February 19, 2008 - Introduced by Senators Kreitlow, Hansen, Breske, Wirch,
Coggs, Decker, Erpenbach, Lassa, Lehman, Miller, Plale, Taylor, Robson
and Risser, cosponsored by Representatives Smith, Berceau and Gronemus.
Referred to Joint Committee on Finance.
SB510,2,10
1An Act to repeal 20.143 (1) (cr) and 59.58 (6) (e) 4r. and 6.;
to amend 49.155 (1m)
2(c) 1. (intro.), 49.155 (1m) (c) 1g., 49.155 (1m) (c) 1h., 49.155 (1m) (c) 1m., 49.155
3(1m) (c) 2., 49.155 (1m) (c) 3., 59.58 (6) (cr), 71.22 (9), 71.26 (3) (x), 77.9971,
4231.01 (4) (a), 231.01 (4) (b) 1., 231.01 (4) (b) 2., 231.01 (4) (c), 231.01 (7) (a) 1.,
5231.01 (7) (a) 2., 231.01 (7) (a) 4., 231.01 (7) (c), 231.02 (6) (b), 231.03 (5), 231.03
6(7), 231.03 (8), 231.03 (11), 231.03 (13), 231.03 (14), 231.03 (15), 231.03 (16),
7231.03 (17), 231.03 (18), 231.03 (19), 231.04, 231.05 (1), 231.06, 231.07 (1) (b),
8231.07 (2) (a), 231.08 (5), 231.10 (1), 231.12, 231.13 (1) (intro.), 231.13 (2),
9231.16 (1), 231.20, 231.23, 560.126 (1) (intro.), 560.7995 (3) (b), 560.96 (2) (b)
10and 611.11 (4) (a);
to repeal and recreate 560.126 (1) (intro.);
to create 20.143
11(1) (cr), 25.40 (4), 38.27 (2m) (g), 49.155 (1m) (c) 1c., 59.58 (6) (cb), 59.58 (6) (e)
123g., 59.58 (6) (e) 3m., 59.58 (6) (f) and (g), 71.05 (1) (c) 9., 71.255, 71.26 (1m) (j),
1371.45 (1t) (j), 231.01 (6t), 231.01 (8c), 231.03 (6) (h) and 231.03 (6) (i) of the
14statutes; and
to affect 2007 Wisconsin Act 20, section
9201 (1c) (a);
relating
1to: requiring the combined reporting of corporate income and franchise taxes;
2supplemental funding for the renewable energy grant and loan program;
3Wisconsin higher education grants for technical college students; income
4eligibility for child care subsidies; incentive grants to technical college district
5boards for training in advanced manufacturing skills; airport development
6zone and technology zone tax credits; funding for the Department of
7Transportation; the Regional Transit Authority and commuter rail transit
8systems; authorizing the Wisconsin Health and Educational Facilities
9Authority to issue bonds to finance projects related to research facilities; and
10making an appropriation.
Analysis by the Legislative Reference Bureau
Combined reporting of corporate income and franchise taxes
This bill requires that all corporations and their subsidiaries file combined
reports and tax returns for state income and franchise tax purposes.
Renewable energy grant and loan program
Under current law, the Department of Commerce may award a grant or loan to
a business or researcher to undertake projects related to the development and
application of renewable energy technologies. This bill appropriates an additional
$8 million of general purpose revenue to the renewable energy grant and loan
program for the 2008-09 fiscal year.
Wisconsin higher education grants for technical college students
Under current law, the Higher Educational Aids Board administers the
Wisconsin higher education grant (WHEG) program for postsecondary resident
students enrolled at least half-time in public institutions of higher education in this
state. Currently, $17,548,000 is appropriated in fiscal year 2008-09 for the WHEG
program for technical college students. This bill increases that amount by
$1,300,000.
Wisconsin Works
The Wisconsin Works (W-2) program under current law provides work
experience and benefits for low-income custodial parents who are at least 18 years
old. Also, an individual who is the parent of a child under the age of 13 or, if the child
is disabled, under the age of 19, is eligible for a child care subsidy under the W-2
program if the individual needs child care services to participate in various
educational or work activities and satisfies other eligibility criteria. One of those
criteria is that the individual's family income may not exceed 185 percent of the
poverty line. If an individual is already receiving a child care subsidy, however, their
family income may be as high as 200 percent of the poverty line before they lose
eligibility. This bill increases those maximum family income levels to 210 percent
of poverty for an individual who is first applying for a child care subsidy and to 225
percent of poverty for an individual who is already receiving a subsidy.
Technical college grants for manufacturing skills training
This bill directs the Wisconsin Technical College System Board to award to
technical college district boards at least $5,000,000 annually in incentive grants for
training in advanced manufacturing skills, with priority given to welding.
Airport development and technology zones tax credits
Under current law, the total amount of income and franchise tax credits that
taxpayers may claim for conducting business in all airport development zones, for
all taxable years, is $9,000,000. Under current law, the total amount of income and
franchise tax credits that taxpayers may claim for conducting business in a
technology zone is $5,000,000.
Under this bill, the Department of Commerce may allocate the amount of
unallocated airport development zone tax credits to technology zones for which the
$5,000,000 maximum allocation is insufficient, except that the total amount
allocated from the airport development zone program to all technology zones may not
exceed $6,000,000.
Fiscal changes
Under current law, the biennial budget act (
2007 Wisconsin Act 20) requires the
secretary of administration to lapse or transfer $200,000,000 to the general fund
from certain appropriations to executive branch state agencies in the 2007-09 fiscal
biennium and another $200,000,000 in the 2009-11 fiscal biennium.
This bill decreases the amount of this required lapse or transfer under Act 20
to $175,000,000 in the 2007-09 fiscal biennium and $150,000,000 in the 2009-11
fiscal biennium. The bill also prohibits the secretary of administration from lapsing
or transferring more than a total of $25,000,000 in fiscal year 2007-08 from
Department of Transportation (DOT) appropriations; lapsing or transferring any
amount in fiscal year 2007-08 from any DOT appropriation except for the state funds
appropriation for the major highway projects program; and lapsing or transferring
any amount in fiscal year 2008-09, 2009-10, or 2010-11 from any DOT
appropriation. The bill also includes a mechanism for reversing any lapse or transfer
that occurs before the bill's effective date which would be prohibited if it had occurred
after the bill's effective date.
The bill requires the secretary of administration to transfer $75,000,000 from
the general fund to the transportation fund in fiscal year 2008-09 and $25,000,000
in each year thereafter. The bill also changes DOT's state funds appropriation for
the major highway projects program by decreasing the appropriation by $20,000,000
in fiscal year 2007-08 and increasing the appropriation by $55,000,000 in fiscal year
2008-09. The bill increases DOT's state funds appropriation for the state highway
rehabilitation program by $20,000,000 in each year of the 2007-09 fiscal biennium.
The bill also requires the secretary of administration and DOT to estimate additional
revenues of $50,000,000 in fiscal year 2007-08, and decreased revenues of
$50,000,000 in fiscal year 2008-09, for a DOT appropriation related to revenue bond
proceeds for the major highway projects program.
Under the bill, in submitting its 2009-11 biennial budget request, DOT may not
include in its appropriation base level $50,000,000 of the $55,000,000 increase to its
state funds appropriation for the major highway projects program or the modified
estimates related to its revenue bonding appropriation for the major highway
projects program.
Commuter rail transit system
Under current law, the counties of Kenosha, Milwaukee, and Racine must
create a Regional Transit Authority (RTA). The RTA is responsible for the
coordination of transit and commuter rail programs within these counties. The RTA
may receive funding by imposing a rental car transaction fee within these counties,
but the fee may presently be used only to hire staff, conduct studies, and prepare a
report to the legislature and the governor, due by November 15, 2008. The report
must include certain information, including a recommendation as to whether the
responsibilities of the RTA should be limited to collection and distribution of regional
transit funding or should also include operation of transit service and a
recommendation on whether the RTA should continue in existence after September
30, 2009.
This bill provides the RTA with the responsibility for constructing and
operating a commuter rail transit system connecting the cities of Kenosha, Racine,
and Milwaukee (KRM commuter link).
The bill increases the amount of the rental
car transaction fee that may be imposed if the governing body of the RTA approves
the increase. The bill reiterates the authority of the counties of Kenosha, Milwaukee,
and Racine, and of the most populous city in each of these three counties, to submit
to the electors in an advisory referendum the question of supporting this increase in
the rental car transaction fee. The bill also authorizes the RTA to issue bonds and
to use rental car transaction fees and bond proceeds for KRM commuter link
purposes. Under the bill, the interest income received from the bonds is exempt from
the state income tax. The bill also allows the RTA to participate in organizing
municipal insurance mutuals to provide insurance and risk management services to
the RTA. The bill requires the RTA's report due by November 15, 2008, to include a
study on the feasibility of adding certain commuter rail stops and of extending
commuter rail to a specified location.
WHEFA bonds for research institutions
Under current law, the Wisconsin Health and Educational Facilities Authority
(WHEFA) may issue bonds to finance certain projects of health or educational
institutions, to refinance outstanding debt of health or educational institutions, and
to finance a purchase of the state's right to receive any of the payments under the
Attorneys General Master Tobacco Settlement Agreement of November 23, 1998.
Projects of health or educational institutions that may be financed include, among
others, the acquisition of a hospital, the construction or operation of an ambulatory
surgery center or home health agency, and the construction, remodeling, furnishing,
or equipping of a health or educational facility or related structure.
This bill authorizes WHEFA to issue bonds to finance any project undertaken
by a research institution for a research facility, or to refinance outstanding debt of
a research institution. A research institution is defined in the bill as an entity that
provides or operates a research facility. A research facility is defined in the bill as
a building, institution, place, or agency of a nonprofit entity that is or will be used
in whole or in part for the advancement of scientific, medical, or technological
knowledge and that does not have a specific commercial objective. Project activities
for which WHEFA may issue bonds include construction, acquisition, remodeling,
furnishing, and equipping of research facilities, related structures, and structures
or items that are useful for the operation of research facilities.
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:
SB510, s. 1
1Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
SB510, s. 2
3Section
2. 20.143 (1) (cr) of the statutes is created to read:
SB510,5,54
20.143
(1) (cr)
Renewable energy grant and loan program; general purpose
5revenue. The amounts in the schedule for grants and loans under s. 560.126.
SB510, s. 3
6Section
3. 20.143 (1) (cr) of the statutes, as created by 2007 Wisconsin Act ....
7(this act), is repealed.
SB510, s. 4
8Section
4. 25.40 (4) of the statutes is created to read:
SB510,6,3
125.40
(4) Beginning in fiscal year 2009-10, and in each fiscal year thereafter,
2the secretary of administration shall transfer $25,000,000 from the general fund to
3the transportation fund.
SB510, s. 5
4Section
5. 38.27 (2m) (g) of the statutes is created to read:
SB510,6,75
38.27
(2m) (g) Beginning in the 2008-09 school year, at least $5,000,000
6annually is awarded under sub. (1) (b) 1. for training in advanced manufacturing
7skills, with priority given to welding.
SB510, s. 6
8Section
6. 49.155 (1m) (c) 1. (intro.) of the statutes is amended to read:
SB510,6,179
49.155
(1m) (c) 1. (intro.) Except as provided in subds. 1g., 1h., 1m., 2., and 3.,
10the gross income of the individual's family is at or below 185% of the poverty line for
11a family the size of the individual's family or, for an individual who is
already 12receiving a child care subsidy under this section
on July 1, 2008, the gross income
13of the individual's family is at or below
200% 225 percent of the poverty line for a
14family the size of the individual's family. In calculating the gross income of the
15family, the Wisconsin
works Works agency shall include income described under s.
1649.145 (3) (b) 1. and 3., except that, in calculating farm and self-employment income,
17the Wisconsin
works Works agency shall include the sum of the following:
SB510, s. 7
18Section
7. 49.155 (1m) (c) 1c. of the statutes is created to read:
SB510,7,319
49.155
(1m) (c) 1c. Except as provided in subds. 1g., 1h., 1m., 2., and 3., for an
20individual who, on or after July 1, 2008, applies for a child care subsidy under this
21section or reapplies for a child care subsidy under this section after losing eligibility,
22the gross income of the individual's family when the individual applies or reapplies
23is at or below 210 percent of the poverty line for a family the size of the individual's
24family and, after the individual is already receiving a child care subsidy under this
25section, the gross income of the individual's family is at or below 225 percent of the
1poverty line for a family the size of the individual's family. The Wisconsin Works
2agency shall calculate the gross income of the family in the same manner as gross
3income is calculated under subd. 1.
SB510, s. 8
4Section
8. 49.155 (1m) (c) 1g. of the statutes is amended to read:
SB510,7,105
49.155
(1m) (c) 1g. If the individual is a foster parent of the child or a subsidized
6guardian or interim caretaker of the child under s. 48.62 (5), the child's biological or
7adoptive family has a gross income that is at or below
200% 225 percent of the poverty
8line. In calculating the gross income of the child's biological or adoptive family, the
9Wisconsin
works Works agency shall include income described under s. 49.145 (3) (b)
101. and 3.
SB510, s. 9
11Section
9. 49.155 (1m) (c) 1h. of the statutes is amended to read:
SB510,7,1712
49.155
(1m) (c) 1h. If the individual is a relative of the child, is providing care
13for the child under a court order, and is receiving payments under s. 48.57 (3m) or
14(3n) on behalf of the child, the child's biological or adoptive family has a gross income
15that is at or below
200% 225 percent of the poverty line. In calculating the gross
16income of the child's biological or adoptive family, the Wisconsin
works Works agency
17shall include income described under s. 49.145 (3) (b) 1. and 3.
SB510, s. 10
18Section
10. 49.155 (1m) (c) 1m. of the statutes is amended to read:
SB510,8,219
49.155
(1m) (c) 1m. If the individual was eligible under s. 49.132 (4) (a), 1995
20stats., for aid under s. 49.132, 1995 stats., and received aid under s. 49.132, 1995
21stats., on September 30, 1997, but lost aid solely because of the application of s.
2249.132 (6), 1995 stats., the gross income of the individual's family is at or below
200% 23225 percent of the poverty line for a family the size of the individual's family. This
24subdivision does not apply to an individual whose family's gross income at any time
1on or after September 30, 1997, is more than
200% 225 percent of the poverty line
2for a family the size of the individual's family.
SB510, s. 11
3Section
11. 49.155 (1m) (c) 2. of the statutes is amended to read:
SB510,8,104
49.155
(1m) (c) 2. If the individual was eligible under s. 49.132 (4) (am), 1995
5stats., for aid under s. 49.132, 1995 stats., and received aid under s. 49.132, 1995
6stats., on or after May 10, 1996, but lost eligibility solely because of increased
7income, the gross income of the individual's family is at or below
200% 225 percent 8of the poverty line for a family the size of the individual's family. This subdivision
9does not apply to an individual whose family's gross income increased to more than
10200% 225 percent of the poverty line for a family the size of the individual's family.
SB510, s. 12
11Section
12. 49.155 (1m) (c) 3. of the statutes is amended to read:
SB510,8,1812
49.155
(1m) (c) 3. If the individual was eligible for a child care subsidy under
13s. 49.191 (2), 1997 stats., on or after May 10, 1996, and received a child care subsidy
14on or after May 10, 1996, but lost the subsidy solely because of increased income, the
15gross income of the individual's family is at or below
200% 225 percent of the poverty
16line for a family the size of the individual's family. This subdivision does not apply
17to an individual whose family's gross income increased to more than
200% 225
18percent of the poverty line for a family the size of the individual's family.
SB510, s. 13
19Section
13. 59.58 (6) (cb) of the statutes is created to read:
SB510,8,2220
59.58
(6) (cb) The authority shall be responsible for sponsoring, developing,
21constructing, and operating a commuter rail transit system connecting the cities of
22Kenosha, Racine, and Milwaukee, to be known as the KRM commuter rail link.
SB510, s. 14
23Section
14. 59.58 (6) (cr) of the statutes is amended to read:
SB510,9,224
59.58
(6) (cr) The authority may hire staff, conduct studies, and expend funds
25essential to the preparation of the report specified in par. (e)
and in furtherance of
1its responsibility under par. (cb) to develop and construct the KRM commuter rail
2link.
SB510, s. 15
3Section
15. 59.58 (6) (e) 3g. of the statutes is created to read:
SB510,9,74
59.58
(6) (e) 3g. A study on the feasibility of adding a commuter rail stop and
5station at points where any proposed commuter rail route would intersect National
6Avenue in the city of Milwaukee or Greenfield Avenue in the city of Milwaukee or
7both.
SB510, s. 16
8Section
16. 59.58 (6) (e) 3m. of the statutes is created to read:
SB510,9,119
59.58
(6) (e) 3m. A study on the feasibility of extending any proposed commuter
10rail project through the 30th Street corridor in the city of Milwaukee to the northern
11county line of Milwaukee County.
SB510, s. 17
12Section
17. 59.58 (6) (e) 4r. and 6. of the statutes are repealed.
SB510, s. 18
13Section
18. 59.58 (6) (f) and (g) of the statutes are created to read:
SB510,9,1814
59.58
(6) (f) 1. The authority may issue bonds, the principal and interest on
15which are payable exclusively from all or a portion of any revenues received by the
16authority. The authority may secure its bonds by a pledge of any income or revenues
17from any operations, rent, aids, grants, subsidies, contributions, or other source of
18moneys whatsoever.
SB510,9,2219
2. The authority may issue bonds in an aggregate principal amount not to
20exceed $50,000,000, excluding bonds issued to refund outstanding bonds issued
21under this subdivision, for the purpose of providing funds for the anticipated local
22funding share required for initiating KRM commuter rail link service.
SB510,9,2423
3. Neither the governing body of the authority nor any person executing the
24bonds is personally liable on the bonds by reason of the issuance of the bonds.
SB510,10,5
14. The bonds of the authority are not a debt of the counties that created the
2authority. Neither these counties nor the state are liable for the payment of the
3bonds. The bonds of the authority shall be payable only out of funds or properties
4of the authority. The bonds of the authority shall state the restrictions contained in
5this subdivision on the face of the bonds.
SB510,10,196
5. Bonds of the authority shall be authorized by resolution of the authority's
7governing body. The bonds may be issued under such a resolution or under a trust
8indenture or other security instrument. The bonds may be issued in one or more
9series and may be in the form of coupon bonds or registered bonds under s. 67.09.
10The bonds shall bear the dates, mature at the times, bear interest at the rates, be in
11the denominations, have the rank or priority, be executed in the manner, be payable
12in the medium of payment and at the places, and be subject to the terms of
13redemption, with or without premium, as the resolution, trust indenture, or other
14security instrument provides. The authority may sell the bonds at public or private
15sales at the price or prices determined by the authority. If a member of the governing
16body of the authority whose signature appears on any bonds or coupons ceases to be
17a member of the governing body of the authority before the delivery of such
18obligations, the member's signature shall, nevertheless, be valid for all purposes as
19if the member had remained a member until delivery of the bonds.
SB510,11,620
6. The authority may issue refunding bonds for the purpose of paying any of
21its bonds at or prior to maturity or upon acceleration or redemption. The authority
22may issue refunding bonds at such time prior to the maturity or redemption of the
23refunded bonds as the authority deems to be in the public interest. The refunding
24bonds may be issued in sufficient amounts to pay or provide the principal of the bonds
25being refunded, together with any redemption premium on the bonds, any interest
1accrued or to accrue to the date of payment of the bonds, the expenses of issue of the
2refunding bonds, the expenses of redeeming the bonds being refunded, and such
3reserves for debt service or other capital or current expenses from the proceeds of
4such refunding bonds as may be required by the resolution, trust indenture, or other
5security instruments. To the extent applicable, refunding bonds are subject to subd.
65.
SB510,11,107
(g) The governing bodies of the counties of Kenosha, Milwaukee, and Racine,
8and of the most populous city in each of these 3 counties, may submit to the electors
9in an advisory referendum the question of supporting an increase in the fees that
10may be imposed by the authority under subch. XIII of ch. 77.
SB510, s. 19
11Section
19. 71.05 (1) (c) 9. of the statutes is created to read:
SB510,11,1212
71.05
(1) (c) 9. The regional transit authority under s. 59.58 (6) (f).
SB510, s. 20
13Section
20. 71.22 (9) of the statutes is amended to read:
SB510,11,1914
71.22
(9) "Person" includes corporations, unless the context requires
15otherwise.
"Person" may include, as determined by the department, any individual,
16partnership, general partner of a partnership, limited liability company, registered
17limited liability partnership, foreign limited liability partnership, syndicate, estate,
18trust, trustee in bankruptcy, receiver, executor, administrator, assignee, or
19organization.
SB510, s. 21
20Section
21. 71.255 of the statutes is created to read:
SB510,11,21
2171.255 Combined reporting. (1) Definitions. In this section:
SB510,11,2422
(a) "Combined group" means the group of all persons whose income and
23apportionment factors are considered under sub. (2) to determine the taxpayer's
24share of the net business income or loss that is apportionable to this state.
SB510,12,3
1(b) "Combined report" means a return under s. 71.24 that is filed on a form
2prescribed by the department that specifies the income, credits, and tax of each
3taxpayer member of a commonly controlled group operating as a unitary business.
SB510,12,54
(c) "Commonly controlled group" means any of the following, but does not
5include an insurer that is exempt from taxation under s. 71.45 (1):
SB510,12,126
1. A parent corporation and any corporation or chain of corporations that are
7connected to the parent corporation by direct or indirect ownership by the parent
8corporation if the parent corporation owns stock representing more than 50 percent
9of the voting power of at least one of the connected corporations or if the parent
10corporation or any of the connected corporations owns stock that cumulatively
11represents more than 50 percent of the voting power of each of the connected
12corporations.
SB510,12,1513
2. Any 2 or more corporations if a common owner, regardless of whether or not
14the owner is a corporation, directly or indirectly owns stock representing more than
1550 percent of the voting power of the corporations or the connected corporations.
SB510,12,1716
3. Any 2 or more corporations if stock representing more than 50 percent of the
17voting power in each corporation are interests that cannot be separately transferred.
SB510,12,2218
4. Any 2 or more corporations if stock representing more than 50 percent of the
19voting power in each corporation is directly owned by, or for the benefit of, family
20members. In this subdivision, "family member" means an individual related by
21blood, marriage, or adoption within the 2nd degree of kinship as computed under s.
22852.03 (2), 1995 stats., or the spouse of such an individual.
SB510,13,423
(d) "Corporation" means a corporation, as defined in s. 71.22 (1k), that,
24regardless of where the corporation is located, would be subject to the taxes imposed
25under this chapter, if the corporation were doing business in this state. For purposes
1of this section, the business conducted by a pass-through entity that is directly or
2indirectly held by a corporation is considered the corporation's business
3proportionate to the corporation's distributive share of the pass-through entity's
4income. "Corporation" does not include a tax-option corporation.
SB510,13,55
(e) "Department" means the department of revenue.
SB510,13,96
(f) "Internal Revenue Code" means the Internal Revenue Code as defined in s.
771.22 (4) and (4m), including any provision of a federal tax treaty that expressly
8applies to the states of the United States, but not including any other application of
9a federal tax treaty.