AB40: Bill Text

Under current law, instead of paying local general property taxes, public utilities and telephone companies pay taxes imposed by the state based on property value. These taxes are referred to as ad valorem taxes. Under this bill, DOR may use the same methods used for collecting delinquent income taxes, including imposing a levy on a taxpayer's property, to collect delinquent ad valorem taxes owed by public utilities and telephone companies.

Under current law, DOR may write off from its records all sales, use, withholding, motor vehicle fuel, gift, beverage, and cigarette tax liabilities that it determines are not collectible. This bill allows DOR to write off all tax and fee liabilities it determines are not collectible.

Under current law, the printing of tangible personal property is not a service subject to the sales and use tax if it results in catalogs or other printed materials designed to promote the sale of merchandise. Under this bill, printing of tangible property that results in advertising and promotional direct mail is also not subject to the sales and use tax.

transportation

Highways

This bill makes changes with respect to which highway operations and activities are considered highway improvements and which are considered highway maintenance, which affects the source of funding for these operations and activities. However, under the bill, some highway operations and activities, such as maintenance for roadside improvements and private contractor maintenance, can be funded from more than one appropriation. Under this bill, highway maintenance activities no longer include, and highway improvements no longer exclude, the installation, replacement, or rehabilitation of traffic control signals and intelligent transportation (IT) systems, but maintenance of traffic control signals and IT systems are still considered maintenance activities. The bill limits DOT's expenditure, from certain highway improvement appropriations, of moneys for the installation, replacement, or rehabilitation of traffic control signals and IT systems to a total of $20,000,000 in any fiscal year.

This bill allows DOT to enter into sponsorship agreements under which DOT displays a sponsor's advertising or promotional material at locations owned or controlled by DOT in exchange for the sponsor's payment of fees or provision of services to DOT. The bill also allows DOT to enter into partnership agreements under which DOT authorizes a partner to engage in commercial activity at locations owned or controlled by DOT in exchange for the partner's payment of fees or provision of services to DOT. Fees received by DOT under these agreements may be used by DOT for, among other purposes, maintenance and repair of state trunk highways and roadside improvements. Contracts for sponsorship agreements and partnership agreements must be awarded on the basis of competitive proposals.

The bill does all of the following:

1. Allows general obligation bonds, in an amount not exceeding $200,000,000, to be used to fund high-cost state highway bridge projects, which are projects involving the construction or rehabilitation of a bridge on the state trunk highway system that have a total estimated cost of more than $150,000,000.

2. Authorizes an additional $107,000,000 in general obligation bond proceeds to fund the Zoo interchange project and the I 94 north-south corridor project.

3. Authorizes an additional $200,000,000 in general obligation bond proceeds to fund southeast Wisconsin freeway megaprojects. Debt service on these bonds is paid from the general fund.

4. Increases the revenue bond limit, from $3,351,547,300 to $3,768,059,300, for major highway projects and transportation administrative facilities.

This bill eliminates DOT's bicycle and pedestrian facilities program, transportation enhancement activities program, safe routes to school program, and traffic marking enhancement program and creates instead a transportation alternatives program. Under this program, DOT may award grants to political subdivisions for transportation alternatives activities such as: construction, planning, and design of trail facilities and infrastructure-related projects for pedestrians, bicyclists, and other nondrivers; trail conversion of abandoned railroad corridors; construction of overlooks and viewing areas; and preservation of historic transportation facilities.

Under current law, if a highway or bridge that is not on the state trunk highway system (highway) is damaged by flood, the county or municipality having jurisdiction over the highway may petition DOT for payment of flood damage aid to cover part of the repair or replacement cost. This bill expands DOT's flood damage aid program to a disaster damage aid program. Under the bill, a "disaster" is defined as any of the following: 1) a severe storm, flood, fire, tornado, mudslide, or other natural event external to a highway; 2) the sudden failure of a major element or segment of the highway system due to a cause that is external to a highway; or 3) an event or recurring damage caused by any governmental unit or person acting under the direction or approval of, or permit issued by, any governmental unit and in response to an event described in item 1) or 2). The bill also prohibits DOT from paying disaster damage aid in excess of $1,000,000, in connection with disaster damage resulting from a single disaster, unless the governor approves the payment of aid.

Under current law, beginning July 1, 2014, DOT must maintain an inventory of completed designs for highway projects under the major highway projects program and the reconditioning, reconstruction, and resurfacing projects program. Under this bill, the estimated costs of the inventory of projects for each program must be not less than 20 percent of the annual amount of funding provided to each program.

This bill repeals a provision of current law that prohibits a southeast Wisconsin freeway rehabilitation project from adding vehicle lanes on I 94 adjacent to Wood National Cemetery.

Drivers and motor vehicles

Current law includes certain regulation of motor carriers engaged in interstate commerce. This bill imposes the same regulation on motor carriers engaged in intrastate commerce.

This bill increases the per pound of excess weight forfeiture rates that are imposed for unlawfully operating vehicles exceeding weight limits without a permit.

This bill also increases the penalty for a second conviction for violating weight limits while transporting raw forest products.

Transportation aids

Under current law, DOT provides state aid payments from the transportation fund to local public bodies in urban areas served by mass transit systems to assist the local public bodies with the expenses of operating those systems. This bill changes the funding source for those aids from the transportation fund to the general fund beginning on July 1, 2014.

Rail and air transportation

This bill increases the authorized general obligation bonding limit to $216,500,000 to acquire railroad property and provide grants and loans for railroad property acquisition and improvement.

Other transportation

This bill requires DOT to administer a surveying reference station system that consists of monuments that are used to generate latitude, longitude, and elevation data; reference stations that continuously transmit global positioning system data to a system server; and the system server, which receives and processes the data received from the reference stations. The bill also permits DOT to charge a fee to persons who access the system in an amount to be established by rule. All access fees received by DOT are appropriated for system maintenance and operation costs.

Under current law, a person who is convicted of certain violations relating to operating a vehicle while intoxicated must pay a driver improvement surcharge of $365 in addition to any applicable forfeiture or fine, assessments, and costs. A portion of the money collected from this surcharge is provided to DOT for chemical testing training and services provided by the state traffic patrol. Under this bill, driver improvement surcharge money is no longer provided to DOT for the chemical testing training and services provided by the state traffic patrol. The training and services are instead funded from the transportation fund.

This bill increases the authorized general obligation bonding limit to $87,500,000 to provide grants for harbor improvements.

Veterans

Current law imposes certain state residency requirements that apply to veterans and widows, widowers, and parents of living and deceased veterans who are seeking admission to veterans homes operated by the state. Also, under current law, DVA administers a priority system for admissions into a veteran home. Under the system, veterans have first priority, spouses have second priority, surviving spouses have third priority, and parents of veterans have fourth priority.

This bill eliminates all residency requirements, but gives priority to residents over nonresidents. The bill establishes a priority system within each of the four priority levels described above. Under the system, state residents who have resided in the state for more than six continuous months before the date of application have first priority, other state residents have second priority, and nonresidents have third priority.

Current law imposes certain state residency requirements on veterans and members of the U.S. armed forces for burial in a state veterans cemetery. This bill expands eligibility for burial in a state veterans cemetery to include anyone who is a resident of a state veterans home. The bill also requires DVA to maintain a waiting list for each cemetery and to give priority to state residents over nonresidents.

Current law imposes certain state residency requirements for a veteran to receive assistance based on the veteran's homelessness, incarceration, or other circumstances established by DVA. Such a veteran may be eligible for assistance from DVA only if the veteran is a resident of and living in Wisconsin at the time the veteran applies for assistance. The bill eliminates those residency requirements.

The bill directs DVA to pay $500,000 in fiscal year 2013-14 to VETransfer, Inc. (VETransfer), an organization that provides training and other assistance to veterans engaged in entrepreneurship. The bill requires VETransfer to use those moneys to make grants to Wisconsin veterans or their businesses to cover costs associated with the start-up of veteran-owned businesses in Wisconsin and to provide entrepreneurial training and related services to Wisconsin veterans. VETransfer must repay to the state any moneys not used by June 30, 2017, but DVA may extend that deadline.

The bill authorizes DVA to grant up to $50,000 annually to the Wisconsin department of the American Legion for the operation of Camp American Legion located in the town of Lake Tomahawk.

The bill modifies the amount of annual payments that DVA must make to certain federally recognized state veterans organizations in Wisconsin based on the amount a state veterans organization pays each year to its employees who provide certain services to veterans in Wisconsin.

Under current law, DVA is required to pay $100,000 annually to the Wisconsin department of the Disabled American Veterans for the provision of transportation services to veterans. The bill increases that amount to $120,000.

Under current law, DVA may make annual grants of up to $8,500 to American Indian tribes or bands for the improvement of a tribe's or band's services to veterans. The bill increases that authorization to up to $15,000 for each grant DVA makes to an American Indian tribe or band.

The bill establishes a tuition reimbursement program for veterans enrolled in the College of Menominee Nation or Lac Courte Oreilles Ojibwa Community College (tribal colleges). Under the bill, subject to certain limitations, DVA is generally required to reimburse a veteran for up to 120 credits of tribal college tuition if the veteran applies to DVA for reimbursement, is enrolled as a member of a federally recognized American Indian tribe or band in Wisconsin, and satisfies the bill's other eligibility requirements.

Under current law, the Board of Veterans Affairs (board) may approve or veto plans or modifications for established state veterans memorials and make recommendations for future memorials. This bill restricts the board's authority only to proposals for plans or modifications of memorials for which DVA has estimated that the costs will exceed $25,000.

Under current law, each nursing home is required to pay the state an assessment of not more than $170 per bed, per month. The assessment revenue is deposited in the MA trust fund and is generally expended for MA services for which the federal government contributes a share of the costs. Current law exempts Wisconsin veterans homes from having to pay the assessment for the 2011-13 fiscal biennium. This bill makes the exemption permanent.

Under current law, DVA employs commandants for the administration of veterans homes. Among other duties, a commandant may receive, disburse, and account for the personal funds of a resident of the veterans home the commandant oversees. Under the bill, the secretary of DVA or the secretary's designee may also receive, disburse, and account for the funds of a veterans home resident.

Under current law, documents that are evidence of service in the United States armed forces and that are in the possession of DVA may be disclosed only to veterans or their duly authorized representatives. Under current law, a "duly authorized representative" is a person who has written authorization from a veteran to act on his or her behalf, a guardian if the veteran has been adjudicated incompetent, or a legal representative if the veteran is deceased. A spouse or adult child of a veteran or a parent of an unmarried veteran may be also be considered a duly authorized representative of the veteran if there is no written authorization, guardian, or legal representative. This bill expands this list of relatives to include an adult sibling of a veteran.

Under current law, DWD administers the federal Disabled Veterans' Outreach Program, under which DWD employs specialists to provide services to meet the employment needs of eligible veterans, and the federal Local Veterans' Employment Representative Program, under which DWD employs representatives to facilitate employment, training, and placement services for veterans. This bill requires DWD and DVA, jointly, to prepare and submit to the secretary of the federal Department of Labor (secretary) a plan to transfer administration of those programs from DWD to DVA. If the secretary approves the plan, responsibility for administration of those programs is transferred from DWD to DVA.

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.

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.

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

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

AB40,1 Section 1. 5.05 (2m) (c) 6. b. of the statutes is amended to read:

AB40,56,8 5.05 (2m) (c) 6. b. The board shall enter into a written contract with any individual who is retained as special counsel setting forth the terms of the engagement. The contract shall set forth the compensation to be paid such counsel by the state. The contract shall be executed on behalf of the state by the board's legal counsel, who shall file the contract in the office of the secretary of state. The compensation shall be charged to the appropriation under s. 20.455 (1) (b) 20.505 (1) (d).

AB40,2 Section 2. 13.106 (1) (intro.) of the statutes is repealed.

AB40,3 Section 3. 13.106 (1) (a), (b), (c), (d) and (e) of the statutes are renumbered 13.106 (3) (ac), (ag), (aL), (ap) and (at).

AB40,4 Section 4. 13.106 (3) (intro.) of the statutes is amended to read:

AB40,56,17 13.106 (3) (intro.) By October 15 of each even-numbered year, the Medical College of Wisconsin and the University of Wisconsin-Madison Medical School shall submit a report to the governor, the joint committee on finance, and to the chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2), that provides information on all of the following:

AB40,5 Section 5. 13.106 (3) (a) of the statutes is renumbered 13.106 (3) (ax).

AB40,6 Section 6. 13.106 (4) of the statutes is created to read:

AB40,56,25 13.106 (4) (a) In this subsection, "rural or underserved urban medicine program" includes the Wisconsin Academy for Rural Medicine, the Training in Urban Medicine and Public Health program, any community medical education program of the Medical College of Wisconsin, and any other rural or underserved urban medicine program established after the effective date of this paragraph .... [LRB inserts date].

AB40,57,4 (b) By October 15 of each year, the Medical College of Wisconsin and the University of Wisconsin-Madison Medical School shall submit an annual report to the governor and to the chief clerk of each house of the legislature for distribution to the legislature under s. 13.172 (2) that provides information on all of the following:

AB40,57,6 1. The number of students enrolled in rural or underserved urban medicine programs.

AB40,57,8 2. The medical specialties and residency locations of the students in rural or underserved urban medicine programs.

AB40,57,10 3. The initial postresidency practice locations for graduates of rural or underserved urban medicine programs.

AB40,7 Section 7. 13.48 (2) (b) 3. of the statutes is amended to read:

AB40,57,17 13.48 (2) (b) 3. The Except as provided in sub. (14) (am), the building commission may lease space in buildings described under subd. 2. to other governmental bodies or to nonprofit associations organized for public purposes and shall charge those bodies or associations an annual rental which shall be not less than the cost of operating, maintaining and amortizing the construction cost of the leased space.

AB40,8 Section 8. 13.48 (14) (title) of the statutes is amended to read:

AB40,57,19 13.48 (14) (title) Sale or lease of lands property.

AB40,9 Section 9. 13.48 (14) (a) of the statutes is amended to read:

AB40,57,23 13.48 (14) (a) In this subsection, "agency" has the meaning given for "state agency" in s. 20.001 (1), except that the term does not include the Board of Regents of the University of Wisconsin System in s. 16.52 (7).

AB40,10 Section 10. 13.48 (14) (am) of the statutes is amended to read:

AB40,59,2 13.48 (14) (am) Except as provided in this paragraph and subject to par. (d), the building commission shall have the authority to sell or lease all or any part of a state-owned building or structure or state-owned land, including farmland, where such authority is not otherwise provided to an agency by law real property unless the sale or lease is prohibited under the state or federal constitution or federal law or the sale is conducted as a part of a procedure to enforce an obligation to this state, and may transfer land real property under its jurisdiction among agencies. The commission may sell or lease property under this paragraph with or without the approval of the agency having jurisdiction over the property and regardless of whether the property is included in an inventory submitted under par. (d). The building commission does not have the authority to sell or lease any state-owned real property under this paragraph after the department of administration notifies the commission in writing that an offer of sale or sale or lease agreement with respect to a property is pending under s. 16.848 (1). If the sale or lease is not completed and no further action is pending with respect to the property, the authority of the building commission under this paragraph is restored. Except with respect to property identified in s. 16.848 (2), if any agency has authority to sell or lease real property under any other law, the authority of that agency does not apply after the commission notifies the agency in writing that an offer of sale or sale, or a lease agreement, is pending with respect to the property under this paragraph. If the sale or lease is not completed and no further action is pending with respect to the property, the authority of the agency to sell or lease the property is restored. If the commission sells or leases any state-owned real property under this subsection, the commission may attach such conditions to the sale or lease as it finds to be necessary or appropriate to carry out the sale or lease in the best interest of the state. This paragraph does not apply to real property that is exempted from sale or lease by the department of administration under s. 16.848.

AB40,11 Section 11. 13.48 (14) (b) of the statutes is amended to read:

AB40,59,13 13.48 (14) (b) Subject to par. (d), the The building commission shall sell or lease on the basis of either public bids, with the building commission reserving the right to reject any or all bids in the best interest of the state, or on the basis of negotiated prices as determined through a competitive or transparent process. Buildings, structures and land mentioned in this subsection shall be subject to general property taxes levied by those taxing bodies within whose area they lie if used for commercial purposes, and shall be subject to special assessments for public improvements in the same manner and to the same extent as privately owned buildings, structures and land real property, subject to approval of the building commission when required under s. 66.0703 (6).

AB40,12 Section 12. 13.48 (14) (bg) of the statutes is created to read:

AB40,59,18 13.48 (14) (bg) If any property that is proposed to be sold by the commission under par. (am) is co-owned by a nonstate entity, the commission shall afford to that entity the right of first refusal to purchase the share of the property owned by the state on reasonable financial terms established by the commission.

AB40,13 Section 13. 13.48 (14) (br) of the statutes is created to read:

AB40,60,2 13.48 (14) (br) If the building commission sells or leases any real property under par. (am) that was under the jurisdiction of an agency prior to the sale or lease, the agency shall convey all systems, fixtures, or additional property interests specified by the commission to the purchaser or lessee of the property on terms specified by the commission. If the commission sells or leases a state-owned heating, cooling, or power plant that is under the jurisdiction of an agency, the agency shall convey all real and personal property associated with the plant to the purchaser or lessee on terms specified by the commission.

AB40,14 Section 14. 13.48 (14) (c) of the statutes is renumbered 13.48 (14) (c) (intro.) and amended to read:

AB40,61,9 13.48 (14) (c) (intro.) If Except as provided in par. (e), if there is any outstanding public debt used to finance the acquisition of a building, structure or land or the, construction, or improvement of a building or structure any property that is sold or leased under par. (b) (am), the building commission shall deposit a sufficient amount of the net proceeds from the sale or lease of the building, structure or land property in the bond security and redemption fund under s. 18.09 to repay the principal and pay the interest on the debt, and any premium due upon refunding any of that debt. Except as provided in s. 51.06 (6), if If there is any outstanding public debt used to finance the acquisition, construction, or improvement of any property that is sold or leased under par. (am), the building commission shall then provide a sufficient amount of the net proceeds from the sale or lease of the property for the costs of maintaining federal tax law compliance applicable to the debt. If the property was acquired, constructed, or improved with federal financial assistance, the commission shall pay to the federal government any of the proceeds required by federal law. If the property was acquired by gift or grant or with gift or grant funds, the commission shall adhere to any restriction governing use of the proceeds. Except as required under par. (e) and ss. 20.395 (9) (qd) and 51.06 (6), if there is no such debt outstanding, or, there are no moneys payable to the federal government, and there is no restriction governing use of the proceeds, and if the net proceeds exceed the amount required to repay that principal and pay that interest and premium be deposited, paid, or used for another purpose under this subsection, the building commission shall deposit use the net proceeds or remaining net proceeds in the budget stabilization fund. to pay principal and interest costs on other outstanding public debt. For the purpose of paying principal and interest costs on other outstanding public debt under this paragraph, the commission may cause outstanding bonds to be called for redemption on or following their optional redemption date, establish one or more escrow accounts to redeem bonds at their optional redemption date, or purchase bonds in the open market. To the extent practical, the commission shall consider all of the following in determining which public debt to redeem:

AB40,15 Section 15. 13.48 (14) (c) 1. to 4. of the statutes are created to read:

AB40,61,13 13.48 (14) (c) 1. To the extent that debt service on the property being sold or leased was paid from a segregated fund, other outstanding public debt related to that segregated fund should be redeemed.

AB40,61,17 2. The extent to which general obligation debt that was issued to acquire, build, or improve the property being sold or leased is subject to current optional redemption, would require establishment of an escrow, or could be assigned for accounting purposes to another statutory bond purpose.

AB40,61,18 3. The fiscal benefit of redeeming outstanding debt with higher interest costs.

AB40,61,20 4. The costs of maintaining federal tax law compliance in the selection of general obligation debt to be redeemed.

AB40,16 Section 16. 13.48 (14) (cm) of the statutes is created to read:

AB40,62,17 13.48 (14) (cm) If there are any outstanding revenue obligations, issued pursuant to subch. II of ch. 18, used to finance the acquisition, construction, or improvement of any property that is sold or leased under par. (am), the commission shall deposit a sufficient amount of the net proceeds from the sale or lease of the property in the respective redemption fund provided under s. 18.561 (5) or 18.562 (3) to repay the principal and pay the interest on the revenue obligations, and any premium due upon refunding any of the revenue obligations. If there are any outstanding revenue obligations, issued pursuant to subch. II of ch. 18, used to finance the acquisition, construction, or improvement of any property that is sold or leased under par. (am), the commission shall then provide a sufficient amount of the net proceeds from the sale or lease of the property for the costs of maintaining federal tax law compliance applicable to the revenue obligations. For the purpose of paying principal and interest costs on other outstanding revenue obligations, the commission may cause outstanding revenue obligations to be called for redemption on or following their optional redemption date, establish one or more escrow accounts to redeem obligations at their optional redemption date, or purchase bonds on the open market. Except as required under par. (e) and ss. 20.395 (9) (qd) and 51.06 (6), if the net proceeds exceed the amount required to be deposited, paid, or used for another purpose under this paragraph, the department shall use the net proceeds or the remaining net proceeds to pay principal and interest costs on other similar revenue obligations.

AB40,17 Section 17. 13.48 (14) (d) 1. of the statutes is repealed.

AB40,18 Section 18. 13.48 (14) (d) 2. of the statutes is renumbered 13.48 (14) (d) and amended to read: