AB557: Bill Text

LRB-4212/1

PEN&TNF&JS:all:kaf

1995 - 1996 LEGISLATURE

1995 Assembly BILL 557

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 An Act to repeal 20.395 (2) (bt), 20.395 (4) (bh), 85.20 (4m) (am), 85.20 (4m) (e), 85.50, 86.30 (2) (a) 3. c., 86.32 (2) (am) 5. and 6., 114.002 (4), 114.002 (13), 114.20 (2) (c), 114.20 (7), 114.20 (13) (b) 3., 166.20 (7g), 341.14 (6r) (b) 3., 343.03 (1) (c), 343.03 (8), 343.14 (4) and 343.265 (1) (a) and (b); to renumber 20.395 (1) (bs), 85.085 (1) and 343.14 (3); to renumber and amend 20.395 (1) (bw), 85.20 (4m) (a), 85.26 (2) (a), 114.20 (9) (a) to (c), 341.297 (2), 343.05 (4) (a) 3. and 343.265 (1) (intro.); to amend 20.395 (1) (bq), 20.395 (1) (bu), 20.395 (2) (bu), 20.395 (3) (bq), 20.395 (3) (bv), 20.395 (3) (bx), 20.395 (3) (cq), 20.395 (3) (cv), 20.395 (3) (cx), 20.395 (3) (eq), 20.395 (3) (ev), 20.395 (3) (ex), 20.395 (5) (cq), 20.395 (5) (dk), 20.505 (1) (md), 20.566 (1) (u), 20.866 (2) (uv), 20.866 (2) (uw), 25.29 (1) (c), 25.29 (1) (d) 1., 25.29 (1) (dm), 25.40 (1) (a) 3., 70.337 (7), 73.01 (4) (a), 78.01 (2) (e), 78.01 (2m) (f), 78.015 (1), 78.12 (2) (intro.), 78.12 (5) (a), 78.40 (1), 78.49 (1) (a), 78.49 (1) (b), 78.75 (1m) (a) 2., 78.75 (1m) (a) 3., 84.013 (3) (ye), 84.076 (5), 84.59 (2), 84.59 (6), 85.08 (4m) (e) 1., 85.085 (3), 85.20 (4m) (em) 1., 85.20 (4s), 85.24 (3) (d) (intro.), 85.243 (title), 85.243 (2) (a), 86.30 (2) (a) 3. d., 86.30 (9), 86.31 (3m), 86.315 (1), 110.08 (2), 114.002 (11), 114.20 (1) (title), 114.20 (1) (a), 114.20 (1) (b), 114.20 (2) (intro.), 114.20 (5), 114.20 (9) (d), 114.20 (12), 114.20 (13) (b) 1., 114.20 (13) (b) 2., 114.20 (13) (b) 5., 114.20 (15) (b), 121.555 (2) (c) 1., 218.01 (2) (bd) 1g., 218.01 (2) (bd) 1r., 218.01 (2c) (c), 218.01 (3) (a) 24., 218.01 (3x) (b) 2., 218.01 (3x) (b) 3., 218.01 (3x) (c) 1. (intro.), 218.01 (3x) (c) 2., 218.01 (7m) (a), 218.01 (7m) (c), 340.01 (7m), 340.01 (7r), 341.08 (4), 341.14 (6r) (b) 2., 341.14 (6r) (b) 4., 341.26 (3) (a) 1., 341.43, 341.45 (title), 341.45 (1g) (a), 341.45 (1g) (b), 341.45 (2), 341.45 (3), 341.45 (5), 343.02 (1), 343.03 (1) (a), 343.03 (1) (b), 343.03 (5), 343.05 (2) (a) 2., 343.05 (2) (c), 343.055 (5), 343.06 (1) (c), 343.06 (2), 343.065 (title), 343.065 (1), 343.065 (2), 343.10 (2) (a) 1., 343.10 (10) (a), 343.12 (2) (h), 343.16 (1) (a), 343.17 (3) (e) 1., 343.21 (1) (g), 343.23 (2), 343.24 (2m), 343.245 (3) (b) 3. and 4., 343.245 (4) (b), 343.28 (1), 343.28 (2), 343.305 (10) (em), 343.315 (2) (f) (intro.), 343.315 (3) (a), 343.315 (3) (b), 343.32 (4), 343.325 (title), 343.325 (2), 343.325 (3), 343.325 (3m), 343.325 (4), 343.325 (5), 343.325 (6) (a), 343.44 (title), 343.44 (1), 343.44 (3), 344.12, 344.14 (2) (e), 346.70 (1), 348.15 (3) (bg), (br), (bv) and (e), 348.175, 348.19 (2) (b) and (4), 348.27 (4), (9m) and (9r) and 967.055 (2) (a); to repeal and recreate 20.395 (2) (bq) (title) and 343.03 (1) (title); and to create 20.395 (1) (bs), 20.395 (1) (bw), 20.395 (3) (aq), 20.566 (1) (ge), 20.835 (4) (ge), 25.40 (1) (a) 12., 25.40 (2) (b) 15g., 70.429, 73.03 (29m), 78.005 (13g), 84.01 (30), 84.013 (3) (kb) to (km), 85.085 (1b), 85.20 (4m) (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 (2) (a) 3. f., 86.32 (2) (am) 8., 86.32 (2) (am) 9., 114.20 (9m) (intro.), chapter 140, 341.08 (2) (am), 341.08 (2) (cm), 341.08 (8), 341.21, 341.297 (2) (b), 341.45 (4g), 341.45 (4m), 343.01 (2) (cb), 343.01 (2) (d), 343.05 (2) (c) 2., 343.14 (3) (b) and (c), 343.21 (1) (jm), 343.21 (1) (m), 343.245 (3) (b) 5., 343.315 (2) (fm), 343.315 (2) (h), 343.315 (2) (i) and 343.44 (4r) of the statutes; relating to: state finances and appropriations for the department of transportation; imposing an oil company franchise fee; authorizing populous counties to impose a petroleum products storage fee; the reporting date and payment date for the motor vehicle fuel tax; taxation of motor vehicle fuel that is not sold for use on highways; motor vehicle fuel and alternate fuel taxes and qualified motor vehicles; the formula for indexing the fuel taxes; the international fuel tax agreement and the petroleum product inspection and oil company franchise fees; authorizing construction of additional major highway projects; aids for county forest roads; environmental clean-up activities on lands acquired by the department of transportation; vehicle weight limit exceptions on a part of the national system of interstate and defense highways; numerous changes to the classified driver license system and commercial motor vehicle operation; eligibility for an occupational license; demerit point reduction for completion of a rider course relating to Type 1 motorcycle operation; vehicle accidents resulting in property damage; performance of motor vehicle registration and titling functions by motor vehicle dealers; farm truck registration; the fee for issuance or reissuance of special distinguishing motor vehicle registration plates; the fee for furnishing certain operators' records; permitting the department of transportation to make, record and use digitized images of applicants for operators' licenses and identification cards; local transportation and connecting highway aids; the funding of the urban mass transit operating assistance program; repaving a portion of I 43 in Milwaukee County; authorizing the department of transportation to conduct projects under the surface transportation discretionary grants program; railroad rehabilitation and construction loans; rehabilitation of private road crossings; the employment transit assistance program; the registration period and fees applicable to aircraft; eliminating hazardous materials transportation fees; delaying the expiration date of the disadvantaged business demonstration and training program; exempting railroad property acquired by the department of transportation from the tax-exempt property reporting requirement; granting bonding authority; granting rule-making authority; making appropriations; and 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.