This bill increases the terms of appointed members of the Group Insurance
Board from two years to four years, expiring on May 1 of the odd-numbered years.
safety and professional services
Elimination of DSPS
Under current law, DSPS and the various boards and councils attached to
DSPS regulate professional licensure and buildings and safety in Wisconsin.
Effective January 1, 2016, this bill eliminates DSPS and transfers all of its functions
to DFIPS. The bill attaches to DFIPS the various boards and councils attached to
DSPS under current law.
Professional licensure
Under current law, the licensure period for most credentials issued by DSPS or
a credentialing board under DSPS is two years, with renewal dates in either the
odd-numbered or even-numbered year.
This bill instead provides that the licensure period for most credentials is four
years, staggered so that the actual renewal dates for credential holders who have
even-numbered birth years are two years apart from the renewal dates for
credential holders who have odd-numbered birth years. The bill also provides that
the change from two-year to four-year credential periods may be phased in over
time.
Under current law, the Veterinary Examining Board (board) regulates the
practice of veterinarians and veterinary technicians in Wisconsin. Currently, the
board is under the umbrella of DSPS. This bill transfers the board to the DATCP.
Current law requires the Pharmacy Examining Board (PEB) to establish by
rule and administer a prescription drug monitoring program (PDMP). The PDMP
requires pharmacies and physicians or other practitioners to generate a record
documenting each dispensing of a prescription drug by the pharmacy or practitioner
that is covered by the PDMP, generally a controlled substance or other drug the PEB
identifies as having a substantial potential for abuse. Among other requirements,
the pharmacy or practitioner must deliver records generated under the PDMP to the
PEB. This bill transfers the PDMP to the Controlled Substances Board (CSB),
which, like the PEB, is attached to DSPS.
The bill also adds all of the following members to the current membership of the
CSB:

1. The chairperson of the Medical Examining Board or his or her designee.
2. The chairperson of the Dentistry Examining Board or his or her designee.
3. The chairperson of the Board of Nursing or his or her designee.
The bill also specifies that the PEB may disclose a record generated under the
PDMP to law enforcement agencies, including under circumstances indicating
suspicious or critically dangerous conduct or practices of a pharmacy, pharmacist,
practitioner, or patient.
Current law further requires the PEB to specify by rule the discipline for failure
to comply with the PDMP. Under the bill, those rules must permit the board to refer
to the appropriate board for discipline, or the appropriate law enforcement agency
for investigation and possible prosecution, a pharmacist, pharmacy, or practitioner
that fails to comply with the PDMP.
Buildings and safety
This bill transfers DSPS's responsibilities with respect to administration of the
laws regulating private on-site wastewater treatment systems (POWTS) to DNR
and eliminates a program to provide grants to individuals and businesses who are
served by failing POWTS.
This bill further transfers $21,000,000 from the petroleum inspection fund to
the transportation fund in each year of the fiscal biennium.
state government
State finance
This bill increases the amount of state public debt to refund any unpaid
indebtedness used to finance tax-supported or self-amortizing facilities from
$3,785,000,000 to $5,285,000,000.
The bill extends into the 2016-17 fiscal year a lapse requirement imposed for
most state agencies during the 2013-15 fiscal biennium. Under the bill, the
secretary of administration must lapse moneys to the general fund from executive
branch state agency general purpose revenue and program revenue appropriations.
The bill requires the cochairpersons of the Joint Committee on Legislative
Organization, during the 2015-17 fiscal biennium, to ensure that $9,232,200 is
lapsed from sum certain general purpose revenue appropriation accounts or is
subtracted from the expenditure estimates for any other types of appropriations, or
both.
Currently, in any fiscal year, the secretary of administration may temporarily
reallocate moneys to the general fund from other funds in an amount not to exceed
5 percent of the total general purpose revenue appropriations for that fiscal year. In
2013 Wisconsin Act 20, this amount was increased to 9 percent for the 2013-15 fiscal
biennium. This bill makes the increase to 9 percent permanent.
Current statutes provide that no bill directly or indirectly affecting general
purpose revenues may be adopted if the bill would cause the estimated general fund
balance on June 30 of any fiscal year to be less than a certain amount of the total
general purpose revenue appropriations for that fiscal year. For fiscal years 2017-18
and 2018-19, and for each fiscal year thereafter, the amount is 2 percent of total
general purpose revenue appropriations for that fiscal year.

This bill provides that for fiscal years 2017-18 and 2018-19, the amount is
$65,000,000; and for 2019-20 and each fiscal year thereafter, the amount is 2 percent
of total general purpose revenue appropriations for that fiscal year.
Other state government
This bill specifies a method by which most Building Commission approvals will
be made. Other than a pre-budget request for a project budget increase or of a
substantial change in an enumerated project, Building Commission approvals are
made by a passive review process. Requests for approval are submitted in writing
to the Building Commission. If, within 14 working days after the date of that written
request, a majority of the members of the Building Commission do not request that
the Building Commission schedule a meeting to review the request, the request is
approved.
Also under this bill, at the first meeting of the Building Commission following
the enactment of the biennial budget act, the Building Commission may 1) authorize
DOA to contract certain public debt in an amount not to exceed the amount that the
Building Commission is authorized to contract; 2) release an amount not to exceed
the amount of state building trust fund moneys to DOA for planning for enumerated
projects; and 3) authorize DOA to issue revenue-obligation refunding obligations.
Also, after this first meeting of the Building Commission, DOA must report quarterly
to the Building Commission regarding the status of projects under the state building
program.
Under current law DOA may prepare a request for the issuance of operating
notes and may submit the request to the Building Commission. The request must
be signed by the governor and the secretary of administration and is subject to review
by JCF.
Under this bill, DOA is not required to submit a request for the issuance of
operating notes to the Building Commission. Instead, DOA may prepare an
authorizing certification for the issuance of operating notes that must be signed by
the secretary, must be transmitted to the governor, and is subject to review by JCF.
Under current law, the Building Commission may authorize money from the
state building trust fund to be available for a project costing $760,000 or less and the
building commission may authorize the design and construction of any building, the
acquisition of land, or the repair or improvement of any building, structure, or
facility that costs more than $760,000 only if the project is enumerated in the state
building program. This bill increases each of those thresholds to $3,000,000. Also,
current law generally prohibits the state from entering into a contract for the
construction of or addition to any building in connection with a building project
involving a cost that exceeds $185,000 without approval by the building commission.
This bill increases that threshold to $760,000. Under current law, a contract to
perform for the state any engineering services, architectural services, construction
work, or limited trades work that involves an expenditure over $60,000 must be
approved by the governor. This bill increases that threshold to $150,000.
Under current law, DOA manages all engineering, design, and construction
work for state agencies, including the UW System, but DOA may delegate its
management authority to an agency for a specific project. Plans and specifications

for all work on UW projects are subject to approval of DOA. Under this bill, a project
for UWSA, which is created effective July 1, 2016, under this bill, is subject to
Building Commission approval and DOA supervision if the project is funded entirely
from general purpose revenues. For any project of UWSA that is not funded entirely
by general purpose revenues, Building Commission approval is not required and
UWSA is in charge of all aspects of the project, except that DOA is still responsible
for the bidding process on a project of UWSA that costs at least $760,000. DOA may
not charge UWSA for conducting the bidding process on such a project.
Currently, the UW System may not accept a gift or grant of real property valued
in excess of $150,000 or any gift of a building, structure, or facility that is constructed
for the benefit of the UW System without approval of the Building Commission.
Under the bill, this restriction does not apply to UWSA.
Under current law, the Office of State Employment Relations (OSER)
administers the state civil service and is attached to DOA for administrative
purposes. Within OSER there is a Division of Merit Recruitment and Selection. This
bill restructures OSER into a Division of Personnel Management in DOA, managed
by an unclassified division administrator, and restructures the Division of Merit
Recruitment and Selection, managed by an unclassified director, into a Bureau of
Merit Recruitment and Selection in the Division of Personnel Management.
Current law makes annual and biennial appropriations from the universal
service fund (USF) for various telecommunications and other programs. Current law
also requires the PSC to administer a grant program for constructing broadband
infrastructure in underserved areas. This bill provides funding for the grant
program by transferring to the PSC, at the end of each fiscal year or fiscal biennium,
the unencumbered balances from the USF-funded appropriations. The bill also
makes an appropriation from the USF to the PSC for the grant program. Also under
the existing grant program, the PSC makes grants to eligible applicants for the
purpose of constructing broadband infrastructure in underserved areas designated
by the PSC. Under this bill, the criteria for awarding grants under the program must
give priority to projects that are scalable.
This bill requires the PSC to study health issues related to wind energy systems
and submit a report on the study to the governor and legislature. Current law
requires the wind siting council to survey peer-reviewed scientific research
regarding the health impacts of such systems. The bill allows the PSC's study to
consider, but not replicate, those surveys.
Under current law, DOA administers requirements for providing relocation
assistance to persons displaced when their property is condemned for public
improvements. This bill requires the PSC, instead of DOA, to administer those
requirements. Also under current law, DOA has established a state energy office to
administer certain programs funded by the federal Department of Energy. The bill
transfers the administration of those programs to the PSC.
Current law permits DOA, or its agents, to enter into contracts for services, and
requires DOA to promulgate rules for the procurement of contractual services.
This bill clarifies that "contractual services" does not include information
technology products or services that are delivered using a subscription and central

hosting delivery model. The bill also eliminates the current requirement that DOA
promulgate rules requiring agencies to conduct a cost-benefit analysis and review
the continued appropriateness of contractual service procurements of more than
$50,000.
This bill permits DOA to transfer to DOA staff and equipment related to the
provision of information technology security or desktop management services from
another executive branch agency that has a secretary serving at the pleasure of the
governor. The bill also permits DOA to assess those executive branch agencies for
information technology services provided by DOA.
This bill requires DOA to administer human resources and payroll services,
finance services, budget and procurement functions, and information technology
services for certain state agencies and boards. This bill also requires DOA to study
an enterprise-wide model for shared services and to submit an implementation plan
incorporating the results of the study to the governor and the legislature by June 30,
2016.
Under current law, DOA administers the Technology for Educational
Achievement program, known as TEACH, that offers telecommunication access to
certain educational agencies at discounted rates and by subsidizing the cost of
installing data lines and video links. Under current law, subject to certain
exceptions, an educational agency may request access to only one data line or one
video link under the TEACH program. Under the bill, an educational agency may
request access to multiple data lines and video links under the TEACH program.
This bill transfers the governor's authority to make literacy improvement
grants and literacy development grants to DCF and transfers the Read to Lead
Development Council from the office of the governor to DCF.
This bill eliminates the authority of the secretary of state to appoint an
assistant secretary of state and the authority of the state treasurer to appoint an
assistant state treasurer.
taxation
Income taxation
Under current law, WEDC may certify a person to claim a state tax credit to
supplement the federal historic rehabilitation tax credit. Under the bill, FWDA may
certify up to $10,000,000 in any year for this tax credit and must adopt policies and
procedures for evaluating claims and certifying credits. FWDA may not certify a
person for the credit if the person has no state income tax liability, may certify a
nonprofit entity for the credit if the entity intends to transfer the credit to a person
with a tax liability.
The bill also requires a person to report to FWDA the number of full-time jobs
created by the activity for which the person claimed a credit. If the activity creates
fewer jobs than projected, the person must repay to DOR any amount of the credit
in proportion to the number of jobs created compared to the number projected.
The bill eliminates the portion of the supplement to the federal historic
rehabilitation tax credit that applies to buildings first placed in service before 1936.
Under current law, a person may claim the economic development tax credit for
eligible activities in economically distressed areas of the state, as determined by

WEDC. Currently, a person may also claim a jobs tax credit equal to 10 percent of
the wages paid to employees whose wages satisfy certain thresholds.
This bill eliminates the economic development tax credit and the jobs tax credit
and creates the business development credit. Under the business development
credit, a person certified by FWDA may claim all of the following:
1. An amount not exceeding 10 percent of the amount of wages that the person
paid to an employee in a full-time position.
2. An amount not exceeding 5 percent of the amount of wages that the person
paid to an employee in a full-time position, if the eligible position is at the claimant's
business in an economically distressed area.
3. An amount not exceeding 50 percent of the costs incurred to undertake
certain job-training activities.
4. An amount not exceeding 3 percent of the personal property investment and
5 percent of the real property investment in certain capital investment projects.
5. A percentage of wages paid to a full-time employee performing corporate
headquarters functions in Wisconsin.
The bill makes technical changes to the manufacturing and agriculture tax
credit and changes the jobs tax credit appropriation from a continuing appropriation
to a sum sufficient appropriation.
The bill modifies the definitions of "Internal Revenue Code," for state income
and franchise tax purposes, in order to adopt federal law provisions related to
cooperative and small employer charity pension plans and the tribal general welfare
exclusion act.
The bill repeals expired development zone tax credits.
Property taxation
Beginning with the property tax assessments on January 1, 2017, counties will
assess all property, other than manufacturing property, within their boundaries.
Counties that are contiguous to one another may also create regional assessment
units to assess all property within the region. A first or second class city that is
conducting its own assessments as of January 1, 2015, may continue to do so, but if,
in subsequent years, the city fails to assess property at its full value, the city becomes
subject to the county or regional assessment unit assessment.
The bill increases the appropriation for the school levy property tax credits so
that the total amount distributed to claim against a person's property tax liability
is $958,600,000 in 2016 and $853,000,000 in each year thereafter. Currently, the
annual distribution is $747,400,000.
Other taxation
This bill modifies the definition of a "retailer engaged in business in this state"
for use tax purposes, so that it includes the following:
1. Any person repairing or installing equipment in this state.
2. Any person delivering goods into this state in a vehicle owned by the business
that is selling the goods.
3. Any person performing construction activities in this state.
Under current law, DOR is authorized to set off refunds due a taxpayer against
debts that the taxpayer owes state agencies, local governments, and the federal

government. If any amounts remain after the setoffs are satisfied, the taxpayer
receives the balance. The bill specifies that a taxpayer does not have any right to
refunds until the setoff procedure has been completed.
The bill excludes the operator of a distribution facility selling tangible personal
property, coins, and stamps on behalf of a third-party seller from the definition of
"retailer" for purposes of imposing and collecting sales and use taxes.
Under current law, an agent of DOR may execute a tax warrant against the
property of a delinquent taxpayer. The property may be sold, in the county in which
the warrant is filed, at a sale or auction under the same procedures that would apply
to a sheriff's sale or auction of the property. Some of the applicable procedures
require that the auction be held between 9:00 a.m. and 5:00 p.m. and that the
property be within view of those attending the sale. The bill provides that a sale or
auction of property under a DOR issued tax warrant may be conducted by DOR or
by a third-party entity. In addition, the bill authorizes DOR or the third-party entity
to hold the sale in any county in the state and in any manner that DOR believes will
bring the highest net bid or price, including an Internet-based auction or sale.
The bill changes the effective date of provisions related to sales tax return
adjustments for private label credit card bad debt from July 1, 2015, to July 1, 2017.
Transportation
Highways
Current law specifies that southeast Wisconsin freeway megaprojects are
highway projects on southeast Wisconsin freeways that have a total cost of more than
$500,000,000. DOT may not provide funding for construction of these projects
without legislative approval. This bill authorizes DOT to provide funding for
construction of the I 94 east-west project.
Under current law, the Building Commission may issue revenue bonds for
certain major highway projects and transportation administrative facilities. This
bill increases the revenue bond limit from $3,768,059,300 to $4,779,086,300.
This bill also provides that revenue bond proceeds may be expended for the
southeast Wisconsin freeway megaprojects that have been approved by the
legislature.
This bill allows general obligation bonds in an amount not exceeding
$383,386,600 under one of the provisions authorizing bonding for DOT to fund state
highway rehabilitation projects.
This bill allows general obligation bonds, in an amount not exceeding
$255,000,000, for DOT to fund major interstate bridge projects. This bill allows
general obligation bonds, in an amount not exceeding $216,800,000 for DOT to fund
high-cost state highway bridge projects.
Under current law, with several exceptions, DOT is required to ensure that
bikeways and pedestrian ways are established in all new highway construction and
reconstruction projects funded from state or federal funds. Under this bill, these
requirements are repealed.
Under current law, highway improvement projects undertaken by DOT must
be executed by contract based on bids, with limited exceptions. This bill authorizes
DOT, for no more than three highway improvement projects, to enter into contracts

using a construction manager-general contractor process. Under this process, the
department contracts with a provider of construction services to supervise the design
work for the project and, subject to an acceptable proposal, contracts with the
provider of construction services for construction of the project.
Under current law, with certain exceptions, DOT may not expend more than 1.5
percent of the project costs of any highway improvement project on elements DOT
determines are primarily related to the aesthetic preferences of communities
adjacent to the project (community sensitive solutions). Under this bill, DOT may
not expend any state funds for community sensitive solutions.
Drivers and motor vehicles
Under current law, most operator's licenses issued by DOT must be renewed
every eight years. In general, an applicant for renewal of an operator's license must
pass an eyesight test and have his or her photograph taken.
Under this bill, if an applicant for renewal of a license to operate only "Class D"
vehicles satisfies eligibility requirements established by DOT, the applicant may
apply for renewal, and DOT may renew the license, by electronic means and without
a photograph. The procedure may be used by an applicant once in each 16-year
period.
Under current law, DOT issues identification cards, to be used for identification
purposes only, to residents who do not possess valid operator's licenses. The cards
expire eight years from the date of the person's next birthday. Under this bill, an
identification card issued to a person who is 65 years of age or older at the time of
issuance does not expire.
Under current law, various rules govern the expiration of operator's licenses.
Most operator's licenses issued by DOT expire eight years after the date of issuance.
Probationary licenses and original licenses other than instruction permits expire two
years from the date of the person's next birthday. Licenses issued to certain persons
who move to the state and who have been licensed in another state expire three years
from the date of the person's next birthday.
Under this bill, specific provisions regarding the expiration date of original
licenses other than instruction permits and licenses issued to persons who move to
the state are repealed. In general, under this bill, licenses issued to persons who
move to the state will expire eight years after the date of issuance.
Under current law, the fee for the initial issuance of a license authorizing only
the operation of "Class D" vehicles is $18 and the fee for the renewal of such a license
is $24. Under this bill, the fee for the issuance or renewal of such a license, except
a probationary license, is $24 and the fee for the issuance of a probationary license
is $18.
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