SB40: Bill Text

Under current law, certain types of income received by an individual, which are deductible under federal law when the individual calculates his or her federal AGI, must be added back to federal AGI when an individual calculates his or her Wisconsin AGI.

In calculating Wisconsin AGI, this bill requires that nonresidents and part-year residents add back to federal AGI a portion of certain items that are deductible under federal law, such as the domestic production activities deduction and attorney fees and court costs involving unlawful discrimination claims.

This bill specifies that amounts received by a nonresident of this state under a covenant not to compete is taxable by this state to the extent that the covenant was based on a Wisconsin-based activity.

Other taxation

Currently, if a taxpayer appeals a DOR tax ruling to the Tax Appeals Commission, the taxpayer may deposit the additional taxes DOR claims is due, plus interest, with the secretary of administration while the appeal is pending, and DOR must authorize the secretary to administer the deposit and issue any refund that is due the taxpayer after the appeal concludes. Currently, similar tax assessment and refund issuance procedures also apply to other taxes including the oil and gas severance tax and the cigarette inventory tax.

Under this bill, such deposits are made, and such refunds are issued, by DOR directly, and DOA no longer administers the deposits or issues any refunds.

This bill imposes an assessment on a motor vehicle fuel supplier at the rate of 2.5 percent of the supplier's gross receipts from the first sale of motor vehicle fuel in this state. The supplier may take no action to increase or influence the selling price of motor vehicle fuel in order to recover the amount of the assessment. For the purpose of determining the amount of the assessment, income derived from the first sale in this state of biodiesel fuel or ethanol blended with gasoline to create gasoline consisting of at least 85 percent ethanol is not included in the supplier's gross receipts. The revenue collected from the assessment is deposited into the transportation fund.

This bill adopts the substantive provisions of the streamlined sales and use tax agreement for purposes of administering and collecting state, county, and stadium district sales and use taxes. The agreement is intended to modernize sales and use tax administration for the states that enter into the agreement and to encourage out-of-state retailers to collect the state, county, and stadium district sales and use taxes voluntarily. Under current federal law, generally, an out-of-state retailer who sells tangible personal property or services to customers in this state is not required to collect the sales tax or use tax imposed on such sales, if the retailer has no physical presence in this state. See Quill v. North Dakota, 504 U.S. 298; 112 S.Ct. 1904 (1992).

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.

Under current law, generally, the conveyance of real property from one person to another is subject to a real estate transfer fee of 30 cents for each $100 of the conveyance's value. The register of deeds for the county in which the property is located collects the fee at the time that the conveyance is recorded. The register of deeds retains 20 percent of the fee for the county and submits the remainder to the state.

This bill increases the real estate transfer fee to 60 cents for each $100 of a conveyance's value and requires the register of deeds to submit 90 percent of the fee to the state. Under the bill, the amount of the real estate transfer fee submitted to the state is deposited into the county aid fund. The state pays a portion of the amount paid to counties for circuit court costs out of the county aid fund. The state also pays from the county aid fund a portion of the amount paid to counties as community youth and family aids (generally referred to as youth aids), which are aids paid to counties for juvenile delinquency-related services. These costs and aids are currently paid out of the general fund. Beginning in 2008, county aid payments, currently referred to as shared revenue payments, will be paid in part from the county aid fund and in part from the general fund.

This bill creates sales and use tax exemptions for all of the following:

1. Tangible personal property and taxable services that are sold by a home exchange service that is operated by DVA.

2. Machines, equipment, animals, and certain other tangible personal property that are sold to a biotechnology business for use exclusively in research.

3. Machines, equipment, and certain other tangible personal property that are used exclusively in raising animals that are sold primarily to a biotechnology business, a public or private institution of higher education, or a governmental unit for use by any such entity exclusively in research or manufacturing.

4. Catalogs and the envelopes in which the catalogs are mailed.

This bill also modifies the sales and use tax exemption for motion picture film and tape to include radio and television programs. In addition, under the bill, the exemption applies to motion pictures and radio and television programs that are electronically provided to a purchaser.

Under current law, generally, a person may not sell cigarettes in this state without a permit issued by DOR. Current law also prohibits a direct marketer from selling cigarettes to consumers in this state unless the direct marketer fulfills certain requirements. Current law defines direct marketing as publishing or making accessible an offer for the sale of cigarettes to consumers in this state, or selling cigarettes, using any means by which the consumer is not physically present on a premise that sells cigarettes.

Under this bill, generally, the same provisions that apply to the direct marketing of cigarettes under current law also apply to the direct marketing of tobacco products. In addition, no person may sell cigarettes or tobacco products to consumers in this state unless the person applies to DOR for a permit.

This bill increases the fee imposed on dry cleaning facilities from 1.8 percent of the gross receipts from the previous three months from dry cleaning apparel and household fabrics to 2.8 percent of such gross receipts.

This bill allows DOR to charge a filing fee for sales tax returns that are submitted to DOR on paper.

Transportation

Highways

Current law includes provisions applicable to southeast Wisconsin freeway rehabilitation projects, including the Marquette interchange reconstruction project. Under current law, DOT may contract up to $213,100,000 in public debt for the Marquette interchange reconstruction project. DOT generally may not expend moneys, other than bonding proceeds, for any southeast Wisconsin freeway rehabilitation project that involves adding lanes five miles or more in length to an existing freeway absent enumeration of the project by the legislature. Currently no such projects are enumerated.

This bill enumerates two projects: the Zoo interchange project in Milwaukee County and the I 94 north-south corridor project in southeastern Wisconsin. The bill also increases from $213,100,000 to $303,300,000 the general obligation bonding limit and allows proceeds from this bonding also to be used to fund the I 94 north-south corridor project.

Under current law, the Building Commission may issue revenue bonds for major highway projects and transportation administrative facilities in a principal amount that, with certain exclusions, may not exceed $2,324,377,900. This bill increases the revenue bond limit from $2,324,377,900 to $2,708,341,000.

Under current law, debt service on certain public debt for major highway projects and state highway rehabilitation projects is paid from the general fund. This bill pays some or all of this debt service from the transportation fund.

Drivers and motor vehicles

This bill incorporates into state law the requirements contained in the federal REAL ID Act necessary for federal agencies to recognize for an official purpose operator's licenses and identification cards issued by this state. Under the act, an official purpose includes accessing federal facilities, boarding federally regulated commercial aircraft, and any other purpose identified by the federal Department of Homeland Security (DHS).

Under this bill, DOT may not, after May 10, 2008, issue or renew an operator's license or identification card unless the applicant presents, and DOT verifies, all of the following information:

1. An identification document that includes either the applicant's photograph or both the applicant's full legal name and date of birth.

2. Documentation showing the applicant's date of birth.

3. Proof of the applicant's social security number or verification that the applicant is not eligible for a social security number.

4. Documentation showing the applicant's name and address of principal residence.

5. Valid documentary proof that the individual is a citizen or national of the United States or an alien lawfully admitted for permanent or temporary residence in the United States.

In processing the application for an operator's license or identification card, DOT must capture and retain for at least ten years a digital image of each document presented. DOT must ver ify each document presented in the manner and to the extent required under federal law. DOT must record in the applicant's file or record the date on which verification is completed.

This bill creates a $10 federal security verification mandate fee that must be paid to DOT for the issuance, renewal, upgrading, or reinstatement of any operator's license, endorsement, instruction permit, or identification card.

For certain noncitizen applicants who present specified forms of status or authorization of legal presence in the United States, the bill requires DOT to issue operator's licenses or identification cards displaying a legend identifying the license as temporary. Such a license or identification card may not be renewed unless the applicant presents valid documentary proof that DHS extended the status by which the applicant qualified for the license or identification card. Under current law, an operator's license or identification card issued to a noncitizen generally expires on the date the person's legal presence in the United States is no longer authorized. Under the bill, under certain circumstances, a temporary operator's license or identification card issued to a noncitizen expires one year after issuance.

The bill specifies that every operator's license and identification card must include a digital color photograph of the applicant and that an applicant who does not provide a social security number must provide the basis for his or her ineligibility for a social security number.

Under current law, upon request, DOT must provide to the commercial driver license information system and the driver licensing agencies of other states any applicant or driver record information maintained by DOT. This bill specifies that upon request, DOT must provide to any driver licensing agency of another state electronic access to any record or file of an operator's license or identification card applicant, including any photograph, signature, or social security number appearing in such a record or file. Also, DOT may provide to DHFS certain applicant information for the sole purpose of verification by DHFS of birth certificate information.

The bill requires DOT to record in each licensee's operating record, and in each identification card holder's record, the information in all data fields printed on the person's license or card.

The bill requires DOT to implement certain security procedures with regard to the issuance of operator's licenses and identification cards. The bill provides for DOT to perform background investigations on employees or new hirees in its Division of Motor Vehicles (DMV). Before allowing a person to access an information system maintained by DMV, DOT must require the person's employer to conduct a background investigation. DOT may use the results of the investigation to deny or restrict access to DMV information.

Under current law, to renew most operator's licenses, DOT must administer an examination of the applicant's eyesight and provide for giving eyesight examinations at examining stations in each county. The applicant generally must appear at the examining station nearest his or her residence. Under this bill, DOT eyesight examinations at examining stations are not required to be provided in each county, and the applicant need not appear at the examining station nearest his or her residence.

The bill extends the valid period for an identification card from four years to eight years.

This bill increases the annual fee for registering an automobile from $55 to $75 and increases the annual fee for registering a motor truck or dual purpose motor home that weighs not more than 4,500 pounds from $48.50 to $75, for a vehicle that weighs not more than 6,000 pounds from $61.50 to $84, and for a vehicle that weighs not more than 8,000 pounds from $77.50 to $106.

This bill requires DOT to enter into the national Driver License Agreement (DLA) that establishes standards for the treatment and exchange of driver licensing and conviction information and other data pertinent to the licensing process. The DLA requires participating states to recognize certain kinds of violations relating mostly to operating motor vehicles and the administrative actions taken in response to those violations, such as suspension or revocation of a person's operating privilege (DLA Code violations). Under the DLA, when a person who is licensed in one state that is a party to the DLA commits a DLA Code violation in another party state, the licensing state takes administrative action in response to the violation, based on information provided by the state in which the violation occurred. Administrative action by a party state is recognized by all other party states. The DLA also generally provides that records concerning a licensed driver are maintained only by the licensing state.

This bill requires DOT to identify by rule the violations and administrative actions under this state's laws that the DLA requires to be recognized as DLA Code violations and that describe the equivalent violations and administrative actions under the laws of other member states that DOT must recognize as DLA Code violations when the offense is not committed in this state.

Current law allows or requires DOT or a court, in a variety of circumstances, to suspend or revoke the operating privilege of any person, whether a resident or nonresident, who commits specified offenses in this state. In addition, in a variety of circumstances, current law allows or requires DOT to suspend or revoke the operating privilege of a resident for committing specified offenses in other jurisdictions and allows or requires DOT or a court to treat convictions in other jurisdictions as prior offenses. DOT may or must suspend or revoke the operating privilege of a nonresident, except with respect to a commercial driver license (CDL), upon receiving notice of a conviction for certain offenses in another jurisdiction.

To correspond to the state's joinder of the DLA, this bill substantially modifies the procedure for DOT's administrative suspensions and revocations of motor vehicle operating privileges. Under the bill, DOT may generally suspend or revoke the operating privilege only of persons who hold an operator's license issued by DOT or who are residents of this state and do not hold an operator's license issued by another jurisdiction (Wisconsin licensees or residents). A nonresident who commits a violation in this state is generally subject to the penalty provided for the violation except that, in lieu of suspension or revocation of the nonresident's operating privilege in this state, notice is provided to the person's state of licensure or residency. However, if the nonresident's state of licensure or residency is not a DLA state, or if the offense is not a DLA code violation, DOT may suspend or revoke the nonresident's operating privilege. The bill also allows certain offenses committed in other jurisdictions that, if committed in this state, would have been violations in this state to be grounds for suspension or revocation by DOT and to be counted as prior violations for purposes of court-ordered suspensions or revocations.

Under the bill, although a nonresident is technically disqualified as a matter of law from operating a commercial motor vehicle (CMV) upon conviction of specified offenses related to a CMV or CDL, the nonresident is not ordered administratively disqualified by DOT, and DOT does not record the disqualification of the nonresident in DOT's driver records unless required to do so by federal law. If DOT receives a record of conviction of a nonresident for an offense not required by federal law to be recorded in DOT's records, DOT must provide notice of the conviction and disqualification as a matter of law to the person's jurisdiction of licensure or residency. The bill also adds certain convictions in other jurisdictions that may result in disqualification. The bill allows certain offenses committed in other jurisdictions to be grounds for disqualification if they would have been violations in this state had they been committed in this state.

This bill also modifies, to correspond to the state's joinder of the DLA, DOT's procedures for maintaining driver records. Under the bill, in most circumstances, DOT must maintain a driver record only for persons who are Wisconsin licensees or residents. For such persons, DOT must maintain in the driver record any notice received from another jurisdiction of the revocation, suspension, or cancellation of the person's operating privilege in that jurisdiction. Rather than maintain a driver record for nonresidents, DOT must forward any record of conviction (as required under current law) or notice of any administrative action, including suspension or revocation of an operating privilege or disqualification by DOT, or of any test results, out-of-service order, or DOT hearing results related to driving or operating a motor vehicle while under the influence of an intoxicant, to the nonresident's state of licensure or residency.

Upon receiving notice that a Wisconsin licensee or resident has applied for an operator's license or transferred residency to another jurisdiction, DOT must transfer the person's driver record information to the other jurisdiction if the jurisdiction is a member of the DLA or if the jurisdiction accepts responsibility for maintaining the person's driver record. With two exceptions, DOT may not thereafter update the person's driver record unless required by federal law. If a person licensed in another jurisdiction applies for an operator's license in this state, DOT must request that the person's driver record be transferred from the other jurisdiction.

This bill also alters certain requirements related to issuance of an operator's license to a person moving to this state from another state.

This bill eliminates the requirements that DOT establish new designs for vehicle registration plates and reissue registration plates on an established schedule.

Under current law, DOT administers, in a manner provided under federal law, a single-state insurance registration system for for-hire motor carriers allowing interstate carriers to register in, and pay applicable fees to, a single state with regard to proof of motor carrier insurance requirements. Under federal law, the single-state insurance registration system is scheduled to be repealed and replaced by a unified carrier registration system.

This bill authorizes DOT to participate in the new unified carrier registration system and to impose registration fees on all motor carriers, including private motor carriers.

Current law requires DOT to conduct a motor vehicle emission inspection and maintenance program (I/M program) in counties where air quality does not meet certain federal standards. Under the I/M program, most motor vehicles that are subject to emission limitations established by DNR must pass periodic emission inspections and may not be registered by DOT unless they have passed these inspections. Certain motor vehicles are exempt from emission inspections. DOT is required to contract with third parties to perform vehicle emission inspections under the I/M program.

This bill exempts from emission inspections vehicles of model year 1967 to model year 1995, vehicles of model year 2007 or later that weigh between 10,001 pounds and 14,000 pounds, and vehicles of model year 2007 or later that are powered by diesel fuel. The bill also allows DOT to authorize or require third-party contractors to install and operate self-service inspection stations, at which the contractor may use different methods for emissions testing and equipment inspection than those used at inspection stations that are not self-service. The bill allows DOT to establish additional methods for emissions inspections.

Current law requires an environmental impact fee of $9 when a person registers a new motor vehicle or applies for a new certificate of title after transferring a vehicle. The environmental impact fee is credited to the environmental fund, and expires on December 31, 2007. This bill eliminates the expiration date.

Under current law, a person convicted of certain violations relating to operating a vehicle while intoxicated must pay a driver improvement surcharge of $355 in addition to any applicable forfeiture or fine, assessments, and costs. However, the surcharge does not apply to a person who commits a first violation of operating a vehicle with a prohibited blood alcohol concentration of 0.08 or more but less than 0.1 at the time of the violation.

This bill removes the exemption for first time offenders.

Transportation aids

Under current law, DOT makes general transportation aids payments to a county based on a share-of-costs formula, and to a village, city, or town (municipality) based on the greater of a share-of-costs formula for municipalities or an aid rate per mile, which is $1,862 for 2006 and $1,899 for 2007 and thereafter. This bill increases the aid rate per mile to $1,937 for 2008 and $1,976 for 2009 and thereafter.

This bill increases the maximum amount of general transportation aids that may be paid to counties from $93,682,400 in 2007 to $95,556,000 in 2008 and $97,467,100 in 2009 and thereafter. The bill also increases the maximum amount of aid that may be paid to municipalities from $294,736,000 in 2007 to $300,630,700 in 2008 and $306,643,300 in 2009 and thereafter.

Under current law, DOT provides state aid to local public bodies in urban areas served by mass transit systems to assist with the expenses of operating those systems. This bill increases the total amount of state aid for mass transit systems.

This bill creates a Safe Routes to School Program to promote children walking or riding bicycles to school and to increase the safety and reduce traffic in the vicinity of schools. The program must be consistent with the federal Safe Routes to School Program and incorporate regulations under that federal law.

Under current law, DOT administers a Local Roads Improvement Program, which includes an entitlement component and a nonentitlement component. This bill increases DOT's allocations for the nonentitlement component. The bill also requires DOT to award a grant of $60,000 from nonentitlement moneys.

Rail and air transportation

Under current law, DOT administers a Rail Passenger Route Development Program to, in part, fund capital costs related to Amtrak service extension routes or other rail service routes between Milwaukee and Madison and between Milwaukee and Green Bay. This bill expands the program to include routes between Chicago and Milwaukee and between Madison and La Crosse. The bill also increases general obligation bonding authority for the program from $50,000,000 to $82,000,000.

Under current law, DOT may contract up to $44,500,000 in public debt for the acquisition and improvement of rail property. This bill increases the limit to $66,500,000.

Other transportation

Under current law, DOT collects a supplemental vehicle title fee of $7.50, which is deposited into the transportation fund. An amount equal to the amount of the supplemental fees collected is transferred from the general fund to the environmental fund each year. This bill increases the supplemental vehicle title fee from $7.50 to $9.50 and transfers the fees collected from the transportation fund to the environmental fund.

The law governing repair, replacement, and refund under a motor vehicle warranty is known as the "lemon law." This bill creates a four-year statute of limitations for vehicle manufacturers to request a refund of sales tax on vehicles returned to them under the lemon law. The bill also creates a four-year statute of limitations for vehicle lessors or purchasers to request a sales tax refund from DOR when they have obtained from the manufacturer, under the lemon law, a refund of the purchase price but not the sales tax paid on the vehicle. The bill provides that vehicle manufacturers, lessors, and purchasers receive 9 percent interest on the sales tax refunded to them.

Under current law, DOT may contract up to $40,700,000 in public debt to provide grants for harbor improvements. This bill increases the limit to $53,400,000.

Veterans and military affairs

This bill allows DVA to transfer up to $7,000,000 during the 2007-09 fiscal biennium from the DVA appropriation for institutional operations to the veterans trust fund if there is money in that appropriation in excess of the amount needed to care for members of the veterans homes.

Under current law, to be eligible for burial at one of the state veteran's cemeteries, a veteran must meet certain conditions, including having been discharged or released from active duty in the U.S. armed forces under honorable conditions. This bill changes the conditions of discharge or release to being discharged under conditions other than dishonorable. An honorable discharge is given to a person who has served without any misconduct. A person may receive a discharge under conditions other than dishonorable if he or she engaged in misconduct that was not serious enough to warrant a dishonorable discharge.

This bill allows DVA to provide an annual payment of $25,000 for two years to the Center for Veteran Issues to provide outreach services to homeless veterans.

This bill increases the authorized bonding authority of DVA to make mortgage loans from $2,120,840,000 to $2,170,840,000.

Because this bill relates to public employee retirement or pensions, it may be referred to the Joint Survey Committee on Retirement Systems for a report to be printed as an appendix to the bill.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB40, s. 1 Section 1. 6.47 (1) (ag) of the statutes is amended to read:

SB40,62,5 6.47 (1) (ag) "Domestic abuse victim service provider" means an organization that is certified by the department of health and family services children and families as eligible to receive grants under s. 46.95 49.165 (2) and whose name is included on the list provided by the board under s. 7.08 (10).

SB40, s. 2 Section 2. 7.08 (10) of the statutes is amended to read:

SB40,62,10 7.08 (10) Domestic abuse and sexual assault service providers. Provide to each municipal clerk, on a continuous basis, the names and addresses of organizations that are certified under s. 46.95 49.165 (4) or 165.93 (4) to provide services to victims of domestic abuse or sexual assault.

SB40, s. 3 Section 3. 7.33 (4) of the statutes is amended to read:

SB40,63,5 7.33 (4) Except as otherwise provided in this subsection, each local governmental unit, as defined in s. 16.97 (7), may, and each state agency shall, upon proper application under sub. (3), permit each of its employees to serve as an election official under s. 7.30 without loss of fringe benefits or seniority privileges earned for scheduled working hours during the period specified in sub. (3), without loss of pay for scheduled working hours during the period specified in sub. (3) except as provided in sub. (5), and without any other penalty. For employees who are included in a collective bargaining unit for which a representative is recognized or certified under subch. V or VI of ch. 111, this subsection shall apply unless otherwise provided in a collective bargaining agreement.