If, within three years of the date of the compromise order, DOR determined that the taxpayer had income or property sufficient to enable the taxpayer to pay the remainder of the tax, costs, penalties and interest, the Department would be required to reopen the matter and order the payment in full of the amount owed. Before entering such an order, DOR would be required to notify the taxpayer in writing of the Department's intention. If the taxpayer requested it, a hearing would be arranged. Once the order was entered, the Department would make a record of the taxes, costs, interest and penalties and they would become immediately due and payable. The taxes would be subject to interest and the delinquent tax fee. DOR would be required to immediately proceed to collect the amounts due and to impose the delinquent tax fee.
These provisions would take effect on the first day of the second month beginning after publication of the bill.
Under current law, DOR has authority to compromise delinquent income and franchise taxes including costs, penalties and interest, under provisions that are essentially the same as those described above. The bill would authorize DOR to compromise all types of taxes (not just income and franchise) that are owed to the state, but not yet delinquent.
[Bill Sections: 1803 and 9443(5)]
27. TAX APPEALS COMMISSION -- SUMMARY PROCEEDINGS
Governor: Replace the current provisions regarding "small claims" cases with similar provisions relating to "summary proceedings." A summary proceeding would be a matter in which the amount in controversy, including any penalty, after DOR takes its final action on the petition for redetermination, is less than $100,000. Exceptions would include cases where: (a) the Commission on its own motion determines that the case should not be heard as a summary proceeding; or (b) DOR or a party petitioning for review alleges that the case involves a constitutional issue or has statewide significance. A commissioner hearing a summary proceeding would have the same discretion as a judge under statutory alternative dispute resolution provisions to order the parties to select a settlement provided under those provisions. A commissioner assigned by the chairperson prior to the hearing would decide summary proceedings. In summary proceedings, the presiding commissioner would render an oral decision at the close of the hearing or a written decision to all parties within two weeks. Decisions in summary proceedings would not be precedents. Provisions governing DOR actions in response to adverse rulings would not apply to summary hearings. The Commission would be required to include a Summary Proceedings Division.
The bill would also provide that, in matters that are not heard as summary proceedings, consent of the parties would no longer be required for the presiding commissioner to render an oral decision. These provisions would first apply to appeals filed for tax years beginning on January 1, 2000.
Under current law, the Tax Appeals Commission is authorized to hear small claims cases. Small claims are matters in which the amount in controversy, including any penalty, after DOR takes final action on the petition for redetermination, is less than $2,500, unless the Commission determines not to hear the case as a small claims case or DOR determines that the case has statewide significance. Small claims cases are decided by one commissioner assigned by the chairperson prior to the hearing. In small claims cases, the presiding commissioner, without consent of the parties, may render either an oral decision at the close of the hearing or a written
decision to all parties within two weeks. Adverse ruling provisions do not apply to small claims cases. The Commission is currently required to include a Small Claims Division.
[Bill Sections: 18, 1791, 1795 thru 1797 and 9343(22)]
28. TAX APPEALS COMMISSION -- PENALTY FOR FRIVOLOUS OR GROUNDLESS APPEALS
Governor: Increase, from $1,000 to $5,000, the penalty that may be assessed for proceedings before the Tax Appeals Commission that are pursued primarily for delay or that are frivolous or groundless. This provision would first apply to appeals filed for tax years beginning on January 1, 2000.
[Bill Sections: 1794 and 9343(22)]
29. TAX APPEALS COMMISSION -- HEARING LOCATIONS
Governor: Provide that Commission hearings must be held in any of the following cities: Appleton, Eau Claire, LaCrosse, Madison, Milwaukee and Wausau. Under current law, the time and place of meetings and hearings of the Commission are designated by the chairperson. This modification would first apply to appeals filed for tax years beginning on January 1, 2000.
[Bill Sections: 1792 and 9343(22)]
ADMINISTRATION
Budget Change Items
General Agency Provisions
1. STANDARD BUDGET ADJUSTMENTS
Funding Positions
GPR $507,500 0.00
FED 29,100 - 1.00
PR - 6,260,200 - 2.00
SEG 81,400 0.00
Total - $5,642,200 - 3.00
Governor: Provide adjustments totaling $250,200 GPR, $12,700 FED, -$3,130,100 PR, and $40,700 SEG in 1999-00 and $257,300 GPR, $16,400 FED, -$3,130,100 PR, and $40,700 SEG in 2000-01 and -3.0 positions (-1.0 FED and -2.0 PR) for: (a) turnover reductions (-$150,900 GPR and -$745,600 PR annually); (b) removal of non-continuing elements from the base (-$35,700 FED and -$4,921,300 PR annually, and -1.0 FED and -2.0 PR positions); (c) full funding of salary and fringe benefit costs ($320,900 GPR, $39,000 FED, $1,818,900 PR, and $39,300 SEG in 1999-00 and $324,900 GPR, $39,000 FED, $1,818,900 PR, and $39,300 SEG in 2000-01); (d) full funding of financial services charges ($4,400 GPR, $30,800 PR, $1,000 SEG annually); (e) reclassifications ($8,000 GPR and $8,400 FED in 1999-00 and $11,100 GPR and $12,100 FED in 2000-01); (f) overtime ($15,500 GPR and $572,300 PR annually); (g) night and weekend differential ($1,400 GPR and $74,400 PR annually); (h) fifth vacation week as cash ($23,300 GPR, $1,000 FED, $40,400 PR and $400 SEG annually); (i) full funding of lease costs ($27,600 GPR annually); and (j) minor transfer within the same appropriation (no net fiscal impact).
2. REQUIRED BASE LEVEL STATE OPERATIONS FUNDING LAPSE
Funding Positions
GPR - $406,000 - 0.20
FED 9,000 0.00
PR 48,400 0.20
Total $348,600 0.00
Governor: Reduce base level funding by $203,000 GPR annually and 0.2 GPR positions to make permanent a 2% annual lapse requirement imposed by 1997 Wisconsin Act 27. Annual reductions are made in the following programs: (a) DOA's general program operations appropriation (-$120,900); (b) special and executive committees appropriation (-$7,300); (c) Women’s Council (-$1,500); (d) Division of Hearings and Appeals (-$30,500); (e) Office of Justice Assistance (-$4,500); (e) Tax Appeals Commission (-$8,300); and (f) Division of Housing (-$30,000).
Also, provide increases of $4,500 FED and $24,200 PR annually and 0.2 PR positions to offset a portion of the required 2% GPR reduction. The increase of $4,500 FED annually would be used by OJA to fund existing staff. The increase of $24,200 PR annually and 0.2 PR positions would offset the reduction to DOA's general program operations GPR appropriation. Revenue for the PR increase comes from charges to other agencies for DOA services.
3. DEBT SERVICE REESTIMATES
GPR $156,800
PR - 4,078,900
Total $3,922,100
Governor: Provide adjustments of $21,700 GPR and -$1,847,600 PR in 1999-00 and $135,100 GPR and -$2,231,300 PR in 2000-01 for debt service costs associated with state office building and other facility construction projects. The changes are for the following:
a. Funding increases ($21,700 GPR in 1999-00 and $135,100 GPR in 2000-01) associated with the principal and interest costs on bonding used for adapting for public use the Black Pointe Estate in Lake Geneva.
b. Funding decreases (-$208,300 PR in 1999-00 and -$204,900 PR in 2000-01) associated with the principal and interest costs for the financing of land acquisition for and construction of parking facilities in Madison. Total debt service for parking facilities would be $1,251,800 PR in 1999-00 and $1,255,200 PR in 2000-01. Funding for the parking facility debt service costs are provided from charges assessed for parking in state-owned parking spaces in Madison.
c. Funding decreases (-$1,639,300 PR in 1999-00 and -$2,026,400 PR in 2000-01) associated with the principal and interest costs for the financing of the acquisition, construction, development, enlargement, or improvement of facilities housing state agencies. Total debt service costs for construction and remodeling costs associated with state office buildings managed by DOA would be $9,509,600 PR in 1999-00 and $9,122,500 PR in 2000-01. Funding for these debt service costs are provided from charges assessed state agencies for renting space in state office buildings.
4. REPEAL OF SEPARATE STATE PROSECUTORS OPERATIONS APPROPRIATION
Governor: Repeal the sum certain GPR appropriation for the State Prosecutor's Office and instead include funding for that Office within the GPR sum certain general program operations appropriation for DOA. The 1998-99 base level funding for the office was $203,500, which would be combined with DOA's general program operations that had 1998-99 base level funding of $8,582,400 GPR.
[Bill Sections: 508 and 509]
5. CRIMINAL PENALTIES STUDY COMMITTEE
Funding Positions
GPR - $400,000 - 1.00
Governor: Delete $200,000 annually and 1.0 position to reflect termination of the activities of the Criminal Penalties Study Committee. This Committee was established by 1997 Wisconsin Act 283 to study the classification of criminal offenses and is required to submit its report not later than April 30, 1999. The Committee will complete its activities prior to the beginning of the next fiscal year.
6. BADGER STATE GAMES
GPR $50,000
Governor: Provide $25,000 annually to double the amount of annual funding provided for assistance to Badger State Games.
7. REPEAL THE ENERGY DEVELOPMENT AND DEMONSTRATION PROGRAM AND MEDIATION OFFICE OPERATIONS APPROPRIATION
Governor: Repeal the authorization for the energy development and demonstration program in DOA and the associated annual GPR appropriation. The program was established to promote the development and demonstration of renewable energy resources available in Wisconsin and energy conservation methods appropriate for the state. The last time monies were provided to this appropriation was in fiscal year 1983-84.
Repeal the annual GPR appropriation for mediation office operations. The appropriation was established to fund a mediation office to assist in the resolution of disputes having statewide significance if a Governor elected to establish such an office by executive order. Funds were last appropriated for this activity in the 1985-87 biennium. In addition to repealing the mediation office operations appropriation, a DOA gifts and grants appropriation is modified to eliminate the reference to the office of mediation.
[Bill Sections: 109, 510, 530 and 531]
8. HOUSING -- OPERATION FRESH START REPLICATION FUNDING
GPR $464,000
Governor: Provide $232,000 annually to the Division of Housing's grants to local housing organizations appropriation to fund replication of projects similar to Madison's Operation Fresh Start program. This program assists youth and adults (ages 16 to 24) with alcohol and other drug abuse problems, poor health and nutrition, low educational achievement, poor employment history, physical, sexual and emotional abuse or a criminal history to become self-sufficient. During the 1998-99 fiscal year, base level funding in the Division of Housing and WHEDA totaling $530,000 was reallocated at the direction of the Governor to fund two Operation Fresh Start replication projects. The additional funding provided under the Governor's recommendation would support two more replication projects during the 1999-01 fiscal biennium.
9. HOUSING -- ELIMINATE MAXIMUM AMOUNT FOR TRANSITIONAL HOUSING GRANTS
Governor: Eliminate the current $50,000 individual grant maximum on awards under the transitional housing grant program. This program provides grants to counties, municipalities, community action agencies and private, nonprofit organizations to operate transitional housing and related supportive services for the homeless. The purpose of the program is to facilitate the movement of homeless persons to independent living. During the 1997-99 biennium, grants totaling $900,000 were awarded under the program to 20 different agencies assisting the homeless.
[Bill Section: 64]
Information Technology
1. BUREAU OF JUSTICE INFORMATION SYSTEMS -- DISTRICT ATTORNEY AND INTEGRATED JUSTICE INFORMATION SYSTEM PROJECTS
PR $9,789,200
Governor: Provide $4,894,600 annually for the Bureau of Justice Information Systems (BJIS) to complete information technology automation in all district attorneys’ (DA) offices statewide and for other integrated justice information system projects. Program revenue would be provided from the following sources: (a) $2,484,300 in 1999-00 and $1,064,600 in 2000-01 from justice information system fee revenue; (b) $1,600,000 annually from penalty assessment surcharge revenue; and (c) $810,300 in 1999-00 and $2,230,000 in 2000-01 from federal anti-drug enforcement and matching state penalty assessment revenues provided through DOA's Office of Justice Assistance (OJA). In total, including base funds, the executive budget office indicates that $6,080,000 annually would be budgeted for DA office automation and $250,000 annually for integrated justice information system projects.
Create a separate, annual appropriation for justice information systems development, operation and maintenance funded from penalty assessment revenues, with the amounts appropriated transferred from OJA to BJIS. (See "Office of Justice Assistance" for further information on penalty assessment funding.)
As a nonstatutory provision, direct the Secretary of DOA to allocate $363,900 in 1999-00 and $1,782,000 in 2000-01 from OJA’s federal anti-drug enforcement and matching state penalty assessment appropriations to fund the installation of equipment for automated justice information systems. Direct the Secretary of DOA to allocate $446,500 annually from OJA federal anti-drug enforcement monies to fund the general operations of BJIS related to automated justice information systems. [Note: these amounts are $100 more in 1999-00 and $1,500 less in 2000-01 than the amounts appropriated to BJIS from OJA’s federal anti-drug enforcement and matching state penalty assessment monies. Further, BJIS’s interagency assistance appropriation can receive only OJA federal anti-drug funds. A technical correction is needed, therefore, to allow the transfer of OJA anti-drug enforcement matching state penalty assessment funds.]
[Bill Sections: 115, 526, 539, 542 and 9101(10)&(11)]
2. STATE INFORMATION TECHNOLOGY SERVICES -- EXPENDITURE REESTIMATE
