Natural resources
Recreation
With limited exceptions, beginning on May 1, 1998, snowmobile trail use
stickers issued by the department of natural resources (DNR) are required on all
snowmobiles that are operated in this state but not registered in this state. This bill
raises the base fee and creates an additional issuing fee for the sticker. Under the
bill, DNR may appoint agents, including county clerks, to issue these stickers, and
the agents may retain the issuing fees to compensate them for providing this service.
The bill also establishes a temporary procedure for issuing these stickers during the
first year in which the stickers are required. This temporary procedure requires that
all county clerks issue these stickers.
Other natural resources
This bill permits DNR to expend moneys received from other state agencies for
car, truck, airplane, heavy equipment, information technology or radio pools for the
operation, maintenance, replacement and purchase of vehicles, equipment and
information technology.
Retirement and group insurance
Under current law, the benefits payable under the Wisconsin retirement
system (WRS) and the contributions permitted under the WRS are subject to the
applicable limitations specified in the Internal Revenue Code for 1996. This bill
provides that the benefits payable under the WRS and the contributions permitted
under the WRS are subject to the applicable limitations specified in the Internal
Revenue Code, without respect to the year.
STATE GOVERNMENT
State building program
Under current law, state contracts for at least $2,500, and local contracts for at
least $500, that pertain to public improvements or public works are required to
contain a provision requiring the prime contractor to pay all claims for labor
performed and materials furnished, used or consumed in making the public
improvement or performing the public work. If a contract is for $10,000 or more, the
contract must include a provision requiring the prime contractor to provide a bond
for performance of the contract and the payment of these claims. This bonding
requirement may be waived if the contract meets certain written standards for a
waiver. The written standards are established by the department of administration
(DOA) for most state contracts, by the department of natural resources (DNR) for
certain types of hazardous substance spill response or environmental repair
contracts, and by the appropriate local governmental entity for local governmental
public works projects.
This bill establishes new requirements regarding payment and performance
assurances for public contracts. Under the bill, there are no payment and
performance assurance requirements for state or local contracts under $10,000. For
a state contract between $10,000 and $100,000 and for a local contract between
$10,000 and $50,000, the contract must contain a provision allowing the
governmental body to make payments under the contract directly to subcontractors
or with checks that are made payable to the prime contractor and to one or more
subcontractors. The governmental body must also establish written criteria for
contracts in this price range to determine whether a contract requires payment or
performance assurances and, if so, what payment or performance assurances are
required. For a state contract between $100,000 and $250,000 and for a local contract
between $50,000 and $100,000, the contract must require the prime contractor to
obtain a payment and performance bond, unless DOA, in the case of a state contract,
or the local government body authorized to enter into the contract, in the case of
another public contract, allows the prime contractor to substitute a different
payment and performance assurance. DOA or the local body may permit the
substitution of different payment and performance assurance only after a contract
has been awarded and only if the substituted payment and performance assurance
is for an amount at least equal to the contract price and is in the form of a bond, an
irrevocable letter of credit, an escrow account or other type of instrument. A contract
in this price range must also include a provision allowing the governmental body to
make payments under the contract directly to subcontractors or with checks that are
made payable to the prime contractor and to one or more subcontractors. Finally, the
bill requires payment and performance bonds for state contracts in excess of
$250,000 and for local contracts in excess of $100,000. No waiver of this bonding
requirement is permitted under the bill. All of the dollar thresholds in the bill are
indexed biennially to reflect changes in construction costs, except that the amounts
are not adjusted if the amount of the adjustment would be less than 5%.
State finance
Under current law, all appropriations, special accounts and fund balances
within the general fund or any segregated fund may be made temporarily available
for the purpose of allowing encumbrances or financing expenditures of other general
or segregated fund activities which do not have sufficient moneys in the accounts
from which they are financed but have accounts receivable balances or moneys
anticipated to be received. Current law limits the total amount of any of these
temporary reallocations, referred to as interfund borrowing, to $400,000,000. This
bill amends the limitations on interfund borrowing so that the existing $400,000,000
limit applies only to reallocations to a fund other than the general fund. Under the
bill, temporary reallocations to the general fund at any time in a fiscal year may not
exceed 5% of total general purpose revenue appropriations, as calculated by the
secretary of administration as of that time and for that fiscal year. As under current
law, the bill's interfund borrowing limitations do not apply to reallocations from the
budget stabilization fund to the general fund.
Under current law, the first $20,000,000 in general fund balances in the
1997-99 fiscal biennium that were not included in the official general fund summary
published with the 1997-99 biennial budget act is allocated to funding unfunded
employe compensation increases. The next $175,000,000 in additional general fund
balances in the 1997-99 fiscal biennium is allocated to decreasing the amount of the
school aid payments that are delayed until July of the following school year.
This bill reduces the amount that is allocated to reducing the delayed school aid
payments to $111,000,000.
Other state government
Under current law, DNR awards to eligible municipalities, private companies
and nonprofit organizations waste reduction and recycling demonstration grants
from the segregated recycling fund. This bill requires DNR annually to award a
$100,000 grant to the Wheelchair Recycling Project, a nonprofit organization, for
refurbishing used wheelchairs and returning them to use by persons who otherwise
would not have access to them. The bill also requires DNR annually to award from
the recycling fund a $500,000 grant to DOC to refurbish and recycle used computers.
The grants are paid from the moneys available for waste reduction and recycling
demonstration grants.
This bill permits the governor to expend not more than $45,000 in fiscal year
1998-99 for a child's first book initiative under which a state agency contracted with
by the governor must send children's books to the parents of newborn children.
Taxation
Income taxation
This bill creates a refundable individual income tax credit for amounts spent
by a claimant for the claimant's dependent child on eligible educational expenses at
public schools, certain private schools and home-based educational programs,
grades kindergarten through 12. Under the bill, "educational expenses" include
amounts that are spent for tutoring, summer courses, transportation costs paid to
others, nonreligious instructional materials and up to $500 per year for computers
and related educational materials to be used in the claimant's home and not used in
a trade or business.
The maximum credit that may be claimed under the bill by a state resident is
$1,000 per child per year, up to a maximum credit of $2,000 per family per year. A
nonresident or part-year resident of this state is eligible to claim a lesser credit. The
credit may not be claimed by a claimant if, for a married couple filing jointly, his or
her federal adjusted gross income (AGI) exceeds $30,000 to $60,000, depending on
the number of children the claimant has. For a married couple filing separately, the
maximum federal AGI is $15,000 to $30,000, depending on the number of children
the claimant has, and, for a single person or married person filing as head of
household, the maximum federal AGI is $25,000 to $55,000, depending on the
number of children the claimant has.
This individual income tax credit is refundable. If the amount of the credit
exceeds the taxpayer's income tax liability, the difference will be refunded to the
taxpayer by check.
The bill also allows individuals to subtract from their income for tax purposes
amounts paid for "educational expenses", as defined in the credit, for dependent
children who attend kindergarten through grade 12 at the same types of schools and
programs as authorized under the tax credit.
The maximum amount of the deduction is $1,500 per child per year, and may
not be claimed for any amount for which a claim is made under the education tax
credit that is created in the bill. Also under the bill, the amount of the deduction
which a claimant may claim phases down to zero as a claimant's income rises. For
a married claimant who files a joint return, the credit phases out as federal AGI
increases from more than $80,000 to not more than $100,000; for a married claimant
who files a separate return, the credit phases out as federal AGI increases from more
than $40,000 to not more than $50,000; and for a single filer or married person filing
as head of household, the credit phases out as federal AGI increases from more than
$50,000 to not more than $60,000.
The bill also creates a higher education individual income tax deduction for
amounts paid for tuition to attend any university, college, technical college or
proprietary school, all of which must be located in Wisconsin, or for tuition to attend
a public vocational school or public institution of higher education in Minnesota
under the state tuition reciprocity program. The maximum amount of the deduction
is $3,000 per student per year, and may be claimed for tuition expenses of the
claimant or of the claimant's child. The maximum amount of the deduction phases
down to zero as the claimant's income rises in the same manner as the "K-12"
deduction.
Under current law, federal income tax laws that were enacted during 1997 and
that took effect before January 1, 1998, apply for Wisconsin income tax purposes at
the same time that they apply for federal purposes. This bill adopts for Wisconsin
purposes the parts of those acts that take effect on or after January 1, 1998. The bill
makes one exception; the deduction for interest on qualified education loans is
limited to interest paid while the taxpayer is a Wisconsin resident.
The bill also allows taxpayers, for taxable years that begin on or after January
1, 1998, to compute their deductions for depreciation under either the Internal
Revenue Code in effect for the year that the return is filed or the Internal Revenue
Code as amended to December 31, 1997. Under current law, for property placed in
service in 1997, taxpayers do not have an option to use federal changes made late in
1997.
Property Taxation
This bill exempts computers and related property from the property tax,
beginning with the assessment as of January 1, 1999. The bill also creates a payment
to municipalities, counties, school districts and technical college districts that is
based in part of the value of the exempt computers and related property in each
jurisdiction and that is first paid in the year 2000. On or before June 30, 1999,
$64,000,000 is transferred to the computer escrow fund, which is created by the bill,
to be used for the payments in the year 2000.
Other taxation
This bill creates a tax amnesty program that runs from June 15, 1998, to August
14, 1998. Under the program, persons who fulfill certain requirements are relieved
of some of their financial obligations to this state. The bill also increases the
department of revenue's (DOR's) capacity to collect delinquent taxes. Among the
means to do so are establishing a collection fee for persons who fail to take advantage
of the amnesty programs, expanding the state's authority to subtract delinquent
taxes owed from its payments to vendors, allowing DOR to require instalment
payments to be made by electronic funds transfer and imposing penalties on late
payments of withheld taxes.
Currently, a recipient of public assistance has a right to confidentiality of
records and files on the recipient, although the existence of that right does not
prohibit the use of those records and files for auditing or accounting purposes. This
bill allows the department of workforce development (DWD) to use information
obtained from public assistance recipients for purposes related to the collection of
delinquent state taxes.
The bill also allows DWD and county child support agencies to release to DOR
information obtained under child and spousal support and establishment of
paternity and medical liability support programs for purposes related to the
collection of delinquent state taxes. Under current law, information obtained under
DWD's program may only be disclosed in the administration of that program, as well
as other specified support-related programs.
Under current law, certain records relating to worker's compensation
maintained by DWD are confidential and may not be disclosed under the open
records law. Those records include records that reveal the identity of an employe who
claims worker's compensation benefits and records that contain any financial
information provided to DWD by a self-insured employer. Those records may,
however, be disclosed to the employe or self-insured employer that is the subject of
the record or to an insurance carrier or employer that is a party to the employe's
worker's compensation claim and may be disclosed on the order of a court of
competent jurisdiction in this state. This bill permits worker's compensation records
that are otherwise confidential and not subject to disclosure under the open records
law to be disclosed to DOR for purposes related to the collection of delinquent taxes.
Finally, the department of corrections (DOC) currently maintains information
concerning persons who are in the custody of DOC because they have been either
sentenced to imprisonment in the state prisons or placed on probation. DOC also
maintains a registry of persons required to register as sex offenders. The sex
offender registry contains identifying information about the offender as well as such
information as where the offender lives, works or attends school. The records
containing information concerning persons in DOC custody are generally open to
public inspection unless there is a clear statutory exception to public inspection, a
common law limitation on inspection or an overriding public interest in keeping the
record confidential. Current law provides a limit to public inspection of the
information in the sex offender registry by specifying that the information is
generally confidential, although DOC or other state agencies that have custody or
control of a sex offender may release certain information from the registry to certain
persons, including local law enforcement agencies, certain community organizations
and the general public.
This bill allows DOC to release to DOR any information that DOC has
concerning a person who is in the custody of DOC and any information in the sex
offender registry concerning a person who is required to register as a sex offender.
Under current law, when a person applies to the department of regulation and
licensing (DORL) to renew a credential to practice a profession or occupation that
was initially issued by DORL or an attached examining board or affiliated
credentialing board, the person must provide his or her social security number or, if
the person is an entity such as a corporation, its federal employer identification
number. DORL must deny an application if a person fails to do so. In addition, before
renewing the credential, DORL must request DOR to certify whether 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 and notify the person
that the person has 30 days to request a hearing before DOR to review the
certification. A hearing is limited to questions of mistaken identity and payment of
the delinquent taxes. If DOR affirms its certification after a hearing, DOR must
notify DORL, which must affirm its denial of the application. A person may seek
judicial review of DORL's affirmation of its denial 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 licensing boards and agencies: DORL; a board in DORL; the department
of agriculture, trade and consumer protection; the department of commerce; the
ethics board; the department of financial institutions; the department of health and
family services; the department of natural resources; the department of public
instruction; the office of the commissioner of insurance; and the department of
transportation. The bill also expands these provisions to cover property assessor
certifications and recertifications made by DOR. For a license granted by a board in
DORL, DORL, rather than the board, carries out the duties of a licensing agency that
are described below.
Under the bill, a person who applies for a license, for renewal or continuation
of a license or for certification or recertification as a property assessor must provide
his or her social security number or, if applicable, its federal employer identification
number to the applicable licensing agency or, for a property assessor, to DOR. If a
person does not do so, the licensing agency or DOR must deny the application. A
licensing agency's denial or revocation is subject to administrative review by the
licensing agency and to judicial review in the same way as are other decisions by the
agency. The bill also requires a licensing agency to request DOR to certify whether
an applicant for a license is liable for delinquent taxes. In addition, each licensing
agency (except a board that is attached to DORL) must enter into a memorandum
of understanding with DOR that requires the licensing agency to request that DOR
certify whether a person who holds a license is liable for delinquent taxes. (DORL
is required to make such a request on behalf of a board that is attached to DORL.)
If DOR certifies a liability for delinquent taxes, the licensing agency must either
deny the application for issuance, renewal or continuation of the license or revoke the
license. In addition, under the bill, DOR may deny an application for property
assessor certification or recertification or revoke such a certification if DOR
determines that the applicant or holder of the certification is liable for delinquent
taxes.
The bill also provides that a person whose application is denied or whose license
or property assessor certification is revoked for tax delinquency has 30 days to
request a hearing before DOR to review the certification or, for a property assessor,
determination of liability for delinquent taxes. A hearing is limited to questions of
mistaken identity and payment of the delinquent taxes. After a hearing, if DOR
determines that a person is not liable for delinquent taxes, the licensing agency or,
for a property assessor, DOR must grant the application or reinstate the license or
property assessor certification, unless there are other grounds for denying the
application or revoking the license or property assessor certification. If DOR affirms
its certification of liability after a hearing, DOR must provide notice of its affirmation
to the licensing agency, which, upon receiving the notice, must affirm its denial or
revocation. For a property assessor, DOR must notify the applicant or certification
holder that it has affirmed its determination of liability. A person may seek judicial
review of a licensing agency's affirmation of its denial or revocation or, for a property
assessor, DOR's affirmation of its determination in Dane County Circuit Court.
In addition, the bill prohibits a licensing agency from issuing a license to a
person whose application was previously denied or whose license was previously
revoked for tax delinquency unless the person submits a certificate issued by DOR
that states that the person is not liable for delinquent taxes.
Finally, if the supreme court agrees, the bill's requirements and procedures also
apply to licenses to practice law.
Transportation
Under current law, the department of transportation (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 authorizes the operation of a vehicle or vehicle combination at
a maximum gross weight of not 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 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 administers a transportation infrastructure loan
program, under which DOT makes loans to local governments and other specified
entities for highway projects or transit capital improvement projects. The loans are
made from the segregated transportation infrastructure loan fund. That segregated
fund is capitalized with federal moneys and state moneys in matching amounts
required by the federal government as a condition of receiving these federal moneys.
Current law generally prohibits DOT from encumbering or expending any moneys
on a project for which a loan is made under the transportation infrastructure loan
program. This bill eliminates this prohibition.
Veterans and military affairs
This bill authorizes the department of military affairs (DMA) to provide
services to disadvantaged youth under a program established by the federal
government. Under the federal program, DMA is required to provide persons aged
16 to 18 who have not completed high school with a 22-week residential program
that includes training to enhance the participants' life skills, employment potential
and ability to obtain a declaration of equivalency of high school education.
Under current law, an eligible veteran may not receive a veteran's home loan
to purchase a home if the price of the home exceeds 2.5 times the median price of a
home in the state. This bill prohibits an eligible veteran from receiving a veteran's
home loan for any eligible purpose, which includes the purchase of a home,
improvements to a home or refinancing of a home loan, if the amount of the loan
exceeds 2.5 times the median price of a home in the state.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
This bill will be referred to the joint survey committee on retirement systems
for a detailed analysis, which will be printed as an appendix to this bill.
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:
AB768, s. 1
1Section
1. 6.875 (1) (a) of the statutes is amended to read:
AB768,40,42
6.875
(1) (a) "Community-based residential facility" has the meaning given in
3s. 50.01 (1g), except that the term does not include a place where fewer than 10
4unrelated adults
who are not related to the operator or administrator reside.
AB768, s. 2
5Section
2. 13.63 (1) of the statutes is amended to read:
AB768,41,76
13.63
(1) Licenses. An application for a license to act as a lobbyist may be
7obtained from and filed with the board.
An applicant shall include his or her social
8security number on the application. The application shall be signed, under the
9penalty for making false statements under s. 13.69 (6m), by the lobbyist. Upon
10approval of the application and payment of the applicable license fee under s. 13.75
11(1) or (1m) to the board, the board shall issue a license which entitles the licensee to
12practice lobbying on behalf of each registered principal who or which has filed an
13authorization under s. 13.65 for that lobbyist and paid the authorization fee under
14s. 13.75 (4). The license shall expire on December 31 of each even-numbered year.
15The board shall not issue a license to an applicant who does not provide his or her
16social security number. The board shall not issue a license to an applicant or shall
17revoke any license issued to a lobbyist if the department of revenue certifies to the
1board that the applicant or lobbyist is liable for delinquent taxes under s. 73.0301. 2No application may be disapproved by the board except an application for a license
3by a person who is ineligible for licensure under
this subsection or s. 13.69 (4) or
an
4application by a lobbyist whose license has been revoked under
this subsection or s.
513.69 (7) and only for the period of such ineligibility or revocation. Denial of a license
6on the basis of a certification by the department of revenue may be reviewed under
7s. 73.0301. Denial of any other license may be reviewed under ch. 227.
AB768, s. 3
8Section
3. 13.64 (1) (a) of the statutes is amended to read:
AB768,41,129
13.64
(1) (a) If the principal is an individual, the name and address of the
10individual's employer, if any, or the individual's principal place of business if
11self-employed,
and a description of the business activity in which the individual or
12the individual's employer is engaged
and the individual's social security number.
AB768, s. 4
13Section
4. 13.64 (2) of the statutes is amended to read:
AB768,41,2314
13.64
(2) The registration shall expire on December 31 of each even-numbered
15year.
The board shall not accept a registration statement filed by an individual who
16does not provide his or her social security number. The board shall not accept a
17registration statement filed by any person or shall terminate the registration of any
18principal if the department of revenue certifies to the board that the person or
19principal is liable for delinquent taxes under s. 73.0301. If all lobbying by or on behalf
20of the principal which is not exempt under s. 13.621 ceases, the board shall terminate
21the principal's registration and any authorizations under s. 13.65 as of the day after
22the principal files a statement of cessation and expense statements under s. 13.68
23for the period covering all dates on which the principal was registered.
AB768, s. 5
24Section
5. 16.24 (3) (a) (intro.), 1. and 2. of the statutes are amended to read:
AB768,42,3
116.24
(3) (a) (intro.)
Except as provided under par. (c), the The department shall
2contract with an individual
, a trust or a legal guardian for the sale of tuition units
3to that individual
, trust or legal guardian if all of the following apply:
AB768,42,44
1. The
individual purchaser pays a $50 nonrefundable enrollment fee.
AB768,42,65
2. The
individual purchaser is purchasing the tuition units on behalf of a
6beneficiary named in the contract.
AB768, s. 6
7Section
6. 16.24 (3) (a) 3. and 4. of the statutes are repealed and recreated to
8read:
AB768,42,109
16.24
(3) (a) 3. When the contract is executed, at least one of the following
10applies:
AB768,42,1111
a. The beneficiary is a resident of this state.