AB606: Bill Text

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 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB606, s. 2 Section 2. 20.285 (1) (rc) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB606,15,7 20.285 (1) (rc) Environmental education; forestry. From the conservation fund, the amounts in the schedule for environmental education grants related to forestry under s. 36.54 (2) and to administer such grants.

AB606, s. 3 Section 3. 20.566 (1) (b) of the statutes is created to read:

AB606,15,10 20.566 (1) (b) Administration of rental vehicle fee. The amounts in the schedule for the administration of the rental vehicle fee under subch. XI of ch. 77.

AB606, s. 4 Section 4. 20.923 (1) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB606,16,14 20.923 (1) Establishment of executive salary groups. To this end, a compensation plan consisting of 10 executive salary groups is established in schedule one of the state compensation plan for the classified service from ranges 18 through 27. No salary range established above salary range 23 may be utilized in the establishment and compensation of positions in the classified service without specific approval of the joint committee on employment relations. The dollar value of the salary range minimum and maximum for each executive salary group shall be reviewed and established in the same manner as that provided for positions in the classified service under s. 230.12 (3). The salary-setting authority of individual boards, commissions, elective and appointive officials elsewhere provided by law is subject to and limited by this section, and the salary rate for these positions upon appointment and subsequent thereto shall be set by the appointing authority pursuant to this section, except as provided in s. 36.09 (1) (j) and as otherwise required by article IV, section 26, of the constitution.

AB606, s. 5 Section 5. 29.50 (1) (e) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB606,16,17 29.50 (1) (e) The transportation and sale of farm-raised fish.

AB606, s. 6 Section 6. 36.54 (2) (f) of the statutes is created to read:

AB606,16,21 36.54 (2) (f) The environmental education board may use up to 5% of the amount appropriated under s. 20.285 (1) (rc) to administer the grants under this subsection that are related to forestry.

AB606, s. 7 Section 7. 44.72 (4) (b) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB606,17,8 44.72 (4) (b) Subsidized loan applications, terms and conditions. The board shall establish application procedures for, and the terms and conditions of, subsidized loans under this subsection. The terms may include provision of professional building construction services under s. 16.85 (15). The board shall determine the interest rate on these loans. The interest rate shall be as low as possible but shall be sufficient to fully pay all interest expenses incurred by the state and to provide reserves that are reasonably expected to be required in the judgment of the board to ensure against losses arising from delinquency and default in the repayment of subsidized loans. The term of a subsidized loan under this subsection may not exceed 10 years.

AB606, s. 8 Section 8. 44.72 (4) (d) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB606,17,15 44.72 (4) (d) Funding for subsidized loans. The board, with the approval of the governor and subject to the limits of s. 20.866 (2) (zc) and (zcm), may request that the building commission contract public debt in accordance with ch. 18 to fund loans under this subsection. The term of public debt contracted under s. 20.866 (2) (zc) and (zcm) may not exceed 10 years.

AB606, s. 9 Section 9. 46.81 (2) of the statutes is amended to read:

AB606,17,21 46.81 (2) From the appropriation under s. 20.435 (7) (dj), the department shall allocate $1,224,000 $2,298,400 in each fiscal year to aging units to provide benefit specialist services for older individuals. The department shall ensure that each aging unit receives funds and shall take into account the proportion of the state's population of low-income older individuals who reside in a county.

AB606, s. 10 Section 10. 46.81 (5) of the statutes is amended to read:

AB606,18,2 46.81 (5) From the appropriation under s. 20.435 (7) (dj) the department shall allocate $132,500 $182,500 in each fiscal year to area agencies on aging. Each area agency on aging shall use the funds for training, supervision and legal back-up services for benefit specialists within its area.

AB606, s. 11 Section 11. 48.561 (3) (a) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB606,18,7 48.561 (3) (a) A county having a population of 500,000 or more shall contribute $31,280,700 $30,489,200 in state fiscal year 1997 -- 98 for the provision of child welfare services in that county by the department.

AB606, s. 12 Section 12. 48.561 (3) (a) of the statutes, as affected by 1997 Wisconsin Act 27, section 1600d, and 1997 Wisconsin Act .... (this act), is repealed and recreated to read:

AB606,18,12 48.561 (3) (a) A county having a population of 500,000 or more shall contribute $60,978,400 in each state fiscal year for the provision of child welfare services in that county by the department.

AB606, s. 13 Section 13. 48.57 (3p) (d) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB606,19,2 48.57 (3p) (d) If the person being investigated under par. (b) or (c) is a nonresident, or at any time within the 5 years preceding the date of the application has been a nonresident, or if the county department or, in a county having a population of 500,000 or more, the department of health and family services determines that the person's employment, licensing or state court records provide a reasonable basis for further investigation, the county department or department of health and family services shall require the person to be photographed and fingerprinted on 2 fingerprint cards, each bearing a complete set of the person's fingerprints. The department of justice may provide for the submission of the fingerprint cards to the federal bureau of investigation for the purposes of verifying the identity of the person fingerprinted and obtaining records of his or her criminal arrest and conviction.

AB606, s. 14 Section 14. 48.685 (1) (a) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB606,19,6 48.685 (1) (a) "Client" means a child who receives direct care or treatment services from an entity.

AB606, s. 15 Section 15. 48.685 (2) (am) (intro.) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB606,19,12 48.685 (2) (am) (intro.) Subject to subd. 5. and par. (bd), the department, a county department or a school board shall obtain all of the following with respect to a person specified under par. (a) (intro.) and a person specified under par. (ag) (intro.) who is a resident or prospective resident of an entity:

AB606, s. 16 Section 16. 48.685 (2) (b) 1. (intro.) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB606,19,18 48.685 (2) (b) 1. (intro.) Subject to subds. 1. e. , and 2. and 3. par. (bd), every entity shall obtain all of the following with respect to a person specified under par. (ag) (intro.) who is an employe, prospective employe, contractor or prospective contractor of the entity:

AB606, s. 17 Section 17. 48.685 (2) (b) 3. of the statutes, as created by 1997 Wisconsin Act 27, is renumbered 48.685 (2) (bd) and amended to read:

AB606,20,2 48.685 (2) (bd) Subdivision 1. does Paragraphs (am) and (b) 1. do not apply with respect to a person under 18 years of age whose background information form under sub. (6) (am) indicates that the person is not ineligible to be employed, contracted with or permitted to reside at the entity for a reason specified in par. (ag) 1. to 5. and with respect to whom the entity otherwise has no reason to believe that the person is ineligible to be employed, contracted with or permitted to reside at the entity for any of those reasons.

AB606, s. 18 Section 18. 48.685 (2) (bg) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB606,20,16 48.685 (2) (bg) If an entity takes an action specified in par. (ag) (intro.) with respect to a person an employe, prospective employe, contractor or prospective contractor for whom, within the last 4 years, the information required under par. (b) 1. a. to c. and e. has already been obtained, either by another entity or by a temporary employment agency, the entity may obtain the information required under par. (b) 1. a. to c. and e. from that other entity or temporary employment agency, which shall provide the information, if possible, to the entity. If an entity cannot obtain the information required under par. (b) 1. a. to c. and e. from another entity or from a temporary employment agency or if an entity has reasonable grounds to believe that any information obtained from another entity or from a temporary employment agency is no longer accurate, the entity shall obtain that information from the sources specified in par. (b) 1. a. to c. and e.

AB606, s. 19 Section 19. 48.685 (2) (c) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB606,20,25 48.685 (2) (c) If the background information form completed by a person under sub. (6) (am) indicates that the person is not ineligible to be employed, contracted with or permitted to reside at an entity for a reason specified in par. (ag) 1. to 5., an entity may employ or contract with the person or permit the person to reside at the entity for not more than 60 days pending the receipt of the information sought under par. (am) or (b) 1. An entity shall provide supervision for a person who is employed, contracted with or permitted to reside as permitted under this paragraph.

AB606, s. 20 Section 20. 48.685 (3) (a) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB606,21,8 48.685 (3) (a) Every 4 years or at any time within that period that the department, a county department or a school board considers appropriate, the department, county department or school board shall request the information specified in sub. (2) (am) 1. to 5. for all persons who are licensed, certified or contracted to operate an entity and for all persons specified in par. (ag) (intro.) who are residents of an entity.

AB606, s. 21 Section 21. 48.685 (3) (b) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read: