The bill also permits DOA to levy assessments against state agencies in any
amounts that DOA determines to be required to support DOA's land information
functions and the functions of the Wisconsin land council.
State procurement
Currently, with several exceptions, if the estimated cost of materials, supplies,
equipment or contractual services for any state agency in the executive branch of
state government exceeds $25,000, DOA, or the agency if DOA delegates purchasing
authority to the agency, must publicly solicit bids or competitive sealed proposals.
With certain exceptions, DOA and other state agencies to which DOA delegates
purchasing authority must make procurements from the person submitting the
lowest responsible bid or most advantageous competitive sealed proposal. With
certain exceptions, DOA and agencies to which DOA delegates purchasing authority

must purchase certain materials, supplies, equipment and contractual services from
state institutions or work centers for severely handicapped individuals. These
requirements do not apply to any purchases made by the division of information
technology services of DOA.
This bill provides that these requirements do not apply to: a) any purchases of
educational technology materials, supplies, equipment or contractual services made
by the division of information technology services of DOA for school districts,
cooperative educational service agencies, technical college districts and the board of
regents of the University of Wisconsin System; or to b) any purchases made by DOA
or any other state agency to which DOA delegates purchasing authority when the
agency purchases materials, supplies, equipment or contractual services for
information technology purposes. Under the bill, "information technology" means
the electronic processing, storage and transmission of information, including data
processing and telecommunications.
State information technology planning and grants
Currently, DOA may award grants from the information technology investment
fund to state agencies for information technology development projects. Before
awarding grants for any fiscal year, DOA must submit proposed criteria for awarding
the grants to the joint committee on information policy for the approval of the
committee. This bill provides instead that DOA may award grants for any fiscal year
in accordance with its proposed criteria if, within 14 working days after submittal
of the proposed criteria to the committee, the cochairpersons do not notify DOA that
the committee has scheduled a meeting for the purpose of reviewing the proposed
criteria. If DOA is so notified, it may not award grants until the proposed criteria
are approved by the committee.
Currently, DOA must promulgate rules concerning administration of grants for
information technology development projects, including grant criteria. This bill
repeals that directive. However, under general law, DOA is still required to
promulgate rules concerning statements of general policy and interpretations of
statutes that DOA specifically adopts to govern its enforcement or administration of
information technology development project grant requirements.
Currently, DOA awards grants to state agencies from the information
technology investment fund for information technology development projects once
each fiscal year. Grants for each fiscal year must be awarded by May 15 of the
preceding fiscal year. This bill permits DOA to award grants for projects to be
conducted during the 1997-98 fiscal year after the bill becomes law but no later than
a date specified by the secretary of administration. (See State finance.)
Currently, each state agency in the executive branch must adopt, revise
biennially and submit to DOA for its approval a strategic plan for the utilization of
information technology to carry out the functions of the agency. The plan must

identify all resources relating to information technology which the agency desires to
acquire, the priority for such acquisitions and the justification for such acquisitions.
This bill instead requires each plan to identify all proposed information
technology development projects that serve the business needs of the agency, the
priority for undertaking such projects and the justification for each project, including
the anticipated benefits of the project.
State penalty surcharges and assessments
Under current law, a person must provide biological specimens to be used for
deoxyribonucleic acid (DNA) analysis if the person has been convicted of, adjudicated
delinquent for or found not guilty by reason of mental disease or defect of certain
serious sexual offenses, if the person has been institutionalized under the civil
commitment law based on certain serious sexual offenses, if the person has been
found to be a sexually violent person, or if a court orders the person to provide
biological specimens. The crime laboratories of DOJ analyze the sample and
maintain a data bank based on the DNA analysis of the specimens.
Current law imposes various surcharges or assessments to be levied against
persons who violate certain laws; these surcharges and assessments must be paid in
addition to any fine or forfeiture (civil monetary penalty) imposed and in addition to
any other surcharge and assessment imposed. Current law also provides that any
person who is convicted of burglary or of certain sexual assaults and any person who
must provide biological specimens after being convicted of a crime must pay a DNA
analysis this surcharge of $250. Money collected from this surcharge is used to fund
the DNA analysis program conducted by the state crime laboratories; to maintain a
state data bank based on that DNA analysis; to help pay for the salary and fringe
benefits of one Milwaukee County assistant district attorney, who conducts
prosecutions using DNA analysis; and to provide statewide training regarding
prosecutions using DNA analysis.
This bill eliminates the requirement for a person convicted of burglary to pay
the $250 DNA analysis surcharge. The bill also creates a crime laboratories
assessment of $4 that must be imposed on any person found to have violated any
state law or local ordinance, except a law or ordinance relating to restrictions on
smoking inside buildings, to nonmoving traffic regulations or to safety belt use
requirements. The money collected from the crime laboratories assessment must be
used, along with money collected from the DNA analysis surcharge under current
law, for the following purposes: 1) to fund activities of the state crime laboratories
that relate to drug law enforcement assistance and drug investigations and analysis;
and 2) to fund the DNA analysis program conducted by the crime laboratories, to
maintain the data bank based on that DNA analysis and to conduct other activities
related to the use of DNA in criminal prosecutions. The bill also eliminates the use
of money collected from the DNA analysis surcharge to help pay for a Milwaukee
County assistant district attorney and to provide statewide training regarding
prosecutions using DNA analysis.

Conduct of state administrative hearings
Under current law, the division of hearings and appeals in DOA must assign
a hearing examiner to preside over certain contested case hearings of the
departments of health and family services, industry, labor and job development,
transportation and natural resources, as well as certain other specific types of
contested case hearings. This bill authorizes the division of hearings and appeals to
contract with any state agency to provide contested case hearing services to that
agency unless the agency is prohibited, under current law, from contracting for
contested case hearing services. The bill requires DOA to charge the other state
agency for the total costs of providing the hearing services.
Composition of the public records board
Currently, the public records board consists of 8 members. Five members are
state officers or designees of those officers and 3 members are appointed by the
governor for indefinite terms. Of the gubernatorial appointees, one is a
representative of a local government and one is a representative of a small business.
This bill increases the membership of the board to 10 members. The bill adds
the secretary of administration and director of state courts or their designees as
members, and also provides that, of the 3 gubernatorial appointees, one must be a
representative of a local government and the other 2 members must have experience
in records management or information technology. Under the bill, one of these 2
representatives must be an officer or employe of a state agency and one must be an
officer or employe of a private business located in this state.
Payment of small claims against the state
Currently, the claims board receives, investigates and makes recommendations
to the legislature concerning claims of $10 or more against the state that are not
otherwise authorized to be paid. The board may pay certain claims without
legislative approval. Other claims may be referred by the board to the legislature.
Any claim of less than $10 may be paid by DOA without referral to the claims board.
If the legislature does not allow a claim, a claimant may file suit on the claim if suit
is authorized to be brought.
This bill specifically permits any person who has a claim against the state to
file the claim with DOA. The bill permits DOA to pay any claim of less than $100
without referral to the claims board. Under the bill, the claims board is not required
to consider any claim of less than $100. In accordance with current law, if a claim
is not referred to the claims board, the legislature may still consider the claim and
if the legislature does not allow the claim, the claimant may file suit on the claim if
suit is authorized to be brought.
Executive assistants at public service commission
Under current law, the chairperson of the public service commission (PSC) may
appoint an executive assistant. This bill allows each commissioner of the PSC, in
addition to the chairperson, to appoint an executive assistant.

Content of certain annual reports
Under current law, DOA must submit a report to the appropriate legislative
standing committees, no later than January 1 and July 1 of each year, concerning the
distribution and usage of gasohol and alternative fuels in this state. This bill
requires that the report be submitted only once per year, no later than April 30.
Current law also requires DOA to submit an annual report to the recycling
market development board regarding DOA's resource recovery and recycling
activities during the preceding year. The report is required to include information
concerning the level of compliance by DOA and certain other agencies and
authorities with certain specified recycling law requirements, including
requirements relating to: 1) the use of recovered and recycled materials in state
construction projects; 2) the purchase of products made from recycled materials and
recovered materials; 3) the purchase of products that are reusable or recyclable; and
4) the separation of specified materials from solid waste for recycling. This bill
repeals the requirement that the annual report include information concerning the
level of compliance by DOA and other state agencies and authorities with
requirements relating to the separation of specified materials from solid waste for
recycling.
Public records and forms
Currently, the head of each state agency is required to file an annual report with
the public records board containing such information concerning records and forms
management as may be required by the board. This bill deletes this requirement.
Currently, the public records board is directed to create a registry in a format
that may be accessed by computer terminal, describing the records series maintained
by state agencies that may contain certain personally identifiable information. The
board may require state agencies to provide information required to create the
registry. This bill deletes the requirement to create this registry.
Currently, a state agency may not use or allow the use of personally identifiable
information under a matching program (a computerized comparison of information
in one records series to information in another records series) unless the agency first
creates a document that describes the purpose and authority for the program, the
justification for the program, the anticipated results and a description of the
information that will be matched, and sends a copy of the document to the public
records board within 30 days of its creation. No state agency may take adverse action
against an individual as a result of information obtained by a matching program
unless the agency finds that the information contained in a records series that is
matched under the program is "sufficiently reliable". This bill deletes all
requirements and restrictions pertaining to the creation and use of matching
programs by state agencies.

Campaign finance filing fees
This bill imposes a biennial filing fee of $100 upon individuals, committees,
groups and corporations registered with the state elections board that are subject to
a campaign finance reporting requirement, other than candidates and personal
campaign committees and individuals who, or committees, groups or corporations
which, do not make expenditures exceeding $2,500 within a 2-year period. Any
individual who, and any committee, group or corporation which, fails to pay the filing
fee within the time prescribed is subject to a forfeiture (civil penalty) of $500 plus
triple the amount of the delinquent payment.
Under the bill, revenues from fee collections are 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.
Settlement of claims and actions against the state
Currently, the attorney general may negotiate and settle actions brought
against a state department or against an officer, employe or agent of this state acting
within his or her duties. This authority also applies to actions brought against
certain other entities, including the Wisconsin state public building corporation, the
patients compensation fund peer review council, and the health care liability board
of governors. The attorney general may negotiate and settle these claims even before
an action is commenced on a claim. This bill requires the approval of DOA before the
attorney general may settle these actions or claims.
Literacy improvement grants
This bill authorizes the governor to award grants to local governments or
nonprofit organizations in support of programs to improve literacy.
Gifts for endangered resources program
Currently, under the code of ethics for state public officials (which applies to all
elective and major appointive officials), no person may offer or give to a state public
official, and no state public official may solicit or accept from any person, anything
of value if it could reasonably be expected to influence the official's vote, official
actions or judgment, or could reasonably be considered as a reward for any official
action or inaction on the part of the official.
This bill provides that this prohibition does not apply to the offer or gift to a
state public official who administers the endangered resources program in the
department of natural resources, or to the solicitation or acceptance by such an
official, of anything of value for the benefit of that program.
Taxation
Income taxation
The department of commerce currently administers the development zone
program, the development opportunity zone program and the enterprise

development zone program. These are economic development programs that provide
tax benefits to businesses that operate in areas that fulfill certain requirements.
Generally, after the department designates an area as one of the 3 types of
development zones, a business that conducts or that intends to conduct economic
activity in the designated zone may be certified by the department as eligible for
certain income and franchise tax credits. This bill discontinues the following income
tax and franchise tax credits: 1) the development zones day care credit; 2) the
development zones environmental remediation credit; 3) the development zones
investment credit; 4) the development zones jobs credit; 5) the development zones
location credit; 6) the development zones research credit; and 7) the development
zones sales tax credit. The bill establishes a new development zones credit based
instead on the creation or retention of jobs and on expenses incurred to remediate
environmental problems.
Under current law, a person who files an incorrect income or franchise tax
return, or who fails to file a required income or franchise tax return, with intent to
defeat or evade the income or franchise tax assessment required by law, is liable for
a penalty equal to 100% of the tax on the entire underpayment.
Under this bill, a person who files a frivolous income tax return is liable for a
penalty of $500 in addition to any other penalty for which the taxpayer may be liable.
(This penalty is similar to a provision of the Internal Revenue Code that applies to
the federal income tax laws.) A frivolous tax return is defined as a return that does
not contain enough information to figure the correct tax owed by the taxpayer or that
contains information that indicates that the self-assessment is substantially
incorrect.
Under current law, for individual income tax purposes, qualified real estate
agents and direct sellers of tangible consumer products, such as door-to-door
salespersons, may be treated as independent contractors or as employes, depending
on the individual application of 20 factors identified by the Internal Revenue Service.
If such a person is treated as an employe, the employe's employer must withhold
income tax. If such a person is treated as an independent contractor, the payer is not
required to withhold income tax because there is no employer-employe relationship,
although the individual is required to file and pay quarterly estimated income tax
payments.
Under the Internal Revenue Code, qualified real estate agents and direct
sellers of tangible consumer products are treated as "statutory independent
contractors" for whom no income tax withholding is required.
This bill federalizes Wisconsin's treatment of qualified real estate agents and
direct sellers. Under the bill, these persons are treated as "statutory independent
contractors" for whom no income tax withholding is required, although they are
required to file and pay quarterly estimated income tax payments.

Under current law, an individual's scholarship income is included in the
calculation of household income for purposes of the homestead tax credit. The
homestead tax credit is a refundable individual income tax credit that is based on
property taxes or rent constituting property taxes, and income. The scholarship
income is includable in the taxable year in which it is received. Under federal law,
certain scholarship income is included in the calculation of federal AGI in the taxable
year in which the academic period ends, which is usually in a different taxable year
from the year in which the income is received. Because the calculation of Wisconsin
AGI starts with a taxpayer's federal AGI, scholarship income is double counted for
certain individuals who claim the homestead tax credit.
This bill eliminates the double counting of scholarship income for certain
individuals who claim the homestead tax credit.
This bill exempts from income taxation the interest income generated by
revenue bonds issued by a local governmental unit or units to finance a premier
resort center in the Wisconsin Dells area. (See also Local government.)
Property taxation
Under current law, lottery proceeds fund a property tax credit only for owners
of principal dwellings. That credit is determined by multiplying the school tax rate
applicable to the property by an amount that is based on the amount of lottery
proceeds that are available for distribution. This bill discontinues that credit.
Under this bill, the available lottery proceeds are allocated to municipalities in
proportion to their total property tax levies. Then the amount allocated to each
municipality is allocated to each taxable property in proportion to its assessed value.
This bill increases the amount of the school levy tax credit by $100,000,000
beginning with the 1999 payment. The credit is applied to reduce property taxes
otherwise levied against all taxable property.
Other taxation
Under current law, when a person applies to the department of regulation and
licensing (DORL) to renew a professional or occupational credential, the person must
provide his or her social security number or, if the person is an entity such as
corporation, its federal employer identification number. DORL must deny an
application if a social security number or federal employer identification number is
not provided. In addition, before renewing the credential, DORL must request DOR
to certify whether or not the person is liable for delinquent taxes. If DOR certifies
that the person is liable for delinquent taxes, DORL must deny the application for
credential renewal. A person whose application is denied has a right to a hearing
before DOR and a right to judicial review in the circuit court for Dane County.
This bill expands these provisions to cover certain licenses, credentials,
permits, approvals, registrations and certifications (licenses) that are issued by the
following departments: DORL; an examining or affiliated credentialing board in
DORL; the department of agriculture, trade and consumer protection; the

department of commerce; the department of financial institutions; the department
of health and family services; the department of natural resources; the department
of public instruction; and the department of transportation.
Under this bill, a person who applies for a license or for license renewal or
continuation must provide his or her social security number or, if applicable, the
applicant's federal employer identification number, to the applicable licensing
department or board. If a social security number or federal employer identification
number is not provided, the licensing department or board must deny the
application. The bill also requires a licensing department or board to request DOR
to certify whether an applicant for a license is liable for delinquent taxes. In addition,
each licensing department, (but not a board), must enter into a memorandum of
understanding with DOR that requires the licensing department to request that
DOR certify whether a license holder is liable for delinquent taxes. DORL is required
to make such a request on behalf of a board. If DOR certifies a liability for delinquent
taxes, the licensing department or board must deny the application for issuance,
renewal or continuation of the license or revoke the license. Such a denial or
revocation is not subject to administrative review by the licensing department or
board or to judicial review. Instead, a person whose application is denied or whose
license is revoked has a right to a hearing before DOR. After a hearing, if DOR
determines that a person is not liable for delinquent taxes, the licensing department
or board must grant the application or reinstate the license, unless there are other
grounds for the denial or revocation. If DOR affirms its certification of liability after
a hearing, the licensing department or board must affirm its denial or revocation.
Such an affirmation is subject to judicial review in the circuit court for Dane County.
The bill also allows DOR to deny an application for a property assessor
certification or recertification or to revoke a property assessor certificate if the
applicant or certificate holder is liable for delinquent taxes. A person whose
application is denied or whose certificate is revoked has a right to a hearing and to
judicial review as described above.
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