For 2007-09 Budget -- Not Ready For Introduction
2007 BILL
AN ACT ...; relating to: transferring the administration of tax appeals commission deposits from the department of administration to the department of revenue.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
Currently, if a taxpayer files with the tax appeals commission an appeal of a DOR ruling related to taxes, the taxpayer may deposit the entire amount of the additional taxes DOR claims is due, plus interest, with the secretary of administration while the appeal is pending. DOR is required under current law to issue a certificate to DOA authorizing the secretary to administer the deposit and issue any refund that is due the taxpayer following the conclusion of the appeals process. Currently, similar procedures for the deposit of tax assessments, and the issuance of a refund that may be due, also apply to other taxes including the oil and gas severance tax, the motor vehicle fuel floor tax, the intoxicating liquor floor tax, and the cigarette inventory tax.
Under this bill, such deposits will be made, and such refunds will be issued, by DOR directly, and DOA will no longer administer the deposits or issue any refund that may be due.
For further information see the state 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:
SECTION 1. 71.74 (14) of the statutes is amended to read:
71.74 (14) ADDITIONAL REMEDY TO COLLECT TAX. The department may also proceed under s. 71.91 (5) for the collection of any additional assessment of income or franchise taxes or surtaxes, after notice thereof has been given under sub. (11) and before the same shall have become delinquent, when it has reasonable grounds to believe that the collection of such additional assessment will be jeopardized by delay. In such cases notice of the intention to so proceed shall be given by registered mail to the taxpayer, and the warrant of the department shall not issue if the taxpayer within 10 days after such notice furnishes a bond in such amount, not exceeding double the amount of the tax, and with such sureties as the department shall approve, conditioned upon the payment of so much of the additional taxes as shall finally be determined to be due, together with interest thereon as provided by s. 71.82 (1) (a). Nothing in this subsection shall affect the review of additional assessments provided by ss. 71.88 (1) (a) and (2) (a), 71.89 (2), 73.01, and 73.015, and any amounts collected under this subsection shall be deposited with the secretary of administration department and disbursed after final determination of the taxes as are amounts deposited under s. 71.90 (2).
SECTION 2. 71.90 (2) of the statutes is amended to read:
71.90 (2) DEPOSIT WITH THE SECRETARY OF ADMINISTRATION DEPARTMENT. At any time while the petition is pending before the tax appeals commission or an appeal in regard to that petition is pending in a court, the taxpayer may offer to deposit the entire amount of the additional taxes, penalties, and fines, together with interest, with the secretary of administration. If an offer to deposit is made, the department of revenue shall issue a certificate to the secretary of administration authorizing the secretary to accept payment of such taxes together with interest to the first day of the succeeding month and to give a receipt. A copy of the certificate shall be mailed to the taxpayer who shall pay the taxes and interest to the secretary of administration within 30 days. A copy of the receipt of the secretary of administration shall be filed with the department. The department shall, upon final determination of the appeal, certify to the secretary of administration the amount of the taxes as finally determined and direct the secretary of administration to refund to the appellant any portion of such payment which has been found to have been improperly assessed, including interest. The secretary of administration shall make the refunds directed by the certificate within 30 days after receipt. Taxes paid to the secretary of administration under this subsection shall be subject to the interest provided by ss. 71.82 and 71.91 (1) (c) only to the extent of the interest accrued on the taxes prior to the first day of the month succeeding the application for hearing. Any portion of the amount deposited with the secretary of administration which is refunded to the taxpayer shall bear interest at the rate of 9% per year during the time that the funds are on deposit.
SECTION 3. 77.59 (7) of the statutes is amended to read:
77.59 (7) If the department believes that the collection of any tax imposed by this subchapter will be jeopardized by delay, it shall notify the person determined to owe the tax of its intention to proceed under s. 71.91 (5) for collection of the amount determined to be owing, including penalties and interest. Such notice shall be by certified or registered mail or by personal service and the warrant of the department shall not issue if the person, within 10 days after such notice furnishes a bond in such amount not exceeding double the amount determined to be owing and with such sureties as the department approves, conditioned upon the payment of so much of the taxes, interest, and penalties as shall finally be determined to be due. Nothing in this subsection shall affect the review of determinations of tax as provided in this subchapter and any amounts collected under this subsection shall be deposited with the secretary of administration department and disbursed after final determination of the taxes as are amounts deposited under ss. 71.89 (1) and 71.90 (2).
(End)
LRB-0892LRB-0892/12
JK&DAK&PJK:all:rs
2007 - 2008 LEGISLATURE
DOA:......Easton, BB0175 - Increase excise tax rate on cigarette and tobacco products sales; health care quality fund
For 2007-09 Budget -- Not Ready For Introduction
2007 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
This bill increases the rate of the excise tax imposed on the sale of cigarettes from 77 cents per pack to $2.02 per pack. The bill also increases the rate of the excise tax imposed on the sale of tobacco products from 25 percent of the manufacturer's list price to distributors to 65.6 percent of the manufacturer's list price to distributors.
health and human services
Medical Assistance
Under current federal and state law, Medical Assistance (MA) is a jointly funded, federal-state program that DHFS administers to provide health care services to eligible individuals with very low incomes and few assets; the state share of MA is paid from a combination of general purpose revenues, program revenues from hospital assessments, and segregated funds under the MA trust fund. Under a waiver of federal Medicaid laws from the federal Department of Health and Human Services, DHFS also administers under MA the Badger Care Health Care Program (BadgerCare). BadgerCare provides health care coverage to certain low-income families and to certain low-income children who do not reside with a parent. This bill establishes a trust fund designated as the health care quality fund, from moneys obtained from an increase in cigarette and other tobacco products taxes and from certain other sources. Under the bill, moneys from the health care quality fund are used as another source of funding for MA and for BadgerCare.
Under current law, DHFS annually assesses hospitals a total of $1,500,000, in proportion to each hospital's respective gross private-pay patient revenues during the hospital's most recent fiscal year. Moneys from the assessments are credited to a program revenue appropriation account, from which is paid a portion of MA program benefits, certain long-term care pilot projects under the Long-term Support Community Options Program (COP), and services under the Family Care Program. The bill eliminates the current hospital assessment and, instead, authorizes DHFS to levy, enforce, and collect an annual assessment on hospitals, based on claims information collected by an entity from hospitals under the laws relating to health care information. Under the bill, the assessments are due before December 1 and are based on a rate not to exceed 1 percent of a hospital's gross revenues, as adjusted by DHFS, although DHFS may consider the hospital's MA reimbursement. The assessments must be deposited into the health care quality fund, as created in the bill, and are first due before December 1, 2007.
Public assistance
Currently, DHFS reimburses pharmacists and pharmacies for prescription drugs purchased by elderly persons who are enrolled in a program of prescription drug assistance (Senior Care). Senior Care provides payments under the program from general purpose revenues, rebate payments made by prescription drug manufacturers, and federal funds.
This bill establishes a trust fund designated as the health care quality fund, from moneys obtained from an increase in cigarette and other tobacco products taxes and from certain other sources. Under the bill, moneys from the health care quality fund are used as another source of funding for payments made under Senior Care.
Other health and human services
Currently, DHFS administers a grant program for statewide tobacco use control that funds programs to prevent, reduce, or cease tobacco use. Also under current law, a trust fund designated as the permanent endowment fund exists that consists of proceeds from the sale of the state's right to receive payments under a master tobacco settlement agreement and investment earnings on the proceeds.
This bill establishes a trust fund designated as the health care quality fund, from moneys obtained by increasing cigarette and other tobacco products taxes, by transferring funds from the permanent endowment fund, and from certain other sources. Under the bill, moneys from the health care quality fund are appropriated in part for the statewide grant program for tobacco use control and for health care quality and patient safety information.
insurance
Under current law, certain health care providers are required to carry health care liability insurance with liability limits of at least $1,000,000 for each occurrence and at least $3,000,000 for all occurrences in a policy year. Any portion of a medical malpractice claim against a health care provider subject to the health care liability insurance requirements that exceeds the policy limits of the health care provider's health care liability insurance is paid by the injured patients and families compensation fund. Moneys for the fund come from annual assessments paid by the health care providers who are subject to the health care liability insurance requirements. This bill transfers $175,000,000 in fiscal year 2007-08 from the injured patients and families compensation fund to the health care quality fund, as created in the 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:
SECTION 1. 20.435 (4) (bc) of the statutes is repealed.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
****NOTE: This is reconciled s. 20.435 (4) (bc). This SECTION has been affected by drafts with the following LRB numbers: 0892, 1521, and 0905.
SECTION 2. 20.435 (4) (bm) of the statutes is amended to read:
20.435 (4) (bm) Medical Assistance, food stamps, and Badger Care administration; contract costs, insurer reports, and resource centers. Biennially, the amounts in the schedule to provide a portion of the state share of administrative contract costs for the Medical Assistance program under s. 49.45, the food stamp program under s. 49.79, and the Badger Care health care program under s. 49.665 and to provide the state share of administrative contract costs for the food stamp program under s. 49.79, other than payments to counties and tribal governing bodies under s. 49.78 (8), to develop and implement a registry of recipient immunizations, to reimburse insurers 3rd parties for their costs under s. 49.475, for costs associated with outreach activities, and for services of resource centers under s. 46.283. No state positions may be funded in the department of health and family services from this appropriation, except positions for the performance of duties under a contract in effect before January 1, 1987, related to the administration of the Medical Assistance program between the subunit of the department primarily responsible for administering the Medical Assistance program and another subunit of the department. Total administrative funding authorized for the program under s. 49.665 may not exceed 10% of the amounts budgeted under pars. (bc), (p), and (x).
****NOTE: This is reconciled s. 20.435 (4) (bm). This SECTION has been affected by drafts with the following LRB numbers: -0892/9, 0248/2, and 0905/1.
****NOTE: This is reconciled s. 20.435 (4) (bm). This SECTION has been affected by drafts with the following LRB numbers: 0892, 1521, and 0905.
SECTION 3. 20.435 (4) (gp) of the statutes is repealed.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 4. 20.435 (4) (xd) of the statutes is created to read:
20.435 (4) (xd) Health care quality fund; Medical Assistance and Badger Care benefits. From the health care quality fund, as a continuing appropriation, the amounts in the schedule to provide a portion of the state share of Medical Assistance program benefits administered under s. 49.45 and to provide a portion of the costs of benefits under the Badger Care health care program under s. 49.665.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 5. 20.435 (4) (xe) of the statutes is created to read:
20.435 (4) (xe) Health care quality fund; administration. From the health care quality fund, as a continuing appropriation, the amounts in the schedule to provide a portion of the state share of administrative contract costs for the Medical Assistance program under s. 49.45.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 6. 20.435 (4) (xh) of the statutes is created to read:
20.435 (4) (xh) Health care quality fund; prescription drug assistance; benefits. From the health care quality fund, as a continuing appropriation, the amounts in the schedule for payment to pharmacies and pharmacists under s. 49.688 (7) for prescription drug assistance for elderly persons.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 7. 20.435 (4) (xi) of the statutes is created to read:
20.435 (4) (xi) Health care quality fund; prescription drug assistance; administration. From the health care quality fund, as a continuing appropriation, the amounts in the schedule for administration of the program for prescription drug assistance for elderly persons under s. 49.688 (7).
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 8. 20.435 (4) (xk) of the statutes is created to read:
20.435 (4) (xk) Health care quality fund; quality and patient safety information technology. From the health care quality fund, as a continuing appropriation, the amounts in the schedule for promoting the adoption of health care quality and patient safety information technology and developing exchanges of health information.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 9. 20.435 (5) (r) of the statutes is created to read:
20.435 (5) (r) Health care quality fund; tobacco use control. From the health care quality fund, as a continuing appropriation, the amounts in the schedule for aids under the grants under s. 255.15 (3).
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 10. 25.17 (1) (gd) of the statutes is created to read:
25.17 (1) (gd) Health care quality fund (s. 25.772);
SECTION 11. 25.69 of the statutes is amended to read:
25.69 Permanent endowment fund. There is established a separate nonlapsible trust fund designated as the permanent endowment fund, consisting of all of the proceeds from the sale of the state's right to receive payments under the Attorneys General Master Tobacco Settlement Agreement of November 23, 1998, and all investment earnings on the proceeds. There is transferred from the permanent endowment fund to the health care quality fund $50,000,000 in each fiscal year.
SECTION 12. 25.772 of the statutes is created to read:
25.772 Health care quality fund. There is established a separate nonlapsible trust fund designated as the health care quality fund, to consist of all of the following:
(1) The amount of the taxes collected under subchs. II and III of ch. 139 as determined under ss. 139.455 and 139.865.
(2) All moneys received under s. 50.375 from assessments on hospitals.
(3) All moneys transferred from the permanent endowment fund.
(4) All moneys transferred under 2007 Wisconsin Act (this act), section 9225 (1).
SECTION 13. 46.27 (9) (a) of the statutes is amended to read:
46.27 (9) (a) The department may select up to 5 counties that volunteer to participate in a pilot project under which they will receive certain funds allocated for long-term care. The department shall allocate a level of funds to these counties equal to the amount that would otherwise be paid under s. 20.435 (4) (b), (gp), or (w), or (xd) to nursing homes for providing care because of increased utilization of nursing home services, as estimated by the department. In estimating these levels, the department shall exclude any increased utilization of services provided by state centers for the developmentally disabled. The department shall calculate these amounts on a calendar year basis under sub. (10).
SECTION 14. 46.27 (10) (a) 1. of the statutes is amended to read:
46.27 (10) (a) 1. The department shall determine for each county participating in the pilot project under sub. (9) a funding level of state medical assistance expenditures to be received by the county. This level shall equal the amount that the department determines would otherwise be paid under s. 20.435 (4) (b), (gp), or (w), or (xd), or because of increased utilization of nursing home services, as estimated by the department.
SECTION 15. 46.275 (5) (a) of the statutes is amended to read:
46.275 (5) (a) Medical Assistance reimbursement for services a county, or the department under sub. (3r), provides under this program is available from the appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), and (xd). If 2 or more counties jointly contract to provide services under this program and the department approves the contract, Medical Assistance reimbursement is also available for services provided jointly by these counties.
SECTION 16. 46.275 (5) (c) of the statutes is amended to read:
46.275 (5) (c) The total allocation under s. 20.435 (4) (b), (gp), (o), and (w), and (xd) to counties and to the department under sub. (3r) for services provided under this section may not exceed the amount approved by the federal department of health and human services. A county may use funds received under this section only to provide services to persons who meet the requirements under sub. (4) and may not use unexpended funds received under this section to serve other developmentally disabled persons residing in the county.
SECTION 17. 46.278 (6) (d) of the statutes is amended to read:
46.278 (6) (d) If a county makes available nonfederal funds equal to the state share of service costs under a waiver received under sub. (3), the department may, from the appropriation under s. 20.435 (4) (o), provide reimbursement for services that the county provides under this section to persons who are in addition to those who may be served under this section with funds from the appropriation account under s. 20.435 (4) (b) or, (w), or (xd).
SECTION 18. 46.2785 (5) (a) of the statutes is amended to read:
46.2785 (5) (a) Medical assistance reimbursement for services a county or private agency contracts for or provides under the waiver program shall be made from the appropriation accounts under s. 20.435 (4) (b) and, (o), and (xd).
SECTION 19. 46.283 (5) of the statutes is amended to read:
46.283 (5) FUNDING. From the appropriation accounts under s. 20.435 (4) (b), (bm), (gp), (pa), and (w), and (xd) and (7) (b), (bd), and (md), the department may contract with organizations that meet standards under sub. (3) for performance of the duties under sub. (4) and shall distribute funds for services provided by resource centers.
SECTION 20. 46.284 (5) (a) of the statutes is amended to read:
46.284 (5) (a) From the appropriation accounts under s. 20.435 (4) (b), (g), (gp), (im), (o), and (w), and (xd) and (7) (b) and (bd), the department shall provide funding on a capitated payment basis for the provision of services under this section. Notwithstanding s. 46.036 (3) and (5m), a care management organization that is under contract with the department may expend the funds, consistent with this section, including providing payment, on a capitated basis, to providers of services under the family care benefit.
SECTION 21. 46.485 (2g) (intro.) of the statutes is amended to read:
46.485 (2g) (intro.) From the appropriation accounts account under s. 20.435 (4) (b) and (gp), the department may in each fiscal year transfer funds to the appropriation under s. 20.435 (7) (kb) for distribution under this section and from the appropriation account under s. 20.435 (7) (mb) the department may not distribute more than $1,330,500 in each fiscal year to applying counties in this state that meet all of the following requirements, as determined by the department:
SECTION 22. 49.45 (2) (a) 17. of the statutes is amended to read:
49.45 (2) (a) 17. Notify the governor, the joint committee on legislative organization, the joint committee on finance and appropriate standing committees, as determined by the presiding officer of each house, if the appropriation accounts under s. 20.435 (4) (b) and (gp) (xd) are insufficient to provide the state share of medical assistance.
SECTION 23. 49.45 (5m) (am) of the statutes is amended to read:
49.45 (5m) (am) Notwithstanding sub. (3) (e), from the appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), and (xd), the department shall distribute not more than $2,256,000 in each fiscal year, to provide supplemental funds to rural hospitals that, as determined by the department, have high utilization of inpatient services by patients whose care is provided from governmental sources, and to provide supplemental funds to critical access hospitals, except that the department may not distribute funds to a rural hospital or to a critical access hospital to the extent that the distribution would exceed any limitation under 42 USC 1396b (i) (3).
