In addition to the current law requirements for obtaining permits to place a
structure or deposit in navigable waters or to remove material from the bed of a lake
or stream, current law requires that a drainage board obtain a separate permit from
DNR to acquire and remove any dam or obstruction or to clean out, widen, deepen,
or straighten any navigable stream. Under current law, only the Duck Creek

Drainage District is exempt from this permitting requirement. This bill eliminates
the permitting requirement for all drainage districts operated by drainage boards.
Current law grants the state bonding authority to acquire and develop land for
various conservation purposes under two stewardship programs, one that began in
1990 and one that began on July 1, 2000. These programs are administered by DNR.
Under the program that began in 1990, the state is prohibited from using
stewardship bonding to provide money to counties, local units of government, or
political subdivisions so that they may acquire land by condemnation or may develop
land that has been acquired by condemnation. Under current law, the program that
began on July 1, 2000, does not include this prohibition. This bill applies the
prohibition to this program.
Under current law, with certain exceptions, DNR may not use stewardship
bonding under the program that began on July 1, 2000, for a project or activity that
exceeds $250,000 in cost unless it first notifies JCF of the proposal. This bill provides
that DNR need not give notice to JCF unless the amount for the project or activity
exceeds $500,000.
Under current law, DNR awards grants to cities and villages for up to 50% of
the cost of various tree projects, including tree disease evaluations and public
education concerning trees in urban areas. This bill expands the grant program to
authorize DNR to also award grants to counties, towns, and nonprofit organizations.
Under current law, DNR may award grants for up to 50% of the cost of acquiring
certain clothing, supplies, equipment, and vehicles used for fire suppression
purposes. This bill provides that the grants may also include awards for 50% of the
cost of acquiring fire prevention materials and of the cost of training fire fighters in
forest fire suppression techniques.
Occupational regulation
This bill increases the fees for initial and renewal credentials for each of the
occupations and businesses that DORL regulates except for renewal credentials for
aesthetics schools, barbering or cosmetology schools and instructors, cemetery
authorities, cemetery preneed sellers, cemetery salespersons, charitable
organizations, electrology instructors, electrology schools, and manicuring schools.
Under current law, with certain exceptions, a person may not act as a private
security person unless he or she is issued a private security permit by DORL. A
"private security person" is defined as a private police, guard, or other person who
stands watch for security purposes. To qualify for a private security permit, a person
must satisfy certain requirements, including being employed by a private detective
agency that is licensed by DORL and that does both of the following: 1) supplies
uniformed private security personnel that patrol exclusively on private property;
and 2) provides an up-to-date written record of its employees to DORL.

Also under current law, an individual who applies for a private security permit
is eligible for a temporary private security permit that allows the person to engage
in private security activities while DORL considers the application. A temporary
private security permit is valid for no more than 30 days. This bill increases the
duration of a temporary private security permit to no more than 60 days. The bill
also clarifies that an applicant for a temporary private security permit is subject to
the requirements under current law that an applicant for a credential issued by
DORL or a board in DORL reimburse DORL for the cost of investigating the
applicant and pay a fee for the temporary permit.
The bill also creates a private security agency license and allows a person to
qualify for a private security permit by being employed by either a licensed private
detective agency or a private licensed security agency that does both of the following:
1) supplies uniformed private security personnel that patrol exclusively on private
property; and 2) provides an up-to-date written record of its employees to DORL.
Under the bill, DORL may issue a private security agency license to an
individual, partnership, limited liability company, or corporation that does both of
the following: 1) satisfies any qualification requirements established by DORL by
rule; and 2) executes and files a bond or liability policy with DORL in an amount
established by DORL by rule. In addition, if the applicant is an individual, he or she
must be over 18 years of age and may not have been convicted of a felony for which
he or she has not been pardoned. A private security agency license is renewable
every two years upon payment of a $20 renewal fee.
The bill prohibits a person from advertising, soliciting, or engaging in the
business of a private security agency unless the person is issued a private security
agency license under the bill. The bill allows DORL to revoke, suspend, or limit a
private security agency license if the licensee: 1) is convicted of a misdemeanor or
violates a state or local law punishable by a forfeiture (civil monetary penalty) if the
circumstances of the conviction or violation are substantially related to acting as a
private security agency; 2) is convicted of a felony and is not pardoned for that felony;
3) makes a false statement in connection with an application for the license; or 4)
engages in conduct reflecting adversely on the person's professional qualification.
Under current law, a person who has been granted a funeral director's license
by the funeral directors examining board (board) must apply to renew the license
every two years. The application must include proof that the applicant has
completed certain continuing education requirements and is doing business at a
recognized funeral establishment. However, if a person is not doing business at a
recognized funeral establishment, he or she may be granted a certificate in good
standing as a funeral director by the board. A person who has been granted such a
certificate may renew his or her license at any time during the subsequent two-year
licensure period if he or she is able to submit proof that he or she is doing business
at a recognized funeral establishment.
This bill eliminates certificates in good standing as a funeral director but
provides for a 12-month transitional period during which the board is required to
restore the funeral director licenses of certain persons who hold valid certificates in

good standing under current law. If a person holds a valid certificate that was
granted for a license that was granted or last renewed before July 1, 1995, the board
must restore his or her license if he or she demonstrates competence as a funeral
director by a method satisfactory to the board, including by passing a written or oral
examination or providing specified documentation to the board. If the board requires
an examination, it may not be more stringent than the examination that is required
for persons with licenses granted by other jurisdictions who apply for a reciprocal
license from the board. In addition, the person must submit proof that he or she has
completed at least 15 hours of continuing education during the past two years.
Under this bill, if a person holds a valid certificate that was granted for a license
that was granted or last renewed on or after July 1, 1995, the board must restore his
or her license if he or she submits proof that he or she has completed at least 15 hours
of continuing education during the past two years. The bill specifies that no fee may
be charged to a person who applies for restoration of a license under the bill or who
takes an examination that is required for restoration of a license under the bill.
Under current law, an applicant for a credential issued by DORL or a board in
DORL may be required to take an examination. If an examination is required, the
applicant must pay an examination fee to DORL. The fee must be an amount equal
to DORL's best estimate of the actual cost of preparing, administering, or grading the
examination or obtaining and administering an approved examination from a test
service.
Under this bill, if DORL prepares, administers, or grades the examination, the
fee must be equal to DORL's best estimate of the actual cost of preparing,
administering, or grading the examination. If DORL approves an examination
prepared, administered, and graded by a test service provider, the fee must be equal
to DORL's best estimate of the actual cost of approving the examination, including
selecting, evaluating, and reviewing the examination.
Under current law, DORL is required to mail a notice of credential renewal to
each holder of a credential issued by DORL or a board in DORL at least 30 days prior
to the renewal date for the credential. The notice must be mailed to the last address
provided to DORL by the credential holder. Under this bill, DORL may either mail
the notice of credential renewal as required under current law or give the notice to
the credential holder by electronic transmission.
retirement and group insurance
This bill creates a qualified transportation fringe benefit plan for state
employees, administered by DETF. This plan is authorized under the federal
Internal Revenue Code (IRC) and permits employees to set aside pre-tax income to
pay eligible transportation expenses before taxes are computed. Three types of
eligible transportation expenses are covered: parking expenses incurred at or near
an employer's premises; expenses incurred to pay for an employee's use of mass

transportation; and expenses incurred by an employee in paying his or her share of
the cost of using a van pool.
Under current law, the group insurance board may not enter into an agreement
to modify or expand group insurance coverage in a manner that materially affects
the level of insurance premiums required to be paid by the state or its employees or
the level of benefits. This bill authorizes the group insurance board to enter into such
an agreement if the modification or expansion would reduce the cost incurred by the
state in providing group health insurance to state employees.
This bill authorizes the secretary of employee trust funds (secretary) to settle
any dispute in an appeal of a determination made by DETF that is subject to review
by the employee trust funds board, the group insurance board, the teachers
retirement board, the Wisconsin retirement board, and the deferred compensation
board. In deciding whether to resolve such a dispute, the secretary must consider
the cost of litigation, the likelihood of success on the merits, the cost of delay in
resolving the dispute, the actuarial impact on the public employee trust fund, and
any other relevant factor the secretary considers appropriate.
In addition, the bill authorizes the secretary, if the secretary determines that
an otherwise eligible participant has unintentionally forfeited or otherwise
involuntarily ceased to be eligible for any benefit administered by DETF because of
an error in administration by DETF, to order the correction of the error to prevent
inequity.
state government
Justice
Currently, DOJ is required to provide legal services to DATCP for enforcement
of the laws related to consumer protection. DOJ may commence an action to restrain
by temporary or permanent injunction the violation of marketing and trade
practices, including fraudulent representations, negative sales of
telecommunication services, or unfair retailing of merchandise. This bill removes
the authority of DOJ to enforce the laws relating to consumer protection and places
that authority with DATCP or the district attorney. The bill permits DATCP to
request DOJ to provide legal services to DATCP relating to consumer protection.
This bill increases from $8 to $12 the fee that DOJ charges a firearms dealer
for each firearms restrictions record search requested by the dealer.
With certain exceptions, current law requires that a person pay a penalty
assessment if ordered by a court to pay a fine or forfeiture for violating a state law
or local ordinance. The penalty assessment amount is 23% of the amount of the fine
or forfeiture (civil monetary penalty). Twenty-seven fifty-fifths of the revenue
collected under the assessment is appropriated to DOJ to fund training of law
enforcement, jail, and secure detention officers, and to fund the purchase of
equipment for the state crime laboratories. The remaining twenty-eight fifty-fifths

of the revenue collected under the penalty assessment is appropriated to the office
of justice assistance (OJA) to fund an assortment of criminal justice and law
enforcement programs.
This bill decreases the penalty assessment to 13% of the amount of a fine or
forfeiture. The revenue collected under the penalty assessment is appropriated to
OJA to fund the programs that OJA currently funds with the twenty-eight
fifty-fifths portion of the 23% penalty assessment.
The bill creates a law enforcement training fund assessment that is separate
from the penalty assessment. The law enforcement training fund assessment is an
11% surcharge on fines and forfeitures ordered for a violation of most state laws or
local ordinances. The bill appropriates the revenue collected under the law
enforcement training fund assessment to DOJ to fund the law enforcement, jail, and
secure detention officer training, and the purchase of equipment for the crime
laboratories that is currently funded by the twenty-seven fifty-fifths portion of the
penalty assessment revenue appropriated to DOJ.
Under current law, DOJ administers a grant program to fund cooperative
county-tribal law enforcement programs in counties that have Indian reservations
within their boundaries. OJA administers a similar grant program to fund county
law enforcement programs that are not supported by the DOJ grant program in
counties that border Indian reservations. Each program is funded from Indian
gaming receipts.
This bill moves administration of the DOJ cooperative county-tribal law
enforcement grant program to DOA and consolidates it with the OJA grant program
for counties bordering Indian reservations. The consolidated grant program
provides funding for law enforcement services to counties that have an Indian
reservation within their boundaries or that border an Indian reservation.
State employment
Under current law, appointments and promotions to positions in the state
classified civil service must be made according to merit and fitness. When vacancies
occur in such positions, the administrator of the division of merit recruitment and
selection in DER must certify names that may be considered for appointment to the
position. This bill authorizes the administrator, with the approval of the secretary
of employment relations, to establish pilot programs for the recruitment of
individuals to fill vacant positions in the classified service. Under the bill, the pilot
programs, which may not be in effect for more than one year, are exempt from all
recruitment and certification requirements under current law, except that
appointments and promotions to positions must be made according to the applicant's
merit and fitness for the position.
Currently, any legislator who establishes a temporary residence in Madison for
the period of any regular or special legislative session may receive an allowance for
expenses incurred for food and lodging for each day that he or she is in Madison on
legislative business. The amount of the allowance is recommended by the secretary

of employment relations and incorporated into the state compensation plan and
must be approved by the joint committee on employment relations.
This bill provides that the allowance is 90% of the per diem rate for travel for
federal government business within the city of Madison, as established by the federal
general services administration. Under the bill, the amount is established before the
start of the biennial legislative session and remains in effect the entire biennial
session.
Under current law, appointing authorities in state agencies are prohibited from
appointing nonresidents to limited term appointments and to project positions in the
state civil service. This bill eliminates this prohibition.
State finance
This bill limits the aggregate amount of general purpose revenue (GPR) that
may be appropriated in any fiscal biennium. Under the bill, the limit is calculated
by first establishing a base year amount that equals the amount of GPR appropriated
in the second year of the prior fiscal biennium. For the new fiscal biennium, the base
year amount is increased by the annual percentage change in state aggregate
personal income for the calendar year that begins on the January 1 that precedes the
first year of the fiscal biennium. This amount is increased by the annual percentage
change in state aggregate personal income for the calendar year that begins on the
January 1 that precedes the second year of the fiscal biennium. The sum of these two
amounts is the aggregate amount of GPR that may be appropriated during the fiscal
biennium. Under the bill, DOA is required to make the determination of the amount
of GPR that may be appropriated for each fiscal biennium.
The bill excludes certain GPR appropriations from the limit. These are
appropriations for debt service or operating notes; appropriations to honor a moral
obligation pledge that the state has taken with respect to certain revenue bonds;
appropriations to refund certain earnings to the federal government relating to state
bond issues; an appropriation for legal expenses and the costs of judgments, orders,
and settlements of actions and appeals incurred by the state; an appropriation to
make a payment for tax relief; an appropriation to make a transfer from the general
fund to the budget stabilization fund; an appropriation to make a transfer from the
general fund to the tax relief fund; and any appropriation contained in a bill that is
enacted with approval of at least two-thirds of the members of each house of the
legislature.
This bill requires that certain transfers be made between the general fund, the
budget stabilization fund, and the tax relief fund, which is created in the bill.
Under the bill, the secretary of administration (secretary) must annually
calculate the difference between the amount of tax revenues projected to be deposited
in the general fund (projected tax receipts) and the amount of tax revenues actually
deposited in the general fund during the preceding fiscal year (actual tax receipts).
If the projected tax receipts are less than the actual tax receipts, the secretary must

transfer from the general fund to the budget stabilization fund an amount equal to
50% of the difference between the projected tax receipts and the actual tax receipts.
This transfer, however, may not take place once the balance of the budget
stabilization fund is at least equal to 5% of the estimated expenditures from the
general fund during the fiscal year, as projected in the biennial budget act or acts.
Also, the secretary must reduce the amount of the transfer if the transferred amount
would cause the general fund balance to be less than the required general fund
statutory balance. (The required statutory balance refers to a statement in current
law that the estimated general fund balance in any fiscal year may not be an amount
less than the following percentage of the total general purpose revenue
appropriations for that fiscal year plus any amount from general purpose revenue
designated as "Compensation Reserves": for fiscal year 2002-03, 1.4%; for fiscal year
2003-04, 1.6%; for fiscal year 2004-05, 1.8%; and, for fiscal year 2005-06 and each
fiscal year thereafter, 2%.)
The bill creates a tax relief fund that consists of the difference between the
projected tax receipts and the actual tax receipts in each fiscal year and the amount
transferred from the general fund to the budget stabilization fund in each fiscal year.
In addition, the bill creates an individual income tax relief fund tax credit,
which may be claimed by an individual taxpayer or by a taxpayer and his or her
spouse. A claimant may also claim a credit for each of his or her dependents,
although a dependent may not claim a credit. The credit is nonrefundable, meaning
that if the amount of the credit exceeds the taxpayer's tax liability, no check is issued
in the amount of the difference. The credit is available only in taxable years in which
the amount in the tax relief fund exceeds $25,000,000. If the secretary certifies that
the amount in the fund exceeds that amount, DOR determines the amount of the
credit that may be claimed in that taxable year. The credit amount is determined by
dividing the amount certified by the sum of all claimants, all spouses of claimants,
and all dependents, and then modified so that the amount in the fund is expended
as fully as possible.
On November 23, 1998, Wisconsin and other states agreed to a settlement of
lawsuits brought against the major U.S. tobacco product manufacturers (the tobacco
settlement agreement). Under the tobacco settlement agreement, the state is to
receive annual payments from the U.S. tobacco product manufacturers in perpetuity.
This bill authorizes the secretary of administration (secretary) to sell the state's right
to receive payments under the tobacco settlement agreement and provides that the
proceeds from this sale are to be deposited in the permanent endowment fund, a trust
fund created in the bill.
Under the bill, annually the secretary must transfer a certain amount of
moneys in the permanent endowment fund to the general fund. For 2002 and 2003,
the amount that must be transferred from the permanent endowment fund to the
general fund is the amount that the state would have received as payments under
the tobacco settlement agreement had the state's right to receive the payments not
been sold. The amount available for transfer in each subsequent year, as calculated
by the investment board, must equal the sum of the following:

1. An amount that equals 8.5% of the market value of the investments in the
permanent endowment fund on June 1.
2. All proceeds of, and investment earnings on, investments of the permanent
endowment fund made at the direction of the secretary that are received in the fiscal
year.
3. All other amounts identified by the secretary as payments of residual
interests to the state from the sale of the state's right to receive moneys under tobacco
settlement agreement that are received in the fiscal year.
The bill also requires that, in fiscal years 2001-02 and 2002-03, the first
$12,006,400 and $21,169,200, respectively, in payments from the tobacco settlement
agreement be deposited in the tobacco control fund and appropriated to the tobacco
control board for distribution to specific smoking cessation and prevention programs
and for grants for smoking cessation education, research, and enforcement
programs. In the event that the state's right to receive payments under the tobacco
settlement agreement is sold before the required amounts are received in fiscal years
2001-03, the bill requires that a necessary amount be transferred from the general
fund to the tobacco control fund to make up any shortfall.
The bill provides that the investment board may invest the assets of the
permanent endowment fund in any investment that is an authorized investment for
assets in the fixed retirement investment trust and the variable retirement trust.
In addition, the bill requires the investment board to invest certain of the assets in
the permanent endowment fund according to the terms and conditions specified by
the secretary; the bill specifically provides that the investment board is not subject
to its statutory standard of responsibility when it makes such an investment.
The bill also authorizes the secretary of administration to organize one or more
nonstock corporations or limited liability companies for any purpose related to the
sale of the state's right to receive payments under the tobacco settlement agreement
and appropriates moneys for the organization and initial capitalization of any such
corporation or company.
The bill establishes the legal characteristics of any sale, assignment, or transfer
of payments under the tobacco settlement agreement. In addition, the bill provides
that, with certain exceptions, this state's version of Article 9 of the Uniform
Commercial Code governs the granting and enforcing of security interests in those
payments. Article 9 generally governs similar transactions. Under the bill, if a
person obtains, evidences, and provides notice of an interest in the tobacco
settlement agreement payments under the procedure specified in the bill, that
interest is enforceable against the debtor, any assignee or grantee, and all third
parties, including creditors under any lien obtained by judicial proceedings. In
addition, the interest is superior to all other liens against the tobacco settlement
agreement payments that arise after the date on which the interest attaches to those
payments.
Currently, DOA is required, subject to numerous exceptions, to make purchases
by solicitation of bids or competitive sealed proposals preceded by public notice. DOA
must prepare written justification of contractual service procurements and must
comply with rules regarding conflicts of interest between contractors and DOA

employees. DOA must also attempt to ensure that a specified portion of its
procurement business is awarded to minority-owned businesses. This bill exempts
contracts entered into by DOA to provide financial services in relation to this state's
interest in the tobacco settlement agreement payments from compliance with these
requirements.
Currently, with certain exceptions, no person may commence a legal action
against the state unless the person presents a claim to the claims board for a
recommendation and the legislature denies the claim. This bill exempts claims
presented in relation to this state's interest in the tobacco settlement agreement
payments from compliance with this requirement.
Under current law, the Wisconsin Health and Educational Facilities Authority
(WHEFA) may issue bonds to finance certain projects of health or educational
facilities, such as the construction or remodeling of a health or educational facility
or related structure, and to refinance outstanding debt of health or educational
facilities. Under this bill, WHEFA is authorized to purchase the state's right to
receive payments under the tobacco settlement agreement, to make a loan that is
secured by the state's right to receive those payments, and to issue bonds to finance
the purchase or to make the loan. Any bonds issued to finance the purchase or to
make the loan must be payable from, or secured by interests in, the payments under
the tobacco settlement agreement. In addition, WHEFA is authorized to organize
one or more nonstock corporations or limited liability companies for any purpose
related to the purchase or sale of the state's right to receive payments under the
tobacco settlement agreement.
This bill affirms the state's participation in the tobacco settlement agreement
and states that the payments received under that agreement are the property of the
state, to be used as the state decides by law. The bill also provides that no political
subdivision of the state, or officer or agent of a political subdivision, may maintain
a claim related to the tobacco settlement agreement or any claim against any party
that was released from liability by the state under the tobacco settlement agreement.
This bill requires the secretary to prepare a statement of estimated general
purpose revenue receipts and expenditures in the biennium following the succeeding
biennium based on recommendations in the executive biennial budget bill or bills.
This statement is to accompany the biennial budget report that is submitted by the
secretary on the day that the governor delivers the budget message to the legislature.
The bill also requires that the legislative fiscal bureau prepare the same
statement but based on the recommendations in the executive biennial budget bill
or bills, as modified by an amendment offered by JCF, as engrossed by the first house,
as concurred in and amended by the second house or as nonconcurred in by the
second house, or as reported by any committee on conference.
The bill requires the secretary to prepare, as part of the biennial budget report,
a comparison of the state's budgetary surplus or deficit according to generally
accepted accounting principles, as reported in the most recent audited financial

report prepared by DOA, and the estimated change in the surplus or deficit based on
recommendations in the biennial budget bill or bills.
Current statutes state that "[n]o bill directly or indirectly affecting general
purpose revenues ... may be enacted by the legislature if the bill would cause the
estimated general fund balance on June 30 of any fiscal year ... to be an amount equal
to less than the following percentage of the total general purpose revenue
appropriations for that fiscal year plus any amount from general purpose revenue
designated as "Compensation Reserves" for that fiscal year ...." For fiscal year
2002-03, the amount is 1.4%. This bill reduces this amount to 1.2%.
Public utility regulation
Under current law, the PSC is required to establish standards for water or
sewer service that is provided to occupants of a mobile home park by the park
operator or a contractor. The PSC's rules must include requirements for metering,
billing, depositing, arranging deferred payment, installing service, refusing or
discontinuing service, and resolving disputes about service. The rules must also
ensure that charges are reasonable and not unjustly discriminatory, that service is
reasonably adequate, and that any related practice is just and reasonable. This bill
transfers authority to regulate water and sewer service provided to occupants of
manufactured home parks from the PSC to the department of commerce.
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