84.01 (30), 84.013 (3) (kb) to (km), 85.085 (1b), 85.20 (4m)
19(a) 1. to 3., 85.20 (7), 85.243 (2) (b) 5., 85.26 (2) (a) 2., 86.30 (2) (a) 3. e., 86.30
20(2) (a) 3. f., 86.32 (2) (am) 8., 86.32 (2) (am) 9., 114.20 (9m)
(intro.), chapter 140,
21341.08 (2) (am), 341.08 (2) (cm), 341.08 (8), 341.21, 341.297 (2) (b), 341.45 (4g),
22341.45 (4m), 343.01 (2) (cb), 343.01 (2) (d), 343.05 (2) (c) 2., 343.14 (3) (b) and
23(c), 343.21 (1) (jm), 343.21 (1) (m), 343.245 (3) (b) 5., 343.315 (2) (fm), 343.315
24(2) (h), 343.315 (2) (i) and 343.44 (4r) of the statutes;
relating to: state finances
25and appropriations for the department of transportation; imposing an oil
1company franchise fee; authorizing populous counties to impose a petroleum
2products storage fee; the reporting date and payment date for the motor vehicle
3fuel tax; taxation of motor vehicle fuel that is not sold for use on highways;
4motor vehicle fuel and alternate fuel taxes and qualified motor vehicles; the
5formula for indexing the fuel taxes; the international fuel tax agreement and
6the petroleum product inspection and oil company franchise fees; authorizing
7construction of additional major highway projects; aids for county forest roads;
8environmental clean-up activities on lands acquired by the department of
9transportation; vehicle weight limit exceptions on a part of the national system
10of interstate and defense highways; numerous changes to the classified driver
11license system and commercial motor vehicle operation; eligibility for an
12occupational license; demerit point reduction for completion of a rider course
13relating to Type 1 motorcycle operation; vehicle accidents resulting in property
14damage; performance of motor vehicle registration and titling functions by
15motor vehicle dealers; farm truck registration; the fee for issuance or
16reissuance of special distinguishing motor vehicle registration plates; the fee
17for furnishing certain operators' records; permitting the department of
18transportation to make, record and use digitized images of applicants for
19operators' licenses and identification cards; local transportation and
20connecting highway aids; the funding of the urban mass transit operating
21assistance program; repaving a portion of I 43 in Milwaukee County;
22authorizing the department of transportation to conduct projects under the
23surface transportation discretionary grants program; railroad rehabilitation
24and construction loans; rehabilitation of private road crossings; the
25employment transit assistance program; the registration period and fees
1applicable to aircraft; eliminating hazardous materials transportation fees;
2delaying the expiration date of the disadvantaged business demonstration and
3training program; exempting railroad property acquired by the department of
4transportation from the tax-exempt property reporting requirement; granting
5bonding authority; granting rule-making authority; making appropriations;
6and providing penalties.
Analysis by the Legislative Reference Bureau
Introduction
This bill contains the governor's recommendations for appropriations from
segregated funds and from the general fund for the department of transportation
(DOT) for the 1995-97 fiscal biennium.
The bill repeals and recreates the appropriation schedule in chapter 20 of the
statutes as it relates to s. 20.395, stats., thereby setting the appropriation levels for
DOT for the 1995-97 fiscal biennium. With minor exceptions, the bill does not affect
appropriations other than those for DOT. The descriptions that follow relate to the
most significant changes in the law proposed in the bill. In many cases, changes in
the amounts of existing spending authority are not discussed.
For additional information concerning this bill, see the legislative reference
bureau's drafting files that contain separate drafts on many of the policy items.
Transportation
Transportation revenue
This bill creates an oil company franchise fee, which is imposed on persons who
import motor vehicle fuel into this state; produce, refine or manufacture motor
vehicle fuel in this state; or acquire motor vehicle fuel immediately after it is
imported into this state. The rate for the fee is 3.5% of the average weighted retail
price per gallon for the sale of motor vehicle fuel in this state. "Average weighted
retail price" means $1.10 for motor vehicle fuel received at terminals between
December 1, 1995, which is the effective date of the fee, and March 31, 1997. For
motor vehicle fuel received on April 1, 1997, and thereafter, "average weighted retail
price" means that price per gallon as determined by a method promulgated by the
department of revenue by rule within the range of $1.10 and $1.30, except that the
lower and upper limits are indexed annually as of April 1 to reflect the change in the
consumer price index during the previous year. Dyed diesel fuel; fuel exported from
this state; fuel sold to farmers; and fuel shipped from storage at a refinery, marine
terminal, pipeline terminal, pipeline tank farm or place of manufacture to another
entity of those types are exempt. Persons who use gasoline off highways for the
purpose of farming may apply for a refund of the fee.
The proceeds of this fee are part of the transportation projects fund and may be
pledged for that purpose.
Under current law, the rates for the motor vehicle fuel tax and for the alternate
fuels tax are indexed annually. A formula that has 2 factors, one that reflects
inflation and one that reflects consumption of fuel, is used in the indexing. This bill
provides that the consumption factor is not used in that indexing if the consumption
during the previous year is more than the consumption during the year before the
previous year.
This bill authorizes any county that has a population of at least 500,000 to
impose a fee at the rate of 2 cents per gallon on the storage of petroleum products,
excluding home heating fuel. The proceeds of this fee are required to be used only
for the county's mass transit system and for administration of the fee.
Under current law, diesel fuel sold for off-highway use is exempt from the motor
vehicle fuel tax. Under this bill, diesel fuel sold for off-highway use in a snowmobile,
an all-terrain vehicle that is not registered for private use or a recreational
motorboat is taxable.
Under current law, the tax on alternate fuels attaches at the time that the fuel
is delivered into the tank of a motor vehicle or, if it is not delivered that way, at the
time that the fuel is used. Under this bill, the tax also attaches at the time that the
fuel is delivered into the fuel tank of a snowmobile, all-terrain vehicle that is not
registered for private use or motorboat.
Under current law, refunds for motor vehicle fuel taxes or alternate fuel taxes
paid on fuel used in motorboats, except those registered as motor vehicles, may not
be claimed. This bill allows claims for taxes paid for fuel used in nonrecreational
motorboats.
Under current law, interstate motor carriers are required to pay the motor
vehicle fuel or alternate fuel tax imposed by this state by purchasing motor vehicle
fuel or alternate fuels within this state in an amount equal to the number of gallons
consumed while operating the vehicle upon the highways of this state; by remitting
the tax directly to DOT; or by remitting the tax to the base jurisdiction of the carrier
if that jurisdiction is a party to the international fuel tax agreement (IFTA). Carriers
are eligible for a credit or a refund equal to the tax on the motor vehicle fuel or
alternate fuel actually paid to the state in which it is used, but not to exceed the tax
imposed on motor vehicle fuel or alternate fuels by this state. Currently, only the
payment of taxes on motor fuel or alternate fuels qualifies for the credit or refund.
With certain exceptions, current law requires the department of industry, labor
and human relations (DILHR) to inspect petroleum products received into this state.
DILHR must assess a fee from the owner or other person for whom it inspects any
petroleum product. This fee is not refundable and may not be credited under IFTA.
This bill requires motor carriers to pay the oil company franchise and
petroleum product inspection fees in addition to the tax on motor vehicle fuel and
alternative fuel. Carriers who have paid these fees are entitled to a refund or credit
equal to the fees actually paid in the state in which it is used, but not to exceed the
fees imposed by this state.
Under current law, any person who operates a certain type of motor vehicle for
the transportation of persons or property in this state is required to pay a Wisconsin
motor vehicle fuel or alternate fuels tax on the gallons of fuel that were purchased
or obtained outside this state and which are consumed by the vehicle while being
operated in this state. This bill authorizes DOT to issue a 72-hour fuel trip permit
at a fee of not less than $15 to a person who would otherwise be required to pay the
Wisconsin motor vehicle fuel or alternate fuels tax. DOT is required to promulgate
rules regarding the issuance and use of these permits.
Highways
Current law requires that any major highway project, unlike other construction
projects undertaken by DOT, receive the approval of the transportation projects
commission (TPC) and the legislature before the project may be constructed. A major
highway project is a project having a total cost of more than $5,000,000 and involving
construction of a new highway 2.5 miles or more in length; reconstruction or
reconditioning of an existing highway that relocates at least 2.5 miles of the highway
or adds one or more lanes 5 miles or more in length to the highway; or improvement
of an existing multilane divided highway to freeway standards. There are currently
66 enumerated major highway projects approved for construction.
This bill adds 3 major highway projects recommended by TPC to the list of
enumerated projects.
Under current law, a county forest road aid program annually provides $200 per
mile of qualifying road to assist counties with the costs of improving public roads in
county forests. This bill increases the county forest road aid rate per mile from $200
to $600.
This bill permits DOT to fund environmental clean-up activities on lands
acquired by DOT that are not eligible to receive funding for the environmental
clean-up activities as part of a highway improvement project.
Current law imposes weight limitations for vehicles operating on highways in
this state and specifies exceptions to those vehicle weight limits. Certain vehicle
weight limit exceptions do not apply or are further restricted on highways that are
part of the national system of interstate and defense highways. These exceptions
include weight limitations for the transportation of raw forest and agricultural
products or of metallic or nonmetallic scrap and for transportation of materials
between industrial plants.
This bill provides that, for purposes of vehicle weight limit exceptions, USH 51
between Wausau and STH 78 and that portion of STH 78 between USH 51 and the
I 90/94 interchange near Portage are not part of the national system of interstate and
defense highways upon their federal designation as I 39.
Under this bill, if the total amount of federal funds available to DOT is less than
the amount of federal funds budgeted in this bill, DOT may increase the use of bond
proceeds in the major highway development program to replace the decreased
federal funding. These supplemental bond proceeds may not be used to increase the
total amount budgeted for the major highway development program.
This bill requires DOT to repave approximately 1.25 miles of I 43, replacing the
existing tined surface with a nontined surface, within one year.
Drivers and motor vehicles
Under current law, DOT administers a classified driver license system to
implement the requirements of the federal commercial motor vehicle safety act of
1986. The classified driver license system provides a comprehensive single license
authorizing the operation of specific classes and types of motor vehicles, including
commercial motor vehicles. In addition, DOT disqualifies any driver who has
committed certain serious traffic-related offenses from operating a commercial
motor vehicle for a certain period of time, up to a lifetime disqualification.
This bill makes numerous changes to the classified driver license system.
These changes include:
1. Creating new disqualifications for certain offenses relating to a commercial
driver license application and for operating a commercial motor vehicle while
ordered out-of-service for certain alcohol-related offenses. The bill imposes a longer
period of disqualification for an out-of-service violation if the person was operating
a hazardous materials transporter or a vehicle designed to carry, or which was
actually carrying, 16 or more persons.
2. Requiring a person operating, upon a highway in this state, motorized
construction equipment that is designed principally for off-road use, to possess a
valid Wisconsin driver's license. The motorized construction equipment operator is
exempt from any commercial driver licensing requirements. Current law exempts
such operators from all licensing requirements of DOT.
3. Changing restricted commercial driver licenses to prohibit only the
operation of commercial motor vehicles in interstate commerce, rather than
prohibiting commercial motor vehicle operation outside this state and in interstate
commerce.
4. Increasing the fine that may be imposed on an employer who knowingly
allows or authorizes an employe to operate a commercial motor vehicle when the
employe is not validly authorized to operate the commercial motor vehicle. The
penalty is increased from a fine of not more than $5,000 to a fine of not less than
$2,500 nor more than $10,000.
5. Making ineligible for an occupational license any person whose license or
operating privilege was revoked or suspended within the previous year for a
controlled substances violation or a violation of the financial responsibility laws of
this state.
Current law permits the secretary of transportation to suspend or revoke a
person's operating privilege for repeated violations of state or local traffic laws. The
secretary is authorized to establish a schedule of demerit points based on the
seriousness of various traffic convictions. The secretary is required to reduce the
accumulated demerit points assessed against a person by up to 3 points if the person
successfully completes a rider course on motorcycle operation approved by the
secretary. Point reduction applies only to demerit points assessed for violations
committed before completion of the rider course while the person was driving or
operating a Type 1 motorcycle and may not occur more than once.
This bill removes the prohibition against such point reduction occurring more
than once per person.
Under current law, the operator of a vehicle involved in an accident resulting
in total damage of $500 or more to a publicly owned vehicle or to private property
must report the accident as soon as possible to the state patrol or to the law
enforcement agency of the jurisdiction where the accident occurred. Failure to report
an accident may result in a forfeiture of not less than $40 nor more than $200 or, for
a 2nd or subsequent offense within a year, a forfeiture of not less than $200 nor more
than $500.
Current law also requires DOT to notify the operator or owner of a motor vehicle
who is involved in an accident that results in property damage of $500 or more that
he or she must submit to DOT a deposit of security for the accident. A deposit of
security is not required if the person can provide proof of financial responsibility (an
applicable motor vehicle liability insurance policy or bond in effect at the time of the
accident providing minimum levels of liability insurance for bodily injury and
property damage). With certain exceptions, failure to provide a deposit of security
or proof of financial responsibility after an accident results in revocation of the
operator's motor vehicle operating privilege or of the registration of any vehicles
registered by the owner of the vehicle involved in the accident.
This bill raises the minimum property damage for these provisions from $500
to $1,000.
Under current law, a motor vehicle dealer may accept from a vehicle purchaser
applications and any required fees for registration or titling of the vehicle. The
dealer must forward the application and fees to DOT within 7 days after the vehicle
sale. DOT processes each application and forwards the applicable certificate of
registration or title to the purchaser.
This bill allows a motor vehicle dealer, by contract with DOT, to accept and
process applications, and any applicable fees, for vehicle registration or titling, and
to issue certificates of registration, certificates of title, registration stickers and
license plates. DOT may allow a motor vehicle dealer to charge an applicant a fee
for such services.
Under current law, farm trucks having a gross weight of 12,000 pounds or less
may be registered on a biennial basis for a fee of $42. This bill requires that each
application for registration of a farm truck having a gross weight of not more than
12,000 pounds include a certification that the applicant had or expects to have at
least $6,000 in gross farm profits in the current taxable year or at least one of the 2
previous taxable years. The bill also requires the department of revenue to include
a place on an appropriate tax form for a certification that the taxpayer earned at least
$6,000 in gross farm profits in the applicable taxable year.
Currently, members of authorized special groups may obtain special
distinguishing registration plates for certain vehicles registered with DOT that are
owned or leased by special group members. Special plates may be obtained for
automobiles, station wagons, motor homes and certain dual purpose motor homes,
farm trucks and dual purpose farm trucks. In addition to the regular registration
fee for the particular kind of vehicle, no fee is assessed to issue or reissue special
plates associated with endangered resources or Somalia War veterans, $15 is
assessed to issue or reissue special plates related to certain campuses of the
University of Wisconsin System and $10 is assessed to issue or reissue all other
special distinguishing registration plates.
This bill provides that a fee of $15 be assessed for the issuance or reissuance of
all special distinguishing registration plates, including endangered resources and
Somilia War veterans special plates.
Under current law, DOT may furnish copies of its computerized driving record
file to any person for a fee of $3 for each file of such records. This bill requires DOT
to charge a fee of $3 for each computerized file that was prepared for purposes
relating to maintenance of the computerized driving record file and contains
information from uniform traffic citations or motor vehicle accidents.
Under current law, DOT is required to take a photograph of any applicant for
a driver's license or identification card (ID card) and affix the photograph to the
driver's license or identification card issued to that applicant.
This bill authorizes DOT to take and use a digitized image of an applicant in
addition to, or in place of, a photograph for use on a driver's license or ID card issued
to that applicant. The bill also requires that any photograph, including a digitized
image, be kept confidential by DOT and be used only by DOT, by authorized law
enforcement authorities, by state agencies, by federal agencies or as the applicant
may direct.
Transportation aids
Under current law, DOT administers a local transportation aids program.
Under the program, DOT makes aid payments to a county based on a share of costs
formula for counties, and to a municipality (city, village or town) based on the greater
of a share of costs formula for municipalities or an aid rate per mile ($1,350 for 1995).
This bill increases the aid rate per mile to $1,415 in 1996 and to $1,480 for 1997 and
thereafter.
Under current law, DOT reimburses municipalities for the maintenance of
marked routes of the state trunk highway system designated as connecting
highways. This bill authorizes a 3% annual increase in the connecting highways aid
program for 1996 and 1997, increasing the connecting highway aid rate per mile to
a maximum of $11,105 per mile in 1997 for municipalities having a population over
500,000.
Under current law, DOT pays 42% of the operating expenses of an urban mass
transit system if the local public body that provides the mass transit system is
eligible for aid under the urban mass transit operating assistance program. DOT
also makes supplemental operating assistance payments to eligible systems with
annual operating expenses greater than $20,000,000 and an annual ridership of
more than 7,000,000 one-way trips.
This bill revises the funding formula for the program and eliminates
supplemental operating assistance payments. Under the bill, DOT makes state aid
payments sufficient to ensure that the combination of state and federal aids
contributed toward the operating expenses of an urban mass transit system equals
a uniform percentage established by DOT. The bill requires DOT to establish
uniform percentages for each of the following: 1) mass transit systems in urban areas
having a population of less than 50,000; 2) mass transit systems in urban areas
having a population between 50,000 and 200,000; and 3) mass transit systems in
urban areas having a population of more than 200,000.
This bill requires DOT to establish, by rule, cost-efficiency standards for urban
mass transit systems and, if a mass transit system incurs costs inconsistent with
those standards, to exclude those costs from operating expenses for purposes of mass
transit aid or to reduce the amount of aid for the mass transit system under the
program. The bill requires DOT to establish a transit committee to assist in
developing the cost-efficiency standards and to advise DOT on implementing the
standards.
This bill increases the level of revenue bonding for major highway projects and
transportation administrative facilities from $950,834,000 to $1,067,731,400, of
which not more than $1,025,434,300 may be used to fund such projects and facilities.