1997 Wisconsin Act 27 (the budget act) eliminated the Wisconsin works health
plan. This bill eliminates cross-references to the Wisconsin works health plan that
erroneously remained in the budget act.
This bill also transfers 2 full-time general program revenue positions in DHFS
from the subunit of DHFS primarily concerned with general administration to the
subunit of DHFS primarily concerned with health services planning, regulation and
delivery.
Taxation and tax administration
This bill makes a technical change that indicates the indexing of certain
elements of the mining tax has occurred since 1983.
This bill makes a technical correction to make the administration of the
aviation fuel tax consistent.

This bill responds to uncertainty about the validity of 2 vetoes to 1997
Wisconsin Act 27
. The bill provides that any person who is not otherwise required
to collect sales taxes or use taxes may register with the department of revenue and
that medicines that may not be dispensed without a prescription and that are
furnished without charge to a physician, nurse, nurse anesthetist, advanced practice
nurse, osteopath, dentist, podiatrist or optometrist are exempt from the sales tax and
the use tax.
Under the current tax incremental financing (TIF) program, a city or village
may create a tax incremental district (TID) in part of its territory to foster
development if at least 50% of the area to be included in the TID is blighted, in need
of rehabilitation or suitable for industrial sites. Before a city or village may create
a TID, several steps and plans are required. These steps and plans include public
hearings on the proposed TID, preparation and adoption by the local planning
commission of a proposed project plan for the TID, approval of the proposed project
plan by the common council or village board and creation by the city or village of a
joint review board to review the proposal. The joint review board, which is made up
of representatives of the overlying taxing jurisdictions of the proposed TID, must
approve the project plan or the TID may not be created. If an existing TID project
plan is amended by a planning commission, these steps are also required.
Also under current law, once a TID has been created, the department of revenue
(DOR) calculates the "tax increment base value" of the TID, which is the equalized
value of all taxable property within the TID at the time of its creation. If the
development in the TID increases the value of the property in the TID above the base
value, a "value increment" is created. That portion of taxes collected on the value
increment in excess of the base value is called a "tax increment". The tax increment
is placed in a special fund that may only be used to pay back the costs of the TID.
The costs of a TID, which are initially incurred by the creating city or village, include
public works such as sewers, streets and lighting systems; financing costs; site
preparation costs; and professional service costs. DOR authorizes the allocation of
the tax increments until the TID terminates or 23 years, or 27 years in certain cases,
after the TID is created, whichever is sooner. TIDs are required to terminate, under
current law and with one exception, once these costs are paid back, 16 years, or 20
years in certain cases, after the last expenditure identified in the project plan is made
or when the creating city or village dissolves the TID, whichever occurs first. Current
law also provides that in general, unless the project plan is amended, no expenditure
of tax increments may be made later than 7 years, or 10 years in certain cases, after
the TID is created. In no event, however, may the total number of years during which
expenditures are made plus the total number of years during which tax increments
are allocated exceed 27 years.
Also under current law, once a TID pays off the aggregate of all of its project
costs under its project plan but not later than the date on which it would otherwise
have to terminate, a planning commission may allocate positive tax increments
generated by that TID (a donor TID) to another TID (a donee TID) created by that
planning commission in which environmental pollution exists to the extent that

development has not been able to proceed according to the project plan because of the
environmental pollution. This increment sharing may only occur in TIDs created by
the cities of Kenosha, Glendale and Oshkosh. The provision that allows such
increment sharing does not apply after January 1, 2002, for Glendale and Oshkosh
and does not apply after August 1, 2016, for Kenosha.
Under this bill the increment sharing provision, as it relates to the city of
Oshkosh, does not apply after January 1, 2016. Also under this bill, a donor TID
created by the city of Oshkosh is not required to pay off its project costs before
contributing to the donee TID.
Under current law, no employe of DOR who performs any duty related to the
state lottery or the executive assistant or the secretary or deputy secretary of
revenue may do any of the following:
1. Have a direct or indirect interest in, or be employed by, any vendor while
serving as a DOR employe performing any duty related to the state lottery or as the
executive assistant or as secretary or deputy secretary of revenue or for 2 years
following the person's termination of service.
2. Have a direct or indirect interest in or be employed by a business which has
entered into a lottery retailer contract.
3. Accept or agree to accept money or any other thing of value from any vendor,
retailer or person who has submitted a bid, proposal or application to be a lottery
vendor or lottery retailer.
In addition, no DOR employe who performs any duty related to the state lottery
or the executive assistant or the secretary or deputy secretary of revenue and no
member of such a person's immediate family may purchase a lottery ticket or lottery
share.
This bill narrows the application of these restrictions from applying to all DOR
employes who perform any duty related to the state lottery to only employes in the
lottery division of DOR.
This bill creates 4.5 FTE positions for, and makes an appropriation to, DOR for
the administration of the rental vehicle fee.
Under the international fuel tax agreement (IFTA), to which this state is a
party, every person who drives a larger motor truck into this state using motor fuel
purchased outside this state pays the Wisconsin motor vehicle fuel tax and the oil
inspection fee by purchasing in this state motor vehicle fuel in an amount that is
equivalent to the gallonage consumed while driving the truck in this state, or by
remitting the tax and fee directly to the department of transportation (DOT) or to
another jurisdiction that is a party to IFTA. 1997 Wisconsin Act 27, the biennial state
budget act, increased the motor vehicle fuel tax rate.
This bill requires DOT to recalculate the amount of motor vehicle fuel tax
payable under IFTA for the 4th quarter of 1997 to reflect the midquarter increase to
this state's motor vehicle fuel tax rate.

The rate of taxation under current law, for taxable years beginning before
January 1, 1998, for the lowest income tax bracket for single individuals, certain
fiduciaries, heads of households and married persons is 4.9% of taxable income, the
rate for the middle bracket is 6.55% and the rate for the highest bracket is 6.93%.
For taxable years beginning after December 31, 1997, current law lowers the
rate of taxation for all brackets by 1.0%. Therefore, for taxable years beginning after
December 31, 1997, the rate of taxation under current law for the lowest bracket for
single individuals, certain fiduciaries, heads of households and married persons is
4.85% of taxable income, the rate for the middle bracket is 6.48% and the rate for the
highest bracket is 6.87%.
For taxable years beginning after December 31, 1998, current law also indexes
for inflation the maximum dollar amount in each tax bracket and the corresponding
minimum dollar amount in the next bracket, and the dollar amounts of the standard
deduction that may be claimed by individual income tax payers.
Current law also prohibits DOR from adjusting the withholding tables to reflect
the changes in rates of taxation for any taxable year that begins before January 1,
2000. This bill prohibits DOR from adjusting the withholding tables to reflect the
changes in dollar amounts because of tax bracket and standard deduction indexing
for any taxable year that begins before January 1, 2000.
This bill also makes a technical change in the calculation of the income tax
liability of nonresident and part-year resident individuals. Under current law, one
of the 2 formulas used to calculate the tax liability of nonresident and part-year
resident individuals applies to taxable years beginning after December 31, 1996, and
ending before January 1, 1998. The other formula use to calculate their tax liability
applies to taxable years beginning after December 31, 1997. This bill changes the
applicability of the first formula such that it applies to taxable years beginning after
December 31, 1996, and before January 1, 1998.
Transportation
Under current law, DOT may issue annual and consecutive month permits for
overweight vehicles and combinations of vehicles that are transporting bulk potatoes
from storage facilities to food processing facilities. A permit does not authorize the
operation of a vehicle or vehicle combination at a maximum gross weight of more
than 90,000 pounds. A permit is valid on designated portions of USH 51 and I 39 that
are part of the national system of interstate and defense highways.
This bill provides that any annual or consecutive month permit DOT issues for
an overweight vehicle or vehicle combination that is transporting bulk potatoes from
storage facilities to food processing facilities is not valid on any part of the national
system of interstate and defense highways, except to the extent permitted by federal
law without any loss or reduction of federal aid or other sanction.
Under current law, DOT may authorize the erection of specific information
signs on designated highways. The signs indicate that certain businesses located
near a highway are available to provide gas, food, lodging or camping to motorists.
1997 Wisconsin Act 27, the biennial budget act, designated STH 172 from I 43

southeast of Green Bay to STH 54 west of Ashwaubenon as a highway on which DOT
may authorize the erection of specific information signs.
This bill repeals the designation of STH 172 from I 43 southeast of Green Bay
to STH 54 west of Ashwaubenon as a highway on which DOT may authorize the
erection of specific information signs.
Other
This bill clarifies that the salary-setting authority of the University of
Wisconsin board of regents is subject to general salary-setting provisions affecting
all boards, commissions and elective and appointive state officials. The bill does not
affect the authority of the University of Wisconsin board of regents to adjust salaries
for incumbents of certain positions in an amount different from that provided in the
compensation plan if the adjustment is for the purpose of correcting a salary inequity
or recognizing competitive factors.
1997 Wisconsin Act 27 created a reserve "Class B" license, which authorizes the
sale of intoxicating liquor to be consumed on the premises where sold, and
established a quota on the number of these licenses which a municipality may issue.
This bill corrects cross-references relating to a municipal clerk's duty to record
certain information required for determining the municipality's quota of reserve
"Class B" licenses.
The bill also clarifies that a fee that is payable only upon the initial issuance
of a "Class B" license is not an "annual" fee.
The budget bill, 1997 Wisconsin Act 27, abolishes the state emergency response
board effective July 1, 1998, and gives that board's former responsibilities to the
division of emergency management in the department of military affairs. Under
current law, the state emergency response board is required to notify the joint
committee on finance before entering into any agreements with regional emergency
response teams related to emergency responses to level A releases, those releases
that require the highest level of protection for the responders. This bill transfers that
requirement to the division of emergency management in the department of military
affairs.
Under current law, the department of corrections (DOC) assesses supervision
fees to persons who are on probation. If a person on probation fails to pay supervision
fees assessed by DOC, the court that placed the person on probation may, after a
hearing, extend a probationer's period of probation, modify the terms and conditions
of probation or revoke the person's probation. In addition, if the court does not extend
the period of probation, a court's finding that the person owes supervision fees can
be entered as a civil judgment against the person, which DOC can use to collect the
unpaid fees. Finally, DOC may seek revocation of a person's probation using the
administrative revocation process if the person fails to pay supervision fees.

This bill eliminates the courts' authority to revoke a person's probation for
failing to pay supervision fees. The bill does not affect the authority of DOC to seek
revocation of probation using the administrative revocation process.
For further information see the state and local fiscal estimate, 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:
AB606, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
AB606, s. 2 3Section 2. 20.285 (1) (rc) of the statutes, as created by 1997 Wisconsin Act 27,
4is amended to read:
AB606,15,75 20.285 (1) (rc) Environmental education; forestry. From the conservation fund,
6the amounts in the schedule for environmental education grants related to forestry
7under s. 36.54 (2) and to administer such grants.
AB606, s. 3 8Section 3. 20.566 (1) (b) of the statutes is created to read:
AB606,15,109 20.566 (1) (b) Administration of rental vehicle fee. The amounts in the schedule
10for the administration of the rental vehicle fee under subch. XI of ch. 77.
AB606, s. 4 11Section 4. 20.923 (1) of the statutes, as affected by 1997 Wisconsin Act 27, is
12amended to read:
AB606,16,14
120.923 (1) Establishment of executive salary groups. To this end, a
2compensation plan consisting of 10 executive salary groups is established in
3schedule one of the state compensation plan for the classified service from ranges 18
4through 27. No salary range established above salary range 23 may be utilized in the
5establishment and compensation of positions in the classified service without
6specific approval of the joint committee on employment relations. The dollar value
7of the salary range minimum and maximum for each executive salary group shall be
8reviewed and established in the same manner as that provided for positions in the
9classified service under s. 230.12 (3). The salary-setting authority of individual
10boards, commissions, elective and appointive officials elsewhere provided by law is
11subject to and limited by this section, and the salary rate for these positions upon
12appointment and subsequent thereto shall be set by the appointing authority
13pursuant to this section, except as provided in s. 36.09 (1) (j) and as otherwise
14required by article IV, section 26, of the constitution.
AB606, s. 5 15Section 5. 29.50 (1) (e) of the statutes, as affected by 1997 Wisconsin Act 27,
16is amended to read:
AB606,16,1717 29.50 (1) (e) The transportation and sale of farm-raised fish.
AB606, s. 6 18Section 6. 36.54 (2) (f) of the statutes is created to read:
AB606,16,2119 36.54 (2) (f) The environmental education board may use up to 5% of the
20amount appropriated under s. 20.285 (1) (rc) to administer the grants under this
21subsection that are related to forestry.
AB606, s. 7 22Section 7. 44.72 (4) (b) of the statutes, as created by 1997 Wisconsin Act 27,
23is amended to read:
AB606,17,824 44.72 (4) (b) Subsidized loan applications, terms and conditions. The board
25shall establish application procedures for, and the terms and conditions of,

1subsidized loans under this subsection. The terms may include provision of
2professional building construction services under s. 16.85 (15). The board shall
3determine the interest rate on these loans. The interest rate shall be as low as
4possible but shall be sufficient to fully pay all interest expenses incurred by the state
5and to provide reserves that are reasonably expected to be required in the judgment
6of the board to ensure against losses arising from delinquency and default in the
7repayment of subsidized loans. The term of a subsidized loan under this subsection
8may not exceed 10 years.
AB606, s. 8 9Section 8. 44.72 (4) (d) of the statutes, as created by 1997 Wisconsin Act 27,
10is amended to read:
AB606,17,1511 44.72 (4) (d) Funding for subsidized loans. The board, with the approval of the
12governor and subject to the limits of s. 20.866 (2) (zc) and (zcm), may request that the
13building commission contract public debt in accordance with ch. 18 to fund loans
14under this subsection. The term of public debt contracted under s. 20.866 (2) (zc) and
15(zcm) may not exceed 10 years.
AB606, s. 9 16Section 9. 46.81 (2) of the statutes is amended to read:
AB606,17,2117 46.81 (2) From the appropriation under s. 20.435 (7) (dj), the department shall
18allocate $1,224,000 $2,298,400 in each fiscal year to aging units to provide benefit
19specialist services for older individuals. The department shall ensure that each
20aging unit receives funds and shall take into account the proportion of the state's
21population of low-income older individuals who reside in a county.
AB606, s. 10 22Section 10. 46.81 (5) of the statutes is amended to read:
AB606,18,223 46.81 (5) From the appropriation under s. 20.435 (7) (dj) the department shall
24allocate $132,500 $182,500 in each fiscal year to area agencies on aging. Each area

1agency on aging shall use the funds for training, supervision and legal back-up
2services for benefit specialists within its area.
AB606, s. 11 3Section 11. 48.561 (3) (a) of the statutes, as created by 1997 Wisconsin Act 27,
4is amended to read:
AB606,18,75 48.561 (3) (a) A county having a population of 500,000 or more shall contribute
6$31,280,700 $30,489,200 in state fiscal year 1997 -- 98 for the provision of child
7welfare services in that county by the department.
AB606, s. 12 8Section 12. 48.561 (3) (a) of the statutes, as affected by 1997 Wisconsin Act 27,
9section 1600d, and 1997 Wisconsin Act .... (this act), is repealed and recreated to read:
AB606,18,1210 48.561 (3) (a) A county having a population of 500,000 or more shall contribute
11$60,978,400 in each state fiscal year for the provision of child welfare services in that
12county by the department.
AB606, s. 13 13Section 13. 48.57 (3p) (d) of the statutes, as affected by 1997 Wisconsin Act
1427
, is amended to read:
AB606,19,215 48.57 (3p) (d) If the person being investigated under par. (b) or (c) is a
16nonresident, or at any time within the 5 years preceding the date of the application
17has been a nonresident, or if the county department or, in a county having a
18population of 500,000 or more, the department of health and family services
19determines that the person's employment, licensing or state court records provide a
20reasonable basis for further investigation, the county department or department of
21health and family services shall require the person to be photographed and
22fingerprinted on 2 fingerprint cards, each bearing a complete set of the person's
23fingerprints. The department of justice may provide for the submission of the
24fingerprint cards to the federal bureau of investigation for the purposes of verifying

1the identity of the person fingerprinted and obtaining records of his or her criminal
2arrest and conviction.
AB606, s. 14 3Section 14. 48.685 (1) (a) of the statutes, as created by 1997 Wisconsin Act 27,
4is amended to read:
AB606,19,65 48.685 (1) (a) "Client" means a child who receives direct care or treatment
6services from an entity.
AB606, s. 15 7Section 15. 48.685 (2) (am) (intro.) of the statutes, as created by 1997
8Wisconsin Act 27
, is amended to read:
AB606,19,129 48.685 (2) (am) (intro.) Subject to subd. 5. and par. (bd), the department, a
10county department or a school board shall obtain all of the following with respect to
11a person specified under par. (a) (intro.) and a person specified under par. (ag) (intro.)
12who is a resident or prospective resident of an entity
:
AB606, s. 16 13Section 16. 48.685 (2) (b) 1. (intro.) of the statutes, as created by 1997
14Wisconsin Act 27
, is amended to read:
AB606,19,1815 48.685 (2) (b) 1. (intro.) Subject to subds. 1. e. , and 2. and 3. par. (bd), every
16entity shall obtain all of the following with respect to a person specified under par.
17(ag) (intro.) who is an employe, prospective employe, contractor or prospective
18contractor of the entity
:
AB606, s. 17 19Section 17. 48.685 (2) (b) 3. of the statutes, as created by 1997 Wisconsin Act
2027
, is renumbered 48.685 (2) (bd) and amended to read:
AB606,20,221 48.685 (2) (bd) Subdivision 1. does Paragraphs (am) and (b) 1. do not apply with
22respect to a person under 18 years of age whose background information form under
23sub. (6) (am) indicates that the person is not ineligible to be employed, contracted
24with or permitted to reside at the entity for a reason specified in par. (ag) 1. to 5. and
25with respect to whom the entity otherwise has no reason to believe that the person

1is ineligible to be employed, contracted with or permitted to reside at the entity for
2any of those reasons.
AB606, s. 18 3Section 18. 48.685 (2) (bg) of the statutes, as created by 1997 Wisconsin Act
427
, is amended to read:
AB606,20,165 48.685 (2) (bg) If an entity takes an action specified in par. (ag) (intro.) with
6respect to a person an employe, prospective employe, contractor or prospective
7contractor
for whom, within the last 4 years, the information required under par. (b)
81. a. to c. and e. has already been obtained, either by another entity or by a temporary
9employment agency, the entity may obtain the information required under par. (b)
101. a. to c. and e. from that other entity or temporary employment agency, which shall
11provide the information, if possible, to the entity. If an entity cannot obtain the
12information required under par. (b) 1. a. to c. and e. from another entity or from a
13temporary employment agency or if an entity has reasonable grounds to believe that
14any information obtained from another entity or from a temporary employment
15agency is no longer accurate
, the entity shall obtain that information from the
16sources specified in par. (b) 1. a. to c. and e.
AB606, s. 19 17Section 19. 48.685 (2) (c) of the statutes, as created by 1997 Wisconsin Act 27,
18is amended to read:
AB606,20,2519 48.685 (2) (c) If the background information form completed by a person under
20sub. (6) (am) indicates that the person is not ineligible to be employed, contracted
21with or permitted to reside at an entity for a reason specified in par. (ag) 1. to 5., an
22entity may employ or contract with the person or permit the person to reside at the
23entity for not more than 60 days pending the receipt of the information sought under
24par. (am) or (b) 1. An entity shall provide supervision for a person who is employed,
25contracted with or permitted to reside as permitted under this paragraph.
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